Full text of Commercial and Financial Chronicle : February 26, 1953, Vol. 177, No. 5198

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university
of
Michigan

Ft 8 27 laS3

ESTABLISHED 1S39

Reg. U. S. Pat. Office

Volume 177

Number 5198

New York 7, N. Y.,

Thursday, February 26, 1953

Price 40 Cents

Copy

a

EDITORIAL

What's Wrong With Our

We See It

As

Foreign Trade Policies? Of Liberty and Free Economy

It has
to

apparently remained for Senator Douglas
get down to brass tacks in this endless talk

By EUGENE S. GREGG*

By HON. ROBERT A. TAFT*

Vice-President, Westrex Corporation

U. S. Senator from Ohio

,

about the role of the
next four years or

Our Problem—Preservation

opposition party during the
so. This distinguished Senator

'

«

Chairman, United States Council, International

.

is not

wholly free from the twaddle th^t all too
discussions, but before
he was through with an extended
analysis of
these questions in the New York "Times" last
Sunday he got to the heart of certain aspects of
current politics which
ordinarily are left unsung
when party leaders take the rostrum.

Asserting "a time of change is here," and nation should

often characterizes these

The
servers

he says

a

sort of "me-too-ism" in

currency, Mr. Gregg sees something
policy which uses the $30 billion postwar
export surplus as gifts abroad paid for by American tax¬
payers. Says we should do everything possible to restore
convertibility of world currencies, and proposes U. S. set
up a large fund of at least $10 billion and reduce tariffs

make the

to

Democratic party a

kind of
of the GOP." "This," he
adds, "would not only lose us the loyalty and
following of millions who even in defeat honor

for all voters and stimulate the formation of

so '

Some
mention

new

false

the

that

they will
include the

will

by

executive

the

cerned. and to the

ternal balance of

interesting time in Washington since

an

but

we

period.

have not yet even completed
It is too "

*

S.

Eugene

and

of

the

issues

the

a

Gregg

country's

i

ex¬

tried, the almost inevitable result has been that the

address

ISSUE

THIS

—

Candid

formation/

Few

realize

extraordinary difficulty of the job

be done in taking over a govern¬
ment with more than two and a half
million employees, many of whom
have come to think in a manner

on

45

page

,

♦An

of

Institute

23.

Municipal
.Ir

i

■

.

Oil & Gas
in the Rockies

^

■'

Learn, what noted geologist Dorsey

Hager thinks of the oil and gas pros¬

Dean Witter
14 Wall

THE NATIONAL CITY BANK

and Security Exchanges

Los Angeles •

•

Boston

•

Chicago

Honolulu

>

Members

New

American

York
Stock

CANADIAN

Central Maine

SECURITIES

Exchange

BONDS & STOCKS

Power Co.

Exchange

Commodity Exchange, Inc.
on

Request

Net

New York

COMMON

Markets Maintained

To Dealers, Brokers and Banks

»

Analysis
60

Hardy & Co.
Members New

Members

York Stock

Exchange

American Stock

Broadway, New York 4, N. Y.

Telephone WHitiehall 4-6500
Teletype NY 1-1343

CANADIAN

DEPARTMENT

Goodbody

&

Co.

Domdoon Securities
Grporatioji

ESTABLISHED 1891

30 Broad St.

New York 4
Tele. NY 1 -733




BRIDGEPORT

PERTH AMBOY

115 BROADWAY
NEW YORK

t

49 Exchange Place,

New York Stock Exchange■
and other Principal Exchanges'

111 Broadway, N. Y.

New York 3, N.Y«

NORTH LA SALLE ST.
CHICAGO

WOrth 4-6000

Teletype NY 1-702-3

WHitehall 4-8161

request

IRA HAUPT & Ca
t

MEMBERS NEW YORK STOCK EXCH.

upon

Members

Exchange

TeL Dig by 4-7800

YQRK

NEW YORK CITY

CANADIAN

1832

Stock

OF THE CITY OF NEW

Members New York Stock Exchange

T. L. WATSON &. CO.
ESTABLISHED

NATIONAL BANK.

Est. 1915-

50 BROADWAY,

Pacific

THE CHASE

J.A.HOGLE&CO
Bond Dept. Teletype: NY 1-708

Department

Free

OF NEW YORK

of Principal Commodity

San Francisco

Bond

in the Rocky Mountain region.
copies of this fact-filled, on-thespot report are now available.
Write or phone lor your Free copy.
pects

Co.

&

Street, New York, N. Y.

Members

BOND DEPARTMENT

Circular

39

Associa¬

Pacific Coast &

Chemical

Bonds

on page

State and

Direct Private Wires

Missouri

Continued

address

shots taken at the Annual Mid-Winter Dinner of

HAnover 2-3700

50: BROAD ST., N.Y.

Taft

A.

by Sen. Taft before the National Canner's
tion, Chicago, 111., Feb. 21, 1963..

Hawaiian Securities

COMPANY

■

Robert

l).,S. Government,

BANK & TRUST

■

taken hold of the problem and it is
approaching with courageLand deter-; '
mination the tremendous
job of cutting down the size
and power of this
sprawling Federal Government.
Today, therefore, I do not intend to talk about an#

in

telephone:

'

ASSOCIATION OF PHILADELPHIA appear ill the

Pictorial Section starting on page

DEALERS

Securities

pro¬

Administration, both
legislative, is still in

of 1933, the last time there was a
fundamental change of control. But
the Eisenhower Administration has

Whenever this theory has

Continued

IN

of

The government is 10 times the size

by Mr. Gregg before the Rochester
International Affairs, Rochester, N. Y., Feb. 18, 1953.

36

detail

contrary to what I happen to be¬
lieve, or small businessmen believe.

improvement of such
payments.

in

,

been

the INVESTMENT TRADERS

Municipal

?

to

groups: within

which has been
widely accepted is the Keynesian
doctrine that a country's currency
can be
cut loose from gold and be
managed by a small group of bright
men to the good of the country con¬

*An

State and

why
people with

sympathies.

arisen, because
the

of

piocess

being, as well as
position. This
unfortunately is still

certain

talk

have

gram

well

doctrine

to

soon

RpfF unworkable.

fallacies

this country.
Another fallacy

analysis of certain current aspects of party gov¬
ernment in this country which follows. "We must,
however, face the fact," he says, "that the Demo¬
cratic party is as divided on domestic
policy as
are the. Republicans on
foreign affairs. North of
the Masop and Dixon line, we are progressives.
In the Shuth, with the exception of Alabama, the
party is largely dominated by the wealthy manu¬
facturers, bankers and planters whose economic

PICTURES

We have had

New Year's Day,
the organization

its international trade

believed

page

unsound

of

its economic

choice

But the Senator redeems himself in the frank

on

communist

probably
widely held idea of nationalism, or
that. a nation can be self-sufficient
and by self-sufficiency can improve

time."

Continued

,

affirmative
justice. De¬

many cases,

the government should continue to
employ

One hundred

were

between two conservative political parties, they
every

;
:

.

progressive traditions of the party, but
ft would! also narrow the range of political choice

Republicans

exchange.

years from now, historians will probably
why we, in the second quarter of the 20th cen¬
tury, followed so many ideas which
;
.

holds, in

,?

government action is necessary to preserve
fends labor laws, but deplores
price and wage regular
tions and "government in business." Sees no reason

wonder

the great,

will choose the

achieve free international

Decries laissez faire and

It has been said the only thing we learn from
history
is that we do not learn from
history.

conservative carbon copy

a

our

when

reverse

splinter parties. If the voters have only

in

wrong

that the party must resist "the drive of

to

orthodox and tried theories in field of

more

foreign trade and

Senator, to the amusement of some ob¬
doubtless, seems at one point to be a little

fearful of

some

shift back to

,

Republican Senate Leader, in stressing maintenance of
personal liberty as a guiding principle, warns against
concentration of power in government and a condition
of perpetual war which threatens nation's
independence.
Says we could destroy our liberty and the free economic
system by excessive military and foreign expenditure.

Chamber of Commerce

:

Boston

S

Teletype NY, 1-2708

-

Telephone:

Enterprise 1820,

VTI2*3

£&l '.'
2

VJtjU

& -'

~

The Commercial and Financial Chxonicle

(886)

,

WtfiU

The

POSITION and

WE

TRADE

IN

Security I Like Best

This

Forum

A continuous forum in which, each week,

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

in the investment and

Power

Consumers

Thursday, February 26, 1953

...

participate and give their

Hooker Electrochemical

for favoring

reasons

Their

particular security

a

they to be regarded,

are

Louisville Gas & Electric

intended

be, nor
offer to sell the securities discussed.)

as an

not

are

Selections

Alabama &

,

Phillips Petroleum Co.—J. Walter

Leason,
(The articles contained in this forum

$4.20 Preferred

Week's

Participants, and

to

Manager

of

Louisiana Securities

Research

^

|fcr

Dept., Shields & Co:, New York
City. (Page 2).

Bought—Sold—Quoted
South Carolina Electric & Gas

J. WALTER LEASON

Rights & Common

Manager, Research Department,
Shields & Company, New York City

10,000

Members New York Stock Exchange

These

are

sures

ever

Colorado Interstate Gas
Phillips Petroleum Company
Although

Natural Gas & Oil

Southern Union Gas

i

n o m

Taylor Oil & Gas

there

end

trolled

Established

e x

1920

d i

Associate Member

t i

Stock' Exchange

American

ficult

Teletype NY 1-583

to

n e

In

Specialists in

such

one

J.

that

company

to*

seems

New Products and Diversification

American Stock Exchange

REctor

YORK

2-7815

Furniture

six

N

activities

into

requirements

and

which

Phil¬

include

industrial

ventures

fertilizers

Dan River Mills

for

thetic

Life Insurance Co. of Va.

such

nitrogen

as

agriculture;

rubber

and

syn¬

Philblack

for

automotive

STRADER,TAYLOR&CO.,lnc
•

be calculated

to

_

TWX LY 77

as

I

$800
8

million.

The

trillion, cubic

this

year, at
worth value

$600

feet

travel; cyelohexane,
vinylpyradine and other chemicals

of

six

add

cents

the

MUNICIPAL BONDS

Phillips
sales and

by oil

The year

is known for its large
of natural gas.

has been the out¬

1952

in

year

all

of

Phillips

,

underground
Whereas approximately 77%

discoveries

serve

York

Louisiana

fields

new

west

Texas

Basin

of

in

area,

Gulf

the

the

Coast,

Chocolate

Basin, Pecos County
in

and

the

Arizona,

New

York

New

Exchange

Exchange,
Board

Orleans
And

Exchange

Cotton

Commodity
Chicago

Exchange

Stock

American

m

Stock

of

Cotton

other

Inc.
Trade

Exchange

Exchanges

The

four

New

the

San

state

Mexico,

Juan

have

Exchange Btdg.

NEW YORK 4, N. Y.
CHICAGO

DETROIT

PITTSBURGH

GENEVA. SWITZERLAND




Telephone
HA 2-3878

a

in

area

Colorado

of

which

sedimentary deposits

thus

far

14

different

fields in various strata have been
found. During the second quarter
of

1952, the
new

announced

company

find at

12,800 feet in the

Andrau

Sands

pressures

running

with
as

enormous

high

pounds per square inch.
serves

mated

from this level
at

cubic feet.

better

than

Recently

a

as

8.600

The

were

2

re¬

esti¬

Teletype
NY 1*2976

80

o n

for¬

and

nine

of

con¬

result of this expansion the

smaller'concerns.

pany's activities

Commonwealth
Oil

Company

As

Common Stock

a

com¬

divided into

are

-

Bought—Sold—Quoted

following four divisions:

(1)

11.8

Phillips

Petroleum

be viewed

can

the

times

current

1952

as

fully

market* at

earnings of $5.17

Machinery,

which

old established

ery

and sewing equipment.

General

(2)

takes

charge

tobacco, bak»

newly

of

the

company.

current return

The

the

on

$2.60
dividend (recently increased) also
precludes purchase by those to
current

portant

income

is

consideration.

an

im¬

However,

the current price does not appear
to
take into account
the
enor¬

mously

valuable

discoveries

of

natural gas recently made and it
is inevitable that these discoveries

increase the

to

us

assume

over

a

that

sale

the

uncom¬

of

333

billion

cubic feet annually which at 15c
amounts to additional revenues of

$50,000,000.

Lifting

and

for

work.

.

Military

ac¬

contracts

were

about 50% of 1952 total sales. "The

outlook

for

increase

further

government

business is very

couraging.

Gordon Graves & Co.
30

Broad

Street, New York 4

Telephone

Teletype

WHitehall 3-2840

NY 1-809

in

Backlog

contracts is in the

request

defense

government

en¬

of defense
neighborhood of

410

Pan American Bank
Miami

Bldg.

32, Florida

$100,000,000.

Among

the

products

added

to

vices and ultrasonic equipment for

purposes,

30-year period. This would
the

•

-

of

power

mitted 10 trillion cubic feet of gas
were to
be sold at 15c per mcf.

involve

•*

substantially.

Purely for illustrative
let

i,

,

engineering

manufacturing, which largely
counts

on

acquired

the company's broadening line of
operations during the past few
years are: Electronic training de¬

earning

Petroleum

Contract

(4)

Prospectus

which

products,

of

(3) Electronics.

nothing but mathematical rela¬
tionships not indicating the future

handles

the

and 6.1 times estimated cash flow
-items.
income of $10 per share, these are

Phillips

discovery in the Chocolate

series

9

sup¬

been

yet

of .should be sufficient in the future

Bayou Field is tremendous. It is

a

N. Y. Cotton

t i

a

r

Conclusion

Although

whom

shore

and Utah.
New

iz

Broad Street

50

New York 4, N. Y.

or-

bakery indus¬
tries,
to
one

of

the

potential

the Delaware

Members

an

tobacco
Henry J. Low

,

arrangements.

4.3%

two

i

g a n

estimated

value

of gas reserves. The most im¬
portant
reserves
recently
dis¬
covered have been those in the

Bayou Field of Texas, the Gjenna
discovery in the southern end of

JH. Hentz & Co.

recent years

from

Request

J. V. MANGANARO CO.

of

scope

merly

Petroleum history for the discov¬

on

1856

Best."

company

has expanded

the

on

plied only the

Louisiana Gulf Tidelands

Established

The

Memo

I

to have added 5 to 6 trillion cubic

stock at 61

ery
-

Like

feet of gas reserves which is equal
to $20 to $25 a share of additional'

companies

Phillips' size.

reserves

standing

RH 83 & 84

"Security

which

priced in

Telephone 3-9137

my
choice for the

the last six months

tract

Recent Discoveries of Natural Gas

RICHMOND, VIRGINIA

Recapitalization Plan

ma¬

$480,000,000 of value which would
be
equivalent to approximately
a share of presently outstand¬
ing stock. The discoveries of just

icant that the estimated $185,000,000
spent
in
1952
rivals
the

spent

Tel. NY 1-1932

chinery, is

would

made the basis of substantial

signif¬

Dealers Assn.

Maw York 1

COMPANY

electronic

industrial

approximately

are

.

BALTIMORE TRANSIT

.

CAROLINA

Bell System Teletype:

and

Security

Foundry

its business in

more

several times

CRAIGIE&CO.

automatic

to

.

■F. W.-

&

natural gas reserves were dedi¬ that includes:the manufacturing of
promising types of cated at the end of 1949, it is esti¬ a wide range of essential metal
synthetic fibers; jet: and conven¬ mated that oply .50% of the natural products suitable for mass produc¬
tional fuels for commercial and gas reserves of Phillips Petroleum tion
and
volume
sales. •
This
military aviation; sulphur for fer¬ are now .dedicated to- contracts change was accomplished in the
tilizers and chemical processing; since none of the new gas re¬ last four years through acquisition

for

amounts

NORTH and SOUTH

cialized

Y.

Exchange

a leading manufacturer
widely diversified line of spe¬

a

discovered

ital expenditures and it is

VIRGINIA-WEST VIRGINIA

Machine

N.

Broadway

Tel. DIgby 9-1550

Foundry Co.

approximately

and
even
atomic energy. These
activities require tremendous cap¬

Specialists in

&

minimum present

a

therefore

of

Gebstex & fbenkhl
ISO

Stock

York

this basis

on

value

a

next "

Company,
of

dis¬

covered would be worth $60 to $80
million. The 10 trillion cubic feet

have

Machine

American

trillion cubic

discovered since 1949

New

American

from

reserves

Film "A"

Members

Members

mcf.

General Aniline &

earn¬

the

Manager, Research Department,
Bruns, Nordeman & Co., N. Y. City

for
per

per

eight cents

an

within

$33

lips has gone recently meet these

Commonwealth Natural Gat

Lynchburg, Va.

may

cents

share

a

ob¬

20c

Common

equivalent to $9.00 to

HENRY J. LOW

the present

feet,

would

The

Since 1932

to

Foote Mineral

of

five years.

out¬

readily

15c

On this basis, every
feet
of additional

growth.

Camp Manufacturing

*

has

and

contracts

new

at

gas

thinks of new products
they have in mind a combination
of requirements that the end prod¬
uct deal with petroleum raw ma¬
terials or relate to the energy bus¬

show promise of substantial future

Bassett Furniture Industries

LD 39

be

can

With

ground

that the project involve
difficult technology in which com¬
petition
might
be
discouraged;
that the products cater to mass[
consumption to derive benefits'
from large scale processing; and
that the demand indicated shallt

5

Trading Interest In

American

power

iness;

-

New York Stock Exchange

Tel.

difficult to envision

ing

shares

offices

1952

not

of

branch

our

earn¬

presently
reserves in

re¬

company

wires to

Phillips various other activ¬
Everything considered, it is

$10.00

NY 1-1557

OrIeans,La.- Birmingham, Ala.
Mobile, Ala.

Direct

earnings and does
not reflect the earning power be¬
yond this which will be derived

trilliorn ities.

8

to

Exchange

Exchange

St., New York4, N. Y.

HAnover 2-0700

New

in

Phillips Petrol¬

number

thousand- cubic

agement

NEW

7

Stock

Stock

the life of

over

inherent

power

estimated

26 trillion

or

the income

owned and proven gas
itself amounts to close to 40%

worth value of natural gas in the

McDonnell & Co.

BROADWAY,

ing

that

trillion cubic

21

alone

discoveries
served.

higher prices for its stock.

York

per

the contract. This additional

from

large

a

natural

When Phillips Petroleum man¬

120

of

being negotiated at
mcf. and, in addi¬
escalator "clauses would in¬

standing, the importance of these

is

steadily making the kind of
progress that justifies gradually

Since 1917,

Members

net

great

a

Leason

Walter

New

25 Broad

share of additional

a

are

15c

crease

has discovered

controls 25

Although

is

eum

be

Rights & Scrip

Since

cubic feet have been added to

Phillips

Petroleum

above

dedicated

was

contracts.

1952

serves.

a

precisebuying
level.

contracts

trillion

cubic feet.

de¬

i

m

15%

con¬

pipeline, carbon black

other

feet and

dif¬

fer

B A relay 7-5660

it

makes

of

of

net

a

tion,

estimated

and
that

growth

.120 Broadway, New York 5

total

a

company

feet and

about $2

earning power. In practice, this
might be somewhat higher since

approximately 10 trillion cubic
feet of gas so that it now owns an

sifica-

n,

Members

At

was.

owned

cubic

time the company

ag¬

ience,

p e r
v e r

o

it

it

the

1949

that

various

and

-

Steiner,Rouse&Co

bigger

even

as

Of this total 77%

gressiveness,

Corporation

Dept., Bruns, NordeCo., N. Y. C. (Page 2).

&

this

and

cubic feet.

which

the

of

trillion

1114

to

bine

of

to

Companies

New York Hanseatic

Manager

Research
man

Low,

from this business which amounts

are some

c o m

encountered

Sand, huge

estimated

technological
con d it ions,

Western Natural Gas

the highest

discovery looks

the

and

c

inch.
pres¬

square

per

among

J.

Andrau

deciding whether a given stock is
cheap or dear in relation to earn¬
ings, dividends, and changing eco-

Southern Production

,

pounds

—Henry

over

than the previous discovery of the

in

price is important

with-pressures

Members American

Frio

East Tennessee Natural Gas

American Machine & Foundry Co.

made in the lower Frio Sand

was

at 13,900 feet

costs

would

be

very small and the tax rate
also not too burdensome because
of the 27%% depletion allowance.

trillion
Accordingly the company might
discovery have a net income of $30,000,000

the Air Force;

lays for
trol

use

midget electric re¬
in radar, gun fire con¬

apparatus

tronic

accessories,
saws

for

wood,

such

high

metal

similar

and

instruments;

elec¬

and tool
radial arm

power
as

Over-the-Counter

Quotation Services
for 40 Years

speed
and

cutting of
plastics,
and

wood

working and metal cutting
machines;
specialized
bakery
equipment; bicycles, velocipedes,
garden

and

tubular

metal

National Quotation Bureau
Incorporated

furni¬

ture. truck and tractor rims, rings
for jet engines and other circular

Established 1913

46 Front Street
CHICAGO

Continued

on

page

22

NewYork4,N.Y.
SAN FRANCISCO

Volume 177

Number 5198

Commercial and Financial Chronicle
The

...

(887)

Getting Back to Sound

INDEX

Lichmkii

B. S.

Economic Fundamentals

Articles and Netvs

AMD COMPANY

Our

By G. A. RENARD*

the price of government's

National

Association

spect

as

of

all

we

faith, to meet

low price of a competitor.

re¬

top management policy
of ethics for

a

proving

maker, has* a*.code
industry.
It
pledges
efforts

our

treat

takes

but

doubtful

to

You

The

,

Soviet

o n

Outlook—A.

W.

in

by

teamwork.

our

for
In

It also

pledges

us

treat

be

every

Again
is'

Electronics—From

7-~ira

arev.

have

Obsolete Securities
Dept.
99

4

.___

No

to

supplier,

prepared to

meet

without aid

tionary conditions.

same

consideration
to

him

catcning

wish to receive from

tomers.

are

our own

cus¬

complete approval
and surely that of

one

with

us

those

on

on

We

borrowed

Purchases

are a major ele¬
production costs, with a
comparable influence on profits;

for

of

dollar saved in

a

spending, in
securing better value which is not
necessarily in lower prices, rings
the

bell

same

the

on

profit

*

ister

as

'

policy

ing

have
we

prices

an

are

that

would

loans

in

so

we

favor

depressions.

hardly be that foolish.
out of

come

believe in

a

factual

and

realistic appraisal of fundamental
We
don't
go
much

.conditions.

economic

gook,

plans, gobble-desales
forecasting that

or

catches

with

us

loaded stock of

a

high priced goods.
paper

It takes

teamwork

agement

The

New

profits,

and

to

man¬

protect

there

is

no

* "

•

'

Court

gets into
this teamwork
act, too, by declar¬
ing it is a complete defense to a

charge of price discrimination
to

differential

show

that

his

made

was

in

for

price

address by Mr. Renard at Pur¬
chase-Sales Dinner of
Purchasing Agents
Association of New York, New York

City,

Outlook

for

has

face

of

the

a

pe¬

Cook

Resigns

SEC

as

,

it

Deals.

by

We

mess

the
have

we

this

situation

will

are

not

with

the

realization

ecutive makes

more

difficult

more

than

an

ones

economic

makes

in

ten

prediction

policy
best

of

ex¬

forecasts, and
every

day,

planning ex¬
years.
Every

decision you make is
that

a

prediction.

that this

course,

or

decision will have

or

success

results.

Those

decisions

and

profits

of

business

the next few years.

Philadelphia

international

responsibili¬

ties,
Social
Security, collective
bargaining, and high living standon

(Editorial).:
'
.

Business

Man's

Canadian

page

Members New York Stock
Exchange

•

Bookshelf

Chicago

Securities

Y.

8

Delhi Oil
U. S. Airlines

Einzig—"Britain's Move for Economic Freedom"
From Washington Ahead

NSTA

of the

LOS




News—Carlisle Bargeron____

•

Schenectady

•

Worcester

CROWELL, WEEDON & CO.
ANGELES, CALIFORNIA

Weyerhaeuser Timber

6
•

42

Funds

35

Singer, Bean
& MACKIE, Inc.

8

Our

Reporter's

Our

Reporter

Prospective

V

38

Notes

News About Banks and Bankers

34

Report

Security

34

Offerings

37

Salesman's Corner

Security

I

Like

and

Current
(Walter Whyte

Park

25

REctor 2-9570
D.

WILLIAM

c°""i8ht

Office

Reentered

COMPANY, Publishers
New

York
to

7,

N.

Y.

DANA

SEIBERT, President

records,
state

corporation

and

Other

Chicago

city

news,

Offices:
3.

135

—

market

news,

bank

South

of

5%

of

with

company

1500

value

N.A.S.D.)

non-diversified

per

%

gain

share

a

in

during

the past 9 years.

Owner

of

7,506,866

RESORT AIRLINES

quotation

shares
common

St.,

2-0613):

Canada.

Other

$52.00

$'48.00
per

per

stock.
S.

—Qn

in

of

the

&

KING,

LIBAIRE, STOUT & CO.

fluctuations

exchange, remittances

for

in

for-

eign subscriptions and advertisements must
made in New York fund?

be

EISELE

year.

year.

Publications

acc0unt

Report Available.

of

Bank ancl Quotation Record —
Monthly,
$30.00 per year. (Foreign postage
extra.)

clearings,
Salle

of

Countries,

rate 0f
La

second-class matter Febru-

year;

etc.).

111.-(Telephone STate

investment

asset

,95c30XTiam B Dana
as

Price

Members

closed-end,

record

Subscriptions in United States,
U.
possessions. ' Territories and Members
Pan-American Union, $45.00 per
Other

Every Thursday (general news and advertising issue) and every Monday (comissue

Eng¬

to

Subscription Rates
,

Publisher

Thursday, February 26, 1953

statistical

C.,

1879.

„

&

E.

(Concession

A

ary 25, 1942, at
the post office at New
York, N. Y., under the Act of March
8,

9576

SEIBERT, Editor

52

1 Drapers' Gardens, London,
land, c/o Edwards & Smith.

,

DANA

Place,

__;rir

Says)
—

Weekly

Patent

S.

Common Stock

5

financial* ch*ronicle
U.

MANAGEMENT, Inc.

2

You

Twice

F

46

The State of Trade and Industry

Washington

NY 1-1826

39

Best

Tomorrow's Markets

&

We offer

31

The

Exchange PL, N. Y. 5

1-1825

48

Public Utility Securities

Securities

40

Teletype NY

50

Governments..

on

HA 2-0270

5

Railroad Securities

plcte

Private Wire to

18

Observations—A. Wilfred May

TELETYPE N. Y. 1-5
Glens Falls

Cinerama, Inc.

22

8

HERBERT

•

Cenco Corp.

52

Dominion
•
•

Nashvilie

Brown Allen Chemical
33

Dealer-Broker Investment Recommendations

Spencer Trask & Co.
Manchester, N. H.

Cover
'•

'

,__

Coming Events in Investment Field

WILLIAM B.

Boston

21

Associated Development
and Research
Corp.

__i

H.-

Reg.

•

Angeles

Francisco

35

Bank and Insurance Stocks

PREFERRED STOCKS

ST., NEW YORK 4, N.

Los

•

San

Regular Features

Responsibilities
Our

1-3370

Wires

16

(Boxed)

As We See it

Published

Albany

:

York 6

Teletype NY

Direct

Securities Now in Registration

Must Meet Costs of New Economic

TELEPHONE HAnover 2-4300

Broadway, New

BO 9-5133

than

plans and forecasts
of bureaucrats will determine the
over

Incorporated
61

be

some

them may be unpleasant.
A
successful
management

A

Reilly&Co.

Admitting Corporate

on

Mutual

pert

J.F.

32
33

Chairman.

Members

'

For many
years we

BROAD

Savings—J. R. Dunkerley__

on

Vote

request

18
20

General
economic

against

Fair

Continued

25

G. Shull__

Savings—Karl R. Bopp

*

on

■

Indications of Current Business Activity

1953.

have specialized in

'

Savings and Mortgage Picture—Wendell T. Burns-j

But, there is certainly hope for
the future if we face the facts of

good

*An

Study

Devaluation—Frederick

'

Piasecki Helicopter

13
14

easy."

the

17,

1953—True D. Morse

cannot

we

now

lot about the

a

rather

Supreme

and

we

stacked

correct

forever.

seller

<

Kaman Aircraft
Corp.

Our Foreign, Investments

with

in, and that prize understatement
of the century
said, "To meet and

record of any boom that has lasted

The

debts

Administration

and

heard

life

profits, too.

off

money,

Eisenhower
cards

occupational bias.
interested in lower

Helicopt ers

squan¬

riod
having both surpluses and
mildly deflationary financing'.

in purchas¬

we

After all, our salaries

for

and

12

Outlook for

Hear!—Hear!

pay

financing,

ary

reg-

Nothing could be farther from the
truth for, as part of
management,

We do

Situation

.

procedure.

or

Some claim that
That

Credit

NYSE Members Asked to

So, where our boom has been
fueled by shortages and inflation¬

from other good man-

one

agement

1

'*

Donald

billions bor¬

10-year

cannot

of America

9

—

__

good

Gyrodyne Co.

s|i

rowed

team

very

—

*

borrow money unless we can and
will pay our debts. That is as true
of Uncle Sam as it is of Joe
Doaks.

ment

Spiral!—N. I,

Business—Roger W. Babson

•

it

only

7

Storey, Esq.__ 11

The

1943-4-5, and the billions

and

Video

__I

Hiller

Wage-Priee

The Prospect of Interest Rates

dered since 1945.

reason:

for

,

with
demand, and
disappearing around

profitable dividend paying fact.
Call
it
Purchasing, Procure¬
ment, or Mateiials Management,
the first

Captain

caught

up

a

been put on

to

____

Doman Helicopters

6

.

10

The

is

the realm of theories and become

one

Radio

Warns British Seek Dollar

Our most serious
problem is fi¬
nancial.
The future has

our

support,

has

Pocket

tries.

the National Sales
Executives, so
our teamwork should come out
of

for

5

Free

a

Stone

<*i4 *'f

infla¬

Production

world, with \he possible ex¬
ception of the Communist coun¬

■

That has
and

Need

War

the

would

we

up

snoitages

G. A. Renard

that

WALL
STREET, NEW YORK
Telephone: WHitehall 4-6551

Futile

-—Ralph M. Binney

competition

favors from

or

Proving

or

U. Cobleigh_

Agricultural

now only tor wellcompanies,
those that

ing

Devices

Companies

profitable

managed
are

Capitalist

Business and Professional Freedom—Robert
G.

estimation, business will

my

of

Multi-Employer Bargaining—Sylvester Garrett-

hadv

Profitable Only

Well Managed

junk!

4

a

it

■

fairly, extend¬
the

Exploitation

World-Wide

and

for

us

pay

affection.

sales

Be

See
We

'

Zelomek__

Commodities in
^Economy—Fleix Edgar Wormser___

justifying low prices ^

Business Will

both

seller

buyer.

Feb.

Economic

There's No Shortage of Dollars

in recent years, and that has cre¬
ated problems which need all of

and

to

the

the

World

V

.

7:—A. Wilfred May

•

basis profit¬

able

we

cash

'

.

T.vA.i Livingston-,

make

cases

No!

instead.

Philadelphian Quits NASD; Refuses to
Stoop to Snooping

interests

our

fellows

to

such

joined

little trouble

every

two

in

if

necessarily

customer

fairly
equitably

it

bargain,

Oh,

3
*

•>i

.

lawful and equally

a

THE DEEP BLUE SEA?

Cover

—G. A. Renard

because profits can no longer come from increase in inventory values. Scores tax and spend theory as prosperity booster.^

Manufacturers, which

,

;

_________

ness,

The

a

Cover

Foreign Trade Policies?

,

domestic responsibilities, and there will be
rough spots in busi-

>

Our

—Eugene S. Gregg.

international and

new

Taft_

With

Getting Back to Sound Economic Fundamentals

Warns

easy.

must pay

A.

_

Deal Administrations have stacked cards against Eisenhower
Administration and to correct situation will not be
we

Robert

What's Wrong

<

Mr. Renard, in pointing out business in years ahead will be
profitable only for well-managed concerns, says New and Fair

f

Problem—Preservation of Liberty and Free
Economy

—Hon.

Executive Secretary-Treasurer
National Association of Purchasing Agents

/.-.v..

Page

Est.

Members

50

of

New

1868

York

Stock

Excharnr-

Broadway, New York 4
Tel.

HAnover 2-6577

3

.*»*>•»» ■"«-

ai

4

V,/

"3

J 14 t

J

The Commercial and Financial Chronicle

(883)

isolated.

The World Economic Outlook
Economist

determined

and contends important

U.
in

The

War

outbreak

of

the

factor in world

Korean

Americans

most

them

there

are

were

surprised.

The

Commu¬

nist

sphere of

going

was

tion
o

to

We

but
too

wouldn't

W.

A.

In

it

has

Zelomek

of

in

Europe

over-run

it

prob--

a

a

connection, I would like

to call your

attention to the state¬

in

the

Truman

had

the

frank

see
which

Doctrine

aim

of

Far' East

in this country

on

the

we

just

must

begin

whether

its-

in

has

been

as

from

value

1952

on

to

Presidential

it

elaboration

on

needs
my

Post-Korean
The

world

Policies

We live in a world where inter¬
national, commercial and finan¬

j

policies
basic

there

third

quarter
124 in the third quarter
in the

confined

was

consumers' goods. Its
was simultaneous in lead¬
to

be

consumers'

in

or

be

war

peace? Will there

or

of

era

by

will
and what

Namely,

peace

depression,

a

new

recession

a

prosperity

or

in

a

the

course,

one

important

answer

can

However,

assurance.

with

questions

arrive

reflected in the composite indexes

from the current trends and from

of

an

and

here

The

on

country

is

high

the

the

past

decade.
the

some

of

The

1951

..

the

the

Without

for

first

The

question

businessmen
is

the

all

not

let

tional

for

political

in

the

of

that

world

the

interna¬

the

during

situation

remainder

develop

real

a

which

It

year.

world

the

is

war

United

States and Russia would be fight¬

ing each other. Nor, will
real

peace,

would

"Call Merrill

Lynch"

see

of

and

have

we

which

we

end of the cold

war

in

one

an

the

"police

will

be

in

action"

Korea.

-r:

—

a

good suggestion,

especially

sellers you

when

it's

■

.

any

-

•

lime in unlisted securities

hard

to

find

the

buyers

There

ganize
or

want.

ference,

or

meeting

'

•

conflicts
Because
107

literally

we

have

offices

65,000

from

thousands of

miles

of

private

coast-to-coast

customers

.

and

.

.

wire

can

dealers

that

contact

Such

"Big Four"

a

proposals

for

particular issues
What's more,
we

can

or

quotes

you

So,

any

for

time

Merrill

you

■

much

Eastern

come

countries

backing

will

and

would be

also

strength

Merrill Lynch, Pierce, Fenner & Beane
NEW YORK

5, N. Y.

from

totalitarian

other

be

of

powers
case

fatal

the

an

to

first

and

in

break

successor.

forward promptly to

received in

-

all sales

Moulden

Ray

his

.

literature

to these in-

response

to

quiries." Moulden :is secretary of

be difficult to find
another secretary as helpful to the

the NASD Investment Companies
Committee.
-;. ;
.•
..
.

announcement

The

went

and

loyal to

as

aims of the association

been."

has

It

V.

Robert
of

on

"will

it

say

H.

the

York

&

.

_

T

Dealers Mirrea up

^

Bayly balked at the anonymous
third-party procedure. Most of the
investment dealers in the district

President

Harned,

..

.

.

Martin

as

signedby

was

W.

Warren

Co.,- Inc.,

chairman of the "were persons he knew. He could
district committee, and Frank H. go directly to them and get their
of

Allentown,

literature and correspondence.
NASD rules require them to proPuzzled, I asked Bayly:
vide such information. But now
f
"Martin, what's back of your-he was being asked to get inforresignation?"
*
: l>
-mation indirectly. He felt it was
"I've been planning to go out on -.snooping.
- •
my own for some time, Joe, and I -/• He made known to Fulton over
finally did it."
« > •••;' •
.
the telephone how he felt. Fulton
"But why now, when your plans
said it was a directive. Ba^ly
are not jelled?"
*-could carry it out or resign. So
"Can I talk to you off the rec- -Bayly resigned. That's the story,
ord, Joe—just between you and Many securities dealers in Philme, and not for publication?"
adelphia are stirred up. They're
"No, Martin, I might want to not sure the NASD should use
print it."
*
third-party investigation methods.
Hunter,

of-McKelvy* &

partner

Co., Pittsburgh, co-chairman.

*

director

Fulton,

the

of

>

Not many securities dealers are

NASD

willing

in

Waghingtoq, ,and ; ^ked,him
why. Bayly,resigned; ;
"Why

i

interested?" he

you

"It's

business,

my

I'm

for

his

news-

a

facts.

"It's

personal, internal

a

has

matter."
"Is

all

have

you

to

to

want

me

But it-sure
know

to

.

cion

The NASD has

ing

members

advertising
used

ietter
.

Literature

on

in

policy requir-

a

file

to

samples

of
literature

sales

and

marketing

mutual

fund

shares. The NASD wants to make

that

Gf

It doesn't have

spy."

the

NASD

investigation

noncompliance; that
to all

sent

overtaxed
district

the

resources

of

that, finally,
the check revealed a high degree
of noncompliance—not necessarilydeliberate

false

the results

e^tra high pressure, no

procedure.

overselling,

no

no

no

The "CHRONICLE'S"

incident
this

can

£nce

or

but

through

neglect;
were

the out¬

that,

inadvert-

therefore,

felt to justify the

him to issue
bers

of

a

the

follows:

foregoing
Projecting

ways

NASD, the next thing would be for

directive to all secretaries and

business

ciation all

over

and

conduct

committees

of

the

mem¬

Asso¬

the country instructing them to find

means

of getting the employees of dealer
them everything they see or hear

firms to report to

that is
hold

powers.

as

type of Mr. Fulton's thinking in the policing

the

future

reaction to

be summarized

activities of the

derogatory to their employers. Finally house¬

domestics of the principals and

investment

firms

would

be

salesmen of

encouraged to

eaves¬

other

words

Therefore, such discussions would

drop

be

police state methods would be the order of the day
with an espionage system along Gestapo and OGPU

fruitless,

although

they

temporarily raise hopes for
ternational

disarmament

Continued

on

may

an

in¬

program

page

41

lines.

and make similar

All this

used and

the

secretaries;

rules

claims,

the

14

districts;
that only Bayly balked; that a
direct check was not feasible, administratively — it would have
was

that the selling conforms to
good investment practice and SEG
—

all

transactions,

undertaken because of suspi-

was

why

Bayly resigned. I think I've found
Policy

said

the

dealers. It

examine

representative of the

later

that.

was

are

the
of

or

pry,

in
he

commended
set up and

to

records

snoop,

a

going to say."
that

Col, /said

those

by

right

Law-

was

literature, openly.

say

"That's all I have to say and all

made

the

books,

that

And

maintained

is

purely

stand—"if

The NASD

But

.partner

Bayly should be

paperman."

'out\

quoted.

.

felt

asked.

I'm

be

to

M.
Stevens,
Hemphill, Noyes &
pence

'

are

agreement

Western

office, and

your

advertisement.

'Will you

are

humiliating to the

United States. Such

Trading Department

Offices in 103 Cities

all prob¬

in

countries. However, a real agree¬
ment
is not possible unless the

would




will

appeased, in which

Lynch"

70 PINE STREET

submitted.

be

the

help, just—
"Call

proposals

Iron-Curtain

want.

we're happy to do it.

would

in

person

preferably

a

ability, emanate from behind-theget

think

perhaps

where

or¬
con¬

peaceful solution of international

Why?

link

to

attempts

international

new

a

the

in

Livingston

sure

'

That's

J. A.

about it?"

confronting

over

outlook

unlikely
was

opinion

my

consider the following.

us

na-

.

think

various

prevailing.

now

reasons

the

other

on

by

immedi-

tions. This development

1953.

decline

recorded

industries

our

ately had its impact

York,

economy

sharp

high

of

conclusions

going into too much detail about

American

world

some

evaluation

forces

gained materially during the

from

*An address by Mr. Zelomek before
Feb. 24,

influence of

economy

has

Sharply rising com¬
modity prices dominated the trend

New

this

in

rate of output for defense.

Korean War.

of

production

at

basic

Can

we

some

mailing them to the firm named

get himset

of

yourself,

individual

an

quit

Then I phoned Wallace

no

goods, particularly textiles, to be

to be found in the continued

than

executive

Of

little

Inflation

address

United States?

any

decline

war

of

these

the

determined

are^

factors:

kind

ing industrial nations. The failure

part.

Club

Commercial and Financial

in

mutual

of

other

membership

.

coupon

appear

home

self

sell

to

which

his

in

You'd

manu¬

have

newspaper

any

Why

without plans?

-

I

Nov. 30,

man,

a

he'd

Basic Factors in International

of

am
discussing the free world
mostly; went through a period of
inflation, after the outbreak of the

Export Managers
ibc., New York City,

of

than

believe

don't

two

mostly
impact

F

;

rather

you.
cur¬

and from the fi¬

advertisements
behalf

if

from

clip

of your

pages

Sunday,

on

helpful

to

magazines

nancial

years

work,

-

campaign.
very

economy,

the

take

knowledge, of

a

rent

be

arrange

should

today faces prob¬

...

calling for

facturing technique."

re¬

and abroad/There

of 1952. This decline

action have been well aired in the

Therefore,

lems

would

vie e."

ser

particularly if concerned with ex¬
port trade

follows:

as

would

"It

"faithful

of

"Every industry and every firm

cial

of 1951 to

and consrQf'this

pros

desk the other day.

my

both

manufacturing

(1948=rl00)

took

Korea

I

may

letter

this policy, Fulton,
instructed Bayly by

21,

funds, whether
by dealers or underwriters. I
would appreciate your filling out
the coupons with the name and

10

happy

connection

policing.

own

Nov.

on

s,"

e

this

To carry out

un-

k

a

In

Strange.

forth,

liberty of quoting from a Brit¬
ish Journal which was placed on

exclusive of
Russia declined from a high of 129

and

as

decided

and

this

In

t

e r

after

the

activity in 1952, from the 1951
high. The world index of mining

be¬

we

Communists

withdrawal

strike. The

it

been

trends

letdown in world industrial

was a

when

question

to

now

Europe

The

face

time

Europe. In fact,

not

or

successful

our

in

success

lieve."

the

at

congratulating ourselves

were

also

industrial

in

flected

d

concerned.

are

their

what-

he

e v e r

national trade with which must of
you

in

information.

role, the NASD is the agent of the
The brokers and dealers do

of

"best

'

SEC.

m

h i

i

Bulletin"

"Evening

misleading

J.

secre-

His

the

world

holds

Martin

a

had

luck

the

have

War

Korean

containing

Russia had to be abandoned in the

we

pro¬

what the

on

outlook

just

was

Philadelphia
1952.]

National Association

the

wished

of

some

you

the

Securities

f

resigned.

particularly the outlook for inter¬

Events after the outbreak of the

"We. will

1950,

that

thinking

my

economic

to

.

ment I made at your Annual Get-

Together

indicate

didn't

from

associates

derelict if

American you as Export Managers the logic
of this statement. The fact that
stockpiling program at "any cQst.";:
(3) A
lower
level
of
world you have invited me here and the
civilian consumption due to high fact that most of your programs
deal
with the economic indica¬
prices.
(4) Currency problems on the tions, with some time devoted to
is
a
confirmation
of
part of leading consuming nations politics,
your realization.
5;
which restrict normal operations.

period of time.
this

I

I

in

o

I

day after. I would be

economics

•

rising; world

(2) A-halt

that

felt

much

be too

to

lem

short

:

to:

that

note

it

surface,

announcement.

of

tary

economist,

practical

a

will

permission

Bayly, Philadelphia district

the

by

the

routine

concerned with tomorrow and the

duction.

with

point

trend

(1) Sharply

con¬

Europe. Up to
this

de¬

attributed

Soviet has not

cerned

the

of

the

not

to

been

permit

hear

clining

sort

may

it,

discussion

detailed

a

na¬

challenge.

like

early termi¬

nation. Time would hardly

in international
commodities, the bloodstream of
the world economy, while the war
continues. Briefly, this liquidation
of most of the advances can be

this
any

f

gains despite the continu¬
of the war in Korea and

little evidence of an

East, if it

offer

their" post-

of

most

lost

ation

gain in the

Far

exaggerated

Korean

had

influence
to

have

On

place in

which took

with

of December 24,

and
emphasize
practical, I do not wish to harp on
past developments nor even on
those of today. I am
primarily

inflationary
too few of periods. However, since early 1951,
world prices, especially those of
important
basic
commodities,
other

guard, but the informed, and un¬

fortunately

As

reminiscent of

were

[Reprinted

currency

accomplished

good

you

July, 1950 and early 1951.

The advances

off

precipitated

Dealers,

economy as

between

It

By J. A. LIVINGSTON
Financial Editor, Philadelphia "Evening Bulletin"

Marshall Plan.

well as in
S. is probable trend of dollar. Foresees greater competition
international trade and states, with more normal status in
world economy, U. S. share in world trade will decline.

caught

not

the

and (2) threat of depression,

war,

Philadelphia!! Quits N.A.S.D.;
Refuses to Stoop to Snooping

1949, however

September, 1949. If it had con¬
tinued, it could undone most of

currency

by (1) threat of

of

compared

devaluations

difficulties of leading consuming
Sees international commercial and financial policies

nations.

when

world.

lowering of level of world civilian consumption, due to high
(4)

what

to

with the
depressions of 1929-1935 and of
1937, had a considerable impact.
It resulted in a significant rise in
unemployment here in the United
States, and gravely disturbed the
economic position of the Western

Discussing world commodity price trends, Mr. Zelomek attrib¬
utes recent declines to: (1) sharply rising world production;
(2) halt in the wild American stockpiling program; (3) a
and

recession

The

slight

International Statistical Bureau

prices,

similar

was

had occurred in 1949.

Byf A. YV. ZELOMEK*
President and

It

Thursday, February 26, 1953

...

reports.

In

naturally in support of the much mis¬
maligned phrase, "In the public interest."

Volume 177

Number 5193

.

.

The Commercial end Financial Chronicle

.

rr
Steel

The

Carloadings
Retail

<

Trade

Commodity Price Index
Food
Auto

Industry

Price

lo

ings, from individual
individ¬
ual, and from occupation to occu-

Soviet Exploitation of Capitalist
Devices Proving Futile

Production

'Electric Output

State of Trade
and

pation

The

Production

Mr.

May cites

democratic capitalist devices for

numerous

'
'

Little
the

variation

country at

-last week

dips in

as

rises in others.
As

in

total

industrial

production

the

period ended on Wednesday of
industries had the tendency of offsetting

some

■'

and

close

mines

to

the

that of

topped

post-war

peak

earlier.

year

a

and

about

less

than

Claims

for

down

unemployment insurance
from a year before.

14%

Non-farm

employment

in

benefits

fell

and

January, according to the United

to recovery

in

in

goods manufacturing from the "depressed
early 1952.
The January figure was off
December, due to post-Christmas layoffs of tem¬

1,600,000 from

1951

your

and

patent

Income of farmers in the United States in

about

$2,000,000,000,

the

This would be about the
from

the

Department

February will total
Agriculture estimates.

of

are
put at $1,200,000,000 this month, off 14% from
January and 11% below a year ago.
Income from crops is esti¬
at $800,000,000, one-third less than in
January but about

February, 1952. ~ Declines from January
nature," partly because of fewer marketing
department added. -

seasonal

"of

are

days,

I

.

-

control

he

does

authority under the Defense Production Act is
die June 30, and President Eisenhower has indicated

not

want

standby

authority.

But

there

has'been

clearcut Statement from administrators that Controlled
Plan commitments will end

then, it adds.

no

Materials

;

;

:

-

;

Meanwhile; a bill to provide standby control authority; has
introduced, and public hearings on the subject were sched¬

been
uled
:

to

begin before the Senate Banking Committee this week;

Conspicuously

missing

zation order of Feb.

end

and

of

definite

from

Office

the

of

Mobili¬

Defense

13, ordering immediate open-ending of CMP
ceilings on manufacturers Mar. 31,- was

production

word

that

controls

commitments

would

end

with

the

Last

week, for the third time, the steel industry submitted
Production Authority a report of recommendations
decontrol embracing the
following points:': v
'
J v
:

to

National

on

J (1) Immediate permission to book unrated orders after honor¬
ing CMP tickets.
(2) Immediate revocation (for period after
June 3d) of all CMP allotment authority other than for defense
and
atomic
energy.
(3)
Immediate announcement ; (effective
July 1) that production directives will be limited to defense and

atomic

energy needs.
(4) Immediate announcement (effective
1) revoking all other controls on production, distribution,
use, and inventory of steel mill products.
(5) Establish a steel
industry task force to provide for emergency needs directly con¬

July

nected

with

defense

or

atomic

but

energy

qualifying

not

of which

would

be

acceptable

as

package,

a

to the industry

"The Iron Age."

by itself, declares

but to finished steel
the

second

atomic

energy

against

these

were

facts:

must

well.

is

On

a

product-by-product basis for

single

no

item

defense

where

needs absorb the increased availability,

consumers

well

as

as

and

measured

it continues.

termination of controls has raised

safely depend

now

is not related to steel ingots alone,

the pre-Korean period,

The fuzzy
among

as

there

quarter

producers.

Can

serious doubts

steel

in fact

users

doing business with their suppliers?

on

they continue to look to hoMover administrators in

ington for help, concludes "The Iron Age."

Reports" to predict

;

Wash¬

compared with

Now

that

the

.and the

.,

"Ward's"'
cars

full

record

steel shortage could hold back
•'*

_

'*•

>'

j




1" '

'' •

-

<r

'

-

1

",

listing the

there,

made

cam

monthly incomes
(about $400

rubles

here again in taxation is
socialistic exploitation and

of work-

names

In the selling of government
savings bonds, as in many capitalistic

countries—not

United

rolling

there

effective,

was

is

including the

States —the

used.

capitalistic
is

lottery

lure

following

Again

the

socialist

-

mixture,

no

protection

has

*

existed

officially

And als°
haS been found bonds*
J
necessary bY these "socialists" to
Similarly in agriculture:—aL
•

there-

Sfjg, Mw' thougb U ^ of -coursefarms, the
socialized
via
the
collective

patent

in

Great

includpg bonuses tied to output,
Most industry is on piece work,

government

found

it

lutely

necessary,

.

function
ments.

the
as

The

.

so-called unions to
speed-up instru-

mere

workman

is assigned

dividual

Bntarrmor three -centuries, since a
production norm by the governthe.English Statute of Monopolies, ment
bureaucrats, which estaband here since 1790, shortly after lishes
the
amount
of
his
base
the. adoption of our Federal Conpay.
If his output exceeds this
stitution.

Since then it has

been

in

Thus

■

has

if

not

absOr

give

to

members

the in-

the

Kolhoi

of

extra hectare

an

property for their private gain

—the

free

produce
market.

where

'

nevertheless

expedient,

(collective farm)
of

his pay is

norm

raised; if it falls
practically every short, he either starves, 'is suscapitalist country, for the overall pended
or
else
punished
for
purpose of promoting the public
sabotage.
By speeding
himself
interest through
its encourage- up he might triple his
paycheck,
ment
of
new
inventions.
Of But his
happiness would be only
course, we know that without a temporary — for he would very
patent system there is no way of soon find that his
sped-up pay
protecting new inventions other rise was completely boobythan through -secrecy and withtrapped.
In
short
order
new
holding inventions from public higher production norms would
knowledge and benefit. *
be assigned to him.
So he frusestablished

(in

of such authoritarianism is

helping

farina

are

...

the

dissipated
little

the

sbld^on the

being

here

But

incentive

because

else-

as

motive

there

-.;

•

Continued

-

»

»*

•

so

peasant

can
spend his
in view of the scarcity
of consumer goods,

money on,

Discretionary Sanctity of Contract
Of particular interest to this audience".^-'although business nominally operates under the law of
.

contract,
with
legal protection,

ostensible

full

the all-powerful

tratedly finds that he must work State steps in whenever it suits
ever harder simply to keep from its
purposes,
to alter or break
eentive motive by rewarding the losing ground paycheck-wise; any such
arrangement, and whendiselosure of invention
by con- with his energy paying a penalty ever such action is unilaterally
ferring a limited monopoly, have for his previous ambition. To mix deemed to be in the "common
served as a primary instrument of the metaphor—he is on a tread- interest."
^
•
the

patents,
human in-

basic

.

capitalistic

our

Service

This

Ar?d

progress.

without

have,

recognized

least

the

in

West

For in

followed—

But

in

between
vital

are

metaphor-

The

foreign

observer

in

stance"

of

socialistically

practice
the

and

This

great

"all

,,.,.,,

equal"

differences

-

the

...

state

yn*on *s constantly struck

bastard-

,

permits

between

w.Uh

instances

of
capitalistic
class distinction and privilege—-in
Continued

earn-

on

East

page

typical.

the Soviet Union the gov¬

ernment may,

the

and

form.

differences

and

the Russians

From

principle the Russians also ized capitalism.

of

and does, take

over

the patent at any

time
—paying the inventor what it, the
bureaucracy, unilaterally deems
proper — without any real chal¬
In other words, socialism
lenge.
here also steps in by making the
government the only customer;
use

stripping

the

of

control

Hence,
like

so

individual

his

of

all

invention.

the

result

net

We take pleasure in announcing that

j.

is

that

other facets of ac¬
the Soviet system

many

—but

ROBERT A. LOVETT

the fact—of capitalistic

not

-

will

devices.
observer

the

in

Russia

*:

page

44

rejoin

firm

as a

General Partner

of March 1, 1953

"

,

so¬

cialistic regime's

our

as

to¬

day must be impressed by that

but

ments

toward

fields.

leaning

on,

capitalist instru¬

incentive
•-

<

in

BROWN BROTHERS HARRIMAN & CO.

many

J

PRIVATE

York
cf

the

Annual

Paten!

the

Law

address

Dinner

by

Mr.

of

the

Association

in.

Feb. 24,

1953.

»

♦**

,*•

f

Business Established IRIS

May
New
honor

Judges, Hotel Waldorf
Ballroom, -New York City,
-

-

-

\

,

Federal
Grand

BANKERS

.

,

of

text

Astoria

on

is

is

million

two

over

catering to

before

producers," said

car

in¬

purchasing power).

honored for having rendered
exceptional performance. When I
inquired
whether
such
honor-

ers

year—

3,109,000 in the like 1951 period. \

•"

attitude

this audience knows,

♦Partial

a

thev

bastardizing of,

lifted,

are

3,107,000 in first half of 1950—the

"Only
•

more

t

r

production controls

believes that first six months of this year will see more

than

rent

May

.

For

114,935 in the prior week and 55%

Federal

tax,

today, they follow the mere form

record first half pro¬

a

than the 80,076 of the year-ago week.

construction projects

on

tablets

tual practice in
v.

The past week, said "Ward's," car makers turned-out 124,101

•

how

As

duction of about 3,200,000 cars.

units,

use

under

Or

An 8% rise in automotive production last week has
prompted

"Ward's Automotive

will

talism and capitalistic techniques;
and

at

Today, total steel requirements for defense and atomic energy are
being filled with enough left over for civilian consumption con¬
siderably higher than before Korea, this trade authority points out.
greater availability

in

today,

toward-

portion

no

;

Supporting the industry recommendations

This

Wilfred

A.

Lip

presented

were

income

re-gressive

for

directives.
Recommendations

of

case

10,000

there

,

law June 30.

is

ours,

compulsory savings
fact, the existence
vigortpr;matters of nique had been sufficient, now it ously disclaimed to
visitors); but
a broad
scope. is found necessary
to throw in actually tremendous pressureThis will en- "the good old do-re-mi"1 along with-stigma is exerted on the incompass
the with the decorations,
y
'
' dividual to
buy his quota
of

ments

scheduled to

in

"Do-Re-Mi"

I was inthem
as
a
variably told that whereas in past
springboard times the honorable-mention tech-

the

Administration, states this trade journal;

political
e r e s

Russia

national

Steel

the

above

.

This week the steel market is in a state of confusion for
lack of official word from Washington that steel control commit-

control intentions of the

h

sp

a

actually are going to end July 1, states "The Iron Age,"
ihetalworking weekly, in its current summary of the steel
J, trade.
■
'•/
'■
Adding to the confusion is the negative force of bureaucratic
holdovers dragging their feet in administering decontrol. In ef¬
fect, their grudging acquiescence is sabotaging clear cut de¬

91%.

our

personal

phil-

economic

and

Jr.;
.

pro¬

since

ancj

mated

above

Old

even

pro-gressive; there being
complete cut-olf of progression

in

h

the

livestock

25%

Good

and

a

the

in

stead of

? 1 n g vT°
proletariat- I noticed in factories
throughout

as February, 1952 but down
sharply
received in January.
Receipts from

same

$2,700,000,000

The

than

As a clear and striking exam- distortion of capitalistic incentive
pie:—to encourage the individual forms.
For the income tax on
worker's output, the Kremlin has business is levied discretionarily,
osophy, fortu- found that some motive is now arbitrarily and
inconsistently by
nately
typify needed other than mere
duty to the State. Business can estimate
much
of
the.the State or idealistic love of the its tax bill only "by ear."

working hours; and
practice and patent

sales clerks and postal workers.

porary

Russia's

But

consumer

levels" of late

trasted with

a

gentlemen being interested
patent
law, at least during

Tax

begins at

minimum

unlike

You

Russia.

slowly than in our
haven of capitalism; the Russians'
top surtax being only 13% con¬

States in production of both military and consumer
goods, and
in
debilitation of her agricultural and industrial workers.

States Department of Labor totalled 47,200,000.
This was 1,300,000 higher than a year earlier.
It ascribed this increase mostly

to in

more

omy's shortcomings, her continued trailing behind the United

t

Super-

incomes

States;

gresses

capitalism by bureaucratic
socialistic interference largely accounts for the Soviet econ-

the

4%

lower

United

such bastardization of democratic

all-time high reached in the last quarter of 1943.

were

catered

personal

far

the

However, it

6%

on

bonuses, in actual practice Soviet follows the form—but not
functioning—of successful capitalistic devices. Maintains

during the past five months total output of the nation's

factories
held

evident

was

large in

motive

exploit to bolster apathy and slowdown; but which they have merely stultified into an ineffective
socialist-capitalist hybrid. Holds that in various channels run¬
ning the gamut from patent protection for inventors to workers'
to

necessary

course.

Communists'

Also in the field of taxation,
quite surprisingly, is the incentive

en-

couraging the human incentive motive, which the Russian rulers
it

the

by

Capitalistic Taxation

-

Business Failures

decreed

as

bureaucrats, of

By A. WILFRED MAY*

Index

all

—

found

for

5

(889)

t

...••>

NEW YORK

Pe'"-vary 26, 1913

BOSTON

-

.

PHILADELPHIA

CHICAGO

14

'

6

The Commercial and Financial Chronicle

(890)

oi Dollars or
Free Economy

There's No Shortage

Commodities in

a

By FELIX EDGAR

i

and

subsidy plan during
There

Think
gans

fashions in economic

are

thinking,

a

w£ll

as

on1, the

back

clothes.

in

as

popular

that have filled

slo¬

the air for

the

past 20

years.

We

,

Amer i

c an s

love
Do

slogans.
re-

you

member"techn'ocrac

which

was

of

out

throes

y",
go¬

lift

ing to

us

the

the

of

depression,

or

the "share the
work"

stressed

during
£.

Wormser

days;

N R A
or

"mature

the

econ¬

omy" doctrine of the Temporary
National
Economic
Committee,
seriously advocated by many pro¬
fessors busily dissecting the ills
*An

vanced

address

by Mr. Wormser before
the Colorado Mining Association, Denver,
Colo., Feb. 12, 1953.

it has
Other

slogans

were

ad¬

simple descriptions, or

as

speedy cures for economic diffi¬
culties. Many voices were raised
in caution during the extraordi¬
but

to

avail.

no

The

record

conclusively how mislead¬

ing

untrustworthy they proved

to be.

At

'

,

rate,

any

would

you

with

experience

serve

But

no!

swallowing

Again

we

popular

new

a

ob¬

slogan,

in the press, now being
widely circulated: "Trade — not

picked

aid,"

up

the

is

ceedingly

These

cry.

low

so

now

already

the

on

appealing

are

ex¬

catchwords.

Fundamentally the thought is

current

predicament

them.

elimination of

And it

distinguished

the

by

the

which

omist,"

stated

November,

as

is

"It

1952:

tariff

can

would

to

dollars

enable

balance

to

glad

find

to

columnists

planting

and

his

and

closest

associates

poison pen variety of journalism that has developed
Washington in recent years and of their fears of its turmoilprovoking qualities. Undoubtedly he has sought to impress upon

his official family that he expects them to be a team, to have their,

ble

for this condition.
the

to

me

general

This

disagreements but to iron them out among, themselves and not be
running to the columnists. He has a pretty high class of men

leads

observation

around him

that, whenever you hear the term
"shortage" emphasized, you can
be

suspicious that

the

picture

is

the

threatened

or

foreign exchange. You
the lead shortage a

or

may

recall
or

which

ago,

so

the top level is concerned, I

member

himself failed of confirmation.

a

mitted
State

Due

February 1, 1953

is

it

with

which
SUBJECT

TO

currencies.

AUTHORIZATION

ful,

BY

would

have

the

on

ARE

A

to

of

make

statement of

a

balance

as

may

phrases

for

of

cies, plus
Rarriman

Ripley & Co.

Incorpcmited

.

E. Button & Co.

Wertheim &'Co.

payments

It is not

make

tiin Bros. &

Boyce

Adams & Peck

Auchincloss, Parker & Redpath

Burnham and

Granbery, Marache & Co.

Hirsch & Co.

Julien Collins &

New York Hanseatic Corporation

Bartlett & Clark Co.

Company

William Blair &

current

tariff has

blended

with

the

Commission's

alafming
Arthur L. Wright & Co., Inc.

Hallowell, Sulzberger & Co.




Rambo, Close AKerner

Stokes&Co.

value.

similar

propaganda,

metals

and

Incorporated

progressively

Policy

pictures

shortage

'minerals,
worse

as

Continued

propaganda

from

the

same

general

men

entitled

are

to jobs

and

Missouri; Cain of
By all the. rules of the game

leading Republican Senators

gravely assured jobs would be given to these

men.

are

still able to wield.

E. S. Martin Joins

To

Open N. Y. Branch
York

branch office

City at '61 Broad¬

way, under the direction of ShoShi

Kawashima,

latter

the

The firm

March.

tained offices

in

part

<©f

formerly main¬
New York

S.

associated

right,

Martin

with

50

has

George

City, member

Sea-

New

York

of the New

York

Broadway,

Security

become

A.

Dealers

where he will work

Association,
on

the retail

and wholesale distribution of

City porate

securities.

Mr.

cor¬

Martin

from 1927 until 1936. The new 'of¬

recently resigned "from the

of

fice

department 'of Coburn & Middle-

growing

page

New

a

George A. Searight
Edward

an

time goes

on

emanating

Nomura Securities

in

wipe out

For example,

report

There is little doubt that this

Nomura "Securities Co., Ltd., of

Materials

future

the*

to

over

resources

many

unfortunately been
other philosophies

President's

natural

to handle them "in the interest

it reveals the influence which the "liberals"

curren¬

of

to

or

however, along with that of Robertson is interesting to the extent

can

drive

our

also

Wiping Out the Tariff
The

"turn

propagandists have pursued them relentlessly,
particularly Brewster. It is not for the people generally to be
concerned in the personal fortunes of these men. Their
experience,

a

readily
country non-competitive

a

one

reasons

managed

pressure

payments,

of debatable

Company

DeHaVen & Townsend, Crouter & Bodine

Company

that

the

to be that

seem

"liberal"

a

But the leftist

surprising to
are

to

people."

Tokyo will open

our

£' ;ynolds & Co.

were

in the international field.

(Incorporated)
t

these

deficit

who

intends

Washington and Brewster of Maine.

which

Central Republic Company

*

A

foreign trade difficulties, and

welfare

\

propaganda barrage would

administration, not

sources, has so far prevented Eisenhower from giving jobs to three
defeated Republican Senators, namely Kem of

the

create

can

of the fundamental

Who know

Glore, Forgan & Co.

to this

has got the Administration faltering.

coined.

nation

any

he

of the whole

called

ever

that

movement!

aware

f ' /th & Co., Inc.

answer

"conservative"

was a

that was
But, as the propaganda has built it up, the
whole country is watching this appointment of Eisenhower's to see

re¬

of

Buchanan throws the bal¬

elected in November.

pain¬

who
one

stale.

Corporation

been

of power

The
it

Oxford

famine"

find persons abroad

The First Boston

had

ests," natural gas and private power companies.

quickly, with the aid of the print¬
ing press and a strong trade union

of the under¬

lawfully offer these securities in such

the

an

professor,

"dollar

gives its mind to it

state in which

appointment

to the "liberals," so it is essential that a "liberal"
take his place. Robertson is not a "liberal" but a "tool of the inter¬

countries

heartening to read

was

servation

this announcement is circulated from only such

ance

colleague of his in Cambridge
alleged to have made the ob¬

is

signed

three "liberals" to two "conservatives."

disappear

politically unpopular, ad¬
of living within their

most absurd

any

his

upon.

whether

the

he obtained in

and

Staff promptly loosened a barrage against him through
cooperating "liberal" columnists. According to their propa¬
ganda, the Commission, as regards the five members, is now divided

dollar

The

also

currencies

University

may

Commission,

private enterprise plunderers"

It

Offering Circular

Chairman of the Kansas

Senator Frank Carlson of

their

devastating effect

a

refuse

or

cently

The

Corporation

succeed

they come

as

means.

Price 99.625% and accrued interest

to

Jeff A. Robertson,

of

justment

THE INTERSTATE COMMERCE COMMISSION.

to

Truman

by

But the "liberals" within and around the Federal Power Com¬

sup¬

promptly if we had free foreign
exchange, but a free exchange
would

THE ISSUANCE AND SALE OF THESE BONDS

Commission

Power

mission

that

unavailability of

or

shortage

February 1, 1978

.■

succeed
Kansas,
and other influences sub¬

honorable

practically agreed

All

ply. The free market price helps
to correct any imbalance. And so

?

Dated

free

a

as

name

ability

\

i»

in

the

happens there
is that the price reflects the avail¬

1 7

i

overnight

Federal

the

of

Buchanan, whose nomination

who is about

free economy. The current well

disappear

5H% Series due 1978
i

shortage, in

no

new

Chairman

advertised copper shortage would
market.

t

is

quite

am

score.

is, indeed, already getting its
smelly Washington journalism in the matter of

first taste of this

gov¬

a

There

this

on

The Eisenhower Administration

,due

was

the fact that the

to

as

trouble

no

However, it will take years before the lower levels can be
straightened out. There are still, and long will be, thousands of
lower level workers of the leftist persuasion, who came "into gov¬
ernment under the New Deal and who now have been in so long
they figure they have guaranteed careers and will continue to ply
the gossip columnists with stuff against their bosses.
/
1

place in

some

and, insofar

he will have

sure

ernment established a price ceil¬
ing for lead well below the world

Mortgage and Collateral Bonds

But Eisen¬

evidence that they

given

know of the

own

market.

First

have

The clever slogan "dollar short¬
age" implies that we are responsi¬

solely

Company

To this

in

year

Maine Central Railroad

Carlisle Bargeron

skepticism shared in high places.

modities

$17,000,000

stories

The practice was not so pronounced under Truman.

intrusion of governmental
control in a market, whether com¬
February 26, 1953

newspapermen

matching of wits that constantly went on around him.
writer, it smacked very much of disloyalty.

ac¬

actual

N%W ISSC'K

not

do,

the

extra

my

to

House, but with their later calling

friendly

hower

am

had

losing his fight in a Cabinet meeting, instead of
accepting the decision, would carry on an underhanded light
through the gossip columnists. Roosevelt knew about it and seemed
to enjoy it in his love lor competition among his subordinates, for

counts."
I

It

Cabinet member

the

dollar

its

Administration.

stationed at

in

Western

sufficient

earn

might

against fellow Cabinet members. This was quite
a knife cutting practice under Roosevelt.
One

complete abolition of the Ameri¬
Europe

are

Washington politics.

the Cabinet

the White

recently'

whether

but after all they

warning,

meetings with the

1

doubtful

asso¬

was

Roosevelt

"Econ¬

as

his

warn

news¬

would be after

with Cabinet members discussing

English

London

out of their

came

very well have been that the
seeking to deal with an entirely
different situation, one that developed in the

ing England and Europe is voiced
periodical,

Cabinet

the job and most of them inexperi¬

President

tariff in assist¬

our

fit to

enced in the great game of

complete

a

his

on

might think they should not have

the

green on

(also

pound Sterling. Some doubt about
of

You

needed

of

consisting of a chronic
imports over exports
(dubbed the "dollar gap"), which
threatens
the
stability
of
the
effectiveness

saw

ciates that the newspapermen

unbalance of

the

censorship

lot of adverse and unnecessary

a

can't recall when Cabinet officials

I

President Eisenhower

particulars shortly.

you

so-called

to have aroused

seems

meetings with the President and submitted themselves to
paper interviews as to what went on. The only
thing new in this matter is that apparently

slight that
free trade.

so

borders

give

zinc

and

Europe),

hesitate

us

unquestioned

others.

of

think
economic

these

nostrums would make
before

are

Eisenhower's

President

comment.

has

shown
or

other nation

any

meetings

periods that gave them birth,

nary

not

By CARLISLE BARGERON

Apparently the theory behind
the slogan "Trade — not aid" is

by the International
Conference.
Most
of

colorful

these

move¬

ment

Felix

Materials

or

its

the "dollar shortage."

coined

must erase our tariff,

I will

slogans will come to mind. Last
year I spoke to you about "entitle¬
ment of consumption," an expres¬
sion

we

that it would help England out

Recently

country?

our

been

technical

-

is
"unilateral
of the tariff," mean¬

it

period of price decline.
of

The

employed

protection provided

S. producers. Says ,
such "stabilization tax" would cost taxpapyers less than anyi

|

Washington
Ahead of the News

well in commerce—nationally and

tariffs

imports of non-ferrous metals to protect U.

urges a

From

tariff, all would be

our

the outset, that our lead and

sliding scale equalization or stabilization tax on

j
[

eliminate

reciprocates. Let me state right at

Reciprocal Trade Agreements Act in 1934 has all but wiped
out tariff protection on metals. Decries cry of "dollar shortage

|

American

is the

trade

whether

tariffs, contends inflation since adoption of the

to eliminate our

to

an<^l that, if we would only

ing that

Prominent metal producing executive, in condemning pressures
'

barrier

tariff

elimination

J
J|

sensible and timely, but the flaw
the implication that the chief

term

Vice-President, St. Joseph Lead Company

Thursday, February 26, 1953

..

is

internationally.

WORMSER*

■4-nil-

.

43

for

the

present

will

act

as

brook
a

listening post to keep the Tokyo

office

informed

of

new

develop¬

ments in the New York markets.

and

sociated
Shields

prior thereto was

with
&

sales

Georgeson

&

as¬

Co.,

Company and Halsey,

Stuart & Co., Inc.:

Volume 177

Number 5198

.

.

The Commercial and Financial Chronicle

.

(891)

of

Electronics—From Pocket Radio

field

tronics

is

every

subject

bandied

about,

elec¬

almost

thinks first of radio—

one

V

scientific
*

and

business pene¬
tration

of

beam, ray and

every

tube.

But

that's

wrong.

Radio

loused

phono¬

up

laboratory

have

your

your

TV

radio;

on

next

records staged

come-back.

a

Then

radio
it¬

reasserted
Ira

U.

Cobleigh

self

little—

a

housewife

a

can't watch TV while she

bakes,
Then
126

darns

the

came

makes

or

stations

2,000

total

television

in

years

109,

and

offing;

perhaps

and

meanwhile.

of

the

and

away;

commercial

bed.

great TV release,

instead

color

two

washes,

the

plus
short

a

That

of

spate

a

educational

TV's

have

would

seemed par for the course for this

dramatic

industry,

but

Com¬

no.

munication and entertainment

are

itself

to

bursitis—all
You've
cement

of

Think

of the word control, and
have, in this day and age, to

you

think of electronics.

Do you

want

blind-flying airplane that can
adjust its course for wind drift,

looming mountain

a

range? Electronics has the

the

did

could

not

only

make
Stalin's

on

rate

is

in

It's

the

on

of

by remote control. A

stands

feet

many

military

bombers

rectors,

firing

controls

built

tection

and

depend

alike

control box in his hand. If he

tips

it

the

way,

pump

moves

pile, sucks the cement out and

a

it,

pumps

pipe,

feet

150

through

hose, into

or

can

keep

controls

of

per¬

tip of the

a

(electronic) by the

trol

panel

fuses,

with

2,000

yards

that insulates the road

the

rather

»to

electronic

an

the

the

or

bounce

sighting

gun

is

out

mechanims.

military

phase—or

part of it.

a

Switching to the
chores of industry,

ordinary
you have no

how

many
are
now
being
by electro-gadgets. Did you

done

snarl at

ever

because

short

he

of

device

elevator operator

an

landed

level

inches

two

floor?

your

will

electric

An

the

do

this

tubes?

or

five

Electronics

times

the

mailing

opened
labor

the electric
garage

well

as

tem

the

of

or

wrecks

if

neer

fails

the
or

all

for

need
see,

vision
is

sorts

of

railroads—

block

for

that
of

the

create

engi¬

befogged.

to

than

more

in¬

does

industry,

writers like Underwood, or sound

military,

recording
phone

machines
Webster.

or

like

Dicta¬

Burroughs

be

out

a

one

electronics

1953.

of

It

may

even

the most productive
pru¬

gathering investors.

Minneapolis Honeywell
Regulator whose common sells at
55 and

about tops in

Then,

of

number of

there

course,

are

TOLEDO, Ohio
Marryott

working in quite specialized elec¬

Gill

tronic

such

Servo-

as

e

Hemp¬

is

trus-

a

e,

i

v

e-

c

chairman

and

chairman

of

Finance

Committee

of

Clifford

Hemphil?

York

New

Col¬

Medical

Fifth

and

lege-Flower

Avenue

hospitals, and director of
ber of

a

Co.,

—

has joined

Associates,

Inc.,

Inc.,

Phoenix

Mountain

ration,

Casino

tion,
Lake,

N.

Silk

Company

Corpo¬

Corpora¬

Lake

of Spring

Hastings

J.,

Company and

a

Square

trustee of

Spring Lake Memorial Com¬

munity House.
He

is

an

,

.

j

alumnus

.

of

Williams

Lawrence R.
the

staff

of

Gardner

College, and is
of

the

Trust

a

Board

former chairman

of

the

Guaranty

Company.

This

Identifying Statement is not an 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 whidh must be given to the buyer and may be obtained
from such of the several Underwriters as are registered dealers in securities in this State.

271,940 Shares

of

The Carborundum

Common Stock

handle

can

Company

make

can now

name

$5 Par Value

the

field

of

Business.

ThcCompany is

a

producer of manufac¬

Institute

of

Tech¬

perform

can

in

formerly requiring hours

or

calculating machine.
the

of

is,

most every

tainly

phase of

such

endeavor

down

run

electronics
our

temperature

Not

in

al¬

a

New Issue. The shares of Common Stock do

represent new

of the

field

worthy
fascinating media for invest¬
ment. Well, it does.
The

21

and

TV

of General Counsel for the Company, the Common
Stock is exempt

expanded

tion

here.

are

the

TV.

mean

at

shares
25

vide

paying

32

paying $2. Of these,
of course, the biggest

is,

with

Philco

it

chant of

The First Boston

of

and ' Motorola
in

a

pro¬

Kidder, Peabody & Co.

Smith, Barney & Co.

Vietor, Common, Dann & Co.

sets; while Zenith offers,
complete radio and
me

the Common~Stock of The

peatedly rumored

Carborundum

graph. X-ray is old hat, but elec¬

date for

tronics

est




rapid

Clark, Dodgs & Co.

in addition to

TV

a

to

be

a

candi¬

split (it has the small¬

number

of

Hemphill, Noyes & Co.
White, Weld & Co.

wide

electronics; Admiral
quite spectacular mer¬

a

Glore, Forgan & Co.

BIyth & Co., Inc.

relating

provide

Corporation

ownership of

representation

variety

share

to

77

at

carries

NBC;

'Outstanding Securities. Theoutstandingsecuri¬
ties of the Company at January 31, 1953 were:
$10,000,000 3)4% Note due 1965 to be prepaid at
the rate of not less than $1,000,000 annually com¬
mencing >1956; $1,000,000 3? 8% Notes due 19561959 guaranteed by the Company but issued under
a Bank Credit
Agreement dated October 1, 1952 by
The Carborundum Metals Company, Inc., a 91.5%
owned consolidated subsidiary, pursuant to which
an additional
$500,000 has been borrowed since Jan¬
uary 31, 1953; £50,000 (about $140,000) borrowed
by an English subsidiary from a Norwegian subsidi¬
ary and guaranteed by the Company and 1,536,430
shares of Common Stock ($5 par value).

Price $32.75 per

big produc¬

logical

paying $1.60;
Admiral at 28V2 paying $1, Moto¬
rola
at
39
and
paying $1.50
Zenith

to make applica¬
Common Stock on the New

There

existence,
channels plus Ca¬

Radio

at

Company intends

in

sets

The

Pliilco

under present laws from personal

in Pennsylvania.

Listing. The

tion for the listing of its
York Stock Exchange.

Industry

with

million

to

Pennsylvania Tax Exemption. In the opinion

property taxes
start

go

,selling stockholders.

of

present

and

Let's

financing by the Company. All

proceeds from the sale thereof will

life. Cer¬

dynamic

a

should

wide variety

abrasives, coated abra¬
refractories and non-metallic
electric heating elements and resistors.

sives, high

not

brisk

a

of

uses

a

even

days with slide rule, calculus and

it

products include

outstanding shares

to

a

cdpv

of the

Company.

prospectus

num¬

companies including Carrier

Hotel

Building.

vineyards,

t

(Special to The Financial Chronicle)

a

companies

entry by perseptive and fact

With Gill Associates

heating thermostats.

smaller

Mr.

hill

the

paid $2.25 in 1952. This is

Di¬

of

demand, should not Corporation, Raybestos-Mana
slackening of hattan, Inc., Dragon Cement

isms

is

a

suffer

in

one

fourfold by
industrial and

dent

Please send

now

premium, it

a

miss.

lines, an excellent hearing
aid; and its common has been re¬

can

has

points

buttressed

to

ing

rectors.

the

selectivity

the

Most famous maker, perhaps, of
industrial
type control mechan¬

medicine, if your heart is to be
tested, they use an electro-cardio¬

over

its

that

many

at

business,

demand
prove

at

that

entertainment

at

17

(paid 90 cents in 1952) seems to
be
a
dependable value and has
paid a dividend since 1895 with¬

Inc.,

paying

market

ever

appear

type¬

b 1 ish

February 26, 1951

moments, complicated calculations

has been

Medicine and Industrial Fields

Slipping

control

vistas

new

machines
of

which

consider

road

can

electric

of

is

with

of.abrasive grains, bonded

Radio

the

you

Massachusetts

nology,

$1,

sys¬

control

can

provide

you

if

tured.abrasives. Its

and

signals

makers

longer

lous electro-mathematicians up at

and

lessening

cluded

>

stock

and

u

Board

specialized

Fund,

month,

hesitant

recently,

P

con¬

wires,

familiar with those fabu¬

course,

doors,
Well

control

grow

waxed

Bur¬

a

cards, checks
vouchers, with incredible speed

blocks, safety devices, and switch
track

would

With

Machines,

Register and

roughs Adding Machine. The list

saving devices. For instance,
payroll requires deductions

a

opens

protection.

thing

and

brand

nadian stations

familiar with

that

burglar

be

electronics have

room,

up

thousands

are

the

as

doors, and provides

same

traffic,

course,
eye

the

of

Electric computers

can

keenest eyed human operative.

You're, of

nod

Business

Cash

who
cov¬

17th consecutive dividend.

elec¬

would

Graw-Hill

Labor Saving Devices

auto¬

car,

matically. Want to sort bearings,
screws

International

business

names

this

of

the Mc-

of

mechanism.

There

idea

of

of

big

those
a

vision-Electronics
which,

1915,

elected

director

a

or

releases, and in¬
obeying like slaves,

slightest

field

the

for

like across-the-board

(described, of course,
solely through prospectus), Tele¬

NYSE.

in

meeting of the

mutual fund

at

invest¬

York, since formation of the

firm

Company at

is

Co.,

and amazing accuracy. You are, of

deadly level

a

thanks

That

the

the

on

Telephone also

&

New

penetration

single category. Sylvania

Noyes

bankers of 15 Broad Street,

was

broad

there

Hemphill,
ment

To

switches,

ductors—all

the

dozens

is supposed to
missiles from being

sells

world,
Westing-

for social security and income tax.

elec¬

away

of

up,

may

every

projection

elaborate

and

back

be
required.
accomplish all this, there's a
as

classifying

enemy

bumps

oper¬

the

gadget
field

In

12

tronics,

erage,

Raytheon

the

and

finally,

would

patented

these deductions; and sorting and

torpedo

an

con¬

big

our

■

on

inch

bin perhaps
the pump is

If

away.

feeding too fast,

five

a

a

equipment, di¬
navigational

tronics.
Tanks

around

into

one

Submarine de¬

on

fire

accu¬

and
in.

misguided.

whose

:And

tube; and

a

in

Electric

list¬

elec¬

deserve'citation.

the

which

guided

companies

with any

Transistor,

to the electron

without

distinguished

and -International

sells

among

new

has, I believe,

mechanism

keep

the

most

into; every ohm and watt-bearing
field prevents their identification

re¬

common

Exchange

Raytheon is
of

of

electronics

Clifford Hemphill, a partner of

Finally into the office realm of

represents

value of the radar

man

from a
little round

a

the

of

complete

Hemphill Director

.

are

Exchange.

segments of the market for
op¬

away

pile of cement with

be

house,

the bookkeeper, the file clerk, and

(so

cost

electric

an

—

it

sort

This is usually

pump,

erated

car,

special

a

cleaner

vacuum

cement

if it

and

box

or

with

how

supply?

know,

barge

a

but

think

to

cement

you

unloaded

job;

landing

Thirty-five

total

five

Kremlin

the

Electronic

answer.

of

cent

revolving

bringing

stop

their

also

National

paving

a

ever

bulk

comes

is

or

got

answer.

point

moustache

it)?

the

are

hit

three

a

burning

these

seen

you

they

ing

a r y *

production. Its

producers
it

treatment

General

record

American

around 29.

the

on,

heating pad

you r

mix-trucks

foundation

Do you want a guided missile that

but

oven

electrically.

a

humidity and

a

six yards of concrete to a house

or

turn,

Electronics

before

the

i lit

m

distinctive

a

successor

in

thanks to

ator makes the pump

Power

:

thermo¬

a

up

off, the radio turns

trol box

but the introduction.

on

blanket heats you, the

en¬

croached

accurate

powered gimmick;

adjust

No
would

produc¬

Instru¬

shares

common

the American

on

trical

search and

burner

pops

necessary

graph records.
Then

oil

runs

toast

scraping is
turns

1953

Switching to

had

analysis,

more

an

house it

stat;
watt

for

scheduled

get

5,900,000

elec¬
tronics, Hazeltine Corporation has

diagnosis of disease possible.
you

the

of

traded

Military Electronics

making earlier and
If

ments, whose

tion.

chemical

the pioneer phase of this multiple
...

share

"Expanding Your Income"

of

mechanisms, and Beckman

weath¬

the

TV

on

the

492,000).

outfits have

are

sets

endeavor; touching upon certain companies which
appear to be on the beam marketwise.

Whenever

these—only

their

study of the expansion of electronics into almost

of

these

competitive storms,
soundly financed and should

By IRA U. COBLEIGH

A short

of

of

ered

To Captain Video
Author of

any

All

7

Name
Address.

Dean Witter & Co.

6

The Commercial and

(892)

Co.,

&

Bonds—Circular—Hardy

Pacific

Missouri

Financial Chronicle

Broad

30

South

understood that the firms mentioned will be

Homes

Corporation

Riverside Cement Co.

pleased

Stocks—Comparison

analysis of 14 leading bank
120 Broadway, New York

and

Government

of

Snyder

Sources of

and

Portfolios

Bond

Banks—Laird, Bissell
& Meeds, 120 Broadway, New York 5, N. Y.
Convertible
Issues
Analysis — Granger
&
Company,
111
for

Gross Income

Bros.

Street, San Francisco 4, Calif.

Stocks—Bulletin—White

42nd

Major Canadian
Co., 330 Bay Street,

Knowles

&

Also available is

revie

a

w

of Aluminium Limited.

New

Oil

York

50

Rockies—Brochure—J.

the

in

Hogle

A.

"

."

*

showing

and

National
York

_

Earnings—Tabulation of 45, leading railroad shares—
Francis I. du Pont & Co., 1 Wall Street, New York 5, N. Y.

Rail

Rails
&

is

14

on

duties

115 Broad¬

Haupt

&

Co.,

Mr.

Ill
in

Machine

Nordeman &

&

Co.

Foundry

—

Memorandum

cial

705 Travis

stein & Co.,

Broad

Associated

Taggart

Illinois

Loewi

&

Electric

Co.

Gas

&

East

is

Also available

special report

a

Mason

Digest"

are

States Shoe

Central

Inc.

Analysis

—

Chesapeake

Street,
on

2, Wis.
Mountain Fuel Supply

Power

Company,
Continental
pany,

Union

Inc.

—

Commerce

Analysis

—

Building,

Haupt

Co.,

&

Cleveland

Ohio.

&

Com¬

America,

Hiller Helicopters,

The Board

Kaman

Fiduciary Management, Inc.—Report—Eisele & King, Libalre.
Stout & Co., 50
Broadway, New York 4, N. Y.
Interstate Power

Co.—Memorandum—Hirsch & Co., 25 Broad
Street, New York 4, N. Y.

Buhl

Lincoln

Co.—MemorandunWWhite,
'
"

Noble

&

Co.,

Building. Detroit 26, Mich.' '
National

tenden &

Life

Company—Analysis—CrutCo., 209 South La Salle Street, Chicago 4, 111.

Co.—Memorandum—David A. Noyes & Co.
South La Salle
Street, Chicago 4, 111.

6, 1953 (Toronto, Canada)

Toronto Bond Traders

Associa¬

tion Twentieth Annual Dinner at

the King Edward Hotel.

the following members:
Clarence A. Goodelle;
Eastman &

William G. Lapham; Drew G. Eastman,

Co.; Alvin J. Grabau, Grabau-Buchman, and

Robert T.

McGurk, Stone & Webster Securities Corp.

April 12-15, 1953 (Phila., Pa.)
National Federation of Financial

\

of

York

New

Dinner

STANY

Annual

announces

'

at the

should be sent in by letter and
M. Zingraff, Laurence

NEW YORK
April 30-May 1, 1953
(St. Louis, Mo.)

reservations

that

Waldorf Astoria, Friday, May 8,

St.

M. Marks & Co."

insure

Texas

received. No later than

room

reservations phone or write to

>

Group Investment Bank¬
American

of

Association

ers

Spring Meeting at the Plaza HoteL

(Also specify how many
This is most important to

(New York City)

May 8, 1953

Security Traders Association of

quick and efficient service at the dinner.)

For
Union

how many want Fish.

Dealer#

Municipal

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

April 17, the names of the persons at each table should-be ?up-

want Meat and

Louis

Group annual outing.

check ($15 per person) to Charles

Tables will be allocated as checks are

annual

convention at the Bellevue-Strat-

Security Traders Asso¬
for the 17th

The Arrangements Committee of the

ciation

sixth

Societies

Analysts

ford Hotel.

plied for listing in the STANY Journal.

Insurance

Miles Laboratories
208

Charles T. Heaton, William N. Pope, Inc.
of Governors for the current year is composed Of

SECURITY TRADERS ASSOCIATION OF

Plastics
Chemicals, Inc. — Memorandum — Kidder,
Peabody & Co., 17 Wall Street, New York 5, N. Y.

Electric

March

Rollins & Co.
Trust Company.

Air¬

and Piasecki Helicopter Corp.

Dure/.

Kuhlman

Smith, Smith, Bishop & Co.

Karl B. Rollins, K. B.

Francis Q. Coulter, Syracuse

Secretary:

Helicopters—Study—J. F. Reilly & Co., Inc., 61 Broadway, New York 6, N. Y.
Also available are circulars on

craft Corp.,

Edward J.

14,

Charles T. Heaton

Q. Coulter

Vice-President:
Treasurer:

Doman

Investment sPield

In

&

Copeland Refrigeration Corporation—Analysis—Cohu & Co., 1
Wall Street, New York 5, N. Y.

of

in

EVENTS
Francis

Ill

Russell

Can

Co.

Vice-President

COMING

President:

Gottron,

Company—Analysis—E. F. Hutton
61 Broadway, New York 6, N. Y.

Gyrodyne

a

report—

Milwaukee

reviews of Nunn-Bush Shoe Company, Mid
National Aluminate Corporation.

Industries,

Vice-

Vice-Presi¬
director in 1941
a

1948.

—

Co. and

Maine

Assistant

1937,

1939,

&

Building, Dallas 1, Tex.

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

i

in

Harriman

Ripley, Mr. Cross

an

in

Executive

Company, and in the current issue of "Business and Finan¬
cial

Brothers

.

Company—Special

225

Ripley
formed

was

of officers of The Na¬

elected

dent

of

City Company and partners

Co. in Harriman

and

Bank

continued

Harriman

the time it

a group

was

City
Cross

joined

Brown

of

Mr.

National City Company

he

in 1934, at

...

.

'

Bakeries,

Sanders & Ncwsom, Republic Bank
Central

,

until

by

Co.; this office
in that year

&

later

National

York.

with The

held at the Hotel Syracuse on Jan. 19, the following officers were
elected for the coming year:

Co., 31 Nassau

s

.

.

in

National City Company,
banking affiliate

The

New

Company—Analysis—J. V. Manganaro Co.,
" •
V

Street, New York 4, N. Y.

Chronicle"

investment

President

.

Campbell

The

the

At the annual dinner meeting of the Bond Club of Syracuse,

Halsey

acquired

by

Street, New York 5, N. Y.
50

W.

was

121 South Broad Street, Philadelphia 7, Pa.

Baltimore Transit

espe¬

in the New York firm of

1916

N.

tional

Audio Devices, Inc.—Analysis—Peter Morgan &

bank

experience

Mr. Cross entered
investment banking business

in

Company—Analysis—Gerstley, Sun-

Gas

the

to

business,

Financial

and

the

Notes

NSTA

Street, Houston 2, Tex.

Louisiana

Arkansas

i

Bruns,

brings

securities

his early years,

Clayton—Memorandum—Rotan, Mosle & Moreland,

Anderson

f

—

Cross

the

of

Co., 60 Beaver Street, New York 4, N. Y.

Cross

in

cially in the investigation, design
and purchase of security issues.
After graduating from the editor¬
ial department of the "Commer¬

BOND CLUB OF SYRACUSE

American

C.

Milton

head¬

than 35 years of

more

»

*

the

at

quarters

Warner Iludnut Inc.
sjf

ab¬

from

Harriman Rip¬

—Simth, Barney
Also available

117)

No.

ar¬

of

sence

Wall Street, New York 5, N. Y.

memorandum

a

(bulletin

1953—Analysis

in

Co.,

leave

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

4, New York.

has

bank's

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

Cross

,

up-to-date com¬

an

in

bank, Mr.

ley.
He
will
^assume his

.

Broadway, New York 4, N. Y.

Over-the-Counter Index—Folder

ap¬

Washington about April 1.

Railway—Review—Ira

Central

and

aceept

the

Broadway, New York 6, N. Y. Also available is a memo¬
randum on Maine Public Service Co.

Co.,

&

To

New York 6, N. Y.

way,

5, N. Y.

Gas

and

Street, New York 17, N. Y.

Wisconsin

Bank

Recon¬

struction

Carbon Corp.—Complete 1952 annual report

Wheeling Steel—Memorandum—Goodbody & Co.,

Equities—Bulletin—Stanley Heller & Co., 30 Pine Street,

Oil

tional

ranged to take

curities Corp., 25 Broad Street, New York 4, N. Y.

Industry—Bulletin—Ross,
Toronto 1, Ont., Canada.

of

pointment

Si-

Union Electric Co. of Missouri—Memorandum—American Se¬

Metals—A

Director of

Development.

—Secretary, Union Carbide & Carbon Corporation, 30 East

Mississippi

& ' Company,

a

Interna¬

e

for

Engineering Co.—Memorandum—Baker,
Buhl Building, Detroit 26, Mich.

&

and

Ripley & Co., Inc., has

Operations
t h

illustrated booklet describing the corporation's products

and

Sutro

—

Valley Building, St. Louis 1, Mo.
Light

Co.,

&

Place, New York 5, N. Y.

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

&

Insurance

&

Union Carbide

Analysis of the domestic copper industry

—

Controls—Memorandum—WalSton

Executive

Cross,

been named Director of Technical

10 Post Office Square, Boston 9,

Ltd.—Memorandum—Philips & Co., 40 Exchange

Tri-Tor Oils

New York 6, N. Y.

Broadway,

Harriman

Analysis and review of the Cement

New York City

17

—

Copper

Tool

monds & Co.,

C.

Milton

Vice-President

Boulevard, Chicago 4, 111.

Jackson

5, New York.
Breakdown

By International Bank

Aetna Securities

—

Airways Inc.—Bulletin—Daniel F. Rice & Co., 141 West

Slick

Bissell & Meeds,

stocks—Laird,

Circular

—

Mass.

Robertshaw-Fulton
265 Montgomery

Bank

—

Industry—Lerner & Co.,

the following literature:

send interested parties

to

Salle

La

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

Recommendations & Literature
It is

Inc.—Analysis—Dempsey & Company, 135
Street, Chicago 3, 111.

National City Lines,

National

Thursday, February 26, 1933

..

M. G. Cross Named

Street, New York 4, N. Y.

Dealer-Broker Investment

.

New York dinner at the Waldorf-

Daniel D. McCarthy,

Astoria.

Securities Corp.

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

of

Stock

Exchange

Firms Board of Governors Meet¬

Piasecki Helicopter
Hiller Helicopter

STOCKS
*Prospectus

Primary

on

Quoted

Sold

Bought

HELICOPTER

ing.

Gyrodyne Corp.

*New York Airways

May

Slick Airways

13-16,

1953

inc.

America

Spring

Y.

Special Bulletin

Markets

on

74

Sew

York

Stock

Exchange and

(Cincinnati, Ohio)

Municipal Bond Dealers Group
of Cincinnati annual party at the
Kenwood

other Principal Exchanges

Country

Club.

•

Trinity Place, New York 6, N




at

Request

daniel f. rice & co.
Members

Security Dealers Association
*5

meeting

the Greenbrier Hotel.

Troster, Singer & Co.
N.

Sulpha*

Investment Bankers Association
of

Request

June 25-26,1953

Members:

(White

Springs, W. Va.)

141

W.

Jackson

Blvd.

521

Fifth

Y.

Chicago 4

-

-

1

'New

York

Sept 14, 1953 (Sun Valley, Idaho)

Ave.

City 17

"

;.q«

*

National Security

Traders Asso¬

ciation 20th Annual Convention,

to

Volume 177

Number 5198

The Commercial and Financial Chronicle

...

(893)

cover

SYLVESTER

GARRETT*

Chairman, Board of Arbitration

it must be set forth that certain

group

inevitable characteristics of group

a

bargaining

so as to

United States Steel Corporation and United Steel

J

It is enough to

First, this bargaining technique
permits a pooling of the economic
strength of the various employers

Multi-Employer Bargaining
By

all of them.

mention three.

of

Workers of America, CIO

achieve

relative equality
power
with
the

bargaining

thus

panies

able

are

to

avoid

whip-sawing,

or picking off more
employers in the first

vulnerable

instance,

with

later

pressure

on

the rest to follow the leader.

Second, group bargaining permits development of better facilities
for
intelligent

may be most harmful,

difficult, for participating
agements to live with.

or

a

union representing the
employees
affected.
The participating com-

Asserting multi-employer bargaining in some cases presents
definite advantages for management, despite opposition to
it,
prominent labor-manager arbitrator lists as most notable advan¬
tages: (1) it permits pooling of economic strength of various
employers so as to secure relative equality in bargaining; (2)
it makes available better facilities for
intelligent bargaining;
and (3) it furnishes a clearance channel for information affect¬

9

man-

bargaining. They came to
complete stalemate with the'
union on the question of general
wage increase.
The parties were
about

5c

wage

increase, and it was clear
strike would ensue unless

The long and the short of it is
that the individual
management
loses a certain amount of freedom
of action, or initiative, by participating in group bargaining.

an

hour

that

a

the

management

apart

offer

the

on

was; in-

creased.
After the group had decided

to

staPd Pat> and had so advised the
union> and everybody was waiting
initiative and ingenuity in dealing °ver the weekend for the strike
with problems affecting cost. La- to break Monday, the spokesman
bor relations is one such problem. for the management group could

Management succeeds or fails
in iarge part on the basis of its
.

not reslst the desire to achieve a
settlement for his own company
alone. He proceeded shortly beall of their
among which is disregard for inequalities in individual concerns
knowledge and draw
fore the strike to grant a general
upon
skills
of
and in regional economic conditions.
negotiators and level of rates of pay in the plant, waS:e increase 4c an hour above
other
specialists that otherwise as compared with other compa- what was satisfactory to the group
Fortunately, the title to my talk ment. This bare statement will would not be available as a prac- nies, even though the rates of pay at large. As a result, his company
continued to
today is limited to a considera- surprise many here today, and ^ca^ matter.
are an important aspect of cost.
continued to operate, while the
tion of practical phases of multiperhaps excite some, yet it is
Third, it permits continuous
As soon as a group of employers others took a strike.

ing labor relations.

Reveals also there

employer bargaining, and lays to
the

side

one

versial
cal

politi¬
social

and

aspects of the
broad

By

subject.

way

further

or

topic
dis¬

Sylvester

Garrett

be deemed a reflection of my

from

an

arbitrator in my

position,

derived
t
miffht.
1
might

as

or

ovnorionnn

r™,

experience

any

had in

have

can

pool

settlements

which may affect
baslc contract issues in subsequent
bargaining conferences. In some
instances, as the needle trades or
hotel and restaurant field, a single
representative may be retained by

evil

(ff

the

T

Relations

ahnT

Art

in

nerhaDs trne that

.

the companies to handle all serious erieVances onTheV behalf"

«

8

011 Ulen behalt-

These advantages of group bar¬
vehemently. A large number
this view, which is re- gaining in some situations may be
fleeted currently in; a bill
pre^a+^ aJi*eJjj^man,^ei^enV With out them some
employers, t—
because
sented by Representative Lucas in
of their size or situation in the
still hold

might
say
regard

present

management group

view

in this

as

social

r
management
representatives would have stated this

ment, and
nothing which

viewpoint

itTs

a

" At the time

articulate

manage¬

can

consideration

1947

as

menace

Management

the standpoint

I

"a nublic

of

cussion from

of

The

^U forms^of TuW-em-

Dlover bargaining

my

assigned
requires

disadvantages,

demonstrably true on the basis of contact and clearance of informapractical experience of many em- tion as to grievances among the
ployer groups.
participating employers as to de-

covering

of

qual¬

ification,

bargaining,

Good

industrial

pay

Set

relations

together to

should

off in

better unit cost over
the long run. Ofttimes this is true
without regard to the particular

lay

the

ground-

Basic Problem of Submerging In¬

work for group bargaining, or
dividual Company Needs
when an individual employer conThis instance merely serves, to
Many management spokesmen velopments affecting labor rela- siders joining an existing bargainemphasize the basic problem of
look upon "industry-wide" bar- tions.
Notably, it permits group tng group, the pioblem of loss of
individual company
gaining
which thev conceive as consideration of major grievance individual management initiative submerging

contro¬

more

are

.

connection with the

^

the Congress only
ago. It is not

a few weeks
^

needs

comes to the fore.
How many of us suppose, for
example, that the famous General
Motors settlement in 1948 involvmg an annual improvement factor

of

and desires

acceptance

Numerous

in the

interest

group

policy.

of

other

instances

of

a

breakdown in group bargaining in
recent years may be found.
It may be unnecessary to dilate

based on productivity, increases
would have been possible if all

upon

of

few of

the

had
and

automobile

been

manufacturers

bargaining

therefore

there

as

a

had

this proposition here, but a
the subjects of collective

group,

bargaining

to

lighted in group negotiations may
be mentioned.

be

group acceptance of such a fundamental change in bargaining pol¬

where

this

is

high-

Many are prone to assume that,
of all collective bargaining
issues,

icy.

Thus, before joining in any
bargaining
venture,
the
participating companies must de-

group

the

matter

of whether

not to
ar®a 0r 1}nd^s^r^' ?° .n.°* 1?a1^
eni°y collective bargaining at all Parucipating companies must de- grant a general increase and de' dX s?andTm»v he on major issues. In the Net York
not only who their principal termination of the amount of such
? clone so and it may be
spokesmen will be, but also how increase is rpln+ivpiv
is relatively a niAar.h,,+
clear-cut
Dredicted that the debatp wi11 '
Metropolitan area, for example, much
P £ £d
there are said to be about 4,000 --v- authority they will sur- problem.
------.
partisan discussion of this is
truckers employing members of
gl0UP
m
V
Suppose, however, that a group
P.
,
of five or six manufacturing con¬
™dd??it£,!1 " the Teamsters Union. Most are decisions.
^
a,Lnpd ?ont hnt
<*uite small. If they did not bar- ^The.con hct between the needs cerns are bargaining jointly and
their
operations are located in
might be thought inconsistent with gain through an association, they

d|b*

t

thi

my purpose
br0ad

today to

mSn

Monv

or

a

,

Most of my knowlviews on the subject
from
the
years
1946

gteel industry.

and

edge

derive

through

it

when

1949

my

was

igg&.&Ett.&fSZ

gL^and'fh^eroun^olfc^fre6

fi? sise

W present position as arbitrator.

study of the subject for Advantages and Disadvantages of lltt]e choice but to accept settleSchool in collaboraMulti-Employer Bargaining
ments reached by a handful of
tion with Dr. L Reed Tripp, now
The P o s s i b 1 e advantages of
pared

a

the Wharton

at the University

of Wisconsin.

group

bargaining from the

^X^altefto S,*™5
called to^ijaind easily.

man-

So much for1* the
f

impos- agement viewpoint are numerous,
sible to provide answers out of but we need not attempt here to
band to all present who may be
considering multi-employer bar¬
Of

course,

it would be

gaining as to whether such a
technique of group action is ap¬
propriate to the needs of one's
particular business. Nonetheless,
the practice of group bargaining
by management in most cases does

announcement
"**

On the other

is under

no

side

of

viewpoint—real

tential—which

":

■'

discussion.

It

that

illustrated not
oTSdSefnV^a^tu^ta
This

a

was

vears

nicely
aeo

given industry

as an

when

were

offer to sell

a

.J

number

or as a

solicitation of
-

an

offer to buy

on page

any

'
26,

decision

as

1953

Maryland Casualty Company

to

whether the technique is suitable

in

a

given concrete

Common Stock

case.

(Par Value $1 Per Share)

Complaints Against Industry-Wide

Bargaining

4

Before

getting to the heart of
the matter, however, let us get
one thing clearly in mind. There
have teen many criticisms and
complaints voiced in recent years

industry-wide or multi¬
employer bargaining. Many
of
these upon objective considera¬
tion, appear to be complaints not
against this particular technique
of bargaining, but
rather com¬
plaints against the practice of col¬
lective bargaining itself.
against

In

multi-employer
therefore, one must

evaluating

bargaining,

Holders of the
scribe

at

Company's outstanding Common Stock are being offered the right to sub¬
$23 per share for the above shares at the rate of 1 new share for each 2l/2 shares

held of record

on

Eastern Standard

distinguishing

between

on

March 12, 1953.

The several Underwriters have

subscribed shares

of Common Stock

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

set

forth in the

Prospectus.

The

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

always bear in mind the necessity
for

•

February 21, 1953. Subscription Warrants will expire at 3:30 P.M.,

Time,

Merrill

those

Lynch, Pierce, Fenner & Beane

aspects of such bargaining which
are

inherent

in

the

particular

itself rather thsrv inherent
in
collective
bargaining
as
a
means
of establishing the basic
terms and conditions of employ¬
ment for a business enterprise.

-process

At

the

without

outset, it can be stated
reservation

bargaining in
definite

that

Corporation

Hornblower 8C Weeks

Lehman Brothers

Blyth 8C Co., Inc.

group

Kidder, Peabody 8C Co.

Paine, Webber, Jackson 8C Curtis
Harriman

Ripley & Co.

Lazard Freres 8C Co.

Incorporated

some cases presents

advantages

for

manage-

•An address by Mr. Garrett before the

American
<cago,

The First Boston

Management Association,
III., Feb. 16, 1953.




Chi-

Smith, Barney 8C Co.

Stone & Webster Securities

Corporation

..

may be in the

Continued

engaged in

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

sub¬

.e

* Still another

442,098 Shares

con¬

a

which will
anart

FEBRUARY

them

be

may

facilitate

arouD

be isolated for

can

sideration today of some of

will

ledger

The

±n tpar fbp

manv

circumstances to be construed

po¬

or

the

+end

areas

ject to the different pressures of
each such area. For
example, one
plant may be located in the South,
wc wtatcu m uic ouum,

~

present certain basic advantages
and disadvantages from the man¬
agement

affirmative.

members of

different labor market

of

14

10

The Commercial and Financial Chronicle

(894)

No Need lor

and an outstanding leader in the extent as the alternative to classWithout CIO. Carey has proposed the for- war, becomes a gamble, the outentering into a detailed analysis mula
to the General Electric come of which largely depends on
of prevailing wage scales, it is Company and other firms in the the personal outlook or bias of
common
knowledge that house electrical industry.
the arbitrator,
painters, plumbers and teamsters
Tbe crux Qf the General Motors
Is there a way out? Can arbi-

Wage-Price Spiral!

j

takes
immediate
solution to wages outrunning workers' productivity and thus
leading to a continuous inflationary trend. Holds, wage policy
based on productivity factor, similar to General Motors for-

|

mula and set

|
j

which

his

In

and

article

interesting

"Wage Policies Since World
the

in

II"

Dec.

issue

4

the

of

""Commercial and Financial Chron¬

icle,"

I

Slichter

sor

of
ci

wages

i t

effect

ary

trend

present

Slichter

terfering
wages

effective

stop

N.h.

re¬

or

With few
exceptions, employers have found

to

it easier to follow the

When labor was largely unor¬
ganized and wages of the un¬

resistance

skilled

thinks "the inflationary bias
be reduced by

He

public.

unorganized

less,

could

the development of

stronger federations of labor cap¬
able

of

out

working

for

rivalries

keen

leaders

competing for popularity.

is

concludes that

Slichter

Professor
there

union

between

no

prospect for stopping

semi-skilled

and

labor

unions

a

demands

enact

finally
in

statute

Federal

later

and

books,

c a m e

applicable

ally rising wages, except as it may

women

and

be offset in part by "new

inflationary effect of continu¬

inflation and

•on

checks

deflation.",

on

only

children

but

In the course of

which

3%

leaving

it

vances

beyond

the

gradually

been

raised

of

modern

industry—since

bare existence

a

to

labor

have

by its ceaseless quest for

ers

ventions of .more and more labor-

they

saving

per

lias

machinery

brought

reduction

in

methods

and

about

a

continuous

of

costs

production

for

now

amount

75

to

a

minimum of
office

one

fluctuations

on

to

increase
.j

proposal

was

by

accepted

was dccepiea

pioposdi
P r

such

to

union

uy

intelligent and

to

i d

e s

t

e n

extent

an

This

terms.

it

that

into

enter

a

on

these

a"

reversal

is

the

of

led

five-

general
the

of

prevailing type of short-term

cents

con-

tracts which offer
to call for

dollar.

assured

now

of
re-

as

of Vh

general

a

the-opportunity
frequent pay raises. •

The formula has

boys

goods

of .wages

year.,contract

by

hour, while labor is pressing

With

based

the

Federal and state enactment until

in¬

and

stability to

brought peace

industry which

an

had previously gone through some
these

Because

have not
such

securities are believed to be exempt from registration they
registered with the Securities and Exchange Commission; but

been

exemption, if available, does not indicate that the securities have been

either approved
has
considered

or

disapproved by the Commission

the

accuracy

or

completeness

or

that

the

of

the

Commission

statements

in

this

communication.

;

fierce conflicts. It
stroke

the

on

Value

$.50 per Share)

'. "

•

■

-

Improvement Financing Corporation

for i continued

tion

of labor

of the business established in 1946 by Mr. Mortimer L.
(President of the Corporation) to construct various home im¬
provements and carry time financing in connection therewith. Mr. Schultz
to

the

Corporation, monthly liquidating receivables in

of $100,000 in consideration of the issue to him

or

his nominees

of $100,000 par value of the

Warrants

to

increased
tion

to

resulting
in
productivity; an opposi-

which

had

Corporation's Class B Common Stock and
purchase at $2.00 per share 150,000 shares of its Class A

Common Stock.

wage

policy

on

$60,000.

7?e
trie

Expenses

$100,000

in

or

Commissions 8.30

connection

with

per

offering

Share

not

or

aggregate

an

to exceed

of

815,000.

$225,000, if received, .supplemented by incoming,

of- the

payments

on

Corporation's presently owned receivables and by the
proceeds of loans against such thereof as-may be hypothecated, will
provide
the

Corporation's working
,

These securities

capital.

are

offered

as

a

speculative investment

The offering circular is available from the
undersigned

or your own

Member of New York Security Dealers Association

the

The

wide

who

preached

and

prac-

new

formula

attention

in

is

both

attracting
of

camps

industry.

General

Motors stole the show from U.
Steel

which

had

hitherto

pattern of periodic wage
ments in

Union
same

the
are

American

set

S.

the

adjust-

industry. Not

Whitehall 3-2181

determined

to

have

the

formula adopted throughout

industry, but other industries
studying the possibilities of

adopting
„




man-

ticed "the class struggle."

Underwriter

NEW YORK 4, N. Y.

the part of

only is the Automobile Workers
~
broker

GEORGE A. SEARIGHT

SO BROADWAY

in days
less enlightened

unwittingly played
hands'of leftist labor

American

DisC0Pnts

a

had

agement
leaders

resultedfrom

experience

by when

into

improved labor-

machinery

g'one

Schultz

transferred

progress

v

i

saving

unfortunate

PRICE $1.50 PER SHARE
An outgrowth

lias

General

from under the old' opposi-

away
'

(A Delaware Corporation)

excess

statesman-

of

rising earnings. On the other

_

Home

brilliant

hand, basing the increase* on rising productivity takes the ground

CLASS A COMMON STOCK
(Par

part

a

Motors.'It responds to labor's asand

200,000 SHARES

was

of) industrial

ship

pirations

NEW ISSUE

industrial

achieved,

which has been interrupted by the
two

by

world
the

policies

pursued

Administrations

aggravated

and

wars

inflationary

deliberate

Democratic

by
for

wage

?•

U®!X, ™ J\

Under

.

+

the

restrictions

the

new-

T

T™

urincinle

!

of

,

adjustment. The latest

re-

cruit in the labor camp is James

° tir^n^nt

£
^

"

,

imposed

of

,,

Pu*"cnasing

.

P nsion becomes
oncern to every

,imrlrop

worker.
If

*

th«

nurcha'sine

the

.

3
Congress

were to lay down
principles for the guidance

certain

Wages Under Arbitration

ira

*
reservation

decades,

two

f favnrah?rS now beirig adopted
?
avoiably considered by lead* f, d ? es and umons, creating

_-ni°
^exi^e
ceiling which rises with the rise
^.w

-in productivity, the country could
be

cured

of

the

evil

chronic

of

by the Wagner Act and continued

inflation caused by continuous inin the Taft-Hartley Act, manage- "discriminate wage advances
If
ment has lost its old powers to wage increases were to come out
resist

union

wage

demands when

0f

fore
to

arbitration

than

before these laws

Arbitration

that

there

has

has

noed

no

so

fast
to

still less to

& , wiAn ThprP
subject it to any regulation, ihere

'

.

v£ntlng
paralyzing effects
SlITf 1uflatl°^°± the klnd
0 a ^e; They can do so
without jeopardizing labor's gains
^

i+hn,

.

■

alreadv achieved

?ertlring
-in

labor?s

that

whh

,creased

and

a

without

contSuous

real income

incre

is

so

in:

rise

lone

as

derived from in-

Droductivitv

to guide him in his decisions.;.
Although the law (in New York

_*
!

c„

_

H. 1. STONE

.

;
;

Macuson Ave,

and other states) makes his) decilegally binding from jwhich

would

nrirv>c

f ' g P j.?

.

are no

81ons

there

raicin'g

enVlabor and the govhave ;
meaas

case

time

output

of

enacted.'

grown

been

no

resort

the

was

were

its workings,

study
j

to

readiness

greater

increased

bp

backed by strikes. There is there-

legal qualifications, as in
Union, Walter Reuther. It has the case of judges, which a man
brought contentment and peace must possess to make him eligible
among the General Motors, workto serve as arbitrator and no laws

ad¬

the introduction of steam—which
new

increase

The

level,

win

to

quart-

down in ac-

or

up

(1)

tor

by ,the U. S. Bureau of
Statistics* and (2) an an-

,,

minimum,

trend

set at

provides

the aggressive, but

first

at

were

reversal of the historic

means a

wage

from

in productivity.

time, the mini¬

rates

ing for the future of the country.

not

that

the general public indirectly?
H was labor's demand for - a
legal minimum wage that caused.
the taking of the revolutionary
s*eP °I regulation of wages by the,
government. Now that the power
°I the government to legislate in
that field has been firmly estab-,
lished, it may be asked why it
should not be used to prevent in¬
Hation from which workers as
consumers are the first to suffer,
As old a§e retirement pay from

should be able to resume
the historic trend to lower prices

*

with

far-sighted

It

is

productivity

formula

Labor

to

mum

conclusion

in

to year

nual

in

reassur¬

This

With

.

wages

vear

This

ported

all

to

to

prices of consumer

be-

and

not

Slichter calls

which Professor

to

attention.

(1)

through

cordance

workers.

the

rising

erly intervals

imbed¬

became

state

real

in

decline

a

the adjustment of wages at

spite of strong judicial opposi¬
on the ground of unconstitu¬
first

means

the large and growing volume of
wage
adjustments through arbitration?

year

tion

ded

greater

to
sure

steadily growing income and

So much for wage fixing over
the bargaining table. What about

-

espe¬

was

tionality,

problem

wage

object to assure labor

increase

found necessary to
minimum wage laws which,
it

a

and (2) a
standard
of

vear

demands

their

wages,
in

workers,

methods.

quires an
incentive
productivity as the
to

improved
Labor ac-

of

sabotaging

production

labor's participation in the benefits resulting from

and children, to en¬
for higher

women

force

its

living

the

for higher wages on

unorganized

constructive

a

the

continually

plea for "a living wage." Because
of the inability of large masses
of

about

through rising prices,

were

based their

usually

the

on

production front in the plant over
labor's
overt
opposition to and

progress

the GenCompany in an effort

of

against

low standard of living,

on

national cially

a

the member
unions," though he admits that
there' is "no early prospect" of
such
at
development amid the
policy'

wage

I

based

bring

for

"

line of least
granting the de¬
mands of the unions and passing
on the
increased cost to a help¬

demands

union

dampen
money.

proposed to the automobile workers union a dual formula having

Bargaining

by

to

more

solution

Wages Under Collective

flationary wage trend.

the

eral Motors

cerned with in the long run.

Stone

this in¬

verse

the rise of real
which is what labor is con¬

battle

daily

the nightmare of chronic inflation

outstripped the
cost of
living, this

years

Facing this situation,

with

adjustment and

vvage

endiess

already granted

in wages

past

failed
for

de-

was

in

lieve that means

checking the present inflationary
effects of rising wages without in¬

ji o

that

tration be put on a more reliable
basis, comparable to a court of
justice? A judge functions strictly
within a framework set by law.
His decision usually affects only
the parties involved in the case,
How much more is such proeedure warranted in the case of
arbitration, the outcome of which
usually involves hundreds or
thousands of people directly and

economic security. Last, but not
least, a general adoption of the
fromula would rid the country of

the

rise

prices.
1 Professor

force likely to

is

chance to

a

cost of living. But
pointed out in inafter instance that the in-

it

stance

however, I be¬
are available for

the

based on the argument

rising

when

in

and

Roosevelt

the

by

was

the

of

policy

inflationary

Administrations

Truman

generai

tbe

covert

the

followed

Professor

with

the

to

a

contract.

new

Under

agree

as

for

contract,

a

condition of entering into

a

as

today.

fully

of

unions to demand a wage increase,

creases

sees

result

The

industry

of

expiration

It

mand

on

order.

furnishes

wage
a

get rid 0f the periodic headaches

Professor Slichter,

inflation¬

s

nomjc

into

living wage. Yet it has

the long run

and

pressure

fits

jt

formula
dynamic eco-

dynamic

a

which

fixed custom, upon the

to labor as to the rest
of the consuming public. Unlike

un¬

ing

a

and the unlikelihood of
any of the forces at work today
being capable of stopping this
unfortunate trend, as harmful in

union

e r

to

policy in

wage

dynamic industry by substitut-

a

considera-

on

static

a

the

management

of

attempt

maintain

a

of wages

rising trend

0jd

become

Slichter

presents a
penetrating
analysis of the

short

a

tions of

masses

Profes¬

acquired in

real

is this historic process
of modern industry that has made
the luxuries of yesterday the mat¬
ter-of-fact
possessions of the

War

be

demands

its

bases

concurrent increase in

a

wages.

on

trade^calling for skills formula is that it abandons

can

now

resultant lowering of prices

with

Financial Chronicle:

,

command annual earnings denied teachers and college
professors
who have
to spend
years in study to qualify for their
positions. Labor today no longer

time,

fering with the rise of labor's real income.
Editor, Commercial &

levels.

higher

and other

by Congress, could halt trend without inter¬

up

much

to

issue with Prof. Slichter's contention that there is no

•

price of his product. Thus, arbi-

tional United Electrical Workers tration which has been growing in

week, all grades of labor and skill
have
automatically been raised

Dr. N. I. Stone, Consulting Economist, New York City,

}

j

Carey, President of the Interna^

40-hour

of $30 for a

minimum

a

TO THE EDITOR:

LETTER

Thursday, February 26, 1953

...

.^w York City 17, N. Y.

there is no appeal, he has only *eDwo*
hjs conscience to answer to for ' lit r ■ II
J
A
these decisions. This has had some . W GlCtl t1G3(IS (jOIMtti ■>
s?rious consequences.
,
; • During the past two decades we
/ .
pOf If, Ai Oi Ui
have repeatedly had decisions ~
.
,
• ■
.
.
/
#

rendered in wage disputes on railroads and public utilities raising

Carl .Stolle, Chairman of the
,Roard °/ Governors of the Na-

annual wages by many millions tional. Association of Securities
of. dollars in cases where the fi- Dealers, Inc. announces the apnancial data submitted by man- Pomtment ot
agement indicated beyond per- i, ® l
h
adventure; that the companies ine icn as
volved could not comply with the
q°i
decision of the arbitrator wjthout
2
going into bankruptcy. In such -Jinn mpames
+v.a
o.
c

cases

the

T«+«v.c+v.f^.

Interstate

Commerce

Committee."

Commission or state utility com- M
Welch
is
missions v^ere forced to grant rate executive
increases to save the companies yPresifrom insolvency. The arbitrator, *dent
and
holding no public office and re- Treasurer of
sponsible to no one, thus acquired Wellington
or

assumed

the

power

of; indi-

rectly raising rates to be paid by
the Public, a power which had

heen conferred by legislative acts
011 ^e&Ponsible public bodies—
^al1? hoa}'ds< oot single md1v1 ua s„ ^Urd
^en. decisions

•Fund>
c Q

mittee

in-

Joseph

E.

Welch

,cludes Hugh

^ Long of Hugh W. Long and
company, Inc.; Harry I. Prankard jl, of LordT Abbett & Co.
,of New York; William F. Shel-

well-defmed principles -laid
own m
w*
4
ley

of
Vance, Sanders
&
In industries, outside of utili-.Company; S. L. Sholley ol ino
^es' which in normal times are Keystone Company of Boston; and
legally" free to ttaisfe^or lower .Ward L. Bishop of American
Prices at will, the arbitrator" has Funds Distributors, Inc.
had even less cause to worry
about the effects of his decisions.
Wlttl Lawrence omari
Being human, he is tempted to
(special to the
chronicib)
follow the easy path of pleasing . • NEW ORLEANS,- La:—Donaia
labor

recoup

and

letting the employer Mi Willem is now with Lawrence
himself by boosting the F. Smart, Hibernia Building.

Volume 177

Number 5198

.

.

.

The Commercial and Financial Chronicle

(895)
States.

This

against, the
by reason

ROBEKt

By

G.

STOREY, ESQ.*

ment

President, American Bar Association

'

extension of Federal power over intra-state business

businessmen

our

nulli¬

as

institutions
form

of

cial

and

tions

are

cred

and

Our

legal

finan¬

With
I

institu¬

un¬

these

not

the

der

•'

services

clients and

the

only

not

in

their

financial

and

to

'interpret
great
issues
to

The

slave.
of

Robert

time

our

is

half

rected

against

Today

I

briefly

with

aspects

in

The

I

half

and

have

spoken

like

to
speak
about certain
freedom faces

you

which

from

the

institutions.

our

would

is

within

the

own

individual

obligation of
its

citizens,
responsibility of

first

citizen

every

our

of

first

government to

every

is

to

that

see

his

government meets that obligation.
For without individual freedom

society is worth having.

no

Those

aspects

freedom

which

society

of

the

the

of

and

basic

members of that

any

protects

rights of the

society.

rights;
property

rights. The quality of any gov¬
ernment depends essentially
upon
the status of such rights in its

freedom,

abstractly

absolute

in

consid¬

value,

the

civil and property rights which it

comprises assuredly
relative.

are

are

not. They

Restraints

be,
and properly are, applied not
only
to freedom of contract and
private
property, but also to freedom of
speech
is

and

free

the

manufacture
no

man

may

cate

from

atopiic
open

a

man

States

bombs;
radio

Federal

Commission.

nessmen

not

the

No

United

casting station without
cations

may

publication.

in

a

to

and

broad¬

of

the

Communi¬

While

busi¬

compete; they may
in "unfair methods of

competition"

or

trade practices."

pursue

"unfair

Furthermore, to.

engage in business of one's choice

is

to

subject one's

midable

array

self

to

for¬

a

of legislative

so¬

allocations,

priorities, and what-not—all
essential

'to

the

con¬

public

Welfare.
No

can

attain professional

standing without having met the
qualifications imposed by the law
of the state in which he intends to

practice. The public is entitled to
know that one holding himself
out

as

doctor,

accountant,

or

lawyer, is qualified both in knowl¬
edge and
*From

in

chosen

men

and

profes¬

handicap

of

character

to

handle

address bv Mr. Storey at the
Trust
Conference
of
the
American Bankers Association, New York

In

law¬

every

profession.

one

does

profession itself.

times

is

fronts

all

the

danger which

businesses

and

That is the

con¬

profes¬

spreading

tendency in the world

to

substi¬

relevant

Lawyers and the Constitution

One

perhaps

than

channels

to

of

the

in

that
did

action

limita¬

significant de-.

modern

growing reluctance

of-the

courts

constitu¬

of

rearrangement

to.invalidate legis¬

Tenth

ment

reserves

the

people

are

not

States
recent

Tenth

to

the

those

powers

delegated
by

the

years

Amend¬

states

the

to

or

which

Constitution,

in

that Amendment has

to

have practical effect to
Federal control of business.
The power of
Congress to regulate
limit

order

When

to

United

with

commerce

of

channels,

ture,

where

even

of

properties.

not intended for, or

reorganization

of

it

corporations.

is

considered

of

do

that

interstate

welfare"

commerce."

(Wickard

enactments,
eral

the

to

be

the

by

of

controls

upon

stricted
said

the

courts

government

to

that

to

business

in the United States is the attach¬
ment
of our people to the free

institutions of this

nation, founded
in the basic law of the

are

That basic

law is

the United States,

instrument drafted
a

the Con¬
an

principally by

lawyer, James Madison,
adopted in a Constitutional

young

and

Convention

than

more

the members which
You
is

may

that

speak

half

were

over

past

,

of

extensive

commerce

two

by

judicial
controls

imposed

decades

by

in

Congress.

Thus, in American Power
Light Corp. v. Securities and
change
the

Commission,

the
and
Ex¬

decided

by

Supreme Court in

1946, Mr.
Justice Murphy, speaking for the
Court, said:

"Congress, of
doubted. power

course,

under

has un¬
the com¬

under

clause

of
or

that

type

of

In

this

In

that

limited

The

case,

concept
court

to

in

the

was

in

After

the

their

.The Nebbia

nificant

the

and

Nebbia

mill-owners

rent, to

choice,

own

pride of consti¬

early

in

arose

tutional

community. It con¬
post office, grocery store,
suitable for meetings.
National
Labor
Relations
ruled

that, since the room
readily available

only

meeting place

for

unions

in

refusing to rent the

contrary to

United

mill.

the

quiring
to

sig¬

a

rule

the

The mill-owners

that

order

them

the

of

unconnected
a

private

teeth
In

to

union

invasion

of

the

of

rent

or

-

.

the

exceeded its dele¬

Most of

great

John

Madison

of

the Board's
"to

permit

the
use

the

Court
of

the

and

established

country
tations

tion.

the

'

r

.

the

To

Executive

in

:

*

To be

are subject to the limi¬
imposed by the Constitu¬
England it is still true

is

$150,000 semi-annually September 1, 1953 to March 1, 1968, inclusive

supreme.

guaranteed unconditionally

as to payment of principal
Illinois Central Railroad Company

this

Priced

to

yield 2.30%

and dividends by

according

to 3.15%,

to

maturity

In

the United States legal
supremacy
is to be found in the written Con¬

Issuance and sale
The

stitution of the United States and,
of course, in the constitutions of

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

such

the several states.

The

Constitution

States

constitutes

of
a

the

United

compact

HALSEY, STUART &, CO. Inc.

be¬

tween

the people of this
republic
and their government
pursuant to

R.W. PRESSPRICH & CO.

which

WM.

an

the rights of

men

freely to

hold

City, Feb. 11, 1953. Mr. Storey is Dean,
School of Law. Southern Methodist Uni¬
versity." and President of Southwestern

clearly recognized. No man can be
deprived of property without due

Legal Foundation, Dallas, Texas.

process

property

business

of

of

and

their

law

to

own

in

"

E

POLLOCK

&

FREEMAN & COMPANY.

CO., INC.

GREGORY

THE ILLINOIS COMPANY

&, SON

.

IRA

HAUPT & CO.

INCORPORATED

engage

choice

the

in
are

United

McMASTER

HUTCHINSON

&

CO.

MULLANEY, WELLS &. COMPANY

4
.

February 20, 1953

•

for

the

approved
hall

on

prin¬

In

Parliament

mature

an

..

.

.

consti¬

disparity of treat-

Continued

(Philadelphia Plan)

know that the
Marshall in Marbury

plant,

circumstances,

tuted unlawful

of

41

*

was

property

ruling that the refusal

you

ciple and the precedent that Con¬
gress

>

re¬

room

rejecting this contention,

majority

Equipment Trust Certificates

gated powers under the Constitu¬
tion.

*

the

purpose,
in the - very
the Fifth Amendment."

a

3%

contended

organizer

Equipment Trust, Series 37

was

to

room

Board

"private
with

Illinois Central

States

legislation which

the

seeking to
employees of the

which
consti¬

in

union representative

a

$4,500,000

whether the

was

the

of

enact

issues

American

history

Congress
could

basic

per¬
space

same

the

under

marked

the

issue

a

Board
was

de¬

interference

in

of

Co.,

basic

room

a

The

"the

liberty."

case

change

Relations

a

in

swept

that

demonstrably irrelevant to the
policy the Legislature is free to
adopt, and hence an unnecessary
unwarranted

per¬

a

or

individual

the

refuse to

or

of

tained

re¬

fully under the due process clause
only "if arbitrary, discriminatory,

and

a

building owned by them. The
building had no connection with
the mills,
although it was located

the

cision legislative controls of busi¬
ness
could
be attacked
success¬

with

1949,

thus understand why it
lawyers of this day

the

due

Spinning

freedom

rent,

sons

Labor

Stowe

v.

decided

constantly

of

must

public
community, the mill-owners were
however, guilty of an unfair labor
practice

was

held

National

Board

business

to be "affected with

tutional

One

fed¬

the

irrelevance to

or

of

and force.

state

demonstrating
discriminatory

lawyers.

government and why we
strive to uphold the
Constitution
against every fact

of

valid

regulations

burden

a

specific

prohibi¬

adversely af¬

we

with such

is

legislative -policy.
This
burden may not be
easy to sustain.

impose

was

validity."

paralleled

Persons

arbitrary

their

of the
necessity of such an en¬
actment" and "that every
possible
presumption is in favor of its

been

some

"some

of

law.','

fected by * such

national

The judicial recognition of this
expanded
concept of commerce

1942.)

of

constitutional
in
the
case

or,

Fillburn, Legislature is primarily the judge organize

v.

afoul

run

tion,"

is

away.

of

clause

process

missible

conceives

to

purpose

not

Federal

character

it

power

"stimulation

due

may be, business may be
regulated by Congress and state
legislatures "so long as their laws

regulate business "to protect what

interest."

a

lim¬

zation

In

contributing thereto,
the declared right of
Congress to

ped in commerce. It is sufficient
that The regulation be*
reasonably
related to a Congressional

bring about

in

Whatever the judicial rationali¬

or

sustain

declared

actually ship¬

discretion

doc-"

process

agricul¬
is

greater

the

com¬

includes

product

a

no

It

the

"channels

but

the

was

Mr. Justice
Black
stated:
"Under
this
constitutional
trine

merce" include the tiniest
rivulets
in each state

and

mining

Perhaps

case,

act di¬
that busi¬

may

foreign

commerce,

legislative

decision

iting civil rights for public pur¬
poses.
Thus, in a recent labor

is

and among

production,

that

fundamental

latures

ex¬

necessary for bringing about the
desired conditions in the
channels
of interstate commerce."

Amendment

the

to

business.

change in ju¬
dicial
philosophy permitting legis¬

is completely un¬
inhibited by the commerce
clause
in selecting the means
considered

invalidation

Although

the

more

ghoVt; Congress

is clear and certain.

!

to

business

Congress

dissolution

lation ubon constitutional
grounds
unless the reason for

The

Thus

,

over

underlying

commerce in more states

one,

may

the part

on

.

applied

controls

1%

longer to be so broadly con¬
ness to protect
what it conceives
strued that the Congress and state
to
be
the
national welfare.
It legislatures are
put in a straitmay prescribe appropriate
regula¬ jacket when
they attempt to sup¬
tions and determine
the condi¬
press business and industrial
con¬
tions: under which that
business ditions which
they regard as of¬
may be pursued.
It may
compel fensive to the public
welfare."
changes in the voting rights and
(Lincoln Federal Labor
Union v.
other privileges of
stockholders. Northwestern Iron
& Metal Co.,
It may order the
divestment or 1949.)

relied

assure

.

corporate

rectly with respect to

we

unfairly,

executive

evils.

that

affecting

history, however, hds been

approval

Standing against this tendency

they

decision

on

has

tute in ever greater measure the
action of the state for the services
of professional and businessmen.

Mid-Winter




a

cept

It

sort of threat to the

only danger to the legal pro¬
fession, as I see it, in modern

that
man

the

transacted through such

of

If its pre¬

constitutional

velopments

re¬

The

v.

con¬

trols involving labor relations,
cial security, taxation,
sidered

legal

existence of the

certifi¬

may

engage

their

not hold any

stitution of

Properly Applied Restraints

impose

requirements

use

judicial acknowledg¬
nations, ment of the positive paramountcy
the several states, and of the Federal Government over
party must lose. It takes a highwith the Indian
tribes, has been business in America. As Mr. Jus¬
minded client to compliment his
tice Murphy observed
lawyer when he is on the losing legislatively expanded, with ju¬
"Any limi¬
dicial
approval,
into
ostensible tations are to be found in other
side.
In this respect the services
authority over every aspect of sections of the Constitution."
rendered
by
lawyers,
in
such
American
business which
inci¬
areas of
conflict, undoubtedly give
Some Recent Court Decisions
dentally relates to the interstate
rise
to
adverse criticisms from
Prior to
shipment of goods or transmission
the 1934 decision of
time
to
time
by
disappointed of information.
This authority is the Supreme Court in Nebbia v.
litigants. This is a criticism which
not limited to the economic
New York, it had been
con¬
is inevitable in the
generally
very function
one

land.

is

of

party must win and

as

fundamental law.

ered,

is

interests.

Political

freedom gives rise to civil
economic
freedom, to

If

by

imposition

peculiar

a

to

and

who

tent

gov¬

charter

have

we

courts
or

exceed

tional

for

*"

and

the

ceased

is

sions alike.

individual
law

recognizes

constitute

public
question

adverse

Storey

is freedom.

free

preservation

freedom

and

G.

challenge from abroad di¬

challenge
society.

the

The

suit

Elsewhere

the

the

lawyers that they must represent

sin¬

world

practice
It

The

issue of

gle

the

and

sions.

these

greatest

the

over

endanger the basic rights of
freely to engage in business

legal prob¬
lems, but to

them.

The

straints may not go beyond that
which is necessary to provide such
protection and may not actually

protect

them

such,

nation

provided

ii6t

tions,
as

society,

the

professions.

whether

expect

to

us

professional

of

the

f

past,

heavily,1

quarrel.

seek

of

of

economy

those

fear of socialism in

no

In -the

r

basis

faithfully observed,

legislative

his

restraints,

here

interest

challenge
today.
Our
'customers

of

also

this country.

rights of business and professional
men
undoubtedly are qualified by

us.

are

do

are

upon

affairs

is

the

economic freedom.

cepts

calling.

sa-

to

.Both

constitutional

government.

structure

the

Amend¬

form

representative

heed have

court cases

our

clause

conditions

the

ernment,
our

expanding Federal
and business, and concludes by
urging

lawyers value

merce

nomic

Constitutional rights.
Bankers and

Fifth

strument, which is

take united action to protect their individual

to

the

Constitution; and interstate commerce so that
those
governments under channels will not
be conduits for
the Fourteenth
Amendment of the promoting or
perpetuating eco¬
Constitution.' So this legal in¬

Asserting greatest single issue today is freedom, distinguished
attorney sees great danger in tendency toward government
encroachment in the fields of professions and business. Scares

power 6Ver commerce

applies
as
Government

Federal
of

against state

Storey, Armstrong & Steger

fying Tenth Amendment. Cites

of

rule

page

36

12

The Commercial and Financial Chronicle...

(896)

even more demand
as dollar ex¬
change becomes available./There

World-Wide Credit Situation

is

lot

a

money"

_in the

waiting for conversion.

banks

And Our Foreign Investments

"hot

of

collections

and

sluggish.« in,is good and they are fine traders,
so I feel certain they will recover
We
must
not overlook
Cuba, * again as they always have in the
Mexico, Puerto Rico and the other * past.
/
are

instances.

many

Central

in

nations

,

America

Many businesses have been
marking time waiting for the Free

the

Exchange Law to go through and
shortages of essential imported
materials are becoming more ap¬

us

to deal with them

Boston banker reviews economic conditions and credit situa¬

parent and they are having a de¬

so

lets take

Finds credit

teriorating effect on many lines,
Collections are only fair and the

of the

By RALPH M. BINNEY*

Vice-President, The First National Bank of Boston

in

tions

various

with which

nations

and foreign exchange conditions in

trade.

we

Latin America mixed, with

"not

brilliant one/'

a

foreign investments,
confiscation
movement

and

of

Lists fundamental points

which

among

regarding

Great
ins

Business in Chile is

our

little bet¬

a

ter, but credit is still tight and
although the current wheat crop
is better than last year's,

have

probably
tons

commensurate with risk involved.

to

one-third

about

or

she will
import 100,000

Let's

take

a

look

by

manner,

about

the

short

regions,

time

best

broad

a

is

that

as
do

can

we

credit

the

at

in

the

at

Chile

In

ada

because

the

similarity
our

so

think

to

of

trade with
our
great
northern

In

Kalph

M.

binney

fact,

a

working

detected,

American

many

Canada

treat

So far

domestic market.

as

a

as money >

import surplus of about
the preceding
The forecasts of Canadian

year.

an

business

amount in

activity for 19o,3 all

seem
to be favorable and stress the be¬

lief

that high levels of consump¬

tion, good investment climate, and
continued
defense
expenditures
sustain

will

business

on

good

a

level.
Latin
Latin

the

at

America

America is

market,

represented

of

sort

one

ican

situation

next best

quick look

a

there.

business group

substantial

I

assume

such

element

this,
doing

countries

that
are
now
in the
of development from what

are

commonly referred to as
"backward" or "underdeveloped"
countries

to

progressive

and

up-

industrialization. They are very
to us as a nation be¬

on

important

of their geographic location
kindred aspirations, but per¬

cause

and

haps

more

the

importantly, because of

wealth

other

of

natural

sort

mit

of

them

foreign

to

impinge

or

"Colonialism"—sub¬

domination

their

upon

their

natural

sovereignty. You know and I know

mineral

resources,

and

yet

as

our

technical

combination
material

industrial
know-how

each other and make

On

and

their

of

resources

capacity

ideal basis

sound,

exporter

numerous

as

every

knows,

obstacles

to

ideal

importer
there
be

Many of the difficulties

more

political

than

are

are

economic.

There is

a strong tide of national¬
running in many of these

ism
*A

talk

World

Feb.

by Mr. Binney at the Chicago
Trade
Conference, Chicago, IiJ.,

18,

Her

excess

again
exchange probof imports over

exports last year was 21% higher
the

1951

total-

trade

1953.




that

the

our

before

excellent

we

can

natural

trade

South Africa

pects

Argentina
in

The

situation

not

changed much lately. Dollar

ex¬

bills

during

Peru

in

were

amounts
the

of

much

improved.

estimate

they

poor

this

will

is

have

an

ex¬

portable surplus of some 3 million
tons of wheat this year. However,

they are trying to get very high
prices from Brazil and have been

storehouses

loaded to capacity

are

loading for export

has been small up to date. Recent
rains have helped the other grow¬

ing crops and
outlook for the
cellent.

pastures,
corn

Wool stocks

ity could be

a

and

the

is

ex¬

crop

are

good

relatively

dollar

collections

and

in

local

situation

long

difficult

in

range out¬

present con¬

slow.

this

The

however,

and

cruzeiros

are

Iri 'f?16
as there

*

is

in

content

be

countries

not

of

adjustments,

restrictions.

,

past,

capital goods imports will be given
be

goods will

consumer

carefully

screened

tarded.

With

and

re-

and

increased

gold pro-

expanding uranium
States, her
doiiar exchange
position should
improve

exports to

Wg

the United

cannQt

overlook

social

the

and

poiitiCal situation here, however> any more tban we can jn
any 0ther country when evaluatjng

credit risks.

our

A serious

na-

tional election

campaign is in full
swing prior to the April elections,
violent

and

tinue

to

racial

build

tensions
as

up

con-

result of

a

the non-whites' defiance and

op-

position to segregation laws. This
a
very explosive situation

makes

and it

really overshadows the im¬

Outlook

*

/

*

Private Investment

for

,

weeks

par-

increased

at

still

to

prompt

Monte

wools

Imports

is

some

are

market

money

continues easy.

participate

good
and

has

market
the

always been a
for
our
exporters

outlook

appears

to

favorable, although political
ditions

will

closely.

petroleum

high
will

and
be

to

be

be

con¬

watched

Venezuelan

year,

production

hit

expenditures

a

this

new

year

higher for the pur¬
expanding
production

even

of

pose

have

Last

facilities

and

This

a

enlarging

Central

This

of.

sold

surplus

increases

the

of

report

$714,270,000

$644,506,000,
$69,700,000.

total

balances

of the Banco Central in gold and
dollar deposits to well in excess

$400,000,000.

of

some

situation

the

continue

will

Italy for some time

Western

asked

been

vestment situation in

to

include

talk, and

my

^

kkenlere'm ///er

Sm^ntalp/ints

few^und

a

overlooked by some of our businessmenand almost always by our
government officials.
They, are
simply this'
1.
,

.,

.

O).Whenever the business chmate in//horff coun£y !s £*vor~
a
a.
the future outlook sound,

Credit,

however,

tight

in

be

in

rowings for industrial expansion,

increased bor-

bJ* bufiness

un-

Germany, Belgium,
other

liberalize their policies,

materials and foods

raw

Recentlv

withoufa

risks

»iaQbf1ovemmenf^Wuar^ntees
someonf hoiding their hand.

or

We've

done ** before and we'll be glad
to

j£ again whenever

do

nation

give

us

is

smart

to

operate

the for-

enough

to

degree

of

reasonable

a

freedom

and

an

even

break with iocai industry. We still
a i0f Gf individual initiative

bave

je£f bere and

a

willingness to

^ whenever there is

tunity to do

a

a

use

real oppor-

good job.

.

.

ceZe

-

and thatmeanswe

a^le

to bfi

to

keep

capital in-

our

vestment intact and even stoop so
jQW as £o make a profit on the

venture'

Italy relies on the dollar area for
large amounts of indispensable

-

"

/0-

.

^

.,

OA

,.

During the past 20 years,
you have heard a lot of sPeeches—
mostly fr0m government people-

coal

here

the Iranian

and due to

crisis switch from Sterling to Dollar

petroleum which further aggravates the payment situ t10n* A
substantial portion of Italy s ex-

if- companen*
jri«
? i?,?, * a iar}s reduce this dollar

liability by limiting such exports,
1

Wpuid tend to aggravate the

problem of unemployment, which
she

ill

can

afford

to

do

at

present time. Italy still has

the

many

of her age-old

problems with her
the outlook is not a

and

today

brilliant

one.

.

.

.

tt

j

1.

excellent progress in

postwar

problems

hard

a

stamp out commumsm^

objectives, but
Englanders
yQU

and

do> too_that when

you

or

I$

the firm we represent, put any
o£ our bard_earned money into a
or

proposition—other than

a straight
charity contribution—we want to
be pretty sure that "hard-earned

buck"

j£

js

coming back

Want

we

working

abroad

reasonable

when and

it, and that while it is

there

will

be

a

in the form of

return

sound

solving their

by

working

realistic

basis

(*)

The other incentives that

impell
make

American

companies

foreign investments

are:

to

the

desire
sajes
th

tQ protect their name and
pOSition in a given market;

need

for

raw

materials

like

badly hurt 0il,
minerals, fibers, food products,
the recent storms and floods etcand th'se fir^s like
banks;
it will take her some time to

recover

the

rockbound New
I'm sure

we

know-and

Holland has just been

by

nrW-

jieged"—"stamp out communism"

.

.

,

Belgium and Holland both mad

on

npjlhund^r

profits and dividends.

Belgium and Holland

refining

Bank

purchased
and

have

discussion of the foreign in,

and has surpluses to dispose

rope

_

year

in

growing markets in Western Eu-

ports to soft currency areas con-

Venezuela
Venezuela

if their payments
favorable, so she did

are

will

and

but collections

and, the

I

eign

even

countries

controlled

come,

labo

protectionist

rigid

wool

active in

probably continue to be for
time

have

The

more

prices.

rigidly

high

Holland,, and some-of the

moving here in better volume

are

ofvffr

rather

a

her finished goods.

their

power.

and

Abroad

Textiles

affects

course

is tight because of

may

areas.

were

■«n£oa*u !?a<* 3 g0°d the European
fr°P year in
1952 but many of
policies,

packing houses

price

earning

recent

Money
Brazil

bills

currency

Uruguay

of

and

to

currency

Uruguay is still short of dollar
exchange
and
collections
gen¬

the out¬
look for 1953 is certainly confused.

continues

French

and

situation

last

are

in¬

slow,

are

being met quite promptly.

leaving

look is still good but

the

and

high, sales

are

it

the

offered

were

free market. In most lines the

shows

ditions

d

inethe

As

ticularly hard hit due to British

$ for Certificates and 15.65 in the

istic prices.

call

Franc

textile exports

exports in 1951, and this drop in

The

would

French

-and

remained steady at Sales 15.60 per

plants.

I

resulted

accounted for 35% of total Italian

earner

Brazil

it

but

sizable

market

for Argentina if marketed at real¬

Brazil mixed. The

ing

and

season

in

Italian

once

Some authorities

to,

supply

less

Ar¬

an

exports particularly to the Sterl-

to bother

crops,

caused,
increase

was

by

imports,

satisfactory

Last year,

gap

rate

on

market has become

situation

.

|big

extent,

have been shut down waiting for

slow, and the balance of trade is

million .in

$489

but

dollars

free

only

short

January

dollar

unfavorable.

mi!This
some

have

Argentina

changed much and this

the

of

has

port

compared with, a trade

as

deficit

almost $l

primarily from the sharp drop of

in

great market for many American

but

billion,

1953

is

S

wwmnHnh

a™an™ nnual rat/of

is

Italian

exporters remains virtually closed.
Money is
tight, collections are
still

^

1953

*

"the" firs/ ine'months

official

Peru

erally

not

£or

priority and

Italian

can-:

favorable, r collections
are satisfactory and sales expand¬
ing in most lines.

rela¬

should be enjoying with
Southern neighbors.

Conditions

j
Africa

proved economic situation.

Italy

generally

develop

we

of ;

allocated for

was

imports,

tions

g0 mto U>e credt'

South

backward

and taces another

lem.

a

of price-wage stabil-

slipped

we

$80 imillion

business. The outlook for

covering

countries. Neverthe¬
less, this feeling is important and
something that we have got to

over¬

come.

of

net

and rabout

Foreign

high, however, and this commod¬

the surface, this is an

but

and

complement
an

for
the
development of
profitable trade relations.

situation,

has

Colom¬

upon

million

$403

were

cellations

difficult.

and the actual

and

degree

ity

dSlcU

ord in many

theirs.

raw

safely look

ventories

creating resistance from other
markets, with the result that the

This

coffee—so

that this idea is fallacious, and it
can
be proven by the actual rec¬

largely undeveloped, that are im¬
portant, strategically and econom¬
ically, to our future welfare and
enormous

fair

fairly

a

reaching

and

recovery

are

made qn

are

letter of credit terms, so

don 4 need to

duction

overcome.

making

after

France,
strong

good markets
products but the

are

our

,

economies, with emphasis gentina suffered from

to-date

still

can

as

is

business with the Latin American

process

having hard sledding and still has

problems to

of

j

Far East

5

in

another

or

turing techniques subject them to
some

that in any representative Amer¬

a

the; war of nationalism

the world, beset
also by the ills of socialism and
nationalized industry at home, is

many

we

Egypt, and

sweeping

is

and

over because of
time.
Many of

of

pressure

gome

cash,

foreign trade in 1952 was
Frequently they bia as a one-crop country depen¬ highlighted by two major factors
resort to exchange controls or im¬ dent
upon coffee prices and pro¬ —the large deficit and the marked
port and export restrictions that duction for her; dollar
earnings.
seriously interfere with business. Import permits issued v in
in
n
1952:

overcome

our

let's take

so

in

that

the

these countries
for

supply

Iran

as

India-

than

lion

invariably impose restric¬

'

same

vital

of

East

going to skip

am

wars" by and

two

such

as

million, of which $380 mil¬

merous

the

disaffection
sources

abroad

mg

concerned, instead of the nu¬ More significantly, however, they
foreign exchange worries oftentimes set up nationalized op¬
ahd restrictions in other foreign erations, State monopolies of es¬
areas, we have all learned to be a sential
production, and govern¬
little envious of the Canadian dol¬ ment
ownership or
control
of;
lar—and we certainly don't mind many
businesses that could be
more efficiently
earning it.
and soundly de¬
Canada's balance of trade im¬ veloped
by private
enterprise.
proved last year. An expansion in This naturally discourages foreign
the volume of exports, accompa¬ investments and retards the
nied by declining prices of many growth of the
country. Unfortu¬
in r-i> ted products, resulted in an
nately, top many Latin American
6xp rt balance of $263,700,000 for countries have the idea that for¬
the first 11 months of 1952, in con¬
eign capital and modern manufac¬
is

trast to

pending.

backlog

(Brokers' $ rate 127 pesos.)

some¬

order to survive.

great

manufacturers

a

$405

tions

trade.

eign"

still

ments

"for¬

terms of

is

there

overlooked for dictatorial govern¬

in

neighbor

and

of

and

$1,180,000,000—and she cerColombia
times behind the scenes and some¬
tainly can t go on that way very
times in the open, as in Guate¬
Colombia is a good market for long.. She
has been running a
mala. These political factors must many
American
manufacturers deficit every month for the last
be taken into consideration when and she ended the year 1952 with six months in the European Payevaluating Latin American credit a book surplus of $19 million in ments Union, and unless the siturisks.
As
any
experienced ex-. her balance of payments. Export ation
is
reversed
in
the
next
porter
knows,
they
cannot , be licenses approved last year totaled month she faces a grave crisis.

close that it is

hard

small

substantial

Communism

of

element

be

can

own

is

of these situations the

some

$ to

per

per

been

kindred

(117

up.

$.)
Allotments of pre¬
ferred exchange at 60 pesos have

controls.

Can¬

country

110

at home

Near

such that most sales

Britain, beset by stagger-

losses

Near and Far East

The

political and social conditions

Europe

Z St

copper

has firmed

ket

dictatorship and rigid

of

degrees

We need not

with

third of Latin

a

terms of population
under various

in

export sur¬

an

production
and the free-dollar exchange mar¬

and area, has come

Canada

discuss

At least

showing

increased

to

government

dictatorial

been

plus in the last few months, thanks

—

by

usual,

control.

America,

disposal.

our

has

countries—against their own real
interest
and
accompanied, as

last

of

year's import requirements.
and collection situation in

other, :$reas....
>

•

some

un¬

Chile

.

(2)
profits and capital, and (3) reasonable return
expropriation;

continues

trend

mtUv'duaUy,

quick look at

a

<-

mar-

e'a exist for many not permit
American

checked.

(1) assurance against
convertibility and free

are:

Caribbean, where good

.

inflationary

widespread shortage of dollar exchange. Sees Great Britain
and France beset by difficulties, while outlook in Italy is

,

and

products -Time, will

}

Thursday, February 26, 1953

from the blow

generous

fered

so

ously

by

help

in

that

spite of
of-

was

companies,

c°mP^n'es.

and

publ'ic

insurance
utilities>

...

e'C-> ^"a^ service industry and folTheir credit low the call of attractive business

promptly and spontaneeveryone.

skjppjng

Volume 177

Number 5198

.;

The Commercial and Financial Chronicle

.

(qD7)
potential earning power* All
groups
follow certain

&ud

of

be

these

similar

Agricultural Outlook for 1953

basic

policies whOn con¬
such investments over¬

sidering

:

By TRUE D. MORSE*

seas.

is—j;;.-—
ll) Assurance against
tion

and

inal

investment

and

confisca¬

its

reveals

tal

can—at

that

assurance

date—be

returned

and

Many

the

to

that this presents a tough problem
to the foreign government. Actu¬

ally, it is not
ments

long

bad

as

it

as

seems.

who have large invest¬

us

abroad

pull

them

put

in

for

a

invest¬

permanent

or

ment.

We certainly don't expect
bring them back soon and if
they are earning reasons b'e divi¬
to

dends

that

be

can

stockholders

converted, the
be happy
and

will

that

contented.

Election

results

will

work

dictions

no

miracles for farmers and those fi¬

error

The'

have

ments to—

"on-the-

term

be

to take longwithout the

expected

risks

overseas

prospect of making a profit.
the

profit

motive

that

It is

built

country and has developed a
lot of others. It is nothing to be
ashamed of, and when we lose
incentive

drive

to

age—

ing

of

are,

course,

other factors that have to be

by manufacturers, trans¬
portation companies, and others
which I shall not attempt to dis¬
cuss.
Many of them were well

yesterday

afternoon by
the panel on Market Analysis. Be¬
fore closing, however, I would like

The

farmers'

a

.

condemn

the

both

farmer

the

sumer

as

and

Brannan

.

fraud

a

the

It

leave

one

short

they

attain

by

will

step

of

to

the minds
farmers

output

lot

a

the

of

will

which

by

1955.

make

capital

more

farm

output

by

Farmers hesi¬

such

rapid

invest¬

'

for government

insurance
form

of

eign

of

loans, guarantees,
sort

some

security

to

investments.

don't think

or

some

protect

for¬

Personally,

I

changes. Administrative decisions
like

matters

on

and

other

and

marketing

I

still

we

tape that

think

nessmen

are

that

with

go

them.

American

busi¬

willing to

are

able

business

profit.

The

way

this

our

own

can

assume reason¬

risks

to

rate

to

to

The minute

be he

manufacturer

vidual—sees

his

tax

bill and

posable

or

an

to

indi¬

reduce

good
A favor¬

the proposition.

a

able tax rate

aplied to foreign in¬
capital gains would start
good sound companies and

come and
a

lot of

Economic

exports

agreements,

be made with limited

delay

can

the

as

will

forces

be

the

influence regardless
party in power.
These

the

of

build

from

up

to

season

season

of

record

a

build-up of numbers

—plus drouth.
Corn

prices skidded far below

supports because of
a

concentrated

a

big

the

impact

World

more

crop

in

would

show

good

enough to attract it with
able cooperative

favor¬

a

about

are

even

Fear

of

the

of

down

land

»

future

thus

use

and

—

is

sound

a

farm

the

minimum of risk

a

primary requirements

the

authorities

in

which

necessary

for the rapid production increase.

Fertilizer

tain

first—and it

comes

need

cushion

country

mate

more

synthetic

power

do

can

of

price-mak¬

ing forces. Therefore, watch
and

demand

is to

as

your

sup¬

best

guides to future prices.

is

increase

in

farm

as

is 93%

"70%

money to the government and let¬

ting them do it for

the

us

hard,

expensive way. I hope and expect,
however, that under this new Ad¬

ministration

things

going

are

to

be different and business will have
a

more

favorable climate to work

in—and that

we

definite foreign

guide

will have

policy

a

good

program to

us.

Joins L. B. Schwinn
(Special

to

The

Financial

CLEVELAND, Ohio
W.

Willett has

become

Chronicle)
—

Chester

associated

with L. B. Schwinn

Commerce

& Co., Union
Building, members of

the Midwest Stock Exchange. Mr.
Willett was formerly with H. C.

Hopkins & Company.




Agricultural

tary

of

Agriculture,

will

55%

the

on

to

the

not

they

tractors—and

borrow

that

they

additional

credit

could

be

would

funds

acquired

unless

The

'bad'

if

study

turns

shows

that

additional

on

the

capital

in¬

farmer

ceeded

rates which must be paid for bor¬

Cornell

rowed funds."

can

farmers

themselves

a

he

gen

more

Lime

nitrogen.

will

be

Warren

farm

in

also

can

Price

jected

able leadership from Washington.
He is trained in agricuture and

crops

had

previous

experience

in

for the
the

For

Washington.

be

ests of the

wheat, oats,

nation and of

ahead

of

agricul¬
politics in the ad¬

ministration of the high office to
which he is being named.
The

1953

"Outlook Conference"

has been held in
the

different

have

been

Washington and

"Situation"

released.

reports

The

state

authorities have issued their pre¬

Peay
First

address

State

by Mr. Morse at Austin
College, sponsored by the

National

Bank

of

ClarksviUe,

Clarksville, Tenn., Dec. 30, 1952.

that

surance

return

greater

income

than

Lack of experience with reces¬
sions or a depression is a factdr
about which there is

much

a

the

cost

of

borrowed funds."
Farmers
do

so

on

increasing

borrow -1- should

who

sound basis.

a

one-half

over

suggestion that farmers plunge
into debt or recklessly spend sav¬
ings. It is advice to spend freely

is estimated that

It

concern.

This is not

tobacco,

and

cotton,

businesses

and

experienced

for higher production if you have
a
sound farm management pro¬

helps

gram.

farms

other

have

than

It is

capital
of

continuous uptrend in prices. That

advice to invest additional

to

produce

higher

price

guarantees.
There

•"

not

not

be

local

areas.

be

true

in

I

are

(This

Conference

of

the

now

Credit

perience
lems of

of

credit limitations

and

Less

know

how

to

incomes

than

clearly

sent; one

ad'

of

past

ex¬

the

the

to

major
on

to

sell these securities.

They

are

subject

page

STATEMENT

to

the regis¬

prospectus requirements of the Federal Securities Act.
Information about the issuer, the securities, and the circum¬
stances of the ofTering is contained in the
prospectus
which must be given to the buyer.

82,000,000

CINERAMA, INC.
The registration statement covering these securities is not
yet effec¬
tive. No offer to buy or sell the securities should be made and no

offer to purchase the securities will be accepted until the registra¬
tion statement has become effective. The
publication of this notice
that the proposed offering will be made or as to
of securities, if any, that will be available for distribu¬
by the undersigned.

no

tion

assurance

amount

Copies of the proposed

form of

CEARHART &

OTIS, INC.

New

are

"basic

guarantee for the basic
Production
with

a

can

minimum

-

crops,"

can

expanded

Couple
the

guaranteed will

the

sell

Name.

at
Address_

price

profitable

from:

York, N. Y.

1

WHITE & COMPANY
506 Olive Street,
St. Louis, Missouri.

Please send me a copy of the proposed form of prospectus relating to
Cinerama, Inc. 4% Convertible Debentures.

be used to

high prices.
with

be obtained

price

produce crops which the govern¬
has

may

crops.

be

of risk.

Bargain fertilizer

prospectus

guarantees

use

that

can

repre¬

danger

tration and

the

prob¬

economy.

continues

INDEMNIFYING

offer

of

and

meet

Continued

ISSUED

not

half

farms

from

shrinking

a

management

prices

operating

Beef cattle
was

through the meeting.
may again
be a rapid

This is

be

The Beef Problem

concern

reflected air

NEW

to

American

Bankers Association. The

There

when

businesses

Agricultural

<

busU

young

especially

test

declining.

those

Clarks¬

spent November 13 and 14 in
National

true

comes

enough

the

need

nessmen

ville Trade Area.)
the

*

The

will

management mis¬

up

cautioned.

,

many

in

cover

Young farmers and

yields

with

protected

crops

Not all of these

reflect the 90%

never

rather

a

takes.

45 Nassau Street,

but all will

now

charged with the management of

as¬

soybeans,

corn,

well

those

of

plans

years,

in

would

other crops will sell at high levels.

ment
*An

two

projected ahead with

He is a man of unquestionable
integrity and will put the inter¬

ture

1953 and 1954.

years

next

can

it

capital

short time.

adjourned, mandatory supports at
90% of parity was voted for basic

has

short

a

lose

a

is

supports are being pro¬
ahead.
Before
Congress

of

nowadays

4% Convertible Debentures, Due March I, 1958

Supports

ex¬

investment.";

much

in

needed

larger quantities—annual applica¬
tions "nearly 60% more than was
applied in 1950."

have

costs

mated that the "use of additional

by 1955"—4 other regions now

use

If

the

soon

his

W.

for

but

of

few

a

losses.

farmer

a

pay

time,

cash.
Bank

recovered,

Stanley

to

pro¬

therefore,

would

equity

says

oil

"Just

where

his

Dr.

esti¬

not

situation

a

vestments in southern Iowa would
be "considerably
above interest

spend

Reserve

could,
financial

years

heavy
were

modern

re¬

and

gas

says,

cause

no

cost."

The

ma¬

exceeds

They can't

they

Federal

costs

at

the

Minneapolis

not

even

often

land.

the tractofs.

duce

bar¬

rier. "The majority of the farmers

indicated

the

farming are high
and, "sticky." Farmers
buy
everything from baby chicks to

returns

the

the

of

farmers

of

Cash costs of

run
was

farm

a

on

cost

of

value

—

money.

rate

investments

high—the

are

more

unless

.

up.

Capital

the

of

100%

[

the,, chinery

is

borrow

not

25%

of nitro¬

users

can

with

contrast, the price hazard is

"The Corn Belt states would be¬

Price

insure

In

borrowing. Accord¬

nitrogen, 54%
acid, and 77%

the heaviest

to

farmers

—

and livestock

crops

whole, the esti¬

a

more

phosphoric
potash.

Leadership

Ezra Benson, as the new Secre¬

farming

control.

is the

great,

survey,

anticipated

over

'

New

to

in 1950." For

used

attitude.

Perhaps the idea is too simple
—we've got too used to
giving our

of

that to at¬

increased

quantities

grow¬

and

from

shock

the

be

to

the

more

how

would

output by 1955, fertilizer use will

come

party in

20%

•

production

the

the

un¬

Authorities agree that the most

ply

of

motivation

—

non-real-estate funds

over

found

hazard
from

methods

produce

southern Iowa farmers

the

to

will

management.

crop,

large

a

supplies

competition

any

ing

farmers

money

major barrier to the most effec¬
tive

control

a pro¬

University of Illinois

shows

cautious

more

borrowing.

the

area.

Cotton prices moved
der

ing

that

future

They don't want to risk savings.

They

say

fibres.

growth prospects and be good for
the foreign nation that was smart

of

few; bargains which
prices
farmers can buy. One dollar spent
far more than any governmental
on
fertilizer at today's prices is
program.
returning $2.00 to $10.00 in crops.
Cattle prices dropped because
The authorities

favorable

inesses

-

one

and year to year. They set

other investors

looking abroad for
opportunities and this
money would undoubtedly find its
way—for the most part—into bus¬

fear

of

prices and market demands.

There is

takes over.

dominating

increase his dis¬

income, he takes

look at

a

earned

taxpayer—

a

chance

a

apply

income

abroad.
a

a

easiest

be encouraged is for

authorities

lower tax

make

quickest and

commodities,

new Administration

alert to their oppor¬

tunities here and abroad and that

they

mar¬

keting of government owned grain

need them and all

red

ceilings,

by law,

supports not fixed

the attendant government controls
and

price

ments—because

as

more

With
modern
machinery,
tractors,
improved
seeds
and
feeds, more fertilizer and pest

are

a

that
the

take
up

one-fifth
tate

in

profitably produce.

can

It

to

to

more

authorities

fall

con¬

clear

seems

the

.

on

scheme

plan

of

They show

could

profits

shift

financing.

prices.

additional

the

major

shifted

way

resistance

1955.

bi-partisan Federal
agricultural
commission
with
power to review the policies.
"We

farmers

"the

forecasts

not

are

farm

agreement that "credit is not

The

report cautioned that

what

ability to produce.

"We favor

added

output averaging

what farmers will do."

American

the

on

pay direct subsidies from the
thought with
Federal treasury in lieu of prices
you to think over seriously.
to producers."
For
several
years now,
there
have been all sorts of proposals
There
will
be
important

to

farm

estimates

con¬

be

The

has

of

Iowa State College made a sur¬

4% per year.

"marketing agreements."

sidered

covered

in¬

restrictions

could

above the 1950 pro¬
This would be an in¬

in

crease

They said "We do not believe in

numerous

re¬

look ahead to 1955.

a

there

duction.
True D. Morse

surance—

greater heights we are all done.

There

studied, with all
joining the U. S. De¬

another 20%

support¬
crop

been

states

1939,

credit—

-

has

and

the

use

problem

Interest

On top of the rapid rise in pro¬
duction that has taken place since

"voluntary
self

is past. The
is tight¬

farm profits

search. It is

■

farm

con¬

"easy

partment of Agriculture in the

"sufficient

to

on

the

e

stor¬

a r m

up

this

that

f

b 1

a

the

"Agriculture's Capacity to Pro¬
duce"

non-

commodities—

should

in farming

farmers

mortgages

banks

to long-term

Prices the Farmers' Major Hazard

and

lot

a

farm

a

problem."
of

predictions

that

on

"commodity
on

the

in 1953.

mensurate with the risk involved.

why Americans

fact

lime

strongly guaranteed.
recently participated in

was

up

ening. Net incomes may be lower

made commit¬

h

the

of

in

and

relating to the problems of get¬ more regularity. Many production
ting increased production. There, hazards have been brought under

sobering effect. They

a

P.C.A.'s

such

make

take

when

gram at the

process

and'

will

to

even

vey among

money"

Republicans

s

the

squeeze

expected.

peri

in

are

reports

firm

be

can

or

to

which

More trial and

loans

no reason

I

getting them out.

nancing and working with them.
Programs should develop slowly.

(3) That brings us to the next
point—a reasonable return com¬
There is

capital to step
by 1955.

farm output one-fifth

get

so

being projected ahead" with

are

It

credit

soybeans, wheat, oats, tobacco, cotton

corn,

feel

people

applications

owners

of

supports

expansion

you

farm

sound

to

money

selling

-

and other crops will sell at
high levels. Points out farm land
boom is over, but that it will take a lot more

the capi¬

future

United States.

Most of

Says, at
"price

assurance

the

necessary,

more

heavy

farmers, dairymen and cattle
present, farmers1 major hazard lies in prices,

and holds

some

converted

situation

current

raisers.

accumu¬

lated profits.

(2) Some
profits and, if

lot

Asserting long-term future for agriculture was never more certain of dependable profits, new Under
Secretary of Agriculture

expropriation of the orig¬

for

debts

fertilizer.

'

fertilizer. and

,

Farmers will need to borrow

\

Secretary of Agriculture
Former Chairman, Doane Agricultural
Service, Inc.

They don't ask for favors but
they do want an even break. For
the most part about all they ask

of

basis

a

plans.

Under

\

made

have

13

31

14

The Commercial and Financial Chronicle

(893)

in the Pacific; but most

War Business

sist

BABSON

By ROGER W.

perience

industrial

work

costs

lower

on

and

overtime.

or

it has

and

rush

no

of

employers

many

in

participating in group bargaining
is that they freely entered into it

plants have nothing now to fear.
The new Administration will in¬

......

v

and

that

of industrial activity is due not to
Korean conflict, but to preparation for World War III. Visual¬
izes slowly declining business.

ing high and handsome" the past

on

Says

equipment.

Last
and

week

that

stated

get

sick

ends.

As

this

before

year

already tired of

are

we

will

Chinese

the

it

of

Korea

the
this

Korean

a

boys com-

our

home

g

could

policy

and

workers

wage

but

business,

above

above

by

hurt

be

several

that

means

may

Continued from page

e

but
question

arises

peace

your

Surely

withdraw

Koreans
to

their places.

take

that

it

boys

be

may

get

not

the

until

boys

our

South

trained and equipped

are

back.

However, it

the

reduce

This means
before our

1954

number

in

each

recruits

year

in
decision in
such a situation is bound to fall
short
of meeting
the needs of

provide replacements
total military forces.

An

Analysis

We

must

Korean

in

and

the

South

food,

with

ammu¬

clothing.

We

assume

boys will give the South

our

Koreans

their

equipment,

Hence, by

other

and

guns

including
year end,

airplanes.

the South

as

ment

to

as

and

for

had

years

The

Area,

Bay

tenure

directed

case

will find

bargained

jointly with

a

each

negotiations

group

of

by representa¬
entire group of em¬

that

the

given union.
The
year
resulted

and

accepted

were

as

should
now

Ninth Circuit

from

of

employ¬

that

the

its

all

pay

em¬

af¬

men

is pending

Court, and

in the

doubt

no

to the Supreme

way

Court for ultimate decision.
"

To

date,

them

to

have

entirely

was

assumed

proper for
economic

their

use

strength—as

in

employers

most

bargaining
it

group—when an
was
impasse was reached.
The only
negotiations a
few apparent other alternative, if one
member is struck/ would be for
years ago the union struck a sin¬
gle employer in the group.
This the others to give him financial
was for the clear purpose of pick¬
support during the strike to off¬
ing off the individual employer set his loss. This may not be prac¬
for an
advantageous settlement tical, however.
which then could be presented to
Thus if the position of the Na¬
the rest.
If successful, this move tional Labor Relations Board in
would have defeated a major pur¬ the Davis Furniture case is sus¬
reached

only, but have arisen in concrete
form in numerous multi-em¬

negotiations

ployer

recent

over

Instances of similar prob¬
lems in dealing with such subjects
years.

intra-plant inequities, mainte¬

as

and

pensions, overtime,
may be found.i In

rates,

nance

seniority

a

in

of the companies in bargain¬
ing together.
pose

every typical bargaining
the
existence of -, different

in

fact,

A

operation

an

group

>•

Another

worked

however,

of
the

As

wage

today is that typi¬
cally the wage increase question
is approached on the basis of a

negotiations

been

agree

Homogenieity—A

Prime

add,

have

been

academic

purely

for

of Capitalist

Essential

first

it

the

is

place

has

been

invite fiasco/

to

of the

one

might

I

Group

Bargaining

tions

arise because of
incentive programs. Suppose that
three companies in a given labor
can

And,

your purposes.

Soviet Exploitation

r

on

policy

wage

undermined.

much of my discussion today will

~

railroad
trains,
waiting rooms,
offer." It may be easy
recognized that a prime essential
restaurants, and
living quarter
the size of the total
of successful group bargaining is
allocations.
In
Russia truly all
package — but ndt to agree on
hftfnqg^peitfc oft the. business op¬ rtnen are created equal, but some
what goes in it—holidays, vaca?
erations
invplveji., To. lumpi . to¬ are more equal than others—with
tions, insurance, shift premiums,
gether. a food ^ocessor with a the
big reservation added that
etc.
steel fabricator in group negotia¬
the inequality is^ determined by
A more specialized problem of
to

tained, a major purpose of group
bargaining by employers will be

reasonably well over

so.

In

a

Continued from page 5

technique

the

that

remains

fact

has

difficulty

real

of the the years in many groups. It is
negotiation. important to know why this ;■ has

of group

aspect

the

bargaining,

most,

perhaps

and

Despite
group

"package

Situation

supply

armies

nition

that

of the

of

needs

areas.

plants affected in the

merely
our

the

to

other

some,

needed to

are

inating

in

countermove, therefore,
area
.the
appropriate in one
entire group of employers
conditions in the various plants
shut down their operations until
areas, and perhaps highly desir¬
able to meet a manpower problem presents a potential source of dif¬ the strike was settled. The record
does not indicate that anyone was
there, will be poorly suited at best ficulty in group negotiations.

new

Korea, over 1,000,000 new

settle¬
of the

ment

may

of

in each

of such areas. Thus, a wage

draftees.i With only about 531,000
men

of

cost

practices, and many other major
affecting wage policy often

operate quite differently

boys withdraw?
cannot

the

of manpower,
living,
community

availability

The

and

industries are now profiting
greatly by the Korean War. What
will happen to them when our
realize that

Francisco

San

one

dealers

binding b.y all of them.
After a complete impasse

factors

many

us

Company is

furniture

dozen

a

ployers

Steelworkers settlements, and an¬
other in Baltimore or Philadelphia.

rail-

the

roads

First let

Board

settlements

found to be the best cushion.

manage¬

had

groups

fected for time lost.

The Davis

which

panicky. More advertising will be

Relations

the

ployers

the

not

9

Pittsburgh area influenced by

the

will

this

both

i

to

as

affect

Roger W. Babson

This involved the Davis

Relations

Labor

that

found

engaged in an
unfair labor practice by discrim¬

the

Labor

of

Multi-Employer Bargaining

be

thankful;

job.

before

come

ment

a

tives

The

railroads

all

we

should

how

has

to

employers,

*

t h

r

o

the

which

reference

in¬

Furniture Company in San Fran¬

conditions. I visualize slowly,

declining

without

be

for

remaining

cisco.

opportunity, to

an

basis

National

Board

would

recently.

again..
F

The

today

National

adjust themselves gradually to the
new

Business Outlook

new

manufacturers

all. Now the

us

give

with

Peace

n

employees need to be laid off.

will

1953

see

i

only the latest and least efficient

means

that

But

ment in certain communities.

conflict,

the

complete

co¬

would
dealing

presumably

the

with

bargaining

bad

a

then
been

discussion of the advan¬
tages and disadvantages of group

case

fall for

unemploy¬

forces and cause some

leading to

was

years

threats of

any

Purely and simply,
this was a lockout to pre¬

have

Any

Frankly, I feel that this will be

few

or

made.

which

The Davis Furniture Case

good thing all around. Our "rid¬

a

most

discussed

I

wage

workers must be more efficient.

discharged
ercion

then,
satisfactory to, vent an individual employer from
being picked off with a settlement

proven

them.

This ' means

manufacturers

what will happen when Korean peace comes,
Mr. Babson contends war expenditures will continue, since we
will furnish South Koreans and others with guns, planes and
Commenting

Thursday, February 26, 1953

...

Perhaps
exceptions to this

rare

ing only 7% of the world's popu¬
lation, "nevertheless
produces a
half of the world's output of

full

manufactured goods,

y -

Surely this great
with
the
ensuing
status

of

achievement,
number-one
country; is af least

our

the all-powerful State.

in

;

observance

due to

part

our

wholehearted

the

basic

.

be found in some San Fran¬
cisco employers' groups which in

The End-Product of the

may

of

need for incentive—as

Hybrid System

human

in the

seen

Many of the ships how patrolling

workings of such devices ranging
negotiations cut across in¬ :Now what has this pseudo-cap¬
from
the
opportunity of every:
gether. Company A has no incen¬ dustry lines. It may be that the italism
added up to in the coun¬ new-born male
baby to become
tives at all. Company B applies
relatively greater success of group try's over-all economic strength,
President, all the way up — or
incentives and bonuses to 50% of
bargaining on a local basis in and in our relative ability to
down—to the patent.
its production workers, and their
service industries results from the carry-on the Cold War?
If the message from this con¬
earnings average about 20% above high degree of homogeneity which
,r In the. first place, .with their
the agreed standard hourly wage can be achieved in such
groups. .over-concentration on their own clusion, namely renewed faith in
rate. Company C has applied in¬ This
is
not
easily possible, of armament economy, accompanied the free economy's incentive mo-,,
centives and bonuses to more than
course, in companies with wide- by the population's starvation of tive, is of any value to you and
80% of his total production force, flung,
complicated, manufactur¬ consumer goods, the Soviet Union your Association, that alone is
indeed important justification for
and these incentive earnings run
ing operations.
'is
still
behind—way behind—us
my having made the journey to
an average of 50% above standard
Secondly, the parties in group in the armament sector—for in¬

the

hourly rates.

Koreans

only
the

be

may

and

guard

demand

practice

upon

up

ma¬

flare-

a

in Indo-China, Malaya

occurs

somewhere

else, the traffic of

railroads

western

our

work,

will be

us

terially cut down. Until
or

mostly

doing

will

surely

be much less.
Peace

or

will

war

little

make

difference to the maintenance

of

pense

coast

to

Navy

our

of

its

or

will

Korea

ex¬

men.

be

sent

market

Now

let

waters; but their ex¬
penses will gp on just the same.
In a way, this also applies to our

hour

air

tiations

We

will

lose

fewer

to¬

some

-

other

force.

bargaining

are

area

is

that

assume-

us

eral «wage

of

increase
to

essential
to

I

-

a

gen¬

10c

bring

satisfactory

a

bargaining,
per

nego¬

conclu¬

have
too

generally

learned

much

many

sion.

manufacturing

become too loose by an accumula¬

form

treatment

tion

tract

covering

fewer

in

concerns

will have

orders;, but those engaged

that

reasons

minor

of

incentives

its

changes

have

the

over

collective

day

truthfully

try to

are

single
thousands of
a

ployees.

We

plans. In view of this, C does not

either

wish to apply the

agreement on specific subjects,

must

South

make

Koreans

and

army

it

to

popular
in

serve

replace

the

for
their

Allied

troops.

poses

Most

today

War

of

is

the

not

conflict,

Preparations
industrial

due

but

to

to

the

cost

activity
Korean

preparing

for

so

rates

for

pur¬

would produce a payroll

impact

hour

base

of incentive, and argues that

to do

Cold

the

to

crease

10c general in¬

about

instead

proposes

should

of

14c

per

C

10c.

man

therefore

that the general increase

be

given

as

a

flat

cents-

mon

a

find

to

that

include

ments

for

per-hour amount

incentive earnings received under

group

existing incentives.

has far outweighed

6 to 12 months

the

making

may
ent

If

more.

Furthermore,
military supplies

of

become

a

new

industry for

so,

efficient

no

and perman¬

some years

ahead.

workers

need

suffer this year from an ending of
the Korean War/
Some

fected

companies

by

may

President

determination

to

-

af¬

Eisenhower's

avoid

ping military orders

be

and

at

A

be

ac¬

has

no

stake,

but

Company B might well feel that
application of the general in¬
crease

in such

seriously

fectiveness

manner

would tend

undermine

to

of

its

the

ef¬

incentives

in

reducing

to some, which would
them
reduce
their
labor




might

since

A,
issue

the contract hourly rate would be

profits
make

to

immediate

overlap¬

This

mean

proposal

ceptable

and above

that

costs.

could

C's

over

smaller

earnings

reduced

so

for

as

increased

These

opportunities
to

lose

their

over

pull

production.

problems

are

illustrative

nized

of

that

basic

the

action

dealing

in

with

gaining problems
than

on

by

on a group

has made for

There

has

within

than

the

with

collective
in¬

some

more

bargaining

management

the

union

group

upon

occar

sion.
In

the

lesson to

last
be

analysis,
drawn

the major

from

the

ex¬

Dek-

in the Norfolk of¬
Scott, Horner & Mason,
associated with Virginia

of

fice

is

now

Securities

Norfolk,

of

Company

Royster Building.

Economic

International
in

I

With Compton

& Wharton

(Special to The Financial Chronicle)

clear

demon¬
the Soviet's important
got

we

of

which

Moscow

-

Fla.—Ben¬

GARDEN,

WINTER

jamin

T. Shuman

has joined the

staff of Compton & Wharton.

National

advances,

Not

bore

to

host of
further figures, I can summarize
the
relative
capitalistic-commu¬
nist

progress

out that

This

remarkable1.

been

be

may

of

in

Virginia Sec§.

ker, formerly

despite their
Soviet output
still remains at barely 5% of ours.

rather

the

With

NORFOLK, Va.—John P.

Bank

First.

Building.

In motor vehicles,

bar¬

account

the

recent

for

kind of statesman¬

a

ship,
taking
into
long-range nature
bargaining, which

workers and the

to wheedle out of the West.

the vexations

individual

economy's

shortages of capital goods, par¬
ticularly machine tools and loco¬
motives—which they were trying

situation

individual basis.

an

stances

need

their

At

stration

Third, and perhaps most impor¬
tant, participating managements
in group bargaining have recog¬

World War III. This will continue

i

great extent the

a

bureaucracy, result¬

lack of

attended,

or

pracr

modified

in

Conference

local

agreement.

to give

lull employment for from

-

agreements shall be

unless

continued

local

/

Moscow.

collective farmers.

agree¬

provision

existing

to

of the industrial

uncom¬

master

specific

that

local

or

not

supplementary

stipulation

tices

is

atomic

initiative by both
management and the individual
—in
general apathy and slow¬
down.
This is particularly true
ing

em*

affecting employee output,
but
not
providing a basis for
modifying the existing incentive

it

in

years

Soviet

the
is

lagging

con¬

years

Thus

four

result of the

phases of day-to¬
bargaining which
incapable of uni¬
in

by

'/■ Surely

agreements.

foods, supplying
clothing, shelter and fuel should
continue to give full employment.

processing

stance,

cover .weapons.

in their group

master

or

are

planes to be replaced, but they all
must be kept in the air. Certain

Company C feels for various

to

ground

contracts

There

not

speaking,

.

the

with

you

by

merely pointing

compared to 1940, despite

Kremlin's

Eastern

addition

satellites,

potential

her

of

its

industrial

ST.

L.

Fla.—John

PETERSBURG,

Adamson

of Beil &

has

Hough, 33 Fourth Street,

members

North,

joined the staff

the

of

Midwest

Stock Exchange.

relative to ours' is now

actually lower than when she was
then standing alone;
that even,

according to her own biased pro¬
jections, Soviet production in 1970
will still merely equal U. S. out¬
put as of 1950; that through the
dynamics of the free economy, the
United

With Beil & Hough
(Special to The Financial Chronicle)

a

States—although

possess¬

Walter Rosenbush Opens
Walter
in

the

offices

New

Rosenbush

securities
at

York

129

East

City.

is

engaging
from

business
82nd

He

Street,

was

viously with Walston & Co.

pre¬

Volume 177

Number 5198

.

The Commercial and Financial Chronicle

.

.

15

(899)

SEVEN GREAT DIVISIONS
WELDED INTO ONE
V

INTEGRATED STEELr

MAKING STRUCTURE

$

'

d:
ii

*4

WEIRTON

STEEL

"

COMPANY

Weirton, W. Va. World's largest indfependcar? '
manufacturer of tin plate. Producer of
mmy
other

important steel products.

GREAT

LAKES STEEL CORP.

Detroit, Mich. A major supplier of stands d
and
special carbon steel products for a wLvj
range of applications in industry.

STRAN-STEEL

DIVISION

Ecorse, Mich, and Terre Haute, Ind. Exclu¬
sive manufacturer of famous
and Stran-Steel nailable

Quonset build:";?
framing.
^

r

NATIONAL
/'

STEEL

1

PRODUCTS CO.

i

/

Houston, Texas. Warehouse and distributiuSfacilities for steel products in the Southward

HANNA

IRON

ORE

COMPANY

Cleveland, Ohio. Producer of iron
extensive

You have

stake in what the steelworkers

a

Peter Helck's illustration.
ture

test—pouring

will be allowed

to

a

needs

to

be done

make it

a

to

serves

test

a

frac¬

will tell them what still

the hundreds of

one

of

our

some

open

of

tons

churning,

hearth furnaces

particular finished product.

precisely made to specifi¬
thousands of different uses in which

you—from tin

cans to

automobiles. And the

fracture test is only one of many ways in which constant
vigilance is exerted to maintain high and uniform quality.
At

approximately 800 stations in

one-tenth of




our

our

steel mills, about

employees devote full time

or part

to

steel

as

must

it

moves

to

time

the

in the

stream

of

frn-a
an

u

furnace diviL

i

and inspection of

production from

raw

shipping floor. At each station the steel

definite and

meet

measurement

rigid-standards' before it

can

pass on to

the

And in

laboratories, scientists.arid technicians work

our

continually
known

not

most

orre

only to maintain the highest standards

to develop steels of even higher quality
variety for tomorrow. It is through such

useful

That

one

of your

lowest-cost and

is

-

operations, quality always has

one

of America's

THE

reason

HANNA

FURNACE

Buffalo, New York.
for

servants.

National's

first.

in manufacture.'

that steel has become

care

In

next step

today but

and greater

Blast

production of various

types

CORP.

of pig in

come

why National has. become

largest steel producers—thoroughly

-r

integrated, entirely independent, always progressive.

GRANT BUILDING

AMERICA

analysis, testing,

materials

NATIONAL STEEL JT1

SERVING

the

to

material that is

cation for the many

it

conducting

solidify and then will be broken and

just right for

For steel is

are

doing in

small sample of molten steel which

carefully examined. Xhis
white-hot steel in

They

are

ore

holdings in the Great Lakes

CORPORATION
PITTSBURGH, PA.

NATIONAL MINES

CORP.

Supplies high grade metallurgical coal for the
BY

SERVING

AMERICAN

INDUSTRY

tremendous

needs

of

National

Steel

millj.

16

The Commercial and Financial Chronicle.

(900)

that

vestors

Tomorrow's

Walter

*

the boom

boom state of

on

dividends

(2) If

Jje

What the final outcome of

Whyte

66%

selling

much in demand

as

were

our

preference for
de¬

a

they were

which

would

i

have

few

Democrat, submits resig¬
nation to President, but will stay
on until
successor is
appointed.
sion,

declines and which could try

selling 68% higher than it is
to catch up with the general
today.
our
best
economists.
Some
market if a downturn does
(3) In spite of a bull mar¬
predict a peak of production
not come soon. That is exactly
ket that has lasted for over
this year. Others, equally bril¬
By WALTER WHYTE =
what
many
investors have
three and a half years and in
liant, say a depression is not
been doing in 1953. As a re¬
The market during the past
likely until 1954 or 1955. spite of the fact that the sult, the following groups
Dow-Jones industrial average
week
continued
to
behave
Some signs of weakness are
have actually gone up since
has risen 37% above its 1946
much as it did from August
evident already, since many
the close of 1952, while the
to October of last year, when
of the deferred demands that peak, over half of a list of
general market has gone
500
it was correcting its May to
leading trading stocks
built up during the war are
down. If we assume that one
have not sold as high in this
August advance. So far, about rapidly being filled. In the
had to take $1,000 out of the
bull market as they did in
half of the recent election ral¬
past six years, the number of
general market to buy a cer¬
ly gains have been lost in two homes built has been 39% 1946.
tain number of shares in these
selling phases. Shorter term larger than the increase in
(4) Back in 1929, people
groups (at average prices dur¬
traders are likely to be more new families. There has been were
borrowing $8,549,000,ing the years 1935-39), the^
cautious if a rally extends to
a
net
gain of about V.i in 000 to buy securities on mar¬ following figures show how
the 284-286 area, but are also
plants and equipment since gin. Today they are borrow¬
economy

will be is puzzling to

Says—

=

Exchange Commis¬

and

curities

ex¬

Resigns

Cook, Chairman of Se¬

Donald C.

if business

correct

to

cesses

Thursday, February 26/1953

.

SEC Head

of the forgotten and

as pressed sections of the market

1929, the market would be

in

wise to show
some

higher than it is today.

Jjt

Markets

be

would

market ket

the

backed away.

.

a

On

Feb.

resignation as Chairman
and Exchange

Securities

the

Commission,
but

likely to welcome
to the 274-276

any

area

decline

as

an

op¬

the

end

debts

of

1945.

secondary stocks has been

since December. This
Suggests that they may be the
good

leaders of the next recovery,

❖

sis

-f

The stock market is not

daring

as

was. It
uncharted

Columbus

as

hesitates

sail

to

Recently most of the
averages of industrial stocks
moved slightly above their
1929 highs, which of course,
means
into territory that
has never been explored
by investors or speculators.

seas.

Neither

same

a

boom in the

has

lasted

current

one

busi¬

a

sharp rise in the more spec¬

past 60 years ulative

the

than

longer

hasoccurred

stocks

the end of

near

a

In contrast, we

one.

vacancy
f i

commission,1

has

the

market

as

threat of com¬
aggression in the

the

munistic

the

in

At

1935-39.

shall not have months to pre¬

for

pare

in the

our

entry

as we

became vulnerable because of

662

LL

golds

.

equipment

chains

an

like

economy

would be Russia's best weap¬

sion

under

would

be

views

*

pictures

-

Cigarettes

632
810
454

and

it

took

18

months of indecision before it

got used to its untested

area.

1937

32% higher,
than they are today.
Fairer
historical comparisons are the
they

30% before relationship of stock prices to
market
peak was earnings and dividends, which

bull

the

In

reached.

1927,

show

finally got above its

average

same

more

the

that

the

market

is

former top made in 1919. For it was at
important peaks
four months, it hesitated and the past.
then

moved

213% higher to
In 1927 the rails,
first time, got above

its 1929 top.
for

the

their

highs of 1906. It re¬
quired a 16 months pause be¬
fore

they started another 35%

advance.

history

At

.a

peaks has

other

test
So,

of

times

previous

frightened




in

❖

*

of

icies in the utilities and securities

Instead,

Other

reasons

for

reasonable
were

in

today

1929

are

the
are

than

be¬

more

they

the follow¬

ing observations and figures:
(1) If
were

in¬ they

as

corporate

earnings

much in demand

were

in 1929, the

as

mar¬

that: I

believe

I

with great pride and

serve

in

satisfaction

Administra¬

your

tion.

"Indeed, this is only

reflection

a

good citizens first and party mem¬
bers

belief

D. J. Ind. Stks__

market's

in

the

15

of

Therefore,

as to its
likely to be

17,730

19,960

major trend is

D.J.

19,380

31,650

made after Labor

23,700

19,100

the

Utility Stks

Preferred

Stks_

High Grade Corp.
Bonds

20,000

32,650

,

Long Term Gov't
Bonds

Savings

35,700
Banks-

course

burdens

fill my

of

26,700

40,300

21,900

find a
showing

we

that

weaknesses. At the
we

find the first

terioration
economy

its

create

article

in

that

same

time,

our

could

general
cause

those

the

are

of the author

(Special

ST.

presented as

only.}

am

the
others

to

private life to ful¬

obligations to

my

family.

first

concern

is

with

public

welfare, I hope that
Administration will be a

your

Mr.
and

Cook

joined the Securities

Commission

Exchange

1935 and served

in

the staff until

on

1945. He returned to the Commis¬
sion

in

and

was

1949

as

Commissioner,

a

appointed

Chairman

a

year ago.

The vacancy in the membership
of

the

Cook

tion

SEC,

was

on

referred

caused

to

a

by

Mr.

by the resigna¬

Feb. 14 of J. Howard Ross-

bach. Mr. Rossbach had

served

as

member of the Commission since

Aug. 4, 1952, under a recess ap¬
pointment.
He
succeeded
to
a
vacancy

expiring June 5, 1957.

With Penington,
(Special

ST.

to

The

Financial

Colket
Chronicle)

PETERSBURG,

Fla.

—

George M. Lewis is with Pening¬
ton, Colket & Co.

of New York

City.

Blunt Ellis Adds
to

The

O'Connor is
&

Simmons,

Financial

111.

CHICAGO,

now

208

—

Chronicle)

Francis

P.

with Blunt Ellis

South

La

Salle

Street, members of the New York
and

to

The

Financial

Midwest Exchanges.

Lee Higginson

Chronicle)

PETERSBURG,

Fla.

—

Douglas M. Deringer has become
associated
ties
Bank

seems

They

-

truly great one."

this

necessarily at any
with those of the

I

on

With Fla. Securities

the.

circumstances,'. it

not

coincide

time

Chronicle.

trouble in the future. Under
*

do

life

for

years.

that

pass

public
to

whose

cans

clearly de¬

expressed in

views

to

17

"Together with all other Ameri¬

(Special

[The

own

signs of de¬

more

service

last

believe

I

and return

fined.

few of the strains and distor¬
tions

be

should

Day, when
of business activity

be

must

us

public
the

entitled

now

The

big decision

$18,248 $29,800

of

only thereafter. But I have

been

*

*

all

that

over

*

D.J. Rail Stks

stock market that is
lief that 1929 levels

my

pol¬

660

tax is eliminated in June.

1929

Today

Today, therefore,

*

with

530

i

are charac¬
teristic of the enthusiasm that

at

conservative levels than

Administration

your

incompatible

of

L

market

were

It then advanced

con¬

Commis¬

the

640

Utilities

(6) Sharp advances of the

$1,000 Income Per Year

1901

with

Federal regulatory

on

,

and

that

judgment

any

service

field.

Apparel

resignation, Mr.

"My decision to resign does not

could

'

•

In his letter of

347

Our leaders in

.

re¬

three-to-two vote of

a

Telephone & telegraph

distortions.

own

depression in this country general

on.

issue,

be

later

Cook stated:

Beet sugar

h

could

and

mem¬

the full commission.

639

Considering the extent of
the market recovery since the
has
developed in the last
Washing¬
this one where there has been
lows of last October, the re¬
ton are fully aware of the twelve months of past bull
a rearmament boom
cent decline is not unnatural
superim¬
markets.
During the past
need
to
keep this country
or
posed on a boom that was
surprising. It has been
twelve months, the difference
caused by the need for goods healthy economically and we
between the lowest and high¬ much like the many other
can
only hope that they will
that were not produced in suf¬
technical corrections during
be wise enough to encourage est prices has been only 14%,
ficient
quantity during the
whereas in other bull markets the recent bull market. Per¬
war.
This unusual combina¬ rotating rather than whole¬
the gains from the lows to the haps there will still be some
sale readjustments.
tion of stimulants forced busi¬
•
v-<
highs during the final twelve selling to raise money for in¬
if.
sjs
*
ness
tax
activity in January to a
payments before
months have averaged 32%. come
March 15. There will also be
peak that has never been seen
*
*
*
Healthy Skepticism and
in peacetime. This absence of
Caution
weight on the market from
Comparative Return
guideposts or maps in either
people who want to establish
Fortunately the stock mar¬
A shift from
stocks into
our
market or our general
ket has been kept in a healthy
long-term (six months) profits
more secure
types of securi¬ on stocks
economy has kept the stock state
bought around the
by its skepticism and ties is a wise
policy when a lows of last
averages in one of the nar¬ caution.
September and
Because
of
the
bull market peak approaches.
rowest ranges in
October. This could affect the
history for
change in the value of the That was easier to do in 1929
the last 19 months.
market into April. A rally
dollar, it is not fair to com¬ than
today because of the after that seems possible as
*
*
*
pare 1929 levels with those of better
yields that were ob¬
people prepare for the usual
Such caution has been seen today. When adjustments are
tainable then on the higher
seasonal uptrend that gener¬
in the past when the market made for the
change in the
quality securities, as is shown
tested historical highs. Back value
ally comes in the summer.
of
our
money,
they in the
following figures:
Such a rally could be sub¬
in 1905, the industrial
average show that 1929 stock prices
Investment Needed to Obtain
stantial if the excess profits
moved above its peaks of 1899 were 54%
higher, while in
perienced

ex¬

by

tinued

Motion

members
those

N. Y. C. banks

its

did

past two wars. A seri¬

versed

Shoes

market

peaks, this ratio was
world is evident. If there is
50% to 100% higher than it
another World War, we shall
is today before the market
be in it from the start. We

decision

769
321
379
540
645

packers

Variety

important

if

were

only three
Donald C. Cook

reflect

Specialty machinery

years

pre-war

other

there

880

Rail

in the

e-man

v

and ;t h at

653

U. S.

now

unfilled

an

bakers

Meat

as
was

long

-

Biscuit

is

there

Carpets & rugs

length of the rearma¬ ratio of an index of low
priced
ment boom is impossible to
stocks to the general market
predict. One can only reason is now about the same as it
that it will have to continue

>651

Glass containers

The

months.

sixteen

about

that

d ent

589

Confectionery

seen no

a

told the Presi-

the
*

.406

coal—

Anthracite

speculation in such issues for

*

*

*

559

i nted.

Cook,

bers split two to one on any

$630

—

Heating & plumbing.

bull market.

have

——

a

was

Democr a t,

;

drinks

Soft

pp o

Mr.

*

Auto trucks

Actually only

ness

ous

now:

until

successor

general market to:
same
number of

the

buy

(5) In the past bull markets shares
since that can be studied in detail,

doubled

have

purpose.

out of the

The

half.

a

the

a

for

$1,207,000,000

only

war,

much

tained

particularly since they have
rested during the past year
and

ing

likely to be main¬
longer. Private

which is not

portunity to add to interme¬
diate term holdings. Action

pace

the

of

agreed to

serve

much would have to be taken-

;

Eisen¬

President

to

hower his
of

Cook

C.

Donald

24,

submitted

with

Company,

Building.

Florida

Florida

Securi¬

National

(Special

to

The

BOSTON,

Financial

Mass.

—

Adds
Chronicle)

Arnold

R.

Smith had become connected with
Lee

Higginson

Federal Street.

Corporation,
.»

59

Volume 177

-

Number 5198

.v.

The Commercial and Financial Chronicle

(901)

Year's report
*

*»

of

a

.




on
AT this time of year

•

^

ties of the

previous

ance

The Home Insur-

Company reports

ance

and cents .have

..

They show .the.finan¬

been summed up.

^

cial--position of the Company and they
have

stockholders. That is proper.
But insurance is

'

attribute of
to

most—and

t

surance

important than just dollars and cents.
Insurance deals with

body

when fire

to a man

i

people. You can't

balance sheet what it

a

other catastro-

or

:•

can't put a
'enables you

with

future

that

assurance

all be undone at

it

across

1

its

exactly what

in-

know,

in,

interested

is

every

in

year's work
of

terms

people

.

.

It

is

a

good

—

know

to

be counted

can

for

things

many

suffering averted, troubles-

.

people

of mind for

peace

overcome,

In

everywhere.

a represen¬

He is The Home.

him, the Company extends

protection tot

for The

year

Company.

producer i and stockholder

city, town and village

the nation there is

U

as an.,

satisfaction to all in The Home,

that their

•

some-

you.

1952

on

family— employee and management;

■

•

President

Through him,

you.

that

is

when

loss

made

good. Through him, The Home

In

is your

values, the services of insur¬

human

who

Through
?

won't

single stroke.

a

is

tative of The Home.

You
price on protection that
to work and plan for the

phe wipes out his life's work.

great

is designed ;to do. Secondly,

practically

means

that

and resultful

Insurance

Home

need it '

you

friend, is somebody, you

'

on

aid when

look back

we

eventful

other type

any

friend is that, he will

a

your

„■

more

almost

of celebrating our 100th

eve

birthday,

,

principles of friendship. The first I

true

a

show

On the

beyond the ordinary

of business, insurance is based on the ;

come

/ ;

...

deal

great

a

.

and

much interest for investors

almost

More than

The figures,

year.

the numbers, the dollars

are

yardsticks of price and value received.

its activi¬

on

occurs,

guarantee-

friend.

BALANCE SHEET
ADMITTED ASSETS?

December 31,

.

V

United States Government Bonds

.

Other Bonds

.

.

and Common Stocks

.

Preferred

.

•

.

.

.

.

'

1952

•

$ 93,293,526.82

.

,

•

.

69,662,362.94

.

.

154,190,561.00

.

Cash in Office, Banks and

34,904,395,02

Trust Companies

15,049,406.50

Company
V

.

..

.

...

.

.

6,860,066.57

.

.

.

Agents' Balances or Uncollected Premi*
urns, less than 90 days due .....
Other Admitted Assets

.

Thomas

President,

Senior

Land

George MoAneny

4.464,325.63

$396,933,148.25

of'

Chairman

Committee,

Executive

Atlantic
....

*

Coast

Line

Reserve for Unearned Premiums

....

$171,326,998.31

•

34,346,108.04

.

7,700,000.00
1,510,607.16
3,600,000.00

•••••*

$222,855,882.49

Unpaid Losses and Loss Expenses
Taxes Payable

.

.

Reserves for Reinsurance

Dividends Declared
Other Liabilities

Investing

•

•

Total Liabilities

.

•

Capital Stock ...........
Surplus ,...... .......

$ 20.000,000.00

Regards Policyholders

of

Kenneth
Vice

K.

Harbin

Co.

Helm

First

Park

President,
Chemical

Bank

Vire

&

President

Leroy

General Counsel

Sterling

Wright
A.

,

.

President &

Secretary

J. Edward Meyer
.

&

•

Peierson

Herbert A. Payne

Wright

&

Shearman

Louchin

A.

C.

Boykin

Trust Co.

Black

Vice President & Controller

Vice

National Bank

of Columbus, Ga.

&

E.

President

Leonard

Empire Trust Company.

Trust
H.

>nt'

A. Fuller Go.

George,

Brlnie

C.

President,
Harold

4.372.168.98

.

Trust Co.

Henry

it

President;

President,

President,
Cleveland

&

ft'
Co.

Lines

(.randall

R.

Loi!

Counselor,

Wilmington, N. C.

Co.

Gund

Ceorce

Charles
»

Bank

President,

City

States

United

S. Johnson

Peoples Savings

Robert W. Dowlinc

LIABILITIES

President,

Railroad Co.

Investment

.

Joh n M, Fran klin

Coast, Line

Warren

Co.

Railroad

.

Manufacturers Trust
Company
•

President-,
Atlantic

Von Elm

of Boprd,

Lewis

&

Ros3

Honorary Chairman

Champion McDowell Davis

President

C.

Henry

Sclinader, Harrison,

Segal

Harold.v'. smith

J.

Partner,

and T. Jj Rpss

Ivy Lee

&

Co.

Harrison

Eari. G.

Company

Insurance

Title Bank
Trust

Director-,

Frederick B. Adams

18.508,593.77

-

Total Admitted Assets

Percy C. Madeira, Jr.

Clarke

Banker>

Metropolitan Life

Investment in The Home Indemnity
Heal Estate

DIRECTORS
L.

Lewis

President,

Cord Meyer

Development

Company

Lincoln
Arthur

C.

Babson

$174,077,265.76

Surplus

as

in

the

ties

Association

market
Assets

carried

Bonds

above

balance

have been
of

at

sheet

55,766.396
are

Insurance

be

Chairman

of Board,

Metropolitan Life

City

Vice President,

Insurance Company

Escort

New York

for

all

Commissioners.

bonds

5393,830,112

and

and

the

Value and Cash $83,890
required by law. All securi¬
of the National

Amortized

deposited

valued in accordance with

quotations
would

Ivan

Babson's Reports, Inc.
N;

$396,933,148.25

Total

NOTES:

154,077,265.76

as

m &

the requirements
Based

on

December

31,

1952

stocks owned, the Total Admitted
Surplus as Regards Policyholders

would be »170,974,530.

fire

,

Automobile

%.

-

W'KHWi
marine

OIN«#t;-SE'Maidtn.iiiMii
,V-«4v*

The Home Indemnify Company, an

affiliate, writes Casualty Insurance, Fidelity and Surety Bonds
.

'

>

•■

-

..

-

'ti ■■'

S
*T|

17

The Commercial and Financial Chronicle

13

Thursday, February 26, 1953

>.

.

(£02)

conceivably

cause

Britain's Move for

the

in

living. Should Mr.

of

cost

Economic Freedom

risk

that

LONDON, Eng.—The New Year

materials

witnessed

bid

bold

a

restoration

of

towards the

economic

freedom

both sides of the Atlantic. The

on

to

degree

which this
end

was

pur¬

in

the

sued

widely.

British

The

in

not

reductions

Tax

to

position

in which the government
expected to take a bold course

emulate

is

Eisenhower's

this

sweeping

mind

gesture in re¬
moving most
controls with

Dr. Paul

current

through
most revenue, but a substantial part of
restrictions on cereals and through capital items is bound to remain
de-rationing sweets.
More steps uncovered. This would be of no
are likely to follow in the same
great consequence if there were a
was

the

decisions

1953

in

made

ress

to

to be¬

reason

the British
Government will take its courage
this

that

year

and

hands

both

yrill make a

dash for freedom through remov¬

ing a number of controls even
though their removal entails a
certain amount of risk. Hitherto

been proceeding very
taking one step at a
making it quite sure

they have
cautiously
time

and

that

no

would

risk

possible to de¬

been

have

It

-involved.

was

ration

tea,
for instance,- many
months earlier than is iwas ac¬

tually

the

Likewise

is

view

that

held

sweets could

de-rationing of

the

1952.

September,

in

done

reasonably have been undertaken
some
time last year instead of

the

of

main

reasons

for

speeding up decontrol is the de¬
sire to cut downvpublic expendi¬

Estimates for 1953-54
available it is

are

not yet

that, apart from the reduc¬
tion of food subsidies, no substan¬
tial economies have been achieved.

Such

have

cuts »as
been

new

expenditure.

statement

more

the

been

than

have

In

made

offset
a

Chancellor

by

recent
of

Mr.

the

saving would be
in

duction

substantial

a

be

be

possible to economize would
through the > termination of

taxation.

of large-scale

cause

recent

has

years

hibitive

level

forced

most

thousands and to economize many

The

of

other

public
side

represented

sharp
trols

increase
are

ended

money.

of

before

the

been

adequate




Sterling?"—whatever that

o

Carl

and

means.

&

it

is to be

some

enough

possesses

in

who

induce

had

to

make

an,

the

assumption that

tion

would

dividuals

induce

to

try

profits.
of

to

Owing

taxation

lower

firms

make
to

there

in¬

high

is

rela¬

tively little inducement at present

exT

attached to it by the recent Commonwealth Economic Conference
^

W11I

^

^

fulfilled"; and

are

one

of the "con-

ditions" enumerated by Dr. Einzig
is the following: "There is to be

and both members and nonmembers of stock exchanges.
•

ers,

an

With Hamilton Manage't
*

(Special to The Financial Chronicle)

gold in terms of all currencies

we already have the
outstanding and reliable in-

Exchange,

on

March 2. Mr. Kenny

partner in H. J. Kenny & Co.
which will be dissolved Feb. 28.
is.

a

Stieglitz to Admit
Gerard L. Pears
Stieglitz & Co., 40 Wall Street,

New York City, members of the
New# York Stock Exchange, will

admit Gerard L. Pears, member
°f the Exchange, to partnership
°n
March 2. Mr. Pears was
formerly a partner in Lawrence

j

,

in the world
Currency by which the, other .' \

nations undertake to measure,
relative 'values' of their own

With Inv. Service
—

member

February 28.

—a

Colo.

Kenny

Jr.,

of the New York Stock Exchange,
will become a partner in Emanuel,
Deetjen & Co., 120 Broadway,
members of the New York Stock

ternational currency

Street.

(Special to The Financial Chronicle) *"

Kenny,

Turnure & Co.-Blyth & Bonner,
John Munroe, Exchange member, will retire from the firm

most

Management Corporation, 445

DENVER,

James

"U. S. dollar"

DENVER, Colo.—Robert L. Mc¬

Grant

1 Admit H. J.
H.

including the U- S- dollar-" What
a
fantastic
suggestion!
In
the

.

Kay is now affiliated with Hamil¬
ton

all-round increase in the price

of
«

larger

the

are

date, provided that the conditions

mem¬

ef¬

taxa¬

and

business,

bankers, brokers and deal¬

ment

on

them

securities

Emanuel, Deetjen to

convertibility of
comparatively early

a

'

'

'

•

resume

sterling at

bership being made up of invest¬

their capital. A
reduction in taxation is expected
to

the

March 4, they

on

to

ness

the all-inclusive body

NASD is

pro¬

ington

c

15

buoy¬

Inc.,I Denver, and pected to declare Britain's readi¬

directors.

tive

a

1953

in

ancy,

Fulton, NASD execu¬

1

R

N

"floating" pound sterling, let us

hope

Christensen,

is

street

20Q9 ch

sort of

a

Stolle

f

Peters, President of Peters, Writer'
Wallace H.

which

the

.

_

,

.

i

•

lalmage to Admit

\

Talmage & Co., 115 Broadway,

rej'.^ York city members of the
would,, New York stock Exchange, wui
the ' Commonweal^ Ecor adrtit
William
s
Morris
to

spective currencies; and,- it

«

appear,
nomic
Conference

Stanley G.

to

,

feels tnat tne»

=

.

'

o

keep down expenses because
Barrett, and Galen T. Thompson reliability of that yardstURiShOuldi
the greater part of any additional
have been added to the staff of
now be ruined by f urthejr "deval- ■ ■ I
i
expenses would come out of the Investment
Service
Corporation, uation" of the Dollar—which, of
Bache to Admit
pockets of the Treasury. Lower 444 Sherman Street.
course, would automatically-result
taxation would result in an allif the official price of gold were
Charles K. Smith will be adround
economy
drive
which
to be! raised in terms of American mitted to limited partnership in
With Merrill Lynch
would mean that the same amount
dollars.
Bache & Co., 36 Wall Street, New
(Special to The Financial Chronicle)
of employment would result in a

March 2.

ParfnershlP
.

i

not

crease

as
a

as

a

result of inflation

during the last 13
result

of

grave

years

than

in

failure

the

as

Beach

BEACH, Fla.
is

with

now

office

Merrill

of

coming

Miami
*

He

was

formerly

with

the firm in New, York.

removal
of

be

course

even

of

a

graver

controls.

consumers,

and

BROOKLYN, N. Y.
W. Badalamenti

.

—

Charles

is engaging in a

securities business from offices at

re¬

ductions in accordance with antic¬

ipations

would
mean
a
large
Budgetary deficit with all its in¬

LeBlang Opens

BROOKLYN,

N. Y.—Milton H.

flationary consequences. This to¬
gether with any rise in prices re¬

LeBlang is conducting

sulting

Linden Boulevard.

from

decontrols

might

f

of

t

i

an

invest¬

ment business from offices at

164

'

rtft'

sterling

Butler

are

with

any

are

1U

that

we are

so

York City, members of the New
York Stock Exchange, on March 1.

inter-

Transfer to Houston

lTrillinrt

willing to

HOUSTON, Tex.—Dunn & Wills
complish that aim, they may well have closed their office in San
be advised of the utter impossibilAntonio and the firm's business is
ity of such a move on our part, now being conducted from their

further

debase

the

before they waste

Dollar

their

to

ac-

money on

office at 711 Main Street, Houston,

the transatlantic cost of this pro¬

posed trip to Washington; for, as
I have

1578 West Sixth Street.

M. H.

to

idea that Americans

Lynch,

Pierce, Fenner & Beane, Lincoln
Building.

Eden and

Washington

-If Messrs.

Oscar

—

the

C. W. Badalamenti Opens
of

risk involved,

For

but

MIAMI
Isaacson

genuine increase of

a

produces to respond to the tax

picture

become
available.
It
that to a large extent the

supplies
seems

the

the risk of a
in prices if con¬

by

President

that

Connecticut State Chairman
Gold 'Standard League

suggestion of this sort

But if there

Mc-

Treasurer

main

The

people

capital to live

government controls. Their whole¬ productivity.
liquidation would make it
There would

possible to reduce the number of
government officials by tens of

Co.,

Francisco;
D.

deficiencies,

FREDERICK G. SHULL

:

'

,

Einzig, written from
London, and appearing in your issue of Feb. 19, under the heading,
"Will There Be a 'Floating' Pound

Cutcheon,

dissavings in

taxation

of

sale

millions

San

John

ruin our
England's

^

Paul

Dr.

Schwa&

at

undertaking as that of further
"devaluation" of the Dollar,

of the

v;'v,

coming to my attention is included
in
the regular weekly article by

partner

bacher

itself.

The latest

Members:

in

benefits, all payable

specified "numbers" of dollars,

dollar

York.

mer,

be

to be expected to

are

Dollar in order to meet

monetary

regardless of the "value"

Inc.,

H. P. Schlem-

re¬

Butler,

other direction in which it would

Co.,

New

reversing the present trend in

admitted larger amount of output. The
the
impossibility
of
making limited manpower would be used
drastic cuts without interfering to better advantage and the na¬
with social services. The only tion's taxable income would in¬
Exchequer,

in

f

Saxton

A.

&

most effective ways

One of the

of

level

foregone conclu¬

a

life insurance

Stolle,

G.

to

ounce

billion of

$500

some

—

♦

net

sion

is

Chairman:

o

dollar in all in¬

horse of a different color,
which assets are now owned by
All Americans may well hope
the people in the form of Govern- that the new Administration will
ment
bonds, bank deposits and not be led into such a dishonest

Commit¬

President

fine

a

we

Shull

Frederick G.

,

of the

scrutiny

Treasury

year's

savings

itself, to keep "afloat"
John D.
McCutcheqn & Co., Inc., without depending on the United
in
spite of the higher interest
St".
Louis; "John
F.
Bunn, Jr., States Treasury to hold it up.
rates the amount of dissavings ex¬
partner in Bioren & Co., Phil¬ Here are some direct quotes from
ceeds that of new savings. This
adelphia; Paul Devlin, Vice-Pres¬ the Einzig article on which I
is
the
most
vulnerable spot of
ident of Blyth & Co., Inc.',' New should like to comment:
Britain's economy. And it is this
York; Edward C.„ George, .Vice"When Mr. Eden and Mr. Butler
aspect of the British economy that
President of Harriman Ripley &
will see members of the United
Mr. Butler is likely to tackle.
Co.,
Inc.,
Chicago;
Gerald P. States Administration in Wash-^

of this

ture. Although the results

accumu¬

lated

—

dollars

Carl

ings to offset the inflationary ef¬
fect of the deficit. Unfortunately

waiting till February, 1953. It now fort
to live within their current
seems
that the government in¬
incomes and even to resume sav¬
tends to discard its "safety first'!
ing. Any major tax concession in
policy and will accelerate the Mr. Butler's
Budget
would be
pace of decontrols.
based on this assumption, and on
One

their

C.

tee:

corresponding surplus of net sav¬
is

there

Indeed

In

by

remove

direction.
lieve

covered

than

of

The

D.

our

ficulty in promptly bringing about
"convertibility of sterling"; but if

the

values

real

payable in'

tive

stroke of the pen.

more

our

of

Dealers, Inc., announced the fol¬

be working on

reasonably be expected to con¬
Owing to the tain any noteworthy tax conces¬
sions. For it is now generally be¬
shortages that continue to prevail
in many essential materials and lieved that the year 1952-53 will
even
more
owing to the pre¬ close with an overall deficit of
cariously
balanced
position of some hundreds of millions of
sterling, Britain has to go slowly pounds. It is true this will be
in its
progress
towards a free entirely due to capital expendi¬
economy. Nevertheless, some prog¬ ture. Current expenditure will be
a

without

lowing appointments to its Execu¬

strictly cau¬
tious and orthodox lines his Budg¬
et
statement in April could not

Einzig

cannot

people

grains
sterling.

of gold—and will
firmly establish the pound sterling
at 38.4 grains of fine gold, or at
any other gold-value that she is
willing to maintain at all costs,
there would appear to be no dif¬
$35

be "deval u~

ated"

38.4

pound

transactions

ternational

it¬

Association of Securities

WASHINGTON,
National

"goodness" of

self and the

taking.

worth

dollar

the

a

Appmts. Announced

Butler's

Mr.

Should

year.

is

exactly
per

guarantee the goodness of her own
currency — as
we
guarantee the

"devaluating"

robbing

sphere

President

it

that

of

gold

Therefore, if England is willing to

without

lars

a

NASD Exec. Comm.

another

are

feeling

the

is

there

dollar

controls.

of

removal

a

well

risk

to minimize

but

involved,

widespread

through the

achieved

penditure

Government
is

risks

idle

be

would

It

fine

of

gold

of

be
practice under which so much of cannot
their money is collected in taxa¬ raised
in
tion and spent by the government. terms of dol-

various controls. Above
government hopes that the
country will be compensated for
any price increases by the benefit
of tax reductions that could be
made as a result of cuts in ex¬

differed of
course

price

"value"

a

red" for the

instead

way

through

and in Britain

their money in their own
of continuing the

spend

will benefit through the
mitigation of the artificial char¬
acter
of
the price level which
has hitherto been grossly distorted
country

all the

States

United

course

in the hope that the

this year,

of

during the

risk

that

take

available.

are

will be prepared to

government

Dollar Devaluation

a

no

breaking the exist¬
Frederick G. Shull says British aim to ruin our dollar by
It
would
be a
devaluation in order to meet England's monetary deficiencies.
gamble but on the whole a fair
gamble with the odds slightly in Editor, Commercial and Financial seem to be quite simple, as evithe government's favor.
Chronicle:
denced by the following: Today,
The year 1953 may well prove
Whenever I see statements by the
Dollar carries a "value" of
to be the year of the dash to free¬
anybody suggesting that the offi- 13 5/7 grains of fine gold; and if
the
dom not only in the form of re¬ cial
pound sterling deserves its
price of gold should be raised
moving controls but also in the in terms of American dollars, I present ratipg of $2.80 per pound,
it means that sterling must carry
form of enabling
the people to a 1 m 5 s t "see

and points out it may result in sharp

move,

price increases, unless adequate

is

deadlock.

ing

"dash,"

though cautiously, for economic freedom by removing one step
at a time all economic controls. Sees desire to cut down public

expenditure back of

calls for

there

because

course

He may

open.

eyes

situation

the

other way for

believe British Government

will follow example of U. S. and will make a

his

with

feel

EINZIG

Dr. Einzig states there is reason to

..

take this

tax cuts he would

come

bold

this year

EDITOR:

THE

Wains British Seek

proceed with in¬

Butler decide to

By PAUL

TO

LETTER

substantial

a

rise in the cost of production and

ing could be more detrimental to
the American economy than further
can

j?

"devaluation" of the Ameridollar.

i

r*

aj'm.

Connelly to Admit

already pointed out, noth-

Frank J. Connelly, Jr. will aca membership in the' New

quire
York

April

Stock

1,

Exchange,

will

be

and

on

admitted

to

partnership in F. J. Connelly &
^ertibility
of sterling"
on
an Company, 15 Broad Street, New
equitable basis, the answer would York City.
If

England

really wants

"con-

Volume 177-Number 5198

...

The Commercial and Financial Chronicle

(903)

!•

i

•«*/» -**»«.

>

i-

*14v

•

t

..j

..

J

.*>

»

19

'

JI

.v:?

•

V

MILLIONS OF COLLARS
1000

Union Carbide
AND

CARBON

900

CORPORATION
ucc

1952 Annual

Report Summary*
:

^

■

'

"■

/

•;

■

CONDENSED INCOME STATEMENT
1952

Sales....

\

.

Provision for Income and Excess Prolits Taxes and

164,496,354

98,320,699

103,889,711

Renegotiation

Net Income....
Net Income
per

..

,

„

Share

3.41

...

Dividends Paid......

-

72,015,860

Assets

•

:

'50

'49

'52

'51

MILLIONS OF DOLLARS
180

r.

v;.y :

,

,

-

72,015,860

'
.

/

Investments in Afliliates and
Deferred

Charges

....

•

.

$472,762,802

Fixed Assets After Accumulated
.

'48

Sales

3.60

-

,

'

•'

-

Total Current Assets.

;

'47

CONDENSED BALANCE SHEET

V

•

'45' '46

268,386,065

128,987,704

'44

942,612,195

Net Income Before Income and Excess Profits Taxes.

.

1943

$927,519,805

227,308,403

,

Total Income.....

.

1951

'

$956,931,021
978,505,458

_

478,052,028

Foreign Subsidiaries. V.........

19,744,817

i...........

....

.

$469,951,529

574,498,412

Depreciation and Amortization

Patents, Trade-Marks, and Goodwill

.

24,886,567

'

5,172,117

•;

;

*

•

5,205,493

1

1

$1,072,178,149

; $978,095^618

•

:Y/
Liabilities

,

.

♦•••

•

r -1"•

'<

.">■■■

.V

f.;

.

1943 '44

$210,968,881

2.70% Promissory Notes

.........

'45

'46

'47

'48

'49

'50

'52.

-$1

$237,369,842

140,000,000

,m

3.75% Promissory Notes
Reserve for

•

:

Total Current Liabilities

Taxes and Net Income After Taxes

150,000,000

,

-K

100,000,000

Contingencies

6,381,098*

6,381,098

Capital Stock—

A:;:"/•:,-^28,274,744 shares (28,157,019 shares in
■•A.

•

:

?yr'ry -531,*600

1951)

.V.t.;...'T

208,534,466

shares (619,325 shares in 1951) held by'the

MAM

'.]■ 15-:■*

.

,204,368,035,

/> --n'vW* K

'*7 .r U* y.-y:

4

'V%Gpfj>oratioii as collateral under the.. Stock Pur;
* v\'L'"•!. I
* A
.""V" A*, •/ V; ciiase Plan for Employees.... ,T.At A.,.
V' '18,786,482
22,952,913
,

shares,.1

"1

f-' '

•./"

>,

•? 4

v'/,

'

227,320,948

Le^ineserrt'amouUtof Agnjciheiits under the
:.tvTv'Y'*:'^r^iock.Tureiw(s^ Phm.ior Employes. .Vi- vV v7-%. 718,553.970
y&*>
M
'i-AS* ? >? %}.'¥:% K Mi: 'v ik'M

.•' y*-

;•;
;

i

-

22,732,623

'

V-!

204,588,325

'

1-

^i406,06P,
s:r$

""

' '

1

V

:379,756,353^ I

'

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"

.

.

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"

u "C *

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1918'20
J

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v.pVf

i0'**1

i. v

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Carbon Corporation will he giadly lurnished'on.

y;' the report

'

•

t

*-M*( a>{>ies •• of the- complete •1952:"A.U".«»1 dlcport 61 Uiiibii Carbide and

.

.h

#iNy YMi
^
\ %\

r

•

.

1»\kki.itk, Kkk.nr, and Vixvi.itb Plastics
•

NXTioS

;Xi£tk AlUi-Eretee*




•

ti.

Carbons

Elkctkom

'

;'45 > :W'52
:

i

*'

report

•'/

and. booklet,* please write to tbe; Secretary,' Uniori Carbide and
.^-Carboii Corporation, 30 £ast:..42nclr-$treet,-...New.'York..17, N. Y.

Triule-marhtl Produt ts

Pvrokxx Gas

;''35 i '40

b,

^ .v
•;M

^'30

Dividend*Paid-:>

•

.

.

'25
^

illustrated ht^Uet tlrat; describe* the* Corporation's J V. ;,i

.^Iii^lili^tits it* expanded pmluction facilities. For copies ol the

•

'

an

*

j ..j
ir

'products—A4ioy.s,• Carbons,< .Gases,\ Chemicals, and Plastics'—ancl

;

(

"

is

request. Included with

"Ca(.

t t

•

•

,

i.

.

.

of Divisions and Subsidiaries include

Dyxrl Tkvtile FibkkS

CvkKK4i)Y

'

•

Lixde Oxvgen

•

Pkest-O-Litk Acetylene

.

Prkstoxe and

*

m'

'

i'

~

*

'

■MWm,
ww...

>

M -4 ■?
■
.

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Am UA

Flashlights and Batteries

Alloy ^atul Metals

.

•

AcHesoN Electrodes

Hayxes SteXutk Alloys

.

•

1917

Symmktic Okgaxic Chemicals

j

f

.

'

'25

'30

*35

'40

'45;

Number of Stockholders

'
•

'20

" 4

4

*

i'

v

"

'50 '52

>

4

20

(904)

The Commercial and Financial Chronicle... Thursday, February

26, 1953

J

be

The

By WENDELL T. BURNS*

about

President, Savings and Mortgage. Division,

also work of the Committee
of

Real

on

development.

Discusses

Mortgages. Stresses impressive growth
savings held in banks, and looks for this trend to continue,

about

give

making

under

the

handling of savings funds."

savings
a

few comments

a

in

general,
of

resume

I

shall

of

some

Bonds

Division of the

tally

American
is

outstanding at the

o

in

©bout

which

savings

and

their

think of

we

savings.

f
habit

of

savings
people is of great im¬

portance to the economic welfare
©f

most

that

Wendell T. Burns

the

among our

savings of the
types here dis¬

the

are

nation,.

these

important

personal liquid

as

Savings of the nation in

forms

total

now

than

more

$200 billion.

Savings of the kinds here dis¬
cussed

amounted

to $12

billion at

is a policy in
the end of 1912. They have multi¬
participate with
plied *17 times in 40 years.
They
knowing
they
are

our

It

which banks
may

enthusiasm,
contributing to the security and
happiness of our people. It brings
to

banks

another

opportunity

participate in maintaining

a

to

sound

business economy.
Banks

are

broadening

ever

their influence in this field. This
is
evident
from
the
extraordi¬
nary record of

savings growth dur¬

ing the past

year.

War II when

we

ment

and

During World

had full

high

employ¬
with

wages

a

Scarcity of things to buy, it was
not surprising that savings were

have

than

more

10 years

this

been

Banks

unexpected.

have

had

for

I-and in this accumulation of

the

I

briefly

Division

dollar: volumes

of

total of

largest Bankers

liquid

has been in banks.

savings

The combined

savings increase in banks

will

we

of

some

of

tell
are

the

report to
the things

of
the

Association

try to

things

some

to

American

is

you

which brought the total of savings
in all banks in the
country to $63.5

promotion

billion.i

sound

It

is

interesting to note

forts

largely

doing.
of

some

I

the

accomplishing and
things we are at¬

$4.8 billion for the year 1952, tempting to accomplish.

was

the

keen

so

that

creasingly

on

more

ciations

his

and

tions,

investment

believes

to

pro¬

would

existing

tinue,

thrift

other

or

also

permit

branches

though

even

institu¬

to

al¬

con¬

unlawfully

established.

his

of

associations
favorable

more

and

ready

deposit,
di¬

greater

The latter bill

approved by

was

Committee

and

awaiting ac¬
tion by Congress at the time of
adjournment in July. Plans to re¬
was

banks

must

aggressive,

in-"

be

promotion

tain

and

hold

their

share of

fices

this-

promising form of sayings
is school savings.
Five hundred
banks, principally the mutual sav¬
ings banksv have $92 million of
as

a

whole, the

For

the

$27.

under

introduced

Postal

has

-

in

-taken

center

of

These ef¬

for

Bankers
ctive

an

in

created

by

Sen¬

which

pro¬

abolishing

the System.
Savings System was

The Postal

1910.

It

was

intended

primarily at that time to encour¬
age thrift among immigrants, who

with

Our

savings

exist.

Committee

Management
survey

and

Savings
Operations last

completed

on

and

A

the

of

survey

Savings System completed

Committee, in cooperation
the Country Bank Opera¬
tions Commission, this past year
completed a nationwide survey

der

commercial

earnings that banks derive from
savings deposits. The survey, rer
veals several

It

.

conditions

present

need for

banks to determine the amount of

smaller

that

Con¬

give consideration to
question as to whether or not

the

gress

a

un¬

there

is

a

Postal

Savings System.
out that 90% of

pointed
post offices designated to receive
postal savings deposits are where
other savings facilities are avail¬
able. Only 1% are in fourth-class
post office districts operating in
was

important factors in
8%, an£ the percentage in¬ tees
whose
membership
comes the operation of a savings depart¬
crease
in
mutual savings
banks from banks in every section of the ment. For
example, operating ex? small communities. ...
was almost as great.
The total ac¬ country.
Much
of
this
report, pense is usually small; and the
Arthur Sands, Chairman of the
cumulated
savings on Dec. 31, therefore, will refer to the work
per cent of gross income retained
Subcommittee, appeared last year
1952, held in commercial banks of the committees. |
as
net
-

billion and in

tual

savings banks
mately $22.5 billion.
Another

reflects

against

life

Promotion of Savings

speaking, it is believed that

The

savings that

growth

this

Is the outstanding

year

profit contributes favor¬
ably to bank earnings. Generally

•'

approxi¬

was

of

source

similar

mu¬

past

reserves

insurance

policies.
Savings of this type also increased

capable chairman of our
Committee on Savings and Mort¬
gage
of

Development

Oklahoma

is

City.

Dal

Hogan

I would like

to say a few works about the work
of his
Committee, which has been

during the year ended aiming at increasing the breadth
last, and totaled on that and depth of savings in banks. By
date approximately $62 billion.
breadth, I refer to the effort to
8%

over

}

31

ec.

The greatest

percentage growth

in savings in the past year appears
I/-, state and federally chartered

ravings

and

loan

V leir increase

of

tne

was

year

1952

associations.

$3.1

billion for

19%,

total in share accounts

on

with
Dec.

1952, of about $19.1 billion.
I

tal is 30%

Of

savings

a

31,

This

of the dollar amount

in

the

banks

of

the

country.
In

contrast

savings

in

to

these

aged institutions,
vested
*An

of

United

growth

privately
new

man¬

money

States

of

in¬

Savings

address

Western
ence

in

the

by Mr. Burns before the
Savings and Mortgage Confer¬

the

American

Bankers

tion, Loe Angeles, Calif., Feb. 9,




able in every nook and
the country. By

avail¬

are

corner

of

depth of savings,

I

refer to the Committee's

that

savings

be

urging

promoted

more

vigorously by banks offering this
service.

This

means

adver¬

more

tising dollars for savings
tion.

The

prepared
terial

advertising
savings, and now in

on

with

the

Public

co¬

ings" booklet suggesting methods
of
reaching the public for the pro¬
of

thrift

and

the

encour¬

agement of savings accounts.
1
as

These

and

of Dec. 31,

other

1952,

figures

are

Vz

bank of at least

a

of

1%, after providing reserves for
possible losses, should be obtained
from operation of the

partment of

a

savings de¬

on

To

savings

estimated.

the

mittee

of

Postal

Service

Com¬

Congress and empha¬
facts brought out in
the
Comptroller's report.
Espe¬
cially with F. D. I. C. insurance as
a
protective measure, the small
sized

profitable but that offering thrift
facilities plays an important part

should

less

and

less

in¬

We

are

saver

hopeful

be

that

this

unnecessary

form of competition by the Federal

Government

will

eventually

be

eliminated.

fulfilling community needs, and
thereby many intangible benefits
tion

the

to

thrift

of

sound

more

bank.

The

makes
local

promo¬

possible

and

a

national

which in turn means
stronger banking institutions.
economy,

Legislation

on

Savings and Loan

Branch

One

of

the

occupied the serious

Bond

Division is that done by the

Committee

which

attention

has

of

the

past
year has been the competition of
savings and loan associations. Our
Committee
has

Federal Legislation
endeavored
to
obtain
Con¬

gressional

on

action

and, at times, the most important

as

This

its

restricting

savings deposits.
its direction, studies are in
for the analysis of quality

characteristics

a

laws

as

well

survey

of

the

preparation

investment

investing

the

mu¬

of the country.
War II, they have

World

Since

of

been
the

growing

significance

in

portfolios of commercial
the end of 1952, they

loan

banks.

At

totaled

approximately

for

lion

bil¬

$15.7

commercial

all

banks—

of what they were at

300%

represented

the end of 1945—and

of total bank loans.

25%

As

the relative volume of mort¬

in

gages

banking

system

grew,

the Division increased its interest
in

activity.

loan

mortgage

For¬

merly, this Division was known
as the Savings Division.
The name
was
changed to its present form
in. 1948.. Joe
of

Jones, the very able
this Conference, is
of

Chairman

the

Real

on

Committee

our

Mortgages.

Estate

past year has been one of
in the field of housing

The

transition
and

After

credit.

mortgage

two

of Regulation X and the
companion regulations of F. H. A.
and
V. A., these
controls were
years

This brings us

suspended last fall.

point in our economy when
excessively liberal credit terms
for mortgage loans are again pos¬
to

a

This

sible.

after

comes

at

time of rel¬

a

and

costs

building

high

atively

housing building boom of

a

It is to be hoped
that lending institutions will ex¬
ercise care in the extension of

several

years.

credit in this period.

Committee

The

Estate

Real

on

Mortgages has worked consistent¬
ly

to

domination

less

urge

of

mortgage lending by Washington,
except in time of emergency; has

urged that more reliance be put

private industry to care for

upon

financial

be

cus¬

that FHA

an
independent
political control.
"urged that FNMA be

made

again

We

its

of

needs

We have urged

of

free

agency

have

abandoned

as

support to hous¬

a

except as an ) emer¬
standby organization. That

credit,

ing

gency

and

Banking

Senate

the

before

testimony

burden of our

the

was

Housing
Legislation of 1952. Whild more
money was voted in this bill than
Committee

Currency

on

desirable

thought

we

for j mort¬

pleased to see
that Congress reduced by half the
appropriations requested. Results
gage uses, we were

have

been

what

we

have

at

times

we

have

make progress. '

not

\

but

wished,
seemed

to

have

We

protested

unsuccess¬

artificially

of

correction

fully

pegged interest rates on FHA and
VA loans. No doubt the VA 4%
has

rate

important bearing on

an

availability of funds for vet¬

the

erans'

loans.

There

doubt that bankers

be

can

no

generally wish

help the veteran, but bankers
feel that the VA should not

to

arbitrary in the matter of in¬

terest rates.

is interesting to

It

also

institutions

revealed

by

note that at
Conven¬

the last American Legion

tion,

a

formed

a

a

special
to

on

was

the Vet¬

with

interest

rates,

view to discussing the need

possible upward adjustment.

cannot

We

committee

consult

Bureau

erans

but

feel

that

flexible

interest rates in line with current

conditions
to

resolve

gage
rent

funds.

The Committee

data

utility

state

as

of

public

regulating legal investments

for savings

for

investment

of

form

tual savings banks

for

of

in

1

Mortgages

with

bonds

Division

i

Mortgages have for generations
been one of the most important

for investment of

and

the

Investments.

has

objective
the development of sound policies

the American Bankers Association

of

on

Committee

progress

out¬

invest¬

the

in

leaders

ment field.

be

Investments

One of the important tasks per¬
formed for the Savings and Mort¬
gage

and

Investments

on

pre¬

of the Com¬

members

standing

Under

Offices

matters

mittee

articles

of

also

in

accrue

by

pared

these

terested in postal savings.

commercial bank.

We believe that not only is op¬
eration of a savings department

ma¬

Rela¬

tions Council is
preparing a "Sav¬

motion

profit to

net

promo¬

Committee has already
much

operation

Associa¬

1953.

that thrift services

see

a

before

in the De¬

appeared

series

a

tomers.

recommended

This

the

in

counting Office and submitted to
Congress March 13, 1952, by the

with

over

about $41

data

zine

the

inquiry on
on
savings and on methods used
Comptroller General of the United
computing interest.
* * ♦'V
States

among

investment Of those funds.

a

in

the

that the
percentage increase of Much of the work of the Division
savings in commercial banks was is done by and through commit¬

was

The

cember issue of "Banking" maga¬

Sept. 30, 1951, by the General Ac¬

savings including an
trend of interest rates

on

of

report

Postal

nationwide

a

The

around

in

sav¬

Savings

Congress
of Utah

Bennett

vides

country
is

work

the

System." The ' American

ator

average account

Thrift

increasing

an

part in pointing out this situation
for many years.
A bill has been

Savings

deposits.

been

of lack of need for

Association

One

these

has

ings facilities supplied by post of¬

important business.
School

There

awareness

with the

research.

this

Bureau

Chairman

The Postal Savings System

American

The

ganizations participated

over

the Senate Banking and Currency

that

minded, and prepared to spend
advertising dollars liberally to ob¬

summer

like

now

this

of the

one

behind

the

loan

super¬

permit Federal

loan

and

and

state

applying to either statechartered savings and loan asso¬

for the saver's dollar' has become

around

country.

would

you

year,

and

savings
The

visions

children is

individual, and good

sav¬

past

•

is good for the bank,

Of the total growth during

ings.
the

compete

compete

can

broader

branch

appealing and promise had no
knowledge of banks, and
Work of the Savings and
ing for the future. Oyr Committee with
the hope that these people
Mortgage Division
on
School Savings and the staff
would shift their deposits to banks
The Savings and Mortgage Di¬ of
the Division
stand
ready to as
they became adapted to the
vision of the American Bankers assist any bank wishing to set up
ways of America.
Its continuing
Association has worked continu¬ such a plan..
purpose has been to provide sav¬
ously and is increasing its efforts
ings deposit facilities
in
com¬
Nationwide Surveys of Savings
to encourage the
development of
munities. where adequate savings
and Savings Cost
*
\
more savings in banks in the be¬
bank services do not

important

an

year

banks generally
are
looking with growing favor on
savings deposits and are more and introduce the branch bill favored
more prepared to
fight for them
by the American Bankers Associa¬
and
that
mutual
savings banks tion are
being made for the new
are
doing a better competitive
Congress, and careful attention
job. This is all to the good and will be
given to its progress.
most
encouraging.
Competition

I

business.

can

Committee

i

of

We

of

to

in

today
they were
ago. !This phenom¬
enal growth of savings points
up
the importance
to} banks of ag¬
gressively seeking a larger share

just

at an unprecedentedly high level.
Today when we do not have a
Scarcity of goods for sale, the high lief that this
rate of savings is as
gratifying as good for the

it has

quadrupled

the past 20 years. They are
well over 250% of what

we

select

commercial

The

the

But

sounder

This

now

the

but

cussed

To
o

They

billion.

last

A second bill

restrict

would

bill

savings

funds.

This

$3.4 billion.

was

reflect

nation;

C ncourage

and

years.

about

visor's

unprofitable

propose

reserves

of

versity

decline

a

There are, of course, other in¬
vestments and
cash; accumulations

few

comments

bases

cash

has been continu¬

$2.5

at

high in 1947

banks.

principles

that

stand

In

thrift

been

associations.

and

reserves

would

state-chartered

to

service, of greater li¬
quidity for our depositor, of more

of

year-

savings deposits.

trend

a

also

ing for several

of

savings

growth.

postal

is

investment

has

and

complete

and

There

pro¬

a

billion)

$58

operate

we

cash

we

product.

the

substantial

end.

and

First,

with

on

vi¬

remains

program

Senate

Bureau of

Research.

nomic

bonds^made
Eco¬

corporate

privileges to those permissible to,

liquid investments of banks.
do

operations.

re¬

Nevertheless, the Sav¬

important

which

greater

Nor

was

than

(almost

at¬

motion

less

all series

do¬

t

year

amounts

Bankers Asso¬
ciation

million

demptions.
ings Bond

things the Savings and Mortgage

ing,
and
tempting
do, in the

$800

over

the

during the past

Association

part to the different

conditions and legal requirements

more

After

in

due

rate

Estate

but calls for "wise

the

in

troduced

seeking this result.

of

Bankers Association and other or¬

.

Investments and the Commit¬

on

set-up

ings
and
loan
association.
In was introduced a little later at
competing with savings and loan the request of state supervisors of
associations, we need to keep be¬ savings and building and loan as¬
fore the public the advantages of
sociations.
'
doing business with a bank". Gen-"
The bills were similar. The bill
erally, commercial banks cannot
favored by the American Bankers
profitably
compete
on
interest

Mr, Burns calls attention to recent
rapid growth and expan¬
sion of individual
savings and the work of the Savings and

tee

in

differences

•

Senior Vice-President, Northwestern National
Bank, Minneapolis

?

the

and purposes of a bank and a sav¬

American Bankers Association

in this

by, the, National

incorporated in this manual branch offices of Federal savings
findings of a public; opinion and loan associations., \
.*
survey designed to, find out how
The bill sponsored by the Amer¬
much the generalii public knows
ican Bankers Association was in¬

Savings and Mortgage Picture

Mortgage Division of the ABA

studies

are

would
the

help

problem

materially
of mort¬

loans to veterans. From cur¬
comments
emanating from

brought to

Washington, the possibility of an

valuable

increase in both the VA and FHA

long

range

fitoe

ormoarc

hpttpr

than

it

has

r

o

Volume 177

for

Number 5198

long time.

a

We

increases will be

.

hope

The

.

.

Commercial and Financial Chronicle

Banks, investment trusts, insur¬ firms,
their
companies and securities ployes.

these

ance

effected.

Conclusion

This, is

•

register

of

the

of the

ence

Division.

and

at

influ¬

and

special com¬
on
special

work

Many

publica¬

useful

available

are

full

a

Savings and Mortgage

are

problems.
tions

not

work

Other

mittees

to

cover-

you

.ing all phases of savings—types,
,

promotion, costs; and

strengthen

.

their

corporations,

published

and

year

in

or

officers,
Mr.

employes,

K.

their

Funston

PETERBURG,

preparation
fortunate

in

energetic

staff

the
-

m

The Division is

now.

Drive,

em¬

having

needs and

new

able

an

who

and

alert

are

to

responsi-

new

phasized, would be subject to the

North.

He

same

is

control by the

now

exercised

Exchange

mutual

as

LOUIS,

Broad Street.

&

connected

Company,
He

was

Two With F. L. Putnam

has

Mo.—Elmer

become

L.

(Special to The Financial Chronicle)

connected

BOSTON,

New

and

for

Mass.

—

Theodore

Chaffin and Harry B. Ernst

York

and

Midwest

Mr.

McCarron

Exchanges.

Stock

formerly with Fusz-Schmelzle

&

nam

Co., Inc., 77 Franklin St.,

members of the Boston Stock Ex¬

was

change.

&

Mr. Chaffin

with Richard J.

Co.

formerly

was

Buck

&

Co.

bilities of the savings banker. We
want to work with you to develop

savings

sound and expanding

on a

basis in the banks of the country.
We

want

to

help
the

for

programs

develop

'

sound

investment

IBR^GS & Stratton] '

of

those funds.
It

of

might be of interest to
note

to

you

that the

BRIGGS & STRATTON CORPORATION

many

Savings

and

Mortgage Division came into
being just over 50 years ago. It

1952

31,

•

organized at the Convention

was

the

of

SHEET —DECEMBER

BALANCE

'

American

Bankers

[assets

Asso-

*

liabilities

ciation in New Orleans, November

11-13,

1902.

The

growth

of

CURRENT ASSETS:

sav¬

ings in the banks of the country
during the last half century has
.

j

be

just

spectacular

as

ahead, and

years

in

the

t

0

Marketable securities, at cost

"

941,836

Accrued liabilities

Provision for income taxes

Treasury notes, tax series, at cost
Receivables, less reserve of $10,000

—

....$ 7,109,940

Federal
Less — United States Treasury notes,

11,417
598,840
1,730,015

United States

those iunds wisely.

$ 1,191,056

Accounts payable

ir\7

•

(quoted market price $79,836)

50

100

$ 3,138,102

Cash

handle

may we

CURRENT LIABILITIES:

'

,

n
.

been impressive. May that growth

•>

tax series, at cost, including interest.

....

7,109,940

Inventories, priced at lower of cost

(first-in, first-out)

NYSE Members Asked

$

5,762,823

market

or

Wisconsin

.

622,679

622,679

..

..$11,241,197

Total current assets.

....

Total current liabilities.......

on
CASH SURRENDER VALUE OF LIFE INSURANCE

Corporate Members
-

Proposed amendment
tution

J

previously

Consti¬

to

(face amount of policies
INSURANCE

UNEXPIRED

approved

by

PLANT AND

Board of Governors and, if

ap¬

Land and

proved

by membership,

become

effective

-

will

it

•

about

May 1.

171,483

PREMIUMS,

Issued 599,992 shares, at stated value..... $

.

-

,

-

announced

Board

of

that

20,

the

depreciation...........

-

„

an

' :

...

Deduct

—
*

at fixed amount.'.

'

*

which,

if

adopted

the

r "

;

t

<*• y

f.

•

i

would

m^ke the

available

L

allowances and discounts......$40,612,683

;

ADMINISTRATIVE

EXPENSES '

included

.V;T'.\

«....

30,135,183

,

Keith

Funsiou

.>10,4//,9UU

operations.-..

Special Committee

on

'

ii

L

niA/Mir

OTHER

.

INCOME,

less miscellaneous

.

ening the Auction Market
New

York

Stock

BroadProfit before provision

the

on

deducting
y

Exchange. That

provision
K

for

,

taxes (after

with

'

,952

$3,065,449

was

shares outstanding.

594,298

Mr.

Funston

tin,,CiU0

of $296,646 for depreciation). .$10,665,449

adopted

"in the

The

interests

best

the public and our

of

industry."

amendment

is

PROVISION FOR INCOME TAXES:
p

The

.

.

of

number

become

effective,

must

Normal

and

surtax.

,

bers—with

a

service

"

stockholders

610 000

:

Net profit transferred to

anc'

7 600 000

we

l

has

share,

The increase In net profit

been

expended

trust

fund,

of

on

$730,0Q0

which

...

steadily

had 4.950 stockholders.

.

.

increasing;

as

of

^

expansion and new equipment
was paid into the employee

$378,000

was

applicable

to

past

benefits.

began 1953 with

'^2 was the largest in our history,
encouraging back-log of unfilled orders.

Year
a very

Respectfully submitted,

.

.$3,065,449

earned surplus..

we

year we

Our sa'es vo'ume f°r

$6 990 000

•"•••_

ap-

minimum vote of 688

February II, 1953
retirement

SC°nS,n

per

increase

an

approximately $288,000; and

■

■

proved by a majority of the mem-,

,

nort

'.

profits tax

sub¬

be

.

During the
tc

mitted to the membership and, to
„

.

,

,

Excess

being

...

$5.16

in profit before income taxes of
$|,648,21 i and an Increase in provision for income taxes of $1,520,000.
Cash dividends of $2.75 per share based on the number of shares
now outstanding, or a total of $1,634,317, were paid during 1952.

pointed

out, recommended strongly that
permissive incorporation be

or

earnings of $2,937,238 or $4.94 per share,

1951

reflects

°* $128,211

oxo1

187,947

......

,

.

.income

107

/

charges.

for the yeaf

as comPared
based on the

#10^77 enn

from

These financial statements

part of this report.

Net

fol-

lowed recommendations made by
the

Profit

as a

statements.

by Arthur Andersen & Co., and their certificate is

have been examined

'V-

mem-

committee,

;

12,708,929

69,890

<

'

.

$15,464,500

"

-

-

,

J

forth in the accompanying

AND GENERAL AND

....

-

Treasury stock, 5,694 shares, at cost.

k

•

and the results of its operations for the year ended that date are set

i./

"•

•'

ber firms..'

action

-

v

PRESIDENT'S REPORT TQ STOCKHOLDERS
Til. financial condition of th. Corporation .t December 31, IR52

1

..

—

...

1952

COST OF SALES, SELLING,

The Board's

-

$12,778,819

—

—

GROSS SALES,less returns,

to

and

future

$15,464,500

tear ended dec em iier 31,

for the

porate form of

-present
-

Less

summary of profit

cor-

doing business
i

I

.,

..
_

■

12,478,819

share)

by

member¬

ship,
-•

1,634,317

per

to the Consti-

tution

,

>

paid

,

_

"

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

Cash dividends

~~
.
Total capital stock and surplus before
deducting treasury stock
.

3,999,383

50,000

l

■

—

($2.75

$3,949,383
Patterns, tools, dies, etc.

amendment

3,065,449
$14,113,136

2,970,540

.

•

approved

ous,

Net profit for the year

$6,919,923
for

Less—Reserve

„

*

Z

—

(per accompanying
summary)

'

on

day previ-

Add

231,077

Governors, at its policy

meeting
the

Feb.

on

^

.

4,838,182

G. Keith Funston, President of
the New York Stock Exchange,

300,000

surp|us_
Balance December 31, 1951. $ I 1,047,687

1,437,889

j

Office furniture and fixtures..........

j

„

'

Earned

^

$ 412,775

Buildings and equipment
Machinery and equipment

.♦.#.$ 2,755,571

A

T

EQUIPMENT —at cost:

land improvements

i.

,

Capital stock

52,436

ETC

«t «•*••••

♦:•»»

CAPITAL STOCK AND SURPLUS:

$300,000)

r/M.iniiriiT

nm

,

—

C. L. COUGHLIN

..
'

:

President

required. Balloting will continue
through Thursday, March 5.
If the amendment is adopted

the
,

membership,

date

of

the

the

.......

by

We

effective

amendment

will

and

primarily

dealers,

engaged

business

and

whose

as

in

the

brokers

voting

by persons actively
in the business of the

encor¬

poration. Eligible non-member
„

summary

of

balance

AUDITORS'

CERTIFICATE

CORPORATION (a Delaware corporation) as of December 31. 1952,
Our examination was made in accordance with generally accepted audit¬

sheet of BRIGGS & STRATTON

profit for the

year

then ended.

,

,

BRIGCS

S

STRATTON

World's Largest

Milwaukee 1, Wisconsin, U.S.A.

CORPORATION

Builders of Single Cylinder 4-Cycle Air-Cooled

Gasoline Engines and Automotive Locks and Switches

se-

curities

be¬

come

corporations

member

could

corporations under

prescribed restrictions, Mr. Funs¬
ton stated.




...

or

stock

is' held

/ gaged

related

the

,

Corporations eligible for mem¬
bership in the Exchange would be
securities

examined

ing standards, and accordingly included such tests of the accounting records and such other auditing procedures as we considered neces¬
sary in the circumstances.
.
„
.
.
P1
,,
In our opinion
the accompanying balance sheet and summary of profit present fairly the financial position of Briggs & btratton
Corporation as of'December 31, 1952, 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.
.lf%r.„p
Milwaukee, Wisconsin
ARTHUR ANDERSEN & CO.
January 26, 1953

be

May 1 next,

those

the

have

50

pre¬

have
Streets, members of the become associated with F. L. Put¬

Olive

&

formerly

municipal
departments

fund

West

with Newhard, Cook & Co., Fourth

Shaver & Co.

member

over

become

McDonald

Newhard, Cook

McCarron

associated

was

has

with

(Special to The Financial Chronicle)

ST.

& Co., 218 Beach

the

of

manager

Lynch, Pierce, Fennef &

Joins

Fla.—James

become

with Goodbody

directors

COLUMBUS, Ohio—Richard T.
Hannum

viously with The Ohio Company,

Wiley Joins

Wiley has

(Special to The Financial Chronicle)

CANTON, Ohio — Wilma M.
Buchman has joined the staff of
Merrill

(Special to The Financial Chronicle)"

ST.

McDonald Co. Adds

(Special to The Financial Chronicle)

Beane, St. Francis Hotel Building.

t
.

With Merrill Lynch Staff

Staff of Goodbody & Co.

if

so

the proposal is adopted.

stockholders,

past

James K,

pen¬

sion funds for their employes and

Member

majority of

a

struc¬

operation* and to develop

vestments and mortgages—several

this

financial

.officers, would be able to do

variety of

a

em¬

previous occasion, a simi¬
lar constitutional amendment met

ture, to achieve greater continuity
of

and

a

Existing member firms wishing with disapproval by
to
incorporate in order to the membership.

books and pamphlets on bond in*

On

publicly, would not be eligible.

obviously

partners

•

corporations, whose stock is held

21

(905)

fBfliCGS AStkattm) 1

22

The Commercial and Financial Chronicle...

(906)

the

For

future,

the tax levied

individual

the

on

on

such

Continued

pre¬

from

Thursday, February 26, 1953

2

page

ferred share premium will be re¬

Canadian Securities

pealed but the company in ques¬
charge the total

against its tax-paid undis-

bonus

By WILLIAM J. McKAY
of 20% on the

Canada

again

pace!
Canadian Finance Minister Doug¬
las C. Abbott, in presenting his
budget for the coming fiscal year
on
Feb.
19,
sets

the

unced

anno

widespr

d

e a

reduc¬

tax

tions, com¬
prising an 11%
reduction in

personal in¬
ies

to

ef¬

be

fective
as

lev¬

tax

come

July 1,

well

as

The Security I Like Best

tion will have to

Sfma

welded

premium paid.

products;

Indus-

lock won wide acceptance by

toothtype

washers'; high quality small- tries served.
Furthermore,» the
horse-power electric motors, gen- company and its subsidiaries i own
a
saving of $63,000,000 a year in
erators, alternators and other spe- many patents, trade marks and
interest charges.
cially designed electric rotating trade names as well as licenses9 on
Mr. Abbott also announced that
equipment; and the "Lowerator," patents held by other manufacthere
would
be no increase
in
a labor saving, self-levelling storturers.
customs duties, but some tariffs
Net earnings of Harris, Hall & ing
and
dispensing, device for
Nineteen fifty-two sales-are-eswould be reduced. Included in the
Company, Incorporated, of Chi- restaurant, office and other indus- timated in excess of $100,000*003
latter are equipment used in ag¬
cago, in the year ended Dec. 31, trial use.
In addition, the com- or about twice 1951 sales of $54,riculture, fishing and mining.
1952, totaled $133,360 after in- pany continues its interest in fu- 203,999.
The fourfold increase
The total expenditures of the
ture acquisitions of well-managed from 1950 total sales of $27,517,come
taxes,
Canadian
Government
for
the
concerns with good earnings rec- 000 is a direct result of American
compared
coming fiscal year is estimated at
ords,
potential
defense
work, Machine & Foundry's aggressive
with a loss of
$4,462,000,000, of which outlays for
mass
production
possibility of diversification
program
and
t h e
defense would be slightly more $83,209
peacetime goods and aggressive growth in its activities. 1952 estiyear before,
than $2,000,000,000.
merchandising.
mated earnings of $2.25 per share
Edward
B.
In addressing Parliament, Mr.
In recent years, American Ma- compare with 1951 net income of
H a 11,
Presi¬
Abbott pointed out Canada
has
chine
&
Foundry has designed,; $1.83 per .share which does not
become accustomed to
breaking dent, stated in
developed and. perfected a ma- .include a non-recurring profit of
records in production, foreign the annual re¬
chine, known as the "automatic 33 cents per share from sale Land
trade, investment, employment port to stock¬
pin spotter," to perform the work lease-back, of two plants.
These
and
income.
He
estimated
the holders.
of
pin boys in bowling alleys, figures are based on the present
Earnings
gross national output of 1952 at
The original machine, introduced common stock capitalization after
$23,000,000,000, an increase of 7% were equal to
seven
years ago, was not satis- adjusting for the 5% stock divjover
1951.
He also listed a 12% $3.08 a share
factory and had to be withdrawn, dend paid last year and 497,73®
rise in the total wages earned by. on the "43,243
After years of extensive research shares issued during 1952 in exCanadian workers, and a sharp shares of com¬
an
entirely new model, which change for stock interest acquired
stock
rise in expenditure along with a mon
utilizes greatly different mechani- in three companies. Earnings -for
Edward B. Hall
decline in prices and an increase outstanding
cal principles than the earlier one, nine months, ended Sept. 30, 1952
in personal saving.
on
Dec. *1,
31.
was developed.
This new model were $1.51 per share on sales of
In
1952, he revealed, Canada's
Mr; ? j,po?n4u
tnrougn ]ias finauy - been successfully $67,199,000 compared with $1.03
foreign trade set new records in special effort the company s costs tested and 200
machines
were
per share on sales of $34,597,003
voiume and value, with a surplus
of
operating in 1952 were ap- t»uilt in 1952. Production schedreported for the same period last
of $150,000,000.
This contributed P.reciably less than m the preced- uje for this
year calls for over year.
Dividend payments, which
to the strength of the Canadian
ing year. He said business; volume ^,000 machines with a substantial have
been
made
continuously
dollar, a factor of considerable of Harris, Hall so far in 1953 has
production
increase
looked
for since 1927, amounted to 80 cents
importance, adding greatly to the been "substantial but not highly thereafter. The
pin spatters are per share plus 5% in common
general stability of the price level profitable" due in part to declmexpected
to
be
distributed
to stock last year,
and the rise inl real income.
ing bond prices. He referred to bowling alley operators under
The dividend was recently ra¬
Canadian-exchange reserves rose the
prospect of a large supply of lease
arrangements
whereby creased to an annual cash rate of
during the last year by $81,000,000 new financing by both business American Machine
&
Foundry
per share. Extra disbursements
to a
level of $1,860,000,000, Mr.
companies and public bodies in receives a rate equivalent to the in stock are likely to be made
Abbott announced, saying there
the current year.
pinboy's pay of 12 cents a game, from time to time.
This debt reduction represents

II.

Harris, Hall & Co.

Earnings Up in 1952

•

other

tax

ductions

re¬

and

^

eliminations.

Minister

Ab¬

in

pre-

bott,

sentin g

his

Hon.

proposals, said
they were based

C. Aboott

D.

■

confi¬

the

on

dence that the Canadian gross na¬

product
would
be
4%
higher in the coming fiscal year
than the high record of 1952.
The tax changes listed by Mr.
Abbott, in addition to the lowered
personal income levy, include the
following:
'/,.
\

tional

.

.,,

,

A reduction of the rate on

f

cor¬

poration income from the present
20% on the first $10,000 of profit
and 50% on the profits over that
amount to 18% on the first $20,000
plus 47%
$20,000.

above

amounts

on

r

•

'

.

of

4 cents

$2

thousand,

a

cigar¬

about

or

package of 20.

a

on

Elimination of the

sales tax

on

newsprint and other

books, and

on

materials

used

books and

magazines.

in

newspapers,

Repeal of license fees

on

televi¬

sion and radio sets.

Several

posed in

were pro¬

tax

proposals,
which, according to Minister Ab¬
bott, would "ease the strain, which
sometimes places too great a pen¬
alty on successful effort." Among
these, is an increase from 10% to
20% in the exemption of dividend
payments from taxable corpora¬
tions

in

new

personal

income

tax

levies.
The

loss

in

resulting
changes, Minister
Abbott estimated at $361,000,000 a
year.
He expressed confidence,
however, that total revenue for
from

the

these

revenue

tax

1953-54

fiscal year would

$4,473,000,000,

or

had been

no

,

.

be

almost $100,000,-

official intervention,

Inasmuch

except to insure orderly conditions
m

vorable

attitude

ductions

in

toward

the

made

substantial

in

re¬

taxes.

At

present the corporation

come

age

tax

Dick

corporation

in¬

March

on

A.

bott

estimated

70%

of

the 20%

that

business

as

firms

a

A JnU 111

paid by the issuing company
preferred stock which it buys

the

in

56,000

establishments in

recreation

chine

&

Foundry is understood

chines

mfght be

on

&

Foundry

pared with $28,835,000 current 11abuiUeSj wMch included $15,000,notes payable to banks due

o(K)

Book value

1954

stood

at

$15.52

&

Co., 53 State Street, members
the

nf

New

York

and

¥<hk. ana

if

«

admit
admit

Warren
warren

nex

l

Boston

Boston

Stock Exchanges, on March 2,
Arkerman
Ackerman,

oTearl
years,

erage

will

of

bowlnd

D0Wiea

mem-

mem

Whh

a

naTion^l

av

with a national av

about

ner

withinThe Pcr.sha.re at that time. The cur-

rented

10,990

vear

an

games

annual

?ear» an a^V«^»

av-

erage rental income of $1,200 per
ber of the New York Stock Exbowling
alley appears feasible.chsnge, to partnership in the firm. Assuming that about 15,000 pin
This exemption particularly
period.
His estimate of the sur¬
plus for the coming year was benefits the former preferred Mr. Ackerman in the past was a spotters would be in operation
$11,000,000, compared with $48,- shareholders of the St. Lawrence partner in Ackerman and Com- wlthin
10
years,
annual gross
000.000 during the current period, Paper Co. This firm
agreed to buy pany ,n New York City.
and surpluses of five to six hun¬ in at $60 a share its
preferred

000 more than during the 1952-53

Machine

certified able securities of $8,924,000, com-

United States. American Ma-

|.L«nwtH

BOSTON, Mass.—Draper, Sears

ums

American

'

rate.

By a provision which is retro¬
active to Jan. 1, 1949, income tax
will not be levied on the premi¬

company's 1,905,491 shares

1S evident when one realizes the assets of $49,105,000 on Sept. 39,
popularity which bowling 1952 including cash and market-

ing

AHmim. ACKBllIlall

:

pay

The

of common stock are preceded by

when

bowling alleys and^ 6,500 bowl-

•

urdper, OCdia lO

result,

will

Qoarc In

be

which is virtually par) and 14,500 shares of $5 ($103
pin boys are par) preferred stock.

hours,

enjoys

llranar

can

day without

The tremendous growth poten- jg
sounci financial and workylal
the automatic pin spotter jng capital position with current

George W. Polley and
Melander to partner:-

become

20%, including oldage pension tax, on the first $20,000, and 49% above that. Mr. Ab¬
now

a

us®^-

5, will admit James L.

Sheehan,
Henry

$10,000 profits and 52% on every¬
ship.
thing above $10,000. This levy will

all

impossible

Street, New York City, members
of the New York Stock Exchange,

is

22%, including oldpension tax, on the first

Pine at

Merle-Smith, -30

&

machine

interruption, bowling alleys with $7,700,000 of 3% sinking fund deearly morning hour patrons will bentures,
due
1953-1960, 76,003
thus be able to handle customers shares
of
$3.90 preferred ($100

Admit Three Partners

business

the

as

24 hours

operated

Dick & Merle-Smith to

the foreign exchange market.
The Canadian Government's fa¬

is revealed

features

new

the

.

*

A reduction of the tax on

ettes

r

rent price of the shares of around

22 compares with last year s high
0f

and

94

Z J
reached

an

-

in

all-time

tL*

high

1946.
m

a

8

of 45

phtnp

x*

back.

dred, million

dollars

during each

of the last six years.
In !the last seven years

'

the net

Canadian national debt had been

sold

reduced by $2,284,000,000 ^

out

their stock sometimes with¬

than one-fifth of the total indebt¬

knowing that the company Was
the'buyer found themselves liable

edness created- during World War

for income tax" on the premium.

more

W. Scott Lmn

stock having a par value of $1, the
$59 bonus being intended to cover
arrears of dividends."
People who

that time.

income!

Net

v

W. Scott
&

man

Chicago

away at the age of
vacation in Florida •

passed

th

8

after roy-

Une

alty payments, maintenance and

Lirin, partiitr In Rod-

Linn

bfe£f"

repair,

and

administration

-

industrial maenmes.
The compapy. s aggressive diver-

ex-

64 while on penses, but before taxes, is esti»
mated at .roughly one^third : or in*

sif ication ;progFam,\ permanent inin its government contracts,
V D Racnrt Onerts
Thus annual rental revenues from- further'growth '.resulting from re*
the pin spotters alone could in- cently • acquired - manufacturing
WATERTOWN, S. Dak-Victor time equ^lthe company's present companies .and./development
D. Basart is engaging in the setotal pre-tax income
9
unique labor-saving .devices fore-

the

•

r

neighborhood*

of ;•'< $6;000,900J crease

'

.

•

,

LIGHT'
'A

«

Y

'METALS tt :

the^M^ical8!4rhT^^rllhg^''^S'

Major Canadian Industry

ST;

Ross, Know!
oss, lvnowles
1

LOUIS, Mo.

.

The firm

•

addition,

* one

its

of

&

STREET, TORONTO, CANADA




! G. S. Ganes Opens
EAST C H A T H A M

and

A

A.

,r»
o.

c

New

on

Schrcibel:' Dail aeW form^ort ttroughout;EurOpe,;. gngagg
the
Middle
East
and
Africa

,

Y^—

N

Concord

Road to

in; the securRte-business,

*

!•

OODie

through

A

Opens

*

*

(special to the Financial Chronicle)

wholly-owned

subsidi-

aries; Export distribution in Latin
America and the Orient is made

through the company's own sales

California Street to engage
securities -business.

^rchants and agent;
Machine &

in the

P^sonnel and indep
Foundry

active ^research

and

ent

local

.

;

,

Oscar Stein Opens

,

(Special to The Financial Chronicle)

LOS
Stein is

ANGELES, Calif.—Oscar
engaging in a securities

erican- business from offices at 2311 Can-

aintains^mi field Avenue.

eVelppmentY

.

-

Research ^actiylUeS in
L. A. Caunter Adds
conjunction with testing jand de-:
; (Special to The Financial Chronicle)
;
(Special to The Financial Chronicle) ;
velopment of new * products and
MINNEAPOLIS, Minn,—Richard improvement of; machinery andCLEVELAND, Ohio—Anton W.
P.
Kriegler has been added to equipment have resulted in the. Ribich, Jr. has "become associated
>the staff, of Minneapolis,; ,Asso-'( design of a number oh unique with L. A. Counter & Con Park
ciates,. Inc.,
LV^^i^Lor'Saylrig features which have Building.t:t

With

<

Minneapolis Assoc.

program.

,

-

.

BAY

..,

ada,v.The company s prodiKts are fices

^ ^ d
Co.

DENVER, Colo, — Albert B.
Spbie has opened offices at 1717

Member*: The Toronto Stock Exchange
and The Investment Dealer's* Association
of Canada

330

subsidiaries

in «K»

owns and^operates:a plant m Can-. (^0^8. Gartes has opened of111

Write for a copy of our bulletin

discussing this subject.

Now Schreiber, Dail

.

.

Canada's vast

hydro-electric power resources
enable it to produce
large quantities of alu¬
minum
cheaper than any other country.
Titanium, magnesium and other "light metals"
are
steadily growing in importance.

.MUchinb & Foundry-s,»adow a -bright. future
subidiari^ years to come.

* - American
^ Ms whoUy-owned

the Medical Arts.puilding,

-

,

.

Volume 177

JA

'

^

Number 5198

.

.

V;

.

*»rf>«"^-rjr «*r,

*««#

* 1*1

W

<» *

»#^..

it*

"■•"* ?,

■

T ■**

*»1

tJMM *

* i„

*«t»,

*

fj jy^Jtt. J" •

,-jf

-,v* "V* ,«^»»f"ii(

imti*n#"

The Commercial and Financial Chronicle

(907)

23

INVESTMENT TRADERS ASSOCIATION
OF PHILADELPHIA
ANNUAL MID-WINTER

At

DINNER

Benjamin Franklin Hotel

FEBRUARY 20, 1953
President

First

Second

Vice-President

Vice-President

Treasurer

Secretary

Joseph E. Smith
Newburger A Co.

James G. Mundy

Joseph Dorsey

C. L. Wallingford

Stroud A

Merrill Lynch,

H. M. Byllesby and

Pierce,

Company, Inc.

Fenner

Company,
Incorporated ' '

A

Charles J. Brennan

OF

G. Robert Brooks

&

Co.

Rubin

Warner A

&

Henry

Co.

B. Warner
Co., Inc.

A

William Doerr
American

Securities

Corporation

A. H. Fenstermacher
M. M.

Freeman A

Co., Inc.

John M. Hudson

E- J- Jennings, Jr.

Samuel M. Kennedy

James J. McAfee

Thayer, Baker A Co.

Boenning & Co.

Yarnall & Co.,

Butcher & Sherrerd

Hardy

First Boston

Co., Inc.

Fred V. Devoll, Jr.

Kidder, Peabody

Roberts & Parke

Robert N. Greene

GOVERNORS

John P. Dempsey

Schmidt, Poole,

Blyth & Co., Inc.

Robert McCook

Janney

Beane

BOARD

/. Arthur

Edgar A. Christian

Corporation

William J. McCullen

Gordon W. Pfau

Hendricks A

Stroud A Company,

Eastwood, Inc.

Incorporated

Hacker A Co.




S. K.

Phillips, Jr.

Samuel K. Phillips
A Co.

.....

Wallace H. Runyan

Hemphill, Noyes
.A Co«

Bernard

H. Tobias

Gerstl^,£unstein

Joseph A. Zelier
Bankers Securities

Corp.

24

The Commercial and Financial Chronicle

(908)

...

Thursday, February 26, 1953

r

,

mi

1

.

■"

Underwriters
dealers

—

tt^.

brokers

0"*

V,it^

*£b

foreign v
,

Kidaer,

Investment

~

Peabody&Co-

Bonds and Stocks

nSwci£«w-

rouNDED

Securities of the
United States Government
and its Instrumentalities

ssteletype

pw

boston

L. Arnold, Goldman, Sachs & Co., New York City; Joseph Smith,
Newburger & Co.; James B. Maguire, J. B. Maguire & Co., Inc., Boston

Harry

State, Municipal and Revenue

—

Securities

VO«

NEW

Bonds, Preferred and
Industrial,

Common Stocks of

Public

Utility and Railroad

Corporations
UNDERWRITERS, DEALERS and BROKERS

Bank and Insurance

Company

Stocks

Pennsylvania Municipal Bonds
Public

Bankers'

Acceptances

Securities of the

Utility—Railroad—Industrial

International Bank for

BONDS and STOCKS

Reconstruction and

Development
Specializing in

Issues Free of the

Personal

-

Canadian Bonds

Pennsylvania

Foreign Dollar Bonds

Property Tax

Underwriter
Harry

Distributor

Yarnall

St

Co.

New York

Boston

R.

Amott, Amott, Baker & Co. Incorporated, New York City;
J. Burke, Jr., May & Gannon, Inc., Boston; John J.'
Meyers, Jr., Gordon Groves & Co., New York City

William

Dealer

•

Pittsburgh

Members of

New

York Stock

Exchange

1528 WALNUT
Bell
New

York

San Francisco

Cleveland

Philadelphia-Baltimore Stock Exchange
American Stock Exchange

Philadelphia

Chicago

(Assoc.)

ST., PHILADELPHIA 2, PA.

System Teletype

PH 22

-

Telephone

WOrth 4-481S

TRADING DEPARTMENT PERSONNEL
i

,

.

1

R. Victor Mosley,

L

vice president

)

R. Victor Mosley

Equipment Trust Certificates

Frank J. Laird
Frank J. Laird

Railroad Bonds, Guaranteed

Ellwood Robinson, Aspden, Robinson & Co.; Vic Mosley, Stroud & Company,

Leased Lines Stocks

Incorporated; Walter V. Kennedy, Coffin & Burr, Incorporated, New York City

and

Allen B. Foard, Jr.
i

Thomas F. O'Rourke

Public Utility

Bonds & Stocks

Industrial

James G. Mundy

Russell M. Ergood, Jr.

Michael J. Rudolph
Municipal Bonds

Gordon W. Pfau
Alan Crawford,

Jr.

L. Wister Randolph
Institutional Department

Robert J. Campbell

John

F.

Klingler

Sales Order Department

Edward F. Hirsch

Statistical Department
Field Representative

Felix E. Maguire

STROUD & COMPANY
Incorporated
123 South Broad Street

PHILADELPHIA 9
Tom
NEW YORK




pittsburgh

allentown

LANCASTER

Love,

Corporation,

Geo.
New

Commissioner'

Snyder «fir Co.; Maurice Hart, New York Hanseatic
York City; .George E. Snyder, Geo. E. Snyder & Co.;
B. McEntire, Securities
& Exchange Commission,
Washington, D. C.

E.

Richard

•

Volume 177

Number 5198

»

.

.

.

..

,

.

•

-•*

t,A

.—.,•

%

•«.

..

.4

& ,4 jjm

/

•

# WW

f

_A

»•

I

v

i,">*

Kr

"-T"".

Ml

-

,

iiA

P*J

r

til*

Hjy.fog'

' l*HW# ,,i

H|f

The Commercial and Financial Chronicle

(909)

IMrf#

25

UTILITIES

PUBLIC

PRIMARY MARKETS
INDUSTRIALS

WITH

COMPLETE
RAILROADS

TRADING FACILITIES
BANK

BONDS

PREFERRED

•

STOCKS

AND

INSURANCE

COMMON

•

STOCKS

W.

R. Snyder, Fidelity-Philadelphia Trust Company; G. E.
Williams, Pennsylvania Company for
Banking A Trusts; Harry Green, Merrill Lynch, Pierce, Fenner A Beane; Frank M. Ponicall, Jr.,
Singer, Deane A Scribner, Pittsburgh; W. J. Candee, Butler, Candee A Moser, New York City

Blyth Sk Co., Inc.
NEW YORK

BOSTON

SAN FRANCISCO

•

SPRINGFIELD

•

LOUISVILLE

EUREKA

Joe

Dorsey,

Merrill Lynch, Pierce, Fenner A Beane; Malcolm Weiss, A. W. Benkert A Co.,
York City; Dick Heward, Janney A Co.; Grant Campbell, Janney A
Co.;
Lester C. Brown, Wilmington Trust Company, Wilmington, Del.

Inc.,

'

CHICAGO

PHILADELPHIA

•

DETROIT

•

•

•

PITTSBURGH

•

MINNEAPOLIS

•

SACRAMENTO

LOS ANGELES

•

FRESNO

SEATTLE

CLEVELAND

•

•

•

PORTLAND

INDIANAPOLIS

•

SPOKANE

•

SAN JOSE

'

•

•

PASADENA

.

•

OAKLAND
SAN DIEGO

This Is How It Works-

New

,

Without favor

or

ing conditions,

we

prejudice and in the light of constantly shift¬
continue

search for relatively under-valued

to

securities.
The

resulting selections form the basis of almost 100 primary

trading markets, carried in the Philadelphia Office, in which
our

markets

An
to

are

firm and

interest often substantial.

our

increasing number of dealers

stop,

are

finding it advantageous

look—and do business.

H. M. BYLLESBY
1500

COMPANY, INC.

and

Chestnut Street

Philadelphia 2
Chicago

Lewis

Jacoby,
Thayer,

-

New York

Pittsburgh

-

-

Minneapolis

Thayer, Baher A Co.; John M. Hudson, Thayer, Baker A Co.; William A. Rawak,
Baker A Co.; Elmer C. Cates, Doylestown Trust Company, Doylestown, Pa.
Ogram, Swarthmore National Bank A Trust Co., Swarthmore, Pa.

Harold

Butcher

Sherrerd

&

ESTABLISHED

1910

Underwriters, Distributors, Dealers in
CORPORATE AND

MUNICIPAL SECURITIES

MEMBERS

New

York

Stock

Exchange

Philadelphia-Baltimore Stock Exchange

American

Stock

1500 WALNUT STREET

*

Exchange

PHILADELPHIA 2,

Philadelphia Telephone

A Co.; J. Myron Honigman, Pennsylvania Securities Commission, Harrisburg,
Pa.; Alfred Rauch, Kidder, Ptabody A Co.; Albert A. Marks, Jr., Newburger A Co.,
Atlantic City, N. J.; Eddie Christian, Janney A Co.




Teletype

PEnnypacker 5-2700
Joe Smith, Newburger

PH-4

New

York

PA.

Telephone

WHitehall

4-4927

26

The Commercial and Financial Chronicle..

(910)

.

Thursday, February 26, 1953

E. W. CLARK & CO
ESTABLISHED

1837

•

MEMBERS

PHILADELPHIA-BALTIMORE
NEW

YORK

AMERICAN

STOCK

EXCHANGE

EXCHANGE

STOCK

(ASSOC.)

FXCHANGE

STOCK

•

LOCUST AT 16th STREET

PHILADELPHIA

Telephones:
Philadelphia KIngsley 5-4000
New York

WHitehall 3-4000
York

Lancaster

Germantown

Jack Buckley, First Boston Corporation;
A

UNDERWRITERS

AND

Bob McCarthy, First Boston Corporation; Bill Battin, Yarnall
Co.; Russ Ergood, Stroud A Company, Incorporated; Jack Weller, Arthur L. Wright A Co., Inc.

DEALERS

Industrial, Public Utility, Railroad and Real Estate Securities

ACTIVE

TRADING

POSITIONS

Established

BlOREN

MAINTAINED

1865

6-

Co.

MEMBERS

New

York

American

Stock
Stock

Philadelphia-Baltimore
1508

Exchange
Exchange
Stock

Exchange

Walnut Street

120
New

Philadelphia 2, Pa.

Broadway

York

WHitehall

PEnnypacker 5-9400

J

5, N. Y.
3-0590

Almon L.

We Have

a

Continuing Interest in

Hutchinson, Kidder, Peabody A Co.; Charles L. Wallingford, H. M. Byllesby and Company,
Incorporated; James H. McCormack, Stroud A Company, Incorporated;
Fred Devoll, Henry B. Warner A Co., Inc.

Grinnell Corp.

American Meter

Southern Advance Bag & Paper

Keyes Fibre
Kalamazoo Vegetable Parch. Co.

BOENNING & CO.
Phila. Telephone PE 5-8200
,

New York Telephone

Teletype PH 30

COrtlandt 7-1202

Frederick T. Seving,
A1

»

Active Markets Maintained

La

Rash,

Butcher A Sherrerd; Frank J. Morrissey, F. J. Morrissey A
W. E. Hutton A Co.; Lew Tilge, Hemphill, Noyes A Co.

Co.;

«

HENRY B. WARNER

BENJAMIN A. BROOKS
FREDERICK V. DEVOLL

HENRY B. WARNER & CO.. INC.
MEMBER

PHILADELPHIA-BALTIMORE STOCK EXCHANGE

123 South Broad

Street, Philadelphia 9, Pa.

Philadelphia Telephone
PEnnypacker 5-2857
New York City Telephone:

Bell System Teletype
PH 771

BQwling Green 9-4818

Direct Private Wire to Ames, Emerich A Co., Chicago, III.
t

Direct Private Phone to Harry M. Sheely A Co.,




Baltimore, Md.
Joe

Cummings, Brooke A Co.; Tom O'Rourke, Stroud A Company, Incorporated; John J. Tierney,
Carl Af. Loeb, Rhoades A Co., New York City; John
Flynn, E. W. Clarke A Co.

Volume 177

Number 5108

.

.

.

The Commercial and Financial Chronicle

(Oil)

Effective

Distribution in the Nation's Third

Largest

Trading Area

Newburger

&

Company

Members:

New York Stock

Exchange

American Stock Exchange

•

Philadelphia-Baltimore Stock Exchange
1342 Walnut
Phone

New

York

Street, Philadelphia 7, Pa.

KIngsley 5-4500

City

Teletype PH 306

Harrisburg

UNDERWRITERS

Lebanon

Atlantic City

DISTRIBUTORS

•

Vineland
BROKERS

•

Perc Ayres, Merrill Lynch, Pierce, Fenner &
Beane; Lou

City;

Jim

Mundy,

Stroud

&

Company,

'Walker, National Quotation Bureau, New York
Incorporated; Bud Hardy, First Boston Corporation

SPECIALIZING

CITY

OF

IN

ALL

PHILADELPHIA
ISSUES

SCHAFFER, NECKER & CO.
Packard Building,
LOcust

Bill

McCullen,

Hendricks

Frank

L.

&
Eastwood, Inc.; Anthon Lund, Securities & Exchange Commission;
Newtyurger, Jr., Newburger & Co.; George Muller, Janney & Co.;
Edmund Davis, Rambo, Close & Kerner, Inc.

Philadelphia 2, Pa.

7-3646

Teletype PH 864

SAMUEL K. PHILLIPS & CO.
ESTABLISHED 1904
Members

Philadelphia-Baltimore Stock Exchange

LISTED AND UNLISTED SECURITIES
1500

Chestnut Street, Philadelphia 2, Pa.

Philadelphia
LOcust

Bell System Teletype

4-2600

PH

375

New York
COrtlandt 7-6814

Gaspe Oil Ventures Ltd.

Quebec Oil Development Ltd.
Bought
David
David

—

Sold

Quoted

Shulman, Charles A. Taggart & Co., Inc.; Charles A. Taggart, Charles A. Taggart & Co., Inc.;
Goldman, Charles A. Taggart & Co., Inc.; Herb Gesell, Kugel, Stone <£ Co., New York City

HISCOX, VAN METER & CO., INC.
INVESTMENT

LEWIS

SECURITIES

TOWER, PHILADELPHIA 2, PA.
PEnnypacker 5-1750

NEW

YORK
52

CITY

5, N. Y.

ALLENTOWN, PA.

Wall Street

HAnover

42

2-4960

Member of

South

7th

ALlentown

National

Association of

READING, PA.

Street

Colonial Trust Bldg.

3-4168
Securities

REading 3-8026
Dealers,

Inc.

EQUITABLE GAS
4V2% Convertible Preferred
BOUGHT

—

SOLD

(Prospectus

on

—

QUOTED

request)

Schmidt, Poole, Roberts & Parke
123 SO. BROAD STREET,
Dick

A. M. Kidder & Co., New York City; Arnold J. Wechsler, Ogden, Wechsler <ft Co.,
York City;
James McFarland, H. M. Byllesby and Company, Incorporated; Sid Siegel,
Siegel & Co., New York City; Nat Krumholz, Siegel & Co., New York City;

Barnes,

New

Tom

Greenberg, C.




E.

Unterberg

&

Co.,

New

York

City

Phila. Phone—KIngsley 5-0650
Bell System

PHILADELPHIA
N. Y. Phone HAnover 2-4554

Teletype PH 538

27

28

The Commercial and Financial Chronicle

(912)

...

Thursday, February 26, 1953

Dealers and Brokers in

Public Utility

Railroad

•

Industrial

•

SECURITIES
New

Jersey and

Electronic

General Market Municipal
and

Guaranteed

Television

and

Equipment

Leased

Trust

Bonds

Securities

Line

Stocks

Obligations

Bank and Insurance Stocks

Mutual

Funds

Shares

Charles A. Taggart &
Members

Philadelphia-Baltimore

Co., Inc.

Stock

Exchange

Investment Securities
1500 Walnut

Street, Philadelphia 2, Pa.

Philadelphia Phone
KIngsley 5-1716

Teletype

New

PH 677

York

Phone

WHitehall 4-7000

James

Brennan, J. G. White A Company, Incorporated, New York City; WUlie Schmidt, Laird,
Bissell, A Meeds, New York City; A. A. Geller, Allen A Company, New York City;
F. J. Smith, /. G. White A Company, Incorporated, New York City

Rambo, Close & Kerner
Incorporated

1518 LOCUST
Phila.

Telephone

ST., PHILADELPHIA 2, PA.

New York Telephone

PEnnypacker 5-2800

Teletype

REctor 2-2820

PH

63

Corporate and Municipal Securities
EDMUND

J. DAVIS

Vice President in

JOSEPH

Charge of

R.

CARSON

Manager of

Corporate Department

Municipal Bond Department

Thomas

DeHaven

Townsend, Crouter

&

&

Krug, Bioren A Co.; A1 Warner, Swain A Company, Inc.; Fred Underwood,
Boenning A Co.; Walter Schmidt, Schmidt, Poole, Roberts A Parke

Bodine

Members

New

York

&

Philadelphia-Baltimore
American

1500

Stock

CHESTNUT STREET,

Stock

PHILADELPHIA 2

Philadelphia Phone

New York Phone

LOcust 4-2900
Bell

Exchanges and

Exchange

'

System

DIgby 4-0200

Teletype—-PH 518

Distributors, Dealers, Underwriters
Corporate and Municipal Issues
Stock and Bond Brokers
New York
30

BROAD

STREET

Wilkes

Barre, Pa.

Stamford, Conn.

Deposit & Savings Bank Bldg.

77 BEDFORD STREET

3-4131

4-2148

DIgby 4-0200

Walter
New

Philadelphia's Oldest and Largest Trust Company Offers

A special

facilities




department is maintained for

of Brokers and

a

Nester, First Boston Corporation,
York
City; PhUlips B. Street,
First Boston Corporation

Herbert C. Tietjen, First Boston Corporation,
New
York
City;
Donald
McLean,
First Boston

Corporation

laroe clientele

Security Dealers. We specialize in set¬

tling and handling all types of securities transactions

locally and nationwide. Redeliveries
died

by messenger

work of

are

or as collections

Correspondent Banks. Our

promptly han

through

fees

are

our

*

net¬

moderate.

Inquiries invited.

THE

PENNSYLVANIA
COMPANY

23 Offices
rtnii

Anri

n

.1.

f°r Banking and Trusts

«

PHILADELPHIA

F„.d«ini2
Bob

Member Federsl Reserve System

•

Federal Deposit Insurance Corporation

Donovan, Blyth A Co., Inc.; Harry Hubn, Blyth A Co., Inc.; Johnny Maher, Blyth A Co., Inc.;
Newt Parfces, Bioren A Co.; BUI Ketcham, DeHaven A
Townsend, Crouter A Bodine;
John Francis, Blyth A Co., Inc.," New York City

Volume 177

Number 5198

.

.

.

The Commercial and Financial Chronicle

(913)

Penn Fruit Common & Pfd.

Philadelphia Transportation Co. 3-6s. 2039
Common & Preferred

Quaker City Cold Storage
4s of 1973

(Sen. IE.
Members

1401

Voting Trust Common

—

§>tujiter Sc (En.

Philadelphia-Baltimore Stock Exchange

Walnut

St., Philadelphia 2,

Telephone Rittenhouse 6-0308

Pa.

Teletype PH 220

New York City Phone HAnover 2-4552

John

M.

Mayer,

Michael

J.

Merrill

Lynch, Pierce, Fenner & Beane, New York City; Michael J. Heaney,
Heaney & Co., New York City; Jim McGivney, Hornblower & Weeks,
New York City; Bill McDonald, Paul & Lynch

ESTABLISHED

BROOKE

1912

CO.

&.

formerly Brooke, Stokes & Co.
Members

N

E

Philadelphia-Baltimore

Exchange

Stock

Cor. 15th & Locust Sts.

300 N. Charles St.

Philadelphia 2, Pa.

Baltimore 1, Md.

Investment Securities
i

LOCAL

—

LISTED

—

UNLISTED

H. A. RIECKE & CO., Inc.
(Member Phila.-Balt.

1519

Stock

WALNUT

Exchange)

STREET

PHILADELPHIA 2, PA.
Direct

Charles

Brennan, Blyth & Co., Inc.; Joe Laut, Jenhs, Kirkland & Grubbs; Ricky Goodman, Shields &
.Company, New York City; Syl Bies, Edward S. Ladin Company, New York City

Private

Wire

to

TROSTER, SINGER & CO., NEW YORK
INQUIRIES INVITED

Trading Markets

Philadelphia Bank Stocks
RAILROAD
RAILROAD

BONDS

REORGANIZATION

SECURITIES

F. J. MORRISSEY & CO.
Finance
Philadelphia

Building, Philadelphia 2, Pa.

Telephone

New York Telephone

Rittenhouse 6-8500 & 6-3295
Bell

Hoy

Meyer, Nielsen, Gordon & Co., New York City; Mitch Bruck, Baumgartner, Downing
Baltimore; Stanley Roggenburg, Roggenburg & Co., New York City; Les Gannon,
Peter Morgan & Co., New York City

&

System

HAnover 2-0300

Teletype—PH 279

Co.,

MERCHANTS

DISTILLING

First Securities Corporation
Member

1520

Philadelphia-Baltimore

LOCUST

Stock

Exchange

STREET, PHILADELPHIA

2,

PA.

KIngsley 5-4700

Hopper. Soliday & Co.
Established

Members

1872

Philadelphia-Baltimore

Stock

Exchange

Brokers and Dealers in

LISTED AND UNLISTED SECURITIES

1420
Telephone
John

J. Arthur Warner & Co., Inc., New York City; Hank Serlen, Josephthal & Co.,
Joe McNamee, Hopper, Soliday <£ Co., John Rcilly, J. F. Reilly & Co., Incorporated, N. Y. C.

Ohlandt,

N. Y. C.;




—

Walnut

Street, Philadelphia 2, Penna.

PEnnypacker 5-4075

Teletype —PH 593

29

30

The Commercial and Financial Chronicle....

(914)

Hal

Bill

Cliff

Murphy, Commercial & Financial Chronicle, New York City;
Schreiner, F. J. Morrissey & Co.; Bob Hart, Eular & Hart

Woodcock, Hess & Co., Inc.; J. Edward
Co.; Sam Kennedy,
Yarnall & Co.
'■
—
•, ■

Remington,
"

Drexel

f

•

r

.

Savard

Charles

King
G.

Floyd Justice, Kidder, Peabody & Co.; Jim McAtee,
Butcher

<£

'

Warren Bodman, Woodcock, Hess & Co., Inc.; Harry Snyder,
Yarnall & Co.; Robert Wehrheim, Philadelphia National Bank

William

R.

Caldwell, First
Dorsey,

Connie

Sherrerd

Boston

First

Corporation, New York
Boston
Corporation

City;

Doerr,

&

&

H.

'

Hart, New York City; Michael Voccoli,
Co., New York City;
Carl Swensen,
& Co., New York City

Walker

American

Securities

Corporation, Philadelphia;
& Co., Nev* York City;
<£ Co., Philadelphia

John McLaughlin, McLaughlin, Reuss
Jack

Duble, Parrish & Co.; Wm. Johnston, F. P. Ristine & Co.;
Stan
Jeffries, Charles A. Taggart & Co., Inc.

.

Shields,

Bill

Knob,

&

''
i

Joe

Forrest

Thursday, February 26, 1953

Dempsey,

Kidder,




Peabody

Tracy

Engle,

"Duke"

Hunter Securities Corporation, New York City;
Hunter, Hunter Securities Corporation, New York City;

Vic Reid, Eisele

Mike

Growney,

Arthur

Mike

Ross, Biddle, Whelen & Co.; Bill Herr, Alex. Brown & Sons,
Baltimore; Sydney Holtzman, J. F. Reilly & Co., Incorporated,
New
York City

& King, Libaire, Stout & Co., New York City

Joseph McManus & Co., New York City;
G. Hiscox, Hiscox, Van Meter & Co., Inc.;
George A. Searight, New York City

A1

Fenstermacher, M. M. Freeman & Co., Inc.; Desmond McCarthy,
Securities Corporation, New York City; Gus Schlosser,
Union Securities Corporation, New York City

Union

Volume 177

Number 5198

The Commercial and Financial Chronicle

•,.

(915)

Continued

jrom

13

page

tein

needs.

cut

back

will be

Agricultural Outlook for 1953
Farmers

cattle

many

building

are

holding

and

—

rapidly

herds at terrific costs.

up

Cattle numbers January
cording to predictions will
another

the

million

5

head—a

to

scramble

to

get

We have

ac¬

high

not

defer

to

profits.
but

take

will

by

choice
meat

not

roasts.

down when

be

ranchers

bid

farmers

drouth stricken

tumble

1953

as

next

up

and

ent

again in

even

should

losses

be

to

recall

of

all

out

of

1945

that

the

grades of
first

hands

$16.18.

was

in

In

1947

'

by

price

it

pasture

and

second

been

tumble

may

up

hay lands. A

and

bid

third

grade

land

high
of beef cattle prices.

cause

Beef

cattle

will

continue

the

sound

and

cow

but

calf

there

will

be

prices

«

and

Do

11%

that

over.

farmers.
a

small

in
,

means

keeping at least

a

the

due

competition for meat dol¬

ever

is

in

and.

more

to

expected

Northwest.

At the National Institute of Ani¬

take

over

more

of

Soybeans

summer.

It is a protected

lation

hold beans

turkey meat with

one: minute of labor.

being produced with

are

of

feed

chicken.

-

/

pound

per
/.

meat market.!

with

cattle

cheap

Hog farmers—along
and sheep
men, will
chicken

will be major

The

and

turkey
competition for the

future.

1,
1953

prediction

is

Laying flocks
for

farmers.

have
but
for

continue

started
farmers

of

500

to

be

or

more

profitable
as

down

winter—

usual

should

place orders
enough chicks to fill their lay¬

ing houses to capacity with early
pullets. Eggs should bring prof¬
itable prices the last half of 1953.




You

price

;

continues

high records
grows.

under

the farm.

use

.

specu¬

to

set

as

the! popula¬

are

fortunate in

having such an intensified
to maintain your incomes.

crop

cut

Push for top quality tobacco in
Penalties for low and off

grades

are

apt to increase as am¬
are being maintained.

ple supplies

It is important that farmers who

tobacco

sources

good

of

have

income.

opportunity

other

You

to

major
have

add

able
.

source

Protein

and

of income.

meals

short of need.

will

during

1953

and

purchases, for

should

re¬

go

objective
and

again

We have been

ommending that farmers
ahead—at least half of their

is

to

-

:

be
rec¬

buy
pro¬

cut

per

pound costs—and

per

helps get

higher yields
own¬

big

ma¬

use.

is

cession

in

earnings
in

the

to

temptation to cut
protein feeds when

of

economy,

short.

It

is

mistake—

a

not to keep

live¬

earnings

rail¬

standpoint.

proved to the extent of 5.6%, the
maintenance ratio increased only

new
year the
picture has been
Examination of the

business

as

As

is

ings
was

divergent trends for individual

All

roads.

from

nues

fic

has

to

accounted

date

the

coal

inventories

had

been

built

excessively high levels, and
perhaps in part to a lower export
demand.

This

situation

should

largely correct itself.
Next

to

clines

coal

have

the

heaviest

been

in

grain

de¬

and

grain products which have ac¬
counted for some 15% of the over¬
all
drop.

Presumably

this

is

largely, if not entirely, due to the
contraction of foreign markets. It
is

impossible to say at this time
just when, or if, this condition
will

it

be

corrected.

be

can

down

In

those

this

roads

break¬

to

adversely by

of traffic thus far in

Raymond F. La Pak

be

the

in¬

trend

1953 will be

*

(Special to The Financial Chronicle)

event

any

from

seen

that

CHICAGO, 111.—Raymond F.
La Pak has become associated with
Blunt Ellis & Simmons,

£08 South

La Salle Street, members of the
carriers, and
presumably particularly those in New York and Midwest Stock Ex¬

primarily

the

the

coal

northeast

and

grain.

and

roads

appreciable

Pocahontas

that

handle

volume

Otherwise

of

with

export

the

even

changes. Mr. La Pak

formerly

was

an

early

and

Ames, Emerich
Dayton

&

Go., Inc.

&

Gernon.

Prior

1953

earnings picture is consid¬ thereto he was an officer
ered by most rail analysts to be
Wheelock & Cummins, Inc.
>
quite good.

will

hold

able

more

larly

-

^

,,

fact

plenty of profit

Tobacco,

or

maintain

or

are

of

.

more

con¬

food.

I

traffic.

As

an

Street.

naturally

indication

Joins

in¬

of

\

Webber-Simpson

J Special to The Financial Chronicle) v{

CHICAGO, 111.—Roger T. Step¬
hens
son

is
&

Street,

with

now

Co.,

208

Webber-Simp¬

South

La

Salle

members of the Midwest

Stock Exchange.

.'

.

roads must be

looked

upon

Specialists in

Guaranteed

Railroad
Securities

indi¬

vidually rather than collectively.
Moreover, not only in the early

World,
starvation

months but,

period
reason

also, in the mid-year
there seems to be every

to expect that Jtio Grande's

CUAIANTEEP KAIHOAD STOCKS-IONPS

'

.

year-to-year

comparisons. will
compare most favorably with the
industry performance. The road

long-time future for agri¬
never moce

dependable profits.'

an

earlief.

car loadings
geenrally were falling off once
again demonstrates the validity of
the premise that at all times rail¬

the
a

over a year

opening month while

cost-

a

basis, becomes more hungry every
day. People are increasing faster

was

This represented

of 128%

M. Kidder & Co., 139 East Flagler

than

as a whole.
This traffic improvement in the

But—"The Amazing Popu¬
continues in the

on

more

for the Class I carriers

Upsurge"

and

to

snow

was approximately 11%
January, 1952, contrasted
with the decline in car loadings

during the next few

—

came

by the

year

above

Hogs will be profitable for ef¬
producers.

Farming will suffer from

full

January

in¬

ficient

States

the

may
be expected in early
1953, the road's traffic volume in

relatively high.

is already

costs

contend

to

indicated

what

should
expand their herds.

squeeze

for

MIAMI, Fla.—Jerry W. Larkin
has been added to the staff of, A.

Moreover, these heavy storms in

farms

ventory losses but beef will
tinue to sell

as

Den¬

seriously interfered with the flow

and soybeans
profitable crops.

A. M. Kidder Adds
(Special to The Financial Chronicle)

particu¬

a

the early months of 1952

price supports,

dairy

that

crease

com

be

Family

1952

,

Grow more of the crops which

have strong

winter

severe

$650,000.

to

management

Rio Grande had

removal

It will

maintain profits.

The

that the 1953

are

up to

ticularly
favorable
year-to-year
earnings comparisons is the Den¬

the

opportunities for farmers.

culture

indications

weather, in part to the fact that

with in

than

$19.46, which
showing since 1943?.

Blunt Ellis, Simmons

total

false-economies.

which

earn¬

to

Raymond La Pak With

about 70%
drop in car loadings
for the period. In
part this is at¬
tributable
to
generally
warm
of

&

United

the best

policies in the reasonable future,

for

& Rio Grande Western.

price

share

common

amounted

showing,

One road that should have
par¬

suggest

to

im¬

revenues

barring serious strikes
It ;is
particularly notable that' affecting traffic, should be con¬
the miscellaneous and
It is true that;
manufac¬ siderably better.
tured freight
loadings have, on the capital budget is heavy but
the whole, been
holding well to even at that such earnings pros¬
last
year's
levels.
in the opinion of many*
With
rates pects,
higher than they were at this time analysts, might well justify the
in 1952 this means
higher reve¬ adoption of more liberal dividend?

ver

sure

funds

serve

usual

industry the figures point

ver

1

Gross

fractionally and, most surprising
and
gratifying, the transportation

in railroad

or

whole.

a

soupd ap¬
proach to cost cutting. Beware of

These

take

by the

.

cost, more productive
dairy cows usually reduce costs
of milk per hundred weight.

.

roads

summer.

past.

sections and for individual

areas,

the

steel
more

ratio
was
pared by a nominal
week by week
statistics, however, margin.:; Thus, with the Federal
indicates that this
income tax reduced
showing is by
somewhat, the
no means
any cleaf indication of road"
managed
to
increase
its
a- serious
present or potential re¬ net. r Before
sinking and Other re¬

fluenced

example is joint

is

lation

.

than

lower costs.

years.

depend¬

exam¬

rather

up

of

a

cows—especially on the small
farms to expand the income with

intensified

$10.8

increase net profits. Too many
will practice false econ¬

more

milk

another

costs

discussed

much

Beef cattle will suffer

1953.

grow

Egg prices
this

tion

more

broilers but fewer turkeys.

pullets

to

of

Higher

are

on

Tobacco
new

_•

4

to

supports,

of

Poultrymen made it clear that
they will take over more of tne

find

1923.

be

1953

Agriculture, a poultryman re¬
ported he is producing one pound

pounds

peak

balance.

the,

of {^broiler

Broilers

the

stock rations at least in minimum

ex¬

expected to go up
—and farmers should
get
$3.00
per bushel or more before next

2.6

than

reached in

false

foreign business.

mal

and

less

purchase

how¬
larger than

strike of last

and

affected

western

of last year Rio Grande did
very
well
in
1952
from
an

the

disappointing.

certain of
-

*

••w

-

>

Considering the dual adversities

been

cording to

Canada,
crop,

before;produced—and is

pected to

being developed.

huge

a

in

traffic

most

steel

denial of the fact

no

iron

so was

than

traf¬

arrange¬
ments for distribution of costs ac¬

Pa¬

far

so

of

recent

has

Another

to ad¬

the

that

be

can

action

the

year

cash

in

There

in

falling off in coal

but the total of 6.3 billion is less
than the non-real estate debt—and

There

are

tired

stocks

Provo-Geneva

complex and

respon¬

this

rapidly.
debt up 8%,

up

mortgage

ership by neighbors of
chinery, with definite

.

the

earlier

year

The

and

recommending—

drouth—even

has

ever,

effi¬

more,

'

road

the

coal.

debt

the most effective ways is
to -increase
yields per acre. More

harvest—quality is

a

primarily

sible for

ferer

one

a

was

sold

Oat prices

More

by chattels

new

a

Farm

The

and

cific

lars—and

ciency

turkey

increased

It

the like periods of
has been

that

tr

industry since the development of

consist¬

and continue to
go

many areas.

meat have
importance

rapidly
in

;

and

,

farmers.

Non-real estate

the

over

in

this source, which is
by far the largest category in the
freight makeup. The greatest suf¬

bushel

prices may increase as
record large quantities are
being
held under price supports.
The
winter Wheat prospects are
poor

on

10-sow herd.
Broiler

secured

farms.

quarters

expressed

high of $7.1 billion
last
January—up 18% in a year

but

Wheat

good management program. That

usually

of

now

fertilizer

vance.

inefficient

They need to be put

now

through hogs, dairy
poultry will produce
profits. It is the cheapest of feeds,

and in pro¬

the

than

buy all needed for feed and buy

the violent

swings in the markets
are

pattern
are

down.

early.
cows

a

going up
greatly changed
are

omy.

excellent.

hogs.

cause

duction

there is

debt

'

farmers

of

farmers

that the

We have been

should sell.

in value.

up

Debts

ple,
area

Com

ones

hold

—and

or

selling at bargain prices

early

de¬

or

Beware of cutting expenditures
reduce rather than maintain

re¬

up

record

ac¬

price

look, at land

a

some

has been

ently unfavorable traffic compari¬
sons
in the
opening periods of
1953. It is
probably this decline
in car
loadings measured against

that

sheep as one of
dependable pillars of income.

is

over

recent

Concern

overall

crop land, and land
suitable for small part-time farms
near towns and industries
should

total

harvest

Highly oft'ficient hog producers
The

early.

major effort.
Already re¬
ports show farmers cutting down
on
expenditures.

num¬

probably will go

cut in the

from

needs

irregular productivity-

or

How

not neglect

rush

at

quire

in much of the Corn Belt

un¬

have

cover

Productive

will

Grain

1953.

profits

of low

billion

young

although

areas,

Corn is

ahead.

will

We

Prices leveled off

It is time to take

recom¬

for

apparently have been
again during 1952.

duced

way.

spring pig crop. It should insure
profitable hogjprices for much of

make

It is

numbers

probably

be

feed

in

area

clined in 16 states—the average
increase for four months was
only
1% for the United States..

far

increasing in the better

farming

is

doubtedly reduce hog production
further. The pig crop report

usually

statistics.

Fertilizer

areas

an

sheep.
especially

sheep

«ven

just out shows

like

are

your

have

drouth

almost

safe enterprise for farm¬

a

who

bers

Hog numbers have been cut too
far

cut

were

half.

ers

passed the low for this winter and

higher prices should

numbers

farmers short of capital.
It is significant that

Hog Prices

Hog

prof¬

your

profitable
eight years,

In

years.

mended

be

further

price adjustments along the

many

It is

be¬

program

artificial

your

It may take eight years
to get back to previous numbers.

Clarksville Trade Area. The long
term
outlook
for
beef
is
good
and

of

use

Sheep will continue

in

major Pillar of Income for the

a

Belt.

cording to the most

reached

sheep

of

to

small

a

Corn

many owners

in having a
Company plant here

a

expanding their dairy herds.

for

has

fantastically

consider

its.

on

lot

storms

farmers short.

The farm land boom is

debts

I-

prices

in

minimum

dairy herds and add to

When beef becomes less profit¬

able,

started

or

urging farmers to

breeding association. It will build
up the productive capacity of your

had

on

should

fortunate

are

Food

Make

sold

it

lot of

a

western

least

farmers

dependable milk mar-*
Farmers will certainly profit

ket.

Chicago in

shot up to $25.83 and shot
to $36.57 in
April, 1951.

capital

to furnish

easy

steers

the

been

Operators

new

ahead as the rapid upsurge
population continues.

in

year—

average

beef

catch

concentrated

and

years

of
are

that

safe

a

strength of dairy farming
be' appreciated more in the

will

passing. We need

are

winter

severe

livestock invite disaster.
Feed surpluses this year are

The

Kraft

past

warning

a

beef dollars

this

early—a

pres¬

A lot of those with beef
should be milking cows.

You

Severe

farms and

of

cattle

marketed.
•

is

Denver & Rio Grande Western

protein

End of Farm Land Boom

dairying.

prices
fall

cattle

,

situation

small

short

and

spring

the

more

beef

dependable enterprise.
of

restock

But

areas.

sufficient

Thin

of

years.

Dairying in contrast to the

-

market

cattle

production

with

continues.

at

labor

develop.

feeder

stock

will

years.

capita

especially important
vitality of breed¬

maintain the

Feeding

is

and' over

is

Hay and roughage is desperately

year ago.

chicken

the

old

it

short in most of the United
States
due
to
drouth.

and

cows

like this where drouth

areas

supplements.

ex¬

Milk production declin¬
•' ing—while the population upsurge

even

and

pull

pressures

and

will

cows

Pork

help

been

population.

as

milk

of

years

per

has

lowest in
In recent months, milk
production has been less than a

each

when

cattle

smallest in 21

27

to

spend for steaks and

will

Stacker

hold

prices

to

milk last year was the

cattle

sales

held

Dairying is not

rapidly

as

2

The

is justified—

grass

lower

less to

may

the

.

Beef

has

their

expansion

beef

number

heifers

„

.

present

as

taking

profits

year.

The

advising farmers

Moderate

increasing

use

panding

beef

more

in

It

Rations should

kept balanced to get low-cost

tl^e same—while the big ing

taking place.

and

have

mistake.

a

struck

numbers

cow

upsurge

up

.

been

almost

million

93

all-time

new

1
go

cattle continues.
-

Dairying

D^jry

inclination is to

purchased feeds.

production.
In

enterprises.
too

be

The

on

31

has

a

substantial stake in the steel

25 Broad Street

New York 4,

N.J.

Telephene BOwling Green 9-6400
Members Nat'l Assn. Securities Dealers,

In*;,

is

/

32

The Commercial and Financial Chronicle

(916)

In

The Prospects

entirely.
During the six-month period im¬
mediately after cessation of in¬
terest, the bank had the greatest
growth of savings in its history—'
and then deposits moved the other
way. It took six months to coun¬

of Interest
Rates on Savings

By J. R. DUNKERLEY*

Secretary, Savings and Mortgage Division
American Bankers Association

....

of

savings

typical

which had been

savings

a

the banks' earlier ag¬
gressive promotion of the savings
business.

from

Of

but

all

want

you

interest rate is not
some

want

bank's stockholders.

to

important

as

first

The

believe?

is

offer

kind

of

a

can

back

fo get their
immediately or on

notice,

during

even

I

a

rates

line

paid

savings accounts in

on

with

their

reduced

Now

power.

that

yields

on

i nvestments

rising,

are

would

that
should

increase

ings
it

sav¬

deposit¬
However,

is

(3) What are the costs of han¬
dling savings deposits and with¬

not

as

back

How much of the earnings

(4)

should go

has

to reserves and capital

funds?

(6) Knowing

paid

after

re¬

decides

think

you

centage to go to reserves, and your

get not

idea

will

get

into

it.

to

for

ask

will

he

We

as

since

in

that
the

of

profit, should

the rest to the saver,

pay

(a) Should

meantime

there

fair

a

have

necessary

or

the least
present de¬

pay

you

hold

to

you

capital funds, i There is no
question we are in ;an expanding

the

the

like

savers

service

this

question
The

(1)

of rate is

•••

-

•

7

•

earning,

'

c

the

of

rate

"

J.

(b) Should

R. Dunkerley

developments,
including a
rate of income tax, which

savage

require

bank to consider

a

factors- in

is

proper

In

present

high

larly the
sound
may

taxes

and

particu¬

profits tax is not

excess

because

the

tax

rates

not remain high, the Excess

Profits Tax may be
eliminated, or
there may be other forms of tax
relief for banks.

raise their rates
gree, where

the

are

coming from, and what
is there of
r

little

each

deposits

assurance

savings

interest

rate

that is greater than that
paid by
other banks.
This will mean the
need to acquire still more of an

increase in deposits and will lead
to

a

of

seesaw

rate increases.

local

competitive

-

that
over

has

praised.
riod

banks

ob¬

are

mean

tion

of

assets

with

the

20s

when

a

banks

pe¬

paid

for bank and

reasons

sav¬

due to

was

new

depos¬
expansion of

its, it will mean an
higher rate earning assets.
can

result in

warranted

Either

distortion of asset

a

distribution

beyond
by

the

limit

conservatism

or

properly supported by the bank's

total capital funds.
Factors

J

in

Determination
I'll

try

to

enumerate

factors-which
sider in

the

a

the

all

determination

con-

of

its

interest policy. Here are the prin¬
cipal questions:
(1) Do you want the type of
address

by Mr.

Dunkerley before
Mortgage Con¬

the Western Savings and

ference
Bankers

sponsored

by

the

American

Association, Los Angeles, Calif.,

February 9, 1953.




ls

sound decision.

a

determining

jUhe

P™bably in a position to raise
^ interest to savers

^

°Jning
.

average

top officers of a large metro¬
politan bank which some years

have to pay more than

the

jn

^as,

«

if to-

rate is 2.7% and

>

{

meantime, re¬
ation to

posits. In most non-departmental-

another

you

proof.

sitting at the desk of

earning rate

I
of

one

the

in

few

years,

millions of deposits by

simply of¬
fering the service and with* rela¬
tively
little
publicity.
If
they
really
publicized
their
savings

Rate is always im¬

There

is

inertia

an

tends to keep

which

savings where they

—and which tends to discour¬

changes in the habits of

age

it will be necessary
simply take the average earnbanks,

Effect

Schedule Showing

by Using

•

4

v'

i%%^3%4 <:,
1.075%.

'

if

me

bank

I

could

got all
the

across

2%

from

bank,

this

business
could

commercial

and

block

a

savings bank, or
a
savings and

or

so

seen

counts

many

association

loan
are

Excess

ac¬

savings

a

1,740,000
Prof. Tax L 210,000
Taxes

after

because

the E

on

Bond prin¬

Normally, these certificates

written for

sav¬

draw

case

five years.

interest

large amounts and
at

2%

if

3,082,299

3,2i4,744
'•

'

386,409
329,995

3,080,749
682,370

3,775,092
1,034,750

----—

2,740,342

»'

1

held

From

earnings;.' standpoint,

an

it
of
would have to increase its savings

using certificates of de¬

posit based
are

to

1.325 A.

14,341,577

.

'

2,056,414

2,398,379
■

.

■

I

■ —

r-

j

'

■

■

-

which

of their large

transferred

and

ciple.

banks

4,469,429
1,387,130

5,164,744

,

Normal & Surtax

A*

commercial

2xk %

.

1-575%

1.325%

9,872,148 10,566,485 11,260,828 11,9o5,168

.___£79,176,833

Net Income

Inc.

loan association.
Some

Rates

m-*%•.: i %% -\%^

get

a

from

more

how

they

another

walk

or

-;S25^

1

and After Taxes,

14,341,577 14,341,577 14,341,577

his Income
when Expense

explain

street

ihj

Net Income Before

on

Increased Savings Interest

f

tiply the size of this savings de¬
partment. This bank officer asked

rate

portant.

average net rate of 0.825%. 1 fie
following schedule is on the basis
to
of IV4, IV2, 1 A, and 2% ana /4,
ings of all investments; and often 1, IV4, and IV2 on amounts over
in
these
banks, fbfecommercial $5,000.
;
ized

business, they could easily mul¬

have

important.

1%. With¬

this bank has
added thousands of depositors and
a

it was a serious error in
judgment to assume that rate was

this

deposits $127 million
effect of

114%.
lion

for

that

ascertained

bank

to. offset the

raise in rate from

a

increase

An

would

be necessary to

1 to

mil¬

of $470

offset

The
due to

trouble

is
people

in this situation

the fact that many

putting their money in sav¬
loan associations under
impression that they are banks
of deposit.
When a bank goes all
the way to meet the rate of a sav¬
are

ings and

the

ings and loan association, it adds
eac^ bank must de¬ to the impression that they are
which
year, they earn no interest.
termine.
Now if |.you know the the same type of institution.
was
ahead of the procession
in If cashed the second year, they
If you find that people in your
earning rate and |he cost of op¬
earn y2%; the third year, 1%; the
bringing down the rates to savers
eration, should y<$r, bank, after community put their money in a
in line with its own reduced earn¬ fourth year, iy2%, and a full 2%
determining how much should go savings and loan because of a
ing power.
This
bank
moved if held to maturity—five years.
to reserves and
ijifghr profit to higher rate, you should not be
down faster than others.
After With average mortality, the actual
overly
concerned.
That is the
the stockholders,
|>ay the rest to
dropping from 4 to 3%, then from cost to the bank would be about
reason
for any one who
the saver; or should, you pay the right
of

I

remember

one

to

2V2

reached

clearly the

commercial

and

to 2, the bank con¬

It

was

not until it

IV2 % that there

it

dropped

because

from

during

was

any

that

to

1V2%,

but

each

succeeding
dissatisfactions accumu¬

lated; and it
cut

2

was

during this last

depositors

from their inertia.

were

a

If they

are

cashed the

first

bank

noticeable change in the habits of
its depositors. The bank began to
lose deposits rapidly, not because

change,
*An

were

ever,

creasing rate.

bank should

interest

no

tinued its savings growth at an in¬

Rate

to make

in

give

even

3

Interest

bank whose earn-

ra*e Jnn/?leration was° 05*%
whose coslt <of <operat on was 0.5%

of the ^ank, we have
to
determine
a
policy
as
to
whether savings de$psits are entitled only to the average earn-

I'll

get 2V2% from

ers.

penalty is

old and

A commercial

{V

stockholders.

to

savings service under

a

During that period, it was
invest savings profit¬
ably and there was no possibility
for a high rate to savers.
How-:

to be offset

and withdrawals.

...

After these factors are known
these terms, you can see the rel-.«
tnese
iactors^are Known,
ative
then the bank is really prepared
unimportance
of
rate
as

difficult to

are

on

if

even

an

earnings

providing

paid.

from them subject to the
penalty
of a higher rate. If the

?

the

ings and loan failures

expansion of the existing distribu¬

j

We went through

in

of the

not

(5) If increased deposits

tained, at least it will

.t

these

seeking funds at any price. Then
sufficient to offset the loss caused we went through a period in the
by the increased rates on present 30s when we thought rate was of
no
deposits? ■,
:
significance.
Many bankers
claimed that depositors were in¬
(4) If the increased deposits
terested only in safety and that
are
obtained, in theory at least
they will have to come from an they would put their money in
increased

a

was

later, I want to discuss

of

considerations;
but first of all, I want to mention
one

increase of volume

an

A reasonable r^tp of return

deposits

handling savings

costs of

Amount needed to build re-

i

*

should

bank would

of interest

rate

its

I'd like to insert here the analysis of a commercial bank wit
ago discontinued the payment of ings of the bank orviwhether the $278 million of savings deposits,
it has been my observation any interest on savings. Recently investment policy (fjlLthe bank al- At the present time, the bank pays
locates mortgages aSict other long- 1% up to $5,000 and
k of 1%
a period of 25 years that rate
they decided
they would take
term investments to; savings de-r above $5,000.
never
been
^hisresults ln_*V
properly
ap¬
savings so long as they did not"

A

a

new

sav-

(4)

for doing so, to
When you can build
billion-dollar business by

"

A

and loan assobid-

money.

manship.

factors?

handling

of

cost

in?o\
(3)

compared with service and sales¬

4% on savings and 2% on com¬
community mercial funds. Some savings and
to the same de¬ loans paid dividends of 8%.
One

(3) If the banks of

up

unless there is

plan

regular

a

save

The

„(2)

they know from experience

that it is difficult,

and bank,
determined after a
thorough consideration of all

pecu¬

resulting from

cause

propriate rate fair to depositor

on careful
analysis will prob¬
ably result in a bad decision.
(2) An increase of savings in¬

liar costs situation

1

(c) Should you choose an ap¬

than

of the

you

itable?

approaching this problem,
let's keep these points in mind:
(1) Acting on emotion rather

because

rates

competitors,
even
lose on the savings
operation, knowing that your
overall operations will be prof¬

rate under present conditions.

terest rates

whatever

meet the

your

though

many

determining the

you pay

to

necessary

of

repeat
when

without
knowing for sure that the operation will be profitable under the
new poiicy.
Our cost studies have
chmwn
shown that thprp is a great variathat there is a great varia¬
tion
among
banks as to their
earning rates and also as to their
raise

bank.

be-;

'20s

savings funds, I

ding f0r

deter-

to

,*

the

of

like to think that no

usually

The

mine: 'r

don't want to

we

mistakes

banks and savings

from earnings. 77
.* '1
fundamental approach
to

come

he will earn:
Despite the low earnings,

1.91%.

funds should

capital

ana

intel-

an

ciations outdid each other in

inhn inflated

as

Our increased reserves

economy.

will

contract for 15 years,

posits?

been other de-

well

economy, as

carries through his

he

since
the

and

back is what he has put
If

,

worked
out their cost figures
without the help of the ABA. 4

morley

lose;: sight of the
building reserves

of

importance

cent of yield. All he

one

.

ligent decision. Several hundred
banks have availed themselves of
this service, and other banks have

befter rate, and
for banks,

a

not

must

'

simple

get

can

is really trouble

his

He

get?

7

,

absolutely necessary to

the

of

lot

A

losing;Uo

,

Then how much do

back.

money

rate.
are

we

it

ever

for eight

money

in

terested

cost of the
this saver,

Suppose

.

usually attracted

He is

gets.

money

he

what

of

the

toward

putting in

years,

earning rate,

your

of operation, the per¬

costs

your

fair rate of

a

stockholders?

to

saver

one-half

about

certificate.

What is

(5)
turn

the

If

interest; and, moreover, he doesn't
get back all he put into it. He gets

drawals?

their

to

ors.

rate of the bank?

seem

logical
banks

rate

it

$1,000.

,

,

,

*n&s operation,

competitors is investment money.
Much
of that money will move when-

savings instalment

(2) What is the present earning

earning

he

certificate for
wants his
money
back at the end of one
year, how much interest do you
suppose he gets?
Well, as a mat¬
ter
of fact,
he doesn't get any

which usually goes into
savings accounts, or do you also
want investment money?

money

,

For ever ten years, the ABA
has offered a cost accounting proto a bank by its advertising and cedure with which banks can depromotion. Last of all, he is in- termine these factors which are

organization which sells a 15-year

During the 1930s, banks were
compelled to reduce their interest

0.25
1.02
1.11

.

^ large banks which are high^ departmentalized, a good case
can usually be made for the allocation of mortgages and longteriy investments to savings dePoslts- As a matter of fact, if a
bank of this type does not do so,
^ could n°t show a profitable sav-

expect

short

paid

profit before taxes

,

a

period of economic stress.
The
typical savings depositor is interested primarily in convenience of
location and the type of service

billion-dollar

a

This

highly liquid assets that cus-

very

as

proof

interest
Net

the

2.38%

Income earned

reserve

onF^in

go

of

Operating expense

year,

bank
bank puts?its funds in

tomers

proof that

some

cash

a

depositor.

should

money

promotion and the type of
service performed.
Do

the

such

is

so

in ±h£ vast mathere are only
a

non-depart-

2,200

over

mentalized banks.
Some
overall averages are:

averages

transactions

essentially

because

conveni¬

and

location

is

so

cases,

12

to

money

is the privilege of doing
one's banking at one location;,

ence;

of
2

is

for

of

importance

rate is important,

course

so

It

period of over¬

a

the

emphasizing
rate.

in

are

we

jority

in

costs

A

account.

account

the

as

Commission analyzed

Operations

to take a look at the 'characteris-.

tics

high

as

much difference anyway.
#
^ savings cost analysis recently
completed by our Country Bank

.

At this point, it might be well

;

just

mortgage rate so it doesn't make

Account

•

is

rate

loan

an

anyway.

Characteristics of the Savings

about $1,000;, and

Now

had

have

deposits

built up by

of determining proper interest
rate on savings, and factors involved in determination of a
bank's interest policy. Points out there is an inertia in habits
of savers, and interest rate is not as important in attracting
deposits as some believe, though it is error to neglect is as a
factor in encouraging savings. Reviews characteristics of sav¬
ings accounts and stresses importance of building up reserves
and capital funds. Lists as determinants in fixing interest
rates: (1) earnings of the bank; (2) its costs; (3) amount
needed to build reserves; and (4) providing a reasonable re¬
turn to

would

banks

increase in

interest

teract the inertia

ABA official discusses problem

I

these

typical case, a bank

another

discontinued

Thursday, February 26, -1953

...

aroused

H/4%.

■

least

Some banks which thought rate
was

important than it is

more

somewhat

disappointed
increase

moderate
Most

raise to 1V2%.

of data which

banks

their rate

in

which

at

are

loan

or

late;

the

go

limit

of> the savings

the loss in deposits

choose

go

associations,?, \

a

Competition
Loan

As

a

^Savings

and

Associations

general rule, a bank should

and

savings

loan. You
if they

should be more concerned

to

the competitor
better service

renders
The

raised

substantially have been

relieved to

and

the

meet

the

deposits.

have

necessary,

and

jThjs is the type

he

does

a

better

because he
or

because

promotion

job

especially among younger people.
In most sections of the country,

to meet- the rate of a savings are again pouring into
the banks. This is due largely to
savings and loan association. Usu¬
considerable increase in the inr
the
stepped-up
advertising for
ally a savings and loan associa¬
flow of savings funds in recent tion should pay a higher rate of savings.
If we'd step it up to
checked.

see

Since

there has

months, it is difficult to
the

effect

of

the

rate.

been

never

try

a

measure

dividend because

Most

kind of

of

an

it is

institution.

a

different

where

it

really

ought to be, we

might find the money coming in

Volume 177

"Number 5198

.

.

The Commercial and Financial-Chronicle

.

(917)
fast

as

overlook
It

is

we'd

as

to

to

take

the many years

The Ontlook lor

of inertia.

months ^and

the

overcome

effects

during which

of

in terms

more

of savers;

i.e.

especially
attract

dollars

will

selves.

If

of

the

have

com¬

experienced.
Further¬
more, the type of savings which
belong in banks will come to our
ever

over

The

by

buying

the invasion

in

touched

waves

of

South

last

off

Korea

June, 1950, and by the discov¬
of

ery

Chinese

Armies
in

in

the

Northern

e&rly

Cinti. Municipal Men
To Hold

we

we are

we

we

—

of

like

20

cents

1950

and

in

estimates,

we

again last

spite

the

the

buying

Outlook

did

we

absence

of

it

of

did

was

de¬

year,

sudden

any

the
Kenwood
Country Club,
Cincinnati, Ohio, Friday, June 26,
1953. Cocktail party will precede
Thursday evening June 25, 1953.

been
to

In

for

of

increases

well

to

ment

as

two

of

spending show

of

net

of

the

change,
with

Midwest

have

Harris,

Stock

become

Upham

Co.,

135

Sputh La Salle Street. Both were
partners in Alger Perrill & Co.,
which has been dissolved.

we

yearly

Chicago

111.—Harry J. Wil¬
engaging in a securities

Salle
of

name

Mr.

Harry

Wilson

ciated

Co.

Street

under

J.

the

Wilson

firm

&

Co.

was

formerly asso¬
Barcus, Kindred &

with

for many years.

and

again

in

of

developed.

are

pattern

FRANCISCO, Calif.—Elec¬

Riese

trend in the loss ratio

tire population.
With

this

qualification, let

indicate what I

savings
in

seem

about

were

me

when I say

mean

in

line.

We

the last 25 years to have

developed Tfour

distinct

patterns

after taxes

$55 billion
ended

we

less

was

than,

with

up

say

$50-

Below this level

a year.

negative

Montgomery

saved

we

During the
all

been

about

know,

than

20

period,

war

saved

we

as

you

much

more

each

addi¬

come

disturbed when I remember

what

happened to the size of the

a

1932.

With State Bond & Mtg.

20

tional

cents

now

Financial

debt

money

Chronicle)

Minn. —Philip

J.

connected with State

Mortgage Co., 26 xk North

L. A.
.(Special

to

supply
by

Huey Adds
Financial

wartime

OMAHA, Neb.—Dent

B.

follow

talking
But

subject

our

about

this

that

the

war

There

is

have

chief
and

Ernest

Loveman, a
Goldman,
Sachs
&
York
City, Feb. 24,

partner

Co.,

of

New

1953 com¬
pleted 50 years of continuous as¬

is

If

that

Underwriting Expenses

given

you

four

Net

last
quarter-century, and
develop yet another. Remem¬

and

unavoidable

expenditures. A

large fraction of expenditures
be

deferred

savings

or

—

41.81%

$97,193
1,088,523

Tax

$2,161,456
634,020

$1,185,716
448,219

a

share basis and adjust-"

ance

with

the

usual

unearned

formula

of

per

premium

40%,

the

reserve

achieved.

less

and

personal

in¬

saved

some'

evidence

developing

with

the

firm.

we
we

Rejoins Slay ton Co., Inc.
(Special to The Financial Chronicle)

ORLEANS,

La.—Michael
J. Cousins has rejoined the staff
of Slayton & Co., Inc. of St. Louis.
recently been with Renyx,
Co., Inc.




diffexcpce between

a

new

our new

vprewar

inet saving at all. In¬
stead of $5Q-$55 billion, we now
need $140-$150 billion of
dispos¬
able

income

before

we

anything net. This change is

primarily

a

result

of

the

war-

generated inflation. To

me

equally

find

interesting

to

•Synopsis of talk by Mr. Bopp

it

Auchinclose, Parker & Redpath,
members

of the

New York

Stock

Exchange and other principal ex¬
changes, announced that Alfred L.
Nimmo

has

become

associated

with the firm in
charge of the
municipal bond department in the
New York office, 52 Wall Street.

Mr.

Nimmo

formerly
Company.

was

E. F. Hutton &

with

$3.67

Williston, Bruce Adds
MIAMI

Klinger is

BEACH,
now

Fla.

2.72

affiliated

R.

Williston, Bruce
Seventy-first Street.

&

with

Co.,

Feb.

Companies which write

L. L. Lewis

as

I

on

before
Oper¬

18,

1953.

have not shown
fire

company.

as

favorable

a

an

1.12

$5.03

large amount

of

,,

$3.87

casualty insurance

operating experience

While casualty operations

from the

as

the above

improved considerably

unsatisfactory experience of 1951, there were still
many
companies which reported statutory
underwriting losses last year.
Over the coming weeks
many of the other insurance com¬
panies will be publishing their annual
operating statements. On
the basis of present indications
we would expect that all
compa¬
nies, both fire and casualty, will be able to
report some improve¬

J.

result of the better rate
structure

Of

the

as

a

prevailing throughout the past

year.

631

•

course

overall

there will be exceptions

results

and

the

general

to

the

above

experience

are

pattern but
expected

to

reflect the trends in evidence in
the reports published so far.

Opens

Lawrence L. Lewis is conduct¬

ing

securities business from of¬

a

fices

at

270

Park

Avenue,

New

York City.

NATIONAL BANK

John W.
John

W.

Lord, Inc., Formed
Lord,

Inc.

has

way, New York
in the securities

City,

to

engage

business.

to

Government

and

in

INSURANCE

Office:

26, Bishopsgate,
London, E. C. 2

Branches

in

Pakistan, Ceylon,
Kenya, Tanganyika,

land

Paid-up
Reserve

and

Somali-

Protectorate.

Capital.—_£4,562,500

Capital—
Fund

and

£2,281,250
£3,675,000

The Bank conducts every

banking

STOCKS

India,

Burma, Aden,
Uganda, Zanzibar,
Authorised

Charles Silver Opens

the

Kenya Colony and Uganda
Head

been

formed with offices at 150 Broad¬

BANK

of INDIA. LIMITED
Bankers

was

Banks,

Pa.,

Adjusted Earnings Per Share

$4.99

1.58

higher margin than those concentrated in the
casualty field

Jack

—

Street.

Conference

$2.27

in statutory
underwriting experience. Institutions writing
predominantly fire lines should show a lower loss ratio and a

Philadelphia,

Annual

2.03

ment

ations, Audit and Control of the National
Association
of
Mutual
Savings

Fifth

1.21

$6.61

YONKERS, N. Y.—Charles D.
Silver is engaging in the securities
business from offices at 65 Clark

the

1951

$0.24

Res.

be

any

personal

is

$2.46

Equity in increase in Unearned Premium

Nimmo Heads Dept. in
N.Y. of Auchincloss Go.

that

pattern is that
need dJot more income before
do

result

1952

1

(Special to The Financial Chronicle)

wc

in accord¬

following

can

can

—

$737,497*"

$1,527,436
to

by using past

borrowing

or

accelerated.

54.06%

10,406,524

$984,376
1,177,080

Operating Earnings

ing for the increase in the

12,359,628

51.85%

11,163,383

.

Income Tax

Translating the above figures

patterns of saving

1951

42.23%

Incurred

Operating Earnings before

Net

"

13,078,071

_

Investment Income..

Federal

oper¬

$25,225,830 $22,863,345

.

a

the

further

$26,437,607 $24,888,759
1,211,777
2,025,414

Statutory Underwriting Profit
Net

have

a

Company. A summary of the

Ratio to Premiums Written.

less.
I

continu¬

a

as

company for the past two years is shown below.

Premiums Earned
Losses and Loss Expenses
Incurred...
Ratio to Premiums Earned

prove

a

developed a
pattern
of
saving

been

our

save

He has

high

ber, finally, that in a country with
a
high standard of living, there
is a large margin between income

we

despite rising

we

50 Years With Firm

Field &

in

may

shall

I

pattern of saving since 1947. The

NEW

than

of this

Net Premiums WrittenIncrease in Unearned Premium Reserve

accurate, it seems to me
quite possible that personal sav¬
ings in 1953 might exceed those
of last year by
perhaps a billion
dollars. My guess would be more
Now

well

1953

we

year.

should

of The Hanover Fire
Insurance

ating record

our

comes.

affiliated with L. A. Huey

Company, 325 Aquila Court.

sociation

at

the

as

equity holdings, showed

One of the better

fairly

not pursue here.

less

Ingram

must

to

then

and

savings.

complicated

during which

Chronicle)

I

and

glibly

reconversion

The

income.

of

custom

The

ULM,

of

parenthetically that I be¬

After

now

out

dollar

Government

Minnesota Street.

-

of

on

showings among companies which write a
large amount of straight fire insurance is the
operating statement

cents.

identified with it since

Bond &

most

casualty lines.
larger volume of funds

Although taxes absorbed part of the gain in
operating income,
were generally above the
previous year.
>.
;

the

that

guess

a

sav¬

confess

Blien is

discuss

readjustment"

have had

principal
in the firm since its
inception in
1930; Mr. Weinshank has been

to

to

judgment

rather

both the fire and

final earnings

some

•.

Exchange.

Riese has

(Special

heard

average

economists

rate

increase.

course/ figure, I should warn you not to
individuals take it too seriously. Remember,
who save and others who spend it is based on an
assumption as to
beyond their income. I am speak¬ the
general
level
of
economic
ing now of net saving of our en¬ activity. Remember, too, that we

Street, members of the San Fran¬

NEW

the

likely to continue

for

on

ing high level of dividends

we

level

a

substantial

better showing in the

a

better yield on fixed income securities

a

Of

always

Charles

Slocumb & Co. Inc., 1

Mr.

at

Most

seem

most

made

automobile lines

after

new

and

cisco Stock

have

"seething

savings

directors, August ing—a word that is as rough as
Weinshank, the condition it is used to de¬
Jr., is announced by the invest¬ scribe. Out of each dollar of in¬
ment
banking
firm
of
Brush, come beyond this level, however,
F.

above

year.

problem

levels

just about in line with

has

income

running

5%

I

this

saving. In the period 1929 to
1941, we did no net personal sav¬
ing when our personal income

Add Two New Dirs.
tion of two

1950

that

words, the
followed by

of

Brush, Slocumb & Co.
SAN

was

in

postwar

there

business from offices at 208 South
La

other

In retrospect it ap¬
for calendar years as

saved

now

last

are

out

whole the amount that individ¬

a

much

expect to receive—after taxes.

for

the past two
years,

over

the

of

some

final six

do

judg¬

some

are

quarterly to

sprees.

that

pears

In

wash

to

from

sprees were

that

(Special to The Financial Chronicle)

is

data.

saving

the

CHICAGO,
son

Bopp

saving published

seem

move

spending

1951,

Harry J, Wilson Go.
„

personal

aberrations

when

would

we

with

We

It is less well known that these

uals

Formed in

R.

quarterly estimates

Ex¬

associated

&

Karl

by the Department of Commerce.

(Special to The Financial Chronicle)

begin
to how

perhaps

the

estimate

may

as

in

charts of

:

bers

clearly

sawteeth

CHICAGO, 111. — Alger Perrill
and Rodney N. Perrill, both mem¬

some

therefore, I think

These

spurts

on

months of 1952. An improvement in the
statutory under¬
writing profit shown by most groups was the reflection of a
better

and

saving for this year,

Saving s."

up

Alger & Rodney Perrill
:
Join Harris, Upham

trying to form

personal

Experience

Investment results, with the aid of

Savings in 1953

"The

proportions.

including liability and property damage,

wave.

assigned

me:

annual

Of course, underwriting conditions
varied consid¬
erably among the different companies
depending upon the lines
emphasized. Straight fire business continued to be
quite profit¬
able in spite of the fact that fire
losses in the United States reached

topic that has

at

out

1951, despite the
And, according to

waves.

Insurance Stocks

—

of

ating earnings.

record

ap-

try to

be¬

saving

additional dollar.

preliminary

praise

once

50%

again

number

reports of fire and casualty
now been issued to
give a fairly good£
indication of the
operating results achieved by the industry in 1952.
From the statements
published so far it appears that the year
just ended was a generally
satisfactory period for insurance com¬
panies. Most institutions were able to show
some gain in oper¬

income—

were

are

what

CINCINNATI, Ohio—The Cin¬
cinnati
Municipal Bond Dealers
Group Annual Party will be held

:

year

it

buying

covering when

Outing

level

At any rate that's what

in

slithery

ground

last

yond
each

illustrations

is

and

this

something

1951, jare

of the

reach

we

sufficient

insurance companies have

year.

prepared this discussion that

two dramatic

institutions.

This Week
A

need

munity, the soundness of our
banks, then I believe a moderate
rat$ of interest will in the months
ahead attract the greatest volume
of new
savings our institutions

we

H. E. JOHNSON

a recon¬

saved

relatively
incomes, Mr.Bopp contends we now
$140-$150 billion of disposable personal income before
there can be any net
savings, due to war-generated inflation.
Predicts personal savings in 1953 will increase
about $1 billion

con¬

savers,
the
care
of them¬

needs

By

developed

pattern of saving, during which
less and less despite rising

keep uppermost in

the

nation

war

version

new

take

we

minds

our

Maintaining following the last

peo¬

we

Bank and Insurance Stocks

Vice-President, Federal*ReserverBankv Philadelphia

people,

younger
rather than in dollars. If

stantly

Savings

By KARL R. BOPP*

we

spent nothing on promotion.
In the months
ahead, let's think

ple,

33

But, don't

-

this problem

going

years

like.

exchange

description of
business.

Trusteeships and Executorships
also undertaken

Laird, Bissell & Meeds
Members

New

Members

American

120

York

Stock
Stock

Exchange
Exchange

BROADWAY, NEW YORK

5, N. Y.

Telephone: BArclay 7-3500
Bell

Teletype—NY 1-1248-49

(L. A. Gibbs.

Manager Trading Dept.)

Specialists in Bank Stocks

The Commercial and Financial Chronicle
34

by

stock.
if

%

News About Banks
NEW

BRANCHES
OFFICERS.

Bankers

and

ETC.

became

Texas,

of Atlanta,

Federal Reserve Banks

as

Committee

March

beginning

the

for

main

member of the

alternate member to
serve
on
the Committee in the
absence of Mr. Johns. Mr. Gilbert

las,

an

as

has heretofore served

1951.

and

1948,

of

Feb.

Reserve

Federal

Committee
members of
of the

continously

announced

New York,

.

the

G.

J?

-

appointed

was

Secretary.

"

'

Assistant Vice-President.

was

servec[

mmm National Bank

■ field

the

by

announced

was

of

Bank

Feb.

on

19,

Manhattan

the

from

Bank.

shares

issue

expired

stock-

to

River,

land's
tionale

J.

of Toms

$700,000

from

by

'

:

reporting

we

Hpnri

...

capital

a

Fales

DeCoursev

cated by the Office of the Comptrailer of the Currency, increased

w

nnrTnnnLl thl

of New York announces the ow
elec-

tion

of

'

James

M.

Nicely

trustee of the bank. Mr.

Vice-President" of

Feb. -13

Nicely is
First

the

a

as

by

-

York.

of

•

,

Approval

stock

New
*\""7

-

by the New jxork

Department to

a

V.

'•

A

^

in this

shares-of

100,000

-

,

7

*

'

.

of

7

^

*

.

-

•

'

#

With Rex Merrick

;

cv.

Fifgt ..National

Thc

Bank,

of

Jah. 22,
creased
of

a

Rome, Ga., reports a capital,-ef-

from

$567,000,

stock dividend

a

as

of

a

.

of

$100,000 of

f

j

new

]" *"

:

result

$32,500.

Avenue.

With Chas* A. Day Co.;

stock, f:

An

the Tradesmen's National Bank of

Ala., from $1,000,000 to

New

the

to

Haven, Conn., from $350,000

$385,000, has been made possi-

ble

as a

of

$35,000,

having
Jan.

lesult of

the

been

a

LEWISTON, Maine

capital, according to

of

the

#

*

Day &

Worth, Texas, has been increased

-

«

*

*

Uifiord A.

c

1

r»

4.

Spoerl, .President of

the First National Bank of Jersey




National
* a

.

^

*

ruin

nnn

Bank
+

enn

of

"7:^7

au

$4,000,000 toin$5,500,000; the,
accrued
part through;

stock dividend of

$500,000 and

;

-

effect

of these could have an. ad verse

_

t

^

-7 }■ /7

upon

the money mar-

•

they were not handled properly, many, followers of Treas- 7
ury obligations, do not expect as drastic changes in policy as was ■**
looked for at one time.
1 ;
■
'
•
7 '
.

.

3%% long-term bonds

kets if
-

has

Mass.—May

,

joined

the

staff

Joins McGhee & Co.

Strick & Co. Formed
V.

of

Louis
&

with offices at 54
Street, New York City to
in a secunt.es business.

With Sills, Fairman
CHICAGO, 111.

—

Joins R. S. Hays
.

man

La

& Harris? Inc> 209 South

Salle

Street, members of the

Midwest Stock Exchange.

■ -

(Special to The Financial Chronicle)

Arthur G.

Hageman is now with Sills, Fair-

(special to the financial chronicle)

has formed Strick

Strick

CLEVELAND, Ohio—Harold J.

Company

Pine

(Special to The Financial Chronicle)

Fort

increase
a

, ^

*

Currency.
a

;

Because there are so many things which must be taken into 1
consideration as far as the debt management is concerned; and 7^7

,

engage

First

a

SPRINGFIELD,

As of Feb. 5 the capital of the

27, according to the weekly

rvu

Higher Rate Policy Unlikely* 7 v 7

""yielding marketable obligation. '
*

Estabrook & Co:, 1387 Main St

bulletin of the Comptroller of the

'

7

ifi- l7

^such savings bonds, hold them when, they could take on a higher / * 7

(Special to THe Financial Chhonicle)

Currency, having become Foster

on

,

777

Joins Estabrook Staff

a

effective Jan. 27.

capital

effective

made

new

:

Rene A.

—

Go.j Inc. of Boston.

$1,500,000,j

recent Bulletin of the Comptroller?

stock dividend

enlarged

■

zr-

institutional investors. This ;
would be a political "hot potato" if the large investors were to get
more-favorable.treatment than the small investors, who have all - the votes. The Republicans arejust a^ vote conscious as the Demo- 7 :1
crats ,were.
Also would owners of the- 3% demand. obUgaUons,; ';,^ ,;

some

in* ihe capital of; the First Bank of Montgomery,!

increase

jj

which would go mainly to the large

(Special to The Financial Chi:onioA.)

*

A stock dividend of $500,000 has-

J served to increase the capital of! Bernier is with Chas. A.
r

7 7

Treasury is going to put out .3% %,- 3^%, or

(

„

nf

creased

capital ot $600,000 in^

the

_

•

^pecial t0 THP FlNANCIAt Chronicle) .V-

•

p^^/i7^krtv>'la7a"k °7ecWve Feb':n- ol $250,000, in- Re^Merrki,^ Second
Pougrhkeepsie, N. Y., fepoi
of
from $150,000 by the-sale
vS, as

occupy

W./Randolph Burgess- the- Treasury's top .debt management
official, commenting; on the savings b,Ond program which .is under pf t
study, indicates the new Administratiqh plans no changes in,the 1
series "E" and- "H" savings bonds. These obligations, particularly ^
the series "E" bonds, are held by snail investors mainly and give 7" "
a yield
of 3%. If there is not going to be a change in the rate >/
of return on the ^E" and "H" saving^ bonds it is unlikely that the

1

J77#

stock

"

and credit policy continue to

?

.

'

management

one

\ 7

r

*

$10,000.' ;

,

it likewise gives them a satisfactory income.

by the Treasury will not be as radical as some have been
clined'to take for granted.1
7-" J. 77-7-

-

dividend

as

used

7-- "W

7

effective Jan. 26, through a

considered attrac- ?

generally keeps short. This is the policy that is dorai7,;?-7.
nating the government market at the present time. Nonethe!essV"»^77 I
there is a very strong opinion around that the program that wrlijjpe
doubt,

■

!

result they are

until there are further developments as to
what is likely to take place, the money market will probably continue to adopt a conservative attitude. This adds fire to the flames
as
far as the near-obligations I are concerned - because, whenfin

-;/v —7—:

-7-

a

These purchases of the

obligation

Debt

bank's

--£***» Dkla., has been^brmight about r GREENSBORO, N. C.—Burwell
a
r
°£ :*?.a J. Shore, Jr. has become affiliated
The
First
National
Bank, of.
fC'*• .having with McDaniel, Lewis & Co., JefGlen Head, N. Y:/has raised its
2}eJ5
become .^90,000^on Jan. ferson Building.7 »# ; wL**. .
capital from $160,000 to $170,000/ 27> compared with $500,000 pre-

eaph.

as

center ©f the stage, and

of .$100,000 in the 7
' 7. t
. 7 -J
Fidelity- National j73/Vffcll MCl/aiHeiJLCWIS -7,
{ i."i(Special to The Financial Chronicle)
'7'
»ank: & Trust Co.! of Oklahoma

stock,:par. $50

7.'

'

require¬
absorbing a fairly

important to them as it is to the deposit banks.

$4,- 7 sAn" increasei
500,000 to' $5,000,000 consisting' of capitaL. of the
Company of New York from

-

•-

Maturity spacing is not disturbed too much by these purchases of ■»
the new 2y>% bond even though maturity distribution is not as >

stock will be $3,000,000, divided
into 300,000 shares :—» with par
value $10 each.; Head office will

an

stock

other

"Tiiree of the provisional di-

increase inthe capir ; ;r;
c ; :
be in Montreal."
7
of
the
Empire. Trust V,7a,;. A-.7

hiding for

been

F.
of

*

2y2S of 12/15/58 have not
confined to the commercial banks because there have been
financial institutions that have been making commitments
them.

tive to

appeared as wit-

from.- Holland. .. The

this issue;

sizable amount of these bonds at levels that are

of

WA-'Micli.,.a'Stote member bank of the be

T

of these banks and

ments

Monuette

the rectors of the Mercantile Bank
of Detroit, will be Canadians and two will

Bank

Common wealth

will

1958 fits into the income and maturity

The 2V2% of

Vancouver ' and hopes to
of spread' to other Canadian cities
if it meets with success.
•

•..

title

in- the

change

as

influence upon the current buyers of

will begin opeartions in Montreal

on Jan. 20 Federal Reserve System^ has been
State Banking made, as of Feb. 2, to the Bank
certificate pro-/
the Commonwealth. *~
7

given

was

dividend

-

'7*' ~

7" *'

*

tal

City

4

•

A

the

a

$600,000.

Na¬

...

Bank of

tional

it

effective and

jhe amount from $200,000

.

well as the 2lk of 1959/62,'
Despite the belief that
be used in future refunding

bond,

new

the 2%s of 1958.

maturities

intermediate-term

Eank of Moline, 111., it is indi- nesses at the Committee meeting.
"Mr. Moquette said the bank

of

President

National Canadian banks,

Moline

the

$800,000,

the

lesser extent

a

a

operations, and this might even result in a reopening of the 2l/z%'
bond due on Dec. 15, 1958, this does not have too much of ; an

also quote:

Frnest

in Holland, and C.
Inspector - General

ing bank
Elderkin,

of

'

*

in the 2V2S of 1958,
and to

by certain
fairly solid interest

of the need of somewhat higher income

commercial banks there has been and still is

to

Moqueue,

'

7. '

Now

Because

Managing-Director of the sponsor¬

*

*

«

AT

2V2S of 1958 in Demand

Canadian Press

banking group — the.NaHandelsbank of Amster-

«Rnfh

mainly to fill in maturity schedules.

been

Ottawa

accounts

Press

to

they consider the uncertainties that surround the longestbe important enough to keep them away from the

that these

is said, has

National Bank

higher yielding obligations.

in

return securities except in minor amounts. The buying
banks are doing in the longest eligible obligation has

highest

given third reading to
has the bill, which has already passed
increase the capital of the Senate. From the .Canadian

N.

put to work

be sure,

because

The House of Commons,

dam.

be

must

the largest return would be obtained by making
investments in the longest-term government securities. However,
this is not what these institutions are inclined to do at this time,
To

these advices the
is sponsored by the Nether-

bill

became

to

Many commercial banks cannot get along with,
obligations, and there¬

obligations.
funds

fore

of Canada was ap-

from

According

$725,000 as of Jan. 30.

Corporation and

The First Boston

term

the income that is obtained in the near-term

appearing
the Toronto "Globe and Mail."

in

*

*

likely to continue that way for a while) there is nonetheless a
fairly good sized interest appearing now and then for the medium-

dividend of $25,000

to

the First

Feb. 17.

on

underwritten

was

served

The subscrip-

Jan. 30.

on

tion warrants
The

offered

stock

of

holders

He

'

"

'

A stock

were

according

12,

advices

' - - Pitffsfield,

of

1946 until he

*

received for more
92% of the additional 250,000

than

&

he

the

Although the government market is still very much on

liquidity preference side, which means that the principal commit¬
ments are still being made in short-term issues (and it is quite

term issues to

incorporate the Mer-

cantile Bank

associated with the First National

Company of New York, that sub¬

scriptions

•

Buying Dictated by Income Need

proved by the Banking Committee
0f the House of Commons on Feb.

of the Pitts-

President

as

bill to

A

con-

was

Co. of New York, where

jrust

Mass.
It

he

1946

to

nectecj with the Chemical Bank

Assistant

an

in

Bank

1929

prom

£>ecie-

Assistant

ullard,

was

ton

buying into these issues.

*

m

*

President, and was appointed Executive
Vice-President in
1951.

.....

.

appointed an Assistant
Vice-President; Sherrill P. Newfary

as

been

symptoms of "sold out" securities. There appears to be less bearishness in these bonds, but as yet this has not brought any new

Geenty and R. R. Mitchell,

the First
1949 as Vice-

joined

Nickerson

National

Feb. 18,

on

.

following appointments. Wi

liam

__

Mr.

Board,

Trust

was

He has been President since 1949.
iPir-ct

chairmnn
email man

of The New York
Company at 100 Broadway,

the

of

Mnc^ip

lviassie,

Choate, an Assistant Vice-President, is Manager of the new

appointed Assistant branch. Mr. Choate has been with
Cashier, in 1925 Vice-President, the U. S. National since 1919.
and in 1944, First Vice-President. Assistant
Managers are R. C.
1922 he

*

*

*

M
ivi.

Adrian

would be established in the Holly-

Nickerson had

1906 and has served
since that date. In

July 23,

on

banks.

.

unit

banking

a

effective wood district. Construction of a
March 30.
Mr. Spoerl originally modern
new building will be
became associated with the bank started within a short time. W. P.

System and five

Reserve

that

nounced

S.

President,

elected

been

The

1953.

28,

representatives of the Federal Reserve

lows have

scarcely a week after
President E. C. Sammons had an-

that

Kingsbury

K. S. Nickerson

Governors

of

little change

new

quarters

nounced

the seven

Board

the

new

Chairman, an-

Open Market

consists of

The

longest-term government bonds have shown
far as the type of buyers are concerned, and
made, they continue to show many of the

the

Although
very

opened for business in temporary

Atlanta,

Federal

Kelley

ing,

one

Graham,

the

ending

year

sections.

1, 1942,
1945,
Malcolm Bryan,

is serving as a
member of the Committee for the
of

Bank

in

side

eastbranch

Portland's

of

cock

meet¬

same

Federal

March

President

Di¬

rectors. At the

for the years

ber of the Committee

beginning

of

Board

mem¬

a

as

Ore., opened
its 41st branch on Feb. 16 with
the
establishment of the Holly¬
wood branch at 3925 N. E. Han¬
Portland,

of

yield that is available in the new 21//2%
obligations is bringing buyers into

other middle-term

these securities.

National

States

United

The

Bank

a

as

and

The

maturities.

bond

will,

however, re¬

President of
the Federal Reserve Bank of Dal¬

elected R. R. Gilbert,

in

term
*

❖

*

-

fanning out in some of the buying which has been going
Treasury securities, with certain deposit banks and other
financial institutions paying more attention to the intermediatemodest

on

to $3,000,000.

Mar.

on

He

30.

have

and

1,

ident

year

•

go

and, with corporations competing with the banks and other
financial institutions for these securities, the tone and market
action should continue favorable.
There has been, however, a

made possible through a
^
stock dividend of that amount,
he
plans
to the capital as of Jan. 22 thereby
retire as Pres- being
increased from $2,000,000

member of the Federal Open

a

.

short and be on the liquid side. This means that the
Treasury issues are in just as good demand as they have

there is uncertainty around,

been

that

the bank,

shore,

near-term

been

of

Directors

have elected
Delos C. Johns, President of the
Federal Reserve Bank of St. Louis,
Dallas, and St. Louis

Market

to

#

$1,000,000 to the

An addition of

securities continues to follow the
namely, keep close

The demand for government

capital of the First National Bank
of Nevada, at Reno, Nev., has

City announced on Feb. 18 at the
regular meeting of the Board of

Directors of the

of

Governments

on

By JOHN T. CHIPPENDALE, JR.

usual line when

&

#

Boards

Reporter

San

of

dividend of $250,000.

CAPITALIZATIONS

The

Our

capital of the

Bank

National

$2,000,000, having been increased from
$1,750,000 as a result of a stock

CONSOLIDATIONS
NEW

if

As of Jan; 26 the
Alamo

Antonio,

REVISED

of

the sale of $1,000,000

also
new

<

Thursday, February 26, 1953

...

(913)

DURHAM,

t

N.

^

C.

William H.
affiliated

Branson, Jr. has become

with R. S. Hays & Company,
Ill

Corcoran Street.

Barnett

is

Company;
,

now

2587

with

McGhee

&

East 55th street.

Donald C. Sloan Adds

'•

(Special to The Financial Chonicle)
PORTLAND

Ore

PORTLAND, Ore.

Orie

S

Orie b.

Inc.; Johnson is now with Donald
Sloan & Co., Cascade Building.

C.

■

.

:

Volume 177

Number 5198

.

The Commercial and Financial Chronicle

.

.

(919)
Continued

from

3

page

The
In

High

seven

Level

of

Taxes

and

from fiscal 1946

years,

to

1952, our government collected
$308 billion in taxes, and, from

Getting Back to Soun*

1789

through June, 1945, including
both world wars and 150
yegrs of
operations, ..Uncle Sam collected
$254 billion, or 20% less than we

Economic Fundamentals

;»11

•(

■

have spent on our plans in seven
early 30's. That theory
years.
That has of course pro¬
as you might
think.
In fact, you can pull it duced a lot of G. N. P. for the
planners and a lot of GIP for the
They must be paid for.
Some¬ apart, and actually it is not a
rest of us, because the cost of this
These
enthusiastic
thing for nothing is a mirage, and plan at all.
if these developments are assets economists saw that extravagant forced activity to both consumers

ards'&re real advances

and

sion of the

new

is not

assets1, but they have also created
obligations and responsibilities.

advances

and

to pay

Businessmen

do

not

ernment interference.

like

ulations.

terprise

Gov¬

They don't
or

free

and

The key to

reg¬

They believe in free
markets.

en¬

plan is

to

discount

disregard

or

thing merely because

ment

some¬

like it.

Purchasing
controls

do not like
they do not

agents

either,

but

without

interference
is

about

in

time

Government

understood the

we

being used and its ef¬
fects, instead of saying, "the Hell

apparatus

We

planning,

we

Stalin's

a

.not.

an

have

collected

by

were

in

fiscal

ory,

the

G.

N.

P.

for

from

figures,

you

completely is nothing to cheer about.

were

advance.

with

the

Now,

results

On

we

of

all

and

basis,

which is the

come,

dim the outlook

may

that

after

me,

per

GiN.P.

is

an

attempt

gross national

to

spending,

sentative

do not

can

G.

suppliers, but today's
purchasing
executive
goes
be¬
yond price in the search for value.

ity

that

esses

ment

will meet the

adequately, he

and

demand
to

economic

at

in

That

whether

us

like

we

it

or

rates

Categories of Spending
course,

spending

in three statistical
sound purchas¬
by
importance

falls

into

are

increasing;

is

not.

for

was

•

These

have

been

called

astating statistics, and, if
one

dev¬

you

are

of those whose income has not
as

fast

as

prices

and

taxes—and I believe the majority
are in that
class—-you know they

will

say

we

•

'

be

can

better

no

than.-'

supply and de¬
movements

on

the

price

conditions which

move

them

returning to fundamental im-

A

is

management

not

The

t

advantage ,pf
successful management is in, the.,
analysis of conditions so that it j
gets wise sooner, and has the !
courage to act.
That is particu- \
larly true with purchasing, material control and inventory policies j
—the
industrial
logistics which
big

-

,

well be the key to successful
operations in the next few years.

fundamentals, and they are catch¬
ing up with us. We have simply

are devastating.
Your prosperity
Spending
their influence on
has been plundered by
inflation,
consumers, spending by busi¬
ing policies.
ness
and industry, and spending and so have business profits. Busi¬
The Bureau of Economic Re- by government.
ness
profits were lower in 1952
than in any year "since 1946. Pro¬
search spent years studying sta¬
There is where our economic
tistics and cycles
to determine wizards use an
gressive
taxes
had
actually
apparatus that few
reached the point where increased
which activities.' most correctly
understand. We know that spend¬
forecast business changes.
Those
production and sales lowered the
ing by consumers, business and
net
measurements are now mixed and
income.
You
know
lots of
industry varies up or down with
good companies in that boat in
maladjustments
are
developing. economic
activity, over the scale
1952.
But, if you will look at charts from boom to bust. In
fact, the
Do not confuse per capita per¬
showing trends of production and spending is determined
by the rate
r
sonal
income and over-all per¬
prices, you-will find very consid¬ of
activity, or, at least, it always
sonal
income.
erable recessions since 1945. But,
Retail sales
and
was.

been

Purchas-

management.

and

element.

going

are

has

doubt, have major atten-"

Successful

Actually,
forget and ignore the

tried to

we

:

profit

necessarily wiser than its com¬
petitors. Timing is the essential

your

fundamentals.

to

which," at*

levels

portance.

Getting Back to Fundamentals
Some

peak

Information

goods.

back

thai*;

all-time high.

mand

ing power in interest and higher
purchasing power in exchange for

1945,

at

Decisions

money; it will have greater earn¬

in

prove?'"1

the information they are based on.

simply
for

statistics*

job to stoke
the materials

ing will be in the spotlight and,
in some cases, may be on the spot.

are

more

the

our

inflated

no

and

will get

is

tion from

$60 billion this year.
That financial policy will also

prices;

around

have high activ¬

we

all

It

will

so,

must borrow

you

course,

an

mUst pay higher rates because he

stated,

^

we

put on the books in recent years
by increased inventory values'; 4
Meaning that, under current and ,r
near-term conditions, purchasing' >
and inventory policies are going"
to
have
major importance and

in¬

price

markets;

our

and

squirting L

regulations

Considerable

plan; for, it is being forced

a

taxes,

that

prices, puts work-"
ing capital invested in inventories1'

relations

replace political

fluences

and

and

these

being told that supply

are

of you

and that is admitted by our Coun¬

$

.

change the arithmetic.

tories

negoti¬

slightly

is

i

<w

activity with
and'-:
supplies needed to keep the plants?''
operating. That keeps our invent '<

ate for the best value
among rep¬
resentative suppliers.

We

P.

that.

require¬

can

raise

learned

N.

Of

cil of Economic Advisors.

multiplied

\ni/2L

in¬

and

money

have

est

.

.

meaning of competi¬ high farm prices do affect the cost
}<
negotiation.
They are of living. We have learned that n;
slogans—they are the work¬ social objectives and Welfare cost

influence

capita

average

taxes,

lower in 1952 than it

measure

Of

of

out

1952,

year

,

the

And, if it is any consolation to
a
champion, you are it, for Husky supplies have even reduced
the sacred farm prices and inter¬
Sam collected
50%
more

taxes,

v

We have also learned again that

to

only secure a fair price
through the competition of repre¬

not

cannot be

increasing costs

and

You

are

wages

prices, unless productivity is 'ji

increased,

be

un¬

highbrows tell us a theory
policy must be implemented,

.

real

such

and G.N.P..is the tool of that the¬

alley.
Jf the purge on the Potomac is to
i reach
the planners and policies in
addition to political personalities,
: we may look for changes that may
much

and

*

buyers will

again that

increased without

Uncle

bit.

or

:head—it is right down your

have

proven

ing tools of purchasing.

on

The

demand and prices. This is
something that is over your

ply,

taxes

Government

possible any more will find little economic progress.
believed
Fourteen per cent in seven years
Hitler's
or

three, and it

.major purpose is to influence sup•

believe

in

live

must

its

because

30,

Federal

was

that

outlined

Purchasing agents, particularly,
must understand
what is called
economic

not

plan

than

have been influencing our

.operations for many years.
>

did

moral

with the New Deal and Fair Deal"

iwhich

tion
not

s

older

relearn

been

the
the State of New York, than he value of the dollar is strengthen¬
gardless
of
where
the
from
the entire country in ing.
The new Administration is
money did
comes
'
■
from, or what it goes for. 1941.
pledged to dump the spending
Of course, G. N. P. is breaking plan theory.
Harry Hopkins frankly told us
That, too, is being
the
plan was to tax and tax- records in dollars, our 52c dollars, forced upon us whether we like
spend and spend—elect and elect. but if you will take the inflation it or not; for, even Uncle Sam

markets, so it

our

and

The theory makes spending the
measure of economic
activity, re¬

diffi¬

much

too

have

do

problems

our

us
to
analyze
political
plans in the economic field.

rode out
the regulations and even the steel
We

of

some

permit

ficient purchasing agents
strike

June

our

N.

ravel

ignore them. In fact, officials in
Washington have said they found
that companies blessed with ef¬

culty.

last

the magic economic
statistical measure¬

new

of

G.

or

do not

you

a

$14 billion higher than the pre¬
gross
national product,
vious year which had been an allP„ and it is now fairly
time high.
That $14 billion in¬
commonly used by all progressive
crease,
alone,
was
practically
economists,
double the total collected in 1941,
An explanation of G. N.
P., the which was the last full peacetime
gross national product, may un¬
year.

But,

the greatest mistake one can make
is

may

competition.'
The

have

business, with some excep¬ If he fully understands the need,
spending in wartime brings' full
the end use value of the product
employment and prosperity; so, tions, has reached the point of
bought, and keeps informed on
they adopted that formula for diminishing returns.
In fiscal year 1952, which ended the costs of products and proc¬
peacetime.

their cost.

like Government controls

complicated

and

They

government regulations
have to be weaned on

on

and

must be willing

we

as

demand.

raised

35

may

,

groups:

Hear! Hear!

-

-

■

*>■.)'

:

>

"Typical of the new revenue powers requested^1
by the city is the power to levy taxes on transfer^ of !' *
securities. These taxes would be superimposed on; >
the transfer taxes already levied by the Federaln■>» ~
Government and the State of New York.
"Much

such

"

dollar

account for 55% of the business transacted
New York Stock
.'

guaranteed

by

increased

inven¬

tory values, and companies blessed
efficient purchasing depart¬

with

thescore

know

ments

will

have

and

real advantage.

a

Prediction of "Peaks"

and "Dips"

Many businessmen
under

influence

the

theorists who

and

have
of

use

fallen

theories

the micro¬

relay technique to bounce
peak to peak
so they fnight skip any dips which
migfyt dim the picture. Peak de¬
fense spending,
peak industrial
construction, peak home building,
wave

business trends from

incomes,

personal
and
our

gross

boom

employment,

fine

print,

they tell

of those factors may

one

but

us

any

decline,

sustaining forces ahead. The major
listed

are

a

reduction

of

taxes, and those calling for addi¬
tional

Government

roads,

institutions,

spending

aid,

for

arma¬

ments, etc., to take up any slack.
I
way

hardly follow that twostretch for it leaves us in the

can

hands of

the planners

that have nut
leaves

us

peak

us

where

onerating

on

and

plans

we are.

It

the theory

activity, duction have been increased much
and, of course, G. N. P. is high in faster; so that, if strikes and aid
such periods for high economic
programs were not limiting the
activity naturally develops active supplies available in our markets
spending by consumers, business for consumers, everything would
and industry.
be running out of our ears in spite
'
SO,

the

planners

simply re¬
versed normal! cause and effect,
on
the plausible theory
that, if
speeding lis Jil'^h, economic activ¬
ity,
wages,,
employment,! fatm
prices ate bound to be high. Gross
national

spending

was

made the

of the defense program.

"In

on

are

Committee

"

This
program
has
actually
reached the point where some la¬
bor union economists want taxes

included in the cost-of-living hi¬
Whenever ^private spending de* because they have curtailedv
is too low to power their economic labor's purchasing
power. r' For^!
merry-go-round, which they call tunately, the Bureau of Labor Sta¬

of

G.

N.

P.—is

used

' *

to
.

keep the

tistics has

refused to

do

so..

defense

additional

.

sumers.

were-

just

as

Some

'

younger

move

move

a

•

''

;' :

■

v.

city tax, if it did not cause the

bodily to another state (and this
to stock

s „t,

? * <!

many

,Iv' %

exchanges already exist-

j

upon

^ 'f

state reve-

the damage to brokerage houses and the loss

to ;the

security exchanges,

transfer taxes

ca¬

Our
politicians grabbed
that
pacity is either in place or soon
theory
with
great
enthusiasm.
will be and, having made that ex¬
They may not understand the eco¬
nomic algebra, but the idea they pansion, I think it is logical to
say it will support both the de¬
could buy votes and prosperity
by
fense program and a near-boom
simply increasing the budget and
civilian production.
opening the spending spigots was
We have also built inventories
a
politician's dream come true.
to
near-record
proportions and
In fact, they got so careless in the
government stockpiles for emer¬
process that we must now check
gency needs, so, it is hard to lo¬
the penitentiaries to
locate our
cate any shortage now facing con¬
tax
collectors, and some other

things that happened

nues,

adding a $50 bil¬
production capacity

That

fiscal experts to

"Apart from the adverse effect

.

production.

,

.

to the facilities for normal civilian
(

r

!'.>•'*

theA..^.
the Miayor'sJ
^

unlikely), would at least tend to make

transactions

.

proposal to authorize

ing in Chicago and other parts of the country/

We have been

lion

own

/v

,M,

stock transfer tax,.

a

.

Exchange to

and,

r

Management Survey should be noted.

on

'The addition of

seems

,

the New York exchanges

the

City to levy

It states:

not too prosperous even

before taxes.

key to permanent boom conditions

an

with

connection

report by the city's

many things are; and many com¬

panies

%

competition with the exchanges
City of New York.

New York

As it is,

buyers
have
sad, and probably as dishonest never had much
imported bv President Roosevelt
experience with
to relieve the breadline depres¬ economically and financially.
the regulation of Prices by supply




in the

economic

Then, in wheels turning.

probably will not, and list the

ones

of

expanding economy, govern¬
national product relay ment spending—the third element

into 1953, or '54 or '55,

according to that theory.
the

sult

;

in active

are

r

the

security exchanges located
grown rapidly. They list many

of the securities traded
and

.«>

•

years,

in other states have

But, high farm prices are very desir¬ population increase, or offset it,
rough able, for they are the natural re¬ both production capacity and pro¬

on

/

Exchange.

"During recent

ment has better information.

be

t

These nonresident customers-

outside of the state.

activity figures show

So, the boys dreamed up a plan increases because over-all con¬
lines, apple selling depressions, as
to harness and control that situa¬
sumer
they well might have done 25
spending power has in¬
tion, and give us everlasting pros¬ creased. But so have
years ago. It is entirely probable
consumers,
perity.
that
that type of depression is
by 17 million, the greatest popu¬
We all recognize that full em¬ lation
increase
in
our
gone
forever, because we have,
history.
wages
and However, 'to meet that .over-all
better management, and manage¬ ployment with high
certainly,
there will be
spots when profits will not

,

the

security business transacted
New York exchanges comes from persons residing/; !>j

,

they did not take us into bread¬

of

'

the

exposes

an

increase in stock

J,;/
t.u.

the whole business life of

community to serious damage through loss of

jobs, customers and tenants. The payroll of the New
York Stock

Exchange and its members approximates

,$100,000,000

per

year."

—

Memorandum by

.^

the

Lieutenant-Governor and the Controller of the State
of New York

on

the "Fiscal

Program of the City of

New York for Submission to the 1953 State

lature."
If

-

Legis¬

.

only such proposals were always so convinc¬

ingly demolished!

L

>

The Commercial and Financial Chronicle...

36, (920)

We See It

As

them to be unfair to the new

report in

closely similar to those of the
Northern Republicans. In the Southwest, the oil and gas
interests give a similar coloration to our party.
.
.•.
"I am confident that in time this situation will right
interests and views are

11

•

Itself. The liberal movement in the South is real, and

To

It will grow with time. Sooner or later unionization
come to the South. So will Negro suffrage. As all this

will

Honest

to the official

platform."
>

position of

'

•'

-

Democrats in Congress are

our

The learned Senator

-

party as laid out in last year's

•'/' •

;

is, of

course,

addressing himself

.

.solely to the situation by which his own party is faced
in this year of our Lord, 1953, or
that not only the opposition,* but

»

else he would have added
the party in power, is di¬
vided in this way, so that it is difficult at times to identify
-certain members of either party except by the label they
wear; We object, however, to this easy classification of the
elements of the parties into "conservatives" and "liberals."
The fact is that only by assigning new and certainly not
very logical meanings to these two terms is it possible to

;

•.,

ss *s

we

have

no

well known is

ei economics at

one

to be

a

at this point. It would appear that to
worthy gentleman the ownership of property or suc¬
cess in business not only makes a man a "conservative,"
but a "crypto-Republican," and not only a "crypto-RepubJican," but a citizen who is driven by some sort of inner

bis

use

.

(

use

an

earlier

analysis had clearly shown that he is

"•

;

• •

what I most fear about the

a

"There is

an

especial obligation

Democrats believe that the

weighted the scales of their




news

<

federal .and
state
in ^ the courts.
No '

upon

governments

longer

a
congressman vote
bill which imposes an
unreasonable
regulation
upon
business in anticipation that the
courts will invalidate the legis-

can

on

aye

lation.

a

As

before

never

in

.

the

history of the country, the eco¬
nomic liberty of our people rests
in

the hands of
If

law

business

affects

the

elected rep¬
is passed

our
a

United

States

generally

that business in

which

is

the

unwise,

courts

views

on

to

which

and
a

mari¬

cannot
substitute

we

the merits of the

legislation and readily invalidate
it
upon
constitutional
grounds.
TJ.

resoonsibilitv

™'s
j

extends

"spons^ty extends
enforcement

officers

of

.;

..

» w

as

.

they

had

"

the

n

vlfeJ
President
Steel that a bid by that corpora.

customarily

tion would be welcome. U.S.
^teei submitted a bid for $47,500,000, which was accepted sub¬
]ect to an opinion by the Attorney
General as do whether the acqisitioh- would violate the antitrust laws. Although U. S. Steel
estimated that the addition of the
Geneva plant would increase its

.

.

Reed

testimony clause,'^furnished the
records requested;;; Subsequently,
other property, disconnected from and on the basis Of; this informathe enterprise. As to such prop- tion, and in spite of -his claim
erty, the employer stands on the of immunity, he- was tried and
same footing as any other propconvicted of having made tie-in
erty owner.
The refusal of sales in violation of the Price

-

•

,

enterprise gives

.

this

em-

an

owner

.

to

ingot capacity to 51%-of the-total

m§ot production of the Pacific

.

allow

hall's

the

Coast area, the Attorney General

Control Act. In Shapiro v. United

States, decided in 1948, his con- estimated^ the increased capacity
an unfair labor practice
any viction was affirmed by a five at only 39%, and ruled that this
more than a refusal by any other to four decision of the Supreme
increase would not place the corprivate owner would be."
And Court. In the majority opinion poration in violation of the antihe
concluded
that
the Board's Chief Justice Vinson held that trust laws.
The sale was duly

use

.

«

for union organization is not
.

.

.

construction of the immunity clause applied only
"rajses serious prob- to records protected by the conunder
the
Fifth
Amend- stitutional privilege, and that the

approved.

(and the Court's)

Administration

upon the press. Most
majority of the papers
columns against us dur¬

tation '

ployee no rights in the employer's

the

be stated very

11s

WA'W'"™
Constitution

has, by these
decisions, lost a good part of its
as,, an instrument
of limi¬

/'
And Mr. kept.
In compliance with the
(with whom Chief subpoena,
petitioner appeared,
Vinson 1 concurred)
con- and,
after
claiming immunity
that
"employment in a under the applicable compulsory

practice.

tended

statute

lems

.

ment."

.

„

.

,

-

•

privilege did not apply to these
otherwise.
•
records because businessmen were
The Fifth Amendment of the required to keep, them by adr
Constitution
provides
that
no ministrative ~ regulation
and this
person shall be compelled in any requirement made them "public
criminal
case
to
be a witness records." As to this, Mr. Justice
against himself, a principle that Frankfurter, dissenting, said:
goes back to the time of John "But the notion that whenever
Wilkes, when Lord Camden estab- Congress requires an individual
lished
it
as
a
basic
limitation to keep in a particular form his
upon inquisitorial powers.
Gam- own books dealing with his own
biers,
crooks
and
communists affairs, his records*. cease to be,
h*vp sn-cessfuPy availed themr his when he is accused of crime
selves of this right in recent times is
indeed startling." ■- And
Mr.
when called before congressional Justice Jackson added: "Of course
committees.
In 1944 a produce it strips of protection only busimerchant was served with a sub- nessmen and their records; but
poena duces tecum ad testifican- we cannot, too often remind our-

Court

.

of

such

business

,

same

simply. In my judgment the Republican
pjlrty was put into power by a fusion of giant business and
^giant propaganda—a combination of huge companies and
newspapers with 90% of the circulation in the country as
well as virtually all of the weeklies and 'slick paper' jour¬
nals. Big business and big
publishing have now taken over
big government—and with it the big military, which tends
emotionally to side with big business anyway. However
excellent the personal qualities of the individual men cho*sen for office, the prospect of this
mighty aggregation has
jwt the Democrats in Congress on the alert for the inter¬
ests of the ordinary citizen.
7 'T
can

which

measures

The

force

keep records of their transactions,

Justice

victim of it.

new

union

unfair

denial

whether

Justice

.

paragraph of this

of

labor

:

r

But the Senator in

^

propose.

of the United States

of

of the hall could be an

doubts

:

what political power he is able to acquire for

selfish

interest, while the poor man, the small
former, and the labor unionist would never think of doing
anything of the sort, or if he did it would be a good thing
for the country as a whole. This seems to us to be a strange
sort of delusion. The Lord knows it is common enough,
*but one might hope that so learned and distinguished a
member of one of the leading parties as Senator Douglas
would prove to be above such twaddle.! "\'K
own

for

privately- of the Office of Price Adminis- c.^un"f *he
war,.,United
tration and to: produce "all dupli-; States Steel erected a steel ingot
cate sales invoices* sales books, plant.
the government at
if applied to properties owned by ledgers, inventory records, conUtah, at a eost of nearly
others; and it was not unanimous, tracts and records relating to the $200,000,000.
The plant had an
Mr. Justice Jackson declared that, sale
of
all commodities from
capacity of more than I,assuming
that
the
employers Sept. 1, 1944 to Sept. 28, 1944." 200,000-tons ot ingots. After the
had direct control of the room The subpoena was issued under war, the government wished to
(which he did not find to be authority of a price regulation dispose of the plant,
and the
the case), he "would have serious which
required businessmen to Surplus Pioperty Administrator

this

devil to

1

as¬

properties to enforced uses
which would not be constitutional

somewhat distorted notion of basic facts
us

the

held

of his own, however,

to prefer to ignore this bit of history and to
adopt the loose (and even misleading) jargon of the day.
However, it is not the Senator's choice of words, but what
Which interests

seems

.

must

restrains

dum issued by the Price Administrator
under
the Emergency
to involve Price Control Act. The subpoena

character^

having

government

stitutionality, of
they

in

those

*

by subjecting their

men

lie appears

appears

"disparity

.♦

even

greater; responsibility

sume.

treatment and directed him to appear before
discrimination against" business- designated enforcement attorneys

deeply learned erstwhile professor
of our leading universities, is, quite
reasons

decision

The
•a

a
.

of

power

which

against

discrimination

the union."

doubt at all that Senator Douglas, who

familiar with this fact: For

that

means

expect

Strange Notions

Now,

discriminatory

or

their

and

related

though the business is not actually
engaged in commerce itself, and
that government may now impose
such regulations, notwithstanding
the due process clause, unless the
regulations are clearly arbitrary

ner

ment

impose

commerce,

resentatives.

Senator Douglas.

Continued from page 11

,

to

involved

interstate

in

their original, time-honored meaning, it would be
tho men-Senator Douglas would label "liberal", who would
be obliged to wear the "conservative"; tag, while those
<mdinarily regarded as "conservative" would be the "lib¬
v..-;/

not purely

Democrat than Franklin Roosevelt, Truman or pos¬
even

the..:

by

the Congress

States

operations

to

other but a purely party sense it is not always
these days to identify "the opposition." President
Eisenhower is more nearly a Jefferson, Cleveland or Wil¬
sibly

construed

United

'

easy

son

Constitution

the

to enable

as

the

the

In any

.

carry

'

are

*

restraints upon business whenever

the Eisenhower banner.

way. The fact is, strange as it may
to the uninitiated, that were such terms permitted to

,

of

Senator Douglas' party has -been domi¬
nated by this latter element in the population, but if that ;
party were true to its own past it would now be under

political leaders in this

erate"

Courts

In recent years

describe the philosophies or the attitudes of current day
.seem

they

that

fact

broadly

so

Disagreements

The real differences—so far as

likely to speak with a divided voice on many issues, and
te&my Southern leaders in the House and Senate are likely
Wtake stands which in some respects are directly opposite
Hz

The

squabbles for places of power—grow out of honest dis¬
agreement as to how the public welfare is best served.
There are still many in this country—and we hope that
a majority of the members of the Republican party are
; among them—who believe in the American system. There;
are many others—and by no means does the Democratic •
party harbor all of them—who believe in the doctrine of a
'paternalistic and omnipotent state which cares for those
who either will not or can not fully look after themselves. ,'

.

-

of the United States has now been

nest

their

a

Unduly Broadened

~

parties which will clarify our position. But
this to take place soon or all
we

regardless of the consequences to any or all of
fellow citizens.
/ j *
"
' \
;
: >'.

make

Congress' Powers Have Been

not only without solid basis in fact but are posi¬
tively dangerous to the public good. The basic "division'*
in this country is not today—we doubt it it has ever been
—between men and women who have the general welfare
at heart and others who seek constantly to feather then-

it would be foolish to expect

"In the meantime,

professional politician. We deplore it because

earnestly believe that it, and the related conclusions
the Senator and of the others who reason in the same

own

the.

to

to

they hit upon a successful method
of competing."

way, are

hap*

laws

businessmen

them compete, we cannot in fair¬
ness also apply the lash whenever

we

of

"If

said:

has

apply the lash

to

are

anti-trust
of

backs

Douglas, but our interest in it is not that it has

many a

courts
the

of

by the Senator or that it in effect has been said

by

.

;

the

he

dissent

recent

like Harry Truman

more

been said

is

the liberal forces, inside the Democratic party will
strengthened.
"At the same time, the crypto-Republicans who have
been operating as ill-concealed fifth columns inside the
Democratic party' will move into the open on the other
side. The ultimate result will be a healthy differentiation

atonee..',

much

sounds

of sueh a
.

Administration. But will they

than Paul

■'

pens,

between the

this

us

the tendency

of

principle once approved, ta ex¬
pand itself in practice 'to the limit,
of its logic.' "
And in a more "•

prominent position facts unfavorable to the
as they may develop?"

a

Republicans

particularly strong not only in Alabama but also in such
states, as North Carolina, Tennessee, Arkansas and Texas. .

be

selves

ing the last campaign. Whether or not they agree, the di¬
rectors of the press now have the chance to prove our
suspicions and fears to be ill-founded. We do not want

Continued from first page

Thursday, February 26, 1953

But

saw

the

majority

of the
,

,;;

Eight months after the Geneva
plant

was

sold to U. S. Steel by

the
government,
the
Attorney
General filed a complaint against
the corporation charging it with
a Sherman Act violation in agreeing to purchase, for $8,250,000,.
Consolidated Steel Corporation, a
West Coast steel .fabricator, as an
,

outlet for plates and shapes produced at Geneva. The Attorney
General contended not only that
the acquisition would eliminate

competition, between
U. S. Steel and Consolidated but
also that the agreement to acquire
Consolidated was an attempt by

substantial

U. S. Steel to monopolize a part
of interstate commerce. This was

in spite of the fact that the At*

Volume 177

Number 5198

.

The Commercial and Financial
Chronicle

.

.

(921)
torney

General

had himself

not

ap¬

the far more significant
purchase of the Geneva plant only
proved

few months before.

a

U.

escaped the brand of
£n that case by
Supreme Court.

American

haunted
tor

his

The

name

pitfall is

economy

is

the

and

are

forcement.

the

For

the

in

important

an

country,

and

enforcement

dangerously

/

.

from

that

-

en¬

American

"has

than

businessman,"
the

served

we

to
to

He has directed the way
our material
prosperity—and it is
the highest in the world. He has
defense

our

The attempt to apply legal con¬
over economic forces
is, at

trols

less

EBS stockholders at $22.50 a share on

Justice

Jackson

follows

as

has

the

on

Under the revised

proval)

-

tions:

"I

that the

regard it

produc¬

ques¬

controls

quired, but to

warning

a

as

determined

and

only

event, but the judicial
not well

such

or guide,
after the

possible

should

Other methods

even

of

unnecessarily
minate.

demands

insist

cutors

restraints

administrators
claim for it.

return

to

the

and

prose¬

plea here for

freedom-of-con-

philosophy of ttie 19th

tury.

I

realize

cen¬

that/"the complex

society in which

we

live de¬

now

mands

that
professional
people
subject to sound restraints in
respect to their qualifications; and
I appreciate, too, that this
great
American economy of ours can~
be

not

function

straints

entirely without re¬
imposed by law.
But I

think

that

while

we

this

is

a

in

are

time,
desperate

proper

this

struggle with the Tbr&fs pi totali¬
tarianism in other
lands, to take
account of the fact itliat we all
share the responsibility for main-'

taining business and professional
freedom in

our

own

country.

This

responsibility extends not alone
our

courts

but

Sfk. at $32.75

likewise

to

to

Jegis-r

outstanding

principal

this connection

I

would

like

to tell you
something about the
.attempt that the legal profession
3s making to assure
that every

in

person

this

country will have
benefit of legal counsel,
irrespec¬
tive of his ability to pay. Without
going into detail, the legal pro¬
fession has established
this

nation

provide

legal

aid

competent

throughout
societies

legal

of

and assistance for those

who

fees

are

for

likewise

cipal

without

among us

money

legal services.
established

cities

We

in

pay

have

the

prin¬
of the nation lawyer

reference offices
associations

to

in

the

through

local

which

bar
peo¬

ple

of moderate means may be
referred to lawyers who will help
them

within

the

limitations

of

portions

individuals,

completion

in

this

man

entire

Gas

or

and

of

as

two

dividends,

country

shall

will

be

publicly owned.

Dating

back

founder of

a

to

1891

when

a

predecessor company

created

the

abrasive

material, the business of

The

first

manufactured

Carborundum

Company

ex¬

tends

today throughout the world,
having application in almost every
field

of industrial activity. Prin¬
cipal customers for the company's
widely diverse line of abrasives

include

the

and

ery

tools

automotive,

machine

and

dies,

machin¬

tool,
cutting
electrical
and

agricultural

equipment, iron and
woodworking,
and
many

industries.

Consolidated

net

sales

its

and

company

the

of

domestic

and

Canadian subsidiaries for the year
1952 were $70,173,250 and net in¬
come

was

$4,782,503,

common

share.

common

stock

have

rently

being

aries

company
own

the

and

paid in
are

cur¬

annual

an

and

United

many
now

and

its

subsidi¬

States,

plants

four

in

England, Ger¬

Norway. A

plant

new

under construction at Akron,

Y., will produce zirconium

hafnium

150,000

sponge

pounds

metal




or

a

of

annually

year

Commission

6.00

is

-

(lends

now

and

Feb.

by

the

certificates

authorization

These certificates

3.80

3.80

$25.88

with

includes $3.77

to

be

realized

pany's investment of cash in utility company securities but the
company will have essentially the same freedom to invest in
non-utility securities as is generally afforded investment com¬
panies under the Investment Company Act.
appreciation

& Foreign

in

Bond

and

Share's

are

lishment of the

new

remittances

might be put on a current basis. The resulting im¬
Power's position might restore the stock
to its former $12 price. This would add some $3 a share to EBS's
1954 portfolio value.
in Foreign

provement

and

se¬

train stop, steam,
electro-pneumatic

and. 351,500.,hp.
road

than

Included

to

locomo¬

cost

the

R.

W.

less

not

1

in

are:

diesel-.

switching

$6,000,000.

group

underwriting
Pressprich

&

Co., and Mullaney, Wells & Co.

With Vercoe & Co.
(Special to The Financial Chronicl*)

COLUMBUS,
Eckert

with

has

Vercoe

Bank

&

Co.,

Building,
York

New

Ohio—Genevieve

become

Exchanges.

associated

Huntington

members

and

of

the

Pittsburgh Stock

Miss Eckert

was

pre¬

viously Secretary for Freeman &
Paisley, Inc.

United

Gas, according to some forecasts, may be able to in¬
around the $2.15 level and the dividend
might eventually be raised from the present $1.25 to an estimated
$1.60.
While the current price of 28V2 seems to discount this to
crease

some

its

earnings to

extent, the 1954 value of $3.08 in the above table might well
by 25 cents or more.
I

On the other hand there is some uncertainty as to the future
earning power of Ebasco Services when the present huge construc¬
tion program of both utility and industrial companies tapers off.
Possibly this is adequately discounted by valuing earnings at only

five times, particularly since the construction programs of utilities
for 1953, 1954 and 1955 are larger than for 1952. In any event it
seems

worth

will

be

almost

for

to

$30

a

share

if Ebasco

continues

to

do

well, thus

recovering the payout to stockholders.

Assuming

five

a

a

liberal payout of earnings (as in the

,

case

of United

Corporation) it is estimated that EBS might be able to pay $1.25

with

Co., 507 Main Street.

possible that the EBS portfolio at the end of 1954 might be
close

•

$1.50

in

"tax-free"

ning in 1955.
American &

Gibbs
■

(return of

capital)

cash dividends

Foreign Power holdings

can

be spread

the period, such dividends could be
paid for a long
The company could realize these losses

$

begin¬

Assuming that annual realization of book losses

on

by selling some of its FP

shares from time to time1 and repurchasing them' later if desired.

A

y
■

HWDQUARTW
5)§iriAK£ CITY '

GROWING

iiiiiimittiiiiimiiiitimm

,

COMPANY m

IDAHO

COLORADO
>

years.

;

WYOMING

evenly over

period of

^Serving Jn

i.UUTAH.~

iihiihiiimiiiiiiiumiiihfiii

'

A

GROWING

mimimun

■

WEST

'

•;

.

Co.; Freeman & Co.; The Illinois
Co.; Wm. E. Pollock & Co., Inc.;
Gregory & Son, Inc.; Ira Haupt
& Co., McMaster
Hutchinson

port¬

Power's difficulties in

bringing cash
being gradually ironed out, and with the estab¬
exchange regulations in Brazil and the grant¬
ing of a $300,000,000 loan to BraziMast Saturday by the ExportImport Bank the company anticipates that it should be reasonable
to expect that exchange remittances might be greater during the
current year than in
1952, with the possibility that exchange
Brazil

from

to be

passenger locomotives

automatic

tives—estimated

will be admitted to the ranks of the investment compa¬
In the meantime restrictions will be imposed on the com¬

future

are

brakes,

J

pany and

about

to

Interstate

electric

.

from

<

American

subject

by standard-gauge railroad
equipment — 22,250 hp, diesel—

Some time within two years from the effective date of the
plan, when United Gas holdings are reduced to less than 5%, EBS
should be released by the SEC from the status of a holding com¬

What

is

the

cured

..

folio?

by

Commerce Commission.

til,250 sliarcs of United Gas (of which 525,000 will be offered to
stockholders on rights) in 1954, or within two years from the effective
date of the plan. These funds will be available for reinvestment.

nies.

to
was

from 2.30% to 3,15%, ac¬
cording to maturity, and issuance
of

earnings except amounts equal to value of divi-

Gas stock

1953

yield

Foreign Power (3,941,985
8)

paid in United

1,

inclusive,

20, by a group
Halsey, Stuart & Co.
Inc. The certificates are priced to
on

generator

sale of

Sept.

1968,

electric

and

period.

Jamieson

1,

made

6.00

which

Joins Gibbs & Co.

A.

offering of $4,500,000 Illinois
RR. 3% equipment trust
certificates, series 37, maturing

headed

$31.10

or

&

An

Central

semi-annually

3.08

retained

ffct*

in

Halsey, Stuart Group
Offers Equip. Tr. Ctfs.

March

::$13.00

no

North

the

12

states.

a discount from market value
These rights might be worth about 30-40c,

14.30

for

in

to

group

than 90% of the

more

Services, Inc. (valued at 5 times
estimated $4 million earnings)

sold under contract to the Atomic

Energy

offices

of

be increased

operate six

Canada and five in

N.

at

the

of $1.40 per share.

The

in

paid

and

per

on

been

each year since 1922
rate

$3.12

or

Dividends

WORCESTER, Mass.—Howard
ever

chain

American

Ebasco

family. Upon
sale, approxi¬

woman

forfeit any right because he does

Finance Corporation in Maryland.
This expansion increased the

$7.00

Allows

•

of expansion

program

have been made available to

holdings
foundations and

of the

a

971,250

United Gas at 28V2

*

int

city with
DeHaven & Townsehd,

in New England and has
acquired the 30-year-old Liberty

Net Cash and Marketable Securities—

at

associated

offices

January, 1953 December, 1954

shares

He his

years.

Acceptance Cor¬
poration has recently added to its

210,000

through the capital distribution and dividends,

American &

ent

North American
j

practicable after final approval of plan.
years after court order approving plan.

the

(Special to The Financial Chp.ontcle)
no

Under

Values per share of EBS as of recent date compared with an
estimate for the end of 1954, work out roughly as follows:

26)

m

Crouter & Bodine.

income under Federal tax law.

group

t

s

e

.

be added to the $7. None of these rights, capital distri¬
dividends will be taxable to stockholders as ordinary

can

butions

of

(Feb.

v

banking

the firm of

1954

'

quarter share of UGC for each share of EBS held—about $7 a
share in terms of the recent price of 28 V2 for UGC. The subscrip¬
tion rights to be given in 1954 will be on the same basis as those

mately 48% of the 1,536,430 out¬
standing shares of common stock

to pay. We have not
accomplished all that we must in
this field but our objective is clear.
no

*

■.

Stockholders will receive in 1953-54 about 1,313,000 shares of
United

ac¬

tive in the in-

t236,250

Gas stock disposed of will
Bond and Share stockholders.

being

their ability

It is that

■

t525,000

.

the capital distributions and the

trusts of the Mellon

to

advice

today

nationwide

a

resents

other

In

-

2i"o,6o5

-

—

United

of
underwriters headed by The First
Boston Corp. Priced at $32.75 per
share, the stock being offered rep¬

It applies also to the
professional
and business interests, themselves.

enforcement

producers

abrasives, is

accomplished

through

stock of

common

world

manufactured

steel,

and

Sh.

a

Distribution of 271,940 shares of

officers.

lators

soon

within

been

this

*892,500

The Carborundum Co., one of the

the

no

as

f

Kunkel

Mr.

has

Frank S. Kunkel

Including the rights offered to stockholders last November,

which

the

which

making

1953

*"

...

between 10% and 15%.

and indeter¬

courts

made

be made

o

Ameri-

can.

ap¬

given last November, i.e., l-for-10 at

are

sought to be enforced in the courts

clearly

tract

economic

democratic

should

vague

Our

which

that, in the broad field of public
control
over
business, constitu¬
tional issues aside, the legislation

a

dynamic

a

Carborundum Com.

na¬

Our legisla¬

laws

-'

1,102,500

essen¬

society."

avoid

terpretation

am

effective

an

in

system

forcing upon
the courts the application and in¬

I

the

preserve

re¬

are

adapted to exploration of

industrywide, and

tionwide, questions."
tors

is

process

restrict

to

nor

controls

tial freedom of action which makes

mination.

law vague

where

for final

SEC

Shares

Dividend distribution

*To be

change is needed,

Clayton Act submits such

economic issues to judicial deter¬
It not only leaves the

'

■

Capital distribution
Rights -to stockholders-

tTo

no longer should be
slighted,
but rather should be
strengthened,
not to prevent change where

unfortunate

as

before the

i.

....

men

the judicial process to deal effec¬

tively with broad economic

(now

additional 2,073,750 shares will be disposed of as fol¬
lows, finally leaving 567,031 shares in the Bond & Share treasury
as an investment:
-

to himself as a man of
business. These rights of business¬

commented

North

an

V

Vice-

President

l-for-10 basis during the

a

Ex¬

Fernon,
ecutive

field for many

plan

taining

inadequacy of

Randolph C.

period Nov. 17-Dec. 3, 1952.

form, he is neverthe¬
individual, with rights per¬

an

Corporation.

(Bryn MaW,
Pa.) was an¬
nounced 'by

in corporate

best, a difficult task and, at worst,
virtually an impossible one. Mr.

American Acceptance

Holding Company Act
was recently amended
by the company. It reflected changes sug¬
gested by the SEC which in effect require Bond & Share to reduce
its holdings of United Gas Corp. common stoek to less than 5% of
the outstanding shares within two years from the effective date
of the plan (which will be the date of Court
approval of the plan),
instead of by the end of 1955 as originally proposed. At the begin¬
ning of 1952 EBS owned 3,165,781 shares, or 27% of the outstand¬
ing stock of United Gas; however, 525,000 shares were offered to

tivity—and it has enabled us to
triumph in military conflict. Al¬
though he may conduct his affairs

,

The

—

election of Frank S. Kunkel to the
board of directors of the North

Electric Bond & Share's "final comprehensive plan" to con¬
form to Section 11(e) of the Public
Utility

nation

seem-willing

Utility Securities

Electric Bond & Share Co.

assurance

grant.

>

--

best

PHILADELPHIA, Pa.

By OWEN ELY

in

article:

says,

better

uncer-

Economic Forces

-

.

The

law review article

a

"The
he

Applying Legal Controls Over
-

inherent

are

many of the thoughts
I have expressed
to you

established
.

Public

a

man," and I would like to close
by repeating a paragraph to you

next

-

in

titled "Freedom and the Business¬

day to prosecute that company for
buying a relatively small fabri¬
cating plant to utilize the output
of the ingot plant, is to make law

/tain for business.-

system.

today in

area

the

on

Frank Kunkel Director

is

maintaining the free enterprise

which

government

day to sell a $200,000,000 ingot
plant to a company which thereby
gains dominance of basic steel
production

Believing

losses which

vanced

en¬

one

of

burden

My young colleague, Professor
Whitney Harris, has recently ad¬

spectre
law

of

system lies in the free and open
competition of business itself.

disturbing to the

as

industry.

that
of

potential
aggressive busi¬

inconsistent

as

kind

competitive enterprise sys¬
tem, business must accept will¬
ingly, and even eagerly, the risks

a

neither

with which

money

free

which

Act

the

lawyer's fee.

same

upon

by the spectre of Sena¬

to every
leader.
But

nor

in

vote

businessmen

pitfall
ness

The

Steel

monopolist

one

Sherman.

bears

S.

have

to pay a

The Commercial and Financial Chronicle

38

TOTAL ASSETS of Texas Fund

With Garrett-Bromfield

amounted

(Special to The Financial Chronicle)

DENVER, Colo.
Struthers
,

Thursday, February 26, 1953

...

(922)

Mutual Funds

associated

become

has

/

James R.

—

By ROBERT R. RICH

with Garrett-Bromfield & Co., 650
Seventeenth

Investment

with

previously

Pennsylvania Reconsiders Funds for Trustees

for

to

McGravV selected for the Fund are char- South Jersey Gas Company comCorn Proa- acterized chiefly by low labor cost 111011 stock Wm. M. Hickey, Presi-

improved
today
when Electric Company and
Merle Campbell, Secretary of ucts Refining Co.

greatly
L.

'

and

a

dent,

wide margin of profit.

vania, related to The "Chronicle"
that
the

he

did

not

expect to oppose
Bill which was in-

Snowden

the

into

troduced

Legisla-

State

ture Monday evening of this

week

Prospectus from your dealer or

has

Bill —which

Snowden

State Senate

referred to the

been

NATIONAL SECUR1TIES&

that will permit trustees

RESEARCH CORPORATION

sylvania to invest in mutual funds

UIIIKIIIIIIIIIfl

MiiiiHiaiMM

a as

thev

if

and

vears

have

■■*•■■■•■•
■•■■■■•■

capitalization

with

WELLINGTON
4HLN])

aaaa

■aaa

aaaa

■aaaa
■*•■•■

fiaaaaa
■aaaaaa
laaaaaaa

odd

mutual

Rill

would

priorto

good bill
would

cerning

a

continu-

mutual

funds

as

in-

an

strument for trustee investment.
In

or

3, PA.

indicated

Camobell

abstain from

oppose

of his earlier opposition con-

ance

investment dealer

nrettv

a

the

two

Summer

"Prudent

Berger
State
bell
for

1951,'when

Man"

bills

Snowden

and

troduced

of

into

the

the

—

in-

—were

Pennsylvania

Legislature,Secretary Campknown

made

the

his

Berger Bill

which

passed,

preference

subsequently

permitted

trustees

to invest in listed securities meet-

ing certain provisions and in bank
and insurance stocks, listed or unlisted
time

The

competitive bill at that

Senator

—

Snowden's

also

-

allowed mutual funds and did not
pass.

It'

is

reliably
said
that
Mr.
Campbell's concern then was that
delineation

some

be

J

made

and

standards set for mutual funds in
a way similar to the Berger Bill's
specifications for trustee invest-

Lehman

195.971

208,789

.
-

3'394

decline

in

net

total

the

$651,927

rep-

the

Excluding

special

credit, earnings were 23.2 cents
per

share.

Gross income other than

the 2,076,-

on

profit

the sale of South Jersey stock

the beginning of this quarter, it compared .with $3,807,017 in 195L
reported yesterday by Robert The larger income resulted pnn-

tv,o

the

President;- in

Lehman,

a

the

on

of

^n<"ng-- compared with $69.33 at amounted to $4 036 545 in 1952

doutstanding is responsible
° f
*terim
Net

shares

$73.22

was

$5,620,586 $5,359,724 562 shares of capital stock out-

Dec' 31 —3>b86
i

income.

per share of The
Corporation as of Dec.

31, 1952,

remainder

the

resented the special credit to bet

D,pnDTC

CLOSED-END REPORTS

$1;0J

$1.18

.

mu

PMn

$$I'4r NET ASSET value

$i:44

shareholders,

of

for

Bill

$26.92

-------

lugDec^il
No.

40

been
been

1929.
Snowden

I don't expect to

Secretarv

he

have
have

currently written—is

—as

it

"The

saying,

hut

all

five ol
live

organized
In

funds,

eliminafn

Jwh ch
which

th^
them,

01
of

■aaaaaa

prospectus from

priority on
Of the 140the Snowden

earnings and capital.

*■■■■
■■■■■

PHILADELPHIA

cembe{.31

senior

no

compensation,

r

1952

1951
.

Retirement Trusts.-This material values, on the sale last July ,of
is designed to equip the securities all its holdings of South Jersey
salesmen to render a service to Gas Company common stock. ,A
firms interested in the tax advan- part of this profit $1,052,664, \yas
tages of this popular form of credited to capital surplus, ajnd
executive and staff

Fiscai

Fiscal

■■■■■■•■

■■*■■■■■■■■■

■•■■■■■■•MM

your

table below:
.

New York 5, N. Y.

•

in Penn-

having total assets in excess of
,
Dec
31
$10 million at the time, of pur- capital gains' per sh.
chase, if the funds have paid divi- divs. per sh. from inc.
dends in 12 out of the last 16 ToUl1 net assets< De"

Eiloblithed 1930
120 Broadway

,In

KEYSTONE FUND K2 recently DISTRIBUTORS GROUP Incor- to income and earnings amounted
issued a report to shareholders porated, sponsors of Group Secu- to $3,142,448 or 22 cents per shafe.
covering operations for the fiscal rities, Inc., has issued to dealers * Mr. Rickey said that the comYear ended December 31, 1952. a new edition of its Standard Plan pany had realized a net profit of
The "K2" portfolio consists of 34 for Employees Profit Sharing and $1,704,591, based on 1939 restated

speculative preferreds selected for
capital growth opportunities. The
Banking Committee — will be if results for fiscal 1952 and the
passed by the Legislature,'an year-end figures are compared
amendment to the Banking Code with those of fiscal 1951 in the
The

A MUTUAL INVESTMENT FOND

announced yesterday.

1951 there was no special credit

Rankin^ for the State of Pennsvl-

INCOME SERIES

Chemical

Monsanto

Aircraft;

Douglas

trie;

under the "Prudent Man" Jaw was

NATIONAL

of

the

Republic Steel.

trustees and

that

LIKELIHOOD

THE

in

Service Corporation.

$11,338,861

$5.40, an increase of 8.3%. While or 27,3 cents per share of which
Eliminations Texas Fund confines its invest- $651,927 or 4.6 cents per share
Pennsylvania will be permitted of individual stocks included Co- ments
to the rapidly - growing was a special cre(*it to net income
invest in mutual fund shares lumbus and Southern Ohio Elec- southwest area, the investments representing profit on the sale of

Exchange. He

the Midwest Stock
was

of

members

Street,

shares

Company; 8,100 shares of Humble
year ending Dec. 31, 1952, in con- Oil & Refining Co., leaving 30,000
trast to total net assets of $6,473,- shares of this stock in the port429 for the year ending Dec. 31, folio; 10,300 shares, Phelps Dodge
1951, reflecting a gain of 75.1% for Corporation, leaving 15,000 shares,
the period.
During the year, net asset value EARNINGS of The United Corper share increased from $4.99 to Portion in 19d2 were $3,914,926
to

report to stockholders.
ordinarV

income

for

in■ ■
the

^nontSIndedS31? 1952^

cipally from the increased Niagara
Mohawk Power Corporation qSarterlv

dividend

which

rate

took

effect at the end

^
f®sets 01 the *ana> inis:,r^IAec1^ the first half of the Corporation s a $77,116 dividend from South
.more. cautlous attitude of fiscai year, amounted to $2,262,007, Jersey common stock in January
Keystone investors toward specu- as compared with $2,354,928 in the 1952. South Jersey Gas Company
reflects

This

Fund

the

nf

r

+

u

if

'

n

^1,J

7'

0

.

'"the1 market
pfriod of the pre" had not Previously paid dividends,
P8**1 iffr tQia TpviL^F^nd JZT
Durlng. the« saa?e Pe"
Net assets on Dec. 31, 1*52
ii +'
^01P°ratl0fJ. realized a. amounted to $72,811,001 (based on
^ has paid a total ol $4.86 per net protit on securities sold of indicated market value for investshare from realized capital gains, $3 151971 as compared with ments held) or $5.17 per share,
a
n
asse^ value per share $839,125 foi the six months ended
compared with a net asset
has moved UP from $17;18 *° Dec* dl* 1951'
value of $67,102,611 or $4.77 per
$27-35 at the 1952 year-end. AdDuring the three-month period,
justing for the capital gain dis- the Corporation purchased stocks
tributions, the over-all increase in at a total cost ofc-v$4,912,314, as
capital value during the 3V2-year against total proceeds from securiperiod was about 87%.
*
<
ties sold of $4,942,314. The Corpo-

share on Dec. 31, 1951.
A

intn

^

NET ASSET value at Dec. ol, 1952,
of National Shares Corporation, a
closea-end investment company
^
r' r"
ration s U.*'S. bonds and net cash managed by Dominick & Dom—
cSS?
T"?W t0 ^8,082,921, or 11.8% inick based on market quotations
and stromberg-caitson 4% cum. conv. prenet assets against $17,442,105, as of that date/and after deductferred stocks have been added "to the list or 12%, three months ago. Com- ing all dividends declared during
"T stoc;ks instituted 84.7% of the.year, amounted to $35.56 i5er
30, i952, were: Standard Gas & Electric
n
axSotS^/?n De/o 1 i?S 'n-^iS
a^+e1°J t
360,000 shaies of
$7 cum. preferred and Textron, inc. $1.25 against 83.4 ^ as of Sept. 30, 1952. Capital stock outstanding. The net
cum' conv> Preferred-. - ;
The report showed total net assets asset value one year ago was
■

.

.

ri

fttnd

kfvstovf

short-term

in

50%

mediate-term

. •
Chief additions to the portfolio

about

,

$35.02 per share.

/;

During the year 1952, National

.

during the quarter were 10,000 Shares paid dividends on its oUt-

inter-

or

shares

Government

S.

U.

aggregated $152,051,780.

9

-i

invested

currently

is

nnrt

r

.

folio

of Northern Pacific Rail-

standing shares as follows: from

meni'Tn indivfduaf Equities/*Ap- bonds and 50% in 33 bond issues way Company; 25IJ00 shares of surplus income $409,714.43, tor
parently—with the new Snowden of U* S- corporations, incduding a u.-;S.
Rubber Company;: 10,000 $1,138 per share; from net profits
Bill—this has been done, since it few Canadian Provinces. Covering glares, ,-R. J7 Reynolds tobacco realized during the year on sales

provaT'whkT1"o"'cou7sPeliecounPts ended'Dec. 3°I,
for
9CMTLIMIN: At
■m a

no

obligation please send

prospectus on

great deal in Harrisburg.

a

When the present

will

be

back

sent

Snowden Bill

to

the

Senate

Canadian Fund,

no^cu^enH^k^^^0^1?^66

shares, Pacific Gas & of securities $573,085.57, or $1,592

report shows the following com- Electric Company; 8,500 shares, per share. Pursuant to
parisons with the figures of a year Pittsburgh Plate Glass Company; visions of the Internal
earlier:

•

Dec. 31,

*11

be at least two weeks since Sena-

Net

tor Snowden is to be away for that

SALES

OF

sh.

Co.;

durirtB year ———'

length of time.

€*y

per

National

shares

24,998

$0.73"

«0 73

Company,

Revenue

Code, the latter amount per share

"B"; all new items. Sold were of the special ; dividend paid on
20,000 shares of .'Parke, Davis & Dec. 26, 1952, has been designated

Dec. 31,

$265i5

Total dtvs-from income

Ulriss.

value

asset

5,000 shares, Eli Lilly

the pro-

Gas Transmission

of

Tennessee by the directors as a "capital gain

dividend" for the year.

Company; 6,400

Total net assets in the B1 Fund

Securities

Series for the fiscal quarter ended

had a market value of $18,084,968
at the 1952 year-end, compared
$11,829,397, the highest three- with $18,569,330 a year earlier,
month sales in the history of the The
slight decline in assets of
Jan.

31,

1953,

reported

were

at

leased

Vice-President
rities

These sales
of

Institutional Growth Fund
(formerly Aviation Group Shares)

a

Corporation,
increase

shares outstanding from 709,985 to

Group Shares

Insurance Group Shares
Stock and Bond

Shares

Group
.

(Mutual Investment Funds)

of Institutional Shares, Ltd.
•

Distributed, by

National

represent

an

Secu-

70% from the like quarter

over

earlier.

year

Total

rities

Bank

of

Research

&

of

Series

National

were
Ton

An

Secu-

reported
Q1

at

10*1

aan. ol, lyoi

f

up

LTD.

19 RECTOR STREET, NEW YORK 6, N. Y.

Prospectus

may

the above

be obtained from

or

local dealer.




However, the number of
increased during the

685,540.

Diversified Growth Stock Fund

•

to 4,824.

from 4,711

year

•

w

„

Portfolio Changes. These issues have
been added to the list for investment since

38% from a year earlier. The
largest single fund in the National

June 30,

Securities
oecuriiits

Diversified Investment Fund

Comm. deb. 4f-4S, 196/, tell Telephone Co.

over

Stock

Series
series

Series

$59,099,568
Income

eonfiruies
continues

with

as

of

Series

net

Jan.

tn
10

he
DC

assets

31,

continues

second

largest fund

sets

with

as

the

net

as¬

a

creased

stocks

common

stock

o{

Canada

lst

fund,

in-

holdings of numerous
of which wereBriggs

some

Manufacturing; Celotex Corp.;
Flintkote; Bucyrus Erie; Allied
Stores Corp.; Interlake-Iron Corp.;

-j- 4j/2S>

k> !:-

1967#

Manhattan Bond Fund, Inc«
issues

These
inated

from

have

the

been

British

27/ss,

elim¬

investment

since June 30, 1952: United

Treasury

During the fiscal quarter ended
Jan.
31,
1953,
the
investment
ries,

■

1953.

$29,814,148.

at

1952: United States Treasury 23/aS,

1958 (June): Ontario Hydro-Electric Power

of

management of National Stock SeHARE'S

Diversified Common Stock Fund

shareholders

assets

Q199 Qp»n 479

Fundamental Investors, Inc.

this Investment Bond Fund (its
primary investment objective is
capital stability) was entirely due
to a decline in the number of

according to figures retoday by E. Wain Hare,

company,

1960-55

Columbia

-

list

States

(March);
AVAILABLE

(Prov.

..

of)

(Canada)

3%s,

(Dom.. of)

"jf.F ?

7th Victory 3s, 1972;

Nova

Scotia

1977;

(Prov. of)

(Canada)

AffgclJy';;

_

1970.

p

„

MUTUAL

FUNDS

Hugh w. Long.#®

01/

compAny

■

1964; shawinigan Water

'
;'
®„
^ P°wer Co. lst & Coll. H 3Y2S,
p

THESE

Canada

ynftsco

deb. 3%s

ON

FROM YOUR LOCAL INVESTMENT DEALER, OR

^

)■ at

Parker, Eihaknh

4,

Sew Jersey-

Volume 177

Number 5198

.

.

The Commercial and Financial Chronicle

.

39.

(923)

tal.

That

el i

i,n

m

where

is
a

t

to

stantial

investments

though

By JOHN DUTTON

they

value

You

will

remember

that

Your

on

dur- -go

and

sell

if

turns

-

„r

page

Our Problem—Preservation
Of

downward,

the

values

This Is

pf

some-,

from first

in

•

the

income

will

eco¬

be

not

Pretty

a

Liberty and Free Economy

in¬

and

particular program, but rather of all power to the
state, that the
the philosophy which
I believe people were not able to do the
should guide the Republican
Party planning for themselves, and that
—and the Democratic
Party for only the government had the abil¬

per¬

manently impaired.

Prospect"

out

Continued

even

decline

extent

some

cycle

trinsic

which,

might

nevertheless

(Article 6—Part 2)
"The Second Call

to

nomic

BUILDING AN INVESTMENT CLIENTELE

,

risk,

ever

possible, and to re£ plac e them with sound and sub¬

Securities Salesman's Corner
;

the

spread

hazardous situations

e

Biff Job

that matter.

...

The

newspapers and
thatconclusion, I would like to
others are too much inclined to
your prospect. If he
was
inter-' now show them a
very substan-^b^H6 just one observation of my
classify
every
man
and
ested in investing his capital for tial
every
profit. In fact, many people own- Good accounts are
worth party as either radical
or
con¬
the purposes of providing a steady rebel
today at the thought of pay- working for. They are worthwhile servative.
They try to judge every
income, and also was conscious of ing the Federal tax on
capital seeking out even though many issue on the basis of whether
the fact that his principal should gains. But, at
least, you are on the PeoP1? will not be at all interested one's
position is "left" or "right."
be protected to as great an exin sound investment
right track,®
planning. As

ing

first

your

call

qualified- high-priced

you

tent as possible; you made note
pf these facts. You also obtained
k list of his,; foldings, the total
number

of

shares

in

each

etc.

serves,

With

ipgde

This

data

your

to

you

office and

you-took
you

inventory of his situa-

an

tion.

k

What An Inventory
Thp

fircf

nnrtfniin

Should Prove

in

onoiwintf

tiHlP

in

ton

mhk

ctnnirc

rnmmnn

lirnnd ft™
Ir

or.tr

^

f

n

thSJtnn

not

nr

cw

ic

jSlS!
thereore^too mfn^snecu
stocL for saTet^of the

not

lative

nvprfu

percentages in

^HctiL
listing

A
A

onnnnnt
Overall account.

iht
the

nf

of

stocks, in

common

speculative

stocks, in preferreds
bonds, and in cash, govern-,
bonds, municipals, savings
accounts, etc. should be prepared
on a schedule sheet.
'
\
>
and

ment

The

*

second

the

mine

in

any

step should" deter-

If

one

there

in

company,

in

or

any

industry, this fact too should
indicated

the

on

has

been

summary

prepared for

submission to the prospect.
.

*

On

second

your

again .with

call

sit

down

client. You

your

now

have something important to disIf there is too much in specuiative stocks for safety's sake,

cuss.

show

the

percentages of the

tire, investment

en-;

that

account

is

invested in speculative risk items
and

that

side.

which

Ask

is

on

the

safer

what

prospect

your

is

mpst important to him—put it this

"Mr. Jones, this capital

way.

have accumulated

know

I

you

is

im-

portant to you. You didn't come
it overnight. It took quite a

upon

bit of hard

work

and

some

sav-

ing to accumulate what you have

today.

have

coming to

like
to

wish

no

to

The

you.

out

only

alarm

to

just

that

you

not

are

will

notice

investment

fund

is

a

on

that

your

nomic
one

in

climate.

Quite

come.

However, it is

a

a

in

eco-

frankly,

knows when such

no

turn may

matter of

i

low

booms

I- think

and

can,

again. With such
tion

of

later

or

will agree that such

you

situation

sooner

your

will,

and

come

sizable propor¬

a

investments

in

this

position, what do you
might happen to your capi-

tal if

a

severe

ket took

decline in the

mar-

place?

obligation to obtain
ment that

is

too

money

tive

for

an

prospect's

your

make
do

here

setting the stage
intelligent discussion of

are

portfolio

and,

mistake about it, if you
into this matter of overall

no

go

balance,

planning

and
you

sound

will

gtepg be taken before it

late

that

mutual

utility

stocks

is

going

to

or

that

specula-

operating

ground,
firm

a

funds,

-

or

company

better

some

nreferred stocks.

portfolio

have
that

agree

an

in—

every-

with

you

right off tfye bat that they should




The

munic-

or

with

(forget

give

but

dinner

at
Go

obtain

as

you

who

the slow

and the right

way

Pay

if

belief
the

are

a

pick

agreement

an

Then

that

suggest
fit

will

into

ahead,

and

higher grade
will

:

better

over

the

you

have

that. If

use

more

stocks

common

"upgrade" quality

then

that vehicle. The most impor-

thing
jn

should

you

making

Second:

Determine

how

much

Third: Make
for

This

is the

most

of

liberty through the growth
great Communist state based

a

the Eurasian mainland.

on

argue

on

the. policy
At least I

:

Perpetual

t"*
-

the. day.

for

arguments

them

War—ra

Threat

to

Independence

But

are

stroyed

'

In

I

4—

Guiding Principle

seeking

have

that

expenditure

rison

state

in

time

great

so

into

of

a gar¬

and

more

more

to

have

to

pursue

the

In

peace.

other

words, there are always
guiding principle, flicting dangers to liberty.

a

come

believe

by

to turn this country

as

course

con¬

We
which

consideration wili retain essential independence.

the

which

ought to determine almost Qn the one hand we can agree to
decision of policy today is various limitations on our sover¬
the necessity of preserving, main¬ eignty which do not
really en¬
every

Securities Acts, possibly even
complete, repeal of J,hose laws, taining and increasing the liberty
,:^nd a new and specific set of laws of the people of our country.
should take their place. I am not Every policy should be tested on
a lawyer and I dp not know. But that touch-stone, whether it in¬
something should be done to make creases or decreases the liberty of
.e

3

The

public
do

be

may

yjjjjf

basic

guide

for

peopie

if

today to do

become

framework

an

expect

you

clients

and

to

rely

for gui(janCe in the fu-

you

ture

Not everyone will

ble enougb
and bave

of

should

you
are going
investment job

whom

your

which

upon

a

be sensi-

to sit down with you

reaf

seri0Us discussion

^ wbat should be done along the
lines I have outlined here. But

peoplei>will

many

do

who

are

that

the money they
set

aside* for
and

tani

Those

so.

investors and

^

COmfort

needs

want

to

education-— obtain the independence of our
invest
in own people, and for many years

industry. Some day
able

to

the

and

take

fastened upon

business

by

which

who know

have saved,

^ their"

future

protection is impor-

them^will listen and they

of politicalback

in

what" you

in

doing.

are

believe that this is

"upgrade"

a

one

of

him to

see

the

most

That

job

establishment of the independence
of the United States. The Nation

and

men

women

who are daily devoting their energies and talents to the task of
helping the American people to
better understand what they can
do with their money in order to
make this a better country in
which to live. When you sell securities

you are

America. When
the

kind

should

of

own

selling people
you

on

sell people

securities

that

they

helping them

you are

to protect and preserve their own

W*e Part of America. That's
mighty good sort of
a

living

as

I

see

a way

to

a

earn

that there is

to protect and

to

help

only one
capi-

preserve

which

founded

he

Lincoln

ham

was,

said,

danger it by entering into Inter¬
national
agreements
like
the
United Najtions Charter and mili¬
tary alliances

binding

to

in

to

go

war

us

certain

perhaps
cases

as

it

Abra¬

as

"conceived

LOUIS,

Mo.

—

Floyd

was

that

we

if

had established

could

we

said

give

up

keep it

further

a

little

that

republic

a

and who

so,

"They that

essential liberty to obtain
temporary safety deserve

nf

was
&

previously with I. M. Simon

Co., and

Slay ton

& Company.

from

in

us

in

their

ple

governmental
their religion and

economic

pathize
at

of

many

understand

not

about, who differ

their

philosophy, in

condition,

whom

with

the

do

ideal

peo¬

not sym¬

of

liberty

all.

So also we could destroy our
liberty by a military and foreign
expenditure in time of peace so

cannot

a

free economic system

survive.

within

the

economic

Surely

capacity
system,

can

we

effective

an

program

of

our

free

not

en¬

and

danger

liberty at home
wasteful
protection
of

in

the

liberty
from foreign attack. I believe that
this

tremendous

the French Revolution to

government

ac¬

Russia,

that

and

free

the

could
happy

a

all

until it

best

was

for

was

coun¬

progress

to

have

accepted

even

in

a

countries

they didMiot in fapt haye

liberty.
-

Then

arose

the

is

a

a

our

liberty than that from Soviet

neyr-theory

people^ welfare'

is

Why
liberty
nomic
ture?

prise

the

at home
system
Some

need of

our

fu¬

I

have

not

that term

par¬

myself,

it has seemed to me that

too

business
ihould

vital to

preserving the free enter¬

system.

because

is

so

preservation
of
a free eco¬

and

people talk about the

ticularly liked
it

gradually

that

present program
greater immediate threat to
our

an

in which

way

hope
life

sec¬

government. The philosophy

where

mpinhprs

do

what America is

tivity under

with Fusz-Schmelzle & Co., BoatRiiildinf

legislation of other

or

who

liberty nor safety." * The
liberty established by the new
American government spread via

was

Rsnk

can

neither

Dixon, Sr. has become associated

™~ mf"1DeiS^1
the Mldwest Stock Exchange- He

peoples

result andj
free from,

a

remain

we

the control

devise

destroy any free state. It
Benjamin Franklin who said

people
E.

that

might

tries

(Special to The Financial Chronicle)

insist

great that

who

accepted philosophy in most

ST.

in

American people are tremendous¬

ly opposed to such

founded the
Nation knew of the dangers which

Those

liberty."

tions of the world

With Fusz-Schmelzle

important
is

of

more

was

time to

do today to help my

the

conscientious

investments,

can

sympathetic.

celebrate

we

George Washington,
than any other man,
responsible for the successful

birthday

who,

were

travelers

There are thousands of able and

If

then go
out and see your people with the
following thought in mind. You
have a job to do. It is a good job.

those who

Tomorrow

the

foreign

bored the

even

group

much about

so

liberty and the new era that they
had
brought to the world, that
they

However, you must be-

lieve

citizens talked

our

the investment

legislators

a

the

off

harness

we

practical sugges- early 'thirties. Meanwhile we are
making progress — this I believe.

a

nr0ppanrp

out

way

of

the

see

A

reinvestment.

--ip,,

is

or

policies

many

could

was

Maintaining Persona.! Liberty

some overhauling of

minded

and what stocks should be sold.

It

of

as

I

their

for which of

Government

As far

side

fundamental

a

purposes

radical.

se-

JjW5 in the securities business. We
£aye £°ne a
Since. then,

American

First: Obtain agreement that it

you

direction

the very independence we
trying to protect may be de¬
and against them.
But the true stroyed by perpetuaT war, which
liberal should have some guiding has established many
dictatorships
principles, be he conservative or in this century. It may be de¬
can

can personally go back to 1925

people

'

.

tbp

the

>

give

performance

years

fund

mutual

to

income

of

ac-

shortage of
municipals,

a

balanced

the

of

use

other

your

be free from

in

is

acquired

market

min(j

to

to

there

stability

tant

which is completely
with liberty.

this

keep

be

can

structure

reserves,

good

a

use

the

questions

curities tp the investing public,

do need

is

of

en-

Saged in the distribution of

What

are

matter

a

concerned,

either

way

now

As

American

are

will find

men you

in

founded.

the end. The investment business today has begun
to mature. Some of the most comany. profession

government

per¬

conservative has it done?

a

they

of government and

V1

Petent and able

plans or not.
lip service to
liberty, many people in this coun¬
try today accept a philosophy of
give

suggestions
prospect is that you-

If

count.

t^at

off

and

when he

the

they

fact, votes of millions of other people.
the questions that we face today The American people
certainly
are often questions which
require are not going to let the rest of the
primarily the application of wis¬ world take over this country arid
dom, practical judgment and good boss them. They are determined
sense, and above all a knowledge that they will resist any threat to

will

order

an

liked

While

h less burdensome on the in vest- our people and the promise of a preventive of a more dangerous
war.
But
I
ment industry to carry on the. continued liberty in the future.
believe
we
would
All of us have given lip service threaten
the
great task which lies before it.
very
essentials of
In many cases, advertising restric- to the principle of liberty since liberty if we joined a world state
Hons arc stifling the merchandis- we were small children. But the with an international legislature
ing of securities. Useless regula- truth is that after praising liberty, making laws for the people of the
fi°ns and pecuniary restrictions there are very few people who United States. It is obvious if we
of various kinds are holding back pay very much attention to the have only 6% of the population of
the creative forces that could application of the principles of the world that on any basis of fair
carry the best efforts of our in- freedom, or study the conflicts of representation we would be over¬
whelmed by a tremendous major¬
dustry before the American peo- the freedoms of various groups.
This
country was founded to ity of other peoples. I think theP^e-

overall

primary
if

Gut

list

start.

a

replacement

the

his

over

items:

that

on

sitting.

one

portion of the most specula-

a

tive

a

Don't try to
the whole

and

opponents.

Finally, always remember that

swallow

to

corner.

out

investments

prospect.

your

him

get

of

sources

man

people

left-wing inconsistent

a

press

supports

measure,

you have a special situation to offer that he likes,
(3) The customer who relies
upon you for investment guidance.
Give him your best. He not only
deserves it but he will help you

: I

the

at

received

ity to plan and the power to carry
the plans necessary for th§
people's improvement whether the
out

liberty, and what
First, of course, vtfe
surprised understand it clearly to include,
when those who are tagged as re¬
national independence. We know:,
actionaries turn out in many fields that the American
people desire
haps

sophisticate who buys

securities

own

*n

has

aspect in the

whe,? ^=1 earning a livalternate

fellow-man.

one

in

safer

connected with

are

This

infer

into

handles

good

of

some

invested

now

things I

not

move

securities

If you

terested and cooperative prospect,

does

to

surprised

are

who

to be more progressive than their

(2)

agree-

some

will act

^

You

knowledge

your

sometimes

emo-

|

.......

They

of

is a Predominating weakness)" to find others who will also bethen U is your duty and your come your clients,

vulnerable
think

fear, is

that

" Certainly Avhen you can actuaHy see that^there is too much invested in speculative stocks (and
tar too many investment accounts
today wil1 certainly show that this

a

historical fact that recessions fol-

a

tipns.

in

value,

change in the

a

said

the most forceful of the two

a

entire

invested

substantial decline

is

was

stocks that could be vulnerable to

the event of

use

his

it

articles

him).

the

two,

first

(1) The fellow who only wants
to

gain

and vulnerable position.

'out

here

ac-

of

•

tion

"You

our

hobbles

limb.'"

substantial portion of

motivating
of

hope

Is time to move out of a hazardous

certain that you can protect capi¬
from serious losses is to see

it

is

the

prospecting for business,

are

make

to

way

first

y°u

thing

one

tal
to

The

of

that there

and

most

in

series, there are three types
.people you will meet while

and the second is fear of loss. Of

end, but I would

an

point

primary

stated

this

Aij

Account

aware

behind

tions.

I don't think that the world

you.

is

I

forces

various

be

that

two

are

Toward

an

well

are

is

one

sheet

Order and
You

common

percentages

industries.

I

First$Step

The

com¬

pany which he owned, and information concerning his cash re-

stocks

common

much
freedom

have

a

identified

only.

with

Liberty

much wider mean-

happiness of theiFfuxure could

only be achieved by turning

over

Continued

on

page

40

The Commercial and Financial Chronicle

(924)

40

Continued

from

that industry or introduce

39

page

idea.

tained

ing. Liberty means the liberty of

individual to live his own
and think his own thoughts,

every

life

thoughts taught by

have those

to

if anyone

someone

be found

can

worth teach¬

who thinks they are

ing, the liberty of our families to
earn
their own living and spend
the

which

money

they

on

earn

things that they want for their

the

family instead of turning it over
to the government to be used in
the

government

providing
of
they may

services

probably

want, and
It

not get.
local self-

may

the liberty of

means

not

may

or

government—that is the liberty of
each community to decide what
it wants in the way of

ices which
tion

the peculiar func¬

are

local

of

those serv¬

government

the

—

right of each community to decide
how

shall

children

its

cated,

its

how

services shall be run,

shall

services

fare

«what

be

and

run

they shall apply to. I don't

believe you can

States

unless

freedom
munities

mendous

local

com¬

their

and

decide

to

This

own

is

country

that

tre¬

so

in

sitting

one

no

the

have

do

you

state

of

affairs.

have freedom in

the size of the United

country

a

edu¬

be

and police
how its wel¬

fire

and

American

workman

to

until

he

hall'

British

If
per

that

dously

really

such

tremen¬

and

extended

fit

situa¬

of
a

diverse

country. What fits New York City
Ohio.

fit

doesn't

What

the

fits

city doesn't fit the country. What
fits, the
the

middle

Mountain

West

States

fit

doesn't
the

or

Far

one-

the

as

the

British

are

pro¬

there

are

ob¬

divide

up

per

would not

in

thousand

that

so

ing

one-half

have

in

times

Great

every¬

what

they

Britain—more

of

all

the
things that
make
life
worthwhile—better homes, better

In

fields

many
conditions

states,

counties.

because

existing

but

it

If it

important

is

in

of

the

different

that

not for States'

were

Rights, we would be legislating in
Congress for the city of Chicago,
for

Cook

school

County

district

and

in

for

the

every

State

of

Illinois.
1

What

Liberty Means

powerful for

a

with

deal

a

member

would

The

based

minimum
the

on

theory that without
intervention

government

the

he

is best

fitted.

independence of
his

run

of

own

oc¬

business

It

means

every man

his

or

farm

the
the

it ought to be run as
he doesn't interfere with

as

right
same

of other people to do
thing. In this economic

field any real freedom includes
reward

and

really

incentive

good

if

a

workman

man

and

a

is

is

willing to spend his time and his
efforts
a

on

reward

better
and

work.

incentive

It

means

I

believe

that

it

is

entirely clear that this is the
sult

of

re¬

the

greater liberty which
has existed in our
industries, the
maintenance

of

The

and

growth

ideas
the

has

also

free

maintenance
and
of

competition.

competition

been

of

promoted

of

private

by

col¬

private

research, and
independent State

many

colleges and schools free from
domination

any

the Federal Gov¬

by

ernment.

for genius, daring,

in

busi¬

the
and

certainly is inclined

the

unions

great
and

work

by.

associations

oppres¬

the

in

to

done

insisting

on

with
came

each

other

until

constantly
in

the

best

to be accepted and led on to

greater

development

science,.in .agriculture, in„ in¬




the

Federal

the

states, for
powers
between

of

danger

a

which

we

never

have faced before. Big
government
has constantly increased in size

the

and

taxes

run

cessive expansion of credit which
in

times

basis

very

has

past

which

on

free

a

30%

of

the

people's

econ¬

third

of

that

national

income.

pression

rest.

not

which their work

rewards to

civilization becomes
more
complex, it be¬

as our

and

more

and

more

comes

Frankly, I do not

believe that

entitles them.

Also,

ments 7 or 8%.

more

necessary

people
the

of

excess

about

people's income, if

desire to continue
The

taxation

25%

have to have government

tremendous

different distribution

a

of

the

by

a

the

see

words

a

pictures

required

aviation,

board

government

new

a

have to

we

series of regulations if there

is to be any safety in the air. The
more

comes,

complicated
the more

our

life

necessary

be¬

is

it

to reconcile the different freedoms

different people.

of

traffic

bile

Our automo¬

requires

more

and

free

system to those who have
chosen to make the most of that

more

liberty.

main purpose behind the law must

But

liberty is not license, and
faire. All through

it is not laissez

red

and

always

be

to

much freedom

lights.

green

But in all of this

regulation, the

maintain just as
is possible under

as

history men have warned that lib¬ the
complicated
conditions
of
modern life, and to prevent the
erty,
while
necessary,
can
be
dangerous.
"Oh liberty, liberty, constant tendency of individuals
how many crimes are
committed to try to achieve special privilege
in thy name?" Milton said: "Li¬ and
special
power.
Our
laws
cense

others.
ford
or

to

the liberty of
Today, it seems to me, we face
Government
cannot
af¬ the greatest danger to liberty that
allow complete
freedom, this nation has ever faced. As we
upon

freedom itself would
disappear.

Government must insure
justice under law, or no one
be free to pursue his own
against the reckless and
and

unprincipled.

must assure

between

see

would

nation

how,

as

selfish

through history,
and

over

has

established

and

over

over

we can

again

over

a

freedom;

again, it has

lost that freedom. The Greek cities

because

if

Republic into
dle

enjoy all the privi¬ by

others

how

Government turned into tyrannies, the Roman

individuals,

and

look back

life

reasonable equality

a

certain people

leges

equal

do

not

Ages

an

cities

kings

and

enjoy freedom

empire, the Mid¬
were

taken

emperors.

lost

was

over

Usually

because

the

those

a

negative

program

continuous

but

legislative

requires
and

ex-

Our

Soviet

Thus people found that if there
danger
were

no
government
interven¬
tion to maintain freedom of com¬

tion of

petition,

to

olized
one

an

else

some

company

entire
was

monop¬

industry and

free

to

enter

no

into

greatest danger from out¬

side of the

of

it is also

a

country today is from

Russia.

a

many.

a

It

is

not

only

a

military invasion,

but
danger of the. infiltra¬

philosophy which appeals
We

are

meeting it with

tremendous program of

military
expansion, of alliances with other

balance

really

we

becomes

bur¬

so

almost impos¬

the

budget,

and

which

de¬

stroys the whole basis of the

sys¬

tem

inflation

an

which

free economy and
rewards and incentives are based.
on

The

put on the air.

are

So in civil

and

and

to

burden

a

business

on

great that there is
to go

men

start

all

into

of

concerns

no

those

from

is

small

which

business

Small business
ideas

new
new

really
time

and

methods

new

against

avoid

mean

no

up

to

meet

in

economic

knows how .to

one

markets.

In

wage

how the Board has

see

utterly unable to maintain
formula for the control of

any

Furthermore, even if they
worked, price controls defeat their
own
purpose.
If prices are held
down, it tends to increase demand
and

decrease supply; whereas the

method of meeting

proper

situation

is

decrease

to

price

a

demand

and increase

supply. If, in time of
it is impossible to prevent a

war,

tremendous
to

have

deficit

then

have

we

price controls

simoly to
up the process of inflation,
although
they
cannot
prevent
slow

ultimate

some

inflation.

controls also work

of

under the

war

tional

Price

better in

time

of na¬
believe the

pressure

patriotism.

I

Eisenhower Administration is

en¬

titled to great credit for removing
all

controls, and there
attempt

no

controls.
are

to

should be
standby

impose

Price and wage controls

part of

no

a

They

free system.

utterly destroy a free econ¬
omy. Yet people have come grad¬
ually to accept them simply be¬
can

cause

they

there

is

to have

price

have

used

been

natural

a

human

and

desire

somebody hold down the

articles which I
if price and

those

of

have

to

wage

controls become a perma¬
of our economic system,

buy.

But

nent part

it

the end. I believe, of the

means

which will cure thd
which
might
result
temporarily from high prices.

very progress

hardships

Government in Business
We

fort

to

„

.

ef¬

an

the Federal Governs

put

actual

the

into

ment

with

also faced

are

conduct

of

of direct so-'
cialism which has gone so far in
business,

process

a

England.
However, government
activity may be justified in par¬
ticular emergencies, and in fields
where

only the government can
hope to operate.
But certainly
experience,
as
well as theory,
leads to the conclusion that there
is

freedom

little

new

ideas in

ducted

We

an

Federal

the

activities

or

Govern¬
certainly

minimum.

a

also

see

tend

initiative

or

activity long con¬

an

by government.
operation should

be held to

the increase in

production which is

strong

black
we

perhaps
is

really

wages.

with

and

control.

tendency

it

prices to

conditions,

been

If

any

increase

built

energy

such

except

war.

ment

concerns

is

process

by

work,
of

large

our

industries have always been
up.

so

incentive to
business and

new

down

Furthermore, price control doesn't

of

free economy.

a

densome that it is
sible

improvement

bogged

we can
impose on the
burden of total govern¬

a

in

ment

creates

the

a

Certainly a de¬ That means that the Federal Gov¬
only brings great ernment is conducting over 28%
of the total
activity of the people
hardship, but limits seriously the
of this
country and other govern¬
liberty of millions of people and
must

omy

regula¬
made
by
different elements of the
tion through the FCC in order
popula¬
tion.
But certainly it cannot be that anyone may be able to hear
that

and

than

more

relative

contributions

over

income

the government spending

destroyed

exceedingly burdensome,

eC"+"'A Punorvjciori.

competed

and

powerful people, and keeping the much freedom as possible with¬
distribution
out infringing on others, as in the
of
wealth
just
as
equal as possible, allowing for the field of radio and television. We

ideas in every field of intellectual
have

between

powers

income

units

a

a

ideas

of

against the
may result from a 25%. When we add to that about
completely free market.
In the 7 or 8% for state and local gov¬
field of inflation also government ernment, we find that the total
has to step in to prevent the ex¬ tax burden today is approximately

by

agricul¬

economic

ability and

Those

rea¬

occur,

have
government regulation
fair share of the to
product
going to less which will permit all to enjoy as

obtaining

national

United States has been to permit
a tremendous
development of new
life.

Constitution^the

we

injustices that

the

one

can

privileges, the liberty of people surrendered powers they
these others is seriously curtailed had
enjoyed perhaps because of
the willingness to risk what one
or
destroyed. In many cases, we some temporary emergency, with¬
already may possess, in return for must have
affirmative government out realizing how important it was
greater gains.
action to preserve
liberty. And so to retain that freedom and how
The result of this liberty in the the preservation of
liberty is not difficult it was to regain it.

ness

an

reason

balances

small

as

thinks

long

a

to

our

of

power

and

television, better education, better

sion

entrenching

right

have in

law is face

wage

which he

the

to choose his

man

checks

these

cupation and work in the field to

every

means

the

disadvantage in deal¬ Government
powerful union.
In the division

they mean, when they say should be drawn by men of ability
liberty.". Obviously, no man can and good will in such a way as to
enjoy complete liberty without preserve the essentials of freedom.

Liberty

against the excessive

arbitrary government. The

recreation.

equipment, more electric
service, more automobiles, radio,

..^yhich protects the independence
©f our cities, our schools and our

themselves

disadvan¬

realized that the greatest task they
had
was
to
protect the people

principally in un¬ and in power. Twenty years ago
organized industry. The support the Federal Government took 6%
of farm prices is based again on of the people's income. Today they
the protection of a large group of are spending 28% of the people's

home

doctrine

states

and

men.

that

means

product, but out of the tremen¬
dous increase in the total
product
which our people have been
able
to bring about.
And that gross
product is the result of the
liberty
which we have
enjoyed and the
reward and incentive
given

the

big

and

That

create

the absolute necessity of main¬
taining the doctrine
of states'
rights. Not only are the rights of

from

comes

at a time, and son for the often inefficient or¬
employer or an ganization, and for the division

union
a

with a
words,

of

governments. That is the basis for

country

freedom

one

other

that

the

local

and

this

to

body in this country on the aver¬
age has a standard of living two

person.

to

provement in this country over
other countries has not arisen
out

maintain

first

a

with

small

be at

freedom

state

Act

could

men

a

individual
not

and

we

dealing

of

threat

second

trial

control

laws government itself. Our ancestors,
and
the when they established this Nation,

Act

be at

employer who

im¬

of

This

Freedom

labor

the Taft-Hartley Act later. These
laws were enacted so that work¬

denied

unless

Wagner

found

we

have

Norris-LaGuardia

West. We simply do not have real

independence

own

laws were the Executive and Congress and
passed to eliminate special privi¬ the Judiciary, was the vital need
lege with power so excessive that of keeping anyone from assuming
it destroyed the liberty of other arbitrary
power.
But today
we

more

tural

kinds

things

person,

the

tage

productivity

or

relations,
to

necessary

men

goods

more

management
like

the

and

in¬

part. Not
danger from outside,

To

Labor Laws

it

gradually

two

many

viously

draftt! regulations
in

as

workman

duced

No

have

produces

farmer.

dispute

different

his

the

and

—

has

—

increase

times

Furthermore, I don't believe that
anyone
has the
knowldege
to

we

agriculture,

American farmer

ferent from what the people want.

all 'the

manufacture, dis¬

tribution,

come

standards

By the development of

methods in

new

leges

tions

material

of

provement
of living.

our

Big Government, Another Threat
Must Have

govern¬

most extraordinary effect
liberty has been in the im¬

our

also

and

in

on

which

So, also, in the field of labor-

Tne
of

consequently
the
regulations he attempts to
make, amount to tyranny in many
communities where they are dif¬
opinion

education,

nations, progaganda and

filtration

competition in this only is it a
prevented the stag¬ but the size of the program re¬
we
see
in English quired to meet that danger is so
industry, as much as the Sherman great as to threaten liberty itself
Anti-Trust Law, and the other here at home. '
laws which support it.

ment.

Washington is responsive to local
public

in

free

and

nation

Free Economy

dustry,

new

real

country

Our Problem—Preservation

Of Liberty and

a

Probably nothing has main¬

Thursday, February 26, 1953

i.

.

attempt to ex¬
Government's

health,

welfare,

over

housing and'other services which
Also, a free economy has profited have always been provided by lo¬
from hundreds of private chari¬ cal government and private in¬
table institutions, hospitals, uni¬ dustry. I have sympathy with the
versities, all entirely free from effort to extend Federal assistance
so

necessary.

the

domination

in these fields to

and

free

munities,

and

new

of
government
introduce new ideas

to

methods.

Taxation

is

so

be based

poorer com¬

our

it should

but certainly

the need of those who

on

unable

with our
and
more
to government for support, maintain a reasonably decent life
which in turn increases the fur¬ for their families and particularly
heavy

that

institutions

ther

all

are

of

turning

activity and
of

ation

these

and

and

tax¬

power

At

government.

point

this

burden

great

that

there

private

more

some

becomes

is

a

so

constant

spiral of further government ac¬
tivity and we find it just as easy
to socialize

a

faced

at

country through the
expenditure of money as by direct
taking over of industry. We are
also

the

same

time

by

are

their

to

extend

the

into

up

activity

It

children.

unwise

the

keep

economic

strenuous

for

to

action

welfare

seems

federal

use

of

services

most

funds

to

government
for

which

great bulk of the people are

able to pay on a

business basis.
The greatest single force today
building up the power and spend¬
ing of the Federal Government is
the tremendous scope of our mili¬

direct grants of power to govern¬
ment which
then undertakes to

tary and foreign aid programs. It
can
only be said that these pro¬

conduct business

grams

itself, or to regu¬
private indus¬

late to death those

tries which still continue.

The ex>

cessive regulation of railroads has

prevented any new money being
invested^Tn railroad stocks for

involves

the

government

regulatiiig billions of transactions
which occur every day in
the
United States.
to

go

proval

Businessmen

to

Washington to
of the purchase

machinery
new

must be eliminated. I
Vlieve the Eisenhower Adminis¬
tration is inspired with a deter¬

seen recently the
impose price and wage

controls) to prevent inflation, and
that

cent of waste and ex¬

every

travagance

to

these

make

econo¬

mies, different from anything we
at¬ have seen in the past 20 years.

h^ave

tempt tb

and

must be held to the mini¬
required for national safety

mination

many years.

We

mum

or

methods.

the

trying

have

get
of

ap¬
new

out

There

to

many

field

of free¬

giving great concern

people.

It

is

felt

that

investigation of Congress is
excessive in trying to ferret out
the existence of communism and
the

being extended to
those who are
left-wing
socialism

is in danger of
mere

attack

of favoring

This whole indus¬

another

is

dom which is

Tt«h ivi V*

a
~

upon
■-^*1

rvi- —l'rtft

—

Volume 177

Number 5198

...

The Commercial and Financial Chronicle

.

(925)
with

Russia.

this

fear

Personally, I think

is

greatly

Continued from page 4

exaggerated.

;

.

•,«

.

*

.

•

.

SS'Z

freedonT of tlSs countrv
tiwinp 4o meet the Mtack of

TUa Uhv.U

in

verv

ItlG WOIlU LCDItOltllC UUtlOOK

-

^

mm-

munism

from

reason

why

Russia.

I

see

Congressional

and the

no

beginning of

peaceful

com-

era.

•

VWiWVH

.

tothfahcnhn^fX1'1 "hV^jh!
11 is als0 quite
that mai" Sh'°ng in terms of ltt b,,uying
fecLthaLmelia?e Cramunfete if fare will witness large-scale-war-.1858
<? Simdi^rto^
Communists it
beyond the
scope
of the ward "end in commodity pi ices
tact

that

they

me

are

Communists.

are

I

know

of

Korpan

civil

no

such

right infringed upon by
publicity,
particularly
in

fields

infiltrated

of

for

the

^

field.

But I see no particular purin examining the view of a
few individual professors if
they
are
not part of an organization

spread

of

.

com-

question

should

jobs

be

whether

dismissed

after

the

been

is
is

entirely different

of

.

T

see

of

up

.

should

much

^0^1^that
be

aided

continue

gov-

to

ize

em-

by

or

As

teach doctrine
and
*

will be

S

an important factor in the

Western Eurone

be '

SK

Yet

by the United States

to

Western

ad3ustment of this year's interna- Europe will also continue

Bonal balance
-

vidual

CQmmodities

at

and

of payments.

* d

'
International trade will remain
■

,

on

an

expanding scale,

ff

.

,

+1

.

41

will

be

ad-

a

considerable

United
united

Nai\a-

our

which

result

a

tinued

it

win have

we

high

becom

ma

level

of

Qf defense materials.

a

con.

production

Defense sup--

Would

process

be

more

difficult for foreign countries than
Trnuprj
Q+atpc:
Mn<?t
of
the U»ited states.
Most of
.

.,

countrv

"

dependent on in-

trade

Tbis

y;

than

our

own

anDlies narticularlv

applies particularly
to Western Europe, as well as to
Latin - American countries whose
well-being at-present is largely
derived from production and exports of a few basic commodities,
Many Western European states,

not°usto« Slat* tob^to'airead ^nd [:>''es pr°bab'V w''" be
,

Zn ^n ^nn.tw/r vLi

justed

Formosa }hera are
ternah°nal

in

country to organblockade against Communist

a

china

doubtful whether anybody
to be fired from a job in

Is

11 is
Na

Chinese

bv .me
oy the

7:1U ue amea

tlons

*u

why the

the

Government

on

ploy people with Communist symeffective
pathies On the other hand it seems

mtoe

fense supplies will probably

.

{o'p^o^r^her^^reas
LU pruvuKe oiner
ivoreas.

problem
problem,

u

reason

no

ernment

ought

possi-

a

i

.

ceSyTep'endfvery muVon "o^d

me

stepping

a

Thig

their connections

certainly depends very
the particular case.

to

ira-

an

coming
months.
On
the
other
counwould be preceded by a depresinternational political difficul- hand, it will deteriorate for mos£
war and sj0n, which would raise the buy- beS- This applies particularly to Latin-American countries,
they will most likely make ar- ing power of the dollar.
those areas which held the main
Exports from this country in.
rangements with Peking to con-

their

has

aware

I

be

^F*es to extend the cold

men

from

public

made
an

will

wni^f^abW^e^reflte^^East edpartlSv^t Gthe"texheme^,of,

be expected in the near
However, prices for indi-

cannot
future.

production

We may even expect that vari- Portant sustaining factor of the
ous Washington agencies will pay American economic trend. .De-

3lso encourage their satellite

munism,
The

1hn„p

The continued high level
of de-

tense

It is jnihkeiy that the econohlgb leyel on a world-wide mies of the Western world will be
fluctua- ?caIe- There has been an increase supported by foreign dollar aid
W1
e
a
Russia ^ons may occur. The prevailing ln exP°rts from countries which and by government spending as
aie Probably unjustified.
over-rail trend wall favor the dol- depended on dollar aid during the much
as they were
during ^the
^ seems that the key men in jar jn
case
of a major de^ ^ve years. This has also been early postwar years,
f1
want war now. pression, there would probably be
^f.ue
shipments of supplies to
The current world price trend
I hey d like to continue their con- SOme inflationary injections into western Europe, as well as to raw favors the
American dollar.
In—
^u. s through cold wars, without ^he sick economy. This would material-producing countries, such ternational trade will
improve for
avia^
send
ssiaJ3, armies precipitate a new upward move- as Indonesia.
Western
industrial
countries
ira
irR° foreign countries. They will ment in prices. Such a movement
Some areas will suffer because
believe

pose

the

nf

£pijL^ 1 ®S

and television

promoting

fpaA.

Thp

^r.^fsVre,°? Communist Ch i n a

purpose

affecting public opinion like
teaching profession, the movie
field, the publishing

the

War

com-"

a

speciai attention to such

long-term war," the outlook would be quite
...different. The dollar would re-

a

dinarily would not be in
petitive position.
,v'

41

intended

hlow

over
...

„

under

the

.

eoveriK

shifted, to men expect that the United States
?ome ext®nt>to tbe ' ar East, part- will be forced to pump $5 to $10
ly at th-5 ®xp!>,nfe «f Western billion into Western Europe perEurope.

.

,

a^C^mmunist

Yet, military aid by the petually, in older to fill the dollar

^u^tho^whn Ul?1i1ted States to Western Europe SaP ai}d help them finance deficitnre^ieot?nt ilfve^i^nn cee^ wl11' for the time being' remain spending economies. British nato
to he dS fSpS
£n a SC
' ^hich on a monthly tional _economic planners h a v e
state

tn

me

that* does
that

pvict
exist.

nnt
not

Thpv

may

ls

rial
not

They

50% pointed out that the United States

than

more

greater than what

given dur-

was

ing the sec0nd half °f 1952'

"

is

would have to
0f

the burden

earry

s^a^e ,°f trade wlth China,

espe-

1953 wjp be lower than

C1Nev"thflessgthiswill not pie- alth?ugh
1Neverineiess, tms will
marked.
XTaUonartTad^
°nna^"^ \^e ^during On the
vent

1952

>

flom

fth

1953

'

L

in

the decline wil1 not b*

not pre

'

.

international

industrial

fo

romneti-

lniernall0nal competi-

.

t

.

goods

commodities

0

well

as

in-

more

time

rfnee

the

thls country Wlll
...

.

"The

'ess

should

f

th

British

Commonwealth

forward witb the de-

postwar

materials

raw

that

America

is

^0 finance this development
0ther forms of investment or con-

should

be

still

further

cut down> but a real effort should
also

be

made

capital

for

to attract American

thesp

schemes

There

will have

International trade will remain
a high level on a world-wide

on

scale.

^^0*

sumption

This

year.

favorable influence on'the ad^'
3"stment of this year's international balancc of payments.

a

yelopment of production of those
likeJy to need in increasing vol-

favor-

compare

iq^2

y
Private export of capital will
be heater in 1953 than during;
any

^"e
banker <'

other hand, imports into

While

the

United

States'

in world trade will decline

theless

the

never~

of'foreign

proportion

trade to total American trade
continue on a high level
a
..'

u

•

!nte™ati0"al
' estimated that Great Britain, for justments either Tm0mirmalal is reason to hope that specific the'woX togest sunnlie?
by creating suf- projects of this
sort, and specific
sends
supplier ot
ckm
t
S P.ShnHov examPle. may receive $45 million .ticient markets for dollar earn- measures to this end, may, in fact, caoiM g°"ds'
Capltal
-.Vt ;.",
onhJinl.
monthly during the first half of
from the export goods of be under ardent discussion at the
.Prospects can hardly be qonI'
this country have a right to criti- 1953 °gainst $30 m'Hion monthly Western Europe or through dollar Commonwealth Conference."
str.udd as unfavorable. Unfortuduri,lg 1952.
It is unlikely, that aid to these countries.
eize
Xhe United States' share in aately> Part of th.e favorable
Communists, and even criti- on an annuai
outT
basis, the world

2

.

,

..

The

^rkrp thena from the posidrive ^hp^1 frnm'thA^nd

mignt

tions
tor

where

they

able to

are

frpnupiuiv
frequently

ottice

that it

111-

position

my

^in't mVifp .ee
quite ^P

T
I don t

others
such

should

and

do

by
^

a

during

was

aid

the

and

by

much

as

early

as

postwar

H'
**
Many Upsetting v
Factors
Prospect

from

immune

universuyr ijwould

tt

upsetting
caned

factors.

the

' They

beginning of

many

be

may

inter-

an

n

I believe that

dB.y is

one

difficult
ferent

with

great task to-

of keeping this country
fi*edom. It is a

job to reconcile
freedoms

each

life

our

complex.

which

other,

becomes

It

the

dif-

conflict

particularly
and

more

takes

as

more

brains

andla

careful discrimination to enact the

•.right kind

of

statutes

and

adopt

the right kind of policies.
I believe this country believes in liberalism.
I
believe
liberalism

the

means

maintenance of

an

es-

sential

freedom.

it

be necessary to limit this

may

activity
work

or

that,

out

ernment

the

No

matter

we can

still,
for

program

action,

do

in

it

how

such

If

we

go on

fare.

I

no

can

reason

see

why the
standards of living of this country
should

not

no

reason

continue

increase

to

at the cumulative rate of 2 to 3%
a

doubling

year,

as
they have
hundred years.

to

the

people
all

every

40 .years

during the past
There is no limit

capacity of the American
to produce, and bring to

the

citizens

of

this

fortunate

the standards of living
which we regard as essential for
true progress.
Let us keep constantly before our eyes the fact
country

that

these

are
the
blessings
They can only be
tained by eternal vigilance.

liberty.




economies and the national

omies

have changed
ing the last decade.

of

Inflationary

be considered

econ-

greatly dur-

policies

only

can

artificial stimuli,

as

mal pains of world

nor-

economic ad-

justments. The greater the inflationary doses, the more difficult
is the

process of

adjustment there-

after.
.

.

f

n

n

A

5

.

Aa

important

world

trade

nf

fhp

Hnllar

fprms

in

terms

cbange

and

of

thiw

its

in

the prob-

consider

in

the

uuuvq-

event of

the

a

dollar

^d™

buying

weaken

in

new

of

the

war,

in

It will
rate

Df

exchange
for
currencies
of
countries which are "neutral" and
for war profiteers. It will decline

sharply in its gold value in terms
of free market gold

prices.

ever, the official price
will not be changed

for

during

of

Western

How-

gold
war-

Rpigiiim

period,

case

or

of

a

even

prevailed

during the
period.

Now
more

we

are

normal

excess

situation

early

post-

returning

status in

the

that

means

share

to

a

world

in

the

Euro-

save

sev-

0f millions of dol-

during the first half of 1953
import contracts for

terials

of

raw

these

ma-

continued

to

decline.

The

ratio

be

f0

stepped up during the first

half of this year.
'

First World War and which has
a°t yet as come to an end. The

nro^urp

P™™

nf

.

for

and

and

Possibly,

.fates are
prob-

it

as

is

exports

was

even

°n the other hand>
that

machine

industrial

sur-

builders

had

on

the

competition

from

prolonged peace
during a "cold

in

is unlikely
the

!?es ?

past

„;„n

an

10

years.

„nd

pntprnri„„

p
which will enable American business

to

oyer

"

.

n

.

"

The First Boston Corp. heads
of

group

investment

a

bankers

making public offering today (Feb.
26) of a new issue of $17,000,000
Maine

Central

RR.

Co., first

mortgage and
collateral
bonds,,
5Vs% series, due 1978, at'a pricC'
of 99%
group

and accrued interest,. The
on

^bid

Feb

25

submitted

Tonds

for

which

the*

wSa

offered at competitive sale and is
subiprt

L®te

group

in'

manager

recepfion

for

tn

an-

the aiternoon

reported
tbe

gtKKl

a

bonds 'whiclt

moving out steadily

wew

&

-

Proceeds of the issue, together
with other funds of the

company,

will be applied to the redemption!
of all first mortgage and collateral
bonds, series B, due Dec. 1, 1954;
to the redemption of all of thes
general mortgage bonds, series A,
due Dec. 1, 1960 and to the deposit of funds for payment of the

compete where

.

they

or-

j

operating

revenues

the company for 1952 totaled

of

$26,-

323,602 and income available for
fixed
cbarges
was
$2,771,781.
Fixed

chargeg

amounted

to

$1>^

dxcban^e difficulties and direct

210,902. For 1951, income avail—

Summary

able for {ixed charges was $2,681,303 and fixed charges were $1,-

237,517.

The

comparatively

business

favorable

trend

in this
during 1953, although it
They will might tend lower late in the year,

active interest in for-

c,lhcidi.rip„

foreign to bridge

United barter deals.

.wlU W ,mo';e attention to general
foreign markets than-they have country
?rs

the

OflSTS

.

|f|3|ng GSIltfSl BOItdS

win

greater, .otherwise insurmountable foreign

unlikely that they will drop heavMa"y American manufactur-

in

A

^ternatioLT^pemton'"will "r'
international
Railway

States will be as great in 1953 as
'^ey vr'eI'eu
,J952, although it is

ais0 take

•

world market immediately after Washington County Railway Co.
the war except with regard to first mortgage bonds due Jan. 1,

S°?ds into tbe United
up

of

Practical monopoly which domestic

Jp[t ^ AmPrir^
* Dtpf™^
being stepped

share

goods and will remain in this position, although it will lose the

'

rnmnetition

creasing

Plas production available for exports. America has become the
world's largest supplier of capital

.

IFSI OOSIOffl

■■

trade is increasing. This is a long-., rpofferine
term trend which began with the
al

agri-

gecond half of 1952 and will have

C|rA| DAa|ah
■

trade is

United States has become increascuitUral products. These purchases ingly dependent on foreign raw
bad been minimized during the materials and it also has an inespecially

,is cJos^y ^ied in witji ^thehlgl? level of defense spending
as conIlnue_d American aidl.
® are, qil!^eu c,1^tant froih
at wblcb .the free world>
na.i!°"a] economies will be permitted to stand on their owii .feed,
^L"

world

refer

will be able to

eign subs diar es

time.
in the

with

This

e^?ope,^^ particulariy

n

eral hundreds

on

I

.

re-

countries

goods.

be as great in 1953

suffer

its

the

the

of

power.

terms

the

supplier of the world, outof

industrial

war

during

were

1953. In contrast, the share of
Britain, West Germany and foreign trade in total American

Qreat

1952
will

would

we

ex-

of

terms

on

greatly

when

able tbat the total volume of be manifold, from direct price
imports into the United States will competition to the use of various

nnwpr-

rate

dollar

Greater

United

hnvin?

etc.

based

Competition in Foreign Trade

of gold

terms of its

a]s0

of

(3)

dXfprice
jn tbe

ik

nf

in

main

side

rose

war

particu- went from 27.1% in 1947 to 22.8%
larly t0 the decline in agricultural in
1950 to 22.2% in 1951 and
commodity prices. As a result, the roughly to about 21% in 1952. It
inHnQtrial
exnort
countries
of nisy Approximate about 30%
in

the

in

the
is

jf iaead4ablee t°0

nHn

vaiue

position

Thp

factor

sJatef, in particular

(2)

deflated

a

countries.

pean

,

and

economy

tariffs,

also

were

cuts

trade

last

declining. It will remain
have British sterling from a criti- at a
higher level than during any
cal stage.
prewar period, but as a result of
Some
trends
in
the
United the
recovery
and
expansion in
states, especially in foreign trade, foreign economies, the United
will be helpful to the foreign States' share in world trade has

lrend oi Dollar Is Important

valnp

that

ed

i

T

drastic

as

States

plans

,

T

a

United

lars

which temporarily avoid the

a

keep liberty alive I
why we should not
expanding in material wel-

see

pre-

sdjustments of nstionsl
forces of production and trade because
the stiuctures of the world

gov-

that it maintains the very
maximum of liberty.
,

They have

economy.

vented

as we

manner

major maladjustments in the

world

-

the

well

as

world

the

States, if necessary stimulated by economy.
This
inflationary policies. It is expect- United
States'

^Cnrn^n nkt
P^Twa^pprl^ nat!°,na! e c 0 n 0 m 1 ^ adjustment
that^wT<ftparhfn^ Zmini
^ necessary becaase five
*nd hnvin^ lomp Iffpp^^n th^ yearS °I war and another five
development ofThe thouehtof the years of government-directed and
^inFc
thought of the subsidized economies have resultstudents.
m

butions

perpetual prosperity in^^the United

*

in

Consequently there will be

ed

which

These

m

or

criticism^ and actipnol must
of

dollar

years>

say as a memoer of, the .Board of
lrustees

foreiSn

government spending

tneir

why professors

be

the economies of the

means

Western world, will be supported

an*

mv
aad
my
enemies have not hesitated to lie

about

plans
proposed
by
Commonwealth leaders,
provide for a strong convertible sterling currency, have
been based on America's contrinew

economy, and again let me repeat British

The

principal

main

line

of

the

^ P»"«Pal mam, nne ot me
Maine Lentral runs^between rort
laneI and Vanceboro a distance «
approximately 250 miles. A total

shouId hive/ constructive mflu- of approximately 980 miles of line
ence 0,1 the free world economies.
The
evident

upturn
since

in

world

1951-52

activity

should

tend during most of 1953.

ex-

is operated in Maine, New Hampcbi
.

Vermont

'

wick.

and

New

Bruns-

'
,

t

42

The Commercial aiid Financial Chronicle..

(926)

The

Indications of Current
Business

following statistical tabulations

latest week
week

Activity

or

month available..?

or

month ended

Latest

Previous

Month

steel

Equivalent
Steel

operations

W"»k

Week

Ag<-

1

§2,244,000

Residual fuel

ASSOCIATION

Feb. 14

(bbls.)

average

Feb. 14
-Feb. 14

OF

(bbls.)

ENGINEERING

of

(17,017.000

6,834,000

23,552,000

23,232,000

East

6,591,000

7,081,000

2,684,000

2,791,000

10,178,000

10,903,000

10.498,000

14

8,773,000

8,808,000

9,023,000

9,178,000

14

154,469,000

150,087,000

21,815,000

152,493,000
22,308,000

143,492,000

14

24,932,000

78,152,000

88,773,000

45,807,000

47,745,000

690,744

705,479

671,765

648,987

686,147

$267,788,000

$229,078,000

$222,118,000

New

CONSTRUCTION

(no. of cars)—Feb. 14

U.

Private

'eb. 19

182,565,000

122,994,000

62,649,000

106,084,000

coke

77,809,000

28,256,000

31,622,000

28,275,000

8,350,000

*8,570,000

9,560,000

10,595,000

527,000

652.000

703,000

680,000

118,700

*117,700

112,200

141,900

SYSTEM—1947-49

AVERAGE

=

Feb. 14

92

88

92

89

100

INDUSTRIAL)

DUN

—

8,147,461

8,196,186

200

176

Feb. 19

4.376C

•1.376c

4.376c

(per gross ton)-

:eb. 17

$55.26

$55.26

$55.26

$52.72

-'eb. 17

$43.67

$42.00

$42.00

$42.00

(per

ton)

gross

(E.

M.

&

J.

Straits tin
Lead

^

(East St. Louis)

at

24.200c

24.200c

34.725c

34.325c

27.425c

121.500c

121.500c

121.500c

121.500c

13.500c

13.500c

14.000c

) 9.000c

13.300c

13.300c

13.800c

18.800c

11.500C

11.500c

12.500c

19.500c

Feb. 24

94.89

95.60

95.90

Aa
Baa

Received

Utilities Group
Industrials Group

U. S.

BOND

YIELD

1
DAILY AVERAGES:

108.16

108.16

108.70

109.79

Crude

Stocks

112.37

114.24

110.88

112.75

Produced

107.27

107.44

108.16

108.88

Shipped

103.47

103.47

103.80

103.64

106.04

106.04

106.21

100.21

107.62

107.62

108.70

109.42

110.88

110.88

111.25

113.70

*1

Refined

D.

2.81

.348

3.27

327
3.07

$8-

'eb. 24

3.15

3.15

3.12

3.31

3.27

3.54

3.52

MOODY'S

Group

INDEX

3.39

3.39

3.38

3.30

3.24

3.12

3.12

3.10

410.4

405.3

"^eb. 14

217,420

331.971

239,772

Linters

(tons)

7eb. 14

245,665

238,012

244.187

95

94

95

OIL,

PAINT

1949

AND

DRUG

AVERAGE

=

of

period

REPORTER

-Feb. 14

PRICE

DEALERS

545,961

514,273

EXCHANGE
Odd-lot sales

SPECIALISTS

SECURITIES

—

by dealers

Number

of

of

N.

Y.

Number

of

107.90

107.89

35.698

31,883

*eb.

7

1.036.903

936,S26

1,074,494

$44,249,552

$40,936,217

$46,713,904

Total

958,859

7

$43,568,177

Feb.

7

29,128

31,059

32,700

166

137

147

30,893

28,991

32,553

26,303

7

816,983

505,070

737,406

879,779

-

sales

Feb.

7

5 930

4,295

4,906

Feb.

7

873.849

812,668

900,164

Feb.

7

$35,217,630

$32,267,391

$37,682,687

$31,373,509

Dollar value

sales

Feb.

7

sales

Feb.

I" Feb.
Feb.

266,590

219.520

285,170

of

shares

Round-lot

Short

sales

7

266",590

2T9I520

2~85~,170

7

380,960

360,340

411,750

195JL 80

52,154

?

36,235

149,459-*

152,086

145,915

.

279,398

198,918

'

210,667

233,475

205,133

136,132
bales)

277,154

179,333

2,072

1,718

;

—

—

1,793'

}
;

2,222

31

2,402

1,725

1,254

•

10,988

8.843

8,089

*

4,325

—

2,302

4.697

4,131

>

2,180

2,535

3,162

;

*$275.8

$263.4

187.9

176.0

*184.4

172.6

(1,000 pounds)—

.—a

,

;

—

IN

THE UNITED

OF

STATES

COMMERCE)—Month

(in billions):
income

$279.2
180.4

labor

84.7

413,740

20.8

*32.9

31.0

3.8

3.7

income

3.4

4.6

income

dividends

4.6
*52.9

53.3

•

21.2

21.3

.

12.8

12.1

-

*255.7

240.7

-

269

—a

"

21.1

13.3

258.0

payments-

nonagricultural income

-

4.3

54.5

—

and

j

46.7

21.9

'

social

for

——

interest

*

77.5

*49.6

21.8

:

transfer

*83.5

49.9'

—

—

contributions

'j,

-

185.8

33.0

industries

Jan. 31

""

"Jan.

.1—— Jan.

sales

III
II

Total sales

transactions initiated

on

Total, purchases
Short sales

31

31

261,770

257,290

158,240

348,630

8,435,740

7,242.340

7,516,380

9,212,610

8,697,510

Total sales

,

7,499,630

277

I

101,100

1,034,970
194,520

685,170

648,940

665,170

866,030

836,090

784,170

766,270

198.700

163.600

13.000

5.600

10.500

'

31

201,010

203,730

173,700

11,100
240,610

31

211,510

216,730

179,300

302,710

248,717

386,211

NEW
=

SERIES

—

U.

S.

Jan. 31

53,550

60,648

17,880

31

300.152

279,087

222.475

Jan

31

353,702

339,727

240,353

Ton

233

428
——

RYS.

k,

1,361,750

1.164.237

1,330.131

I

DEPT

:

214.970

208,870

1,186.332

1.131,757

124,580
1,061,345

31

1,401,302

1,340,627

1,185,925

■*

Miscellaneous

1,699,702

.

253,310
1,520,647
1,773,957

a

^

Income

Commerce

II Feb.

All commodities other than farm and foods
547,000

^

109.5

*109.4

98.5

98.9

Other

100,1

17

105.2

"104.5

*103.9

17

97.4

*95.3

of

foreign

Feb. 17

crude

rt

112.8

§Based ortr

*112.7
new

annual

•

310

•

-

-

Net

fiked

from

314

238

233

$120,912579

$125,802,323

19,207.206
140,119,785

3.990,605

4.182,612
135,937.173

139,938.417

95,124,486

fixed charges

charges

16.904.771

133;582,742

income——a

97,446,935

104,832,157

18,350.471
144,152,794.

4,214.377

3,051.778
92,072,708

deductions
income

income

2,990,787

3,000.766

94.456,148

101,831.391

41.405,124

41,153.828

40.361.020

74,370,476

70,146,427

19,817.615

14,649.827

5,462,221

2,909.587

4,773,286

3.47

—_—

84,573,928
20,248,721

taxes

3.53

3.99

appropriations:

preferred

stock

_

ZINC
,

OXIDE

(BUREAU

capacity of 117,547,470 tons

OF MINES)—Month of

December:
(short

tons)

Shipments

(short

tonst-

Stocks at end of month

'

.

16,325

15,995

15.889

14,053

(short tons)

*

379"

318

221

137,573.347

7.

Ratio of income to fixed charges

.*97.9
112.8

-.291

326

$120,688,576

:—

a

Depreciation (way & structure & equipment)

On

109.8

'

.

Commission)—

I

Production

barrels

295
"

'

available for

after

Federal

17

177

309
——a

—

deductions

*' "

309

280

—

—

eggs

(Interstate

Total'Income

461,697

OF

Feb. 17

—

331

300

-

-

—

products

Other income

-

.

IIIII~Feb.
IIIIII Feb".

foods

195

238

300

—

;

339

206

i

On common stock—,

^

440

283

256

—1

r

railway' operating income

Dividend

products

412

268

-r

animals

Income

commodities




crops

Poultry and

.

Net

414,007

100):

^Includes

213

SELECTED INCOME ITEMS OF U. S. CLASS I

47,630

-

Commodity Group—

figure.

218

—

Meat
•'

419,572

^

(1947-49

:

253

——■

crops' —:.
Livestock and products

251,710

"""IIZIIII Jan

PRICES,

230

248

—

Oil-bearing,

244,760

sales

H"

257

I

Fruit
Truck

1,060,550

191.790

"jan.

"

—-

Total sales

>

257
247

——

:

—

Month of October:

~ZL——

sales

—

780,320

135.230

Jan. 31

Total sales

WHOLESALE

716,520

156,920

Jan. 31

Total round-lot transactions for account of
members
Total purchases
Other

*'

k

867,250

305

—

————

;

.

—

Tobacco

Jan. 31

_

-

AGRICUL¬

1941=109—As

'

"I"Jan.
"_[~Jan.

sales

Short

products

Feed grain and hay

initiated off the floor-

sales

Other

OF

INDEX

1

grain

Dairy

purchases

Short

farm

Food

9,561,240

7,674,620

Jan. 31

-

DEFT,

1909-Jfuly,

August,

—

Crops

the floor-

~

S.

FARMERS

15:

Cotton

Jan. 31

_

sales

Other transactions

—

BY

UnadjustedAll

_,

RECEIVED

of Dec.

_

Revised

4

154,920

,151,823
277,154

NUMBER —U.

-

*

v>r

148,533

31—

Dec.

TURE

TRANSACTIONS FOR ACCOUNT OF MEM¬
BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists in stocks in which
registeredTotal purchases
Jan. 31
Short sales
Jan. 31

Meats

48,669

-

...

'

personal

PRICES

EOUND-LOT

Processed

31—:

Grabbots, etc.

Total

Total

sales—

sales

Other

Farm

308,727

purchases by dealers—

Total sales

All

303,841

319,496

»

1,868

Personal

195,180

ROUND-LOT STOCK SALES ON THE NEW YORK
EXCHANGE AND ROUND-LOT STOCK
TRANSACTIONS
FOR ACCOUNT OF MEMBERS
(SHARES):

LABOR

348,802

306,797

-

Dec.

Other

TOTAL

Total

55,430

31

employee
insurance

7

sales

Other

118,578,000

144,420

317,680

Proprietors and rental income

Other

Other

182,865,000

66,397,000

*

Less

by dealers—

Short

Other

190,061,000

—

—

Government

729,589

Total

Dec.

(1,090-lb.

Service

7,817

sales

Number

279,881.000

,

Commodity producing industries—;
Distributing industries

187

7

Feb.

sales

7

short

Round-lot

445,493,000

Wage and salary receipts, totalTotal employer disbursement

26,490

Feb.
Feb.

sales

shares—Total

197,129,000

544,595,000

155,303

—

,

other

of

186,292,000
206,005,000

205,197,000

95,697,000

—

-1—a

(tons)

of December

34,010

36,946

Customers'

Number

188,505,000
231,827,000

198,895,000

31-

—

(.DEPARTMENT

short sales

sales

178,154,000
213,695,000

Dec.

PERSONAL INCOME

7

Customers'

Round-lot

652,542

1,880,613

213,966,000

Produced

112.40!

108.62

Feb.

shares—Total

598.443

719,410

Shipped

Feb.

value

Customers*

1,097,259
2,387,760

STOCK

Odd-lot purchases by dealers (customers' sales)—
Number of orders—Customers' total sales
Customers' other

31—

_<l_—

Fiber

Motes,

—

shares

Dollar

538,701

2,260,902

—

Produced

396,837

500,300

COMMISSION:

purchases)

orders

Number

ON

EXCHANGE

(customers'

of

—

(tons)

Dec.

Stocks
Feb. 20

AND

60,836*

PROD¬

Shipped

INDEX—

100

130,430

58,858

(running bales) —

Stocks

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT

Dec.

(tons)

Produced

87

end

SEED

(tons)

Shipped

214,477

^eb. 14

at

143,088

59,836

(pounds)

(tons)

Stocks

170,485

of

(tons)

100,269

(tons

.

434.4

Production

orders

83.192

113,965

125,133

period

of

*85,239

108,010

-

665,559

(pounds)

Produced

2.97

410.0

Percentage
Unfilled

324.5

.

Stocks

Hull

activity

end

(tons) Dec. 31

Shipped

3.20

eb. 24

.1

327.7

80,580
.

31——

Hulls—

3.38

3.30

Feb. 24

;

,

COMMODITY

24

eb. 24

NATIONAL PAPERBOARD ASSOCIATION:
Orders received (tons)

337.5

(tons)

Dec.

(pounds)

Shipped

-

,

2.94
3.02

'eb. 24

i,

:

1,467,399

Oil—

Produced

3.53

a

2,444,712

January:

COMMERCE—Month

mills

Consumption

3.23

3.54

Group

of

(pounds)

Produced

2.72

2.79

3.32

Industrials

623,900

2,177,391

tons)

;

(pounds)

Stocks

Stocks
2.86

peb. 24

*,-Baa"II—II——IIIZimZII—IZIIIIIIIII—IIIIIIIIIII 'eb'.
Railroad Group
Public Utilities

(net

6,755,400

6,131.500

355,895

Cake and Meal—

3.08

-■

month

COTTON

OF

(pounds)

111.81

110.34

—

_

of month

6,316,660
5,960,765

427,105

Oil—

111.62

—

Average corporate
Aa

6,690,649
6,263,544

at

AND

at

110.34

j
peb. 24

Government Bonds

5

Dec.:

ton's)

stock

(tons)

Feb. 24

Public

-MOODY'S

of

(tons)

Stocks

Feb. 24

-a

j Railroad Group

MINES)—Month

8

Seed—

Feb. 24

A

20

;

December:

Feb. 24

'

H

273,099

50

___*

(tons of 2,000 pounds)

SEED

Feb. 24

-

.

2,777

43,067

;

pounds)-,-

UCTS—DEPT.

'

4.

A.

Feb. 24

:

—

,

357,076

50

OF COMMODITIES
BRADSTREET,
INC.
(1935of January
"

copper

Feb. 24

Aaa

*

S.

2,000

Cotton

96.74

Feb. 24

Average corporate

:

tons)

(net

&

Crushed

Government Bonds

632,972

455,232

—

(tons of 2,000 pounds)

COTTON

MOODY'S BOND PRICES DAILY AVERAGES:
U. S.

498,^04

412,558

24.200c

35.125c

eb- 18

—

.

(New York) at
(St. Louis) at

Zinc

at—.

—

24.200c

Feb. 18

(New York)

Lead

'eb. 13
*eb'18
'eb-18
?eb- 18

-

tons).-

(net

■

464,526 "
"

tons)

—i

tons)-

INSTITUTE—For

In U.

of

i

(net

tons),

100)-—Month

=

Refined

QUOTATIONS):

Electrolytic copper—
Domestic refinery at
Export refinery at

America

(net

Refined (tons of 2,000 pounds)
Deliveries to customers—

4.131c

Pig iron

-

51,960

Central

OF

-

.

.

anthracite

PURCHASES

DUN

Crude

Feb. 17

24,712,989
234,580,076

Copper production in U. S. A.—

177

173

lb.)—

PRICES

$259,293,065

32,467,886

297,479,981

(net tons)

CONSUMER

COMPOSITE PRICES:

Scrap steel

$329,947,867

MINES)—

(net tons)

coke

COPPER

OF

'

(net

7,460,763

8,144,074

steel

METAL

43,384,750

28,765,075

Oven coke stocks at end

&

Finished

(per

80,467,638

277,703,233

Pennsylvania

(net

Beehive coke

—

veb. 21

AND

BRADSTREET, INC
IRON AGE

of

(BUREAU

1939

(in 000 kwh.)

(COMMERCIAL

Asia

Oven

INDEX—FEDERAL RESERVE

SALES

13,764,535

10,732,864

$306,468,308

j___

(BUREAU

and

Europe

COKE

EDISON ELECTRIC INSTITUTE:

Electric output

North

Production

(tons)

55,170,459

18.133,112
10,228,226

67,584,064

tons)'

To Africa

OF MINES):

(tons)

57,465.929

13,826,189

November:

To

59,910,000
37,601,000

Feb. 14

-

lignite (tons)

DEPARTMENT STORE

FAILURES

of

To

97,511,000

34,393,000

85,223,000
53,601,000

Feb. 14

BUREAU

S.

and

Pennsylvania anthracite
Beehive

81,403 000

reb. 19
Feb. 19

;
—.

(U.

States

exports

(net

124,607,000

Feb. 14

and municipal

Bituminous coal

$144,052,000

'"'eb. 19

Federal

46,156,306

69,480,585

,

City

To South America

construction

COAL OUTPUT

S.
To

veb. 19

Public construction
State

United

EXPORTS

U.

ENGINEERING

—

construction

S.

:

54,876,310

9,579,475

York

COAL

NEWS-RECORD:
Total

I

i.

28,998,528

46,688,770

a

Total

737,776

666,145

1

Central

44,485,198

29,368,857

38,602,000

081,750

$16,600,425

.1

63,797,755

35,213,438

.

Central

Month

of cars)

$15,610,040

49.495 805
—

Outside New York City

RAILROADS:

(number

—

Pacilic

62,191,000

45,954,000

Ago

Mountain

20,506,000

74,978,000

Year

Month

&

CITIES—Month

Central

West

2,400,000

10,582.000

INC.—215

DUN

—

Atlantic

Atlantic

South

21,715,000

24,037,000

2,703,000

14

VALUATION

Previous

$14,599,976

PERMIT

January:
England

South

6,356,250

6,524,000

Feb. 14

at

AMERICAN

freight loaded

6,521,850

/eb. 14
Feb. 14

(bbls.) at—

oil

6,544,500

Feb. 14

Revenue freight received from connections
CIVIL

2,097,000

Middle

Distillate fuel oil output (bbls.)_
Feb.
Residual fuel oil output (bbls.)
Feb.
Stocks at refineries, bulk terminals, in transit, in pipe lines—
Finished and unfinished gasoline (bbls.) at
Feb.
Kerosene (bbls.) at
Feb.

Revenue

2,240,000

BUILDING

101.0

New

gallons

Distillate fuel oil

*2,235,000

of that date:

are as

Month

99.4

(bbls. of

output—daily average

each)
Crude runs to stills—daily
Gasoline output (bbls.)
Kerosene output (bbls.)
42

Mar.

"99.1

INSTITUTE:

condensate

and

oil

§99.5

BRADSTREET,

AMERICAN PETROLEUM
Crude

1

(net tons)

of quotations,

cases

either for the

are

Latest

to—

ingots and castings

in

or,

A""-

—Mar.

(percent of capacity)

shown in first column

Year

AMERICAN IRON AND STEEL INSTITUTE:
Indicated

that date,

on

production and other figures for the

cover

Dates

Thursday, February 26, 1953

.

13.960

12,969

23,008

20.736

27.433

,

Number 5198

Volume 177

.

.

The Commercial and Financial Chronicle

.

(927)

Continued

from

the

and

resources

6

page

discovering

possibilities of
mines

new

are

neglected, to the detriment of the

There's No Shortage

Commodities in

oiiDollars or
Free Economy

a

help provide subsidies and taxed

tax would be almost automatic in

again

operation. The necessary imports
would be readily procurable. Con-

buy

we

.

.

subsidized

■

From time to time, some of
you

issue

a

before

essentially,

do

the

we

subsidy system for the mining
industry in lieu of a tariff, but the
danger here is not only the quesa

public is,

or

don t we tionable morality of
Wa"\a ,vi|?rous' healthy mining but also "that" it" will
mdustry? The answer is obviously lead to

concerned
concerned,

eign and conserve our own

vestige

we

in

—

Is Tsaid"'before
as i
saia
oeiore,

of

.

tariff

the
ine

protection

re-

the; ground, presumably. I wonder maining is now so low we can
what

happens .if other countries
accept the same philosophy and

decide in dt
to sit

thpir
their

nn

on

afford to dismiss it altogether. A new approach to our
nnsition
is
position
is
needed,
new
safeguards for our country s mineral
future. But before I outline a
even

own minpral
mineral

nwn

Who then sticks his
permits his produc-

deposits?

neck out and

tion to be used? I suppose we
,

u

.

have

would

to

T_

an

taxational_ Minerals and

simple suggestion, let

then

or,

organize

q

-

urhof

y

Metals our a

something ^mtlarly impressfve

hac

emphatically, yes. We need
gre£d jead and zjnc mining

industries

especially (a) for deand (b) as a wealth creat_

f

irtg

activity

1*.
our

for

t£

citizens.

If

control,
the

Q{ either of thege tw0 metals

our.

selves to supply our domestic in-

just

or

and

well

on

in

the

prices

J

well

changes

6

For my part, I see no distinction

immorality of going to

neighbor and demanding,

controls

your

say,

a

are

as

of

which

caused either

the

the

by

An

lnS property, or using government

provide

us

have

we

ReciDrocal

M
Ma-

International

an

nn

g

-

.

step

a

P.M.P.C.

The

tariffs

trade

Their

eliminated.

netrv

wnai was

independent

the

of

Re¬

authorizing unilateral
elimina tion of import duty on any
refined

form

„.

material, and that such
Procedures

for

in

This

ciaed

the

might

not clear.

"in
in

does
uuca

tbp

interest"

worid

,csuu
resort

But

terrible

a

the

or

"pro-

subseauent

to

currency

t-u-xcucv

manimr-

cnrroncv

the

imnaet of

^enerallv

to

inflation
it

as

on

devoted

onnrmnnv

disbursing

enormous

and

henefits

"7
.r
™ '
living beyond its income?
'
As
a
result of these gigantic
.

and

forces,

wumuv,

the

corded

public

lear,

roiciea

7

signify?

those

tariff

protection

wnicn
which

nnor
prior

ac-

lo
to

me
the

Reciprocal
Agreements Act amounted to be-

the

tween 45%

sweeping recommendation

independently

away

uriilaterally
is

tariffs

medicine

leged

with

disease

cure.

•

-

Also

-

than

is

Commissions

the

al-

--

to

be made to 50%

ly,

.

.

the
me

of
or

rifin

recall,

recommendations

Security
Rewhich, you may
asked by President

was

to

study
to

and

the. Paley

make

rate

Re-

zim>

dntip*

can

by

the. Na-

a

is

an

the

had

ad

valorem

would

is

far

a

„

„

be

lead and zinc tariffs

numerous

e

point appear? Why
sary to procure an
Isn't

it

am

lessly alarmed, as these
of ; £in
Administration

need-

were

of

50%.

given

acts

shows-why

into

the

are

some

States,

own

domestic

the fact that

still e
great latent
f

imports is

ZINC

Specific and Ad Valorem Tariff Comparison

Cents per Lb.

Ore

4.96

*1947-52
Feb.

Metal

Ore

2i/g'>

iy2
•

15.89

_

5, 1953

1A

%

13.50

-

different

eeonomie

di*ferent

1

1A

survives

nhilosonhies

ecor)omic.

July, 1<)48 to July, 19W.

philosophies.

^

^

ments

30.2%

and

♦

governmental.

£. St. Louis

Specific Rate
Per Pound Average
Ore

Metal

4.7

shelter,

Feb. 5, 1953_
and

Feb.-July,

_

If».35-1938;

7.9

serious
we

implications

have

for

us,

as

lately discovered. How-

the

ever,

present

government

of

conservative

Great

drifting sharply

Ad Valorem

Metal

3/4

%

5.3

6.2

3/4

%

6.5

7.6

fTariff

suspended

1952.




1%

1939

and

1910.

t

..J

•

t_

_

J

_

j

~

i.

today

to

point

the

out

plan.

I

would

refer

yOU,

however, to the simple analysis of

the proposal made here in Denver *
only a few, months ago by Mr.
Simon Strauss.i Speaking frankly,
buffer stocks tend to grow: and

become unwieldy, and ultimately
_

_

they pose a troublesome problem
Qf disposal. Just how do you get
rid of them? Agriculture has this
problem in some degree right
now.

All schemes of government inthrough the purchase
through the nurehase
of commodities are risky. It may
be pleasant for the farmers to
-

tervention
tervention

government support

cer-

Britain

is

Wanted: A Stabilization Tax

from gov-

away

kets

of

both

th

lead

and

zlnc>

It

rp-onpnine of nrivatp

inr0H&n tne re opening or private
metal

trading

the

on

London

Metal Exchange, but, as you know,
is

disposing of its metal

accumu-

lations with unpleasant repercussions in our market.
Far be
any

it from

to suggest to

us

country what economic sys-

tem it snouid adont
tern it should adopt, If neonle
it people
other countries want socialism

of
ot
or

even
even

rommnnism
it i<?
communism, it is, of course
ot course,

their

prerogative, but I do think

markets beyond

oar controA bu^ which affect us

,

}

y

ination of

lead

and

.

zinc

unfetter

international

trade.

26.4%

31.4%

industries

mining

to promote the adoption by Con^ressof an equalization tax, or a
stabilization tax, if you prefer, on
imports, graduated upward as the
market price of

metal declines,

a

somewhat as shown in the followinS table, and disappearing
abOve

„',;n

t+

interesting to

s

It

i0O^s

doing

arc

un-

be

compeRed

bu]

to

pRyt

a

-

farmers

amount of

work producing thing
put>liC won't buy toda >

can»t

\ybat

tbe

as

necessary
and

see

SLe*

an enormous

reason

certain base. In the SUg-

a

I

.reff°i1 TA,

bring

out

out

the^

P°mts 1S that I believe anyAegis 8e1su<?nJ Dei°w, ioc per pouna is .
nronosal fn aRRisf Bia mirselected as a base, with the tax native proposal to assist the mu decline in orice
industry should avoid placu
I01. ®»cn ■iC
bejow

i«c

Der

DOUnd

is

aecimf m price.

^t.^ever, knock-out

economically fashionable and start
^

nredicament

per

Found)

and administration.

against playin

Tax

government

answers

to

an

cartels

15.00

to

15.99—

0.75

metal resources. A few

14.00

Un¬

and

to

14.99—

1.50

the

.—

distribution

President

the

are

orderly production

16.00 and above—..—None

and

;

planners, who believe that inter¬
national commodity agreements
or

—-—Price

tl

into the hands of the internationa!
or

Zinc Metal
(Cents

of

£armers. It should involve a mini.
mum of government interferes.
We must guard

Proposed Sliding Scale
Equalization Tax on Lead

Jo delude
so

simple,

a

...

blnk]!?g will the climthat
tariffs
do

that

me

solution would hp fnr thp

PraJllcai sol.ullon ^ouia pe tor tne lbs. of tobacco? It>will be most

y*
.f
TT
.+ ^
ucrmore,
it
the
united
States decides to go to completely

!fee1/rade'I1" °"ght

to

seems

ernment do with its holding of
43,000,000 lbs. of butter, 340,000,000 bushels of wheat,
464^000,000

of

the

urged

worlds

days ago,

Congress

ta
Trad*

13.00

to

13.99—

2.25

currencies,

continue

12.00

to

12.99—

3.00

muuiPie

exchange rates, import
cxcnange raies, import
quota
systems,
State
trading, and other ingenious de¬
vices for restricting international

11.00

to

11.99

3.75

permits,

10.00

to

10.99

4.25

9.00

Agreements Act and to provide
adequate safeguards, at the same
time, to our native industries. A>

to

9.99

5.00

less

devaluation

of

multiple

are

Below

tax

lead

on

State Department has gone
beyond the original intentio
of the Act, which was to limi
far

likewise

NOTE—Equalization

Reciprocal

the

5.00

9.00__

the

are

more

Indeed

these

ores

!l„!

important than

as

we

in
are

the

conctnt'atli«' 70%
me,a'
»"
z,nf..or" .<"■ """"'"'"A,S°£°-7®Tt ?j

cuts to 50% of the 1930 rate (the

annually

restricted

and bas ad

metal

rate.

to

base

allow for

could

be

inflation,

revised

or

other

development,,

domestic

concerned, I

The

This would be

to

simple device,
perform the equiva

limit today under the Act Is 75%
tection

wiped Out the

granted

lead

and

.

pro
zin

some redress appears in order fc.

commodities with specific rater.

of a floor, as currently Voprovided
not
only
that
the vided agriculture, a floor even
manipulative foreign trade prac- more necessary in mining than in
™®»J^ou^n separate^l^isiauoi.
tices I have outlined disappear, agricultiire. A great deal is heard
a
but also that our government does nowadays about the desirability
a
away with the internal subsidy of "stabilizing" markets; somo of swer m
it wuld
system of aiding many industries these proposals are highly objecContinued on page tttt
with which the miners have to tionable because they would in- ■
do.
business,
namely,
domestic volve government coercion, or a
s^^o^strTuss, vice-Pres.^AieVicai
agriculture,- shipping- and hous- vast bureaucracy. On the other smeitin* & Refining: Co^ October 1959
ing. We miners are taxed once to hand, a sliding scale stabilization Miain* Congress Journal.
j

^o?iondmLSC^
^dl thr^ugh Separate legfslatior

DraTtkJ^-

Equivalent
Ore

*1%

and

to supply our

1

as
actually
conducted
today, day, in the hands of the governTherefore, I submit the following ment.
Do
you
remember
the
suggestion.
potato fiasco? What will the gov-*

chances'with1 genuine1free^rade, afent

*1%

1%

out

_

ernment participation in the mar-

mining industry

1952.

5.30

11.50

permit

operating, al-

metals and minerals, known ^~'Seafn~
IfZhast^ "1^
f»s ,,s!ate
ylbaton,gnidart
Great ^°"1i^eas^'eSS0a/y^
whft «nauv wf™.
B"taln und«r socialism, which is, a "?od«rn
=a*®8ua 'ds what finally becomes of the huge

Insofar

6.7

14.05

_

turn

Some

tariffs.

42.8%

5.6

Tariff suspended Feb.-June,

Avg-. Price
Cents perTb.

didn't

program

^

believe in cartels, pri-

may

vate

devices

Metal

ZINC

-Period-

a

as expected. It did not stop war.
It did not do away with trade
away witn trade

designed

*No tariff

<.

time

barriers. We have more ingenious
schemes to hamper international
countries resort to the bulk buy- commerce than before the trade have the

They

ereatlv

—Equivalent

'

1935-40

who

discarded,
foreign trade will continue to be

Ad Valorem

Per Pound

N. Y.

-

determine

commerce

LEAD

Period—

markets

and succeeds, other countries have

^

^

The
trade

only about 75,000 tons per
One of the ill effects of such

Specific Rate

i

-

Stock

P

under

current competitive. economy .Indeed^_we
have something to show the whole
world of inestimable value to all
who might be inclined to follow
our competitive system.
our
might be just as well to forget our small tariff remnant and
start with a fresh approach. After
all> tbe Reciprocal Trade Agree-

our

'intwventinn ^
Jhe .monopolistic intervention of
for,^lgn1 governments in mter-

no

upon

AND

in

in Europe

Predicament. I doubt that many
of y°u realize we have no safeSuard from the effects of manipuor monopolistic practices in
lative or monopolistic practices in
international metal markets of
foreign
governments.
Although
our nati°n endorses free enterPrise, under which competitive

We

value.

United

our

our

oommnn

common

accomplishments

our

present

our

is of little

whereas

year.

Avg. Price

of

to

our American mining industry is

high dependence

repudiated at the polls!

LEAD

phase

another

moment

a

a

were

recently

for

50%

a

greatest lead imports in his-

tory,

unnecessary

Perhaps I

3.2c

mine production was only 375,000
tons. Before the war, our imports

re-

pass

me

natl0nal

the

neces-

N.S.R.B.

ikof houo kqo11
that have been

*

Let

imported

depart-

was

and

zinc

and

^

barrier. Last year, for example,
nearly 600,000 tons of lead were

of

s:

fresh view-

a

..this

duplication?

the

drew

nt

government

ments, wherein does

port?

1

a

pro-

was

from

cry

cut

t

its

about

cut

a

with

protection

lead

States.

-

This

it

as

equalization tax will

,<5> We still have great latent
^
highly complex, indeed highly obmineral resources in the United what they lead to To me the is- noxious features of the buffer

protected

rate,

still

after

from
as you

accompanying
been

No hearings were held, as far as I
find out, and no contact made

the

valorem

zinc.

can

upon

spe-

manv

different

in

pound,

per

far

Similar tariff treatment

various .government departments?

mainly

pro-

as

ra

ad

an

lead

If

tection

Security Resources Board
comprise entirely the conclusions
of,, government
officialsfrom

as

nf

specific rate 50%,

see

table.

tional

industry. Inasmuch
Paley
Commissiom also

are

ad valorem rates. Ob-

cutting

50%

cutting

suggestions

of

of

or

viously,

May I note in passing, that

gress.

but, unfortunate-

and

by wnai is known
oy what is Known

rafPR

centage,

which could be presented to Con-

the recommendations

lead

vi

market

often

people, or we can adopt subsidies, occasionally recommended as a
cartels and governmental controls stabilizing aid. I cannot take the

Both

^

was

cine rates or auties or so many
cents per pound, and not by per-

National

Truman

both

tectea
tected

Palev

rpey

Board,

sources

port

the

iimewui

endorsement
enaorsemeni

by

the intention of Congress in 1934
to limit the tariff cuts that could

intended

r

negU^

almost

an

bitter

noteworthy is the wholemy
is me wnuie-

aisu

sale
saie

it
-

and 60% of the price,

has dwindled to

gible 8% currently. Clearly it

Such

is- worse

to

metal

many

shocking.

the

and

4

the
Let

Trad^ ing of

Perhaps
am
needlessly disturbed, but I think
do

atta

purpose. Either we believe in the

think

answer.

miners

mining

Clause

1-\A1 -I

XTTA

or

must-sell their products in a high*y competitive international mar-

"°t bar imports.

a

surround

the

for

navments

^

criti-

does the

the

am

wh or on Id

attention

mean? What

with
wnu

accord

II

devastating

welfare

be

What

word "substantially"

War

i fl t wT

making

legislation."

language

as

am

1

been

t0

anticinate

devaillatinn and

ac-

such determination should be spesPe~

cified

1934i

Escaue

an

wuim-wiuc
World-wide

tion is in accord with the national
interest.

in

ooijih

world

.

stantially
of the

bv

wbo

is,-or is expected to become subdependent on imports
..

T

us,

T? i4V\n>»

vn Acn

own

domestic market,-and stimulate a
American system of competitive search for new ore deposits. It
free enterprise, which for over will also enable consumers to
153 years has shown the way to procure their lead and zinc supply
the world to a means of elevating at reasonable cost.
the
standard
of
living
of
its
Buffer stocks for the metals are

(4)

then

us

have

thSt

determined that the United States
^

for

sioie 101

safeguards

vjded

is

it

known

Reeinrncal Trade Agreements
Reciprocal Trade Agreements

wRb

either crude

in

whenever

harl

would

back

gress
the
|be

enacted

ort

of

sUenuous"appeal"made" tTc'on-

ciprocal Trade Agreements Act be

industrial material

law

limit

<2> We would be extremely
shortsighted to exclude, or bar
imports o£ lead and zinc;
(3) The lead and zinc tariffs do

.

store

in

there

sure

tirely

the

.

Recommenda-

.....

Under

*

'(That permanent legislation en.....

Agreements

f"ldHhp"fta
■

follows:

as

barriers

trade

that

recommends

metals and minerals be

on

tion is

.

that direction.

m

Trade

the

Rwiprwa_T^rade- Agreements

Cone

terials

taken

adoDted

I

as

.

a. u

a

,

our

world

or

wide and

as

Congress

™o

sudden

comnlain

we

market.

outside

swing

oroblem

the

equalization tax is the

chooses.

your

the

governments'^LrflciDaguvcinmenib
parucipa-

foreign
xuicigu
tion in

min-

run

is

often

so

how

muc

have

to cut them down without inviting

decide^wtaS. i^d
procures
wnai,
aeciae

cus-

fluctua-

that

occurred in recent years. But how

dustries' entire need- We re1uire coercion through its taxing power miners to continue
to tax your neighbor for the same low
needed imports
^ade Agreements Act some imports Therefore

to

their

nor

violent

metal

especially

in agri-

way

„.,i

culture.

$10.00 bill to help

tions

benefit,

miners

like

will

you

already

its

tomers

ernment

as

tendency

Neither

"inevitably intoreVabTe'a^d'u'n-AmrriVangovbureau-

established in subsidized shipping,

in the

(!) We do not produce enough

tn

pp

cratic

find

this conclusion is correct, we must
face these facts:

review

me

hannpnpH

ead and zi c u

on

government

and

tbe

subsidy,

a

^

w^ nms^^mDo'rt ^eve^more"^?must import ever more lor

sumers would

be attracted to, and advocate

may

Vigorous Mining
Industry?

The

when

products!

country.
Do We Want

43

^

hd^ma

.

„

■r

The Commercial and Financial Chronicle

Thursday, February 26, 1953

...

' <923)

44

(3) Although the equalization
should be paid in the month

43

Continued from page

tax

following arrival, foreign shippers

prior
I therefore suggest

must know the

of Dollars or

There's No Shortage

to

shipment.

tax payable

for discussion this afternoon,

Commodities in a Free Economy

the average

E. & M. J. price would
a
month leeway

with

used

be

that

for the foreign produc-

available

that ers. In other words, for shipments
arriving in January, the E. & M. J.
mot prevent the
importation of
(2) The equalization program price for November would apply,
any
necessary
metal. It is de- should cover a number of years,
These are some of the more
cidedly worth trying.
especially if exploration work and important practical details to conIn conclusion,
stabilization of development are to be encour- sider.
commodities has figured promi- aged.
Therefore, a method of
At any rate, the lead and zinc
nently in thinking among Govern- changing the parity price after it industry has an unparalleled opment circles of recent years. The has
been initially established portunity today for constructive
report of the President's Materials should be developed, in the event action of benefit to all. Let's take
Policy Commission devotes much of deflation or inflation.
advantage of it.
vigorous

is fair for the three parties
I mentioned above.

mining industry

in these critical

times, and would

*ain

a

Casualties were about even with a year ago when 177
occurred and exceeded the 127 in the comparable week of 1951.

Inc., states.

Continuing below the prewar level, failures were down 34% from
the 1939 total of 267 for the similar week of that year.

Among casualties involving liabilities of $5,000 or more, there
a decrease to 147 from 170, but failures of this size remained
more numerous
than last year when 140 were reported.
Small
casualties showed little change for the week.
Retail trade accounted for most of the week's decline, with its

was

failures falling to 89 from 108.
and wholesalers equaled

slightly lower than

was

More retailers failed than last year
their 1952 level. In other lines, mortality

a year ago.

,

of achievIng stabilization in mineral and
meal prices. It even goes' so far
as to
suggest the application of
to the desirability

space

ment
Is not

taxpayers
over
$600,000,000
subsidies and the end is not

in

zinc,

•

Wheat is on an ex-

in

import basis.
There is no scrap or secondary
wheat!
Scrap lead plays a big
part in the lead market.
Time does not permit analyzing
an

on

in short supply but

Estimated This Week at a Trifle Above
will have little

consumer's steel supplies in the first half of this
year, says "Steel," the weekly magazine of metalworking.
,
Open-ending, effective Feb. 13, means that any steel produced

Lead and zinc are not.

Tport basis.
They are

adding, "copper is
available."

Previous Week's Rate

effect

on

any

of that needed to supply

excess

ments

_

to

be sold

can

consumers

foods

Index

were

mixed

Continues
last

week.

Mildly Upward
Extending its rise

week, the wholesale food price index, compiled

by Dun & Bradstreet, Inc., advanced 1 cent to stand at $6.20 on
was

down 6,1%

frpm $6.60

a year ago,

and represented

drop of 15.2 from the post-Korea high of $7.31 recorded on the

a

corresponding date two years ago.
The index represents the sum total of the price
foods

in

general

use

per pound
and its chief function is to show the

general trend of food prices at the wholesale level.

Open-ending of the Controlled Materials Plan

multitude of sharp dif¬

a

ferences arise.

agency,

Steel Output

in

s63ght. Moreover, when you at¬
tempt to apply the principles of
the Wheat Agreement to, say, lead
or

5

page

be found if steel is

can

the

cost

has

statistical

the

International

the

for

Agreement

Wheat

from

in

the previous

of

Price

Food

Feb. 17. This

Wholesale Commodity Price Index Altered Its

The Slate of Tiade and Industry

principles to metals. This
a particularly happy sug¬

gestion,

Trends

of 31

Continued

Agree¬

Wheat

International

the

Wholesale

government-authorized allotwithout regard to allotments.

Downward Course the Past Week
Reversing the sharp downtrend of the preceding week, the

daily wholesale commodity price index, compiled by Dun & Brad¬
street, Inc., registered a mild advance last week. The index closed
at 278.16 on Feb. 17, comparing with 276.55 a week earlier, and
with 303.73 on the corresponding date last year.
Grain markets were mixed with prices moving irregularly
higher in the latter part of the week. The upturn in wheat was
attributed to mill buying against substantial flour sales around
mid-week, improvement in export business, and the continued un¬
favorable new winter wheat crop prospects. Strength in corn was

largely influenced by the announcement that sales of government
would cease. With current prices below the support level, the

corn

yellow cereal is reported going into the loan at a rapid rate. Trad¬
ing in grain and soybean futures on the Chicago Board of Trade
rose sharply last week.

price of $1.80 per bushel, and our
customer agrees to pay the lower

will be little of this excess steel in the finished
demand, for there are enough CMP
tickets in circulation to sop up all of the hard-to-get items.
The products in which there will be "free" steel will be those
that already are plentiful, states this trade weekly.
Also suggesting that there will be more than enough tickets
to cover all of the hard-to-get steel products is the widely held
fear that many steel consumers will insist on buying freely avail¬
able products, such as wire and wire products, wire rod and small
bars, without surrendering their CMP tickets and that they will
use their tickets largely to get more of the scarce steel products

price of $1.20 per bushel ifa!the
world market should drop below

like heavy shapes, heavy plates, large bars, forging bars, large
J
"U^si
3 V'aI 1 n/^l
"
diameter tubing, and hot-rolled and cold-rolled sheets, "Steel'

estimate by the New York Cotton Exchange indicating
consumption last month continued above a year ago.

gut there likely

forms that are in strongest

Wheat Agree¬
ment. Suffice it to say it estab¬
lishes an upper and lower price
of wheat. The United States agrees
to charge no more than the upper
International

file

«

1

*a

—1

J.

...1 J

the

most stabiliza¬
schemes fall down is that

The reason why

The penalty
overproduction or under¬
consumption, depending upon
whether or not the arbitrarily
selected
or
agreed upon con¬
trolled price is high or low. No
human being, or group, is smart
vanough to set a price which will
perfectly balance production and
tree market price.

consumption.
Therefore,

proposal

for

lead

stabilizing

any

or

the cardinal

should observe

zinc

that

believe

I

tequirement of least interference
with the function of the market
(dace. That is precisely the virtue
af the proposed stabilization or
equalization tax in lieu of a tariff.
It would be automatic in opera¬
tion.

It

requires
with

payments

no

from the Government.
meddle

It does not

the market.

Many

examples .of stabilization schemes
Involving • buffer stocks or inter¬
national understandings, such as
the International Wheat Agree¬
ment, have been tried and have
failed.
Why not try the simple

equalization tax?
I

am

to

taken

it adds.

happy so many represen¬
mining industry are

*

ducing at capacity during the first half- of this year, but there
been a reluctance to make predictions for the second half,

has

opinion have been inclined
operations. Now,
Avery C. Adams, President, Pittsburgh Steel Co., predicts the
steel industry will operate all this year at capacity, "Steel" maga¬
and those bold enough to

believe

demand

because, although
the equalization tax is extremely
dmple in principle, certain de¬
tails must be worked out so that
the interests of the miners, for¬
eign producers and consumers are
jrotected:

(1) The first is, of course, es¬
tablishment of a proper parity or
base
price.
In this respect, it
might be well to ask the advice
jf the various domestic producers
is

to what the

have

price should be.

I

complete faith in their in-

'egrityof suggesting

a

base that




venture

a

American

easiness,

cotton

prices

were

mostly

private report that cotton plantings would show little change
•

Supporting factors included some
ary

Sales of the staple in the ten

price-fixing, and the Janu¬
that

spot markets fell sharply last

bales, from 153,100 a week previous, and 105,300
in the corresponding week a year ago.
CCC loan entries during
the week ended Feb. 6 were the smallest in ten weeks, and totaled

week to 86,500

93,300 bales, compared with 142,100 a week earlier.
Trading in packer hides continued active with prices working

to mark the third

slightly higher
movement in

raw

hide values.

consecutive weekly upward

The Boston wool market was gen¬

erally quiet although prices held steady.

an

Iron

and

Steel Institute

announced that the

operating rate of steel companies having 93% of the steelmaking
capacity for the entire industry will be at an average of 99.5% of
capacity for the week beginning Feb. 23, 1953, equivalent to 2,244,000 tons of ingots and steel for castings. In the week starting

Trade Volume Holds Close to Near Record Level of

Previous Week

credit terms were instrumen¬
close to the near-record level of the
prior week in the period ended on Wednesday of last week. Retail
merchants generally had larger sales than at this time a,year ago
when a record for February was attained. However, merchants
with smaller volume than a year ago were much more numerous

actual production was 2,235,000 tons and the rate 99.1%.
99.4% and production

tal in sustaining retail trade

than in recent months.

For the like week a month ago the rate was

2,240,000 tons. A year ago when the capacity was smaller actual
output was 2,097,000 tons, or 101.0%.

The
come

Makes Further Gains in Past Week

The amount of electric energy distributed by

and power industry for the week ended
at 8,196,186,000 kwh., according

mated

the electric light

Feb. 21, 1953, was esti¬
to the Edison Electric

Institute.
The current total was 48,725,000 kwh. above that of the pre¬
ceding week when output totaled 8,147,461,000 kwh. It was 735,423,000 kwh., or 9.9% above the total output for the week ended
Feb. 23, 1952, and 1.363,186,000 kwh. in excess of the output re¬
ported for the corresponding period two years ago.

Car Loadings

Decline Further in Latest Week

Loadings of revenue freight for the week ended Feb. 14, 1953,

United States Auto Output Last

Week Raises Prospects

For Record First Half

production in the United States last week
rose 8%, increasing the prospect for a record first half production
of about 3,200,000 cars, states "Ward's Automotive Reports."
It aggregated 124,101 cars compared with 114,935 cars (re¬
vised) in the previous week.
This was still 55% more than the
80,076 cars turned out in the year ago week.
Total output for the past week was made up of 124,101 cars
and 26,120 trucks built in the United States, the highest since
April 21, 1951, when approximately 200 more cars were built,
against 114,935 cars and 22,489 trucks the nrevio^s Week and 80,076 cars and 24,317 trucks in the comparable 1952 week.
car

Business Failures Turn

Moderately Lower

Commercial and industrial failures declined to 176 in the week

ended Feb. 19 from 200 in the preceding week, Dun & Bradstreet,

with

a

year

ago

continued to*

cities in the East affected by the population

The total dollar volume of retail trade

mated

in the week was esti¬

by Dun & Bradstreet, Inc., to be from unchanged to

4%

Regional estimates varied from the levels
of a year ago by the following percentages: New England —2 to
+2; East —3 to -f-1; Midwest 0 to +4; Northwest and Southwest
4-2 to +6; South and Pacific Coast +1 to +5.
Shoppers spent about as much for apparel as during the prior
week and slightly more than in the comparable week a year ago.
Promotions of spring clothing gained increased attention, particu¬
larly in parts of the South and Pacific Coast. Most retailers of
apparel anticipated a new record volume for the Easter season, j

above that of

a year

Retailers

ago.

of household

goods noted

a

continuing decline in

Some merchants attributed the faltering de¬
mand to the record volume of consumer debt.
shoppers' interest.

totaled

681,750 cars, according to the Association of American
Railroads, representing a decrease of 8,994 cars or 1.3% below
the preceding week.
The week's total represented a decrease of 56,026 cars, or 7.6%
below the corresponding week a year ago, and a decrease of 58,807 cars, or 7.9% below the corresponding week in 1951,

unfavorable comparisons

from some large

shift to the suburbs.
"

Electric Output

Passenger

early

from last year.

could not sustain capacity

reports.

Feb. 16,

some

Attractive promotions and easy

tatives of the

here in Denver,

(

long will steel remain in strong demand?
Everyone
has been confident it would be strong enough to keep mills pro¬
How

The

Is either

will watch the market

that if mills and consumers show a tendency
let the situation get out of hand, remedial measures may be

zine

they destroy the wonderful and
automatic regulating function of

Defense Mobilization

conditions closely so

to

Ehould collapse.

a

Office of

The

price
of around $2.50 per bushel and
the International Wheat Agree¬
ment price of $1.80, at tremendous
cost* and no one knows if foreign
countries would be willing and
anxious to pay more than the go¬
ing. price if the wheat market
much.- higher open market

tion

Following

steady during the past week. Early weakness was influenced by
easiness in the securities market and in other outside markets and

points out.

paid our wheat farm¬
difference between the

It We have
ers

J

Ji-.-

rst-tT

Daily average purchases totaled about 90,000,000 bushels, compared with 51,000,000 the previous week, and 41,000,000 a year ago*

However,

goods

was

the total dollar

not

volume of the sales of household

off sharply from the record level reached tw2>

years ago.
The volume of

trading in most of the nation's wholesale mar¬
perceptibly the past week. As during recent
months it continued to surpass mildly the level of a year earlier;
despite price dips from a year ago, wholesalers in most lines had
larger dollar volume than a year before.
kets

did

not

vary

country-wide basis,

taken from
14,
1953, increased 3% from the level of the ^receding week. In the
previous week an increase of 1% was reported from that of the
similar week of 1952.
F^r the four weeks ended Feb. 14 1953, an in:-crease of 3% was reported.
For the period Jan. 1 to Feb. 14, 1953;
department store sales registered an increase of 2% above 1952.
Department store sales

cn a

as

the Federal Reserve Board's index, for the week ended Feb.

Retail trade in New York last week displayed perceptible im¬

provement, advancing from 18 to 20%

over

the like week in 1952.

According to the Federal Reserve Board's index department
store sales in New York City for the weekly period ended Feb. 14,
1953, declined 10% from the like period of last year.
In the pre¬
ceding week a decrease of 7% was reported from that ' of the
similar week of 1952, while for the four weeks ended Feb. 14,
1953,

decrease of 6% was recorded. For the period Jan. 1 to Feb. 14.
1953, volume declined 5% under that of 1952.
a

Volume 177

Number 5193

.

The Commercial and Financial Chronicle

,

.

(929>
Continued

from first

page

There
that

is

considerable
of

many

the

evidence

governments

in Western Europe are now aware

Will! I S 'WIOIllI

Willi If 111

9

0161(111
^

m

of

economy

the

country

trying

this device has been set back and

has

expansion

been

almost

possible for it.
Still

-

im-

belief

has

so

ai*e

of

is

necessary to maintain
sistent standard of living,

con-

a

and a
greater expansion is necessary if

the

standard

of

living

There

is

have

many instances in history to prove
the
sterile
nature
of
controls,

that

it

is

second

astonishing

quarter of

in

we

the

had such a wide,
temporary, belief in such
With

the

20th

tury

the

these deceptive

cen-

though
idea,

an

beliefs

in

air, it is not surprising that
policy has been con-

foreign

our

fused

(2)

be

coun-

necessity operate
against expansion. Since population normally increases,
expansion

improved.

again freely convertible.
We should change our en-

to

a

the

try and can help its international
"trade.
Controls are always reand

and

not

freely

con-

vertible.

We,

try

this country,

declared

convertibility

as

multilateral
mum

belief

trade

inations.

be

obvious

cies

that

get in balance

controls

which

make

non-convertible

tinued.

made,

bold

A
or

we

who

man

trade

long

as

curren-

are

effort

as

con-

■

must

be

advocating that

are

has

been

sick

very

Others will

say

there

can

countries^ of weak currencies is

increased because it is
from the production and trade in
•and
other
products;
we
have goods
that foreign credits are
passed "Buy America"
acts, and earned. On reflection, it should
greatly

given

have

we

be seen that production and trade

tariff

reductions

through
bargaining
under
Reciprocal
Trade Treaties
gram

cannot increase significantly as
pro~-bmg as the controls and restrichand, but have tions which prevent free converti-

the

insisted

"escape

one

on

on

"peril

hand.

this

kind

lime for

time

In

points"- and

on
the other
countries
cannot

Other

\inderstand

A

our

clauses'^,,

of

the

of

double

b ;y afe
vertibility

of

should

3rd

the

Convertibility
t

^an convertibility ot

most

we

•and

tried

Europe

shift

of

orthodox

more

theories.

the

of

wide
In

this

countries in

con-

Western

again expressing con-

are

fidence in the efficiency of sound
monetary policies; that a leading
article in Lloyds "Bank Review'?
London

of

dares

workability

of

challenge the
Imperial Prefer-

for the good of Britain and
British
Commonwealth, and

onces

the
that

the

important body,

an

Detroit

advocates
ss

no

Board

of

such

.

w£nt iflls

countries, as well as in

m su

jur own country. if multilateral
ac}?f 1S
,rega.1/1 lts, time*-tested

Quadly of growth and expansion,

Cpntnail m

?r ^.lvv-.
"a„r*yipe

as

,

longer in the best economic

®

:

this country.

our

policy if

our

wrong

international

trade

export surplus since

from

which

long-term

dollars

will

be

necessary

one

fact

mere

would

be

so

believes
in

money

that

available

eliminate

surplus

export

our

or

ports is the best

to begin to

way

It

funds

has

of

war

had

to

over

be

$30,000,000,000

paid

for

not

by

advisable.'

made there is always

hardships

any

seem

wise at

the

time,

(and even though intangible benejits

may

have been derived from

such generous
giving.

What should be done to
change




would

necessarily

be small and quite localized,
A good deal of the so-called
damage which would result front
the transition to

a low tariff basis
would
be
identical
with
that
which results in every day cam-

petitive practices and about whieb
there is no major complaint, fet
our economy, adjustments of busl-

units to changing conditions;
as state taxes, state legisla-

ness

such

almost

the

normal

products

and

in

thing

our

force

adjustments

tahi

-?

u

fhp
H

.

^y
fh

.

m„rlrpf

pYrhnn^'

nlnf,p

nnntrnfo

aPp

solidly entrenched in nearly every
COiintfy of the world thev cannot
5e removed all at
ment must
0f

a

come

Improve-

once.

about

as

result

a

number of particular actions

an designed and timed in accord-

various

free

governments

convertibility

transactions

and

to
on

that

restore

current

their

ernments will adopt all the
ures

necessary

to

govmeas-

achieve

this

purpose.

policies should be at the

tariffi?

our

ments

Reciprocal

does not

all
oc-

is

Trade

which

program,

major

years

meet

effort

has

most

been

in

lost

Agree-

the last 18
to liberalize our commecial

policy," has

its

of

orderly

an

and

gradual

way,

the tremendous gain not only for
our

but for world trader

economy,

ef-

>

..

U. S. Should Lead Way in
Tariff Reduction,

only when people fear
there might not be enough money
to cover withdrawals that a run

fectiveness through legislative

bank takes place. The

of his statutory powers to reduce

only country able in

tariff

give

on a

principle
to

ence

holds

with

true

same

refer-

convertibility funds.

amendments

It

will

do

achieve

currencies

permanent

no

not only

good

convertibility of
long as our commer-

the

imports

by
a

valuation

customs

for

have

our

ex-

of

the

reason

but by
imports under

tariff,

free
as

Our

rates.

ports

to

because

and

Chief Executive has used up most

continued to lag behind

We Must Increase Imports

shutting

methods

our

purposes,

by

of items which is discouraging to

countries

tive

most of the dollars

earn

importers

and

by

classification

other

aspects of customs

tration. We also limit

tribution toward the

America"

our

international

which is made by

accounts

investments
by our tourists, or by
0ff-shore purchases of mili-

abroad,
our

balancing of

trade

our

or

All these play im-

by

legislation
acts

restricadminis-

imports

our

such

"Buy

as

adopting
of

tariff

Reciprocal

policy insists that we export
than we-import. It is
by
selling imports to us that other

with which they buy our
exports,
j am not unmindful of the con-

world

type of reduction embodied in

more

complicated

every way t»
leadership yby
a
unilateral reduction
rates. The bargaining

the

of

which almost amount to exclusion,

the

The United States today is the

of

out

cial

an(j

the

breaking of
reached almost

and

Trade

Treaties

Quae

pro-

has not been effective and
should be abandoned, after w»
adopt a broader and more logical
policy of reducing all our tariffs
to a low level,

gram

As
our

pointed

out

previously, it

exports must be reduced be-

cause

do not adopt

we

ization in

liberal-

a

commercial policy,,
unemployment
will
Cer—

by
specific
preferences in other items of for-

large

eign

tainly result. The usual argument?

aid

legislation

restriction

similar

States

•

having

believe

the

United

on

purchases from

a

abroad.

following

I

actions

having

proportions in the world, it is unreasonable to expect any outgoing

dollar

shortage

of

most

foreign countries. Capital, which
gj^
noj. an aC£Uai COward,
cannot

he wooed

gQ long ag

by such tactics,

persistent ex-

our

should

be

made

but

which

also

would

to

establish

commercial invoice values

Gf private investments from this basis
country large enough to offset the
chr0nic

effort

Every

secure the enactment of a new
contracts bill which would not only simplify
epidemic customs methods and procedures,

our

.

against

reduction

the

tariff

of

rates is that it will create

unera?-

ployment. Anyone trained in

eco-

against

which

as

tariff

would apply, except
of fraud.

in

the

rates

obvious

thirties when
toms

root

tariff and

our

barriers

all

of

kinds

cu&~

were

the highest on record we had the

most massive unemployment thi*

country
also

has

worth

ever

known.

It

m

mentioning, that the

high rate of employment since the

partly accounted for by our
exports, has been paid!
(B) The repeal of all "Buy for out of the taxpayers'pocket at
America" provisions in our legis- the rate of three to four billion
lation.
dollars a year. Do you, since you

cases

war,

tremendous

1

(C) The
quotas,

against

abolition
device

a

of

used

import

are

widely

method

paying
to

for

it,

want

continue

this

are

or

you

country, but which willing to try new methods?
we cannot get abolished when diThese
are
things we should
rected against us, if we have simi- think
on.
Events
have
thrust?
rencies. We have been too effec- lar quotas directed against other world leadership on us. To dis¬
tive through our traiffs and the countries.;
"
'
,•'*
charge, such leadership we need

this

related legislative and adminisThe points I have just men- constant discussion by all capable
trative provisions of our laws in tioned are essential first steps, organizations such at this one so
keePinS foreign goods out of our We must, however, take a bigger that our actions may be prompt
markek We have been spending
less abroad than we should if we
want to maintain the volume of
our exports.

Chancellor

chequer,

the

of

has

said

British

Britain

and

"trade not aid." Mr. George

Ex-

Council

of

the

improved

on

saying what

the:,program aj „each~cQUhfry.-.trade, not

this

we

account of ourselves.
,

Shearson

J
a

^Va

,

Hammill Cow
r

^

»

CHICAGO, 111. Charles
Winters has become associated
with Shearson, Hammill & Cov
208

South

La

Salle

Street.

Mr.

tinue until we have a truly low Yantis & Co. and Robert Showery,

statement

aid.!'.

limited number

.

Charles P. Winters With

Sloan,

Interna-

need is "two

one way

over a

humility*

of years, such reductions to con- Winters was formerly with F. S.

the recent Chairman of the United

states

be spread

With

consistent.

hard work and good will toward
all, I believe we can give a good

wants

tional Chamber of Commerce, has

It is obvious that anti-inflationary

all

every-

our

run

reduce

the minimum of localized damages
would occur and there would be

When
to

to

The

vaults

its

taken

jn

bank has sufficient

a

is

.

■

.

such gifts

hard-

some

ship. Since the amount of addx~
tional imports which might resti£&

nna

way
permanently to solve our
international trade problem, even
though necessities may have made

Whenever

industrial readjustments must be

Reciprocal Trade Agreements

dis-

step. We should change our tariff policy because we lead the
world in industrial efficiency, bethe foreign countries which have
ance
with the changing and dycause we are the world's greatest
^ught and consumed our exports, namic set of circumstances in
The era of grants-in-aid is rap- creditor, and because our persistbut
by the American taxpayer which
we
live.
It is important idly
coming
to
a
close,
not ent export surplus has a disturb^on°nnffnnn
and .^fts of over that the objective of full converti- merely because the American tax- ing influence on international
^30,000,000,000, which we have bility should be announced as the payer is becoming unwilling to relations.
ade to foreign countries.
end towards which all the detailed
continue such grants indefinitely,
J believe the easiest way to do
It
seems
evident
that
giving steps will be directed.
People but
also
because
our
foreign
f°r Congress in legislation
money to foreigners so they can in
every
country should know friends are tired of their depend- f° announce to the world a gradbuy our goods is not a brilliant that it is the intention of their
ency on our gifts. Mr. R. A. Butler, ual reduction of our tariff rates to
the

in.
might be

six years

or

accom-

years;

curren-

against the

withdrawals,'a
cur.

such
would

'S1' port surplus exists, we are drain™rmiriit inS from other countries their
'JJi1
reserves and are imperiling the
aie® , ~ stability and convertibility of cur-

•,

Obviously something is
with

variLfc

r

p

interest of

nr

be relaxed

.

.

tariffs

of

happen, there

1?lllst be sound financial policies

Commerce,

the abolition

releasing

a

rencies be acnieved.
erty without payment, the uniBefore other countries can be lateral abrogation of concessions

nection, I need only mention that

happened a
opinion back to

be

be

two

portant, though not determining should be taken by our Congress: nomics knows the fallacy of this
parts.
(A) The passage of an effec- argument and I will merely recurexpropriation of prop- tive Customs Simplification Act. mark that in the decade of the

Persuaded to take the bold and
dangerous step of maklng *be11^ currencies freely convertlble lnt° dollars, even though

has

fund

^ary material.

rhTt

°w

the

loose

dynamic forces of greater produc-

Achieving

century there

F,ree C0P~

let

tlon and trade.

change is here.

beginning

ld

.

Change

quarter of the 20th

others five

or

strong position materially to present production abroad and tion offering low taxes for new
launch this plan. The big step the methods of selling foreign industries, new synthetic prodshould be the creation in the products in this market could not ucts, etc., are taking place all the*
United States of a convertibility be so successful all at once as to time and such adjustments are

be

n? chance of permanent cnovertibility unless production in the

our

would

we

could

one

,

supported.

must

nearly in balance,

legislation we have
quotas
on
agricultural

in
imposed
•ever,

exports,

our

change ot would certainly cause considerP01^- b order to cope with this able unemployment in many inProblem it will be necessary for dustries in this country.
thf financially strong countries to
The really constructive way we
establish convertibility funds sub- can do most to help solve the
stantial enough to support the problem of balancing internacentral banks of financially tional trade accounts without the
weaker countries while their gov- continuation of our grants-in-aid
ernments are taking the initial out of the taxpayers' pocket is to
steps toward free convertibility, import more from abroad. It will
Tbe United States is the only be granted that even if there were
lar£e country in a sufficiently no barriers to greater imports, the

cies

It

more

discrim-

restrictions and

in

imports and the other considered

our

to permit a decline in

exports,

reductions

-n

runs

in

mini-

a

.-

which will come with

courage

is

Through Congress, how-

of

with

their currencies

trade

however,

our

ex-

the

plished

codvertible [or current account deflationary forces not only in the under this new policy would repVnl,ess tbey, have amp*® 1rese^ves world, but within our own coun- resent only about 1%% of our
u6
temporary dislocations try. A reduction in our exports output of manufactured goods,

billion

and is very weak should not try to
spoken with
two
voices.
wa\k again until he is strong
Through our State Department aSain. How can he get strong if
and
before international bodies, be doesn't start to try to walk?
have

of

one

for this purpose. If such funds are eliminate the dollar deficit of for- which are sometimes painful but;
available, many believe little use eign countries at the least cost usually not fatal because they are
the British would have to be made of them, to the American taxpayer.
spread over several years. If care

fiave

we

to make

The

a

in

balancing

by

two main methods. One is to

this direction. Even against this
If we should be foolish enough
background most countries will to adopt a policy of reducing our

did in 1947 under the terms of the
Anglo-American loan and until

the

•artificial restrictions and with the
free world's currencies

from

international

our

achieved

As to the first point, some will
say
that it is foolish again to

cannot

only by freedom from

far

Policy in this country.

•expanding world trade which

can

too

in

in

be

can

their international payments, credits could be made available import deficit, if you prefer to type of economy. When new
There is a growing demand for a to foreign central banks. Many name it that way. It is believed, products come out of our laborar*
restudy of our own protectionist authorities agree that about ten however, that an increase in im- tories they challenge existing

contradictory.
Since
II,
the announced
policy of Washington has been an
WorldWar

toe achieved

as

everything
quickly as pos-

been

improve'

standard of living within

strictive

and

do

trenched, but outmoded, protectionist system and import more
goods from abroad.
The problem is too complex
for a ful1 analysis and discussion
at this time. As a consequence,
these two aspects of the problem
will be dealt wifh because in both
cases this country is in a position to initiate action, and the
time is ripe for action. Most of
the countries of Western Europe
have adopted sound monetary
and anti-inflatioary policies and

governmental controls over
imports, exports, prices, wages,
and, before one gets through, over
can

possible

should

already have taken steps

hesitate

sible to get the currencies of the

been

that

everything

We

world

-

another

(1)

OllvlCSa

•

balance

of *he necessity of such policies pand

and

DAUjiiiifi)

1 IdQ6

A

trade

45

by
way

tariff.
Such

.

,

policy should not be put
into effect without analyzing the
a

With Renyx, Held
(Special to the financial chronicle)

position of individual industries
SHREVEPORT, La.—Ivy A.
as regards their vulnerability to
Sweeney riS" now affiliated with
tariff reductions!'< In Sortie'-cases 'Renyx',«Field & Co., Inq.,
K

,

46

The Commercial and Financial Chronicle... Thursday, February

(930)

if I N DICATES

Now in

Securities
American
Jan. 5

stock (par one cent). Price—50 cents per share. Proceeds
—To drill wells. Office—Room 308, Texas Eastern Bldg.,

Shreveport, La. Underwriter—W. C. Doehler Co., Jersey
City, N. J.
•

Arizona Public Service Co.

Price—To

supplied

Boston Corp. and Blyth & Co.,
•

Atlanta Gas

Feb.

filed

11

Light Co.

25.

Proceeds—To

The

Price—To

bank

repay

company's

(par $10)

stock

common

stockholders at rate of

common

share for each 10 shares held

pire March

Inc., both of New York.

(3/5)

80,255 shares of

to be offered to

with

(par $5).

stock

common

by amendment.
Proceeds—To
capital expenditures. ; Underwriters—The First

finance

one

new

March 4;

rights to ex¬
supplied by amendment.
loans issued in connection
on

be

construction

Underwriters—

program.

First

and the

received

Boston Corp., New York; and Courts & Co.
Robinson-Humphrey Co., Inc., both of Atlanta,

March 10.

on

Charter Oil Co., Ltd., Calgary, Alta.
(3/3-4)
10 filed 900,000 shares of capital stock (par

Canadian).

Price—To be supplied

ceeds—For

expansion

Brothers and Bear,

Price—At

1958.

if Basalt Rock Co., Inc., Napa, Calif.
Feb. 13 (letter of notification) 6,000 shares of common
stock (par $1).
Price—$11.75 per share. Proceeds—To
Albert

George Steblow. Underwriter
Co., San Francisco, Calif.
\

Witter

Dean

—

&

Address—P.

O.

Box

1994,

Anchorage,

Alaska.

Under¬

:4.

New

Feb.

★ Basin Oil Corp., Evansville, Ind.
(letter of notification) 287,500 shares of common
stock (par 10 cents). Price—50 cents per share. Proceeds
—For working capital.

Office—419 Grein Bldg., Evans¬

ville, Ind. Underwriter—None,

Big Horn-Powder River Corp., Denver, Colo.
Jan. 30 (letter of notification) 565,220 shares of common
stock

(par 10 cents) being offered first for subscription
by stockholders at rate of one new share for each nine
shares

held

Price—25

of

as

cents

Feb.

6; rights to expire on Feb.
share.
Proceeds—For drilling

per

Office-^-702

penses.

Seventeenth

Ernest

28.
ex¬

and

Cranmer
Bldg., 930
Underwriter—None.

St., Denver, Colo.

amount.

(Ala.)

Feb.

stock

per

mingham, Ala.
Bristol

the

Board.

.

•

stock

(par

10

English Oil Co., Salt Lake City, Utah (3/4)
Jan. 5 filed 3,435,583 shares of common stock, of which
750,000 Shares are to be offered publicly, 250,000 shares
are to
be reserved for officers and key employees and
options, ^nd 2.435,583 shares in exchange for oil and gas
properties and interests therein. Price—At par ($1 per
share). ^Proceeds—For acquisition of additional proper¬
ties ancMeases.
Underwriter—J. A. Hogle & Co., Salt

cents).

Price—$1

per share.
Proceeds—
exploration expenses, to repay
working capital. Office—100 West 10th
St., Wilmington, Del. Underwriter—Charles J. Maggio,
Inc., New York.

acquire

leases,

for

for

and

Dallas Power &
16

March

filed

1,

1983.

Lake

Light Co.

$9,000,000

of

Proceeds

—

(3/24)
first mortgage bonds due
For construction program.

Underwriters—To be determined by competitive bidding.
bidders: Halsey, Stuart & Co. Inc.; Salomon

,<Bros.

& Hutzler; The Frist Boston Corp.; Lehman
Brothers; Kidder, Peabody & Co.; Equitable Securities
Corp.; Union Securities Corp.; Harriman Ripley & Co.,
Inc.
Bids—Tentatively scheduled to be received up to
noon (EST) on March 24.
' *

.

'

'

'

,'

'

'

'

North

be

to

holders.

offered

for

subscription

Price—At par

($10

Sept. 25 filed 1,000,000 shares of

stock

common

Price—Approximately 64.48 cents

per

share.

(par $1).

Proceeds—

To acquire leases and for corporate
purposes.
writer—None. To be named by amendment.

trust bonds

•

due Jan.

loans.

Underwriters—To

bidding.

Proceeds—For

Probable

Street Utica, N. Y.

Underwriter—None.

-

,

Inc.

—•

Boad, Portland, Ore. Underwriter—Standard Securities
Corp., Spokane, Wash.

(Gearhart

&

Otis,

Inc.

White

and

&

Co.)<

Co

(Lehman

outstanding notes and for drilling expenses and
working capital.
Underwriters
Dallas Rupe & Son.
Dallas, Texas; Carl M. Loeb, Rhoades & Co., New York;
and Straus, Blosser &
McDowell, Chicago, 111. Offering
—Postponed temporarily.

Bear,

Power

Co.

Feb. 9 filed $10,000,000 of first and
general mortgage
bonds, series U, due March 1, 1983. Proceeds—To refund
outstanding short-term notes and for new construction.
—

Probable

& Burr,

To

be determined
by

bidders—Halsey, Stuart

Pacific Northern
(Emanuel,

"

and

March

English Oil

Inc. and The

First Boston

Corp.

Stone

&

Boston

&

Co.;
Inc.)

K
-

CSTt

-noon

7,

Electric

:

Baird

,

&

Hot

Co.,

Maine Power

be

(Bids

First Boston

-Common

...Common

Co

&

Co.)

"

■■

Bonds

invited)

noon

Bonds

EST)

April 13, 1953

-

'

:

'.

be

South|fii
*'

1953

.;$f''
..Common

Corp.

and

Blyth

Common
&

Co.,

invited)

r

Preferred;
;[

noon

EST)

_____Bonds
•

April 15, 1953
Co.

/Bids LI a.m. EST)

"

May 12, 1953
Power

■f

Inc.)

•Gulf

—Common

—

Power
,'$/•

Bonds

Co
(Bids

Equip. Tr. Ctfs.
be

(Bids

§

I

_

;

EST)

Public Service Inc

::f

'

Chesapeake & Ohio Ry

11:30 a.m.

April 14, 1953

•

Bonds

invited

firieans

Bonds:

invited)

Ser. Co.——-Bonds &
(Bids

NeW

to be

:

"

'

EST)

noon

to

(Bids

(

Corp.)

Alabama

(Bids

■

,

April 7, .1953
& Light Co

t:\
Texal^Electric

_________Notes

The

March 12, 1953
Arizona Public Service Co
Boston

be

to

(Bids

&

to

invited)
.

i.;

__

Jackson

to be

•

•

Kehtui'ky Utilities Co.i————
Bonds

invited)

and

March 11,

First

"

■

;.fjlf/:
Florida Power

Common

i__

Shoppes, Inc....

(The

'

April 6, 1953

Bonds

&

Central & South West Corp..




;.

(Eids

Telephone Corp..

(.Bids

offices

A'

!

'

Brothers)

Credit Co

Webber,

'

Common,

California Electric Powrer Co

Co.___
to

't

& Co.)

27, 1953

March 31, 1953

:

.Common

Inc.)

Royalties, Inc

Narragansett Electric

all

H
;

_______

EST)

(Johnston,-Lemon

to

••.»

March

1953

a.m.

(Lehman

v<f-

1953

25,

(May be Smith, Barney

.

11

-

EST)

a.m.

Califbi'hia Electric Power Co

Curtis; Mitchum, Tully &
Co.; and Stone & Webster Securities Corp.)

Private Wires

'

...

Common
Co.)

Light Co

(Bids

American

Bonds

MerritfeChapman & Scott Corp.—
Common:
^ (Offering to stockholders—no underwriter)
;

1953

March 9,
River

*

*

EST)

noon

11

(Bids

North

invited)

„

¥

.

CSTt

(Goldman, :Sachs &

<( Paine,

Cleveland

be

24, 1953

and

Federal Paper Board Co., Inc

Fall

•.....

Common

Southern Indiana Gas & Electric Co—.—Common

Courts

(Bids-noon

General

San Francisco

"

i

.

.

Chicago & North Western RR.___.Equip. Tr. Ctfs. "

W.

»'

.

Bonds & Preferred

(Bids

.Common

Corp.;

(Bids

)

to

' (Bids

'

Robinson-Humphrey Co.,
Chicago & Eastern Illinois RR.___.Equip. Tr. Ctfs.

(Robert

*v

Light Co._

.

1953

The

March

)

Co.)

&

Georgia Power Co.__
Equip Trust Ctfs.

(Bids

Co.

&

EST)

noon

(Kidder, jPeabociy & Co.

Philadelphia

(Bids

Dallas Power &

Hqgle <fc Co)

(jointly);

Chicago

(Allen

March

Common

;

March 5,

Commercial

Pittsburgh

*

Co.)

4, 1953

Atlanta Gas Light Co.__
First

'

& Class A Stk.

Public Service Electric & Gas Co

March 10, 1953

Boston

Barney

March

(The

■'•,

be invited)

Common

Hayden,

New York Central RR

Central

New York

to

Co. o£ New Mexico.'.^—-Preferred

v.

'•v

Co._
(J. A.

Bonds
* '

EST) '

Oklahoma. ______-Bonds

March 18, 1953

Public" Service

Preferred

Co.

&

Bonds ;*;

invited)

noon

of

(Smith,

.

„

EST)

Airlines, Inc

Deetjen

competitive bid¬
& Co. Inc.; Cof¬

Co.

|

Co.)

&

New England Power Co
noon

to be

Common

Stearns

Lake Superior District Power Co,

(3/10)

Inc.;

Salompn

••

UnionjbUlphur & Oil Corp.__Debs.

EST)

a.m.

'•

.

,

(Bids

Public/Service

—

Maine

Co.

and

District Power Co

■

Indianapolis Power & Light Co.—______Bonds
(Bids 11:30

■

(Bids

_

and

(Bids

600 of

Co.

Mississippi Power & Light Co

/•

.

Common

-

Brothers

; "

(Bids

'

3, 1953

Charter Oil Co., Ltd

Byrd Oil Corp., Dallas, Tex.

fin

r.

(Poter W. Spiess Co.)

Oct 22 filed $1,750,000 of 10-year 5%% convertible sink¬

ing fund mortgage bonds due Nov. 1, 1962, to be offered
for subscription by common stockholders at
the rate
of $100 of bonds for each 28 shares of stock
held (for
a 14-day standby).
Certain stockholders have waived
their rights. Price—At par. Proceeds—To
repay $1,014,-

&

Stuart

&

March 17, 1953

Superior

Lake

w__-Debentures

^

Texas Oil Exploration

Jan. 12

ding.

-

|

1953

Central RR. of New Jersey___
Equip. Trust Ctfs.
■*-«
(Bids t4fbe invited)-

(Bids

Bunker-Chance Mining Co., Portland, Ore.
(letter of notification) 1,000,000 shares of class
B assessable stock. Price—10 cents
per share.
Proceeds
—For mining expenses. Office —6485 N. W. St. Helens

Halsey,

Stearns

Bear,

iSP'*

w

March 2,

March

Manufacturing Co.
(letter of notification) 15,000 shares of common
stock (par $1).
Price—At market.
Proceeds—To im¬
prove plant and for new machinery. Office—1821 Broad

Underwriters

bidders:

Lehmarr^Brothers,

$4,800,000 of bank
by competitive

repay

determined

be

NEW ISSUE CALENDAR

Under¬

Brunner

1, 1983. Proceeds—To redeem $2,-

%

Jan. 26

Central

i

000,000 of 3%% bonds and to

.

•

Co., Inc., Charlotte,

Light Co. (3/9)
Jan. 29 filed $6,800,000 of first mortgage and collateral

bty present stock¬

share).

per

Investment

Carolina.

Fall River Electric

if Daystrom Manufacturing Co., Chicago, III.
Feb. 17 (letter of notification) 14,000 shares of common
stock

;

.

Underwriter—Southern

.

.

City, Utah.

if F. & JF, Finance Co*, Inc., Hickory, N. C.
Feb. 16 (letter of notification) 36,998 shares of common
stock.
Price—$7.50 per share. Proceeds—For working
capital.Office—347 First Ave., N. W., Hickory, N:-C.

Probable

Cinerama,

Ltd., Toronto, Canada

Price—At market (about $16

(par $33/3).

,

Oils

Proceeds—

Underwriter—

Proceeds—To Charles Edison, Chairman of
Underwriter—Riter & Co., New York.
, ~

share).

Lead & Smelting Co., Inc.

Underwriter—Carlson & Co., Bir¬

share.

per

f3(letter of notification) 3,500 shares of class B

common

Coronado Copper Mines Corp.
Jan. 23 (letter of notification) 299,970 shares of common

Feb. 9 (letter of notification) 150,000 shares of preferred
stock (par $1) and 150,000 shares
of common stock (par
1 cent) to be offered in units of one share of each class
of stock. Price—$1.16 per unit. Proceeds—To
purchase

land and equipment.

Price—$1

cents).

films and working capital.

Stuyv|s$% F. Morris, Jr., & Co., New York.
£di4$jjfe(Thomas A.), Inc.

(3/10)

•

Birmingham

;

of notification) 150,000 shares of common

50

cb|f$f

For

Otis, Inc.,

Underwriters—Kidder, Peabody &
Boston Corp., both of New York.

First

fife

stock

working capital.
The

4$0$iier

Feb.

Proceeds—

filed $30,000,000 of senior notes due June 1,
Price—To be supplied by amendment. Proceeds—

and

Air Lines, Inc., common stock under

Doug Allan TV & Film Productions, inc.

24

For

SEC covering

amouiifeldebentures.

York; and White & Co., St. Louis, Mo.

1965.

Feb.

Feb. 12

principal

if Commercial Credit Co.

loans

writer—None.

Chica.^pfe Southern

by amendment. Pro¬

For working capital. Underwriter—Gearhart &

To

• Basic Building Products, Inc., Anchorage, Alaska
Feb. 9 (letter of notification) 100,000 shares of common
stock. Price—$1 per share.
Proceeds—To expand plant.

of

Lines, Inc., Atlanta, Ga.

mergerlpan at rate of $21 of debentures for each C. & S.
share./'debentures will be convertible into Delta com¬
mon
s-jf&ek- at rate of one share for each $35 principal

$1-

Stearns & Co., both of New York.

100%

Air

propose$frissue of $10,695,846 of 53/2% convertible de¬
benture/I subordinated) to be issued in exchange for

Cinerama, Inc., New York (3/2-6)
Feb. 4 filed $2,000,000 of 4% convertible debentures due

Co.

Georgia.

Delta

Feb. llr^/npany filed an application with

Underwriters—Lehman

program.

ISSUE

equipment. Office—2001-23 No. Parkside Avenue,
Chicago 39, 111. Underwriter—None.

'

Feb.

REVISED

new

Merrill

(3/12)

378,000 shares of

be

(jointly);
Lynch, Pierce, Fenner & Beane and White, Weld
& Co. (jointly); Harriman Ripley & Co., Inc.; Salomon
Bros. & Hutzler; Union Securities Corp. and A. C. Allyn
& Co., Inc. (jointly).
Bids—Tentatively expected to be

PREVIOUS

ITEMS

•

Blyth & Co. Inc. and Kidder, Peabody & Co.

Pipeline Producers, Inc.

(letter of notification) 599,000 shares of common

Feb. 16 filed

Registration

AD DITION S

SINCE

.

26, 1953

11

June

a.m.

EST)

9, 1953
Bonds.

Co
(Bids

11

a.m.

EST)

'

'

Volume 177

Number 5198

The Commercial and Financial Chronicle

...

'

„

Bros.

&

Hutzler

(jointly); Glore, Forgan & Co.; The
First Boston Corp., Estabrook & Co. and Stone &
Web¬
ster

-Gyro.dyne Co. of America, Inc.
350,000 shares of class A common stock
;Xpar $l,)^ io be offered for subscription
by stockholders

Corp.
(jointly).
Bids—Expected to be
received about March 9 at 11 a.m.
(EST) at 49 Federal

of record Dec.

22, 1952, on a pro rata basis; rights to ex¬
pire on. Feb., 28, 1953. The offering will include
50,000
shares to directors, officers and
employees of the com¬

Street, Boston, Mass.
Federal

Paper Board Co., Inc. (3/5)
filed 200,000 shares of common stock
(par $5).
Price—To
be supplied
by amendment.
Proceeds—To
certain
selling stockholders.. Underwriter
Feb.

13

—

Sachs &

Securities

Corp., Philadelphia,

Jan. 21

Pa.

.^Honolulu

First
Feb.

9

-.Feb.

First

Securities Corp.,

"4lot

■

capital

—

stock

(par $10).
For investment. Under¬

writer—D. J. St. Germain &
Co., Springfield, Mass.

1

33, Fla.

be

and

general

Proceeds—For

con¬

of

Underwriter—

it General Telephone Corp. (3/10)
19 filed 300,000 shares of
common stock
(par $20).
Price—To be supplied
by amendment. Proceeds—To in¬
crease investments in
subsidiaries.

Hutzler

on

March

Services, Inc., 20 Pine St., New

if Georgia Power Co

(3/24)
100,000 shares of cumulative preferred
par). Proceeds
For construction
program.
Underwriters—To be determined
by competitive bidding.
Probable bidders:
Blyth & Co., Inc.; Lehman
Brothers;
Morgan Stanley & Co.; The First Boston
Corp.; Union
Securities Corp. and Equitable
Securities Corp.
20

filed

(no

—

(jointly).

Bids—To be received
up to 11 a.m. (EST) on March 24
at office of Southern
Services, Inc., 20 Pine St., New
York 5, N. Y.

★ Global Oil & Drilling
Co., Inc., Wilmington, Del.
Feb. 16 (letter of
notification) 300,000 shares of common
stock (par five
cents). Price—$1 per share. Proceeds—
For drilling
expenses.
Office—100 West 10th
Street,
Wilmington, Del. Underwriter—Baruch & Co.,
Inc., New

York.

Grand Bahama
Co.,
Feb. 3 filed
$1,350,000

tible
of

20-year 6% first mortgage

debentures

class

Ltd., Nassau

due

March,

A

1973,-and

conver¬

1,565,000 shares

stock (par 10
cents). Price—Par for deben¬
$1 per share for stock. Proceeds
For new
construction. Business
Hotel and land

tures and

—

—

Underwriter—Gearhart
ir Great Lakes
Feb.

13

stock

$1).

Otis, Inc., New York.

Industries, Inc, Chicago, III

(letter of

(par

&

development.

notification) 18,000 shares
Price

—

$5

per

Dempsey & Co., Chicago, 111.,
Underwriter—None.

share.

the

of

common

Proceeds

selling

—

To

stockholder.

oil

New York.

oil

and

Israel

&

Co.,

and

Ida.

Un¬

McLeod, Young,

-

Statement ef¬

^

^

for

Israeli

.

>

enterprises and to purchase crude
for resale in Israel. Underwriter—

Corp., New York.

Industrial

&

Mineral

I

Development Corp.

Oct. 6 filed 30,000 shares of class A
stock.

($100

Price—At par

share). Proceeds—For industrial and mineral
development of Israel. Underwriter
Israel Securities
Corp., New York.
per

—

Israel Overseas
Corp. of New York
17 filed 16,000 shares of
capital stock par $1 and
$3,400,000 of 20-year debentures to be offered in units
of eight shares of stock
and $1,700 principal amount of
debentures. Price—$2,500 per unit.
Proceeds—For gen¬
eral corporate
purposes.
Underwriter—None.
Feb.

• Jefferson Lake Sulphur Co., New
Orleans, La.

Feb.

16

(letter of notification) 2,000 shares of common
(par $1). Price—At market. Proceeds—To
Roger
Barba, the selling stockholder.

stock

J.

but

James

will act

E.

as

Bennett

Underwriter—None,

&

Co., New York and

Furnace

&

Appliance

Co.

Feb.

17

stock.
real

45,900 shares of

par ($5 per share).
equipment.
Office

and

—

Building, Kalamazoo, Mich.
Kirk

Uranium Corp.,

common

Kalamazoo

Denver, Colo.

Feb. 6 (letter of
notification) about 900,000
capital stock (par one cent). Price—30 cents
Proceeds—For mining expenses. Office—405

Bldg., Denver 2, Colo.
Co., New York.

shares
per

of

share.

Interstate

Underwriter—Gardner &

Lake Superior District Power Co.
(3/7)
16 filed 29,761 shares of common stock
(par $20)
to be offered for
subscription by common stockholders
of record Feb. 25 on the basis of one
new share for each
nine shares
held; rights to expire on March 23. Sub¬
scription warrants are expected to be mailed on March
Feb.

7.

Price—To be supplied by amendment.

Underwriter—Robert W. Baird &
Co., Inc., Milwaukee, Wis.

Insurance Co., Dallas, Tex.
(letter of notification) 5,000
shares of capital
stock (par $10)
being offered for subscription
b,y stock¬
holders of record Feb. 11 on basis
of one new share
for each 35 shares
held; rights to expire on March 3.
Price—$50 per share. Proceeds—To increase
capital and
surplus. Address—P. O. Box
1771, Dallas, Texas. Under¬
writer—None.
19




Mid-Gulf Oil &

16

Superior District Power Co. (3/17)
$2,000,000 first mortgage bonds, series E,

ding.

ler

Proceeds—For construction program.
determined by competitive bid¬
bidders:
Halsey, Stuart & Co.

Inc.;

Bids—Bids

are

expected to

Mississippi Power & Light Co. (3/17)
Feb. 11 filed $12/1€0,000 of first mortgage bonds due 1983.
Proceeds—For construction program. Underwriters—To
be determined by competitive
bidding. Probable bidders:

Halsey, Stuart & Co. Inc., White, Weld & Co. and Kidder,
Peabody & Co. (jointly); Merrill Lynch, Pierce, Fenner
& Beane; Union Securities Corp.; The First Boston
Corp.
and W. C. Langley & Co. (jointly). Bids—To be received
up to
noon
(EST) on March 17 at Room 2033, No. 2
Rector Street, New York, N. Y.
• Motor-Inn, Inc., Wilmington, Del.
17 (letter of notification)
1,543 shares of capital
stock.
Price—At par ($100 per share).
Proceeds—For

Feb.

Building,

Wilmington,

Office—350 Delaware Trust

Del.

Underwriter—None.

Narragansett Electric Co.

(3/10)
Feb. 10 filed $10,600,000 of first mortgage
bonds, series
D, due March 1, 1983. Proceeds—To repay bank loans
and for new construction. Underwriters — To be deter¬
mined by competitive bidding. Probable bidders:
Halsey,
Stuart & Co. Inc.; Kuhn, Loeb & Co. and

Glore, Forgan
(jointly); Salomon Bros. & Hutzler; Kidder, Pea¬
body & Co. and Stone & Webster Securities Corp. (joint¬
ly); Lehman Brothers, and Goldman, Sachs & Co. (joint¬
ly); Union Securities Corp.; The First Boston Corp.;
White, Weld & Co.; Blyth & Co., Inc., and Harriman
Ripley & Co. Inc. (jointly). vBids—To be received-up to
& Co.

(EST)

noon

March 10 at company's office.

on

New England Power Co. S3J3)
Feb. 4 filed 80,140 shares of new cumulative
preferred
stock (par $100) to be offered for
subscription by present
holders of 6% preferred stock on a share for share

basis;

rights

to expire

March

amendment.

23.

Price

—

To

be

supplied by

Proceeds
For repayment of bank loans.
Underwriters—To be determined by competitive bidding.
Probable bidders: The First Boston
Corp.; Blyth &
—

Co.,

Inc.;

Harriman

Ripley

Bids—Scheduled
March

3 at 441

to

be

&

Co.

Inc.;

Lehman

received

up to noon
Stuart Street, Boston 16, Mass.

Brothers.

(EST)

on

Newton-Phoenix Oil Corp., Houston and New York
filed 2,500,000 shares of common stock
(par one
cent). Price—30 cents per share. Proceeds—To purchase
Feb. 3

land

and

Cohon
•

&

for drilling expenses.
Co., New York.

North American

Underwriter

Royalties, Inc.

Morris

—

(3/9-13)

*

16 filed 325,000 shares of common stock
(par $1).
Price—To be supplied by amendment. Proceeds—To re¬

Feb.

tire outstanding preferred stock and bank loans and for

working

capital.

Office—Bismarck,

N.

Dak.

,

Under¬

writer—Lehman Brothers, New York.
North

Pacific

Canadian).

*

Exploration, Ltd., Toronto, Canada

Price—$1

per

share (U. S. funds).

Proceeds

exploration costs.

Underwriters—Aetna Securities
Corp. and L. D. Friedman & Co., Inc., both of New York.
Northland Oils Ltd., Canada

Nov.

21 filed 1,000,000 shares of
capital stock (par 20
cents—Canadian) and subscription warrants for 600,000
shares, of which the stock and subscription warrants for
400,000 shares are to be offered in units of 100 shares

of stock and

subscription warrants for 40 shares. Price—

$52 per unit.

Proceeds—For drilling of additional wells
purchase producing wells. Underwriter—M. S.
Gerber, Inc., New York. Financing may be revised.

and

to

Nyal Co., Detroit, Mich.
Dec. 28 (letter of notification) 200,000 shares of common
stock

(par 10 cents).

Price—$1.25

per

share. Proceeds—
Underwriter—

To repay loans and for working capital.
Gearhart & Otis, Inc., New York.

Overland Oil, Inc., Denver, Colo.
23 filed 300,000 shares of common

Dec.

stock (par 10
Price—20 cents per share. Proceeds—To make
geological survey of land. Business—Oil and gas explor¬

cents).

ation. Underwriter—None.
Pacific

Feb. 5 filed 442,098 shares of

common

stock

ing offered for subscription by

common

record

Feb.

new

shares

held;

share.

21

at

rate

rights

to

one

expire

Proceeds—To

Underwriter—Merrill
York.

of

Feb.

March

increase

12.

capital

Lynch, Pierce,

11

$3

per

Airlines,
(3/3-4)

Inc.,

filed 360,000

shares of common stock (par $1).
supplied b,y amendment (probably around
share). Proceeds—For repayment of bank loans

Price—To

new

& Co.

and

be

equipment. Underwriters—Emanuel, Deetjen
Hayden, Stone & Co., both of New York.

(par $1) be¬

stockholders of

share

Northern

Seattle, Wash.

and

Maryland Casualty Co., Baltimore, Md.

New

Co., Jersey City, N. J.

•

be

Probable
Robert W. Baird & Co., Inc.
be opened on March 17.

per

share. Pro¬

per

ceeds—To acquire additional properties. Office—927-929
Market St., Wilmington, Del. Underwriter—W. C. Doeh-

filed

Underwriters—To

•

Refining Co.

Nov. 10 (letter of notification) 400,000 shares of common
stock (par five cents). Price—60 cents

due March 1, 1983.

Gulf

Jan.

amendment.

Proceeds—For

construction program.

Feb.

v

Price—$6 per unit. Proceeds—For work¬
ing capital. Business—Purchase, processing, refining and
sale of Fluorspar. Underwriter — To be
supplied by

Proceeds—For
710

Underwriter—None.

Trust

Offering—Date indefinite.

Feb. 4 filed 1,375,000 shares of capital stock
(par 25 cents-

Manufacturing

Price—At

estate

Christie &

class of stock.

—For

(letter of notification)

(par 25

Mex-American Minerals Corp., Granite City, III.
Nov. 3 filed 113,000 shares of 6% cumulative
preferred
stock (par $5) and
113,000 shares of common stock (par
10 cents) to be offered in units of one share of each

Chicago,

agent.

ic Kalamazoo

Lake

Co.,

Proceeds—For

New York and Toronto.

oil products

Israel Securities

Grand

Junction, Colo.
:.p
(letter of notification)
300,000 shares of common
stock (par 10
cents). Price—$1 per share. Proceeds—For
acquisitions and working
capital.
Office —U. S. Bank
Bldg., Grand Junction, Colo.
Underwriter—IsraM &

share.

per

% Oct. 29 filed 49,500 shares of common
stock. Price—At
par ($100 per share). Proceeds—To finance
purchase of

if Great Western Uranium
Corp.
Feb. 12

cents

Ispetrol Corp., New York

crude

(EST)

Price—15

Underwriter—B. V.

construction of motor court.
com¬

fective Feb. 25.

(3/224)

(jointly); Morgan Stanley & Co.; Harriman
Ripley & Co.

Feb.

stock.

Weir, Inc., both of

filed

$16,000,000 of first mortgage bonds due
April 1, 1983. Proceeds—For construction
program. Un¬
derwriters—To be determined
by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Lehman
Brothers; Kuhn, Loeb & Co.; Blyth &
Co., Inc. and
Kidder, Peabody & Co. (jointly); The First Boston
Corp.;
Union Securities
Corp. and Equitable Securities
Corp.
(jointly); Shields & Co. and Salomon Bros. &

stock

1983.

Underwriters—

program.

Offices—Toronto, Ont., and Edmonton, Alta.

Underwriters—Paine,

N. Y.

construction

derwriters—Wood, Gundy

Webber, Jackson & Curtis, New York and
Boston;
Mitchum, Tully & Co., San Francisco, Calif., and Stone
& Webster Securities
Corp., New York.

a.m.

& Light (3/3)
$10,000,600 first mortgage bonds due

filed

Feb. 6 filed 1,500,000 shares of
capital stock (par $5) to
be offered for
subscription by stockholder of record Feb.
26.
(Imperial Oil Ltd. owns 33.36% and Canadian Gulf
Oil Co. 10.01% of the
outstanding stock.) Price—To be
supplied by amendment. Proceeds—For new
construc¬
tion.

Feb.

WHitehall 3-2181.

filed

mining- expenses. Office—507 Bank
St., Wallace,
Underwriter—Mine Financing, Inc.,
Wallace, Ida.
•
Interprovincial Pipe Line Co. (Canada)

Co., Boston, Mass.)
at $2.78 per share and
resold by them to
key employees
at $3 per share. Office—405
West First St.,
Boston, Mass.
Proceeds—For working capital.

York 5,

9

mon

common

(no par), of which 15,025 shares are to be
issued
options held by officers of the
company
at $3 per share and 9.975
shares are to be offered to the
Underwriter (William S. Prescott &

Bids—To be received
up to 11
24 at office of Southern

Shoppes, Inc., Washington, D. C.

Inspiration Lead Co., Inc., Wallace, Ida.
(letter of notification) 2,000,000 shares of

stock

Inc.

25,000

Jan. 26

upon exercise of

Co.

own-

and

by competitive bidding. Probable bid¬
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; Union
Securities Corp.; W. C.
Langley & Co., White, Weld & Co.
and Shields & Co.
(jointly); Lehman Brothers, Goldman,
Sachs & Co. and The First Boston
Corp. (jointly); Hemp¬
hill, Noyes & Co. and Drexel & Co.
(jointly); Equitable
Securities Corp. Bids—To be received
up to 11:30 a.m.
(EST) on March 3, at Room 3250, 120
Broadway, New
York, N. Y.

Business—

if General Alloys Co., Boston, Mass.
Feb. 16 (letter of
notification) 25,000 shares of

20

incentive and stock

an

To be determined

expansion

purposes.

Manufacture and sale of food products.

Georgia Power

Corp.
$1,250,000 in

ders:

cumulative

corporate purposes.

prototype coaxial heli¬
L. I., N. Y. Underwriter—

James,

stock

—

Houston, Tex. Dealer Relations Representative—Georga
A. Searight, 50
Broadway, New York, N. Y. Telephone

of

Indianapolis Power

Dittmar & Co., San
Antonio, Tex.

Feb.

—

common

Price—$2 per share. Proceeds
For drilling of
exploratory wells, acquisition of leases and for general

Oil

filed

Proceeds—For

Underwriter—None.

corporate

share.

June 12 filed 10,000,000 snares of

cents).

which

•

(par $7.50), of which 85,000
publicly and 30,000 shares to
public, $10 per share; to em¬

offered

employees.
Price—To
ployees, $9 per share.
business

f7

Feb.

\

will

payment
Proceeds
For

company, for working capital, etc. Underwriter—John¬
ston, Lemon & Co., Washington, D. C.

Address—P. O. Box 456,

Frito Co., Dallas, Tex.
Jan. 26 filed 115,000 shares of 70-cent
vertible preferred stock

in

Proceeds—To

if Florida Opportunity Bulletin,
Inc., Miami, Fla.
(letter of notification) 200 shares of 6% cumula¬
tive preferred stock
(par $500). Price—At par ($500 per
share). Proceeds—For working capital to
equip editorial
Feb. 16

office and expand the Bulletin.
Coconut Grove, Miami

firms

(3/10)
229,880 shares of common stock (par
$1),
195,880 shares are to be sold publicly for the
account of three
selling stockholders, and 34,000 shares
by the company of which 16,000 shares will be offered
to public and
18,000 shares to employees of the company.
Price—To be supplied by amendment.
of

Springfield Corp., Springfield, Mass.

2o,ouu shares of
Price—At market. Proceeds

shares

24

Feb.

filed

per

and

ership^plan for employees of corporation
>/:sh^s- of capital stock. Underwriter—None.

for-

—

individuals

Price— $5.75

copter, .Office—St.
None.

—

Underwriter

certain

engineering and construction

(letter of notification) 600,000 shares of common
(par one cent) which includes 22,190 shares
being
reoffered to the previous purchasers. Price—25
cents per
share. Proceeds
For expansion of business and

Philadelphia, Pa.

to

for services.

Goldman,

stock

working capital.

and

pany

Co., New York.

First

McCarthy (Glenn), Inc.

,-^0^.^13 filed

Securities

47

(931)

v

for

each

Price
and

Fenner

&

—

2V2

$23

surplus.

Beane,

Paley Manufacturing Corp., Brooklyn, N. Y.
(letter of notification) 99,000 shares of common
stock
(par 25 cents). Price—$3 per share. Proceeds—
For expansion and working capital. Underwriter
G. K.
Shields & Co., New York.
Jan. 16

Continued

on

page

48

(932;

Continued

from

Underwriter

47

page

Aug. 20 filed 3,000,000 shares of

capital stock. Price—

share). Proceeds—To drill six wells
subleased land and for other corporate purposes. Un¬

commission
basis (selling commission is two cents per share). Of¬
fice—c/o Nevada Agency & Trust Co., Inc., Cheney Bldg.

derwriter—None, with sales to be made on a

N.

139

$500 each). Proceeds —To reduce bank loans and for
working capital.
Underwriter — City Securities Corp.,
Indianapolis, Ind.

Virginia St., Reno, Nev.

Trans Caribbean Airways,

if Paragon Optical Co., Inc. (Puerto Rico)
Feb. 16 (letter of notification) 300,000 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—

(letter of notification)
common stock
(par 10 cents).

Feb. 3

Concessions Co.,

Peruvian Oil

Jan.

9,000,000 shares of common stock (par

16 filed

stock

(no

share).

per

stockholder.

Underwriter—Alex.

& Sons,

Brown

Balti¬

filed

26

warrants
reserved

five

and

stock purchase
and 40,000 shares of capital stock
(par $1)
for issuance.
Price—$10 per share for stock
40,000

for

cents

in oil and

shares

the

Proceeds—To

engage

Wash.

rick &

Proceeds — For
Fourth Ave., Seattle 1,

★ Pyramid Oil & Gas Corp., West Palm Beach, Fla.
17 (letter of notification) 7,000 shares of common

'

Price—At market.

if. Raleigh Investment Co., St. Louis, Mo..
Feb. 18 (letter of notification) $85,050 of first mort-.
gage serial notes (on Sir Walter Raleigh Apartments),'
maturity extended to Nov. 1, 1957. This is a part of
original issue of $198,500 principal amount of said notes.
Office—3664

Washington

Blvd.,

St.

Louis,

Silver States Oil &

Feb. 9
stock

To

Gas

(letter of notification) 289,500 shares of common
10 cents). Price—$1 per share. Proceeds—;
wells.
Underwriter—Hunter Securities Corp.,
<

West Coast

curities Corp., both of New York.

South Carolina Electric & Gas Co.

the

Spring of 1953.

Jan. 28 filed 358,045 shares of common stock (par $4.50)

•

at rate

ivlth

of

to
one

common
new

stockholders

share for each

of

seven

record

Jan. 28 (letter

of outstanding common stock subject to allotment; rights
to expire on March 4. Price—$12 per share. Proceeds—
construction

program.

Underwriter—Kidder,

Del.
(letter of notification) 300,000 shares of common
stock (par 5 cents).
Price—$1 per share. Proceeds—To
Office—100

West

par),

Feb. 27. American Telephone & Telegraph Co.,

New York 7,

Prospective Offerings

Oil Corp., N. Y.
(letter of notification) 6,000 shares of common
stock (par five cents). Price—$2.25 per share. Proceeds
—To compensate underwriter for services. Underwriter

Jan. 28 it was

—Jacquin, Stanley & Co., New York.

of

Alabama Power Co.

(jointly); Coffin & Burr, Inc.; A. C. Allyn & Co.,
Stearns & Co. (jointly); Harriman Ripley

& Co., Inc.

(3/2)

Central RR. of New Jersey

expected to be received by this company on
purchase from it of $2,460,000 equipment
trust certificates.
Probable bidders:
Halsey^ Stuarti&;
Bids

are

March 2 for the

Inc.; Salomon Bros. & Hutzler; Kidder,

Price—At

and

sell

additional shares of its common stock

606,084

(par $5), to be offered for subscription by stockholders
of record Mar. 11 in the ratio of one new-share for each
14 shares held.

of

Proceeds—To purchase additional shares

stock

common

in turn will

use

of its four principal subsidiaries,

the funds to pay

improvements.
Underwriters—To be determined
competitive
bidding.
Probable
bidders: Merrill
Lynch, Pierce, Fenner & Beane; Lehman Brothers and
Lazard Freres & Co. (jointly); Blyth & Co., Inc., Smith,

by

are

& Co.

& Hutzler.

Inc.; Kidder, Peabody & Co.; Salomon Bros.
" ';

shares

of

(3/5)
332 So. Michi¬

Bids will be received by the company at

Chicago 4, 111., up to noon (CST) on March
5 for the purchase from it of $2,100,000 equipment trust
certificates, series J, to be dated March 1, 1953 and to
mature in 30 equal semiannual installments from Sept. 1,
1953
to
March
1, 196*8, inclusive.
Probable bidders:
Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler; R.
W. Pressprich & Co.; Kidder, Peabody & Co.
gan Avenue,

(3/5)

400 West Madi¬
(CST) on March 5
purchase from it of $8,400,000 equipment trust
certificates to be dated April 1, 1953, and to mature in
St., Chicago 6, 111., up to noon

$18,000,000 first mortgage bonds due 1983.

Proceeds—

No matter how you
Some

only

Stuart & Co. Inc.; Blyth & Co., Inc., and Kidder,
Peabody & Co. (jointly); Morgan Stanley & Co.; Kuhn,
Loeb & Co.; Union Securities Corp., Equitable Securities
Corp. and Drexel & Co. (jointly); Lehman Brothers; *
The

First

Boston

Corp.;

Registration—Planned

Laboratories, Inc., Houston, Tex.
(letter of notification) 10,000 shares of class A
stock, 1,900 shares of common stock and 5,400

a.m.

4

company

At

to

May 12.

Texas Oil

Exploration Co., Ft. Worth, Tex. (3/2)
(letter of notification) 1,200,000 shares of com¬
stock (par 10 cents). Price—25 cents per share. Pro¬

when

Sorg. quality is consistently

As

announced that company plans to sell

while

meeting

deadline.

your

specialists

in

fincncial,

and legal printing,
handle design, printing

corporate
we

(both letterpress and offset),

derwriting group. Proceeds—To be used for expansion,
working capital and other corporate purposes. Under¬
writer—Morgan Stanley & Co., New York.

None.

think they

compromise

maintained

publicly not in excess of $200,000,000 principal amount
of long-term sinking fund debentures through an un¬

stock. Price—$10 per share. Pro¬
general corporate purposes. Underwriter—

standpoint of

the

they're faced with a rush job.

Harriman Ripley & Co., Inc.
April 10. Bids—Tentatively
on

people look at printing
irom

have

for

(EST)

look at it.

quality; others

Allied Chemical & Dye Corp.
Feb.

preferred

ceeds—For

Inc. (jointly).

Chesapeake & Ohio Ry. (3/12)
Bids are expected to be received by the company on
March 12 for the purchase from it of $7,950,000 equip¬
ment trust certificates.
Probable bidders: Halsey, Stu-

(5/12)

reported company plans issuance and sale

expected at 11
11

who

for property additions

and

sey,

Underwriter—None.

binding, mailing.
Our service

is

complete.

Dec. 5
mon

ceeds—To drill oil and gas wells and for acquisition of

properties. Underwriter—Peter W. Spiess Co.r New York
Texas

-

Western Oil

Co., Houston, Tex.

Nov. 12 (letter of notification) 100,000 shares of commor
stock (parJO cents). Price—50 cents per share. Proceed!
For working capital. Office—1 Main




St., Houston, Tex

Aluminium
,

,

•

if Central & South West Corp. (3/11)
Feb. 23 company applied to SEC for authority to issue,

Taylor

common

v

•

construction program. Underwriters—To be deter¬
mined by competitive bidding. Probable bidders:
Hal-

writer—None.

Feb.

Peabody 8c

Co.

For

★ Sunland Oil Co., Yakima, Wash.
Jan. 30 (letter of notification) 40,000 shares of common
stock. Price—At par ($1 per share). Proceeds—To drill
wells. Office—326 Miller Bldg., Yakima, Wash.
Under¬
•

& Co.

for the

9

Proceeds—For investment.

Probable bidders: Blyth &

son

Stanwood

market.

this

of Central Maine Power Co. common stock.
Co., Inc. and Kidder, Peabody

its holdings

Chicago & North Western Ry.

N. Y. Underwriter—None.

10th

if Stein Roe & Farnham Fund, Inc.
Feb. 18 filed 200,000 shares of capital stock.

plans sale later

company

Bids will be received by the company at

St., Wilmington, Del.
Underwriter—Charter Securities Corp., New York.
Feb.

reported

general corporate purposes. Office—195 Broadway,

and

Standard Petroleum Corp., Wilmington,

was

Chicago & Eastern Illinois RR.

of notification) 2,007.8 shares of common

parent, will subscribe for an additional 1,047,992.2
shares. Price—$40 per share. Proceeds—For expansion

Feb. 9

well.

on

it

of $10,000,000 common stock (in addition to $10,000,000 of first and general mortgage bonds, see above)
after distribution by New England Public Service Co. of

.

the

Pea-

body & Co., New York.

drill

(no

expire

subscription privileges (including sub¬
scription privileges for holders of less than seven shares

For

Offering—Expected in

being offered for subscription by
minority common stockholders of record Feb. 4 at rate
of one new share for each 10 shares held; rights to

stock

additional

2

,

Barney & Co. and Harriman Ripley & Co.,

Western Electric Co., Inc.

Feb.

shares held,

Jan.

6.

Power Co.

year

Co.

N. J.

Pipe Line Co., Dallas, Tex.
Nov. 20 filed 1,125,000 shares of common stock (par 50
cents). Price—To be supplied by amendment. Proceeds
—Together with other funds, to be used to build pipe¬
line. Underwriters—White, Weld & Co. and Union Se¬

(par

Maine

Central

Inc. and Bear,

West Coast

Corp., Shelby, Mont.

New York.

18

Inc., New York.

fering—Expected in the Spring of 1953.

drill

being offered

scheduled to be received on April

000,000 first 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. Of¬

Mo. Under¬

the sale

Halsey,

tional shares of common stock and private sale of $55,-

writer—None.

proposes

Merrill

15, 1964, and 580,000 shares of common stock (par 50
cents) to be offered in unit£ of one $50 debenture and
one share of stock.
Price — To be supplied by amend¬
ment. Proceeds—From sale of units and 1,125,000 addi¬

—None.

company

Stuart & Co. Inc.; Salomon Bros. &
Lynch, Pierce, Fenner & Beane and
Dean Witter & Co. (jointly); Kidder, Peabody & Co.;
Blyth & Co., Inc.; Lehman Brothers. Bids—Tentatively
bidders:

Hutzler;

Pipe Line Co., Dallas, Tex.'
Nov. 20 filed $29,000,000 12-year 6% debentures due Dec.

Proceeds—To
Carl M. Brukenfeld, the selling stockholder. Underwriter
10 cents).

announced

was

$8,000,000 of first mortgage bonds. Proceeds—To re¬
pay bank loans and for new construction.
Underwriters
—To be determined by competitive bidding.
Probable

shares of capital stock. Price—At
Proceeds—For investment. Underwriter—None.

market.

March 31.

(4/6)

Power Co.

of

Address—c/o Phillips

Inc., Camden,

it

29

Jan.

New( York.

Fund,

Co. (jointly); Lehman Brothers. Bids

Electric

California

Feb. 17 filed 2,000,000

Feb.

(par

Co., Inc.,

^Wellington

Underwriter—None.

stock

and J. A. Hogle &

13 months to purchase

capital.

Blyth & Co., Inc.; Kidder,

—Tentatively scheduled to be received on

if Victoreen Instrument Co.
Feb. 12 (letter of notification) 15,000 shares of common
stock (par $1).
Price—At market (approximately $5.25
per share). Proceeds—To E. A. Benson and R. F. Shima,
the two selling stockholders. Underwriter—Barrett Her-

$125 per share.

Office—2124

working

Mortimer B. Burnside & Co.,

if Public Service Underwriters, Inc., Seattle, Wash.
Jan. 29 (letter of notification) 2,396 shares of common
stock to be offered first for subscription by present
capital.

right after

bidders:

Peabody & Co.; Merrill Lynch, Pierce, Fenner & Beane
and Dean Witter & Co. (jointly); Union Securities Corp.

Avery, One Wall St., New York, N. Y. Underwriter—

&

chain, sprockets, gears, etc. Office—Longview, Tex. Underwriter—Dallas Rupe & Sons, Dallas,
Texas: and Straus, Blosser & McDowell, Chicago, 111.

working

deferred

Proceeds—For

transmission

—

class

Probable

bidding.

prior to Dec. 31, 1957, one share of stock upon payment
of $3.06per
share), to be offered in units of one
common share and 2%
warrants. Price—$2.29 per unit.

Powers Manufacturing Co.
Sept. 25 filed 250,000 shares of common stock (par $1),
<later amended to 400,000 shares). Price—$2 per share.
Proceeds—For machinery and equipment and new con¬
struction.
Business—Production of heavy duty power

Price

the

holder

>^o„ New York.

stockholders.

Office—
Underwriter—None.

Feb. 17 (letter

Underwriter—Morris Cohon &

and sell

shares of common stock (par $1).
repay bank loans and for new construct
Underwriters—To be determined by competitive

tion.

if United States Air Conditioning Corp.
of notification) 100,000 shares of common
stock (par 10 cents) and warrants to purchase 250,000
additional shares of common stock (ea£h warrant giving

common

warrants.

business.

gas

of

(3/31)

announced company plans to issue

additional

136,249

Co., New York.

Phoenix-Campbell Corp., New York

Jan.

of

was

Securities Corp.,

Union

and

Beane

Proceeds—To

A non-voting stock
account of certain sell¬
ing stockholders. Price—To be supplied by amendment.
Proceeds—From sale of debentures, to pay notes and for
working capital, etc.
Underwriter—Smith, Barney &
shares

101,000

&

California Electric Power Co.
Jan. 29 it

(par $1), the latter to be sold for

market

Md.

more,
:

Price—At

and

1978

shares of common
(approximately $6
Proceeds—To Theodore Phillips, the selling

par).

Price—At market (about

Pierce, Fenner
(jointly).

if Union Sulphur & Oil Corp., Houston, Tex. (3/17)
Feb. 25 filed $10,000,000 of sinking fund debentures due

Phillips Packing Co., Inc.
2 (letter of notification) 3,000

Feb.

Inc., N. Y.
20,000 shares of Class A

Virginia St., Reno, Nev.

No.

139

Probable bidders: Halsey, Stuart &

Inc.; Lehman Brothers and Stone & Webster Secu-~
Corp. (jointly); The First Boston Corp.; White,
Weld & Co., Blyth & Co. Inc., Equitable Securities Corp.,
and
Central
Republic Co.
(jointly); Merrill Lynch,'

mining operations.

struction and equipment for

issue and sell,

may

company

rities

Price

stock.

& Light Co.

announced

was

Co.

(letter of notification) 200,000 shares of common
— $1
per share.
Proceeds — For new con¬

Feb. 12

$1).

Price—$1.10 per share. Proceeds—For general corporate
purposes. Business—Plans to produce and sell petroleum
and its products from lands to be held under concession
from the Peruvian Government.
Underwriter—None.

it

competitive bidding.

President,
the selling stockholder.
Underwriter—Gearhart & Otis,
Inc., New York. No general public offer planned.
if Travertine Products Co., Inc., Reno, Nev.

Inc., Dover, Del.

2

probably in June, 1953, about $18,000,000 of first mort¬
gage
bonds.
Proceeds—To repay bank loans and for
new construction.
Underwriters—To be determined by

Proceeds—To O. Roy Chalk,

$2.75 per share).

operating capital. Office—161 Munoz Rivera Ave.,
Ilato Reyt Puerto Rico.
Underwriter—Degaetano Secu¬
rities Co., New York.

For

Power

Arkansas

Feb.

week or two.

if Thomas & Skinner Steel Products Co., Inc.,
Indianapolis, Ind.
Feb. 16 (letter of notification) $250,000 of 5M>% first
mortgage convertible sinking fund bonds. Price—At par
and accrued interest (in denominations of $1,000 and

At par (10 cents per
on

a

•

& Co., Inc., New York

Scott, Khoury

—

Offering—Expected in

Valley Oil Co., Reno, Nev.

Paradise

•

February 26, 1953

The Commercial and Fi-nancial Chronicle... Thursday,

48

Ltd.

12 it was reported company may be in the market
spring with a financing program to raise about $40,000,000. A l-for-10 offering of common stock (about

Feb.
this

818,658 shares) is said to be under study. Proceeds—For
expansion program. Underwriters — The First Boston

Corp, and A. E. Ames & Co., Ltd., acted as dealer-man¬
in October, 1951, stock offering to stockholders/A

agers

SORG

PRINTING CO., Inc.

811 SOUTH ST.,

S'infmcial; f£e^al,

KEIV VOBK 18, N.T.

fShin&rM

Volume 177

Number 5193

.

.

The Commercial and Financial
Chronicle

.

(933)
15 equal annual instalments from April
1, 1954, to
inclusive. Probable bidders:
Halsey, Stuart & Co.
Salomon Bros. & Hutzler.

1968,

if High Voltage Engineering Co.,
Cambridge, Mass.

Inc.;

Feb. 18 it

reported company plans early registration
of $800,000 4%-6%
convertible subordinate debentures
due 1967 and
20,000 shares of common stock to be offered

Cinerama
Jan. 9 it
of

Productions Corp.
reported company plans issuance and sale
500,000 shares of common stock. Price—Ex¬

in units of

was

about

pected to

be around

$10

per

share.

it

17

announced

was

2-for-l

split

stock

Feb.

Inc., N. Y.

be

and

for

construction

determined
For

by

11

tional

it

»

on

to
of

share

;

.First

sible
:

,

that

stock

common

may

retire

authorizing the

loans

and

to

meet

April

on

vote

23

it

on

company plans to issue and
23,698 additional shares of capital stock (par $25) to
on
a
l-for-5 basis, subject to their
ap¬
proval on Feb. 25. Proceeds—To repay

7

it

Power &

(4/7)

/<

To

determined by competitive bidding.
Halsey, Stuart & Co. Inc.; Kuhn, Loeb
Co.; Harriman Ripley & Co., Inc.; Lehman
Brothers;
The First Boston Corp.; Merrill
Lynch, Pierce, Fenner
& Beane; Harriman
Ripley & Co. Inc.; White, Weld
& Co.
Bids—Expected at noon (EST) April 7. Regis¬
tration—Tentatively planned for March 2.
Probable bidders:

General Public Utilities Corp.
and

11

it

sale

reported

was

this

summer

stockholders

common

on

company is
of additional
a

planning issuance
common

stock

to

l-for-15 basis.

Pierce, Fenner & Beane acted

as

Merrill, Lynch,
clearing agent in last

stock offer.

(6/9)

was

construction

program.

Underwriters—To be de¬

termined

by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co.; The First
Boston Corp.; Kidder,
Peabody & Co. and White, Weld
<& Co. (jointly); Merrill Lynch,
Pierce, Fenner & Beane,
Salomon

Bros.

&

Hutzler

and

Drexel

&

Co.

(jointly);

Union Securities Corp.; Equitable Securities
Corp.; Leh¬
man Brothers.
Registration—Planned for

May 8. Bids—

Tentatively expected at 11
Gulf

States

Utilities

a.m.

(EST)

on

June 9.

of first

mortgage bonds later in the

year.

Proceeds—For

construction program, expected to cost between
$26,000,€00 and $28,000,000 this year. The exact
amount of the
bond offering has not yet been determined.
Under¬
writers—For common stock to be determined
by compet¬
itive bidding. Probable bidders: Merrill

'

for

a

Inc., Chicago, III.
reported company has applied to the CAB

certificate

of

convenience

covering service from
Detroit to Cleveland, and also in
Chicago, where the
company is now operating a mail pick-up service in sub¬
urban

towns.

Underwriter—May be Cruttenden

Chicago, 111.




&

Co.,

.

of

first

new

•

Public Service Inc.
(4/14)
reported company plans to sell

mortgage

bonds

due

about

1983.

Pro¬

construction.

Underwriters—To be de¬
by competitive bidding.
Probable
bidders:
Stuart & Co. Inc.; Lehman

termined

Halsey,
Peabody & Co.

(jointly);
Corp.

Bids

to

up

Brothers;

and

Stone

&

Webster

Equitable Securities

noon

Tentatively

—

(EST)

Kidder„
Corp.

Securities

Corp.; Union

scheduled

Securities

be

to

received

April 14.

on

•

*

New York Central PR.
Bids will be received

(3/4)
by the company in New York

it

Power

was

&

Light Co.

announced company

may

issue and sell

stock

on

basis of

one

new

share for each

1954

from

to

1968, inclusive. Probable bidders:
Inc.; Salomon Bros. & Hutzler.

Halsey, Stu¬

art & Co.

Northern Natural Gas
Co., Omaha,

Feb.

4

filed

amended

an

*

•

Neb.

application with FPC for

thority to construct pipeline facilities to cost
mated
$66,248,000 (compared with previous
covering

$69,826,000).

au¬

esti¬

an

request *

This

would include about 425
Probable bidders for
$40,000,009
of debentures or bonds:
Halsey, Stuart & Co. Inc.; Blyth:
& Co., Inc.; The First Boston
Corp. and Kidder> Peabody
& Co.
(jointly). Common stock

miles of main pipeline.

be

done via.

rights.

financing will probably

'

sidering authorizing

''

'

'

"

'

>?*'

'

•

directors

were

con¬

offering of a sufficient numbed of
stock (par
$7.50) to raise $4,follow proposed
stock
split of
present authorized
1,639,884 shares of $15 par value into
3,279,768 shares of $7.50 par value. Proceeds
would-be

shares

of

new

000,000.

an

common

This

would

Under¬

program.

by competitive
biddings^ *
Peninsular Telephone Co.
Jan. 27 it was announced
company plans to offer < for
subscription by its common stockholders one
additidnai
share for each five shares
held (including the shares to
be issued
upon
payment
to common
stockholders': q€
record Feb. 9 of a
20% stock dividend). Prlce-r-Tftbev

named

later.

ditions

to

Proceeds—For

property.

Stanley & Co.,

new

construction

Underwriters

—

Coggeshall & Hicks

and

ad¬

May be

Morgan

G.

Walker

and

H.

& Co.

J'; »€

.

Feb. 11 it

five

up

noon
(EST) on March 4 for the purchase from it of
$9,375,000 equipment trust certificates to be dated
March
15, 1953, and to mature $625,000 each March
15

Pennsylvania Electric Co.
that

-

was

in June about
and

a

ruL*

reported company plans to issue andasel!

$12,500,000 first mortgage bonds ,due 1993

like amount later

on.
Proceeds—For constructions
Underwriters—To be determined by
competi¬
tive bidding.
Probable bidders: Halsey, Stuart &
Co.
Inc.; Kuhn, Loeb & Co.; Kidder, Peabody
Co.; The Firstt
Boston Corp.; Equitable
Securities Corp.
*/ ' ' ^
Pennsylvania Power & Light Co.

program.

!•;

Jan.

r->

.

23, Charles E. Oakes, President, announced that
financing this year will require the sale tpf from
$20,000,000 to $25,000,000 of first mortgage
bonds, with
total financing for the
four-year period running about
$65,000,000. If sold competitively, probable bidders
new

•

Metropolitan Edison Co.

Feb. 11

it

was

reported company plans to issue and sell

in

May about $8,000,000 of first mortgage bonds due 1983.
Underwriters—To be determined by
competitive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Kuhn, Loeb
&

Co.

and

Salomon

Bros.

&

Hutzler (jointly);
White,
Co.; The First Boston Corp.; Kidder, Peabody
& Co. and Drexel & Co.
(jointly); Harriman Ripley &
Co., Inc. and Union Securities Corp. (jointly).
Weld

&

was

and

Utilities, Inc.

sell

reported company may later this
year issue
$15,000,000 of additional common stock.

Proceeds—To repay bank
loans, etc. Underwriters—To
be determined by competitive
bidding. Probable bidders:
Blyth & Co. Inc.; Kidder, Peabody & Co. and
Merrill
Lynch, Pierce, Fenner & Beane (jointly); Lehman Bro¬

thers; The First Boston Corp.; Union Securities
Equitable Securities Corp. (jointly).

and

Monongahela Power
Dec.
sale

11

it

was

Corp.

Co.

Probable

be

bidders:

and

mortgage
by competitive
Stuart & Co. Inc.;

determined

Halsey,

W. C.

Langley & Co. and the First Boston Corp. (joint¬
Kuhn, Loeb & Co.; Kidder, Peabody & Co. and
White, Weld & Co. (jointly); Glore, Forgan &
Co.; Leh¬
man
Brothers; Equitable Securities Corp.; Union Se¬
curities Corp. and Salomon Bros. &
Hutzler (jointly);
Merrill Lynch,
Pierce, Fenner & Beane; Harriman Rip¬
ley & Co., Inc.
ly);

New

Jan. 22
on

to

England Electric System
it

was

announced

on

Feb.

24

will

stock from 8,500,provision to provide

common
on

a

in connection with
preemptive offerings to stockholders
that cash or full share
rights may be issued in lieu of

rights to fractional shares. Underwriters—To be deter¬
by competitive bidding. Probable bidders:
Blyth
& Co., Inc., Lehman
Brothers and Bear, Stearns & Co.
(jointly); Merrill Lynch, Pierce, Fenner & Beane, Kidmined

&

Co.;

y

Permian

Basin

Pipeline Co., Chicago, III.
.»
an amended application with
FPC
a
163-mile pipeline system at

Feb. 4 company filed
for

authority to construct

estimated cost of
$40,269,000. Probable underwriters
for convertible notes and
stock; Stone & Webster Secu¬
rities Corp.; and
Of

the

stock

Glore, Forgan & Co., both of New York-

of

this company,
Northern Natural Gas Co.
"

51%

is

owned

now

,

by

'

Public
Nov.

3

Service Co. of New

it

was

announced

Hampshire

company

sell

plans to

issue

anct

approximately $5,000,000 of bonds in May or
June,
1953, and in the latter part of 1953 to issue
sufficient

shares to raise about
$4,000,000. Proceeds—Toloans and for new
construction. Under¬
be
determined
by competitive
bidding.
Probable bidders: For
bonds, Halsey, Stuart & Co. Inc.;
The First Boston
Corp. and Coffin & Burr, Inc.
repay

bank

writers—To

(jointly)*

Kidder, Peabody & Co.; White, Weld & Co. For
stock*
Kidder, Peabody & Co. and Blyth &
Co., Inc. (jointly);
Harriman Ripley & Co. Inc.
/;
•

•

Public

Service

Co.

of

New

Mexico

(3/18)

-

Jan. 30 it was reported
company plans to issue and sell
30,000 shares of cumulative preferred
stock (par $100).
Price—To be named later.

Proceeds—For

tion, etc.

stockholders

increasing authorized
11,500,000 shares and

Boston

common

announced

company plans issuance
the middle of 1953 of
$10,000,000 first

near

may

include: Halsey, Stuart & Co.
Inc.; The First
Corp.; Equitable Securities Corp.; White, Weld
Smith, Barney & Co.

an

about

000

was

common

—

vote

Feb. 9 it

&

,

For

(with an oversubscription
privilege); rights
will expire on April 14. There are
presently outstanding
550,282 ($12.50 par) common shares,
including shares
reserved for scrip.
Proceeds
For working
capital
Underwriter—None.

Helicopter Air Service,

&

15

sale

bidders: Halsey, Stuart & Co.
Inc.; Salomon?"
Hutzler; Union Securities Corp. and White
Weld & Co.
(jointly); The First Boston Corp. and Kid¬
der, Peabody & Co. (jointly); Carl M.
Loeb, Rhoades &
Co.; Equitable Securities Corp.;
Kuhn, Loeb; & Co.^
Lehman Brothers and
Goldman, Sachs & Co. (jointly);
Merrill Lynch,
Pierce, Fenner & Beane. Offering—
Probably in May or June.
"
"
Bros.

used for, the
company's construction
writers will be determined

Lynch, Pierce,
(jointly); Stone
Webster Securities Corp.; Carl M.
Loeb, Rhoades & Co.

Fenner & Beane and Lehman Brothers

April 7.

announced

Underwriters—(1)

Louisiana

bidding.

Jan. 16, it was announced
company is planning to sell
$6,000,000 in common stock in June and a certain amount

on

the

bonds. Underwriters—To

Co.

received

company has established a
amount of $40,300,000
extending to
1953, to be refinanced by the issuance of new

1,

in

Feb. 3 it

reported company plans issuance and sale
of $7,000,000 of first mortgage bonds due
1983. Proceeds

—For

was

Middle South

Gulf Power Co.
Jan. 28 it

be

shares held

be

&

Feb.

it

credit

common

was

—

sell

"primary fights would be issued to common stockholders
of ' record March
27, 1953, to subscribe to additional

reported company plans to issue and sell
$15,000,000 of first mortgage bonds due 1983. Proceeds
—To pay bank loans and for new construction.
Under¬
writers

to

Merritt-Chapman & Scott Corp. (3/27)
7, Ralph E. DeSimone,
President, announced

It-n

Light Co.

expected

Jan.

shprt-terj^tyor-

Florida

Jan.

and

and

Probable

^Oklahoma Natural Gas
Co.;
Feb.. 24 it was announced that the

its stockholders

,

issue

competitive bidding
Halsey, Stuart & Co. Inc.; Kuhn, Loeb
Co., Lehman Brothers and A."C. Allyn &
Co., Inc.
(jointly); Blyth & Co., Inc.; White, Weld & Co. and
Shields & Co.
(jointly); Salomon Bros. & Hutzler; W.
C. Langley &
Co., The First Boston Corp., and
Glore,
Forgan & Co. (jointly); Merrill
Lynch, Pierce, Fenner
& Beane and
Kidder, Peabody & Co. (jointly); Harri¬
man
Ripley & Co., Inc.; Equitable Securities
Corp.

sell

.

may

&

(

rowings.

company

Probable bidders:

announced

was

reported

(4/7)

mid-year about $10,000,000 of first
mortgage bonds
Underwriters—To be determined by

Underwriter—None,

;Fitchburg Gas & Electric Co.
Jan.

15

Dec.

construction

14 will

Co.

Barney & Co.

be sold later in the year.

debentures.

new

was

in

bank

ap¬

a

two

company plans issue

$5,500,000 first mortgage bonds due 1983. Un¬
derwriters—To be determined
by competitive bidding.

•

-

Co.

Meeting—Stockholders

will follow

new

(jointly).

Light Co.

of about

stock, prob¬
ably Blyth & Co., Inc. and The First Boston
Corp
(jointly). (2) For preferred stock,
may be W. C. Langley & Co. (3) For bonds, to be determined
by competitive bidding.
Probable bidder$:
Halsey, Stuart & Co
Inc.; Blyth & Co., Inc. and The First Boston
Corp
(jointly); W. C. Langley & Co.; Smith,

Feb. 9 it was announced
company plans to issue an un¬
specified amount of convertible debentures, which
may
first be offered for subscription by stockholders. Pro¬
ceeds—To

it

securities.

Corp.

Detroit Edison

costs.

.

April 21 will

(jointly); White, Weld & Co. and
(jointly); Lehman Brothers; W. C. Langley & Co. and Union Securities Corp. (jointly); Morgan
Stanley & Co. Stuart Cooper, President, said it is pos¬

'

one

Long Island Lighting Co.

Shields & Co.

.

This

of

determined

Dec.

t

Boston

30

Dec.

(par $100).
Probable^ bidders for any new preferred
stock financing may include Blyth & Co., Inc. and The

into

Bdis—Tentatively

approving a proposal to increase the authorized
preferred stock from 200,000 shares to 300,000 shares

J

basis

Underwriters—To
by competitive bidding. Probable bid¬
ders: Halsey, Stuart & Co.
Inc.; The First Boston Corp.
and
Lehman Brothers
(jointly); Kidder, Peabody &
Co. and White, Weld & Co.
(jointly); Union Securities
Corp. and Merrill Lynch,
Pierce, Fenner & Beane
(jointly); Blyth & Co., Inc.; Equitable Securities
Corp.
be

bank
on

a

$10,000,000 of first mortgage bonds.

Underwriter—None.

vote

•

on

eight shares held.

March 31 of

on

Kentucky Utilities

Jan.

Boston

* Delaware Power & Light Co.
Feb. 24 it was announced stockholders

.

(par $1)

&

announced

to

•

Street, Chicago,

111.

stock

split up of each present no par
shares of $1 par value. Under¬
writers'—Lehman Brothers and
Goldman, Sachs & Co.,
both of New York.

23,640 additional shares of common stock on a share-forshare basis. Price—At par ($2 per share). Proceeds—For
investment. Office—105 West Madison

:

was

common

proval

Corp. (jointly); White, Weld & Co. and
Paine, Webber, Jackson & Curtis (jointly). Offering—
Tentatively expected in late spring.

.

was

ceeds—For

Co., Inc.

share for each

was

Culver Corp., Chicago, III.
>
Nov. 22 it was announced that
company proposes
.offer
to
stockholders of record Jan.
13
a
total

Offering—Probably in April, 1953.

announced company plans to offer and
sell to common
stockholders about 142,000 shares of addi¬

Merrill

reported company is considering debt fi¬
nancing, probably a maximum of $35,000,000 to $40,000,<000. If competitive, probable bidders
may include: Hal¬
sey, Stuart & Co. Inc.; Morgan Stanley & Co. and The
First

it

$6,000,000

Feb.

Consolidated Natural Gas Co.
it

(jointly); Equitable Securities Corp.;
Hutzler; Glore,
Co.; Harriman Riplej

Co., Inc.

common

6

Underwrit¬

bidding. Probaoit
Halsey, Stuart & Co. Inc.; White, Weld & Co

Jersey Power

11

New Orleans
Dec. 15 it was

Underwriters—To

program.

& Light Co.
reported company plans to issue and sell

was

Jewel Tea

&

Feb.

was

manufacture

New
Feb.

&

competitive

stock,

Business—Company

design, develop and

1

der,

Peabody & Co. and White, Weld & Co.
Offering—Not expected till later in
year.

The First Boston
Corp.; Salomon Bros &
Forgan & Co.; Kidder, Peabody &

bidding. Probable bid¬
Lynch,
Pierce,
Fenner
Beane, White, Weld & Co. and R. W. Pressprich
& Co. (jointly); Morgan
Stanley & Co. For debentures,
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.
ders:

it

and Shields & Co.

announced company plans to issue and sell
stock
(probably sufficient to raise between

$20,000,000 and $25,000,000) and additional debentures
early in the Spring of 1953. Proceeds—To repay bank
loans

of common

ers—To be determined
by competitive

was

common

11

bidders:

Columbia Gas System,

to

$8,500,000 of first mortgage bonds due 1983.

Underwriters—F. Eberstadt &
Co., Inc., New York; Prescott & Co., Cleveland, O.

Oct. 10 it

1947

25 shares

Jersey Central Power

plans public sale of

(following approval of

April 6).

on

in

and

X-ray machines and other equipment.
Underwriter—
Paine, Webber, Jackson & Curtis, Boston and New
York.

company

common

a

organized

Underwriter—Hay -

if Clevite Corp.
200,000 shares of

$1,000 debenture
Price—$1,000 per unit.

stock.

den,, Stone & Co., New York.
Feb.

was

49

Registration—Expected

about

new

construc¬

Feb. 26.

Under¬

writer—Allen & Co., New York.
Public
Jan.

30

it

Service
was

Co.

of

reported

Oklahoma

company

(3/!7j

may

issue

$6,000,000 of first mortgage bonds due 1983.
For

and

sell

Proceeds—^-

construction

program.
Underwriters—To be deter¬
by competitive bidding. Probable bidders: Hal¬
Stuart & Co. Inc.; Salomon Bros. &
Hutzler; White,

mined
sey,

j

:

^

Continued

on page

5&

•

50

The Commercial and Financial Chronicle

(934)

Continued jrom page

.Weld & Co. and Union Securities Corp.

49

&

&

12 it was reported company

common

held; rights to expire on

Electric Co.

P. S. Commission for

shares of its
to

one

on

Proceeds

Nov.

Lovett, President, announced company ex¬
pects to raise about $24,000,000 in the next two years
through sale of bonds, and preferred and common stock,
viz: $5,500,000 of first mortgage bonds and $5,500,000
prefererd stock in 1953 and $6,000,000 bonds, $6,000,000
preferred stock, and $1,000,000 common stock in 1954.
Proceeds—For expansion program. Underwriters — For
bonds and preferred stock may be determined by com¬
petitive bidding. Probable bidders: (1) For bonds—Hal¬
sey, Stuart & Co. Inc.; First Boston Corp. and Salomon
Bros. & Hutzler (jointly); Stone & Webster Securities
Corp.; Lehman Brothers, Bear, Stearns & Co. and A. C.
Allyn & Co., Inc. (jointly); Merrill Lynch, Pierce, Fenner & Beane; Estabrook & Co.
(2) For preferred—Stone
& Webster Securities Corp.; Lehman Brothers; W. C.
Langley & Co.; Estabrook & Co. and Kidder, Peabody &
Co. (jointly). Common stock will probably be offered
for subscription by stockholders.

facilities

sell

stock

its

Southern

California

this

30

Gas

and

company

to offer
stockholders.

Gas

would

be

stock

to

sold

to

Co.

&

it

&

Texas
Dec.

15

pay

Pacific

Lighting Corp., the
bonds, to be determined

Stuart

Co.

&

the

Inc.;

of

petitive

the

to

White,

of

Edison's

demand

which

closing

situation

the

into investor

ran

quick

brought

Prior

these

to

developments,

which

however,

banking

had

carrying through other

been

run"

the

Sentiment

in

market blows
cold

the

investment

alternately hot and

with considerable

"took

look

fire"

and

things

began to

up.

The

issues

Consolidated

Niagara

before

the three

Edison

and

issues

have

issues in which the

syndicates decided for quick
solution

have
of

measure

enjoyed

recovery

acting

up

stir

to

the

the

new

misgivings

slightly higher rating, those
seeking to

a

indication

some

of

becom¬

gauge

among

the

mar¬

ket's direction.

terest

on

simply

to

But

who
a

had

3.40% basis appeared
withdraw

the rousing

and

stand

success




Casting

in¬

of

Behavior of

Shadows?

the

Treasury

ket, particularly the
the

3 it was reported company may issue and sell in
June, 1953, $10,000,000 of first mortgage bonds and be¬
tween $14,000,000 and $18,000,000 of debentures. If com¬

Co.,

petitive, bidders

Co.

&

Western Light & Telephone Co., Inc.
was announced the additional financing will be

required during the early part of this
construction

belief

that

of with

care

ing

of

has

mar¬

of

list, is generating considerable

program.

worked

Halsey,

Stuart

In

—

Public

Wisconsin
Nov. 26 it

issuance

and

sale

of bonds

and

from

stock.

of

sizable
but

a

can

be

it has

However,

looming in Sep¬

refinancing task
With

the

for

around

yield

may

of

000

ders

bonds:

for

be

of

94%

paving

that

the

long-term 3% bond.

&

The

place

Portfolios

shift

marked

taken

in

which

the

surance

Co.

in

the last

The

the

has

investment
few years

have been doing.

same

Halsey,

period the

world's

enterprise

has

just

about halved

holdings of U. S. Government

bonds, from $3,656,000,000
earlier date to

end of 1952.

has

rate and be priced at par, was due
to
reach
market
with
a
good

reception indicated.

from

or

1945 to $3,756,000-

close

Federal Reserve Guts

of last year.

Week's

Issues

on

the

$1,845,000,000 at the

Slock

holiday at the start of the

activity in

issue market but several

new

The
Feb.

20

in

market

large secondary

a

opera¬

tion.

Maryland

Casualty

Co.-yester¬

day opened subscriptions, at least
bankers did,

additional

on

475,000 shares of

stock

is

being

shareholders

yesterday,

piring

on

Today
offer

$5

a

par

stock,

common

with

of

$1

offered
record

the

par.

first
as

"rights"

of
ex¬

March 12.
bankers

b ock

of 271,940

common

of

slated

to

shares of

Carborundum

proceeds

would

None

of

the

accrue

to

the

company.

And McKesson & Robbins Inc.'s

$15,000,000 of 20-year debentures,

Board

on

reduction

a

margin requirements

on

transactions from

stock

75% to

50%, effective when the stock
exchanges
resume
trading
on
Feb.
<

24.

This

action

requirement
and

short

vailing
Other

sales to

the

to

Board

governing

officials

say

pre¬

stock

made

action

the

Board

has

the

move

for

ex¬

been
some

They added the Board ''was

under pressure"

Board

level

remain unchanged.

Reserve

considering
time.

margin

purchases

Jan.

explanation of the

cept

not

the

both

17,
1951.
regulations of the Federal

Federal
no

restores
on

before

transactions

Co. for the account of certain sell¬

stockholders.

Reserve

announced

Reserve

were

Margins to 50%

Federal

undertakings reached fruition, in¬

ing

period from 1945 to 1952

"Met"

common

Corp.; Union

cluding

to

probably in indicative of what
major institutional investors as a
group

of

shares

early in 1954. Steele

Co.; Salomon Bros. & Hutzler.

corporate

at the

This

Revamping

of
or

Stuart & Co. Inc.; The First
Securities Corp.; Kidder, Peabody
& Co.; Shields & Co.; Merrill Lynch, Pierce, Fenner &
Beane; Harris, Hall & Co. (Inc.); Carl M. Loeb, Rhoades
Boston

This

2.85%

feeling

growing

a

a

long '2%s

quoted

now

market

way

the

indicated
is

there

much larger

2,

1953

if negotiated, may be handled by The First
Corp. and Robert W. Baird & Co. Probable bid¬

Boston

$385,000,000 in

se¬

curities.

an

number

taken

short-term

and

may include the
$7,090,000 and $8,000,0()0

between

$2,000,000 to $3,000,000 of preferred

indeterminate

An

week tended to curtail

1972-67

Service Corp.

announced that company plans permanent

was

financing prior to June 1, 1953, which

&

the

combination offer¬

a

to carry out

year

of

out.

financing,

mid-June

at

this

long-

tember.

Type

financing has not yfet
Underwriters
Harris, Hall & Co.
(Inc.), Chicago, 111., and The First Trust Co. of Lin¬
coln, Neb.
been

sell about $11,Proceeds—For new

at the moment in the

ahead

(jointly);

Feb. 2 it

may

bidders:

Treasury
is

include: Halsey, Stuart & Co. Inc.;

(jointly); W. C. Langley & Co. and The First
Corp. (jointly).
•

Boston

obligations about ten-fold

its

long-end

may

Securities Corp. and Lehman Brothers

increased its holdings of corporate

the

indicated

Washington Water Power Co.
Dec.

high-grade corporate market.

In the

"slow mover."

a

People

Corp., Harriman Ripley & Co., Inc. and
Goldman, Sachs & Co. (jointly).

shadow further adjustment in the

dis¬

Treasury list is
again and in a manner

now

The First Boston

largest

some

from

by

belief that action here may fore¬

The

com¬

stock, none. For debentures, to be
competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co., White,
Weld & Co. and Equitable Securities Corp.
(jointly);

Underwriters—To be determined by com¬

nervousness

stock to

a

Blyth & Co., Inc., Smith, Barney & Co. and White, Weld

portfolio of Metropolitan Life In¬

Edison Co.'s offering,
brought out
a
3.38% yield basis, though

on

aside.

sub¬

since commanded slight premiums
and

But

ing

off

slid

on

stock may be offered late in

Probable

issue and sell in

l-for-15 basis and $30,000,000 of
Proceeds—For 1953 construction program.

determined

Inc.; The First Boston

Light Co.
reported company
first mortgage bonds.

lows.

day

carrying

Mohawk

& Co.

may

common

Underwriters—For

(4/13)

was

for

The

Consolidated

gave

involved

stantially from the original offer¬
ing prices.

frequency

these days. Only a week ago, after
things seemingly had been stalled
for a fortnight,
Niagara Mohawk
Power Corp.'s new issue, offered
on
a
3.406 yield basis,
suddenly

groups

offerings decided to "cut and
with 'the consequence that

new

Service Co.

maturity

of the books.

stockholders

Union

bidding.

change

completely

complexion

and the

Republic

Corp.

was

debentures.

Inc.; Kuhn, Loeb & Co., Blyth & Co., Inc., Kidder,
Peabody & Co. and Merrill Lynch, Pierce, Fenner &

Niagara Mohawk undertaking

appeared

Central

—

Gas

it

11

mon

Co.

Probable bidders for Southern

Halsey,

during

Power &

it

construction.

bonds:

to

scheduled for March 5.

000,000

California

expects

(jointly); Hemphill, Noyes & Co. and Drexel &
Co.
(jointly). Bids — Expected to be received up to
11:30 a.m. (EST) on April 13. Registration—Tentatively

of

Underwriters—For

company

Beane

Co.

'

and

issue of convertible

reported company
May or June about $20,000,000 of

Kuhn, Loeb & Co., Lehman Brothers and
Inc. (jointly); Salomon Bros. & Hutzler;
The First Boston Corp.; Kidder,
Co. and Merrill Lynch, Pierce, Fenner &

Inc.;

sale

by competitive bidding.

United
Feb.

Union Securities Corp.;

cost,

parent.

the

Underwriter

an

&

to construct pipeline
$32,518,500.
On Sept. 15

that

Fall of

preferred stock.
Underwriters—Probably White, Weld & Co. and Stone
Webster Securities Corp., New York.

stock of¬

was

one-half of the
and the remainder of the proceeds to come from
common

common

sale this

& Co.,

Blyth

applied to California P. U. Commission for authority to

Bonds

Transcontinental Gas Pipe, Lino Corp.
14 it was reported company plans issuance

March

—

Co.

cost

Harriman Ripley

Corp.;

construct a 73-mile pipe line and other facilities at an
estimated cost of $7,482,194. Of the total, Southern Cali¬
fornia would spend $5,600,000, and Southern Counties the

balance.

to

bonds

Underwriter

program;

company

announced

$25).

(par

Peabody
Counties

May be Eastman, Dillon & Co„, New York.

Corp.; Glore, Forgan & Co. (2) For bonds, Halsey, Stuart

Co.

Southern

the basis

on

petitive. bidding. Probable bidders: (1) For stock, Kid¬
der, Peabody & Co. and Merrill Lynch, Pierce, Fenner
& Beane (jointly); Kuhn, Loeb & Co.; Union Securities

Stockholders will vote April 15 on plan. Underwriters—
May be Morgan Stanley & Co. and Dominick & Dominick, both of New ( York.

Jan.

Trans-Northwest Gas, Inc., Spokane, Wash.
Feb. 4 sought FPC authority to construct and
operate*, a
pipeline system to serve eastern Washington and north¬
ern Idaho to cost an estimated
$19,765,480. Underwriter

reported company plans to issue and sell
first mortgage bonds due 1983 and 80,000
shares of preferred stock (par $100). Proceeds—For new
construction.
Underwriters^1To be determined by com¬

proposes

common

(3/25)

$9,000,000

'.

company

to

been

Dec. 15

issue of non-convertible preferred stock (no
—
For? working capital and expansion.

announced

estimated

Texas Electric

Co., Los Angeles, Calif.
Appleby, President, announced plans for

was

Gas

authorized

additional

stock

Finance

commQn

Glore,

Smith,

Barney & Co.; White, Weld & Co. and Merrill Lynch,
Pierce, Fenner & Beane (jointly); Lehman Brothers.
Offering—Probably early in 1953.

Inc., Chicago, 111.

(Alexander), Inc.

it

Peabody & Co.; The First Boston Corp. and
Forgan & Co. (jointly); Union Securities Corp.;

ir Southwestern States Telephone Co.
Feb. 18 it was reported early registration is expected of
an issue of about 60,000 shares of convertible preferred

/

16

Union

—

petitiv.e bidding. Probable bidders: Halsey, Stuart & CJoInc.; Equitable Securities Corp. and Salomon Bros.; &
Hutzler (jointly); Carl M. Loeb, Rhoades & Co.;
Kidder,

the first six months of
1953 in the amount then permissible under its mortgage
indenture, and to provide for other permanent financing
by the sale of additional first mortgage bonds or other
securities in such amounts as may be appropriate at the
time. Probable bidders for bonds: Halsey, Stuart & Co.
Inc.; Kuhn, Loeb & Co.; The First Boston Corp., Blyth
& Co. Inc. and Kidder, Peabody & Co. (jointly). Any
stock financing may be via stockholders.

Proceeds

Jan.

had

it

Natural

FPC

3

construction

For

—

Southern

Rockland Light & Power Co.
Nov. 12, F. L.

additional

Underwriters

was reported
company plans issue and sale of
$7,500,000 first mortgage bonds. Proceeds—For construc¬
tion program. Underwriters—To be determined
by com-

Price—To be supplied by amendment.

April 10.

Smith, Barney & Co. handled the last
fering in January, 1949.

Smith

stockholders.

Toledo Edison Co.

share for each six shares held; rights to ex¬

new

Fiduciary Management, Inc., owner of 8,956,240 shares,
will buy all unsubscribed shares.

an

to

Oct. 3 it

authority to issue 114,167 additional
stock (no par), to be offered first

stockholders of record March 25

common

of

held; rights to

common

expire about March 16. Price—20 cents per share. Pro¬
ceeds—For working capital, etc. Underwriter—None, but

offering

stock

Securities Corp., New York.

announced company has applied to Indiana

was

pire

par).

Co.

reported

was

>

Inc.

Underwriter—The First Boston Corp.

basis of one

Probable bidders:

Southern Indiana Gas &

stockholders of record Feb. 20,
1,449,374 additional shares of capital stock (par 10 cents)

Seaboard

a

Southern Counties Gas Co. of California

scription by minority

Feb. 9, Paul A.

on

Price—Expected to be named by company on
Proceeds—To increase investments in subsid¬
be determined by competitive

Jan. 30 it

at rate of one new share for each share

15

See Southern California Gas Co. above.

announced company plans to offer for sub¬

was

shares

17

—Planned for March 13.

shares

was

Resort Airlines,

for each

Blyth & Co., Inc.; Equitable
Securities Corp. and Union Securities Corp. (jointly);
First Boston Corp.; Lehman Brothers; Morgan Stanley
& Co., Kidder, Peabody & Co. and Merrill Lynch, Pierce,
Fenner & Beane (jointly).
Bids—Tentatively expected
to be received at 11 a.m. (EST) on April 15. Registration

handled by Morgan Stanley & Co.,
Drexel & Co. and Glore, Forgan & Co. (jointly). Bids
—Tentatively expected to be received on March 18.
Feb. 6 it

Utilities

it

that following completion of
proposed financing by Dallas Power.& Light Co., Texas
Electric Service Co. and Texas Power & Light Co., sub¬

(4/15)

Underwriters—To

bidding.

public stock fi¬

Underwriters—Last

stock.

13.

iaries.

(3/18)

it contemplates selling 750,000

7.

April

H. Blake, President, announced that as a
first step in raising funds to carry forward the company's
construction program
(to involve approximately $90,-

nancing in 1952

Co.

15

common

May

Halsey, Stuart & Co. Inc.;

Public Service Electric & Gas Co.

of

Texas
Dec.

Offer¬

sidiaries (which see) the parent plans to offer additional

share

new

Jan. 20, George

1953)

(jointly); White, Weld & Co.; Lehman Brothers.
ing—Tentatively expected in May.

Co., Inc. (jointly);

Beane and Harris, Hall &

stockholders of record about April

first refunding mortgage bonds.

Kuhn, Loeb & Co. and Lehman Brothers (jointly); Mor¬
gan Stanley & Co. and Drexel & Co. (jointly); The First
Boston Corp.

000,000 in

(jointly); The First Boston Corp.; Union Secu¬
rities Corp.; Hemphill, Noyes & Co. and Drexel & Go.

was reported company plans offering of about
1,000,000 additional shares of common stock (par $5) to

repay

Probable bidders:

bidding.

Beane

Jan. 28 it

plans issuance and sale

bank loans and for new construc¬
Underwriters—To be determined by competitive

Proceeds—To
tion.

&

Southern

Public Service Electric & Gas Co.
Jan.

(jointly); Blyth
Counties

Southern

Company.

17.

: in May of $50,000,000 of

for

bidders

Blyth & Co., Inc.; The First Boston Corp.; White, Weld

Bids—Tentatively expected to be received on

(jointly).

Probable

Halsey, Stuart & Co. Inc.; Merrill Lynch, Pierce,

Fenner

Co.; Harriman Ripley & Co., Inc.; The First Boston
Corp.; Kuhn, Loeb & Co. and Union Securities .Corp.
&

March

Inc.

bonds:

(jointly); Glore, Forgan

Weld & Co. and Shields & Co.

Co.,

Thursday, February 26, 1953

...

simply

and

waited

"right time" to act.

that the

for

the

«k.

Volume 177

Number 5198

The Commercial and Financial Chronicle

...

(935)
that

Bankers Underwrite
Ua.hI^mJI

Aha

Maryland Casualty Co. is one
Of the oldest and largest multiple-

AUaa

maryiana uclsi ullbl

line stock casualty insurance

MThe Maryland Casualty Co. is
offering to holders of its common

surety

stock at $23 per share

basis

of

share

of

IVz shares

of

stock

common

Feb. 21, 1953.

on

offer

will

(EST)
fering
a

one

held

record

of

The subscription
at
3:30
p.m.

proceeds

stock

from

will

be

the

DIVIDEND

net

NOTICES

On

43% cents

its expanding

40

cents

COMPANY

,

on

The

COMPANY

New

Board

of

Directors

of

Crane

Co.

The

a
regular quarterly divi¬
$.50 per share on the outstand¬
Common Shares of
the Company,

No.

of

Board

887

York,

the

of business

close

on

on

pany,

1953

P.

GERARD

J. EGER, Secretary

K.

L.

MINING

will

be

Products

mailed

February

W.

Irving Trust

A

Com¬

dividend

Chicago,

P.

stock

the

payment

transfer

bcoks

this

„

j,vMur

regular

a'

cents
»

per

quarterly dividend of
share on the common

record

dividend.

*

Company
*1

*

19,

of

Exec. Vice Pres. &

Sec'y.

87

the

the

Irving Trust

y

111 Fifth Avenue

NewYork 3,N. Y.

-

at

Street, New York

"1*94th' Preferred Dividend

A

quarterly dividend
share)

a

has

Preferred
:

Dividend Notice

Stock

Tobacco

•April

of

of

The

the

upon

in cash

Harry L.

ARUNDEL)

'February 24,

^fCORPORATmilO^

cents

stock

$10,

per

of

share

this

payable"April

1,

stockholders of record

payable

February 24,1953

par

1953,

at

to*

the close

A

KOBERTSIIAW - FULTON

CONTROLS COMPANY

-

of

Directors
has

of

the

10,

STEPHEN G. KENT, Secretary

>r

COMMON STOCK

day
declared thirty
quarterly .divi¬
value stock of

[cents per share as a
dend, on the no par
the corporation, issued and outstand¬
ing, payable on and' after April 1, 1953,
, to
the stockholders of record on the
*

Hilyard, Treasurer

'

corporation's
business

books

March

the

at

close

The
Du

pas

NORRIS,

declared
its

on

Cumulative

Secretary.

payable

a

At
of

Pittsburgh,
meeting

a

the

of

Penna.

the

held

today,

1953.

a

(50c)

February

the

the

business
The

March

on

Board

-dollar

one

($1.09375)
lative

per

1,

of

March

on

of

March

15,

2,
S.

per

the

at

March

31,

close

dividend

a

the

at

payable

Stock

record

at

the close

March

3,

$4,375

the

close

to

The iBankM,

Cumu¬

RAIBOURNr

of

business

The

busi¬

McCASKEY, JR.

on

Secretary

National

Bank,

Metuchen, in the State
closing its affairs.
All
Association

are

therefore

to present claims to the

Rector

of

at;

located

New

Jersey,

creditors

hereby

of

the close of business

is

March

be

of

held

H,

notified

Ruegger

Thomas D. Ainslie
Louis H. Meade

Liquidating Committee
Dated:

10,1953.

mon

tion

cents

not

transfer

books

February 20, 1953.
will

be closed.

ss

Secretary Si" Treasurer
on

February 17,1953.-,

on

Edison

January 20, 1953.




irig

California

on

the Com-

Stock of this

Corpora¬

per

was

share

declared

payable

March 17, 1953, to share¬

holders of record March 2,

on

ORIGINAL PREFERRED STOCK

record

at

CORPORATION OF AMERICA

P

180 Madiiott

n

THF. Boardthe Directors has this day
of following dividends:
declared

any

subsequent transfers of stock.

S

4

i

be closed.
The Borden Company
douglas T. ORTON, Secretiry

%% preferred stock, series a

The

inal Preferred

current

ness

i

the

current

quarter of $1.75 per share,

payable April
of record

i

at

1,

1953,

the

close

to

of

holders
business

March 6, 1953,

50 cents
per
-

24, 1953, to holders of record at the
close of business March 6, 1953.
R. O. GILBERT

Secretary

February 24, 1953.

cents

share
Stock;

per

on

Orig¬

per share on Cumu¬
lative Preferred Stock, 4.32%
Series.
cents

The above dividends

are

pay¬

able March 31, 1953, to stock¬
holders of record March 5,
1953. Checks will

stock

share, payable March

|

0

50

27

regular quarterly dividend for

common

Amer/cals N-te^ar

the close of busi¬

at

March 6, 1953.

7% second preferred stock
The

M

P

authorized the payment of the

following quarterly dividends:

holders of record

i

PHILLIES

DIVIDEND NO. 24

regular quarterly dividend for
quarter of $1.12)4 per
share, payable April 1, 1953, to
the

I
i

not

CUMULATIVE PREFERRED STOCK

The Board of Directors has

Thursday,

The stock transfer books will

Avanue, Naw York 16, N. Y.

DIVIDEND NO. 175

4.32% SERIES

1953. Checks will be mailed.

Philadelphia, Pa.
February 20,1953

Company

DIVIDENDS

i

TREASURER

at

vote

HUME

Secretary

Southern

a.m.

5, 1953, will be entitled to
said meeting, notwithstand'

the

JOHN

record

P

Wednesday, April

County, New Jersey.
Only stockholders of

undersigned, at 85
Street, Metuchen, N. J.
Phil T.

of

WALTER H. STEFFLER

I

meeting,
will

1953, at 11:00 o'clock

NOTICE

March 3, 1953.

of business

J

Contjiawif

annual

of

SULLIVAN, Secretary

(Eastern Standard Time) at 43 Park
Avenue, Flemington, Hunterdon

Metuchen

close

..

Annual Meeting

stockholders

i-

stockholders

to

20, 1953 to

1
%.

Preferred
of

1953

record at the dose of business

of

(150)

of

the Common Stock

.

of

Corporation,

the close

LIQUIDATION

pay¬

1,

on

Company, payable April

1953.

A dividend of fifteen

cents

share

1953, to stockholders of

of

the

today

share has

In All Phases of Television

Common

three-eighths
cf

a

today by Kennecott

Corporation,
31,

ROBERT C.

1953.

PAUL

Copper

Preferred

to

Directors

t

dividend of 47 cents

Treasurer

1953.
A.

16,

declared

5%

to

1953,

record

1953

record

been

1953.

on

Stock

March

stockholders

2.

8.25

March

A cash distribution of One Dollar and

Twenty-five Cents ($1.25)

day

the

The

was

1953,

declared
and

share

Preferred

payable

ness

also

nine

of

a

NOTICE

February 20, 1953

oil Mont

19,
fifty,

stockholders

at

this

B.

York, N. Y.

Corporation,

March

Common
record

of

share

per

cn

of

dividend*

per

di¬

Stock

declared,

March

stockholders
at

161 East 42d Street, New

Common

been

able

CORPORATION

Directors

Corporation

dividend

declared

payable

of

Steel

cents

Stock

has

quarterly

of37^y< per share

the

*

Board

Allegheny Ludlum

Inc.

1953

Allegheny Ludlum Steel Corporation

Allen

Convertible Preferred

February 19,

*.

of

-outstanding shares of

April

Stockholders
business

Directors

of

Laboratories,

of

1-6} *1953.

MARSHALL G.

Board

Mont

share

•

regular

vidend

1953

LABORATORIES, INC.
.

of

Board

of the
A

ALLEN B. DU MONT

this

The

declared

KENNECOTT COPPER

Corporation
(February 25, 1-953)

DIVIDEND

Green sburg, Pa.

m

Board

UTILITIES

COMPANY

NMVUW*

The

1,

Treasurer

on

Arundel

April

on

the close of business March

■MTIMtM

1

Secretary.

%

second

3, 1953.

rec-

business March

convertible

the capi¬

on

Company,

on

1953. Checks will be
mailed.

J. E. 1VINS,

on

quarterly dividend

a

of business March

1, 1953, to■ stockholders of

-ord at the close of

tal

American

Company, payable

on

John H. Gage,

of 25-

1%% ($1.50

beelr declared

$4.00

share

a

on -

March 6,1953.

12, 1953.

The, Board of Director^haaTthis

day declared

"

r—-

stockholders of record

1953 to stockholders of record

p

President

share

a

$1.00

and

clared,

February 19, 1953

'

3/20

on

stock,

preferred stock have been de¬

1

Wall

share

a

common

$3.50 cumulative preferred

stock,

One

200

the

ItXdJjhjJLX

1953.

iNCO.po.Are9

.

1

a
quarterly dividend of
share on the Common Stock,
payable April 1, 1953 to

be closed.

not

three

1

..

DIVIDEND NO. 22

The Board of Directors has de¬

Company

->

•J

close

•

-

Secretary

Transmission

the

2,
1953.
closed for

be

WlNHAM

Tennessee Gas

16, 1953.

March

at

March
not

ct/w tfrrnsAAjQa/ri

corporation, payable March 10,
-1953, to stockholders of record at the
close of business on March
2, 1953.

..

on

the

at

March

H.

1953

March

CENTS

Hervey J. Osborn

.

12%
stock

of the

ROY W. WILSON

on

25,

per

The Board of Directors has declared
,

record

1953.

10,
B.

February

141

Monday,

will

N.rqP^February

1

March

on

ness

clared

A., SIMPSON, Treasurer.

:: '
York.

'
New
„

of

of FIFTY

Corpora¬

1953; to stock¬

Treasurer

155

Broadway,

6,
N. r .Y.,
cn
to stockholders of
M.,
on. Monday,

1953,

The

i

Illinois

NO.

York

o'clock

of

business

per

;

CORP.

COMPANY
:

23,

ADVANCE ALUMINUM CASTINGS

a

The stock transfer books of the

DIVIDEND
of
Seventy-five
chare cn the Common Stock
of, this
Company, has
been
declared
payable
at the Treasurer's Office, No. 165
New

on

share

holders of record at the close of busi¬

Company will

PACIFIC

DIVIDEND

t

NO.

capital stock of this Company,
payable April 1, 1953, to stock¬

Secretary.

QUARTERLY

($.75)

close of business

Pec

13, 1953.

share has been declared

a

Agent.

holders

Cents

Liberty

,

thirty-one and"

(31J4D

cents

the Common Stock of the

William G. Holman

DIVIDEND

of

A

at the

company

"

SOUTHERN

on

declared dividend

HAMILTON,

1953.

6,

by

Directors has this date

of

tion, payable April1 1,

Corporation declared

887

has

Disbursing

JOHN

KARR, Secretary.

GAS

LOUISIANA

declared a-dividend of

quarterly
dividend of
Twenty Cents (200) per share on
its common stock, payable March
27, 1953 to stockholders of record

COMPANY

NO.

Directors

Dividend

Ex¬

Dividend Notice
The Board

regular

McCAULEY, Secretary

of

Checks

Stock

NOTICES

SHREVEPDRT,

February 24, 1953
The Board of Directors of

Y.

forty cents ($.40) per share of $12.50
Capital Stock,
payable March
12,
to stockholders of
record March 2,
1953,

ing
payable

on
March
23, 1953, to Share¬
holders of record at the close of business
March
6, 1953,

of

DIVIDEND

one-quarter

March 13, 1953.

N.

value

par

Francisco

NOTICES

Farmingdale, New York

April 15, 1953, to stockholders

quarterly dividends of
the Preferred Stock and
Common Stock were

DIVIDEND

declared

dend

FRANCISCO, Calif.—C. D.

CORPORATION

International Salt
has

San

PRODUCTS

the

on

HOMESTAKE

the

change.

LIBERTY

NOTICES

crane co.

to

Shaughnessy

CORPORATION

April

J.

added

been

UNITED

1, 1953, to stockholders
record at the close of business
March G, 1953.

of

has

Co., Ill Sutter Street, members

HARVESTER

able

NOTICES

1953,

share

payable

&

Shaughnessy Adds

DIVIDEND

INTERNATIONAL

er

HELME

share

pen

per

declared,

Chamberlain

the staff of Frank C.

The Directors of International Harvest¬

Flaza,

February 25,

share.

(Special to The Financial Chronicle)

SAN

of record at
\V.

Rockefeller

$70,845,932
$3,137,805,

was

common

of

income
of " the
Company have declared quarterly
1952 aggregated $74,- dividend No; 152 of fifty cents (500)
per share on the common stock pay¬

GEORGE
9

a

underwrit-

busi¬

Underwriting

the

totalled

'

income

equal to $2.71

United

Canada, except Prince

company in

It is presently intended

DIVIDEND

do

the

1951,

income

and

Frank

United

of

sale
to

to

of

In

com¬

ing

and

Island.

DIVIDEND

added

be used to
carry on

states

share.

mon

pre¬

1

company's general funds and will
business.

of

Edward

Pierce, Fenner & Beane.
J Net

licensed

all

minion

expire

The of¬
is being' underwritten by
group headed by Merrill Lynch,

the

the

$3,843,466, equal after
ferred dividends, to $2.96 a

;and all provinces of the Do¬

ama,

March 12, 1953.

on

is

in

240,133 and net income amounted
to

States, the District of Columbia,
Alaska, Hawaii, Puerto Rico, the
Canal Zone,
the Virgin Islands,
the Republics of Cuba and Pan¬

additional

common stock for each

It

in

ness

the

on

companies

States.

stock
the
right to subscribe to
442,098 additional shares of com¬
mon

the
company
will
invest
proceeds in securities.

such

51

be mailed

from the Company?s office in
Los Angeles, March 31, 1953.
P.C. HALE,

February 20,1953

Treasurer

52

The Commercial and Financial Chronicle,.. Thursday, February 26, 195$

(936)

claimed and published in col¬

BUSINESS BUZZ

eral

on..
A -mnmg]

y

/if CM'

Capital

annum,

dandelion

m

JL "U/

C. —
Standing by itself, the dismissal
of

alleged necessities of the sup¬
porting units.
*

the

Sarnoff

raises doubts

the future

to

to

drive

the

of

Commission

as

curtail

excess

in the military

^manpower

man¬

this

ices

and commissions set up

the

least

effectiveness

there

to the

man

sion groups)—in a

phlets:

National

nations in the ratio between the
number of

men

firepower

to

bringing actual
bear and those

mij^porting them,

On the Hill, Charles E.

clusion

is

man

liave such

if

the

are so

organized

that

of Vthe,
system, could make possible a
reform

a

large curtailment in uniformed
personnel without a reduction
lit firepower,

More particularly, Committee
sources had noted, the cost of

jSC- a military establishment

bears

si pretty, close, relationship to
the size of its personnel. Any
excess
personnel
costs
not
merely their pay, allowances,,
wad personal equipment, but
plso. the
vast
overhead
for

cantonments, housing of depend¬
training, recreation, post
exchanges, chapels, and so on
m&ihfinitum.
<
■.
»
^
ents,

.

.Whenever the Senate group
attempted to get any where
with the military, however, it
into

run

stone

a

wall.

In

the

military

services " even
more!
than under the civil
service, the

distribution of rank, pay,, and
copunand becomes more bountiM the larger the establishment."

The

Subcommittee

ran

.

into'

such

difficulty that it even be¬
lieved it necessary to coerce the

Pentagon

into

setting

up

a

commission to study,, manpower,
by means of an amendment to
an

appropriation' bill.

iiiis

amendment

which

It

was

led

to

kept alive at all costs, so that
If

Eisenhower
backs him solidly against 3.5
million military persons who
will oppose him solidly.

omy

sonnel

of

It is doubted

Wilson's

For Nothing

an

keep the economy going at
ever-rising wages.
ideas

some

plus

special agency,

a

the

recommended

program

some

the

ment subsidies,

to private en¬
-

(And he also issues semi-annual
reports.)

those

unable

for

housing
economic

pay

Actually,

he

could

tion

of

ondary
a

a

"backstop"

or

sec-,

market rather than being

primary

source

of mortgage

vestment and Commercial

W. Glenn Campbell, and Thomas
Johnson — Chamber of Com¬

F.

of
the
United
States*
Washington 6, D. C.—One pam¬
phlet 50c, set of 17 pamphlets, $(&
(quantity prices on request).
merce

one

or

two

Federal

System

Reserve

sup¬

days of free and easy mortgage
lending are over, probably re¬
gardless of the level of interest
rates.

to

detail

man

Press, 2960 Broadway, New
27, N. Y.—Paper—$1.

tober, of the Sarnoff Commis¬

Regulations Issued by Switzer¬

down

Dismissal Seemed Curt
Another
commission

for having a
that a study of

reason
was

•teat vast magnitude was
beyond
Hie scope of the subcommittee.
It

was

beautiful

collections

ment

—

work

in

wing which wants the Council




volumes

including

longer in force, Sw*
t

1

'

Wanted:

Rep. Paul Shafer
has

found

some

(R. Mich.)
"daffy dills"

Men—A

developing

1

•

program

Business

for

Leadership*

through Economics Discussion)

in the Production and Market¬

Groups—Economic Research De¬

partment, Chamber of Commerce*

P&MA is now

going to
tect the poor, unsuspecting
chasers

both

of

dandelion

greens

daffodils

pro¬

of the United States,

'Washington

6, D. C.—On request.

•

pur¬

and

with Federal

TRADING MARKETS

Company

George E. Keith Pfds.
Polaroid Co. Pfds.

Cheney Bigelow Wire

Trading Markets

William Wise Pfd.

fARL MARKS & P.O. INC.

<

%

Wiley Bickford Sweet
Rogers Corp.

Foreign Securities Specialists
50 Broad Street..

keeping alive, and at consider¬
nomic Advisers." It is the left-

no

A. & G. J. Caldwell

without

about: * year to ascertain
jus$
*

Firm

of

contemplated that the
Sarnoff Commission would take

two

regulations
i

Agriculture

»

done

Supple¬

International

Gorton Pew Fisheries

I

be

5th

—

for

Settlements. Basle, SwitzerlandPaper Sw. fcs. 9; complete com¬
pilation of regulations plus five
supplements,. Sw. fcs. 50;. complete

""

FOREIGN SECURITIES

whole report.
could

Bank

Riverside Cement

statistics for him. One of these
individuals could coordinate the

This

Countries

Various

forecast national trends and set

'

Yorfc

land Regarding Its Payments With

National

each

sion.

belatedly last Oc¬

Publication*

United Cape Cod Cranberry

everytime an "Economic Re¬
port" was due, and sit down and

the naming,

Nations

—United

1952. II.A.2—Columbia University:

other depart¬
one

Con¬

fcs. -70.

"Daffy Dills" in

the

ments, and the Federal Reserve
Board

Policies

Governmental

cerning Unemployment, Inflations
and Balance of Payments, 1951-52:

Commerce, Labor, Agriculture,
and

Policy*

The Ethics of Capitalism — Emer¬
son P. Schmidt, R. Buford Brandis*?

marketing standards, daily pro-

money.

"Economic
order

the

revealed.
Association to its joriginalJunc¬

omists of all other government
departments for its primary in¬
formation, plus statistics issued
by private industry.

Economy; Individual and Grouifc.
Security; International Trade, In¬

ing Administration of the De¬
partment, of. Agriculture,
he

to

rent.

the CEA has to
statistics issued, col¬
lected, and interpreted by econ-!.

with

•

draw upon

Report"

.

Finds

arrangement

(b)

joined in the objective of

Thus,' NAHB recommends a
complete review of public hous¬
ing and a new and less expen¬

ideas

Distri-,

Its

ing the Economic System and Tts
Functions; Spending and Taxings
Taxing, Spending, and Debt Man¬
agement; Labor and the American.

if it meant

even

and

pressing monetary inflation, the

terprise and away from govern-1

,<

specific ob¬

a

Eisenhower Administration AND

hand, the indus¬

return

housing built

inflation,

try appears to strive with ardor
for

postwar years

seven

and

Income

button; Progress and Prosperity;
Sustaining Prosperity; Demand*
Supply and Prices; Prices, Profits
and Wagers; Why the Business¬
man?; How Competitive is the
American Economy?; Understand¬

jective of Federal policy* to get

offering to
the Administration, as outlined
by
NAHB
President
E.
M.
Spiegel,
in
the
association's
"Washington Letter."
one

that

easy

(a) this was made

of Home Builders is

On the

opinion

many

mortgage money on
long-terms with low down pay¬
ments
was
possible because

which the National Association

sive

an

with less
simply will not

money

less down

nize

contradictory trends in
the
thinking of the private
housing industry are evident in

^message to Congress annually.

wanted

Thirty-year

observers outside the
building industry. It is said that
one of the problems of the in¬
dustry is that it cannot recog¬

Two

he may get elsewhere, and sends
on his own "Economic Report"

If Ike

able otherwise.

of

of the

any

source

of

economic

full tilt with

Council's

where it is not obtain¬

ment puts it up, in the

Dilemma

report recommending how best

The President cribs

of mortgage

as a

be available unless the govern¬

Housing Industry Confronts

Congress, which had got
pretty well fed up with this
agency, gave it funds to run
through only March 31.
Under the Employment Act of
1946, setting up the Council;
this three-man body, with a
clique of so-called economists,
is supposed annually to provide
President

use

money

and

payer.

was re¬

The

for the

pay¬

still

would

and

F.NMA

-

-

"Council of Eco¬

the

NAHB
mortgage

down

coming from

nomic Advisers" until June 30.

>

Report" of the
experts. The result¬

Capitol asking for funds to

continue

to

"Economic

hand,

30-year

smaller

and be just as profound as those

ported to have sent letters to
the

more

at

ments,

own eco¬

but without the cost to the tax¬

President Eisenhower

govern¬

ing pieces of paper could sound

job.
CEA

Could Have

Ike

wants
loans

so-called

experience

other

the

On

as happened with
Truman, could tell him what to
take and what to discard of!

the

on

must rise.

recommendations 1
Council—their original

the

interest rates

ment-sponsored mortgage loans

„

nomic staff,

uniformed, per¬
cannot be dispensed

Mr.

that

Third, the industry recognizes
that

per¬

by law tie up
of forced spend¬

Then the President's

of.

aforementioned.

power

aim,.

with, without loss of firepower,
as

can

to

ing with the

is to see if hundreds of

thousands

they

vast programs

The other main route to econ¬

.

return

they

haps

President

if

omy,

inefficient¬
they must

a

then

the

as

for following this road to econ¬

United

high ratio of sup¬
forces to theiy fire-:

porting
power,

rated

fits him for the latter

that

States forces
ly

...

Wil¬

best

is

The significance of this con¬

j

Money,

pretty variety of weapons, and
get volume output going.

son

series of pam¬
Mystery of Moneys
of the Money Supply*
Income and Jobs, The

The

Control

all the other

contracts for

cel

United States

appears to have
"behind the line",
military establishment, way out
of proportion to forces of other

human wellprimer for

a

economic education discus-,

adult

variety

by

mission. Cut out the frills, can¬

the

anqnormous

as

of
weapons
the military. Re¬
quire concentration on one or
two weapons for each definable

"Tru-

that

(planned

ordered

Johnson of
fTDexas, the present Democratic
floor leader, was Chairman of
the Subcommittee during the
time the Subcommittee and its
was
wrestling with this
manpower problem, The conwas

Enter-,

being

infinite

and/or notoriety.
Senator Lyndon

reached

Competitive

homie principles and

One of these Is to reduce the

Committee" of War II fame

sensus

American

prise Economy, The: Study in eco^

sacrifice of military potential.

of excess man¬
power
in the Services. This
Preparedness
Subcommittee
successor

are

by which genuine economy may
be achieved without material

problem

the

in Congress feel that
only two main ways

Many

of

was

jobs for

Korean front.

committee had been studying
the

to stall

far from the

persons

many

the Senate Armed Services Sub"

just another of those
of Pentagon boards

providing safe

whilst

For more than a year the
Preparedness Subcommittee of

0^

per

their many varied problems,

on

the

of

was

thousands

Committee, represents a
veiy practical if extremely dif¬
ficult route by which it may
he possible to
achieve most
Substantial savings in military
spending without curtailing in
the

$12,000

Sarnoff

the

power, in the opinion of some
members of the Armed Serv¬

ihq military potential
United States.

from

comes

paid

Commission was dismissed, the
impression was gained that the
new
Administration
thought

tablishment.

Curtailment of surplus

last week

When

es¬

greens

(This column is intended to re~
fleet the "behind the scene" inter~
pretation from the nation's Capital
and may or may not coincide with
the "Chronicle's" own views.)

how necessary to fighting power
are some
of the luxuries and

D.

$13,000

Shafer noted.

year,

WASHINGTON,

earning

while the order oil

official

an

daffodil order

of the

official

an

per

from the Nation's

column of the Fed¬

Register.

Signer
is

Bdund-the-Seen* Interpretstions

after

umn.

.

LERNER & CO.

New York 4, N. Y.

Tntmtnmnt

Tel: HAnover 2-0050

able cost, the "Council of Eco¬

10 Post

Teletype NY 1*971

Telephone

,

HUbbard
•I.M ia .tm.m. m

m

m m

mm mm m ,mmm

■

■

m

mm m m

m

mm

.3.

^,

Securities

Off{ce Square* Boston 9, Mass.
2-1990

Teletype
BS 69.