Full text of Commercial and Financial Chronicle : February 24, 1955, Vol. 181, No. 5406

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ESTABLISHED I S3 9
U NIVErcSITY

OF MICHIGAN

R«*. U. 8. Pat. Office

Volume 181

Number

5406

New York 7, N. Y.,

Price 40

Thursday, February 24, 1955

Cents

Copy

a

EDITORIAL

:

We See It

As

Dreamers and planners as well

:

students of the trends of human
and

other

countries,

week of how
worldism"

far

so

were '

we

which

to fear

seem

Business Outlook Good,
But Some Roadblocks Exist

are

of

thought in this

much. We say

itself

protectionists

In

"again reminded"

reviewing the basic economic philosophy set forth

in the President's Economic

aim to encourage

kets is laudable.

private enterprise and competitive mar¬
Finds, as main cause of concern, the

declining rate of profits in business. Holds other threat¬
are:
(1) monopolistic power of labor
unions; (2) deliberate policy of monetary expansion;
(3) moves to rely on government to take up slack in
employment; and (4) the heavy tax burden.
ening dangers

and full

This,

of

convertibility of cur¬
hope of approximate stability.
is

old,

old

which

the

National

heartily endorse.

those

an

thinking

enthusiasts

as

story.

philosophy set forth in the "Eco¬
President," Jan. 20, 1955, is one

Association

affirmed

historic

our

•

gathering, but sealed the fate of any other de¬
signed for similar purposes so long as the phi¬
losophy of the Rooseveltian days remains in con¬
trol of things in this country. True enough that
President Roosevelt put an end to hopes of eco¬

the

and

our

Henry G. Riter, 3rd

a

new

Continued

on

understanding which would have
page

statement

Municipal

and

NATIONAL BANK
of INDIA, LIMITED
to

the Government

STATE

CORN EXCHANGE

Protectorate.

Authorized

Paid-Up
Reserve

bond department

30 BROAD

I

ST., N.Y.

Capital
Capital

with
to

as

view

a

BONDS

least

nificance

country's

the airlines but should be

to

of vital

concern

to all of you as taxpayers.

It

was

great privilege to have been associated with

a

Continued
•

Mr. Altschul

Club, Boston, Mass., Feb.

ment

on

page

delivered
15,

before The Boston Invest¬

1955.

cor¬

banking

Fund

and

Trusteeships

and

Municipal
Bonds

Exchange

Exchange

Cotton

Exchange

Exchange,

Commodity

of

Board

and

THE NATIONAL CITY BANK

N.

other

Cotton

Y.

NEW

OF NEW YORK

-Inc.
Trade

Miami

Bond

Dept. Teletype: NY 1-708

•

Detroit

Fla.

•

•

Active

Markets

Dealers,

Maintained

Banks and

The

Brokers

Pittsburgh

Coral

Beverly

•

Gables

Hills,

Cal.

NATIONAL
OF THE

CITY

BANK

OF NEW

YORK

Holland

Shawinigan

Water

and

Power

CANADIAN

Our Customers

CHASE

Switzerland

Amsterdam,

To

THE

Exchange Bldg.
4, N. Y.

Beach

Geneva,

undertaken

Bond Department

exchanges

YORK

Chicago

Hollywood,

122 Years of Service
to

Stock

Stock

York

New

business.

Executorships

York

Chicago

£3,104,687
description of

exchange

State and

1856

Public Service Co.

IN

Commission

T.L. Watson &Co.
Bank and

FIRST

<Soui/lW€4t COMPANY

American
50




Stock

Exchange

BROADWAY, N. Y.
AMBOY

Executed

On

COMMON

All
We

offer
at

Teletype NY 1-2270
DIRECT

WIRES TO

NEW

BROADWAY

NEW

YORK

TORONTO

MONTREAL AND

Goodbody
115

to

the

buy the above Rights
current

maiket,

"Highlights"

upon

request

DEPARTMENT

CANADIAN

MEMBERS
PERTH

Orders

Canadian Exchanges At Regular Rates

Members N. Y. Stock Exchange

BRIDGEPORT

Dallas

of New Hampshire

SECURITIES

THE

Insurance Stocks

Company
Rights expiring February 28, 1955

REMEMBER

32

i

address by

*An

New Orleans Cotton Exchange

Net

TO

to

the most ef¬

exceedingly that I cannot discuss this report
prior to its release as developing this study has been a
fascinating experience. It not only has considerable sig¬

American

£4,562,500
£2,851,562

The Bank conducts every

also

First

con¬

commercial

regret

on

New

in

London, E. C. 2.
En4 (London) Branch:
13, St. James's Square, S. W. 1.
Branches in India, Pakistan, Ceylon,
Burma, Aden, Kenya, Tanganyika,
Uganda, Zanzibar, and Somaliland

BANK

and

between
military operations, with
possible cost to the taxpayer.

Members

West

CHEMICAL

supply

for

and

H. Hentz & Co.

MUNICIPAL

and

Kenya Colony and Uganda
Head
Office:
26
Bishopsgate,

HAnover 2-3700

MATS

operations

afforded a complete picture of issues now registered with the SEC
potential undertakings in our "Securities in Registration" Section, starting on page 36.

Bankers

Securities

data

fective organization of the
air transport resources, as

Established

U. S. Government,

of

28

m

telephone:

airline

Underwriters, dealers and Investors in

—

with

recommendations

civil

presented by Mr.

NOW IN REGISTRATION

Commission

services

an¬

page

particular
to

sidering possible duplication of the

be-

way

(MATS).
This
been designed

has

porate securities are

DEALERS

State and

the

Altschul

Riter to the Joint Committee
the Economic Report, Washington, D. C., Feb. 16, 1955.

32

SECURITIES

work

-

*A

on

Service

economic

phase of economic expansion got under

release

It has been

responsibility to conduct the
study of the Military Air Transport

the mild recession of last year was arrested and

.

.

allegation that we had not yet reached the
point where we could afford to enter into any sort

Hoover

my,

on

developments in
1954, and prospects for 1955, in the
following words:

the basis

•

,

ernment out of business.

only if — this basic faith
to guide our government
people.

The President summarizes his

or
re¬

various reports designed to take gov¬

Current Economic Outlook

alysis of

or of any airline
retain me or has

in the past.

As you know, the current
is
shortly
to

great

and

—

now

me

Commission

continues

an

Continued

-

potential growth de¬
picted in the Report will be realized

if

may

tained

can

reliance

Commission,

that

competitive individual enter¬
as
the
driving and guiding
force in our economy.
We believe
that

of international

Manufacturers

of

Hoover

prise

put the hard way in 1933 when President Roose¬
velt sent his famous message to the London Eco¬
nomic Conference which not only doomed that

on

the

company

free

hopeful but unrealistic dreamer found this fact

nomic internationalism at that time

of

Although there may be some differ¬
ences
of opinion on specific meas¬
ures for
implementing this philoso¬
phy, the President has .clearly re-,

"One
foreign to
and planning; of the New Deal
it is to the protectionists. Many a

course,

At the outset, I want to make it clear that I speak in
private capacity. My views should not be construed as

a

aircraft

The basic economic
nomic Report of the

Worldism" in any real sense, was as

of

Report, spokesman for NAM
good, and the

holds the current outlook for business is

first-rate country willing to accept for
the conditions - essential to
anything ap¬

rencies with any

and organization of

progress

industry. He points out that the air lines now
have popular support. Gives data regarding the major or
"trunk" airlines' operations and indicates major airlines
are now
approaching a sound basis for investment Finds
airlines battling for new routes among themselves and
with outsiders. Concludes, despite problems facing the
industry, the airlines are capable of overcoming obstacles
and are establishing a higher plateau of earning stability.

a

proaching; free

the

Mr, Altschul describes the
the aviation

advisedly. The same underlying fact came forci¬
bly to light, at least for those with eyes to see,
last year when what
might almost be called a
campaign revolving about hopes if not plans for
"currency convertibility" came to naught. What¬
ever
reasons
may have been assigned for this
failure, the fact was that practically, if not lit¬
erally, nowhere on this earth was there to be
found

Aviation Advisory Service, New York City

i

President, National Association of Manufacturers

Transportation

By SELIG ALTSCHUL*

;

President, Thomas A. Edison, Inc., West Orange,
New Jersey

from the "one-

our

Air

By HENRY G. RITER, 3rd*

again reminded last

really

some

thoughtful

as

New Dimensions in

YORK

1

a

STOCK

NORTH

LA

Dohinioti Securities
Grpoeatiox

Co.

EXCHANGE

Members
and

Exchange Place, New York 5, N.Y.

Teletype NY 1-702-3

WHitehall 4-8161

New

other

111

40

SALLE ST.

CHICAGO

IRA HAUPT & CO.
Exchange

Exchanges

Broadway, N. Y. 6

WOrth 4-6000
Boston

York Stock

Principal

Teletype NY 1-2708

Telephone:

Enterprise

f

1820

2

The Commercial and Financial

(914*

fe

...

li¬

Thursday, February 24, 1955

A*

For

Banks, Brokers, Dealers

Air Products

Security I Like Best

A continuous forum in which, each week,

Common & A

in the^investmenf and

Aerovox Corp.

they to be regarded,

are

JACQUES

Holly Corp.
Lehman Corp.

New

Members

Metal & Thermit

as an

offer

Stock

York

Exchange

Lerner Stores

Inc.

For the

past four

the soft

years

goods market has been neglected

White Eagle Oil

and

Mr.

—

Mrs.

America

were

spending most of their disposable
i

on

n c o m e

New York Hanseatic

cars,

Corporation

sion

refriger¬
televi¬

.

BOSTON
Direct

Boston,

l'J20

Stock

WOrth 4-2300

other

called

Member

Broadway,

Exchange

New

5

Teletype NY 1-40
PHILADELPHIA

-

Wires

Private

Chicago,

to

Cleveland,

Portland. Me.. Providence, San Francisco

of

Rights & Scrip

ing power to do well in the period

immediately

ahead.

Retail sales for the whole coun¬

(four weeks ending Jan. 29)
10% higher than in like

try

Since 1917

McDonnell & fb.

of 1954.
For the same
Lerner Stores- has just

shown

York Stock

American
120

Stock

million

Exchange

the

Exchange

BROADWAY, NEW YORK 5
TEL. REctor

the

2-7815

to

past

World

of

during

Immediately

years.

end

$40

from

million,

$151

14

the

after

increased

have

II,

War

profit margin amounted
During the fiscal year

net

3.20%.

to

Jan.

ending

1949, this figure

31,

Trading Interest In

jumped up to 4.67%. Since then,
the margin of profit has declined
to less than 2%.
In 1953, it was

American Furniture

only

Basset! Furniture Industries

is

Mills

1TRADE8,TAYLOR & CO., Inc!
Lynchburg, Va.

the 12
1955 —

31,

another

in

profit

of

Percentage

in

probability will be about the

TWX LY 77

profits, in percent¬
ages, before income and excess
profits taxes, have moved up and
down even more violently.
In
1943, this figure was as high as.
10%. Even in 1948, when the rec¬
ord

$8.20 a share,
approximately
$4.90 after taxes, the primary op¬
erating profit was just under 8%.
earnings

Active

Trading Markets in

the

past

two

years,

gross

operating profits have been as
low as they can be expected to

Harbor Plywood

be,

Iron Fireman

I

Hunt Foods, Pfd.

averaging about 3%.
discuss these

detail

Longview Fibre
PatHra fiiast Securities

were

taxes, and

For

—

ZiLKA, SMITHER & CO
Portland-5-Oregon

because

nearer

showed

some

lies

the

r

an

for

14%

above - mentioned
increase of just under
the month of January.
as

The management confidently ex¬

PD 155

V
IP"

pects

substantial

a

increase

in

sales for 1955 over 1954, but pbviously does not want to be in the

forecasting business. I feel fairly
secure
in projecting an average

Trading Markets

10% increase for the current fis¬
cal

Indian Head
Mills

which

year,

sales

for

the

would
fiscal

current

make
year

approximately $165 million. This
figure may be low, father than
high. • Furthermore, because of

improvements, economies in
operation, and the strong likeli¬

many

Pfd.

hood

of- loss

1955

Common &

than

in

sales

resistance^ in

1954,

I

conserva¬

tively estimate a gross operating
margin of profit, before taxes, of
4%, which would bring down a
net of $6,600,000.
Figuring taxes

QfVimheinwi&,<8o>.

at

the

fore,
Members New York Stock
Exchange

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

Phone: HA 2-8766

Telei NY 1-3222




down,
share.
on

the

side.

rate

same

net
to

the year be¬

as

profits

would

$3,168,000,

This

be

this year.

on

re-r

By that

will

be

smaller

outlay

in

la; ge

a

any

figure

or

is

come

$2.64

a

probably

low, rather than the high

29,397 shares of 4^.%
and 1,200,000 shares of

are

preferred

Sinking fund debentures, car¬
rying a 3% coupon, total $8,500,000 and are reduced by $300,000
annually.
There
are
$4 million of 4%
notes

payable which

also re¬
Both is¬

are

duced $334,000 annually.
sues

due in

are

As

this

there

is strictly

U.

S.

Cash

cash basis,

a

practically

are

receivable.

accounts

no

in

bank

and

securities

Government

on

capital

at-,

are

areas

on

JAPANESE

opened

ment

of

the

unit

of

selling

require

the

of

current

of

the

a

figure.

a

Securities Co., Ltd.
Established
Home

111

215

are

stores

popular priced dress apparel, lo¬
cated in the important
shopping
centers in

42

States and

which

at

volume

of Lerner

of

at

this time

conviction

our

is because

that

the

soft

goods

business, which has been
in a bad way for the last three or
four
years,
is in
the primary
stages of a decided upturn.
In

view

of

the

continued

high

employment throughout the U. S.,
the prospect for sales improve¬

the

Dis¬

Columbia, with the great¬
single concentration in the

metropolitan New York
T h

e

its

still

should

further.

of

the

expand

General

Currently,

retail

Batteries, Inc.
•

Growth Situation

•

Yield

•

Data

fullest.
that

The

there

in

is

management
excellent

an

creased

birth

million

births

recorded

were

U. S.)
In
conclusion:

I

in

cast for the current year,

cities

It

has been pointed out that gains in
sales of apparel in the months of
November

and

far

expectations,

above

that

cash
as

December

had

consumers

for

excess

personal things

for Christmas gifts.
All
types of hard

tending toward

were

indicat¬
as

well

petition

goods

manner

in

it is my belief that purchas¬

ing

power

consumer

now

will focus toward soft goods lines.

Strong consumer buying of soft
godds should permit a most satis¬
factory inventory turnover with¬
out the need for paring prices and
sales promotions.
This is one of

the

Lerner

man¬

have

stores.

probably

pome

adding

In the

$2y2 million

capital

before.

fiscal

MONTE
A

J.

Members

New

government

was.

is

The Trane

year

with

before.

$18

Members New

York

Stock Exchange

71 Broadway, New

York (6)
Teletype
NY 1-61

Telephone
BOwIing Green 9-7027

Since 1932

Specialists in

ism is

running
strong. During
such

IDS

■F. W.-

CRAIGIE&CO,
RICHMOND, VIRGINIA
Bell System Teletype: RH 83 & 84

Telephone 3-9137

periods,

demonstrated
its

ability

to

grow

in

ture

through

capable

sta¬
man¬

agement and
the alert
de¬

year

velopment
available

Monte

J.

Gordon

Trane,

which

sought.

o

Over-the-Counter

Quotation Services
for 41 Years

f

op¬

portunities

cash

the

MUNICIPAL E

the
company
which
has

$16 million,

million

CAROLINA

Exchange

sharply rising prices when optim-;

which

The reason for this

Stock

The search for value in securi¬
ties is always underway with
par¬
ticular emohasis during periods of

spent for

say,

NORTH and SOUTH

Company

in¬

bonds—aggre¬

gated approximately

compared

to

Hay, Fales & Co.

GORDON

York

Reserves for depreciation

items—that

op¬

Mgr. of Research Dept.
Bache & Co., New York
City

close to $2 million last year.

plus

the

by

sst.

period,

$4,400,000 the

Cash

Quoted

request

VIRGINIA—WEST VIRGINIA

additional

improvements,

compares with

were

1954

—

on

being the most capable, intelli¬

company has continued its
program of
improving and' en¬

and

im¬

gent, efficient and aggressive

The

larging

Sold

which the competition
Lerner management

crease.

j

—

the

why I believe that
margins should be well
and

been

forcibly

reasons

maintained

Bought

com¬

most

refers to

various

country,

in direct

and

pressed

the

are

and

profit

Oil

depart¬

are

with

agement,

as

Empire State

eration of its kind in the
country.

than ample
supply during the last few years,

the

throughout
of whom

most

more

of the

Telephone: DIgby 4-0985

haver talked
of

side.

1926

80 Broad St., New York 4

Circular

executives

conservative

in

the

store

the

STOEHR, Inc.

Established

population and the rising
(In 1954, over four

ment

on

LEWIS &

rate.

number

be

Capital Gains

Request

feels
future

wear,
especially
taking into consideration the in¬

a

course,

outlets

children's

quite

private estimate would, of

—

on

equipped, and this new de¬
velopment is being pushed to the

with

any

Dry

so

encouraging. - The Lerner
management has not made a fore¬
but

Bankers

area.

currently
is
children's wear

company

70%

some

are

ment in the current fiscal year is

niost

Branches

program

Altogether, there
selling women's

division

for

1897

Tokyo—70
Investment

&

Broadway,N.Y. 6 COrtlandt 7-5680

adding n.w
continue, the overall
cash outlay should be
materially
reduced
below the' $2V2
million

takes advantage

principal reasons
recommending the purchase

Office

Brokers

will

up

our

write

improving .and

units

building

of

or

Yamaichi

frac¬

Thus, in the

while the

year,

Call

new

expend¬

only

knowledge

and

over.$200,009, bat,
new
conditions, the

this

with

Japanese potential.

material.

opening of

actual expenditure is

tion

is

well

the

investors

require¬

equipment

the

would

iture

only

corporation

bills

One

have unusual appeal

may

lease

a

of

<The

est

of cash discounts
all opportunities.

offices

SECURITIES

trict of

and

branch

our

penditures.

ordinarily total between $16
and $18 million, fluctu¬
ating according to the size of the
inventory. The company pays its
promptness

to

to investors with vision—

million

great

wires

basis where the landlord provides
all the necessary work and ex¬

hand

with

NY 1-1557

im¬

now

units"

spent last year.

1967.

Direct

for

new

Exchange
Exchange

Mobile, Ala.

in

to a.tera.ion costs,

way

many

under

common.

increased

Landlords

in suourban

up

Stock

New Orleans, La. - Birmingham, Ala.

tenants by contributing'

new

American

One impor¬
should
be
the,

contribution

minor

more.

cash

year,

fairly large amounts.
tant

Stock

York

New

Members

possibility

current

Normally,

ago,

years

Steiner, Rouse & Co.
19 Rector St., New York 6, N. Y.

strong

a

the

balances

Sold—Quoted

HAnover 2-0700

is

in

other

five

$2.rate of

ing

figures in
therein

groundwork
for
a
projected
higher stock market valuation.
The sales figures published last
week,

There

that,

display

Operating

before

—

for

say,

Jan.

available

same.

life Insurance Co. of Va.

LD 59

all

to

ending
be

month.

Commonwealth Natural Gas
Dan River

months
should

Camp Manufacturing

the figures for

1.68%, and

1954—that

will

rate

an¬

Bought

were

somewhat larger.

usual

13 6/10%.

of

increase

an

Sales
Members

$1.50

share valuation should
the 30 level.1

the

were

periods
period,

the

that

dividend

There
Jacques Coe

expect effici¬
ently run re¬
tail chains catering to mass buy¬

Specialists in

30c

of

Monte J.

inventories

in

1

—

distribution

—

Louisiana Securities

Members

because

was

which event the price level could

replen¬

ishment

current

Company

appreciate still

soft

wave

goods

the

at

Trane

Gordon, Asst. Manager of Re¬
search Dept., Bqche & Co., New
York City. (Page 2)

tract

the

buying

a

look

new

when

1959,

For the
longer pull,-it is the
expectation and hope of the man¬
agement eventually to return to

obability
will, inaugu¬

rate

to

provements.

be

all

in

a

time,

should,

and

take

1940

stored later

year

1 9 5 5

The

the
corporation was in a fast growing
period, dividend distributions did
not average more than 50%
of
earnings.
During the last five
years this policy has been some¬
what
liberalized, with distribu¬
tions averaging closer to 60% of
earnings.
The management is expected to

nual

p r

Hartford, Houston, Philadelphia

New

Stores—Jacques Coe, Se¬
Partner, Jacques Coe &
Co., New York City. (Page 2)

lent likelihood

so-

neces¬

This

Alabama &

■

Selections

Lerner

to

quarterly, or $1.20 per annum.
opinion, there is an excel¬

luxuries.

sary

York

Their

In my

and

sets

to

he, nor
sell the securities discussed.)

dividend

ators,

American

particular security.

a

intended

not

are

From

COE

Senior Partner, Jacques Coe & Co.
New York City

Investors Div. Services "A"

120

of experts

group

Week's

Participants and

nior

Getchell Mine, Inc.

Established

This
Forum

advisory field from all sections of the country

(The articles contained in this forum

General Motors, Common

Associate

different

a

participate and give their reasons for favoring

Brown Allen Chemical

Time

The

:;ki

is

Such

National Quotation Bureau
Incorporated

a

company is
The Trane Co.

maintains

Continued

sales

Established 1913

4€Front Street
CHICAGO

on

page

31

NewYork4,N.Y.
SAN FRANCISCO

Number 5406

181

Volume

.

.

.

The Commercial and Financial Chronicle

\

(915)

INDEX

The State of the Nation

licHTfnsifin

"

Articles and News

By NICHOLAS E. PETERSON*

Vice-President, First National Bank, Boston

—Henry G.

mid-year

providing a sustaining or expand¬
Says there may possibly be a
in the uward trend due to strikes and summer

pause

slackness

the

on

economy.

general, but the stimulating forces are in the
ascendency, both at home and abroad. Reviews briefly the
economic progress in the last quarter century, and lists among
gains,

higher standard of lining and

a

able redistribution of income.
in

shaping

nomic

ward

in

entered
ous

activity

the
the

fourth

new

up¬

quarter

and

posed,

year

at

in

tio

likely be taken that would

output

gain for the

well

o n

*•

,as

.by easy money"

>

_

0

t

N.cholas E. Peterson

Off
last

during

/

x

summer

around

at

however,

in October and rose to 130 in
December, the high point of the

cline

Somewhat more than one-

half of the set-back from

the 1953

peak has been recovered.

governing the trend of business
activity shows that the principal
downward pressure exerted from
the second quarter of 1953 through
the first half of 1954 was the $25
billion .reduction in spending for
business inventories and in Fed¬
eral outlays for goods and serv¬
ices. The downward trend of these
two forces has run its course. In¬
liquidation, inventories
have been accumulating since last
of

stead

November.

have

fense

Expenditures for de¬
off at around

leveled

and indications are
will continue around
this level throughout the year un¬
less a worsening in the interna¬

billion,

$40

that

they

tional

should

situation

cause

an

a

a

sustaining

ence

on

that will provide

factors

expanding influ¬

or

gain

in the con¬
struction industry, as indicated by
the
sharp increase in contracts
awarded; Housing is in a vulner¬
able position because of the thin
equity of a large proportion of
Further

owners

new

gains

because

and

new

housing starts are increasing at a
more rapid pace than fam¬

much

ily formations. The terms for fi¬
nancing homes are far too liberal.
Mortgage
debt
for one-to-four
family homes has passed the $75
billion
mark
and
has
nearly
doubled since 1949. It is reported
that 40%

or

more

of current new

underwritten
by the Federal Government. In
view of the unhealthy situation,

home mortgages are

♦An
Feb.

address by Mr. Peterson before
Association, Boston, Mass.,

Budget Message, "The dollar value
of

stockpile

our

of strategic

ma¬

terials

is expected reach 78% of
the minimum objective, compared
with 58% in 1954."

The rise in production and
sales
will
generate "steam" for
the rise in business activity suffi¬
(6)

cient

to provide

Cumberland

Dies

for

expansion

an

"Wall

"Normal"

Building

Sees Gold Market Assuming

Appearance

Program

year

be a pause at mid¬
to strikes and summer
in general.
Some au¬
that

feel

business
for

may

the

Plausible
vanced

following
level off

rest

of

arguments

for

an

such

or

the

can

de¬

year.

be

ad¬

projection, in¬
cluding overproduction of auto¬
mobiles, a decline in housing, pos¬
sibilities of

a

a

spending, tightening
rates, and the like.

While

given

these

of

balance

it

should

factors

consideration

jection

in

business
would

any

of

Guild

'.

As

We

See

It

(Editorial)

Bank

and

-•

Insurance

Man's

Stocks

25

Bookself

12

Steel
Coming Events in the Investment Field
Dealer-Broker Investment Recommendations

8

Einzig: "British Stock Exchange Profits"

•




27

Washington Ahead of the News—Carlisle Bargeron

Mutual
News

of Current

maintain

than

250

Request

on

trading

markets

over-the-counter

in

more

securities

Singer, Bean

35

Funds

About

Bankers

and

HA 2-0270

40 Exchange PI., N. Y.i
Teletype NY 1-1825 & NY 1-1826 '

24

Wilfred

May

5

Reporter

Governments

27

Our

Reporter's

Public

on

Utility

Curtain."

On

the

Continued

assump¬

Report.-

—

Securities

Now

in

Prospective

page

14

Glens Falls

Chicago
<

Worcester

LIKE COMPANY

41
Nelco

Securities

Salesman's

Corner__

Metals,

signed

an

100% owned, has
additional contract with
Energy Commission to
enlarge the facilities of the $5,000,000 plant for the manufacture of
metallic calcium and high purity

26

the Atomic
The Market

.

.

and You—By

.

Wallace Streete

16

The

Security I Like Best

2

The

State

4

of Trade

and

Industry

boron

Washington

and

1

You

Published Twice Weekly

44

1

■

Drapers'

Gardens,

London,

lan<1' 0/0 Edwards

C.

E.

Eng-

R
B.

DANA
DANA

Publishers
publishers

COMPANY
LOMrAN x,

Park Place, New York 7,

HERBERT

ore

DANA

the post Office at
Qf M&rch

SEIBF.RT,

issue

—

Dominion

quotation

and

Offices:

135

South

La

Salle

of

per year; in
$58.00
per
year.

$55.00

Canada,

St.,

(Telephone STate 2-0613);

and

Quotation

Record

fate

Incorporated

—

Monthly,

BOSTON

(Foreign postage extra.)

<" 'ha n-ctuauono in

0f.exChange,

remittances for for-

elgn subscriptions and

advertisements must

be made in New York funds.

request.

DAYTON HA1GNEY & GO.

Telephone
fhe

on

75 FEDERAL STREET

Other Publications
Bank

$37.00 per year.

uranium tetra-

New

Other Countries, $62.00 per year.

1955

5KMTS5? etc? bank Cleann8''
city news, etc.).
3, 111.

or

by calcium."

187g

Si
Pan-American Union,

President

market

fluoride

Memorandum

(general news and adand every Monday (com-

statistical

Other

at

.depend

all techniques for ex¬
uranium from crude
on
the reduction of

Subscription Rates

Thursday

vertislng. issue)

Chicago

,

under fche

N

N. Y.

to 9576

Thursday, February 24,
Every

ar^
york

pure

uranium fluoride

matter Febru-

SEIBERT, Editor S Publisher

D.

WILLIAM

2-9570

second-class

as

"At present

tracting

Smlth'

Company
Reentered

magnesium. Company
producer of metallic

sole

calcium in the U. S. A.

Copyright 1955 by William B. Dana

CHRONICLE

Reg. U. S. Patent Office

free

the

is

t

TELETYPE N. Y. 1-5

ENGLAND

NEW

36

Offerings

Security

to

Chicago.. Los Angeles

<

18

Registration

..

8
26

L—

Securities

Exchange

'

Direct Wires

Philadelphia

material

no

on

Railroad

pro¬

trends, on
that the

mackie, Inc.

&

30

Banks

Our

Securities

appear

tion that there will be

Schenectady

Eng.

6

Business Activity

Observations—A.

sta^e

Nashville

*Prospectus
We

ST., NEW YORK 4, N. Y.

•

Products

5

WTII TAW
WILLIAM

Boston

Films, Inc.

-Cover

Hycon Mfg. Co. Pref'd*
Business

plete

Albany

Elec.*

Holly Corp.

be

stimulating forces are in the as¬
cendancy in this country as well
as
in Canada and the principal
countries of Europe outside of the

New York Stock

Diesel

Regular Features

continued decline in

business
money

City

Brown Allen

expansion for the first half of the
year,

Philadelphia &

may

due

cline

to

Lake

Consol.

PREFERRED STOCKS

'

Salt

18

_.

33

Indications

There

Teletype: NY 1-4643

Direct wires

Self-IIelp (Boxed)

vs.

FINANCIAL

TELEPHONE HAnover 2-4300

Broadway, New York 4

DIgby 4-4970

25

Possible Mid-Year Pause

Spencer Trask & Co.
BROAD

16

Protectionism

REctor

25

J. F. REILLY&C0.
42

Building Volume Reaching Peak, Is View of Wallace Moir

25

Members

12

President Eisenhower Presents $101 Billion Road

.

specialized in

11

16

The COMMERCIAL and

have

the Stock Market

on

1955".

Street,

-

14

From
A

j

10 1

10

in the first six months.

1955.

For many years we

Holly Corp.
,

*

(Boxed)

and

More

since 1946, and this
will
continue
in

(5) Federal stockpiling will ex¬
pand. According to the President's

Kenmore

8,

23

because of the huge pent-up
demand for capital facilities.

"Iron
the

Cinerama Productions

1955

thorities

(1)

•

22

8

Midland Bank of London

trend

slackness

the economy are:

Canby Balderston__ 21

Industry—Ralph H. Demmler

*

Chesapeake Industries

20

Fulbright Stock Market Hearings Start March 3

busi¬

upward trend.
Other

Inflation—Alvin H. Hansen

Institute of Investment Banking Seminars to Begin April 4__

(4) State and local purchases of
goods and services have shown a

steady

YORK

4-6551

Histories

(Boxed)

Wilson

So!

Yale

spending may be considered
sustaining influence.

upward

WHitehall

10

jGerald M. Loeb in Colloquy

be less than expected
show a rise in the course

and may

as

analysis of the chief factors

An

Case

Dept.

STREET, NEW

Telephone:

may

of this year. In consequence,
ness

Two

WALL

Sabre Uranium
Even

have been indications that the de¬

year.

set

you own

take home!

to

Obsolete Securities

there

124% of the 1947-49 average, went
up

our net

Lisbon Uranium

Hear!

William

below those of last

Recently,

year.

Stock:

of

McCuen

*

equipment for 1955

about 4%

were

Selection

and

Melvin

SEC and the Mining

Hear!

.

(3) Estimates made in the latter

for plant and

For cash

9

;

part of 1954 of business spending

after

Dump all that

99

The Financial Future of Atomic Energy
—Newton I. Steers, Jr

net

(2)

in the Federal

leveling

a

year.

running at a record pace and
likely show a moderate in¬
over 1954, running from $5
billion to $10 billion.

Reserve index
which

The

crease

reflected

was

4

Cryan

will

upturn.

Cobleigh

Economic Growth Without Inflation—C.

is

condit ions.

The

M.

Economic Growth and

that total

so

Consumer spending, which
constitutes
the
most
important
factor in gross national product,

aided

as,

cause

construction work will show

and

activity,
,

building,

U.

dragging

junk—so get

Merchants, Advertising and Telephoning—Roger W. Babson— 13

slump in home building. It is
expected that any decline in home
building will be more than offset
by the increase in state and local
government construction and in
commercial

construct i

—C.

a

by steady
gains in steel

Market—Ira

Economy: A Look Back and Ahead

Diversification

be im¬
action will

vigor¬

and

Rock

Nation's

—Frank

use

spear¬

n

3

7

The

security.

drastic

Nation—Nicholas E. Peterson

We're

6

may

no

the

t

DRAGNET

Transportation—Selig Altschul___Cover

"American Business: Unlimited"—R. Perry Shorts

a

upturn
c

to

economic

but

of the

Capitalism and Militarism—William H. Feterson

was

automobile

produ

Rocking

eco¬

measures

restrictive

headed by the

sharp

government

on

turned

The advance

pace.

pressure

State

For

Discusses role of government

fiscal policies to provide

and

monetary
Business

political

is

progress

AND COMPANY

Cover

/

equit¬

a more

and concludes greatest threat to

our economy,

Riter, 3rd

New Dimensions in Air

The

in

economic

Page

Business Outlook Good, But Some Roadblocks Exist

Boston banker cites factors

ing influence

3

Liberty 2-6190

10, MASS.
A. T. & T.

Teletype BS 596

4

The Commercial and Financial Chronicle

(916)

producing
world.

Rocking the Rock Market

terrains

But

the

in

that's

entire

all.

not

The

tain

geologic structures that con¬
gold also contain uranium

ore.

Produced

same

By IRA U. COBLEIGII

Enterprise Economist

product

usually

from

gold-tailings,

of this

effect

that

on

unique, sparkling, and carat-laden monopoly,

De Beers Consolidated Mines,
For
at

millions

of

arrived

time

has

there

men

special
romantic occasion, when each has
been under pressure to produce a
some

a

man

dia¬

mond under

such

pressure

as

1,5 0 0,0 0 0
(per
square
inch).
And jewel
thieves,
ab¬
sconding with
"h o t
rocks,"
pounds

them
as

for
syn¬
diamonds—5,000
degrees

thetic

Fahrenheit!
have

splendidly

65

some

into

molten

would

into diamonds

but

—

no

in

Then,

rapid

a

carbon

the

dice, and
1901,

a

Scotsman named Hannay tried to

carbons

lock

into

special super¬
heated tubes containing lithium,
I believe, but the few stones he
produced as a result, although
resembling diamonds, were never
accepted as the real thing.
The

General

current

Electric

product,
however,
is
genuine.
Only a diamond can cut a dia¬
mond—and
ones

all

well

Electric

cut diamonds; and meet
standard tests, as

can

the

General

the

other

natural

as

The

ones.

great

drawback of the laboratory stones

is size—about one-sixteenth of

an

inch, with clusters weighing onequarter of a carat — hardly big
enough for an engagement ring
for a ravishing midgetess!
As
is

matter of fact

a

no

attempt

presently being

made to

pro¬

diamonds

jewelry

store
carat

duce

of

sizes; but
variety is

the one-quarter
widely used in many
industrial processes, and depend¬
ing on quality, a batch of them
worth somewhere around

are

500

pound.

a

trial

$6,-

These small indus¬

diamonds

into

up

used

or

they

as

in oil

are

drills, dentist drills and
various
grinding wheels in the
machine tool industry for turning
out cogs, gears and pinions.
now

the

natural

this American

stones

market

to

Up to
serve

have

imported from Africa, and

been

about

$55 million was laid out for them
last year.
(The dollar value of
the jewel diamond

import is

con¬

siderably larger.)
This

brings

economic
man

-

us

up

questions.

made

that

the

up

under¬

rock.

traditional

the

Taking

the second question, the world
apparently yet been

up

market hasn't
affected

much, but the shares of
and distrib¬
did have quite
a
gyration

the biggest producer
utor

the

when
made

announcement

Feb.

on

15

advanced 3

Electric
This
market

deserves

inspection
market

not exactly
really is not a

all—it's

at

had

we

further

it's
It

air tight in

this country, every

last Congress¬
man
would probably be investi¬
gating it! Let's see how it works.
There

three major diamond
Africa — Premier

are

in

mines

South

Ltd.,
Mines,

Con¬
Ltd.,

Mining Co.,
Diamond

and De Beers Consolidated Mines

Ltd.

(which

the first two).

owns

etc., and has
research

and

stands

around

that valuation

in

pany,

brick

a

It

lift

manuals

oil and

the
A

weeks

months
A

sheets,

demand

reports,
chart for

not

has

those

sheets

items

has

These

are

dis¬

of

end

Industrial

Distributors Ltd., purveyor of in¬
dustrial stones to the world; Dia¬

and

from

Trading

cates

the

to

globe the

Corp., which allo¬

four

corners

the

of

consideration

some

this

of

empire.
You
an investor by pur¬
Beers
Consolidated

sizes; and Diamond
Corporation, which buys diamonds

may

from just about all the other pro¬
ducers anywhere. Thus with sup¬

ply under control, sales prices can
be, and have been quite rigidly

$16%
last

maintained

is

tradition

in

of

the best

book

text

monopoly. If, in a
particular year, sales were very
slow, production was stopped al¬
together. (This happened for three
years

a

in the depressed (30s.)

From

the above, you can see what might

enter

chasing

De

sell

now

rent

rate

policy has

roughly 50%
the

ultra

value of
too

be

in

volume.

fabulously

a

enterprise and it would

folly

to

that

say

the

tech¬

seriously jeopardized this rich

and

resourceful

Beers

has

more

one

string

to its bow.

De

million in

had

net

Another

at

12/31/53

current

facet

in

$60

assets.

the

De Beers empire is its ownership
De
Beers
Investment Trust,

Ltd., containing a choice portfolio
of loans (mostly convertible into
stock) and share holdings in a di¬
versity of African gold produc¬
ing enterprises. For example, of
the major gold mining companies
in
the
Orange Free State and
South Africa, De Beers has a sig¬

in

are

one

all

of the

interest

in

gold

LAMB0RN & CO., Inc.
99

WALL

a

little

hard

going

to

concern

to

sis.

major

a

foreign

Lamp

Asiatic

Works,

and

East

Corp., have been attract¬

American
from

an

STREET

investors.

De

primarily

as

dia¬

a

mond producer and merchandiser

(its

1954

about

diamond

$167

pound).

million—at

the

$2.70
syn¬

thetic stone production may create
real

a

competitive

some

point,

other

profit-prone

Beers

are

so

facets

,

at

many

to

the

that

about

perhaps

the

!*
record

'Jl;

total

for

the

"

1

week

is

174,954
be

n

high for

cais,

pas¬

•

'•

according

4.1%

above last

..

-

Output at last week's rate, if maintained,1'wohld give an an¬
nual production of more than
9,000,000 passengef cars." The inf
diistry, however, traditionally slows down in the summer and
pauses for model change-overs in the fall.
Last year, 5,509,550
cars rolled off
assembly lines. The record year was 1950, when
6,665,863 were built.

Meanwhile, the industry is preparing to raise its sights.
as

and truck volume of
truck

producers step

Combined
will

total

A

200,000 a week may be attained in March
output after model change-overs.

up

production

week

a

ago,

according

to

"Ward's"

190,010 vehicles.

Truck production last week was estimated at
15,056, compared
with 23,023 during the similar week
last year. Truck, completions

kept down by model change-overs at Chevrolet

were

General Motors

Passenger

Corporation truck
car

past week,
attain

and

at

the

and coach division.

production,

however, was close to capacity.
scheduled to produce
nearly 86,000 units the
a new peak.
Ford Motor Company was expected to

General Motors

a new

was

postwar record of
a

new

more

high of 34,000

than 44,000 cars, and
Chrysler

cars.

The record production
rate, an industry spokesman said re¬
flects merely an attempt to build
up inventories for the expected
spring rush of car purchases and not in
any sense a
race.

production

1

•
,

Although the producers usually hold back on
precise sales
figures, General Motors a week ago reported retail
sales for
1955 through Feb. 10 at
361,008 cars, or 22.5% above the

we

287,440 set in the corresponding period of 1951.

previous

New business

too

worry

rocking

a

.

record of

organization,

not

much

there

problem

"

)

production of 168,059. In the corresponding week
113,659 cars were assembled.
lit U
i-

last year

were

However, whereas

industry looked for

Automotive Reports." That would

Corporation

sales

,f-..

production the past week.

estimated

to "Ward's

Beers,

earnings standpoint, must

be considered

general industrial recovery and

week's record

corporation

which, like Royal Dutch, Unilever,

automobile

The

car

Here in De Beers, then, we have

from

come

,

senger car

balance

share would not be

a

difficult

9.

fine gold producers
most fabulous

$35

a

will

industry, concludes this trade journal.

The

out
of

ing the attention and interest of

brilliant

of

financial

are

but

Philips

Beers

pay

Because

justify by quite
rudimentary techniques of analy¬

De

company.

than

to

net.

conservative

values

analyze,

nological advance above outlined
has

been

of

sheet valuations and the labyrin¬
thine intercompany relationships,

en¬

is

$19

as

The annual dividend
$1.30 indicating a cur¬
yield of about 7.6%. Corpo¬

But

market

Beers

with

around

at

high

as

recent

put on scrap exports by the
Department the brakes can't be loo tight in View of '
and Defense Department commitments to our
allies.r The
final arguments will rest with State and Commerce
rather than

year).

book

trenched

sold

In

but

State

around

hit
De

New York

in

(they

happen to De Beers, if synthetic
diamonds (uncontrolled by them)
the

as

sheets,

Commerce

Mines Ltd. deferred shares which

gem

terneplate.

expanded

cold

on

additional restrictions may be

some

industrial

eminent

mostly

cold rolled

Heavy demand from Britain, West Germany and other na¬
tions for America scrap is
worrying government officials and do¬
mestic steel people.
Both fear a runaway scrap market. . While

event should you let

no

on

Export demand will be heavy this summer and
backlog will be somewhat larger than at present. Another

mill

corporate complexity dissuade you

mond

But in

was

was

expansion.

marketing

and

the business.

the

at

rock

market.

incorporations rose sharply in January to reach
high point at 13,181, reports Dun & Bradstreet
slightly above the hitherto record
monthly totai
of 13,006 recorded in
January 1946. Last month's count at 13 181

a

all-time

new

Inc.

This

was

represented

NEW YORK 5, N. Y.

crease

of

January

a

rise

38.1%

as

of

10.0%

over

December's

compared with 9,543

1954.

11,981, and

an

in¬

carporate formations in
-

.

(Special to The Financial Chronicle)

Trading Markets Maintained

CHICAGO,

SUGAR

111.

—

Alexander

Steel

J.

Irwin has become associated with
request

Raw
*

—

Refined

—

Liquid

Exports—Imports—Futures

Straus, Blosser & McDowell, 135
South
of

La

the

Stock

Broadway, New York City 4, N. Y,




emphasis

be extensive.

cushion for steel

tributing

operate

a

Straus, Blosser Adds

Telephone DIgby 4-0860

higher, observes "The Iron Age."

or

market

galvanized

for

what.

which

These

L.D. FRIEDMAN & CO. Inc.

95%

ago

much

come

tions

Producing Quicksilver Mine

on

by current recovery business but
expected to reach mills soon from

are

month ago the stress

yourself, to outline just which
companies
own
how
much
of

make

capacity with
sign of hesitation

along with
heavier demand for plates,
bars, semi-fin¬
ished (for export), oil
country goods, farm products and linepipe.
Those who had looked for a significant
let-down in the third
quarter are now changing their sights, declares this tirade au¬
thority. Less steel will be bought by auto makers then but the
changeover period will be shorter because model changes will
that

latest

and

no

makers, construction projects, carmakers, rail¬
companies and stampers. This upsurge may

and

perhaps

exceeds

was

gas

ingot rate to
few

enameling

lime

companies.

be impossible, in so
piece, to outline the rather
complicated inter-company hold¬
ing structure and if this enterprise
intrigues you, you should refer to
the

implement

rolled sheets.

a

should

52

farm

would

brief

there

Most steel plants are taxed

com¬

a

business

And

this trade paper.

says

additional seasonal orders

holdings of De

company,

up

not overloaded with stock.

are

at

roads,

company and two coal

setting

product managers within steel companies are compet¬
ing with each other for available steel and scheduling becomes
more
difficult each week.
As the ingot rates moves
toward
capacity operations the situation will become acute. Consumers

seem

engineering

an

already

Steel

Beers Industrial Corp. include in¬
terests

steel

new

producers

some

rolling schedules.

strong flow of bookings. This is the picture before a sea¬
bulge in steel orders reaches mills in March—usually a

peak month,

ultra conservative.

Other important

with

steel firms this week.

sonal

million but present
and future growth po¬

tential make

of

in the

$25

earnings

products

volume

many

to

books

the

on

steel

The

the

staff

most

third quarter flatrolled steel

into atomics and nucleonics.

move

De

Report

to

and

De Beers has three other corpora¬

(1) Can the

Bonanza Oil & Mine

industries

The investment in African Chem¬

monopoly,

a
as

one

facilities

on

,

It shares 50-50
with Imperial Chemical Industries
Ltd.
(the duPont of Great Brit¬
ain), the ownership of African
Chemical
and
Explosives, Ltd.,
which turns out chemicals, fer¬

icals

diamond

little

a

since

what it sounds.

was

General

points.

world

so-called

if

and

—

periodended

the

September, 1953, hit the steel
industry this week, according to "The Iron Age," national metalworking weekly. In 1953 the trend was downward—this week
it was strongly upward.
Extended deliveries now have spread

way.

tilizers, paints,

in

The tightest steel market since

uranium,

and

other

big

production

a slight tapering off from the
previous week, but compared with the like week a year
ago it was about 5% greater.

Indus¬
Corporation Ltd., penetrates
of

industrial

Wednesday of last week showed

but that's not all. There's more. An¬

bunch

J)

Aggregate

other subsidiary, De Beers
trial

Industry

level of

gold

in

Index

X.

production
vista of

We've talked about De Beers in

diamonds,

Price

Auto Production

Business Failures

new

major interest.

a

in quite a

the price to equal or even

Energy

to the gold mining
companies in which De Beers has

ment

cut

uranium

whole

a

from

advances
Atomic

Trade

Commodity Price Index
Food

and

profitability

a

nificant

compete

pressure

has been proven, refine¬
of it may well bring down

to the basic

diamonds

sell

sort; but
and heat

This

opens

process

either ground

are

powder

An¬

model

now

solidated

that

E.

above the African

Diamond

a

G.

the

well

chunk

turn

diamonds!

make

ment

seething caldron

dashed

a

iron, yanked it out in

thinking

hurry

cool-off

world market for diamonds?

Back

,

Frenchman named

a

Moisson

of carbon

effort.

of

years

1890

Henry

no

synthetic dia¬
triumph of

is the crowning

around

a

agented

press

Electric

General
mond

a

and

rock market.

the

The

and

headlines,

the

copped

rocked

made diamonds

Man

(2) Are they likely to have
depressing effect on the presenjt

hot

as

temperature

oven

of

toted

never

U. Cobleigb

Ira

wise?

ently production costs at the mo¬

pro¬

a

any

variety, price-

by

Retail

State of Trade

mineral has been

Africa's

Board.

natural

all

in

duced

the

swering the first question, appar¬

history,
until
last week, has
any

South

But

diamond.
never

with

accelerated

Limited.

Output

p"r Carloadings

ura¬

tive

Production

Electric
'

nium is becoming an increasingly
important earner—and production
awesome

Steel

The

by¬

a

as

An investor's eye view

of synthetic diamonds, their compara¬
quality, their competitive position, and their possible

Thursday, February 24, 1955

...

Etfgby 4-2727

viously
Weeks.

Salle

New

Street,

York

and

Exchanges.^ He
with
<■

members
Midwest
was

pre¬

Hornblower

&

Output Scheduled to Show Further
Expansion This Week

A healthful

kind
the

of

pickup is taking place in steel demand.
product—not the .volume—that's

weekly magazine of metalworking.

♦

important,
'' '»

says

It's the

"Steel"

Until now, the bulk of the
in _the lights flat-rolled

been

increase in demand for steel
has
forms, such as cold-rolled carbon

Continued

on

page

29

Volume 151

Number 5406

.The Commercial and Financial Chronicle

.

.

7

A

•vii

.ill.

(

7?
r.

'

X

"*

7

■

:

,

,

,

>>
"7

.

rate

COM IN G

7

,

fiu

M'

'

/

r",

/

'M .7

'

5

(917)

,

r? >"/

it {
* 7

*

^

*

7

>

,r

,

i

a

of rise between'~Sept. 1, 1953 and Jan. 2; 1955 ox at

'

L,

V

A"

•

the

rate

of rise between

Nov., 1, 1954

Jan.

and

1955,

1,

"

what

EVENTS
In

f

i

Investment

A.

(Philadelphia, Pa.)

self-imposed discipline

of

Philadelphia

Feb. 28, 1955

Banking and Currency Committee in its
study of stock market prices, its Chairman, Senator Fulbright,
has sent a questionnaire to "selected experts and
participants in
the

Municipal Bond Club of Phila¬
at

the

Stock

Market."

Union

We

quiry.

11, 1955

New York

Q.

rise

(Pittsburgh,

expected

rise

dividend

value of one's

sufficient

to

receipts

at

capital plus

amortize

the

rate

a

an

the

spring meeting

Shamlrock Hotel

I

strongly object to

your

of

over

a

Dealers

(New York City)
Security Traders Association of

close

much

in

the

Q.
Federation

of

(2) Why

Societies
Commodore.

A. There

the

at

of

(White

Sulphur

re¬

to

has been

never

short-term

a

meeting

market

of

Board

a

recent

The factors

of

'

(New York City)

handed

Joins F. S.

Carr

Salle

has

highway financ-

the

;

Had

enclosed

Annual

tions" in

1955

at

(Maekinae

the market fallen instead of risen

in

the

Moseley & Co., 135 South La
Street.
He
was
formerly

Salle Street, members

Stock

Is¬

A.

meeting of Board of Gov¬

While

are

of

Stock

t

•

situation

differences

worth much

between

more

attitude—if

Exchange.

A.

not

there

any

•

changed to

similarities

that

which

at,. Holly «*-r

v

•

ip

-,

A.

offices

two

Eras

of

course

l

l

Leslie L. JSlinkel

at

.

\

Kennedy Bldg.,

General offices at 633-646

to

*

to

all properties

on

(b)

in

^P-kYOKE, Colo.

—

Q'

r*

of the

areas

the rate

securities?

held

\

*\*.

Leslie L.

business.




.

-

:«■

^

.

opened offices at 118

securities

Royalty Co.

by

stock

or

of

the

formerly

interests
<•

.

PETROLEUM
;

market

prices

between

..

Royalties Co.

DANUBE Oil Co.-.:

exchange for, stock certificates bearing the
new name will be made upon request jand

the harm ensuing from the

other interference with

a

free

exchange of presently held stock certifi¬
or debentures is
involved. However,

cates

danger to the national economy?

No danger commensurate with

50%

,

.

iSejpti 1, 1953 and Jan. 1, 1955 should continue for another
year, would there be any

formerly owned by

Production Co.

Including

■

market.

increase in

of

Corporation

FIDELITY

inherent in the
present market activity or
economy

without

secur¬

agent:

transfer
The Corporation Trust Company.
charge by the company's

J.

R.

MANNS

Secretary

©f "nothing wrong,"

tokla n

the rate of increase in stock market prices between

Upens

South Interocean Avenue to

unchanged.

Oil

Royalty Corp.

is supported by the fact that, as
above, the price distortion and undue activity have

limited

Toklan

TOKLAN

■

*

the

in

rests

\validation of present
price levels, and thus itself unwittingly enhd^cfe distortion.

en¬

,

now

TOKLAN

whole; midst an intensified
fever—by both professionals

that if this very Study-results in a
findihg
this may be taken as official authoritative

2350

.(Special tothiFinancialchhqthcle)

Kunkel has

15, 1955,

Royalty Corporation
:
..*'7:

pre¬

This conclusion assumes absence of credit expansion
and, under government regulation and FRB watchfulness, of other
unforeseeable abuses.
Incidentally,' it ts * respectfully suggested

securities business.

V

asso¬

in

ities market.
f

Broadway, New York City, to

1

become

Street.

OIL

between

prevailed

This negative reply

No.

(5) If
r

.

Investors Alliance, Inc. has been

a

Toklan

was

of

No

Form Inv. Alliance

duct

of

name

(Hollywood,

Convention

I

Sixth

By charter amendment, Feb.

the

amount of credit

demonstrated

Q.

jBeacb Hotel.

1*

the

actual

dangers

imposition of price control

I

than

present market levels,

occurred

Investment Bankers Association

with

has

with Oscar F. Kraft & Co.,

West

enclosed

1

(4) Are

Exchange

Florida) ,!

a

and

now

(c)

<,

Nov: 27-Dec;" 2, 1955

gage,in

Allingham

ciated
530

*

significant

(a)

Firms meeting of Board of Gov- "

formed

*

are

public.

(New York, N. Y.)

Association

wood

there

*

Q.

annual

LOS ANGELES, Calif.—William
H.

Title

and

of Stock,. Exchange
meeting of Board of Gov¬

ernors*

market

speculative

(Denver, Colo.)

ernors.

*

Exchanges.
with Miller,

With Oscar Kraft

Tulsa, Okla. Personnel remains

parts

1955

Stock

previously

(Special to The Financial Chronicle)

ing of foibles by the market community—as the credo that "good
stocks are cheap at any price" (I call it Blue
Chip-itis); gross
misconception about the stock-split,, in assuming that-the two

(Chicago, 111.) r

Association

-

Midwest
was

1928-29?

ernors.

Nov. 16-18

think

you

the

.

Investment Bankers. Association

Firms

of the Mid¬

the

Nov. 1,-1954 and Jan. 1,-1955 should continue for another
year, would ther'e be airy, danger'to the notional economy?
Answer
..

.

same as
..

.

.

J«MS—Oklahoma — Kansas —

OIL

to Question 5.
'

*

*

.

(ENNEDY

*-

Louisiana—Arkansas—New Mexico

CORPORATION
BLDG.— TULSA, OKLAHOMA
;

con-»V-UQIf.you^betiePe there
•

-

economy

in

a

t<\the

would be any danger
national
continuation of the stock market rise at the

<■

i

M

U

I»/

*M

-

-

7.V

t

*

■I

H-

L.

Price, 231 South La Salle
Street, members of the New York

dominate, there is definite similarily in the widespread embrac¬

Sept. 21-23,

Alfred

(which supplied both the bullish and bearish "explana¬
advance).
*
*
'

(3) Do

National Security Traders Asso¬
ciation annual convention.

Fall

—

Spink & Co.

Webber-Simpson

ber-Simpson & Co., 208 South La

west

ILL.

Hicks &

and

your

last month

,

Ful¬

Shorr has become connected with

with

CHICAGO, 111.—John R. Agamy

queries,
differing, if not

*

Q.

land, Mich.)

Sept. 16-17

SENATOR

(Special to The Financial Chronicle)

CHICAGO,

William F.

—

1954, this would have likewise been completely "explained" by
citation of .a complete set of
bearishfactors—-per my Exhibit C

Country Club
Club, Rye, N. Y.

Sept.. 11-14,

taxpayers,

Now With Hicks & Price

with Northern Trust Company.

B details a large number of factors ranging
confidence-in-capitalism to good corporate profits

Westchester

and Beach

and

move¬

has likewise applied

(Exhibit

(New York City). A,;
Club of New *

Outing

com¬

statement, I realize—but undeniably true.

associated

become

value of the institutionally-popular issues, all
of which have been long present.)•
,7t' •
^

Bond

22nd

The

(Exhibit D shows with detailed

Veterans

to

,,<

.York

hereto.

Moseley

CHICAGO, 111.

to scarcity

Municipal Forum of New York V

Municipal

the

the First World War, in the

(Special to The Financial Chronicle)

commonly cited

periods mentioned in

conditions.

business

Such non-correlation

"business."

An inconoclastic

logical explanation for the timing

movement.

with

bright.)

in the last month of

all been present midst completely
actually opposite, market behavior—per my Exhibit B

from

June 10, 1955

general

has,

there

I,

herewith.

Governors.1

on

and

attached

"D"

bonuses

*

up

what

correlation between stock

no

He

have nearly

Springs)

conference

War

has become connected with Web¬

Investment Bankers Association

June 8, 1955

Exhibit

F. S.

the rate of rise stepped

was

for the rise in the two

Spring'

World

of

whose

1954?

Finan¬

Analysts

1955

onset

(Special to The Financial Chronicle)

May 8-10,1955 (New York City)

May 18n21,

the

fluctuations

ments and

Waldorf Astoria.

Hotel

stock

supporting data the lack of correlation between stock price

[underscoring
Exhibit A attached, showing

*

To

market?'

With

*

conditions?

business

general

lower, than their 1946 high.)

New York annual Dinner at the

■

1920's, in the mid-'30's, from 1946-'47, and since 1950, is detailed

issue sold much higher and another issue

one

*

$

relevant business phenomena during

(Exhibit A cites 15 industries in each of which at their
1954

this broad

on

subsequent column.)

a

changes in

Since

market

stock market rise"—cf. my
the continuing intra-market divergence.

Apr. 29, 1955

cial

with elaboration

plete divergence between stock price movements and supposedly

illogi-

annual

term

.

•

this question,

to

epochal exception of 1929-'32, been

of the term "the

use

mine]

Apr. 28-29, 1955 (St. Louis, Mo.)

National

reply

markets

changes in general business conditions influence

A.

period,

embodying

amount

investment

security

the

quan-iin

Also, per continuing special on-the-spot studies by this writer,
American equities have consistently been
cheaper, on value cri¬
teria, in the U. S. than abroad.

(Houston, Tex.)

Texas Group Investment Bank¬

Municipal
Group annual outing.

the

a

University of Pennsylvania.

Louis

for

length is adjusted to the estimated degree of risk; and still leave
share of the equity
accruing to the owner.
Thus common
stocks generally afford a better value than real estate.

Institute of Investment Banking

St.

"explanations,"

qualitative,

From the long-term view, it was justified

long-term

rental

pure

April 4-8, 1955 (Philadelphia, Pa.)

Association

over-the-counter

If so, explain and suggest how this can

extent do

real value; demonstrable by the
general avail¬
ability of issues at prices at which it is possible to capitalize the

serve

at the

available

and

this, as any, particular
stemmed from psychological forces
cally and unpredictably.

May

ernors.

ers

and

inadequate?

about

by its framework of

Exchange

Firms meeting of Board of Gov¬

April 24-27, 1955

The

during

.

Stock

*

*

Q. (9) To what extent do fluctuations in the stock market bring

the

were

—

A. Wilfred

of

of in¬

period about which you inquire merely typify
the habitually popular rationalization of
the
market's short-term fluctuations. Actually, the

Edward Hotel.

Association

corporate managements'

stock-split.

be corrected.

(My

prin¬
cipal factors causing the stock market
rise beginning in the fall
of 1953?
>'

A.

March 11, 1955 (Toronto, Canada)
Toronto Bon<P Traders Associa¬
tion Annual Dinner at the
King

1955

the

evidence that present government regulation

any

exchange

matter, will be given in

What in your opinion

titative

sociation 29th Annual Dinner at
the Biltmore Hotel.

at

(1)

(New York, N. Y.)

23-25,
Pa*)

the

are

-

Waverly

Security Dealers As¬

March

media, and curb
via

*

Investment Bankers Association

Mar.

of

reproduce Our

tions about the limitations of this
type

Security Traders Association of
Connecticut
and
Connecticut
meeting at the
Inn, Cheshire, Conn.

various

excesses

Q. (8) Is there

replies sent in, as sum¬
marizing our conclusions concerning the mar¬
ket rise inquired
about, as well as our convic¬

March 2, 1955 (Connecticut)

joint

to

To assist the Senate

(Philadelphia, Pa.)

delphia luncheon
League.

via

and

incitation

encourage

exploitation via "tipping" of various

over

*

dinner

annual

the Benjamin Franklin Hotel.

at

kinds

TO SENATOR FULBRIGHT

Investment Traders Association

suggestions for avoiding- this danger?

your

Irrespective of the degree of "danger," I would

Field

By A. WILFRED MAY
Feb. 25, 1955

are

; 'Ji

."

IV*-OVA

i
v

•t

-V

-1

'■»

6

The Commercial and Financial Chronicle

(918)

War
involvement
proceeded
rapidly.
Congress
repealed
the
neutrality laws, and Britain and
France
were
permitted
to
buy

Capitalism and Militarism
PETERSON*

By WILLIAM II.

arms

Economics

Professor of

Associate

the President handed

York University

New

scription, sugar-coated

undertaken

lective

by the nation's foreign policy is strategically feasible and eco¬
nomically possible, Dr. Peterson finds war is unproductive
of the ends sought. Lists as forces, which, though not seek¬

has

bound

homeland,

own

icy

of

an

the

mil¬

as

one

and

half

have

called

for

in

bases

on

49

the

that

as

and

continent.

every

air

world

such

vast

61% of the

obligations

stra¬

tegically feasible and economically
possible?

Tonight,

as

meet, American

we

S.

U.

ot

of

in

Yet

war

three times:
Radford

(1) when Ad¬

recommended

which

partisanship,
taking sides.

in

as

name." 2

In

January

of

1916

Wilson

airmen.

new

be

beyond

just

Pearl

the

Ko-

an

age

of

the

sands

The

North

of

Africa, the mountains of Italy, the
fields of Normandy, the valleys of
Rhine

the

and

Ruhr, the jungles
of the South Pacific, and the rice
paddies

of

spilled in
fered

Korea.

Blood

these efforts.

was

suf¬

We

360,000 casualties in World
I, more than a million cas¬

War

ualties in World War II, and 130.000 casualties in Korea.
We left

25,000 of

our

Military
come

The

a

battle dead in Korea.

intervention

permanent

President has

public
asked

years' extension of the
a

has

be¬

policy.

for four

draft

and

10-year modified universal mil¬

itary
also

training
asked

for

a

has

He

program.

continuation

of

the foreign economic and military
program, as well as authority
to impose stand-by controls on the
an

emergency.

taled

about

In

billion

a

the

years

dollars

after

a

World

War II, defense spending averaged
about 15 billion annually.
In the
years

after Korea, defense spend¬

ing has risen to between 35 and

'An

In short, de¬
spending, exclusive of war,

by Dr. Peterson
llie Ad-Sell League, Omaha, Neb.
cle

the

World,"

U.

S.

News

2/12/54.




and

June,

of

the

tancy

1941—Hitler

Lease

ordered

was

Russia.

Lend-

shipped

to

Senator

Taft

objected

the

four

freedoms

telligence, was a

"To

in spite of his efforts, we had
World War II, and he re¬
canted his isolationalism in a speech that has
become almost as historical as Washington's

try

involved in

and

ability

will ship

we

But

guns

the

Russian

became

arising

another and younger man with

I

nationalism.

these days and

has

in

meaning

no

voice in favor

But he is steadily lifting his

times.

smeared

He will be

had.

the term

really

when

"isolationist"

an

He will have the same

Knowland.

Vandenberg

that

travel

to

row

of

referring to the Senate Republican

am

Senator William F.

leader,

ability and energy, is

place as a foremost spokesman

former

his

take

to

American

as

the hearts of his

editor fellow countrymen.

Eastern

hard

apply the same

given to isolationism to in¬
the originator, of the United Na¬

he was forever sealed in

on

10

coun¬

no

responsible for the
present war and Germany's ag¬
gression than Russia itself. Except
more

was

he

and

there

From

Bargeron

he had

which

energy

ternationalism
tions.

Carlisle

Having recanted, he set out to

Farewell Address.

Now,

spread

of the abuse he had taken.-'

Anyway,

become

strongly:
throughout the world

practical man and he

very

become tired

had

fight

of

foreign aid, in fact, seemingly in all

"he

1917

of

could

the

bring American

U.

In April

declared

S.

war

Germany and Austria "to make
safe

for
democracy"
without victory."

"peace

We got neither.

victory without

and

we

got

world

a

We got
Conscription.

depressions.

culture,
panded
The

Government

agri¬

Greatly

ex¬

for the Executive.

had

been

The

Lenin

Socialis¬

industry,

labor.

power

delusion.
but

over

and

war

a

Kaiser

had

taken

and

snare
was

his

gone

place.

Wilson stumped an unsympathetic

nation

to

of

get

us

Then

much

as

Germany.

gressor as

democracy

we

into the League.
the Treaty of

The Senate rejected

Versailles.

Russia

of

a

war

we

would

never

pay

clouds

cruel

price

again.

When

appeared in Europe
'30s, Congress over¬
whelmingly passed acts of neu¬
trality.
Citizens were prohibited

during

the

ag¬

an

In the

name

to make

are

ruthless dictator in the world.

Eut the

the

victory

has

.

.

than

Fascism.
There
slightest dan¬

of

been

never

dan¬

States

the United

to

gerous

.

more

the

that the people of this country

ger

would

embrace

ever

Nazism.

.

But

successfully

democracy." '

As with all wars,
but

were

The

and

World War II

proved

principles

Charter

of

the

little. The

the

Atlantic
Freedoms

Four

jettisoned during the war.
Morgenthau Plan to reduce

Germany to

rural economy was
announced at Quebec.
Lithuania,

Estonia,

trality.

In

the

a

Latvia,

Northern Korea

Poland,

and

delivered to

were

of

1937

President Roosevelt spoke of "our
national
determination
to
keep
free

from

foreign wars
eign entanglements." 4

and

for¬

from Hitler to de¬
We lib¬

only to de¬

liver most of it to Mao Tse-Tung.

Korea
than

lems

created

we

more

solved.

we

prob¬

Domestic¬

ally, the State expanded and free¬

dental

in

the fall

with

business,

a

the

unneutral

no

sharp downturn in
revealed

attitude

in

his

speech:

ica will escape, that America
may

expect

mercy,

that

this

Western

Hemisphere will not be attacked
that

and

it

will

continue

quilly and peacefully to
the ethics and the arts

tran¬

carry

of

on

civili¬

zation."3

of

productive
why have

ends

the
UN

be

Quoted by Rene A. Wormser,
The
Myth of Good and Bad Nations, Chicago,
p.

93.

3

Ibid.,
Chas.

Policy in
p.

42.
A.
Beard,

propaganda medium for the Communists

a

set

at

Yet we were flattered to death when
San Francisco charter meeting that

the

in this country instead of Geneva or some

up

Knowland's
attack

is

speech

this line.

the

when

describes

seek

lead to

war

but

an

the

Who

are

of

tention

and

and

American

the

Making,

American

Foreign

1932-1940,

Speech, Chicago, Oct. 5, 1937.

1946,

of the futile

But by the time Eisenhower came in

experienced.

the fiasco it

people, to

It

was

mind,

my

were

willing to assess it as

also

is

and to call it quits.

those

who

whose

volved

in

a

conviction

my

that

they

don't

want

to

get

in¬

shooting war in that area again and that Mr. Eisen¬

hower's

serving

keep

turns more

his

ability to

out than anything else.

do

us

if

But

I

a

second

term

understand

correctly

what

upon

Senator

Knowland

is

.

actions

expansion

able

to

think

we

The

politicians

best

serves

own

our

national

interest

and

not

what

supreme

is

the

of

re¬

power.

military

are

that

Undoubtedly,

intervened they expected a victory instead

we

loss of lives we

are

The following

activity are
means to
that end.
Under "pre¬
paredness"
and
"defense"
poli¬
ticians

fiasco but Eisenhower brought

the

what

war:

interest

a

end and there isn't any doubt in my mind

driving at, it is that our foreign policy should be based upon what

Politicians:

(1)

I have not been able to-follow him on

people wanted it brought to an end.

the American

an

Ad¬

his repeated questioning or criticism of the

Admittedly, Korea was

fighting to

than

though,

significant

more

cherished citadel of American internationalists.

the

upon

follows upon

spanned
are

and

their motivations?

other

place.

marshall

the

Britain
thinks.

arising

that light it is

In

on

his part.

ousted from

all what the United Nations

least of

thinks,

in this country.

courage

be

France

or

good to see an able, energetic leader

But to carry on will take considerable

Already there are demands that he should

his leadership in the Senate.

very
essence
of power — armed
forces.
Hence, the frequency of

politicians in uni¬
form, from colonel on up.

new

lands,

new

Continued

peoples,
on

page

the

34

Bell With A. G. Edwards

With American Sees.

Latin-American

(Special to The Financial

BOSTON,
Jr.

has

6 Admiral

Stark's

report

on

Greer

in¬

cident, Congressional Record, 77th Cong.,
1st Session, Vol. 87, Part 8, p. 8314.
7 Human

Events,

March

ously
n r>

28.

1951.

State

53

r)

with

connected

Securities
Street.

with F.
oivor

JACKSONVILLE, 111.—John W.

Mass.—Cyril Wyche,

become

American

(Special to The Financial Chronicle)

Chronicle)

Corporation,

p.

183.
5

insisted

Russians

Political power lies in conquest
2

than

more

the Free World.

against

un¬

What

war.

interventionists

so

sought,

leacWs

our

to find

is

war

the

forces behind war?

War

imagine that Amer¬

one

nothing

as

But the fact is that

this country paying most of the bill,

served, with

has

UN

the
If the crucible of

analysis

1937, coinci¬

President

"Quarantine"
"Let

of

the

behind the Iron Curtain.

got

shrunk.

dom

of collective security.

might be useful as an international forum

He admitted that it

debates

Just how then,

90% of the resources.

asked, can we look to it as an agency

the

.

*

of the manpower in the

the United States supplied 90%

out that

ministration's Asian policy.

not

But

organization Vandenberg Had so

Korean War and more than

if

the Senator
Nations with
much to do. He pointed

challenged the effectiveness of the United

sharply
whose

which, strangely

received little or no attention in the East

/enough,

It

In

t4

speech in San Francisco a few days ago

a

erated E'urope

erated Asia from Toio

fields of international re¬

'

■

the Communists at Yalta. We lib¬

oceans

summer

In

Communism

.

under the guise of
much

or

often

.

masquerades,

cost

Bundism

from

traveling
on
belligerent
ships trading with a warring na¬
tion, or in any way acting in a
manner inimicable
to U. S. neu¬

lations.

time when

a

victory of Communism in

liver most of it to Stalin.
We vowed

such

Ger¬

Communist alliance with the most

fine

controls

Poland.

be

with

pact

the world would be far

Instead

peace

too.

more,

4

World

he

dictator

Massive

support.

vs.

he®'-

no

which

to

as

would

titans

had

could

man

one

any

as

involvement in World War II. But
come and he, richly endowed with in¬
our

to

before

1 "American Defense Commitments Cir¬

It -port,

in

battle

it

ably

as.,

against

proved

when

opinion to that point." 3

1954,

address

began

the

knowledge. He had simply decided to become
internationalist.
He had fought, as bard

an

national atmosphere

<5 billion annually.
fense

long before Pearl Harbor.6

sea

When

additional mental capacity, any additional

any

tariff, in the matter

an

Before our program of global
intervention in World War II, an¬
nual expenditures for defense to¬

year.

at

ignorant of it,
with Germany

were

warring

were

Amer¬

American propa¬

on

he 'became a great statesman
He hadn't really acquired

overnight.

our

aid

economy whenever he declares

we

the

commentary

a

that

almost

altogether against it, in the matter of the

seizure of the railroads.

past couple of generations have
witnessed American fighting men
in
action
far
from
American
shores—on

ican .people

IMs

ganda

of American self-interest at a

tic

war.

although

Shooting

so-called isola¬

a

was

,

is

severe

',

We live in

and

started

England.

he

because

was

tionist.

of

war

inflation which contributed to two

immediate

horizon.

to

arms

until about 1945
charac¬

up

vasion

much

may

secretly

B*ut

recognized.

so

many there would have been in¬

would enter the

we

unsafe and undemocratic.

an

New

Harbors

with

This

generally

was

generally belittled in most of tne Eastern press,
as
a
small-minded provincial bore.

terized

and

President

the Navy to convoy Brit¬
and
American
ships loaded

he

was

ish know

air strike in Indo-China; (2) when
Five million in uniform, two mil¬
Red attack was launched
on' lion of whom
were shipped over¬
Quemoy; and (3) when a blockade seas.
Dead and wounded in the
was
urged
to free 11 captured hundreds of thousands.. Debt and

reafc and

The

he

right hand man, Col.
House, to England to let the Brit¬

his

a

and American

the defense of the United

to

States."

death

the United States Senate.

to serve in

ever

thg ablest
At the time of his

Arthur Vandenberg was one of

Senator

late

The
men

for

sent

world

to

of

out

"that

campaigned on the plat¬
form, "He Kept Us Out of War."

for

nearly went

"deems

airplanes ana tanks and

the

miral

he

Stalin—RoosevpR

essen¬

neutrality

well

as

and

we

met

he

to evacuate Chinese Nation¬
alist troops from the Tachen Is¬

way

year

defense

Communist Russia.

fact

1916

on

Last

been,

avoid

would

passionately

carriers patrol the dangerous Formosan
waters.
Steps are under¬

lands.

vital

whose

in

population.!

Are

nation

otherwise dispose

or

defense article" to any

any

.

exchange,

BARGERON

By CARLISLE

President to

to,

The United States must be neutral

Amer¬

of the world's population,
is committed to defend 54% of the
and

ends

our

spring

may

and 6%

area

this

breach

tial

ica, with 7% of the earth's surface

world's land

leadership."
leadership taking

deepest, most subtle, most

SEA-

American

countries

the

"world

Have

out

troops

is

Pax

When World War I broke out in

TO, and BRUTO

of

c e

they

Europe, President Wilson declared

Such

NATO,

i

It

through military intervention?

one-

treaties

Dr. W. H. Peterson

the
say,

us?

billion

people.

Britannica have failed.

applaud

Where

to

purveyor

upon

Romana

is,

p r

itary guardian
or

Pax

Pax

a

Americana.

now

stands

a

where

Interventionists

United

States

lend,

.

ish

Americana

Pax

a

world

and

Ten years lat¬
er

wit¬

.

The.

ordered

the

miles.

square

before

in

of

the

title

transfer

enforce

million

area

pol¬

a

intervention

never

never

passed.

was

empowered

"sell,

by the world.
This • bi¬
partisan policy is our attempt to

of

and

3 Vz

military

this is

nessed

million

145

of

proportions

population

a

law

lease,

The portent of all

would

boys to fight in foreign

our

Lend-Lease

about 40 times in 15

up

he

wars.

years.

defend only its
territories,
and
possessions —

to

shot

that

again

send

Says collective security is an empty dream.
policy of de facto recognition, including Red China.

Day the United States,
her enemies vanquished, was le¬
gally

and

ii

of democ¬

Meanwhile, in the cam¬
paign of 1940, he promised again

peace.

V-J

On

The

came.

"We must be¬

racy."

but whose actions lead to war: (1) politicians; (2)
bureaucrats; (3) socialists; (4) lobbies; and (5) desire of
Advocates

Act,

as

the great arsenal

come

war,

people for

Service

President declared:

Con¬
the Se¬

Thursday, February 24, 1955

.

of the News

ain 50 "overage" destroyers.

Posing tlie question whether the vast obligations

ing

Ahead

to Brit¬

over

.

Washington

a

Without

Administration,

Graduate School of Business

From

"cash-and-carry" basis.
Congressional authority,

on

.

Rt

He

was

S. Moseley
Cr»

previ¬

&

Co.

Bell
A.

has

become

associated

with

G. Edwards & Sons Savings

Loan

Building.

formerly local
mann

&

Mr.

manager

Benjamin.

Bell

&

was

for Uhl-

Volume

181

Number 5406

.

.

The Commercial and Financial Chronicle

.

1

(919)

grandest

"American Business—Unlimited'

tunity
other

By R. PERRY SHORTS*

President,

Second

National

Bank

and

Trust

Company,

undue,restraint of government

and advocates

The

has

an

work

interesting job.

rubs

His daily
against business¬

him

of all sorts and

men

descriptions.

He

*

.

learns

their

and

all

the

of

tricks

their

trades.

They

speak

the
lan¬

same

and

guage

ll\ey

feast

or

busi¬
the

other day
Perry Shorts

who

specified

in

that

will

his

pallbearers should' be
bankers, and when asked for an
explanation - he
replied,
"Well,
these

ing

all

me

have

to

life

and

arid

is

contacts

tragedies

string"
not.

Viewing
in

state

promises-

-

•

recently reed some statistics
so "impressed
me
that
I

which

wrote them

of

are:

down—and here they

people

100/

35

of

years

will be dead at 65; 54
dependent upon others;
will be working for a rpeager
36

age,
will
5

be

saved

ing

goods

law

—

ship in

new

by

not

of

law.

Seattle—and

new

a

healthy prosperity in Michigan
Kansas or Illinois spreads its

beneficent

influence

great country.
tagious—and
all

are

so

and

together

particular

own

over

our

Prosperity is con¬
is depression. We

brothers

working

all

sisters—all

brilliant

very

here.

to

and

business

good

some

in whom

you

him

working

living

All you have to do ii? to

use

then

their

laboring

'have to

men

jobs

customers,

finally their

and

investments too. Corporations need
manual labor all right but they
can't

make

have

they

unless

money

brains to

management

run

them.

in

America

today (who are so
striking
for
higher
wages) would just set aside $85
each, they could buy the controlling interest of the whole New
frequently

*

York

Central

Railroad

and if each would

save

System—
just $100

year for five years, they could
buy the controlling-interest of all
the railroad systems frt>m Chicago
a

the Atlantic

to

Ben Fairless

SeaboardTOr, (as
suggests)-if the 300,-

employees,of the United States

Corporation would just set
aside $15 a week, they could buy
the
controlling- interest
in
the
whole
four

corporation

years'

Right here and
we

have

an

in

less

than

time.

And

think

see

of

of

Growth

for

the

unlimited

for

opportunities
that lie

growth
Some

us.

people

in America,

a

people

mjie; where the workers them-

^e^n'own'atid tfontrol'th'eir
selves can own and. control them

is increas-

amazing rate—and more
business. Fur¬

means more

since World War II,
billion have been in¬

thermore,
over
$110
vested

in

ment.

More

equip¬

and

plants

new

plants

more

mean

d u c t i o n
more jobs, more jobs mean
income, ahd more income

production,
means

more
means

p r o

more

demands

more

for

more

goods, which in turn means still
more production.
Expansion feeds
itself—and

on

pansion

as

can't stop

you

long

as

we

are

ex¬
con¬

all

the

today
to

In fact

products

were

that

fusion

is

market

heard! of

even

And when it

foodstuffs,

know

40%' of

the

on

never

50 years ago.

the

Money used to do all the talking,
now it whispers
reverently in
the;
presence
of
brains.
Henry
Ford
had
a
good idea, but no
money.
He finally induced a few

This is under

no

offer

won't sell at 7 cents a pound, they
change it into puffed rice and sell
it at 61 cents; wheat at 2% cents
becomes puffed wheat at 68

at

corn

lVi

cents

developing

what

for

too,

more

will

men

prosper

babies today

"Beans" later

on

mean

when they

that
and

to

look

are

the

make

coming
new

and

on

jobs
sell

products

new

the

being
them

market

created
—

as

an

from stomach ulcers.

But while considering Amer¬
business today and

ican

its

big Government than in big busi¬
Our Government was set up

ness.

to

us—not

help

to

run

us.

The

successful.

term

is

the f politician

not

duces

nothing)

ment

(which

(who pro¬
the Govern¬

nor

has

resources

no

except the taxes it collects from
you

and

men

of

failure

a

success

profound

danger line begins at age 40.
40 and

tween

meet

men

ufacturing
and

of

50%

of

that

workers

7.

over

must

of

our

8

every

it is of first im¬

so

portance that
keeps
private

great

country

bus.ness

solvent

our

prosperous.

What
And

well

Is
so,

Business?

younger

men

may

ask—just what is American

business

anyway, and why is
it
"tough"- that only 5 in 100 are

so

successful?

Well, American busi¬

is that force which conducts

ness

commerce

tions;

between

provides

164

millions

the

industries

jobs for

our

men

and

na¬

living for our
people; develops

a

of

which

furnish

the

63 millions cf labor¬

ing men; and in the last analysis,
constitutes the powerhouse of our
great American

Republic.

American

prosperity
exists
every industry is working
steadily, producing just the right
amount of its particular products
when

to

meet

other

the

requirements

industries

it for supplies.
est purpose of

and

of

depending

all

upon

And so, the high¬
every

government

since

whole

United

business

and

States.
you

have

created

been

wealth,
jobs.

new

Here, and

and

ment.

is

builds

Enterprise

Private

our

schools

and

our

Continued

on

churches,
page

offering of these securities for sale,

or as an

or as- a solicitation of an offer to buy, any of such securities.
The offer is made only by means of the Prospectus.

right in front of

be to encourage industry
keep it running steadily be-

prise

system

at

its

best—a

com¬

*An

Bean

address

Annual

by

Mr.

Shorts

Convention of

Shippers

Mich., Jan. 28,

the

Association,
1955.




at

the

Michigan
Saginaw,

Dated March

bination of Labor and Capital and
Brains—and through its country¬
wide

operation
spread

people

and

richest

porations
lions of

has

of

become

tne

have

we

strongest

are

our

Tel

ics

but

of

nation

owned

by 6V2

no

Tel

alone

our

one

Price 102%

plus accrued interest

cor¬

mil¬

people. Any man who
$100 can buy cne or
The American

is

owned

1,250,000 stockholders.

attack

1, 1980

on

shares in almost any corpo¬

and

Due March

1, 1955

our

ration in America.

over

1965)

has

millions

Our thousands cf

saved

more

prosperity

over

and

earth.

Copies of the Prospectus may be obtained in any State only from such of the several Un*
derwriters, including the undersigned, as may lawfully offer these securities in such State.

by

Crit¬

capitalistic system,

attacks

living it

the standards

provides

broadest

—

ownership, highest wages, short¬
est hours, lowest prices, greatest
abundance of the good things of
life, and every man free to work

Wertheim & Co.

Blyth & Co., Inc.

Lehman Brothers

The First Boston Corporation

Goldman, Sachs & Co.

when, where and if he chooses. A
way
back
in
ancient
times,
Horace, the wise old philosopher,
said: "If a better system is thine,
impart it; if not, make use of

mine."

This

is

America's

chal¬

Lazard Freres & Co.

Merrill

Carl M.

Lynch, Pierce, Fenner & Beane

Loeb, Rhoades & Co.

Salomon Bros. & Hutzler

lenge to the world today.
How to Pass

And
62nd

(Convertible until February 28,

our

should
and

3%% Subordinated Debentures Due March 1, 1980

is the American Free Enter¬

eyes

the

Company

for

business

tell
can

so,

you

not

Prosperity Around

don't let

that

our

any

politician

laboring

men

share in the prosperity of
Business.
One of our

American

Union Securities Corporation
February 24, 1955

that

cities, bridges
our
rivers, erects our skyscrapers and
our

His idea

new

Bank¬

bankrupt

everybody, including the Govern¬

orlon

Continental Baking

stock¬

benefited

185,000 employees.
new

been

American
you

jobs

otheP

many

have

created

not

employed by private

are

process

holders

years.

7.1

we

the

new

all

Yet

business—and

and

man¬

years—

corporations
don't make a do1-

profit.

forget

7

stores

of

the average

lar

lose their

is

concerns

retail

Nearly
on

and

The average life of

money.

Be¬

50, over 90% of all

reverses

or

influence

every
job, every school,
church and every home in

every

the

me)—but the Business¬

America whose
cast

$13,000,000

capital," and a few good
workmen,--went into partnership,
and they all prospered — and in

The

best friend of the commoh people

buy,

his idea.
Thus, one
brams, other men with

pros¬

pects of tomorrow, we must' never
forget that it is Private Enter¬
prise, and not Government, that
makes our country prosperous—
and that there is more danger in

"risk

we-

with

bigger

and spaghetti, coffee and

suffering

It

the

at

a

postum, oatmeal and grapenuts—
no
wonder the poor bankers are

join the Army.
And

Every food from soup

fighting for

place in our poor old American
stomach—sauerkraut and pickles,

rupt

Bean

is

nuts

to

000 of it

man

corn¬

fight¬

are

ing fowl — and sugar beets are
fighting A1 Riedel's "Jack Rab¬
bit" beans.

And

you

Fish

who had money, to risk $28,to make more money by

men

living; 4 will be comfortably well
off; and only' 1 'will be independ¬
ently rich.
Only 5 in 100 are

cents;

becomes

flakes at 20 cents.

upon

circumstances to he construed

to

con¬

doubly confounding. As
puts it, "If plain rice

the simple formula of thrift, hard
work and old fashioned honesty.
but

men

progressing

God-given brains and follow

your

comes

Bean

you

writer

one

building new plants and
producing new customers at the
rate of 11,000 new babies per day.

stantly

economic system that

beats Socialism and Communism

rubber and DDT.

can

nothing but, gloom and doom

more

now

dacron, vitamins and wonder
drugs, saran and ethyl, synthetic

prunes

Opportunities

ahead

our

their

first

an

one

make's

lose

would

have great

stock in his

some

get

when

So

Steel

living in the

are

honesty.

and

c

Our population

000

Round

We Americans

their high

won

all, but the customers of their corporations—and
if their costs ran up too high, it
wouldn't
be
long
before
they
at

ipg at

his

in

Forces That Make the Wheels
Go

wages,

bosses

way.

our

growth and prosperity of
big American family.

own.

itTvisely. Why do you know, that
if the 1,200,000 railroad employees

the

—

the corporations they want to

ahead—but I just can!t see it that

for

each

—

calling

They

spot

All

New York calls for

warehouse in

Their

poor

'is to

A

a

or

buy

do to share in business prosperity,
save their money and invest

every

produc-

no

once

y°u-

prosperity — nonproducdepression.; You can't
wealth

top.

company

means

increase

our big
(including

were

confidence, buy

every

and

state benefits

grandest countrydon t the face be
on have to of
earth. You

right here, let me give you
tew
figures to show what a
rare
specimen
the
successful
businessman is in any comrrrunity.

the

or

the

And

I

broadly,

Union

every

and

prospects of tomorrow.
<

in

it

by virtually everything that' is
produced, in industry. Production

it

as

Doan)

manager

woolen

a

like

we

of

today

stations thru thrift, hard work and

the other

upon

it

the '

workman

business
to

of

business

its

and

com¬

one

whether

—

equip him

peculiarly

today

bring

touch with the

American

discuss

carry¬

and I'd like
the job."

finish

these

in close

edies

been

life

my

them

all

But

him

have

bankers

of

labors,

then worked like beavers to climb

industries

our

his

of

for

bought their company's stock, and
10%

depres¬

and

and

money

very

working

managers

who,

men

only

—"all bound round with

*

his

because

dependent

are

tlon

one

prosperity

is

means

nessman

of

Leland

you

.In

heard

the

of

corporations

sion.

to¬

of

all

Most

is

fruits

between

This

their

save

to'do

their

the

of

old-fashioned

gether.

I

Doan

to

starve

•fact,

of

to

workers have

our

by

in the quantity of gDods produced
in any year marks the d.Lerence

business

secrets

variation

this

ment. All

share

"getting behind the trustworthy President we'
have in Washington.".
a

accomplish

can

it

do

him,, and he will receive his full

*

between labor, capital and brains.

cause

Leland

any

is

and

—

bloody revolution, or
change whatever in Govern¬
a

would then be surprised to learn
that their real employers were not

substitute for courage and enterprise,

American banker of today

hire

employee—but he

Leland

on

For individuals, he prescribes thrift, hard work and
oId-fashione<J honesty; for corporation, the redevelopment and
no

to

corporations

own

without

They could then fire their present
investing some of his bosses, elect their own Boards of
savings in Dow Chemical Com- Directors and raise their wages
pany
stock.
From that moment whenever they liked. Perhaps they
result

controls.

Concludes there is

oppor¬

to

Of course, no man

us.

enough

indirectly

keep private business solvent to keep
Michigan banker urges encouragement

maintenance of cooperation

men

rich

the

is

have

employ
of outstanding ability

Doan at his

must

the nation prosperous,
of private initiative, without

all

to work for
is

Saginaw, Mich.

Asserting America

blessings

we

White,.Weld & Co.

31

8

The Commercial and Financial Chronicle

(920)

stock dividends
Leaders

or

splits.

Also available is

a

Thursday, February 24, 1955

.

..

list of market

Laggards.

vs.

Pillsbury Mills, Inc.—Memorandum—Carl M. Loeb, Rhoades &

Dealer-Broker Investment

Co., 42 Wall Street, New York 5, N. Y.
Public

Recommendations & Literature
It

understood

is

Riddle Airlines,
&

will he pleased

firms mentioned

the

that

Inc.—Bulletin—New

Wall Street, New

44

Canadian

Corporation,

120

Uranium, Inc.

Analysis

—

George A. Searight, 115

—

Carbide

Carbon

&

The

Letter—Fortnightly review of the Canadian Securi¬

Co., 21 West 44th Street, New York

division

U. S. Vitamin Corporation

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

Weekly Stock

Mason

—

Report

particular

tric Power Co., Ltd.—Nomura

New York

74

Dollars

Trinity

bulletins

Place,

Mr. Edison had

Industries,

Low

Atoms

and

&

Co.,

in

Wall

36

Sec-

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

like

Priced

Speculative Stocks — Tabulation — Bruns, NordeCo., 52 Wall Street, New York 5, N. Y.

&

ir.ar.

New York

folios

of

sources

Banks—Laird,
5, New York.

income

gross

Bissell

&

of

New

16

tion

to

rewrite

laws.

He

the

had

of

some

Jones Averages and the 35 over-the-counter industrial stocks
used in the National Quotation Bureau Averages, both as to

yield

and

National

market

performance

Quotation

over

Inc.,

Bureau,

13-year

a

46

period

Street,

Front

of

^Latest
Co.'s

If

York 4, N. Y.

Co.,

Thirtieth

1033

Street,

N.

Washington

W.,

John

w.

only all the scientific geniuses of today would

*

Argus Cameras, Inc.—Memorandum—Hirsch

&

Plywood

Corporation—Bulletin—De

ganization, 100 Broadway, New York 5, N. Y.
is

bulletin

a

Conklin

Also available

General Petroleums of Canada Ltd.

on

52

Oil & Mine—Report—L. D.
Broadway, New York 4, N. Y.

Bucyrus
Broad

Erie

Friedman

&

Co., Inc.,

Co—Memorandum—Eastman, Dillon & Co., 15

Street, New York 5, N. Y.

March 3rd will admit S. Logan

&
Eastern Illinois
Railroad—Bulletin
(No.
186)—
Smith, Barney & Co., 14 Wall Street, New York 5, N. Y.

Cinerama Productions Corp.—Analysis—John K. Boland &
Co.,
30 Broad Street, New York
4, N. Y.

Empire
New

State

Oil—Circular—Hay, Fales & Co., 71 Broadway,

York 6, N.

General
Broad

Glidden

Dry

Y.

Batteries

Inc.—Data—Lewis

&

Stoehr,

Inc.,

80

Company—Analysis—Kidder, Peabody & Co., 17 Wall
Analysis

—

—

H.

Hentz

&

bulletin

a

on

Memorandum

—

Leason

—

&

Co., 39

South

Street, Chicago 3, 111.

Merganthaler Linotype Co.

England

Lime

Granger & Company,

—

re¬

Pennsylvania

Railroad

Co.

—

Analysis

in

&

current

Co.,

of

5, N. Y.

In

the

same

issue

is

a

list

of

candidates

for

—-

Brokers

—

Dealers

new

institutional

the

date

same

Plum will become

trustee

as

a

Matthias

limited part¬
two trust

There

South.

eyed

indentures.

(Special to The Financial Chronicle)

Bosworth, Sullivan io
Admit G. F. Muller
DENVER, Colo.—On March 3rd
George B. Fisher will be admitted
to

partnership in Bosworth, Sulli¬
van &
Co., 660 Seventeenth Street,

the

firm

in

charge
statistical department.

of

the

Morgan & Co., 634 South
Spring Street, members of the
Los Angeles Stock Exchange. Mr.
Dawson

to The Financial

Chapman
A

I.

„

Ashton

is

&

Mich.
now

—

West

at

under

1434

Plimpton

the firm

E.

with

Mc-

Nichols Road.

Alex Weinstein

with

name

which

a

of

$50,000,000
insurance

have

made

such

a

the open market a
coupon

bit
rate

involved.
The

notes

new

subject

are

to

prepayment at the option of the
issuer

but

will

not

sinking fund

involve

or

any

restrictions

dividend

common

payments.

they will be convertible, in

certain

contingencies, to shorter-

lower-interest rate

maturity,
paper.
Free

Opens

BROOKLYN, N. Y.—Alex Weinstein has opened offices at 3715
Kings Highway to engage in a

Leg

for

Rock .Island

has convinced the Interstate Com¬

Commission

merce

tive

bidding

its plan

DEPENDABLE MARKETS

is

that

not

competi¬

necessary

in

to sell $65,000,000 of in-

debentures.

such requirement, said the carrier
have

not

bids,

advertise

to

for

but that it later would

re¬

issue

the

N.A.S.D

quire
Broker and Dealer

ICC

approval

to

debentures.

The issue is being offered under

Material and Consultation

"Atoms in Business"

would

venture in

I
-

of

group

difficult at the 3%%

did

Industries Inc."

a

Chicago, Rock Island & Pacific

©0., xta.
Member

out of

of

securities business.

U omtita ileaitrilies

came

news

companies.

And

BRONX, N. Y.—Milton Shuck
conducting a securities business
offices

the

placement

loan

fixed

Goodwin.

Milton Shuck Opens
is

as

of greeninvestment

among

Goodyear Tire & Rubber Co.'s di¬

M. J. Shuck Co.

Charles

15315

bankers

on

from

~

Co.,

&

Hoffman &

Chronicle)

affiliated

formerly with Hill
Co.,
and
Walston,

was

Richards

Aveue,

(Special

has become associated

with

members of the New York Stock
with

ANGELES, Calif.—Howard

D. Dawson

plenty

were

stares

The big tire maker was able to
negotiate its new accomodation
on
a
100-year basis, something

Joins Morgan Staff

under

buyers.

Big One Goes Direct

William W. Lewis, registered rep¬
resentatives.

the

$17,000,000 of 3(Lyear,
bonds, is the im¬
job in hand. Bid in-, at

branch office in

Minneapolis, Minn., at 629 Second
Avenue

of

and
re-offered as 3V4S,
102.127, to yield 3.14%, market
observers were watching
to see
what would
be the response of

manager; and Dale R. Wikman and rect

On

"Electronic Dollars & Sense"
"Litton

the
the

101.5129

Street.

Available:

•

that
from

mortgage

come

For Banks

is

appears,

"realistic"

at

Philadelphia office, 225 South 15th

DETROIT,

"Gleanings"—Francis I. du Pont & Co., 1 Wall
Street, New

it

be

mediate

new office are Arthur E. Geggie,
Jr., resident manager; R. C. Mees,

in

er

453

issue

a

first

York office. Mr. Alcorn is
manag¬
of the sales department in the

department

Joins Ashton Staff

Corp.—Memorandum—Fewel
South Spring Street, Los
Angeles 13, Calif.

York

investment

Company—Analysis—Dayton Haigney &

Thermador

as

Texas Electric Service Co.'s of¬

fering

Associated with the firm in the

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

the

opening of

Exchange. Mr. Fisher is associated

Analysis
Broadway, New York 6, N. Y.
—

two

good illustration of the present
The prime

New

California

Power.

Mining Company — Analysis — Carl
Inc., 50 Broad Street, New York 4, N. Y.

Corp.

La Salle

New

of

manager

Co., 60 Beaver Street,

Consolidated

Marks & Co.,

111

Stewart

LOS

New York 4, N. Y. Also available is
Electric Power and Rockland Light

Mercast

S.

MINNEAPOLIS, Minn. —Rey¬
nolds & Co., members of the New
York Stock Exchange and other
principal exchanges, announce the

Street, New York 4, N. Y.

Corp.

Lepanto

and

Alcorn,
Jr. to partnership. Mr.
Stirling is

ner

Street, New York 5, N. Y.
Ilertz

Stirling

search

Chicago

Reynolds Opens New
Minneapolis Brands

To Admit Partners
Eastman, Dillon & Co., 15 Broad
Street, New York City, members
of the New York Stock
Exchange
on

Bonanza

these

standpoint of the buyer.

Eastman, Dillon ft Go.

Or¬

lag¬

alluded to

generally

pricing

Co., 25 Broad

Witt

smaller

the

on

of

experience
is

requisite,

take these words to heart!

Street, New York 4, N. Y. Also available is a memorandum
on Virginia Orange Free State Gold
Mining Co.
Atlas

bit

a

temper of the market.

7,
.

around,

side.

issues

Bricker

amounts
*

Light's

&

well

y

small

remaining

Power

The

Bricker.

pret t

only

reported

gard

.

#

been

up,

Dallas

that

City Power & Light
offering of 30-year

offering still is

D. C.
»

has

cleaned
are

indicate

reports

recent

bonds

a

New

pro¬

extremely
willing, at the mo¬
are

directly.

—

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

curities

Senator J. W.

buyers
and

while Kansas

equate scientific wisdom

life.

calendar

the future

for

up

„

issues

and wisdom in all the other affairs

to

de¬

ment, to turn their attention tem¬
porarily to the mortgage market
and firms seeking to place debt

the

tists

been

full

rather

a

cautious

scien¬

parison between the listed industrial stocks used in the Dow-

have

present.

the

spective

immigra¬

none

egotism which leads

Over-the-Counter Index—Folder showing an up-to-date com¬

for

building

present day scientists.
recall, for example, that

how

on

120 Broadway, New York

Meeds,

to

appeared

With

great scientist

as a

he broadcast to the nation advice

City

York

his reputation

some

I do not

City Banks—Breakdown of government bond port¬

and

political convictions. He did not,

public opinion on
foreign or defense policy or on
other political matters outside his
field of special competence.
"In that, of course, he was not

Street,

Japan—Circular—Yamaichi

in

on

influence

to

Business.

5, N. Y.

Investment Opportunities
rities

Inc.

Oils—Analysis—Bache

York

however, trade

They find

veloping have been scared off at
least

Sense—Bulletin—Troster, Singer & Co.,
New York 6, N. Y. Also available are

Litton

on

International
New

&

concerned,

are

potential buying orders

some

that

Hear! Hear!

Chuo-ku, Tokyo, Japan.
Electronic

in¬

corporate section of

managers

that

Securities Co., Ltd;, 61 Broad¬
1-1 Chome, Nihonbashi-Tori,

Y. and

6. N.

mar¬

down

according to observers.

Ltd., Hokuriku Electric Power Co., Ltd. and Hokkaido Elec¬

way,

slow

inquiries by institutional port¬

folio

"Monthly Stock Digest"
Chugoku Electric Power Lo.,

to

reference

investment
to

This is particularly true insofar
as

Street, Milwaukee 2, Wis.

Electric Utilities in Japan—In current

with

the

trend

government

list.

the

Loewi & Co., 225 East

—

in

terest

corporation's products
—alloys, carbons, gases, chemicals and plastics.

Earnings Performance of Japanese Stocks—In current issue of

the

of

lower

the

in

ket has tended

booklet describing the

illustrated

an

irregularly

prevailing

Corporation—Annual

report—Sec¬
retary, Union Carbide & Carbon Corporation, 30 East 42nd
Street, New York 17, N. Y. Also available with the report is

36, N. Y.

4,

I.

Union

York 5, N. Y.

ties Market—Newling &

Hanseatic

Broadway, New York 6, N. Y.

Analyzer—Tabulation—Blair & Co., Incorporated,

Stock

York

Broadway, New York 5, N. Y.
U. &

Bank

Inc.—Analysis—Eisele & King, Libaire, Stout

Co., 50 Broadway, New York 4, N. Y.

Time,

parties the f ollowing literature:

interested

send

to

Service Co. of New Hampshire—Highlights—Ira Haupt
Co., Ill Broadway, New York 6, N. Y.

&

a

plan

to

retire

the

preferred

be

converted

on

;

HA

2

2400

Members:

74

N.

Y.

Security

Dealers

Association

Trinity Place, New York 6, N. Y.




I

without obligation
j^y

J.

376

61

into

|

Japanese Stocks and Bonds

Troster, Singer & Co.

stock

basis.

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

BOwling

Green 9-0187

Head 'Office

Tokyo

itrftiiuirv

Trnrirn

o

aa

DEmPSEY-TEGELER &» CO*
j

"

•

which

common

may
on

a

share-for-share

If all holders convert prior

to the debenture sale date, the
comPanynoted,' no sale would be
necessary.

^

Number 5406

181

Volume

..

The Commercial and Financial

.

include

doesn't

leaps

York City

is

that the past 25 years of our national econ¬
omy should only be looked at as guide-posts to the next 25
years, gives a business forecast of 'growth and development of
Mr. Cryan, stating

far ahead

as

to

This

enabling

Its

decade. These signs of

avoid the

are

monize

chasms

which

as

t?

a

will

I

M.

attemnt

the extraordi-

Cryan

oppor-

nary

which

tunities

for

exist

young

havf

be attributed

great

Insurance statistics have shown

received

have

the

at

University of Notre Dame.
in the past

that out of

100

every

at the age of 25, after
period of 40 years have elapsed,
36 have died; 54 have become deyoung men
a

relatives or charity;
five are still working; four are
well-to-do; and one is rich. These
figures sound almost incredible—
nevertheless, they are substantially correct.
The reasons for
such
a
high mortality are nu
merous, among which is lack of
pendent

on

what goes on,

in

interest

beyond

getting three meals a day and

a

place in which to sleep — some
people call it lack of initiative,
or
we
might list it as lack of

capacity

to

create

ourselves in the

of

niche

a

for

economic scheme

'

this

Keep
two

no

this
I

and
cial

.

in

,,

We

There

mind.

are

given

and

discourses
similar topics

many

many

have divided

into

society

none,

Proportion

12

The reason for so few Masters
became

ever

man

before

he

then

a

first

was

an

thought principally uppermost in

mind is to

my

arouse

the indif-

ferent's interest to become

a

keen

student, the student's interest into
becoming
into

adept, and the adept
success is

an

Master, because

a

depends

cess

into the business

on

great

a

many

endowed

governed by law—not by luck

by

the

Almighty

God; to learn to think, to reason
and'imagine, for therein lies the
great reservoir of human power.

a

The

adept.

as we go

million

"1930s"

tons

per

tough;

were

U. S. A.

not

was

short sale.

a

indeed,

dark years

were

it is true that the darkest hour

but

is always before the dawn.

It

was

it

is

then met the

ness

head-on

and

extensive

successfully.

the

devastating

which

followed,

population

Our

is

170 million—the average an¬

now

nual wage

has increased to $4,200

annum—the hours

per
are

depression

met

war

busi¬

American

today.

true

ings

at

are

an

billion.

$150

week

per

to 35 and

down from 48

all-time

Cars,

of

refrigerators

for

the country,

with steel running at

one

of

its

125

been

highest

million

has

every

capacities

Life

tons.

increased

person

in

of

expectance

by

12

years.

Among the most interesting facts
about the changes
of

our

years

of the

economy

country during the past 25
are

the 20%

birth

higher

stay

will

tech¬

in

advances

will

might

that

appear

dips
be

activity

a

dustry

a

of

but conditions in future
the business cycle will

The

than

stable

more

of

days

Twenty

in

severe

believed

are

or

-

_

,

,

stable in¬
declining industry?

fluctuation?

(3) Who
chief

I was a guest speaker at a convention held in Sun Valley, Idaho,
After the convention I went to
Spokane, Wash., then down the
Coast to San Francisco —- from
there to Dallas and Fort Worth,
Memphis, Tenn. and back to New
York. During this trip I couldn t

(a) Statutory Law, such as Fed-

_

'

eral, State and Municipal Law.

(b)

Law of custom
talk

School
of

15,

of

Notre

by

Cryan

Mr.

Commerce,

Dame,

—

decrees

before

the

the University
Dame, Ind., Feb.

at

Notre

current

factors

de¬
cus¬

tomers?

these

(5) Are

with commercial

be

to

the

past.

depressions

Who

the threat

(7)
How

safe

sale,

NEW

or

as an

•After

S.

WaS




the

the
in

billion

all-time
1954.

high

of

$253

Accordingly, this

will manifest itself
in the stock market, as the New
York Stock Exchange is one of
the great mirrors of our economy
to
reflect
the
great
industrial
great growth

growth of

country.

our

will

the

industry's

in

past will

continue to be
Automobiles

future.

the

growth

one

were

industry in the 20s—
in the 30s. Neither
a
growth in¬

refrigerators
be

can

into

trends

However,

high

relatively

income

of

degree

a

with

and

ap¬

little

relatively

Concentrate

(1)
the

holdings

your

top five, seven, or ten in¬

is

the

(10)

Are

there

Shift once or twice a year

(2)

in

keep your investment only

on

the hori¬

that will affect the industry's

zon

price

(11)

earnings

or

picture?

What is the industry's

cent,
market

standing

and

1%5

according

How is the industry apt to

(12)
be

affected

by

governmental

pending political,
international

and

developments?
These questions

sidered

only

making

a

as a

should be

72,200

which

of

the

make

aim

should

fast

improving

they

move

ranks.

which

For

up

ranked

35th

obviously

to

switch into

before

groups

to

the

instance,

an

42nd

and 20th
heading

$253,000,000
356,000,000

$298,000,000

in

leading industries such

our

opportunities

Parts,

Accessories,

Auto

Building

Passenger,

very

top

industry

one

road

par

586,000,000

Retail

Equipment,

Textiles

Rubber,
ural Gas,

and

Rayon,

and

Trade,

Tire

Telephone, etc.

vain®)

Copies of the Prospectus may he obtained from the undersigned and other
or brokers
who may lawfully offer these securities in this btate.

Shields & Company

and

Utilities—Nat¬

Tobacco,

shares for

Company

dealers

February 24, 1955.

Drugs,

Paper

Shoes, Soaps, Fats and Oils, Steel,

is

While

Auto—•

Materials,

Containers,
Equipment,

as:

Auto

Fulp, Petroleum, Railroads, Rail¬

week,

the next,

places.

Electrical

of

exist

Equipment,

PRICE $6 PER SHARE

$367,000,000

465,000,000

the

These

is under no circumstances to he construed as, an offering of these
offer to buy, or as a solicitation of an offer to buy, any of such shares.
The offering is made only by the Prospectus.

(35 1

3,800

many

up

ours.

Common Stock

84.400

2.900

con¬

stimulus toward

survey

industries

212,000

3,200

to

technical market analysis?

1975

187,000

re¬

prospective

and

current

Chemicals,

the top groups.
One

is

important

any

technological changes

.

.

la¬

extent

wide unions?

mately 1,000 people a day moving
.

ma¬

industry's
what

To

Agricultural

dustry groups;

39th,

What

situation?

major

raw

inventories?

and

strength of this great country

risk:

to

(9)
bor

future.

the

get

one can

preciation

in

supplies

by

considered

dustry today. The trick, of course,
is to project past and recent in¬
dustry

affected

of

growth industries isn't as simple
as
it may sound.
You cannot be
sure
that a
growth industry of
the

be

it dominated by powerful nation¬

cost,

selection

the

However,

terial

of

event

earnings

told that there are aPP™xi-

62,300

taxes.

in

indus¬

materials?

price fluctuations in its

South Georgia Natural Gas

guest of one of the leading invest bankers in San Francisco, I

162,000

Output

the

complications?

157,500 Shares

•

U.

it

is

ISSUE

ment

Now

Total

is

raw

population of 212 million peo¬
ple, with individual incomes ap¬
proaching $367 billion, compared

a

(000's Omitted)

Individual Income *

of

How

(8)

industry's

How serious is

secure

supply

Development of the United States

Unemployment

subject

they present?

How

try's

the

now

the

are

international

over.

from

years

(6)

potentialities be-

The Next 20 Years—A Business Forecast of Growth

Employment

factors

main competitors?

into the State of California. That

1955.

Population

industry's

termine the demand of these

yond human imagination. While a

J

the

are

customers?

United States is expected to have

with

cur¬

position in the general busi¬
ness cycle?
In its own particular
cycle?
In
its normal
seasonal

This advertisement is not, and

help but appreciate the enormous
gize of this great country of ours,

.

7/,«!•

i

growth

a

relatively

,

three

•

•rp

UnWe

Industry

an

industry

rent

will have its

and downs in the intervening

years,

off.

pays

to change in the near future?

growth.

Business

and TV sets are at a rate of about

four-to-one

industry,

speed up the normal pace of busi¬

ups

the

(4) What

nology

sav¬

high

(1) Is

avoided.

be

spending

radical

No

a

thousand years ago, and

two

true

Before You Invest in

high.

with

men

.

world

were
.

and

is,

70

hard; it took

were

defense

But

*

_

will

war

usually

great mental powers by which we

1

MASTERS

no

.

way not to fail is to
determine to succeed, through the

27

ADEPTS

that

the
.

things. The

50%

student

played

thinking then of TV

The

They

determined to succeed, we
must first of all realize that suc-

STUDENTS

.

the

So it

INDIFFERENTS

is

who

according to the rules.

game

days.

fortitude to retain their belief that

different

kinds:

Master

they

commer-

our

four

Type

Rockne,

Knute

not

than

less

annum.

enthusiasm and pride, but
in my opinion, ever excelled

nesSj

financial

cold

were

were

to

how to live with manli-

us

years,

sets, refrigerators, or automobiles.
The net steel capacity had fallen

men ln tbls country who

ot

25

These

to win with others. We have had
taught

people alike.

have

I
on

.

desire.
All-out

way.

rows

watched
those averages hit
depression low in 1932 of 40.

We

the

football. He thought football the
way B e e t h o v e n thought symP
wa+s a na^:uJab He
taught them how to run; how to
stand firm; how to fall down; how
f° take, fcare of themselves and
Hve nght. Boys grew in every di* £ *2 un
Knute s great train10g*
was not just a man of
muscle-Knute was a thinker. He
invented plays that would leave
°?ier
W1
'ey bad
houg™ of }he™ flrSt* rxKnUt!
taught boys to be men. He put
+V
tbeir characters. He
them to want to win for
team, for the greatest satisfactmn is not to win for yourself, but
a

things
T_

this

to hoe.
turn the clock back, if we
tough

terms of the Dow-Jones averages.

A homely man, with a wide
f™?'
^1

will

which you

that

similar to

tion,

had

when the popula¬
tion of this country was 120 mil¬
lion people, with average annual
earnings of $1,000 per year for 50
hours a week work. The savings
of our people then were $34 bil¬
lion, and the stock market reached
a
high approximately 390 in the

p""ed t0 a
degree, by one
°.f. the men of this great Univery' ^
t ^wof r,ca!
tVfan-Ma/cer, Knute Rockne.

particularly those who
the advantages of college educa-

men.

us

may,

likewise succeed in proportion to
^our adherence to some of these
aslc concePts> which we have lllustrated thus far. That is exem-

illustrate

to
Frank

Let

if

the mortality bas been high. In
a11 Probability> during the next 25
years those of you who are 2ath~
ered in this auditorium today will

this

discourse

laws

have

can

ness

It has not always been

?"ic laws despite the fact that

tho

of

course

those

of

eye

increase and
participate in it, if you

unparalleled

an

you

throughout

all of which indicates
opportunities in the

great

We

lar£ely to the People of this country harmonizing with these spe-

United States.
Taurine

all

tbe Past 50 years can

Hl

t

con-

extraordinary economic
growth of the United States in

an

dvnamic

with

for

the

10, catching such fast movers

(2) What is the industry's

headed

is

business

American

hits

group

Twelve Questions You Should Ask

thing unforeseen 25 years ago.

past

United States.

expect to succeed,

we

in-

extricably
part of

are

the

growth and

travel

you

the country,

cerned, to the extent that we har-

eco-

nomic

the

individuals

South.

production meet the

(c) Law 0f human nature —
That is one of the most important,
as

months

several

within

doubled

wherever

far

4J/2 times. The same
applies to natural gas. Oil 2l/z
times. Now, there is a new source
of energy—nuclear power—some¬

population and business have

almost

business

so

in

of

duction

move-up may

a

the

the way up

on

multiplied

business trip

a

Ga.

true

This great city is recognized

that we shall wear business
clothes to work, neckties, etc.

to

us

of

the production side
impressive. Pro¬
electricity has been

before

stop

on

more

even

occasionally such
top

and over.

Big gains
are

so

y*

in our National economy
should only be
looked
upon
in
retrospect, as
guide-posts towards the next 25
years,
thus

likewise

is

the business hub of the

as

growth industries and lists 12 questions that
should be asked before investing in an industry.

past 25 years

re¬

period

a

number

years

ex¬

natural

great

enjoying

Atlanta,

ago.

of investing in

The

in

at a rate

the South. I made

Stresses importance

1975.

as

ahead

more than double
of people aged
65

the

and

rate,
the

productivity with almost startling
results.

the United States

its

with

sources

Members, New York Stock Exchange

y'
r

surging

bounds,

and

west

Partner, McLaughlin, Cryan & Co., New

,

in¬

ceeding the fondest expectations
of all leading economists in this
section of the country. The South¬

By FRANK M. CRYAN*

,

is

Business

A Look Back and Ahead

natural

the

in its population.

crease

The Nation's Economy:

9

(921)

Chronicle

XO

The Commercial and Financial Chronicle

(922)

Diversification and Selection oi

cost

$120,763 are now worth only
$101,187. While his dividend in¬
come in 1954 was $4,460 vs. $3,523
in

By C. MELVIN McCUEN

Trust Co.,

Union Title Insurance and

1929, nevertheless,

994.40.

California

Diego,

San

histories of two investors each select¬
of stocks as pointing out necessity for
proper selection of stocks for long term

Mr. McCuen gives case

decided
ns

vings

in

he

their life time

invest

to

stocks

common

ceived

of

that

stocks

all

1929.

in¬

of

their only
come was

Melvin

idends

McCuen

inal
in

which

stocks

dends.

had

had

had

bought

Mow

shares

100

now

each

included

in

Industrials.

Jones

the

would

and
"A,"

a

house

the

city

in

afforded

that

of

Now, let
tive

Dividend

(Purchasing

power

worth

were

he

could

have

standard

"A"

and

of

with

respec¬

of

In¬

"B"

Investor

as

$1,456.00

17.62

in

1929

stable

in

7.28

$3,505.38

$1,448.72

2,944.52

Taxes

1,216.92

Texas

Turnpike Go.

For Sale

$4,460.00

$5,077.00

*624.62

*733.09

$3,835.38

$4,343.91

1,994.40

2,258.83

__

Net After Taxes

Buying Power in Stable Dollars
50%

♦Assumes

dividends

of

were

received

after

June

30,

February 1, 1955

American

Feb.

Per Sh.

Earnings

Price

1929

1954 (Est.)

$79.63

$98.50

$3.15

45.00

41.37

2.00

Sept. 8, '29
Price

Can

1, '55

45.50

Per Share Divs.

1929

1954

*$4.80

$1.50

$3.00

*2.53

1.25

1.55

4.56

3.25

1.37

2.00

Am. Smelt. & Ref.

53.37

Tel.

301.00

176.00

15.22

12.00

9.00

68.75

5.77

6.10

5.00

4.40

Products

107.50

89.13

5.49

5.55

4.00

3.85

aged jointly

&

the

with

Texas

Turn¬

pike

Company Feb. 23 whereby
the underwriting group has t^ken
an
option
oni. $137,000,000
of
Dallas-Houston

Turnpike

15,

the

March

syndicate

receive

ments

prior

members,

that

to

bonds

Should

1955.

commit¬
from

time

dealers,

Corn

General Foods

73.25

76.37

3.68

5.75

3.00

Int. Harvester

47.00

36.25

2.37

*2.24

0.84

67.87

85.50

2.70

*5.24

1.00

4.25

Manville

A

bonds

revenue

$27,000,000 in

will

be

the

degree

1918 he served
Trade

War

toll-road,
to

area

Both

series

ma¬

running

for

about

223

Shields & Go. Offers

and

with

1.00

0.90
2.90

tJ. S. Steel

86.50

80.00

7.06

*6.45

2.67

3.00

Westinghouse Elec.

71.75

81.13

2.55

5.40

1.00

2.50* Georgia

Wool worth

99.50

51.75

3.66

3.10

2.40

2.50

$1,207.62 $1,011.87

$-32.32

$67.99

$35.23

$44.60

stock

common

Natural

share

per

as

of South

(par $1)

a

Gas

Co.

at

$6

earnings 4.4%

Natural

tem

to

Sept. 3, '29

Steel-

Feb. 1, '55

Per Sh.

Earnings

Price

Price

1929

1954 (Est.)

$46.25

$118.87

$3.67 *$13.18

Per Share Divs.

1929

1954

proposes

operate

sell

bution
on

Co.

State

the

pipe line sys¬

a

deliver

and

natural

an

systems in

towns, and
for in¬

15

interruptible

basis

$1.17

$5.75

Chrysler

36.13

69.00

2.52

3.00

1.50

4.50

duPoni

54.00

163.50

1.77

7.00

1.46

5.50

Eastman

30.63

72.63

1.37

3.60

1.14

2.00

1924

the proposed system

—

Electric-

32.75

49.75

0.75

2.30

0.50

1.47

General

Motors—

36.13

99.00

2.74

*9.09

1.80

5.00

26.63

57.75

4.67

5.25

1.25

3.25

Goodyear

dustrial

plants

northern

In
mon

southwest

63.25

1.64

*4.12

Nil

3.00

will

93.00

1.98

*5.42

1.07

3.45

stitutions

Sears,

79.75

1.66

5.00

0.63

3.05

include the

Roebuck—

Standard Oil Calif.

32.-33

78.13

1.65

7.10

1.13

3.00

Standard Oil N. J.

33.13

118.00

2.13

9.20

0.64

4.55

Texas

34.75

88.75

2.45

7.75

1.50

3.75

due

45.50

83.87

1.31

*3.10

0.77

2.50

turity

—

Union Carbide

is $8,599,300.
sale

of. com¬

of

sale to

thereof

three

in¬

of first
mortgage pipe line bonds, 4%%,
due Feb. 1, 1975, and the sale for

43.25

Company

the

estimated

the financing

stock,

18.25

to

industrial
and

Georgia

The

Florida.

addition

63.37

Steel

five

by

use

in

Procter & Gamble

National

$888,000

of

Feb.

by

$6,375,000

$875,500

a

6%

note,

1, 1957, payable at ma¬
the issuance of 8,500

shares of preferred stock and 25,-

$533.40 $1,235.25

$85.11

$30.31

1929:

14.5

$50.77

in

United Aircraft

now

in the 30 Dow Jones Industrials

firr>"o

A

?»nd

Group

jprices adjusted for




eliminated

so

B.

stock splits.

as

to have

even

was

incorporated in 1934.

amount of stocks in both

Cumberland

Bank

of

in

Peru

1920.

He became

after serving

1923

has

formed

Baron

with offices at 455
to engage in a

&

Company

Cumberland

Dr.

was

financial

adviser

to

and financial expert for the State Depart¬

Exchange firm

the New York
York City, re¬
maining as a partner until 1945 when he became identified with
Ladenburg, Thalmann & Co.
During his busy life he was also
an economist with the N.R.A.
in 1933,vand American delegate to
Nicaragua,

an

of Wellington

1945.

in

Francisco

Dr.

joined

He

&

Co., New

German Long Term

on

consultant

economic

1928.

and

1927

the Berlin Conference

International

on

Cumberland

was

a

Debts in 1934, and
Organization in San

director

in

a

number

also author of "Competitive Marketing" and
co-author of "The American Individual Enterprise System."
In

of

corporations and

summing

Dr. Cumberland's life and activities, Mr. Herbert D.

uo

Seibert, Editor and Publisher of "The Chronicle," concludes with
this comment: "In Dr. Cumberland's demise, Wall Street and the
country have lost

a

very

able man."

Even So!
serious
can

prove

areas

in which

a

helpful if the [Senate Banking and Cur¬

Committee] Committee is really concerned,

rency
as

however, certain

are,

inquiry [into recent stock market behavior]

stated, in keeping the study objective and con¬

structive.

Among these

may

be suggested the fol¬

lowing:
"(1) More adequate data than are now available
to the volume of

buying by institutional inves¬

trusts,

corporate

pension funds,

personal trusts, insurance companies, saving banks,
etc.—and
more

available

possible effect in locking

stocks

the market.

on

tendency

postwar

of corporations

to

capital improvements out of earnings rather

by public issues, together with the favorable

tax treatment accorded interest on

dry

up

permanently and thus diminishing the

supply

The

"(2)

than

its

less

or

up

the supply of

new

debt, tending to

stock issues.

"(3) The capital gains tax which makes investors

unwilling to sell and take profits. The deterrent
effect becomes

compounded in the

case

of the older

investor

by the high estate taxes which, when the

investor

dies,

take

an

additional slice out of his

assets.

"(4) The question as to how far, in view

of the

fluidity of credit wherever created, it is possible to
the real

trace

sources

of funds used in the stock

market; also how far it is possible to make money

tighter for stock market uses while keeping it easy
for

everything else."—The National City Bank of

We

strongly commend this temperate but pene¬

trating comment to the authorities in

Warren Street

securities business.

as

superintendent of customs in Peru.

Baron & Co. Formed
HUDSON, N. Y.—S. M. Baron

National Distillers was

W.

New York.

yield
times earnings 4.10% yield

♦Actual.

JUS

500 shares of common stock.

17.6 times earnings 2.73%

1954:

$14.56

1927

to

W.

a

Reserve

Republic of Haiti

cost, including working capital, of

Kodak

General

was

commissioner and

to con¬

for resale by local gas distri¬

gas

Group "B"—

Gas

struct and

yield

the

of

finance

speculation.

Organized in 1950, South Georgia

times

with 'the

Armenia; Amer¬

foreign trade ad¬
Department in 1919 and

and

&

Co., New York, and
associates today (Feb. 24) are of¬
fering publicly 157,500 shares of

0.90

14.8

1920;

tors—investment

Natural Gas Shares
Shields

4.30

1954:

Dr. Cum¬

economist

appointed

was

High Commissioner in Constantinople in

Houston.

*1.28

yield

expert with the

1919 he was a member

Commission to Negotiate Peace.

miles from the Dallas-Fort Worth

1.47

2.9%

economic

an

Financial Commissions and the Ameri¬

of the

"There

underwriting agree¬
signed at 2 p.m.

of the State of Texas' first modern

2.64

earnings

as

Board; in

is

turing in 1995, the bonds will be
offered at par.
The financing will
provide funds for the construction

19.75

times

Master's

whole

be

made.

61.87

19.4

his

Columbia

75%

Friday, Feb. 25, 1955, at which
time public offering of the issues

64.87

1929:

earned

and

series B

syndicate

purchase

to

final

The
ment

20.75

—

Occidental

at

College, Los An¬
degree at
University in 1913 and his Doctor's
at Princeton University in 1916.
In

geles,

in 4%

and

5%

the

bonds,

obligated

Loew's Inc

Bethlehem

a

education

institu¬

of the $110,000,000

more

series

lnternatl. Nickel—

_

25

tions and other investors for 75%

2.00

Johns

Co.,

native of LaVerne, California, received

his

the

&

Street

Dr.

age,

as

—

Ladenburg, Thalmann &

of

financial

by Glore, Forgan

Wall

Street, New York City, was 65 years of

Governor

Drexel & Co. and Eastman,
Dillon
&
Co., entered into an

2.75

Tel.

firm

viser

9.00

99.63

Amer.

Amer. Tobacco

ing

1919

man¬

fields.

Broad

ment

group,

well-known

Engiewood

corporation

and

governmental

Stock

underwriting

will

30 Dow Jones Industrials

Group "A"—
Allied Chemical

in

From

An

Cumberland,

the

Cumberland, partner in the investment bank¬

amount of the issues.

1954.

at

1955

-

edge of economics and his outstanding services

ican

Feb. 25

on

Wilson

away

American Military Mission to

Bonds fo Be Offered

revenue

Income

passed

berland

of the

of dollar $0.52):

Federal Income Taxes

after

Many-sided

Hospital, L'nglewood, New
Jersey, last Sunday.
Dr. Cumberland was highly esteemed by
his contemporaries for his natural abilities and gifts, his knowl¬

can

or

Buying Power in Stable Dollars

Dividend

dollars,

taxes.

group

power

his

had

he

through

Investor "B"

$3,523.00

(Purchasing

for

nearly doubled the income he had

agreement

positions

of dollar $0.84):

Income.-

1954 Income

improved

living

prob¬

of today.

Federal Income Taxes

Net After

purchas¬

dollar in 1954
$2,258.83.
However,

of the

the east

meals

Investor "A"

1229 Income

the decreased

power

underwriters.

rooming

look at the

us

investment

vestor

These stocks, with¬
out allowance for brokerage com-

and

after

Co.,

(Shown

iu Group A.)

ing

dollars

stable

of

Option agreement negotiated by

his lodging.

30

terms

William

Dr.
man,

have

he

but

on

of

in

living

of

standard

Investor

have

pretentious

side

1929, at the peak of the market.

16 stocks

would

less

in

lower

a

in cash divi¬

"B"

ably could have lived

Investor "A" had $120,763 saved
and

live

to

than

the orig¬
acquired

they

Investor

surroundings,

stock

held for the past 25 years

companies

Had he held these
1929, he would

have received $1,456

in¬

div¬

investors

14

shares all through

from

their

Both

investments.

this group.

in

source

revenue;

which

stocks

purchased for $53,365 are
now
worth $123,525, and his 1954
dividends amounted to $5,077, but

savings in Group
bought
100

of the

each

taxes.

a

CUMBERLAND

WILSON
1890

less

a

and

securities

shares

He

$53,365.

was

years

invested his life

vestor had any
other

he

"B"

Neither

in 1929.

"B," however, was not
as Investor
"A," for
could
save
during
his

working

the market

in

sum
rea¬

a

fortnuate

as

buying
the peak

of

him

WILLIAM

were

taxes

this

as

afforded

city to

Tribute to

Wall Street Man

bet¬

a

because of the
the purchasing
dividends and

"B" 's

Investor

com¬

Investor

could

resist
at

quarters,

have

in

lived

sonable standard of living

common

neither

could have

would

merits

ment

1929, he would have re¬
$3,523 in cash dividends,

fortable

invest¬

the

through

all

stocks

and he

on

about

much

these

held

the year

They had heard so

Sept. 3, 1929.

etc.,

his

location,
shrinkage in
power of current
the higher income

Had

$120,763.

cost

mission,

"B,"

and

"A"

investors,

in

from

move

desirable

investment purposes.
Two

location

ter

groups

diversification and

to

The "Chronicle" Pays

would have

"A"

Investor

been forced

ing different

$tt UTimumam

due to the
higher income taxes and decrease
in the purchasing power of the
dollar, his 1954 income in terms
of stable dollars
was
only $1,-

Stock —Two Case Histories
Cmreslment Counselor,

Thursday, February 24, 1955

.

which

stocks

"A" 's

Investor

..

who

are

Washington

interesting themselves in this subject.

Volume 181

Number 5406

.

.

The Commercial and Financial Chronicle

.

(923)

A

Colloquy

in

the Stock Market

on

advance,
Loeb:

•:

In extemporaneous and unrehearsed TV

Broadcast, Gerald M.
Loeb, Partner of E. F. Hutton & Co., members of the New
York Stock Exchange, was questioned
by Eugene Miller,
Associate Managing Editor of "Business Week"
magazine, and
Larry Lesueur as to his views on the stock market situation
with all its

On Feb. 4, a TV Broadcast over

Gerald

M.

of

.

E;

F.

E

.change,

x

CBS

Miller:

G. M. Loeb

Week"

magazine,

re¬

entirely

were

ex¬

oj

transcript

the

Broadcast

Lesueur:

"One

despite

and

business

a

gloomier

from

of

and

some

what

econo¬

Well, the continued rise in
resulted

now

Congressional

a

guest tonight is
fessional.

the

And this

recession

the stock market has
in

the

prolonged

forecasts

might happen
mists.

of

stories of the past year

sustained

rise in the Stock Market.

<even

Mr.

Gerald
think

you

reflected

as

market

bears any

study.
Our
Wall Street pro¬

a

Loeb, do

situation

stocks

think

in

the

is

anything—
comparison with 1929?"

M.

"How

about

much

speculation

too

now

Loeb:

there's

for

"No, I don't
comparison

in

the

is

too

market,

profit,

buying

or

"There's

when

seems

to

there

are

say,

make

and

money,

people that you
abuse the market. The

some

market is there for

fundamental

a

investment reason, but as it stands

it's

now,

still

It's just on

very,

small.

very,

any

people

think

there is.

I think maybe they think
that because they look at the Dow

which

people used to
things. And they

these

that

everything

in

the country is changed, the popu¬

lation,

the

wealth,

these stocks.
make

think it's
tion.

And

quite

It's

the

even

that

up

a

very

wasn't sound

Lesueur:

"Well, Mr. Loeb, is
suspicion of rigging or
manipulation? In fact, does Wall
there

any

Street fear this

value

of

I
different situa¬

sound

It

now.

then."

ent

situation, with the prices of
stocks going up and the volume of
stocks traded on the increase?"
Loeb:

"No

I

I'm

as

in

the

and there

market

day

every

Miller:
in

don't

see

any

real

There may be a very
small amount of what I might call

fringe danger, but it's
The

basic

isn't any fear

on

that

whatever."

score

the

"Are

very

this

market

based

to

on

situation

that

go

that

factors

any

Senator

investigation

Loeb:

small

a

bright
It

situation

is

"I

the

cause

down,

or

news

the

or

Fulbright's

will

up

just

even

in the face

up

decline

news

didn't

meant.
Of

It's

course

market had

when

was

first

some

the

understand
been

people

what

recovered

Formosa

is

Ful-

announced.

small

a

different

time at least."

Lesueur:
you

"Mr.
say

to

go

for

up

a

Loeb, how much
market

good

very

it

Does

actually reflect them six months

of these shares have been subscribed for, no shares
for offering and this advertisement appears

are

as

a

matter

of record only.

they put in? And
body lose every

doesn't

time

some-

it

goes

down,

next

year,

down?"

Loeb:

Loeb:

.

"No,

I think there's
difference. I think that

little

or

sudden

a

war

Mining Co., Inc.

Common Stock
OFFERING PRICE: 25c

Per Share

"Well, there's

no

question

about it. A change x« the
in me

a

-—v.uan&u

a

defense

expenditures

iaie
rate

would

may

be obtained from the undersigned

who invests looks primar- feet the market a great deal."
ily at his dividend check that he
Lesueur: "Mr. Loeb, if the stock
expects to get. And I think the market were
continuing to go up
person who speculates looks ahead to an extent
which rather

and tries to get a profit, or what
the tax people call a capital gain."

"Well, in line with that,

there

are

many

people

new

get-

ting into the stock market?

it

Is

worried

too, maybe you were concerned, too many people buying

you

things

credit, what could this
Investigating Committee

on

Senate
actually

do

about

the

do

several

all

we

politic.

very

had stayed
finally the

very very

itself

news

much better than
people generally believed and the stock mar-

Loeb:

don't

Miller:

what

"Let

about,

Street

that

market in

and

there

the

you

is

elsewhere

a

because most of these stocks have
bought at regular intervals
by Trust Funds and Pepsion Funds
been

Institutions.

dangers in
market

:

Loeb:

"I
I

any

a

thin

of

quality

think

think

it

is

correcting

there

is

little

a

thin market."

that

there

to

thing else

pay

ply

so

that's

while

a

this

market

means

in

short

in short

was

sup-

But I think

ago.

General

supply,

Motors

that

financing

Motors is offering
more stock, which is the
most important piece of financing in a

while-r-it's going to
all

the

way around, bethat is shown to be a

when

cause

be

the

fii^ancfnVhv1

nibpJr companies."
°f/ier
financing by other ^ leaC*
Lesueur.
sale

Mr.

for

way

Loeb,

is

little

a

man

money into Wall
fear of losing his

there any
to put
without

Street

savings?"

Loeb: "Well yes, I think a little
man can be as safe in
Wall Street

anywhere else. The

if

one's

buy

to start
had no experience is to
investment trust, which

an
a

way

that

company

quite
a few different stocks. So
you get
quite a sort of cross section."

that

say

said

to

seems

the—-a

lot

me,

we

has
con-

never

believe I

Mr.

it

to

bring it

Bernard

"Woii

v>o

get

smart

how

you

{L

long

front

course

can

C°r

C3n

they don't want
the

aufte

L

ai/j

r\r>

to

and

stav

that

of

variatfon

a

„

"

™

Well,

tell

Mr.

me,

you think that a person
investing
in
the
stock
market
should put all their
money into
One
gOOd StOCk Or Should they
in
in

their
this
tn s

and

money

nnH
and

a
a

littlp
little

put

in
m

"Well I think that

a

ihat?"
that.'

who's

beginning should ceras I said before,, intrust, which is putting

your money in several different
stocks. And it has another advantage. You really begin to learn
because you get reports from this
Trust, some of them quarterly,
some of them annually, and you
can see what they're
doing and it
sort of starts you on your-education where later on you might

concentrate your purchases more
you know what it's all about."

ask

to

"Another

the business

stock

I'd
it

cycle that affects the

market

government's

thing

Loeb.sIs

Mr>

y0Ui

or

is

it

defense

now

policies,

the

challenges that

now

Loeb. «Well the tw0
7 "V

The business cycle

is

The

duced

the

are

the

important."

stock

it

were

tax

would

has

was reduced
make stocks

stock market, you're going to have
trouble, but if they try to build
confidence
make it
T

in

"ThnnV

Loeb"
ijoeo,

M

the companies that
then we'll do fine."

up,

M11P11P.

we've
we ve

tQ have yQU here

vnn

Wrv

been
oeen

mnnh

stock

where

to

would

tonight..

*t (Announcer)
nnln£.

«Th
T

fh

f
Kri_

speakers

-Af

,

The

editorial

+u?J??+i?i

nnfjinaq rhrnnncpnnl
pcimn! in5 Snf Mnfi S
Hktintfi,i«hpP
ill'
rpra1?
nn+fi Wpfwli
t

t

wnc

find

start

»

a d

M

With

c

t

Mr

t nph

Boel:), noted investment

Carroll, Kirchner

(Special to The Financial Chronicle)

DENVER,
Smith is

roll,
,

now

Colo.

Kirchner'

Denver Club

—

F.

Tupper

associated with Car¬

&
—

Jaquith,

Inc.,

Building,

With Citizens

linked.

GREEN

They're

Co.

BAY, Wis.—William R.

" ~ ------

af-

Sees.

(Special to The Financial Chronicle)

■

has

become

connected

with Citizens Securities Company,
224 Cherry Street, members of the
Midwest

Stock

Exchange.

Mr.

out.

All

finding

out?"

"Well of course, .1 may
prejudiced, but I think that the
best thing to do is to just go to the

NEW

of these Shares having been sold, this advertisement
appears as a matter of record only.

ISSUE

be

Exchange
house; or you can go to
banker who'll probably refer

450,000 Shares

member
your
you

to one."

Miller: "If there

signals
couple
market

are any danger
the horizon in the next

on

Audio & Video Products Corporation
Common Stock

is

months

that

the

(Par Value le per Share)

stock

getting out of control,
have any suggestions as to
what remedies can be applied to
bring
it
down
within
normal
Loeb:
can

Capper & Co.
Underwriters of PRODUCING Uranium
Companies

80 Broad

St., New York 4, N.Y.

Telephone: Dlgby 4-8790




Teletype: N. Y. 1-3726

"Well

I

don't

tinker

with

think
the

think

I

ministration
the

in

of

confidence

that

in

if

the

and

Copies of the Offering Circular

may

be obtained

from the undersigned.

Ad¬

Washington,

that be,

powers

direction

Share

you

stock

Because

tinkering never
with something as delicate as

pays
this. But

Price 30c per

/

ever

market.

creating
the

work in

the

confidence,

securities

that

nrrv

T

of

to

go

they

glad
giaa

verv
veiy

people
know anything about
the
market,
they don't even

don't

re-

divi—

on

more valuable for more people
and you broaden your market. Actually the whole thinS> if Washin§ton tries to monkey with the

affected by Schmitz

market.

government

double

dends- And if that

face us?"

defense policy and they both
feet

tax

on

whether we put more money to
protect ourselves in the tremendous

that

changed, it would increase the
supply of stocks and that would

as

Lesueur:

to sell them and

If

some-

tainly buy,
vestors

Iike

tax.

the

nrobablv

it had

Dases

be

^fsufur:

one

a great many people from
selling
their stocks. They have stocks they
tnink are perhaps too high, but

vfi afJvu further,

♦riJihiT

littlp
lime

a tax that's known as
the capital gains tax and it has
kept

the

on

nrnKoKiv

eauallv

someone

T

they could
things. I think first of

have

stock.

t

on

"Well I think

havf
effect of keeping the
market from going higher. Another
to get out thlnS would be to as I said before
that theory increase the confidence in owning

to

pages it's time
of it. Do you hold with

lell'

Loeb:

pay

that when

starts

very

"It

that

owns

I

so.

too?"

Loeb:

where General

answer

you

once
market

I

front

may I ask?"

enough stocks
that you have to
them, like any-

for

more

mean

not

are

around

go

you

think

market

Lesueur: "Mr. Loeb
heard

separate
do

don't

ourselves right it may
stage this time."

Loeb, do

•

•

itself.

see

high

your

stock?"

you

situation

a

for

Do

I

reached that stage and if

thin

very

high quality stocks

to

reach that

stock

ask

me

wanted

the

ngS Ba™ch

this,
a lot of talk going on

there^s

Wall

in

»SG

"No,

think

was

afL Z

wide range of

a

public

stock—is that happening now?'.'

steady^ and duct

business

levels?"

UNDERWRITER

of

ui

af-

person

do you

Copies of the Offering Circular

you

would

nearest New York Stock

Sodak Uranium &

al

business"

drastically affect it?"

buy

wasn't

Loeb:

1,200,000 Shares

other words

the

operator and

dollar

know

February 23, 1955

let's say, for

American

How

ISSUE

"In

you could predict

change in administration and the

Loeb,
available

Lesueur:

though

sound

means

reflects business conditions.

your

under control?"

as

the stock

of

like the days in 1929 when the
shoe shine boy and the elevator

it

since.

thing.
When you get a piece of
shocking war news you generally
get a decline in the market for a

would

most

_

Miller:

"Well, the stock market

Lesueur:

NEW

some

because people were talking about a sound dollar after the

long

alone?"

think the

frightened

very

really fundamentally very sound."

As all

go

Just like coffee

there

Formosa

of

news

danger.

trivial.

and

Miller:
"What
"No, quite the contrary.
It—there's no suspicion of manip¬ by a thin market,
ulation or rigging, and I can say
Loeb:
"A thin

who

•

going

was

Why did the stock

Loeb:

the stocks

Miller:
"Well, do you
danger signals in the pres¬

any

Loeb:

investigation which

will be led by Senator Fulbright's
Subcommittee?"

average.

Eugene
see

market

of this bad news?"

and

the border."

it

that

your

and economists

recession

a

market start to

little of it be¬

market goes up

a

easy

might

a

1929; and it always

me

think

be

in

stock

anri
and started to advance.

that

to

the

beginning of 1953 when

depression?

a

on

rumors?"

or

cause

specula¬

there

surprises

fail

It

reason,

whatever with

Averages,

to

saying that there

were

prob¬

that there really isn't any. And I
think everyone down there knows

measure

"Well, what

all the forecasters

started

people buying to make

many

tips

think

you

short-term

a

it

news

month in advance.

a

led

rise in the

ex¬

outlook

an

Do

Loeb:

follows:

the

was

tion?

answers

was

in

year

Some-

depends

Lesueur:

just

were

think

solve

"Mr. Loeb,
is there cannot forecast what's going to
difference, really, in invest- happen in international
affairs,
ing in tire Stock Market or specu- and a sudden change in our delating? Ivjmean, isn't everybody fense policies, a sudden
peace,
trying to make more money than would
send
the
stock
market

advance,
advance,

dividends, or if commodity So it was just about the time
that
kept going up, then there the stock market started
to go up
might be justification for it. These that
Washington started an easy
things are very closely linked."
money policy also. "Commodities

temporaneous and unrehearsed.

great

in

prices

garding the current Stock Ex¬
change situation.
The questions

Larry

market

stocks, I

there

if

date.

same

months
a

better

Manag¬
Editor of

A

stock

we

or

ciate

and

have
hap¬

would
be
headed
for
trouble. But if business was Irgher,

analyst,
Eugene

"Business

about

It

opinion

to

because people

cited

Miller, Asso¬
ing

be getting

we

then?"

the

ably

a

questioning by

and

If

went up

Larry Le¬
news

con¬

rate it's been go¬

same

six

sometimes

behind the stock market that

pens

un¬

sueur,

today, would

counts.

-

derwent

market

Loeb: "Well of course, you
to remember that it's what

York

Stock

the

up

always the

sometimes

tinues going up another year, well,

into trouble

Com¬

pany, mem¬
bers of the

.New

if the stock

the Stock Market—

on

you

Problem.'

everything

upon what peopie expect, what people think."

say at

Hut-

ton and

not

times

varies.

ing

Loeb, Partner

then

that happens. And it reflects busi- X* Lesueur:
conditions very closely, but any*

.Lesueur: "Mr. Loeb, what would

happen

"It's keyed to

traded

are

.X

;

ness

implications and effects.

the WCBS network, in the program
entitled "Longines Chronoscope,"

is it keyed to the

or

world news?"

11

Townsend, Graff & Co.

\

12

The Commercial and Financial Chronicle

(924)

Rhoades &
Co.; Merrill
Pierce, Fenner & Beane;
Salomon Bros. & Hutzler; Union

Loeb,

meetings stock¬

A

program.

&

of

number

tions

agents

underwriting

line

it desirable

make

towards

trend

the

and

multiple

to

merge

companies
and
thereby
operating expenses.

now

Audio & Video Shares

reduce

recently purchased two onestory
plants
in
Deep
River,
Connecticut, from American As¬
sociates, Providence, Rhode Island.
The 90,000 squre feet of floor sace
were purchased at a cost of about
$200,000 and will be occupied by
Emhart
or
one
of its divisions
April

Pratt-Read

in
&

for

1943

use

by

Co., Inc. in manu¬

facturing gliders and then in 1947
was
taken over by Brass Goods
Manufacturing Company. The land
consists

included

about

of

and one-half acres,

nine

with space for

parking approximately 400 cars.

the

Among

submitted

bills

to

the 1955 session of the Connecticut
General

Assembly

relating

to

several
in

are

changes

proposed

the charters of some of the State's
insurance
surance

seeks

companies. Security In¬
Company, New Haven,
increase

to

its

authorized

capital from $5,000,000 to $10,000,000

also

and

to

obtain

a

Baking

&

Co.

and

to

Lehman

Brothers is

The

terest.

debentures

convertible into
the
at

common

was

The

will

company

space

lot

at

$105

Products

Corp.

1948

to

engage

equipment.
are

in

distribution

and

located

on

the
of

Its princi¬
in

leased

N. Y.

at 730 Fifth Ave., New York,

Since its

inception, the company
only been the leading dis¬

has not

years.

tributor for Ampex Corp., but also

con¬

has
itself and
through its sub¬
sidiaries, engaged in the magnetic
tape
recording field and other

of

1965.
apply

fields.

the

proceeds from the sale of the de¬
bentures toward the redemption

by

16,

offices

of

rights on Feb. 28, 1965, a
sinking fund for the debentures
March 1,

pal

be

version

commences on

in¬

sale

incorporated in New York

will

share for the first three
termination

Video

&

manufacture

stock

company until Feb. 28, 1965,
scale prices starting at $34.50

per

the

developed

newly

electronic

March

of

and

Giving effect to the new financ¬
ing, the company has outstanding
1,740,000 shares of common stock

share, on or
out of an authorized issue of 2,1, 1955, of 125,575 of
000,000 shares.
outstanding 253,575 shares of
per

about April

.

the

dividend

$5.50

cumulative

pre¬

ferred stock. Any additional funds

required for such redemption,
well

as

the

amount

as

dividends

of

The

a

new

life insurance company,

debentures

will

be

subject

to

from

the

In

to

was

indicated

ucts.

Net sales of the company and its

consolidated

consideration is

promote flexibility and economy
of operation. Phoenix Insurance
Company
seeks to increase
its

income

$3.96

subsidiaries

ended

Dec.

for

25,

the

1953

$198,845,000 and net
was
$5,654,000, equal to

per common

share.

For the

fiscal

year ended Dec. 25,
1954,
capital
stock
from consolidated net sales were re¬
$20,000,000 to $50,000,000. There ported at
$212,510,000 and net in¬
are presently outstanding 1,000,000
come at $5,704,000, equal to $4 per
shares of $10 par common.
common share.
The latter figure
Gray Manufacturing Company is after a charge permitted for tax

authorized

has

received

an

order

from

the

purposes

under the

1954

A

its

sity

has

e s

a

tomer's

decke

the

Yale

students,
by

Contains elapsed time indicator,

maturity date indicator, interest
calculations: ordinary
(360
days), and exact interest (365
days), with conversion tables
from ordinary to exact interest;
pre-calculated answers from $1
to $500,000 and at rates from
%% to 12%—write to company
regarding trial offer—Delbridge
Calculating System, Inc., 2502-10
Sutton Avenue,
St. Louis 17,
Mo.

John

A.

Neumark

Security Dealers of North Amer¬
ica

Primary Markets w

CONNECTICUT




Completely revised 1955

and

—

listing all stock and

houses

in

United

States

Canada—geographically

ar¬

ranged— Herbert D. Seibert &
r

Co.,

Inc., 25 Park Place, New
York 7, N. Y. (fabrikoid) $12.00.

New Haven

SECURITIES

—

Edition
bond

Members New York Stock Exchange

Short Term Economic Forecasting
Studies in Income and Wealth—

New York r—REctor 2-9377
Hartford

—

JAckson

7-2669

Teletype NH 194

Volume
»

member¬

The same poll showed, he con¬
tinued, that "in the group 33 years

*

•

articles

contributed

were

free

of

charge.

Neumark,

a

19-year-old

Yale

sophomore.

Last

spring, while "heeling" the
Secondly, the students sold ad¬ business board of the "News," he
vertising in the brochure to some conceived the idea of a series of
of the
biggest investment firms brochures describing various ca¬
and banks in the nation, thus as¬ reers open to young college grad¬
suring a handsome profit to the uates. I
The

brochure

free

to

recalls.

names

George M. Hum¬

as:

the United
Randolph
Secretary ot

of

Secretary

States

Treasury;

W.

Assistant

Burgess,

After

National

17

—

A

Bureau

Report of the
of

Research—Princeton

Economic

that, "the

very

top

men

in

the field" were persuaded to
contribute articles to the pending
brochure by young Neumark, who
is the

of Mr. and Mrs. Arthur

son

J.

Neumark, of 1111 Park Avenue,
New York City.
Bush, U. S. Senator from Con¬
A.
Cushman
May, Yale Class
necticut and a partner of Brown
Bros.
Harriman
and
Company; of 1956, son of Mr. and Mrs. Byron
Bernard M. Baruch, financial ad¬ B. May, of Pembroke Road, Davisor to a number of U. S. Presi¬ rien, Conn., handled the produc¬
the

U.

S.

Prescott

Treasury;

S.

dents; William McChesney Martin,
Jr.,

Chairman

Board

the

of

of

tion

the

of

the pages

brochure, laying out

and making the

neces¬

arrangements with the print-

Governors of the Federal Reserve

sary

System; Keith Funston, President

ters.

of the New York Stock Exchange;

H.

Harold

W.

Chairman

the

of

the

of

ernors

Kenneth

Norian, '55, son of
Norian, of
176
Meadowbrook Road,: Englewood, N. J., who is Business Man¬
ager of the "Yale Daily News,"
was
general supervisor of the

newly-elected Mr. and

Scott,

Board

of

York

New

Gov¬

Stock

Exchange; John Hay Whitney,
senior partner in the firm of J. H.

Mrs. Harry K.

Whitney and Company, and many project.

Edward

Kent, Yale
Editorial Ad¬
publication,
and
Actually, the brochure of more
Charles W. Trippe, Yale Class of
than 150 pages represents a seri¬
1957, was Assistant Editor.
ous attempt to attract young men
Neumark, though pleased with
into investment banking
Class

others.

of

visor

—

CO.

Mr. Goe¬

recent poll of the

to 35
years, the average
salary
19-year-old
was $11,600."
He went on to say
Sophomore, have just published a that "in five
years the first group
handsome brochure, entitled "Wall
(25-32) anticipated a yearly in¬
Street, 1955," describing careers come of
$17,000, and the second
and job opportunities in invest¬
group (33-35) a yearly income of
ment
banking.
The
project
is
$21,656."
■■' '
noteworthy on two accounts:
i,
v
A Sophomore's Brain-Child
First, they persuaded some of
the top financiers and investment
"Wall Street
1955,* published
bankers in the country to con¬
by the Yale Daily News" is the
tribute
original
articles.
These brainchild of John A.

careers,

Internal

&

a

Association

a

where they are critically needed.
Navy Bureau of Aeronautics for Revenue Code providing for vaca¬ Federal Tax System of the United
States
A Survey of Law and
the production
of $1,338,042 of tion expenses accrued in 1954 but
Young Blood Needed
Administration
—
Joseph
P.
special electronic units consisting payable thereafter.
This charge
According to George H. Walker,
of electronic transmitting, receiv¬ was equivalent after taxes to 53c
Crockett—Columbia University
senior managing partner of the
Press, 2960 Broadway, New York
ing and amplifying equipment.
per share of common stock.
investment banking firm of G. H.
27, N. Y., $4.75.
The underwriters include: Blyth
Seymour Manufacturing Com¬
Walker and Company, a fellow of
pany which produces copper and &
Co., Inc.; The First Boston
the Yale Corporation
Revolution
in
World
Trade
—
and con¬
non-ferrous alloy sheets, wire and Corp.;
Goldman, Sachs & Co.;
of
an
Samuel Lubell—Harper & Bros., tributor
article, "a real
strips has begun a $2 million Lazard Freres & Co,; Carl M.
49 East 33rd Street, New York vacuum has been created as far
as
future
investment
16, N. Y. (cloth) $2.50.
banking

CHAS. W. SCRANTON

cus¬

showing that "for those in
the age group of 25 years to 32
years, the average yearly salary
was $7,243."

financial

headed

a

ship,

world.

These

quotes

Investment

the

in

New

representative for Smith,

Barney and (Company,

of

t-known

names

of

an

the Yale Class of 1947 and

the

of

some

Wil¬

organization of men be¬
the age of 36 in the invest¬
ment banking field. A member of

coup

support

by

low

have

business

quoted

Association

Investment

York,

Univer¬

that

statistics

liam S. Goedecke, President of the

entre¬
preneurs
at

completed

for young col¬

This opinion is backed up with

salary

young

Yale

as a career

lege graduates.

fair

of

group

phrey,

Delbridge Interest Tables—1955—

being given fiscal year
merging the two companies to aggregated

that
to

business.

companies

fire—insurance

has

campus

share.

such

—

their stockholders it

Wall Street.

Contributors of articles include

102% to par, plus accrued interest Black Market Yearbook: 1955—
capitalization would be
in each case.
Franz Pick—Pick's World Cur¬
$250,000 capital and $250,000 paid
Continental Baking Co. is the
in surplus. All shares would be
rency
Report, 75 West Street,
owned
New York 6, N. Y., $25.00
by Security. Bills have largest commercial baker of bread
and one of the largest commercial
been introduced to permit Aetna
cake
in
the
United Columbia University Press Spring
Casualty & Surety Company and bakers of
1955
The company's products
Catalogue — Columbia
Automobile Insurance Company, States.
sold
University Press, 2960 Broad¬
both partially owned subsidiaries are
principally under two
way,
New
York
27,
N.
Y.
of Aetna Life Insurance Company, widely
advertised trade names,
(paper).
to
merge with
any
other com¬ "Wonder" for its bread products,
panies doing a similar — casualty and "Hostess" for its cake prod¬
and

all banking

Conn.—Not

are on

vestment firms.

minimum

letters

career

will be
Among his initial consultants
students at were Mr. Funston, Senator Bush,
Yale, Harvard, Princeton, Penn¬ Mr. Baruch and Mr. Whitney. "I
sylvania, to college placement^of¬ was surprised that such incredibly
ficers, and to more than 1,000 in¬ busy men would speak to me," he

redemption at regular redemp¬
tion prices ranging from 105% to
Security-Connecticut Life Insur¬
par, and for the sinking fund be¬
ance Company. There are no plans
ginning on March 1, 1965, at re¬
as yet to organize the new com¬
running
from
pany,
but the
proposed initial demption prices
for

HAVEN,

college

distributed

funds.

eral

The

students.

the redeemed shares, will be
supplied from the company's gen¬
on

charter

NEW

the

on

business brains

b

Audio

ordinated

due

expand

equipment; and for
working capital.

June

debentures

and

strumentation

offering $13,000,000 of
Continental Baking Co. 3%% sub¬
1, 1980, at 102% and accrued in¬

promote

manufacture

company's

syndicate jointly managed by

building was Following

The

1.

constructed

A

Wertheim

has

the

Debentures Offered

these

Emhart Manufacturing Company

after

Continental

elaborate financial supplement put

on world of finance, and in
outlook. Opportunities for young men
for leadership in Wall Street are stressed. Contributors of vari¬
ous articles, under
editorship of John A. Neumark, include high
authorities in Government, investment banking, the Stock Ex¬
change, and industry.
*\

particular,

Townsend, Graff Sells

gations;

per

an

gives students broad information

*

company,
removal of these restric¬

the

but

Company

Street, 1955,"

by "The Yale Daily News," undergraduate publication

out

Co.

of
White surface finish and to hold ma¬
The recent offering of 450,000
Plains, New York, will vote on terial to closer tolerances, as well shares of common stock (par one
plans to merge with Phoenix, the as to improve efficiency and en¬ cent) of Audio & Video Products
parent company, as the survivor. large capacity.
Corp. at 30 cents per share by
The
other
three
companies are
Plans have been announced by
Townsend, Graff & Co., New York,
Hartford
Gas
among the smaller in the Phoenix The
Company to has been
completed, all of said
of
Hartford
Group and do not offer
$1,500,000
of
convertible shares having been sold.
The
have sufficient capital to qualify debentures to preferred and com¬
stock was offered as a specula¬
for multiple line underwriting in mon stockholders through rights to
tion.
all states where they do business. purchase debentures at the rate of
The net proceeds are to be used
Until recent years there were laws $25 of par value for each three
in
certain
areas
restricting the shares owned.
to reduce accounts payable obli¬
Insurance

In "Wall

White, Weld

Securities Corp.; and
modernization

large
holders
of
Phoenix
Insurance part
of the present sheet ,and
Company, Central States Fire In¬ strip production line will be re¬
surance
Company
of
Wichita, placed with new continuous pro¬
Kansas, Atlantic Fire Insurance duction rolling, heat-treating and
machinery.
The
new
Company of Raleigh, North Caro¬ slitting
lina, ; and
Great
Eastern
Fire process is expected to improve
At their annual

Yale and Wall Street

Lyrich,

Connecticut Brevities

Thursday, February 24, 1955

...

the

1956,

for

A.

was

the

of the venture and im¬

success

pressed with the opportunities for

bright

young

ment

banking

in the invest¬
field,
still
isn't
looking forward to a Wall Street
men

career.

"I'm

lishing

planning to enter the pub¬
business," he says.

Two With Merrill Lynch
(Special to The Financial Chronicle)

concerned.
Most
ST. LOUIS, Mo.—Malcolm W.
run by partners,
Dooley and Quintus L. Drennan,
none of whom is younger than 50
Jr. are now with Merrill Lynch,
to 55 years of age."
Pierce, Fenner & Beane, 511 Lo¬
He attributes the "20-year-void"
cust Street.
of younger men in the investment
banking field to the great depres¬
sion of the early 1930's which, he
With Newhard, Cook
said, produced an image of Wall
(Special to The Financial Chronicle)
Street "as a dead-end place to be
ST.
LOUIS, Mo. —Frank H.
avoided at all costs as far as young
leadership

firms

is

today

are

b

men were

tinues,

University
Press, Princeton, N. J. (cloth)

American

$7.50.

the

concerned.

the

vastly

economy

attractiveness

But, he con¬
-

expanding

Hamilton

has enhanced New
of

investment

has

become

connected

with Newhard, Cook & Co., Fourth
& Olive Streets, members of the
York

Exchanges.

and

Midwest

Stock

Volume

Number 5406

181

..

.

The Commercial and Financial Chronicle

-prices.

More

Different

Fourth, Revolution
in retailing will be forced upon
us
by the automobiles. Simple
arithmetic proves that the present
,

The next,r or

race

to make "the mostest and the

largest" automobiles, with insuf¬
ficient increase in highways can¬

By ROGER W. BABSON

Mr. Babsoii calls attention to the

true

great changes in merchandising
since 1875, and notes operations

did

houses"

have

brought on a new revolution.
Says suburban shopping centers
may remedy retailing difficulties,
but points out there may be a
new development through more
extended use of telephone* and
and more newspaper advertising

is

much

continue

not

"discount

know.

cities differ.

Merchants,
Advertising,
Telephoning

of

I don't

(925)

that

new

we

are

longer.

It

is

building splen¬

toll roads; but very little

being done to avoid congestion

in

cities

chants.
some

to

and

help

Otherwise,

local

mer¬

people

may

day cease using automobiles

for

shopping.

may

remain in the garage except

for

These

machines

trips—as mother's sewing

chine is

now

seldom used.

ma¬

I

the present

wil

result

in

customers; which,

buying from their homes soon by
telephone, and later by television.
Increased newspaper advertising
with many more newspaper pic¬
tures of products for sale, supple¬
mented by better telephone serv¬
ice, will become the custom. Peo¬
ple are now sick of hunting for
places to park their cars when
shopping. People will think of the
risk and gasoline costs of driving
to Shopping
Centers.
The time
may come when 80% of the shop¬
pers will sit at home in a com¬
fortable chair, study the
news¬
paper
advertisements,
and
do
their ordering by telephone.
Newspaper, advertising

telephones

.are

In fact, I believe* the

stocks

forecast that this Foufttf'Re¬

volution

increased1 automobile

congestion.

Advertising and
Telephoning*

the only

and

cure

.

for

Joins Bache Staff
(Special to The Financial Chronicle)

certain 'newspapers—

of

KANSAS CITY, Mo.—Seymour
is now ..associated with

temporarily in the
stocks of telephone

are now

dumps—plus

Krinsky

Bache & Co., 1000 Baltimore Ave.

companies, preferably the wide¬
awake Independents, are among
today's best "buys." (Local barikers please take notice!) Further¬
more, I am investing my hard-

Joins

Quincy Cass

(Special to The Financial Chronicle)

LOS ANGELES, Calif. — Marie
E. Magner has joined the staff of

earned money in "United Stores"
stocks (listed on the New York
and

Quincy Cass Associates, 523 West
Street, members of the Los
Angeles Stock Exchange.

American Stock Exchanges).

Sixth

A

company has recently organ¬
ized a new corporation to profit
from this coming Fourth Revolu¬

First California Adds

tion.

(Special to The Financial Chronicle)

With Walston Co.

LOS

ANGELES,

LOS ANGELES, Calif .—John R.
Singleton is now with Walston &

Ryder has been added to the
staff of First California Company,
647 South Spring Street. He was

Co., 550 South Spring Street.

formerly with Schwabacher & Co.

YEAB

Preceding those days there

were
mail order

no

houses

or

de-

t m en t
stores, few
P 3k t

chain stores

(A & P had 50
which

stores
carried

only
tea, coffe, and

| crockery),
sale
and

but

whole¬

many

independ¬

ent merchants.

They
were
doing 95% of
the

.

_

_

Roger W. Babson

father

was

retail

business.

ing was brought

houses.

Annual Report, give the details.

Optimism for C&O in 1955 is highlighted by recent events—

of these in Glou¬

one

Stores

on

by the depart¬
mail

and

January earnings of 46 cents

•

February earnings will show

•

Coal traffic, particularly export, continues

•

Merchandise freight revenues

order

This made it unnecessary
different stores, if

lived in

city, while, if

a

lived in the country, you
shop by mail from

The

Second

the

the

out

ment

an improvement

were up

50%

over

January, 1954.

greater than 50% over February, 1954.

upward.

could

running higher than last year.

are

your

Revolution

chain

a common

you

farm. This
Revolution
was
desperately
fought by the old-time retailers.
with

share

•

to visit several
you

has just been scored by Chesapeake

and Ohio. The highlights hereinafter shown from C&O's 1954

M y

cester, Massachusetts.
The First Revolution in retail¬
ment

Another year of profit and progress

houses

•

Illustrative of C&O's optimism is

the decision just announced to build

bulk-materials handling pier at Newport News,

a new

Va. This investment of $8.3 million

came

stores, which cut

will bring additional freight revenues of $4.6 million annually.

wholesalers.

The depart¬
continued
to
buy

stores

through

wholesalers;
but
the
direct from the
manufacturers. Hence, they were
fought by legislation and taxation

chains

bought

1954

HIGHLIGHTS

enacted at the demand of the mid¬

dlemen.

Discount Houses

Third

The

Now the

Target

Revolution

is

Earnings

now

houses."

This is

an

effect

to

share of

common

stock and $3.50

common

re¬

stock

were

$5.01, third highest

The regular $3 annual dividend on

preferred

on

were

prices by cutting out
the bureaucracy, high rents, and

Merchandise traffic

overhead developed
by the department stores.
unnecessary

But

ahead of
This

are

temporarily

met

ally

building,
It

ters."

development activities brought 110

to C&O's line in the year.

being

contributing 51% of freight

expected to be increased by 10% in 1955.

Industrial

us.

is

of $143 million for the first time

revenues,

operating revenues. Coal and coke revenues of $138 million

Fourth

a

revenues

surpassed coal and coke

Revolution, as a
revolt
against
parking
meters,
automobile congestion, and a lack
of sufficient free parking, is just

pew "Shopping Cen¬
is reported that Allied

are

New

expected from these

revenues

new

Capital improvements cost only $15 million,
million in 1953 and

$$5 million

industries
annu¬

businesses.

this purpose. Shopping Cen¬
ters, however, will be only a half-

for

new

of $4 milliori

Stores Is to spetnd over $200,000,000

in

as

against $50

1952. The large post-war

improvement program is behind us.

cure. Wanamakers, which
the World's largest depart¬
ment store when I was a boy, has
wa

amply covered.

retail

duce

by

a

in the last thirteen years.

being caused by the "discount

on,

y

was

thrown

in the sponge

Debt

was

decreased by $24 million. No new

ment securities totaled $50 million.

current liabilities

Shopping Centers Just

Ahead

.i •«

was

incurred.

Working capital increased. At the year-end, cash and govern¬

houses.
New

debt

in its fight

against automobiles and discount

save one

Shoppings Centers offer
free
parking 'and "self-service,"
but
the high rents may result in high¬
prices. Anyway, customers who
Shopping Centers are more
dependent On automobiles than if
er

use

in the

Current assets exceeded

by $40 million, the highest yegrend balance^

company's history.

Chesapeake and Ohio acknowledges With sincere thanks the interest and help
of all who contributed towards

making 1954 the good year that it was,

they patronized the old downtown
merchants.
would

fairly,
stores

In

fact, if city officials

treat

the

their„ bus
present

would

systems

downtown

continue

to

give

better service and perhaps under¬
sell

the

new

Shopping




Center

You may

have

a copy

of the 1954 Annual Beport. Just write:

CHESAPEAKE and OHIO RAILWAY
Terminal Tower

Calif.—Oliver

A.

(Special to The Financial Chronicle)

and pictures.

Merchandising at the retail
level has already passed through
Three
Revolutions
since
1875.

13

•

Cleveland 1, Ohio

14

The Commercial and Financial Chronicle

(926)

Continued

(Institute of Investment Banking

April 4

To Be Held Starting
of

of

Institute

the

tive

Investment Banking will be held
at the University of Pennsylvania,

Third

Philadelphia, during the week of
April 4, it was announced by
Walter

A.

Schmidt,

Small Business.
Long Run Trends in Corporate
Financing

Sponsored

by

Education-

the

the

School

Wharton

and

tute

provides

tive

Portfolio Management.

three year execu¬
program.
It is
other

and

firms

member

soned

groomed
Under

Institute

the

registrants

are

series

of

classes

integrated

First,

on

Toll

university campus for one
week each spring for three con¬
secutive years.
Upon completion
tificate

is

Merit

of

in

An

recognition of specialized train¬
in
the investment banking

is be¬
ing offered for the first time this
year and the Institute will hold
its first graduation exercises on
year

program

the

concluding day, April 8.
an outgrowth of
the Investment Banking Seminars
in

Philadelphia
sponsorship
in

Private

same

The

Seminars

week

refresher

1952.
one

1951

seasoned

personnel.

ment in executive

a

ment.

expanded

fice

program

of

was

the

through

the

of

Banking to provide

the

1951 and
creased

143

for

the

stitute and 191 for the

1953

Bankers

Association

of

Street,

LOS

1954 Insti¬

mond

ANGELES, Calif.
H.

A.

Brandt

ler &

Education

and

head

of

the

Ray¬
with

Committee,

Committee,

Institute

is in

charge

With

of

Significant

topics

the

on

is

Year

Draper, Sears & Co.,
Congress Street, members of

the

Program

with

ing Personnel.
The Approach to
Selling; Po¬
tentialities and Administration of
Direct Mail Promotion.,

Tools

Management

of

IBA.

Control

Secu¬

rities Firms—A Panel Discussion.
Trends

in

Over-the-C

Markets; New

Forces

o u n

in

t

e r

Securi¬

ties Markets.

Tools

of

Economic
of

the

Level

Investment

—

Sig¬

Canadian

Companies.

Second

Year

Institutional

du

of

the

Stock
was

Investment

New

Street,

York

members

and

Boston

Exchanges.
Mr. Barrows
formerly with Harris, UpCo. and

Hunnewell

Banking System and the Money
Market; Government and Interest
Bates; Interest Rate Determinants

&

Co.

BOSTON, Mass.

—

Arthur H.

Dyer and Robert L. Matthews
connected

now

Co.,

15

State

New

are

with Estabrook &

Street, members of

York

Boston

and

*

/riting;
Syndicate
Techniques;
trading; Public Offering of Stock
i .i a Privately Owned
Company—

stantial

Stock

quarter of a century ago.

funds

investment

were

spending channels. Many billion
dollars were spent by the gov¬
ernment

to

business

prime

but to

pump,

the
avail.

no

period

periods of severe busin e s s
depression,
deflationary
forces eventually ran their course,
accumulated

shortages

pro¬

vided the stimulus for the unturn

By 1934 the

in industrial activity.

ready to move for¬

was

It had demonstrated vigor¬

underlying strength.
There
huge spent-up demand and

a

credit

chilling to

business

But

resources.

the prevailing government

climate

taking, and
did not come

risk

recovery

until the advent of World War II.

lessons to

The

tragic '30's

learned

be

from

that we must

are

initiative and ingenuity as

well

incentives for the
sumption of risks, for these
the pillars upon which our

provide

has

been

built

as¬

are

reduced

by more than 10%.
Educational" opportunities
have
been availed of to an increasing
been

school

high

of

13%

and

2.5

of college

Fundamental

by

gains have been made
standards of living since

our

indicated by an increase
per capita real income
during this period. Today nearly
60% of the families own their own

total

of

Further

income.

national

.

evidence

changes in the share

is indicated by the pay

of income

of factory and

salaried employees.
While
in
1929,
white - collared
workers on the average received
about 75%

day

income than the

more

for manual

average

receive

they

workers,

less

than

weekly basis

pay

wage

to¬

on

a

earners.

Those in the income groups under

$5,000

a

thirds

of

receive about two-

year

income

total

account

and

proportion

for

after

taxes

the

same

about

of total

bution

income

of

in

the

rise

in

other

to

payments

wage

of

sources

redistribution

continue

the

income

out that if

of

income

same

pace

as

it

1929, the country would
of

course

be

on

basis,- with

all

a

of

quarter

a

equalitarian
persons receiving
an

amount of income. Such

development would lead to the

distribution of poverty.

in

48%

against

1929.

About 98% of the homes are serv¬

by

electricity,

75%

in

Mechanical

the

as

compared

earlier

period.

is now
90% of all households, while
years ago only 4%
had this
refrigeration

McGrath
with

has

Gibbs

become

&

Investors

Co.,

affiliated

507 Main St.

dynamic economy.

our

forces compelling the
provide for pressing
needs is the vigorous population
growth. In the last quarter of a

strongest
economy

to

century the number of persons in
this

country
has
increased
by
about 42 million, or equivalent to

Planning Adds

BOSTON, Mass.
Britton
are

now

and

—

Donald

Sumner E.

J.

Robinson

associated with Investors

Planning
Corporation
of
New
England, Inc., 68 Devonshire St.

population of France.

provide for the grow¬

around

ing

in

it

125

million

United
as

all

are

radio

States,

12

now

sets

times

as

the

many

25 years ago and more than
of the

rest

of the

world

in

com¬

bined., The number of television
sets
at

in

35

none

this

million,
a

is estimated
while there were

country

quarter of

a

century ago.

of

migration
in the in¬

during the last decade and
of 36% in the number of

crease

half

living in the suburbs, as
gain of only 14% in the
Sheer necessity has

a

central cities.

industries

forced

to speed

work

habilitation

re¬

up

stemming from

and obsolescence of
equipment in order to
cut costs to meet rugged competi¬
tion. Pressing challenges are met
depreciation
and

plant

in

For in¬
the threatened exhaustion
comparatively short time of

a

fuel and water supply by the

our

demand

tremendous

of

util¬

our

ities for electric power will be re¬

lieved
As

by atomic energy.
there

indicated,

strong

are

upward pressures by fundamental
that

forces

driving business

are

The industries and firms

vision
made

and

aggressiveness

long-range

plans

to

capitalize on the beckoning op¬
portunities in
risk-taking
ven¬
tures.

These plans are based upon

projections
that
center
population growth and
logical development.

around
techno¬

Pattern of Rigidity Being

;•

Developed
While

strong underlying forces

business forward,
injecting elements

propelling

are

other forces

are

of

that
with

rigidity

pattern

blighting
economy.

moulding a
repressing and
influence upon our
This rigidity is being

evidenced

in

are

business

affairs.

policy and high taxes
causing a rapid growth in cor¬
porate debt financing.
Borrow¬
ing through the sale of bonds has

Easy

money

are

been

rates

of

the

low

funds

while

since

interest

deductible from Fed¬

are

with the

faxes,

economical

most

obtaining

are

charges
eral

is

and

means

consequence

that the cost of borrowed funds is

substantially less than equity fi¬
nancing. About 77% of total ex¬
ternal
funds
of
corporations in
1954

from sales of bonds and

were

notes,

against

as

Since

interest

26%

in

payments

1929,

on

debt

charges and have

fixed

ferred

pre¬

claims,

significant de¬
cline in income can impose quite
a
burden on many lines of busi¬
When

dominates
our

any

debt

financing pre¬
equity financing,
economy
becomes
rigid and increasingly vul¬

ness.

over

business

more

nerable

to

unfavorable

any

ing population and a modest in¬
crease
in housing space in keep¬

with
is

rising

living

standards,

that

estimated

de¬

is

ways,

30

six

rising

than

years.

which

million

The flow of

cars

much, faster pace
development of high¬

at

the

a

are

cars

The

most

working

rigidity

powerful

toward
are

Shaping

Economy

a

influences
pattern

of

brought about by the

government through excessive in¬

terference,

red

tape,

regulations,
discriminatory
of rises
in wage rates beyond productiv¬
ity, as well as by stifling of new
ideas,
inventions, facilities, and
any other factors that would have
exorbitant

taxation,

a

and

encouragement

restrictive

influence

upon

the

additional

dwelling units averaging a million
annually would be needed for the
next

Our

Ore of the

In order to

There

is

Role of Government in

the current

1929.

this

reflected

extent

The

movement

s.

Propelling Forces

facility. The number of
telephones per 100 people is now
over 30, or double the proportion

modern

homes,

velopment.

of

WORCESTER, Mass.—Leroy D.

creates markets
and builds new

economy,

new

communities.

Propelling forces are at work in

in

as

for

are

the

at

same

rela¬

progressive income tax.

It should be pointed

a

25

past

is largely accounted for by

years

the

ex¬

consumer

This striking redistri¬

penditures.

as

homes,

the

of

declined from 6.6% to 3.3% of

ers

squashing of the pyramid and the

of 60%

25

our

proportion of total disposable
income received by those in the
top 5% group has been cut in half
since
1929.
During this period,
dividend payments to stockhold¬

came

in

in

changes

The

which

force.

contributes much to the dynamics

have

Income

have been accompanied
revolutionary redistribution
among various groups.

a

century

a

of

income

in

governmental
major stimulating

Mobility of population

in history.

forward.

period.

economy

progress,

huge

The migration of people

within the country is the greatest

with

social

in the last decade and

the

on

are

sign of healthy

a

learn¬

graduates has increased

Redistribution

-

has been substantial economic and

expenditures

higher

2.5-fold in the 25 year

has since

with

of

million, while the number

the last quarter of a century

practically all of

is

This

growth.

ing has increased from 1.1 million

the

half,

in

enrollment

The

1929.

in

institutions

World War, with subsequent
critical international tensions,, in

a

has

graduates

constitutes 42%

now

adult population, as against

our

prolonged depression

there

industries

economy,

stance,

and to the

a

penditures will begin to show out¬
In our dynamic

standing results.

by science and ingenuity.

by a large proportion oi
population.
During the past

quarter of a century the number

tive

a

the

at

stage where the huge postwar ex¬

extent

the

Gains

blaz¬

unlimited

about

are

our

sys¬

which it cannot survive.

Despite

provid¬

to

ing material benefits to the peo¬
ple.
Work-week schedules have

We

are

with

trails

new

against

as

without

and

confined

been

ing

horizons.

persons

during this

scientists

the 1920's. Our

a

Gains

Social

of

In other

iced

Joins Gibbs & Co.

a

Nor has the progress

siphoned by the government and
through its numerous

with

(Special to The Financial Chronicle)

nearly 3.4 times as much

or

as

to

the

invested

have been

sums

protective
coverage.
The
amount of ordinary and group life
insurance held by the American
in

$285 million, or only 12% as much
as for the period
1923-1929. Most

1929,

(Special to The Financial Chronicle)

Under-

million

10

around

the American peo¬

progress

unparalleled.
Expenditures
for
scientific
and
engineering
re¬
search
this
year
amounted
to
around $4 billion or four times as
much as for the entire decade of

march.

with facilities
that make for more pleasant and
comfortable living, but also sub¬

our

tem

threefold in¬

equipped

well

1939, the amount of new corporate
stock
issues
averaged annually

was

a

1929.

Not only are

ple

doubled

was

is estimated at

billion,

over

crease

of

ous

in the United

are

this year

around $15

capital was reduced to
a trickle.
From 1933, the advent
of the New Deal, to the end of

in

(Special to The Financial Chronicle)

and Projections.

Problems:

unemploy¬

and

prevailed

Marked

Prac¬

Mutual Funds; Pension Funds.




Homsey^& Com¬

Milk

Exchanges.

Commerical
and
Savings
Banks; Fire and Casualty Compa¬
nies; Life Insurance Companies;

Case Study.

affiliated

Two With Estahrook

the

Program

of exorbitant
spending, stag¬

means

deficit

hovered

and

cars

world's

the

of

The amount spent for re¬

creation

at the close of the 1930's. The flow

and

Carlton H.

—

a

of venture

Homsey

become

Pont,

31

pany,

tices:

Operational

has

Barrows

of

Developments,

Sponsored

previously
& Co.

Moseley

by

and

taxes

Analysis;

Companies

Recent

Stock

was

BOSTON, Mass.

.

bilization.

American

He

S.

Boston

(Special to The Financial Chronicle)

Business Activity; Economic Sta¬
Investment

and

to provide

taken

Economic

ham &

Determinants

nificant

F.

with
of

York

Joins du Pont,

Public

motional

New

Exchanges.

Recruiting, Selecting and Train¬

Relations; Securities
Advertising; Education and Pro¬

with

now

50

maturity..

keep alive within the framework
of
our
economy
the
spirit
oi

BOSTON, Mass.—Alan T. Shaw

pro¬

gram include:

Firet

Draper, Sears

(Special to The Financial Chronicle)

project.

had come
since our

reached

merely aggravated the situa¬
tion.
With the redistribution of

the

Plan¬

progress

of

measures

abundant

—

Dofflemyre & Co., 634
South Spring Street, members of
the Los Angeles Stock Exchange.

Mead of Mead, Mil¬
Co., Baltimore, Chairman of

IBA

passenger

contended by

was

had

economy

now

is

Three-fourths

per

lion,

cure

ward.

Marache,

the

i\

the

on

(Special to The Financial Chronicle)

In¬

W. Carroll

the

information

With Marache, Dofflemyre

in

tute.

ning

Washington Of¬

at¬

men

offered

and enrollment in¬

1952
to

100

Seminars

mailed

America, 425 Thirteenth
Washington 4, D. C.

more comprehensive training
opportunity.

Approximately

be

rpay be obtained from
Educational Director, Invest¬

ment

permanent

and

tended

should

28.

distributed

before Monday, Feb. 28.

on or

the

Investment
a

a

ses¬

Institute

establishment

Institute

$185

meals, and entertain¬
Applications accompanied

Additional

in

is

fee

end

the

of

room,

to .reach the IBA

industry that

the

for

all Institute

covers

remittance

by

was so

well received by the
1953

and

sions,

This experi¬

training

enrollment

The
year

for

course

Potentialities

the Investment Banker.

and

provided

Acts.

Analysis; Economic

Challenging

It

depression.

ment

cars

people is placed at over $285 bil¬

prosperity of the 1920's was
followed by a prolonged business

nation

Foreign Investments.

Investment

for

Maturity

Industrial

wealth

Prog¬

Outlook.

the

under

Securities

vised

The Institute is

held

In¬

and

of the Transpor¬
Airlines; Ocean

Industry:

implications

future.

The

Panel

Shipping; Railroads; Trucking.
New Regulations under the Re¬

business.
third

Legal,

Appraisal

tation

ing

The

Year

Atomic Energy..

in

ress

their

as

Government Policies Based on

to

Economic

and

well

to

note

economy

vestment Banking Phases.

Industrial

in

glance over this epoch
changes and tendencies
economic and social patterns,

timely
and

ger

progress

those in power that we

Financing—A

Road

Engineering,

on

Cer¬

awarded

Invest¬

Third

and

Second

the

cf the three years program a

of

Joint Sessions

attend

in the quarter of
a
century that has passed since
the
1929 debacle.
It should be

nomic

the number of passen¬
100 persons in this
country has increased from 19 to
Since 1929,

States.

be pertinent at this stage
to review the highlights on eco¬

The

Banking Personnel.

the

in

and

Penn-Sherwood Hotel
a

program

auartered

produc¬

industrial

Pub¬

Services

Placement

Recruitment

the

and
ment

and

income

consumer

It may

Produc¬

and

Writing

University

responsibility.

in

tion, and sales.

Promotional

and

ing Promotional Literature.

are

may

expenditures,

the

Integrated

an

Relations

Campaign;

sea¬

being
for positions of greater
who

personnel

of

Review
lic

designed for partners and officers
of

Economic

Changes.

Insti¬

development

a

Im¬

Policy; Investment

plication of Long Run

Fi¬

of

the

Commerce,

1955

as

Financial

Committee of IBA in cooperat'on

nance

Investor.1

States

America.

with

Decisions;

eign Tax Systems and the United

of

Association

Bankers

Individual

on

Removing
Barriers to investment; For¬

Tax

Schmidt, Poole, Roberts & Parke,
Philadelphia, President of the In¬
vestment

Taxes

of

Effects

Investment

Partner,

international
that
establish a new high
the

in

million.
has been

55

over

Technological

situation, indications now are
record

Program

Year

worsening

Thursday, February 24, 1955

.

accommodate

jrom page 3

The State of the Nation

Appraisal of Municipal Credits.
Legal, Regulatory and Legisla¬
Problems: Self-Regulation.

WASHINTON, D. C.—The third
annual session

.

.

built for

but

are

about

forced

to

American economy.
Under

1946,

the

the

Employment

government

is

Act

of

charged

with the responsibility of promot¬

ing "maximum employment, pro¬
and purchasing power."

duction,

This has been interpreted to mean
that

the

Federal

Government

is

Volume

181

Number 5406

.

.

.

The Commercial and Financial Chronicle

(927)
committed

take

to

steps to maintain

the

Joins Waldron Staff

necessary-

prosperous

ment.

cies

Monetary and fiscal
used

are

in

poli¬
keep

effort to

an

the economy on an even keel. Be¬
cause
of
poliitcal pressure, the

tendency of governmental policies
is

to

favor

business.

the

upward

Whenever

slackness there
for

"nudge"

a

for

(Special to The Financial Chronicle)

slowness

has

of

and

cry

brakes.

the

business.

Ac¬

&

—

Albert

R.

Dorow, Jr., is now connected with
Straus, Blosser & McDowell,
Bankers Equitable Building.

Mamaroneck Avenue to engage in

securities

a

firm

FIF Management Adds
With Carroll, Kirchner
.

.(Special to The Financial Chronicle)

DENVER,

DENVER,

Colo.—Everett

E.

Steele has been added to the staff
of Carroll,
Kirchner & Jaquith,
Inc., Denver Club Building.

Sehreiner
FIF

has

business

the

under

FORT

of James M. Lober Co.

name

BROOKLYN, N. Y.
Salant is engaging in

Colo.—William F.

joined the staff of

business from offices

Management Corporation, 444

nue

Sherman Street.

T

Opens

MONTGOMERY, N. Y.—

Alexander G. Sand is
engaging in
a
securities business from offices
at Cosmo Park.

Security Planning Formed

Philip Salant Opens

Chronicle)

(Special to The Financial

A. G. Sand

PLAINS, N. Y.—James
M. Lober has opened offices at 76

the

under

a

securities

at 386

name

Security

Philip

—

of

has

been

10

East

Ave¬

Philip

Salant Company.

City,

Planning
formed

40th

to

Corporation

with

Street,
in

engage

offices

New
a

at

York

securities

business.

in

beyond

The

with Waldron

now

Company, Russ Building. He was
previously with Coombs & Co. of
Los Angeles.

Mich.

Opens

WHITE

there

years

expansion

supply

DETROIT,

FRANCISCO, Calif.—Ray

C. Moore is

James M. Lober

(Special to The Financial Chronicle)

„

of

accelerator

the

steady

a

money

needs

the

on
on

over

been

hue

a

SAN

any

or

quickness

but

cordingly,

tide

there is

stimulation by
Official action calls

government.

the

is

With Straus, Blosser

con¬

ditions and virtually full employ¬

15

the

is
only inflationary, with the re¬
sultant depreciation in the pur¬
process

not

chasing

of the

power

dollar,

but

also it greatly restricts the capac¬

ity to make
In

the

way to

in

ed

corrections.

necessary

long

maladjustments

run,

accumulate

that

could

stagnation,
of

some

the

the

lead

has happen¬

as

economies

of

Europe.
*

•

...

Adherence

to

Fundamental

Prin¬

ciples Essential to Progress
A
a

review

of

the last quarter of

century indicates that the great¬

est threat to

political

economic progress is

for the govern¬
its monetary and fis¬

pressure

ment to

use

cal policies as instrumentalities to
provide for security and the eco¬

nomic needs of the American
peo¬

ple.

Such

way

for

mandate

a

planned

a

other

some

form

the

paves

economv

or

of

collectivism
with its inevitable restrictions and
lower living standards. Continua¬
tion

of

economic

our

calls for

progress

dynamic economy with
requisites of economic free¬

its

a

dom, reasonable profits, adequate
venture capital, free
markets, and
sound

governmental

financial
Over the years, the polit¬
in Washington
has
shown considerable variation. At

policies.
ical

climate

present

the

able

free

to

atmosphere

is- being

regulation
while

is

favor¬

enterprise. Business
given a chance at self-

through

competition,

more

adequate incentives
are being provided
for risk tak¬
ing, which is the mainspring of
progress.

Under

tions,

these

business

by solving its
through

ployment,

and

the country.
irf

tury

ihe

will

do

condi¬

its

and

ingenuity

level' of

support

the

best

The

interest
of

course

be

em¬

can

people and

busi¬

a

cen¬

determined

their government

the fundamental

to

ciples -responsible

for

prin¬

our

cess

0 welcome guest in homes today
is

familiar favorite in

a^ new

drinks in tin

cans

put the sparkle in

many a party.

The

the

one

use

of tin

cans

for

con¬

of the newest advances in

soft-drink

business.

Cans

offer

many

advantages: They

carry,

(Special to The Financial Chronicle)

to chill, to store, and finally to

easier to

are

BOSTON, Mass. — Thomas G.
Ronayne has become associated

dispose of. And, because^'tin cans"

with

actually about 99

Co.,

Zero

formerly

Brothers

Court

with

Securities

Street.

Jackson

He
&

was

These

pany.

to

Staff

soft-drink

(Special to The Financial Chronicle)

_

BOSTON, Mass.
Traynor has been
staff

eral

of

Laidlaw

added

&

sources

Henry

—

B.

to

over

the

Co., 80 Fed¬

Street.

as

are

cent steel, they

a

in

cans

predict

a

1954.

consumer

Teamwork Creates

(Special to The Financial Chronicle)

The

DETROIT, Mich. — Robert F.
Taylor is now with Baker,
Simor.ds & Co., Buhl
Building,
members

of

the

Detroit

Stock

SAN
thur

E.

FRANCISCO,
Cook

has

Calif.—Ar¬

become

drink flavors marketed

ferent

Sutter

Street.

He

soft-

and

container

requirements.
The

each year—and

of the

soft-drink

can

many

companies in solving these

and

canner

alike.

a

New Product

development of soft-drink

National Steel, of course, is not in the

ness.

or

respects. In
use

of tin

can

relatively few

a

in

many

the

years

for beer has skyrocketed,

cans

on

plate to the country's

men

tomers to

work

a

more

substantially raised

our

living.

example of'the
made

America's great

leading

can

SEVEN
WELDED

are

just the

many

modern

possible

steel—

by

bargain metal.

produc¬

Great

Steel

cus¬

develop the precise kinds of
needed to produce

than 35 billion tin

cans

GREAT

Lakes Steel

Company

St.ran-Steel

•

•

SI R ICTIJ R E

Corporation

•

Weirton

I lamia Iron Ore Company

Division

Products Company

Corporation

DIVISIONS

INTO ONE COMPLETE

STE EL-M AKING

manufac¬

closely with their

steel and tin plate
the

our

the battlefield, it has reduced'

And canned soft drinks

supplier of hot dipped and electrolytic

tion

it has proved,

housewife, it has fed

can-manufacturing busi¬

National's role is that of

turers. National research and

cans

troops

products

Sleei in the Starring Role

can

qualities de¬

boon to the

newest

complex problems.

plate

steel and

Canning has made possible the

wonders of exploration,

food costs and

and

means

zation could not exist without the tinr
can.

standard of

manufacturers,

of tin

t

steel

can

that

about

consume

more

It has been said that modern civili¬

resulted from the close teamwork of the

mills,

or

lots of it.

a

success

cans

•

•

National

Steel

The Hanna Furnace

National Mines Cor {Miration

made

that last year about six and one-half

billion beer

cans

The current
soft drinks is

were

produced.

development of

an

for

NATIONAL STEEL

suc¬

GRANT BUILDING

cans

outgrowth of the

CORPORATION
PITTSBURGH, PA.

was

Co.,
pre¬

viously with Blyth & Co., Inc.




characteristics

or more

today has dif¬

Tin

year.

four million tons

associ¬

ated with William R. Staats
Ill

and greater acidity called for

soft-drink

for the tin

parallels that of the beer

so

(Special to The Financial Ch*onic_e) ~

problems. Higher

every

•

Exchange.

Now With Wm. R. Staats

many new

rials. And each of the 21

tin

With Baker, Simonds

posed

pressures

Industry

tremendous increase

container has many

by

can,

tlfough similar to the beer

estimated 750 million

an

the next few years,

manded

canning beer. However, the soft',

soft-drink

advantages account for the

production of

Laidlaw Adds

per

unbreakable.

are

Com¬

in

drink can,

special steels and different lining mate¬

growing

tainers is

With Keller Bros. Sees.

a

package. Across the land/ soft

great

economic growth.

Keller

Sparkle* in the Party

of

by the extent to which the Ameri¬

adhere

Soft Drinks that Put

policies

next quarter of

largely

part

problems, and

high

a

for

are

ness

own

initiative

provide for

that

favorable
must

0'

16

sionally stumbled to provide

THE MARKET... AND YOU
By

WALLACE

It illustrated the recent popu¬

Senator

in that in
less than a year of trading it
nevertheless at the high had

witnesses

larity for the

STREETE

of

choice

this

cing

their

breakout

into

But since then it
pushing ahead quiet¬

news.

heeding a break in has been
or
of following the ly in fair

London
rails

the

well

as

price

its

over

from

J.

Senator

W.

General Motors-du

Chicago,
111.,
and
Ronald E.
Kaehler, President, San Francisco
Stock Exchange, San Francisco,

(D.,

Fulbright

study

Calif.

on

March 8

Commit¬

tee's

The

E.

Harold

—

Wood,

Chairman, National Association of
Securities Dealers, and President

"'v

of
■■■

the stock

with 20 expert

finance and business.

of government,

areas

that hearings

announced

the

*

❖

❖

Start March 3

Fulbright sets 15 days of hearings

Ark.), Chairman of the Senate
Banking and Currency Commit¬
tee,

1954-55 low.

foul mar¬

as

ket weather.

group

the

doubled

Stocks had

Thursday, February 24, 1955

...

Stock Market Hearings

the dour note in the division.

week

Chronicle

The Commercial and Financial

(928)

mar¬

Director, Harold

E. Wood &

list was

ket will begin

and

*
*
*
high territory for a quar¬
far more prominent on persis¬
ter of a century, but decided
The big letdown when the
tent, although moderate, easi¬
rather to ignore both. As a
Telephone "split" failed to ness
than
for
any
great
result it was left to individual materialize
did, at least, set buoyancy, du Pont occasion¬
favorites to keep things buoy¬ off a somewhat
widespread ally turned definitely irregu¬
ant.
trend for market analysts to lar
including one session
#
*
❖
discount all the great romance when a
peak gain of sizable
The sharp drop in prices revolving around stock splits
proportions not only disap¬
again in London early in the that are hailed even when peared in a matter of minutes
week induced lots of caution there is no change in the divi¬ but was
replaced by a nearly-

March 3, 1955.

Co., St. Paul, Minn.; also Profes¬
sor
John K. Galbraith, Harvard

on

of the

section

Pont

new

,

but apart from some precau¬

dend

payment. The chore was identical net
point out that there is little in the face of

this

And

loss.

tionary and momentary sell¬ to
a higher interim
ing in issues like American basic difference between one dividend than was paid a year
Metal, where there are large large piece and three or four ago. General Motors has
British holdings, there was no little pieces of the same thing,
sagged quietly for the most
effect in our market.
except that it costs more to under the weight of its large
and sell the equivalent financing despite reports of a
That there was no indus¬ amount of little pieces be¬ good reception for it.
cause of the sliding commis¬
trial follow-through to
*
*
*
the
rail breakout into new high sion scale.
#

❖

territory,

as

❖

buy

expected, blunted the signifi¬
cance of the feat considerably.
The

top had been
the first trading ses¬
the year and the car¬

previous

Oils Consolidate

*

*

*

had been widely

Oils have been

Back in Limelight

Aircrafts

as

Aircrafts mustered

bit of

a

as

selective

of the major groups
leadership rotating from

any

with

renewed

popularity again this
day to day and the whole pic¬
week with Douglas, a peren¬
ture
one ' of
consolidation
sion of
nial leader, back in the lime¬
rather than any determined
rier index twice tried unsuc¬
light although not too inclined moves either
way. Houston
cessfully to better it before to set
any historic price level.
succeeding. Kansas City The issue had retreated a was one of this week's stars
Southern, with the help of a rather sizable distance from with a multi-point runup. The
so-called Getty group—Pacif¬
better comparative earnings
its recent high.
ic
Western, Skelly, Mission
experience, was able to stand
*
*
*
and Tide Water
generally
out on some good gains to
on
moderate
Boeing was able to move featured
spark the rails generally, but
the big play was in the East¬ ahead along with Douglas and strength.
There was occa¬
posted

on

The

Commit¬

tee

has

vited

20

sons

to

All

have

Managing Partner, Merrill Lynch,
Pierce, Fenner and Beane, New

in¬

York, N. Y.

that

will

Salt

list

of

tives

are

New

securities

over-the-counter

deal¬

economists, investment bank¬
ers,
financial
institutions,
in¬
vestment
companies, industrial

ers,

with large public fi¬
market analysts and

witnesses

"The

selected,"

were

credit

and

tax

policies, investment company,
pension fund and union fund par¬
ticipation, the extent of equity
financing,
and
stock
exchange
member

trading

were

all factors

"Our

primary
the

concern

testimony

was

of

Pennsylva¬
Central. Erie, in par¬

roads—Erie,

nia and

ticular,
new

was

able to achieve

a

high since 1951, and was

engaged in an attempt to scale
that figure for the best price
in the issue since its reorgan¬

ization in 1941.
i'fi

Peoria

of

the

&

rail

if

sis

Eastern
stars

was

until

one

New

York Central officially denied
any

kind

Aviation

Bendix

somewhat

also sional easiness in the "Stand¬

was

prominent on

strength.
It is

a

oil

ard"

Service for the most
bit inconsistent that

an

the airframe

Cities

pursued

aimless market course.

Bendix should share the fates
of

and

issues

*

*

Steels

were

products. Nevertheless, it was
able to

nudge its high

ladder

a

up

bit further.

U.

S.

Steel

normal for
sions.

vision

outstanding stock. The stock Action in Low-Priced Issues
retreated rather rapidly from
Some of the 1 o w-p r i c e d
its all-time high posted on the shares featured both on
good
strength of the rumors. Penn¬ price action and high volume.
sylvania continued to get a Baldwin-Lima Hamilton,

it

March
M.

McC.

Mar¬

Board of Gov¬
Reserve System,

15

Honorable George

—

the

of

Secretary

Humphrey,

Treasury, Washington, D. C.
March 16
Dorsey Richardson,
—

Chairman, National Association of
Investment Companies, New York,
N. Y.

March 17—Ferdinand Eberstadt,
Chairman of the Board and Presi¬

dent,

Eberstadt

F.

Inc.,

Co.,

&

York, N. Y.

March

18

—

Harlow H. Curtice,

President, Chief Executive Officer

a

breadth of

and Albert Bradley,
Direc¬

Vice-President,

Financial Pol¬

and Chairman,

tor

their spe¬

icy

cialties."

Committee, General Motors
Corporation, Detroit, Michigan.
March 21
Benjamin F. Fair—

Schedule of Witnesses
March

3

Keith

G.

—

Funston,

March

York

New

4

Edward

—

McCor-

T.

President, American Stock
Exchange, New York, N. Y.
March 7—James E. Day, Presi¬
mick,

Stock

Midwest

Chairman, Board of Direc¬
tors, U. S. Steel Corp., Pittsburgh,

less,

Stock Ex¬
change, New York, N. Y.

President,

Exchange,

Pa.

March

22—Ralph

H.

Demmler,

Securities
and
Ex¬
Commission, Washington,

Chairman,
change
C.

D.

New

Baruch,

23—Bernard M.

March

York, N. Y.

inclined

Gold Market Assuming More

in routine

shares

February issue of the "Midland Bank (London) Review," in
article entitled "Another Chapter in the Story of Gold," finds
the distribution of world's monetary gold in past few years has

ses¬

were

general improvement in international financial
as
most noteworthy developments:
(1) the

reflected the

neglected although
Sutherland was able to join

Sees

relations.

reestablishment of the London Gold

issues

appearing in the
daily new highs lists. Oxford
Paper was the erratic member
good play with much talk Hupp Corp., Gar Wood and of the group, good strength
about of a proxy fight. It is Electrical & Musical Indus¬ evaporating the next day into
a
loss that pretty much left
all pretty nebulous, however. tries were
among the busier
*
*
❖
in
this
section, with some things unchanged overall.

"Normal"

Appearance

to

somewhat

the

14—William

March

to

with

confined

not

Graham-Newman

President,

Corp., New York, N. Y.

undistinguished

was

Paper

and

Executive

to speak upon each of
subjects. Secondarily, we

wanted persons

111.;

Chicago,

Co.,

and Director,

slip and occasionally dropped
the
by wider margins than are

intention of making any
of deal to pick up the

and

Benjamin Graham, Chairman

these

doesn't make any
with Bethlehem Steel occa¬
planes and might better be
classified among the electron¬ sionally showing some pin¬
ics firms on the nature of its point trader attention while
company

also

qualified

dent,

The

makers.

Roebuck

to

persons

—

ern

the

New

that were considered.

obtain

E.

Washington, D. C.

Fulbright, "to obtain

conditions,

Robert

General

—

Chairman,
ernors,
Federal

opinions from persons of wide
experience
with
the
particular
phases of the stock market study.
In addition to the general picture,
business

11

Director and Chairman of
Finance
Committee,
Sears,

tin,

Government agencies.

said Senator

John

Wood,

J. W. FulbrUht

exchanges,

nancing,

Eccles,

also

York, N. Y.

March

stock

companies

Utah;

City,

Chairman of the Board
of Directors, Chase National Bank,

presenta-

r e

Lake

J. McCloy,

in

Included

S.

10—Marriner

March

ap¬

pear.

the

—

...

testify.

dicated

they

University, Cambridge, Mass. ,
March 9
Winthrop H. Smith,

in¬
per¬

guration of

Market, and (2) the inau¬

gold transactions service by the International
Monetary Fund.

a

-

>

Rebound

by Telephone

good

price

advances

long
Telephone, which
has shown all sorts of pat¬ way to go to set any note¬
terns but little duplication in worthy prices since it is one
sionally.

American

Hupp

has

/

occa¬

of the issues that have had to

to

*

the textiles

came

notably Real
Hosiery. The American

life at times,

Silk

Woolen-Robbins-Mills -Tex¬

the series of
suffer a
"reverse
split" in tron forthcoming merger
postwar debenture issues,
1937 that cut holdings in half
produced only a bit of life in
made a rather surprising re¬
the Woolen preferreds.
bound to its best price level through a l-for-2 exchange.
responding

to

*

since 1946 after.the brief sell¬

ing that followed plans to of¬
fer another $625,000,000 de¬
benture

Cement

*

*

issues

*

indicated

that

con¬

soft moments,

issue, probably
May. The unusually
sharp one-day runup on hopes
of a stock split — and such
hopes are eternal in this issue land Cement was this week's ginia Carolina Chemical at an
and its subsequent quick leader, helped by a good earn- apparent end. The stock sub¬
retreat came at just the right i n g s
statement. Marquette stituted a couple of rather
time to cloud the action that Cement, a somewhat new is¬ large
losses for its recent
around

•—

was

due

solely to the finan-

/




sue

to

listed

trading,

occa¬

soaring style.

with

one

both

to

another,

enabling
with

thus

their needs

satisfy

At the sugges¬
1952,
of liasion was made
regular service available to

saving of cost.

a

tion

view"

this provision

surveys

ments bearing on

recent develop¬
the place of gold

of

into

a

members, in March,

and con¬
cludes that changes in the dis¬
tribution of monetary gold during

all

the

remains

the

world

last

economy,

have reflected the

years

improvement in international fi¬
nancial relations, and the situa¬

tion,

general, has taken on

in

more

normal

a

the situation,
the "Midland Bank Review" states:
have

on

noteworthy developments
occurred, within the past

in the facilities avail¬
able for transactions in gold. First,
as
will later
be described, the
three years,

gold market has been re¬

London

in

each

time—the

International

the

of

Fund

Mone¬

to

parties

charges
a

com¬

pleted transaction, whose identity
and

in dollars,
the various charges in¬

pays

books

1/32%

secret,

cidental

had
to

the

depository.

equivalent

receive
to match
to

the

By the

transactions

completed,- amounting

been

the

in

transfer

the

to

of

the second year

selling

of $219

m.

In

the Fund did not
orders sufficient

the 'continuous demand*

buy, and the demand had to be

met

to

a

through

extent

great

already established channels; only

Secondly—though earlier eight

opened.

The

members.

end of April, 1953, 24

appearance.

Commenting
"Two

they haven't foresaken
the
spotlight even though Firestone doing somewhat
they recently went through a poorer than the rest. Chem¬
consolidating phase with little icals generally were out of
overall progress. Alpha Port¬ favor, with the play in Vir¬
some

of

Gold," the February issue of the
Bank
(London)
Re¬

*

Rubber shares had to
tend with

entitled

article,

leading

a

"Midland

in

Some of

a

*

*

In

"Another Chapter in the Story

the

transactions, amounting to
equivalent of $79 m., were

tary Fund has inaugurated a gold
transactions service.
On several

completed.

occasions, when one member had

the world's open

wished
lar

to

center

sell

gold in a particu¬
another to buy

the

have

taken

on

in

markets for gold
a

'normal'

more

and

there, the Fund had been able to
put

developments

"Meanwhile,

two

members

in

touch

appearance.

abandonment

Despite
by

the

the

virtual

Fund,

in

Volume

181

Number 5406

..

.

The Commercial and Financial Chronicle

(929)

September, 1951, of its attempts

posed

to

gold.

direct

official

newly-mined

gold

and

reserves

from

into

prevent

it

leaking away into private
hoards, the movement has come
to conform

officially
increase

more

in

the

pattern.

world

gold,

The

total

expressed

has

each year.
and output

since

of

as

proportion of the amount of

production,

a

new

increased

Estimates of holdings
made by such bodies

the Fund, the Bank for Inter¬
national Settlements and the Fed¬
as

eral

Reserve

Board

differ

one

another to

some

the

Fund

pointed

has

'there

from

extent;

and
that

out

are
many imperfections
in the data for making this com¬
.

parison.'
that

.

the

all

estimates

increase

amounted
new

.

Yet

production

year until

low

in

1952

by

saw

each

of

postwar

perhaps

—

the figure

stored to about

liminary

agree

It

is

now

London
cense.

ever,

market,

does

not

to year.

curs

in

the

world's

much

vary

When
rate

of

stocks

of

monetary

came

1951,

the

their

from

countries

views

freedom.

new

in 1952

of

gold

private

scribed

about the prospects for particular

At the

national currencies.

fell

to

exercised
In

an
was

France,

official

gold

loan.

extension

an

had

been

suggest

the

direct

to

authorities.

mines

has

national

In

fact,

1954 Annual

Fund's

abandonment of control in

a

ducers

in

Crown

Colonies

Southern

Rhodesia
at

were

stricted to 40% of
this

new

limitation

first

Australia

and

producers

exercise

is

it are

these

schemes

free

a

market

Cost of Goods

tinued

to

decline in demand,
of

that

each

Interest

gently but steadily
until in November, 1953, the pre¬
mium

$35

the

over

an

about

official price of
disappeared. It was

ounce

this

time

that

on

they

had

imposed

in which gold

mined

gold

to

the

free

seem

to have fallen

plies

were

her

all

allowed
own

and

anxious not

to

40%

a

'embarass

maximum

must

be

in

maintained

Here,

too,

made

in

until

re¬

Reserve for

October, 1953.
had to be

$510,39.9,171

675,518,610

658,392,229

15,862,794

15,699,522

6,101,408

must

$156,946,120

,..

based

Corporation

as

its

policy

is

'make

to

maximum use' of the London

ket because,

23,775,439

of Agreements.

26,264,110

236,437,460

Earned

,.23,419,484

25,966,255

213,017,976

210,471,205

Surplus

461,671,864

436,609,0.99

$1,251,635,960

The Reserve Bank has announced
that

210,173,350

236,437,460

Less present amount

be

for it at rates

pays

212,662,021

Employees

28,952,794 shares.

the London market price.

on

200,000,000

held by the
collateral under the Stock Pur¬

sold to the South African Reserve

Bank, which

130,000,000

' 300,000,000

(631,875 shares in 1953)

The

now

$207,130,929

120,000,000

6,381,098

chase Plan for

their

withdrawn.

was

1

$1,190,592,331

Contingencies

563,900 shares

production

1

:

28,388,894 shares (28,320,919 shares in 1953)

payment

account

entire

102,783,442

Capital Stock—

reopened in March, 1954, the

own

124,976,459

3.55

..

3.75% Promissory Notes

was

on

11,517,083

227,759,901

6,660,502

2.70% Promissory Notes

dollars.

producers to sell gold

1,048,157,344

Liabilities

permission granted to South Afri¬
can

$1,025,833,041

72,235,535

Charges

"When the London gold market
was

1953

72,381,985

Foreign Subsidiaries

Total Current Liabilities.

that the
markets

form

processed

Co., Inc., 1562 Main

Street.

3.10

the

was

condition
premium

joined the staff of P.

$1,251,635,960

might have happened
if premium sales, which had been
running at about 40% of her out¬
put, were unrestricted.
Accord¬
ingly,

has

Brooks &

89,779,271

Africa

as

tained, and a
gold sold
in

W.

$553,594,053

Patents, Trade-Marks, and Goodwill

was

by substan¬

SPRINGFIELD, Mass.—Guy L.
Pelton

82,349,987

Renegotiation

Depreciation and Amortization

present prices. As an official state¬

market,'

Joins P. B. Brooks
(Special to The Financial Chronicle)

CONDENSED BALANCE SHEET

Investments in Affiliates and

$1,190,592,331

the

mar¬

'having regard to the

international nature and the lead¬

ing position of the London

ket,

it

unlikely

appears

f./

mar¬

that

a

"Thus

restrictions

positive

jM TgWBj\

ca^|

kets

the

of

the

Fund's

world

months

were

on

loosened

following

statement

of

1951.

J\-\

the

I

September,
gold is con¬

Moreover, some
sumed regularly by industry and
the

arts,

mands

made

and

to

^various

meet

arrangements

cording

to

the

these

countries




on request.

Included with the

UCCs Trade-marked Products include-

de¬
have

differing

restrictions

Corporation will he furnished

report is an illustrated booklet that describes the Corporation's products
—Alloys, Carbons, Gases, Chemicals, and Plastics—and how they
are
produced from nature's raw materials. For copies of the report
and booklet, please write to the Secretary, Union Carbide and
Carbon Corporation, 30 East 42nd Street, New York 17, N. Y.

the supply of gold to the free mar¬
in

*Copies of the complete 1954 Annual Report of Union Carbide and
Carbon

u

better price could normally be ob¬
tained elsewhere.'

ac¬

im¬

Hakelite, Vinylite, and Krene Plastics
Eveready

Flashlights and Batteries

Synthetic Organic Chemicals

•

•

Dynel Textile Fibers
•
Pyrofax Gas
•
Acheson Electrodes
•
Linde Oxygen
Union Carbide
•
Linde Silicones
•
Prestone Anti-Freeze
•
National Carbons
Alloys and Metals
•
IIaynes Stellite Alloys
•
Prest-O-Lite Acetylene
•

Electromet

and

much

gold
market, in March, 1954, has to be

172,129,258

Renegotiation....

.

Fixed Assets After Accumulated

mar¬

1953

recorded."

75,351,702

•....•

Deferred

South

So

733,528,658

.'.

A ssefs

gold, a quantity repre¬
about one-third of her

plain,

of

for
the general setting against which
the reopening of the London

11,913,750

Share

were

those

European

spring of 1954.

93,712,849

Total Current Assets

of

made

on

autumn

668,418,442

total annual production and -the
equivalent of roughly £50 m. at
ment

the

than

re¬

other

addition, to sell to Britain each
year a minimum of 4 million fine
senting

in

scale

\

Expenses

hard currencies and undertook, in

ounces

sup¬

946,174,299

lapse at the end of 1954—under
dollars

the

ex¬

markets

off, but

sustained

Dividends Paid

of

kets

1947,

1952, but they

smaller

a

which occurred

the

on

$923,693,379

Provision for Federal Income Taxes and

arrangement—which
met

again in

on

ported. In fact, exports of newly-

Net Income.v.

Net Income
per

she

and

might be

Promissory Notes

Africa, by far the largest
producer, has been operating an

quirements

Canada

gold seem to be infre¬
Sales of Russian
gold had
in 1946 and

South Africa removed the restric¬

South

which

con¬

the

trans¬

reported

Report Summary"

Net Income Before Federal Income Taxes and

of

for

payment

was

gold

fall

Depreciation and Amortization

choose

not eligible for

of

of readier

Sold, Selling, General, and

Administrative

the gold must be made in dollars.

to

and

prices

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

although

who

condition

a

supplies and

.

Total Income

domestic subsidy.

"It

gold.

"Under the pressure

1954

Sales

re¬

removed

Canada,

interchange

CONDENSED INCOME STATEMENT

production,

was

Canadian

the

of monetary

and

from May, 1952. Similar freedom
has been granted to producers in

to

been

balanced

more

num¬

ber of major producing countries.
Sales in premium markets by pro¬

but

quent.

and

a

behind

curtain, and external

actions in

OBa

September, 1951,
by relaxations or

followed

iron

been

announcement in
was

put or stocks of gold

AND CARBON CORPORATION

monetary

the

prices

that

"This does not necessarily mean
that more
of
the
gold coming
sold

steadier

Union Carbide

re¬

pre¬

higher.

from

in

tial sales of
gold by Russia. Gen¬
erally, little is known of the out¬

year

one-half; and

estimates

un¬

even

The

the proportion for 1954 was again

fresh

of

proved

for gold in free markets, some re¬
laxation of exchange restrictions

form

sub¬

War

reflected

was

disgorged
and

of

Korean

tions

time, private demand

fears

the

founded, and increasing financial
stability
throughout
the
world

appreciable

hoards

an

same

as

markets be¬
available as

open

readily

more

moreover,

political

current

September,

producing

amount

or

outbreak

rose

supplies for the

affected

circumstances

the

following

in

hoarding and the in¬
impulses, to dishoarding, eitiher of which may be
in

renewed

full, combative position it had
taken
up
hitherto.
Thereafter,

and

changes

seems

from

the

of

demand for

by

of

Fund announced its 'retreat' from

gold, compared with new output,
it is largely attributable to varia¬
tions in the intensity of private
ducements

the

in Korea. The price in free

war

when

oc¬

increase

of

stock

abruptly at first, but
declined from the beginning
of
1951, and fell rather more sharply

from

change

a

world's

resulted

markets

through the
again under li¬

Demand of this kind, how¬

year

the

of

obtained

smallness

the

in

have

considerable recovery;

a

1953

hoarding

was

reserves

one-half

one-sixth.

as

to

purposes

relative

In 1951 it fell be¬

1950.

one-quarter
low

as

in

about

to

monetary gold during 1951

the London

"The

increase

market, gold for these
provided,
under
closely with the. license, from the official stocks.

approved

monetary

on holding and dealing in
In the United Kingdom, for
instance, before the reopening of

17

The Commercial and Financial Chronicle
13

President

Congress
which

D. Eisensubmitted to
special
message
in

a

he

22,

outlined

long-range

a

given top priority in

tem must be

the nation's business. Increased need. Adequate right-of-way to
over a period of ten years, an estihighway transportation costs, assure control of access; grade
mated expenditure of $101 billion, passed on through each step in the
separation structures; relocation
to be shared by States, localities distribution
of goods, are paid and realignment of present high¬
aid the Federal Government.
ultimately by the individual con- ways; all these, done on the neces¬
road-building

The text

the

of
■

of

.

nation is

a

as

sus-

thought

of

areas

of
people and
goods. The

f hr

ommercial

movement

vast

a

of

system

in-

ler-eonnected

foreshadow

criss-crossing
the country and

joining

communication and

tation

systems
the

united

be

transpor-

dynamic

are

very

them,

Without

alliance

mere

a

elebear

we

name

States.

would

we

The nation's

of

properly

dividual

"1V

one

Three million, three
sixty-six thousand

miles of road, traveled by 58,000,000 motor vehicles, comprise it..
The replacement cost

sev-

every

Americans gains his livelihood

and

supports his family out of it.

But, in large part, the network is
inadequate for the nation's grow-

'ernment

in July

problem
•the

of last
methods

and

by

Government

assist the States in its

S^oMhelaxes

whtah

aid

hf

pays

30
15

'lime,

and

$21

$47

$68

16

17

33

Totals

i_

$37

$64

$101

-

needs

of

Conference and

Commit¬
the Federal
construction

the President's Advisory
tee

Federal Aid Systems

share

Congress has recognized thenal1Qnal interest in the principal
r<?ads ^ authorizing two Federal
ai<* systems, selected cooperatively
by the states, local units and the
Bureau of Public Roads,.-U J
.

agreed

are

the

of

that

needed

should be about 30% of
the total, leaving to state and local
units responsibility to finance the
program

remainder.
The obvious

responsibility to be

accepted by the Federal Govern¬

addition to the existing
Federal interest in our 3,366.000mile network of highways, is the
in

ment,

In 1944 the Congress approved

development of the interstate sys¬
tem with its most essential urban
connections.

arterial

September
the
Advisory
Committee

departments and

representing

agencies

National Government
ized

conduct

to

nated

with

Quick

was

organ-

coordi-

two

groups.

-

Needed

Recommendations

evidence

that

action,
comprehensive and quick and forward-looking, is needed.
Each

FIRST:

36,000 people
ihan

more

than

killed and

more

year

are

million

a

injured

unsafe road is

an

family circle

If

prevent

be

death

cannot

reliable

But

pla"^ th^ measurabfe

nomic
dent

in the

gap

the monetary worth

ink^ tLT

reckoned

»Mtes

a

of

cost

toll

to

the

the

esti-

at

more

than $4,300,000,000 a year.

SECOND:
1ion

of

creases

the

The

road

condinet

the cost of vehicle

in-

opera-

lion, according to many estimates,
by as much as one cent per mile
of

vehicle

.rate

of

travel.

travel

At

this




the

sections

of

the

system,

which

would

routes, as direct

as

connect

by

practicable, the

principal metropolitan areas, cities
and industrial centers, serve the
national defense and connect with

Fou^s
£

^

+

T

Si® J
£

continental importance
oi
^
f Mexico,
system of mter\%<v nf^ntoi nTn
?y.
j;otal road
,

milea§e> Joins 42 state capital
cities and 90% of a11 cities over
50'000 P°Pulationcarries more

-i"

annual average cost of

an

$2,500,-

000,000 for the ten-year period.

for

this

to

systems,

now

at the rate author¬

ized

by the 1954 act of approxi¬
mately $525,000,000 annually., be

present

totals

more

general

time,

I

(3) That Federal funds for that

portion of the Federal-aid systems
in urban areas not on the inter¬
state

system,

now

approximately

$75,000,000 annually, be continued.
(4) That Federal funds for for¬
highways be continued at the
$22,500,000 per year rate.
Under these proposals, the total

est

present

Federal

expenditures through the

period

ten-year

K

population.

Approximately

Federal
Federal
Forest

dent made by the

aid,

to date. This

$25.'00o

primary

&

secondary

urban

highways

5.250
.750

.225
$31,225

system and its mile-

presently included within
the Federal-aid primary system,
in
addition
to these
systems,
age are

National
This study of

on

a

dominate the railroad
the

in

With¬

news.

weeks the Inter¬
Commerce Commission has

state

past two

granted both Baltimore & Ohio
and Chicago, Rock Island & Paci¬

way

into

which

national

a

highway pattern. The two reports,
however, should generate recogni¬
tion of the urgency that presses

approval

us;

of

general

a

that will give us a mod¬
safe highway system; realiza¬

ern

of

and

the

rewards

comprehensive

provide

for

prompt

action.

They

solid foundation

a

for

a

sound program.
DWIGHT D. EISENHOWER
The White House,

February 22, 1955.

a

sizable

increment to the earnings

of $6.08

would

lands

SoIe, responsibility for roads that

of the United States will continue

quite

represent

share, before sinking and other
funds, reported for 1954.
without such an operation

a

reserve

Even

rail

many

shares

feel that the
large measure

analysts
have

still

a

of

bidding requirements with respect

appeal despite the advance of
well over 100% from last year's

to their

low.

fic

competitive

from

exemption

proposed refunding oper¬
Island proposes to

Rock

through

privately,

place

ment bankers, an

Income

of

lion

invest¬

issue of $65 mil¬
Debentures, the

proceeds to be used to call for re¬
demption the outstanding 5% pre¬
ferred stock.
Baltimore & Ohio

much more ambitious
operation, involving the refunding
plans
of

a

much

as

as

$345 million of its

It is pointed
out that the
comprehensive property rehabili¬
tation that obscured true earning
power for so many years has now
been completed, and that finances
have been sufficiently improved
so that regular dividends may now
looked for.

be

to be

present debt with a view toward
lower average interest rate. In¬
vestment
bankers have
been

this proposal which
may be done either piecemeal or
as
one
operation, probably the
former. It is expected that it will

late

uted

nal

working

on

take the form of an ex¬
change offer to present holders,

largely

mostly institutional.

In

latest entrant is Erie

The

which has asked the ICC for per¬

Debentures

Income

ance

last

strides

to

in

for

long

costly roadway im¬
yard moderniza¬

and

and

to be realized.

were

tial
ured

down to 30.4% bv 1953. There

was

rise of two

a

this

but

well

below

preferred stock holders as Erie's
credit standing at this time would

and

underwriting

of

notable

the

ized

Great Western
Mobile & Ohio. It is

that

Chicago

are

Gulf

and

points last
the road

left

Class

that the road
Class

few

the roads being mentioned
an exchange of¬

fer

the

I

average

the leaders of the in¬
dustry in this respect. Also, it is

port

candidates for

full

still

among

quarters that other similar plans
along the same line will be an¬
nounced
shortly.
Prominent
among

meas¬

the fact that the trans¬
portation
ratio
that
had
been
above 40%
as
recently as 1948
by

year

an

The substan¬

is best

made

progress

was

It is felt in financial

essential if the

full benefits of the modern power

Obviously this will take the
form of an exchange offer to the

support

The

one

complete

provement

5%

pose.

this nature.

recent ,years.

was

achieve

and
a

year.

of the earliest
dieselization
when that was accomplished

company

this pur¬

mission to issue $40,288,200 of

first dividend

point of operating perform¬
the road has made phenome¬

tion program was

existing preferred stocks, with a
view toward reducing the Federal
income
tax
burden,
also
con¬
tinues.

The

paid since consummation of

reorganization many years ago
was one of $0.75
a share distrib¬

a

an

was

of

one

I

properties to
increase in earnings

re¬

in

1954, the $6.08 reported for the
period comparing with $5.92 real¬
in

erally

proved

significant
that
the
stocks of both of these

With

1953.

business

gen¬

improving it is expected
this
showing will be im¬
upon

in the current year.

considered
common

roads

were

operation

an

would

mate¬

rially improve the status of Chi¬
there

are

Western

Great

more

common

as

shares of the $2.50

preferred outstanding than there

SAN
Robert

FRANCISCO,
L.

Morris

Shuman, Agnew &
some

is

Calif.
now

Co.,

—

with

155 San-

Street, members of the New

York

and

Francisco

San

Stock

Exchanges.

shares.

common

preferred is outstanding in
the amount of 366.104 shares and
The

if

Shuman, Agnew

(Special to The Financial Chronicle)

among

such

are

Joins

quite active last week,

the strongest of the
lower priced rail issues.
In par¬
ticular it is being pointed out that
and

With Mitchum, Jones
(Special to The Financial Chronicle)

/this could be exchanged into 5%

face value of bonds for each pre¬

principal, and in many cases the

has

vast-

of proposals,

resolved

be

the

highway enterprise fos¬

Chicago Great Western
developments, both
active and projected, continue to

high¬
maintenance and improve¬
in national parks, on Indian
and on other public lands
in the territories and

ment

government

varieties

must

LOS

Ipcome bonds in the ratio of $50

ways

ex¬

highway
and their

Inescapably,

ters

President's Ad¬

The extension of necessary high¬

the

Federal

Presi¬

Financing

cago

would be:

system

aid,

together

,

exhaustive

problems

its

of the

tion

forwarding

am

liberations the report to the

as

continued.

Inferstate

65% of the urban and 45% of the

the

in

increase

-

by the Congress in its de¬

use

not

(2) That Federal contributions
primary and secondary road

(Billions)

^

rural

by 1964 to include the most essen¬
tial urban arterial Connections; at

37,600 miles have been designated

physical

present

some

from the viewpoint
of national interest, are
more
important than others the
Congress in 1944 -authorized the
selection
of
a
special network,
not
to
exceed
40,000 miles in

primary

eco-

highway acci*hway

nation

Because

the

on

highways. To the home where the
Iragic aftermath of an accident
on

.

length,
with

confronted

were

inescapable

the

Forward-Looking

Action
All three

of

studies

the other

and

an

obligations.

Exchange of Income bonds for

in

committee

a

by

revenue

ations.

streets

systems...

roads

The Governors'

I

solution.

$23

20
15

the Federal aid secondary system,
In its report the advisory com¬
President's
which on July 1, 1954, totaled
on
a
National Highway Program, 482,972 miles, referred to as farm- mittee recommends:
headed by Lucius D. Clay, to work to-market roads—important feed-(1) That the Federal Govern¬
with the Governors and to pro- ers linking farms, factories, dis¬ ment assume principal responsi¬
pose a plan of action for submistribution outlets and smaller com- bility for the cost of a modern
sion to the Congress. At the same munities with the primary system,
interstate network to be completed
appointed

pledged to this purpose, rather

,

which
might

my

study of both the

a

Federal

at

year

$12

__

Federal-

of

documents
most

a

amination of the national

upon

Total

10

primary____
secondary—

Sub-total

Rural

$11

!

Interstate

Other

that

Eighty-third Con¬

program

expenditure

Urban

moreover

two

These

constitute

during the useful life of the roads

Dollars)

of

Billions

(In

the

of

and

preliminary 10-year totals
needs by road systems are:

Federal-aid

&ove
uLu^,
°
'
expenditures on a highway pro-

view

the

of need show that

require

will

Federal-aid

consisted of
234,407 miles, connecting all .the.
Prll)clPal cities, county seats,
ports, manufacturing areas and
other trafflc generating centers,

In recognition of this, the Gov-

request began

the

to

by

made

gress.

ness

finance this pro¬

sounder to

systems

in¬

The Federal aid primary system

ing needs.
ernors

inclined

am

study

Bureau of Public Roads at the di¬

system,

by special bond issues, to be
off by the above-mentioned
revenues, which will be collected

The

of

\

•

the

available

from

oil taxes,
instances

gram

financing, including f a study
the costs of completing
the

of the

case

of its drain-

and bridge and tunnel works

is incalculable. One in
en

the

serves

the

In

user.

P 5
'H
nlfenways'

age

I

it is

study of all phases of high¬

streets

a

its

and

in

planned

revenues

Diesel
limited

In

remedies.

At

Its estimates

Pub*10 enterprise. As the
owner and operatoi, t e various
levels of government have a re¬
sponsibihty tor management that
Promotes the economy ot the na¬
tion and

1S

tederal

building.

and

10-year construction program to
modernize
all
our
roads
and

these deficiencies

correct

.

highway system is

gigantic enterprise,

hundred

years
.

of our
largest items o£ capital investrnent. Generations have gone into

a

ten

an ana¬

ments in

Financing Suggestions

1S an obligation of government at of $101,000,000,000 by all levels of
fvery tevel- The highway system government.

separate parts.

many

increasing
gas

the

on

tolls.

with

must be based

several

faintly

only
of

those

heJJce»

at our
friendly

with

borders

ments in

based

augmented

way

of

can

own

a

neighbors to the north and south.
Together, the uniting forces of
our

'

of

use

than

A realistic answer
on a.

be

present

the nation's

national

gross

jams

traffic

isting

Eisenhower

Pres.

h i g h w a y s

national

Our

.

inadequate system, how
improve it so that 10

we

remedy is

review of the major ele¬
a most complex situation.
addition, the Congress will have

rection

should

its

of highways, visory Committee
made
by the Bureau, of Public Highway Program.
$500,000,000,000 in 1965 when our' Roads in cooperation with the
population will exceed 180,000,- state highway departments and
000 and, according to other esti-.
local units of government. This
mates, will travel in 81,000,000 ^ study, made at the direction of
vehicles,
814,000,000,000
vehicle ther 83rd Congress in the 1954.
miles that year. Unless the pres¬ Federal aid
highway act, is the
ent rate of highway improvement most
comprehensive of its kind
~nd development is increased, ex¬
ever undertaken.

oughout
Republic

over

•

•

FOURTH:

individual and
t

within hours of

congested and un¬

highway traffic prob¬

solution for its

interstate and Federal-aid systems

from now it will be fitted to
requirements?

years

product, about $357,000,003,000 in
1954, is estimated to reach over

matched by

i

can

of

have a

we

entire

lem and presentation of a detailed

paid

and

then

attack.

an

of in formation

the

safe

deadly congestion

flow

ceaseless

of

mobilization

areas,

the present

But

portation

capacity.

essential economic function.
system in critical
would
be the breeder of

every

and

system,
If

(jefense forces and maintenance

trans¬

easy

target

within an integrated
exceed their collective

scale

sary

Quick evacuation

net must Pcrmlt

by free communication

l ined

t-y

follows:

Congress

*
unity

^

Our

surner.
THIRD: In case of an atomic
the United attack on our key cities, the road

of the President's sps-

c>clI message

To

involving,

program

the

lytical

I

on

of development,

rate

budget for

and should
feet, with high¬
way users providing the total dol¬
lars
necessary
for improvement
and new construction. Financing of
believe,

gram,

stand

construction planning.
current

the

subjects.
sound Federal highway pro¬

A

area.

the interstate sys¬

Of all these,

But at the
the
interstate
network
would
not
than $5,000,000,000 a year. The reach even a reasonable level of
cost is not borne by the individual extent and efficiency in half a
vehicle operator alone. It pyra- century. State highway depart¬
mids into higher expense of doing ments cannot effectively meet the

Dwight

Feb.

on

nation's

the

one-fifth

Congress, he asks approval of a $101
billion long-range road-building program, in which the states
and localities would participate along with the Federal Govt.

in

treated

be

these particular

erally owned

In special message to

hower,

to

provide access to Fed¬
land — more than

or

cross

President Eisenhower Presents Road Program

i

Thursday, February 24, 1955

...

(930)

share

ferred

the

tax

out to

$1.35

common

it

is

indicated

that

net, would work
share on the 352,639

saving,
a

shares outstanding.

This

ANGELES,

V. Baldry is with
&

Templeton,

Street,

Cal.—Richard

Mitchum, Jones

650

members of

South

Spring

the Los An¬

geles Stock Exchange.

•Volume 181

Number 5406

.

The Commercial and Financial Chronicle

..

19

(931)

NASD Committee

:

Wood

E.

&

Wood,

Co.,

Chairman

of

St.

the

ernors of the

;

-

.

One

Harold

Paul,

Board

E.

Minn.,
of

Gov¬

National Association

Plaza Office
-

E. F. Hutton &

ber

of

change,

the

New

has

Co-Manager
Company,
York

mem¬

Stock

announced

ment of Fred F. Pease

Ex¬

appoint¬

as

of age is still active and is
at bis desk most
every day, serves

Mr.

their

sons

staff of Edward N. Siegler &
Co.,
Union Commerce
Arcade, mem¬

bers

joins

William

Park

Plaza

M.

Hotel

office has

nearly four decades served
famous New Yorkers and

many

out-of-town

Harold E.

Wood

Securities

the

Allen

C.

Dealers,

du

G.

Stolle, Baker & Co., Inc., 174

North
was

is

now

Palm

Canyon

formerly

with

J.

A.

He

Hogle

& Co.

celebrities.

Ex¬

is

associated

now

Committee:

Chair¬

man, Mr. Wood; members,
F. Noyes, The Illinois

An

George

Chicago;

William

First

H.

Potter,

With Interstate Sees. Corp.

(Special to The Financial Chronicle)

MADISON,
has

Dale

Wis. —Charles

become

associated

(Special to The Financial Chronicle)

CHARLOTTE, N. C.

R.

with

Committee; Chairman,
DuBois; members, Mr. Wood,

Interstate

Commercial National Bank Build¬

for

Blair,

many

Rollins

years

&

was

with

Inc.

Co.

Securities

ing.

important announcement

about Canadian

Banking

.

.

.

The Bank of Toronto and The Dominion Bank, two of Canada's best-known
banks, have

Harold E.

Wood &

Company, St.
Potter; Mr. Doolittle;
William J. Collins, William J. Col¬
lins & Co., Portland,
Ore.; Jo M.
French, Blyth & Co., Inc., Los
Angeles; and Mr. Fulton.

Paul;

Mr.

National

Business

Committee:

members, Edward H. Austin,
Austin, Hart & Parvin, San An¬
tonio; Earl K. Bassett, W. E. Hut¬
ton &

Co., New York; Howard H.
FJitch, Barrett, Fitch, North &
Co., Kansas
OsCity; Lee H.
William

Blair

strategically located

This is

Conduct

Chairman, Mr. Hunt¬

er;

trander,

recently amalgamated
tution has combined

&

strong

an

to

form The Toronto-Dominion Bank. The amalgamated insti¬

resources

across

of

over one

billion dollars and

more

than 450 branches,

Canada and also offices in New York and London, England.

historic landmark in Canadian business

institutions with combined experience of 183

years

history. Both banks

were

in Canadian banking.

The

progressive policies and sound management that have marked their individual efforts
in the
past

will

now

work together

force in Canada's future

make The Toronto-Dominion Bank

a

dynamic

growth.

Com¬

Chicago;
and
Frank
L.
Reissner,
Indianapolis
Bond
&
Share Corporation, Indianapolis.

to

pany,

Reed & Sloan Go.

Customers and friends of both The Bank of Toronto and The Dominion Bank
may

Opens in Dallas

be assured that the

same

personal service associated with each institution in the past

will continue in the future with The Toronto-Dominion Bank.

DALLAS, Texas^-Reed & Sloan
Company has
offices

in

Building

been

formed

with

Our

the

Adolphus Tower
engage in the secu¬

to

resources are

greater, our name

is

new—our

policy remains the

same.

rities business, i Harry F. Reed,
formerly Vice-President of Dallas
Rupe & Son, is a principal of the

firm.

™

NYSE Appoints

B. J. Harriman

TORONTO-DOMINION BANK.
THE

Keith

,

New

BEST

IN

BANKING

SERVICE

Funston, President of the

York

Stock

Exchange, has
appointment
of

announced

the

Bernard

Harriman

J.

Hew York Agency: 49 Wall Si.

Head Office: Toronto

Assist¬

as

ant Chief Examiner.
-

Mr.

Harriman
in

reer

1908.
an

the

He joined

Examiner in

ing

as

eral

an

started

financial

1930 after

firms

accountants.

Prior

tion

was

in

to

Morgan Adds

work¬

with

and

Senior

he

ca¬

the Exchange as

Accountant

member

his

district

sev¬

public

his promo¬

Examiner.

to Staff

(Special to The Financial Chronicle)

LOS ANGELES, Cal.—Leslie B.
Irvin has been added to the staff
of

Morgan

&

Co.,

634

Spring Street, members

South

of the Los

Angeles Stock Exchange.

With Ball, Burge

B. S. Vanstone

CLEVELAND,
Reyant

has

Ohio —Roy

become

J.

associated

with Ball,

Burge & Kraus, Union
Commerce Building, members of
the New York and Midwest Stock

'Exchanges.

Mr. Reyant was pre¬

viously with Hayden, Miller & Co.




Robert Rae

A. C. Ashforth

William Kerr

Chairman of the

(Special to The Financial Chronicle)

Vice-Chairman

President

General Manager

Board

C.

Dale

rector.
Finance

John

Cruttenden & Co. of Chicago. Mr.

Union

Mr.

—

Noble has become connected with

Jr.,

Securities
Corporation,
New York; and Wallace H.
Fulton,
the
Association's Executive
Di¬

Central

Investment Company.

Boston

Corporation,
Boston; Roy W. Doolittle & Co.,
Buffalo; Frank H. Hunter, McKelvey & Company, Pittsburgh;
Allen C. DuBois, Wertheim &
Co.,
New
York; H. Warren Wilson,

with

Company.
Mr. North
previously with E. E. Henkle

Company,

The

,

Republic
was

Joins Cruttenden Co.

affiliated

Drive.

Stock

the

..

Cal.—Row¬

land

France

Midwest

to

Bois

1955:

Executive

SPRINGS,

added

LINCOLN, Neb.—Jacob S. North

r

announces

following committee appoint¬

ments for

PALM

of * the

been

change.

with

area.

Hutton's Plaza

(Special to The Financial Chronicle)

has

(Special to The Financial Chronicle)

.

CLEVELAND, Ohio—Myron H.
Friedman

original customers and
and grandsons.

Stolle, Baker Adds

Pease

Joins Central Republic

of his

of its midtown office in the

ager

E. N. Siegler Adds
(Special to The Financial Chronicle)

{

some

co-man¬

Canby, 3rd in active direction of
the firm's growing business in the

of

original? managers, ■f
v;
who at over 90

Watson,

years

Plaza Hotel.

for

the

of

Walter

Appointm'ts Announced
Harold

Hutton Names Pease

and Vice-President

Corporation,

The Commercial and Financial Chronicle

(932)

20

i

■

gm

CI

T

1

Economic Growth and Inflation
in Prices or a long-run up-trend.

By ALVIN H. HANSEN *

holding there in danger in only

Harvard economist

counteTthe conditional "nflatton

University

Political Economy, Harvard

Professor of

rate or growth of the econciny, decries tear of inflation as an
obstacle to recovery. Asserts, "one does not encounter the

i

condition of inflation

long

so

exceed by

aggregate output
5

•

.

considerable margin the

a

I»

1

•

ai

nearly $30 billion below

our

1

r

erable margin the percentage in-

I should be prepared, intospeciaa
however,
go

per-

circumstances,

J

growth potential. Favors

75%

a

structrue that has been built into the

disposal

during the last 15 to 20
years—social security, farm price

go

economy

e

fc

tax

come

in good

last

this

that

not

cial
Hansen

World

the

and

preoccupa-

understandable due to

that

fact

This

inflation is of course in

large part

for-

were

for

News

S.

"U.

Report."

with

tion

as

prop,

we

an

Read,

recovery.

issue., of

14

is

artifi-

an

becoming

again

is
to

of

example, the interview article by
Secretary Humphrey in the Jan.

agreed

structure

H.

inflation
obstacle

we

long

fear

the

because

living

are

we

in

a

but
in

instead
our

the

a

I

with

Together

economy.

warswept

continuing support (despite a
of a $70 billion

budget, major tax reductions, and
credit,

easy

S1°a'
A

~

year

have

we

there

ago

The Situation in 1946

before

the

would

continue

sidevvise•

move

on

in

And

Nation

reduced

dation

inventory

together

seasonal

with

increase

restraint
this

Would

poliiqy?

think

I

transition

have

to

full

a

production accounts for the slight

thus
provide

far.

recovery

these

Neither

any*

solid

of

ground

for

believing that we are on the
way
back to our growth track,
This would require one or more
of

these

ward

things:

shift

income
in fixed

A sharp upconsumption-

the

in

ratio, (2) a sharp increase
capital investment, or (3)

increase

an

(1)

in

out-

government

lays.
No

one

far

so

projected
in

crease

ment.

fixed

Federal

aware

am

capital

invest-

Government

scheduled

are

slightly.
where

out-

Thus
were

we

had

we
a

to

drop

back

are

year

just

when

ago

hearings on the Economic Report. Any large forward
our

thrust must

from consump-

come

tion.
I suwsted

a

danl"?°that
cenf

I under-

(and

typically

have

,

and

vpnr

crvW

Vnn

acm

b/onmp rnS

we

satisfied

with

only

moderate rate of growth.

the

general welfare if

vised

GNF

figures

in

It

was

evil.

It

did

a

iesser

choice of the

indeed

mean

percentage-wise

a

price

consid-

th® Prl?e movement by 1948.

potential
its

as

base

ter century from 1925 to 1950; the

With respect to each of these

a

periods I ask two questions: (1)
What was the rate of increase of
output per annum, and (2) what
was the rate of increase of prices
per annum, calculated on the
compound percentage rate basis,
I

in-

half

figure

'53

of

sent over-full
suppose a

repre-

employment. I

growth of 3V2%
consent

a

the
the

base,

the

you

will

find

the

re-

In the first period 1900 to 1925,

TABLE
*1,

m

1

1

1931-34

combined

(In Billions of Dollars)
(i)
GNP (In 1 <>54 Prices)

(3)
Loss of

(2)
GNP (in 1!)54 Prices)

Maximum Employment and

Assumed Moderate

Production Potential

Growth Pattern

1953__

GNP

(1)

(2)

—

$368

$368

0

1954

381

357

$24

1955

.

394

366

28

1956
1957

pre-

year,

408

371

37

422

376

46
51

My second model, representing the complacency which I
fear, happened to hit upon a fig-

1959

452

386

66

1C-C0

468

396

Total loss of Gross National Product____

$324

vrnv'lh

gxuwin

the

none

less

great gains in aggregate
during the
last two
decades, have been widely dis¬
tributed— more equally in recent
years than ever before. The new
price level has not given us, as
sometimes in the past, increasing
inequality. '
/
Three
criteria
(all
suggested

$23

^

Inflation
ii

iNOW

all

monetary

ai

•

,

this

policy

a

in

progress? The last quarter century
stands up well under these tests.
Now
let
me
emphasize
one
thing. We should pursue no rigid
goal with respect to price stability.
should

emphatically not aim
at a constantly rising price level.
Nor should we set up the goal of
We

stabilitv. We should
keep our eyes fixed primarily on
"maximum
production,
employ¬
ment and purchasing power."
I should myself hope that over
long stretches we could approach
our full
growth potential at sub¬
stantially stable prices. I am en¬
couraged
in this hope
by the
price

rigid

record achieved

Aggregate
fPrice

Output

Index
7

3.5% per

year

3.0% per year

on

Just

lion
and

we

about

inflation

brief

question

about

word

on

market

ments.

I

another

agenda

your

stock

margin

should

like

the

—

require¬

to

raise

the

question, if I may, for later panel
discussion, whether any good pur¬
pose is ever served by dropping
the

ratio

below

75%.

I

do

not

Flanigan Director
Peter
elected
i

And

now

the

1925 to 1950

a

final

questions

turer

a

3.0% per
1.5%

year

per year

4.5% per year
d.5% per year

,

_

*The index numbers

are as

follows:
Aggregate

year

General

Consumer

Wholesale
Index

silk,
nylon

cotton,
and

synthetic

threads, and
rayon
fabrics
has

it

been

announced.
Mr.
a

Flanigan,

Vice-Presi¬

dent

Dil¬

of

lon,
Co.,

&
is

Reed
Inc.,
a

di¬

of

the

a

1

o

Busch

h

u

Peter

M.

Flanigan

u s

Estate, Inc.

Joins Keller Brothers

word
your

on

directed

agenda.

(Special to The Financial Chronicle)

Mass.

BOSTON,
Tock

has

P.

with

Securities

Brothers

Keller

Mitchell

—

affiliated

become

Co.,

Zero Court Street.

Lerner Adds to Staff
(Special to The Financial Chronicle)

to

its

income.

A

undeveloped country is not.
rich country there is no close

relation

between

the

Lerner

Co.,

10

Post

Office

With Renyx, Field
(Special to The Financial Chronicle)

BOSTON, Mass.—Paul E. Wag¬
has
become
affiliated with

ner

Renyx, Field & Co., Inc.

quantity of

With Tucker Anthony

and aggregate spending. In

country, there is. That is
why the quantity theory of money
quantitv

&

Square.

(Special to The Financial Chronicle)

poor

The

J.

Hudson, Jr. has joined the staff of

is capable

relation

in

Mass. —William

BOSTON,

developed
country
of holding
large amount of liquid as¬
and

very

sets

been

siik

of

yarn

highly

rich,

desires

has

nearly $30 bil¬

tity of money is not any precise
fixed amount. It mav be anything
within a rather
wide range. A

very
1948 to 1953

Flanigan

Co.,

y

Inc., manufac¬

growth potential,
rather
complacent

suggest that for a rich indus¬
trial country the "correct" quan¬

tries.

rate)

M.

director of Belding Hem-

a

n w a

A d

answer.

theory

has

little relevance for rich ad¬

BOSTON, Mass.—Joseph G. Mudarri is now connected with

Tucker, Anthony & Co., 74 State
Street.

vanced countries.

economic activity
should actively pro¬

If the level of

is

low,

we

high liquidity and a policy
of easy credit. If activity is run¬
ning very
high,
the monetary
authorities shouM lean moderately

Output

Index

Index

100)

240

203

221

185

—

100)

207

140

137

153

Monetary

I'epori, Washington, D. C., Jan. 31, 1955.

C.

For 1953 (1948

=

100)

124

1()S

111

105

"modest




Growth

Why do we do it? The
bogey
is perhaps the

=

the

Requirements
A

our

are

it.

For 1950 (1925

Hansen

Our

are

now we

below

For 1925 (1909

on

inclu¬

Potential

B.

Prof.

we

Stock Market Margin

also

A.

by

Committee

and

seriously

fear,

rector

Be'ow

Are

We

before

statement

Joint

1951-53

sive.

Economic

*A

complacent

GNP

year.

First of

against the inflationary pressures.

policy

should

make

a

contribution" toward the

Michigan Adds

(Special to The Financial Chronicle)

mote

'

ae

in

applies quite well to poor coun¬

(compound

TComposcd of: (1) Consumer prices; (2) Wholesale prices.

.

bearing
the

Increase
i900toi925

~
,

has

too

are

current

neglecting
priorities, but
that topic would perhaps get us
too
far
away
from
monetary
policy. I had something to say
about that in my statement last

adequate capital formation
implement
technological

to

In

TABLE II*
Percent

re-

°Ur potential

lino
line.

in

I

are,

The

a

cisely the forecast recently made
by "Fortune Magazine."
While
is

the

200

We

our

the matter of social

output,

money

for 1955 which is almost pre-

it

base,
at

about

1948-50.

72

figure.

covery,

stood

poor,

386

this represents a considerable

the

as

index

I

437

ure

avail¬

are

1923-25. In

period, using the low

needed.

money?

1958

a

in

the
and
the

I have tried to in¬
have no rigid

as

should

we

production and employment, and
we
should direct our productive
energies toward the things most

First, what should be our policy
with respect to the quantity of

I

Growth Models

reasonable

common

both

which

stood at 243

second

years

as

index, wholesale
combined,
(for

in

period
able)

years

1894-97

years

consumer

at

The

not

compares

price

prewar

using

ralios of outPut increases to price

for

down.

does

becomes
the

also

one

wpth
the
postwar
price
index after
prices had settled down.
Thus,

main

The

was

therefore

lowest

in prices—a five to four suits of this calculation both inratio- 'Professor Mills" short-run teresting and instructive. '

model

average

quarter.

believe

crease

it

growth
the

1953, not the peak

period

when

evident

Similarly,
dicate,

been

We are living in a century in

Frederick Mills, of the National Bureau of Economic Research,
surveymg 80 years of cyclical
movements in our history, has
shown that in periods of expansion" for eveiT *% increase in

1954

ai

prosper

rule with respect to price stability.
We should aim primarily at full

erably greater than

a§e-wise the increase in prices.

To illu-

the

TV/Txr

JViy

by

war.

in aggregate output has the s^ort recent period from 1948
substantially exceeded percent- to 1953.

Report.

last

plant, equipment and inventories to make good the accumulated shortages caused by the

crease

a model (Table "•
adjusted to conform to the re-

has

not.
A rapid
peacetime promassive invest-

ment in

experi-

strate this, I used

I)

desirable

the period in question the in- third (by way of comparison) is

*

in-

probable

been

output, we have had 8/10%

lays

we

I

as

any

inflation"

and

omy

has

required

rnone-

investment,

on

enced large price increases with which the long-run trend in
no substantial increase in output, prices has been upward. The two
Indeed in cases of hyper-infla- world wars, and to a lesser extent
tion output has often actually de- the Korean War, afford, of course,
creased.
the main explanation,
There are, to be sure, degrees
I think we might gain historiof Pure inflation. And I should cal perspective if we take a look
like • to suggest, to help clarify at the record of aggregate out0U1' thinking, the following gen- put and price trends during the
eral observation. I suggest that last half centruy (Table II).
I
at no time in our history, nor in- divide the half century from 1900
deed in that of any other country, to 1953 into three periods.
The
can it be "shown that price in- first is the quarter century from
creases have injured the econ- 1900 to 1925; the second,the quar-

liquistrong

automobile

in

drastic

have-been

would

tary

increase

the Past from the evlls °* m"

This

in fact is what has occurred.
a

to

cannot

highly elastic monetary

a

.

during the next 12 months.
now

new

society

a

the increase years ago by Professor Pigou) can
pretend to know the answer, but
in aggregate output.
But the usefully- be applied to test the unless someone can enlighten me
say>
massive
investment
laid the general health of an economy. to the contrary, I find it difficult
They are as follows: (1) Has the
rjse
groundwork for a large increase
to see what purpose, in the gen¬
crease jn 0UtpUf^
in output later and contributed per capita real income increased? eral interest, is served by a ratio
(2) Have the over-all gains been
lower than 75%.
Countries which have suffered
greatly to the slowing down of
countries wnicn nave sunerea
j
mnvpmpnt
hv
1Q4«
widely distributed? (3) Has there

most probably

to

a

Such

the word "pure"), I should
js a conaiti0n in which prices
wjthout any appreciable in-

committee

your

economy

need

adjustments

"price

of

«ptire

agreement among those of us who
that

we

Having

chosen to remove the main

straints

rose

greater price revolution of

earlier

the

Prices

century.

our

score

i

general

was

that

output changes."

depres~

suggest

cept

pulled

serious

without

of

The

duction

concept which I propose to call
"pure inflation," and I propose
to set this Over against the con-

considerable cut)

through

century.

commonly

is

what

to

system.

in-

foregoing the needed
in aggregate output,

else

crease

#"

rnerly told,
bulwark ol strength

price

without

reconsumption (and I
assume that political realism forbade
any
other
choice)
what
then? The only way remaining to
keep aggregate demand in check

this

do

large

assets, ready to take ad¬
vantage of changing investment
opportunities
and
prepared
to
meet
unforeseen
contingencies.
liquid

The record with respect to

(contrary

>•

-

without

well

function

not

just
twice as rapidly per annum in the
first quarter of the century.

the cut in wartime taxes.

^

1

per

greater than my rule suggests, or

icy.

stead,

at

are

permit-

between

made

erational value for monetary pol-

us

Rappuy

the ground covered in
hearings. Instead I pro-

be

Consider, for example, the sitpose a new definition — one, I nation in 1946 after the removal
hope, which might have some op- of price and wage controls and

—

stood

have

4.5%

believed) than in the first quarter

a

of inflation. I should like to pro-

in-

gressive
iM/M

Aivin

t

n

of

price increase substantially

ting

to strike a new note on an
old theme. I refer to the matter

programs, and a
highly pro-

H
'
If

|m."

e

m

n

r

in¬

output

1953,
rate

annum.

per

pose

housing

v^aggi

I

over

recent

supports, gov-

myy

brief time at my
shall not attempt to

the

In

to
the

at

prices at the rate of 1.5%

annum;

times

are

per
pe¬

a

has to

ahead.

sustaining

massive

The

There

1.5%

♦ »

-

»

-

monetary authorities should,
I believe, follow no rigid formula
with respect to the quantity of
money. A
rich advanced society
does not hold money merely for
transactions purposes, and there¬
fore the old velocity concept is
more or less meaningless. It can¬

tremendous forward push stability during the last quarter
better
is urgently needed, when a choice century is considerably

when

stock market margin.

<

farther.

bit

1948

riod,

of

,

The

rate

compound

rate

For the recent short

annum.

controls.

annum'; prices at the

siower

creased

in the price level.

creases

Concludes we are now

centage increases in the price level,

exceed by a consid-

the

at

per

much

gate 0UtpUt

the

percentage increases in

as

3%

of

rate

increased

of

*

moderate

a

of
inflation,
but
primary reliance should be placed
upon
fiscal policy and selective

3.5% per an¬
num;
prices at the rate of 3%
per annum. For the second quar¬
ter century, 1925 to 1950, output
compound

Thursday, February 24, 1955

.

containment

increases might of course devel- aggregate output increased at the

■■

..

Detroit,
Sr.

has

of First

Buhl

Mich.—G.

J.

Lafferty,

added

to

the

been

Building,

Detroit

changes.

staff

of Michigan Corporation,
and

members

Midwest

of

Stock

the
Ex¬

Volume 181

Number 5406

.

.

The Commercial and Financial Chronicle

.

2i

(933)

nation's

Economic Growth

out

the

directed.

right

Maintenance

amount

at

money

of

credit

given time for

a

of

and

givpn

After
sion

conditions

System

discussing forces deslined to support the future expan¬
business, Mr. Balderston points out the problem of

The long future of
is

of

one

great

our

economy

the

promise.

Fortu-

nately, the good business being
enjoyed on this side of the ocean
has

t

ns

e

r

coun-

a

p

abroad.

t

r

Euro-

produc-

pean

tion, at

all-

an

time

high, has
helped
this
nation emerge
from
last

year's

reces¬

sion.

two-thirds of the

once

expended

type

involved

of

alone.

It

has

to do with the

unaeriying tactors tnat iavor its
underlying factors that favor
industrial growth and expansion,
with

recently developed financial
mechanisms, and with the avoid¬
of

ance

would

inflationary
the

the

support
,

,

forces

high

that

future

destined

expansion

...

business

rates

of

will

population

the

increase

ogical development,

discuss the former

not

of

cept

to

remark

half

of

the

that

1960's

in

the

the

ex¬

first

estimated

average annual increase in the total labor force will be

nearly 1.209

thousand
each

against 700

as

The

rate

is

vance

of

so

ad¬

is

first

only

25

carbide

Co.

by

on

tipped

the

trial

a

tools

General

basis.

carbide

by

since

years

steels

to

_.

Vinci, when he sketched a flying machine nearly two and onehalf

centuries

been

ago,

turn

we

the

of

present

a

day

steels

plane wou'd be if

automobile

only
Neither could

ago.

oil now

wells,

the

reach

we

being pumped from deep
take

nor

of

care

the

high

temperatures and corrosive condi¬
to

be

found in

oil refining
manufacturing.

1955

a

plane

travel

for

than

to encircle the

cabin

be

he

able

to

speed

of

long

enough

earth, and have his

illuminated by

while

of

the

period

a

pilot

talked

glass bulb

a

with

the

ground
and with surrounding planes. Nor
could

he have

brought himself to
believe that the pilot could
peer
through fog at objects on
the
ground, while those who were

earth-bound

from

above

watch

a

played

a

man

and

being

observed
themselves

could

football

continent

sketching

was

being

game

This

away.
a

flying

ma-

chine at about the time
with

no

Columbus,
imagination, was ex-

less

ploring the unknown.
™

.

.

.

These
such

rapidity

as

with

to make obsoles-

pervasive phenomenon. A
Los Angeles nursery school teach¬
cence

four-year-

a

old

asked what a radio
was, she
found herself explaining it as tel¬
evision without
a
picture.
But
obsolescence is merely the

price

—the

welcome

pidity

of

price—of

technical

General Electric

jet

engines

ting

tools,

times the

pacity
*An
tb

If

to

produce

five

times

the

by

Governor

Feb. 12,

1955.




the

Federal

commercial
be

can

met

mercially.

The

products

farmer

conditioners

for

his

fectants

his

seed

for

materials
wife

for

his

dresses

fibers

com-

has

soil,

new

disin-

and

spray

orchard.

herself

Private

financial

have

also

cent

decades

been

financial

introduced

that

in

fact

the

blase,

as

and

The

direct
has

Sl,mers

to

the

of

cur

this

in such

us

children

their

capacity
to wonder.
The reproductions at
Williamsburg and Sturbridge of
facilities

the

of

"good
to the

old

financing

of

term

rreatlv

grown

Tt

incomes

to

acquire

an(1
and
auto¬

mobiles and household appliances
with more facility and at mod¬

payments

the

and

purchaser,

of

means

geared

total cost well

of the article

such
on

a

adequate down
monthly
repay-

the

and

main,

extended

with

within

The

of
insuring
growth without inflation involves
correct

a

rate

cover

acquired,

tutional

lenders.

Such

lending

has

tended

and

character of the credit to the

and

to

adjust the amount
of the borrowing,

purpose

to

schedule

its

repayment

the earning life of the facil¬
ity acquired.
Commerical banks
and commercial financing companies
have
provided
additional
higher-risk credit to business
firms on the basis of accounts reover

ceivable, field warehouse receipts,
and specific items of commercial
and industrial equipment.
This
has aided small- and medium-

lete

sized

the

of

the

stories

of

icerran, but lessened depend-

ence

the

uoon

well.
of

familiar

once

To

the

herb

garden

present fresh

results

search, such

of

examples

technical

antibiotics,

as

as

re-

sub-

a

marine powered by atomic energy,

isotopes released bv atomic fission, see^s to relegate to a past
era equally amazing
developments,
or

which

I

up
without, and
really very, very new:
radio,
radar, sulfa drugs,
color
television, and electric computers.

which

We

are

news

for

grew

are

just beginning to get the
adoption of such combv a few companies, in-

of the

General
Life

Electric.

and

Jo[m

Metro-

Haneock,

payroll, cost, and other
computations.
use

on

If

Uses Mechanical Devices
turn

we

ernization

is

to

not

introduction
vices.

The

finance, its mod-

of

confined

has

seen

tended

whether

to

to

lender
In

and

withstand
or

Much of it depends

ca-

upon cur central banking system,

The main purpose.of the central
banking mechanism, the Federal

general
these

economy.

private

fi¬

tions.
Thirdly, more of home-mort¬
gage financing has taken the form
long-term, amortized loans, in¬
of short-ferm, single-pay-

stead

ment loans. This

development has

borrower's

term-lending

this

form

also

gears

risk

of

to

business,

of

mortgage financing
the repayment sched-

ule to the

ability of the borrower
to meet his obligations out of in-

come.

Moreover,

the

guarantee

of

appraisal of the future

expansion that

the

sustain.

This

to

be

with

can

needs

made

jectivity.
Keep

Excessive

areas

with

ings.

an

the funds of

abundance of

Optimism

But

appraisal

not
enough.
optimism or

requires

those
sav-

My
like

keep

growth

amples

in

There

The latter have unusual

the

are

secure

overall

an

economic

and

scene

many

ex¬

history, however, and
ancient history at that, to

show how excessive and unsound
credit

expansion

development

is

It

economy

thwart

can

of

a

our

common

sponsibility to employ such
tion

will

as

enthusiasms

counteract
and

the

progressive

-

re¬

cau¬

wishful

permit the

full-

flowering of

an economy so rich
in promise and in
hope. A period

of expansion offers
generous re¬
wards for courage and hard
work,
but of all phases of the business

judgment.

is

leaders, but particularly of

of

the economy without
The need for expansion

in

not too

E. G.

Hooker &

only of business executives and of

opportunities to

pro¬

healthy

in a growing
is obvious and needs no

economy

judgment, and
the over-riding obligation, not

labor

more

we

of credit and money

prudent

bankers.

in

inflation?

excessive
in leash

ebullience

questions

basic question: How can
vide for continuing and

exercise of prudent

of the future

To

about

concern

these arises out of the

cycle it calls most loudly for the

In Leash

exceptional experience and
dealing with risks.

SAN

Fay Partner

FRANCISCO, Calif.

March

3rd

Edward

will become
partner

2

On

—

Henshavsr

in

Hooker

Fay,

C.

a

&

2

1

for¬

Montgomery
Street, mem¬

ward movements that appeared to

bers of the

be

solidly based were injured or
destroyed by lack of sufficient
caution
and
judgment to curb
over-expansion and over-borrow¬
ing. What I am suggesting is that
many of the great financial crises

New

which

partner
William

In

past generations,

have

business

many

become' part

tradition

result
and

cesses

ing

and

ments

of

and

the

were

credit.

these

un¬

ex¬

Although

forward

soundly

were

our

speculative

of

use

of

exuberant grant¬

too

a

of

many

financed in

move¬

conceived

of lack

cause

superfluous

c.isco

the

Stock

Exchanges.
M

r.

Henshaw

was

formerly

a

Staats

&

and

in
R.

Co.

prior

thereto

Edward

for

C. Henslhrrcr

Vice-President of

many years was

Brush, Slocumb & Co.

their

of

to

prudence.
cite

of the bulbs

cases

York

and San Fran-

beginnings,
they fell into difficulty later be¬

Mississippi

the

of

With Goffe & Carkener

It is

(Special to The Financial Chronicle)

historic

Holland,

bubble,

or

the

or

KANSAS

CITY, Mo.—Winfield
Lindley has become connected

W.

with

Goffe

railroad boom that preceded 1893,
because
many
of you are old

Board

enough to have personal recollec¬

&

Carkener,
Building,

Inc.,

change.

tions of

in

more

1926,

abroad

between

the

two

though sound

wars, even

ments had been

world

arrange¬

worked out initi¬

ally between responsible govern¬
ments
and
responsible banking
houses. There was the stock mar¬
boom

that

until

earth

after
the

were

its

sudden

return

wards

difficulties

illustrates how

(and

to

meet

which

uted to

of its

time)

was

have

of

a

too-

appro¬

so,

as

the

expansion of mortgage credit
tainable and sound?
ultimate

real

effect

antees

in

the

pose

augment

porate
of

when

mortgage

public

credit

large

empires?

of

Calif.—peorge

has

been

added

Merrill

Street.

LOS

1151

area

is

granted
cor¬

the growth

credit, other than that readily

ANGELES,

Calif.—

King Merritt & Co., Inc.,
Broadway.

South

Joins Sutro Co.
(Special to The Financial Chronicle)

LOS
L.

ANGELES,

McCOrmick

with

Sutro

Building. He

is

&
was

Calif.—Albert
now

Co.,

affiliated

Van

Nuy3

previously with

California Investors.

Joins Merrill Lynch
(Special to The Financial Chronicle)

PASADENA, Calif.—Thomas M.
Thiel has
of

been added

to the staff

Merrill

Lynch, Fierce, Fenner
& Beane, 575 East Green Street.

Mitchum, Jones Adds
(Special to The Financial Chronicle)

interest

personal

Did

Exchanges.

Dorothy V. Nowlin has joined tho

the under¬

for the Government

the

staff

staff of

existing

future problems of real estate dis¬

Is

Ed¬

King Merritt Adds

What will be
upon

estate values and

likely to

G.

(Special to The Financial Chronicle)

sus¬

lying debt?
Is the extension of
the principle of government guar¬

to

Sixth

we

quality of credit satis¬
factory in all areas of current
expansion?
Is the current rapid

its

A.

Lynch,
Pierce, Fenner & Beane, 523 West

in our current striving
healthy and continu¬

ing growth without inflation,
might ponder such questions
the following:
Is

the

need

values, and by the lack of
priate amortization.
provide

ANGELES,

Muellerschoen

contrib¬

estate

And

LOS

to

spoiled by

appraisal

with

With Merrill Lynch

J.

definite

a

Mo.—Lawrence C.

now

scheme cal¬

a

would

is

(Special to The Financial Chronicle)

to

real

to

Ex¬

&

and Midwest Stock

the financial advancement

liberal

Stock

Sons, 409 North Eighth.
Street, members of the New York

There

1929.

LOUIS,

Wickliffe

encountered

October

by the plan to merchandise mort¬
during the 1920's. The lat¬

culated

Midwest

mem¬

(Special to The Financial Chronicle)

ballooned

was

gages
ter

the

of

ST.

skyward by billions of dollars of
credit

Trade

Joins A. G. Edwards Staff

and the overborrowing
that spoiled our foreign

lending

ket

bers

of

recent crises. There

the Florida land boom ending

was

served

capital-scarce

much

as

analysis of the latter must be ap¬
proached with realism and ob¬

through

tap

appraisal

prophecy of future
happenings will permit. Inasmuch
as forecasting involves some
pro¬
jection
of
present
trends,
the

posal?

which

econ¬

as

omy

mortgages has facilitated the
development of a national market

foster

the

the

unexpected demand for repayment or failure to obtain renewal.

can

of

to

make certain types of direct loans
to farmers and to deserving small
businesses to fill gaps in the supply of funds from private institu-

areas

utilization

have

available

nancing techniques, public credit
agencies
have
stood
ready
to

Reserve Svstem, is to help provide enough credit and money to

high

the

addition

lessended

labor

a

funds

terms not only satisfactory to
the borrower, but sound for the

an

great

inflationary

make

credit-

on

the

stability.
Witness the apparent
strength and resilience of our fistructure

marginal

as

funds in the hands of
worthy businesses; they

strides in the direction of financial Like

nancial

well

as

intermediate- and long-term

more

de-

to

mechanical

field

firms

borrowers.
These newer types of business
financing have tended to place

of

Finance

of

happy

to

and

problem

the

within the life

es¬

of

lending

tribute to the recent rapid rise in
stock prices?

as

fa¬

help

would

identifiable as security loans to
brokers, dealers, and others con¬

argument.

ness

specific

would

structure

international

en

in(«siila)a with ?ow
Llh low

active

as

transactions.

borrowing.

con-

living then and now.
Not only
has
refrigeration displaced the icebox, and made obso-

modes

it

revival,

day-to¬
day
financial
relationships
re¬
quired as underpinning for long-

skill

individuals

middle

the

A

'twenties,

the

possess

concerns has been
developed
b.y commercial banks, life insurance
companies, and other insti-

evidences

dull

Financing

Of Consumers

erate

the

of

market for

a

international

Furthermore,

view

Direct

Secondly, term lending to busi-

times

to make

to

re¬

artificial

in

satisfy her taste and
her vanity, even though

wives of other farmers dependent
on wool and cotton.
In

in

help promote
and growth.

stability

Growth

aHas
ables

of

acceptances,

of

tablish

financing,

resurgence

acceptances.

country,

cilitate

is

mechanisms

His

that

harder

banks

by borrow¬

ings from the Federal Reserve.

ments

chemical

shocks,

Baidei^ton

"p*nns^va"fi ""nkc™°

of

cash

different

deflationary.

-

address

for

basis

five

need

by

insurance; stock market credit is
regulated; a Federal agency is
charged with the responsibility

sound

cut¬

carbide

would

factory and machine

and

—-—-

ra¬

were

without
it

the

advance.

protected

One chemical company, Carbide
and Carbon, makes more than 350

a

reports that when

er

are

In

no]itan

come

tions

been

puters

changes have

and

savings banks, and of sharehold¬
ers
in savings and loan associa¬

has

eluding

.

Technological Changes

are

commercial

cost.

gifted, the

the

would

faster

sound

that

in

credit

and chemical

ability to peer into the fu-. days" drive home, even
unture, he could scarcely have conimaginative, the sharp contrast in
himself

decision

addition, the funds of most

or

few decades

a

with

vinced

In

limited

we were

to the steels of

profusion

Had

were

them,

imagination of. either Leonardo da
Benjamin Franklin.

the

Electric

If

great advance surround

or

re-

the technical ad¬
vance
is illustrated by what the
design, weight, and construction

rapid that recent in¬

da

of

that

foreign

recent

precision

depositors

needs

It

ventions would have staggered the

Vinci

for

this

Pr^ej™estor,1the

thousand

technological

questions

The requisite proced¬
bases

by the extrusion method
for protecting the interests of the
developed by the Heintz Manufacturing Company from an idea or-•
sec»ri«es
markets; and the emergency
iginated by German scientists.

gratify
during the first half of; they bring

year

the current decade.

in

placed

tions
to

.

might be mentioned

and of techno

I

pitfalls

endanger steady growth.

Among

production

one

making shells bids fair to be

cut

country

by cutting at five

Already

from

problems

hours

man

to six times the rate.

shipped

this

mechanistic

not

save

directed to the

Canby Balderston

on

proved.

too^

only outlast the toughest
high-speed steel
by as much as 100 to 1, but they

My analysis,
however,
is

C.

rigid,

involves

and

ures

be conducted

can

of

It is

continually being studied and im¬

These

of

basis

rules, but
judgment.

inflation curb.
force.

daily—adjustments.

not one that

requires shrewd judgment, and bankers share in the
Stresses maintaining a high quality
an

task

a

—often

responsibility of this job.

as

central

heart of

very

observation of the intricate
money
market mechanism and frequent

insuring growth without inflation involves a correct and pre¬
cise appraisal of the future rate of
expansion that the economy
can sustain.
Adds, to keep excessive optimism and ebullience

of credit

banking problem.
It
that requires constant

is

of

in leash

is at the

the

Governors, Federal Reserve

bankers'
in

bankers'

is

in

the

icy

Without Inflation
of

Finally,
there is

this goal that Federal Reserve
pol¬

By C. CANBY BALDERSTON*

Member, Board

physical resources, tech¬
skills, and manpower with¬
inducing inflation. It is toward

nical

LOS

ANGELES, Calif. — Wil¬
Reimers has joined thi
Mitchum, Jones & Templeton, 650 South Spring Street.
liam

H.

staff

of

.

The Commercial and Financial Chronicle
22

.

Thursday, February 24, 1955

..

(934)

\

the

The SEC and the Mining Industry

effective

the

of

date

Securities Act to the close of 1954,
made

totaling in
of

cess

offerings,

3,600

over

Over

4 0 0

state-

filed

of

sion

mately

does

Ralph H. Demmler

mining companies in the explora¬

tory or developmental stage. Ex¬
empt offerings of mining com¬

panies—that is, offerings aggre¬
gating $300,000 or less made pur¬
suant to our Regulation A—have
since the inception of the Act ag¬
gregated approximately $293 mil¬
involved

separate offerings

2,850

about

and

vir¬

were

tually all by companies in the ex¬

has

deterred

exploratory

mining
to issue

by

ventures.

offering

circular

adopted

was

of offerings

case

less

or

by

The obligation

offerings
an

investors

to

in

1953,

receiving broad

investors

to

For

shows

it

face

its

on

de¬

Commission

a

to

other attitude would be

any

lion*

comment,

istration

and

statement

half truth, what should we do—

a

should
the

issuer

ceeding

stop-order pro¬
an injunction?
If

by

a

by

or

such practice

am

offerings with an ag¬
offering price of more

than $66 million. If one may

the

sure

The

in.

fall

roof would

Commission's

lished

practice,
the

advise

and

know, is to

of

informally

to

give

portunity to amend

so as

the

estab¬

long

as you

issuer

deficiencies

the

op¬

to avoid

necessity of formal

proceed¬

ings.

by
fice

issuer

advising

deficiencies

of

is

sent

While

judge

that

the

the

issuers

complaint

staff
to

things

say

buyers of securities
that

is

sometimes

the

made

compels

that

drive
I sub¬

away,

staff

is justified in
the staggering workload car¬
by our Denver Regional Of-1 warning registrants in those in¬
stances where it considers that the
staff, the requirement of an

offering circular is proving to be

statutory

no

adequate disclosure

great drawback to those inter¬

ested

in

financing

uranium

under

other

or

panies.

Last

com¬
offerings

uranium

,because

cance

an

have

"they

signifi¬

show

that

the

mining business in particular has
stopped

by

the

securities

Differences
It

must

of

as

to

Opinion

berecognized

what

the

to

necessary

the material

are

making

facts

of

an

investment decision. Consequently,
there
of

are

bound to be differences

quate

Let

us

deceive

not

into

thinking that any
requiring fair and ade¬

statute

disclosure

can

be

adminis¬

tered without differences between
the Commission and

administration.

Those of you who work
tration
statements
and

The Commissioners

under

are

duty to administer

of laws which

technical.

are

We

law with the

a

group

both strict
vested

are

power

and

a

and

by the

regulations required in the public
or

investors.
hard

for

bargainers.

all, in many
atives

of

sented

The

protection

of

necessarily be

We

are,

after

the represent¬
otherwise unrepre¬

cases

the

public.

sion

is—as
to

the

it

for

our

Commis¬

always has been—
administratively

provide
best

ments

thors

assurance

*An
address
by Chairman
before the National Western

that

the

Demmler

Mining Con¬

ference, Denver, Col., Feb. 3, 1955.




know

take
of

how

on

regis¬

offering

many

place among

the

that

the

approved

or

the merits of any se¬
that the Commission has
found that the registration state¬
or

ment

is true

face,

and

accurate

that it does not

or

omit to state

I cannot

fact.

a

its

on

contain
fact

of

statement

untrue

an

or

em¬

statement

argu¬

the

au¬

before

it

is filed.

While in
of

phasize this too strongly. Again I
say, the ultimate responsibility for
of the statements made,

the truth

whether in prospectus or offering

circular, must in the nature
things be
the responsibility

the

disputed

heat of

positions,

discussion

registrants

from time to time
things and think harsh

may

say

harsh

things.

I

think

it fair to say that the com¬
ments of the Division have fre¬

quently
material

resulted

in

eliminating
which, if included, might

furnished

ground

assertion

of

for

you

staff

course,

that the
have

no

and

don't need

I

Commission

Requirements

Our disclosure

to
and

tell
its

mystic omniscience

ment

are

a

true.

registration state¬
The

and Mining

from

ultimate

requirements for
have
evolved

securities

mining

experience
the

with

panies

and

they

vary

stage of development of

the company.

Going mining

com¬

sufficiently akin
companies that

are

forms

general
their

use.

are,

to
our

suitable

are

for

main requirements

The

in addition to financial

statements,

of its

a summary

earn¬

ings for the last five years,

de¬

a

scription of its business and of the
securities to be
to which

use

securities
mation

to

as

the proceeds
to be

are

the

is

required

They must

their

ton¬

ore

re¬

requirements

restricted

not

stock¬

estimated

grade of

These

serves.

manage¬

and

Disclosure

and

nage

the

production.

ore

of the

put and infor¬

remuneration

disclose

also

offered, and of the

concerning

ment's

are

to

mining compa¬
nies; it is true of all extractive
industries including oil and gas

which
and

in production

actually

are

possess

record of earnings.

a

This information in

our

is

an

indispensable to

judgment
evaluation

of the investment value of

extractive

industry

in order not to be

made

be

reserves

misleading must
basis

the

on

going

a

company.

Manifestly, estimates of

including the use to which

gram,

the

promotional features

the

put,

deal

costs of dis¬

the

and

ex¬

ploratory company, experience in¬
dicates that $300,000 can accom¬

of

recog¬

exploration.

considerable

plish

on
its property seeks
only for exploration, but
development and con¬

quantity
funds not

for

also

struction

of

mill

a

other

or

op¬

erating facilities, the necessity for
disclosure

clearest

the

such

of

nature

the

of

proposals

authorize the

to

as

re¬

sponsibility both for the facts and

our

reserves

The in¬

registration forms
in

are

accordance

ap¬

For companies in an ex¬
ploratory stage only, we simply
require
a
description
of
the

their

for

of

In fact,

definitions
ore" and "probable
requirement that re¬

"proven

ore" and

our

estimates

be

these

types

strict

accordance

of

our

ore

to

restricted

to

bodies

in

the

is

views

of the

statement

a

by the

and

sources

of

the

received

sums

from

company

and all

any

breakdown in detail

a

expenditures made by the

of these
financial statements is largely to
The

company.

indicate

purpose

consideration

cash

the

paid for the property, particularly
to
insiders,
and
the extent to
which

funds

have

been

for

used

of the property as
against, the extent to which they
exploration

have been used for other purposes

such

as

and

insiders.

to

payments

promoters

the

In

of

case

Regulation A offerings, the finan¬
cial statements need not be certi¬

fied
but

independent

by

be made

can

of

distinguished

the

of

accountants
the responsi¬

on

that

there

are

known

no

ore

deposits. No maps, geological re¬
ports or other data are generally
required. However, the

of such

use

and reports is not prohibited

maps

providing they are not misleading.
material is used, it is
reasonable to expect our profes¬
view to

determining whether they

support the representations made.
is

It

ploratory

for

an

ex¬

to make refer¬
offering circular to

company

in

ence

unusual

not

its

producing mines in the vicinity of
its

property. There can be no
objection
to
this provided the
reference to such mines is quali¬
own

in 1909 is still

engineers

a

classic in its field.

professional

upon

our

staff

mining
both

in

Washington and in our appropri¬
ate regional offices here in Den¬
and in Seattle. If need be

consult

with

agencies

Mines,
the
and

such

other
as

the

they

government
Bureau

of

U.

S. Geological
Survey,
Atomic Energy Commission
the
Defense
Minerals
Ex¬

ploration Administration. Our en¬
gineers are available for consulta¬
tion with company representatives
at any time.

If

reserve

reserves are

estimates

are

made

or

claimed by companies

with

information

reference should be

maintain

promoter's services
much

be

made

do

we

re¬

The

be worth

may

nothing to the

or

dollar

actual

the

transferred

corpora¬

cost

the

to

claims

of

enterprise

by

promoters be

shown so that the
determine the rela¬
tive contributions being made by
investor

such

may

promoters and himself.
If
acquired by the company,

in consideration of shares of stock

without

are

value

demonstrable

their

beyond

is

forth

set

been

claims

the

that

acquired

for

have

specified

a

number of shares. This eliminates
any

pretense of phenomenal value

measured by

the

issued

shares

any

present

value of the

par

claims

for

known to have

not

occurrences

ore

or

of produc¬

assurance

tion.
the existence of op¬

In addition

tions

to

purchase

of

hands
writers

stock
and

promoters
be

must

their

should

be

in the
under¬

described

and

possible

diluting
effects
upon the investors' participation
in
future
earnings
and
assets

clearly disclosed to the

investor.
Other emoluments of promoters

the

neces¬

to make the reference not
misleading. Ordinarily, any such
supplemented

sary

with

information

the

to

as

a disclosure of such fact,
such proximity the explora¬
tion or other work done upon the
property of the company increases
the value of the property owned
by insiders without the risking of
any funds on their part.
Let me discuss briefly the in¬
formation required as to the use
of proceeds and the size of under¬
writing commissions. If the de¬

should be
if by

tailed
use

breakdown

of

the

and

promoters

tent

which

to

extends into the

mine

exploratory

com¬

pany's property or that any other
important geological relationship
has been established between the

this

properties,

Other

clear.

should

facts

made

be

that

re¬

may

quire disclosure are those known
to the issuer concerning the size

profitability of the operations
the producing mine. If these are

and

at

unknown

Where

should

facts

such

be

clearly indicated. The in-,

Of

of

acquired without
previous geo¬

any

investigation

vital

it

is

of

im¬

importance also is in¬

concerning

the

pro-

determine

then

the

for.

motivations

primary
financing.

The • public
comments on
the
financing of uranium companies
in
magazines, periodicals, lunch
table
conversations,
and
street

reflect

talk

agreement

universal

almost

on

two things:

(1) Those who seek capital for
enterprises should give the

such

people the facts.

Those
who
invest
their
in such enterprises should

(2)
money

facts.

find out the

Securities

The

formation

logical

.

been

benefit

company's prop¬

in

can

staff

has

erty
the

a

paid

vestor

for the

producing

funds

the

will be

proximate distance between the
properties. If no representation is
intended that the ore body being
the

officers, directors
will benefit
by

by investors will be put to work
in
exploration and development

himself

at

the

is given,

payments to them out of the pro¬
ceeds
of the
public offering is
made evident. Conversely, the ex¬

ap¬

worked

intended

of the

proceeds

extent to which

by our forms are required or re¬
quested for use of, our technical
some

But

promoter's contribution and his
compensation for it should be set

dence

will have

statement

forth clearly and not buried.

Only

that they

limitation

The

quire that both the nature of the

fact.

so

false

no

portance to advise investors of this

for

efforts.

regard thereto.

material

called

Commission to pre¬

promoters shall take

the promoter's rewards, in¬
sofar as the Act is concerned, is

stated.

information

not

upon

registration statement or
offering circular, underlying data
and maps, including sample-assay
results,
drill
data,
and
other

their

the

does

company

fied

We

Act

should also be portrayed. For ex¬
and its
ample, if they own or have an in¬
promoters. For purely exploratory
terest in properties adjoining the
companies it is apparent that there
claims
of
the
company,
there
should be a clear cut statement

bility

mining engineer,
named Herbert C. Hoover, whose
"Principles of Mining" published
a

deter¬

of

cost to the pro¬
moters,
our
financial statement
property, its location and other
requirements for exploratory com¬
data of material importance, plus
(whether their securities
information as to the promoters, panies
are registered or offered pursuant
management and their transac¬
to
Regulation
A)
prohibit
the
tions with the company. Financial
placing of dollar values upon such
statements
consist
solely
of
a
claims. In these cases a statement
statement of assets and liabilities,

with generally accepted engineer¬

ing usage.

what

scribe

to

purpose

claims

is

sional staff to examine it with the

structions in

investors

enable

to

tion. The potential investor must
these
determine that question for him¬
companies
utilize
the
exempt
self but he should have the facts
offering privilege afforded them
before him.
by Regulation A. Manifestly, if a
These
are
our
fundamental
company
without knowledge of
reasons for our requirement that
ore
occurrence
in
commercial

other testing procedures.

engineering

to

Therefore the great bulk of

Where such

in

by which they determine that the
statements in

of companies:
The
property, the
management, the
exploratory or development pro¬

parent.
SEC

the

civil

possibly criminal liability.
Of

of
of

those who make the statements.

ver

successful

Problem

problem

how

circulars

have

The

for

the

We must

registrants.

duty in

many cases to prescribe rules and

interest

imply

or

has

upon

curity,

serve

opinion.

ourselves

investment analysis of

an

types

principles, in¬
cluding appropriate sampling and

from raising capital.
Con¬
sequently, the question is one of

laws

sworn

represent

nized

business situation exact standards

neither business generally nor
been

and

that it is
impossible to formulate for every

that office with

statistics

fair

not met.

all

aggregate proposed offering price
of approximately $52 million.
These

of
are

projects,

232

Regulation A, virtuallv
made in

standards

exploratory

mining

year

exploratory
were

to

Commission

holdings.

The letter of comment
the

mit

ried

Act

here

introduced,

were

these

and completeness of tribution and underwriting.
disclosure made. In fact, the
In the case of the purely
makes it unlawful for anyone

most industrial

lie in wait and surprise

we

tance to

accuracy

the

finds

something which is not in con¬
formity with the legal require¬
ments
or
which appears on
its
face to be a misrepresentation or

In the year 1954 there were

of such

gregate

the

a reg¬

including comment from those in¬ after an examination of the regis¬
terested in mining.
During that tration statement or offering cir¬
cular by members of
the staff,
year there were 127 mining of¬
ferings with the aggregate offer¬ including a securities analyst, an
ing prices of issues of this char¬ accountant, an attorney, and in
acter amounting to over $18 mil-', some cases an engineer.
337

examination of

consequence, our

Companies

Now, if our staff looks at

first

after

public

corresponding

a

re¬

our

offering circu¬

an

companies in the
$300,000

that

believe

be distributed

of

take

I

quirement that
lar

by

abandonment of its duty.

any

ploratory stage.
not

Commis¬

effectiveness

create

ficiencies.

$241 million is represented by of¬
ferings made by more than 375

We do

papers

on

whether

approximately

This

mining

of

tial

no
period of profitable ex¬
mine the
basic
ploitation. The following areas of
The
information are of prime impor¬ promoters.

yet

of

the Commission to look at
each registration statement or of¬
fering circular to determine

Of

amount,

lion.

not

duty

se¬

curities.
this

of the prop¬
companies.
As

investigations

erties

passed

of the

power

suspend

make

to

seek

we

ing,

that

injunctions.
It is impossible to
honestly that such a power

$ 4 5 0
of

usually

reason

approxi¬

million

know

not

Here

get into

in

stop-order proceedings or to seek

effec¬

tive in respect
of

to

not

do

enterprise.

the prospectus or offer¬
circular a short but clear
companies owning claims without story of the circumstances sur¬
known
ore
bodies to companies rounding the promotion of a new
which have reserves but have as company. This portrayal is essen¬
Companies in the exploratory or
stage
range
from

development

be

responsibility,

assume

statutory

companies )

do

We

the

their contributions

and

moters

ing circulars gives no sanction to

Recall, if you will, however, the

mining

became

and

reason¬

the

let

the

of

the

funds collected from investors will

provisions of the Act.

ing companies
(exclusive

basis

the

of

that

argue

should

review

for

registration statements and offer¬

penal and civil, under the liability

ments of min¬

coal

wfto

those

are

on

We

facts.
field

the

all

issue.

a

Commission

sell

registra¬

tion

There
the

of the

merits

the

of

Commission

made

are

or

racy

registrant file
papers
which it
thinks follow the rules and forms,

ex¬

$ 9 0 0

million.

business

a

permitted does not con¬
guarantee of the accu¬
completeness of the dis¬
or
an
approval by the

a

closure

available.

mining companies, other than coal,
have

about

facts

A is

stitute

the SEC acts relating to
the mining industry, indicates that neither business generally
nor the
mining business in particular has been stopped by the
Securities Laws from raising capital. Discusses "disclosure"
requirements as applied to mining companies.
the

registration

a

exempt offering under Regula¬

tion

Chairman Demmler, commenting on

From

that

fact

The

an

Commission

Chairman, Securities and Exchange

basis

ableness of the estimates.

trant.

statement has become effective or

DEMMLER*

By RALPH H.

regis¬

of the

is that

figures

effect

says

the

have

and

we

our

part in

a

Act

same

in that

confidence
of your

1933

in

common

You
job to do

seeing to it that the

investor have the

be

of

thing.

facts

available.

can

his confi¬

way

retained.

And

on

that

depends the prospects

industry.

.

.

[Volume 181

Number

5406

.

.

The Commercial and Financial Chronicle

.

(935)

basis

the

The Financial Futute
Of Atomic

Energy

the

from

is

When

I

appeared

committee
were

on

assets

of

before

May

about five

11,

months

Fund

our

billion dollar private
this

1954, we
old, and
about

were

are

little

now

a

old, and

year
assets

are

excess

of

such

nance

location

the

„

known

as

mutual

....

,

still,

say

be

let

critics,

the

higher

us

than

other

industry.

classes

they

of

The

have

phenomenal is of par-

the

the

of

view

public's

earnings

b

But

high

to this

*

U.

the

as

Canada

are

S.
the

and

If

one

figure of 3 x $200 mil^goo million. To be sure
a

this

figure

truly

is

should

we

mum

mini-

a

that

remember

0 u j b
African production is
mounting rapidly and, by the end
o£ lg5g ma
well cause that area

g

to

appraise how rapidly the atomic
industry is now growing, and how

seiJ growing.

important

at

or

..

that

even

attempt

an

Jignifk^ncT lTecause itV ^ff "growing'

fleets

an![ve

...

Newton I. Steers, Jr

nave

that

naturally

answer

involves

question

..

stocks.

too

are

that basis.

on

This rapid
growth, which

if

.

concede

.

what

areas

a}3°
are

areas

of these is
less important now than the U. S.,
H may well be the other is more
important. On this basis, we can

sophisti-

more

relation to

in

as

These

other

two

Belgian Congo.

atomic stock prices will

fund

even

,

But

securi-

tkular

ed about
that

be

t

"

the

of

one

It appears

rials

(radioisotopes), mate¬
resulting from fission (fis¬

sion

products), and radiation in¬

struments.
rp,

.

,...

leading

three

areas' We know that 1954 production from South Africa was in

.

_

,oLhe million for
la-S 1flgUre,m
-

the

.

T

specialized
are
There
are

,

equipment
equipment
various

_

,

J ^

$00

mi

supply.
for

reasons

believing that
figure of $107

previous

since ^i?n
200 mil¬ First

On this basis, the

know

acCom~

t+

lb.

million can
f -hf artificia y
materials endrr -ul

•

lion dollar mark should be reach-

Industry

flnJ

Ca?u

per

h+tVe.ab.°Ut.1^0Ubi?d*

of

all, the $107 million tig-

UlG Wf AEC
aSnVed hum 3 Perce"1"
of

age

purchasing, as belumber,
concrete,
etc.,

tween
which

not

are

atomic

uniquely tied to
and mechanica

activity,

engineering equipment,

electrical

engineering equipment, and oloctronic equipment, etc., for which
atomic
energy
has
very
pronounced
toe

implications.

there

has

been

shift away from

penditures
for

decided

a

construction

toward

operation

were

Since that

ex-

expenditures

(e.g.,

operations

41^ of fiscal fiscal expend54
of
56 ex-

itures, but 77%

penditures as budgeted).
Operating expenditures are much less
concerned with items

like lumber
Such an appraisal is made more excess of $25 million and was over
and concrete.
Further, the AEC
Our fund has been presented as a difficult by the concealment, most
five times that of 1953. Furtherhas
put increased emphasis on
vehicle
for
capital appreciation °f ^ no doubt necessary for secu- more, our total figure is based on
fixed price competitive bidding as
and not for income. The investing
reasons, of many of the key the inclusion of other minerals
rts
experience
has accumulated.
public evidently agrees with us figures.
The problem is further important to atomic energy, such
Operational expenditure again is
that atomic stocks have a greater complicated by the fact that many
as zirconium, beryllium, thorium,
much more susceptible to fixed
erowth notential than anv other
"atomic" companies are in other and lithium. The lithium industry
group
of stocks which could be fields as well and the extent of
in 1955 will be over $20 million, price buying (on which the seller
assembled
their atomic involvement is not based on the expected sales of the can make a profit). For these
reasons, it appears reasonable to
always easy to estimate. Never- two leading producers alone.
Some people feel that +Vl_ „llV,
the pub-

financial future of atomic energy.

i

lie

teyond

what

port, that

earnings

atomic

sup-

can

prices

price to

earnings

is,

when
wnen

high

ahnnrmallv

abnormally

nign,

present earnings.

as

result,

a

based
cased

on

on

The question, of

onnrse
is whether future
course, is wnetner iuture earnings
earnings
will
sufficiently
increase
in
a
short enough time 10 iustifv pui
snort enougn time to jubuiy pur-

chase
to

at

present

whether

say

earnings will

That

prices.

increased

is

future

prices to rise
a sufficient
amount, and soon enough, to provide justification for present purcause

present levels by

over

t_helegS( let

outline the various
the private atomic
energy business and infer as much
segmenfs

t

a

Zu

I

Radioactive Materials

it

;

Passing irom uranium to raaio

aii_imDortant

.impor.tant

•

active materials and radiation
otrnrY1pnt<;

•

W1th

portions of the private

aiomic inausiry at tne end oi lyoo.
comparison,

the figures

DiiPft this committee in

P
are

ajso

v

Mav

+

,

of

is,

stock

course,

prices

tw

a)?1®l°Pe

be

may be expected to re¬
high in relation to other
stock prices as long as the atomic

And particularly is this

have

multi-

voi1)me

to be

tion of the

a

more

first,

direct func¬

even the sec¬
earnings than of
themselves.
To
hold

or

ond derivative of

earnings

otherwise is

cannot,

or

to

imply that prices
at least will not, rise

potential earnings have

tually

been

realized.

hold to such

a

notion

Those

ac¬

who

will inevit¬

ably find themselves lagging be¬
hind persons more willing to act
on, not earnings, but prognostica¬
tions of earnings; lagging behind,
and buying at higher prices in¬
stead of selling at higher prices;
lagging behind and, in effect, pay¬
ing capital gains to earlier worms.
We

must
a

not

forget, of course,

company

which

enters

a

field and derives the benefits

extraordinary

benefiting itself
its

growth is not
alone.
It bene¬

customers

—

the

public.

Economically speaking, the lead¬
of

achieved

such
a

a

statement

have

company

more

efficient alloca-

by Mr. Steers before the

Committee

on

further

intermediate

as

crystallizes

obstacles

are

overcome.
In the meantime, the
public has demonstrated its faith

the

future of

large

the

atom.

Both

and

small investors have
their wiiiingness to back

shown

the new capital sources with
the huge amount of liquid savingg

they

hold

throughout

this

nation.
Great emphasis should continue

be

to

put

government-spor-

on

technical

sored

development.
development
proceeciSj an(j we may hope accelerates> the procedure to allow
prjvate industry to apply its energy and ingenuity must also be

However,

this

as

(developed.
an(j the

Passage of the act
newly-established market

for plutonium and U-233 are im¬
p0rtant milestones. The advance
of the varigated atomic frontier
wjji be prooortional to the incentiveg
stimulating
that advance,
Tbe uranium industry has shown
bow prjvate enterprise can perform

atomic job when

an

iowe(i

it is al-

to.

Subject always to the
paramount controls necessary to
the national

security, the uranium
jncjustry should serve as a model

for the other

industry.

phases of the atomic

In this fashion,

the infant giant will mature most rapicjiy and in a manner consonant
wjth

American

the

freedom.

The

for free

enterprise in the

is

arena

tradition

fundamental

simply

American

the

that

atomic
to

cost

of

public

of

basis

atomic

p10fits will pale into insignificance
when

compared with the

savings
which
wjn arise from the energizing effect 0f these same profits,
the

to

American

people

totalling

Atomic

Energy,

Washington, D. C., Feb. 8, 1955.




27

40
200

840

uranium

Molybdenum
Corporation

Gunnar
Foote

Mines

research

1955

to

621/2

371/8

13.75

14

151/3

48V2

Corporation

19

44%
291/2
431/2

11

17

24

41

15

28%

90

31

47

lOOVs

111

61

Engineering
Dynamics-.
__

Carbide

__

_

___

75

submarines

"Nautilus,"

reactor

submarines

in

and

portion

will

be

of

bought

allowing profit to the
billion dollar private
industry is not here by

If

a

end

of

1955,

well

may

us

because

In

be

see

it

here

how

their

of

Table

II

companies
has

11

83

the

the

com¬

It

which

given

are

Corporation

our

emphasis

greatest

should

be

to.

that

these

the

noted

stocks

791/8

39

52

52

undergoing the greatest apprecia¬

99%

Westinghouse Electric

tion, i.e., with the advantages
hindsight.

Average
Dow-Jones Industrial Average

294

255

406

In Table III

38

75

Price-Earnings Ratios and Yields of Atomic Companies
Price-Earnings

Uranium

Ratio

cated
Average
Yield

and

inclusive

more

October

were

of

computed

of

vary

Uranium

Uranium

Mining—Africa

19.5

4.8

Uranium

Processing

20.0

2.6

benefit

15.7

4.0

from the

30.9

2.2

before

37.5

0.9

By-Product

—

__

Uranium.

_

__

.

Lithium, Thorium, Zirconium, Beryllium
Materials

and

Radiation

Instruments

as

might

be

expected

varying degree to which the

—

panies

involved
from

are

com¬

expected

atomic

growth

to

and

varying periods of time

these

companies will feel
the impact of atomic growth.

DAVENPORT, Iowa — Russell
Meyer is with Beyer-Rueffe!

&

Co., Kahl Building.

Ralph Gardner Opens
(Special to The Financial Chronicle)

LEXINGTON, Ky.
Gardner
1737

engage

the securities business.
ner
er

was

formerly with Westheim-

Chas. A. Day Adds
(Special to The Financial Chronicle)

of

Charles

A.

added

Day

of

the

Boston

atomic industry will be necessary

Investors

24.6

2.3

in

England, Inc., 68

Diversified Atomic Activities

O'Connell and Holley M.
have

been

added

to

the

staff

of

Planning Corp. of New,

'

•

.

Adds

BOSTON, Mass.—William IT.
Sheperd.

6.0

the

Ex¬

(Special to The Financial Chronicle)

10.7
''

very

Inc.,
mem¬

Stock

Investors Planning

Application of Atomic Power

of

Co.,

change.

substantial

that

to the staff

&

Washington at Court Street,
bers

1

Mass.—Robert. W.

5.0

evident

in

Mr. Gard¬

& Co. in Cincinnati.

3.3

financing

—

has
opened
Liberty Road to

17.0

appears

;

_

Ralph L.
offices at

Atomic Energy Commission Contractors-

It

Rueffel

W.

9.3

Suppliers of Special Equipment...

many-

partner in

a

(Special to The Financial Chronicle)

Main has been

the

Hastings,
investment
for

previously

and

from

Mr.
the

Detroit

BOSTON,

1

4.3%

in

of

widely

Russell

Livingstone, Crouse & Co.

fig¬

as

Yields

1954.

price-earnings ratios

14.1

Radioactive

as

H.

—

Joins Beyer

are

Mining—U. S.
Mining—Canada

_

R.

given. These cover some
companies in the fields indi¬

ures

V

Materials:

selected

not

were

TABLE III

Raw

S.

in

been

years, was

company

144

Building.

has

business

on

191/4

7%

53/4

obscot
who

activity.
given

"

Vitro

DETROIT, Mich.

Hastings has become associated
with Baxter, Williams & Co., Pen¬

certainly

atomic

figures

Hastings

(Special to The Financial Chronicle)

now.

atomic

Russell

H.

now

annually.

panies have fared, without imply¬
ing that they have so fared solely

6

Consolidated

which

millions

basis

a

Let

372

61/4

33

Union

2

41

3%

_

It

135

11

___

from

expenditures

should be here by the end of 195u.

220

15

Chemical

Lithium

results

atomic
to

of

atomic

61

11

Lindsay

five

the

45%

23

Homestake Mining
Beckman Instruments

produce urani¬

reactors

several

Over

43

2.25

to

governmental

seller.

1953 High

15

Mineral

General

on

% Increase

33

___

are

which

uranium salts. An¬

increment

-

these

Price

High

oxide

addition

Capital Appreciation of Selected Atomic Companies
1955\

there

millions

In addition, it is known that the
Navy has budgeted funds for at

TABLE II

Low

million,

metal and

least

3,

Hastings
With Baxter, Williams

subject to profit making. One
increment results from the large
and growing business of
treating

some

Feb.

be

are

for

107

supply

$840

additional

many

600

459

equipment

will

Billion Dollar Private Industry

run

Specialized

which

In addition to the figures above

non

325

Radioisotopes and radiation instruments

AEC

H. Russell

million.
A

End of 1955

Uranium and other atomic minerals

the

on
a
basis
allowing a
(excluding items included
previously) will be a I least $200

other
Rate by

Vanadium

For those of

with a mathematical back¬
ground, atomic stock prices may

for

bought

the last

dollar

th

d

in

May, 1954

so

you

Joint

shinments

ra-

TABLE I

try is itself growing.

ers

show that

more than
they represent five times to over $30 million. No
nunimums which can be support- one can foresee how large a mared wlth reasonable assurance, on ket may develop for the class of

Climax

be said

available

increases.

,thls- 1

if the rate of growth of the indus¬

fits

ones

increases

j? T.able I are minimum figures tured has increased

industry is expected to grow more
rapidly than other industries and,
hence, permit higher earnings by
the companies engaged in it than
by other, companies not so en¬
gaged.

ancj

un-

made

profit

smpmems nave mum

f.

expected

hand, they

of

but

11„ve y,ea/s aPa.ine aoiiar volume
of radiation instruments manufac-

.,

true that atomic

cannot

main

new

rapid

plied nearly five times

You Wl11 note ™at the flgures

.

t

forever to remain abnormally high
relative to earnings. On the other

that

m-

dealing

eted

um

cha5*
It

until

very

dioistooe

19ci4

glven>
...

are

ranid

verv

Thus AEq figures

sup-

?ommittee m iVlay, lim>

i

we

figures,

smaller

showing

snowing

atomic industry at the end of 1955

For

figures

struments tigures, we are aeaiing

'th dnl1ar
glven,.on tne aoiiar size
gi

various

budg¬

passing from uranium to radio-

In Table I, minimum fig-

°
of

^ I?

t

growth.

believe that the portion of the $2
billion annual expenditure

us

0f

too

are

The eommonlv used ratio of
ine commoniy usea iauu
>l

high
llign.

be

situation

the

capital will

new

doubtedly

.

enthusiasm has bid prices up

s

of

sources

products and that

i/1(in

phshed for V20

^ad multiplied 8000%

*ng

Appraisal of the Growing

cated

be
preserved for two
without freezing by irradia-

tion with fission

-xU-

,,,,,,

the

1948.)

An

ties business

called

to

Johnson,

production should double within
^ months. (He also revealed that

al-

resource

contribute

round.

branch

oiners
others

fi-

$15

the

of

who

are

fissions

irradiated

AEC's Di¬
rector of Raw Materials, stated a
few months ago that the domestic
uranium industry was at the $106
million mark annually, and that
Jesse

which

uranium

can

years

?n

about

in

toes

h

Pers?ns,en^aS^vin,UQnnolJ?1 P1111""

record

a

shift in

a

also

growth consti¬
in

Those

materials

after

over

(fission products).
Chairman
Strauss has indicated that pota-

no

public benefit, as do those memof the public who, by their

million. This
tutes

Mr.

industry by 1956.

resources.

there has been

Uranium

bers

a

o v e r

of

the

draw

to

investment,
release
the
money
controlled by the primary sources
of new capital for use on the next

$1% million.
We

tion

available.

increase.

Says the question whether atomic stock prices are too high is
to be determined
by whether future earnings will sufficiently
increase in a short enough time to justify
purchase at present
a

figures
itself

in

that

inference

the "phenomenal" advance

in the public's view of the financial future of atomic
energy.

Foresees

best

inferences

our

left

Indeed, to ignore figures showing
increase

prices.

radioactive

may,

draw

must

we

By NEWTON I. STEERS, JR.*

terms

available.

data

therefore,
merely imply the release of addi¬
tional
data, rather than an in¬
crease
in activity.
Nevertheless,

President, Atomic Development Mutual Fund, Inc.

Mr. Steers discusses what he

the

of

figures

Larger

23

i

'

coming

years.

The

usual

Devonshire St

24

The Commercial and Financial Chronicle

(936)

announced

was

Sloan

S.

by

17)

Both men are

News About Banks
BRANCHES

OFFICERS, ETC.

Ardrey,

the

sharehold¬
Bank

National

Chase
of

Bank

special meetings to be held

of the

March

posed

28

to

mailed

were

Chase shareholders
of

issue

the

on

pro¬

17.

Feb.

on

indicated in

as

Feb.

the

to

Manhattan

"Chase

proposed

Bank"

merger

appeared in

our issues of Jan. 20,
273, and Feb. 17, page 810.

page

%

%

*

The appointment of Charles F.
French, Jr., as a Vice-President of

810,
will hold their meeting March 28
at 11 a.m. at 18 Pine Street, and

Manufacturers

Trust

New York

announced

the Manhattan shareholders' meet¬

dent

our

17,

page

place at 40 Wall
Street at 3 p.m.
Proxy forms and
a
circular outlining the plan of
ing

will

take

enclosed with the
letters.
Registered mail is being
used
for delivery to the
Chase
shareholders, in accordance with a
provision of the laws applicable
to national banks.
Approval by
merger

were

two-thirds

of

shares

the

each

of

bank, as well as approval by the
appropriate banking authorities, is
required to make the merger ef¬
fective.
The name of the merged
institution will become "The Chase
Manhattan Bank," and
erate

the

under

it will

New

York

consummation

French

the

He

retary in

April, 1950, and Assist¬
in September,
1952. He is in charge of the bank's
Central Credit Department and is
Vice-President

ant

Supervisor of its Executive Train¬
ing Program. Mr. French is Trea¬
surer of
the New York Chapter
a

member
of

ernors

of

if

Trust

National

IV4

shares.
000

shares

total

of

of

Chase

9,250,000

The holders of the 2,750,-

presently

outstanding

shares

of Manhattan will continue to hold

the

number

of

of

been

E.

and

Trust

New
York,
statement on

our

These discussions
of

and

one

are

on

one-eighth
Company

shares of Bankers Trust
for each
Bank.

of Public

share

Such

National

proposal, of course,
is subject to the approval of our
a

of

shares, but Boards of Directors, our share¬
with the par value increased from holders and the
regulatory author¬
$10 to $12.50 per share.
Chase ities.
All officers and personnel
same

holders

of

fractional

shares

may

of

both

buy or sell fractions so as to hold
full shares without transfer tax or

tained

service charges, they are being in¬

the

formed by the bank.

institutions

will

be

re-

pany."

In

the

circular
Feb.

National

Chase
to

the

on

will

organiza¬

continue

to

Trust

Colt
of

Board

also

stated

Directors

use

Com¬

that

of

the

Bankers

Company at its meeting
15

cents

declared
share

a

on

dividend of 65

a

Bankers

on

Trust

of Chase Manhattan, 15 are mem¬

Company stock, payable April

bers

to

of the

rectors

of

members

present Board

your

of

the

of

Bank and 10 are
present Board of

Directors of Manhattan.
hames

of

in

enclosed

the

these

Directors
Plan

the

Chairman

The

Merger.
Chairman of

of

will be¬

the

Board

of Chase Manhattan, and J. Stew¬
art Baker, now Chairman of the

stockholders

indicating

23,

annual
to

rate

of

record

from

$2.40

advices,

15

per

share

Feb.

Manhattan.

Percy J. Ebbott,

now

President of your Bank, and Gra¬
ham B. Blaine, now Vice-Chair¬
man

of

the

Board

of

ward

and

of
L.

Chase

Love,

David

Rockefeller

Senior

now

Manhattan.
who

Vice-Presidents

are

of

Chase, and Lawrence C. Marshall
who

is

now

President

of

Man¬

hattan,

will
become
Executive
Vice-Presidents of Chase Manhat¬
tan.
The

letters

holders

of

stockholders'
It

is

advising the stock¬

the

two

banks

meetings

expected

that

of

the

say:

the

National

This

has

"When

of

the

Bank

and

proposed merger
Trust

other

E.

Public

National

Company,

director

and

an

Bank

ment

group.
Henry L.
the firm of Moses &
is

now

a

director

of

The

Board of Directors of the
stitution."

stitution.

the

Among

combined

these

are

Board of Directors of The

and
in¬

Bank, the existing Edge Act sub¬
sidiary of the
Chase
National
Bank, the activities of which are

being expanded, and a reorganized
trust department advisory board,
the

responsibilities of which will
be to concentrate its attention on




Bank

and

advices

date

by

of

the

Fifth

The

founded

in

home

the

in

B. A.

be¬

and

of

Com¬

in¬

new

of

Bank

was

1875, having its first
Sherwood House, an

into

mansion.

the

John

Cornell

Mr.

been one of the founders. To

the

Cornell

mansion

two

added

later

were

adjacent

residences

it is these three brownstones

which

the

65 years.

has

occupied for

A. S. Frissell, Cashier at
of the bank's founding

time

the

bank

and its President for 31 years, was

largely responsible for the bank's
traditions of personal service and
its phenomenal growth.
In 1948
Fifth

the

Bank

Avenue

merged

with the Bank of New York, New
York's

oldest

in

founded

having been
by Alexander

bank,
1784

Hamilton.
The

building! will occupy
a
ground area of 27,500 square
feet, all of which was recently
new

the

to

Metropolitan Life In¬
Company by The Bank of
York.
Construction
plans

surance

New

call

for

stories

25

proximately
and

air

The

totalling

ap¬

square

feet

400,000

bank's

conditioned

throughout.
quarters will

special

the south corner, as

on

*

The Dime Savings Bank of Brook¬

First

dinner

sixth

annual

Tuesday

held

Y.

after¬

its

meeting

The architects for the

Bankers

Trust

by
"A

of

the

Window

bank

under
the

on

*

*

announced

Feb.

23, that
Vice-President of
on

A.

Yoars,

a

is

1944,

of

March

joining

the
16, to become

the head of its newly formed Real
Estate
and
Mortgage Loan De¬

The

partment.

bank's

action

in

consolidating this type of lending
in this department represents a

City.

in industry speciali¬
the part of National

on

The

become

a

Department

new

will

part of the Special In¬

dustries

Group, which was estab¬
January 1954, to com¬
prise its Petroleum, Public Util¬
ities, and Transportation Depart¬
lished

ments

in

which

were

formed at that

time. These departments are
staffed by specialists who devote

themselves exclusively to business
in their respective industries.
if

S.

l'ork

*

Sloan

Trust

of

on

S.

dent.
rowes,

They

Feb.

of

of

New

23,

the

three members of the

are

tional

Bank

Herbert

C.

Bur-

Carl M. Mueller and Ever¬

under

The

South

The

Bay

of

Street

Boston

the

Second

Trust

consolidated

Com¬

institu¬

dent

Bay
to

Bank

Feb.

if

if

Nassau

the

making

on
and

institutions.

tive

Bank

Board

of

Arthur

died

their

for

banks.

both

of

Trust Company

of

National

lin

Bank

staff

The

combined
resources

career

1927.

He

with
is

a

of

Bank

000.

The

Bank

of

Mineoia,

Bank

of

Glen

National Bank

1930, and that in

chanics

Metals

&

was

offices.

Trust

at

Roosevelt

ident, and later

*

*

Cleveland

as

of

Nassau

has

*

City

Bank

increased

result

a

St.

of

*

An

Bank

in

the

of

form

Bank

State

the

Em¬

it

Chairman

tion

benefits

of

New

the Advisory Board.

Vice-President

of

New

York

97.67%

of

authorized

Feb.

17.

the

offered

Subscrip¬
stock,

new

in

the

ratio

for

held,

approximately
expired on Feb.

Feb. 10, page
noted that the sale of
the additional stock at $32.50 per
our

729, it

issue of

was

share

of the

Mr. Ploch is

the

four

or

offered

January

announced by
the Board John C.

to

share

In

16.

William

become Chairman

on

were

one

each

Retirement

Bankers

of

rights

-which

in

newly

capital

National

Ohio

167,882

was

McHannan

welPas the continua¬
the

to

new

Central

Cleveland,

171,875

shares,

F. Ploch will
continue in charge of the Nassau
County Trust office at Mineoia.
will

of

the

to-shareholders

employees of Nassau County Trust

System.

of

amounted

officers and

of

divi¬

if

Subscriptions to the

ployee Profit Sharing Plan are to

the

Rouge,

stock

a

as

agreement
continua¬
tion of employment of all officers
and employees.
The benefits of

of

Baton

of

dend, has raised the bank's capi¬
tal to $1,000,000 effective Jan. 20.

consolidation

as

its

Tootle

$200,000 to the
of the Fidelity-

capital

La.,

further provides for the

Bank

the

to
*

of

$800,000

stock

Franklin National

1

*

addition

National

offices

operated

changed

Mo.,

Feb.

National Bank of St. Joseph.

Roslyn

County

These
be

dividend

if

if

Joseph,
as

National

and

Bank.

Company

$14,000,000

stock

a

if

National

First

of

a

The

of

capi¬

The Tootle-Lacy National Bank

has three

to

its

$2,000,000, the new capital hav¬
ing become effective Feb. 4.

$30,-

are

Nassau

Field.

its Pres¬

as

Honorary Vice-

as

National

The

branches of the Franklin National

York

Bankers Asso¬

President.

offices
Mineoia, Sea Cliff and

continue

Me¬
Bank

of the organizers

one

ciation and had served

ex¬

1913 he
the

National

of the New Jersey

Trust Company.

The

Company

located

tion

of

Na¬

from

It is further stated

New York.

that he

The consolidated bank will have

the

York

Vice-President

in

was

of

Cove
&

Sec¬

Chase

New

to

will

First

with

News"
as

Pond

the

was

$360,000,-

resources

solidations

will

Mr.

of

1926

over

institution

.

of

a

of

1946. The "News"

tal to $16,000,000 from

have

18

"Evening
in 1910

that

states

tional

about May 16,

or

according to

bank

Vice-President

It
is planned to make the consolida¬
on

Plain-

correspondent

Newark

also

Frank¬
in

stock

the

10, at the age of 84

Pond,

of the Board in

ap¬

County

shares

of

retary and Treasurer, and became
President in 1923, and Chairman

will receive three

four-tenths

and

Mr.

joined the

the shareholders
If approved, the

shareholders of Nassau

Feb.

on

the

proval.
The consolidation is also
subject to the signing of a formal
agreement of consolidation, ^he
approval of the
Office of the
Comptroller of the Currency, and
approval of

Directors

Plainfield

of

Board

of

years.

T.

Trust
Company have voted to submit
the proposal for consolidation to

the

if

if

field Trust Co. of Plainfield, N. J.,

17 by

Feb-

The

shareholders

Consumer Credit De¬
if

Directors of Nassau County

their

the

the

Harry H. Pond, Chairman of the

of their respec¬

Roth, Presidents

Assis¬

Mr. Nickerson, in

Company,
N. Y., and

National

Ploch

F.

was

partment.

Franklin SquareHbong Island, was
William

Neuendorf

appointed

were

staff of the

Trust

jointly announced

C.

announcement, said
continuing expansion of
department had made it nec¬
essary to increase the size of the

if

Long Island,

Franklin

Bank

the

consolidation of the

County

Mineoia,

Herbert

Managers.

that

$394,483.
A proposed

First National

The

Greene

E.

capital as of that date is reported
as
$150,000; surplus as $244,483,
and combined capital and surplus
of

of

Jersey City, has announced four

tant

Its

1.

if

appointed Manager of the Depart¬
ment, and Anthony S. Pizzano,
Joseph N. Granello, and Russell

Mo¬

Center

of

effect

take

*

appointments in the Con¬
sumer
Credit Department of the

converted into the

was

South
riches

$370,000,000.

new

of Center Moriches, Suffolk Coun¬

ty, N. Y.,

of

Kingsbury S. Nickerson, Presi¬

bank.

Bankers

in

of

Street

*

National Bank

company's Board

his

State

both

title

State

resources

Trust Committee and Chairman of

Trust

and

the

—

pany.

if

He

began

the

Company

Bank

.

if

if

ett Orr, Jr. Each of them had been

rowes

m

of

Assistant Vice-President. Mr. Bur-

the

a

Trust

Vice-President;
Carmine Anzalone, Secretary;
George W. Stewart, Treasurer.

Company, have

Directors, it

the

of

Highland

tion, it is announced, will have
capital funds of $33,000,000, total
deposits of $330,000,000, and total

be made available to

President

Company,

announced

election

*

Colt,

in

Ernest Taylor, Fred W.
Clarence Foulkes, Paul
Dodge, Martin Conneely, Edward
Wanamaker, Warren Teller and
Frank P'oster. Newly elected offi¬
cers
for
the
coming year are:
Charles
Stephenson,
President;

further step

zation

capital

Bank

*

Smith,

been elected to the position of Ex¬
ecutive
Vice-President

by

National

if

•

The consolidation is announced,
as of Feb. 21, of the Second
Na¬

1955.

*

The National City Bank of New
lTork

if

the

20

having been enlarged from $100,following the declaration of a

Jackson II,

tion effective

Avenue."

staff to the position of Vice-Presi¬

Tompkins and Francis

of

Jan.

Nassau County Trust Company.

title

Rockvilie

stock dividend of $100,000.

change for each share of stock of

the

of

000

Brooklyn. Fifty-seven men
and women, including twenty pen¬
sioned
employees who have 25
years
or
more
of service with
"The Dime" comprise the mem¬
bership. The following were ac¬
cepted as new members at this
meeting: Augusta Boettger, Eldred H. Daggett, Howard B. Lee,
Karl A. Stad, Leo B. Stein, Sarah
ada,

building are Voorhees, Walk¬
er, Smith & Smith.
A brief his¬
tory of the Fifth Avenue Bank has
new

issued

page

Falls, New York, became $200,000,

Feb. 15, at the Hotel Gran¬

noon,

Bank

*

On

44th

and

1890, the Bank moved
Avenue

National

Century Club" of

the northeast

on

had

Bankers

further

18

/

Bankers Trust

Avenue

if

if

N.

30,

Centre with the Franklin National

The "Quarter

lyn,

Dec.

Bank.

name

Baer, both Senior Vice-Presidents
of

In
the

Cornell

B.

corner

Fifth Avenue

of

Street.
across

Fifth

28.

Feb.

on

Petro¬

the

of

Public

Trust

Feb.

stated:

the southeast

on

Street

is also expected to join the

Under

the

Chase

its temporary quarters at 513
43rd

in

giving effect to the pending con¬

of

Moses

to

special' boards

Avenue

Avenue

Mueller

ty

Group.

as

President of the merged bank, and
a
member of its senior manage¬

pany,

of

Fifth

Mr.

of

issue

our

Bank

become a
Executive Vice-

National

committees

encompassing
the
present site.
The bank's
office will open in

Streets,

bank's

with

the

County

reference was made to the
consolidation of the Nassau Coun¬

tion in 1934 and will be associated

leum

and

of

2769,

000,000 and those of Franklin Na¬
tional Bank are $330,000,000, after

will

Manhattan boards will be invited
on

of Fifth Avenue between 44th and

45th

In

to

came

York

Clinton L. Miller,

west side

the

on

Orr

following gradua¬

since

effective, it is expected that
Chester Gersten, President of

Trust

front

Mr.

Trust

ciety

name

Company,

members of the present Chase and
serve

block

Group in the Banking

County Trust Company

Singer, who

the

tire

to

bank's

the

New

Chairman

Clearing House
Association, in which capacity he
served for a period of 11 years.

The Equitable Life Assurance So¬

comes

The

Bank of

new

head

of

first

Nassau

H.

Trust

institutions, under the
Bankers

the

will

the

was

director of the Federal

a

Bank

Reserve

as¬

to

led

Company:
our

present

of

managements

following joint announcement
by S. Sloan Colt, President of
Bankers Trust Company, and E.
Chester Gersten, President of The

Ed¬

George Champion

to

institutions.

Manhattan, Public

will become Vice-Chairmen of the

Board

both

his

been

by the

18,

said:

various inquiries have been

pany,

photograph and

a

of

building

at present.

the

the

Chase

model
York

be con¬
structed and owned by the Metro¬
politan Life Insurance Company.
The building will occupy the en¬

ers Trust Company and The Pub¬
lic National Bank and Trust Com¬

mittee

of

display will be
scale
New

be located

"Since the public announcement
of the proposed merger of Bank¬

directed

President

prints of Fifth Avenue and
York, along with other me¬
morabilia of the period.
Also on
old

New

in

increase

an

Bankers Trust Co.

Board of Manhattan, will become
Chairman of the Executive Com¬
and

day, "in the old Fifth Avenue Bank
building at 44th Street and Fifth
Avenue.
This
week-long open
house will feature an exhibition of

March

$2.60 per share.
Later

appear

of

John J. McCloy, now
the Board of your Bank,
come

Di¬

He

Petroleum

house during

open

21-25, with the
Washington's Birth¬

of

sold

Mr.

Feb.

combined

Bankers

name

Trust

17, it is stated—

Of the 25 persons who will con¬
stitute the first Board of Directors

in the

tion, which

Bank

stockholders

exception

and

discussing the
two insti¬

merging

basis

the

both

have

"We

tutions.

a

Bank

the following
15:

ing shares of Chase will

and

Gersten, President of the

Public

Feb.

Company,

1946.

Feb.

apartment hotel

if

if.

Sloqn Colt, President of the

merits

into

Gov¬

Institute

an

of

corner

S.

Bankers

tive each of the 7,400,000 outstand¬
verted

of

Board

American

Banking.

Company,

Manhattan,

the

of
the

and

Department
in

continue

Feb. 18 that the bank

on

week

the

of Robert Morris Associates and is

made

con¬

Manufacturers
1939, after

advanced to Assistant Sec¬

was

merger

be

Feb.

on

September,

merged

the capital stock of the
bank will aggregate 12,000,000 shares of $12.50 par value.
Upon the merger becoming effec¬

of

graduating from Puke University.

Chester

of

joined

in

Trust

State

of the Manhattan Company.
the

was

Company

by Horace C. Flanigan, Presi¬
of the trust company.
Mr.

op¬

charter issued in 1799 to the Bank

With

21

nounced

would hold

bank.

References

of the two institu¬

merger

tions

vote

merged

Manhattan

the

Company, both of New York City,
on

the combined trust business of the

York, an¬

Wall Street, New

48

at

the

formerly

will

Bankers

Simmonds, Jr., Pres¬
ident of The Bank of New York,
C.

Albert

Letters notifying the

State Bankers Association. He was

Administration

Department.

*

if

if

CAPITALIZATIONS

of

management

of Bankers Trust Company.

group

Bankers

and

REVISED

member of the staff of Personnel

Alex H. signment. Mr. Mueller joined the
Executive Vice-President, staff of Bankers Trust Co. in

constitute the senior

NEW

ers

yesterday (Feb.
Colt, President.
directors, and to¬

gether with Mr. Colt, and

CONSOLIDATIONS

NEW

and

Thursday, February 24, 1955

...

*

would

increase

stock by $2,750,000,
.

the

capital

surplus by $2,750,000 and undivided profits by
$85,937.
McDonald & Company,

Volume

181

5406

Number

.

vT/ie Commercial and Financial Chronicle

.

Union Commerce Building, Cleve¬

land,

heads

dealers

a

who

the

re¬

maining unsubscribed stock to in¬

Wallace

vestors.

America
*

A

*

tal

$1,000,000)

National

with the Republic

Bank

Dallas

of

(capital
$26,040,000)
under
the
charter
and title of the Republic National
became

warns,

*

City Bank of Dallas, Texas (capi¬

effective

the

than the rate of

Moir, President of the
Mortgage Bankers Association of
America declared before members
of the

Chicago Mortgage Bankers
Association

meeting in

con¬

Chicago

solidated bank is reported as hav¬

Jan.

ing a capital of $27,000,000,in
2,250,000 shares of common stock,

on

despite

$12

of

not

less

than

$3,000,000.

20/ That

t h

currently

share;
surplus of
and individed profits

timistic

per

$33,000,000

at

their annual

date of the consolidation the

par

family formations.

Wallace

At the effective

business Dec. 11.

close

home construction is proceeding faster

new

of

at

e

op¬

pre¬

dictions

for

a

continuation

Tne

in

proposed consolidation of the two
banks was noted in these columns

volume

By ARTHUR B. WALLACE-

activity. As for the latter, I think
I sense a growing concern on the
part of the Federal Reserve for
the
rapidly mounting mortgage
debt. While the highest officials
concerned with housing in Wash¬
ington* have disclaimed any
thought of a renewal of direct
controls

this field, the rate

in

at

which mortgage debt has mounted

has, I believe, become

anxiety
the

those

for

a

of

source

charged with
of
our
fiscal

management

affairs."

1847,

page

Nov.

and

25,

page 2161.
..

*

Under

*

date

*

of

starts

Jan.

21

Colorado

made

effective

Wallace

in its capital from

$20,000.
*

Directors

*

of

*

the

Bank and Trust

annual

First

Western

dividends

basis-of

quarterly payment of 40 cents a
share, and voted to increase the
bank's

capital $12,000,000 by the
sale of 300,000 additional shares
of capital stock. The initial quar¬

terly dividend of 40 cents

share

a

was
declared payable March 25
to shareholders of record Feb. 28.

The number of shares

doubled

was

payment

last

of

outstanding
30 by the
stock

divi¬

dend,

and

the

dend

basis

of

pares

with the equivalent of $1.15

share

a

paid

300,000

annual

new

$1.60

divi¬

share

com¬

a

during

additional

1954.

shares

The
to

are

be offered at $40 a share pro rata
to the bank's shareholders of rec¬
Feb.

ord

28.

1,800,000

The

shares

capital
$45,000,000.
T.

P.

bank's

Coats,

to

the

them

of

the

has

now

Chairman

Board

letter

bank

outstanding, and
and
surplus of

total

a

of

of

Directors,

the

in

boards

capital,

to

the

cover

bank's recent expansion by ac¬
quisitions and additionally would
"contribute, materially to further
progress and

expansion." ■
First Western now has applica¬

.

tions

pending,

proved,

to

offices.

It

already

or

open

nine

ap¬

additional

already has 54 offices

in 39 California communities.

Coats said

an

Mr.

the sale of the 300,000
shares would require

additional

amendment

to

New

York

dent

possibly

t h

b

e

k's

a n

to

go

Stock

James

P.

in

the

Exchange,

much,

very

or

even

volume,

appointment

than

starts

Mahony
of

charge

as

1,800,000 to 2,100,000.
is

subiect

shareholders

This change

of the additional
to

getting larger? and
modernization

houses

expansion

are

and

works

is

The school prob¬
lem is particularly acute and the
shortage of classrooms all over the
up.

is

country

becoming

serious

most

of

one

problems

the

facing

builders today."
But

whatever

pattern

J.

con¬

struction trend should follow, Mr.
Moir

said, building is likely to be
in 1955, as it was in 1954, "the
fair-haired
boy
of
the
year's
economic expansion."
But

builders, he

added, should

not

forget that the "softest period

for

building—except for highway

construction

has

—

passed."

now

is, he asserted, "that
agriculture or our
have ever been subsi¬

group, even

veterans,
dized

heavily

more

than

have

builders through the credit which
the

has

government

through its

extended

mortgage insurance."

the

and

there

State

is

"In

the road—that

bank's

years

stockholders

has

been

called for Feb. 28 for the
purpose

the proposed amend¬
Transamerica Corporation,

ment.

holder of

on

a

majority of the bank's

stock, has offered to purchase for
investment
scribed

all

of

shares at the

price of $40

a

the

unsub¬

subscription

share.

(Special to The Financial Chronicle)

PASADENA, Calif.—Millard
with

has

Standard

become

of

now

D.

associated

Investment Co.

of

California, 721 East Union Street.

P.

James

Lawrence J. Cassidy

Mahony

search, effective March 1. He suc¬
ceeds George F. Muller who has
resigned to become a partner in
Carlisle & Jacquelin, a member
firm

the

of

far

as

to

come

as

some

mortgages

the

full

government-

are

supply, and

money

the

rate

and

terms for the
be

made

use
of money, will
by the Federal Reserve

54,
started
his
career
with
the
Department of
Member Firms of the Exchange
countant,

he

was

his

Public

just

'ease.'

Calif.

Thelma A. Parker has joined
staff of H. L. Jamieson &

—

the




Federal

be under the

to

with business

Co., Inc.,

Russ Building.

will

The

avoid

appointed

22,633,000

75,500,000

98,133,000

19.62

22,800,000

34,892,000

25.85

25,750,000

30,396,000

6.08

28,165,000

30,9.93,000

59,158,000

23.48

7,229,000

__

Trust

11,125,000

18,354,000

73.02

City

t57,734,000

60,224,000

117,958,000

11.80

Trust

6,333,000

14,550,000

20,883,000

34.80

National-

3,744,000

7,491,000

11,235,000

12.90

89.86

__

___

1,586,000

7,400,000

8,986,000

$249,267,000

in

first

to

to the

the

$448,731,400

$698,198,400

late

book value at

1947.

in

the

start

price at the
comparison is arrived at:

of the five-year period,

date; and

same

-Ratio of--

to Book

—Ratio ofTotal Gain
to Book

Price

Value

Price

12/31/49

12/31/49

25%

33%

Trust-

37

49

& Co.—

28

41

12/31/49

29'/*

Manhattan.

of

New

Chase

National—..

First

National-

J.

38

National

39

42

New

36

Public

National

United

States

28

Bank-

33

25

-

32

26

Guaranty Trust.
Hanover

Manufacturers

33

28

L.

49

24
„

Irving Trust

39

._

York-.

36%

26

of

Bank

responsibility of analyzing in¬
ternal systems and procedures in
order to 'mprove the exchange's
over-all iteration. He will report
directly to Mr. Funston. Mr. Ma¬
hony lives with his wife and three
children in Garden City, L. I.
Mr. Funston also announced the

appointment of Lawrence J. Cas¬
sidy as Vice-President and Secre¬
tary of the Stock Clearing Cor¬
poration, an affiliate of the
change.
Mr.
Cassidy
joined
the

ex¬

He

was

♦On pro forma

It will

be

P.

ex¬

1920 as a junior clerk.
made manager of Stock

Cassidy, 57, lives in the Bronx

with his wife.

Morgan

City

York

__

_

41

Bank— 30
30

45

29

35

28

—

_

39

28

Trust—

Trust—

Average

36

basis giving effect to the Chemical-Corn Exchange merger.

apparent that in

where the bank's dividend

cases

pay-out ratio is large, e.g., First National Bank, Guaranty Trust,

dividends constitute by far the greater

pro¬

portion of the total gain to the stockholder, with the increase in
the
are

equity making a minor contribution. On the other hand, there
many investors who, because of their tax positions, are more
in growth

interested

of equity than they

and for whom stocks such
Trust

facturers

are

would

For whatever influence
up extensive branch

these latter banks all have built

These

systems.

in dividend income,

National City, Manhattan and Manu¬
have more
appeal, because the equity
as

growth contributes so much to total gain.

three

banks

fared

also

well

in

the

tabulation

giving the ratios, being above the averages in all cases.
Recent New York

Recent

City Bank Developments

items of note in connection with the New

news

York

City banks have been:
dividend

stock

A

100%

of

increase in the cash from

on

Bank

York, with

of New

an

the equivalent of $9 to $10 on the new

capitalization.

Joins Leo Schoenbrun
/Special to The Financial Chronicle)

Announcement that the Chase-Manhattan merger is expected
to become effective

.

Cal.—Coleman
C.
Gershuny is now
with Leo
Schoenbrun, 1385 Westwood Bou¬
LOS ANGELES,

this merger is IV4

April 1 if the Superintendent of Banks takes

It will be recalled that the announced basis for

adverse action.

no

shares of the stock of the merged banks for each
Manhattan stock.

share of Chase; share-for-share in the case of
Announcement

levard.

that

Bankers

and

Public

are

working

on

a

the holders of Public stock to receive lVs shares of stock
in the merged institutions per share of Public; Bankers holders
one-for-one. As Bankers Trust also announced an increase in its
cash dividend rate from $2.40 to $2.60, the Public stockholder on
merger,

Two With Morton Seidel
(Special to The Financial

Chronicle)

ANGELES, Cal.—John G.
Morris and Murray B. Zuckerman
are now with Morton Seidel & Co.,
LOS

completion of the merger would receive an annual equivalent of
$2.92, compared with the $2.25 (which includes a 25-cent
that the bank has paid for several years.

extra)

_____

458 South

Spring Street.

Joins A. G. Becker
BREAKDOWN OF—

(Special to The Financial Chronicle)

Montagne-Sherwood

SAN
H.

FRANCISCO, Calif.—Geo.

is now

Pfau, Jr.,

Becker & Co. Incorporated, mem¬

of

bers

the

New

Govt. Bond Portfolios

with A. G.

York

and

San

Sources of Gross Income
16 N.Y.C. Bank Stocks

Francisco Stock Exchanges.
Circular

Joins Bramman-Schmidt

greatest

ST.

LOUIS,

of

forceful

Boatmen's

Mo. —William A.
to the staff

Gerst has been added

Bramman-Schmidt-Busch, Inc.,

bers

of

change.

Bank

the

Building,

Midwest

With J. M. Malmberg
(Special to The Financial Chronicle)

(Special to The Financial Chronicle)

expansion, but, with

in

_

to Market

34

United States Trust,

it has had

change in

Reserve

markets,
inventory buying and in building

Total Gain

to Market

12/31/49
Bank

and

valid basis for

a

Total Gain Total Gain

recent

moderation

stock

1954.

market

As¬

position he will have

new

the good judgment the agency has
used in the past, may dictate a

policy of

131.80

13.68

the

interference

controls of the securities

39,564,000

_

Ac¬

Examiner

Chief

sistant
In

Certified

A

1930.

With

more

37,500,000

4,646,000

—

_

_

Exchange.

We may
be, at this moment, on the door¬
(Special to The Financial Chronicle)
step of another significant change
PALO ALTO, Calif—James S.
in our monetary affairs which, in
Jenson has become connected with
recent years, have gone from easy
La
Montagne-Sherwood & Co.,
money to hard money, from that
418 Waverley Street.
to 'active ease' to the

27.58

12,092,000

Trust

Mahony,

Mr,

30-year

concerned.
"Most of the decisions regarding

pressure

(Special to The Financial
Chronicle)

FRANCISCO,

loan. Thirty
50% and

15.01

2,758,400

Value

was

no-down-payment

backed

Board

H. L. Jamieson Adds
SAN

have

we

100%,
loan

mortgage
the ratio

a

ago

the

governs

Board and the Treasury.

With Standard Inv. Co.

Jameson

size

is, in the loan-

ratio which

64,451,000

1,229,400

As, of course, the size of these banks influences the total dollar
gain, ratios have been worked out relating each stock's total gain,

direc¬

have reached the end

we

to-value

either

35,467,000

1,529,000

subscriptions

he said.

up,

108.33

pro forma basis giving effect to Chemical-Corn Exchange merger.
tExcludes
approximately $131,000,000 of new money contributed as

aspect of mortgage fi¬

one

nancing,

in

trend

a

tion, it will be

approval
the

"reasonably plentiful." In¬

12.78

8,666,000
101,202,000

♦On

Mr.

in 1954 but still

31,941,000

6,440,000

28,984,000

Exchange

Total

plentiful

was

Share

$16.26

16,919,000

United States Trust

Clearing Corp. in 1947 and Assis¬
tant Secretary in January,
1954.

it

Per

Gain

65,120,000

_

Bank

York

Public

Turning to the supply of mort¬
gage money by which the building
industry is financed, Mr. Moir
said, that it would not be as
as

Total

$49,621,000

2,226,000

Morgan & Co.—

New

And the fact
no

P.

Cash
Dividends

$30,423,000

15,022,000

National

National

in

the

even

2,064,000

Corn

then

o.ther public

many

the way

on

an

36,082,000

York

Manufacturers

ana

"Spending for highways, schools

of

voting

Now

Irving Trust

are

expenditures

give

would

up

the five years ended Dec. 31,

uses

in Equity
$19,198,000

__

National—

Hanover

rising rapidly.

Superintendent of Banks and the
Federal Deposit Insurance
Corpo¬
ration.
A special
meeting of the

of

of

Chase

♦Chemical

terest rates will remain low but if

of

Bank

Re-

main¬

will be

of
incorporation to in¬
the authorized shares from

_

Bank of Manhattan

Vice-Presi¬

Methods

Trust

Guaranty

articles

stock

following tabulation

Bankers

proportionately
because

built

Increase

of

the other hand, may
larger

on

be

been

December 31, 1949-December 31, 1954

tain/the record set in 1954 which
was
our
second biggest building
year," Mr. Moir stated. "The de¬
mand
is just not
there. Dollar
well

have

has

but the country cannot hope to in¬
crease

that

reserves

outstanding stock totals at the end

might
1,300,000

around

sizable

a

Gain to Stockholder

"

money.

is

the large

favorable aspect to our material.

The

year

crease

and the issuance

allocated
more

First

supply of mortgage

there

stocks of

in

"Housing starts next

a

undisclosed equity in the
banking institutions, customarily
in the form of reserves. But the
following discussion utilizes only
published equity and gives no effect to items other than capital,
surplus, and undivided profits. Naturally, to include even un¬
the

Empire Trust

shareholders

telling
action, said

that

aware

of

cases

Mahony & Gassidy

than the rate of

a

the sale of additional stock would

provide

course

Keith Funston, President of the
announced

family formations
plus housing replacements — and

the improvement in a
bank stock is to calculate his gain on
the basis of the growth in the
equity, or book value, plus the cash
dividends paid in the period under consideration. Investors are of
shareholder's position in

of 1954:

further, or even main¬
tain the pace, because it is faster

Nov.

100%

a

this

total much

Company of San

share, declared-the first

a

NYSE Appoints

of

increase

Bank Stocks

—

interesting method of measuring

probably faster than the increase

Francisco, at a meeting on Feb.
16, placed the banks' capital stock
an

Moir

in¬

an

$380,000
to $400,000, this having been ac¬
complished by a stock dividend of

$1.60

of

1954,
the country
cannot hope to

the

Greeley National Bank of Greeley,

on

the

1,200,000

....

crease

of

1955

This Week
Ah

1954, and gives, first the dollar increase in equity for 16 leading
New York City bank stocks, then the cash dividends disbursed in
the period, to arrive at a total gain. This
gain has been reduced
to a per share basis,
using the

high building

Nov.

4

25

Bank and Insurance Stocks

Moir, President of Mortgage Bankers Association of

the National

consolidation of

(937)

Building Volume Seen Reaching Peak

security

group of
will
offer

\

SAN DIEGO,

Snedicor
with

J.

has

W.

Calif.—Howard T.
become

Malmberg

associated

Ex¬

Broadway. He
Fairman & Co.

was

formerly with

request

Laird, Bissell & Meeds
Members New York

Members
120

Bell

(L.

Stock Exchange

American Stock Exchange

BROADWAY. NEW

Telephone:

& Co., 625

mem¬

Stock

on

A.

YORK

5, N. Y.

BArclay 7-3500

Teletype—NY

Gibbs, Manager

1-1248-49
Trading Dept.)

Specialists in Bank Stocks

26

The Commercial and Financial Chronicle

(938)

American

Public

Charles

By OWEN ELY

Oklahoma Gas

Electric

&

sup¬

communi¬

plies electricity to 246

ties, plus rural, areas, with a total
population estimated at about one
million, in Oklahoma and west¬
ern
Arkansas (only about 8% of
total
revenues
being
obtained
from the latter state). Electricity
sold

also

is

communities

12

cities
City,

important

Oklahoma

include

served

to

REA co-ops.

10

and

the

of

Some

wholesale

at

Enid and Muskogee, in

Shawnee,
Oklahoma

Smith

Fort

and

and

olds

The

company

of

all

sold

it

engaged

was

distribution

gas

its

in

the

the

that

served

corporate

area

name

Oklahoma

The

notable

is

area

far the production of oil and natu¬
ral gas as

well

farm

The

agriculture.

as

Arkansas has good

served in

area

land, timber and some diver¬

sified industrial business.
The

residential

company's

contributes

business

rural

a

and
high

proportion of revenues — 43%—
while large light and power busi¬
ness
is
comparatively low with
17%. The oil industry accounts for
approximately
one-half
of
the
latter

and

revenues

diversified

in

is

itself

well

distributed

food and food processing,

natural

of

been

Although

gas.

increase

an

the

of

base

1.30%
is

of

total

the

largest air
this type in the

facility of

world, employing 20,000 civilians,
4,500 military personnel, and em¬
bracing

than

more

million

8

feet of permanent build¬
ings, exceeding $121 million in
replacement value.
square

Franchise

extensions

in

the

company's area must be approved
by a direct vote of the people, and
the management is proud of the
fact

that

97%

over

favored

lias

the

of

the

United

position

applied for

were

lost

and

no

utility

property of the company
lias ever been acquired by a mu¬
nicipality.
The company has enjoyed rapid
growth, with revenues of $40 mil¬
lion
of

in

1954

125%

Gross
lion

with

the

an

postwar

increase
period.

plant account of $176

had

come

showing

in

increased

gained

a

eco¬

increase in

general

a

rapidly,

and

99c

in

1945.

President

Ken¬

nedy has estimated that earnings
in 1955 may reach $2.31 a share
after allowance for possible
common stock
financing this year
even

on

a

l-for-8

20%

preferred

construction

stock

return of 6%

a

in

Arkansas

the net original
$213,000 increase

on

cost rate base.

A

became

effective

in

December.

The

company's

operations

from

1902

and

cash

have

been

paid

on

stock

each

year

since

expenditures

approximated $120 million,
equal to 78% of the present plant.
A-bout $70 million will be
spent

1955-57,

it

date

dividends

the

common

The

1909.

by the public

sold by Standard Gas & Elec¬

tric

Company.

two-thirds

is

The

latter

some

Generating
127%

through

around

shaw

sale

capability
1945.




was

selling

on

Exchange
V2, the rapge in 1954-5

33

dend rate has increased each
year
in the postwar period,
having re¬

cently been
yield based

4.8%,

raised
on

about

or

to

the

$1.60.

latter

The

rate

served

board

since

third term

since

in¬

technical, document. Quite frank¬
ly,

believe

I

that

salesman

any

securities

in

dealer

or

who

tries

the origination

in

of sales letters,

other type of advertising
covered by this statement of pol¬
icy (which also includes any com¬
munication whether by radio, or

on

This

1945.

as

is

any

by television) is licked before he

He

starts.

as

employee.

an

or

his

Vice-Chairman.

joined Reynolds & Co. in 1931

document

This

is

technical,

so

the demands made upon the

Committee

charimanships

the

were

among
nounced

governors

follows:

as

Mathew

J.

John

Hall,

Dean

Albert

an¬

G.

Redpath,
James
R.

outside

supervision;
floor transactions; Charles
W.
Halden, finance;
A.
Philip
Megna,
admissions;
Joseph
Gimma,
arbitration;
Harold
A.
Rousselot,
public
relations;
George C. Donelon, realty; and
Dyer,

Charles

J.

Kershaw,

business

The

average.

price-earnings ratio based

last

on

would
age

be

14.5.

is

now

The general aver¬

about

15.7

based

on

latest interim figures for 135 elec¬
tric utilities.

G.

Becker Adds

has

been

added

A. G. Becker &
120

to

D.

New S. F. Exch. Members
SAN

sales¬

the

of

Co., Incorporated,

South La

bers

of

FRANCISCO,
E.

•

* m

|

Calif.

—

President

Kaehler,

of

Exchange,
announced the following elections
to membership in the Exchange,
effective at the opening of busi¬
ness on
Friday, Feb. 18, 1955:
Earl S.

&

Co.

Douglass, of A. G. Becker
Incorporated.

Donald I.

&

Forrest, of S. A. Judah

Co.
S.

Shiels

partner

Hoelscher,
general
Sherman Hoelscher &

of

Co.

Charles T. Jawetz, general part¬
of Daniel Reeves & Co.

ner

CHICAGO,
Vaughn

has

111.

—

Brinson
staff

Inc.,

has

of

been

added

McCarley

Commercial

&

to

the

Company,

National

Bank

Building.

.

.

R.

affiliated

Commerce

Building,

members

of

the Midwest Stock Exchange.

to Staff

(Special to The Financial Chronicle)

to. The

Cushner

is

the

Midwest

Chronicle)

(Special to The Financial Chronicle)

CHICAGO,
Warren

Link,

is

111.

now

Gorman,

—

Ralph

affiliated

Peck

&

R.

with

Co.,

208

South La Salle Street. Mr. Warren
was

previously with Blair & Co.
Incorporated and Ames, Emerich

&

Co.,

Inc.

—

with

Joseph

Coburn

D. E.

Middlebrook,

ties

business from

offices

Wilshire Boulevard.

at

Mutual Fund.

Trumbull

Street

He

was

the

ber

and

trying to get
I remem¬

and

30's

the

when

til

today we have

left-wing

become enam¬

Somehow I've made

ored with it.

living all these years, and I've

a

it

done

clients

taking

by

well

as

and that

of

care

could

I

as

my

do

it;

includes the greedy

even

the "something for nothing

ones,

boys," those too lazy to read and
the great majority who couldn't
understand a financial statement,
a
balance sheet, or a prospectus.
I don't need anyone to tell me
how to write

letter to my

a

of

"Statement

Policy"

there

realize

that

would

mislead

or

clients,
no.
I

those

are

who

in every
line of business,
but those who
would be so stupid as to continu¬
ously try to do so by using the
mails

the

in

the

in
I

people

business

investment

must be few

indeed,

about the most

or

else I

am

gullible individual
business today.

investment

don't have to write letters
funds

mutual

G.

HILLS,
Solof

is

clients

My

rely

to

anything

or

upon

my

to the

purpose

ment

of

the

shall

terially

deemed

misleading

by

ma¬

of

reason

implication, as contemplated
herein, if such sales literature (1)
an

includes

—

with

statement

a

That's

enough

sales

every

mutual

about

Life is

me.

with checking

letter

I

that

funds

to

write
that

see

statement that I make in all

every

faith is absolutely correct
might, or might not be in¬

it

terpreted, by the learned lawyers
and such
who
could
some
day
pick up some minor flaw in my
correspondence and
the head with it.
not

for

to

sit

in

office

my

stretch

a

trying
not

or

rap

for

have

hours

at

figure

111.

—

checked,

double

I

checked.

time worrying whether
my
letters are going to

with

what

should,

or

writing.

I

bureau,

some

double-talking govern¬

lawyer is

going to

should
am

not

tell

be

Co., 135 South La Salle Street.

Pont

Figueroa

formerly

officer

an

&

Street.

Co.,
He

of

In¬

Management Co.

A. C. Karr & Co.

and of
Bert

B.

added

has also been

Kopperl
the firm's

to

staff.

With First California

not going to write.

We

Come
now

are

believes
of

rules

and

have

and

by

use
a

the

ad¬

them

for

them.

can

a

so

up

a

every¬

will

better,
am

just

old-time security salesman that
around

since

associ¬
Com¬

647 South Spring Street. He
was formerly with Sutro &~Co. in
the industrial department.
pany,

Schirmer, Atherton Adds
(Special to The Financial Chronicle)

)

Chester- J.
Grant is with Schirmer, Atherton
BOSTON,

&

Mass.

—

Co., 50 Congress Street, mem¬

bers of the New York

Stock

Exchanges.

and Boston

r

FIF Adds to Staff
(Special

to

The

''DENVER,
Richards
FIF

is

Financial

Colo.
now

Chronicle)

*

Albert

E.

—

connected

^.with
Corporation,

Management

444 Sherman Street.

..

Three With J. W. Hicks
(Special to The Financial Chronicle)

DENVER,

Colo.

—

Floyd

L.

Kelly, Charles W. Marion, Jr. and
Ralph
come

W.

Jr.

Newton,

affiliated

with

J.

have
W.

be¬

Hick3

&

Co., Inc., Colorado Building.

(Special to The Financial Chronicle)

world

you

happier and wiser. Well, I
has been

now

California

First

Dolan With J. K. Mullen

set

almost

be able to make the world

an

is

Sampter

with

ated

Long Way

doing

J.

mund

' >

'

Calif. —Ed¬

ANGELES,

ap¬

living in
you

(Special to The Financial Chronicle)

LOS

in

put

let them. write

We've

thing,

&

du

I.

vestors Research

me

Let the Funds prepare the litera¬

book

C.

South

677

associated

become

has

Francis

was

a

re-

-

my

proved—then I'll

Nuveen

Perna

with

and

about

living to make and I can't

a

not

W.

Oliver

John

F.

out

word

to

every

paragraph I write

every

over

me

No thanks—this

haven't the time

I

me.

vertisements

(Special to The Financial Chronicle)

with

(Special to The Financial Chronicle)

made, in the

for

to bother

too short

ble-talk,

Fred

friends,

material fact necessary in order

ture, let them figure out the dou¬

With King Merritt

My

LOS ANGELES, Calif.—Vincent

untrue statement of a

an

material fact, or (2) omits to state

work.

Perna Joins F. I. du Pont

amended

be

will

that

take it from there.

attention

of interpreting this 'State¬
Policy,' a piece of sales

agency, or

Calif.

—

this formula because it is the only

you

your

of
call

we

literature

square

(Special to The Financial Chronicle)

is

Dutton.

following: (Quote) "For the

spend

Beverly Drive.

CHICAGO,

I

Page

statement

and

Daniel D. Weston & Co., 140 South

ATLANTA, Ga.

good for them. That means that
their goodwill and their
I am going to stick to

have

confidence.

Why Stick Your Chin Out?
On

checked,

previ¬

now

is

one

John

ment

Slocum

1928

in

politicians in this country hung
bureaucracy around our necks un¬

I

I will be pleased to

discuss this with you at your con¬

or

BEVERLY

and

venience.

that

6535

find

100

Incorporated,

Joins John Nuveen Co.

ANGELES, Calif.—David
Bright is conducting a securi¬

profits

else.

fund*ris

ously with King Merritt & Co.

Richard

public

something for nothing.

fol¬

as

Investor:

mutual

Bright Opens

LOS

My letters from
written

be

&

Beardsley is now connected with
King Merritt & Co., Inc.

(Special to The Financial Chronicle)

ap¬

prospectus
other literature pertaining to

whether

With Daniel D. Weston

With Link, Gorman, Peck

than

stocks

for

I

years, i

the

•

bought them without
thinking about anything but

sell

Dear Mr.

Stock

Exchange.

let¬

no

lows:

,

Co., 134 South La Salle Street,
of

Conn.

now

—

members

Financial

HARTFORD,

CHICAGO, 111.
Herman C.
Bohenstengel is now with Langill
&

will

on

now

is

With Coburn & Middlebr'k
(Special

Langill Adds

other

proved literature.

as

with

Chicago Mutual Investment
Co., 8151 Cottage Grove Avenue.

funds

mutual

for

good

Olderman, Asbeck

has joined the staff of
Olderman, Asbeck & Co., Union

Joseph

become

write

any

way

and

quick

light of the circumstances of its
use, not misleading."

Chicago Mutual lnv. Brennan

(Special to The Financial Chronicle)

use

or

to make

McCarley Staff

CLEVELAND, Ohio—Loretta A.

_

use

the funds
with this

of

I would

only

other form of
communication in soliciting orders

a

With

Exchanges.

/""ii

With

Salle Street, mem¬
New York and Mid¬

the

west Stock

ters

I would

literature

statement.

conform

advertisements.

or

reason

prepared

CHARLOTTE, N. C.—Forrest E.

staff

trying to

even

sales letters

in

not worth the

are

the San Francisco Stock

*

Mabie

of

effort

Enclosed

(Special to The Financial Chronicle)

(Special to The Financial Chronicle)

^CHICAGO, 111.—John

and dealer

1929

those

all

the

judgment. I sell them what I think

Joins
A.

man

conduct.

is

year's earnings is 15.4 and based
on
this year's estimated
earnings

of

System

the

on

lengthy,

the exception of
the governing

has, with

1952,

Ronald

having been 333/4-26V2. The divi¬

E.
since

Exchange

member

com¬

of the stock.

The stock is currenty
New York
Stock

estimated.

securities.

creased

Kershaw

J.

going to comment

merits or demerits of this

I

1940,Mr.Ken-

and Standard Power & Light
hold

the

A.bout one-third of construction is
financed
through internal
cash
and

An
Charles

funds.

mutual

to follow this treatise to the letter

since 1947, when some of the stock

and

have

curing

dent.

(Special to The Financial Chronicle)

30% common stock equity.
The
.present policy is to maintain the
equity ratio at around 30%. Postw a r

Ex¬

Presi¬

not

am

with

themselves that complies

basis.

The company's capital structure
at the end of 1954 was about 50%

debt,

Cormick,

connection

sales

to

be used in

now

can

committee;
securiteis;

share

earnings
were
$2.18 compared with $1.90 in 1953

Mc-

ever

1955, pertaining

31,

literature that

in

lot

a

remember

Jan.

mission
authorized
a
$2,200,000
adjustment, which would provide

although on a per share
basis the gain was only 119%.
1954

Ed¬

T.

change

rates

328%
In

by

seen

grabbed

For that

Net in¬

more

postwar increase of 193%,
and earnings for
common
stock
showed a phenomenal increase of
a

announce¬

reading and

Mann, board chairman, executive

mil¬

149%.

even

the

for

o

I have just finished

rereading the "Statement of Pol¬
icy" issued by the Securities and
Exchange Commission as amended

averaging
some¬
what less than 10%, which would
provide around $2,600,000 of reve¬
nue
annually. Effective July 10,
the Oklahoma Corporation Com¬

In

mously in favor of the company.
elections

The

States.

t

ment

cost

nomic generation of its energy.
In February 1954, the company

fact 65 communities voted unani¬
No

the

an

years.

company

basis, in recent

average

vote

on

in

therefore, continues in

company,

favorable

pany

This

held

evening,

ward

there

gas during the past few
such costs in the Southwest

parts

still

revenues.

iz ation

last

substantially less than in other

field

approximately

or-

meeting

fuel

machine

shops, glass plants, coal
operations, and manufactur¬
ing. The largest customer, Tinker
Air Force Base, accounts only for

the

an

was

is

balance

g;a n

Southwest, which permits
it to obtain ample supplies of low
cost fuels for generating purposes.
Nearly all of the fuel used in 1954

The

among

margin

n g

at

d's

o a r

and the

stock has been held

among

i

g o ver n

b

Rules

And Regulations Use Common Sense

Exchange
board

according

was

When You Are Hamstrung by

AmeriStock

can

company is located in the
of the large natural gas,
reserves of Oklahoma

center

By JOHN DUTTON

term

year

the

of

should

reserve

pumping,
refining and pipe line operations.

well

Vice-Chairman

as

program

power

a

electric

has not been changed.

one

a

oil and coal

properties.

gas

Kershaw, a Reyn¬
since 1940,

partner

17% in 1956, it is estimated.
The

are

well established in

so

provide
of

years,

Although the company is no long¬
er engaged in
any business other
than
the
providing of electric
service, the trade name "OG&E"
is

construction

rent

1927 when

until

J.

Co.

reelected to

was

Company

&

peak demand gained 21% last year
and is expected to increase 25%
during 1955-6. However, the cur¬

has

Van Buren in Arkansas.

Exchange

Re-elects C. J. Kershaw

Utility Securities

Oklahoma Gas & Electric

Thursday, February 24, 1955

...

1925.

I've

DENVER, Colo.—John F. Dolan
has become associated with J. K.
Mullen Investment

tional

Bank

Co., U. S. Na¬

Building.

Mr. Dolan

formerly with Bosworth, Sul¬
livan
&
Co. and. prior thereto

was

with

Kidder,

Peabody

& Co., in

Volume

181

Number 5406 V.-. The Commercial and Financial Chronicle

(939)

industrial

some

British Stock

Our

Reporter

Governments

on

Exchange Profits

capital

gains

ments,

Dr. Einzig, in calling attention to the upward trend
London Stock Exchange during recent

By JOHN X. CHIPPENDALE, JR.

well

as

time before the issue will be well placed.

more

cism

None¬

theless, it is evident that institutional investors

are going to be
passing of time because it will
better fill their investment needs when some of the current competition has been taken out of the picture. To be sure, there will

attracted

be

real

no

this issue with

to

burst

there is

some

at

of

buying in the longest Treasury

bonds

-

an

nents

trend
As to when the money market will be movyag away from its
defensive attitude is purely a matter of guesswork. However, the

of

Eng.

the

London

viewed

with

growing

Government

e

time

Short-term

from the

sectoF,

well

the competition it is getting from outside

as

fairly large number of switches in the longer end of the list benot

cause

been

few

a

sellers

of the marketable 3y4S and

owners

these

of

obligations, with the

halt

ing

bank

concern

being rein¬

the

over

interna¬

tional

cal

This has given a minor T>it of a fillup to
recently offered 3s, but it will still take some further spade
work to put this issue into the shape that will be necessary in
e

Paul

Dr.

_

to be

seems

no

desirable obligation

question but what the 3s due 1995
far

as

as

and, in time, there should be

long-term investors

are

are a very

concerned,

improved demand for this bond

an

from this

are

manent nature.

utives

stock

ment

long-term Treasury obligations have been taking
be¬
lieve this is a good time to register such losses;*&To be sure, there
will most likely be the usual tax selling later imthe year, as there
always has been. The reason given for the tax operations at this
time is that the opportunity is presented to put the funds released
from the selling to work in the refunding 3s. The opinion is held
taking these .tax losses that, if the mar¬
should go lower, more switching will
take place. In the course of not too long a period of time, it is
believed the 3s which are being used as a replacement for the tax
loss issues will show considerable price betterment from the levels
by

of those who

some

are

ket for long-term Treasuries

at which

they

were

originally purchased.

Long ZViS and 2'%s in Demand
Even though the 3% due Feb.

15, 1995 appears to be the lead¬

ing issue in the long-term Government market, there are indica¬
tions that t'~e 3y4s and the 2y2s bonds are finding support on amore

distant 2y2s and the 3y4s has come from what is com¬

both

took

have

give

longer-terms

at levels

for their purposes.
too

been

not

To

be

sure,

large, but they have

these commitments

been sizable enough to

cushion to the market.

a

It

investment

for

around

until

the

money

hardening

process

has

(Special to The Financial Chronicle)

Calif.—Joseph

u

is

Lorentz

Richard

with

now

Harrison, 2200 Sixteenth Street.

ST.

S.
Thies has become connected with
LOUIS,

Slayton

J. Earth Adds
:.

eventh

Mo. —Warren

Company,

Inc.,

408

unofficial

the
dend

since

connect-

Barth & Co., 210 West

A.

C.

Champlain Co.

Champlain & Co., Inc., is

ngaging in

King Merritt Adds

offices at

lew

York

3

a

82

office

is

Chopik
firm.
A

Albert

City.

principal

ranch

Beaver Street,

of

the

maintained at 79

Such

divi¬

on

speculative

excessive.

not

were

the; beginning

And

this year
most speculators have closed their
speculative positions.
The. tech¬
nical position is sound, and there
is no danger of a stock exchange
slump of
cause

In

of

magnitude that would
economic repercus¬

a

grave

sions.

;

v

■

'■

v

..

spite of this, the government
the

stock

persistent rise

exchange.
been

growing

of

part

the

missed

no

crease

that

inves¬

and

to

criticism

of

a

on

Socialists. They
opportunity for

point
in

the

basis

of

Chancellor of the

the

accuse

but for which

owners

had

As

today

however,

a

his view

that

boards

Ex¬

stock

ex¬

should

continue
in

their

to

reaffirmed
of

directors

exercise

dividend

self-

policies.

of dividends, and he al¬
qualifies his appeals against

dividend

increases

by saying that
the individual cir¬

cerned whether

depends

of

their
There

of

the
or

dividend
can

dividend
on

on

be

firms

not

an

con¬

increase

is

justified.

little

doubt

limitations

and

tain's

of

stock

in

exchange

recent

has

months,

been

certain

a

is

future
largely
ability of main¬
taining and expanding luxury in¬
dustries, which cannot have se¬

domestic

booms

For

un¬

degree

of

that

stimulus

the

industries
boom

one

regime of the Labor Government;
in particular Dr. Dalton's cheap

policy from 1945 to 1947
many
hundreds of millions

money

of

pounds of untaxed profits into
pockets

investors.

of

speculators

At the

perhaps

ing fortunes has

the

to

stops

that

attacks

capital gains through the ap¬
of
investments
will

no

be

too

to

much

see

to

this,

expect

let

alone

(Special to The Financial
Chronicle)

with

Dietenhofer

short

and

Heartfield,

670 Southwest Broad Street.

'

E. Lowitz Admits
George

Stoff

March

on

3

will

partner in E. Lowitz &

a

Co., 29 Broadway, New York City,
members

of the

Exchange.
Kessler

New

York

Feb.

On

will

28

Stock

Earl

withdraw

M.

from

the

firm.

Dreyfus
Dreyfus

to Admit

&

Co., 50 Broadway,
New York City, members of the
New

York

March

3

Nulty

Stock

will

and

Exchange,

admit

on

Willian

E.

McCabe

Alexander

to

partnership.

New York Slock

Exchange
Weekly Firm Changes

The New York Stock
Exchange

has announced the following firm
changes: Richard V. Nuttall will
withdraw from Singer, Deane &
Scribner

Feb.

William

&

28.

P.

Roth

retired

from

partnership in Dean Wit¬

Co. Jan. 31.

of the

Labor

interfering

at

Tom Ball Opens

least,

means

profits made
through the operation of football
pools, which are a highly popu¬

HOUSTON, Texas — Tom Ball,
Jr., has formed Tom Ball, Jr. &
Co.

with

offices

Avenue

to

at

1007

conduct

Preston.

securities

a

business.

lar

device
of
disguised lottery.
Indeed, the Labor Party has ac¬
tually decided to run such pools

in order

replenish its fighting
the next general elec¬
farcical

The

arise

that

situation

Socialist

will

candidates

be

denouncing from their
platforms the capital profits made
by speculators and investors un¬
der

Form

to

for

will

the

Conservative

which

people

many

to

enable

to

are

fortunes

make

LAKE

offices in

CITY, Utah—Ed¬
Coltharp has formed
Investment, Inc., with
the Newhouse Building

to engage

in

H.

ward

Coltharp

a

securities business.

Jack Luban Opens

Govern¬

though their election
will
be
financed
by

Coltharp Investment

SALT

JACKSON

even

expenses

Jack

Luban

curities
35-31

HEIGHTS, N. Y.—
is

engaging in

business

85th

from

a

se¬

offices

at

Street.

without

the

working for it — unless
filling in of football pool

coupons

be

can

considered

Overton Inv. Co.
PRINCETON,

In

event

any

appreciation
values
both

the

litical

stock

the

on

exchange

unpopular

as

as

government and its po¬

opponents

assume.
a

not

are

profits

of

After

handful

of

all

are

inclined
is

it

not

professional

to

only

I".

!.

deChamplain.

Building.

election.

few

of

small

benefit

investors

from

it

It provided

windfall

to

hundred

the

in
a

widow

Investment
is

from

Street.

J. —Overton

Company of America

engaging in

ness

N.

a

offices

Albert

securities busi¬
at

164

Overton is

Nassau
a

prin¬

cipal of the firm.

specu¬

lators and big investors who have
benefited by the rise. There are

millions

Opens

as

work.

way.

and

every

SOUTHERN PINES, N. C.—Carl
F.
Olsen
has
become affiliated

liberali¬

gambling

derive

government

benefit

disappeared.

now

by

equalitarianism

with

to

With Dietenhofer Firm

ter

Party

the stock exchange

admit it in public.

government that method of mak¬

the

by

Socialists

time price

same

Thanks

but

be

justification
given to those

every

stands

limited

Last,

steady

can

man,
woman
and
child
in
the
United Kingdom.
But is would

and

control and rationing, maintained
throughout the
regime of the
Labor, Government, provided an
opportunity for building up for¬
tunes through "black market" op¬

erations.

a

It

gov¬

thing, Britain
some stock exchange
during the six years'

also

market.
with

unduly worried about

experienced

her

on

foundations without

cure

the electoral consequences of this
setback.

under

economic

depends

largely
last 15

however, that the

seems,

ernment

preciation

Both

the

setback in this equalitarian trend.

methods

often

live

there

doubtedly

Mr.

has

to

for

capital

result

a

declined

high taxation and
limitations.
And
Bri¬

dividend

become

ment,

Butler

markets

to

on

the influence of

partly through
partly because

and

profits earned

figure prominently in the Social¬
ist program at the next general




is

years.

the

at

entirely

equalitarianism
Kingdom than in

part,

their

put

or

of

duties

their

Jr. is now affiliated with
Bache *&
Co.,
Dixie
Terminal

Jersey

that

from

there

United

death

Bacon,

Avenue,

view

most

tion.

ruff Building.

E.

that

for taxation.

on

year

stage was reached
industries came

a

war.

the Soviet Union where the range
between highest and lowest earn¬

City,
J., under the direction of V.

exington

of

higher degree

And above all they

rising trend.

cumstances

Ohio —Hugh

the

high taxation has in¬

believe

to

son

fund

at the

it

(Special to The Financial Chronicle)

since

deed succeeded in scaling down
high incomes; indeed there is rea¬

the

is

King Merritt & Co., Inc., Wood¬

CINCINNATI,

Permanent

the

profits

subject

volume

the

year

on

The

speculators

by
have

tors

ways

Joins Bache Staff

Britain

over

have

industries
A

these

zation of trade under the present

anything but happy last

was

tation

(Special to The Financial Chronicle)

securities business

a

rom

by no
having
re¬

developed from time

as

W. Mueller is now affiliated with

A. C.

which

were

He refuses, however, to introduce
legislation for a statutory limi¬

SPRINGFIELD, Mo.—Frederick

Street.

from

increases

increases.

positions
time

far

restraint

denial

Street.

Staff

become

Matthew has

d with J.

to

Cal.—Donald

ANGELES,

&

keeping with
the
general
equalitarian
trend
that
has
gained such a strong
hold

ago

of

exchange

months

life.

claimed

This attitude is in

change quotations could not pos¬
sibly have risen to anywhere near
their
present levels.
It is true

Slayton Staff

(Special to The Financial Chronicle)

Olive

LOS

The

is

expanding
industrial
and the relaxation of

to

creases,

Joins

the

it.

It

of

point

chequer of having failed to take
steps to prevent the dividend in¬

Joins Richard Harrison
SACRAMENTO,

economic.

situation

earnings

to

than

po¬

suing policies resulting in an in¬
crease
of industrial profits,
in¬

pretty much run its course.

l.

ex-

trend

a

though there will be plenty of short-term money

as

seems

stock

accusing the government of pur¬

usually takes place when things are uncertain in the money mar¬
kets.

view

much in demand, and

unexpected development because this kind of

an

the

exaggerated,

gard

have

The short-term Treasury issues are very

this is not

reason

would

place since 1953

means

made

the

of

satisfactory

in

boom

economic

an

vulnerable.

which they consider to be

chases

in

rises

the

about

as

to

prospects

The

circles

rather

view

official sources. It is evident that pension funds,
the public and private ones, have been making selected pur¬

monly known

headache.

a

further

Not all of the buying which has been going on

scale down basis.
in the

wishing

the

exchange

official

From

the outstanding marketable issues because they

with

unpopular

are

result

a

exchange

majority of the electorate and are
damaging to the prospects of the
party that can be "blamed" for

election year give the govern¬

an

litical

losses in

capital,

new

a

firms

the

of

raise

Selling for Tax Losses
tax

resump¬

widely envis¬

change without enthusiasm is

Investors in

as

stock

the

is

rise

its

a

Gratifying as this would
the point of view of in¬
vestors, speculators and the exec¬

why

3s of 1995

prices

earned
in

be from

is

competition for the investor's dollar, the
not going to find too many homes of a really per¬

rise

aged.

of

of

the

the

stock

of

for

millions

foreign buy¬
ing for their survival. Their do¬

ings is probably wider, allowing
The big prewar for¬
tunes, too, have disappeared for

tion

source.
For the present, however, it seems as though the
competition from other types of investments is going to take some¬
thing away from the issue. This probably means that until there

slow-down in

politi¬

situation,
possibility

the
of

of new money purchases of the
refunding 3s by institutional investors, with life insurance com¬
panies supposedly among the more prominent buyers of this issue.

a

Lin...g

it into the well distributed classification.

There have also been reports

the

and

rate

-

t

There

the

to

vested in the 3s of 1995.

order to get

ow¬

higher

the 2y2s have

proceeds

come

tempor¬

a

ary

the stock market, the mortgage market and the corporate bond
market. There has been, and no doubt there will.continue to be, a

seems

have

to

as

writ¬

it

to

such

sources,

of

ing

•

is endeavoring to work out a solution to the rhoderately firmer
interest rates which the monetary authorities afe imposing on it,
as

Even

though at the

Taking Hold

market, aside

of

Gov¬

circles.

New 3s

spread profits

mental

ern

the

possible

recent

depend

that the wide¬

assume

Ex¬

in

all,

mestic

opposition

was

concern

British

expected, along with what takes place in the stock market and the
mortgage market.

T'

Stock

generously.

lease

new

two

assume.

rising

change during recent months

to what should be

as

The

—

more

of

which

near

LONDON,

operations of Federal will give future clues

a

on

until

tigntening operation is

it

given Britain's luxury

matter has caused

invest¬

their

Above

profits

in Governmental circles.
Concludes, however,
appreciation of Stock Exchange values are not as
unpopular as both the government and its political oppo¬

profits

end.

or

of the Socialists, and the

se¬

negligible

their

on

treat

to

members

concern

some

the

evidence tnat the money

the part

on

big

making

them

months, says profits
made by speculators and investors, because of the
persistent
rise of prices, have been subject to a
growing volume of criti¬

Although a great deal of the buying which has been appearing
in the refunding 3% bond is considered to be
pretty much of the
permanent type, it is going to take more of this kind of buying
as

the

on

The
have

equity.

trade unions themselves
cured
by
no
means

By PAUL EINZIG

27

a

who
small

With T. R. Peirsol
BEVERLY
ward

W.

HILLS,

Dunn

has

welcome
with

a

pounds invested

in

.!

(Special to The Financial Chronicle)

staff of T.

R. Peirsol

Calif.—Ed¬
joined
&

Santa Monica Boulevard.

the

Co., 9645

28

The Commercial and Financial Chronicle

(940)

persuaded to adopt the opprocedure and to regard

were

Continued from first page

posite

Business Outlook

signal to

Good,

Basic

the

recent

taken in con¬

recovery

between 1948 and

total

the

but

1954,

profits in

corporate

President

,

pleased that

chosen

has

,.

.

,

„

especially

are

<3) The danger that we will as

Principles
.

We

the

30%

than

The vigor of

reverse

pomic policies.

But Some Roadblocks Exist
fore the year closed.

fluctuation as a
all its basic eco-

economic

every

to

pre-

first of his

'basic
economic tenets,' the proposition
that ".
competitive markets,
rather
than
government
direcsent,

the

as

very

and 1954 were actually lower than
expenditure plans already set in they were in 1948. Thus corpora¬
motion, suggests that economic tions have been compelled to pro¬ tives, are as a rule the most efand
sell
about
one-third ficient instruments
for
organizexpansion will continue during duce
coming months.
It holds out the more in the way of goods and ing production and consumption
Attempts to control prices and
promise that we shall achieve a services, with no increase what¬
It is as though an wages by administrative rulings
high and satisfactory level of em¬ ever in profits.
ployment and production within employee had to work harder and are both impractical and perm-

junction with the investment

harder to

year."

the current

This conclusion is in close agree¬
ment with

our

Signs

views.

own

.

.

keep

of his company,
more

with the growth

up

but never got

any

for it.

pay

They cannot prevent infla-

cious

tion if the basic fiscal and mone-

tary causes of inflation
ent.

Furthermore,

well

By

upward, and that the
contraction of last year was only

come

wages,

lmpede

The present
mood of both consumers and busi¬

of

free flow of

multiplying that we

are

on

our

are

way

transient episode.

a

is

nessmen

such

sustain

to

as

a

high and rising rate of economic
activity.
Consumers, it is clear, have not
felt either the need or the desire
their

curtail

to

There has been

expenditures.
"wave of fear"

no

scale postpone¬
ment of buying.
It is true that
consumers
are
becoming
more
leading

to

large

discriminating

re¬

stimulating chal¬
as
cause
for

gards this as a

salaries, and other forms
personal income after taxes—
increased by 35% during the same
Clearly it is in the area
business profits, rather than of

period.
of

difficulties

Since

community views the
with

Businessmen

timism.

what is

high

op¬

confidently

growth

economic

anticipate

profits play

for

incentive

stagnation
This

the

tax

centrate

long

tapering

off

of

rather than

-

eral

on

plant and equip¬

ment remain

at

very

high levels.

preparing

new

many

services, which

new

lives in the future.

our

These

business

future

growth

preparations

for

in themselves
prosperity in

are

to

our

present.

in

the

what

is

the

not

the

of

course

1954,

find

we

slight

eco¬

nomic contraction which

the

occurred,
in certain

haste
outside government

eager

quarters

proclaim

an

to

and

emergency

to

the

such

were

proposed

measures

to weaken the forces

as

making for economic growth, by
departing from our normal reli¬
ance

individual incentives and

on

policies

for

growth"
impart an

upward thrust to gen¬

activity."

This

is

subject of long-term growth
emphasized in current

statements

by all schools of eco¬
nomic thought, and rightly so. Yet

this

objective is sometimes inter¬

preted

as

never,

in

meaning that

the slightest or
is evi¬

even

temporary

dence that

objective
that

and

we

of

is too often

It

setback

have failed

long-term

desperate

in

remedies

are

Since

live

we

individuals

fact
are

men

that

in

must

we

the

society

a

of

accept

actions

free

of

not predictable to the last

degree of mathematical precision.
We

know, in general, that
type of economic climate will
can

one
en¬

a

most

I

trust

frustrate

willingness

that

cool

prevail

heads

to

—

abandon

will

the

continue

to

this type of counsel,
they did in 1954.

as

over

Although
there

is

should
is

the

outlook
one

cause

the

fact

have

busi¬

generally

good,
which

that

not

of

aspect
some

it

That

concern.

business

participated

profits
in

growth of the economy in

the

recent

years.

Figures in the statistical appen¬
dix

to

the

President's

report

in¬

dicate that profits after taxes have
within a narrow range

remained
of

one

seven

of
a

billion dollars

for the last

while all other facets

years,

our

economy have experienced
substantial growth in the same
In particular, total cor¬

period.1
porate

sales

1 These

taxes,

increased

figures

apply

the adjustment for

<s

not

over

the

by

more

profits

after

adjusted for inventory valuation.

If

ftliow

to

a

2

inventory valuation

made, corporate profits after tax
drop between 1948 and 1954 of
billion

dollars.

(See

Report.)




gin

of

must

But, if

we

want

behavior with

no

mar¬

uncertainty whatever,

deal

with

page

189

of

slaves

robots

or

beings.
minor economic fluc¬

every
tuation is regarded

for

we

not free human

If

immediate

is

growth.

to control

and

Stagnant Profits

ness

courage

ways

nervousness

stage

later

a

con-

ibey

decisions

are

and

have

reaching

in

be

to

closest

the

the

to

most

at

correct solu-

a

tion.

The

imposition

trols—or

imposition—can
block

future
rect

the

to

of

the

even

only

economic

view

our
a

a

of

our

Such

be

"basic

a

economic

choice:

jobs and

generate

as

incomes

.

if

eco-

is widely shared

nomic future

by

workers,

businessmen,
farmers, and consumers."
This
emphasis on the central
importance of confidence reap-

frequently in the Report,
and might be described as its keypears

note. This theme is indeed

emphasis

when

quarters

outlook is

worthy
time,

present

being

are

we

the

at

urged from
the economic

that

one and that
only drastic measures, even though
they may involve departure from

free enterprise

our

that

ous

it

But

us.

our

dynamic

principles,

should

economy

only

if

be

obvi-

remain

can

retain

we

can

con-

in-

our

stitutions.
Of

this

course

emphasis

fidence does not
the

President,

and

need

we

not

be

a

Polly-

vigilant.

be

a

future is in store for

rosy

matter

absurd

what

to

serious

are

they

had

when

we

better

be

and

faced.

But,

done, these

dangers do not arise from the

sibility that

they
that

the

will

be

from

which promote growth, we would
never lack
for such excuses.
We

in

would be in the position of a

will

be

inade-

the

possibility
competitive system

free

undermined

and

impeded

botage.

hy¬

pochondriac, who never has time
to live fully, since he is
always
busy caring for imaginary or tri¬
fling
ailments.
Our
long-term
goals will require
exertions.
them

and

time

Let's

some

some

not

take to
minor

strenuous

abandon

our

beds

ailment

every
occurs.

Incidentally, business firms
tending
their

more

and

more

investment

long-term

plans

outlook,

and

to

are

base

on

then

the
to

its

operation,

misunderstanding
As

ening

us

(1)

it,

see

we

tax

the

m

it

types

investment.

growfh,

projected in the Presi-

as

flow

a

of

great

capital

machinery, tools, and
things needed in

piant,

t£e

ire

wiu

t

continuous

all

economic

Our

dent>s R
and

certain

on

of income, that
seriously impede future

partiCular

other

This

producti0n.

1can

x

flow

people>s

and what is taxed

5,

on„nA

be

cannot

saved

away

invested.

or

Future

It

encouraging to see that
the Administration recognizes the

It

are

four

of this type threat-

push labor costs to
level.

present

should, nevertheless, be rec-

.

,

This

an

could

that

ognized

a neavy

tend

would

taxes

present

are

burden. Lower taxes
to encourage work,

Prompte more efficient business
practices, and create more jobs
through

costs
as

can

the

our

raising of prices

can

reduce

temporary shifts in the
wind in carrying out those plans.

the sale of goods.

They have learned the futility of
attempting to revise their policies

The

recognition

that

economic

growth will provide a margin for
tax reduction is in close accord

with

this

the

on

thinking
have esti-

subject.
We
that our potential growth

mated

the

over

Association's

next

five years

will, if

economic developments permit
Jits attainment, make possible tax

with every

strictive

minor drop in the rate

of economic
most

activity.

unfortunate

if

(2)
in

an

The danger that deliberate

attempt
effects

It would be

wage

government

continuous

rises.

to

offset the remonopolistic

of

This is the policy of

inflation,

advocated

competition with private business.
This

is

stated

in

the

following

words:

Government

"The

also

made

in redrawing the line
separating private and public en¬
terprise. Steps were taken to dis¬

progress

of numerous enterprises for
operation was inef-

pose

which public
ficent

doubtful

of

or

Simultaneously,
the

increased

advantage.
Government

the

amount

of

its

con¬

with private firms for
necessary services and facilities—
tracting

as

alternative

an

to

producing

them itself, often at higher cost to
the

hasten the eco¬
development of our water

taxpayer. To

nomic

and yet restrict Fed¬
participation to what others

resources,

eral

incapable of accomplishing,
partnership principle of Fed¬
cooperation with local in¬
terests,
public or private, was

are

the

eral

launched."
We

the

applaud both this view and

steps the Administration has

taken,

is

and

taking,

imple¬

to

The notion that the gov¬
should

fields

enter

of

productive activity in which pri¬
vate interests stand ready to pro¬
vide

is

what

is

needed

most

a

pernicious one.
Especially dan¬
gerous
is the belief that such
government enterprises can pro¬
vide

".yardstick" for judging the
of the
privatelyenterprises in the same
field—as though a tax-supported
a

performance

owned

activity

compared

be

can

which

one

must

own

with

continuously

way.

The Quest for

The
forth

Security

President's
as

Report

the

of

one

sets

func¬

proper

tions of government the strength¬

ening of "the floor of security for
individuals

in

our

(p. 6).

The

families

and

industrialized society"

But

this

distribute

is

security is a legiti¬
aspiration
and
desirable
objective. But serious questions
dividual
would

and

in

be

increased

of

governmental

an

To pretend

the

$9

in

any

which

on

cannot

for granted.

it pleases,

way

of

rate

the

economic

calculation

simply be

Unless

taken

have

we

a

tax

security

fact

extension

such

ment.

that

whether in¬

to

as

family

is still

assumed

based

raised

be

must

not

billion margin for tax reduction
will be available for Congress to

growth

Economic

social

mean

Sur¬

mate

had

I

does

The

of the Federal Old Age and
vivors Insurance system.

totalling $9 billion,
better explain that

reduction

welfare

The

by

programs.

OASI

system, for example,
unproven social experi¬

false

encourage

otherwise is to

hopes

of

"secu¬

rity" which may be cruelly dis¬
appointing. We lack any adequate
information
of

the

cost

the willing¬
ability of employed peo¬

and

ness

ultimate

the

on

program,

on

reduction specifically designed to

ple to pay those costs, and of the

correct

the

growth-limiting

effect, of the

tures of

our

present tax structure,

there may
any

be

no

fea-

opportunity for

important
How

believe

margin

must

that

be

the

$9

used,

billion

over

the

next five years, to cut the rate
of corporate income taxation and

reduce

in

the

the

If

degree

personal

of

gradua-

income

tax

plan is followed, it
will be possible to lower both the
our

top rate of corporate tax and the
top rate of individual tax to a

uniform level of 35% at the

end

of five years. First things must
come first, and the primary task
is to correct the

gross

discrimina-

growth, and unless progress is
made in eliminating them we will
not have the margin for tax reduction that growth can provide,

gram

of

far

go

Business
The
business
community
is
especially appreciative of the

the all-

on

of private sav¬

be

a

program

the

and

future

Because
these

of

be

will

the
our

of

value

on

benefits

and

population?

effect

the

hence

such

of

our

the value of

it

promises?

uncertainty

and

be

for

initiative

our

the

on

pro¬

What will its ef¬

the

on

will

dollar

OASI

socialization

investment

self-reliance
What

the

what

and

on

growing needs?
fects

the

does

toward

saving,

result

exists

on

other

questions, we
decry the tendency toward

must

continuous

and

indiscrimate

ex¬

pansion of government-sponsored
retirement

insurance.

Although

the

original

was

to

ence

minimum" at retirement, re¬

cent

objective of OASI
provide a "basic subsist¬

revisions

amount

Government Competition With

program

process

ing.

tax cut.

We

monetary expansion will be used

ignore

re¬

recommended
under
acting a general, though modest,
this heading include: extension of
reduction in taxes and, at the
the
coverage
of unemployment
same time, continue the program
which was begun last year of insurance, increases in the amount
and
duration of benefits under
reducing barriers to the free flow
9^ funds into risk-taking and the unemployment insurance sys¬
tem, and some further extension
job-creating investments."

prosperity by jam-

restrict employment, just

to

government

measures

tions which, over the years, have
ming the machinery of production crept into our tax system. These
and
distribution.
Raising wage discriminations are roadblocks to
undermine

of

For- justify its existence by paying its

investments.

new

tunately, with our economy continuing to expand, we can look
forward to larger Federal revep9es irom existing tax rates,
This, together with further oconornies in expenditures, should
make possible next year another
step in the reduction of taxes.
Congress might then consider en-

tion

there

our

The President

determination

degree

ernment

is

destructive effects of

the

duce

ment it.

Reductions

Tax

President's

capital

of

of

out

CQme

savings

to

through
through sa-

The danger that the monopof labor unions will

unworkable

for

;

that

danger

coricentrated

unduly

either

currently:

used to

market»

burden will prove so heavy, or so

or

olistic power
be

as-

thereby

were

the

of

The

(4)

rates.

chief dangers

who

«Qut

services

their

future needs. Rather

our

arise

pos-

free competitive

our

enterprise system
quate for

no

pursue

ahead

and

said

us

make. There

we

dangers

all is

It

that

pretend

policies

what mistakes

would

government

WOrkers

iced

that we, or

mean

advocate

would

or

con-

on

attitude that all will be well

anna

Such a polinvitation to

an

to

responsibility for employing

any

gloomy

a

excuse

an

abandoning the basic policies

.

feeling of confidence in the

of

the

^at
sume

di-

should

goals.

happy

be

unions

present all sorts
0£ impractical demands, knowing

road-

a

President is also, in

a

investors,

wouid

con-

free economy has great capacity

to

icy

jabor

of their

be

controls

second

tenet" of the

any

up

Thursday, February 24, 1955

.

reiteration, in this report, of the

govern-

on

take

to

heavy tax burden.

direct

threat

attainment

economic

rely

spending

siack jn employment.

by the firms and in¬

who

problems

ment

agencies—

government

than

stake

have

policy,

settled

£hf0

wage

fidence in ourselves and in

called for.

distressing phenomenon.

this

economic

rather

our

growth,

ship at the first alarm—is

This

by

save

individuals to behave in
which lead to economic ex¬
pansion.
We can be sure that
other kinds of economic policies
will
discourage
enterprise
and

competitive markets.

at

economic

some

progress,

precalculated methe-

a

argued that
most

must

we

upward

our

fall below

the

Many of

con¬

much

is

free

"recession."

is to

to "seek to

economic

The

•

to

the

all

The

that

statesmanship and vision
of the highest order.

urge adoption of drastic measures
counteract

and

to

make rationing inescapable.
They
lead logically to a situation where

Growth

matical trend line.

viewing

cor¬

economic

total

—

expenditures

products and

or

can

announces

economic

future.

producing defense goods

trols

another

breeds

lead

permanently
renounced
as
function of government.

"basic

on

the

immediate

but

in¬

for

this year

term

in

special¬
ized plant and machinery used in

control

controls

any

cost

necessity

intention

decline in the need for the

disturbing

increases

President

fense spending last year—and the

In

further

Long-Term

the

economy

discredits

record

or

The

Despite

the

for con¬

cause

One form of

proper

expected

stimulant

\ seven-year

porate tax reduction.

demand

a

a

that

pressing

his

will enrich

their

production,

over

period is genuine
cern.

providing

as

experi-

block the

and

goods

price

dividuals

are

de¬

direct

create

jobs—as well

as our

production

made

and,

important, they

more

is

major role

a

pres-

are

demonstrates, direct controls

ence

supplying funds for new plants
and
equipment — thus
helping

preparing for growth.
Business
is
investing in new plant and
equipment to meet the expanded

Business

foreseen.

should be absorbed out of profits.
On the contrary, it demonstrates

future

immediate

be

to

are

in

creases

the business

incomes, that economic

consumer

the Committee that

assure

can

including

-—

contention

alarm.
I

individuals

of

than

rather

lenge

business

but

the disposable in¬

contrast

by certain thoughtless persons as
a means of preventing unemployment. It would destroy the value
of our money and wipe out our
accumulated savings.

..

of

have

benefits

placed

the

considerably

above this level for many partici¬

pants.

In

our

opinion,

this

will

impair the incentive for individ-

Volume 181

Number 5406

.The Commercial and Financial Chronicle

.

.

29

(941)
uals to provide for their

security by their

age

old

own

Continued

from

4

page

savings.

own

>■

.

people must also
feel reservations in
regard to re¬
cent tendencies in the field of un¬

The State of Trade and

employment insurance. The orig¬
inal objectives
of
the
program
to

were

encourage
business
efforts
to
stabilize

its

ment, and to

to those who have become

and

own

these

a

unem¬

of their

have

Some

some¬

times been lost sight of by
eager
reformers who have wanted
to
make

the program

a

is

it

stands,

the

this

decentralization

adapt the details
centralization
ties

for

tion

of

its

of

needs.

own

In

offers

able to

program

addition, de¬
opportuni¬

comparison
results.

and

should

to

age

all

benefits

the

in

real

the

road

to

expansion

are

general

lies

free-

our

so

in¬

to

as

production and to provide

cial

be

programs

/

*

production is responding to the widening demand. In
ended Feb. 20, output of steel for ingot and castings
half a point over the preceding week and reached 88.5% of

The American Iron and Steel Institute announced that the op¬

erating rate of steel companies having 96.1% of the
capacity of the entire industry will be at

-

(revised)
The

based

I

President
have

has

his

vance

how

reassured

am

economy

pected to act in
rive

from

solutions
dicts.

type

set

statistical

a

the

the

to

a

materialize

ad¬

"model"

of

be

ex¬

models

of

them

in

never

our

ex¬

1945

and

1946.

Centralized planning, based
presumed governmental clair¬

on

average

week ago.

because

year

73.6%.

Jan.

1,

of

Jan.

1,

85.0% and

1955.
pro¬

The operating rate is not

lower

was

1954

as

was

the actual weekly production

ago

or

capacity

of

as

125,828,310 tons

month ago the rate

A

are

than

based

on

capacity
annual

The

in

1955.

1955,

week's

the

like week

Car

impoundings^of

Heavy

factor, failed

CLEVELAND,
Baker

and

become

Ohio—David

Paul

S.

associated

Gilbert
with

L.

output

&

have

Merrill,

Building,

Co.,

Union

members

west Stock

in

1953.

Loadings Rose 0.5% Above Level of

Loadings of

Competition

the

Mid¬

a

HILLS,

has become af¬

Co.,

liquidation and
prompted by reports that the British Marketing
Board was selling cocoa to United Kingdom manufacturers at re¬
duced prices.
Raw sugar prices were barely steady as the ending(
of

the four-month-old strike in Puerto Rico brought increased
offerings in the New York market. Lard displayed a heavy under¬
tone, reflecting continued weakness in loose lard and the prospect
that the run of hogs will continue large for a long time.
Hog
prices were irregular and slightly lower for the week as were
quotations for prime steers.
Sheep and lambs were mostly steady.
Trends in the domestic cotton market were mixed with prices
showing little net change for the week.
Steadying influences
included moderate domestic and foreign price-fixing and the out¬
look for a somewhat tighter supply of cotton.
There

was

Sodak Uranium Stock

U. S. Car

for the latest week, ended Feb. 18,
according to "Ward's Automotive Reports" assembled an
174,954 cars, compared with 168,059 (revised) in the
previous week.
The past week's production total of cars and
trucks amounted to 190,010 units, an increase above the
preceding
week's output of 7,176 units, states "Ward's." Last week's car out¬
put is 4.1% above the previous week, "Ward's" notes.
In the cor¬

Capper & Co., New York City,
offered to the public as

recently

issue of 1,200,000

shares of Sodak Uranium & Min¬

25

All

cent)

at

cents

for, it

was

stock

responding week last

per

While there

was considerable variation from region to region,
during the period ended on Wednesday of last week
was slightly higher than in both the preceding week and the com¬
parable period of 1954.
*

retail trade

Valentine's

boosted

Day

sales

somewhat

items not traditionally sold

many

as

announced

on

a

the week

was

ing operations, including explora¬

tory and developmental costs.




esti¬

by Dun

& Bradstreet, Inc., to be 1% below to 3% above
Regional estimates varied from the corresponding

ago.

year

levels

1954

by

the following percentages: Midwest —2 to —6;
—4; East —3 to -fl; New England -fl to -f-5;
South and Pacific Coast +2 to +6 and Southwest +4 to +8.
Although accessories sold well, most women's apparel was in
less demand than last week.
There were significant decreases in
Northwest

0

to

year

113,659

cars

were

assembled.

purchases of coats, suits, furs, Winter sportswear and lingerie.
some cities reported improved buying of cruise cloth¬

ing.

,

Cold

in

weather

parts

many

of

the

country

boosted

demand for men's overcoats, and sales of haberdashery

the

increased.

Confectionery and bakery products were particularly popular
and there were increased purchases of sea food.
gain
in instant types.
Fresh fruits and vegetables were- more popular
the

a year

ago.

output last week

was

past week

ventories

1953.

the

Mortality

176
was

which

occurred

30% below the

involving

in

the

comparable week

pre-war

of

level of 293 in 1939.

liabilities

of $5,000 or more declined to
week, yet exceeded the 184 of this
size recorded a year ago.
Among small casualties, those with
liabilities under $5,000, there was a drop to 18 from 31 both last
207

from

week and

in

in

the previous

the corresponding week of 1953.

ing businesses had liabilities in
with

24

a

week

excess

as

compared

ago.

Wholesale Food Price Index Drops Sharply
To Four-Month Low
The easier trend in foodstuffs continued in evidence last week,

causing
a

at

a

further sharp dip

in the Dun & Bradstreet wholesale
The index for Feb. 15 fell to $6.69, from $6.67

price index.

week
new

earlier.

This

was

the third

successive

low since Oct. 19, 1954, when it was $6.59.

$6.69,

compares

with $7.11

a year ago, or

a

drop and marked
The current level

decline of 5.7%.

Moving higher in wholesale price the past week were flour,
tea, peas and eggs.
These were heavily outweighed by lower

automobiles remained high, although dealers' in¬
to

dollar

volume

increase.

furnishings
of

below year-ago levels.

were

wholesale

trade

in

the

week

was

un¬

changed from the previous week but considerably larger than in
the corresponding week of 1954.
Delivery dates were often de¬
layed, and many retailers ordered to increase their inventories.
Department store sales on a country-wide basis as taken from
the

Federal

1955,

Board's

Reserve

showed

no

index

for

the

change from the like

week

Feb.

ended

period last year.

12,

In the

preceding week, Feb. 5, 1955, no change (revised) was registered
from that of the similar period in 1954, while for the four weeks
ended

Feb.

12,

1955,

an

increase of 3%

was

recorded.

For the

period Jan. 1, 1955 to *Feb. 12, 1955, a gain of 7% was registered
above

Fifteen of the fail¬

of $100,000,

new

continued

Purchases of home
The

Commercial and industrial failures dipped to 205 in the week
ended Jan. 17 from 238 in the preceding week, Dun &
Bradstreet,

above

last week.
Sales of

Business Failures Attain A Five-Week Low Level

food

incident to min¬

and-

gifts at

than

a

expenses

for

merchants promoted

Housewives continued to buy more coffee, with much of the

share.

The net proceeds are to be used
pay

For Week

Exceeding Like Period of 1954

Last week, the agency reported there were 15,056 trucks made
in the United States. This compared with
14,775 in the previous

(par

Feb. 23.

to

loan.

Trade Volume Shows Slight Increase

the

of said shares have been sub¬

scribed

Government

Retailers in

187

Offering Completed

one

the

The total dollar volume of retail trade in

Capacity Climbs 4.1% Above Previous Week

Failures

common

into

season through Feb. 4, growers have placed
2,104,000 bales in the loan and have withdrawn 238,000 bales, leav¬
ing loans outstanding on 1,866,400 bales of 1954 cotton.

mated

well

ing Co., Inc.

selling prompted by the steady decline in the

some

of cotton

the start of the current

Loadings for the week ended Feb. 12, 1955 totaled 643,859 cars,
of 20,153 cars or 3.2% above the corresponding 1954
week, but a decrease of 37,745 cars or 5.5% below the correspond¬
ing week in 1953.
increase

an

down

an

Leading coffee

selling

Purchases

Inc., reports. At the lowest level in five weeks, casualties were also
slightly from last year's toll of 215, although they remained

Beverly Drive.

speculation

week.

this time.

Calif.—

filiated with J. B. Hanauer &

a

prices this

coffee

green

Cocoa continued to weaken under pressure of

hedge

(Special to The Financial Chronicle)

140 South

it

new

roasters also announced further downward adjustments in whole¬
sale prices for their products.
'o

Week Ago

freight for the week ended Feb. 12, 1955,
0.5% above the preceding week, according

revenue

placed at 7,850 cars and 886
trucks.
In the previous week Dominion plants built
7,294 cars
and 1,009 trucks.

J. B. Hanauer Adds

Dann

the

under

prices,

the big exporting countries led to further

among

sharp declines in

increased 3,124 cars, or
to the Association of American Railroads.

Canadian

Nicholas R.

wheat

stimulate

yeek and 23,023

Commerce

of

Exchange.

BEVERLY-

to

totalled 36,600,000 bushels, against 32,500,000 the week be¬
fore, and 39,200,000 a year ago.

reflects

-

Turben

fears subsided

war

as

week

1955,

(Special to The Financial Chronicle)

lacking

amount of free wheat available before the

estimated

,Two With Merrill, Turben

was

loan* ordinarily a
being felt that the
crop comes in will
be quite adequate for all purposes.
Substantial declines in CCC
stocks of wheat were reported due to continued heavy clearances
for export.
Activity in grain and soybean futures on the Chicago
Board of Trade picked up moderately.
Daily average sales for the
bullish

previous week,

The automobile industry

action.

Buying support generally

and tension in the international political situation beeame easier. '
Pressure was particularly heavy on wheat, corn, and rye.

Institute.

a loss of
10,000,000 kwh. below
when the actual output stood at 9,922,000,000 kwh., but an increase of 1,361,000,000 kwh., or 15.9%
above the comparable 1954 week and 1,716,000,000 kwh. over the

of

were irregular and
mostly lower for the week, with
showing the greatest losses.

23,100 bales.
Loan repayments in the same week were 37,400
bales, the largest weekly volume for the season thus far. From

of electric energy distributed by
the electric
industry for the week ended Saturday, Feb. 19,
estimated at 9,912,000,000 kwh., according to the Edison

This

that

Grains
wheat

Net CCC loan entries reported in the week ended Feb. 4 totalled

Edges Slightly Under Level of

power

was

Electric

year ago.

movement

amount

light and

in some staple commodities resulted in a further
slight lowering of the general commodity price level last week.
daily wholesale commodity price index, compiled by Dun
& Bradstreet, Inc., fell to 277.46 on Feb.
15, from 278.73 a week
previous.
It compared with 275.83 on the corresponding date a

The

capacity of

1954.

Previous Week

voyance,
is the opposite of our
traditional reliance on freedom of

individual

a

percentage figures for

this

predicting

which

witness

as

capacity of

like week

2,051,000 tons.

comparable

pre¬

of

a

placed at 1,756,000 tons

The

mechanical

problems it

way

perience with

in

may

gaps"

—

to

1955, and to de¬

Economic

have

the

pleas
up

model

the

"deflationary

that

resisted

Council

annual

For the

duction

correct in¬

responsibili¬

ties under the Employment Act of
1946.

and 2,150,000 tons

an

industry's ingot production rate for the weeks in 1955 is

on

Electric Output

a

its

on

steclmaking

of 89.2% of
capacity for the week beginning Feb. 21, 1955, equivalent to 2,153,000 tons of ingots and steel for castings as compared with
89.1%

In conclusion, I wish to state
that, in my judgment, the Admin¬

terpretation

giving strength

are

week

*

istration has placed

The builders of pipelines

construction.

as

of the segments of construction that is

124,330,410 tons

the real foundations of
security.
$

others, such

Steel
the

at

can,

only a palliative and at
they can be destructive of

worst

one

Downward Trend In Past Week
Weakness

a

getting ready
dig again, and to supply them the McKeesport, Pa., mill of
U. S. Steel Corp.'s National Tube Division is stepping up
its
work of welding plates into line pipe.
Scheduling calls for sub¬
stantial shipments of pipe to start March 1.

was

insurance

has

to

this

security
of

industry

automotive

cover¬

From

continually
more
opportunities
for employment. Government so¬
best

big

capacity. This gives a yield of 2,135,750 net tons, largest since
October, 1953. At some mills and in some districts, steel produc¬
tion exceeds theoretical capacity. Current leader is the St. Louis
district where ingot production is at 102.5% of capacity after
jumping 16 points in the latest week, this trade journal states.

and

states.

enterprise economy,
crease

the

rose

it is only a short step to the im¬
position of such general standards
by Federal statute.

The

If

we

Frankly

recommend

of

others.

products help offset sea¬

some

evalua¬

and

disturbed at the presumption, in¬
dicated in the President's
Report,
that the Federal Government can
standards

in

to demand for plates.

i

de¬

as

sirable, since each state is
to its

declines

It's

unemploy¬

ment

gard

Seasonal upturns in

will be glad to see seasonal strength in

compensation system is ad¬
ministered by the states^ We re¬

Wholesale Commodity Price Index Holds to

pickup, continues "Steel," is seasonal, but that

seasonal downturn during the coming summer, the steel industry

unemployment.
As

the

of

good, too.

sonal

for

panacea

push of the

Today, it notes, demand for some of the other forms of steel
reviving. Feeling the improvement are makers of plates, bars,
pipe and merchant wire.
This is good, since it signifies that
business is strengthening on a widening front.
It gives the steel
industry assurance of business support from products other than
the light,-flat-rolled goods.

ready and
job if offered.

objectives

They've been stimulated by the production

is

stand

willing to accept
But

fault

no

who

.

Industry

automobile industry.

in

employ¬
limited benefits

pay

ployed through

sheets.

for wheat, corn, rye, oats,
beef, hams, bellies, lard, coffee,
cottonseed oil, cocoa,
beans, potatoes steers hogs and lambs.
The index represents the sum total of the
price per pound of
31 raw foodstuffs and meats
in general use and its chief function!
is to show the
general trend of food prices at the wholesale level.
prices

•

..Thoughtful

of

that

Retail

3954.

trade

volume

in

New

York

City

last

week

declined

reported that despite the loss the showing
was
creditable, since only ten stores were in operation the past
week as compared with eleven in the like period of 1954.
about 3 to

5%.

It

was

According to the Federal Reserve Board's index department
sales in New York City for the weekly period ended Feb.

store

12, 1955, registered a decrease of 3% below the like period of last
In the preceding week, Feb. 5, 1955, a decline of 8% (re¬

year.

vised)
for

the

was

reported from that of the similar week in 1954, while
weeks ended Feb. 12, 1955, a decrease of 2% was

four

reported.

For the period Jan. 1, 1955 to ''Feb. 12, 1955 the index

advanced

1%

♦Comparison
Jan.

4-9

week

in

from that of
period
1954.

begins

1954.
with

the Jan. 3-8

week in 1955 and

with

the

\

30

The Commercial and Financial Chronicle

(942)

IN
4

net

Represents

over

100

stocks.

own¬

a group

AT

/TO

O

of

A

J

information folder
and

prospectus,

clip

this ad and

uary,

mail with your name

and address.

NATIONAL

SECURITIES &

RESEARCH

CORPORATION

Established 1930

120 Broadway, New York 5, New York

new

of

million
year-end figure.

Association

tional

tual

the

the

mu-

during January

$109,783,000, an increase
over
December, 1954 purchases,
which
amounted
to
$99,858,000.
Share
redemptions
in
January
rose to $47,299,000 from Decernber redemptions
of $35,005,000,

Companies which has 117 mutual
fund
members.
In the previous
month, 6,882 plan accounts were
An estimated 216,000 accumulation plans were in effect

opened.

-

1955 total
$32,730,000 while

date

in

1954

asset

value,

Reports Gains

net

the

Affiliated

Fund, Inc.,

reporting

for the three months ended Jan. 31,

reveals

1955,

resulted

investments

investors

new

the
inand

much
of
from
the

growth
creased

shares

fund

1954

new

over

totaled

Investment

of

$131

Investor purchases of

when investors opened 8,618
plans, according to the Na¬

On Feb. 9,
were

same

net assets

of $313,-

investments was respon- 295,815, equivalent to $5.82 per
sible for some of the increase in share. This is after payment of a

*

Popularity of accounts for regular purchase ol mutual fund shares
continued to increase during Jan-

assets

Affiliated Fund

than

more

Fund's

T

•

upenea in JCin»

common

For Free

increased

months,

Industrial

figure was $18,225,000. While
appreciation in the value of the

s

O.Olo iMCU) /ICCOUTIIS

twelve

Financial

asset

By ROBERT R. RICH
i

ership in

of

Inc.

the

on

SERIES

PAST

$14,500,000.

STOCK

•

assets

Fund,

Mutual Funds

NATIONAL

THE

net

A MUTUAL INVESTMENT FUND

^

Thursday, February 24, 1955

...

old

by

in

capital gain distribution amount-

$14,859,650
(29 cents a
during the period. Three
months earlier, at the end of the

Monthly Investment Plans under
individuals are
investing

Company's

which

regularly

total

now

$53,000,000.

Additions

LARGEST

JANLARY

sales

fiscal

last

the

ing

«rs

in

to

$280,t

the portfolio

quarter

u

Oct.

year,

31, 1954, net assets were
914,822 or $5.49 per share.

than

more

to

ing

share)

Fund,

the

dur¬

American

were

A-

FdctArn

T

p"

Delaware Fund's 16 V2-year history

Incorporated, El Paso Natural
reported.
Nelson,
President.
The
Gas Co. $4AO Convertible Preon
Jan. 31, the Association
re¬
Cash, U. S. government securi¬
sales for the month amounted to ferred, San Diego Gas & Electric
ported.
ties
and
short-term
obligations
821,505, a. 125% increase over the Company, Tennessee Gas TransAssets of the 117 member mu¬ held
by the 117 mutual funds to¬
sales of $321,862
in January of mission Company and United Air
tual funds also increased during
taled $307,903,000 on Jan. 31, 4.9%
1953. Redemption of shares during Lines, Inc.
January
the Association report
indicates, reaching $6,240,767,000 °f assets, compared with $308,- the month, according to Mr.JNelHarry I. Prankard 2nd, presiJan.

on

31,

high, and

a new

BANK FUND

•

FOUNDATION FUND

•

GROWTH FUND

gain

a

sales

(In 000's of $) >.
Dec. 31, 1954

Dec. 31, 1953

$6,240,767

$6,109,390

$4,146,061

'

v.

■

•

•

.

"*•

Sales of

$99,858

$862,817

47,299

35,005

399,702

—

December 31,

Distributed by

HARE'S

~

1953

December 31,

purposes

$263,647 4 "

•

"

the above

or

local dealer.

Gross

December, 15)54

January, 15)55

Plans

(Estimated)

6,882

8,618

dustries Fund
have

to

a

1954
high of

new

$26,918,000 according to the quarterly report issued by the fund,
This compares with $22,429,0^00 a
ago.

year

-

216,000

amoiirrted to $5.19

James H. Orr, President;--stated'v
in his letter to shareholders that4-7
the

net

value

asset

the calendar year end was the
highest in the fund's history, being $24.24 as compared to $19.11
a
year ago.
This is a 26.8% in¬
ATOMIC

DEVELOPMENT

MUTUAL FUND,

is

Inc.

designed to provide

crease

in

managed investment

in

a

1

variety of

companies participating
in activities

resulting

from Atomic Science*

months.

NET ASSET VALUE per

Bond

The

America
•

twelve

Investment

at

the

share of

Trust

end

year

of

was

highest in the trust's 29
year history, according to the Annual Report just issued by the
Trustees.
This
compares
with
$20.96 a year ago, an increase of
$22.69,

Net

Assets

of

the

Trust

*

UBUIC DEVELOPMENT SECURITIES OIL
1033 THIRTIETH STREET, N. W.
WASHINGTON 7. D. C

against $4.05

as

Itotal

^

rp

£(j,® J^r«QcOUSAT

outstanding

i0

c*

Oplli DIOCK

Corporation,

an investment commanaged by Dominick &
Do mi nick, have approved a two-

of the fund's total

year-end,
ous

pany

i£r>vJle xflm S? A, andf
^..PcL^ L0f i
per share,
according to
nouncCment

t0 an?

an

the

new

split

Cash and bonds totalled 27 %
31

T

1S ?

additional

uning

,■

shares

of

the

with the Securities and

Exchange

Commission early in March.
,.

,

common stock

ASSET

NET

value

per

share

Growth Industry Shares, Inc.,

record gross sales in January of
$6,853,499—up 24.7% over those

month
the

the

in

26-year history of

mutual investment com¬

big

pany.

,

Dec.

31,

1954,

$37.23,

was

of.
on

in-

an

Na-

Canada

the New York

outstanding totaled 154,809 at the

.

■

.

versified

Value Bine Fund^ stood at

company

total

assets

-J1L

This compares with
$7.4 million and $7.2 million re-

spectively

at the

same

time last

closed-end

listed

on

cv.

^

change. As of Dec.
1954, net assets amounted to

31.

million

of

end

1954, against
31, 1953.

Dec.
AN

INCREASE

net

assets

son

EATON & HOWARD

EATON & HOWARD

BALANCED FDND

STOCK FDND

Fund in

stock

EATON

me
prospectuses describing
Organization and the shares of your

&

BOSTON

BOSTON

outstanding

333

on

and

market

in

its

net

a

of

ing long-term growth of prin¬
cipal through: (1) investments
in the

in¬

net

value

its

A mutual investment company

incorporated in Canada, seek¬

of

value

of

the

Fund

31,

last,

Montgomery Street

SAN FRANCISCO

to

$5,708,874,

op

share

a

on

total

of diver¬

net

(2) reinvesting all

earnings at low tax cost.

Dec.

equal

the

and industries

means

holdings of Canadian

stocks and

brought the

by

se¬

portfolio.

increase

resources

of Canada

sified

$14.84

1924

by Hud¬

shares

14,562

in

(1954) LIMITED

Prospectus

HOWARD

ESTABLISHED

on

$1,250,467

1954, based

in

asset

INCORPORATED

24 Federal Street

of

of

recorded

creases

The

Managed by

was

curities

The Keystone Company

Please send

141,335

ap-

proximately $16,200,000.

SO Congress Street, Boston 9, Mass.

Fund

dollar

increase of more than $2
was the largest single year
gain in the fund's history. Shares

.

of

and

General

wfl
$2»661,790 at the end of 1953. The

investment

■

„

BOND, PREFERRED AND

City

Wellington
with

million

$400

■

•

,

*n

increase

Address.........

the

and-railroads 2%.

Custodian Funds

Name.

on

preferred

banks and finance 3%; in-

tional Shares Corporation is a di-

the

L*-Ia4

asT

stocks representing the remaining for the corresponding month * of
9% of the total portfolio,
1954, for the second highest saltes

be

Mp Macdonald also stated that
360,000

with

1954

about March 2

oen

'$!«'

$259,890,647 on Jan, 31 a year ago.
Fund launched the new year

section,
industrials constituted 40% of the
stocki'fj6selii^,'frbin!?''-.e,!ltire. fund, followed by utilities

will

earlier.

•

year.

Funds.

from 56% the previ-

up

,

64%

investments at

year.

Dec

by Ranald H. Macdonald, president. It. is expected
that the

of

$35, com- capital
gain
distribution.
Mr.
504,37(f Hughes stated that on Jan. 31,
1955, net assets of the Fund

cfgb.

year

53,847,010

of

high

all-time

on

Common stocks represented

i_

Stockholders of National Shares

a

figures

was

$$8.61

with

an

.

^

ten

45% in the first quartet;

from"

over

st?ck+thf°uuf5 a
<*r crease of $11 ^2. or
fmm
f?ring to stockholders, orve addi- the year-ago figure of $25.91. Ad-.
GAVIN H. WATSON, President of r10113/ ?/\arm£°
^,°
red .or ea?„ justed for capital gains distributhe Value Line Fund Distributors, Kwo f1*
°f ?nng ^lce w
tion of $0.54, the percentage rise
Inc., reported that sales of the £ determined later.
The com- was 45.8%.
Value Line Income Fundand the
3Net assets on Dec
statement
covering the offering
oS,
,last»
Value Line Fund reached a new

$10.1 million.

your

OF Affiliated Fund shdreg

51,130,740
three
months
Of the increase, 2,058,563
sset value per represent
shares issued in payd. ton
612,723* ment of the company's year-end

r's,

$16,148,335. N.
share at .- yea
shares

O-j:*

net assets

than 30%

"of $21,447,280,

pared

$38.2 million

COMMON STOCK FUNDS

.

^

of its fiscal year, which began on
Nov. 1, 1954, as compared with the

•

•

-

53,847,010.

high of

time

new

g:

-:;

•

shares

1953.

Value Line Income Fund stood at

Keystone

t

,

of Dec. 31, 1954 were $6*657,000
comoared to $6,356,000 a year agocompared to $6 356 000 a vear aeo

monthly high of $5.2 million;
As
of Feb. 1, 1955, total assets of the

—#

At the end of the period,

shares outstanding were at an all-

f net assets,

as

m rm facts and ntnnosncm

•

SHARES

,>r

*7^ ■..*
National Shares

8.3%.
Total

Dec. 31,

_

sharfe at

per

>*

Investment Company on Dec. 31,
1954, amounted to $7,930,260 compared , with
$5,258,712
a
year
earlier. Net asset value per share
on

^

»

period

OUT^fANDING, total same quarter a year ago. Dollar
..andjfet asset value of volume was $12,179,055, as comthe.
Association^ of Investment Companies.
Massachusetts Life Fund, a pared with $8,405,608 in the same
^"^balanced -fund,^11 reached new quarter a year ago.
£pf
31,1954,"
Shares outstanding increased to
of Gas In- NET' 'ASSETS of tftg Wisconsin highsAn-1954

of Dec. 31,

as

increased

amounted to $12,222,964, an increase of 45% over
saies
0f
$8,405,608 in the first
three months of our previous fisthe

cai year.

fiscal

first

capital stock

Sales of shares of
in

year ago.

estabHshed^a

V

-'

preserve

al]y high current income."

They totalled $15,989,608 '±.
'
410% increase over sales of SALES

a

vear
,...

\

TOTAL NET ASSETS

for

■

Period*

in

Opened

*SOURCE: National

fice

to

they have, and not to sacriincome growth for abnorm-

$3,132,931 Jim the,like period'last ^increased

Jan. 31, 1955

Accumulation

New

~bat

record.

Plans in Effect

of

also

a

the

in

just

future—not

the

first

the

"The

states,

is
operated
to make
money for its shareholders and to
obtain for them more income in

sales of $1,177-,838

over

sales

quarter
Accumulation

■

-Month of-

No.

360%

up

in the same month

-

'

*">

and

of the objec-

Fund

the

company

sales of $5,423,499 were the
largest for any
month
in
the
Fund's six-year history and were

307,903

31, 1955

•January

19 RECTOR STREET, NEW YORK 6, N. Y.

Prospectuses may be obtained from

January

a summary

of

tives

„Mr. Just reported that January

*

1954—308,701

LTD.

dent, in

gross

Holdings of Cash, U. S. Government and Short-Term Bonds

Funds for various

investment

of 1954

$109,783

Redemptions
Mutual

December, 1954

Shares

of

last,

quarter of its fiscal year.

12 Months

-Month of-

INSURANCE FUND

for

ords

January, 15)55
•

20%
31,

-

Fund broke, all previous sales rec-

f

INCOME FUND

the. rate of

at

TELEVISION-ELECTRONICS

Jan. 31, 1955

Total Net Assets

Linton
Fund's

less than 1% of the Fund's

or

assets, which
on" Jan.
•totaled $25,947,096."

1955

FUNDS*

OPEN-END

117

JANUARY,

.

were

son,

701,000 at the end of 1954.

STATISTICS c

COMPANY

OPEN-END

•

W.
W.

by

sported

were

the Association

to

may

be obtained from

authorized investment dealers

or

384,767

shares outstanding. This compares
with total net assets of $4,458,407

Vaxck, Sanders
Ill

DEVONSHIRE

&

Co.

STREET

...

State




Prospectuses from,

your

Investment Dealer

or

the above.

on
a

Dec.

share

31,
on

1953,

equal

outstanding.

BOSTON 9, MASS.

to $11.91

the 374,371 shares then

New York

Chicago

Los Angeles

Volume

181

Number 540G

...

The Commercial and Financial Chronicle

(943)

Bullock Forecasts Production
'

;

'

,

;

••

-

Personal Progress

.

MILAN

Index Increase
Forecasts of improved business
conditions received
a

support

from

study of the economic outlook

made

public

Investment

by

Calvin

Bullock's

Management

Depart¬

ment.
on

comprehensive

a

an¬

alysis, the Bullock analysts fore¬
see

rise in the

a

Federal

Reserve

Index of Industrial Production to
132 this year from last
year's

Gross
in

National

1954

at

$369.4
principal

The

year.

responsible

for

125.

Product, which
$357 billion, is

totalled

estimated

billion

this

increase

pattern foreseen for 1955
indicates a fairly rapid rise in

output during the first

half

year

stability thereafter, the study

stated.

This level of economic

tivity

would

indicate

that

ac¬

this

year

corporate profits after taxes
would increase about 8.5%.
On

the

basis

of

past

jobs,

unemployment

increase
Jones

estimated

Industrials

in

and

to

two

thirds

trend

from

of

an

to

dividends

with

the

on

1954

$19,

than

"The

earnings

$27.30

year,

$17.06

of

Vice-President,

GEORGE

president

A

$1

annual

billion increase in

rate

of

inventory

$29
from

payout

a

of

of

earnings.

inventories

is

a

significant factor in the level

.unemployment,

stated.

"Our

3.45%

"the

estimate

increase in

study
is

Gross

for

a

National

of

accu¬

Fund, to
fill
the
created by the resigna-

quickly lower the unemployment
figure.

McKenzie

will have

Theodore G. Patterson. Mr.
is
member

Fed¬

on

eral Reserve creuit policies."

I. D. S.

versified

of

Investors

earnings

Di¬

its

of

twelve months ended Dec.
31, 1954
to

$10,761,000

$7.40

or

share, compared with $7,908,$5.44 per share in the year

per

000 or

according

today.

to

ments, permissible under the
revenue

amount

to

$1.33

code,

new

which

share,

per

con¬

tributed to the record high income.
TOTAL

Trust

NET

at

the

Feb.

on

as

1,

assets

close

1955

of

of

the

market

$4,933,963.82,

was

1,

1954

of

It

has

remain

a

in

almost
17

100

U.

cities

cities,

is

leading manufacturer of equip¬

ment

in

four

tioning,
heat

fields

air

—

condi¬

heating,

ventilating and
equipment of various

transfer

special

types.

The

link

between

these

lion

for

1953

the

and

with

t

dividends

1951).

dif¬

a

ferent facet of heat exchange with
marked expansion potentials re¬
lated
broadly
to
population

growth.

A i

growing

at

r

a

conditioning
is
quicker rate than

the

heating business
provides close to 50%
sales

and
of

now

Trane's

dollar.

Trane

regards itself as "an or¬
ganization of manufacturing engi¬
neers"

and, therefore, places great

emphasis

upon

velopment

research

more

products

program

For

1954,

million

$1.79

1956

lion

is

Consistent

with

its

Trane

of

a

program.

engineering

has

directed

its efforts toward the manufacture
and

sale

tions

of

both

in

engineered
the

zation

has

of the

installa¬

heating and air

conditioning field.

This speciali¬

room

kept the company out
air conditioning field

which the management regards as
an
interim device and a business
far

too

easy

phasis
than
did

on

enter

merchandising
Thus,

suffer

air

curred

in

from

the

conditioners
1954 and

rose

from

of about 229%.

months

of

rather
Trane
glut of

hurt the

1953,

oc¬

sales

an

1946 to

increase

For the first nine

1954,

million compared

1953

earnings of
Further improve¬

for

the

be

to

contract

was

shown

recently

construction

of

would

increase

floor

sales

were $36.9
with $33.1 mil¬




accepted

a

of his time to their

to 225.000 square feet.
The
capital structure is rela¬

tively simple, with about $2.5
of

$2

debt

and

1,200,000

par common stock.

sheet

position

mil¬

shares

The bal¬

has

consist¬

ently been satisfactory with total
current

assets

well

twice

over

total current liabilities.

Dividends

are

presently

paid at the rate of $1
conservative
course,

pany's

expansion

requires
back

as

share. This

a

dividend

reflection

a

rate

as

is,

the

of

program

that earnings be
much

being
of

T7~

.

which

possible.

levels, the shares are
selling at about 20 times estimated
1954

earnings.

Roe

Jr.,

nounced

GSp

&

Farnham

of future

tentials

some

discounting

possibilities, but

of

the

situation

the po¬
and

n

Fund

President, anWard's
election,

Mr.

mem-

board to eight mem

„,„T'

TELEVISION
ment

SHARES

Manage-

Corporation,

announced the
eppointment of Carel van Heuketut

aSvan
^"President.

Mr.

Heukelom has been

sociated

with

organization

the

since

forefront of develop¬
field, indicate that

ments

in the

in

Trane

will

n

management

March, 1953. He

thinking
that

see

Machines

do

they. make

—

fe

m0re

this

who

man

not

reduce

itJ

hj

OF

;

but automobiles

aie

jobs

make

now

million.

In

1940

^and^ yeaMer'o'veS
™norkars

J, y?arS later>

Genaran1nnEleetrlc no?

hlres

DIRECTORS

of

In-

A.

-

creased

the

country's wealth, and

wealth

new

elected

D i

Controls.

Archibald

r e c

He

t

o

has

been

r-Management

more

and made more jobs—
forget that it takes about
$12)000 of somebody's capital in-

plant and equipment

for every worker's job. We have
more capital investment and more
than

now

w*h

it all

before

ever

more

products>
more
jobs, and higher wages. Today we have more automobiles,

telephones,

more

radios,

and

a

host of other products in America

world combined.

tells

on

—with

the

tanooga,

mobile

com-

Tennessee, of

which

president.

was

He

he

born

in
Seaforth, Ontario, and is a
graduate of the University of Toronto.
He holds the professional
degrees of Fellow, Society of Actuaries (F. S. A.), and Associate,

Casualty Acturial
(A.C.A.S.).

Society

Harlow

us we can now put

They

all

say

we

for

the road at
back

one

seats

have

now

time

empty.

an

horse

every

Curtice

163 mil-

auto-

in

th«

country — (and sometimes I think
for every jackass too — the way

people

some

reminds

said

drive).

of

me

the

And

Minister

this
who

should sing hymns while

we

driving our automobiles.
At 45
miles per hour we should sing

"Highways are Happy Ways"; at
65 miles'per hour "I'm but a
Director-Securities Divi- Stranger here, for Heaven is My
sion, succeeding H. Vincent Flett Home";
at 75
miles per hour
who
has
resigned.
Mr.
Smith "When
the
Roll
is Called
up
comes
to I.D.S. from Union Se- Yonder,
I'll be There"; and at
curities Corporation, New York, 65
miles, per hour "Lord, I'm
where he
was
assistant to
the Coming Home."
Joseph

E.

Smith

has

been

elected

president.

He

is

Lawrenceville

a

graduate

School

and

of
at-

tended Princeton University prior
to serving in the United States

Army

There's No Substitute for Courage
_

,

„

But after all,
must know
nor Labor
develop

every young man

that neither

Brains will

nor

substitute for

a

Capital
ever

personal

William L. Read has been
courage.
Obstacles appear at
elected Treasurer of Investors Di-'
every turn in the road—and obversified
Services, Inc., to sue- stacles are
things to test the stuff
ceed Harry C. Thompson who has
we
are made
of.
You can't win
resigned as of March 1. Mr. Read all
the time in any line of enhas been with the company for
deavor.
The best baseball team
several
months.
Previously
he in the world loses
from 50 to 60
was
associated
with
the
First
games a season. Frank Woolworth
Southwest

Company, investment

aI?+uS' -ln Pa

Tex.as> and

with the investment banking firm
A.

of

G.

Becker

and

Company,

C^ag%lLir\% ?VS a in Des
the Middle West, born natAVe

of

Moines

Iowa

and

Princeton

worked hard to

and

tjien

jjve

cbain

stock

is

listed

on

the

all

it

from

today

from?

come

pro¬

Where
from

—

ever-improving cooperation

between all three of them.

here

And

again,

like

promote,
upon the

Brains

the

these

three

industries

are

well for Labor

very

to

the

deny

and

attribute

think

to

that

we

progress

University

three

of

first $50
his first

stores

absolutely fail,
over $800,"Saturday Evening

000

on
the
before

post"

.

}

he
d

u

could
f

make

fit

it

Du_

and

^ worked n years and spent
^7 million before the first round
Guy Lemmon, longtime execu-"of Nylon was sold. Frank Mun-

narvaid

tive
.

Law bcnooi.

specialist
.

in

the

„

investment

j<rTT-»ou

department

of

I.D.S.,

Manager,

1

has

Private

been

Place-

ment Section—Securities Division.

Gustave

R.

_'

been

.

.

Nubel,

senior

_

,

named

many

Manager,

years,

has

Research

Section—Securities Division.

stop

ever

can

or

of

power

all

to itself—but did either

tele¬

now

phone from Saginaw to San Fran¬
not

because

not

because

of Labor, and
Capital—but be¬

of

cause

of the

Brains

These

politicians who

—and

finally

try's greatest

acteristics

Alexander

of

became

our

rant

coun-^

man.

sey's

remarkably

career,

after

successful
failures,

repeated

well

1st—For
business

promotes

industries, furnishes

jobs. creates our wealth, and
prosperity around—and it
Private Enterprise, not Gov¬

passes
was

our

ideas

a

three

take

home

to

to .succeed

man

he

in

must

old-fashioned

honesty.

There

is

other way.

no

2nd—For
ceed

in

corporation to

a

business

it

must

suc¬

develop

and maintain cooperation between

Labor, Capital and Brains.
3rd—For a Nation to; keep itself
strong and provide ever improv¬
ing standards of living for its
people, it must encourage Private
Enterprise and discourage Gov¬
ernment

ownership

and

controls.

History

records
not
one
single
where Government planning

case
ever

raised the standards of living

of any people.

And now, just one more
thought
I am through.
Don't, let any
politician tell you that business
is not dependable. The
and

history of

American business is but the his¬

tory of the growth of high ideals,
of

men's

confidence

in

one

an¬

other, until today over 90% of all
our
country's billions of dollars
of

business per year is done, not
by the exchange of money, but by
exchange of little pieces of
paper on which honest business¬
the

sign their

men

Bruce

Barton

"This

names.

says)

is

the

(as

mag¬

nificent edifice of American busi¬
ness—a

the

'Temple of Trust.'"

wonderful

thing about

And

it

all

is that you and I and
every busi¬

large or small, in every
town in every state in the
Union,
has a chance to make this "Tem¬
nessman,

ple of Trust"
nobler

by

chooses,

a

insecure.

day

—or

a

little stronger and

living—or,

he

more

These young men of to¬

of

our

tomorrow

little

duct and

if

little weaker and

little easier

a

a

his

they become

as

leaders

to

business

will

trust

find

each

harder—by

it

other,

your con¬

mine.

And so, as good Americans who

love
on

our

its

country and want to pass
blessings to the generations

yet to come, let

get behind the

us

trustworthy President we have in
Washington today and take an
active, hard-working, fighting
part
in
his
great
constructive

in

our

have

learn

practice
the
formula of thrift, hard, work and

Abraham

one

who

men

we

us:

crusade

suffered

the

top,

tested

with

might'be tersely described as: "40
failures, 40 successes, 40 millions."
Lincoln

of

the

to

cyrus H. K. Curtis lost

graduated

was

saw

his

save

defied in five different elections

The

will

have

we

Labor and Capital and Brains and

industries

lion people

the

to

comes

from

vice

built

and don't

the Volunteer State
Life Insurance Company of Chat-

was

has

alyst in the company's investment

term.

as

ahead

much

as

risen

produced has in-

ever

department for

Midwest Stock Exchange.

twice

Brains

years

Brains has

for

longer

duction

and

30

or

An so, out of this little study of
American business and the char¬

shares continue to have con¬
siderable appeal for accumulation

the

25

over
45'000 new PeoPle
products
which
didn't
even exist
only 11 years ago.
Every labor-saving machine that

making

alone, than in all the rest of the

Edward

to

Brains—and Brains can't get any¬
where without Labor and Capital.

machinery. Livery stables
used to employ 100 thousand men

__and

Diversified Services, Inc.,

the

over

Capital

see

in the United It is all
there are about
Capital'

million and most of them

J?5'000'

win

and

blessings

?

h,

failure after another—was badly

gain

rise

1900 there were

ianlwn

an-

capital

to

God's

every

they
also dependent one
other. Labor can't get
anywhere
without
Capital
and

nf

?

four

can

we

forces,

^

JS?ZTenmaToSi
;a. ot
P®"™"1 .™t

over

Labor,

her

+,rr.£„„T,;+oy,

L

of

men

gave

mankind.

jobs for

more

and

„,Q(toc.

machinery

in this capacity.

pany:

con¬

its

benefit.

chance

a

share

Looking

machinery has not been

riC" vestment in

named

that

can

tbe detriment of the

j^g

citizen
his

producing

toils, but rather to his everlasting

this
as-

WnchJnJ'
ihrnoa' YnH ™ui

the

expectation

advent of

Fund

bringing the board to eight
bers

This high ratio ob¬

viously reflects

man

emancipated

cost-of-living

mass

And yetv any straight

laboring

that

Bell.

Hagey,

from

At present

today but for
machinery?

ernment,

from slave wages and

cisco

StTin

com¬

plowed

the

due

space

tinue

Company

$13.8 million in

million in

em¬

which

many companies.
Sales of The Trane

$45.5

with

engineering.
not

room

of

to

in¬

projected

are

expected

A

which

ance

well-developed training

an

with

of

result

a

56,000 square feet of
plant in 1955
a similar
project planned for

as¬

five employees in the home office

background,

are

1955.

new

and

engineer—the

with

share.

a

ments

improve
existing
ones.
The emphasis on engineer¬
ing is underscored by the com¬
pany's statement that one out of
an

$2.07

were

earnings

compared

awarded

$1

and

months

by the company at about $2.70 a
share, an increase of about 50%,

the

a

earnings

1954

reflecting
improved sales and reduced taxes.

in

to create

in

nine

comparable period of 1953.
crease
of about 70%,

de¬

completed

company

1954,

and

laboratory building which will
sist in the

of

now

FrTo

pany

the first

would

be

for

gain

share compared with $1.22 fdr the

Recently,

work.

further

a

distributed

For

personal arrangements.

nADDTcmApn

The

of

Earnings per share in 1946 were
$1.03 and in 1953 were $1.79 (both
figures adjusted for 100% stock

of the four fields represents

Fidelity Fund

a

nf

likely in 1955.

various fields is the science
of heat exchange.
Basically, each

as

interests

are

1954,

higher

jobs and decrease
public. How much

the

®

Vestors

months

and

to

to devote

expected to total
about $50 million for the full
year
of

for

have just announced the
following
changes in officers of the com-

first nine

prices

partnership with Preston, Moss &
Co. of
Boston, Mass., and desires

rnn'ti?"
continue

S.

Canadian

rave against our big men and
j^g corporation always fail to
/ou that they do increase

Patterson

on

Security i Like Best

about

and

understood

Mr. Patterson has

BOARD

offices

been

$3,250,048.50.

Continued from page 2

tell

^ ™rew
u.L „]
^5
?
^Qeno^.,f.p
?',
1? miUion Jobs
States and today

Mutual

compared to total net assets

Feb.

and

American

preliminary
the company

Non-recurring tax adjust¬

internal

the

past year that Mr.

of various

wholly owned subsidiaries in the

amounted

of

Director, pending the completion

Services, Inc. including

undistributed

Association

President

Inc.

the

Earnings

earnings

Bar

the

Society of Corporate Secretaries,

would

Net

of

a

American

unemployment

decisive effect

a

V/r01lr

also

of

Old
vice
The

Fidelity

vacancy

trend

and
our

yfari'. J1*!? keen elected a director

the

inn

The

McKENZIE,
Connecticut, a

and secretary
of
Company for the past 10

Flintkote

mulation might require 175,000 to
200,000 additional
workers
and

"The

it

"American Business—Unlimited"
products

K.

"The trend of business inven¬
tories might be the
deciding fac¬
tor.

which

its inception.

since

ap¬

the

was connected with

Greenwich,

1953,

very

could

as

capacity he

summer, when the work force is
swelled by those
seeking summer

figures released by

might

Mr.

in

increase

profits

directors

quite

relation¬

corporate

of

Ridge Mutual Fund.
serve

ships, according to the study, the
in

board

Continued jrom page 7

been

Popovic will continue to

are

The

less

the

has

fund

domestic investment to $49.2
billion from last
year's $45.9 bil¬
lion.

this

to

of Blue

and therefore it seems
possible that during the

and

Dow

elected

for 1955

POPOVIC

Product,

components

this

personal consumption, with a pro¬
jected rise to $240.1 billion from
$233.7 billion in 1954 and private

and

D.

proach the four million mark.

Based

.

X'itoJ*

.

31

to

preserve

efficiency, solvency
Government.

good

old

"Ship

for

America

and

morality

Thus

of

will

State"

our

sail

proudly on—in good times and in
hard times—safely and surely—to
ever

enlarging strength and free¬

dom

and

Progress.

32

/

The Commercial and Financial Chronicle

(944)

strong, even bitter, opposition there. It is not easy
writing to be certain precisely what the net effect

arouse

Continued from first page

at this

effect

the

of defeat

It

We See

As

of

stabilizing the prices then ruling in this
country. But the fact is that the New Deal idea of manag¬
ing the internal economy of this country to suit our own
convenience was and is quite inconsistent with freedom
at the border.
All such systems, as their originators—
notably Lord Keynes — saw and admitted, could succeed,
even
logically, only in a "closed economy" — that is to
say one which is effectively sealed against influences from
abroad which would not necessarily be in conformity with
plans at home.
Full

Since that time

have enacted

a

so-called full

still saturated with the notion that the Federal Gov¬

are

ernment

somehow

can

see

to

it that

no

great amount of

in this country, and is indeed
course, But policies of various sorts

unemployment develops
committed to such

,a

which may be designed to reach this
tial to some such end in this country,

end, indeed be essen¬
frequently would not
be well designed to promote the same end in, say, Britain,
or France, or Holland,
where essentially the same ends
are
sought by their governments. Moreover, such steps as
would be taken for this purpose are often quite ineffective
or
dangerous in the presence of free competition by
foreign producers.
There is
sort

no

to doubt that considerations of this

reason

finally and slowly

success

upon

in

1933

all

made

the

itself

other

felt.

New

Keynesianism,

(including communism) which
managing or controlling business for the purpose of
promoting the general welfare in defiance of natural
aim at

forces

are

thus

to be

seen

quite basically in conflict with

"one world-ism."
But

last

week

we

again reminded that other
objectives were about equally
opposed to a return to greater freedom in international
economic dealings. A rather lame and often
impotent
were

groups with other ideas and

page

in the

course of the measure
through the House several
developments made it plain as a pikestaff that protection¬
ism is widespread not
only among the so-called die-hard
Republicans but among the Democrats, many of whom

from

come

states

which

in

earlier

times

were

free trade.

strongly

Commission.

the
have

of

seen

We should find the situation
could discover evidence that the

what

From

our

I

ure

was

primarily based

opposition

to

this

overall

own

objections to the grant of
this power to the Executive. No evidence of this
sort, how¬
ever, appears in what has taken place in
Washington dur¬
ing the past lew weeks. On the contrary, the forces which
upon

declining

part, the work of the Hoover

a

Commission must

viewed

be

as

a

total

in

Stated

just about

volume

graphic

more

equaled

chalked

terms,

airline traf¬

domestic

passenger

by the rail¬
And railroad

up

Airlines

the

to

whole.

as a

Have

Now

Popular

in

airlines

the

pointed

interest

the

of

fact

this

industry.

travel

The

first-

Pull¬

volume in 1952.

Domestic
whole

trunk

increased

miles

during

airlines

their

1954

nevertheless continues.

stage is here to stay as the certi¬

succeeding

support

been

airlines

scheduled

now

considerable
substance
great opportunities to
the discriminating investor

have

and
offer

10.5%.
annual

which

rate

of

which

outlook

its

influ¬

make for
realistic continuing apprais¬

ence
more

may

beneficial to both

als and will be

year

the

rate

of

With each

the base upon
growth is cal¬

of growth to level

Certainly, a fuller appreciation
of the industry's current position
conditions

to 25%

culated obviously becomes larger.
Also, there is the tendency of the

what

the

the 20%

as

gains recorded by the in¬

off

some¬

the degree of penetration
total
market
increases.

as

the

Nevertheless, with or without sta¬
tistical adjustments,
there is no
end
in sight as to
the dynamic
growth

tendencies

of

air

trans¬

portation.

the airlines and the investor.

As

with

more

the

airline

factors

to

unfavorable

But

also

elements

em¬

invest¬

airline

current

in

circulars.

ment

now

receive all the

dominate and

phasis

coin.

exist

and

they
should
be
recognized
for
the
threats they pose.
I hope to dis¬
the favorable AND unfavor¬

cuss

able

underlie

which

factors

the

industry's future so that the group
may be placed in proper perspec¬
tive.

Groups

Domestic trunks,

(2)

International carriers, and

major
is

investment

public

concentrated

in

the

and

and my

The airlines have demonstrated

rapid

a

gressive

growth,

achieving pro¬
peaks in traffic from

new

Despite the phenom¬

to year.

year

enal

gains achieved thus far and
has

domestic

seen

trunk

passenger

miles increase

million

1929

in

to almost

16 billion in

1954, dynamic growth
remain

nounced in the

The
more

very

In

revenue

industry's future.
have

airlines

inter

the

formerly

much

done

city

-

miles

coach

air

249 million

some

schedules.

than 5.6 billion

more

miles

senger

flown on
For
1954,

were

revenue

most

upper

It

seen

is

house than in the lower branch

legislature. One

can




local

of

scarcely doubt that the

the

national

measure

will

service

lines

to

the

trunks,

domestic airline traffic totaled al¬
most

what the Senate will do with
generally believed that those groups
opposed to anything of the sort are stronger in the

measure.

lion, with the bus lines chalking
another 18 billion. Adding the

16 Vz

billion,

which

repre¬

sented about 65% of rail and

90% of bus.
while

some

It is significant that,

total

inter-city travel (ex¬
decreased in
compared
to
1953, air

cepting automobile)
1954

as

travel
cut

was

gain

able

of

to

better

forge

than

a

clean-

10%

in

been

been

in

1949,

dustry's
a

total.

34%

It is

mar¬

now

of

the

ac¬

in¬

growing and

two may easily repre¬

year or

percentage of air¬

line volume.

structure.

due to

the

coach

coach

air

around

other

able

absorb

to

While

such

fare for

a

day flights.

passenger

adjustments
and

other

serve

The Fare

should

be

due

mile.

them¬

First-class
around six
Here too,

family fare
promotional tariffs
to

to reduce the

Considerable
up

average

first-

this

traffic

whole

would

attention
the

to

fare

industry

like

as

obtain

to

a

some

upward fare adjustment. The CAB
says,
"No."
If and when
segments of the industry run

now

some

into rough financial weather, fare
relief may be more readily forth¬

coming, but by that time consid¬
damage may have been

erable

done.

The airlines

also

are

being hurt

—temporarily at least

—

mail

know, the

side.

pay

domestic
most

part,

you

airlines,

are

sub¬

compensation for
domestic airlines is

temporary rate basis of

a

cents

ton-mile, subject to

a

final determination

ing

the

for

longer

no

the

on

Mail

on

45

As

trunk

larger

in

underway.

now

a

proceed¬

a

there

While

be slight adjustments in this

may

rate, up or down, for the separate
carriers, the net effect of this par¬
ticular

action

quence

to the airline outlook.

is

little

of

conse¬

Flying "First Class" Mail
By Air
Far

important

more

in

flying

thus

far.

predomi¬

revenues

represent

mail

first-class

almost $1

Despite

air

by

selected route segments

over

in the East and later

Coast.

this

For

first

the West

on

experimental

op¬

eration, the airlines receive com¬
20.04

in

cents

ton-mile. Started
this service has
through De¬

per

October

1953,

been authorized

now

fered

1955.

It

that

by

all

the

most

is

of

Office

Post

billion, passengers

the

steady

increase

in

and

none

diverted to the rails.

has

Everyone
satisfaction

including
riers

and

expressed, great

with

the

this

experiment,

participating

particularly

happy?

Post

the

But why
Office
be

Post

According to its

ascertainment

own

the

report,

cost

Post

Office has received from the publice $2,310 a ton for transporting
mail.

lines,
able

the

After

Post

retain

to

of this

paying the air-,
Office has been
than

more

amount

The

this

as

railroads

diversion.

friends

in

with

should

be

the

ating earnings have been

revenue

years. For
1951, with an all-time high of
$105.9 million, net operating in¬
come declined to $95.1 million for

was

1952, $88.1 million for 1953, and to

a

ing for three successive

car¬

the

Office Department

airline travel and revenues, oper¬

declin¬

of¬

the

to

participating airlines in this nonpreferential service was accepted

agree

for about 86%.

note¬

mail

the

clear

the

accounted

the

are

of the "experiment"

consequences

this

Passenger

ing

a

Structure

careful

The

shouldn't

leverage—

more

and down—is present in

air coach business due to the pro¬
nounced
seasonal
characteristics
of

with

all operat¬

on

directed

structure.

worthy

class fare to around 5.6 cents.

both

continue,

faced

are

Accordingly,

cember

rates

fares generally average
cents

will

tightening squeeze
ing cost fronts.

cents

selves, with the lowest tariffs for
night schedules and slightly high¬
er

increases.

such

gains

margins

profit

are va¬

4.3

mile. There

per passenger

in

its lower fare

Currently,

average

riations

of

face

pensation averaging 18.66 cents to

coach contributes less

revenues

tariffs

the

Similarly, costs of gasoline
supplies have risen
sharply.
Technological progress in the
air ^transport industry has been

and

coach

air

some

sent the greater

in

in

done

a

for

counts

ac¬

1940.

and

gain of about 2,250%
in six years.
From less than 3%

represent

remarkable

a

rapidly increasing operating costs
on all fronts.
For example, aver¬
age airline wages and salaries in
1953 were up some 115.0% over

pas¬

estimated

were

up

It remains to be

buses.

market

province

dominant

of the rails and

1949

passenger

pro¬

than make inroads upon the

established

by

carriers.

Of course,

international airlines,
discussion will be devoted
primarily to the first category.

trunks

air travel

in

generated

ing offered' by 10 trunk

(3) Local service or Feeders.
interest

been

coach
traffic.
Initiated late in 1948 by
one
airline, air coach has since
broadened substantially, now be¬

in

(1)

The

largest gains

have

ket

there are three
major certificated airline groups:
know,

you

has

the

Travel

of the total domestic airline

Airline

As

The

Air

in

or

_

low
is

The

airlines

1939.

now

Gains

things, there

favorable

sides

two

The

all

most

the prime element in
sharp gains in volume rec¬
orded by the industry.
For 1954,
of the total gross revenues, reach¬

this

the

directly responsible.
As to price, air transportation

sidized.

inter-city passenger miles for the
railroads aggregated some 25 bil¬

_

of

fares have remained virtually un¬

by

1953

dustry during its earlier years, the
steady uptrend in airline travel

willing to assume normal risks.

and

a

aligned themselves against this measure apparently were
against it foFThe plain and simple reason that they were
strongly, even violently, against any reduction in tariffs

with American manufacturers.

earnings.

structure

fare

While this may not appear

impressive

as

as

nate for most domestic trunks and

other concessions which might make it easier for
foreign producers to enter our markets in competition

industry

passenger

over

has not
present. The airline group
has gone from one extreme to an¬
other
in
alternately enchanting
and disenchanting investment in¬
terest.
I hope the enchantment
popular

carried

airlines'

service first exceeded

man

is

This
always

the

on

This

today.

by

up

meeting

as

rail

Pullmans.

class

considerable

is

than twice

in

Support
There

road coach last year.
coach volume is more

first-class

contribution

constructive

country

Last year,

any

in

still

stand

has

vol¬

market

ume.

but

tendencies

we

meas¬

effect, the

has had to keep gaining traffic to

complishment for the air trans¬
port industry to provide vast im¬
provements at lower prices. This

Transportation
this

certificated

from 41

basically different if

In

industry.

It

fic

revenue

Against Tariff Reductions

for-

condition-

air fares today are substan¬
tially lower than those prevailing

Transportation Subcommittee re¬
port, of which the MATS study is

which

1

\

million

this

lar,

Air

scheme for

reducing tariff barriers, devised by the New
Dealers largely for the purpose of
avoiding a direct and
forthright facing of the issue by the people of this country,
was before Congress. It was to continue the
authority of
the President to take action which
always arouses all
sorts of
opposition when undertaken by Congress. The
measure
finally won in the House after both the Presi¬
dent and the
leadership of the Democratic party had been
obliged to exert their utmost influence in its behalf. But

to

answer

may be found in the narrow profit
margins which have plagued the

in

are

Dealism,

isms

$80.3

-

The

ing purchasing power of the dol¬

from first

possess

and

1954.

changed in absolute dollar terms.

New Dimensions in

began late in 1953 and extended
throughout the earlier months of 1954, when, on the sur¬
face at least, the prospect of some form of international
convertibility of currencies seemed better than for some
time. In Britain the Labor Party
evidently understood the
implications of some of these proposals and used them as
a
means of
embarrassing the government. While not a
great deal was always said about it directly, it is clear
enough that in other countries, too, including the United
States, the old conflict which came to the fore in London

which

estimated

an

However, adjusted to the chang¬

Continued

ficated

discussions

greater willingness on
our markets upon

a

competitive basis?

a

to consciousness in the long

arose

Cer¬

part to permit foreigners to enter

our

em¬

ployment law, and many other nations are committed to
the philosophy which dictated that measure in this coun¬
try. The inveterate habit of politicians in this country of
paying homage at frequent intervals to this measure and
the notions it embodies makes it clear enough that they

would be.

measure

no

for their ultimate

Employment Law

we

emasculation of the

or

relaxation of our restrictive tariff rates could
come of it. The question that
naturally would then arise
—in fact it has already arisen—is this: What of the other
measures and policies of the
Administration, which depend
tainly

Thursday, February 24, 1955

...

the
me,

disturbed

And,

by

while"my

industry may dis¬
I think the airlines

disturbed, too.

carriers

took

the

At first

view

that

from this first-class mail

"gravy"

additional
curred

are

$2,000

profit.

in

as

virtually little in

expenses

the

has been

process.

In

in¬

other

words, this business is regarded as

by-product and accorded treat-

*

Volume

181

Number 5406

.

.

•

The Commercial and Financial Chronicle

.

(945)

ment

on

out-of-pocket

an

basis.

But I remember air coach started
on

by-product

a

air

same

coach

basis.

the

Now

is

structure

fare

firmly entrenched and

be ad¬

can

In expanding their equipment
fleets, the industry has had to ob¬

considerable

tain

funds

to

Such

has been accom¬
through the issuance of

Then, too, as the first-class-byair
"experiment"
continues
to
demonstrate
its
effectiveness,
a

ligations.

equity securities and debt ob¬

new

been

past has moved in the regular six

banks.

cent

with

service

the

nonetheless

be di¬

may

non-priority

effective

but

service

air

of

with

debt

private

insurance

as

the

has

self-liquidating nature

a

placed

such

mail

Most

of

and

considerable volume which in the

to

programs.

financing

plished

air

capital

their

finance

justed only with considerable dif¬
ficulty.

verted

new

this

In

lenders

coupled

retained

earnings, equity or
positions have also been

net worth

that

strengthened

and

considerable

margins.

broadened

by

they

you

be certain
cognizant of

may

fully

are

of

pact

decision

any

they

may

make in selecting new equipment.
It would be most reassuring to an
onlooker to
with

the

see

which

the

thoroughness
men
in the

top

separate airlines have
the equipment problem.
As

result of close personal ob¬

a

servation, I
of

explored

them

tell
with

can

part

that

you

volume

of

the

higher paying

mail available to the airlines at

going rate of 45 cents

now

a

a

ton-

stop

the

worth position of about $182 mil¬
lion.
By Sept. 30, 1954, this had
about

mile.

Further,

what

is

to

Post Office to press for reductions
in the "regular" rates of 45 cents
a

at the 194*3 year-end, the
group of airlines had a net

ton-mile being

paid for prefer¬

If

properly priced, the firstclass-mail-by-air movement can
be most beneficial to

the airlines.

A rate of 30 to 35 cents

would

be

a

ton-mile

and

desirable

helpful.

profit margins.

|

Remember, there is consider¬
able leverage
in airline opera¬
A wide segment of operat¬
ing costs does not readily permit
material cutbacks in periods of
declining business.
Further, in
tions.

many

the

cases

measure

of

debt

relatively
large
prior
the operating revenues
industry. It is these factors

of the

which

showed

elements

of

exercise

major
airline

instability on
i. e., traffic declines

operations,
tending to
shrinkage.

magnify

earnings

conditions in¬

that

The

you

will, to the

("Barron's")
it

would

effect

net

transitions

which

have

been

has

these

of

to

been

major

place the

capital base of the industry on a
much higher plateau than at any
the past.

time in

This places the

much better position to
undertake any subsequent major
in

group

mature

and

a

expenditures with little,
recourse to more equity
financing.
ui
i_^.i

The

There is considerable discussion

perhaps

apprehension

some

investment

in

circles

to

as

the

place, extensive air¬
acquisitions are not likely

craft
to

first

at

occur

likely

indicate

that

jets,

other

and

an

ex¬

sources

turbo-props
be purchased by one or two

may

airlines

new

with

initial

deliveries

carriers

(This ex¬
cludes, of course, the $67 million
purchase by Capital of 60 British
Viscounts

with

12

scheduled

encourage

jet may be ordered for com¬
mercial transport operations. De¬

pure

for

such

orders

not

may

before

1960, with 1961 the
probable as the initial year

more

required.
It is important to bear in mind
that, initialy, jets will argely rep¬
supplement

a

aircraft

fleets.

traffic

flows

make

difficult

any

direction

and

ahead

potential

up

demands

subsidy

drains

involved

(1)

New

are

this

(2)

Additional

Southwest

Proceed¬

generally

flows through to net.
It may be argued that one rea¬

why operating costs squeeze
profit margins is due to heavy de¬

son

preciation charges. It is true that
depreciation
charges
have
in¬
creased, but they have remained

the

black cloud on

a

as

airlines' horizon, I regard

^his

most encouraging
development for the industry. It
is a positive manifestation of the
dynamic growth qualities of the
airlines. If the traffic, actual and
potential, were not present, there
prospect

as

would be

a

no

need for augmenting

fairly stable in relation to total
operating expenses. For exampls, existing equipment fleets and low¬
er
market prices would soon re¬
in 1947 the domestic trunks ac¬
cumulated

total

depreciation
and
ground

charges
of
flight
equipment of $42.3 million which

flect

dormant

a

or

even

declining

trend.

straight

jets can be eco¬
nomically adapted would indicate
that

these

recall

the time.
units

15

This would
the

as

with

cases

much

late

the

before

year

outside

an

the finan¬

make

represented 11.4% of total operat¬

wails

ing

community when the rail¬
roads during the 20s were issuing
series after series of equipment
trust notes to finance new freight

With the

fore

(Special

it,

there

be

may

LOS

to

reason

S.

believe that the Civil Aeronautics
Board will act with considerate
wisdom

initial

to

purchases.

in

ceedings.
the

Emanuel

business.
Chernow

Gang,

Rubin

and

Vice-

Chernow,

these

orderly

to

route

new

It has within its

pro¬

So
of

much

the

for

the broad

and

joined the

Co.

Chronicle)

of

Los

Merl
staff

K.
of

Deena

Coombs

Angeles, Inc., 602

West Sixth Street.

air

of

Government

factors

The Financial

power

development

the

&

to

ANGELES, Calif.—Etienne

D'Artois

have

Butterfield Adds Two
(Special

while

to

The

JACKSON,

maintaining financial stability of
the industry.

Conklin

and

Financial

Mich.
Len

E.

Chronicle)

—

Clair

Dietz

In 1953, this same

expenses.

showed

group

total

depreciation

of $87.8 million but it represented

only 11.1% of total expenses.

,1954,

this

items

estimated at around $96

are

million,

For
depreciation

group's

or

less than 11% of total

Nevertheless,

there

be

can.

no

doubt that airline operations have
reached
the
stage where these

heavy "non-cash" deductions

gen¬

erated by depreciation and related
charges do provide a measure of

inherent strength.
The self-generation of funds has
reached

develop

into

tions and

.

measures

formidable

to

assume

the

pact on
nancial

such

a

industry's

as

to

propor¬

major im¬
future fi¬

Equipment Acquisitions

Many of the major airlines

their

are

equip¬
ment
acquisition programs this
year. Depreciation charges should
therefore rise higher than the 1954
current

experiences,
thus
further
menting "cash-flows" above

aug¬

and

beyond reported earnings.
The

ciation

condition

of

tial

airlines

the substan¬
equipment
accomplished in recent
For example, the domestic

additions

to

up

their

accounts
years.

trunklines
assets

car

declining inventory of
freight cars and their, cumulative
aging, you see no widespread de¬

from

increased

$387

a

the railroads for

mand from

field &

Trust

Co., Jackson City Bank &

Company Building.

The Near-term Aspect

For the

near

term,

we

may

William W. Cumberland

ex¬

pect airline earnings to look very
good. With traffic in many in¬
stances
of

a

running

year ago

first

30%

some

and

W.

Cumberland,

viser to the State

ahead

earnings for the

quarter

William

>

cur¬

partner

a

probably

&

mann

for the first half will look good in

in

Co.,

ad¬

Department, and

Ladenburg,
New

York

Thal-

for

answer.
investor who

is

apprehen¬
sive of the expansion lying ahead
for

the

airlines

industry, the generation of inter¬
funds, plus supplementary in¬

should

take

his

elsewhere for some liqui¬
dating
enterprise.
Perhaps
he
should buy into a coal mine. With
patience and good fortune he may
in time receive depletion returns
and take comfort in the thought
that his assets are safely imbedded
in the ground.
Airline
management
today
would not be going ahead with

their

million

any new

total

extensive capital expan¬
unless there were a

sion programs

basis

solid
this

new

for

traffic

equipment.

supporting

Nor

would

to buy any new
aircraft unless it incorporated the
latest technological advances and
be

likely

to

teams

which

airline

management

have done

a

superb

year-end to more than $815
million at Sept. 30, 1954.

present preeminent position will
make the decisions on new equip¬




stand

out

City,

passed away Feb. 20 at the
age of

even

better in comparison with the
very

65

following

a

long illness.

bulk

transport

of

new

any

acquisitions

Protectionism

vs

Self-Help

"The total estimated

The

Threat of Duplication of
Routes

What

can

serious

to

which

prove to

airline

has

not

received

the

deserves, is the threat
widespread duplication of ex¬
isting route patterns.
the

present time, there

are

four

major
route
proceedings
coming down the track in the do¬
mestic field.
to

(This is in addition

pending

proceedings
international cases.)
Any

authorizations

route

new

covering

coming out of these four domestic
cases

are

petition

bound to

in

the

intensify com¬
industry.
It is

highly conceivable that a farreaching award may importantly
shift traditional relationships and
and
standings among the major
carriers.
Not
cated

only are existing certifi¬
airlines
battling for new

routes among

assistance will

themselves, but the

economic

present
the

aid

in

estimated

way,

actual

that

we can

best

serve

the

cause

of the free world

by helping its
members
to
help themselves
through selective development
George Humphrey
programs in which private in¬
vestment
can
play a major
role."
Secretary of the Treasury, George M.
Humphrey.
—

We

certainly need to begin at least to get out of
of trying to buy world peace and
friendship; but this policy of "helping them to help
tion—whether

their

the

while

this Administration's conclusion

themselves" has

group, if they had

in

So,

over-all

convenience
new

as

spending for economic aid in¬
creases
slightly in Asia, the
over-all foreign
economic aid
program is still decreasing.
"This is directly in line with

respectability and protection that
goes with a certificate of public

This

Asia

fiscal year.

this

necessity.

$585,000,000

compared with about $500,000,000 to be spent for

as a group is faced with
determined drive by a few nonscheduled
carriers
to
gain the

and

be about

more

industry,

attention it

At

expenditures in 1956, not
including obligations for the future, for all Asian
economic

be far

the

of

tions.

job in bringing the industry to its

1946

the

jet

a

the

at

handle

industry

same

and

in the foreseeable future.

possessed qualities of improved
efficiency and economy of opera¬
The

themselves

debt financing of
a
selfliquidating nature should be able

and

your

An

base of the

nal

new

equipment.
Why? Look to the
longer-term trend of carloadings

they

heavy depre¬

write-offs for the

obviously points

The broader capital

money

development.

completing

despair from

cial

spite

expenses.

now

of

P.

have

joined the staff of H. H. Butter-

aspects

influencing the air

transport industry.

over¬

likely

Israel

Two With Coombs

experiences of certain

over-certifications in the past be¬

rent

carriers

securities

a

are

terim

purchases.
The traffic was
there, they needed the equipment;
the money was forthcoming. De¬

such

obstacle to

an

the

for

in

Secretary-Treasurer.

final

any

ing.

major

acquire. Even
price of around $5
million per unit, the attendant fi¬
nancing requirement would not
at

Bowery, New York City, to

Officers

proceedings President;
It may be President;

other

further behind.

this

at 44

determinations may be forthcom¬

about

any

constant

engage

trunk carrier would

come

of

mean

most

because

group,

They are worth watching.
•Examiners' reports are now be¬
ing awaited in the first two named

transports

could be held within about 15%
of the total number of four-engine
conventional aircraft in service at

any

reading

jet

new

be too serious

don't

I

which

with all

Chernow, Gang & Chernow,
Inc., has been formed with offices

viewing this

revenues

as

particularly irk

transport

ing.

additional

to

segments

the
sep¬

Formed in New York
City

(4) New York-Florida

cost

route

But,

and

to

Chernow, Gang & Chernow

to

patterns

and

air

is

which

the

among

fast-moving events,
vigilance is required.

Northeast Service Case.

reached, the major portion of all

rapidly during periods of
rising traffic volume.
In other
words, once a breakeven point is

opportunities

investments,
the

un¬

interesting profitable

arate companies.

transportation thus providing ade¬
quate service to the public at least

leverage
factor,
earnings to mount

afford

investment

Service to Denver Case.

(3)

plane-for-plane
replacement
of
present type aircraft.
Schedule

cause

con¬

Case.

during the next 10 years. This ap¬
pears
entirely raau^ible.
How¬
ever,
instead or despairing and

the

in

equipment
demands five or six years hence.
Certainly, any orders for the
turbo-jet will not necessitate a

the

unknowns.. It

of

very

herent

however,

precise

and

discriminating

York-Chicago Service

projection

of

in

uncertainty/however,

will

the

equipment
modernization
uro¬
grams. One authoritative estimate
places the amount of such expen¬
ditures at upwards of $1V2 billion

same

higher
earnings

a

and

of

follows:

as

stability

certainties

seriously
undermine the financial stability
of the industry.
The four major domestic route
cases

establishing

of

industry

in¬

on

offset

because of its character
will
tinue to contain a number

also

can

and
may
the present
gains.

surpassing anything seen
past.
The air transport

only

for

from wage
increase

as

exist

and

plateau

the

route operations will not

its

upside.

Despite the

air

defeat

of

work

the

on

higher operating

problems facing the
industry, given a healthy regula¬
tory climate, the airlines are
cap¬
able of
overcoming the obstacles

mergers

new

effects

such

demands

extensive extensions of
routes will move in the op¬

creased

existing

Strong
growth
pliable nature of

the

and

to

opportunity to

pressures in

some

or

Government but

for

delivery by the end of this year.)
Perhaps before 1955 is over, a

an

costs

objectives designed to be obtained
by mergers.
Any indiscriminate awarding of

at

least three years away.

trends

pure

but will most

staggered over
period.
Industry

tended

quisitions of new aircraft, turboor

time

one

be

resent

lines

to

record

set

the

capital demands by the air¬
arising from the likely ac¬

new

tions

airlines

But

In

when such equipment may be re¬
ceived and the bulk of payments

Capital Demands

the

of

structure, and also has brought air
service throughout
the country.
Secondly,
the
Administration,
through the CAB and its Air Co¬

new

start

New

practices

beneficial

course of any
widespread
equipment buying is worth
exploring in more specific terms.

liveries

any.

petitive

stabilize

somewhat

at
present, thus peimitting leverage in airline opera¬

com¬

have led to the abnormal low fare

posite
j

capital

and

deliberate considera¬

tion.

if

props

These very

$359.4

theoretically possible to have pur¬
chased all of the equity issues of
the U. S. air transport industry
for less than $35 million.

on

sometimes

this, if

1938

18,

imposes

charges

around

statement made in very first arti¬
cle on the airlines published on

The way it is

being handled now
merely exerts another squeeze on

to

place, the existing intensive

new

new

Contrast

July

ential air mail?

doubled

million.

policy

the first

ernment. Certifications of

the

in¬

reports of
comparable pe¬
riods of last year. There
is a tend¬
ency for some costs to

among the airlines so that there
will be less of a drain on the Gov¬

feel confident that it has received

For

In

appear.

on

dividually, to $50 to $100 million,
or more, in
commitments, you may

first-class

cent

poor

ordinating Committee, is strongly

same

three

Definite contradictions in

immediately

easily. So, when it comes to new
equipment programs running, in¬

stance,

the

high-density

serve

very

buck

a

only

traffic points.

none

stamp, obviously, this will reduce

taking

would

their responsibilities and the im¬

companies and

process,

And

ment.

3J

business

some

we

strong protectionist opposi¬

realize it

or

not.

34

(946)

^h^Qtmntereial

r~*

Continued

from

after that time all

quer

6

page

the

rapidly

and
the

split

Social

Capitalism and Militarism
equated their power witn tneex-

u

their

of

War

eyed

l812,

pf

p
Wair l

Canada

in

tne

Philippines

tne

in

aid,

occupy, rehabilitate;

to

Their

enemies.

of

ence

advise

must

me

war.

protect.

mmiary,

and

safety of the nation.
holy wars.
America
be a saviour.
We

g y'_

.

col

lf,
lv5n„

curity."
It was problemon
a
grand scale.

g

Politicians have found war help-

externalizing their internal
troubles.
In the 1860's Napoleon
xul

in

Ill

afraid

was

position.

military
military

dramatic

rising

un-

developing opfelt he needed a
a

He

|

his

of

popularity and

triumph.
triumph.

So
So

taking advantage of the Civil War

Maximilian

starred

who

have

toward

emperor,

the

by

went to

war.

the

Bolshevists
revolution

iry again

struck

at

miscarried

ah

may

1fl10

Lt hLnm'p

Germany,

scoffed

National

capitulated

to

_

Tzar sssrvss
qincp

that

A'len,

is exaggeration

and waste, and the

smoke-screens of

out

donaj[

"na-

the

military

^be

.

.

recently

2°^. Dakota
"The

socialism.

gociai

under

Sip lNew Deaf
th7 Np«; Jjeai,
New Deal
the

militarv

lilt;

the

of

in

istration

Roosevelt

the

war,

power

soon

came

Labor

Party

n/r——i j

socialist

a

government.

Tfv.^^

"Popular

Eventually

socialism

Deal

the

to

in

the

extensive

more

eclby

ucicuat

xa

U.

S.

"demo-

There wpre 9

u,

is

^Ve?rvfl'ition
y.

ployed.

The

colossal

enterpris

vcr4m0re M63
i! ? if lnnlfpH
.; • • • Kow at last it looked
4

if

as

the

Deal

New

market eco

through.

nards
It had played its cards,

and

no

had

new

offer.

to

ones

The

country
was
manifestly
wearying of economic experiment,

The

Salvationists

social

los-

were

ing their zeal for
tag1 their'zeaT for

legislating "prosprosmmNow, like Roosevelt him-

perity.

self, ^imth
they had become tense with
excitement

about

affairs,

foreign

and had half forgotten the dismal,
unsolved problems on the domestic

front.

perity

Yet the secret of pros-

still

remained

unsolved."

Bureaucrats:
Bureaucrats:

War

the

is

business of generals and admirals.
It is their very life.
Campaigns
are

chapters

tie

ribbons

bols

of

under

Blue

in

their diaries.
medals

and

their

fire.

War

Bat-

are

baptism

sym-

and

games

erals

and

admirals

bureaucrats
War

in

breaks

a

function

armed

forces.

and

^

,

undergo
war?
Was

during

inefficiency,

waste,

to

eimniv

simply

are

and

wartime

Qur

.,n.nnmv

and ,e,c
a economy
T

war

the

corrup-

bureaucracy

.

j

xu-

the

inevitable

mo-

the

of

size

of

the

The

trade among nations.
among nations

---

entrepeneurs

and

:

forcinp-

e

the

lieutenant-

eral^'Th^^m^andore'b^ccfmes
en
nn
an

Oil

ndmiral
aamirai.

Marshal
JViarsnai

Fnnh
rocn

cairl
said
said

the subject of I3nk 3nd bsttle

iu^;°?J0Ll

°

-

---

.

forcing'

Fifty Billion Dollars, 1951,




p.

260.

them

domeqtiP

ms

never

tn

the

caving

^nflow
m

^nd

biggest

^ould

'

borrowed

buver

have

Socialists*

k°j

The

on

the

been

in

the

obtain all it wanted "u

t

Speaking

owcwhsw.

u^can.iu&

of

a
^

«x

coming European War in which
"15
~~

20

or

million

figure

actual

armed

men

^>>

/,4v>q

another," (the
another,
was
10
million)

one

Fricdrich Engels asserted to

nis

?Q1/aw"^aaa"}unistS in ..1 e
i»tn century.

#

•

»

.

"War must either bring the lmmediate

victory of socialism,

it
must upset the old order of things

cianst
cialist

—

revolution,

rfom

or

uiougu
though

10 Tax

and

presumably still upheld Doe-

4„
hate
a

Americans,

■_

they

war

Unquestionably the Communists

do

to

mean

demanded.

Lxcitment

There are victory pafades, mobilization drives, and
inspiring speeches. But soon come
the casualty lists and news or military defeats. The promised snort
war '
turns to vears of blood-let—
war
tar"s ta years

The glamour

is gone and

the passion spent but
luni

the

conquer

world,

have been imperialists and *aken land
by force—from
the Indians' from the
Mexicans,
fr0m the
tr0m tne Spanish.
Intent is not
intent
we

rul3s high.

Jing.

at an

it is too late

uauu.

.
.
.
It is easy u ■ painful to predict
but

tragic end for our bi-partisan
policy of military intervention.

haye>

The Communists do not

aTld

probabiy neVer will,
abiiity to take us from withThey do have, however, the

tbe
out

abiiity
rp^

to

take

means

communists at
ernment

and

x

—

from

us

must

we

our

within.

root

out

vitals

defense plants.

—x

—x

xi—

n*

the

in gov-

And

±_x

must root out the Marxist
dogwhich
have
muddied
our

we

^—j

mas

thinking and impeded

our

econ-

nmv

omv.

y*
Our

a

have

military

spread

interventionists
armed

our

forces

so

tional

not

Tr

of

Bank

to

to

in

sell

Dr

trade

ChasJ

'the

its

Beniamin

warned

in

Na-

August

bonai Bank warnedI in August
the

high-protective
money

policy in

existing world imbalance

shail ultimately

pay

with

gested investment market

panied
our

by

a

we

con-

accom-

sharp falling-off of

a

export

81 °

trade.""
trade."1*

military spend-

creates

neither

consumer

capital goodg

Qr

cot

1937,

p.

263.

Outlook, September 1952.
Action

(New

University Press, 1949),

pp.

Haven:

-in

16 The

The Geneva Conference

<mn

Workers

wuivo

^ c"mPeUiving quf ters'.V(

Lobbies have made military

spending a bigger pork barrel than
the traditional post office and rivers and harbors bills- Last year
Powerful politicians angled to get

de¬
™ a *•■

»•«■—<—
feat for
America.

toward

Europe

Moscow.

international

Unbelieveable

Bertram V. Jones Now With

our

Scherck, Richter Co.

for nought

gone

"Collective security" is an empty
v
-

didn/t

".1Tdld"V-W-

-

(Special to the financial chronicle)

--

ST LOUIS Mo. - Bertram V.

yor^ jf Korea.

^

v

a"sociated

v

Wl11 Fabiamzed England, her
leaders making good-will tours to
the Sovlet Union and Red China,
fight the Communists?
Will
Franco with 96 Communist deputies in her Chamber fight the

Scherck, Richter Company, 320
North Fourth Street, members of
the Midwest Stock Exchange. Mr.
Jones, who has recently been with
Semple, Jacobs & Co., Inc., has
been in the investment business

Communists?

for many

him

:

Will

+

Itel

a

wars

world

voting

lia_

LVVU wu
Dimy^^two world wars, voting

?!

years.

Two With

Communists in the 1951 elec-

^ons' flght the Communists? Will

Slay ton Co.

(Special to The Financial Chronicle)

Communist Yugoslavia fight the
ST. LOUIS, Mo.—James C. GibCommunists?
Will
Germany, L^^n^FdwarH L. McGrath have
1D"
ons and Edward
crushed in two wars, her cities w'
^ ^ ^4^°^ h?Ve
leveled by us, subjected to
tavtaelbyus.subjeeted "to uncon- oeen added to the staff of Slayton
been
ditional
surrender
and
ex
post & Company, Inc., 408 Olive Street.
.

k

p-

innfo inure

fact0 iaws at Mnrpmhprg
at Nuremberg

Tv,n

A AQ

rM;xr«

C4,.««4

fight for
fight

7?

Joins Wachob-Bender

"

...

Can

we

defeat the Communists?

In 1953 after

tour, General Eisenhower
lour> general .cjiseiuiuwer

although we were in

decided
ueciueu

hot

a

But now, apparently,

would

ing

hostilities.

renew

could

we

mimists,

defeat

could

a

Com-

the

Would

idea

we

is
is

Neb.

with
wim

—

Charles

not

F.

Wachob-Bender
»»auwu-ucuuci

St.

Bache Adds to Staff

we

of communism so that it would not

pop Up elsewhere?

Heider
aeiuei

(Special to The Financial ChronIcee)

Assum-

the

kill

we

OMAHA,

in Corp., 212 South Seventeenth

war

av°auaus alittie. AVe^negtaatari
truce.

(Special to the financial chronicle)

personal inspection

a

•

CINCINNATI, Ohio —Philip J.
McMahon has been added to the
staff of Bache & Co., Dixie Terminal Building.

a single giant aircraft carrier built communize ourselves?
4v,p;r
v>nmo
Harrv Bvrd
vaff!
°ur holy wars of the 20th Cen"
fh
M0„y
VT"'
iv,.-L,. 5 turY bave invariably failed. We

,;n

14, 1952.

veers

magnanimity by

g0vernment bas

Freeman, July

was

ctofae

Lllc

_nrI
and
and

i

x^two
p

Drvdoek
Rrydock

Newg> Va
rickson

Co.
c0>

Shipbuilding
at
Newport
at
Newport

Senator Robert Hend-

(rN. J.) represented in

effect the New York Shipbuilding
Co. at Camden, N. J.
Senator
Leverett

Saltonstall

personally
with

the

Bethlehem

took

up

President
Steel

Mass. would

Co.

(R.,

Mass.)

the

can

can

so

of

that

the

Quincy,

get the award."is

(5) People; pe0ple want

peace,

Americans voted for "peace"

Wncfprn
Western

preserve

solemn

TTpmisnhere
Hemisphere

freedom.

our

lesson

of

than

more

n0

we

our

can

prevent

is

the

clear,
We

aggression

prevent sin.

economy

is based

r,n\Tf"nvn\jati

CINCINNATI, fin-in rniffn-ra a
CINCINNATI, Ohio—Clifford A.
Ohio—Cliiford A.

and
and

But

Korea

cannot defend the world.

can

matter

(Special to The Financial Chronicle)

defend auicuuj, auu possibly
America, and jjuoDiuij
ueieuu

^he

we

Joins Westheimer Co.

on

war,

Worthing
nut

to

our

national

application

security

become

affiliated

members of

and

New

the Cin-

York qtnrir

Fx

cinnati ana xview xorK btock lx
cbanSesWith First Cleveland

through

of external

Street,

pinnati

for
according to General MacArthur* "Talk of imminent threat

the

has

with Westheimer & Co., 326 Wal-

(Special to The Financial, Chronicle)

force

can-

CLEVELAND,

O.—Mrs.

Kath-

Yale

821-822.

UU1C
is pure nonsense.
Indeed, it xuj
is
Aiiuvvu,
fbp ,TPriPrai
a
natt.ern of
t of tbe generai pattern of

ryn W. Moore has joined the staff

misguided policy that

put uu.
put ori

by Altrea vagts, A History
'".Alfred Vasts, /! niscorj-

Militarism,

Do

we have to go to war
to get
back our captured airmen?
Our
tradition has always been to
give
at least de facto
recognition. Said
President Monroe in his famous

(°r> more likely, is arranged) and
J'
the cry for^ revenge,
for
revenge,
becomes
becomes enougb>
enough.
deafening.
Ine people go to tne

Kxr

of

15

•

.

•

.

•

.

a

" ^ W'U SUrdy

9 Quoted
of

sion

warfare-^by drear?-

S?.nnot eat guns and tenfe make
guns

by virtue of the

now

'taxeg

f
the

v,

of tbls
for waf-

.

Autarchv is
Autarchy is

not

markets

Anderson

wuuui

.

°4®rdropped
government

—11 Human

8

them

'zb7os'di0aec^s^^

farmers

bigger the
forces, the higher the rank, from head to foot and leave such
promotion, pay, distinction, heaps of ruins behind that the old
and command are generally only
capitalist society will be more imoccasioned by the incidence of possible than ever, and the someans

capitalism

---

Thus

War

op-

against its cit-

armed

war.

is

governme^nit .had ran;ed all'the
juuuuies
Lobbies pump for high military
iui
mSu imuMU,
funds needed for the conduct 01
funds needed for the conduct of PVnendit,irres.
Militarv
expenditures.
Military outlavs.
outlays,
war by taxing the citizens and by tbey argue> maLe for
prosperity.
borrowing from them, everybody Unemployment goes
down; factorwould have been forced to cut ieg get orders> Tbe economic
rub,
d<3wn
consumption drastically, however, is that
The

r.

Communists

c

Pjatices international diol
labor and harmonious

mm-

not require the establishment of
controls and priorities
If the

It

faire

1 ./
■bor, tms
Com- tariff and cheap
v"""1
tariff and

npfiprarvv

necessary^
*ed Ludwig
n Mises.
(The realization of providing
war materiel in World War II) did

will slaughter
will

uniform.

iaissez

xt«n..

nation

our

socialism

are

notony and lethargy of peacetime.
And,
importantly,
war
means
swift promotion.
According to
seniority and manning tables, rank
is

sbould

posed
vision

trappingg of a <<war econ_
0my" suit the interventionists fine.

between

it
interesting but nothing like the
real thing.
In peacetime genIn
gen¬

R.

rationing and exchange essentially economic
exchange
seized
industries and the autarch
stale

cations,

valor

Army and Green Army

uoii.mnj

self-sufficiency.

would have turned toward pro- goodg

(Italics added.)
C2)
(2)

ratinnvncf

controls

really

was

S.

S.

and

other

of work relief was becom ng every

111

tional

Oo4inne

une

the

rjarfias"" ssaLWisarsr
War economics
not

economics."

Price contiois, pnonhes and anocontrols, priorities
ailo

his

to

auuioimm

bloated bureaucracies, and all the
milhon

/2

never

is

Despite the babble of the inter- thinly around the world that we
ventionists, the wreckage of that are left without the power of
fascist policy lies strewn about us.
Of decision astc) where or whom we
Haly the 60 nations in the UN, the U. S. should fight, or if we should fight
of
the
in the furnished
95%
of
the_ outside ft -i!. Let us de endJheAmeroutside at alL Let us defend the Amertroops in Korea.
Our European lcas*
Let capitalism and freedom
^°(°PS ln
Defense Army was abandoned by ke our bastions.

.

di-

in

land

iu

accelerated_

Vesterdav"Yesterday

'Since
Since

sons

than

soddtenT^dlnd "scan"-

craHc"

reauests

economics at all but subterfuge for

Admin-

'30s

late

their

among our political leaders almost
a
greater fear of peace
their fear of war. ie

^favi/?ust™h-aandCwZeaservices

.

lemma

fathers told

destructitenesrof

the entire world adopted socialism
varjous forms, from the mild

com-

"'^ubTabou!

word

socialist

the

won

Ramsay MacDonald. France

Front»

ventures

anyone

^

underWent

New

moment

After

England

t->

under

had

Lewis

the

of

wrote
w

nationalist

spit at the "Hunnish swine." Ger-

Americans hate Communists.

blueprint for

Democrats

the

ji

.

the

was

Germany.

their way, they would fortify the
moon "
Senator Francis Case of
c„„.u

eild

later

and "impairment
miRtary efficiency" whenever
tbeir
their
appr0priations are endanappropriations
t
antnn
ic
gered
Lord Acton is rpniitpd to
reputed to
gaidr ««if

"Go

war,

war>s

security"

haye

smiled:

heirs."13

cialism/> which although never
fuby
executed
because
of
the

mRRary bureaucracy is no except-on
rpbe mihtary are prone to
tbr0w

He

your

we are

Germany introduced me
the
Hindenburg Plan of full "war soRindenburg

of bureaucracy

insure

would

unfriendly critic of

not

a

get into the

Frederick

people give way to
passions.
Frenchmen

Morgenthau Planor the

Engels and Bebel were prophetic. During the closing stages of
the

A characteristic

him.

at

ahead;

taking!

^ aid tQ the enemy „10

third term."8

the flag.

to

Moreover,

com-

renders

^urope' wmcn was ^opiea

by
Lenin's

extremes of
"L .L. d^e ir rLplv that mcialism in Germany aL
^ is in some way giving comfort f^Xmuntat'sSsm
"ft
he
and communist socialism

a

"insults"

of

early stage of the wars which have
S(? ung agitated that quarter of the
gl°be> neverth<dess remains the
S3me' W lch is to c°nsider the
90vernme^ de facto as the legiti6 governments Did our air!£en 7e legitimate business in
the declared Korean War?

1917

party in Gernlootinnc
a
many after the 1912 elections.
.,
', .I
so
Why did Roosevelt become so
Party, the largest

wL' hrwafeaser tS

for

illusionary
foundation
plete
unreliability
and

sallies ^7 t7 Tathe77"7d7

in

a

xu„

retribution

want

a sense of
seeming prosperity for the moment, it rests on an

probably tell their
forget the

exhaustion

to

by the sharp criticism
of the Marxist Social Democratic
war

ft

or-

ganizations

man

Tear,

economy may pro-

yC(U

t Clausewitz October Revolution.

41P

Veteran

an

bied

proof of Spanhonor is at
gtake,
Revenge, semper fidelis!
Look at their islands, ours for the

impelled

further

been

ill-

Wilhelm

Kaiser

Mexicans.
well

as

executed

later

was

in

die

installed

and

Mexico

intervened

he

America

in

Russia

jobs with overtime.

com-

of

duce

foreign competithereby promote autarchy
war.
People are attracted by the:
"prosperity" they
believe war brings. Farmers want
high prices.
Workers want fat

which breeds

say

guiR?

w^e
de

for principles
"four
freedoms,

would

propaganda,

other opportunity ripened. Russia,

Man

were

ing

revolution

incessant

While such

War is the continuation, of
In Germany Bebel, leader of the up of Germany at Potsdam Ital
diplomacy by other means'? Of Social Democratic Party, gratui-Mans hate Yugoslav^ Cgoslavs
course, the Spanish sunk the USS tously warned the Kaiser and his hate Italians Arabs hate Isreali
Maine. Is it important that they war ]ords that war would further Israeli, hate Arabs Pakistani hate
ey
They expressed sympathy ^and a naval the cause of socialism.
They Indians, Indians hate ^Pakistani
jnC}Ujry showed no

Military expansion satisfies the
of politicians.
The World
Wars
and Korea
did not pose
threats to the immediate health
ego

to

tab1?-

The

Thursday, February 24, 1955

.

against

the- tion amd

the

Engels.

by

The

Wouia

Land

mat®

down

Japan,

and to bring

der)-

—

vs.

.

.

But people demand "pro-

lection"

Plekhanov—

home.

mili-

to • democra- course have a military bias. The
the blessings of battlefield is a better place for
industrialization (on a statist or- sett ing problems than the diploand

tize

>1; War IT

The policy was soon tried. In 1905
when
Russia
was
at
war
with

intellion

1903

Lenin

under

when

mence

the
mjiitary
plans against all

prepare
'

&P

laid

socialist

ureaucratg>

units

Land

laurels

lines

hoped for."9
'

cu

tne

Mexican War, the West indies ana
the

the

c

the Bolshevists set up a policy for
the conquest of Russia along the

had
they

generals
earned

Calif°rnia

Menshevists

World

of

Ameripang we're

^

w

Am

empires.

imperialists

e

end

the

at

pvnerience

in

under

m

spoils of warr Alexander, Caesaj\
George- III,
Napoleon
Hitler

-

in" the Russian

Democrats

Bolshevists

•

didatesin World War I and World

more

thorough^^?

After

tent

and-Financial Chronicle

I

IJ idem.
14 Quoted ^ Peter Molyneaux, „Trade
by
Trade
Policy & World Peace,
The Annals, July

taldem.^

1937.
)37;
15 Wall

street

Journal, May 24, 19S4.

"

L^htaWaXe"
0my which Was bred
fici'ally
"ficisllv

hysteria

our

country

_

induced
induced

and

-----

in

an

artl-

PSVChOSis of
psychosis of

mrrtured

upon

W3T
war

an

First

Cleveland

Corporation,

National City East Sixth

Building,
Nati°nal CU.y East Stath Building
,

^^^l^bers

Exchange.

r

Ol

..

the

,

MluWCSt

StOCxC

Volume 181

Number 5406

.

.

The Commercial and Financial Chronicle

.

(947)

35

'

i

The following statistical tabulations

Indications o1 Current

latest week

Business Activity

week
Latest

AMERICAN

IRON

AND

STEEL

Indicated steel operations
Equivalent to—
Steel ingots

AMERICAN
Cruae

and

Gasoline
,

73.6

§2,153,000

*2,150,000

2,051,000

1,756,000

fuel

,

ASSOCIATION

(bbls.)

of?"".
Feb. 11

6,719,350

freight loaded

Revenue

(in

6,321.700

117,384,000

7,418,000

7,370,000

24,203,000

24,784,000

23,834,000

2,608,000

2,707,000

12,539,000

OF

Year

Month

Ago

MINES):

primary aluminum in the U. S.

tons)—Month

of

December-

RAILWAY

CAR

121,252

110,291

*27,529

39,317

2,008

2,173

4,944

$272,708,000

$285,284,000

$265,768,000

182,254,000

157,258,000

9,963,000

10,599,000

292,542,000

290,209,000

62,257,000

16,572,000

end of Dec.

21,144

10,315,000

(short tons)

127,035

187,182,000

aluminum

16,800,000

44,532,000

INSTITUTE—

Feti.

at

Month

BANKERS'

10,636,000

8,663,000

8,452,000

8,737,000

8,499,000

174,203,000

171,331,000

162,198,000

174,017,000

STANDING

of

21,438,000

23,200,000

27,677,000

♦81,815,000

100,111,000

73,257,000

46,689,000

♦47,530,000

50,566,000

BANK

31:

45,921,000

„

Exports
Domestic

640,735

644,940

623,706

Dollar

cars)—Fi$0li2

of

(no.

643,859

621,788

625,133

597,676

603,350

shipments-

,.

Eased

exchange

^

on
goods stored
foreign countries

ENGINEERING:-

—

RESERVE

of Jan.

19,654,000

76,158,000

Fhb«J2

from connections

FEDERAL

—

OUT¬

Domestic warehouse credits—

cars)

CONSTRUCTION

ACCEPTANCES

OF NEW YORK—As

11

delivered

cars

DOLLAR

Imports

RAILROADS:

(number

of January:
domestic freight

New

and

„

shipped

between

:

89,908,0,00

88,591,000

45,537,000

$869,227,000

$873,101,000

$585,951,000

$2,761

-

$2,985

$2,444

NEWS-RECORD:
Total

U.

Fbt
F$1

construction

S.

Private

construction

(U.

152,424,000

163,839,000

96,392,000

63,694,000

146,509,000

93,312,000

53,300,000

42,901,000

119,801,000

83,175,000

Feb. 17

48,505,000

20,793,000

26,708,000

10,137,000

4,795,000

Febp..l2

8,690,000

8,700,000

8,680,000

7,595,000

654,000

609,000

552,000

595,000

—

BUREAU

S.

SALES

SYSTEM—1947-49

BUILDING

AVERAGE

=

Electric
FAILURES

(COMMERCIAL

and

100

2

'

91

♦86-

99

9,981,000

Nonresidential

91

8,551,000

Pig

steel

iron

(per

INDUSTRIAL)

—

Scrap steel
METAL

Electrolytic

(E.

265

4.797c

4.797c

Feb.15

Lead

$56.59

$56.59

$56.59

Lead

(St.

Zinc

York)

(East

Feb.15

$36.33

.

St.

S.

$34.50

$25.33

15

16

27

28

26

24

25

20

construction

32.300c

29.075c

Telephone

86.500c

85.250c

Other

15.000c

15.000c

15.000c

13.000c

14.800c

14.800c

14.800c

12.800c

11.500c

11.500c

11.500c

9.250c

99.01

AVERAGES:

if*
97.78

Aaa

Feb. 22

113.31

114.46

Aa

Feb* 22

110.88

111.07

111.81

Feb. 22

109.97

110.34

Feb. 22

108.88

104.48

104.66

104.83

102.63

Fete 22
Feb. 22
Feb. 22

107.80

107.80

108.52

106.92

110.15

110.34

110.88

109.24

110.70

110.88

111.44

111.07

_

Group
Group

Group

Bonds

Feb. 22

2.75

2.71

2.66

Feb. 22

corporate

3.20

3.19

3.15

other

2.57
3.22

ERAL

2.99

2.93

2.93

As

3.12

3.11

3.07
3.15

3.23

3.59

3.01

Feb. 22

3.48

3.47

3.46

Feb. 22
Feb. 22
Feb. 22

3.29

,;*W«3.29

3.25

Railroad
Public

Group

Utilities

Industrials
MOODY'S

—

Group

3.15

3.12

3.21

3.13

'3.12

3.09

(tons)

Production

(tons)

Percentage

of

;——„——.—

— —

Unfilled

activity

orders

——

at end of

(tons)

period—

404.0

f"r~ 407.8

414.4

424.0

Feb.
—Feb.
-—Feb.
Feb.

OIL, PAINT AND DRUG REPORTER PRICE INDEX—
1949 AVERAGE = 100

Crude

350,995

241,055

12
12
12

In

216,205

261,128

259,402

355,794

—

SPECIALISTS

AND

DEALERS

LOT

SECURITIES

95

94

93

91

450,660

388,392

of

355,213

107.27

106.54

Dollar value

106.47

107.17

1.700,303

1,675,172

.-——Feb.

sales—

50

10

10

9

$733,000

$628,000

YORK—

of

month

January:

96,113

of

2,000

pounds)

stocks at end of period

$86,644,582
1,432,752

Feb.

84,546
111,869

119,626

77,091

47,108

108,187

♦$74.30

$70.92

(tons

pounds)

2,000

♦97,733

$73.97

—

133,523

45,982

pounds)—

123,840

113,949

pounds)-.

2,000

EARNINGS

HOURS—WEEKLY

AND

ESTIMATE —U.

DEPT.

S.

OF

80.16

1,946,677

963,701

$90,292,919

$99,201,009

$44,463,075

1,433,599

>■ 2,163,641

888,177

Customers'

short

other sales———Feb.

1,424,836

1,422,637

2,154,220

All

$67,746,797

$69,607,364

$106,547,091

$38,117,821

sales
Feb.
——.—,—i-————————Feb.
sales
——■——-——-—Feb.

356,670

700,450

35~6~670

700,450

615,250

487,680

350,560

—

,

40.2

*40.6

39.4

41.1

40.1

39.2

*39.7

38.5

$1.84

$1.83

$1.80

257,590

616,018^

goods

257,590

3~67~340

63.53

40.9

manufacturing

Nondurable

879,346

Feb.

76.59

♦66.30

Hours—

Durable

Customers'

80.15

65.86

goods

Nondurable goods

Feb.

—.

NEW

OF

omitted)

2,000
of

(tons

A.

Durable

total sales

13

55

FED¬

Weekly Earnings—
All manufacturing

STOCK

Feb.

—-——■

68

12

LABOR—Month of January:

dealers (customers' sales)—

Number of orders—Customers'

130

77

fabricators—

to

S.

AVFRAGE

COMMISSION:
—

Odd-lot purchases by

(tons

copper

FACTORY

purcnases) t—

shares

Number of

T.

N.

ON

EXCHANGE

dealers (customers

Odd-lot sales by

U.

237,563

433,801

BANK

(000's

of

(tons

Deliveries

12

31

INSTITUTE—For

Refined

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODD-

EXCHANGE

Jan.

Refined

246,171

Feb. 18

———

185

Copper production in U. S. A.—

ASSOCIATION:

PAPERBOARD

Orders received

—

73

145

$713,000

OUTSTANDING

PAPER

36

83

48
—

41

11

enterprises

service

development

public

3.11

Feb. 22

INDEX

COMMODITY

NATIONAL

—.

.

Group

and

23

43

75

RESERVE

of

COPPER

3.34

3.16

Baa

150

24

.....

3.11

3.17

145

174

*

85

public

Conservation

3.17

354

100

24

—

Miscellaneous

Feb. 22

-

A

339

95

water

COMMERCIAL

37

175

facilities

other

7

734

22

337

:

Highways

Feb. 22

Aa

building

12

783

23

Hospital and institutional
Other nonresidential building

All

46
226

14

-

and

27

49

271

734

;

building

Educational

Sewer

102

299

29

47

private—:

construction

Military

93

349

233

Industrial

DAILY AVERAGES:

YIELD

telegraph

and

Nonresidential

111.07

109.97

j

114.46

Baa

93

public utilities

Residential

109.06

112.93

All
Public

39

22

91.750c

16

75

302

utilities

35.300c

Feb. 16

DAILY

institutional

and

Miscellaneous

90.000c

Fob.

at

Bonds

S. Government

42

51

36.100c

Feb.16

110.34

U.

57

14

Feb. 1G

at_

97.13

Average

54
48

building-.

Railroad

109.60

BOND

143

29.675c

96.55

MOODY'S

176

Public

PRICES

Utilities

89

167

,.

nonresidential

29.700c

109.42

Public

.98

32.700c

Feb. 22

Industrials

164

98

32.700c

Feb. 22

Railroad

179

88

Farm

corporate—

A

172
186

87

Feb. 1G

:

at__

Government

Average

175

-

Feb. 1G

Louis)

MOODY'S BOND

U.

$35.83

QUOTATIONS):

at

Louis)

.*

63

Hospital

$56.59

copper—

(New

486

Social and recreational

4.634c

Domestic refinery at

Export reiinery at
Straits tin (New York)

23

534

185

Other

215

4.797c

.

J.

22

Educational

238

.Feb, 15

M.

&

730

77

-

527

Warehouses, office and loft buildings
Stores, restaurants and garages———

PRICES:

(per gross ton)

PRICES

9,922,000

DUN

ton)

gross

(nonfarm)

816

1,115

21,

building

1,710

1,214

70

v

2,202

1,001

Religious

AND

lb.)

(per

;

1

*

1,000

alterations

Commercial

9,912,000

205

AGE COMPOSITE

Finished

_..

2,027
-

Nonhousekeeping

BRADSTREET, INC
IRON

OF

millions):-

building (nonfarnyi
dwelling units*

Additions

RESERVE:!

kwh.)

000

DEPT.

(in

construction

New

INSTITUTE:

(in

output

S.

January

Residential

Industrial
EDISON ELECTRIC

of

construction

new

Private

INDEX—FEDERAL

CONSTRUCTION—U.

LABOR—Month
Total

OF MINES):

coal and lignite (tons)
Pennsylvania anthracite (tons)
STORE

Total

$149,692,000

130,168,000

Bituminous

DEPARTMENT

$257,151,000

-F$BtM.2

_

OUTPUT

$298,933,000

Feb?!7

municipal

Federal
COAL

$193,862,000

Jre

.

Public construction
State and

of that date:'

Previous

2,685,000

12,561,000

2,822,000
12,029,000

of

short

AMERICAN

7,030,000

25,208,000

(bbls.).-Feb. 11

iretgnt received

ENGINEERING

6,689,200

Feb. 11

(bbls.)

Revenue

CIVIL

6,721,250

——Feb. 11

AMERICAN

OF

(BUREAU

Production

Feb. 11

output

oil

ALUMINUM

Stocks of

(bbls.

average

are as

Month

85.0

Residual fuel oil output (bbls.)
Feb. 11
Stocks at refineries, bulk terminals, in transit, in pipe lines—
Finished and unfinished gasoline (bbls.) at
Feb. 11
Kerosene (bbls.) at____
Feb. 11
Distillate fuel oil (bbls.) at
Feb. 11
Res.aual

Ago

♦89.1

(bbls.)

oil

Ago

either for the

are

Latest

§89.2

Kerosene output (bbls.)—:
Distillate fuel

Week

of quotations,

cases

Year

...Feb. 27

output—daily

stills—daily average

output

Month

production and other figures for the

cover

Dates shown in first column

that date, or, ia

on

INSTITUTE:

condensate

to

runs

month ended

—Feb. 27

(net tons)

42 gallons each)-

Crude

month available.

Previous

Wee*

(percent of capacity)

and castings

PETROLEUM

oil

INSTITUTE:

or

or

Dollar

value

Round-lot

—

1

—

7,916

10,962

9,421

8,831

dealers—

sales by

367,340

Number of shares—Total

^

Durable

Round-lot

—..——.—

———

—

1.95

1.91

1.67

1.65

131

—

—

goods

1.96

1.68

130

125

130

goods

Nondurable

.Short sales
Other

goods

Hourly Earnings—
All manufacturing

128

124

INDUSTRIAL PRODUCTION—BOARD OF GOV¬

purchases by dealers—

Eem

Number of shares

5

THE

OF

ERNORS

RESERVE

FEDERAL

SYSTEM—1947-49—100—Month of Jan.:

STOCK SALES ON THE N. Y. STOCK
EXCHANGE AND ROUND-LOT STOCK TRANSACTIONS

TOTAL ROUND-LOT

ACCOUNT

FOR

adjusted

Seasonally

(SHARES):

MEMBERS

OF

Unadjusted

——

—

Total Round-lot sales—

658,620

426.280

BERS, EXCEPT ODD-LOT
Transactions

of

OF

ACCOUNT

FOR

TRANSACTIONS

16,794,760.

14,173,920

18,647,260

17,472,350

14,669,560

19,305,880

10,134,230

Month

MINES—

December:

of

"

Mine

production of recoverable metals in the

United

MEM¬

DEALERS AND SPECIALISTS:

Gold

registered-

specialists in stocks in which

OF

(BUREAU

OUTPUT

METAL

9,707,950

.Jan.29

Total sales

ROUND-LOT

495,640

.Jan.29

sales

Other

677,590

,*?*

Short sales

States:

142,133

151,389

157,243

3,038,860

*2,989,153

3,034,853

tons).

81,417

79,208

77,019

short tons)—

(in

Silver

Jan. 29
J£h. 29

346,860

245,280

348,440

220,510

Copper

.Jan. 29
————_———-Jan, 29
the floor—

1,905,020

1,572,450

2,049,730

820,280

Lead

26,597

26,911

25,315

2,251,880

1,817,730

2,398,170

547,540

463,410

543,970

297,000

——————Jan. 29
Other sales
—— Jan. 29
Total sales
*,
» Jan* 29
Other transactions initiated off the floor—

38,300

29,900

32,300

22,900

$278,462,873

$278,783,756

$274,923,609

4,728,388

5,179,536

4,044,002

$273,734,485

$273,604,220

$270,879,607

fine

—

ounce^).

1,040,790

—Jan. 29

ounces)

fine

(in

2,130,770

Total

purchases

(Short sales
Other

sales

Total sales

—

,

——

—

Other transactions
Total

—-■——„—————

——

initiated on

purchases

—r—■——————

v,Short sales

Total purchases
Short sales
sales

Other

Total sales
Total

1

——

———

purchases

690,535

962,613

462,270

3,368,845

2,951,415

3,593,083

1,657,714

486,290

336,550

480,940

282,080

3,226,755

2,711,269

3,474,463

1,543,690

PRICES,

WHOLESALE
LABOR

—

Commodity
All

(1947-49

—1~

NEW SERIES
100):

—

U.

—

3,713,045

3,047,819

3,955,403

1,825,770

S,

S.

Total
at

any

$281,000,000

$275,000,000

278,749,814

278,853,086

275,168,120

34,420

75,638

$278,783,756

1

—

2.291%

33,942

Dec.

face

2.412%

2.298%

$281,000,000

rate-

$278,887,507

$275,243,758

527,857

530,173

572,857

$278,255,899

$278,357,334

$274,670,901

2,744,100

2,642,665

329,098

DEBT LIMITATION
(000's omitted):

SATUTORY

GOVT.

31

amount

that

may

be

outstanding

time

Outstanding-*Total

public debt

gross

not

obligations

Guaranteed

owned by

the

Treasury
110.3

110.3

110.1

110.5

93.4

93.4

92.6

103.2

103.2

104.0

105.1

85.4

84.9

87.7

92.3

other than farm and foods

115.5

115.1

114.4

^Includes 721,000 barrels of foreign crude




115.4

—Feb. 15
runs.

1955, as against Jan. 1, 1954 basis of 124,330,410 thly
of orders not reported since introduction of Mon

tNumber

Total

98.0

Feb.15
Feb.15

Revised figure

1,

OF

Feb. 15

products
foods

All"commodities
•

^9

Feb. 15

Meats

Jan.

DEPT.

o <xn»

—

Group—

Processed

of

„„

—

commodities

Farm

„ _ _ —. —-

U.

—As of

of members—

^

AND

'

—.

annual

Computed

38,670

764,169

fn

——

balance——

fund

423,600

865,595

Jan. 29

DIRECT

DEBT

———

361,384

100,200
862,413

—

—

729,603

61,370

Ian

Total sales

557,455

General

Net debt

702,799

__

sales

GROSS

STATES

GUARANTEF.D-r-lOOO's omitted);
As of Jan. 31

299,810

101,130

———--————

-

(in short

(in

322,710

764,465

Short sales

Other

562,320

594,620

Jan'f

——

———

436,020

465,920

—Jan. 29

——

round-lot transactions for account

Total

557,270

—*

_——.,—

—————

999,330

595,570

—————

.——

2,319,510

UNITED

——

——

1,930,550

§Based on

new

annual capacity of 125,828,310 tons

teed

m

,,

<i>,'

public

debt

and

guaran¬

obligations
outstanding

Deduct—other

public

debt

obli¬

gations not subject to debt limitation——
Grand

total

outstanding

as
Balance

Investment Plan.

gross

under

face

amount

above

of

authority

—

obligations, Issuable

3G

The Commercial and Financial Chronicle

(948)

..

Thursday, February 24, 1955

.

if INDICATES

Now in

Securities

•fr Alaska Lease Co., Inc., Anchorage, Alaska
notification) 300,000 shares of common
^lock (par 25 cents). Price—35 cents per share. Proceeds
•—To acquire leases.
Office—235 East Fifth Ave., An¬
Feb. 14 (letter of

Underwriter—None.

chorage, Alaska.

York.
Steel Manufacturing Co.

filed

Feb.

11

and

50,000

(3/7)

purchase

certain

assets

of

machinery, tools and equipment,
and for working capital and other corporate purposes.
Office
Phoenix, Ariz. Underwriter — Lee Higginson
Corp., Chicago, III.
—

Amcrete Corp.,

Briarcliff, N. YDec. 6 (letter of notification) 7,500 shares of 6% par¬
ticipating preferred stock.
Price — At par ($10 per
<ihare). Proceeds—For working capital. Business—Dis¬
tributor of prefabricated concrete wall panels and
made of steel reinforced dense concrete, etc.

resses

butUn¬

derwriter—None.

Automobile

American

Co.

Insurance

one

share

new

be supplied by

shares held.

six

each

for

Price—To

Proceeds—To provide com¬

amendment.

and its wholly-owned subsidiaries, American Auto¬
Fire Insurance Co. and Associated
Indemnity

mobile

Corp., with additional capital funds.
JKidder, Peabody & Co., New York.
American

Underwriter—

Beauty Homes, Inc., Houston, Tex.

Price—$1

(par 10 cents).

share.

per

Proceeds—

For prefabrication and assembly of homes. Office—10509
Couth Main St., Houston, Tex. Underwriters — Hunter
Securities Corp., New York, and

Continental Securities

Corp., Houston, Tex.

mon

be

determined

by

Co.

Remote

Systems, Inc., Baltimore
Aug. 4 filed 620,000 shares of common stock (par §t
cents), of which 540,000 shares are to be offered tc
public and 80,000 shares to be issued to underwriter
Price—$3.75 per share.
Proceeds—For manufacture oi
Telebet units and Teleac systems and additions to work¬
ing capital. Underwriter—Mitchell Securities, Inc., Bal¬

of

which 50,000

shares

are

for the account of the

com¬

and 50,000 shares for selling stockholders. Pricesupplied by amendment. Proceeds—To discharge
mortgage indebtedness; to restore funds used in recent
pany

To

(letter of notification) 1,500,000 shares of com¬
stock (par five cents). Price—20 cents per share.

be

of adjoining land; for working capital and
general corporate purposes. Underwriter—Paine,
Webber, Jackson & Curtis, Boston and New York.

purchase

if Ben Franklin Oil & Gas Corp., New York
14 (letter of notification) 1,000,000 shares of com¬
stock (par one cent). Price — 15 cents per share.
Proceeds—For working capital. Office—17 Battery Place,
New York, N. Y. Underwriter—None.
Feb.

mon

Feb.

11

filed

insurance

Proceeds—For uranium and oil activities. Office—Judge

its

Bldg., Salt Lake City, Utah. Underwriter—Northern Se¬
curities, Inc., Seattle, Wash.

75,000 shares of class B common stock (par $1) to be
offered to present and future life insurance salesmen,

•

American

Potash

&

Chemical

Corp.

16 filed $7,000,000 of convertible subordinated de¬
bentures due March 1, 1970. Price—To be supplied by
Proceeds

—

To reduce

expansion and working capital.
Brothers and

Mock

To

(par

Business—To

equipment

Underwriters—Lehman

50,000 shares of

and

Anticline Uranium,

scientific

Office—67

apparatus.

Underwriter

sell

—

Wall

common

products,

St.,

New

McCoy & Willard, Boston,

Inc., San Francisco, Calif.

Oct. 28 (letter of notification) 2,970,000 shares of class A

capital stock.

Price—At par (10 cents per share).

Pro¬
ceeds—For exploration and development expenses.
Of¬
fice—995 Market St., San Francisco, Calif. Underwrite!
«—Coombs & Co., of Los Angeles, Inc., Los
Angeles, Calif.
Arctic

Oct.

Uranium

Mines

policies

with

stock

purchase

rights;

Underwriter—De

Corp., New York.

•jr Arizona Opportunities, Inc., Phoenix, Ariz.
Feb.

8

(letter of notification) 10,000 shares of class A
(par $10) and 40,000 shares of class B stock (par
L0 cents). Price—At par. Proceeds—For general
corpor¬

stock

ate purposes.
Office—216
Underwriter—None.

Luhrs

Bldg., Phoenix, Ariz.

permit to qualify

as

a

full legal reserve company and
Underwriter—None. Richard

expand into other states.

G. Johnson of Mesa, Ariz., is President.

18

Big Bend Uranium Co., Salt Lake City, Utah
Aug. 6 (letter of notification) 7,000,000 shares of commoz
stock. Price—At par (three cents per share). Proceed!
—For mining expenses. Office—510 Newhouse Building
Salt Lake City, Utah.
Underwriter — Call-Smoot Co.
Phillips Building, same city.

Big Indian Uranium Corp., Provo, Utah
July 15 (letter of notification) 500,000 shares of

common
stock (par 10 cents). Price—25 cents per share. Proceedj
—For mining operations. Address—Box 77, Provo, Utah

Underwriter—Weber Investment Co., 242 N. University

Ave., Provo, Utah.
Bikini Uranium

Corp., Denver, Colo.
(letter of notification) 3,000,000 shares of com¬

stock

(par one cent). Price—10 cents per share.
exploration and development costs. Of¬

Proceeds—For
fice

—1

705

First

National

Bank

Bldg.,

Denver,

Colo.

400,000 shares of capital stock (par $1).
Price—$5 per share. Proceeds
For general corporate
purposes,, including carrying of larger inventories and
—

Bingham-Herbrand Corp., Fremont, Ohio
2 (letter of notification) 3,000 shares of common
(par $1). Price—At the market (estimated at $10
per share).
Proceeds—To selling stockholder. Under¬
writer—Wm. J. Mericka & Co., Inc., Cleveland, Ohio.

Feb.

stock

if Bishop Oil Co., San Francisco, Calif. (3/16)
21 filed 153,236 shares of common stock (par $2)
to be offered for subscription by stockholders of record
the basis of two new shares for each
rights to expire on March 30. Price—
Proceeds — To retire bank
loan and to advance funds to Canadian Bishop Oil, Ltd.,

five shares held;
To be filed

by amendment.

wholly-owned subsidiary.
San

Underwriter—Hooker & Fay,

Canyon Uranium, Inc.
Nov. 29 (letter of notification) 6,000,000 shares of com¬
mon stock
(par one cent). Price—Five cents per share.
Proceeds—For mining activities.
Offices — 1003 Con¬
tinental Bank Bldg., Salt Lake City, Utah, and 618 Rood
Grand Junction,
Reed Co., Reno, Nev.
Ave.,

Colo.

Underwriter

—

James

E.

Blue

Jay Uranium Corp., Elko, Nev.
Oct. 15 (letter of notification) 1,000,000 shares of com¬
mon stock. Price—25 cents per share. Proceeds—For ex¬

Office—402 Henderson
Bldg., Elko, Nev. Underwriter—Security Uranium
Service, Inc., Moab and Provo, Utah.
ploration and development costs.
Bank

Boston

Pittsburgh

San Francisco

Private IVires




•

California

Feb.

to

all

offices

Tuna

Fleet,

Inc.

15 filed

(amendment) $500,000 of 6% sinking fund
debentures due 1967 and 50,000 shares of common stock
(par $1) to be offered in units of a $1,000 debenture and
shares of stock.

100

Price—Expected at $1,100 frer unit.
working capital. Office—
Underwriter—Barrett Herrick & Co.,

Proceeds—For expansion and
San

Diego, Calif.

Inc., New York.
Calumet &

Offering—May be effected in March.

Hecla,

Inc. (3/1)
50,000 shares of $4.75 cumulative preferred!
stock, series A (no par). Price — To be supplied by7 filed

amendment.

Proceeds—For expansion program.
writer—White, Weld & Co., New York.
Canadian

Dec.

Under¬

Petrofina, Ltd.

filed

20

1,751,428 shares of non-cumulative par¬
preferred stock (par $10—Canadian) being:
offered in exchange for shares of capital stock of Calvan
ticipating

Co., Ltd. at the rate of six

ferred

17

shares

for

each

Calvan

shares.

The

pre¬

offer

is-

contingent to acceptance by not less than 51% of the
outstanding Calvan stock and will expire on Feb. 28,.
unless

extended.

Underwriter—None.

Statement effec¬

tive Jan. 21.

Carnotite

Development Corp.
(letter of notification) 16,000,000 shares of com¬
mon stock. Price—At par (one cent
per share). Proceed*
—For exploration and development expenses.
Office—
317 Main St., Grand Junction, Colo. Underwriter—West¬
ern Securities Corp., Salt Lake
City, Utah.
Oct. 26

•

Carolina

Power & Light Co. (2/25)
50,000 shares of cumulative serial preferred*,
stock (no par) and 505,000 shares of common stock
(nopar). Price—To be supplied by amendment. Proceeds
—From sale of shares, together with other
funds, for
additions and improvements to property.
UnderwritersFeb. 2 filed

—Merrill

Lynch,

and

Dickson &

S.

R.

Pierce, Fenner & Beane, New York,,
Co., Inc., Charlotte, N. C.

Central & South West Corp. (3/1)
2 filed 600,000 shares of common stock

aries.

Chicago

Cleveland

if Buckner Finance Co. of Drayton Plains, Inc.
11 (letter of notification) $160,000 of subordinated
debenture notes due Dec. 31, 1969 and 8,000 shares of
common stock
(par $10). Price—At par. Proceeds—To
Feb.

and

purchase

to

Underwriter—To

common

be

shares

of

(par $5).
subsidi¬

determined

by competitive
bidding. Probable bidders: Blyth & Co., Inc. and Smith,.
Barney & Co. (jointly) The First Boston Corp. and

Lynch, Pierce, Fenner & Beane
and

Lazard

Freres

&

Co.

received

be

at

No.

20

(jointly); Leh¬
(jointly). Bids
up to 10:30 a.m.
(CST) on March 1
Wacker Drive, Chicago 6, 111.

Brothers

—To

•

Chesapeake & Colorado Uranium Corp. (3/7)
Dec. 7 filed 750,000 shares of common stock (par fivecents). Price—$1 per share. Proceeds—For exploration!
and development program. Office —
Washington, D. C.
Underwriter—Peter Morgan & Co., New York.
Circle Air

Industries, Inc.
(letter of notification) 299,000 shares of com¬
mon stock
(par five cents). Price—$1 per share. Pro¬
ceeds— For
machinery and equipment and working:
capital. Name Change—Company was formerly known
as
Paley Manufacturing Corp.
Office—244 Herkimer
Street, Brooklyn, N. Y.
Underwriter—Allen E. Beer*
Co., Philadelphia, Pa.

Nov.

29

if Civic Finance Corp. of Wisconsin (2/28)
10 (letter of notification)
12,000 shares of 5.60%
cumulative preferred stock.
Price — At par ($25 per
share).
Proceeds —• To repurchase existing preferred
stock and for

working capital. Office—633 North Water
Milwaukee, Wis. Underwriters—Emch & Co., and
Co., same city.

St.,

The Marshall

Colorado

Plateau

Uranium

Co.

Dec. 1 (letter of notification)

1,900,000 shares ot common
stock (par one cent). Price—15 cents per share. Proceeds
—For mining activities.
Office — 824 Equitable Bldg.,
Denver 2, Colo. Underwriter—John L.

Donahue, 430 16tb

St., Denver, Colo.
Consolidated Credit
Oct.

25

Corp., Charlotte, N. C.
$100,000 of 20-year 6%

(letter of notification)

subordinate

Francisco, Calif.

Blue

Philadelphia

loans.

Ohio. -Under¬

Feb.

March 14, 1955, on

filed

New York

commercial

writer—None.

Merrill

Feb.

& Associated Food Stores, Inc.,
Jamaica, L. I., N. Y.
Feb.

in

St., Dayton 2,

company,

insurance, to be offered to the general public. Pro¬
build up capital and surplus of company to

ceeds—To

Underwriter—I. J. Schenin Co., New York.

Securities

invested

life

Bldg.,

Oaetano

be

Second

Proceeds—To repay bank loans and loan from insurance-

(Regulation "D'') 1,500,000 shares of common
clock (no par value). Price—20 cents per share. Proceeds
—For general corporate purposes. Office — 411 Childs
Canada.

To

—

West

option coupons with and attached to policies of whole

mon

Manitoba,

Proceeds

Feb.

Oct. 15

Ltd.

28

Winnipeg,

common

$180,000 10-year registered 8% prom¬
issory notes to be offered in units of $500 principal
amount of notes and one share of stock. Price—$550 per

man

Price—$1 per share. Proceeds—
indebtedness and for working capital.

manufacture

and

York, N. Y.
Mass.

for

cent).

one

current

pay

bank loans and

Glore, Forgan & Co., both of New York.

American Scientific, Inc.
Feb. 2 (letter of notification)

of

stock (no par) and

district managers and state managers; and 455,208 double

(3/8-9)

Feb.

.amendment.

life

Insurance Co., Mesa, Ariz.
800,000 shares of class A common stock

to be offered to present and future holders ol

(par $1)

ISSUE

Consolidated Oil & Gas

Barry Controls Inc., Watertown, Mass. (3/2)
11 filed 100,000 shares of common stock (par $1),

Feb.

Best American Life

9

if Business Credit Corp., Dayton, Ohio
Feb. 8 (letter of notification)
360 shares

Feb.

Automatic

American Duchess Uranium & Oil Co.
Dec.

Underwriter—To

other

Jan. 20 (letter of notification) 300,000 shares of common

isiock

bonds due
Proceeds—To retire bank loans and for

1, 1985.

construction.

timore, Md.

(3/8)

REVISED

derwriter—None.

Office—136

Securities Corp.

16 filed 250,000

shares of capital stock (par $2) to
be offered for subscription by stockholders at the rate

pany

4

ITEMS

outstanding debts and to increase working capital.
Dixie Highway, Drayton Plains, Mich. Un¬

pay

unit.

City Electric Co. (3/9)
filed $10,000,000 of first mortgage

Atlantic

Inc.; Kidder, Peabody & Co. and Stone & Webster
(jointly); Union Securities Corp.; White,
Weld & Co.; Equitable Securities Corp.; Blair & Co. In¬
corporated; The First Boston Corp. and Drexel & Co*
(jointly); Lehman Brothers; Salomon Bros. & Hutzler;
Merrill Lynch, Pierce, Fenner & Beane.
Bids—To be
received up to 11 a.m. (EST) on March 9.
/

Allison Steel Mfg. Co.,

of

derwriter—None.

competitive bidding. Probable bidders: Halsey, Stuart &

Proceeds—To

amendment.

•

equipment and for working capital. Address—c/o
W. H. Bryan, 7500 Clayton Road, St. Louis 17, Mo. Un¬
and

cumulative convertible
Price — To be supplied by

preferred stock (par $10).

Feb.

if Associated Hardware Stores, Inc., St. Louis, Mo.
11 (letter of notification) 3,000 shares of common
Price—$100 per share. Proceeds—For inventory,

Feb.

PREVIOUS

Office—4393

(par $5)

75-cent

of

To be named by

—

Feb.

new

100,000 shares of common stock

shares

Underwriter

working capital.

amendment.

March

Allison

Registration

stock.

jr Allied Uranium Mines, Inc., Salt Lake City, Utah
Feb. 17 (letter of notification) 299,700 shares of common
slock (par one cent). Price — $1 per share. Proceeds—
For mining expenses. Office—701 Newhouse Bldg., Salt
Lake City, Utah. Underwriter—H. J. Cooney & Co., New
•

for

ADDITIONS

SINCE
•

sinking fund notes and 100 ten-year

rants to purchase 20 shares of
in units of

a

$1,000 note and

common

one

war¬

stock to be sold

warrant.

Price—$1,000

unit (each warrant is exercisable at $10 per share.)
Proceeds
To repay bank loan.
Office —221% West

per

—

Trade

& Co.,

St., Charlotte, N.
Richmond, Va.

C.

Underwriter—J.

C.

Wheat

Consol. Edison Co. of New York, Inc.
April 7, 1954, filed $50,000,000 first and refunding mort¬
gage bonds, series K, due May 1, 1984. Proceeds—To be
applied towards cost of redeeming $27,982,000 New York
Steam Corp. first mortgage bonds and $25,000,000 West¬
chester Lighting Co. general mortgage bonds.
Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders; Halsey, Stuart & Co. Inc.; Morgan,
Stanley
& Co.; The First Boston Corp. Offering—Originally set
for May 11, but has been postponed because of market

conditions.

No

new

date

set.

Volume 181

Number 5406

.

.

The Commercial and Financial Chronicle

.

t'-i

(949)'
Consolidated Fenimore Iron Mines Ltd.
Jan. 24 filed 204,586 shares of common stock
(par $7),
be offered for subscription by common stockholders

to

of record

Feb. 7,

1955 at the rate of one new share for
Price—$2.20 per share. Proceeds
.—From sale of this stock, plus
$440,000 to be available
from sale of 200,000 shares to Alator
Corp. Ltd. and
Yam Securities Ltd., and
$175,000 treasury funds, to be
used to pay for geological surveys and
metallurgical re¬
search, for drilling expenses and other general corporate
each five shares held.

purposes.

Office—Toronto, Canada. Underwriter—None.

Consolidated

Sudbury

Basin

Mines,

Toronto, Canada

;

Price—To be supplied by amendment.
Proceeds—For
exploration and development of properties. Underwriter
—Stock

to

underwriters

be

sold

Toronto

on

Stock

selected

or

Exchange

dealers

in

or

United

States.

holders of record March 1, 1955 on the basis of one
share for each five shares held; rights to
expire on

new

April

15.

Price

$18.75 per share. Proceeds
Office — 1 Green Hills Place,
—

For working

—

capital.
Underwriter—None.

Cincinnati, O.

Crampton Manufacturing Co. (3/2)
Feb. 8 filed $1,750,000 5Y2% first
mortgage bonds due
1975

(with

detachable

10-year
Price—To

stock purchase
supplied by amend¬
ment.
Proceeds—To repay bank loans, for
expansion
and working capital. Underwriters—Lee
Higginson Corp.

attached).

and P. W. Brooks &

be

Co., Inc., both of New York.

Crampton Manufacturing Co.
Feb. 8

filed

Oct.

11

ceeds

Corp.,

Denver,

Colo.

(letter of notification)

stock.

mon

Uranium

Price—At

For

—

1,000,000 shares of
(one cent per share).

par

exploration

Cuba
com¬

Pro¬

and

development expenses.
Office—206 Mercantile Bldg., Denver, Colo. Underwriter
—Petroleum Finance Corp., Oklahoma City, Okla.
Contact Uranium, Mines, Inc., N. Y.
Dec. 7 (letter of
notification) 500,000 shares of com¬
mon
stock (par one cent).
Price—10 cents per share.
Proceeds—For mining expenses. Office—100 West 42nd
St., New York. Underwriter—Justin Steppler, Inc., New
York.

HEW
February 24
(Bids

11

EST)

a.m.

February 25

&

struction

Inc.)

50,000

pfd.

Co.,

shs.

505,000

To

Romenpower Electra Con¬

—

which

received

the bonds in payment
Republic or one of more
Underwriters—To be named by amend¬
for

the

Dean &

Co., San Antonio, Texas
(letter of notification) $150,000

Feb.

10

debentures,

of 5% sinking
series, due Feb. 1, 1965. Price
(in denominations of $1,000
each).
Proceeds

—At par

second

CALENDAR
American

R.

S.

American

Co

stockholders—underwritten by
Peabody & Co.) 250,000 shares

Potash

&

Chemical Corp

(Lehman Brothers and Glore,
Forgan

stockholders—underwritten by Merrill
Pierce, Penner & Beane) 296,050 shares

Kidder,

Debentures

& Co.)

$7,000,000

Harris-Seybold Co.

shs.

(Kidder,

Common

to

Common

to

Dickson

common

South Carolina Electric & Gas Co

(Tuesday)

Automobile Insurance

(Offering

(Friday)

and

Courts and Public
Price—To be supplied by

March 8

Maryland Casualty Co
(Offering

Proceeds

fund

Bonds

and

1983.

due

work preformed

$10,000,000

Lynch, Pierce, Penner & Beane

Co.,

bonds

of its agencies.
ment.

Carolina Power & Light Co._-Preferred & Common
(Merrill

(Republic of)
$2,500,000 of Veterans,

amendment.

for

Peabody

Washington

Lynch,

&

.Common

Co.

Gas

and

McDonald

Light

&

Co.)

125,000

Co

Common

(Offering to stockholders—underwritten by Kidder,
(Peabody & Co.) 210,053 shares

March

9

February 28 (Monday)
Finance
.(Emcli

&

First Bank

Corp.
Co.

Stock

(Offering

to

of

(Bids

Wisconsin

The

and

Marshall

Co.,

Inc.)

361,922

by

(Blyth &

Co.,

Inc.

and

Alex.

Trust

(Tuesday)

10

Brown

Barney

&

Sons)

$14,000,000

(Thursday)
&

Co.)

Preferred

(Joseph McManus & Co. and

10,000

units

Common

A.

P.

Kibbe

&

Co.

$3,000,000.

(White, Weld & Co.) 50,000 shares

&

South
(Bids

West

10:30

Corp
600,000

Pacific

shares

Continental Electric Equipment Co

May Department Stores Co,
Sachs & Co.

and

Brothers)

Television
Co.

&

Co.,

511,205

Southern

Union

(Willis E.

Oils,

Burnside

Catalin

shares

Barry

Controls,

(Paine,

Crampton
(Lee

'

(John

Pacific Gas &

Simonds &

&

be

Bonds
Brooks

&

&

Co.,

Inc.)

Oklahoma
(Offering

$300,000

Inc.)

3

50,000

Glatfelter

Stanley

(P.

H.)

*

Arkansas

Debentures

Inc.)

(Lee

(Lee

Tire

&

Higginson

Co.)

Co.;

Corp.)

Rubber

(White,

Co.-

&

(letter of notification) 25,000 shares of common
(no par). Price — $10 per share. Proceeds—For
working capital. Office—203 East Cotton St., Longview,
Underwriter—D.

Common

.

(Wednesday)

&
11

Co.)

Co

EST)

Bonds

a.m.

EST)

1

Weld

Co.

&

Corp.);

Preferred

$9,350,000

Stone

Price-^A*
($1 per share). Proceeds—For machinery and build¬
ing and working capital. Office — 407 Liberty Tfuut
Bldg., Philadelphia, Pa. Underwriter—None.

Electronics Investment Corp., San Diego, Calif.
14 filed 2,000,000 shares of
capital stock (par $1).
Price—$5 per share. Proceeds—For investment.
Dec.

^ Elk Ridge Uranium Co., Salt Lake City, Utah
11 (letter of notification)
610,000 shares of com¬

Feb.

mon stock
(par 15 cents). Price — 30 cents per share.
Proceeds—For mining expenses. Office—103 West Sec¬

ond

South, Salt Lake City, Utah.

mon

(May

be

Union

&

Webster

Preferred
Securities

Office—506

First Security Bank Bldg., Salt Lake
City*
Underwriter—Utah Securities Co., same
city.

Financial

Credit

Corp., New York

Jan. 29, 1954 filed 250,000 shares of 7% cumulative sink¬

ing fund preferred stock.

Price—At par ($2 per share). (*

For

working caiptal.
Fountain & Co., Inc., New York.
—

Underwriter

—

E.

J.

offered

(2/28)
361,922 shares of capital stock (par $10) to
subscription by stockholders of record

for

Feb. 24, 1955 at the rate of one new share for each
eight
shares held; rights to expire March 14. Price—To be
sup¬

by

amendment.

Proceeds

—

For

investments

in.

of

banking affiliates. Underwriter—Blyth & Co,
Inc., New York, and San Francisco.

★ Flying-A-Ranch, Inc., Bethestia, Md.
(letter of notification) $250,000 of 6% first trust
notes and 10,000 shares of common stock
(no par) to be
issued in units of $25 principal amount of notes and one
Price—$25 per unit. Proceeds—For pur¬
chase of equipment and cattle to operate a ranch. Office
—7649 Old
Georgetown Road,

Md.

Under¬

Common

Corp.)

ir Fort Vancouver Plywood Co., Vancouver, Wash.
Feb. 21 filed 397 shares of

11

384,861

shares

$12,000,000

i

Common

Alabama Power
V

,

Co

;•

t

'

.

'

(Bids

y

11

a.m.

EST)

•

Southern

-

•'

'

'

■

(Wednesday)

Co.
(Bids

.

*

i(

'

>

Common
to

be

invited)

Junction, Cole.
300,000 shares of com¬
Proceeds—For

Price—At par ($1 per share).

and
development expenses.
Offiee — 618
Avenue, Grand Junction, Colo. Underwriter —
Joe Rosenthal, 1669 Broadway,
Denver, Colo.
Rood

Frio Frozen Foods, Inc.,

$15,000,000
1

November 9

>

(letter of notification)

stock.

500,000 shares

Anthony, Texas
(letter of notification) 20,000 shares of common
stock (no par). Price—$5 per share. Proceeds—For con¬
struction of plant and refrigeration. Address—Box
306;
Anthony, Tex. Underwriter—Norman D. Patterson, Jr.,
Jan. 25

Bonds

;

"*
.

Price—At par

exploratory

Bonds
EST)

per

Four States Uranium Corp., Grand

Aug. 16

(Tuesday)

a.m.

stock.

common

share).

Proceeds — For down payment on
purchase price of mill facilities and for other expenses.
Underwriter—John C. O'Brien, one of the promoters.

May 31( Tuesday)

'

(letter of notification) 5,000,000 shares of com¬
(par one cent).
Price—Five cents per share.
exploration and development expenses

stock

($4,500

(Friday)

Securities

Preferred

$500,000

$10,000,000

Underwriter—None.

Uranium, Inc.

Bethesda,

$15,000,000

April 15

(Bids

—Preference

same

(Friday)

and

May 10

$750,000

Co.,

share of stock.

$18,000,000

Light Co.____

Georgia Power Co

.

Investment

Electronics Co. of Ireland
Jan. 6 filed 300,000 shares of
capital stock.

mon

•,

Carter

Lynch,

Light Co
a.m.

Westpan Hydrocarbon Co.—

Shares

G.

address.

stocks

by Merrill
331,643 shares

Beane)

11

Debentures

$2,000,000

100,000

(Kidder, Peabody & Co.)




East Texas Loan & Investment Co.
Jan. 20

stock

be

(Thursday)

Electric

Proceeds—For purchase ef

estate, capital improvements and contingencies. Of¬
fice—306 E. Main St., Johnson City, Tenn. Underwriter
—D. T. McKee Investment
Co., Box 904, Bristol, Va.

writer—None.

(Monday)

&

nominations of $1,000 each).
real

plied

17

-y

Morgan

East Tennessee Water Corp.

Dec. 20 (letter of notification) $160,000 of first
mortgage
6% bonds dated Dec. 1, 1954. Price — At par (in de¬

First Bank Stock Corp.

(Wednesday)

$250,000,000

Corp.)

Corp.)

Dynaseal Lighting Corp., Cambridge, Mass.
7 (letter of notification) 57,000 shares of cumula¬
tive convertible preferred stock
(par $4) and 28,509
shares of common stock
(par one cent> to be offered
in units of one share of preferred stock and one-half
share of common stock. Price—$5 per unit. Proceeds—For product development,
inventory and working capi¬
tal. Office—5 Hadley Street,
Cambridge, Mass. Under* A
writer—Paul D. Sheeline & Co., Boston, Mass.
Feb.

$2,250,000

Transcontinental Gas Pipe Line Corp

Manufacturing Co

&

Staats

.Common

April

Chesapeake & Colorado Uranium Corp...Common
General

Co.)

&

(Bids

shares

*'

7

—

Feb. 4 filed

16

Fenner

Arkansas Power

Common

Higginson

(Peter

California

R.

Common
70,000

Allison Steel Manufacturing Co.___
Allison Steel

&

Power

$60,000,000

Co

March

* District Wholesale Drug Corp. of Washington
14
(letter of notification) $25,000 of registered
7% debentures and $25,000 of registered 8%% deben¬
tures. Price
At par (in denomination of $100 each).
Proceeds—To reduce notes and other obligations and i©
provide working capital. Office—52 O St., N.W., Wash¬
ington, D. C. Underwriter—None.

Preceeds

Preferred

stockholders—underwritten

Preferred

Boston

'

'

$6,000,000

William

one

Feb. 14

(Thursday)
&

to

(Offering to stockholders—underwritten by
The First Boston
Corp.) 125,000 shares
•

Weeks;

(Bids

Co

First

invited)

March 30

shares

General- Motors Acceptance Corp..
(P. H.)

Gas

$50,000,000

(Granbery, Marache & Co.)

(The

&

First

Pierce,

(Dillon, Read & Co.

Glatfelter

Preferred

Bonds

United States Ceramic Tile Co

(Morgan

be

to

March

shares

Union Oil Co. of California—.

•'

$10,000,000

(Offering to stockholders—to be underwritten) 153,236 shares

Common
150,000

(par

Feb.

Bonds

invited)

Corp., Moab, Utah

3,500,000 shares of com¬
cent). Price—Five cents per share.
Proceeds—For mining expenses. Office—M. I. C. Bldg,,
Moab, Utah. Underwriter—Security Uranium Service,
Inc., K. O. V. O. Bldg., P. O. Box 77, Provo, Utah.

Utah.

$1,000,000

Bishop Oil Co._._i.

Co.,

Co

Co.)

invited)

Co.,

March

be

March

shares

Reliance Electric & Engineering Co.—___Common
(Blyth

to

(Bids

Common

Boland

to

Preferred

...

Co.)

Southern Nevada Power Co
and

100,000

Electric Co

(Bids

(Bids

-

Inc

R.

&

Underwriter—

Proceeds—For

Kansas Gas & Electric Co

&

shares

Co

Manufacturing

Products,

—

Reid

Salt Lake City, Utah.
Co., same city.

com¬

ProceetW
Office—.

(letter of notification)

stock

mon

Oct. 18
Common

Common
Curtis)

Bldg.,

Diamond Uranium
Jan. 20

$14,000,000

200,000 shares

Kansas Gas & Electric Co

1,211,002

Corp. and P. W.
Inc.) $1,750,000

'

Granco

Brothers

....Common

Inc.)

&

Manufacturing

(Baker,

Baruch

(Wednesday)

Jackson

Higginson

Crampton

and

Inc

Webber,

Weeks)

(Tuesday)

Co.)

Corp.

(Hornblower

March 2

&

.

(Fulton,

$300,000

Co.,

Atlas

-

Ltd...

&

15

(Courts &

Productions,

Inc.

Inc.)

Hornblower

March

Common
Blauner

D.

and

Debentures

Atlantic Steel Co

$25,000,000

Inc.
(Milton

524

Eula Belle

Telegraph Co._Common

(Offering to stockholders—no underwriting)

North American

(Monday)

Corp

Inc.

Co.,

14

Co., Salt Lake City, Utah
(letter of notification) 2,000,000 shares of

stock Price—At par (15 cents per share).
—For exploration and development expenses.

$162,094

—-Debentures

Lehman

New England Telephone &

Finance

(Blyth &

Common

(Offering to stockholders—no underwriting)

(Goldman,

March

Common

CST)

a.m.

18

mon

par

Debentures

White Canyon Mining Co.

Calumet & Hecla, Inc
Central

Ct'ts.

$930,000

Petroleum Reserves, Inc.— .Debentures and
Stock

$300,000

(Smith,

1

Equip.
EST)

noon

March

Common

Securities Corp.)

March

$10,000,000

Georgia Ry.
(Bids

Blyth

Desert Uranium

Oct.

Tex.
Bonds

EST)

a.m.

shares

Ready-Made Buildings, Inc._
(Aetna

of

11

Minnesota & Ontario Paper Co

..Common

stockholders—underwritten

&

Central

Preferred

Co.) $300,000

Corp

shs.

(Wednesday)

Atlantic City Electric Co
Civic

Office—506 Judge Building, Sal?
City, Utah. Underwriter — Selected Securities
Ltd., Los Vegas, Nev.
Lake

Common

(Offering to stockholders—underwritten by The First Boston
Corp. and Johnston, Lemon & Co.) 126,349 shares

-

for mining operations.

Van Blerkom &

supplied

filed

4%

Desert Queen Uranium Co., Salt Lake
City, Utafh
259,500 shares of common
stock (par two cents). Price—$1 per share. Proceeds—

Jan. 26 (letter of notification)

150,000 shares of

be

(Thursday)

•'

•

7

Works

ISSUE

Rochester Gas & Electric Corp
»

Jan.

Underwriter—The First Trust Co. of Lincoln, Neb..

(3/2)

common stock
(par $1).
by amendment.
Proceeds—For
expansion and working capital.
Underwriter
Baker,
Simonds & Co., Detroit, Mich.

Price—To

new business,
including loans on automo¬
Office—800 Broadway, San Antonio, Texas-.

biles, etc.

common

—

Constellation

—To finance

Jan. 28

warrants

Ltd.,

Jan. 31 filed 3,000,000 shares of common stock
(no par).-

through

Continental Electric Equipment Co. (3/X)
(letter of notification) 8,645 shares of common
stock (no par) to be offered for
subscription by stock-,

37

''»

El Pasp, Tex.

-

*

Continued

—

on

-

page

38

-

•

38

me

(950)

Continued

from

^Fundamental
Feb.

filed

21

page

dend

37

60,000

stock,

shares

dividend

of $4,40

and $105.75,

prices of $105, $105,

(amendment) 4,000,000 additional shares
(par $2). Price—At market. Proceeds—

respectively.

Under¬

Proceeds—For mining

competitive bidding. Prob¬
Webster Securities Corp.; Lehman

of capital stock

able bidders: Stone &

Gatineau Uranium Mines Ltd.

Brothers and Equitable

(Canada)

Loeb

Inc.

Homes,

Dec.

15 filed 300,000 shares of common stock (par $1).
Price—$5 per share. Proceeds—For plant expansion, new
equipment, inventory and working capital.
Office—
Huntington Station, L. I., N. Y. Underwriter—S. D. Ful¬

ler & Co., New

Motors

General

Feb.

18

York.
Acceptance

(3/3)

Corp.

v

Uranium Corp.

Lucky Strike
Jan. 4 (letter oi

iiuimcation) 4,3uO,000

shares of common

Price—Five cents per share. Pro¬
mining operations.
Office—38 South Main
St., Salt Lake City, Utah. Underwriter—Seaboard Se¬

stock

(par one cent).

ceeds—For

curities Corp.,

Washington, D. C.

Uranium, Inc., Salt Lake City, Utah

Mac Fos

:

Sept, 16 (letter of notification) 4,000,000 shares of com¬
mon stock (par one cent).
Price—Three cents per share.
Proceeds—For exploration and development costs. Office

Loeb & Co. and A. C. Allyn & Co., Inc. (jointly); Lee
Hlgginson Corp. and Carl M. Loeb, Rhoades &c uo
(jointly); Stone & Webster Securities Corp. Bids—Had
tentatively been expected to be received Up to 11 a.m.
(EDT) on June 15 at The Hanover Bank, 70 Broadway.
*few York, N. Y., but offering has been postponed.

Bldg., Salt Lake City, Utah.
city.

—239 Ness

Underwriter-

Utah Securities Co., same

1

Magic Metals Uranium Corp.
Sept. 14 (letter of notification) 2,995,000 shares of com¬
mon stock (par one cent)*
Price — 10 cents per-share.
Proceeds—-For exploration and development expenses.
Office—65 East 4th South, Salt Lake City, Utah. Under¬
writer—Mid-Coninent Securities, Inc., the same city.

$250,000,000 of debentures, consisting of '
$50,000 of five-year debentures due 1960 and $200,000,★ Harris-Seybold Co., Cleveland, Ohio (3/8)
000 of 17-year debentures due 1972.
Price—To be sup¬
Feb. 16 filed 125,000 shades of common stock (par $1).
plied by amendment. Proceeds—To provide additional
Price
To be supplied by amendment.
Proceeds—To
working capital for the purchase of receivables. Under¬
finance expansion of business, and possible acquisitions.:
writer—Morgan Stanley & Co., New York.
•.
Underwriters—McDonald & Co., Cleveland, O., and Kid¬
General Motors Corp., Detroit, Mich,
i
der, Peabody & Co., New York.
>
Jan. 20 filed 4,380,683 shares of common stack (par $5)
Harvard Briewing Co., Lowell, Mass.
being offered for subscription by common stockholders
Feb. 1 filed 345,760 shares of common stock (par $1),
of record Feb. 8 at the rate of one new. share for each
which the Attorney General, as successor to the Alien
20 shares held; rights to expire on March 7. Price-—$75
Property Custodian, is the owner and proposes to offer
per share.
Proceeeds — For capital expenditures and
filed

city.

same

May 14, 1954 filed $24,000,00 first mortgage bonds due
June 1, 1984. Proceeds—To redeem $10,000,000 of 3%%
first mortgage bonds due 1981 and $10,000,000 of 3%%
first mortgage bonds due 1983, and for general corpo¬
rate purposes.
Underwriter—To be determined by com¬
petitive bidding.
Probable bidders: Halsey, Stuart &
Co. Inc.; Lehman Brothers; Merrill Lynch, Pierce, Fenner &
Beane and White, Weld & Co. (jointly); Salo¬
mon Bros. & Hutzler and Union Securities Corp.; Kuhn,

city.
General

Securities Corp. (jointly); Kuhn,

&

Gulf States Utilities Co.

City, Utah
shares of capital
stock (par one cent). Price—Two cents per share. Pro¬
ceeds—For exploration and development of oil and ura¬
nium properties.
Office — 414 Judge Bldg., Salt Lake
City, Utah. Underwriter—Utah Uranium Brokers, same
Gem Uranium & Oil Co., Salt Lake
Dec. 9 (letter of notification) 11,000,000

Office—402 Darling

— Uranium
Utah.
Lucky Lake Uranium, Inc., Salt Lake City, Utah
Feb. 9 (letter of notification) 8,000,003 shares of capital
stock. Price—At par (two cents per share). Proceeds—
For mining expenses.
Office—201 Boston Building, Salt
Lake City, Utah.
Underwriter—Kastler Brokerage Co.,

Co.; Glore, Forgan & Co. and W. C. Langley &
Co. (jointly). Bids—Had tentatively been expected to be
received up to 11:30 a.m. (EDT) on June 15 at The
Hanover Bank, 70 Broadway, New York, N. Y., but of¬
fering has been postponed.

Aug. 10 (Regulation "D") 300,000 shares of common stock.
Price—At par ($1 per share).
Proceeds—For explora¬
tion and development costs. Office — 100 Adelaide St.
West, Toronto, Canada. Underwriter—McCoy & Willard,
Boston, Mass.

operations.

Bldg., Salt Lake City, Utah.
Underwriter
Mart, Inc., 146 S. Main St., Salt Lake City,

writer—To be determined by

For investment.

Thursday, February 24, 1955

..

Liberty Uranium Corp., Salt Lake City, Utah
July 1 (letter of notification) 3,000,000 shares of common
stock (par one cent).
Price—Three cents per- share.

preferred stock, 1949 series, and 50,000 shares of $4.44
dividend preferred stock at the prevailing redemption

N. J.

Inc., Elizabeth,

Investors,

preferred

Commercial and Financial Chronicle

—

at

M.

20

Shares, Inc., Detroit, Mich.

ir Holan

filed

52,356 shares of class A stock (par $1),
11,106 shares of class B stock (par $1) and 786 shares of
comon stock (par $1)
being offered for subscription * by

Feb.

and

$134.06

B

on

$150 per share; and for class C stock,
share. Proceeds—To purchase common stbek

per

of General

ic General Tire & Rubber Co., Akron, Ohio

Utah
1,200,000 shares of com¬
cents per share). Pro¬
ceeds—For development and
exploration expenses. Of¬
fice—404 Boston Building, Salt Lake
City, Utah. Under¬
writer—P. G. Christopulos & Co., same city.
Price—At

Glatfelter

(P. H.)

par

Co., Spring Grove, Pa.

Glatfelter
filed

(P. H.)

held; rights to expire on March
supplied by amendment. Proceedsother funds, to be used for expansion

Underwriter—The

First

Boston

Corp.,

of

Metallurgical Corp.
147,500 shares of

filed

which

30,000

shares

stock

common

to

are

be

offered

to

filed

&

Electric

$10,000,000

of

Co.

Products, Inc.

(N. Y.)

(3/2)
common

first mortgage

per share.
Proceeds
machinery and equipment, further development
research, and working capital. Business—Electronic,
and

electro-mechaniacl products.

due

Office—c/o

,

—

At par

($1

per

general corporate purposes.

Salinas, Calif.
Gulf States

share).

Office

—

common

Electric

&

Co.

(3/15)

Brothers; Blyth & Co. Inc.; Union Securities Corp.;
White, Weld & Co. and Shields & Co. (jointly); Kidder,
Peabody & Co. and Merrill Lynch, Pierce, Fenner &
Beane (jointly).
Bids—Tentatively expected to be re¬
ceived up to 11 a.m.

1124

Abbott St.,

it Lemke
Feb.
stock

Utilities Co.

May 14, 1954 filed 160,800 shares of preferred stock (par
$100). Proceds—To redeem 50,000 shares of $4.50 divi¬




Gas

(EST)

on

March 15.

Proceeds^-For

Underwriter—None.

stock of Devoe; 1,290,252 shares

8

1,290,252 outstanding shares of common

Qbrjftv

by Merritt, at the rate of one sharej
common stock, of Newport; 26,114,
holders of the 17,409 outstanding shares
of;

not owned
to

common

stock

not^owned
to

holders

(par

$10)

of

Marion

Power Shovel Co.,!

the rate of 1
shares for
stock of Marion: and 940 shares

Merritt, at

by

edteh share of

common

of

the

1,410

outstanding

shares of

class

B

cpnirnon stock (without par value) of the Osgood Co.,
not bwned by Merritt or Marion, at the rate of one share
*nr teach
shares of class B common stotek of.Osgood.
Offer will expire on Feb. 28. Dealer-Mana?er—A. C.

Allyn & Co., Inc. for Devoe & Raynolds exchange.

/

Mesa Petroleum Co., Inc., Wichita, Kans.Fab. 9 (letter Of notification) 75,000 shares of common
;

stock

Price—$4 per share. Proceeds—To com¬
wells already drilled on properties owned by
company; and to drill additional wells. Office—303 In¬
surance Building,
Wichita, Kans. Underwriter—Albert
C. Schenkosky, same address. ^
(no par).

plete

60,000 shares of cumulative preferred stock
(par $100).
Proceeds—To repay bank loans and for
construction program* Underwriter—To be determined
by
competitive bidding.
Probable
bidders:
Lehman

New York.

Price

Underwriter—To be determined by com¬
bidding. Probable bidders: Halsey, Stuart &

Feb. 11 filed

Henry Fogel, President, 36-17 20th Ave., Long Island
City, N. Y. Underwriter—John R. Boland & Co., Inc.,
* Growers Container Corp., Salinas, Calif.
Feb. 7 (letter of
notification) 250,000 shares of

common

stock (par $1) of New York Shipbuilding Corp., at the
rate of one share for each share of common stock of N. Y.

shartes
bonds

Proceeds—To repay bank loans and for construc¬

Kansas

—For

electrical

to holders

for-teach 2.1 shares of

(3/15)

Glore, Forgan & Co. and Goldman Sachs &
(jointly); Blyth & Co., Inc. and The First Boston
Corp. (jointly); Union Securities Corp. and Stone &
Webster Securities Corp. (jointly); Lehman Brothers and
Bear, Stearns & Co. (jointly); Kidder, Peabody & Co.
and Merrill Lynch, Pierce, Fenner & Beane (jointly);
Kuhn, Loeb & Co. and A. C. Allyn & Co. Inc. (jointly).
Bids—Expected to be received up to 11 a.rm (EST) on
March 15.
/
;

—

Gtanco

stock.

Gas

Co.

working capital. Office—Beverly, Ohio. Un¬
derwriter—McDonald & Co., Cleveland, Ohio. Offering—
Temporarily postponed.

and

11

petitive
Co. Inc.;

group

ments and

Feb. 4 (letter of notification)
120,000 shares of
stock (par 50 cents). Price—$2.50

shares

Corp. on the following basis: 675,549
of the 540,439

Shipbuilding; 27,907 shares to holders of the 58,605 out¬
standing shares of common stock (par $1) of Newport Steel;

1985.

composed largely of stockholders of Globe Iron Co, the
parent, and 117,500 shares are to be offered to public.
— $10
per share. Proceeds
For capital improve¬

Price

Newport Steel Corp., Marlbn, Power Shovel
Co., Osgood Co. and Tennessee products & Chemical
Co., Inc.,

ta holders of the

Feb.

New

(par $5),
a

Merritt»Chapmaifr & Scott Corp.'
21 filed 3,018,567 shares of common stock
(par
$12150) being offered in exchange for outstanding stock
of New York Shipbuilding Corp., Devoe & Raynolds

each'of class B

tion program.

Globe
18

>

gtOch; (par $1) of Devoe, at the rate of 1% shares for

Kansas

York.

Jan.

Dec.

;

—

be

with

program.

Goldman,

Proceeds
For oil and mining expenses.
Office—318
Phillips Petroleum Bldg., Salt Lake City, Utah. Under¬
writer—Hunter Securities Corp., New York.

(3/3)

for each 1.76 shares then

Together

—

Justheim Petroleum Co., Salt Lake City, Utah
Dec. 9 (letter of notification) 2,650,000 shares of com¬
mon stock
(par five cents). Price—10 cents per share.

(par $10)
to be offered for subscription
by common stockholders
of record March
1, 1955 on the basis of one new share
Price—To

Underwriters

Sachs & Co. and Lehman Brothers, both of New York.

other.

stock

common

future expansion projects.

>

(3/3)

Co., Spring Grove, Pa.

125,000 shares of

Feb. 9 filed

outstanding shares of common stock (par
$5) of Tennessee Products & Chemical Corp., at the
writer—None.
rate of IV4 shares for each share of common stock of
Jarmon Properties & Oil Development Corp.
Tennessee; 755,105 Shares to holders of the 453,063 outJan. 17 (letter of notification) 30,000 shares of capfal
staiMng shares of class A stock (par $2) of Devoe &
stock. Price—At par ($10 per shared ProceedSrr-Fbr fur¬
} Raynolds Co., Inc. at the rate of 1% shares for each
ther exploration and development. Addres—p. 0. Box
Hshare of class A stock of Devoe; 242,700 shares to holders
1109, Wichita Falls, Tex. Underwriters-John .A, Aicholtz
of
182,025 outstanding shares of class B common
& Associates, 505 Macon St., Fort Worth, Tex., and an¬

funds, to
Underwriter—The First

be used for expansion program.
Boston Corp., New York.

16.

Under¬

and to finance establishment and operation of additional
loan and finance offices. Office—Phoenix, Ariz. Under¬

(25

Feb. 9 filed 40,000 shares of cumulative
preferred stock,
series of 1955 (par $50).
Price — To be supplied by
amendment.
Proceeds—Together with other

9

properties in Utah and New Mexico.

on

mon

stock.

Department Stores Co. (3/1) ^
$25,000,000 of sinking fund debentures due
March 1, 1980. Price — To be supplied by amendment.
Proceeds — For working capital and for current and
May

Feb. 17 filed

Underwriter—Kidder, Peabody & Co.,

General Uranium Corp.* Salt Lake
City,
Oct. 27 (letter of notification)

Feb.

V

ic Inland Western Loan & Finance Corp.
2,500,000 shares of class A non-voting com¬
stock (par $1). Price—$1.25 per share. Proceeds—
To be used as operating capital for its two subsidiaries,

Proceeds— To reduce bank loans and for

New York.

mon

the basis of one new share for each six

early in March.

(3/7)

16 filed 100,000 shares of cumulative convertible
preference stock (par $100). Price—To be supplied by

amendment.

on

held; rights to expire March 10. Price—To be
supplied by amendment. Proceeds — To retire 213,748
shares of $2.10 preferred stock at $52.50 per share; and
for
working capital.
Underwriter
Merrill Lynch,
Pierce, Fenner & Beane.
shares

writer—Barrett Herrick & Co:, Inc. and Franklin, Meyer
& Barnett, both of New York.
Offering — Expected

Feb.

working capital.

Underwriter—None.

•

options

\

common.

-

1955.

.

record Feb. 24

the basis of one
rights to expire

Underwriter—None.

Corp., Buffalo, N. Y.

offered

Maryland Casualty Co., Baltimore, Md. (2/25)
Feb. 3 filed 296,050 shares of common stock (par $1) to
be offered for subscription by common stockholders of

Holly Uranium Corp., New York
Feb. 10 filed 900,000 shares of common stock (par $1).
Price—$3.50 per share. Proceeds—To exercise certain

Corp. through the exercise of rights
received from that company. At Dec. 31, 1954, G. M.
Shares, Inc. owned 2,577,160 shares of General Motors

*,

,

filed

15

be

share held of record March 4,
r;-

1955. Price—$7 per share. Proceeds—For
plant and working capital. Office—4100 West 150th

St., Cleveland, Ohio.

Motors

.

64,000 shares of common stock (par $5)
in exchange for all of the outstanding
stock of Bank of Gowanda at the rate of eight shares of
Marine Midland common for each Bank of Gowanda
to

March 7,

new

stock,

same

Feb.

14

stockholders of record Feb. 21, 1955 on
new
share for each seven shares held;

<

operations. Office—587 — 11th Ave.,
City, Utah. Underwriter—Potter Investment
city.

Marine Midland

^^'.

Corp.,

Lake

Co.,

(letter of notification) 22,81$common
stock (par $1) to be offered for subscription by common

holders of the respective shares at the rate of one new
share for each 20 shares of such stock held as of record
Feb. 8; rights to expire on March 1. Prices—For class
A

(J. H.)

Uranium, Inc.

(letter of notification) 20,900,000 shares of com¬
Price—At par (one cent per share). Pro¬

stock.

ceeds—For mining

Salt

competitive bidding.

the company will file poStfeffebtive amendments to
supply the requisite additional.
'are
625,000 shares outstanding. Offcrt%~Ddte ^^cted to
be set later in February.
'

Underwriter—Morgan Stanley & Co., New York.
G.

mon

If any such bid is accepted, and
if the successful bidder plans to .distribute the shares,

working capital Subscription Agents—J. P. Morgan &
Co. Incorporated, New York, N. Y.; National Bank of
Detroit, Detroit, Mich.; Continental Illinois National
Bank & Trust Co., Chicago, 111.; and Bank of America
N. T. & S. A., San Francisco and Los Angeles, Calif.

Jan

Marble Canyon
Feb. 4

(B. L.)

& Co., Inc.

(letter of notification) 10,000 shares of common
(par 50 cents). Price — At market (estimated at

$3.50 per share). Proceeds—To selling stockholders. Of¬
fice—Lodi, N. J. Underwriter—None, stock to be offered
from time to time through brokerage houses.

^ Minnesota & Ontario Paper Co.

(3/9)

Feb. 21 filed $14,000,000 of sinking fund debentures due
1975. Price—To be filed by amendment. Proceeds—To

promissory notes due Oct. 1, 1966, and for
general corporate purposes. Underwriters—Blyth & Co.,
Inc., New York and San Francisco; and Alex. Brown &
Sons, Baltimore/ Md.
prepay 4%

^ Missouri Research Laboratories, Inc.
(letter of notification) $300,000 of 6% sinking
debentures, series A. Price—At par. Proceeds—
For general corporate purposes. Office—2109 Locust St..
St. jLouis 3, Mo. Underwriter—P. W. Brooks & Co. Inc..
Feb. 14
fund

^New York.

Volume 181

Number'5406

.

.

The Commercial and Financial
Chronicle

,

(951)
Missouri Uranium Corp., Kansas
City, Mo.
Jan. 24 filed
150,000 shares of preferred stock (par $5)
and 150,000 shares of common stock
(no par) to be of¬

fered in units of

—$5

unit.

per

^ Pacific Finance Corp., Los Angeles,
Calif.

share of each class of stock. Price
Proceeds—For exploration and develop¬
one

1967.
To

ment, etc. Underwriter—Dale E. Klepinger &
Associates,
203 W.
Dartmouth, Kansas City, Mo.
Monte Cristo Uranium
Oct.

Corp., Moab, Utah
(letter of notification) 3,000,000 shares of

5

mon

stock

(par

cent). Price—10 cents
exploration and development

Proceeds—For

one

Underwriter—James

E.

Reed

Co.,

139

per

North

stock

Price—10 cents

and

5V2%

due

be

Wesk^

determined

•

share).
Proceeds
To purchase raw materials and
equipment;
and *for
expansion. Office
10506 Wheatley St., Ken¬
sington, Md. Underwriter—None.
per

—

—

Mother Lode Uranium Co.
Jan; 28 (letter of
notification) 10,000,000 shares of com¬
mon stock.
Price—At par (two cents per
share)'. Pro¬
ceeds—For mining
operations.
Office—470 South 13th
East, Salt Lake City, Utah.
Underwriter—M. C. Leon¬
ard

and

Associates, 602 Tribune Bldg., Salt Lake City,

Utah.

★ National

Aviation Corp., New York
Feb. 18 filed
111,618 shares of capital stock (par
$5) to
be offered for
subscription by stockholders at rate of
one new share
for each four shares
held. Price—To be
supplied by amendment. Proceeds
For investment.
—

England Telephone &
Telegraph Co.

(3/1)
Feb: 4 filed
511,205 shares of capital stock to be offered
for
subscription by stockholders of record March
1, 1955
at the rate of one
new share for each
fjive shares held;
rights to expire on March 31.
Price—At
($100

par

per

share). Proceeds—To
repay advances from
American
Telephone & Telegraph
Co., the parent, which owns
1,769,035 shares
(69.21%) of the outstanding stock.
U nder
writer—None.

+ New Mexico Copper
Corp., Carrizozo, N. M.
(letter of notification) 80,698 shares of
common

Feb. 16
stock

(par 25 cents).

60 cents per

writers

Price—At market (not to exceed
Proceeds—To underwriters. Under¬

share).

Mitchell

—

Weber-Millican Co.
City.

Securities,

Inc., Baltimore,
Md.;
Charles M. Weber, both of New

and

York

New

Pacific

Coal

&

Oils,' Ltd., Toronto, Canada

Dec. 28 (regulation
"D") 275,000 shares of
(no par;,

which

oi

120,000 shares

are

to

common

be

stock

offered

in

Canada and 155,000 shares in
the United States. Price—
Proceeds — To selling stockholders.

55 cents per share.

Underwriter—L. D. Friedman &
Co., New York.
New Silver Belle

Mining Co., Inc., Almira, Wash.
notification) 500,000 shares of common

Sept. 8 (letter of
stock

(par two cents). Price—-10 cents
per share.
Pro¬
ceeds—For* exploration and
development costs. Under¬
writers—Percy Dale Lanphere and R. E. Nelson &
both

of

Spokane,

Nipissing Mines
Jan. 3 filed

Co.,

Wash.
Co.

Ltd.,

1,200,000 shares of

Toronto,
common

Proceeds—For

payment of options, development
machinery and equipment. Under¬
writers—Allan H.
Investments, Ltd.; Alator Corp., Ltd.;
of properties, and

Louis

A.

Chesler;

Bradley

Canada.

Streit;

all

of

Toronto,

it North American Petroleum
Corp.,
Corpus Christi, Texas
Feb. 11
stock

(letter of notification) 200,000 shares of
common
(par 25 cents). Price—$1 per share.
Proceeds—

For oil
•

drilling

North
Inc.

Feh. 3
stock

expenses.

Underwriter—None.

American Television

(3/1)'

Productions,

(letter of notification)
100,000 shares of common
10 cents). Price—$3 per share.
Proceeds—

—Production

of

and

films,- working capital, etc.
distribution

of

Business

motion

pictures for
theatrical, and non-theatrical exhibitions.
Office—222 East 46th St., New
York, N. Y. Underwriters
—Milton D. Blauner &
Co., Inc. and Baruch Brothers
& Co., Inc., both of New
York.

television,

it Oklahoma Gas & Electric Co.
(3/17)
Feb. 23 filed 331,643 shares of
common stock
(par $10)
to be offered for
subscription by common stockholders
of record about March
16 on the basis of one new
share
for each
eight shares held; rights to expire on or about
March 31. Price—To be
supplied by amendment. Pro¬
ceeds—For construction
program.

Lynch, Pierce, Fenner
•

&

Underwriter—Merrill
Beane, New York.

Olympic Development Co.,
Stamford, Conn.' ^
13 (letter of
notification) 85,628 shares of common

Jan.

stock

(par $1) being offered for
subscription by stock¬
holders of record Jan. 24 at
rate
of two

each share
an

For

held

(with

new

shares for

an

oversubscription privilege~for
additional five shares).
Price—$3.50 per share. Pro¬

ceeds—To retire short-term notes
and for working
capi¬
tal.
Office—30 Commerce
St., Stamford, Conn. Under¬

writer—None.




of

5%

of

4%
stock

St., Providence, R. I.
Co., New York.
•

Underwriter—d'Avigdor &
; ' ":
' '
'
★ St. Regis Paper Co., New York
>..

Feb.
be

(par

Regis

—

be

offered

to

stock

Estimated

working capital.
•

pursuant

stockholders of record Jan. 21

holders,

each

7y2

shares

Price—To

of

San
Feb.

pro¬

record

each

Pa.

will

be

Corp.

same

city.

Mineral Bldg.,

Underwriter

Tellier

—

Office—1917-1921

W.

Oxford

St.,

&

Co.,

Philadelphia,

Underwriter—None.

Feb.

4 filed

due

$10,000,000 of 4%% convertible debentures
1, 1967. Price—To be supplied by amend¬
Proceeds—To be used
principally to reduce short

March

ment.

shares

held.
Any shares remaining unsub¬
following date of mailing of warrants
disposed of through the company's executive

30

of

Sheraton Corp of America

250,000 shares of capital stock (par $1) to
subscription by common stockholders of
March 1, 1955 on the basis of one new share for
for

three

both

it Sentry Safety Control Corp., Philadelphia, Pa.
11 (letter of
notification) 14,666 shares of common

filed

scribed

Brewing

Corp.,

Feb.

delayed.

15

Securities

Miguel Uranium Mines, Inc.

stock.

^ Pyramid Life Insurance Co., Charlotte, N. C.
offered

Francisco

Grand Junction, Colo.
Jersey City, N. J.

Underwriters—Morgan Stanley & Co.; Drexel &
Co.; and Glore, Forgan & Co. Offering — Temporarily

Feb.

McGrath

3

San

gram.

be

and

Jan. 6 (letter of
notification) 2,000,000 shares of common
stock (par one cent). Price—15
cents per share. Pro¬
ceeds— For
mining operations. Office —

Price—To be supplied by amendment. Pro¬
construction

Corp., Santa Fe, N. M.

Underwriter—Blyth & Co., Inc.,

Dec. 22 filed 250,000 shares of cumulative preferred stock

for

Proceeds—For working

stock

■

and

unit.

—

(letter of notification) 6,500 shares of common
(par $10), represented by voting trust certificates.
Price—$42.50 per share. Proceeds—To Estate of Anna
M. Lurmann. Office—470-10th
St., San Francisco, Calif.

one

stock¬

Public Service Electric & Gas Co.

loans

per

Asnebumskit, Paxton, Mass. Under¬
Kinsley & Adams, 6 Norwich St., Worcester,

Klein Co.
New York.

—

bank

Michigan common
shares outstanding.

Sept. 14 filed 300,000 shares of common stock
(par 10
cents).
Price—$2 per share.
Proceeds—For develop¬
ment and exploration
expenses, etc.
Underwriters—R.

plan.

Proceeds—For

per share; to public, $12.50 per
share.
working capital, etc.
Office—Syracuse,
N. Y. Underwriters
George D. B. Bonbright" & Co.,
Rochester, N. Y.; William N. Pope, Ihc., Syracuse, N. Y.;
Doolittle & Co., Buffalo, N.
Y.; and First Albany Corp.,
Albany, N. Y.
■'

ceeds—To reduce

—

Samicol Uranium

$11.50

(par $100).

Price—$1,000

capital. Office

Proceeds—For

f

St.

.

the basis

on

held.

128,000

one

6,000 shares of common stock (par $1) to be offered first
to stockholders in units of
$1,000 of notes and 40 shares
of stock.

V.

share

shares-of

are

of

Salisbury Broadcasting Corp., Paxton, Mass.
notification) $150,000 of 5% notes and

(letter of notification) 24,000 shares of common
stock (par $10) being offered for
subscription by com¬
mon

the basis

Jan. 20 (letter of

Porter-Cable Machine Co.

new

5V4

on

Underwriter—N one.

Jan. 27

for

there

common

purchase

at $21.16 per share.
Underwriter—None.

each

which

Mass.

Feb.

to

share,-for
of

writer

^ Pitney-Bowes, Inc., Stamford, Conn.
11
(letter of notification) nine shares of

24,381 shares of common stock (par $5) to
exchange for common stoek (par $1) of

in.

stock

acquisition of producing oil and gas properties. Un¬

stock

18, filed

offered

Michigan Molded Plastics, Inc.

due
1970,
(par $25) and
10 cents) to be

stock

.

—

Broad

debentures

preferred

common

,

^

derwriter—Smith, Barney & Co., New York.

term

days

bank

loans.

&

son

Underwriters—Paine, Webber, Jack¬

Curtis; White, Weld & Co.;
Hemphill, Noyes & Co.; and Hamlin

committee. Price—$3.75 per share. Proceeds—To
expand
business. Underwriter—None.

Lehman

Brothers;

& Lunt.

Shumway Uranium Mining Corp.
(letter of notification) 200,000 shares of
capital-

Jan. 28

Ranger Lake Uranium Mines, Ltd., Toronto,

stock.

Canada

ing

Dec. 30

(regulation "D") 300,000 shares of common stock
(par 10 cents). Price—$1 per share. Proceeds—For gen¬

eral

corporate

purposes.

Underwriter—James

Rare
Nov.

Earth

Anthony

Uranium, Inc., Reno, Nev.
(letter of notification) 2,994,000 shares of
com-^
(par five cents). Price—10 cents per share.
Proceds—For exploration and
development costs. Of¬
fice—211-206 N. Virginia Street,
Reno, Nev. Underwriter

(par

—Western

filed

Denver, Colo.

Development Corp.
Oct. 8 (letter of
notification) 2,900,000 shares of common
stock (par five
cents), including shares for option to

$5)
be
supplied by amendment.
Proceeds—To
Pulley Co., who with its subsidiary is selling
their operating assets for 80,000 shares of Reliance stock

underwriter and

prior property owner to be amended.
share. Proceeds—For development
and exploration expenses. Office—Newhouse
Hotel, Salt
Lake City, Utah. Underwriter
Van Blerkom & Co.,

Price—To

Priee—10

Reeves

cash.
Office
Cleveland, Ohio. Underwriter
Blyth & Co., Inc., New York and San Francisco.
—

Rico

stockholders of record

Jan.

14

on

the

basis of

one

new

shares for each

12% shares held (with an oversubscrip¬
tion privilege); rights to
expire on Feb. 28. Price—$4.25
per share.
Proceeds—Toward payment of construction
of

sulphuric acid plant at Rico, Colo. Office—132 South
City, Utah. Underwriter—None, but
Bonneville-On-The-Hill Co., a stockholder will subscribe
Main St., Salt Lake

for all shares not taken

by other stockholders. Subscrip¬
Guaranty Trust Co. of New York, 140
Broadway, New York 15, N. Y.
tion

Agent

—

Rochester Gas
Feb.
due

3

filed

1985.

& Electric Corp.
(2/24)
$10,000,000 first mortgage bonds, series O,

Proceeds—For construction

program,

includ¬

ing the discharge of $9,200,000 short term obligations.
Underwriter—To be determined by competitive bidding.

cents

per

—

same

—

Argentine Minihg Co.
Dec. 2 (letter of
notification) 70,395 shares of common
stock (par 50 cents),
being offered for subscription by

-

Slick Rock Uranium

Electric & Engineering Co. (3/2)
50,000 shares of common stock (par

and

stock

Proceeds—For mining expenses. Office—130 South 13th
East, Salt Lake City, Utah. Underwriter—Peters, Writer
& Christensen, Inc.,

York.

8

17

mon

10 cents).

Reliance

Co., Salt Lake City; Utah
(letter of notification) 3,000,000 shares of com(par*five cents). Price—'10 cents per share.

Jan.
common

Price—$2 per share. Proceedsbuilding sites, equipment and inventory,
and for working capital.
Office — 405 Globe Bldg.,
Pittsburg, Kansas. Underwriter—Aetna Securities Corp.,

Feb.

Sectirities Corp., Las Vegas, Nev.

Silver Reef Uranium

purchase

New

stock

mon

stock.

Ready-Made Buildings, Inc. (2/28-3/4)
Feb. 8 (letter of notification)
150,000 shares of
stock

same

Nov. 22

Mining Corp. of Canada, Ltd.

(Regulation "D") 242,850 shares of
Price—$1 per share. Proceeds — For
general corporate purposes. Underwriter — James An¬
thony Securities Co., New York.

To

St., Salt Lake

Underwriter—Doxey Investment Co.,

Silver Pick

18 amendment

common

Price—At par ($1 per share). Proceeds—For min¬
Office—64 East 4th South

expenses.

City, Utah.
city.

Securities Corp., New York.

(par

For production

$7,500,000

share for each

new

per

it Saaty Fuel Injector Corp., Providence, R. I.
11 (letter of
notification) 800 shares of common
stock (par $1). Price—At
market (estimated at $12 per
share). Proceeds
For working capital.
Office—1050

Reserves, Inc., New York (3/10)

shares

($25

par

Feb.

offered in units of $750
principal amount of debentures,
10 shares of preferred stock and 100 shares of
common
stock.
Price—To be supplied amendment.
Proceeds—

tor

and

filed

100,000

(par $1—

Canadian; oemg oiiered as "speculative" securities
for
subscription by common stockholders of record Jan.
26,
1955, on a share-for-share basis;
rights will expire on
Feb. 28.
Price—$2 (Canadian) and $2.06 (U. S.)
per
share.

14

1,000,000 shares of

Canada

stock

Petroleum

Price

-Underwriter—None.
New

•

one

expire on March 4, 1955. Price
share). Proceeds — For purchase of
machinery and equipment. Office—Fairview Place, Ber¬
lin, Conn. Underwriter—None.

(letter of notification) 2,500,000 shares of capital
stock (par two
cents). Price—10 cents per share. Pro¬
ceeds—For exploration and
development costs. Office—
230 Fremont St., Las
Vegas, Nev. Underwriter—Allied
Underwriter Co.. the same city.
Feb.

Products, Inc., Berlin, Conn.
(letter of notification) 5,727 shares of common
being offered for subscription by stockholders of

28

—At

Oct. 15

.

24

record Feb. 1, 1955 at the rate of
two shares held; rights to

by

Boston

"

($10

Feb

stock

.

pre¬

"

&

Rowland

Jan.

Proceeds—For exploration and
development operations.
Paramount Uranium
Corp., Moab, Utah
Office—Ernest and Cranmer Bldg., Denver,
Colo^jUir^ ^ OcL 7 <letter of notification) 6,000,000 shares of capital
derwriter—Investment Service Co., same city.
y stock. Price—At
par.(five cents per share). Proceeds—
★ Moran Electronic
;
For mining expenses; "Office—325 Main
Components, Inc.,
.
St., Moab, Utah.
Kensington, Md.
."".-.'--i
"-.'""''r'''' V Underwriter—Van Blerkom & Co., Salt Lake City, Utah.
Feb. 15 (letter of
notification) 100 shares of common
Pay Day Uranium Co., Las Vegas, Nev.
stock
(no par) and 4,000 shares of 7% cumulative
ferred stock. Price—Of
preferred, at par

Stroud

Gas

competitive bidding.
Probable
Corp. and Halsey, Stuart &
Co. Inc. (jointly); Blyth &
Co., Inc. Bids—Expected to
be received on March 2.

com¬

and

Co., Inc. (jointly);
Co.; Union Securities Corp., Equitable Secu¬
Glore, Forgan & Co. (jointly); Blyth &
Co., Inc.; The First Boston Corp. and Smith,
Barney &
Co. (jointly). Bids—To be received up to 11 a.m.
(EST)

Underwriters — Blyth & Co., Inc., San
York; and Hornblower &

bidders: Th6':Flfgt

share.

Hutzler

rities Corp. and

& Electric Co.
(3/2)
Feb. 14 filed $50,000,000 of first and
refunding mortgage
bonds, series Y. -due Dec. 1, 1987. Proceeds—To retire
bank loans aha'* for" new construction.
Underwriter—

share.

&

Shields &

deben¬

Qn

Pacific

Bros.

mon

Proceeds—

capital

New

Npw York.
New Ynrlr

Virginia

per

outstanding $9,000,000

1973.

To

(par five cents).

Price—To be supplied by amendment.

redeem

Francisco

com¬

Montezuma Uranium, Inc.,
Denver, Colo.
Jan. 5 (letter of
notification) 3,000,000 shares of
mon

$14,000,000 of 4V2% capital debentures

tures due

expenses.

St., Reno, Nev.

Probable bidders:
Hateey, Stuart & Co. Inc.; Kidder,
Peabody & Co. and White,* Weld & Co. (jointly); Salo-

(3/14)

Feb. 21 filed

39

.

city.

.

*■

it Solomon & Gelman, Inc., N. Y.
Feb. 9 (letter of
notification) an aggregate value of ap¬
proximately $60,000 of common stock.
Price—$306.12
per share.
Proceeds—For operational and development
costs. Office
247 West 46th
St., New York 36, N. Y.
Business—Publications for consumption by children and
the general public.
Underwriter—None.
—

Solomon
Oct.

Uranium & Oil

Corp., Inc.

7

mon

stock

(letter of notification) 2,000,000 shares of com¬
(par one cent). Price — 10 cents per share.
Proceeds—For mining expenses. Offices
506 Beason
Bldg., Salt Lake City, Utah, and 1016 Baltimore Bldg.,
Kansas City, Mo. Underwriter—E. R. Bell &
Co., Kansaj
City, Mo.
—

it South Broadway Lockers, Inc.. Englewood, Colo.
10 (letter of
notification) 36,900 shares of common

Feb.

stock.

Price—At par ($1 per share).

Proceeds—To pay

Continued

on

page

40

-

4b

The Commercial and Financial Chronicle

(952)
••=

,

■

4509 South Broadway, Englewood,

Colo.

None.

Telephone Co.,

* South Carolina Continental
Sumter, S. C.
,

,

(letter of notification) 12,000
cumulative preferred stock.
Price —
Feb.

14

_

„

shares of 5%%

At par ($25 per
share). Proceeds —-For improvements and additions to
property.
Underwriter — Carolina Securities Corp.,
Charlotte, N. C.
South Carolina
Feb. 2 filed 210,053
to

(2/25)

shares of common stock (par $4.50)
by common stockholders
the basis of one new share for each

for subscription

offered

be

Electric & Gas Co.

of record Feb. 24 on

(with an oversubscription privilege);
rights to expire on March 10. Price—To be supplied by
amendment.
Proceeds—For new construction program
and to furnish a portion of additional equity capital re¬
quired by South Carolina Generating Co., a subsidiary.
Underwriter—Kidder, Peabody & Co., New York.
held

shares

15

(letter of notification) 28,000 shares of common
10 cents) being offered in exchange for

Jan. 24

stock

(par

capital stock (par $1) on the basis
of 33/2 Southeastern shares for each Hamilton share. This
Hamilton Gas Corp.

offer shall terminate when offer shall have been accept¬

in excess of
8,000 shares of Hamilton stock. Office—70 Pine St., New
York 5, N. Y.
Underwriter—None.
ed

Hamilton stockholders owning not

by

^Feb. 21 filed 75,000 shares of cumulative convertible
Price—To be filed by amend¬

Proceeds—For

ment.

new

construction.

cisco, Calif.

t

■•k Southern Union Oils, Ltd.

(3/1)

Fpb. 16 filed 1,211,002 shares of common stock (par $1)
shares are to be offered for subscription
by existing stockholders on a basis of one new share for

of which 511,002

each share held.

Price

—

To

stockholders, 50 cents

per

share; and to public, 60 cents per share. Proceeds—For
exploratory and developmental expenses; for possible
acquisition of additional oil and gas interests; and to
meet

current

liabilities.

Office—Toronto, Canada.

derwriter—Willis E. Burnside &

Un¬

Co., Inc., New York.

■fa Southwestern Virginia Gas Service Corp.
Feb. 14 (letter of notification) $50,000 of 5V2% series E
debentures due March 1, 1978. Price—96% of principal
amount.

Proceeds—To retire bank loqn and for working

capital. Office—Martinsville, Va. Underwriters—Bioren& Co., Philadelphia, Pa., and C. T. Williams &
Co., Inc.,
Baltimore, Md.
Star Uranium Corp., Salt Lake City, Utah
Aug. 2 (letter of notification) 6,000,000 shares of com¬
mon stock (par one cent).
Price—Five cents per share.
Proceeds
For exploration and development
costs
—

Underwriter—Ned J. Bowman Co., Salt Lake City, Utah

Stardust, Inc., Reno, Nev.
July 9 filed 621,882 shares of preferred stock (par $10)
and 621,882 shares of common stock (par one cent) to be
offered in units of

—$10.01

per

one snare

construct and

equip

a

luxury hotel. Underwriter—None.

^ Suit Hotel, Inc., Las Vegas, Nev.
./
Feb. 16 filed 760,000 shares of pfd. capital stk. (par $9.50)
and" 1,540,000 shares of common capital stock
(par 25

f.ents), of which 680,000 shares of preferred and 1,360,000
shares
two

are

to

be offered

in

units of One preferred

and

shares; the remaining 80,000 shares of pre¬
ferred stock and 180,000 shares of common stock
may
be exchanged for properties. Price—$10 per unit. Pro¬
ceeds—To purchase property; for construction of
hotel;
and for working capital.. Underwriter—Coombs &
Co.,
Salt Lake City, Utah.
common

Superior Uranium Co., Las Vegas, Nev.
Sept. 1 (letter of notification) 29,910,000 shares of com¬
mon stock.
Price—At par (one cent per share). Proceed!
—For development and exploration costs. Office—Medi¬
cal Arts Bldg., Las Vegas, Nev. Underwriter—Uranium
Brokers, Inc., the same city.

holders

the basis of

on

one new

(letter of notification) 3,500,000 shares of comstock, (par- 2% cents)- Price- $ cents per share

Proceeds—For

exploration, and development expenses*
Office—39 Exchange j*lace, Salt Lake
City, Utah. Un:

m-.

der^fUer—Walter Sondrup,




,

same city.

Vegas,

Las

Nev.

•>.,

•

k

(par three cents). Priee—Six cents per share.
exploration and development expenses.

Utah Uranium Corp., Las Vegas, Nev.

share for each two shares

Aug 20 (letter of notification) 10,000,000 shares of capi¬
tal stock (par 1 cent).
Price — Three cents per share.

Rights to expire sometime in March, 1955.

Proceeds—For

Vada Uranium Corp.,

Feb. 17 filed
be

Price—At

par

(one cent

com¬

Webster

Feb.

^

West Coast Pipe Lint Co.K Dallas,

Weld &

purposes.

Corp.

Western

/

1,188,000 shares of com¬
(par one cent). Price—25 cents per share.
Proceeds—For mining expenses. Office—701 Ernest and

Jan.

Cranmer

Building, Denver 2, Colo. Underwriter—Car¬
roll, Kirchner & Jaquith, Inc., same city.

•

(3/2)

Jan. 31 filed

31

;

j

j

—

•

:

*

Westport Properties Corp., Kansas City, Mo.

City, Mo.

Corp., Denver, Colo.

(letter of notification) 4,133,329 shares of com¬
mon stock (par one cent), of which 2,133,329 shares are
covered by an offer of rescission to 37 shareholders at
three cents per share; and. 2,000,000 shares are to be

[

;

Hills

filed 479,158 shares of common stock (par $1)
being offered for subscription by stockholders of Chi¬
cago, Aurora & Elgin Ry. Co. at rate of one Westpoft
share for each Chicago, Aurora & Elgin share held as of 4
Feb. 17; rights to expire on March 8. Price —$2t per
share. Proceeds-—To repay bank loans and for working
capital. Underwriter—George K. Baum & Co., Kansas

York.

j
-

filed

Jan. 27

70,000 shares of common stock (par $5), of
which 8,538 shares are to be offered by the company and
61,462 shares by certain selling stockholders. Prices—To
be supplied by amendment.
Proceeds — For working
capital and general corporate purposes. Office—Canton,
Ohio.
Underwriter
Granbery, Marache & Co., New,

White

V

if-

.

(3/10)

Canyon Mining Co.

•>

-

J

.stock (par 33%. r '
Proceeds—To repay loans ;
capital acquisitions; and for expendi*
r
tures and working capital. Office — Dove Creek, Colo.
Underwriters^-Joseph McManus <& Co., New York; and
A. P. Kibbe & Co., Salt Lake City, Utah. ...
Feb • 4 filed 3,000,000 shares of common

cents).

Price-—$1 per share.

*

and advances; for

publicly offered at 10 cents* per share. Proceeds—For
mining expenses. Underwriter—John L. Donahue, 430
16th» Street, .Denver 2, Colo.
*

.

Universal Petroleum Exploration & Drilling Corp.
Oct. 4 (letter of notification) 300*000 shares of eommoa

:

>

Price

Winfield Mining Co.,

Moab, Utah. - , g ^,
Jan.' 20 (letter of notification} 500*000 shares of common'
stock (par five cents). Price—-26 centspersharerProceeds—For mining expenses.
Office—M. Lu C, Bldgi,,
Pi O. Box,648, Moab, Uiahtv Underwiiter^rSecurity
mum Service'i
Oi V. Or Biife-, Provo^Uiah.
*
* -

*

,

Securities

Inn, Fort Worth, Texas
200,000 shares of capital stock (no par).
Price—$5 per share.
Proceeds—Together with other
funds; to construct, furnish and equip hotel to be, built
between Dallas and Fort Worth, Texas.
Underwriter—
Schwanz & Co., Inc., Aurora, 111.
*
°
I

stock

At bar ($1 per share), Proceeds* — For
cosfbfr Driller Boy (drilling equipment which company
rents out), .and working capital,
Office—c/o Edwin J.
/
Dptson, attorney-at-l^wfaSimon
* 230 JYehiopt St./

Union

Pipd Line Co., Dallas, Tex.
Nov. 20, 1952 filed 1,125,006shares of common stock-(par
50 cents). Price—To be supplied by amendment. Proceeds—Together with other funds, to be used to build
pipeline. Underwriters—White, Weld & Co. and Union
Securities Corp., both of New York.
Offering—Post¬
poned indefinitely.

Underwriter—Dil¬

Co.

and

West Cbast

(letter of notification)

Tile

Co.

Corp., both of New
York. Offerhig^Ppstponed indefinitely.
'

lon, Read & Co. Inc., New York.

sto^k.

*

$66-,080,000 first mortgage bonds to be used to build
1,630 mile crude oil pipeline. Underwriters — White*

$10,000,000 of promissory
notes and $5,000,000 of 3.70% purchase money obliga¬
tions (the latter at 103.45%); to redeem at $102.50 per
share all of the outstanding $3.75 cumulative preferred
shares, series A; for exploration and development of oil
and gas properties and for other property additions;

United Uranium

'

Price—To be supplied;by
ProceedSr—From sale ei units and 1,125,000

amendment.

-

prepay

Ceramic

G

tore and one share of stock.

(3/2)
Feb. 10 filed $60,000,000 of convertible debentures due
1975 (subordinate).
Priee—To be supplied by amend¬

United States

tex.

additional shares, of common stock and; private; sales ' of;

Union Oil Co. of California

Uranium

j

(par 50 cents) to, be offered in units of one $50 deben- >

—

7

I

-

20, 1952 filed $29,000,000 12-year 6% debenture*
due Dec. 15, 1964, and 580,000 shares of comm0n* storit-

(letter of notification) 15,000,006 shares of com¬
mon stock (par one cent).
Price—Two cents per share.
Proceeds
For exploration: and development costs.
Office—424 Judge Bldg., Salt Lake City, Utah. Under¬
writer—James E. Reed Co., same city.

United-Canadian

j

Nov.

Oct 5

Feb.

I

■

Bldg., Salt Lake City, Utah. Un¬

corporate

j

•

8

Nov.

Uranium, Inc., Salt Lake City, Utah. *

for general

-

Wenga Copper Mines, Inc., N. Y.
'-"irJ
18
(Regulation "D") 900,000 shares of common
stock (par five cents). Price—30 cents per share. Pro¬
ceeds—For general corporate purposes.
Underwrite*—
Willis E. Burnside & Co., New York.

com¬

derwriter—Western Securities Corp., the same city.

and

'

,

(letter of notification) 3,000 shares of common
stock (par $1). Price—$13.25 per share. Proceeds — To
selling stockholder. Underwriter — Bacon, Whipple &
Co., Chicago, 111.

(par one cent). Price — 10 cents per share.
Proceeds—For exploration and development costs. Of-

Proceeds—To

v

Uranium

^ Weco Products Co., Chicago, III.

stock

ment.

share, for each

new

.

City, Utah
Sept. 13 (letter of notification) 2,800,000 shares of

Uintah

stockholders of

common
one

+

com¬

Ucolo Uranium Co., Salt Lake

flce—906 Walker Bank

by

the rate of

Mines, Ltd., Toronto, Canada
Dec. 30 (regulation "D") 300,000 shares of common stock
(par 10 cents). Price—$1 per share. Proceeds—For general corporate purposes.
Underwriter—James Anthony
Securities Corp., New York.

Pro¬
ceeds—For exploration and development costs.
Office
—358 S. 3rd St. East, Salt Lake City, Utah. Underwrite!
—Western Securities Corp., same city.

mon

at

Washington, D. C.

per

ceeds—For

Transcontinental* Uranium Dorp; .•
Oct. 1 (letter of notification) 2,990,000 shares of
mon stock.
Price—At par (10 cents per share).

March 7

eight shares held; rights to expire on March 23. Price*—
To be supplied by amendment. Proceeds—For additions
and improvements to property. Underwriters—The First
Boston Corp., New York; and Johnston, Lemon'& Co.,

City, Utah. Underwriter—Melvin G. Flegal & Co.,
city.

stock.

offered for subscription

record

share). Pro¬
mining expenses.
Office—1122 Mile High
Center, Denver 2, Colo. Underwriter—Robert W. Wil¬
son, 1717 East Colfax Ave., Denver, Colo.

mon

.

^ Washington Gas Light Co. (3/8)
r
:
126,349 shares of common stock (no par) to

Lake City, Utah

Tip Top Uranium & Oil, Inc., Denver, Colo.
1 (letter of notification) 30,000,000 shares of

G-/

Idaho

(letter of notification) 1,500,000 shares of com¬
mon stock.
Price—At par (five cents per share). Pro¬
ceeds—For expenses incident to mining operations. Address—P. O. Box 289, Wallace, Idaho. Underwriter—Alden J. Teske, d/b/a Wallace Brokerage Co., Samuels
Hotel, Wallace, Idaho.

stock

Feb.

Underwriter—Bristol Securities Co., Fall

Vulcan-Uranium Mines, Inc., Wallace,

(letter of notification) 22,000,000 shares of capi¬
tal stock. Price—At par (one cent per share). Proceeds
For mining expenses. Office—2507 South State St., Salt
same

Ely, Nev.

Oct. 15

Jan. 31

Lake

expenses,

Nev. Underwriter

17

St., Ely, Nev.
River, Mass.

Proceds—To construct and operate a manu¬

Thunderbolt Uranium Corp., Salt

and development

(letter of notification) 2,000,000 shares of com¬
mon stock (par one cent).
Price — 15 cents per share.
Proceeds—For mining expenses.
Office—280 Aultman
Jan.

(letter of notification) 1,800,000 shares of com¬
(par 10 cents). Price — 15 cents per share.
Proceeds—For mining activities. Office—206 N. Virginia
St., Reno, Neb. Underwriter—Stock. Inc., Salt Lake Citv
mon

exploration

Office—1818 Beverly Way, Las Vegas,
—First Western Securities, same city.

Thunderbird Uranium Co., Reno, Nev.

mon

Oct. ,7

Corp.,

Proceeds—For

Jan. 26

raon

Securities

: >
f
(letter of notification) 3,000,000 shares of capi¬

Oct. 18

—

5

Felt

Utah Apex Uranium Co.

Aug. 3

com¬

Shelley Co., Denver; Colo..

Price—Five cents per share.
development costs. Of¬
Building, Salt Lake City, Utah. Under¬

writer—Western

facturing plant near Orange, Tex., for the purpose of
manufacturing insulation building products.
Under¬
writer—Emerson Cook Co., Palm Beach, Fla.

City, Utah.

Temple Mountain Uranium Cos...

>

stock (par one cent).

fice—420

Texboard, Inc., Dallas, Texas
17 filed $1,500,000 of 6% series A debentures due
serially from Feb. 1, 1957 to Aug. 1, 1961, and $1,000,000
of 6% series B convertible debentures due serially from
Feb. 1, 1962 to Aug. 1, 1966.
Price—To be supplied by

Sytro Uranium Mining Co., Inc., Dallas, Texas

—E. I.

;

Proceeds—For exploration and

Jan.

stock (par five cents). Price—10 cents
per share.
Proceeds—For exploration and development of
proper¬
ties;
Office—1406 Life of America Building, Dallas,
Texas.
Underwriter
Western Securities Corp., Salt

G

7

.

of com¬

(letter of notification) 6,000,000 shares

Oct.
mon

Price—
$2.75 per share to stockholders; $3.15 per share to public.
Proceeds—To pay off outstanding debts. Underwriter—
Creton H. Funk & Co., San Antonio, Tex.

mon

Tacony Uranium Corp., Denver, Colo.
Aug. 17 (letter of notification) 1,700,000 shares of com¬
stock.
Price—10 cents per share.
Proceeds—Fox
exploration and development expenses.
Office —317
Railway Exchange Building, Denver, Colo. .Underwriter

;
-

Office—430 Judge Bldg., Salt Lake City, Utah. Under¬
writer—Mid-Continent Securities, Inc., same city.

Uranium Corp., Salt Lake City, Utah
(letter of notification) 2,500,000 shares of com¬
(par three cents). Price—10 cents per share.
Proceeds—-For exploration and development expenses.
Office—Newhouse Bldg., Salt Lake City, Utah. Under¬
writer—Guss & Mednick Co., same city.

Lake

city.

Inc., Salt Lake City, Utah

tal stock

5

„

Utaco Uranium,

^ Texas Power Corp., Sequin, Texas
Feb. 16 (letter of notification) 41,600 shares of common
stock (par $1) to be offered for subscription by stock¬

stock

Sept. 9 (letter of notification) 2,975,000 shares of

—Wallace Brokerage Co., same

forts" basis.

Swedes

mon

Wallace, Idaho
(letter of notification) 1,000,000 shares of capi¬
tal stock.
Price—At par (five cents per share).
Pro¬
ceeds—For core drilling program upon two groups of —
claims.
Address—Box 709, Wallace, Idaho.
Underwriter

supplied by amendment. Proceeds—For exploration
and drilling, and payment of bank loans and advances.
Underwriter—Vickers Brothers, New York, on a "best ef¬

mon

Jan.

*

.

Las Vegas, Nev.

Development Co.,;*"

Uranium Discovery &

be

of each class of stock. Price

unit. Proceeds—For purchase of land and to

Fisher jJn-

Nev.. Uhderwriter^Robert B.

Nov. 16

June 21 filed 455,000 shares of common stock (par 10
cents), of which 385,000 shares are to be offered for
subscription by common stockholders at the rate of one
new share for each 4%
shares held; and 70,000 sharei
are for account of certain selling stockholders. Price—To

Underwriters—

William R. Staats & Co., Los Angeles, Calif.; Hornblqwer
& Weeks, New York; and First California Co., San Fran¬

Vegas,

vestments, 510 South Fifth St.;

International Sulphur Co.

amendment.

£ Southern Nevada Power Co.,
Las Vegas,N Nev. (3/15)
preferred stock (par $20).

Texas

held.

Service Co.

Public

Southeastern

Las

notification) "56,000 shares of common
be offered for subscription by stock¬
holders on the basis of eight new shares for each five
shares held; rights to expire some time in March, 1955.
Price—$2.35 per share to stockholders; $2.70 per share
to public.
Proceeds—To pay interest on bonds and de¬
bentures, taxes, bank loan and insurance premium.
Underwriter—Creston H. Funk & Co., San Antonio, Tex.

to pur¬
Office
Underwriter—

chase

Hydro Electric Corp., Sequin, Texas

Feb. 16 (letter of
stock (par $1) to

long term indebtedness and takfc up option
property and also expand the business..

off

Thursday, February 24, 1955

.1

Texas

Continued from page 39

...

.

.

/

J
>
>

;

Volume

181

Number 5406 .'.

.

The Commercial and Financial
Chronicle

(953)
Woman's Income Fund, Inc.,
Baltimore, Md. Jan. 28 filed 500,000 shares of
capital stock. Price—At
Market.
Proceeds—For investment.
Underwriter—In¬
...

come

Managers Inc., New York, which is under the di¬
of its
President, Pierre A. DuVal, of DuVal's

rection

Consensus Inc.

World

10

cents).

stock

(par

cent).

one

Price —Three

com¬

cents

pel

Proceeds—For exploration and
development ex¬
penses.
Office—323 Newhouse bldg., Salt Lake
City,
Utah. Underwriter—P. G. Christopulos &

Co.,

same

city.

Wynn Pharmacal Corp.
common

(letter of notification) 85,000 shares of class B
stock (par 10 cents).
Price—$2.50 per share.

Proceeds

—

For

production,

development and sale of
capital and other corpo¬
purposes.
Office—5119 West Stiles St., Philadel¬
phia, Pa. Underwriter—Charles A. Taggart &
Co., same
city.
company's

it Wyoming Minerals Corp.,
Thermopolis, Wyo.
(letter of notification) 250,000 shares of common
stock.
Price—$1 per share. Proceeds—To pay current
Feb. 16

bills and purchase
equipment and supplies.

—H. P.

Underwriter

Jesperson, 2111 Nicholas St., Omaha, Neb.
Wyoming Uranium Corp., Salt Lake City, Utah

Aug. 23 (letter of notification)
9,166,667 shares of com¬
mon stock
(par 1 cent). Price—Three cents
per share.
Proceeds—For exploration and
development expenses.
Underwriter—James E. Reed Co., Salt Lake
City, Utah.
•
Zapata Off-Shore Co.,
Houston, Texas
Feb. 14 filed
315,000 shares of common stock (par 50

cents.) Price—To be supplied
by amendment (expected
at $5.50 per
share). Proceeds—For equipment and work¬
ing capital. Underwriter—To be named
by amendment
<may be Underwood, Neuhaus &

Co., Houston, Texas).

Zenith Uranium &
Mining Corp.
July 12 (letter of notification)

(par

one

cent).

300,000 shares of common
Price—$1 per share. Proceeds—

mining operations.
Boston, Mass.
•

:

i..

•'

,.

Underwriter—Sheehan

&

Co.,

Bids—Expected to be received up
Registration—Scheduled

Prospective Offerings
-

preferred

of

bonds

■

Alabama Power Co.
(5/31)
Dep. 30 it was announced

due

Corp.

(EST)

on

a.m.

company plans to issue and
first mortgage bonds due 1985. Proceeds
bank loans and for construction

program.

Feb. 10 company
offered 1,367,440 shares of 6% convert?ible preferred stock
(par $10) in exchange for the out¬
standing 136,744 shares of-5%% cumulative
preferred
stock, series A (par $100) on the basis of ten shares
of
<6% stock for each 5V2%
preferred share held. DealerManager—Kidder, Peabody & Co., New York.,
American Telephone &
Telegraph Co.
Feb. 16 directors voted to
recommend to stockholders
that they authorize a new issue
of not to exceed

$650,000,debentures at their annual
meeting to
April 20.
When issued, each stockholder

convertible
on

would receive rights to
purchase the debentures in pro¬
portion to his holdings of stock
(probably on the basis
of $100 of debentures for each
eight shares of stock

held). Underwriter—None.
* Arkansas Power & Light Co.

(3/30)
17 it was announced
company plans to issue and
93,500 shares of cumulative preferred stock
(par
$100). Price—$105 per share.
Proceeds—Together with
Feb.

sell

Atlantic Coast Line

$13,474,000

mortgage Zlk% bonds, series
X, due Aug. 1, 2002. Purpose—To reimburse
treasury,
in part, for capital
expenditures already made. Under¬
writer—None. Bonds are to be held in
company's treas¬
ury subject to further order of the Interstate
Commerce
Commission.

It is not proposed to sell
of the series X bonds at this time,

pose

that

these

bonds

will

be

ever

otherwise dis¬

or

nor

issued

as

possibly in pledge.
•

except

Atlantic Steel Co.,

Atlanta, Ga. (3/15)
was reported
company plans to issue and sell
200,000 shares of common stock (par $5). Proceeds—
For capital expenditures.
Underwriter—Courts & Co.,
Atlanta, Ga.
■

-

Baltimore & Ohio RR.
Feb. 10 company received ICC
exemption from competi¬
bidding of up to $345,000,000 of new securities. Pro¬

tive

ceeds—For

refunding. Underwriter—Feb. 16, Howard E.
President, announced Glore, Forgan & Co.,

Simpson,
Halsey, Stuart & Co. Inc.
been

engaged

to

looking towards
a

and Alex. Brown & Sons have

continue

studies and formulate
plans
simplification of the railroad's debt
reduction in over-all interest costs.
a

Catalin Corp. of America

Feb. 2 it

(3/15)

reported that company plans to offer pub¬
licly 50,000 shares of convertible preferred stock
(par
$20). Registration—Expected late in
February. Under¬
was

(3/9)

it

announced company plans to offer to its
stockholders the right to subscribe for one new
share; of common stock for each
five; shares held." Price—
was

common

To be/determined

cceds-^-Far

new

shortly before offering is mad&.' Proconstruction and general corporate
pur¬

poses.

Chicago, 111., and City Bank
Farmers Trust Co., New
York, are exchange agents.
•

Chicago, Rock Island & Pacific RR.*
Jan. 11, J. D.
Farrington, President, announced that the
directors have authorized the issue and
sale of not more
than $65,000,000 of
40-year income debentures. Proceeds
—To redeem its
outstanding preferred stock
shares).

Underwriter

petitive

bidding

holders

of

rule
preferred

stock

on

a

was

—

(about 620,Exemption from the com¬

received

stock

convert

on

Feb.

their

17.

If

shares

all

into

share-for-share basis there will be

debenture sale.

J

3

it

i

than 30
years the founders of Pandick

personally maintained

and guaranteed the firm's

©f
quality. They are still
printing requirements. r'

Press, Inc. have

high standards

available at all times to discuss
your

PesUo+uUiyed S&uuce. is one of the reasons "Printed by
Pandick" guarantees the finest and
most complete
printing

*




construction, which, it is estimated,
$125,000,0000 in 1955. Underwriters—
financing were The First Boston Corp.
Forgan & Co.

Consolidated Uranium Mines, Inc.
July 23 stockholders authorized the issuance and sale
convertible debenture bonda

Detroit Edison Co.

71 CLINTON ST.,

NY 1-3167

new

cost about
For last equity
and Glore,

—

Established 1925

77 THAMES ST., NEW TORK
6

Proceeds—For
will

acquisition of Uranium Mines of
America, Inc. stock. Public offering of $2,000,000 bonds
expected early in 1955. Underwriter
Tellier & Co.,
Jersey City, N. J.

andiefnpress, Inc.
WOrth 4-2900

Commonwealth Edison Co.
Jan. 24, Willis
Gale, Chairman, announced it should be
Fall before the
company undertakes its next financing.

of not to exceed
$6,000,000
in connection with the

service available.

NEWARK, N. t

MArkef 3-4994

•

Jan.

21

vote

on

was

Co.

(5/10)

announced

company plans to issue and
of first mortgage bonds
due 1985. Pro¬
ceeds—To retire bank loans
and for
construction pro¬
gram. Underwriter—To be
determined by competitive
bidding. Probable bidders:
Halsey, Stuart & Co. Inc.;*
The First Boston
Corp.; Lehman Brothers; Union Securi¬
ties
Corp. and Equitable Securities

$12,000,000

Corp. (jointly);
Morgan Stanley & Co.;
Kuhn, Loeb & Co.; Shields & Co.
and Salomon Bros. &
Hutzler
(jointly); Harriman Ripley
& Co.
Inc.; Blyth & Co., Inc. and
Kidder,

(jointly). Bids—Expected

(EST)

to

Peabody & Co.

be

received up to

11

a.m.

May 10. Registration—Scheduled for
April 13.
Giddings & Lewis Machine Tool Co.

Feb.

on

15,

the

stockholders
approved ' a' proposal- to
authorized common stock
(par $2) from
400,000 shares (360,000 shares
outstanding) to 750,000
shares, in order to have additional shares
which would
be available for
acquisition of any
business, increased
working capital, plant expansion or
exchange of shares
in other
companies. Underwriter
Previous
financing
handled by Hornblower &
Weeks and associates.
increase

the

—

Corp.
(

Alberty, Executive

Vice-President, an¬
nounced that the
company will have another stock
issue
in the near future.

Proceeds—For expansion. Under¬
writer—Eisele & King,
Libaire, Stout & Co., New York,
handled previous
financing.
Hanover
Jan. 12 it
on

Fire

was

part

Insurance Co.

announced

authorizing

an

of

stockholders will vote March 7

offering to stockholders during the

March

of

100,000 additional shares of
capital stock on the basis of
one new share for
each
four shares held.
Price—To be named later.
Proceeds—
To expand activities
in the
casualty and multiple line"
fields.
Underwriters—The First Boston
Corp. and R. W.
Pressprich & Co., both of New
York.

it

announced stockholders on
May 2 will
authorizing about $60,000,000 of convertible de¬

bentures.

14 it

,

was

announced stockholders will
vote March
issuance and sale of
$1,500,000 convertible deben¬
tures due 1965, first to
preferred and common stock¬
holders at rate of $25
principal amount of debentures
for each three shares
held. Underwriter—None.
Offer-*'
ing—Expected in May or June, 1955.
' •
Horseshoe Bend
Uranium, Inc.
Feb. 1 it was announced
that company
plans to issue
and sell 150,000 shares of
common stock.
Price—$2 per
share. Proceeds—For
exploration and
16

on

development ex¬
Underwriters—James Anthony Securities
Corp.,
York; Lawrence A. Hays Co.,
Rochester, N. Y.;
and Ned J. Bowman
Co., Salt Lake City, Utah.
Illinois Central
Telephone Co.
penses.

New

Jan. 26 it

was

was

Previous offer of convertible debentures
made to stockholders without
underwriting.

was

reported company plans to sell in
Illinois

only, 15,000 shares of 5V2% cumulative
preferred stock
(par $50).
Underwriter—Central Republic Co.
(Inc.),
Chicago, 111.
* Industrial

was

announced company plans to offer to its
stockholders of record Jan. 31, 1955 the
right to subscribe
for 20,000 additional shares of
capital stock on the basis
of one new share for each
two shares held.
Price—$50
per share.

more

it

it Hartford Gas Co.

Jan. 25 the
company's offer of $15,336,480 of 5% income
debentures due Jan. 1,
2054, in exchange, par for par,
for the
outstanding 383,412 shares of class A stock (par
$40) was extended to expire on March
1, 1955. City
National Bank & Trust Co.,

■Feb.

30

Feb.

Chicago & Eastern Illinois RR.

000

was

Georgia Power

latter

it Chicago Corp.
14

Chicago, III.

it

Gulf Cities Gas
Jan. 17, D. L.

ler; Kidder, Peabody & Co.; Blair & Co. Incorporated.
Feb.

16

Dec.
sell

Jan. 24 it

V

announced
company contemplates that
additional financing in the form
of additional bank
loans,
subordinated debt and/or
additional preferred stock
will
be effected in the
coming year.
With this
thought in
mind the directors have
proposed an amendment to
the
chapter to create additional shares of preferred
stock,
without par value.
Underwriter—Paine, Webber, Jack¬
son &
Curtis, Boston, Mass.

is it intended

such,

*

—

Feb.

RR.

Colonial Trust Co., New York

iti

.

—

Feb. 7 directors
approved a proposal to issue
of a new series of
general

no

For

♦

March 3.

common

,! f •

-

!

Flo-Mix Fertilizers
Corp., Houm?, La.
Feb. 7 it was
reported company plans
early registration
of
585,000 shares of common stock
(par 10 cents). Price
—Expected at $5 per share.
Proceeds—For equipment
and working
capital. Business
Distributes fertilizers
and mechanical
applicators for their use.
Underwriter—
Charles W.
Tschirn, Delta Bldg., New
Orleans, La.
it General Finance
Corp.,

—
Expected to be received up to
March 30. Registration
Scheduled

writer—Fulton, Reid & Co., Cleveland, Ohio.

Underwriter—To be determined by
competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan
Stanley & Co.; Union Securities Corp., Equitable Securi¬
ties Corp. and Drexel & Co.
(jointly); The First Boston
Corp.; Lehman Brothers; Harriman Ripley & Co.
Inc.;
Blyth & Co., Inc. and Kidder,
Peabody & Co. (jointly).
Bids—Expected to be received up to 11 a..m.
(EST) on
May 31. Registration—Scheduled for
May 4.
* Alleghany Corp.
*
vt

held

—

Bids

11

-^Central of Georgia Ry.

be

Corp., Pasadena, Calif.
Feb. 23 it was
announced
company plans to file a
regis¬
tration statement soon with
the SEC for the
sale of addi¬
tional common stock to
raise
approximately $2,000,000 in
new
capital. Proceeds
For expansion
and
working
capital.
Underwriter—Blyth & Co., Inc., San Francisco
and New York.

1983.

Bids will be received
by the company up to noon (EST)
on March 9 at office of J.
P. Morgan & Co.
Incorporated,
23 Wall St., New York
8, N. Y., for the purchase from
it of $930,000 of equipment trust
certificates, series A, to
mature in 15 equal annual instalments.
Probable bid¬
ders: Halsey, Stuart & Co.
Inc.; Salomon Bros. & Hutz-

000

it ElectroData

for March 3.

—To

•

in
anticipation Pf
expansion of the
company's activities.
UnderwriterPrevious financing handled
by Greene & Co., New Y6tk.

& Co.; Equit¬

«^l/$)^0Q0,000
repay

★ Doman

Underwriter—To be
determined by competitive
bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Lehman Brothers and Stone
& Webster Securities
Corp. (jointly); Blyth & Co., Inc.
and Central Republic
Co., Inc. (jointly); Merrill Lynch,
Pierce, Fenner & Beane; Equitable Securities Corp. and
Union Securities
(jointly); White, Weld & Co.; The First
Boston

41

Helicopters, Inc. '
Feb. 17 Donald S. B.
Waters, President, announced stock**
holders voted to increase
authorized capital stock from
1,000,000 shares to 3,000,000 shares

Arkansas Power & Light Co.
(3/30)
Feb. 17 company applied to the
Arkansas P. S. Commis¬
sion for
authority to issue and sell $18,000,000 of first
mortgage bonds due 1985. Proceeds—To redeem a

structure and

.

hi i-.'.iV

$7

•

•

I

of

Corp., (joint¬
to 11 a.m. (EST)

March 30.

on

products, working

For

shares

(jointly); Lehman Brothers; White, Weld

rate

stock

47.609

and 45,891 shares of
$6 preferred rstock." Underwriter—To be determined,by
competitive bidding. Prob¬
able bidders: Blyth &
Co., Inc. and Smith, Barney & Co.

amount

share.

Dec. 23

redeem

like

Uranium

Mining Corp.
July 21 (letter of notification) 9,996,000 shares of
mon

to

stock

ly).

notification) 299,900 shares of common
Price—$1 per share. Proceeds—
For equipment,
drilling expenses and working capital.
Office—42 Broadway, New
York, N. Y. Underwriter—
E. M. North Co.,
Inc., same address.
(par

funds,

able Securities Corp. and Union
Securities

Woodland Oil & Gas Co., Inc.
Dec. 21 (letter of
stock

other5

Raw

Materials Corp., New York
reported that offering of
125,000 shares of
common
stock is soon
expected.
Proceeds—To selling
stockholders. Office—575 Madison
Ave., New York 22,
N. Y.
Underwriters—Milton D. Blauner &
Co.; Baruch
Brothers & Co.; and
Hallowell, Sulzberger & Co.
Feb. 21 it

was

it Jersey Central Power &
Light Co.,
<
was reported
company plans to issue and sell
$12,000,000 first mortgage bonds. Proceeds
To
.

Feb. 21 it

.

—

repay
bank loans and for new
construction. Underwriter—To
be determined
by competitive bidding.. Probable
bidders:
Halsey, Stuart & Co. Inc.; Blair & Co.
Incorporated; Leh¬

man

Brothers; Union Securities Corp.,- Salomon Bros.
&
and Merrill
Lynch, Pierce, Fenner & Beane
(jointly); White, Weld & Co.; Kidder,
Peabody & Co.
Offering—Expected before the end of June.
Hutzler

it Jersey Central Power &
Light Co.

Feb. 21 it

was reported
company plans to sell
$5,000,000
preferred stock. Proceeds—For
construction program,
Underwriter—To be determined
by competitive bidding,
Probable bidders: The First
Boston Corp.; Merrill
Lynch,
Pierce, Fenner & Beane and
White, Weld & Co. (joint¬
ly); Glore, Forgan & Co.
Offering — Expected before
July i.

of

.

..

Continued

on

page 42

•

Commercial and Financial Chronicle
42

Continued jrom page

Jan.

sale nationally.

additional shares for

offer

to

date

company

being made to residents of Georgia only
Office—517 Stephens St., S.W., Atlanta,

Maine

Feb.

in

first mortgage collateral bonds

or

RR.

in

&

'

Feb. 14 it

was

*rf

r

Service

Public

12

Murphy
Feb.

8

it

vote

on

will

stockholders

announced

April 12

on

Underwriter

—

announced company plans to offer to its

was

shares of common stock on a l-for-3
basis, plus a warrant to buy an additional share ovfer a
10-year period. Underwriter—Paine, Webber, Jackson
& Curtis. Offering—Expected in March.
>
it Vanadium Queen Uranium Co.
was reported company plans to issue and' sell
720,000 shares of common stock. Price—Expected to be

Feb. 21 it

$2.50

share.

per

Underwriter—Van

New York.

People's
Jan. 31

Merrill Lynch,

Finance Corp., Denver, Colo.
it was reported company plans to issue and sell

6% convertible preferred stock. Pro¬
ceeds—For expansion. Underwriter—Paul C. Kimball &

Co., Chicago, 111.

Alstyne, Noel & Co.,

J.

West Texas Utilities Co.
Jan.

about $500,000 of

Pierce, Fenner & Beane, New York, handled preferred
stock financing- in 1942.

1955.

stockholders 124,667

reported company proposes issuance and

was

late in

Van Norman Co.

Electric Co.

Co. Inc.

a

expansion program.

it

■

reported company expects to sell about

was

repay bank loans and for new construc¬
Underwriter — To be determined by competitive

tion.

$7,500,000 of preferred stock later this year. Pro¬
ceeds—For construction program.
Underwriter—To be
determined by competitive bidding. /Probable bidders:
Kuhn, Loeb & Co.; W. C. Langley & Co. and Glore, For¬
gan & Co. (jointly); Kidder, Peabody & Co.; The First
Boston Corp.; Smith, Barney & Co.; Harriman Ripley &

proposal to increase the authorized limit of
indebtedness from $3,000,000 to $20,000,000.
Proceeds—
For

Electric Co. of Missouri

it

24

bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Blyth & Co., Inc. and Union Securities Corp. (jointly);
The First Boston Corp.; Lehman-Brothers and Bear,
Stearns & Co. (jointly); White, Weld & Co. and Shields
& Co. (jointly).
'
4

sale of

from

McKeesport, Pa.

Co.,

(G* C.)

was

stock

common

future.

Jan. 27 it
Feb. 21

reported company plans early registration

Proceeds—To

repay

Hfc Pennsylvania

for 1955 and replacement ot bank

$30,000,000 30-year, first mortgage bonds

Inc.

„

(4/1)

announced thai the

Radio Corp.

v/as

Union

Jan.

$9,300,000 of first mortgage bonds. Pro¬
bank loans and for new construction.
Underwriter—To be determined by competitive bidding,
probable bidders: Halsey, Stuart & Co. Inc.; The First
Boston Cdrp.; Kuhn, Loeb & Co.; Kidder, Peabody &
Co.; Equitable Securities Corp.; Harriman Ripley & Co.,

reported company stockholders will vote

increasing

on

Loeb, Rhoades & Co., both of New

later this year

Co.

program

Trav-Ler

near
>

M.

reported company plans to issue and sell

was

ceeds—To

530,000
§hares to 2,000,000 shares to provide for a 3-for-l splitup, and additional stock for future issuance.
Under¬
writer—May be Kidder, Peabody & Co., New York.
March

Carl

it Pennsylvania Electric Co.

_

Missouri

and

Feb. 15 it

^Missouri Pacific RR.
Bids are expected to be received fin March or April for
$3,765,000 equipment trust certificates due .1956-1970.
Probable bidders": Halsey,„Stuart & £o. Inc.; Salomon
Bros.* & Hutzler; Blair & Co. Incorporated; TCiddjer, Peabody & CO.

Sulphur Co.

of $4,500,000 subordinated convertible deben¬
(first to stockholders). Underwriter—Kuhn, Loeb

Co.

Line Corp.

$1,500,000 12-year convertible debentures with stock
purchase warrants (each $1,000 debenture to be accom¬
panied by 100 warrants). Underwriter—Straus, Blosser
& McDowell, Chicago, 111.
Registration — Expected in

,York.

& Co.,

_Jerrill Lynch, Pierce, Fennef & Beane; Blyth
Inc.; Glore, Forgan & Co. _*~

•

Feb. 21 it

March

tures

Pipe

000,000 of bonds will be sold iater this year (may be
privately). Underwriter—White, Weld & Co. and
Stone & Webster Securities Corp.

reported company is considering offer late

was

Gas

Waiicer, President,

of

American

Feb. 3 it

P.

done

early in March.
Pan

said company has
given up the idea of refunding the $17,000,000 5Vs%
first mortgage
and collateral trust bonds due 1978.
Probable bidders for new bonds may include Halsey,
Stuart & Co. Inc.; Kidder, Peabody & Co.; W. C. Langley
& Co.; Coffin & Burr, Inc.; The
First Boston Corp.;
not

Tom

24

borrowings made in 1954 wil require financing during
1955 of about $85,000,000. It is planned to offer publicly
about April 1 $15,000,000 of preferred stock. About $50,-

der, Peabody & Co.; Dominion Securities Corp.; Union
Securities Corp. Registration—Expected late in February

14, E. Spencer Miller, President,

Feb.

gas

Inc., New; York.

construction

to finance construction of a 1,400-mile
pipe line between Ingancio, Colo., and

funds,

was

Transcontinental

Nov.

Wash., on the Canadian border.
In addition,
1,549, 100 shares of common stock would be offered for
subscription by present stockholders who already own
700,000 shares. Underwriter—White, Weld & Co.; Kid¬

competitive bidding. Proceeds—To re¬
approximately $1,400,000 of 5% first mortgage
divisional bonds which were sold in 1952 through Blair
& Co. Incorporated, New York, and Coffin & Burr, Inc.,
Boston, Mass.
Central

•

it

12,

& Co.

Sumas,

sale without

Maine

interim

principal amount of notes and one share
Price—$70 per unit. Proceeds—Together with

of stock.

Corp.

reported that company plans to issue
and sell this year $20,000,000 of preferred stock and
$15,000,000 of common stock. Underwriter—Dillon, Read

units of $60

other

deem

•

Texas Eastern Transmission
Jan.

Line Corp.

May 1, 1956 (convertible into preferred stock
at maturity) and 287,000 shares of common stock (par $1)

natural

$1,700,000 of new 23-year
for

New York.

notes due

asked ICC for authority to issue

company

Northwest Pipe

pany's plan to offer publicly $17,220,000 of 6%

company

Central RR.

the

19

may

common

11, Federal Power Commission approved the com¬

.

reported

was

and/or

Pacific

plans to issue and
sell 500,000 shares of common stock.
Price—$2.75 per
share.
Underwriter—Van Alstyne, Noel & Co., New
York.
Registration—Expected in about 10 days. Offer¬
ing—May be late in March.
it

9

(which

money

Feb.

Co.

Oil

Kin-Ark
Feb.

publicly offer
262,750 shares of common stock. Proceeds—To reduce
long-term debt and to redeem 15,000 shares of 7% pre¬
ferred stock (par $100). Underwriter—Reynolds & Co.,

be done through sale of pre¬
stock). Underwriters—Probably
Central Republic Co.
(Inc.), Blyth & Co., Inc.; and
Merrill Lynch, Pierce, Fenner & Beane.
new

ferred

An

stock is presently
at $3 per share.
Ga.

offering of 16,666 shares of common

Feb. 7 it was announced company plans to

H. Mitchell, President, announced that the
plans to raise approximately' $12,WO,000 pf

D.

12,

Thursday, February 24, 1955

Storer Broadcasting Co.

Service Co.

Public

Indiana

Northern

41

Keystone Wholesale Hardware Co., Atlanta, Ga.
Jan. 27 it was stated that the company plans at a later

•

.....

(954)

it

5

was

reported

plans

company

the

sale

of

$7,000,000 30-year first mortgage bonds (probably in
May, 1955). Proceeds—To retire bank loans and for

Offering—Expected in April.

construction. Underwriter—To be determined by
competitive bidding. Probable bidders; Halsey, Stuart &
Co. Inc.; Blyth & Co., Inc. and Salomon Bros. & Hutzler;
Merrill Lynch, Pierce, Fenner & Beane; Equitable Se¬
curities Corp.; Glore, Forgan & Co.; Kuhn, Loeb & Co.
new

Public

it National Shares Corp.
it

Feb. 21

was

Nov. 11 it

announced company

plans to offer to its
of
the basis of one new share for

sell

stockholders the right to subscribe for 360,000 shares

capital stock (par $1)

on

each two shares held.
Proceeds—For

Price

—

To

be determined

Orleans

Feb.

it

4

Public

Service
that

announced

Southern

Inc.

Dec.

plans this year
1985. Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; White, Weld &
Co.; Blair & Co. Incorporated; The First Boston Corp.;
Equitable Securities Corp. and Union Securities Corp.
(jointly); Kuhn, Loeb & Co. and A. C. Allyn & Co. Inc.
(jointly); Kidder, Peabody & Co. and Stone & Webster
Securities Corp. (jointly); and Lehman Brothers.
issue

to

was

New York
Jan.

first

some

company

mortgage bonds

sell

due

17

Penn
it

competitive

&

Co.

(jointly);

Blyth

Mortgage
Cent

Three

Bonds

and

Due

&

July

1,

1960

July 1, 1945,
Security National Bank of
Greensboro, Raleigh,
Carolina, Tru6t.ee, there have been drawn
by lot for redemption and it is the intention

North

Pay and redeem on April

$4,000.00 principal amount of the above

bonds,

bearing Nos.

4—35—72—*89
The
bonds so designated for
redemption will
become due and payable on said
redemption
V

date

and

will

be redeemed on or
after that
office of the
Trustee, the SECUR¬
ITY NATIONAL BANK,
Raleigh, North Caro¬
lina, at par and accrued interest to
redemption
date.
All such bonds are
required to be pre¬
sented
for
payment and redemption at said
at

~l\cu

on

April

interest shall

thereon
ABERDEEN

AND

COMPANY

By: Forrest Lockey,
Dated: January 26,

cease

1,

1955,

Vice President




retail

stores
—

owned

Merrill

Western

Light & Telephone Co.f Inc.
24 it was announced company plans to issue and
$3,000,000 first mortgage bonds due 1985 and about
40,000 additional shares of common stock (the latter to
sell

stockholders

on a
l-for-10 basis). Proceeds—For con¬
struction program. Underwriters—May be Dean Witter
& Co. and The First Trust Co. of Lincoln, Neb.
Bpnds

be sold publicly or privately, depending on market
;

may

conditions.

...

Merrill

before that date.

Underwriter—Union Securities Corp.,
York, underwrote recent sale of Sinclair's holdings
of Colorado Interstate Gas Co. White, Weld & Co., New

Lynch,

Pierce, Fenner & Beane and Union
(jointly); W. C. Langley & Co.; Harri¬
Ripley & Co. Inc. Offering—Expected in April ox

New

Securities Corp.
man

York,

may

be included among the bidders.

DIVIDEND NOTICE

DIVIDEND

to

THE

DIVIDEND

COLORADO

share

stock

has

of

been

declared

Burroughs

($.25)

the
Corporation,
upon

payable April 20, 1955 to shareholders
of

record

at

the

close

of

business

March 26, 1955.

Dividend

NOTICE

Vice President

Detroit, Mich.

February 22,1955

and Secretary

©

UNITED FRUIT

PRODUCTS

Notice

CORPORATION

COMPANY

Formingdale, New York

Colorado
in

1955,
the

a

dividend

corporation

seven

the

on

in

the

one-half

and

common

amount

cents

per

stock

of

of thirtyshare was

declared, payable March 31, 1955 to stock¬
holders

of

March

dividend

record

7,

on

at

1955.

the

The

close

of

business

regular quarterly

the series A $50 par value pre¬

ferred stock in the amount of sixty-two and

one-half cents per share,

and also the regu¬

lar

quarterly dividend on the series B $50
value preferred stock in the amount of
sixty-eight and
three-quarters cents per
share, were declared, payable on March 31,
par

accrue

LIBERTY

meeting of the Board of Directors of
Fuel and
Iron
Corporation
New York, N. Y. on February 23,

a

The

held

on

Sheldon F. Hall,

FUEL AND

IRON CORPORATION

At

A dividend of twenty-five cents
a

by

Lynch,

petitive bididng. Probable bidders: White, Weld & Co.
and Kidder, Peabody & Co.
(jointly); Lehman Brothers;

NOTICE

on

ROCK FISH
RAILROAD
INCORPORATED

1955

140

Westpan Hydrocarbon Co. (4/15)
Dec. 11 it was reported Sinclair Oil Corp. will ask for
bids for 384,861 shares of Westpan stock about April 15,
1955, if it has not been able to dispose of these holdings

221st CONSECUTIVE CASH

the

.the, TrPstee

of

Nov.

sell

Burroughs

Qne-Quarter

the Deed of Trust dated, as of
between the undersigned and the

described

March 15

RAILROAD

the provisions of

„

purchase

DIVIDEND NOTICE

NOTICE IS HEREBY GIVEN
that, pursuant to

?f 1955,u"d^^"ed
iocec
1,

the

Inc. Underwriter
Pierce Fenner & Beane, New York.

& Co.

COMPANY

Per

on

shares to 2,500,000 shares.
The
raise about $10,000,000 through the sale
preferred stock and $5,000,000 bonds to

Gamble-Skogmo,

May, 1955.

DIVIDEND

(Mo.)

1,335,000

may

$5,000,000

finance

issue
$6,000,000 of cumulative preferred stock (par
$100). Proceeds^—To prepay bank loans and for construc¬

420,000

Incorporated
First

of

bid¬

tion program. Underwriters—To be determined by com¬

REDEMPTION NOTICE

R0CKFISH

&

Co. and Dean Witter

and

Dillon & Co., New York.

AND

by

Southwestern Gas & Electric Co.
17 it was reported company is planning to

shares of common
(par $5) will soon be offered to public. Price—
To be named later. Proceeds—To The Post Publishing
Co., publisher of The Boston Post. Underwriter—East¬

ABERDEEN

determined

from

company

Jan.

stock

man,

stock

subsidiary companies.

Not expected until Oct. 12.

Co.

announced

was

be

Supply Co.

announced that stockholders

approving a proposal to create an issue of
shares of preferred stock and $5,000,000 of
bonded debt, and on increasing the authorized common

plans to issue and
the public 500,000 additional shares of common
(par $5). Proceeds—To repay bank loans and for
in additional stock of

was
on

vote

100,000

Co., Inc., Bear,
(jointly); Union
Securities Corp. and Equitable Securities Corp.
(jointly);
Lehman Brothers; Morgan Stanley & Co.; Kidder, Pea¬
body & Co., and Merrill Lynch, Pierce, Fenner & Beane.
Bids—Tentatively scheduled for Nov. 9. Registration—

by

Gas

(11/9)

Stearns

competitive bidding.
Probable
bidders: Morgan Stanley & Co.; Halsey, Stuart & Co. Inc.
North

Western Auto
Jan. 12 it

announced company

was

(jointly); Kidder, Peabody & Co.;

The First Boston Corp.

will

Wertheim

Keith S. McHugh, President, announced that
more than $100,000,000
capital money to aid in carrying out its expan¬
sion and improvement program which will cost ap¬
proximately $200,000,000. Underwriter—For and bonds,

"Dec.

and Lehman Brothers

Inc.

ding. Probable bidders: The First Boston Corp., Ladenburg, Thalman & Co., Carl M. Loeb, Rhoades & Co. and

Telephone Co.

determined

Co.

Underwriter—To

17,

be

Co.

to

investment

new

to

it

30

stock

the company will have to raise
of

Republic

(jointly); Smith, Barney St
Co.; Kuhn, Loeb & Co.; Glore, Forgan & Co. OfferingExpected in April or May, 1955.

in March.
New

reported that company plans to Issue and
shares of new preferred stock (par $100).

was

100,000

Central

&

Registration—Planned for early

Dominick, New York.

of Oklahoma

Underwriter—To be determined by competitive bidding.
Probable bidders:
Harriman Ripley &
Co. Inc. and

later.

Underwriter—Dominick

investment.

Service Co.

1955

to stockholders

of -record

of business on March 7,

at the close

February 18, 1955
t'

223rd'

The

Board,of Directors of Liberty
Corporation declared
a
regular quarterly dividend of
Thirty-seven and one-half Cents.
(37V20) per share on its com¬
mon
stock, payable March 31,
1955, to stockholders of record

Consecutive

Products

at the close

17, 195.5.

of business
1

on

March

-

Treasurer

D. C. McGREW,

Secretary

t

*

r

v

per

share on. the capital stock of

this Company

has been declared

payable April 15, 1955, to stock¬
holders of record March 11, 1955.
EMERY N. LEONARD

William G. Holman

1955.

Quarterly Dividend
A dividend of seventy-five cents

'

V

Secretary and Treasurer
Boston, Mass., February 14,1955,

Volume

181

Number 5406

.

The Commercial and Financial Chronicle

(955)
DIVIDEND

NOTICES

DIVIDEND
HOMESTAKE

'

v

NOTICES

MINING

DIVIDEND

/

The Board of
No.

895

of

DIVIDEND

NO. | 895

Directors

has

1955,

declared

to

be

will

mailed

Dividend

pany,

Disbursing

JOHN

February

11,

by

W.

Irving Trust
Agent,

A

QUARTERLY

Cents
of

($.15)

DIVIDEND

share

per

Company has been
Treasurer's Office, No.
York 6, N. Y.t. on March
holders

of

February

record

28,

165
21,

the

at

of

Seventy-five

the Common Stock
declared payable at

on

this

the

Broadway, New
1955, to stock¬

close

business

of

N. Y.,

J. GOODWIN, Treasurer.
February 17, 1955.

record

The

A

share On

per

March

1955,

11,

dividend

holders

to

of

9

February 28, 1955.
ROGER

Rockefeller

On

^HACKNEY, Treasurtr

W.

Kennecott

Plaza, New

York,

($1.25)

of

business

N. Y.

a

today by

Copper Corporation, pay-'

March 29,

on

holders

COMPANY

February 23, 1955, a quarterly dividend of
cents
per
share on the Preferred Stock

433i
and

HELME

Cents

share has been declared

York, N. Y., February 23rd, 1955.

GEORGE

Stock

distribution of One Dollar

Twenty-five

able

Common

the

cash

and

SMITH, Treasurer

[DIVIDEND
a

Street, New York, N.Y.

1955, to stock¬

record

on

the

at

close

March 2', 1955.

ROBERT C. SULLIVAN,

of

Directors

has

declared
dends:

5%
Convertible
Div:dend No. 6

Common.
45c

of

Dixie

1955

No.

share—payable
H.

R.

A—-

share—

per

89

March

March

(quarterly)—

25,
1955.

10,

WECKERLEY,

February 21,

divi¬

Series

to stockholders of record

Stock—Dividend

per

following

Stock,
(quarterly)—621/2e

stockholders of record

Dated:

the

Preferred

payable April ll,
March
10, 1955.

of

V

Board

Cup
Company,
makers
of
paper
drinking cups and food containers,

February 18, 1955

the close of busi¬

at

WILLIAM T.
New

Corporation

The Board of Directors declared

payable

York,

CORPORATION
1 61 East42d

March 4th, 1955.

npi Johns-Manville

SSDTct.

NOTICES

DIXIE CUP COMPANY

108

February 23rd, 1955 the Directors of
Mining Corporation declared a
regular dividend of 50$ per share on the
2,658,230 shares of its Capital Stock now
outstanding, payable March 15th, 1955 to
stockholders of record

JJkil
of 75c

No.

Newmont

ness

1955,
E.

New

Dividend

On

HAMILTON, Secretary.

1955.

JOHNS MANVItU

■

DIVIDEND

KENNECOTT COPPER

Corporation

Com¬

SOUTHERN PACIFIC COMPANY
DIVIDEND NO. 149

NOTICES

JNewmoiif Mining

Dividend

forty

cents ($.40) per share of $12.50
Capital
Stock, payab'.e
March
11,
stockholders of record March 1, 1955.

Checks

DIVIDEND

COMPANY

value

par

NOTICES

43

1955

Secretary

1955,

Secretary

dividend

of 40
cents per share on the
Stock
were
declared,
payable April
to stockholders of record at the ciose
business March 8, 1955.
a

Common

1,

1955,

of

J.

INTERNATIONAL
HARVESTER

The Directors of International
Harvest¬

One Wall Street,

Company have declared quarterly
dividend No. 160 of
fifty cents (50fi)
on

the

common

stock

payable

April 15,1955,
at

to stockholders of record
the close of business on March

UNITED

New York

GERARD J. EGER,
Secretary

DIVIDEND NOTICE '

GAS

TENNESSEE
The

CORPORATION

^February 17, 1955
-.<4(
v

SHREVEPQRT,

Board

clared

LOUISIANA

declared

February 15, 1955
*

the

of

30

cents

capital

1955,

share

per

stock of this

on*

•

cents

(371/24)

date

share

per

on

Corporation,
payable April 1, 1955, to stockholders

business March

of

has this

dividend of thirty-seven and

a

the Common Stock of the

stockholders of record

to

The Board of Directors

one-half

llOj-payable April 1,

the close

r.

declared

Com¬

iTiTiT.TTn

at

dividend

of

of

record

March

1, 1955.

the close of business

at

1955.

10,

February 23, 1955

company

A

dividend

Secretary

of

thirty
seven and one-half
(37j/2(0
cents per share has been de¬
clared payable March 28,
195f, to stockholders of
record

Win ham

H.

B.
RALPH B. PLAGER, Secretary

on

~

ness

at

the close of busi¬

(35c)

Stock

mon

and

five cents
the

(25c)

Preferred

per

a

ONE

of

DOLLAR

share has been declared

capital

on

61

LONG ISLAND LIGHTING COMPANY

the

payable April 1, 1955, to stock¬

both

corporation,

1955,

25,

DIVIDEND

of

business

will not be closed.
The

Board

of

Directors

J. OSB0RN

Vice Pres. &

declared

a

Sec'y.

share

per

of the

1,

EE3

March

15,

PREFERRED STOCK

clared

Company, payable April

1955

to

record at the close of business

D. W. JACK:,

following quarterly
payable April 1, 1955

at

March

the

close

Secretary

of business

CORPORATION OF AMERICA

11, 1955:

Series

180 Madison

Per Share

Series'D, 4.25%

February 1 8, 1955

*

$1.0625

THE Boardthe Directors has this day
declared
of following dividends;

$1.0875

Treasurer

February 23, 1955

trade-mark

quarterly dividend of
30c per share in cash on com¬
mon stock,
payable April 15,
1955
at

to

the

March

shareholders of record
of business

close

on

59Q

Madison Ave.,

New

The Board of Directors of this Corporation has
this day declared a dividend of $1.00 per share,

of record

payable

10,

1955,

to

stockholders

of

IBM

Electric

the

Punched

Card

101st Consecutive

WILLIAMS,
Executive Vice President & Treasurer

Dividend

January 18, 1955

close

yM& /.

f

STOCK

R. O. GILBERT

i

dividend

on

February 16, 1955 de¬
clared the regular quart¬
erly dividend of 50c per
on

share.

the Common Stock of

I

Board

clared

same

of
a

time

1955

stock

divi¬

dend.

Both

was

de-i

record

shareholders

of

dividends

Checks

will

be

#

March 1, 1955.
John R. Park

Dividend No. 32

STOCK,

Dividend No. 28

^28 'A cents

Pullman

share.

per

Payable
to

of

20$

& Treasurer

$1.00

ferred

share

PHILLIES
America's No. 1

Vice President and Treas.

cigar

Cash

Year

May

stockholders

31,
of

1955
record

CUMULATIVE

25V2 cents

Dividends

on

clared,

regular quarterly dividend of

seventy-five cents (750)
share will lie paid on
1955

to

per

March 14,

stockholders of record

February 28,T955.

'

-

pre¬

$1.061/4

Pretident

have

payable

on

been

4.88% SERIES
Dividend No. 30

April

30V2 cents

per

share.

to

June

stockholders

June

30,
of

1955
record

5:

ORIGINAL

PREFERRED STOCK

Dividend No.

1 84

60 cents per share.
CUMULATIVE

PREFERRED

STOCK,

Dividend No, 33
27 cents per share.

Checks for the above dividends
will be mailed from the Com¬

de¬

1,

pany's office in Los Angeles

1955 to stockholders of record
at the close of business

share.

4.32% SERIES

the $4.25 second pre¬

stock

per

CUMULATIVE PREFERRED STOCK,

predecessor companies

CHAMP CARRY

and

STOCK,

Dividend No. 21

Payable
A

PREFERRED

4.08% SERIES

of

a

stock,

ferred

the

on

convertible second

$4.00

on

preferred

share

a

on

stock,

share

a

the $3.50 cumulative

stock,

Philadelphia, Pa.

share

a

common

8 7V2$

Archie Mishkin
Pres.

Consecutive

Quarterly

Quarterly dividends
the

Vice

89th

and

mailed.

to
on

4.48% CONVERTIBLE SERIES

paid by Pullman Incorporated

are

payable April 1, 1955




ItAHWAY, N. J.

February 28,1955.

February 18,1955

stockholders of record

MERCK & CO.. INC.

payable March 15,

to

de¬

Directors
5%

the

per

Corporation

E.

At the

181

60 cents per share.

PREFERENCE

Incorporated

fifteen

share

(15$)

clared
Directors

of

«►

this

of

Dividend No.

May 5:
A

cents

Board

1955

record

4.56% CONVERTIBLE SERIES

Vice President & Treasurer

The

30,
of

28 cents per share.

February 23, 1955.

Paul E. ShroadS

146th Dividend

April

stockholders

COMMON STOCK

Secretary

on

25, 1955.

COMPANY

Payable

PREFERENCE STOCK,

February 11, 1955,
declared a quarterly dividend of
seventy-five cents per share on
the capital stock, which will be
payable March 14, 1955, to

ffi WiMM

share.

April 5:

stockholders of record February

AMERICAN STORES

Dividend No. 32
27 cents per

12J4 cents per share payable March
24, 1955, to holders of record at the
close of business March 7, 1955.

The Board of Directors at "a

February lb, 1955

1 83

CUMULATIVE PREFERRED STOCK,

of business

,

meeting

5:

4.32% SERIES

to

COMMON

1955. Transfer books will not be closed. Checks
on

at

February 17,

on

1955

record

50 cents per share.

March 7, 1955.

March

record at the close of business

A. L

Sec.-Treas.

the close of busi¬

March 7, 1955.

regular quarterly dividend for
the current quarter of $1.75 per share,
payable April I, 1955, to holders

Quarterly Dividend

31,
of

ORIGINAL PREFERRED STOCK
Dividend No.

The

Accounting Machines will be mailed.

L. L HAWK

at

March

7% SECOND PREFERRED STOCK

York 22

The 160th Consecutive

prepared

23, 1955.

ness

MACHINES CORPORATION

a

regular quarterly dividend for
the current quarter of J1.12J4 per
share, payable April 1, 1955, to

March

stockholders

The

holders of record

INTERNATIONAL BUSINESS

IBM

Payable
to

VINCENT T. MILES

of Directors has

of Directors has

following quarterly dividends:

4%% PREFERRED STOCK, SERIES A

Quarterly

The Board

DIVIDENDS

The Board

authorized the payment of the

<K

Series B, 5%

Dividend Notice

declared

Avenue, New York 16, N.Y.

Series E, 4.35%

Bryan, Ohio

California
Company

Edison

holders of Preferred Slock of

record

1955.

Southern

the

dividends

of

stockholders

to

The ARO EQUIPMENT CORP.

'

New York 6, N. Y.

The Board of Directors has de¬

the Common Stock

on

\>

1955,

TISHMAN, President

today

dividend of 58 cents '

on

March 2,

.

NORMAN

Broadway

\

'Jj*

HERVEY

stock¬

DIVIDEND

vt-£>
T\

NOTICE

'

Exec.

payable
to

QUARTERLY

March 15, 1955. The

stock transfer books of the Com¬
pany

on

this

COMPANY

holders of record at the close of
on

of

UTILITIES

stock of this Company,

business

share

Stock

Treasurer.
dividend

regular

a

holders of record at the close

John G. Greenburgh

DIVIDEND NO. 163

A

cents

the Com¬

on

quarterly dividend of twenty-

March

March 2, 1955.

share

per

de¬

quarterly

thirty-five

Dividend Notice

divi¬

quarterly

a

Directors

\

The Board of Directors has this

day

of

regular

a

_

pany, par

International Salt

CONSTRUCTION CO.'nc

CORPORATION'

CORPORATION

dend

15, 1955.

rrrrr

TISHMAN REALTY &
NCSSCI

er

share

McCAULEY, Secretary.

Company

COMPANY

per

P.

Irving Trust

on

the respective payable dates in¬
dicated.

March

,

WEBSTER
The modern-mild

cigar

11, 1955.

p. C.

John H. Gage,

February 23, 1955

TRAILM0BILE

hale,

Treasurer

FebruaryC18, 1955

Treasurer
**4

to

44

The Commercial and Financial Chronicle

(956)

t

'

.

BUSINESS BUZZ

have

With

.

Capital

^

the

to

,

of

com¬

aid

to

bill;

in

advance,
told

have

would

gJ
xJLl wxA/

(

chance

-

the Republican
"progressive moderates" if con¬
sulted

from the Nation's

better

a

respect

education

•

A

Rekind-the-Scene Interpretations

:

had

victory, by even a little
promise here and there.
,

on.

Thursday, February 24, 1955

...

'

.

..

obviously

the

President

for

cripes sake if he was going *
to come out with a specific pro¬

"

gram, to go for something which
bail them out, and not
just Democrats from poor states
and Republicans from almost as
poor states, who would be suspicious anyway of Federal en¬

would
Just

WASHINGTON, D. C.—There

:

is

feeling

strong

a

Hill that President

Eisenhower,

the Congress gets

as

under way,

outsmarting

is showing signs of

stands

himself, at least so far as get¬

results is

legislative

ting

it

con¬

antagonized

parties and both wings of
both parties the way the for¬
eign trade and aid to education

bitterness

these

on

tions.

heaped

the

Aid

himself

lowed

education

to

bill

that

to

at the same time

minimum

and

Federal

of school

80%

enactments, the majority on the
Hill also figured the President

I

issues.

bond

tle enacted.

in

considerable
of

like

looked

what

in

success,

terms

reason¬

a

expectation, with his legis¬
lative program.
Are these crit¬
ics wrong again?

able

avoid

gressive

They point out that last year
President achieved consid¬

simply

success

what

past

tions they had had,

if

any,

for

construction

the

more

This year

the situation is dif¬

The Democrats with

ferent.

committees

of

ganization

and

one.

control of the Rules Committee,
K

hold

all the
lecks

few

much

to

Evolve
the

Meanwhile

if

Strategy

fairly well crystallized on their
political strategy.
This is
a
two-part affair.
For

thing, they are going

one

their

do

best

to

the

create

that whatever the
he will get be¬

impression

President gets,
cause

of the Democratic leader¬

ship.;

is

This

defensive

the

phase of their strategy.
sumes

that

hower

It

President

local

find

Democrats,

particularly in the House, have

as¬

i

in

out

come

same

local

indirectly

service

point,
Rube

on

pay a

If

—

has

Government

the

the

any

much

aid

would

leasing

new

the

move,

bonds.

greater

social

element

reform

lies

which probably will

Committee,
segregation

commanding
shall

ticed in any state

not

be

is

ners,

in

their

in

the

the

of

naturally to
ocrats

respective
this

a

retain

and

foreign

the

LOS ANGELES,

program.

It is not that the

Republicans
Mr.

if

have

would

Eisenhower's

more

protectionist
loved

Second,

wins

affiliated

become

H. Starr have

with

the

will
"breaks," to

course,

Avenue.

Mr.

ously with Boren & Co.

Three With Calif. Investors(Special to The Financial Chronicle)

LOS
I.

John

added

Calif.— Bert¬

ANGELES,

ram

Hackel, Robert L. Ingram:
to

Investors,

staff

3924

of

talist

consulted.

advised

learning

But

as

him

something

"how,

'

Daniel Weston Adds

by

from

the

failure of this trade program in

1954,

Mr.

Eisenhower

could

\
'j

BEVERLY

HILLS, Cal.—Doro¬

thy Parker has been added to the
staff
140

of

Daniel D.

South

Weston &

yon.

all

<

W. L. MAXS0N CORPORATION
CAPITAL STOCK
CAPITALIZATION: 330,397 shares Capital

This is

a

real

Stoch

to

j Carl Marks & do Inc.
FOREIGN

try

to




win

SECURITIES

50 BROAD STREET

make

This

well.

$3,229,917

7,453,985

share
$0.81

614,012

15,923,380

per

$211,364

526,494

2.26
;

1.82

34,377,128

1,085,502

3.54

1954

HANOVER 2-0050

TEL:

look

as

Net Earnings

1952

of

minded,
to

-

GROWTH Company (Electronics)

1951

the

'

mw

'in

the
-

-

^

ii

37,143,000

1,496,000

4.53

\

\

.
—

•On an Increasing number of shares

yearly due to stock dividends

Trading Market for Brokers and Dealers

SPECIALISTS

NEW YORK 4,

N. Y.

TELETYPE NY 1-971

i---v

i

•

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Beverly Drive.

We recommend at the market

is

futile, capi¬
and what have

jWLite House

Boule^

Wilshire

any

•Earnings

term.

Democrats,

attempt

the President

California

1953

second

for

beem

have

Lewis

B.

the

vard.

program

political technicians they could

Federal school aid.

cor¬

strategy

look

Shearson,;

South Grancfe
Starr
was
previ¬

Hammill & Co., 520

Sales

enlarge their
in case the

a

j

Calif.—Marvim

B. Fitz and Harold

saved

trade

Hammill )

(Special to The Financial Chronicle)

and

for

day

1950

control of Congress

President

Stock

prac¬

which receives

to it that Dem¬

see

Street*

New York

With Shearson,
s

vote

a

that

rule

closed

that

will be re-elected.

Purpose

-

Eighth

West

will

he

^

325

come

certainly be re¬
nominated as a Republican, and
having convinced budget-bal¬
ancers and spenders alike that

•*

Fox,

con¬

Stern, Frank, Meyer

Exchange.

year

conservative what
advice
the latter had, if any,
to give about the foreign trade
program, or whether it would
pass. At this writing the closed
rule squeaked through by one
vote, and that one vote dra¬
matically drives home that it
was due to Sam Rayburn's tak¬

from the floor rather than from

Congressional view¬

with

members of the

Republican

have

of
direct Federal grants. The best
chance
for
killing this great

a

ANGELES,

(Special to The Financial Chronicle)

kind

to education bill
comes out of Committee, it will
be one compromised to involve

already yowling, for

Eisen¬

from heaven

engines of this
yet invented by man.

this looks like strictly
Goldberg.
Furthermore,
from the wealthy

are

for

pass

purtiest

can't

least

at

the

million

$500

the

prominent

a

on

Federal

Senators

states

Committee.

with no
strings attached. After all, the
states
lack
engines
for
the
manufacture of money, and the

because

district

school

From the

the

Labor

i

in

asked

never

ing the floor to reverse

money

could
And

find

they

expressly to
equivalent to

debt

Senate

the pompous pedagogues want—

that $6 bil¬

districts

have
fee

to

1955

the dough
around. This is expressly what

amount of money to serv¬

ice the debt
the

aid

is

letting the states

enough to service

revenue

debt,' how "can

latter, in the politest
with his ingratiating

Eisenhower

Mr.

the

Mr. Hill has proposed simply
that
the
Federal
Government

create

spending

school

the

&

j

Califi^-Geof-

nected

If
Eisenhower
Republican, he jpst:

a

j

; (Special to The Financial Chronicle)

frey M. Berman has become

to

manner,

passed, there
be a compromise
by Rep. Lister Hill
Alabama, the Chairman of
have

'
j

...

smile, just what he is going to

at

any

re¬

views.)

own

..f' ■•..v.-Vv\ -

iLOS

as

grants to aid school construction,

three years.

i

bills,!

Congress.

.

tells

to

the

precludes the

notion

from

always,
is;
avoiding consulting RepublicansPresident,

the

sore.

up

before

bill

of

pomp¬

to

meet

school

of

lion

to

That alone

Eisenhower

decision.

the

affect

of

they can't do

ago,

years

to

coats

blue

are

the

the

by

with the bill

legislatures

state

have

them.

that

apportion

the

ago

years

came

Now With Stern Frank

With respect to both the aid

talks

as

even

said

will

They pointed out that be¬
up,

MC's

swiped

being

Senate

money.

would

coats

red

wear

their

of

Democrats

to

set

is

It

fore school authorities could be

if

even

conjurable Charley Hal-

decide

instead
a

initiative and

the

too,

in

of such "pro¬

So

education

the

few

a

"Chronicle s"

}/;

do.

pedagogues demolished this

ous

great¬

grants

In about two days

or¬

his

"Eisenhowercrats"

of $20
million to administer agencies
to figure out ways to borrow

President.

have

'

Will Need Compromise

appropriate only
in direct school

million

$200

and

line

the

down

went

Halleck
convic¬

Charley

like

[leaders

swallowed

would

Presi-

;•

to education and the trade

up

Finally, the Federal Govern¬
ment

been

Democrats.

to local school districts.

because

to

|

And

the

moderate"

haven't

al¬

States

nothing.

concentration

est

would set
*up "authorities" to borrow on
their own (with some Federal
aid) and "lease" schoolhouses

the

erable

limits.

debt

borrowed

just

money

Consulting: Congress

states

same

tends

dent

.

ready

these

Ike Avoids

school
would

own

problems

get the least, or

finance, of develop-<
extra-legal
gimmicks
to

ing

drinking man!"

pretty

are

their

construction

It

to Federal

had

President

the

'

flect the "behind the scene" inter¬
pretation from the nations. CapitaI
arid may or may not coincidte with

the floor!—My Goodness!

thought he «fas a

which

states

well handling

also
that
schools
should adopt the legally evasive
strategy the President has now
fallen in love with, with respect

being misled by his advis¬

never

on

the
those

proposes

and that he would get lit¬

Instead

Broadbottom is out

It is in¬

It pro¬
poses the "investment" of $750
millions in purchase of up to

when he proposed his pro¬
liferating program of Federal

Fed¬

to

(This column is intended to
"Mr.

complicated.

finitely

entitled

capital grants for

heaven.

House came up

construction scheme.

be

public housing
string of loans for "urban

And

;

with this Federal aid for school
I

:

clearance,

a

that

outlay.
So the White

going to

rehabilitation."

paying respect

admitted

of

would

slum

yet

was

Fed¬

a

good little city, and there¬

a

eral loans and

alleged positions in favor
of local control of schools and a

ago,

was

be

to his

a

ers,

construction

received

Louisiana

eral official that it

know what the Presi¬
getting at. He wanted
to be backing Federal

school

for

in

formal certificate from

a

was

seem

aid

year

one

council

private

fore

They

well

as

most typical il¬

White House strat¬

over

dent

Republicans rate these ad¬
visers as political. amateurs.
recalled

aid

egy..

esti-

as

is

Education Bill

to

gress

"progressive

Democrats

moderates."

be¬

disgust of the members of Con¬

It is no

become

to

the

of

difference

parties.

lustration of the current

grasp of either the economic or
political
implications
of his
programs, and that he has al¬

prisoner

•

de-

,

majority

the

that

as

represents the

"rate of the President on Capi¬
tol Hill, regardless of party, is
that he is a man lacking a firm

It

scribe

The

advisers.

White House

trade

moron

May Flop

ques¬

the coterie of

upon

the

tween the two

the bitterness is not di¬
against the President. It

secret

Cv

;

long time past, how¬

a

impress

Democrats will

'

As for

is

with which to more clear¬

.

private

two

to Federal encroachment,
Housing and Home Finance
Agency is daily announcing how '
it is certifying that cities, large,
small, and medium, are coming "j
to
dock
and
conducting } city
planning, enacting and enforc- :1
ing zoning codes, surveying their j
neighborhoods,
and
in
many >
other ways conducting their af¬
fairs
as
dictated
by
HHFA .
bureaucrats. A week ago a city

As

the

comparatively few is¬

with -what

handled.

considerable

is

There

been

have

programs

cation.

to

on a

ly

both

ever,

going

is

He

sues

White
House
members of

the

Already

rected

classically.

,

croachment in the field of edu¬

Sam plays

all issues.

on

pick

cerned.

has

Ray-

Sam

incidentally,

burn, unlike the President, is
not going to have his Demo¬
crats make a record by flailing
their arms around and taking

Capitol

on

LERNER & CO.
10 Post Office

Square, Boston, Mass.

Telephone HUbbard 2-1990

Teletype BS-69