Full text of Commercial and Financial Chronicle : February 3, 1955, Vol. 181, No. 5400

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UNlVfeKij

ESTABLISHED 1839

1

I 1

Y
y

iGAn
OF MICHIGAN

-

_

Commercial <jb£l
Financial

Beg. U. S. Pat. Office

Volume 181

New York 7,

Number 5400

EDITORIAL

t

The

We See It

President

his

in

Affecting
Housing Demand

,

Economic

recent

most

to

rest.

They deserve careful study and
Specific proposals as they come along
] from time to time are to be studied in light of
his basic principles,
and, in turn, his "basic propositions" are to be
interpreted in light of what he does from day to

These

i

"basic

words,

population growth and family formation.

"unsold

market"

for

life

rates*

We

cient instruments for

consumption.
«
"Second, a free

all

•

organizing production and

know

consumers.

"Third,

creates

As

the

Federal

confidence when

Government

it restrains

companies operating power reactors, f Favors {
repeal of the compulsory licensing features of Atomic
:
v
Energy Act.
*
A

an

factors.

that

eration

skill,

the

But

it is

telephone:

Here

high, and deaths

exceeded the previous

corn exchange

22

gage

Bankers

on

department

The Bank

mission's

STATE

MUNICIPAL

AND

of

to

Reactor

the

W.

Development

Chase

National

S.

Cole

on

page

21

and

is

atomic

now

Bank.

York

New

New

Municipal

Stock

York

Exchange

Cotton

Exchange

Exchange,

Board

Orleans

Bonds

Exchange

ol

Cotton

Inc.
Trade

Exchange

Bond Department

and other exchanges

THE NATIONAL CITY BANK

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

OF NEW YORK

£3,104,687

ol

also undertaken

1856

Stock

Commodity
Chicago

exchange business.
and Executorships

Slate and

Members

New

£2,851,562

Fund

Division

consultant

H. Hentz & Co.

BONDS

£4,562,500

conducts every description

and
Trusteeships

atomic

— Underwriters, dealers and investors in cor¬
complete picture of issues now registered with the SEC
"Securities in Registration" Section, starting on page 37.

American

Protectorate.

Capital

banking

ST., N. Y.

nation,

address

energy

in

James's Square, S. W. 1.
Branches in India, Pakistan, Ceylon,
Burma, Aden, Kenya, Tanganyika,
Uganda, Zanzibar, and Somali-

Reserve
bond

30 BROAD

own

Continued

32

page

13, St.

land

our

by Rep. Cole at the Mid-winter meeting of the New
York State Bankers Association. New York City, Jan.
24, 1955.
1 Dr. Hafstad was
formerly Director of the Atomic Energy Com¬

York City, Jan. 26, 1955.

Conference, New

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

Paid-Up

in

REGISTRATION

NOW IN

Authorized Capital

BANK

atomic power plant near

electricity secured from conventional
By the end of this century, in fact, half the new
generating capacity installed each year in our nation

before the New York University Mort¬

address by Mr. Stott

Kenya Colony and Uganda
Head Office: 26, Bishopsgate,

CHEMICAL

accom¬

to have

appear

Continued

of

work

has been

fuels.

*An

Bankers to the Government

West

reactors,

power

technical

supplement—an in¬
creasingly important supplement—to

The year 1954 was one of record growth in which
population increased by 2.8 million and reached a
people. Births at nearly 4.1 million

of INDIA, LIMITED

HAnover 2-3700

with him in the de¬

and

powetf will be a

Established

Municipal

and

Shippingsport, Pennsylvania.

are

NATIONAL BANK

Securities

the

to

the sheer
of Larry Hafstad1 and all

generation

full-scale

construction.

in

State and

full gen¬

a

total of 164 million

porate securities are afforded a
and potential undertakings in our

U. S. Government,

power

plished in a decade. Today, we are
already building our nation's first

as

who

devotion,

scientific

full

a

much as they do those
engaged in financing
First, let's
where our population stands to¬

see

day.

the

might say that population
and
household
formation
us
in the telephone indus¬

try quite

•An

DEALERS

—

thanks

velopment of atomic

I

residential

the

those associated

a very

people, industries, and markets.

SECURITIES

power

Yet

away.

hard work

influ¬

also

subject I wish to discuss with

of you
Alexander L. Stott

toward

page

atomic

wheels of factories—was

you.

concern

inflation, and does this by relying
i largely on indirect means of influencing private
behavior rather than by direct controls over

on

after man first achieved a selfreaction, it was - commonly believed

ago,

years

chain

useful

which could light cities and run the

—the

growth

or

Continued

dozen

sustaining

not

great degree, by
population and household formation

generates

tendencies

know,

you

enced, and to

our

recession

.

private

demand for
housing is influenced by many eco¬

private sector of the
economy, and carries out as much of its own work
as practicable
through private enterprise.
"Fourth,

Dis- :

at the present time.

energy

question of obtaining adequate insurance against i

.

the

on

v

questions,

is a "give away." Says it J.
disservice to keep private *

power

possibility of major reactor accidents, and poses que$r_
Hon whether it may be ' advisable to limit liability of i

) but also about possible saturation of
the market for housing.

atmosphere favorable to economic activity when
it encourages private initiative, curbs monopolis¬
tic tendencies, whether of
business or labor,
avoids encroachment

capital out of atomic

sub¬

of

power

of atomic

use

cusses

only
about the stock market, "built-in"
inflation, and the unbalanced budget,

nomic

Government

growth
,

troublesome

economy

Federal

holds

the iace of 4he slight business set-back starting in mid1953.
But
recent
annual
reviews
have posed
some

♦

the

and

extension

one

peacetime

would be doing taxpayers a

that

has great capacity to
generate jobs and incomes if a feeling of confi¬
dence in the economic future is widely shared
1 by investors, workers, businessmen, farmers and
•

private

high levels of construction have
important factor in sustaining our prosperity in

been-an

gov¬

effi¬

Sees

except

of households," and

urban living.

propositions," in the President's

"First, competitive markets rather than

virtually extinct

developments, in housing will be influenced by

past birth

are:

ernmental directives, are as a rule the most

houses

"individual heads

future

:to time..

own

of recent

among

(day and what he asks Congress to do from time
?

harnessed

A. T. & T. executive discusses background and nature

*what the President says are
j

thing to have visions of atomand another thing to get :
the job done for creating such power, Congress man Cole j
decries the fear that the new legislation opening Way to !
Pointing out it is

Telegraph Company

I appraisal.

York

U. S. Congressman from New

Comptroller, American Telephone and

gram for the future" of his Administration are
isaid

By HON. W. STERLING COLE*

L. STOTT*

By ALEXANDER

Report has set forth "certain basic propositions"
upon which the "economic actions" and the "pro¬

Copy

a

The Prospect of
Atomic Power

Factors

As
,

Cents

40

Price

N. Y., Thursday, February 3, 1955

Chicago
Miami

•

Detroit

Beach

Hollywood, Fla.

Bond

Dept. Teletype: NY 1-708

Geneva,

•

•

Pittsburgh

Coral

NATIONAL

BANK

Gables

Beverly Hills, Cal.

•

CHASE

THE

OF THi

CITY

OF NEW

YORK

Switzerland

Amsterdam, Holland

i

•

S

J
m

TO Rl

'

Net

122 Years of Service

>

•st

1¥

MEMBER

IN

THE

to

To

Active

Members N. Y. Stock

COMPANY

Mercantile Bank Building

American

50 BROADWAY,

N. Y.

•

IMainview

•

San Antonio




•

Tyler

BRIDGEPORT

PERTH

AMBOY

Orders

Ca«tadian Exchanges
CANADIAN

Public Service Co.

Executed

On

DIRECT

WIRES TO

NEW

115 BROADWAY
NEW

YORK

expiring

February

28,

1955

Hampshire

COMMON

All

At Regular Rates

We

offer
at

to

the

buy

the

current

above

Rights

market.

"Highlights"

upon

request

DEPARTMENT

MONTREAL AND TORONTO

Goodbody & Co.
MEMBERS

of New

Company
Rights

Teletype NY 1-2270

Exchange

Stock Exchange

Dallas
Abilene

Brokers

SECURITIES

T.LWATSON&CO.

The Shawinigan

Maintained

and

CANADIAN
Commission

FIRST

Banks

Water and Power

Our Customers

||

gotitfuoedt

Markets

Dealers,

YORK

STOCK

EXCHANGE

1 NORTH LA SALLE ST.
CHICAGO

Dohmion Securities
Grporatioti
40

Exchange Place, New York 5, N. Y.

Teletype NY 1-702-3

WHltehall 4-8161

IRA HAUPT & CO.
Members New York Stock Exchange
and

other

111

Principal

WOrth 4-6000
Boston

Exchange*

Broadway, N. Y. 6
Teletype NY 1-2708

Telephone:

Enterprise

1820

2

"v

(598)

For Banks,

The

Brokers, Dealers

Aztec Oil & Gas

Lone Star Steel

participate and give their

-

Long-Bell Lumber of Mo.

New York

is

Ultrasonic

Western Natural Gas

New York Hanseatic

Corporation

i

1920

trans¬

mission

and

Teletype NY 1-40
PHILADELPHIA

Direct

Private

Wires

gas

Dallas

Hartjord, Houston, Philadelphia

Portland, Me., Providence, San Francisco

day.

and

Ohio,

across

Rhode Island and New
Hampshire.
The company sells or delivers
to distributing companies for
resale under long-term contracts
gas

New

York Stock

American

120

Exchange
Exchange

Stock

BROADWAY, NEW YORK I
TEL.

REctor

Principal

Columbia Gas Sys¬

are

Consolidated

tem,

Gas,

Natural

National Fuel Gas, East Tennessee

2-7815

Natural, Equitable Gas, Tennessee

Trading Markets

American Furniture Company

Alabama-Tennessee Natural

Company
Dan River Mills

Scott, Horner &
Mason, Inc.
Lynchburg, Va.
Tele. LY 62

ing rate increases; (2)The squeez¬
ing effect of the cost of money
theory of rate-making; (3) The
saturation

(1)

Portland Transit, Pfd.
—

ZILKA, SM1THER & CO.
Portland-5-Oregon
PD15S

situation

of

the

M

the conference meth¬

sibly, for the shorter term, by the
Phillips decision which may have
the effect of stabilizing gas costs.
The

position of Tennessee has
the above plus:
(1) The development of extensive
storage reserves with a capacity
been improved by

and

an

This

647MMCF.

eventual

peak

Farben Liquid.

able

profit

Ttte. NY 14222




or

an

not

to obtain

Texas

$1.67.

to

by the

is

to

be

It has been estimated

officials that the

company

with

merger

the pipeline

believed

now

full

estimated

are

of

power

the

For

1954, earnings
at $1.80.

have

the

it

will

not

at
This

gas

actual loss.

com¬

is

case

pertinent.

The Commission decided that any

savings in taxes due to production
activities of a pipe line company
should

not

considered

be

computing the ' earnings
pipeline properties.
The
also

El

when

the

of

decision, it might
mentioned, in addition
possibly negative point.

a

Whereas in the Panhandle

case

it

the "field

price" for
by the pipe line
company, in the El Paso case it
states that since then the Supreme
Court has handed down its opin¬
ion in the Phillips case.
This re¬
quires it to regulate the price of
gas sold by independent produc¬
It

ers.

notes

leaves

the

chose
in

that

this

decision

free

Commission

the method

the

to

in

future

be

to

followed

regulating

the

wellhead price for both producers
and

pipe line companies.

It states that it is not

prepared

to permit the Panhandle decision
to

stand

would

as

which

precedent

a

exclude

consideration

of

methods arid principles in
determining the amount to be al¬

other

lowed

in

the

will

be

of

cost

produced.

gas

The

followed

of

service

same

for

reaffirms

6% return

a

(The

erty.

the

and

on

for

method

both

inde¬

the

allowance

pipe line prop¬
wanted 6Vz%

company

FPC

staff

recommended

to the squeeze be¬ 5%%.)
prices and delivery
The current dividend rate
is
prices; (3) The merger with Ten¬ $1.40. It might be surmised that
field

Production is scheduled to
of

Dec. 31, 1954
approval.
This
merger has been approved by the

stock

as

to

FPC

and

bond
a

holders

of

the

with
in

a

would

In

resumption of the growth

earnings
be

a

a

The only ob-

F.

HAnover 2-0700

Exchange

NY 1-1557

New Orleans, La. -

Birmingham, Ala.

Mobile, Ala.
Direct

wires

to

branch

our

offices

JAPANESE

O'REILLY

Philadelphia Electric Com¬
common

excellent

of

Call

or

write

Yamaichi

inexperienced
investor

Securities Co., Ltd.

as

•

ell

ls

the

user

of

the

N

York

-

Established

.

Home

111

Ex¬

1897

Office Tokyo—70 Branches

Brokers
w

vision—

knowledge

Japanese potential.

lection for the

e

with

with

se¬

& Investment

Bankers

Broadway,N.Y.6 COrtlandt T-5680

change
"Monthly Investment
Plan."

The

General

Philadelphia
Electric
p a n y

sents

Balferies, Inc.

repre¬

in¬

an

Of

vestment
over

$800 mil¬

lion

in

Charles F. O'Reilly

Bought—Sold—Quoted
and Steam
fast
growing

Gas

Electric,

facilities

the

in

"Delaware

Valley,

serves

area

miles
tion

an

and

of

LEWIS & ST0EHR, Inc.

the

of

Established

3 million.

Growth factors
future

U. S. A."
It
2,340 square

expanding popula¬

an

over

now

the

Dry

Com-

80 Broad

excellent in

are

Delaware

Telephone:

Val¬

Steel, oil and the manufac¬
tured products from the natural
resources of the area, plus the fa¬

1926

St., New York 4
DIgby 4-0985

ley.

The
the
is

new

U. S. Steel-Fairless plant

fabricators

attracting

area

A

Philadelphia

diversified industry.
additional steel supply from

Continuing Interest in

a

Southern Advance Bag & Paper
Grinnell

the

to

and in turn both create new

jobs and demands for homes and
Labor relations in

j

Corp.

Kalamazoo Vegetable
Parchment

Phil¬

adelphia Electric Co. have at all

Keyes Fibre Co.

been excellent.

times

The common stock of this

com¬

qualifies as an investment
grade
security.
The
economic
soundness of the territory served
and
the company's conservative
financial policies give it double
appeal. The growth in the com¬
pany's territory has been steady
pany

and the

source

versified.
enues

and

of the demand di¬

Total

operating

doubled

have

since

BOENNING & CO.
Philadelphia 3, Pa.

John

earnings and dividends
per
share have increased 50%.
Average cost for domestic use is
2.82c per kwh. and compares fa¬
vorably with the average cost of

Stetson Pfd.

4s, 1990

1944

net

B.

Public Service Coordinated

rev¬

Pocono Hotels Units

Leeds & Lippincott Units

Cambridge Bldg. 4s, 1963
Pratt Read Co. Common

3.31c per

kwh. of four other com¬
panies in contiguous territory.
Philadelphia Electric Co. is

sociated

with

Atomic

Power

as¬

De¬

velopment Associates in joint re¬
search for generation of power by
"Atomic Energy."
This develop¬
ment, when successful, will be no
threat to existing values of the
property, but will supplant the
use of coal, oil or natural gas in
the production of steam for the
generators.

competitive

Atomic

Energy as a
fuel, may be in use

within five years.
One of the primary appeals of
Philadelphia Electric Co. common

stock,

as an

investment is the sta¬

resistance to recession conditions.

sidering all of the above factors,

investors

investors

is

stock

my first,
choice in any investment program
for stability of income.
It is an

pany

have unusual appeal

may
to

The

development.

dividends have

SECURITIES

/

Stock

Common

dividend

hearing has, been ranged from 20% to 331/3%. Con¬

held by the FPC.

Stock

Stock Exchange

market.

bility of the demand for its prod¬
uct, and its exceptional inherent

stock

logical

the past these

York

American

traded

Philadelphia Electric Company

services.

Paso

be

raised

at

J. W. Sparks & Co., Philadelphia, Pa.

help create

Paso

is

Over-the-Counter

cilities of the port of

El

is not subject

companies and

the

issue

recent

decision

the storage;

effective

in

The

market.

increasing earn¬
ings by about $0.50 per share. The
major portion
of
this will be
through tax savings. In this con¬
nection, the FPC decision in the

a

(2) Its development of trans¬
portation contracts under which it

subject

this

Produc¬

Tennessee

portion of the
pendent producers and pipe lines.
New
York-New
Jersey market
On the other hand, the El Paso
from Transcontinental which did

be

25 Br*»i St, lw Y.rk 4, N. Y.

that

sale of off-peak

storage also has enabled the
pany

nessee

Phowi HA 2-SIES

in

venture

tween

Members New York Stock
Exchange

make

New York City
and New England a profit¬

area

no

will

the

of

force the

Badische Anilin

earnings
year

produced

77BCF

refund

a

gathering tax, reducing operating

allowed

on

represents

unconstitutional

gas

serving

Bayer

the

had

day deliverability from storage of

Hoechster Farben

of

greater

reliance

of

Active Trading Markets in

Earnings for the 12
months through September, 1954,
were
reported at $1.80.
$0.13 of

of rate

a

of increases could

hand.

at

much

including

(2) The Panhandle decision
with regard to allowance of field
price for gas produced; (3) Pos¬

Knitting Mills

Pacific Coast Securities

com¬

od;

Portland Transit, Com.

be

More rapid handling

cases,

Consolidated Freightways

—

the less

of

petitive markets and the economic
limitation imposed on rates
by
competitive fuels.
pipe line
companies has been improved by:

Trading Markets in

Jantzen

ago

ing reasons: (1) The squeeze be¬
tween rising field prices of gas
and the delay inherent in obtain¬

The

Active

another period

stock

common

approximately $30 per share rep¬
an interesting situation in

Stock

tion will result in

of the total.

investments
in pipe line companies were un¬
attractive largely for the follow¬

near

LD 33

in

reflected

been

not

per share earnings
largely for the reasons noted in
the beginning.
It is believed that

about $2.00.

years

and
1952.

to

net

England companies.
Revenues in 1953 provided by the
first two named were 38% and
Several

Commonwealth Natural Gas

have

increased

properties

27.2%

Gas Company

rapid

a

up

Since that time, increases in rev¬
enues

that Tennessee Gas

seem

resents

w

Louisville Gas & Electric and va¬
New

per

*

growth

•Earning

rious

daily

a

1.6BCF

had

company

profitable

Gas Corporation,

Natural, Inland

and

of

more.

Appalachian this, however,

the

in

and New England.

customers

$26 million
The

Pennsylvania, New York and Mas¬
sachusetts into portions of Con¬

principally

stations

has pending applications for

ancj
Miller

K.

James

Other extending

area

it would

Transmission

CHARLES

The company is engaged in
million expansion program

$79

a

Tennessee to a

New

19 Rector St., New York 6, N. Y.

15,

capacity

Members

Members

years.

exceptionally aggressive and

delivery

necticut,

Members

five

Symonds has

compressor

-

Steiner, Rouse & Co

is expected to

or

under Mr. Gardiner

Nov.

Bought—S old—Quoted

Company—

2.)

1954, the system in¬
cluded 8,150 miles of pipe line, 27

divides, one branch ex¬
tending into West Virginia and

frfCpONNELL & (VX

applied

or

of Tennessee

On

system

Since 1917

rates

management

been

point in east¬
Kentucky
where
the

Rights & Scrip

the

in

increase

Electric

Charles F. O'Reilly, J. W. Sparks
& Co., Philadelphia, Pa.
(Page

in the interest of the stockholders.

Valley
in
Texas through

the

annual

by them. Following this round,
purchase contracts are such

The

ern

Specialists in

flecting

Pomeroy,

currently

is

increase of *$9.9
basis, re¬

an

an

that its cost of gas

from

sissippi

on

stabilize for four

theRioGranae

M i s

million

its

system

kansas,

applying for

It

charged by its suppliers

Louisiana, Ar¬

to

Boston, Chicago, Cleveland,

the last few years.

Miller,

&

Philadelphia

in

increases

rate

Louisiana Securities

Schoellkopf,
Inc., New
City. (Page 2.)

Hutton

was

substantial

eral

K.

James

nor

raised by one stock¬
holder owning 350 shares. Prompt
approval is expected.
(4) Tennessee has obtained sev¬

for

deliv¬

or

extends

Exchange

120 Broadway, New York 5

pipe

a

of natural
for resale.

ery

The

Associate Member

BOSTON

and operates

system

the

sale

The

stock.

common

company owns

line

Transmission

Gas

Tennessee

for

WOrth 4-2300

City

security I like best for 1955

Company

*

be,

to

v

'

<

.

Alabama &

Tennessee Gas Transmission Co.—

sell the securities discussed.)

to

jection

Tennessee Gas Transmission Company

Strong Cobb

intended

not

are

particular security.

a

.

Participants and

Their Selections

York

The

Stock

offer

MILLER

K.

Steel

Established,

as an

Schoellkopf, Hulton & Pomeroy, Inc.,

Scott & Williams

American

they to be regarded,

JAMES

Sulphur

for favoring

(The articles contained in this forum
•re

Maule Industries

Portsmouth

reasons

.Thursday, February 3, 1955

Week's

This
Forum

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

in the investment and advisory

Maine Central R. R., Common

Pan American

Security I Like Best

A continuous forum in which, each week,

Harshaw Chemical

.

The Commercial and Financial Chronicle..

\

These

defensive

stem from the

characteristics

high percentage of

Continued

Samuel K. Phillips & Co.
Members Phila.-Balt. Stock Exchange

Pennsylvania Bldg., Philadelphia
Teletype

N. Y. Phone
COrtlandt 7-6814

PH 375

N. Q. B.
OVER-THE-COUNTER

14-Year Performance of

35 Industrial Stocks
FOLDER

page

15

ON

REQUEST

National Quotation Bureao
Incorporated

46 Front Street
on

f

INDUSTRIAL STOCK INDEX

New York 4, N.Y.

Number 5400

Volume 181

..The Commercial and Financial Chronicle

.

(599)

INDEX

Business

Conditions, Now and
Future—Replies to Questions

In

By WILLIAM F. BUTLER*

the

trends

economic

recent

as

immediate

future.

the

and

outlook

The Prospect of Atomic Power?—Hon. W.

—Alexander

Page

Sterling Cole

Cover

the Demand for Housing

L.

Stott

Cover

PLAIN & FANCY
When

Dr. Butler presents his views on ques'ions submitted by the
Joint Committee on the Economic Report, covering such matters

Articles and News

Factors Affecting

Consulting Economist, Chase National Bank, New York

Business Conditions, Now and in the Future: Replies to Ques¬
tions—William F. Butler
-

-

Stresses

importance of interpre.ing
carefully, since there is always a margin for
hut adds: "We need to be alert to economic develop¬

The Economic Philosophy of the President's Economic Report
—Heinz E. Luedicke

4

Smart

5

ments."
tional

Concludes, "the odds

are

high that

very

where between $370 and $380 billion
QUESTION NO. 1
What

t'.e

are

facts

in

ered

respecting

third

the

offs, part time employment, pro¬
ductivity, production, private in¬
vestment,
consumption, govern¬

ous

demand for goods and serv¬

ices, and savings since 1952?
Since I

I

shall

confine

over-all
nomic

remarks

my

to

It

that

me

best

of the economy were spread

areas

a

time

almost

in

is

the

The

F. Butler

William

in
to

shifting from

defense

a

normal

more

a

pros¬

security expenditures
tripled between 1950
the second quarter of 1953—
than

when

they reached a peak-rate of
$54.3 billion.
In the final quarter
of 1954, national security expen¬
ditures

down

were

to

rate

of

drop

of

a

That's

billion.

$40.6

a

$13.7 billion in a year and a half.
And $10 billion of the drop came
during 1954.
The widely-advertised inventory

...

re-adjustment
to

was

sult

fense

in

and

1953

1954

considerable extent

a

the

of

decline

sharp

in

shift

The

outlays.

a

de¬

from

Consequently, the truly remark¬
fact

that

is

the

1953-54

re¬

of the mildest

cession

was

one

record.

In

face

decline

in

national

of

a

$24

on

billion

security

ex¬

penditures and inventory buying,
Gross National Product dropped
only $14.4 billion from top to bot¬
tom.

That's

a

real tribute to the

resiliency of the private economy.
A

significant point about recent

economic trends is this: the

business

of

smartly
last
.

-

«

*A

Joint

the-

activity

is

Joint

trends

activity

up

fourth quarter of
Total activity recov-

in the

year.

statement

of

$10-15

of

potential

that there

other

important

discernible

in

The ratio of

91.4%

on

the

Economic

12

recent

markets

ex¬

Prices Today

.

Bank's

to

moved

"Business

Brief"___l

in

George F. Bauer Cites "Praise for Simple Definition of
Convertibility" (Letter to Editor)
Report

Keynote

Cautious Optimism

Teletype: NY 1-4643

.

wires

Direct

Philadelphia

to

20

_

Salt

Lake

&

City

Still Business
i

___

Fallacies of "Controlled Inflation" Discussed by Guaranty
Trust's "Survey"
;

22

Diesel Elec.*

Consol.

22 !

$16 Billion

Elco
23

President's Message

92.8%

during

on

•

Health Reinsurance

Corp.

,

Guild Films, Inc.

24

Hycon Mfg. Co. Pref'd*

Regular Features

1954.

a seemingly small, but very
significant, change. The Univer¬
sity of Michigan's surveys of con¬

As We See It

Stancan

(Editorial)

Uranium *

Cover

Bank and Insurance Stocks

*Prospectus

20

Request

on

sumer

buying plans also point up¬
people's evaluation of
buying conditions have increased
wards

from

—

Business

Man's

Bookshelf

8

__

Coming Events in the Investment Field

We

1953 to 118 in October

While

(2)
risen

period,
still

Dealer-Broker Investment

1954.

private

has

debt

rapidly in
the post-war
ratios of debt to income
reasonable.

seem

to be in

seem

Recommendations_____l_

Thus, we
position to handle

a

moderate

in

rise

all

types

From

L__,

Washington Ahead of the News—Carlisle Bargeron

Mutual Funds

Stock
rose

market

price

than

more

aver¬

40%

last

As measured by past re¬
lationships to earnings and bond
year.

interest

prices
rise

rates,

were

stock

common

very

began.

At

low

the

when

end

the
1954

of

they stood somewhat above their

long-term

relationship

basic factors.

stock prices are not

out

line

of

dends,
values
that

to

However,

nearly

with

interest

these

common

earnings,
rates
and

so

they got in past periods
preceded a major break in
as

35

(4) The

recent

in

surge

busi-

23

Our Reporter's Report...

8
20

___

Railroad Securities

28

.4

Securities Now in Registration.

___.

Prospective Security Offerings

The

the market.

hour

5

__

Public Utility Securities

Salesman's

Philadelphia.. Chicago.. Los Angeles

13

__

Our Reporter on Governments

The Market... and

Exchange PI., N. Y.

Direct Wires to

8

Bankers

40

Teletype NY 1-1825 & NY 1-1826

30

....

Observations—A. Wilfred May

Securities

MACKIE, Inc.

HA 2-0270

____

News About Banks and

far

divi¬
book

Notes

&

10

Indications of Current Business Activity..

NSTA

(3)

more

securities

15

of

debt.

ages

in

trading markets

over-the-counter

250

Singer, Bean

8

Einzig: "Instalment Credit Inflation in Britain"

__

a

maintain

than

12

_

index of 100 in Sept.-Oct.

an

on

page

26

Corner

^

Trading interest in

16

___

saving^

17

1

_.

You—By Wallace Streete..

Security I Like Best

,

37
41

__

__

___

The State of Trade and Industry

2
*

4

Washington and You

Cinerama Productions

Twice

44

Weekly

1

Drapers'

land,

c/o

Gardens, London,
Edwards & Smith.

E.

C.

Corp.

Eng¬

Cinerama Inc.

Copyright 1955 by William B. Dana
Company

FINANCIAL CHRONICLE

PREFERRED STOCKS

Reg. U. S. Patent Office

Reentered

second-class

as

matter

Febru¬

25,
1942,' at the post office at New
York, N. Y., under the Act of March 8, 1879.
ary

•

Schenectady

•
•

Glens
Worcester

DANA

Place,

COMPANY, Publishers
New

York

7,

N.

Y.

Subscription

REctor 2-9570 to 9576

D. SEIBERT, Editor &
DANA

SEIBERT,

Every

Falls

Thursday

vertising

state

and

issue)

statistical

records,

Publisher

President

Chicago

city

news,

Offices:

3,

111.

135

news

—

(com¬

quotation

bank

clearings,

news,

etc).
South

(Telephone

La

STate

Pan-American

Union,

Dominion

Canada,

Salle

Corp.

St.,

2-0613);

*Memorandum

of

$48.00

per

$51.00

year;'

per

Bank

and

Quotation

Note—On

Record

—

request

in

year.

Countries,
$55.00 per year.
Other

$33.00 per year.

on

S.
of

JohnR.Boland&Co.
INCORPORATED

Publications

ad¬

market

Rates

Subscriptions
in
United
States,
U.
Possessions, Territories and
Members

Other

and

Monday

every

issue

corporation

and

Other

(general

Reeves Soundcraft

'

Thursday, February 3, 1955

TELETYPE N. Y. 1-5

Chicago

Park

WILLIAM

Stock Exchange

•

B.

HERBERT

ST., NEW YORK 4, N. Y.

Boston

Broadway, New York 4

17
DIgby 4-4970

plete




Excess Profits Taxes

Re¬

TELEPHONE HAnover 2-4300

•

on

That's

Members New York

Nashville

J. F. RE1LLY & CO.

12

—_

from

up

Spencer Trask & Co.
•

"

42

25

Albany

*

Peter Guy Evans Warns Controllers

WILLIAM

BROAD

*

1929 Discussed in Chase National

vs.

The COMMERCIAL and

25

25

^

have

increasing strength.
spending to

Continued

specialized in

18

Douglas MacArthur__
*

Stock

Published

have

'

consumer

income

26, 1955.

For many years we

Sterling Oil
14

Walter McAllister Places Home Financing Mortgage Needs at

Consumer

post-tax

South Texas Oil & Gas

time I'll merely

save

been showing

by Dr. Butler before the

Committee

port, Jan.

curve

turned

(1)

Schwarzschild, Jr

Purchasing Agents

number

a

12

—

Commit¬

me

to

seems

Maule Industries

•

1955 Favorable Outlook

Guaranteed Annual Wage—Walter P. Reuther

a

Higgins, Inc.

re¬

building
inventories to cutting
them placed a $10.2 billion drag
on
the
economy
(as measured
from the second quarter of 1953
to the third quarter of 1954).
able

Product

the

estimate

perience. To

National

and

that

11

SEC, Business and the Investor—Ralph H. Demmler__i

Why

WHitehall 4-6551

11

Stores"—Roger W. Babson

—W. H.

STREET, NEW YORK

.

10

_______

The

today!

of

list them:

perity.
more

below

Staff's

are

en¬

Murphy

Electric Industry Sponsors Largest Investment Program
—K. M. Robinson
Two Important Factors in

us

Cinerama Productions

High is the Market?—Norman Steelman

"Discount

economy's potential.

National

Now, it

How

prices

our

7

Ahead
9

be

is moving up.

vigor¬

boom

morning—is

the

—

will

But, as I just attempted
demonstrate, business activity

to

ously with the
tailed

this

fact

much

sure

output.

econ¬

problem

significant

am

below

tee

has been

coping

I

billion

is

in these terms:

omy

third

Gross

past

years

Construction

Home

A Plea to End Wars—Gen.

current level of economic

to

of

A Businessman's View of 1955—William B.

This

once.

made

economy

two

at

which

what has been

the

period.

everything—produc¬
employment,
man-hours,
orders, consumer expendi¬

A

to

characterize

happening

considerable

over

up

the

way

In past re¬

periods, upturns in various

covery

tures, corporate earnings—moved

to

seems

pre¬

only vigor¬
broadly based. If you
run
through the catalog of eco¬
nomic
statistics, you'll see that
vast majority of series was mov¬
ing up in strong fashion in the

new

opments.

Busy Period

but also

tion,

devel¬

A

The upturn was not

mem¬

eco¬

6

Financing Outlook—Frank H. Morse__

—Norman P. Mason

final months of 1954.

that other

assume

bers, of this panel will deal with
specific trends in the items listed,

1955 Municipal

WALL

Telephone?

one-

over

lost in the

ground

6

plain,

to

talk

Obsolete Securities Dept.
99

The Current Business Outlook—Marcus Nadler

months

ceding 15 months.

growth, labor force,
employment, unemployment, lay¬

na¬

some¬

annually."

three

population

ment

gTOss

product in the fourth quarter of 1955 will stand

Cookies—Ira U. Cobleigh__^

Factors in Credit Policy Decisions in 1955—Roy L. Reierson—

comes

fancy. See

forecasts most
error,

it

obsoletes—our

3

—

is

relating to

3

Monthly,

30

Broad

Street, New York 4, N. Y.

(Foreign postage extra.)

account

of

the

fluctuations in

the rate of exchange, remittances for
for¬
eign subscriptions and advertisements must
be made in New York funds.

BOwIing

Green 9-3249

Teletype:

NY

1-4487

4

(600)

The Commercial and Financial Chronicle

\

(1)

The Economic

Philosophy ol
The President's Economic Report
By HEINZ E. LUEDICKE*
Editor

"Journal

of

Heavy

shift

reliance 7 on make¬
the
leaf-raking

work

of

variety;
(2)

economic

Luedicke, in giving an appraisal of the economic philoso¬
phy and facts underlying the President's Economic Report,
1955, discusses the aims of the Employment Act of 1946, the

(3) Any
policies
ultimately result in

growth" and the "stable price
level" philosophy; the function of "maximum employment"
goals and the future of the Business Cycle. Stresses need for
sufficient profit incentives to preserve the dynamic character
of the economy and warns against government attempting to
eliminate or correct all economic maladjustments.

basement
The

of

third

under the

the

established

Employment
promote

Act

power."

qualification—falling

"general welfare" term
important

the

one

unwittingly,
shrugged off

e

g

is

"to

employment,
purchasing

and

spell

of

ve

/

history— is

p

employment, production and pur¬
chasing
power"
is
couched
in

of

cause

political

im-

c

These

Heinz

E.

Luedicke

phrase still survives as a
political argument, but not as the
basis of responsible economic de¬

those

"full

actually could
relatively easy
a

"job"

mean

for

*A

employment"
accomplished

be

if

it

were

its

inter¬

able

dictatorships have
accomplished this.

to

mittee

on

the

by

Dr.

Luedicke

and

obligations

national

and

considerations

essential

of

of

Its

actions

manner

In

promote

are

under

the

Em¬

to be used "in

competitive

enter¬

prise and the general welfare."

pre¬

Joint

Congressional. Com¬
the Economic Report, Jan. 26,

These

restrictions,

imposed

the Employment Act, rule out:

1955.

have

ently

denied

the

of

the

that

Federal

ligations

discharge

the

effective

change of its firm

name,

of inflation.

ger

Others, such
H.

ner

the

two

Professor Sum¬

as

have

admitted

objectives,

resolved

"in

the

but

by

ment

Bell

Teletype

—

HO 42

,

Telephone ATwood 8221

of

problem

stable price

1946

far

as

in

the

price

from

the

economy

—

but

by necessity2

has

been

under

there

war,

boom

1950,

the

not

by

our

—

the

level

of

long

choice

economy
of

Following

first

the

un¬

goods replace¬
and, starting in mid-

of

Twice

War

and

maintaining

defense

war

during

stride

high

a

period

the

of

economy

faltered

under

once

—

Initial

for

state

This

the

was

dropped

below

second

successive

week earlier.

a

that during the

It stated

claims

new

than

week

a

the

week

1,963.800,

down

from

1954

the

week.

This

The calculated risk flavor of

other

These
gen¬

erally

realized, particularly
in
1953/1954, and they were suffi¬
cient, in both instances, to cushion
decline

before

remedial

both

"inflationary."
of the two

none

the

by

any

price
this.

prove

1

Is

in

It

Reprint of

a

of

to

on

discussion

and

UAW

of

President

.

.

.

factories

began

list

with

"How

first

time

since

August,

levels,

year-ago

our

steel demand from

now

whether

not

or

maintained

automotive
the

are

trade journal::

support

following

for steel

optimistic

production

factors,

be

can

declares

this

k

(a)

A strong plate market potential to be realized because of
large line pipe projects; (b) renewed freight car buying by rail¬

roads; (c) increased demand from the construction industry and,
(d) the beginning of a seasonal pickup (on top of general re¬
covery) in steel order volume.
But what has caused

some

consumers

to

put

more

steam into

their steel buying has been the recognition that their steel inven¬
tories are too low in the face of their own operations and in view
of the international picture.

Some of these customers

the

the

on

run

materials

when

has

not

and

some

Korean

probably

are

will

War

are

broke

recalling
Such

out.

again invade the steel
"new look" at their steel

taking a
changing their buying pattern, continues

Many steel customers have realized only within the past week
making forward plans for steel consumption they face a

that in

labor and price situation in steel.

Further, an equal if not heavier
impact in defense procurement and the realization that there is
not

much

too

leeway

between

the

present

operating

rate

and

capacity operations.
overtime

Strong
car

and truck

and Saturday operations boosted
United
production for the month of January to an

estimated

750,500 units—657,000 cars and 93,500 trucks, "Ward's
Reports," reported on Friday of last week.
peak thus far had been the 495,522 cars and 125,772 trucks

Automotive
The

Continued

on

Our Office Will Be Closed

page

to

—

Friday, February 4th we'll be in Denver

Bad

Jour¬

Walter

We're

boom;

at¬

tending the National Western Mining Conference.

P.

put every able-bodied man and woman
After we had all the able-bodied

men

of

taking this opportunity to talk

to

and securities dealers—to get a better

what's

going

on

mining

picture

in the field.

to work.

82 Beaver

people

Street, New York 5, N. Y.

Telephone: BO 9-5081

Teletype: NY 1-4917

Direct Wires to Salt Lake




City

on

fathers
ment

and

and

the

job we got the grand¬
grandmothers out of retire¬

we

them

work, and
every major company had a very simple
employment policy—the employment di¬
rector
was
instructed, when somebody
applied for a job, not to ask any ques¬
tions, but just to feel them, and if they
were
warm,
put
them en the payroll."
put

to

Speech before the Economic Club of New

York, Jan. 17, 1955.

a

not

27

Sumner

"The

a

companies
a
bigger backlog than at any time since the downtrend
began in steel 18 months ago. Lost in the shuffle of talk about

buyers'
page

Reuther describes this labor overstimula¬
as
follows:
"When
the war
came

along

the

But for several weeks

rise

tion

we

the

led

confirms

Profesor

Editor

York

dis¬

Commerce," September, 1952.

CIO

fell—by

and for other steel products has surged forward.
the past week order books at some steel

Within

On
on

also

an

was

not

merely

the

fact

episodes

instances,

between

H. Slichter and
2

taken

The

does

claims

new

sources

States

speed.

pronounced

level

both

Inflation?"

nal

attained

and

measures

instances must be classi¬

as

followed
in

it

claims

show

artificial
than

claims

new

Far Eastern policy has given
already strong steel market, says "The Iron
Age," national metalworking weekly this week. Emphasis recently
has been on auto buying of steel and the tightness in cerain flat-

additional zip

But many users are

potent

new

department said.

and

more

which

in

brought total

New

marked

this trade authority.

applied.

industries.

compensation

1953, that state insured unemployment fell below
the

supplies

instances,

the

scat¬

were

ending Jan. 15, insured unemployment totaled
7,800 from the preceding week and off 41,400

market.

'were

below

There

1955 week, 43 states reported fewer

before.

and
then
again
in
1953/1954 under Republican lead¬

both

18%

were

ago.

week

It also

week a year ago.
In that week,
34,200, the Labor Department noted.

ership.

leadership

far

year

the 410,600 new claims recorded in the correspond¬

hysteria

were

claims

a

unemployment

Democratic

Continued

at

1954.

dropped
35,500 to 320,800 during the week ended Jan. 22, the United States
Department of Labor observed.

so

persists.

this

and

1949/1949

now

expenditures

the cold

as

the

influence

was

Korean

need

announce

under the management of Irwin Glaser

during

consumer

ment

that,

New York office

is

phantastic

World War II that permeated

that

a

level

degree of overstimulation
whole

in

the opening of

claims

rolled steel items.

Starting

fied

City Stock Exchange

the

as

concerned.

The

Salt Lake

in

week

tered layoffs in textiles, apparel, tobacco and metal

of

gradual rise

similar

In

Employ¬
through 1954

serious proportions

Members:

the

previous week and 20% less than

3,600 drop, followed by Illinois with 2,400 fewer and Indiana with
2,200 fewer.

maintaining maxim
employment,
production
purchasing power without a

the

HAVENOR-CAYIAS, INC.

insurance benefits, there were decreases in
claims, according to the most recent reports.
Continued
claims were 6% higher than in the preceding week and 4% above

ing

inconclusive

In

TEXAS

unemployment

economy

a

ago.

gains in the number of continued claims filed

initial

to well below

Still Inconclusive

Act

is

year
were

claiming

The record for the
period from
the
enactment
of
the

stimulants
FIRST NATIONAL BANK BUILDING

for

a

While there

of

tually preferable to

in

Investment Bankers

the like week

by

level."*

still

production in the latest reporting week ended Jan.
10% from the level of the prior period and was 2% above

rose

it

by the United States a
rising price level is ac¬

broke

FRIDLEY, HESS & FREDERKING

Lumber

15,

kind

over-stimulation,

HOUSTON 2,

have

possessed

slowly

slightly under the all-time high established in the week

were

New

Slichter,

for
last

than a year ago.
In the past month awards have averaged 67%
higher than during the same period of 1954.

existing conflict between

these

January 20th, 1955
to

536

ob¬

the

Employment
Act necessarily involves the dan¬

the
announces

consist¬

Government's

under

equalled

Bankers

^

Heavy civil engineering construction awards continued at an
unusually high level. The value of contracts in the week ended
was unchanged from the
preceding week but 51% higher

currency?

Keyserling,

the

Investment

Index

Jan. 27

all

at

employment,

strong upward forces.

FRIDLEY & HESS

Production

A slight rise was evident in total industrial
production
the country as a whole in the period ended on
Wednesday of
week.

last

Liberal economists, such as Mr.

calculated to foster and

free

Price

Auto

of June 24, 1950.

insisting

Leon

and

a

of

versus

Level

maximum

on

stable

a

m u

policy." And

ployment Act

Industry

Food

Business Failures

The output of steel continued to show forward
progress and
the number of automobiles assembled in the week ended Jan. 28,

production and purchasing power
compatible with the maintenance

Record

to

suc¬

is

able, willing, and seeking to

needs

other

merely to provide

everybody

statement

sented

times

Price

policy

a

boldly

threefold:

only such means as are
"practical" and "consistent with

(3)

cessfully

by any Ad¬
applying the Act.

use

work.
Various

used

in

(2) The Federal Government is
to

preted to

of

Growth

Stable

Is

work.

bate.

of

choice

or

II

consider¬

(1) The Act charges the Fed¬
Government to provide "use¬
ful"
employment
opportunities,
including self - employment, for

ations.

goal

are

the

eral

The

A

be

to

on

Yet

one.

ignored.

or

Maximum

that

its
and

1 i

methods

be¬

places

constraints

ministration

employ-

economic

p

able

from

ment"

which

language

phrase

"full

a

dictator¬

the Employment Act
"to
promote maximum

em-

1 oyment."

away

a

Important Constraints

mandate

Congress
rightly
shied
the

between

and

Actually,

often confused
with "full

difference

economy

ship.

its

lati

s

the

free

partly

—

i

1946

of

is, the Employment Act
speaks
only
of
persons
"able,
willing and seeking to work."
These
latter
two
qualifications

currency.

which, wittingly
all
too
often

is

it

As

the

This

because
1

of

maximum

production
goal

aim

and

Trade

Commodity Price Index

would

further de¬

It

process,
they
have
even
dropped two of the personal qual¬
ifications of the Employment Act.

of 1946

The

that
a

—is the most

that

Act

Carloadings
Retail

State of Trade

as

tions, and

conflict between the "maximum

of the Employment

Production

Electric Output

by

the Federal Government—such

replacement of private enter¬
prise in the field of capital in¬
vestment
unless
private
enter¬
prise cannot fulfill certain func¬

Commerce," New York

Steel

The

the

Dr.

The Aim

functions

Thursday, February 3, 1955

r

Any large scale exercise of

additional

...

It's

our

business—we specialize in natural

securities. We'll re-open as usual

Bay Securities Corp.
115

•

on

resource

Monday.

Farreil Securities Co.

Broadway, New York 6, N. Y.

29

Volume 181

Number 5400... The Commercial and Financial Chronicle

(601)

partly

Smart Cookies

Observations.

t

A

THE AMERICAN CORPORATION TODAY—
Social Tool
Back

ing

in

that real

Private

the

dently

to

arena,

their shares

after-panic

pre-atomic

Berle,

Jr.,

together

of

our

now

elder

mid-century,

(but ever-vig¬

o

cookie from

their

entity,

which

also

may

classic in the

course

a

of

is

revolution

of what¬

going

On.

oak.

Adolph A. Berle, Jr.

coi

S

recognize

Which

Need for Realistic Re-appraisal

that the

private economy boys with out-dated
arguments persist in fighting the previous war, Mr. Berle pleads
for realistic reconsideration of the
corporation's role

today

both the pro-s and the con-s.

Characterizing

the

by

force

in

mid-century
America, wielding a power far beyond the wildest imagination of
the Adam Smith
laissez-faireists, he sets forth the central theme
that the dominating
corporations, which already have a conscience
(or else accept direction from the conscience of the government),
that their

sense

corporations' conscience

as

a

of ethics is built into institutions.

can

be invoked

as

a

Thus

subject to their power.
"Twentiethcentury capitalism will justify itself not only by its material outproduct, but by its content of life values. Within its organization
and impact are lives of many millions of
men; and these lives
the first concern, not the

by-product, of our century. In Amer¬
thought, an economic system, like a political government, is
made for men," writes Berle.
ican

Their Vast Impact for Good

Depicting

industrial

an

community of intense concentration
limited competition, Berle envisions
a
system of power
centers, wherein the great corporations serve constituencies which

with

look to it for both service and jobs—with vast
omy

impact
development, and

whole, its long-term
foreign policy.

as

a

nation's

the

on

even

the

towards

a

higher moral behavior code and

for making a variety
contributions, philanthropic and spiritual, to their

country's welfare. "It
officer of General

may

have been naive public relations for

Motors, proposed for confirmation

of Defense in the Cabinet of the
was
was

good for General Motors
good

for the country

could have adduced

an

United

as

Secretary
that what

say

good for the country, and what

was

was

States, to

good

impressive

for General Motors;

array

but he

of statistical fact to back

Continued

on

page

16

readers

Biscuit

them

Nabisco,

Ritz

Crackers?

cannot

you

recall

a

You

of

Lorna

a

don't

have

is

has

for

itably too.
ord

or

to

be

to recall all these, for Na¬
out

been

turning
prof¬

decades—and

Even its dividend

sweet—an

cash

unbroken

distributions

rec¬

skein

in each year

since 1899.

idea,

Any
tional

however,

Biscuit

producer

that Na¬
merely a static

is

and

of

purveyor

advertised baked biscuits is

The

erroneous.

well-

highly
is

company

far

the largest factor in its
industry; and both in respect to
gross income and diversity of its
output, is displaying a consistent
and intelligently directed expan¬
sion, and setting the stage for
substantially

augmented

The biscuit

National

quently
has

35%

case

sought

sales.

of

to

now

here

efficiency,

make

nearly

as

operating

automatic

as

For example, in the past

years

it has

$100 million

laid

out

over

(almost entirely de¬

rived from retained earnings)
modern

equipment and plant.

newest unit in

for
Its

Chicago which be¬

operating in 1953 is

gan

of

Conse¬

management

stressed

years

processes

seven

the

In

Biscuit, labor costs
smart

for

and

had

factor.

about

of automation.

a

marvel

It's very busy now

turning out $70 million in crack¬
ers

cookies

and

what

is

-

affords

to

three

deliver

flour;

annum

per

from

the

balance

current

assets

sheet

that

bilities

pressure

pleased to

announce

that the undersigned

ten

of

sirable

$43.8

stories

high. From that emi¬

general investment business formerly conducted by

the materials flow down by
gravity
into
mixing
machines
from whence the dough gets de¬

John Kormendi

ployed

onto

band

blocks

long,

where

company

has been formed

as

the

successor to

the

Company, established in 1936.

million.

it

twelve
is

cooks,

groceries and supermarkets
the land.
One long
virtually continuous process from
sens,

Magowan

throughout

Clifford R. Walker

dough to dividend!*—
are

the Directors of the

newly formed

company.

pleted

&

Co., Inc.

Street, New York 4, N. Y.

Telephone: Dlgby 4-6765

February 1, 1955




plant

oven

due

to

be

Not

only

has

BI

done

ver¬

Whereas,
as
you
may
have
gathered from the above, National

job in plant efficiency but it has
through the years been adding
breadth

and

diversity

to

Biscuit

Shredded
it

added

years

BI

ago

Wheat;

ments in its

recently
Cereal Co.,

ulation

Honnies, plus

almost

Canadian pet food

Brothers

new

lines

mous

ing

plant

lated and rapidly expanded home
cake mix market.
There's

and

also

Mexican

a

Fabricas

Modernas,

com¬

S.

A.,

liaison

to

due

crackers

and

Saltines.

(Useful

for

Not

to

be

treatment
Brand

not

grow

so

that

over

the

you

$10 million a year just
and I may remember

Switching
cail

to

over

gain

were

lion

earnings
that

1953,

order

foreseeable

due

advanced

partly

V*

3 rre

factory

landmark

Street).
oven

(to take the place of
which has become a

on

The

York's

New

goal

production

is

(it's

14th

90%

band

about

80%

now).

Electronics,
added

to

too,

promote

have

been

manufacturing

in

in

qualities

evidence

future.

never

for

The

rocket

BI

like
are

to

Swain

G.

The

Financial

Chronicle)

ANGELES, Calif.—Edward

Harris.

is

now

Unham

affiliated

&

Co.,

523

with

West

to

Taber With

Managed Inv. Programs
(Special

SAN
E.

total

not

may

Robin E.

$359

have

admirable

continue

LOS

in

sales should

shareholder

Harris, Upham Adds

$220 million; 1950, $296 mil¬
and

term

finan-

some

million. For
something
above the $360 million mark. Net
1954

re¬

and, in
larger dividends.

has

(Special

sales, year by
year, which has been both steady
and
impressive.
1946 net sales
a

should

Sixth Street.

aspects, National Biscuit has

shown

pref¬

products, and

General
Dynamics; neither
they likely to fall out of bed.

by

Nabisco and its assorted goodies.

customers

efficiency,

These

boast.

themselves; and National Biscuit
spends

with

certainty,

enjoyed a seremtv,
stemming from market stability
and reliability of income, which
relatively few companies can

BI

do

in

plus constantly increas¬

long

Nabisco

neglected in any
is
advertising.

of

names

sales

to

Nabisco

course,

The

shares

of Ritz

rise

sult in higher net income

agreement)
Premium

fi¬

the development and expansion of

should

with

add

sustained
for

erence

recently concluded
Motta, S. P. A., for Italian
production
(under a royalty
a

steady

mathematical

due

Co., makers of the fa¬
Dromedary line of packaged
dates, fruits, etc.
More particu¬
larly, however, the Hills Brothers
deal brings Nabisco into the re¬

The

should

company,
a
Pennsylvania
dog
meal plant, and most important
of all, it acquired in 1954 Hills

pany,

for

sales has already been referred to.
The steady increase in our pop¬

maker of Wheat Honnies and Rice
a

notable

equity should not be

overlooked.

bought

more

Ranger Joe

been

stability and earnings de¬
pendability, certain growth ele¬

by acquisition of other companies,
introducing new items of its
Some

has

nancial

output

and

own.

is

iary, guaranteed by BI.
good

a

to

The

Financial

Taber

with

has

become

Management

Ernest

EPT,

Homer

connected

Investment

Programs, 41 Sutter Street.
He
was
previously associated
with

in

pleased

Chronicle)

FRANCISCO, Cal.—Robin

F.

Bourski, Jr.

to announce

that

J. Bateman

Manager of the Trading Department
has been elected

to

the office of

i,

September of this

Jersey

has

statement, a $4
million item representing a serial

in

one

BI

financial

com¬

New
a

60 Broad

around

is

has

note issue of the Canadian subsid¬

is pretty well integrated,
tically and horizontally.

the

on

Vice-President

and perhaps by 1957 a third
will
be
ready in Northern

year,

Kormendi

band

Another

Philadelphia

BI

BI

which,

cooled, then unitized and pack¬
aged, ready to appear in delicates¬

John Kormendi

Edward S.

ovens,

of

it necessary or de¬
issue
debt
securities

to

shortening
freight cars; are then
pumped up into a tower

nence,

43lA,

found

never

supplies all the mo¬
required and two carton

—arrive in

are

The present

common,

ents—flour, sugar and

We

market

a

(1953 year-end) of
$95.2 million against current lia¬

plant in New Or¬

a

of

yield of 4.6%.

a

The

the

of

chip, of
variety cur¬

traditionally'.been excellent with

flour

80%

income

assured

quotation

operates

which

issue of 248,045
non-callable pre¬

an

$7

really a vast culinary as¬
line. The main ingredi¬

sembly

the 6,385,-

on

Ahead of this

rently commanding
price of around 180.

econ¬

midget pizzas?)

baking business has
a
rather high

traditionally

run

future

power.

cost

shares.

although at the moment there

and away

earning

share

per

together, provide
company's pack¬
aging requirements. So you see,

does not

words

Newton

possible.
an

National

Biscuit

labor

/

;

Discarding whatever doctrinaire New DeaMsh bias may have
gripped him in the past, Berle gives the present-day corporation
credit for achieving high production and minimum
costs, for re¬
fraining from what the traffic will bear in pricing, for instituting
of constructive

Fig

tional

econ¬

on

a

the

Doone?

$2.61

common

the

about 50% of the

childhood
trip
to
the
cookie jar to snap at a
frowned on, between-meai coowie

kind of right by the

interests

Cobleigh

sneaky

young

corporation

U.

pantry
—a

and

plants
Ira

my

of

bulging the big

addition

lasses

Biscuit,

Which

961

by keeping that extra

package.

leans

is

of

Uneeda
On the premise that the
general.public's concept of the mod¬
corporation is as obsolete as the tenets of Adam Smith and

h

u c

poration

timely and important.

are

week

a

owns

stately

a

earnings to sup¬
distribution
for
1953

an

operating 22
bakeries of diverse sizes and out¬
puts throughout the country, BI

with

Company.

and

In

progress

Particularly in the light of the current merger-acceleration and
Attorney General Brownell's trust bending activities is the volume

individuals

omy

per¬

the
characteristics

Maj
ever

see

been

assuming

new

become

were

the

on

The net

this

port

couple of thousand dol¬

lars

always

prestige

Brace—$3)

Harcourt

$2 has been paid

of

mills

the role of the gargantuan

got

of

common.

lies

needed

Jr. (192 pp. New

each

shares

a

per

plant mechanization.
year since 1947, a divi¬

equity

save

row

higher

ferred—an authentic blue

to

some¬

is

expect higher

weigher (sort of a seeing eye dog
for
biscuits) which is supposed

seem

us,

to

There

electronic robot-type counter and

Other

have

reason

dend

happen¬

BI

some

In

landing in the

regularly)

costs.

of

stature and

A. Berle,

opus

must

quite

A.

corporate

Marx, and

ing

tury Capitalist Revolution, by

on

Karl

extra cookie

an

box (which seemed to be

rising

as¬

t h"

w

of

period of

a

what

and

To solve the problem

companies

with

volume The 20th Cen¬

a

York,

ern

briskly

move

efficiency.

ennially prof¬
itable, stead¬
ily gaining in

with

Wilfred

r

to

orous)'statesman comes forth

A.

on

lists

stocks.

ownership from real control.
Now at atomic

places
"g

system's

corporate

our

separation of widespread

into the business

zoom

forward in the markets, and gain
sorted

clearly the vital implications

sud-

seem

rates

partly

share net due to cost stabilization

Company internationally renowned, and its
stock an elite equity.

corporations

Brains-Trust¬

A.

Thirties

Some

with Gardner Means, wrote
epic of American finance, "The Modern Corporat'on and
Property."
Therein was revealed first and still most

Adolf

of the qualities and products that have made

some

common

Destructive Monster?

or

of

resume

National Biscuit

labor

maintaining

price levels in

Enterprise Economist

By a. WILFRED MAY

increased

and pension
payments, and
due to a
policy of

By IRA U. COBLEIGII

•

to

5

Ecific Worth west Company
Q^JnveiimenT ecatdici
EXCHANGE BUILDING

•

SEATTLE

6

The Commercial and Financial Chronicle...

(602)

could

Factors in Credit Policy
Decisions in 1955
Vice-President
Trust

Commodity prices, at least until

York

New

1955 Municipal

recently, have been reassur¬
ingly stable in the face of the
sharp recovery in business activ¬
ity in the latter part of 1954.
However, deterioration in the in¬
ternational
situation
might well

Manager, Municipal

provoke
in

1955

will

be

in

found

business trends and developments

during the year.
vincing evi¬
dence

There

is

con¬

that

rates

available.

However, excess re¬
serves
have declined, and mem¬
ber bank borrowings and money

upward in the
final

ket should not

prod uction

quarter
of 1954.
The

be

described

vigorous

Credit

as

and

be

cannot

pre¬

in advance;
it must de¬
gradually in the light of
evolving business and economic

s

conditions.

have

contributed

in

to
Roy L. Reierson

an

end to

liquidation of business

inventories, an increase in con¬
buying, a conspicuous up¬
surge
in building and construc¬
sumer

policy decisions
must be

economy

careful

on

merous

including

Credit

complex

our

based

upturn,
the

policy

velop

Numerou

the

be kept as easy as

scribed

widespread.
factors

are

it'Was during most of 1954, when
business was either declining or
on a plateau.

to

recovery
date
may

analysis

of

nu¬

trends; they cannot be de¬

termined

by

mathematical

for¬

mulae

or
by the movements
single economic indicator,

any

view

a

higher than they
were
some
months ago.
Appar¬
ently the Federal Reserve, quite
appropriately,
believes
that
as
business expands, the money mar¬

and
output
began to move

matter how important.

supply

of
no

Trends in

commodity

and

credit

of

the

in

ket bear continued

relatively low and
short-term credit remains readily

market rates

to

stock

mar¬

watching with

preventing prices from

rising beyond levels that appear
justified by prospective earnings

The

Business

Environment

outstand¬

billion

had

be

credit

limiting the

for

stock

of bank
trading.

use

market

should the problem of
regulating stock market credit be¬
serious, the use of
margin requirements should be
accompanied
and
supported
by
general credit control.

should

come

more

Should

be

we

fortunate

so

to

as

hazard

of

the

excessive

gathering

momentum

appropriate.
istic

upturn

Perhaps

would

be

real¬

a more

possibility is that expansion
be

may

uneven, that
the economy

of

tors

ahead

too

fast,

tendencies

may

be

may

some

sec¬

may
push
inflationary
grow, that credit
increasingly
for

that

used

nonproductive

general economic upturn is under

available,

it tends to continue without

way

major

until

setbacks

ground

high

new

reached.

is

Furthermore,
the outlook for many of the im¬

est

favorable.

is

spending is likely to
continue
to
rise,
sparked
by
growing personal incomes and a
willingness

to

spend.

Some

inventory accumulation may
be expected in the months ahead,
which
and

will

production.

ing
well

spend¬

equipment

declining

show

orders

new

Business

plant and

on

stopped
the

stimulate

has

and

may very
increase later in

some

Unless

ate

building
strong

and

that

con¬

construction

the

in

upsurge

question

is

so

now

is

show

to

a

strength.
appropri¬
credit policy will require con¬

stant

and

an

meticulous

all salient trends in

scrutiny of

our

economy.

Specific Questions fcr
Several sectors in

to

warrant

the

problem

sharp

in

area

view

of

The

tionably

as

there

is

turn

pand

important

production of

consumer

likely to
throughout
the

maintained

are

Nevertheless,

year.

trend

in

business

the

in

make

term

varied

volatile.

economic

indicators

output,

as

industrial

production,
building
and
con¬
struction, retail sales and others.
The

international

mains
ness

situation

outlook, but it

sonable

stimulate

seems

that

guess

developments
nomic

re¬

bit unknown in the busi¬

a

are

than

a

rea¬

international

more

to

likely to

depress

eco¬

activity.

lar

because

of

high

timism,

should

concern

to

to

justify

the

be

has

change

some

Present

called

in

policy

a

policv.

hardly
be
since
money

can

restrictive,

'♦Summary of

credit

statement

prepared by

some

of

The

scrutiny

of

order

determine

to




re¬

authorities

conditions

rate of increase is

reasonable

cessively

limits

rapid

achieved by a

payments,

standards

Report,

credit

be expected to continue their

31, 1955.

Economic

authorities

added

1954.

or

a

Jan.

an

here

whether

in
the

keeping within
or

whether

growth

is

ex¬

being

reduction in down

extension of matur¬

down-grading of credit
—

to

the

result

which
to

boom is

a

is

it

may
curb

make it
a

boom.

never popi-

prerequisite

a

to

economic growth.

The

developments

that

fear

that

exists

in

restrictive

provoke

may

downturn

in

some

credit
a

of $398 million), $95 mil¬
of Virginia Toll Rev¬
bonds and $68 million Okla¬

activity.

The experience of 1953 and 1954
in the use of credit policy is re¬

assuring
The
ness

major

reasons

downturn

cutback
and

this point.

on

in

for the busi¬
1953

Government

shift

a

in

cumulation

from

were

enue

homa

Turnpike Authority,
were also managed

ac¬

Credit

policy

obviously had no bearing
former,
but
probably
helped bring to an end the rapid
on

the

buildup
vailed

of

in

inventories

the

first

part

co-

Brothers.

Lehman

by

all of
or

that

of

interested

very

Roads.
that

tem
vate

what

in

basis.

the

private
help

the

and

Chi-

City of

denced

salutary is evi¬

modest

At the

same

in the first

part of 1953

investment

affect

spend¬

ing; construction activity set suc¬
cessive

in

records

new

and

1953

1954.

General

in

to

was

illustrated by the shift
policy of credit restraint
of credit

one

This

developments.

a

before

even

are

be changed rapidly
to economic and fi¬

can

response

from

controls

credit

fluid; they

nomic

in May, 1953,

ease

the

activity

peaks

of

eco¬

program

the

that

be

the

economic

policy

lowed
most

the

by
of

also

to

credit

of

during

made

helped

fol¬

ease

economic

policy

spiral

active

authorities

1954

tribution
This

of

con¬

a

stability.

prevent

contraction

growth

under

to

loans

call

roads in the important decade

ahead.

Other

types

of

financing

position

to

ing activities.

stage.

Lehman Brothers

cently

appointed

Inter-American

as

liquidation

ventory

of

that

in¬

might

have been brought on by the call¬

of

bank

loans

At the

same

time, credit
conditions in

maintained

policy

thus

was'

the investment markets that

the

Center

This

Miami.

built and
an
Agency of the
State of Florida, will make possi-.
ble

will

American

countries.

larger

many

new

Authorities,

facilities which

l&ve

since

of

the

in

Parkingvitally needed

are

provide

may

Airport
apoear

may

quantities*

which

garages

area-

Industry and Latin

bonds

Terminal
even

be

exposition

permanent

a

American

for

start

will

make

year

for the

many

and

other

been lacking

World

another

1955

issues..

sewer

Municipal

War

II

banner

business.

Hsvenor-Gayias Opens
Branch in New York

in

com¬

on

result

a

re¬

for

Banker

for

center, which
managed by

was

Cultural

planned

being

lend¬

new

Pressure

prices

modity

in

engage

were

may

to the center of the financial

come

compulsion

instead

but

well

may

be affected by what is done with
our

and

The commercial

banks

no

for the

In fact,

a

liquidation.
were

of

debated, I

need

drainage projects and
The

pres¬

mechanics

be denied.

can

School

achieved.

were

While

plan must still

don't think

inven¬

began laie
time, credit

that

liquidation

and

pace

the

of

character

not

inventory

upon

was

the

by

1953.

did

brake

the

at

need for both

a

getting the United States better

our

this

feasible

capital and government
this important program

in

the

Maryland,

revenue

that there

other thousands of miles

not

are

by pri¬

toll

a

realize

ent time. There is

of

there

that

financed

on

We also

roads.

vania,

know

be

can

capital

market

by the States of Pennsyl¬
Massachusetts, Kansas,

We

8.500 miles of Inter-State Sys¬

are

Large issues were also brought to

conducive
vestment

to

high

a

level

Havenor-Cayias,
the

of

Salt

change,
a

Lake

announce

Inc.,

members

City Stock Ex¬
the opening of

New York office under the

agement .of
Beaver

Irwin

man¬

at

82

Street, New York City.
wire

direct

Glaser

Salt Lake

is

maintained

to

A
the

City office.

were

of

thereby

activity,

in¬

Crowell, Weedon Adds

help¬

(Special

ing to support the trend of busi¬
ness

generally

stage

for

the

and

to set the
upsurge in
capital

LOS

to

The

Westmore

E.

Financial

ANGELES,

Chronicle)

Calif.—James
been

has

ad'ed

to

Weedon

&

expenditures in the latter part of

the

1954.

Co., 650 South Spring Street, mem¬

a

spending

inventory

to liquidation.

be

meas¬

cumulative

economic

on

aspects of the program.

that

avoided.

quar¬

on

the fiscal
It looks
as
though
the
program
is
in
for
a
full
debate
by the Con¬
gress.
Of
course,
the
Invest¬
ment
Banking
Industry
will
attacks

heavy

some

are many

ing

Lessons from the Record

ters

end

that action

sufficient

ures

the

but

sound

Consumer credit is again on the
rise and attained record levels at

ities

on

op¬

straint.

jDr. Reierson for.
the Joint Congressional
the
Commitee

of

credit

The

upturn in business activity
already
been
reflected
in

business

may

degree as
the future.

with

difficult

more

Restraining

whether
speculative wave

(first instalment of a

State

a

for

mar¬

bus'ness

expansionary forces develop

momentum

in

response to a

policy

spend'ng

is

recovery,

inventory accumulation,
or

may

Shift in Credit Policy

of

too

environment in

an

to such

danger

insta¬

that

expansion may be de¬
layed for fear of hampering busi¬

appear relatively low.
inventory policies are

resurgence

is

reduced

problems

pose

ness

broad

of

investment

Another

the ag¬

A

to

credit

easy

help create

for

and

an

period

which

a

important

danger

be stimulated

that

such

contribution

can

seen

lion

restraint

forestall.

future,

near

The good
trol in

the

should

record of credit
1953-54 business

strengthen,

weaken,

the

continue the

pre¬

policy

1953.

stable

as

a

rather

con¬

cycle

use

tool

for

promoting

economic growth.

of

of

the

Crowell,
Los

Angeles

Stock

Exchange.

Joins Samuel Franklin

to

of flexible credit

staff

bers

than

determination

•

Program.

Report.

program

clearly

restrain

inventories in

Connecticut

nancial

underwritten by the Federal Gov¬
ernment is highly desirable.

time

to

policy, wisely used,

One

a

However,

some

like

to the

came

the $100 million State of

were

eco¬

to

Business

ket

State

Other not¬

sold.

was

able issues that

stability and to sound longgrowth.
Unwisely used, it

President to vary the terms under
which home mortgage loans are

will

would

aggressive

gregate still

national

gross

the

million New York

Power issue

un¬

ex¬

to

Toll

in

as

contribute to economic

bility.

to

may

Authority

Thruway

ex-

President might have to say about

up¬

particular

economy

The

is

message

the $335

tory

an

his

Revenue issue and late in the year

the credit authorities

real

a

nomic

can

authority

busi¬

an

man¬

a

the $300 million New

was

State

however,

into

that

or

the

rapidly

so

receni

The immediate grant

additional

one

York

orderly

danger that

develop

of

Credit

records may be expected

new

1955

rising

activity

probably continue for
and

some

durable goods

higher than

appear

be

of

Act of 1954.

first

optimism

to create in¬
stability for the future. Such de¬

of

rates

present,

boom,

sectors

rent

be

real

may

sound

expected to rise steadily through¬
out the year.
For example, cur¬

can

the

and

be

its

sing trend.

r

widespread

such

can

economy

of

confidence

terms

the

period

a

sectors

of

growth;

a

Municipal issues in

of both of these issues.

accumulation

In

ness

recent

building
the liberalized
financing
incorporated in the Housing

sound

Clay

fortunate to

was

ager

Mana¬

We havethe results of the
We have also seen

Highway

already

Morse

sold during
that
Our firm, Lehman Broth¬

period.
ers,

H.

Frank

were

That

in

residential

unques¬

foster

to

economic

the

the largest

endeavor is to minimize economic

in

in

re¬

fluctuations around

reflects

of

Reserve

desires

long-term

months.

strength

Federal

the

increases

of

Senior

a

Eisenhower

President

Two

history

is

pected to send
Congress in the

achieved
1954.

author¬

of the bonds involved in these un¬

rec¬

managed

whether activity in this field may
be excessive.
Assuredly, not all

Much

in

which

Growth

atten¬

by the credit authorities.
Building and construction is a po¬
tential

restrictive

economy

special

in¬

Credit Policy and Economic

doubtless

our

for

needs

velopments

1955

would

policies.

some

development of

tion

spending
The

likely to be

Develop¬

these

as

the

credit

and

substantial way,

not

continue
The

state

local

such

crease

more

inflationary forces take

a

is

appear

unabated.

and

the year
period
in which credit policy criter'a are
self-evident.
Employment is
likely to be high, but less than
full, while commodity prices may
1955

Finally, the decline in
Treasury spending appears to be
tapering off, while the rise in
and

long-term
these

all

is

inter¬

of

considered by the Federal Re¬
serve in
deciding on credit policy.

year.

tinues

both
—

credit

behavior

Certainly

pressures.

are

hold in

Consumer

continued

rates,

short-term

portant factors in the business sit¬
uation

which

under

the

spread.

may

that

or

time give rise to renewed in¬

ments

conditions

purposes,

ord

contemplated.

dertakings.

1955,

look at the

maturities

and

been

has purchased more than 70%

ger,

should

we

markable

a
steady and orderly eco¬
expansion, not accompanied
by
distortions,
imbalances
or
growing inflationary pressures, a
policy
designed
to
reduce
the

and

use

to gauge

issues

Brothers

man

be

seeking

n

of

sales have been effected and
Dealer Group, of which Leh¬

ity

road bonds.
I

astronomical and the

were

never

the

total

achieve

sionary forces in the economy will
persist for some time.
Once
a

activity, the volume
of credit, the terms and

this

nomic

flationary

expan¬

of

However,

any

that

are

al-

all

we

type

new

a

Since that time 13 housing

revenue

bonds and
most

with

1955

ago,

financing in the New Housing
Authority bonds. The amounts to

device for

should

will

years

of

number

Construction

prospects

this

Of

be sold

ing orders tell part of the story.

The

lion.

confronted

were

amount

the international situation may at

and

cipal Bonds. The 1955 total should
exceed $7 bil¬

Several

bring?

roughly $2.5

ventories

new

Muni¬

and

The present sys¬
margin requirements is a
feasible and reasonably effective

speculation

and

State

of

innovations

What

dividends.

ployment, production, business in¬

models.

new

unem¬

issuance

for the Calumet Skyway.

cago

of

duction of

and

the

fifty-five should show
increase in

outstanding

tem

money

employment

another

and

tion, and impetus provided to the
automobile industry by the intro¬

prices,

Nineteen

Prices, trading volume and the
use

still

are

and

sures.

economic downturn.

an

The key to monetary and credit

policy

pansion

Stock Exchange

York

Writer places total issues by states and munici¬
palities at $7 billion, of which $2*/2 billion will
be revenue bonds, largely for toll roads.

impetus to credit ex¬
inflationary
pres¬

real

give

Department
City

Bond

Lehman Brothers, New York

Members New

jeopardize this stability and could

Though holding credit policy cannot be prescribed in advance,
Dr. Reierson points out specific problems for 1955 as: (1)
building and construction boom, (2) inventories, (3) consum¬
er credit
status, (4) commodity prices, and (5) stock market
speculation. Decries fear restrictive credit measures may

Financing Ontlook

By FRANK H. MORSE

very

Economist

and

Company,

repercus¬

sions.

By ROY L. REIERSON*

Bankers

undesirable

have

Thursday, February 3, 1955

LOS ANGELES,

O.
uel

Shackelford is
B.

Franklin

Calif.—Maurice
with Sam¬

now

&

Company,

West Seventh Street.

-

215

Volume 181

Number 5400... The Commercial and Financial Chronicle

-

(603)

tern

The Current Business Outlook

The

By DR. MARCUS NADLER*

What

Professor of Finance, New York Uiniversity
Economic Adviser to The Hanover Bank

Dr. Nadler cites

most

as

about

important fact about 1954 the

non¬

of the widely predicted depression. For the futfure,
predicts that while economy will have its ups and down, no
major readjustment can take place. Looks for 1955 to be a
better year than 1954, based on following factors:
(1) accu¬

(2)

increased home building;

In
spite of the fact that my
predictions from last year more or

that

less

depression, that did not material-

true,

came

I

still

maintain

that the art of forecasting is very

hazardous,
that

and

the

mortality rate
among
forecasters

is

deed

very

high

and

—

this

in-

is

not

surprising

at

?Al*
JVis,dif~
iicult to foreat

cast
time

any

because

really

we

do^\
know
what
tomorNadler

Marcus
..

.

at^reseM^w^p
a

e

1

humble

While

psychology.

,.

tne

gyrations of

You and

when the market

is

know that

well

as

as

on

is

smart

enough

to

predict

what the stock market will do?
/n\

t-\

mco

tu

n-.

.

r(2) During 1953 the credit pol-

1C^j ?u the
a*
a?
of the

Reserve Authorities
management policy

Treasury

did exercise a
influence on p u b lie

powerful

works, home

construction, hence
Now, the

busmess

on

activity.

a

inflation

of

it

will

to-have

its

a

1954

year

number

.

which

.,

tF'rs}'JS
early
the

a

activity,

1954,

part

of

I

It is, therefore, quite evident that
to

tmquished

before a group of dis> businessmen
and
to

tell

that

appear

them

future holds
a

I

know

store

in

what

the

for them

is

by

year

At

can

same

account

them,

see

indulge

the

to

we

as

do

thinking,

reach

,

take

we

facts

if

and

wishful

in

bound

ale

,

if

time,

all

certain

we

not
we
con-

elusions, and the chances of error
are not great.
What I propose to
do therefore, is this: Give you
my
views
in

on

the outlook for business

1955; analyze for

omy

you the forces
operating in the econduring the year and then

later

on

that will be

reach certain definite

to

important
1954

was

development during

the fact that the business

readjustment
acter.

The

was

mild

decline

in

char-

in

production
only about 9% from the peak

a

a-

■

the

that

created

inflation

result

the

as

perhaps

more

important

than all this is the fact that

now

nine years

spite

of

after the war, and in
all the dire predictions

such

an

offer to sell

or a

solicitation of

individual

fluctuated

and

the future,

will

fluctuate

business

a

Continued

offer to buy these

on

page

securities.

offering is made only by the Prospectus.

but the price level as

$

Publiq

provement

Works

Rate

Yield

Debentures

Debentures

Due

Rate

Yield

875,000

1956

2% %

2.50%

$269,000

$1,250,000

1965

3 y4%

3.45%
3.45

Works
Debentures

852,000

1,075,000

1957

2

Vi

2.75

268,000

1,125,000

1966

852,000

1,250,000

1958

2%

3.00

269,000

950,000

1967

decline

commodity prices is not in the

725,000

1959

2%-

3.125

269,000

1,850,000

1968

423,000

33/g
3%
3Vz

1,725,000

31/2

3.55

750,000

3

269,000

1969

1960

269,000

1,525,000

1970

3.55

269,000

1,450,000

1971

269,000

1,225,000

1972

31/2
31/2
3i/2

269,000

4,200,000

1973

3.65

3,239,000

1974

3%
3%

decline

not

jn

1, as shown below

Due

provement

•

Local Im¬

Public

Debentures

$853,000

whole in the United States will

a

Due October

(Accrued interest to be added)

in

and

a

major

mnkim*

423,000

Third, competition during the
year
was
^een and in all
probability' will; continue.
The'

iast

separation of the men from the
boys which set in during the middie of 1953 continued throughout

*

3.25

423,000

750,000

1961

3

3.35

423,000

950,000,

1962

3V8

3.375

423,000

1,525,000

1963

3%

3.40

269,000

1,200,000

1964

3*/4

3.40

—

3.50
3.50

3.60
3.60

3.65

1954
.

_

,.■

T

■■
.

w we
„af° was ^dress\nf* 4foup of+ b1^mes^n?en and
1
them that although business
W1?, .imPrpve and although in my
?f,ln1^^955 J?P
f ar
?.n *954, yet, I stated, the sepa.

.

The Prospectus may
from

be obtained in

continue, and one

me

and

he

said,

man

any

State in which this announcement is circulated
as may lawfully

only such of the undersigned and other dealers
offer these securities in such State.

•

Shields & Company

Halsey, Stuart & Co. Inc.

turned

"Professor,

what is £he difference between a
man a"d a boy?
And ™henf>meb,ody addresses me as pro£e?sor 1 know he 1S no tnend of

Salomon Bros. & Hutzler

Sayard & Hart
Coffin & Burr

Eastman, Dillon & Co.

Hornblower & Weeks

Incorporated

Bell, Gouinlock & Company

Kidder, Peabody & Co.

Incorporated

mine.
1 turned to him and said, "You
don't know the difference be-

through it. "and I looked down
and I sald> "I think I see mud on
s shoes,
Those who have mud on their

somebody
-

will

fall

before-the

will continue unabated.




if you should

—

in the year a decline

AMOUNTS, MATURITIES, RATES AND YIELDS

commodities have

Forum, conducted by Robert Reis & Co.,
New York City, Jan. ii, 1955.

Tra?kCri*t.uf
a,«talD .by,Pr- ANadIe^
Arthur M. Reis 17th Annual

an

on

marily by

important
role in the recovery which set
in in the last quarter of 1954 will
continue to operate during the
next few months at a high level.
an

January 1, 1955

Local Im¬

G6J16F, dfld

by

Burns Bros. & Denton, Inc.

The pat-

Stroud & Company
Incorporated

Tucker, Anthony & Co.

R. A. Daly Co.
Limited

Gairdner & Company Inc.

Hirsch & Co.

New York Hanseatic Corporation

H. Hentz & Co.

McDonald & Company

the

the m6rg0r IT10V6m6nt

Mills, Spence & Co. Inc.

Swiss American Corporation

Courts & Co.

January 28, 1955.

of

activity caused pri¬
decline in activity of
the automobile industry there is
no reason to get excited.
It is one
of the natural rhythms of busi-

The automobile industry

played

industries

later

see

in

(4)

which

the

wayside.
Competition is keen, will become

t

Dated

war, and
its aftermath, is permanent in character.
To be sure,

shoes
u

economy

whole.

1955 UNITED STATES CURRENCY ISSUE DEBENTURES

which

of

in 1953 to the lowest

But

the

on

as a

+

tween a man and a boy? Let me
point in 1954. explain it to you." I said, "Did
Disposable income of the people you ever observe a man and a
remained very high. Consumption boy come to a mud puddle?
The
expenditures were only about roan invariably will walk around
2V2% smaller than during 1953.
it, the boy invariably will walk

was

half

FOR LOCAL IMPROVEMENTS AND FOR PUBLIC WORKS

whole remained stable which

to

The Year Past

second

tending higher and higher?
«

will

Before turning to the future, let
us take a
look at the past year
for a moment.
To me the most

the

in

(Canada)

ration of the men from the boys

rnnrliisions:

off

fall

other

effect

country

-

,.

the

into

to

the year.
tomobile

The City of Montreal

of readjustment,
anything else to

their

Whether a strike of major pro¬
portion will develop or not I
don't know, but if the output of
automobiles is too large in the
first half of the year, it is bound

during

$35,000,000

in-

little bit hazardous.
....

difficulties develop

dealers may be amply stocked.

favorable

.

decline ill business

wage

-public works will
generate
purchasing power and have a

f.™
was

can
one
except
happen in a period when business

is

if labor

be¬

1954

accompanied

a

A
was

us

»

grant

therefore, it would not be
surprising if they were to produce
as many cars as possible so that

Naturally since the au¬
industry has a broad
impact on steel, on rubber, on
fiber, on glass and a number of

of the

The

industry is ready to
a
guaranteed annual

now

and,

for

market

contracts

the

bile

hospitals and play¬
The tremendous volume

creased unemployment, wages actually went up. If wages increased
jn

market.
money

labor

guaranteed annual wage, I doubt
very much whether the automo¬

economy

of

,

taught

at the end of April and
unions are asking for a

that

the

important in the fu.

,

marked by

.

also

of lessons

lieve will be

that

.

in(-.

industry

expire

the

be
very
great}.
The
will be spfent because there

grounds.

.

.

This announcement is not

future.

V,..
"
The

,

The automobile

will generate
and
have
a

for, schools,

Inventory

be consuming.
....

sec¬

during the

that

a
great pentup demand for
roads, for highways and byways,

liquidation has come to an end

great deal of confidence for tne
' 'v..

a

was

it, too, has an important bearing on business
activity,

,.

evident.

create

is

f

borrowing from the

knows

the

in the

con¬

industry

kinds of

all

on

in

automobile

Why the automobile industry is
operating in this fashion is quite

will

1955

tories. Therefore, during this year
we will be producing more than
we

in

public works,
probability the volume

offered

money

moderate accumulation of inven-

to a
businessmen to know

if

the

be

ond half of the year
first half of the year.

tax-exempt securities that will

be

^reatly mistaken, there will be a

means

normal and

of

than we are
Pr0(hjcing; In 1955, unless I am

not" I thought over the word

for

power

spent

in all

and

(1) The greater part of 1954 was
by the liquidation of inye^ories. When inventories aie
being reduced it means that we

a

that

itself will

effect

offered

alrdady

1954.

usl°ns'

assume

great portion of that

r

and

ups

be

will

country.

were

These are the reasons for the

element of

We all know that the internafional political situation is not

better than

tinues

(3) Public works are at a very
high level. During 1954 nearly $7
billion
of tax-exempt, securities

of

take

not

Second, in spite of the readjustm?nt> commodity prices on the

(3)

of the

the

equity market and
the credit policy of the Reserve
Authorities.
Nevertheless,
1955
will be a good year and should
be

us

demand

favorable

level

movement

undergoing changes. Who
really can predict how far they
will go?
And this adds another

uncertainty.

reaches

it

may

in

1,200,000 homes will be

purchasing

cor""

1954.

than

better

not

1955

great

present trend of production

De¬

that

estate people
optimistic than

material and labor,

diet; notably, labor conditions, the

by

that surely the economy will have
its ups and downs; but a major
depression is not in the making
and, therefore, you can plan with

policies of the Reserve Authorities
are

be

or

a

the

real

more

Let'

ing cars at the annual rate of
nearly eight inillion cars. It is,
therefore, quite evident that if the

thou¬

started. It

homes

started, that in

boom, fpl-

peak

prices, is not in the making, cannot take place and when
I say

a

takes

goes down.

will

of

The

even

1955 only

better than

was

hcilf

hundred

Commerce

1,300,000

that.

companied by drastic reduction in are consuming more

ultimate

opposite

place when the market
Who

Whether

major depression in the
United
States
accompanied
by
large-scale unemployment, ac-

downs,

manage6

the

on

The

consumer.

it exercises

up

favorable influence

ment

tainly

free economy like ours

a

bound

first

a|re

that every major

period

opinion

,

'

i

United
serious

place in the future.
js

which

The

of

started.

"the

year

which in turn is followed by a
period of depression and deflation.
This has not taken place
after World War II, and in my

It is "will

equity market naturally have
important bearing on business

an

a

1

us

a

may,

as

a

1955,

of 1953 is not as yet
certain, and will depend upon
conditions which nobody can pre-

followed

by

predict.

(1) At present
t

i

w

is

a

it

as

two

by

partment

yet quite clear.

as

million

sand homes have been
has been estimated

labor

1955 will go down in history

did not repeat itself,

History tells

lowed

the

for

One

important in¬

year

to forecast "will" a great deal.
reaHv^obodv
11 ls' ^erefore, comforting

th

uncertainties which
can

w

bring.

...

.

o

r

headed

ize, history
war

that

made

was

(2) Home building activity was
a very
high level during 1954.

serious

be that

However,

But here I believe a word of cau¬
tion is of importance. The auto¬
mobile industry todays is produc¬

on

What

my

of

going to cause us any
during the present year.

trouble

1955

for

outlook?

some

dustries, is not

(3)

] 954
were

In

1955?

difficulties in

production, at least during the first half.
States

Outlook

about the

possibility

the

tremendous volume of public works, and (4) continued high
level of automobile

and is not

in my opinion,
throughout 1955,

1954,

opinion the
general outlook for 1955 is favor¬
able.
The
broad trends
during
the first half of the year are quite
clear.
The trend during the sec¬
ond half of the year, because of

appearance

mulation of inventories;

in

set

will continue

7

The Milwaukee Company
Shearson, Hammill & Co.
JonNSTON, Lemon & Co.
F. S. SMITnERS & Co.

31

8

The Commercial and Financial Chronicle...
Thursday, February 3,

(604)

Pinellas Industries, Inc.—Report—Eisele &
&

1955

King, Libaire, Stout

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

Public Service

Dealer-Broker Investment

&

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

Reo

Holding Company—Analysis in current issue of "Glean¬
ings"—Francis I. du Pont & Co., 1 Wall Street, New York 5,
N. Y. Also in the same issue are three sample Portfolios.

Recommendations & Literature
It

understood

is

that

the

send interested parties

to

mentioned

firms

will

be

Singer Manufacturing Co.—Analysis—Bruns, Nordeman & Co.,
52 Wall Street, New York 5, N. Y.

pleased

Sioux Oil

the following, literature:

Co.

—

Analysis

Brereton, Rice & Co., Inc., First

—

Nationll Bank Building, Denver 2, Colo.

Textiles, Inc.—Memorandum—Courts & Co., 11 Marietta Street,
N. W., Atlanta 3, Ga.

Banks

and
Trust
Company
of
Northern
N^w Jersey —
Comparative figures as of December 31, 1954—Parker and
Weissenborn, Inc., 24 Commerce Street, Newark 2, N. J.

Vanadium

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

West

Stock

Price

Changes in

1954

Analysis

—

James

—

Richardson & Sons, 173 Portage Ave., East, Winnipeg, Canada
and

Royal Bank Building, Toronto, Canada.

Dividends for More Than
■tr.

the

American

—American

Stock

Stock

a

Exchange,

Trinity

Electric

Place,

New

Co.—Memorandum—W.

E.

Hutton

&

Co.,

particular

reference

tric

Power

New

Co.,

50

Broadway,

4, N. Y.
•

Through

the

Japanese

Stock

tures
m V

NSTA

NOIfiS
^

in

Ltd.,

Japan—Circular—Yamaichi

4,

market's reaction, six

City Bank Stocks—Annual comparison and analysis
—Laird, Bissell & Meeds. 120 Broadway, New York 5, N. Y.

New York

City Bank Stocks—Comparative figures at Dec. 31,
Boston Corporation, 100
Broadway, New York

1954—First

5, N. Y.

used in the National

and

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

market

National

Quotation

Bureau,

Inc.,

Front

46

Street,

New

4, N. Y.

Philadelphia Bank Stocks—Comparison of 11 largest Philadel¬
phia banks—Stroud & Company, 123 South Broad Street,

Philadelphia 9, Pa.
Split Up Candidates-—List of 130 stocks which may be split-up
candidates—Walston & Co., 120 Broadway, New York
5, N. Y.
Stock Market and Industry Review—Brochure—Sutro Bros.

Bond

registration

Traders Club

in

many

years

of

at

Co.,

1033

Thirtieth

Street,

Astoria, April 29.

sfi

(Special

Business

Development Se¬
W., Washington 7,

SAN
dell

221

30 Broad

& Co., 120 Broadway,

5, N. Y.

Cinerama Productions

Corp.—Analysis—John R.

Bookshelf

Boland & Co.,

Street/ New York 4, N. Y.

Resistor

Corporation—Bulletin—Strauss, Ginberg

Inc., 115 Broadway, New York 6, N. Y.
bulletin on Elk Horn Coal
Corporation.
General Gas

Corporation—Report—Cohu

New York 5, N. Y.v
Gulf

Coast

South La

Co.,

Also available is

a

& Co., 1 Wall Street,

Leaseholds, Inc.—Analysis—Leason & Co., Inc., 39
Salle Street, Chicago
3, 111.

Laclede Gas
&

&

Company—Analytical Brochure—Kidder, Peabody

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

Industries, Inc.—Analysis—Clark, Landstreet & Kirkpatrick, Inc., 315 Fourth Avenue,
North, Nashville 3, Tenn.
Hampshire

Fire

Insurance

Company—Report—Loewi

&

Company—Study—Bond, Richman

&

Co., 225 East Mason Street, Milwaukee
2, Wis.
Northeastern

Insurance

Col, 37 Wall Street, New York 5, N. Y.
Peerless
South

Cement
La

Salle

&

Tracy,

Atomic

Energy

describing
the

sufficient

at

buyers

smaller

for

account

to

50%

than

less

the

being

time

of

Interest

on

of

the

to

the

sales.

in first-day

A

with

has

Hooker

become
&

New

York

and

San

&

son

Exchanges.

How?

—

in

simple

Booklet

Fay,

of New York, Inc., 4 Irv¬
Place, New York 3, N. Y.

SAN

Fran¬

basis,

experts.

the

Settlement

Traction, Light
and Power Controversy to the
Economy of Spain—Sullivan &

Cromwell, 48 Wall Street, New
5, N. Y. (paper).

Vermiculite

Concrete

Panel

or

have made necessary some

First

California

to

The

Financial

FRANCISCO,
B.

Seymour

Calif.
is

With Paul C.
(Special

to

The

the

But
—

with

major aggregations of invest¬
ment capital now will be disposed
to remain
aloof for a spell and
for the Treasury list to con¬

wait

Chronicle)

Once

JOSE, Calif.—Richard C.
Tripp is with Paul C. Rudolph &

Company,
Building.

Bank

of

America

Spandrel Walls—Folder of Data

A. C.
(Special

(paper).

Allyn Co. Adds

to

The

OMAHA,

Financial

&

more

—

Telegraph

Joins McAndrews Staff

120

Co.

focus of
circles.

is the

Reports have the big company
contemplating the raising of new
funds. And despite the failure of
reports to materialize many
past, talk of a split-up

such

times in the

Chronicle)

William

Conjecture

American Telephone

attention in capital market

is abroad

Neb.

position.

new

Center of

SAN

is that

now

consensus

the

Rudolph

Financial

recast¬

ing of ideas on bond prices and
yields. It is considered certain that
a 3.15% yield would have brought
out big buyers.

Chronicle)

Jr.

issue

long

solidate its

—Vermiculite Institute, 208 So.
La
Salle
Street, Chicago, 111.

naturally

and

of

Barcelona

the gov¬

set for

terms

the

But

Co.

Merrill Lynch, Pierce, Fenner &
Beane, 301 Montgomery Street.

the

the

in

formerly with Jamie-

Harry

of

if offered on a 3.125%
opinion of market

window,"

ernment's

ing
(paper).

Importance

prior

was

(Special

of nuclear fission
Consolidated
Edison
Com¬
process

ago,

bonds, the above-mentioned issue
would
have
gone
"out-the-

Mr. Hut¬

With Merrill Lynch

language

fortnight

Treasury's posting of its long-term

pany

Street, Chicago 3, 111.

again.

S.

could be, as in
reflection of the pre¬
Company, Inc., First National vailing rash of splits being an¬
nounced by corporations and in
Bank Building. He was
previously
good part, it could be a case of the
with John Douglas &
Company, wish
being father to the thought.

Latta, Jr. is

with A. C. Allyn

now

the

reports

past,

a

&

(Special

America—Analysis—Thomson

.11 Wall Street, New York 5, N. Y.
on
Safeway Stores.

in

that

buyers

remain

to
the

for

Latter

Corp.—Memorandum—Rogers

Petroleum Corp. of

Hutchinson

Stock

chinson

York

•

Litton

New

disposed

Fay

Chronicle)

Company.

—

Eric

larger

were

-

—

Corporation—Bulletin—Reynolds

Financial

Montgomery Street, members

cisco

Ma^s.

York

The

FRANCISCO, Cal.—Wen¬

A.

of the

Memorandum
Chace, Whiteside, West &
Winslow, Inc., 24 Federal Street, Boston 10,
New

to

associated

Man's

*

Fine Spinning Associates,
Inc.—Analysis—H. Hentz
Co., 60 Beaver Street, New York 4, N. Y.
—

institutional

most

total

develops

Recasting of Ideas

Berkshire

Bird & Son, Inc.

it

flux,

of

something

hold its

With Hooker &

N.

state

was

will

101.61,

With the market pretty much
a

&

D. C.
*

York

bids,

ran out from the
by the winner, to
3.15% indicated for the lowest bid.

least.

New

six

the

of

fixed

3.125%

OF NEW YORK
of

only

offering terms

sidelines

Security Traders Association

of

only $5.90 a bond away from
the winning tender. Ideas on re-

ual game.

The

differential

$1,000 bond.

a

Lowest

Byllesby
Sjostrom,
Kidder, Peabody & Co.
High gross'was won by Richard Wierenga, Smith,
Barney &
Co., and High Net by Martin J. Long, First Cleveland Corporation.
William Brown, Baker, Simonds &
Co., Detroit, won high individ¬

annual dinner at the Waldorf

a

or

on

was

were Elmer W.
Erzberger, Smith, BurWilliam J. McGregor, Glore, Forgan & Co.; Richard
Smith, Barney &j Co.; Frederick J. Cook, H. M.
& Company, Incorporated, and Robert A.

Atomic Energy Is and How It Is
Applied—4-color sheet
with listing of 100 atomic stocks—Atomic

Celotex

101.955

$2.45

Co.;
Wierenga,

SECURITY TRADERS ASSOCIATION

102.20

develops that the runners-up of¬
to
buy the debentures at

2716. The team thus retains
possession of the First of Michigan
Corporation Bowling Cup for another year.
&

group

of

fered

capacity crowd in attendance despite bad weather.
During the afternoon the annual Bowling Tournament was
held with the Chicago "A" team the winner with a total score
of

ris

price

a

pretty much along similar lines, it

Chicago reports the largest guest
their annual dinner Jan. 24, with

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

&

paid the
and to
show that the others were figuring

BOND TRADERS CLUB OF CHICAGO

What

curities

successful

The

issuer

Members of the team

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

syndicates

sought the issue, all fixing a 314%

a

New York

Tuesday,
test of the

on

immediate

interest rate.

The

Sec-

City

of 40-year deben¬

bids

for

an

Potomac

&

Baltimore

of

Co.

up

staging

-

Market—

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

York

Chesapeake

put $25,000,000

Co., Ltd.—Nomura Securities Co., Ltd., 61 Broad¬
6, N. Y. and 1-1 Chome, Nihonbashi-Tori,

Investment Opportunities

yield

bonds were marketed.

When

York

Investment

rities

when

York

"Monthly Stock Digest"
Chugoku Electric Power Co.,

During December 1954 — Nikko Securities Co.,
1-chome, Marunouchi, Chiyoda-ku, Tokyo, Japan.

Panama Canal 50-

the

1911
year

.

Chuo-ku, Tokyo, Japan.
Foreign

cor¬

jected for government paper since

Corporation—Bulletin—Dreyfus and

V,

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

issue

new

York

current

to

and

porate markets had bargained for.
It is
the
longest maturity pro¬

Telephone

Electric Utilities in Japan—In

as

some

seasoned

the

6, N. Y.

with

bonds

of

Wheeling Steel—Bulletin—Peter P. McDermott & Co., 44 Wall
Street, New York 5, N. Y.

on

industrial classifications

by

86

stocks listed

offering of 40a part of its
$15,000,000,000
of maturing debt
on
March 15,
apparently was a bit more than
Treasury's

3%

roll-over

Street, New York 5, N. Y.

New York

Decade—Common

Exchange,

Penn

14 Wall

36, N. Y.
Canadian

The

year

of

America—Analysis—American Se¬
curities Corporation, 25 Broad Street, New York 4, N. Y.

Canadian
ties

Corporation

&

McKinnon,

Also available is

a

report

SAN

to

The

Financial

Chronicle)

FRANCISCO, Cal.—Fred¬

erick M. Lorish is with McAndrew
&

Co., Incorporated, Russ Bldg.

Inc.

T.

A.

&

has

T.

been

able

to

keep the price of its stock pretty
in hand by occasional offer¬

well

Dependable Markets in

Uotiwra Securities

DEPENDABLE MARKETS

@o., 2td.

Over-the-Counter

Member

N.AJSJ)

may

of

Japanese Stocks and Bonds

Troster, Singfr & Co.
2400

74

N.

Y. Security Dealers

Association

Trinity Place, New York 6, N. Y.




is

that

such

element,

an

offering

be in the making as a means

taking advantage of the strong

Material and Consultation
on

Members:

"rights." Among

equity market.

Securities

2-

on

conservative

more

feeling

Broker and Dealer

HA

ings to holders
the

without
NY

1-

376

61

obligation

With Hornblower & Weeks
j

•

I

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

BOwling Green 9-0187
Head Office Tokyo

(Special

Anderson

DEMPSEY-TEGELER & CO.

to

The

CHICAGO,

with
Smith

has

Financial

111.

—

become

Chronicle)

Daniel

Hornblower & Weeks,
La

Salle

Street.

O.

connected

134

Number 5400... The Commercial and Financial Chronicle

Volume 181

A

Busy Period of
Home Construction Ahead

(605)

several of these offices which in-

which

dicated

lower maintenance and better liv-

appreciable

an

vacancies.

ing

asked

We

these

offices

people moving from rental projwere
going and they indicated that most of them were
moving

Commissioner, Federal Housing Administration

single

to

family

insured under FHA

Commissioner Mason gives details of present FHA
and notes loan applications are increasing under

activities,
the new
Housing Act and the Voluntary Mortgage Credit Program.
this

of confidence

indication

an

the

in

rental's *T

immediate

that
u

role

have

to

About
starts

directly
the

speed

and

reflects

ter

the

1955 rec-

a

mighty big

of

offices.

FHA

total

try.
In the wake

for FHA

of

crease
over

happen¬
in your

ing
industry since
Norman P. Ma&on

your last con¬

vention, I fear
there are just two speeds in the
home
building
industry's joint

Trtt^nwTl1iinnHA:
and slow motion.

the

than

more

previous

price

tag.

No matter what the size of this
price tag, it will be paid by American home buyers this year. Be-

applica-

financingling

one-third

year.

be

low

-

s*jii

we>re aiWavs elad to cred-

the job.

You home builders, large

„

ation tells

you

...

that

a more

desir-

able home is the product you must
Put on the market in 1955.

■_ Recently we in FHA have been
doirig a good deal of talking about
being sparked by this record. Your record speaks for quality. This in itself isn't startthe new and more liberal FHA itself. You are
demonstrating in ling, nor is it so new. We have
programs.
A small minority, a dramatic style that free enter- always been advocates of quality,
very small minority, as a result
prise, in spite of its critics, can in material and in construction.
„

time

of

able

are

to

lake

advantage

an,j small, from all over America,
working together, have created

the business

.their 6wn actions, have had meet the challenge
their

participation

FHA

in

pro-

grams slowed down.

The great majority of the sevthousand Section 608 spon-

eral

sors

not

are

involved

regularities.
rank

I

file

and

in

believe

—

j

the

ri-

any

that

the

conscientious

of the times.

But

now

we

intend

to

go

fur-

ther. In considering a house in
the
the light, of its future maintenance
you face the immediate future. I costs, its longevity, livability, and
believe the rosy predictions of a its future value in terms of amenbig year ahead will be borne out, ities, we are enlarging the definiand that the trend clearly dem- tion of quality.
onstrated during the last five recIndustry advisory committees
piease(j

y0q
to
confidence with which

ag

sense

more

who have previously
priced out of the market.
jn

|"

made

pie

making revisions to

a
as

couple of matters in which

we

partners should be able to help

each other.

tage

the

builder

is

developing land.
big builder, with
production,
can
undertake

against

up

The

m

his^quantity
the

cost of

land improvements-costs

often prohibitive to a small scale

developer. What can be done to
help the little fellow? What can,
or should, FHA
do to help him?
I'd very much like to have the
benefit of your advice.

of

as

really

a

with

economy

XrTnd"

I have good news

for you.

permission

min-

hope

to

use

an

adequate

^

field

^ire

am

sure

tary program is to develop as it

should, FHA must be

help
will

is

that its

sure

available anywhere.

welcome

thi<? is not

so

from

word

in

vour

We
if

you

to

ask

turn

for

mated at
*An
before

On

Association

by

I believe

of

Home

of

the

Mason

National

Builders, Chicago,

111., Jan. 19, 1955.




..

varying

Wh°'e 11V6S

house.

°n?

br,a.ftjar.S's
vigor. Yours

a

is

3I-e
"J638?1*38 that we, as young
in

partner

housing,

take to
help you home builders serve the
can

American public better.
A

,

P

'

P?

?n

-..^A

.

^ nill™

t *r

of

an

organization of

and ideas, yet with
vision

to

sizo

no

the

"eTndwifh The spirt? totak?
up

+

men

maturity

a

I

■
challenge.

congratulate

you

for

the

in¬

terest you have already shown in
*
—
.

improving housing standards for

Rf

.

Plan 10 «° 10 advance the American people. 1 congratu-

.

the i°mt £3U8e of quality and
What
the workable
building costs

Ta ftv?

late you for assembling here from
every

state,

towns all

from

over

the

cities

America.

improving come to iearn how to do

a

Sometimes when

a

builder finds

and

You have

a

better

job for yourselves and a better
for y°ur neighbors back home.

of saving money in the
FHA stands ready today to asconstruction of a house, we'd like sist you in forward looking plans
to see him take that savings and to make housing available to
pse it to add quality elsewhere Americans of every income level.
id.the house. That's the sort of
What a wonderful thing it is
a maans

#

„

>

thing that will give us "more that American

businessmen will

Twrtlv wiwtirt lather
t°get»?er likeand
this, banding
sharing
their
knowledge
a judder the other day who said
their strength in cooperative en¬
,jrjveu-;iy an(,
appijed it to installing a better kitchen.

deavor.
And

I

believe this

search for "more

bouse for the money" highlights
one of your real problems: the

to
_

in

work

putting that knowledge
you
^

will

earn

an

^

even

greater award—the certain knowledge that, through your work, you

housing industry is not conducting have helped to create a healthier,
sufficient technical research. What happier, sounder and better
a wonderful thing it would be if America.
the home builders had their own
big technological research proThree Join Reynolds
gram working to uncover and de(Special to The Financial Chronicle)
velop new ways to put a better

together at less cost.

SAN

FRANCISCO,

Roland

A.

Calif.

This announcement is

John

Mr. Harrison was formerly with
Davidson & Co.

neither an offer to sell nor a solicitation of an
The

EEEEE

offer to buy these securitiest

offer is made only by the Prospectus,

300,000

Shares

Allied Stores

continental United States

we

survey

of

par

value)

take

vacancies in
FHA-insured projects. To find out
a

Corporation

Common Stock
(without

rental

"quickie" survey of the opinions
of our insurance office directors,
Let me stress that these are opinnot fact, but cross checks

Price

$54-75

per

Share

a

4
he obtained in any State only from such of the several Under*
including the undersigned, as may lawfully offer the securities in such State.

Copies of the Prospectus may
writers,

LEHMAN

substantial.
It is,

fact

I think, indicative of the

that

minor one,

of 10% or

any

change

is

still

a

in that vacancy ratios
less were estimated by

February 3, 1955.

—

G.
Lazaneo
and
Hector
Harrison
have become asociated with Reynolds & Co., 425 Montgomery St.
Biancalana,

going to play an even more im-

bright
the
the wide

Season-

J

single family living is

the

Commissioner

Convention

well tailored to fit the varvine

so

th% ^„ Jf ! -V ?

during

1,215,000 units.

address
the

to

now

business

industry—I

keep

Less than half our directors beLoved that there have been some
course
of this year —
increases in vacancies in at least
open housing market.
Last year one °f ^HA's four rental prowas
the second greatest year in grams.
Only one out of six dihistory in housing starts.
The rectors, however, expressed the
number has been officially esti- opinion that their increase was
Let's

outlook

of

your

indicate their reasonableness.

area

job

fust t MnglrKM

Tre

arfe^Ioring' th^ possMUy "of

pr0Cessing
help in geting the qualified personnel that
we need and let's do it quickly.
I

current.

ter of vacancies currently, we did

I

more

the

will accept it.

enough personnel in our

offices

that if this volun-

las.

of

is

you

1

amount 0f extra funds so we can

what was happening in the mat-

areas

re-

The

congress is considering giving us

by bringing
liberal
home financing to a market previously unblessed by this stimuadvantages

in

you

support of the work of the Euild-

balancing

in

aualitv

we

the bread and butter of the home

consideration, and this portant part in our way of life
one of importance to small builders
^rom now on. FHA's interest in
and large builders alike, is the the trends and Habits of American
Voluntary Home Mortgage Credit borne seekers led us very recently
Program. It it designed to put to check up on our regular survey
more mortgage money to work in
vacancies in rental housing
communities
in
oultlying areas projects,
and for minority housing. To the
A Survey of Rental Vacancies
degree it's successful, it should
Each March 31 for most of the
certainly help the builders who
the

for

back of you in your

ing Research Advisory Board Re-

busy

Another

operate in these

doing

am

building industry.

One is the disadvan-

small

beginning

I

been

have been called in to assist in
What a wonderful idea it would
the study of how our cost esti- be for each of you to put $1 per
ing on procedures to separate the period of home construction.
mates might reflect higher stand- house into a fund to support a
wneat from the chaff. These proThe applications that came turn- ards. We are studying procedures fine program like this. You home
cedures will be announced in the
bling jnt0 our field offices in such by which architectural and struc- builders could have a million dolnext few days.
record-breaking
numbers
were tural qualities, design and location lars a year working for you to
Let's turn our attention now to
largely for single family houses,
the

is

search.

peo-

kyilder8
of this country will
be ord-beaking months of 1954 marks
glad to know that we
workare

I applaud the good work Len

Haeger

search

our

many

to come,
your market too.
years

property requirements, the
Through your vision you can
nelBer. '° .relax "or create homes to keep pace with
The intent is simply the times. You can offer homes

we're

Well, we all like to crow and in not raising an issue which conWashington we've been crowing flicts in the least with your inthat the Housing Act of 1954 is terest.
With competition keener
largely responsible for the rec- and the customers more selective,
a business-like glance at the situords we're setting.

it openly the boys who are doing

Not all builders at the^ present

of quality housing on which main-

tenance costs will

be

,

,

what has

to

and

more

ad-

that amount

you

times over in the

We want to-

materials

available to

of

and methods which

means

save

and broaden

s

benefits

techniques.

new

devise
can

~

in helping the fellow who is footthe bill to get as much as he
of one-to-four family
dwellings can for his money.
alone covered 338,000 units, an inin this aim of ours-promotion

tions last year

day's

s

current

The

the

want

life,

omitting finished flooring when

Whatever
total its
it's going
eoine to
wnatever the
tne loiai,
to
a

longer

given recognition

Dili to seek the ideal

Act of

activity, cause, by nature, FHA is their
however, is the number of the representative in this partnership,
new applications received in our. our
interest quite naturally lies

home building
in this coun¬

been

of last year s
financed under FHA

The figure which bet-

programs.

upon

quality

276,000

were

We

vanced

Promotion of Quality Housing

be

FHA Activities

say

years,

•

being accelerated by

of the Housing

weu in excess 011 si ye

of

cop.
But what I

can best be

to

*n the FHA appraisal.

but

manvvears

rSinct

.

.

traffic

of

u

•

is

terms

contribute

Zfslto TeLmZI
rf trend hS been

°or

Everything points to

.

.

bears

ui

probably
the

fcs

sort

here

.

the

this

Eoineon

today packing no pis- ally adjusted,
the
number
of
tol
wearing no policeman's housing starts during the fourth
badge
and girded with no quarter of 1954 exceeded an anquestionnaires! I am not here in nual rate of 1,360,000.
.

guaranteed

VA, with minor percentages
to conventionally financed homes

future, and predicts the expected big year in home building
Reveals FHA is endeavoring to promote quality
housing construction, and praises work of Building Research
Advisory Board.
am

or

homes

by

will result

I

where

ects

By NORMAN P. MASON*

Sees in

increase in

9

BROTHERS

10

The Commercial and Financial Chronicle...

(606)

lion

A Businessman's View oi 1955

Those

the

It

clear that for the long

seems

pull the general economic outlook
for

good

moderately

year

it's

velopments that

not

so

Anyone

easy.

who

tell

can

in

the

to¬

count

and

today's

state.

These

from
no

life, affecting particularly

us

ban
a

which

areas,

few

might call
living.

we

kind of revolution in

then

talk

as we see

the

about

more

them, and
long-

outlook.

term

The

best

heard

I have

phrase

of competitive prosperity
—in other words, a good year for
year

recognize the need to

who

It

seems

nudge out '54 from its posi¬
tion as our second best year and
turn

may

peacetime
The

be

to

out

No.

our

1

the

columns,

to

as

you

1955.

I suppose everyone

of

—It

—We

have

all

been

wages

enough

about

5%.
ex¬

will be at

and
a

construction

road

high level.

—There will be

record

a

schoolrooms,
and

num¬

water
facilities

new

sewerage

kind

led
the

future

of

products and

higher

use

This

trend

and

other

have

factors

leading economists to
opinion that 1955 will be a

many

revolution

a

has

processes

of

concepts

—new

in

been

automatic

controls and mechanized processes.

electrical, chemical
discoveries, and

in

one

her home

families

in

year

our

problems

be created by our

may

accelerating
population
in the food business
simply accept the fact that there
are going to be many new mouths
feed.

Paul Mazur to
Address New School
Paul Mazur,

and

Brothers

partner in Lehman
director of leading
corporations,
will open a
series of five
round

table

luncheon talks
business

salary in¬
hinged to pro¬

main

ductivity increases, if those wage

of t h

salary gains

and

are

to

be

which

real

pyyk

in terms of standard of living.

is

reflected

in

new

the

structed in 1954.
and

most

the

field

in

a

fact

One of

conservative
of

home

that

were

1.2

con¬

our

best

expert

in

1955, possibly 1.25 million.

He

also predicts in excess of 1.1 mil¬

P»ul

living

icy, who has

of

Business

New

speak

Social

Research.

"Distribution"

on

round table

on

Mr.
will

the

at

Thursday, Feb. 10,

meeting at the School from 12 to
2 p.m.

to the mainland and oust the

The

A

years.

been unleashed

army

under 30

of

been

during the Korean War, and should be unleashed

Personally,

now.

have

I

been

it seemed

and I had

to

me

been

not

should not have

he could
have

few days ago:

me a

Kai-shek's

whether the Generalissimo could reoccupy
a
controversy in this country for several
vociferous group has contended that he should have

question

the mainland has

have] done

accomplished

man's

old

unleashed,

no

some

harm

nothing

able

in

to

understand

the expression

as

military authorities

he

on

my

side,

though his "unleashing" would

even

than

more

his

eradication.

There

the

to have well known

and

was

In

Chinese Communists.

some

this respect seem

limitations.

why

At least,

goes.

is

chance

no

of

his

10,000 troops off the Tachens; certainly he needs assistance

some

in the Communists' threat to take Formosa.

Joins Eaton & Howard
(Special

to

The Financial

The

outcome

become

&

Eaton

C.

Communists—is
Kai-shek

to

The

Financial

old

and

bound

Congress

our

—

when and

our

there

is

to throw

over,

Chiang

perspective^ The

new

a

the

to just why we should support that

as

grandeur for the rest of their lives.

to its position in the Far East.

or

to

seems

be

Assuming that is true

nothing Chiang Kai-shek

remain in power only

can

it

authorizing

"call" the Chinese

be argued that Formosa is essential to this country's

may

security

if

of him into

support

our

and his army in

man

do about it.

can

He

through the military support which

we

give him.

Undoubtedly, John Stewart Service, Vincent Carter and other
old

State

told

you

Department China hands

so."

cated during

advice

was

are

saying to

themselves, "I

They have suffered disrepute because they advo¬
the

nists and ditch

war

that

should play ball with the Commu¬

we

Chiang Kai-shek.

Their offense

that after their

was

rejected by the Washington government, they contin¬

the Chinese Communists'

insisting these Chi¬

cause,

but agrarian reformers. It is apparent

seems

that

the

Washington

wobble and it is debatable
sible

for

Incorpo¬

as

government

to whether it

they

are

certainly

stricken,

Hemphill,

Noyes & Co., 10
Post Office Square. He was pre¬

his

after

defeat

supporting him

Formosa.

and

manifestly the Chinese Reds

some

been,

so-called

a

not

as

if

Chinese

conscience-

command

of

China,

day, indeed, tomorrow if

we

on

Republic of China when

established in China.

are

respon¬

sell him

Republic

doing this under the myth that the Chinese Reds

temporarily in

viously with Goodbody & Co.

finally

conferences.

have

we

We have recognized him as the

Chronicle)

been

finally began to

not

was

Chiang Kai-shek's defeat; whether it did

down the river at the Cairo and Yalta

BOSTON, Mass. — Walter S.
Chapin
has
become
connected
with

episode

question is bound to arise

It

W.

With Hemphill, Noyes Co.
(Special

reason

not that.

affiliated

Howard

this

of

President to take such steps as are necessary to

Chronicle)

Mass.—Elliott

has

That's the

government has to take the stand it is taking.

Anyway,

that

Chiang

We have
are

only

Kai-shek

will

would only let him, move

over

and retake the mainland.
The bunk of this will

Investors

BANK STOCKS

(Special

to

of 11 largest Philadelphia Banks

Theriault
staff

of

Planning Adds

The

BOSTON,
Send for comparison

Communists, told

in Chiang

man

a

Carlisle Bargeron

back

move

of age."

years

ued to press

rated, 24 Federal Street.

PHILADELPHIA

been critical of our main¬

never

"Why, there is not

nese were

with

Maintained in all

Formosa.

on

day Chiang Kai-shek would

some

School

Mazur

BOSTON,

Trading Markets

so-

our

the

taining Chiang Kai-shek on Formosa, and who
has never publicly questioned the idea that

tion Center of

Mazur

Johnson

Active

of

dream

and

Senator, prominently in our Asian pol¬

It

spring

construction

slightly higher number

of

manner

feature
e

for

of living. This

homes

fond

Firsters

only practical
for supporting Chiang Kai-shek in his

the

Administra¬

tes

major factor that is
prevalent this year has to do with
development
of
the
home —
our way

tives

are

program

the

Another

changes in

assist¬

our

regaining the homeland; he has to have assistance in getting his

exec u

and

the

reason

the

for

be

been

But the Conservatives

developments is a grow¬
understanding by all con¬
must

can

A

without

he regain the mainland

much less

meantime, his forces would have killed

vorable

wage

his troops off the Tachens
ance,

we

ing

creases

is

It

larger.

were

concepts of management.

that

au¬

Implicit in this policy and authority is a rec¬

housewife to have

rising population.

a

and

—new

predicts
•Excerpt from an address by Mr. Mur¬
phy before the Board of Trade of Wash¬
ington, D. C., Washington, Jan. 25, -1955.

effect

the

has

reliably estimated that the popu¬
lation
in
the
United
States
in

to

and

thority "clarifies" and puts Chiang Kai-shek
place.

and the so-called China Firsters in their

has

Last
year there were approximately 4
million babies born (the greatest

curve,

have if the Chinese Reds make
a hostile move towards For¬

we

the other hand, this policy

On

mosa.

China

time to spend on

number

everything

develop¬

aided by

million

under construction.
These

the

is

That resolu¬

what he considers

called

Tied in with the home develop¬
ment

regards Red China.

as

gives the President authority to hit back and hit back with

which

with her family.

and

"clarify" this country's policy
tion

resolution which he has just,
Congress, has done more than

the

in

unanimously, got through

con¬

of enabling the
more

Eisenhower

President

is the trend to¬
of more prepared

Changes in Our Way of Living

—Street

systems

ward

time and which

some

unabated,

likely to be repeated

in 1955.

of

for

fields

new

permitted

ment.

cerned

—Automobile manufacturers

ber

for

tinues

has

which

life

the
been going

affecting

Not the least of all of these fa¬

predicted that retail sales

is not

on

of the News

By CARLISLE BARGERON

ognition that Chiang Kai-shek can't even get
trend

rapidly

and
salaries.
Naturally
it has opened up wholly

informed

pect to sell nearly 6 million cars.
—The fairly heavy liquidation
of inventories that took place in
1954

materials.

1970 will be 200 million. Whatever

—It has helped to lower costs of

be up this year.
—It is

industrial

increased

—products of better value.

production is likely to

will increase

many

—It has produced new products

atomic

steel

development has

has

—new

that

on

spending.

has read and re-read the pre¬

dictions:

gone

effects:

This

newspaper

appliances and building

tools and

when

year.

newscasters, and the trade papers
have been full of prognostications

much to the makers of

technical

production and

likely that the year '55

will

addition,

In

strong trend which has
labeled
"Do
It Yourself"

his¬
tory). In this respect we seem to
be going back
to the old days

compete for business with all the

ability at their command.

has

homes will be
the cost of new

in the
past and which is now going on
at a higher rate than ever.
This

to describe 1955 is that it will be

those

which

work

pros¬

pects for 1955

stems from the research

processes

Murphy

Wm. B.

observations
the

our ur¬

Our technical development as it
affects
industrial
products
and

I would like

on

home

in

that the cost to

a

means

II

almost

to
construction.

home

Ahead

multi-

from

up

equal

Another

tions asked.

a

be¬

be

economic

shifts

accounted for

is estimated

been
and

are:

Important

are

repair and fix

foods.

(2)

ques¬

to make

to

seems

healthy

on

cordial wel¬

come

couple of major de¬

velopment in our industry that is
producing a kind of revolution of
products and processes, and

will
August

in

can

I would like to

may,

a

familiies, and

movement

there is

(1) A high rate of technical de¬

mato crop

fee

about

hind

April

what

a

better

Washington

new

new

one-half

home

Now, if I

for

the

of

one-half

the

It

From

own

movement to
units, each with a

family structures.

Two Major Developments

talk

about

our

ground.
are

about

thing specific,
tomatoes,

a

by

than 1954.

country is most promis¬
When we get down to some¬

like

ns

homes

this

ing.

of

About

about

with

see

tremendous

a

plot

of competitive prosperity, leading
upon which favorable
prognostications are based. Sees as major developments: (1)
a
high rate of technical development in industrial processes
and (2) important shifts in home life that raise living standards
processing executive lists items

travel

who

us

single family

year

a

as

of

country

eyes

President, Campbell Soup Company

Picturing 1955

through

1960.

By WILLIAM B. MURPHY*

food

homes per year

new

Thursday, February 3, 1955

Financial

Mass.

has

been

—

the stench of the present

undoubtedly be clearly revealed when
mess

are

we

in is removed.

Chronicle)

though

Harold

added

F.
the

to

we

Investors

Planning Cor¬
poration of New England Inc., 68

member of United Nations will be viewed

a

fact, everything will be much better when
fools

we

Then, al¬

will not like it, the question of the Chinese Reds being
more

we

made of ourselves in World War II.

Devonshire Street.

realistically. In

finally realize what
Most of our present

world problems are due to our unwillingness to face that fact.

Now With

STROUD & COMPANY
Incorporated

•

Pittsburgh




•

Allentowa

•

with

9

Lancaster

•

Atlantic City

to

Gage Wiley

The Financial

BOSTON,
Wallace

PHILADELPHIA
New T«rk

(Special

Mass.

has

—

become

Gage-Wiley

&

Joins Revel Miller Co.

Chronicle)

George

E.

affiliated

Co.,

Inc.,

Third National Bank Building. He
was

formerly

with

Fernald & Co., Inc.

Lloyd

D.

(Special

to The Financial

(Special

LOS ANGELES, Calif.—Jack P.

Serina
Revel

Spring
Los

has

joined

Miller

Street,

&

the

Co.,

With Mitchum, Jones

Chronicle)

staff of
South

650

members

of

Angeles Stock Exchange.

the

LOS
G.

A.

to

The

Financial

Chronicle)

ANGELES, Calif. —Han
Seggerman

is

now

wil

Mitchum, Jones & Templeton, 6f
South Spring Street, members <
the Los Angeles

Stock Exchang

Number 5400

Volume 181

(607)

The Commercial and Financial Chronicle

.>

.

ment stores also broke away.

How

"Discount Stores"

High Is the Market?

Mr.

Members, Philadelphia-Baltimore Stock Exchange

reached

erage

Av-

houses, and the break-down of fixed
retail prices on automobiles and appliances. Says much of
what some businessmen call "unfair competition" may be "lazy
competition," and holds, unless department stores, merchandiz¬
ing chains, and independents learn to do business cheaper
and sell profitably at lower prices, "fair trade" may be doomed.

recently

410

as

against the 1929 high of 396, and
still above this figure.

is

is misleading because the

average

"yardstick"
to

as

somewhat

computing

for

used

the average does not
stant

But the

remain con-

length

than

shorter

is

and
it

no^w

was

As

measured

Price

by the Consumer

otherwise referred
of living index,"
the dollar now has a purchasing
to

Index,

the

as

"cost

with the

prices

with

Dow-Jones

of 398

be

reduced

Stock

238

to

158

or

points

the

with

Dow-

you,

*

and earnings,

The

cannot be said of in-

same

why these wide discrepancies should exist' in some in-

reasons

those

but

bear

reasons

looking into. Investors who hold
stocks which show inordinate appreciation in market value since

living index, place its

Obviously, the capital gains tax

the

compared

with

Adjusting

today's

to

figure of 230.8,

dollar,

1942

(398)

average

the 58-cent dollar,

on

results in

a

is responsible in

Holders

its and

138 points above

or

a

large measure

for the high level of certain stocks,

the low of 1942.

reluctant to take prof-

are

25% in taxes.

pay

wants

gress

sary,

at

a

adjustment is

do

to

the

however, in order to arrive
true

1942.

picture of the rise since

Despite

the

industrial

opinion

something

appears to

re-

a

members
gains

capital

the

gotten

some

should

under

late in 1939, stocks prices, for

prove

tax

ing to

unwarranted reason, moved

to

be

an

effective

Investors might be will-

measure.

pay a

ernment might easily derive more

bringing

revenue

down from

Dow-Jones

121

average

92.9 in

in 1939 to

now

1946

from

American

Market

Market

Rise

Jan. 19,

Adjusted to a

Since

and Stock Div.

1955

58c Dollar

1942

29%

943/4

55

&

733/8

423/s

90

121/4

65%

373/4

200

Cork.

Armstrong
Atlantic

42

88y4

51

38 y4

22

360

593/4

130

Refining
Aviation

Bendix

—

Warner

duPont

4%

_

_

__

__

...

—

_

General

Electric—

General

Motors

_

_

—

Gillette
—

_

.

Oil

Monsanto

-

Chemical

Dodg&—

Phillips
Radio

—

Powder

Kennecott

_

Petroleum

.

_

Corporation--

Remington

.

—

.

Rand

—

Sears-Roebuck

Standard—California
Standard—New

Standard—Ohio

...

Jersey_

Socony
Sun

Oil---

Texas
U.

S.

Company
Steel

_

_

Westinghouse




.

,

,

103%

16%

106

slip him
a

in

back

few

a

—

bucks

extra

1948?

It

was

tric

got

he

made

of

plently

easy

money.

Suddenly
market
The

in

became

buyers' market.
back

was

consumer

sellers'

the

1953
a

the

in

driver's seat because much of the

demand

pent-up

Dealers

fied.

to

how

make

day the
the

had

who
a

satis¬

been

learned

never

dollar

the

trouble.

wound up in

way

hard

Some

stock market will suffer
experience!

same

Discount

at

Markets

time went on,

to

appear

reduced

55%

/

21

235

*

240

921/4

264

32

850

49 %

28%

300

94%

54%

266

37%

25%

1583/4

3%

55%

71/8

it

had

elec¬

or

since-

however,
had

consumers

only

were

waiting for lower prices.

Finally,

dealers woke up
hard for sales.

and again worked
This competition
finally broke "price fixing" not
only in the automobile industry
but

all

along the line.

popular to

break

it

ignore

to

was

It became

trade"
Prohibition

"fair

during Hoover's Administration.
Discount

The

showrooms,
with

cars

Sojne

not

the

hat

of

It may be the so-called automo¬
bile

boottlegger and

omy a

but I

have

prominent
to

sell

made
up

a

or

remember

discount

whether

depends

and

effort

their

"unfair

tain

of

to

rescue

The

when

broke

General

en¬

price fixing

late

last

Electric's

year

Major

Division announced it
giving its distributors the re¬
sponsibility for determining re¬

Appliance
was

$800-

tail

some

businessmen

competition"

With this announce¬
ment, big New York City depart¬

This announcement is neither

an

prices.

offer to sell

competition
the highest standard

living in the world.
unless

Further¬

department

stores,
chains, and inde¬
pendents learn
to
do
business
cheaper and sell
profitably at
lower

prices, "fair trade" may be
Perhaps
S e 1 f-Service

doomed.

will

save

the day.

Garleton Davenport With
Carr & Thompson
(Special

to

The

Financial

Chronicle)

BOSTON, Mass. — Carleton
Davenport has become associated
with Carr & Thompson, Inc., 31
Milk

Street.

Mr.

Carleton

Corp. In the past he conducted his
own

investment

business

ton.

435)934 Shares

y

IV2

69%

40%

2%

51%

30%

1,185

11%

623/4

36%

210

25%

99

Corporation

of America
Common Stock
$1 Per Share

125

57%

1003/4

58i/4

22

100%

58i/4

163

11

49%

24%

127

15

72%

41%

178

2%

38%

22

800

2%

33%

19%

680

10%

753/8

43%

300

8

751/4

43%

437

15

107%

62

310

•

Price

120

26%

93/4

433/8

25%

157

6

&L%

29%

390

68

39%

210

14%

85%

49%

240

143/4

70%

40%

173

15%

78

451/4

180

$24.50

per

Share

Copies of the Prospectus may be obtained in any State only
writers, including the undersigned, as may

LEHMAN
February 2, 1955.

wag

formerly with Coburn & Middlebrook, Inc. and prior thereto was
an
officer of Clayton Securities

solicitation of an offer to buy these securities.

Minerals & Chemicals

rev¬

It is this kind of

made only by the Prospectus.

Par Value

2.600

i

nor a

be

may

Another

merchandising

their profits.

dam

ingenuity

may be needed to main¬
healthy free-enterprise sys¬

a

more,

in discount houses! Others wanted

to

the
apply

"lazy competition."

every item
they found

interference

manufacturer

olution

chain began
$89.50 vac¬

manufacture

a

on

they

Much of what

call

from manufacturers who vowed

of

de¬

to their
They cannot expect to al¬
ways:, make
money
by playing
golf or going to Florida.

$49.95, and stillprofit.
Cries went

they would buy back

econ¬

the

work.

for

good

a

how

his sales agents are wealthy or

poor

"fair-traded"

cleaner

discount

our

real service. I do not know,
can

that

us

makers, carpet weavers, and
others were in trouble. One

uum

the

rendered

partment stores, mail-order con¬
cerns, and the chains started 60
years ago.
They have reminded

many

ballyhooed
discounts

were

only ones losing money:
Appliance manufacturers, pen and

manu¬

$1,000 on new cars. This greatly
encouraged the "Discount Houses."

Lessons for Merchants to Learn

that gave us

be¬

reopening ■* new
"great

wholesale trade.

tem.

Scare

dealers

force "fair trade" and

Opened

new

House

automobile

The

Used-Car Lots

on

prices.
after

facturers,

Word,

that

around

car

salesmen

II.

War

government

gan

did

them

the money to buy and

market; the dealer called the shots
and

approached by
appliance

World

sellers'

a

are reported to be doing
billion retail business an¬
nually and accounting for about
18% of all retail and 15% of all

$25

a

preferred waiting list

90%

22

6%

12%

-

_

—

26

15

...

—

Hercules

Phelps

—

—

Goodyear
Gulf

.

-

_

Firestone

.

__

Steel

Bethlehem

Borg

Products

Home

been

of

now

"respectable," and dis¬
are^
taking their
places.
Whether here to

houses

one

the

in

have

"leave

unfair—but

not

department

stores

latter

stay cannot now be foretold. They,

of Detroit bankers",
the
industry's, plight,

that

a

in merchan¬

the

dime

of

however,

eliminate

to

did
These

now

are

kind

houses

count

group

found

as

get on

and

former

stones?

any

studying

ber how you had to know Joe and
to

considered

The offer is

Adjusted to

Allis-Chalmers

it

as

even

as

stores

become

/Association

would

unturned"

These
same

lower tax than is

a

derived from the higher.

Subseq. Split-ups

Chemical

to

it

dising

bootlegging and all other practices

1953? Remem¬

1942 Low

Allied

rode

from

Roger W. Babson

that

the

10% tax and the gov-

in the opposite direction until 1942

the

average

dealer

sales"

had

which

covery
way

train

gravy

to

be getting out of hand,

the

in

cut

certain

of

the

If Con-

check the rise in stocks which, in

neces-

this

in

use

member

As

further

A

a

discussion. Re¬

Some can be

far behind it.

ers

present value at about 58 cents as

based

to

dividual

ing brief list selected more or less
3t random will illustrate the point,

estimates

is

example

good

.

.

1942, would do well to seek an

and

auto¬

mobile

expert appraisal. The accompany-

further,

The

of industrial

growth

1 9 5 5.

cost in

moderate considering the ac-

companying

stone

no

A

better

Dealers

announced

may

this

qualityfor less

production

houses.

Nineties.

time the National

same

Automobile

turn

is only about 120%> which seems
very

About the

For

mean

the dollar has declined

the cost of

Price

or

Fixing!

gitimate rise since 1942, therefore,

stances,

1942

Trade

air

Acts

The le-

•

.....

Since 1942 the purchasing

of

power

that time.

pr0gress since

r

industrial

on

ah since 1942. There may be sound

Jones Industrial Average at a low
of 92.9.

based

The current figure

1929.

in

rise

a

found that have scarcely risen at

to

prices reached their low-

level

est

current

figure

(1/25/55), therefore, would

lower than

ered

is

can't kill competition in
economy,
not even with

free

a

1954

in

you

points can reasonably be consid-

the

Index

60-cent dollar.

it

1929,

the

adjust

to

necessary

of

those

110

Only

that

significant les¬

learned

business

sons

issues. Some are far
is ahead of the market average; oth-

comparison of stock

true

w*13* bad been lost.

One of the most

was

^

In order to

dollar.

1929

a

therefore,

than catching upon

more

60 cents compared

power of about

obtain

the rise since 1942,

nothing

in

1929

Twenty-eight (28) points of

1942.

rise of "discount

cusses

stock market developments,
and concludes the capital gains tax is responsible in large
measure for the high level of certain
stocks. Says investors
who hold stocks which show inordinate appreciation in market
value since 1942, would do well to have an expert appraisal.

They

that

and revolution

iuror

Babson, contending "you can't kill competition in a free
economy, not even with fair trade acts or price fixing," dis¬

Mr. Stee'man offers data regarding

Industrial

discount

provoking

Lilley & Co., Philadelphia

Dow-Jones

decided

they could
stand the competition1 of the

not

By ROGER W. BABSON

By NORMAN STEELMAN

The

finally

11

from such of the several Under*

lawfully offer the securities in such State,

BROTHERS

in Bos¬
•

12

The Commercial and Financial Chronicle...

(608)

the

for

Electric Industry

Sponsors
Largest Investment Program
By K. M. ROBINSON

Despite

Coast

Growth records will continue to
be

the

made in

Construction

pected

to

this

is

year

ex¬

ex¬

the

ceed

electric light and

industry in 1955.

power

rec¬

level

attained

1954.

nomic

factors.

the

industry's

use

of

be

classifications.

better

power

It

continued

in

is

kilowatt hours
455 billion.

which

be

in-

by
t

inves-

the

o r

owned

-

construction

expenditures of about $2.8 billion.
The record shows that the light
and power

industry since the end

of World War II has been
in

in

programs

ment in
about

engaged

largest expansion
the nation. Invest-

plant and property is now

billion, as compared
with $12.5 billion in 1945.
$28

While

utilities

the

have

financing construction
of

two-thirds

about

of securities

sales
from

that

against

will

see

is

the

third
and

a

reserves

it

accruals,

1955

the ratio

on

through

depreciation

surplus

been

expected

increase

an

in

will

continue

to

increase

during

the coming year, although the rate
of

in

growth will not be
recent

about

years.

1.5%

An

rapid

as

increase

of

as

is indicated for

bringing the total number of

15

years

has

brought the

figure

Increasing

the per customer
consumption "of electricity offers
tremendous

vast

it is not tied to

any

other

Join Income Funds
(Special

the

NEW
A.

to

have

The

and

Charles

staff

the

joined

—

additional

plenty

when

it is

the

is

$120

William

E.

Bedient

of

Income

Funds, Inc., 152 Temple Street.

which

to

Among them
Water

Power

two years ago
$50 million hy¬

a new

dro-electric development in north

Idaho,

and

for

which

only

permission

$87

new

Montana.

to

recently
build

million

At the

same

an¬

plant

in

time it

is

costs

is studying additional

area

power

will

whose

sites

run

into

the

total

hundreds

Investment

,

EDITOR'S NOTE:

to

proceeding

scale

with

undertakings

cumstances

as

warrant,

such

fast

the

largeas

cir¬

outlook

as

Owing to

mechanical error, Mr. Schwarzpublished in our issue of Jan. 27, page
49, were

Stock Prices

a

Field

Although the stock market

dinner at the Detroit Boat Club.

lifted
Feb. 21, 1955 (Milwaukee, Wis.)

Milwaukee

meeting
and
Skyroom
of

election

at

the

Plankinton

the

Hotel.
Feb. 25, 1955

(Philadelphia, Pa.)

Investment Traders Association
of

Philadelphia

annual

11,

1955

(New York,

all-time

N. Y.)

stock

high

during

the Biltmore Hotel.

to

a

1954,

review, reports that "the

average

price

relative

' to

of

earnings

high

it

as

The

stocks

common

and

was

yields is not
in 1929."

March

23-25, 1955 (Pittsburgh,
Pa.)
•
,"'•»> ■
■
/

1929

Dow-Jones Industrial Average
Earns, per sh., previous year

of

Stock

ernors.

High
$404

24.8

(New York

lower

City)

Security Traders Association of
New York annual Dinner at the
Waldorf Astoria.

(Houston, Tex.)

Association

cial

spring meeting

May

Federation

of

Finan¬

Societies
Commodore.

18-21,

1955

(White

at

tho

stock prices
they were

ROOSEVELT
UNIONDALE

14.8

2.89%

a

now

quarter

com¬

parison of the two market peaks:
today's market is predominantly a
cash

market,

whereas

fed

was

the

1929

by huge quantities

Spring

meeting

of

Board

of

Governors.

been

10% in 1929, results in less specu¬
lation in stocks today; also fewer

it is

11-14,

Franklin Square

1955

(Mackinac

Is¬

capital stock

were

As all of these shares

available for

were

for

offering and this advertisement

appears

meeting of Board of Gov^

Association

subscription to the stockholders of the bank.
purchased pursuant to subscription rights, no shares are

offered

(Chicago, III.)

as a

matter of

record only.

of

(Denver, Colo.)
Stock

Exchange

Firms meeting of Board of Gov¬
ernors.

Nov. 16-18

Blair & Co.

(New York, N. Y.)
Association of Stock Exchange

Incorporated

Firms meeting of Board of Gov¬

W. C. Lang Icy & Co.
Bache & Co.

Hornblower & Weeks

Hayden, Stone & Co.

Grimm & Co.

February 1,1955




Hallowell, Sulzberger & Co.

in Brief" says:

advance

the

does not

Loeb

director

a

of

New

Capital Fund of Canada, Ltd.,
announced.

He

fills

the

cancy on the board caused
recent death of his

va¬

by the

father, Carl

M. Loeb.

-

v

;

-

"Clearly, such

cannot

Over

continue

in¬

longer period

a

ernors.

Nov. 27-Dec. 2,

1955

(Hollywood,

Investment Bankers Association
annual
Convention
at
Holly¬
wood Beach Hotel.

Joins Lee Higginson
(Special

ginson

growth of the nation's

Corporation,

an

ment

by

stock

area

where

an

to

The

Financial

issuing

private

stock.

high

prices, if they can
stability at a reasonably
level, can make an impor¬

tant

contribution

for

to

business

an

(Special

moving

are

And most signs point

The

Financial
—

Chronicle)

now

with

George W.

Goodbody

&

Co.,

Penobscot Buildling.

White Adds

orderly

"Business activity is now
up.

Chronicle)

Howard M.

Checketts and Howard C. Roberts

generally."

survey expects such
orderly advance to be realized

to

DETROIT, Mich.

(Special

The Chase

1955.

—

Goodbody Adds Two

in¬

achieve

advance

Federal

Brown has become associated with
Keller & Co., 53 State Street.

creasing number of companies can
afford to finance capital invest¬
Thus

50

With Keller & Co.
(Special

BOSTON, JJass.

prices into

.L ;

Chronicle)

econ¬

may well serve to assist this proc¬
ess of growth.
It has lifted stock

in

Financial

Street.

omy.

an

The

of stock prices must

average

to the

to

BOSTON, Mass. — Charles W.
Lovejoy, Jr. is now with Lee Hig¬

be geared to a growth of
earnings,
which in turn are intimately tied

Florida)

Boenning & Co.

the margin.

"Yet the 1954 rise in the market

Sept. 21-23, 1955

(Per Value $5 Per Share)

on

survey

"extraordinarily rapid," "Busi¬

an

ernors.

133,300 Shares*

Chase

definitely.

Investment Bankers Association
Fall

*133,300 shares

16-17

trading

are

the

elected

York

constantly
rising stock market. prices." De¬
scribing the rise in the past year
as

National Security Traders Asso¬
ciation annual convention.

Sept.
of

But

L.

Co., has

The current margin re¬
quirement of 60%, compared with

ness

Sept.

John

John L. Loeb, senior partner of
the investment
banking firm of
Carl M. Loeb, Rhoades &

foresee any "new era of

land, Mich.)

The Franklin National Bank

Elected Director

"Business in Brief cites another

buyers

Springs)

ROCKVILLE CENTRE

to

3.99%

are

than

significant difference in its

Sulphur

Investment Bankers Association

GREAT NECK

promises

century ago."

boom

Analysts

Hotel

FLORALPARK

scene

"Clearly," the bank's analysis
states, "in terms of standard com¬

parisons,
Apr. 29, 1955

National

FARMINGDALE

business

high level of activity marked
by lively competition."
r
1
a

$15.36 $27.23

yield
3.15%
high-grade bondsl_ 4.69%

on

Exchange

May 8-10, 1955 (New York City)

LEVITTOWN

1955
be

1954

$381

of credit.

ELMONT

year."

survey concludes,
principal characteristic of the

as

High

earnings

at the Shamrock Hotel.

INWOOD

this

«^In
sI}ort>" the
the

ing comparative figures to support

Yield

Firms meeting of Board of Gov¬

ers

FRANKLIN SQUARE

continued, though moderate,

its conclusion:

Dividend

Texas Group Investment Bank¬

BELLMORE

a

now

Ratio: Price to previous year's

April 24-27, 1955

GROWING WITH LONG ISLAND IN

to

improvement

publication cites the follow¬

New York Security Dealers As¬

sociation 29th Annual Dinner at

boom

prices

"Business in Brief," the Chase Na¬
tional Bank's quarterly business

dinner

at the Benjamin Franklin Hotel.
Mar.

common

new

annual

Club

Bond

1929

vs.

that, in terms of standard comparison, "stock prices are
lower than they were a quarter of a
century ago."

(Detroit, Mich.)
Club of Detroit annual

Bond

Today

Chase National Bank's "Business in Brief"
compares data on
relative stock market prices in 1929 and
1954, and holds

Feb. 16, 1955

Association

And, as many groups of power
companies actively study atomic
power developments with a view

our

past year, as well as the normal population increase
underlying the demand factor, I feel the outlook for busi¬
ness
during 1955 cannot but be good.
'.J

EVENTS

...

of millions.

ma¬

major heavy industry.
With a continuation of basic
activity estimated at current
levels, which are high, and taking into consideration that
there will
probably be some replacement of business in¬
ventories, which have declined five billion dollars during

COMING

seeking actively to implement the

partnership idea of the present
Administration, and in coopera¬
tion with other private utilities

and the

distorted, hence its reproduction herewith.

available

power

needed.

completed

in

expenditures

of

Washington

company

million

Government

they will be readily sold.

jor factors in steel consumption,

scnild's remarks

utilities,

committed to

are

'

,

.

the

Chronicle)

Financial

HAVEN, Conn.

Ward

In

have

opportunity for sales

growth. Viewed by experts in the

field,

J.

Lewis

9

The forecast of the

ceed that of 1954 and that

with Shear-

Co.,

I

;

industry is that the volume of construction
will equal and
probably exceed the volume experienced
in 1954; spokesmen for the automobile
industry estimate
that the production of new cars in the new
year will ex¬

companies in the
plan a construction

outlay of some
1955 alone, and

major

29 million in 1939.

Some

year.

this estimate.

Private power

Northwest

cus¬

last

be

2,800 kwh. mark by the

the

&

Hammill

son,

now

■

construction

Construction and automobile production are two

Conn.—Robert

r

,

ahead.

year

opinion appears to augur favorable
business activity in 1955. Two
important factors bolster

Chronicle)

Financial

Street.

of the year.

of the

tomers served to 51.7 million. The

again

this bracket will be

in

The

Conheady is

notably in the Pacific Northwest,
already have an annual residential
usage that is about 2l/z * times
greater, and predict consumption
in excess of 7,300 kwh. by the end

1955,

mushrooming growth of the
up from

the
of

other

The number of utility customers

should

use

to

HARTFORD,
K.

Resi¬

year.

used

filed

financing through securities.

past

age

the

of

one

growth.

performer, and national aver¬

end

Kinney Robinson

estimate

(Special

will reach

1955

in

Roney
members

Shearson, Hammill Adds

to

star

near

companies
who

with

position
load

Alanson K.

—

C.

& Co., Buhl
Building,
of the New
York and Detroit Stock Exchanges.

comparable to the 8% increase

dential

mil¬

8

lion is planned

Wm.

The 1955 increase will

noted during the

of

of

cus¬

that the sale of

expected

scheduled
entire

sell

to

sales activities which will

up

result

capability is

dustry,

DETROIT, Mich.

only

a

good

The direction of

to The Financial Chaomicle)

Brush has been added to the staff

supply than during
postwar
period,
in

Mr. Schwarzschild holds high volume of con¬
struction and heavy automobile production
:

immediate
are

President, The Central National Bank of Richmond, Virginia

matter of taxes and discrimi¬

(Special

all

And,

By W. H. SCHWARZSCIHLD, JR.

truly realized only when
legislative inequities in

With Wm. C. Roney Co.

limited
to

In 1955 Favorable Outlook

do a

augurs a

eco¬

ability

Impoitant Factors

good job for the American public.
The full value of their capabilities

natory preference in power sup¬
ply are remedied.

bv

its services

tomer

generating

the

is

It

by
the

step

for

limited

it

nor

companies

Some

13 million kw.
of

is

trend,

the

ord-breaking
in

gives

Two

companies

demonstrated their ability to

the

data on electric power
growth along with the program of expansion in current and
future years. Says sale of kilowatt hours in 1955 is expected
to reach 455 billions, and represents an increase comparable
with that of 1954, Concludes, as power companies study ap¬
plicative atomic power developments, outlook for industry
"is very promising."
utility executive

very

restrictions, in¬
have

many

vestor-owned

serious

West

is

industry

promising.

can

President, Washington Water Power Co., Spokane, Wash.

entire

Thursday, February 3, 1955

ST.
is

to

The

Staff

to

Financial

Chronicle)

LOUIS, Mo.—Olin W. Shell

now

connected

Company,
Building.

with

White

Mississippi

&

Valley

Volume 181

Number 5400... The Commercial and Financial Chronicle

Company
bined

on

stated

by

feller

NEW

BRANCHES

NEW

OFFICERS, ETC.

Bankers

and

REVISED

CAPITALIZATIONS

which

Dec.

the

Westchester

CONSOLIDATIONS

National

and

Westchester

News About Banks

of

shares

com¬

reflect

Bank

were

31, 1954.
It
National Bank

that

brothers,

is
of

John

appointment

The

as

of Thomas W.

Vice-President

a

of

Manufacturers Trust Company, of
New■« York

Feb.

2

announced

was

by

Horace

President of the
Mr.

C.

Heslin

joined
Department

Trust
in

March,

pointed

ber,

1950.

ber

of

Personal

of

the

and

New

ap¬

in

Octo¬

a

mem¬

been

York

1939 and is also

bank

was

Officer

He has

the

Company.

the

1947,
Trust

a

on

Flanigan,

Trust

Bar

since

member of the

a

New York County Lawyers Asso¬
ciation.

Floyd

L.

Hird,

Secretary, and
uel

Hird

&

appointed

Vice-President,

Director of Sam¬

a

Sons,

Inc., has

member

a

of

been

the

Ad¬

visory Board of the Empire State
Office (350 Fifth Avenue at 34th
Street)
of Manufacturers Trust
Company, of New York, Presi¬
dent

Flanigan of the Trust Com¬

Thomas

the

R.

Rudel

New

Machinery

York

trustee
Bank

City,
The

of

of

ing to

Rudel, President of

Co.,

Inc.,
elected a

was

Lincoln

Savings

Brooklyn, N. Y., accord¬
announcement made by

an

John W.

Hooper, President of the

bank. In addition to his ownership
of the Rudel Machinery
Company,

Mr.

Rudel

is

Chairman

Board of the Rudel

Machinery Co.,
Ltd., Montreal, Canada, which was
founded by his father.
From 1932
until 1952, Mr. Rudel was asso¬
ciated

with

Pencil

Co.

still

retains

with

Brooklyn,
is

various

also

Faber

in

given

was

by the New York State Banking
Department to the application of
the

Adjustment Bureau of the

tificate of increase of capital stock
from $200,000 in 4,000 shares (par

Cloth

*

Directors
of

New

stock

of

of

have

dividend
also

20,025

stock,
27 by

for

D.

shares

10%

capital
Jan.

on

Henry G. Barber, President

and

Chairman

the

bank.

after the

of

The

assets of Westchester

cer¬

a

each), to $250,000 consisting
5,000 shares of the same par
*

the

National

Board

directors

of

acted

stockholders, at the

an¬

Y.,

has

re¬

of

South

offices

of
the
bank,
Avenue, approved an increase in

nounced.

the authorized

chester's

will

Tarrytown

Road

Ralph

Broadway,

T.

President, has an¬
The new office, which

Jr.,

National

be

Bank
in

second

West¬

of

Tarrytown,

Frederick

of

National

Jan.

on

elected
and

Mr.

Barber

Board

elected
the

directors

arid

institution.

dividend
stock

is

equal

to

bank

$100,125,

ord

of

as

proval of the application followed

immediately
the

re¬

of

stock

in shares
or

one

of

as

rec¬

Jan.

26, 1955.
Under
of the directors, the
stockholders are being offered the
right to purchase one new share
the proposal

of

.

stock

The

for

20,025

offered

at

each

of

one

new

of Jan.

riow

held.

shares

new

$16.50

stockholders,

10

pro

are being
share to all

per

rata,
for

one

on

troller

the basis

each

held

of the

as

26, 1955.

the approval of
by the Comp¬

Currency.

*

of

new

on

consolidation

has been set for the

amount

an

shares for each 10 held

re¬

President

10%

in

the

and

officers

The

payable

the

in

as

Chairman

Clifford
Board
chester

*

*

■*::*.

President

was

Y.

N.

Agency

The Tappan

Plains,
on

Y„

Jan. 31,

ferences

that,

of National
White

of

jointly
result of con¬

as a

the

of

T.

announced
the

between

Directors

of

Boards

two

institutions,
approval of the consolida¬

formal
tion

Ralph

Westchester,

N.

the

of

two

recommended

the

Re¬

Zee National Bank

*

annual

will

banks

both

to

*

Central

York

*

*

Savings

25

which

at

an

amendment

Articles

of

Association

splitting the capital stock "two for

1955,
shares of $10
25,

each

value stock

par

the number

of

share

amendment

$20

222,500 shares.
also
approved
an

$10
on

subscribe

to

the basis of

five

par

Jan.

and

one

new

14/15ths

rata

share for

shares of

value stock held of record
25.

The

new

offered at

$32.50 per share.

a

shares

The offering
is being underwritten by a bank¬
ing group headed by The First

Boston

clusion

tional
there

Corporation.
of

the

shares

will

be

sale

of
a

At the con¬
of the addi¬

capital
stock,
of 260,000

total

has

the

announced

New

of

promo¬

be

submitted

of

the

the

to

Currency

his

formal

tion of Milton Rich to the
post of

approval and, if approved, will be

Assistant

submitted

Mortgage

Officer.

Mr.

Rich joined

the bank in 1928.

1953 he

made

FHA

was

and

In

Manager of the

Veterans

Administra¬

tion

Mortgage Division of Central
Savings..
.

I1L
E.

v'-

*

:

■

Chester

*

Company

announced

who

is

of

that

New

and

York,

Levine,

Officer

-

at

the

Broadway and 24th Street Office,

the

stockholders

for

This advertisement is neither

on

has

or

of

formed

consolidations

■*

came

*

*

White

associated

with

who* be¬

the

Bush-

&

County

of

New

entire

Officer, has been elected

said.

President

and

according

to

made

21

Jan.

Mortgage
an

a

Vice-

Officer

announcement

Trust

Company.

of

county

complete

Westchester

of

Westchester

will, it is con¬
possible
even

banking

northwestern

Hildebrand,

1936,

This

step follows closely the

Vice-President

cent

consolidation

a

of the bank.




The

condition

current

shows

of

in
re¬

$98,-

statement of
and

resources

liabilities of $23,290,470.76.

Even

indicate

name

started

as

Home

its

growth.

Home

The

Meriden.

West

with
changes in

its

Later

National

Trust

Co.

The

bears

witness

change
to

usefulness of the

the

Bank

it

1916 he returned

In

the

bank,

in

in

and

chosen President.

an

as

cashier of

1926

he

The present President of
the
bank, George J. Sokel, came to of¬
fice in 1934, succeeding Mr. Perk¬
In

Lane,

the

long

President

same

a

year

director

of the

bank,

Arthur S.
and

Vice-

v/as

made

Chairman of the Board, a position
which
was
abolished
after
his
death

in

It

1938.

is

under

town

services

to

the

est

period of expansion.

The bank

Dec.

31, 1954, had a capital
stock of $500,000, surplus of $500,000, undivided profits of $361,322
on.

and
of

as

indicated above, resources

$23,290,470.76.
*

Advices

ning
staff

in

News"

*

the

of

*

Newark

Jan.

correspondent

stated that control of the Franklin

Trust Co. of Paterson, N. J., went
to a minority group of stockhold¬
on

headed

by two

bank

capital

stock

Passaic

for

$790,790.

From the

were

County

same

auctioned

National

of

The

Bank

'&

re¬

Tarry¬
Trust

account

we

also

quote in part:

expanding

The shares, repre¬
senting approximately two-thirds

it

as

Continued

on

Copies of the Prospectus may be obtained from any of the several underwriters,
including the undersigned, only in States in which such underwriters are qualified
to act as dealers in securities and in which the Prospectus may legally be distributed.

January 28,1955.

at

Court House

PRICE $10 PER SHARE

HEMPHILL, NO YES & CO.

Incorporated

officers

Jan. 21, when 20,540 shares of

the

names

bank, just

REYNOLDS & CO.

"Eve¬

22, from a
in Paterson

page

offer to sell nor a solicitation of offers to buy any of these securities.
offering is made only by the Prospectus.

DEMPSEY-TEGELER & CO.

the

Presidency of Mr. Sokel that the
Home Bank has enoyed its great¬

CAPITAL STOCK, H PAR VALUE

part of the County.

was

He served until

CORPORATION

W. E. IIUTTON & CO.

1889x

his death eight years later.

It

and

in

left

for Connecticut and Rhode Island.

of

became

Bank

but he

Mr.

to become national bank examiner

ers

The Home Bank has grown

times.

1870

year

for: the

work

banking facilities, it is
Westchester
County

greater

Trustee since

liabilities

and

sources

bank

to

The

Dorman also announced that Fred
a

bank, reproduced

the centennial brochure shows

881.06.

went

1854, the
chartered.

was

National Bank and National Bank

make

eltced

the

of

ment

$100,000 to start the
first published state¬

The

Perkins

in

in

born

was

that the bank

122-year-old Westchester
National

tended,

been

initial

bank.

subscribed

leaders

termin¬

was

Now

by Gerald R. Dorman, President of the bank.
Mr.

has

than

more

institution

only at his death in 1926.
Succeeding
Mr.
Doolittle
as
President was Charles S. Perkins,

Rochelle

Bank, of Peekskill, it will make available to the

Savings Bank of Brooklyn,
N. Y., in June, 1953 as Mortgage

wick

industrial

and

Company,
Plains, The First National
& Trust Company of Tuck-

with the

Baumann,

has

1854, when Meriden was
of 3,599,
local business

town

the

the

ated

National Bank & Trust

Bank

Arthur

bank

in

Back

the

with

AXE SCIENCE & ELECTRONICS

Company, Huguenot Trust
Company, New Rochelle; Peoples

'

C.

we

The Financial growth

kept
with its physical expansion.

pace

an

Edgar
J.
Doolittle, the fifth
President, was a man prominent
in the
financial, industrial and
political life of the city. A bank
director since 1886, his connection

2,500,000 Shares

Trust

Bank

dent.

the

a

at

automo¬

an

successive

ahoe and The Tarrytown National

Vice-Presi¬

was

meeting.

of

Westchester

by

dent

Assistant

which

stockholders

promo¬

1913.

super¬

has been advanced to Vice-Presi¬
from

brochure

the

He died in

about March 31.

Bank

been

are

his

NEW ISSUE

of

visory authorities, it is hoped, it is
to have the consolidation
effective

origin
contained in an

From the Meriden "Journal"

The

ratification.

stated,

National

President,

Irving

Credit

a

to

institutions

Upon final approval by the

*

Gersten,

of The Public National Bank

Trust

both

Bank

in

President, but his term

be

boards.

Comptroller

for

the

as

Bank

He had served the bank for

brief.

was

from

Junius Norton

Home

the

of

Abiram

was

Chamberlian

Mr.

President

ins.
that

noted

Home

growth

also quote:

will

subscription price

be
of

the

an

pro

the

-

the capital funds

entitled

of

to

bank

is

of

then called

was

"Journal"

presented

to

authorizing

Bank

corning of the railroad,

illustrated

on

in¬
of the
by the sale of 37,500 addi¬
tional shares of capital stock of
$10 par value. Each shareholder
in

crease

Home

Meriden.

and

of shares outstanding

111,250

in

"The

the

facts

increasing

held,

back

it

The

two
value stock in

par

of

occa¬

Meriden."

West

to receive

are

for

record

of

"Journal"

referring to the

ley toward what

approved

Shareholders

that

noon

business moved down into the val¬

share¬

Agreements of consolidation will

Bank

succeeded

who

with

of share¬

tional Bank of Boston, Mass., was

exchange

of

Up to that time,
Broad Street had been the prin¬
cipal business axis of the city, but

holders of the Rockland-Atlas Na¬

Jan.

Co.

birthday of the
by a luncheon

Meriden

in

was

West

*

meeting

Jan.

The

named

*

*

.

of

is newly organized in
County. Harry Hoyle,
local constractor, is Chairman and
President, and George M. Schoiield, architect, is Vice-President.

one.

Trust

&

May, 1854, that
a group of local
businessmen, im¬
pressed by the potentialities of
Meriden, organized a bank pri¬
marily for "home benefit" and

Nyack

the

annual

recent

marked

was

11

It

Rockland

holders

the

Bank

a

1867 to be cashier

New Britain in

bile accident in

sion:

be¬

and

construction Finance Corporation.

each

•

West¬

of

and

Tyner, Jr., President
of

Pa.,

of

Examiner in the

an

Philadelphia

on

.

National Bank of

County

Peekskill,
Bank

No date

opening.

Couch, Chairman of the

and

bank

day.

on

2786.

*

for stockholders held at

Pa.,

Jan.

of

*

of the 100th

vance

formerly Vice-

Stroudsburg,

Shareholders

At

Following
National

the

fore that

meeting.

meeting (on Jan. 11) of the Home

Stroudsburg Security Trust Com¬

Company

directors

Nyack,

Philadelphia,

a

stock.

Tappan

of

25

issues of Dec. 16, page 1954

our

*

the Provident Trust

of

having
201,500,

the

new

Jan.

Meriden, Conn., the formal obser¬

from

common

the

was

was

of

been

31.

Tarrytown National Bank & Trust

time,

has

the

Vice-President

Bank

Mr. Palmer

common

same

Di¬

of

page 2472 and Dec. 30, page

Nyack, N. Y., it was made known

consisting

shares

of

*

Palmer

Cashier

and

excess

is stated.

Executive

elected

of

prior to its consolida¬
tion on Dec. 31, 1954, with Na¬
tional Bank of Westchester.
Ap¬

elected

was

Board

at

came

tion to be

$1,001,250,

originally applied for by The

the

who

45 years at the time of

in

be

*

shares

of 200,250
stock, each
par value of $5, to $1,consisting
of
240,340

1946,

of

Chamberlian,

in

it
*

to

and

of the Home Bank.

since

at

Eli

1856,

salary of $100 per month.
Succeeding Mr. Butler upon the

the

bank

in

President

became

latter's death in 1881

member

He served

Upon the resigna¬

Baldwin

Mr.

posed increase in capital appeared

will

$125,000,000,

branch in Tarrytown, N. Y., at the

intersection

of Dec. 31, 1954 amounted

as

of

1911.

held

Tyner,

capital stock from

Westchester,

N.

of the

resources

tion

Westchester

ceived permission from the Comp¬
troller of Currency, to open a new

nual meeting at the new

principal
245 Fifth

of

Plains,

of

excess

$113,961,000, and total deposits
were
$104,025,0u0.
-Huntington
Blatchford, a Vice-President of
a

County Na¬

*

Bank

White

Total

in

first

the

was

Previous items regarding the pro¬

The
of

funds

for two years.

tional Bank and National Bank of

*
*

ago.

years

Baldwin

rectors

value.

offer

an

of

announced

was

Bank

a

of

The combined

consolidated bank.

Trust

&

bank

employees of both
be
retained
by the

will

banks

capital

to

Westchester.

All officers and

stockholders

approved

new

it

State

voted

Bank

Co., of Sayville, N. Y., for

$50

*

Royal

York

have

and

*

Oystermen's

for

system

Vice-President

pany announced on Jan. 28.
Mr.v
Hird is a Director of the Mutual
& Garment Trades.

banking

Executive

Jan. 14

W.

$8,800,000.

of

on

hundred

S.

the

pany,

Approval

a

com¬

*

bined

Butler

Company

con¬

profits,

upon

total

President

*

*

and
surplus

to

devo¬

benefits,' tne rock
which the bank was founded

have evidenced further interest in

that

other business

*

transfer

undivided

emphasizes the continuing
tion to "home

President of the bank.

sons

identified

cerns.

to

the

Rockefeller, Jr., since first be¬
coming interested in that bank,

he

and

interest

an

He

company.

Eberhard

the
of

Adjusted

capital and surplus of the
bank as of Dec. 31, 1954, it is
stated, would be $7,600,000, and

the

of

intended

an

from

the five Rocke¬

of

outstanding.

the gross proceeds of
sale of the additional shares,

growth of the County and a
desire to set up a County-wide

Heslin

13

(609)

KIDDER, PEABODY & CO.
JONES, KREEGER & HEWITT

36

The Commercial and Financial Chronicle...
14

Thursday, February 3, 1955

(610)

resulted in

The

SEC, Business

The

which
last

is

has

70

years,

last

years.

The

reasons

are

45

more

the
particularly

them

over

is

the

growth

in

course,

I

felt

it

amiss

im¬

the

and

of communications,

means

like.

clock

The

cannot

be turned back to the simple days

the

when

only Federal office¬

that

holders

most

people knew
the postmaster and the mail

were

Let

remember

us

thing,

one

something
is
done in Los Angeles, in Sacra¬
mento, or in Washington, it is
only human beings who do it.
though,

of

my

however, because of the fact
well informed people
have
only vague and nebulous
ideas about what the Securities
that

many

and

is

Commission does.
general idea, for ex¬

a

ample, that the SEC approves or
vouches
for
issues of securities
and

market

stock

the

keeps

more

who

exercises

the

remote

is
administrative
person

the more difficult it is to
keep track of how the power is
being exercised.
The effective¬
power,

administration

of

ness

Washington depends
administrative

from

which

communicates to the Capital what
the problems are out in the coun¬

try, upon the administrative ma¬
chinery which communicates to
the people in the country what
their rights and obligations are,
and

upon

chinery

the administrative

by

formulated
are

local

which
on

the

paper

carried

ma¬

policies

in Washing¬

into effect

This

is

on

the

scene.

fact.

of

SEC

the

interesting

an

sta¬

It is symptomatic of

that

something
in

knowledge

of

functions

than

more

tistical

lack

and

the

about

correction
scheme of
It is a symp¬

needs

complicated

our

Government today.

tom, in part, caused by the com¬
SEC

The

the

on

curities.

laws

the

and

whole

formation

a

ad¬

it

stockholders

in

an

other

security¬

holders; they have

an

impact

on

the

operations

of

day

brokers

-

to

and

-

day

dealers.

Most

busi¬

people have learned to con¬
sider
tax
consequences
before
they enter into a deal. I suggest

ness

All

of

that

people and

involves

AH the law and

ulations

in

the

•An address

luncheon

at

a

lot

of

lot of paper.

a

rules and reg¬

world

mean

very

by Chairman Demmler at
Town Hall, Los
Angeles,

that

is

securities
the

CaL, Jan. 25, 1955.

to

only a slightly lesser de¬
it necessary to look to
consequences
under the Federal
gree

In

laws.

Federal

other

securities

words,

laws

a

aim

have

investor should know
what he is getting into when he

Securities

The

securities.

buys

1933, the so-called "truthin-securities
law"
requires
the
disclosure of information in tne

Federal

,

Telephone Co.

They have worked well both dur¬
ing

period of convalescence and
a period of robust, ener¬

a

Too

time

they

Mortgage Bonds, 4V2 % Series due 1979

be delivered

not

are to

later than June 30, 1955)

$1,500,000
,

General Mortgage 5*/4% Bonds, due October 1, 1964

Dean Witter & Co,
January 27, 1955




terms

at the
in the
against

developed

have

as

popular speculative

a

raising
management of capital.

standards
and

relating
laws

these

But

the

to

not

are

some¬

As

70

when accumulation of
great fortunes and of great indus¬
ago

years

trial

financial

and

by

power

or

is,

tions

market movements.

or

When I say

that the Commission

merits

of

I

pany,

a

security

a

sion's activities

viding
of

national

on

state

(5) The owners of an enterprise
entitled

are

The

tion.

informa¬

current

to

the

under

reports

Se¬

curities Exchange Act of 1934 pro¬

this

vide

the

in

case

listed

of

Financial

information
to investors
with reasonable completeness and
in accordance with generally ac¬
be

persented

cepted accounting principles.

Un¬

Act administered by the

der each

Securities and Exchange Commis¬

Commission is given
prescribe
accounting

the

sion,

to

power

rules.
a

remedy against someone who de¬
him

misrepresentation

by

concealment.

The

Securities

Act of 1933 and the Securities Ex¬

change Act of 1934 in the aggre¬

gate provide for civil
against a
number
of

remedies
types
of

fraud and concealment in the sale
and

purchase of securities.
A stockholder

(8)

chance

sion

Federal

recommended
and

tion

Federal

Commis¬

Industrial
created
by
the
an

Congress
incorpora¬

suggested that corpora¬
be required to pub¬

should

files a registration statement
prospectus covering an offer¬
ing of securities or when its man¬
agement files a proxy statement
for

corporate meeting, that ma¬

a

terial
sion

filed

is

with

sion

chance

a

to

I mention those facts to indicate

first that the type

ulation which

of Federal reg¬
have is not

we now

the exclusive intellectual

the

of

property
and

that

the
was

the point

make

to

suggested

pains of

a

the

growing

the

cure

cantankerous economy
of the century

turn

by listed companies at cor¬
porate meetings for which proxies
solicited.

The

should

be

markets

for securities

free

manipulation.

for

vides

the

of

Exchange Act
regulation of

pro¬
na¬

securities

exchanges.
It
penalties for manipula¬

provides
tive

activity

some

'Controls

provides

and
of

the

for

over-the-

Securities Act of

1934

the

are

istered

statutes

two

tion

should

inside
be

infor¬

allowed

to

of such inside informa¬

use

to

fellow

not

the

disadvantage of their

security-holders, and trans¬

actions between such persons and
the
corporation should be sub¬

jected

to

careful

Securities

scrutiny.

Exchange

Act

oC

The

cor¬

1934

ure

in great meas¬

came

the fact

from

that

the

issuer

underwriter of securities

and

ing sold to the public must
forward
ment

of

and make

be¬

come

public state¬

a

concerning the issuer's busi¬

finances,

its

this

its

and

Commission's

under

stern

statutory

abilities both penal and civil.
Securities

Exchange

Act

in

li¬
The

turn

is

designed to provide a continu¬
ing flow of information to in¬

vestors in listed securities and

curities
tered

which

under

have

the

been

se¬

regis¬

Securities

cessfully

changes.
that

be

to

This type of administrative pro¬
cedure—the comment,

tions,
rise

the

belief

that

with

accord

represents

financial

American
an

in

tradition.

application to the

markets

the

of

principle:

basic

"Give

the

Think

of

the

staff

required

to

the-spot

audit

the

tells

giving

tion

ing

is

responsibility

investor

SEC

As

to

and

the

Securities

market

curities, whether
in

the

on

over-the-counter

rather

than

in

ing controls

the

out

public.

the

I

must

conclusions

also

which

se¬

mar¬

of

terms

prescrib¬

price movements

on

such.

as

It

has

certain

by

the

The

inspection

Federal

tive

market

pose

some

Board.

and

manipula¬

activities

power over

curities

fix

powers

criminal
man

not

has

administrative

for unlawful

and

margin

That is done

Reserve

fraudulent

recommend

on

it does

Commission

and

to

penalties

to
im¬
or

prosecutions

pulation.

It has

the rules of

se¬

exchanges.

Summarizing, and greatly over¬
simplifying,
the
Commission's

lative

point

of

exchange

an

ket, the Commission's powers are
granted in terms of defining and
restricting unlawful activities

and to prevent

protect

Prices

price

basic function is that of

When I point out that disclosure

informa¬

basically L at of the issu¬

which the Federal securities laws

'

a

its

or

company.

The

or

which

facts

The

the

on-

examina¬

of

about itself

management.
for

would be

detailed

a

type

check

to

company

that

make

of facts is the basic technique by

people the facts and let them de¬

hard

a

define

is

pro¬

That

is

off, but if you stop to think
minute, it is not sensible to
suppose
that any agency could
have a detailed knowledge of the
facts about a particular business.
for

certain

technique

a

to kill

but

protective

in

misunderstanding

requirements

basic

Com¬

statement.

those requirements.

the

given

the

mission does pass on the merits of
securities or vouches for the ac¬

profits made by officers, directors
and controlling stockholders.
People engaged in busi¬
involving recommendation

the sugges¬

discussion—has

the

to

tectiop of the investor before he
makes his investment, and the Se¬
curities
Exchange Act provides

as

ele¬

alternative would be unthinkable.

curities Act is directed to the pro-

of disclosure

the

resort im¬

mediately to injunctions and stopthing. That

powers

This concept

alterna¬

procedure

orders and that sort of

cide for themselves."

(11)

of

eliminate

companies subject to the Holding
Company Act, for corporate re¬
capture
of
short-swing* trading

nesses

The

kind

enforcement

protections to the investor

ex¬

suc¬

and amicably, to work
issuing company ap¬

to

would

Act.

after he has made his investment.

finds

staff

out with the

securities,

proposed offering, and all

American

companies

the

tion

Disclosure

The good result produced by the

the

listed

have

applicability to

The Concept of

It

of

of

admin¬

which

Commission

the
Public
Utility Holding
Company Act of 1935 provide, in
and

case

and

Act

by the Securities and Ex¬

broadest

the

1933

Exchange

Thus, generally speaking, the Se¬

People with

mation

If

something to which it takes
ception, it tries, in most cases

public

ness,

The Securities

mission's rules.

moribund economy

Securities

an

re¬

quirements of law and the Com¬

proxy

The

the

to

information

the

or

the

its face

on

conforms

or

Securiiies Act

upon

to whether

as

material

of

vide, in the case of listed com¬
panies, for information as to man¬
agement's stewardship and for an
explanation of matters to be acted

vote

truths

Basically,

curacy

intelligently at
corporate meetings—not blindly.
The Securities Exchange Act and
the proxy rules thereunder pro¬

to

half

review of material is limited to

spectus

was

help cure the
of the 1930's.

it

information,
whether it presents material in a
misleading manner, whether it

in fact prescribed to

near

porate business generally.

a

sec¬

kind of medicine which

to

ond,

N'ew Deal

early

whether

see

contains the required

ment of discussion ar.d

reports to their stockholders.

to the

to give the Commis¬

as

so

tive

capital and to furnish financial

Commis¬

the

before it is circulated

propriate

of

com¬

a

and

and their

promoters in the raising

with

company

pany

lish information about themselves

change

should have

in

of

and

In the early part of the

century

same

The investor should have

companies

of

commerce

licensing.

tions

companies.
should

poration

review

material

in

When

Commission.

inter¬

companies listed
exchanges.

by

securities

limited to pro¬

are

made

by the issuing

the

com¬

a

administrative

an

statements

filed

or

the Commis¬

that

mean

the

of Federal

discussions

ous

respon¬

investment

in the trading markets.
the Securities and Ex¬
change Commission does not have
power to impose any Overall eco¬
nomic controls on price fluctua¬
ing

That

inquiry

provides for periodic reports

own

particular security at a particular
price. Second, the Securities and
Exchange Commission does not
either fix or control prices of se¬
curities whether on original offer¬

incor¬

1934

or

security.

a

judgment whether he will buy a

public

fact, almost

of

matter

a

a

as

bill.

reform

short-lived

or

measure

recovery

rary

approve

an

obvious

make

($2,000,000 of these bonds have been delivered and $2,000,000

the

of

in

laws

enacted
direc.ed

were

which

result of

s

form

to

untruths.

(10)

First

think

us

were

They

abuses
a

of

securities

conditions existing

the

of

fact.

does not approve or pass upon the

many

Federal

not

investor

the

sibility

during

and

counter market.

$4,000,000

I

were

is

It

does

contains

tional

Southern Nevada

to

that

the merits of

obvious

(9)

appears as a matter of record only.
These
placed privately through the undersigned
and no public offering is being made.
were

which

statutes

passed in a period when our na¬
tional
economy
was
unhealthy.

and the

securities

Act.

referred

from

prescribes comparatively few stimulated con¬
standards
for such
information. troversy and demand for more
The Securities Exchange Act of Federal control, there were seri¬
securities

of

sale

are

This advertisement

tne

briefly

have

achieve

to

The

(4)

or

se¬

Exchange Act and

thing designed either as a tempo¬

capital

securities;

and

mention

me

them.

of

They have

trading

laws

securities

ceived

process

Let

few of them and indicate how the

impact

through the sale of

tne

orgy and abuses resulting from
other things that •insufficiently
developed
legal

are

want also.

heavy

impact on
they
have an impact on the duties of
management
of
corporations to

all

there

But

(7)

have

no

lation of capital.

we

by

Statutes Have Worked Well
The

30's.

foolish mean¬
ingless obstacles to the accumu¬
We want

(3)

plexity itself.
ministers

potential

velop the full economic
an
enterprise.

(6)

misunder¬

widespread

standing

the

upon

machinery

ideas is correct.

of these

in¬
de¬

to

of

Exchange

There

whether

The

a

introduction to
remarks —

long

a

subject

imagination

and

Act of

the picture.

into

fit

steady. As I shall explain, neither

man.

ton

indicate

I

way,

«-"efc «. n^,

ex-

pansion,
proved

consider

"SEC, Business and the Investor."
I
introduced
my
remarks that

in-

—

is

That

the

tech¬

dust rial

if

administer

problems
created by

the

not

static

are

(2) We want opportunity for

just where
Commission and the laws we

our

is

the series of

nology

would

you

vault

a

advisers

getic health.

itiative

system
is for that reason that

It

work.

in

wealth.

is really
the public

make

to

we

We want to encourage in¬

jewelry

that

protect

to

and

interest

populat i o n,
and
strength
of
the
country.

modern

understanding

necessary

we
desire?
seek to pre¬

do

do

abuses

tnings

broker-dealers

of

Investment Advisers

in

corporation

ends

Commission

the function

at

modern

what

(1)

In more

general way.

a

look

we

the

vestment—money in the mattress,

specialized fields, such as secu¬
rities regulation, the complexity
of the subject matter makes it
hard to maintain the kind of pub¬
lic

size,

Another

in

know

affect

laws

Prevent"

vent?

whom
about

people

the

unless

those

One, of

many.

little

phenomenon

developed

the

over

a

investment

These

drawn

pass upon

publicly available information
required

What

period of

should be regis¬
be required to

themselves.

be

must

First, the Securities and Exchange

should

and

and

tal,

period of energetic health.

complexity of the Federal

Government

file

gathering and administering capi¬

Sums
up the SEC's "basic function" is to enforce adequate dis¬
closure and to prevent unlawful manipulative activity.
a

securities,

are

When

who
gathers together and administers capital furnished others.
convalescence and during

and
tered

others.

of

of things that

Claims SEC laws have worked well both during a

some

about

"The Abuses We Seek to

legal controls imposed on one man

some

be

must

Securities

Commission

States it is inherent in the nature

nature of

the

in

there

investments, sale of securiiies,

controls imposed on one
gathers together and
administers
capital furnished

complicated Federal

calling attention to the enormously

there must be

that

of

handling of other people's money

who

man

Government, Chairman Demmler endeavors to correct "nebu¬
lous ideas" about what the Securiiies and Exchange Commis¬
sion does.

body of

new

legal

DEMMLER*

Chairman, Securities and Exchange

In

inherent

is

It

things

And the Investor
By RALPH II.

whole

a

business jurisprudence.

to

enforce

adequate

agency

disclosure

unlawful manipu¬

activity.

That leaves

play

an

to

the

a

great deal of free

individual

judgment

Volume 181

Number 5400

The Commercial and Financial Chronicle

...

of the investor

so

x>i

concerned, and

securities

far

is

market

as

far

selection

as

active interest in instal¬
financing,
British
banks
confine
themselves
to
ordinary
bank credits to firms engaged in

a

Instalment Credit Inflation

so

is concerned,

price

(611)

the thrust ol the securities laws is
toward

the protection of a
unmanipulated market in

In Britain

free,
secu¬

rities.

By PAUL EINZIG

I have

day

what the

you

Commission does not do

what it

you

tions

with

many

that

have

vast

over

convinced

me

business

of

number

people think
to the

to tell

as

Conversa¬

people

many

years
a

do.

does

and mumbo jumbo.
know, for example, that Small

Business

Administration

applications

many

sound businesses

gets

from

LONDON, Eng.—The system of

good

credits

is

coming into

limelight in Britain.

restrictions

imposed

which should be

Since the

in

1951-52

were

removed

seeking equity capital in trie puolic
capital
market
rather
tnan

last

borrowing

business based

There

of
course, many reasons, some good
and some
bad, why the owners of
some
closely
held
enterprises
don't

money.

want

are,

stock

sell

to

to

year,

the

volume

of

such credits

on

has
a

undergone

noteworthy

increase. Even

the
•

public and there
to

minority
closely held

are

enterprises.

theless, part of the
of

success

our

during the

risks

many

investors

public

If i 11

in

restrictions

Never¬

reason

for the

American

system

8k

M

the

methods

are

those

lead

who

of

capital

responsibilities
and

vate enterprise.

great

no

mystery about the Federal
rities laws.
climate

They

in

secu¬

part of the

are a

which

of

pri¬

espouse

There is

American

busi¬

lives.

ness

I

am

grateful

tunity of telling
bit

about

because
what

for

the

you

just

oppor¬

little

a

those

I

we

because I

laws, not only
enjoy
talking
about
are
trying to do, but
have

profound

a

belief

that the broad diffusion of wealth

all over this country and the
gency, if we
maintaining
make

vestors
vest

need

to

of

economy

widely
the pro¬

more

a

knowledge of
capital formation.

of

cesses

survive,

strong

necessary

diffused

to

are

a

ur¬

know

how

In¬
in¬

to

intelligently; business people

need

know

to

methods

of

the

alternative

raising needed

capi¬

tal.

Once

upon

time

a

the

knowledge

was

concentrated

lar

street

Pacific

not

—

on

that

as

taining

and

economy

who
who

work

we

tinued. Statis¬

are
are

one

near

how

to

the

cars,

commercial

motor

cycles.

vehicles
ment

no

increased
1952

together

extent

with

the

mainly

due

the

pay

fears

entertained

are

is

you

Exchange

withdrew

31.

retired

of

as

Mid

and

As¬

Conti¬

Securities

mem¬

over¬

cause

of the disapproval

of
the expansion
of instalment
selling is that it tends to accentu¬
ate

the inflationary

ing,

to

several

the

to

millions

could

of

crease

existence

of

of

thus

fect

unemployed

demand

consumer

adversely the balance of

One

of

in

which

threats

such

carried out is very

time.

It

is

deterrent

a

reasons, for the strike pay is not
high enough to allow for instal¬
ment

which is due to the gradual adop¬

payments,

and

far

on

instalments is liable

While

the United

in

to

The

Financial

payments."

for

pay¬

in¬

which cost
people,

against

"deferred

it

while

unfortunate

and

is
an¬

result of non-pay¬
instalment, the sellers
as a

of

M.

ANG.FLES,

Calif.—Harry

Brandel, Jr. and Mortimer C.

Smith have become affiliated with
Merrill

Lynch, Pierce, Fenner

Beane, 523 West Sixth Street.




&

in¬

buying comes under the
heading of "consumer credits," in
Britain such a designation would
not be correct.
For a very large
proportion of the goods sold on
instalment payments is bought not
by consumers but by producers
Much

of

the

possession

bought

such

on

of

the

terms,

goods

is

it

ing

as bringing dis¬
defaulting buyer.
is indicated by the follow¬

instance

wide
ness

the

to

which

circulation

Britain

yet customary to em¬
for goods other

as

ploy

the

than

durables

The

recent

if

semi-durables.

and

announcement

pable.

by

in

duction in the supply of credit, it
would lead to

ject to much criticism in quarters
in favor of

are

aplied

durable

to

durable

the

would

system
semi-

and

banks

goods.

in

system

Britain

States

is

television

has

gained

British

London

suburbs
set

got

instalment

from

that

as

in

and

it

your

you

we

compelled
of

our

television

a

stalment

into

seller

American

could check

commercial banks have long taken

has

Hooker

gomery

the expansion, but it

Street,
and

York

Stock

Exchanges.

Cal.—John

San

in

Agnew & Co.

IMPERIAL MINERALS LIMITED
(No Personal Liability)
Par Value $1.00 Per Share

The

Company is interested in two separate

in

QUEBEC

to
We

set.

us

television set?"

*

.

.

claims

Mining

*

*

of properties:

groups

consisting of

approximately 832

LAKE

.

.

.

Approximately

600

acres

in

Nelligan

Township,

The
claims

intention
then

Company

primarily
of

the

has

seeking

been

and

copper

Company to

is

exploring

deposits

of

a

and

diamond

drilling

commercial grade.

first complete exploration in the

It

Matapedia

its

is

the present

Matapedia

explore and diamond drill the Bachelor Lake claims.

Offering Price: 36c

I

per

Share

of

the offering

circular

may

be

obtained from

the

He

underwriter below:

Milton D. Blauner & Co., Inc.

fol¬

115

New York 6, N. Y.

Broadway

BArclay 7-7626
Gentlemen:

Please mail me the offering circular

relating to Imperial Minerals Limited.

recover
are

sure

Name

—

to do that.

The firm re¬

following reply: "Dear

Province

of Quebec.

arrears

the

acres

Matapedia Township, Bonaventure County.

BACHELOR

City

Zone

State

associated

area

Francises

Mr. Eidell

partner

a

Fay

Fay, 221 Mont¬
members of the

830,000 Common Shares

MATAPEDIA,

the

Chronicle)

become
&

New

formerly

would not be practical politics.

The Financial

FRANCISCO,

Eidell

with

the

by

to

of

shall be reluc¬
to
avail our¬

right

will not force

ceived the

SAN

G.

theory they

In

system.

of

record

Hooker &
(Special

buyers and sellers under the in¬

United

the

impressive and the
is experi¬
progressive and very ca¬

lower

buyer

What would your neighbors think
if
they saw our van collecting
your

given

year

is

op¬

monetary author¬

lead

each

management

busi¬

payments.

the

,

the

and

expansionary

operates

the

while

letter: "Dear Sir, Unless
pay the overdue instalments

by next week

utmost

The position is that the

ities have to follow reluctantly the

Another difference between the

instalment

the

stock

John Eidoll Joins

unemployment and

encounter

position.

o£

re¬

ment

Copies

the

of

one

substantial

a

cur¬

free

is

Personal

that

condition

various

Air Lines to accept pay¬
in instalment has been sub¬

feel

I

enced,

accompanied by

39

company's financial and physical

And

a

at

common

deterrent.

as

New

and

since 1902.

higher interest rates should be

would not act

system

the

on

present

two

or

com¬

on the approved list and has been
purchased by Savings Fund Banks
in Pennsylvania and New York
State.
Dividends have been paid

cent

one

earn¬

is

It

per

by

crease

up¬

pay¬

as

Propertylegal for trust in¬
vestment in Pennsylvania and is*

their

represents interest, so that an in¬

circles:

middle-class

of

ufacturers, merchants, etc., is fi¬
nanced by such means. Nor is it in

or

priced

Taxes.

instalment

monthly

weekly

no

longer regarded
grace

much

how

know

even

dividend

Exchange

Pennsylvania

direct

investment of farmers, small man¬

195#

in
the

resume

increased

be

Stock

rently

it

checked, not by restor¬
restrictions, but with
the aid of higher interest rates.
In
reality, most buyers do not

capital

will

York

the

should be

ing

ments

to
and

Philadelphia Electric Co.
stock, listed S on the

Many experts suggest that the
expansion of instalment buying

and small business firms of every

description.

As

trend

mon

is, it is bound to
aggravate the overload that the
British economy has to carry.

stalment

themselves of their right to

recover

selves

LOS

'thirties.

in

welcomed

most

Indeed,

considered

avail

sets,

much

bought

are

tantly

Chronicle)

States

than

more

to be very unpopular in his home.

Earnings

expected

ward

ings warrant.

of the

system, is timed very
unfortunately. It would have been

whose television set is take away
for default

business, its pres¬
expanding fundamental trend,

tion

"Hazel."

cane

re¬

the

of

causes

television

too

you

(Special

worker

any

for

June, 1954r
damage done by Hurri¬

the

are

instalment

ent

con¬

$300 million to meet

over

needs

and

fluctuations

of

a

ditional stock issued in

altogether

apart

inevitable

strikes undertaken for inadequate

weakening. It is
accepted thing that

an

And

the

from

lowing

Merrill Lynch Adds Two

demand.

against

from

Additional

power in the ex¬
panding "Delaware Valley" will
permit considerable savings from
increased efficiency.
Earnings as
figured by the company are ex¬
pected to be slightly under the
1953 figure of $2.36 due to the ad¬

make
the
country much
have to be would
more vulnerable to slumps, since
small. The ob¬
the sharp contraction of buying
ligation to pay instalments pro-,
vides a strong incitement for in¬ on instalment payments would ag¬
the
dustrial workers to work over¬ gravate the general fall in
in

benefit

to

factors.

of

cost of

the

Critics of the system argue that
extensive adoption in Britain

is

debt

quite

a

its

the number of instances

being
major in¬
served.

struction in the next five years afc

in

is

from

one

production units planned for

banks.

is that prejudice against be¬

ness

received

10.

the

commercial

area

expected

are

he

there

financing
hands of the

any

operations and earning:*

number

the

of

instalment

trick."

mean

a

In fact,

Future

who

when

half

about

freedom
on

dustry in the

as

the

creasing trend of instalment busi¬

with

by the

would be

that

derived from residential

sales, plus
dependent

visit to the United

a

astonished

was

told

Secuify

revenues

States.

banker

2

page

be

ments.

a

considered

out
can

all of

them, and it
is their unanimous opinion that it

undertone of

expand instalment sell¬

owing

Brown

Exchange Feb.

well

consulted

now

if

bership of Edwin Ehlert to Barrett
be

States
was

The main

In

Exchange

your question as
neighbors' attitude towards
of my television set
for non-payment of arrears, I have
removal

United

leading British

paid recently

the

which

Corp. Feb. 1.

will

is

operates in the

One

Sirs, In reply to

whelming majority of purchasers.

This

Transfer of the

The
the

increase of prices which would af¬

partnership in Lamson Bros.

Investment

and
the

of

means

to

such

today.

instalments

the

many

able

No

prosperous,

of

payment

ing

Lindeke

Secretary

be

instalments.

country
within

that

not

was

the

Irving Feig retired from Kauf¬
Alsberg & Co., Jan. 31.

sistant

fears

to

purchasers would

opposition

existed

as

you

man,

nent

system

concern.

such

war

system

ment

H. Riccio

the

view the develop¬

growing

Before the
to

changes:

Mary

which

nancial editors
ment

noying if,

Jan.

to

Any substantial in¬

is about.

Stock

is

has increased in the United States.
Even so, British bankers and fi¬

has announced the following firm

Co.

There

comparison with the spectacu¬

lar

most

&

threefold

1954.

sulting from the popularization of
instalment selling would cause an

main¬

Exchange
Weekly Firm Changes

from

about

and

pay¬

employment.

in

W.

instalment

on

Britain there

will agree

you

it

in U. S.

as

from

I Like Best

instalment finance company

an

to my

and

The number of such

sold

between

vehicles

grow,

or popu¬

New York Stock

Albert

con¬

fined to motor

now

,

is

absorbed, in
is already overfull-

this

The New York

tion

Dr. Paul iiinzig

who

great land,
in private
business,

us

informa¬

needs

education, you who
are
in
the
professions, and we
who
are
in
Government, must
have some understanding of what
each of

tical

afford

subject
particu¬

strengthening

of

con¬

this

whether in capital assets

lation, but I know

increasing

trend

the
economy.
It is pointed
that, while the United States

California
in

force

too much of

located

Ocean.

instructions

no

on

in

were

the

capital. Understanding of the sys¬
tem of capital
formation, under¬
formation

pe¬

riod while the
'

of private enterprise has been the
continued infusion of new equity

standing

consumers,

The

ing circles, and the example is not
likely to be followed by any of
the big English banks. Neverthe¬
less, it has aroused the interest

buying in Britain is by producers and small

by

Continued

two

of British banks in the system

instalment
the

When

much of instalment

business concerns, and not

black amagic
I

the Commerical Bank
acquired the control

it caused surprise in British bank¬

much

as so

business.

months ago
of Scotland

Commenting on substantial increase in instalment credit in
Britain, Dr. Einzig says it is causing some alarm because of
its inflationary effects.
Says cause of instalment buying to
the weakening prejudice against being in debt, but points out

of the laws relating

capital markets

instalment

of

into this detail to-'

gone

much to tell

as

very

ment

15

and

was

ShumaDj.

16

The Commercial and Financial Chronicle...

(612)

Thursday, February 3, 1955

ed the

general popularity for tinued its disappointing ways backing were at
for the most, usually sagging, tially successful.
plane makers.
*
*
*
4=
while duPont was
#
*
showing

THE MARKET... AND YOU

mild

Popular Steels

STREETE

By WALLACE

.

The

industrial

which

age,

high peak

stock

set

an

Steels also exhibited

A War Market

aver-

all-time

The

defense

an

en¬

during popularity as well as
capacity to offer new
candidates for leadership

strength - so the group
most times presented a mixed
picture.
*

*

issues

were

into

tests

half,

of the stormiest

nearly

a

bettered

reading

the

a

historic

off

start

to

and

year

a

new

month this week.
*

achievement

had

its

faults. Not

only did the rails
fail to
accompany the indu%>
trials, but even gave ground
when

the

industrials

were

forging ahead. Moreover, the
rail

index

any

threat to

at its

far

is

It

from

its

1955

being
peak

present standing.
*

is

*

*

odd

an

achievement

for the month that in recent
years has been the most dour
of them
all.
But this year
could be different. The perof

sistence

dreary trading in
February in past years has
been largely because of the
of the

imminence

tax

income

payment date. This year that
date is

later

month

a

the

so

pattern might be in for some
revision.

Continuing Stock Splits
Stock

have

and

been

what

the

candidates

take

over

newer

section

paused,

the

forefront

the

reins.

One

of time,

items in this lime-

couldn't quite improve on its
high in that move but certainly qualifies as capable of
joining the chronic sprinters
as

from

was

a

liet

rebound of

sev-

improvement
tame

five

and

similar

on the day
compared with the

six

point

jumps

sponsored else-

news

where.

were a bit on the

issue

that

times

was

sharp

in such diverse

runup

shares

Visking Corp., Kop-

as

Ward

laggard. ments
of its Chairman.

there

that

assertions

is

of

Easiness

to

rumors

was

choose from in

the

no

merger interest in any such
combination. Nevertheless,
every

outburst in WU usually
Telautograph perking

simultaneously

the
twin
act
was
among
this
Another newly listed issue
week's features again. West¬
that also helped the aircrafts
ern
Union was able to push
retain their
market leaderits best price in years close to
ship was chance Vought, a
the par mark, which is a good
United
Aircraft
spin-off of
achievement after all the pit¬
last year. The issue) which,
falls
the stock has had to
held in a 16-point range last
hurdle in the last couple of
yearj recently achieveda
decades. But the stock belies
100% appreciation over its
the story of prices generally
low of 22, and raced to the
"highest in history," since the
50 mark on two fat gaining

stock.

^

*

up

*

^

books

still

and

list

al¬

an

was an-

Cement

*

Boat

issue

that

the

Cement,

Berle successfully

functioning

conscience

guided

of

thesis.

drawn from and

of

which

did

vote

"In

practice,

institutional

corporations

are

These in turn

are

judged by the group opinion of

America—its

business

small fragment

a

financial

and

community.
Change of
stockholders' votes is extremely
rare, and increasingly difficult and expensive to the point of im¬
possibility. The legal presumption in favor of management, and

management

by

contesting

for

the natural unwillingness of courts to control or reverse manage¬
ments

action

in

save

of the

cases

elementary types of dis¬

more

fraud, leaves management with substantially absolute

or

Thus the

only real control whidh guides

or

limits

their

economic and social action is the real, though undefined and

in

as

the chances

are

Whether

other

compose

of

areas

written

layman

and

them."

a

tacit,

[italics ours.]

the capitalist

acquisition of

revolution, salvation

soul. Mr. Berle

seems

to think

good.

eliciting agreement

liatntly

even

who

men

lies in the corporate

reflections,

as

disagreement, Mr. Berle's bril-

or

always,

should be

read

by

both

expert, for important clarification, stimulation, and

inspiration.
*

*

♦

*

*

MURDER SOLUTION
"Who

instigated the slaying-of-Serge?"

Rubinstein

a

name

ties in his long-time skepticism about
management with his appeal-to-

company

by tiny self-perpetuating obligarchies.

Here

had

former

our

Corporate Soul the Solution
Mr.

*

that

.

his statement," is the objective conclusion voiced by

philosophy of the

shares

5

page

F. D. R. Brains Truster.

power.

and ac- stock
division, at times was a
quired Consolidated Vultee.
resounding loser in the group,
In addition to the solid ro- so the
argument isn't entirely
mance attached to the builder valid.
Hs
*
*
of the nation's first atomicpowered submarine was addits

up

as
on

jrom

Observations..

honesty

impossible peak of 272
the most optimistic price
record
for WU, a
1929
*

Electric

Continued

most

achievement.

^

General Dynamics

points from the low, the changed

was

help of any apparent de¬

wild side. These included the

Ward Erratic

signs

Armstrong Cork all other of the air-defense group
virtually ignored market
joining the stock split move- that did its work well, but troubles most of last
year
ment this week, and the mar- then in midweek turned
to started to show on the casu¬
ket
dutifully reflecting
it. the sidelines. This issue exalty side occasionally. Part of
The Ohio Oil one was a bit ceeded its 1946 all-time high
the blame for this condition
more
unexpected than the in 1952 at around 45, and was that stock
split hopes had
rest and the news broke at a worked up to 80 last year,
been
high here, too, while
time when the stock was lag- This week it broke par with
company action has been
ging on the day. Hence, while a vengeance. It is the former slow.
But
Alpha
Portland
a

in in¬

without

pers
Co., American Metal,
which
Ltd., and Ex-Cell-O, and even
one
way
and the
in such stalwarts as Alumi¬
tune with develop¬
num Co. Traders had a
variety
that
swirled
around

Steel and

eral

situations

velopments

Republic Montgomery

showed

Bethlehem

finds

result,

a

*

Honeywell, Ohio Oil, Armco

it showed

He

moves

brokerage offices as these
light was Rohr Aircraft which settling down again after the induced when the largest in¬
spirited
upsurges took place,
vestment
has had a rather tame life in gyrations produced last week
company
reported
but there wasn't much
when hopes of a split were publicly that it had switched
tangi¬
a brief career of listed tradble about any of them.
dashed.
from Montgomery
to Sears
ing. It held in a neat 10-point
*
*
*
[The vieuis expressed in this
because of disapproval of the
range in the four months it
article do not necessarily at
Western Union and Telau¬ management
any
has been listed, but was able
policies. But the
time coincide with those of the
in one day to cover half that tograph continue to put on issue firmed up as attempts Chronicle. They are
presented as
an act
every once in a while of
insurgents to get court those of the author only.]
distance in even less than a
full trading session. It despite recent Western Union

a

as

and

par¬

plenty of other Steel, around which hopes of swayed
around ready to a split have revolved for some other in

record

obliging nicely,
Minneapolis

with

this
were

sessions with successive four
con- an(^
five-point gains getting
companies rather commonplace for the

splits continue
prime aid for the bullish

tingent

there

the

*

The

jn

ers

the

*

on

some

in

special

dividual

the

the first trading a}so jn sustained demand and when
the
old
ones
tired.
An
individual
session of last month,
only to when one or two of the lead- Armco's split propelled it to had its erratic
run

Some

least

himself,

course—successfully

of

himself the very widest coverage

attaining

in the annals of amateur

unto
press-

agentry.

A JOURNALIST OF INTEGRITY—IN MEMORIAM

Jersey Brightens the Oils

Robert P.

Standard Oil of New
was

a

AN OIL MAN'S OIL STOCK."

GULF COAST LEASEHOLDS, ING.

able to make the oil

tion

look

tion

for

We

a

report

Copies available

on

on

the Company.

request.

LEASON & CO., Inc.
SOUTH

a

this

action

same—hopes of
of

some

a

was

kind. But gen¬

erally the oils had a rather
haphazard pattern with the

sprinting issues all too willing
give back their gains sub¬
sequently. Anderson-Prichard
was a dour feature
by putting
a
couple of sizable losses to¬
gether and the interest in the
Sunray-Mid-Continent Petro¬

LA

SALLE

CHICAGO

STREET

3

leum

merger, one

ory

Vanderpoel left this world last week. But the mem¬
of his vigorous and fearless integrity will never leave us.
After

out as a teacher of economics and English,
financial editor of the Chicago "Herald American"
and financial columnist for the Chicago "SunTimes," really continued his service as a
teacher in the highest sense.
His death is




a

loss to the entire newspaper

professionals.

and

He

inflexibly

independent in thought and
conviction, calling his shots as he found them
on
both the Right and the Left; unceasingly
inquiring, and direct. He meant what he said,
accompanied
by the
invaluable faculty of
being able to say what he meant — without

was

confusing economic journalese.
Typically, to a mutual colleague, Joseph
A. Livingston, Financial Editor of the Phila¬
delphia "Evening Bulletin," Vanderpoel re¬
cently sent this note expressing skepticism
about

the

blithe

economic

spirit of the New

the larger

ficult for anyone to be other than optimistic?

ernment,

away.

sales; and if
*

P.

Vanderpoel

"Isn't it true, that at a time such as the present, it is very dif¬

apparently had all oozed

Chemicals

R.

Year:—

oil combines in recent
years,

*

Teletype CG 982

as

community—readers

pessimism
you

loses

are

a

if

votes;

newspaper

you

man,

I

If you are in gov¬
in business,

are

it loses

fear it loses readers.

*

And

Telephone STate 2-6001

starting

Vanderpoel,

the

stock pay¬

to

have prepared

39

sec¬

little

brighter at
times
by featuring on
strength. The best explana¬

ment

COMMON STOCK

Jersey

weren't

able

to

show any universal
strength,
either. Allied Chemical con¬

so

occurs

we

to

build

knock

wonder how

we

up

the

more
props

and

more

from

could have been

optimism

under

so

the

foolish.

until something

boom

and

then

we

Best wishes for 1955."

-Number 5400

Volume 181

..The Commercial and Financial Chronicle

.

(613) f17

Controllers Warned
Peter

Securities Salesman's Corner

new

Some

Excerpts from the
Writings and Speeches of
Henry L. Doherty in the
Years 1912 and 1913.

ment
vs.

Col¬

loss

by Mr. C. J. Stubner,
Resident Partner of Stub¬

you

lected

&

ner

Bldg.,

Co.,

Union

Trust

Pittsburgh 19, Pa.,
of
Pittsburgh
Exchange.

Members
Stock

Mr. Stubner who spent the first
15

of his

years

vestment

the in¬

in

career

business

(1915-1930) in
Henry L. Doherty
regards Mr. Doherty as the great¬
the

service

of

est leader of business in

his time.

He states that the Doherty organ¬
ization was run with a degree of

cooperation that
out

almost with¬

was

A

arrogance.

remarkable

spirit based

2%

at

interest for 40

40

If

inter¬

have no
subsequent to the first year
could at the end of the first
years.

investment

of your original
7l/z% and the bal¬

at

ance

of it would

earn

you as

and

had

the

taking the
rate

of

the

is

in

warranted

chance

the higher

on

We

return.

Now

down to this,

comes

man

a

2%,

at

it

of

whatever.

less

question

had in¬

you

as

whole

no

whether

be sufficient to

much

the

vested

you

95%

lose

year

believe

that

safety of investment depends

primarily

discrimination. If

upon

investor is not in

an

years

at Pk%

investment

an

est for

position to

a

discriminate keenly the next thing
to

is

do

choose

to

business that
and then

the

the average of all

has to invest his money at 2%

nical

4%

Although

herty has been dead
Mr.

Stubner

Mr.

some

states,

Do¬

years,

"Those

labored in his service will

who

remem¬

ber him

as a man of
unique per¬
sonality and gifts, and the Cities
Service Company which he found¬

is

ed

an

enduring monument

to

his creative ability and solid vir¬
tues."
How To Make A Man

Mr.

Doherty

Save

believed

that

known

the

as

investment

banking house of Henry L. Do¬
herty and Company, should have
as its primary function that of do¬
ing business with the wage earn¬
the

of

ers

when

man

a

or

while

er

to

but

save

shrewd

makes
not

he

You

tell

to

try

higher

a

only learns

learns

investor.

to

were

he

if

return he

rate of

be

to

know

a

if

I

what

you

I

thought

was

of

of the big fortunes in this

some

the secret of

success

that

could

not

except

it

I

for

it

see

is

the

accumulate money,

determination

desire

that it

to

the

was

accumulate

to

rather than the

suc¬

ability,* rather

than the knowledge."
And

them

to

have

their

and

would

mously to have the fund invested.

true

He

would

recalls
show

to

if

it

this

what

could

invested

incident—"I
investment

be

made

to

tried

meant,

earn

sonable rates of return.

that

teach

what I termed natural
periods of time, one period being
the proverbial life of a man, three

place

and ten.

score

40

man

a

work when he is 20 and is

itated
and

for

the

from

as

being the working life
assuming that he goes to

years,

of

The other I took

work

other

birth

when

being

until

a

incapac¬

he

the

man

reaches

as

in

if

in

us

Peter

Guy

tified

at

the New York

at

tel

op

supposed
and

Peter

Guy

"The

1.

to

be

Evans

law

new

underlying
system

there

have

the

I

know

of

that there

people

many

today."

are

our

in¬

hands

few

sure
as

universities

and
there

where

to

teach
is no

you

can

the science of money get¬
and up to date the money
getter
has
been
primarily the

learn

ting;

who started out with the in¬

man

tention of

basic

of

our

changed

terially," Mr. Evans said.

ma¬

"Rates

exemption al¬

or

tered.
However, with
enlarged
deductions, a little relief and ben¬
efit

was

Psychologically,
was improved."

the

climate

tax

encouraged

was

to

spend, to buy and to invest. New
machines,
equipment
and
con¬
struction can be quickly written
off under accelerated or quickie
methods.

dends

is

encouraging

now

can

as

credit

the

has

to

Basically,

is

simplified.

be

old

The

tested

and

the

new

tax

How¬

law has

reinforced

"If

you

want

you

have

do.
a

I

once

young

lar
to

to

told

make

to

can
a

a

him

group that when

of 30 spends

man

man

impress

make the money

dol¬

a

he was spending what ought
$10 (compounded at 6%) when

he

is

70.

One

young

man

said,

with

Therefore, wher¬

provisions use sim¬

'Gee, I took my wife to the the¬
atre last night and spent
$4.
I
I

guess

spent

been $40 in

what

would

have

old age, after lis¬
tening to you.' I told him that he
was right and we all had
a good
my

on

NOTE:

More

This

is

not

an

offer

to

laugh but I think the point
have gotten home."

may

Hess &

HOUSTON, Tex. — Fridley &
Hess, First National Bank Build¬
ing, announce the change of their

ers

rate

of

rather
course

the

interest

seems

inconsequential,

perhaps
in
the

of 20 years the accretion to

original

dollar by

process

of

Mr.

Doherty

believed

that

"A

majority of investors in this coun¬
try have sacrificed too much for
the

general

sake

of

safety."

He




argued,

NEW

all

period
while

income
the

profits
due

in

market

and

Texas

double

municipal

in

as

1954,"

tax

law.

pertains

for estimated

The

to

firm

of

William

Stock

Exchange,

on

Feb.

ship.

Mr.

Alford

ciated with the

has

expenses.

West

Monroe

has

a

trustee

of

eral and

lege

Clarkson

broad, the Commissioner
in his proposed Regulations has
attempted to narrow the scope

n

and purpose

H i

strict

ment

of the section by his
interpretation thereof.

Mr. Evans urged the Controllers

rn o

d

data, views and argu¬
ments, pertaining thereto, in writ¬
ing, to the Commissioner of In¬
Revenue

consideration

before Feb.

only

can

23

amounts of certain kinds
ness

which

expenses
on

can

corporation

a

where

turn

an

such

the

increases

462

Section

"election

expenses"

stepped

so

A

former

Secretary
Burden

was

tax

re¬

degree

of

to

in¬

Clarkson

He

the Air Force, Mr.
granted the honorary
doctor of science by

College

with

in

Richard May to Join

Oppenheimer & Go.
Richard May will be come asso¬

amount

The

reduction

of

ciated

in

with

Broad

taxes

represents actual cash sav¬
ing and increase in working capi¬

25

members

tal.

Exchange.

However, you must take in¬
to account all the consequences of

company's

elections

to

se¬

officer
many

of

Oppenheimer & Co,,
Street, New York City,

of the New

F.

or

solicitation of

an

solicitation is made

years.

offer to buy, the securities described below.

only by the Prospectus.

200,000 Shares of Common Stock

Offered in attached units of One share of Preferred Stock (annual

preferred dividend 30£

per

share) and One share of Common Stock.

Offering Price $5.50 Per Unit
Orders executed

Seligmann & Company, 735 North
Street. He was previously
with Bache & Co. and prior there¬

by, and Prospectus obtainable from,

Aetna Securities Corporation
III

to

with

Lon

L.

Grier

A. C. Allyn & Co.

&

Co.

and

January 31, 1955

BROADWAY

NEW YORK 6, N. Y.

York

Stock

has been an
Bleibtreu, Inc. for

Mr. May

$1.00 Per Share)

Water

1953.

elor of arts, cum laude.

Joins Seligmann Staff
Wis.—Glenn C.
joined the staff of

June,

from Harvard
of bach¬

the degree

time.

has

for

assistant

be
earlier

bills.

or

-

development to the

graduated

was

1927

ductions, corporations can increase

dispose of,

r

can

With

your

A i

of

de¬

been

special

and

be

will be substantially larger.
the new approach to de¬

years

the

of

ident of Trans

Burden

M.

research

pointed out, that de¬
depreciation
up
that the

t

by
Da¬

Presi-

n,

e n

World

made.

for

S.

lines.

in

Mr. Evans

A.

Wm.

of busi¬

has

an¬

tees and Pres¬

as

presentations if made within
days of publication date."

was

Board ofTrus-

given

be

at

appoint¬

s

Ralph

their

ternal

o1o g y

nounced

"to study the new proposed Reg¬
ulations immediately and to sub¬
mit

Col¬

Tech-

of

Potsdam, N.Y.

asso¬

MILWAUKEE,

been

elected

10, will

been

M.

Co.,

Although the language of Sectin 462, providing for reserves for
estimated expenses, is rather gen¬

200,000 Shares of Cumulative Preferred Stock

Chicago office, 111
Street, for some

A.

Burden &

re¬

CHICAGO, 111.—Dean Witter &
Co., members of the New York
admit Lore W. Alford to partner¬

con¬

Burden Named Trustee

Bowl-Mor Company,inc.

cumulative

he

William

Dean Witter Co. To
Admit Lore W. Alford

excess

and
opportunities
to
again certain types of

up

local

and

low

very

the

years
may
be high,
decreasing amounts of de¬

to

preciation

of Jan.

be

may

income

tax

ISSUE

(Par Value

a

Because of the greater de¬

(Par Value 10$ Per Share)

Petersen
Even As Now

Fridley, Hess &
The firm acts as un¬

bonds.

compounding is 467% more at the
higher rate, 805% greater in 40
years
and 2100% greater in 70
years."

in

the

to

derwriters, distributors and deal¬

ly

comes $3.29, $10.83 and $64.64 re¬
spectively.
It will be seen that
although the difference in the

name

Frederking.

"A dollar compounded quarter¬

for 20 years at 2% becomes
$1.49; for 40 years $2.22, and for
70 years $4.01.
But at 6% it be¬

Fridley,
Frederking

and

war

Tax, 1954 may
important base period

next

New Firm Name

securities

another

Mr.

Doherty's philos¬
ophy and beliefs.

firm

new

important

serves

Such offer

save,

be

have

we

ductions claimed in 1954, the base

deductions and decrease their tax

the age of 21."

with what he

for

stocks.

old tax low was

Court decisions.
ever

tax

most of the time, simplicity

illusory.

been

buy

our

supposed to

attractive

it

made

individuals

ever,

dividend

limited

he

vestment

the

of

more

ductions

will benefit be¬
financing is easier

Tax?"

tions

to

Corporations

Profits

A.
M. Burden, senior
partner in the New York City in¬

crease

now

differ¬

the

split with more certainty
of the end tax results, investiga¬
tions of mergers are olso bound
follow, he predicted.

he

Excess Profits

year.

1955, the

ducted

corporations

wrong,"

Commissioner pub¬
long-awaited proposed
Regulations, interpreting two sec¬

30

investigate the stock

equity

tax

new

"If
new

expenses

individuals

merge or

cause

in

Excess

cluded.

to

on

market boom.

Since

income

another

tax

divi¬

"break"

The

were

queried.

ences

doled out here and there.

Everyone

Commis¬

good many

a

you

getting it."

EDITOR'S
week

tax laws.

our

structure

was

weren't lowered

is

simplification

a

codification of

a

have

lished

the

Feb.

figured

24,

Din-

Meeting

held

sioner

the-

In the Federal Register

Controllers'

n e r

and

between the two and bring
accounting into closer harmany with business accounting.

Public

Institute

determinations.

Accountants

law eliminate

Cer¬

Accountant

income

to

between

Several sections of the

Attor¬

and

ney

attempts

In the past, busi¬
ness accounting
always yielded to
tax accounting.

Evans, New
York

law

differences

different ways.

declared

war,

tax

new

"Furthermore, Formosa is con¬
fronting us, and should it prove
explosive, won't Congress enact

causes

or

new

the

warned.

words,
their
interpretation will be
revealed in the litigated cases.
The

under

Your interpretations of
features may prove very
if
subsequent
litigation

proves

different

or

meaning

business

For-

involve

pler

Formosa

new

costly

profits tax.

excess

iron out the

should

m o s a

Whether that is

am

about

am

eventually it

engineering
everything else but

is

60,
period

back

be

"We

that

have it.

not, I

or

I took in

think

be

now

broke

rea¬

every case

to

en¬

buy stocks with savings. Stock
prices are going up and the Sen¬

wealth of this country
divide it equally between

everybody in the country I

them rather than paid to them in
cash—the
men
decided
unanL

fund

Congress

to

to

Again It Is True Today

to

clined

sharing

Tax

ate wants to

for

profit

given

Excess Profits

you

reason

that brought about the

money
cess

any

cumulated

persuaded

of

be

tax

earner.

tional

possibility
acting another

under

and

sav¬

a

the

every

should

the

new

reduce taxes,

him, it does not give him the keen

with

One day he talked
employees of the Na¬
Lamp Association and he

to

encouragement to become

wage

capitalist out of

a

elections

law

Neither the pattern nor the

Mr. Doherty said, "By the same
token if you were to take the ac¬

making

making
tax

new

consideration

the return he gets on it is so
small that it does not encourage

country.
Almost 50
he saw the need for

ago

years

that

maintain

country I would have to tell
the

firm he established in 1905 which
was

"I

Before

the

Roosevelt Ho¬

by diversifying his investment."

upon fellowship, good
workmanship, pride of service and
loyalty was stressed above tech¬

ability.

of

types

reasonably safe

are

secure

Congress to enact

invest¬

1954 code if

benefits

law.

the

Guy Evans, New York Attorney and Former Acting
of Excess Profits Tax
Council, in reviewing the
tax law and
regulations, warns Controllers about the

effects of elections under the

"Assume that you made an

tax

Chairman

JOHN BUTTON

By

the

cure

Excess Profits Taxes

on

18

The Commercial and Financial Chronicle...

(614)

do

Why

Guaranteed Annual Wage

a

A

President, United Automobile Workers

year

peace¬

many

for the
cases,

cent

union, the UAW-CIO,
during the coming year
make an
important contribu¬

ago

We

to

in

tion to the attainment of this goal
—Peacetime

Full
in

t

n

Abundance

through

—and I

try of

employment

establish

is

not

a

economic

an

Reuther

that
for all our
we do firmly

ills,

but

a

basic and

important support to

our econ¬

be

can

When

the

to

their

Fascist

of

in

work

tories

began

every

a

to

b 1 e-b

o

tyranny

boom;
d i e d

we

and

that♦ the

in 1955.

life.

for

Detroit

of

the

its

effect

the

of

guaranteed

our

power

who

♦An address

Club

use

by Mr. Reuther before the
of New York, New York

advertisement

is

neither

will
it

only

by

the

to

the

need

and

customers

as

of

of

offer.

offer

the

to

Offering

50

sell

nor

a

the

is

our

—

else." We

or

our

are

pro¬

not ir-

the

workers

in

industry are
morally and economicaly entitled
to a year-around wage. And there
is

no

reason

issue

in¬

and

be

settled

peacefully

next

the

to

comes

will

earth

on

cannot
*

our

April

if

that

this

rationally

management

bargaining

prepared

to

table

discuss,

not whether, but how.

o]
.

And

it

should

want.

be

We-believe

incentive

that

the

a

as

a

through

to

pro¬

for their

work

But where

their

worker is

no

fault

of

be

by the employer rather
by the individual worker.
CIO

has

proclaimed

never

pathy for a worker who is unwill¬
ing to work when a job is avail¬
able
in

of

N. Y.

decent

CIO

that

4,

at

do

every

race,

ity
,

to

provide

however, is
American, regardless

creed,

earn

we

believe,

color

origin, is entitled to

Telephone: BOwling Green 9-1533

What

wages.

his

or

an

national

opportun¬

living and thus
security
for

economic

vi

oULldl

constructive

found

tools

within

and social

basic

our

problems

employment
in

economic

full

and

know-why. Why do

great power of the production of
our economy, unrelated
to human
and moral
tance

morality

is

that

say

for

used

be

made

and

people

the

free

freedom

can

if free labor

and

peace

nor

continue

management

in

a

struggle to divide

up scarcity. We
challenge of Com¬
tryranny
only
as
free

the

meet

can

munist

management

and

free

labor

de¬

find

can

abundance.

mises

promise

(a

filled

propaganda

where

unful¬

yet

as

pro¬

Communism

has

gained power) economic security
—but at the price of sacrificing

the

On

other

hand

there

in the Big Business

com¬

who

mistakenly cling to
the antiquated belief that unem¬
ployment and economic insecurity
are the inescapable price of free¬
dom.
We must reject both these
views and prove to ourselves and
munity

the

to

that

world

society

people

in

or

kind

have

can

of

both

to

answers

ulti¬

world

their

problems

basic

of

food

and material needs, so that
filled man's
needs
devote

can

our

more

and

energy

our

having
economically
of our time,
to

resources

facilitating man's growth as a
spiritual and cultural and social
human being.
The

basic

to achieve

economic problem

an

is

expanding dynamic

balance between productive
power
and purchasing power. The em¬

phasis must

be

put

balancing

on

the national economy, rather than
for

balancing the national budget,
only as we balance the na¬

tional economy can
basis for balancing

budget.

A

national

budget

rest

healthy
ultimately
and healthy

sound

a

national

and

for

millions

of

families.

American
iree

the

must

budget

American

create the

we

sound

upon

family

of

are

of

clothing and housing— to
satisfy their other basic economic

on

velop mutual understanding and
cooperation in the joint effort of
creating
and
sharing
economic

Communist

purposes

not be fright¬
by automation, that automa¬
tion ought to be
welcomed, that
technological progress ought to be
encouraged, so that ali of the

ened

we

secure

human

American

freedom's future.
Neither

is

need

we

of

resulting abundance is the key

pur¬

do

the

peacetime.

to

to

great expanding
power is going to be

moral

that

without

this

productive
and

without

need

we

impor¬

no

power

power

What

pose.

to

values, is of

because

people

full

we

What purpose

they going to be put to? The

mately

Peacetime full employment and
the

new¬

are

production

iC**

society.

can

and

achieve

and

these

our

have these things?
are

of

social

moral

What we really need is to find
a
way
to match our technical
knowhow with comparable human

problems—the

solve

ctilCl

of

use

.and

is

the

last

best

hope

men

everywhere. Only an
fully at work can be
to the task of defending

America

equal

freedom.

We

be

must

strong

on

the economic front in order to be

strong

the military front.

on

We

need

to

nomic and

the

approach

our

eco¬

budgetary problerhs in

knowledge that

we

are

con¬

fronted with the challenge of natioanl
survival
not
national
—

bread and freedom.

This is not
This is not

solvency.

academic matter.

an

matter that you

a

can

philosophize away, no matter how
eloquent you may be.
This is a
practical problem of a free people
dealing with practical human
problems and human necessities.
dilemma

Our
have

made
in

ress

is

the

fact

that

we

unprecendented prog¬

the

physical sciences, but
we have failed to

unfortunately
make

comparable

human
solve

ple.

basic

in the

progress

social

and

the

sciences

problems of

to

peo¬

We have places in the auto-

moblie industry—and it is true of

steel and every other basic indus¬

try—where

electri¬

automatic

an

cal brain has

replaced 500 clerical

workers, where automation makes

engine

block

in

less

than

15

single human
hand touching that engine block.
This is the beginning of the sec¬
a

industrial

ond

revolution.

And

the first industrial revolu¬

as

tion created very serious economic
and social

problems of dislocation,
new
and
more
potent

this

so

industrial

second

revolution

create

deep-seated

social

problems

economic

and

that

us can

give

can

us

free

better world,

abundance

that

need to solve the

problems of
hunger and ignor¬

poverty and
ance, man's ancient enemies; or if
we fail to use this great power for

socially constructive purposes as
they are reflected in the needs of
the people, these new tools can
dig our economic graves. That is
what

ing
a

the

upon.

sense

The economic demands that

shall

present

table

can

Communists

are

They believe

count¬

we

lack

of dedication, of determi-

the

at

be

if

met

we

bargaining
mobilize

we

the

potential abundance of our
advancing technology. Failure to
realize

the

possible

strated

growth

robbed

the

in

demon¬

and
our

economy

American

people of
$40 billion in wealth in 1954. Con¬
tinued

failure

billion

in

family

lost

will

rob us of $5D
Every American
$850 in 1954.
Every

1955.

family will lose $1,000 in 1955 if
we fail to utilize our
economy to
the fullest.

The
has
an

Guaranteed

Annual

Wage

been

universally accepted as
economic and social objective.

No

sound

economic

arguments
moral

or

been

raised

teed

Annual

been,

as

lame

that

cuses

labor

Wage.
that

the

been

occasion

raised

the

same

ex¬

raised

on

which

on

demands

of

for

economic

Guaranteed

believe,
of

even

social

wage earner,

compelling

a

and

in

we

no

Annual

Wage,

transcends

the

justice

the

to

for it deals with the
necessities
of
our

whole economy.

accept

have

justice.

matter

son

There

our

are

have

measure

The
we

have

Guaran¬

proposal is
impractical and vis¬

every

has

the

to be expected,

was

impossible,
ionary.
These
almost

either

on

grounds

against

excuse

social

a

produc¬

more

top down.

technology have

new

our

economy can and must be
built from the bottom up—not the

fuller

build

the

our

Prosperity in
tive

tools

these

and

and

need to do is to

we

that

science

given
we

What

will

dislocation

within the framework of

recognize

unemployment should

that economic security is an auto¬
matic right.
We have no sym¬

York

we

Communists

and that America can de¬
the common denominators
cooperation and joint action to

society.

that

The

H. J. CCONEY & CO.

that

iiGiiUiJ,

sponsibility needed to insure the

velop

his own, we believe that the cost
borne

undersigned.

the

wrong

of

Share

New

order

so

year-afround

than

Copies of the Offering Circular may be

from

to

schedules

unemployed,

Funds)

that

just

vide

STOCK

free society.

our

confident

am

they

production

Circular

fabric of

ultimiately will bring
disintegration of the

minutes without

an

-

the

plainly un¬
derstood that we are not asking
that our members be paid for not
working. That is not what we or
,

an

about

in

the

as

the struggle sharp¬

ueepens,

and

ens

an

American

solicitation

This offering is made

Cents Per

(U. S.




newspaper

elsewhere

and

that

in

nonsense

recovably committed to our spe¬
cific propsal.
We are irrecovably
committed to the. principale that

Shares

COMMON

Street

part of the

industry is "either

posal

TARBELL MINES LIMITED

Beaver

else has

attitude toward
management of the automo¬

bile

our

enSiS

programs

anyone

or

appeared

employes.

obtained

this

of

guaranteed annual employment
plan will provide employers with
an

599,760

25

A

has

the

ISSUE

Price:

test

practical,

more

industry

charge

people

who

the

in

first

at

even
now,
although we
complete formulation of a

any

that

purchasing

hands
it

had

we

meet

editorials

employment

automobile
more

to

a

that

incentive to. rationalize their pro¬
duction over the year so that we

offer to buy any of these securities.

NEW

ter,

industry, and to provide the man¬
agement of the industry with an

City, Jan. 17* 19S5.

This

in

of

ideas

plan for guaranteed annual em¬
ployment in our industry, we are
still prepared to discus any bet¬

steel

intensified

people

the

And

course,

becomes

free

our

frankly, we had to revise and re¬
shape and redraft a great many

have

more

the

purposes

annual

into

power

to

the problem is to place the hands
of millions of American families

Economic

on

were

we

objective criticism:

other

and

ideas—where

wrong

within

groups

periods of crisis and that

to

practical, hardwas

Communist-Marxist

political and spiritual freedom.

is

nation.
Two

answer

even

them

program for us, but to

a

our

order

industry, the rubber industry and
on
the economy
of the whole

peace¬

our

two

first

And this, of

year.

have

program

the

of

automobile centers in the last half

dustry is to put

to produce and

The

The other and

time abundance in America is the

consume—and

illustrate

ask

that
tech¬

off-base, what would prevent our
proposals
from
working.
And,

of

serious

to

annual rate

an

with

tested

we

committee of

didn't

in terms of

us

Tech-

of

years

this

headed criticism what

.

our

power

tell

the

automible

will

between

last,

before

We

formulate

tragic fact is that its current nearcapacity
production
rate - in
a
5,800,000-car-year—or less—is go¬
ing to mean unemployment and

the courage and
the good sense to find a way to
give people jobs in peace time
making the good things of life

imbalance

Harlow

industry al¬
ready has the capacity'to produce
more
than 9,000,000 cars a year
(the actual capacity is probably
closer
to
11,000,000)
and
it is
planning to produce, by the most
optimistic estimate, only 5,800,000

got

people?
principal obstacle to

at

economic

our

haven't

The

week

statistics

recession

for

-Mr.

with

experts.

cars.

to
provide full employment in
making the weapons of war de¬
struction, then pray tell me why
we

to

range

For two

ideas

our

significant and important facts of

will

the

just

These

We ask this question: If Amer¬
ica has the resources and the pro¬
know-how

5,300,000

9,242,028

structed, when somebody applied
for a job, not to ask them any
questions, but just feel them, and
if theyr were warm, put them on
the payroll.

ductive

fashion.

Estimates of auto-

production for 1955

ducing than

in¬

was

sity of Toronto, the University of
Michigan, Wayne University,

ending Jan. 8, the auto¬
mobile industry produced 177,539
cars,
in that one single week.
This means that they were pro¬

simple employment policy—
director

em¬

as

Institute

eco¬

problems
advanced

our

The

so'cietv

such

from

come

the

on

Harvard,
Princeton, Columbia, the Univer¬

week

the
job we got the grandfathers and
the grandmothers out of retire¬
ment and we put them to work,
and every major company, had a
the employment

example.

Now,

all the able-bodied people on

very

12

universities,

leading

Curtice's optimistic 5,800,000.

had

we

These

inent.

of

purpose
the

overcome

social

and

nology.

advisory

ology and the University of Wis¬
consin.
We have not gone about
the formulation of this proposal
in a haphazard or pie-in-the-sky

put
and

we

have

years

pay, on an

simple ABC economics that what
American industry needs, is not,

Fac¬

man

After

two

States

subject of guaranteed annual

in American

stage

leading

United

committe to the UAW-CIO

of the

some

last

served, without

policies
expansion

an

the

the

of

the

Massachusetts

meet

America.

to, work.

woman

to

power

this

at

from

sound.

war eame along
and
people of the world had

threat

went

re¬

12

in

and

out

prove

consultant

a

nomic

who has
by

one

was
as

were

for

meet

I

economic history it is a matter of

rnoblie

the

mobilize

to

in

result

will

will

who

investment

in

industry and that

as an

that is morally justified

and economically

the free

wisdom

writer

at the present time anyway, more
capacity, but more customers. Let
us
take the automobile industry

that will enable us to achieve
the goal of full employment and
abundance in peacetime.
It is a

omy

program

their

that

itself

But

We recognize

panacea

believe that it

—

prosperity through this
expansion will trickle down to
help the people below.

in

industry.

our

it

Walter P.

retained

to

the Ford Motor Company.

audience

accrued

this

program

this

in

society lacks the unity of

of possi¬

help people down below is to give
the people on top
more, in the

of

shall

we

number of them

a

candidates,

been

chose

of hundreds

economists

that

in

minds

that

assume

country

our

or

out

this

of

editors,

his

article,
consult
ble

author

the

tne proposition that our free

upon

pressure

Among the hundreds that might
have been consulted by this

flect

no

question

to tne needs
people.

in

some

it

domination

Tech¬

expressing the opinion
guaranteed annual wage
produce "inequities."
I
is worth noting that the

economist

their

base

world

philosophy holds that the strug¬
gle between competing economic

who subscribe to the
theory of economics.
This is the theory that the way to

belief

program.

our

think

have the

of

for

of the

quoted

Institute

are

Communists

The

arise

which

we

strategy

in one of our leading

as

the

would

American

we

capacity

are

tonight

annual

is

that

trickle down

a guar¬

There

provided

be found

to

are

indus¬

anteed

the

of

future

There

—

auto-

moblie

the

productive

the

the

nology

faith

unlimited

have

of all the American

establishment
in

CIO

our

and

his family.
That is
fighting for—not the
right automatically to economic
security, but the right to earn that
economic security. That, basically,
is at the bottom of this struggle
lor full employment.
what

to

Post,"

Evening

adequate purchasing power.

in

economy,

and

care—what

himself

One of the most re¬
printed
only
a
few

weekly magazines, "The Saturday

good sense to gear our expanded

Employ-

e

spoke it didn't

or

Economist Douglass Brown

more

own

over

our

didn't

Massachusetts

My

been

because the peo¬

was

was

weeks

be done.

intends

...

the last
guaranteed
The
nonsense, in a great

spoken

about

proposal is.

reason

no

produc¬

has

nonsense

so

know—or

advocates a
why this
cannot be settled rationally and peacefully in the automobile
industry, if management comes to the bargaining table next
April prepared to discuss, "not whether," but "how it should
Says there is

wage.

of

illustrate.,

ple who wrote it

to produce and our power to consume,

guaranteed annual

of
and

or

reason

leader, ascribing principal obstacle to

kind

annual employment program.

time abundance in America to the serious imbalance between
power

lot

written

President, Congress of Industrial Organizations

Prominent labor

the

schedules that the aforemen¬

tioned figures

By WALTER P. REUTIIER*

our

have

not

tion

Thursday, February 3, 1955

the

And for this
UAW-CIO

excuses

at

the

rea¬

will

bar¬

gaining table in 1955.
The phenomenal record of eco¬
progress, which has made

nomic

America
was

the

made

envy of the world
possible by doing the

Volume 181

Number 5400

"impractical" and
things which the
faith called
We

full

the^

doing

little

of

men

is

that

unlimited

expression

if

give

we

the

to

of

future

creative

genius of the free human spirit.

the

of

District

the

Neuhaus

Chairman

for

Committee

of

Eunice
Doell,
Mrs.
Helen S. Duvio, Margaret Guize-

made
group

L. Gureasko, Joseph Hegeman,
French M. Jordan, David
Krauss, Alvin J. Lecompte, Joey
McCulloch,
Rose
Pineri, N. C.
Roberts,
Jr., Albert J. Saputo,
Harold

L.

Sartin,

Lucas

and

The

DENVER,
Crouch

1955,
ding

are

now

and

Colo.

A.

affiliated

A.

&

was

yesterday (Feb. 2) by a
of underwriters headed by

D.

&

Co.

Inc.

each of which

The stock

8c

Company, 511 Sixteenth Street.

and

groups

Hinshaw

with Rogers

Minerals

was

Proceeds

received

by Minerals

which

ing limestone properties in Marblehead, Ohio and Strausburg, Va.
The balance of the proceeds will

and

be

available

ate purposes,

for

general

corpor¬

including capital

ex¬

penditures in connection with the
company's program for develop¬
ing kaolin catalysts for use by the
petroleum refining industry.
The

company was incorporated
in 1916 under the name of Miner¬

als

associates,
will retain

and is

a

hydrated

clays, and have

aluminum
a

silicates,

are

:

:.(615)

:v

applications,
among
petroleum refining and

well

cultural

insecticides, paints,

fining and purification of certain

petroleum products.
Upon completion of the financ¬
ing outstanding capitalization will
comprise
$3,786,667 long - term
debt, including $2,705,000 debt of

or

variety of in¬

a

subsidiary, and

of

Gross

income

subsidiaries

and

months

ended

to

amounted

income

1,819,497 shares

stock.

common

was

of

the

company

during
Oct.

Mr.

$8,115,054

$1,060,061.

San
Tex.

Neuhaus

Vice-Presi¬

is

dent

and

rector

Di¬
Un¬

of

derwood, Neu¬
haus &

the

the

Philip R. Neuhaus

Tex.

Austin

Mr.

is

of

Co.

Houston,

newly elected

District.

governor

of

Mr.

succeeds

He

Crockett of Crockett &

Claude T.

Co., Houston, Texas.
Committeemen
to

until

serve

Charles

J.

recently elected
15, 1958, are:

Jan.

Eubank

Charles

of

J.

Eubank Co., Waco,

Texas; William
G. Hobbs, Jr. of Russ & Company,

San

Antonio, Texas;. Nelson Wag-

of Walker, Austin & Wag¬

gener

District No.

goner, Dallas, Texas.

entire state of
Texas, Other members of the Dis¬
6

comprises

trict

No.

the

Committee

6

loch,

McCul-

Securities, Fort
Walter M. SorenMosle & Co., Hous¬

Investment

Worth,

Texas;

of Rotan,

sen

Bar¬

are:

McCulloch of Barron

ron

ton, Texas; John W. Pancoast of
Robertson
&
Pancoast,

Dewar,
San

Antonio, Texas.

Mr.
an

Neuhaus

expects

make

to

early announcement of appoint¬

ments

the

to

Quotation

Business

Cor/duct,
Practice

Uniform

and

Committees.

Imperial Minerals
Slock At 38 Gents
Milton

Blauner

D.

&

Co., Inc.,

New York, is

offering "as a spec¬
ulation," 830,000 shares of Impe¬
Minerals

rial
stock

at

a

Limited

telephoning

that it contains a

automobiles, trucks, boats

from

"push-to-talk" button.

companies can supply either complete

The mobile telephone resembles an ordinary telephone, except

Conversations may travel part way by radio and part way by telephone line.

mobile service, or furnish and maintain equipment for private

Bell telephone

radio systems.

common

price of 36 cents

per

share.
Net

the

proceeds from

sale

of

the stock will be used by the com¬
pany
on

for drilling and exploration
for mining

THREE

its claims; a reserve

More and More

plant and underground explora¬
tions, and for additional working

TYPES

OF

SERVICE

Telephones

capital.
Imperial

Minerals Limited was
under, the Quebec

Are Going

incorporated

Mining Companies' Act by Letters

Traveling These Days

GENERAL

Patent dated July

15, 1953, for the
purpose of exploring and devel¬
oping mining properties. Principal
offices of the company are located
in Montreal, Quebec. Holdings of
the company consist of approxi¬
mately 832 acres in Matapedia
Township, Bonaventure County,
and about 600 acres in Nelligan
Township, in the Bachelor
area, Province of Quebec.
The

company

exploring

and

Matapedia claims and

to

continue

the

copper

mercial

grade.

intention

of

same,

the

It

is

intends

primarily

deposits of

the

company

Bell

a com¬

present

System mobile telephone

service

—

saver—is

a

big time and money

areas

exploration,
including
driling of the claims, in
Matapedia area and then ex¬
plore
and
diamond
drill
the

diamond
the

authorized

capital of the

company consists of
5,000,000 shares of common stock,
par
value of $1 (Canadian), of

which
2,070,001
outstanding.

are

issued




and

Mobile

tomers

are

necessi¬

lines of business hav¬
on

the road and to

without

truck

or

boat.

a

moving

And from

any

other

telephone.

any

or

maintenance

only

a

car,

mobile

is

a

particular telephone at

SIGNALING

customer's

One-way,

non-talking

driver

an¬

example of how the telephone

people.

service to

of a particular vehicle to
comply with prearranged instructions, such as
calling the office from the nearest telephone.
the

being made useful to more and

more

a

vehicles.

notify

problems.

other

between

dispatching office and mobile units in his

capital outlay, equipment

This modern convenience is

Often mobile service is the

reach quickly

and

your

with

telephones cut labor and

obsolescence

professional people.

way to

telephone service between

of business. Bell System cus¬
receive these advantages

types

smaller places.

ing vehicles

or

vehicle-operating costs for many

and many

Traveling telephones

talk witb

Two-way

telephone

telephone anywhere.

cluding most cities of over 150,000

ties to many

you can

dispatcher's office

mobile

DISPATCHING Special two-way dispatch service

Bachelor Lake claims.

Capitalization—The

own

available in

in the United States, in¬

to first

complete

now

telephone
other

growing rapidly.

This service is
210

has been and is
diamond drilling

its

seeking

Lake

a

Bell Telephone

System

the

31,

Austin, of,

Antonio,

inks,

plastics and adhesives. Activated
bauxite products are used in re¬

Austin, Hart 8c

Parvin,

19-

-

drilling, paper coating
filling, and industrial clean¬
ing materials. They are also used
as carriers and extenders for agri¬

Both fullers earth and kaolin are

holdings in the

company.

oil

major producer of kaolin.

approximately 60% of its present

,

dustrial

& Chemicals Corp. will be applied
in part to the purchase of flux¬

Separation North American
Corp. and adopted its present title
in June, 1954.
It is the nation's
The selling stockholders include
leading producer of fullers earth
Lazard Freres & Co. and F. Eber- and of activated bauxite
products
stadt

James

—

George

435,934 shares

of

Of the
shares
comprise new financing by the
company while 310,934 Shares are
currently outstanding and are be¬
ing sold by certain stockholders.

Chronicle)

Financial

Sh.

priced at $24.50 per share.
shares
offered,
125,000

Rogers Adds Two
to

a

Corp. of America

Lehman Brothers.

Vaccaro.

(Special

stock

common

Chemicals

of

Association

Edward

r.

H.

6

Public offering of

Street, have added to their staff,
Brahney, Jr., Adolph G.

was

its

succee

meeting

a

Stock at $24.50

La.—Thomas

ORLEANS,

& Company, 722 Lafayette

Thomas

Dealers, Inc., Philip R.

elected
the year

At

No.

National

Securities

M

—

NEW
J. Lupo

Chronicle)

rix,

Elects New Officers
DALLAS, Tex.

to The Financial

Dantagnan,

NASD District No.

of

•

(Special

the

u

Minerals & Chemicals

Adds

Thomas J. Lupo

"visionary."

believe

America

by

Chronicle

The Commercial and Financial

...

and

10

1954
net

20

T^e Commercial and Financial Chronicle... Thursday, February 3, 1955

(616)

if

LETTER TO THE EDITOR:

5%

heating

Bank and Insurance Stocks
By ARTHUR B.

Praise for

WALLACE:

This Week— Insurance Stocks
In

rate the
the best
years for the business.
But just past rnid-year, when first-half
underwriting results were favorable, the three hurricanes struck
the east coast and piled up a total loss of approximately $275,000,000, and, according to Alfred M. Best Company's estimate, a

fire-casualty industry, and it was expected that at the
year
started, underwriting results would be among

extended

under

fell

loss

the

of

coverage,

As

former export manager

a

the

Manufacturers'

Automobile

Association, I

which

the

fully appreciate

can

that

wisdom

capsule
on

the

It

ment
of

the

and

their

of

industry

prices in

funds.

its

in

and

in

extended

to

for

If

the

United

that

the

collar

in

perience in recent
losses in

some

impact

business

important

an

money,

demand

on

to

of

would

be
of

vertible

usable

facilitated
least

at

and

by

one

the

ex¬

truly

con¬

fully

internationally

on

the

but 1954

saw

any

moral hazard—that is,

North

by one country
time deciding whether it will
simply

F. BAUER,

American

credit item in the

Vice-Chairman, U. S. German

conditions

prosperous

in

of Missouri, the last surviv¬

pany

tion

Jan.

on

through

economy

are

borne

tend to

And, aside from

any

is

such lines

becoming

fairly

cyclical

accident and health.

generally

productive capacity will act

(excluding

war

from

as

our

a

accepted

brake

as

The

to

be headed for

YEAR-END COMPARISON

16 N. Y. City
Bank Stocks

on
a

on

are

economy

divi¬

the increase.

good 1955.

Winkler, Chase Co. Formed
zan

NEW

YORK

5, N. Y.

Telephone: BArclay 7-3500
Teletype—NY

1-1248-49

(L. A. Gibbs, Manager Trading Dept.)

Avenue,

New

York

L. S. Allen

City,

to

en¬

5%

gas.

has

had

an

un¬

company

dividend

stock

record

Room

1709, 175 5th Ave.,

New York

Jan. 27,

rum

has had an inter¬
esting history. Electric service in
St. Louis began in 1878 when the
famed restauranteur, Tony Faust,
had electric arc lamps installed in
his restaurant.
The
experiment
was
a
failure, but the engineer
brought to St. Louis by Faust to
stage
the
display
remained
to
continue his work, and in 1881 or¬
ganized Brush Electric Associa¬

from

the

Building

Union

the firm
&

Co.

Trust

name

offices

in

under

of Landrum Allen

the

These

power

are,

low-rate basis.

a

share

of

estimate

McAfee

earnings

residential

expects

sales

increase

to

dustrial

sales

expects to

be

must

spend

in

raised

$232

mil¬

new

money.

expects to sell
bonds probably

company

$30-$35

million

this spring, while bank

late

City 10, N. Y.,

will

1955.

probably

be

stock

be

1956.

debentures

or

be issued at

should

loans

in

used

point, but
to sell

some

unnecessary

common

stock

current

equity

before

The

1.958.

ratio

is

about

35.6% and at the end of this year
annroximate 34%.
himself

ninth

largest metro¬

and

in

area,

Union

1902

Electric

was

75%

of

revenues

Greater

industries—such

trial processes

St.

Union's

elec¬

derived

from

are

Louis.

strategically located

The

city

is

the

to raw ma¬

as

kilowatts

to

company's load.

The

markets,

and

transporta¬

tion, and ranks second
road

and

trucking

as

center.

a

rail¬
It

is

raised to $1.40, about an
payout. The stock has been
selling around 28 recently, with
a
yield of 5% and a price-earn¬
ings ratio of 17.

area

of

Union Electric and its subsidiaries

along

Missouri

the

Missis¬

and

sippi Rivers includes fertile farm
lands, rich deposits of lead, coal,

clay, silica, and other mineral re¬
sources, and the famous Lake of
the Ozarks playgrounds
Electric

Union

has

almost

an

unlimited supply of coal available
in

nearby

fields,

of

and

natural

most

Public offering of units of 200,000 shares of

substantial
gas are also

efficient

steam

prefererd stock and

?no.pno chares of

stock of

common

Bowl-Mor Co., Inc., each unit con¬
stock

shares of preferred

one

and

share

one

of

common

stock is

being made by Aetna Se¬
curities Corp. of New York. Each
unit is priced at $5.50.
Net

proceeds

these

shares,

carry

its

from

the

sale

of

wil

be used pri¬
marily to enable the company to

finance

machine

its

leases

and

manufacturing

to

opera¬

tions.

Bowl-Mor

and

available, particularly during the
summer
months.
The company's
newest

Offer Bowl-Mor Slock

sisting of

service

remaining

iaries

Co., Inc. and subsid¬

manufacture

by lease and

sale,

distribute

and

bowling-pin
setting machine. They also assem¬
ble, install and service the ma¬
a

generating plant is Meramec w'th

chines.

capacity of 284,000 kw.
System's two hydro plants

The company's bowling-pin set¬
ting machine is believed to be the

The

a

about

duce

15%

of

pro¬

how¬

output;

first

commercially
successful
bowling-pin machine for the set¬
ting of candlepins, a smaller ver¬

these plants have been han¬
dicapped by the three-year
drought,
which was
intensified

sion

of

last year.

The

game

ever,

The
role

has had

company

the

in

erate g

facilities

Atomic Energy

other

which

a

development
to

major

of

gen¬

serve

the

Commission. With

local

utilities

it

or¬

Electric
Energy,
Inc.,
supplies power from its

the

regular ten-pin size.
of candlepins is very
popular in New England and the
Maritime Provinces of Canada.

It

is estimated that in the New Eng¬
land area there are an aggregate

of

5,300 candlepin alleys, of which

one-third

by the

Jcppa (Illinois) plant to the
project
at
Paducah,
Ky.
Union
Electric
may
obtain
as

have

been

mechanized

company.

new

A EC

much
power

as

With Coombs Co.
(Special

600 million kwh. of cheap

annually

from

the

H.

plant.

experi¬
menting with the heat pump and
it is now being used by a number
of customers.

It is estimated that

to

The

Financial

Chronicle)

LOS ANGELES, Calif.—Charles

Joppa

Union Electric has been

terials,

cently

85%

lead

as

alone in two recent
40,000

added

years

ganized

tric

company's
strong
financial
position.
The dividend was re¬

area's

zinc, cement, glass, chemical,
paper, petroleum and steel — re¬
quire large amounts of power. The
use
of electric heating in indus¬

four

acquisi¬
tions, ending with that of Laclede
Power & Light Company in 1945,

the

the

and

companies.

Subsequent

of

expressed

as

employment. However, some

these

of

8%

than

more

total

McAfee

favorably inclined to a
high dividend payout in view of

Missouri

nation's

politan

formed by merger of two of these

Over

S. Allen is engaging in a se¬

curities .business

on

President

amounts

unified electric service in the city.

Opens

WASHINGTON, D. C. —Land-

Specialists in Bank Stocks




and

tion, the first electric company in
St.
Louis.
Many small electric
have formed Winkler, Chase companies were organized later,

Company with offices at 103 Park

Laird, Bissell & Meeds
120 BROADWAY,

electric

Joseph Winkler and Louis Cha-

Request

Members New York Stock Exchange
Members American Stock Exchange

serves ' over

The company

gage in a securities business.

Copy

in

since 1906.

inflationary

company

miles

square

company

95%

broken

logical expecta¬

are a

of insurance

source

shareholders, has been much
seems

country's

they do when prices

insurance companies

investment income, the

Insurance

new

With steadier conditions in the general

increased dividends by

dends to

any

the

calculations); insurance companies

do not thrive in periods of inflation
relatively stable.

on

The

that

terri¬

a

600,000 electric customers and 32,000 gas customers.
Annual reve¬
nues
of
over
$110
million
are
about

as

18,500

serves

Illinois and Iowa, in¬
cluding the St. Louis metropolitan

improvement in volume of premium writings, there continues to
be growth in

Electric

Missouri,
area.

margin.

of

Com¬

of

of

tory

improve expense ratios, to the betterment of the in-..

dustrv's underwriting profit

exchange

Union Electric, im¬
its financial position.

treasury

it

will

effected

was

American

pany's remaining cash and miscel¬
laneous
assets
now
go
into the

con¬

out,

20
even

an

North

shares.

Union

the

course,

The

for

(for each share of NA)

ing subsidiary; the final distribu¬

seri¬

probably bring increased premium volume, and this in turn

in

is available for 1955 but President

Chamber of Commerce.

obtained

Stockholders, in addi¬

to

1.2 shares of Union Electric Com¬

ex^

will

one

its affairs under the edict

up

of the SEC.

the unscrupulous

outlook: If the forecasts of

Company,

outstanding historic utility

proving
more

6

lion, of which about $100 million

receiving shares in other
subsidiaries over the years, have

ing

deflation^in general business.
One

1955

and

purchases.

interchanges of

pany

GEORGE

Utility Securities

holding companies, is now wind¬

econ¬

a

5

by over 11% and in¬
by over 6%.
Con¬
at a
struction
expenditures for
1955
make its currency convertible in
will approximate $37 million, of
the only sound and useful way it
which $22 million will be raised
can be done—namely, by putting
internally. Through 1959 the com¬
it on the gold standard.
but-

with a population of
1,800,000, and leads in the diver¬
sification of industry.
More than
350
different
types of industry
are
represented in this area, and
no
single industry is responsible

of the

arson—does not have

it does when

industry that

its

increase

of

No

international organiza¬

super

tion

Union Electric Company of

the first downturn in fire

Further, during boom conditions in the

of

summer

units

will

coun¬

underwriting

unsatisfactory

early
have

will

large

currency.

The goal is reached not through

By OWEN ELY

insurance industry

the

course

the

In
EEI

istence

mili-

889

ber-December.

con¬

these coun¬ operation so that its purchases
tries took this step, as England from Union Electric may be some¬
did around the beginning of 1800, what smaller for the time being;
world
trade
and
investments however, the AEC may want to

all

for

the

on

gold

Even if only one of

stipulates

title

a

other

tents.

of the

in

tion

marginal businessman is unable to make ends meet during

Bell

States
is

Public

But the law of averages may be ex¬

highly

a

years,

time.

the so-called

tion;

a

spe¬

the

into

one

basis of their respective

Inc.

may

So far as rates are concerned, in¬

losses,

exposure.

resulted

coverage

trend

a

last

11.2%

increased

load

Resi¬

fuel costs.

year.

it

pected to work in favor of the industry, for not only has extended

It

to

dential

Preferred

the high grades,

insurance

the

could constitute

coverage

catastrophic

always has this

tinued

money

interpretation

proper

holders

has been of such magnitude.

coverage

ous

tible

word.

compensation lines—this because the loss experience on extended

the

a

milligrams, German
211 milligrams and the

drought

continued

the

which increased

Sales to Electric Energy,
(EEI) exceeded $7 million
English pound sterling to 2,488 last year; other large power sales
milligrams, a group of major cur¬ were off slightly for the first
rencies would be readily conver¬ ten months but gained in Novem¬

automatically
is
convertible anywhere in the full

tervailing influence to the expected reductions in automobile and

omy,

of

representative

rates, and catastrophic losses such as those caused by the 1954

As

to

203

currency

much to the fore in most of 1954.

outlook

the

hurricanes, and in big fires.

,

its

mark

same

chiefly in the possibility of some downward adjustments

lie

creases

$1.36 and in 1954 rose sharply to
$1.65. This gain was accomplished

Most insurance company manage¬

this group that was so

Uncertainties

in

of

that

to

moderately to

earnings increased

ounce—the Swiss

an

re¬

but during 1949-52
$1.13-$1.29. In 1953

between

were

earnings

of 89-980 dur¬

range

a

1944-48

ing

increase in portfolio valuations

large

ments confine their common stock investments to

1955

mained in

holding equities will sweeten surplus account

companies

was

ap¬

cific amount of gold for all hold¬

was

improve liquidating values.

and it

it

govern¬

title

1954,

This

a

of

country makes

George F. Bauer

ers

l/35th of

franc

When

ment

and

a

would

make
pear.

the

a chief beneficiary of the rising
particularly the fire companies as
they are much larger investors in equities than are the casualty
units, which by the nature of their business must be more liquid,
and hence utilize bonds more than common stocks for the invest¬

insurance

market

as

words

ing of extended coverage.
The

as

labyrinth

physical, will probably lead to
in rates. It does appear that
the long, painstaking efforts of the industry to educate drivers
is having some beneficial effect. Workmen's compensation also
contributed to the offset that most lines made to the sorry show¬

stock

not

subject

reductions

moderate

further

some

is

involved

lines.

collision

damage,

property

curren¬

cies.

important casualty lines wound up 1954 profitablv,
experience in the principal categories, automobile

loss

subject

ity of

Most of the

and

the

in

form

of convertibil¬

1951, 109.5%; 1952, 91.2%; 1953,
113.2%, and if the expected 135% becomes the final figure for
1954, it was evident that sizable rate increases will have to be made.
As the other lines were relatively good for 1954, many of
the multiple-line carriers will report some statutory profit. Others,
particularly those writing a large coverage on homes, will go
into the red.
Nevertheless, despite the severe losses from the
hurricanes, industry underwriting results will not be too bad,
with the offsetting other

con¬

tributed

1950, 149.0%:

recently has been:

Shall

Mr.

ratio on extended coverage

combined loss and expense

The

of

of gold—which is the

grams

the

homes,

by $10 million a year.

Electric's

Union

recent

on

as

,

line.

be increased

despite
Chronicle:

has
been giving the insurance companies a hard time for several years
because of the incidence of storms.
This condition, however, is
likely to have a salutary effect for the insurance companies as
it is almost sure to fortify their bid for higher rates on this
Most

commenting

Editor, Commercial and Financial

companies of the order of $150,000,000.

for the stock

set-back

Bauer,

F.

cooling

and

company's electric revenues would

article in the
Chronicle," maintains gold standard offers only sound means
for achieving converlibility.
George

1954 boded well for the

the early months of

insurance,

Simple Definition
Of Convertibility

custo¬
of

residential

the

of

should install this system

mers

Smith, Joseph

James
to

the

C.

Gust

staff

Los Angeles,
Street.

of

B.

have

Tipton, and
been

Coorrbs

&

added

Co.

of

Inc., 602 West Sixth

Volume 181

Number 5400

Continued

from first

.The Commercial and Financial Chronicle

..

(617)

of

page

Piospect of Atomic Power

run

atomic

on

fuel.

Our

country, however, has been
abundantly endowed with cheap
coal and hydroelectric power. Al¬
though the prospect of an entirely
own

new

the

of

source

American

useful

is an
Americans

one,
we
it difficult to

in the

power

the

for

energy

economy

citing
find

may

atomic

regard

same

ex¬

manner

do

as

governments

and people of
power-starved, economically
underdeveloped areas of the

the

world.

In

such

regions, atomic
quite literally spell the

power can

sincerity

that

the

power-

hungry nations of the world
should not attach such over-riding
importance
to
securing
useful
from

the

atom

the

at

earliest possible date.
It

is

sions

thing to entertain vi¬

one

of

the

atom

harnessed

for

existent.

Were

atomic

get

auoUt

such

juo

uu

worldwide

a

atomic power industry. It is now
clear that we can achieve the goal

giveaways, I would be

against

relaxing the government
monopoly over the atom at this
I would

time.

prefer, were I such
that the government,
using the taxpayers' money, be
exclusively charged with the task
a

person,

this:

The

American

determining
how
to
quickly, and as

reach that goal as

efficiently,

possible.

as

Power—No

Government

a

out

pro¬

hibited
private
ownership
or
operation of atomic reactors, just
as, with minor exceptions, it pro¬
materials
can

of

of

by

assure

special nuclear

private

persons.

that

you

the

original atomic

our

I

framers

law

energy

not socialists. The strict gov¬
ernmental controls they
imposed

were

on

the

atom

mirror

the

did

no

caution

more

and

than

orudence

in dealing with a new
largely unknown force, whose

necessary
and

implications
civilization

-for

the

future

Moreover, the organic law
ognized

by

its

of

tremendous.

were

rec¬

terms * that

own

legislation in this

new field would
from time to time require amendment in accordance with chang-

ing perspectives of atomic energy.
Last
summer,
the
Congress—
drawing upon our eight years of

experience of working under the
organic law — decided that the
time had arrived when atomic de¬

velopment could safely be opened
to increased private participation.
The

Atomic Energy Act of 1954,
passed at the end of the last ses¬
sion of the

Congress, permits pri¬
capital, private skills, and
the private competitive drives to
be brought to bear on the terms
vate

of atomic energy. Under

private

lowed
and

companies

to

own

to

materials
for

use

It

from

special

nuclear

the

important

what this

new

does

make

not

al¬

now

government
atomic fuels.

as

is

licensing,

are

and operate reactors

obtain

to

understand

law does not do.

It

the

development
of atomic power exclusively a pri¬
vate
concern,
dependent on the
expenditure of private capital. On
the contrary, the AEC continues
to play a major role in the atomic
power

field, both in basic and

ap¬

plied research, and in the design
and

construction

power

of the

of

prototype

reactors.
new

The philosophy
legislation, in short, is

that of team work—of cooperation
between

government and

industry,

with

private

each

taking on a
part of the job of bringing useful
atomic

power

from

technical

possibility
plished fact.

the

stage

to

of

accom¬

I must confess my inability to
understand the argument that this
_

new

legislation is

away

bill.

an

be

by

to take

atomic

of

atomic give-

With all respect for the




ao

uie

disservice
at

real

way

to

atomic giveaway would

requiring the government
on the complete burden of

fair

reactors,
private capital

power

future date,

some

returns

will

vested

the

energy

The

time.

an

when

!rhe

iu

a

on

is

in¬
prob¬

more

able.
I

that

the

profit-andloss statements of the private cor¬
porations now embarking upon
am

sure

atomic
will

development

soon

prove

atomic

of

programs

that the problem

giveaway

is

illusory.

Unfortunately, however, we
other
problems which

now

face

are

real, and exceedingly complex, in
translating the intent of the new
atomic energy law into the steel
and

of

concrete

an

atomic

power

industry actually producing elec¬
tricity.
Atomic

The

Commis¬
and private

Energy

sion, the Congress,
industry itself now confront a dif¬
ficult
period
of
adjustment in
adapting their modes of thinking
to the prospect of an atomic pow¬
er
industry, and in making sure
that each is doing its best to prothe

mote

speedy

growtn

oi

tins

industry.
It

cannot be

the

that

repeated too often
law

new

change

insofar

atomic

as

concerned.

transition

ly

represents

from

ment control to

strict

tive

system

df

free

degree

of

actions

of

wisely

industrial

its

authority
with

and

.

District

the

and

used

restraint.

the

new

W'^ation
atomic

en¬

Atomic

Energy Commission
private firms. This is much

more

—it

than

stands

a

semantic

for

distinction

completely dif¬
ferent way of doing business. Ac¬
cordingly, the Commission must
at all times guard against the dan¬
ger of issuing regulations which
might have the unintended effect
a

in

technological

atomic

prog-

and

energy

business.

small

pro¬

To

my

Atomic

the

ize

Energy

small

centive to find
tion

conceivably running to
millions

of

against the

owners

plant.

Our insurance

panies have therefore been reluctant

issue

to

policies

The

>

others.

funds

acute for
ity which might

an

utility

laws,

a

the

Now

what

of

Atomic

operating power reactors? Might
some pooling of resources enable
insurance companies to issue poli¬
cies against the danger of reactor
accidents?
Might if be necessary

ness

face

up

to

very

insurance

No

It

is

those

It is

now

honest

to

up

person

profits.

unfounded

that

remember

on

side.

our

sincere but gullible

ple into thinking that

peo¬

Ameri¬

our

atomic energy program

can

weapons, or

is de¬

two

concerning pat¬
ents
emerged
in
the
Congress
during last summer's debate on
the
Atomic
Energy
Law.
One
school
favored
compulsory
li¬
censing of inventions discovered
by private parties using private
funds. The other school, of which
I was myself a member, wished to

the

in
can

talk

Ameri¬

our

urge

can

offing.

say

in¬

honest

adventure

that

all

be

we are

unwilling-

American participation in the
peacetime
international
atomic
pool proposed in President Eisen¬
hower's

historic

address

before*

the United Nations in 1953 repre¬

the

sents

best

and

surest

way

the
of

true

eager

greatest
our

time,

enterprisers

to participate in

atomic

crusade

and want into

the

end

against poverty
working interna¬

a

organization, actually using
atom to bring new
hope to the poverty-ridden arean

the

peaceful

the

of

world.

Our

nation

cannot

make

its appropriate contribution
this great cause through tho.

to

work

of

This is

our

alone.

government

challenge which

a

can

only by our government and
American
industry working
as
partners.
I

have

every

confidence

industry will now show
itself equal to the grave respon¬
sibilities

which have been

thiust

it, and that it will prove its
ability and desire to help maka
the atom the benefactor, and not
the destroyer of mankind.
upon

Lewellen-Bybee Opens
WASHINGTON, D. C.—The Lewelly n-Bybee Company has beer*
formed

with

offices

at

1627

Street, N.W. to engage in
rities business.
L.

Officers

secu¬

Rollo

Lewellen,

President;
W.
J.
Vice-President,
and

Lewellen,

David H. Bybee, Secretary-Treas¬
urer.

Mr. Lewellen

was

with Weber Investment

formerly
Company

Ogden, Utah.

Year Ended

Three Fiscal Months Ended

.

.

-.

Hydraulic turbines and accessories
Other work and
Totals

.

operations

.

.

....

December

December

December

December

31,1954

31,1953

31,1954

31,1953

$111,324,440 $ 93,748,637

$25,881,239 $29,428,577

.

4,702,996

9,653,964 '

.

1,423,194

1,624,198

.

2,712,932

2,978,001

$34,720,361

$43,684,740

•«.....*•

-

close of the
The

46,477,078

6,009,625

5,242,376

12,870,934

10,815,588

$153,658,645 $156,283,679

major contracts

unbilled at the close of the
Number of

23,453,646

At Dec. 31,1953

At Dec. 31, 1954

Estimated balance of

period.

.

$173,022,484

•

$181,562,872

J

employees on roll at the

13,409

period

16,236

the percentage-cf-completion bosts; such income
the contracts. Contract billings and estimaied unbilled bclances are

Company reports income from long-term shipbuilding contracts on

for any

period will therefore

vary

from the billings

on

subject to possible adjustments resulting from statutory and contractual provisions.

By Order of the Board of Directors
January 26, 1955

K

a

are

(Subject to audit adjustments)

Shipbuilding contracts

that

American

Major Contracts and Number of Employees

Ship conversions and repairs

be

met

Quarterly Statement of Billings, Estimated Unbilled Balance

Billings during the period:

of

global

a

tional

in

this adventure.

toward

translating the vision of

the

person

world

the

Newport News Shipbuilding and Dry Dock Company
of

of

Our government is now nego¬
tiating v/ith the other nations of

give¬

simply not

are

presents

industrial

should

An

all

atomic

that peacetime atomic de¬

velopment

and

Despite
of

such profits

away,

schools of thought

that

of the world.

ing out the prospect of large, im¬

companies.

will

Law?

American busi¬

our

dustry to enter this field by hold¬

our

The Problem of Patents

You

of

lions

business

mediate
'

Energy

ful atom.

the Congress will
these questions,

the leaders of

responsibil¬
itself under the

community to show
that it is ready, willing, and able
to contribute its talents, its initia¬
tive, its know-how, and its capital
to the development of the peace¬

and that it will seek the benefit of
the thinking of

the

industry

of

done.
can

what extent?

much hope that

rewards of

asking that the
Congress permit broadened pri¬
vate participation in atomic de¬
velopment.
This has now been

Might it be
necessary for the government it¬
self to assume directly a part of

soon

is

community stood in the fore¬

front

reinsure part of such policies
through the government — and if

I

of

secret that

no

to

burden?

limited

its

invention if it

new

new

insurance

be

answering Moscow's lies.

ities

this

risk

not

legitimate

Might it be possible and

to

of

use

small company can¬

new

desirable, for instance, to limit
the liability of private companies

so,

idea—even

new

the necessity of

Energy Act of 1954, and I earnest¬
ly hope it will soon be passed by
the Congress.

Wherein does wise national pol¬

icy lie?

in¬

Congress a bill which
would repeal the compulsory li¬
censing features of the Atomic

our pub¬
such a company
would make a regulated profit—
while running the risk of incur¬
ring an abnormally large loss.

lic

should

less
outpouring of the Kremlin
propaganda mill has duped mil¬

I have therefore introduced into

the

and operate

atomic reactor. Under

an

and

can

Yet, if we are to be realistic, we
must acknowledge that the end¬

inventor.

an

util¬

electric

own

a

will

on

denied

quate insurance becomes particu¬

larly

But

and

not

of obtaining ade¬

problem

a

with

licensing this idea for the

covering

that, regarded in its fundamentals,
this struggle is a contest for the
allegiance of men of good will. In.
this struggle, all the advantages:

to share the peacetime benefits of
the atom with the other peoples

development of

such contingencies.

It should be obvious to all

alone.

process

a

when faced

com¬

be¬
and

compulsory
licensing,
a
large company may be willing to
stake great sums of money on the

dollars—

of

of the atomic

no

struggle

forces of freedom

the forces of tyranny will not be
decided
by military superiority

substitute inven¬

a

the

tween

voted exclusively to the output of

Under

—

com¬

global

present

for a discovery
competitor has patented.

or

major accident occur, thousands
of
people
might
file
damage

should

Under

pulsory licensing, there is

which

Yet

accident.

business.

be obvious to all that

It should

the-

of thinking,

way

contrac¬

ergy industry will be governed by
licenses, rather than through con¬
tractual
arrangements
between

the

speeding

tecting

of experience

the
large
over
the

was

great

words,

of

dess

theoretical

a

were

lation with the declared intention

a

reactor,

.

that

tures

might

licensing fea¬
written into the legis¬

compulsory

a

administered, can substitute for
the competitive drives of an in¬
dustry based on private risk—and
it is precisely such an
industry
which
r>nntemplated under the
new
legislation.
other

The

Commission, there has yet to be a
single fatality—or even a serious
injury of any kind—caused by a

system of government con¬
tracting, no matter how wisely

In

of

years

and

no

assumes

Congress.

radioactive

required

exercise

supervision

This

tors.

Yet

to

of

with,

peace

tra¬

our

The understand¬
stringent secrecy provisions
original law, coupled with
necessity of guarding against
hazards to public safety and the

security,

an

worldwide

of

cause

justice.

competi¬

enterprise.

Commission

Were

the 84th

compulsory li¬
in the design,
construction, and censing would accomplish precise¬
operation of atomic reactors by. ly the opposite —.it would slow
t he wartime Manhattan Engineer technological progress and penal¬

the

national

would be reexamined by

emphasize that,

me

more

majority of

a

patents, the Atomic Energy Law
as
finally passed contained pro¬
visions drawn by both sides in
this controversy. It was agreed at
the time that the patent sections

a

go out

area

opinion,

my

all, it can be honestly
said that, in atomic development,
American industry now has a tre¬
mendous opportunity to serve the

govern¬

ably
of

large

of

Peace

Above

industrial pat¬

an

tern more in accord with

ditional

a

in philosophy
development is
It envisages an order¬

complete

Let

far

After 12

ity.

money

much

be

and

danger than of practical possibil¬

would be by keeping private cap¬
ital

into the field at

Monopoly

government monopoly.
Atomic Energy Act of 1946

use

way

taxpayers

perfecting atomic
and then inviting
Longer

Until last summer, our national
atomic
energy
program
was
a

hibited the

reai

point

simple

of immediate

very

materials.
this

power

and

obvious

ane

present

atom,
questions
of

real

a

hundreds

an

conventional

and, in

Serving Cause of Worldwide

new

-

as

the Senate also—preferred normal

an¬

contaminated with

claims

compete in

can

with

market

create

face
in

control,
be

point where it

but

Atomic

atomic industry
closely as possible to
our
normal patent system.
Al¬
though a majority of the House—

Accident

discuss

against the possibility

the

conform

obtaining adequate insur¬

of developing atomic power to the

onen

to

major reactor accident.
atomic power reactor to

as

pioneering period was over.
an entrepreneur interested

atomic

of practical power from the
we

ance

businessman

a

Were I

is

to

I

Reactor
now

me

problem

of

lem

these

that

until such time

energy

other

choice

make

pressing urgency in the atomic
power field.
I refer to the prob¬

exclusively concerned with large
short-time profits, I would frank¬
ly be reluctant to invest money in

electricity.

thing
creating

other

the pioneering years of atomic
energy—the years when risks are
great and profits are small or non¬

the production of peacetime pow¬
er on a worldwide scale—it is an¬
of

realize

Against

Permit

are

in

wonder

those

already

ment,

tween

power

a contract-based,
licensed-based, in¬

a

Question of Adequate Insur¬

ance

in profitable fields for invest¬

are

the

widespread poverty and
relative
plenty.
It is therefore

of

The

having such
fears, I suggest that they are vic¬
tims of upside-down logic.
I am
sure the members of this particu-1
lar audience, interested
as
they

difference between economic stag¬
nation and economic progress, be¬

small

than

dustry.

The
may

"

encouraging

rather

21

R. I. FLETCHER,

Financial Vice President

f

22

The Commercial and Financial Chronicle...

:(618)

Cautious

for

Optimism Still Business Keynote

Survey Committee of the National Association of

Purchasing Agents under its

higher, with

evidence of greater competition in

more

opinion of purchas-

ing agents who comprise the National Association
of
Purchasing
Agents Business Survey Commit-

tee, whose
Chairman is

fi

admit

to

of competition
to

that

would

search out ways of

days
the
to

eliminating

of
Purchases,
The Detroit
f, Edison ComJf
pany, Detroit,
H Mich., reports

that

cautious

optimism

ographic and

the keynote of

January
of the
pin o n
of

Purchasing
E

ecutives.

x

Production
continues

ing

high, with 42% report¬
increase and 47% reporting

an

change from last month.

no

orders

have

with

the

number

the

creases

slackened

lowest

since

New

last

in¬
Au¬

gust.

However, the number re¬
porting a decline of new orders is
than

less
half

of

report

last

the

month,

and

committee

almost

members

change.

no

of

increased

developing

in

competition
lines.

many

Some

price increases resulted from "offwhite"

negotiations

to

secure

prompt delivery of needed mate¬

rials,

while

others

general

were

increases announced by manufac¬
turers.

Employment
with little

There
the

continues

high,

change from last month.

is further indication

that

inventory reduction movement

J?as ^Mn4.itSuCOurfu but there ^s- n+°
rus

_°

_

uy>

e survey

pom s

Industries relying on the

out.

tomobile
and

for'

companies

those

who

quantities of

au¬

business

significant

use

steel

somewhat

are

apprehensive of the Spring labor
negotiations. Few steel users, how¬
ever, have present plans of mate¬
rially increasing inventories to
cover possible strike
periods. They
feel, however, that general busi¬
conditions could be adversely

ness

affected

if

extended

work

stop¬
prolonged labor

pages result from

negotiations.
While

expect
come

icy,

Purchasing

Agents

cautious in their

with

the

buying pol¬

highest

months

many

still

good 1955, they have be¬

a

number

operating

in

in

the

hand-to-mouth to 60-day range.

commodity

prices

give

indication of creeping higher.
More of them than at any time
some

since

last

prices.

August

higher

report

To offset this,., competition

is keen and often from unexpected
sources.
The- markets
generally

firm,

are

large movements

either up or down.

-

Inventories

ever.

there

is

low

a

little

point.

How¬

inclination

to

result from labor nego¬

tiations later in the year.

inventory
any

the

control

Careful

continues

schedules.

in

the

month.

little

change

is

period ahead, Pur¬

chasing Agents do
marked increase

„

nomic

not foresee any

over




present

em-

Administration's

policies and

program to date
strongly in paternalism in
several directions. It believes in
providing, in large part
at some one else's
expense for the old age of all, or very
nearly all, the citizens of the United States. It has left

growth when it takes its part, at the side of the

doubt that

no

research and in providing
public facilities, such as highways, hospitals, harbors, and
educational institutions, on which the expansion of the

pense

dations of the economy

when it widens opportunity for

of

and, working in cooperation with

cessors

people.

securities business is still shackled and has

is a sort of philosophic exposition
way" which the President has so often said
to follow.
Before setting forth his "basic

Here, obviously,

propositions" the President had paid his respects to those
right or the left of the path he
is setting out for himself. "Some citizens," he said, "lack¬
ing faith in the ability of the private economy to generate
a
high level of activity, espouse a steadily increasing role
for Government. They urge new public undertakings and
unbalanced budgets as devices for augmenting private demand, often with little regard to the cause or magnitude
of any deficiency in demand. Other citizens, adhering to
wjia^; ^ey regard as the ultimate economic verities, are
critical of any governmental action that is designed to
prevent or to minimize the rigors of depressed incomes
and unemployment."
Then says

the President: "These are extreme and doc¬
positions. If one is insensitive to the inequities
of inflation, the other is insensitive to the misfortunes of
depression.
Each carries the danger of undermining,
sooner or later, our
system of free competitive enterprise.
Neither is suited to

our

needs

or our

times.

The American

people believe firmly in economic freedom, but will not
passively accept depression or inflation. The need of our
times is for economic policies that, in the first
place, rec¬
ognize the proven sources of sustained economic growth
and

betterment, and in the second place, respect the need
of the people for a sense of security as well as
opportunity

complex and industrialized society."
of course, many other passages to be found
in the report which
pay tribute to individual initiative
and to the enterprise of the American citizen. "The Amer¬
ican economy has created new
jobs and produced marvels
our

of abundance in the past.

It should be able to do so in
equal or even greater degree in the future," is the com¬
ment at one point. Again, "the
history of our country, as
well as of other parts of the Western World, demonstrates
that economic progress depends
fundamentally on the
enterprise and initiative of millions of people seeking to
good, of course. It would be much
heartening if, for one thing, the most ardent of the

New Dealers had not also

fervently and

so

so

repeatedly

assured the

people that they were the real friends of the
enterprise system — and as consistently shown by
actions that they were
nothing of the sort.

throughout this Economic Report of

President, as well as in various other utterances of his
his associates,
passages frequently appear which
"bring the eternal note of sadness in." "A glorious eco¬

nomic future
may be ours,"
that "it is not vouchsafed to

by wise management of

the President says, but adds

our

us.

We shall achieve it

national household."

follow passages which leave the

impression that the

only
Then
pres-

foreseeable

no

future.

prospect of
The

February issue of the "Guaranty Survey," publication of the
Guaranty Trust Company of New York, discusses theories of
increasing

supply to maintain and advance the general
putting such schemes into practice

money

price level.

Concludes

tends to

intensify the "boom and bust" cycle.

Contending "one alluring guise
in which the
inflationary nostrum
is
of

now
a

being pedalled is the idea

governmental

in

gram

which

policy

new

ministered
doses

to

the

but

constant

the

general

issue

pre¬

Money

exert

upward

in

slight

a

pressure

on

editorial

an

article, presents

guments

of

tained

such

in

the

fallacies

ar¬

con¬

policy.
Picturing "controlled inflation"
as
nothing but the old nostrum
of cheap money in a new form,
"The
Guaranty
Survey" states:
"Speaking of a controlled infla¬
tion

is

a

much

like

speaking

controlled forest fire.

of

a

The hazard

does not lie in the possibility that
a scheme might fasten itself

such

upon the economy, but in the fact
that it could do immense damage

before

it

collapsed."

theory

flation,'

in¬

"Survey," "is
practically every
To begin with, it assumes

point.

much

at

more

relation

ate

'controlled

direct and immedi¬
than

actually

exists

between the money supply on the

hand and prices and business

one

activity

on

these

the

other.

other

Money af¬

conditions

only
in the

as
it
is spent.
Changes
velocity with which money circu¬
lates
are
often
more
important
as
an
influence
on
prices and

business volumes than
in

the

they

amount

are

much

are

changes

outstanding, and
less amenable to

control.
"The

idea

sponding
dictable

in

of
an

way

to

an

economy

orderly and
measured

re¬

artificially

can

tive

as

remain

largely

business

a

long periods. Such
into

come

ineffec¬

stimulant

ated

being in

by

until

normal

a

example.

response

bank

for

does not

money

specific need, as does money

to

a

cre¬

loan, for

Hence it tends to lie idle

business

activity

is

stimu¬

lated
by
more
positive forces.
Then the idle money asserts itself

vigorously, swelling demand
precisely the time when such
effect

is

least

billion,

desirable.

The

thereabouts,

or

into the economy
Government
in

at
an

$20

poured

by the Federal
the

effort

to

'prime the pump' of recovery dur¬
ing the 1930's had surprisingly
little effect at the
time, but dur¬
ing and after the war it unques¬

tionably played its part in inten¬
sifying the inflationary pressure.
"The

idea

of

'controlled

infla¬

conveniently forgets the dis¬

turbing

effects

nipulations
in

price

on

of monetary ma¬
business. Changes

levels

affect
different
commodities and services in dif¬
ferent ways. The price structure
becomes distorted and ceases to
be an accurate indicator of mar¬

ket

forces.

vestors

false

ing

Businessmen
misled

are

have

means

to

be

business

duced
and

bial

and

into

that

unless

inflationary

losses, re¬
output,
prover¬

booms

by reactions.
administered

whelming amounts,

are

Inflation,
in

occurs

starts, occasioning

result¬

corrected.

demand, curtailed
unemployment. It is

followed

in¬

making

calculations, and the

errors

This

and
pre¬

doses

and

tion

tion'

the

says

unrealistic

a

of

determining

levels
of
.business activity.
injected into
the economy by governmental ac¬

money,

monthly publication of the Guar¬
anty Trust Company of New York,
in

in

prices

price," the February
"the Guaranty Survey,"

of

tors

pro¬

economy

sufficient to

of inflation also
ignores the vital;
part played by nonmonetary fac¬

or

sumably in the form of Federal
borrowings from the banks, would
be continuously created and ad¬

fects

But What Does He Mean?
The fact is that

the

The Fallacies of "Controlled Inflation"

"The

All this is to the

in

public
utility industry is under the thumb of Federal
regulation,
and
apparently is likely to remain so. If the Administra¬
tion has
any interest in reducing monopoly in the field of
labor relations, we have not heard of
it. By its fruits and
its profession shall it be known.

who travel either to the

trinaire

freedom

greater

of "the middle

their

Though slightly less ambitious than its prede¬

in this

no
promise of reducing the burden
regulatory operations of the Federal Government. The

of

The "Middle Way"

free

ex¬

of the rank

care

We have heard of

neighborhoods."

more

absorbing at taxpayers'

respect, it nonetheless continues to pour out
taxpayers' funds in large amounts to the farmers of the
country.

helps individuals to cope with the
of unemployment, illness, old age, and blighted

the States and localities,

intended

in

great concern—to the point of committing the credit of
the country—with the
provision of homes for great masses

its less fortunate citizens

he

believes

people. No doubt can remain of its direct
taking care of the unemployed. It has shown

interest in

"Sixth, the Federal Government strengthens the foun¬

hazards

it

substantial part of the medical

a

and file of the

private economy heavily rests.

and

reported

expansive

The

the

employment situation this
In the

y

contract.

:———-—•—?—■—

and

Employment

Very

the

expenditures,

contribute to
strength and stability of the economy."
These and many other
passages which might be quoted are
open to many and varied interpretations. Their real mean¬
ing is to be sought, we suspect, in what the Administration
does or proposes from
day to day. ^
; .•
the

States, in promoting scientific

increases generally result from
requirements of higher pro¬

duction

awarded

that

continue to manage its revenues, debts, and
and conduct its
regulatory activities, so as to

"Fifth, the Federal Government contributes to eco¬

inventories

build inventory in anticipation of
possible price increases or strikes
that may

time consistent with reliabi

re-

An expanding economy requires in¬
supply of money and credit, but not on a
invites inflation in the present and possible

in the

depression in the future. The Federal Government should

■

.....

better themselves."

material

reaching

are

scale

We
See It

As

There is further indication that

purchased

..

...

.

There are,

Reporting Purchasing Agents
that

.

inflation.

or

make it clear that it believes

in

Commodity Prices
state

almost all cases,
being limited to
required

lead time

Continued jrom jirst page

Commodity prices are firm to
slightly higher, with further evi¬
dence

sion

creases

delivery to meet require— and
often the

—

slightly,

reporting

be

to

schedules

1

ported in short supply. Help hired

survey
o

is

assure

believe it should.

says in so many words
governmental programs, es¬
pecially monetary and fiscal policies, in order to restrain
and offset any tendencies that may develop toward reces¬

is

the

F. Ogden

clerical help

are

we

point of fact, the President

that "we must coordinate all

supplier who has the least lead

some

''

household" than
In

continues

In

minimum

ment

H„hnStMJn£?;
a n d areas,
unneees^fy
'for
den.
Manager indirec,t
costs. In
skilled steni

policy.

commitments

them

cause

re¬

is of the opinion that it must play a
larger part in the "management of our national

much

ing Purchasing Agents are operating on a hand-to-mouth to 60

stiffening

a

is

ent Administration

i

'■

Policy

Conservatism

ployment figures. Some, of course,
tie employment to production figures
in direct ratio.
Others are
quick

no

generally observed in developing
buying policy. 93% of the report¬

lines

many

and

unemployment

Buying

finds little change in business outlook, though new orders have
slackened slightly. Reports commodity prices firm and
slightly

A composite

to

seems

ported anywhere.

chairman, Chester F. Ogden,

new

rush

absorbed

well

been

significant

Business

Chester

Christmas

the

have

Thursday, February 3, 1955.

a

over¬

by fits

chain of

developments which is the exact.

Volume 181;-

opposite

of

dreamed

of

Number 5400

the

inflation.'

shows

ence

The Commercial and Financial Chronicle

steady progress
the advocates of

by

controlled

.

..

If

experiit shows

anything,

that

(619)

-

Dean Wilier

attempt to put such a
practice would tend
to amplify rather than moderate
the 'boom and bust' cycle."
an

scheme

into

Our

Reporter

Home

Financing Mtge. Needs Put at $16 Billion

Walter W.
Bank

Board, however, holds nation's financial

and other lenders

in

are

a

the

home-financing

nation

vestment

will

call

needs

for

the

of
in¬

of

over
$16 billion in
this year, according to

new money

institutions

credit.

Home

Loan

Bank

home loans in

$8.5 billion.

of

all

such

made

loaned

estimates

cial institutions and individuals.

made

29

tutions

by

the

H

Loan

o

m

Milwaukee Bond Club

e

Bank

Board

in

To Hold Annual

Washington,
D.

C.

is

This

believed

be

Issue

ficers

of

the

Milwaukee

ming from the
current

high

Hotel.

of

home

The

rate

building

and

the

lib¬

more

consists
W.

McAllister

W.

eralized mort¬

to

loan

be

available

report

the

demand,

of

the

said:
"The 1955
mortgage-financing
needs requires the investment of
more
than
$16 biltion in new
funds in the small home field, ex¬
clusive of approximately $8 bil¬
Board,

projection

on

lion

required for the refinancing

of

part of the present mortgage
Of the $16 billion, an esti¬

a

debt.

mated $12 billion may be

the

finance

to

required

purchase of newly

built houses and $4 billion for
ditional

loans

ad¬

existing homes.

on

"Beyond their present resources,
the nation's financial institutions
other lenders

and

in

are

strong

a

handle this need for
mortgage credit, for they will re¬
ceive during the year nearly $7
billion in monthly payments and
position

to

from borrowers on
their mortgages outstanding.
"We estimate that about 1,200,000 one-to-four family houses will

prepayments

United States this

be built in the

This compares with 1,100,-

year.

constructed

homes

000

during

1954, in itself a near-record year
the home building industry.
estimate
does
not
include

for

The

apartment units, about 100,000 of
were built in 1954.

which

"The

impetus

the construc¬

of

tion boom of last year will prob¬

higher building ac¬

sustain

ably

Harlod

A.

Franke,

ported in some places by lenders
and makers of building materials,
the

volume

heavy

of

'

L.

Grier

&

L.

Lon

Brier,

be any

Lon

the
.

Company, Inc.;
Lewis, Jr., J. P. Lewis &
Co.; Richard J. Murphy, Merrill
Lynch, Pierce, Fenner & Beane;
Fred A. Newton, Loewi &
Co.;
and
Gilbert
M.
Vonier, Paine,
Webber, Jackson & Curtis.

nounced.

Rheem

Manufacturing Company in Hous¬
and a half years, Mr.
formerly was Southern Di¬
vision Manager of that company.
that

he

with

was

ration of America's Bauxite,

mining

served in

How much

the

the

building boom.

the

3%

of

graduate

the

of

Nebraska, Mr. Ball is
Houston

the

University
a member

for

of

prefer¬

consumer

undoubtedly many
buyers will continue to purchase
such properties unless a substan¬
tial
price
advantage
in
older
develops,

homes

said.

statement

the

Easier loan terms and pres¬

high levels of individual sav¬

ent

ings enable many buyers to choose
new

houses.
the

At

end

of

debt
family homes in
mortgage

estimated

at

1954,

the

one-to-four
the nation was

about

$75

Forecasts are that the 1955

home

growth

debt will

in

the

be

greater than last year's

mortgage

billion.

which

$8.9 billion. About a third of
this debt is ..held by savings and

was

loan

associations and

cooperative

banks.
:

4,209 member savings and
associations of the Federal

The

loan




in

McGaughy

Paul
Ga.;

Atlanta,

Charles J. Allison in Birmingham,

Ala.; Jackson A. Hawley in New
Orleans, La.; and Ewing H. Brad¬
ford, Quitman R. Ledyard and C.
Herbert

the

of

Pettey, in the home office
corporation

Nashville,

in

Tenn.

F. Bleibtreu Joins

Sulro Bros. & Co.

matter of conjecture,

investors

buyers of the

are

the

that

extent

commercial

maturing 2%s, there will be

banks

power.

with

It is indicated that

sizable

amounts

exchanged the 2%s for the

new

banks

take

change in

no

large number

a

of

savings

3s,

or

deposits

have

already

way,

the

Bros.

&

120 Broad¬

Co.,

New York City, members of
New

announce

treu,

York

Stock

formerly

Bleibtreu

the firm

&
as

Exchange,

Frederick

that

Bleib¬

president

of

F*

Co., Inc., has joined
manager

of

the For¬

eign Exchange Department.
F. Bleibtreu &

stood,

will

vestment

Co., it is under¬

continue

in

the

in*

business.

Treasury obligation.

Higher Discount Rate in Prospect

Kormendi & Go. Formed
In New York

made

the

of

Company,

in

established

in

the

of

the

investment

the past

years;

who

gowan

firm

19

is

dealing

own

been
since

firm for

Edward S. Maof

head

in

has

business

1927 and head of his

will

firm

new

Kormendi who

his

to what

reserve

has

The

207

East

bers

of

become

Milwaukee

Michigan
the

continue to

balances

it would

is being done

sell
not

here.

week

U. S. TREASURY

If the Federal

Treasury bills and reduce

be out of order to

"

excess

STATE, MUNICIPAL

expect the dis¬

:

~

_

I

*17.1

and

With rlr

wo

to

PUBLIC REVENUE

r-ir^

The

>

Financial

Chronicle)

DENVER, Colo. — Lewis W.
Poole and Lloyd M. Shibata have

the staff of FIF Manage¬
Corporation, 444 Sherman

joined
ment

r*

Managem t Rosen With Simon, Strauss

Street.

Simon, Strauss & Himme, Savoy
York City, mem¬

SECURITIES

Plaza Hotel, New

bers of

the

change,

New

York

announce

Stock

that

Ex¬

Abraham

Rosen has become associated with

the

firm.

Mr. Rosen

New Hardy Partner
Hardy &
New

York

Co.,

30 Broad

Street,

members

of the

City,

Stock

York

Exchange,

to

on

Fisher

partnership.

Mabon Co.
On Feb. 16,

to

Admit

mem¬

Stock

Ex¬

change. Mr. Brussat was formerly
for many years with the Marine
National Exchange Bank.

will

in

be

New

York

&

formerly

Co.,

City,

New York Stock

to

115

to

The

Knauff

Financial

Colo.

DENVER,

—

become

has

Chronicle)

Walter

members of the
Exchange.

G.

associated

California
Building. Mr. Knauff was1 form¬
erly with the Securities and Ex¬
change Commission.
Cranmer

&

Co.,

1

partnership
Brodaway,

part¬

a

Cranmer Adds to Staff

Edward W. Kraebel

admitted

Mabon

was

Silberberg & Co.

(Special

with

associated

Company,

in

ner

Chronicle)

Street,

Midwest

last

count rate to be raised here.

MILWAUKEE, Wis.—Robert C.
Brussat

Banks

Feb. 10 will admit Cyrus S.

The Milwaukee Company
Financial

rate

by the British monetary authori¬

move

real

Robert C. Brussat Joins

with

not dissimilar

Reserve

New

The

discount

the

own

institutional

investments; and Clifford
R. Walker,
President of Merrill
Petroleums, Ltd.

to

raised

ties is

estate

(Special

England

This

(Special

Directors

of

inflation" in Britain.

1936.

be John

Bank

from 3 %to 3V2% in a move to check what is being termed "gentle

City
is

Announcement

total

on

either

The

homes with modern

equipment,

W.

office; Harold

in Hartford, Conn.;

Faust

Houston

mendi

new

a

bought and will continue to add to their positions in the longest

the Houston Club and the
Country Club.

Club,

To

purchasing

or

commercial

have

Executive

Sales

3% bond will be

new

bond for the

deposits
of

A

the

bond there will be that much less money available to finance

new

cer.

of

E.

which would have gone into mort¬

but in the amount in which non-bank

Naval offi¬

as a

of the money

gages will go into

the Pacific theatre dur¬

ing World War II

respectively, in

the New York City

40-year bond will result in a real exten¬

preferred

and

department

stock department,

Sutro

Cali¬
He

subsidiary.

and Ira B. MacCulley,
of the firm's municipal

Volume of Credit Curtailed

Henry J. Kaiser interests in Cali¬
fornia and the Aluminum Corpo¬
fornia

bond

maturity

ton for two

Ball

to

Jr.

ter,

managers

tightening operation of the Federal Reserve Board
was
given considerable help by the refunding of the Treasury,
because the fact that the government used a long-term high coupon
bond as part of the over-all operation tended to push up yields of
all interest bearing obligations. In view of the nature of the issue,
there appears to be no doubt now that he Treasury is working
hand in glove, with the monetary authorities in bringing pressure
on
the money markets in order to'influence the trends in the
stock market and the mortgage market.

HOUSTON, Tex.—Louis C. Ball
joined Rowles, Winston & Co.,
City National Bank Building, R.
R.
Rowles, .President,
has an¬
the

the

Ralph

—

poration. They are: Frank E. Car¬

The money

has

with

of

Tenn.

Street, announced the election of
nine vice-presidents of the cor¬

commercial banks, there will not

which is one thing the Treasury has been
trying to carry out. The new 3% bond due Feb. 15, 1995 is a
straight maturity obligation and is the longest term issue which
the Treasury has floated since 1911, when a 50-year maturity was
put out by the government to pay for the Panama Canal.
sion

'

Owen, President of Equitable Se-^
curities
Corporation, 322 Union

deposits or purchasing power is concerned.

a

'

Eleds Nine V.-Ps.

offering by

The issuance of

issue.

Rowles, Winston & Go.

Associated

as

'

•

NASHVILLE,

the Treasury of a 40-year 3% bond in ex¬
change for the 2%% bond was not entirely a surprise, even though
the financial district had been talking mainly about a 30-year
The

Louis G. Ball With

pace

Because

ence

far

as

Brew-Jenkins

advance

year."

change

•

•

Equitable Sees. Corp.

Debt Structure Extended

John P.

Prior

1

new

Co.; Fred D. Jenkins,

despite a possibly York City, to continue the general
in the latter part of investment business of John Kor-

indicated,

These

notes.

automatic1

to

operation.

15

the near-term maturities by the

M.

Brenton

planning by builders and advance formation of the firm of Kormen¬
loan
commitments
by financial di &
Co., Inc., with temporary of¬
institutions will bring the increase fices
at
60
Broad
Street, New
slower

Feb.

certificates due

1%%

maturing

Inc.

Vice-President:

2%

1955, stimulated by the new pro¬
While increased vacancies are re¬

the

of

owners

manual

from

tern
dial

1V2% notes due March 15 had the option of exchanging
these securities for either the 13-month 1%% notes or the 2V2-year

Rupple, Robert W. Baird & Co.,

tivity through the greater part of
visions of the housing act of 1954.

or a

and the

Governors:

McAllister, Chairman

and to finance the major
portion of its large extension program, which includes the,convert
sion of its entire telephone sys-1

pany

.

refunding issues will appeal to those who
must have near-term obligations for liquidity purposes.
Also in
the amount which the maturing obligations are exchanged for

added.
Walter W.

"The

presented

of:

President:

recent years.

will

funds

the

meet

officers

of

The Milwaukee Company.

loan terms of

gage

But

slate

.

ing will be used to retire out¬
standing indebtedness of the com¬

of the 27/ss the option of either
13-month 1%% note. Under this refund¬
ing plan the government will have outstanding a real long-term
bond which will appeal to investors who are interested in putting
funds to work for an extended period of time. This two-way offer
to the owners of the partially tax exempt 2%s of 1955/60, is the
most significant feature of the refunding operation, which will
result in the refinancing of nearly $15 billion of maturities.

Bond

Club will be held Monday, Feb. 21
at the Skyroom of the Plankinton

v

proceeds from the financ¬

The

Appeals to Long-Term Investors

40-year 3% bond,

a

$2,000,000

bonds,

and

1955.

of the new 3% bond.
VV-V. \

41/2%

amount have been de¬
$2,000,000 are to be
delivered not later than June 30,
livered

The Treasury offered holders

Meeting

nual

stem¬

also among the important buyers
/' -.v 1
W

the

Of

principal

offered in exchange for the

..

MILWAUKEE, Wis. — The an¬
meeting and election of of¬

to

record

a

figure,

were

'

■

5V4%

mortgage

Witter & Co.

maturing l%s and IV2S were also well received, with the 21/2-year
2% note reportedly having been taken by a great many of the outof-town commercial banks. Indications are that these same insti¬

public

Jan.

on

general

500,000

bonds, due Oct. 1, 1964. The fi¬
nancing was arranged by Dean

issue.

The other securities which were

by finan¬

year

3%

new

money

preliminary

during the

41/2%

various outstanding Treasury obligations, especially
the 2%s, with an eye towards the building up of holdings in the

amounting to

$4,000,000 first mortgage bonds
series, due 1979, and $1,-

of

the

among

This is equivalent to

37%

some

System

1954

government market is in the process of getting adjusted
refunding operation of the Treasury. This is a normal occurance when the Treasury is exchanging maturities for new obli¬
The

gations. The 3% bonds with the 40-year maturity was well received
by the money market, and not a few government specialists see
in this new bond a very fine issue for investors who are looking
for a distant maturity.
There has been considerable switching

strong position to handle this need

of mortgage
The

phone Co. has announced the pri¬
vate sale to institutional investors

CHIPPENDALE, JR.

to the

McAllister, Chairman of the Federal Home Loan

Tele¬

Nevada

Southern

The

By JOHN T.

Arranges

Private Placemen!

Governments

on

23

C.
C.

Russell Lea

Russell

Lea, associated with

Reynolds & Co., passed away sud¬
denly Jan. 28 at the age of 56. = .

Aubrey G. Lanston
& Co.
INCORPORATED
15 BROAD

ST., SEW YORK 5

WHitehall 3-1200
231 So. La Salle St.

45 Milk St.

CHICAGO 4

BOSTON 9

ST 2-9490

HA 6-6463

Financial Chronicle... Thursday, February 3, 1955

The Commercial and

(620)

241

Present arrange¬
medical care, how¬

Federal grants.

Health Reinsurance

President's Message on

ments for their

Federal aid to

Special

Eisenhower
to
Congress on Jan. 31, in which he
renewed his request for a broad
program of health
improvement
services, along with a proposal for
President Dwight D.

submitted

special

a

plan in aid of pri¬

reinsurance

a

vate health

message

cial

Congress

States:

is

tional

of

our

'*■

a

'

'

na¬

healthy
more

warding,

more

a

not

its pro¬

covered can be given

particularly rural areas
where group enrollment is at pres¬
tection,

health insurance can
improved by expanding
the benefits provided.
Not all private expenditures for
medical
care
can
or
should be

neverthe¬
policies offered today
insurance;

by

many

They are

too limited in scope.

Reinsurance Service to encourage

private health insurance organiza¬
tions in offering broader benefits

all

people.

lies and

have diminished. During the

past year, important progress has
made

diseases
blood

in

dealing

with

rheumatic

as

fever, high

Intensified

produced

than

ever

such

poliomyelitis and

pressure,

tuberculosis.
has

improve medical
aged, the blind, de¬

In addition, to

infectious dis¬

been

to more people.

coverage

Eisenhower

Pres.

fami¬

and

individuals

insured

to

Deaths from

eases

research

knowledge

more

before about the

of heart disease and

cancer.

pendent children, and the perma¬
nently and totally disabled who
are
public assistant recipients, I
recommend the authorization of
local

and

state

grants to match
expenditures.

Federal

limited

The

Reinsurance.

purpose

of

is

to

proposal

reinsurance

the

Eighty-third Congress, dur¬
the last
legislative session,

the

for

care

sources

The

broad shar¬
health insurance or¬
ganizations of the risks of experi¬
vocational rehabilitation. By 1959, mentation.
A system of this sort
consequently, we should be re¬ will give an incentive to the im¬
storing to useful lives most per¬ provement of existing health in¬
sons
who become
disabled
and surance plans.
It will encourage
who can be rehabilitated and re¬
private, voluntary health insur¬
turned to employment. In human ance organizations to provide betterms, this will be a heart-warm¬ ter
protection — narticularly
ing achievement.
against
expensive
illness — for
ing

supported dramatic

The

1954

in

amendments

another

opened
the

national

health.

the

to

help
for

build

better

health

for

centers

to

facilities

care

ill;

of

to

to

in

aid

nursing

homes;
patients

hospital

make

made

and

provide

diagnostic and treatment

more

need

for

was

chronically

construction

convalescent
for

drive

provision

the

the

chapter

new

Under these amendments,

further

centers

rehabilitation

who
and

care,

available
of

the

furnish

ing

do

not

help

to
for

the

disabled.

those who now

These achievements represent a
future welfare of countless Amer¬

to

do

who
could

not

full

ca¬

disability throughout the land.

The

tfyan
to

nation,

a

now

lies

reduce

the

of

Many

are

within
impact
fellow

our

afford

cannot

we

to

pay

our

of

power

disease.

Americans

the costs of

from

Welfare

and

the

frequently

the
local
hospitals,
nursing homes required
for the prevention, diagnosis and
or

treatment of disease either do

exist

or

are

badly

out

of

its

in

sound

effort

reinsurance

there are critical short¬
ages of the trained personnel re¬
quired to study, prevent, treat and

Finally,

control

The

that follow

this

are

three-fold

most

provides
method

a

of

perfect

program

carriers.

surance

no

a

—

a

Gov¬

The

time

has

to

put such a program to
work for the American people.
come

the Congress

urge

reinsurance

by authorizing

to launch
this

year

reasonable

cap¬

service
a

ital fund and by
use

as

broad

providing for its
to reinsure three
for expansion in pri¬

necessary
areas

vate

health insurance:

voluntary

m

ing

against the high
or prolonged ill¬

protection

costs

of

severe

ness.

[2]

in

families

plans provid¬

for individuals

predominantly

and

rural

areas.

designed to meet

primarily for coverage of individ¬

deficiency.

uals

Americans, insurance
voluntary insurance—
sound and effective
meeting
unexpected

and

hospitals,

the

nursing homes and other

clinics,

facilities

technical

families

of

average

against medical

or

care

otherwise

or

struction

or

not

con¬

equipment.
of

methods

Present

in

deficient

financing

in

satisfactory

always

meeting this problem. Many spon¬
sors and operators are un able to
quality for grants under the re¬
cently extended Hospital Survey
Construction

and

difficult

Sponsors
often find it

facilities

health

of

Act.

obtain private

to

capital

other

In

insured

Government-

fields,

the
required in

produce

helped
struction

national interests.

developed

Government

used

to

the urgent

by such

cedures

suc¬

guaranttee

these should

now

be

stimulate construction

of

as

therefore,

recommend,

that

the

Congress authorize the Sec¬
retary of Health, Education, and
Welfare

to

for

insure

small

a

premium, mortgage loans made
by private lending institutions for
construction

the

health

of

the

limiting
than

the

and

face

by requiring that a mortgage

loan, to be eligible for insurance,
must

be

for

less

value

of

the

property.

the

full

The

au¬

than

thorizing legislation
should,
of
course, include any needed safe¬
guards against the encouragement
of substandard or unsound proj-

ance

recipients.

persons
now

capacity of the individual to bear.

under

as

care

in

the

receiving
state

for

more effectively
to their
needs if the separate Public

grams
own

Health

Personnel

Health
Whether

bined into

public health programs
for special projects looking to
development
of
improved

existing
and
the

the

community or for the individ¬
ual—at problems of research, pre¬

United

public

programs

5,000,000

States

are

assistance
aided by

institutions

in

care

as

many

Juvenile Delinquency

vital part of

a

health

serious

a

the

to

states

attack

our

and social

lem I also recommend

them

enable

to

on

prob¬
grants

new

strengthen and improve their

to

pro¬

tion.

As

ing the limit of its ability to ab¬
sorb
air
pollutants with safety
I

recommending an
appropriation
to
the
am

increased

Public Health Service for studies

seeking necessary

scientific

effective

more

data

methods

of

control.

for water

pollution control

As

programs.

our

tensified research in water pollu¬
tion

needed as well
authority for the

is

problems

continuing

Public Health Service to deal with

The present Water

these matters.
Pollution

Control

June

1956.

30,

should

date

agencies concerned

delinquency,

juvenile

for

training of personnel, and for spe¬
cial research and demonstration

projects.

of

■

>

,

disease

mankind,

disability

dition

.

Aspects of Health

of

half

For
and

■

•,

.

International

are

normal con¬

a

incalculable

This

life.

not

only causes poverty
distress, and impedes eco¬

burden
and

nomic

development, but provides
field for the spread of

fertile

Nations is exerting

of the United

leadership in a coopera¬
world-wide
movement
to¬

forceful
tive

merits

support

tion

Our contribu¬

the World

Health Organi¬

should

raised,

to

zation

of

part

the

on

States.

the United

program

and growing fi¬

adequate

nancial

Its

health.

better

ward

the

effort

the

bondage

be

release

to

from

through

disease

of

that

so

men

cooperation may be

international
increased.

m
Provide greater assistance to the

as

state

of all

The World Health Organization

industrial

of

result

a

growth and urban development,
the atmosphere over some pooulation centers may be aoproach-

and

for coordination

state and local

with

for

assistance

be

planning,

communism.

[31
Step up research on air pollu¬

Act

expires

on

This termination

be

be strengthened.

Service

the

to

the

broad and
offensive against

represent a

coordinated

of the problems which must
better

many

be solved if we are to have

health

for

the

All

America.

stronger

a

recognize

proposals

the

primacy of local and state respon¬
sibility for the health of the com¬

They

munity.

encourage

private

with private funds. With
the cooperation of the states and
effort,

medical

the

they can

profession
for

basis

the

form

better

health

for all.

DWIGHT D.

EISENHOWER

The White House,
Jan.

31,1955.

Health

Pubhc

establish

to

for both

recommendations

These

Congress

the

and

removed

[5]

problems in terms of services for

the

possible.

as

As

a

techniques.

Authorize

health

at

of

institutional

cases

single, unified grantIn
addition,

a

separate funds should be provided
for extension and improvement of

Needs

look

we

pro¬

project

They
would
also
search out ways of reducing the
length of stay and the necessity

structure.

in-aid

traineeshins

Joins Salik Staff

graduate and specialized

(Special

training in public health in order

The

to

Financial

Ch;:onicle)

Calif. —John A.
vention or treatment of disease—
Cleland, Thomas M. Cunningham,
personnel.
we
find that supplies of trained
Jr., and Charles E. Salik have
[6]
personnel are critically short.
joined the staff of Salik & Co.,
Strengthen the Public Health
The Administration's legislative
Orpheum Theatre Building. Mr.
Service Commission Corps by im¬
Cleland
and
Mr.
Cunningham
program for this year therefore
proving its status and its survivor
contains
were
formerly with
Merrill
proposals addressed to
crucial

areas

These

ages.

possible

health

in

are

nurse

recommend

I

program

a

aimed at
personnel:
five-year

of grants to state voca¬

education

agencies for
nurses.
Second,
an
expansion
of

training practical
recommend

Health

Service

operations

to establish

traineeships for grad¬

uate

in specialities such as

nurses

nursing service administration,

addition,

my

Lynch, Pierce, Fenner & Beane.

a

the

for

Care

sents

mentally

ill

(Special

in

as

we,

rehabilitation.

We

programs

are

know

now

that effective preventive

I

and

recommend,
intensified

attack

and

con¬

possible in the
therefore, new
in our
illness.

These

Henry

B.

uel

Public

Children's

Health

Bureau

of

Service, the
the

Social

Security Administration, and the

Franklin

D.

Gallop,

M. Levy

Alfred

have become affiliated

with Sam¬

& Company,

215

West Seventh Street.

Strengthening of present aid to
community programs for
detection,

early

alleviation
tional

-

Merritt & Co.

i

(Special

to

The Financial

of

and

control

mental

and

emo¬

and William H. Hover

the

staff

of

Chronicle)

Mo. —John

Raymond

Brosnahan,

state and

the

With King

J.

Dale,

W.

have joined

King Merritt

& Co.,

Inc., Woodruff Building.

derangements;

Gerald W. Caner

[21
The

and

Lee

SPRINGFIELD,

[11

ent

- -.

Gerald

Breithart,

R.

measures

mental

on

recommenda¬

Public Health Programs

Chronicle)

Calif.—Samuel

field of mental health.

tions for the revision of the pres¬

public health grant programs
authority for the esta¬
blishment of
traineeships in all

Financial

LOS ANGELES,

a

are:

include

The

to

the

past few decades
people, begun to
regard mental and emotional dis¬
orders
as
capable
for
specific
diagnosis, alleviation, cure, and

trol

Samuel Franklin Adds

pre¬

special set of problems.

Only

have

DIEGO,

Health

Mental

areas,

programs.

proposals

shortages

tional

particular

short¬

advances

in

Two

personnel

hold the key to other
and improve¬

moreover,
ments

benefits.

of

SAN

to increase the numbers of trained

public assist¬

Nearly

grants were com¬

Service

act should

ec^s.

mental health.

well

as

public

pooulation
grows and demands for water in¬
crease, and as the use of chemi¬
insurance to
less cals expands, our water supoly
amount of the loan problems become more acute. In¬

continuing responsibility of
and of the lending
institution should be preserved by

office

Medical

health services.
The states could adapt their pro¬
for

funds

facili¬

ties.

The

greater flexibility in the

by the states of Federal grant

use

stales

the mortgagor

new

themselves.

should

m
Permit

health.

additional health facilities.
I

for these activi¬
special projects de¬

for

a

health

signed to develop improved medi-- grams and services for the pre¬
cal
care
techniques
both
for vention, diagnosis and treatment
of delinquency in youth.
There
mothers and for children.

con¬

new

The tested pro¬

cessful

programs

provided for extension

be

consistently

have

loans

ministration

for

requiring
special
services.
Separate funds

and

for construction.

public health specialties, including

physician's
in the hospital.

To this end, I

children

for

of

mental

of

in mental institutions and the ad¬

[1]
present

Improve

Authorization
gram

re¬

state and

the Congress to take the fol¬

urge

pa¬

[3]

grants.
Such projects would aim
at improving the quality of care

lowing steps:

re¬

quired for the protection of the
people's health.
In other com¬
munities structures are antiquated

costs in the home and

hazards which may be beyond the




lack

today

modern

In

m

made, more

local health needs.

ties

teaching and research.

Health insurance plans designed

activities

sponsive to changes in

mental

of

care

ate

and improvement

Facilities

Many communites in the United
States

Public

insurance

coverage

Children's Bureau for aiding s
health

for

tients; and

be

should

agencies

strengthened, and the programs of
the Public Health Service and the

should

I

Health

ing

these

of

available

All three

nation's health.

our

health

Stimulating Construction of

First

insurance plans provid¬

Health

lower income

For

to

recommendations

Meeting the Costs of Medical Care

—private,

been

subsidy and no Govern¬
competition with private in¬

disease.

specific

has

which involves

program

not

date.

of

deprived

children

and

parental care.

professions, and
other interested citi¬

and

clinics,

blind

health

many

zens,

medical

care
when it is needed,
they are not protected by
adequate health insurance.
Too

who
health

Department of Health, Ed¬

ucation,

the

doing less

purchase,

working with specialists from the
insurance industry, with experts

I

The Immediate Needs

As

to

but

have,

now

afford

insurance.

ment

illness and

private

insurance plans
of' additional people

millions

to

ernment

our

of

extension

stimulate

voluntary health

icans—in the health of both mind

represent

of

hazards

illness. Reinsurance will also help

and body. Recent advances do not,

wage war on

insured against

are

financial

the

of

some

of

Administration

Drug

skilled and vigilant guardians

grant-in-aid
categories—the aged, the perma¬ programs providing services for
nently and totally disabled, the mothers, for crippled children and

among

with

major gain for the immediate and

however,
pacity to

system for

a

strides in

new

Hospital Survey and Construction
Act

rate

each

be

recommend, consequently, the
establishment of a Federal Health

the

of

health

The sepa¬
matching
should apply to
of the four Federally aided
recipients.

Existing

also

I

bettering

expenditures for the
care
needed by public-

assistance

are

continues

sep¬

state

of

local

and

time.

na¬

matching

Federal

Health

principally for hospitalized illness
and for relatively short periods of

its advance in

its

Moreover,

people who are

many

Fortu¬

nately, the
tion

insurance.

great

are

happier

lives.

government should cooper¬
ate with, and encourage, private
carriers in the improvement of

less,

re¬

productive
and

The

authorize

it

that

therefore,
arate

medical

prise.

covered

Americans

live

imaginative American enter¬

and

the scope of

c o n-

cern;

vigorous

ent difficult.

its people, their gopd

nation is in

proper

United

the strength

of

Because

health

the

cf

.

through group action

is in the best tradition of

now

follows:

message

the

To

recommend

I

health

organizations:

The text of the President's spe¬

must be made.
to the Congress,

persons

Risk sharing

needy

these

for

services

health

plan.

adequate.
improving

far
from
provision for

are

ever,

Congress he renewed his program for
private health organizations under a reinsurance

In special message to

and

Food
are

Increased budgetary support

for

training activities which are now
authorized, so as to increase the

number

of

qualified

personnel

Gerald

Penington,
away

W.

Caner,

Colket &

Jan. 18.

partner

in

Co., passed

Volume 181

Number 5400 ...The Commercial and Financial Chronicle

become

leaders

inside

and

of

out

the

Iron

Curtain

approached the basic problem involved.

have

Cites

not

short

Seldom

in

history

been honored

man

community
honored

of

me

has

living

this famous

as

even

winner

cide.

Los

Angeles has
today. < You have

.

etched

•

in my

heart
f

un-

an

rgettable

o

of

memory

triotic

pa-

fervor
national

and

devotion.
have

You

aroused
indelible

a n

emotion

gratitude
I

am

to

of

that

/unable

express

adequately
words.

the
Douglas

MacArthur

of

reality

enables
to

apply

appraising perspective; to un¬
that your action springs

derstand

*rom a desire to

n°*

tttp

nrrSJm
f
proclaim a

people's adherence to
ideals long ago fabricated into the
warp and woof of what is called
the American way of life.
That

have chosen

you

this rich

to

me

symbolize

heritage of principles is

honor which makes

an

feel far

me

greater than
my name

any just merit; that
should stand for the mil-

lions

of

unnamed

faith

and

mortal way

ioned

others
others

built

courage

the

from which
true

whose
whose

the

fash¬

was

greatness

im¬

of

our

country creates within me a feel¬
ing of humility far in excess of
all

possible

pride.

the

revere

stars

than

more

It

in

makes

me

flag

far

our

stars

any

on

my

shoulders.
I

am

so

wished

grateful to all who have

birthday greetings.

me

I

you

again

name

"old soldiers
to

keep

pected

on

to

thank

■

and

her

again

never

— and,
as
die," I promise

ballad

of the battlefield, to find the

fountain
we

is

youth.

might if

And,

indeed,

only understood
said, that youth
not entirely a time of life—it

what

is

of

a

the

we

poet

state of mind. It is not

matter

wholly

of

ripe cheeks, red lips
or supple
knees.
It is a temper
of the will, a quality of the imag¬
ination, a vigor of the emotions,
a

a

freshness of the

life.

It

means

predominance

timidity, of
ture

an

old

temperamental

a

of

courage

over

appetite for adven¬

love

over

deep springs of

by

of

ease.

Nobody

merely

living a
People grow
old only by deserting their ideals,
Years may wrinkle the skin, but
to give up interest wrink'es the
soul. Worry, doubt, self-distrust,
fear and
despair—these are the
long, long vears that bow the head
grows

number

and
to

of

years.

the growing

turn

spirit back

dust.

in every

your

years,

there

is

being's heart the love of

wonder, the undaunted challenges
of

events,
•An

the unfailing childlike

address

Gen. MacArthur at a
banquet sponsored by the Los Angeles
County Council of the American Legion
on

the

by

dedication

of

a

monument

to

the

General, Los Angeles, Cal., Jan. 26, 1955.




old

as

as

are

old

as

as

your

hope,

your

chamber;

as

cheer

and

you

all

ered with the

and

the

as

re¬

wires

heart is

your

are

cov¬

of pessimism

snows

the ice of cynicism, then, and

then only are you grown old

then,

indeed,
just fade

you

the

as

and

ballad

the

says,

away,

Many in this brilliant audience

beginning.
it

of

all

How,

currence.

did such

horror and,

its

against

its

re-

ask ourselves,

we

institution become

an

so

existence?

enough
ml

It started

way as a sort
,1

ma

ial

it

in

in

modest

a

J!

—»

of

our

of gladiator-

/!

^

method

to

grown

factor

settling

A

amples

is

David

the

and

biblical

Goliath.

story

Each

of

of
the

*

•*_

two

contesting groups selected its
champion. They fought and based
upon the outcome an agreement

resulted.

small

Then,

time went

as

professional

on,

wave

living beyond
dreamed of by man.

ever

lars,

in

spent

now

mutual

reduce

the

that

mountable
probable

even

this; it would at

international

seem

insur-

so

to matters of

now

one

solution.

more

For

J

«

J

«»

1

~

1

^

!

accepted

ensuing

the

as

through

;

j

of

more

itarian

autocratic

or

lace

it

now

the nation in

individual

an

and

precarious total-

finally engulfed all.

It

is

or

war

rule.

The

I

the turn

At

I

entered

was

one

end of

a

of the

the

Army,

bavonet

or

target

casualty

enemy

rifle

the

at

the

sword,

or

You

explosion
of

to

reach

thousands.
other

and

into

more

1

dream

that

once

abolition
of

of

been

al¬
has

war

man

for

cen-

to

that

proposition

every

has

at

say

the

promptly discarded

cynic,
the
its

pessimist, every ad¬
swashbuckler in

every

venturer,

every

has

world

disclaimed

always

processes

feasibility.

the

sides

It is the one

only decisive one

the

interests

both

of

completely parallel. It is the
issue which, if settled, might

settle

others.

all

has

Time

between

generally

are

agree¬

nations

modern

honored

longer

no

valid unless both profit there-

from.

both

But

when

trusted

both

upon

now

no

do

longer

no

whether true

argue,

be

can

profit. It
problem
relative integrity. It
longer convincing to

becomes then

based

sides
a

that

not,

or

cannot trust the other side—
that one maverick can destroy the
herd. It would no longer be a
depending

matter

trust

upon

4 4-rt/-vl 4-

A

4-

/J

n

■»

v\ A

r«

But

that

be¬

was

of

world

the

would

the

be

a

destruction

character has

never

theological

would

reality.

a

was

that hureached

development

the

permit

idealism.

which

application

the last

In

of

two

of

sciences.

that

to

the

nation

issue—each

would

But

now

the

so

profit that it could not fail eventually to comply. This would not,
of course, mean the abandonment
of all armed forces, but it would
reduce them to the simpler prob¬
lems of internal

inter¬

order and

national

police. It would not mean
one fell stroke, but it
would mban that the great road¬
Utopia

at

existing

now

of

the

develop¬

to

human

race

would

have been cleared.
The present
threat

annihilation

The one, a complete

sions.

the

on

tensions with their

national

of

that

the

preparing
sooner

And

belief

of the Soviet world
capitalist countries are

part

or

the

them;

attack

to
later

the

that

intend to strike,

we

other, a complete belief
part of the capitalistic
are

pre¬

side

would

of

desirous

equally
either

concerned,

are

the

other

nothing but disaster.

mean

equally

tyemendous [constant

For

peace.

with

war

is

dread

it.

But

the

acceleration of prepara¬
well, without specific

and

other

of

intent, ultimately produce a spon¬

tion has suddenly

feverishly in dark laboratories to

lem

find the means to destroy all at
blow.

sideration

annihilation—this
0f

cess

the

sides

winner

and
one

differences.

it

both

to

victor

had

for the

whose

issue. This is

to be

by

as

decision

survival

is

of
the

true of the Soviet

impossible for the

sie'e—as true behind the Iron Cur¬

own

clearly

masses

no

sice of the world as of the free

it

into

any¬

disaster.

World

War,

wittTitTnow antiquated'
ments,

the

is

oppon-

matched

translate

second

The

even

to

bear

in

other

be

in¬

side

did

Ac¬

years.

is promptly matched

by reaction from the other.
We

50

or

end?

must go on in¬

we

at present—some

as

years

the

told

are

definitely

say

With what at

more.

None

say—there is no
definite objective.
They but pass

along

to

search

for

at

end,
the

the

exactly

those

face

we

that

final

a

the

follow

solution.

the

And,

problem will be
as
that which

same

Must

now.

live

we

for

ishment of accelerating prepared¬
ness
without an announced final
purpose or,

as

alternative, sui¬

an

cidal war; and trifle in the mean¬

while

with

corollary

terminate thesis

tion

of

the

of

which

limita¬

as

restriction on
power, adop¬

nuclear

legal standards

new

pounded

inde¬

and

such

—

armament,

use

tion of

at

Nuremberg

as pro¬

of

all

—

but

palliatives and all,
of which
in varying form have
been tried in the past with negli¬
gible
results?
Dangerous
doc¬
are

tain

as

j

l

t

in front of it. The ordinary

battlefield

•

j

.* j

I*

_

_

_

.1

tained at least

nation

War
I

am

that every pundit in

sure

cynic and hypo¬
crite,
every
paid
brainwasher,
every egotist, every troublemaker,
and many others of entirely dif¬
ferent mold, will tell you with
mockery and ridicule that this can
-be only
- — it
- a dream—that
is ■butthe world, every

the

vague

George

imaginings

But,

sionary.

people of the world, whether free
or slave, are all in
agreement on

once

as

of

David

a

vi-

Lloyd

said in Commons at

the crisis of the First World War,

this solution; and this perhaps is

"We

the only thing in the world they

under."

large

do agree upon. But it is the most

we

must

can

go

And

on

the

if

or

we

will

go

great criticism
make of the world's lead-

the

it

is

of

name

temporarily by any
prepared to yield

its freedom principles.
at any

But peace

price—peace with

ment

with

peace

—

appease¬

the

passes

dreadful finality to future genera¬
tions—is

a

end

can

sham

and

only in

war

of

peace

shame which

slavery.

or

I recall

when

Constitution.

new

and

that

ones

vividly this problem
the Japanese in

so

faced

it

their

they

know

They are
the only

are

by dread

the fearful effect of

ence

nihiliation.

experi¬

mass

an-

They realize in their

limited geographical

caught

area,

sort of no man's land between two great ideologies, that
to engage in another war, whether
up as a

on

the

winning

the losing side,

or

would spell the probable doom of
their

old

Shidehara, came
urged
that to save

and

me

to

wise

Minister,

themselves

they

abolish

should

international

an

as

war

their

And

race.

Prime

instru¬

When I

agreed, he turned
said. "The world will

and

me

laugh and mock

us

visionaries,

a

from

but

now

impractical

as

hundred

will

we

be

years

called

prophets."
Decision

A

Sooner

Plan to Abolish

a

in

all

—

Peace, indeed, can be ob¬

peace.

or

Must

Be Reached

later

the

world,

if

reach this
decision.
The only question is,
when?
Must we fight again be¬
it

:aders Lack

that

arma-

demonstrated

in¬

in like proportion.
the truth is that the
strengths
of
the
two

tion by one

taneous combustion.

sp4ritual
abreast

It

may

con¬

learned phi¬
ecclesiastics but a

hard

core

it

ethical equation

an

losophers

thing but his
The

realism.

destroyed

destruction

to

brought

and

of war being a
practical settlement of

closely

makes

moral and

solely

invention—has

of

as a

scientific

longer

destruc-

takenXhe prob-

from its primary

away

question
of

potentials

pondered

international

the

suc-

possibility

medium of

ents

very

would

the

change little with the

ment.

masses

with

tifie

if

and

—

of victory if

increase

relative

the

tion

But, this very triumph of scien-

not

Actually,

to

(of nuclear

one

contestable

paring to attack us; that sooner or
they intend to strike. Both
are
wrong.
Each side, so far as

later

present evolution

work

doubtful

changes

comes—which

war

realists;

kept alive by two great illu-

are

ai(idT )Both

arts

the

of

great

denominator which would insure

on

mass

argument then

pared

we

is

the

creases

n

and

hands

which

—

—

countries that the Soviets

man

i

have raised the destructive poten¬
tial to encompass millions.
And

restless

the
pre-

generations under the killing pun¬
that

shown

made

electronic;
science

for it is the

which both

upon

which

—in

which

upon

agree,

profit equally.

issue—and

men.

common

fore the science of the past decade

by the atom I thousand years its rate of change
the hundreds has been deplorably slpw, corn-

Nov/,

can

issue

one

will

ment

impossible and fantastic. Every

pure

thousands—followed

will

the

been

the aerial bomb to strike by the

the machine gun

Abolish
of

position

falls

civic perspective.

though

designed to kill by the dozen. After
that, the heavy artillery ra'ning
death upon the hundreds.
Then
came

the

and

induce

We Can Ban War

The

Then

face

not

They increase

paredness by alliances, by distributing resources throughout the
world, by feverish activity in developing new and deadlier weaponSj by applying conscription in
times of peace—all of which is

it is

may seem,

issue

one

iboth sides

block

as

century, when

masses—

influence to

magistrate

proper

end

Evolution of Arms
Within the span of my own life
have witnessed this evolution.

the

to maintain peace.

threat

this
chief

turies

arms.

over

virture of his

From
popu¬

dares

but

real problem.

All

gravitates

^

Government

thus render

rate of in-

small

a

around

on."

go

merely

propose

ui..

leaders

of

strength

always accelerating.
percentage of the

crease

the

increase

and

of the forces with the

an

then

a ves,

an

character

of

from

the

is

record

the

basis

And

peace.

down

on,

the

is

it

truth.

J

resulting therefrom—is largely by

corner

as

by all

It

take an¬

simple

this

known

now

until

of destruction to

But, strange

j

fought

obsecure

they

plan which

a

"to

us

the self-interest of each nation trines, too, appear — doctrines
outlawing war would keep it true which might result in actual degoods and people, of foreign aid to itself.
And there is no in- feat; such doctrines as a limited
and, indeed, of all issues involv- fluence so potent and powerful as war; 0f enemy sanctuary, of fail—f
ing
the
application
of
armed self-interest. It would not neces- ure t0 protect our fighting men
force. It would have equally posarily require international in- when captured, of national subtent
political effects.
It would spection of relative armaments— versive and sabotage agencies, of
V,._
reduce immeasurably the power the public opinion of every part a substitute for victory on the

the socialistic and paternal trends

some

enable

tion, of nuclear development for
industry, of freer exchange of

armies replaced the. individual
champions. And these groups

in

them

to

prove

we

dominance
by major
of Universal Military
Service, of unconscionable taxa-

raised.

place

It may

other cataclysm

rearmament of preventive

of

take

cannot

is abolished.

war

is

growing and dangerous control by

of the world and victory or defeat

zation

instance,
the complex problems of German
war,

the

United

advance in the evolution of civili¬

as

It would accomplish

of

the

of

do they dare to state the
truth, that the next great

bald

globe.

than

halls

Never

ments

more

the

or

Nations is the real problem

pre-

known

groups

as

chancelleries

world

paredness could conceivably abolish poverty from the face of the

~

disputes

between conflicting tribes. One of
the oldest and most classical ex¬

it

—

The hundred of billions of dol¬

powers,

vital

not

the

anything

satelite

has

How

most

re¬

bring security—
only create new

is their lack of

ers

will

25

despair or raise our hopes to
Utopian heights over the corollary instantly matched by the prospecmisunderstandings that stem from tive opponent. We are told that
JJ16 threat of war
but never in this increases the chances of peace

one

vilization?
the

the

public demand. They debate and
turmoil over a hundred issues —
they bring us to the verge of

are

integrated with man'slife and cibe

which

from

prosperity that would raise the

stroke

hope

one

The
The
disease of power seems to confuse
and befuddle them. They have not
even approached the basic problem, much less evolved a working formula to implement this

vital and determinate of all.
leaders
are
the
laggards.

world's standard of

tensions

in

at

spiritual values
would produce an economic

comrades-in-arms in the

war

lift

and

used-to-be.

have

in
on

mankind

and

would

moral

of

They

would

Sermon

It would not only

fear

move

my

veterans,

out¬

advance

would

It

it

so,

the

the darkest shadow

days

known

sui¬

clearly

greatest

engulfed

were

as

contains

double

If

since

Mount.

has

of

When

and

has

world?

the

mark

stroke

beauty, hope,
courage, so long are

young.

down

a

power

feasible arbiter. The

a

civilization

self-

it

as

it

—

of

germs

as

the

fear;

old

as

long

so

messages

enormous

Whatever

the

You

as young as your

ceives

appa¬

rently counts on us, those old sol¬
diers who have escaped the carn¬
age

ing

living as though I ex¬
live forever.
That fa¬

barrack-room

mous

in

you

faith,

your

and

despair. In the central place
of every heart there is a record-

constant

of that gentle Virginia lady,
on
this
her
mother,
day.

next,

whereby

great question is—does this mean
that war can now be outlawed

your

in

of good¬
brightened the

eyes

Thank

young

have

wou'd

as

confidence,
as

what

game of life.

doubt;

* your

expressions

will

my

young

was

such

know

as

Yet,

life
me

an

in

for

duel

a

Science

moded it

arms.

joy and the

of

the

rather

from

appetite

the

in the sun—
can
be gained.
If you lose, you
are annihilated.
If you win, you
stand
only to lose.
No longer
does it possess the chance of the

world,

by force of

it

international

to

cut

is

longer

wealth—a place

and

weakness in "collective security," and concludes that what¬
ever betides the ultimate fate of the Far
East, or the
will not be settled

No

of adventure

weapon

inherent

an

Frankenstein to destroy

a

sides.

both

on the Mount.
Says there is
victory in war, and injuries inflicted on an enemy return
injuries to ourselves. Holds a ban on war is possible, but

as

country

own

billions of dollars and unenergies to heal the wounds
of Germnay and Japan.
War has

in ci'/iliza'.ion since the Sermon
no

Our

told

MacArthur, after tracing war's history, cites the bur¬
war and
points out if mass destruction weapons por¬
outlawing of war, it would mark the greatest advance

dens of

inflicted

injuries

very

foe.

spent

General of the Army

tend the

his

on

By DOUGLAS MacARTHUR*

General

the

part

A Plea to End Wars
-

(621)

is

survive,

to

fore

courage

wish

sal

—

a

in

some

The

power

which

is

universal

into actuality?
—
era.

will

have suf¬
imagination
and
moral
to translate this univer¬

figure

ficient

coming

When

learn?

we

great

must

old

be¬

rapidly

necessity

We are in a new

methods

and

solu-

tions no longer suflice.
We must
have
new
thoughts, new ideas,
new

concepts, just as did our ven¬
faced

erated forefathers when they
a

of

new

the

world.

We must break out

straitjacket

of

Continued

on

the

past.

page

26

'(622)

Moreover, all economic projec¬
are
based on a set of as¬

25

Continued from page

tions

sumptions

There must always be one to

lead,

that one.

We

and

should

we

should

abolish

the

with

proclaim

now

to

ness

be

in

concert

powers

of the
magi¬

war

great

readi¬

our

The result would be

world.

and the South Ko¬
tree to
concentrate on the third front—
Indochina and the French.
and left Red China

Successful there, the Reds now
located in Formosa.

cal.

Bonaparte
Far East

The Outcome in the

view

demic

in

of

situation

the

allies

sound somewhat aca¬

This may

of

the

acuteness

in

the

Far

East.

Strategically, the problem there
has developed along classical lines
familiar

—the

of

case

concen¬

a

central position
deployed against scattered allies.
Red China, inherently weak in in¬
dustrial output lor modern war
but strong in manpower, engaged
on three fronts—Korea, Indochina
trated enemy in a

civil

in

and

Fighting on all three si¬
multaneously meant defeat, but
individually the chances were ex¬
cellent. The hope for victory de¬
pended

getting

on

fronts

some

cease-fire

a

full

the

that

so

potential of its limited military
might could be thrown against the
remaining one or ones. That is
and is happen¬

what has happened

the cessation of the
by the isolation
the Formosa area, which prac¬
First

ing.

civil

was

action

war

Nationalist
allies.
Red

immobilized
one
of the

tically
China,

against

concentrated

then

China

the
too much for its

Korea and Indochina. But even

double front
strained

was

a

cease-fire

Korea.

This im¬

resources, so

obtained in

was

mobilized

that I can
by one."

one

Militarily the situation demon¬
strates the inherent weakness of
the

security

of collective

theory

than its

—the chain is no stronger

link, and what is even
vital—its full power can

more

links are
brought simultaneously dnto ac¬

only be utilized when all

interests of al¬

The diverse

tion.

toward

tend

lies

always

tion

rather than unity.

What
fate

betides the ultimate

ever

Far East—and

the

of

separa¬

indeed

disputes; No large shifts in

once

gracious

its

for

Angeles

Los

of

without

close

not

It has been an inspi¬
where missions
once
stood as lonely outposts in
the advance of our Christian civil¬

hospitality.

be here,

ration to

but where this great me¬

ization,

stands as a monument
and adven¬
ture
a
symbolic reminder of
Californian strength and fortitude.

tropolis
to

now

monetary cr fiscal
Economists generally say
any of these as¬
sumptions require a re-appraisal

hate

leave—but,

to

I

as

from

trigued

by

number

of

that

cuts

changes in

of the business outlook. However,

who

those

activity

ness

was

very

high

level

tion

and

construction

In both areas,

homes.

tivity

seems

basic

demand

new

current ac¬

than

higher

be

to

of

would

factors

jus¬

quarter.

I'm

National

Bureau

be

equal.

point is that all
economic
growth potential , are, - based, on
long-run trends.
Yet. in looking
at the next year or two, short-run
factors may be most important.
As the saying goes: "In the long
A

(2)

second
of

projections

we

run

this

with

greatest

assumption

in these

applies

the

to

projections that productivity will
rise

the

at

shows

In

indicated

rate

been

to

seems

sonal

phenomenon—it's

revival

anything

years

make

To

the

terms,
tional

the

Up:

successfully
negotiated the difficult shift from
the

process,

decline in production and employ¬
ment

remarkably

was

moderate.

And, in large part because of

propriately

ing

However, it

factor.

in the

been

have

we

evidence

the

that

me

that

shows

of the cycle since
the fourth quarter of last year.
stage

QUESTION NO. 3
What

rying

purpose,

timed

in

power

tained

at

the

a

high

of

con¬

main¬

was

level.

ap¬

buy¬

cuts,

hands

businesses

and

sumers

tax

the

of

What

is

employment,
and

business

and

power

cal

in

production

ductivity,
sumer

projections

opinion,

my

trends

past

of

the

purchasing

order

to

stand

understand

at any

where

you

Having

said this, let me now
the
importance of inter¬

tistics

preting all such projections most

finally compiled, they
a
sharp upturn in

show

and

employment

the fourth quarter of 1954.

in

Thus,

the economic atmosphere is clear¬

ing

carefully.

long

as

In

On

basis

the

of

-*~

velopments since 1952, how would
you classify calendar year 1954 in
respect
business
earlier
Bureau

the four phases of the

to

cycle

identified

the

volumes

of

of the National
Economic Research—

as

expansion, recession,
tion, and revival?
It

in

seems

statement

to

me

contrac¬

this

fine

believe

so

them

interpreting such projections

should

things

be

kept

in

(1)

government

jections of
relates

art of

is

margin

has
the

—

practitioners

ingly

close

involved in

I personally think

question.

there

bull's-eye

in

be

a

margin

business

up.
If the pro¬
jections for the year ahead show
that activity will continue to in¬
crease, should we take steps now

another

way

of asking how close

expect

can

we

This is

to

come

in

any

to the ideal of contin¬

year

Sum

To

Up:

I

believe

projec¬
tions of the economy's potentials
are
an
important and necessary
tool.

However, I believe they
interpreted with great
for reasons which I have at¬
be

tempted to explain.

large

a

production
either

the

and

the

on

side

deflation—then
should

indicate
taken
We

close

have

We

believe

the

inflation

defla¬

taxes

and

restraining credit.
and

I

lies

between

infla¬

be

much

deflation
than

When

pect.
as

that

area

believe

may

most
we

analysts

are

we

However,

in that area,

today, gov¬
should be di¬

policies

at

encouraging the private
economy's long-run growth po¬

tentials.

However,

we

need

alert

to be




greater volume of goods—so
most

this

intense

as

For

the

benefit

year

of

laid out in neat numerical

the

to line up on

clear that the current rise in

we

will

situation.

who

fashion,

the basis of

a

set of

assumptions I shall set forth. (The
am about to give will be
in

expressed

seasonally

adjusted

rates.)

With

and

fixed

private

at

now

hand, it seems to me that
project both government

you

can

expen¬

with

a

If

be

goods and

services

should

go

from $74.3 billion in the fourth

up

quarter of 1952 to $77.1 billion at
the

of

end

local

this

State

year.

will

governments

for most of the $2.8

increase
would

cope
area

post-war period.

new

about

and

account

billion rise.

$800

million.

I

plus trends in things like

orders,

>

Moreover, there is good reason
expect that plans
reasonably firm this

pointing

as

to

no

will remain

to

activity increases.

eral

budget assumes

disposable income.
street

if busi¬

year

ness

The Fed¬
4% rise in

a

According to

and

Dun

&

Brad-

businessmen

surveys,

In

opinion,

my

to

areas

the

difficult

project—and at the

time, the most important
inventories and

are

consumer

consumption,

for

there

to

expect

to
im¬
portant change in the ratio of in¬
be

reason

no

seems
any

ventories to sales. In other words,

inventories

will

trail

along

with

badly

need

change in sales.

any

is

Here
better

need

where

more

we

better statistics.

data,

Michigan

financed

of which

of

precise knowledge

about these key areas can be dra¬
matized

by

Twain.

reference

Mark

to

Alter listening to a series

of estimates of the length of the
Mississippi River, he marveled at

of

such

gets

one

science where

a

wholesale

conjecture out of such
that

In

jectures
ditures

vein, here

about

—through

are

evidence
to

expen¬

for

recent
an

in¬

spending.

As

rough guess, the ratio of con¬
spending to disposable in¬
come
might rise from 92.8% in

a

sumer

fourth

the
to

around

quarter

of

last

With income rising—in part

expenditures—that would

that
a

Though

I

suspect

home-building is running at

rate that exceeds basic demand,

I still look for

in

an

total

the

end

the

of

in

mean a

in line with this increase in

today.

billion.

by

the

termining

And

year.

net

I have set
up

Fixed

Investment--

Consumption
Inventories

As

I

jections
tend

to

such

in

seems

termine
error

to

.8 billion from

50.7 billion

245.5 billion

up

8.0 billion from

237.5 billion

from

—1.5 billion

2.5 billion

terms

way

to de¬

just what the margin of

may

be.

changes in the

But,

$74.3 billion

up

the precision

no

4th Quarter 1954

51.5 billion

business forecasts.
be

forth, the numbers line

this way:

$2.8 billion from

specific

exaggerate

surrounds

de¬

general

1955.

1955

earlier, pro¬

out

will

up

up

pointed

of

in

$77.1 billion

$376.6 billion

Total

Clearly,
area

importance
level

sales,

increase

Thus, under all the assumptions

investment should rise from $50.7
4th Quarter

to

billion.

the

business in

a

$300 million plus. All in all, fixed

Government

have

consumer

crucial

construction

of

inventories

keep

$2.5

trends in
be

foreign investment should show

To

business, would
them

buying of about

consumer

increase of $500

by

be¬

of the increase in consumer

cause

$8

strongest

year

late this year.

94%

of

our

1955.

have

as we

point to

consumer

con¬

my

and

surveys

trends—seems
in

trifling

consumer

inventories

and

Such meager

crease

returns

a

of fact.

investment

equipment. Con¬

one

Re¬

more

inventories.

on

lack

much

need

we

information
Our

consumer

by the Federal

And

serve.

of
some

surveys

buying intentions,
are

We

work—like the

survey

vestment in

new

ex¬

And the key item is

penditures.

rise

is

same

ones—-

change in the level of business in¬

struction

are

planning on an increase in sales.

interpret the McGraw-Hill

survey,

short¬

the

project these areas of the
with a high degree of
For instance, the Com¬
merce
Department's surveys
of
business plans to invest in new
assurance.

rea¬

assurance.

Thus, government expenditures
on

surveys

business investment plans—we

of

expenditures

investment

plus

budget

the fascination of

information

the

tools available—•

new

Federal

the

here is how the major components
of Gross National Product seem

There

the

last.

as

those

economic projection

see an

the year progresses,

with

com¬

petition for markets should be al¬

that

If, as
it should be¬

should be ready to

year

good increase,

a

However, the economy has
the capacity to turn out an even

to economic developments.

lived,

a

sus¬

are

in the future.

be

and

threatens; and we can check an
inflationary move by running a
surplus in the government budget

National

will

be

if deflation

make credit available

this

4%

weapons

and

ters,

Product

about

against the econ¬
performance in recent

million

reduce

can

National

Gross

rise

measured

areas

gap.

activity

final

that

will

year—and that's

or

econ¬

might

steps

a

and

of lively competition.

expect

Product

be

activity

high-level

year

—

inflation

powerful

against both
tion.

potential

of

I

expected

point this out and

what

to

If they show

between

gap

business

the

I

a

Private fixed investment should

come

in

also

high-level production.

lion in all estimates of what Gross

up

of

year

tivity is moving

of tolerance of at least $5-$10 bil¬

turned

answer

sonably high degree of

below

are

Economic activity declined in the
first
quarter
of calendar
1954,
leveled out in the next two quar¬

and

my

on

ernment

amaz¬

up

sum

this way: I believe 1955 will

ac¬

rected

should

period that should

coming

our

competent

post-war period.
Neverthe¬
less, most economists would agree
that

the

the

but

narrowing

come

can

for

We

been

the

I

year.

pro¬

economic potential

now,

more

have
to

outlook

potential

broader

steadily

business

ahead; and,

down.

or

With

McGraw-Hill

this carefullyworded question it asks the panel
members what they think of the
interpret

nomic policies.

economic forecasting, there
error

I

ditures

the

projections.

the

As

annual

about

com¬

ing year?

be considered in formulating eco¬

tion

margin of

a

all

caution.

point

our

to

in

trends

private

services, and savings for the

rise

no

should treat pro¬

great

third

A

term

we

with

In the current state of the

the

that my earlier

answers

don't

you

are

mind:

de¬

economic

figures

fully."
three

QUESTION NO. 2

As one of my colleagues

"These

says:

rapidly.

up

(3)

omists

given time.

stress

production

present

suppose

long

productivity,

care,

economic activity is on the
upgrade now.
When all the sta¬
are

and

jections

con¬

You need to know

purposes.

invest¬
ment, levels of consumption, Gov¬
ernment demand
for goods and

figures I

must

invaluable for analyti¬

are

production,

short

pro¬

what the economy's potential is in

more,

should

the

at

year

to accelerate the advance?

in terms of car¬

objectives

the

out

In

normal

more

a

the

Na¬

total

First, what
government

plants and equipment have come
of ;within 5% of actual results in the

implications

employment, unemploy¬
ment, hours of work, productivity,

like to

are

was

up

tions for

productivity occurred. If there
had already been reasonably full
employment the result would be
a large dose of inflation.
The point is that, in the present
state
of
our
knowledge
about

The record shows

In

Gross

fiscal and monetary
policies on the assumption that
this amount of growth would be

the needed levels of em¬
ployment, production, and pur¬
chasing power, and for how far
ahead should they be defined?

defense boom to

in

resulting from the

to adopt

uous

that the economy has

prosperity.

specific

point in

the

are

trends and present indica¬

recent

Suppose

fining
Sum

was

growth

Product

QUESTION NO. 4
What

time.

given

by.
To

regular.

little ad¬
vance;
in
productivity
leaped ahead at more than twice
the long-term average.

Employment Act, is served by de¬

as

increases

but

there
others

some

the months go

housing market

its

by

Now the record

trend.

that productivity

have

inflationary side, the tax cut
could be permitted to expire.

our

all dead."

are

the

and

second, how would these plans be
altered if business activity went

economy

the

on

eye

wary

a

at

debate

to

plans for the period

the economic winds had shifted to

keep

were

spending

defense

the initiating

the current high
level of output is largely a sea¬

a

in

decline

In

the nor¬
mal rush to get ready for heavy
spring sales.
And our statistics
may be overstating the extent of
the housing upsurge.
Neverthe¬
less, it's important to watch the

in

adjustment

business

were

should

things that economists assume to

used

lot of esoteric words, the

a

can

cir¬

describe a re¬
which a massive

volved

review the economic situation—if

once

categories

the

opportunity after
period as a year to

such

some

years.

that the

sure

stimulate

would have the

each

adequate to

fully

tify.

autos,

not

a

tax

Economists

framing policy in a world as un¬
certain as that we now live in

in

partly due to a
of auto produc¬

of

that

should be made for tem¬
periods.
Thus, Congress

porary

billion

Now and
Future—Replies to Questions

to

in¬

am

suggestion

economists

designed

omy's

Business Conditions,
In

for

responsible

are

the

I

economy

ductivity amounts to about $9-9V2

3

page

connection,

policy.

forthcoming and

Continued

this

even

—

I

In

long-term rate of advance in pro¬

American industry

quarter of 1955.

which to operate.

government

long-run

thanking this beautiful city

of

quarter

fourth

$51.5 billion by the final

to

two main issues were:

ment

of survival.
can

in

room

1954

the

in

billion

sures.

of specu¬

psychology; No prolonged
wide-spread
labor-manage¬

All

I

is

and

national scene; No wave

force

more

aenarion

lative

not be settled

force

by

ana

lnnauon

length over trends in government
spending and private fixed in¬
vestment.
While the debate in¬

of arms.
We may all
be practically annihilated — but
war can
no longer be an arbiter

world—will

the

of

oeiween

fairly broad—say on the order of
$15-20 billion—there is elbowThus,
in
the
unlikely event that the
private economy should need bol¬
stering, we can apply the appro¬
priate monetary and fiscal mea¬

weakest

pledged under very different
United cumstances, I shall return.

so-called

the

me

so

enemy

an

as

"Give

said:

once

defeat them

Nationalist

with

war

China.

on

first front
As Napoleon

old

the

to

back

turn

not always

are

laicL^aut. Some of the
key assumptions are in some in¬
stances: No c/fange in the inter¬

Nations forces
reans

which

explicitly

Wars

A Plea to End

£n

3, 1955

The Commercial and Financial Chronicle... Thursday, February

26

granted

no

international and

$15.6 billion from $361

up

domestic
be

scene

that

billion

cannot

now

discerned, it seems to me that

this

can

The

Gross

be said:

odds

are

National

fourth quarter of

somewhere
$380 billion.

very

high

Product

in

that
the

1955 will stand

between

$370

and

;

Number 5400.... The Commercial and, Financial Chronicle

Volume 181

Continued

from

vention that

4

page

bound

long

The Economic Philosophy o!

does not respect

the
the
currency", is
prove harmful in the

"integrity

of

to

run.

,

..

,

specific problem in
planning today is to
dividing line between
sound economic growth and arti¬
the

Hence

economic

The President's Economic Report

find

the

ficial

over-stimulation.

(2) The annual gain in produc¬
tivity.
It

is

enough

easy

And more

conditions

immediate

blocked

increase

in

the

any

price

level.

Moreover, there will al¬
remain some doubts with
respect to the solidity of the re¬
covery
in 1950.
The possibility
cannot be ruled out that, without
the start of the Korean War, busi¬
ness
activity once again would
have declined during
the latter
ways

part of the year..

the solidity of the
recovery still remains open

Similarly,
1955
to

doubt.

some

will

It

tested

be

during the latter part of the year.
Summed up, it still is by no

that a reasonable
maximum employment level can
be maintained by props that are
means

not

proven

lead to an
level.
the controversy

strong enough to

increase in the price

Consequently,
which

over

is

lesser

the

evils—some

"hard-core"

ployment

a

or

of

two

unem¬

continually rising

price trend—still is far from re¬
solved.
The Argument for

Professor

Slichter believes that

the element of

—once

Inflation

from the

and de¬

war

overstimulation

fense

is removed

economy—the only feas¬

ible way

of maintaining maximum

employment, and production and
purchasing power is by a policy
deliberately designed to result in
annual average increase in

an

the

price level of 2 to 3%.
While Professor Slichter admits
the

"obvious

injustice of even a
slow long-term rise in prices," he
claims
that the maintenance of
a

stable price trend

mild

as

keep business recessions

to

possible;

as

Would require the accept¬
ance of chronic unemployment or
drastic intervention by the gov¬
the relations between

employers and employees; and

severely

Would

(3)

handicap

the United States in its efforts to

communism

contain

is

flation

by

building

most

the

cruel

tion

longer

periods.

tions,
the

year-to-year

labor

force

vised

there any way of
this
dividing
line
other
than
by trial and error
which means by maintaining an
economy
from which
all
self-

man.

fixed incomes particularly
hard. But the typical American
"small-capitalist" type of wage

ing

on

is

regulating features
(or
safetyvalves) have not been removed by
well-meant, but unsound experi¬
mentation?
Ill

and

It is obvious that
inflation would hit those depend¬
by

arises:

ques¬

The

Function

"Maximum

of

Employment" Goals
The

desire

and

more

often

more

repeated

This question is being
asked not only by businessmen—
perhaps not even primarily by
businessmen—but by the "public,"

question.

popularize the
Employment Act and to draw it
into politics has led to a number
of
practices
which ' are
scien¬

including wage earners, and it
runs
bluntly like this: "Is there
any chance of escaping an ulti¬
mate currency breakdown if we
keep on stimulating the economy?"
The answer to this question still
is that no such currency collapse
is likely in this country.
However, the reason for this
belief is not the simple assertion
that "it cannot happen here," but
something far more significant.
While in each economy there
are
groups who obviously would
profit by inflation—who actually
interest

vested

a

tinued inflation

consideration

in

con¬

the over-riding
this country is

—

in

lowers

this

of

that

lieve

economic

is

it

we

—

to

and

cult

growth

measure

line from

a

to

year

.

cold

or

liberal

econ¬

All economic
a

planning involves

an

Adminis¬

tration defines the maximum

em¬

particularly our
is rapidly becoming

forecasts
not

exact

an

economics

because

science

stimulation,

war

it

is

to

the classical demonstration of

in¬

are

which per¬

While rapidly rising pro¬

flation.

ductivity provides a natural de¬
fense against inflation, it would
involve a considerable risk to base

national
Maginot line.

long-range
such

a

policy

on

idea that slow infla¬
would
"spread
injustices

(2)

The

tion

thinly over
population"
of

basis

a

of the
unacceptable as

large

is

national

part

economic

and

social policy.
A
case

far

any

better

solution,

of temporary

in

the

economic bal¬

is to rely on what is now
commonly described as the "secu¬

stimulants. If super-imposed on a

lation of industrial and communal

reasonably

sound economy—and
we would so classify the economy
today — there is no reason to

expansion programs and regional
plant location
decisions which,
[following
further
refinements

doubt that it would

may

be

a

reason¬

ably simple matter to strain the
boom
to
the
proportions of a
super-boom once again.
But any policy aimed at superconditions

boom

would

con¬

run

trary to the
Employment
both

a

general aim of the
Act. Economists of
Democratic and a Repub¬

lican Administration—while

ing

on

serv¬

the President's Council of

Economic

Advisers

—

have

re¬

Meanwhile,

floor"

citizen

or

for

the

individual

these
have

danger
is
particularly
acute if an attempt is made to for¬
mulate near-term expansion goals
by using

the American family.

reprint mentioned in footnote
No.
I.
To the best of our knowledge,
Professor Slichter has not subsequently
denounced or materially amended these
3 See the

Views.




a

fact of the

The

of

tion of any

two

the National

Econ¬

the

most

highly variable.

(1)
and

matter

the

is

that at

important

factors in the construc¬
"normal-growth" line

specific
are

long-term trend line.

The

labor

annual

They are:
increment

force; and

5 The term "liberal" economists is used
a

used
ative

rather
to

loose

throughout. It is
epposite of conserv¬
supposed to have any

sense

indicate the

but

is

not

It has became gen¬
describe these economists

political connotations.
eral
as

usage

to

"Fair Dealers."

National

1951

Colm

+1.5%

Paley Report
High Projection:

+2.5%

Julius Hirsch
is

It

+21/2to3%

obvious

that

such

differ¬

in the calculation of future

ences

productivity gains will have an
important bearing on the future
projection of / G r o s s National
The comparison made by Julius
shows the following esti¬

Hirsch

for

mates

the

Product for

Product

Gross

various

National

target dates;

Estimates

that

530

the

248

—

415

___

fixation

"goals"

of

an¬

under

is

pressure

exerted

Administration to pin-point

specific
year, the suspicion is that this is
political

rather

than

success

the

failure

or

562

continuation, and fur¬
aggravation, of over-stimu¬
growth. From this point of

ther

roughly

a

in

attaining

side-wise

busi¬

movement would appear

ness

isfactory. It would give the
omy

sat¬

econ¬

chance

to grow into its
productive plant without

a

current

harsh transitional pains, but also
without further jeopardy to the
free

our

ideological basis of
competitive econ¬

and

omy.

goal

of maximum employ¬
production and purchasing
power, defies the use of mathe¬

Misuse of G. N. P.

ment,

matical

rigid

or

sticks.

statistical

yard¬

Such determination

can

accomplished only by flexible
of

634

not to

economic and

reasons.

The determination of the degree
of

586

___

and

view

lor

527

329

Employment Act is not only use¬
less, but highly questionable.

economic

465

500-600

lated

done

763

525-535

:

—

412

the

an

1975

425

circumstances, it is

progress

1970

■

—

Paley Report..

nual

1985

440

___

McGraw Hill..

obvious

1960
I960

345

329

_____

Under these

1952

___

E'nsley9
Weyerhaeuser.
Keyserling

available
their

and

against

business

indicators

interpretation
background
of
the

proper

the

whole

be
use

economic

Unem¬

process.

Those economists who

are

pleading for an immediate clos¬
ing of the "gap" between what
they consider the maximum em¬

ployment-growth
actual

base

line
performance of

their

tions

policy

and
G.

the

N.

P.,

recommenda¬

what probably is an ob¬

on

jectionable use of Gross National
high ranking in the Product figures.
Their argument runs
selection of these yardsticks.
something
To repeat: there is nothing in* like this:
Since G. N. P.
roughly
the Employment Act—nor in the corresponds to consumer

ployment

trends,

of

will

course,

have to get a

spending,

parliamentary
to its

proceedings

enactment—that

prior
be

can

in¬

terpreted as a mandate to bring
about
uninterrupted
annual

Actually, the American econ¬
has never experienced any
period
of
consequence
during
omy

which

such

pattern prevailed—

a

except under the stress of

nating

war

Those

oped

domi¬

a

"second

-

who

best

-

devel¬

is

not-

-

good-enough" theory of economic
growth cannot cite the Employ¬
Act

authority for

as

their

views.
As

has

been

shown, they
not on solid ground; either
nomically
or
statistically.
a

attempts

"gap"—annual

—between

growth

an

to

are
eco¬

All
demonstrate

and

cumulative

arbitrary maximum

line and

formance

of

the

actual

N.

P.

G.

per¬

are

not

scientifically supportable, because
they are working with invalid
yardsticks.
From

point of
over-riding
goal
of
current economic policy has to be

view:

long-range

a

the

the return from
stimulated

to

of

a

pattern of

over-

supportable growth

Hirsch

comparison

has

seven

under the title:

manuscript

"Our Economic Fu¬

A

Comparison of Seven Long-Term
Projections." New York, 52 Wall Street,
Jan. 7, 1955.
7 A study made by Stanford Research
Institute

for

the

Weyerhaeuser

Lumber

8 The

be

made

A~"»rican

1952.

be.

up

one

or

Since

with

a

by increases in the
as the case may

two,

we

are

spending

continues

ment

Economy in 1960, De¬

confronted

now

decline in Government and

business

their argu¬

—

—

it

follows

that

spending

consumer

can

must be
best be done by

increasing the amount of
in the hands of

consumers

money

through

higher wages and higher social
security benefits.
This type of economic reason¬
ing sounds simple and attractive,
but it is faulty. It amounts to a
crude formulation of the

very

called

purchasing-power

so-

theory

which ignores the fact that there
is
an
important difference be¬
tween

business

spending

on

and

the

government

one

hand

and

spending on the other.
faulty
interpretation of

consumers

This

the

of

role

consumer

its

received

greatest

spending
impetus

when

a
group of economists and
statisticians
started
to
compute

the

National

"Gross

Product" (a
concept in eco¬
nomics that took the place of na¬
tional income) from the expen¬

relatively

new

the income-

side.

Although the totals, regardless
used, theoretically

of the method

Continued
9 Joint Committee on

port:

Company, 1954.

cember,

or

ditures—rather than
just completed a
long-range growth

projections. It is available in
form

spending and Govern¬
spending, a decline in any,
any two, of these categories can

boosted. That

emergency.

economists

the

ment

business
ment

other

growth.

ture.

in

productivity

Julius Hirsch__

6 Julius

to

Projection:

(in billions of dollars)

chrrent

acute

This

stimulation.

4 Steelworkers

an

perfected.

least

omy, A Special Report by David J. Mc¬
Donald, President, United Steelworkers of
America, page 12: "When however a sub¬
stantial demand for goods and services
disappears—as is now the case In the
government and private investment sec¬
tors
of the economy—it should be per¬
fectly clear that the slack must be taken
up by an increased demand elsewhere."

is

there

of statistical misuse of
projections
because they
not
yet been sufficiently

peatedly gone on record as being
opposed
to
inflationary
over¬
Any policy of economic inter-

quite valuable.

danger

ances,

rity

prove

differences in

future

its economic goal for any

certain degree of economic fore¬

casting.
Regardless of how

long-range

Gross

on

of Lpng-Range

Projections

+3.5 to 4%

_

Product.

the snarp

are

calculating

Whenever
Role

of

Keyserling

Medium Projection:

as

calculations

+2.5%

Weyerhaeuser

By far the most critical point of
difference among
these projec¬

omists.5
The

Low

future

economic growth.6

tions

+1.5%

In Forecasts for 1975

making such
estimates
are
clearly
demon¬
strated by comparing some of the

not

or

is gaining or losing
against
the
norm
of
maximum
employment,
produc¬
tion and purchasing power.
This type of "model-building"
has become very popular among
and

Leon

population, size
or
labor force, work-week, pro¬
ductivity gains, disposable income
and consumer expenditures.

recent

1960

Colrn8

for

items

es¬

High Projection:

percentages,

growth
rely on estimated increases

such

against
in

.

gather speed and cul¬
minate in a flight from the cur¬
rency
into goods—which still is
likely

in

economy

leaders

in

productivity

on
previous
experiences,
hardly valid when it comes
projection of the future.

must

ground

union

In Forecasts for

Projection:
Weyerhaeuser?
Medium Projection:

out and not lose

be¬

Administration whose mits any "hedge-proof" forecast¬
up
the economies
of the free
policies were to be recognized as ing.
world.3
a
Actually,
the
difficulties are
threat against the interests of
Professor Slichter argues that
these
small-capitalists, would even more basic than that because
since some form of "injustice is
even the projection of long-range
promptly be turned out of power.
inescapable"
.
"policies
that
This is the most potent factor normal growth lines defies any
produce
a
slowly
rising price
against
a
policy
of
continued scientific approach.
level spread the injustice thinly
over-stimulation, even though it
Long-range growth projections
over a large part of the popula¬
designed to prevent any economic admittedly serve a useful double
tion.
The policies necessary to
"adjustments."
purpose:
keep prices stable create unem¬
A number of liberal economists
(1) Psychologically: They are
ployment and thus concentrate in¬ and union spokesmen have re¬
an
effective reminder that there
justice upon a few."
peatedly declared that we cannot is no call for
dusting off the the¬
There are two major objections
hope to, and should not try to
ory of "economic maturity" that
against such a policy:
equal the hot—and cold war over¬ dominated economic
thinking in
(1)
It is extremely doubtful stimulation of the past 15 years. the
early 30's with devastating re¬
that a deliberate long-range in¬ Nevertheless, there are some who
sults; and
flationary policy can be suffi¬ still are aiming that high.4
(2) Economically: They offer
Such an aim would necessitate a
ciently "controlled" at all times.
certain guideposts for the formu¬
If it is to take the place of hot massive program of inflationary
that

a

year

order to determine whether

the

increases

and

such

Calculations

only possible,
necessary to calculate and to
maintain a "normal growth" line

and

currency also have political votes,
it is almost a foregone conclusion

to

not

ployment production and purchas¬
ing power level of the Employment
labor force
Act, the formulation of its policies
a
nation of home owners, savers,
for the attainment of that level
holders
of
life
insurances
and
necessitate a number of economic
beneficiaries of private and social
trend evaluations and projections.
security pensions.
Obviously,
no
administration
Since these people with a newly
found vested interest in a stable can base its policies on arbitrary
that

are

productivity

follows:

are as

Low

based

but

such

timates

The difficulties in

to

tifically questionable.
earner also would not escape the
Specifically, they have led to a
ravishes of such a policy.
"second-best-is-not-good-enough"
attitude
which claims that, to ful¬
An Ultimate Collapse?
fill the purposes of the Employ¬
It is rather significant that there
ment Act, the Company must ex¬
is a
growing concern over the
pand every single year.
stability of the currency. This
The statisticians among the fol¬
concern shows up in the form of
a

However,

of these

Some

back

go

(in percent of cumulative

gains

annual increase).

such calcula¬

In

be averaged
their meaning.

determining

vicious form of taxation ever de¬

—

(2)

ernment in

questioned whether
"security floor"
—primarily consisting of unem¬
ployment insurance, old-age and
disability insurance—is adequate.
At any rate, it would appear to be
sounder
economic
policy to
strenthen
the
"security
floor"
than to impose a general tax in
the form of inflation, because in¬
be

may

not the present

have

(1)
Would
require that the
country considerably relax- its ef¬
forts

It

or

specifically the

to

and calculate average growth fig¬
ures for the past 20 years or even

can

markets

27

(623)

\

■

,

on

page

28.

the Economic Re¬

"Potential Economic growth of the
States during the next Decade."

United

October, 1954.

23

The Commercial and Financial Chronicle..

(624)

Continued

tiality to the party in control. Yet
even
so,
agriculture today can

from page 27

ol
President's Economic Report

should

least

at

out

come

very

close, that is not the case. After
the end of war, the G. N. P. fig¬

computed from the expendi¬
tures-side, came into almost uni¬

ure,

form

its

of

conception

its

happy

lief that all three major types

of

"spending"
are
functionally
importance.

of

to

led

dangerous over-

a

simplication, because it obscured
the important fact/th&t consumer
spending actually is the function
the

of

other

two

types:

business

and

ment

which

have

a

effect.

(The

role

There

raise

is

thing as to
expenditures in¬

consumer

definitely by cutting
a

that

way

getting

the avail¬
"pie"
in

up

income

national

able

ruch

consumers

are

and management is

more

squeezed further.
Such

economic

policy of raising con¬
funds,
and
presumably
consumer
expenditures, may be
in

and

standstill

when

depression

a

spending

to

wheels

turning

at

least

at

a

push

some

start

needed

is

is

some

again.
It
also
do the trick of augmenting

may

spending

consumer

for

period

of time when
of confidence prevails

companies,

and

some

despite

pressures,

chance

feeling

competitive
willing to take a

are

higher wages in the
that they can avoid strike
interruptions and thereby hold
their competitive positions.

The

long-range pol¬
icy, this approach is faulty be¬
cause a policy aimed at continued
>

e-distribution of national income

benefit

to

workers

alone

will

undermine the incentives for

soon

further growth.
Labor

of

must

the

greater

after
for

had

has

stopped

were

results

all,

in

the fruits

productivity.

has

been

American

the

That,

thought is concerned:

feeling is now wide¬
spread that all similar business
slowdowns can be quickly halted
The

(1)

that businesses

so

sumers

as

securely in
"nothing can go

that

the

i

■

clamor for affirma¬

political

tive action by

the Government "at
slightest sign of trouble." 11
This obviously reflects the philos¬
ophy that as long as the Govern¬
ment can prevent setbacks, it has
the

a

moral

obligation to do so.

The economic progress since
end

War II and the

of World

with

which

the
and

have

led

to

spread feeling that the economy is

basically

"sound"

the

that

and

decline

1954

that,

now

has

been

reversed, progress will be resumed
from

that
the
stimulus
of
World
the
postwar consumer goods replace¬
Actually,

the

it

ment

and

boom

all

its

of

well

may

made

progress

the

be

under
War
II,
Korean

War

cold-war implica¬

tions has not yet been

sufficiently

"digested."
Under

influence

of the

—

(1) The rate of plant expansion
since the early 40s;

The
ventories;

The Future of the Business Cycle

When

the

authors

of

the

Em¬

with

the

task

of

in the home mortgage

promoting maximum employment,
production and purchasing power,
they wisely added that this was to
be

done

within

the

scope of
"free enterprise system."
This qualification can hardly

ignored

as an

reflects

a

firm

conviction

the

on

part of the authors of the Act that
no

amount

mentation

of

is

economic

experi¬

worthwhile

unless

economic system maintains its

our

dynamic character.
Those responsible for the formu¬
lation of economic policy under
the

past

one

a

two

Administrations

Democratic

Republican
stated

one—

that

their

one

and

—

one

a

have repeatedly
aim

was

(4)

not

artificially

The

production
curbs; and

quate
-

tion of

durables

servers

seem

have already
surface:

There

(1)
two

of

waves

tion—and

the

Federal

Government

is

con¬

ob¬

broken through the

By

at

price of falling back on un¬
sound budget and wage policies.
a

One

already been
liquida¬

inventory

even

threshhold

of

now

another

expectation that increases in con¬
demand brought about by

will induce indus¬
try to keep up plant and equip¬
ment expenditures
at a suffici¬
ently high rate.
squeeze

This is usually

be

found

in

evidence

to

the annual

this
and

effect

1948

—

forijjinally) semi-annual Economic Reports sign¬
ed by Mr. Leon Keyserling and the Presi¬
dent's reports, since Dr. Arthur F. Burns
took over the
»-ship of the Coun¬
cil of Economic Advisers*
can




wrong

by wise social

is

way

The

measures.

the

of

use

well-

for

there

must

in

errors

eco¬

lation that freezes such
and

inequities

maladjustments into the

eco¬

nomic structure.

the

seems

ap¬

Actual redemption date is not un¬
March

conversion

the

but

1

feature

(share for share of com¬
mon) lapsed at the end of January
and

the

as

common

has for months

consistently
parity there
is little question but that prac¬
tically all of the preferred was

been

selling

quite

above the conversion

in

turned

for

common.

by

the

This

was

optimistic over the Illinois Cen¬
tral picture. The traffic perform¬
has

ance

future

also

been

outlook

good

is

and the

considered

promising.

Coal tonnage in par¬
ticular has been a strong
bulwark,
stimulated by atomic energy in¬
stallations in the territory served
and

by joint rail-lake coal rates

established

through

Chicago

-

a

number of years ago. Large chem¬
ical plants have been built on the

company's lines and

are being ex¬
panded, and the industrial growth

ly around $11 million) of the $18

plus factor with respect to future

million

earnings,

vide part of

dieselization

ferred

tively slow and

free

our

the spark

as

competitive enterprise

system.
is

There

ample historical proof

that

"prosperity
adequate
level

depends on an
of
investment

But there is no statis¬
record
of
any
period
in

spending.
which

the

"Trickle-up"-Theory

pulled

the

economy

of

out

a

the record of past

over

recessions, it is quite obvious that
have learned successfully how
a

barn after the horse

was

After

tion

each

was

depression

passed to make

of

legisla¬
a recur¬

that

cate the unsold balance

pected to continue.

3%%

with

preferreds

issue

the

in

The

thing

one

have not yet

we

however,

conquered,

is

the

in¬

Central

Illinois

was

amount

share.

a

of

par

Assuming

issue

was

pany

did

preferred

small one, outstanding

a

with

shares

only

372,914

value of $50
that

converted and the

not,

as

com¬

&

Denver

a

entire

the

of the
stock itself, there has been an in¬
circumstances,
in

the

but in

any

amount of

outstanding

from

common

2,715,994

to

3,088,908 shares.
This
does not represent any serious di¬
lution of the common stock equity,

particularly considering the high
dividend, rate that the preferred
trouble.
We may be successful in the had carried. On the old capitali¬
future in keeping speculative ex¬ zation the road reported earnings
of $7.09 a share on the common
cesses out of such fields as stock
market credit, mortgage credit or for the 12 months through No¬
vember 1954.
Adjusted to allow
consumer
credit.
We
genuity of

to get himself into

man

may

even

halt the deterioration of the farm¬

er's

purchasing

power

we

succeed in maintaining a rea¬

sonably high level of investment
After all

the

of props at
disposal for all of these things

is impressive.

array

It includes margin

regulations,
farm

housing regulations,
price supports, stockpiling of

metals,
credit

minerals

and

other

ma¬

all
the
instruments
of
policy and a shelf full of

public works
new

programs,

highway

And yet

including

program.

what would happen if

the next recession—instead of be¬

set

into motion

by

a

cut

in

plant

expenditures,
or
another
inventories, or
another
drastic drop in farm prices, or by
in

one

of the three

four vulnerable major fields—
were to be generated
by a tempo¬

or

rary

saturation

sumer

for the conversions this would be

only to $6.59, a modest
price to pay for this simplification
of the capital structure.
Elimination

spending.

of

consumer

goods,

including

de¬
con¬

housing?
omy," page 7: "Thus, the monumental
There are signs that people are
'Employment Act' reposes both the pow¬
er
and
responsibility upon the Federal
becoming
less
gadget-minded
Government to assist the national econ¬
-than they were. That could mean
omy at the first sif>n of difficulty, even
a sign of saturation.
before distress overtakes us."

stock

the

marks

of

the

the

preferred

culmination

of

company's

aggressive
long
range program for improving and
simplifying the capital structure.
In this program the company has
made
the sharpest reduction in
non-equipment debt of any road
in the country except those that
underwent
judicial
reorganiza¬
tion.
Also, a very complicated

multiple mortgage setup has been
changed to one mortgage. This
mortgage is in six series outstand¬
ing in the amount of $128,780,900
which, together with the indicated
$7 million of the new 3V2S not re¬
purchased,

would

put total nondebt at $135,780,000.
This
is about $200 million less
than was outstanding at the out¬

equipment

set

of World

645,700
has

par

been

War II. Also, $18,value of 6% preferred

eliminated

during this

It is not only the phenomenal
improvement in the debt struc¬

that

makes

many

company's

it

is

trends
As

ex¬

further

a

pointed

so

traffic

are

out

that

far has been rela¬

it

as

progresses

already high degree of operat¬
ing efficiency should be further
improved.
Adjusted
cated

for the

stock

indi¬

present

capitalization,

it

is

probable that 1954 earnings prob¬
ably come to around $6.75 a share
compared with $9.55 in 1953 ad¬

justed to the

stock.

new

Consid¬

erable
improvement
should
be
witnessed in the current year and
an
increase in the present $2.50

dividend

should

not

be

long de¬

layed.

R. J. Powelson Y.-P.
Of

Leedy Wheeler Firm

ORLANDO,

Fla.— Leedy,
Alleman, Inc., Florida
Building, announce that

Wheeler &

Bank

Ralph J. Powelson has become
sociated with them
dent.

Mr.

analysts

Powelson

with

was

Smith,

as¬

Vice-Presi¬

as

in

the

Barney

past

&

Co.

and

Tripp & Co., Inc. in New York
City.

With Francis I. du Pont
(Special

to

The

Financial

Chronicle)

LOS ANGELES, Calif.—H. Dan¬
iel Wells has become associated
with
377

Francis
South

Wells

I.

du

Pont

Figueroa

formerly

was

Professional

&

Co.,

Street.
an

Service

Mr.

officer of
Plan

prior thereto was Beverly
Manager for Walston & Co.

and

Hills

Joins Lester, Ryons
(Special

to

The

Financial

Chronicle)

LOS

ANGELES, Cahf.—Cecilia
R. Lieb has joined
the staff of
Lester, Ryons & Co., 623 South
Hope Street, members of the New
York and

changes.
with

Los Angeles Stock Ex¬
Miss Lieb was previously

Standard

California

and

Investment

prior

Co.

of

thereto

in
the trading department of
Edgerton, Wykoff & Co.

With
(Special

LOS

period.

ture

the

These

the

reduced

and

to

Rio

Grande Western did under similar

shares

alike.

call features are

disappearing from the market and
the parade is presumably by no
means completed.

that

are

to pro¬

payment,
the company
no
longer needed the funds. One by
one the investment grade railroad

stock

depressions

sold

for

crease

two

bonds

(reported¬

the funds for the pre¬
redemption. With the stock
converted rather than presented

that process we have also learned
no

entire southeast has added

potential.

particular type of
depression next to impossible. In
rence

of the

chasing from the banking syndi¬

we

to lock

the

of

further

The

Looking

action

management last week by repur¬

slump.

credit excesses in

the National Econ¬

column

this

time

in print Illinois Central will
virtually, if not completely,
elimniated its 6% preferred stock.

investment incentives

ing

prices and farm in¬
have been declining since
without showing any par¬

11 "Steel Workers and

is

The
this

accomplishing

of

way

which seeks to maintain adequate

mand for all kinds of durable
10 Conclusive

proper

areas

indicated

cut

accumulation

unemployment in
displaced industry.

a

described as the
which,
in
the opinion of union economists
and leaders, is far more effective
than the "Trickle-down"-Theory,
"Trickle-up"-Theory

widely

Farm

comes

fal¬

sumer

at the
period of

the

chronic
with

for

pears

til

most dangerous

of the

lacies behind this reasoning is the

the

have

an

necessary

Illinois Central

have

to

terials,

vulnerabilities

held optimism that we are

(2)

Nevertheless, the popular belief

most

to think.

these

of

Two

penalties

equal the artificial stim¬
ulants of the past 15 years though

our

than

rather premature.

that

marketing

demand for

consumer

sumer

inventory

tions.^io

or

(5) The possibility that we are
far closer to a temporary satura¬

all,

minor, business fluctua¬

sup¬

port of farm prices without ade¬

directed toward the elimination of
even

in¬

field;
high

thing—and

one

one — to
cushion the human impact of eco¬
nomic maladjustments — such
as

the

nomic judgment.

Theoretically, it would be pos¬
sible

may

a

be
empty phrase, as it

of

(3)
The
sharp
expansion
in
personal indebtedness, particularly

ployment Act charged the Federal
Government

accumulation

(2)

is

It

eminently

meant, but fuzzy economic legis¬
that

means

for

un¬

paralleled over-stimulation of the
all along. Labor must not, how¬ past 15 years, a number of vulner¬
abilities have developed under the
ever, be permitted to monopolize
surface of the economy that have
these productivity gains.
Personal, as well as managerial not yet been tested and that may
"incentives" must be maintained yet break through the surface to
real postwar read"restored" is perhaps an even create some
better word—if our economy is jnstment problems.
Chief
to keep on functioning as a free
among
these
"vulner¬
and
competitive enterprise sys¬ abilities" are:
IV

also

It
be

rections.

granted.

success

tem.

—

for

as

corporation.

stolen.

the

well

eco¬

the part of

on

the government must not
attempt
to eliminate the need for all cor¬

still

much

too

take

to

seems

tical

"solid base."

a

incentives

as

that

reason

nomic intervention

can

reasoning

of

type

were

wide¬

a

profit

individual

the

this

Cycle Patterns

Past and Future

of

1953-1954

1948-1949
overcome

the

ease

recessions of

two

sufficient

penalties can re¬
dynamic and free.

for

achieved.

be

profit

turn, is leading to

in

This,

(2)

con¬

proceed

can

belief

well

as

wrong." And

formula

industrial

is

without

tinuation of this "millenium"

far as

as

development of contemporary

economic

plus

share

destruc¬

cycle

the fact that thus

on

again

—once

This

these two

which

with

ease

unfortunate

two

matter of

a

predicated

or

business

the

of

literature

current

the

and

truly
is

to

now

on

hope

As

inclination

an

recessions

short

a
a

pleasures . inaugurated
'Government ."in
office.

is

classify both of them as relatively

sumer

investment

of

economic system based

an

rewards

It

a

by

far the Government has succeeded

minor "inventory"—recessions.

the

a

effective

the

by

govern¬

such

no

economic

the

that

dream

There

spending

high multiplying
of savings and
dissavings is deliberately elimi.iated in this discussion.)

Vulnerabilities,

millenium has arrived.

equal

That

short of

respect of
party lines—to stabilize the econ¬
Both these "bumps" were ter¬
omy at a level that seems to have
minated rather quickly and with¬ frozen in the overstimulation of
out damaging
after-effects, with the past 15 years rather success¬
the help of a number of positive
fully — and that, therefore, con¬

encouraged the popular be¬

have

not
seem
to dis¬
those who live in the

does

courage

to

uses—- seems

ing at sub-standard levels, nothing

base.

party

period,

Only

hardly be regarded as on a sound

tion

procedure—per¬

in

logical

most

and

large

a

main

Most

use.

fectly

that

true

on

lines—the economy suf¬ about the elimination
fered two "bumps" in the postwar

to

This statistical

is

it

part of the population still is liv¬

gigantic give-away pro¬
definition, gram could create effective de¬
mand
among
this group over¬
are weak spots that do not neces¬
sarily have to break out into the night and any attempt of accom¬
open. There is constantly a threat plishing this goal through a policy
that they may—but it is not be¬ of boosting minimum wages fur¬
charged with the responsibility of yond the realm of possibility that, ther would certainly result in
preventing any interruptions in through
orderly
adjustment serious economic dislocations.
the economic growth of the coun¬
Maintenance
of
the
dynamic
processes, these weak spots dis¬
try persists.
character
of
the
economy
does
appear.
The fact that—without respect
not only require the existence of

The Economic Philosophy
The

While

.Thursday, February 3, 1955

King Merritt Co.
to

The

C. Shewan is

ritt & Co.,
way.

Financial

Chronicle)

ANGELES, C^iL—Walter
now

with King Mer¬

Inc., 1151 South Broad¬

Volume 181

Number 5400... The Commercial and
Financial Chronicle

(625)
Continued from page 4

~

estimated

161,481

in

the

1950, has held the
"Ward's"
in

noted

initial

Industry

manufacture

of

1951;

however,

was

the month for passenger car
output.
month is the strongest

this

35%

some

above

the

456,765

opening month
and 97,476

January, 1954.
Meanwhile, current weekly vehicle manufacture

less

than

6%

under

24,

1950

when

Jan.

22-29

133,557 vehicles
Ford

is

the

slated

for

all

estimated

scheduled

its

factories

for full operation

Last

week's

production

in

trucks

at

the

161,481

running

week

and

cars

The

and

23,666

week

when

cars

all 16 assembly plants for Saturday
while Lincoln-Mercury has six days
except St. Louis.
DeSoto also was

in

the United

week and

501

the

of

2,875

by

a

daily

new

units

States.

This compared

last

23,666 trucks made

with 22,407 in the previous

a year ago.

estimated

trucks

plants

against

preceding week and 8,992

turned

5,921
and

cars

out

and

cars

6,465

677

cars

trucks

1,567 trucks in the

Business Failures Fall
Commercial
in

the

week

spite

of

year

ago

the

higher, however, pushing the vehicle count for last
estimated 6,966 cars and trucks, compared to
6,598 in
previous week.
Ford of Canada's settlement of its long-term
strike should see Canadian
was

an

and

in

com¬

and

265

to

considerably the 162 which occurred in
1953.
Mortality was 34% below the prewar

Most of the week's downturn

was concentrated
among failures
$5,000 or more. These failures declined from
229 to 215, yet remained higher than last
year when 195 of this

size

of

recorded.

were

under $5,000,

comparable

liabilities in

Small

casualties,

those

involving liabilities

to 40, from 36 in the previous week and 38 in
week of 1954.
Fourteen businesses failed with

rose

of

excess

$100,000,

as

against 26

Steel

Nov.
American

9,

semi-finished

1953 Week

steel

going-abroad, says "Steel,"
weekly magazine of metalworking.
The significance of this
trend is that business in
foreign countries is good and it is a com¬
monly accepted belief that when business abroad is good there
will

be

no

economic

severe

dip in

The foreign steel business is

zine, that Europeans
steel in
ucts

addition to

they

are

are

the United States.

interested

in

is

product.

plates.

In

contrast,

only

You

can

effects

see

in

few

a

ago European plates were offered in the United
prices well below the general domestic market.

States

States

countries need all of their

foreign
into

iron

and

This, along with

is reflected in bullish tendencies
Atlantic.

increased

domestic

demand,

the seacoasts, particularly the

on

On the West Coast, a boat load of
scrap left San Fran¬

cisco for Japan,
destined for

another is ready to leave

February departure.

to

The need for scrap for the
continues to put their buyers

industries

steel

markets.

our

iron.

10.000-ton

and

several

All the vessels

class.

are

more

are

31

of

steel

now

1953.

Production

ended

Jan.

rate

of

output
steel

is the

highest since mid-November,
ingots and castings in the week

for

30 totaled 2,039,000 net tons.
This was at the rate
of today's all-time record capacity.
A week earlier, the

of 84.5%
was

83%, concludes this trade magazine.

erating rate of steel companies having 96.1% of the steelmaking
capacity of the entire industry will be at an average of
85.4% of
capacity for the week beginning Jan. 31, 1955, equivalent to
2,061,000 tons of ingots and steel for
castings as compared with 85.0%
(revised) and 2,051,000 tons a week ago.
The

industry's ingot production rate for the weeks in 1955 is
based on annual capacity of 125,828,310 tons as of
Jan. 1, 1955.
For the like week a month
ago the rate was 81.2% and pro¬
duction 1,960,000 tons. A year ago the actual
weekly production
placed at 1,960,000 tons

comparable
The

because

124,330,410 tons

74.4%.

or

capacity

percentage figures for

was

1954

are

based

than
On

capacity
annual

in

1955.

capacity of

power

of

electric

energy

distributed

Wholesale

industry for the week

ended

the

electric

Saturday, Jan. 29,
new all-time high

1955, was estimated at 10,003,000,000 kwh., a
record, according to the Edison Electric Institute. The previous
all-time high record at 9,981,000,000 kwh. was
established in the
previous week.
This week's output constituted a
gain of 22,000,000 kwh. above
that of the previous
week, when the actual output stood at 9,981,000,000 kwh., and an increase of 1,148,000,000
kwh., or 13.0% over
the comparable 1954 week and
1,852,000,000 kwh. over the like
week in 1953.

Loadings Drop 1.4% the Past Week

Loadings of

freight for the week ended Jan. 22, 1955,
1.4% below the preceding week,
according

revenue

decreased 9,287 cars, or
to the Association of American

Loadings totaled 635,653

Railroads.

increase of 18,440 cars or 3%
above the corresponding 1954
week, but a decrease of 61,862 cars
or 8.9%
below the correspondent week in 1953.
cars, an

U. S. Auto Output In Latest Week
Registers A
Drop Under All-Time High Set In June

the

down

side

barley,

were

steers.
sum

automobile

1955, according to

was

dollar

in

the

volume

week

the

of

re¬

esti¬

was

by Dun & Bradstreet, Inc.,
3 to 7% larger than
ago.
Regional estimates

from

varied from the comparable yearago
levels
by
the
following

percentages: New England —3 to
4-1; South 4-1 to 4-5; Northwest
-f-2 to -f-6; East, Southwest, and

Shoppers
events

most

the

interest

decreased,

Winter

level

The

4-7; Midwest

-{-8.
in

of

the
for

clearance

sales

and

apparel

demand

of

below

were

previous

week.
Winter

women's

coats, furs and dresses declined,
but Spring suits, shoes and acces¬
sories

sold
less

were

well.

Men's

popular,

clothes

promotional
merchandise moved more slowly
and
sales of Spring suits were
as

limited.

furnishings

trade

uneven

last

sales of carpets,

week.

sofa-beds,,

improved, purchases of heavy ap¬
pliances, radios and television sets*
declined.

in

of

Commodity Price Level Lifted By Tension

the

East.

The

this time

a

wholesale

year ago.

Grain

prices moved irregularly during the week but firmed
toward the close and most grains scored moderate advances

for the

on

Also

lending support were better export business in wheat,
pick-up in domestic flour trade and reports indicating the need
of still more moisture in the western
great plains.
Oats were
relatively firm, reflecting a good demand in the cash market and
the reported sale of 50,000 tons to
Turkey. Rye was buoyed by
small

export

business

and

strength

at

Winnipeg.

Weakness

in

largely reflected continued substantial producer marketings.

corn

Trading in grain futures

on the Chicago Board of Trade was
daily average sales totalling 50,600,bushels, against, 46,000,000 the previous week and 48,600,000

active

more

000

in the

trade.

last

week

week

same

Activity in
week-end

a

with

year ago.

the

domestic

following

fairly

flour market quieted

substantial

varieties around mid-week.

bookings

down

of

at

hard

the

Winter

The outlook for export flour business

appeared brighter.
The

world

tension

as

in

markets developed a stronger
Formosa situation mounted.
sugar

for

the

refined

only fair, with distributors
buying replacement supplies only for immediate needs. The green
3 cents

Trading in

a

sugar

pound

cocoa

higher
over

was

low.

on

leading roasters announced cuts

their

by

packed coffees.

vacuum

active

the past week, with prices

strength in the London market,
situation, and advancing prices

the Far Eastern
cocoa.

Warehouse stocks of

cocoa

showed

little

change in the week and totalled 95,269 bags, against 62,018
a
year ago.
Prime steers finished lower after selling at
highest prices in two years early in the week.
Hog prices were
very irregular during the week, while lambs developed consider¬
able strength at the close.
bags

Spot cotton prices moved moderately upward last week, with
sentiment

weeks and the

aided

by

the good volume

of

loan, which

late

in

strengthened

expectations

of

tight

free

of

gasoline

bought

about

as

food as during the preced¬
ing week, with pork, poultry and
eggs
among
the
more
popular-

Wholesalers' orders increased in
the

week, and

somewhat

sales volume

higher than in the

waif
same

week of 1954.

Many
delivery
dates
lenghtened and the prices of
goods edged slightly higher.
Department

sales

store

for the

loan

week

wero
some

on

a

taken from

as

10%

period last

year.

during the

week

reported at 108,700 bales, against 71,200

a

Volume

Orders
Retail sales in

the

Tapers

ended

Jan.

14

the

four

1955,

weeks

of

1%

Climb

In

Latest

period ended

While

like

was

the

Jan.

22,

was

re¬

1954, a loss
registered below that
year

of 1953.

Retail

trade

volume

in

NdW

York City the past week displayed
some

slight contraction compared

with

the

Trade
at

like

about

year

period

observers

the

of

good

extreme

year

ago.

the

Iosn

poor

last

figures

cold

weather

in part responsible

were

According

showing.
to

Board's

serve

a

placed

3% and pointed out the

and

last week

the

Federal

Re¬

index

departmentCity for
the weekly period ended Jan. 22,
1955, registered an increase of 2%
above the like period of last year.
store

sales in

New

York

the

In

preceding week, Jan. 15,
increase of 13% (revised)
was
reported from that of the
similar week in 1953; while for
the
four
weeks
ended
Jan. 22r
1955, an increase of 4% was re¬
ported. For the year 1954 the in¬
1955,

an

dex

advanced

1%

from

that

of

1953.

H. L. Jamieson Adds
SAN
drew

Week

to

The

Financial

FRANCISCO,

McClelland

has

Chronicle)

Calif.—An¬
been

added

to the staff of H. L. Jamieson

Inc.,

Co.,

Russ Building.

R. H. Moulton Adds

Wholesale

Wednesday of last week
slightly below the level of the prior week, as purchases of
on

ended

increase of 10%

an

corded. For

were

week earlier, with total

Off

22, 195b

the

un¬

outstanding on that date at 1,822,600 bales.
Mill consump¬
tion of cotton during the five-week December
period totalled
802,000 bales, according to the Bureau of the Census. This repre¬
sented a daily average of 32,100 bales, against the November rate
of 36,100 bales, and the December 1953 average of 32,200 bales.
Trade

Jan.

from

In the preceding
week, Jan. 15, 1955, an increase of
16% was registered from that of
the similar period in 1954, and for

(Special

entries

ended

advanced

supplies

loans

were

cars

much

season.

CCC

Retail

used

exports in recent

steadily increasing supply of 1954-crop cotton

der

Net

of

volume

of

Purchases

Housewives

was

as

more

influenced

for British West African

the

buying

the

there

continued to rise.

for

Demand

bullish

The

competition

domestic and

understone

trending

substantial

a

new

the Federal Reserve Board's index

was sluggish in
early trade but strengthened later
receipt of disturbing war news from the Far-East.

the

still

country-wide basis

period.

Wheat
with

for

from

items.

the Far East

daily

demand

dropped

decreased and prices were season¬

general

Far

the

high level of recent weeks,
was

in

commodity price index,
compiled by Dun & Bradstreet, Inc., closed at 279.66 on Jan. 25,
as
compared with 278.16 a week previous, and with 275.83 at

up

Although
automobiles

(Special

Modest

industry for the latest week, ended Jan. 28,
"Ward's Automotive Reports," assembled an




be

year

ally

total of the price per pound

commodity price level trended mildly upward
last week, influenced to a large
extent, by the growing tenseness

24, 1950 Period

The

higher wholesale prices
sugar, coffee, cottonseed
oil,

On

and

prunes

In
The

nervousness

by

trade

juvenile furniture and housewares

Bradstreet

were

oats,

rye,

lambs.

coffee market continued weak

of Jan. 1, 1954.

as

amount

Car

corn,

and

eggs

index represents the

of around

light and

&

The operating rate is not

lower

Electric Output Pushes Forward to New All-Time
High
Record In Previous Week
The

Dun

general use and its chief function
is to show the general trend of food prices at the wholesale level.

The American Iron and Steel Institute
announced that the op¬

was

the

a

May.

Right

week,

uptrend

foodstuffs and meats

raw

-

dustry, the biggest user of steel, is said to be in a production
push in anticipation of a possible strike of auto workers at the
end

straight

week's

wheat,

cocoa,

The

of the 9,000

The clue that business in the United States will remain
strong
is timely in its arrival.
Many people are wondering how strong
the steel business will become at
mid-year.
The automobile in¬

the

raisins, currants,

the

own

flour,

tea,

pig iron and scrap markets, too,
Importations of foreign iron into the
virtually non-existent now, for the foreign

are

to

a

Aiding in

declares this trade journal.
United

third

price index for Jan. 25 went to $6.88, the highest
16, when it also stood at $6.88. The latest figure re¬
drop of 2.0% from the year-ago index of $6.84, but it
is 15.4% above the pre-Korea level of
$5.96.

One of the prod¬

months
at

maga¬

inquiring in the United States for finished

the semi-finished

the

of

since Nov.
flects

for

good, states this trade

so

Rising for

total

trade

While

wholesale food

is

the

The

mated

reported

Wholesale Food Price Index Scores
Highest Level
In Ten-Week Period

Output This Week Reaches Highest Point Since

volume

Retailers of income

the

plants roaring again by mid-February.

The

week ago.

a

linens

considerably higher than in
corresponding week of 1954.

255

1939.

liabilities

household

Pacific Coast 4-3 to

Slightly

declined from

exceeded
of

and

4~ 4 to

industrial failures

Jan. 27, states Dun &
Bradstreet, Inc.
In
casualties remained above the toll of 233 a

dip,

similar week

the

de¬

ended

this

toll of 385 in

with

ap¬

parel
clined.

a

Canadian

week,

automobiles, heavy appliances,

tail
were

parable 1953 week.

respectively.

Truck volume the past week also
edged up slightly over the
previous week's turnout. General Motors Corp.,
Chevrolet, Willys,
International and Dodge sparked the gain.
Canadian plants, on the other hand, reported a
slight dip in
Jan. 22-29 truck
erecting from the previous week's total.
Car
week to

produced.

22,993 trucks

"Wards"
and

were

week, the agency reported there

on

Monday (Jan. 24) at Buick;
Ford Motor Co. and Pontiac aim to
top this performance with new
postwar weekly peaks of 44,150 and 11,800 cars,

assembly

with

week's

"Wards"

trucks

Last

ending

made.

were

Saturday last.
production is highlighted

car

record

set

and

is

four-year peak reached last

again the past week,

outlined

high

cars

past

manufactured.

were

Division

all-time

196,348

construction

trucks, holding to

work

the

cars,

The

notes, is running less than 6% under the
all-time high set in the week
ending June 24, 1950, when 196,348

cars

trucks built during

June

January,

record for

that

history and

month

week.

trucks amounted

The State of Trade and
manufactured

compared

161,150 (revised) in the
production total of cars and
to 185,147 units, an increase above the
preced¬
ing week's output of 1,590 units, states "Ward's." In the like week
of 1954 133,095 units were turned out.
Current weekly vehicle
previous

29

to

The

Financial

Chronicle)

LOS

V.

ANGELES, Calif.—Robert
Heth has been added to the

staff of R. H. Moulton & Company,
510

South Spring Street.

30

7 mutual investment funds

NATIONAL

SECURITIES

holdings of foreign

its

Commonwealth of Aus¬
tralia 3%s of 1969, $212,000 King¬
dom of Belgium 4s of 1987
and

objectives,currently in¬
350

on

$470,(XX!

secu¬

rities of American cor¬

700 shares of N. V.

For FREE

information folder and

Philips' Gloei-

lampenfabrieken.

prospectus, clip this ad
and mail with your name and address.

NATIONAL

SECURITIES &

RESEARCH

CORPORATION

Established 1930

York

120 Broadway, New York 5, New

Earlier

in

the

creased

"For

We

securities.

and

nomic
warrant

with

a

of
for

tli of

Prospectus may be obtained
from investment dealers or

i

200

Parker

EATON

broadening of

Corporation

Berkeley St., Boston, Mass.

taking

be

to

that

know

also

Chairman

Fund

The

Administration
that

a

said,

a

believes

Dividends

is

which

world,

in

Fund's

V
KeystoneFim
ofC anada7Lta.

electrical

equipment

Company seeking

long-term CAPITAL GROWTH
TAX BENEFITS

trade

and

Putnam Fund
ter

65.67 %

The

larger

ings

were

were

N.

5450,000

4

E.

'/as,

U.

$650,000

S.

50 Congress Street, Boston

Please send

me

9, Mass.

prospectus

Finance

Corp. note

$400,000 State Loan & Finance Corp. conv.

describing
D-H4

Name

5s,

1969

1,600 shares N. Y.,
RR. 6%
pfd.

10,000 shares

chines

Paper

Chicago & St. Louis

Halliburton

menting
1,500 shares

State

&

pfd.

2nd

$1.41

Corp.

Address

Pulp

Hudson

25,000 shares

Keystone Fund of Canada, Ltd.

City

1958
4%s,

1969

cleb.

the

deb. 2'As,

Corp.

Oil

Well

Ce¬

Co.

International Busines Ma¬
Corp.

class

Signal

Oil

&

Gas

shares

shares U. S. Steel Corp.

Trane

12,000 shares

Co.

Winn

&

Lovett

$101,000,000,

ties owned had

FUND

a

gain of more

than 50% over a year ago. Securi¬

the
cess

a

market value at

year-end of $29,846,000 in
of

Fund

announced

were

cost

as

compared

New

a

Inc.

Co.,

in

The

there

offering

Canadian

ex¬

with

$7,646,000 at the end of 1953.

would

of

Feb.

the
15

a

total

of

Electric
Lead

BROAD

STREET

were

in¬

ment

no

further

which

date

the

authorized.

approximately 50%

date

to

in

Sales of

as

share

each

of

than

shares, minus re¬

demptions, totaled $10,871,000, an

from

An

1953.

in

of assets
two invest¬

Street

Broad

stocks

made

Invest¬

up

more

of Broad Street Invest-

ing's net investment assets at the
of
1954
as
compared with

-end

beginning

the

at

of

the

Public utility common stock

Chemical Report
Stresses Atomic

recent
of

Energy

Fund

Chemical

The

report re¬

in

expansion

nuclear

the

chemistry.

F.

Eberstadt, President, said that the
atomic energy

THE COMMON

operations of port¬

folio

companies ranged from min¬
ing and refining uranium ores to

STOCK FUND
OF

producing fissionable materials.
The

"Eight port¬
plants and

adds:

report

Group Securities, Inc.
Incorporated 1933

folio companies operate
facilities

of

Atomic

the

Commission.

Energy

A mutual fund

Other portfolio com¬

for

fluoride,
alloys, zirconium, boron,
graphite and other materials es¬
sential to progress in the atomic

panies supply

of

companies

the application of

on

production

the

to

energy

electrical

the

of

number

working

atomic

Many of the

power.

trol of chemical processes,

development of
for the

investing

and

growth

stocks

through

common

selected

for their invest¬

ment

quality.

field.

energy

are

income

hydrogen

metal

A

PROSPECTUS
from your

Distributors
63 Wall

ON

REQUEST

investment dealer

Group, Incorporated

Street, New York 5, N. Y.

for the

products, or

new

diagnosis and treatment of

disease."
The

fund's

reported

portfolio companies
increases of

average

ap¬

proximately 2% in sales and 11%
in

net

IMCf'Sl

corresponding
vious year.

HI

ATOMIC SCIENCE

earnings for the first nine

was

available.

88%

83.5%

program

be¬

with

year.

months of 1954 compared with the

stocks

acquired

net sales of

over

$1,538,000

Common

in¬

and

quality

com¬

companies which were com¬

bined

$14.48 to $19.49.

new

30,

ing during the year.

stocks

24

that the investment

continuing

value

Asset

an

earlier.

a year

creased from

1954,

increase

an

Nov.

on

reported

additional

the $36,182,000

over

feel

increase of 74%

Investing Cor¬

31,

Dec.

on

of 77%

of

make

reported total assets of

million

poration reports net assets of $64,138,000

lots

of Bullock Fund."

$6,241,000

crease

in

will

more,

and

scientific knowledge, for the con¬

be

of the fund's assets had been in—
vested

Company

Company.

portfolio companies use radio
iosotopes for research to extend

500,000

He added that

come

General

National

purchase
or

pared
with
$14.8
million
the
year before. Net asset value dur¬
ing the year increased from $23
to $30.79 per share.

C.

G.

also announced

company's shares

on

and

Corporation

more

those

and

$21.1

Murphy Company. Reductions in
common
stock holdings included

se¬

original offering will be termin¬
ated.
As of Jan. 31, 1955 there
were
outstanding 329,780 shares
of

Oil

Gulf

to

share.

a

especially

directors

Bullock

holdings

the

from

each

should

elim¬
portfolio were
Emhart Manufacturing Company,
stock

Common

of $32.37,

in the amount of assets
bring about some reduc¬
tion in operating costs.
ing

Lines,

tion.

inated

mean

in the number of shares outstand¬

Inc., and Lily-Tulip Cup Corpora¬

"A

curities.

Templeton

Air

Eastern

like

purchases

Kaiser Alunminum
Common stock

Inc.,

ments,

will

is believed,

and

shares

100

increased were Ameri¬
Airlines Inc., Beckman Instru¬

can

shares

of $10.97

value

result, it

a

who

stock of
Jewel Tea

common

and

asset

investors,

portfolio in the fourth

were

"Following

the

asset value

net

an

holdings added to National

quarter

the board said,

distribution,

holder will have three shares with

As

Grand Union Company,

3, 1955.-

present prices this would

was

Investors'

March

on

pay¬

sharehold¬

that, instead of one share having

ing $13,141,000.

+

Growth Fund was
organized in 1954 to provide in¬
vestment management and broad

after
re¬

port for 1954 shows total net as¬

CANADIAN

At

on

the most important
factor in the increase, contribut¬
holdings

field

Templeton

that
Grocery

Fund's annual

Putnam

in

views

PROGRESS

Co. of Dallas.

Co.

Company

sets of

the

members

Mr.

10,000

on

hold¬

A

10,000

The

of

diversification

15,000 shares Remington Rand, Inc.
15,000 shares

$47,218,000

200%,

be available at a lower unit price.

assets

31, compared with $31,789,000
Dec. 31,
1953.
Improvement
the market value of investment

oil

elected, in¬
creasing the board from 11 to 14
members.
They
are:
Henry G.
Davis, of New York, partner in*
Robert Winthrop & Co., invest¬
ment
bankers,
and
Leroy
C.
Paslay, Dallas, Texas, oil operator
and partner in Marine Instrument

Telephone & Telegraph Co.

$500,000 General

Keystone Company

the

today. With this action, two other

1961
Steel

in

of

President

portfolio last quar¬

follows:

as

stock

common

W.STEINKRAUS,Pres¬
Bridgeport Brass Com¬
pany, has been elected a director
of
Templeton
Growth Fund of
Canada, Ltd., John M. Templeton,
ident

the

to

record

a

the

stocks.

common

HERMAN

new

under Canadian Law.s

in

PERSONAL

and

position

additions

new

in corporate

invested

was

company,

good growth prospects."
Other

in

and

to

and

paid

(13.8%),
power and light
(10.8%), insur¬
ance
(5.8%), banking (4.9%), and
chemical (4.9%) industries.

meet bur standards for
excellence of management, strong
seem,

financial

fully managed Canadian

electronic

was

6.24% of the
cash, U. S. Govern¬
and
short-term
notes,

15.10%

Philips' Gloeilampenfabrieken,
Dutch

than

bonds, 12.99% in preferred stocks,

this country, com¬
panies such as Royal Dutch, large
oil giant second only to our Stand¬
ard Oil of New Jersey, and N. V.
worldwide

share in 1954—

more

year-end,

was

ments,

in

be

always

totaled

net

fund's

mutual

reported

the

Fund

will

investment

a

in¬

1953.

At

struggle against Communism.

Putnam

totaled 62c

come

vital in

so

per

realized

of

investment

from

one-half cent

rising

a

distribution

profits in December.

"We

strongly

to promote

adjustment for the 40c

share

free flow of private capital

is the best way

increase

27%

earlier—a

year

after

Eisenhower

the

compared with $15.67

$19.51

was

"Although the great bulk of the

The

as¬

$141,441,616 up from $101,963,256 at the beginning of the
year.
Shares
outstanding
total
7,248,169 compared with 6,507,970,

place.
Important steps have al¬
ready been taken towards the
free convertibility of currencies."

our

and certain

Balanced

HOWARD

&

sets of

impressed," he

seems

i

announcing the 3-for-l stock

split,

reported 12 months

& Chemical Corp.

in many foreign coun¬ and the number of shareholders
tries during 1954.
A strong re¬ 23,471 compared with 20,359. Asset
surgence of confidence in private value per share on Dec. 31, 1954

free

Investment

not

does

continuous of¬

a

Annual Report shows net

23d

attractive

"with the sharp economic

enterprise

The

of record

In

on

holdings

standard of living throughout the

A

fund

The

make

to

recovery

capital and income

The

been

than the $11.76

$16.53

of

Dec.

fering of the shares.

eco¬

investments.

added,

portfolio
grow

intend

conditions

other

for

have

"We

selected

cautious

a

foreign

long-term

feel that

now

political

search

our

securities

a

value.

asset

im¬

an

Canadian

in

investment

portant

years

many

the Putnam Fund has had

fund

share, less

ticularly in the electronic and
atomic fields, will, no later than
six months from the offering date,
redeem its shares at 99% of net

these additions,

on

said,

Trustees,

mutual

made at $10.00
dealer discount of

85 cents.

George Putnam, Chairman of the

A

earlier.

Corp.

holdings

Commenting

diversified

tronics

Ltd., two

Petroleum.

Dutch

1MST0RS

31, 1954, nearly 41% greater

value

asset

ers

shareholders

to

Dec.

grocery

its

reported

an

The fund, with a primary obchains, and in¬
j e c t i v e of
long-term capital
in Traders
growth through investments ex¬
Finance Corp., a Canadian instal¬
pected to benefit materially from
ment finance company, and Royal new scientific
developments, par¬

Canadian

ration

that

stock distribution of

able March 25, 1955 to

Corpo¬

Co., Hemphill, Noyes & Co., and
Kidder, Peabody & Co. of 2,500,000 shares of Axe Science & Elec¬

a

invested in Dominion Stores, Ltd.
and Loblaw Groceterias,

this week

offering by W. E. Hutton &

an

INVESTORS

NATIONAL

The offering was

fund

the

year,

closed

WERE

BOOKS

included

investments

New

ties.

Split

Bullock Fund directors declared
a

By ROBERT R. RICH

securi¬

varying investment
over

Mutual Funds

during the last
quarter of 1954, continued to add
to

to

3-1 In March

Fund,

7 Mutual Funds with

vested in

Bullock

Putnam Increases
Foreign Holdings
Putnam

SERIES

porations.

Thursday, February 3, 1955

The Commercial and Financial Chronicle...

(626)

limntsh

<i

MUTUAL FUND.

of the pre¬

period

Sales of most chemical

companies continued to expand in
the fourth quarter and
is

a

vide

American

U. S. mutual fund designed to pro¬
a

diversified, managed investment

in stocks selected

on

the basis of- pos¬

participation in Canada's growth.
a
free booklet-prospectus by
mailing this advertisement to

Business Shares

Send for

The
anced

Established 1894

Company
between

selected

portfolio bal¬
preferred stocks
and common stocks

supervises
bonds

for

stability,
selected for growth.

a

and

NEW YORK 5

Name.




expected to show further

415,746.
$26.87

upon request

$55,627,976

—

Chicago

—

Atlanta

—-

31,

figure,

share,
or

of

$78,-

equal

compares

an

to

with

$19.61 per share on

1953.

shares

outstanding

Lord, A.bbktt & Co.
New York

This

per

2,917,703

high

year-end

at

The

of
the

fund

close

of

year

earlier.

MUTUAL

is

FUND, Inc.

designed to providemanaged investment

in

a

variety of

companies participating
in activities

resulting

from Atomic Science.

had

capital stock
1954

compared with 2,835,690 shares a
Los Angeles

ATOMIC DEVELOPMENT

a

reached

assets

fund's

The

Dec.

Prospectus

Address^

are

all-time
A Balanced Investment Fund

bullock

ONE WALL STREET,

able,

results for

1954, v/hen avail¬

gains in sales and earnings.

sible

calvin

the entire year

DfT THE FACTS AND F*£F FfOSFECTUS

MIMIC DEVELOPMEIT SECURITIES 01
1033 THIRTIETH STREET, N. W.

WASHINGTON 7, D. C

olume 181

Number 5400

The Commercial and Financial Chronicle

...

(627)

31

1

ildings,
e

though reduced during
still the largest of
industry as they were at the

year,

iy

were

Continued from page 7

,

id of 1953 and oils remained the
cond

Close d-e

change,

$22.80 on Dec. 31,
'54 from $18.64 a year earlier.

On

;

Dec.

31,

1954,

leached $5,752,000,
03,000

a

net

$4,-

known

j During 1954, the report dis¬
posed, a new investment position
holdings

and

eased

in

natural

Plans

manufacturing
fiblic utility stocks.

end

companies

and

eral

lic

jmds from net income in the
reaching

last

lare

).90

in

year,

1953

and

$0.97

$0.87 two

years

Dec.

<;ported

31,

1954,

the

sociation,

of

share

25.98

1953.

of Dec.

as

Tripp

was

$17.23

on

iec. 31, 1953.
j

At

the

ji%

end

of

1954

were

more shareholders in Fidelity

und

than

the

at

end

1953

of

jhile the number of shares

capital

out-

13%.
•

markets at

should

be

opinion, if
the

Canadian

The

In
my
tax laws followed

our

would

we

$28.19

$10,705,-

share, at the
1954, Harry H. Hagey, Jr.,
resident, disclosed.
or

per

of

This

with

compares

alue

of

lare,

net

a

asset

$7,118,348, or $22.67
Dec. 31, 1953.

on

Dividend
)taled

78

in

payments

per

5 cents and 28 cents

ble

under

for

respectively

the

The

Asset

Spencer

last

lent company

which can sell the
"short," borrow money,

larket

loan

nd

irms

for

hange
the

t

idle

periods of time
call loan rate, an-

had

it

recently

ended
agreement with

distribution

Distributors

'und
/hen

its shares

ales charge

ffer

to

member

Stock Ex-

brief

going

ounced
ts

to

money

of the New York

Corporation,

were

sold

with

of 8.75%, and

the

public

its

a

would

shares

at

et asset value.

The

fund,

prised

weeks

to

in

rork

1951,

last

ssets

reported

Sept.

3

in

.

New

total

$300,614, a
ecline from the previous May 31

sold

Borrowings by the fund, limited
y

the margin rules of the Federal
Board and the New York

leserve

tock,

Exchange, amounted to
39,122 last September, with secuin

ities

eld by

The

the

amount

the bank

total

of

of

$173,030

collateral.

as

deposits

short

on

ales and deferred charges on short
ales

cannot

nd's

exceed

10%

of

the

decline

S.

Spencer Grean, 33 West 42nd

York City, is President,

irector

and

f

the

fund.

arolina

investment
He

is

a

Director

oil

reasurer,

International

Corp.

and Hiram

mar-

it

should

at

ready

demonstrated

itself

the

in

realm of house

ownership. Under
the original law, a household that
sold at
tax.
was

profit had to pay a 25%

a

In

most

however, he

cases,

transferring

from

tion to another and he
ized

that

the

being taxed
tom,

and

was

This

on

the

same

to

locareal-

that

only

he

was

phan-

a

increment

the

of

house he

absurdity appealed to the

writers

a

was

applied

changed
in

profit

one
soon

purchasing.

tax

and

that

so

the

if

law

cap-

am

not

plied to
times

mistaken

off

if

any

such

the

we

This

would
rule

same

etary

and

ectors

are

Director.

Other

Di-

Jack

Posner, PosnerAdvertising Agency, and
Copen, President of the
& Co. textile firm.




making, that business
beginning to level off
they began
they saved

we

are

now

In

enter-

the liquidity and convertibillty of all markets is of great ima

bulge in the stock
become excessive

for the reasons
given above.
—From

a

report

proved

con-

the peo-

in

1954.

As
merchants
therefore
you
know that your customers have
the money.
It is up to you to
make

them

spend

and

more

tell

not

bady

is

born

of

tomer

that

you

the

moment

becomes

it

and

yours

a

cus-

a

cus-

stays

to

are

the

effect

that

the

United

States

by about
all the indications
feet

in

in-

1954

2,700,000,

and

the

to

are

ef-

that

an
increase in populaduring 1955 will amount to
another, roughly speaking, three
million people.
You have there-

fore another larger

added

the

00
and

similar

a

started

in

in

number

1955.

When

1,200,1954,

will

be

home

a

is

finished, people move in, usually
young people, and then the spendjng starts in order to furnish the
home

to make the home

and

liv-

of

shows that 43%

Delaware

are

women;

Fund

23%,

shareholders

men;

and

32%,

joint owners, and balance instituan<* I*duciaries.
The

women

average

shareholders, whose

investment

in

the

fund

is

$3,314, are in 47 states and several
foreign countries. They inelude
nurses,

women.

housewives,
doctors,

teachers,

and

'

business-

nr.

man'y
jshed

during 1955 indicates quite

cieariy

that

the

demand

everything that

goes into
is bound to be very large.

a

for

home

future

in

t

nf^von
of you

Wk

amount .of gold in back

^Lf'whfch
inmgs

wnicn

j

otherwise
oinerwise

you

do »»

said

^

T.

what

see

belief

,u'

mean

the

on

nart

of

'

J,

t

J™"here

to

ore

'
de,dine tn
hi<5 nes/ar
y.ei?' any decline in business
ac-

ilavp

we

to

tak.

this

int0

acSwmt:
.

?

u

whv

\ne

don't

y

,

.

fh

Pe"sl?"s'thbut,
an/?c n?
&s
®
?? P

,

a

° ?

van-

the

(2)

Moreover—and this is important—the people believe that if

anything
the

the

really

economy

government

to

were

happen

the

of
is

country

bound

to

step

is important in this world is not
what is but what the
people believe to be.
This
fornia.
older

spring I
I

was

was

in

out

Cali-

discussing with

gentlemen—one

about

an

85—

the

Y1 y

}

?

®

"Sonny," at

and said
may

and

as

age

other

he

follows:

he called

example, in 1947,

things,

I

not

am

smart

business Plans
ahead.

one year

for

more

Some of you

be planning on erecting a
or putting up a new building or or undertaking other large
capital expenditures. Permit me,
therefore, just for a moment to
look bey°nd 1955' 1 believe the
iong-range outlook for the United

secure tney

1

states

is better today than it has

+

increasing at

rate

a

which

few

a

Pian, tney do not nesitate to mort- years ago was thought impossible.1
.ir futun; ln m'der to sat- jn jggQ^ which for a man of*1 my
ls*y their present wants.
age is just around the corner, the,
bls Psychology will continue population of this country will be'
° p y a very important role in between 175 million to 180 milthe economy.
ijon
people.
The
population
?age *
.

Some

Less
,

Favorable

„fnrc.„ni

growth

Factors

up](lcc

w

aloJe ln 1955 than ln 1954» and
bnetly they are<

_

alone

is

important,

not

What is important is the ability of
pe0ple to buy. The standard
of living of the people is increas--

ing

#

(!) Defense expenditures in all
probability will be somewhat

a

We

every year.

nation

Fewer

becoming

are

middle

of

and

class

people,
people remain

fewer

smaller.
(2) Farm income in all prob-

in the lower income groups. There
is a great decentralization move-

ability will be somewhat smaller
than 1954-

ment from the congested

-

(3) Estimates of capital
ditures by

corporations

expen-

for

placed at 5% below 1954.
If these estimates are not
rect, if management is more

suburbs.

business

activity

There is

from

ment

cor-

ties, creating

1955

Economy Dynamic
before

research.

may

What
can

we

*

is

not

in

return

to

the

buyers'

jn

the

a

the

making.

making,

a

market

is

Competition

lines,

Business

in

will

be
general,

therefore, will have to utilize all
its

ingenuity to keep costs down,

(3)

The volume
will

be

1954, but the
remain

continue

the

men.

to

of business

in

higher

than in
number of failures

large.
be

new

that

A
new

created and old values

are

The boys will
separated from

The merger movement

I

greatly

am

mistaken,
a lasting

I believe the chances for
peace

the

are

case

of

capacity of the
country is great and is increasing
aimost daily. One may expect increased competition from abroad,
(2) Costs will continue to rise,
Margins of profit in some insqueezed.

creates

business.

economy means

Unless

Pact

productive

some

on

new

before.

ever

is keen and will increase because

in

doing

in-

creates

destroyed> and this is taking
place at a faster rate today than

the

stances,

of

one.

did

money

are

events

not

values

dynamic

a

history
much

Research

methods

dynamic

in
so

Research

products.

kind of business pattern

mode of life,

new

a

Our economy is
Never

the peak in 1953 and actually

expect?

the

op-

in

pattern?

move-

of

country
to
another,
generating
demand for all kinds of commodi-

dustry spend

business

section

one

will reach the level it reached at

the

cities to

great

a

1955

are

will

depression

For

•

whether the dress habits of the
mal® have deteriorated,
whether Pe°Ple sPend more on

nesiiaie to ouy on me insianmeni

prevent

me

is being spent

money

nestitate to ouy nomes on been during the last five decades.futo
The Population of this country is

dollars

a

the dis-

as

°U
ci0thing; in 1950, P«r,wapit®i
$132, and in1954
only $124.
Whether there
is
something
basically
wrong,

d«a t want to borrow. But wnen

great
economic
security of
people, and the belief of the
people, that the Government will
the

turned to

W&s

+vfa

«

^5,

gradual one, a return to boom
conditions
short
of
unforeseen
••

wfell

as

may

.

The jmprovement wiR be

peoj

giy high.

c

before

case

P^°P„f a^er
Tw

^ fu-

«

+

.

What will be the characteristics

egis ation and Pnya

socia

he
be

1 branch

u

?l5ing

of

,

will
will

on clothing than used to be the

than

surPass

P

tional income

But

S

.

wll
wf^

r

L

von

y

'

DU^s£v

00„IirH„

b

emnlnvmpnt
employment

enou8h to know- 1 d0 know, howknow Sonnv'von
ever' that if Pe°Ple have the
"eJ*'d, *ou know bonny, you m0ney they can be induced to
f"L ama"®r™a"
„y°u spend it on clothing.

,

onfm_T.

^

of

^^Lskfn
fro^takin^nlace™
£

ability
the

income

emntv

as much as
in 1954, or more, than in all prob-

considering

disposable

difficulties,

timistic and spends

Additional Security Factors
Moreover

The

parently less

ln?d ^

The

fact, therefore, that so
homes will have been fin-

^

Posable income.
niere nf
i^ner
The aPParel industry is still
if warwrittPn ^The sufferinS fr01^ the fact that aP-

a

i„d

™

3

>

1«

h

„

abie.

expect
you are

hP

Three factors will be less favor-

started

were

Pas^d on, and

!ie

customers

moment ago,

a

homes

retailers

you

came'to eo larger and wages wil1 be hi%her'
time came to go That in
increase the na-

lot °?d and his

0f the United States.

a serious decline.
The people believe in it, and what

.

™an

touch that gold, yet he wasnt

city than Phil-

to

can

in 1955?—bearing in mind

dad '

-

d°oJJ

tion

adelphia

'Yes

wt

Moreover, the entire population
0f

creased

Retailers' Expectations

^chest o^gold^"his^ella? Pe.0Ple will be larger. The people;
bad
fSjf A: Ji*
wlU be spending it and in all
Lh ? probability more will be spent and
fp^ntid less wiU be saved«*
S t^!ih
tntd
AssuminS no major labor'

be larger than in 1954.

may

the in¬

or

erately higher than at the beginning of the year,

had

the number of babies born in 1955

ElectronicsSndTelevision" in and prevent
t

'"The old

a

great many years. All

a

indications

movement

commodity prices

year

about

man

uniform

no

expected, but I would not
surprised if at the end of the

.

Wori

Next, the overall population is
increasing. In 1954 about 4,100,000 babies were born, and I need

to

by Chester

to

less.

save

■p
yf gf ' ,
be.are the people protected by

ing,

might

1954

year

uals will be higher in 1955 than

ap-

form of property.

as

prob¬

sb saicl> *es» dad.
interested to a considerable exsa*d> Tt *s
Sold and tent in the soft goods industries,
^ Is yours, but you must promise In my opinion the volume of renot to touch it unless you are tail trade in 1955 will be higher
dire circumstances.'
than in 1954 for these reasons:
-

A™

was

house and replaced it withshort period of time, the

better

<&\d

cnn

have the money. The disposable
income in the hands of Individ-

a

ital gains tax did not
apply.

all

be

What

woufdn>t

individual

an

in

dex of wholesale prices was mod-

die, and he called in his only
and he said to him, 'Son, you
know that big chest I have in the

pie are offered new merchandise,
new-type merchandise and good
values, people buy because they

change had a profound effect on
the liquidity of real
estate, and if
I

The

old

an

"I

to

was

As I said

This transfer tax aspect has al-

G.

Shields,
lawyer, is Vice-President, Sec-

open

tax

This is

.

Arnold

the

or.o

future time.

some

of

Levine, a certified
ublic accountant, is Director and

bin

than

Casualty Insurance Co.,

Builders

arry

any

the

of

advisor

rd Director and President of the

ulius

account

more

market

t., New

be

almost

situation; it congests

portance, and

assets.

under

on

per-

cannot

kets and is apt to have the result
of having the market go higher
than it normally would only to

sold

f $404,693.

con-

large

a

securities

the fear of double tax.
bad

net

of

have

and

what

see

of

increase

organized

present law for an

personally gone over
large accounts in the

very

few

was

the people will spent

clusively that whenever

ferred with others, and I am sur-

a

Grean
Fund, a
open-end invest-

on-diversified

in

tomer for

have

some

or

Value

possi-

levy.

I

conditions

at

trans-

very

thereafter his estate would pay a
double tax through the inherit-

logically

Offers

It is

capital
a

to reduce

then if he

centage

Grean Fund

much

does

substantial capital gains tax,
should die shortly

a

and

ance

1953.

shares

pattern,

the

individual to sell securities calling

1954

cents

per share from
rdinary
income and
43
cents
-orti capital gains compared with

l

that

are

arnbam

79,

English

or

be safer today.

facts

market liquidity.

totaled

nar-

broadening.

-

;ET ASSETS of The Stein Roe &

nd

—

time when they

a

fer tax that

Fund

—-

gains tax is, in substance,

1

means

activity

less.

and that it has done much to

landing increased approximately
t

not

Board."

going to learn
—n-j
way that our so-called
gains tax is a misnomer
iu-i.

hard

row

there

expendi-

r

When the people
began to realthat a major depression was

are

,—j

"There

ize

Taxes

on

we"

think

I
._

the

31, 1954,

with

compared

consumption

he said,
story."

want to tell you a

cenar.

in the middle of
1954,
to
spend more and '

Net asset value

sonny—"Sonny,"

me

"The

spend"and

to

shares

"Big

is

year

it.

a

end

br

the

on

the

that disposable inpeople will be larger.
The people will have more
money

fund

pt asset value of $91,793,299 at

he

have

14

of

doubtful.

of the

come

Na¬

and

half

high

a

in turn

members of the As¬

are

second

Employment is increasing
and unemployment is
decreasing.
Wages are still increasing. That

Of the 30 closed-end trusts

net assets of $163,686,an increase of 78.3% over the

j>3,

Corp.

And

son

Second Half

(1)

Aviation.

listed
of

Tri-

are

I

the

level during 1955 and
probably will be higher this year
than last year for these reasons:

S.

who

1; o.
As

at

popular

now

why
for

is

year

tures which held up so well during 1954 in all probability will be

Corp., General Ameri¬
Investors, General Pub¬

tional

per

with

of

Lehman

Petroleum

a

compared

shares

the

somewhat

General

Service, Adams Express,
& Foreign Securities,

U.

of

reason

outlook

quite
It is bound to be
good.

The
still

Corp.,
Atlas Corp., Carriers & Gen¬

Fidelity Fund sharethe highest divi-

ind's 25-year history,
distribution
of

buy

Continental,

)lders received

Ital

to

half

the

the

The

Investment

with these investors

can

URING1954

of

be

is

that

clear.

on

upbuilding and steel stocks,
principal
i eductions
were
in
temical, food and beverage, misi.'llaneous

are

these companies totaled 1,108
Dec. 31, 19.54. The closed-

inrailroad,

were

gas,

first

Companies reports.

established in the automobile

as

jidustry

stated

MIP, the National

as

Association

That

ness.

attract

using
the Exchange's Monthly In¬
vestment
Plan, popularly

earlier,

year

to

investors who

new

assets

from

up

continue

Again
can

•

the New York Stock Ex¬

on

to

rose

The Current Business Outlook

d investment

n

companies, with shares listed

IIITEHALL FUND, reported to
tareholders that net asseis per

continue.

ability commodity prices will inch
little higher.

a

By Closed-End Shares

largest holding.

are

will

Investors Attracted

the

a

better today
year

ratification

the

balance

than

As

ago.

of

of

was

a

result

the

Paris

power

was

shifted in favor of the free nations
of

the

hind

world.

the Iron

troubles
or

than

,

The

countries

Curtain have
we

actually

be-

more

know

realize.

All this leads me to
that we may enter a

the belief

period of
prolonged peace during which all
the ingenuity of the American
people will be used to increase
the standard of living of the peopie.

This is the type of world
look forward to, and such

we can

world promises well for the
tailers of the United States.

a

re-

I

32

The Commercial and Financial Chronicle...Thursday,

(628)

individuals

of

groups

Continued from first page

i

living family heads and "other" family senting the change in each par¬

for

heads

Family Groups

been

the

since

1950.

for

lowest

continued

abroad

year

any

be

to

rela¬

a

tively minor factor, totaling about
quarter of

a

Perhaps

million.

a

we

can

understanding
Chart

from
broad

1

of

a better
population

gain

our

shows

which

it

by

for each year
the half century from 1920 to

in

age

groups

The

1970.

are from
working years
65; and the increasingly
age

groups

birth to age 18; the

to age

up

important retirement
and

our

population in our lifetime.
fact, the rate of growth in this
«century for
the group 65 and

extension

of

human

life

has been unparalleled

of

tory

■

<

in the his¬
addition to this

In

man.

gentlemen are

guilty of wasting your time were

since

dominant role

which

probably just as familiar with this
trend as I, so that I would
be
I

to

1920

birth rates
declined steadily by about onethird.
They remained at rela¬
tively low levels throughout the
1930's and then rose sharply to
the
baby boom of the postwar
The

1933,

progress of
to the
see

the

It

low

the

point

In

was

You

the decade from

a

me

the future

that

to

in housing in the
will be importantly
by the factors I have

come

just mentioned — i.e., past birth
rates,
life
extension,
and
the

growth of suburban living.
Let's

.

turn

now

to

a

of

topic

18,

1950
in

played

the demand for

the birth rate.

to

influenced

immediate

reached about

1960, however, the growth

in

developments

can

under

group

on

seems

years

births since the 1920's

for

to the suburbs has

its effect

on

older age groups.

that

1940.

curves

The effect of this

it.

discuss

housing and undoubtedly has had

Chart 1
.show this pattern and reflect the
years.

to

move

1920.

From

classified
families

people
who
are
being heads of

the

Among

com¬

our

not

as

wives

the

are

husbands shown

of

the

the left of the

on

available.

this

of

type

now

country

this

in

live

who

Forces

the

Fortunately,

the span of most of

cover

groups

to the suburbs. You

gives every
indication of continuing, there is
another fact of great immediate
concern
to us—the peculiar pat¬
tern of birth rates in the period
force,

potent

rela¬

data like civilians are distributed for
the post¬
purposes of the chart just as the
war
years and provide, I think,
rest of the civilian population.
over has been double that of the
significant
information
on
the
We have divided the remainder
population as a whole.
dynamic forces at work. Let me
Another
development
of
the remind you that for purposes of of the group classified as not being
highest
significance during the this chart there is one and only heads of families into adults and
postwar period which I shall do one head for every family group, children at the age of 18 because,
as
no more than
mention is the trek so that a count of heads of
you will see, the adult group

1920,

the

with

living

and the arrows are

ticular group,

placed as to cumulate the data
for the period.
so

There

first

several things of in¬

are

this

about

terest

place,

chart.

increase

the

In

the

in

the

number of husbands accounted for

couples.

In

population growth
has been spurred on by the con¬
quest of disease, with the result
that

ried

of the

own.

Since

but in

plex modern society it has been
broadened far beyond just mar¬

Housing

"individual"

the

not

tives.

of family groups is

Adam

as

information

of 65

might point out that
projections into the future

the
are

years

I

over.

old

that

are

Thus, if we are to chart. I'm sure that the Bureau of
only 65% of the gain in all family
gain
an
understanding
of the the Census is a bit old fashioned, heads. "Individual"
family heads,
group will be very large.
The effect of
family groups on hous¬ and
probably
in
most
instances
is
on the other hand,
accounted for
group from
18 to 34 years will
ing, we must consider many types at odds with the domestic facts, in
37%
of
the
increase
in all family
actually show a net decline in
of family groups—not just married
picking husbands as the heads of heads, while "other" family heads
the decade of the 1950's and will
couples.
married couple families.
reach a low point around
actually decreased.
i960.
Chart 2 shows the family groups
Also
classified
as
not
The dip would be as clearly de¬
being
But one of the most interesting
as
enumerated by the Bureau of
heads of families are all inmates
fined for the two older age groups
things about the chart, I think, is
the Census. The chart divides the
of hospitals, asylums, prisons and the decrease of 3.6 million in the
as for the two younger groups if
entire population between people
the like. All our Armed Forces
the time scale of the chart were
group of people of 18 years and
who head
a
family group and who live in barracks in this coun¬
extended
far
enough
into the
over classified as not being heads
people who do not head a family
future.
try or who are stationed overseas of families and hence living at
Actually, the older age
group, on the basis of data for are
included
in
the
specially home. We know that this group
groups show a rapid rise up to
the months
of April,
1947 and marked bar on the right of the
is only a small fraction of all in¬
1970, reflecting to a large extent
April, 1953—the earliest and latest
chart, but those of our Armed dividuals 18 years and over, and
the extraordinary life extension

immigration from

Net

The concept
as

is

heads

purposes.

Factors Affecting
Demand for

February 3, 1955

mand

to

this

importance in the de¬

for

division

housing,

of

the

the

namely,

population

into

is also

Married couples, as measured

of

by
comprise
families.
I

might point out that

the Census

of

70%

all

heads

Bureau counts

for this
lies

as

married couples

where

"Other"

ing of two

together,

family groups, consist¬
or more relatives living
constitute 11% of all

can

"Individual"

head,

one

heads

of

difference

comprise

groups,

families.

of

19%
The

I

the

of

also that

see

one

out of every

of

family

in

group,

the dates shown.
Now I think that the

changes in

the six-year
period
are
important
to
our
understanding
of the situation.

these

all

essential

Chart

"individual"

between

what

from

the sense in
which I have defined it, on both
a

family

all

three individuals was the head

heads of families.

representing, in effect, one-person
families, or two or more persons
who are not relatives, but with

that

—live, for statistical purposes at
least, in the families headed by
the group on the left. This is true
except for the Armed Forces and
the institutional population.
You

gether.

groups

3

over

shows

repre¬

arrow

an

18 years and over
their status and became

group

age

changed

This is

heads of families.

a

start¬

Improvements

and

health

in

benefits under the Social Security

made

undoubtedly

have

Act

it

for individuals of ad¬
vanced age to continue to live in
possible

their homes rather than to double
up

with

think

their

that

in

has been some

families.
recent

Also,

years

I

there

tendency for young

people just starting out on their
careers to travel considerable dis¬
tances from

home in seeking em¬

ployment rather than to work lo¬
cally and live with their parents.

Finally,

as we

shall see later, the

m

10

HEADS OF

HEADS OF

FAMILY GROUPS

ALL OTHERS

Millions

Husbands

IP

1947

million

POPULATION INCREASE 1947-1953

POPULATION OF THE UNITED STATES

FAMILY GROUPS

18 years
7

period 1947 to 1953. This
that
during the period,
10
million people in the

CHART

CHART II

CHART I

POPULATION BY BROAD AGE GROUPS

some

entire

the

by

thing, the age at marriage during
this period was distinctly lower
than in previous years.

large

population
classified as not being heads of
families—the group on the right

only those fami¬
both spouses live to¬

increased

have

a

follows

said

purpose

the

means

that

of all individuals

over

ling change and we can only guess
at
the
reasons
for it. For one

It

the number of husbands,

and

part of the
present unsold market for housing.
represents

count of groups.

a

group

in

further

know

we

Other Families

ll

♦

Individuals
jj! inL

Other

TOTAL

HEADS

Individuals
ALL OTHERS

Wives

3

1953

Institutional

^Institutional
Armed Forres in borracks
J

20

■

a,

Armed Forces

or overseas

Al Others 18 t Over

I

40

120

c

Al Others Under 18

y,
%

Million
TOTAL ALL OTHERS

CHART

IV

CHART V

FAMILY GROUPS AND PUCES OF AB0DE-1953
IY TYPE OF GROUP

BY PUCE OF ABODE

DISTRIBUTION OF TOTAL HOUSEHOLDS

»

u^.3%

18.9X
-

Households of Others
11.1%

9.4V

II liif

"

With Own

Families
-

80

-

70.0%




-

Own Households
20
-

-

60

88.3V

-

,

Households

30
-

»■

OTHER FAMILIES

Millions

ACTUAL

Other

IliM

Carried Couples

MARRIED COUPLES

50

1947-53

100

Individuals

*•

ACTUAL AND POTENTIAL HOUSEHOLD HEADS

DISTRIBUTION OF INCREASE
percent

*\Quosi-Households
}i \'

*

/i'Z-

Other families

1953

'

40

-

20

-

A.

rc

^

SWMl

10
-

-

CHART VI

CHANGING COMPOSITION OF HOUSEHOLDS

1947

Individuals

-f'V

h

POTENTIAL
Without Own
Households

47

'50

53

'47

INDIVIDUALS

TOTAL

Volume 181

Number 5400

06

The Commercial and Financial Chronicle

...

(629)
number

of

some

individuals

has

18

age

reaching
shrinking for

been

that, while the proportion of
ried.

years.

increased

of

the

relative

"individual"

i.e., the so-called

their

I

and

I

their

more

independently
Many of these

families.

together

with

adults

} market in

shall

I

as

the

and

accounted

for

the population increase

55%

a

to

1953

is

road;
Population Lives

Let's look at where
lives

As I

said

also

we

members of

a

know

family

group

where

size

own

the

vidual"

heads

and 87%

of

of

family

the

"sold"

Before

look

we

market

at

people

inroads

and

the pros¬

let's

ages,

as

71/2

than

million,
the

or

increase

in

hotels
their

and

own

the

lodging

one

-

that

far

we

have still

The

go.

out of

that

into

much

households

While total

have

their
curves

that

while

by 62%.
Remembering
that the period was one of high
marriage rates, it is rather start¬

tial

ling to realize the importance of

the

the increase in households headed

plicated

shows

CHART

the

at

the

We

groups

is

at

of

spend

only

market

we

is

and

I

■'

but little

9

shows

.shrinkage.
the

the

This

number

and

76%

of

for

reason

chart
of

com¬

females

reaching the exact age 18 during
each calendar year with the num¬
ber of births of females 18

minute

years

earlier.

The

time

upper

scale

shows the year of
birth, and

the

Continued

34

num-

on

page

'1

*

time
h

/

the

for

potential

population

50

unsold

Ratio!

perhousehold

40

in

the

Another

households

lodgers,

others

of

roommates

30

live

16%

4
1

living at home with

over,

5,

/

"in¬

as

3
J

servants. The

thirds

of

remaining 6%, twoare
men, live in
lodging houses.

As

the

is

under

30,

for

made

ex¬

shows, slightly
potential market
but if allowance is

chart

half of this

over

in

20

whom

hotels and

future

which

two

sorbed

in

marriages,

individuals

/households

in

*

.

ab¬

are

10

each, and I might say
the prospects for such mar¬
riages are still bright under 30,
the potential contribution of this
group to future household forma¬
tion will be considerably smaller
than might appear from the chart.
The market potentialities of the
unsold group 30 years of age and
over appear rather limited. Nearly
that

The

increased

com¬

between

three-quarters

of

this

5

1

1870

are

group

.

1

1890

1

1

,

1

1910

I

1

1930

till

1950

1970

CHART IX

MARRIED COUPLES

APRIL 1953

FEMALES REACHING AGE 18 AND FEMALE BIRTHS 18 YEARS
EARLIER

UNSOLD MARKET

Year of Birth

Millions
2i

1920

43.6

1930

1950

Millions

I

2.0
MARRIED
40

COUPLES

91% Females

IV, Females
—h—

30.1

of DocKne

Couples

35

1.5

Couples with
OTHER
FAMILIES

Period^

-2.0

All Married

Median Age 32.9

Net Increase in

Both Spouses Present

30

All Married

Couples

1.0

1

Husband Absent

53.3
25

in Armed Forres

-0.5

51V Females

64V Females

INDIVIDUALS
Divorces

20
1940

Age

t

»

'

1945

1

'

'

'

'

1950

'

1

i-i-i

1955

'

1940

■

'

t

'

'

1945

'

'

'

1

I

1950

'

I

'

'

'0

1955

0
1930
IoOwb

Hoosehehk

n

Living with Own Families □
LMng in Households of Others




Q

|n QuasiHouseholds

j

domestic

or

45

Median Age

you

households

own

i>

CHART Vni

SOLO MARKET

their

population/-—^

100

house¬

substantial

families.

VH
-

as

150

sub¬

—

their

declined

somewhat

matter

a

200

dividual" family heads. Some 78%
these
"individuals"
those

right indicate

transfers

is

because,

}**%

course,

own

of

plain

the

us

Millions

chart for

couples and the
family groups. As you can

The

and by the fact that when

CHARACTERISTICS OF THE MARKET FOR HOUSEHOLDS

couples
to

RATIO OF POPULATION TO HOUSEHOLDS

line

equal

case

been

CHART X

the unsold market is small.

see,

by
5% million. I might point out that

by

their

has

married

"other"

couples

quite

households

picture

need

the

on

possi¬

increase

heads

the

This,

up

a

couples

holds.

7Vz million, the number of poten¬
household

two

market is in every

setting

spend

section of Chart 8 shows the

family group.

market.

us

dis¬

dashed

into

on

let

married
concern

pares

looking at recent history in the
marriage market. The left-hand

is that the median age of the

fore

formation

households.

own

total

is. shown

unsold

distance yet to

come

First

in
of

this

important
they marry

as

married

Chart

people

most

part of the market

for

group,

The

area

back, that there is

the

Since that time, both
declined
substan¬

married couples comprise
the sold market.

18 who will constitute

future

have

all

have

We saw,

of

di¬

immediately follow¬

know, 96% of all married couples

only poten¬

group

the

and

tially and the net annual increase

and set up new households.

reflects the fact that people have
to become established in life be¬

heads

clearly that

is

under

shows

which

shrinking even more rapidly. This
slowing down in the net increase

households

households.

new

charts

the

the

means

to

marriages

rose

curves

Marriages

for

of

ing the War.

to

great build¬

in

tremendous

stantially higher than that of the

of drawing down the num¬
ber of family groups that do not

by 19% in
part of them

5

has

each

18

the

of

group.

sold

pense

"individuals," i.e., the
person
family
groups,
in¬

Chart

some

the

vorces

section

levels

represent

areas

in

family

Census

married

evidence

no

few

a

for households

numbers

not

look

right-hand

record

represented in the top layer—are

household

existing

by

One point that will strike your

heads

as

is

in

three

divides

eye

men.

exhausted

of

The

the

existing heads of families

among

a

enclosed

a

for

market

you,

numbers

of

is

couples. The top
includes husbands

diminishing rate.

important to note that the

tial for

each type of

"other"
family groups. For
"individual" heads of families, the
chart would seem to suggest that

by

individuals.

important

more

It is

because, as I shall show
the potentialities of this un¬

market

time

cannot

we

source

Outlook

unsold

figure

same

this

has

decline

get

women

defining the husband as
of the family, women

about

among

creased

by

and

that

potential

the

The

households. I don't want you
6xcited about this large

own

to

at

married

Forces, has been in¬
creasing substantially, though at a

ing boom.

parts at the median age. The pro¬
portion of each group headed by

heads, I have

of

the

the

as

tributed by age of the head of the

households.

course,

Bureau

it

less
than
20%
and
that
nearly 18 million do not have their

The

and

increased

period

headed

on

head

have

heads

houses

households.

households

the

bilities

during the period of
family groups out of
or

where

The chart shows

movement

million

I

are

of family groups living in all types
of abode. This curious fact reflects

the households of others

of

not,

that

see

market

large and that

been

of this chart is
and

we

the

three

number

own

actual

of families than

million

2

heads.

the

During the six years from 1947
to 1953, total households increased

2

the

potential heads in the

as

are

insists

glance

Existing Households

;

the

ilies

among

might note that, exclud¬
ing households of married couples

on

briefly at this sold market.

a

the

households

purpose

family
25%,

types of family
heads, i.e., married, "other" and
"individual" family heads.

family heads that
the

over

remaining unsold market
only three-fourths of a million.

of

the

family groups but they are an
important reservoir in the present
population of potential household

the

of additional households

population

more

of

own

declined

sold

un¬

Chart 7 compares some of the
characteristics of the sold and the

ex¬

of

household

further

for

unsold

almost

un¬

to

market

of

"other"

for

has

unsold

clue

each

million. The

now

at home with their families. These

represent

the

show

people
house¬

own

Character of the Unsold Market

"individual" grid those people 18
years of age and over who live

groups

of the heads of family
groups with their own households

pects

for

curve

the

included

"indi¬

The 88%

the

other

married

of

curve,
which
in the Armed

us that the
martial prospects of this
group are
not as
bright as for the group
under 30.

sold market appear limited.

Market

a

number of household

of "other" heads of fam¬

prospects

us

do not have their

ily groups.

market.

Unsold

unsold

their

Since
to

households

61%

the

number

have

i.e.,

with

which

how large the
really is among

gives

curves

the

hotels and lodging houses. It is of
interest that some 96% of married
contrasted

family groups.

types of family heads, i.e., mar¬
ried, "other" and "individual"
family heads.
One curve shows

the

in what the Census Bureau chooses
to
call
"quasi households,"

as

of

two

others; and the remaining 2% live

own

1953.

and it
determine how

to

the

6

in

ber

parents. Statistics tell

a

But for "individual" heads of fam¬

situation

a

market

groups
with a

of

existing heads of families. It shows

the

households; not quite 10% are
doubled-up in the households of

couples have their

is,

of

Chart

family live.

We see that some 88% of
heads of families live in their

that

market

has| been nearly

about IV2

sold

be to the end of this

may

Size

4.

we

know

his

13%

isting heads of families.

popula¬
Chart

on

previously, if

where the head of

lives,

our

shown

as

only

indefinitely

on

interest

near we

sold

tion

go

there

declined

only

in those headed

was

important fact then is that

of

that

who do not have their

million increase

constituted

cannot

baby boom.
the

7^

Clearly, this is

reflection of the great postwar

Where

the

number of heads of

of

during the

six-year period from 1947
•—a

is

4

and live at home with

families, and in many cases
people are taking care of aged

the

However, the gist of this chart

in this

during the six years, the growth
in
households
has
considerably
outstripped
the
growth
in
the

is in the group now under
18 years of age and
living at home.

group

more

of

The

potential

the next decade

in¬

unmarried

their

and
the
unsold
market
After
during the six years holds,
studying
this
chart
I
striking. Almost a among existing married couples is think you will agree that the un¬

total households in

half

This

even

show you

greatest

13%

50%

groups

tial market for households in the

But,

to

by individuals, i.e., the one-person
family group, although such

living in the homes of
families, constitute a poten¬

presently,

individuals

10%

in households

18

over

\ future.

by

from

in households

one-person fam¬

third

people,

family heads marry
and set up a household, on^potential head disappears.

The distribution of the increase

live
of

two potential

mar¬

actually

period.

importance

family head,
is

and

headed

holds

creased

ily group, with adults tending to
more

households

shrank, the proportion of house¬

Thus we see that the postwar
period has been characterized by
the

couple

33

1940

Year of

1950

Reaching Age 18

1960

34

The Commercial and Financial Chronicle ,\..

(630)

Continued

jrom

and

33

page

—first, that there is an established
p a tt e r n in these percentages

growth will be attributable sole

make

which

to

over.

in which age 18 was reached.
moving average has been used

year

A

birth

the

smooth

to

A

curve.

are

near

couples will have to change from
a
down trend to an up trend.

two

reflection

curves—a

primar¬

The shaded section indicates the

period cf decline in birth rates in
the years from 1921 to 1933. Girl
children

to

the

1951,

scale.
real
in

in

born

reached

these

shown

as

Here

1939

lower
see the

the

on

think

I

years

18 from

of

age

you

why the net increase
married
couples
has
been
reason

this chart

girls marry at some time in
lives,
and 85%
of those

their

before the age of 26.

marry

the

thermore,
marry

of

in

surprisingly short

a

view

of

these

facts,

hesitancy in taking

no

timistic

ing

view

of

chart.

this

future

it

facts

future

the

about

of

the

mar¬

riages and find that here the pic¬
ture is a rather optimistic one.
Let

now

us

examine the

see

what levels

we

think

1960

and

are

1970.

based

on

18 the largest
is

but

also

the

comparable period,

but the r^te of increase is also the

think

I

we

now

heads of households.

in

viduals
were

in

This

1950.

for

the

These

wives,

households
and

want to

their

in

husbands

prospects for further
You

will

that

not

do

hence

have

might

become

households

new

look

us

Chart

at

is

rela¬

12

which

shows at each age the proportions
of

and

men

population
heads.

ilar

women

who

in

the

1950

household

were

This chart also shows sim¬
the

for

data

1930

and

1940

I think that you can see

censuses.

never

the
to

Chart
the

13

shows

households

in

and

an

annual

average

the

1940's

the

of

and

1960's

these
shaded

major

show

areas

that

each

at

Except for individuals, t
market among existi
family heads has been virtual

exhausted;
(3) We have passed
in

group.

age

You

will

last factor is
roads

that

remember
measure

a

of

portant in the decades

decade

the

slightly

up through
1950's—appears to have little

1960's.

1960's this

of the

holds

will have

The

chart

said

source

dried

also

about

of house¬

what

the

will

You

of

decade

that

note

the

1960's

in

the

expeet

we

household growth to be somewhat

the

greater than for

household1

of

the

formation
the

1950's

than

lower

1960's

t'jf

will

~t1

Househci

the

should

|

in

during

1940's.

during

4

the le\

formation
the

of

that

decade

be

;j

somewl^

higher and due principally to t
large number of people in t
present population under 18 ye;
of age.

up.

confirms

importance in
household formation of the large
group of people in our population
now
under 18 and of the rapid
rise over the next 15 years in the
number of females reaching age
18.

We estimate

decade

Another way of

saying this is that
we
are
coming close to the end
of the road in drawing down the
unsold market, and in the decade

(4)

^

reachi

anticipate
increase.
Man¬

can

should rise markedly;

ages

.market, and it is. significant, I
think, " that this factor—so im¬

in the decade of the

and

unprecedented

of the in¬

low poi;

a

the number of people

adulthood

this

being made into the unsold

effect

fa'mi

one-person

have been increasi
rapidly than other typ

(2)

to

holds

futui

on

unsold

and the open
part of the gain

changes in the proportion
the population heading house¬

of

repetition,

bearing

i.e.,

more

gain in each decade due to
population increase and shifting
distribution;

of

groups,

the

age

risk

(1) "Individual" heads of hou

holds,

The
part of

that

the

important

factors.

show

areas

t

household formation.

the viewpoint of

from

three

a

dov

like to summarize for you the fa
tors which, I think, may have

projec¬

our

drawing

Conclusion

tions for the decades of the 1950's

I

further

the

At

analysis of
increase in

decades

and

tl

1950's and that of the 1960's.

to be household heads.

last

decade

It

has

been a privilege to t;
this morning, and if I ha
succeeded in throwing any ligl

to you

this

on

subject

complex

I

sh

Household—A

hou

feel rewarded.
1 De'inition

hold

consists

of

a

those

of

together, who occupy
(A dwelling unit is a
tra;»®r, etc.)
The
as

number

individuals, liv:i
a
dwelling uij
house, apartme

of households

is

the

sal

the number of occupied dwelling un

CHART XIH

AVERAGE ANNUAL INCREASE IN HOUSEHOLDS

PERCENT OF POPULATION HEADING HOUSEHOLDS

POPULATION HEADING HOUSEHOLDS-!950

of

100% of the people in any age

group

CHART Xn

CHART XI

of

percentages will
levels, where
might require close

estimate

However,

unsold
market.
This,
think, will be the significa
change between the decade of t

as¬

the

rise to unreasonable

house¬

tively small.
Let

estimating future households is
the age distribution in 1960 and
1970 of the population 15 years

live

course,

formation.

We estimate that the pop¬

in the age distribu¬
What we
know here for purposes of

of

this chart.

on

therefore, that the number of
and

population:

know

we

not for the

with

not

are

of

the

number

heads of households

and

1940's.

population factors, i.e., popuJ;

result

group

fu¬
ture.
In case you may think that
the prospects are bright for in¬
creasing the number of female
heads of households, we have
plotted the number of wives of

females

Shifts

age

past, but

heads

of

each

pattern

that

sume

who
actually heads of households

holds

(2)

in

heavy shading the number of indi¬

(1) Increase in the total popu¬

tion

this

serve

the

tion
increases
and
shifting
distributions, and will not be

estimates; and second, that
percentages for males have
been
rising.
When we forecast
households, then, we must pre¬

due

this chart there is shown

On

household

fe¬

period,

as

see,

lation:

age

long

the

and 196 million by 1970.

increase

we can be rela¬
of
this distribution
projections out to 1970 so
it is limited to potential

sure

in

even

our

ulation will be 174 million by 1960

of

indicated,

tively

of

the

comparable

I

in

form

is
in

account

our

1930's

three

abbreviated

view of future households.

marriages

increase

this

a measure

major factors involved

in

study¬

rate

Hence,

ures

by

only

any

largest.

by

These fig¬
not guesses; they are
extensive analysis of the

million

upon

the

any

households

million

58V2

will

for

largest for

may

situation, and I want to show you

very op¬

directly,

really

Perhaps Chart 11 will illustrate
this
third
point a
little more
clearly. It shows an age distribu¬

situa¬

span

feel

third factor
of the inroads
that are being made on the unsold
market for housing.
You can see
that as the percentage of the pop¬
ulation heading up households in¬
creases, the unsold market among
existing family heads decreases.
is

tion of males and females in 1950.

Fur¬
girls

I

age

As

We

Not

numerical

males reaching

a

future

I think you

•—as

of

around the age of 18.

years

In

majority

each

at

this prospect is not too bright.
have also examined some of

be attained in the future. As
to give you some idea of what the
you can see from
Chart 10, the
trend
of
future
marriages
is ratio of
population to households
likely to be. I do not mean to( has declined continuously for
imply that all girls marry by age many years and we see no reason
18, but it may interest you, as it for any change in this trend. Our
did me, to learn that about 92%
view is that we shall have 50J/2
of all

households

While you may not recog¬

households, and we have seen that

holds and

also show you

I

Up to this point we have con¬
the possible inroads that
the real estate agent can make on
the
existing
unsold market for
sidered

tion from the viewpoint of house¬

shrinking.
But

Households

Future

of course,

ily of the extension of human life.

where

the net annual increase in married

fact about this chart is,
the convergence of the

striking

point

turning

a

females

and

males

of

heading
group:

nize

calendar

the

in

take into

must

we

for

or

the

Demand for Housing
shows

group

Future changes in the per¬

(3)

centages

scale

has

already been born, it is possible to

fairly precise projections by
applying known mortality rates.

Factors Affecting
lower

this

Since

Thursday, February 3, 19

Mil
FEMALES

MALES

DUE 10 INCREASED PROPORTIONS
HEADING HOUSEHOLD
TOTAL

TOTAL

POPULATION

POPULATION

Wives of

Heads of

Heods

Households

,<

'AAA>//#, ?'/ '

r.rv-:;

/:x/%&:•••••■

Heads

j; fy-

x

"

■■ ■

■

'

DUE TO POPULATION INCREAS

W;

Age

l) 0

0

15 25

15

25

AND CHANGE

75

50

N AGE DISTRIBUTION

/Ayfr-,':?

A A AAA

1930-40

Joins Merrill Lynch

Chicago Analysts to Hear
CHICAGO,

111.

—

Robert

L.

Murray, President of the Hooker
Electrochemical
the

address

the
of

Investment

Chicago

Georgian

Company,
will
meeting of
Analysts Society

luncheon

on

Room

Feb.
at

10

in

Carson

the

Feb.

and

Shayne With H. Hentz
(Special

The Financial Chronicle)

FRESNO, Calif.—Jolfn C. Hammell, Jr., has joined the staff of
Merrill

Beane,

Lynch, Pierce, Fenner &
1125 Van Ness Avenue.

24

Dr.

Julius

Grodin-

Commerce of the Uni¬

versity of Pennsylvania will

Two With Bennett Co.

Chronicle)

(Special

HILLS, Calif.—Da¬
vid M.. Shayne has become affili¬
ated

with

H.

Hentz

&-

Co.,

Santa Monica Boulevard.

9680

He

was

Co.

and

Hemphill,

Noyes

Co.

SHREVEPORT, La.—W. Carter

rities business from offices at 3651
Southern Avenue.

(Special

to

The

BEVERLY
ald

(Special

to

The

Financial

Chronicle)

ANGELES, Calif.—Velma
is

now

with

California In¬

vestors, 3924 Wilshire Boulevard.




William L. Purcell Opens
(Special

to

DELRAY
liam

L.

The

Financial

BEACH,

L.

Purcell is

Fenner

—

Wil¬

engaging in

a

Financial

HOLLYWOOD,
Anson
have

and

&

W.

Co.,

(Special

Holtier

connected

6253

Financial

HILLS,

Shield

&

has

with

Hollywood

Boulevard.

(Special

Cal.—Don¬
added

to

Lynch, Pierce,
Beane,
454
North

SACRAMENTO, Calif.
Walker

1427 Pine Lane.

&" Co., 924 J Street.

now

The

Financial

with

—

Dean

Rodger & Bi

The

Financial

Chronicle)

JOLIET, 111.—Howard J. Woel
has. become associated

Rodger

&

members

Bro.,
of

with

Joliet

the

H.

Buildii

Midwest

Stc

!,'

—

With Hornblower & Wee

Chronicle)

Edward

(Special

H.

Carner has become affiliated with

Frederick
Federal

(Special

Dean Witter Adds
is

to

C.

Adams

&

Co.,

30

J. D.

Witter

to

BOSTON,
Hill

is

now

Congress

to

The

BANGOR,
Trenholm

Financial

Maine

has

Chronicle)
—

become

with

Hornblower

State

Street.

&

Leon
affilia

Weeks,

Street.

Joins Bankers Bond

Bache Adds to Staff

securities business from offices at

to

Exchange.

BOSTON, Mass.

Chronicle)

been

960-70

With H. L.

Chronicle)

Calif.—Samuel

Max

become

Bennett

Camden Drive.

Chronicle)

Fla.

The

With Frederick Adams
Merrill Lynch Adds

Henderson is engaging in a secu¬

to

1950-60

&

the staff of Merrill

With Calif. Investors

Shaw

Financial

BEVERLY

&

speak.

LOS

to The

formerly with Francis I. du Pont

W. C. Henderson Opens

sky of the Wharton School of Fi¬
nance

to

Pirie

Scott & Co.
On

(Special

1940-50

The

(Special
Financial

Mass.

—

William

with Bache

Street.

to

The

Financial

Chronicle)

Chronicle)

&

P.

Co., 21

LOUISVILLE, Ky. — Oscar
Wright is with The Bankers Be
Company,

Inc.,

Life Building.

Kentucky

Ho

Volume 181

Number 5400

The Commercial and Financial Chronicle

....

(631)

The following statistical tabulations

Indications of'Current

latest week

Business Activity

week
Latest

AMERICAN

IRON

Indicated

steel

AND

STEEL INSTITUTE:

operations

AMERICAN
Crude

PETROLEUM

oil

and

Week

(percent of capacity}.

Equivalent to—
Steel ingots and castings

(net tons)

to

runs

Gasoline

6

.Feb.

6

Week

§85.4

§2,061,000

*85.0

*2,051,000

month available.

month ended
Month

Year

▲go

Ago

81.2

1,960,000

on

74.4

1,774,000

INSTITUTE:

condensate

(bbls.

average

stills—daily
(bbls.)

(bbls.)

average

(bbls.).

6,694,700

6,689,200

6,400,950

6,292,300

Jan. 21

n,179,000

7,370,000

7,288,000

7,018,000

Jan. 21

24,464,000

24,784,000

24,767,000

23,755,000

Jan. 21

2,622,000

2,822,000

2,782,000

2,613,000

—Jan. 21

12,256,000

12,029,000

12,179,000

10,527,000

8,141,000

8,737,000

8,042,000

8,296,000

output

Residual fuel oil output (bbls.).
.Jan. 21
Stocks at refineries, bulk terminals, in transit, in pipe lines—
Finished and unfinished gasoline (bbls.) at
Jan. 21
Kerosene (bbls.) at
Jan. 21

166,285,000

162,198,000

154,922,000

27,677,000

30,521,000

23,651,000

95,870,000

100,111,000

113,817,000

91,030,000

at.

Jan. 21

49,931,000

50,566,000

51,072,000

47,247,000

.Jan. 22
freight loaded (number of cars)_.
Revenue freight received from connections (no. of cars)—Jan. 22

635,653

644,940

561,079

617,213

610,906

597,676

570,565

592,942

(bbls.)

(bbls.)

COMMERCE—Month

Revenue

CIVIL

ENGINEERING

CONSTRUCTION

—

U.

construction

,

Public construction
State

and

—

municipal

Federal
COAL

OUTPUT

Bituminous

(U.

coal

S. BUREAU

and

lignite

Pennsylvania anthracite
DEPARTMENT

S.

Public

construction

and

STORE

SYSTEM—1947-49

OI

$216,147,000

$171,054,000

Jan. 27

160,389,000

163,839,000

68,439,000

78,535,000

Jan. 27

98,092,000

93,312,000

147,708,000

92,519,000

Jan. 27

70,720,000

83,175,000

128,118,000

63,389,000

Jan. 27

27,372,000

10,137,000

19,590,000

29,130,000

Jan. 22

8,500,000

8,680,000

7,475,000

8,410,000

Jan. 22

605,000

724,000

597,000

552,000

Jan. 22

95

99

Jan. 29

UO,003,000

9,981,000

INDEX—FEDERAL RESERVE
=

100

(in

output

FAILURES

kwh.)

000

(COMMERCIAL

IRON AGE

INDUSTRIAL)

AND

—

DUN

190

86

steel

Pig iron

(per

Jan. 27

(per lb.)
ton).

gross

„

Scrap steel (per gross ton)—
METAL

(E.

PRICES

M.

&

3.

Export
Straits

refinery

tin

York)

(New

Lead

255

265

152

233

(St.

Louis)

.Jan.25

4.797c

4.797c

4.797c

Jan.25

$56.59

$56.59

$56.59

$56.59

Jan. 25

$35.50

$34.50

$32.83

$27.67

$1,373,486

$766,320

and

Repair

credit

and

30:

334,891

163,233

114,028

81,104

$29,209

$28,975

$28,760

22,014

21,952

21,907

10,296

10,340

10,404

9,398

5,324

5,587

1.631

1,637

1,645

4,689

4,651

4,271

7,195

7,023

credit-

—

HI
:^_I__I
loans

Personal loans

credit

jk

;

Service credit

ERAL

500,367

„

modernization

Noninstalment

415,995

325,801

RE¬

credit

consumer

350,325

614,395

SERIES—Esti¬

intermediate .term

of Nov.

as

-.759,091,.

,

489„034.

[

STORE

SALES—SECOND

RESERVE

DISTRICT,

BANK

OF

N.

Y.

6,853

2,407

2,377

2,183

3,042

2,892

2,931

1,746

1,754

1,739

130

182

FED¬

FEDERAL

1947-1949

—

of December:

Sales

(average monthly),

Sales

(average daily),

184

132

Sales

178

(average

105

105

101

103

129

104

113

113

113

12,702,000

♦12,711,000
♦7,252,000
♦5,459,000

13,319,000

5,419,000

unadjusted

188

unadjusted
daily), seasonally adjustedStocks, unadjusted
i
Stocks, seasonally adjusted

4.634c

EMPLOYMENT AND
OF

PAYROLLS—U.

LABOR—REVISED

S.

DEPT.

SERIES—Month

of

December:

at

at

at

(East St. Louis)

FEDERAL

Other consumer goods

All

at

(New York)

Zinc

8,855,000

QUOTATIONS):

Electrolytic copper—
Domestic rexinery at

Lead

9,425,000

COMPOSITE PRICES:

Finished

THE

Average=l<)<)—Month

&

INC

BRADSTREET,

OF

SYSTEM—REVISED
short

in millions

DEPARTMENT

INSTITUTE:

ELECTRIC

Electric

$1,715,200

OUTSTANDING—BOARD

GOVERNORS

RESERVE

EDISON

$256,600

4-

i,',..

CREDIT

Single payment loans
Charge accounts

(tons)

SALES

'

1—
.«

OF MINES):

(tons)

AVERAGE

-Ill-

municipal

-806,276

-

~

-

Federal
CONSUMER

$1,295,310

~~

construction

*»-»■-

$257,151,000

Ago

(000's

Automobile

$258,481,000

Year

Month

OF

Private construction

Instalment

Jan. 27

Prevlou*

Month
BY

$1,941,000

ENGINEERING

Total U. S. construction
Private

December

of that date:

January (000's omitted):
Total

mated

NEWS-RECORD:
.

of

are as

Latest

—

Total
•

of quotations,

cases

either for the

are

CIVIL ENGINEERING CONSTRUCTION
EN¬
GINEERING NEWS-RECORD — Month of

SERVE

ASSOCIATION OF AMERICAN RAILROADS:

,

in

or,

CASH DIVIDENDS—PUBLICLY REPORTED
U. S.
CORPORATIONS—U. S. DEPT.

165,815,000

26,118,000

.Jan. 21

oil

oil

fuel

fuel

that date,

State

at-

Distillate

Residual

Dates shown in first column

of
Jan. 21

Kerosene output (bbls.)
Distillate fuel oil output

production and other figures for the

cover

omitted)

output—dally

42 gallons each)

Crude

.Feb.

Previous

or

or

at

manufacturing (production workers)

Jan- 26
Jan. 26

29.700c

29.700c

29.700c

29.650c

Durable

32.850c

31.775c

30.575c

28.750c

Nondurable goods

Jan. 26
Jan. 26
Jan. 26

88.875c

86.250c

87.250c

84.750c

15.000c

15.000c

15.000c

13.000c

Employment Indexes (1947-49 Avge. =100)—
All manufacturing

14.800c

14.800c

14.800c

12.800c

Payroll Indexes (1947-49 Average=100)—

Jan. 26

11.500c

11.500c

11.500c

9.500c

97.68

98.84

98.25

All

goods

7,283,000

I

manufacturing

;

7,791,000

5,528,000

102.7

♦102.8

107.7

143.8

142.8

147.2

16,102,000

♦16,106,000

16,765,000

9,216,000

♦9,178,000

9,773,000

6,886,000*

♦6,9-28,000

6,992,000

$2,219,000

Estimated

number of employees in manufac¬
turing industries—

MOODY'S BOND PRICES DAILY AVERAGES:
U. S. Government Bonds

Average
Aaa

!

III

I

97.29

109.97

110.34

110.52

107.98

113.89

114.46

114.85

113.12

Feb.

111.62

112.00

112.19

110.15

Feb.

110.15

110.34

110.34

107.62

Feb.

2

^

A

Feb.

:

corporate

Feb-

104.83

104.83

105.00

101.64

Feb.

Baa

107.98

108.52

108.70

105.69

Feb.

110.70

110.88

111.07

108.16

Feb.

111.25

111.44

111.81

110.15

U. S. Government Bonds

Feb.

2.70

2.66

2.58

2.62

Average

Feb.

3.17

3.15

3.14

3.28

Feb.

2.96

2.93

2.91

3.00

Railroad
Public

Group

Utilities

Industrials

Group

Group

All

manufacturing

Durable

goods

__I

Nondurable goods
LIFE

INSURANCE

OF LIFE

PURCHASES

—

INSTITUTE

INSURANCE—Month of November

(000's omitted):

Ordinary
Industrial

BOND YIE-LD DAILY AVERAGES:

MOODY'S

corporate
A

Aaa
Aa

Feb.

3.06

3.05

3.16

A

Feb.

3.16

3.15

3.15

3.30

Baa

Feb.

3.46

3.46

3.45

3.65

Railroad

Feb.

3.28

3.25

3.24

3.41

Group

Utilities

Public

Industrials

INDEXL

PAPERBOARD

NATIONAL
Orders

Feb.

Group

Group

COMMODITY

MOODY'S

received

Production

(tons)
of

Unfilled

at end

(tons)

3.12

3.13

3.11

3.27

Feb.

3.10

3.09

3.07

3.16

Feb.

416.6

417.2

416.1

415.8

Jan.22

226,971

241,055

182,895

199,153

Jan.22

252,346

239,060

243,978

MANUFACTURERS

(DEPT.

OF

Month

of

AVERAGE

=

255,794

—Jan. 22

93

93

90

94

Jan. 22

360,787

388,392

292,891

342,885

of period

100

Jan. 28

106.75

106.47

106.78

107.35

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODD-

AND

DEALERS

LOT

EXCHANGE

—

SPECIALISTS

ON

N.

Y.

Dollar value

Jan.15

Odd-lot purchases by

1,772,913

$86,516,910

1,946,677

1,173,065

764,041

$99,201,069

$58,180,965

$34,789,631

dealers (customers' sales)-

Number of shares—Total sales

1,474,801

2,163,641

1,283,826

708,567

short

sales

.Jan. 15

6,021

9,421

8,040

8,143

Customers' other

sales

Jan. 15

1,468,780

2,154,220

1,275,786

70,424

.Jan. 15

$68,402,918

$106,547,091

$58,223,698

$29,045,435

Jan. 15

368,980

700,450

448,729

208,970

Customers'

Dollar

value

dealers—

Round-lot sales by

Number of shares—Total sales-

Sales

As

of Dec. 31

(00's omitted)

Other

Jan. 15

sales

368*980

7~00~450

448,729

208,970

Round-lot purchases by dealers—
of

Number

shares

EXCHANGE

SALES

ON THE N. Y.

632,740

487,680

346,039

OF

MEMBERS

Total sales

TRANSACTIONS

Total

of

FOR

ACCOUNT

OF

purchases
sales

purchases

Distributing

industries

:

87.0

53.0

•52.9

industries

52.4

26.3

26.1

25.0

Government
Less

.«

employee

contributions

surance

Other

social

34.3

♦34.2

33.5

4.7

4.6

in¬

,

labor

income

Proprietors and rental
Total

for

income

interest income and dividends

transfer payments

nonagricultural income

4.0

6.6

6.6

6.6

47.4

47.2

48.8

24.5

24.5

23.7

16.4

•16.5

13.9

273.8

•272.3

271.3

RECEIVED

FARMERS

BY

U.

—

S.

DEPT.

OF

—

239

244

249

INDEX

AGRICUL¬
15:

241

244

Food

grain

239

239

Feed

grain and hay

202

199

430

438

276

281

NEW SERIES
100):

—

U.

S.

DEPT.

Jan.

3,355,750

2,319,510

2,216,840

708,790

Jan.

350,620

348,440

397,520

150,240

Jan.

2,844,230

2,049,730

1,807,250

808,430

Jan.

3,194,850

2,398,170

2,204,770

958,670

Jan.

868,160

543,970

620,540

201,770

Jan.

28,820

32,300

40,600

13,200

Jan.

860,000

562,320

568,760

262,730

Jan.

888,820

594,620

609,360

275,930

914,792

729,603

743,238

299,245

74,730

100,200

146,000

32,000

—Jan.

977,270

862,413

755,057

378,694

—Jan.

1,052,000

962,613

901,057

410,694

5,138,702

3,593,083

3,580,618

1,209,805

Jan.

454,170

480,940

584,120

195,440

Jan.

4,681,500

3,474,463

3,131,067

1,449,854

Jan.

5,135,670

3,955,403

3,715,187

1,645,294

OF

Meat

animals

Dairy

products

Poultry
SELECTED

products

'.

eggs

INCOME

RYS.. (Interstate

ITEMS

OF

Commerce

Jan. 25

110.2

Jan. 25

93.0
103.7

Jan.25

86.7

Jan. 25

115.2

110.1

1

109.6

110.9

92.6

91.8

98.9

104.0

103.3

105.5

87.7

84.3

94.9

115.1

114.8

114.5

([Includes 726,000 barrels of foreign crude runs.
§Based on new annual capacity of 125,828,310 tons
of Jan. 1, 1955, as against Jan. 1, 1954 basis of 124.330,410 tons.
fAll-time new high record.
tNuniber of orders not reported since introduction of Monthly Investment Plan.

as

U.

S.

CLASS

234

229
195

-

433
-

269

207

206

205

216

237

218

279

277

263

237

243

263

257

266

267

264

266

288

156

159

224

$90,875,200

$80,204,308

$107,331,350

I

Commission)—

Month of October:
Net railway operating income
Other income
Total

._

income

Income

Income

deductions from income

available

after

fixed

for

fixed

charges

23,176,942

16,587,549

21,296,242

114,052,142

96,791,857

3,809,051

3,842,322

128,627,592
4,168,715

92,949,535

124,458,877

110,243,091
78,239,494

charges

Other deductions

2,837,345
75,402,149

Net income

(way & structure & equipment)

Federal income taxes-

—

Jan. 25




crops

Livestock and

Depreciation

foods-

commodities other than farm and foods.

crops

Oil-bearing

Miscellaneous

products-

Meats

>'

Fruit

Truck

44,241,010

61,275,664
„

90,617,234

2,946,986

2,938,671

58,328,678
43,730,891

87,678,563
42,682,178

28,062,270

18,528,551

57,178,847

29,818,707

23,188,644

3,511,651

17,732,463
2,510,355

3.44

2.93

3.68

Exports

$1,219,000

♦$1,263,400

$1,247,00(

Imports

847,000

•763,173

848,70'

Dividend

!

products
—

Cotton

=

•Revised figure'.

All farm

Tobacco

Jan.

Commodity Group—
All commodities

All

197.9

♦82.9

Crops

sales

Processed

•$28.72

*196.1

83.8

7,244,950

Total sales

Farm

•$28.63

197.4

19,260,240

Jan.

purchases

(1947-49

producing industries

19,305,880

Short sales

PRICES,

$28.76

Month

—

income

24,075,350

—

sales

—

$30,807,000

Jan-

Total round-lot transactions for account of members—

LABOR

$30,500,000

321,180

—

Total sales

WHOLESALE

$30,504,000
STATES

6,923,770

transactions initiated off the floor—

Other

24,256

796,230

Total purchases
Short sales

Total

♦23,337

18,464,010

sales

Other

24,596

658,620

Total sales
Other

$46,909

18,647,260

Other transactions initiated on the floor—

Other

♦$43,841

616,950

specialists in stocks In which registered-

Short sales

19,934

$43,811

23,458,400

MEM¬

Total sales

Total

$26,975

♦19,471

JanJan-

Short sales

Other

UNITED

Wage and salary, receipts, total
Commodity

NUMBER

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions

♦$24,370

19,421

Unadjusted—

sales

MOUND-LOT

THE

IN

TURE— 1910-14=100—As Of Dec.

sales

Other

$24,390

(in billions):

personal

PRICES

STOCK

(SHARES):

Total Round-lot sales—
Short

$3,038,000

316,610

AND ROUND-LOT STOCK TRANSACTIONS

ACCOUNT

FOR

November

Total
.Jan. 15

TOTAL ROUND-LOT STOCK

PERSONAL INCOME

Personal

Jan.15

Short sales

$3,072,000

MONEY IN CIRCULATION—TREASURY DEPT.

Service
Jan. 15

523,000

$10,27T,000
SALES

Durables

of

Jan.15

559,000

400,000

dollars):

Nondurables

Total

purchases)t—

Number of shares

$1,956,000

598,000

SERIES—

of

(DEPARTMENT OF COMMERCE)

STOCK

SECURITIES EXCHANGE COMMISSION:

Odd-lot sales by dealers (customers'

AND

NEW

(millions

$2,074,000

563,000

7,489,000

Inventories—

OIL, PAINT AND DRUG REPORTER PRICE INDEX—
1949

INVENTORIES

COMMERCE)

November

Total

activity

orders

3.08

Total

ASSOCIATION:

(tons)

Percentage

35

stock

common

On

preferred stock

Ratio

of

UNITED

—

appropriations:

On

income

STATES

to

fixed

charges

EXPORTS

AND

6,723,082

IMPORTS

BUREAU OF CENSUS—Month of November

(000*s omitted):

The Commercial and Financial Chronicle...
36

13

"VContinued from page

President, who has had charge of

tions since

Foreign Department, will be
the head of Division F, the Cor¬

ditor in 1946.

the

of

capital stock of the bank,
to a syndicate headed

the

sold

were

by Herman W. Becker, Chairman
of
the
Board,
and Harold
R.
of

price?
The shares

bank President, at a

Clark,

$38.50

■carry

share.
value of $10.

per

par

a

sale

The

directed

was

Su¬

by

Division.

meeting of stockholders. With City
since

Hahn

Mr.

1935,

University of Wisconsin School
of
Banking. Glenn M. Forgan,
Vice-President in Division I, will

in

1946, elected a director in 1947
and President in April 1954.
The

to the leadership of that
division of the bank dealing with
move

at

FVanklin

failed

Trust

certificates

the

fcad done until
holders

cate

force

other

as

a

action

court

a

liquidation

standing

of certifi¬

group

won

retire
banks

to

out¬

the

of

«

President

The

Farris have been elected Directors

tional

Palisades

of

Victor

and

Trust

Company

of

Cnglewood, N. J. Mr. Neri is Pres¬
ident

of

A.

Neri, Inc., Hoboken,
Mr. Farris is President
^Of Farris Engineering Corporation
Ff. J., and

of Palisades Park, N. J.
£

*

*

Election of S. L. de Vausney and
Harold

L.

Managers of The Montclair Sav¬
ings Bank of Montclair, N. J., was
announced

Jan. 19 by T.

Philip
Reitinger, President of the bank.
Mr. Ryan is Vice-President of New
Jersey Bell Telephone Co. He has
been connected with the Bell Sys¬
tem since 1920.
Mr. Ryan has
taken part in many local civic ac¬
on

tivities.
Stewart L. de Vausney

is Vice-

President
and
Secretary of the
iBank of New York in New York
as¬

sociated since 1932.

of

$1,000,000 was absorbed

Dec.

stock

in

Dec.

by

the

Rank

of

common

$200,000,

was

liquidation

voluntary

10, having been absorbed
Peoples

First

Trust Company

&

burgh,

with

Pa.,

placed
on

*

First

*

Co.

Trust

*
Erwin
of

and

Trust

phia,

Apollo.

*
joined

Weber

Tradesmens

of

*

Land

the

Title

staff
Bank

Company of Philadel¬

Feb. 1 as Assistant VicePresident in the foreign depart¬
on

ment.

An

announcement

of

his

proposed connection

was made on
Jan. 17 by James M. Large, Presi¬
dent. Mr. Weber had been asso¬

ciated

with

the

International

Banking Division of the Irving
Trust Company in New York for
many

years.

charge
trade

the

of

He

that

had

been

bank's

information

coordination

service

of the

in

foreign
and

develop¬

ment,

and
furtherance
of
the
bank's foreign business from do¬
mestic sources. Mr. Large pointed
out that

"Mr. Weber has traveled

Dreyer,

Foreign

in

1947-1948.

the top

as

addition

these

to

appoint¬

Locke, Jr. President of the Union
Tank

new

Robert

directors,
re-electing 19 pres¬

ment),

President

of

the

bank.

Car

Company,

as

a

member of the board of

in addition to
ent

the

of

members

board.

In

S.

Swain

Depart¬

(Trust

George B. Wendt (Bond
Department) and LeRoy F. Winterhalter (Government Bond De¬

Assistant

Vice-Presi¬

elected

Vice-Presi¬

keeping with the bank's policy of
of
board
members,
the

partment),

retirement

of

dents.

E.

Philip M. Hiss
(Bond Depart¬
ment), Milton C. Haase (Division

Swift

H.

announced

was

dents

and

Richard

Mr.

as

Swift,

directors of the bank.

Chairman

Board

of

Swift & Co., had been a member
of the Harris Bank board since
1919 and

the senior

was

member

Locke

of

the

The

New

Brandriff

stock

outstanding.
on

secu¬

The

*

Federal

Louis

*

.

Reserve

announced

the German

Bank

of

with an average rate
of return
for the year of 4.10%. Mr. Reyn¬

Jan.

18

olds'

on

cated

member

or an

of Jasper, Ind., became a

of the Federal Reserve System on

member bank's

that day. The new

officers

Louis

are:

J.

Cashier.
*

William

President

♦

*

C.

following
ailment

J&n. 12,
recurrence of a throat

a

was

died

a

was

the Sixteenth

British-West Africa
He
served
in

and

Lancers

he

Mr. Col¬
native of Ireland, and

few years ago.

former Captain in

Frontier

on

which

with
a

totaled

Force.

been

Bank in

National

First

For

since 1938.

Vice-President of

a

St. Louis

number of years

a

prior to that he was an officer of
the old First National Company,

associated

become

having

with

organization in 1922. From
1938 until 1952, Mr. Collins rep¬
resented
First National Bank's

that

indi¬

Dec.

31,

of

$3,700,Capital funds

$4,513,400.

stock

has

were
on

excess

year ago.

*

A

#

*

dividend

brought about

of

$300,000

increase in

an

the

capital of the First National
Bank
of
Florence, Ala., from
$300,000 to $600,000.
The new
capital became effective on Dec.

23, 1954.
*

#

%

An

increase of $1,000,000 in the
surplus of the surplus account of
the First National Bank of Shreve-

port,

La.,

authorized

by the di¬
has brought the
$6,000,000, and
raised the combined capital and
surplus to $8,000,000.
rectors

Jan. 12,

on

surplus

to

up

*

Africa, India and the Near East
before and during World War I.
He had

over a

First National Bank

of

in St. Louis, Mo.,

stricken

Vice-

67,

Collins,

000

deposits
$51,864,312

as

increase in

Eckstein,

President; P. L. Krodel, VicePresident; O. Loe Beckman, Cash¬
ier, Secretary and Trust Officer;
Herbert
S.
Grabeman, Assistant
Cashier; Andrew A. Knies Assist¬
ant

report

American Bank

James

*

H.

Vice-President
National

*

Kepper,
of

Executive

the

Hibernia

Bank,

of New Orleans*
La. was honored by his fellow
officers and bank directors at a
dinner on January 4 upon the oc¬
casion of his

in

years

retirement, after 4S
banking profession.

the

At the dinner Mr. & Mrs. Kepper

were presented with two
Georgian
Bank Department silver candelabras and a Georgian
the Texas and Louisiana terri¬ tureen. In making the presenta¬

tories.
*

t.

*

Vice-

President of the Bank of St. Louis,

Louis,

and

Mo.

tion, Wallace M. Davis, President
the Hibernia National Bank,
that Mr. Kepper's "reward
of such long service is found in
the
splendid
record
which
he-

of

F. Carpenter,

Verner

Mr.

former

said

Assistant Vice-Presidents. Richard
B.

Deputy Commissioner in the State achieved as a banker and in theDepartment of Finance, Jefferson high regard in which he is held
all
of
his
associates
and
City, died on Jan. 19 at the age by

in
War

returned

to

Keck,

ier,

were

Assistant Auditor, and
English, Assistant Cash¬
elected Assistant Comp¬

The

annual

meeting of share¬
holders took place on Jan. 11, and
by approval of the stockholders
membership of the Board of Di¬

Chase

rectors

Vice-President and mid-

23.

representative. He later
special representative

was

All

were

as

increased from

directors

re-elected.

elected

of the Secretary of State with the
rank of Ambassador to direct and

a

friends." Mr. Davis also said: "The-

of 58.

trollers.

New York.
II he was

as

in

served

of

Marion C.

of the War Production Board

as

share

business

and

western

value

He advised that interest

National

Executive Assistant to the Chair¬

Bank

Wilkin¬

B.

earnings were
history of the bank at $348,000, or
$3.48 per share on each $10 par

1954 amounted to $451,000, or ap¬
proximately 33% of total income,

*

E.

Officers were elected

net

his

1949.

man

1947

Charles

Lucian

and

Trust

son,

Assistant

elected

the

$620,000, and that loan income for

in

jDivision), Assistant

were

Mr.

Reynolds
operating
the highest in the

that

and

Seriol

Loans

Assistant.

indicated

Chase

since

York, serving that

fices, as well
During World

1946.

in

1945, to the position of Adminis¬

Auditors

Correspondent

Vice-Presidents.

had

bank,

and

Bergquist

or¬

St.

started

with

career

of

director

a

He be¬

Auditor

Bank

C), Rudolph E. Palluck and Rob¬
P. Keeth
(Intermediate and

Cashiers

length of service.
Pritchard, for many years a
as

Alden

P.

ert

of the board in

officer

were

the

at

Comptrollers and of the National

lins

retiring

that

meeting the official
re-elected, with the ap¬
pointment of Mrs. Anne Walker,
was

rities amounted to approximately

a

The stockholders elected Edwin A.

stated

ganization

Louis

will

Department,

office and

member of the St.

Vice-President

by being promoted
positions of higher title: Verne
L. Bartling (Division F), James A.
Bourke (Division C), George F.
Sisler
(Business
Development),

12,

bank in its Paris and London of¬

Apollo

a

is

to

Jan.

on

by Mark A. Brown,

Bank

A.

Assistant

their abilities

meeting

over

Apollo, Pa., with

common capital
$50,000 was placed in
voluntary liquidation as of Dec.
18, having been absorbed by the

the

In
Trust

stock

of

Association
H.

succeed Mr. Prochnow

*

of Harris

presided

Mr.

cf

came

their annual

senior

Bank

First National since 1923.

He

and Savings Bank of Chicago, held

Mr.

National

such

to

reported

He

27.

trative

ments, the following officers re¬
ceived
further
recognition
of

of Pitts¬

#

itself

relate
as

Jan.

zations, and is the author of mag¬
azine articles on bank accounting
and auditoring procedures.
Mr. Turpin, newly elected Au¬
ditor of the bank, has been with

a

officer in this section of the bank.

*

Stockholders

served
si:

of

16, page 2472.

National

Pa.

The

issue

our

will

this

of

*

The First National Bank at Mc-

capital

in

become

contracting, build¬
ing materials, furniture companies
and accountants. Mr. Crossley has
also been active in banking af¬
fairs, particularly in Robert Mor¬
ris Associates serving as President

of

appeared

Comptrol¬

held

the re-election of the directors to

who has been with the bank since

St.

Leslie

matter

and

ing

lers, the Missouri Bankers Asso¬
ciation and other banking organi¬

that

by the Chicago National Bank of
A previous item on the

Bank Auditors

of

Vice-President in Di¬
vision C, will be the top officer
of
a
newly created Division J

Chicago.

Pritchard

Rocks,

in

Comptroller of the Currency. The
bank which had a common capital
stock

Harold

Kees

111.

staff

General Vice-President. Robert J.

businesses

tenure

City with which he has been
*

Chicago,

of

Bank

voluntary liquidation as of Jan. 14
has
been
made
known
by the

the Board of

Ryan to

placing of the Liberty Na¬

to

1947

in

in Palm Beach, Fla.,

active in the National Association

Chapter,

I

tional Bank

at the annual shareholders meet¬

Association of Cost Accountants.

which

W.

Neri

«

♦

*

Vice-President and

as

Wiley R. Reynolds, Jr. was re¬
elected President of the First Na¬

Comptroller he will assume the
duties of building project coord¬
inator in charge of First National's
building expansion and moderni¬
zation program.
Mr. Sudekum is

Vice-President, who
relinquished active leadership of

Crossley,

All other ofifcers were

duties

new

In addition to his

his time to this field as has Hugo

Division

Vice-

Assistant

elected

was

*

%

M.

In the

1913, was elected Au¬

dents and will continue to devote

A. Anderson,

Department, William S. Mil-

President.

succeeds, becomes one
Vice-Presi¬

of the bank's General

Messrs. Lewis and

and

Guy

whom

Kiddoo, Vice-President

Mr. Forgan

Vice-

Assistant

an

Webb Assistant Secretaries,
Trust
ler

C.

related industries.

and

ness

re-elected.

certificates.

James

been

merly

up

companies engaged in the oil busi¬

Mr. Bare had for¬

ant Treasurer.
years,

Reserve

the

their meeting on the 18th, elected
perior Court Judg;e John GrimArthur
B.
Bare
Vice-President,
shaw, Jr. to liquidate Beneficial
Paul F. Lewis and Willard I. Webb,
Interest Certificates issued 23
years ago yesterday to some 3,500 III, Assistant Vice-Presidents, Ed¬
ward B. Davies, Assistant Secre¬
depositors in lieu of 80% of their
deposits to save the bank after tary and Duane Donovan, Assist¬

the 1929 crash.
Over
the
intervening

Sec¬

is

Advisory

Federal

activities in behalf of

and present

was

named Treasurer of that company

directors of the trust company

Federal

the

System and is widely known as a
result of his helping to organize

company

Auto

Prochnow

the

of

Council

Webb, Jr., President of the trust
following the
annual

Mr.

of

retary

Bankers

and

Bank

respondent

Kews About Banks and Bankers

to

Thursday, February 3, 1955

(632)

were

holding

20

to

office

directors

New

William

Wood

Carpenter began his bank¬ year 1954, marked for Mr. Kepper
ing career with the Community the completion of 45 years in theBank
of
Smithton
where
he banking profession and the year
worked
from
1919 to
1926 as 1955 ushers in for him the be¬
Cashier. From 1926 to 1941 he was ginning of a leisured life of re¬
Assistant Cashier of the Moniteau tirement which he has so richljr
National Bank, California, Mis¬ earned." With the exception of a>
Mr.

souri. He

in

Louis

joined the Bank of St.
1945

and

in

few years of his youth, Mr. Kep¬

January, per's entire

business life has been

President, Union Stock
1948, after resigning from
the spent in banking. His first jobYard & Transit Co.; Chesser M.
co-ordinate economic and techni¬
Bank, he ran for the office of was that of a messenger in the
Campbell, Vice-President, "The
State Treasurer. Defeated, he re¬ Algiers Savings Bank in 1903.
cal assistance in the Near East.
A
Chicago Tdibune"; Marshall Field,
turned to the Bank in November, year later, he entered the employ
Kenneth V. Zwiener was elected
Jr., Director, Field Enterprises,
1948. He was a Vice-President in of the Southern Pacific Railroad
President
of Harris Trust
and Inc.
As a result of the declara¬
the Correspondent Banking
De¬ and two years later became con¬
Savings Bank at the meeting of tion of a stock dividend in De¬
nected
with
the
New
Orleans:
partment.
the board of directors held im¬ cember 1954 of
*
*
*
$10 million, the
Northeastern
RR.
In
1909 .Mr.
mediately following the bank an¬ capital and surplus of The First
Joseph A. Trochta was elected Kepper commenced work as anual stockholders' meeting.
Mr. National Bank of Chicago aggre¬
Assistant Vice-President of
the general clerk for the Hibernia
Zwiener succeeds Mark A. Brown,
gates $200 million equally divided
Bauk of St. Louis of St. Lou:s, Bank & Trust Company. While
who retired in accordance with
as to capital and surplus.
Mo., by the bank's Board of Di¬ with that institution he held the
the Harris Bank's pension plan.
■!:
#
rectors at their annual meeting on position
of discount teller, As¬
Mr. Brown joined the bank in
Effective Dec. 16, the capital of Jan.
Cashier,
21, it was announced Jan. 25 sistant
Cashier,
Vice1928 as Vice-President, became a
the City National Bank in Dixon,
President
and
director
of
the
by Arthur Blumeyer, President.
director in 1942 and has served
111., was increased from $100,000 Mr. Trochta, who joined the or¬ bank. With the organization of
as President since 1950.
Mr.
to $200,000 by a stock dividend of
The Hibernia National Bank
ii»
ganization in March, 1946, has
Zwiener joined Harris Trust in
been Assistant Cashier since Jan¬ 1933, Mr. Kepoer was elected Ex¬
its
San
Francisco
office
after $100,000.
Prince,

.

V

*

extensively abroad and has an
excellent background of practical
experience
in
foreign
banking
problems."
*

•

•

The Doylestown National Bank
and
Trust Company of

Doyles¬

town, Pa., has increased its capital
from $125,000 to $250,000, the new
capital Resulting from a stock div¬
idend of $125,000, having become
effective Dec. 30.
*

♦

Bank Item 17
Election

of

of

17

Toledo,

Ohio,

nounced on Jan. 18

came

a

in

1946

and

17

D.

was

an¬

of Directors

National

*

meeting of The First
of Chicago held

Bank

Jan. 11 Edward E.

tBrown, Chair¬

the following
changes in the official*organiza¬
man,

announced

by Willard I. tion.- Herbert V. Prochnow, Vice-




*

uary,

served
the

to

$200,000 has

increase the

capital of

Security National Bank of
City, Iowa, from $800,000
$1 million.
The new capital

Sioux
to

became effective Dec. 16.
*

Fred

J.

*

*

Sudekum,

Auditor

First National Bank in
*

At the conclusion of the Board

Hahn,

*

A stock dividend of

be¬

member of the board last
*

President of City Auto
Stamping
Company, to the board of directors
of the Ohio Citizens Trust Com¬
pany

Vice-President

January.

•

William

*

graduating from the University of
California. Moving to Chicago in
1932, he served in various de¬
partments before joining the
banking department.
He was
elected Assistant Cashier in 1939,
Assistant Vice-President in 1943,

1952. In addition to his new

title, he will

retain the title of

Assistant Cashier.

He is

ber of the Board of

a

St. Louis,

Bank

of

finance offices extending

ance

and

Mo., has been elected Vice-Presi¬

from

dent

and

Quinc.y, 111. to New Orleans
operating in nine states.

bank's

and

Comptroller

Board

of

by

the

Directors

and

*

Paul P. Turpin, Assistant

*

*

result of the sale of $50,000

of

of Auditor of the bank.

Third National Bank of Ashland,

Mr. Sude¬

a

new

stock, the capital of the

kum, who has been with First Na¬

Ky., was enlarged on Dec. 28

tional and its forerunner institu¬

$200,000 to $250,000.

from

of

*

Directors

the

as

well as

Board

of

*

of

#

the First

National

Bank in Dallas, Texas, made five

advancements in the officer staff
at their

meeting following that of

the stockholders

Worthington

on

was

Jan. 11. W. F.

moved up from

Vice-President and Trust Officer
Vice-President and Senior

to

Trust

Auditor,
has been advanced to the position

As

member

Directors.

Bank¬

St. Louis is the
major subsidiary of General Con¬
tract Corporation, a holding com¬
of pany for a group of banks, insur¬
ing.

a

Governors of

American Institute of

the

mem¬

ecutive Vice-President

was

Officer.

advanced

Cashier
dent.

to

Roy

John

from

Assistant

H.

Max

Gray

Assistant
Vice-Presi¬

Hooten,

Carl

Walker, and Louis R. Wilson
elected Assistant Cashiers.

L.

were

,

Volume 181

Number 5400...The Commercial and Financial Chronicle

* INDICATES

Securities Now in
Amalgamated Uranium Corp., Salt Lake City, Utah
Sept. 1 (letter of notification) 2,500,000 shares of com¬
stock

mon

(par three cents). Price—10 cents per share.
Proceeds—For exploration and development costs. Office
—218 Atlas
Bldg., Salt Lake City, Utah. Underwriter—
Ned J. Bowman Co., the same
city.
Amcrete Corp.,
Briarcliff, N. Y.
Dec. 6 (letter of
notification) 7,500 shares of 6% par¬
ticipating preferred stock. Price
At par
($10 per
6hare). Proceeds—For working capital. Business—Dis¬

Registration

Anticline Uranium,

resses

made of steel reinforced dense

Un¬

concrete, etc.

ceeds—For exploration and
fice—995 Market St., San

assembly of homes. Office—10509

South Main

St., Houston, Tex. Underwriters — Hunter
Securities Corp., New York, and Continental Securities
Corp., Houston, Tex.

com¬

stock (par five cents). Price—20 cents
per share.
Proceeds—For uranium and oil activities. Office—Judge
Bldg., Salt Lake City, Utah. Underwriter—Northern Se¬
mon

curities, Inc., Seattle, Wash.
American
Jan.

Service

Francisco, Calif.

Publishing Co.,

Arctic

Oct.

28

Uranium

(Regulation

Bldg.,

Winnipeg,

Gaetano

ments

in

additional invest¬

subsidiaries.

Underwriters—W. C. Langley &
The First Boston
Corp., both of New York.

Co. and

American Water Works
Co., Inc.
Jan. 13 filed
540,894 shares of common
be offered

for

the rate of

one

Feb.

8;

stock

(par $5) to

subscription by

common stockholders at
share for each five shares held about
expire Feb. 23 (Northeastern Water

to

shares

l,5uu,000

of

common

Manitoba, Canada. Underwriter—De
Corp., New York.

Securities

Golconda Metals, Inc.
(letter of notification) 292,000 shares of common
stock (par 10 cents). Price—$1
per share. Proceeds—For
general corporate purposes.
Office — Kingman, Ariz.
Underwriter—Baruch Brothers & Co., Inc., New York.
•

Audio & Video Products

Jan. 17

Corp.

(2/7)

Co., owner of 1,625,000 of the 2,704,472
shares) will subscribe for 325,000 of the

ITEMS

REVISED

outstanding
new

shares.

Price—To be supplied by amendment.
Proceeds—To re¬
pay bank loans and for additional investments in sub¬
sidiaries. Underwriters—W. C.
Langley & Co. and The
First Boston Corp., both of New York.

Big Bend Uranium Co., Salt Lake City, Utah
Aug. 6 (letter of notification) 7,000,000 shares of common
stock.

Price—At par

—For

mining

(three cents per share). Proceeds
Office—510 Newhouse Building^.
Utah.
Underwriter — Call-Smoot Co.,

expenses.

Salt

Lake City,
Phillips Building,

same

city.

Big Indian Uranium Corp., Provo, Utah
July 15 (letter of notification) 500,000 shares of common
stock (par 10 cents). Price—25 cents per share. Proceed*
—For mining operations. Address—Box 77, Provo, Utah.
Underwriter—Weber Investment Co., 242 N. University
Ave., Provo, Utah.
Bikini Uranium

Corp., Denver, Colo.
(letter of notification) 3,000,000 shares of com¬
mon
stock (par one cent).
Price—10 cents per share..
Proceeds—For exploration and development costs.
Of¬
Oct.

fice

15

National

First

705

—

Bank

Colo.

Rldg.,uDenver,

Underwriter—I. J. Schenin Co., New York.

common

payable, to maufacture new tape
recording machine, and for working capital. Office—730
Fifth Ave., New
York, N. Y. Underwriter
Townsend
Graff & Co., same city.
Offering—Expected in the next
—

Canyon Uranium, Inc.
(letter of notification) 6,000,000 shares of com¬
(par one cent). Price—Five cents per share.
Proceeds—For mining activities.
Offices — 1003 Con¬
tinental Bank Bldg., Salt Lake City, Utah, and 618 Rood
Ave., Grand Junction, Colo. Underwriter — James E.
Reed Co., Reno, Nev.
Nov. 29

stock

mon

Automatic

Canteen

Co.

of

America

Dec. 28 filed 97,481 shares of common stock

(par $5) be¬
ing offered for subscription by stockholders of record
27, 1955 on the basis of one new share for each

Jan.
six

shares

$17 per

held; rights to expire on Feb. 14. Price—
share. Proceeds—Together with other
funds, to
stock

common

of

the

Rowe

Underwriter—Glore, Forgan & Co., New York.

Automatic

Remote Systems, Inc., Baltimore
Aug. 4 filed 620,000 shares of common stock (par M
cents), of which 540,000 shares are to be offered tc

public

and

80,000

shares

share.

per

to

be

issued

to

Proceeds—For

underwritei

manufacture

oi

Jay Uranium Corp., Elko, Nev.
(letter of notification) 1,000,000 shares of com¬
share. Proceeds—For ex¬
ploration and development costs. Office—402 Henderson
Oct.

15

mon

stock. Price—25 cents per

Bank

Bldg., Elko, Nev. Underwriter—Security Uranium
Service, Inc., Moab and Provo, Utah.
•

Western America Uranium Corp.
(2/11)
(letter of notification) 298,400 shares of common
stock (par 25 cents).
Price—$1 per share. Proceeds—
For exploration and development expenses.
Office—C.
British

Jan.

A.

13

Johnson

Bldg.,

Colo.
Underwriter—S. D,
Brothers, both of New York

Denver,

Fuller & Co. and Vermilyea
®

California

Tuna

San Diego, Ca5if.
sinking fund debentures
160,000 shares of common stock (par five*
Fleet,

Inc.,

Sept. 29 filed $4,000,000 of 6%

Telebet units and Teleac systems and additions to work¬

due 1966 and

ing capital. Underwriter—Mitchell Securities, Inc., Bal¬
timore, Md.

cents) to be offered in units of

• Automation Industries, Inc., Baltimore, Md.
26 (letter of notification)
9,800 shares of 6%

Jan.

ferred

stock

(par $10);

shares of

100

class

B

a $500 debenture and 20
supplied by amendment.
Proceeds—For purchase from National Marine Terminal,

shares

of

stock.

Price—To

be

Inc. of its undivided interest in 17 tuna clippers, subject
pre¬

to certain

common

pers; and
f">rr>"rate

stock

(par $10); and 10,000 shares of class A common
stock (par 10 cents). Price — At par. Proceeds — For
working capital. Address—Box 2583, Baltimore 15, Md.
Underwriter—None.

liabilities; for construction of four tuna clip¬
the balance for working capital and general
purposes.

TTnderwriter

—

Barrett

Herrirk

it Cal-Moab Uranium Corp., Madera, Calif.
21 (letter of notification) 1,000,000 shares of
stock.
Price—At par (one cent per share).

com¬

mon

February 7
Audio

&

Video

Pittston

&

Common

Co.)

ceeds—For

February 16

Corp

Graff

South

(Shields

•

,.

&

(Wednesday)

Co.)

about

Co.

and

Reynolds &

Co.)

February 17

285,000 shares

Motors

(Offering

to

(Stone

Corp

Common

stockholders—underwritten

Stanley

General

(Tuesday)

&

Co.)

approx.

by

(Bids

8

PST)

a.m.

Southeastern

Public

(Exchange

&

Co.)

February 28
Sheraton

Corp.

(Paine,

(Wednesday)

Globe

Corp

$5,625,000

Common
60,080 shares

Metallurgical Corp
s

Central

&

South
(Bids

Common
Co.)

February 10
&

&

Curtis)

$5,000,000

(Tuesday)

invited)

7

Common

600,000

shares

Common
Co.)

200.000

shares

15

shares.

The

offer

Underwriter—None.

extended.

Statement

effec¬

(Bids

to

be

to

$10,000,000

March

Preferred

invited)

16

Inc., Harrisburg, Pa.
(letter of notification) $30,000 of 4%

vertible

debentures.

Price

At

non-con¬

(in units of $50
each). Proceeds — For expansion, new equipment and
working capital. Office—58 N. 13th St., Harrisburg, Pa.
—

par

Carnotite

Development Corp.
(letter of notification) 16,000,000 shares of com¬
mon stock.
Price—At par (one cent per share). Proceeds
—For exploration and development expenses.
Office—
317 Main St., Grand Junction, Colo. Underwriter—West¬
Securities Corp., Salt Lake City, Utah.

it Carolina Power & Light Co.
cumulative serial preferred
stock (no par) and 550,000 shares of common stock (no
Feb. 2 tiled 50,000 shares of

Bonds

invited)

be

21

$6,000,000

par).

Price—To be supplied by amendment. Proceeds
sale of shares, together with other funds, for
and improvements to property.
Underwriters

—From

additions

(Wednesday)

Bishop Oil Co

Continued
Common

on

page

(Offering to stockholders—to be underwritten) 153,236 shares

$1,500,000

(Friday)

Blosser

(Straus,

&

Debentures
McDowell)

about

$1,500,000

British Western America Uranium Corp.__Common
(S.

D.

Fuller & Co. and Vermilyea

April 15

Brothers) $298,400

(Friday)

Westpan Hydrocarbon Co

February 14

(Monday)

Dallas Power & Light Co
(Bids

noon

(May

(Offering

by

company—no

(General

underwriting)

Co., Inc

Investing Corp.)

Securities

Common
Corp.)

384,861

May

10

shares

(Tuesday)

Georgia Power Co
(Bids

$300,000

11

Bonds
a.m.

EST)

$12,000,000

Class A

May 31 ( Tuesday)

$250,000

Alabama

February 15

Union

$7,000,000

Gatling Mining & Development Co., Inc._Preferred
Stewart Uranium Drilling

be

Debentures

EST)

(Tuesday)

Power

Co

(Bids

11

Bonds
a.m.

EST)

$15,000,000

New York.

Chesapeake & Colorado Uranium Corp.__Common
(Peter

Morgan

&

Co.)

11

a.m.

EST)




November

$750,000

Kansas City Power & Li<*M Co
(Bids

is

ern

(Tuesday)

Trav-Ler Radio Corp

February 11

Calvan

Oct. 26

(Monday)

Kansas Gas & Electric Co

(Thursday)
Co.)

17

Underwriter—None.

Corp

Kansas Gas & Electric Co

(Bids

Common

Fuller

be

to

(Courts

$540,000

General Homes, Inc
D.

West

March

420,623 shares.

Phaostron Co.

(S.

1

March
Common

California

each

tive Jan. 21.

Jan.

Debentures

Atlantic Steel Co.__

$1,475,000

(Offering to stockholders—no underwriting)

for

contingent to acceptance by not less than 51% of the
outstanding Calvan stock and will expire on Feb. 28,

shares

Common

Co.)

Lehman Corp.

(First

Common
70,000

(Monday)

Jackson

March

Common

Pierce, Fenner & Beane)

(McDonald

$17,000,000

of America

Webber,

Preferred

(Offering to stockholders—underwritten by W. C.
Langley & Co. and The First Boston Corp.) 540,894 shares

Cement

shares

ferred
Bonds

EST)

Petrofina, Ltd.
1
1,751,428 shares of non-cumulative par¬
ticipating preferred stock (par $18—Canadian) being
offered in exchange for shares of capital stock of Calvan
Consolidated Oil & Gas Co., Ltd. at the rate of six pre¬
filed

20

it Capital Bakers,

American Water Works
Co., Inc

(Merrill Lynch,

(Wednesday)

Co

a.m.

(Granbery, Marache & Co.)

Common
28,000 shares

Langley & Co. and The First Boston Corp.)

Consolidated

$1,500,000

City,

Canadian

unless

Common

underwritten)

February 9

11:30

Corp.)

United States Ceramic Tile Co._

$300,000

Service Co

offer—not

(Bids

Debentures

Securities

Texas Electric Service
Bonds

American Water Works Co., Inc.__
(W. C.

•

$12,000,000

Green Mountain Uranium Corp
(Tellier

Webster

February 23

Morgan

$325,000,000

Telephone Co. of California

&

Pro¬

estimated expenses

Okla.

Dec.

(Thursday)

Central Electric & Gas Co.

February 8
General

toward

Underwriter—Petroleum Finance Corp., Oklahoma
Common

$900,000

Common

&

advance

for the
proposed additional issue of approximately $290,000 ag¬
gregate value. Office—209 South "O" St., Madera, Calif.

Georgia Natural Gas Co

$135,000

Co.

(Allen

CALENDAR

(Monday)

Products

(Townsend

ISSUE

&

Co., Inc., New York. Offering—May be effected in March
and registration statement may be amended.
>
Jan.

NEW

.

ISSUE

Blue

(letter of notification) 450,000 shares of

stock (par one cent). Price—30 cents
per share. Proceeds
—To reduce accounts

Price—$3.75

(2/9)

new

rights

"D")

Dec. 7

Corp.

preferred stock
by amendment. Pro¬

be supplied

To repay bank loans and for

—

Ltd.

purchase 262,500 shares of

American Water Works
Co., Inc. (2/9)
Jan. 13 filed 225,000 shares of cumulative
ceeds

Mines

stock (no par value). Price—20 cents per share. Proceeds
—For general corporate
purposes.
Office — 411 Childs

•

Associates, Ltd., Washington,

Price—To

PREVIOUS

Blue

Inc.

(letter of notification) 50,000 shares of class A
common stock
(par $1). Price—$5 per share. Proceeds—
For working capital and
general corporate purposes. Of¬
fice—400 Walker Bldg.,
Washington, D. C. Underwriter
—Theodore T. Ludlum &

(par $25).

Underwritei

•

ADDITIONS

SINCE

i

few days.

11

D. C.

Of¬

expenses.

Arizona

American Beauty Homes, Inc.,
Houston, Tex.
Jan. 20 (letter of
notification) 300,000 shares of common
stock (par 10
cents). Price—$1 per share. Proceeds—
For prefabrication and

of

development

—Coombs & Co., of Los Angeles, Inc., Los
Angeles, Calil.

derwriter—None.

American Duchess Uranium & Oil Co.
Dec. 9 (letter of
notification) 1,500,000 shares

Inc., San Francisco, Calif.

Oct. 28 (letter of notification)
2,970,000 shares of class A
capital stock. Price—At par (10 cents per share). Pro¬

—

tributor of prefabricated concrete wall
panels and but-

37

(633)

$16,000,000

Bonds

Southern

9

(Wednesday)

Co.
(Bids

Common
to

be

invited)

500,000

shares

Boston

Philadelphia

Pittsburgh

San Francisco
Private IVires to all

offices

Chicago

Cleveland

38

38

The Commercial and Financial Chronicle... Thursday,

(634)

Continued,
—Merrill

R.

and

jrom

Lynch,

page

if Consolidated Fenimore Iron IVIines Ltd.
24 filed 204,586 shares of common stock (par $7),
to be offered for subscription by common stockholders

37

Jan.

Pierce, Fenner & Beane, New
& Co., Charlotte, N. C.

York,

1955 at the rate of one new
Price—$2.20 per share.

Feb. 7,

of record

Dickson

S.

each five shares held.

+ Carver House, Inc. (Nev.)
18 (letter of notification) 100.000 shares of class A
common stock
(par 48 cents) and 100,000
shares of class B voting common stock (par one cent)
to be offered in units of one share of each class of stock.

geological surveys and metallurgical re¬
search, for drilling expenses and other general corporate

Proceeds—For initial expenses
building of hotel. Underwriter—None.

if Consolidated Sudbury Basin Lines, Ltd.,
Toronto, Canada
Jan. 31 filed 3,000,000 shares of common stock (no par).
Price—To be supplied by amendment.
Proceeds—For

if Cavalcade of Golf, Inc.
Jan. 26 (letter of notification) 250 units of securities,
unit consisting of $500 2% seven-year debenture,
one
share of 1% non-cumulative preferred stock (par
$500) and one share of class B common stock (no par).
Price—$1,001 per unit. Proceeds—For working capital,
etc.
Office—200 Fifth Ave., New York, N, Y.
Under¬

exploration and development of properties. Underwriter
—Stock
to
be sold
on
Toronto Stock Exchange or

Oct.

(2/17)

$1,500,000 convertible subordinated deben¬
Feb. 15, 1970. Price — At 100% of principal
For

—

construction

program.

if Central Eureka Corp., San Jose, Calif.
18 (letter of notification)
$300,000 of 5%
debentures

nominations

due

Feb,

1,

1965.

Price—At

ceeds

(de¬

Brothers

—Expected

and

on

Lazard

March

&

Co.

(jointly).

mon

chased
per

capital.

Bids

•

Jan.

18

stock.

(letter

Underwriter—Allen

par

($25

E.

1,200

shares of

share).

Beers

common

Proceeds—For

if Desert Mining Co., Albuquerque, N. Mex.
Jan. 26 (letter of notification) 700,000 shares of com¬
mon
stock
(par 25 cents).
Price—30 cents per share.
Proceeds
For
mining expenses.
Office — 210 Third

purchase of mining and washing equipment to equip
plant now under construction. Office
Clarington, Pa.
Underwriter—William T. Bowler & Co.,
Bradford, Pa.
Offering—Now being made.
—

—

Street,

Colonial Acceptance Corp.
Dec. 20 filed $2,500,000 of 6%

junior subordinated sink¬
ing fund debentures, series B, due Dec. 1, 1968, of which
$1,529,550 principal amount are offered in exchange
for $1,390,500 of debentures due 1958 on the
basis of
$550 of
Offer

debentures for each $500 of debentures held.
Feb. 21.
Price—At par and accrued in¬
Proceeds — To retire junior subordinated
new

sinking
.fund debentures which mature Dec. 1, 1958. Underwriters
—Straus, Blosser & McDowell and Fairman, Harris &
Co., Inc., both of Chicago, 111.
Colorado Plateau Uranium Co.
Dec. 1 (letter of notification)
1,900,000 shares of
stock

(par

common

—

St., Denver, Colo.
Consolidated Cement
Corp., Chicago, III. (2/9)*"
Jan. 20 filed 60,080 shares of common
stock (no par), of
which 20,000 shares are to be sold for
account of certain

—

M., Albuquerque, N.

Mex.

Underwriter

—

and

40,080

be

supplied

shares

by

for

account

amendment.

principally in connection

with

of

Devil Canyon Uranium
Nov.

8

mon

stock

Corp., Moab, Utah
3,000,000 shares of com¬
cent). Price—10 cents per share.

(letter of notification)
(par

one

exploration and development costs. Of¬
fice—21 Main St., Petersen Bldg., Maob, Utah. Under¬
writer—Melvin F. Schroeder, 501 Kittredge Bldg., Den¬
ver, Colo.
Diamond Uranium Corp., Moab, Utah
20 (letter of notification) 3,500,000 shares

con¬

mon

'

Consolidated Credit
Corp., Charlotte, N. C.
25 (letter of
notification) $100,000 of 20-year 6%
subordinate sinking fund notes and 100
Oct.

ten-year

per unit

war¬

stock to be sold
warrant. Price—$1,000

common

(each warrant is exercisable at
$10 per share.)
Proceeds —To
repay bank loan.
Office
221% West
Trade St.,
Charlotte, N. C. Underwriter—J. C. Wheat
& Co.,
Richmond, Va.
—

Consol. Edison Co. of New
York,

Inc.
April 7, 1954, filed $50,000,000 first and
refunding mort¬
gage bonds, series K, due
May 1, 1984. Proceeds—To be
applied towards cost of
redeeming $27,982,000 New York
Steam Corp first
mortgage bonds and $25,000,000 West¬
chester Lighting Co.
general mortgage bonds.
Under-

Wui

able

5~rT° be determined by competitive bidding. Prob¬
bidders; Halsey, Stuart & Co. Inc.;
Morgan, Stanley

+
twt'
First Boston Corp. Offering—Originally setMay 11, but has been postponed because of
market
conditions. No new date set.
**

1 or




•

shares of capital stock.

Price—At

($1 per share). Proceeds—For machinery and build¬
ing and working capital. Office — 407 Liberty Trust
Bldg., Philadelphia, Pa.
Underwriter—None.
par

Investment Corp., San Diego, Calif.

Electronics

filed

14

Dec.

Belle

Eula

capital stock (par $1).

2,000,000 shares of

Proceeds—For investment.

Price—$5 per share.

Uranium, Inc.

5,000,000 shares of com¬
Price—Five cents per share.
and development expenses.
Office—506 First Security Bank Bldg., Salt Lake City,
Utah.
Underwriter—Utah Securities Co., same city.
(letter of notification)

Oct.

18

mon

stock

(par one cent).

exploration

Proceeds—For

Home Loan & Discount Co.

Farm &
29

filed

320,000

shares of

class A common stock

(par 25 cents), 214,285 shares of class B common stock
(par 35 cents) and 300,000 shares of class C common
stock (par 50 cents). Price — At par. Proceeds — For

Office—Phoenix, Ariz.

working capital.

Underwriter—

None.

Credit Corp.,

Financial

New York

Jan. 29, 1954

filed 250,000 shares of 7% cumulative sink¬
ing fund preferred stock. Price—At par ($2 per share).
Preceeds
For working caiptal. Underwriter — E. J.
—

&

Co., Inc., New York.

Four States Uranium Corp.,

Aug.

16

(letter of notification)

Grand Junction, Colo.
300,000 shares of com¬
share). Proceeds—For

Price—At par ($1 per

stock.

mon

and development expenses.
Office —618
Avenue, Grand Junction, Colo.
Underwriter —
Rosenthal, 1669 Broadway, Denver, Colo.

exploratory
Rood
Joe

if Frio Frozen Foods, Inc., Anthony, Texas
(letter of notification) 20,000 shares of common
stock (no par). Price—$5 per share. Proceeds—For con¬
struction of plant and refrigeration. Address—Box 306,
Jan. 25

Underwriter—Norman D. Patterson, Jr.,

Anthony, Tex.
El Paso, Tex.

^ Frontier Uranium Co., Ogden, Utah
27 (letter of notification) 2,003,000 shares of
stock.
Price—At par (10 cents per share).

Jan.

com¬

Pro¬

mon

ceeds—For

mining operations.

Building, Ogden, Utah.

Office—First State Bank
Underwriter—Coombs & Co. of

Ogden, same city.
Gatineau Uranium Mines Ltd.

(Canada)

Aug. 10 (Regulation "D") 300,000 shares of common stock.
Price—At par ($1 per share).
Proceeds—For explora¬
tion

and

Office

development costs.

—

100 Adelaide St.

None.

(par

one

if Dolores of Florida, Inc., Memphis, Tenn.
(letter of notification) 20,000 shares of common
stock (no par).
Price—$5 per share. Office—810 Wal¬
nut St., Memphis, Tenn. Underwriter—None.
East Tennessee Water

Corp.
Dec. 20 (letter of notification) $160,000 of first mortgage
6% bonds dated Dec. 1, 1954. Price — At par (in de¬
nominations of $1,000 each). Proceeds—For purchase of
real estate, capital improvements and contingencies. Of¬
fice—306 E. Main St., Johnson City, Tenn. Underwriter
—D. T. McKee Investment Co., Box 904, Bristol, Va.
Investment Co.

Co., Salt Lake City, Utah

(letter of notification) 11,000,000 shares of capital
(par one cent). Price—Two cents per share. Pro¬
ceeds—For exploration and development of oil and ura¬
nium

Office — 414 Judge Bldg., Salt Lake
Underwriter—Utah Uranium Brokers, same

properties.

City, Utah.
city.
•

General

Homes, Inc. (2/10)
shares of common stock (par $1).
Price—$5 per share. Proceeds—For plant expansion, ne
equipment, inventory and working capital.
Office
Huntington Station, L. I., N. Y. Underwriter—S. D. Ful¬
ler & Co., New York.

Dec.

15

filed 300,000

Motors Corp.,

Detroit, Mich. (2/8)

Jan. 20 filed
to

4,385,000 shares of common stock (par $5)
be offered for subscription by common stockholdei

of record

Feb.

8 at the rate

20 shares

of

one

new

share

for eac'

held;
supplied by
penditures and
J. P. Morgan &

rights to expire on March 7. Price—T
amendment. Proceeds—For capital ex
working capital. Subscription Agents
Co. Incorporated, New York, N. Y.; Na

tional

Detroit, Detroit, Mich.; Continental Illi

be

Jan. 24

East Texas Loan &

Gem Uranium & Oil
Dec. 9

stock

General

of com¬
cent). Price—Five cents per share.
Proceeds—For mining expenses.
Office—M. I. C. Bldg.,
Moab, Utah. Underwriter—Security Uranium Service,
stock

Inc., K. O. V. O. Bldg., P. O. Box 77, Provo, Utah.

one

300,000

if Gatling Mining & Development Co., Inc. (2/14)
Jan. 28 (letter of notification)
1,200,000 shares of pre¬
ferred stock.
Price—At par (25 cents per share). Pro¬
ceeds—For drilling expenses and working capital.
Of¬
fice—79 Main St., South River, N. J.
Underwriter-

Jan.

already commenced, at Kansas plant
Underwriter—Merrill Lynch,
Pierce, Fenner & Beane,

rants to purchase 20 shares of
in units of a
$1,000 note and

filed

6

if Desert Queen Uranium Co., Salt Lake City, Utah
(letter of notification) 259,500 shares of common
stock (par two cents). Price—$1 per share. Proceeds—
for mining operations. Office—506 Judge Building, Salt
Lake City, Utah.
Underwriter — Selected Securities
Ltd., Los Vegas, Nev.

Pro¬

struction program,

New York.

Ireland

Electronics Co. of
Jan.

West, Toronto, Canada. Underwriter—McCoy & Willard,
Boston, Mass.
i

Proceeds—For

stockholders

proportion

None.

Co., Salt Lake City, Utah
Oct. 18 (letter of notification^ 2,000,000 shares of com¬
mon stock Price—At par (15 cents per share). Proceeds
—For exploration and development expenses.
Office—
524 Atlas Bldg., Salt Lake City, Utah.
Underwriter—
Van Blerkom & Co., same city.

one

company.
Price—To
ceeds
To be used

purchased, with amount of shares increasing
to amount of bonds purchased. Price—
100% of principal amount for bonds. Proceeds—To pay
balance
of
purchase price of Las Vegas Hotel, Inc.
capital
stock,
construction of
main hotel
building,
pavilions, swimming pool, furnishings, etc. Underwriter
—Company may sell debenture bonds and common stock
to dealers through brokers.
in

Desert Uranium

cent). Price—15 cents per share. Proceeds
—For mining activities. Office
824 Equitable
Bldg.,
Denver 2, Colo. Underwriter—John L.
Donahue, 430 16th

selling

N.

Jan. 26

expires

terest.

10

ture bonds

Fountain

Light Co. (2/14)
Jan. 14 filed $7,000,000 of sinking fund debentures due
1980. Proceeds—For construction program. Underwriter
—To be determined by competitive bidding. Probable
bidders: Halsey, Stuart & Co. Inc.; Salomon
Bros &
Hutzler; The First Boston Corp.; Lehman Brothers;
Union Securities Corp. and Wertheim & Co. (jointly);
Kidder, Peabody & Co., Blyth & Co., Inc. and Merrill,
Lynch, Pierce, Fenner & Beane (jointly); Equitable Se¬
curities Corp.; Kuhn, Loeb & Co. Bids—Expected to
be received up to noon (EST) on Feb. 14.

Co.

per

(par 10 cents), each purchaser of bonds to have
right to purchase common stock at par at rate of
shares for each $100 of bonds up to $9,900 of deben¬

the

(Republic of)
7 filed $2,500,000 of

Dallas Power &

of notification)

Price—At

Office—
Underwriter

ment.

299,000 shares of com¬
Price—$1 per share. Pro¬
and equipment and working

Clarington Sand & Gravel

and Mutual and for working capital.

Veterans, Courts and Public
Works 4% bonds due 1983.
Price—To be supplied by
amendment.
Proceeds —To Romenpower Electra Con¬
struction Co., which received
the bonds in payment
for work preformed for the Republic or one of more
of its agencies. Underwriters—To be named by amend¬

Change—Company was formerly known
Manufacturing Corp.
Office—244 Herkimer

Paley
Street, Brooklyn, N. Y.
Co., Philadelphia, Pa.

(par 10

stock; remaining 12,000 shares to be pur¬
Price—$1,400 per unit; and $2
share. Proceeds—To buy common stock

Fidelity Union Life Bldg., Dallas, Tex.

Jan.

Name

as

stock

Cuba

1.

machinery

common

815

(par five cents).

ceeds— For

10-year

—Securities Management Corp., same address.

Industries, Inc.
(letter of notification)

29

Co., Dallas, Tex.

Enterprises, Inc., Las Vegas, Nev.

$6,000,000 of 8% sinking fund debenture
1967, and 1,950,000 shares of common

bonds due July 1,

by underwriter.

of Budget

filed

stock

cent).

filed

29

Nov.

shares of

200

Circle Air
Nov.

com¬

cents) to be offered in units of $1,000 of debentures and ~

& Colorado Uranium Corp.
(2/15)
750,000 shares of common stock (par five
cents). Price—$1 per share. Proceeds—For exploration
and development program. Office —
Washington, D. C
Underwriter—Peter Morgan & Co., New York.
7

one

(letter of notification) $150,000 of 4%
debentures and 42,000 shares of common stock

Chesapeake

Dec.

(par

22

Dec.

determined

Freres

stock

Continental Loan

by competitive
bidding. Probable bidders: Blyth & Co., Inc. and Smith,
Barney & Co. (jointly) The First Boston Corp. and
Merrill Lynch, Pierce, Fenner & Beane
(jointly); Leh¬
man

of

York.

subsidi¬

of

IVIines, Inc., N. Y.
500,000 shares

notification)

Price—10 cents per share.
Office—100 West 42nd
St., New York. Underwriter—Justin Steppler, Inc., New

Co., San Francisco, Calif.

shares

of

Proceeds—For mining expenses.

Central & South West Corp. (3/1)
Feb. 2 filed 600,000 shares of common stock
(par $5).
Proceeds—To repay bank loans and loan from insurance
common

(letter

7

mon

convert¬

of

conipany, and to purchase
aries.
Underwriter—To be

For

—

Contact Uranium,

$500 each).
Proceeds—For acquisition
properties and for working capital. Office
—Berryessa Road, San Jose, Calif. Underwriter—Shaw,
&

Corp., Denver, Colo.
1,000,000 shares of com¬
(one cent per share). Pro¬

par

,

of additional

Hooker

United

exploration and development expenses.
Office—206 Mercantile Bldg., Denver, Colo. Underwriter
—Petroleum Finance Corp., Oklahoma City, Okla.

Under¬

par

Price—At

stock.

Dec.

Jan.

in

(letter of notification)

11

mon

writers—Paine, Webber, Jackson & Curtis and Stone &
Webster Securities Corp., both of New York.

ible

Uranium

Constellation

Proceeds

dealers

States.

28 filed

amount.

selected

underwriters or

through

writer—None.

tures due

Office—Toronto, Canada. Underwriter—None.

purposes.

each

Jan.

stock, plus $440,000 to he available

of

used to pay for

Price—50 cents per unit.

if Centra! Electric & Gas Co.

Proceeds

200,000 shares to Alator Corp. Ltd. and
Yam Securities Ltd., and $175,000 treasury funds, to be
sale

from

non-voting

incident to

of this

sale

—From

Jan.

share for

Morocco

El
Dec.

February 3, 1955

Bank

of

nois National Bank & Trust

of America

N.

geles, Calif.

T.

&

S.

A.,

Co., Chicago, 111.; and Ban
San Francisco and Los An

Underwriter—Morgan Stanley & Co., Ne-

York.

G.
Jan.

M. Shares, Inc.,
20

filed

Detroit, Mich.

shares of class A stock (par $1)
11,138 shares of class B stock (par $1) and 790 shares o
common stock (par $1) to be offered for subscription b
holders of the respective shares at the rate of one ne
52,585

Jan. 20

share for each 20 shares of stock held

stock

Proceeds—To purchase common stock of General Motor

(letter of notification) 25,000 shares of common
(no par). Price — $10 per share. Proceeds—For
working capital. Office—203 East Cotton St., Longview,

Tex.

Underwriter—D.

G.

Carter

Investment

Co.,

same

as

of record Feb. 8

Corp. through the exercise of rights received from tha
company.

At Dec.

31,

1954,

G. M. Shares, Inc.

address.

2,577,160 shares of General Motors common.

if Eaton & Howard Stock Fund, Boston, Mass.
capital stock. Price—At
par.
Proceeds—For investment.

Jan. 28 filed 20,000

Jan. 31 field 1,500,000 shares of

own

if General Securities, Inc., Minneapolis, Minn.
shares of capital stock. Price — A

market.

Proceeds—For investment.

Volume 181

Number 5400

The Commercial and Financial Chronicle

...

General Services Life Insurance Co.

Sept.

filed

14

50,000

(par $1).

Price—$10

corporate

purposes.

shares

of

class

share.

per

A

$100 and multiples thereof).
loan and for

stock

common

Proceeds—For general

Office—Washington, D. C.

Proceeds—To

repay bank
Underwriter—None. The

working capital.

Marine Midland Trust Co. of New York,
New York, is warrant agent.

Under¬

Co., Osgood Co. and Tennessee Products & Chemical
Corp. on the following basis: 675,549 shares to holders
540,439 outstanding shares of common stock (par
$5) of Tennessee Products & Chemical Corp., at the

120 Broadway,

of the

writer—None.

Telephone Co. of California (2/8)
Jan. 10 filed $12,000,000 of first
mortgage bonds, series
1, due Feb. 1, 1985. Price—To be supplied by amend¬
ment.

Jan.

and improvements.

determined

by competitive
Stuart & Co. Inc.;

Halsey,

Underwriter—To be

bidding.

Probable

general

bidders:

&

Paine, Webber, Jackson &
Curtis and Stone & Webster Securities Corp.
(jointly);
Kuhn, Loeb & Co. and Salomon Bros. & Hutzler

(jointly);

White.

Co. (jointly).

(PST)

Weld

&

Co.

and

Kidder,

Bids—Expected to be received

to 8 p.m.

General

Jan.

Uranium

Corp., Salt Lake City, Utah
(letter of notification) 1,200,000 shares of com¬
mon
stock.
Price—At par (25 cents per share).
Pro¬
ceeds—For development and exploration expenses.
Of¬
fice—404 Boston Building, Salt Lake City, Utah. Under¬
writer—P. G. Christopulos & Co., same city.
Oct.

★

Jan.
of

18

Metallurgical Corp.
147,500 shares of
30,000 shares are to

composed

—

117,500 shares

$10 per share.

ments and

be

offered

a

be

to

are

Proceeds

—

offered

to public.

★ Golden Bear Uranium, Inc., Reno^Nev.
Jan. 24 (letter of notification)
554,027 shares of common
stock (par 10 cents).
Price—35 cents per share.
Pro¬
ceeds—For mining expenses. Office—246 West First
St.,
Reno, Nev. Underwriter—None.
.

_

a

Basin

Jan.

21

mon

stock

Uranium

(letter

Corp., Las Vegas, Nev.
notification) 600,000 shares of com¬

of

(par

cent).

one

Price *—50 cents

share.

per

Proceeds—For

mining operations. Address—c/o Morse,
Graves & Compton, 25 Fremont
Street, Las Vegas, Nev.,
and Room 4, Coronet
Building, Las Vegas, Nev. Under¬
writer—None.
★

Green

Nov. 30

Uranium

Corp. (2/8)
(letter of notification) 2,000,000 shares of

com¬

stock (par one cent).
Price—15 cents per share.
Proceeds—For mining activities. Office—618 Rood
Ave.,
Grand Junction, Colo. Underwriter—Tellier &
Co., Jer¬
mon

sey

City, N. J.

Gu»f

Utilities

Co.

May 14, 1954 filed 160,800 shares of preferred stock (par
$100). Proceds—To redeem 50,000 shares of $4.50 divi¬
dend preferred stock, 60,000 shares of $4.40 dividend
preferred stock, 1949 series, and 50,000 shares of $4.44
dividend preferred stock at the
prevailing redemption

prices of $105, $105, and $105.75, respectively. Under¬
writer—To be determined by competitive
bidding. Probbidders..

auie

Brotners ana

tnone

tic

Vveoster becurities

Corp.; Lehman

UiquitaDle becurities Corp. (jointly); Kuhn,

Loeb & Co.; Glore, Forgan & Co. and W. C.
Langley &
Co. (jointly). Bids—Had tentatively been
expected to be
received up to 11:30 a.m. (EDT) on June 15 at The
Hanover Bank, 70 Broadway, New

York, N. Y., but of¬

fering has been postponed.
.Qii'f

bonds

due

Proceeds—io redeem S10.000.000 of 3^**

first mortgage bonds due

1981

and

$10,000,000 of 3%%

first mortgage
rate purposes.

bonds due 1983, and for general corpo¬
Underwriter—To be determined by com¬
petitive bidding.
Probable bidders: Halsey, Stuart &
Co Inc.: Lehman Brothers; Merrill
Lynch, Pierce, Fenner & Beane
and White, Weld & Co.
(jointly); Salo¬
Bros. & Hutzler and Union Securities
Co. and A. C. Allyn & Co., Inc.

mon

Loeb &

Corp.; Kuhn,
(jointly); Lee

Higginson Corp. and Carl M. Loeb, Rhoades & Co.
(jointly); Stone tic Webster Securities Corp, Bids—Had
tentatively been expected to be received up to 11 a.m.
(EDT) on June 15 at The Hanover Bank, 70 Broadway,
New York, N. Y., but offering has been
postponed.

★ Handy & Harman, New York City
Jan. 31 (letter of notification)
7,100 shares of
stock

Price

(par $1).

general corporate
York 38,

—

$6

per

purposes.

share.

common

Proceeds

For

—

Office—82 Fulton St., New

Underwiter—None.

N. Y.

★ Harvard

Brewing Co., Lowell, Mass.
Feb. 1 filed 345,760 shares of common stock
(par $1),
which the Attorney
General, as successor to the Alien
Property Custodian, is the owner and proposes to offer
at competitive bidding. If
any such bid is accepted, and
if

the

the

successful

bidder

will

company

file

plans

distribute

to

post-effective

the

shares,

amendments

supply the requisite additional information.
625,000 shares outstanding.

There

to
are

com¬

due

★

Brokerage

Co.,

Inc.,

Henning
'

Hotel

*

Hilton Hotels

Dec. 23 filed

Corp., Chicago. III.
$7,978,900 of 4 V2% 15-year convertible de¬

bentures, due Jan. 1, 1970, and $31,915,600 of 4%%
due Jan. 1, 1970,
being offered to

year debentures

tain

holders

Hotels

and

Statler

former

CoM

Inc.

holders
on

the

of

basis

common

of

$10

amount
of
convertible debentures
and
$40
amount of non-cor.vertible
debentures for each

share held.
—at

100%

The

15cer¬

stock

of

principal
principal
common

offering will expire on Feb. 14. Price
of principal amount (in denominations of




of-the

chase

new.^con-

raw

stock of

common

Marion; and 940 shares

1,410

materials and

ing capital.

tive

Miami, Fla,

Inc.; Lehman Brothers and Bear, Stearns & Co. (jointly);
Kuhn, Loeb & Co., Salomon Bros. & Hutzler and Union
Securities Corp. (jointly); Glore,
Forgan & Co.; Blyth
& Co., Inc. and The First Boston
Corp. (jointly); White,

(jointly); Harriman Rip¬
Co., Inc.; Equitable Securities Corp. Bids—Ex¬
pected to be received up to 11 a.m. (EST) at 20 Ex¬
change place, New York, N. Y.

Dec.

to

be

known

"Columbia

as

filed 660,000

2

Ltd., Toronto, Can.
shares of common stock

Canadian), of which 500,000 shares

are

Co-

.

1

(letter of notification) 150,000 shares of common
(par 25 cents). Price—$2 per share. Proceeds—
general corporate purposes. Office—2310 Main St.,
Houston, Texas. Underwriter—Cobb & Co., Inc., same

city.

,

★ Minnesota Fund, Inc., Minneapolis, Minn.
Jan. 28 filed 200,000 shares of capital stock.
Price—At
market.

Proceeds—For

Missouri

Packing

investment.

Natural Gas Co.

Jan. 6 filed 120,336 shares 01 common stock (par
$2.50),
of which 114,000 shares are to be for account of com¬

Lake Lauzon Mines,

Aug.

&

For

★ L & N Products, Inc. (Wash.)
Jan. 24 (letter of notification)
20,000 shares of common
stock. Price—At par ($5 per share).
Proceeds—To de¬
velop equity capital for purpose of investing in a whollyUnderwriter—None.

Newman

stock

„

subsidiary

D.

Military Investors Financial Corp.

★ Keystone Custodian Funds, Inc., Boston, Mass.
the following additional securities:
250,000
shares, series S-3; 600,000 shares, series S-2; and 600,000
shares, series K-2.
Price—At market.
Proceeds—For
investment.

Corp."

Frank

Inc.
$250,000 of 6%% income
convertible debentures (subordinated) due Feb. 1, 1965,
to be offered initially to stockholders.
Price—100% of
par (in units of $100 or multiples thereof).
Proceeds—
For working capital, etc.
Office—22 Jericho Turnpike,
Mineola, N. Y. Underwriter—None.

Weld & Co. and Shields & Co.

owned

—

Hialeah, Fla.

machinery, and for work¬

new

Underwriter

~

Micro-Moisture Controls,
Jan. 13 (letter of notification)

ley &

and 6,336 shares for account of selling stockholder.
Price—To be supplied by amendment (expected around
$8.50 per share. Proceeds—To repay bank loans and for
pany,

(par

$1,

to be offered in

behalf

of the company and 160,000 shares for account
Percy E. Rivett. Price—40 cents per share, U. S. funds.
Proceeds
For development and exploration expenses.
Underwriter—To be named by amendment.

construction

of

Underwriter—Straus, Blosser &

program.

McDowell, Chicago,

111.

—

★ Missouri
Jan.

★ Lamson Aircraft Co., Seattle, Wash.
Jan. 25 (letter of notification)
9,306 Vz shares of common
stock. Price—At par ($10 per share). Proceeds—To re¬
pay bank loan and for working capital.
Office — 807

Ave., Seattle, Wash.

and

ceeds—To

from date of issue.

reduce

bank

loans

Minn.

Northwestern

Price—At par.

and

be

offered

for

about Feb. 8

shares held
to

expire

ment.

Missouri

on

subscription

on

by

the basis of

record

for

new

to

stock

(par $1)
of

to
10

St., Salt

Office—38

South

stock

Se¬

one cent).
Price—Three cents per share.
exploration and development costs. Office
Bldg., Salt Lake City, Utah.
Underwriter—
Utah Securities Co., same city.

Magic Metals Uranium Corp.
Sept. 14 (letter of notification) 2,995,000 shares of com¬
mon stock
(par one cent). Price — 10 cents per share.
and

development

expenses.

Office—65 East 4th South, Salt Lake City, Utah.
writer—Mid-Coninent Securities, Inc., the same
★

Under¬

city.

Merritt-Chapman & Scott Corp.

Dec.

21

filed 3,018,567 shares of -common stock
(par
being offered in exchange for outstanding stock
of New York Shipbuilding Corp., Devoe & Raynolds
Co., Inc., Newport Steel Corp., Marion Power Shovel

$12.50)

each

10

Feb. 8.

Underwriter—Edward

program.

*

D.

'

5

Cristo

(letter

E.

Reed

Co.,

139

North

Virginia-

5

Cranmer

Bldg.,

Denver,

Colo.

Un¬
V

★ National Homemakers Finance Corp.
(letter of notification) 1,880 shares of 7% cumu¬
lative preferred stock (par $100) and 940 shares of class
A common stock to be offered in units of one preferred
and one-half common share. Price—$100 per unit. Pro¬
ceeds—For working capital.
Office—4313 Hamilton St.,
Hyattsville, Md. Underwriter—None, stock to be offered
through salesmen.
Jan. 26

(par

exploration

for

writer—None.

—239 Ness

Proceeds—For

(par $1) be¬

stockholders of

share

★ Morrison-Knudsen Co., Inc. and Broadway
Holding Corp.
Jan. 24 (letter of notification) 11,111 shares of common
stock (par $10) to be offered to employees only pursuant
to Employees' Stock Purchase Plan.
Price—At $2 less
than the market price (market Jan. 21 $27 per share),
the aggregate not to exceed $300,000.
Proceeds—To be
applied against cost of purchasing the shares. Under¬

Mac Fos

mon

new

oversubscription privilege); rights
Price—$20.75 per share. Proceeds

an

Office—Ernest .and

Main

Underwriter—Seaboard

common

derwriter—Investment Service Co., same city.

Corp.

operations.

City, Utah.

on

one

Uranium, Inc., Denver, Colo.
(letter of notification) 3,000,000 shares of com¬
mon stock
(par five cents). Price—10 cents per share.
Proceeds—For exploration and development operations.

Proceeds—For investment.

mining

Lake

(with

of

rate

Montezuma

Jan.

Jan. 4 (letter of notification) 4,300,000 shares of common
stock (par one cent). Price—Five cents per share. Pro¬

ceeds—For

Co.

St., Reno, Nev.

★ Lonm?s-Sayles Mutual Fund, Inc., Boston, Mass.
150,000 additional shares of common stock.
Uranium

at

Underwriter—James

Underwriter—None.

Jan. 28 filed

market.

Price

and develop¬

Uranium Corp., Moab, Utah
of notification) 3,000,000 shares of com¬
mon stock
(par one cent). Price—10 cents per share.Proceeds—For exploration and development expenses.
Oct.

mining operations. -Office—402 Darling
Bldg., Salt Lake City, Utah.
Underwriter — Uranium
Mart, Inc., 146 S. Main St., Salt Lake City, Utah.

Strike

12

construction

Monte

record

share for each

Proceeds—For

Lucky

expire

—For

Liberty Uranium Corp., Salt Lake City, Utah
July 1 (letter of notification) 3,000,000 shares of commoo
stock (par one cent).
Price—Three cents per share.

Price—At

Jan.

shares held

(with an oversubscription privilege); rights
Feb. 23. Price—To be supplied by amend¬

Proceeds—For investment.

Utilities

Jones & Co., St. Louis, Mo./i

stockholders

one

share of each class of stock.

ing offered for subscription by

Pro¬

Federal

Lehman Corp., New York (2/9)
Jan. 20 filed 420,623 shares of capital

one

Proceeds—For exploration

Dec. 20 filed 27,420 shares of common stock

working capital.
Bldg., Minneapolis,
Underwriter—Daniels & Smith, Inc., same city.

Office—305

unit.

ment, etc. Underwriter—Dale E. Klepinger & Associates,
W. Dartmouth, Kansas City, Mo.

Minneapolis, Minn.
(letter of notification) 13,000 shares of preferred
(par $10) and. $170,000 of 8% subordinate notes

due five years

per

203

Lea Finance Co.,
Nov. 3
stock

Uranium Corp., Kansas Citv, Mo.
150,000 shares of preferred stock (par $5).
150,000 shares of common stock (no par) to be of¬
24 filed

fered in units of

■—$5

Underwriter—None.

Proceeds—For

—

to

Mi-Ame Canned Beverages Co.,

Underwriters—To be determined by competi¬
bidding. Probable bidders: Halsey, Stuart & Co.

Proceeds

Bldg., Casper, Wyo.

Merritt,

of

struction.

Uranium, Inc., Salt Lake City, Utah
Sept. 16 (letter of notification) 4,000,000 shares of com¬

—

by

each share

holders

stock of Newport; 26,114
17,409 outstanding shares of
of Marion Power Shovel Co.,
at the rate of IV2 shares for

Oct. 28 (letter of notification) 200,000 shares of common
stock. Price—At par ($1 per share). Proceeds—To pur¬

Highland Uranium, Inc., Casper, Wyo.
13 (letter of
notification) 6,000,000 shares of com¬
mon stock (par two
cents). Price—Five cents per share.
For exploration and
development expenses.
Office—208 Turner-Cottman
Bldg., Casper, Wyo. Under¬
writer
Casper

ovyned

of

(par $10)

Kansas City Power & Light Co. (2/15)
Jan. 19 filed $16,000,000 of first
mortgage, bohds
1985. Proceeds—To repay bank
loaus

curities Corp., Washington, D. C.

Dec.

stock

Offer will expire on Feb. 28.

Fourth

1954 filed $24,000,00 first mortgage

1, l»b4.

the

holders

to

Phillips Petroleum Bldg., Salt Lake City, Utah.' Under¬
writer—Hunter Securities Corp., New York.
*
~

Utilities Co

May 14,
June

stock of N. Y.

outstanding shares of class B
coprmon stock
(without par value) of the Osgood Co.,
not owned by Merritt or
Marion, at the rate of one share
for each IV2 shares of class B common stock of
Osgood.

Utah

Jan. 24 filed

Mountain

common

shares

not

an¬

..

andJEoc.

.

for each 2.1 shares of

common

stock {par five cents).
Price—10 cents per share.
Proceeds — For oil and mining expenses.
Office—318

For capital improve¬

common

common stock (par $1) of Newport Steel
Corp., not owned by Merritt, at the rate of one share

mon

group

Office—Beverly, Ohio. Un¬
Co., Cleveland, Ohio.

&

\

2,650,000 shares of

(par $5),

to

Associates, 505 Macon St., Fort Worth, Tex., and

share for each share of

one

standing shares of

Underwriter—John A. Aicholtz

Justheim Petroleum Co., Salt Lake
City,
Dec. 9 (letter of notification)

working capital.

derwriter—McDonald

★ Great

&

largely of stockholders of Globe Iron Co, the

parent, and
Price

stock

common

Properties & Oil Development Corp.
of notification) 30,000 shares of captal

other.

of

Shipbuilding; 27,907 shares to holders of the 58,605 out¬

(letter

1109, Wichita Falls, Tex.

(2/9)

filed

which

17

stock

common

(par $1)

rate of

stock. Price—At par ($10 per share). Proceeds—For fur¬
ther exploration and development.
Addres—P. O. Box

27

Globe

filed

Jarmon

of

Devoe; 242,700 shares to holders
outstanding shares of class B common
of Devoe, at the rate of 1% shares for
each of class B
common stock of Devoe; 1,290,252 shares
to holders of the
1,290,252 outstanding shares of common
stock (par $1) of New York
Shipbuilding Corp., at the
stock

Spa, Inc., Reno, Nev.
12,00u shares of common stock (no par).
Price—$500 per share. Proceedsr—For land, construc¬
tion, working capital, etc. Underwriter—None.
23

shares for each share

share of class A stock of
of the 182,025

Reed

International

Peabody &
up

Underwriter—Keith

purposes.

1V\

standing shares of class A stock (par $2) of Devoe &
Raynolds Co., Inc. at the rate of 1% shares for each

Co., Dallas, Tex.

Nov.

Feb. 8.

on

corporate

of

Tennessee; 755,105 shares to holders of the 453,063 out¬

6

(letter of notification) 50,000 shares of common
stock (no par), of which 5,000 shares are to be first of¬
fered to employees and the remainder to public. Price—
$4.60 per share; to public $5 per share. Proceeds—For

Proceeds—To discharge bank loans and for prop¬

additions

erty

rate

Hycalog, Inc., Shreveport, La.

General

39

(635)

■

★ New Canaan Co., Greenwich, Conn.
27 (letter of notification) 4,208 shares of class.A
stock (no par) and 1,052 shares of class B stock (no par)
Jan.

to

be

offered

class B share.

in

units

of

four

class

A

shares

and

one-

unit. Proceeds—To A. L.
Glidden, the selling stockholder. Address — Box 1069,
Price—$95

Greenwich, Cojnn.

per

Underwriter—Glidden, Morris & Co.,

New York.

Continued

on

page

40

The Commercial and Financial Chronicle...

(636)

40

39

Continued from page

Ltd., Toronto, Canada

& Oils,

Coal

Pacific

New

"D") 275,000 shares of common stock
(no par), of which 120,000 shares are to be offered in
Canada and 155,000 shares in the United States. Price—
55 cents per share. Proceeds — To selling stockholders.
Underwriter—L. D. Friedman & Co., New York.
28 (regulation

Dec

Development Co.
Jan. 19 (letter of notification) 2,990,000 shares of com¬
mon
stock (par two cents). Price
10 cents per share.
Proceeds —For mining operations.
Office —501 Felt
Building, Salt Lake City, Utah. Underwriter—None.
&

Uranium

Universe

4- New

Shipbuilding Corp.
Dec. 6 filed 74,925 shares oi common stock (par $1) be¬
ing offered in exchange for 374,624 shares of common
stock (par five cents) of Highway Trailer Co. at rate of
one share of Shipbuilding stock for each five shares of
common stock of the Trailer company.
Offer will expire
on
Feb. 15, unless extended.
As of Jan. 26, a total of
312,350 shares (83.3%) of Highway common stock have
been deposited for exchange.
•

•

York

New

Mines

Nipissing

Jan.

Co. Ltd.,

Canada

Toronto,

(par $1—

1,200,000 shares of common stock

filed

3

it Porter-Cable Machine Co.
(letter of notification) 24,000 shares of common
(par $10). Price—$12.50 per share. Proceeds—For
working capital, etc. Office—Syracuse, N. Y. Under¬
writer—George D. B. Bonbright & Co., Rochester, N. Y.

Jan. 27

being offered as "speculative" securities for
subscription by common stockholders of record Jan. 26,
1955, on a share-for-share basis; rights will expire on
Feb. 28.
Price—$2 (Canadian) and $2.06 (U. S.) per
share; Proceeds—For payment of options, development

stock

(par $100).

for machinery and equipment. Under¬
writers—Allan H. Investments, Ltd.; Alator Corp., Ltd.;

Louis

A.

Chester;

all of Toronto,

Streit;

Bradley

and

it Ohio Service Holding Corp.
27 (letter of notification;
150 shares of common
'stock. Price—$225 per share. Proceeds — For general
Jan.

Underwriter—None.

corporate purposes.

Olympic Development Co., Stamford, Conn.
13 (letter of notification) 29,698 shares of common
ot be offered for subscription by stockholders at

stock

rate of

one

new

At par

($1

per

Office

capital.

30 Commerce

—

Underwriter—None.

Uranium Corp.,

Paramount

Price—

Proceeds—To retire short-term

share).

for working

and

six shares held.

share for each

St., Stamford, Conn.

(letter of notification) 6,000,000 shares of capital
fltock. Price—At par (five cents per share). Proceeds—
For mining expenses. Office—325 Main St., Moab, Utah.
Underwriter—Van Blerkom & Co., Salt Lake City, Utah.
Pay Day Uranium Co., Las Vegas, Nev.
(letter of notification) 2,50u,ou0 shares of capital

Oct. 15

Price—10 cents per share. Pro¬
ceeds—For exploration and development costs. Office—
230 Fremont St., Las Vegas, Nev.
Underwriter—Allied
(par two cents).

Underwriter Co.. the

city.

same

it Peak Uranium Corp., Denver, Colo.
26 (letter of notification) 1,000,000 shares of

Jan.

Price—At

stock.

com¬

share).
Pro¬
proposed additional

(one cent per

par

ceeds—For estimated expenses

for

a

issue

of approximately $290,000 aggregate amount.
Of¬
fice—1643
South
Utica, Denver, Colo.
Underwriter—
Petroleum

Finance Corp.,

Oklahoma City, Okla.

Underwriters—Morgan Stanley & Co.; Drexel &

gram.

858

2

filed

shares

shares of

65,455

of

stock (no par);
preferred stock (par

common

cumulative

4.40%

shares

two

of

Scranton

common

stock;

(b)

one

share of Pennsylvania 4.40% series preferred stock for
each
share
of
Scranton 4.40%
cumulative
preferred

stock; and (c) one share of Pennsylvania 3.35% series
preferred stock for each share of Scranton 3.35% cumu¬
lative preferred stock, or, at the election of the Scran¬
ton shareowners, for each share of Scranton's 3.35%
cumulative preferred stock, two shares of Pennsylvania's
stock, or for each lot of four shares of Scranton
3.35% cumulative preferred stock, three shares of Penn¬
sylvania's 4x/2% preferred stock.
Pennsylvania owns
common

approximately 91%
the

of the preferred stock

stock

common

of

Scranton.

and 91%

Statement

of

effective

Dec. 22.

Petroleum
Dec.

27

100,000

Reserves, Inc., New York

filed

$7,500,000

shares

of

5%

1,000,000 shares of
offered
one

in

share

stock.

—

Temporarily

Telephone Co., Rainier, Wash.
(letter of notification) $85,000 of 5V2% 20-year

14

of

4%

debentures

common

stock

stock

units of $75 principal
of

due
1970,
(par $25) and
(par 10 cents) to be

preferred

preferred stock and

amount of debentures,
10 shares of common

Price—To be supplied

by amendment. Proceeds
—For acquisition of properties.
Underwriter—William
A. M. Burden & Co., New York.
•

sinking fund bonds due Dec. 1, 1979. Price—At par (in
denominations of $1,000 each).
Proceeds—To purchase
assets of Methow Valley Telephone Col, refund mort¬
gage debt, and for working capital.
Underwriter—Wm.
P. Harper & Son & Co., Seattle, Wash.
Ranger Lake Uranium Mines, Ltd., Toronto,

—

To

reduce

bank

loans

Corp., New York.

Francisco, Calif.
•

stock

stock

(par $1),

9,of which 75,000 shares
and

are to be sold by the company
210,000 shares by the Englewood Corp. Price—To

be suppiled by amendment.
ditional assets and for

Proceeds—To purchase ad¬

working capital. Underwriter
Allen & Co. and Reynolds &
Co., both of New York.




Jan.

24

stock.

Underwriter—None.

(letter of notification) 3,400 shares of common
At par ($25 per share). Proceeds—For

Price

—

down payment on

acquisition of Ferris Field, renovation

of

present facilities and for working capital.
Office—.
408 Hutton Bldg., Spokane 4, Wash.
Underwriter—None.
Star Uranium

Corp., Salt Lake City, Utah ' "
(letter of notification) 6,000,000 shares of com¬
(par one cent). Price—Five cents per share.

Aug. 2

stock

shares for each I2V2

—$10.01

shares of common
being offered for subscription by

(par 50 cents),

stockholders of record

Jan.

14

the basis of

on

shares held (with

share.

Proceeds—Toward

one

new

oversubscrip¬

an

tion privilege); rights to expire on Feb. 28.
per

Price—$4.25

of construction

payment

sulphuric acid plant at Rico, Colo. Office—132 South
Main St., Salt Lake City, Utah. Underwriter—None, but
Bonneville-On-The-Hill Co., a stockholder will subscribe
for all shares not taken by other stockholders. Subscrip¬
tion Agent — Guaranty Trust Co. of New York, 140

—

one

Rolon Tire Chain

share of each class of stock. Price

unit. Proceeds—For purchase of land and to
construct and equip a luxury hotel. Underwriter—None.
•

per

Stewart Uranium

Jan.

Drilling Co., Inc. (2/14-18)
(letter of notification) 500,000 shares ot class A
(par one cent). Price—50 cents per share. Pro¬

3

stock

ceeds—For

Bank

&

mining expenses. Office—Citizens National
Bldg., Baytown, Texas. Underwriter-

Trust

General Investing Corp., New York.

it Sunrise Mountain Oil Co., Inc. (Nev.)
18 (letter of notification) 35,000 shares of common
stock. Price
At par ($1 per share). Proceeds
For

Jan.

—

—

lease

rentals

and

general

corporate

purposes.

Under¬

writer—None.

Corp., Denver, Colo.

Oct. 27 (letter of notification) 60,000 shares of common
stock. Price—$1 per share. Proceeds—For increased in¬

ventory, working capital, sales and production expenses,
etc. Office—150 Tejon St., Denver, Colo. Underwriter—
Peters, Writer & Christensen, Inc., same city.

Superior Uranium Co., Las Vegas, Nev.
Sept. 1 (letter of notification) 29,910,000 shares of com¬
mon stock.
Price—At par (one cent per share). Proceeds
—For development and exploration costs.
Office—Medi¬
cal Arts Bldg., Las
Vegas, Nev. Underwriter—Uranium
Brokers, Inc., the same city.
Swedes

Uranium Corp., Salt Lake
City, Utah
of notification) 2,500,000 shares of com¬

Dec. 7 (letter of notification) 2,000,000 shares of common
stock (par one cent).
Price—15 cents per share. Pro¬

Jan.

5

ceeds

exploration and development expenses of
properties. Office—618 6th St., Box 8,
Rapid City, S. D. Underwriter—Philip Gordon & Co.,
Inc., New York.

mon

stock

Salisbury Broadcasting Corp., Paxton, Mass.
Jan. 20 (letter of notification) $150,000 of 5% notes and
6,000 shares of common stock (par $1) to be offered first
to stockholders in units of $1,000 of notes and 40 shares
of stock. Price—$1,000 per unit. Proceeds—For working
capital. Office — Asnebumskit, Paxton, Mass. Under¬
writer
Kinsley & Adams, 6 Norwich St., Worcester,

Sytro Uranium Mining Co., Inc., Dallas, Texas
Sept. 9 (letter of notification) 2,975,000 shares of com¬

For

—

uranium and oil

—

Mass.

Salt Lake
Dec.

30

stock

Hardware Co.,

Salt Lake City, Utah
4,062 shares of common

(letter of notification)

$10), to be first offered to employees who
stockholders; then to stockholders; and any

(par

not

ceeds—To

shares

restore

for acquisition

after

to

Feb.

4,

1955

to public.

Pro¬

working capital amount expended

of these securities.

West

St., Salt Lake City,
Hogle & Co., same city.

Office—105 N.

Underwriter

Utah.

Third

J. A.

—

V.

Klein

Co.

and

McGrath

Securities

Corp.,

both

ot

New York.
San

Price—15 cents

cent).

one

ceeds— For

mining operations. Office
Junction, Colo. Underwriter
Jersey City, N. J.
Grand

Pro¬

&

Co.,

Corp., Las Vegas, Nev.

Proceeds—For mining expenses.

Office—130 South 13th

East, Salt Lake City, Utah. Underwriter—Peters, Writer
& Christensen, Inc., Denver, Colo.

Development Corp.

underwriter and

prior property owner to be amended
share. Proceeds—For development
and exploration expenses. Office—Newhouse
Hotel, Salt
cents

Underwriter

Uranium

&

—

Van

Blerkom

&

Co.,

Proceeds—For mining expenses. Address—P. O. Box 330,
Edgemont, S. D. Underwriter—Capper & Co., New York.
7

mon

stock

Uranium & Oil Corp.,

(letter

of notification)

(par

Proceeds—For

one

cent).

of

America

Western

—

per

Building,

Securities

share.

proper¬

Dallas,

Corp.,

Salt

Tacony Uranium Corp., Denver, Colo.
Aug. 17 (letter of notification) 1,700,000 shares of com¬
mon
stock.
Price—10 cents per share. Proceeds—For
exploration and development expenses.
Office — 317
Railway Exchange Building, Denver, Colo.
—E. I. Shelley Co.,
Denver, Colo.

Underwriter

Temple Mountain Uranium Co.
Oct.

7

mon

stock

(letter of notification) 3,500,000 shares of com¬
(par 21/? cents). Price — 3 cents per share.
exploration and development expenses.

Office—39

Exchange Place, Salt Lake City, Utah.

Inc.

2,000,000 shares of

Price

—

Un¬

derwriter—Walter Sondrup, same city.
Texas Electric Service Co.
Jan.

19

1985.

filed

$17,000,000

of

Proceeds—To redeem

(2/23)

first

mortgage bonds due
$7,000,000 3%% bonds and

construction

sey,

and

Merrill

Lynch,

Pierce,
Fenner
&
Beane
Corp., Hemphill, Noyes &
(jointly). Bids—Tentatively ex¬
pected to be received up to 11:30 a.m. (EST) on Feb. 23.

Co.

and

Union

Drexel

Securities

&

Co.

Texas International

Sulphur Co.
filed 455,000 shares of common stock (par 10
cents), of which 385,000 shares are to be offered for
subscription by common stockholders at the rate of one
June 21

are

share for each 4*&

com¬

10 cents per share

mining expenses. Offices — 506 Beason
Bldg., Salt Lake City, Utah, and 1016 Baltimore Bldg.,

shares held; and

70,000 shares

for account of certain selling stockholders. Price—To

be supplied by amendment. Proceeds—For
exploration
and drilling, and payment of bank loans and

advances.
Underwriter—Vickers Brothers, New York, on a "best ef¬
forts" basis.

Texboard, Inc., Dallas, Texas
17 filed $1,500,000 of 6% series A debentures due
serially from Feb. 1, 1957 to Aug. 1, 1961, and $1,000,000
Jan.

of 6%

Feb.

series B convertible debentures due serially from

1, 1962 to Aug. 1,

amendment.

1966.

Price—To be supplied by

Proceds—To construct and operate a manu¬

facturing plant
manufacturing

near Orange, Tex., for the
purpose of
insulation
building
products.
Under¬

Cook

Mining Co., Inc.

(letter of notification) 1,200,000 shares of com¬
stock (par one cent).
Price -— 25 cents per share.

Solomon

Underwriter

Life

Lake City, Utah.

writer—Emerson

13

Oct.

Texas.

per

City, Utah.
city.

Socfak

Office —1406

new

Co., Salt Lake City, Utah
(letter of notification) 3,000,000 shares of com¬
stock (par five cents).
Price—10 cents per share.

17

Slick Rock Uranium

cents

development of

ties.

(jointly);

Silver Reef Uranium

Jan.

stock (par five cents).
Price—10
Proceeds—For exploration and

mon

Co.

share.

Uranium, Inc., Reno, Nev.
(letter of notification) 2,994,000 shares of com¬
(par five pents). Price—10 cents per share
Proceds—For exploration and development costs.
Of¬
fice—211-206 N. Virginia Street, Reno, Nev. Underwriter

mon

city.

Mineral Bldg.,

stock

—Western Securities

same

Tellier

per
—

—

Nov. 22

Jan.

writer—Guss & Mednick Co.,

program.
Underwriter—To be deter¬
by competitive bidding. Probable bidders: HalStuart & Co. Inc.; The First Boston Corp.; Kuhn,
Loeb
&
Co., Blyth Co., Inc. and Lehman Brothers
(jointly); Salomon Bros. & Hutzler; Kidder, Peabody &

Silver Pick

mon

Price—10 cents per share.
exploration and development expenses.
Office—Newhouse Bldg., Salt Lake City, Utah. Under¬

mined

Miguel Uranium Mines, Inc.
(par

(par three cents).

Proceeds—For

for

Jan. 6 (letter of notification) 2,000,000 shares of common
stock

(letter

Proceeds—For

Samicol Uranium Corp., Santa Fe, N. M.
Sept. 14 filed 300,000 shares of common stock (par 10
cents).
Price—$2 per share.
Proceeds—For develop¬
ment and exploration expenses, etc.
Underwriters—R

mon

Pittston Co., New York (2/7-11)
14 filed 285,000 shares of common

Jan.

5, N. Y.

offered in units of
Rico Argentine Mining Co.
Dec. 2 (letter of notification) 70,395

Lake

Underwriter—First California Co., San

York

•

same

special products.

by Hamilton stockholders owning not in excess of
8,000 shares of Hamilton stock. Office—70 Pine St., New

Stardust, Inc., Reno, Nev.
July 9 filed 621,882 shares of preferred stock (par $10)
and 621,882 shares of common stock (par one
cent) to be

tric

working capital. Business—Manufacturer of elec¬
meters, electric test instruments, precision
resistors, aircraft and sensitive miniature relays, and

accept¬

ed

Securities

and for

panel

of 3 V2 Southeastern shares for each Hamilton share. This
offer shall terminate when offer shall have been

For exploration and development costs.
Underwriter—Ned J. Bowman Co., Salt Lake
City, Utah.

(regulation "D") 300,000 shares of common stock
(par 10 cents). Price—$1 per share. Proceeds—For gen¬
eral corporate purposes.
Underwriter—James Anthony

Price—10

company

stockholders.

Public Service Co. (2/8)
(letter of notification) 28,000 shares of common
stock
(par 10 cents) to be offered in exchange for
Hamilton Gas Corp. capital stock (par
$1) on the basis

Proceeds

Canada

and

selling

Southeastern

Dec. 30

Oct. 8 (letter of notification) 2,900,000 shares of common
stock (par five cents), including shares for option to

of

Underwriter—E. R. Bell & Co., Kansai

Jan. 24

mon

Phaostron Co., South Pasadena, Calif. (2/9)
Jan. 19 filed 90,000 shares of common stock
(par $1), of
which 50.000 shares are for the account of the

40,000 shares for account
Price—$6 per share. Proceeds

City, Mo.
City, Mo.

it Spokane Indians Baseball Club, Inc.

Rainier
Dec.

unsubscribed

$100); 5,378 shares of 3.35% cumulative preferred stock
(par $100); and 4,032 shares, of 4V2% cumulative pre¬
ferred stock (par $100) being offered in exchange for
securities of The Scranton Electric Co. on the following
basis: (a) one share of Pennsylvania common stock for
each

Offering

Co.; and Glore, Forgan & Co.
delayed.

are

Pennsylvania Power & Light Co.
Dec.

pro¬

Rushmore Uranium & Oil Corp.

Moab, Utah

Oct. 7

mon

and for construction

loans

Broadway, New York 15, N. Y.

Jan.

stock

bank

of

Canada.

notes

250,000 shares of cumulative preferred stock
Price—To be supplied by amendment. Pro¬

ceeds—To reduce

Canadian)

of properties, and

Electric & Gas Co.

Public Service
Dec. 22 filed

Kansas

Thursday, February 3, 1955

Co., Palm Beach, Fla.

Thunderbird Uranium

Co.f Reno, Nev.
1,800,000 shares of com¬
mon stock
(par 10 cents). Price — 15 cents per share.
Proceeds—For mining activities. Office—206 N. Virginia
St., Reno, Neb. Underwriter—Stock, Inc., Salt Lake City.

Aug. 3

Top

(letter of notification)

Notch Uranium & Mining Corp.
notification) 4,000,000 shares of common

Jan. 5 (letter of
stock

(par two

Proceeds

—

cents).

Price — Five cents per share.
and development expenses.

For exploration

Volume 181

Number 5400... The Commercial and Financial Chronicle

(637)
Office—94

North

Main

St.,

Smithfield,

Utah.

Uranium Corp.
(letter of notification) 2,990,000 shares of com¬
mon
stock.
Price—At par (10 cents per share). Pro¬
ceeds—For exploration and development costs.
Office
1

—358 S. 3rd St.

East, Salt Lake City, Utah. Underwriter
Corp., same city.

fice—906 Walker Bank Bldg., Salt Lake City, Utah. Un¬
derwriter—Western Securities Corp., the same city.

retire

Uintah

Uranium, Inc., Salt Lake City, Utah.
(letter of notification) 15,000,000 shares of com¬
(par one cent). Price—Two cents per share.
Proceeds
For exploration and
development costs.
Office—424 Judge Bldg., Salt Lake City, Utah. Under¬
stock

it United States Ceramic Tile Co.

(

.

,

demand

Jan. 31 filed 70,000 shares of common stock
(par $5), of
which 8,538 shares are to be offered
by the company and

61,462 shares by certain selling stockholders. Price—To
supplied by amendment. Proceeds — For working

be

capital and general corporate
Ohio.

Underwriter

—

Office—Canton,
Marache & Co., New

purposes.

Granbery,

York.

it United Uranium Corp., Denver, Colo.
26 (letter of notification)
4,133,329 shares of com¬
mon stock (par one
cent), of which 2,133,329 shares are
three

by

offer of rescission to 37 shareholders at

an

cents

share;

per

and

2,000,000

shares

to

are

be

publicly offered at 10 cents per share. Proceeds—For
mining expenses. Underwriter—John L. Donahue, 430
16th Street, Denver
2, Colo.
Universal Petroleum Exploration &
Drilling Corp.
Oct. 4 (letter of
notification) 300,000 shares of common
stock.

Price

At par ($1 per share). Proceeds — For
Boy (drilling equipment which company
out), and working capital. Office—c/o Edwin J.
Dotson, attorney-at-law, Simon Bldg., 230 Fremont St.,
Las Vegas, Nev.
Underwriter—Robert B. Fisher In¬
vestments, 510 South Fifth St., Las Vegas, Nev.
—

cost of Driller
rents

Urainbow, Inc., Salt Lake City, Utah
Aug. 31 (letter of notification) 2,000,000 shares of
stock

mon

Proceeds

com¬

(par two cents). Price—15 cents per share.
For exploration and development
expenses.

Co., the

Under¬

same

city.

Nov.

tal stock.

Price—At par

(five cents per share).
Pro¬
drilling program upon two groups of
claims.
Address—Box 709, Wallace, Idaho. Underwriter
—Wallace Brokerage
Co., same city.
ceeds—For

core

Uranium Shares, Inc.,
Denver, Colo.
(letter of notification) 30,000,000 shares of
mon
stock.
Price—At par (one cent per
Dec. 22

Manatee River Hotel

.

15, 1964, and 580,000 shares of

and

share of stock.

one

common

$50 deben¬

one

Price—To be

stock

supplied by

Proceeds—From sale of units and 1,125,000

additional shares

of

common

stock

and

private sales of
$55,000,000 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
Offering—Postponed indefinitely.

York.

West Coast

Pipe Line Co., Dallas, Tex.

Nov. 20, 1952 filed 1,125,000 shares of common stock
(par
50 cents). Price—To be supplied by amendment. Pro¬

ceeds—Together with other funds, to be used to build
pipeline. Underwriters—White, Weld & Co. and Union
Securities Corp., both of New York.
Offering—Post¬
poned indefinitely.
it Western Hills Inn, Fort Worth, Texas
Jan. 31 filed 200,000 shares of capital stock
(no par).
Price—$5 per share.
Proceeds—Together with other
funds, to construct, furnish and equip hotel to be built
between Dallas and Fort Worth, Texas.
Underwriter—
Schwanz & Co., Inc., Aurora, 111.
it Westport Properties Corp., Kansas City, Mo.
27 filed 479,158 shares of common stock
(par $1)
to be offered for subscription by stockholders of Chi¬
cago, Aurora & Elgin Ry. Co. at rate of one Westport

Jan.

share for each

—$2

per

Chicago, Aurora & Elgin share held. Price

share.

Proceeds—To repay bank loans and for

working capital.
Kansas

Underwriter—George K. Baum & Co.,

City, Mo.

share). Pro¬
mining expenses. Office—3038 Wyandot St.,
Colo.
Underwriters—Kamp & Co., Fred W.

ceeds—For

Denver,

Miller & Co. and
ver,

Mile

Winfield

Mining Co., Moab, Utah.
(letter of notification) 500,000 shares of common
stock (par five cents). Price—20 cents per share. Pro¬
ceeds—For mining expenses.
Office—M. L. C. Bldg.,

Jan. 20

P. O. Box 648,

Moab, Utah. Underwriter—Security Ura¬
Service, K. O. V. O. Bldg., Provo, Utah.

nium

it Woman's Income Fund, Inc., Baltimore, Md.
28 filed 500,000 shares of capital stock.
Price—At

High Securities Co., all of Den¬

market.

Proceeds—For

Consensus Inc.

,

Co., Inc.
(letter of notification) 299,900 shares of

Uranium, Inc., Salt Lake City, Utah
(letter of notification) 6,000,000 shares of com¬
mon stock (par one
cent). Price—Five cents per share.
Proceeds^-For- exploration "arid"
development costs. Of¬

Dec. 21

fice—420

E. M. North

7

Felt

Building, Salt Lake City, Utah. Under¬
writer—Western Securities Corp., Las
Vegas, Nev.
Utah Apex Uranium Co.
18

(letter of notification) 3,000,000 shares of capi¬
(par three cents). Price—Six cents per share.
Proceeds—For exploration and development
expenses.
Office—430 Judge Bldg., Salt Lake
City, Utah. Under¬

tal stock

writer—Mid-Continent Securities, Inc.,

same city.
Corp., Las Vegas, Nev.
Aug. 20 (letter of notification) 10,000,000 shares of
capi¬

Utah Uranium

tal stock (par 1 cent).
Price — Three cents per share.
Proceeds—For exploration and development
expenses.

Office—1818 Beverly Way, Las
Vegas, Nev.
—First Western

Securities,

same

Underwriter

city.

Vada

Uranium Corp., Ely, Nev.
(letter of notification) 2,000,000 shares of com¬
mon stock
(par one cent). Price — 15 cents per share.
Proceeds—For mining expenses.
Office—280 Aultman

Jan.

'

Woodland Oil & Gas

Utaco

Oct.

Underwriter—In¬

rection

Colo.

Oct.

investment.

Managers Inc., New York, which is under the di¬
of its President, Pierre A.
DuVal, of DuVal's

come

17

St., Ely, Nev.
River, Mass.

Underwriter—Bristol Securities Co., Fall

stock
For

(par

10

cents).

Price—$1

per

share.

common

Proceeds—

equipment, drilling expenses and working capital.
Broadway, New York, N. Y. Underwriter—
Co., Inc., same address.

World Uranium Mining Corp.
July 21 (letter of notification) 9,996,000 shares of

com¬

stock

mon

(par one cent).
Price — Three cents pel
Proceeds—For exploration and development ex¬

Office—323

penses.

Utah.

Newhouse

Underwriter—P. G.

bldg., Salt Lake City,
Christopulos & Co., same city.

Wynn Pharmacal Corp.
Dec.

23

(letter of notification)
stock

common

Proceeds

(par

com¬

Pro¬
ceeds—For expenses incident to
mining operations. Ad¬
dress—P. O. Box 289,
Wallace, Idaho. Underwriter—Alden J. Teske, d/b/a Wallace
Brokerage Co., Samuels

10

85,000 shares of class B

Price—$2.50

cents).

per

share.
sale of

For production, development and
products, working capital and other corpo¬
rate purposes.
Office—5119 West Stiles St., Philadel¬
phia, Pa. Underwriter—Charles A. Taggart & Co., same
city.
—

company's

Wyoming Uranium Corp., Salt Lake City, Utah
Aug. 23 (letter of notification) 9,166,667 shares of com¬
stock (par 1 cent).
Price—Three cents per share
Proceeds—For exploration and development expenses

mon

Zenith Uranium & Mining Corp.
July 12 (letter of notification) 300,000 shares of common
stock (par one cent).
Price—$1 per share. Proceeds—
For mining operations.
Underwriter—Sheehan & Co^
Boston, Mass.

—To purchase shares of
Wilson-Jones Co. stock.
—209 So. Jefferson

St.,

None.

Chicago

6,

111.

Office

Underwriter—

it Ward Leonard Electric Co.
Jan.

25

stock

ployes.

(letter of notification) 5,000 shares of
(par $4) to be offered for
subscription

Price—$11

corporate

purposes.

per

share.

Office—115

South, Mount Vernon, N. Y.




Proceeds—For

MacQuesten

common

by

em¬

general

Parkway,
Underwriter—None.

Baltimore & Ohio RR.
Jan.

19

ated

Dec.
sell

30

it

was

sought ICC exemption from competi¬
to $345,000,000 of new securities. Pro¬

company

bidding of

ceeds—For
sales

up

refunding.

Underwriter—Previous

handled

were

Jan. 27 it

was

shares of

common

by

Kuhn,

Loeb

negoti¬
Co., New

&

Co.

stock js planned
(including part,for
selling stockholders account). Underwriter—Paine, Web¬
ber, Jackson & Curtis. Offering—Expected late in Feb¬
ruary.

it Bishop Oil Co.
Jan.
a

31

plans to issue

and

—To

repay bank loans and for construction program.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Morgan

Stanley & Co.; Union Securities Corp., Equitable Securi¬
ties Corp. and Drexel & Co. (jointly); The First Boston
Corp.; Lehman Brothers; Harriman Ripley & Co. Inc.;
Blyth & Co., Inc. and Kidder, Peabody & Co. (jointly).
up

to 11 a..m. (EST)

May 31. Registration—Scheduled for May 4.

that directors have approved
stock

common

(par $2)

stockholders of record March 14 on the basis
shares for each five shares
held; rights to
expire on March 30. Underwriter—To be named later. f
of

•

two

new

Calumet &

Feb.

1

Hecla, Inc.

stockholders

authorized

issue

approved

of

100,000

a
proposal creating an
shares of cumulative pre-

ferred

(

stock (no par), of which it is
planned to offer'
publicly 50,000 shares (expected to carry a $4.75 divi¬

dend).

Underwriter—White, Weld & Co., New York.

Central
Dec.

Maine

Power Co.

31, W. F. Wyman, President, stated that company

plans to issue

and

sell

some additional common
stock,
$10 (probably to stockholders). Proceeds—For con¬
Underwriter—May be determined by
competitive bidding. Probable bidders: The First Boston
Corp. and Coffin & Burr, Inc.
(jointly); Harriman

par

struction program.

Ripley & Co. Inc.; Blyth & Co., inc. and Kidder, Peabody & Co. (jointly).
•

Central

Jan.

25

National

Bank of Cleveland

stockholders

were
given the right to subscribe
171,875 additional shares of capital stock (par $16)
on
basis
of
one
new
share for approximately four
shares held of record Jan.
19; with rights to expire on
Feb. 16. Price—$32.50
per share. Proceeds—To increase
capital and surplus.
Underwriter
McDonald & Co.,

for

—

Cleveland, Ohio.
Chesapeake & Ohio Ry.
Sept. 29 it was reported company

plans to issue and
$40,000,000 of new bonds. Proceeds—To refund ita
outstanding $37,851,000 3%% bonds and $2,441,000 4%
sell

bonds. Underwriter—May be determined
by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Blyth & Co., Inc.
•
Chicago & Eastern Illinois RR. -Jan. 25 the company's offer of
$15,336,480 of 5%
debentures due Jan. 1, 2054, in

income

exchange, par for par,
outstanding 383,412 shares of class A stock (par
$40) was extended to expire on March 1, 1955. City
National Bank & Trust Co., Chicago,
111., and City Bank
Farmers Trust Co., New York, are
exchange agents.
Chicago, Rock Island & Pacific RR.
11, J. D. Farrington, President, announced that the

Jan.

directors have authorized the issue and sale of not more
than $65,000,000 of 40-year income debentures. Proceeds
—To redeem its outstanding preferred stock
(about

620,by competitive bidding,
bidders may include: Halsey, Stuart & Co.
Inc.; Morgan
Stanley & Co.; Lehman Brothers, Lazard Freres & Co.
and Bear, Stearns & Co. (jointly).
Exemption from the
000

shares).

competitive
holders

of

Underwriters—If

bidding rule
preferred

stock

common

on

asked

was

stock

on

convert

Jan.

their

share-for-share basis

a

20.

If

shares

all

into

there will

be

debenture sale.

no

Citizens National Trust &
Los

Savings Bank of

Angeles

Jan. 14 stockholders of record Jan. 11 were
given the
rights to subscribe for 200,000 additional shares of new
common stock (par $10) on the basis of two new shares
for

each five shares held; rights to expire on Feb. 14.
Price—$33 per share. Proceeds—To increase capital and
surplus. Underwriter—Blyth & Co., Inc., Los Angeles,
Calif.
I
.

it Commonwealth
Jan.

Edison Co.

24, Willis Gale, Chairman, announced it should be
company undertakes its next financing.

Fall

before the

Proceeds—For
cost

construction, which, it is estimated,
$125,000,0000 in 1955. Underwriters—

new

about

last

The

wrere

First

Boston

Corp.

it Crampton Manufacturing Co.

$15,000,000 first mortgage bonds due 1985. Proceeds

Bids—Expected to be received

(3/16)

announced

was

common

31

issue

company

it

plan to offer 153,236 shares of

to

Jan.

(5/31)

announced

reported that early registration of 100,000

equity financing
and Glore, Forgan & Co.

Prospective Offerings
Power

System, Boston, Mass.
some financing may result

reported that

acquisition

writer—Van Alstyne, Noel &
Co., New York.

For

Alabama

was

the

of control of this company by
Richard S. Robie for
$8,000,000, but details are not yet
available. Office—Statler
Hotel, Boston, Mass. Under¬

will

Hotel, Wallace, Idaho.

★ W J Management Co., Chicago, III.
Jan. 19 (letter of
notification) 5,000 shares of common
stock (par
$10) to be available only to
employees of
Wilson-Jones Co. and its subsidiaries
(each employee
limited to 250
shares). Price—$14 per share. Proceeds

Rent-A-Car
it

for the

Underwriter—James E. Reed Co., Salt Lake City, Utah

Vulcan-Uranium Mines, Inc., Wallace, Idaho
Oct. 15 (letter of
notification) 1,500,000 shares of
mon stock.
Price—At par (five cents per share).

from

Office—42

share.

Co.,

it Barry Controls, Inc.

Dallas, Tex.
12-year 6% debentures

(par 50 cents) to be offered in units of
ture

&

Building, Bradenton, Fla.

West Coast Pipe Line Co.,
Nov. 20, 1952 filed $29,000,000

amendment.

Office—

Jan.
com¬

14

York.

and for working capital.

company;

Uranium

Discovery & Development Co.,
Wallace, Idaho
16 (letter of
notification) 1,000,000 shares of capi¬

Avis
Jan.

subsidiary

—

Office—908 Kearns Bldg., Salt Lake
City, Utah.
writer—Austin B. Smith Brokerage

Underwriter—Courts

tive

Jan.

covered

Atlantic Steel Co., Atlanta, Ga. (3/7)
was reported
company plans to issue and sell
200,000 shares of common stock (par $5).
Proceeds—
For capital expenditures.

note; for modernization and improve¬
ment of hotels; to acquire an
equity in a fourth hotel;
to organize a wholly-owned hotel, services and
supply
a

due Dec.

(2/23)

®

Jan. 24 it

Atlanta, Ga.

it West Coast Mortgage & Investment Co.
25 (letter of notification)
60,000 shares of com¬
mon stock
(no par). Price—$5 per share. Proceeds—To

—

,, ,

stock

Wenga Copper Mines, Inc., N. Y.
18 (Regulation
"D") 900,000 shares of common
(par five cents). Price—30 cents per share. Pro¬
ceeds—For general corporate purposes.
UnderwriterWillis E. Burnside & Co., New York.

Jan.

Oct. 5

Canada

common

Nov.

Ucolo Uranium Co.y Salt Lake City, Utah
Sept. 13 (letter of notification) 2,800,000 shares of com¬
mon stock (par one
cent). Price — 10 cents per share.
Proceeds—For exploration and development costs. Of¬

v

Ltd., Toronto,

Securities Corp., New York.

stock

writer—James E. Reed Co., same city.

Mines,

(par 10 cents). Price—$1 per share. Proceeds—For gen¬
eral corporate purposes.
Underwriter—James Anthony

—Western Securities

mon

Uranium

Dec. 30 (regulation "D") 300,000 shares of

Trans-Continental

Oct.

Webster

Under¬

writer—Lewellen-Bybee, Inc., Washington, D. C.

41

stock.

it

was

about

reported

$1,750,000

company

of

Underwriters—For

Inc., New York.
troit, Mich.

bonds

may

and

bonds:

P.

be

about
W.

planning to
$250,000

Brooks

&

of

Co.,

For stock: Baker, Simonds & Co., De¬

it Erie RR.
Jan.

28 company asked ICC for authority to issue
$40,288,200 of 5% income debentures due Jan. 1, 2020, which
are to be offered in exchange for 402,882 shares of out¬

standing series

A

preferred stock

on

basis of

$100 of

debentures for each share of stock.

on

Continued

on

page

42

The Commercial and Financial Chronicle

42

Continued, from page

it

Minneapolis, Minn.

First Bank Stock Corp.,

corporation plans to offer 361,capital stock to its stockholders
on
basis of one new share for each eight shades held.
Price—To be determined at time of offering (stockhold¬
922 additional shares of

meeting will be held Feb. 16 to approve issue).

ers

Pro¬

affiliated banks.

Power

stock

on

l-for-10

a

writers:

in

basis

Peabody

Kidder,

May

&

June 1955. Under¬

or

Co.

and

Merrill

Lynch,

Pierce, Fenner & Beane.

Dec.

it

30

(5/10)

Jan.

31

it

announced

was

Underwriter—To be determined by competitive
Probable bidders: Halsey, Stuart & Co. Inc.;
The First Boston Corp.; Lehman Brothers; Union Securi¬
ties
Corp. and Equitable Securities Corp.
(jointly);
Morgan Stanley & Co.; Kuhn, Loeb & Co.; Shields & Co.
and Salomon Bros. & Hutzler (jointly); Harriman Ripley
& Co. Inc.; Blyth & Co., Inc. and Kidder, Peabody & Co.
(jointly). Bids—Expected to be received up to 11 a.m.
gram.

bidding.

(EST)

May 10. Registration—Scheduled for April 13.

on

1955.

Jan. 26 it

Jan. 26 it

announced stockholders will vote Feb. 15

was

increasing authorized common stock (par $2) from
400,000 shares (360,000 shares outstanding) to 750,000
on

shares, in order to have additional shares which would
be available for acquisition of any business, increased
working capital, plant expansion or exchange of shares
in other companies.
Underwriter — Previous financing

Hornblower & Weeks and associates.

handled by

Jan. 31

it

reported early registration is expected of

was

100,000 to 125,000 shares of common stock.
writer—The First Boston Corp., New York.

the

future.

near

Proceeds—For

handled previous
Hanover

Jan. 12 it

Insurance

& Co., New York,

Co.

announced stockholders will vote March 7

authorizing an offering to stockholders during the
latter part of March of
100,000 additional shares of
capital stock on the basis of one new share for each

To

Price—To be named later. Proceeds—

activities in

expand

fields.

the casualty and multiple line

Underwriters—The First Boston Corp. and R. W.

Holly Corp.,

ceeds—To

was

Keith

17,

the

McHugh,

capital

more

announced that
than $100,000,000

17

sell

Gas

only, 15,000 shares of 5V2% cumulative preferred stock
(par $50). Underwriter—Central Republic Co. (Inc.),

Chicago, 111.

it

reported company plans to issue and sell

was

$10,000,000 of first mortgage bonds due 1985. Proceeds—
For construction program. Underwriter — To be deter¬
mined by competitive bidding. Probable bidders: Halsey,
Stuart & Co. Inc.; Glore, Forgan & CoP and Goldman,
Sachs & Co. (jointly); Blyth & Co., Inc. and The First
Boston Corp. (jointly); Union Securities Corp. and Stone
& Webster Securities Corp. (jointly); Lehman Brothers
and

Bear, Stearns

& Co.

(jointly); Kidder, Peabody &

Co. and Merrill Lynch, Pierce, Fenner & Beane

(jointly);

Kuhn, Loeb & Co. and A. C. Allyn & Co. Inc. (jointly).
Bids—Expected March 15.
Kansas Gas & Electric Co.

it

17

stock

was

Dec.

will

(par $5)

shares

420,000

be offered

soon

later.

be named

Eastern Transmission

Texas
Jan.

23

it

company plans sale of 60,000
(par $100). Proceeds—For new
construction. Underwriter—To be determined by com¬
petitive bidding. Probable bidders: Lehman Brothers;
Blyth & Co. Inc.; Union Securities Corp.; White, Weld &
was

reported

Co. and Shields & Co.

(jointly); Kidder, Peabody & Co.
Lynch, Pierce, Fenner & Beane (jointly).
Bids—Tentatively expected March 15.
and

Merrill

it Keystone Wholesale Hardware Co., Atlanta,

Proceeds—To

of

common

it

12,

Jan. 27

it

date

offer

to

stated that the company

was

additional

shares for

sale

plans at

a

later

nationally.

An
offering of 16,666 shares of common stock is presently
being made to residents of Georgia only at $3 per share.
Office—517 Stephens St., S.W.,
Atlanta, Ga.

Majestic Auto Club, Inc.
Aug. 25 it

was

announced company plans to offer

500,000 shares (par five cents) to the motorist and
general
public shortly after completion of the current offering
of 100,000 shares to service station owners and
operators.
Office—Room 717, 141 Broadway, New York
6, N. Y.




Corp.

was

Transcontinental

Price—
Publishing
Underwriter—East¬
public.

to

The

Nov.

Post

Northern

Indiana

Public

Service

ferred

and/or

Republic

Central

stock).

common

Co.

Blyth &
Merrill Lynch, Pierce, Fenner & Beane.

Co.,

Inc.;

the

Jan.

19

first

and

directors

be

To

sale

new

Inc.

(jointly);

construction.

* Trav-Ler Radio Corp. (3/16-17)
27 it was reported company is understood to be
planning the issue and sale of about $1,500,000 deben¬
tures (with warrants).
Underwriter—Straus, Blosser &
Jan.

and

&

Co.,

Inc.

Union

.

Electric Co. of

it

24

Jan.

Underwriter—

by

Blyth

for 1955 and replacement of bank

of

competitive bidding.
bidders: The First Boston Corp. and Halsey,
Co.

Pipe Line Corp.

White, Weld & Co. and Stone & Webster Securities Corp.

$50,000,000
Proceeds—To re¬

refunding mortgage bonds.

determined

Gas

Walker, President, announced that the

McDowell, Chicago, 111.
the

authorized

tire bank loans and for

P.

borrowings made in 1954 wil require financing during
1955 of about $85,000,000.
It is planned to offer publicly
in either March or April $10,000,000 to $12,000,000 of
preferred stock. About $60,0UU,U0U of bonas wu oe sold
later this year (may be done privately). Underwriter—

Underwriters—Probably

(Inc.),

Tom

24

construction program

Co.

reported

was

Missouri

company

expects to sell

about

first mortgage bonds late in 1955.
repay bank loans and for new construc¬
tion.
Underwriter
To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;

$30,000,000

Probable

30-year

Proceeds—To

Stuart &

—

Bids—Expected

early in March.

Blyth & Co., Inc. and Union Securities Corp.
Pacific Northwest

Pipe Line Corp.

planned to offer publicly $16,800,000 of 6% interim notes
1, 1956 (convertible into preferred stock at ma¬
turity) and 280,000 shares of common stock (par $1) in
units of $60 principal amount of notes and 10 shares of
stock. Price—$70 per unit. Proceeds—Together with other
a

1,400-mile natural

pipeline between Ingancio, Colo., and Sumas, Wash.,
the Canadian border. In addition, 1,659,200 shares
stock

would

offered

be

for

subscription

gas
on

of
by

stockholders who already own 700,000 shares.
Underwriter—White, Weld & Co.; Kidder, Peabody &
Co.; Dominion Securities Corp.; Union Securities Corp.
Offering — Expected to be completed in first half of
February, 1955.

First

31

offer

it

of

was

reported

company

may

be

&

United

Sept.

Dye & Chemical Corp.
directors authorized an offering

8

stockholders of
*

one

between

$4,000,000 to $5,000,000 convertible
(probably first to stockholders). Underwri¬
ter—Kuhn, Loeb & Co., New York.

additional

common

stock

share for each five shares held

new

to

at

common

the

(with

rate

an

of

over¬

subscription privilege).
ently outstanding.

About 150,000 shares are pres¬
Price—$9 per share. Underwriter—

None.

it Van Norman Co.
Jan.

27

it

was

announced

company

plans to offer to its

stockholders 124,667 shares of common stock on a l-for-3

basis, plus a warrant to buy an additional share over a
10-year period.
Underwriter—Paine, Webber, Jackson

Offering—Expected before April 1.

West Texas Utilities Co.

considering

debentures

Boston

Stearns & Co.

20, C. R. Williams, President, announced that it is

funds, to finance construction of

(jointly);
Corp.; Lehman Brothers and Bear,
(jointly); White, Weld & Co. and Shields
Co. (jointly).

The

Jan.
5
it
Was
reported
company
plans the sale of
$7,000,000 30-year first mortgage bonds (probably in
May, 1955). Proceeds—To retire bank loans and for

construction. Underwriter—To be determined by
competitive bidding. Probable bidders; Halsey, Stuart &
Co. Inc.; Blyth & Co., Inc. and Salomon Bros. & Hutzler;
Merrill Lynch, Pierce, Fenner & Beane; Equitable Se¬
curities Corp.; Glore, Forgan & Co.; Kuhn, Loeb & Co.
new

Public

sell

Service

11 it

Nov.

Co.

of

Oklahoma

reported that company plans to Issue and
shares of new preferred stock (par $100).

was

100,000

Underwriter—To be determined by competitive bidding.
Probable bidders:
Harriman Ripley
& Co. Inc. and
Central

Republic Co. Inc. (jointly); Smith, Barney &
Co.; Kuhn, Loeb & Co.; Glore. Forgan & Co. Offering—
Expected in April or May, 1955.

25

National

stockholders of

Bank, Boston

record

Jan.

25

were

given the

right to subscribe for 37,500 additional shares of capital
stock (par $10) on the basis of one new share for each
5 14/15 shares held; rights to expire on Feb. 9. Price—
$32.50

plus.

share. Proceeds—To increase capital and sur¬
Underwriter—The First Boston Cor.p., New York.
per

Sheraton
Dec.

13

it

Corp.

was

of America

(2/28-3/4)

reported company-may be planning sale

of about $10,000,000 of debentures.

Ga.

or

reported that company plans to issue
and
sell this year $20,000,000 of preferred stock
and
$15,000,000 of common stock. Underwriter—Dillon, Read
& Co. Inc., New York.

Dillon & Co., New York.

man,

Jan.

shares of preferred stock

in April

Ripley & Co. Inc. Offering—Expected

May, 1955.

Co.

announced

Rockland-Atlas

(3/15)

construe-!

f

Dec.

Jan.

Dec. 23 it

is planning to issue
preferred stock (par

company

cumulative

of

Lynch, Pierce, Fenner & Beane and Union
Corp. (jointly); W. C. Langley & Co.; Harri-f

it Pan American Sulphur Co.

(3/15)

reported

was

$6,600,000

& Curtis.

Kansas Gas & Electric Co.

William R. Staats & Co. and First

'

Kidder, Peabody & Co. (jointly); Lehman Brothers;

man

improvement program which will cost ap¬
proximately $200,000,000. Underwriter—For and bonds,
be
determined
by competitive bidding.
Probable
bidders: Morgan Stanley & Co.; Halsey, Stuart & Co. Inc.
Penn

plans to issue addi¬
Underwriters—

1955.

in

Southwestern Gas & Electric Co.

and

and

North

company

early

Securities

to

■>

stock

Xq pauiuuajap aq oj,—sjajuMiapufi 'uiejgojd uoi^!
petitive bididng. Probable bidders: White, Weld & Co.

to aid in carrying out its expan¬

money

j
Co.

Power

it was announced

common

Merrill

President,

Stanley & Co.; Kidder, Pea-;

-oloj

Co.

will have to raise

company

new

sion

S.

&

Co.

&

$100). Proceeds—To prepay bank loans and for

Underwriter

present

reported company plans to sell in Illinois

-

and

common

it Illinois Central Telephone Co.
it

borrowings.

temporary

York Telephone

New
Jan.

12

Jan.

due May

New York

Sept. 9 S. B. Harris, Jr., President, stated that prelimin¬
ary financing by Holly Uranium Corp. has been arranged
to be followed by a public offering early in 1955 after
which Holly Corp. plans to distribute part of its hold¬
ings of Holly Uranium Corp. stock to its stockholders.
Underwriter—Barrett Herrick & Co., Inc., New York.

Jan. 26

repay

—None.

Dec.

Pressprich & Co., both of New York.
•

,

1, next, 511,205 addi¬
(par $100) on a l-for-5

stock

Pacific Gas & Electric Co.

on

four shares held.

capital

American Telephone & Telegraph Co., its parent,
about 69% of presently outstanding shares.
Pro¬

owns

financing.

Fire

was

Under¬

expansion.

writer—Eisele & King, Libaire, Stout

bid¬

until Oct. 12.

California Co.

to offer to

March

record

of

of

Telegraph Co.

company proposes

12, D. H. Mitchell, President, announced that the
company
plans to raise approximately $12,000,000 of
new
money (which may be done through sale of pre¬

Executive Vice-President, an¬
company will have another stock issue

nounced that the

Nov.

Jan.

Alberty,

D. L.

17,

basis.

Under¬

Gulf Cities Gas Corp.
Jan.

shares

Blyth

Witter

Dean

Nevada

Southern

tional

Telephone &

announced

was

stockholders

its

(jointly);

and

Brothers; Morgan

Not expected

Offer¬

Co., Inc., New York.

Co., publisher of The Boston Post.

from

companies.

competitive

body & Co., and Merrill Lynch, Pierce, Fenner & Beane.
Bids—Tentatively scheduled for Nov. 9. Registration—

next week.

England

19 it

tional

Co.

Hornblower & Weeks,

New

Oct.

To

ic Glatfelter Pulp Wood Co.

&

Co.

&

Lehman

Inc.

reported company plans to issue and sell

was

Wertheim
Stearns

$300,000 of 6% debentures due 1970. Price—At par. Pro¬
ceeds—For new developments and working capital. Un¬

of

Giddings & Lewis Machine Tool Co.

by

Co., Inc., Bear,
(jointly); Union
Securities Corp. and Equitable Securities Corp. (jointly);

company

it Missouri Research Laboratories,

plans to issue and.

company

ceeds—To

determined

be

burg, Thalman & Co., Carl M. Loeb, Rhoades & Co. and

may be planning to
$15,000,000 senior secu¬
Underwriters—Probably Blyth & Co., Inc.

reported

was

ing—Expected

$12,000,000 of first mortgage bonds due 1985. Pro¬
retire bank loans and for construction pro¬

sell

stock of subsidiary

additional

in

ding. Probable bidders: The First Boston Corp., Laden-

derwriter—P. W. Brooks &

Georgia Power Co.

(par $5). Proceeds—To repay bank loans and for

investment

and Alex. Brown & Sons.

Dec. 31 it was reported company plans to offer to its
stockholders about 232,000 additional shares of common

plans to issue and

company

public 500,000 additional shares of common

Underwriter—To

it Minnesota & Ontario Paper Co.

rities in

Corp.

Thursday, February 3, 1955

(11/9)

announced

was

the

to

stock

issue and sell from $12,000,000 to

Underwriter—Blyth & Co., Inc., New York.
Florida

additional common stock. Pro¬
ceeds—To retire 213,748 outstanding shares of $2.10 prefererd stocl* at $52.50 per share.
Underwriter—Merrill
Lynch, Pierce, Fenner & Beane, New York.

it

30

sell

holders about $12,000,000

Dec. 21 it was announced

ceeds—To increase capital structures of

Dec.

reported company may offer to its stock¬

was

Co.

Southern

it Maryland Casualty Co.

41

Jan. 31

in

...

(6jJ8)

Underwriter—Paine,
Webber, Jackson & Curtis, Boston, Mass.
it South Carolina Electric & Gas Co.
1 directors approved a proposed offering to stock¬
holders of 210,053 additional shares of common stock
(par $4.50) on the basis of one new share for 15 shares
held. Proceeds—For construction program. Underwriter
—Kidder, Peabody & Co., New York.
Feb.

South Georgia Natural Gas Co.
Jan. 18 it

(Jan.

27)

(2/16)

was

reported company plans registration today

of

150,000 shares of common stock. Price—
share. Proceeds — For new construction.

About $6 per

Underwriter—Shields &

Co., New York.

and Lehman Brothers

(jointly); Kidder, Peabody & Co.;

The First Boston Corp.
Western Auto
Jan.

12 it

was

will

vote

on

Supply Co.

(Mo.)

announced that stockholders

on

March

15

approving a proposal to create an issue of
100,000 shares of preferred stock and $5,000,000 of
bonded debt, and on increasing the authorized common
stock

from

company

of

1,335,000 shares to 2,500,000 shares.
The
raise about $10,000,000 through then sale

may

$5,000,000

preferred stock and $5,000,000 bondg to
purchase of 140 retail stores owneck by
Gamble-Skogmo, Inc. Underwriter — Merrill Lynch,

finance

the

Pierce Fenner & Beane, New

York.

Westpan Hydrocarbon Co. (4/15)
Dec. 11 it was reported Sinclair Oil Corp. will ask for
bids for 384,861 shares of Westpan stock about April 15,
1955, if it has not been able to dispose of these holdings
before

that date.

Underwriter—Union

Securities

Corp.

New York, underwrote recent sale of Sinclair's holdings
of Colorado Interstate Gas Co. White, Weld & Co., New

York, may be included among the bidders.

it Zapata Off-Shore Co.
was reported early registration is expected of
315,000 shares of common stock of this company (a sub¬
sidiary of Zapata Petroleum Co.). Underwriter—Under¬
wood, Neuhaus & Co., Houston, Tex.
Jan. 27 it

Volume 181

-

Number 5400

..The Commercial and Financial Chronicle

.

patented

Allied Stores Slock

properties

(Feb.

3)

is

shares of
Stores

Corp.,

department
nual

300,000

stock of Allied

America's
store

75

un¬

today

offering

common

operating

an

which

group

If all of the securities being of¬
are sold 1,619,800 shares will

with

an¬

an

be

outstanding.

Allied

from the

stock

mon

sale of

will

be

the

added

the

funds of the company to
be available for general corporate
While

purposes.

cation

of

such

amounts

net

which

specific allo¬

no

proceeds

that

the

years,

will expend approx¬
imately $22,500,000 for the fixturing of, and provision of working
capital for, proposed stores and
that additional amounts will be
required for refixturing and im¬

provement of existing store prem¬
ises.
The company contemplates
such

expenditures

from available

will

to

The

Financial

be

Co., Van Nuys Building.

Sickel

was

previously

GREEN

stores.

new

Board

BAY

$50.00

the
Debentures

of

WESTERN

&

Directors

with

and

The stores

The

are

W.

W.

New

York, New

York,

AMERICAN

COX,
31,

METER

Phila.

COMPANY

Allied

-

has

pany, payable
of
record at

of fully
coordinated
shopping centers in which a ma¬
takes

department store

leading

a

position.

Chronicle)

Financial

shire Fine

been

declared

on

the

Capital Stock of the Com¬
March 15, 1955, to stockholders
the

close

The

share

of

B.

a

dividend of 25

January 27,

G.

to

President.

Union Carbide

STAUFFER CHEMICAL
COMPANY

business

February

1955

The Board of Directors has declared

15#

common

share

to stockholders of record at the

Payable March 1, 1 955

to

stockholders of record

KENNETH II.

dividend of 323^< per share on the
stock payable March 1,1955

of business

per

Donaldson Co.

L.

AMERICAN

&

FOREIGN

TWO RECTOR STREET,

Christian deDampierre

Record date,

February 17, 1955

Treasurer

The United Gas
January 27, 1955

Improvement

NEW

dividend

YORK

NATIONAL DISTILLERS

i

COMMON

quarterly dividend of 50c per
share on the Common Stock, par
value $13.50 per share, has been
declared payable March 31,

PACIFIC

FINANCE CORPORATION

DIVIDEND
CORPORATION

held

meeting

this

1955

Company,

A

regular quarterly divi¬
of 50 cents per share
common stock
($10
par value) payable Mar. 1,

NOTICE

DIVIDEND

dend

1955, to the stockholders of record Febru¬
ary

10, 1955.

H

w

BALGOOYENi

clared

Vice President and Secretary

January 28, 1955

of

Board

The

quarterly

a

25c per

share

Common
March

Directors

on

of

payable

1955,

2,

dividend

on

to

the

1955,

the outstanding

on

Stock,

of record

de¬

has

to

record
was

on

stockholders

on

stockholders

Johns

of

February 15, 1955,
by the Board

declared

of Directors

stockholders

to

being erected
in

terests

Pa.,
and
The company also

has entered into

be

to

in¬

expects to

or

en¬

leases for store buildings
in Cincinnati,
O.,

erected

and mid-Long

Island, N. Y. areas.
major store under construction

A
in

Miami, Fla. is under lease to

Allied and is expected to be

for occupancy by early
Net

the

sales

nine

1954

the

months

Hopkins, Treasurer

Philadelphia, January 25, 1955

Jan. 26,1955.

February 11, 1 955.

PAUL

YALE &TOWNE

C. JAMESON
b. c. Reynolds,

January 27, 1955

Secretary

Treasurer

DECLARES 268th DIVIDEND

50i PER SHARE
AIRCRAFT

RADIO

O'okiep Copper Company

CORPORATION

company
ended Oct.

I

Boonton

New

I

Jersey

I
Dividend

No.

j

88

1

|

J

On January

1955,

26,

the

Direc-J

|
J

tors of Aircraft Radio Corporation
declared a dividend of twenty cents

I

of

I (20c)

I

|

j

j

per share

on

the

common

stock

I
I
|

j
24, 1955, to stockholders of record at
j
the close of business February 11,
j
the

Company,

payable

February

1955.

H. M. KINGSLAND, Secretary

j

terly

fifty cents (50$)

The

Board of Directors today declared a
of twelve shillings
per share on
Ordinary Shares of the Company pay¬
able March 2, 1955.
The Directors authorized the distribution
of the said dividend on March 11, 1955 to
dividend

THE TEXAS COMPANY

dividends

of

75#

on

March 7, 1955

of American shares issued

under the terms of the Deposit Agreement

The dividend will
amount
to approximately $1.67
per share,
subject, however, to any change which may
occur
in the rate of exchange for South
Africa funds prior to March 2, 1955. Union
of South Africa non-resident shareholders
tax at the rate of 7.2% will be deducted.
dated

June

24,

1946.

F, A. SCHKCK, Secretary.
New York,

A

regular quarterly dividend of

on

at

at the close of business

Mar. 17, 1955.

the close of

February 4, 1955.

F. DUNNING

The stock transfer books will

re¬

Executive Yice-President and

main open.

N. Y., February 2, 1955.

January 28, 1955

on

the

stock since 1947.

Vice President & Treasurer

THE

YALE & TOWNE

Cash dividends paid

Tarbell Mines Stock
H. J.

Cooney & Co., New York,
offering as a speculation an
issue of 599,760 shares of common

stock of Tarbell Mines Ltd. at 50
cents per share (U. S. funds).

porated

Mines

on

June

Ltd.

7,

incor¬

was

1954

for

the

of acquiring, exploring
developing various gold and
uranium mining claims generally
and more particularly, to acquire
the
assets
and
undertaking of

purpose

on

River

Mines

included

claims

in

option

patented

the

to

Snare

Ltd.

unpatented

claims

Area

These

River

purchase

mining
River

19

stock of this

Corporation

has been declared

March 1,

payable

and

of business

1955.

February 15,

in

the

13

un¬




ness

March

March

1,

quarterly

15,

1955, to

per

the

1955.

on

payable

1, 1955,

business

to

stockholders of record

CLIFTON W.

24,

1955

per

Preferred Stock, 5.50% First Preferred Series
Preferred Stock, 4.75% Convertible Series

per

Preferred Stock,

the

Share

Common Stock

4.50% Convertible Series

$1.3754
$1.18 54
$1.12 54
.$0.35

March

\_7-

1955.

GREGG,

Vice-President and Treasurer
Feb. 2,

close of
Amount

Security

10, 1955, to stockholders of record at
close of business Feb.

at

February 4, 1955:

stock¬

dividend of $.60

Stock

Common

Secretary
January 27, 1955

on

share has been declared

C. Allan Fee,

un¬

$1.00

declared

holders of record at the close of busi¬

the

,

been

has

Company has declared
following quarterly dividends, all payable on

March

$4Cumulative Preferred Stock

A

at close

dividend of

quarterly

share

payable

1955 to stock¬

holders of record

area;

six

the
A

preferred

and

assets

The Board of Directors of the

the 5% cumula¬

tive convertible

Notice

January 26, 1955

A dividend of 62Vi £ per

share

Com?no?i andPreferred Dividend

N.Y.

PLAZA

are

Tarbell

NEW YORK 20,

30 ROCKEFELLER

TEXAS

EASTERN
SHREVEPORT,

LOUISIANA

CO

ineveryyear since 1899

INDUSTRIES

Cooney Offers

Secretary

mfg.

THE FUNTKOTE COMPANY

QCF

on

stockholders of record

has been declared this day,
payable on March 10,1955,lo stock¬

S. T. Crossland

Preferred Dividend No. 192

Marian

payable

April I, 1955, to

pany

holders of record

was

of past earnings,

seventy-five cents (75$) per share
on the Capital Stock of the Com¬

business

share

the Board

of Directors out

Consecutive Dividend

the holders of record at the close of business

INCORPORATED

H. J.

Snare

declared by

-210th-

share

a

regularly paid

per

the

$360,549,572 and net
were
$5,761,631. Quar¬

been

common

an

dividend
No. 268 of

Dividend No. ,'{.'1

By Order of the Board of Directors,

for
31,

On Jan. 27, 1955,

Limited

were

earnings
have

of

ready
1956.

record

The transfer books will not close.

S.

Levittown,

Houston, Tex.
ter into

by outside

of

February 28, 1955.
A quarterly dividend of $1.0614
per share on the 4 K % Preferred
Stock has been declared payable
April 1, 1955 to stockholders of
record February 28, 1955.

DIVIDEND NOTICE

day,

declared a
quarterly dividend of 15 cents per share on
the Common Stock for payment March 10,
a

notice

A

N.Y

6.

The Board of Directors of the

shopping
center developments, store build¬
ings to be leased to the company

are

Secretary

close

February 15, 1955

POWER

COMPANY INC.

other

In

HANNAN,

Vice-President and

ASHBY, Secretary.

'

its

at

the close of business Feb. 4, 1955.

DIVIDEND NOTICE

-

dividend

of Fifty cents
share on the outstanding
capital stock of this Corporation
has been declared, payable Mar. 2,

(50(f)

QUARTERLY CASH DIVIDEND
a

cash

Company

Marsh Co., and is partici¬
pating in the development of a
shopping center near Minneapolis,
for

FOX, Jr.

Treasurer

Blooinfield, N. J.
January 25, 1955

Jordan

branch

18,

stockholders of record

ucc

CORPORATION

thers, New York City department
stores in the Allied group.
The
company
also
is
developing a
shopping center north of Boston,
Mass., for a branch of Allied's

a

common

CHACE, JR.

1955.

460 West 34th St., N.Y. 1, N.Y.

major branch store of Stern Bro¬

for

on

M. J.

cents

share on the Common Stock,
payable March 1, 1955 to stockhold¬
ers of record February 8, 1955.
per

A

mus,

Minn,

has

February 7, 1955.

Spinning Associates, Inc.

has declared

MALCOM

NOTICES

a

THE

large shopping center in ParaN. J., which will contain a

a

The

6

payable February

1955,

PASADENA, Calif. —
Henry O. Topf, Jr. is now with
Blalack & Co., 700 V2 Brent Ave.

at present is developing

company

to

No.

of Directors

regular semi-annual
Twenty-five cents

1955.

at

has pioneered in the de¬

a

(Special

stock

inC.

associates

spinning

The Board of Directors of the Berk¬

PRODUCTS

velopment

jor branch of

($0.25)

Co., Park Building.

SOUTH

a

dividend of

2, Pa., Jan. 27, 1955.

quarterly
dividend
of
Fifty Cents ($.50) per share

at

its customers.

are

declared

a

STREET

RACE

A

least 10% of the households in the

United States

The Board

CLEVELAND, Ohio — Paul J.
Abel has joined the staff of L. A.

Secretary.
1955

January

1513

28,

that

CORPORATION

NOTICES

Chronicle)

Incorporated

specialty stores.

estimates

Financial

^

•

DIVIDEND

Notice of

located in 24 states.

company

C~~"/

Beane, R. J. Reynolds Building.

declared

payable
on
Class
"A"
(Payment No. 59), and a dividend
of
$5.00 to be
payable on the capital stock,
out of net earnings for the year 1954, payable
at
Room
No.
3400,
No.
20 Exchange
Place,
New York 5. New York, on and after February
23, 1955.
The dividend on the stock will be
paid to stockholders of record at the close of
business February 11,
1955.

^

three

The

*

AND CARBON CORPORATION
and

amount

W.

stores

to

NOTICES

RAILROAD

fixed

has

Of the 75 stores operated by

the
company, 32 are complete depart¬
ment stores, seven major branch
stores, 33 junior department

141

vin G. Pettit, Jr. is now with Mer¬
rill
Lynch,
Pierce,
Fenner
&

COMPANY
The

mortgage fi¬
nancing by Alstores Realty Corp.,
a
wholly-owned real estate sub¬
con¬

of

NOTICES

funds with¬

sidiary, will be required in

staff

)JLSLSLSLSLSLSULSLSUUL9JLSLSLSULSUSLSLSLS^

estate

nection with such

(Special

DIVIDEND

DIVIDEND

necessity of further equity
financing although substantial ad¬
real

the

Joins Blalack Staff

out the

ditional

to

DIVIDEND

43

WINSTON-SALEM, N. C.—Al-

DIVIDEND

Chronicle)

Reynolds & Co.

estimates

company

during the next three

that

Mr.

&

added

been

Daniel F. Rice and Company,
West Jackson Boulevard.

to

as

the company

made

Sutro

,

fine

ANGELES, Calif.—John H.
has
joined the staff of

Sickel

be expended
is presently

may

various purposes

possible,

LOS

com¬

to

general

for

(Special

proceeds to be received by

With Merrill Lynch

Thsl^JTna^cial Chronicle)

Caunter &

Joins Sutro Staff

priced at $54.75 per share.
Net

has

organization, fered

stores

to

Joins L. A. Caunter Co.

purposes.

largest

(Special

CHICAGO, 111.—Philip S. Hanna
this fi¬

nancing will be used to pay- for
exploration and development ex¬
penses and for general corporate

volume
currently in
$540,000,000 The stock is

of

Joins Daniel Rice Staff

located in the Yel-

are

sales

excess

-

the

in

lowknife Mining District.
The net proceeds from

Brothers heads

derwriting

claims

Prosperous Lake Area. All of said

Offered at $54.75
Lehman

mining

(639)

^Secretary

44

The Commercial and Financial Chronicle...

(640)

BUSINESS BUZZ

from the Nation's

JLJL

and

why

Call

it

is

just, possible

Senator

Douglas

Committee.

Professors

instead

So

M,

m

is

Economic

V/Mf

J||rl

Capital

doesn't,
that

this year refrained from calling
Mr. Humphrey before the Joint

Washington...
Behind-the-Scene Interpretations

Thursday, February 3, 1955

the

headmaster

set this

year's forum up on the
basis of "panels" as it is called,
of professors of economics.
It
just happens that for the most

WASHINGTON, D. C.—Come

Economic

to

enough

light-hearted

is

This

supposedly is engaged solemnly
•

in

performing

That is to write

task.

a report
Economic

President's

the

on

serious A

most

a

States

in the last several years

to fire

and the current occupant

White

than

bowling tournament.

one-man

Of

these,

all

three

committee's

only

however,

is

One

major.

are

mental

.

the

pure

'Between the Annual and the
Budget messages, the President
usually covers the waterfront
on all things economic such as
taxes, spending, etc., etc.
So
it

when

the

to

comes

nomic Report" the

"Eco¬

technique is

an

dressed

in

up

•.

Then

they

are

and

strange

a

Presi¬
dent's
aides
poke around all
the Federal agencies and hunt
such

investments
shares
for

in

a

the

the purpose

the

These messages all

in

President's

the

of

one

Economic

Council

Advisers,

write

the message, and

large

staff of what
whom

of

taking

the

Economic

as

might

prove

tage.

On the

probable

izing

to be

a

it is

that

they, by organ¬
worrying, keep the

the

President

always

committee
to

der

was

bert

and

his

Act

not

is

not

not

do

those who

just

all.

Once

subsidy
in

set

the

it

up,

interests

off,

theory to choke
it would be to move

as

mistress

into

the

What

planned

economy,

H.

gued

vehemently

Douglas

tax

policy

rich

and

a

was
fattening
grinding down

Ei¬

the

of

business

house

same

man's wife.
must if possible

average

goes

never

the

up

Disinter¬

down.

come

ment

Hence,
ness

fails

and

words

denial

in

the

self-

of

presence

helpless lamb does to

a

a

own

hardiest

find

himself

to

at

defend

a

his

(3) The

for

George Humphrey is

one

who

hungry

wit:

those

economists;

professors

of

eco¬

nation's

great
look¬

a

the

loss

Committee

universities have shabbier

ing

wit¬

position.

were

said.

Among

nomics

he

before

cower

conclusions

smoke, the preponderant,
affinity is toward pipe smok¬
ing.

judg¬

Also

no¬

who

vehemently.

the

to

his

own

verbal onslaughts of the Demo¬
cratic
Senator
from
Illinois,

to

as

only

by

his

fronts.

talks fast and

ested economic policy comes as

politician

all

on

natural

a

in

he

(2)

reputation in the Ivy
is
tremendous.
It
is

matched

go

the Economic Report, to

all

almost

He

university
economist
cannot answer a simple "yes,r
or
"no" to the simplest ques¬
tion, but acts as though he
made a living by getting paid
l/1000th of 1% per word for

with Professor Doug¬

confidence

debt.

(1) A

ac¬

las.

League

un¬

of uni¬

ways

Congressional Joint
on

in effect, Secretary
Humphrey of the
Treasury won his argument of

His

the

gained from the panel seminar
on
fiscal
policies
before
the

so

year

into

Certain

for

just happens that right
things don't appear to be
looking bad about the near-

last

with

Conclusions Learned

the

making

It

tivity,
George

acces¬

new

a

committee, but

where.

now

volume

most

Democratic

from

brief

the

cases

than

Grade 9 Federal

those

employee.

(This column is intended to

Act

the

by

Gil¬

(full) Em¬
Under

President

of

courses

a

We recommend

Forum

at

is

sup¬
carry

govern¬

policy which shall best

Nevertheless,
n o m

i

the

Joint

the market

W. L MAXSON CORPORATION

Eco-

Committee

frequently
had
one
minor, perhaps
useful function. It was a public
c

has

forum

aired

before
the

which

merits

could
of

be

CAPITAL STOCK
CAPITALIZATION: 330,397 shares Capital Stock

public

This is

a

real

GROWTH Company (Electronics)

economically

known

Office

of

as

the

Executive

$0.81

7,453,985

614,012

2.26

1952

15,923,380

526,494

1.82

1953

34,377,128

1,085,502

3.54

37,143,000

1,496,000

4.53

"The

street

from the White House.
If the President did not want

his staff going right
hand, this old build¬

ing, popularly known in this
Capital as "Old Monstrosity,"
probably would have been torn
down long ago, for it is an
eye¬




per share

$211,364

1951

Presi¬

dent," the old, ugly, "State, War
and
Navy Building" directly
West

Net Earnings

$3,229,917

1950

1954

Carl Marks

&

Co Inc.

•On

an

Increasing number of shares yearly due to stock dividends

Trading Market for Brokers and Dealers
FOREIGN

-

SECURITIES

SO BROAD STREET

TEL:

HANOVER 2-0050

1

v

•

SPECIALISTS

NEW YORK 4, N. Y.
'

TELETYPE NY 1-971

LERNER & GO.
10 Post Office

*
re¬

and may or may not coincide with
the "Chronicle's" own views.)

however,

1946.

of

Was

of

flect the "behind the scene" inter¬
pretation from the nation's Capital

•Earnings

establishment

to

the

bust.

sure

the

and

the

of

one

further

thereby

and

poor,

as

of

that

senhower Administration's 1954

Sales

Executive

keep

unbalanced

an

Dr. Senator
(D., 111.) ar¬

ure.

gov¬

too, the staff of the
CEA, together with that of the
Budget Bureau, occupy the

close

rates

familiar

the

on

a

Then

to

mone¬

government.

sion to the

Economic

seminar

Paul

worried.

across

the

had

define

to

govern¬

upon

a

versity economists, tried to findj
out from these gentlemen how
long and how far they would
go in plunging the government

Joint

Now Professor Douglas is a
tall, big, and commanding fig¬

bureau

and

is

it

practical

with

Committee

doesn't

economic

it
a

of

professors

the

of

master

term

finance

this

—

at

out

as

of

the for¬

written

Sullivan,

the

those

mental

gov¬

have discovered this

administer

to

mem¬

the
and

ernmental

or pro¬

posed to recommend and
out

toward

wolf.

parody

ment

ployment

-

increase

to

Joint Economic commit¬

work

oppose

and

of

membership

policy in the economic, fiscal,
monetary fields. Last year,
for instance, the present head¬
and

before the puppet show

do

tee

appropriate

public works,

but stems from

this

is supposed

at least most of

appear

Stems from Employment Act
This

a

as

payments.

to

appear
—or

Works,

political!
parties—without regard to any 5
sterile philosophy of economic
theory stratospherically re¬
moved from the very real mo¬
tivations of practical politics.

net advan¬

other hand,

Public

individually

operate

taxes and

economics

commit¬

to what is best for the

bers

Council

depression it

Although

juris¬

the

less, tax more or less,
or

governmental

to

as

so

ernmental

tunes of their separate

eco¬

Advisers,

leg¬

Banking, Finance,

whether

reduce

and

of the

or

gov¬

recommen¬

under

legislative

the

deflationary influence; in times

to

controls, ac¬
cording to the committee's idea

pulse every day of the week,
including Saturdays and Sun¬
days.

of

its

boom

the

hand

of

of

policy,"
is

fiscal

when

out

spending

on.

vide for

called

If the President left his

so

power

legislative
as

steam up

economic

nomic worrying to the

of

more

"statisticians,"
are
engaged in

national

of

diction

cides

"economists" and
all

All
come

A

very

a

getting

notion

the

ernment is supposed to increase

vestige of

no

through

carry

dations

and

of

theory

reduce

Appropriations,

which

are

In

have

economy

accept

"compensatory

Eco¬

of

tees, such

have

The Presi¬
no matter whom he may
toe at any given time, is always
right. He is following just the
proper recipe to bake the eco¬
nomic cake which will keep the
public prosperous and happy.
The message, however, is not
without practical value. It pro¬
vides for the upkeep, in effect,
common.

to

The committee has

islation.

report.

planned

substantive influence whatever.

initiate and

President Is Always Right

thing
dent,

the

the Economic
a

full em¬
expanding

an

almost universal com¬
the advocates of

an

taxes

without

and

consent,

come

President does.

Report is

of building up
the alleged economic character
of

By
mon

is

Report

This Report oil

union

Long distance, please!'

economy.

critical
of
everything that it can find that

insured—all

be

should

that

as

credit

the

on

economists

words

brilliant

the President,
with the Presi¬
Report. If

Committee

nomic

out obscure "economic" recom¬

mendations,

as

mostly

a

spending, and

In fact*
hardly guess what
they were talking about.
*
Rep. Wilbur Mills (D., Ark.)*
who

Economic

Joint

Finally,

theology.

ii

Congress
is
of
the
opposite
party, by equal coincidence, the

fascinating admixture of flatu¬
lent economic lingo and politi¬
cal

party

dent's

against

would

one

be adjusted to promote

agrees

of

policy
balanced

working

a

Federal

scope

ployment

economic

vote

the

fiscal

on

inflation,

tary

by coincidence happens
the. committee, if of the

same

of

1

the

of

budget, and the continued ag¬
grandizement of the power and

it just

vious performances and recom¬
mendations

to take

misread the stars, however, for
that

to

These

professor of political sci¬
drafted this Grand Design,

ence

so-

lowering of taxes.

cerebrations, and any
political bias is supposed to be
left out.
Unfortunately, what¬

to bundle up and restate all pre¬

character.

and
and

tlemens'

ever

6

lower

honorable gen-

to dominate the

I

one

from the

economist,

seminar

was

govern¬

supposed

and

exception

the

cutest

is

one

>

budget,

the

a

on

Labor

were

the

NAM

high plane in which
national economic good is

place

Budget Message.
No. 3 is the "Economic Report."
is

second

wrong,

including

of the American

of

great universities of the

With

steps.

this

All

the State of the Union." The

on

doing

specific

suggesting

the

constitutional "Annual Message

right

opinion

is

he

where

in

is

President

the

where

one

were

the panel

on

land.

great detail and, after suit¬
public hearings, issue a

pontificial document called the
on the Economic
Re¬
port,"
telling
in
detail just

pitches them
conducting a

House

faster

called

"Report

of the

policy,

turers/Five

are

latter

the

there

economist representing the Na¬
Association of Manufac¬

able

Congress,

to

messages

many

Report,

review

to

supposed
in

instance,

fiscal

with

tional

Presi¬

the

all

read

Economic

conflict

Bergen.

"economists"

Federation

Economic

the

on

in

Edgar

tax consultant

Report, some members of whom
dent's

the fashion for

Presidents of the United

Committee

probably

Report.
It has become

For

Congressional Joint

this

Now

of

seven

Reports On the Report

which

ideas

those

on

will have fun.
committee

a

as

voices

strosity."

laugh at the antics of monkeys
and men, you

grandeur of the

the

con¬

conflicting with those
of the majority of the commit¬
tee's line as Charley McCarthy
cepts

Capital of the world's leading
power,
when he stops at the
Biair
House
across
Pennsyl¬
vania Avenue from "Old Mon¬

but, if you are the kind of per¬
son

with

dent

be

won't learn anything,

you

sure,

To

Report.

part these professors voice

visiting Banana Republic Presi¬

Con¬

the

Joint Committee on

gressional
the

of

hearings

the

to

doing little, to impress the

sore

Square, Boston, Mass.

Telephone HUbbard 2-1990

Teletype BS-69