Full text of Commercial and Financial Chronicle : February 25, 1954, Vol. 179, No. 5302

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ESTABLISHED JS39
UNIWj-RSITY
CHIGAN

Commercial w
Chronicle
261954

*

MHDUSIUTIM

UBUir

Reg. U. 8. Pat. Office

EDITORIAL

1954 Is

One of the most
years was

that

Commenting

disconcerting events of recent

ment

of

second

blind willingness

a

points out, there are local as

people to entrust their decisions to the party in power;

our

The

Lists the "debris" that has been cleared

ancestors.

apparently take rather more
so

suggested, essentially the same idea has for
time been a sort of rallying cry of the New
Deal and the Fair Deal elements in the Senator's

far

program

accepted

dent that the

Douglas, and it is now evi¬
President himself has been giving

the idea

than passing

more

But this is Senator

of the

with

politically minded among his party
members, not some of the more radical followers
after the false gods of the 'Thirties, but Senator
George, one of the well recognized and most in¬
more

prophetic

sue.

fluential old-line conservatives of the Democratic

We get a

in the future

The
which

significance

the

bald

side of the
exactly well balanced either. Finan¬
cially, it hovers on the edges of recurrent dollar crises.
Militarily, it is anything but secure. An impending new
Of course, the European

to say

the

of

turn

wage

world markets.
Sherman

Adams

on

War

NATO forces have reached a re¬
size.
Record-sized American aid, favorable
terms of trade, artificially reduced dollar imports and
subsidized dollar exports, Russian gold and a (wishful)

ternal revolution, and

spectable

28

page

price Britain out of the
torn

social strife. But by and large, we have suc¬
seemingly — in stabilizing the trans-Atlantic
on that side is not in prospect, nor is in¬

—

situation.

it is the greatest year of our lives, any

Continued

may

screw

Countries like France and Italy are

asunder by

ceeded

in

gather must be to you as it is to me a striking
This is a year of decision, but no one should be
as

Continued

by Mr. Adams at the Annual Meeting of the Amer¬
ican Paper and Pulp Association, New York City, Feb. 18, 1954.
*An address

.

Continued

on

page

28

index on page 3 vividly shows the

ON THE INSIDE—A glance at the

tion of

DEALERS

is

in

the

"Chronicle"

Thursday

every

State and

Established

Municipal

ALL

MARKETS

CALL

ONE

ON

STATE

Complete Brokerage Service

Securities

All

Chemical

★

BROAD ST., N.Y

MABON & CO.

New

Broadway, N. Y. 6

Bell

System

Cotton

Exchange

Exchange,

Inc.

of
Trade
Orleans Cotton Exchange
Board

and

THE NATIONAL CITY BANK

other

Band Department

Exchanges

N. Y. Cotton Exchange
NEW YORK 4,

OF NEW YORK

Members N. Y. and Amer. Stock Exchanges

115

Exchange

Commodity

Chicago
Miami

30

Stock

York

Bonds

Exchange

Stock

York

Chicago

Sixty Years of Brokerage Service
department

Municipal

★

bank & trust

bond

New

Preferred and Common Stocks
★

company

BONDS

Corporate & Foreign Bonds

State and

Members

American

State and Revenue Bonds

HAnover 2-3700

32

1856

H. Hentz & Co.
New

U. S. Government—Municipal,
telephone:

MUNICIPAL

AND

page

which

week throughout the year

m

U. S. Government,

on

wealth of informa¬

vit^il importance to the securities industry, investors and businessmen

available

Palyi

Soviet empire is not

Note

hour

Melchior

Dr.

we

thing.
so

of

wrapped in one.
Europe—Stabilized?

looking

the really important question.
how they answered it."

are aware

vacuum,

back will say, "In that age, here was

This wing of the party is ordinarily given
credit for possibly most nearly representing the
intelligent conservatism of the nation. This action
on
the part of the Senator is exasperating not
only because with such sponsorship the move¬
ment becomes doubly dangerous, but also for the
reason that a leader and a statesman upon whom

party.

entire

that

of

of the fact that they
live in a vacuum, as it were.
It is
a
military, political and economic
region

feeling that some time
the historians,

nations

The

tinent.

portentous is¬

and

But

intrigue and double-play.

does

instance, or agriculture, or finance,
•or
labor, or security, social or na¬
tional, there seems to emerge a much
more

ag¬

countries

of freedom of action

security, whatever it is worth,
not apply to the Asiatic Con¬

such

understanding as well.
It is
-good.
We believe in it.
But occasionally, reflecting upon
an argument about world trade, for

consideration.

measure

a

—for

of

The

Russian

these

provides

gression

duces

George speaking—not some

thing.

orbit,

the American

security from

of

sense

argument, of disagreement is a basic
ingredient of our way of life. Debate
produces decisions, but debate pro¬

intellectual Senator

Japan, has (silent¬

containment policy as a good

not dare to invade them.

will

always at least two sides to every important question.

discussion,

situation is not

Japan in particular, take it for grant¬
ed that the policy actually works:
that the Soviets are contained and

time, in every year, there are always impor¬
tant issues which confront us in this country.
There are
of

our

within

Nations

At every

opportunity

Asia, from the Suez Canal to

"Free"

ly)

#

The

global conflicts.

nature of the Asiatic

explosive

some

party, and among the labor union followers of
Roosevelt, Truman, Keynes and the others.
It
has also been the favorite theme of the more

as

being fully appreciated.

of 1954 is to
decentralize certain responsibilities and restore individual
energy and incentive, while, at the same time, being pre¬
pared to cope with unseen emergencies. Concludes
people and government "will never accept another
grave depression."
and indicates Eisenhower

away,

well

overpopulation in the area, and difficulties
caused by weakness in the price of Asia's raw materials.
Says American policy in Far East is in a vacuum that is
rapidly fading out, and "in effect it is no policy at all."
Stresses

sponsibility and decline in the standards of honesty.
Says it is now time to return to independent spirit of

ing power" in the hands of the rank and file and
thus of warding off a depression or recession.
'
Of course, the notion is not new.
Although
than most of the others have

situation is not

govern¬

(2) the belief that the Administration could do no wrong
best, and (3) a creeping irre¬

George in coming forth with a proposal that
personal income tax exemptions be drastically
raised as a means of placing additional "purchas¬

action

paternalism, which meant: (1)

a

and Government knows

tor

drastic

Palyi, maintaining the "explosive nature of the Asiatic
being fully appreciated," discusses polit¬
ical and economic situations in Far East, where, he

the effects of the 1929 depression, the

on

President's chief assistant finds that it led to

reported from Washington last week,
seemed so to us at the time and

the Senator would

By MELCHIOR PALYI

Dr.

thought has not availed to alter
first impression.
It was the action of Sena¬

sober

Copy

a

Assistant to the President

least it

at

or

Cents

40

Vacuum in Asia

Key Year

a

By SHERMAN ADAMS*

We See It

As

Price

N. Y., Thursday, February 25,1954

New York 7,

Number 5302

Yolume 179

RE 2-2820

Teletype

NY

1-2152

Bond

Dept. Teletype: NY 1-708

•

THE CHASE

Bldg.

N. Y.

Detroit '• Pittsburgh
•
Coral Gables

NATIONAL BANK

Beach

Hollywood, Fla.

•

NEW YORK

OP THE CITY OF

Geneva, Switzerland
Holland

Amsterdam,

I
Net

LAMB0RN & CO., Inc.
WALL

99

NEW

STREET

To

T.L.Watson&Co.

Active

YORK 5, N. Y.

Commission

CANADIAN

Members N. Y. Stock Exchange
—

Liquid

DIRECT

Established 1832

WIRES TO




BRIDGEPORT

PERTH

AMBOY

YORK

of New Hampshire
COMMON

Executed

On All

-

Analysis

At Regular Rates

upon

request

DEPARTMENT

Poncooh Securities

MONTREAL AND TORONTO

NEW YORK STOCK

115 BROADWAY
NEW

I

Public Service Co.

CANADIAN
BONDS & STOCKS

Goodbody a Co.
MEMBERS

DIgby 4-2727

Brokers

Teletype NY 1-2270

American Stock Exchange

Exports—Imports—-Futures

Orders

Canadian Exchanges

sugar
Refined

Maintained

and

OIL, LTD.

NEW YORK 4, N. Y.

—

Banks

CANADIAN SUPERIOR

50 BROADWAY

Raw

Markets

Dealers,

EXCHANGE

1 NORTH LA SALLE

CHICAGO

ST.

IRA HAUPT & CO.

CORPORATION
40 Exchange

Place, New York S, N.Y,

Members New
and
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;

Boston

Exchanges

Broadway, N. Y. 6

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other Principal

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Telephone:

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'*"V

2

(878)

The Commercial and Financial Chronicle

i/: AL'.

—

The
We

are

pleased

Security I Like Best

opening of

participate and give their

a

reasons

for favoring

direct telephone wire to

they to be regarded,

are

HERBERT E.

ARTHUR L. WRIGHT

Resident

as an

offer

GREENE

N.

battle

Helicopter Corporation

future en¬

American

such
An

E.

90

5

ing

Specialists in

a

-

r

c

the

Rights & Scrip

Pa.,

Exchange

Philadelphia

Lynchburg, Va.
TWX LY 77

feet

square

of

rise to

to

This

which

company

has

CAROLINA

Eng.

The

—

Stock

amount

since the turn of the year. Boom¬

I. G. FARBEN

The 1952 sales
1952

taxes

earrlings

were

net

<9fij)£nheimeJi Sl ^
Members

New

York

Stock

Exchange

The

The

estimated

are

to




Feb.

24,

1954

in

backlog

tiations

of

Call

after

$150,000,000.
along in nego¬

future

market value.

100%

10%

in

in

growth

a

rise

in

The companv paid

stock

May

16,

1951

and

The company is
going ahead
with its programs for a
very large
H-16 helicopter twin
The

first

has

version

been

flight

it is understood that

version

with

might

power-

ma¬

of

tested

a

improved

this

newer

motive

be

the

week,

the

in¬

nearly

touched

its

postwar
Dr. Paul

high

Einzig

record

reached

seven

years ago. The
rising trend was justified to a
large degree by the evidence that

boards of directors

many

are

prepared to disregard the
cial

ban

bids"

take

low
the

dividend

on

Actual and

1953.

the

of

dex had

current

desire

of

but

noteworthy

second

orders

for

who

week

towards

exceed.

additional- business
which could materially add to its'

tors

now

unoffi¬

increases.

anticipated "take-over

by financiers wanting to
advantage of the artificially

level

of

control

quotations to

of

various

secure

companies

about

the

potential inherent in the develop¬
ment of a large twin engine heli¬
copter.
Airlines
are
anxiously

awaiting the development of such
a ship
since the additional safety
accompanied

the

almost

helicopter

by

twin

required

can

be

en¬

before

introduced

is

that

to
a

planting

mind in

this connection

large helicopter in
a

truck

also

in

sup¬

many

18S7

Tokyo—48

&

Investment

Branches
Bankers

Broadway, N.Y.6 COrtlandt 7-5680

widely believed

was

London

would

follow

though

the

would continue for
The

reason

some

time.

statement

view

of

time.

Their

internal

no

was

indicating
mqke

the

House

his

of
His

Com¬

his

unwillingness

kind

year.

The

showing

to

in

any

large

of

was

publication

Supplementary
that

to

of tax reductions

food

of

a

Estimate,

subsidies

are

that, contrary to widespread

expectations, the Bank
not

reduced

oh

Rate

was

February

11.

After the reductions in New York

CROSS

at

decision

conditions

must carry on

and

I

from the point of view of the bal¬
of payments.

ance

There is

call

sign of

no

recession

in

for

bank

a

business

any

Britain

that

rate

would

X

reduction.

DIRECTORY

Unemployment is quite negligible.
The

is

demand

for consumer

running at

there

for

capital

investment.

trary,

the

the

to

has

gram

available

fully

are

modest

very

inflation, and also

Britain's

sources

re¬

employed.

road

building
recently
been

account

roads

in

are.

its

of

pro¬

divert too
ited

timidity.

New

resources

of

Firm

a

purpose

immediately produc¬

be

capital
of

circumstances
no

of

trouble

with

interest

the

rates.

aid
The

slackening
both

of

is too high. A
domestic
demand

capital

surpluses

goods

and

Clase

Handled

Partners

Officers.

or

Names

Department Heads

Stock

Exchange

berships
Phone

and

Association

tions —Wire

Phone

Connec¬

Systems —Teletype Numbers—>

Correspondents

—

ROSTER

which

in

Arrangements.

Clearance

ALPHABETICAL

showing city

Mem¬

(including N.A.S.D.)

Numbers—Private

they

of

are

all

firms

located Is

another valuable feature.

Bound

in

durable

ENTER

HERBERT

YOUR

D.

25 Park Place

limp fabrikoid—$12
ORDER

SEIBERT

&

TODAY

CO., INC.

New York 7, N.

Y.

REctor 2-9570

con¬

available

and

excessive

by

dis¬

wages

de¬

mands.

Over-the-Counter

Sterling could do with
strengthening. The gold
which

was

a

powerful

a

little

influx,

stream

a

ago,
has now become re¬
duced to a bare trickle. With the
Bank rate unchanged, the lower
year

York

Bank

funds

to

rate

may

London.

means

is

not

because

a

doubtful

Quotation Services
for 40 Years

divert

Needless

to say, any gold obtained by such

does

Office

&

would help export
increasing the exportable

couraging

New

Post

Business

of

goods

sumer

trade by

some

including

is that domestic expendi¬

ture of every kind
for

of

con¬

Numbers

Character

Securities

of

is

established

date

Address,

Names

point in stimulating

expenditure

reduced

there

and

District

which business

under

name

General

An

the

cities.

ducted

Britain's lim¬

towards

covering

Street

but

does not want to

much

book containing over 8,000
all United States and
Listings are arranged
geographically
and
alphabetically,
and
are
comprehensively detailed:
1,400 page

listings

Canadian

an¬

urgent demand,

the government

A

A

nounced, subject to much criticism
on

"Security Dealers of North America"

con¬

has

government

to avoid

because

STOCK aid BOND NOOSES

stimulating

On

check public and private expendi¬
ture
on
capital
equipment,
in
order

OF

goods

high level. Nor is

a

need

any

would

decision,
ambiguous terms
widely interpreted as

couched

and

this

in

reductions.

announcing

mons,
was

for the setback

Tax

RED

the

example. The authorities decided,

In

as

circumstances.

comes

that

movement

peared

a

logistical advantage which

111

tive.

it

a

One

Office

Your

it

which is not

Indeed

still running at the rate of £325
passenger-carrying vehicle.helicopter of the capacity million, contributed towards
of the H-16 will
permit the mili¬ creating a wave of pessimism. It
tary to use the helicopter for en¬ made the public realize that there
tirely new functions. Such a heli¬ would be no large revenue sur¬
copter is expected to replace the plus available for tax concessions.
large Army truck under certain
Another reason for the setback
as

Paris

ap¬

movement.

Purchase
said

publications

Japanese securities

Established
Home

,

upward

partly
Mr.
Butler's
refusal
yield
to
pressure
in
favor

be

write

or

current

Yamaichi

Exchange

have also contributed towards the

ready to fly in
1954. Piasecki is also experiment¬
ing
with
gas
turbine
engines
which, if successful, should greatly
should

our

Securities Co., Ltd.

wise, both from the point of

occurred

1953

was

is well

Japan

at

bid and 21Va asked.

and

setback

was

Tele. NY 1-3222

market

counter

was

middle

unfilled

Piasecki

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

Phone: HAnorer 2-9768

Opportunities

common

the over-the-

on

present

a

after

$1,000,000.

Also,

Bought—Sold—Quoted

quoted

during the

$64,450,014,

earnings

$826,315.

were

gines1 is

INTERNAL SECURITIES

The

increased.

the

February,

factor

GERMAN

Investment

prob¬

developed
first

More

And Successor Companies

was

bright

will

like conditions

increase speeds.

RH 83 & 84

Telephone 3-9137

be

helicopters

however, that there would be
justification for such a move

gress in the expandingiu field
of
transport helicopters for military

while

an

attention

of

use.

machine

RICHMOND, VIRGINIA

to

later

Exchange has been attracting

increasing

holding 700,000
(par $100) as of December,
1952, has made remarkable prog-

and

Bell System Teletype:

ably
stock

looks

Government expend¬

recession in Great Britain.

LONDON,

4,600

engine

CRAIGIE&CO.

for

offices

British budget and, therefore, no likelihood of tax con¬
Another contributing factor, he points out, is, the
failure to reduce the Bank Rate.
Sees, however, no signs of

shareholders

chine.

■F. W.-

itures

branch

our

Vice-Presidents.

future

as

to

the

shares

possibilities and expect

MUNICIPAL BONDS

inasmuch

wires

cessions.

1,000 to 1,200

mend it to the attention of inves¬

NORTH and SOUTH

Direct

Einzig, commenting on* the recent setback in the London
Exchange boom, ascribes it to wave of pessimism cre¬
ated by the prospect that there will be no revenue surplus in

floor

new

backlog of unfilled orders.
growing company has other
attractive
qualities that recom¬

VIRGINIA-WEST VIRGINIA

General

Dr.

This

Since 1932 Specialists in

Douglas,

Piasecki's

NY 1-1557

.

Stock

at

at the end of 1952

LD 39

and

R.

Brokers

1954 that Piasecki had leased

000

STRADER,TAYLOR & CO., Inc!

L.

and
.

By PAUL EINZIG

workers
at
the
main
Morton,
Pennsylvania, plant and about 1,-

Life Insurance Co. of Va.

W.

Exchange
Exchange

St., New York 4, N. Y-

HAnover 2-0700

Frysztacki,
G. W. Speer, H. S. Pack, E. Deland

20 Vz

Herbert E. Greene

by late 1955.

Tel. REctor 2-7815

Dan River Mills

in

200,-

expected

BROADWAY, NEW YORK 5

Commonwealth Natural Gas

and

London Stock

ad-

Ardmore, Pennsylvania.
Employment there will be about
500 by the end of the year, and is

Exchange

Camp Manufacturing

Vice-President

Stock

NewOrieans, La. - Birmingham, Ala,
Mobile, Ala.

Ups and Downs of the

of

an

space

Members

American Furniture

25 Broad

on

International Airport, Chester, Pa.
Announcement was made Feb.

ftfc pONNELL & fb-

Bassett Furniture Industries

tive

York

Members American Stock

for

000 square feet at the

18,

Trading Interest In

credit

a

be expected

can

Members New

Thus if their

upheld

company

240,000

120

is

years.

e

out-

ditional

Since 1917

Stock

from

filing with the Bureau

Philadelphia.
leases

Stock

exemption

Steiner,Rouse & Co!

alert-

at

area

The

York

P. T. in

surplus

on

skirts

American

claim

company

an

tract with fly¬

Teletype NY 1-583

on

New

to

argument

square

Morton,

-■*

is

has

Piasecki, Chairman; D. R. Berlin,
President, and C. H. Miller, Execu¬
Manager,

of Internal Revenue.

a

reason

earnings is that the com¬
accruing E. P. T. at the
maximum rate although they in¬

owns

plant

one

biggest

it

and

minded personnel headed by F.N.

interesting sidelight of 1952

tend

foot

Piasecki is the

the H-16.

as

414,000

Exchange

120 Broadway, New York

BArclay 7-5660 I

is

and operates a

1920

Stock

This

why the Army, in particular, is so
anxious
to
test
out
helicopters

which

Member

circum¬

large net savings in cost to the

Corporation
Established.

such

clusively,

pany

H e1ic opter

Corporation

Under

area.

Bought—Sold—Quoted

(Page 2)

and 1953

to mind

is the Piasecki

New York Hanseatic

the necessity
high cost roads in the

Government.

hancement in value of growth se¬
curities. One company that readily
comes

eliminate

that manufactures helicopters ex¬

a

Common Stock

/

dent Manager, Coburn & Middlebrook, Inc., New York City.

than the truck, there may well be

Portland, Me.

Much is being said and written
these days about the

Associate

Louisiana Securities

stock—Herbert E. Greene, Resi¬

nor

stances, although the helicopter is
a
much more expensive vehicle

225 South 15th Street

Piasecki

will

cases

Y., Boston, Hartford, Providence
and

be,

to

sell the securities discussed.)

to

to construct

Manager

Coburn & MiddJelirook, Inc.,

CO., Inc.

Philadelphia, Pa.

Alabama &

Piasecki Helicopter Corp. common

particular security.

a

intended

not

are

Week's

Participants and

Their Selections

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

(The articles contained in this forum

&

This
Forum

A continuous forum in which, each week,

to announce

is the investment and
the

Thursday, February 2.1 1954

...

*b

.1:'

blessing.

National Quotation Bureaa
Incorporated

It

Established 1 $13

really belong to Britain
its

counterpart is

Continued

repre-

46 Front Street
CHICAGO

on

page

5

New York 4,
SAN

N.Y.

FRANCISCO

Number 5302

Volume 179

.

.

.

The Commercial and Financial Chronicle

(879)

More Than 5 Million Cars

INDEX

Can Be Sold in 1954!

B. S.

Articles and News

■

1954

Is

Year—Sherman

Key

•

Page

1

Adams__l___'

AMD COMPANY

Cover

1

By GEORGE P. HITCHINGS*

tfte outlook for consumer durable foods expendi1954, Ford Motor economist looks for a level between

tures in

;
x
#;

P.

—George

Hitchings

A MESSAGE TO

:_Cover

GARCIA

!____

and

3

'

you,

We

Oil—Ira

Continental

the 1952 and l953 totals, or near previous peak. Says, unless Y&rf unfavorable conditions set in, retail sales -of new
antMoobiles in 1954 can exceed 5 million cars, compared with "
5.7 mititim in 1953. Points out growth in total car ownership
occurs because of
(1) increase in number of households, and
(2) increase in ownership per household, both of which are
rising. Looks for replacements to provide bulk of market for
durables, particularly new cars. Ascribes slower rate of car
buying partly to return of seasonal patterns existing in a
buyers' market.

;

Palyi-_X_u._-_j.__

More Than 5 Million Cars Can Be Sold in 1954!

In presenting
.

Asia—Melchior

in

Vacuum

Ford Motor Co.

Manager^; Economic Analysis Department,

The U. S. Law
.

—Herbert

Cobleigh

4

Foreign Reproduction of Gold Coins
1

on

M.

U.

currently

market demand.

rate of
for dur¬

lower

This

♦

Bratter

4

Current Economic Situation Demands Careful Watching

Winfield W. Riefler___

99

6

_______

WALL

expenditures
able goods is part of the down¬
ward
readjustment
in
general

ularly true for

business

new

cars.

tures

for durable

consumer

t i

and

a c-

i t y

v

by the

from

used

low

cars,

Telephone: WHitehall 4-6551

^♦-Savings Banks—J. Wilbur Lewis

6

Prospects of Plant and Equipment Investment
—Dexter M. Keezer

Copeland Refrigeration

7

—Beardsley

Cross

for

Consumer

—Girard L.

most

expendi¬

goods

duced

build

$27.0

billion

the latter part

terms

of

of

and

creased

half

ferrous

This

1952

the
of

first
1953.

build

up

based

was

largely

temporary

on

expansion
durable

o

1953

at

not

after

The rate

President's Tax Reforms

—George

not be ex¬
pected to rtiove ahead at a steady
after year when

year

pace

can

economy

wars

The Automobile

levels

1952

in 1953

cycles1 in

period.
largely satisfied
in 1948, but the

of demand for the postwar

This backlog was
for

appliances

not

of

stock

consumer

cars

was

still

in total and age
composition ;when' the
Korean
War started in 1950. The backlog
adequate

plus anticipa¬

of demand for cars

drop

this

in
if

even

dur¬
the

over

employment and incomes

the

sharply

centuated

based upon

billion in terms of 1953
price levels. In part, this expend¬

rates in the

related to

1.1 million

a

growth in number of house¬
holds.
A large portion, however,

represented increased ownership
and replacement of durable goods
in

existing households.
This rate of
have

not

expenditure would
maintained

been

throughout 1951 and 1952 even if

production of cars and appliances
had

sion

been

not

of

curtailed by diver¬

materials

and expansion of

to

armaments

plant and equip¬
of

ment.

Retail

sales

ceeded

6.4 million in

sumers

also bought greater quan¬

cars

ex¬

Con¬

1950.

than
could have been maintained in
the following year or two.
The
cutback
in
production of con¬
sumer
durables was' so sharp,
tities of other durable goods

New

reflected

relative

households

the

Joint

Report, Washington,

in

total

ply

1953

.

•

21

Reese, ABA Head, Urges Bankers Educate Public
Sound Money

the number of
buying power

and

2o

Stuart B. Mead Recommends Clarity in Corporation
Annual Reports

225 unlisted
Regular Features

stocks and
As We
Bank

reduced
prices on
postwar
models in¬
duced owners of prewar models
to make the jump to ownership
of postwar cars. Most of these pre¬
models

new

scrapped
market

little

was

Previous

and

Canadian

owners

of the

make up the
buyers, found it

car

easier to obtain the kind of new car

that they wanted.

declines
the

in

It

(Editorial)

Insurance

for

Stocks

Even the sharp

;

•

Dealer-Broker Investment Recommendations

8

2

Downs

of

London




•

Indications
Mutual

of Current

Business Activity___

8

News About Banks and Bankers

Observations—A.
Our

Reporter

Our

Reporter's

Public

Wilfred

Teletype

40

NY

Exchange PI., N. Y. 5

1-1825 &

NY 1-1826

23

Report--.

27

Railroad Securities

Securities

Registration

Security

Salesman's

The Market

...

26

!____

in

Now

Prospective

Security

14

!

Securities

Utility

31

Wallaqe Streete

The

was

not

a

Corp.
C. A.

Dunham Co.

16

The State of Trade and Industry

cars

Manufacturing

Copeland Refrigeration

41

Corner

and You—By

Brunner

38

Offerings

cars

Security I Like Best

2

.__

Rohr Aircraft

5

Washington and You

Tracerlab Inc.

44

_,

the dealers abon

page

Glens Falls
♦

HA 2-0270

5

May

the

new

Singer, Bean
& MACKIE, Inc.

25

Governments

on

of

•

Schenectady

35
30

value

TELETYPp N. Y. 1-5

Chicago
•

10

NSTA Notes

Worcester

Vitro

*^ee "United Stales Investors' Stake in Canada" on page 12.

27

Weekly

COMMERCIAL

1

B.

DANA

COMPANY,

to

Reentered

Publishers

25,

C.,

SEIBERT, Editor & Publisher

WILLIAM DANA SEIBERT, President

Febru¬

at

Subscription Rates
United States, U. B.
Possessions,
Territories and Members of
Pan-American Union, $48.00 per year: in
Dominion
of
Canada,
$51.00
per
year.

Thursday (general news and ad¬
Issue) and every Monday (com¬
plete statistical issue — market quotation
records, corporation news, bank clearings,
and

Chicago

city

news,

Offices:

3,

III.

135

etc.).

(Telephone

La

Salle

St.,

STake 2-0613);

BROADWAY, NKW YORK 6
WHitehall

3-3960

Teletype NY 1-4040 & 4041
Direct

Bank

and

Note—On
rate

of

Record — Monthly,
(Foreign postage extra.)

Wire to

Quotation

$33.00 per year.

the

South

INCORPORATED

39

Other Publications

Every

vertising

WM V. FRANKEL & CO.

in

Other Countries, $55.00 per year.

Thursday, February 25, 1954

Other

Corp. of America

Eng¬

<fe Smith.

second-class matter

as

1942,

Subscriptions

HERBERT D.

E.

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

ary

'

9576

London,

Gardens,

Copyright 1954 by William B. Dana
Company

Park Place, New York 7, N. Y.
2-S570

Drapers'

land, c/o Edwards

and

CHRONICLE

Reg. U. S. Patent Office
WILLIAM

ST., NEW YORK 4, N. Y.

•

Exchange"

Funds

1953

PREFERRED STOCKS

Nashville

Stock

Washington Ahead of the News—Carlisle Bargeron

FINANCIAL

Boston

8

Einzig—"Ups and

state

Manchester, N. H.

*

...

of

Continued

'•

44

Securities

half

deterrent because

TELEPHONE HAnover 24300

bonds.

23

Bookshelf.

last

the

market

Cover

Coming Events in Investment Field

who

postwar cars,
bulk of

then

were

there

because

for them.

See

Members New York Stock Exchange

Albany

trading markets in

'

the

Spencer Trask & Co.
BROAD

We maintain firm

30

i

REctcr

25

26

Imrie de Vegh Discusses Comparative Performance of
Mutual Funds

car

Furthermore,

war

Teletype

NY 1-3370

on

v

25

,

Telephone

Dlgby 4-1680

The decline in

prices in 1953 undoubt¬
edly stimulated car ownership in
households previously without a
car
and
multiple ownership in
those households with only one
car.

Street, New York 5

inadequate sup¬

an

to

Manager

Trading Dept.
☆

18

The

specialized in

Unlisted

:|s

Rukeyser Terms Recent Business Readjustments Helpful.

Published Twice

have

*

•fr

JOHN F. REILLY,

24

U. S. Investors' Stake in Canada Analyzed by James R. Clarke 12

From

used

D. C., Feb. 9, 1954.

For many years we

Members New York Stock Exchange

were

stock which

car

within households.

traded in

by Mr. Hitchings before
Committee on the Economic

also

growth and scrappage

still

goods was

statement

Surpluses—Arthur I Moore—._
!|!

Business Man's

sales

car

in

*A

were

1954.

however, that

spending for these
forced below the free

and Farm

of

factors not likely to con¬

on

goods in 1950 to a record total of

was

Policy

drop

ment and income levels

based

>

will be ac¬
because these employ¬

tinue in

iture

levels

expanded

The

mid-1953.

buying after Korea pushed
consumer
purchases of ,durable

net

BURNHAM AND COMPANY

22

could have continued to rise from

tory

$32.4

indicated

was

area

21

Eisenhower Uruges Wider Use of Atomic Energy

almost

occurred

to Private Investment

Terborgh

G. Keith Funston

Farm

Sales Record

able expenditures

Favorable

"

Bought— Sold

15 Broad

en¬
durable goods
production and construction. The J tirely in the automotive segment.
Retail sales of cars rose to more
curtailed production of cars, ap¬
pliance^ 1 and
housing
during than 5.7 million, compared with
World War II built up a backlog
only 4.2 million in 1952. Some

create

—

-

not

The expansion of consumer

I

20

Getting the Saver to Own Shares in Altifetiran Business

sustained.
Our

Liberty Products

16

.___

Business Will he Better ACain!—Paul C. Kimball

tween the 1952 and 1953 totals.

be

Products

.

was even

factors

on

14

What We Face in Korea—Arthur H. Dean

likely to be repeated in 1954, this
year's level will probably be be¬

Hitchings

P.

Geo.

based

was

I

Federal Electric

12

steel

the

in the first half of the
Because this higher level in

year.

that

rate

could

In¬

price levels).

metals

higher

inventories by
business and

a

1953

supplies of steel and non-

billion in 1953.

f

goods

consumers

billion in 1951 and
in 1952
(again in

$28

10

Create Purchasing Power by Tax Relief at
Lower Income
Levels—Stanley H. Ruttenberg

strike, coupled with the leveling
off in defense requirements, per¬
mitted an expansion of consumer
spending for durables to $30.2

in

up

to

Spencer

1954—A Year of Transition—John H. Vogel

re¬

were

the temporary

C. A. Dunham & Co.

Supply and Demand for Investment Funds During 1954

structure

stocks

Company

9

Ruml

as evidenced

price

car

dealer

Dept.

STREET, NEW YORK

Equities Investment Program of New York State

partic¬

was

your

obsoletes into cash!

Taxation and Investment in the Business Outlook

The

and YOU!

you

change

can

Obsolete Securities

,

3

account

of

exchange,

the fluctuations In

remittances for for¬

eign subscriptions and (
• prtisements must
be made in New York funds.

PLEDGER

& COMPANY INC.,

LOS ANGELES

4

The Commercial end Financial Chronicle

(880)

ture

Continental Oil

record

By IRA U. COBLEIGH

|

Author of "Winning in

[}

Wall Street"

expansion

steady

The U. S. Law

of

Continental
with

eight refineries

owns

By HERBERT M. BRATTER

capacity in excess of

total

a

The largest
City, Okla-

Referring to private minting of British sovereigns in Italy

homa, which alone can handle
over 50,000 barrels daily,
In transportation, Continental
minute.
has extensive pipeline interests.
Continental has estimated crude It has a 20% interest in Great
reserves
of around
550
million Lakes Pipe Line transporting gas-

counterfeits, Mr. Bratter explains United States statutes out¬
lawing reproduction or importation of reproduced United
States coins. Says both manufacture and circulation in U. S.
of reproductions of American
gold coins is also prohibited by

from the Gulf of Mexico to Baffin's

125,000 barrels

Bay.

these

of

in

is

a

day.

Ponca

and the refusal

little dis- /pletely
integrated oil company
appointing, generally, to those in- starting off with a goodjsupply at
vestors whose major market stake
cmde^ Let's talk about that for a
in

was

year

the

was

a

quality

oils.

As

(the
the

a

these

group

oils,

not

investors)

lagged behind
the

Dow

Jones

average

-

performance

about

by

There

5%%.
was

of

lot

a

weather

warm

in many areas,

1953

Its

gas.

crude

oil

output

averaged 118,900 barrels a day.
These are all very interesting figures, but where is the oil coming
from?
Almost 80% of the total
the

from

comes

four

of

states

.sumption; and
there was eviIra U.

Cobleigh

icompanied

supply,
acsectional
price
some
categories,
however, the 1953

this,

figures

coming in suggest
increase for the in-

now

earnings

an

dustry

perhaps

of

scarcely
mism.

which-is
pessi-

5%,

for

occasion

an

Actually

single

over-

by
in

^softening,
Despite

dence of

the

most

likely

for the soggy ticker

is from California.rshce of the Southwest.
Well over 10,000 barrels a day0,
One
of
the most
impressive
of Wyoming output is being de-1 things
about Continental is its
livered
to
the
Platte
Pipeline continuously sustained increase in
(20% owned) and hopes for ex- gross operating income.. The last
panded future Wyoming production lie in low-gravity oil formations in the so-called Sussex

five years, in particular, have witnessed a steady climb here from
$315 million for 1949 to $397 mil-

lion in 1952, and $476.8 million in
1953.
This is
not a
lopsided
promising single area for large growth
as
daily production of
scale oil extraction is in the West crude and sales of refined prodTexas
field.
Here
Continental uct are advancing in a parallel
perts

Creek

Field.

feel

now

Many

that

the

domestic and Venezuelan production

has

action

oils

of

threat

of

is

probably

return

a

full

of

the
blast

Iranian oil imports at a time when

together

to

seem

assure

a

than
adequate supply, in
(you'll pardon the expression) a
crude way. The titans of oil have,
more

however,
the

coped

with
supply be-

effectively

problems of

over

135,000

some

Kansas, near the famous Hugoton

ing

and

kansas

250,000
far

not

$9.6

million

will be permitted to glut our mar-

total

$11.4

ket,

off-shore

must

ing

industries
moment

and

has

"growth"

never

read

men

for

the

of

their

a

early

"Commercial

Financial Chronicle"
of

petroleum

stopped growing since in-

formed

copies

that

authentic

our

and

by the light

wick-fed kerosene lamp. This

a

has

growth

stemmed

not

only

from

an

to

in

for

1952.

It

It

a

$10

the

million

Lake

was

expansion

Charles

refinery.

It

ftal to be regarded
the major oils,

production

and

has

a

%th interest in

a syndicate workthree oil fields and two
fields. Continental's share of

in

gas

the present take is believed to be

around

1,500

as one of the
growth situations among

should iavored

1953.

Continental is also interested in#

barrels

day from

a

To

provide

expansion

money,

financing
was
necessary
starting originally with a short
term bank loan in 1952, I
.believe,
some

and

now

extended to mature

over

five year period ending Feb.
1,
1959. This debt of about $52 million is followed by 9,736,916 corn-

a

this tideland operation.
Acreage now held by Continen- mon shares listed on N.Y.S.E. and
tal is above 10 million, and the jnow selling at about 58. 'Assumcompany has been both
aggressivej^ng the indicated dividend of
and successful in its search for $2.60, the current yield is 4.5%.

from the

new

from the

of

1953,

found

251

net

population dynamic, but
steady array of new uses
for petroleum and its de-

Ararea
of

steadily increasing.

and louse up
our
present
petroleum price structure.
Apart from the items above, we
of

in

acres

—

excellent current gas production, is this magnitude of capital exGross from gas production has^pansion that has caused Continenbeen

remember

provement

field,

and there is no reason to
believe that Near East barrelage

one

west

$90 million in 1952,
and a little less last year, includ-

fore,

is

in

acres

oil.

For the first nine months

Continental

completed

oil

Moreover, CLL, selling at almost
14 times 1953 earnings of $4.20 per
share, has, I believe, the highest
current price/earnings ratio of

wells, and hit 87 dry
rivatives.
First
kerosene,
thenr holes. For the same period in
gasoline,
lubricating oil; crude 1952, the net oil wells were 177 any of the major oil equities, with
for
heating boilers, homes and with 85 dead ducks. That's mov- the exception of Amerada,
propelling diesels; then natural ing the batting average up
-Q Obviously, therefore, investors
gas, now piped to over 90% of
roughly from .666 to .750 in a are placing great
weight on (1)
the land area of the U. S.; and
single year.
the traditional excellence of Conmost
recently
jet
and- rocket
jn addition to all this land and tinental management, and
(2) the
fuels, and the petrochemical evo- search we've
mentioned, Conti- aggressiveness and success of Conlution
bringing new dimensions nental owns a
75%
interest in tinental's oil exploration program,
to the plastic and textile indusHudson's Bay Oil & Gas Co. This and
(3) the prospect of future
tries; not to mention LPG.
So doesn't loom
large in the produc- location of important oil by virtue
even
the oils gave Winchell no
tion figures 0f the moment
(about of extensive holding in many fav}■ I 5,
5 i
-y ?,re 4'000 barrels a day) but the po- orable geographical areas, and (4)
still gliding forward statistically,
tential is fantastic.
•

with

a

demand expansion for 1954

estimated
over

somewhere

around

4%

last yeai.

So, taking note of the overall
factors briefly recited above, as
a

of

sort

down to

background,

our

let's get
stated topic for today,

Continental Oil.
ards

By all the stand-

by which competent analysts

judge

a

successful

terprise,
given

a

industrial

Continental

top rating.

would

It is

a

en-

be

com-

Hudson's Bay

Qil

&

land

Gas

in

has

North

9,800,000
Canada

acres

in

of

which

may lie one of the great oil fields
of the future.
And just to add
an

inter

-

continental

the enlarged future earning

er created

llne rework,

i' The buyer of oils will skip Continental, and consider items like
will'Atlantic, Sinclair, or Richfield, if

flavor

to

Continental, I read recently CLL
is part of a syndicate that
drill for oil in the Egyptian desert,

his goal is current yield. If, howvirtue
of ever> he is willing to exercise a
producing little
long-range patience, and

Altogether, both by
present holdings and
wells, and a vast spread of oilprone

land under control for fu-

accept a lower cash payout today,
in the hope of some sort of stock
was

wide

Exchanges at regular commission
'

i

rates

.

Bums Bros. & Denton, ino.
DIgby 4-3870

W ires

to:

37 Wall Street, New York 5

Toronto




•

Montreal

these

coins

,,

100%

from any foreign
country, or pos¬
with
intent
to
sell, give

in

a

away, or in any other manner use
the same, except under

Au¬

1952

gust

an

of

lication

p p

heard for

was

order

in

the

gold

Herbert

Bratter

M.

used

United

stock

(there

on

dividend

in

may

or

or

simili¬

or

the in¬
of

any

States

country

the

or

issued

of
as

were

currency

as

Kingdom

authority of any foreign govern¬
ment shall be fined not more
than

hence

and

A

in

their present private manufacture
did not constitute an act of coun¬

who

person

counterfeit

in

the

more

severe

section

knowingly sells

American

United

gold

States

coins

incurs

the

penalties of another

of the

law.

Section 485 of
money.
The
Swiss
Title 18 of the United States
Code
judgment is not acceptable in
reads:
London, where it is pointed out
"Whoever falsely
that gold sovereigns have not lost
makes, forges
their legal-tender status and that, or counterfeits any coin or bars
moreover, some sovereigns
have in resemblance or similitude of
been struck at the Royal Mint in the gold or silver coins or bars
coined or stamped at the mints
recent years. -

terfeiting

With the details and subsequent

history

of

we

case

which

here

concerned;

French

the

gold

Mint

which

bearing
then

are

in

that

old

sold

Government of France

market

coins

currently minted by the

are

French
and

not

are

with

nor

above-mentioned

the

on

dates

by

the

the free

This

country.

article deals with the status under

American

law

of

gold

pieces

privately manufactured outside of
the

United

of

States—reproductions

foreign

coins.

and.

should

It

American

be

foreign

reproductions

coins

of

the

United

come

to

the

attention

of

the

to

effect

been

that such

seen

at

legal

bring

to

Wash¬

of

rumors

imitations

it is
United

well

the

into
to

hold, buy and
sell any gold coins of the United
States which are in good condi¬
tion; also any gold boins of foreign
as

as

governments not made after April
that

coins
too

are

rare,

in which

case

they

example of the

latter
gold

the recent South African

coronation
an

shown

be

can

subsequently-minted

be imported, owned and

may

traded. An
are

it

unless

such

coins.

excellent

sovereign

the

case

reproduction

of

of
a

gold Louis, whether
privately or by
government, the U. S. Gov¬

minted
some

In

as

passes, utters, pub¬
sells, or attempts to pass,
utter, publish or sell, or bring into
the

United States, from
any for¬
eign place, knowing the same to
be false, forged,
or
counterfeit,
with

intent

politic
son,

or

or

to

defraud

corporate,

body

any

or

any

per¬

possesses

any such false,
forged, or counterfeited coin or
bars, knowing the same to be
false,
forged
or
counterfeited,,

with

intent
or

to

defraud

corporate,

body

any

or

any

per¬

son—

"Shall

$5,000
than

The

not

years, or

than

more

imprisoned

or

15

fined

be

not

more

both."

manufacture

and

the

cir¬

culation

within the United States
of reproductions of American
gold

coins, either

or both, is also pro¬
by the Gold Regulations.

hibited
Under

the regulations

counterfeit
American and foreign gold coins
are
subject to seizure and for¬
feiture to the United States and

the persons

having them
ject to prosecution.

are

sub¬

In the law cited above the term

"foreign government"
fined.

Does

the

is

it

mean

is

not

only

existence

de¬
gov¬

the

at

a

time

prohibited action? Does it

include

a

government in existence

when

the

passed

genuine coin.
If, however, the

United

or

ernment

any

the

"Whoever

lishes

of

presumably would have
of identifying the piece
as a reproduction and it would be
admitted
into
the
country like

United

or

ernment
way

the

within

money

States:

or

abroad

of

or in resemblance or simil¬
itude of any foreign
gold or silver
coin current in the United
States,
or
in
actual
use
or
circulation

politic

gold regulations

offices

assay

States,

administered,

present

States

have

abroad.

Under the U. S.
as

no

gold

States

ington, despite occasional
have

gold

that

noted

and

no

goes

of

United

foreign

the

$100."

that sovereigns

ground

the

of

token, disk,

money, either under the authority
of the United States or under the

down

longer

thereon

of

any

Court

turned

the

likeness

design, color,

scription

the request on
the

the

to

coins

Swiss

Federal

no

in

as

such

pieces.

The

any

device

produc¬
of

officer

proper

States,

tude

con¬

nection with
tion

other

United

extradition

an

authority
Secretary of the Treasury

the

or

but

American
no

law

was

longer in existence

reproduction today, such as the Government of
Jearn more about. CLL
could be so identified, it would be Latvia or Manchukuo? Does it in-f
between 48% and 62% in
elude
governments of the more
1953.
It is
demonstrably a better subject to confiscation by the
distant past, like that of the
Hapsequity today than it was in 1953. government as counterfeit money.
This applies whether the repro¬ burgs or ancient
While not in a position to offer as
Rome? This point

STOCKS

Tel.:

declare

to

/sold

GOVERNMENT, PROVINCIAL,
MUNICIPAL
CORPORATION—EXTERNAL and INTERNAL

Canadian

time

well be the kind of oil
share he'd
dike to

BONDS

on

a

as

June, 1951), then Continental

Canadian Securities

Executed

land

by heavy capital im- 5, 1933,

Pavements, and (5) the efficiency
°.^ transport through a large pipe-

dividend

Orders

pow-

and

Switzer¬

ex-

most

is well represented with wells in^manner.
,
Crockett,
Andrews
and
Ward;# In relation to its size, ContinenCounties, all currently under the tal has been carrying on, for some
most active sort of exploration.
time, a very large scale program
In gas production, Continental of expenditure for capital im-

reason

courts

sesses

In

12%

Meadow

Swiss

the Continent.

mpg East from the Rockies to the
Middle West and including a big

is derived from a total of 13 states.

About

Britain

main territory is a wide belt run-

California, Kansas, Wyoming and
Texas; altogether some production

heating

of the

the Gold Regulations.
Points out, however, the question
oline north to the Upper Missiswhether gold coins are legal tender in U. S. is still obscure.
sippi Valley; 20% interest in the
Platte Pipe Line; 50% interest in
The private
minting in Italy of cable section of the law is Section
Continental Pipe Line and 55%
reproductions of British gold sov¬ 489 of Title
18
of
the
United
of Rocky Mountain Pipe Line plus
ereigns of full gold content has States Code, which reads:
a number of other smaller pipecaused much discussion in finan¬
line facilities,
"Whoever, within the United
cial circles in
In
marketing,
Continental's
States, makes or brings therein

barrels, and in the neighborhood
of 2.8 trillion cubic feet of natural

which reduced

con-

Foreign

on

Reprodnction oi Gold Coins

second pjiase of an inte¬
grated oil company is ref^ni&g*
The

of this progressive enterprise whose petro¬
leum prospecting is indeed Continental, running all the way
past

of

crude output.

A petit panorama

The

drilling, CLL should be able
its
excellent
past

continue

to

Thursday, February 25, 1954

...

•

Ottawa

TWX: NY 1-1467
•

Winnipeg

or

market swings
TXL, it does have

as

Amerada

some

pretty
solid investment merit
right now,
and some rather alluring vistas for
expansion in assets and earning
power.

billing,

Continental lives up to its

geographically;

and

it

should be a pretty decent market
performer if it lives up to pros¬

pects.

.

duction is that of an American or
a

foreign
It

is

gold

coin.

appears

the

against the law to manu¬

facture in the United States or to

not to have

American

bearing

on

courts.

this

come

Of

before

possible

point is the

fact

unless that during the recent World War
properly authorized, a replica of the United States rejected a re¬
any coin. This definitely applies to quest that it
mint Maria Theresa
import

the

for

gold

factured

during

sale

or

use,

privately manu¬
Italy or elsewhere

coins

in

recent

years.

The

appli¬

silver
in

dollars

Ethiopia,

dated

even

1780

though

for
a

use

supply

Volume 179

Number 5302

The Commercial and Financial Chronicle

...

r

fr

'

*-i V:

|

5

(881)

i;

%

cf those coins would have assisted
in the

prosecution of the War.
case
of the
privatelyminted sovereigns referred to at
the beginning of this article we
In

the

noted

that

ment

<r

British

Govern¬

Retail

State of Trade

that sovereigns still
legal tender in the United
Kingdom. The corresponding sta¬

Observations...

Output
Trade

Commodity Price Index
Food Price

possess

Auto

and Industry

tus of United States gold coins in
the United States is not clear. The

Act

Production

Electric

Carloadings

holds

the

Steel

The

Your

J

May 12, 1933 as amended
by the Joirit Resolution of June 5,
1933, inter alia provides that U. S.

riod

to

erance

provided

by law for the
single piece," shall be legal tender

for

all

debts, public and private.
However, since all gold coins not
of recognized special value to col¬

lectors of
in

were

livered

legal

and

rare

1933

to

unusual

required

the

tender

coins

be de¬

to

government, the
gold
coins
is

of

obscure.

Industrial

Total

gold

coins,
unless
"below
the
weight and limit of tol¬

By a. WILFRED may

Business Failures

of

standard

-

Index

Production

ended

7%

New claims for
for

fourth

the

tinued

rise.

to

come to hand which are particu¬
interesting because, with a simple approach, they clearly
highlight some of the more important inherent nettlesome diffi¬

It continued, however,
like

week

a

culties.

ago.

year

slight increase in the

order level was noted

still pressing for price concessions.
Indications point to some evidence of a leveling off in un¬

London Stk.
sented

by

Exchange

a

of

her

of

increase of the gold

an

would

create

Security
would

a

and

reserve

false

feeling of
prosperity,
and

therefore

stimulate

both

wages demands and the Stock Ex¬

of

fully

are

aware

the

undesirability of such a
one thing, the fact that
many people are making money in
a
rising market would increase
boom. For

the

difficulty of resisting

sive

claims.

wages

should

rise go too far the
position would become vulnerable,
and

recession would result in

a

spectacular

slump,

Stock

which

.

a

Exchange

would

not

help

matters.

There

is, however, another side.
Owing to the large number of
small investors a high level
of
Stock
Exchange
prices
would
create widespread vested interests
against

return

a

Government.
a

change

cause

flict

a

It

behavior,

of

is

the

Socialist
that

assumed

government

would

precisely that class

constitutes

the

"floating

in

January to 867, the highest toll

month ago.

concerns,

reflected in "Dun's Failure Index" remained

as

busi¬

listed in the Dun & Bradstreet Reference Book.

This rate

was

up

considerably from the 26

reach¬

a

uary

concentrated in retail trade where the toll climbed to

was

highest level since mid-1942.
Casualties were heavier in all
retail lines except food and drugs.
The upturn was particularly

the

sharp among apparel stores where more concerns succumbed than
in any

month since early 1950.
in

rose

influence

next

the

result

general election to

of

the

the

considerable

a

January

in

What is more, should the So¬
cialists return to office, and should

they

want

tional

this

to

nationalize

addi¬

industries,| they would find

costly

Stock

as

result

a

Exchange

of

prices.

high

During

1945-50

they were able to acquire
industry after industry at bargain
prices, because equities were on
the whole undervalued, and com¬
pensation
holders
Stock

to

was

dispossessed stock¬
paid on the basis of

Exchange

level

of

Stock

tions

would

prices.

not

high

A

Exchange

quota¬
further

prevent

nationalizations, but stockholders
receive

would

adequate

more

compensation.

ing weekly, states

this week.

Quite the contrary it lends solid
theory of the Eisenhower

"rolling adjustment"

Steelmaking operations have held a steady pace within the
range of 74 to 75.5 % of rated capacity since the first of

narrow

And the industry is expected to hold that

the year.

pace—possibly
weekly

gain slightly—during the next few months, this trade

last
inventories.
It soon became apparent that the "correction" was to become in¬
dustry-wide. Then the manufacturing climate cooled a bit, and
Readjustment in the steel market started as long ago as

May when a few customers started to correct heavy

had

and lasted longer than some

expected, continues this trade journal.

The trend

the London Stock

on

a

degree by Wall Street. It is
than

coincidence

mere

large
more

that

the

the second week of
February took place almost at the
same
time as the slight setback
in

change

in

Wall Strbet prices. The link is

largely psychological, for the
tent to which British

ex¬

and Ameri¬

investors,

arbitragers,
and
speculators operate in each other's
can

market is

upward
in

better
survey

negligible. But

an

as

than
—

any

downward movement
is

Street

Wall

London

now

or

considered

indication

any

public

—

in
far

opinion

of American opinion

about the likelihood of a business

recession.

And

this

all, overshadows

factor,

every




after

other.

this

of the all-important rate of new
decline in steel production. Cur_-__,
rent bookings of most firms are higher than they have been for
the past two or three months, it reports.

rate very quickly. Yet a check
orders gives no sign of further

Individual

steel

orders

are

smaller

"The

ago,

reflecting customers'

This

year

check.

holds

Iron

to-day

than

true

at

both

desire

mill

resulting

investment

To

has been

cor¬

dividends.

the Formula Technique

on

a

from

policy

"Normal value" is defined

formula plan, to escape to

pitfalls and

prevalent

the

he wants it.

spring up¬

production, they are not counting on much increase
in buying from their No. 1 customer. They feel that some of the
recent upturn in auto buying is a strike hedge, and not geared
to production, citing scarcity of warehouse space in Detroit as
evidence that some firms are holding "protective stocks" as well
regular inventory, states this trade authority.
Even a short strike could change the market picture

dends.

by average dividends paid during the same

period. Deviation of market prices from such normal value should,
maintains, determine the investment position of a fund—that

he

is, the division of assets between stocks and bonds or
When a stock gets too far above that "normal"

sale; when too far below, a buy.
ratio; for instance, when the price

a

dollars.
yield, jt is

He works with a variable
is IV2 times his "normal,"

only 10% is held, when 67% of normal, the holding is increased
90%.

a

' •
r
'
that not only is there
.

The author believes he has discovered

long-term

correlation

between

,

prices and dividends which is

statistically significant, but also that deviations of market prices
from this definition of normal
value have been of the same
order of magnitude at major tops

and bottoms in the stock market.

Limiting Factors
While

these

techniques

are

interesting

and

important, two

fallacies, in operating on these theories centered on divi¬
dend-yield in present-day markets, occur to us. In the first place
there is the impact of supply-and-demand—that is, the overall de¬
mand for common stocks (secularly enhanced by the growing and
main

widening legitimacy of the equity share); and second, the growing
popularity of a particular kind of common stock, that is for the
Dow-Jones Blue Chips, other blue chips and pale blue chips,
growth stocks—all these being evaluated differently from the
many much
higher-yielding issues, not glamorous or otherwise

but value-packed. Will the market dichotomy in
between the Blue Chips and non-Blue Chips widen

popular,

yield

the

in

a

the first things it would do would be to wipe
out price concessions, says "The Iron Age."
A bright turn in nation-wide new car sales which could
ease the industry's soaring dealer stocks was reported on Friday
last, by "Ward's Automotive Reports."
Domestic dealer inven¬
tories on Feb. 10 climbed 5% above the Jan. 31 record high.
"Ward's" said Feb. 1-10 new car sales b,y domestic dealers

pragmatic factors seem to us to undermine the use¬
dividend-yield for market-timing; although we do not,

These
fulness of
of course,

us

contradict the complete propriety of basing appraisal on
of long-term return. It is unfai^ or irrelevant of

estimation

the

to inquire

what the author's attitude was toward the 1- and

Continued

on

2%-

page

MASSACHUSETTS
It

most states,

Massachusetts

means many

Or "embattled farmers" and "Bunker
Or the rich American writing
But

An

to

the investor, it's

area

Bates

things to

"widows' walks" and "Gloucester schooners"

means

of opportunity

Fine

Haverhill

National

Dewey

& Almy
Utilities Associates

S.

Lynch,

Electric
Shawmut Bank.

Springfield Gas & Light
United

D. Warren

we

these securities ourselves,

seller you want*

...

Plymouth Cordage
Springfie.'d Fire & Marine Ins. Co.

of Boston

Hailingsworth & Whitney

Here at Merrill

people.

.

Co.

Kendall

Spinning

Bank

.

industrial giant—still growing.

an

Insurance Co.

Eastern

.

of Hawthorne, Emerson, Thoreau.

Manufacturing

Berkshire

Ilill"

many

represented by companies like:

Boston

States

Envelope Co.

& Company

either maintain active markets on
think we can reach the buyer or

or

through 112 coast-to-coast offices

linked by

65,0(30 miles of private wire.
Want

to

find out?

just contact—

Trading Department

daily rate above that in the preceding

highest 10-day selling period, a feat not recorded since
before last October, adding that a 20%, hike in Plymouth output

month's

is

on

tap in two weeks.

This

bright

turn

in

showroom traffic, if continued, could
peak level of more than 600,000

shave stocks below the Jan. 31

Continued

on

page

34

or

narrow?

First National

One of

started the month off at a

the current annual rate of divi¬

as

multiplied by the normal ratio of prices to divi¬
That normal ratio is derived by dividing average prices

Like

Although steelmakers have heard some talk of a

hurry.

optimism and pessimism.
a fairly regular

from

prices and the long-term trend in

warehouse

And
price and service are the key words in steel selling. Both mills
and warehouses are going all-out to give the customer what he

as

10-year period, about
determined by dividends,

any

to

and

Age."

when

May

they were

Competition is the strongest factor in the market today.

wants

Wilfred

A.

dend payments,

hold inventories in
levels. In
some cases warehouses are
urging users to buy small quantities
in the hope that they can increase their share of business, declares
a

over

premise he arrives at

ordered

an

Now the big order

backlogs of last year have just about melted away and any de¬
cline in new business would have to show up in the production

turn in auto

Exchange is influenced to

between

Getting
On

five

steel order cutbacks became deeper

degree.

balance

the

going to fall flat on its face, "The Iron Age," national metalworksupport to the
Administration.

that

contends

he ties his finding that there

this

to

geographic regions.
The
Middle Atlantic toll reached a postwar peak, while casualties in
the South Atlantic region climbed to the highest level since 1950.
All areas except New England reported more January failures
than in the two preceding years.
The steel market gives no hint that the nation's economy is
Failures

notes.

may

Genstein

for the latest 10 years

a year ago,

postwar high for the month of January.
All of the increase in mortality between December and Jan¬

ing

anomaly

imponderables.

steady at the December level, 37 casualties for each 10,000
nesses

of the million

floating voters that swings
balance, this consideration

a
constructive

55% of all variations in stock prices are

relation to the number of op¬

The annual rate of failures in

even

two middle-class

Mr.

relation

falling to $29,592,000, the lowest volume
since this past August.
The downward trend was occasioned by
a decline among failures involving liabilities of $100,000 or more;
these larger failures were the lowest in the last half-year.
On
the other hand, casualties involving smaller amounts increased

erating

deficient in
solution by way of
programming.

being relatively

elements of forecasting.

liabilities dwindled 32%,

vote." And since it is the attitude
or

while

showing the impossibility of successful
forecasting, and then actually advocating a
technique which itself importantly embodies

with

a

writing by " sophisticated ob¬
scene, this book is

investment

And the author does not avoid the

month since May, 1950.
Casualties were more numerous
than in any other January in the past 12 years.
Contrasting with the increase in the number of failures, their

from

Orange,

South

of first

for any

slump, and this would in¬

losses to

which

of

7%

Court,

coming through with

88% above the like 1953 week.

exces¬

Moreover,

the

of the

affirmative

rose

Investment Research

pp.

existing techniques and the foibles in investor

prevailing when the recent rise started several months

Business failures

a

particularly strong in de-bunking the flaws in

pay

change boom.
The authorities

much

Like

2,119,900 in the week ended Feb. 6, the report disclosed.
This
was a dip
of 8,200 from the preceding week—the first decrease
since mid-November.
The total, however, was almost double

were

(86

University

45

servers

Feb. 13, meanwhile, new claims for job¬
declined for the fifth straight week.
They dropped to
318,700, off 45,700 from the preceding week and 150,178 less than
in the week ended Jan. 9.
But new claims in the latest period

corresponding in¬
floating external
liabilities. Moreover, the evidence

crease

S. Genstein,

In the week ended

Dps and Downs of the

is

consider

STOCK

volume

N. J., $3.50).

employment, according to a government report.
The number of
workers getting state unemployment compensation declined to

less

will

we

MARKET
PROFIT WITHOUT FORECASTING, By Ed¬
Press,

ago.

Continued from page 2

these

of

little

compact
gar

the past week with buyers

the level

first

The

unemployment insurance it \^as reported, dipped
consecutive week, while continued claims con¬
A

Investing Difficulties

investing books have

larly

somewhat higher in the pe¬

was

Wednesday of last week.
below the level of the

on

about

be

production

Two

Merrill Lynch, Pierce,

Fenner & Beane
NEW YORK 5, N.

70 PINE STREET

Offices in 106 Cities

Y.

26

6

The Commercial and Financial Chronicle

(882)

.

Thursday, February 25, 1954

,f

i

economic

Current Economic Sitnation

stability at high levels
employment, and second, that

of

the
_

achievement

of such

stability

without appropriate monetary pol¬

Demands Caieinl Watching

icy is probably impossible undermodern conditions.

By WINFIELD W. RIEFLER*

What

Can

Monetary

Policy

Equities Investment Program of
New York State Savings Banks
By J. WILBUR LEWIS*

Do?

Assistant to the Chairman
Board of Governors of the

Federal

Reserve

Federal Reserve System

balanced inventories

contending business reaction to

economist,

to remove

points out Federal Reserve Board index of Production has

probably declined 10% since last July,
decline

the

in

1948-49

as

the full

liquidation.
course,

availability of funds in the capital markets.

in

cycle.

the

the

three

tent

to hand

come

the

on

eco¬

during the next 6 to 9 months.

to

Whatever the

rather

con¬

self-correcting
to envision

pre¬

in

that

sented

were

July

or

It

inventory ad¬

an

has

also

fected, of course, by
in defense outlays.
Final demand

been

the

af¬

decline

at retail has held

decline in employment, moreover,
has been confined for the most

part to manufacturing industry in
response to a decline in commod¬

ity output.

As a result, a sizable
absorption of excessive inventories

being effected.
whole, however,

than

a

Inventories

as

still higher

are

year ago.

Although information now be¬
coming available indicates that
the

reaction

to

sharper than

date

has

been

known when the

was

Economic Report was in prepara¬

tion, it does not seem to have
shaken the general expectation of
businessmen that it will be short¬
lived.

This

continued

is

suggested

small

the markets for

the

by

both in

response,

primary commod¬

ities and for securities, to the de¬
clines in output that have already
taken place.

uniformly

decline.
port

Since

was

the

on

the

expressed

outlays

by

look

of

Economic Re¬
the

of

that

state

authorities
the

side

prepared there has been

further confirmation
there

view

and

municipal
help bulwark

would

industry has also firmed in recent
now

As

result,

a

it

does

not

unreasonable to look

appear

for another

high
tion activity.
Against

the

past.

As

Federal

mittee

appropriate

this

year

view

in construc¬

must

be

set

been

customary in
early as last May,

Open
bank

on

primarily

Market

operating

began

pressures

Com¬

to

not

reserves,

it

because

foresaw

at

recession in the mak¬

a

financial

than

markets

it

consid¬

ered

appropriate. This policy was
further developed in June, while
in July the Federal Reserve Board
relaxed the reserve requirements
of

member

these
to

The

banks.

actions

two

increase

effect

combined

reserve

funds

of

was

avail¬

able to member banks by over
$2 billion and to change the tone
of the money

restraint

to

economic

markets from
of

one

outlook

one

As

ease.

shifted

in

sub¬

Market Committee operated again
in
September and October and

again

in

viding
funds

by pro¬
in
advance
the
reserve
usually required to meet
drains

seasonal

end.

this

The

reversal

the

released

these

year

by

seasonal

the

drains

January have in turn been ab¬

sorbed by the Federal Open Mar¬
ket Committee.
During the last
two weeks

all of

Banks

serve

the Federal Re¬

reduced

have

discount rates.
The

sponded to
reserves

the

for

duced

an

markets

For

the

excess

time have been

their

borrowing

banks.

reserve

re¬

whole,

a

some

than

have

moves.

as

This

has

at
in¬

easier tone in the money
and

has

been

reflected

in lowering interest rates on

borrowing and lowering yields on
outstanding issues. The mortgage
market is active and seeking bor¬

has

probably declined about 10%
since last July, or
by a proportion

those
thosd

of

equal

ing,

to

the

full

decline

1948-1949 reaction.
cline

does

nosis

that

not

the

While this de¬

change

the

in

the

current

diag¬

reaction

reflects

primarily an unbalanced
inventory situation, it raises the
possibility that it may in itself
set

forces

spread

in

more

motion

widely

that

It is impossible to evaluate
this possibility at the present time.
It is important to remember that

omy.

the

reaction

tionally mild.

in

1949

was

excep¬

Activity in durable

goods lines recovered quickly un¬
der the stimulus of
pent-up de¬
mands

following the war. In my
judgment, the quicker

personal

•Remarks

of

Joint Committee

Washington,

Dr.

Riefler

before

the

the Economic Report,
D. C., Feb. 16, 1954.
on




can

for

well

known

now

less

borrovy
than

at

At

the

time

on

the average

any

time

since

these actions

to

ment

of

the

a

funds

at

reasoned

general

judg¬

nature

of

coming economic developments.
In
assessing the role of monetary
policy in relation to economic
fluctuations in

a free
economy, it
important to keep in mind two
facts, first, that monetary policy,
however appropriately conceived

executed,

York

State

historic

a

authorized

when it

banks to invest in

Legisla¬

step

in

mutual

for

1952

nomic

stocks

the

first

in

their

given.

conditions, this policy has

proved amply justified.

savings

common

The grant of authority to invest
in

terms

more

to

from

vestment

In

an

tent

because

that

we

was

t h

action
taken

by
Legisla¬

e

ture

for

a

granted

are

with the utmost

care

spection,

cannot

guarantee

able

shall

widespread

assets,

this

and

up

the

purchas¬

form

should

to

of

liquid

help

to

speed

i

accelerate

investment,

particularly long-term investment.
The fact that state and

expenditures
tion

expenditures

for

1954

spite
of

are

the

of

municipal

also

and

construc¬

projected

now

currently
current

production

in

is

in

firm

contraction

part

direct

a

to the readier availabil¬

response

ity of funds in the capital markets.

J. Wilbur

Lewis

take

to

advantage

of

stocks

give

an

yield of
This yield advan¬
average

5% today.
tage is particularly
savings banks that

over

income

eral

income
is

tax,

received

entitled

important to
pay

since

by

to

the

Fed¬

dividend

dividend

income

tax

net

of

subject
7.8% for

to

a

such

joint group of Con¬

Chairman, The Illinois State Toll
Highway Commission, announced

of

tion, adopted Friday, February 19,

Halsey,

Stuart

man¬

&
a

Co.
pro¬

ready for sale. It is expected

keting

of

securities

complished through

banking

group

to

will

an

be

are

mar¬

be

ac¬

investment
formed

by

Glore, Forgan & Co. and Halsey,
Stuart & Co. Inc.

as

Revenue

this

dend

proposal,

income

Adoption

which is

sound

entirely tax free to

corporations,
income

and

therefore

like

from

outlets

funds

because

sents

for

the

savings

stock

repre¬

ownership,

whereas mort¬
bonds constitute in¬

and

gages

struments of debt.
bond

holder

The mortgagee

is

creditor,

a

and

en¬

principal when they

due.

come

The

be¬

stock¬

common

holder, by contrast, is entitled
only to receive dividends out of
the

profits
when

of

the

enterprise,

if

declared by the board
of directors.
Common stockhold¬
thus do not possess the senior

contractual
a

fixed

position, and right to
of return, that the

rate

titled to benefit from all the prof¬
its of the enterprise, after pay¬
ment

of

interest and*
stock prices

expenses,

dividends,

preferred
will

fundamental

rise
sharply in periods of
prosperity
when
earnings
are
large. By the same token, how¬
ever,
they can decline just as
sharply when a business recession,
or
unfavorable developments af¬
fecting a particular company, pro¬
duce a decline in profits and divi¬

and

dends.

tax-exempt obliga¬
savings banks which pay

the Federal

income

tax.

Secondly, with the great indus¬
growth
of
America
there

trial

have emerged many strong corpo¬
rations
whose
shares possess
investment merit,
give savings banks an oppor¬
tunity to provide needed equity
capital to industry.
As

a

of

means

.vestment

in

Legislature

implementing in-,

common

included

stocks,
in

the

the

law

authorizing investment in equi¬
ties, the authority to invest in
of

owned

a

mutual

fund

to

exclusively by mutual

ings banks in

McGee to Address

Code.

equitable, would make divi¬

tions for

resolu¬

and

staple

bank

high-

constitute

mortgagee and bond holder have.
Moreover, because common
stockholders, as owners, are en¬

part of the pending
comprehensive revision of the In¬

and

Inc., co-manager to submit

two

that

abolished,

Chicago Bankers

ager,

invest¬

ers

perts

CHICAGO, 111. —Evan Howell,

Glore, Forgan & Co.,

bonds

grade

or

stock in-

than

in the mortgages and

ment

and
a

common

risk

est

banks.

ternal

chose

greater

titled by contract to receive inter¬

credit.

is

only

incurred.; V

Investment in
volves

and Treasury tax ex¬
have proposed that the in¬
ter-corporate dividend tax be

Illinois Turnpike
Issue to Be Placed by

by

that

corporations

Hence, when the corporate income
tax rate is 52%,/as at
present,

Moreover,

Commission,

from

return

85%

an

gressional

the

of

To

en¬

the higher yields offered
by equi¬
ties.
Representative
common

i

that

benefiting

higher rate
equities offer.

of the risks

are

abled

in

while

the

banks

by

thereby

power

avail¬

every

to minimize the risks

minimize risk, the first es¬
sential is to understand the nature

dynamic growth, high income, and

ing

power

First, mu¬
tual savings

functioning markets,

of

means

this

and circum¬

employing

incurred

I

convinced

was
use

of

which

it

would

of

mention two.

times.

in¬

Legislature

the authority to invest
a limited ex- *

us

number,
on

than

other

diffusion

The

in common stocks to

*

bor¬

and

characterized

economy

freely

open

rates

at

policy.

de¬

no

traditional

our

cant

con¬

a

available

favorable

prevail

stocks involves

common

viation

long history.
This signifi¬

monetary

be

at the end of 1953

time

potential

this

state.

be

sav¬

Such

a

There

is no ceiling on common
prices when favorable con¬
ditions produce
larger earnings
and permit the payment of in¬
creasing dividends! But there is
no
floor
under
common
stock
stock

prices when unfavorable develop¬
ments

cause

reduction

a

shrinking profits and
omission

or

of

divi¬

dend payments.

fund

Municipal Women
Cushman McGee of R. W. Press-

- could
apply
tested
tech¬
niques for equity investing on be¬
half of all participating savings

banks.

The Institutional Investors

How

I. I.

The

Minimizes Risk

M. F.

portfolio policy of Institu¬

tional Investors Mutual Fund has
been

prich & Co., will be guest speaker

Mutual Fund, Inc. was set up un¬
der this legislative
authority to

at

provide

itors the benefits of investment in

a

meeting

Bondwomen's
at

the

p.m.

the

meeting
Housing
are

Municipal

the
of

New

Bank

Broad

York

&

Trust

Street,

New

City, Thursday, February 25

5:30

dress

The

Club

Chemical

Company, 30

at

of

of

in

Mr.

McGee will ad¬

in

group,

the

year,

New

its
on

York."

a

medium through which

mutual

state

savings banks of the
could join together to solve

arise in equity
investment, in a way that is par¬
ticularly designed to meet the ob¬
jectives and the needs of savings

"Public
Guests

R. J. Southwell is

a

securities business from offices at
50 Broad

Street, New York City.

Investment

Mutual

savings banks have al¬
been among the most con¬

servative

engaging in

to

of

America's
We have

financial

consistently

placed safety first among our in¬
vestment objectives. Through the
years,
and under changing eco¬

their

depos¬

stocks, while minimizing

common

the risks incurred.

First, the whole field of equity
is constantly combed,

investment
to

select

from

issues

eligible

a

list

of

exacting standards of savings

common

adviser of I. I.

address

by Mr. Lewis before the
Savings
Banks
Officers
Forum, Group
Four, New York City, Jan. 19, 1954.

Trust

Banks
mended

stocks

lected

a

by

that

meet

The investment

M. F., the

Savings

Company,

recom¬

master list of issues se¬

its staff of

trained se¬

curity analysts with long experi¬
ence
in
common
stock
analysis
from the institutional standpoint.
This
upon

*An

savings

assist

for

secure

bank investment.

Risks of Equity

institutions.

Opens

to

the

banks.

ways

R. J. Southwell

designed

banks

the problems that

fourth

invited.

is

and

New

took

situation where

a

will

interest

likely

York

by the Federal Reserve,
particularly those in the summer
and early
autumn, they were based
on

The
ture

antici¬

during

credit-worthy

rowers

were

initiated

necessarily

in

hand,

far

go

traction to create

loanable

stand¬

a

1952.

will

over the econ¬

less

find

ready market at
favorable rates. In spite of a very
large increase in their needs for
funds, states and municipalities
can

other

can

Corporate borrowers, both
of the highest quality and

now

or

during the upswing

inventories

the

policy

rowers.

Production

little

was

shares

Board

of

by the

Fund

new

the fact that the Federal Reserve
Index

that

not be

may

posal for its bonds when they

markets

these

member banks

larger

their

,

financial

con¬

pation of price advances.

ease

-toward

funds

of

for

time

present

there

incentive

acquire

maintain

to

December

accentuate

that

and

of

the

sequent months, the Federal Open

and

the

of their purchase.
Reveals Fund earned 5.19% on book
value of its securities in second half of 1953.
Resources of
fund now exceed $6 million. List of common stocks held

upswing of the
reasons

ease

ing but because of the sudden ap¬
pearance of more tension in the

increased

economy this year. The out¬
for the crucial construction

weeks.

has

in

Recent news, of course, has not
been

than

that time

up remarkably well in the face of
the decline in employment. That

a

of

and credit policies. In
case,
the indicated policies
initiated
early, earlier in

the

Winfield W. Riefler

largely

in the nature of

is

absence

the

reasons

constructive outcome

a

fact

far

justment/'

the

this

last

thus

or more

monetary

contrac¬

since

in 1949,

as

con¬

mainly

proves

troublesome, it would be difficult

diagnosis

there

of the

course

traction, whether it

than modify

been

ity

On

Federal Reserve Indicated Policies

in¬

One of the
at

organization minimizes risks in investments, and permits exer¬
cise of expert judgment in selection of securities and
timing

the

characterized by price stabil¬

was

to

tends

June

as

the Council of Economic Advisers

firm

has

however,

clear,

states, that the economic situation
will
demand
careful
watching

evidence

tion

is

and

diminish

too serious is that the recent boom

dis¬

not

are

to

inventory imbalances

the

On. the whole,

"the

gen¬

expectations

confidence
It

ad¬

are

provided

better,

consumer

business
turbed.

ex-

nomic activity.

the

eral

inventories

the

reac¬

in

this

unbalanced

justed

no

of

current

tion

have

presentation of
Report, additional

Economic

evidence has
nature and

that

weeks

the

since

and should, of

can

savings banks as a
Points out how this

of investing in equity securities.

means

inventory

overaccumulate

to

fidence
In

passed

It

operate

ventories

situation, which have produced lower interest

Sees ready

distress

for

Reserve

as

Federal

Mr. Lewis discusses the functions of the Institutional Investors
Mutual Fund, set up by New York State

unavailability of credit

cause

a

incentive

actions to meet
rates.

much

or as

Recounts

reaction.

the ad¬

once

justment is under way, other than

sharper than revealed in the Economic Report,

date has been

President, Institutional Investors Mutual Fund, Inc.
President, Union Dime Savings Bank, New York

Monetary policy can do little to
slow down an adjustment of un¬

master

tee and
'

I

list

was

then

passed

Executive Commit¬
by. the Board of Directors

by

our

Continued

on page

32

Volume 179

Number 5302

.

.

The Commercial and Financial Chronicle

.

(883)

\

$7.35 billibn in 1953 to $71/2

Prospects ofPlant and
Pqaipment Investment

Here is
izes

the

table which

a

of

ment

in

and

business
1954

Director, Department of Economics,

BUSINESS

indica¬

capital

which I

invest¬

have

CAPITAL

EXPENDITURES

iPlanned

1953

Manufact'g

1

1954

and mining $13.00

Electric and gas utilities

expend tares for plant and equipment in the commercial

Holds there will be slowing

quite small.

2.70

Commercial & misc. (est.)

2.45
7.50

growth of
and that

industrial capacily in the

$27.55

in the

up

tLatest

immediately ahead,

years

ment
*

capital outlays will be made, mainly for moderniza¬

of

quarterly

Commerce

tion purposes.
If

I

that

understand

about

it

will

be

before

month

rather complete

the

plans

results of the comprehensive sur¬

valid.

another

evidence that the
last fall are still

reported
For

example,

the

the

table

the situation—and I
it

pretty close to it—busi¬
whole is planning to in¬
only about 5% less in new
plant and equipment in 1954 than

survey

ness

vest

during

the entire year

indicates virtually the same level

it invested

1954, which' is

of

breaking
indicates,

ment

expenditures

conducted

our

jointly by the

the automobile

Commerce

in

Department

confirmed

the

Se¬

curities

and

and

the

time,

ments

merce

Keezer

M.

Dexter

the

of plans for capi¬

survey

first

of this

quarter

these

results

year.

the

other

and

reports I have mentioned it is

pos¬

sible, I believe, to patch together
a tolerably good picture of where
business plans for the purchase of
new
industrial plant and equip¬
ment

in

1954

I

stand.

now

find

that my

assignment also calls for
plans for capital in¬
vestment
by commercial enter¬
prises. I am less well equipped to
deal with this aspect of the sub¬

me

to

ject

cover

McGraw-Hill
do not cover commercial

because

surveys

our

establishments,
merce-SEC
As

the

do

as

Com-

stand

business

right

as

now,

is

whole

a

planning to spend more for new
plant and equipment in the first
.quarter of 1954 than in any first
quarter on record. (In American

.

business

as

whole

a

manufacturing,

utilities

billion—

ture—about $28

been

never

since

a

two

but

Commerce

the

was ex¬

Department

and the SEC started to collect the

figures—in 1946.
business

American

billion in 1953.

of

the

is

now

year

plan¬

as

for

breakdown

only

1954

of

the

between

plans

various

branches of manufacturing which
is now available comes from the

made last fall.
Here are the detailed figures for
manufacturing.

survey

which

we

capital

dustries

is

less

last

change

from

mining in¬

indicated

1953.

our

little

electric

For

utilities, "Electrical World's" esti¬
mate of last October has

validated

by

been

now

covering

survey

a

96% of the private electric power

industry,
This

in

surVey,

in

made

shqws

1954

1953,

1953.

is

made

same

American

still

dicates

on

months

several

a

survey

It in¬

ago.

decline in
expenditures. On this basis,
slight

a

as

Associa¬

Gas

based

level

available

The latest data

the

from

December,

expenditures

planned at about the
in

capacity.

of

terms

NEW

FOR

PLANT

EQUIPMENT

(Millions

Dollars!

of

Increase
or

1954

Decrease

$1,410

$1,070

—24%

959

Steel

Plans

1953

Industry

1,105

+ 15

—10

Automobiles

898

804

Elec. machinery--

438

484

210

191

865

865

2,778

2,709

1,650

1,413
259'

2,920

2,549

11,449

.

_

—

Chemicals
Textiles
Other manufact'g

Total

-Includes

non-ferrous

+

-

metals

merce;

investment

in

plans

expansion

and

is

what is actually

once,

ly

is

no
promise of
going to happen.

personal

my

surveys

more

similar

fifteen years ago.

or

pression

is

did

not

great increase in long-range plan¬

ning

of

investment

capital

business.

I

planning

what

current

in

checking

increases

except 1950 actual

hence

the

they

Korean

rush

would

of capital

actual

81%

do

1950

This

81%

a

new

65%

a

We

have found no evidence of exten¬

do

not

experience,

forward

some
was

year

an

earlier.

—

most

small

however,

that

companies.

Continued

we

Illinois Central

which includes railroads,
trucking—will spend

airlines and
about

10%

less,

Equipment Trust, Series 38

$2.45 billion,

or

in 1954.
As

have

I

expendi¬

indicated,

cellaneous"

category

based

on

•

chiefly
We

prehensive

i

•

data collected by

have

made

no

To

$200,000 semi-annually September 1, 1954 to

mature

com¬

March 1, 1969, inclusive

this group.

of

survey

(Philadelphia Plan)

•

be

must

Equipment Trust Certificates

2Vi%

tures in the "commercial and mis¬

However, the McGraw-Hill maga¬

ning to continue the purchase of

zine "Business Week"

capital equipment at a very high

To be

guaranteed unconditionally as to payment of principal

and dividends by

Illinois Central Railroad Company

checking in November that eight

will de¬

but a rate which
cline moderately as the

rate,

vances.

ad¬

year

If capital investment were

carried out for the balance of the

cities

had

three

than

one

construction, compared with
cities

having that much of¬

at present planned the
expenditure would be from $1 bil¬

fice construction underway a year

lion

clude construction of loft space or

as

year

to

all-time

billion less than the
record-breaking total of

$1.5

$27.8 billion attained in 1953. That
would be higher than in 1952 or
any

other

discuss
that

some

present

panded

or

except 1953.1 shall
of the possibilities
plans

will

contracted

briefly how

plaining
was

year

be

ex¬

after ex¬
this figure

arrived at.

before.

These

both of which

for

the

do not in¬

figures

owner-occupied
on

office

projects,

as

last fall and

as

consider¬

late

Sept. 1964

Mar. 1955

1.50

Mar. I960

2.40

Mar. 1965

2.65

Sept. 1955

1.60

Sept. I960

2.45

Sept. 1965

2.65

Mar. 1956

1.75

Mar. 1961

2.50

Mar. 1966

2.675

Sept. 1956

1.85

Sept. 1961

2.50

Sept. 1966

2.675

1.95

Mar. 1962

2.55

Mar. 1967

2.70

Sept. 1967

2.70

Mar. 1957

.

Sept. 1957

2.05

Sept. 1962

2.55,

2.15

Mar. 1963

2.60

Mar. 1968

2.725

2.60

Sept. 1968

2.725

2.625

Mar. 1969

reported

by the Mc¬
"Engineering

News-Record" have been

ably

rechecked since, indicates
manufacturing 'companies

Considering
other

data

ment and

above

a

running
year

ago

Sept. 1958

2.2 5

Sept. 1963'

Mar. 1959

2.30

Mar. 1964

pears

they spent in 1953.

mercial

In

some

sectors of
*A

Joint

of

the most

important

manufacturing,

statement

Committee

by
on

Dr.
the

we

have

Keezer to
Economic

the

by

substantial

The

'

is

taken

the

in

this

ap¬

com¬

planned

cautious

field,

'

I

HALSEY, STUART & CO. Inc.
R. W. PRESSPRICH

L. F. ROTHSCHILD & CO.

& CO.

increase

for

1954. But since I have little direct

knowledge

2.725

Certificates are subject to authorization by the Interstate Commerce Commission.
Offering Circular may be obtained in any state in which this announcement is circulatedfrom only
of the undersigned and other dealers as may lawfully offer these securities it} suck state.

govern¬

expenditures in the
category

/

Issuance and sale of these

and

facts,

I

BAXTER, WILLIAMS & CO.
IRA HAUPT & CO.

view that the

increase will be quite small—from

February 19, 1954

FREEMAN & COMPANY

HAYDEN, MILLER & CO.

JULIEN COLLINS &

have

Re¬

port, Washington, D. C., Feb. 8, 1954.




in total

these

collected

a

.

such

private agencies, it

that

less for
plant and equipment in 1954 than

plan to spend about 8%

2.625%

2.35%

■

survey

1

be added)

Mar. 1958

in recent months.

McGraw-Hill

made

that

to

Sept. 1959

■

Our

(Accrued interest

1.25%

awards

Contract

Graw-Hill magazine

than 20%

/

Sept. 1954

also reported

were

increase.

buildings,

large commercial construction

more

MATURITIES AND YIELDS

million

feet of rental office space

square

under

more

did find by

COMPANY

our

from.
com¬

surveys
com¬

However,

conclude from this

$6,000,000

have

The

panies which, I am sure, plan their
expenditures further ahead than

But

suggests that this

planning.

increase

part, large

20% higher than the survey
at the beginning of the year indi¬
cated they would be.

We

their, capital invest¬
ahead and

investment which panies cooperating in
expenditures
that are, for the most

year

of de¬

plan

ment at least two years

In

be.

started

war

panies

total

.we

by
such

the stability
forecasting value
of the plans involved. For several
years we have asked the compan¬
ies which cooperate in our surveys
how far ahead they
plan their
capital expenditures.
Last year
the
survey
showed that nearly

and

1954

October.

that

sure

am

two-thirds of the respondent com¬

.transporta¬

survey

companies

This im¬

basejd largely on the

billion in 1954.
We

impression

have substantial¬
forecasting value than a
survey
would have had

our

utility expenditures would be $4.3

tion

re¬

dicated

pri¬

programs.

are

couple of years, of which it ap¬
pears 1953 will prove to be one,
actual
expenditures have
been
within 1% of what the survey in¬

.

manufacturers'

marily to the completion
fense

tested by

we

potential capital in¬

reports

vestment

equipment has come within
6% of the plans indicated by the
McGtaw-Hill survey.
And in a

Com¬

is related

cancel

size the proposition that our sur¬

and

McGraw-Hill survey.

1954,

decline

surveys are

experience

more

vey

business investment in new plant

8

lot

ten

2

some¬

indicated

serving judgment on their fore¬
casting value.
In the meantime,
we claim nothing for them in that
line.
Instead we heavily empha¬

plans for

In every year

has

mark

they have thus far.

as

Until the
a

happen?" The correct answer, as
I see it, is that we do not yet
know. On the record, during the
period since 1948 that we have
been making these surveys they
look like quite a valuable device
for forecasting capital investment
by business.
i *'

are

well

as

It

made

The

out

that

(refin¬

of

Department

at

the

in individual industries to

investment
in new plant and equipment as a
forecast
of
what
will
actually

reliable

business

the

1953,

arises

performance of

industries

missed

by the survey of plans consider¬
ably further than the investment
performance for industry as a.
whole.
We haven't had enough
experience to know whether we
can confidently expect the errors

these surveys

"How
of

apparel.

Source:

individual
times

to

question

interlude,,

depression.

or

The investment

high level of capital invest¬
in 1954.
Large companies

The

ing and fabricating), building materi¬
als, containers, paper, rubber, furniture
and

recession

particularly are planning to di¬
versify their manufacturing facil¬
ities,, either by bringing out new
items, or by crossing over into
othpr industrial fields with at¬
tractive growth prospects.

0

—

a

the

The survey of plans have never

produce

to

which

brief

been through the test of a severe?

level.

appears

ment

9

—

1953

tain

10

—

this

during
one

demand for capital goods.

new prod¬
be the principal
driving force behind the plans of
manufacturing companies to main¬

—13

manufact'g 12,423

—

equip.

^expenditures

with

been boom years and years when,
there has been specially heavy

hun¬

some

forecasting in¬

We recognize that:

years

have,

But the investment planned

ucts

—12

Food

_

of

total

their

of

Ability

—14

295

Machinery

Petroleum

complete, but

fall

survey

AND

Transport,

1

on

EXPENDITURES

Est.

reason¬

a

,

information

Our

others.

balance

the

For

The

year

survey

expenditures in manufacturing of
$11.4 billion, as opposed to $12.4

group

last

in,the all-time record1953. As the table
most of the decline is
concentrated in manufacturing.

last

our

able one, we arrive at 1954

been able to do

there has
higher first quarter

1953,

of

the

in

slightly

quarters

con¬

large

the

decline

and

of expendi¬

planned annual rate

taking

So

The

establishments.)

commercial

ceeded

include

I

mining, trans¬

public

portation,

a

the

of

change since

no

or

tion

surveys.

matters

American

to

as a

the

in

figure of 8%

outlays by American business

in

With

number

survey.

SEC

-

able

announce¬

press

personal contract

or

little

the

quarterly

manu¬

been

have

an¬

oil, chemical and
machinery industries. They report

regular Com¬

tal

We

been

public

leading

firms

the

of

of

shown

as

since

the

siderable

have

available
results

by

recheck, through

mean¬

we

have

did

as

plans of

The

industry,

survey,

facturers.

available.

are

our

1954

survey.

nouncements

Exchange
Commission,
In

earlier

for

the

-

The

this

•

the

portrays

comes

published
in
January
by
the
American Iron and Steel Institute

of business plans for invest¬

vey

Of

sure-fire

a

surveys have been conducted

minority of companies
bulked large enough to keep the
totsll expenditure planned close to

confident

am

longexpan¬

dreds of manufacturing companies
whose 1954 investment plans we

by

surveys.

correctly

with
and

provide the main
support
for
capital
spending.
Smaller
companies continue to
cut back on investment in plant
and
equipment, as they did in

year.

$26.50

SEC.

and

companies,

programs,

have

strument.

.

Depart¬

survey,

Association

Gas

sion

level

McGraw-Hill, "Electrical World'-' an(l

American

of

surveyed last fall, only 40% were
planning to maintain or raise the

4.30

7.35

.'

Transportation

$12.25

4.50

category is planned for 1954, but the actual increase in outlays
will be

anticipation

modernization

range

1953.

tEstimated

total

men¬

(Billions of Dollars)

Basing his views on data collected by government and private
agencies, Dr. Keezer says it appears a substantial increase in

in

cutbacks

Large

summar¬

other

tioned:

McGraw-Ilill Publishing Company, Inc.

sive

business recession.

plans

tions

By DEXTER M. KEEZER*
Vice-President and

bil¬

lion Jthis, year.

7

WM.

E.1

GREGORY & SON
INCORPORATED

POLLOCK & CO., INC.

McMASTER HUTCHINSON & CO.

on

page

24

8

The Commercial and Financial Chronicle

(884)

Electrochemical Company—Annual report, including
10-year summary—Secretary, Hooker Electrochemical Com¬

Hooker

Long

Justin Jacobs Joins

31 Forty-seventh Street, Niagara Falls, N. Y.

pany,

Dealer-Broker Investment

Peter McDermott & Go.

Company—Analysis—H. Hentz & Co., 60
Also available is a review

Lumber

Bell

Beaver

Street, New York 4, N. Y.

Justin Jacobs has become

of the Oil Industry.

Recommendations & Literature

Pacific—Discussion—Vilas & Hickey, 49 Wall Street,
5, N. Y.
Also available is an analysis of Pitts¬
burgh & West Virginia Railway.

New

Accident

and

Analyzer—Comparative tabulation

31—Geyer & Co., Incorporated, 63
5, N. Y.

as

of December

Jacobs

Wall Street, New York

J

Co.,

265. Montgomery

Street,

San

Motion
ular

Picture

Exhibition

emphasis

N. Y.

Riverside

distributor of Cinerama)—W. E. Hutton & Co., 14 Wall
Street, New York 5, N. Y.
York

analysis

City

of

Bank

17

Stocks

Year-end

—

bank

stocks—Laird,
Broadway, New York 5, N. Y.

Ohio

Law

Bissell

&

Meeds,

120

'

Co., Union Commerce Building, Cleveland 14, Ohio.

and

National

market

performance

Quotation

Bureau,

Security
Analysts; Ac-

Memorandum

—

Carbide

Carbon

&

Public

Accountants.

annual

Guniff to Be

;

Partner in Brinton

Street, New York 17, N. Y.
Merchants

United

Manufacturers,

&

McDermott & Co., 44 Wall

Inc.—Bulletin—Peter

Melvin

P.

Street, New York 5, N. Y.

M.

Cuniff,

member

partnership
Wall

York 4, New York.

in

Brinton

Street,

New

members of the

Pulp Industry in Japan—Analysis in current issue of Nomura's

&

New

New. York

in

6, N. Y.

United

States Investors'

Stake in

Canada—An

analysis of the

Place,

New

York

New York.
*

*

*

ing all those planning to attend the 30th Annual Mid-Winter Din¬

*

at the

Benjamin Franklin Hotel, Feb. 26, that there will be a
reception for out-of-town guests at 12 noon at the
Hotel Warwick preceding the dinner.

memorandum

a

on

luncheon

May

Byron Jackson.

cial

Parrish & Co., 1421 Chestnut

4-

Review

Avenue, East,
Ro.yal Bank Building, Toronto, Canada.

California School District Bonds
Russ

Analysis
Building, San Francisco 4, Calif. ■ •
—

James

—

Winnipeg,

Feb. 26, 1954

of

(Philadelphia, Pa. )

Investment Traders

Association

dinner at the Ben Franklin Hotel
will

also

be

J2 to 12:30 the

from

the Warwick

reception

a

day at

same

Hotel, with luncheon

Campbell-Taggart Associated Bakeries, Inc.—Bulletin—Sand¬
ers & Newsom, 1309 Main
Street, Dallas, 1, Tex.

promptly at 12:30.

Canadian Delhi Petroleum

Apr.

Inc.,

pany,

Canada.

607

Also

St.

Limited—Analysis—Kippen & Com¬

James

available

Street,

is

an

West, Montreal, Que.,
analysis of Trans-Canada

Hess, First National
available is

Central

a

Bank

memorandum

Indiana

Gas

—

29-30, 1954
Louis

Group

(St. Louis, Mo.)

Municipal

annual

—

Fridley &
Also

Trans-Canada Pipe Lines Ltd.

Company—Analysis—New York Hanse-

Dealers

outing.

atic

Corporation, 120 Broadway, New York 5, N. Y.
Cluett, Peabody &
Co.—Memorandum—Hemphill, Noyes &
Co., 15 Broad Street, New York 5, N. Y.
Also available is
a

memorandum

Crown

Cork

Broad

Family

&

—

Memorandum

Herzfeld & Stern, 30

Street, New York 4, N. Y.
Finance

Co.—Memorandum—Hirsch

&

Co.,

25

Broad

Street, New York 4, N. Y.
Firestone Tire &
40

dinner

Rubber Co.—Memorandum—Shaskan
& Co.,
Exchange Place, New York 5, N. Y.

Presently Active

at

the

(Dallas, Tex.)

Investment Bank¬
Association 19th Annual Meet¬

May 12-14, 1954 (Boston, Mass.)
Board of

tion

of

Governors of Associa¬

Stock

Exchange

Firms

meeting.

Member

N.A.S.D.

■i

Municipal

Bond

Club

of

in

Club, Rye, N. Y.

Co.;

Broker and Dealer

Mines

Primary Markets

N.

Y.

Security Dealers

Co.

Association

Trinity Place, New York 6, N. Y.




without
NY 1376

the

prich

Inc.;

the

by

estimated

to

switching lo¬

the

with

F. Rothschild &
Williams & Co.;
Co.; Gregory & Son,

Co.;

&

L.

Ira
&

&

Haupt
Co.;

&

Co.: Hayden,
Pollock &

Wm. E.

Co.,

of

Julien

Inc.;

Collins
&

&

Co.;

Co.

(Minneapolis

Wire Between

Stock

Exchange

N. Y.

Firms

meeting.
3, 1954

(Hollywood

A

Wright &
Hanseatic Corp.

direct

wire

telephone

Fla.)

at

Hollywood

Beach

Hotel.

has

been installed between New York
Hanseatic Corporationrl20

Convention

Stuart

Baxter,

McMaster Hutchinson

tion

Com¬

R. W. Press-

Hotel Claridge.

1954

author¬

Halsey,

are:

ciation Annual Convention at the

23-251

the certif¬

of

to

Interstate

offering

Miller

Security Traders Asso¬

William M. Allen Opens
(Special

LA

to

The

Financial

Broad¬

New York City, and Arthur
Wright & Co., Inc., 225 South

way,

L.

15th

Street, Philadelphia. Pa.

JOLLA,

Allen

is

Calif.—Willis M.
engaging in a securities

pect Street in partnership with
Cecil G. Gray, William R. Mac¬
kenzie, Alice A. Gunsaulus, and
Elizabeth B. Beacock.

ST.

The

LOUIS,

Financial

61

obligation

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

BOwling

Green

Head Office

9-0187

Tokyo

(Special

to

The

Financial

Chronicle)

Mich.—Walter J.
Posey has become connected with
McDonald-Moore & Co., Penob¬
DETROIT,

scot

troit

Building, members of the De¬
Midwest

and

Joins

Chronicle)

Mo.—Carlton

H.

is

rick &

Stock

Ex¬

changes.

Josephthal Staff

(Special to

With Barrett Herrick
to

Joins McDonald-Moore

Chronicle)

The

Financial

Chronicle)

BOSTON, Mass.—Robert L.
Polleys has joined the staff of
Josephthal
& Co.
19
Congress

Co., Inc., 418 Locust Street.

now

with

Barrett

Her¬

on

Japanese Stocks and Bonds

74

of

Freeman

(Special

Material and Consultation

Members:

road

subject

Associated

New

York 21st annual outing at West¬
chester Country Club and Beach

Green

2400

secured

Commission.

merce

business from offices at 1001 Pros¬

Polaroid Corp.

IIA 2-

yield

to

ing.

(Co., mx..

Troster, Singer &

equipment

is

icates

Investment Bankers Associatior

3Jomur;t Securities

Haile

be

to

comotives. Issuance

(New York City)

11, 1954

Nov. 28-Dec.

May 9-11, 1954

priced

2.725%, according

is

diesel-electric

at

<

ers
—

Convention

W aldorf-Astoria.

Texas Group

Texas Eastern Transmission
Corp.

on

Seal

annual

issue

Board of Governors of Associa¬

Security Traders Association of
York

to

maturity.

ization
June

Sept

May 7, 1954 (New York City)

New

and

$8,402,760: two (jiesel-electric
passenger
locomotives,
and
48

Minn.)

Memorandum

Building, Houston 2, Tex.
on

Annual

National

St.

1.25%

railroad

Sept. 22-26, 1954 (Atlantic City)

Pipe Lines, Ltd.
Canadian Delhi Petroleum Ltd.

Conven¬

Jasper Park Lodge.

Philadelphia annual midwinter
There

Kaiser & Co.,

—

Societies

Inc.

offered

the following new standard-gauge

9-12, 1954 (Canada)

of Canada

1

British Columbia Power
Corporation, Ltd.
Richardson & Sons, 173
Portage

certificates,

The

Finan¬

Investment Dealers' Association

,

—

of

Co.

19

cost

fune

Instruments, Inc.—Bulletin—Bregman, Cummings &
Co., 100 Broadway, New York 5, N. Y.

Analysis
Street, Philadelphia 2, Pa.

Analysts

to

!

Field

Investment

In

Bcckman

and

The

(Chicago, 111.)

Federation

&

Feb.

38, maturing semi-annually Sept.
1, 1954 to March 1, 1969, inclusive.

tion at the Palmer House.

EVENTS

Chemical Corp.

—

16-20, 1954

National

COMING

Refining Co.—Analysis—J. A. Hogle & Co., 507 West
Sixth Street, Los Angeles 14, Calif.
Also available are anal¬
yses of Federated Department Stores and International Min¬

Bond Stores, Inc.

Stuart
on

equipment trust certificates, series

from

Atlantic

erals &

and

Also available

& Co.

$6,000.000 Illinois Central RR. 2V2%

Memorandum—Auchincloss, Parker &

Redpath, 52 Wall Street, New York 5, N. Y.
is

Halsey,

OF PHILADELPHIA

associates

ner

—

ASSOCIATION

The Investment Traders Association of Philadelphia is remind¬

Allegheny Ludlum Steel Corp.—Memorandum—Walston &
Co.,
35 Wall Street, New York
5, N. Y.
Argus Cameras, Inc.

TRADERS

INVESTMENT

5,

Stock

partner

Halsey, Stuart Group
Offer Equip. Trust Gtfs.

'

trend of ownership of Canadian securities in the United
States in the postwar period by James R. Clarke—Dominion
Securities Corporation, 40

Exchange

Notes

NSTA

Francis I. du Pont

a

1

City,

York

Exchange. Mr. Cuniff is

Co., Ltd., 61 Broadway,
Also in the same issue are analyses of

Co.,

York

Investors Beacon—Nomura Securities

the Electric Wire and Cable Industry and
Spinning Industry
and discussions of Investment Trusts in Japanese
Economy
and current foreign trade.

of

the New York Stock Exchange, on
March
1
will
be
admitted
to

a

46

of

America; Association of
Customers' Brokers; and the New
York
State Society of Certified

Emanuel, Deetjen &

Corporation—1953

Justin Jacobs

countants
Club

13-year period—
Front Street, New

over

Inc.,

of

The Milwaukee

—

New

Society

tary, Union Carbide and Carbon Corporation, 30 East 42nd

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

yield

—

the

York

Memorandum

J.

member

a

of

Haupt & Co.,

report,
with an illustrated booklet describing the corporation's prod¬
ucts—alloys, carbons, gases, chemicals, and plastics—Secre¬

as

Over-the-Counter Index—Folder showing an up-to-date comparison between the listed industrial stocks used in the Dow-

—

and

Reilly &
Co., Inc.
He

Co., 120 Broadway, New York 5, N. Y.
Union

Applied to Municipal Bonds and Investment
Funds—Concise but comprehensive summary—Hayden, Mil¬

ler &

Corp.

Continental

Tri

Co.

F.

Company, 207 East Michigan Street, Milwaukee 2, Wis.

and

comparison

s,

&

Co., 10 Post Office Square, Boston 9, Mass.

Engineering Works

Smith

Broth-

Dreyfus

e r

Cement Company—Analysis—ask for report T-31—
&

Lerner

and

New

&

Broadway, New York 6, N. Y.

Ill

analysis with partic¬
Corporation (producer

Warner

Loewi

is

Public Service of New Hampshire—Review—Ira

Industry—An

Stanley

on

—

dated Publications, Inc.

Investment Opportunities in Japan—Circular—Yamaichi Secu¬
rities Co., Ltd., Ill Broadway, New York 7,

Lober

Analysis

—

as¬

with

sociated

Chain Belt Company and Hearst Consoli¬

of

analyses

are

mlM

1

Chemical Corp.

&

was*

formerly

B. S. Lichtenstein &

—

Co., 225 East Mason Street, Milwaukee 2, Wis.
Also avail¬
able in the current issue of "Business and Financial Digest"

Francisco 4,

Calif.

Instrument

Nuclear

Banking for Interstate Commerce—Joseph Manfrini
—(reprinted from the Analysts Journal) Joseph Manfrini,
&

Progress report

—

Company, 99 Wall Street, New York 5, N. Y.

Interstate

Walston

Corp.

Oil

Noranda

Stock

York

Exchange. Mr.

ville 3, Tenn.
Bank Stock

asso¬

McDermott

P.

Peter

of the New

Insurance

Company—Analysis—
Equitable Securities Corporation, 322 Union Street, Nash¬
Life

with

& Co., 44 Wall Street, New York
City, members

York

National

the following literatures

send interested parties

to

ciated

Missouri

firms mentioned will he pleased

understood that the

It is

Thursday, February 25, 1954

...

Street.

Kenower, MacArthur Adds

E. E. Henkle Adds

(Special

(Special" to The Financial Chronicle)

to

The

Financial

Chronicle)

Martin has been added to the staff

DETROIT, Mich.—Jack A. Pomeroy is now with Kenower, MacArthur
&
Co., Ford Building,

of E. E. Henkle Investment Com¬

members of the Detroit

LINCOLN,

pany,!

Neb.—Jefferson

D.

Federal Securities Building.

west

Stock

Exchanges.

and Mid¬

/

Volume 179

Number 5302

.

The Commercial and Financial Chronicle

..

(885)

servative

Taxation and Investment

ity

The

National

Former Chairman, Federal Reserve Bank of New York

taking

many fundamental differences in the nation's
when compared with 1929-1933, which can check

depression, Mr. Ruml discusses possible Federal

action in fiscal and monetary areas to support a

outlook

and

related

of taxation and
intended

are

the

on

and

to

economic

the

on

be

sub¬

investment

non-partisan

litical.

I want

to

as

be

jective
know

how

I

be;
that

you

of

my

in

know

now

in¬

my

is

tention, and if

let

be
o

Beardsley

Ruml

axio¬

This

believed

be used in

to

a

be

to suppose

reason

no

that these

will

inconsistent with

Government

business

and

have been working together since

or

free

Such

relate

be used

can

a

enterprise

doubts

will

of politics.

However, let us not make the
mistake of thinking that we can
dissociate government from busi¬
ness.

of depression is

as

transcend

cratic,

substance

f

and not

Party

known

manner

it

matters

on

be

powers

not

do

we

agree,

as

some

in

system.

have

may

primarily

a

demo¬

to

the

ex¬

tent, the degree and the timing
of appropriate action, and accord¬
ingly our uncertainties relate to
the

extent, the degree and the
timing of whatever recession we

experience.

may

Economic

The

Outlook

before, in the days of Benjamin
Franklin, of Alexander Hamilton
and Thomas Jefferson, of Grover

easier to appraise than the shorter

Cleveland

term

William

Howard

every

and
more
recently
other President and

other

Administration.

Taft;

not like the

of

people

given

a

We

may

the policies

or

government-business

relationship,
these

that

with
every

inevitable

is

it

but

should

relations

have

The

is

on

now

of

ment

the

have

ever

economic

the

over

people

are

Govern¬
life

of

greater than they
before

been

in

peace¬

the Re¬
publican Party does not want to
that

second,

and

time,

be known as the party

of depres¬

we

By

use

of the Fed¬

The greater powers

today

Government

eral

not

do

oppressive laws nor as
They
arise from technological change,
from the evolution of economic
arise from

a

result of deliberate policy.

institutions, and from the growth
of the idea of national responsibil¬

few

a

a

mendous increase in

can

tures

will

in the

life

of

people

the

come

First is the
size of th,e Federal budget, which
cut it how you will, will remain a
formidable
economic
influence.
Second is a much less rigid bank¬
from

many

sources.

and monetary system which
national government
from many private dictates of the

ing

has freed the

Third

past.
of

better

are

communication

that

systems
can

be

*An

address

ponsorship
nd

eb.

of

by

the

Mr.

and more peoRuml under the

National

Research Corporation,
15,

1954.

Securities

Seattle, Wash.,
'
,
'




increase

from

in

1960.

scribed

tion

increase

would be 54%.

increase in
consumption would be 35%.
The per capita increase ex¬
cluding food and housing would
capita

particularly

bank

potent

its "frown"?

as

servers

has

As

central

bank

the

for

good it

situation
there

which, barring
current

give

us

tural

pattern, it can be expected
do its part.
It has no
in monetary policy that
will decisively protect us against

only

to

panaceas

recession and

fiscal

policies,
We must

taxation.

that

mands
exist

of

or

the

that

what

So

that

markets

will

be created.

can

the

about

If

we

Federal

look at the

action

of

policies

in

possibilities of
fiscal

the

or,H

we can see

three.

(1) Central Bank Policy.
(2)

Works

Public

and

ex¬

Federal

what

worth,

are

be

than

good assist.

and

a

expected

but they
be mOre

to

Public works

public expenditure must meet
of practical usefulness and

efficiency.

The

frivolous

or

the sake of creating jobs and pur¬

chasing

power.

The result is that

careful

planning and already ac¬
cepted objectives, economy and
efficiency, will control. The time,

imagination going into
planning of public works is
the good, but as with cen¬

energy and
to

tral

System

rightfully

public

objectives in Federal spending for

all

Reserve

they

cannot

so

The

policies of the Federal Re¬
System are highly impor¬

bank

policy,

it

can

Continued

on

page

Identifying Statement

date

(Par Value 10 Cents Per Share)

Gulf Sulphur Corporation was incorporated under the laws of Delaware on August 1,
1951 for the principal purposes of exploring for, developing, producing and selling
sulphur. The Company through its subsidiary proposes to construct a

calendar

The Preferred

first factor

character

of

is the

the

bulk

of

Stock offered will represent

so

population.

fuse

that

will

it

was

three

factor

second

hour.

per man

has outstanding at the date hereof 1,925,000 shares of Common
share par value.

Stock
\

.

.

Copies of the Prospectus may be obtained from:

10%

be

Peter Morgan

years ago

is

Do not

& Co.
New York 5

31 Nassau Street

produc¬

Dlgby 9-3430

con¬

productivity

with produc¬
is constantly
rising as a result of technological
research, mechanization and im¬
provement in managerial
skill.
tion.

Productivity

Productivity

rises

even

at

when production is falling.

Peter Morgan &
31 Nassau

Please send

Co.

St., New York 5, N. Y.

of the Prospectus relating to

me a copy

Convertible Preferred and

times

Gulf Sulphur Corporation $.60 Non-Cumulative

Participating Stock.

Based

long-term trends, the increase

****"""'

!

(Please Print)

in productivity per man
hour is about IVzVo. More recent
per

Company has the
days notice at

The Company
ten cents per

in 1951.

tivity

financing by the Company and will be

the

larger than it
The

other

right to redeem all or any part of the Preferred Stock after 1956 upon 30
the price of $12.50 per share, subject to the prior conversion thereof.

size and

consuming force
is already in being. And by 1960,
the
working
force
will
have
grown

new

of such Class B Common Stock for each share of Preferred Stock. The

price level approximately

what it is today.

The

or

offered to the public at $10 per share by the Underwriter. Such Preferred Stock is con¬
vertible on or prior to 1960 into shares of Class B Common Stock at the rate of 2 shares

1960

year

plant

facilities for the production of sulphur by the Frasch process.

discussion, I take the

the

as

and the

Corporation

Preferred and Participating Stock

factors

year

trends

indicate

and I take 3%

a

higher

figure,

per year as a con-.

City

-

-

3tate

i

only do

much without subordinating its

$.60 Non-Cumulative Convertible

serious crisis in

a

ex¬

sug¬

gested devices for checking a re¬
cession.
They should be used for

the

penditures.
(3) Taxation.
The

public

will not tolerate waste

to support a high

area

and

works

penditure loom large in the

tests

the Federal Government?

Gulf Sulphur

United

the

several

unem¬

Public Works

Public

700,000 Shares

war and peace prospects,
the basis for analysis.

this

For

in

are

can

do, but when it comes to massive
changes in the economic and cul¬

New Issue

angle, the logic of the form deter¬
mines the consequences of the re¬
lationships.
In
looking ahead to the eco¬

am

been

shrewdly said,
"You can pull on a piece of string,
but you can't push it!"
We want a powerful and wise

one.

is not on offer to sell these securities. They are subject to the registration and prospectus
requirements of the Federal Securities Act. Information about the issuer, the securities, and the
circumstances of the offering is contained in the prospectus which must be given to the buyer.

specified.
It is not
feel the tri¬

Is
as

Many ob¬

doubt it and of these I

This

position

also

the "smile" of the central bank

thus de¬

competitive business
enterprise under a profit system
will find ways to meet the de¬

serve

be 50%.

central

depression tendencies?

Policy

to a considera-

us

Federal

assume

lars, would be $112 billions.
The
percentage
increase
per

the

can

unnecessary

outlook

in^ con- level of employment,

expenditures in 1951 dol¬

sumer

Fiscal

brings

of

monetary
dollar

The

necessary to see or to

on

used to reach more

to

to give the
triangle with only

back

nomic

to

new

is

rate

to 1960,

far

19th century.

have

indicated

the

consumption.

economic

perspective
say

the

the

expenditures

have

to

But

reverse

more

interest

a

den

in

will

$208 billion in 1951 to $320 billion

on

world over. The greater
not the result of sud¬
change; they find their roots

greater powers of the
Federal Government over the eco¬

The

in

take
place in order to maintain full
employment. Consumer expendi¬
consumers

few

the

ployment.

equipment, a little more on
housing and on State and local
government activities, the conclu¬
sion follows that by 1960 a tre¬

by

of

Federal

and

asked

a

few details

if

powers are

These

conform

level

little more on private plant

Looking ahead until 1960 we can
discuss population with some con¬
fidence.
The working force and

ity the

than

defense

that
of

be pow¬

can

boom, but re¬
would
suggest

a

"frowning" seems also
in controlling the avail¬
money and credit.

ability of

insurmountable, and that after
a

raising

necessary

ingenuity

few shocks and after

comprehen¬

year—that in 1960
going to spend a

on

ca-

can

enough,—a little bit of what
called

con¬

superficial

are

the

what it

the

of

position

as

our

years,

is

who

properties of
a

the

somewhat

are
one

States

will

sive study last
the country is

1951,

1960?

did the National Plan¬
a

all

is

changes in doctrine, both the eco¬
nomic and cultural patterns will

But if you

many ways.

more

in

Product

ning Association in

little

our

use

My

that
not

say,

the

checking
experience

cent

do it

American to
own feeling is

observations

fall of 1954.

or

extending

in time

nomic

it

are

assume—as

find ourselves in

may

summer

the

that

powers

from

years

of government in its own
best judgment to avoid any such
historic reputation.

and

sion,

National

important, and partly be¬
specific incident, favor¬
or unfavorable,
can have as

where

we

Federal

Gross

no

much influence

mount importance.

the

because

few

facts stand out which are of para¬

of

is

outlook

going to

we

to

do.

erful in

by

they

to just

less

cause

able

existed, that they do exist, and
that they will continue to exist.
In
the present situation,
two

powers

term

partly

—

are

limits

no

can

as

the

reason¬

rather just how much it
It seems generally agreed

or

thpt the central bank

"We have

say,

eco¬

as

is, there is

longer term, the factor of timing

the

First, that the

longer

not

of 1953.

a

How

The

the time of Queen Elizabeth I and

and

$455 billion. This comwith $330 billion in 1951
a
rate of $364 billion

There

more

helpful,
and if necessary decisive, in main¬
taining a high level of economic
activity and employment. There

any

case, you

more

Republican

want to

party

manner

but

be

hope

we

the
not

of

powers

surely

the government will

t s,

e n

will

compelling necessity
any and all ideo¬
logical rigidities. The powers of

will

some

increasing

do,

American business production and
salesmanship and all the best cooperation and use of the powers
of the Federal Government will
be required to make the economic
an<^ cultural change implicit in a
50% increase in per capita consumption. Even so, I believe that
this requirement, though large, is

with

for the last quarter

the

will

with

statem

every

are

that

and

1960

ity, hours worked per week—and
taking the date 1960 and the present price level, we come up with
a figure for gross national product

that

government

matic.

not agree

at

They

pacity of the

putting all these factors
together — population, productiv-

level of government, which means

the

know

"there

in

Now

and

That

to

skill

disturbed

done it before and we
again." "And besides,"

sume."

Product in

not

are

of

Important

bank

able doubt

that other competent

these figures.

these

pares

technical

more

should

I

students

maintenance

purpose.

central

can

I must say

Eco¬

used

this

very

l°w 4%.

for 1960 of

ob¬

as

for

has

a

the

stability. We can assume
that they will be used fully for

to keeP unemployment be-

sary

the

a

Committee

Gross National

is

skillfully
and
wisely used.

non-po¬

as

Development

pie every year; and fourth, there

Government and Business

follow

its Policy Statements.

hands.

remarks

hours

the

nomic

Looks for lower taxation, and concludes
Administration will use its full powers to avoid a depression.

My

1

be

to

me

to

nomic

large increase. And yet this increase would appear to be neces-

Planning Association in

39

which

high level of

employment. Says, as raising interest rate cannot effectively
check a boom, so, also, easy credit cannot prevent a depres¬
sion. Holds public works expenditure likewise of little help,
but contends lifting exemptions in individual income tax is
by far the most powerful anti-depression instrument in the Gov¬
ernment's

and

1969 seems to

the

working
week in

reasonable
projection for 1960. As for un¬
employment, I feel that 4% is
about as high a figure as would
be
tolerable—this
is
the figure

Pointing out the
serious

is

factor

average

40.3

were

Director, National Securities and Research Corporation

a

the

of

tant

An increase of 50% in per capita consumption outside of food
and housing
between
1951 and

and

1951

Hours worked per

week.
1951

basic

last

length

By BEARDSLEY RUML*

economy,

for productiv-

between

1960.

In the Business Outlook

jects

estimate

increase

9

36

/

10

The Commercial and Financial Chronicle

(886)

will

Snpply and Demand for
Investment Funds During 1954

The

mates dealing with

Table

the supply of
in-

all

vestment funds

1954. As in

in

the

>

the

with

activities,

a

small group

WKMiki'/ments

of

investment

'tWjgjtT

sets 0f

in vestment

and

whether

in¬
as-

for

or

of

the

private

.Companies__1_.

Insurance

Savings

Mutual

expected

billion

$0.4

to

in' real

invested

estate

Banks

..

i

.

them

'

.

their

Savings and Loan Associations—-—
Private Pension Funds 1.——
with insurance

funded

Not

Public

Funds

Includes

only

of the fund

Fire

those funds that may be invested at

other

in U.

regulations

tional

endowments,
in

billion

mortgages,

and

shares

time

in

investments
of

funds

investment

Includes

0,7

the discretion

Treasury

and

of

6.0

Funds.—
charitable

and

educa¬

to

York

atic

t|.oh,
Bfr

o a

$12.8

Mortgage Amortizations and Repayments-.State and Municipal Maturities and Repayments
1

Excludes

1.6

repayments to public funds1

Corporate Maturities and Repayments
commercial

Excludes

loan

x

$35.9
____.$18.2

!

Mortgages
four-families.

to

All Other Mortgages

2.8

multi-family

Farm,

and

included

borrowings

Securities

State and Municipal
Excludes

commercial,
but
excluding
financing.

corporate

in corporate

4.7

_.

Foreign

International

Includes

Total

6.9
0.6
Bank,

Demand

Canadian

for

Issues,

more

$33.2

TABLE II

"

^

of the net accumulation of funds by a specified
of institutional investors and the demand for their use as

SUPPLY OF FUNDS

of

the

H.

Parkes,

Jr.

ment

During the
in

years

he

war

the

U.

of

3.6
1.1

Public Funds

Fire

and

'

$12.5

Real

Estate

He

Investment

dian Issues.

Total

Indicated

Etc.
—

$6.2
3.1

0.9

0.4

IZIII-I_IIII_$10.6

Surplus of Institutional Investment
Funds—$1.9 Billion




Senate,"

all

They would
the

he

come

in droves

over

grew and then jump ship.

cooperated with

Ip the

Pakistanian

a

were

foreign vessels

on

case of

whom

years

the
ago

getting naturalized. 1

Denver
Donald

L.

to

in >Phila¬

is

a

member

Traders

Asso¬

Merger

Patterson

So
on

Hotin

is

now

Mutual
Fund
Associates,
Montgomery Street. He was

viously with Paul C.

was

be

received.

He

revelled

in

the

trial

new

the

Senate in

1941

under

cloud.

a

He

soliciting money from Federal employees.
by the Circuit Court of Appeals he* was

But the Senate debated for weeks

you

of

imagine,

can

a

now

no

man

stuff

on

admitting him to

he

after

what

he

has

that

he

considered

thrives,

than

people.

party.

with

been

through
the

and

charges

who had long been governor of

presiding

more

a great State and
the Chief Justice of the Supreme Court to

as

drawing

Why,

North Dakota is

—

on

room

one

stuff, polite conversation among

occasion

since

he

has

more

been

than 20

in

the

agents

investigating him.
one

So his fight in

of those

1952

one

in

was

party States, the Republican
the

primary.

After

bowling

over
his opposition in the
primary he1 thumbed his nose at the
Republicans and campaigned through the State with Truman.

444
pre¬

Rudolph

before

Senate, the Washington Government has had

With the

opening of Congress and the Republicans "in power,"
delegations came down to Washington with charges
seeking to prevent his being seated.
The Republican leaders
pondered long and hard. They needed him to insure their bare
majority in the Senate, which they have since lost, but the

&

North Dakota

Co.

-

Joins H. F. Swift Co.
(Special to The Financial Chronicle)

Democrats

FRANCISCO, Calif.—Hugh

Fraser

has

Henry

F.

become

Swift

Street.

He

And

associated

&

Co.,

was

pre¬

Goodwin.

Advisers Fund Opens
CORONA

been

DEL

Fund

MAR,

Calif.—

Distributors,

formed

with

have

admit

not

him

wanted

and

have

to

take

him

control

over

align himself

as

in
a

mid-term.

Republican

of their issues.
In the
meantime, this man has got a whole
political party and tp a considerable extent, the Eisenhower Ad¬
ministration in the position of having to know-tow to him.

Inc.

offices

at

Join Jamieson Staff

1415 Coast Highway to engage in
a securities business.
Officers are
William L. O'Bryon, President; E.
L. O'Bryon and John G.,

Vice-Presidents; F. H.
Secretary-Treasurer.

to

they had to let him have the Chairmanship of the Judiciary Com¬
mittee to which he was entitled under the
seniority rule. You
can
bet your boots that if they should
pick up three or four
additional seats next November,
they would by some hook or
crook1 remove him.
Frankly, this is what they should make one

490

viously with Walston, Hoffman &

has

a

to

came

out in North Dakota

FRANCISCO, Calif.

ever

convicted of

kind

the

against

married Jan. 30.

(Special to The Financial Chronicle)

A.

introduction of an immigration
receiving serious Committee consideration.

membership.

With Mutual Fund Assoc.
SAN

attention to the

no

was

Senator

been

acquitted.

re¬

the

were

same

campaign, Langer's opponents charged he had even
Communists into the country. Langer won by a larger

Granted

has

trading desk of.
Boettcher and Company, Denver,
Colo., after a three weeks' honey¬
moon at Sun
Valley. He and Betty
Taylor,
also
of
Boettcher
and

Company,

the

the

The

Advisers

Mortgages
Corporate Bonds, Debentures and Preferred Stocks—
State, Municipal and Public Authority Iss/ues
Foreign Loans, including International Bank, Cana¬

the

charges and turned them into building him up as a man whose
heart beat for the foreign underdog, as one who was
befriending
the downtrodden people of Europe and Asia.
In a state with
such a large immigrant stock as North Dakota his
pose had a
great appeal.
had

0.6

USES
•"

or

pay

brought

Germantown

0.7

Casualty Insurance Companies.—______"""

Total

,

in

to introduce bills without

was

majority than he had

the

educated

was

to

In

S.

Philadelphia, Mr.

California

1.6

Savings and Loan Associations,
Private Pension Funds

up
was

Department of

extended

ciation of Philadelphia.

with

$4.9

it

than'ya thousand aliens, the great bulk of whom

The

i

,

delphia schools.

W.

Billion

Life Insurance Companies
Mutual Savings Banks

was

getting them
getting Committee consideration of them, to stay
to grant citizenship.
He did this in the case of

even

Pakistanians

ay,

native

SAN

;.

thought they had him when he
They had dug up the fact, and

1952.

he had succeeded in

Co.

section of

The same exclusions apply as in Table I. Common Stock
purchases also are not included. Mortgage and security invest¬
ments expected to be acquired by investors other than those in
this specified group are eliminated from the various classifications
uses.

doing it is doubtful

while legislation is "pending

members of

as

stated.

of

of evil

bill unless it

Roland

Estimates

foes

in

country

Pakistanians.

Etc.

Funds

Indicated Surplus of Long-Term Investment Funds—$2.7 Billion

group

the

polite

Financing
Loans

char'ges

of

free

were

Senator's

deportation

purchases by public funds.

Corporate

he

re-election

passed or

Parkes

turned

DEMAND

One-

w

If

prior to joining Arthur L. Wright
Co., Inc., was associated with

$16.6

Supply of Funds

Residential

in

&

transactions

Total
Total

Bargeron

knows

the Senator had to do

2.2

——

Carlisle

Having

long time, although

a

in the newspapers, that in a period of three
he had sponsored immigration bills to permit more than a
/thousand aliens to remain in the country. Under the policy of the
Department of Justice of not moving against ."an alien illegally

York.

Parkes
Funds Requiring Reinvestment

one

has been active in the investment
securities business since 1924 and

A

$19-3

was

criticism,

any

Justice up until a couple of years ago
courtesy to members of the House who in¬
troduced immigration bills but the practice
got so raw on that
side of the Capitol that the House leaders called
upon the Depart¬

and

—

was

edi¬

widely published

Coast Guard.

and $2.0 billion of investments in corporate bonds
foreign securities.

It
the

and

years

120

d

three

Total

been

me,
I am convinced that this surprise was
The Senator has been subjected to charges worse than
made against the Chief Justice ever since he has been in

The

Hanse-

&

increases

Senator for

he

stuff.

for

Corpora-

served

consists of

charges.

fellow Senators

shock, to what he had done.

the

doubt

r

New

Bioren

It

had

if he would know how to campaign.

become

di¬

a

of

funds.

that New¬

has

also

in commercial banks, $1.2 billion of
securities, $0 8 billion of purchases

trust

deposits

tax-exempt

0.9

L_

issues.

individuals,

Jr.,

N.

by legal

to be required to be placed

S.

that

He figures it all goes with the game of politics, and
in which he has played the game it does. Like Former
Mayor Curley of Boston, the Senator seems to thrive on this sort

private

'Mr.

•

the

made

public life.

need

of

New

Securities.

Other Accumulations of Long-Term

$2.0

\

had

public the irrespon¬

Warren

surprise that there could be

any

installa¬

wire

;

"

Casualty Insurance Companies

and

Excludes $0.4 billion expected
or

••

in other thap U. S. Treasury Issues or spe¬

managers

designated State and local

cifically

'

—-i-----

—

to

genuine.

as

tion

11.4

—1^—

companies, t

j.

I

corpo¬

the

i'Z

nomination

Senator Langer's reaction to this
of

trading
department.

^3.(J

made

against

this that caused

rate

-tn

'

that

sent.

was

tors to gasp.

of

rect

.

Committee

when

weeks,

huff

a

who

much less

announces

Parkes,

Manager

yr

-----'

---

those

of

Street,
H.

associated

$5.0

,-~7 —

be

provide policy loans.

to

used

they

in

charges

15th

Billion

,

in the way

a n n 0 u

Excludes

and

further lowering in the level of

The firm

Life

investment

improvements,

public

SUPPLY

Accumulation of New Long-Term-Investment Funds

this

to

was

of

ton

noted.

to

Chairman

received, without making public the identities

with

pared with the demand for their use for
and public sources, with the exclusions

is

holding the nomination in Commit¬

PHILADELPHIA, Pa. —Arthur
L. Wright & Co., Inc., 225 South

investment

Warren

Earl

high office usually receives prompt and
or
less perfunctory consideration, the

sible

Arthur L. Wright Go.

repaid and requiring reinvestment, com¬
all purposes from private

including those

funds

of

Senator

Senator

Newton Parkes With

sources.

of long-term

it

several

for

more

institutions and the demand

supply

total

The

tee

known

I

TABLE

estimates

The

After

interest rates in 1954.

borrow a substantial amount of
new funds in
1954, 4he current
refunding, have been economic invironment and outlook
indicate that -its cash financing

eliminated.

appointment
States.

Langer of

Judiciary Committee, one of the
Committees
of
the
upper

and

Governor Warren's nomination

indicate little prospect of any in¬
crease and a distinct
possibility of

selected group of invest-

public

the

United

editors

our

Senator

powerful

chamber

consid¬

a

handled

of the

such

local

additional
funds

most

occur.

has

tinued

Girard L. Spcncor

of

raising

of the Senate

in which

intention of Treasury and Federal
Reserve System officials to plan
their programs to encourage con¬

Although it is anticipated that
the United States Treasury will

for

should

pressure

Dakota,

Chief Justice

be

be

portion of

generous

a

manner

seeking investment. When consid¬
ered together with the announced

mX for their employment from private

the*

of

rteasurT
the

a

ment

All opera-

net

North

They would, of

source.

large and

seemingly aghast at the

are

funds

erable surplus of long-term funds

Treasury

the

estimates

greatly

for

the figures show

years,

a

in

Senators by and

In contrast with the past several

of

total

specified investible

II

crease

problem.
tions

.♦

direct invest-

as

By CARLISLE BARGERON

mort¬

substantially al¬
tered if an important recession or
a resumption of undesirable infla¬

in real property and funds

Table

Ii

the

of

well

estimates

liberalization

demand

also

course,

urec* for Personal loans are ex"

cializinginthis
field

as

Washington
Ahead
of the News

payments and other

the

from this

long-term

other

and

funds

trust

as-

of

sistance

WMmmmmmsmsm

these

Such action could

tionary

reacquired

or

in

From

-

that
could
the conclu¬

alter

radical

a

increase

enterprise and public borrowers,
Social Security reserves, Treasury

past, they have
been compiled

new

as

activities..

residential housing

gages.

funds seeking investment and the
demand for their use by private

and the demand for long-term

down

the

insured

the

the

estimates

I

compete

terms by government agencies on

lowering of interest rates.

any
esti-

be

of

ing Treasury financing and public improvement programs there

of

reached

would

Spencer presents statements and tables bearing upon

are

seriously

sions

supply and demand of funds for investment during the current
year.
Holds figures show there is a considerable surplus of
funds seeking long-term investment, but in view of impend¬

herewith

to

development

most

Hutzler, New York City
Members, New York Stock Exchange

Presented

designed

possible with the require¬
private
industry and

of

State and local public

By GIRARD L. SPENCER

is little prospect

as

ments

Partner, Salomon Bros. &

Mr.

be

little

Thursday, February 25, 1954

...

Snyder,
O'Bryon,

(Special

SAN
T.
are

to

The

Financial

Henry F. Swift Adds

Chronicle)

(Special

FRANCISCO, Calif.—Jess

Wolfe
with

Building.

and

S.

Arthur

Jamieson

&

McKay
Co., Russ

SAN

to

James V.
F.

Swift

Street.

The

Financial

FRANCISCO,

Chronicle)

Calif.—
Lawyer.is with Henry
&
Co., 490 California

Volume 179

Number 5302

.

The Commercial and Financial Chronicle

...

(887)

««Mr tAREs

C0RI,

°Oardtd\S,SUPPfc'
P
carbon

sfeel product* f,

aPP''cations

Tapping 4,500,000 tons of pig iron

he

a year

in

the

manufacture

seething interior,

of National Steel's

being tapped to send
Iron

on

These
to

of steel

its way

two

products.

In its

the

mixture of coke and limestone

iron from its najtive

wrests
one

a

Increased

largest single facility used

a

ore.

Pictured here is

two newest

iron

white-hot stream of molten

blast furnaces

are

National's facilities, for

important additions
a

now

of 6,000,000 tons a year.

million

plants of National's divisions

blast

furnaces, with

a

now

is

a

combined

at

raw

from great

has

range

materials
new

various

involve

a

/pes

This

steel

of
to

coal and

ZnblZTf

GRANT BUILDING




th^rem^n"'

National

SteeiT^Us

Plans for further develop¬

program now

ip

the next three

progress

which

years.

is

National

Steel—entirely

independent,

stran-steel division

producers.
trail-Steel uailaWe

COMPANY

National mines
corp.

gkal elisor
needs of

steel-making capacity

CORPORATION

NATIONAL STEEL

INDEPENDENT

,fon>

completely integrated—one of America's leading

capacity of

4,500,000 tons of pig iron annually.

AN

o[

compan,

Reducer

type°rofrffu?tion
p,g

Detroit,

total of 12

OWNED

PITTSBURGH, PA.
BY

MORE

THAN

19,000

prod

equipment of the

new

a

important steel

phase of

of steel products.

will carry on over

Weirton and Buffalo there

.

^er

furnace corp

kinds required to manufacture National's

year.

At the

.

.

from

properties to

National Steel

ment

tons a

operations

wide range

they have increased

production of iron by approximately

ore

many

into the steel-making cycle.

one

expansion which has covered the full

finishing facilities

blast furnaces

of

pig iron capacity is but

National's

"industry^ '

iron ore

from twelve giant blast furnaces
The blast furnace is the

hanna

r/i

JVfwron
co«P,
e«7„?' 7 V*. World's

STOCKHOLDERS

£;^d

national

„

11

V

12

The Commercial and Financial Chronicle

(888)

sonal

1954—A Year of Transition

and

Association

and

must be

we

mindful of the fact that

enjoyed for the past 14
highest level
of

have

we

years

the

1953,

history.
that

So

our

country

has, to

far

for,

ing

or

have

had

most

al¬

John

of direct

H.

Vogel

participation
in

and

war

what

was

once

called

"police action" and almost eight
of price and materials con¬

a

years

trols.

In

only four

what

had

than in 1951.

have

years

might be termed

war

and

that

made

again plans can be
peacetime economy—

once

for

a

modified

though it may be
defense
expenditures.

high

looking back,

we

in

mind
war

by
In

the

of

It

ly.
and

in

on

terms

national

with

times

human

of

wealth

and

lives

has

left

heavy debt equal to four

a

the

ernment

should also keep

prosperity born
purchased cheap¬
the other hand,

not

was,

costly
us

that

was

that

be

this

lose

However,

sight of

due,

was

one

the

fact

primarily,

to

an
upsurge of 1.7 million tons in
the output of board. Total output
of paper alone, although 4% more

than in

1952, was 2% less than in
as
such major groups as

1951,

when

may

not

newsprint, fine and

coarse

papers

failed to equal the levels achieved
in 1951. The production of tissue

also

expected total of Gov¬

receipts this

much

too

could

soon

be

Weakness

There

is

the

part

on

a

of

current situation and to

our

look the

number

about

now

over¬

points of strength.

the

sure

is

Magnified

tendency, I believe,
some
to magnify
emphasize the weaknesses of

and

of

2Vfe

To b

unemploye

million and

in¬

dustrial production as measured
for the Federal Reserve Board in¬
dex is 6

7% below the peak of

or

last July.

Further, it

be said

can

that unemployment will probably
continue to rise in the months

ahead, perhaps to between 3 and 4
million, and industrial activity to
slide-off

until

it

is

perhaps

10%

the average of 134 in 1953.

the

But

lbs.,

While

have

I

it

219 lbs.

1950

to

possible

good

this

in

insofar

that

of

the

paper

less than in either

was

1951 appears to be indica¬

or

tive that supply and demand

were

reasonably well in balance. Con¬
sequently, in the event of a gen¬
decline

eral

business

in

activity,
the effects upon" the production of
paper should not be multiplied by
the

of unduly

presence

large

in¬

ventories.

always, to be sure, dan¬
inherent in speaking in terms

ger

of

broad

totals

Now

for which in the

faced with

the

com¬

the

close

of

the

have

year

asserted

themselves.

ple,

have

riod of

past year, and are still enjoying
a
period of unusual stability in

production

wholesale

when

unduly high economic ac¬
tivity to what, for lack of a better
be

termed

on

been

and

exam¬

blessed

this

prices.

consumer

a

basic

to

commodities,

to have

virtually completed their
adjustment to a level only slightly

to

riod by the close of

finally,

need for confidence

on

there

is a
the part of

all

that the job can be done suc¬
cessfully. It is for the latter rea¬
son, the need for confidence, that
I regret the recent division along
political lines as to whether we

is

sig¬
nificant that their prices began to
decline early in 1951 and
appear

above

and

it

one

that

the

of

pre-Korea
1952.

of the indications of

possibility

pe¬

This is

strong

a

will
successfully
peacetime period.
Another encouraging factor is that

adjust

we

to

the

on

the basis of

it

appears

experience

major depression.

dustry will decline only moder¬
ately from the level of $28 billion

Must

achieved

know

Have
that

mild

recession

Confidence

wishing

for

good

in

1953.

Construction

expenditures also promise to

business conditions will not alone

tinue

create them and that

con¬

tons.

it

may

alone

move

bring

about

economic

sta¬

bility.

Nevertheless, if we are to
successfully master the situation,
confidence is necessary. This can
best be brought about by a unified
Government

objectively

facing
and evaluating the facts as they
are
found and working together
to develop and implement such a
program

'An

is deemed

as

There have

ings

will

offset
and

a

and

by

level

of

chases,

including

Government,
those of 1953

all

may
as

levels

well

the

by

State

Government.
sonal

17,

backed

greater
other

.And

of

in

the

products and
productive
mean

demand

for

slight increase in

a

N. Y. 5, N.

To Hear Lecture
In¬
vestment Women's Club of Phila¬

delphia will hold its fifth educa¬

Y.

tional

study,
prepared by
J.
R. Clarke,

at 5:15

the

capacity,

it

can

intensification

an

of

only
com¬

and

merchandizing
jobs.
This
points to the necessity for a close
examination of product lines, raw
material costs and mill-manage¬

that the maximum return
be achieved. Further,
the

ment,

finance

and

States

its

large

Capital

expenditures

sity

estimated

an

$5.6

1953. The total for the
ended

1952

is

billion

in

seven years

$24.4

billion

of

which 74% is classified
The
net
inflow
of

as private.
capital into
Canada from all foreign countries
amounted to only $100 million or

less

than

0.4

of

1%

of

this

the

ment

which

vested

not only
but also rein¬

earnings of U. S.

or

con¬

in

1952, almost double the
1945 figure. On the other
hand,
portfolio investment which repre¬
sents

all

kinds

ernment

stocks

of

bonds

of

and

in

Mericka

only $774 million

merce

same

ments

months

totaled

the

$2,429

million

the
or

joined the sales de¬

completing nine
training in the invest¬

Mericka, 25, recently

from

a

one

U.

S.

70%

of

total

this

U. S. portfolio invest¬
Since the total outstanding
all Canadian bonds on

date

Marine

Corps for 21 months.

ly with the Warner & Swasey Co.
Both

panies
land

actively

are

selling to

banks,

individuals

and

and

Northern

10.5%
was

in

the

while

held

CHICAGO, 111.
become

is constantly shifting
and
important that an intensive
study be made by each of its rela¬

which

widespread

is

tive strengths and weaknesses that
no

opportunity be lost,

It

well

looks
see

then,

if

as

return

may

Those who have pre¬
it will gain and those

company it.

pared
who

for

have

penalized.

not

may

It will be

expect to

be

challenge to

a

prise"
one

meet it.
meaning

and

would

I

am

trade

This, of

course,

"free

enter¬

of

certain
the

that

no

accompany¬

ing problems for those that went
hand-in-hand
economy

with

in the past.

a

dian

of

oil

controlled

stocks

been

and

created

by

about

speculative

mining

ownership

in

impression

publicity

highly

portfolio

1954

of

competition
and the joys and sorrows that ac¬
a

sale

has

this

of

Ben Jaffe ha»

—

associated with David A.

Midwest

Mr.

Jaffe

Hentz
was

a

Stock

&

Co.

Exchanges.

formerly

was

and

with

prior

H.

thereto

partner in Felder & Jaffe.
■

I,

R. A.

Beilouny Opens

BROOKLYN,
A.

N.

Y.—Raymond

Bailouny is engaging in

164

business

from

se¬

a

offices

at

Congress Street.

the

A. J.

the

the

Canadian
rela¬

was

Noycs

Street, members of the New York

Cana¬

shares,

country

Cleve¬

Ohio.

Noyes & Co., 208 South La SaUe

curities

the

to

in

com¬

(Special to Thu Financial Chkonicl*)

only

was

Canada.

Contrary

mills

S.

approximately 85%

in

it

U.

in

engaged

insurance

Jaffe With David

$23,258 million, the
held as portfolio in¬

vestments

in

James E. Jones, 26, was former¬

was

proportion

re¬

stint

year

Korea, having been with the U. S.

and
in

announced

after

of

James

31, 1952, the ownership
bonds

have

ment securities business.

during

stitutional
investors
and
to
a
lesser extent by the general public
in the U. S.

Canadian

J.

and

principally held by in¬

On Dec.

Wm.

—

Co., Inc., Union Com¬

Building,

partment

period. Portfolio invest¬

are

&

E. Jones have

increased

29%

or

Univer¬

that James R. Mericka and James

corporations

Canada

Economics,

gov¬

bonds

Canadian

controlled

the

Canadian

as

Adds Two to Staff

subsidiaries and branches
in Canada increased to
$4,540 mil¬
lion

Bank

Develop¬

Pennsylvania, will make

CLEVELAND, O.

corpora¬

in. wholly-owned

and

Whittlesey, Professor of
and

of

turned

represents

International

Wm. J. Mericka

total

period.

Tfye United States direct invest¬
the flow of capital

R.

and

year

and

Trust

.

introductory remarks.

new

equipment have increaased each
since 1946 from $1.7 billion
in that year to $5.1 billion in 1952

the

Finance

capital

for

of

room

industry.

the

machinery

of

Reconstruction

Dr. C.

foreign capital.

construction,

sea¬

ment. He will discuss the bank
it affects the securities

expenditures since World War II
with only minor
dependence upon

share of the market for individual

spending

greatest-per¬

staff

amount of

levels

by

to

ment.

may

per¬

able

United

in the board

p.m.

Fidelity-Philadelphia

for

Kingdom, Canada has been

those who do the best production

the

finally,

the

United

petition with the rewards going to

is

of

larly

current

Company. The speaker will be
Mervyn L. Weiner of the economic

a major role in
expansion, particu¬

economic

the

of

sponsorship of the
Philadelphia-Baltimore Stock Ex¬
change on Wednesday, March 3,

jpast have played
her

lecture

under the

son

Vice-Presi¬

of

in

by the

PHILADELPHIA, Pa.—The

The

your

he

coun¬

expenditures

the

six-day basis. In
for
the
tissue

outlay

consumption
up

equal to 100%

all, and each must determine how

cuts in the

and

preliminary

exceed

of Federal funds tend to be

terbalanced

1953

last

greater outlay for highways
schools.
Government
pur¬

by Mr. Vogel before the
Tissue Association, New York
City, Feb.




the

probably be somewhat
an
increase in repairs

necessary.

already been demands

1954.

to

as an
expected decline in
the construction of private dwell¬

at

address

close

of

should approximate 95%,
exceeds 1,400.000
However, if there is a slight

decline

year,

faith, though
mountains, can not

should

that

output again

as

may

or

on

operations

group

preliminary studies
plant and equipment
expenditures for the year by in¬

will

a

capacity

1954,

that

assume

the basis of

of

the other factors of production
in the long run a disservice

I

on

has

years

year

September inventories have begun

and

a

next

closely approximate

the part of Govern¬

production, undue rigidity in
policies may be deterimental

itself;

reasonable to

seems

was

part of man¬
agement; recognition by labor that
although it is an important factor

to

past 20

consistently upward,

figures output

to recede and so long as stable
handling of fiscal and
monetary affairs; increased oper¬ prices are maintained there will
be no undue pressure to
precip¬
ating efficiency and aggressive
itously reduce them. With regard
sales efforts on the

in

it

almost

re¬

It will

ment in its

its

been

This is encouraging because since

This will not be easy.

quire skill

"normal."

we

For

stocks

Phil. Inv. Women

i t ies

trolled

plex problem of successfully nego¬
tiating the transition from a pe¬

may

1

Corp., 40 Ex¬
change Place,

tions

the many

among

million

American public.

Stake

e c u r

of markets vary

for

fore

name,

S

$836

Canada"

having numerous
the strength of
demand and the potential growth
components,

kinds of paper. Thus, with regard
to tissue production, the demand

are

are

estimated

Canadian companies owned

In¬

available by
The Dominion

There is

strengths, I believe, are
much more imposing and will be¬

we

of $300 million is included in the
totaL Speculative issues comprise
a
very minor part of the total

detailed analysis entitled

expenditures for

pleasant while they
last, but they do not last forever.

Booms

States

currently being made

the

as

industry is

the fact

For

in

desire

no

some

to

than

seems

capita consumption

per

at

less

segment of the

concerned.

but,

popu¬

amounted

four

find

to

our

faster rate, calcu¬

a

Pollyanna

a

me

paper

Current

at

situation, at least

dangerous.

more

392

1951.

too

below

year.

consumption

only

high,

new

a

growth of

was

to

that

the

lated

be

even

achieved

lation

situation, should be reminded

rent

free

a

the

armed truce has been achieved

an

for

we

Now, although we still
gray light between
and peace, there is evidence
in

should

United

United

e

in

because

economy,
stand

the

It is no more possible
legislation
alone
to
assure
prosperity than it is to eliminate
sin; and those who are disposed
to cry that the Government is do¬
ing too little too late in the cur¬

seven

years

a

"T h

vestors'

as almost 26.6 mil¬
were produced. This was
higher than in 1952 and 2%

the future.

We

war.

areas

ject of

States

by

recovering
from

many

record-

a

of

paper, as you know, amounted to
James R. Clarke
They would
dent o f t h e
almost 1.5 million tons, 10% ahead
hop up the economy
Corporation,
of 1952 and a shade better than in
by causing a fresh round of infla¬
is divided into two
major cate¬
tion and, by forestalling adjust¬ 1951, the previous record year.
gories — Direct Investments and
Total new supply of paper and
ment at this
time, heighten the
Portfolio Investments.
It
shows
possibility of a serious decline in paperboard at 31.3 million tons that while foreign countries in the

em-

in

in

industry is

paper

breaking year

program

moment

very

the

as

trend

ownership of Canadian securities
in the post-war
period is the sub¬

again

once

prepar¬

gaging

the

at

Record Year in Paper

a

mit price reductions.

large

either

extent,
been

time

a

a

States investors.

9%

understand

such

Study prepared by James R. Clarke of Dominion Securities
Corp. notes that bulk of large postwar capital
outlays has
been financed in the main
by Canada itself. Presents figures
showing extent of direct and portfolio investments
by United

oc¬

as

lion tons

best stimulated by
increasing ef¬
ficiency and lowering costs to per¬

short

of

of

that,

concerned, 1953 has been

increased; hours of

cannot

demand

In

space

I

evidence

Industry

they would raise costs of produc¬
tion

nation's

our

ticed.

is

The

work shortened; and that deficit
financing on a large scale be prac¬

advocates

prosperity

in

that wqges be

The United States Investors' Stake in
Canada

ex¬

adjustment.

more

ahead,

year

be

may

in 1949, our economy may
again, although conditions
differ, successfully negotiate the

wages,

not last forever.

considering the
what it may hold,

as

once

shortening the work week, and
starting large scale deficit financing, Mr. Vogel warns against
raising production costs at a time when demand should be
stimulated by lower prices, and thus further inflation avoided.
Holds, because of elements of strength in the current national
economy, the nation may, as in 1949, successfully make a tran¬
sition from a war-to-peace economy. Sees a tendency to mag¬
nify the weakness of current situations, but warns booms can¬

In

have

sign of weakening

curred

Asserting it would be dangerous at this time to "hop up" the
by boosting

record

on

no

reductions

there

so

economy

tax

pected to strengthen the purchas¬
ing power of our population. And

By JOHN H. VOGEL*
Economist, American Paper and Pulp

savings

yet shown

Thursday, February 25, 1954

...

Grayson Opens

A. J. Grayson

is engagaing in

a

securities business from offices at
82 Beaver Street.

ly

a

He

was

former¬

partner in Grayson-Eigles Co.„

tively less important in 1952 than
in

1945

lion

1939.

or

increase

ments

in

in

the

Of the $774 mil¬

years

stocks.

was

the

values

been

result

of

rising

additional

with additional

book

with

261
en¬

gage in a securities business.

W. G. Rossiter

holdings account¬

For-example, 47% of the

a

offices

holdings,

equity of Canadian Pacific Rail¬
way

with

at

ing for probably less than 50% of
the total.

formed

Broadway, New York City to

was

However, this increase

and

Mica Fund Distributors, Inc. has

ended

Dec. 31, 1952, more than 46%
in

Form Mica Fund Dist.

portfolio invest¬

seven

book value in

excess

Winton
the
and

&

New
a

G.

Rossiter, member of

York

Stock

Exchange

partner in Jas. H. Oliphant

Co., passed

away on Feb. 13.

Volume 179

Number 5302

.

..

The Commercial and Financial Chronicle

(889)

.

|

.

.

MILLIONS OF DOLLARS
;

Union Carbide

i:

•

t,




AND

1100

^
.

%

.

x

-

-

,

,v„

■ v

-

*:

CARBON

CORPORATION
f--

.

m

-

<■*

*

evor
CONDENSED INCOME STATEMENT
1953

Sales

$956,931,021

1,048,157,344

978,505,458

733,528,658

690,299,054

Total Income
Cost

1952

-

$1,025,833,041
of Goods

Sold, Selling, General, and

Administrative Expenses
Depreciation and Amortization.

Interest

on

75,351,702

.

Promissory Notes.

54,290,710

11,517,083

6,607,291

.

1944

'45

"46

'47

Net Income Before Income and Excess Prolits

Taxes..

'48

'49

'50

'51

'52

'53

Sales

227,759,901

227,308,403

124,976,459

128,987,704

102,783,442

98,320,699

3.55

3.41

72,235,535

72,015,860

Provision for Income and Excess Profits Taxes
and

Renegotiation

Net Income
Net Income
per

Share.

Dividends Paid

MILLIONS OF DOLLARS
180
,

4

CZH NET

WtB INCOME AND

j

r| EXCESS PROFIT

CONDENSED BALANCE SHEET

Assets

Total Current Assets

$510,399,171

15,699,522

19,744,817

6,101,408

in AHiliates and

574,498,412

5,172,117

Depreciation

and Amortization.

Investments

Foreign Sub¬

sidiaries

Deferred

TAXES

$472,762,802

658,392,229

,....

Fixed Assets After Accumulated

INCOME

ii

Charges

1

1

$1,190,592,331

$ 1,072,178,149

Patents, Trade-Marks, and Goodwill

I

Liabilities

1944

Total Current Liabilities

$207,130,929

2.70% Promissory Notes,..,

130,000,000
200,000,000

'4/

'48

'49

'50

'51

'52

'53

100,000,000

6,381,098

'46

140,000,000

3.75% Promissory Notes

'45

Taxes and Net Income After Taxes

$210,968,881

6,381,098

Reserve for
Contingencies
Capital Stock—
28,320,919 shares (28,274,744 shares in

MILLIONS OF DOLLARS
cn

1952)

70

210,173,350

by the Corporation

as

Employees......

18,786,482

236,437,460

LeSs present amount of Agree,

ments

under the Stock Purchase

Plan for

Earned

zzzziz

i/

227,320,948

40

/

30

20

f

•

-V-—-

~...

-—r

,

10

Employees......;
.

:

L_--—1~

;
•

1952).,.....

v« ••

1

50

26,264,110

:r

_

60

.

28,952,794 shares (28,806,344 shares in

-

.

•

col¬

lateral under the Stock Purchase

Plan for

_

'

208,534,466

631,875 shares (531,600 shares in 1952)
held

,

1

•

25,966,255'

.

.

Surplus

18,553,970

-210,471,205

...

•

.

1918 '20

'25

'30

'35

'

'40

'45

'50

•

'53

406,061,192

436,609,099
$1,190.592,331

*

0

208,766,978

.

Dividends Paid

$ 1,072,178,149

Copies of the complete 1953 Annual Report of Union Carbide and Carbon Cor¬

poration will be gladly furnished

on

illustrated booklet that describes the

Included with the report is

request.

an

Corporation's products—Alloys, Carbons,

Cases, Chemicals, and Plastics—and how they
materials. For copies

are produced from nature's raw
of the report and booklet, please write to the Secretary, Union

Carbide and Carbon Corporation, 30 East 42nd Street, New York 17, N. Y.

■UCCs Trade-marked Products
B akelite, Krene,

Eveready

and Vinvi.ite Plasties

Flashlights am]

Pyrofax Gas

•

Batteries

•

•

Dynei. Textile Filters

Union Carbide

Electromet Alloys and Metals

•

•

•

include
Pkest-O-I.itf. Acetylene

National Carlton*

•

Acheso.n

Haynes Stelmte Alloys

•

•

Linoe Oxygen

Electrodes* Preston k An ti-Freeze

Synthetic Organic Chemicals

13

14

The Commercial and Financial Chronicle

(890)

Create Purchasing Power by Tax
Relief at Lower Income Levels
Director, Department of

much of blame for situation

on

income

of

in

new

rather than

consumers

and

analysis

of

investment.

outlook

the

Determinations

made

been

concerning
of

for

stagnation blights the whole econ¬
We

and

the

fact.

ef¬

economy

fects

of

new

incentives

main¬

upon

taining
tinued

con¬

high

levels

of

em¬

ployment

and

last

investment?

rectly

day

hrey,
testifying be¬
fore this Joint

Committee, developed the general
thesis that naturally follows from

the

is

.

.

"double

dends,

he

benefit

taxation"

stated,

because

of

re¬

divi¬

"Everyone

the

through

economy

it

result

from

expanded

Investment

Outlays

will
will

machinery to produce higher pay¬
rolls and cheaper better things for
public consumption."
Certainly the theory underlying
his proposal has many supporters.
outside

ica

of

the

contest the

can

have

must

panding

steps
goal

Administration,

be

to

debatable.

are

ex¬

However,

taken

reach
From

the
this
one

point

of view, the objective can
accomplished by encouraging

be

investment and business expendi¬
tures for new plant and equip¬
ment. From another point of

view,

the way to reach the desired eco¬
nomic

condition

consumer

income

is

to

and

Have

stimulate

purchasing

power, which, in turn, stimulates

answered

at

a

particular

point in time: This is
abstract theory—it is a prob¬

no

lem in the context of certain
and

past

possible future trends and de¬

velopments.

What

the factors

are

surrounding this decision?
First
that
II

and

each

the

is

the

fact

post-World

War

has shown

years

for

foremost

of

a

new

even
though tax
corporations and indivi¬

on

incomes

were

continually
we had

year,

the

highest level of investments
this country has ever known; this
was true
despite the highest tax

rates, with the exception of those

during World War II, that this
country has ever known. It does
not

take

too

much

analysis

to
realize that investment boomed in
face

of

because

high

taxes

markets,

opportunities

were

In spite of these

investment

in

great.

rising levels of

recent

cul¬

years,

*A

fore
omic

are

statement

the

Joint

deny

that

necessary.
by

Mr.

invest¬

Without

Ruttenberg

Committee

Report, Washington,

on

D.

1954.




the

minating in the peak in 1953,
however, production is declining^
New

job opportunities are scarce.
Unemployment
is
steadily
in-*
creasing. Part-time work is be¬
coming the norm rather than the

to

that existing plant

say

equipment in 1954 will not be

be¬

lar time?
A

C., Feb. 8,

sumer

income

expenditures

high

very

question

requires

economy

consumer

levels.

and

con¬

remain

There

concerning

is

at

little

what

has

happened to the existing output of
American industry. Excessive in¬
ventories during 1953, followed
by
the

rapid deceleration of inven¬
tory accumulations, indicate that
have not been buying
existing plant and equip¬

consumers

all that

ment could

produce.

This lack of consumption creates
a

paradoxical

consider

that

problem
the

when

pacity of the nation must
tinually expand, year in and
out, to

absorb

we

productive

the

new

ca¬
con¬

year

influx

of

workers.
At this point in time,

therefore,
should policy be directed, as the
Secretary of the Treasury indi¬
cates,
toward
encouraging cor¬
porations to make investments in
new

the

equipment and

hope

create

job

tnat

new

such

plant, in

action

opportunities

and

treatment

economy?

Or

of

tax

of

of

relief

for

"double

to Business Do

Tax Concessions

Not Benefit Consumer
Is

taxation"
ex¬

These three proposals combined
that over 90%, or some $2,-

850,000,000, of the $3.1 billion loss
will be attributable

ex¬

clusively to tax benefits for cor¬
porations, business, and wealthy
full

effects

proposals
cause

these

felt,

are

loss

a

of

in

the

Federal

the government of $1,-

revenue to

loss of

a

policy at
to grant
corporations, to big
moment

theory that such

general

revisions

will

the

help

tax

economy

and expand, will benefit

citizen,

with

steadier

em¬

ployment and
higher standards
of living?"
The choice becomes

main problem
give special, new incentives to

quite simple: Is
to

our

get more productive capacity now,

capacity—more ability to produce
ability to buy products?

more

Secretary Humphrey's tax pro¬
posals, even if they have

basis, give

no

creased

sound

that they

assurance

themselves

in

will

a

in¬

produce

All the easy

investments.

and tax encouragement in
the world could not produce sig¬
money

nificant

On

investment

basic

when

other

the

after

markets

hand,

were

there

1929,
weak.
can

be

little question of what would hap¬
pen

the

the

American

of

present

eco¬

situation

confronting the
therefore,
production

income

excise

tax

tax

Rather, I think Sec¬
retary Humphrey's proposals will
have

laid

that will only
increase the gold of the wealthy
taxpayers. This is an egg that will
an

hatch

not

laid in

egg

because

it

will

not

be

atmosphere of increased

an

demand for the products of Amer¬
ican

industry.

hidden

the

in

stockholders
an

It

will

merely

be

period that is dan¬

gerously long.
There is

granting

to pursue

best

can

an¬

solved

be

concessions

tax

American

of

mass

by
the

to

consumers,

thereby increasing their purchas¬
ing power, stimulating demand
and, through that demand, cre¬
ating an atmosphere that existed
throughout the post-World War
II

when investments in¬
in and year out, re¬
gardless of the level of corporate
period,

creased

year

individual income taxes.

or

ly find its

way

panding
end,

If

economy.

will

we

have,

because

of

higher

will
an

purchasing power can be ac¬
complished best, I repeat, at this
in

time,

by increasing
individual income

personal,

on

taxes

April

to

1,

By

should

policy be aimed at increasing the

and

large

investment

the

world,

including underwriting
bankers, is interested primarily in
what the Treasury may have in
mind in the way of refunding and
new financing to take care of its
fiscal

needs

over

the

next

few

months.

more

create

an

point of stag¬

a

such

an

atmos¬

in savings and

wait for incentives to

centives

that

creased

demand

will

of present

its

absorb

come

of

invest—in¬

only with in¬
a

type

than

that

all

the

product that existing plant
equipment can produce.

and

more

fund

Treasury

as

authori¬

much

in many

months. A "street-sized"
deal, this one brought out no less
than ten separate bids, and will
the first utility offering to
3% yield basis in the cur¬
phase.

prove

break

a

rent market

successful

The

company

the

paid

group

price of 100.089 for a

a

3% coupon rate and plans to reprobably today, at 100.625

for

yield of 2.97%.

a

also bidding for

The runner-up,
a

3% interest rate, offered to pay

price

a

indicating

100.041

of

a

spread of less than five cents per
$100

piece.
Week

Next

With

son's

additional

shares of

000

Busy

Edi¬

California

Southern

negotiated offering of 600,common

stock

topping the list, tentatively
for Tuesday, next week promises
to provide enough business to take
been

have

who

coasting.

$20,000,000 of
Gas Co. bonds

brings
Natural

of Houston Light
will be up for

$30,000,000

bonds

Power

is

market

the

Wednesday

in,

Island

And

bonds.

term

as

debt

on

a

on

Lighting Co.

Now With Jamieson & Co.
(Special to The Financial Chronicle)

SAN FRANCISCO,

C.

filiated

possible

short-term

pany,

Kausen

Calif.—Ken¬

has

af¬

become

Jamieson

with

Com¬

&

Russ Building.

long

in that direction.

provisions

will

away

new

witnessed

keenest

the

was

Clement Evans Adds

Current Tax Reductions Defective
But the current tax

recommen¬

AUGUSTA,
Kirkpatrick is

is persistent conjecture
forthcoming financing will
one to two billions of long

There

A. Evans &

Ga.

Milton

—

now

E.

with Clement

Company, Inc., Marion

Building.

include

That

bonds.

would

the

enable

Treasury to keep within the debt
limit imposed by Congress until
action is taken to raise the

figure

if necessary.

atmosphere, incentives to

taxes

$5,000,000

(Special to The Financial Chronicle)

phere, wealthy stockholders and
corporations will put their re¬
duced

tion

that

Without

bonds

City

Atlantic
of

for

Co.'s

Electric

conditions to go as far as possible

atmosphere for investment in new
plant
and
equipment.
Without

nation.

Breaking Through

Competition

neth

Since it is the expressed inten¬

of

steps would increase the
spendable income of people who
normally spend all they earn. The

decline to

news.

bonds, half in serials and the bal¬

ties to

These

an

cheering

was

On

tax

permit.

invest

eighth" the broadened inquiry

an

take advantage of present market

reducing excises

such

"less

at

basis, it is believed that they will

automatic

demand

hands

going

by

even

than

resultant

compa¬

still bonds

are

ex¬

further and

the

there

dealers

in

pre¬

automatically

lapse
and

insurance

two

While

nies.

bank,

a

pension fund client,

a

prepared to handle an offering of
$50,000,000 of Province of Ontario

the

exemptions and by permitting
cise

from

and

from

orders

sumably for

bids.

of

point

sizable

&

to. stimulate

industry to produce at

capacity

a

Thursday investors will be offered
opportunity to subscribe for 70,000 shares of preferred of Long

Increased purchasing power will
full

after

our

is

people.
encourage

Friday

ance

of the American

power

3.07%, the "pot"

last

ex¬

income and increase the

purchasing

&

3V6s,

of

slow start, and this week brought

Southern

in¬

an

this

yield

to

Gas

$60,000,000

cleaned

and

to

building

and

priced
was

Pacific

of

case

Monday

give
lip
service to the idea of maintaining
prosperity

to

But this week the spon¬

the

dealers

into the spending

seems

out

the kinks out of underwriters and

stream.

Everyone

brought

3% went slowly at

Electric's

and/or

Such

SVss,

even

offer,
need

no

It

us.

had

closing of the books.

In

alogies of eggs and geese further.
There is an economic problem be¬
fore

which

reported oversubscription

and

savings of wealthy

anjd corporations for

incubation

exemptions

cuts.

of

an

the start.
sors

golden egg.

increases in personal in¬

dividual
and

of the

consumers

increases

wage

face

country,

by increasing the incomes of
mass

yield

around

is it to encourage more buying

or

$1,200,000,000, and

the third, an additional $100 mil¬
lion.
In

issues

less stalemated since

or

Louisville Gas & Electric's $12,-

000,000

stockholders.
the

more

brought to market within the last

mean

When

recent

will not be the goose that laid the

wise

it, therefore,
particular

been

losses.

revenue

Starting to Roll

,

Two

fortnight, started to move this
week, with one group able to close
subscription books and the other
to report the "pot" cleaned.

tending the period of carry-back

in

Such

move,

de¬

dividends; and the third is

of

investment.

though not necessarily so
intended, could ease the Treas¬
ury's task in the days ahead.

a

par¬

preciation; the second is the
tial

proportionate amount of

bank funds for

has

alization

But

a

With Weil,
(Special

to

The

Pearson Co.

Financial

Chronicle)

CHICAGO, 111.—Arthur R. Rapp
has

associated

become

with

Weil,

major part of impending

operations

will

probably

of

ne¬

Pearson

cessity be in bank eligible paper.

formerly

Accordingly,

Co. of

&

Boston.

fraternity
to

the

is

the

underwriting

keeping

ground

in

a

close

serve

was

Mabbatt

&

of
Re¬

Joins

to turn the tide of corporate

(Special

borrowing

which

has

been

run¬

ning out swiftly since the begin¬

ning of the

of

Lloyd & DeGeus
to

Jr.

The

Financial

Chronicle)

fll.—(George

JOLIET,

has been

P. Foster,

added to the staff of

year.

reduction

in

the

Lloyd

reserves

&

DeGeus,

Rialto

Square

percentage

for member
-banks, it is noted, naturally would
required

R.

ear

anticipation

further action by the Federal

with

H.

He

Co.

A

expanding

which

revenue

One is the liber¬

nomic

levels of demand. The stimulation

balanced

that

in

been approved.

producing at its ultimate capacity.

consumer

stimulating
an
expanding
and
growing economy at this particu¬

Econ¬

loss

creased income would undoubted¬

We must, therefore, answer this
question: What is wise policy for

ments

it

and

through

equipment.
can

fice

through

very

billion

550,000,000, while the second will

and

government, were tremendously
strong in those years and profit

econorpic

free up a

three specific tax proposals which
account for almost all of the $3

mean

panel, could be cited. Suf¬

primarily

consumer

cognizance of these
problems.
There
are

no

in the

record

investment

rates

by the Administra¬

Committee and to the participants

or

exception.

one

mates, familiar, I am sure, to this

"to grow

be

investment in expanded plant and

No

1953.

every

must

us

take

tee

the

business, to wealthy taxpayers on

lose

not

during

made

1954 than were produced in three tax
Many
other similar esti¬ first will

year

this

Been

million

1V2

to

produced

cars

before

the

growing and

economy.

to

either inside

belief that Amer¬

a

fewer

the

rising. In the past

or

million

a

sight of the fact that the question

dual

resulting creation
jobs with better tools and

no one,

of

%

consumer

must

we

of

Furthermore,

conces¬

High

Moreover,

benefit with the
more

tax

new

di¬

done

be

through encouragement to
business, or will such investment

cussing tax proposals to liberalize
to

such

.

Payrolls make consumers." In dis¬

depreciation and give partial

What

sions,

Treasury

"Production

is,

to stimulate

Must

of

Hum p

goose that laid the golden egg.

dynamic

a

investments.

however,

way

week,

the

comment,

best

new

auto¬

industry

concessions to

Secretary

S. H. Ruttenber*

question,

is the

have

cannot

income and purchasing power?

production.
One

The

not here to contest this

without

The

the

has announced
that there will be approximately

job

am

during

1953.

of

dations

tion and already approved by the
House Ways and Means Commit¬

about

average

produced

week

mobile

production
declines,
opportunities
dwindle,
and
I

the

on

was

same

inefficient,

possible

lief

than

them, plants become obsolete, and

omy.

be

470,000 tons of steel per week less

have

ne\vlnvest¬

steel

the

1954,

probably

producing

increasing spendable
expanding investments

level

th«e

ment

his

about

along with elimination of excises.

There has been much discussion

industry
operating at
80% of capacity. This means

of

would

plant and equipment, and advocates reduction in taxes

lower income groups

on

half

on

on

Steel

States

United

the

Presi¬

the

day,

Company, Mr. Benjamin Fairless,
announced that during the
first

workers' inadequate purchasing

Says emphasis should be put

other

the

of

dent

influx of workers, CIO economist lays

power.

and

courage

Education and Research

Asserting lack of consumption creates a paradoxical problem
when it is considered that productive capacity must continually
new

product of existing
equipment
and
en¬
expansion to meet everthe

up

plant

Just

Cohgress of Industrial Organizations

expand to absorb

buy

people to

the American

enabling

widening needs?

STANLEY II. RUTTENBERG*

By

spendable income available to the
mass of American consumers, thus

Thursday, February 25, 1954

...

Building,

members

west Stock

of

Exchange.

the

Mid¬

Volume 179

Number 5302




.

.

.

The Commercial and Financial Chronicle

(391)
\)

■

..

Directors
Lewis L. Clarke

A

Banker

neighborly enterprise
makes its Annual
Report

Harold V. SmitiI
President

Frederick B. Adams
Chairman of Executive
Committee, Atlantic Coast
Line Railroad Co.

Robert W. Dowling
President,

City Investing Co.

In early timesand other perils, the community-at-largetolacked stability. Without
provide security against
by lire before man lrad developed enterprises

George Gund

loss

a

dependable

system of insurance, the

well-being of its merchants and citizens

President,
Cleveland Trust Co.

.

Harold H. Helm

was

President,

constantly endangered by the hazards of chance and the threat of disaster.

Chemical Bank & Trust Co.

Charles A. Loughin

rJoday, property insurance olfers dependable financial security to the public.
It is

provided, in its

nessmen

to

their

in

efficient form, by agents and brokers, independent busi¬

community who

every

Vice President <t

General Counsel

most

friends and neighbors

are

well

as,

as

Ivan Escott
New York

advisors

Percy C.

policyholders. Behind its local representatives stand the strength and

City

Madeira, Jr.

Chairman of Executive

.

.

Committee, Trndesmens Land

stability of The Home which has enjoyed the distinction of serving American

Title Bank it Trust Co.

Earl G. Harrison

property owners for more than a century.

Schnader, Harrison,

Segal & Lgwis

Champion McDowell Davis
President,
Atlantic Coast Line

Phesident

Railroad Co.

Warren S. Johnson
Investment

,

Counselor,

Peoples Savings
Bank & Trust Co.

licilcuico SllGCt•,

of

Wilmington, N. C.

December 31, 1953

Henry C. Biuinie
President,

ADMITTED ASSETS

Empire Trust Company

United States Government Bonds
Other Bonds

v

.

.

.

.

.

.

.

.

.

«

.

.

.

*

.

Preferred and Common Stocks

Investment in The Home

Agents' Balances

or

Companies-.

.

.

The First National Bank

Indemnity Company

Shearman &

.

Chairman of Board,

Metropolitan Life

20,080,648.46

.

Other Admitted Assets

Sterling & Wright

Licroy A. Lincoln

6,868,322.19
.

,

Boykin C. Wright

14,513,554.00

Uncollected Premiums, less than 90 days due

of

Columbus, Grt.

35,909,076.68

.

V

...

Chairman of Board,

90,970,307,64

150,854,115.00

Cash in Office, Banks and Trust

Ileal Estate

IIariiin K. Park

$ 71,964,673.86

.

Insurance

Company

5,860,915.65
Thomas J. Ross

Total Admitted Assets

$397,021,613.18

Senior Partner,

Ivy Lee and T. J. Ross

LIABILITIES

Henry C, Von Elm

Reserve for Unearned Premiums

Taxes

Honorary Chairman of Board,

$176,869,947.00

Unpaid Losses and Loss Expenses

Manufacturers Trust Company

34,806,349.36

.

Payable

John M. Franklin

7,550,000.00

Reserves for Reinsurance

Dividends Declared

United States

2,000,000.00

Other Liabilities

President,

1,457,663.89

4,973,203.10

Lines

Lou R. Crandali,

Co.

•

P resident,

Total Liabilities

Capital
.

.

Vice President

Leonard Peterson

149,364,450.13

Vice

Surplus

as

Regards Policyholders

•.

.

Bonds carried

required by law.

at

$5,752,632.57

amortized

Vice

,

value and

Casli $82,500.00

in

the

above

balance

sheet

are

deposited

Based

on

December 31,
the

1953 .Market

Surplus

as

Quotations

for all bonds and stocks

President

& Secretary

J. Edward Meyer
as

President,

All securities have been valued in accordance with the requirements of the National Association of Insur¬

Commissioners.

Assets would be $396,941,878.98 and

& Controller

Herbert A. Payne

1397,021,613.48

*

•

President

$169,364,450.13

•

Total
1

ance

Kenneth E. Black

20,000,000.00

Surplus.

NOTE:

George A. Fuller Co.

$227,657,163.35

Cord

owned, the Total Admitted

Meyer Development

Company

Regards Policyholders would he $169)284,715.63.

Arthur C. Babson
Vice President,

Babson's Reports,

THE HOME >
FIRE

•

AUTOMOBILE

Home Office: 59 Maiden Lane,

The Home

Indemnity Company,

an

•

MARINE

New York 8, N. Y.

affiliate, writes Casualty Insurance, Fidelity and Surety Bonds

o

Inc.

*

15

\

16

The Commercial and Financial Chronicle

(892)

Gulf

What We Face in Korea
By ARTHUR H. DEAN*

Ambassador Dean

describes

Peter Morgan &

City

Partner, Sullivan & Cromwell, New York

geographical, economic and
military situation in Korea, and conditions leading up to the
Armistice.
Lists as principal problems in the peace negotia¬
tions:
(1) the demand of the Communists that Russia partici¬

share.
Such preferred stock is convert¬
ible on or prior to 1960 into shares

common

preferred stock.

a

(6) fixing of the agenda.

nomic
It

is

a

great

assistance

privilege

pleasure to talk to

so

and

of my

many

old friends here in the ''Street."

We

"C

what

are

a

n

y

o

FPA

used

to

call

hour

have

grown

latest

London

to

hours

22

minutes

argued

hour.

It

is

and

Royce

bawled

by

miles

times

the

of

its

Comet

Khartum, Sudan, in 6

and

out

1,600

jet airliners flew 3,080 miles from

up

worked

been

Bell X-la

a

two

version

you,

you,

meeting.

are

sound.
And
just last
Series II plane, Great Bri¬

a

tain's

herewith

with

eco¬

of

week

481

or

driven

by

miles

four

an

Rolls

at

ago

National

a

the

at

share

each

for

stock

The

of

1956

upon
30 days' notice at a
price of $12.50 per share, subject
to the prior conversion thereof.
The major portion of the pro¬
ceeds of this financing will be ad¬
vanced
to
Compania de Azufre
Veracruz, S. A., a subsidiary, for
the purpose of obtaining as large
a
production of sulphur as pos¬

sible

the

by the Frasch Process from

Mezquital concessions located
in

the Isthmus of Tehuantepec

on

the State of Veracruz, Mexico.
Gulf Sulphur Corp. was incor¬

Guard

of you for not

officer flew the 2,530

porated

having under¬
writing con¬

Los
4

tracts,

miles

1951, for the principal purposes of
exploring for, developing, produc¬
ing and selling sulphur. The com¬

syndi¬

cate
m

t

n

other

s

pared
all

to

or

Arthur

H.

Dean

as

time. Some

know

you

or

practically
my first

introduced

"Ambassador."

to

But

you

I

me

as

an

won't

talk

to you today about the underwrit-'

ing

case.

Rather
you

I

would

like

talk

to

to

briefly today about the

very

problems

face

we

in

war-torn

Korea.

Many of

you

familiar with

are

pilot plane

a

scheduled route
When

by

me

Consequently it startles

be

minutes,

612

or

the other day

Stockholm in about 24 V2

to

pre¬

on

of

name.

8

and

hour. And

an

a

docu¬

ments

hours

Scandinavian air line flew from
Los Angeles over the North Pole

agree-

e

miles from
Angeles to the East Coast in

I

for
to

Japan

in

loans

on some

to power companies

the

there, it took

by the northern ship route and 20
by the southern.

Today

fly the approxi¬
mately 9,000 miles from our east
coast

to

Seoul, Korea with short
stops for fueling in about 36 to
hours

at

an

speed

average

in

and

of

about 270 miles per hour.

the

last

vate

war

funds

have

or

traded

or

been

out

invested

or

pri¬

there for your or¬

out

ganizations.

Fifty

the

of

vital

most

roles

Orville

in

important

the

world

and

of

com¬

when

ago

Wilbur

Wright first flew the
air

machine, it took

approximately 6 hours to
New York to

belong to the group which
raises private capital for Ameri¬
can
industry. It is you who play
one

years

heavier than

You

to construct

Sulphur

standing,

plant

a

Corp.
the

prior

pro¬

or

has

to

out¬
fi¬

above

nancing, 1,925,000 shares of
mon stock'tpar 10 cents).

from

go

com¬

purpose

11' there is

anything like the im¬

Hooker &
CSpecial

to

Fay Adds Two

The

SAN FRANCISCO, Calif.—Ray¬
mond

Hornby, Jr. and

Albert L.

Hoogs have become affiliated with
Hooker

&

members
San

of

the

Hornby

was

previously with

Dean Witter & Co. Mr. Hoogs was

with

Reynolds & Co.

Davies

and

With Marshall Company
(Special to The Financial Chronicle)

MILWAUKEE, Wis.—Francis W.
Koller

Roedl and Norbert A.

now

productive

let

pany,

and

easily

next

50, you can
that places like Japan,

see

most of my professional life work¬

Korea

ing with

relatively closer to New York City
by aerial transportation than New

You

in these fields.

you

are

with

thoroughly

the

general

familiar

location

of

Korea, Indo-China, the Philip¬
pines, China,
Manchuria, the
U. S. S. R. and Japan.
But

bear

with

me

A Mountainous

moment.

a

Country

Korea,

as you know, is a 525
long "S" shaped peninsula
extending southward from Man¬

Soviet Russia to with¬

in less than

was

by

ago

Indo-China

to

go?"

"What
we

In June of

Korea, set
of

is very mountainous.
85,000 square miles is
approximately equal to that of
Minnesota. The area available for
of

cultivation
Tbe

the

and

East

Sea

across

is

the

of

Japan.

Yellow

Korea

To
Sea

lie

west

China

the .Soviet controlled
ports of
and Port Arthur. To the

Dairen
south

is

the

Korea

Strait.

Ap¬

proximately 500 miles to the
lies

the

island

of

approximately
south

pines
and

and

miles

then

further

Philippines.
west

of the

Indo-China,

are

south

Formosa:

390

the

are

of China

the

38th

armed

doing in
we
stay?"

do

up

Republic of

under the auspices

Nations,

forces

from

Parallel,

South

Philip¬

Thailand

Malaya.

at¬

was

North

inspired

of

and

by the U. S. S. R.

to

1950,

the

we

the

north

reso¬

United

Nations

15

the

Nations

United

other

public of Korea.
unified

command

Nations'
down

and

We
of

collective

aggression.

the

took

the

President

on

Re¬
the

Manchuria,

treme

northeast

fronts

on

from
are

*A

Club

and
the

to
U.

the
S.

some

misleading.

of

S.

R.

5.600 air mil^s

Seattle. But
statutory

talk

ex¬

Korea.

lies

by

New

been

art

and

N.

Kenneth

Peters is engaging

rities
firm

Mr.

Kipling

business

from

name

in

office

Street,

Fogg,

at

Dean

York,

before

Jan.

25,




shall not dwell

upon

(Special

to

The

Financial

Hopkins
with

has

associated

become

Beyer-Rueffel

&

Co.,

Kahl

Voss & Co. of Chicago.

the

And

we

He

was

formerly with

M. J. Rosenshine
(Special

sentiment

sively and

Continued

on

1

of

made

merger

which

prog¬

Wall

in

of

rumors,

seldom

there

dearth

little

couple of beneficiar¬
is

any

Street,

had

good speculative plays.

some

Reo Motors

was

of them

one

which, after adding some 15%
value

in

unconfirmed

on

ru¬

mors,

bumped into the inevi¬

profit-taking this week-

It reacted

somewhat

violent¬

far from

are

*

❖

generally. They

get going impres¬

Oils

con¬

❖

Subsiding

Oils, and particularly high-

firming the 24-year new high
priced Amerada in the
posted by the industrials. The
coming along currently

aren't such

as

to build up any

sustained demand for the

group,
uncertain way. After

car¬

their

recent

a

cline in income in
*

#

general de¬
January.
$

out

rail

the

manage¬

were

in the

to

some

able

popu¬

of the
stand

to

daily lists of

new

highs, they, too, subsided this
week.

Even

return

larity, in which
members

riers, what with

Amerada

fraction

came

within

of

equalling its
ments have shown a cautious
1953 high before its strength
outlook, the case of Erie prob¬ oozed
away, too.
This stock,
ably being one in point. Erie to many of its followers, was
shifted to a quarterly pay¬
"the" stock of the post War II
ment basis
against the old period until a couple of years
semi-annual system this week.
ago.
Split 2-for-l in 1946, the
But the 2 7

-cent initial quar¬

terly payment is equivalent to
a
$1.50 annual basis which
compares

a

split issue quickly returned to
the

pre-split level by 1951
was
again split 2-for-

when it

with the $1.75 voted

calculated to

move

1.
The following year the
hardly twice-split issue had a higher
spur in¬
price tag than even the old

Erie, inciden¬ shares had
posted. After 1952
completed a it calmed down and now is

has

now

of annual

years

would

pay¬

in that well-

grow

page

MOP Stands Out

As

about

midway in the two-year

trading

range.
*

*

❖

Movies Getting Good

Play

A

to

The

Financial

FRANCISCO,

to

at

Opens

Chronicle)

exception and the
was

the

Calif.

—

Motgomery Street
in the securities busi¬

hopes

the

After
net

BOSTON,

Financial

Chronicle)

Mass .—Richard

Chamberlin is
A.

over

now

F.

associated with

E. Ames & Co. Incorporated, 50

Street.

well

is

the eventual

its

ground
ignored a
postponement in a

dividend

meeting set for to¬
Despite the excuse for

day.

the delay given as "lack of a
quorum," which might have

sue

did little.

from the bankruptcy
'Thirties

adding

last

more

The

here

major carriers still to

emerge

sion.
to

motive

stood

pretty

tures and

With A. E. Ames & Co.

36 Congress

The

which

and

in the week's

Missouri Pacific pre¬

some

Columbia Pic¬

Loew's, which hcive

been forging into new high
depression. ground for more than a year,
four points continued to show above-

week, the issue this average action.

week added

ness.

(Special

one

an

reorganization plan that will brought some precautionary
materialize for this, the last selling by the skeptics, the is¬

of

155

engage

Fox

usual, there's always

of the

Monroe J. Rosenshine has opened
offices

the part

aggression or the part it played
in the
organization, training and

Bond

*

Chronicle)|

put

out¬

the

on

ferred.

DAVENPORT, Iowa—Robert M.

that the U. S. S. R.
played in that

1954.

❖

have yet to

the

of Stuart Peters & Co.

to

stopped the time-table of Red ag¬
gression in the Far East.
I

ies

list
A

longer-term point ly after pushing to a new high
of view, the rails continue to for the past 14 months as well
exert a heavy drag on the as equalling the best price
market's technical action and posted since 1948.

240

Beyer, Rueffel Adds

SAN

pay.

thd

ress.

the

secu¬

a

under

gave

miles

is

For

moving widely while the bulk
of

table

*

rails

to one of our outstanding
military leaders, General Douglas

not

con¬

dation

good share of speculative
':
|
known bether region before play persists in the movie is¬
sues
and they gave a good
Stuart Peters Co. Formed
Erie would make payments.
(Special to The Financial Chronicle)
*
*
*
showing of stability, even in¬
SANTA MONICA, Calif.—Stu¬
cluding Twentieth Century-

post

does

of

formed

Building.

gression

the

are

logically

sort

some

solidation.

tally,

Vice-President and Treasurer.

of

lies

Korea

for

ments since its 1941 reorgani¬
with
offices at 2202 El Cajon Boulevard zation. And it has pretty well
to engage in the securities busi¬ shaken off the famous
reputa¬
ness.
Officers are Gerard R. Bill,
tion of the old days that icicles

has

United

effort

We

brief year-

a

interruption,

called

DIEGO, Calif.—G. R. Bill

Company

Command,

members

Rivers. North and northwestward

of

five months with

vestor interest.

Twenty-sixth

We
did
not
unify Korea by
military might. But, among other
things, we proved that armed ag¬

Korea

was

& Co.

I

To

marketwise.
For another, the
strength shown so far this
year, and in fact for the last

a

Company and in the
with John A. Toennessen

MacArthur.

winding Amen (Yalu) and Tumen

irregularity this week,
caused much
dismay, how¬
ever. For one
thing, February
is traditionally a poor month

past

contributed troops

along with

con¬

tinued

end

what es¬
classic consoli¬
phase, special issues'
a

for the last four years,

lutions by the Security Council of
the United Nations in June and

July,

range

the

nor

ifi

Industrials put on

-

get out of it?"
1950 the

United

by

we

Following the adoption of

faces

the

the

tacked

relatively small.

coast

of

are

"Why

"What, do

120 miles of southern

but

formerly with the City

was

SAN

many

Korea?"

trading

Bank & Trust

G. R. Bill Co. Formed

of you the thought
must often have come:
"Why did
we

a

£

❖

of the

Neither the sentially was

side,

years

Many
cf
you
have
sons
or
nephews or loved ones in Korea
to

of

the down

dozen

Florida

area

Washington 50

765 North Water Street. Mr.

Roedl

rail.

Japan. It is shaped somewhat like
Its

be

may

Military Role of U. S.

and

mile

churia and

York

and

week

and

Exchanges.

affiliated with The Marshall Com¬

the

breakout
on

ready to sell off than to

more

be bid up.

after posting

yet

minus

last week.

year

Street,

York

New

Stock

Francisco

Mr.

Pine

340

Fay,

provement in the speed of trans¬
portation in the next 10 years,
alone

woods

first

Chiionicle)

Financial

bating communism, the channel¬
ing of American investment in
enterprises both here
abroad; and I have spent

proved

wove an

of calcu¬

lating the relativity of various
places, we have abolished the stat¬
utory mile.

the
the

facts

& Co.

Washington.

Thus, for the

market

1,

other
facilities for the production of sul¬
phur by the Frasch Process.

one can

the Far East. You have served in
the Army, Navy or the Air Force
there

Aug.

on

14 days from the West Coast

some

40

Delaware

through its subsidiary

pany
poses

Gulf

the Pole.

over

went

Fall of 1927 to work

hours

regularly

a

in

stock

this week that it isn't out of

has

company

A

jet engines and
7,000 pounds thrust.

days

stock

common

is

Avon

rated
few

many

B

right to redeem all or any
part of the preferred stock after

about

or

class

rate of two shares of such class B

Korea.

Recently a pilot in
jet plane flew over
per

of

the

dated. East and West

speed

n

Fodder."
I

southern

to

Pleads for

The

participating stock (par 10 cents)
at $10 per

secretariat, and

as

By WALLACE STREETE

Sulphur Corp. 60-cent non-cumu¬
lative convertible preferred and

"neutral"; (2) the question of the attendance of
neutrals; (3) the voting rights of the two sides; (4) the
scheduling of debates; (5) the make up of the conference's
pate

THE MARKET... AND YOU

Co., New York

City, is publicly offering "as a
speculation" 700,000 shares of Gulf

the

Thursday, February 25, 1954

Sulphur Slock

Offered at $10 a Share

Special Ambassador for Negotiating Korean Peace

...

much

as

points in

a

as

three

single

ses¬

Unlike the MOP issue,

❖

,

Aircrafts
week

road

came

to

*-

during

the

the

end

to

past
of

a

degree.
They
the other rails were more re¬
were
generally far more
strained in their action, al¬
prominent on the losing side
though

they

did

seem

far

than in

some

new

strength.

Doug-

\

Number 5302

Volume 179

.

The Commercial and Financial Chronicle

..

las, with the enthusiasm over around the best level

in

seen

(893)

With First California Co.

forthcoming stock split the last half of a decade. And
the annual report, issued this
over, was able to dip widely
without encountering much week, showed the stockhold¬
the

ers

to

have

risen

to

(Special

LOS

than

were

on

the sidelines the widest

sizable liqui¬

any

dation.

Chemicals

was

in the country.

J.

and Mon¬

santo and Dow had

Dow's specific
the opinion of most

ing moments.
trouble, in

stock

2V2%

its

that

the

from

stemmed

that have become

payments

has yet to

[The

R.

Williston, Bruce & Co. and

article
time

do

not

LOS

Chronicle.

They are presented
those of the author only.]

The

Financial

Chronicle)

has

The

Financial

become

formerly conducted

dena

and

prior thereto

was

M.

Nash,

Jr.

Hope

New

Street,

members

and

Los

been

added

to

Now Burns,

Co., Van Nuys

Building.

OKLAHOMA

firm

With King Merritt

Ryons & Co., 623

York

has

the staff of Sutro &

(Special

South

the

as

of

to The

MACON,

Angeles is

Stock Exchanges.

—

affiliated

now

ritt &

Co.,

Leland

change

Spicer

Building,

has

pany

This

stock.

Co., Inc.

Inc.

pany,

BRIGGS & STRATTON CORPORATION

arises

of

out

BALANCE

a

recently invoked ruling of the
New
York Stock Exchange
that cash and stock dividends

together should not exceed
earnings. The ruling was on
the books for
was

some

time but

used for the first time to

halve the International Busi¬

ment.

Accounts

i

Cash

...$ 3,033,570

United States Treasury notes, tax series, at cost

Receivables, less

reserve

of $ 10.000

Total

or

»»............ n>...

assets

current

again

of

a case

was

6,539,120

re¬

ported mergers that gave a bit
prominence to some of the
issues in the long-depressed
Bobbins

textile

Mills,

once

group,

officially

engaged in talks of a merger
with American Woolen, was

especially

—

$ 5,797,197
United States Treasury notes,

fax series, at cost,

including interest.

5,797,197

...

.$12,205,837

.

(face amount of policies

of

dormant

—

Federal
Less

market

1,237,340

j

Provision for income taxes

1,512,529

Inventories, priced at lower of cost

(first-in, first-out)

$ 1,121,581

payable

Accrued liabilities

1,120,618

$

-

517,007

517,007

CASH SURRENDER VALUE OF LIFE INSURANCE

Textiles and Mergers

and

LIABILITIES
CURRENT LIABILITIES:

Wisconsin

*

❖

1953

31,

ASSETS

,

*

It

DECEMBER

CURRENT ASSETS:

Machines last stock pay¬

ness

SHEET-

active,

UNEXPIRED

INSURANCE

PLANT AND

$300,000)

—

176,708

PREMIUMS, ETC.

Capital stock—

EQUIPMENT —at cost:

specific spur, logically if not
officially, is that such a deal
is back ill negotiation which
has the virtue of providing

|

Authorized 750,000 shares,

Land and land improvements

$

Buildings and equipment
Machinery and equipment

without par

412,775

1

599,992

$

shares, at stated value

5,808,122

Office furniture and fixtures

value

Issued and outstanding

1,551,628
237,225

Earned

$8,009,750

Add

surplus

#

for

Reserve

—

#

depreciation,...

3,240,483

Net profit for

—

300,000

—

Balance December 31, 1952.
i

Less

even

though it was far from spec¬
tacular, in price action.
The

$ 2,875,928

Total current liabilities

I

CAPITAL STOCK AND SURPLUS:

60,523

the

.$12,478,819
'

year

(per accompanying
summary)

3,241,906

<

$4,769,267

Patterns, tools, dies, etc.

—

at fixed amount..

4,819,267

50,000

$15,720,725
Deduct■— Cash dividends

PATENTS, TRADE-MARKS, ETC.— at nominal amount...

($2.75

paid
share)......
1,634,317

per

,

14,386,408

14,086,408

$17,262,336

$17,262,336

the

ailing American Woolen
a
quick entry into the
synthetic textile field.
Also
responsible for at least a mo¬
mentary interest in this group
with

the

was

fact

that

Celanese,

SUMMARY OF

at the board

meeting Monday.

Steels ruled

bit heavy as

a

production dropped under
three-fourths of capacity, one
of the

signposts that business
off a bit. In the

is slackening

forth

COST OF SALES, SELLING, AND GENERAL AND

Profit from

closer

to

civilian

can

be

a

ent market influence.
*

*

Through all the market gy¬
rations, American Telephone
continues to follow a creeping
uphill maneuver independent
the

sentiment

around

a

based

on

During the
retirement

,w,-,..

1,060,000

month, the stock climbed to

financial

1953

are

set

statements

Andersen & Co., and their certificate is

1953

year

1952

was

$3,241,906

year

of $3,065,449

earnings

$5.40

or

per

share,

share

were

paid during 1953.

expended

we

trust

fund,

of

or

on

which

>.

expansion and
was

$376,000

equipment

new

paid into the employee
applicable to past

was

benefits.

$4,500,006

profits tax,......n........■...

These

statements.

approximately $1,153,000; and $787,000
service

ended that date

$5.11 per share,
the 599,992 shares outstanding at December 31, 1953. Cash
with

dividends of $2.75 per

Federal—-

year

part of this report.

profit for the

compared

and

surtax...

„

The

year

1954 began with

a

large back-log of orders in both divisions.

$5,560,000
Wisconsin

..

490,000

Respectfully submitted,
6,050,000
C. L. COUGHLIN

Net

profit transferred to earned surplus....

President

$ 3,241,906

AUDITORS' CERTIFICATE
We

have

examined

the

balance

sheet of

BRIGGS & STRATTON

CORPORATION (a Delaware corporation) as of December 31,

1953,

profit for the year then ended. Our examination was made in accordance with generally accepted audit¬
ing standards, and accordingly included such tests of the accounting records and such other auditing procedures as we considered neces¬
sary in the circumstances.
In our opinion, the accompanying balance sheet and summary of profit present fairly the financial position of Briggs & Stratton
Corporation as of December 31, 1953, and the results of its operations for the year then ended, and were prepared in conformity with
generally accepted accounting principles applied on a basis consistent with that of the preceding year.
Milwaukee, Wisconsin
ARTHUR ANDERSEN & CO.
February 10, 1954
and

the

related

summary

of

BRIGGS &

STRATTON

CORPORATION

World's Largest Builders of Single Cylinder

-

Milwaukee

I,

i

.

Wisconsin,

i

1

U.S.A

4-Cycle Air'Cooled Gasoline Engines and Automotive Locks and Switches

it.

Despite the heavy debenture
conversions of early this




accompanying

STOCKHOLDERS

Corporation at December 31,

for the

...

*

Creeping Telephone

of

317,239

PROVISION FOR INCOME TAXES:

ben¬

persist¬

,

(after

deducting provision of $313,972 for depreciation). .$ 9,291,906

Excess

efits before it

charges.

as

Net
as

Normal

come

included

$ 8,974,667

operations

Profit before provision for income taxes

the

in

have been examined by Arthur

31,558,831

...

OTHER INCOME, less miscellaneous

associated metal firms, Vana¬

lybdenum relaxed after a bit
of a runup probably traceable
to all the brokerage attention
to "atomic energy" issues and
uranium producers.
It seems
that
atomic energy has to

The financial condition of the
and the results of its operations

$40,533,498

I

dium

Corp. and Climax Mo¬

31, 1953

GROSS SALES, less returns, allowances and discounts

ADMINISTRATIVE EXPENSES

despite dour expectations,
continued the same payment

PRESIDENT'S REPORT TO

PROFIT

FOR THE YEAR ENDED DECEMBER

■IBRKCS&SfRAnOW]-

been

changed to Burns, Collier & Com¬

with King Mer¬

the

declines

stock

the

Se¬

Inc., Commerce Ex¬

Chronicle)

Financial

Mo.

Mid-Continent

of

name

curities

Collier Co.

CITY, Okla.—The

■[Bwrocs&SfRAnoN].

likely it is that the com¬
will be able to pay in

with

Chronicle)

Exchange house points
out, somewhat ironically, the
more

hig

investment business in Pasa¬

one

more

Harry

associated

Dempsey-Tegeler & Co. Mr.

Laufman

to

Calif. —C.

LOS ANGELES, Calif.—Charles

Gaffney has been added to the

regular in the last four years,
are unlikely to be maintained.
As

Laufman
with

Sutro Adds to Staff

ANGELES, Calif. —Edwin

staff of Lester,

necessarily at any
with those of the

coincide

to

PASADENA,

own

Lester, Ryons Adds

this

in

Dempsey-Tegeler Co.
(Special

L.

previously with Boulevard.

(Special to The Financial Chronicle)

P.

expressed

C. H. Laufman Joins

Chronicle)

Hill Richards & Co.

reach the half mil¬

views

Financial

LOS

son

asso¬

(Special

their try¬ lion mark.

brokers,

become

Morgan & Co.

In fact, the
report of General Motors,

the heavier groups

threat

has

Mr. Ellsworth

public ownership

also among shareholders, showed that GM

were

(Special to The

its closest rival in number of

*

*

*

With Calif* Investors

Chronicle)

ANGELES, Calif.—Thomas

last

from

Financial

ANGELES, Calif.—Samp¬
Dietz, Jack D. Naliboff,
Sherman F. Smith,
and Martin
ciated with the First California
Turner have joined the staff of
Company, 647 South Spring Street. California Investors, 3924 Wilshire

support, but this appeared to
be more from the fact that the total of 1,265,000 far and away
traders

The

Ellsworth

T.

new

a

to

17

18

The Commercial and Financial Chronicle

(894)

Most

of

friends among

our

await the .development of areas of

tractors

with

agreement

the

nations have had little opportun¬

Eisenhowei Urges Wider

Atomic

Energy

as

result of

a

dis¬

our

ity to inform themselves on the cussions with other nations.
employment of atomic weapons.
In a related area, present law
Under present law, we cannot.give
prevents United States citizens or

111

special

the Atomic Energy

to

ments

to Congress,

message

limited information

the

on

use

he recommends specific amend¬

peaceful
D.

Feb.

such

gress

he

But

delivered to

Con¬

certain

atomic

of

A wide
ons

restrictions

of atomic energy

use

vate

possibilities of

ture— have

clear

by pri¬

weapon

President's mes¬

structing

of strengthen¬
ing the defense and economy of
of the free

of atomic

use

en¬

from atomic energy sources
very remote; today, it is

power

Energy Act of

seemed

These

1946.

was

for ship propulsion will ul¬
timately become widespread.
In
1946,
too,
economic
industrial

Atomic

the

in des¬

ergy

of

amendments
to

a

certain that the

approve

number

a

nonexistent eight

—

questionable in
1946; three weeks ago the launch¬
ing of the U.S.S. Nautilus made it

world, I recommend that the Con¬
gress

The thermonu¬

all atomic weap¬
practicability of con¬
submarine with atomic

propulsion

purpose

the United States and

con¬

power

The

ons.

follows:

For the

be

to

distant fu¬

a

ago—today dwarfs

years

tructive
sage

1946

achieved

today

armed forces.

our

enterprise.

The text of the

in

ventional status in the arsenals of

time, remove
the development

same

on

variety of atomic weap¬

considered

—

mere

use

that

and

weapons,

would, at the
and

wider

a

debit

sets.

amend¬

Act of 1946, that would per¬

mit the nation's allies

that

counterbalance

amendments

clearly in sight—largely a matter
of further research and develop¬

would

ment,

accom¬

plish this purp o s e,
with

conditions

enterprise can flourish.
Obviously, such developments
as these within so short a
period

secur¬

proper

ity safeguards,
through
the
following

should- have
fluence

means:

wid¬

ened coopera¬

with

tion

allies

our

energy

improved
procedures
and dissemination
of atomic energy information; and,
Third, encouragement of broad¬
ened participation in the develop¬
ment of peacetime uses of atomic
energy in the United States.
Nuclear

atomic

military

fields,

Progress

the proper exr
nuclear energy for

of

of the American

benefit

the

service

An

energy

our

cities

of

erasure

of men,

the

and

hope

use

lied
In

in

the

defense

been

progress

law.

have

than

sive

a

advances

mates.

when

in

seen

atomic

the

Cooperation
In

of

defense

have

on

es¬

far

United States could
its monopoly in atomic
for an appreciable time

quickly

proved

monopoly
only three

years

—was

Atomic

after




United

States such tactical information
is essential to the

defense plans
of

personnel

"restricted
in

later

data"

definition

needed

to

flexibility

in

information

concerning

of

of

atomic

recommend

approve

a

that

number

With

Other

of

Nations

the growth
cooperation for

era,

the

free

world

is

heartening development

on
the processing of
materials, reactor de¬

raw

search

and

fied

should

re^

used

to

In
uses

amendments

with

required for ef¬

are

United

States

cooperation

friendly nations. Such

requires the exchange of

certain

"restricted

industrial

data"

applications

sionable

materials

adequate

for

search

that

in

authorize

to

-

common

warning

evitable.

be

such

co-

operation. Such amendements
should prescribe that before the
conclusion
of any
arrangements
for the transfer of fissionable
terial

to

its

nation, assur¬
provided against

be

.

that

swift

the

of

•

of sensitivity of "re¬

stricted data." The

requirements apply to any type of
"restricted

cance,

the

access

or

The

defense consti¬

to

potential
punishment

any

his

and

These

our

his

defeat

in¬

powerful^ influ¬

for peace must

strong and convincing

be made
as

as

possible.

atomic

of

heart

involves

nations

risks

guided by such con¬
The.sensitivity and
importance of the data, the spe¬
uses

will

as:

which the

to

informa¬

the

security

be

put,

standards of the

co-operating na¬
tion, its role in the common de¬

fort.

the

free

the

world, and the

mutual

security

ef¬

information

on

general

defense

planning and the employment of
conventional
the

weapons

information

well

as

could

be

as

that

needed

vestigation

rec¬

ommendations.
are

to seek

a

apart

Commission

Energy

permitted

to

outlined in
General

United

Nations

Consideration
islation

my

,

address before

Assembly
of

last

of

the

December.

additional

leg¬
which may be needed to

implement

that

proposal "should

se¬

relates

data"

Restricted

of

large

body

under

of

"re¬
law

present

primarily to military utili¬
of
atomic
weapons.
The

zation

responsibility

control

the

for

much of this weapons

of

information

logically should rest with the De¬
partment

of

with

Commission.

the

Defense

ministrative

produced

security
the

would

removal

of

the

the

under

other

in¬

weapons

"restricted

the

by the

in

Defense

of
by

this

data" category and

protection

are

eliminated

be

from

ad¬

that

system

dual

a

than

Many

difficulties

by

formation

rather

its subsequent
.

Department of

same

and

manner

safeguards

same

as

military secrets.

This

method

sible

under

stricted
from

handling

is

pos¬

"Re¬

removed

be

can

"restricted

statutory

category

not

law.

present

data"

the

data"

of

information

weapons

only

declassi¬

by

adequate

that

the

publication of such data

will be

the

of

reliance

especially

ing of private participation in the
development

-

While

private

such

require

ployees

not

participants

to

access

who

"restricted

technology, full
of all .their em¬

will

have

such

not

of

have

warranted

the

are

much

data

ac¬

because

involved

will

significant security im¬

portance. Moreover, such investi¬

gations

would

the desired

both to

impede

and

dis¬

participation

access

tive

"restricted

the

Commission

to

sensi¬

more

data"

is

must,

involved,
of

course,

require full investigations.
Another

security

relates

Department
and

to

the

of

to

Defense

to

clearance
of'

agencies

personnel" of

con¬

I

recom¬

data?'

be

information

exclude

concerning the utilization of
atomic

weapons,

as

from information

on

distinguished
their theory,

design and manufacture.
(2)

In

which

addition

falls

utilization

information

to

wholly

within

the

there is in¬
formation which concerns prima¬
rily the utilization of weapons
but

category,

which

pertains also

to

their

design and manufacture. In order
to

avoid

ginal
tion

difficulties

zone,

which

I

in

this

mar¬

recommend legisla¬

also

would

authorize

removal of such information from

This
the

"restricted
would

be

Commission

ment of Defense

that it relates

personnel

user,

"restricted

of

amended

unnecessarily costly
the
government and to indus-"

try. Where

problem

the

power;

reactor

on

investigations
cess

atomic

of

of

mend, therefore, that the statutory
definition

is

amendment

pertinent to the proposed broaden¬

will

the

Department of Defense.

which

in
se¬

curity

measures

not

standard

ac¬

data"

is
lies

remedy

the

upon

the

security.

obviously

The

the

permitted.

This

remedy.

affect

and

under

required

"restricted

to

cess

scope

adversely

defense

Declassification

be

should
the

relate

not

significance of the

the

to

new

co-opera¬

tion in the field of atomic energy

the

lati¬

and would be

The recommendations

as

for

courage

exchanged pursuant to these

who

.

under

data"

Such considerations apply to

and

military

present law to deter-, fication, upon a determination by
Atomic .Energy
mine the extent of personnel in¬ the
Commission

tude

can

the exchange or communication of

to

Energy

sufficient

lacks

Commission

in¬

weapons

"Atomic

The

formation.

who need such

work

proper

A

common

be

siderations

to

security signifi¬
by a scientist to

marginal

(1)

stricted

tion laborer to "restricted data" of

only

investigation

of

be

by the unskilled construc¬

Act

fense

it-

whether

data,"

to the United States. In each case,

tion

clearance

same

its

authorize

Definition

Data.

investigations required by present
law are unnecessary. The Atomic

that must be weighed, in each in¬

cific

se¬

respects. The Act does not recog¬
nize degrees

the

would

other

must

to

of

clearances

their

certain information

Sharing

we

relating

personnel
improvement ' in
several

curity
need

Act

to

programs

in

security. Many costly background

recipient

the

for military purposes.
with

sions

The provi¬

Security.

Energy Commis¬

engaged in Department of

The
_

personnel security clearances.

Personnel

and

curity clearances.

requirements

by

time

recommend

to "restricted data" to per¬

access

declassification of

and

data,

un¬

contractors and licensees to afford

include

to

of

causes

therefore

enabled

nation

by

use

ma¬

foreign

a

must

ances

such

re¬

Act

be

Atomic

areas

in

expense

I

that the Atomic
sion

in

and

co¬

Depart¬

the

and

interest

money.

is now es¬
by
law.,
"Restricted
protected in the law by

are

access

and

•

Energy

International

ences

amounts

industrial

Atomic

amended

atomic

I therefore recommend

use.

the

the

on

of

also the release of fis¬

energy and

proposal

be

co-op¬

eration

Defense

Commission

necessary

significance,

semination and

for

the development of peaceful
for atomic energy, additional

for

will

be better

may

of

the

mutual

special espionage provisions, pro¬
visions relating to the control, dis¬

national advantage.

our

denied
by AEC

must

between

data

data"

that the authority to com¬

so

be

possess

as

in

to "restricted data"

sonnel

defined

so

present

engaged

personnel impedes

ment

accordance

These

be

now

personnel

Energy

clear

virtually all atomic energy data of

par¬

contractor

A special category of "restricted

data,"

be¬

and

operation

the

modi¬

development.

limitations

for¬

Information

tablished

my

a

-.

data"

The

programs.

Defense

„,

the

commu¬

contractors

clearances

access

security.'

.

"restricted

of

AEC

that

tary

Protection of Atomic Energy

able

related

it

for

military programs who have mili¬

amend¬
that

proposed

in

only

security

and

in

widespread

Services,

ticipants in related Department of

authority granted must be ex¬

velopment, production of fission¬
materials,

tween

Armed

increases

nication

is

permit

make

should

fense and

a

basis

binding ourselves and

aggressor

in

*

cedure for the communicaation of

atomic

increasingly
the

necessity

with
conditions prescribed by the Pres¬
ident to protect the common de¬

specific, defense, need,
existing in 1951, the Congress ap¬
proved a carefully limited pro¬
.

these

of

ercised

nations

<

To meet

the

exchange

weapons..

All

.

ments

also

such

use

applications of atomic energy

within

Energy Commission also
to authorize such participation.

administra¬

the

with

the

will

As

Atomic

recommended

this, message

contribute

of

the

the Civil Service Com¬

or

become

proposed

The

would

amendment

and to the training
atomic warfare.

to

work

firms in

AE,C,

had

investigations

on

mission.

Defense

or

have

by the Federal Bureau of Investi¬
gation

fact

countries.

"restricted.

same

they

clearance, based

arrangements

eign

precluded by law>

the

until

data"

of

amendment

are

to

access -

also to the above amend¬

citizens

for

Amendments

tive

yet, contractors of the

as

development of

from

tute

the

Energy Act-was-enacted.

defense

the world political scene.

friends in

invalid.

disappeared

the

with

This

pro¬

Depart¬
security regula¬

from granting the same personnel

for authorized
exchanges of
information with
friendly foreign governments may
involve participation by American

therefore, that authority
be provided to exchange with na¬
tions
participating in defensive

"re¬

by the

thereafter

are

Commission

information

urge,

arrangments

disclosed

so

Defense

tions. And

concerning the exchange of
with other countries,

ment

the

to

as

I

of

ment

authorize

to

determinations

nature.

related

era.

ments

tthe

weapons

geared

gression and, where necessary, to
defeat the aggressor.
The agree¬

popular assumption of 1946

maintain

the

United States is allied with many
friends in measures to deter ag¬

Energy

been

I

atomic

most

outdistanced.

—that

this

the

the Atomic

Nation's

the

international

the

written,

be

must

this

free

defense

contributions it has made and

ex¬

was

of

Act.

progressive
esti¬
The anticipations of 1946,

tablished and

it

effective

atomic facts of this

make

succes¬

was

revisions

of amendments to the Atomic En¬

even

government.policy

One

to

Congress

ergy

technological
energy

Energy

spirit and in considera¬

wdlfare,

and

Genera¬

Each

future

In its

portance

compressed into

decade.

has

year

ceeding

been

unit,

the

for

order
an

stance, against the net advantages

of the Atomic

1

tion of matters of the utmost im¬

tions of normal scientific develop¬
ment

broadened

for

need

in' nuclear

technology.

and

science

more

Act of 1946 wisely recognizes the

1946, however, there has

great

defense.

rapidly and their
widely
realized

more

Section

quate to the Nation's needs.
Since

common

the free world.

is still ade¬

main

the

cooperation
through
greater participation by American
industry. By enhancing our mili¬
tary effectiveness, we strengthen
our efforts to deter aggression; by
enlarging opportunities for peace¬
time development, we accelerate
our own progress and strengthen

.suited to conditions then existing,

Act

on

with friendly nations and

the Atqmic
written.
Well

was

if

increased

respect to peaceful applications

through

this atmosphere,

Act

in

us

benefits

mass

required that this
monopoly be protected and pro¬
longed by the most stringent se¬
curity safeguards.
,
In

be

be imreadily to nations al¬

more

with

veloped

and world peace

Energy

will

to

atomic

of atomic energy, these can be de¬

oly of atomic weapons was of cru¬
cial
importance in international
common

respect
our

of atomic weapons can

oarted

Moreover, this Nation's monop¬

The

In

considerations,

effectiveness

ren.

relations.

be

fective

certain limited information

and child¬

women,

friends throughout

conclusions:

defense

potential for good. In the minds
of most people this new energy
was
equated
with
the
atomic
bomb, and the bomb spelled the
death

our

objective assessment of these
factors leads clearly'to

these

but its awesome
overshadowed its

goal,

our

then

even

was

destructiveness

1949,

peo¬

varied

the

by

In

to

present conditions,

these

Furthermore,

Commission

Energy Commission to

future

make

municate information, adjusted to

1954.

ploitation

and elemental source

new

warfare.

enabled

be

the Atomic

and, therefore, better prepared to
meet
the
contingency
of
such
world

The

tected in accordance with

States,

should

warfare

ities of

had been
United States
the year before.
To harness its
power in peaceful and productive

That

are

restrictions impede

the threshold of the atomic

tremendous

Act

in

the free world.

A

less

ap¬

atomic

of

inconsistent with the nuclear real¬

Atomic En¬
written, the world

was

unlocked

the

of

energy

ple and of

was on

and

limited

atomic

of
and

Act

era.

monopoly

and

weapons

plication
civilian

1946, when the

ergy

of

American

the

as

the control

problems

Defense.

of

own

information

restrictions,

based'on such actual facts of 1946

Second,

In

But in a

statutory

Many

matters;
for

en¬

tions of 1946.

atomic

certain

in

in¬

the Nation's atomic

on

profound

a

number of
respects, our atomic energy law
is still designed to fit the condi¬

Eisenhower

Pres.

had

policy.

ergy

First,

establishment of
in which the spirit of
the

and

partment

except upon de¬
termination by the President that

should become better informed in

*■

to

have

as

stricted data"

•

•

data"

personnel

indirectly in the production
of fissionable material outside the
or

the
proposed
activity will not
security will increase
■adversely affect the common de¬
as our allies gain information con¬
fense and security. Matters that
cerning the use of and the defense have arisen under this
provision
against atomic weapons. Some of have been
ordinary business or
our
allies, in fact, are now pro¬ commercial activities which
ducing fissionable materials or nevertheless fall within the broad
weapons, supporting effective
statutory prohibition because they
atomic energy research and de¬
might contribute in some degree,
veloping peacetime uses for
however, minor, to foreign atomic
atomic power.
But all of them
energy programs. The President
the

"restricted

these

United

planning, and to their
against atomic at¬

'

Our

atomic ledger there have
mighty increases in our as¬

been

ments be made to the Atomic En¬
ergy

tack.

the

on

special message in which

a

recommended

to

participation -ly

of

ageneiesj The

Commission may

security clearances from the De¬

corporations from engaging direct-

defense

own

for

energy

essen¬

in combined military op-,

us

erations and

purposes.

Dwight

President

17,

Eisenhower

of atomic

use

information

tactical

with

Act which would permit certain
of atomic weapons to our allies,

and would enable wider research and

On

them

tial to their effective

those

disclose

now

.

Use of Atomic Energy

Thursday, February 25, 1954

...

data"
done

and

category.
only

the

when

Depart¬

jointly determine

primarily to miltary

utilization of atomic weapons and
that

it

can

be

adequately

safe-

"•

Number 5302

Volume 179

Act

Espionage

applicable law.

other

and

the

under

formation

The

...

(3) Consistent with these
changes, I recommend that the
Department of Defense join

with

Energy Commission
declassification of "re¬
data" which relate pri¬

Atomic

the
in

any

stricted

military utilization of
and which can be
published
without
endangering
the national security. Thus, the
marily

to

atomic weapons

Department of Defense will have

appropriate voice in the pro¬
and
declassification
of

an

tection

such "restricted data" and the re¬

sponsibilities
will

respect to

with

clarified

be

Commission

the

of

all other "restricted data."
Domestic Development of

What

Atomic

a hope and a
1946—the benefi¬
atomic energy in hu¬

goal in

cent

use

man

service—can soon

ity.

of

Before

be a real¬

scientists and en¬

our

gineers lie rich possibilities in the
harnessing of atomic power. The
Federal Government can pioneer
in

its

well

as

utilization

as

their

fission¬

of

material, while continuing
for a limited period the authority
to require a patent owner to li¬
others

to

use

essential to the peacetime
tions

atomic

of

But, in

development.

this

undertaking, the enterprise, initi¬
ative and competitive spirit of in¬

utilization

Atomic

the

with

our

Energy

number of pri¬
corporations are now con¬
ducting studies, largely at their
own
expense, of the various re¬
actor types which might be de¬
veloped to produce economic
power. There are indications that
they would increase their efforts
Significantly if the way were open
for private investment in such re¬
a

vate

In

actors.

the

amending

law

to

permit such investment, care must
be taken to encourage the devel¬

of

opment
a

manner

this
as

atomic

ations

industry

new

nearly

in

normal

as

possible, with careful regulation
protect the national security
and the public health and safety.
essential

is

that

and

been

Goodbody

to

&

Mich.

—

William

now

Lynch, Pierce,

Fenner

staff

J.

with Merrill

O'Donoghue is

Penobscot

Co.,

-

(8pecial to The Financial Chronicle),

of

the

added

)

DETROIT,

DETROIT, Mich.—John A. Zinn
has

i

& Beane,

Congress and Shelby Streets.

Building.

energy

mechanism to

assure

that the lim¬

companies, which
government, contractors now

ited number of
as

have

monopoly

patent

a

Increased sales

the program, can¬

to

access

build

not

I hope that
participation in the development
will have broad¬
ened sufficiently in the next five

ing to enter the field.

reports

to remove the need for such
provisions.
In order to encourage the great¬

years

est possible progress in domestic
application of atomic energy, flex¬
ibility is necessary in licensing
and regulatory provisions of the
legislation. Until further experi¬

this

with

ence

industry has

new

been

Just

arise.

to

Atomic Energy Act
its

the

as

recognized by

Net income

terms that it was experi¬

own

in

mental

respects,

of

number

a

this program

proceed that this new industry
develop
self-reliance
and
self-sufficiency.
The
creation
of opportunities
for broadened industrial partici¬
so

new caustic-chlorine
plant at
Montague, Michigan, additional
caustic-chlorine and anhydrous am¬
monia capacity at Tacoma, Washing¬
ton, and enlarged facilities at Niag¬
cover

6% from 1952 and the second
highest in Hooker's history.

up

basic

crease

$3,378,300,

was

in¬

an

of 11.5%.

these amendments will be sub¬

so

change

ject to continuing future

Substantial plant expansion

and refinement.

markets.

the

to

revisions

m

Department has been

expanded
to take fullest
advantage of increased
capacity. Research Department has
been enlarged to provide new prod¬
ucts for
steady future growth.

operations,

here and

development
The

Falls.

Sales

preparation for broader future
opens new markets and
offers greater opportunity in present

twentieth century will
turn in large measure upon the
nature and the pace of atomic en¬
the

abroad.

a two-year program

in

The destiny of all nations dur¬

ergy

ara

in 1953 vir¬

•

tually completes

sis

if

ing

capital expenditures, $17,100,000,

Year's

reached $38,693,000,

Sales during 1953

to

Atomic Energy Act

herein recom¬
help make it possible
atomic energy de¬

mended will

American

for

velopment, public and private, to

RESULTS OF OPERATIONS

play a full and effective part in
leading mankind into a new era
of

progress

and peace.

"t \

•

.

.

for the
.

DWIGHT D. EISENHOWER

White

The

Feb.

Plus:

1953

1952

$38,693,000

$36,523,500

ended TSov. 30, 1953

products and

.'

services

House,

1954.

17,

year

Net sales of chemical

to

It

;

a

tain

within

groups

efficiency and prog¬
ress at the least cost to the public.
Industry's interest in this field
Is already evident. In collabora¬
tion

East

Chronicle)

broader base, consider¬
of fairness require some

acquires

the greatest

Commission,

industrial

Financial

The

participation in

of

free economy are needed to assure

and

the

to

applica¬

gained, it would be unwise
try to anticipate by law all of
the many problems that are cer¬

dividuals

(Special

energy.

Until industrial
the

between

With Merrill Lynch Co.

Goodbody Adds to Staff

the Pacific Northwest."

invention

an

"giving the people of
a
connection between
great peninsulas and

two

giving the United States and Canada
a
transcontinental highway

able

cense

of

Michigan

of atomic power

only

was

road

principally by expanding the area
in which private patents can be
obtained to include the production

19

which would exclude others desir¬

Enerry

distant

(895)

Commercial and Financial Chronicle

Other income from interest,

r

773,500

587,300

$39,466,500

$37,110,800

dividends, license, etc

*

will

pation

permit the Govern¬

may

its

reduce

to

ment

research

and

reactor

own

development

Equals: Total Income

Mackinac Bridge

Our Costs

Less:

Bond

Financing Completed

after

Wages, salaries, payroll costs .. .$ 9,737,200
Raw materials, power, fuel,
transportation, local and state •.
'
taxes, other costs
19,389,000

Agency receives check for $96,-

private industrial activity is well
established.
For the present, in
addition to contributing toward

400,033 at closing ceremonies in
New York.

Depreciation
equipment

the advancement of power reactor

Formal

technology, the Government will

in the
military

continue to speed progress

technology

related

propulsion reactors.

of

continue, and industry should

by

be

the enactment of

appropriate legislation to assume
a
substantially more significant
role.
To this end, I recommend
amendments to the Atomic En¬
(1)

Relax statutory restrictions

against ownership or lease of fis¬
sionable material and of facilities
capable

of

producing fissionable

material.

(2) Permit private manufacture,
ownership and operation of atomic
reactors
and
related
activities,

subject

to

necessary

safeguards

licensing systems ad¬
ministered by the Atomic Energy
and

under

Commission.

(3)
to

(Commission

minimum safety and

security regulations to govern the
use

and

possession of fissionable

material.

Government

in

making

them

available.
•-

patent pro¬
visions of the Atomic Energy Act,
(5)

$28,245,100
$ 8,865,700

3,939,600

5,835,000
$ 3,030,700

2,524,300

Cash Dividends

Less:

7,317,900

2,482,900

$ 3,378,300

Leaves: Net Profit

for

M.

I

Federal Income Taxes

Less:

I
15,350,800

3,022,400

Leaves: Profit Before Income Taxes .$

a

$10,411,400

2,155,400

Brown,

Leaves: Retained

represented proceeds from
the sale of Authority bonds to a

for

Use

in

Business$

854,000

$

875,300

check

FINANCIAL POSITION—Fiscal Year End

of underwriters comprising
Securities Corp.; Allen &

group

$20,689,100

Current Assets

and
Inc.
In

Nicolaus

Stifel,
from

&

the

December

Co.,
purchased

bonds, comprising $7.9,800,000 se¬
A 4%
bonds due 1994 and

series B 5Vi%

6.58 to 1

$51,279,700

23,823,500

23,595,100

$27,684,600

bonds

series

re-offered

were

1

to

$38,399,200

Total Liabilities

Less:

bonds

The

1994.

due

5.41

Total Assets

ries

$20,050,400

$62,222,700

Current Ratio

group

the Authority $99,800,000 of

$20,000,000

..

3,595,100

$16,865,600

Co.; A. C. Allyn and Co., Inc.,

Leaves: Working Capital

$23,645,500

3,823,500

Current Liabilities

Less:

A

publicly

on

Leaves: Net Worth

Jan.

public offering of the se¬
ries B bonds is contemplated at
15;

no

this time.

which is expected
traffic on Nov. 1,
1957, will be the sole vehicular
crossing of the Straits of Macki¬
nac,
which separate the Upper
to

bridge,

ANNUAL REPORT,

be opened to

will

be

sent

Secretary,
31

upon

Hooker

including 10-year summary,

request.

Please write to the

Electrochemical

Company,

Forty-seventh Street, Niagara Falls, New York.

and Lower Peninsulas of the State

Permit the Commission to
supply licensees special materials
.and services needed in the initial
stages of the
new
industry at
.prices estimated to compensate
the
Government adequately for
the value of the materials and
'services and the expenses to the
(4)

•

handed

,

buildings,

on

$32,148,600

in

$96,400,033.33 to Pren¬
Chairman of the
Mackinac Bridge Authority.
The
check

tiss

The

Authorize the

establish

Securities Corp.,

Union

Union

Act which would:

ergy

the Straits of Mackinac,

across

The present Michigan, took-place Feb. 17 when
Joseph
H.
King,
President of

complementary efforts of industry
and
Government will therefore
encouraged

fi¬

bridge

proposed

the

of

nancing

the

of

completion

Doing Business

of

including:

Liberalize the




of

Michigan.

Mackinac
ninsula

point
a

It will extend from

City in the Lower Pe¬

across

near

St.

the

Straits

Ignace,

to

a

Michigan,

distance of nearly five miles.
At

the

concluding

held at the
New

York

Bankers Trust Co.

in,.

HOOKER

ELECTROCHEMICAL

COMPANY

City, Mr. Brown read

congratulatory letter from Gov.
G. Mennen Williams of Michigan.
a

Gov.

W77Z
cX

ceremonies,

Williams

nancing marks

said
a

that

the

NIAGARA FALLS • TACOMA •

MONTAGUE, MICH. • NEW YORK • CHICAGO • LOS

ANGELES
4-171

fi¬

milestone in the

c

20

The Commercial and Financial Chronicle

(896)

lively demand for

Business Will Be Better

Again!

goods

Chicago, 111.

securities

About this time last year I was
to talk on the prospects of

asked

business

for

the market

into
g

1953,

was

that

At

time

o

u

earnings
nicely

To

the

mild

new

be

that

trial output

of

be

that

13

and

in

tion
w o u

1 d

had

prices

been

had

other

gradually slipping—so
price indices—since
mid-1951, but Stalin was dead and
all appeared

right with the world,

at least the general feeling was
that the Russians would do noth¬

or

ing rash but would try to consoli¬
date their home position before
venturing much farther in world
matters.

I was very bullish as to
the future of the country. My own

forecast

the

that

was

Dow

Jones

Averages might quite probably be
at

about

the

the

end

300 in

of

kets

325-330

level

before

1953, and would

cross

mid-summer.

*

"Fortune"

issue

National

down

that

3%

nature

This

crease.

would

about

erage

about

or

at the

20%

higher

Statistical

December,

dicted
the

decline

a

1953

of

pre-

Then

for

his

prisoners.

You

happened
of

after

day

every

exchange of injured
all know what

an

the

that;

daily

does

the

from

emotions

headlines

current

dictions

Price is arrived

agreeing

front

press;

page

of

For

business

cancellations; critical analyses,
articles, feature stories in the ma¬
jor business magazines; opinions,

and

predictions, sober warnings

that

to

as

I

should

done

"technical

a

this

was

correction."

time

a

upward

of

after

.Surely

confusion

and

uncertainty.
The

of

both

of

the

best

is the
hard
of

are

of

coming in

now

19^3—certainly

one
business in

for

years

history of this country.
indeed

the

to

spot

industrial

It's

segment

any

community that

did not set up a new
high for vol¬
ume
or
unit
production or net
after taxes for 1953.

Tonight-I
with

the

placing

am

myself
looks with

that

group

marshalling

The

trail

be

industries

nearly

industrial
months

also
at

of

account

months.
on

itself

—and

we

good

a

the

next

even

six

out

go

all-out,
hopeful

for

1952

as

I

a

shooting
that

1952

was

for business.

year

look

not

than

even

all look back

truly good

do

in

Yes, I will

perhaps better
a

give

limb and say I believe 1954
be almost as good as 1953—

a

will

t

to

on

renewal

of

and

war,

an

am

real

a

step toward
peace can be negotiated with the
Communist forces.
I have faith
in

the

decency of
of

power

men

sincere

a

and

the

to

get

urge

along in this world.
All

kinds

found
some
are

in

writers
now

*From
fore
on

the

111.,

we

some

units

learn

can

be

Frotn

that there

address

2,400,000

unem¬

Adult

Education

Money

Feb.

by. Mr.

2,

Kimball be¬
Council class

Management.

1954.




Free-

the

in

came

the

depression

with

point

to

and

chemical

industry—the

of

the

synthet¬

the

last

made available.

Business

tailed

has

inventories

six months.

drastically cur¬
during the last

This is a very favor¬
For it would indicate

that by the time the slowndown in

production of
curs

there

some

will

war

goods

probably

oc¬

be

a

I

castings,

Serious

will

adjustments

be

by SOme companies such as

those

that have

mine

been working on

sweepers,

I

june

have

I

de-

typical,

and

The

quite

0f my intimate

knowledge of five

in

finance

field.

backed

by the intimate

oper-

up

the

ating data and statistics of another
dozen in this field.
These companies cover all of the major trading

195q to

nies

prompted to say that because

am

find

i

centers of

the United

States,

current

some

trouble

with

pile

leporting

company

months

the

31®

ehding Dec.
1953, is still in excellent shape.
It is true that it is not too difficult
to
find
companies
with
much
greater losses.
These
companies that are

usually

are

path will always be rocky until
they obtain the necessary skills;
or which are sectional in operation, or those with such large volume

that

they

bas

largely satisfied its stockpiling
and the production
tbat was being bought by governrequirements
has

juent

fjQ^y

into

time

had

the

jndustry.

large

than offset

more

two

and

Actually,

group.

bearish than
recall

that

Korean
stock

no

war

the

War

Copper,

rubber

and

wool,

djrpct result of the Korean War

_

bTck

settling
to a more
competitive level.

are

normal

and

Marginal operations are going
to b* ^ "T well-being is

°pnI?nt^JUA«Smn^
an!?
rlfatP

1v

raw

basic ^comm^

*1^

nl^HnrHnn
,.m^r
prorf,?Minn

nr;

«

wi 1

go down.

™lU

declmf:

Production costs

should

^eraij"gT a *°nfl 5fU1p™ nv
®he instances' where
inrfstrv suffers business -wilefrom
/h ** i
i

a

r

termination o

war

tu

™nc

war contracts, the

them by volume and low costs of

^

acquisition and service.

%tbe sTnce {h^°win noT

You

have

all

read

GMAC,

the

giant

in

CIT

of

how

this

field,

Corp^ and Associates InvestSouth

Bend

have

been

been'

o(

total

1954, at

a

rate but

major

outnut

have

in

the

and

will

no^h^ welghed ^y hea^y
javerages.

/ihave

money

business foi

?nfluenCe

industrial

£0^

run

across

only

businessmen who

a

very

curtail—

are

expansion programs for 1954

mg

half

typified by

are

one

weli

know

who

Korea

^ave no-fears for the prosperity of

mated $500,000 net after taxes for

in

™e

a u

to

industry.

Certainly,

1953^

tjons

be

a

there will be hard times for some
—that s competition.
That s the
American way of business life, but
American public, in this kind

and

a

°b

the

three

is

more

You

may

of

the

down

the

has

achieved

the

highest standard of living
world has ever known.

automobile industry

*or

.

capital

on

current

on

esti-

an

opera-

of

contracts)

profits

reduction

a

he

estimates,

elimination of
about

in

war

revises

now

excess

$275,000.

his

with

even

the

profits taxes,
Nevertheless,

within the last 30 days he has let
contracts
on
the
whole
of the

^at

a

Pany's

He is confident

program.

the

seen

next

90

days

reorientation

operations

will

have

his

com-

of

and

that

his

General Motors plans to spend saies staff will have brought in
billion in plant ex- more than enough orders for new
pansion in 1954 and 1955.
The products—products that have been
impact of that program alone is lying on the shelf figuratively
more than $1

something to

Grey

iron

category.

conjure

with.

speaking

during

in

<

points.
«

Think of

based

^

26

round

Based

you are as aware as I of original

uead of General Motors.

$300,000

a

(down from last year's peak

because

the

economy,

tradition

good

0f them

1954

to

news

Most

for

material

news.

*

lead,

tin and
all have
appreciable price increases as

2ine,

directors

spending

beginning
a

to

outlay in

will

knocked

indices

which

committees and trustees handling

and

very

a

in

regular channels of

these millions of dollars of capital

business

a

absorb

can

credit losses and

prob-

that the government

now

newcomers

to the industry whose management is not skilled and whose

compa-

transitional

face

may

lems too

but

a

electronic

producing for government stock-

sessions.
They have risen to a
level higher than for several
But

*

produce for war.

the

Wm have their troubles, too.
companies that have been

had

years.

of

Some

lepos—

foundries

are

by

m0nths—to

a
feast or famine facilities.
The feast usually comes that the

utilize
It

was

the

last

fully the

for this purpose

construction

new

30
new{

was

•

The

Much
the

authorized.

Automobile Industry

is

market

heard
for

of

cars

a

softness

and

with

a

slump

imminent.

last fifteen months I have

In

the

issues

under-

gated—c
products

0 m p a n

have also pledged
bank lines conforming

ratios

as

now

and

i

e s

with

end

not

for two .'companies

ness

in effect.

additional

tojthe same
This

financing—the insurance

new

company
bank bor-

He is

sorry

that the

^h"^r^egotodon acfhas! ST" ^ ^

in

that the

just job shops
with a handful of employees—will
Even
the farmers are
finding specializing in automobile finance.-unquestionably benefit over the
now
rays of
sunshine.
Farm
income Both are
negotiating with next six months by any turn the
was
at least as good
during the large insurance companies to bor- economy may take.
They have
fourth quarter of 1953 as for the row additional new money on a
no conversion problem:
They are
same quarter in
1952. It was up subordinated debenture basis. The
getting orders for castings for
1% in December i and up another commercial banks with w h i c h
peace-time products planned by
1% by mid-January — the last these finance companies do busi- •
their
normal
customers
for
the

figures have been

ma-

long.

the

categorwith

I go along with this latter

years.

written

ics, etc.

block

faced

just

scribed

*he statement made two weeks
ago at the Waldorf Astoria by the

consumer

products

automatic

g
a

forgings, and
gears—in staggering quantities,

however, largely curbed the feast
ditioners, automatic washers, tex¬ volume of credit sales in this field period.
Companies in the greytiles, shoes, clothing, paper, oil has reached alarming proportions'iron
industry that I have investiproducts

n

obtained approval of his board of

truce, and cessation
a
shooting war, business will
better than it has been during

be

were

spending in the next few months,
largely for such items as air con¬

situation

The

of

Consumer

high

fears for the future.

no
,

Per se

are

well and all

visualize

k i

one

—

one-third

that with the

*

up

m a

chines

therefore, the analyists and loan

au-

increase in the unemployed;
and
there are those who are convinced

„

holding

Detroit

called

inflationary
there

1,150,-

There

cash

in

down

in
the
open
market for anticipated expansions

with the build up of the
in

last

of

1,100,000 starts in 1953.
indices

in

cut-back

forces,

starts

rate

told of two machine tool plants in

piant president I

munitions,

decline

in

They

1950.

purchaser

in

fighting in

armed

for

the

in

little above the rate paid by the
U.S. Government. Certainly ,

that

attendant

that

two

decline

loans

being

were

market

outlook

broad

feel

of

for

to

and

Housing

1954.

the

spending

sec¬

up.

for

able factor.
an

Personal

port,

opinions
daily press.

and

steel

annual

an

the

say,

analysis of

so

two

who

end

indus-

picked

time for which

of

the

total

1953.

the

into

those

and

is

of

accounted

the

divide

termination

predict

are

production

demand is

going

ies:

re¬

a

basis with the

ment of

serious

both

that

of

lin, I believe the American
is

what

They

These

half

000

omy

that

reports

for

automobiles.

solid

"When

is

business

present

thorities

do

Association

agents

quarters

axiom

market

would

picture.

production.

good. In other words, I am bullish.
Regardless of what occurs at Ber¬
econ¬

see

improvement in the first
ond

Again. I

An extremely simple

the

assume

will

versal in the downtrend in

now

will

to

National

Purchasing

I

business

safely

may

economic

of

Than It Has Been

business

are

proc-

these

And

18 months to 24 months

are on an

1 have seen it done

Business Will be Better

psychology, and thus help

sumer

confidence to the next six months.
that

pre¬

political field will
favorably affect business and con¬

have

expect

for

loans.

borrowing

the

in

buyers and

doubt—sell.

within the dictates of

can

the

instance,

any

real

Administration

conscience

the

reports

results

on

its

we

the

what it

move

be

psychology and pol¬
This being an election year

future trends; reassuring summar¬
ies of the reasons why business

again

outlook

any

equations

believe

what

regard-

less

consumer

itics.

ac-

person

depression.
imponderables in all the

The two

headlines, too, telling of contract

to

^

business
of

can

a

stoek

to

ere-

are

price of

sellers.!

produc¬

appear

the

ess

twelve

support in the

or

about the time necessary to

of3l%"°on Hquidat?onsf for*

Outlook

products

concrete facts.

not

bull-

my

fearful of the future sells

Real Depression

justification

financial pages

the

on

There
any

the

products: that you sell,
stocks is subject to

the

tion of $365 billion.

the Russian-Chinese

came

of

of

that genmarket

on

transaction

a

countless times.
offer

fund

A seller must find

before

tangible

'

No

loans, they
in just

that

the

Yesterday's "Wall Street Journal"

money

un-

buyer is willing t<? offer, or vice
versa.
And,
as
with the more

pre¬

5%

national

gross

an

this

is

securities

the seller

by

cept

Association

but

new

tools

for

readied

ac

at

1952

majority

a

as

like markets for all

be consummated.

av¬

than

buyer

a

estimate

of

for

exactly

other products.

Of 300 economists attending the
annual forecasting session of the
American

It

Securities

Markets
ated

Korea.

last

business

my

The

1953—

would

level

of

ish convlctlon-

about 2 mihnot materially in¬
1954

ob-

you

me

places, that has created

would

"Fortune"

potential

the

companies
to

pass on

superimposed
available in

data,
erally

unem¬

that

mean

re-

mills and

~

to

of information.

that

that

three
lend

They are all looking forward to
derwriter of securities makes it expanding business and increased
imperative that I gather this kind piofits.
Yes, many are having

at

would

—

the

at

would

below

and

(and they

by men in
key positions in companies with
national markets, and some of my
own
personal observations.
The

in

production

6%

ployment—now
lion

predicted

work-

again—with

up

activity

servations made to

it

magazine

continues

stock

to

I propose

to

Production

about

industrial

off about

be

1954
what

from

generally believed

was

tactones.

the

of 1953,
^mother
decline of from 5%

a

January

be

Farm

taxes.

5 %

across

will) many companies
be rushing to the mar-

soon

suiting

end

10%.'

Gross

a

in

the

at

expected

its

Kimball

C.

Paul

there
be

at the end of

1

wi

expect a
in '1954.

decline

than

to

addi¬

reduction

off less

was

would

cut

forecasters

economic

it

believe

that Jnost

say

can

and that if it

direction:

of

have not had a chance to
into production new, more

ordnance,
uniputting forms for the armed
services, food
of the for the armed
services, etc.', and
ing off inventories, that consumer purchase price.
Here, again, I the multitude of companies which
spending is holding up very well, find optimistic management with have come jnt0 existence since

who looked for the rate of indus¬

govern¬
ment

might

each

scattered

justment is merely one of

600,000

some

re-

the

firms

cloudy at the moment, indications
that the general business ad-

One
widely
followed
survey
turned up 31 out of 56 economists

Admin-

costs

I

are

professional

Republi¬
istration

highlight what

facts

prom¬

ise of the

can

other

keep

are

of

the

will

that while the business outlook is

new
applicants for relief
coming into the agencies cur¬
rently than for several weeks'past.

and

had

we

in

now

up

—

implied

is

they

efficient

country, it

are

were

holding

of

ultra-conserva-

bring

tail

fewer

d—

n

increase

low

the

the

banks do not fear for the success

manufacturing,, wholesale and

1,800,000.
But,
the experts, the current trend

say

gradually inching

higher

r

ployed—an
from

that

fact

tive insurance companies and the

as

labor' employed of these companies in 1954. Why?
and the economy active.
Because the potential volume of
The president of a large financ- car paper that is good,
backed
ing institution reported at a di- by first class individual credit
rectors, meeting last Wednesday risks, is such that if these comthat, based on a survey of some 75 panics should take but one out of

dealer reviews investment and business
conditions, and. on the basis of data presented, holds there
will be no real depression, but, on the contrary, business after
a while will be better than it has been.
Says, however, boom
has reached its peak, and a large percentage of businessmen
do not expect business in 1954 to be as good as in 1953.
Following 1954, however, after adjustments have taken place,
i
"we will enjoy a prosperity never before experienced."
Chicago

the

called consumption goods,

so

which

soft

consumer

hard goods, and

as

other

By PAUL C. KIMBALL*
Paul C. Kimball & Co.,

well

Thursday, February 25, 1954

...

1950-51

marketing

year

which

were shelved so production could
be steeped up on tanks suns
radar

equipment,

etc.

They'

are

money plus the new
benefiting from orders from
rowings—will make it possible for machine tool
manufacturers, many
these companies to about double,.
0f which have been so busy catchtheir present outstanding-loans.jng up on a war-induced backlog
I want to make a point here of of
special purpose machines that

...

A

the

...

4

\u
letter from the president of
largest bank in the Pacific
,

f

.,

,

,

W®SA ^ r.ecently received,
;eUs
that In hls area they anr
Vnci?ate emPt°yment to parallel
^°3' a record year for that area,
F/anned *°JIfe Puget Sound area
alone ln 1954 are:

$75 million
Oil.

refinery

for

Shell
-

$35 million refinery for General
Petroleum.
clft
•

f

miihnn

rPfinPrv

fnr

Wash-

million relinery tor wasn

m?*0n P™cessm2 Co.
$*

million, gypsum

plant for

Kaiser Gypsum.
$5% million .increase in the
Aluminum. Corp.
of
America's
plant in Vancouver, .Wash.

Volume 179

Number 5302

.

.

The Commercial and Financial Chronicle

.

(897)

ahead

of last year;

most machirt- .there may cutbacks from present

€. $16
million expansion of the
Boeing plant.
$20 million pipeline for natural

ery

healthy backlogs with some signif-

projected production before the
end of 1954.
This may occur in

gas.

icant increases in

the

.

-

And

facilities

new

haeuser Timber

by

and equipment producers have

machine

Weyer¬

Co., Utah Oil Re¬

for

finery Co., Carter Oil, and Union
Pacific.
There is also an impos¬

for

orders

new

tools reported;

still

are

planning

customers' demands; and
ernment bureaus report

the gov-

automotive

field

also

and

President's Tax Reforms
Favorable to Private Investment

in

electrical appliances.
Even then,
sales will be at or near all time
peaks.

businessto spend
plant and equipment to meet

men

As

-

stimulating factor to busi-

a

By GEORGE TERBORGH*
i

Director of

I see a possible cut in some
of the excise taxes as well as thebe commenced in 1954 with a total
running at an
elimination of the excess profits
kilowatt capacity of about 5,000,- rate of $353 billion per year tax.as of January 1st last.
This
against actual production for 1952 should more than offset the ex000 in the aggregate.
o-f $346 billion, and for 1953 of pected cut in defense spending. I
Forecasting Stock Market Action
$364 billion.
Indications are that also calculate that the cut in the
ing list of

the

facilities in

new power

tion's

of construction or to

process

production

services

business of

underwriting, my company per¬
attempt to project the

was.

going about

my

force must

for

be

not

quite what

large

individual

1953

will

not

or

1954

as

in

Research, Machinery and Allied Products Institute

ness,

na-

and
annual

Whether business will be

projected

now

least

the

goods

of

as

will

1954

In

income

will

tax

stimulate

Terborgh lists

tax reform proposals offered
by the Presi¬
Budget Message and the Economic Report, and
with the exception of the
proposed advancing of

dent in the
finds

that

payment dates for the corporation income
tax,
able to private investment

all are favor¬
activity. Outlines advantages of.
proposals to increase depreciation allowances and to
grant

for

rates

all

Mr.

types- of

tax credit to

a

buying when the public

a. consumer

has

had a- chance to gauge the
T
.
four months in advance of any psychological r
n s
temper of Congress and get a feel-i
fh
.
commitment.
From the time we< American public to a return to a>.ing of the direction that body is '
of
"v, . e „in?Pa
kuKinnxn
J
vestment of the
,
■
negotiate a deal to the time it is more normal business economy. / taking. r
Information that I have been JvThere may be a dip in business
offered
to
the public, we must
prPn^?n+
plan for a lapsed time of just' able to gather would indicate that in the first half of this year. This
r u d e
t
a large percentage of businessmen
about
100 days.'> When we
will not be all inclusive, but its m^ccqoex¬
J
action

market

stock

at

depend
e a c t i o

measure

the
of the

upon

taxpayers

d

.

CVSS Power terms even if there

,

private in"

on

various

tax

is no
further inflation from here out.

re-

The restriction

,

ecute

underwriting

an

1954

to be

effect will unquestionably be felt.
Any drop in business will be accompanied by an orientation and
a changing of direction which

good

as

must have reached an under¬
1953, perhaps by 5%. .Each
standing with the owners of thei of you undoubtedly has an opinion
on
this.
My opinion is that any
company
whose- stock or other*
securities are to be offered, as to drop this year, 1954, would be by
as

we

price, yield, size of the offering,
and concession to be paid for the

about

sale

of

more.

also

set

the

securities.

up

securities

projection

a

related to

as

countless

We

of

the

investments

by

must

10%

backlogs
yet

are

of

country—a better

erinS

be

to

experienced for
eration. If this

plant

worked

than it has

one

more

than

a

gen-

of plant construction and of build-

occurs, and I believe it will, we shall be set for
a period of industrial growth that

ing in general;

should definitely increase

off; there will be

for the public in the open market
as of a date 100 days in the future.

put

of

continuation

a

increase in out-

an

electrical

increase will be immediately util-

tional wealth and
values.
Following

experience, it takes that
long to permit the preparation of

ized by

legal documents, audits,
and clearance by the SEC and the

our

na-

adjustments

ufacture

The

time

lag

is

due

the

to

fact

that from

various

industry and householders,

There will be

necessary

which

energy,

of

though

increase in

an

in

specific

some

al-

shall

enjoy

fields

is necessary for us to make as
careful an analysis as possible so
that the offering will be a success.

since then
to

it

obtain

the

will

other

be

for

easy

the

Readjustments Helpful

Rukeyser maintains reduction in inventories, slowingdown in cons«mer credit and levehng-off of commercial loans
is merely analogous to voluntary loss of
weight by a fat man.

have

we

us

Concludes good times in current "dynamic normalcy" depends

houses

distribution.
Thus

far

in

the "economic

ad-

objective

customers—competitive as to justment, helpful corrections have
times-earnings ratios, yield, and been accomplished without im---

afford

not

to

spend

can¬

time

money

and effort

tempts

to sell issues, nor

and

abortive at¬

on

nairincr
pairing

thp
the

inHpv
index

of

leaders

t

consumer

materialize.
i

■

'

:•?

%

In summary,

future

for

believer

bullish

bullish

am

factor

and

where

now

am

a

a

that

believe

I

I

always

is

peace

we

we

the

on

is

war

in

a

get

a

are

may

For

a

News

Service

ing

come an

even

before

5

ary

Club

in

business

appreciable

drop

and

and

in

inter¬

a

the

more

of

costs

government itself.

My market
analysis indicates that the steps so
in that direction

far taken

elimination

of the

E.

P.

the

—

Tax, the

reduction in government spending,
the general improvement in the

business climate, the ju¬

general
dicious

use

discount

of the Federal Reserve

rate

to

curb

inflation—all

and

speculation

have

in¬

their

fluence in

for

laying the groundwork
period of sound business

a

growth.
We have been

for

enjoying

boom

a

peak.

time—nearly seven
It has probably reached its
The country as a whole

could

hardly be busier than it has

years.

In

been.

many

been limited not
the
or

supply of

lines, output has
by orders but by

raw

materials, labor,

the capacity of the plant. Stud¬

ies

of

they
new

consumers

expect

to

indicate

continue

San

a

pliances, and

in

economy

an

its

cverboomed

dition

inflatfonary

con

toward

dynamic normalcy
with
counsel of the late Paul

sage

M.

Warburg,

who

*

the

that

said

"way to avoid a

bust is to sit on

the bulge

a

during

boom."

Since last fall the American scene

has

been

economic

correcting

through a reducinventories, a cessation

maladjustments
in

tion

in the rise of

through
cial

a

loans.

consumer

new

cars

at

rate

a

as

heating,

in 1952.
and

Sales of

gas

as

for

electricity for light

.and power are some

10% to




15%

advertising

means

of extend-

has

the

in

been

as was

to

correction

to

models.

old

cutting

of

is

the

based

on

tremendous

productive capacity of the U. S.
—its ability to produce guns and
butter,, too, without any visible
evidence of approaching shortages.Good times in this new chapter
of dynamic normalcy depend on
more vigorous selling, better
merchandising and more and
better advertising effort.
In addition to inventory correction, the nation is fortunate in
now

credit and

bringing under control

sev-

Ration, and I
shall confine
myself therefore.: to those
with a direct
George Terborgh
impact on priyafo investment activity,
.In this list I include the reform

is

the

not

am

ac¬

is

much

better

to

available

on

disposed to be critical of

method

regarded

program of
as

it

chosen
as

provided

first

a

greater scope.

is, it will afford

a

it

in a
Limited

step

sub¬

yery

stantial stimulus to private invest¬
ment.
It is a constructive move

of

major importance.
Dividends

depreciation, the abatement

Credit

Here again we have a first step

mept to good instead of evil, it
*hat

oTC whSoe

i

T/

pontics' \^t ™

play

in current economic statistics. The

economic signposts

and

is comparable co the
voluntary loss of weight by a fat
shrinkage

and" should

not

be

with loss of poundage

by

jectively

weight who

the real

economic changes.
mean

that

warranted

there

a person

suffer-

ment based

provide

can

optimism.

is entitled to realistic

living

standards

of 40 million Ameri¬

durable

The public

war,
•»

tion

is

far

than

healthier
a

boom

and

income tax>. these proposals seem
to me. definitely favorable to private investmentTw0
them
are Preeminent from this standP°int, the depreciation reform and
dividends credit. In view of

or

inflation itself.

increase

equity

the

at-

investment

applaud

it

as

a

I can
sound

advance,

singling

By

out

these

two

re¬

forms I do not disparage the other

proposals enumerated earlier.

I

repeat, save for the advance in
corporation tax payment dates,
they are very much on the credit
side of the ledger from the stand-

point of private investment. While
the limited time at my disposal the program does not go as far as
these are the only ones on which I should like in certain respects,
1 shaP comment separately.
even as a starter, when due aln™r^iifinn
lowance is made for the necessity
ueprawuon
of proceeding slowly on reforms

The treatment of depreciation
for income tax purposes has long
been one of the major defects of
our revenue system.
We have
what is probably the worst tax
depreciation system of any major
industrial country in the world
Basically there are two defects

that cost substantial tax revenue,
I think it should be commended,
We should never lose sight of the
fact, however, that it is a starter,

not a terminus, to tax reform,

Arthur HI. Krensky Go.

to be remedied:
(1) Present practice enforces a
retarded writeoff system and
therefore a lagged tax-free recovof capital.

ery

Will Form in Chicago
CHICAGO, 111. — Effective
4, Arthur M. Krensky &
Co., Inc. will
be formed with

March

(2) The adherence to original
c0st as the basis for depreciation
after a period of inflation makes

offices at 141 West Jackson Boule-

unretarded recovery defi-

officers will be Arthur M. Kren-

eVen an

or

purchasing-power,

of

double-rate

a

chning-balance writeoff is

satisfactory

sonably

a

the
de-

rea-

solution

of

Since it

yard,
the

as

member corporation of
Stock Exchange,

a

New, York

sky5 Exchange member, President;
Alfred
J.
Bear, Vice-President;
and Frederick V. Devoll, Jr.,

Vice-

j

4

^

^

Presldent' Secretary and Treas-,
urer-

Mr- Krensky has recently

been active as an individual floor

"«22 broker and prior thereto was head!
'

notuin

to

c0'rrect

D'ast

{or

retar-

of Republic Investment Company,

dation8on

assets

that date.

It does nothing, more- President of Republic Investment

instaAed

fnr

t

thp

before

pffects

the future
ant

one

mate

is

that

That it is
indicated
future

an

by

esti-

historical-cost

depreciation on business a s s e t s
in

existence

will

by

$70

*A
the

fall

short

billion in purchasing-

statement

Joint

by

Mr. Terborgh

Committee

on

the

Com^'

importmy

Vice-

Inc. Mr. Devoll is executive

of

^^^n.^^^^o^tawaU

on

fear of war, unbridled infla-

should

tractiveness of

only

more

based

taxation

risk-taking.

now

un¬

appraisal of

better

families.

This

This does not
be

the social urge to

on

for upwards

significance of
should

preaching

being .Dad news, this,readjustment
of a solid
long-term growth and develop-

confused

was

tax

the exception

huiuan

misery and make capital out of

man

from

optional

the retardation problem.

recorded

being

are

income

the

tiejdmefo for certainicorporations as against debt obligations and
?
partneis ips, and the advanc- should exert a salutary stimulus
ing of the payment dates for the
to
business

allowance

we are to turn this readjust-

accomplished

that

of

sources,

The President's proposal for

or rnese nave now leveled oir.

without
reducing the index of confidence.
In the circumstances, it is impor-

changes

treatment

®ral other potent economic malad- cient in real,
justments: rising consumer debt terms.

in-

date

ing from TB. It is time for management, labor and the public to
exercise care in interpreting ob¬

ap¬

a

taking.

.

leveling off of commer-.
Such shrinkage of ac-

tivity and employment
volved

regard

recognition

has proceeded in accordance
the

is

Inventory

transition from

buy

greater than in 1951 and maybe

great

al

of average

homes, major household

as

con-

as

order

values, and should create
continuing sense of obsolescence

in

Merryle S. Rukeyser

that

to

selling

and better

opportunities, mere idle
not
enough. Advertising

long

a

of

mere

better

Diego

in

The Nation-

will

greater retreat from

restraint

government
ference

tension

war

job

after

talk

Diego, Calif.

of

more

sensing the

'market

should alert customers to genuine
visible improvements in products,

Febru¬

situation of stability, the less of
our national production that will

lessening

the

of the lastnamed item, the advancing of the
payment dates for the corporation

Rukeyser

a

a

I

minis-

With

spoke

the San

With

running

Rukeyser has urged

with

is indicated

Mr.

lessening in world tensions.
The
greater the international swing to

be siphoned off into a void.

it

reform

policy and ad-

corporation income tax.

two

or

buyers'

a

Mr

renaissance

While

con¬

sultant.

year

of

trasted

and

business

a

advent

the boom

Interna-

tional

business.

that

bearish.

stage

I

of

Intensified

commentator

for

Summary

business

Selling Efforts Should Be

economic

don't

The

set the tone by acting
J
h

confidently, instead
timidly to cover.

o

ings

we

changes.

can

confidence,
according

afford to be identified with offer¬

that

assets

hereafter-acquired assets only
than not to effectuate it at all, and

many

foreign

-

-

Merryle Stan¬
ley Rukeyser,

can

Certainly

a?pects of tax

tax

vigorous selling.

more

on

Their salesmen will have compet¬
itive merchandise to offer to their

appreciation possibilities. We

1, 1954,
discriminatory against

the
double taxation of divi- on a long overdue reform.
There
dends, the extension of the loss is legitimate difference of opinion
carry-back to two years, the grant, on the desirability of a complete
of
current
deductibility to re- elimination of the double taxation
search and development expendi- of dividends, but few will deny
tures, the shift to the government the justification for going at least
of the burden of proof in Section as far as the President
proposes.
102 cases, the liberalization of the
This partial abatement of double

M. S.

mark et,-

securities

in

partners

as

if

success

the proposed

acquired after
which is of course

make

-

of tax

of

assets

of

Recent Business

it

a

never

!—

—

forecast

the

and

a

Sky Commissioners.
Therefore, with each underwriting

properly

1954

prosperity
before experienced.

Blue

And it will be

tangilble

I expect to see take
place this year, I believe that we

man-

goods,

consumer

all

to

Jan.

cost must be limited at the outset
to what the budget can absorb.

CSG

should result in the establishment
a healthier economy for this

the most—but hardly

at

Large

Thp«P

nrontwai

reform

quired previously, can be justified
only on the ground that the tax '

P s ls are
se nu~
m.ei[ous» cov-

from the present level,> of

expansion

the

other

available

-

5%

offered, by the

Sr® an.a
Ppnnrf

dividends.

on

,

,

contract,. do not expect

21

before

Economic

Report, Washington, D. C., Feb. 8, 1954.

Joins Sutro & Co.
(special

SAN

to

James M

gtaff

of

gomery

New

the

financial chronicle)

FRANCISCO,
Sorenson has

Sutr0

&

stree1|.

York

Co

?

Calif.—
joined the

407

members

and

,

Stock Exchanges, i

San

Mont-

of

the

FrancisCO

22

(898)

The Commercial and Financial Chronicle

kept
that,

Getting

when

with

the Saver to Own

a

with

inflation

finds

"In the past decade the growth

sells, he is faced
capital gains tax which

pace

he

will

gain

Shares in American Business

take away up to

of American industry was stimulated by debt and war and inflation. With these unwanted pres-

even

sures

25% of his
though he is no richer
purchasing power.

in

Stock

calling

Discrimination Against the Equity

Exchange

that
of

better

a

contribute

js

understanding of his indispensable role in the

two

assuming

and

responsibility

half

a

years

for

ago

°JJ*e.

Before

Aef

this

New

tak»

York

Stock

'

to

90

ap¬

preciate

at

all

caving

3.0%,

life

of

owners

policies

estimated

an

not

insurance.

insur¬

counting

gov-

under¬

^ernment

is

jlion individuals have savings

importance of
the

impor¬

tance

of

sav¬

the

is

vivid

An
,'Hpc

Keith

g.

to
as

the

and

strength

miracle

growth
growth

and

strength

that

mil-

in

nub-

which

savings

evidence
.

A

.

nrp

npar-ptimp

hi 11 inn

n

that

,

Thic

the

ic

average

hi<5

ton

1

.r

y

run-

lpvnls—

vnar

wpaf.in{y

f

have

invest-

or

c:avinf*c

rnr-nrd

1 r

rpnrpepntpH

individuals

r.irrpnt

clear

know

we

of

fami-

all

of

rm.ntrv

—

Way of Life.
here tonight has

group

form

at

nhni.t

Yet

a

high
but

—

of

have

our

tal

has

vestor

with

securities

—

ernment

ot a!1 types, or
insurance
Policies^ have watched their purcontinually evalu- phasing povyer devastated by the

the

must

the

factors

tribute to

the

which

smooth

best

con-

It

is

does
and

From

do

Political

to

what

for

we

cartoonists

the

on

all

power

Since

owners

close

of

80%

insurance

incomes of

less

than

in

depict the working man
__tho r>rnrUmAr
in
-the producer—in mroraiic and a
overalls
cap, while they showed the
in¬

loss was .a
serious blow to millions of Ameri-

vestor, or saver, in frock coat and
top hat. .The consumer generally
wore

business

a

Few of
hats
I

here

us

the

on

suit

haven't

have

closet

cia* security.
* wonder how

derby.

every

today can boast, figuratively, of wearing the producer's
cap, the saver's top hat, and the
consumer's derby.
Onr

standard

in

1art?p
and

resources

nf

living
to

nart

to

our

tndav

It is gratifying to note that the
decline in the value of the dollar

i<!

natural

our

modern

and

efficient niuubuidi mamiiie. These
eiiiueni industrial machine
inese
natural

have

resources

been

de¬

m.OT;pnt

surely as our high standard
.
living today is based on yesterday's savings and investment,
t

.

,

.

,

»

so

our

row

standard of

will

be

and

savings

living tomor-

determined
investment

by

of

infla¬

Savers' Investment in Common

8V2
-

how about

the

savers

paid

and

new

jobs, to create

It

chosen

to

invest

securities such

How have
Since
have

as

in

Exnenditurp*

for

I

be maintained close to the
present

will

of

$28

even

fn
to meet

billion

have
a

to

tne needs

population.

year

be

and

increa^d

f

of

our

growing

m„ Funston-

.«

,h.

stock^exchange firms'* "wmhtngton" d!
Feb.

C*»

is,

1954.,

.

by

•




new

stock

in

dividends
to

war

today.

.

$4,000

Multiply this

who

have

be pointed out that
established enterprises

only

that

have

tention

dekj-

been

able

through

of

to

finance

increased

earnings

and

re-

greater

financing.

New

and

have found
not

it

ment

to

and

impossible

to

obtain

the

equity capital necessary for

new

market

Let

it

make

me

is

clear

with

not

that

our

corporate
this type

tap

new

of

sources

generally kept

pace

with the

budget

properly.

more

We ask for

special

no

•

A serious deterrent to the

considering investment in

saver

owner-,

ship securities has been the double

dividends

paid

shareholders

to

.

A study made last fall of the

then selling at a price below book
value, with 48% of these selling

.fgure0£ 20% "

Furthermore,
.selected

an

pro-

in

turn

expansion

and

production and jobs."

Effects of the Capital
Gains Tax

e

Another of the taxes which does
much

to

to

shackle the saver's will

venture

is

the

capital

gains

tax in its present form. This
levy
penalizes the saver who risks his

in
our

equity securities and
free markets from mak-

their

ing

contribution

maximum

flow of capital into indus-

tax

enacted

in

the

tax

double

did

passed

bill

The orginal
undistributed

not

taxation.

finally
the

1936.

of

proponents

any

However,
as
the Congress,

by

taxed

intend

distributed

both

undistributed earnings at the
corporate level and, in addition,

and

distributed

income

in

taxation,

which

has

been

by

discouraging

the

realization of gains and
encouraging the realization of losses.

The tax impairs the liquidity of
securities markets by freezing present investors into existthe

ing investments

and by discourtaking,
And the tax deprives the Gov-

aging

the-

hands of individual shareowners.
This

securities

risk

new

ernment

of hundreds of millions
of dollars of revenue because the

problem
only since 1936, is holding period is too long and the
probably the most discriminatory rate is too high,
our tax laws, applying
The
present
arbitrarily long
as it does
only to dividend income holding period has robbed capital
a

income

What

are concerned about is
the danger of a capital structure

nesses.

by unincorporated busiIt strikes directly at the
corporate form of business owner-

topheaVy with debt.

liquidity to

ship, the one form of ownership
offering the greatest opportunity

ing

we

The

soundness

debt

of

securi-

ties, of course, depends upon the
cushion of ownership capital be-

securities—all
terest

in

have

vital

a

broadened

a

in-

base

of

debt

It does

the

to

nor

cor-

earned

for

small

to

savers

share

in

America's growth.

Taxation
•

There

flows

into

forms

of

investment

the

reward

is

commensu-

two

are

totally false

consumption,

investment
proper

the

all

essential

functioning of

Take

economy.
and

are

and

the

away

donkey

a

free

carrot

sit down.'
sit-down,

will

down real wages and the
urUI
k„ll,.
enf
producer will balk; set prices too
high and the consumer won't buy;
tax incentive away and the in-

vestor will seek other

of

avenues

investment.
progress

ma,kes it imperative that the in-,

phrey,, in

his

recent

testimony

before the Joint Committee

on

the

when

there is adequate chance for gain

they will

save

and invest.

business, more jobs, better
and higher standards.
.

con-

They

jobs
»-

period would not be a tax
reduction measure, but would in-

holding period would increase the
take

tax by
dollars

is

to

first
is

problem
viewed objectively. The

be
is

that

relief

sort of

some

from

this

tax

giveaway to stock-

holders who will be receiving taxfree income.
Such a
statement,
j.i-i

either

x

.
i_.

deliberately
avoids

norance,

income

has

,
n

.
•

,
i_

heart

the

of

that dividend

is

already

been

taxed

To

at
very high ratesgets to the shareowner.

it

permit

taxes

to

what

be

remains

received

without imposing

owners
i

,1

*

tax is not

a

after

by
4*

a
:

those
second
I

giveaway—it is simple

Treasury

several
per

should

not

million

is

It

year.

this

from

hundred

therefore,

hard

A
0f

this change
made, and made

be

substantial

tax

would

Governmental

cut

in

hlthave

ties

stantially.

now

blocks

celling cemri-

aDDrec

Here

would

rate

increase

by lower-

revenue

mo<;t investors from

ernment

the

likewise

ing the barrier which

agafn

henefit

rted

suh-

the

Gov-

from

s?et-

tine

a

frn?L

\ grlater numbed of Tr^ns-

f

hieher

total

tav

revenue

a

netionc

"GLiUllb.
.,

,,

_

Available Treasury figures

justice.The second false concept is that
relief from double taxation would

wealthy.

This is

to

why

now.

once-and

before

the

of

see,

'

through lg-

or

the

m->

dicate that the capital gains tax,
well

as

tax

double

as

which

just not the fact. American share-

does

...

taxation

not

is

affect'

a

onlv

.

_.

io*n

these people will benefit and they

e wealthy.
Figures tor 195a
show that 42% of all income tax

represent

of

returns

of

showed

owners

number'8%
a*

America.
them

$5,000

a

cross-section

Thirty-two

have

$10,000

true

million.-

percent

All

year

and

76%

were

gains

income

under

/4 /0

from

income under

of such returns

persons

with incomes

under $10,000.

The Task of the Securities

House Ways and Means Commit-

1957, -would reiteve the

capital

taxable

a

®

and

under

Hundreds of thousands of

are retired people
living on
the income from invested savings.
.
The
current
proposal. of the

tee-

reporting

family incomes under

them

know

our capital markets.
I repeat: reduction of the hold-

cepts about double taxation which

benefit only the

economic

most precious assets
mobility. A cut in the required holding period to three
months is one major step that
can
be taken to restore needed

—its

must be eliminated if the

liw wab
aJiomatic pr2klem.
that adequate".sk*
incentive tor proThe
for

of one of its

crease
Government revenues by
encouraging
transactions
which
just do not take place at all today.
ItJjs estimated that a cut in the

False Concepts About Double

«i.-n

^ forw^d"rvew^business "ilwtf

an investor who
issue where price has

will

which

business

means

—
changes
which will recognize the importance of the saver. ■:

"This

message,

investment,

on

of

market and book values of all Economic Report, put it well
common stocks listed on the Ex- he said:
change disclosed that 62% were
"As long as Americans

this

mote

porate

course

tbe.stock averages. He buys in- centive for equity investment be
dividual securities, the prices of restored.
v*
many of which have not kept pace
Secretary of the Treasury Humwith inflation.

families

on the entire economy.
As
President Eisenhower said in his

security represents a sound and
necessary
investment
medium,

itself, for of

Continued

buy

by the

sum

American

effect

from ownership securities.
not apply to interest paid

debt

Hold

averages

or

feature of

concern

to the

stocks?

of

a

are

such
funds.
The securities industry is ready, willing and able
but needs assistance to do the job

taxed

growing businesses
extremely difficult

growth.

for

they made out?

stock

millions

for

to
about
preferred

up

financially able to purNew
sources
for
such
funds chase stock and are responsive to
must be developed among the mil- financial incentive, and we will
lions of Americans of middle in- open up a vast new pool of needed
come.
ownership capital,
This then is the challenge, and
The enactment of these prothe opportunity, before us—to re- posals would have a beneficial

profits

-

'

..

■777 add....

a

as

■

?

1
.
'
♦
,,
plant and equipment will u
have to

level

strong

should

than

ownership

common

paying trom inflation.
and improved' ■ No investor, however/can

products, and to replace outmoded
facilities

as

period

out

50%

is

better

new

not

75% before the

over

have

more

who

.

taxation

double

stocks.

But the foundation

is

postwar

duction,

million

from

historically supplied the bulk of new equity capi-

who

salient fact

Stocks

the

today,

further

any

Economic progress will require rise in the cost of living, it would
continuing heavy expenditure for appear on the surface that equity
capital investment if we are to-savers had not suffered materially

provide

1955

couple

for

lr0m retained earnings and deThis whole concept of double
The capital gams tax makes it
preciation reserves. To provide taxation came into our tax law difficult for new and growing
these capital funds industry found not by design but as the offspring companies
to
obtain
adequate
[i 'necessary to double its debt of a discredited experiment, the equity funds,
and to reduce the percentage of short-lived undistributed profits
The tax distorts the value of

where

Now

As

nnv

prevent

tion.

investment.

.

ol

industry

bas been arrested within the past equity capital.
year- ,** ls to be earnestly hoped
The shortage of equity capital
^ the economic policies of the in the postwar period is evidence
Administration and fnvth^
the Congress that, in a free economy, capital
..rlii
will

veloped by the investment of past
savings.
Our plants and equip¬
ment have been provided
by simi¬
lar

many people are

capi-

that since -World War II neath them.
The
millions
of
the loss of purchasing power suf- savers who through their ownerlered by the holder? of savings ship of savings accounts, life inaccounts and other time deposits surance and pension rights have
was m°re than $21 billion.
an indirect interest in such debt

American

dup

far
re-

aware

three
know

almost

yet

—

and

those

shelf—I

for whom life insurance must

cans

will

proposals,

investing
in common

-

The

investors.

new

example,
would provide complete relief in

devastated

economy

tax

of

millions
preSent

issues» industry raised $3.50 by out of the corporation's after-tax to the
deb* tinanPng and supplied $9.00 earnings.
try.

provide the cornerstone of finan-

o

ne-

it has

greatest

American

house

the

ln

biltheir

of

to

life

loss

a

$81

of

value

with

annual

the

suffered

face

families

had

to

relief

partial

providing

stock issues have played only a taxation of dividends, first by taxminor part in this capital for- ation of earnings at the corporate funds
!nat>°n- For every dollar raised level and, second by taxation of keeps

jf

1952

insurance

policies.

I

the past

of

purchasing

lion

can

him, :that
tonight.

talk

life

in

what he

saver,

and

us,

should like to

like

1945

of

the

about

for

should

inroads of inflation.

functioning

of that system.

our

store incentive for equity investon

particularly
against
the

might wish for because

we

economy

productive sysOur representatives in Gov-

tem.

ate

the

the

had.

ever

°f-the

expansion

in

been hit
income

Admittedly,

expansion

c*??sen the promise of security as
ottered by savings accounts, bonds

^

has

saver,

financed

from

in

saver

of higher-income Ameri-

personal

equity saver?

less than

the

sources

dividends

to date of this

the

dustry spend our business lives
helping to link the individual in-

us

of

saver.

The amount of equity funds re-

cans

than

more

of

discrimination

it

Those

the

in

_

in-

only the equity in-

economy

glect
the

in-

interest

„

the

ve^ ha. beer, hit the effect
twice
What has been

has been America's forgotten man.
The
tens
of millions
who have

common

drop of

a

everyone

earnings

.

fore.

American

The

by

fii/

stock

90%

million

mpnt

nine*

greater importance to our

even

thic

in

some

of

childhood. But few Americans

national
national

million

own

estimated

bv' 122

Funatoa

truly understand that the collec¬
tive savings of our people have
an

whom

mil-

covered

are

liclv owned corporations

rec¬

ollection
my

of

Bonds—10 V2

Ri/.

ac¬

persons

'•

least

piggy bank

a

Uai

numprc

Cioh

dividual—for
at

Series' E

Some

million

Americans

?

ings to the in¬
me

43

f lion-

saver.

the

and

jown

We all know

lation

*53 rini"l- n0,t,_cause<}.,the nation's^house to favors. We do ask, however,L for
collapse.
Since World War II we a square deal
for tax

little

counts

.

de-

of national

taxation

by

taxes

our

are

stood

the

in

/

million

ance

how

hard

where

nrpcf>nt

there

Today,

!

to follow

the lead of Canada and pass legis-

tal.

5.2%

Double

from, let's

come

Amprira
America.

Ex¬

change, I have
come

will

lnnif

o

consider

we

money

,

in

has greatly diminished the equity
investor's "take home" pay.
Of

economy.

w

Equity Investment Needed

exceed

years

40%.

Savings in America

market for securities which is the

14

have

dividends

from

course,

Since

More

quired

segements

In the

1939,
to

come

nation's welfare by acquiring

to

the Congress were

it would greatly encourage modest
investment in common stocks by

equity in¬
kept pace with

other

economy.

clined

by the New York Stock Exchange. Reiterates need
law changes to restore incentive for
equity investment,

certain

of

the

since

authorized

saver can

If

from double taxation of dividends,

the

of

vestor has also not

business, Mr. Funston urges greater emphasis on serving
all investors, large and small,
and, to that end, employ new
techniques, such as the Monthly Investment Plan, recently

and holds

income

The

upon

ican

of tax

again

initiative
and • enterprise
compelling if our economy
continue to grow."

Investor

all segments of the securities industry to join
the campaign to encourage the saver to own shares in Amer¬

in

to

dividends which this group

on

now pays.

make

„

In

need

we

tax

more

By G. KEITH FUNSTON*
President of the New York

fading,

.Thursday, February 25, 1954

..

-

-

'

Industry

:

While changes in our Federal

group of-shareholders having in- tax rpolicies can provide a major
comes

under $5,000 of 78% of the

stimulus

to

the: flow

^

of saving^

Volume 179

Number 5302

.

.

1

The Commercial and Financial Chronicle

.

(th

t?if£

.•

>

hfO'rt-i<

{

it.i'tji I

'!

,

i

if'^1

'ijrf!.'»:

t* ♦

*

•

22*>

(899)

into ownership capital, the task of

actually
through

obtaining
broadening

such
funds
the base of

Our

corporate ownership must fall pri¬

marily
It

is

firm

my

dustry

belief that

much

do

can

the growth of

age

powerful ideas of
cratic
of

one

time, Demo¬
ownership
production by

of

means

millions

challenging
concept
of
public ownership of industry —
not
through government but
through individual investment —
includes a broadening of corporate
ownership not only through the
addition of millions of
but

also

new owners

the list is

non-bank

buyers of these securities.

of all
its public relations activity in 1954
the

invite

phrase:

all

segments

of

in presenting
this idea to the public.
dustry

join

to

us

The objective
vestment
the

of the entire in¬

community

should

be

share

of

ownership

of
a
business

American
American
to

every

is financially able

who

the

assume

by

risks

of

common

To achieve this

stock investment.

necessary for the
industry to put even
emphasis on serving all

greater

investors, and to seek and utilize

techniques such as the
Monthly Investment Plan, a pro¬
gram especially designed by mem¬

new

ber firms of the New York Stock

Exchange

obtaining

for

against the forces that might push the economy into a nose dive.
One of the courses of action will be through the medium of the
credit

So

Federal

launched

was

resulted

balloon

trial

eventually

which

the

in

Monthly Invest¬
only three weeks
-old, this Plan has exceeded our
•expectations — there are already

ment Plan.

Now

five thousand plans in oper¬

over

these

think

We

vestors.

idea

as-you-go

of

plans

are

taken

to

the

in

may

a
hundreds of thousands of

vestors to
We

of

must,,

in¬

new

stocks.

own common

in the government security
with all sections of the list coming in for consideration

market

with such

development.

a

of the responsi¬
bility of carrying out such a pro¬

cognizant

fully

gram.

This involves the education

•of millions of American

the

risks

well

as

rewards

the

as

to

savers

of common stock investment.

The

adequate
liquid
for emergencies as a pre¬

Importance
reserves

of

requisite to stock investment must
constantly
be stressed
as
must
the necessity of obtaining full and
complete information from a re¬
liable source before investment.
.

If

our

economy

production and
we

will need

base

ing

a

of

achieve

to

miracles of mass
mass consumption,
constantly increas¬

greater

•even

is

investment.

equity

We will need to bring about mass

investment

so

vestment and

There is long-term money around,
according to reports, and these funds could be used to finance in
a modest way the new money needs of the Treasury.
The buyers
long-term government obligation would be mainly non-bank
This kind of financing would not create deposits and

a

might take funds out of the money markets that could be used

for other purposes.

The

ment

is

a

this

tax

by

all

are

all of our

one

the ways

of

maintained and/or created. Because there
the economic picture, the boom is over
the fear of inflation has disappeared it would be more desir¬

and

The

laws.

se¬

geari

can

contribute by acquiring

better understanding of his

in¬

If each of the three groups, Gov¬

the

and the saver,

securities * industry
will work together,

create for

nation

our

economic democracy as
as

an

potent

as

pervading

our

.political

democracy, an'economy in which
most

have
the

f

every
a

American'family

through cash
at

paying cash
shares

the

to

share

a

Company of North America

purchasing power. The position of the economy
new deposits should be a welcome addition

paid

a

20% stock

Last June the quarterly rate was in¬
creased from 50 cents to 62 V2 cents and the last payment of 62 Va
cents made Feb. 1 indicates this payment will be maintained on
the increased shares now outstanding.

dividend

Dec. 31,

on

1953.

and the Fidelity-Phcnix
their quarterly rate from

The Continental Insurance Company

both

Company

Insurance

Fire

raised

that total pay¬

jto 75 cents last week. This would indicate
1954 will

for

the $2.95

exceed

American

The

Insurance

share, including an extra

a

1953.

cents, paid by each company in

of Newark

Company

also recently

payment to stockholders. A semi-annual pay¬
ment of -30 cents was declared on Feb. 11 indicating a total divi¬
increased

its

cash

dend this year

of $1.20

a

share

as

against the $1.10 distributed in.

f

1953.

stock dividend of 20%

Last week Pacific Indemnity declared a

payable to holders of record March 15. The company has been
paying quarterly dividends of 75 cents a share for the past several
years and indications are that a rate close to this will be declared
on

the

1

shares.

new

Fire

Pacific

within the last
against the 75 cents

its quarterly dividend

increased

The current rate is 85 cents a

share

as

On this basis payments for 1954 would total
distribution of $3.00.

$3.40

share as against the 1953
S. Fidelity

The U.

a

equivalent to

against the $3.00 to be paid in the future.

as

The Insurance

declared

& Guaranty has

a

stock dividend

March 17. Last year
and maintained the
share on the larger capi¬

payable April 15 to stock of record
the company paid a similar stock dividend

their

are

markets in

money

adjusting for

past several years. After
the former dividend would be

dividend

stock

$2.40

dividends at the rate of $3.00 a share on the
be outstanding. This is the same rate as has

for the

maintained

been

created which

the

.

record

of 10%

has put

.

stockholders' approval

meeting on Feb. 25 will pay a 25% stock dividend to holders
March 26. It is the intention of the company to con¬

a

quarterly cash payment of 50 cents a
talization.

number of other fire and

A

casualty companies have taken

the cash dividends received by stockholders. In
view of the favorable investment results achieved last year, we
action to enlarge

expect additional companies in the

would

coming weeks to increase

dividends.

it, in the opinion of those who believe that the primary anti¬

dote

to

decline

a

business

in

activity is

injection

the

of more

The

2V2% due 1961 is still

banks

which

which

have

these

means

been

held

dealers and traders.

being bought by the commercial

institutions

more

which

in

lies

With Norris & Hirshberg
(Special to The Financial

into the credit stream.

or

less

are

in

absorbing

temporary

the

bonds

positions

by

fcountry/

-




-

Chronicle)

used for tax exempt

Webster

Norris &

2V2S, with the funds being

securities.

NATIONAL BANK
Bankers

Two With A. W. Morris

bur

A.

Financial

Nichols

have

Thomas

and

C. B. Johnson Joins

Chronicle)

become

F.

(Special

SAN

with

A.

Santa

W.

Morris

Monica

the

of

Angeles

&

associated

Co.,

Boulevard,

New

York

9680
mem¬

and

Los

Exchanges.
Mr.
formerly with Daniel

Stock

Morris

was

Reeves

&

Co.

Mr.

Nichols

was

B,

ciated
Russ

to

The

Financial

ChronIcle)

"FRANCISCO, Calif.—Cy¬
Johnson
with

has

become

Walter C.

Building.

formerly with Guardian Securities

prior

Corporation

and

Upham

Harris,

&

Head

with J. A.

Hogle & Co.

r

Davies & Co.

the

Office:

Government

in

Branches

thereto
Co.- and

in

Colo.

—

,

Pakistan,

India,

BREAKDOWN OF—
Govt. Bond Portfolios
Sources of Gross Income

Uganda

Bishopsgate,
E. C. 2

26,

London,

17 N. Y. C. Bank Stocks
Will

Ceylon,

Kenya, Tanganyika,
Uganda, Zanzibar, and Somali-

be

sent on

request

Aden,

Burma,

asso¬

Gorey Co.,

Mr. Johnson was

with

to

Kenya Colony and

Walter C. Gorey Co.

HILLS, Calif.—Wil¬

Nichols

Chronicle)

JUNCTION,

Main Street.

Building.

of INDIA. LIMITED
to The

(Special to The Financial

GRAND

It is reported that some of the savings banks

have been sellers of the recently offered

(Special

Joins Ferrell & Ferrell

Ga.—R o b e r t L.
is now
affiliated with Kenneth Home has become affilHirshberg, Inc., C. & S. iated with Ferrell & Ferrell, 41 V/z

ATLANTA,

land

Protectorate.

Authorised Capital

Paid-up
Reserve

banking

_£4,562,500

£2,281,250

Capital

£3,675,000

Fund_

Laird, Bissell & Meeds
Members New York
Members American

120 BROADWAY,

Telephone:

description of
and exchange business.

The Bank conducts

every

Trusteeships and Executorships
also undertaken
,

our

stock declarations, are the following:

or

The Hartford Fire Insurance, subject to

position to absorb
new money financing by the Treasury and it would not take more
doing to put the commercial banks in a position to supply these
funds to the government without help from any other investors.
Accordingly, if the issues that were to be used to finance the new
money needs of the Treasury were to be tailored to meet the needs
of the commercial banks, such as an intermediate term obligation,
not only would it be well taken but there would be new deposits

bers

can

direct ownership stake

dynamic ^future

ahead for

the

Among the larger insurance companies to increase their divi¬
to
stockholders within
the last several months, eitheir

a

rus

and

policies have meant that the

dends

previously paid.

BEVERLY
can

we

dividend

standards.

to the commercial banks.

dispensable role in our economy.

ernment,

increase

may

month.

Money Markets Deemed Receptive

equal to about 70% of investment earn¬
to stockholders. The balance together
when realized, have been retained to
provide for the growth of the business.
the large increase in investment income com¬

conservative

with

it is contended, to help and bolster the economy through
the creating of bank deposits1 by the sale of government securities

Federal

many

Recent and prospective dividend pay¬
cash distribution' but most payments
remain conservative in relation to investment earnings and past

able,

goal,

its
needs of the
The ..saver, him¬

investor.
can

is

in

downward trend

a

to

in

industry
machinery to "the

self,

are

which deposits are

in

consumption

curities

small

commercial banks

the

to

in

at this time is such that

realistic

more

securities

ernment

Govern¬
contribute by giving us

can

It is pointed out that with the decline in business

purchasing power. It would be more favorable to the economy if
bank deposits were to be built up or increased. The sale of gov¬

money

seeking

market specialists than an issue other than a longnew money requirements of

the Treasury.

investment

in

10%

exceeded

earnings has been paid out.

opinions around

more

reported

gains
have

percentage distributed to stockholders has been considerably less
than the historical percentage.
In some cases less than 50% of

of 35

should be used to meet the

one

1952

,

In recent years

bined

ments

Purchasing Power Viewpoint

other hand, there seems to be

On the

among money

term

large

Historically, dividends
ings have been distributed
with underwriting profits,
augment capital funds and

65 cents
i

'

i

people.
In

declared.

investors.
it

the
over

in investment earnings comes on top of substantial
previous years and is believed to be the most
factor in the larger dividend payments now being

increased

the Treasury for new money.

of

increases

The

important

long-term government bond will be issued by

a

that production, in¬

shared

•equally

Treasury Offering Debated

big points of discussion in the money markets at

district that

encouraging features of the annual reports-

been

has

far

so

most

instances, reflecting better returns from fixed income obligation,
a well maintained level of dividend receipts and a larger volume

of

the, present/time is the kind of financing the Treasury will do in
the not distant future. There are.still strong feelings in the finan¬
cial

the

of

income.

tinue

Next

decreases being

or

net

One
issued

To investors increased divi¬

represent more tangible evidence of

operations than do small increases
profits.

in

shown

distributions

stock

or

successful

be reflected

should

markets

conditions, it is imperative to maintain bank deposits which

remain

course,

While annual reports and operating figures for the year just
have attracted a fair amount of attention, most statements

in line with earlier expectations.

are

ments

picture if there is further deterioration
situation.
The more help that is given to the

economic

the

money

pay-

make it pos¬
period of time, for

sible, over

money

the credit

ease

in¬

new

that

the

«,■

far, there has been very tangible evidence on the part of
to keep the money markets on the easy side and there
a strong feeling around
that other measures will be

ation and it is estimated that 90%
of

upon

vv;

by fire and
of insurance

payments

ended

to be

One of the

the

influence

an

•;•; \

.

greater

Incidentally, it was at my last
public meeting with the Associa¬
tion of Stock Exchange Firms in
that

•

...

seems

by individual savers.

Louis

have

will

which

policy

markets.

participation in equity investment

St.

each day

are

tory liquidation, has turned out to be something more severe than
what had been expected not so long ago. There appears to be no
doubt but what the Administration will move fast and take steps

it will be

£oal

securities

markets

cash

companies have dominated the interest
stock investors over the past several months.

This gain

concerned because the trend of
the economy is going to have a marked effect upon the course of
interest rates. The statistics that are coming out seem to indicate
that the so-called "rolling readjustment" aggravated by an inven¬
far as the money

Insurance Stocks

—

increased

increases attained in

is becoming more important

business pattern

The
as

in¬

our

and

of invested funds.

j

Scrutiny

Business Conditions Under

"Own Your
Share o/ American Business." We
simple

The longer end of
also acting well with reports that some of the smaller
investors as well as pension funds are still the important

due 1961 being the most favored issues.

2V2%

theme

the

being made in the list,

deposit banks the most important operators at this time.
that these institutions are continuing to lengthen
maturities with the middle-term ones, with the recently offered

dividends

casualty

indicated

is

It

Stock

dends

large amount of switches

a

are

with the

In furtherance of this objective
the New York Stock Exchange
as

way

There

by increasing the hold¬

adopting

into the market from

in which securities that come
time to time are being taken by investors.
the

to

the technical position
the answer

Easy money conditions is

improving.

of the market is

ings of today's small investors.

is

favorable and this means that

undertone is

This

This Week

the recent

intermediate
the not dis¬
demand for nearly all issues. The

future*, there is a good

tant

Americans.

more

securities

refunding, and, in spite of the concern about either an
term or long-term issue for new money purposes in

the

E. JOHNSON

By H.

CHIPPENDALE, JR.

By JOHN T.

government market continues to absorb the
that must find a permanent home. This is the result of
The

our

Capitalism,

our

in¬

our

to encour¬
of the most

Bank and Insurance Stocks

Reporter on Governments

the securities industry.

on

Bell

Stock Exchange.v
Stock Exchange >

NEW YORK 8, N. T.
BArclay 7-3500
1-1248-49

Teletype—NY

(L. A. Gibbs, Manager
•

Trading Dept.)
Stock*

Specialists in Bank

i

84

*

(900)

The Commercial and Financial Chronicle
.Thursday, February 25, 1954

long have opposed anything that

Farm

simplified,

smacked

Policy and Farm Surpluses

experts in the Administration

to

of

By ARTHUR MOORE*

work

dure.

finds women react to high supported consumer
irritated housewives, not as Republican party workers.
Concludes main problem is to put surpluses to work without

Shortly

after

President

or

Eisen¬

County, Va., asked

a

the

station

new

in

surplus."

set

Special

It

be

used

November.

his
press
conference to explain
the Administration program, Sec¬

■

cal

the

I naturally
assumed
interested in the politi-

to

whether

gain

votes

they

the

Republican

was

a

in

votes

candidates.

mistake.

ested

lose

or

They

for

channels

of

In

trade.

reserve would

Creation of the

the

that

mean

how

be

disposed
would

reserve

high

present

of

part of
has a

show to

be

could not understand.

bitter¬

Why,

they

should

grow¬

surpluses

as

ing number of

think

when—in

a

There is

so.

room

about

the

something
of

to allay

urban

voters.

columnists
same

are

the

picking
that

report

our

irritation

that

Dr.

The

Wlilton

Eisenhower, the President's
the

broth¬

in

had

the
trade

of

had

This

was

it

of

the flexible

system recommended

of the Eisenhower farm
But the Administration

by Eisenhower.

This

90% of support is solid. It is based
on a sincere concern
for the eco¬

tioned,

farmers, who have
a long period
of
declining prices. It is expressed
number

a

of

legislative

tinuation
plans

of

for

flexible
tions

touch

opinion

These

from

up

with

and

current

from

Basically, the
flexible
first

price

voted

publicans
The

Eisenhower

supports

to

the

here

80th

is

to

gradually,

in
of

rec¬

mended

adoption

modernized
result

in

decline
tent

many

of

ulating

They

the

But

books

Congress

five

years,
never

now.

shown

any desire to put them into active
It has gone on

poning their effect
rigid, 90% supports

post¬
favor of

in

the

on

basic

crop.
Eisenhower
simply said:
The time for
postponement is al¬

most over.

and

President

Congress

a

Ahead,"

did

novel way

*A statement

ing

on

a

offer

of tempor¬

by Mr. Moore in "Look¬
monthly report by the

National Planning
Association,
ton, D. C., February, 1954.




for

Goal

Washing¬

what

our

planned.

for

opposed

establishment

class

condition

which

plans for

Allied

a

an

or

60% of the $11.4 billion they plan
ment.

new

plant and equip-

In this connection

covered

through
plans

the

investment

a

they accumulate through depreciation alThis

seem

element

of

It is hard to
so

their

funds

companies

general
year

these

will

fi-

economic

1954

is

outlook

provided

by
the fact that business is planning
a level of investment almost as

high as
records

that
were

the

years

1953, when all
broken, and has in
to

resources

sustained trend,
our surveys

of capital invest-

have

we

endeavored,

A

over

tion,

year ago we

for

the

years

through 1956, and this
carry

the

survey

a

year

it

the

in

up

<

the

capacity

in

were

possible
the

moderniza¬

would

process

to

poten¬

fill

any

left

by less investment for
expansion. Thus it would be pos¬
gap

sible

to

sustain

the

investment which
many

as

key

a

high level of

is

regarded

ingredient

by

of

a

high level of general prosperity.

Whether., investment.,, for.
modernization
the

same

will

to

come

attractiveness

as

have

invest¬

ment for

expansion remains to be
determined. There are
many who
inclined

are

to

doubt

happens here, of
pend

in

large

sions

in

the

it.

measure

realm

of

What

will

course,

on

de¬

deci¬

economic

policy for which my statement is
designed to provide some factual
framework.

Pike With Brush, Slocumb5
(Special

SAN

to

The

Financial

Chronicle)

FRANCISCO,

Inc.,

sur-

Pike

1

members

1953

has

Calif.—
become

as¬

Brush, Slocumb &
Montgomery Street,

Stock

will

further,

year

J

there

immediately ahead. If,

however,

with

series of

a

slowing

realize anywhere near
tial of investment for

for

financial

years ahead.
veyed plans

of

the

San

Francisco

Exchange.
Mr. Pike was
previously cashier for McNear &
Willard.

through 1957.
As would be expected, the plans
for investment fall off as we go
further into the years ahead.
But

2 With
(Special

SAN

what is

manufacturing
whole, however,

remarkable is that so
inyestment is planned for
c01^in§ years.
The survey

^le

a

already made reference.

in

some¬

that

industrial

Co.

weakness in the capital
investment
outlook
to
which
I

have

How

of

investment plans

to
carry
out
plans for 1954.

a

needed.

cross-currents

some

growth
the

with

business

.capacity

suggests

T.

needed

as

subsequently

table

be

Howard

between

the

as

industrial

accompanying tabulation:

This

sociated

sus-

all

es¬

and

so far as X
the best figures extant
industrial capacity are
given in

on

increasing success, to get some
idea of the dimensions of capital

a

of

required.

Institute
of

manufacturing
more

deprecia-

that

be

now in place.
Our surveys indicate that
since.

1939

to

force to

The reference to
obscures

is

it

be safely asserted
that
important element of strength

In

depreciation

their investment

over-

lean,

for the

a

allowances,
their retained earnings and their
borrowing capacity manufacturing
companies, as a whole, would lack
the

value

ment

envisage

the

billion

Machinery

Products

important

a

severe

which

more

in the

which

capital investment.

decline

the

an

strength
as

fact

a

add

to

tion allowances
tain

is

ahead to

more

considerable amount of in-

a

plans, however, indicate that the
trend of investment through the
year will be downward, and that
for smaller companies this will be

to spend all of the funds

lowances.

that

This

make the investment feasible. The

is the policy of 85%
manufacturing companies

the

exceed

planned.

of

that it

ago

of

been

invest-

year

survey

made

we

actual

to

year

has

year or

sight

dis-

we

the

nally work out only time can tell.
In the meantime, I am sure that

gives

1954,

this

develops

investment is the strong finah^I

invest in

$125

very-

in

plant and equipment

will

itu

to

first

estimate

we

of

Ko¬

in

somewhere

would

by

present

the

capital

have about $6.8 billion in

the

industrial

whole

a

are

and

new

the

of

our

know,

vestment

capital

to

as

roughly that
neighborhood

so

look

reason

backlog

some

start

put

than doubled. The de¬

of

surveys

One

element

strength to

the

surpluses.

flexible

price

example,

over¬

of

Surplus Without

Dumping
The

difficulty

is

outright,
dumping

to

put

sur¬

surely result from

or

even

a

an

disguised,

program.
A
formula
to achieve this is
being sought.

Tucked

away on page M-58 of
President's budget message—
not in the farm
proposals at all

the

—

are

as

good

as

panies.

made

we

early

in

1953

showed

Hannaford, Talbot;

to

The

Financial

Chronicle)

FRANCISCO, Calif.—Har¬

A. Harper and Myron L. Fairchild have become associated with
Hannaford & Talbot, 519 Califor¬
ry

nia

^dustry

have

shared

fense

fully

as

program

over

to

of
a

strengthen

dispose of $1
agricultural sur¬

three-year period,

Street.

Mr.

a

this

ment in defense facilities.

the companies which
cooperate in

Although it has not taken place
thus far, it is also
possible, of

how much of their
capital investment will be for
modernization and how much for

that

there

will

be

cess

our

some

downward revision of investment
plans in the light of sales pros-

pects

which

glowing

have

since

made.

become

the

plans

^

actual

investment

equalling

not

in

prevent

that

year -

had

OF

returns indicates that plans

INDUSTRIAL

How much needs to be done to
modernize our industrial equipment is underlined by the results
CAPACITY

(1939=100)

Steel

112

machinery.

115

126

Automobiles

of

(Special

vague

language is

Gremmels

Department

experts

who

(Special

1951

130

1952
140

1V53

1956

Financial

C

has

o

1

o

been

Chronicle)

.—Charles
added

to

L.
the

to

The

Financial

Chronicle)

»

Spring

1952-

1953-

Los

1953

1956

146

147

8

200

236

271

304

331

371

12

9

12

175

280

325

354

400

452

560

13

13

24

104

130

153

17C

196

210

235

Street, members of the
Angeles Stock Exchange.

12

4

-

1

With First California
(Special

15

7

250

288

328

423

503

553

29

19

10

SAN

135

143

152

157

163

178

3

4

9

Hoelck

172

250

293

322

357

393

479

11

10

22

Petroleum

123

160

178

185

194

204

218

5

5

7

Other

109

120

133

141

148

155

166

All

131

156

175

187

204

218

238

"Including aircraft.

The

LOS ANGELES, Calif.—Don Pi
Mitchell has joined the staff of
Revel Miller &
Co., 650 South

117

refining
manufacturing
manufacturing

to

DENVER,

243

"Transport equipment.

ORLEANS, La.—James E.

With F. I. F. Management

jL952

-Planned-

154

Machinery

>

Chronicle)

delet Street.

Percent Increase
;■

1946, -1950

Financial

Hudson has become affiliated with
Wallace Bouden & Co., 219 Caron-

1951-

*

Electrical

of

The

skimped

which

that

INDEX

surveys

NEW

to

modernization have been staff of F. I. F. Management Cor¬
to accommodate great poration, 444 Sherman Street.
exPansi°n, such as that called for
Korean crisisRevel Miller Adds

less
were

There

recession, but it did

ask

expansion of facilities. A study

was
some
downward revision in the 1949 business

from

has

(Special

Food

economies

slowly developing concept.

State

the

With Wallace Bouden

Chemicals

the

friendly countries.
Behind

of the things industry is hoping to do is catch up with a pro-

one

of modernization which
lagged in recent years.
We

Here the President said he would
worth

de-

hence

and

the

depreciation arrangements used to encourage invest-

paragraphs which
cautiously approach the problem.
to

in

In making plans for such large
investment over the years ahead,

to

seem

accelerated

three

authority

It

those of the large com-

Also, they don't

course,

pluses to work without the harm

pluses

not

to

the world market.

billion

'

The

of

use

even

wheat,

The

ask

A Special Reserve

r

go

international pur¬

overseas

would

have been

operation.

pop¬

supports might leave U. S. cotton

so-called

price-support
politically po¬

has

a

recom¬

which

ideas

County

activity.

think

that would

these

Fairfax

re¬

in

price

crops.

Both
on

of

parity,

another

for

also

of

useful

some

priced
President

the

Grange, when they met
Washington recently, put a
high priority on the idea of stim¬

the

mount.

The

be

the
To

war.

Harper was for¬
as a whole (excluis that the smaller companies are slvecommercial establish- merly with Stone &
Youngberg
pose.
But some of them came
for
not keeping pace with the
many
years.
Mr. Fairchild
close.
i
larger pents) had preliminary plans to
companies.
One reason seems to lnv.est almost 80% as much in 1956 was with Hill Richards & Co.
The top
policy makers of the be that their
profits have not been as ^ P^anned to invest in 1953.
National
to

surpluses

as

if

they would
high support levels if the
resulting surpluses could be put

Congress.

lower

rather

accept

system,
by1 the Re¬

law

this

to

support

into
of

idea

back

go

line

of

both parties.

ommendations

of

But

group did not
extreme of saying that

farmer

members

to

men¬

Benson

This

sugges¬

people

failed

is typical, it offers

group
ular

close to

Another

program.

already

Secretary

action

con¬

supports,
the range

supports.

come

close

90%

raising

As

conference.

press

pro¬

posals, ranging from straight

it.

slid past the whole
concept in his

nomic plight of
been caught in
in

a matter of
fact, here is the
original aqd the boldest part

dramatize

backing for

natural.

either.

As

ever

oc¬

Adminis¬

new

possibility is strengthened by the
clearly
established tendency
of
plans for investment over a period

equipment
orders) although it has been declining.
(as

would

most

as

of

normal

not stress

on

of

Ad¬

not

The Administration did

ports—90%

^

the

the

high sup¬
parity, instead of

side

be

to

difficulty

outside

continued

the

always

seem

noticed

to them.

curred

solidly

is

uneasy

this

channels

other side, members of
from
farm
areas
are
as

would

But

doing

supports.

Congress
lining up

an

abroad.

heading toward outright col¬
lapse due to the high level of
the

that

ministration's idea of using some
of
the proposed
special reserve

was

On

world

the

ideas.

rean

possibility for

a

Several

advised the White House that
present system
of
supports

er,

know,

international
situation, surpluses should some¬
how be put to work on our side.

the

up

to

agricultural

on

farm

since

worse

ilar situation to develop this year,
It is also within the realm of

cap-

visitation of angels? They position of business.
In depreciasaying that we had gotten tion allowances alone we estimate
wires
crossed
somewhere; that manufacturing companies will

were

Urban-minded

line, with enthusiasm.

Alsops

really

Congressmen
importance of doing
among

as

well.
It is entirely within
the realm of possibility for a sim-

capital investment by
1954 will again come

is that there is still

visitation of devils,

a

hungry—this

good deal of cloak¬

a

talk

lawmakers

we

actual

business in

pretty

planning of

range

gf orders

wanted

look

Was their reaction to the Eisen¬
hower program typical? A

basic,

figures which,

up

quite general extension

a

longer

inclined to brush past the political
maneuvering. But they came back
again,and again to something they

new

most

our

equipment, is over-age,

tailed

which

ness.

more,

equip¬

been planned because investment

ment

this

this

in the first half of the year held

in

plant and equipment.
Hence
their experience indicates that

sentful
of
high price supports,
mounting surpluses, and the whole
long controversy which seemed to

toward

investment

new

there is

sup¬

business

There are, I believe, other substantial
reasons
for
anticipating

So

program

ment,

of

States has been

ital investment.

time.

a

(56%)
which is

the United

least

for

half

what

of

Eisenhower

recently

this is 25% of the $500 billion

port levels could be continued at
the

was

inventory disclosed that

than

investment

thirds

just

on

that

on

emerge

7

page

they include companies which
typically account for almost two-

clear

support ideas, but to irri¬
housewives. They were re¬

rolling

from

And it might
the most chal¬

County.

Prospects of Plant and
~
Equipment Investment

good chance of adoption.
None of this interested my Fair¬
fax listeners too much.
They were

price

Fairfax

even

of trade," the dumping
might be avoided. Over¬

this

of.

This

the price of butter.

I found myself
talking, not to
Republican party workers, reacting politically to their party's

tated

"normal

was

too

special

inter¬

were

through

stage

in

con¬

not

likely

were

the

near

retary of Agriculture Benson

effect of the Eisenhower pro¬

posals:

normal

This

timated

disaster relief, school lunches, and
foreign aid — but always outside

were

anywhere

Continued,

for

politics. They helped elect a Re¬
publican to Congress in 1952, and
are
making plans to repeat next
they

not

By

reserve.

would

which

completed by "American Machin¬
ist,"
a,
McGraw-Hill
magazine-

industrial

tration's

a

of

metal-forming,

and that the situation has
become

definition, this special set-aside
would
simply be labelled "not

wagon

it is likely to be heard
in more precise terms.
If
it will be good news to the
type of consumer I visited with

lenging of all

of

were

pro¬

months,

channels

He suggested that

These

workers—typical

party

farm

the budget message was
But over the next six

stigma

in

the

stock

our

and

from

struction

worth

what I knew about it.
active

or

prepared.

tools

so,

are

to tell them

me

gram

inventory of

an

machine

By going far down the list
of projects, and picking some that

the present huge surpluses be re¬
duced by setting aside $2.5 billion

Fairfax

are

was not crystal¬

either

support levels.

of

group

in

when

of

few

a

equipment

thinking

arily avoiding sharp drops in the

hower sent his farm recommenda¬

tions
to
Congress,
Republican
women

Their

years.

disguised, "dumping."

even

what

is

wise would not be constructed for

as

resulting from outright,

this

thinking about.
lized

plan involves a special
our
surpluses to finance

of

use

an

wealth-producing projects in un¬
derdeveloped countries that other¬

Moore

harm

it is possible- to
acceptable proce¬

The

Washington Bureau, McGraw-Hill Publications

Mr.

coming

are

that

out

Vice-Chairman, NPA Agriculture Committee;

prices

dumping

believe

5

5

7

7

9

-

9

•

with

to

The

Financial

Chronicle)

:

DIEGO, Calif.—Arthur Ci
has

First

become,

associated

California

Company
Incorporated, 625 Broadway. Mr.
Hoelck
years

was

formerly

for

many

with McCormick & Co.

Number 5302

Volume 179

The Commercial and Financial Chronicle

...

(901)

Bank

of

Los

stock from

News About Banks

000

by

Angeles, California,

its

increased

$30,000,000 to $37,500,-

NEW

BRANCHES

NEW

OFFICERS, ETC.

Bankers

and

National

Citizens

cer

Vice-Presi¬

ent

as

Assistant

an

New York

Company,

Trust

Manufacturers

announced

was

of

of

Secretary

if

Desert

National Bank of Englewood, New

officers in the bank's

Jersey, effective Feb. 10 increased

Mrs. Kae

are

its

Personal Loan Department.

Mr. Connell joined the Chatham

.

National

Phenix

in

Bank

1931

stock.

If

the time

at

the

of

institutions

two

in

He

1932.

was

as

National

advanced

was

Division
in

Head.

Assistant

to

Mrs.

will

Kae

be

charge of the Accounting Divi¬

title

and

ment.

The

appointment of Mr, Henry
member of the
Advisory Board of the Real Es¬
tate
and
Mortgage
Department
also announced

Feb. 25 by

on

Mr. Flanigan.

ton

Com¬

Trust

&

elected
Selden T. Williams to the advisory

pany,

board

of

its

it

Feb. 23

on

in Chester and

Hook and the

will

Edwin

is

Loan

11.

Arthur

and

Jr.

Cashier

Assistant

to

Credit

both

Supervisor,
Office

Midtown

•

if

the

stock

from

was

and

Ritt, President of The
Bank
of
St.
died

13.

Feb.

on

National Bank of

Danville, Kentucky

increased

was

from

$100,000

stock

the

of

stock

capital

common

dividend, effective Feb.

by

$200,000

to

a

10.

if

if

Florida

Or¬

lando, Florida, has converted into
Trust

Colonial
York

Directors

bank's

$200,000

transfer

that

Surplus,

Undivided
if

if

The

bank

National

Florida

title

the

under

Bank

at

Orlando, effective Feb. 10.

to

by

❖

a

has

Profits.

been

President

if

if

Watrous

Dr.

the

that amount from

of

institution's

of

the

voted

today

to

national

a

New

Company,

announced

City,

add

President of

named

of

the

to

Bank of Dallas effective

of

post

Federal

the

Reserve

the Lincoln Savings Bank, Brook¬

Board of Directors of the Federal

lyn,

luncheon
officers

was

and

a

Bank

of the

Reserve Bank,

honored
at a
tendered
him
by
the

Y.

N.

bank,

with

the

come

hand

the

were

last

the
sort

of

Reserve

important

been

of

who retired

banking

approved

by

to

Irons

Dr.

has

post

the

Board

of

They want
the

and

the

By

are

if

sale

of

-

%

Worth, Texas,

Post, Vice-President
of

N. Y.

and E. J.

The
White

capital

mon

County

in

Secretary
Company

Plains,

increased

stock
if

O'Neill, Assistant

The

if

common

25

Junction, Colorado

of service,; respectively,
'

week.

main

office, - Mr.

the

from

auditor, was first elected




an

■

„«-

as

offi¬

Feb.

and

from

more

the govern¬
assuming more

been

them

for

the

as

along.
All of this takes
money and leads to more in¬

more

flation.

"Yet

try's

know that if

we

life

business

is

our

to

solid foundation and if

coun¬

have

we

are

a

to

continue to grow and, prosper, we
have

a

dollar

re¬

purchasing

What I do mean

of 1940.

power

dollar," Mr.
sound dollar, I

deflation and the

the

to

sound

By

is the preservation of
In

the current
the dollar.
simple terms, sound money is

a

dollar

that

chasing

of

power

has

the

same

today,

power

pur¬

tomorrow,

week, and next month. It is

$200,000

Bank

want and work for

it

before

to

was

Grand

increased

$300,000

-

*

The

*

/

«

">

*•*

Security-First Natl

by

a

11.

lieve that the present
tion

be¬

Administra¬

making honest efforts to
stabilize the purchasing power of
our

dollar; but in the end its suc¬
or failure will hinge on what

strengthen
the

that

bank

services

tional

effort

nation

a

than

active

facing

sound

decisions

Our

wiser

be

never

can

educa¬

of

behalf

surely

and

us,

the

of

understanding

our

problems

100-million

our

by

on

policy.

monetary
as

to

but

customers

the need for wisdom and care has
been

never

than

greater

today.

After

Federal

budget

a

Gradually the
be brought

must

Sound

balance.

until

money

require

a

can¬

that is done,

balanced budget in turn

will

willingness on the part

of many segments
tion

to

of the popula¬
stop seeking benefits for

themselves from the Federal Gov¬

"Thus,
a

our

ability to maintain

sound dollar will hinge in large

is

one

cause

without

impossible

other.

should

in

must

function

times

bad

chal¬

We

a

ade¬

well

as

as

We must learn to conduct

affairs without

that

calling

the

on

will

we

have

to

grants

credit

during times of ad¬
rather than being so

justment

with

concerned

credit.

In

this, we
banking

of

the restriction

order

to

accomplish

going to have to view
'long pull' and con¬

are

a

on

structive basis."
Mr.

that

told

Reese

there

is

trustmen

the

help to inform the

what 'sound money'
them—personally and
individually—and then we must
do our share by actively pressing
people

of

to

means

the

the

certainly

for

Bonds,

States Savings

of United

sale

Bonds is important in

sale

of

extent that

make

for

banking an attractive place
capital and an attractive

new

for

career

banks to grow in line
population and economic
growth of the nation.
enabling

having

"By
we

Savings

'What

Bonds
They

can

the

banks

brake on
part of the

a

are

the

to

answer

are

char¬

that

continue ;to
play its large role in the business
affairs of this country in such a
way

banking

will

that the people will be our
because
they have been

friends

well

This

served.

intelli¬

the

is

gent way to preserve and extend
the system of chartered banking."

Form D. G. Rosenblat Co.
SAN

inflation.

leadership,

strong

confident

be

can

Ronald

of

out

com¬

with the

place it in the hands of the public,

debt

and

intelligent

petent people.
Both of these fac¬
tors
are
major concerns in

and

ment

operation is

extremely important if we are to

actually at¬

sound money.
To the
they keep the govern¬

taining

a

"Profitable

he said.

tered

should

"We

who

man

asks:

I do about inflation?'"

Emphasizing that banking's inresponsibilities have
it imperative to attract the
best talent into the field, Mr.

the

President of

Kaehler,

that

announces

Messrs.
M.

and

Rosenblat

G.

Ex¬

Stock

Francisco

San

change,
Daniel

Calif.—

FRANCISCO,
E.

S.

limited

Huberman have formed a

creasing

partnership under the firm name
of Daniel G. Rosenblat & Co., ef¬

made

fective Feb. 23,

"It

said:

Reese

bankers

to

take

will

maintain

a

real

strong

will

be

Dealer

high standards of bank manage¬
ment.
Adequate salaries and op¬

change.

of

programs.

Real training courses
carried

be

well

as

phases

on

in

small

large and should

of

the

banking

business, not just daily employee
routine.
It is important to have
just
in

level of competence
in industry.
We
remember that it is people

as

high

banking

must

a

as

a

on

the

of

Floor

The offices

the

Ex¬

of the firm
Street.

Halladay to Admit

people into the field; but, bef-

should

a

will be located at 57 Post

portunities for the future will
help us attract the highest caliber
yond this, we must train for lead¬
ership with sound educational

Mr. Rosen¬
member of
October, 1952,
Specialist-Odd
Lot
1954.

blat, who has been
the Exchange since

banking system and carry on the

all

into

as

huge untapped
cess
market for their services, just as
the people want.
there is a great opportunity for
"This places, a huge responsibil¬
banks to provide other services
ity on us as bankers.
It is up to that the public wants and needs.
us
to provide individual leader¬
"People want the
services we
ship of the highest type, not only have to offer, and they are will¬
by increasing the usefulness of ing to pay a fair price for them,"

as

ination of inflation.

,

1

I

is

cover

ernment.

.

o n a

of

masses

will

government for assistance. It may

sound dollar

a

attained.

be

can

banks

achieved,
however, only through the elim¬

and

in

We

production

the

to

risk busi¬

be

dependably dollar.

not be assured

if

stock dividend effective Feb.

bank's

Post started

com¬

capital stock of the

First ; National

Associated, wit.h

its

effective

15, from $1,750,000 to $2,000,000.

Vice-President, completed 30 and
last

the

Continental National Bank of Fort

Trust

years

stock

people.

system

great

our

distribution

our

public opinion and public
action. The American people must

a

new

of

and

good.

on

"Sound money can be

*

now

retired.
^

or

for it.

go

years

a

,

people

asked

know that the

we

more

has

next

*

the

people

this

government, and

System in Washington.

the

force

to

on

whether

demanding things that

are

purchasing

selection

The

first:

taking them in that direction.

are

Governors of the Federal Reserve

William W.

the

least today

people

Vice-President of
Lincoln's 25-year club which
members, 18 of whom

thing

whether

turn

succeeds

Federal

Gilbert,

1946,

and it is hard

began

mean

R.

benefits

quately

of

advantages

the

and

part

been

road for the

same

came

powers

scheller, President and Frederick

has 53

which

have

we

twenty years;

tell

to

do not

the

Bort-

Seifering,

country,

said.

.

century

Erwin

of

Sept. 1, 1953.

wel¬

to

quarter

new

member

club

Mr. Tasch
appropriately

watch

On

Vice-President

a

President for 14 years

presented

gold

a

inscribed.

this

Reese

R.

John

the

"In

Bank, since April,

his completion

upon

Irons,

banks
active educational
says

the

must

Dr.

opportunity
of pri¬
vate banking which has helped to
build this country and spread the
great

a

recognize banking

ing inflation," Mr. Reese asserted.

the 11th District, Federal Reserve

years' service with the Bank.
W. Hooper, President of

of 25

Feb.

on

18.

of Trustees

group

announced

level—

sight and intelligence
lenges that lie ahead.

all, national security and
national solvency are identical be¬

February

15, J. R. Parten, Chairman of the

an

of

bureaucracy, creeping paternalism,
creeping socialism; and the natu¬
ral result of those things is creep¬

responsibility
of Dallas

Irons

employee of

Tasch,

Conrad

Newark,
Newark, Ohio.
"Almost all the
world is suffering from a creeping

ment

if

H.

Na¬

Park

tional Bank of

At

Orlando,

at

Bank

if

if

Arthur S. Kleeman,

the

Reese

D.

Everett

$1,-

increase
dividend

is

President of

its

National

Farmer's

effort.

Reese

Mr.

going down the

Avenue

7th

at

of

Minnesota

The

The

and 39th Street.
*

stock

an

educa¬

active

$

from

at

through

in

Bank

of

sound money,

tional

increased

ad¬

vantages

effective

National

a

the

and

if

capital

by

Paul,

William A. Brindley,

Cashier and

if

Indiana

Albert L.

from

on

services

bank

capital

stock,

new

$240,000

Midway

to Assistant
Assistant

Rudolph

Vice-President

nities

$60,000 by sale of new stock.

Office

Main

at

their

commu¬

Ohio

Dayton,

of

common

Old

made

Department

Cashiers

of

common

sistant

sistant

"sell"

by

200,000 to $1,500,000 effective Feb.

George R. Montgomery to As¬
Vice-Presidents from As¬

and

sale

The

in

that

9,

should

$5,000,000 to $7,000,000

Evansville,

bank's

the

of

Company

if

Accounts
at
Main
Office.
Other
promotions
announced were: Henry J. Dengel
charge

Receivable

branches

as

its

by

as

Vice-President,

Assistant

Feb.

banks

Clifton

operated

Trust

York City on

Feb. 15.

of

appointment

Emery

Mr.

dent.

and

Bank

Vice-Presi¬
Emery, formerly an

L.

Conference in New

stock from

if

the

announced

mid-winter

broadened

Trust

of New York, has

Trust Company

in

have

strengthen the

the

Bank

Commerce, Toronto, Canada.

services

Associa¬

Bankers

the

told

Heights Na¬
Heights,

Clifton

by

American

tion,

increased

National

Public

Direc¬

elected

Canadian

The

of

Sound Money: Reese

President of

Reese,

The Winters National Bank and

an¬

was

Gersten, President of

E. Chester

The

the

in Marcus

branch formerly

one

Bank

be

one

D.

pany.

by N. Baxter

sf

tors

been

have

ardson

"We

more

Everett

Fidelity-Philadelphia Trust Com¬

Jackson, Chairman.
*

to
❖

sound money.

National Bank. The
formerly operated

by The First National of Chester,
one

graduate

States

be too much education.

never

Bankers Association

broadened bank

on

Street

Court

50

Office,

(Brooklyn)
nounced

has

York

New

effort

Clif¬

and

branches

operated

Bank

Chester

of

Heights

two

tional
Chemical

said, "resulting in an increase of
$1,330,000 to the capital funds of

should "sell" their communities through an

locations of The First Na¬
Bank

on

of the American

President

Trust
Company.
Branches were established in the
tional

on

Central

ness

Philadelphia
former

G. Waltemade, as a

Educate Public

merged

charter

5,000

completed

in the various

that system if we meet with fore¬

under the
of
Fidelity-

Pennsylvania

sion of the Personal Loan Depart¬

-was

$8 million, total deposits of over

Heights,

Clifton

Bank,

already

Banking,
recently offered, it
School, School of
was
stated in an announcement Banking of the South, and Pacific
on the same day by Elden Smith,
Coast School.
In addition, there
are a number of state
President.
schools; and
"The sale of 35,000 new shares others are being organized.
But
has been completed," Mr. Smith we must remember that there can
issue

com¬

will

Insti¬

Almost

the

trie capital

on

Chester,

Pennsylvania,

American

schools

15,

and

Pennsylvania, and Clifton Heights

in the Personal Department. Later
she

bank

capital structure of some

a

those

The Graduate School of

Feb.

books

Trust

J. D. Leitch and James A. Rich¬

Secretary

a

is

combined

the

Philadelphia, Pennsyl¬

Company,

Chester,

turers Trust in 1935

consolidation

the

have

courses

National

the bank."

future.

have

Trust

Fidelity-Philadelphia

Manufac¬

to

came

is final,

.

vania, The First National Bank of

April, 1953.
Kae

if

in

advanced to Assistant Secretary

Mrs.

#

the

Banking.

the difficult

stock

pleted,

of the

merger

if

_

of

of

tute

15.

its

sought at meetings to be
near

bankers

Feb.

on

*

,

Manufacturers Trust

to

came

be

substan¬
all

Savings Bank of Riverside, closed

in

Feb. 15.

on

A

members

office

Citizens

Smith,

Elden

and

13.

Main

the

Currency

Citizens,

called in the

$540,000 to $648,000 by sale of new
1

and

will

a

of

Over 100,000 bank people are now

Cali¬

from

tained before the merger

from

stock

capital

common

River¬

in

offices

proportion

14th office of

banks, which must be ob¬

both

tial

the bank, the Security office, was
consolidated
with the
Riverside

Approval of the stockholders of

Valley

Northern

by Horace C. Flanigan,
President. Both Mr. ..Connell and
23

ruary

of

Citizens

number

now

&

D.

Bank,

President

#

if

Citizens

The

was

in White Plains.

messenger

Feb¬

on

office,

Mamaroneck

a

Trust

C., it was an¬
nounced in a joint statement by
O. A. Torgerson, President of the

O'Neill, currently in charge

the

first

the

of

Washington,

position since 1950.

Mr.

•

and Mrs. Doris Shearer Kae

dent
as

Assistant

an

Comptroller

in 1926 and has held his pres¬

Appointment of Harold J. Con¬

.

received

has

fornia

couraging to note that

Springs, Cathedral City and

engaged in banking are now mak¬
ing use of some of that system.

pro¬

of Riverside,

Savings Bank

able the best adult educational
system in the world, and it is en->

side and San Bernardino counties

Required approval for the
with

of

resources

$

posed merger of the Desert Bank

CAPITALIZATIONS

nell

Palm

Indio.
if

if

total

The Desert Bank has offices in

stock dividend effective

a

million,

$130 million.

over

Feb. 10.

CONSOLIDATIONS

REVISED

$120

capital

common

25

V.

Benjamin
member

of

the

Harrison,
New

York

Jr.,
Stock

March 1 will be
partnership in Halla¬
day & Co., 14 Wall Street, New
York City, members of the New
York Stock Exchange. On Febru¬
Exchange,
admitted

ary

on

to

28, Louis Neilson, member of
will withdraw from

the Exchange,

the firm.

accomplish—not systems, nor
institutions, nor rules.

James M. Davies

"Along with their own training
programs, banks should encourage
and take advantage of the won¬
derful educational facilities of the
ABA and other banking organiza¬

Francisco,
Co., passed
away on Feb. 15.
Mr. Davies for
many years was head of Davies &
Co. and its predecessor Davies &

who

tions.

We in banking have

avail¬

James M. Davies, San

partner in Reynolds &

,

26

The Commercial and Financial Chronicle

(902)

Continued from page

the

5

Commission? itself

such
the

sanguine

a

future

will

take

attitude toward

earnings

outlook

for

these properties.

Observations...

At

best

consummation

reorganization

of

plan

or

yielding, but price doubling and trebling, life insurance stocks in

souri

Pacific

recent

a period
of 60 days
17, 1954 for the filing
of exceptions and replies to ex¬

Anticipation

Double

The

overlooks the fact that the size of the past return

past yield

on

influenced

was

by anticipation of the future, and that this anticipation may have
since become realized. Thus, below-average yield may have been
caused

public's correct anticipation of the company's
growth; but after such growth has actually and terminally oc¬
curred, it is not logical to capitalize the present price of the now
growth-less stock at the former growthy yield.
Although Mr. Genstein deprecates forecastability, and be¬
lieves his suggested
techniques avoid it, his formula method
actually implies forecasting.
For not only is prediction neces¬
sary in the estimation of earnings, which is properly basic in any
method of appraisal, but also assumptions must be made about a
management's dividend policy, as well as. the public's valuation of
the dividends which are actually paid.
by

the

£

The

other

if

before

volume

us

If

1

a

'

new

is

ceptions
as

handbook,

of

none

seem

come.

proposed report.
will be many

there
the

interested

parties

entirely happy with the out¬
Then there will be hearings

before the Finance Division of the

ICC, and a long wait before their
plan
is filed. The
Commission
plan can be similar to, or entirely
different from, the proposed re¬
port filed last week. Then will
come the usual rehearings by the
Commission followed

by the pro¬

tracted trudge through the various
courts. It is well for any

the timing of a

to

as

investment

the

to

Presumably

optimists
possible re¬

organization to bear in mind that

YOUR INVESTMENTS, by Dr. Leo Barnes (1954 edition, American
Research Council, 11 East 44th St., New York 17, p. 94, $3). This
*

is

how-to book for the expert as well

a

much

the lay investor. In fact,

as

Urges Clarity in
Corporation
Annual Reports

the

of

simply written content is surprisingly sophisticated.
"While no magic key is provided, there are a wealth of worthwhile
observations on the following important current facets of invest¬
ment activity: "How to get started on your investment
plan," "To
what extent should you let others invest for

mutual fund," "What

a

profit
1

(than

other types

opportunities?",

you?", "How to choose
offer

stocks)

common

"How to profit through market swings,"
securities," How to handle your stock

"How to decide when to sell

transactions."
One

■

of the

manifestation

author

objectivity is

s

in his

seen

arrangement of setting forth the respective pros and cons on each
topic.
For example, in discussing advisory services, he first lists
their advantages, as objectivity and low
cost; and then follows by

pointing out the alleged

drawback that one service is likely to
lead to another. In the case of preferred
stocks, after listing their
advantages, he points out /that this investing vehicle shares the
common stock's risk but without the
gain potential. In the case of
municipal bonds and other tax shelters, the author first cites their
good safety record and high after-tax net yield; which factors he
objectively follows with emphasis on the drawback of illicjuidity
and

uncertain

freedom:—freedom

from

insurance of

worry;

cash

take

to

advantage of market downswings; and release from the foibles
bound up with ordinary market psychology.
On the "con" side
listed: the cutting of profits as well as
risks; the lesser benefit
rising than in declining markets; their poor protection against
inflation; and their making for loss of income through the cur¬
tailment of dividend income
during rising markets.
are

in

State College School of Business

points to need of simplification
of financial statements.
In

article
appearing
in
Topics," publication of
the Michigan

both

of

an

cussed

in

Suffice
the

view

plan in

will

space

this

of

time

be

dis¬

week.

next
to

policy to reorganize a re¬
ceivership railroad by increasing
its debt and overall
capitalization.
This policy, which in most in¬

resulted

Under
the

in

and

in

1954.

poration

to

statement.
sense

Contingent

for

publish
It

it

is

to

interest

annual

an

only

common

publish

that

one

will engage the
sympathy of the
stockholder while informing him.
In

most

annual

phasis is

reports

the

"Clarity
means

of

be

can

brief

a

achieved

of

principal financial facts in the
accounting statements. This is an
important means of assisting those
who

are

not well versed in the in¬

of

financial

appears

serves

termin¬

to

the

need

in

these

volumes

"giving all the answers," they

can

in their honesty abstain from
be highly serviceable in improv¬

ing the investor's "playing by ear," and, at the
fying his constructive goals.

very

artists

with

the

With

and

the

printers,

ing to enlist these extremely
pressive devices for making
nancial

statements

the public.

reports

sharehold¬

contact
reader.

there is really no excuse for fail¬

corporation

annual

personal

commercial

of

of
Dr. Stuart

B.

Mead

ers.

Says Dr.
Mead: "It is obligatory for a cor-

\

Joins First California
LOS
O.

ex¬

The

Financial

ANGELES, Calif.—Albert
has

First

become

Daniel Reeves & Co. and

Hammill &

Lester, Ryons Adds
(Special

LOS

to

The

Financial

Mitchell has been added to the

J.

of Lester,

staff

South
the

Hope

New

Stock

Ryons & Co., 623

Street,

members

and

York

Exchanges.

Los

He

Adjustments. The common
given a potential contingent

•(whether forward
a

moot

question)

minable

in

rities, with the
the

old

justment

•sharply

when

secu¬

exception
the

and

In¬

Northern

pushed
the

the

over

Practically

notable

bonds,

inter¬

System

common

ternational-Great

started

this

proceeding.

•all Missouri Pacific

of

backward is

or

Co. and Dean

Witter

Ad¬

forward

release

news

first

tickers.

On

sober deliberation, and as
the details of the plan were made

.more

available,
preferred
bonds
It

the
stock

and

retreated

had

pated

that

Commission

there

a

would

plan

larger
be

junior
quickly.

been

would

of

Pacific

the

rather

generally

-liberalization
that

Missouri

antici¬

be

the

proposed,

capital

and

structure

recommended.

doubtful, however,

some

previous

It

if there

is

were

many who had expected the ex¬
aminers to go so far in this direc¬
tion as they did. It is
proposed
that the new capitalization be
set

at roundly $810
million, or nearly
.$200
million
higher than
that

allowed in the previous
plan tHat
'■had been approved
by the Com¬
mission and the courts. Even with

v4his

substantial

increase

proposed capitalization it




in

through
and

the

graphic aid to understanding is
Com¬

pany's 15th Annual Report. In this

DENVER,
Bates has

Management
Sherman

Colo.

—

present value

was

in¬

company
exercisable if,

when,
at,

prospect.

The j same

resorted

to

part

the

of

to

eke

device

out

I.-G. N.

the

was

small

Adjustment

claim not satisfied in

new

securi¬

WHERE IT

CAME

FROM

ties.

Quite obviously the examiners
in arriving at their
proposed new
capitalization relied fairly heavily
on the propositions that
earnings
for a period of years have to an

AND WHERE
IT WENT

*

extent been understated
by virtue
of a degree of

overmaintenance,

that

further

dieselization

property improvements
over

sult

projected

the next five years

in

and

will

significant operating

re¬

sav¬

ings, and that growth character¬
istics

of

the

continue

service

area

will

to

enlarge the traffic
potential of the System. Unfor¬
tunately, with respect to the earn¬
ings status of the property the
examiners
them

as

relatively

did

part

not

of

dismal

have

the

earnings

formance of 1953. There is

in

the

ous

was

not

railroad

DIVIDENDS TO

before

fecord

a

STOCKHOLDERS

the

TAXES

2.6%

question in the minds of many
analysts as to whether

.

co7

1.5/fe

per¬

seri¬

AND RETAINED
|N

BUSINESS

Courtesy of Beatrice Foods Company
An

intelligible picture of Beatrice Food's

sources

Co.

and

uses

Jared

Corporation,

Street.

earnings reach, and
substantially higher
levels than those
prevailing or in
stay

&

,

M.

joined the staff of F I F

new

warrants

pre¬

With F I F Management

An excellent example

common stock or to fill
out the entire claim of the I.-G. N.

terest

was

fi¬

for the old

the middle of last
week, marking
of
one
more
step

of

Angeles

viously with Edgerton, Wykoff &

Missouri Pacific

•completion

Chronicle)

ANGELES, Calif.—Francis

Fiscal Year Ended

any

Shearson*

Co.

February 28, 1953

possible to find

affiliated

California

least, in clari¬

The proposed examiner's
report
■on the Missouri
Pacific reorgani¬
sation plan was released around

I

Chronicle)

Company,
Incorporated, 647 South Spring
Street.
He
was
previously with

meaningful to

found in the Beatrice Food

to

Nelson

with

bring about

graphic techniques and means of
reproduction available to modern

greater clarity

used."

The fa¬

r o-

institu¬

receipts and expenditures, though
other means can just as well be

in most mod¬

reports.

Exchanges.

instance, pie graphs * make in¬
stantly clear the whole matter of

by

elucidation

the

non-technical

the

and

San Francisco Stock

(Special

closer

tion, stresses

Hooker & Fay to Admit

ment.

As¬

at

Exchange,

on March 1.
Mr. Mills will make
his headquarters in the firm's San

em¬

ice, Dr. Stuart

counting

a part¬
Reynolds & Co., members

of the New York Stock

the accounting state¬

on

miliar touch

Ac¬

Calif.—Ed¬

$375,177,830,
SAN FRANCISCO, Calif.—Gifincluding equipment obligations ford LeRoy
Troyer will be admit¬
outstanding as of Dec. 31, 1952, ted
to
limited
partnership
in
but not allowing for an indicated
Hooker & Fay, 340 Pine
Street*
rise in equipment debt last
year members of the
New York

Public S

of

FRANCISCO,

fixed interest debt of

corporation

fessor

in

ner

proposed plan
System would have total

graphs,

P

SAN

ward V. Mills will become

last week's

new

and

sociate

Reynolds & Co. to Admit

recurring fi¬
difficulties, has been in Francisco office, 425 Montgomery
disrepute for the last two decades. Street.

ern

Mead,

$485,791,851.

nancial

Business and
e r v-

to

analysts the
respects harks back
days of the 1920s when

was

stances

$514,134,452

In comparison, combined

of the

that

say

some

State

of

more.

System properties as
of
Dec.
31, 1952, exclusive of
claims for unpaid interest, came

many

to the old

it

plan

this

at

ology.
A carefully worded dis¬
cussion, often illustrated by charts

College,

or

The details of this
proposed re¬

organization

in

total initial debt of

a

debt

terpretation

School

debt
would
be
outstanding -at
$139,956,622. Thus there would be

ment.

"Business

to

While

Michigan

"voluntary"

B.

markets.

And, coincidently, in this work Dr. Barnes gives Formula
Planning the two-edged treatment. As the "pros" he cites "the
fifth

Dr. Stuart B. Mead of

so-called

compromise readjustments almost
invariably wind up in the Su¬
preme Court before final settle¬

Mis¬
years

Feb.

from

future yield

predication df the estimated

some

There is

off.

years?

appears

for

any

the

even

.Thursday, February 25, 1954

..

of income

4 4 4

Volume 179

Number 5302

.

.

The Commercial and Financial Chronicle

.

(903)
Continued

from

the end

3

page

?f the steel strike in

-1952 to the middle of 1953
a

be

-

maintained

Can Be Sold in 1954!
;

sorbed

-

v?

•

v

-

•

•

,

»

been

strike

1954 and to 5.3 million by mid1955.
This would amount to a
largely slightly over 30% _ scrappage of

large portion of this de-

a

before

even

of the

because

and

profit'1 margins.

reduced these stocks

return to normal

was

will
the

marketing

the value of such

cause

would be 20 to

-on

a

the

steel

great

later

less than

.the'hew model.
With

the

introduction

models, customers
fit to the

same

excessive

■

"*

their

new

This

as

buyer

his

net

$100-$200

who

is
a

of them will revert

used

car

finds

result,
to being

to trading in

or

new

a

to

the

to

perhaps

As

some

on

on

now

outlay

buyers

these

return

shock

a

higher.

less often

new

allowances

-

cars.

comes

car

that

of

The

market

for

?nA

a° ™on

new

consumer

great bulk of
from

come

must

be

stock

new

at

ana

of

that

cars

high

a

since

buyers

car

rnoie ie

ment

total scrappage at

,

good

is

that used

enough

The

year

As

down

prices are

the

encourage

hew

a

net

Growth

car.

j0

pro-

back to

will

for

inventories

st0cks

satisfied,

of

^ot^

than

more

one

and some cars are owned by
business firms or were in used

in 1954.

Such

inventories

car

There

will

be

of

further

growth in

"

ownership

dealers,

car

household

per

it

but

will be closer to the long-run av-

annual rate since 1929 of 0.8

erage

carper

rate

100 households than the 3.4
the

of

should
latter

be

period.

postwar

remembered

rate

that

of the reduced level of

cause

It
the

possible only be-

was

own-

ership caused by the high amount
of unemployment until World War
II

the

and

duction

shutdown

during the
Will

Replacement

of

car

Provide

Bulk

of New Car Buying

of

will

the

of

provide

market

from

the bulk

now

-

those durables

'

ownership is already high.

where

the

for

on

of

rate

This is

"particularly true for cars, where
scrappage has been held down in
the postwar period by the short

of

event

substantial

In the 1937-38

ample,

buying

-

<

about 50%

by

from the

of 1949 made possible by greater
ent

the value of

to

requiring

cars

.

.

to scrap

makes

.

repairs,

decision

worth

be

and
t

it is more economical
them. Usually the dealer

the

to

on

selling

will sell the
All

of

the

the

expense,
car

the

the

will

so

however,

At the
we

situation

normal

back

continue

where

sumer

this

business

activity

and

the

to

cars

were

these

of

registered.
this

sold

or

are

to

a

dealer. In mid-1953, there
still slightly more than 11

million

war

in

traded

are

junk

models

up

have

been

adequate for the Spring market,

ever

caught

up

consumer

in

with the
demand in

Because the market for

so

If

we

prewar

return

rates of scrappage

age,

reduced

the
to

for

number

7.8

million




employment

and growing

with

and
a

pre-

cars

of

that

far in

the

consumer

have

to

readjustment

still

buying of cars

primarily

more

durables,

a

normal

market conditions. For other

B.

occurred

economy.

and

little

because of the readjust-

employment

would be
The expansion in employment
by mid- and ^incomes which took place

If

as

+ul

i

.

(Special

to

The

Financial

Chronicle)

Tenn .—Flavius

BAKERSFIELD, Calif.—Jack G.

Martin^ Jr., is with Mid-South

Gray has become connected with

NASHVILLE,

Securities

American E. F

Company,

Hutton & Company, 1417

Seventeenth Street,

Trust Building.

Public

Utility Securities
By OWEN ELY

Carolina Power & Light Company
Carolina

Power & Light Company serves electricity to 216
communities, including Wilmington, Raleigh, Asheville and Goldsboro,in North Carolina and Florence and Sumter in South Caro¬

lina.

As the

company's gas business was sold last October and the
small, it is now virtually on an all-electric
Electric revenues are about 42% residential, 17% commer¬

water business is very

basis.

cial and 28%

industrial.

kwh.

below

is

dential

well
use

per

While the

the

The average residential rate of 2.20c per
national

average,

and the

resi¬

average

of 3,061 kwh. is above average.

annum

is

largely agricultural, there has been a sub¬
industry coming into the area, particularly
textile mills, so that industrial business has more than doubled
since 1947. Sales to textile companies now amount to about 14%
of total revenues but the business is quite well diversified. Since
area

stantial amount of

new

culties experienced

Carolina

the

by some of the New England mills.
find it most economical to run on

mills

three-shift basis even when operations may

days

Some of
a

two

or

be cut to four or five

week.

a

1942 Carolina Power & Light had an equity ratio of only
14.6%, following heavy plant write-offs. Since that year the com¬
pany has spent some $120 million to raise the equity ratio to its
In

current level around 32%. The company has now achieved a good
credit rating, and its finance program will be designed to maintain
the equity ratio at or above the present level.

The company plans to spend around $26

million for
1955-56,
$76
program
will
include some additional capacity to sell power to TVA,
latter's program of building steam plants has now been
tion this year
of

some

and $25 million each in the
million.
The construction

years

construc¬
total
probably
since the
curtailed

or a

by the Administration.
No financing was done in 1953 and it is understood that only
about $5 million financing will be required this year.
This will
leave about $32 million of new money to be raised in the next two
the balance of construction needs being met through depre¬
and retained earnings.
The three-year program will re¬
quire about $8 million equity financing (about 200,000 shares of
the present stock or about l-for-10, or 400,000 shares of split stock).
One reason for the small amount of equity financing that has
been required recently is the relatively low dividend payout. In
the year 1953 $2.99 was earned on the common stock and $2.00
was paid,
making the dividend payout about 67%. (However, a
5% stock dividend was also paid a year ago.) According to Presi¬
dent Sutton, the common stock will probably be split 2-for-l this
year, if stockholders approve. If this is done, there will probably
years,

ciation

be

further

no

stock

dividends, but it seems likely that the cash
then be increased moderately.

dividend payout could

Carolina Power & Light acquired Tide Water Power

Co. about
Associated Gas & Electric
in badly rundown condition. A considerable amount

-

•

general business activity has already taken place, the outlook for
least

a

seasonal

expansion

was

money

Tide

in

Water,

an

old

has already been spent to rehabilitate it and over the
have to be expended.

next three years some $40 million more may

reduced

to

After the property was taken over, rates were
better relation to those of the parent

bring them in

this has resulted in a substantial increase in busi¬
ness.
The management believes that the money being spent on
Tide Water will bring good results.
company,

In
electric
of its

and

1952

Carolina

output

Power &

through

requirements.

hydro

1953 was

a

Light generated about 20%

of its

plants, and also purchased 18%
bad year for hydro, but the com¬

is installing additional steam generation which will reduce
The construction program includes
110,000 kw. in 1954, the same amount in 1955, and 150,000 kw. in

pany

the proportion of hydro power.
195-3.

The company's

seems

1 ^ely, the worst of the decline in
at

of

ago.

years

property,

con-

readjustment was required because buying
in 1953 was not at abnormally
high rates. Some curtailment has
sumer

in-

Reasons for Adjustments in
Employment and Income

associated with
215 West Sixth

Joins E. F. Hutton & Co.

(Special to The Financial Chronicle)

this year, however.

readjustment

been

to

in-

are

stable ment in general business activity

models

to

cars

summary,

seems

con-

sumer

consistent

chronicle)

Deferred maintenance in the Tide Water area should be cleared up

generally

goods

position

to Staff

two

makes of •

maximum

,,

financial

LOS ANGELES, Calif.—Charles

H.

With Mid-South Sees.

weekly

con-

they
backlog of

comes

current

Other

durable goo.ds is so sensiat
this
vulnerable stage
today, tive to dovvnturns in general busiOnly the, exceptionally clean cars ness activity, manufacturers and
traded in are resold.
Of course, distributors of these goods have a
in any one year not all of these great stake in the maintenance of
prewar

the

the down side.

since

the

production rate of 107,000 for the
industry as a whole. Some production is currently required to
increase dealer stocks of a few

of new cars
with
changes in

purchases

durable

on

1948.

pres-

are

greater degree both on

in

lnsteacl °*
Gctober and Nomember dates before the war.
PXfn a ™odest rlse from the 355,000 retail sales of January, however, would be sufficient to

ready market for the
automotive production

fluctuate

general
and

dealer

time,

consumer

a

for junk.

a

availability of steel.

the

reconditioning

were

increased

the

scrap

purchase of another car. If there
is not enough market value left
to

■

costly

because it is traded in

car

'

For those

therefore,

-

?er^beL 1953 and January, 1954,

low that there

still

car.

impos-

car market is holding up to ex-

cars

new

be

PSftat ons until the March-April

was

a

will

ex-

normally reduced close to 10% of

-

It

for sure whether the

cars

of

age

cars.

say

results are in. lhe rise from Janfirst half of 1937 to the first half uary-Eebruary buying rates this
of 1938.
For the full year 1938,,year ls no ,b Je
0 equ?
the drop was nearly 45% com- lncrease
that occurred prewar,
pared with the year 1937. In 1948- Partly because many new model
49, consumer stocks of youngerr?
we5e made in1PKe."
cut

until they are eight years of age.
By that time, the market value is

-

March-June.

sible to

recession, for

consumer

was

to

of the plants are among the most modern and efficient,
operations have continued on a fairly active basis despite the diffi¬

t

,

declines

Scrapping of cars
usually does not begin in quantity

supply of

•

t

r

01
rlur? :°
A Buyers Market
was higher than any other year in
The currently slower rate of
automotive history. The bulk of consumer buying for cars is partly
new car buyers would come from a return to seasonal patterns
present owners of these cars pro- which always exist in a buyers'
duced in the last five years. There.'-.market. During 1935-40 when new
is every reason to expect that models were generally introduced
people now owning cars under in October or early November,
five years of age will want to consumer buying of new and used
stay in this group as long as pos- cars was at a low rate in January
sible. While these large stocks of and February.
A sharp upsurge
younger age cars provided a large occurred in March and the peak
trade-in market for new cars, f°r the year was reached in April.
they also can act as a temporary About 42% of the year's sales
deterrent to new car buying in were made in the peak period of
the

4

Blyth Adds
(Special

many

nf

retail sales during the period 1949-1953, each year of which
average

in employment and incomes.

•

Replacement of the large stock
durable goods now held by

consumers
i

pro-,

war.

i

was

normal markets.

total

a

would be close to the 5.3 milliqn

I

GALVESTON, Texas — Rotan,
Mosle and Moreland, Incorporated!
National Hotel Building, has
changed the firm name to Rotan
Mosle, Inc.
,

111.—Richard

iv/|

.

Street,

highs above

cars

p

IxOtan, lVlOSIe, Inc.

i

ROCKFORD,

Per^°_^
latter half of this facturers are now generally
decade* At that time, replacement drawing down inventories and

million

xr

(special to the financial chronicle)

Durable goods manu-

*

car,

associated

readjustment

a

,

own

~

outlav

in

813

John A

cars

normal markets

more

inevitable.

scrappage

demand

business

to

CGnsumer

became

not

cars

1949-53

backlog'of

th

.

households

.

become

partner in

a

director of Penn-Dixie

a

has

overtime

volume should be rising to new production has been adjusted
any previous period- downward.
If spending for plant
car
ownership occurs because of
^ the meantime, we must relty and equipment, residential con(1)
increase in the number 0f primarily on elimination of the struction, and consumer spending
households
and
(2) increase in now ancient Prewar models and can be maintained close to current
ownershio oer household
House—
the 1946-48 iriodels, which were levels, as seems likely at the presholdgrowth currently amount to larSely a continuation of prewar ent time, further sharp declines
about 2% a year.
Car registra- styling. Much will depend on the in employment and incomes will
tions per household have moved
ability of the automotive industry not occur. Most of the income
up from the reduced level of 66
induce customers to trade in for loss to date has been in Federal
oer 100 households in mid-1946 to
new cars and used cars
model Government tax revenues. Total
; 90 in mid-^53. Thisdoes not years subsequent to 1948.
personal income after taxes and
mean, of course, that 90% of the
1
This potential scrappage and corporate profits after taxes have
; households own a car.
It merely growth indicates that, under fa- not declined enough as yet to inrepresents the total number of vorable conditions of employment dicate cutbacks in business and
cars
registered divided by the and incomes, it should be possible consumer spending beyond those
! number of households.
Some to sell at retail more than five required by adjustment to more
Drice to

for

.

T

Oregon Building

Street.

eXpanded production
demand
for
g00ds and

additions
and

vulnerable

the

10%

was

substantial

and

boosted

normal levels.

during

reach

Southwest Alder Street.

Joins Lonrads Company

Total

expect services
generally.

to

reason

car

large volume of

duced

cars

Add

with the firm in the Salem office,

Cement Corp. to fill the vacancy
created by the death of Thomas
Preston, former Chairman of
^-be Hamilton National Bank of
Chattanooga, Tenn.

being worked.

was

scrappage close to prewar rates
more

elected

The employ' +ai C?Uqc ment, incomes, and profits created

following

now

these industries

in

higher

~,w^fn
and the July,the
1954, count, and 3.6
million
in
There

Smithe

of Zilka, Smither & Co., Inc.

Dominick & Dominick, has been

durable goods production at mid-

raj-es would be 4.1 million
T

abnormally high rate of 1953,
as high as in 1952.

MacLean Gander,

plant

levels.

adequate

more

2ilka

PORTLAND, Ore. — Eugene T.
probably be 5 to 10% below Porter has been added to the staff

_

still further.

stocks of

consumer

year

expenditures

' of 1953 fas 19% higher than just Kerns has joined the staff of Con- L. Abbe is now
qs™a" ,a™ou"1 ~ prior to the steel strike. Employ- rads & Company, 321 West State Blyth & Co., Inc.,

1a

cent m°dels,

to

..-

wrappage on

Pr^war

goods and

dur-

the

MacLean Gander Director

0f business inventories of durable

must

cars

car

owners

sold

01

mid-1953

in

car.

always be appraised in terms of
The

million

™

to

;the total

7.7

longer bene-

no

extent from

over

used

normal

from

-

of this age, the num-

page for cars

ber outstanding would be reduced

these

de-

con-

car

25%

whole, i

for

For

Goffrier

the prewar cars - outstanding at Record steel production after the
•ditionsas the model year neared the beginning of each year. In adstrike, coupled with a leveling off
a
close. Customers naturally exdition, the 1946-48 models would jn defense requirements and inpect to pay less for a car toward be starting to enter the scrappage creased availability of non-ferrous
.the' end of the model year beperiod. At prewar rates of scrap- nietals, made possible a build-up
a

good.

but at least

The steel strike

equipment.

goods is

a

sales

mand for armaments and for

cline out of their abnormally high

This

extended

an

relative' to

adequate

volume

.,

,

for

Business invenof -durable goods had not

tories

r. 'Uf:

able
as

of time.

period

expenditures

consumer

of

was

nature, however, that could not

27

are

relations with the state regulatory commissions
President Sutton will probably not seek

said to be excellent.

inflationary trends handicap the company.,
earning slightly under 6%
on original cost.
North Carolina may now be considered a "fair
value" state, since a recent telephone rate
decision used this basis.
rate

increases

unless

It is estimated that the company is now

I

,

28

(904)

The Commercial and Financial Chronicle

to limit the inevitable increase in the deficit which would

Continued from first page

result.

out of

had been relying for sane counsel in Washington
appears to have himself fallen victim to one form of
present day madness.

many

mendous

moderate

government operations, and Senator Byrd is right

neither to
to

store

be eliminated from

Treasury expendi¬

surprising action of the Senator from Georgia

adoption of any such plan as that of Sena¬
George would mean probably a doubling of the pro¬
spective deficit, and might mean a good deal more than

large injection of New Dealism.
Indeed, it may prove that even such a change would not
.save us.
The President's repeated avowal of devotion to
the Employment Act of 1946, which as usually interpreted
places responsibility for preventing any or even a moder¬
ate recession directly and emphatically upon the Federal
-Government, has always been a source of uneasiness to us
and, we have no doubt to many others who feel it their

Most supporters of the Senator in this
matter—we
know where the Senator himself

1.1 had

straying

we are sure

from tax remission

the

placed in government bonds, the situation would be
just about where it was before. Plainly, for the scheme

Treasury would have

ing

proposals

proposal rests

upon

good many others, that the counsel of Professor
Burns, now Chairman of the President's Council of Eco¬
nomic Advisers, would

avail to

save us

from

very

serious

At

health of the nation with

that these recurrent

assurance

attacks of chills and fever will be eliminated.
He has

long been known

stantial

and

who

more

are

leader of the

as a

sub¬

very

than

skeptical of the Keynesian notion that
consumers may be counted
upon to spend some relatively
fixed percentage of their income upon current
consump¬
tion—

doctrine which

a

expressly

or

implicitly

constitute the foundation of the notion that

a

seems to
depression

be averted by increasing the "purchasing power"
of the consumer.
If, however, the President, notwith¬
standing the influence of Professor Burns has fallen victim
to such ideas, who now is left to
present effective politi¬
may

cal

opposition to them and their unfortunate economic

consequences?
Let
'•

tor

no

one

deceive himself into

supposing that Sena-

George's proposal and the similar notions

dent and all the others

are

well aware, of
course,
has been advanced in
are

of the Presi¬

genuine New Dealism. We
of the claim that for some time

Washington that

a new

and

essen-

tially different "approach" has been found to the subject
of "pump
priming" — an approach which somehow, ac¬
cording to its sponsors, sanctifies the process. This "new"
idea is

that additional

in the hands of
than
*

We

by

some

well

are

"purchasing power" must be left
consumers or
placed there directly rather

indirect route such
aware

pressed by themj
■

seem

to

in

to

of

these

as

and

we

are

Whether the several billion dollars which the
George
'«*plan, or any of the others for that matter, would leave
in the hands of a
large number of

taxpayers would be
expended promptly on current consumption, and
whether,
if so, the result would be
helpful in turning the business

tide-j-assuming that it is really running
time—we
know

gladly leave to others

the

answer.

For

depend

upon

outcome to
•

than those in
outcome

even

to the

Some

and most

can

to think

almost

they

should expect

the

we no more

In any event, the

infinitely complex

may seem to the uninitiated

or

a

important of these

Treasury. Congress has shown little

interest in trying to reduce
expenditure




one penny

doctrines

time to return to the

was

my

self-examination.

to

the

won

the year

second

in which

in which

war,

the

or

resolved

we

a

to

we

year

halt

the

advance of political
profligacy, or
any other year in which climactic

decisions

or

Yet,

these

and

this is

I

want

are

took

of

years

decision,

key year.
try to tell

a

to

place.

what

you

you

be, because each one of
not only as a
citizen, but as a

leader

whose

valid and

opinion

convincing

associates,

stands

as

among your

your

communities, and
organizations, each one of

your

you

seems

to

me

must

and understand

see

the

import of these times.
A

wise

friend

of

mine,

judgment I respect,
that

whose

told

once

me

since he was a
boy in
Nebraska he had learned to take a
long look at things from every
ever

angle before he made
about them.
the

found

in

his mind

put it, "I al¬
point to walk all

a

around

way

up

As he

it

life,

any

hill

I

could

so

I

have
see

it

from every side."

Every good woodsman does the
thing.
And many of you

job

know

that

before

tree

is

that
is

road

a

felled,

or

a

is

the

first

laid

out, a
camp built.

Now, in these few minutes,
pose

walk

we

around

and

more

tury

about

ago,

they had

force

country

in

a

cen¬

and

our

a

shook them.

them

—

It

depres¬
badly.
It

It scared them.

lost

confidence

in those years that this

in

They

themselves.

It

coun¬

try

came to know the
meaning of
contagious national fear.

there

was

no

other

place to turn for help, they looked
to the government, as
they had a

right

to

do.

During those
years, they learned to turn
more

ernment

gained

at

entrust

their

the

party in

decisions

lives

with

it" attitude.

that

do

did

take

It

than

thou"

in that direction.

and

grew

hard
more

Gov¬

grew.

A

end.

the

"holier

a

This

of

big government was
contagious idea. As the effect
the

depression

began to

wear

off, this Nation found itself fac¬
ing a great war. Again the gov¬
ernment

decisions.

was

called upon to make

And when the

war

tually came, people turned to

out

cause

a

great
look

deal
at

has

of

some

a
a

some

very
of the

already

been

not

yet

been

achieved

but

fighting has stopped.

Second, the tide of government
no
longer is rising; in
fact, the ebb has already com¬
menced.
The striking reductions
in budgetary requirements of
gov¬

and

ernment

a

it

The secrecy
surrounded itself

climate in which

expenses

occa¬

did flourish.

The

third

the

was

became

The fourth

was

com¬

inevitable

than
—

irresponsibility

decline

in

which

entrenched

courages.

As

Now

and

a

honesty

power

corrupts

corrupts ab¬

this

is

by

no

means

thorough examination of the

a

re¬

sults of certain political forces of
which most of you have a vivd
r e c o

11

e c

t.i

o n.

The

climate

is

ac¬

gov¬

Yet,

this country could be turned back
once

and

more

to the spending sprees

the political

orgies to which

the American people called a halt
in 1952.

•

We look forward

something
better
expenditures

we

en¬

counter in

this, the second half of
century.
It is realistic

20th

and

it is

that we can
long as we have to.
commencing to see the
a

maintain
We

details

these

program

as

are

You

emerge.

plans

officials

of

stated

discussed
the

have

heard

by various

government

our

who

military aim: to

quickly and devastatingly

to retaliate

so that an attack will
launched only by a demented
enemy in utter desperation.
We

be

do not think Soviet Russia is that

demented.

people

qualities they felt had been lost.

to

keeping with the realities

their

them all the

grow."

we have begun to work
plan of national defense in

a

who

to

of

Third,
out

In that year, 1952, the people of
the United States turned to a man

represented

result

in the coming year.

the

.>

the

than balance in cash

en¬

statesman

power

absolute power

solutely.

of

great

a

remarked,

once

and

standards

we

hopefully

a
•

creeping

been

painstaking effort, and
have resulted, in the language of
the forest manager, getting down
to where "we are
cutting no more

self-sufficient,

wiser, and finally arrogantly
placent.

have

tireless,

philosophy

began

of

lay

can

The goals for which we hope

have

be able

experi¬

hold.

to

First, of course, is the Korean
War, which mercifully came to an

have

take

to

good deal of

a

where

that

and degeneration of that era.

to

lit¬

a

where

cleared away.

New

concept

and

So let's

changing. We are, in some re¬
spects, emerging from the despair

and

It takes

with

greater variety of interests began
to compete for benefits and
priv¬
ideas

It takes

know

The tangle has to be un¬

debris

gov¬

sequence

a

look

ever

great forest

a

Carelessness

bad.

attitude.

which

adopted

hope
well im¬

conflagration and the loss of

wrong. It did not like to be

questioned.

cut

good

that the Administration could

no

you

in

to

our

I

time to make

did

hurricane?

a

figuring

road.

to

-

second, in logical

have

feel¬

you can

some

But

tangled.

even

not

we

certain

a

calculation to know where to start

long to deteriorate under

mandate.

The
was

It

have

we

progress.

As

blowdown

a

start in.

their
"let Government do

a

As

course

is

and

turn.

tle

with

power

j and

this

share it.

after

evi¬

era

brighter

degree of inertia
really started moving

there

to

people of that

There

now.

things.

agine, it too

the blind willing¬

was

of the

The

different

and

new

in

the

enough:

The first

it's

some

prospects

The historians of today have not
yet been able to analyze the con¬
sequences of that era adequately.

ness

to

crusade.

made.

ing of exhilaration both about

activities.

are

to

have

you

government that
exercises
a
substantial control over their own

results

a

selected,

Young

the

me

forward

government
astronomical billions

of

tell

overcome

a

some

been

be

purpose

and

the

has

Washington
to

seems

people got to
know, too, what it is to live under

But

turn

around

a

ernment

was

Because

It

when

year

dollars.

dent

as

going as a Nation.
be prouder of my

to

old-timers

that government knows best. Gov¬

before.

unparalleled

hurt

world.

known

experience for them—a

and

the

not cost

of

to be clearer

enlisted in

I

The

experience unlike

an

So

things.

more

Every young person in
America, born since those trying
days
25
years
ago
has
never
did

I

direc¬

our

were

wanted

hold

self-energizing and self-perpetu¬
ating momentum. Bigger than the

known

of

sionally spies and subversives and
low-grade public servants could

1930s

quarter of

ever

was a new

It

a

our

people had

great
sion.

the

take

The idea grew
tl^at government
was the biggest and most reliable

created

Just

to

more

with

sup¬

hill.

our

Government Paternalism
in

once

ernment

same

here

of

I

we

ancestors. It was

sure

country.

ernment

people.

the nature of that decision
to

Key Year

be

I wanted

where

ments

Things Are Clear Enough

bad

for

ileges.

the allegedly initiated.

is the fact that current
pro¬
posals would take several billions of dollars from the rev¬
enue of the Federal
pr no

than

more

and

no

number of
aspects of the case about
be no reasonable doubt. One of
the first

are

can

we

fathom.

easy reasoners among

But there
which there

forces

simple they

part,

seem

imponderables which

Washington

involves

matter how

our

who

out at the present

it

me

tion.

19S4 Is

The truth of the matter is that they

particularly dangerous because they tend
take the curse off discredited
pump priming ideas when
point of fact they come out at or near the same place.

Change

when

wanted

unim¬

to be

us

time

a

a

time

Continued from first
page

government spending.

notions

i

for

prowling around the world
seeking deluded victims, it seemed
to

ways made

not

Great

great faith of

events

respected group of professional economists

principles.

our

were

^damage.

,

heritage—being

our

ourselves—compromis¬

Time

and elect."

Professor Burns is, of course, quite possibly the
nation's leading student of what is inaccurately now
termed the business cycle, and no one is more completely
on record as convinced that man has not
yet been able to
penetrate the mysteries of cause and effect relationships
involved in this so-called cycle phenomenon. No one is
more fully on record as
doubting that there is any way
in which he or anyone else can
prescribe for the economic

to

young people.

philosophy which might with apology to Harry
Hopkins
be stated as: "Borrow and
borrow, spend and spend, elect

a

turns, moving against

with

politico-economic

a

did

so

numbers of people felt that way,
too, and oddly enough, consider¬
ing their years, a great many

that of Senator George.
Evidently,

as

ultimately

and

off the road, taking

way

wrong

untrue

to go to the banks,
mounting debt—assuming
Congress presently raises the debt limit, a sine qua non

the

people

distinct feeling we were

a

the lessons of

and monetize this addition to its

the hope

You wanted them,

us.

were

of all such

hope, and

When I say the American

wanted these things, that includes

Obviously, if what the

duty to study the welfare of the nation with dispassionate
our

people

borrow ohr way out of economic trouble.
But where
would the
Treasury get the funds it would have to have?

care.

But it had been

government

the

tician.

to

to work out the

He in¬
desire to re¬
to its proper

clearly his

of that election year,

now

consumer saves

—

nor

master. The

stands—prob¬
ably welcome this prospect. They still believe it possible

from, another

us

left

rather than the
people, in the phrase
decided they
wanted a change. They wanted,
among
other
things,
a
great
leader, rather than a smart poli¬

Of course,

that.

socialistic

role in American life: the servant

tor

do

in politics

course

the

laissez faire right.

the

dicated

of

This

of

capacity for leadership.
proclaimed his belief for a

He

tures forthwith?

coupled with the recent references of the President to this,
same subject appears to have created a situation in which
only an early, sharp and quite evident change for the
better in the immediate business situation is likely to
.save

degree. He had demonstrated tre¬

eral billion could

Danger Now Great
•r

represented
responsibilityhonesty, integrity—in the highest

when he says it has been
doing a good job. But where is
the man who would for a moment claim that
another sev¬

now

the

He

Administration under

prodding by Senator
George's able colleague, Senator Byrd, has been most
strenuously endeavoring to cut the last penny of waste

We See It

As

The

Thursday, February 25, 1954

...

Fourth,
a

we began to give
the
chance to spend more of

own

that was being
from them in taxes.

money

taken away

Volume 179

In

the

tion

The Commercial and Financial Chronicle

Savings in

and

conservative.

government

will

continue

If anyone says

expendi¬
be

to

control.

no

shared

with

the taxpayer as fast
believe it possible to do so.

as

we

"Hold on
moving
from socialism. This sounds
to

there, I thought
away

Now, if I may ask you to hold
the
image of the forest blow-

haps that person

down—that

cents

like
let

a

refer to

had

the

in

up

that

of

mat—

the

had

been

forest

this

air

old tangle that

an

to face—some

underbrush

ing

from

badly-trampled door

me

we

looks

for

old

grow¬

long

a

time.
For

example, there is the farm

problem.

37

We

billion

committed

to

stabilize

■economy of America

support program.
than

more

this

but

penses,

nearly

the

the

this

a

represents

in

surplus farm com¬
modities today.
With all of this
mains

unsolved.

an

answer

swer—

from

an

delusion

ernment is

We

that

is

that

smarter

know

farm

undoing
made,

the
will

it

gov¬

will

hon¬

an

However,

in
already

mistakes

hundreds

cost

the

ment

back

sound

a

and

stabilized

program.

have

made

fields.

We

■away

from

the

•outmoded

that

starts

entrenched
of

one

two

abnormal

miss

can

and

(the fact

this effort is resulting
climate—healthier and

new

invigorating. This whole
—the

Eisenhower

recently

been

in

trying to get

are

ideas

■decades. No

good

in

a

more

program

proposals—has

presented

to

Con¬

nominal.

was

is different. There

it

is

depression—large-scale

employment

in

They believe,
Administration

trouble.

I do, and as this

that

opportunities

the

here

to

un¬

great numbers of

—

the

use

are

tremendous

powers
which
are
available to us, first for peace and

productive
defense of

heritage, and sec¬

our

strong

ond,

to

keep

a

here

at

home

so

economy
that neither in¬

surmountable mountains nor great

unfathomable canyons confront us

which

life

economic

our

we

successfully encounter.

cannot

objectives, 11

These

d i

a

gentlemen, cannot be achieved by
government. That is, they cannot
if you are to keep your freedom.
It is about as simple as that. They
only be achieved by govern¬
with the cooperation of the

of your money,

use

it is decidedly a conservative pro¬

You

gram.

and

the

rest

people of this country
a

choice.

is

It

that

of

choice

the

have

now

which

makes this a key year of decision.
If the program of the Eisenhower

Administration

engineers—in

all

by

short,

seg¬

act¬

ments of the human economy

ing in willing

ai}d understanding

cooperation.
The strength of America is not
The Govern¬

Government.

in its

its

is

adopted

the

next

Congress of the United

jority of the President's Pafrty and
support of his principles.

If it

is rejected, the Party of the Presi¬
dent will lose its control in Con¬
gress, and we shall be faced
a

with

frustrating situation.
Eisenhower

transportation
More than

.you some of the

has

dictated

islative

genuity,
their resourcefulness,
determination, their creed—

first

place,

it

This is the time of decision

that

best

the

potentialities

selves, in
science, in
We

are

this

cultivate

lie

in

our¬

in

our

in our
education.

ma¬

resources,

our

to

the

a
more equitable sharing of
responsibility between the Fed¬
eral establishment, State and local

governments is the way toward
preservation of greater indi¬
vidual opportunities. Your share

the

that

duct

responsibility is the con¬
business so that the

of your

Nation

grows

with

and

the

will be moving

of

tenets

American

our

creed, in the incomparable power
of

free

this

institutions.

and

men

determined

chief

objective

is whether

concern

In
our

not all

or

those who share in the benefits of

willing to share

are

If

to

not,

really have something
about.
The resolutions

we

worry

to which we

are

so

prospers

fall into

ity

dedicated need

words.
Otherwise, we

than

more

mere

commonplace uniform¬

a

which

Proust

Marcel

mentioned.

In

speaking

determination to change
made this philosophical

once

of

our

tion, "The. situation that we hope
to change because it was intoler¬
able
becomes unimportant.
We

as

a

obstacle,

as

determined
taken
and

we
to

do,

it. led

around

us

then

if

the

absolutely
but life has

were

turn

we

us

past it,

around

to

at the remote past, we can
barely catch sight of it, so imper¬
ceptible has it become."

gaze

We

are

learning—the hard

—the burdens and

of power.

It is the time of grow¬

be

to the individual

his

own

a

realization that

effort is the

best way to

help himself.

Not only do we feel

the responsibilities of world lead¬

ership,
that
that

We believe the Federal Govern¬

hope,
This

with
action

people

as

The

comment

make, if

is

me,

to

de¬

we

but

many

are

we

have

much

of

our

discovering
to

learn

friends

It

hap¬

so

present when the

was

Chairman made his report to
in advance of its

the

President

nouncement.

I

should

to know that he made

like

an¬

you

our

Exchange-

in¬

terests.

in

the

field

of

natural

conservation; in the field of
tariffs; in labor-management re¬
lations; in a variety of others.
But

as

greater,

freedom

your

duty

your

of

liberty is

becomes

is

responsibility.

will

and

where

continue

each

in

best

From

looks

I

the

sit,

of

future

promissing.

very

to

one

jus.

What

we

all do in this country for our

can

filled

May

March

the

at

election.

annual

Other

10.

Committee

meetings

the

of

also scheduled for

are

March 17, March 24 and

31.

Positions to be filled at the
nual election

an¬

Chairman of the-

are

Board of Governors and nine gov¬
ernors.

:

Members of the 1954

cor¬

appeal of the present Admin¬
the

be

Room

becomes

respondingly greater. The price of
liberty is not cheap—because the
The

be

resources

and

of Governors'

Building, for the purpose of re¬
ceiving suggestions for offices to

March 10,

Questions inevitably will arise;

March 3rdt

on

Committee

Nominating

Charles K.

are:

Dick¬

Auchincloss, Parker & Red-

son,

path, Chairman; Wickliffe Shreve^.
Hayden, Stone & Co., Secretary;
Thomas

F.

Fagan,

Moore

&

Schley; Charles J. Hodge, Forgarw
&

Co.; W. Fenton Johnston, Smith.
& Co.; Bernard Kalker,
Brunner & Co.; William P. Mar¬
Barney

world

ing taken "an extraordinary part

neighbors in seilles, Jr., Murphey & Marseillesworking Richard H. Smith, G. H. Walker &
Wagner r
good management is nothing short Co.; Leonard Wagner,
of thrilling.
This Administration Stott & Co.

in

will

not

to

contribution

He described him

one man.

the

effort."

ments.

He

the

to

carefully
mind

the

particular

a

attentive

He

had

and

to

an

great

He

the

was

argu¬

unprejudiced

content

was

hav¬

as

gave

work.

of

to

let

weight of evidence determine his
conclusions.

the

upon

He

attentive

was

meetings.

of

he

missed

Examination
one

Commission.

the

only

He

homework
tions

meeting
did

his

assiduously. His ques¬
penetrating and intelli¬

were

gent.

He

was

mountain

a

strength. These

are

not

my

iof

com¬

ments.

They
are
comments
of
Clarence Randall to the President
of

the

work

United

of

Cola

States
G.

about

the

Parker.

the

me,

growth of

social

re¬

sponsibility and understanding on
the part of business and
industry
is
unparalleled
in
our
history.
There is

a

and

their

will

corporate managers

our

find

shareholders
in

than

you

other Nation of

any

the world. And yet it seems to me
that our leaders in industrial life
—in

the

ample

business, lor

paper

ex¬

unnecessarily shy
about exerting their own leader¬
ship in the formulation and sup¬
are

—

port of national policies.
The other day, the publisher of
one
of the world's great news¬

said to

"You must keep
the Fresident going to the people.
His greatest strength is in the lift

papers

will

gives to their aspira¬
This is good advice. You

recall

that

well-konwn

the

me,

he

tions."

State

"There

the

editor of

of

the

Union

message,

a

all

the others.

President

is not

the New Deal

expunge

to pro¬

ject it. He is taking off from the
facts

of

United
on

life as they are in the
States, A. D. 1954, going

from there to outline in

tone of

confidence,

"Initiative is

bird that

a

snared only by a

will

roost

never

strong

ever

or

new

a

a

new

course.
can

be

firm purpose. It
for those—i-how-

rich or right—who
they want to do

do not know what

it."

with
To

and

members of the
members

of

with

American

far

more

your times
than
wish to recognize or
acknowledge, the call is the same
upon

you

that

this

Administration

call

is

in

is

general

pro-everybody

and

must

that

know

this

Ad¬

ministration is committed to get¬
ting government off the backs of
the

people.

We do not hold that
government is a Goliath of judg¬
ment which determines who

what.

do

aim

The

of

the

Administration

hower

shall

Eisen¬

to make

is

the most of America, not to make
the

of

most

quite

Los

a

call

to

industry

you

to

Angeles Bond Glsh

think it

will

small

a

can

percentage

able

and

men

women

to

make the sacrifice of their time to

leaders

not

do

work

do

Many

government.
to.

in 1954, The Bond Club of Los
Angeles has appointed committeechairmen for this year, as follows:
Program, Warren H. Crowell, o£
Crowell, Weedon & Co.; Enter¬

Robert

ber,

not

care

all of us, of whatever
in life, work for govern¬

ment—for

nancial

instance, we give it fi¬

support, even, if involun¬
We, therefore, have the

tarily.

(Special

full

needs, and how his De¬

partment
and

reviewing the

to

energy

Nation's

The

Rudolph Co.
Chronicle)

Financial

JOSE, Calif.—Paul Rossetti has joined the staff of Paul
C. Rudolph and Company, Banlc.
of America Building.

as

Every responsible officer in the
Administration
has
been
giving
his

to

SAN

With Leo Schoenbrun

designed for the general good.

are

Curtis."

&

Joins Paul C.

the responsibility
policies when they

right as well
to guide its

Diehl, of Paine, Web¬

for

Yet,

station

D.

Jackson

Most of Amer¬

affairs.

manage its
ica's

LOS ANGELES, Calif.—"Look¬
ing forward to expanded activities

tainment, Deeb E. Peter, of Blyth
&
Co., Inc.; Finance, Robert R.
Miller, of Revel Miller & Co.;
induce Publicity, Harold Walsh,
of the
of the Los Angeles "Times"; Attendance,,

succeed.

Government at best

only

Appoints Committees

government. This is
undertaking.
But we

an

help build

can

strong

a

country. We are
with good manage¬

(Special

to

The

Chronicle)

Financial

LOS

ANGELES, Calif.—Jeanette Haimson has joined the staff"
of Leo
Schoenbrun, 1385 Westwood Boulevard.

prosperous

proceeding

There

methods.

ment

is

a

tre¬

mendous amount of thorough

Joins

staff

work.

kind

not

it

but

process,
the

is

This

of

a

does

insure

help

In

his

second

Lincoln

inaugural
referred

boraw

case

is

connected

Durw

i t ft

Robbins, Inc., U. S.

&

Bank Building.

the

With Boren & Co.
(Special

to

and

act

anew."

The

Financial

Chronicle)

BEVERLY HILLS, Calif.—Dore

said,
N.

Schwab

of

anew

Ore. —Don

mes¬

to

new," he

think

must

we

Chronicle)

Finanpiai,

now

Campbell
National

adequate to the stormy present."
our

is

-

"dogmas of the quiet past as in¬

"As

The

to

PORTLAND,

that

government

Americans voted for in 1952.

sage,

Campbell & Robbins

(Special

spectacular

Boren

has
&

joined

Co.,

the. staft

9235

Beverly

Boulevard.

This country, as

Lincoln pointed
out, belongs to the people who
inhabit it. When they grow weary
Long & Meany to Admit
of
the
government,
they
can
On March 1 Gerslhon J. Feigon
change it.
We do not believe
they are either weary of it or lack and Jack Feinsinger will be ad¬
mitted to partnership in Long &
confidence in it.
If you are of
15 Broad Street,
New
this frame of 'mind, you will have Meany,
bounteous opportunities to sup¬ York City, members of the New
York Stock Exchange.
port it, if you elect to do so. This
is your great privilege and oppor¬

A. P. Vesce Admits

On March 1, Anthony P. Vesce
With Marache, Dofrlemyre & Co., 25 Broad Street, New York
City, members of the New York
(Special to The Financial Chronicle)
Stock Exchange, will admit Rose
LOS ANGELES, Calif. — Shull
Vesce to limited partnership.
Bonsall, Norma D. Hansen and
rrfl

^

Lee

C.

Hauge

have

become

af¬

filiated with Marache, Dofflemyre

in business

consider not

your own interests, but the
people's interests—to take as your
point of departure the facts of life

only

will

It

the

paper

pulp industry—or in the larg¬

most of

is

of

tunity today.

you

sense

er

It

You

"so

trying to

or

"thread

anti-nobody.

The

thread is the 'general good.'
"The

hard

one

clear,
constant
thread, joining each fact and each
with

our

under

show favoritism.

this

good."

magazine wrote after

runs

measure

seek

Nation's

Yes, we are growing up, both
internationally and domestically.
To

children and for

the

trying to answer.

ity is, for instance, in the field of

national

meeting

a

the

reference

and

real responsibil¬

the

and

istration

Committee.

and

more

interests

Randall

pened that I

Na¬

prosperous

of other people must
encourage
the adoption of views and policies
which conciliate your industrial

price

to learn what




this

and

secure

termination of the conclusions and
recommendations
made
by
the

the

These deal, of course,

permit

that

you

a

it does — then
those of you who exert the great¬
est
influence over the thinking

should

will

you

remind

I

industry had its share in the

the role of partner in

individual.

based

whole.

a

second

like to

and

conducting
for security of the

be

America and the world today, and
the best interests of the American

about many world problems
than we do.
We have been trying

programs

will

ac¬

union of interests: accept¬

upon a

It

should continue to stand in

legislative

ing, not ducking, the responsibil¬
ity of the United States
of

neighbors around the world know

ment

to

these will be followed up, we ear¬

influence

restored

com¬

like

The first is that there will

of America.

is

of,

positive recommendations and

standards in your

there

two

are

should

industry—leaders

that

Stock

York

the sixth floor of the Exchange*

I

ing maturity for the United States

improved;

New

the Board

There

which

result of your activity; that

living
communities are

Nominating Committee of

The

the

on

way

responsibilities

responsibility

in

things, he
observa¬

If some part of the

unquestionably

world trade.

which

have not managed to surmount

belief

that

in

should share it, we

They need action.

to

way

dedicated

back to those who

the

our power,

chinery, in

more

be¬

responsibility

turn

we

as

and

more

the

keeps

which

our

cause

In

country strong and prosperous. It
offers

strong.

toward

moves

incentive

and

and

something

1954.

of

leg¬

decentralization of certain respon¬
sibilities. It encourages the energy
1

sound

the

of

NYSE Nominating Com.
To Meet March 3rd
will hold

development

greater awareness of a
duty to the workers of this coun¬

their

base

2$*

tion at peace rests with
you—and

and

try among

attempt to give
Eisenhower

program

this, the Government

only if the character of
people—their courage, their in¬

broader

(905)

agement

its

its responsibilities.

philosophy which

the

strong.

are

the

on

self-interest

own

■' v

for

is strong

American life

Program

would like to

I

employ¬

million

sixty-three

ables, its magnificent communica¬
tion system, its machines, its

with

States will be composed of a ma¬
in

productive facilities, its labor¬

its

•enthusiasm
the

strong only if its industry,

in this year, A.D. 1954
a firm purpose,

are

build, with
only in your

''

'

'■ *

1

general good.

which this

course

they

•;,;,s

Nation should pursue in the man¬

that

are

by the Congress, with
popular support it deserves,

concerning the

producers of the nation's wealth—
of labor, of business and industry,
of management, of scientists, of

atories, its inventions, its schools,

and the

available

of the records of attendance shows

in its relations to the problems of
human beings, it is distinctly a

liberal program. In its handling of
the fiscal affairs of your govern¬

made

ment

ment is

ment

but

been

asked it to make recommendations

leadership

and

e s

It deals with every impor¬
tant problem which confronts us.
gress.

and

ready

make.

question that the people of this
will never accept another

can

We
-other

not

about average pay.
valuable, it wasn't

Nation

of

of the taxpayers'
money
liquidation of this invest¬
and again putting farmers

on

was

young

Depression

millions
an

was

al¬

ments

a

Will Not Tolerate Another Grave

in

l*y

'

as

man

of their assistance

does,

" '*•«

—to

tion.

people

'

for

longed illnesses or depended upon
their neighbors for help, the cost

grave

'

time ago named a commission

nestly

Today

'

world trade. tThe President some*

people lost their jobs or had pro¬

now

agriculture

program.

for

an¬

the

profit by the stability of
est

seek¬

than the peo¬
the long run

in

American

still

honest

an

that will retreat

answer

the

ple.

It

—

re¬

can

valuable in hard cash. So when

as

as

investment, this farm problem
ing

starting in

lot
ex¬

approximately the amount which
is invested

hour

an

While time

no

operating

sum

can

price

We spent

in

recall, as I
recall, the days when 15 or 20

farm

in

me,

we were

little like socialism to me." Per¬

a

'■

the review of facts which had

governing reduc-. with those: unforeseen emergen
taxation, we have been cies over which the individual has

honest

tures

...

policy

.

in

both

Number 5302

&

Co.,

634

members
Stock

of

the

Exchange.

Street,

Spring

South

Los

Mr.

Angeles

Chicago Analysts to Hear
CHICAGO,
meeting

eon

111.—At
of the

the lunch¬
Investment

Analysts Society of Chicago to be
Hauge was held March 11, the company to be

nreviouslv with Walston &

Co.

rlicriKspd

is

the

Ohio

Oil

Co.

\

30

(906)

2 With
(Special

B.

The

Chronicle)

Financial

Mutual Funds

Douglass
Street.
with

&

Co.,

Mr.

and

Co. In

the

Inc.,

Eaton

Paine,

Curtis

own

Comparative Fund Performance

associated with Eastland,

now

was

I.

100 Bush
formerly

By ROBERT R. RICH

&

INCREASES

&

per

his

in

San

was

pre¬

business

Francisco. Mr. Eisenstadt

viously with Capital Securities Co.

King Merritt

(Special to The

Financial

Chronicle)

BENICIA, Calif.—J. David Dux
has joined the staff of

King Mer¬

ritt & Co., Inc.

A MUTUAL INVESTMENT FUND

NATIONAL

net

asset

value

they appeared unduly de¬
The insurance, natural
come
were
reported
today
by gas, oil and utility stocks were in¬
creased because of their favorable
Century Shares Trust, oldest and
largest open-end investment com¬ long-term growth prospects."
pany
specializing
in
insurance
Of business generally, the Wel¬
company and bank stocks, in its lington
management
stated
in

annual

Joins

in

Fall,

share and net investment in¬

for

report

1953.

Net asset value per share as of
Dec.

31, 1953,

$16.96

was

pared with $16.28

as

pressed.

"Industry has done such a
job in supplying defense

part:

as

com¬

and

a year ago,

good

civilian

and

ample

an

needs,

we

supply of
goods in

consumer

have

now

all

kinds

of

buyer's mar¬
ket. Under these competitive con¬
cents
per
share compared with
44 cents for the year ending Dec. ditions, we believe the larger and
more progressive companies
with
31, 1952. A capital gains distribu¬
tion of 25 cents per share was ample capital and well-established
paid Jan. 28, 1954, the report said, products should do considerably
better in sales and earnings than
representing realized profits from
dividends

investment

totaled

47

the sales of investments last year.

SECURITIES

Total net assets of the Trust at

a

others."

QUOTED

IN

CALVIN

Bullock's

FREE.INFORMATION

listed at $36,- February Bulletin, Harold E. Aul,
018,564 by the report which said Vice-President in charge of the
that
the
portfolio included the firm's
investment
management
stocks of 39 insurance companies,
department, declares that, "Can¬
comprising 83% of the net assets, ada stands at the threshold of an

FOLDER AND

and

end

year's

SERIES
WRITE FOR

The

PROSPECTUS

holdings,

NATIONAL SECURITIES &
RESEARCH

CORPORATION

CfohliM

120 Broadwav. Now York 5, New York

percentage,

by

Casualty

were:

insurance

economic expansion of great mag¬
nitude.
Her
huge
and
as
yet
,

com¬

largely

panies,
11.08%;
fire-insurance
companies, 48.18%; life insurance

sources

companies,
21.77%;
insurance
holding companies,
1.97%, New
York banks and trust companies,

labor
tion

untapped

require

to

natural

only

preeminence

economic

as

and

posi¬

a

world

a

power.

"Canaaa

in

many

respects

—

United

FUND

WELLINGTON
recorded
in net

a

that

throughout

the

1953,

Fund

gradually reduced common
stocks
and
other equities from
about 67% of resources at the

be¬

ginning of the year t.o about 58%
at the year-end. Correspondingly,
during this period, the backlog of
gbod grade corporate and govern¬
ment bonds

FOUNDED

1928]

net

Prospectus from

or

of

investment dealer

PHILADELPHIA

3, PA.

at

assets

$280,894,213

all-time

an

compared with

as

$246,183,017

at the close

Asset

per

value

the

at

high

share

year-end, after

of

was

a

1952.
$19.97

distribu¬

tion of 46 cents a share from secu¬

rities

profits,

$20.87

the

at

beginning
reported its

Wellington

£J/ie

Sewye

PUTNAM

ratio in 1953

expense

the lowest in its

was

1953,

31,

assets

in

with

57%

of

net

stocks; 1% in
equity type bonds and preferreds;
129%

cJ

of

history.
The report listed more than 300
securities in the portfolio as of
Dec.

FUND

with
1953.

compared

common

investment

in

preferreds;
ment

13%

and

bonds

bonds

and

in

and

govern¬

50 State

Street, Boston

Bfyf WWTW9 wwwwwwwwwmvw

of

new

highest yields
than

10

grade

issues,

"This

rise

con¬

offerings at the
available in more
for

years

it

investment
pointed

was

out.

interest rates," the
noted, "was caused
by the unusual demand for capital
by industry and Federal and local
governments
when
credit
was
in

management

ttfn&titulwnai

tight.
the

•

BANK FUND

These

quality

and

changes improved
bond investments

of

shortened

the

maturities

of

government bond holdings.
•

FOUNDATION FUND

•

"Common

stock

•

GROWTH FUND

management observed, "were

also

strengthened by the increase

in
•

INSURANCE FUND

stable

sale

of

income

some

stocks

cyclical

and

and

stocks,
particularly in
strong markets in January

INCOME

FUND, INC.

The

report

vestments

in.common stock

during

the

past

"The

HARE'S

19 RECTOR STREET, NEW YORK
6, N. Y.

Prospectuses

may

the above

or

be obtained from
local dealer.




XMOCJ

principal reductions in
stocks

wei-e

and

LTD.

and

this summary

gave

mon

Distributed by

the

early summer."
of the shifts

•

the

vola¬

tile

tituliwia/

parts,

container,

in

in¬

year:
com¬

automobiles

industrial

machinery, and tobacco industries.
The principal increases in com¬
mon

stocks

machinery,

is

in agricultural
insurance,
natural

were

gas, oil, and utilities.
the agricultural

We added to

machinery stocks

in the market reaction in the
early

years

of

the

in Henry

Review,

it

5.9%

to

ard
rr-*'•

Stock

Incidentally,

Ea¬

Stock Fund,

cial case,

Street

record

Investing Cor¬

the

other
for

av-

be

and

1

trusts

whether it

the

in

article,

same

,

might not
your

Wall

de

VEGH:

& Company,

Street,

•

,

.

New York City.

the

listed

three

issue the impression created

de Vegh
Imrie de Vegh

the

to

spe¬

superior

a

singled out.

IMRIE

period
ending Dec.
31, 1953.

Capital

the article.

by

two

9.8%)

were

year

Among

for

somewhat

appropriate to correct in

next

trusts"
the

(up

wonder

I

performed

a

also showed

funds that

out-

erages

9.4%

General

Fund, which is

"both

and

Fund,

ton & Howard

poration

Street

Wall Street Investing.

Investing Cor¬

Wall

State

for

Investing, 8.3% for Eaton & How¬

that

poration,

period in question, as com¬

year

pared

A.

Fund

State Street,

Feb.

23, 1954.

•

,

Line, Utah Power & Light, United $15,027,294, represented by 2,545^Gas, Shell Oil, Florida Power & 597 shares in 1953, and 2 420,051
shares
in 1952.
The
Light, and General Motors.
per
share
value
THE

TOTAL

investment

of

assets

in

trusts

the

the

four

$5.82, against $6.21.

was

United

United

Continental

.

Fund

had

net assets of $3,396,143, compared
Funds, Inc. group at the close of with
$2,101,967.
On the basis of
1953 were the highest ever, sur¬
778,636 shares outstanding at the
passing $112 million, and in the

close of

month

1954

of

the

value

assets

Cameron

increased

K.

$8

million,
Reed, President, an¬

nounced.
Ten

United

total

ago

years

Funds

of

assets

$3%

million;
total was

were

recognition of the

1953

the value

of

share,

a

total

ago.

illusion

no

28,

page

Mutual

stated

issue

Financial

share

ing

a

was

with

compared

$4.36

$4.57

a

459,668 shares outstand¬
year previous.

THE

on

SEMI-ANNUAL

Report

qf

Investment Trust of Boston shows
total assets

market

991.to 706,827, an increase of 56%.
In the six months covered by

and

in

from

the

United

States

Europe seeking to participate
growth of the Canadian

the

and

economy

sanctuary of
social

seeking, too, the
sound political and

a

environment.

endorsement

land

of

tunity

sound

I

caution

formed,
view

of

of

of

timing,

as

of

timing and

the

trusts; today there
50,000 shareholders
than

be

in¬

point

patience

is

of
de¬

manded."

31,

1953 were $67,051,013, a new
high, compared with $61,492,494 at

the previous year-end and

an

in¬

owning

ers

of

compared with $26,211,711 in 1952.

showing

by

United

ment

Association

Companies

of

show

that

sales before repurchases

declined
Net

14%

Fund

a

from
net

assets

Invest¬

the

Fund's

in

record

the

World

of

years

War

II.

Number of shareholders totaled

25,300

Dec. 31, 1953, compared

on

1952.

The

United

fund

had

6,028,355

flecting in part a 100% stock divi¬
dend, rose from 1,125,961 to 3,647,was

duction

eight

postwar

Shares

years.

outstanding were 3,723,632 on Dec.
31, 1953 compared with 3,215,833
a

year

and

ago,

960,182

Distributions

to

in

value

per

share

$5.96, against $12.59, the
reflecting

the

re¬

greater

net

United

assets

of

Science

Fund

$14,819,583,

30,

increased

$6,Shares

over

1952.

from

45 lt-

the Trust not only
continuoiis rate of

its

growth, but also stimulated wide¬
spread interest in financial circles

by introducing a program for in¬
vestors who wish to make
regular

investments, combined with low
cost reducing term group life in¬
surance

under

a

policy written by

the John Hancock Mutual Life In¬
surance

Company of Boston.

Under the program, regular in¬
of from $50 to $1,000

be made monthly or quarter¬
ly. Each program may extend for
any period of from 10 months to
may

10 years, as

had

against

between

and 65 who

in

desired by the invest¬
is provided to in¬

Insurance

or.

vestors

are

the

of

ages

not

engaged

hazardous occupation.

The maximum insurance cover¬
age under a program

the

life

any

the

covers

monthly
be

of

or

one

is $10,000
person,

amount

of

unpaid

made

under

the

program.

The program may be cancelled
by

the

investor

at

any

1945.

time

during

shareholders

from investment income and capi¬

gains totaled $720,000 in 1945,
$3,886,730 in 1952 and $4,501,002 in
1953.

During

total

the

stock
from

postwar

Fundamental Investors, Inc.

years,

holdings have in¬
45%

investments

of
in

the

1945

Fund's
to

63%

Diversified Growth Stock Fund

at the end of 1953.

High
ferred

return
stock

duced

in

bonds

and

holdings

the

same

pre¬

were

period

re¬

Diversified Investment Fund

from

28% to 16%, while the investment
reserve

high
cash

portion

—
consisting of
bonds,
notes
and

quality
—

was

reduced

from

27%

Manhattan Bond Fund, Inc.

to

21%.
Chemicals
nam

constituted

the

Put¬

Fund's largest common stock

investment

at

the

end

of

Largest
ments

Lead,

common
were

du

stock

PROSPECTUSES

1953,

followed by electric utilities, oils,
railroads
and
insurance
stocks.

invest¬

Pont, National
Atlantic
Coast

Atchison,
Line, Standard Oil (New Jersey),
Union
Carbide,
Seaboard
Air

AVAILABLE
FROM

YOUR

ON

THESE

LOCAL

MUTUAL

INVESTMENT

FUNDS

DEALER.

OR

Cleveland

Chicago
Los Angeles

on

and

quarterly investments

tal

common

21

in good health and

acceptable risks

a

to

number of shares.
The

Nov.

report,

are

Accumula¬

asset

on

maintained

$21,726,155, against
$14,173,291. Shares outstanding, re¬

The

increase of 44%

outstanding

tive Fund were

5,600 in 1945—a 350%
the

share,

a

Nov. 30, of $8,903,-

on

vestments

Income

shares outstanding, against 5,192,449 shares a year earlier.
The net

578.

an

158 951

United

1952.

gain of 2.3%.

of

were
$72,669,668 compared
$66,493,477 at the close of

with

with 21,500 the previous year and

increase in

total

last year

years

shareholders. The report appraises

Funds

better than the industry as a
whole.
Figures released by the
was

National

563,

the

disclosed that the gross amount
sales in 1953 was $26 880,351,

of 400%
in the postwar
asset value
was
$12.05
since 1945, according to the
against $12.81 a share.
Trustees'
16th
annual report to
Net assets of United

crease

more

13 million shares.

Funds had

TOTAL NET assets of The George
Putnam Fund of Boston on Dec.

than

more

are

The annual report to stockhold¬

The
note

a

a

oppor¬

must

from

with

Canada

sound

respect
Selection

and

Along

investment

should
in

selection.

creased

investments,"

the

50

market's

since the end

cash.

quired in 1953 by the Fund
sisted

Long's

11
and

December,
1953,
these great potentials. There has $112,611,549.
Ten years ago less
been
a
than 2,000 shareholders held 359,great influx of foreign
capital into the Canadian stock 000 shares in the United Fund

Most of the corporate bonds ac¬
Putnam Fund Distributors, Inc.

the

to

as

my

Wellington closed 1953 with to¬
tal

your

increased.

was

States stood

"We should be under

1953

in

$34.7 million increase
assets. The report also re¬

vealed

Chronicle,"

in first

other
banks and trust her
social and political institutions
companies, 7.57%. Balance of the
as
well
as
her
great economic
holdings, amounting to 0.83%, was
potential—stands about where the
in U. S. Treasury obligations.
7.33%;

Feb.

re¬

capital

bring Canada to

of

the

Vegh Mutual Fund showed an

appreciation of 23.7% for the two

"Commercial

were

banks.

19

de

Chronicle:
In

Pont

du

past he conducted

investment

Editor, Commercial and Financial

Jackson

Webber,
Francis

Thursday, February 25, 1954

...

LETTER TO EDITOR:

Eastland, Douglass
to

SAN FRANCISCO, Calif.—John
Eaton and Morris Eisenstadt

are

?

The Commercial and Financial Chronicle

Hugh w. Long and Company

San Francisco

Incorporated

Westminster

at

Parser, Elizabeth 3, TJew Jersey

Volume 179

Number 5302

.

.

The Commercial and Financial Chronicle

.

(907)
his

life time without
penalty or
other obligation.
The Trust is currently invested

largely in what the

and

in

securities

the

assets of

which,

Trustees

in

the

and

The

be

ANNUAL

sented

of

Blue

Ridge Mutual Fund, Inc. for 1953
shows
valued
and

total
at

net

assets

$18,691,324

there

12.555

were

who owned

the

outstanding.

were

Dec.

on

31,

investors

value was $9.45,
adding back the 42

share asset

$9.87

or

after

cent total pay¬

ments from capital

gains in 1953.

This compares with $10.23

a

year

earlier.

end,

invested

were

in

Blue
year-

* common

stocks selected for
capital growth

prospects, although proven earn¬
ings and dividend records are also

important considerations.
George A. Sloan, President of
the
Fund, made the following
statement

with

regard

to

recent

directors

decided

investments

in

outstanding
growth
prospects
were justified
by the longer term
dynamic
forces
underlying the
The

economy.

made
the

in

the

portfolio

last

attention

changes
reflect

quarter

being

given

to

se¬

lected stocks in growth fields. The

holdings of companies in air con¬
ditioning,
electrical
and
elec¬
tronics, and chemicals were in¬
creased.

chases,

We

at

selected

leaders

feel

this

in

that

time

stocks

these

our

fields

fully

are

warranted."
de

VEGH

its

annual

Fund,

Inc.,

dated

report

in
31,

Dec.

1953, covering its first year of
operations, reported a gain in net
asset value from the initial

of

$55,598

Feb.

on

2,

figure

1953

to

$300,413 on Dec. 31, 1953.
Original
subscriptions
to

the

Fund

per

received

were

share until Jan. 31,

at

$10

1953.

Subse¬

quently, the Fund paid three reg¬
ular quarterly
dividends of 10
cents
each
per
share.
The net
asset

value

Dec.

on

31,

in

natural

communica¬

gas

which

utilities

1953,

was

total

at

in

attractiveness

of

and in response

Gas

Electric

&

Power

&

lished

to these

position

our

of

some

in

the

the

its

net

year-end

374—largest

in

assets

to

its

boost

by
the

to $28,835,-

history.

Asset

value per share at the close of the

amounted

year

distribution

from

realized

to

$13.58

40

of

cents

after

have

we

American
in

and

Florida

Light, and have estab¬

new

Electric

in Public Service

ones

Gas

&

and

Consumers

Power. Both of these

moves

resulted

current

in

larger

a

have

securities

a

profits.

Asset value per share at the close
of

the
The

preceding
Fund

year

closed

number of shares

also

at

pared

Since

the

outstanding

high.
They
2,124,072, as com¬
1,725,440 shares out¬

to

with

standing

with

all-time

an

amounted

$14.37.

was

1953

a

year

the

duction of

the

time

same

re¬

a

re¬

degree of specula¬

of

vision-Electronics

1953,

Tele¬

Fund

shares

Delaware

to

the

taking

executive

of the

say

stock
the

moment

had

market:

market

is

breath after its forward

a

dash since the first of the year. It
is

almost

the

if

as

had

vestor

heaved

in¬

average

sigh of re¬
that the Administration

lief,

now

har

admitted

a

imminence. Of

the

business

some

last

recession—whereas

with

summer,

outlook

ness

the

of

unknown."

concentrating

the

on

company

electronics

&

Howard

Stock

issued

FUND

its. investment

in

has

public

built

up

utilities

the

new

funds

Street

$6,241,095 of

peak

sales

Investment

$1,414,829

Broad
mon

stockholdings

Dec.

31,

third

the

of

shares,

Mr.

with

to

Randolph

86.6%

at

com¬

of

the

83.47%

noted.

the

end

Fund

the

by

have

just

management

of

stocks

common

contain

complete

descriptions

of

the

de¬

objec¬

tives,

investment
policies,
and
management of the Funds together
with schedules and charts

showing

the

of

record

The

Funds.
Dec.

and

31,

Eaton

growth

Books

both

that

record

on

1953, combined assets of
Howard

&

and Eaton

Balanced

& Howard

Fund

Stock

Fund

exceeded $122,000,000.
AS

AN

Dividend

February

Shares,

issue

magazine.

In

of

the

"True

same

publication featured
mutual

funds

ih the

Inc.,

an

Story"
issue, the

article

in

business

general

increased

during

the

of

entitled,

"Our

NET

EARNINGS

of

Diversified

Services,

12

ended

months

amounted

to

Investors

in

Inc.,

Dec.

$5,646,000

31,
or

the

1953,
$19.42

share, compared with $3,833,000
or
$13.18 per share in the
per

1952,

year

inary

according to
figures
released

the

$25.51, against $26.85.

income, and 31 cents
distributed

was

capital gains.

share,

paid

was

ment

income,

46

the

total

stocks held at

last year,

equities of
corporations represent¬
43.3%, shares of public utilities,
16%, railroads, 4.9%, and insur¬
ance and finance
companies 5.4%.
THE NET asset value of the
mon

net

Inc.

stock

per

of

31

The

as

share

com¬

Colonial

$21.42

was

Dec.
per

per

cents

Of

common

of

ed

from net invest¬

and

close

industrial

In the preceding 12

like amount, $1.17

a

amount of

per

from

stocks,
bonds.

corporate
the

stocks; 13.2% of
and 15.5%
of

common

preferred

per

Fund,
share
at

compared with

$20.95

Oct.

at

31, the end of
company's fiscal year. Total

the
neti

assets

of

to

amounted

the

company

$13,318,000.

to

might
down¬

a

activity

were

Securities Salesman's Corner

stocks

common

company's largest group holding,
18.57% of the portfolio.
The

oil

industry

year

ties

previously

In

the

to

the

portfolio

owned

fourth

and

securi¬

Union

Pacific

Continental

Railroad

Co.

Holdings
&

Co.',

of

were

new

Brooklyn
Union Gas Co.,
Light Co., Cluett, Peabody

Illinois

Inc., General Electric Co., National

Fuel Gas Co., and
Co.

Wisconsin Electric Power
increased.

were

Oil

Corporation of America, JohnsCorp., Moore, McCormack Lines,

Pacific

Corp.

Power

and

&

Light

United

eliminated

States

from

Sinclair

Co.,

Steel

Corp.

common

the

stock

portfolio.
Reductions were made

in the

holdings of

Petroleum

F.),

Corp.,
Goodrich
Co.
Mid-Continent
Petroleum
Corp.

and

Ohio

Oil

your

brought about

may

considerable

a

in¬

crease

in the

power

of local banks. These banks

are

deposits and earning

reaching the point where

now

customers

to

in

the

stock

of

capitalize

both

to

the

on

your

bank

its

shareholders.

National

Investors

$11.76

of

continues. Due to present tax laws

growing communities, if
some

modification

some

therein this year, it is not possible

Corporation

the

at

end

of

1953,

earnings
a

excellent

an

op¬

portunity to share in the growth
sound

stocks.

institutions

banking

of

you

these

customers

your

in

sell

1

for these banks to look foward to

complish

'

this arrangementr>

ing the increase in their deposits
with

of

advantage and also

and

Besides, there is

even

one

growing local banks the time
come when you will be able

increase in their capitalization
will be almost mandatory provid¬

an

retained

Co.

ASSET VALUE OF each share of

was

The growth of many communi¬
ties during the past decade has

and

Celanese

Inc.,

Opportunity

Can

holdings represented in the portfolio.
Central

Home Grown

eliminated.

were

quarter

10

Company, Inc., Florida Power & Light Co.,
and

By JOHN DUTTON

next, representing 12.58%.
a
total of 26 securities

was

the

added

$5.04
the

per

total

per

against

in

dent.

share

last
in

equal

to'

the

year

or

$18.22

were

$1,467,000
surplus

share

the

in

1952, the company disclosed. The

F.

per

in¬

on

increase

alone

sufficiently

in

earned

to

surplus

and

capital

funds will sustain the sound ratios

An

Have

ac¬

adequate

still feel certain that their

end

of

1951,

net

Shares

distribution
vestment
income

cents

42

Investors
in

in

ad¬

1952

'on

gain

increase

Mr.

took

the

of

realized
an

1952,

in
who

payment

from

received

in¬

dividend

5.9%.

of

New

to

noted.
shares

holdings

added to National Inves¬
in the fourth quarter were

portfolio

Interstate

Can

Gas

Conti¬

and

Co.

increased
Carrier Corp., Florida Power & Light
Co.,

Inc.

Holdings

Co., General Electric Co., New Amsterdam
Casualty Co.,
Sprague Electric Co., and
Wisconsin
Electric
Power
Co.
Holdings
eliminated from the portfolio were Cela¬
of

Corp.

America,

Rockwell
Oil
Co.

Skelly

Reductions

included

Amerada

Manville

Corp.,

Petroleum

McGraw

Merck

&

THE

ANNUAL

Co.,

Deep

Manufacturing

Inc.

and

Rock

Oil

Co.

and

holdings

in

Corp., JohnsElectric
Co.,

National Lead

Co.

of

White¬

hall Fund, Inc., shows that net as¬
sets of $4,893,349 on Dec. 31, 1953,

sharply

up

reported

the $2,693,-

over

Dec.

1952.
The
rise reflected the merger of Howe
Plan Fund, Inc. in June, 1952.
There

was

little

31,

change

in the

INVESTMENT

DEALER

OR

folio, which

HOWARD

made up at year's

end of 3.95% cash and government

21.9%

bonds,

21.37%

preferred stocks and 53.39%

INCORPORATED
mon

BOSTON

was

com¬

One

held

Understanding

the

of

handling

In the fourth quarter, Northern

Natural Gas Company Debentures
333

Montgomery Street

SAN FRANCISCO

(41/2%,

1973)

were

added

to

the

has

developed

clientele

be

in

brought

Unfortunately,

his

city.

where bank

cases

continues
that

hold

to

they

there

management
the

to

should

handled

not

their

the purchase

done

wished

so

do

the

disadvantages

shares

situation

local

of

a

of

closely

opinion

encourage

an

that

wherein

in

so,

today

such

a

you

there

But

increasingly

coming

for you

be¬

that

they are no longer in a position of
private
bankers
catering
to
a
select clientele of depositors, bor¬

banks

Public

shareholders.

and

rowers,

now

see

Service

being the

case

themselves

institution.

These
as

a

Such

they will welcome

relationship with a progressive
investment banking firm that will
a

and

a

market in their stock,

broaden

the

ownership

of

their institution.
If it is possible for you to

Light

firm

an

arrangement

can

interest'

work

where

your

of

your

some

they

are

now

possibly there is

pro¬

aware

cold,

of them

might

are

to

the

itself with the

becoming part of their
aloof

other

are

institutions that

banking

are

the

they will continue this

own

is

institution

are

no

^

we

Many

looking ahead—
a

thought in this

and for them.

^

longer "

institutions

knew them to be years ago.

directors, and for reasons of

practice.

that

forward

associate

—

acceptable to the management

their

banking

looking

community

Possibly

instances

some

stock

right local investment firm. Banks

investment firm to act

chosing—if

cedure
be

is

future to

they have wished to dole out these
shares to a selected group of their
own

the

It could be advantageous to any

progressive

and sale of

therein.

all

see

market.

(when a share¬
sell) and have

to

specialist

a

their
have

not

offered to the officers of that in¬

the basis that they do

on

not need
as

stock

own

holder

of

institutions

widespread
ownership lof
capital stock. Other banks

Power

Mort¬

attention

in

out

First

the

to

a

which should

asset

banking

portfolio and Arkansas

Co.

community has

progressive
are

who

investment

an

his

valuable

most

Whitehall
&

con¬

a

maintain

stocks.

deposits

Every dealer in securities

and

report

if future

necessary

Randolph,

increased' 147,115 to

compared

ditional

or

per

gain

$27,150,752.

were

Randolph

Corp.,

against
share

cents

Dividends paid quarterly from investment
income during the yeor totaled 43 cents per

nese

was

$26.78

per

Francis

outstanding
2,701,939.

of

Thus,

year.

1953,

At

assets

tors'

share

realized

to

Colorado

subsidiaries

increase

$5,300,000

cording

of 33

Chairman of the Board and Presi¬

were

$7.36

or

from

nental

the

today.

stock

share

prelim¬

Undistributed earnings of I.D.S.

wholly-owned

distribution

securities,




value per-share

During 1953, dividends of $1.17
per share were paid from net in¬

year.

On Dec. 31, public utility

by

PROSPECTUSES OF THESE TITO INVESTMENT FUNDS MAT

BOSTON

and the net asset

69.6% of

the

diversification of the fund's port¬

24 Federal Street

The

Shareholders'

representing

on

Chance for the Future."

STOCK FUND

&

yesterday.

outstanding was
354,164 at the close of 1953, com¬
pared with 325,680 a year earlier,

of

tinue to grow. This means that
stitution, .is that you may be com¬
vestments, according to the an¬
banks and bankers are becoming
peting for the same block of stock
nual report issued by the growth
increasingly conscious
of
their at a time when it is also offered
stock mutual fund.
Adding back
own
stockholder
good-will. Al¬ to flie bank itself. In a local com¬
the distribution, asset value was
off only 1.1% from the $12.23 re¬ though dividends have been in¬ munity you may" find that your
creased by many local banks, and
offer of stock is being undersold
ported a year earlier. Asset value
the
stocks
of
these
institutions by the same offer made simulta¬
per
share rose sharply
in the
have increased
in
value
during neously through the bank's offi-^
fourth
quarter despite the dis¬
the past few years, it is now be¬
cers who could be acting, in sor/fe
tribution from realized gain on
coming apparent that wider share¬ instances, without compensationj
investments.
On
Sept.
30,
the
holder interest and investment is This is embarrassing and would
asset value per share was $10.99.
a most desirable objective.
immediately preclude any respon¬
Net
assets
totaled
$31,788,861
sible investment firm from taking
on
Dec. 31, 1953, compared with
Your Customers Know Their
an
active interest in maintaining
$31,245,836
a
year
earlier, ac¬
Local Bank

tailed

FUND

EATON

share¬

portfolio

Yearbooks

EATON & HOWARD

YOUR

$8,744,-

to

The

after

EATON & HOWARD

FROM

disclosed

months,

net

Trust of Boston, at market values
on
Dec.
31,
1953,
consisted of

on

This

that

expected to show resistance

trend

573

BE OBTAINED

report

number of shares

was

from

quarter.

Holdings

A

its

91.86%

1952

of

1952.

over

reduced

from

end

1953,

compared

be

29.3%

or

Street Investing

portfolio at

were

HALANCED

from

resulted

year

receipt of

of Dec. 31, 1953, from

as

the annual

holders

distributed

was

capital gains.

the Dec. 31, 1952 figure of

789,

share

organization, Eaton & Howard,
Incorporated,
of
Boston.
The

share
DELAWARE

from

last

(B.

1954 YEARBOOKS of the Eaton &

$7,786,000

field.

increase

Amerada

Howard Balanced Fund and Eaton

$2,140,000

only mutual investment

The

were

present, he <

fears

by

busi¬

better

a

the

than

distracted

was

I.D.S.

the

1952.

Manville

vision-Electronics

is

was

$31,020,634 reported at the end of

was

have been split two-for-one. Tele¬
Fund

This

During

tion."

company

previously.

close

annual

were

turn, and at the

share

a

were $36,182,31, 1953, according to
report just released.
16.6% higher than the

Dec.

on

the

them,

vast

1953

vesting Corporation
035

$9,035,851

share

altered

on

increased

$4,048,535

of Broad Street In¬

up

that

were

TOTAL NET assets of Sharehold¬
Trust of Boston increased to

have

some

movements

1983)

ers'

differential price

have been

(4V2%,

eliminated.

vestment

Fund

share.

Bonds

gage

preliminary

are

Chairman of the Board and Presi¬
dent. Net sales for the year were

experiment in reaching a
potential market for mutual
funds, Calvin Bullock ran an ad

per

all
and

hold", Mr. Barringer said, "there

TELEVISION-ELECTRONICS

$10.03

that

I.D.S.

and subject to audit.
NET ASSETS

Broad

been

income

pro¬

pur¬

of

carefully
representative

of

stated

year-end

according to Francis F. Randolph,

"At

with

above

we

increased

that

the

with

in

and

"Among

this

industries

in

tions.

of

board

our

more

power

electric

amounts

The

September

a

utility

The

largely

were

of

smaller

from

positions.

transporters

portfolio action:
/'Last

followed

withdrawal

ducers

sold

Approximately 96%
of
Ridge's assets, at the 1953

and

ago

year

holdings

1,977,751.6 shares

The per

D.

*

increase

considerable

a

a

gradual

Report

utilities,

Ad¬

intrin¬

speculative
THE

in

increase

Barringer, Chairman of
board, reported this repre¬

the

further

company

subsidiary figures

Moreau

over

visory Board, seem to
sically undervalued.

presently of its net

$17,046,000—largest in its

history.

Trustees and

Advisory Board consider high in¬
quality common stocks,

vestment

opinion of

to about 20%

31

32

The Commercial and Financial Chronicle

(90S)

Continued, from

replaced the enforcement, at gun's

of

point, of the

first page

Acheson

The

Vacuum in Asia
in the Cold War

British

pound,

Asiatics, the cold
man's

lira. Europe s
gained last year

banks

central

subsided; in fact, capital repatria¬
tion is the order of the day, as it

1949 devaluation.

after the

was

Europe

The basic difficulties of

submerged

are

being

time

the

for

they

but

persist,

in

cloud of

a

optimism that may not survive the
of

failure
and
-or

Berlin

the

the

revival of

a

race—

reduction

substantial

a

conference
arms

of

In

it

respect,

every

is

very

a

outstanding

in

spot

that ' is

Orient

With

renewal

a

the

of

forces, the threat of aerial retalia¬
tion

of

up

South Korean

a

that.

of

care

two

Manchuria, and the build¬

on

take

army

(The withdrawal of

American

divisions is

con¬

a

in

India,

Both

are

torn, also, by internal

dissensions

with

ruling Eastern half. Hindustan is
threatened

with

being, broken

lain his

country's

economy on bet¬

ter
than
customary
levels.
In
turn, his unchallenged rule guar¬
antees a degree of domestic tran¬

quillity

in few other Oriental

as

places.

Japan,

by

the

verge

on

contrast, is literally
of national bank¬

ruptcy, which explains in part her
extremely bitter anti-American¬
ism.

That

is

the

of

curse

our

complete
herence

of internal

lack

characterizes

whiere

the

controls

central

breaks

ciaries'

in

out

utter

the

against

the benefactor.

"Exports

are

Japan's overriding

flicted
more

in the latter's case and far
limited in volume). For one

item: 40% of Japan's exports went
to China
before World War

II;

,<M?%

(!) goes that way now. And
"export or die" holds for Japan
as
perhaps for no other nation.
•

trade barriers block the roads.
In

addition,

domestic

American-fostered

reforms

have

the

upset

country's traditional social pat¬
tern, with deep-reaching effects
on

carrying
the
is

munist
a

agitation. The results are
severely unfavorable balance of

payments

(dollar)

and

Fouth

gold

reserves.

,To make

•Japan

dwindling

runs

things
into

Korea

more

open

"messy,"
hostility in

(that interferes vio¬

lently with Nipponese fishing) and
in the
Philippines. She is met bv
-oool

suspicion

Indo-China,
them
cause
on

is

same

more

ready

to
on

military

problem

German

Formosa,

Indonesia.

with her

the

on

unity,

make

common

the economic

front.

as

of

It

that of

but

on

is

or

French-

a

cruder,

in

on

Japan's

rearma¬

wit compared it with
the

civil

still

Malaya.

are

Whether

regime in the Philippines

new

raising that

nation

liability on us to a worth¬
ally, will have to be seen
(and is subject to serious doubt).
a

In

Indo-China, the three-cornered
enters into its

war

eighth

year

by

fourth "corner" opening: Siam
to lure Cambodia and Laos

—a

tries
into

Greater

a

Laotian

Asiatic

compact.

hangs

the

Economics

Damocles

lions

Its

of

sword

600 odd

mil¬

increasing at the annual

are

rate

of 8

out

appreciable

9

or

million souls with¬

rise

in

the

It has a
world in

a

local
do.

intelligentsia

scenes

And

finds

Asiatic

the

in

Soviet

longing for, the one that promises
rapid industrialization.
Indus¬
trialized they all

must be, though
they lack (with the exception of
Japan) the basic human ingredi¬
ents:

and

the saver, the

the skilled

is

worker.

world

a

entrepreneur,

contaminated

by

communistic tendencies, ready to
collapse into chaos and incapable
of genuine resistance.
Presently,
it is

afraid of American than

more

of Russo-Chinese interventions.




stitute

the

for not entering the European De¬

Proceedings

fense

"The traditional

relatively

alternatives: to send
Indo-China

(by Lt. C. L.
kind of

war

to prosecute
imminence and

the

average

labor

productivity, often with an
extremely low volume of food
output, a fluctuating one at that.
Progress
is
inhibited
by
the

in

The

methods of the

bloc

nese

this

in

it

Russo-Chi¬

taking advantage of

situation

Suffice

well

are

to

point

known.

out

prime
aspect of their strategy that was
emphasized by Secretary Dulles
in his January 12th speech:
it is
an
avowed objective of Bolshev¬
ism

induce

to

overextend

they

a

adversaries

themselves

which are,

"beyond

its

in

to

efforts

in the words of Lenin,
strength, so that

their

to practical

come

bank¬

ruptcy."
The

first

axiom

of

American

policy in the Far East is not

to be

lured into overextension. In other

words,
in

as

of

station

do in

we

armies

the four

cor¬

Europe and the Mediter¬
The

ranean.

tente

cannot

we

Asia

ners

idea of

NATO

creating

based

between

on

Japan

had to be abandoned

an

an
en¬

India

and

a
Utopia.
treaty, but
military implementation.
It is purely defensive, to. assure
Australia, New Zealand,
Japan

We

it

have

be¬

such

un¬

no

would not in

and the
tion

all

Philippines of

if attacked.
major "free"

was

Its

protec¬

our

extension

nations

of

to

Asia

considered—and rejected.

Rightly

so; such

reducing

(Britain had been

lack of know-how
and,

and

apathy

a

especially,

do

Rene

excluded

So

Dumont,

French

a

economist

and

Asia,

formulated

has

connoisseur

a

esquely: It took 500
institute

hygenic

it

level

India's
that

population

sistence,

in

lower¬

40%;

production

with

to

provide

reasonable

would

in

measures

would

take

of

pictur¬

capita to

per

Ceylon, which resulted
ing the death rate by
boost

farm

to
a

her
sub¬

$250

per

capita!
The

materials

weakness

tin,

—

rubber,

of

raw

sugar, etc.—enhances the pressure
that boosts Bolshevist

propaganda.

Attempts

to

national cartels
in

order

to

would

be

programs
are

organize
and

buffer

support

too

on

similar

inter¬
stocks

commodity

the vine.

costly.

and

far

Point

They
Four

assistance

that

deed.-

We

reason,

right down into the South;
cise frontiers could

one

a

can

do

to

raise

the

The ultimate cause, of
course, is

the

cancerous

does not call for

the

economic

disintegrating.

and

therefore,
dia

is

local

openly

self.

The

carrying

French

It

turns

out

be

has

ever

the

beast

of

ting

the

most

instrument

permit¬
jungle to

seen,

the

prepare undisturbed for

laying the

trap for his prospective prey.
The net result of all frustrations

are

only because that is
the quid pro quo for our
support
on

is

that

we

have, in effect, no
policy at all, unless the
of stop-gap
measures,

of the franc that would otherwise

Oriental

collapse.

patchwork

Presently, they ask

for

400 American technicians in addi¬
tion to $800 million

materials

over-all
current

annually in
money.
Step by

and

to draw the U. S.
into the battle line in order to
quit

have

current

from

season

anti colonial

long

as

China

the

pressure

ernment to pull out

is

convenient

a

Delhi,

double-

Formosa and

demagoguery

the

the

But

era.

of

all

intentions are being eroded
by the apparent inability to assert
or to follow
up definite objectives,

gov¬

excuse

dig¬

good

altogether. As

they stay there, the Indo-

war

New

Roosevelt-Truman

public opinion may be
sufficiently
to

and

faced play with

been fully dis¬
By next summer, French

aroused

London

abandoning Acheson's

already

counted.

re¬

be

out

a
war
they cannot win.
Their
promises of last fall for a decisive

during the

and

can

name. Implicitly, the
Eisenhower-Dulles regime started
by asserting its independence

step, they try

action

procrastinations

equivocations

nified by that

leaving matters
do—in the

to drift. Drift

they

Moscow-Peiping direc¬

tion.

Continued from page 6

Equities Investment Program of
New York State Savings Banks

to

her

policy

is

vacuum, in¬
not short of "doc¬

are

of I. I. M. F. before it became

approved list.

issues

a

investment

tains
this

There

are

this approved

on

approved

186

list.

adviser

continuous

our

now

main¬

supervision

list

of

stocks,

ommending additions

or

of

rec¬

deletions

This country has been
enjoying
prosperity, with minor interrup¬
tions, since 1940. The period has

constituted, in many respects, the
longest, most protracted boom in
history. True, there are many

our

elements of strength in the Amer¬

The

changes make such changes desir¬

technological

able.

record

Dulles

case

of

are

Doctrine

retaliation"

would

of

be

massive

"massive

applicable
aggression.

That, however, is not in the cards.
The

same

holds

for

the

Radford

Doctrine of holding China in im¬
balance by such "dynamic" meas¬
as

blockading her coast line.

either

who

are

by

hands are
European Allies

case,
our

our

deadly worried about

ing drawn into

an

Eastern

be¬

show¬

down; and by Asia's acute misgiv¬
ings about alleged American
aggressiveness.

economic

Just because
on

'the

promptly,
be

of

back

equally
multiple

not

purchased
that it will ever

this

list

Prep¬
merely a

is

such

economy,

tion

increases

tory tells
tained

prospertiy,

demands

for

backlogs

in

The

trends,

the

directors

of

F.

a

safeguard

mini¬

continuous study of

conditions,

industry

developments

company

stock

to

market

behavior

guide the choice of stocks for

to

pur¬

chase and, in some cases, for sale.
Since
the worth
of
a
common
stock

will

be

determined

ulti¬

mately by future earnings of the
company
issuing it, we seek to
analyze all factors that will affect
future

earning

power

/

issues

for

I.

I. M.

F.'s

in choosing

portfolio.

are

goods

tend

the

business

since

the

is only a

slight

spring

occurred

last

year

is

susbtantial

a

recession, or whether it
dip in a boom that will

measures

time

our

with the aid

government

taking to sustain the
a

de¬

downturn

has

of

of

go on for some

of

unsatisfied

which

beginning

cyclical

corrected and

are

of

built up.

Whether

the

second

economic

and

by

investment

sus¬

which

recession in which economic

ness

tests

our

But his¬

during

durable

the

popula¬

to be oversatisfied and other mal¬

mands

by

and

our

adjustments develop, have always
been followed by
periods of busi¬

will be purchased until it
has first met the exacting quality
and

in

that periods of

us

new

applied

the rapid

from year to year.

assures

stock

as

advances

maladjustments

savings banks. The list
only that no common

mize risk is

are

stock is

does

be

ican

for mutual

their lesson in Korea and
and

list

first step towards
minimizing the
risk of common stock investment

I. I. M.

subtle

common

will

purchased, by I. I. M. F.

aration

doctrines presuppose actual at¬
tack. But the Communists learned
more

a

or even

adviser

their

it

financial

or

approved

that

mean

In any case, both

to

to

diplomatic

should

In

caught in
beloved "col¬

world

not, and can
scarcely be, translated into action.

in

are

our

the

her¬

save

we

of

effective

join

themselves

progress

security" that was sup¬
posed to protect mankind
against

of

Cambo¬
to

But

meshes

war.

support;

will

lective

losing face and,

intriguing

rapidly
China's
in¬

So,

bring us face to face with
peril that is frightening to con¬

template.

Thailand, thus hoping to

military action—.

and will
a

the

are

Asia's

boycott-4is

ternal consolidation

the

The French

in

Red China.
Even the one
part of the Radford Doctrine that

no pre¬

mechanism

growth

body:

French in
imbalance, but not
enough to justify setting into mo¬

clumsy

the end

mean

our

enough help to Viet Minh to keep

the

unless it is

system of alliances both in
Europe and in Asia.

no
protection against "peaceful"
infiltration provided. China
gives

tion

will disin¬

army

course

used—which would
of

trouble

be drawn

Chiang's

tegrate in due

guerrillas control
part of the country

major

Our

American

as

trines"; but they

bound
pepper,

for

than

concerned, Asia is

ures

current

harm

more

ther

capital.

Formosa is another problem
child.

The power¬

more.

catastrophe brought
by the Truman-Marshall

about

policy of surrendering China.

Communist

the

great chagrin.)

of

in

trophe—a

effect, sacrifice Viet

Nam, possibly
ful

by landing Chiang's troop3
Formosa; or to give up Indoaltogether, possibly saving

Laos and Cambodia.
Any of these
alternatives is verging on a catas¬

armistice that

an

unlimited

war

China

as it was in Korea.
this difference:
here is

possibility of

limited

as

from

Indo-China,

But with

as

dom of action.

ignorance

masses

the

the

attacking C h i n a herself, or
forcing her to divert her forces,

"Anzus"

an

majority of
countries; by foolish mores and
utterly corrupt governments; by

the

is

into

Chinese

lacks

broadening might
good by fur¬
our military free¬

bottomless
of

warfare

army
a

by

is

disguised nature of the threat and

Limited

an

face

and

entering from the north; to

army
make

easy

of

cause

Community.

That leaves the U. S. with three

Henn, Jr.) pointed out:

American Policy in a Vacuum

living cerned, the New Face of American
An
essential
feature
of
the standards of countries which are
foreign policy, much heralded a
Oriental situation is
that, con¬ not able or willing to be rational
year ago,
is rapidly fading out.
trary to the Occident, localized themselves. All
of which has far(It does so in the
Inter-state tensions have
Occident, too,
prece¬ reaching political
relevance—since though in a different
dence over the broader
context.)
issue, the American
humanitarianism
has What else can be
expected—short
i

with

collective security.

drop in the bucket. If Eu¬
nefarious techniques of
advice to a
drowning man that, rope's financial problem is one of
subversion.
being in the water, he should use billions
of
"marginal"
dollars,
the
opportunity to fish.
Asia's problem is one of dollars in Limited
Warfare—Without Limits
the bulk. There is
nothing serious
Local vs. Global
So far as the Orient
is con¬
Conflicts

break

heritage? A fundamental
difficulty is the very nature of
limited warfare. As a recent lead¬
ing article in the U. S. Naval In¬

the

as

the

system the kind of economics it is

Eastern

Over Eastern and Southern Asia

prices have died

On top of it all comes the
Amer¬
ican request for

of

verge

guerrillas

capable of

from

the

elemental level.

ment. A

the

keeps

while

in

None

regime and

Mohammedans
on

the

of

between

and undermines her economy.

war

labor

relations and wages, re¬
ducing its competitive power. In¬
dustrial trouble is fanned
by com¬

tering

Burma,

conflict

overpopulation.

problem (as of Iran's, but self-in¬

the

with

system.

co¬

government

fraction

a

The

Bolshevist

benefi¬

resentment

only

country.

spending policies: when the .boon¬
doggling subsides, the disappoint¬
ment

up

by centrifugal forces operating in
several
major provinces.
Near-

Indonesia

control
over
Syngman
policies, promise to main-

ruthlessly

the

spending by
remote

identified

which the apathetic and illiterate
live in squalor while a tiny

It

linguistic sort. West Pakistan is at
loggerheads

Sumatra's

Rhee's

roots

masses

nationalistic-

the

of

Java's pro-communist

plus the

disastrous

with

gram. the procurement for and the

troops,

the

unbalance

might

vincing indication; at the same
time, it helps to keep Rhee from
proceeding on his own.) Finan¬
cially, a huge American aid pro¬
our

American

to

consequences.

treaty,

peace

opposed

(or lack-of-power) equilib¬

control."

clash

is

colonial

Westerners

is

former

and bases for the latter. Such

one

along the
parallel is not expected The
presence
of
strong
American
a

the

rium

38th

natural

has

Asia, if only because

ex¬

power

entire

the

"under

without

or

that

wonder

arming

story in Asia—with one

exception: South Korea.
Korea, paradoxically, is the

Communism

spontaneous appeal to

Kashmir, it is because

violently
arms

different

capitalism

both lack the instruments of war.
Small

Japan

vs.

powers'

"free"

a

hated

literally at each other's throats on
account of

American assistance.
Korea

of

Lure

complete

a

minority
displays
unrestrained the relative
simplicity of the ob¬
pense. Naguib is more acutely in¬ luxury;
in which free enterprise
jective.
Men fight to win.
The
terested
in
getting hold of the and a society based on contract
political and psychological aspects
Suez Canal than in keeping out are novel concepts.
Most impor¬ of limited
warfare, on the other
the Russians. Israel is the thorn tant is the fact that the Soviets
hand, are difficult to measure and
in the Arab flesh, not the Soviet command respect for their (fake) are
infinitely complex. Dissension
menace.
The armistice is
being role as liberators of colored peo¬
easily arises as to ends and means.
openly and ruthlessly flouted on ples from the white man's "tyran¬ The danger becomes
obscured,
They arrive at this role by nerves
both sides of the Jordan River. ny."
strained, patience ex¬
If Hindustan and Pakistan are not merely pulling strings without en¬ hausted."

flight

Capital

billion.

$2

most

,

"colonial"

the

and

iranc and the Italian

some

private

To

is the white

war

affair which they
try to utilize for their own pur¬
poses—to expand at each other's

French

the

even

conflict.

East-West

Jul"

have
contributed in hardening not only
the German mark, but also the
in armaments—all

ther cuts

Brittanica.

Communism
in

relaxation

pax

Thursday, (February 25, 1954

...

economy

is
at

high level, only time will tell.

But

the

common

der

conservative

stocks

these

must

investor
assume,

conditions,

are
we

buy

that

greater than usual.

term

the

common

stocks

investments,

downturn

in

and

in

un¬

risks

After all,
as

long-

whether

business

comes

Number 5302

Volume 179

.

...

The Commercial and Financial Chronicle

other stock group. It had over
two-thirds of its funds in stocks
that are predominantly defensive
in character, including food, con-

equity portfolio.

our

The investor in

.

stocks

common

minimize his risk by selecting

can

more

defensive issues for his port-

jjolio.

A workable definition of a

opinion it is not economi-

cal for

an

common

Needless to say, we intend to
modify this policy when economic

1955 or 1956, we want to
it well in advance by
minimizing the risks we assume

In my

tainer and retail issues,

in 1954,

be ready for
in

the bank may be invested in com-

financial

and

to

In
or

the average issue to the effects of

we

Let

cite

me

selection
folio by

stocks

of

for

stocks
of

issues.

defensive

electric

Demand

for

cession except for

industrial consumption. And since power sold
for industrial purposes carries a

decline in
of electric energy for this
does not produce a sig-

relatively low rate,
the

use

purpose

a

nificant decline in gross revenues

rule.

a

;as

The

rates

eelectric utilities also
the

more

charged by

are

stable, all

since they have not been

increased materially
Tnflationary
rise
in

despite the
commodity

prices of the past decade. Utilities
not subject to the inventory

care

losses

that

:;stocks
the

,At

affect

can

adversely

in

a

industrial

recession,

time, great techno-

same

logical advances have resulted in
unit

reduced

Jhelp

this

of

that

costs

should

Fund
its

trie

Investors

higher

job than
afford

the

Yet

do.

cost

bank

investors

shifts

of

is

that

when

holdings

complete
small

a

cost

of

security

each

to

fraction
to

do

of

bank

what

funds,

been

formed

since

this Fund
is

and

when

stocks

the

the

in

I.

I.

M.

it

of

risk

to

savings

spreading

banks

Fund increases in

in

to

timing risk
purchases of

their

over

purchase

of relatively
well

a

$200,000
year

of

over a

As

the

size, the cost of

larger total,
corresponding reduction in

a

expense

when prices

banks.

they

eco-

..

^

„

paid

of

than

mortgages
The

or

erage

greater risk in-

attention

timing

to

purchases

stock analysis is required to perform these functions competently.

the

more

must

acquisitions

tends

of

At the

is

reduced

substantially by 1.1. M. F. through

I.

M.

I.

with

reduce

stocks

the

av-

acquired,

Holdings of Common Stocks at Dec. 3t

close

of

yield

F.

on

a

a

earning^ and

M.

F.

Within this short period, the re¬
of the Fund have grown

to

$6,000,000.

over

number

banks

of

of

the

the

vice

for

A

5.01%

as

of

June

a

1953.

Percent of

Value

found

useful de¬

very

stock

investment

for

them.

Today,
stock

hold

we

issues in

marked

a

common

predominance

istics.

The

of

is¬

performance

equity fund
is

56

portfolio, with

our

having defensive character¬

sues

not

over

of jyea
limited period

a

significant.

However,

let

mention in passing that when

me

the

Dow-Jones

suffered

May
the

industrials

aver¬

decline of 8% from

a

15 to its 1953 low point at
middle of September of last
I. I. M. F. had a maximum

year,

approximately 3%. The
Dec. 31, 1953 was 4%.
May 15 value, whereas

on

its

the Dow-Jones industrials
average

1% higher.

was

But the

performance of I. I. Ml
F. is not judged by us and should

Total

not

be

ing

TRADE

savings

have

solving the problems of

common

compared
30,

substantial

mutual

state

that the Fund is

above

stocks held by

organized

was

year ago.

sources

Fund

1953, the indi-

5.19%

was

Shares

RETAIL

I.
a

decline of

Market

.!. M. F.

be

making

It began op¬
erations in May, 1953.

age
av-

Yield and Dividends
cated book

hazard

to

of

cost

Thus, dollar

good way to lessen risk,

stock

common

I.

less than

lower than when

are

higher.

be

bonds.

timing

are

eraging

,

Timmg of Equity Purchases
Because

as

shares will be acquired

year, more

share to the savings

per

prices

stock

Moreover,
through
investing
the same number of dollars each

will be spread over a

analysts

The

as

ferred to this procedure as "diversification as to time."

analytical and portfolio work

with

low

relatively high prices,
One security analyst has aptly re-

advantage

banks.

will

The 1.1. M. F. Today

can

the

period of five years. By the use
of a "doilar cost averaging" pro-

minimum

a

maximum

and

shareholding

the

funds

bank
with

$28.87 from

paidl

was

$13.87

1954,

capital gains.

that will doubtless include periods

stocks

share

per

a»

A divi¬

portfolio,

our

solely to the objective of investing

savings

pay

earned,

capital gains

of

cedure, the investment in equities
is spread over a period of years

common

$15

total

period of
time, should they wish. For example, a bank that wants to put
$1,000,000 into common stocks may

has

to

income

and

devoted

mutual

net

26,

by

invested

organization

an

of

of.

average

resolved

realized

1953

in

purchase

than

quarterly the

and

dend

in?-

some

,

Jan.

I. I. M. F. shares

participating mutual savings banks. Our aim is to
have

returns.

Directors have
out

on

further minimize

behalf of the

on

and

higher

15,

Individual

Every dollar
is

held
at

paid

sues

conducted

F.

book

Oct.

approved

decide

invested

equities
shares

33

reflected

in dividend rates of

dividends to shareholders.
vola-

more

I. I. M. F. shares each

state.

improvement

list

on

banks

this

to

minimizing risk,

solely by and for mutual savings
in

banks

The

creases

relatively low in price, so that
the risk is minimized, we will increase the proportion of such is-

minimum

a

savings

as

are

there is in most mutual invest-

ment

volved,
staff

job

us

times

tile

of

as

savings

A

gas

At

savings bank

any one

to

al-

'when

greater, defensive isheavily favored.
This

are

while

more

job
of security analysis individually,
There
is
no
selling or other
"loading" expense in I. I. M. F.,

utility stocks,
a
percentage than in any

and

in

far

a

would

Mutual

1953 had 18.9%

invested

do

can

that invests in shares of I. I. M. F.

with specialized training and extended
experience
in
common

Dec. 31,

resources

F.

this

elec-

on

M.

can

able.

•cession conditions.

of

cal

nomic and financial conditions indicate that such action is desir-

to

Institutional

I.

policy

times

benefit from the
higher return
provided by equities, and the tax
advantage where it is applicable,

equities.

I.

At

is

permits

of the assets of

will be more interested in ac-

or

sustain earnings
industry even under re-

greatly

only 3%

selection

described.

risk

sues

thorough and continuous analyti-

decline

they be purchased with minimum
risk.
I. I. M. F. thus provides threefold protection for the common
stock portfolio of a savings bank,
First, from the very large number of common stocks that savings
banks can buy is culled a limited
group meeting our high quality
standards. This group constitutes
the approved list. Secondly, from
this approved list stocks are selected for investment when they
can be purchased with what professionally trained analysts regard as a minimum risk of depreciation or loss. Thirdly, thd
portfolio is subject to continuous,
intensive supervision, with sales

is stable in a re-

power

the

since

of

our

about the best example

are

prices

stock

investment,

investment values. At such times,
these desirable but far more volatile groups of stocks are likely
to meet the exacting requirement

port-

our

large investment in utility stocks.
The
electric
and
gas
utility
reference to

when

stock

portfolio

ready

employ-

quiring stocks that benefit from
prosperity and from growth at
prices that will make them good

example of how

an

minimize risk through the

\ve can

a

most

mon

sharply for whatever other reason,

aj business recession.

is

its

savings bank

the expense of

assume

at

period of business recession,

one

stock

common

individual

ing such specialized personnel for

conditions change,

that is much less vulnerable than

defensive

(909)

I

any

judged by its record dur¬

one period of time, short
long. It should be judged solely
by whether this Fund will secure

or

EDITOR'S NOTE: The Institutional Investors Mutual

1,300
2,510

operations
held

on

May

1.12

78,751

1.29

H. L. Green Company, Inc

83,700

1.38

2,000

Jewel Tea Company, Inc

84,500

1.39

1,600

Montgomery Ward & Co., Inc
G. C. Murphy Company
J. C. Penney Company

89,600

1.47

82,650

1.36

104,300

1.71

$591,751

1, 1953 and according

68,250

2,700

Fund, Inc.

to its first
common stocks of 56 companies represent¬
ing 13 industries as of Dec. 31, 1953. As of that date, 63 of the
130 mutual savings banks in New York State were share¬
holders in the Fund. The following is from the Annual Report.
started

<annual report

First National Stores, Inc
Food Fair Stores, Inc

9.72

$107,625

1.77

1,900

1,400
>

INSTITUTIONAL INVESTORS MUTUAL FUND,

INC.

Classification

Market Value of Investments by Industry

RUBBER

Close Of December 31, 1953

Market

1,400

Total

$118,113
96,950
137,275
103,950

1.94
1.59
2.25
1.71

1,700

:1,400

Union Carbide & Carbon Corporation

1,400

$456,288

,

2,300

General Shoe Corporation

$97,175

1.60

2.200

Can

3,400

2.69
5.22

DRUGS

76,875
100,875
105,850

1,700
3,200
1,800
2,200
2,-300

1

Mead Johnson & Co
Chas. Pfizer & Co., Inc
Sterling Drug, Inc

1.26
1.66
1.74

$283,600

3,000
3,000
22,900

4.66

American

Tobacco

CompanyLiggett & Myers Tobacco Co
Lorillard (P.) Co

at

84,150
144,000
133,950

Beneficial Loan Corporation...
C.I.T. Financial Corporation
Commercial Credit Company

cost

a

and

smaller

1.38
2.37
2.20
5.95

R. J. Reynolds Tobacco Co., Class "B"

American Gas & Electric Company..
Carolina Power & Light Co.—

dollar

per

Fund

Two With Calif.
LOS

to

The

|

grows

Investors

Financial

Chhonicle)

ANGELES, Calif. —Harry

2.22

103,200

1.70

96,900

1.59

134,300

2.21
7.72

114,263

1.88

70,550
69,600
66,825

1.16

1.10

H. L. Robbins &

89,925

1.48

Street.

Cincinnati Gas & Electric Company
Commonwealth Edison Company
Consolidated Edison Co. of N. Y., Inc.
Consolidated Gas, Electric Light &

J.

Allen

been

and

added

fornia

Don

W.

the

to

Investors,

have

Cole

staff

of

Cali¬

Wilshlre

3924

Boulevard.

Joins H. L. Robbins

1.14

(Special

to

The

Financial

Chkonicle)

WORCESTER, Mass.—Robert P.
Lindberg

is

A. J.

now

affiliated

with

Co., Inc. 40 Pearl

Wangler Opens

70,200
84,800

1.15

61,600

1.01

86,400

1.42

ing in

69,275

1.14

offices

71,500

1.17

New York City.

85,200

1.40

67,987

1.12

73,238

1.20

66,412

1.09

1.700

Louisville Gas & Electric Co

5,200

Northern

3,200

Oklahoma Gas & Electric Company
Philadelphia Electric Company
Virginia Electric Power Company

2,100
2,700

2,300

FOOD

the

as

2,700

$362,100

23,800

State

$135,300

Power Co. of Baltimore

1,400

22,200

York

F.,
and now operated,
satisfactorily for the
savings
banks of
New

this

Gulf States Utilities Company.
Idaho Power Company
Kansas City Power & Light Company

3,200

FINANCE

*4,800

do

mutual

ELECTRIC & GAS

3,300

$317,550

will

convinced that I. I. M.

set up

(Special

2.53

163,500

Continental Can Co., Inc

are

now

$469,700

1,600
3,800

7.49

154,050

Company

American

:3,000

We
as

TOBACCO

CONTAINERS

:3,900

mizing the risks involved.

in size.

SHOES

1

CHEMICAL

E. I. duPont de Nemours & Company
Hercules Powder Co
Texas Gulf Sulphur Company

The B. F. Goodrich Company

Percent «f

Value

Shares

mutual
savings
banks
the
higher rate of return while mini¬

invested that will become smaller

*

COMMON STOCKS:

1,100

__

for

States

Power

Co.

(Minn.)

Wisconsin Electric Power Company..

1.39

Ambrose

J.

Wangler is

engag¬

securities business from

a

at

220

Madison

Avenue,

Now Watson-Lamoreux
SEATTLE,

Wash. —The

firm

name

222,300

American Chicle Company

112,987

1.86

22,000
.1,900

The Borden Company
Corn Products Refining Co
General Foods Corporation

1,800
1,000

National Dairy Products Corporation
Sunshine Biscuits, Inc

120,500
110,438
113,762
117,450
72,000

1.98
1.81
1.87
1.93
1.18

$647,137

of

pany,

1411 Fourth Avenue Build¬

10.63

1,500

$1,147,775
American Telephone &

Telegraph Co.

$124,900

2.05

Lamoreux,

Inc.
and

Vice-President

General American Transportation Corp.

2.32

Total Common Stock

U. S. TREASURY OBLIGATIONS:

$188,000
$5,748,801

94.43

(Special

1

SAN

$300,000

PETROLEUM

22,000

1.62
2.12
1.76

123,200

,

$98,800
129,000
107,000

2.02

106,500
116,325

1.75
1.91

132,825

13.36

$302,531

4.97

2.18

$813,650

U. S. Treasury Certificates of (Indebt¬
edness 2%%, due Sept. 15, 1954

23.000
2.200

22,300

Skelly Oil Company
Standard

Oil Company

—_

of California

United Carbon Company

**.




the

with

to

The

Financial

has

firm.

CASH AND

OTHER ASSETS:

Cash
,

.

,

,

Prepaid Expense
Other Assets (net)

Net Assets

Chhoniclf)

Hill

become

Richards

Montgomery Street.

—

AI

associated
&

Co.,

155

He

was

for¬

merly with Davies & Co.
$6,060
14,287

0.10
0.23

16,405

0.27

$36,752

1,600

of

FRANCISCO, Calif.

Merrill

Continental Oil Company
The Ohio Oil Company
Phillips Petroleum Company
Shell Oil Company

is

Lamoreux

Boyd

3.09

Value

Par

1,900
22,400

Forest Watson

With Hill Richards Co.
136,810

$141,550

Com¬

&

ing, has been changed to WatsonPresident

METALS

Climax Molybdenum Company...—

Watson

MISCELLANEOUS

4,700

23,800

18.85

TELEPHONE
800

Forest

0.60
100.00

$6,088,084

Hugo J. Lion
Hugo J. Lion, partner in Bache
&

Co.,

away on

New

York

Feb. 11.

City,

passed

34

The Commercial and Financial Chronicle

(910)

Continued

from

new

dealers

car

Indushy

1953 record.
Meanwhile, most United States

and

slightly higher levels the past week

spurted

over the preceding week, according to
This year's 1,000,000th vehicle completion
Tuesday of this week.

as

3%

Loadings Continue Under Previous

Loadings of

Trade Volume

decreased

679

Latest

revenue

cars,

Loadings

or

totaled

623,706

cars,

decrease

a

of

57,898

cars

8.5% below the corresponding 1953 week, and a decrease
070 cars or 15.5% below; the corresponding 1952 week.
*

gain stemmed principally from Chevrolet, where
production was up 10% (Some 2,600 units less than one-half day's
output) over a week ago; the rise came from partial operations
Friday (about 40% of normal), whereas in four prior weeks all
final assembly had been down on Fridays.
Oldsmoblie also was
at a higher pitch, while Cadillac put in its second six-day week
in a row, and Ford Division had eight plants working Saturday,
compared with only three last week.
Chrysler output climbed 12% as all divisions, excepting
DeSoto, worked a five-day week; the latter plant was down on
Monday of last week.
Hudson final assembly was at a standstill
Bend

U. S. Auto

factory was

ventory of field stocks.

Meantime, Packard

returned

to- be

as

above the level of

a

year ago

industry, "Ward's" states, turned

cars

last

week, compared with

vious week.
Last
made

January, 1953, with
Compared with the
decrease of 7.8%.

customary in the first month of the

corporations

with

compared

as

that showed

27

in

January

the number
a

year

of

ago,

of

have

the

failing

The

to

Feb.

$7.11

on

length of time needed to reduce
their size and the need for steel.

While this inventory liquidation is going
insisting that mills not make deliveries ahead

on,

of

them

steel

users

in

equivalent to

was clamoring for steel from
price, this trade journal notes.

any

To
are

compete

absorbing

point

a

80%

an

While

.

mills.

one

steel

huge

any

mills
or

over

him

American Iron

a

and

week

For the like week

duction 1,802,000 tons.

of Jan.

Steel

Institute

from

$7.09

two

over

&

i

that

a

year ago

was

75.6% and

total

and

one-half

of

the

price

pound

per

weather

over

a

market

and

were

mild

week

as

futures

prices

,

Cocoa

registered

further

'

markets

price

reflected

support

and

the

while

by increased

receipts

throughout the belt.
Oats
largely in sympathy with

accelerated
to

chain

new

a

in

the

all-time

stores

main

supporting

had

latter

,

purchasing

some

from

the

areas

the

other

was

reported in¬
level

year-ago

areas

reported

sub¬

declines.

week

level

of wholesale

trade,

somewhat from

rose

the

of

preceding week
moderately below

remained

in

crease

highs follow¬

advanced

individual

to

The

current

increase

in

in

traders

the

buying, the
steady. De¬

was

somewhat

were

than

recent

became

demand

their

New

export

a

was the
continuing increase in gov¬
holdings although loan entries during the week ended
February 5, dropped to 106,500 bales, from 170,200 in the preced¬
ing week.
Domestic mill demand was fairly active with sales
reaching moderate proportions as offerings of qualities in best

more

weeks

as

accustomed

for

short-term

orders.
I

Department

stores

country-wide basis
Federal

sales

Reserve

on

a

taken from

as

Board's

in¬

dex, for the week ended Feb. 13,
1954, decreased
1%
below
the
level

of

the

.preceding week.

previous

decrease

week,

of

ended

1%

Feb.

was

'Man.

1

ment

week

was

For the four-weeks

1954,

Feb.

stores

decline of

a

For the period

13, "1954, depart¬
registered
a

sales

of

Retail

In

1954,

(revised)

reported.

decrease

6,

that of the similar

13,

to

Feb.

2%

reported from
week in 1953.

1 %

below

the

trade

in

responded

New

cor¬

;

York

last

favorably to the

balmy wreather and spring apparel
purchases

the

Sales of

year.

responding period of 1953.

pound.

was

unchanged

moderately under

number of orders

part

substantial

influence

were

The volume
in

re¬

fairly large aggregate and encouraged the
belief that export shipments in the latter half of the
season will
witness a decided improvement.

ernment

as

creases

most

during the past six.weeks.

trade which reached

'

The amount of electric
energy distributed by the electric light
power industry for the week ended
Saturday, Feb. 20, 1954,

spooty

prompt

spot quotation at 35.15 cents a pound, contrasts with 33.85
at the start of the year, and with 33.55 at this
time a year ago.
The

year-

1953 level.

liveries

275.81

York

pro¬

the

was

previous

Television

1

to

2%

year

lifted

sales

above

volume

the

like

the

Federal

by

week

a

ago.

According

Warehouse stocks of

evidence

below

volume

tne

on

at

cocoa rose
slightly to 79,000 bags,
earlier, and compared with 72,864 bags a year
ago.
Lard was firm with loose lard selling at 16 V4 cents a
pound,a
new
high for the year.Following early weakness, live hog
values trended higher, aided
by advancing wholsesale pork prices
and smallest market receipts for
any February week since 1947.
Spot cotton values continued the gradual uptrend which has

in

prices.

period and slightly below^ the
preceding < week.
Furniture and

previous, and with

from 78,588 a week

been

increased

ago

but

price gains last week.
The advance reflected
strength in the London market, high asking
prices in producing countries and a scarcity of
offerings in this

the

,

easier

rose

in

comparable year-ago period.
While there was no market in¬

closed

week

under

was

leading

Another favorable factor

,

index
a

wheat

weather

rising trend in coffee

volume

the

large part of the mid-western wheat

somewhat

be

year-

The recent

vegetable

somewhat

was

1

the

prices

and

to

Spending for house furnishings

the

year.

prices for bagged coffee by five cents

the actual weekly production

;

resulted
and

of

unsettled, with price movements irregular.
cereal

the

:

Beef

pork

fruit

week

and its chief function is to show the gen¬

bread

while

spell

a

of the

1, 1953.




the

ing announcement that

ago.

month ago the rate

A

of

above

1953.

cold

Brad¬

last

the corresponding 1953 date, or

strength in the cash

+1

Southwest

was

fresh

appliances

prices at the wholesale level.

were

period

+2; South
and

in

as

period

the

country.

announced

Electric Output Eases in Latest Week
and

rise

prices trended lower, influenced

cash

rye

The

was placed at
2,240,000 tons. The operating rate is not comparable
because capacity was lower than
capacity in 1954. The percentage
figures for last year are based on annual
capacity of 117,547,470
as

use

sum

to

volume

level

from

Trading in the domestic flour market was slow last week
following rather substantial bookings of hard Winter and
Spring
wheat
flours
in
preceding weeks..
Business in family flour
showed some improvement as
many buyers extended their cover¬
age for the next three months.

The industry's ingot production rate for
the weeks in 1954, is
now based on annual
capacity of 124,330,410 tons as of Jan. 1, 1954.

tons

mild

on

year

varied

1953

somewhat lower.

was

the

index, compiled by Dun

further

—2

Midwest

bedding

Trading in grain and soybean futures on the Chicago" Board
slightly last week.
Daily average sales totaled
39,200,000 bushels, against 41,000,000 a week
previous, and 72,300,000 in the same week a year ago.

a

•

74.6% (actual)

com¬

a

estimates

-f-1 and Northwest 0 to -f-4.

same

Fourteen

more,

re¬

esti¬

below to 3% above

poultry
sales
continued
moderately above the like

of Trade declined

price and
his competitors, concludes "Steel" maga¬
gave

the

and

operating rate of steel companies having 96.1% of the steelmaking
capacity for the entire industry will be at an average of
72.6% of
capacity for the week beginning Feb. 22, 1954, equivalent to
1,730,000 tons of ingots and steel for
castings, as against 1,779,000 tons
and

or

of

was

preceding week and at about the

corn.

are

zine.
The

price

a

comparable date last

holdings

Corn
in

an

the preceding week
This output is
the capacity figure used last year.
another for business, steel companies

Consequently, his lower costs

the

ports of dry
belt.

on

users

on

Continued

a

earnings advantage

1953.

$100,000

to

ago

commodity price level, as measured by the Dun
daily wholesale commodity price index, showed

Bradstreet

are

benefiting from freight absorp¬
tion by mills than from straight reduction in
prices, not all steel
consumers are happy about
freight absorption, it adds.
A steel
user in
Chicago finds that freight absorption is lowering his ad¬
vantage over his competitors farther away from mill sources of
steel.
When steel was in strong demand and customers had to
pay
all of the freight from the mills to their
plants, the Chicago buyer
didn't have as big a
freight bill as his competitors farther from
the

of

volume

week

comparable

Coast

-f-5;
Food

184

to

the

..

change in the past week.
The
February 16, as compared with 276.45

freight charges and making scattered

more

general

little

over

rate

with

Last week

fell

more

Changed From Week Ago

price revi¬
producer of seamless boiler tubes cut prices
on
hot-rolled and cold-drawn grades of that product
approxi¬
mately 10%, this trade weekly reports.
sions.

or

in

the

cific

re¬

The general

contrast

Nevertheless, steel demand is still good enough that
operated at 74.5% of capacity in the week ended Feb. 21,
increase of half

liabilities

represents the

Grain markets

time

some-

by the following percentages: New
England +2 to +6; East and .Pa¬

in

Wholesale Commodity Price Level Little

de¬

was

when everyone

place and at almost

occurred

dollar

Regional

stantial

index

foods in

278.16

ago

which

a

The

year

177

16, the highest level in

eral trend of food

reduced.

a

and

increase of 14.7%.

an

&

to

176

corresponding week of

It compared with $6.20

years.

"Steel," the weekly magazine of metalworking.
Late last fall when steel demand started to
drop off, it was
quite apparent that many buyers had built up sizable inventories
of steel, even though steel
supposedly was hard to get.
It was
commonly said then, states this trade magazine, that demand for
steel probably would be
sluggish until the inventories had been
on

the

had

food

registered

says

pendent

the

concerns

wholesale

good example of why inventories of steel
lasting longer than' most people thought they would,

been

was

from

corresponding level of

from

Moderately

involving liabilities of $5,000

street, Inc.,

31

buying

to be from 1%

—3

Wholesale Food Price Index Reaches Highest
Point in Two and One-Half Years

Output Scheduled at Lower Rate

level

by Dun & Bradstreet, Inc.,

ago.

pared with 28 in the previous week.

against

as

above

compared with 29 in

in¬

new

trade

the

a week
ago, but exceeded the 147 recorded in this size
group last year. A slight dip appeared among small failures, those
with liabilities under $5,000, which were off to 31
from 33 and

year

record

margin.

total

mated

comparable weeks of 1953 and 1952. However, failures
below the prewar level of 293 in 1939.

The

Deep in Texas is

tail

from 244

declines.

Steel

pre¬

Although the lowest in the last four weeks,

well

were

Casualties

slightly exceeded the 9,468 recorded in January, 1953, and were
14.2% more than the 8,357 witnessed in January, 1952.
Comparisons of the individual states were irregular and re¬
increase

to.-the

diminished

The

mained 27%

since January, 1948. Last month's business charters at 9,543, rep¬
resented a gain of 7.0% over the December count at 8,915. They

an

112,-

in the like 1953 week.

street, Inc., reports.
casualties

the

there was a
definite upturn in the rate of corporate charterings during Janu¬
ary, reports Dun &
Bradstreet, Inc.
New stock corporations
formed in January rose to 9,543, the highest since last March's
9,659, and with that exception, the highest for any previous month

had

estimated

an

Commercial and industrial failures declined to 215 in the week
ended Feb. 18 from 277 in the
preceding week, Dun & Brad¬

Geographically, the best year-to-year gains appeared in the
regions, up 46.6 and 41.4%, re¬
spectively.
Declines from a year ago were shown in the South
Central, West Central and New England regions.

states

out

108,895

Business Failures Decline

East Central and Middle Atlantic

that 21

what

to

including New York

a

close

.

*

"Ward's" estimated Canadian plants turned out
9,438 cars and
2,050 trucks last week, against 9,411 cars and
2,244 trucks in the
preceding week and 7,945 cars and 1,886 trucks in the compar¬
able 1953 week.

Building plans filed in New York City in January called for
expenditure of $32,068,684, up 11.5% over last year's $28,765,075, but 42.6% less than the December figure of $55,856,712.

vealed

-

:

week, the agency reported, there were 22,674 trucks
this country, as against 21,530
(revised) in the previous

in

an

is

;

for the sixteenth successive month.

$306,568,308, reports Dun & Bradstreet, Inc.
December volume of $372,858,042 there was

As

:

(revised) in the
weekly production was 125,540.

A year ago the

week and 26,489

a week's inactivity due to parts shortages.
Although building operations reflected a seasonal decline last
month, the total valuation of building permits for January rose

were

year ago. - -

considerable

The
130

tion, following

The January permit aggregate for 215 cities
amounted to $343,938,229, or 12.2%
above

a

Installment

-

.

Week

the. early
;JiS53 levels but .the total amount
Automobile output, fqr. the'latest week rose above a week
ago>
rqUlconsumcr credit outstanding
a result of a step-up in-Chevrolet
production of 10%, according ;
tapped the year-ago mark by a
"Ward's Automotive Reports."

to

to produc¬

».

somewhat below the high level of
the preceding week but continued

114,-

or

Output -Rises-Ahav^cW eek Ago

By Increase'at^'hevrolet

week, while Studebaker's South
shut down all week as the company took in¬

Registers

Wednesday of last week;

on

or

of

that

ol

mod¬

Retail sales in the period ended

The week's

Tuesday

declined

Moderate Contraction in: •"

freight for the week ended Feb. 13, 1954,
0.1% below the preceding week, accord¬
ing to the Association of American Railroads.

the
was

last week's production at an estimated 134,804 cars and trucks, compared to 130,425 a week earlier and 152,029
in the same 1953 period.

and

in" the

purchases

markets

erately to 131,400 bales last week,
137,900 the preceding week,
and compared with
86,500 a year

Week and Year Ago

"Ward's" placed

Monday

Reported
spot

from

1952.

vehicle output

statistical agency.

ume.

a

ago.

Car

truck producers op¬

at

on

the like week in

,,

car

erated

due

ten

figure represents

decrease of 133,000,000 kwh!
below the preceding week, but an increase of 355.000.000 kwh., or
4.3% over the comparable 1953 week and 1,090,000,000 kwh. over

Continuing, it added Feb. 10 used cars stocks at
dipped under the Jan. 31 and were 4% below

the Nov. 30,

almost

demand continued limited in vol¬

The current

tric

The State of Tiade and
units, it stated.

estimated at 8,551,000,000 kwh., according to the Edison Elec¬
Institute.

was

5

page

Thursday, February 25. 1954

...

to

Board's

serve

stores sales in

index

Re¬

department

New York City for

the

weekly period ended Feb. 13,
1954, registered an increase of 2%

above the like period of last
year.
In
the preceding week, Feb.

6,

1954,

an

increase of 1%

(revised)

reported
from that of
similar week of 1953, while
was

the

four

1954,

an

weeks

ended

increase of 3%

ported.

For

the

to

13,

1954,

Feb.

1%

was

the

1953

registered

13,

was

re¬

Man.

1

increase

of

that

of

over

period.

♦Comparison
Jan. 4-9

week

5-10 week

for

Feb.

period
an

the

in

period
in

1954

1953.

begins
and

with

with

the

the

Jan.

Number 5302

Volume 179

.

.

The Commercial and Financial Chronicle

.

The following statistical tabulations

Indications of Current

Business

(911)

latest week

Activity

or

month available.

Latest
AMERICAN

IRON

steel

Indicated

STEEL

AND

operations (percent of capacity).

Previous

Month

Week

Ago
75.6

1,779,000

1,802,000

Crude

Latest

(net tons)

condensate

and

§1,730,000

-Feb.28

2,240,000

Total domestic production
lons

output—daily

Feb 13

6,321,700

6,271,250

6,332,550

117,030,000

6,879,000

6,968,000

7,017,000

—

Ago

208,846,000
188,315,000
20,493,000

214,978,000

214,007,000

194,108,000

194,611,000
19,360,000

38,000

33,000

*
___

24,421,000

24,344,000

24,163,000

2,738,000

2,836,000

19,444,000
14,147,000

19,806,000

18,709,000

10,883,000

10,882,000

243,510,000
«1,773,000

238,122,000

239,877,000

7,545,000

3f641,000

$265,768,000
157,258,000

$273,830,000
154,308,000
10,225,000
64,437,000
28,770,000

$225,052,000
120,442,000

Benzol

2,708,000

10,683,000

10,978,000

8,499,000

8,549,000

8,923,000

8,773,000

___Feb. 13
Feb. 13

175,908,000

171,972,000

165,551,000

20,041,000

21,056,000

25,873,000

21,815.000

73,754,000

78,468,000

99,675,000

74,978,000

Feb. 13

45,901,000

45,885,000

49,066,000

45,954,000

(barrels)

—

(barrels)

*

(barrels)

products

imports (barrels)
consumption domestic and export

20,837,000

36,000

154,686.000

Feb. 13

output

output
(barrels)

imports

Indicated

10,528,000

——Feb. 13

Residual fuel oil output (bbls.) —
:—__Feb. 13
Stocks at refineries, bulk terminals, in transit, in pipe lines—

oil

Refined

oil

gasoline

output

Crude

23,522,000

2,843,000

Feb. 13
Feb. 13

crude

Natural

6,544,500

;r

(bbls.)

Kerosene output (bbls.)
Distillate fuel oil output

(barrels of 42 gal¬
'

each)

Domestic

of

—Feb. 13

gallons each)
Crude runs to stills—daily average (bbls.)
output

Year

Month

Imports

(bbls.

average.

42

Gasoline

Previous

A

PETROLEUM INSTITUTE:

oil

either for the

of November:

ingots and castings

AMERICAN

are

Month

99.4

Equivalent to—
Steel

Dates shown in first column

Ago

*74.6

§72.6

.Feb. 28

production and other figures for the

cover

Year

Week

INSTITUTE:

Finished

Kerosene

(bbls.)

Distillate

fuel

Residual

Revenue

(

at—

(bbls.)
—:
i

;

(bbls.)

at

oil

(bbls.)

at——

at

AMERICAN

OF

.

———

10,323,000

(barrels)

U.

construction

624,385

619,871

681,604

611,995

582,053

665,031

Domestic shipments
Domestic warehouse

Public

Dollar

State and

coal

and

lignite

53,300,000

64,865,000

48,505,000

48,227,000

70,356,000
51,844,000

62,649,000
34,393,000

Feb. 18

4,795,000

16,638,000

18,512,000

7,595,000

7,835,000

8,180,000

8,350,000

590,000

651,000

685,000

527,000

.

SYSTEM—1947-49

AVERAGE

==

(in

output

FAILURES

(COMMERCIAL

BRADSTREET, INC.
IRON AGE

steel

(per

Pig ircn

(per

gross

Scrap steel
METAL

INDUSTRIAL)

AND

—

DUN

Straits

M. J.

at
(New York)

tin

St.

176

1

4.634c

$56.59

$56.59

$55.26

$25.33

$26.67

$28.50

Other

4.376c

$56.59

.

$43.67

Group
Group—:

—

35

11

26

26

27

19

20

29.700c

29,675c

24.200c

Farm

29.350c

28.675c

34.575c

Public

85.250c

construction

utilities

:

10.000c

11.500c

98.97

98.42

97.03

95.30

109.24

108.88

107.27

108.16

Nonresidential

114.66

114.27

112.19

111.62

Industrial

111.07

111.07

109.42

110.34

Educational

108.88

108.70

107.09

107.27

Hospital

102.30

100.98

103.47

Other

107.09'

106.92

105.00

106.04

Military

109.24

109.06

107.80

107.62

Highways

111.25

110.88

109.24

110.70

Sewer

23
23
23
23

other

102.63

.

*

/

2.61

2.64

3.23

3.32

2.92

2.94

3.05

3.11

3.20

3.15

and

and

3.24

AND

INC.—Month

3.33

3.32

3.69

3.54

3.45

3.39

Wholesale

3.21

3.22

3.29

3.30

3.10

3.12

3.21

3.13

Construction

425.6

422.7

417.6

410.6

(

275,060

223,396

&

228,571

243,316

245,665

91

89

91

95

eb. 13

355,213

377,082

390,294

514,273

number

107.05

107.17

107.83

Customers'

:

192

_.

Dollar

863,821

number

Feb.

$44,463,075

$44,438,780

$38,131,438

Retail

sales by

Round-lot

867

813

647

$23,731,000

$9,107,000

4,241,000

2,590,000

».

8,623,000

9,757,000

8,009,000

3,166,000

4,154,000

2,735,000

3,134,000

1,871,000

868,000

-$29,592,000

$43,754,000

$23,309,000

.

liabilities
service

__

liabilities-.

Feb.

8,831

10,348

663,498
8,092

Feb.

879,346

930,485

660,406

$38,117,821

$39,698,255

$27,318,721

Feb.

257,590

296,150

208,270

266,590

'257,590

296,150

208~270

266,590

350,500

354,870

dealers—
sales

5,930

In

Feb.

—

Round-lot purchases

of

—Feb.

:

6

OF MEMBERS

ACCOUNT

Total Round-lot

344,460

380,960

TRANSACTIONS

•

i

sales

—

261,770

'an< 20

9,707,950

9,172,770

8,397,870

—

9,523,230

8,581,660

£10,322,000

$78,526,182

$107,331,350
21,296,242

$111,022,388

21,088,581

99,614,763

128,627,592

127,962,917

4,089,491
95,525,272
61,863.458

4,168,715

4,167,939

124,458,877

123,794,978

90,617,234

90.408,039

ISSUES IN

purchases

SELECTF.D INCOME
RYS.

961,350

742,990

867,250

of

134

BRITAIN-

of

Dec—

1

95,580

150,920

583,430

685,170

Income

1,040,790

995,930

679,010

836,090

Other

305,350'

187,410

191,790

Depreciation

5.500

10,500

22,900

16,500

299,810

321,960

143,610

338,460

149', 110

361,384

349,882

341,700

38,030

23,300
223,297

300,152

462,270

495,095

246,597

353,702

1,657,714

1,616,582

1,272,100

1,361,750

—

available

U. S. DEPT.

282,080

234,240

124,380

1,595,245

950,337

1.186,332

1,825,770

1,829,485

1,074,717

U.

57,178,847

63,993,961

61,296,222

23,188,644

47,577,619

7,456,710

6,723,082

10,059,211

2.84

3.68

3.71

$275,000,000

$275,000,000

274,848,511

275,168,120

267,402,058

75,097

taxes

41,543,024

75,638

48,176

$274,923,609

$275,243,758

$267,450,235

561,209

572,857

612,775

$274,362,399

$274,670,901

$266,837,459

637,60Q

320,098

8,162,540

appropriations:
stock—

stock

of income

face
any

to

;

fixed

,_i

charges—

STATUTORY DEBT LIMITATION

—As of Jan.

31

(000's omitted):

amount

that

may

be

outstanding

time.

Outstanding—
Total

gross

Guaranteed

public

debt

obligations

r—

not

Treasury

OF
110.5

110.5

110.9

109.6

16

98.0

98.2

98.4

98.5

—Feb. 16

105.1

104.7

105.9

105.3

__Feb

owned

by

the

;

obligations
Deduct—other
'

_Feb. 16
—3

92.3

91.1

95.8

_,_Feb. 16

114.3

114.4

114.5

112.8

cruderuns. fBased on new annual capacity of 124,330,410 tons as of
basis of 117,547,470 tons.

Iflncludes €19,000 barrels of foreign

against the Jan. 1, 1953
tNumber of orders not reported since

—

outstanding public debt oblito debt iimitatlon

gatiqns not subject

97.6

Grand

total

outstanding

Balance




2*977,494
87,430,545

42,682,178

$275,000,000

Income

GOVT.

at

2,938,671
87,678.563

43,002,520
24,440,232

Total gross public debt and guaranteed

-t-

as

2,903,355

____,

16,940,529

58.960.103

preferred

Total

charges

chargfes.

(way & structure & equipment)

common

S.

1,401,302

-

.

Revised figure.

fixed

income

income

On

214.970

1,543,690

Feb. 16

products
foods
—

for

fixed

from

53,550

457,065

I

f

deductions

Dividend

Ratio

CLASS

income

deductions

after

Federal

302,710

38,670
423,600

3an- 30

—

Jan- 30
NEW SERIES
(1947-49 —100):

Income

211,510

3an- ^0

PRICES,

Miscellaneous

201.010

322,710

S.

income

179,710

297,000

U.

income

816,220

sales

1954,

127

Commerce Commission)—

railway operating

820,280

3an- 30

Processed

1

.

November:

220,510

—

1

ITEMS OF

(Interstate

Jan< 30
*an- 30
Jan- 30

Jan- 30

Commodity GroupAll commodities

*

GREAT

BANK, LTD.—Month

999,330

Total sales

Jan

1

£22,555,000

Total

;

—

Short sales

Meats

RESERVE

of Jan.:

£3,345,000

Month

—

Farm

FEDERAL

132

Net

———3an- 30
Other sales
—Jan. 30
Total sales
3an 30
Total round-lot transactions for account of members-

—

1

125

O11

transactions initiated off the floor—
purchases
—

LABOR

59,836

125

Other

Jan- 30
—3an- 30
Jan. 30

Total

WHOLESALE

THE

8,697.510

Jan- 30

sales

Other

125,133

89,193

124

Net

Short sales

Total

112,244

(tons

Unadjusted

8,435,740

10,134,230

initiated on the floor—

purchases

Short sales

81,625
108,010

77,091

stocks at end of period

OF

—Jan. 30

Total sales

Other

426,280

183,790

FOR ACCOUNT OF MEM¬
DEALERS AND SPECIALISTS:

sales

Other

88,732

123,296

108,121

(tons of 2,000 pounds).

SYSTEM—1947-49=1 Oft—Month

in stocks in which registered-

purchases

Other transactions
Total

*an- 20

350,460

"*an- 30

Short sales

Total

84,342
111,553

pounds)

MIDLAND

■

BERS, EXCEPT ODD-LOT

Other

A.

copper

NEW CAPITAL

—

—

sales

Transactions of specialists
Total

'

pounds).

sales—

Total sales

ROUND-LOT

January:

fabricators—

(SHARES):

Short sales

Other

S.

2,000

of

A.—

pounds)—

INDUSTRIAL PRODUCTION—BOARD OF GOV¬

EXCHANGE AND ROUND-LOT
FOR

2.000

(tons of 2,000
to

ERNORS

STOCK SALES ON THE N. Y. STOCK
STOCK TRANSACTIONS

TOTAL ROUND-LOT

month

S.

-

of

Seasonally adjusted

by dealers—

Number of shares

U.

Refined

Feb.

sales

(tons

Refined

873,849
$35,217,630

Short sales

Other

INSTITUTE—For

Crude

879.779

sales——
sales—

Number of shares—Total

39

3,238,000

liabilities

Deliveries

value

78

64

■

liabilities

Construction

$44,249,552

940,833

89

60

number

66

334

$11,431,000

1,036,903

888,177

130

85

382

86

number

Copper production In U.
1,004,092

Feb.

193

79

450

Wholesale liabilities

COPPER

963,701

Feb.

short

5

107.17

-Feb.

Customers' other

13

61

9

i

/

service

Commercial

—

56

13

56

BRADSTREET,

2*17,420

237,563

(customers' purchases) t—

:—;?r
Odd-lot purchases by dealers (customers' sales) t—
Number of shares—Total sales

115

9

number

Commercial

ODD-LOT ACCOUNT OF ODDSPECIALISTS ON N. Y. STOCK

Dollar value

145

34

of January:

Manufacturing

Total

216,205

'eb. 13
—"eb. 13

Number of shares

106

51

:__—

Retail number

3.23

SECURITIES EXCHANGE COMMISSION:

Odd-lot sales by dealers

31

92

-13

public service enterprises—_

STOCK TRANSACTIONS FOR

—

37

63

/.

,

FAILURES—DUN

Total

DEALERS

132

35
85

building

'

BUSINESS

3.61

—Feb. 13

134

21

water

3.34

PRICE INDEX—

331

123
155

21

,

facilities

naval

—

"^eb. 13

100

336

125

nonresidential

3.33

activity—
(tons) at end of period————

47

155

institutional

and

3.59

——

734

39

333

_

;

3.08

3.11

ASSOCIATION:

—

8

753

122

Feb. 23

1

building

9

35

___

44

202

712

1

building

Conservation and development—
All other public

3.27

^

29

47

263

7

.

construction

Miscellaneous

3.21

Feb. 23

44

46 ■'

'

2.57

™

97

275

231

—

utilities

private—

Residential

2.84

(tons)—

(tons)

30

public

17

88

354

,

307

Railroad

All

1

87

;

^

1

—

9.500c

—Feb. 23

PAPERBOARD

EXCHANGE

50

32

9.250c

—

OIL, PAINT AND DRUG REPORTER

LOT

122

17

Other

;

=

147

45

Telephone and telegraph-

Group

AVERAGE

58

143

39

13.300c

COMMODITY INDEX

of

103

43

13.500c

Group———

orders

79

89

:

-

16

29.150c

Feb. 23

Group

Unfilled

108

75

buildings

39

29.700C

Feb. 23
Feb. 23

Percentage

182

63

recreational-..:

and

121.500c

-

Production

201

building

13.300c

A

Orders received

idential

nonre.

13.500c

—

Aa

NATIONAL

loft

garages

85.000(J

Baa

MOODY'S

and
and

12.800c

corporate-

Industrials

431

164

office

13.000c

-

Utilities

505
176

restaurants

Social

Feb- 23
F<*-23
—Feb. 23

U. S. Government Bonds

Railroad

18

487

Religious

BOND YIELD DAILY AVERAGES:

Average

24

Educational

17
17
17
17
17
17

Feb. 23
Feb. 23
—Feb. 23

Group

MOODY'S

735

78

(nonfarm)

85.000c

Feb.
Feb.
Feb.
——Feb.

Utilities

Industrials

4.634c

850

_.

Warehouses,

Public

:

Baa

Railroad

4.634c

816

735

1

Nonhousekeeping

Feb. 23

"—III———

1949

208

1,627

952

.

alterations

Nonresidential building
Industrial

8,196,000

DAILY AVERAGES:

—

..

and

13.000c

at

Aa

Public

,277

$2,361

1,908

825

(in millions):

;

12.800c

—

——

Louis)

—

Aaa

215

$2,661

1,713

67

January

——Feb. 23

_

corporate

Aaa

Public

9,014,000

$2,425

23

of

construction

Commercial

—Feb.
Feb.
Feb.
Feb.
Feb.
—Feb.

Government Bonds

Average

A

8,684,000

34,380,000
$487,487,000

construction

new

Residential building (nonfarm)
New dwelling units—

92

85

42,509,000

$574,079,000

Hospital and institutional

at

BOND PRICES

MOODY'S

at

at

Louis)

(East

S.

Total

Private

QUOTATIONS):

refinery

(St.

45,537,000

Misce laneous

1

'.

ton)

&

shipped between

J

&

Feb. 16
—Feb. 16
_—Feb. 16

—.

and

7,543,000
57,512,000

42,558,000

$585,951,000

Stores,

lb.)

(E.

(New York)

Lead

8,551,000

______Feb. 18

—+

—

62,257,000
44,532,000

countries

Additions

Feb. 20

(per gross ton)

PRICES

Export

U.

28,256,000

1

Electrolytic copper—
Domestic refinery at

Zinc

,

COMPOSITE PRICES:

Finished

Lead

*36

91

Feb. 13

100

kwh.)

000

credits

Total

ELECTRIC INSTITUTE:

Electric

10,599,000

goods stored

on

foreign

1

INDEX—FEDERAL RESERVE

SALES

STORE

—

31:

exchange

LABOR—Month

(tons)

(tons)

BANK

81,403,000

BUREAU OF MINES):

S.

Pennsylvania anthracite

EDISON

$144,052,000

103,189,000

Feb. 13
——Feb. 13

t-—

(U.

DEPARTMENT

$173,545,000

132,020,000

municipal—

OUTPUT

Bituminous

$196,885,000

96,392,000

Feb. 18
Feb. 18

Federal
COAL

$149,692,000

—

—!

construction

OUT¬

RESERVE

Exports

603,350

-Feb. 18
—Feb. 18

—

—

ACCEPTANCES

023,706

Based

construction

S.

Private

DOLLAR

OF NEW YORK—As of Jan.

NEWS-RECORD:
Total

(barrels)

STANDING—FEDERAL

ENGINEERING

—

,

stock

all

E ANKERS'

RAILROADS:

CONSTRUCTION

ENGINEERING

*

Increase

freight loaded (number of cars).:
Feb. 13
ireight received from connections (no', of cars)—Feb. 13

Revenue

CIVIL

gasoline

oil

fuel

ASSOCIATION

(bbis.>_:

unfinished

and

33

introduction of Monthly Investment Plan.

face amount of obligations,
under above authority.

ttDecrease all stocks.

—

issuable

"36

The Commercial and Financial Chronicle

(912)

■

.

Continued from page

>

-»

9

retirement, governmental and in¬
dustrial, have come into being and

t

being improved from year to

are

Taxation and investment

But most individuals

year.

tirement

integrity to economic require¬
ments outside its frame of refer-

this

economic measure;
raising exemptions would provide

once.

of

of

taxes

are

the

imposed for these rea-

to maintain high

be

policy.

time

of taxation is to
budget.
But what

the

-the
our

day

past three years the
Federal Government has been re¬

But the

be

re¬

some¬

1960.

their

is

One of two things

the

cither

budget

lake is

as

by an administration
committed to using the powers of
the Federal Government for the

as

to

which

best

later

he

immediate

1954

is

taxes

than

rates

lower

recommended

by

have

the

Ad¬

ministration.

opinion, there will be no
increases; the extra rates of

excises

scheduled

to

run

off

on

April 1 will be permitted to run

corporate profits
47% on April 1 as

off; the tax
will drop to

on

provided by law. The
be changed only by
legislation; it cannot
upset by a Presidential veto.

presently
47% rate

can

affirmative
be

the
It

.Businessmen do not

seem

to real¬

ize that this change in the tax on

bus'ness

means

a

10% increase in

profits after taxes.

maining
gasoline

tobacco, alcohol and
after April 1, it would

on

fce desirable to
all

taxes

completely

remove

excise taxes.

tion

re¬

These consump¬

inequitable, they
are
bad for
business, they are
bad for employment. Altogether,
are

the net loss of

revenue

inating the excises

1 estimate at less than $3V2 billion.

Furthermore, unless there is

a

-clear reversal upward in the trend

business

and

means

emergencies.

ability to do things

than

do.

to

Liquidity

economic

is

strength,

is

from

and

family, but
they should

family

to

whatever
never

they are,
be comprised by

alternative investment activities.

Insurance,

in

covering the in¬
escapable risks of living, reduces
the need for liquidity. Insurance
is, therefore, a cost of alternative
investment, as well as an aid to
mind

of

science.1

and

Insurance

a

is

clear

not

an

Teachers

the

legislation

uity

tematically in
these I
it.

was

And

I

other

any

once

Of

way.

and I know

one,

grateful for insur¬

am

I

predict

The

more

concern

flects

provisions are be¬
and more important.
with

retirement

big changes in

our

re¬

of

way

ber

annuity

of

the

be raised.

the increase

The amount of

should be

judged in
terms of the then existing busi¬
ness
conditions, unemployment
and

business outlook.

vidual income taxes

With

on

a

indi¬

current

basis, raising the exemptions is
-by tar the most powerful single

c-anti-depression instrument in the




as some seem to imply.
We
longer; we are farther from
the land; our skills are more spe¬

cialized
we

no

head

provide

style

nitely.

longer

of

matter

if

even

rule

absolutely
that, as

household

a

of

productive;

more

custom

for

proper

us

' ' '

Institutional'

as
a

duty, will
living in the
us—and indefi¬
and

a

to

1

'

savings and

it

competition

-

arrangements

that

different forms of

investment, ^nd be¬
that

them.

sponsor

is

unnecessary and wasteful,
sometimes
it is
deplorable and

unprofessional.
I

like

which

think

to

of

the

rendered

are

and of which the

gent consumer

distributed,

ordinary intelli¬
have

can

a

able opinion of his own.
reason

special

a

that

commerce

manufactured and

reason¬

For that

to

services

the

com¬

attaches

public responsi¬
the
financial

to

as in a similar way
it attaches to medicine and to law.

To

the

extent

standards

that

professional

adhered

are

to

by the

financial community, the country
will
be
the
better served, and
the financial community will be

respected and will prosper.

Continued from page 16

more.

fixed

as a

units

value of which

What We Face in Korea

num¬

month,

per

is determined

supplying

CREF has done
than

provide

against inflation; it also gives to
the college professor, as does any
diversified

equities,

certain,

a

terminate,

To take

in

if inde¬
to the

even

untaxed

undistributed
tions.

fund

investment

access

profits of corpora¬
an example from a

mutual fund with which I

as¬

am

sociated, the Growth Stocks Series
of National Securities Series, the
the

of

had

value of $8.25 per

paid in 1953

issues

60

1953

a

this

in

year-end book

share; dividends
$0.50 per share,

were

but earnings per share were $1.25

$0.75

or

share

a

dends.

than divi¬

more

other

In

words, 60% of
earnings were ploughed back by
these companies.
Other diversi¬
fied

investment

companies have
experience with respect

similar
to

their

of

course,

equity investments, and,
will

so

CREF

the

to

benefit of the college

great

fessor annuitant.

pro¬

So much for liq¬

uidity, insurance and retirement.

comes

best

his

feel

the problem

the

definitely
is

vestment

in

between
more

the

of

fund.

securities

For most

diversified

a

special

nancial

of

advice,

investment

suitable.

or

the

is

fi¬

some

in¬

diversified

clearly

must

we

human

more

not

interest

over¬

values

company for which we work,
which is located in our own

a

or

town,

whose products

or

which

we

tions

of

read

can

the newspapers.

we

use,

about

in

As in most ques¬

investment,

there

is

a

good deal to be said for all forms,
it is in the adaptation to the

and

needs
and

the individual

of

judgment

are

that skill

required.

let

one

and

the

The

leading

the

to

into

This

sound predatory, if not downright
sinister; but it represents an area
of savings and
investment that

rent,

wide

a

For

of financial

range

example,

shall I buy

shall

I

home on a
mortgage? What should I do about
or

instalment

buying?

a

Should I

while I save, or should I
fore
in

I

Should
my

enjoy?

the face
I

of

save

use

be¬

What should I do
a

borrow

big emergency?
or

should I

use

savings of should I sell? What

for about borrowing to buy securities?

who

had

contributed,

I

will not go into details with
respect to time and place for the

conference

except to say that in.
judgment they do not consti¬
really insuperable prob¬

my

tute any

on

of

the

lems in

our

negotiations with the

other side.

both sides. One side is made up
members

16

Nations

of the

contributing

Peace Conference Problems

United

troops

and

the Republic of Korea. The other

There

six

were

principal prob¬

lems:

side consists of the Chinese Com¬

munists

the

and

North

Korean

Communists.

Paragraph 60 recommended "to
the governments of the countries
concerned on both sides" that "a

of

political

conference

level

of

both

sides"

October

28th

by

higher

a

held

be

by

representatives

respectively in order
"to settle through negotiation the

appointed

questions of the withdrawal of all

Korea, the
peaceful settlement of the Korean
questions, etc."
/
The Armistice Agreement itself
forces

foreign

from

designed to bring about "a
cessation of hostilities

was

complete

is

of armed force

of air acts
until

Korea

Armistice

The

until

effect

in

in

peaceful settlement

a

achieved."

mains

re¬

expressly

the

held

is

political

con¬

held

not

or

affect the continuation

does

of the

Armistice.
Most of you

know Stanton Grif-

fis and the fact that he had

ambassadorial

Some

of

dis¬

not know that

may

you

a

career.

his father, William Elliott
was

a

the

Griffis,
distinguished authority on

Far

East

and

author

the

of

"Corea, The Hermit Nation," and
that
I

boy in Ithaca, New York,

as a

him

with

worked

to

on

verifying

of his works on

some

the Far East.

Little
the

I then think that

did

nomination

of

an

party,

on

banker, Walter Robertson, Assist¬
ant Secretary of State for the Far

East, I would

some

day find

my¬

self in the mountains of Panmun-

jom in

Korea attempting to
negotiate with the Chinese Com¬
the

and

Communists

North

Korean

time,

on

called

ence

As

a

a

place and
political confer¬

for

by Paragraph 60

should

attend

ration in December, 1943, the Pots¬
dam Declaration of

the

U.S.S.R.

a

the

"neu¬

participant and
or

as

third

a

neutrals

at

all, and, if so,
"who" and the extent of their
par¬

ticipation,
of the

(c) the voting rights
sides, i.e., if each side

two

to

was

each

vote

as

member

to

be

all

questions

a

unit,

of

voted

side

(d)

was

bound

which

to

"Aye,"

whether

that

affirmatively

that

the

on.

side

items

on.

the agenda and the order of these
items on the agenda, the schedul¬

ing of debate, etc.,
up

it

(e) the make
of the conference's secretariat,,
being our position it should be

supplied
eral

by the Secretary Gen¬

of

the

the

United

agenda

supposed
the

at

Nations, and.
the political

at

itself.

We

discuss

to

Would

our

not

were

the

preliminary talks

other side insisted

agenda
but the.

raising it.

on

side under any

circumstances,

as
demanded by
side, permit the U.S.S.R.

the other

to be present at the Political Con¬

ference
side

as

"neutral"? The other

a

insisted

Armistice

that

in

signing

Agreement

tral"

contained

setting

Supervisory
provides

in

the

up

a

"neu¬

Paragraph

Neutral

the

ha d

we

agreed to the definition of

37

Nations

Commission,

whiclr-

follws:

as

term

'neutral

nations'

as

herein used is defined as those na¬
tions whose combatant forces have
not

participated in the hostilities

in

Korea."
We, of course, in¬
sisted that this definition
only re¬
ferred to the
setting up of that

Commission and did not bind
as

us-

to the status of the
U.S.S.R.

Second: The other side also in¬
sisted that there should be
present
as neutrals such
nations as Bur¬
ma,

result of the Cairo Decla¬

which

(b) whether

"The

investment

full

a

"other side"

First:

tinguished

capacity in

as

conference

time

The

the
or

the

on

(f)

superseded.
ference

(a)

U.S.S.R. should attend—as
tral"

of the Armistice Agreement.

with other people's money.
statement in this form may

can

in

settle-

time, place and composition of the
political conference, I had the

Nations

he

more

to

troops and the Republic of Korea-

composition of

the

talks

attempt

fighting

Agreement was
military commanders

by

to

the

on

Armistice

signed

preliminary

honor to represent all of the mem¬
bers of our side—i.e., the United

incorporated

60,

these

Panmunjom

Korea

the Armistice Agreement.

munists

i

those

that

stopped.

events

owning the stock footnotes

from

come

the

sound

or

the

fund

But

or

are

in

fighting

Paragraph

one

investment

with

know

Moscow

At

Korean
you

Armistice signing on July 27, 1953;
nor
on
the
drafting history of

not

individuals with¬

interests

background

vestment

of

and for

specific companies,

stock

that

cases

stocks, the choice

common

is

look

Here I

individuals, in land.

As for

out

can

the indicated in¬
equities, common

stocks-^-or in certain

certain

of do¬

individual

savings.

surplus

from
have

the

and

and

Investments

the

all

we

Communist
would

of

familiar

But

gesture

North

all

Nor shall I dwell

something more
partial hedge

a

For

thoroughly
facts.

the

of

armies.

by the behavior of the Fund.

decisions.

should

remarks, I wish

my

the

to

Fund

but

not in dollars

covers

tax

provide articles of
are

its

live

income

strength of char¬

our

They provide
highly technical

on

State,

is called
intials, was set up as a
partial
hedge against
inflation.
And not only is the fund invested
exclusively in common stocks, but
the annuity when payable is stated
from

the

as

acter

individual

life, not in

closing

refer

exists between

us
recognize that
sophisticated there
is the problem of doing the best

Retirement

coming

An¬

doubtless

have

will hear

you

CREF,

for

Retirement

and

York

New

You

Finally,

savings.

ance

In

authentic

an

on

basis.

knowledge and skill; they do not

The Professional Attitude

to

being

based

something of this Fund, and

in

.

in

Fund.

heard

or

cient way to save except for those
who find it difficult to save sys¬

people.

service

called the College Retirement Eq¬

employment be¬
fore May or June, the exemption
the

Insurance

nuity Assocation, a child of the
Carnegie Foundation, in setting
up a mutual fund, under special

con¬

effi¬

for

means

by the financial institu¬

as

professional

services, just

a

ity will differ from individual to
individual

most

that

tions

Sometimes this competition is edu¬
cational and valuable, sometimes

or

more

it

foundation stone of personal free¬
dom. The requirements for liquid¬

from elim¬

as stated above

meet

without asking anybody's permis¬
sion or telling anyone what you

peace

Except for the excise taxes

to

the

invest—and

save

systematic savings in equity situ¬
Recognition of this prin¬
ciple has been given recently by

require¬

and

ations.

ing

money

It

demand.

on

ability

means

and

who

munity

bility

people's

cash

means

swered for most people

an¬

tween the various institutions and

with

Liquidity

These

organizations

Next

intend

In my

tax

other

arrangements, and

obligations

/

available

for

prospect

with

can

Liquidity and Insurance
'

The

see

individual is

an

From whom?

questions that need to be

are

ments, I favor placing the bulk of

sonal

money.

ployment will force it to stop.
The Prospect for Taxes in

and

As I

the best he can with his
surplus savings, and (5) For the
more
sophisticated, doing the

Unem¬

stop.

outlook

not.

are

re¬

Doing

requirements was about
This year it is about

will have

the business

are

problems, they fall roughly
under five headings: (1) Liquidity,
(2) Insurance, (3) Retirement, (4)

this overstatement of tax require¬
ments

to

of

of

number

a

his

$12 billion.

or

has

lated

quirement for taxes is much too
Tugh. Last year the overstatement

sooner

con¬

business

of which

some

some

My own preference is for budget
reform, but that is another story.
In either case the apparent re¬

And

individual

an

problems,

avoidance of mass unemployment.

billion.

the

possible devel¬
opments in Federal fiscal policy
must recognize that the investor

evaded

tax

with

outlook and with

tough one, but it cannot

a

himself

of

with due consideration to his per¬

Fund

The financial advisor who
cerns

economy.
to which road to

base

in institutional

shares

Savings and Investment

American

"The decision

between weakness and
For those who wish to

judge the future by the past, let
them study the past.

or

productive

been

today people are
buy if they so please. This
difference between
night

day,
strength.

must happen,
must be re¬

the public must be
taught to accept a large Federal
deficit as the normal way of life,
at least in the ever-increasingly
formed,

be

wishes;

the

and

corner.

forced to sell against

were

able to

one

1929-1933.

big difference in the mar¬
this: in the early 'thirties,

is

people

might have thought that
inflation
was
just
around
the
time

-of

and

now

compared with

as

kets

porting an annual deficit running
into billions of dollars.
By this

•

scale

the

of

the

For

S8

on

operate
that
will

to

between

taxation?

.

But these changes cannot

reinvestment, I can see no dan¬
what "balance"?
we continue with ger of a deep or of a protracted
obsolete concepts that control depression. Many fundamental dif¬
search for a sound policy of ferences exist in our economy to¬

and
long will

"budget"
How

c£

corporate

Except for a marked and con¬
tinuing increase in individual sav¬
ings in excess of all possibilities

that the purpose
balance

of

quired—if not in 1954 then

and cannot

lainks

taxation

expected

massive

present situation is unten¬
last. The public
and continues to be taught

The

able

a

double

profits.

levels of

mak¬

about

start toward the elimination

ing

economic activity and employment
is Federal tax

Among these is the impor¬
recommendation

of

perhaps decisive factor in the pro¬

useful

also

are

equity and incen¬

of

measures

tant

same

gram

have

exemptions

recommended and that will

tive.

taxes can be un-imposed for
reasons.
The major and

jbons,

as

in recent years to

recommended

be
as

If

order.

economic

the

ment

been

in the advance¬

to aid

dollar and

justice

of

correspond to price level increases.
Other tax revisions that have

reform, in order to
protect the stability of the

4ielp

the

been raised

not

■entirely different. Taxes should
!>e imposed, except when used for
^purposes

since

well

is

situation

the

taxation,

With

element

certain

a

Taxation

strong

a

How much?

by systematic savings.
'
Depending on how firm the re¬

Not only is

government's hands.

own

want

something more, and this some¬
thing more is generally provided

Business Cutlooh

In the

.Thursday, February 25, 1954

..

India, Indonesia and Pakistan..
is, nations who actually-

That
had

not

participated in the hos¬

tilities.

i

July, 1945, and

Declaration

of

War

against Japan, August 8, 1945, the
"Korean question" referred to in

Throughout the history of the
Armistice
the

negotiations,

"other side"

ing that

a

had

nation

however

been

insist¬

which

had not
the Armistice
agreement may be defined as the actually contributed troops to theunification of a free, independent hostilities at Korea could not beand democratic Korea.
The represented at the political con¬
"withdrawal of all foreign forces" ference "of a higher level of both

Paragraph

60

referred

in

defined
tions

to

to

of

Paragraph 60

was

in the Armistice negotia¬
mean

the

withdrawal

"non-Korean forces."

•

of

sides."

We

were

other side

U.S.S.R.

confident

was

be at

that

the

demanding that the
the Political

Con-

Volume 179

ference at

Number 5302

.

"neutral" along with

a

the other nations named, in order

that later

for

on

propaganda pur¬

to

Political

the

at

Conference,

charge that the U.S.S.R.

our

inspired the aggression against the
Republic of Korea would be
proven false.
As to neutrals other than

Third:

Russia,

should

we

political

the

that

the

ever

conference

of

question

com¬

bers

formula for certain countries who
did

not

participate in the hostil¬
as "non voting ob¬

ities to attend
servers"

with

the

right
conference

to

of

the

that

the

negotiations

difficult

tedious,

very

time

and

consuming.
I

or

tions

No

shall continue to retain

courage¬

more

those prisoners of war,

leadership
Syngman Rhee,

under

(c)

in

Korea

the

and

of

hard,
which

of

Korean
out

rather

winter—your
them

to

there

the

was

and

wish
you

that I believe
that
this
problem of arranging
with the other side for the time,

initiate proposals or to vote.
We
think the other side's proposal as

place and composition and voting

that it must have been

to

ence,

the

at

the settlement of the items

agenda

without

but

neutrals

from
of

the

the

on

right

the

to

only to divide us

was

Commonwealth

British

Nations,

on

of

which

is

India

a

member.
Fourth: As to voting rights, al¬
though the other side was insist¬
ing that any voting participant

had the
cuss

right to continue to dis¬

item

on

on

any

both

everyone

the agenda until
sides was pre¬

pared to agree and
about the

us

between

taunting

was

merely

side's

voting

as

a par¬

that problem.

As

As to

that that

secretariat, we feel
capable of solution

was

through

the

Secretary

offices

good

of

the

General of the United

Nations.

how

to

sion

the

of

eral

U.S.S.R.

as

not

"neutral"

a

the

so

bound

U.S.S.R.

some

would

if

will

you

map

and

ical

propinquity

note

Manchuria
on

<on

the

be

con¬

Why?

Well,

ria

of

we,

by the results of the

ference.

the

look

Korea's

to

the

on

the

at

geograph¬
China

and

west, Manchu¬

North, and the U.S.S.R.

northeast, which surround

it like gigantic

will

accept the

wanted to work out

course,
way

could

we

look

pincers, and if

about

200

you

miles to

the

find

Pyongyang, you will
the Liaotung Peninsula

on

the

great

naval

industrial

and

cities of Dairen and Port Arthur,
which is the eastern terminus of
the Chinese Eastern Railroad. The

industrial

great

city

of

Mukden

is about 100 miles from the North
Korean border.
is the

Then to the north

steel

city of Anshan.
And
the important industrial and rail¬
road

250

of

center

miles

miles

the

to

the

to

Harbin

lies

north.

northeast

60

the

is¬

of

land of Chongjin you will find the

large Russian
naval
center
of
Vladivostok, which is also the
eastern

terminus

Siberian
Thus

the

The

Trans-

other

the

non-Korean

Manchuria

side

forces

north

Yalu

and

to

that it

problem

withdraw

into

west

or

China

then

insist

Korean

forces should be withdrawn

the

II

War

that

of

should

be

as

Korea
the

at

the

U.S.S.R.

conference

or

and

not
as

as

bound to
with

who

carry

would

then

be

out her obligations

respect to the unification of

Korea
made

as
a
"neutral" — but
full votipg participant

a

one

which
and

she

which

had

she

previously
has

so

far

Negotiations
they
as

a

use

are

with

always

the

the

for

forum

platform for propaganda.

is somewhat risky

It

to predict the




R.

was

per¬

that

for

Except

between the Communist and

Communist

zones were

non-

prohibited.

The biggest percentage of water

installations is in the north¬
ern
part of Korea.
The bulk of
the chemical industries, electro¬
chemical
industries,
fertilizer

power

mines
and
heavy
timber are
located
likewise north of the 38th parallel.
The two parts of Korea hence are
reciprocal and need each other.
cement plants, and

plants,

It

is

of

of the 38th
in

simplification but

over

an

bulk

the

population south

the

parallel

employed

are

agriculture and fisheries, and a

relatively small amount in cotton
textiles, chemicals, pottery, brass,
machinery and glass.
C.

Wood,

Tyler
know,

our

economic

we are

of

leadership

able

the

you

tion

whom many of
endeavoring by

aid

South

of

L'isenhower

to

bring about

bring

President

Korea.

said

has

that

if

we

satisfactory
of Korea, we are, of
about

a

prepared to extend our aid

the North.
Communist

reports

very

are

misleading and conveniently omit
statistics.
But from
all present

it

reports

would

seem

that

the

Chinese Communists with the aid,
at least

U. S. S.

promised aid, from the

R., East Germany, Czecho¬

slovakia,
Poland,

Rumania,

North

Hungary

the

Korea

and#

their best
economic life

doing

are

incorporate

nations I
der

the

by

its

shall

dissolution.
of

completion, the
Repatriation

Nations

immediately

its functions and declare its

cease

Nations

Neutral

the

dissolution

the

After

tion

unreward¬

Repatria¬

whenever

Commission,

wherever

mentioned

those

of

any

civilians

and

abovehave

who

been relieved from the

prisoner of

status desire to return to their

war

fatherlands, the authorities of the
localities where they are shall

in

returning to their fatherlands.
Inhuman Communist Proposals

will, not attempt to review for

all of the drafting history of

Paragraph

there has

days

occasion to
length

I had

11.

review it in Korea at
December

on

few

last

munists

when

4

Com¬

the

the

advanced

tions

less

into

that

of

to
of

Man¬

South

the unification of North
Korea into a free, in¬

dependent, united and democratic
Korea.

The
tried

much

people

better fate.

harassed

and

sorely

deserve a
Their soldiers fought
of

Korea

prisoners

should

inhumane

as

In this

war,

many

Chinese without any

shanghaied

or

Communist

then

was

sympathy for
was

pressganged in the
Korean

North

Volunteers

the
and

by

captured

was

army

Command

referred back to the

United

the

Assembly,

Nations itself

the

General

negotiations with
as Chairman of

long

Thimayya

the NNRC and the other members

of

that

Commission,

military commanders

our

present

in the

Far

East, General Hull, General Tay¬
lor, Lieutenant General Harrison,

Major Generals Bryan and Lacey

Hamblen,
informal discus¬
In the armistice negotiations we
sion, all uniformly insisted that
fought for many months for the the explanations terminate at the
noble
and
humane
proposition end of 90
days
and
that
all
that
a
man
who was captured prisoners
revert
to
a
civilian
could not
be forced against his status 120 days after the Neutral
will to go back to the place of his Nations
Repatriation Commission
induction into the armed forces took custody on September 22 and
and thus be sold into Communist and that the
prisoners must be

held

slavery.
The

prisoners

induction

graph 11
ence

for

on

the

con¬

to

into

their

the

place

army.

of
of

Para¬

of the Terms of Refer¬
the

Neutral

A

pertinent provisions provide:

on

time.

voted

so

who

tions

is

as

I

as

has

has

now

pro¬

delighted that Dag Ham-

dependence. Their poverty is dire"
and

they

terribly difficult
is of the ut->

have

internal problems. It
most

nothing"

that

importance

happens to affect the strong, basie

V

between ther
Indian and American people and.

friendship

existing

that India does not go
think

I

Communist.

could be interested

you

in Chester Bowles' "Ambassador's

Report" and particularly his dis¬
cussion
of
Nehru's
harsh
atti¬
of

inside,

Communism

toward

his horror toward theruthlessnesp and inhumanity of
India,

Communism and his
whether

agree

you

his

—that

conviction—-

with it

not.

or

welfare

country's

re¬

avoid involvement

quires that it

the cold war.

in

We

did

not

Com?

the

hostilities

renew

release of prisoners. We

the

over

gratified

are

munists

also

did not think they would. We

that

believed

they

did

not

ac¬

of therr
prisoners but only wanted to use
the

want

tually

them

for

return

propaganda purposes.
:

*

*

.

American

The

people

ex¬

are

ceptionally well represented
in
both the military leaders and the*

representatives

diplomatic
in

have

we

Korea today.

and

Japan

in

together

work

united

a

effective team. From General

and

Hull and Lieutenant General Har¬

Ambassador Allison

and

rison

in

Is Taylor,.
Bryan, Anderson, Lacey, Daly and
and

Hamblen
and

and

his

most in

the

officers

of

dozens

staff

^

ut¬

the

received

I

cooperation.
morale

The

n e r a

Ambassador Briggs

and

men

high

G e

and

Tokyo

of

the

nature

troops

is*

understand

fully

they

and

difficult

of

their

as¬

signment.
Both the State and Defense De¬

partments were most helpful and
cooperative from top to bottom,
and I was much impressed by tho

qualified,
hard-working1
of people with whom I

highly

worked.
The

whole

unfortunate aggres¬

thing..

sion in Korea was a tragic
But

was

our

soldiers been
up

...

intervention all a

mistake?

tragic

all

Have

our

wounded and given

their lives in vain?

It is difficult, but

view that the freeing of

our

Indian

people are but a few years away
having achieved their in¬

"free men." That

marskjold, the Secretary General
of the United Nations, has agreed
with

Prime-

and
The

from

it should be.

am

India

on

Nehru.

Na¬

the

Command

claimed them

NNRC

the United

of

of

critical

be

may

Minister

group

but

no

*

judgment

own

majority

not

Nations

Repatriation Commission is unique
in the annals of military history.
Its.

my

*

India, that you do not pass hasty

Brigadier General

in

released

Communists

trary insisted upon the return
the

and

and

prisoner.

and

passing, I recommend to all.

you

They

belligerent.

a

In

whatsoever

Nations

United

because

Korean or

a

the Chinese Peoples

and

own

the cessation of hos¬

Communism

or

could not be

United Nations General

matter of right.

a

prisoners

non-repatriated

war,

in

their

to

the

hap¬

those

captured

returned

be

homes after
tilities

that

demand

to

ences

confer¬

international

and

trouble

no

some

Korea what is, at

occurred in

of

tude

I
you

with

prisoners

the

Don't Be Critical of India
In

be

responsible for assisting them

15

India

to

*

Cross

Red

This operation
completed within thirty

upon

are
released and the
beginning to be with¬

are

bloodshed.

India.

of

be

(e)

much.

so

CFI

Repatriation

the

and

Commission

representing .in or¬
attempt
to
accomplish

the

In

assisted

be

Nations

Neutral

armed forces—to whom peace

means

shall

was

to

own

as¬

(30) days,

something for the Korean people,
the peace of the world and our

in retrospect,

I do not think so.

of ninety
(90) days after the transfer of
custody of the prisoners of war to
the Neutral Nations Repatriation

prisoners was in accord with
the Korean Armistice Agreement.
negotiations we have re¬
ceived the most complete under¬

take?

of representa¬
captured
personnel as

standing from Generals Stenstrom

taken.

(a)

at the expiration

Commission,
tives

to

access

in
Paragraph
above, shall terminate,
provided

churia and Communist China and

and

Com¬

difficult

negotiating

of
World

The U. S. S. R. then

barrier.

to prevent

persistently declined to fulfill.
munists

remark¬

Because

has

to

prisoners

each

of

great source of re¬
Rhee and the

a

President

United Nations Command that the

the propositions that the explanation
did not terminate at the end of
there is no difference between the same time, one of the most tragic
(90)
days and
that all
Korean people north of the 38th and one of the most moving and ninety
parallel and south of the 38th humane episodes in history and a prisoners in custody of the NNRC
had to be held until the political
parallel
any
more
than
there resounding blow to Communism.
conference
had
discussed
their
would be if a conquering Com¬
The War Prisoner Issue
disposition
for thirty
days
no
munist army were to divide the
For
many
years
governments matter when it was held.
financial district north and south
and international lawyers, inter¬
Suffice it
to say that during
of Wall Street and we were then
negotia¬
to
refer
to
the
"North
Wall ested in peace and order and fair¬ the Armistice drafting
Streeters" and "South Wall Street- ness among men, have endeavored tions it was the Communists who
dinlomatic representa¬ had insisted that the question of
ers" and communication and travel through

or

there,

shall

and

the other

and

It must be

lief

among

Society

with President Rhee

his Cabinet

(120)

Nations

Neutral

Commission

Commission

the

to work

the

within

twenty

assure you

an

the-

said

had

and

prisoners

individual,

nations

or

and

that parallel into a po¬

unification

bound by its results in some way.
But we felt that she should be

rather

I did not consider it

an

I

one,

and

accept the surrender of

parallel.

litical

to

neighbor

challenging

the

drawn

Neutral

frustrating experience.
contrary, when Secre¬
tary of State Dulles and Assistant

Japanese troops north of the

course,

contending

are

S.

S.

U.

across

why we were
an important

me

and the
unusual

tasks,

and

after

other

those who choose to go to neutral

try¬

unselfish

so

their

difficult.

considerations in

military

our

the Pacific.
It is also apparent

people

homogeneous.

could

that

and

or

the

across

are

to

problem itself is such

ing

the effective economic rehabilita¬

relatively short dis¬

a

tance

a

men

re¬

had

worthy manner."

Conference

application

of

exceptionally

Under
see

to

very

be
no

(d) thereafter, according to the

respect to

is

ably

Railroad.

you can easily
not1 be much of

would
for

of

a

to

hundred

Repatriation

what we can Secretary of State for the Far East
achieving the Robertson asked me, I considered
unification of Korea and the with¬ myself privileged to be able to
the American
people
drawal of the Chinese forces from represent
problem

with

do

about

Just

bearing.

a

tary

devoted

On

from

west

have

'T

converted

While

Gen¬

Nations

Unification Problems

38th

Results of Conference

United

Assembly

the

Why Russia Should Abide by 1

I do not

pretend to know. The Four-Power
Conference and the requested ses¬

mitted to

!

long it will take to

the conference,

arrange

Korea

Fifth:

said

right

ex¬

glad to see that General
praised the release of

was

Hull

sumed their custody,

ing, cheerless arid frustrating ex¬
in the case of most other perience to have attempted to deal
problems to which you bring in¬ with the Communists.
tensive' study,
intelligence,
pa¬
But, the need of the Korean
tience, reasonableness, resource¬ people is so stark and great, Pres¬
fulness
and
firmness
will ulti¬ ident
Syngman
Rhee
and
the
mately lend itself to a solution.
Korean leaders and our own mili¬

The

electing not to be bound by

ticular vote, we believed we were
well on the way to a solution of

have

people

I

of

who have not

Political

days

as

a

unit and any member on each side

Many

their

been

emplary.

the

procedures at the political confer¬

alleged inconsistency

each

mean

civilian status
war

Custodian;

have

India

of

Indian troops had performed their
task in an "admirable and note¬

one

bring an end to their terrific meed
of trial, tribulation and suffering.

participate

Forces

disposition has been agreed to by

that
could

way

de¬

the

and

Thimayya

shall

patriated and for whom

goes

you

some

prisoners of

exercised

severe

heart

Commission

status to

war

any

of General.

the whole, the conduct
Re¬

clare the relief from the prisoner

bright-faced children trooping to
school—most inadequately clad at
time

January 23 violated the armistice*
does not — on*

which it certainly

custody of

Nations

Neutral

patriation

grinding, .unremitting toil
is
the daily
lot of the Korean
people
and
the
happy,
today,

this

the

position that the release ot

anti-Communist prisoners on

the

Commission

Repatriation

itself

Their

struction

be

would

Command.

their

thirty (30) days, dur¬
ing which period the Neutral Na¬

mem¬

is in¬
spiring, gallant and cooperative.
When you see the terrible de¬

and

Communists

the

other

defended

ever

bravely

more

ously.

with

UN

has

President

tions

and the

own

people

President Rhee
did not see the necessity for hav¬
ing any neutrals, we feel confident emphasize, the resolution would
necessarily involve long negotia¬
we could work out a satisfactory
although

our

the

could be
resolved; and that we could work
out
appropriate arrangements
with respect to implementing of
the obligations of the U. S. S. R.
When I say I believe the ques¬
tions could be resolved, let me

tion within

bravely and gallantly by the side

position and voting procedures at
political conference

37

(913)

of

But I believe if

itself

accept the U.S.S.R. as a "neu¬

events -in

the future.

arrange

that

uncertain

of

outcome

poses, they could insist, if we were
tral"

Financial Chronicle

.The Commercial and

.

(b)
of the

for

8

question of disposition
prisoners of war who have

the

not exercised their

right to be re¬

patriated shall be submitted to the
Political Conference recommended
to

be

convened

in

Paragraph 60,

Draft Armistice Agreement,

which

shall endeavor to settle this ques¬

the

In

these

and

Daenniker,

Swedish
and
NNRC; and
Chair¬

Swiss members of the

from General Thimayya, as
man.

The

work of the NNRC has

been humane and carried
most efficient and

out in a

to

understand, by the Indian gov¬
in particular their re¬

ernment

port

on

No. I

sound

decision

we

could

Will the hostilities be

present
not

mis-have"

resumed?

Communists but tho

evidence is that they do
to resume hostilities in

wish

Korea.

Should

we

have bombed northi

of the Yalu? Again who knows
a

for ^

certainly what the results would,

have been had we carried

the war

—

the prisoner situation and

•

think it was the only

That lies with

able manner.

Despite the adoption of atti¬
tudes, which are at times difficult

the Armistice itself a

Was

Continued

on

page

38

i

38

The Commercial and Financial Chronicle

(914)

Continued

from

ing sides—not the neutral partici¬

37

page

pants—had

items
nists

the

and

Manchuria

China,

in

U.S.S.R.

full

took

recent

the

of this

advantage

negotiations

ing peace in Korea?
That's a tough one. But from a

the

site of the Berlin conference. They

their radio as a sign
of lack of strength each small con¬

ever

we

standpoint

long-range

that we can
out wjth them

hopeful
work

exploit

withdrawal

the

foreign

of

of

forces.

I

To many

of

the long, vitu¬

you

lingual
munists

must

seemed

have

rogant
us

report
today?"

President

day

Rhee asked me "How do you ever

expect to achieve the unification
of Korea and the withdrawal of
Communist forces

Chinese

the

solemnly

they

country in the North?"

my

They

questions

hard

were

to

answer.

Propaganda
The

Communists

for

Communists know that we

do not like to spend

endless time

are

ar¬

warn

us—the

should

optimistic,

The

constructive.

and

situation

the
of

abandonment
We

—will

that
not
not

radio and

press,

is

dif¬

so

are

so

do

aftermath

hostilities
of

a
an

Armistice?

the

think

not

be

and

We

so.

was

The

my

accused

us

when

the

other

of perfidy.

the

that

Now that

Four

will

easy

dealt

have

to

hostilities

He who is

dealing
due

learn, I am afraid,

The

give in to the Communists is
a failure; each day there will

not be

Mutual
the

the

side;

the
cumulative effect of small points
won
by us may ultimately be
large, and that in negotiating with

essential

collective

Communists

our

there

"The

no

are

and

Based

to.

insisted
precise.

on

on

day,

link

of

with

Pact

the

Korea

prompt
upon

an

that

we

the

system of
thus far de¬

played

it

gives

a

the

result,

prepared, to expand

charges

defend

to

of

the

an

"defeat,"

safety,

the

to

"disgrace,"

"failure"

and

"substitute victory" in connection
the Korean war.
"There is
substitute

for

victory,"

General MacArthur. But, as
ident Eisenhower said in his
sage

the

on

"Our

sons

distant
The

Do not for
the

For with

brains, courage, devo¬
resourcefulness we can
Communism in the Far East
elsewhere

tion

the

Korea."

because

did

we

which

may

major role in

accomplish everything,

downtrodden
of human

not

For

the

too
we

discouraged.
have

won't

stopped the time¬

am

Now

in

be

It

Registration

mon

ceeds—For

Office—44

cents

par

per

Pro¬
operations.

shar,e).

expenses
incident to
mining
Apricot Avenue, Shit Lake City, Utah.

derwriter—Arlin

President,

Davidson,

P.

O.

Box

Un¬
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Salt Lake City, Utah.

Aircasters,

Inc.
Jan. 21 (letter of notification) 120,000 shares of com¬
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Price—At par ($1 per share). Proceeds—To
construct or acquire1 broadcast stations.
Business—Sale
of programs and announcements to advertisers.
157 Broad St., Red

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Office—

Underwriter—J. Gilbert

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(3/16)
$17,000,000 of first mortgage bonds due
1, 1984. Proceeds—For property additions and
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Feb.

17

filed

March

To

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Probable
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bidders:

•

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Price—
70% of principal amount. Proceeds—For general operat¬
ing expenses and working capital. Underwriter—Tellier
& Co., New York.

Feb.

10

6%

it Arizona Amortibanc,
Feb.

15

common

Phoenix,

Ariz.

(letter of notification) 300,000 shares of class A
stock.

Armstrong Rubber Co.

Price—At par

($1

—For general corporate
purposes.

ington Street, Phoenix, Ariz.

It

But
takes.

I
*

ADDITIONS
ISSUE

REVISED

•

petitive

!

■

per

share).

Proceeds

Office—701 W. Wash¬

Underwriter—None.

—Now tentatively expected to be made early in March,

Trust

March 31,

1953, filed $4,000,000 of 5J/2% convertible sub¬

ordinated debentures due 1974 (as amended).
be

Price—To
supplied by amendment. Proceeds—For working cap¬
Underwriter—Reynolds & Co., New York. Offering

ital.

Basin

Natural

Gas

Corp., Santa Fe, N. M.
Dec. 23 (letter of notification) 748,000 shares of common
stock (par five cents). Price—40 cents per share.
Pro¬
ceeds—To acquire properties and leases. Office — Blatt
Bldg., Santa Fe, N. M. Underwriter—Hunter Securities
Corp., New York.
• Beaumont Factors Corp.
Feb. 16 (letter of notification) 243,400 shares of common
stock. Price—At par ($1 per share). Proceds—For work¬
ing capital. Business—A finance company. Office—325
Lafayette St., New York 12, N. Y. Underwriter—None.
it Bolsa Chica Oil Corp.
16 (letter of notification)

Feb.

stock

77,624 shares of capital
to be offered for subscription by stock¬
Price—$3.75 per share. Proceeds—For work¬

(par $1)

holders.

ing capital and general corporate
West Seventh

Street, Los Angeles, Calif.

None.

Office—727

purposes.

Underwriter—

1

(

Co., 464 California St., San Francisco, Calif.

Carling Brewing Co.r Inc., Cleveland, Ohio
Jan. 18 (letter of notification) 3,750.4 shares of
capital
stock (par $15) being offered to minority stockholders
of record
Feb.
1
on
a
share-for-share
basis; rights
to

expire

Feb.

on

ceeds—To

retire

26.

Price

current

★ Clearwater
Feb. 16

able

Burton

Manufacturing Co., Los Angeles, Calif.
(letter of notification) 85,000 shares of common
stock (par $1).
Price—$3 per share.
Proceeds—To re¬

Feb. 15

tire

a

5% secured note and for working capital.
Under¬

writer—Hill Richards & Co., Los
Angeles, Calif.
Feb.

15

bonds

due

Jan.

1,

1964, a*nd 140,000 shares of common
stock (par $1).
Price—Of bonds, at 100% of principal
amount; and of stock, $1.50 per share.
Proceeds—For
construction

and

writer—Dixon
•

California
5

operation

Bretscher

of

racing

Noonan

Inc.,

Interstate Telephone

plant.

Under¬

Springfield,

Co.

111.

Mines, Inc., Spokane, Wash.

other expenses incident to

Building,

Spokane

1,

mining. Office — 401 Empire
Wash. Underwriter—None.

★ Dairy Queen Products, Inc., Decatur, Ga.
12 (letter of notification) 500 shares of common
(par $10) and 500 shares of 5% cumulative pre¬

Feb.

ferred
share

stock

(par

$100)

to

Delhi Oil

Los Angeles,

Underwriter

—

William

R.

Calif.

&

Staats
,

one

,

Jan. 22 filed 1,031,758 shares of common stock (par $1)
being offered for subscription by stockholders of record
Feb, 15 on the basis of two new shares for each five
shares held

(with

(to expire on
—To

for

oversubscription privilege); rights
Price—$1Q per share. Proceeds

approximately $8,500,000 indebtedness matur¬

pay

within

used

an

March 10.

the

current

fiscal

year

and

the

remainder

general corporate purposes and working

it Detroit Edison Co.
gage

$40,000,000 of general and refunding mort¬
bonds, series N, due March 15, 1984. Proceeds—To
3%% series M bonds due May 1, 1988. Under¬

redeem

writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; The First Boston

Corp.; Coffin & Burr, Inc. and Spencer, Trask & Co.
★ Douglas Oil Co. of California
Feb.

filed 50,000 shares
preferred stock. PHce —At

Co.,

Inc., New York and San Francisco;
and the First Boston
Corp., New York.

23

working

capital.

Price—To

construction.

on

be

determined by com-

repay

bank

of

cumulative

par

loans

I\

(3/18)

($25

and

per

convertible

share).

Pro¬

for

expansion and
Underwriter—Shearson, Hammill &

Co., Los Angeles and New York.

California Oregon Power Co. (3/9)
Feb. 10 filed $10,000,000 first
mortgage bonds due March
1, 1984.
Proceeds—To repay bank loans and for new
Underwriter—To

capi¬

Underwriter—None.

ceeds—To

(par $20).
be supplied by amendment.
Proceeds—To
bank loans and for new construction. Underwrit¬

ers—Blyth &




of

Corp., Dallas, Tex.

Price—To

offices

units

—Temporary: 1112 Peachtree Street, N. E., Atlanta, Ga.

repay

Cleveland

in

class of stock. Price—$110 per unit.
Pro¬
ceeds—For working capital and new construction. Office

Feb. 24 filed

California Oregon Power Co. (3/2)
Feb. 10 filed 300,000 shares of common stock

all

offered

be

of each

tal.

Co.,

to

assess¬

stock, of which 50,000 shares are to be is¬
for services, etc., and 950,000 shares
are to be offered to public.
Price—At par (10 cents per
share).
Proceeds — For exploration, development and

ing

(3/9)

filed

Bernardino, Calif.

San Francisco

Pro¬

•

Office—9400

(letter of notification^ 1,000,000 shares of

Underwriter—None.

Downs, Inc., East St. Louis, III.
filed $1,400,000 of 10-year 6% first mortgage

proceeds to be received

Private IVires

-

in- payment

sued

Cahokia

4%% debentures, to be used primarily to
purchase from California Electric Power Co. all of the
capital stock of Interstate Telegraph Co. Office—San

Chicago

share.

per

stock

$1,500,000

Pittsburgh

$40

common

from private sa*ie of $4,200,000 first
mortgage bonds and

Boston,,

—

indebtedness*

Quincy Ave., Cleveland, Ohio-,.Underwriter—None.

300,000 shares of common stock (par $5).
Price—To be supplied by amendment.
Proceeds—From
sale of stock, together with net

Philadelphia

sailing.

PREVIOUS

ITEMS

will be

tough.

bidding.
Probable bidders: Halsey, Stuart &
Co., Inc.; White & Co.* Blyth & Co., Inc., The First Bos¬
ton
Corp. and Salomon Bros. >& Hutzler
(jointly);
Shields & Co., Merrill Lynch, Pierce, Fenner & Beane
and Kidder, Peabody & Co. (jointly).
Bids — To be
received up to 8 a.m. (PST) on March 9 at American

Feb.

New York.

sense

1954.

Price—At

stock.

•

restore
a

It

be

have what it

we

.

★ Absaraka Uranium, Inc., Salt Lake City, Utah
Feb. 16 (letter of notification) 6,000,000 shares of com¬

to

easy.

will

smooth

SINCE
•

help

dignity.

be

sure

and

peoples

It will not

should

we

and

expensive.

not be

believe

moment

one

apostles of gloom.

lick

Union:
on

problem is admittedly dif¬

ficult—But

begun

and

the

die

of

Univer¬

mes¬

of

mountains

horizons.

our

Cornell

have just

nutrition.

said
Pres¬

longer

state

no

of
we

to scratch the surface in greatly
enlarging the world's food supply
and in advancing the science of

and

with
no

Trustee

a

sity I know

attack

our

factor

of

"dishonor"

whol¬

a

inevitable.

ing the gospel of an enlightened
capitalism, and what it will do for
ordinary man.
We must be

Result

it INDICATES

Securities

not

As

clear

would-be

to

vital to
a

is

zealous in spread¬

as

ation, it is difficult to give
ly satisfactory answer

will react with

event

area

an

the

notice

eliminates

have

the vot¬

constitutes

in

measures

in

peace

a

Because

agressors

it

as

security

formal

and

they
past experi¬
being detailed

That is why we insisted

Commu¬

Relations

ratification

Treaty

veloped.

light-hearted, gay moments.
They try and try to have things
stated
as
principle so they can
want

Foreign

Defense

other

Communism

in adjustment of the Korean situ¬

"stabilizing
factor," put in its report the fol¬
lowing:

mate sometimes lead to important

for

Senate

mending

big story with headlines;
the exasperating periods of stale¬
points

Com¬

the

Committee in unanimously recom¬

a

trading

from

comes

munists, themselves.

conference at which you do

a

is

But the rise and further spread

look

political conference.
Cut"

Communists

the

for trouble.

We must be

"Clean

have

we

falsely optimistic in

with

of

No

and

ringing blow to Commu¬

a

the

There being no clean cut

her in¬

the prisoners

bloodshed

forward to the early convening of

are

that

nism in the battle for men's minds.

the

we

of

with

Japan

We have released

We

Though

restore

without

hopeful of the results of these

are

States

solution

poulation to a balanced
is difficult, but she is
making distinct progress.

these

while.

a

Associated

economy

Power, Confer¬

for

the

eventual

creased

But it may

over-shadow

Korea

situation
looks
brighter in Indo-China

with

the

To

Berlin, especially in view
of Foreign Minister Molotov's
opening sally about Communist
in

are

difficult colonial problem.

at

China,

the

military

-

plans
for

prisoners have been released,
it is hoped that the preliminary
be

and

Communism

the French have constructive

and

side

the

ence

aggression
of

The Republic of Korea is

somewhat

preliminary talks

off

that
the
only danger
respect to the resumption of

with

included

commentators

ence, we

naturally trustful,
hopeful,
reasonable

who

confident
of

that

are

Young,

preliminary talks.
going will not be

be constructive.

negotiations, to haggle over a
multitude of unimportant details,
we

the

Red

stayed.

Deputy at Panmunjom, is continu¬
ing at Panmunjom the attempt to
broken

of

forces

being rehabilitated.

Kennetly

talks

renewal

turn and twist them any way

on

the

evil

be.?'

exasperating and the matter is
just so complex and time-consum¬

a

the

from

would

ing,

we

rude,

unilateral,

Rhee

ficult and the Communists

to con¬

that

President

as

the Korean people suffer and

table

the enemy as to what our conduct

talks will be resumed.

Because

being unreasonable and

television

we

people

each

almost

and

can

American

the

to

progress

prepared

are

under¬

and

not united.

are

outbreak of the major wars of this
century—that of miscalculation by

renew

forebearance

Meantime,
says,

by bullying by them.

invective

and

to stop

All

very

"What

of

slanderers,

disked by the

was

much

us

point, they precede it by

to

I

by

they

a

torrent

that makes no sense.

day

concession

a

conference.

standing.

nothing.

When

mad¬

able
and
intelligent and
hard-working corrpesondents:

get

mat¬

cede

dening—an endless game of words

Each

So

them.

followed

is

strongly-worded tri¬
invective of the Com¬

perative

to

the

on

long term settlement in Ko¬
rea, will take a great deal of pa¬
tience, a great deal of time and

They interpret normal pleasant
concession as a sign we are afraid

settlement of the Korean question
and

order

important

more

ters. Time to them means

peaceful

a

in

make

we

with

on

those

than

A"

over

cession

are

we

ultimately

other

agenda could not be discussed at

the

on

bring about a last¬

Can

the

voting procedures, agenda, the
items on the agenda, the schedul¬
ing and order of debate, and that

What We Face in Korea
into

determine

to

.Thursday, February 25, 1954

..

★ Douglas Oil Co. of California
Feb.

23

filed
be

15,000
related

the American

shares of
to

the

(3/18)

common

then

Stock Exchange.

stock

current

(par

market

$1).
price

Proceeds—To Wood-

Volume 179

Number 5302

.

.

The Commercial and Financial Chronicle

.

(915)

I

G.

Edgar Brothers Co., Metuchen, N. J.
Feb. 8 (letter of1 notification) voting trust certificates

* El Paso Electric Co. (3/16)
Feb. 19 filed $5,000,000 of first mortgage, bonds due
March 1, 1984. Proceeds—To repay bank loans and for
construction program. Underwriter — To be determined
by competitive bidding. Probable bidders: Halsey, Stuart1
& Co. Inc.; Equitable Securities Corp.; Salomon Bros. &
Hutzler; Kidder, Peabody & Co., White, Weld & Co.
and Shields & Co. (jointly); Stone & Webster Securities

Price —
representing 1,900 shares of common stock.
$11.371/2 per share to underwriter. Proceeds—To Charles

To

row

Krieger,- President.

Underwriter

—

Shearson,

Hammill & Co., Los Angeles and New York.

if Eaton & Howard Balanced Fund, Boston, Mass.
— At

.Feb. 23 £iledv500,000 shares of capital stock. Price
market. Proceeds—For investment.
,

W. Nielsen, the selling stockholder. Underwriter—Courts
& Co., Atlanta, Ga.

El Paso Electric Co.

the basis of

on

one new

shares held.

Rights will expire

be

by amendment.

supplied

common

sale at

stock

New York City.

^ El Paso Electric Co.
Feb. 19 filed

Feb. 4 filed 76,399 shares of common stock (no par)
be offered for subscription by common stockholders
record Feb. 23

Corp.; Merrill Lynch, Pierce, Fenner & Beane. Bids-^
be received up to 11 a.m. (EST) on March 16 at 90

Broad Street,

on

to
of

share for each 10

Price—To

March 11.

Proceeds

—

sale of

From

stock, together with proceeds from subsequent

program.

competitive bidding of 15,000 shares of preferred
and $5,000,000 of first mortgage

(no par)

due 1984, to "be used to
construction.

Dealer

bonds

bank loans and for

repay

Manager—Stone

Webster

&

new

Se¬

curities Corp., New York.

^ Federal Electric Products Co. (3/10)
Feb. 17 filed 175,000 shares of common stock (par $1).
Price—To

be

supplied,

by

Proceeds—To

amendment.

reduce short-terni bank loans incurred to

ing capital.

provide work¬
Underwriters—H. M.

Office—Newark, N. J.

February 25

(Thursday)

(Bids

,

EST)

noon

(Van Alstyne, Noel & Co. and Nauman, McFawn & Co.)

^

$2,000,000

$7,500,000

i

'

February 26

(Friday)

Alaska Telephone Corp.____.
(Tellier

Natl Bank

&

-v

-

(Olf«4^^tf«)«t®ekholders—underwritten by The First

-

Boston. Corp.)

...Debentures

(The

(Ore.) ^^__Com«toir
B^ane artfl The First

(MerriirLynch, Pierce, Fenner &
-•^.Boston Corp.) $16;®00,000

y

$6,000,000

Bonston

First

March 17

$3,601,250

Corp).

March 1

"S.;

(Monday)
Bonds

Lighting.& Power Co.__._i.
(Bids

Mohawk

Airlines,

'Offered

by

Penn-Dixie

Pierce,

Common

Fenner

&

by

120,427

Beane)

2

&

11

18

March

Bonds
about

(Thursday)

Preferred

Hammill & Co.)

(Shearson,

Hammill

(Shearson,

$20,000,000

& Co.)

March 23

(Tuesday)

Utah Power

First

(The

Boston

and

Corp.

Dean
shares

600,000

Witter

&

11

(Bids

to

Dallas

&

Power

(Harriman

Ripley

&

Inc.

Co.

and

(Bids

be

to

Electric

Suburban

(Bids

Wood,

Gundy

$50,000,000

&

11

Light

Lighting

Island

(The

First

Boston

.Equip. Trust Ctfs.
EST) $1,240,000

noon

Indiana Gas

and

Co.

to

Electric

Gearhart

&
T.

Otis,
J.

Inc.;

Hunter Securities
&

Co.)

Corp.,

Reid

March 9

Co.)

'I

<

William

(Bids

&

Co.)

a.m.

>BST)

Georgia

Common

—Common
$8,000,000

30

(Tuesday)

Bonds

Diego Gas & Electric Co
(Bids

11

EST)

a.m.

$17,000,000

(Bids

Bonds

11

EST)

a.m.

April 12

Bonds
Common
Stone

&

(Monday)
Common

(Offering to stockholders—no

underwriting) 5,000 shares

(April 13

,

(Tuesday)

300,000

Southern

March

10

Federal Electric Products Co

.Common

Gas
to

be

&

Electric

invited)

L_

Texas Utilities Co
(Bids

to

Co

received)

be

shares

175,000

250,000

.Common

(The First

Boston

Corp.; Blyth & Co.,

Inc.;

and

Sheraton Corp. of America
(Offering

Webber,

to

.Debentures

stockholders—underwritten

by

Paine,

.Bonds

Co
(Bids

pean Witter & Co.) 605,000 shares

^

Ohio Power

11

a.m.

EST)

$20,000,000

Preferred

Ohio Power Co
(Bids

11

a.m.

(EST)

(Tuesday)

April 20

(Friday)

(Bids

Wisconsin Public Service Corp
(The

Common

First

Fenner
and

Boston Corp.; Merrill Lynch,
Pierce,
Eeane; Robert W. Baird & Co., Inc.;
William Blair & Co.) 316,867 shares

a.m.

EST)

$7,000,000

Power
(Bids

16

$12,000,000

May 14

Co
11

...

a.m.

EST)

El Paso Electric Co
(Bids

11




EST)

$17,000,000

$6,500,000

Common

amendment.

Proceeds—For

stock

equities of subsidiaries
and temporary advances to subsidiaries for reduction of
their
1954

bank

loans

construction

for

and

in

use

connection

with

the

program.

Corp., both of New York; and
San Francisco, Calif.

Mitchum, Tully & Co.,

Gibbonsyille Mining & Exploration Co.
10
(letter of notification) 10,000 shares of non¬
assessable preferred stock. Proceeds—For indebtedness,

Feb.

machinery and working capital.
Underwriter

Hutton Bldg., Spokane, Wash.

—Daniel

Sherman Secord, 4016 South Grand, Spokane,
Price—At par ($10) per share.

Price—At

working

capital

($1

par

and
sale

per

expenses

share).
incident

common

Proceeds—For
to business of

of laminated

fiberglass products.
Boulevard, > Santa Ana, Calif.
Underwriter—Marache, Dofflemyre & Co., Los Angeles,
Office—19101

Newport

Calif.

if Goebel Brewing Co. (3/16)
Feb. 24 filed 200,000 shares of 60-cent convertible
stock

(par $10)

pre¬

to be offered to common stock¬

preferred stock for each

on

seven

the

Ipasis of

shares of

one

share of

common

stock

held; rights to expire on March 30. Price—To be supplied
by amendment. Proceeds — For general corporate pur¬
poses.
Underwriters — Van Alstyne, Noel & Co., New
York, and Nauman, McFawn & Co., Detroit, Mich.
Growers Container
Feb.

15

Corp., Salinas, Calif.

filed

1,450,000 shares of common stock, to be
offered primarily to individuals and firms in the Salinas
Valley, Imperial Valley, Yuma, Phoenix, and other dis¬
tricts in and outside of San Francisco and Arizona, who
are
engaged in or allied to the growing and shipping
industry. Price—At par ($1 per share). Proceeds—Con¬
struction df plants, acquisition of equipment, and for
working capital.
Business—Primarily manufacture of
cartons and bags used for shipment of various vegeta¬
Underwriter—None.

Houston

Lighting & Power Co. (3/1)
$30,000,000 of first mortgage bonds due 1989.

ders:

Halsey,

Stuart

& Co. Inc.; Kuhn, Loeb & Co.;
Corp.; Lehman Brothers; Smith, Bar¬
ney & Co.; Kidder, Peabody & Co.; Equitable Securities
Corp. Bids—To bp received up to noon (EST) on March
1 at Room 2033, Two Rector St., New York 6, N. Y.
Union Securities

(State of)
$350,000,000 of development bonds to be
offered in two types, viz: 15-year 4% dollar coupon
bonds and 10-year dollar savings (capital appreciation)
bonds. Price—100% of principal amount. Proceeds—For
investment in The State ox Israel for agriculture, indus¬
if Israel
24

filed

try and power; transportation and communication, and
housing; and for general reserve. Underwriter
—American Financial & Development Corp. for Israel,

-A-Jupiter Steamship Co., Wilmington, Del.
(letter of notification) 20,000 shares of common
stock (no par) to be initially offered to stockholders.
Price—$10 per share. Proceeds—To pay balance due on
two ships and for working capital.
Office—100 West
10th Street, Wilmington, Del. Underwriter—None.
if Kab Products Co., San Francisco, Calif.
17 (letter of notification)
10,000 shares of pre¬
ferred stock.
Price—At par ($10 per share). Proceeds

Feb.

Bonds

Bonds & Preferred
a.m.

(Friday)

First NatT Bank of Toms River, N. J
(Offering I to stockholders) $150,000

(Tuesday)

by

additional

Feb. 16

Bonds

West Penn Power Co
(Bids to be invited)

*

March
Alabama

11

&

c

supplied

in

New York.

Preferred

Arkansas Power & Light Co

March 12

r

be

investments

low cost

$5,000,000

Jackson & Curtis and Hamlin & Lunt)
$3,300,000

Un¬

★ General Telephone Corp., N. Y. (3/9)
Feb. 17 filed 300,000 shares of common stock (par $20).

Feb.

shares

(Wednesday)

April 14
Common

.Fireman's Fund Insurance Co

*

Bonds

$8,000,000

Byllesby & Co., Inc. and Hayden, Stone & Co.)

(H. M

•

Indiana
(Bids

.(Wejdnesday)

Office—100 West 10th Street, Wilmington, Del.

tal.

Proceeds—For construction program. Underwriters—To
be determined by competitive bidding.
Probable bid¬

Webster

and Mitchum, Tully & Co.t
shares

Corp., Wilmington, Del.

(letter of notification) 140,000 shares of common
stock (par 10 cents). Price—$1.50 per share. Proceeds—
For inventory, capital expenditures and working capi¬

Feb. 4 filed

$11,000,000

Gulf Insurance Co

*zj.

Gamma
Feb. 2

bles.

(Tuesday)

Power Co

shares

$10,000,000

Webbei*, Jackson & Curtis;

Securities Corp.;

March
San

(Monday)
Co.

EST)

a.m.

April 6

Power Co

8

General Telephone Corp
(Paine,

300,000

11

487,248 shares

■'

(Tuesday)

R.. Staats

California Oregon

and

$2,000,000

California Interstate Telephone Co.__
i

Telegraph
Common

Light

(Bids

Common

&

&

Power

$2,525,000

Development Corp
(Fulton,

114,166 shares

(Friday)

March 29
Pacific

Debentures & Common

Feibleman

Hatboro, Pa.

(letter of notification) 14,200 shares of partici¬
pating preference stock (par $1). Price—To be filed
by amendment. Proceeds—For expansion and working

ferred

Common

Co

stockholders—no underwriting)

I

.

Rand

and New

5

holders of record March 16

....I

Co.
(Offering

(Friday)

Magnolia Park, Inc

•

(Thursday)

&

Mountain States Telephone &

C. Langley &
Inc.) $7,000,000

March 5

$300,000

$4,000,000

Co.______________Preferred

Blyth & Co.,

$10,000,000

(Smith, Barney & Co.)

Bonds

W.

Fischer & Porter Co.,
Feb.

manufacture and

Common

March 25
Southern

(Thursday)

Corp.,

u.

stock

tIt Glasspar Co., Santa Ana, Calif.
(letter of notification) 250,000 shares of

$7,000,000

EST)

a.m.

March 26

Long

(3/10)
common

& Co., both of San Francisco, Calif.,
York, N. Y.

stock.

—Preferred

Co

be invited)

11

(Bids

$1,845,000

EST)

a.m.

of

Witter

Wash.

shares

(Wednesday)

Texas & Pacific Ry

1

Co—

March 4

200,000

(Tellier & Co.)

Equip. Trust Ctfs.

invited)

shares

(par
Price—To be supplied by amendment. Proceeds
—To finance acquisition of National Surety Corp* and
for working capital.
Underwriters — The First Boston
Corp., New York, and Blyth & Co., Inc. and Dean

,

Nuclear Research Co

.Debentures

Inc.)

Co..

$7,000,000

...Debentures

(Bids

$3,000,000

St. Louis, Bxownsville &
Mexico Ry.

Preferred

Co

Gas

.....Equip. Trust Ctfs.
invited)

be

605,000

$2.50).

Common

EST)

a.m.

Co.)

Laclede

(Province of)

;Ontario

filed

16

installation of additional

(Tuesday)

Light Co

Mav#24

(Wednesday)

Missouri Pacific RR._^

Common

15,000 shares

Light Co

(Bids to

Marbh 3

Fireman's Fund Insurance Co.

Feb.

Feb. 17

Common

Southern California Edison Co^__—_
:

&

(Bids

shares

•

filed

Office—711

Power &

(Bids noon EST)

.Common

tBlyth & Co., Inc. and The First Boston Corp.)
300,000

$1,250,000

Douglas Oil Co. of California...

Louisiana

Corp., New York
250,000 shares of 7% cumulative sinking
fund preferred stock. Price—At par ($2 per share). Pro¬
ceeds—For working capital. Underwriter—E. J. Foun¬
tain & Co., Inc., New York.
29

Underwriters—Paine, Web¬
ber, Jackson & Curtis and Stone & Webster Securities

$12,000,000

Douglas Oil Co. of California

Merrill
shares

California Oregon Power Co
•

$5,000,000

Co

EST)

a.m.

Inc. )

Co.,

Electric

""

Bonds
EST)

a.m.

March

(PhiUjg&#fc&rdon

•

(Bids

Common

Corp...

10:30

-

.

$290,000

Southern Natural Gas Co
(Bids

j

'

Common
underwriting)

stockholders—underwritten

to

Lynch,

.

Pennsylvania

$30,000,000

Inc

company—no

Cement

(Oifering

EST)

noon

....

Colo.

Price—Tq

(Wednesday)

Light Metals-Refining Corp
Houston

reduce

derwriter—Sheehan & Co., Boston, Mass.

Preferred

Stromberg-Carlson Co.

Co.) .$270,000

Portland

of

—Common

National Union Fire Insurance Co
•

First

.Preferred

GoebefrBfewing Co
,

Bonds

-

Proceeds—To be available to subsidiaries and
outstanding bank loans. Office—820 Plymouth
Bldg., Minneapolis, Minn. Underwriters—M. H. Bishop
& Co., Minneapolis, Minn.; and B. L Barnes, Boulder,

share).

capital.
Underwriters — Hallowell, Sulzberger & Co.,
Boenning & Co. and Thayer, Baker & Co., all of Phila¬
delphia, Pa.
*
V

NEW ISSUE CALENDAR
Pittsburgh & West Virginia Ry._

Fidelity Acceptance Corp., Minneapolis, Minn,
Jan. 26 (letter of notification) 2,800 shares of 6% cumu^
lative preferred stock, class E. Price—At par ($25 per

Financial Credit

(no par).
Underwriter—To
be determined by competitive bidding.
Probable bid¬
ders: Kidder, Peabody & Co., White, Weld & Co. and
Shields & Co.
(jointly); Stone & Webster Securities
Corp.; Merrill Lynch, Pierce, Fenner & Beane. Bids—
To be received up to 11 a.m. (EST) on March 16 at 90
Broad Street, New York City.
construction

39

Byllesby & Co. (Inc.), Chicago, 111.,, and Hayden, Stone
& Co., New York.

Jan.

(3/16)

15,000 shares of preferred stock

Proceeds—For

<

May 19

(Wednesday)

Utah Power & Light Co
(Bids

noon

EST)

L-i
$15,000,000

Bonds

Continued

on

page

40

40

(9Li)
'•»

At*

"

The

- -->?

il and Financial Chronicle

Thursday, February 25, 1954

...

•'

'

^
•

"

/

*♦

+

,.

Contifyfjied from

.

*

•

.

.

39

page

—-To purchase stock of. Tab

Products, discharge notes of

Tab, and for working capital.

ing, $an Francisco 4, Calif.

Office—1069 Mills Build¬
Underwriter—None.

it Kearsarge Telephone Co., New London, N. H.
(letter of notification) 1,000 shares of 5% cu¬
mulative preferred stock. Price—At par ($50 per share).
Feb? 16

Proceeds—To

pay

for

portion of the cost of convert¬
Under-

a

to the dial telephone system.

ing the company

writer-^None.
Keystone Mining Corp. (Pa.)
10 (letter of notification) 291,300 shares of class A
.common stock.
IPrice—At par ($1 per share). Proceeds
—To purchase land and erect buildings, to purchase
mineral rights and leases and to develop and exploit

the Toronto Stock
commission.

Exchange, with

Proceeds—For

a

20% underwriting

general corporate purposes.

Underwriter—To be named by amendment.
•

New

mining properties. Office—21 North Duke St., Lancaster,
Underwriter—None.

•

Light Metals Refining Corp., New York (3/17)
1,250,000 shares of common stock (par $1).
Price
$4 per share.
Proceeds — For construction and
equipment of control plant, and main plant, working
-capital, advance royalties and reserves.
Business
To

Feb.j 15 filed

—

and market the products.
writer—Philip Gordon & Co., Inc., New York.
.:: i

ore

Under¬

n

Long Island Lighting Co.

(3/4)

Feb. 15 filed 70,000 shares of cumulative
series D (par $100).
Price—To be

preferred stock,
supplied by amend¬
Proceeds—To repay bank loans and for new con¬

ment.

struction.

Underwriters—The First Boston

Corp., W. C.

Langlej^ & Co. and Blyth & Co., Inc.
Los

Angeles Drug Co.
•Jan. 28 filed $178,000 of 15-year 5% sinking fund de¬
bentures, due Oct. 1, 1966, and 50,000 shares of capital
stock (no par), the latter to be first offered for sub¬
scription by stockholders. Price—For debentures, at par;
and for stock,

$10

per

share. Proceeds—To finance

ex¬

panded^ merchandise

inventory and operating equip¬
(new building), and for working capital. Under¬

ment

writer—-None.
O

Magnolia Park, Inc.

(3/5)

(par 10 cents) to be offered in units of $100 of deben¬
tures and 10 shares of stock.
Price—$101 per unit. Pro¬
ceeds—For construction of racing
plant and for ex¬
penses

incident to racing activities. Underwriters—GearOtis, Inc. and Hunter Securities Corp., both of

hart

&

New

York; and T. J. Feibleman

& Co., New

Orleans, La.

it Matheson Co.,& Inc.
19
(letter of notification)

$50,000 of 10-year 6%
convertible debentures dated Jan.
1, 1954 and due Jan.
1, 1964. Price—100% and accrued interest. Proceeds—

To construct plant in
Norwood, O., and for
tal.
Underwriters—Mohawk

working capi¬
Valley Investing Co., Inc.,
Utica, N. Y., and Security & Bond Co., Lexington, Ky.
McBride Oil & Gas
Corp., San Antonio, Tex.
2,000,000 shares of common stock (par 10
Price—To be supplied by amendment. Proceeds
To repay notes, for
exploration and drilling expenses
and additions to
properties, and for

April 24.

on

New

Financial Advisor—The First Boston Corp.,

York.

Nuclear

Jan.

21

Research

Co.

(Pa.)

Medina Oil Corp.,
Orlean,
9 (letter of
notification)

N. Y.
2,800 shares of common
per share).
Proceeds—To

Dec.

stock.

Price—At par ($100
purchase drill rig, etc. Office — 10 East Corydon
St.,
Bradford, Pa.
Underwriter
Winner & Myers, Lock
Haven, Pa.
—

4

Merritt-Chapman & Scott Corp., New York
Dec. 31 filed 513,594 shares of

"being

offered

in

exchange

^authorized and issued
Steel

Corp.

stock for

expire

at

each

on

rate
2.1

Feb. 26.

common

of

one

stock (par $12.50)
1,078,546.25 shares of
stock (par $1) of Newport

common

for

share

of

Merritt-Chapman

shares of Newport stock.

Offer will

Underwriter—None.

tions,

Jan.

5 filed 26,666 shares of
special common stock (par
$75—limited dividend) and $1,500,000 of certificates of
participation (to be sold in multiples of $75—5% inter¬
est). Proceeds—From sale of these securities,
together

-with

bank

facilities.

borrowings,

are

to

Underwriter—None.

company employees.

Missouri

Public

be used for expansion of
Sales will be handled by

Offering—Expected during March.
Service

Co.

Jan. 14 filed 527,865 shares of
be offered for

common stock (no
par) to
subscription by common stockholders on
a share-for-share basis
(with a 13-day standby). Price
—-To be supplied
by amendment. Proceeds—Together

with other

funds, to acquire capital stock of Gas Service
Co. (a subsidiary of Cities Service
Co.). Underwriter—
Kidder, Peabody & Co., New York. Offering—Tempo¬
rarily delayed.
Formal hearing will be held before
Kansas Corporation Commission
beginning March 15.
.

Mohawk Airlines, Inc.
(3/1)
11
(letter of notification) 72,500

shares of capital
(par $1)..
Price
$4 per share.
Proceeds
To
acquire flight equipment and for working capital. Office
—

—Cornell
—None.

—

University Airport, Ithaca, N. Y. Underwriter

(letter of notification) 2,000,000 shares of com¬
(par one cent).
Price—15 cents per share.

to

writer—Tellier &

Co., Jersey City, N. J.

f Ontario
Feb.

i

2

filed

$5,000,000 each March 15, 196*0 through 1964, inclusive, and
$25,000,000 on March 15, 1980.
Price—To be supplied
by amendment.
Proceeds — To be advanced to Hydro
Electric Power Commission of Ontario.

Underwriters—

Harriman

Riplely & Co. Inc.; Wood, Gundy & Co., Inc.;
Corp.; Smith, Barney & Co.; The Do¬
minion Securities Corp.; A. E. Ames & Co.,
Inc.; and
McLeod, Young, Weir, Inc.; all of New York.
The

First Boston

it Parkmaster Systems,
Feb.

15

(letter

stock.

mon

of

Inc.,

Spokane, Wash.
50,000 shares of

257,338 shares of

common

stock

(par $1).

Stock

Exchange, or through special offerings or
.secondary distributions. Proceeds—To Lehman Borthers
(400 shares); partners of Lehman Brothers and members
of their immediate families
(150,458); and The Lehman
Corp. (106,480). Underwriter—None. No general offer

planned.




(3/2)

Edison Co.

California

filed

Witter &

notification)

Price—At

($1

•

1

(par $25).,
Proceeds—To.

600,000 shares of common stock

be

supplied

amendment.

by

Boston

First

Under¬

Corp., New York, and Dean

Co., San Francisco, Calif.
(3/1)

Southern Natural Gas Co.

$20,000,000 of first mortgage pipe line sink¬

Jan. 25 filed

ing fund bonds due 1974. Proceeds—To repay bank loans
to reimburse treasury for additions already made

and

Co. Inc..; The First Boston Corp.; Blyth & Co., Inc. and
Kidder, Peabody & Co. (jointly). Bids—To be received

to 10:30 a.m. (EST) on March 1 at 90 Broad St., New

up

York, N. Y.

it Strevell-Paterson Finance Corp.
Feb. 19 filed 640,000 shares of common stock (par 50
cents) to be offered in exchange for the $300,000 par
of
value
authorized, issued and outstanding capital

com¬

Strevell-Paterson Finance Co. on the basis

stock of

of

13

shares

the

(a)

Corporation stock for each of the 5,000
cumulative preferred stock (par $10) of

shares of
of

5%

Company

(b)

and

share). Proceeds-—
For working capital and expenses incident to business of
mechanical parking of autos.
Office—602 Spokane &

of the company.

Eastern

23 shares of Corporation stock
shares of $10 par common stock

City, Utah.

par

per

Building, Spokane, Wash. Underwriter—Walter
J. N'icolls & Co., Spokane, Wash.
Penn-Dixie Cement Corp., New York (3/1)
4 filed 120,427 shares of capital stock (par $7) to
be offered for subscription by stockholders of record

Feb.

26

shares
be

the

on

basis

of

supplied

share

new

one

held; rights to expire

on

for

March

each

five

Price—To

15.

by amendment.

Proceeds—To repay bank
loans and for expansion program. Underwriter—Merrill
Lynch, Pierce, Fenner & Beane, New York.

filed

18

of

first

mortgage

bonds

due

Proceeds—To repay bank loans and for
construction.
Underwriter—To be determined by

new

competitive
&

$12,000,000

1, 1984.

Probable

bidding.

bidders:

Halsey,

Stuart

Co.

Inc.; Equitable Securities Corp.; Kidder Peabody
& Co., Merrill Lynch, Pierce, Fenner & Beane, Union
Securities Corp. and White Weld & Co. (jointly); Har¬
riman

Ripley & Co., Inc.; Kuhn, Loeb & Co., Lehman
Brothers, Drexel & Co. and Salomon Bros. & Hutzler
to

up

11

a.m.

(EST)

on

Bids—Expected to be
March

17.

for each seven shares

Hedges stock, and will expire

less extended.
•

4

March 1, un¬

Underwriter—None.

Plastic Wire & Cable

Feb.

on

Corp., Jewett City, Conn.

(letter of notification)

21,952 shares of common
stock (par $5) being offered for subscription by common
stockholders on the basis of one new share for each five
shares

held

—$10.50

Feb. 2;

on

per

share.

derwriter—

None,

will manage
©

Rand
12

a

rights expire

March 12. Price

on

Proceeds—For working capital. Un¬
but Putnam & Co., Hartford, Conn.,

group to

assist in obtaining subscriptions.

Development Corp., Cleveland, O.

filed 200,000 shares of common stock (par five
Price—$10 per share. Proceeds—To pay devel¬

cents).

Electric

Suburban
29

(3/3)

bonds, series A,,

$4,000,000 first mortgage

filed

1, 1984. Proceeds—To repay bank loans and
Underwriters—To be determined

construction.

new

by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Lehman Brothers; Kidder, Peabody & Co.;
Merrill Lvnch, Pierce, Fenner & Beane and Union Se¬
curities Corp.

(EST)

a.m.

(jointly). Bids—To be received up to 11
March 3 at 441 Stuart St., Boston, Mass.

on

Textron

Incorporated, Providence, R. I.
4% preferred stock, series

Feb. 8 filed 195,668.4 shares of
B

and 489,171 shares of common stock

(par $100)

50

(par

to be offered to holders of the 978,342 shares
stock of American Woolen Co. on the basis of

cents)

common

The

share of preferred and one-half

a

share of

stock for each American Woolen common share.

common

will

offer

expire March 22, unless extended.

Un¬

derwriter—None.

it Union Uranium Co., Denver, Colo.
16 (letter of notification) 29,910,000 shares of com¬
mon stock, purchasers of the first 9,970,000 shares to be
given the option to purchase two additional shares
for each share purchased. Price—At par (one cent per
share).
Proceeds—For mining expenses.
Office—230
E. 19th Avenue, Denver, Colo. Underwriter—J. W. Hicks
Feb.

&

Co., Denver, Colo.
U.

S.

Feb. 12
stock

Airlines, Inc., New York
(letter of notification) 19,000 shares of common

Price—-At market (estimated to
Proceeds—To W. B. HagUnderwriter—Thomas & McKinnon,

(par five cents).

be about 10 cents par

(3/5)

re¬

Underwriter—The First Boston Corp., Ne\y York.

poses.

for

March 31.

on

Proceeds—To

$1,100,000 bank loans and for general corporate pur¬

pay

•

held; rights to expire

supplied by amendment.

Price—To be

one-fifth of

Benson &

convertible

preferred stock (par $50) to be offered to common stock¬
holders of record March 15 on the basis of one new share

of

Philip Morris & Co., Ltd., Inc., New York
Jan. 13 filed 443,561 shares of common stock (par $5)
being offered in exchange for common shares of Benson
& Hedges, on a share-for-share basis. Offer is subject to
acceptance by holders of not less than 355,460 shares of

Office—Salt Lake

Underwriter—None.

it Stromberg-Carlson Co. (3/16)
Feb. 24 filed
72,025 shares of cumulative

due March

-(3/17)
Feb.

of the 25,000

each

for

Jan.

it Pennsylvania Electric Co., Johnstown, Pa.

gerty, Tampa, Fla.

share).

New York.

Utah Power &

opment costs and for purchase of laboratory equipment.
Business—The creation and development of new prod¬
ucts.
Company does not engage in basic research. Un¬

Feb.

derwriter—Fulton, Reid & Co., Cleveland, O.

program.

16

filed

Light Co.

(3/23)

(no par).
construction

200,000 shares of common stock

Proceeds—To

repay

bank

loans

for

and

Underwriter—To be determined by competi¬
bidders: Blyth & Co., Inc.; Kidder,

Regis Paper Co., New York
filed 93,000 shares of common stock (par
$5) to
be offered in exchange for
30,000 shares of common
stock of Superior Paper Products Co. on the basis of 3.1
shares of St. Regis stock for each Superior share. Un¬

tive bidding. Probable

derwriter—None.

to 11

St.

Feb.

3

Scurry-Rainbow Oil Ltd., Calgary, Alta., Canada
15 filed 4,700,416 shares of capital stock
(par 50

Peabody

(jointly).
a.m.

1984.

stock

on

a

basis

of

3.8

shares

for each Rainbow Oil share.

of

Scurry-Rainbow stock

Underwriter—None.

and

Merrill

Lynch,

Pierce,

Fenner

&

Bids—Tentatively expected to be received
on March 23.

filed

16

Light Co. (5/19)
of first mortgage

$15,000,000

Proceeds—To repay bank

struction.

petitive

up

(EST)

Utah Power &

cents) to be offered in exchange for the 2,670,000 shares
of Scurry Oils Ltd. stock on a share-for-share
basis, and

exchange for the 534,320 shares of Rainbow Oil Ltd.

Co.

(jointly); Lehman Brothers; The First Boston
Corp.; Union Securities Corp. and Smith, Barney & Co.

Feb.

in

&

Beane

Feb.

Underwriters—To

bidding.

Probable

bonds

loans and for

be

new

determined

bidders:

Halsey,

by

due
con¬
com¬

Stuart

&

Co.

Inc.; White, Weld & Co. and Stone & Webster Se¬
curities
Corp. (jointly); Union Securities Corp. and

$100

(jointly); Lehman Brothers and
(jointly); The First Boston Corp.
and Blyth & Co., Inc. (jointly); Kidder, Peabody & Co.;
Salomon Bros. & Hutzler.
Bids—Tentatively expected
to be received up to noon (EST) on May 19.
it Waterworks Equipment Co., Salt Lake City, Utah
Feb. 17 (letter of notification) 500 shares of common

it Sheraton Corp. of America, Boston, Mass (3/10)
Feb.

18

1979

filed

$3,273,800 of 6%

debentures

due

April

1,

(with warrants to purchase shares of
50 cents)

par

holders

of

to

record

be

offered for

about

March

common stock,
subscription by stock¬

10

on

the

basis

of

supplied

Price—At the market price then
prevailing on the New

York

8

to properties. Underwriters—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart &

(Province of), Canada (3/3)
$50,000,000 of debentures to mature

filed

17

of

Monterey Oil Co., Los Angeles, Calif.

Feb.

Southern
Feb.

Price—To

on

debentures' (with stock purchase warrants) for each
100 shares of common stock held. Price—To be

Feb.

,stock

(with an oversubscription privilege)^,
March 3. Price—$14.75 per share.
new
construction, etc.
Underwriter—•

held

expire

writers—The

(3/24)

construct laboratory and for working capital.
Office—2563 Grays Ferry Ave., Philadelphia, Pa. Under¬

Feb.

Mississippi Chemical Corp., Yazoo City, Miss.

shares

stock

mon

(jointly); The First Boston Corp.

—

stock (par $4.50)

being offered for subscription by common stockholders
of record Feb. 17 on the basis of one new share for each

retire bank loans and for construction program.
•

received

Underwriter

Co.

Gas

&

Jan. 28 filed 286,436 shares of common

Kidder, Peabody & Co., New York City.

for each New Bedford share held. The offer will expire

cents)*

Texas,,:

Electric

Proceeds—For

being offered in exchange for common stock
Light Co. held by minor¬
ity stockholders on the basis of 4% New England shares

Jan. 26 filed

working capital.
Continental Securities Corp., Houston,

|

Carolina

South

(par $8)

March

Feb.

Underwriter—To be filed by

Ida.

of New Bedford Gas & Edison

Feb.

Jan.- 29 filed $2,500,000 of 6% subordinated convertible
■debentures due 1969 and 250,000 shares of common stock

Wallace,

rights to

—

refine beryllium

1088,

amendment.

10

England Gas & Electric Association

Proceeds—To repay bank loan and current trade obliga¬

'.>

•>

Box

Dec. 10 filed 32,126 common shares of beneficial interest

.

Feb.

Pa.

J

^

New Bristol Oils, Ltd., Toronto, Ont., Canada
Dec. 18 filed 1,000,000 shares of common stock (par $1).
Price—To be related to the bid price of the shares on

Smith,

Bear,

Barney

&

Stearns &

Co

Co.

by amendment.

stock to be offered to stockholders and

term

—At par

son

Proceeds—Principally to reduce shortUnderwriters—Paine, Webber, Jack¬
Curtis, Boston, Mass.; and Hamlin & Lunt, Buf¬

bank

&

falo, N. Y.

loans.

Silver Buckle
Feb.

10

mon

stock

Street,

capital.

-

Mining Co., Wallace, Ida.

(letter of notification)
(par 10 cents).

Proceeds—To develop

1,083,556 shares of com¬
Price—12l/z cents per share.

Vidicatot claims.

Address—P. O.

employees.

Underwriter—None.

it Wellington Fund, Inc., Philadelphia, Pa.
Feb. 19 filed 2,000,000 shares of common stock.
At

market.

None.

Price

($100 per share). Office—149 West 2nd South
Salt Lake City, Utah.
Proceeds—For working

Proceeds—For
i

investment.

Price—

Underwriter—

Number 5302

Volume 179

.

.

.

The Commercial and Financial Chronicle

♦

/

<

(917)
•

Columbia Gas System, Inc.

West Coast Pipe Line Co., Dallas, Tex.
Nov.

12-year 6% debentures
due Dec. 15, 1964, and 580,000 shares of common stock
(par 50 cents) to be offered in units of one $50 deben¬
ture and one share of stock;
Price—To be supplied by
amendment. Proceeds—From sale of units and 1,125,000
additional shares of common stock and private sales of
1952 filed $29,000,000

20,

$55,0OO,o00 firsj; mortgage bonds to be used to build a
1,030 mile crude oil pipeline.
Underwriters — White,
Weld & Co. and Union Securities Corp., both of New
York.
Offering—Postponed indefinitely.

Nov.

20, 1952 filed 1,125,000 shares of common stock (par
50 cents). Price—To be supplied by amendment.
Pro¬
ceeds—Together with other funds, to be used to build
pipeline. Underwriters—White, Weld & Co. and Union
Securities Corp., both of New York.
Offering—Post¬
poned indefinitely.

^Wisconsin Public Service Corp. (3/12)
Feb. 19 filed 316,867 shares of common stock (par $10)
to be offered for subscription by common stockholders

qi record March 12 on the basis of one new share for
seven shares held; rights to expire
on March 30.
Up to not
exceeding 10,000 shares of unsubscribed

each

shares

first to employees.

offered

be

to

18

it

reported

was

basis of

company

financing early this year.

tional

determined

is considering addi¬
Underwriters—To be

competitive bidding. Probable bidders:
(1) For bonds — Halsey, Stuart & Co. Inc.; Morgan
by

(2) For stock — Merrill Lynch, Pierce,
White Weld & Co., Shields & Co. and
R. W. Pressprich & Co. (jointly); Lehman Brothers and
Union Securities Corp. (jointly); Morgan Stanley & Co.

Price—To be

amendment.
Proceeds — For' construction
program.
Underwriters—The First Boston Corp. and
^Merrill Lynch, Pierce, Fenner & Beane, both of New
York; Robert W. Baird & Co., Inc., Milwaukee, Wis.;
and William Blair & Co., Chicago, 111.
by

& Beane,

Financial Advisors—The First Boston Corp.
•

Community Public Service Co.
16 company asked the FPC for permission to issue
and sell in the latter part of March $3,000,000 of first

bonds due March 1, 1984. Proceeds—To re¬
bank loans and for new construction. Underwriters
—Previous bond financing was done through private
channels. Bidders if competitive, may include: Halsey,
mortgage

pay

Stuart

&

Equitable Securities Corp.; Blyth &

Co. Inc.;

Co., Inc.
Consolidated Natural Gas Co.
was

reported company plans to issue and

sell

$25,00,000 of debentures due 1979.
Proceeds — To pur¬
chase stock of company's operating subsidiaries, who in

apply these proceeds for construction. Under¬
writers — To be determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; White,
Weld & Co. and Paine, Webber, Jackson & Curtis (joint¬

turn will

ly); Morgan Stanley & Co. and The First Boston Corp.
(jointly).
Offering—Tentatively expected in May.

(3/24)

if Dallas Power & Light Co.
9

it

was

announced

company

plans issuance and

sale of 70,000 shares

Prospective Offerings
American Louisiana Pipe

Line Co.

subsidiary of American Natural Gas
«Co., asked Federal Power Commission to authorize con¬
struction of a $130,000,000 pipe line, to be financed
through the issuance of $97,500,000 of first mortgage
fbonds, $12,000,000 of interim notes convertible to pre¬
ferred stock at option of company, and $20,500,000 of
•common stock (par $100).'the latter to be sold to parent.
^Hearings before the FPC will commence on March 8.
.Nov. 10 company, a

•*

Power &

Arkansas

iFeb.

8 it

Light Co.

(4/20)

'70,000 shares of cumulative preferred stock (par $100).
'.Proceeds—For
construction program.
Underwriters—
"To

determined

be

W.

C.

competitive

by

bidding.

Probable

Blyth & Co., Inc.; The First Boston Corp. and

\foidders:

Langley

(jointly);

Co.

&

Lehman

March 24.
•

Loan Co.

Federal

stockholders

23

Feb.

550,400

Brothers,

was

Xbonds

reported company plans to sell, probably

issue of about $7,500,000 first mortgage
1984. Underwriters — To be determined by

August,

an

due

Probable bidders: Halsey, Stuart
Corp.; Lehman Brothers,
JStone & Webster Securities Corp. and White, Weld &
<Co.
(jointly); Blyth & Co., Inc., Equitable Securities
Corp. and Central Republic Co. Inc. (jointly); Merrill
Lynch, Pierce, Fenner & Beane and Union Securities
tcompetitive
Co.

bidding.

Inc.; The First Boston

Boston

announced company plans to

Offering—Tentatively expected in June.

Co. Inc.
«

was

Undewriters—Simon, Strauss & Himme,
Inc., and Chace, Whiteside, West &

stockholders

approved a proposal to increase
ithe authorized common stock (par $10) from 1,600,000
23

sshares to 5,000,000

.-stock
~tto

(par $50)

shares and the authorized preferred

from 181,855

shares to 800,000 shares

provide for further possible financing. Proceeds—
expansion, etc. Underwriters—Harriman Ripley &>

Wor

Co. Inc. and Hemphill, Noyes & Co.

it

was

announced

company

asell around the middle of 1954 an

to

in¬

capitalization to $3,000,000, following which
a
registration statement will be filed with the SEC to
authorize a new offering.
There are presently author¬
crease

its

shares of no par value, of which 33,750 shares
will be outstanding following present offering and sale
ized 35,000
of

shares

30,000

stock at $10
per share.
lending organization. Office—

of common

Business—A discount and

Fidelity Bldg., Dallas, Tex.

Underwriter—May be Boy-

Bank of Portland

First National

23 stockholders were to vote on

Feb.

(2/26)
approving a pro¬

(Ore.)

posal to issue and sell to stockholders of record Feb. 26
a
total of 400,000 additional shares of capital stock on
the basis of one new share for each three shares held.

share. Proceeds—To increase capital and
surplus.
Underwriter—Unsubscribed shares to be pur¬
chased by Transamerica Corp.
Price—$40

per

First National
12

it

was

Bank of Toms River, N. J.

announced

(5/14)

bank plans to offer for sub¬

scription by its stockholders of record May 1, 1954, an
additional 3,000 shares of capital stock (par $10) on the
basis of one new share for each 26 shares held; rights to

intends to offer and

issue of $4,000,000 first

was

reported company plans sale during the

quarter of 1954 of $10,000,000 common stock after
Public Service Co. of its
of Central Maine Power Co. common stock.
TProbable bidders: Blyth & Co., Inc. and Kidder, Peabody

r&irst

^distribution by New England

^holdings

(jointly); Coffin & Burr, Inc.; A. C. Allyn & Co.,
and Bear, Stearns & Co. (jointly); Harriman Ripley

Co.

ifnc.

<'& Co., Inc.

Central

•

Power & Light Co.

-Jan. 27 it was reported company

plans to issue and sell

^$9,000,000 to $10,000,000 first mortgage bonds, series F,
<due 1984.
Proceeds—To repay bank loans and for new
^construction.
Underwriters—To be determined by com¬

petitive bidding.
Probable bidders: Halsey, Stuart &
'do. Inc.; The First Boston Corp., Eastman, Dillon & Co.,
^Goldman, Sachs & Co. and White, Weld & Co. (jointly);
-Merrill Lynch, Pierce, Fenner & Beane and Salomon
/Bros. & Hutzler (jointly); Lehman Brothers; Union Se¬
curities Corp. and Kidder, Peabody & Co. (jointly). Bids
—Tentatively expected to be received in May.




Shields' &

and

Co_

(4/12f;;

ital stock (par $10) on a pro rata basis.
Price—Nob ex¬
ceeding $55 per share.
Proceeds
To increase capital
and surplus.
Underwriters—None.
—

Indiana &
Jan. 27 it

Michigan Electric Co.
announced

was

company plans to sell around
issue of about $16,500,000 first mort¬
1984 and 40,000 shares of cumulative

November, 1954,
bonds

gage

an

due

preferred stock

(par $100).

Underwriter

termined by competitive bidding.
For bonds—Halsey, Stuart & Co.

—

To£be de¬

Probable bidders: (1>

Inc.; Union Sdciurities
Corp., Goldman, Sachs & Co. and White, Weld- & Co.
(jointly); The First Boston Corp.; Harriman Ridley &
Co. Inc.; Kuhn, Loeb &
Co.; (2) for preferred—The First

Boston

Union

Corp.; Smith, Barney & Co.; Lehman brothers*
Securities Corp.

Industrial

Trust

8:

Co.

of

.

Philadelphia

Jan. 13 it

was announced
company plans to issue and seU
11,223 additional shares of capital stock (par $5) being

rights

subscription by stockholders

share for

new

to

expire

each

20

the basis of

on

shares held

of

as

March 2.
Price—$7.50
Proceeds—To increase capital and surplus.
on

Jdn^ 22;

pef share;.

Inter-Mountain Telephone Co.

mon

Florida

Power

& Light Co.

reported compariy may later this year
issue and sell about $15,000,000 of first mortgage bonds.
Underwriters—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; White, Weld
25

it

was

Lehman Brothers; Merrill Lynch, Pierce, Fenner
& Beane; Glore, Forgan & Co. and Harriman Ripley &
& Co.;

Co. Inc.

(jointly).

Philadelphia, Pa.

April
22 on increasing the authorized common stock (par $2.50)
from 500,000 shares to 1,000,000 shares. There are pres¬
ently 276,088 shares outstanding and an additional 43,217
shares are reserved for conversion of debentures and
the remaining 180,695 shares are available for the em¬
ployees' stock bonus plan. The proposed increase in
capitalization is necessary to provide additional shares
to finance the continued growth of the company, or if it
seems advisable for stock dividends or a stock split.
Un¬
20

it

was

announced stockholders will vote

derwriter—Estabrook & Co., New York and Boston.
General
Dec. 16 it

Public

was

reported

was

V.."*1'

stockholders

common

stock.

in April,

company

some

1954J. may

additional

com¬

Underwriter—Courts & Co., Atlanta, Ga.

bonds due 1984.

Proceeds

Underwriters

To

—

be

For construction program.
determined by competitive bid¬
—

ding, Probable bidders: Halsey, Stuart & Co. Inc.; White,.
& Co.; Glore, Forgan &
Co.; Kidder, Peabody &
Co.; Union Securities Corp., Salomon Bros. & Hutzler
and

Utilities Corp.

announced company plans to offer about

600,000 additional shares of common stock (par $5) to
stockholders in March or April, 1954 — probably on the

Merrill

Lynch, Pierce, Fenner & Beane
Corp.: Lehman Brothers.

The First Boston

(jointly);

Kansas City Power & Light Co.
Jan.

13 it

announced that

was

sell later in

1954 additional

company

may

issue and

first mortgage bonds.

Pro¬
repay bank loans and for new construction.
Underwriters—To be determined by competitive
bidding.
ceeds—To

Probable

bidders: Halsey, Stuart & Co.
Inc.; Lehman
Brothers and Bear, Stearns & Co.
(jointly); Kuhn, Loeb
& Co., Salomon Bros. & Hutzler and Union
Securities

Corp.

(jointly); Glore, Forgan & Co.; Blyth & Co., Inc.
Corp. (jointly); White, Weld & Co.
and Shields & Co.
(jointly); Harriman Ripley & Co.* Inc.;
Equitable Securities Corp.

and The First Boston

«

Laclede Gas Co.

(3/24)

Jan. 28 stockholders approved issuance
of not to exceed
$10,000,000 of non-convertible debentures. Financing iif
form of debentures,
bonds, preferred or common stock:
is expected before June
15,^ 1954. Underwriters—For

debentures, may be Lehman Brothers and Merrill
Lynch, Pierce, Fenner & Beane. For bonds, if competi¬
tive, bidders may include Halsey, Stuart & Co. Inc.;
Lehman Brothers
The First

and

Goldman. Sachs & Co. (jointly);
Boston, Corp. Bids—Expected to be received
Registration—Planned for Feb. 26.

March 24.

Louisiana
sell

9

it

Power &

was

$100).

Light Co.

announced

70,000

shares
Proceeds

of

cumulative

For

(3/23)

plans

company

to

preferred

issue
stock

and

(par

construction

program.
Under¬
by competitive bidding.
Blyth & Co., Inc.; W. C. Langley &
Co.
and
The First
Boston
Corp. (jointly); Lehman
Brothers; Kuhn, Loeb & Co.; Union Securities Corp.;
Equitable Securities Corp.; Kidder, Peabody & Co. and
Merrill Lynch, Pierce, Fenner & Beane
(jointly). Regis¬
—

writers—To
Probable

be

determined

bidders:

tration—Planned for Feb. 25.

(EST)

on

Bids—Expected

an

to

up

noon

March 23.

Louisville & Nashville RR.
Nov. 12 it

sell

if Foote Mineral Co.,
Feb.

it

23

Jersey Central Power & Light Co.
16 it was reported
company tentatively plans to
issue and sell in 1954 about
$6,000,000 first mortgage

Feb.

vote on in¬
creasing authorized preferred stock from 250.000 to 500,000 shares and the common stock from 2,500,000 to 5,000,000 shares. Underwriters—Kidder, Peabody & Co., and
Merrill Lynch, Pierce, Fenner & Beane, both of New

Jan.

it

Hutzler

* Gulf Insurance Co., Dallas, Texas
V".
Mansfield, President, announced thai; com¬
pany plans to offer to its stockholders of record
jfepiyl'VL
the right to subscribe for 5,000 additional shares of
cap¬

if Florida Power Corp.
15 it was announced stockholders will

York.

7

&

10. Bids—Expected to>
be received up to 11 a.m.
(EST) on April 6.
a
•:

on

Competitive bidding. Probable bidders: Halsey, Stuart
■*& Co. Inc.; Stone & Webster Securities Corp.; Kidder,
JPeabody & Co. and White, Weld & Co. (jointly).
Central Maine Power Co.

Bros.

Registration—Planned for March

expire on June 16. Price—$50 per share. Proceeds—To
increase capital and surplus. Underwriter—None.

smortgage bonds. Proceeds—To repay bank loans and for
mew construction.
Underwriters—To be determined by

-•Oct.

Salomon

Weld

Feb.

Central Illinois Electric & Gas Co.
Dec. 9

Pope,

Fidelity Trust of America, Dallas, Tex.
Dec. 22 it was announced that company plans

Jan

Carrier Corp.

JFeb.

N.

William

•

Edison Co.

issue and
ssell about $15,000,000 of first mortgage bonds due 1984.
IProceeds—For construction program.
Underwriters—To
toe determined by competitive bidding. Probable bidders:
/Halsey, Stuart & Co. Inc.; The First Boston Corp.; Lehiman Brothers; Kuhn, Loeb & Co. and A. C. Allyn & Co.
Unc. (jointly); White, Weld & Co.; Harriman Ripley &
it

15

Co.,

(jointly); Harriman Ripley & Co., Inc.; Union Securities
Corp. and Equitable Securities Corp. (jointly); The Firs-t
Boston Corp.; Lehman
Brothers; Morgan Stanley & Co-

Dec.

len, Kasper & Co., Dallas, Tex.

Corp. (jointly).
Web.

&

offer to its

Winslow, Inc.

ian

repay bank loans and for construction program^.
Underwriters—To be determined by competitive bid¬
ding. Probable bidders: Halsey, Stuart & Co. In<L;, Blyth

share of new 77-cent cumulative con¬
vertible preferred stock and one share of class A com¬
mon
stock for each participating preferred share held.
Price—To stockholders, $15 per unit;
and to public

ferred stock, one

April 20.

IFeb. 8 it

proceed*

—To

Dec.

<^EST)

Light Co.

'

reported company plans issuance and sale
$11,000,000 first mortgage bonds due 1984.

change the name of corporation to Signature Loan Co.,
It is proposed to offer to the holders of the 29,458
shares of outstanding $1.20 cumulative participating pre¬

$15.50 per unit.

Power &

::}i 5

(4/6)

was

Inc.

Securities Corp. and White, Weld & Co.
Bids—Expected to be received up to 11 a.m.

on

Dec. 15 it
of

one

shares and the authorized convertible pre¬
ferred stock from 100,000 shares to 250,000 shares and
to

Un¬

clearing agent.

Georgia Power Co.

offered for

the authorized class A common

Equitable
<(jointly).

Arkansas

Beane may act as

approved

Inc.
proposal to increase
stock from 250,400 shares

Pro¬

ceeds—To be invested in the domestic subsidiaries.

of Pittsfield,
a

Price-

just prior to the offering date.

derwriter—None, but Merrill Lynch, Pierce, Feriher &

to

reported company plans to issue and sell

was

of cumulative preferred stock (par
$100).
Proceeds — For construction program.
Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Union Securities Corp.; The First Boston
Corp.; White, Weld & Co.; Lehman Brothers; Harriman
Ripley & Co. Inc. and Kidder, Peabody & Co. (jointly).
"Registration — Planned for Feb. 25.
Bids — Expected

>

»

share for each 15 shares held.

one new

be determined

Feb. 15, T. R.

Jan. 27 it

Feb.

«•

To

Stanley & Co.

Fenner

Feb.

West Coast Pipe Line Co., Dallas, Tex.

supplied

Jan.

41

was

•

reported that the company may issue and

issue of bonds late in 1954.

Proceeds—To retire

$24,610,000 Atlanta^ Knoxville & Cincinnati Division 4%
May 1, 1955, and for general corporate pur¬
poses. Underwriters—May be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Morgan Stanley & Co.; White, Weld & Co. and Salomon
Bros. & Hutzler (jointly).
>'
bonds due

Metropolitan Edison Co.

.

.

,

Dec. 16 it was reported company may sell in 1954 about
$3,500,000 first mortgage bonds due 1984. Proceeds—For
construction program.
Underwriters^-To be determined
by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; White, Weld & Co.; Kidder,
Peabody & Co.
and Drexel & Co. (jointly); Kuhn, Loeb & Co. and Salo¬
mon Bros. & Hutzler (jointly).

Continued

on

page

4Z

*•

42

The Commercial and Financial Chronicle

<;dis>

Continued

jrom

,

;

by the company on March 3 for
from it of $3,000,000 equipment trust cer¬
tificates, series XX. Probable bidders: Halsey, Stuart &
Co. Inc.; Salomon Bros. & Hutzler; Kidder, Peabody &
Co.; Blair, Rollins & Co. Inc.

Bids "will
*

Jan.

(3/3)

Pacific RR.

Missouri

Ohio

41

puge

received

be

the purchase

Missouri Public Service Co.
it

28

Dec.

announced company plans to issue and

was

sell $14,000,000 of common

banks in

from

stock and borrow $18,000,000

connection with proposed acquisition of

1,500,000 shares of common stock of Gas Service Co. of
at a total cost of $32,000,000. Follow¬
ing consummation of proposed merger of the two com¬

Co.

(3/26)

I

issue

an

1984.

struction.

(4/14)

announced

of

Underwriters—To

bidding.

petitive

Probable

be

determined

bidders:

Feb.

it

8

sell

was

announced

of
Proceeds—To

50,000

$100).

shares

before

additional shares of
share for each four
shares held. Price—At par ($100 per share). Proceeds—
To repay advances from American Telephone & Tele¬
graph Co., the parent, and for new construction. Under¬
April

on

30 for 487,248

the basis of

one new

writer—None.

Fuel

National

Feb. 9 it

bidding.

plans additional financ¬

company

ing in the next few weeks.

Underwriters—For any de¬
bentures
to
be
determined
by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; The First
Boston Corp.; Kuhn, Loeb & Co. and Wertheim & Co.
(jointly); White, Weld & Co.; Harriman Ripley & Co.
Inc.

Jan.

Union

Insurance

Fire

Co.

Corp.;

(jointly).

a.m.

&

Power

A. Rattleman, President, announced that
company plans to issue to stockholders of record about
March 16 the right to subscribe for 200,000 additional
shares of capital stock (par $5) onthe basis of one new
share for each two shares held.

Feb.

Light Co.

Proceeds—For

construction

program

Bids—Expected

to

be

Feb.

and

in

received

Telephone Co.

petitioned the New Jersey P. U.
permission to issue and sell in May
$25,000,000 of first mortgage bonds and $75,000,000 of
capital stock (the latter to American Telephone & Tele¬
graph Co.). Proceeds—To finance construction. Under¬
company

Commission

for

writers— To

be

determined

by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Kuhn,
Loeb & Co.; Morgan Stanley & Co.; Shields &
Co.;
White, Weld & Co.; The First Boston Corp.
New
Dec.

Jersey Power & Light Co.

16

it

was

construction.

Underwriters—To be determined

by
Stuart

competitive

bidding. Probable bidders: Halsey,
& Co. Inc.; Kuhn, Loeb & Co. and Lehman Brothers
(jointly); Equitable Securities Corp.; Union Securities
Corp. and White, Weld & Co. (jointly); Merrill
Lynch,
Pierce, Fenner & Beane.
New

Orleans

Public Service Inc.
reported company plans to offer for sale
$6,000,000 of first mortgage bonds due 1984 late this
year.
Underwriters—To be determined
by competitive
bidding. Probable bidders: Halsey, Stuart & Co.
Inc.;
Equitable Securities Corp.; Union Securities Corp. and
Harriman Ripley & Co. Inc.1
(jointly); Lehman
Feb.

8

it

bonds due

March

1,

1984.;

be

To

determined

by competitive bidding.4 Prob¬
Halsey, Stuart & Co. Inc.; The First
Boston Corp.; Smith, Barney & Co.; Kidder, Peabody &
Co. and White, Weld & Co. (jointly). Bids—Expected to
be received up to noon (EST) on Feb: 25.

—

able

bidders:

Kidder, Peabody & Co. and Stone & Webster Securities
Corp. (jointly); The First Boston Corp.;
White, Weld &
Co.

New York State
3

S.

company

Commission

value

of

planned
first

to

Northern States
and

be

was

sale of

bonds

sell

an

issue

of

$5,000,000

par

preferred stock early 'this spring.
It is also
issue and sell in the spring $20,000,000 of

to

mortgage bonds.
vately.
Feb. 8 it

authority from the New York

due

Previous financing
Power Co.

was

done pri¬

(Minn.)

reported company is planning the issuance

approximately $20,000,000
1984 some time

this year.

of first mortgage

Underwriters—To

determined

by competitive bidding. Probable bid¬
ders: Halsey, Stuart & Co.
Inc.; Lehman Brothers and

Riter & Co.
(jointly); Smith, Barney & Co.; Glore
Forgan & Co.; Merrill Lynch, Pierce, Fenner & Beane'
Kidder, Peabody & Co. and White, Weld & Co
(jointly)Equitable Securities Corp. and Union Securities

(jointly); Kuhn, Loeb & Co., A. C. Allyn & Co.
Co. (jointly).

Corp'

Inc. and

Wertheim &

Feb.

8 it

(Minn.)

was

reported company plans to issue and sell
150,000 shares of cumulative preferred stock
(no par)
1,219,864 shares of common stock (par
$5), the latter
to be first offered for
subscription by common stock¬
holders on a l-for-10 basis
(with an oversubscription
privilege). Underwriters—To be determined
by com¬
petitive bidding. Probable bidders:
(1) For preferred
and

stock—Lehman

Brothers

Smith, Barney & Co.
Brothers

and

Riter

&

and

(2)

Riter

For

common

&

Co.

(jointly)-

stock—Lehman

Co.

(jointly); The First Boston
Corp., Kuhn, Loeb & Co. and Blyth &
Co., Inc. (jointly)*
Smith, Barney & Co.; White, Weld & Co. and
Glore
Forgan & Co. (jointly).
be received in

Bids—Tentatively

April.




expected to

(3/24)

240,000 equipment trust certificates due in 1-to-10 years.
Probable bidders: Halsey, Stuart & Co. Inc.; ^alohion
Bros.

&

Co.

&

Hutzler; Kidder, Peabody & Co.; Blair, Rollins

Inc.

/

/

•

>*

+ Texas Utilities Co. (4/13)
Feb.

19 the directors authorized sale of

stock.

250,000 shares of

Proceeds—For investment in subsidiaries.

be determined
by competitive bid¬
Probable bidders: Kidder, Peabody & Co., Merrill
Lynch, Pierce, Fenner & Beane and Union Securities
Corp. (jointly); Lehman Brothers and JBear, Stearns &

but some form of debt financing is indicated.
Under¬
writers—For any bonds will be determined by competi¬

Inc.

tive

bidding.
Probable bidders:
Halsey, Stuart & Co.
Inc.; Morgan Stanley & Co. and Drexel & Co. (jointly);
Kuhn, Loeb & Co. and Lehman Brothers (jointly); The
First Boston Corp.
Previous public offering of common
stock was handled by a group headed by Morgan
Stanley
& Co., Drexel & Co. and Glore, Forgan & Co.

ding.

Co.

it

8

issue

to

year
repay

was

reported
and sell

Underwriter

—

new

plans later thi«
securities.
Proceeds—To

company

Merrill

Lynch, Pierce, Fenner &

Beane, New York.
St.

Louis, Brownsville & Mexico Ry. (3/3)
be received by the company on March 3 for
purchase from it of $1,845,000 equipment trust cer¬
tificates, series FF. Probable bidders: Halsey, Stuart &
Co. Inc.; Salomon Bros. &
Hutzler; Kidder, Peabody &
Co.; Blair, Rollins & Co. Inc.
San

Jan.

(3/30)
Jan. 26, it was announced company plans to issue and
sell $17,000,000 of first mortgage
bonds, series E, due
1984.
Proceeds—To repay bank loans and for new con¬
Underwriters

—

To be

determined by

bidding.
Probable bidders: Halsey, Stuart &
Co.; Blyth & Co., Inc.; The First Boston Corp.; Kuhn,
Loeb & Co.; Salomon Bros. & Hutzler; White, Weld &
Co., and Shields & Co. (jointly); Lehman Brothers;
Union Securities Corp.; Merrill Lynch, Pierce, Fenner
& Beane. Bids—Expected to be received up to 11 a.m.
(EST) on March 30.
1

it Scott Paper Co.
it was announced stockholders will vote April
increasing the authorized common stock from 5,000,000 to 10,000,000 shares and the authorized indebted¬
of the company from

$25,000,000 to $50,000,000. The
financing program.
Under¬
writers—Previous offering of $24,952,800 3% convertible
debentures, in September, 1953, was underwritten by
Drexel & Co., Smith,
Barney & Co. and Merrill Lynch,
Pierce, Fenner & Beane.
has

company

no-

specific

Scudder Fund of
Jan. 29 it

was

Canada, Ltd.

announced company

Southern

common

was

Indiana

Gas

announced

stockholders

&

Electric

Co.

company

and Western Pipe

to

Toronto, Ottawa and Montreal.
Brothers; Wood, Gundy & Co.

Inc., Pittsburgh, Pa.
increasing its cap¬
ital stock in contemplation of an underwriting. Proceeds
—For expansion program and working capital. Office—
Fifth Avenue at Hamilton, Pittsburgh 6, Pa.
Meeting—
was

announced company is

Stockholders will vote Feb.

23

on

doubling present

au-

thorized^capital stock.
West

has

6

Coast

it

was

authorized
I stock

Telephone Co.
California

announced
company

P.

to issue 20,000

U.

Commission

shares of

com¬

Proceeds—To repay bank loans
and for construction program.
Underwriter — Blyth &
Co., Inc., San Francisco, Calif.
mon

(par

$25).

,

West Coast Transmission Co.
Oct.

it

14

was

that

announced

company

now

plans to

issue $29,000,000 in l-to-5V2-year serial notes; $71,000,000
in 20-year, first mortgage bonds; and' $24,440,000 in Sub¬
ordinated

long-term debentures and 4.100,000 shares of
stock

to

be

sold

to

the

public.
Proceeds—To
pipe line from the
Canadian Peace River field to western Washington and
Oregon. Underwriter—Eastman. Dillon & Co., New York.
common

finance construction of

West
Feb.

1

it

Penn

Power

a

natural gas

Co.

(4/20)

reported company plans to issue and sell
$12,000,000 of first mortgage bonds, series P, due 1984.
was

Proceeds—For construction program of West Penn Power
Co. and its subsidiaries.
Underwriters—To be deter¬
mined by competitive bidding.

Probable bidders: Hal¬
sey, Stuart & Co. Inc.; The First Boston Corp.; Lehman
Brothers; W. C. Langley & Co.; Kidder, Peabody & Co.
and White, Weld & Co. (jointly); Kuhn, Lo.eb & Co.;
Harriman Ripley & Co. Inc.
Registration — Scheduled

Bids—Tentatively expected

on

April 20.

an

(3/25)

plans to offer to its
114,166 additional shares of com¬
company

<

.

Trip-Charge,

for March 26.

intends to make

initial public offering of its common shares in the United
States to realize at least $5,000,000.

Jan. 27 it

fields

Alberta

Jan. 20 it

23

on

ness

reported this

was

*

Inc.

com¬

petitive

Feb.

it

11

,

Pipe Lines, Ltd.

Lines, Ltd. will merge preliminary to the financing and
construction of a 2,240 mile natural gas pipe line from

Feb.

Diego Gas & Electric Co.

struction.

,

Trans-Canada

Underwriters—Lehman

that

bank loans and to redeem convertible preferred

stock.

(jointly); The First Boston Corp. and Blyth & .Co.,
(jointly). Bids—Expected to be received on April

13, 1954.

the

Safeway Stores, Inc.
Feb.

27

Northern States Power Co.

Ry.

Blake, President, announced that a $50,■(
financing program is expected in the Spring
The type of securities to be issued is still
undetermined,
000,000

the

Electric & Gas Corp.

sought

-

Pacific

Bids will be received by the company up to noon (EST)
on or about March 24
for the purchase from it of $1,-

Underwriters—To

Bids will

Feb.

reported company plans issuance and sale
of debentures in April or May and $25,-

was

by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Stone & Webster Securities
Corp. and White, Weld & Co. (jointly).
-;
I"

common

Public Service Electric & Gas Co.

was

Brothers;

P.

$7,500,000 of first mortgage

Registration—Expected

March.

Texas &

Pittsburgh & West Virginia Ry. (2/25)
was reported company plans to issue* and sell

Jan. 27, G. H.

reported this company tentatively plans
issue and sale in 1954 of about $3,000,000 first
mortgage
bonds due 1984. Proceeds—To repay bank loans and for
new

stock.

Proceeds—To help refund $13,200,000 of mortgage bonds
mature from 1958 through 1960.' 'Underwriters

Corp.

termined

61.97% of the presently outstanding*

which

financing

Business—Air

000,000 of first mortgage pipe line bonds in July. Pro¬
ceeds—For new construction.
Underwriters—To be de¬

Jan. 6 it

the

10

some

private.

is

for

part

Kan.
do

may

or

reported sale of about $5,000,000 of pre¬
planned, partly for account of company
selling stockholders. Underwriters—Van

was

of $20,000,000

was announced
company plans during 1954 to
rights offering to stockholders of not exceed¬
ing 48,000 shares of common stock (no par). National

it New Jersey BeU

Aircraft

it

stock

Jan. 27 it

a

owns

Wichita,

Tennessee Gas Transmission Co.

March 29.

19 it

Fuel Gas Co.

Corp.,

Alstyne, Noel & Co., New York.

it Pennsylvania Gas Co.
make

9

ferred

Co.; Union Securities Corp.; Bear Stearns & Co., Leh¬
man
Brothers and Salomon Bros. & Hutzler (jointly)
25.

Co.

reported company

was

Temco

Inc.; Kuhn, Loeb & Co.; Blyth & Co., Inc.
White, Weld & Co. (jointly); Kidder, Peabody &

to 11 a.m. (EST)

A.)

this year,

Feb.

Stuart & Co.

Registration—Feb.

(O.

either public
circulating equipment, etc.

bank loans.
Underwriters—To be deter¬
mined by competitive bidding. Probable bidders: Halsey,
and

—

f

15 it

later

repay

Price—Expected to1 be
$30 per share. Proceeds—To increase capital and sur-.
plus. Underwriter—The First Boston Corp., New York.
Feb.

new construction.
Underwriters—To be cia,
by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Smith, Barney & Co.;
Kidder,
Peabody & Co.; Carl M. Loeb, Rhoades & Co.; Salomon
Bros. & Hutzler; The First Boston
Corp.; Equitable Se¬
curities Corp.; White, Weld & Co.
and-Shields & Co.
(jointly); Blair, Rollins & Co. Inc.
Registration*—
Planuaed for March 5. Bids—Tentatively expected on

in Colorado Interstate Gas

(EST) on

(3/29)
reported company has applied to F. P. C.
authority to issue and sell $8,000,000 first mortgage
1984.

&

company

Securities

was

due

Gas

announced

termined

Sutton

Pacific

to

was

ceeds—For

April 14.

and

it

Corp., New York, underwrote sale of Sinclair's holdings

Bids—Ten¬

(3/16)

W.

14,

Boston

Feb. 15 it

Indiana

Electric Co. (4/13)'
plans to issue and
$8,000,000 of first mortgage bonds due 1934. Pro¬
27

sell

Development Cd. ^; ^ .
k
Jan. 18 it was announced that Sinclair Oil
Corp. will re¬
ceive 769,722 shares of Pioneer'Natural Gas Co,
stock
under plan of distribution of Southwestern's
assets to
be voted upon Feb. 15.
Underwriter—Union

Probable bidd«r^Beimiafr" Brothers;

tatively expected to be received up to 11

up

National

Southern
Jan.

Southwestern

(jointly); Blyth & Co., Inc.; Union Secu¬
Bros. & Hutzler (jointly); The
Harriman Ripley & Co., Inc. and

Burr, Inc.

for

5.

April 13.

rities Corp. and Salomon

bonds

Co.

Gas

reported

was

and for "new

Kuhn, Loeb & Co., A. C. Allyn & Co. Inc. and Coffin

Stone & Webster Securities Corp.

or

plans to.tissue and

bank" loans

holders of record March 26,

capital stock

.

cumulative^r^ferred stock - (par
repay

Smith, Barney & Co., New York.
Registration—Expected

&

Underwriters—To be determined by* Com¬

construction.

petitive

company,

mon stock on a basis of one new
share for each seven
shares held about March
24; with rights to expire about
April 9. Proceeds—For construction costs. Underwriter

March

com¬

(4/14)

Feb. 20 it wa^ announced company will offer to its stock¬

on

by

Stuart

.

Ohio Power Co.

First

1954 the right to subscribe

Halsey,
Blyth &

Co. Inc.; The First Boston Corp.;
Co., Inc.;
Kuhn, Loeb & Co., A. C. Allyn & Co., Inc. and Coffin
&
Burr, Inc.
(jointly); Union Securities Corp. and
Salomon Bros. & Hutzler (jointly); Harriman Ripley &
Co. Inc. and Stone & Webster Securities Corp. (jointly).
Bids—Tentatively expected to be received up to 11 a.m
(EST) on April 14.

&

jr Mountain States Telephone & Telegraph

was

company plans to issue and
$20,000,000 first mortgage bonds due
Proceeds—To repay bank loans and for new con¬

sell

Kansas City, Mo.,

panies, it is planned to sell $9,000,000 of first mortgage
bonds, $2,500,000 of debentures and 65,000 shares of
preferred stock (par $100). Proceeds — To retire bank
loans.
Underwriter—For common stock (now in regis¬
tration): Kidder, Peabody & Co.

Power Co.
it

27

Thursday, February 25, 1954

...

•

York Corp.
Feb. 11 it was reported company may do about $23,000,000 of hew financing.
Underwriters—The First Boston

Corp. and Kidder, Peabody & Co., of New York. Meeting
—Stockholders to vote April 8 on increasing authorized
common

stock from

1,500,000 to 2,500,000 shares.

Volume 179

Number 5302

.

The Commercial arid Financial Chronicle

..

(919)

<v

43
i'

A. W. Stypes Co.
SAN

W.

Stypes

and

E.

ItOuntre'e have formed the part¬

nership of A. W. Stypes & Co. to
engage

in

Offices

are

securities

a

business.

at 625 Market Street.

111.

CHICAGO,

—

Edd

Kneibler,

the staff of

South

135

R.'

Bacon, Whipple & Co.,

CHICAGO, I1L
Rich

Fahnestock

&

Street, mem¬

Street.

York and Mid¬

years

was

DIVIDEND

1

International Salt

198th

Preferred Dividend

A

share)

has

Preferred

been

Stock

declared

of

The

a

die

upon

April

1,
at

1954,
the

American

stockholders

to

close

of

for

84

Pal¬

State

Edward

E.

BHR EVE PORT,

'

'

of

holders

of

the

FRESNO, Calif.
Graves

has

Jamieson

and

Francisco.

He

the

staff

Company

on

March 15,

declared

of

J.
of

San

formerly with
Company.

was

HERVEY

holders of record at the close'of business

Twenty-five

891

■A*

business

JOHN W.

5,

COMPANY

NO.

891

has

declared Dividend
10

incssu cen»oiMino»-

Tennessee:

HAMILTON, Secretary.

sf
On

February 24,

433,4
were

v

1954,

quarterly

dividends of

per share
on
the Preferred
cents per share on the Common

declared,
of

March

8,

payable

record

April

at

1954,

1,

the

February 16, 1954

COMPANY

cents
40

holders

19£4h

HELME

Rockefeller Plaza, New York, N. Y.

and

close of

W.

close

Stock

Stock

to stock¬

of

business

1954.

fifty (5jt)£)
share has been.de'
clared payable March >29,
A dividend of

cents per

Secretary

F.

McCAULEY, Secretary.

1954,

at

Company have declared quarterly

CENTS

on

on

3

Company

March 15,

One Wall

—

GERARD

J. EGER, Secretary

A

declared

dend

ALLEN B. DU MONT

the

of 30

1954,
at

The Board of Directors of Allen
B. Du Mont
this

dividend
its out¬

a

share

per

on

per

York, N. Y., February

18,

1954.

g.

Ihe annual meeting of

sto^hbldeifs^ilf be
heldMtm-W-edriesday, April 21, 1954,
o'clock a.m.,

11:0.0

at

Avenue, Flemington,

County, New Jersey*.
Only
the

stockholders

close' of

43

at

Park

UTILITIES
COMPANY

payable April 1,
the close

at

15:

1954?:

vote

at

any

to

'

March

L I B E R T Y

business

at

said meeting, notwithstand¬
subsequent transfers of stock.

Board

declared

a

per

'

Farmingdale, New York

The Board of Directors of

the

(25c)

per

share

Stock

Preferred

payable

both
1954,

25,

on

this

of

to

NOTICE

stock¬

Directors today

of

dividend of 52 cents

of

March

business

1954.

15,

on

*

1,

March 3, 1954.

Corporation declared
regular quarterly dividend of
Twenty-five Cents (2 5 ) per share
on
its common stock, payable

JOHN
4

>

HUME

Secretary

February 19, 1954.

1954 to stockholders
t<bf record at the close of business
March 31,

>CHEMICALS

A1**

~

ortrMarch 17,

Southern

1954.

California

TEXTILES

William G. Holman
PLASTICS

Treasurer

<(

Edison

Pullman

Company

DIVIDENDS

'

A dividend

(15^)

per

of fifteen cents

share

on

the Com-

Stock of this Corpora-

If
S.

Avenue, New York 16, N. Y.

1 MERCK & CO., INC.

tion

was

March

16,

1954, to

share¬

A. WEDEMEYER

of 20tf

|

quarter of $1.12)4
payable April 1, 1954,

current

holders of record at the close

March 5

ness

per

the

to
of busi¬

1954

The

February 19, 1934

of record

the

quarter o/$l.75 per

at

ferred

share

close of business

the

American frif ciyar




25

cents

per

STOCK

^

of

i

DIVIDEND

NO.

1^9

second

at

five

cents

share will be

paid

(75^)
on

per

March

1954.

President

on

been

of the
following quarterly dividends:
50 cents per share on
inal Preferred Stock;
27 cents per

1954. Checks will be mailed,

1,

from the Company's office in
Los Angeles, March 31, 1954.

the close of business March

February 23,1954

1

pay¬

de¬

April

p. c.

hale,

February 19,1954

John H. Gage,
'►

are

able March 31, 1954, to stock¬
of record March 5,

holders

12, 1954.

R. O. GILBERT
1
Secretary

Orig¬

share on Cumu¬
Stock, 4.32%

The above dividends

the $4.25 second pre¬
have

authorized the payment

Series.

CHAMP CARRY

payable

The Board of Directors has

lative Preferred

a

stock

DIVIDEND NO. 28

ord February 26,

pre¬

$1.06 34

regular quarterly dividend of

4.32% SERIES

13, 1954 to stockholders of rec¬

the

on

predecessor companies

seventy

on

preferred

share

and

A

stock,

1954 to stockholders of record

share payable Match
the

February 23, 1954.

on

clared,

24, 1954. to holders of record at
close of business March 5, 1954.
)

stock,

ferred

COMMON

a

$4.00 convertible

regu.ar

current

$1.00

stock,

March 5, 1954.

PHILLIES

Year

Dividends

Cash

on

share

a

the $3.50 cumulative

7% SECOND PREFERRED STOCK

Philadelphia, Pa.

||

share

a

common

87V2^

quarterly dividend for
share,
payable April 1, 1954, to holders

TREASURER

Consecutive

paid by Pullman Incorporated
and

regu'ar quarterly dividend for

share.1

|jj

88th

Quarterly

Quarterly dividends

the

holders of record March 1,
1954. Checks will be mailed.

THFBoardofDirectorshasthisday
declared the following dividends:
The

declared payable

\

RAHWAY, N. J.

4Vs% PREFERRED STOCK.SERIES A

mon

ORIGINAL PREFERRED STOCK

CUMULATIVE PREFERRED STOCK

CORPORATION OF AMERICA
180 Madison

jl

Incorporated

CELANESE

p

-

payable

1954 to stockholders

Products

Secretary

'

the Common Stock

Company,

of record at the close of business

Liberty

the

Company

L

NORMAN TISHMAN, President

fwwww* mm

April

February 23, 1954

In All Phases of Television

share

of

The stock transfer books will not

DOUGLAS TTORTON.

regular

a

.

be closed.
The Borden

the Com¬

on

and

'

oiiMom

on

The

PRO DUC T S

Treasurer

CORPORATION
record

share

holders of record at the close

,

,

of

five cents

the

March
DIVIDEND

Paul Raibourn,

1954

de¬

of thirty-five cents

per

corporation,

Pre¬

record

of

of business

' *

February 18,

Hunterdon

Friday,
March 5, 1954, will be entitled to
ing

1954

Stockholders

ferred

(

quarterly

quarterly dividend of twenty-

kent, Secretary

tive Convertible Preferred Stock
..

Directors

regular

a

Stock

mon

stephen

of

Board

(35c)

of $.25 per share on
standing shares of 5% Cumula¬

Annual, Meeting,

DIVIDEND NOTICE * \

.

The

dividend

stockholders of record

the close of business March 2,

f

CONSTRUCTION CO JNC

clared

$10, payable April 1,

par

to

New

($.75)

1954.

Laboratories, Inc.,

day has declared

cents

divi¬

capital stock of this Com¬

pany,

LABORATORIES, INC.

quarterly

a

■

Seventy-five

of

DIVIDEND

share on the Common Stock
of
this
Company has been declared payable
at the Treasurer's. Office,
No. 165. Broadway,
New York 6, N. Y., on-March 22, 1954, to stock¬
holders
of
record
at
the
close r of
business
Marph 1, 1954.
*
"
E. J. GOODWIN, Treasurer.

The Board of Directors has this

Treasurer

H. T. McMeekin,

QUARTERLY

Cents

day

p-i,-,

.

TISHMAN REALTY &

DIVIDEND NO. 145

February 18, 1954

the close of busi¬

March 15, 1954.

,

1.
d

SOUTHERN PACIFIC COMPANY

Street, New York

year—to share owners

of record at
ness

the close of business

1954.

quarter

31, 1954—for the first
of this

at

n.

Y.

Irving Trust

share on the common stock payable
Apfil 15,1954, to stockholders of record

a

WurC

Broadway

New York 6, N.

fifty cents (50fi)

be paid on March

will

share

61

per

regular quarterly dividend
TWENTY-FIVE

John G. Green buKghJ

/

The Directors of International Harvest¬

156 of

the close of busi'

March 3, 1954.

ness

COMPANY
VI

stockholders1 of

to

record

J.

HARVESTER

No.

i-

■

W

1954.

GEORGE

today by

the

at

March 2,

on

a

Corporation, pay¬

ROBERT C SULLIVAN,

dividend

j>

Secretary

of forty cents

February

29, 1954, to stock¬

of record

INTERNATIONAL

($1.25)

cents

declared

March

on

holders

er

t

*

B. H. winham

One Dollar

distribution of

cash

and

able

of

March 10, 1954.

on

($.40) per share of $12.50
par
value Capital Stock,
payable March
12,
1954, to stockholders of record March 2, 1954.
Checks will be mailed by Irving Trust Com¬
pany, Dividends Disbursing Agent.

February 19,1954

«

Kenn ecott Cop per

MACHINE AND

share r,

per

theCorpbfa-r

tion, payable April 1, 1954, to stocks.

Corporation
A

Sec'y.

;av

^AMERICAN

No.

Street, New York, N.Y.

i;

share has been

41st Dividend

(31J4<)

cents

the Common Stock of

on

NOTICES

The Board of Directors

CORPORATION
161 East 42d

J. OSBORN

Exec. Vice Pres. &

mm

DIVIDEND

KENNECOTT COPPER

Company will not be closed.

Hilyard, Treasurer

NOTICES

DIVIDEND

The stock transfer books of the

February 23, 1954

A

dividend of thirty-one '4nd *

a

one-quarter

jr.-

HOMESTAKE MINING

1954.

at

'

r

The Board of Directors has this date

Richard

—

joined

E. F* Hutton &

close

record

of business

METALS, INC.

LOUISIANA

Dividend Notice

(Special to The Financial Chronicle)

securities

GAS

CORPORATION

■t
•'

J. Gilbert

a

UNITED

formerly

Mathews Co.

the

on

payable April 1, 1954, to stock¬

10, 1954.- Checks will be mailed.
Harry L.

manager

R. Seel

with

CENTS "

of FIFTY

dividend

share has been declared

March

business

engaging in

DIVIDEND

capital stock of this Company,

Tobacco Company, payable in cash on

record

affiliated

With Jamieson & Co.

—

NOTICES

February 24, 1954

quarterly dividend of 1 J4% ($1.50

»

office

*

business from offices at 157 Broad

DIVIDEND NO. 159

A

•

Street.

company

Y.

'

*

-

BANK, N. J.

Currie is

New York 3, N.

many

with Talcott, Potter &

become

mer, Pollacchi & Co.,
Street.
Miss, Seel was

Gilbert Currie Opens

NOTICES

RED

111 Fifth Avenue

for

has

;

J.

NOTICES

Rich

Mr.

BOSTON, Mass.—Anna

F.

Co., 135 South La

-

DIVIDEND

Kenneth

—

DIVIDEND

Palmer, Pollacchi

(Special to The Financial Chronicle)

Co.

west Stock Exchanges.

With

:

become associated with

has

Salle

Salle

La

of the New

bers

Arthur

—

has been added to

Jr.

Fahnestock

(Special to The Financial Chronicle)

•

(Special to The Financial Chronicle)

Calif.

FRANCISCO,

Arthur

Rich with

Bacon, Whipple Adds

Formed

(Special to The Financial Chronicle)

Treasurer

(L

Treasurer

The Commercial and Financial Chronicle
44

...

(92 )

Thursday, February 25, 1954

in air mail rates. The proposed

BUSINESS BUZZ

bulk

mailing rate increase is so

rigged, it is said, as to be un¬

on...

likely

from the Nation's

addi¬

y*

JL \J V%r

jljLI l/lt/

Capital

where

any

million of

$50

tional revenues claimed for it.

A

Behind-the-Scene Interpretation!

in

being

to
the

near

Dead

Commission

Manion

Eisenhower

President

When

decided to commit himself gen¬

WASHINGTON, D. C. —
Whether he intended to do so
mate¬

Eisenhower

rially aided the prospect for
Congressional enactment of pro¬

posals to boost the personal ex¬
emption by not less than $100
under the personal income tax.

conference state¬

In his press

that he

ment the President said

to give in¬
dividuals tax relief should there

would

be

employment

in

upturn

figures in March.
As the President

phrased his

such
relief could,
of
course, take the form of either
the excise tax relief House lead¬
•words,

talking,

are

ers

sonal

the reported

or

in the rates of per-

cut of 5%
.

which it

tax,

income

those

understood

also

leaders

same

The

planning.

were

hand, the Presi¬

On the other

to be in¬

statement has

in the
light of circumstances. The per¬
sonal income tax relief most
Congress

by

terpreted

regarded as likely in
the
Administration gets

widely
case

of

frightened

set¬

business

a

boost in personal
Another circum-

the

is

back,

exemptions.

jstance is that the very purpose

reported leadership plan

of the

the Ad¬

should

Incidentally,

OK

personal exemptions, Con¬
in all likelihood prob¬
ably would make it effective
as of the first of the month fol¬

it

President's remarks,

the

employment
were
to
dramatic upturn — no

unless

show

a

M

the Hill

on

men

100,000

to

50,000

mere

believed,

is

as

a

—

the

himself

to

boost

a

in the

per¬

sonal exemptions.

So unless there is a dramatic

employment
in
March, the President may have
paved the way for making obsolete by Feb. 17 the budget picture he presented Jan. 21.
upswing

*

takes
an

question is expected

later:

arise

If

the President

position that barring

the

upswing in employment, tax

relief is necessary, how far can
he

forces

Administration

and

of creating

the Manion Commission.

the maximum
required terms of FHA and VA
mortgage loans.

quence

ately

relief

well?

as

With the

Manion,

loosen

to

One of the main

that

be

an

"Sorry,

home-

believed

ent

government

sponsored

-

credit, in that industry's opin¬

The

industry wants Congress to ease
terms

right away.
smooth

the

for

way

pas¬

has
been passed out that the Presi¬
dent will move promptly to lib¬
eralize
government - sponsored
bill, the word

of this

sage

mortgage credit

terms.

He will not liberalize

them, it

said, any where near as far
he can under the act.
The

is
as

act

provides"

set of maxi¬

a new

ommendations

ing, will not block

1949

Housing

Act

Congressional

funds

than approved

1955

thorized

funds

start

to

for

a

long

sible

units
years

track, this may take the pres¬
sure of the left-wing groups off
the ambition of the' Administra¬
tion and the GOP

Majority

on

Committee
give investors and business

the Ways and Means
to

tax incentives.

some

So

the Administra¬
taking the position that

long

as

tion

was

the

lapsing of the second

1951
personal income tax boost and

the

tax

bill

revision

"was

"balanced tax
program," left-wingers were
making passes at the revision
bill with its beginning toward
enough"

relief

on

and

because

better
C

If

break

the

nally

to

danger of
mands

xelief, in

beginning toward
on depreciation.

resolve
a

that

to

but

vary

allows
the

the

amount

according

down

and

up

to

a

formula.)

is

Indo-China's

there

ah

ally

business tax
the

re¬

would seem to lose




is disposed

nothing
House

with South¬
as

can

falls, then prob¬

not

it

jected

to

the inclusion

of this

new

Ad¬

dicate
Red

is

area

as

a

exports

China.

and

does

do

the

unless

the bill. If the
the

approve

bill,

probably

that

as

a

of

source

leaders,

the

are

said to

opening

would

not

in¬

of

up

less
is

increase

White

the

by

more

to

than

in

and

the

clear

House

in general

applied

order

In

new

to

to

get

support

consented

to

the

new

bill

as

Speculative and Flight Movements
of

Bloomfield

sity

Arthur I.

J.

N.

Princeton,

(paper), $1.

i

Monopoly:

Its

Cause

and

Watts—Foun¬

Orval

dation for Social

Research, 1521

un¬

Wilshire Boulevard, Los Ange¬

les
the

upon

17,

California

(paper),

$1;

(cloth), $2.

particular

upon

.

two-thirds

Almost

tual

realizable

will

ever,

posed

come

new

rate

the

ac¬

how¬

from the

4-cent
and

of the

revenue,

pro¬

WE WILL BUY

—

American Felt Pfd.

out-of-town
American Piano A &
penny

B

rise
Dejonge 2nd Pfd.

Louis

*

Dejonge Com.

George E. Keith Pfds.

s*c^s

Knothe

Bros. Pfds.

John Irving Shoe

Pfd.

Robertson Electric Com.

Carl Marks

&

Co. Inc.

FOREIGN

SECURITIES

50 BROAD STREET

TEL:

HANOVER 2-0050

Tejon Ranch

—

4

the

•

SPECIALISTS

NEW YORK 4, N. Y.

TELETYPE NY 1-971

LERNER & CO.
Investment

because

leave this section

Securities

10 Post Office Square,
Telephone

hand,

—

Princeton Univer¬

—

Press,

In¬

Postwar

in

Capital

ternational Finance

Louis

"redundant," the

other

he agreed to

N. Y. (paper), single copy

son,

Detroit & Mackinac Rwy. Com.

units already.
the

Irvington-on-Hud-

pressure

for

present act authorizing 135,000

On

cation, Inc.,

Robertson Electric Pfd.

bill, the President is

have

Edu¬

Foundation for Economic

them.

letter

exports

L. Poirot—

Public Housing—Paul

do

however,

likely

appear

House

Communist

than

J.

be induced to act.

rate rise for action until and

currently far

market for Japa¬

Studies

China

Japan's

Committee

ministration housing bill.

this

Princeton

(cloth), $5.

Cure—V.

important

more

Senate

until

House

housing foes ob¬

recommendation in the

—

University Press, Princeton, N.

Union

ably all of Southeast Asia will
This

not

may

for four years, or 140,000
Public

Burns

free; quantity prices on request.

the Senate Committee

.

If Indo-China

fall.

having

to sit back and

approves

House

abso¬

i&

the .West,

of

elimination of this section from

is

So far the

why

against

the Reds is regarded as impor¬

as

thing which

a

be

may

bag,

cal blame back home.

10%.

units.

F.

—Arthur

i

reasons

Asia, is regarded

they

the

and thereby getting politi¬

pass,

Is

defense

tant is that it, along

holding

voted for

Japan

to

fear

they

cause

left

such agreement.

any

a

fi¬

housing

public

many

unhappy in part be¬

are

Mr. Eisenhower wanted a new

year

Knowledge

Frontiers of Economic

un¬

authorization of 35,000 units per

said

set-back which de¬
relief,

other words,

vision bill,

President

of dividends

Administration

tax

annually

135,000

though

even

said to be most

are

They

opponents were not involved in

a

taxation

and with its

units

for

and

•

35,000 unit program, however,

nese

funds

increase

this

lutely vital to Japan's survival

Two

Bookshelf

The
were

happy about their action.

a

fiscal

35,000

members

rent level. It does not guarantee

for

au¬

bill.

increase

rate

a

"under the whip" have reported

or

east

authorized

act

(The

Man's

or¬

out

15,000 units more than the cur¬

20,000 units for the current year.

clear

the

political

reported

it out,

IF substantial relief to in¬

given

Business

personally unwilling to vote for

will go

35,000 unit program,

food and

is

postal

toward making pos¬

way

a

25,000 units, and last year, for

dividuals

ganizations,

majority of the

more

Congress

appropriated

it

views.)

own

pres¬

applied by the Administra¬

tion through state

of

of

since three

public housing.

ago

sure

units

35,000

This private assurance

explained.

funds

rec¬

public housing in fiscal 1955.

One of the basic

years ago.

Three years ago

Committee, under terrific

hous¬

new

"public

as

assured

is

past

the

"Chronicle's"

A reluctant House Post Office

request for

a

Indo-China

housing legislation is that what
is now legally known under the

housing,"

in

public

on

Important

the

of

facet

which

has cut down White House

Public Housing Assured
Another

purposes

report.

First Class Rates

as¬

that the Appropriations

Committee,

levels.

maximum

and

surances

President's

The

terms.

practical

•

.

objection and to

To meet this

all

to

Key to Postal Rate Rise Is

President is
received

have

to

Finally, there may be a fur¬
development arising from
the new Administration's posi¬
tion.

the

the

building industry is that pres¬

of

ther

Giltedge—but—er—on my salary these
only evening clothes I can afford!"

Mr.

are

out of the bill, the

the

of

objection

in

flect the "behind the scene" inter¬
pretation from the nation's Capital
and may or may not coincide with

outlook necessitated a steaming

An

thus

(This column is intended to re¬

it terms if he felt the business

of the housing boom.

This

on.

before it made a

could liberalize the easier cred¬

up

carried

obsolescent stage to be killed

off

President

the

conse¬

becomes the first commission

President
would

practical

is the death of this Com¬

is

pose

put into effect until the
so directed.
The idea

not be

resignation of Dean

the

mission, even if its alleged pur¬

phases of this

legislation is that a new set of
more liberal government-spon¬
sored
mortgage
credit terms
shall be legislated, but would

hold the line against a pell mell
rush to vote other forms of tax

powers

just about as soon as the
ink is dry on the Administra¬
tion's new housing bill, that the
White House will act immedi¬
that

in

Another
to

against
to the

or

which was

action, it is said, will strike a
balance between the minimum

Obsolete

of

return

shrinking

any

powers,

the primary purpose

mum

Makes Budget

against

states—the study of

not too quietly,
passed around

Quietly, but

matter of

practical politics would say that
the
President had committed

the

the word is being

help

Furthermore,

an

of follow the leader

Federal

any

Mortgage Terms

Ease

personal exemptions.

tax rates and the

under

also stood

to

powers.

with

pre-occupation

world game

of

ion, is not liberal enough.

a

come

His

Federal

of

expansion

enactment of the

lowing final
legislation.

himself

committed

also

gress

5% drop in personal in¬
limiting
of excise taxes to 10% rates,
was to head off a boost in the

for

he pretty generally

the masses,

in

cut

a

the

is

President did not specify.

dent's

health, welfare, and income of

ministration ever

Would

of the

erally to the protection

political

possible

quickly

act

no

its

of

vulnerability.

but

remains to be seen,

not

or

President

little

a

3

HUbbard 2-1990

Boston 9, Mass.
Teletype
BS 69