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ESTABLISHED 1S39
The Commercial and
Chronicle
Financial
Reg. U. 8. Pat. Office
Number 5296
179
Volume
New
EDITORIAL
•'
We S
Eisenhower,
Report to Congress
in his first Economic
President,
as
Socony-Vacuum
Oil
a
Copy
By MORTON SMITH*
Inc.
Company,
Vice-President, Girard Trust Corn Exchange Bank,
Philadelphia, Pa.
Domestic oil executive describes the economic and politi¬
principles concerning governmental responsibil¬
ity to the public and particularly to the business
community.
*
Cents
a
By B. BREWSTER JENNINGS*
required by the Employ¬
of 1946, has set forth some excellent
Act
ment
Price 40
February 4, 1954
Threat No Snowballing Info a Major
Stock Market Decline! i
To Domestic Producers?
•
President
7, N. Y., Thursday,
Is Middle East Oil
As
e
York
cal aspects
mates
of Middle East oil developments. Gives esti¬
Philadelphia bank economist lists
will be
of costs of Middle East oil in relation to domestic
no
why there
reasons
as
decline in business
severe
or
in stock market
.
Unfortunately, there are other sentences and
sections of the Report which either directly or by
rather plain implication rob the sounder senti¬
ments there expressed of much of the heartening
effect they otherwise might well give the thought¬
ful reader.
Consider
the
following sentences taken
serious competition
tic
the ends of economic progress; to
encourage
thrift; and to extend and strengthen economic
*
maintained
creating
margin of extra capacity to meet
and
broadly familiar with the
part that oil plays in providing energy for the world, it
may not be amiss to comment briefly on this point.
In
the United States we rely on oil and natural
gas to
supply something over 65% of our
total energy needs. Elsewhere in the
world, notably in the British Isles
tries,
Continental
"The decisions
currently made by Government,
sphere of taxes or housing or de¬
agriculture or bank credit or any other
months
21% of total energy needs is met by
or
major
area,
nomic
then
inevitably have implications for
petroleum in
a
later
day.
The
new
emerging in the practical art of government
.
.
.
B. Brewster
is to
subject
every act
administrative
of proposed legislation
decision,
as
far
as
that is humanly
possible, to review from the standpoint of the
tribution it is
mediate
or
other 20%
distant future, to the attainment
*An
address
Conference
Continued
on
page
22
New
York
of
by
the
Jennings
Mr.
York
New
City, Jan. 28,
1954.
the
at
Society
1
of
Third
page
ex¬
activity
will
off
be
7%—no depression just
of recession. A few in¬
sort
Colin
Clark
of
Jules
Bogen
of
state
of
Mr.
affairs,
Clark
although
has
I
see
from
retreated
his
original point of view. The real
question, however, is not whether
not
or
one
whether
to
as
wilFnave
we
having
are
ourselves
of
whether the
not
or
a
The
we
We
issue
is
adjust
can
fluctuations
free
and
economy
or
present down-turn will
snowball
into
There
several
are
recession.
a
now.
the
to
changes
major
a
reasons
decline.
Morton
Smith
for argu¬
ing that it will not.
In
the
first
place
it
is
widely
assumed
Continued
28
Eastern
Security
that
to
Mr.
These figures tend to minimize the very great import-
likely to make, whether in the im¬
or more
have been
who
Prof.
another.
on
economists
"Pale Blue
of choice."
and
range
like
ous
from
Continued
the
of
Chips"
good
a
and
that
what we refer to as the Middle East
and the balance from other Eastern Hemisphere nations.
con¬
"Blue
Australia
about
United States, some 20% from other
Western Hemisphere countries, an¬
Jennings
of
New York predict a much more seri¬
supply the energy com¬
ing from petroleum there are pro¬
duced daily in the Free World about
12,000,000 barrels of oil. Of this total
slightly over half comes from the
concept that is
are
industries; (3) ad¬
even new
dividuals
In order to
eco¬
growth and stability if not immediately,
in
one way or
is
5%
mild
a
coun¬
fense
that
list
consensus
from
of
estimated
furnishes
The
whether in the
it is
likely to be
are
research activities
amining the country's business outlook for the next 12
coal
Russia
products and
new
Chips." Concludes "there is
plays a greater part in
energy supply than do oil and gas.
Nevertheless
taking
the
Eastern
Hemisphere as a whole but exclusive
*
(2)
programs are being stepped up,
(4) we have in Washington an Administration
friendly to business, capital and labor. Says common
stocks, though not cheap, continue to offer good values,
are
and the Northern
high level;
vertising and selling
in world's future economic and
persons
at
and
political developments.
ties with the rest of the world."
*
a
reserves
Though most
"It is the government's
responsibility in a free
society to create an environment in which indi¬
vidual enterprise can work
constructively to
prices: (1) capital goods expenditures
threat of
demand, and stresses importance of
consumer
Middle East oil
remove
with domestic supplies. Says domes¬
producers require
growing
ver¬
batim from the document in question:
serve
production, and finds that these costs
♦Outline
Regional
Analysts, Inc.,
of
an
address
by
Mr.
Smith
before
that
on
the
capital
Page 33
Third
Eastern
Regional Conference of the New York Society of Security Analysts,
Inc., New York City, Jan. 29, 1954.
'
ON THE INSIDE—A glance at the index on page 3 vividly shows the wealth of informa¬
tion of vital importance to the securities industry,
is available
HEMICAL
Bank
&
State and
Established
ALL
ON
Trust Company
investors and businessmen which
in the Thursday "Chronicle" every week throughout the year
MARKETS
ONE
Complete corporate and
personal trust facilities
Members
Complete Brokerage Service
Correspondents in all
parts of the world
U. S. Government—Municipal,
State and Revenue Bonds
All
York
New
Orleans
and
★
MABON & CO.
Broadway, N. Y. 6
BeU
RE 2-2820
System Teletype NY 1-2152
Cotton
other
WALL
99
STEEET
Bond
Net
To
Dept. Teletype: NY 1-708
Active
NEW YORK 4, N. Y.
Canadian
NEW
Miami
Hollywood,
•
YORK 4, N.
Detroit
Beach
Fla.
•
•
—
Liquid
OIL, LTD,
Geneva,
Established 1832
WIRES TO
MONTREAL AND TORONTO
Goodbody
MEMBERS
AMBOY
BANK
NATIONAL
OP THE CITY
OF NEW YORK
Switzerland
Holland
CANADIAN
BONDS & STOCKS
Public Service Co.
of New
Hampshire
COMMON
Analysis
American Stock Exchange
PERTH
Gables
DEPARTMENT
Exchange
DIRECT
Brokers
Teletype N Y 1-2270
BRIDGEPORT
Pittsburgh
Coral
CHASE
THE
Maintained
and
Exports—Imports—Futures
DIgby 4-2727
•
Y.
Exchanges at Regular Rates
CANADIAN
Members N. Y. Stock
Refined
Bond Department
Commission Orders Executed On All
sugar
—
Banks
RAINBOW
50 BROADWAY
Raw
Markets
Dealers,
TX*Watson &Co.
NEW YOKK 5, N. Y.
Exchange
Exchanges
Amsterdam,
LAMB0RN & CO., Inc.
Inc.
Trade
N. Y. Cotton Exchange Bldg.
OF NEW YORK
Members N. Y. and Amer. Stock Exchanges
115
of
THE NATIONAL CITY BANK
Sixty Years of Brokerage Service
Chicago
30BROADST.,N.Y.C
Exchange
Exchange,
Board
Chicago
Bonds
Exchange
Exchange
Cotton
York
New
Commodity
Preferred and Common Stocks
★
Stock
Stock
American
Corporate & Foreign Bonds
★
Municipal
H. Hentz & Co.
CALL
New
Founded 1824
1856
NEW YORK
&
Co.
STOCK EXCHANGE
115 BROADWAY
1 NORTH LA SALLE ST.
NEW YORK
CHICAGO
..
Dohduox Securities
GRPOKATIOT!
40 Exchange
Place, New York b.N.Y,
WHItehaU 4-8181
1
request
IRA HAUPT & CO.
Members
and
New
other
111
York Stock Exchange
Principal Exchanges
Broadway, N. Y. 6
WOrth 4-6000
Teletype NY 1-702-3
upon
Boston
Teletype NY 1-270S
Telephone:
Enterprise
1820
The Commercial and
2
Financial Chronicle
.
.
.
Thursday, February 4, 1954
(566)
V
The
position and trade in
We
in the investment
Arizona Public Service
Arkansas Missouri Power
Partner, R. H. Johnson &
New York
Central Indiana Gas
Power &
Florida
Public
Utility
months
ended Sept. 30, 1953 were $7,312,450, compared to $6,454,699 for
the same period in 1952, an in¬
Puget Sound Power & Light
Southwestern Public Service
Co.,
City
Light Co.
in
crease
financial 000,
members of the
Most
Services'A'
Investors Diversified
City (Page 2)
earnings for the 12
Net
RUPERT II. JOHNSON
Central Illinois Electric & Gas
Central
nor
one
the
13%.
or over
time
time
to
Members
issues
Florida
Telephone Bond & Share
strong points
been
each
this
indus¬
1920
Associate
American
Member
Stock
Exchange
Broadway, New York
120
BArclay 7-5660
Teletype NY 1-583
today and the telephone company
has made a private estimate that
the
for
country as a
a
flation
hedge,
Miami
H.
Rupert
regula¬
Since 1917.
Exchange
Exchange
BROADWAY, NEW YORK 5
REctor
Tel.
continuing growth of business
that particular area and other
parts of southern Florida.
not
is
It
generally realized,
so
that the industry is a
good hedge against inflation. For
example, in the inflation era in
France the utility industry was a
better hedge
There
2-7815
than steel stocks.
are
a
few
are growing
much faster than the industry as
a
This
whole.
is
due
largely to
greater population increases in the
territory served, greater percent¬
increases in industrial
age
devel¬
Commis¬
30-year extension
Power
& Light
a
Florida
franchise.
Final approval must be
however, by the voters at
given,
an
companies in
approved
the
of
Miami City
the
1954
sion
financed
election
by the com¬
to be held in April, 1954.
pany
which
industry
the
6,
On Jan.
restrictions.
burdensome
net.)
Members
ISO
a
the
Under
new
will
company
to
agree
6%
City of Miami
residential
from
franchise
pay
Direct
in air con¬
of electricity
use
the electric lead throughout
the South, and is one reason why
their electric load in many places
However,
imposed
the City on real
by
any
Grinnell
December.
Trading Markets
Company
Alabama-Tennessee Natural
Gas
stock is selling
about 40.on the New York Stock
at
Company
Commonwealth Natural Gas
Light Co.,
which has shown and is continuing
&
dynamic growth.
show
Dan River Mills
Scott, Horner &
Mason, Inc.
Lynchburg, Va.
LD 33
is
growing
in
vertise
Miami
bles,
purposes
Palm
this
the company
to
and its
as
Florida
companies
bring
the
up
company
serves
Miami Beach, Coral Ga¬
Hollywood, Ft. Lauderdale,
Beach, West f'alm Beach,
communities
All of the com¬
pany's operations are in the State
of Florida, and a population of
1,200,000 is served.
All electric
properties are inter¬
transmission lines
operated as a unified sys¬
The company also supplies
connected
and
by
are
tem.
to Miami, Daytona
Beach,
Lakeland, Palatka and a few other
communities with a population of
gas
345,000.
and
of any
care
electric hurricanes,
and light service to a total
cities and towns, including
the west coast.
on
take
more
is
and
their
of
underground, the
damage from
placing more
lines
electric
in large
same as
cities in other parts of the qountry.
It
is
believed
that
hurricane
damage will not adversely
the
company's
earnings
Keyes Fibre Co.
$1.60 per share.
r
,
In the 12 months ended Dec.
*
•
expansion prevents the company
from having a more liberal divi¬
dend policy at this time.
Most
utility companies, how¬
ever, from time to time issue addi¬
tional
shares
of
common
stock
either
to
their stockholders by
by direct sales to the
It is interesting to note
or
Florida Power & Light Co.
has
sold
not
stock
common
any
except in July, 1949,
350,000 shares were sold to Amer¬
ican Power & Light Co., which
this
in
way
from
selling additional shares to
the public, so that the sharehold¬
ers' interest in this growing prop¬
GERMAN
INTERNAL SECURITIES
Bought—Sold—Quoted
^jxenhmrwt&
Members
Sew
York
Stock
Exchange
25 Broad St., New York 4, N. Y.
any
the
with
case
period of years.
has, in fact, doubled
in price in the last four years.
If
The
earnings
keep
is
increasing about three
fast
as
within five years, and
should
also
net
have continued to
rise spectacularly in 1953. For the
12 months ended Sept.
30, 1953
earnings
doubled their gross and net
earnings during the last five years
than
were
$67,241,156
$59,396,369 for the
same period
of 1952, an increase
of $7,500,000—or over 12^2%.
gross
earnings
Tele. NY 1-3222
to
earnings
next
be able
increase in dividends
GEORGE F.
summer
will be
Members: N. Y. Stock
five
Pennsylvania Bldg., Philadelphia
N. Y. Phone
Teletype
COrtlandt 7-6814
PH 375
Investment
Opportunities
in Japan
Call
our
on
or
write
current
publications
Japanese securities
YAMAICHI
SECURITIES CO., LTD.
Established
Home
Office Tokyo
Brokers
111
&
1897
—
48 Branchet
Investment
Bankers
Broadway,N.Y.6 C0rtlandt7-5680
.HOv)RIW°%
much
case
it
seems
to
people
on
the
living
spend
coast
of
security I like
best''
in
is
practically
being
all
of
are
likely
be
to
different from
those
other
at
times. A
r
i t y
should
ly sound longterm
value,s
in
industry
an
with
good
growth
zation
loss
of
should occupy
kansas
Shaskan, Jr.
Fuel
Oil
important
an
place.
Ar¬
to
meet
appears
Y
a
relative
in¬
the
Continued
N. Q. B.
OVER-THE-COUNTER
INDUSTRIAL STOCK INDEX
pros¬
pects. Minimi¬
Geo. F.
^<S4VING^
*ecu-
offer extreme¬
Arkansas Fuel Oil is
conditioning
leaves
If this is the
to be desired.
these requirements.
Florida.
the
for
me.
the criteria for selecting "the
years.
Many
vacations
Exchange
outlook
near-term
market,
months than in the win¬
months.
stalled
& Co.
Stock Exchange
Pliila.-Balt.
Arkansas Fuel Oil
doubled in
inland in the South want to
Air
Members
SB(ASKAN, Jr.
Each year
more people go to Florida in the
Winter.
It is also surprising to
know that many hotels on the
their
again
some
and it seems reasonable to assume
ter
Samuel K. Phillips
stockholders
to look for¬
during this period.
The
whole.
Florida Power & Light Co. more
the
2039
the remainder of
as
the country as a
that
current
the
at
up
rate the stock should double
ward to
3-6's
a
stock
Units
V.T.C.
Philadelphia Transportation
the
outstanding growth that has taken
place in this property, Florida
Power & Light stock appears to be
an
outstanding value for steady
growth over
& Lippincott
Walnut Apts.
for
as
Pfd.
Stetson
Dredging Com.
Bethlehem Hotel Units
Leeds
various
utility companies.
that reason, as well
For
B.
John
American
Partner, Shaskan and Co.
population of the State of
Florida
times
is
as
earnings from gas and Miami
Gold
Coast now do not
for the
year
ended shut down
(at all in the summer
Dec.
31,
1947 were $29,241,067.
because the number of people va¬
Five years later, or for the calen¬
cationing there in the summer is
dar year 1952, gross earnings were
increasing at a greater rate than
$61,408,593.
'those going in the winter.
During the same periods, in 1947
Around Daytona Beach, for ex¬
net
earnings
after
taxes were
$3,574,295 compared to $7,621,653 ample, they have a larger number
of people vacationing there in the
in 1952. The company's gross and
Gross
compared
Plume: HAnover 2-9766
Philadelphia 3, Pa.
from time to
is not diluted
time
other
extent.
The
refrain
Power & Light Co. to
ida
electricity
*
BOENNING & CO.
30,
affect
to
Corp.
Exchange and is paying quarterly
dividends at the annual rate of
erty
franchise will prove bur¬
new
densome
to
Bradenton and other
Companies
of
City
the
are
Daytona Beach and St. Augustine,
as well
as Fort Myers, Sarasota,
And Successor
to
believed, however, that
unable Question of hurricane damage.
to supply them with sufficient gas Florida Power & Light has made
and electricity for gas and electric what it considers ample reserves
they
Miami,
I. G. FARBEN
gain
a
It is not
fast that they ad¬ earnings in the future.
in the
Many investors in considering
asking people to use Florida Power & Light and other
moment
the
at
of 354
must carry on I
making
period of $215,000,
so
011 stoves for heating
power
CROSS
that
for
the newspapers
area
The
RID
taxes
of
stoves.
Your
past year would have been about
$815,000, while the company paid
About $600,000.
their revenues are from
the sale of electric light and power
and about 3% from gas. Business
97%
Tele. LY 62
Power
Florida
to
Company
Outstanding company
such
One
is
Bag & Paper
Parchment
stock
common
South the wid¬ tate or personal property will be was the former parent company
ening expansion of air condition¬ absorbed in the amount of this of this property. It appears, there¬
ing which uses vast quantities of payment. The City's share for the fore, to be the policy of the Flor¬
electric power.
-
Kalamazoo Vegetable
Light Co. has
Florida Power &
2,450,000
shares
outstanding. The
that
es¬
offices
Interest in
Southern Advance
in August than it is in
is higher
the
taxes
consumers.
branch
our
ing
rights
public.
commercial
to
A Continuing
increas¬
ditioning units is sharply
opment, and in the
American Furniture
wires
numbers
increasing
in
year.
The
the
of collections
and
NY 1-1557
La, - Birmingham, Ala.
Mobile, Ala.
* *
The franchises under which the
1953 the company earned $2.98 per^
the common
stock.
(For example, a 10% in¬ company operates in the various share compared to $2.63 per share
crease in gross may at times result
municipalities are considered gen¬ during the previous 12 months'
in as much as a 50% increase in erally
satisfactory and have no period. The necessity of further
however,
McDonnell & fa
Stock
It
therefore,
1,000,000.
reasonable to expect,
HAnover 2-0700
ment, and leverage of
Rights & Scrip
American
manage¬
good
be
will
area
the
of
is
Johnson
in
reasonably
population
the
1960
by
de¬
whole,
sures
specialists in
Stock
Miami
500,000
of
population
area
of busi¬
tion which in¬
York
the
is believed to be over
The
10% in¬
crease
State
Sew
stock
preferred
sold.
been
erage
ness
5
has
re¬
additional issue of
an
4V2%
$6,000,000
problems, no
bad debts, av¬
Corporation
Established.
inventory
no
weeks
cent
In
growth.
rapid
company's
txvnangw
Exchange
homes
gether with retained earnings, the
try are:
no
competition,
New York Hanseatic
preferred stocks have
sold in order to finance, to¬
mock
Stock
New Orleans,
conditioning is being installed in
and businesses throughout
of bonds and
American
25 Broad St., New York 4, N. Y.
while most of the older
hotels, like the Roney Plaza, have
also installed air conditioning. Air
light industry.
Some
of
the
new
built
hotels and motels being
in Florida,
York
Sew
Memoer»
Strong-Cobb
of
Steiner,Rouse&Co.
(Page 2)
new
The company had
From
New
Co.,
of about $858,-
year
total assets of
many desirable characteristics of $234,000,000
at the end of 1952
the great recession proof electric compared to $144,000,000 at the
end of 1947.
power and
community are familiar with
Shaskan
York1 City.
Jr., Partner,
Shaskan,
and
Bought—Sold—Quoted
Co.—George F.
Arkansas Fuel Oil
Brown-Allen Chemicals
Louisiana Securities
Co.—
L'ght
Rupert H. Johnson, Partner, R.
H. aohnson & Co., New York
discussed.)
they to be regarded, as an offer to sell the securities
are
and
Power
Florida
particular security.
intended to be,
(The articles contained in this forum are not
W. I.
Aztec Oil & Gas
Alabama &
Their Selections
week, a different group of experts
and advisory field from all sections of the country
participate and give their reasons for favoring a
Participants and
Forum
A continuous forum in which, each
American Marietta
Week's
This
Security I Like Best
14-Year Performance of
35 Industrial Stocks
POLDER
page
37
REQUEST
National Quotation Bureau
Incorporated
46 Front Street
on
ON
New York 4, N. Y.
Volume 179
Number 5296
.
.
.
The Commercial and Financial Chronicle
(567)
a
Bills Introduced to
INDEX
Lichteiweih
"
Articles and News
Amend Securities Acts
E.
Capehart and Congressman
Wolverton introduce identical
Bills
Text of the Bill and
amend Securities Acts.
published herein, indicates
ment
furnishing
of
information
registration of
Senate
in
purpose
during
the
Charles
and
A.
House
Snowballing Into
—Morton Smith
i
Is Middle East Oil
a
Major Stock Market Decline!
a
Cover
:
"THE MAN BETWEEN"
to
explanatory state¬
—B.
Brewster
Threat to Domestic Producers?
Jennings—
Obsoletes and cash is—us.
...Cover
is to facilitate the
"waiting
of
period"
issues, and shortens period after effective
new
Page
AND COMPANY
No
Homer
Senator
Fission for Growth—Ira U. Cobleigh_____
4
Consumers Can Call Turn in Business—W. W. Townsend
6
The
6
Come in
for
now
quick sales!
date of registration,
dealers
during which underwriters, brokers and
required to deliver prospectuses. Exemption of
are
securities from registration requirements raised from
mum
of
Obsolete Securities
Dept.
99
Business, Not Government, Has Responsibility for Prosperity
maxi¬
a
Air-Conditioning Industry—Hobart C. Ramsey
—Benjamin F. Fairless
$300,000 to $500,000, and permission given to dealers
WALL
STREET, NEW
Telephone:
7
YORK
WHitehall 4-6551
t
and brokers
to extend credit on newly registered securities
days after end of the offering period. Bill also provides
simplified registration procedure for Investment Companies.
The Construction Outlook—Thomas S. Holden
9
30
Hearings
Senator Homer E.
ate
Committee
on
under
now
Capehart
Banking and
way.
(R.-Ind.), Chairman of the Sen¬
Currency, on Jan. 27 introduced
Atomic Power—A Realistic
Appraisal—Philip Sporn
10
Winter Markdowns—Roger
W. Babson
11
Gold Price and Gold Standard—Donald H. McLaughlin
12
Mortgage Credit in 1954—John W. Kress
12
Arizona Public Service
Puget Sound
Public Service
of New Mexico
Multilateral Convertibility Should Be Our Aim
F.
—George
•
„
Bauer
13
___,
••
>
,
,
Rochester Telephone
Independence of the Federal Reserve System—Allan Sproul— 14
The Story of the New York Mail Tube—Hubert F. Atwater—
15
San Diego Gas
& Electric
Bills Introduced by Sen. Capehart and Rep. Wolverton to
Securities
Amend
Acts
__
Hugh C. Gruwell Optimistic
on
1954
3
Bought
Barrier
Recession
Bill
a
(S.
Securities
the
securities
handicapping
issues
new
which would
2846)
Acts
of
have
that
industry,
the
long
been
the
House
regarded
Bush
Purchasing Agents Extremely Cautious
oppressive
as
securities.
for
of
prospectuses
used
13
Unlisted
Production
and
Eisenhower's
☆
Employment
15 Broad
13
Advisers
Economic
Manager
Trading Dept.
Outline
Street, New York 5
Telephone
Policies for
Combating Economic Instability
Teletype
Dlgby 4-1680
16
NY 1-3370
than
more
13 months after the effective date
of a registration statement; (4)
raise the exemption limit of se-
Representatives
by Congressman Charles A. Wol-
!
Exchange
☆
Guaranty Trust Tells How to Stimulate
to
as$
—of actions in a new issue; (3) simplify
information
requirements
and
distribution
Members New York Stock
11
JOHN F. REILLY,
amend certain provisions of the
An identical bill was introduced
in
Prescott
Chas. A. Wolverton
Capehart
Sold
BURNHAM AND COMPANY
11
__
Chase Bank Economists Foresee Continued Mild AdjustmentHomer E.
—
9
Leopold D. Silberstein Terms Atomic Developments
li
Eisenhower Presents Administration's Housing
Private
Program.
18
Companies Meeting Pacific Northwest
/
19
Aztec Oil & Gas
from $300,000 to $500,000, and (5)
RFC to Dispose of Its Small Business Loans.
20
Company
The Subcommittee of the Senate
Peiyut brokers and dealers to ex-
Banking and Currency Committee,
*end credit to purchasers of new
after a period of 30 days!,
instead of six months, as in the
present law.
There are also
amendments made to the Trust
Indenture Act of 1949 and to the
Investment Companies Act.
World Bank Reports Increased Income.
28
Selevision
verton (R.-N.
J.), Chairman of the
Committee
House
of which Prescott Bush (R.-Conn.)
the
&
Co.
Incorporated, Chicago; G.
Funston, President of the
New York Stock Exchange, and
Edward T. McCormick, President
Keith
Witnesses
scheduled
for
today
T. Jerrold Bryce,
Clark, Dodge
& Co., New York, Presideut of the
Investment
Bankers Association;
-
Charles
F.
Eaton, Jr., Eaton &
Incorporated, Boston;
Howard,
Judson
Power Needs, says J. E. Corette
registration
explanatory statement made
An
.
Senator Capehart is reproherewith, followed by the
by
duced
text
the Bill:
of
'
s
Memo
As We
Bank
See It
and
Insurance
Cover
Stocks
Business Man's Bookshelf
Canadian
The
amendments
designed
changes in the
limited
make
are
Securities Act of 1933, the Securities Exchange Act of 1934/the
I
Coming Events in Investment Field
8
8
U.
S.
Economic Battlefield"
offers, but not sales, of securiduring the
"waiting period" between the fil-
ties under registration
Ing
of
and its
from
a
registration
year
to 40 days the
pe-
which all dealers are
required to deliver prospectuses
in connection with trading trans-
have
further the basic concepts and
the statutes,
s
reduce
riod during
which
purposes of
statement
effective date;. (2)
one
safeguards
been established in the public interest. The proposals are intended
(1)
Indications of Current Business
Mutual
30
Reporter's
Security
Information to Investors During "Waiting Period" '
The
a
rjties
basic
Act
of theiSecurequire that is-
purpose
is
to
Continued
on page
Security
.
41
;
.
26
specialized in
Corner
and
,
44
Drapers' Gardens, London, E. C.,
land, c/o Edwards & Smith.
CHRONICLE
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Boston
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Every Thursday
issue)
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and
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of
In
year.
>
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Monday (com¬
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and
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Eng¬
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Place, New York 7, N. Y.
HERBERT D. SEIBERT, Editor & Publisher
state
Rohr Aircraft
Copyright 1954 by William B. Dana
Company
Reentered
vertising
& Gas
Temco Aircraft Corp.
I
Dominion
TELETYPE N. Y. 1-5
Olin Oil
2
5
Reg. U. S. Patent Office
25 BROAD ST., NEW YORK 4, N. Y.
•
16
2
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TELEPHONE HAnover 2-4300
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j,
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25 Park
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i
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24
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20
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40
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±
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HA 2-0270
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Prospective
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MACKIE, Inc.
&
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___
Published Twice Weekly
have
♦
10
Activity
Observations—A. Wilfred May
Our
Bargeron
Funds
NSTA Notes
The COMMERCIAL and
For many years we
-
"Rights"
19
From Washington Ahead of the News—Carlisle
Railroad Securities
the
and
of
Corporation
Dealer-Broker Investment Recommendations-
the Boston Stock Exchange.
proposed amendments to the
Southern Union Gas
44
*
News About Banks and Bankers
The
25
Securities
Central Trust Indenture Act of 1939 and
Chicago; W. H. the Investment Company Act of
Barlett; Clyde McFarlin; James E. 1940. The proposed amendments
Day, President, Midwest Stock Ex- preserve existing statutory rechange; and Harry Besse, Hutchins sponsibilities
and
liabilities
of
& Parkinson, Boston, President of sellers of securities to purchasers
Large, President,
Electric & Gas Co.,
Acts would (1) permit the making
Corporation
(Editorial)
Einzig—"Sterling Area Interested in
The text of Senator Capehart's
statement follows:
to
Southern Union Gas
Regular Features
^
^Senator Capehart
of the American Stock Exchange.
are
from
issues
is
Chairman, began hearings on
bill.
Among the
witnesses
yesterday (Feb. 3) were Ralph H.
Demmler,
Chairman,
Securities
and Exchange Commission;
Edward C. George, Harriman Ripley
issues
curities
Interstate
on
Foreign Commerce.
and
account
of
the fluctuations In
rate of
exchange, remittances for for¬
eign subscriptions and advertisements must
be
made In
New York funds.
3
Direct Wire to
PLEDGER
&
COMPANY
LOS ANGELES
INC.,
0
The Commercial and Financial Chronicle
4
..
Thursday, February 4, 1954
.
(563)
(there's
Fission for Growth
in Wall
Author of "Winning
at
present levels around 54 % and,
to
them, this atomic vista is just
Carbide
Oak
glance at the expanding application of atomic energy;
some
projection of them as a potential <■ generator of
corporate income and dividends.
plant
U-processing
a
Shiprock,
Street"
at
by
designated
and
Ridge,
AEC to run the new
and
plant;
(3) Vitro Manufacturing
Co.
(stock over-the-counter)
of
sell ore, these
buyers. And if you seek
to latch onto some of this fabulous
basic mineral you can stake out a
are
"growth" is surely the most overworked.
is
Everybody
king
about
how
many
if
o n
1 y y o u
' d
been
in
bird
to get uranium out
phosphate rock.
I
a
process
important related
make hydrogen
area for H bombs. This is produced by
Lithium is
an
used
mineral
to
Foote Mineral (common
over-the-
,
into
inspection, and Geiger clicks,
millions).
However,
that's
much, however sketchy,
So
for
and treaters. What
pretty rugged road work for the about nuclear power? Again, all
average
guy.
The records also
rights to plant ownership, and
show that some speculators from
even
the technical
patents, be¬
Coca
IBM,
They
Motors,
0 o 1 a
the producers
of their club long to AEC. With approval of
don't tell you
that
General chairs have done pretty well. In this mighty agency, five utilityIra U. Cobloiffb
Motors is only less than a year's time Nesbitt
industrial teams are poring over
Labine
rose
from $1 to $4.65;
one of a dozen
techniques for using reactors to
Gunnar
from
25^
to
$13.75
and
or so survivors of some 1800 auto¬
generate
electricity.
You 1 may
Uranium
(well named?) find some clues to atomic invest¬
mobile corporations which have Peach
rose
from $1 to $40. So locating ment in these impressive pairs:
chugged on, and from, our busi¬
uranium either in person, or via Monsanto Chemical—Union Elec¬
ness scene since 1890. Hundreds of
radio companies have also come shareholding, can be lush if you're tric (St. Louis); Dow Chemical—
the
lucky.
and gone.
Growth is only wonder¬
continues; but, at the out¬
ful if it
set, it's awfully hard
redwood
the
tuses in
So
it
the
cac¬
with
be
atomic
Duquesne
Edison—P. S. Northern 111.
at
you
dabble in this primary stuff,
must
financial section
your
If
enterprises.
prospecting
Look
E.; Walter Kidde—
&
dozens of
proach to atomic profits is in ore
indus¬
tries.
G.
there are, and
doubt
the, woodlands of finance.
will
will be, dozens and
"turkeys." Without any
the most
hazardous ap¬
Pacific
Corp.—
Bechtel
Edison;
Detroit
I've listed
But for every success
to separate
from
trees
comfort
cozy
(1)
probably you ought to look at
and
you'll see many new specula¬
tive enterprises with Uranium in
Molybdenum, a producer
of uranium ore with a plant to
Climax
their
titles; and dozens of quite
established companies are making
treat 20,000
tons of ore daily, and
Commonwealth
Light;
people ga-ga. What, they ask, will
it do to the use of coal, oil or
Well, there's
fuels?
natural gas as
occasion for immediate alarm.
no
electricity is by
Heat to generate
important
(about 19%).
most
the
means
no
H. W. Lutich, Inc.
the Ameri¬
Exchange last week
and
can
Stock
was
Walter
up
on
Kidde
Co.
&
whose
affiliate, Walter Kidde Nuclear
Laboratories, Inc. at Garden City,
L.
I., has
design
for
contract with AEC to
single-purpose reactor
a
a
(in associ¬
production
power
Light Co.).
with Duquesne
ation
The company
also makes fire ex¬
tinguishing equipment for plants,
control equipment for
aircraft, smoke detectors, etc.
It
is somewhat unique in that it has
but 208,900 outstanding common
shares, quoted currently at 35.
of
Because
wide
the
current
cited
and
ex¬
this piece
Robert K. Bourne
has been presented to limn some
of the growth vistas in atomics.
SAN FRANCISCO, Calif.—Rob¬
The truly titanic growth that will ert K. Bourne has become asso¬
some day take place has been in¬
ciated with H. W. Luticji, Inc., 525
hibited
by government owner¬ Market Street, as Manager of the
ship and control, up to now, of all Over-the-Counter Trading De¬
interest,
Uncle Sam has
the basic factors.
$12 billion on atomics
since 1940, against a wee fraction
of that, by private industry. Thus,
important forward motion by cor¬
spent
over
porations awaits legislation, to be
offered
in
Congress this year,
giving private industry more al¬
luring incentives, and a much
larger participation
in nuclear
ing
and
as
of,
industry.
government
Atomic
trols
The
the
whole
and
works.
own
fered
at
prices
guaranteed
sliding scale
based
on
the
prices
are
present
at
may
for
growth.
foods
Co.
in
the Trading
"Nautilus"
MacWhinney Is Director
in medicine,
uses
manufacturing;
you
current
by reading "Nucleonics" (a McGraw Hill magazine) and there's
a
new
mutual fund, Atomic De¬
velopment
Mutual
Fund,
Inc.;
with
a
like
keep
to
portfolio devoted to atomic
Its
prospectus
con¬
securities.
ex¬
Companies,
of¬
but
processing, the ore would include
a
atomic
have had the board rooms
radio,
buzzing.
of
specu¬
s.
Oil
Kerr-McGee
(1)
Industries
run
thousands
of
a
sudden
fission
financial
a
have
gone
expeditions,
the week's market
rising prices. Well RCA
swell company and its pio¬
making
a
entitled
A
All
most
a
the
feature attraction.
the
submarine,
such
the
as
atomic
-
paying
It would
press.
include
Prepare Once IVIore To Scurry, *2n
Record
ket
for 1953:—We
ended
lower
than
netted
it
85
began;
mos.
Dow Points
300
points
a
long
In any event,
which
has
well.
$3
The
has
stock
$25 □ • 3
(although the
in
the
last
in
be
A. Williams
George
Colo.—
Ferrell,
&
Ferrell
is now with
411V2
Rex C. Evans
(Special
business
from
in
securi¬
a
offices
at
236
to The Financial
HOLOKE,
Evans
is
Colo.
Opens
Chronicle)
—
Rex
We take
pleasure in announcing that
Mr. Samuel S.
Hall, Jr.
\
has this
a
us
day been admitted to our firm as
General Partner and will be
as
a
active with
financial consultant and adviser.
6
mos.
$8 □
mar¬
years
plant for the $55 million
"Nautilus," and at work on a re¬
actor
for
surface-type
vessels;
and much of the electrical equip¬
power
for
the
Major L. L. B. Angas, Inc., 480 Lexington Ave., N. Y. 17
CF-24
J
Reynolds & Co.
government plants
be supplied by
Westinghouse (also by General
Electric).
Lots of market anal¬
"
Members
an
New York Stock Exchange
and other
Philadelphia
February 1, 1954
•
.
'&*$*?*"': *'
American Stock Exchange
principal exchanges
Main Office: 120 Broadway,
Chicago
•
C.
engaging in a securities
business from offices here.
Cottage Grove Avenue.
"
account,
Main
Street.
at
has been and will
Chronicle)
JUNCTION,
considerable
silly to attempt to
this swift
&
1939.
aircraft
however, the
way off for
as¬
With Ferrell and Ferrell
kicked
appraisal of Westinghouse in the
nuclear field. It is developing the
ment
v.
a
CHICAGO, 111.—Joseph C. De¬
revo¬
merit.
subscription • 12
Co., Inc., since
Benkert
W.
A.
atomic
much
driven
Frankly,
looks
stockholders
39
Both 302 and 303 Free with
with
pioneered in this field is a solid
company
and
has
treated
its
important Digest.
on
MacWhinney has been
i
plants in other Naval
power
ships in commerce.
General
Dynamics
optimists should read it.
No. 303 is also
Mr.
sociated
"selected short subject" to
ing
atom
□
Railway Company.
J. C. DeJohnette Opens
South
carriers.
Stop This Recession In Time, *2
& Mackinac
director of the Detroit
2124 West Platte Avenue.
lutionary development, and successs here might well lead to sim¬
Why Gov't Cannot, and Will Not
firm, has been
on
around
press,
engaging in
ment may
craft
on
Carlton E. Ruple is
ties
ilar
investment
made a
Inc., New York
securities
GRAND
securities business from offices at
Johnette is engaging
About
Read No. 302,
& Co.,
a
of A. W. Benkert
(Special to The Financial Chronicle)
earnings totals from this depart¬
propulsion is, of course, a
The Angus Digests sweep the world. They get
better and better and better. Watch the record.
MacWhinney,
Sherman
S.
(Special to The Financial
Ruple Opens
COLORADO SPRINGS, Colo.—
RCA
be years away. So let's
tabbing RCA as an elec¬
tronic great, with the atom play¬
ANGAS
E.
neering in nucleonics is fascinat¬
ing, but let's face it: impressive
keep
MAJOR
C.
s. MacWhinney
Vice-President
leader at
is
U308
to
battery
lators all
on
producing
not
Groton,
at
Department.
meanwhile,
the
In
new
and
might also
Conn., Jan. 21, and the RCA an¬
nouncement
last
week
of
an
Literally
be
can
tremely profitable.
pur¬
on
bodies
ore
extraction
guaranteed
ma¬
1958, all the ore
grade
good
located,
alone
It
terial, uranium? ore^. It will
chase, until
If
con¬
the basic
mineral
or
rights in this U-prone geography.
S.
U.
holdings
land
ing
strictly
a
Energy Commission
buy
can
it's
now,
for¬
Conrad, Bruce & Co.
and
&
a
marine
to,
was
Wiiliston, Bruce
of such legislation, you
indeed begin to see fission
Vanadium
Corporation, a factor in its cost
headlines high-light¬ (2)
tains an interesting list of share
radio-active phase of their leader in the Colorado Plateau True, reactors may be able to investments made to date, in this
operations. In truth, there can be with three mills for handling its produce the heat, but can they do fabulous and fascinating field of
no
question that atomic fission own and purchased ores. Both of so at competitive cost? As a mat¬ fission.
Some
day,
corporate
and its myriad uses, are the major these companies are soundly fi¬ ter of cold hard fact, right now
earnings
may
display
great
nanced
and
well
managed.
Their
contribution to energy source and
atomic
the tail wags the dog! Atomic En¬
expansion.
We
hope
shares
are
listed
N.
Y.
S.
E.
to industry in this century; and
you're
aboard
the
right ones,
ergy Commission is an enormous
it's equally true that many in¬
Principal
known
deposits of user of coal, and is the biggest when they do!
vestors
will
wax
opulent frqm uranium ore are in South Africa, single customer of electric power
same.
But they will have to be the
Belgian
Congo, the Utah- in the U. S. Atomic boom does
Joins John Douglas Co.
discerning, informed, intelligent, Colorado Plateau and the Beaver- not necessarily spell doom for
(Special to The Financial Chronicle)
lodge
Area
in
Saskatchewan.
Com¬
patient and perhaps lucky if they
other types of energy.
OMAHA,
Neb. — William S.
are to succeed.
panies or
prospectors will no
Not to stress the obvious, but
As a sort of chart or compass doubt bring in
Latta, Jr. has become connected
new finds from
rather to bring topicality to this
with John Douglas & Company,
to eager-would-be entrants here time to time, so watch for sound
theme, the launching of the subInc., Insurance Building.
let's set down some basic facts. Up enterprises which may be acquir¬
newspaper
Bourne
With
application.
and
energy
Mr.
partment.
merly with J. R.
passage
watch the
possible
atom
electric
production has a lot of
This
power
Active
of pneumatic
,
rock
General
etc.
engineering services, with the op¬
eration of an ore refiner; and (4)
Blocks on Chemical
(stock un¬
derwritten last year) developing
(you'll recall a lad named Steen, counter
around
57),
Lithium
written up in "American Mercury" Corp.
(around
7
O T-C), and
and
"Readers
Digest," parlayed American Potash Co.
Radio,
,
Colorado; and
you're going to
or
honeycomb
your
Plateau
with knapsack and Geiger counter
early
an
Utah
in
inform Uncle Sam
you'd
n o w
have
your
claim
always yak-
millions
makes
running till 1962.)
So, if you want to
word
the
investment,
equity
similar deal
a
long-term
for
dough
content of the ore. (Canada
deploy¬
In all the tracts on the
and
technical
combines
which
Paducah, Ky.
Robert K. Bourne With
extra attraction.
an
New Mex.; (2) Union
&
Carbon, operator of
A brief
ment!
ysts just plain like Westinghouse
for
and a convertible bond
investors here)
which will
build
COBLEIGH
IRA U.
By
selling
stock
common
around 42,
New York 5
San Francisco
Volume 179
Number 5296
The Commercial and Financial Chronicle
.
.
.
1* '
vl
t
:
l<"
i-sv«-
i
-
i't
rr
if'tf
Steel
MM
■■
i
Production
N. Y. Fin. Advertisers
Electric Output
Observations...
Carloadings
Retail
State of Trade
Howard
Industry
Price
Index
Auto Production
.
J.
Carswell, Manager
of
the
publicity department of
Guaranty Trust Co., was elected
Trade
Commodity Price Index
Food
and
By A. WILFRED MAY
President of the New York Finan¬
Business Failures
LATEST STOCK DERBY RESULTS
Advertis¬
cial
He
ers.
J
suc¬
—With the Usual Also-Rans
Edward
ceeds
The day after last week's "Chronicle"
F. McDougal
Little change was noted in total industrial
production for the
nation as a whole in the period ended on
Wednesday of last
week as declines in some lines tended to be cancelled out
by
advances in others.
The over-all picture
however,
moderate drop
from the high level of the
reflects
It gave
uary.
estimate
no
of
extent
of
the
drop from De¬
cember. In that month, output of the nation's mines and factories
stood at 127% of the 1947^49 average. This was 1%% below the
November
level
mill
Steel
in
amount
pansion"
and
4%%
and
January,
somewhat above
did
the
show
not
Board
than
more
the
noted.
the
usual
"usual
Auto
seasonal
seasonal
owing
rose
the reduced
levels of November and December,
but output at several important plants was re¬
to dealers' large stocks.
A
report from the National Association of Purchasing Agents
points out that industrial demand picked up a little toward the
end of January after a slow start.
It declares its members are
still cautious, but not pessimistic about the outlook for America's
adding, the majority still believe the current slide
economy
may
level off this quarter, and could turn upward.
Reports coming to hand indicate
a
slower pace in unemploy¬
ment, after rising steadily for several months. In the week ended
Jan. 23, new claims for jobless compensation declined
410,622.
This
the
was
second
consecutive
weekly
decline—from
444,816
the previous week and 468,878 the week before. While the num¬
ber of idle workers continues to rise, the
employment situation
in
areas
many
weeks
looking
reported
was
better than
it
did
few
a
ago.
workers are being recalled by shoe producers
England, by New York State apparel and textile manu¬
facturing firms and by Avco's Crosley television plant in Cin¬
New
Baltimore & Ohio Railroad
cinnati.
said to be
rehiring some
employes let out in recent months at its Cumberland, Md., shops.
Steel
in
but
1952,
similar
industry earnings
fourth
were
nearly 50% higher in 1953 than
income
1953
quarter
was
fell
12%
short
the
of
period in 1952.
These
conclusions
drawn
are
from
a
compilation
of
steel
financial reports by "The Iron Age," national metalworking weekly. Included in the compilation are companies ac¬
counting for more than 80% of the industry's steelmaking capacity.
company
Sharp improvement in steel industry earnings last year re¬
sulted from the biggest volume of business in its history.
Most
companies reported all-time records in sales, production and ship¬
ments, states this trade authority.
Moreover,
1953
whole
duction,
was
a
operations
of
relatively unhampered pro¬
1952. were crippled by a 54-day
year
in
were
at
a
noward
held
regular
best
of
Bowery Savings
Bank, became First Vice-Presi¬
dent and Evans G. Morgan, Vicethe
The
of
belle
B.
Hudson
Hanover
Bank,
Vice-President.
Second
Murray,
Isa-
President
Advertising Co.,
was
Choate,
Mackarness
Trust
H.
Co.;
Goode,
Patrick
tional
and
Irving
Ryan,
directors
as
both
the
of
present
Thus
CEA
uncertainty that
and
Clinton B.
Wesley Mitchell, joins top-level
the prophets' system.
also
helped
by
But profit margins
increases
in extra
charges and base prices.
are still thin, may
shrink thinner as a result of less volume this year. End of excess
profits tax, however, will help ease the squeeze, it adds.
year
were
While reports of record or near record earnings spurred steel
stock
values, hope for
sharp spring upturn in steel
buying was growing dimmer.
Yet, the market is becoming more
stabilized than depressed. It would not be surprising if the steelmaking rate were to stay within the narrow range of the seven¬
ties through most of the first half of the year, it observes.
company
The
market
is
intensely
a
competitive
with
producers
vying
A.
Wiitred
authority to our skep
down to
way
public investors (who are clients and subscribers to the
Investment Report), as well as the sophisticated
Axford, Editor of "The
Banker";
Richard
Meyer, of Dow Jones & Company;
relatively
objective members
were
three "races"
end:
the
run
of
course
as
the
of the
Dow
of
financial
the
are
again present in the market but
are
(which stood at 264.34 at the start); picking the individual issue
make the best percentage gain; and the stock which would
show the greatest percentage loss over the run.
to
Roland
Palmedo,
of
Harriman
Ripley & Co., Inc., Earl T. Sandmeyer,
of Chemical Bank & Trust
Co., and Quentin I. Smith, of Al¬
bert Frank-Guenther Law, Inc.
to The
Financial Chronicle)
CLEVELAND, Ohio—Robert D.
Johnson
has
become
Commerce
members of
the Midwest Stock Exchange.
With Merrill
The 21% loss registered by one of the issues popularly
picked to rise, Coastal Caribbean Oils, far exceeded that of any
issue the experts picked to decline; and two of the other popular
Such
Corporation and
results
surely
Pierce,
with
Fenner
Lynch
Merrill
&
Corporation,
demonstrate the inadequacy
from hindsight!
notes
are:
(1)
although steel leaders are still gen¬
ones have been forced to scale
down
their
estimates
Inter-Expert Contradictions
as in previous contests, was the wide disparity
registered in the experts' predictions. An equal number of the
12%—thought
that
the
stock
average
stocks would
Lynch,
Beane,
go
by 8%, and 4.2% went out on a bullish limb
On the other hand, 3.2% of the prophets thought
that the D-J would fall to 225.
The
winning Dow selection
was
Superior Avenue, N. E.
achieved
by
a
Continued
216
★
Page
59
of
the
non-profeson
Report.
The Franklin National Bank
of
dustry is still steel's No. 1 customer, but even the biggest and
most aggressive auto companies are finding it prudent to shave
production to keep from running too far ahead of sales; (3) al¬
though mills like to receive orders at least 30 days ahead of roll¬
ing, you can get most common carbon steel items
on
are
Franklin Square
20,000 Shares
two weeks
CAPITAL STOCK
notice.
Offsetting some of the disappointments in the market, it states,
these points on the brighter side:
(1) many small and mis¬
cellaneous steel
users
who
(Par Value $10 Per Share)
had been
completely out of the mar¬
ket while correcting inventories are placing orders again; (2) the
tough adjustment period for warehouses appears to be nearing
an
end
better
and
than
(3)
had
Automotive
demand
been
construction
products
has
held
up
expected.
Price: $51.00 Per Share
production the past week declined below that of
the previous week
a
for
with output placed at 112,560.
This represented
drop of 2% from the 113,532 in the preceding week and 4% less
than the 117,654 in the like 1953 week, according to "Ward's Auto¬
motive
Reports."
currently reported that Hudson is closing down this
wedk, laying off 4,500 workers (it worked only three days in each
of the past two weeks); and Nash is going on a four-day basis
*
,
;It
was
this week, cutting
Ford Division,
output about 20%.
too, is also cutting back but not yet to the
ex-
'
Continued
on
page
22
would
up
extending to 305.
of
demand; (2) it would be foolhardy to
gamble on a sharp pickup in automotive buying. The auto in¬
mere
Interesting also,
cur¬
erally optimistic, the more bullish
of
each
formal obeisance to "selectivity"
contestants—about
CLEVELAND, Ohio—Forrest N.
is
Alleghany
fall by 8% as those who, with the same "information," were con¬
vinced it would rise by 12%.
18.9% of the dopesters thought
(Special to The Financial Chronicle)
Barnhart
showed
the contestants
issues
loss of 4%.
connected
Miller & Co., Union
Building,
of individual
particularly bad advantage. Of the 12 stocks receiving the most
votes as the biggest gainer, seven actually declined in lieu of ad¬
vancing at all—with the entire group of 12 showing an average
bull issues, Avco
dropped 12%.
Hayden, Miller Adds
(Special
Up Stocks Go Down
In their selection
to
rently being partly offset by other market developments. Some
of the reasons no big upturn in spring buying is expected, this
trade journal
There
press.
period Labor Day-to-the-yearIndustrial Stock
Average
Jones
for business by nearly every means they can think of—short of
slashing base prices. Actually mill net prices are being shaved
closer and closer by freight absorption which is decidedly on the
increase, continues "The Iron Age."
Seasonal factors
May
American
with Hayden,
last
to
Burns,
Wiesenberger
were
*"
Earnings
Arthur
about
i
strike.
attach
and the future."
Chairman
fol¬
lowing the objective conclusions of his famed
sional
of Bankers Trust Co.
Re-elected
through making. full use of
to give due recognition to
This annual nationwide contest is staged by Arthur
Wiesenberger and Co., members of the New York Stock Exchange
specializing in mutual funds. This year the entrants comprised
professionals in the investment community and non - profes¬
McDougal,
Mr.
the
'yyt jj
Stock Derby.
of
Bank,
>■
the comparatively low level of stock
additional interesting data have just come to
hand in the form of the results at the finish of the Wiesenberger
First Federal
W.
President*
mm;
entertain such illusions. The
hope for is to minimize errors of
Getting
Week;
of
the
of
current
market prediction,
of
Savings & Loan As¬
Hempstead; Kermit
Schweithelm, of the Chase Na¬
A.
the
can
can
elements
ticism
Har¬
are
Business
of
those
teacher
of
re-elected Treasurer.
New directors for 1954
high:
to
available data, and
re¬
elected Secretary, and Robert J.
Stiehl, Assistant Advertising Man¬
ager of
Banking Magazine, was
old
we
miscalculation
Edwin W. Goat, Assistant Vice-
President
Report
on
must first of all recognize the limita¬
attempts at prevision. Despite the
of
formulae,
City.
President
1953
improvement of statistical knowledge,
it is impossible to deduce the future from
statistics of the present, or to infer it from
records of the past. Only those who adhere
to a mechanistic view of history and human
behavior, or who are enamored of forecasting
Lawyers Club,
115 Broadway,
New
York
Carswuii
J.
column
our
great
meeting in the
sociation
Furloughed
in
tions
ex¬
assemblies
the Board added,
stricted
ers
the Economic
from
turn
we
year, we
luncheon
,
December, 1952.
operations declined
December
in
under
New
Advertis¬
cial
slight further decline in Jan¬
a
the
"As
Finan¬
York
A current report from the Federal Reserve Board stated that
industrial production experienced
the
of
in
appeared
following substantiation from
elections
nual
containing
"The Persistently Sad Status of Forecasting" had gone to press,
there
An¬
Trust Co.
a
on
Bankers
of
before.
year
5
•»
H. J. CarsweSI Heads
~nS
The
(5tt)
:
Blair, Rollins & Co.
Incorporated
Grimm & Co.
page
37
The Commercial and Financial Chronicle
AJV
6
.
.
Thursday, February 4, 1954
.
(570)
of what we did not long
That is simply expressed. We
a fairly protracted
business spree in which we over¬
quences
ago.
Consumers Can Call
Turn in Business
By W. W.
President,
went through
New York City
in
overborrowed
they
Revealing air-conditioning as "a billion dollar industry," Mr.
Ramsey describes different types of air-conditioning equip¬
was
to
order
ment, and discusses their potential demand; their sales record;
purchase current satisfactions with
future income. In eight years from
the close of World War II, con¬
sumer
debt increased from $5.6
the "human equation" and "mass
psychology" as factors in business forecasts, Mr. Townsend
asserts the nature and extent cf current business adjustment
will be determined, not by statistics, but by what is in the
mind of consumers during the next few months.
Holds we
have gone through a protracted business spree, in which there
was over-production, over-spending and over-borrowing to pur¬
chase current satisfactions with future income. Sees an inven¬
tory log jam, and concludes "if John Public becomes appre¬
hensive regarding his own job, he will pull in his horns so far
as his consumer spending is concerned."
attention
Calling
spend
to
ness
President, Worthington Corporation
public's willing¬
so great that
the fact that the
TOWNSEND*
Townsend-Skinner & Co., Inc.,
£y IIOBART C. RAMSEY*
produced, particularly in the case
of consumer durables, in spite of
to
and their growth
entering
competition will become continually keener.
and instal¬
billion to $28.2 billion
ducer
billion. In spite
proximately $22
Concludes growth
industry will depend upon individual pro¬
ability to keep abreast of developments in engineering
and technical design.
and survival of the
from $2 billion to ap¬
ment debt
s
fact, at the end of 1953
there were at least half a million
that
of
which
during
automobiles
unsold
manufactured
been
had
that
and no one knows how many
been
taken in trade — and the same
year
unsold used cars which had
factors. Holds air-conditioning industry is
boom phase which is expected to last 10 years, but
a
In the year just ended the airconditioning
industry has
been
calling itself, with some justice,
a
billion-dollar
industry.
Esti¬
p r
applied to most con¬
durables, including washing
situation
There have been
only equation which no one will
ever
solve
with
any
kind
of
con¬
many
so
flicting opinions about the current
economic outlook that it might be
formula and the study of how we
only applica¬
other —
which is one way of describing
Economics — has in it altogether
too much of mass psychology to
make accurate calculations pos¬
ble
sible.
well to make
ment
simple state¬
very
this
in
h i
h is not
c
at
but
present
which
ways
al¬
always
will be applic¬
able
at
any
S p e a king
figuratively,
"tomorrow"
what
of
Townsend
W.
W.
"yes¬
somewhat
adjustment
every
done with
itself to
or
have
whether
be
plain
for worse—has fed on
the
actual outlook is what the public
believes that outlook to be, for the
simple
very
tions,
that their ac¬
that belief, arfe
reason
based
on
largely responsible for bringing it
between
the
1929
values
of
collapse
1929
prices
nearly 90%
the
on
York Stock Exchange, was
New
touched
off by a match, consisting of
'billion
of
What
loans.
brokers'
$8V2
happened in the next three years
was
comparable
The
match
in the
to
forest fire.
a
it
started
but
its part
ultimate conflagration was
The
reason
a
is
He
New
New
The
the
most
evidence
of the
York
are
the most frequent and
comprehensive factual
of what is in the mind
public and from them it is
simple to ascertain whether
general attitude is confident
or apprehensive. If it is confident,
business is on the upturn; if it
their
for their differ¬
apprehensive, busines will de¬
is
cline and savings will grow.
End of
a
Protracted Business
Spree
That
Title
term
us
outlook
is
for
the
circumstances—and unless
further into trou¬
want to get
will
ble—we
production
on
consumption which was rep¬
1953
by consumer borrowing
that source of business
resented
because
of
crease
"
City of Philadelphia
and
Philadelphia School District Bonds
as
of December 31,
1953
Now available for
Write
for
of
distribution
what
Incorporated
Lancaster
How
doing today?
Public
John
The answer to
equally
simple.
becomes
appre¬
is
question
•
Atlantic City
to
dict
growth
to
a
To
stand these figures
first
examine
by
it is
the
under¬
necessary
four
air-conditioning
of
types
bil¬
$5
year
1963.
Hobart C. Ramsey
to
pre-
ment. These are:
basic
HP, including both window-sill
console
and
of
Unit,
and
without
or
which
to
element
may
heat
a
generating
be attached;
Year-Round
Unit, of 2-3-5
Packaged
which can be
ductwork;
HP,
2-15
with
used
units;
Commercial
The
or
last
that
future
consumer
ac¬
growth
Since 1950 it has entered on the
steep growth curve typical of new
under favorable condi¬
industries
For
the next
their
influence
and
stability.
I
Potential
(A)
Demand
:
Air-condi¬
Industry:
By
tioning was first introduced as ah
necessity
for
certain
industrial
such
processes,
textiles,
as
tobacco, and printing, where it is
important to control air tempera¬
tures
and
humidity and to re¬
move dust from the air. It proved
of
value
immense
dependent
industries
in
10 years
on
number
pendent to
conditioning
industries
of
some
bio¬
de¬
degree upon air-
this
for
purpose
is
steadily growing, and it now in¬
cludes the following:
Ammunition, j
and
candy
con¬
fections, cereal and food products,
film, leather, paper, pharmaceu¬
plastics, printing and
lithography, textiles, tobacco, air¬
craft components, cameras, com¬
munications,
electronics,
optical
goods,
vitreous ware,
precision
equipment,
blast furnaces,
dye
it is
explosives,
works,
heavy
gases,
rubber
anti¬
biotics, bakeries, biologicals,
breweries, distilleries, and meat
packing.
chemicals,
There
rayon,
also
is
large
another
of
industries,
including
petro-chemicals, in which cooling
or
refrigeration is required as
group
part of the manufacturing process.
Equipment for these applications
in
is
many
cases
identical
with
components of large airconditioning systems, and is made
the basic
by the same manufacturer.
The
of
use
air-conditioning in
manufacturing plants and labora¬
tories led to the discovery that
dry air is good for
well as for products.
Furthermore, while it is impor¬
cool,
clean,
people
tant
ceptance.
tions.
types
in the field, and the
will
ticals,
Residential
llk HP, in which
definite
won
the
Growth Factors:
factors
The
2
1954
chemical and
equip¬
logical laboratory work.
RoomJCooler, of less than
The
industry
as
for a select group
it is important to
only
products,
people.
Air-conditioning
in
of
all
factories
has been shown to reduce
fatigue
predict a continuing ex¬ and thus promote efficiency and
pansion
of production capacity reduce accidents; reduce sickness
because
some
of
his neighbors
and merchandising effort in this and therefore absenteeism; make
have lost theirs, he will pull in
field. Ultimately we expect air- the plant a more pleasant place
his horns as far as his consumer
conditioning equipment will come to work in and thereby reduce
spending is concerned and if there into
general use throughout the both voluntary absenteeism and
are
enough individuals who be¬
nation, and every > modern struc¬ labor, turnover; and in all these
come
apprehensive, the situation ture will be air-conditioned.
ways to reduce production costs.
could get quite serious.
The rea¬
It would probably be premature
Some time before this point is
son
for that is also quite plain.
reached, the industry will
in¬ to say that air-conditioning is a
The government can restrict and
evitably experience the pains of "must" for all new plants planned
restrain John Public in his en¬
over-crowding; and a consider¬ or under construction this year.
thusiasm.
It cannot induce that able
readjustment will
be re¬ However, it is certainly a "must"
enthusiasm
and,
specifically, it quired when the expansion period for all plants and manufacturers
cannot make a man who is appre¬ ends.
yvho
aspire to be regarded as
hensive
spend
his
money
as
These
considerations are gen¬ "modern."
his
regarding
own
as
yet,
has
that
become
this
we
safe
to
job
appre¬
widespread
if it does not the slow-down,
must experience as the
of
and
eral
affect
a
elementary; they also
far distant to
future too
consider here. The purpose of this
is to analyze the available
in such a way as to show:
paper
data
(1) Potential Demand: where
today's huge demand for air-con¬
yesterday's excess pro¬
duction, could be mild and short.
ditioning
equipment is
coming
In fact, we could be well out of
from; why the potential is so
this adjustment before 1954 has
come
PHILADELPHIA
•
consequences
are
hension
STROUD & COMPANY
Pittsburgh
the
did yesterday.
they be modified by what we
result
•
for
we
can
close,
your copy
able
an
much
So
of
and
Allentowir
conse¬
fashion¬
come
up
(3)
of companies
be¬
the cooling unit is either added
inventory log jam
on
to the heating unit or com¬
may be mild and not widely felt,
bined with it in one package; and
but they are definite and ines¬
'Central
Station equipment for
capable. They are not only less
large commercial and ' industrial
production but also less employ¬
structures.
ment, less wages, less earnings—
Overall estimates are comprised
both gross and net — and less
dividend expectancy, in the case of the costs of essential equip¬
ment
plus such installation costs
of those industries which are af¬
as
ductwork, plumbing, electrical
fected.
equipment and frequently struc¬
In this particular instance, the
tural
alterations.
They lift this
industry most affected by over¬
industry into the billion-dollar
production is the automobile in¬
bracket.
dustry, which normally consumes
Making all reasonable allow¬
20% of our steel, 70%
of our
ances
for optimistic inflation
of
rubber and 70% of our glass. The
these statistics, it is nevertheless
effects, therefore, of a slow-down
clear that air-conditioning is now
in this industry could be felt not
big business, and is destined to
only in Detroit but also in Akron,
become
bigger
still.
After
50
Toledo and Pittsburgh.
years of relatively slow develop¬
ment
interrupted by depression
What If John Public Becomes
and war, air-conditioning has at
Apprehensive?
which
•
secondary
tthe
Now,
quences
though he were not. Fortunately,
the banking figures do not dis¬
a
i
New York
and it has
the
outlook for
the
and
billion,
$1.75
lion
1953
than
more
The
1952.
hensive
I
debt for No¬
consumer
vember, 1953 was about one-sixth
of
the
increase for
November,
If
Equipment Trust Certificates
The in¬
trickle.
has dried up to a
conse¬
Appraisals
to cut
until con¬
sumption can catch up. We can¬
not be
assured of that part of
back
that
Semi-annual
have
simply
to
of
performance
by types of products;
whole
billion
easily remedied with the res¬
Under ex¬
isting
we
preliminary discussion
back to the original
thesis of this talk, that the near-
Mr.
State
figures
very
an
by
bank
the earliest,
Townsend before
Association,
City, Jan. 28, 1954.
York
has
claim for consideration.
dealing with advance in¬
brings
the
conse¬
simple
analyst
bank-figure
formation.
exact science out
which is impossible
because the human equation is the
address
are
one
of Economics,
♦An
secondary
relatively
to
is
The
only
of
ing to make
we
matter.
problem of the economists
the
week,
every
at the primary conse¬
of mass psychology and
the argument from primary con¬
quence
opinion—lies in another
simple fact. Most of them are try¬
ences
take the evidence
we
looking
infinitesimal.
—and
If
banking figures, which are
published
1932, which in
and
clears
the track of the rabbit in
as
snow.
of the
quence
entire
the end had wiped out
of
the
sequence
to pass.
The
Ninety percent
is check currency.
Every one of those checks
certain extent; and
a
is
do
we
through some banking institution
and leaves a trail behind it as
ever
it
money.
of that money
differently,
we
experienced—and
for better
everything
practically
terday," modified to some degree
by what we are doing "today."
Stated
was
for
from
almost
$1
to the one
into trouble in 1937,
although the combination of cir¬
toration of confidence.
in
industry
a
Sales Record and Forecast:
(2)
the
range
which got us
most
either because he should do
it or because that is what he did
the last time. On the other hand,
will expe¬
rience the re¬
did
as
log jam similar
tory
world,
do,
we
we
dryers,
electric ranges,
cumstances was somewhat differ¬
unpredictable factor in the
which is John Q. Public.
He may or may not do what the
economists believe he is going to
given moment.
sults
refrigerators,
television sets and
radios. To a minor degree we had
succeeded in creating an inven¬
machines,
demand;
1953
sales
the
limiting factors
actual effective
what
the
and
reduce
may
oduction
and
The
nature
of their business ent. In that earlier year the pub¬
compels economists to argue from lic had curtailed its spending and
cause to consequence.
In the mid¬ the disparity between consump¬
dle of that argument there sits the tion and production, while severe,
has been
and
each
with
business
do
nnection,
c o
w
a
sumer
of
mates
great;
mined
to
an
end.
The
undeter¬
variable in the entire cal-
♦An
for
ence
address
Third
Analysts,
Continued
on
page
37
1954.
by Mr. Ramsey, prepared
Regional Confer¬
of the New York Society of Security
the
Inc.,
Eastern
New
York City, Jan. 29,
Ultimately competition will force
manufacturers to adopt this
all
method of cutting
ess
costs; the proc¬
be hastened by improve¬
in air-conditioning equip¬
may
ments
ment
to
lower
sion
costs and
increase
by a business reces¬
sufficient
to sharpen com¬
efficiency,
or
petition.
(B) By Business and Commerce:
Air-conditioning moved into the
commercial
field
in the
1920's
Continued
on page
42
Volume 179
Number 5296
.
.
The Commercial
.
and Financial Chronicle
(571)
7
I
and
Business, Not Government, Has
Responsibility for Prosperity
we
Good Lord
Now
it
marks
fullest
into effect.
ing
economists
met in
state
of
this
Washington to
of
the
country
mention
fact
that
do
not
even
in
prosperity,
They studied
almost always IV2 to 2 million
unemployed who are in the process of changing jobs.
These people may be
moving
able
are
avail-
index
business
of
from
ac-
tivity,
one
city to another. They
be looking for an opportunity
which is better suited-to their
and
when
may
they
had gone over
particular skills
all
will
their
charts
and
tables,
or
tastes, and that
provide better pay
therefore
and greater security.
Or they
have been laid off, for
and
may
one reason
had
peered
or another.
into
the
But they can — and do — find
new iobs- The normal turnover
ture
fu-
through
their'
not
be
history.
the
third
or
thpm
them
that
best,
1954
in
year
only be
our
the
sec-
according
to
their calculations.
have
actly
fate
to
were
the
known
ever
what
I
would
than
worse
is
not
regard
death.
believe
alarmist
♦
next month.
Yet if
that
a
we
one-half
even
talk
ex-
as
we
Meanwhile, of
be
be
course,
their unemployment insurance not
only helps to cushion the financial
hardship,
but
often
encourages
them
to risk making a change in
hope of bettering themselves,
the
Now the prospect of
struggling
through a year that is only the
second or third most
prosperous
we
So
the
ment
truth
today
irreducible
is
is
that
unemployclose to the
very
minimum
which
nor-
tb
the
Indians;
I
and
think
certctfn
which
a
the
to
by
are
posare
in
this country
gain political ad-
creating
-of recession.
can
recession, there
groups
stand
vantage
these
American
the
illusion
Generally speaking,
the
which
groups
have
vested
interest in "Big GovernThey are people who believe in* an all-powerful anS almighty State. They are the "outs"
a
ment."
who want to get back in.
And since it is an old and henrule
ored
of
politics
that
War
.
since
years
II
the
have
end
been
of
among
Moreover, I think we should not
forget that the number of people
everv
decline
that
in
occurs
do have jobs, and who are
work, is about 3^2 million high-
today
er
than
it
was
tion
is
getting, out
ot
handSitthai
nana, tnat
private
enterprise
cannot
cope
with it j and that Government must
therefore steo in
>
Now
tactics
L
one
let
us
•
example
look
for
tell
that"there
us
a
of
these
moment
ThealaZfsts
unemployment
are
?Hhuiou°nntrPveLSdav
this country today,
in
more
and
and
the forces of depression.
State
„ton,
by
Mr.
very
Fairless
at
the
chZSL-^Tcommer^ wS
Dei.,
Jan.
28,
1954.
;
upon
spent like paper.
was
In addition
huge public works program,
a
thousands of leaf-raking, shovelleaning, and boondoggling projects
undertaken.
were
that
the
sibly do
gut
and
jn
was
it
it
there
jobless
pos-
bring
prosperity;
unemployment,
end
War'll
World
were
still
and
men
country
nothing
could
left undone,
didn't
didn't
1939—when
gan
And
government
who
QV2
seeking work.
in
this
desperately
That
17%
was
total civilian l&bor force
of
So
hindsight, and
1
?lone
xty
little
a
com
j
fhaf
'
success
or
in
1947
at
was
failure
of
depends
chiefly
people themselves —
everybody in America.
to
market
such
as
other
new
cellophane,
thetic
rubber,
revolutionized
the
air
these
products
faith
alone.
expenditures
these
this
of
And
jobs
for
not
employment is
a
our
—
The only
exist—to generate
account
wealth of
a
for
power
And
we
times
company
itself, and faith in
America, our whole
has been strengthened.
in; but the thing that makes
America go—and that always has
of
new
and
smaller
businesses have been created as a
direct result of these discoveries.
Thousands of
icans
new
more
important to the fu¬
Moreover, these private invest¬
ments
live
better
and
more
more
devise
new
trying to do a little more
themselves, a little more for their
families, and a little more for
each generation -r- every fellow
trying to improve his own position. The cumulative effect of all
that work, by all those people, is
the thing that has made America
what it is today."
And President Eisenhower, of
new
produce more, to
earn
more
first
only
step;
it
even
higher
at this time
the
current
two
Steel, itself,
$830 million
cilities, and
postwar
to
been
and
will
merely
represents
alone.
year
United
years,
has
into
even
- you
won't
though its great
program has
practically
completed,
Our
...
„
..
..
,
.?pn,1 PrL
j-Ji
nf
So it might be said that indus¬
try is betting its shirt that there
won't
industry meets each year in its
effort,Jo keep our economy grow¬
be
a
depression.
But
I
it another way. I would
would put
that industry is merely con¬
tinuing—as it always has—to pay.
say
ing.
The discoveries made in the
laboratory are only the blueprints
of prosperity; and they have still
Continued
analysis of the 1953 year-end reports of
outstanding banks is completed and
t
°
.1 j
r
of
,
spend,ng whiehwouldMme to
■
A copy
will be
sent
free
on
now
a group
available.
upon request.
as
billion this year. In
other words, they Propose another
'chasing' „ea"h
S
much suflerine among
0U1 Pe°P^*
*
so many
;
Gentlemen, if
We deal actively
buy
of
our
nafiftnal
rn:n
nallonai ruin*
^"forte
whic^u ieads is
.
.
.
tonight, to
read the inscrutable future, I pro-
Pose that we turn our eyes, for a
moment,
in
small blocks at
net
prices.
national.-sup-
^
to
or
-•
wholly exhausted, the American
people wil1 take a long' cold look
desUnatn
in bank shares and are prepared to
sell in large
or
the opposite direction;
Blyth & Co., Inc.
New York
Boston
•
Louisville
•
San Francisco
Springfield
•
•
Detroit
Sacramento
•
•
Chicago
Philadelphia
•
Minneapolis
Fresno
•
San
Los Angeles
•
Pittsburgh
•
•
Jose
•
Spokane
•
it
still spend another $300 mil¬
in this way, this year.
Bank Stocks
three
the
States
expansion
they
need
In
put more than
productive fa¬
want?
.Well
than
last year.
billion dollars in the next,
for this purpose; and
steel
past
small part of the costs that
a
a
years
the
itself is
and
be
two
lion
But research in
abandoned.
and on, year after
industry will
spend
three-quarters of a billion during
to buy more.
the
will
were
spend
production techniques
machines which have
workers
on
Harlow Curtice has already an¬
of
our
way
of life.
American industry
than $3 billion 011 re¬
American
then
and
nounced that General Motors will
Much of this money
the
creation of new
into
and
all
for
they
they
search alone.
enabled
people,
while
a
Last year, they reached an
peak of $28 billion; and
during this first quarter of 1954,
doing — to provide not
only for the steady growth of our
economy,
but for the constant
effort
million
for
is
year,
plant
not just
all-time
So there, I think, is a fine ex¬
ample of what business has done
spent
are
year.
exist at all.
and
new
ment
They, too, go
comfortable lives because of these
—
in
and equip¬
one-shot, stop¬
gap, emergency devices to be tried
jobs have been
millions of Amer¬
up; and
now
and always will—is the individual
guesses.
the
ture prosperity of this nation than
the usual public works
program
could ever be.
the future of
serious threat to
do
new
people. So the dollars
spent in this way were many
The authors of this
what action
they
all
American
in
went
can do is
fertile field to work
deception are already clamoring
loudly for immediate government
action.
who
will go on and on—as
long as
even
attempt to make it
that the recent rise in un-
our economy.
only
provide
those
calculated
appear
so
the
work, but they
productive facilities which
there are the simple facts;
they . have
been
distorted
greatly in what seems to me to be
a
sum
performed
created
du Pont's total
sales; and because
had
equipment
did
millions
condition¬
products, new discoveries, and
new jobs.
A lot of it also went to
150
that
purchasing
for nearly half of
a
minds cannot
really
it at all.
But it is
our
last year spent
nearly twice
much
for
new
plant and
ness
to pronounce.
Today
fact, $15 billion is
potatoes, indeed, when you
stop to think that American busi¬
which
attempt
roads
new
badly need.
comprehend
ing industry, Lucite, Butacit'e, and
a
long list of plastics, the 1 names
of which I would not
we
small
discoveries
gas
magnificent public
beautiful parks,
many
whole lot of fine
a
In
neoprene syn¬
freon
some
vast that
spending additional
develop, perfect, and
to
us
that
and
new
thing that government
of
give
buildings,
and
things.
to provide
a
certainly provide several million,
jobs and it would
undoubtedly
difficulties,
other
many
them if necessary to prevent
recession. Now $15 billion
would
use
a
things which otherwise would not
.
Secretary, of the Treasury,
George Humphrey, in a little talk
which he made recently, has put
about as well as anyone I ve
beard yet. He said:
"The
those
what
also
was
can neit>ler create Prosper- opened
depression. Only
American'neonle themselves
H
and
wonderful
economy
nor overcome
a
of
Hundreds
T toink^^LT^vernmen't
thJ_
than
the government has
$15 bil¬
lion worth of public works
proj¬
ect on the
shelf, and that it will
better
no
finally
discovery of nylon, orlon,
one
out of every six.
man
of
truth
be-
million
women
were
the
gram of research which led
to the
millions
new
power for our workers.
that, as you know, my
friends, takes money—real money.
Today we are told, for example,
can
Company was spend¬
ing millions of dollars on a pro¬
It,
customers
jobs and
And
looking to Washington to
dacron
*
followed, defdeficit. Money
earning
our
new
So
So instead of trying,
address
piled
was
over¬
for
but
than
theTv
the way
they tell it, that does sound
♦An
great
a
products
provide the
ity:
Pthey'hopeTpT^uade The
way
'
al
who
voters
don't change horses in the middle
of prosperity, the natural inclination of these groups is to exaggerate
our
think
of
bail them out of their
the du Pont
businessmen, laborers, farmers
World
recognize, I think, that
real
produce
con¬
of
—were
level of recent years.
the start of this postwar prosper-
no
to
part
to
right here in Wilmington
all during the
depression. Twenty
years ago, while many of our
peo¬
ple—and some of our businessmen
Last
see
the
mory by
sibly want
the
on
and
new
on
betterment
politics of our present situation
than by the economics of it.
We must
eifort
open
government
statements
upon
at
-
cents;
come
to
two
going
upon
face squarely up to tne fact that
of this depression talk that
hear is inspired
while
59
no
can
our
The
most
we
our
to
are
transferred into the plants
facilities that turn out the
that
I
economy
of
when WeTought to
come
gold content of
doors
*'
be
and
supply.
mally prevails in peacetimes; and
it is actually below the
average
quoted in the press, we could only the most
prosperous that America
conclude that we are sliding into
has ever seen; and certainly no
a terrible
depression—that Amer-i one—so far as I know—has been
ica's Golden Age is
past, and that complaining about any lack of
our only chance of salvation
is to jobs up to now.
But month in
board the first train for
Washing- and month out, during this entire
ton and
beg the Government to period, there has been an average
run our business for us.
of 2lA million persons out of work,
Well I, for one, am not
quite And at the high point there were
ready to give this country back 4 V2 million.
*
time has
un¬
which
Now
went
of inflation that would
our
[oncem's woi-lfiast month'or who* will
last montn or wno will
best
It will
1934
whose
illustration
years
crystal
amnntf
among
was
20
the law
reduced
was
year
to
enterprise and ambition, but that
enterprise and ambition are qual¬
ities
it
un¬
wave
not
Benjamin F. Fairless
of
was
In the years that
times of "full employment" there
every
Act
That
government
the
survey
nation's
>
the
they
pass
just
was
Reserve
scious
icit
But
to
his¬
that
and it represented a bold and
..
indeed.
it
see,
dollar
.
.
allowed
der which the
public works projects and outlays for industrial
plant and equipment to maintain employment.
serious
think
system
im¬
an
American
not
note
this
strive
thas coming Saturday that the
Gold
and incentive.
the outstand-
in
do
same
when he said that
government can
to maintain
an
economic
so
all.
us
course, struck much the
in his Annual
Message
even
ago
and looks to
ond
be
You
Says present
Administration has already laid groundwork for
prosperity by:
(1) providing peace; (2) stabilizing the currency, and (3)..
returning competition to a free and open market. Warns a
heavy Federal deficit would mean another round of inflation,
will
I
responsibility for prosperity or recession
rests squarely upon business
and industry itself, and rot
on the
government, which can do no more than provide the
A few weeks
ago,
the
though I doubt that
any group, anywhere, will partic¬
ularly want to celebrate it.
Mr. Fairless declares
.
f
that
wisdom, has
anniversary of
event
noticed,
of
which
happens that this week
and
should
cf opportunity
little
a
with
in His
the
portant
tory;
States Steel Corporation
Asserting most of depression talk is inspired more by the
poiilics rather than by the economics of our present situation,
measure
use
generously endowed
By BENJAMIN F. FAIRLESS*
Chairman of the Board, United
that
20-20-hindsight
•
Seattle
Cleveland
•
Pasadena
*
Oakland
•
Portland
•
Indianapolis
•
San Diego
Eureka
page
,24
The Commercial and Financial Chronicle
8
1954
Thursday, February 4,
...
(572)
giv'ncf
M^sa^hupoOs—Bookie*
financial
up-to-date
Commonwealth—Tyler
the
on
Company,
&
statistics
Inc.,
11
Traders
Philadelphia
Annual Dinner on Feb. 26
Investment
High
Assn. of
Street, Boston 10, Mass.
Dealer-Broker Investment
Recommendations & Literature
is
It
pleased
understood that the firms mentioned will he
to send interested parties the following literature:
Micromatic Hone Corporation—Bulletin—De Witt Conklin Or¬
ganization, 100 Broadway, New York 5, N. Y. Also available
is a bulletin on Atlas Plywood Corporation.
National
Company
Gypsum
Analysis in
—
current
issue
of the
Association of
Philadelphia to be held Friday,
Feb. 26, will be preceded by a
member
guest
luncheon at 12
noon.
Reservations should be
made with Willard Rice of East¬
man,
Dillon & Co., or Rudolph
"Gleanings"—Francis I. du Pont & Co., 1 Wall Street, New
York
In the same issue are data on Spencer Kel¬
Suggestions.
Also avail¬
5, N. Y.
able is
a
memorandum on Okonite Corp.
Carey Manufacturing
Philip
-
Sons and a list of Switch
logg &
—
Circular
—
Filor, Bullard &
Smyth, 39 Broadway, New York 6, N. Y.
Reports—Blyth & Co.,
Stocks—Analysis of 1953 Year-end
Bank
York 5, N. Y.
Inc., 14 Wall Street, New
ures
120
York—Comparative fig¬
Companies of New
and Trust
Banks
1953—New York Hanseatic Corporation,
Broadway, New York 5, N. Y. Also available is a bul¬
of Dec. 31,
as
letin
the Bond Market.
on
District Bonds
is
Electric
Utilities—Bulletin—H. Hentz
New York
-
Street,
Broad
South
Incorporated,
Also available
Philadelphia 9, Pa.
semi-annual appraisal of Equipment Trust
123
Certificates.
& Co., 60 Beaver Street,
4, N. Y.
Stocks—Bulletin—Eastman, Dillon & Co., 15 Broad
Street, New York 5, N. Y.
Investment Facts About Common Stocks and Cash Dividends—
Tabulation of stocks on New York Stock Exchange paying
dividends from 25 to 106 years—New York Stock Exchange,
Iligh Yield
New York
Co.—Memorandum—Hirsch & Co., 25 Broad Street,
COMING
4, N. Y.
Development Corp.—Memorandum—Fulton, Reid & Co.,
EVENTS
Cleveland 14, Ohio.
Inc.—Review—Golkin & Co., 61 Broad¬
Union Commerce Building,
River Brand Rice Mills,
way,
Riverside Cement
Company—Analysis—ask for report T-31—
Co., 10 Post Office Square, Boston 9, Mass.
Universal Match Corp.—Memorandum—C. E. Unterberg, TowLerner &
Co., 61 Broadway, New York 6, N. Y.
Webster Chicago Corp. — Memorandum — Link, Gorman, Peck
Co., 208 South La Salle Street, Chicago 4, HI.
analysis
of
Broadway,
New York 5, N. Y.
National
performance
market
Notes
NSTA
•,
Feb. 15-17, 1954 (Washington,
*
Bureau,
Quotation
up-to-date com¬
NATIONAL SECURITY TRADERS ASSOCIATION, INC.
Phillip J. Clark, President, National Security Traders Asso¬
ciation, Inc. announced the appointment of the following Commit¬
tee Chairmen, after the recent successful meetings in Chicago.
Investment Traders Association
of
*
May 7, 1954 (New York
Securities
Estate
for
1954
Data
—
Association of
annual
dinner at the
York
New
Co., Incorporated, 150 Broadway, New York 38, N. Y.
Baker &
*
Products
Metal
*
&
ers
May 12-14, 1954 (Boston,
#
Edward
H.
R. Victor
Welch
Graham
Mosley
Walker
tion
Corporation
of
& Newsom, 1309
Citizens
&
Utilities
Federation
Co.—Memorandum—Carl
M.
Loeb,
Rhoades
June 9-12,
Edison
Co.
—
Memorandum
—
McDonnell &
Co.
of Canada Annual
Reinforced
25 Broad
Food
Pipe
Stores
Ltd.
National Security
&
Co.
453
Hotel
Claridge.
Sept.
23-25,
Spring Street, Los Angeles 13, Calif.
Machinery
&
Chemical
Corp.
Memorandum—Kidder
—
Henry
Ludwell A. Strader
Jerome
Oetjen
F.
Tegeler
How to Understand Slocks Better—In the current issue of "The
Exchange"—subscription $1.00 for 12 issues—Department C,
The Exchange Magazine, 20 Broad Street, New York
5, N. Y.
Hudson's Bay
way,
Co.—Memorandum—Goodbody & Co. 115 Broad¬
New York 6, N. Y.
Interchemical
Corporation
—
Analysis—Bache & Co., 36 Wall
Street, New York 5, N. Y.
International Petroleum
South La Salle Street,
Lehman
Corporation
—
Co., Ltd.—David A. Noyes & Co., 208
Chicago 4, 111.
Memorandum
—
Ira
Haupt &
Co.
-
Ill
'
Louisiana—Analysis of bond structure—Scharff & Jones, Inc
219 Carondelet Street, New Orleans 12, La.
Available—Circular
Advertising—Harold
B.
Smith, Pershing & Co., New York,
New York.
(Minneapolis,
Board of Governors of
of
tion
Convention—Edward
H.
Welch, Sincere ,& Co., Chicago,
111.
Legislative—R. Victor Mosley, Stroud & Com¬
pany, Incorporated, Philadelphia, Pa.
Membership—Graham Walker, Joseph McManus & Co., New
Corporate
Stock
York, N. Y.
Municipal—Ludwell Strader, Strader,
meeting.
Nov.
28-Dec.
3, 1954
Convention
at
Hollywood
Hotel.
Oetjen, McGinnis & Co., New York,
New York.
Publicity—Jerome Tegeler,
Dempsey-Tegeler & Co., St. Louis,
Missouri.
Continued
on
page
37
0V)R
on
INdfy
SECURITY ANALYST
REGISTERED REPRESERTATIVE
Chemicals Corporation
Seeks
position with progressive
constructively.
men.
Troster, Singer & Co.
HA 2-
2400
Members:
74
N.
Y.
Security
Dealers
Association
Trinity Place, New York 6, N. Y.
376
Has
serviced
member firm.
large
staff
of
Writes
customers'
Growing clientele.
Box
NY 1-
(Hollywood
Fla.)
Investment Bankers Association
Taylor & Co., Lynch¬
burg, Va.
Attapulgus Minerals &
Associa¬
Firms
Exchange
&
Public Relations—Henry
Broadway, New York 6, N. Y.
1954
the
Minn.)
Peabody & Co., 17 Wall Street, New York 5, N. Y.
-
Tfaders Asso¬
ciation Annual Convention at
Memorandum—Fewel
—
(Atlantic City)
Sept. 22-26, 1954
Corp.—Bulletin—Capper & Co.,
Street, New York 4, N. Y.
Fitzsimmons
South
Plastic
Convention at
Jasper Park Lodge.
120
Broadway, New York 5, N. Y.
Erie
1954 (Canada)
Investment Dealers' Association
Shoe
Corporation—Analysis—Strader, Taylor
Co., Inc., Peoples National Bank Building, Lynchburg, Va.
Detroit
Finan¬
of
Analysts Societies Conven¬
tion at the Palmer House.
cial
Main Street, Dallas 2, Tex.
Co., 42 Wall Street, New York 5, N. Y.
Craddock-Terry
&
Bakeries, Inc.—Analysis—Sand¬
(Chicago, III.)
16-20, 1954
May
National
ers
Associa¬
Firms
Exchange
Stock
meeting.
Circular—
—
Troster, Singer & Co., 74 Trinity Place, New York 6, N. Y.
CampbeJI-Taggart Associated
Mass.)
Board of Governors of
Company—Detailed bulletin—Gart-
Chemicals
Investment Bank¬
Association annual convention.
Texas Group
ley & Associates, Inc., 68 William Street, New York 5, N. Y.
Attapulgus Minerals
(Dallas, Tex.)
May 9-11, 1954
CF-24, Major L. L. B.
Angas. Inc., 480 Lexington Avenue, New York 17, N. Y.
Also report No. 303, Prepare Once More to Scurry, also $2.00.
Time—Report No. 302, $2.00—Dept.
*
City)
Security Traders
Waldorf-Astoria.
10 issues—Amott,
on
Why Government Cannot and Will Not Stop This Recession in
American
annual outing.
Group
Stocks—Comparative tabulation—G. A.
Co., Inc., 70 Pine Street, New York 5, N. Y.
.
Dealers
Municipal
Louis
St.
.1
(St. Louis, Mo.>
29-30, 1954
Apr.
Public Utility Common
Saxton &
Philadelphia annual midwinter
Franklin HoteL
dinner at the Ben
York 4. New York.
Real
1954 (Philadelphia, Pa. )
Feb. 26,
a
46
Inc.,
Stock
of
tion
,
of AssociaExchange Firm*
Board of Governors
*
f
13-year period—
Front Street, New
over
the
at
Club.
parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks
used in the National Quotation Bureau Averages, both as to
and
meeting
43rd
Mid-Day
Chicago
of
Club
Bond
-
meeting.
Year-end
—
Over-the-Counter Index—Folder showing an
yield
(Chicago, HI.)
Feb. 11, 1954
Y.
comparison and
17 bank stocks—Laird, Bissell & Meeds, 120
Stocks
*
As¬
sociation 30th annual winter din¬
ner at the Sheraton Plaza Hotel.
Securities Traders
Boston
bin
Kux, American
Fifth Avenue, New York 1, N.
Bank
City
York
Mass.)
11, 1954 (Boston,
Feb.
annual
Clearing Deals—Booklet—Lacy
of
Field
Investment
In
New York 6, N. Y.
'
Nile Corporation, 350
New
Hampshire—Review—Ira Haupt & Co.,
5, N. Y.
Japan—Circular—Yamaichi Secu¬
rities Co., Ltd., Ill Broadway, New York 7, N. Y.
Japanese Automobile Industry — Data in current issue of
"Weekly Stock Bulletin"—The Nikko Securities Co., Ltd.,
4, 1-chome, Marunouchi, Chiyoda-ku, Tokyo, Japan.
they
are
Broadway, New York 6, N. Y.
Oil
New York
&
Sherrerd. As
limited
should be made early.
reservations
Opportunities in
Investment
Mechanics
Ill
Pure
Rand
City of Philadelphia and Philadelphia School
—Semi-annual appraisal—Stroud & Company,
Sander, Butcher &
Corporation—Analysis—George K. Baum &
Company 1016 Baltimore Avenue, Kansas City 5, Mo.
Pickering Lumber
Public Service of New
30th Annual Dinner
The
Investment Traders
of
J-128, "Commercial & Financial
25
Park Place, New York
Chronicle,"
7, N. Y.
$4VlN(£
Beach
Volume 179
Number 5296
.
The Commercial and Financial Chronicle
.
.
(573)
9
1
materials
1
The Construction Outlook
Arizona Banker Optimistic on 1954
By THOMAS S. HOLDEN*
Hugh C. Gruwell, President of the First National Bank of
Arizona, says although economic activity will be at slightly
lower level than in 1953, the present year "still
promises to be
Chairman, F. W. Dodge Corporation, New York City
Vice
moderate reduction of construction volume
Mr. Holden estimates a slight gain in non-resident
Foresees a 10% decline in residential construction
but only a 5% recession in total physical volume of
with a net dollar decrease for building and engineering contracts of 3%.
Though predicting
in
1954,
building.
in
1954,
building,
1
difficult
is
It
to
a
how
see
an
greatly
increased
While
down
production
fa¬
rapidly as
more than a
durable goods.
e m
ahead of it the job of maintaining
suffer
can
any
t
p o r a ry
setback
in
1954. The U. S.
is
economy
currently
gaining new
the
adequate defense establishment
and
at
the
time
providing
an
ever-improving standard of
living for its growing population.
same
home-market
it
1
a
t
a
week.
Basic expan¬
is
sion
factor
pop
ulafaon
growth. Since
the
end
World
been
of
War II
there
Holden
Productive enter¬
United States has
customers
51,000
S.
an
in
non¬
Since 1940 the American economy
has been doing exactly that, and
the rate of
Thomas
prise
have
30,000,-
is reasonable
to
expect that it
will continue to do
so.
The electric utilities
industry is
not the only one which plans ex¬
pansion.
The chemical industry
expects to increase its present
capacity by 75% in the next ten
years.
The country's largest in¬
dustrial corporation, General Mo¬
tors, recently announced it would
increase its capacity by 20% in
€00 babies born and the net pop¬
the next two years.
21,000,000
The newcomers have not
only been fed, clothed and housed,
but along with all those who were
In the year just closed the total
output of goods and services was
at an all-time high, even though
automotive production was at less
ulation
gain has been
persons.
V-J
before
alive
higher
joyed
During
most
at levels
was
of
have
en¬
higher stand¬
each
consumption
of
ards
Day,
and
year.
production
1953
above the peaks of
than
peak levels.
more
eight years, there seems to
continuing demand for 1,000,-
past
be
a
000 to
1,100,000 new housing starts
Increasing size of aver¬
age families and increasing pros¬
perity have already resulted in de¬
mands for larger housing units
and for dwellings of higher qual¬
per year.
ity.
Population
increase
gradually
insistent demands for en¬
creates
building needs existed at the end
the
of
trol.
con¬
later
reductions
tax
are
and
under
latter
year,
cord i
n
of
There has been
lack
a
rather
of
business con¬
fidence
among
many
people.
There is a necessity for business
and industry to meet a new era
of competition after an extended
period of easy selling.
for
slightly
of
cost
lower
tions have
living.
homes
new
high,
even
levels
promises 10, 1954, and it is contemplated
though at that construction will be under¬
than
taken
ation
still
than
the
promises
better
business
as
just
one of
year
be
to
bank
expanding program and the
National Bank
ise of
of
fice
Arizona,
Phoenix, Ariz.
and
new
con¬
additional
should add
1955
impetus
to
ress.
ward
adjust¬
Arizona, and perhaps the best evi¬
will
dence
continue
ing
of
he
1954,
among
even
added,
economists
considerable difference of opinion
exists as to the degree of such ad¬
Continuing,
"In
serted:
Gruwell
effort
toward
progress
tional
Mr.
an
a
as¬
achieve
to
balanced
na¬
budget, orders for defense
material
are
increase
is
ployment,
overtime
being reduced. Some
being felt in unem¬
and
because
aggregate
less
of
prob¬
ably will be somewhat less. The
growth in
consumer
wages
credit financ¬
ing is slowing down, and this fac¬
tor
coupled
with
decreases
in
farm income
resulting in
spending.
are
curtailment of
on
that
of
increase
dur¬
much
"though
C. Gruwell
Hugh
undoubtedly
some
of
the other side of
satisfaction of personal wants and
needs.
A buyers' market invari¬
ably stimulates competition in the
manufacturing
and
distributing
which ultimately results in
lower prices and
a
general de¬
fields
This announcement is not
an
*raith
great
faith
is
the
capital
our
to which
"Of
is
pictured
in Phoenix.
the
on
year's Annual Report.
ent
building has
but
with
Our
served
We
For these
is
likely
to
and 1960.
facilities (such
as water supply, electric utilities,
hospitals, churches, recreation
centers) will be needed in in¬
creasing numbers. A few months
ago it
was announced that the
electric utilities industry plans to
double its present capacity within
between
larger
now
Other community
ten years.
Commercial
Korean
building, freed
restrictions in
war
1953, moved ahead with a
5Q% volume increase last year and
is likely to increase further
in
1954. Office buildings, large-scale
commercial developments in cen¬
tral
urban
areas
and suburban
early
shopping centers are in great de¬
mand.
World
Since
War II
some
40,-
000,000 motor vehicles have been
produced in this country with a
net
increase
in registrations of
more than 22,000,000 vehicles. The
backlog tpf
highway needs and
street improvements
and parking facilities
need for city
and garage
scheduled
the 175,000,000 mark in 1960,
sooner, there are likely to
backlogs of demand for
presented by Mr. Holden at
Regional Conference
of the New York Society of Security An¬
alysts, Inc., New York City, Jan. 28, 1954.
paper
Third
Eastern
1953.
W.
volume
the
from
a
be contracted
to
1%
increase has
Gains
over
for)
an
our
effective
arrange¬
up
on
have strong be¬
we
do
not
state and
our
subscribe
that exists
in
the
to
in
north,
bounded
and
by Polk
First
the
At
east.
pated that
are
in the past few years.
We
hopeful the managers of in¬
dustrial businesses and others will
quickly learn how
to sell
for
four
more
it
the
is
in
this
greatest
profitably
more
goods in
a
area
given time,
we
progress
building, educational building
social and recreational proj¬
are
expected to offset by a
small margin expected moderate
declines in manufacturing build¬
ects
Texas IBA
Street
Street
time
a new
it
was
the
to
antici¬
combined bank¬
Group to
Hold Meeting in May
DALLAS,
Tex.
—
The
Association will hold their annual
meeting
May
9,
10
and
Dallas.
ojier ojsecuritiesjor sale or a solicitation of an offer to buy securities.
272,500 Shares
Southwestern Public Service
Company
Common Stock
Par Value $1 per
Share
hospitals and institutions,
public and religious buildings. A
ings,
Company has issued warrants, expiring February 16, 1954, to holders of its Common
Stock, evidencing rights to subscribe for these shares at the rate of 1 share for each 14 shares
held, with the privilege of subscribing for additional shares subject to allotment if total
subscriptions exceed 272,500 shares, all
scribed Common Stock may
as- more
fully set forth in the prospectus. Unsub*
be offered by the underwriters
as
set forth in the prospectus.
10% decline from 1953 in residen¬
Subscription Price to Warrant Holders
tial building volume
is estimated.
trends, if real¬
ized, would be a net decline of
5% in physical volume of build¬
ing. Dollar volumes of heavy en¬
gineering contracts are expected
to increase by 7%. The net dollar
decrease for total
building and
engineering contracts would be
3%. It seems quite possible that
these very conservative estimates
may
be bettered by the year's
performance.
The result of these
$22.50
Copies oj the prospectus
per
share
be obtained Jrom such of the undersigned (who
prospectus) as map legallp ojjer
these securities under applicable securities laws.
map
are among
the underwriters named in the
,
Dillon, Read & Co. Inc.
Eastman, Dillon & Co.
Blair, Rollins & Co.
BIyth & Co., Inc.
Incorporated
Thos. Gates, Jr. New
Goldman, Sachs & Co.
1
Under-Sec. of Navy
vestment
&
Co.
banking firm of Drexel
announced
Harriman Ripley & Co.
Stone & Webster Securities Corporation
Gates, Jr., having been appointed
the Navy, has
in
the
limited
1954.
as
a
general
has
partner
become
a
partner, effective Feb.
1
1,
firm
and
Smith, Barney & Co.
|
Union Securities Corporation
that Thomas S.
White, Weld & Co.
G. H. Walker & Co.
Under Secretary of
withdrawn
Kidder, Peabody & Co.
Incorporated
Carl M. Loeb, Rhoades & Co.
The Milwaukee Company
Texas
Group of the Investment Bankers
February 3, 1954
The
be
square
commer¬
and
believe
may
made."
ing Head Office and office build¬
ing would; be constructed in the
near
future.
Shortly after the
Korean
situation developed,
re¬
strictions were placed on critical
over-all
cial
feel¬
quarters
some
that the future carries many haz¬
more
than we have experi¬
the south, Taylor Street to the
for
records
teller
customers.
block of ground on North Central
estimated.
been
last year
for
mod¬
For
a
enced
building is inadequate for our
a new one was obliga¬
tory.
Dodge
PHILADELPHIA, Pa.—The in¬
to
if not
develop
in
F.
physical vol¬
ume
of non-residential building
(new floor space in square feet
Population Growth
population
reduction
and
designed to speed
Outlook
estimated
has
construction
1954
into many billions of dollars.
With
reasons
Corporation
erate
demand,
grow
much
Construction
1954
is
ards
well
needs and
in Phoenix the
novel
ing
net
ago
in
city and of the nation in general.
growth of Arizona
Phoenix, our bank-too has
grown to a point where the pres-
years
contact
located
immediately beneath the curb
You may enjoy examining
"Obviously
pres¬
some
direct
teller
a
lief in the future of
the
bank acquired
belt
with
at the curb.
cars
v.«:
and
"This
a
endless
service
this
us
their
this
It is
of
cover
It
system of mirrors and
ment
our
Office structure
Phoenix.
device.
special
me,
other cit¬
Through
and
strong
emphasis, it seems
decision to proceed
with the building of a new Head
to
'Snorkel'
a
many
is the first in
office.
compartment under the sidewalk
structure
stand committed..
we
It
made
in
last year and the very substantial
investments for adequate quarters
Avenue
the picture, promised cuts in Fed¬
eral taxes will free money for the
have
is termed
popular in
of
custom¬
serve
Phoenix
iness from
an
prog¬
o«ir
down¬
first
on
east
enables customers to transact bus¬
prom¬
These
We
ies.
to
oper¬
located
Street Just
our
and is
teller
Avenue
This device
adequate Head Of¬
quarters by
of
placed in
we
curb
a
Central
ers
is
January,
Washington
years.
our
immediately thereafter.
"In
cerned, the elimination of the ex¬
cess profits tax will place us in a
much better earning position. Our
First
ments
now gone forward to a
select list of experienced contrac¬
tors.
Bids are to be opened Feb.
The
last
"Insofar
to
building and, after the usual
preliminaries, plans and specifica¬
and altogether 1954, even
though reflecting somewhat lower
ac¬
Presi¬
dent
the
continue
to
our
Hugh C. Gru¬
well,
demand
past,
of
g
in
attainments
the
part
able
year,
way
during
the
adjustments
already
"However,
tainties.
country to date, it
trends
were
stimuli to private invest¬
spite of the gen¬
erally
favorable
factors,
some
problems of farm surpluses and
some
inventory problems in in¬
dustry. i There are, as always in
an election year, political
uncer¬
made
even
with the ever-increasing
♦A
Korea
under full
There are, in
keeping pace
is not
schools
the
was
ment.
since 1948, but
record-breaking building of new
pass
in
cease-fire
The
strong
An unprece¬
school-building boom has
been going on ever
runs
an
promise of tax reduc¬
tions in 1954 and the possibility of
rapidly increasing
population has aug¬
mented the demand.
dented
from
a
our
proceed with the desigp of a suit¬
Head Office bldg.
a new
crease
detailed
"With the lifting of restrictions
architect was commissioned to
war;
school-age
which
was
and inflation
surprising
larged and improved community
facilities.
A
backlog of school
at
was
high, although residential
building activity was considerably
below the 1950 peak. Also in 1953
8,200,000
new
non-farm
dwelling units were built in the
some
In 1953 dollar
all-time
there
as
justments."
volume of construction
war period.
Population growth always has
a
direct and powerful influence
on construction demand. Although
the
probably go
the high point in the eco¬
is evident that certain
and that is
ours
will
before
an
Reveals details of bank's
including plans for
program,
1953
nomic life of
cilities both for durable and
so
better business years."
our
expansion
ecbnomy that is so soundly based
growing
of
one
and
builoing plans could be completed
it became impossible to proceed.
Rauscher, Pierce & Co. Inc.
11
in
The Commercial and Financial Chronicle
10
Thursday, February 4, 1954
.
.
economical
would piomise a more
Atomic Powei-A Realistic
it
of
use
Appiaisal
Electric Company
in cost with present power
resource.
Foresees bewildering technical problems in appli¬
cation of atomic power to commercial uses.
eyes
are
prospects
these
still
ing before the General Assembly
of the United Nations, proposed a
object
the atom is drawing near
the
and
fairly look forward
may
.
Atomic Power
vs.
electric
of
forefront
been in
has
States
United
from
apart
respect
this
Electric
the
resources
power
we
in
The
for
development
power
a
of
de¬
our
Cer¬
fenses.
has
close
the
been
principal purp o s e
of the
billion appropriated
to
$11
appraisal
since the passing out of the
Manhattan
Project under which
the wartime atomic development
carried
out.
That
continues
of
paramount importance.
Our hope here is that out of the
for '
created
thus
strength
tions of the world, it
sible
political,
When
we
tunv how¬
from, a consideration of the
role of the atom in defense to that
peactime use, our major atten¬
is likely to be directed pri¬
marily to nuclear energy as a new
source of power. In pursuance of
tion
economic
that >interest, it' is
natural and
So we continue to hope thak healthy to project our thoughts
the atom will justify the sweat and our hopes into a future when
this source of energy will have
and toil that have been invested
been so developed that it can take
in
it by leading to
useful and
its place beside, and perhaps even
significant peacetime applications
for the benefit of our own coun¬ be more economical than, the con¬
sort to the horrors of an atom war.
ventional
try and of the world.
A
number
of
events
indicate
the
growing awareness of
importance of this phase of
our
atomic
our
recent
Octo¬
Last
activities.
ber, the Atomic Energy Commis¬
sion announced that it was em¬
based
forms;
on
water
that
is,
-
those
or-
power
on
ordinary fuels—gas, oil, and coal.
The
probability of such a de¬
velopment is certain to excite the
imagination of the people of this
country with its constantly ex¬
of a panding economy — an economy
civilian
power
reactor. - In
so that, with less than 6.5% of the
world's population, already uses
doing, the Commission stated that
more
than
two-fifths
of
the
this was to show the world that
barking
on
the
world's
ican
address
Bankers
Jan. 26,
placency
has
tion
by
Association,
Chicago,
111.,
1954.
of
no
such
com¬
in
rela¬
developed
our
power here. Evi¬
enterprise in this
from many
nowhere better than
apparent
is
respect
and
sources
from
that
electric
to
dence
of
examination
an
the
world-wide
power
interval, the United
State. increased
its power pro¬
electric
energy.
Any de¬
velopment that can assure the
availability of virtually unlimited
amounts
of
energy
and which
the
In
same
duction
that it is Mr. Meany's
of
energy production
more striking results.
of
data
are
ex¬
pressed in round numbers. In 1952
the per capita energy produced in
the United
States
prestige as they have never
before enjoyed. Instead of continually snining
at the President, they are occasicnal callers
at the White House, luncheon guests, dinner
guests and whatnot. They have been accepted
in the Washington salons. They have gone in
for aperitifs and the bon mots which are such a
part of the life of what is affectionately, semetimes derisively, called the Nation's Caoital.
it is not such
For Mr. Dave Beck
as
a
whole
was
his
offices
considered
the
taste
was an
himself
be.
to
Norway. If you examine the
corresponding figures for other
Carlisle
Bargeron
There
was; never
Oh, maybe in a strike or a labor
anything radical about Mr. Beck.
dispute trucks would be wrecked and heads bashed in.
But they
The employer could always
always far removed from him.
were
get a hearing and find
Mr. Beck
reasonable, businesslike
very
a
to deal with.
man
Mr.
Beck
undoubtedly has the bussing of the Adminis¬
now
tration in his effort to take
the New York longshoremen.
over
The
Administration would like for the longshoremen to be handled in
Mr.
Beck's orderly,
will need
businesslike
It
way.
be, though, that he
may
than the Administration's blessing, inasmuch as he
more
is up against John L. Lewis' purse.
And
the
before
Petrillo
advent
coming
was
be
to
remember very well the
of
the
present
accepted
Administration
high
in
political
Mr.
circles.
touching send-off the Democratic
i
conven¬
tion at Chicago gave to the Veep, Alben Barkley.
The music was
kept up for more than 30 minutes while the old man stood there
on
the platform and took his bows and the well-wishes of the
that filed by to shake his hands.
In the throng appeared
Jimmy Petrillo and Mr. Petrillo's press agent butted in on radio
crowd
and television to
Then
point to him and
subsequently at
a
"It's Jimmy Petrillo."
announce
only Jimmy
rally for
Jimmy in the handshaking line and
was
announced.
Mr. Eisenhower
there
was
again he of all the hun¬
dreds was identified.
Came subsequently, Mr. Eisenhower's elec¬
tion and his inauguration.
On the Inaugural Ball programs for
which the customers paid $12.50 each was the acknowledgment
that
ball
the
once
being conducted
was
through
the
courtesy
of Mr.
Petrillo.
So
and
and
industrialist. And,
industrialist that Mr. Beck
outstanding
an
indeed, it
with
furnished
were
of
luxury
graces,
higher
climb.
a
When he used to hold forth on the West Coast
than that for
kwh.%
basking in such
are
social sunshine and
other country except Canada
2,950
any
Eut two other-highly
controversial labor leaders
figures
the
capita
yields even
All the following
per
impression, in fact,
get the
Of the several hundred who filed by
180 %.
Comparison
you
him
see
now, run into him, in Washington's good
at cocktail parties, in the more fashionable
one of the distinguished personages.
He loves
pointed out
cocktail lounges as
it, too.
highly
industrialized' countries,
you find France with 950,
West
Germany 1,150, Japan 500, United
Kingdom 1,450, Russia 600.
The
I'll say this much—they are a welcome substitute for
Hillman who used to boss the roost down here. It wasn't
figures for the two most populous
Asiatic countries are interesting:
power.
velt issued in
1944
in the matter of his Vice-Presidential running
China 4,
mate.
was
never
building
Mr. Sporn before the
National Credit Conference of the Amer¬
•An
in
of
pressures—ideological,
— without
re¬
mounting
few.
a
ever,
na¬
will be pos¬
resolve the
eventually
to
but
our¬
selves and for the other free
the
outlook
for
particularly in this
fortunate
expansion in electric
production that has taken
country.
place in the
period 1940-1952.
The beneficent peacetime use of
Canada's
production
expanded
the atom shows favorable pros¬
106%, France's 114%, that of the
pects in many fields — in food United
Kingdom 117%, and that
processing, in controls, in medU of Soviet Russia — with all its
cine, in chemical synthesis, to list series of
five-year plans—150%.
years
be
of
atomic power,
by the Congress in the last eight
was
to try to make a realistic
propose
Sporn
Philip
par¬
prospects are somewhat more ob¬
scure
than
these conclusions,
I
that
tainly
and
Ycu
his rival labor leader.
as
Thanks to the
ticularly that cheap and plentiful
atomic
power
is coming at an
early date. Because
the actual
strengthening
Labor, and Walter Reuther, President of the CIO, seem to be vying
with one another in finding fault with the Eisenhower Adminis¬
ambition to be looked upon as just as vigorous
.
its
American Federation of
President of the
Meany,
F.
tration.
long period.
genius of one of our
taken enor¬ world-wide
pool
of
fissionable
great pioneers, Thomas Edison,
mous
strides material for peacetime develop¬
electric power
was
born as an
in
the
de¬ ment of atomic power, and in¬
industry in this country nearly 75
vited
Russia
to
join.
velopment
of
years ago. One of the hazards of
It is but natural, therefore, that
the atom.
Up
leadership is the tendency to grow
to
now,
most a great many people in this coun¬
complacent,* to let younger, more
of that de¬ try,
and
even
more
in
other
vigorous competitors pull ahead
velopment countries, should conclude that while the original leader coasts
has
had for the day of the peacetime use of
on
his earlier successes. We are
has
States
By CARLISLE BARGERON
George
question from the standpoint of
first observing how this country
has fared in the development of
the
on
of the News
on
development in the near
we
must
approach the
atomic energy.
United
the
Hiroshima,
Ahead
We must try
terms.
Washington
future,
to
peaceful future." Then in Decem¬
ber, President Eisenhower, speak¬
on
measure
what
1945, when the atom first burst on
the world's consciousness with the
bomb
practical
to
existing
Holds atomic power must compete
"America's
in
sible
corner," and that very
hard, very expensive, time-consuming work remains to be done
before commercial atomic power can be a practical reality.
however, "it is not just around the
August,
From
the
quantitative basis. If we are
to
answer
the question
of just
how will the United States benefit
from atomic energy and its* pos¬
leading utilities
Since the fateful day in
to understand
are
to
.
some
organization, calling attention
to status of electric industry in U. S., finds atomic power may
be used as substitute fuel in driving electric generators.
Says,"
of
Executive
*
*
we
interest
vital
of
significance of atomic power, we
must try to evaluate the prospects
By PHILIP SPORN *
President, American Gas &
is
every one.
Yet if
to
.
(574)
The
India 18.
of
source
this
electric
in the United States
significant. While water
power
has played a significant
role
in
the
history of electric
energy
is
used
also
power
development in this coun-
Continued
on
page
35
tion of his just
was
in
going to the White House
matters
on
state.
of
social visit.
on a
ques¬
Sidney
In
many instances he had the veto
Remember the "Clear it with Sidney" orders which Roose¬
Sidney
much of
a
social lion.
He could hardly
and in the military
be sold in the salons but in the party caucuses
pow-wows
often
Sidney
a
Sidney
was
there and his word
was
emphatic and quite
binding.
Neither
estate
Beck
this.
as
nor
They
Petrillo
are more
seems
to have reached any such
like the hard-boiled businessman to
whom the business of making money has become boring and they
will do anything to get to Washington in an official position and
protocol place at the dinner table. The association with foreign
diplomats and Senators is fascinating to them, to say nothing of an
a
occasional
call
or
mission
a
appeals to Beck and Petrillo.
from
the
It's
sort of
a
President.
a
This
is
what
washing off of their
past.
$2,970,000
New
York, Chicago and St. Louis Railroad
Equipment Trust of 1954
Grigsby & Brinker Are
Appointed by Nuveen
CHICAGO, 111. —John Nuveen,
Chairman
of
the
board
of
John
Nuveen &
2%% Equipment Trust Certificates
Street,
(Philadelphia Plan)
Co., 135 South La Salle
announced the appoint-
i
To
mature
representatives,
ment
Vice-President
Mr.
Grigsby, with the firm's Chi¬
office since 1934, and Mr.
Brinker, with the firm in Chicago
since
1939, will continue to be
headquartered
in
Chicago.
Mr.
Carpenter
has
been
associated
cago
1
guaranteed unconditionally as to payment oj par value and dividends by
The New York, Chicago and St. Louis Railroad Company
*
Priced
to
yield 1.50%
to
2.80%, according
to
Nuveen & Co. in Chi¬
since
been
1941,
and
previously
Vice-President
Brothers &
of
Barr
Co., New York.
-
Crutfenden & Go. to
maturity
Admit 0. R. Bonniwel!
Issuance and sale
The
Carpenter,
Manager of
cago
had
To be
and
retire¬
B
the firm's Wholesale Department.
with John
$198,000 annually September 1, 1954 to 1968, inclusive
the
and
Frederick
of
oj the Certificates are subject to authorization by-the Interstate Commerce Commission.
Offering Circular may be obtained in any slate in which this announcement is circulatedfrom only
such of the undersigned and other dealers as may
lawfully offer these securities in such slate.
CHICAGO, 111.—Donald R. Bonniwell will" be admitted to limited
HALSEY, STUART &, CO. Inc.
partnership in Cruttenden "& Co.,
209 South La Salle Street, mem¬
l
bers
R. W. PRESSPRICH & CO.
McMASTER HUTCHINSON & CO.
Wm.
A.
R. R. Brinker
Grigsby
„
February 3, 1954
ment
of
Robert
William
R.
A.
Brinker
and
wholesale
Grigsby
as
of
the
west Stock
New
York
and
Mid¬
Exchanges, of Feb. 16.
In the past Mr. Bonniwell was associated with Kneeland & Co., for
many years.
Volume 179
Number 5296
The Commercial and Financial Chronicle
.•.
.
*
'
(575)
Atomic Developments Recession Barrier!
Leopold D. Siiberstein, Chairman of Pennsylvania Coal and
Coke Corporation, over facilities of the Voice of
America, says
most
"
.
age.
loaded with
Leopold
D.
Siiberstein, Chair¬
man pf the Board of
Pennsylvania
Coal &
Coke Corporation,
pre¬
will
dicted
food and
as
Feb.
on
3
that
the
atomic
would act
age
creased
dou-
S.
national
gross
production
.the
Siiber¬
i
Of
L.
just
the
invitation
Western
he
pessimism
of European
about
men
from
the
business
provide
exciting
business¬
prospects
in
broadcast, Mr. Siiberstein
forecast five
developments in
new
the atomic age which would stim¬
ulate the growth of U. S. economy.
"The
most
advertisements
in
eve
the
try
\r
.
in
chemicals
new
range
of
products from indus¬
try for the service of mankind.
"Thanks
seen
t
into
atomic
1954
atomic
experimentation.
the
fruits of
and
energy
this
During
effort will
begin to be felt by American in¬
dustry.
"I
predict
that
the
entire
food
industry of the United States will
soon be revolutionized by atomic
developments. Some of the devel¬
opments already in sight,
to
the
atomic
age,
thanks
the
include
following:
of
uses
the
atomic
soon-.be made available
will
age
on
an
in¬
neighbors and
our
allies of the free world. The open¬
ing
of
this
will
age
atomic
give
Western
America
world
that surpasses
revolutionary
an
and
the
economic
lift
the vision of most
kinds of
not
and
opening
frontiers
new
which exceed
companies and food companies.
dreams
ous
of agricultural
The
long
owners.
are
Inventories
season.
up
extremely
ca¬
which
been
years,
Perhaps prices have
the ideas of
In
a
num¬
ber of cases, this
undoubtedly has
true.
But now the picture
has changed.
sales
the
and
February
I
the
too
long
—drastically
reduced
one
With
one
localities
cutting
are
men's wool suits.
offered
at
Winter
attractive
very
overcoats
robes also often
and
are
the
that.
Merchants
like
,
in
anything
adjustment
take in
the
scien¬
a
the
nation's
continued mild
which
business
will
stride, "Business In Brief,"
Chase
terly
in
trends
indicate
National
digest,
Bank's
prepared
quar¬
by
the
"Armed
"turnover"
for
the
future
such
is poor.
ness
as¬
come
with additional social
The
Chase
these trends
optimistic
for-
population
1954:
Bank's
as
on
casts.
"Sell. Merchandise—^
on
Wyllie & Thornhill
wool
; NORFOLK,
year.
of these
articles now, or will be next win¬
ter,
don't delay in picking them
Shop aggressively for the best
buys. Ako watch the store ads in
have
office
at
618
under
the
P. Dekker.
up.
Va.
Thornhill
—
A
number
of
household
goods
Grimm & Go. to
and
from
many
reliable
stores
and
be
sure
years.
2
secur¬
3A%
review
the
(Philadelphia Plan)
cites
To
for being
reasons
the business outlook
amazing
Equipment Trust Certificates
To be
postwar
mature
annually $351,000
on
each February 1, 1955 to 1969, inclusive
guaranteed unconditionally as to payment oj principal and dividends by endorsement by
.The Pennsylvania Railroad Company
\
1965
2.85%
1961.
2.675
1966
2.875
by
1957
2.15
1962
2.75
1967
2.90
1958
2.35
1963
2.80
1968
2.90
1959
2.50
1964
2.825
1969
2.90
helping
to
downturn.
combat
a
developments," the re¬
port concludes, "underline the in¬
weather the current readjust¬
ment period
in fine fettle and
Of last year at an estimated $3-$4
move
billion annual rate.
economic expansion."
attributes
can
in Brief" points out, but the
cut
in
should
crease
corporate
prevent
since
available to
income
nay
more
into
new
a
period
subject to authorization by the Interstate Commerce Commission.
Offering Circular may be obtained in any State in which this announcement is circulatedfrom only
of the undersigned and other dealers as may lawfully offer these securities in such State.
such
of
funds
Joins Cruttenden Staff
will
(Special
to The
Financial
Chronicle)
de¬
CHICAGO, 111.—Mrs. Marion B.
be
Cronin has been added to the staff
of Cruttenden &
help sustain business
investment.
Consumer
on
The
Co., 209
La
incomes, also profit¬
-
Salle
BAXTER, Wl LLIAMS & CO.
WM. E. POLLOCK &
add about $3 billion to posttax in¬
changes.
•
-
»
.
CO., INC.
GREGORY &. SON
INCORPORATED
McMASTER
Street, members of the
New York and Midwest Stock Ex¬
'
FREEMAN & COMPANY
South
ing from the cut in taxes, should
'
l
HALSEY, STUART A CO. Inc.
taxes
greater
be added)
Issuance and sale of these Certificates are
■
Capital investment during 1954
may drop from 4% to 6%, "Busi¬
ness
to
creased
most of the current decline to the
analysis
(Accrued interest
"These
orderly working off of inventories
which began in the fourth quarter
bank's
MATURITIES AND YIELDS
business
resiliency of the U. S.
economy.
They help explain the
growing confidence that business
The
John
form¬
Household Goods and Appliances
1.95
_
of
was
with
Virginia
Securities
Company and prior thereto with
Scott, Horner & Mason, Inc.
1956
;
branch
Building,
erly
your paper.
2.60%
And
a
Royster
Mr. Dekker
I960
buying is still active.
Wyllie and
opened
management
1.75%
government policies are designed
to speed the shift to a soundlybased prosperity."
:
Open New Branch
bath¬
1955
-
sumer
;
t
"The economy is coping vigor¬ growth
ously with the current mild busi-> more construction to match popu¬
ness adjustment," according to the
lation and income, business in¬
£hase study.
"Businessmen are vestment in new equipment, and
rising to the sales challenge posed the assistance of government in
Con¬
pur¬
1954 motto.
Pennsylvania Railroad
Equipment Trust, Series BB
rise, the phenomenal
of income, the need for
competition.
can
Buy Parking Space" should be the
as
ity taxes reducing this figure by
about $600 million.
bank's Research Department, fore¬
stiffening
except' in
is the
now
I forecast you
utilities, chemical companies,
companies,
drug
In quarterly digest, "Business in Brief," Economic Research
Department of Chase National Bank, attributes most'of cur¬
rent decline in business to orderly
working off of inventories.
Major
by it in
parking space for customers
cheaper now when the ground is
frozen, snow is falling, and busi¬
$5,265,000
"
is
customers
this. America must go forward."
economy
of
that
Otherwise, don't today
shipbuilding
Economists Foresee Continued Mild Adjustment
,
Perhaps
stock
firm
Be not afraid to cut
prices for a short period.
win
end.
marked down
If you are in need of
any
city
your
levels.
sharply at this time of the
under way from one
out-of-town
being
are
an
which
chase
roof.
prices
Some
of
"parking space," which
spring just around the
clothing stores in many
corner,
to
some
overstock
price
ever
—
sembled anywhere under
be
mention
Word to Merchants:
best buy.
advertised
ago
prices
bring
the
have
To point
largest fur stock at
prices;
not
must
selling at half former
as
your own
that
not
special
also
rugs,
You will
the situation, I might mention
one
prominent Boston con¬
up
cern
at
should
liquidating.
stocktaking clear¬
end of the land to the other. Sales
floors and store counters this win¬
this
A
competition has be¬
severe.
economically.
prices.
quality.
hard hit by
was
goods
February traditionally
offered
vertised
the
warm weather earlier
piled
moving too well, at
enough to suit the
Semi-annual
market
come
goods have
consumers.
fur
abnormally
to
been
ance
is
the
guarantee
also
year
soft
month when household furni¬
a
is
the
not
of
of
have been cut sharply. I have seen
some of these items
recently ad¬
cases,
country's
recent
out of line with
do
I
more
early
Admit A. Gicerale
York
tists.
fast
prospective
furs,' now
time
types
purchased
exception.
indulge it. Furs definitely
on
some
have
a
emendous
consumer
been
not
to
and
a
low
a
will sell for
spring
the
ture
one
whose
sex
from
at
car
appliances are available now
mankind, and the wonderful part ter are loaded with
bargains that at bargain
prices.
The field is
is that some of it is here today.
many can hardly afford to ignore."
broad, but the goods are there and
It's not just a dream of tomorrow.
Merchandisers are more'than anx¬
rightly
priced if you shop around.
"The
atomic
revolution
will
'Grirnm & Co., 44 Wall Street,
ious to reduce
stocks, and they Just the other day, for instance,
cause
readjustment in industry
New York City, members of the
well know that the best
I
saw
a
new
just as atomic weapons are now
combination food New York
way to
Stock
Exchange, on
causing readjustment in the com¬ do it is to cut prices, even if prof¬ freezer-refrigerator offered at a Feb. 11 will admit Andrew R. Ciposition of our military forces. its are pared to the bone. In
cerale to partnership in the firm.
some
saving of 20% under a month ago.
The atom
today is already big
In the past Mr. Cicerale was with
instances, they are doing exactly But buy these electrical appliances
business.
It
is
R. H. Johnson & Co. for
providing
New
for
greatest previ-
of
in
has
has
Methods
for
"(1)
increasing
plant growth and yield per acre
the
I
in
pacity,
Roger W. Babson
creased scale to
has poured approximately $13 bil¬
r
greatly increased in
uct in
.
are
productive
time
"During the past ten years the
Government of the United States
offer¬
Thanks
this
all
is
Lover's Paradise
turns
time to
time.
.
the
to
fancy
kdowns
that
"The atom promises to dou¬
ble the U. S. gross national prod¬
lion
mar
Sua**
said.
15 years.
all
"(5) Atomic medicine is already been
coming on the market in al¬
fighting effectively against cer¬ most
unprecedented volume. The
tain types of cancer
and blood late
Korean
War
did
little
to
diseases
and
opening scores of dampen the flow.
As
a
result,
new
secrets of man's health
to stores
everywhere have bargains
science promising an even longer
in good merchandise.
Some of it
life to mankind."
Fur
guarantee.
buy
These include sheets, pillow
cases,
another.
For those of the fair
coun¬
some
is
be
can
bargain counter.
In
they can be bought at
the best winter half their
former price,
although
and
whole
a
the
to
cars
many
and towels.
from
or
to
used
a
the
Oriental
this
are
ing
in
a
This
when
to
con-
Merchants
peoples of the
-
to
m
over
the.'
and
are
be afraid
to another,
year
season
cheering fact.
known guarantor of our economy
is the atomic age," Mr. Siiberstein
important and least
next
'
one
daily
your
fir
lower,
metals
1
new
in
paper
leadership of least
President Eisenhower," Mr.. Sii¬
store
berstein
asserted, "these peace¬ been
the
:
further developments of such nat¬
ural resources as coal and oil to
trip
the United States.
In his
only to glance at
taste, and:
permit
of
revolution
during
by the
a
Europe
disturbed
was
of
Mr. Siiberstein
returned
through
Siiberstein
new
State Department.
which
D.
You have
*
this winter
not to
in
money
buying power,. much. more than "holdover." It
getting to be worth costs money to
carry goods from
pre¬
revolution
a
will
production
the
store counters
Advises merchants
time
summer.
in
refrigeration
possibly years,
of
which
day,
"(4) Forthcoming peacetime use
of atomic energy will permit a
of
on
States
by
more.
bargains.
standard
the
price. These
"Goods Galore"
situation, Mr. Bab-
a short period in order to win
customers, and
don't over-stock in
anything except parking space.
your dollar is
loaf of
a
possible to
and
better life for
the
America
be
free world.
the facil¬
Voice
will
months
cost
n
speech
ities
It
meats without
power
broadcast
over
tists.
United
stein made his
prediction
permit
while improving the
quality.
"(3) We are on the
15
years.
Mr.
soon
Day
•
radiation
current
the
is
reliable dealer
prices for
which
to preserve
Atomic
serve
for
in
next
cut
stay a year without de¬
terioration, according to the scien¬
and
U.
proc¬
prevent decay on an in¬
scale.
bread to
bling
,
food .shipping
it possible
of food will
result in
has
and
make
barrier to
recession
a
essing
American
a
a n
"(2) A revolution in food
the
on
get.
Now
By ROGER W. BABSON
points out sales floors and
son
is the atomic
J "
Commenting
important and least known guarantor of United States
economy
to
Winter Markdowns
11
February 4, 1954
HUTCHINSON
&. CO.
The Commercial and Financial Chronicle
(576)
12
By DONALD II.
r
ary nor
McLAUGIILIN
Company
President, Ilomestake Mining
situation in gold mining as affected by
policies which began with war in 1914.
much of the currency inflation to abandonment of
Mr. McLaughlin traces
mists who hold that it
the unsound currency
to be
Ascribes
a
consequence.
level of domestic prices—and fixes $79
the inter¬
ily determines the welfare of the
the
of
func¬
1914,
statistics
ment the world's
I
prior to
all ma¬
them
was
and
to
each
ratio
gold
own
at the
citizens.
even
denied
was
our
price
this,
a
would
pressed
cision
accepted and received gold for
the balances due us, which was a
the prac¬
prevailed of accept¬
marked improvement on
other
tices that had
ing paper promises for payment
the cost of shipping gold
or the subsequent policy of main¬
to settle balances in international
taining
trade through
outright
trade.
The miners could confi¬
mined by
gifts.
dently expect to receive gold coin
their metal, if they desired,
this
Under
foP
limited
gold stand¬
per ounce
for, to offset
inflation in costs ex¬
currencies that
paper
occurred since this date. Other
sidered
we
$70
factors, obviously, need to be con¬
market received support
when it was critically needed, and
export
in
of
called
seem
the existing
hais
monetary stocks
rate.
To achieve
desired
the
at
Through this move, however, our
relation
their
gold to $35 per
accompanied by
of convertibility.
not
restoration
new
in
fixed
ear¬
restraining the great
was
ounce
gold.
ex-
an
in price of
crease
Freedom to
price
at
depression. Unfortunately, the in¬
within small limits deter¬
varied
in
date
convertible
pressed
McLaughlin
lier
full
into
been
it would have
as
jor currencies
were
freely
The
D. H.
pected that would probably aug¬
of gold
it
as
i
in 1934 was in fact over¬
due and too late to be as effective
until its overvalued relation
ounce
in
arriving at
wise de¬
a
to
price, but as far as
maintainance of gold production
is a consideration, a price close to
this
as
is indicated.
level
To
many—perhaps
be
to
seem
simply
most—
to
this
at
comments
such
time
will
wishful
the
another self-serving
gold miner. I am, however, most
serious in urging that the point
of view I have expressed be given
impartial consideration, not for
the benefit of the relatively small
domestic
gold
mining industry,
thinking
of
me
happy to have
very
are
to
is
large scale
building projects
now
you
So
short term construction money.
This,
life
in
to
manent
after
only
commitments
obtained
is
turn,
lenders
that
new
depend so
heavily for their financial success
on
o u r
intend
for
loans
from
"take-out"
long
term
per¬
The
assured.
are
to
so-called "credit squeeze" was oc¬
upon
casioned by seeking these advance
high spots
commitments for long term home
touch
only, in talking of the
huge
mort-b
financing,
changed economic conditions that
might then exist, and at interest
rates fixed today, which might be
extended
rough-
out
out
the
coun¬
try
in
1953.
ing and mortgage
The
credit.
construction and
new
large scale financing opera¬
tions which began after World
the
War II were again
high levels.
of mortgages
line with rates prevailing
completion of the loan was
required.
1953 was another phe¬
nomenal one in the field of hous¬
of
of
when
John W. Kress
The year
volume
on homes to be built at
uncertain future time, under
some
credit
gage
th
They relate particu¬
"forward commitments,"
years.
larly to
of considerable import¬
devoted
the
war
and the fact that
me.
of
much
national
our
to
ance
and
Looks for less government
private financing of housing projects.
more
welfare
of
asoects
business
per
seriously disturbing factor in our
world trade. The increase in price
tioned
It makes
parable to those in 1940 or 1941,
an output in ounces could be ex¬
$20.67
at
produces
precious
gold standard,
and costs necessar¬
per ounce
mortgage loans.
on
the opportunity of discussing some
which
gold
that
the
$35
yield
lending and
ily met in depreciating currencies
as is now
the case, gold produc¬
tion has declined far below the
desired level.
With profits com¬
into
vertible
to other currencies became a most
Under
interest
of
maintainance
the
monetary stability under the gold
With the price held at
industry
metal.
an¬
standard.
mining
the
in
element
maintained the dollar freely con¬
base necessar¬
monetary
the
increment of gold from the
mines of the world is a critical
price to temporary shift in balance
The status of gold as
was a great mortgage year.
Sees need, how¬
of careful mortgage lending practices, due to heavy
demand for mortgage loans in current year and to the higher
of importance on
factor
a
as
possibility of overbuilt areas, along with saturation
secondary mortgage market, Mr. Kress finds, despite
ever,
nual
gold price. Ascribes recent decline in gold
of payments.
per ounce as proper
is
Newark, N. J.
Savings Institution,
all this, 1953
domestical¬
the international scale, for
to
of the
gold mining
industry, small as it is
ly,
Howard
Association
Explaining the mortgage "credit squeeze" in early 1953
due
Gold Mining Industry
includ¬
ing the dollar, are adjusted to the persistent higher value of
gold. Advocates full convertible currency at a ratio that would
the
Division
Mortgage
Bankers
would have
higher than $35 per ounce.
The welfare of the
by gold, will be effective only if depreciated currencies,
tend to hold present
Vice-President,
KRESS*
W.
Savings and
American
Importance of
says gold mining industry has suffered
Holds restoration of sound money, backed
gold standard, and
JOHN
By
President,
views of those econo¬
I share the
portion
Thursday, February 4, 1954
.
Mortgage Credit in 1954
deflationary. Various pro¬
cedures
might
be
devised
for
estimating what the price of gold
should be for the most beneficial
effects on the economy as a whole.
Gold Price and Gold Standard
national
.
be neither inflation¬
would
itself
as
.
/
carried to very
In 1953 the number
made will total more
outs"
Permanent loan "take¬
under
such conditions
were
understandably held in abeyance
during part of 1953 until a more
solid base for money rates was as¬
sured, and until
from
the
some
adjustment
wholesale
"take-out"
plan, to a more realistic basis de¬
signed for present-day needs, was
established.
representing a vol¬
Objections to the type of pres¬
ume of over $18 billion. This sum
sure propaganda seeking to influ¬
exceeds that of 1952, which itself ence a flow of credit into
building
but for the welfare of the econ¬
represented an all-time high rec¬
proposals
under
unsound
eco¬
omy as a whole.
ord.
Big business, if I have ever nomic
conditions
have
been
heard
the
term
properly
em¬
At
dollar.
This
condition
which
is
present, the power of the
the uncertainties of a fluctuating
voiced by people within the real
It involves the extension estate industry itself. A promi¬
market
price of their product. the worst possible one for the dollar has forced gold on the more ployed.
of
a
line
of
personal
credit
to
a
or
less
free
markets
abroad
to
de¬
nent realtor in the fast-growing
They were determined by grade gold mining industry unfortunate¬
cline to the price fixed by the tremendous number of individuals
and quantity of ore treated and by ly still prevails.
■Westchester
County, Metropoli¬
Inflation'
under
this
United
States
Government.
If
it
and
is,
perhaps,
the
great
sales
policy
is
costs of production. Consequently,
tan
New
York
area,
expressed
volume
of any industry in the
made
too
can
succeed
in
easy
for
politicians
to
doing
this
indefi¬
in
times of general
prosperity,
serious
objection to real estate
Permit me also to make
with labor scarce and with wages resist and for bankers to condone; nitely—i.e., making gold accom¬ country.
selling methods, based upon high-t
some
and the citizen is denied the pro¬
comparison with former
pany the depreciation of a paper
as well as prices of all supplies at
pressure tactics which are used to
tection
that
ownership
of
gold
years.
The
number
of
new
hous¬
currency
brought
about
by
two
high levels, profits declined;
mfirket new homes today, on the
decades of deficits and monetiza- ing starts during the eight-year
whereas in times of depression, alone can afford.
claims of mortgage shortages.
It
tion
of
debt—one
might
well period following Jan. 1, 1946, is
when opposite conditions pre¬
has been his experience, shared
Sound Money Restoration—
equal
to
the
total
of
all
housing
questioji
the
importance
of
gold
vailed, profits rose.
(
by many reputable builders and
Remedy Against Further Inflation itself as a monetary base.
It is starts made in the 20 years prior
With any one permitted to re¬
freely convert¬ ard, domestic convertibility was
ible into gold.
Their return in denied to our citizens, and deficits
were met through continued monmonetary units for the metal they
etization of debt, with resulting
produced was assured. Their pro¬
fits, therefore, were not subject to progressive depreciation of the
or
paper currency
than 3 million,
s
his
deem
gold,
in
dollars
paper
extreme variations in the value
restrained and the
gold mining properties
were
money
investor in
was
of
far
.with swings in the
system
in
vere
1914, when the
peace,
every
equivalent
of
capital levies imposed
cruel selectivity upon those
se¬
with
thrif¬
ty citizens who had savings repre¬
sented
bonds,
insurance,
by
pensions or other paper promises.
The magnitude of the levy under
the guise of inflation has varied
from complete repudiation of all
obligations expressed in the old
units to the three- to five-fold de¬
preciation
we
have suffered in the
United
States.
Obviously, con¬
vertibility into gold at the old ra¬
tios
could
not
be
maintained,
the value of currencies
down.
land
The
in the
effort
was
as
forced
made
by Eng¬
early Twenties to re¬
store the pound
sterling,to its 1914
status by reestablishing conver¬
tibility into gold at the old ratio
was
an
honest
but
But, it will be effective
unrealistic at¬
ratio—the
$35 per
price—would result in an
prewar
ounce
overvalued
whose effect
on
our
export trade would cer¬
tainly Joe most drastic, once the
props
derived from grants and
foreign aid of one sort or another
restrict
to
trade
and
thereby
serious
most
a
to
degree
at
higher price of gold, I fear
a
our
exports will be most seriously
curtailed
before, very long, with
painful effects on our do¬
mestic prosperity.
,"
>
*
lars
in
socially; and if the
and
the
politically
or
not
be
standard were restored on
this basis, we would undoubtedly
gold
.
The loss of over
of
by the United States reveal
icies
deflation
A
and
depression, of
would be beneficial to the
gold miners, even with gold at
$35 per ounce, for wages and costs
would be down and many good
miners
those
would
laid
the
in
off
We
camps.
available
be
metal
base
short¬
hardly
are
from
sighted enough, however, to favor
procedures that would be so
such
harmful
for
our
The
in
to
our
efforts
the
and
our
to
at
sound
obtain
stable economy is
of full convertibility
would
their
into
gold
tend
present
domestic market
to
at
a
hold
level
and
which
the
as
dangers
strange
our
international
leading
are
grants
into
present monetary pol¬
well
of
cepts
aid
clearly
our
as
financial
con¬
trade
to
the
have cooperated in ex¬
tending the type of credit which
country
made.it possible, and at
time
and
to
the same
report the great concern
criticism which was directed
investors dur¬
ing the early months of 1953 for
creating a "credit squeeze" in the
industry.
ings
looks
It
to
me
as
if
soundly constructed and
are
be
the credit of the borrower can
justified, lending institutions are
ready and willing to finance with
reasonable loans.
rate
This is
every one who
an accu¬
and
statement
forceful
and
should be the basic
has
philosophy of
regard for
any
well secured
mortgages and for a
stable
prosperous
and
national
economy."
:
In today's
same
to
markets, it is to easy
sight of the constant need
lose
for the lender to maintain
credit structure for his
a
quite a few of our mortgage lend¬
ers
approached the problem as
eyes
construction,
make
though they were back in the
"horse and buggy days."
which
He
to poor
loans
excessive in relation to
are
value,
nor
sound
loans.
should not close his
just
originating
be passed
because
fees and discounts may
-
As you
has
undoubtedly well know,
there
plentiful
ent
been
a
supply
The
credit.
Squeeze"
"Credit
So-Called
The
continuous
mortgage
of
reason
contraction
and
for the appar¬
of credit
was
the
strong possibility that there were
our
perhaps
many
overbuilt areas,
on
-
to the
By
buyer.
practices,
homes
would
the
future, and there
a much larger group of
lending
careful
fewer
constructed
poorly
would be built, fewer losses
in
occur
would be
satisfied
Not
home
owners.
only is there
an
ample sup¬
effective stock of gold is gone al¬
that the secondary mortgage mar¬
ply of mortgage credit presently
ready,
ket
saturated by the discount
available, but there are also avail¬
as
is
apparent
when
the
huge outstanding foreign balances
are
taken into account.
can
it
be
continued
How long
before
the
was
V.A. loans, and that
interest rates did not
the desired flexibility to
prices
on
regulated
afford
depreciated dollar will have to be
meet the normal
brought into
supply and demand.
tion
to
a more
realistic rela¬
These
gold?
were
requirements of
some
of the
able
The
gold
decline
in
prices paid
for
the world's nonmonetary
markets to close to $35 per ounce
on
seems
to
me
to be merely the re¬
sult of the shift in balance of pay¬
ments
that
has
caused
gold to
Continued
but
financing of sound
projects in
page
34
appreciate
the
situation
In
some
to be
a
of
a
address
Jan.
Pan'"—
26,
by Mr.
Credit
1954.
Kress
Conference
of
Chicago,
Association,
.
before
>
the
the Amer¬
1954
there continues
extensive backlog of
them.
new
homes and, con¬
constant
pressure
It reflects
to
the needs
mobile and fast-growing pop¬
ulation
*An
National
for
sequently,
build
for
areas,
very
demand
building
new
the future.
Prospects
causes
fully, it is necessary to understand
the
greatly changed pattern of
mortgage lending procedures
which have developed in the post-
ican
on
to
long-term commitments in
proportion to assure the
proper
for the so-called "credit squeeze";
on
that in
throughout
investors
and
Half of
us.
Why Gold Price Declined Recently
seek
a
currency
that
too
lavish
simply
temporary benefit.
we should
ratio
prices
economy,
objective
the depression of the Thirties.
of
the
gold during the past year
immense buildup of for¬
made
controlling it.
course,
billion dol¬
spite
all
forced
be
,
one
extent
the
of
indication
eign claims in dollars and gold in
off it, with the
prospect
of continued
inflation
with still less hope of eventually
again
put
of
are
major importance.
What a para¬
dox it is to report this great
amount of new business to you, as
convertibility against these
Without
markets.
will
dollars)
disadvantage in the
competitive
world
severe
a
increasingly
tolerated,
„
could
restoration
at
us
measured
(as
economy
over-valued
pression
ligations to its creditors; but it
merely succeeded in aggravating
States, the least
damaged by the first World War,
high-cost
most
money
United
dollar,
exports, when the artificial
from foreign aid ceases
and
when our
high wages and
have been removed, as they must
be before long,
The consequences
of the resulting deflation and de¬
tempt to meet the nation's full ob¬
The
threatening
and
dangerous
situation.
ternational
in¬
statistics
minor
These
in
monetary
of the world has
to depreciation of its
the
been
have
this
the dollar in
overvalue
to
contractors, that where the dwell¬
1946.
to
the
Situation
The prevailing policies
currency.
be
the
business cycle.
uneasy
had to resort
steps in the correction of
that
however,
present policies will
which
country
major
sential
our
an
profoundly disturbed the
economy of the world.
To finance
wars
and the
extreme expendi¬
of the
effect of
support
so
tures
likely,
more
cluding the dollar,are adjusted to
the persistent value of gold.
Reestablishment of convertibility at
succession of disaster started that
"has
money,
than
details
well-ordered
ended
sound
our
Disturbed Currency
This
of
by gold, is one of the es¬
only if depreciated currencies in¬
technical
of
effect
concerned with the
more
Restoration
backed
urban
and
the
spread
communities
HI.,
....
Continued
of
which
on
sub¬
have
page
34.
"Volume 179
Number 5296
.
The Commercial and Financial Chronicle
.
.
Purchasing Agents Extremely Cautious
(577)
pressed
Multilateral
National Association of
Convertibility
Purchasing Agents report a spread of
January, with selling efforts being
Majority hold, however, a leveling off may
strongly pushed.
within first quarter of year, followed
composite
opinion
of
pur¬
chasing agents who comprise the
National Association of Purchasing
Agents' Business Survey Commit-
tee,
whose
Chairman is
Robert
ers' appraisal of the
chester
o m
Re¬
Arms
cline
Haven,
t
u s
r
i
objective.
tion
little
•a
policy
slowly
| and picked
Robert C. Swanton
to¬
wards the end of the month.
duction and orders both
but at
Pro¬
to spread—but with no
declines.
t>eing
•
strongly
sharp
gen-
Selling efforts
- pushed.
The
are
ventories continued.
Employment
lower, though cutbacks have
of
the
60-day"
tions
but
"hand-to-mouth
columns.
are
are
Credit
to
condi¬
generally reported good,
being closely watched.
Purchasing executives, though
extremely cautious, are not pessi¬
mistic; they find the transition
into
buyers' market
a
been
orderly.
that '
lieves
The
so
being,
leveling
a
off
be¬
may
upward trend.
Commodity Prices
duced.
ity is rising.
reported
More
areas.
collar
liquidation
panic
or
selling.
Apparently, the majority of price
was the result of sell¬
some
Productiv¬
jobs
Buying
to
the
trend
reversed in
90-day
December
January.
Lack of
prices,
shortened
of orders, and inven¬
demands
for
political
action
by
the government to maintain pros¬
perity, the February issue of the
for
these
that
spell, "true"
liberalism, rather than
of
new forms
According to
"intervention."
Employment
welfare
markets and
centives
of
a
governmental
features
These
matically in
program
a
to
and employ¬
exist
truly free
auto¬
economy.
earlier
"The
mercantilism,
economic system
in
Europe
as
Mercantilism
Prices,
of
nationalistic
life
tnought
aims.
was
subject
to
tries
terest.'
that any
with
"Mercantilism
superseded
tariff concessions
country automat¬
also to other coun¬
which
been
significance
only
United
if
imports
of
make
duties.
a
minor
Without
actions
blocked
by
jump
access
con¬
over
to
a
it is
that
little
trade of
a
not
and
country in
balance
of
distantly
fields.
cult
to
new
the
money
there
era
were
action
world
which.we
that
the
first
leadership would be for the
for
States
which
to
return
have
we
to
more
adequate gold reserves." "
dis¬
needs
program'
from
of
intervention
gram
for
a
warrant
the
entire
exchange restric¬
in
gold
Richard
about
encouraging
abroad, yet
quality of the
transferrable, re¬
the
particular
in
doubt
Abbe
Richard F. Abbe has become
sociated
&
Shearson, Hammill
Co., 14 Wall Street, New York
institutional
department.
enterprises sometimes
their
to
"forced"
j
much
see
about
the
It
investment
in
there
is
quality
which
they
(Special
the
of
ex¬
are
io The
Financial
PORTLAND, Maine
Chronicle)
—
Clyde K.
Woods has become affiliated with
Walter J. Hood
Street.
Co., 415 Congress
1
the
but
restoration
of
new
(Subject to audit adjustments)
a
pro¬
of
Fortunately,
Year Ended
Three Fiscal Months Ended
Billings during the period:
Dec. 31/ 1953
Dec. 31,1952
Dec. 31, 1953
Dec. 31, 1952
$ 93,748,637
$ 73,700,162
49,834,050
the
$29,428,577
$24,671,859
Ship conversions and repairs
9,653,964
14,720,386
46,477,078
Hydraulic turbines and accessories
1,624,198
2,160,196
5,242,376
5,625,820
Other work and
2,978,001
2,783,653
10,815,588
10,451,564
$43,684,740
$44,336,094
$156,283,679
$139,611,596
Shipbuilding contracts
freedoms and incentives that spell
liberalism.
Major Contracts and Number of Employees
that
our
government is moving in that
direction."
Totals
«
»
operations
•
,
,
>*••••
Jackson Adds to Staff
At Dec. 31,1953
(Special to The Financial Chkonicle)
BOSTON,
Donahue
Mass.
—
been
added
has
staff of Jackson &
31
Henry
to
the
,he
Company, Inc.,
Milk Street.
employees at the dose of the period
The Company reports
to
The
Financial
Chronicle)
vary
from the billings
Main Street.
January 27
.
I
$316,751,120
17,702
the percentage-of-comp!etion basis; such income for
on
the contracts. Contract billings and estimated unbilled balances are subject
,
Co.;;507
1952
possible adjustments resulting from statutory and contractual provisions.
WORCESTER, Mass.—Alfred J,
Albetski.is with Gibbs &
on
16,286
....
income from long-term shipbuilding contracts
period will therefore
any
With Gibbs & Co.
1 $181,562,872
'
period
Number of
At Dec. 31,
major contracts unbilled at the close of
Estimated balance of
A.
■
'
1954
.'its
I
|
t
,
■
.
■:
■
■
*
With Walter J. Hood Co.
diffi¬
is
if
'
proper
utilization
investment.
as¬
with
City, members of the New York
Stock Exchange, in the corporate
securities trading division of the
hardly merits the desig¬
in
F.
government
program
than
*
entire
Quarterly Statement of Billings, Estimated Unbilled Balance
of
con¬
Richard F. Abbe With
Newport News Shipbuilding and Dry Dock Company
have
once
might
step; in
is hampered to
trad¬
developments
gold for individual holders of rep¬
resentative
money.
Throughout
gold standard
to
to
redeemable
not
Such
able money
irredeem¬
policies divorced from
of
and
individual
of
related
the wake of our present
in
take
manufac¬
level
the
them
of
has followed
form
materials,
they are to be
Companies with earnings
of money
nation of
world
the
which
in
balances
given country with the
rest of the
likelihood of being effective
than any other
other nations
by
of
investments
about
invest
on
more
holders.
money
frozen
than
Reed
particular
that our
raw
exports
Much is said
conditions.
rather
Messrs.
Simpson, "Encouragement by.
the United, States in this field, has
Today this world-wide cir¬
all
wall present in unsound monetary
trade
enough
are
made.
bilateral
of
and
tions generally inherent in monies
insurmountable
an
soon
words
see
completely
by foreign
ers
the
to
trade
and
disadvantage
its
sound
sidering
of
culation of money
loses
In
on
goods and services attained
world.
likely could
vertibility in its domestic affairs
semi
high
example
countries very
follow.
./J.
United
not
was
a
from
form
attractive
gold
serve
pur¬
tured
a
also
excellent
an
of
ounce
Dol¬
other
the
country but rather to
in
as
an
would
Shearson.Hammill&Co.
with
made,
obstacles
of customs
on
the
problem
exactly
States
world
today
holders
World-Wide
agreements had
character
monetary
to
was
reciprocal
trade
in existence to
one
previously
Curiously enough, this
'positive
(Special
by liberalism, the system of free
enterprise and free markets/which
sought to increase naticnal pros¬
in
now
apply
those
Our
balance
total
accorded to
by the authoritarian state
—all, of course, in the 'public in¬
freely exchange¬
gold for all hold¬
solely for foreign cen¬
and not
excess
where needed.
Problem
restrictions, merit
than a program to
all
many
own,
the
forms
decayed.
wages,
economic
less
world
in
could be readily
into
one
suit shortly
by the United
makingthe dollar a
methods of the
not
characterized by
occupations,
the
right to do business—every phase
control
exchange
Stress
Under
years
our
to
is
close governmental regulation of
industry and trade with a view to
promoting
outmoded
today as ob¬
stacles when compared to insidi¬
which developed
feudalism
was
the
30
today
own
of
of currencies.
ous
convertible
basis of their respective gold con¬
tents and used in any place in the
has masqueraded under
of 'liberalism.'
business
they have been made so by a type
of political action that harks back
days
revert
era.
name
true
the
last
including
to
reversion
If they are weak now, it is because
to
converted
George F. Bauer
convertibility
followed
title to l/35th of
for
was
Action
f
nations,
in¬
the essential features
are
stimulate production
ment.
business
multilateral
action
approached
never
the
credited aims and
"
"Free
prosperity.
own
"Yet in
the
the editorial:
amounts of gold
private
liberalism the Western
world experienced a rise in wealth
tended
incentives
of
about tariff reductions is like
buying
genuine
that will restore the freedoms
and
step toward
Tariffs,
from
lars, milreis of Brazil and pound
sterling then
titles
to
specific
to
smaller wall when
his
crease
before.
one
as
restoration
being
readily used for
close
perity by giving each individual
the liberty and
incentive to in¬
the view that the
"positive program" that business
needs from government today is
expresses
a
and
Brazil
due
chases by Brazil in England.
gold
the principal
are
practices.
"Guaranty Survey," publication of
the Guaranty Trust Co. of New and
York,
inter¬
to
for
liberalism."
commenting on
into gold for all holders of repre¬
sentative dollars could be shifted
credits
States
convertibility of currencies
through the gold standard, to talk
Survey" says business does not
need new forms of intervention, but, instead, a program for
restoration
of freedoms and incentives
"that spell true
editorial
re-
agreements
Current issue of "Guaranty
an
na¬
tions' to
embodied
in
tory reductions
reasons
for
was
ing other
a
the
to
recorded
cred¬
United
ically
purchased
trade
a
States in urg¬
mitments
slight
often
was
trade.
by
thereafter.
States
to
once
world
which quite a few
because
assure
bracket
lament about dollar short¬
any
in no way dis¬
turbing under the gold standard
by.
"hand-to-
principal mate¬
to
these limits.
arous¬
the"; United
mouth to 60-days" range. Eightyfour per cent report holding com¬
for the
con¬
That situation
ers
moved
another
"constructive
The most favored nation clause
has
coverage
closer
and
another
even
tinent of countries without
Brazil
tral banks.
little
country
and
itor of United States and England
a
trade
debtor of our country.
standards"
,
one
country
to
.Ungland;
other
recognizing benefits of
countries
tween
ing
gold standard at
benefits
established
M^' Simpson'
able in terms of
also reported.
the
Originally the gold standard
age or dollar gap.
applicants for white
How to Stimulate Production and
In
Reed
make currencies
are
quality of money
stimulate
interna¬
investments
in
a
sound
assure
unfavorable balances of trade be¬
Richard
Skilled help is now
in
several
Buying Policy
The
adjustments
re¬
available
scheduling
cf
being
are
employment.
on
notation in which Repret i ves
:
national
cutbacks
The weather has had
effect
nothing
—
no
the
multiple shifts
some
a
.
turn
members:in
to replace the normal
The average work-week is
probably 40 hours and under, and
evidence
is
-
quits.
confidence
January
V
i
5
»
.
reported by
are
our
leadership
year
failure
and
was
there
a
Many report
weeding out of the least efficient
weakness
drastic—and
pursued,
7 ": '
Over-all,
purchased materials shows further
in
generally
survey
help im¬
foreign trade was
inventory^ recommended
have not been steep.
rials
The price structure of industrial
the
of
a
t
s e n
suppliersen-.
y
January.
far has
majority
this quarter, with a possible
come
of
cautious
.
Lower payrolls
47%
a
generally not been deep. Buying
policy is trending into the short
side
but in
and
Employment
re¬
duction of unworked material in¬
was
time
the
on
Not all countries need to estab¬
lish
requirement for restoring world
Stressed not in the Randall Report
with
weakness, ready Daniel
shorter produc-.
'
ago.
declined,
cember. Price weakness continued
'eral
mediately
December
stocks
reported much faster than
slower pace than in De¬
a
the
Turnover rates for materials pur¬
chased are improving — and are
up
mo¬
mentum
lead
courage
business start¬
ed very
Price
availability, and
1
a
in
Balancing
lower production schedules is the
January
d
crucial
The most vital way to
de¬
.
time
thereby
this
inventories
considerable
at
money
is
made
and
at
time it is to be repaid. Establish¬
ment of gold standard could
give
tional
commerce.
material
the
reported
Survey.
'.Conn., reveals
that
the
constitutes
son
Unworked
p a n y,
New
business.
Inventories
continued
particular
investment
assurance
Commenting on Randall Report, Mr. Bauer maintains con¬
vertibility of currencies through gold standard as proposed
in dissenting memorandum by Representatives Reed and
Simp¬
continue.
Di¬
Win¬
lating
for volume
the
manner.
supply and demand, and the keen
competition
and if there is apprehen¬
the purchasing power
about
and
New York Board of Trade
market test¬
ing which has been going on the
past few months, the changes in
rector of Pur¬
chases,
n
upward trend.
an
It is believed those conditions will
C.
Swanton,
I
Should Be Our Aim
By GEORGE F. BAUER
Vice-Chairman, International Trade Section,
A
C
by
of
an
mild price weakness during
come
sion
13
By Order of the Board of Directors
R- I- FLETCHER, Financial Vice President
■
1
:
14
The Commercial and Financial Chronicle
(578)
Independence oi the
introduce
i
replying to criticisms that Federal Reserve system is losing
independence through Treasury influence or through serv¬
ing selfish interests of the private banks, Mr. Sproul admits
cation and
but has since
credit policy.
Refers to the "accord" with the Treasury in
cannot be detected and eliminated
was
under
provements
of
this
Says
we
must guard against
a new ero¬
The
economic
efficiency
contends
but
too
closely
topic of
to
the assigned
talk .this evening.
I
my
intend to
in and out around
weave
but
not
will not hold
you
I
the
second
going to
borrows
ever
from
withdraws
or
pro¬
bank
a
or
deposit.
a
try to give
you an histor¬
Criticism of Federal Reserve
ical
One
and
phil¬
line
osophical dis¬
Federal
sertation
during
the
on
dence
of
tral
banks.
beyond
a
my
of
powers
Banks
not
were
ex¬
position,
it
be
yond
of
into
made
the
public
perform
Allan Sproul
endurance/
The
ject is continuously interesting to
of
sorts
charging
of
and
using
would
government,
favoritism.
to
As
in¬
govern¬
funds,
which
concerning the past independent twin* "evil^"
central banks, nor misconcep-l eliminated4.
be
may
curbed
or'
the
the
Federal
situation
present
of
Reserve
to
which,
the
even
economic
policies
elected
of
part of
our
job of providing effi¬
cient
coercion
monetary arrangements for
the nation, they should be elim¬
ests,
inated.
government,
the
to
exposed
or
of special private inter¬
disturbs many men and' at¬
ing
tracts demagogic assault.
When your President asked
I
me
speak tonight, I told him that
thought the ban-kers of New
York
State,
and
of
the
Second
Federal
Reserve District, have a
special call upon my, time and
energies.
This could
be
seized
by those who hold that the
upon
Federal
Reserve
banker-dominated,
in
oriented
its
tions, but it
plication.
carries
is
but
sure,
this
is
necessary
both
and
aid to the proper func¬
as
an
tioning of
the
as
our money economy.
performance
of
duty
money
matter of law
a
relating
of
In
primary
supply of
our
the
to the needs of agriculture,
and industry, and of
commerce,
our secondary duties such as
sup¬
plying coin and currency, collect¬
ing checks, and supervising mem¬
ber
banks,
with
necessarily work
through the
private
we
and
banking system.
objective
in both
areas,
however, is to meet a public need.
In
the
vide,
first
to
mitted
and
the
the
which
money
instance it
fullest
by actions
we
private
do
not
is
to
extent
pro¬
per¬
of government
economy,
control, a
supply which has reason¬
will
power
contribute
to
and
the
steady growth of the economy. In
♦Ail
address
Mid-Winter
State
by Mr.
Meeting
of
Bankers
nomically performed, is the
pro¬
vision of that better
banking sys¬
tem, which the original Federal
Reserve Act envisaged, and which
is
a
necessary
functioning
Sproul at the
the New
York'
Association,
New
York
City, Jan. 25, 1954.
part of the proper
of
our
Banking in- this
highly regulated
profit
of
economy.
is
country
public
are
their
a
utility.
operated for
with them and
fective
banking
form and at the
facilities,' in ' the
place where these
facilities will be most useful. The
which
suit of this
we
absorb in pur¬
objective
not sub¬
are
sidies to the private banking sys¬
with
a
the Congress would
jaundiced eye on a
of
extension
free
the
list.
as
well
The
to
costs to be considered.
as
first
danger here is that ex¬
position,
depart¬
government
and
controls
the
escape some of
the Congressional
to
of
appropriation
procedure.
There
must be literally hundreds of fi¬
nancial housekeeping jobs, I sup¬
which government depart¬
might seek to have per¬
formed
free
of
charge by the
Federal Reserve Banks, as fiscal
pose,
agents of the government, if the
doors were opened to this sort of
The
thing.
then
these
incidental,
to the
functions
the proper functioning
monetary system: And that
everyone.
Reasonable
duties
as
Reserve
Reserve
swamped
mechanical
men
and
by
the
friendly
attracted,
idea
that
these expenditures of the Federal
Reserve Banks should
under
the
on
page
common
sense
and
heads, financial experts talk
discuss stocks for
in THE
you
New
EXCHANGE, official monthly magazine of the
York Stock Exchange.
For example, in this month's issue:
Anybody afraid of tomorrow? Then listen to the
thinking of President G. Keith Funston
York Stock
Exchange
on
of the New
American business and mass
investing.
Names of 53 continuous dividend payers, with
106-year records. (They averaged better
55 to
market last
than the
year.)
Employee shares—pitfall
Davis
educates
his
executive
reading.
Are
or
(Aluminium Limited)
employees
stock purchasing. Good
on
1
"one-product"
time
been
budgetary
be
inclined
are
Federal
Twenty companies in each group are
compared—for
control
of
Congress, and the subsequent
a
to judge.
you
value"? Forty stocks,
Should I buy on "book
twenty above book value, twenty
below—compared.
These
argue
Reserve
Banks
Valuable investment facts in
your
a
magazine that slips into
pocket. Start your subscription with this February
issue, just out.
12 ISSUES for H
long
reserves
to
Not sold
to:
»..."■»*
Only
r
bankers
that the
on
newsstands.
subscriptions,
by their member banks, and that
earnings should
more
be used to
"free services" for,
instead
of
banks,
being paid over/in large part, to
argument
to
those
only
a
spoils
it
also
Such
Government.
Federal
not
who
please.
Send $1 with coupon
\\SHARE
OWN/-"
THE
EXCHANGE MAGAZINE,
20 Broad Street, New
Enclosed is $1
Dept. C
York 5, New York
(check, cash, money order). Send me
the next 12 issues of THE
EXCHANGE MAGA¬
ZINE,
only gives support
see
question
between
and
indicates
in
this
matter
division of
private banking-
Name.
of
the
a
below.
mak¬
are
ing large profits out of the use of
reserves deposited with them
member
better?^
discussed and
the
provide
invest¬
Subscribe Today.
for
creating
institutions
brought
have
banking.
deposit
better
companies
ments? Or do companies with multiple lines do
central banks.
Banks
privilege? President
tells why and how he
primary
their
provide the basis for present day
the
somewhat
are
nevertheless,
the
Continued
detriment of the
of
performance
the
critics
move¬
would
danger
become
would
Banks
with
final
that the Federal
be
depends
means
reverse
a
of such earning assets. Per-
reserves
Famous names, company
ments
these
on
be
the
government,
any case, is a small one, since
the charges made for fiscal agency
operations prevent erosion of the
net earnings of the Federal Re¬
serve
Banks, approximately 90%
of which
are
now
paid to the
Treasury. And there are dangers
cost
net
They represent a service to
everyone
in
the
country
who
tem,
our
is ! reduced,
reserves
would
fiscal agents, the Fed¬
Banks perform for
as
stockholders,
through them
tries to see to it that the- public
is provided with efficient and ef¬
of
there
the
and
percentage amount of your
required
stocks better
Reserve
Federal
The Earnings on Reserve Deposits
banking
system
as
a
whole operates for the benefit of
It is no help in the resolution
the community. And it is the Fed¬
of
questions such as these, of
eral
Reserve
System
which, course, to find
that there are
in
collaboration
nationally and
many bankers who still think that
with the Comptroller of the Cur¬
the
Federal
Reserve
Banks are
rency
and
the Federal Deposit
"making money" out of member
Insurance Corporation, draws all
bank
reserves
and
who do not
of these
private units together, realize that, on the contrary, the
but
over
have
ably stable purchasing
which
eco¬
expenses
Our
services,
and
the
you
be
overrid¬
conceived
Individual banks
ac¬
Our relations with
to
wisely
and
these
of
purpose
when
real
bankerim¬
no
the
and
such
close
are
System
and
attitudes
But
banks to the Reserve Banks. And
if the
and
narrow
a
transfer of
the member
How to understand
question of the services
travagant
System, be
jeopardize a position
though it be con¬
firmed from time to time, is never
free from attack. The
possibility sidies, as distinguished from serv¬
that
there
might be a "money ices that we can and should per¬
power" able and willing to flout form at no cost or low cost, as
allowed
the
myopic view, ments and bureaus, or economyI think, to look upon the services minded
agencies, depending on
we
perform
for
our
member: which way the wind is blowing,
would
find
this a convenient way
banks as subsidies to the banking
business. If there are such sub¬ to improve their own budgetary
It is
a
from
a
broad
it is
of
of
look
in
mak.e it of some interest to subjected to the general account¬
It is important, I think, that ing procedures of the govern¬
neither frozen attitudes of mind/ ment - presumably so that these,
created
similarly
effect,,
in
be,
ment
report each year.
we
will
earning assets
is
and
The
can
There
public
the
consequence
And
Gov¬
clined
this
a
ings which
Reserve
charge is made, I am in¬
to believe that both
the
to
sometimes
rily by buying government securi¬
ties during the war, now find a
reflection in the substantial earn¬
government, and for some of
consummate
revert
inert
Reserve
the
against the
Federal
Washington.
of
the
which
you.
tions
On
the Federal Government for many
as
as
the vaults-or,
Banks.
services performed for it. We
accused of favoring private
are
placed with us.
This
has
nothing
lack of control of the financial
which,
while
country,
of
Board
the
the
at
affairs
free
suggested
that
the
bankers, however, and it
Reserve
System
be
may
be that by relating it to Federal
banking discussions
and
credit brought within the budget-mak¬
policy in recent years and months,, ing orbit of the Congress, and be
central
of
System
no
of
audit
ernors
eral
the
been
dealings
of
otherwise
sub¬
all
the
of
have long
submerged under a
reserves
as they now lie in
better, on' the books
of the Reserve Banks.
The f re¬
serves which we created,
prima¬
just
with them. Their
under the imme¬
of boards of di¬
rectors performing a public serv¬
ice but,
in most cases, used to
the
compulsions of operating a
private business for profit. And
the banks are subject to the check
and
the
which
has
year
which
those procedures.
the earnings and
operations
of
over
growing banking system in a
a
growing economy continue to be
met in this way. We do not live
on
the reserves which you once
operations are
diate scrutiny
services for the commercial banks
ment
be¬
your
powers
System,
past
forays
stitutions
would prob¬
ably
of
prints, is that the Federal Reserve
cen¬
Even if such
task
criticism
Reserve
the
ominous
indepen¬
of
to
And
another.
to
these
of
'
daily observation of all who
the
the
improvement
of
our
banking facilities for the benefit
of every citizen, whether or not
makes
-
from
to
do,
of
using, course, with the level of reserves
the powers granted to them by which different classes of banks
the Congress. The reserves which are
required to keep with the
you paid into the Reserve Banks, Federal
Reserve
Banks.
If the
could be put back into your own percentage amount
of your re¬
vaults, and they would be there quired reserves is increased there
Reserve Banks is open to-
Federal
:
mote
he
am
abuse
shift
similar source of earn¬
a
.
the Federal Reserve Banks,
of the Federal Reserve
Banks are readily available.
The
have
instance, it is to
in
as
expenses
I hope that
to
facts
Federal Reserve
policies have been and should be consistent y/ith the overall
independence,
of
vault
by' this
be
ings
for
the - Federal
Reserve
Banks, if the reserve base needs
thick layer of reserves created by
present procedures, or im¬
March, 1951, and cites recent record of independence of Fed¬
eral Reserve policies.
ing monetary and credit stability.
I
possibility
any
policies cf the government. Concludes Reserve Sys¬
tem's recent policy has been reasonably successful in maintain-
it,
of funds. For my¬
uses
self, I do not believe there exists
sion
me
the allo¬
of flexibility in
degree
lost to the inexorable demands of the war,"
been restored by recent adaptations of a flexible
"independence
such
the years
since
Banks
banks were not, of
earning assets and did not
become
one
Reserve
..Thursday,-February 4, 1954
.
will
originally
by
reserves
the
member
course,
but
unfortunate
the
their
probably inescapable element of
rigidity of "Big Government" and
bureaucracy into operations
which, both on behalf of the gov¬
ernment, as its fiscal agent, and.
on
behalf of the public, through
the member banks, require a high
President, Federal Reserve Bank of New York
.
abuses, paid; into
real
corrected, this might be one
solution, albeit one which would
By ALLAN SPROUL*
In
were
to be
Federal Reserve System
its
If there
Office.
The
works.
review of the General Accounting
.
Address.
government,
tenacious
mis¬
.State.
City
understanding of how our reserve
deposit
banking, system
really
»
32
Volume 179
The
Number 5296
Financial Chronicle
The Commercial and
.
.
.
underl'loor conveyors using a con¬
tinuous link or chain belt. Indus¬
Siory of the N. Y. Mail Tube
trial
'
on the discontinuance by the Post-facilities of the New York Mail and
'1
.
General
master
Newspaper
Lamson
of
Transportation
Corporation, despite
points out the tube
company
owned and controlled
a
Post
Olfice
.t
Department
hps
refrained from
the
mail
been
administra¬
being publicly dis¬
weighed by
tor and is now
cussed by
evident
The relative cost has
his
New
successor.
Effect Upon Lamson Corporation
of
of
York
M-a i 1
and
York Mail
The New
News pa per
and
Transporta¬
is
tion
the Lamson Corp. of Delaware. It
is a small and
relatively unim¬
Co.
New
of
York al¬
though
the
mail-tubes
called,
been
had
number
master
Dec.
,,
in
.
_
had
Post¬
tion.
into
extending
to
their continued
for
is
It
contract.
a
usually entered
into
is
by two par¬
ties, each of whom is expected to
live up to his obligations.
When
either party is a corporation or a
natural person
find
can
we
a
gen¬
compliance, with contractual
terms.
At times governments and
Royalty
have
shown
tendency
obligations al¬
though improvement in the morals
to
be
of
the
lax
in
a
their
latter
has
been
noticeable
since the conversation of the Bar¬
with King John at Runnymede.
The contract between the Post
ons
Office Department and the New
York Mail and Newspaper Trans¬
portation Co.
dated Edison Co. of New York had
notice that it would in the
future
supply alternating current
only for the operation of the mail
in
the
past had used
vision
this
at
total cost
of equipment for
and
purpose
installation
its
10
power, plants was $214,870,
which under the contract referred
to
is
to
be
amortized
period
year
with
over
interest
"price
a
the
of
francise
Naturally
wants
10-
a
at
3%.
adjustment
operating
expenses
1952
contract.
These
were
for
$216,730.
increased
adjustment
an
1953
is
its
subsidiary
made
costs
re¬
be
not
Department,
reports.
a
as
the
they
in published
summary
No
mention
is
Post
appear
annual
made
of
provision for earlier termination
by either party. Perhaps the lessee
be
may
within- his
fraining
which
from
he
doubtful
has
rights
using
leased,
whether
he
in
to
be
a
matter
up
for
that
judicial
but
can
is
re¬
facility
a
it
is
escape
liability for the rental. That
come
seems
likely
to
determina¬
tion.
some
York
shown
mail
18
tube
postal
as
City
of
at
a
about
any
tube
means
than
as
to
more
a
year
should
backlog
high
as.
its
of
un¬
income
-Benjamin
the
annual
any
part
reports
H.
B. H. Roth &
New
ago.
corporation is pleased
no
Elected Directors
be
higher
or
contemplate the loss of
of
layer,
the
and
orders
While
volume
1954
York
Roth,
partner
in
Co., members of the
Stock
Exchange,
and
Charles Korn, attorney have been
elected directors of General Realty
&
Utilities Corporation.
$27,000.
in
cost
as
in
this
continue
jf the lessee
it will
obligation
has cutstand-
of
6%
cumulative
and
stock
require $36,600
per
annum
or
less, an amount well within the
earning power of Lamson- withthe
cut
dends
paid
mail
tube
the
on
Divi¬
revenue.
of 60 cents
share
per
were
stock in 1952
common
/ W/&.
/
and
70 cents per
Business: The
of the Lamson
let
share in 1953.
Corp. is the
of
'V;
/
W$i Z-y'y
'
'
'"tm?
m
manu¬
fork-lift
a
truck
will expand in
and
V
systems, pal¬
conveyor
business
:yss.<4:-:'yV<+:
A4 *
principal business
loaders, blowers, and related
Recently Lamson acquired
the
You
won't be able to hide your
pride when
"man" and tries to stand on his feet—even
this field.
The
earlier
best
are
even
as
the
retail
to
stores
these
were
The Beneficial Loan
installed
the
cashier.
have
stores
pneumatic
tubes
sales
Some
miles
but
systems, improved and
larged in carrying capacity,
in
of
today
such
found
en¬
part this
refers
pelled conveyors but
exists
field
in
air pro¬
to
a
for in T
conveyors
,
Industrial
basic
rollers
the
of
with
overhead
on
a
had
as
system
of
System, through its more than 800 offices, takes
of blows like this—helps whole families to stand on
money
their
emergencies arise. Beneficial made more than
sudden
for payday.
1,500,000 small loans last year, mainly to families to meet
needs
or
just the normal demands that can't always wait
These loans
a
way
"A
are a
kind of family insurance—a
big help in maintaining
of life which is our American heritage. That's why we say:
Beneficial Loan is jor
More than
800
a
beneficial purpose
offices in the
United States and Canada
that
any
carton
already over-burdened budget.
ar¬
to
WILMINGTON, DELAWARE
a
SYSTEM
machinery* could
little effort.
development
forth
when
boy first becomes a
■
arranged
small
a
piece
ther
so
a
help of gravity
from
heavy
ing
installations
pattern
out
still larger
dustry.
their
feet
stirig
on an
your
though a ruined "Sunday suit"
are
laboratories,
hospitals,
banks, commercial or business ofr
fices, libraries, etc., etc. For the
most
another strain
day
tubes or
connecting
the
means
present
pneumatic
with
department
systems
conveyor
known
"trolleys" that
be moved
of surface transporta¬
the
equip¬
present time abojut
Consid¬
with
too!
the
earn
of the
a pneu¬
competition
gets a black eye
242,315 shares
of' $5 par .value.
Regular dividends of $3 per-share
011 the prior
preferred stock have
been paid through 1953, and now
ticle
monthly
your budget
recapture
to
his
purchase;
by
offices
New
to
shares
common
with
ering the relative speed of
matic
greater
filled
the
in
prior preferred stock, having re¬
tired about 1,600 shares in 1953
system connects
in
Corp.
Tr.e Lamsc-n Corp.
ing
metal
The
1953
rounds
traffic.
calamity to the Lamson
Coip. stockholders.
counters
with
Lamson
necessary
on
10-year
in
appointed
equipment of
as they make
a
lating to the New York Mail Tube
contract
under
the other hand,
On
welshes
in
Office
Lamson
to the
service.
adults
the essential data
are
next
activities
added
intrepid couriers
their
Department
operate
and
installed
ment
in
due, under
to
continue
to
manufacturer
expenses
the
For
on
automatically
the
take
be
our
balance
rentals under the contract held by
operating
rental
to
to
31,1952," obvi¬
the
items.
the
the machine
adjusts
public highways.
During 1952 the rentals from
the mail tubes amounted to
$324,416 (up $6,500 from 1951) and the
in
pallet
system, after pro¬
depreciation shunted
for
facture of
$15,613
and
these
for
for depreciation
Office
Post
clause."
As
square,
one
busi¬
nearly 50 years it will be of more
than
passing interest to observe
the form of talaria (winged feet)
than $7.4 million in 1951 and 1952.
feet
3x4
be
Corp. reported net sales of
car¬
rectangular package,
necessarily
ously without regard to the value
The contract includes among other
provisions
not
about
may
stories distant.
From
.
pallet
and load
more
in
been
£143.913 at Dec.
would
direct current.
The
any
area,
in
the
by Lamson
loader from
been
Manhattan
very short dura¬
footnote to the balance
A
re¬
in 1950, partly
because at that time the Consoli¬
tubes which
bring cartons to the
packaging rooms that
con¬
has
downtown
usually of
i?°00
adjusted and
was
newed for 10 years
served
pallets
in
sheet states that "the book value of
to
eral
assemble
wooden
the (mail tube)
'
contract
loader is to
of
produced
to
or
of
use
in
ness
past because the contracts
the
many
use.
A
function
Corp.
who
of Dec. 31, 1952
as
reserve
has
the
with
were
entered
contract
1960
for
preceding
General
31,
,
Hubert F. Atwater
the
a-10-year
also
the
one
necessary
to
charge heavy annual depreciation
branches
and
years
it
and
a
01;
before
is
Post
and
veyors
distributed
are
The
Lamson
As
ing franchise $3,737,243"; but this
Office in New
YOrk
machine
loader.
This
handling
pallet
the
shows "Mail Tube System, includ¬
to
convey mail
between the
General
.The
subsidiary
sheet of Lamson
requires
of
subsidiary
wholly-owned
portant
so
used
Newspaper Transportation Co.
a
loader
an
each layer of packages goes on the
Delaware
Financial:
indus¬
one
utilizing the
facilities
tons.
assembly carried away for
storage or shipment. 'Usu¬
the installation of a pallet
ally
oil refiners and others whose
ers,
has
tube
making
busi¬
a
has been developed and
products
tion
advantages.
acquired
the
and
entire
sold to bottling plants,- soap mak¬
businesses
many
a
charge side of the loader
stack
was
as
machine
others
rapid and above all
package
known
by the Lamson Corporation.
The press and the Postmaster
General have given wide
publicity
to the fact that since Dec.
1, 1953
the
of the
one
trial
and
until
capacity is reached. -.Once have indicated for some time that
loaded the pallet is picked
the mail tube revenue is not para¬
up by
a
fork lift truck from the dis- " mount or essential in the life of
combination of these
Corp.
which
ness
subsidiary
a
contract
is but
Lamson
of the
entered into in 1959,
Company,
railways
a
methods safe,
labor saving.
Gammack & Co., New York City
Mr. Atwater, commenting
plants,
have found
By HUBERT F. ATVVATER
15
(579)
has
conveyors
monorail
Fur¬
-brought
operat¬
principle
and
Subsidiary Loan Companies: Personal Finance Company
Loan Corporation
...
Beneficial Finance Co....
Consumers Credit Company
...
...
Commonwealth Loan Company
. ..
Lincoln
Provident Loan and Savings Society of Detroit ..,
Workwomen's Loan Association, Inc.
The Commercial and Financial Chronicle
16
latest
This issue
productions.
Thursday, February 4, 1954
.
President's Economic Advisers Outline
already has exceeded its 1953
so
a
WALLACE STREETE
By
Policies for
best, which is an achievement
THE MARKET... AND YOU
accomplished only by
far
Tele¬
minority of the list.
dent,
markets. For
industrials, however it
strong
the
more
was
rails
time
for
in addition.
to
trate the 1953
above-average performance,
were
lack lustre this week.
high water mark.
if
if
if
official cutback affecting
An
industrials,
At least for the
the market action was
Glenn
solidly
and
Martin,
hints
of
istration, taxation
ciation for
excess
in the shade
it
it
it
With the rails it is
a
American
differ¬
chapter
The
chapters
preceding
have be that the government can stand
of action to aloof until some price index or
expansive forces of unemployment figure reaches this
trading provided a feature individual enterprise, and at the or that magnitude,
same time to strengthen the abilThis is not a realistic concept of
on strength in a couple of ses¬
ity of the economy to check either public policy.
It overlooks the
sions which, if continued, will
recessionary or inflationary trends, need for constant vigilance and
be only the second runup the The program calls for action not
preventive action, day by day and
stock has enjoyed since ap¬ only by the Federal Government, week by week,
but also by State and local governThe decisions currently made by
pearing on the New York ments. Business firms and finangovernment, whether in the sphere
Stock Exchange.
cial
institutions have important of taxes or housing or defense or
roles to play in the maintenance
agriculture or bank credit or any
Among the individual fea¬
more
Monterey Oil, one of the
recent arrivals to
outlined
listed
of mammoth
Telephone, was
In
mon.
one
and
and
sustain
do
so
If
consumers.
should
an
work-
other major
consumers
of
rate
even
and
if
financial
institutions
should
cept that is emerging in the practical art of government,
ter 3 may
use
legislation
sion,
booming
Government
slackening,
or
story.
facing the Federal
will,
indeed,
stars
iron
and
titanium
discovery
Wyoming, the stock
able
some
in
session
one
five
out—and
came
issue
the
in
column for the next
a Continuing
Casualty
Chrysler
minus
couple of
a
show the No. 1 volume
*
:!:
of
combina¬
reports, was able to
But
for
one
good gain.
despite its persistent
session on,
all the advance ex¬
pectations, by the way—profit
taking set in immediately and
the
position today.
*
lived up to
keot
tion
a
add
After the
points.
announcement
was
to
Not
Motors
ACF-Brill
was
for an all-time high.
which, backed by
many issues are in such
tion to go
for it,
a
strength, it still had quite a
The other side of the pic¬ way to go to come within
ture continues to be Chrysler range of its 1952 or even its
which was rather notable as 1951 best prices.
In that re¬
what spect, it had a lot in common
with sliding from above 98 with most of the issues on the
it
it
it
to below 60.
Stock continued exchanges which have staged
Buoyant Bethlehem
to hang over the issue this their private bear markets in
The story was a different
week again, making it rather the last year and more despite
one in the case of Bethlehem
obvious in new low territory. the story told by the averages.
Steel. The issue had been
it
if
if
Under the weight of around
buoyant in anticipation of
Continuing Selectivity
20,000 shares of liquidation a
some
sort of good dividend
The market shows no signs
day, the issue inevitably set
action
but
hardly expected
up widespread speculation on yet of abandoning the highly
the doubling of the quarterly
what's in store when the di¬ selective nature it has built
payment from $1 to $2. De¬
rectors meet for dividend ac¬
up over the past year and a
spite the advance strength,
Dow Chemical, for in¬
tion, expected next week. half.
however, the issue bounded
Measured by market action,
stance, would rate high on a
up on the actual news and con¬
the issue already has dis¬ list of the
persistently laggard
tinued to forge into new high
counted more than a 50-cent issues of 1954.
Yet Victor
territory before it ran its
trim in the $1.50 quarterly Chemical, which most port¬
course and settled down.
But
customary in the folio experts would place at
it chose to loll much closer to payment
last copple of years.
But, the other end of the division,
its high than did Union Pa¬
then, the market always goes has been outperforming its
cific.
sessions.
*
There
vidual
were
rails
*
it
also
a
tumble
that
when
St.
Louis
Francisco
directors'
not to take
over
ven,
too,
house.
had
-
San
decided
control via
bundle of stock held
investment
its
casualty
of
1953,
Needless to say,
better regarded
nothing official in the way of decisively.
to extremes.
few indi¬
responded
rapidly to dour news to keep
the carrier section heavy. Cen¬
tral of Georgia took a big
,
the
a
advance
is available.
❖
❖
Glass
have
makers
shown
good
itself
need
be
This
Economic
will
continue
gun.
It is
a
to
program
the
Other
reports
work here be-
duty of the AaminisCongress and
the people as
clearly
it
as
of
can
the major policies it aims to purEconomic
sue.
ture of
these
self.
in
has
past
of
least
the
been
governmental policy it-
government that wavers
policy or is excessively reti-
injurious
sumer
that
Movie
it
at times, be as
can,
business
to
confidence
as
a
and
con-
government
from
stocks,
while
neverthe¬
good account of
spectacular,
this
week joining
the others
in
making new highs. Owensthemselves. ^Twentieth Cen¬ Illinois Glass, which was best
less
gave
a
due to acting in the division a bit
of its back, took to the sidelines for
a
while for a deserved rest.
screen system and favor¬
reception to some of its But here, again, it did so with-
tury-Fox fared
one
growing
New
Ha¬
wide
weak
mo¬
able
best,
acceptance
economic develop-
including
its
own
myriad
activities;' it must be prepared to
take preventive as well as reme<Rai action; and it must put itself
in a state of readiness to cope with
new
situations that may arise,
has sought to con-
This Report
these basic principles, both in
its review of the directions taken
vey
^y governmental
past
being
recom-
But the question may be
mended.
the
Is
perity?
is
that
action
of
policv during the
and in the new program
year
proposed program
stable pros-
insure
to
Does
it
deal
adequately
with the economic conditions
are
currently emerging?
R not go too
that
Or, may
far and unleash new
inflationary forces? To these questions no answer can be both short
an(j honest
The
recommended
program
is
punitive measures, sound. It is designed to meet the
It is desirable, therefore, before needs
of the current situation, to
closing this Report, to answer as strengthen
the
basic expansive
far as we
properly cam at this forces of individual enterprise, and
time some of the questions about to
protect economic stability,
pursues
fluctuations
business
that
are
in
the minds of many citizens.
Need for Constant Vigilance and
Flexibility
discussions of the relation of
In
public policy to the business cycle,
this question is commonly raised:
At what point should or will the
in
act
Government
the
interest of checking
depression or
thought seems to
The
.
.
out
i
j
•
_
seriously threatening the
high
of
point
either 1952
or
views
|The
article
time
ii
do
not
coincide
Chronicle.
those of
its
range
in
1951.
expressed in
Rut nQ
wise,
ac¬
far tion, with Libbey-Owens-Ford
ment,
sufficient
the
not
A
its
economy
a
sitive to every
asked:
cent about
our
good chance of staying firmly on the road that separates inflation from recession, the
na-
the
If
Administration.
is to have
unr
of
1946,
guiding principle of this
a
is, by the
in
course
life
and
of
Act
Employment
and it is
things, surrounded by
certainties,
inflation?
group
of
tration to inform the
Federal
generally
principles
inflation.
and
fu-
government must be alert and sen-
the
to
expanding economy, free
the ravages of both defla-
tion
the
Gf
an
from
distant
employment and without price inThat was the basic intent
submitted
one
concrete
a
more
a
fiation.
Government
Report
general
veloped
or
panding economy with maximum
governmental action, and then defoster
as
ture, to the attainment of an ex-
by this Administration, began by
outlining
or
far
as
immediate
assume.
Congress, the first
Chap- '
administrative decithat is humanly
possible, to review from the standpoint of the contribution it is
likely to make, whether in the
'
by
notice
companions
that the Federal
aen
as
already have suggested,
of proposed
is to subject every act
points in a couple of hours. greatly lightened. But what priWhile not weak
vate economic groups do is not
with any conviction in the re¬ through markets both good A company denial sent it
mdependent of the directions
and bad, continued to run up
tumbling
but
the
play
didn't
actionary markets, neverthe¬
takert by public policy. By honora
rather commendable num¬
less they haven't shown any
die down completely when it ing the Employment Act and by
ber of appearances on the new
was
realized that the com¬ demonstrating full determination
particular enthusiasm when
to act as circumstances
require,
buying sets in. And they are high list. The issue reached pany statement was rather the government can create a clia
price that was not only best cautiously worded.
well below their previous
mate of economic opinion that will
for the; year but best since
high. Illinois Central is a case
Another of the individual foster stabilizing activities by private groups and thus ease the burin point. Or rumors of a big 1946 with only a meager frac¬
ent
stability, if not immediately,
a later day.
The new con-
business is
tasks
inevitably have
then in
uniform credit standards whether
then the
area,
implications for economic growth
businessmen should
respond
to changes in sales by
varying the effort put into selling
rather than investment outlays, if
spending,
handful of
a
the
prosperity,
ers
session the pre¬
added
ferred
of
program
a
stimulate
Telephone which
General
of the
The following is the complete text of this chapter of the Report:
early in the
production shifts here
encouraging. The classical and there
kept the group a
signs of strength, including
bit heavy.
Martin, as a mat¬
lighter volume on1 reactions
ter of fact, had been rather
and a good pickup in activity
popular recently as what the tures were American Car &
on more optimistic moments,
trade
calls
an
"interesting
were
present. And in hovering
Foundry issues.
A report of
speculation" and took its de¬ a
only a couple of points under
refinancing plan for the $7
fense cutback a bit hard.
the old high the issues that
preferred which entailed a
it
if
if
new
convertible issue,
comprise the senior index
An
aren't anywhere near any
independent favorite,
sparked interest in both the
critical level on the downside. despite the handicap of living
preferred itself and the com¬
some
final
drawn up
attention^ else¬
least
at
public works, accelerated depre¬
plants, and newly recommended agricul¬
measures,
defense
"Economic Report of the President,"
by the Council of Economic Advisers, of whom Arthur F.
Burns is Chairman, and Nbil H. Jacoby and Walter W. Stewart the
other two members, contains a discussion and recommendations for
dealing with economic instability.
who thought
profits taxes would di¬
investor
public
tural supports.
The
the beneficiaries of an end to
year.
Aircrafts, after their recent
high—a 24-year
those
confound
where
Aircrafts Slough Off
second attempt to pene¬
a
ket world at least,
vert
it
it
#
enough base
build up a strong
included in most
the indices
deprived of this benefit
were
the
catch up or
to
not those
stock averages so
of backing
case
a
filling either to give
and
are
a
Propose alternate
policies that can be readily supplemented or quickly modified
if they prove inadequate or carry the economy to threshold of
price inflation. Lists as Government's "arsenal of weapons":
credit controls, debt management techniques, budget admin¬
that, in the stock mar¬
the movie
persistent makers have the laugh on the
industry blamed for a large
week, a condition not at all buying reportedly for control.
The few carriers such as Rio part of their postwar troubles.
surprising in view of the tech¬
if
it
it
nical situation and the fact Grande, that showed indepen¬
dent strength including incluOils Surprise
that February isn't normally
siqn on the list of new highs,
Oils continue. in favor to
noted for
been car¬
Advisers, in Economic Report to Presi¬
need for constant vigilance and flexibility in
see
policy in relation to the business cycle.
sag so
ments; the stock has
Combating Economic Instability
Council of Economic
visions, however, continue to
Reactionary tendencies per¬
ried uphill well on
sisted in the stock market this
in
..
(580)
however learned or
predict with certainty
one,
the precise strength or influence
of a particular governmental progr»mFurther, apart from what
the government does, economic life
continually turns up new prob
lems and opportunities, as fresl*
developments occur in one or another part of the domestic front
or the international field.
The
government must be ready to deal
with numerous contingencies, andL
beware of tying the £ate of the
nation to a rigid economic program based on a categorical fore-
this
Instrumentalities of Policy
necessarily at any
those ,of the
In recognition of the
with
fallibility
economic forecasts, this Report
has recommended several meas-
They are presented as of
the author only.]
can
Volume 179
Number 5296
...
The Commercial and Financial Chronicle
(581)
that will automatically tend
to help maintain reasonable sta¬ their
families and communities.
prosperous, and enjoys great basic
ability of the bility. Nor will flexible policies The American people are highly strength, as Part II of this
Report
economy to resist either recession¬ aiming to minimize economic fluc¬ skilled, imaginative, enterprising, has indicated.
The minor read¬
ary
or
inflationary trends. But tuations be permitted to interfere and forward-looking.
The
best justment under way since midautomatic
stabilizers
cannot
be any more than is necessary with service that the government can
1953 is likely soon to come to a
counted on to do more than re¬ the fiscal
objective of bringing render to our economy, besides close,
especially if the recommen¬
strain
either
an
upward or a down the scale of Federal ex¬ helping to maintain stability and dations of the
Administration are
downward tendency of the econ¬ penditures,
reducing taxes, and insuring a floor of protection for adopted. These
recommendations,
omy. In view of their limitations, arriving at a budgetary balance. the
population, is therefore, to like the
ures
to
strengthen
because
and
of
the
of
analysis
the
impossibility
being entirely
sure in advance
precise effect of any gov¬
of the
ernmental
the
program,
govern¬
ment will pursue flexible
in the future
policies
it has in the past
as
year—that is, policies that can be
readily supplemented if they prove
inadequate,
quickly
or
modified
if they
carry the economy to the
threshold of price inflation.
The arsenal
of weapons at the
of government is very
formidable. It includes credit con¬
disposal
,
trols administered by
create
an
environment
in
of
the
Pryor Exec. V.-P. of
Milwaukee Company
MILWAUKEE, Wis.—The
of
directors
of
The
Company, 207 East Michigan St.,
Thursday, Jan. 28, elected Earl
situation on which
they are based, Pryor Executive Vice-President of
are eager to make new jobs,
envision a sustained improvement the
company. Mr. Pryor was Pres¬
acquire new tools of produc¬
help to maintain prosperity. But tion, to improve or scrap the old in American living standards and ident of Edgar, Ricker &
Co., one
it is well to recall the accumu¬
ones, design new products and de¬ a j broadly
expanding economy. of the oldest investment houses in
lated experience of generations velop new markets, increase effi¬
There is every reason for confi¬
Wisconsin, at the time it was
which has taught us that no gov¬ ciency all -around, and thus be
dence that our system of individ¬ merged with The Milwaukee
ernment can of itself create real able and willing to
Com¬
pay: higher
and lasting prosperity.' A thriving wages and
provide better working ual enterprise, which is one of the pany in 1941. He became associ¬
economy depends fundamentally conditions. The Federal. Govern¬ wonders of the
world, will long ated with Edgar, Ricker & Co. in
on
the enterprise of millions of ment is fostering and will continue continue to
be a producer of everr 1911. Mr. Pryot was a
founder of
individuals, acting in their own to foster this kind of environment. increasing wealth and widely The Milwaukee Bond
Club, in
The Basis for Progress
The
government
interests
and
in
can
the
men
greatly
interests
of
to
Our
economy
today
is
highly diffused well-being.
which he is still active.
-
I
'
techniques of the Treasury, and
the authority of the President to
vary the terms of mortgages car¬
rying Federal insurance, apart
from
the
wide
extension
that
of
authority recommended in this
Report.'It includes the administra¬
tion of the
budget, which permits
flexibility than is commonly
appreciated, quite apart from new
legislation or new appropriations
by the Congress. It includes also
more
other
areas of action, such as tax¬
ation, public works, accelerated
depreciation for defense plants,
and the
newly recommended agri¬
cultural supports.
And if the pow¬
ers
possessed by
the Executive
should need to be increased to
cope with some new economic de¬
velopment, the Administration will
promptly seek from the Congress
additional
authority
that
it
requires.
Actions
Since
different
Case
causes
different
of
Need
troubles
have
and often require
treatment,
of specific
blueprint
be
in
economic
detailed
no
actions
can
responsibly laid down in ad¬
the
of
vance
event.
There
are,
however, certain broad principles
that
will
tion
in
threat
guide
this
Administra¬
dealing with the possible
of
a
depression.
These
should be made clear.
The first and foremost
is
to
as
principle
preventive action, as
during the past year and
take
done
was
is further recommended in this
Report.
to
The
avoid
work
second
principle
doctrinaire
a
simultaneously
is
position,
on
several
fronts, and make sure that the ac¬
tions being taken harmonize and
reinforce one another. The third
basic principle is to pursue meas¬
ures that will foster the
expansion
of private
activity, by stimulating
to
consumers
and
spend
businessmen
jobs,
that
so
resume
more
to
the
money
create
economy
more
may
its
growth with new
The fourth principle is
strength.
to act promptly and
economic
vigorously if
conditions
require
it.
The government will not hesitate
to make greater use of
monetary,
debt management, and credit
pol¬
icy,
including
liberalized
use
of
Federal insurance of private obli¬
gations,
or to modify the tax struc¬
ture, or to reduce taxes, or to
expand on a large scale the con¬
struction
or
to
be
may
ment
deal
of
useful
public works,
other steps that
necessary.
The govern¬
take
must
with
any
and
any
will be ready to
contingencies that
arise. An essential part of
preparedness under present
circumstances is a higher Federal
long Distance puts extra hours in
selling day
every
'
■/
may
this
debt limit, which is
already nec¬
essary for the efficient conduct of
the
government's
current
opera¬
tions.
Long Distance is quick, direct. It mul¬
tiplies your salesman's time—sends him
North, East, South, Wqst, in
a
matter
man at
doors to reach the
the right time.
It arranges appointments, helps to
close sales. Provides frequent contact
stant
between
stirring
variations
to occur in
in
a
meddling. Minor
activity are bound
or
free economy, or for
that matter in any type of
omy.
The
weapons
the
arsenal
will
be
of
government
more
upon
by
boldly, but not
frequently than is required
trips. Cleats
complaints.
up
questions and
LONG DISTANCE RATES ARE LOW
Here
are
some
examples:
Philadelphia to New York 50c
We Have Some
developed
Helpful Suggestions.
a
number of plans for
the
profitable and economical use of Long
we will be glad to discuss them
with you. fust call your Bell Telephone
Distance and
Business Office.
Syracuse to Boston 90c
Washington to Detroit $1.10
Dallas to Atlanta $1.50
New York to San Francisco
These
are
federal
BELL TELEPHONE SYSTEM
$2.50
daytime rates for 3-minute
station-to-station
econ¬
stabilizing
drawn
best key to more
productive selling. You can prove it
profitably in your own business.
We have
The need for constant
vigilance
and preparedness
by government
does not, however,
con¬
In short, it is your
©f minutes. It opens
right
justify
board
Milwaukee
on
current
which
the Federal
Reserve System, debt management
the
17
excise
-tales we even
calls, not including
tax.
Long
Distance
lower after six every
evening and all day Sunday.
/<
"
The Commercial and Financial Chronicle
18
tions
Eisenhower. Outlines
approximately $700 million
funds
of
loan
in
capital
message
President Dwight D.
special message in which he
proposals for legislation re¬
a
made
garding
ing
and extended hous¬
a new
program.
of the President's mes¬
The text
follows:
sage
TO
<
UNITED STATES:
I submit herewith measures de¬
signed to
efforts of
promote the
to
people
our
good
.homes, and to
assist
s o me
which
in
American
'"families
may
'live and pros¬
The
per.
de¬
under
which
Ameri¬
family
can
areas
should be established to en¬
able
smaller
unlimited
which
metropolitan
resources
grow
I
am
is
Eisenhower
Pres.
convinced that every
good health among
people. Second, a high level
of housing construction and vig¬
orous community development are
and
economic and so¬
essential to the
It
being of our country.
that
appropriation
home.
working toward this goal, we
complacent. The Fed¬
eral
Government
must
provide
In
must not be
aggressive and positive leadership.
our
time actions and pro¬
ernment
needs.
be avoided that would
citizens increasingly de-
Gov¬
their housing
believe
We
needed
that
best be made by full
progress can
utilization
effective
and
Federal
upon the
to supply
pendent
of
our
competitive economy with its vast
resources
for
building and financ¬
ing homes for
our
The building of
vides
only
people.
new
partial
a
homes pro¬
solution
to
the housing problem. The nation
tremendous assets in its 37
-has
million
existing
The fact that
nonfarm
homes.
million of
20
these
owner-occupied demonstrates
continuing efforts of our peo¬
ple to have their own homes,
where they can raise their fami¬
lies in self-respect
and in good
surroundings. But 19 million of
are
'
the
nonfarm homes are
We must
encourage
the conservation and
improvement of our existing sup¬
ply of homes for the important
our
existing
more
-
*
,
than 30 years old.
contribution,
the
raising
standards.
■
,
„
Our
this
also analyzed nu¬
proposals for the develop¬
ment of a program better adapted
merous
to
conclusions
The
ments.
require¬
housing
present
our
ern
national
of
con-
Millions
of
live in run-down, de¬
The
na¬
tional interest demands the elimi¬
nation of slum conditions and the
rehabilitation
of
declining neigh¬
borhoods. Many of our local com¬
munities have made good progress
in this work and are eager to make
further
but
substantial
are
needed
hard
put
improvements
to
find
the
resources.
knowledge, the skills, the
resources and, most
important, the
will to do this
job already exist
in
the nation.
conservation,
and similar activities in the
I
recognize,
public
did the
as
inflationary
defla¬
or
tionary pressures can be accentu¬
ated or diminished by mortgage
credit terms, government opera¬
of
tions in connection with the insur¬
families
income
lower
an
oppor¬
Federal
Housing Administration
guaranteed by the Veterans
Administration.
Such
authority
tunity to own or rent a suitable
been
fully
and
/
new
tested
programs
and
shown
have
performance
have
adjustments, within
limits, in
would permit
actual
by
statutory
appropriate
their
interest
maximum
in
and
rates
We have
home-building,industry
private
and homea
28.
Jan.
v
up
good
to mod¬
con¬
is
In
mended.
addition
this
to
re¬
which
experience
has
re¬
public hous¬
enough,
therefore,
homes
in
to
obsolete
;
iv
vable
turning
areas,
sal-
them
into
the
to
The
Group
National
their
income
Families
sured
terms
maximum
or
economic
their
permissible
in loan limitations and terms
thorized
for
the
■-
-
.
.
au¬
rehabilitation
healthy neighborhoods by multiple
dwellings.
replanning, removing congestion, terms of such loans
;
of
such
families
of. slum
Since
the
have
not
gage
of
through the misuse
clearance
shall encourage
we
changed for 15 years, these ad¬
justments are obviously needed to
help our citizens repair and im¬
prove their homes.
and
programs;
adequate mort¬
housing for such families
good,
on
third
new
effective attack
of
these
essential
approach will help
munities to
the
on
well-located
sites.
the full retirement of government
funds
from
market
deal
other two.
tasks.
A
our com¬
effectively with
I, therefore, make
the following recommendations:
(1) Title I of the Housing Act of
should
1949
be
broadened.
.should make available
of loans and
the
of
gram,
It
program
grants for the.reno¬
salvable
outright
salvable
a
areas
elimination
slums.
Under
and
for
of
non¬
this
pro¬
there would be immediately
available from existing authoriza¬
The continued lack of adequate
housing, both
low-income
of
new
and used, for
families
past failures
is
evidence
in improving the
of
There
and
are
certain
numerous
deficiencies
necessary
tional
obsolete
provisions
Housing Act.
in
and
un¬
the
Na¬
The Housing
Administrator will present to the
appropriate
Committees
the
of
recommendations will increase the
to modernize this basic law. These
opportunities
recommendations
low
older
homes.
and
more
*
But
positive
a
more
direct
approach
to
this serious, problem must be taken
to
stock of the
purchase the initial
reorganized association, but pri¬
capital funds supplied by the
users
of
the facility should
be
vate
built
to speed the retirement
government's initial invest¬
up
of the
ment.
should
Mortgage
be
Federal
reorganized
The
(2)
National
Association
basic re¬
three
given
sponsibilities:
First: It should be authorized to
issue
its
own
bentures
nonguaranteed de¬
private market.
so obtained, it can
the
on
With the funds
a
desirable service by
buying mortgages at market rates
perform
in
areas
are
investment funds
where
for
scarce,
where there is
a
resale
There is need for
to
a
in
areas
surplus of funds.
an
organization
out this true function of
secondary market.
carry
The
Second:
should
be
new
Association
authorized
to
manage
a
number
of
will
of
mortgage
related
proposals
include
creased cost of both
ceilings
to
be made
liquidation is to be
accomplished in an orderly man¬
and in such
in¬
single-family
by the government. I recommend, and multi-family structures and
therefore, a new and experimental
complementary revisions in mort¬
program under ;which the Federal
Housing Administration would be gage ceilings for cooperative
authorized
to
insure
long-term projects.
Since
borrower.
in
were
used
to
way as
pro¬
these
assets,
funds
acquisition of
Treasury
the
all proceeds of
this
liquidation should be returned to
the Treasury.
.
' :
Third: The President should be
a
more
the
a
tect the interests of the individual
enabled
scale
realistically
It should
assets.
clear that such
Congress
with
Federal
The
Government should be enabled
owned
National
housing conditions of all of our
people. Approval of my preceding
of
many
families
incomes to buy good
mortgage
secondary
operations.
liquidate present mortgage
holdings which are governmentHousing Act
Housing for Low-Income Families
only the
at
they
in the
readily salable
private market. The following
changes should therefore be made:
ner
an
prices
not
are
and
III
Existing housing programs per¬
mit
mortgages
the
and
which they were purchased,
financing for the construction
new
Modernization
•
Third: Clearance and redevelop¬
ment of nonsalvable slums.
these
which
on
written
gage
status, have had the least oppor¬
sound,
.
in¬
guaranteed and in¬
mortgages. Because of the
Minority
of
Problems
Housing
To encourage the
Housing Act:(1)
of
result
a
(1) The Federal National Mort¬
Association should be reor¬
maintenance and improvement of
It must be frankly and honestly ganized to require the users of the
homes wherever located, I
rec¬ acknowledged that many members facility to invest funds on a basis
ommend the following additional
would eventually
permit
of minority groups, regardless of which
Prevention
Rehabilitation
As
in
'
Second:
primary lender
secondary source
substantial frozen
with
itself
were
vealed in the present
a
a
credit.
mortgage
amendments to correct various de¬
fects
as
rather than as
of
the Federal Na¬
Association has
Mortgage
vestments
ing program.
not
tional
functioned
Market
Mortgage
Secondary
In recent years
of the public
program,; the
Housing
Administrator w id 1
recommend
extension
quested
housing
.
f
vn
the Federal Government now finds
the other measures I have recom¬
tunity of all of our citizens to ac¬
terms authorized for the insurance quire good homes. Some progress,
of Slums
of loans on existing homes should although far too little, has been
In order to clear our slums and
be
made
comparable
to
those made by the Housing Agency in
blighted areas and to improve our
available for new housing.
This encouraging the production and
communities, we must eliminate
amendment will end the present financing
of adequate housing
the causes of slums and blight.
available to members of minority
This is essentially a problem for discriminatory policy which favors
the purchasing of new as against
groups. However, the administra¬
our
cities.
However, Federal as¬
It should
have tive policies governing the opera¬
sistance is justified for communi¬ existing homes.
the important additional advan¬ tions of the several housing agen¬
ties which face up to the problem
of neighborhood decay and under¬ tage of facilitating the trading in cies must be, and they will be,
of
older
homes
on
new
home materially strengthened and aug¬
take long-range programs directed
purchases.
mented in order to assure equal
to its prevention.
The main ele¬
ments of such programs
(2) The maximum loan which opportunity for all of our citizens
should
can
be insured under Title I of to
acquire, within their means,
include:
the National Housing Act to re¬ good and well-located homes. We
First: Prevention of the spread
shall
take
steps to insure that
of blight into good areas of the pair and modernize single-family
homes should be increased from families of minority groups dis¬
community through strict enforce¬
placed by urban .redevelopment
ment of housing and neighborhood $2,500 to $3,000 and the maximum
term
should
be
extended
from operations have.a fair opportunity
standards
and
strict occupancy
three years to five years.
Com¬ to acquire adequate housing; we
controls;
parable revisions should be made shall, prevent the dislocation of
vation
The
kept in
brought
are
neighborhoods.
and
housing
deficiencies
neighborhoods.
and
be
can
amendments
Rehabilitation
Elimination
tures;
housing
clining
rehabilitation,
result
a
$5
standards of comfort and
It
I
i
homes
rehabilitate
needs.
Neighborhood
of
venience.
provide an entirely new approach
to the task of meeting our housing
habilitation of deteriorated struc¬
,
more
slum
as
housing
repair and
Committee, and the results of our
own studies and experience in ad¬
to
people still live in slums. Mil¬
lions
other
directed
these
this
of
providing parks and playgrounds,
reorganizing streets and traffic,
and
by facilitating physical re¬
make
can
tinue to be serious.
our
homes
seek
authorize
million
Congress
ing homes in good condition. Mil¬
lions of our people live in older
homes in which they have invested
their savings; our people and our
economy
will greatly benefit if
therefore, properly a concern ministering present housing laws,
government to insure that are reflected in the recommenda¬
opportunities are provided every tions I am about to propose. Sev¬
American family to acquire a good
eral of these recommendations
grams must
Guaranteed Mortgages
Because
activities have eligible families should be given
mainly to increas¬ to those who must be relocated
ing the production of new homes. because of >slum clearance, neigh¬
But while the high demand for borhood rehabilitation, or similar
new
homes
will
continue,
and public action^.
The continuance
while private activity will be en¬ of this program will be reviewed
couraged to meet that demand, before the end of the four-year
we must also undertake the longperiod, when adequate evidence
delayed job of maintaining exist¬ exists to determine the success of
been
mortgage finance, and community
programs. It has
the
Federal
Government Hous¬
on
is,
make
for lowapplication
The
authority should be
limited to those families who must
new
-
to
necessary
cent home if the
of this
same
this
area
American
can
our
At the
and
communities
arrest the spread
of slum conditions. I recommend
development.
Under the Chair¬
good housing is a major
manship of the Housing and Home
objective of national policy. It is Finance Administrator, this Com¬
important for two reasons. First, mittee has made an exhaustive
good housing in good neighbor¬
study of existing Federal housing
hoods is necessary for good citi¬
cial well
dwellings,
families/
income
of
planning agen¬ home.
Until these
do. the planning job which
cies to
independence, pride and
of
the American
from the
existing
and
their
We have the
obtain
zenship
in¬
to
panding populations.
ing Policies and Programs, con¬
sisting of leading citizens experi¬
enced in the problems of housing,
condi tions
every
physical plants and
growth and develop¬
proportionate to their ex¬
sound
ment
Committee
of
velopment
this
VI
Adjustment of Permissible Terms
of Government Insured or
the success, we should continue at a loan-to-value ratios and maturi¬
.for reasonable level the public hous¬ ties. This action
by the Congress
this purpose.
and
ing program authorized by the would materially strengthen our
State and Federal Governments,
Housing Act of 1949.
I recom¬ ability to stabilize economic ac¬
II
as well as individual citizens, will
mend, therefore, that the Congress tivity and high levels of produc¬
Conserv"T«ini">vement of authorize construction,
during the tion and employment. A fuller
put their abilities and determina¬
Existing
Housing
tion energetically to the task.
next four years, of 140,000 units discussion of the
importance of
Because of the, housing short¬ of new public housing, to be built this recommendation will be in¬
To help find the best way to
in
annual
increments
of
35,000 cluded in the Economic Report to
the
meet our national housing needs, ages that developed during
Special preference among be submitted to the Congress on
I recently appointed an Advisory depression and war years, recent units.
neighborhoods
i
Thursday, February 4, 1954
.
ance
or
guarantee of mortgage
Committee, that this
loans should
be judiciously ad¬
to insure private credit used
to program represents a challenge to justed to prevailing economic con¬
rehabilitate
homes
in
declining, private builders and lenders. In ditions. The
Congress has already
neighborhoods. This new program order to assist them in meeting given the President limited au¬
should be limited to specific areas this challenge, a greater propor¬
thority to adjust from time to
where the local community
has tion of the risk should be under¬
time, in the light of economic con¬
given adequate assurances that it written by the Federal Housing
ditions, the permissible terms on
will carry out a workable plan of Administration than it regularly
government guaranteed and in¬
insures.
The successful develop¬
neighborhood renewal.
sured mortgages. I urge the Con¬
(3)
A
program
of
matching ment of this program will afford
gress to broaden this authority to
grants to States and metropolitan a much greater proportion of our cover all loans insured
by the
family can have a de¬
builders, lenders,
communities and the local,
our
develop
who 1e
pressed, they are increasingly alert
to the
need both for improving
citizen.
communities
to
institutions that are
and vigorous. We have a
highly skilled labor force. Sav¬
ings are high. While some of our
communities are financially hard-
strong
their existing
our
by
Housing Ad¬ interest.
ministration should be authorized Advisory
determination
acquire
J
.
with
amounts,
initial payment, on both new
low
Federal
The
(2)
financing
for
THE
OF
CONGRESS
THE
As
modest
of
loans
efforts, I shall request such addi¬
tional loan and grant authoriza¬
tions as can be effectively used.
Jan. 25, proposes
other
institution to furnish a
to Congress on
things, recommends creation of an
secondary mortgage market.
On Jan. 23,
funds.
enabled
the scope and pace of
crease
broadening of present housing legislation, and, among
Eisenhower submitted to Congress
are
million
$250
broadened authorization
Housing Program
President, in special
-and
grant
communities
,
.
(582)
to
National
authorize
the
Federal
Mortgage Association to
borrow
directly from the Treasury
of purchasing
of insured
guaranteed loans when the
for the sole purpose
certain kinds and types
and
President
to
be
terest.
determines such
necessary
For this
action
in the public in¬
purpose
the bor-
Volume 179
Number 5296
..
.
The Commercial and Financial Chronicle
(583)
rowing authority of the Associa¬
tion should be limited to
a
reason¬
Treasury borrow¬
ing authorization of the Associa¬
tion.
Although
U. S. Economic Battlefield
outright primary
support for certain types of loans
support should
funds
and
be
the direct
as
for
the
should
mortgage
extent
be
of
such
support
closely controlled.
^ Approval of these recommenda¬
tions will correct the most serious
defects
the
of
present
mortgage
purchasing operations of the Fed¬
eral Government and will author¬
ize an effective
flexible authority under which the
Federal
Government
could
di¬
rectly purchase mortgages, should
economic conditions and the
lic
interest
indicate
such action.
'
the
aspects of this action
anxious
eyes
for
press
conditions
scanning
are
about
news
in
the
the
that
factory.
The Housing and Home
Finance Agency is a
loosely knit
federation of separate
organiza¬
that
tions. Its present structure is
Battle of Ger¬
expect
efficient
the
cum¬
to
submit to
Or. Paul
Einzig
the Congress
give
This
rise
fatalism
to
this
authority.
,
*
I
believe
fers
the
*
that
means
of¬
message
whereby
our
na¬
tion may provide more and
better
homes for our families.
By apply¬
ing
these
shall add
health
recommendations
to
of
our
strengthen
cial
of
comfort
people;
the
fibers
shall
the
reinforce
to
and
so¬
nation; and
the
our
of
have
and
brought
land.
I
urge,
control."
tion
Our
The
of this
DWIGHT D. EISENHOWER
House,
January 25, 1954.
Board
of
ciation
being
of
C.
Stock
—
Ar¬
completed
meeting
Governors
would
of
of
the
the Asso¬
Exchange Firms
Treasurer
Folger, Nolan-W. B. Hibbs
&
of
Co.-,
Inc., is the local Governor of the
Association in charge of arrange¬
ments.
Of the 35 members of the
Board
representing the securities
industry from 19 leading cities, 34
are
expected to attend.
The meeting will be
by
a
on
Monday
dinner at
which Keith
the
New
the
highlighted
Statler
evening,
Hotel
Feb.
15, at
Funston, President of
York
Stock
Exchange,
will make the address of the
ning.
At
luncheon
Governors
Potomac
will
be
Electric
that
eve¬
day
guests
of
the
the
Power Co.
adop¬
mean
a
is
the
efforts
to
recession.
the
pro¬
of
The view
Finance
should
Ministers
be
possible
little
as
about
This is
of prepared¬
a
There
be
applied
can
be
in
case
recession
of
i
that
at
the
that
were
For there
the
Sterling
effective
means
of
is
the
under consid¬
can
be
Area
at its
the
slump
has
the
merely
deflationary
of prices
in
net
a
that
is
risk
it
would
the
for
entail
governments
Should
there
be
a
it
they
would
suffer
their commodity
on
This
risk
with
the
full
would
in
of
an
-
financial,
eco¬
greatly outweigh
slump.
arising
any
effectively
support
American
action
any
to
Area
-
official
check
throughout the country to discuss
problems of the industry. Horace
able to
partner
of
Tucker, Anthony & Co., in Boston,
is the current President and
will
preside at business sessions and
the dinner.
at
slump.
a
Possibly in addition to the
other
Sterling Area countries would be
crease
secure
such
dollar loans to in¬
supporting purchases.
Provided that the acquisition of
dollar commodities is confined to
be
concerted
action
Between
our
overwhelmingly
with
enough
our
in
some
form
the
dollars
need
for
watts
for
a
together have
generating
furthering
see
pany
plan.
recently
merit
in
engaged in
the
Col.
of
•
Federal
five-com¬
Commenting
was
an
capacity
exclusively
dams
F.
upon:
it
S.
Tandy,
Walla Walla Corps of Engineers.
the
the
favorable
we can
next
go
rapidly
needs
see
has
of
20
our
years.
combined
a
to 200,000 kilo¬
for the next 20 years
willing
are
to
spend
about $50 million a
year to pro¬
vide that power. I have
long felt
that power
shortages will continue
in any area so
long as the
people
National
of
new
power
effect have been
left to local
plan
appropriations
more
further
for
the
atomic
plant
at
Paducah, Ky. Another is the Ohio
Valley Electric Co., comprised of
15
companies
which
like
are
will
supply
hydrogen bomb plant.
the
proposed
com¬
weeks
after the
five-com¬
Power
Commission
for
permits
survey
on
prospective dam sites on the
Clearwater River of Idaho., The
dams
would
have
potential
a
of
536,000 kilowatts.
With such features
on
flood
as
con¬
trol, storage and whatever irriga¬
tion, navigation and recreation
features there might be, the dams
would cost about $305 million, ac¬
pri¬
cording
thus
and
power
group
two
public interests.
five-company
One, a
known as
Energy, Inc., will supply
five-company
Electric
preliminary
Ways and
for putting that policy into
vate and
elsewhere in the country.
Federal
"partnership basis."
means
projects.
Precedents have been set by two
combinations of power companies
plan was announced,
the
companies had taken their first
step
together.
They asked I the
Administration's
needed
multi-company
Two
state and local power
groups to
accept responsibility for the gen¬
a
possibility.
It
would be owned by the member
companies. Patterns already exist
for financing and operating such
pany
of those
policy, which challenges regional,
eration
a
plants.
purpose
projects by
investment
capital, with the Federal Govern¬
the
has been
company
as
bination except that power would
go to utility customers, not bomb
the plan calls for
the development of entire multi¬
to
mentioned
Both
Essentially,
contributing the cost
clear.
generating
power for a
supply."
ment
partnership is established, the
A
150,000
year
and, they
to
Army Engineers'
Flood
ures.
control
larly important
;
One dam
is
is
fig¬
particu¬
a
item.
at Bruces
Eddy
on
the north fork of the Clearwater.
years.
between
Fred
public
and
Aandahl,
eration,
private
be
a
received
"In the Pacific
all
we
power
officially.
He
have
Northwest, where
heard
is
a
story
shortage that must be
of
sup¬
244,000
acre
000
cline of American imports result¬
ernment, local interests, about half
2,300
ing from
public and half private, have taken
fill
The
the
a
gap
created
by
a
de¬
recession.
fact that preparations
actions have been made
mere
for such
well in advance should
go
a
long
way
'
other
would
be
a
power
kilowatts
be 576 feet
installation of
and
feet of storage.
1,430,000
Penny Cliffs
would be 596 feet high with 292,-
plied mostly by the Federal Gov¬
to
and
Both
Bruces Eddy would
high with
speech:
control
uses.
rock fill dams.
*
may
said in
flood
beneficial
Assistant
Secretary, indicated how the plan
needed
futile and is liable to weaken the
be
Washington, Ore¬
companies
installed
the
confer
program
to meet
"The companies
power,
States Government could recipro¬
cate the assistance by providing
im¬
must
to
proposal
and I am confident that
ance
them
ported in any case from the Dol¬
which
The
be¬
towards preventing a slump.
Secrecy in this sphere is utterly
commodities
in
users
on
should
the
would
purpose
actual reserves, Britain and
resident
here
•
that
.
serve
cumulated
they would
would be a mere drop in the ocean .be in a much
stronger position to
in face of a major recession in
prevent a slump by coordinating
the United States.
Even so, the their interventions in the com¬
use of a large
proportion of that modity
markets.
The
United
The Association Board meets at
least three times a year in cities
Frost,
been
over
conceivable
ment.
for
companies may
later.
group
800,000 elec¬
customers, nearly 50% of all
way is
"Response to
ment
'
W.
when
develop¬
from
modities
reserve
Portland
Approval has already been re¬ The other,
Penny Cliffs, is on the
commodity reserves ac¬
ceived
from the
Department of
in an attempt at pre¬
middle fork. Together they would
Interior. Ralph Tudor, Undersec¬
venting such unemployment.
retary, recently gave approval to provide about 3,730,000 acre feet
What
matters
is
that
there the plan.
Although careful to bal¬ of useful storage for power gen¬
losses
I
Dollar
York
the plan:
would enable the Federal Govern¬
ment to spread its river
unemployment would
tween the governments concerned
and the
United States Govern¬
the
New
on
The
conse¬
American
deficits
be
compari¬
Sterling Area gold reserve avail¬
able for the acquisition of com¬
from
Gov¬
avoiding a major slump would features which produce no direct
greatly outweigh the disadvan¬ revenues, such as irrigation, flood
tages of such an increase,
control, navigation and recreation.
The plan is in direct
A possible argument against the
response
Budgetary
large-scale
very
of
if the
the advantages
quences
disposal for
amount
beyond
go
nomic, social and political
doubt
no
on
increase
son
Sterling Area.
true
a
Even
negligible, however,
Amer¬
an
world trends.
Fore¬
most among them would be the
building up of substantial com¬
modity reserves by the govern¬
It
They could build
result
reserves.
influencing
ments
lim¬
inflationary expendi¬
heavy losses
Commonwealth
help in mitigating
ican recession
be
forces and should
prevent
It is even conceivable
that suggestions of ways in which
and
buying
slump in spite of their efforts to
Sydney.
Britain
pro¬
United
for
may
slump.
a
should
grave
Ameri¬
discussed
were
to
concerned.
would
an
the
to
ernment, ac¬
cording to a
plan put forth
J. E. Corette
More
the
20* 1,400,000 kilowatts. '
be
Even men formerly
can
cost
Federal
customers
proposal
which
for
into
power
cus-,
of
would
doubt
no
measures
no
formidable
ture
favorable effect.
can
various
years
most unlimited.
counteracting
American
to meet the
emergency
of
Co.,
gon, northern Idaho and Montana.
,
estimated,
generated at
ahead
effect of the
public
titude, for evidence
produce
the
resources
commodities
antidote
that
mistaken at¬
meet
inflationary. But then inflation is rely entirely upon the Federal
precisely what is needed as an Government for their power
ac¬
a
ness
Their
of
as
slump in
own
large scale would entail deficit
financing and would be distinctly
taken at
was
en¬
to
Power
The members
oV new" tric
tomers
prevent
a
American trade
an
Corette."
needs
market
the
towards the prevention of
in world prices.
V
Sydney meeting of Common¬
as
in
stockpiles of rub¬
ber, tin, wool, jute, etc. In doing
so
they would greatly contribute
highly damaging
plans
come
E.
the
thus
are
Admittedly such operations
extensive
companies.
J.
electrical
ited, but those available for buy¬
ing sterling commodities are al¬
up
concerned have not produced and
eration.
Nolan, Executive
may
nouncement of
watts
sterling
the world
assist
well
as
dollar
no
effect of such demoralization it is
deplorable that the governments
ington in 1950 and 1947.
and
trade
on
an
Enough kilo-:
dollar
Water
General Electric, Pacific Power &
an-, Light and Mountain States Power
products
States.
be abandoned.
could
James Parker
be
have
widespread
In view of the
which will be held at the Shoreham Hotel here Feb. 15-17. Sim¬
ilar meetings were held in Wash¬
Vice-President
ing to
a
slump in the United
Any slump in Sterling
ducers
depends
we
buying
If supplies
to prevent such a
interests of their
the
demands and efforts to resist them
there
WASHINGTON, D.
to
tion
and export more.
It
that restraint on wage
more
recession.
rangements are
for
the
winter
given, a
treatment, accord¬
"The interest shown by these
by five of the
resulting from a Northwest's investor-owned power companies is evidence that the
decline of American
partnership program of the Ad¬
buying would companies.
Mr.
aggravate the slump in the United
Corette, President of the ministration will work."
States.
The governments of the Montana Power Co. and
The plan in its essence is a sim¬
spokes¬
Sterling Area are well in a posi¬ man for the companies, said in ple one. As soon as a pattern for
Area
At¬
duce
may mean
talk
Exchange Firms Govs.
To Meet in Washington
the
of
States.
to
of
wealth
The White
of
by
from
would
tion
on
relaxation
tion in face of
its
fate
attitude
to
recommendations
this
degree of
American
which
over
published
these
withheld
United
liable
are
an
therefore, that the Congress give
early and favorable consideration.
economic
side
exertions
our
factors
we
freedom
self-reliance which
greatness
shall
we
economic
our
we
the
and
or
tends
also
Included in the plan at present
Montana Power Co., Washing¬
ton
reserves
buying
with
a
cession
"What is the use,"
many
people ask themselves, "of exert¬
ing ourselves if the utmost results
recession?
*
this
lost
to
years.
are
ergy
addition
commodities.
the
certain
a
on
wiped out by
supervisory
of
the
twenty
been
position to assist in the pre¬
vention of a major American re¬
the
won
conviction
lantic.
a
Battle
the
States.
reorganization plan to provide
better grouping of
housing ac¬
tivities headed
by an Adminis¬
trator with adequate
a
in
matter,
battlefields of
acieve
management
under its present structure. I
shall,
therefore,
into
reserve
them before it is too
on
late.
Pacific
has
commodities, the British and Ster¬
ling Area governments would be
many, etc.—of
1954 will be
adminis¬
it
In
for
or,
France,
and" lacks
can
—
phrase
a
needed.
Battle of Brit¬
trative authority.
The result is
confusing to the public. Neither
the Congress nor the
Executive
and
next
"Cheap power,"
economy
gold
improve
com¬
Corette, President of Montana
able to import such commodi-r
ties
that
the
gold
reserve
economic
ain
good
E.
tremendous appeal in
the
inade¬
are
Power Company, as
spokesman for five Northwest investor-owned
power com¬
panies, says a plan has been developed to meet combined need
of 150,000 to 200,000 additional
kilowatts a year during
slump.
a
If they
Pacific Northwest Power Needs
J.
be
interest
aware
The present organization of Fed¬
eral housing activities is
unsatis¬
Branch
to
slump.
a
Companies Meet
~
of
needed.
adequate they
helpful in prevent¬
Private
,
is
the
inefficient
if
are
on which the
gold
would have to be
spent sooner or
later. It is
precisely in order to
subject
with
recognition
taken
of commodities
follows
the
antidote
an
of
States.
who
Activities
clearcut
plans
Area, the operation would Northwest,
merely amount to the conversion new
Everybody
Reorganization of Federal Housing
bersome,
the
be
would be very
lar
business
United
for
vm
.
as
LONDON, Eng.—Day after day
pub¬
need
If
would
inflationary
secondary market
facility, relying primarily on pri¬
vate financing. It will also
provide
ing
pel the governments concerned to
Einzig, foreseeing possibilities of recession in U. S., along
its unfavorable impact in Britain and
elsewhere, says
Sterling Area should anticipate this eventuality by building up
substantial commodity reserves.
Holds use of large part of
Sterling Area's gold reserves would effectively support any
official American action to check a
slump. Also advocates
Sterling Area buy their own commodities, since any
slump
in Sterling Area
products resulting from decline of American
buying, would aggravate a U. S. slump. Defends
Treasury
purchasing,
plans
any
tion
with
of
of
quate timely criticism would
Dr.
clearly identi¬
use
effect
that may exist.
It is not enough
to give vague assurances that ac¬
By PAUL EINZIG
may be desirable in the public
interest from time to
time, this
fied
preventive
Steiling Area Interested in the
able amount to be made available
from the present
19
kilowatts
acre
There
is
of
feet
capacity ! and
of
storage.
least
at
one
aspect of
the initial steps to start construc¬
the companies' hope for the Clear¬
tion of 4,150,000 kilowatts of gen¬
water
erating capacity.
most
policy
The
new
power
is bringing wholesome
results."
+
which
is
unique.
Unlike
major dam sites in the North¬
west, the proposed dams
tively noncontroversial.
i
are
rela¬
The Commercial and Financial Chronicle
20
S. S. Hall,
Samuel
Thursday, February 4, 1954
.
to
New York City.,
Stock
York
Exchange, the
firm
a
Hall
n-
Mr.
nounced,
for¬
was
merly
invest¬
ment
officer
Foun¬
finan-
negie
dation,
c
Car-
the
of
i
V i
1
a
c e-
of
Presi dent
government market ha^ taken the large refunding pretty
even though some of the outstanding issues have
been knocked from their high perches. The market was vulneiable to some kind of a reaction in spite of the refunding because
The
ance
S.
Hall, Jr.
more
V ice-Presi¬
dent and
director of Husky Oil
a
He is a director of
Co., St. LouisSan Francisco Railway, and Greer
Corporation.
Thatcher
Furnace
Hydraulics, Inc., and is Treasurer
General Theological Seminary
of
"
Episcopal Church of
of Protestant
U./S.
Wm.
Boggs V.-P. of
John R. Roland Go.
William
of
election
The
II.
Vice-President of John
& Co., Inc., 30 Broad
Street, New York City, member
Boggs as
Boland
R.
of
Na-
the
that there
no
are
have less violent and sharp
John
land, Presi-
Mr.
have been lost through
was
Carl
M.
range
Loeb, Rhoades
is
& Co. He
dent
a
Baltimore
the
of
Security
Traders Association and was asso¬
ciated with Alex. Brown & Sons,
investment banking
Baltimore
iirm, for 14 years.
War
an
he
II
officer
was
commissioned
the
in
During World
U.
S.
as
the 2nd Marine Air Wing.
been
a
Major in the Marine Corps
Reserve.
,
a
very
mediate
far
as
the
•
come
areas
balance
of
some
Of
this
portfolio,
66% of the loans are under $25,000
and
93%
under
$100,000.
Practically
every
state
in the
Union is represented by the ob¬
ligations currently held by RFC.
In
response to
the direct re¬
quest of the Eisenhower Admin¬
istration to be of assistance, the
country's banking
an
government's loans. The plan
has been approved was out¬
lined by Mr. Cravens in Chicago
in a talk before 1,000 bankers at¬
tending the National Credit Con¬
ference of the American Bankers
as
ence
comes
up
It seems
though
as
new
as
The proceeds of the sale
provide immediate cash to
the government and assist in bal¬
(2)
March 22 there will mature $5.9 billion of tax
try
net
Feb.
erett
1
announced
income
1954 will be
maturity from cur¬
A-1954, due Feb. 15,
redeemed
rent
resources
Total
of the banks. Prin¬
Dec.
$8,625,076
were
Dividends of enterprise.
(5) The plan is well designed
declared during
to
protect the interests of the
of the banks on American
taxpayers and obtain
31, 1953 amounted to $1,387,compared
702,022
a
last
year
Dec.
31
with
earlier.
$1,221,-
Assets
included
as
invest¬
note
obligations of the banks will
have
been
reduced
to
126
of
$387,337,017
in
public
on
Dec.
31, 1953.
$302,500,-
Kerbs, Haney Admit
000.
The
comparative
45 Milk St.
CHICAGO 4
BOSTON 9
statements
ST 2-9490
HA 6-6463
the
of
Federal
profit
Home
consolidated
and
Loan
loss
of
Banks
every
-
possible dollar involved.
Regional
Committees
of
the
(6) An examination by
Appraisal
included
loans
in
the
plan
is
immediately and is ex¬
debt
obligations of the United pected to be completed by Feb.
20.
States and advances to member
Closing date of the sale has
ments
George J. Haney
comes
&
a
on
Federal
will select
Committees
recommend banks
and
RFC
the
to
District.
Reserve
Advisory
to
act
servicing
as
agents in local areas. Loans will
be
administered
pursuant to a
agreement,
servicing
which
will
provide for a small servicing fee.
Servicing
banks will hold the
collateral
and
notes
under such powers
are
to
necessary
will
and
act
of attorney as
properly
ad¬
minister the loans.
addition
to
Dreibelis,
Mr.
the Joint Committee of represen¬
sociation
serve
Bankers As¬
of American
tatives
and
Association
of
Re¬
City Bankers that has been
working
on
the program, is made
Fred F.
the Re¬
public
National
Bank,
Dallas,
Texas; George S. Moore, Execu¬
tive Vice-President, The National
City Bank of New York (alter¬
nate, C. Sterling Bunnell, VicePresident,
The
National
City
Bank of New York); R. A. Norris,
of
the following:
Florence, President of
up
National
President of the Lincoln
Bank, Washington, D. C.; Richard
A. Aishton, Vice-President, Con¬
tinental
Illinois
National
Bank
and Trust Company,
Frank L.
Chicago; and
King, President of Cali¬
fornia Bank, Los
Angeles.
The Committee is being
assisted
Feb. 4 be¬
partner in Kerbs, Haney
Co.,> 39 Broadway, New York
for the year ended Dec. 31, 1953, City, members of the New York
shows a net income of $10,706,- Stock Exchange.
Walter French,
Toluca,
Bank,
National
zens
Illinois; and Carroll A. Gunderson,
Deputy Manager, American
Bankers Association, Washington,
C.
D.
Mr. Chester A.
Rude, Chairman,
Executive
Security-
First
Los
Commitee,
National
Bank,
communities.
year.
assets
517,554,
of
with
during
compared
cipal and interest will be payable
The
at any Federal Reserve Bank or institutions of $951,555,018.
branch. Upon redemption of the banks had deposits of $558,679,101
and
total
capital of. $406,039,issue
outstanding
consolidated
231 So. La Salle St.
I
at
of
1953.
through Ev¬
Smith, fiscal agent, that the
$111,000,000 outstanding issue of
2%%
consolidated notes, series
1953,
preceding
$4,551,000
The Federal Home Loan Banks
own
The plan will substantially
reduce
the area
of government
financial
assistance
to
private
(4)
during
its deferred participation
certificate
An¬
geles, is Chairman of the Regional
will participate in the pro¬
Appraisal
Committee, which is
gram. This will help to restore a
made up of the following: Robert
normal relationship between this
G.
Emerson, Senior Vice-Presi¬
group of borrowers and the banks
dent,
First
National
Bank of
anticipation certifi¬
in their
on
WHitehall 3-1200
,
should not raise the debt limit, the matur¬
ing of tax anticipation issues will reduce the outstanding debt and
thus permit a long-term issue under the existing debt limit. On
Net Income Increased
ST., NEW YORK 5
the government over
ancing the budget.
(3) Hundreds of banks large
and small throughout the coun¬
the
15 BROAD
confer¬
Cravens
will
in the next few weeks however.
SECURITIES
& Co.
press
a
the next six years.
Even if Congress
892
servicing costs.
receive in¬
cover
Regional
by
be saved by
the Treasury
This obstacle will be overr
long-term bond.
on
adequate
an
Deputy Man¬
ager, American Bankers Associa¬
/
(1) It is estimated that administion, New York City; Barney J.
irative and servicing costs in the
Ghiglieri, President of the Citi¬
neighborhood of $15,000,000 will
market
many
In
held in Chicago, Mr.
pointed out:
offering of securities that will fall into
classification.
machinery has
help liquidate
that
sectors of the market
question
to
the
tory debt limit for a new long-term government bond.
INCORPORATED
mobilized
been
obliga¬
will be the most important group
provide
plan provides for a Cen¬
Advisory
Committee
ap¬
pointed by the bankers. This Cen¬
tral
Committee
will
appoint a
Regional Advisory Committee for
In
unpaid
$100,000,000.
MUNICIPAL
Attbrey G. Lanston
project
the
gate
cates, most of which will be turned in for taxes. This will reduce
the outstanding debt and create a margin within the present statu¬
and
which
bankers
of
discussing
been
proximately 3,500, with an aggre¬
expected and this security fits
short and intermediate term
a
was
years,
with RFC for several months.
the $275 billion statutory limit has stood in the way of
STATE
Committee
cial
has
specialists are looking for some long-term government bond
financing next month. The fact that the public debt is so close to
undertaking
six
next
York, and Chairman of the Spe¬
Long-Term Financing Rumored
when there will be
to
$15,000,000
of
Dreibelbis, Vice-President of the
Bankers Trust Company of New
r
P. S. TREASURE
the
gov¬
by Kenton R. Cravens, Ad¬
ministrator of the RFC, and J. P.
needs of commercial banks. Where loans
repayments, the 2V2 % refunding issue is
of in the current refunding, the
care
the longer term
►
savings
Association.
New
With
estimated
effect
will
made
sizable exchange by the deposit banks into the inter¬
2V2S with indications that the smaller commercial
outlying
to
to
on
each
joint announcement of this
significant financial arrangement,
this issue is concerned.
taken
$500,000
A
term
banks in the
of
loans
under.
and
Corporations as well as commercial banks are very much
interested in the 1%% certificates. On the other hand there has
Marine
He is
business
ing
tion.
Corps, serving in the Pacific with
now
major interest in RFC's outstand¬
February and March maturities.
was
cer¬
deter¬
The
the June maturities the Treasury has
1%% issue
the
tral
Kenton R. Cravens J. Paschal Dreibelbis
during
the needs of those institutions that must have a short-term
been
rate plus any
remaining after payment
of servicing costs.
•.
,
issues.
The one-year
H. Boggs
Wm.
Presi¬
former
on
not
However, it will be suffi¬
the
at
being given a fine reception because it allows the deposit banks
to get a very desirable income without going out into the longer,
associa ted
with
into the maturity
well
Boggs
interest
yet
to¬
banks
interest..
government will
terest
there will be an extension of maturities.
intermediate term 2xk% bond is an attractive issue and it fits
The
curities firm.
new
pooled
residue
intermediate term bond is taken in exchange for
New York se:
formerly
The
The loans involved number ap¬
the maturing obligations
has
margin
operation.
in which the
be
participating
of
rate
loans
the
the refunding of bonds until the
dentof the
will
and
ciently below the interest rate
seven-year-and-uine-month 2%% bond for the
June 2s, the June 2Vis, and the partially exempt June 2V4S the
Treasury is improving its maturity schedule because in the amount
Bo¬
the majority
outstanding business
Loans
mined.
By offering a
by
R..
The
in its offer to refund five
has
plan, participating
cash to the RFC
pay
interest in
tificates
maturing issues, ap¬
proximately $21 billion, in one operation too,k the money markets
by surprise because the largest bunching which had been actively
up
will
will obtain certificates of
Debt Extension Achieved
discussed and looked for was the
the
Under
banks
for their
gether
price movements.
over"
an¬
the
loans.
ernment
The Treasury
economic service."
of the RFC's
which
rities Dealers,
been
purchase
they have been the past,
unforeseen developments
year-end ones come
up for consideration.
To be sure, there will be certificates to be
refunded in the interim period but this is quite likely to be a "roll
nounced
will
banks
various
assuming, to be sure,
in the picture. This,
the largest refunding operation ever undertaken by the Treasury,
is expected to establish a pattern which should result in less dis¬
turbances in the money markets in the future.
The Treasury
whenever it goes into the financial markets, whether it be for a
straight refunding, a combination offer or in order to raise new
money, has an important influence upon the money markets and
it is sometimes a considerable period of time before equilibrium is
again restored. A course of action such as seems to be in operation
now by the Treasury should have very favorable implications as
far as the money markets are concerned. This in turn will be re¬
flected in the government security market which most likely will
the future as
in
cleaned
ation of Secu¬
conjunction with a vol¬
committee of bankers, a
plan has been formulated whereby
in
cooperate with the government
industry to perform a vital
and
untary
Offerings
By putting together several issues of government obligations
one refunding, the Treasury will not be in the market as often
However, by going out into
>
Associ¬
tional
the Recon¬
Corporation
by
Finance
Frequent Treasury
Less
in
revealed
is
that
sharply and with considerable rapidity.
Also the market was very thin on the upside. The backing and
filling which has come along with the refunding operation of the
Treasury is a very healthy development.
The combination offering of a one year 1%% certificate and
an intermediate term 2 V2 % bond to holders of the called or matur¬
ing obligations definitely fits into the current pattern of the money
markets. The reception given the new refunding issues has been
a very successful
one, with reports that the smaller commercial
banks have gone in for the middle term 21/2% in a very heavy way.
Insur¬
Co., and
recently
It
struction
prices had advanced very
Mutual
Life
Samuel
Vice-President of Bankers Trust Company
New York, reveals plan whereby banks will take over
outstanding loans under $500,000.
and J. P. Dreibelbis,
of
much in stride
the New Eng¬
land
1
CHIPPENDALE, JR.
By JOHN T.
RFC Administrator,
Joint announcement of Kenton R. Cravens,
Reporter on Governments
Our
Reynolds
& Co., 120 Broadway,
members of New
in Reynolds
Dispose of Its Small Business Loans
(
Hall, Jr. has been
general partnership
S.
admitted
RFC to
Jr. Now
Partner in
.
..
(584)
starting
been set for March 31.
Mr.
Cravens
stated
the
that
government's program could not
have been completed without the
full
cooperation of the nation's
bankers and their sincere desire
to contribute to a sound economy.
"This is a
just
a
big
Cravens.
the
"It
nation's
national plan
plan,"
eity
.
.
said
.
not
Mr.
joint effort by
banking system to
is
Massachusetts;
Boston,
Boston,
(alternate, John C. Garland, VicePresident, First National Bank of
Boston);
Vincent Yager,
VicePresident, Harris Trust and Sav¬
Bank,
ings
Chicago,
Brown,
cantile
(alternate,
Texas;
J.
Senior Vice-President,
D. Francis,
Mercantile
National Bank of Dallas);
C.
U.
Sammons,
S.
Illinois;
President, Mer¬
National
Bank,
Dallas,
Milton
National
Edward
President,
The
Bank, Portland,
Welborn, ViceBank of
Denver, Denver, Colorado; Wil¬
liam L. Day, President, The Penn¬
sylvania Company, Philadelphia,
Pennsylvania; (alternate, Harold
W.
Scott, Vice-President, Penn¬
sylvania Company for Banking
and Trusts,
Philadelphia, Penn¬
Oregon;
John
B.
President, First National
Jones,
sylvania);
Herman
Executive
Vice-President,
a
Jr.,
First
.
National Bank, Atlanta,
.
Georgia.
t\.*
1
Volume 179
Number 5296
.;
.
■
•
1
<>.t{
T.
V-vi • V"''V
V
I
The Commercial and Financial
Chronicle
(585)
Luse
who
ness
after
BRANCHES
OFFICERS, ETC.
The
Bankers
and
REVISED
CAPITALIZATIONS
board
Bank,
2
to
New
the
voted
the
$170,000,000
transfers
of
and
reserves
on
bank's
to
City
Great
Feb.
of
total
change.
cluding
announced
$10,000,000
from
un¬
capital
and
surplus
after
new
officers:
was
named
John
C.
Jan.
of
Lewis
ufacturers
York, it
Trust
been
Company,
announced
was
on
from
New
Feb. 3
14
offices
Queens.
.
in
He
the
Lewis
turers Trust
he
to
came
Co.
in
pointed
Lewis
in
later
year
Assistant
placed
he
was
Vice-P resident
in
office,
1950.
appointed
charge
360 East
of
the
149th
tive
#
have
been
Fifth
Avenue
Bank
&
office
Trust
to
of
if
common
by
2
*
18
Bank
election
of
James
Malcolm
Broad
An
stock
N.
in
in
of
on
the
19
it
it
Company,
Jan. 27
increased
was
of
New
22
stock
was
York,
the
under
13
jointly announced
on
the
Va.,
dent
T.
and
Investment
Hastings,
Jr.,
dent and Trust
Jan. 27
Meetings of the boards of direc¬
have
unanimously ap¬
proved the consolidation. The Of¬
fice of
the Comptroller of the
Currency has given preliminary
to
The
Trust
-
000
solidation,
increased its
Franklin
The
stock
resources
National
Bank
of
on
The
Dec.
3lj 1953,
.were
$196,000,000 and
those of the Great Neck Trust Co.
of Great Neck
were
Mr. James K:
.Vice-President
it
of
$17,000,000.
Ryan will become
in charge of the
and
capital stock
$2,200,000 by- a
dividend
*
effective
it
Jan.
18.
i
Jerome
F.
Kutak,
Reserve * Life
of
the
Executive
new
Insurance
of
Bank--of
Chicago,
Clarence A. Beutel, Sr.,
has
Ilk,
President,
announced.
Mr.
Kutak
succeeds
Mr.
Roland
P.
Did-
Manager,
South
Glenn
E.
strom,
the
Pro-Manager,
Pro-Manager,
it
new
for
the
Jan.
20.
em¬
an
Bank
Vegas, Nev.
a
director since
by
of
ernors
000,000.
If approved,
ditional
shares
D.
Claude
of
400,000 ad—
stock
will
be
issued and stockholders of record
the
at
close
of
business
Feb.
on
26, 1954 will be given the right to
purchase an additional share for
each three shares then
the
owned, at
subscription price of $40 per
share.
The
of
board
directors
intent
dicated
its
annual
dividend
to
has
in¬
establish
rate
of
$2
an
per
share
on
the 1,600,000 shares of
stobk to be' outstanding when the
Lake
»
financing is completed.
Mr.
Belgrano said that
i:
common
its board of directors to
increase its capital funds by $16,-
upon
completion of this plan, The First
National
Bank
of
will
Portland
from
a
$2,000,000 to have
capital of $20,000,000, surplus
stock dividend ef¬ of
$30,000,000 and undivided prof¬
it
The
Harrington,
*
stock
$2,500,000 by
fective
First
special meeting of its stockhold¬
on Feb. 23, 1954 for the pur¬
pose
of considering
a
proposal
K. Beck-
Soap
kane, Wash, increased its
Presidency,
The
ers
Hoquiam
The Old National Bank of Spo¬
capital
the intention of
National Bank of Portland to call
Dexter
Mrs. Emma D.
branch;
Edinger,
day, Har¬
its of approximately $10,00,000. Its
it
of
was
the
the
$
Las
deposits
Vegas,
admitted to
Board
Federal
of
Las
mem¬
Gov¬
Reserve
will
mately
assets
be
its
$720,000,000,
approximately
loans
$360,000,000
in
excess
approxi¬
its
and
of
total
$790,000,000,
making it the largest bank in the
Pacific Northwest.
elected President.
D.
Kercheval,
having
employee
an
LUDMANworlds
head
as
Department," David B'S
MoTrey,
since
1931,
and
a
ary,
1944/was elected Vice-Presi¬
manufacturer of
Vice-President since Janu¬
*
1;4
it
it
awning
.
windows and jalousies
*
it-
largest
James
Et;_E[Qllingsworth, and
Robert E. McConnell were elected
directors
Bank
in
annual
Jan.
of
the
Palm
First
National
Beach, Fla. at the
stockholders meeting held
26.
•
V '
The'First
Assistant
i
National
Cashier
Bank
announces
Crow, Jr.
in
their
of'
the
as
Bond
-
it
.
'.
it
PRODUCTS:-
*Makers of world famous
Department.
it
Patented Auto-Lok
Awning
Windows,,aluminum
Effective Jan. 20, The American
National Bank of Austin, Texas,
or
-
wood- Industrial,
commercial, residential
capital stock
Patented Auto-Lok
from $1,000,000 to $1,500,000.
♦
Screens and Storm Sash
_
Windo-Tite Jalousies
Jalousie Doors
membership by the Board of Gov¬
of
the
Federal
Jalousie Screens
Reserve
and Storm Sash
System.
Bar-Lok Storm Shutters
Fabricators, Erectors,
The United States National Bank
of
--
Window Hardware
k'
"Peoples State Bank of Kountze/
Kountze, Texas was admitted to
Go., .of
director of the South East
National
of:
Broad
.
is
Guaranty
Hammond, Ind., has been elected
a
&
member of
a
of the.Trust
ernors
Vice-President
Jan. 19, announced the
Assistant
System.
was
Ohio
conrrmorr
directors
branch;
Mr. v
Schneider, Pro-Manager,
Boatmen's
same
increased its common
Bank
the
Seattle
January, 1947, did not
to be placed in
Birmingham, Ala.
Dayton,
the
It
made by
Manager, First
branch; Mr. Virgil A. Gam-
March, 1937, and
'
it-
it
the
Fed¬
Assistant
bership
Vice-Presi¬
National
Company
have
of about $213,000,completion of the con¬
r
Third
of
own
approximately
capital stock of that
of the
...
Officer, W.
-
'
from $2,000,000 to
resources
upon
$2,500,000.
on
dent and Trust Officer.
City National Bank & Trust
it
approval subject to the approval
will
as
Company of Columbus, Ohio, by a
stock dividend, increased its com*mon capital stock from
$2,000,000
tors of both banks have been held
institution
the
election of James S.
The
tive institutions.!
total
it
by
the
*
meeting
ployee since September, 1915, for¬
mer Auditor, Vice-President since
Officer, E. H. Ney-
si:
The
To succeed Mr. Kercheval
hard.
by James K. Ryan and Arthur T.
of their respec¬
new
and
*
following
Trust Off iter; was elected Se-"
nior Vice-President of the bank.
Jan.
on
officers
of
System.
ington,
dams,
name
F.
Royal
Trust Officer of Trust Department
R.
MacKethan; Vice-Presi¬
Roth, Presidents
The
of
meeting
Transamerica Corporation and its1
subsidiaries
asked to4 be relieved of his duties
Commerce,
announced
promotions
on
ditions will become the 23rd larg¬
bank in the United
States.
as
R. H. Moore and I. T. Van ,Patten, Jr.; Vice-President and Senior
and
by the stockholders.
effective Jan..
of
membership
Reserve
election
a
the
Portland
a
Governors
elected Vice-Chairman of
was
1947,
*
Bank
his
Harry
-
Square,
of the agreement of consolidation
increased
the Board.
to
Banking Department—E. D. Denby, C. M. Etheridge (and Cashier),
—E.
name
common
follows: Senior Vice-Presidents of
charter of The Franklin National,
both
allow
'
if
Franklin
of
give
of
bank.
*
to
of
National Bank
Sweet
est
28,
Savings & Commer¬
:!:
Jolley, who has been Presi¬
dent since
American
Security and
Company, Washington, D. C.
Norfolk,
an¬
A proposed consolidation of the
of
ef¬
the
#
•'!=
will
banking offices in Oregon. Mr.
Belgrano stated that, based upon
deposit figures as of Dec. 31, 1953,
67%
admitted
Hill
meeting
First
additions
67
several
branch.
the
old T
common,.capital
$3,400,000 to,.$3,740,000
National
Great Neck Trust Co., Great Neck,
New York and The Franklin Na¬
Bank
stock
was
elected
was
These
duration.
Board
eral
board.
At
its
sis
of
arjd Robert A. Niemann, Branch; and Mrs. Jaunita
board, held
divi¬
$200,000
Jan.
on
cial Bank, Los Angeles, Calif, was
*
of
Springfield,
Home, and Yamhill.
th^ First National with these ad¬
.
sJs
dividend
Shoe
2
if
Cashier,
Coatesville, Pa.
it
increased
Trust
a
by Stuart A.
Lyman, President of the bank.
it
re-elected
nomination
the
died
*
com¬
$1,200,000 by
annual
Silver ton,
*
illness
Occidental
National Bank of St. Louis, Mo. on
Jan. 12, all of the directors were
it
20
from
it
A
trustee of
a
it
York,
Feb.
on
stock
a
the
stockholders
$400,000.
The Franklin Savings Bank of the
nounced
Jan.
of Chester Valley,
Assistant
Brake
dividend.
capital stock of The National Bank
of
elected
was
stock
and
it
director of American
months
*
to
Eugene, Forest Grove, Lebanon,
Monroe, Ontario, Philomath, Port¬
land,
Prineville,
Scio,
Seaside,
E.
Vice-Presi¬
Hahn, 52, President
an
of Port¬
Oregon cities: Carlton, Corvallis,
Cottage
Grove,
Eugene,
West
Her¬
Max
are:
Calif,
Bank
effective
following;
of
Vice-President.
*
Oregon,
Feb.
8,
1954. The 18 offices of these banks
will become branches of the First
National Bank in the
on
Calkins,
that
Assistant
State of Oregon, the sale
banking business of 15 Ore¬
land,
contract
lem,
Bank
made
was
by
appointments
to
the
The First National
Fran¬
Mr. Joshua Green, Jr., President
of Peoples National Bank of Wash¬
capital
Ark.,
$600,000
At
capital
National
it
stock from
.
Rock,
from
$400,000* to
common
First
Jan.
Effective
McQuilkin
Roe,
*
San
A.
is
The
Drake
from
it
❖
/ •
from
the
Vice-President,
George
and
.
*
Provident's
*
Greensburg, Pa.
fective
Kempton Dunn, President and
and
is
it
increase
$600,000
Auditor.
was
Little
Feb. 2 at
on
promotion
B.
following
dividend.
corqmon
Allard
it
The Commercial National Bank of
the
William A. Regan, Assistant Treas¬
New
The
the
of
announced
bert
Angeles,
increased
*
of
Street.
branch
new
stock
a
*
office
by
capital stock effective Jan. 19
mon
by
28
Bank
were
Herman F.
^
Winona, Minn, increased its
to
Jan.
effec¬
The Merchants National Bank of
in¬
$300,000
branch
*
at
A.
becomes Assistant
tional
New
Shaw, Assistant Treasurer,
Manager and Carl Flood, an
Assistant Treasurer, is Assistant
Manager.
Angus, as ViceGeorge A. Onderdonk
Presidents.
City
of
was
Calif,
Comptroller of the
gon banks with 18 offices substan¬
office.
$150,000 to $300,000 effective Jan.
19 by a stock dividend.
Bank
National
of
an¬
tially owned by Transamerica to
official
of Union Bank & Trust Co. of Los
-v
i<
to
head office; and Frank D.
Magers,
Assistant Manager, Oakland main
*
was
of
staff
Corporation,
in Washington, D. C.
Superintendent of Banks
the
of the
officer
department;' A.
Northrup George, John R: Healy
Searing, Assistant
Cashiers, head office; Francis E.
Barton, Assistant Trust Officer,
in¬
paign,
John
Commerce,
H.
$600,000
*
it
the
Chairman
President
Currency
positions with the Anglo Califor¬
capital stock
di¬
111.
of
Jr.,
and
nounced, subject to the final ap¬
and
one
Belgrano,
Board
proval of the
Dignan
and W. Edward
First
The commpa capital stock of
The First National Bank in Cham¬
dend.
of
to
tt)i
C.
banking office to be opened
in the Philadelphia area.
*
New York, announced
urer,
other
Jersey
from
Walter E. Kolb, President of the
Industrial
$400,000
the
Jolietr 111.
the
stock dividend effec¬
a
advi¬
by
of
common
at
*
of
N.
the
Transamerica
appointment of six other
members
dent,
sixth
Jackson, Chairman.
#
and
to
the
Teagarden,
it
dividend
Bank
its
D.
stockholders
promotion
The
capital
common
F.
of
Chairman of the Board.
effective Jan.
it
stock
a
capital stock of the
New
North
The
an
Chemical
Feb.
on
the
*
it
National
modern
3701
Co., New York, it
announced
common
tive Jan. 20.
re-elected.
were
adelphia, Pa. opened
A
and
Street
dividend
increased
By
Provident Trust Company of Phil¬
Street, the
29th
stock
National
pay¬
Frank
All
it
Melrose
elected
in
$600,000:
elected
and
*
it
Dr.
was
directors.
Jan.
A
%
board of the
Baxter
increased
authorized,
was
Bank
George
si:
The
nia
$1,600,000 to
stock dividend ef¬
a
The
*
stock of Oak Park National Bank,
Oak Park, 111. from $400,000 to
$600,000.
George E. Allen and David H.
was
22
is
*
sory
A
it
1954.
of
creased
Bronx.
Marx
10,
Peoples
ap¬
November,
effective
from
Brunswick,
Officer-in-Charge of the
opened
12 years.
fective Jan. 21.
dend of 25%
The
1938
was
$2,000,000 by
annual
$
Jackson Heights office when
new
it
Mr.
it
men
South
and
F. Roberts and Emmett
J.
to the board of
directors.
from
:j:
was
As¬
Both
with
National
stock
creased
rectors
Harlem office of the bank and in
1941
was
advanced to Assistant
Secretary.
than
more
Central
meeting of the
Company, Englewood, New Jersey, a stock divi¬
board
Manufac¬
In
the
Feb.
succeed
1931.
His
$200,000 to $300,000.
McCormack
appointed Manager of the
was
The
common capital stock
Peoples National Bank of
Vermont
Hershner
their annual
meeting elected Neil
and
*
George M. Bragalini who recently
was appointed
City Treasurer by
Mayor Wagner.
Mr.
associated
*
dividend
D.
cisco,
Jan.
on
dent, Neil E. Roberts; Vice-Presi¬
dents: Raymond C.
Erickson, John
Kilgore
elected
was
*
able March 1, 1954 to
stockholders
of record at the close of business
Borough
will
been
East for
Palisades Trust
ap¬
by Horace C. Flanigan, President.
In his new capacity Mr. Lewis will
be
Supervising • Officer of the
Banks'
Wahala
-
18, the
The
At
has
have
.
SJS
..
if
stock
a
Barre,
Vice-President of Man¬
a
bank
•
his home in West
Islip.
was 84.
it
pointed
director
a
at
By
if
5-5
W.
two
Vice-President
Chicago, 111. increased its
serves.
of
*
*
000 from the close of the
year on
account
of
the
transfer
of
re¬
it
Ernest
the
also
of
capital
age
$10,000,-
up
consolidated
the
capital funds, in¬
undivided
profits,
will
$403,000,000,
appointment
Babylon, New York, died
31
$350,000,000
and
of
Bank
Albert D. Haff, Chairman of the
Board of Directors of the Bank of
Total
be
now
the
office
*
$200,000,000
$20,000,000 from
Combined
Neck
surplus
divided profits.
will
directors
National
sistant Vice-President.
National
York,
increase
from
by
of
of
East
Joseph
Directors
ill¬
.
Schweigert.
South
NEW
of
1935.
CONSOLIDATIONS
NEW
because
serving the bank as
from its organization in
director
News' About Banks '
retired
21
Denver,
Colo,
Warehousing and Sale
announced
of Structural Steel
changes and additions to its staff
effective
Jan;
12, ":as
LUDMABox 4541 Dept. CFC-9,
follows:
Chairman of the Board, Albert N.
Williams, Sr.; President, Roger D.
Knight, Jr.; Executive Vice-Presi¬
New York
•
Washington, 0. C.
Miami, Floritfcj
Dis,,it","Kl th'ou«hou' «"> «™,M
Sales Offices:—
•
St. Louis
•
San Francisco
•
Boston
•
Chicago
•
Atlanta
•
Houston
•
Miami
-
The Commercial and Financial Chronicle
22
..
.
Thursday, February
4, 1954
(586)
ritory.
rience
of
highway system; and by facilitating the adjustments
farming to current conditions of demand and technology.
Thus, gross should expe¬
less-than-average dip.
a
addition, there are expected to
be continuing
cumulative bene¬
fits from the property improve¬
In
Railroad Securities
ment
program,
terminal
the
there
that
The plans of the Administration in this matter
detail to permit definite
appraisal.
as
to the
as
•
reduction
have
We See It
As
pro¬
are
participate
an
employment and
high earnings.
Southern
Railway has
come
"It is
a
way
now
turities
had
reduced
sult
to
of
$78,212,000.
As
call
a
;
re¬
early
additional $11,552,000
last year an
the company con¬
tinued
to
buy
in bonds when
available at reasonable prices. As
a
result of these operations it is
the
that
had
total
the
by
end
to
and
In
If these
million, with additional li¬
quid funds held by wholly owned
$100
not
its
tered
only
point
in
fi¬
of
has
Southern
that
bols¬
soon come
the postwar
position in
pay
Physical plant has also
substantially. The
property has been fully dieselized.
ment
than it
been
Continued
proved service and greater
a
floor
oper¬
efficiency,
has been the
comprehensive yard moderniza¬
tion program.
This, also, is still
going forward.
Reflecting these property im¬
provements and the acquisition of
a large amount of new equipment,
the transportation ratio last year
down
sented
to
30.7%.
points
from a
compared
with
close
This
repre¬
cut of approximately two
a
39%
to
earlier
and
average
of
year
an
in
the
immediate
Similarly, the
margin,
which
postwar years.
profit
tax
over
*
pre¬
ran
"Government must
*
:jc
$
"The arsenal of weapons
24.8%
for last
tion may
accomplished is obvious when it is
considered that each point in these
ratios is equivalent to about $1.00
share
a
the
on
income
A
final favorable aspect
Railway picture
the situa¬
"There
is
dynamic growth characteristics of
the
service
area.
The lines
type of mixture of good and bad
Steel ingot
a
cover
number of years.
Reflecting the
expansion in the traffic potential
of the
area as
ment
in
well
the improve¬
as
operating
efficiency,
Southern's
pushed
earnings
ahead to a
last
new
year
record
high.
Per share results came to
$11.62 compared with $9.56 a share
realized
earnings
near
in
1952.
Obviously
stock appear justified in
looking forward to an increase in
the regular dividend rate in the
not too distant future.
analysts
-
are
.
we
should take
confident
In
the
month just
of
by
of
ended—January—ingot output totaled ap¬
proximately 7,800,000 net tons. At that rate, a year's output would
be 94,000,000 tons. January was not one of the best months either.
It was lower than the preceding one; which also was slow in
to build a stronger economy.
comparison with the pace of earlier 1953,
—
the December output
being 7,937,000 tons. In fact, a monthly figure as low as 7,800,000
tons has not been recorded since the strike-ridden month of July,
1952, this trade journal adds.
Nearly all
of January saw a slowly
declining rate of ingot
production, the week ended Jan. 31 being the third consecutive
one in which the pace eased off.
The national rate that week was
governmentally insured loans and mortgages; by estab¬
lishing a secondary home mortgage market; and making
improvements in the planning of public works programs.
73% of capacity, or a
"At the
same
time
we
expansive
power
—
by revis-
ing the tax laws so as to increase incentives and to remove
certain
ness;
impediments to enterprise, especially of small busi¬
by improving credit facilities for home building,
modernization and urban
renewal; by strengthening the
week,
industry has more time on its hands it is
Allegheny Ludlum Steel Corp. of Pittsburgh,
is bringing
out new products and exploring new markets to
strengthen its market position, while Youngstown Sheet & Tube
Co. is starting to rebuild and enlarge the blooming mill at its.
Now that the steel
not sitting on
should take action to stimulate
of individual enterprise
1-point reduction from the preceding
"Steel" continues.
■
•"
"Steel,"
magazine of metalworking, but if the present rate
operations can be maintained, 1954 output will be exceeded
only three other years. They are the war-stimulated years
1950, 1951 and 1953.
should take bold steps to protect
stability
production continues to ebb slightly, says
tionary authority to the Executive to alter, within limits
and appropriate to changing circumstances, the terms of
the
to
common
Many
two classes of actions that we
if
stay anywhere
levels holders of the
are
these
are
mote economic
the. southeastern section
01 the
country and this territory
has been expanding industrially
consistently and sharply for quite
ally
Scheduled to Show Modest Decline
the weekly
and pro¬
by modernizing unemployment
insurance; by broadening the base and benefits of old-age
and survivors insurance; by permitting a longer 'carry¬
back' of losses for tax purposes; by granting broad discre¬
"First
liter¬
December, 1952.
This Week
same
within the current year
the
rose to a new high
slowed sharply compared
Steel Output
that
of the
turned out 458,612 cars and
cars
respect to consumer credit, the
increase
000 addition in
taxes.
Southern
during model
Federal Reserve Board
in December, but the rate
with a year earlier. Con¬
sumer
short-term debt climbed $644,000,000 during the month.
This brought the total outstanding to $28,800,000,000—more than
$3,000,000,000 greater than at the close of 1952. The December
increase, however, was only about half as large as the $1,200,000,of
displayed in the general discussions of policy is
plainly in evidence in the recommendations for immediate
action on the part of Congress.
Here again we quote:
as
January, auto manufacturers
With
of
flexibility in ad¬
weapons as
except
operated,
them.
require."
Somewhat the
common
Federal
before
stock,
road's
all of these
has
reported that it
budget; agricultural supports; modifi¬
and public works.
We shall
not hesitate to use any or
year.
magnitude of what has been
Ford
two assembly plants on double shifts and 13 plants
schedules, plus Saturday work for
shift 9 V2 hour overtime
with the market and still use less overtime."
In
the debt management policies of the
cation of the tax structure;
on
June,
out of its
out of 15
98,666 trucks, "Ward's" states. This compares with 465,744
and 111,531 trucks in January, 1953, the same source notes.
at the disposal of Govern¬
mortgages carrying Federal insurance;
preliminary figures is
at
up
*
Treasury; authority of the President to vary the terms
ministration of the
The
to
maintaining economic stability is formidable. It
includes
credit controls administered by the Federal
System;
3
page
Now, the report states, Ford hints, this is over. Said a spokes¬
man: "A runaway market just isn't in the picture; so we can keep
ment for
Reserve
one
most of
maintain
increased to 23.3% in 1952 and
indicated
on
help main¬
employment and purchasing power as well as
reasonably stable prices."
tain
last
changeover,
*
its vast power to
use
around 15% in 1947 and 1948, had
the basis of
Since
aster, Government must concern
ating
was
in
the pit of personal dis¬
itself with the health,
security and welfare of the individual citizen."
help build
from
key competitor, Chevrolet. Ford worked two
assembly plants last Saturday, compared with four
the previous week.
15
"To
meas¬
The State of Trade and Industry
pushed strongly, and is still
going forward. Perhaps the most
important part of the program,
both from the standpoint of im¬
humanitarian
tent of its
*
*
as
of obviously weak arguments
into the discussion?
require a more important role for Govern¬
played in earlier and quieter times."
*
merits
use
of uneasiness when
policy, fiscal manipulation and the like is brought
credit
years.
Mechanization of maintenance has
own
And who is able to escape a pang
general statements stood by themselves or if
of the world
their
on
rather than to make
they somehow tend to promote economic stability or
growth?
Still more elaborate subsidization of
housing is obviously of very seriously doubtful economic
validity in any event; it can scarcely be justified as a
means of
promoting long-term economic progress.
"The demands of modern life and the unsettled status
been improved
regret the
economic
and thus to be able
higher wages and provide better work¬
to such sentences as these:
but
that
they were not accompanied by other statements which all >
too frequently seem to compromise their excellence, few
would take strong exceptions.
But reading further we
subsidiaries.
is
willing to
cannot
debated
ures
ing conditions."
comparison, recent balance sheets
It
be
is therefore to create an
to make new jobs,
acquire new tools of production, to improve or scrap
design new products and develop new mar¬
show cash and equivalent of over
nances
.
kets, increase efficiency all around
been
1953.
of
.
.
the old ones,
reduced to somewhat less than $60
million
our economy
in
presentation of various
and means of promoting eco¬
nomic stability, economic growth and economic prosperity.
Why not let "social security" plans and changes in them
families and communities. The American
people are highly skilled, imaginative, enterprising and
forward looking.
The best service that the Government
render to
develop in the future as we have been doing
past.
We
environment in which men are eager
rest of the year
believed
More and better roads
"welfare" programs as ways
terest of their
can
the
throughout
and
retired
was
a
,
of individuals,
been
tenders
for
experience of
depends fundamentally on the enterprise of /Trillions.
acting in their own interests and in the in-
omy
of
end
of the
As
maturities
these
1952
ma¬
longer loom as a seri¬
no
problem.
ous
bond
1956
formidable
once
well to recall the accumulated
] generations which has taught us that no government can of
>
itself create real and lasting prosperity.
A thriving econ¬
in recent years. It is
generally conceded that the
-long
question that we have very serious
There is every reason to approve reasonable pro¬
grams for achieving such an end. But there are various
ways of attacking the problem and various degrees of effi¬
ciency in solving it.. We-hope we-are- nob mistaken in be¬
lieving that the present Administration will prove itself
more interested in getting the highway facilities we need
than in merely creating work.
the
greater extent in the current
a
no
essential at the earliest feasible date if we are to con¬
tinue to
expanding economy with maximum
without price inflation."
of
gressed to the point where stock¬
holders may expect to
be
can
highway problems on our hands.
improvements,
property
debt
'
There
confidence of the
management and the fact that fi¬
nances,
yet known in sufficient
not
Continued from first page
the favorable impli¬
important
good and
system.
are
a
cations
Some of them may be partly
wholly good.
as
partly bad. Others may be either good or bad depending
upon precisely what is done and how it is done.
Heaven
knows our tax system needs a most careful and thorough
overhauling, but, of course, there are helpful and there
are harmful changes which might be made in the existing
this year.
ing industrial expansion in its ter¬
share. In the opinion of
railroad
analysts generally, the
amount involved is not nearly so
to
further
the full year 1954, there are an¬
general economy. It is pointed out alysts who feel that on the basis
that the impact of the decline in of the above considerations it is
business will be cushioned in the not overly optimistic to look for
case of Southern by the continu¬
perhaps as much as $10.00 a share
In addition to the $0.62 V2
quarterly that has been paid regu¬
larly .since the stock was split
two-for-one
last
year,
directors
declared
an
extra
dividend
of
way.
and
a
the
of
last
$1.00
of Southern will be
well maintained in the face
current recession in our
very
agreeable dividend surprise
week to Southern Rail¬
1954
fell
be
gain
that earnings
the first
The honor of affording
should
with respect to operating
efficiency. While it is much too
early to make any accurate esti¬
mate of what earnings may be for
{Southern Railway
and Bad
A Mixture of Good
Certainly no one is likely to condemn such programs
as these as wholly bad, and few, we believe, who under¬
stand such matters would for a moment endorse them all
and particularly
modernization, so
v
'
them.
this trade weekly.
is not only spur¬
ring mills to absorb some of the charges for delivering steel to
customers but it is bringing pressure to reduce or waive some
of the extras. Base prices are remaining firm, however, and as
Brier Hill Works,
<
:
Youngstown,. declares
The reduced demand
for steel, it concludes,
Volume 179
a
Number 5296
The Commercial and Financial Chronicle
...
result, "Steel's" price composite
finished steel is unchanged
on
tributed
at $113.91 a net ton.
The
American
Iron
75.6% (actual)
The industry's
based
and
Steel
Institute
For the
duction
week
a
that
announced
of
ingot production rate for weeks in 1954, is
like week
1,798,000 tons. A year
ago
of Jan.
as
month ago the rate
a
held
the actual weekly production
Cocoa
Earlier
weakness
abroad
below
110,789
cars or
freight for the week ended Jan. 23, 1954,
0.4% below the preceding week, accord¬
Lamb values were up
617,226 cars,
decrease
a
or
corresponding 1953 week, and a decrease
15.2% below the corresponding 1952 week.
of
the
Output Registered
In
Latest
hogs and grains.
made
and
was
Jan.
ended
week
15
were
reported, at
decline
in
32,200 bales, against 35,100 in November, and 36,400 in
was
date
The daily average use of cotton showed a sea¬
December. The average, daily rate last month
De¬
cember 1952.
the agency reported, there
country, as against 24,276 in
this
6,085,000 bales.
sonal
the
in
bales, bringing total entries for the season to that
282,700
to
117,654.
week,
in
the
previous
and
1,400
the
trucks
last
Canadian
plants
week, against
preceding week and 7,629
turned
7,625
cars
and
cars
out
and
1,523
8,720
cars
Wednesday of last week as during the preceding week, interest
was not quite as high as in the early part of January when at¬
tractive clearance sales stirred wide interest.
Merchants were
trucks
1,435
trucks
the
in
comparable 1953 week.
encouraged
generally
sales"
the favorable
by
response
"white
to the
household textiles.
of
Business Failures Continue Advance
retailers
While
Commercial
industrial failures rose to 233 in the week
preceding week, Dun & Bradstreet,
and
At the highest level since April, 1942, casualties were
up considerably from the 162 and 164 which occurred in the comparable weeks of 1953 and 1952. However, mortality remained
with
liabilities
last week
of
$5,000
and exceeded
the
or
126
>
increased
more
this size
a
varied
195
to
year
of
excess
the
in
$100,000,
as
compared
with
13
South
increases
lifted
struction
to
98 from
the
from
30
manufacturing toll to 56 from 40 and con¬
24.
In contrast, retail mortality dipped 'to
to
to
be from 3% below to 1%
and Midwest —1 to —5; East 0 to —4;
-f3; Northwest —3 to +1; Southwest and Pacific
-f 4.
interest in apparel faltered somewhat
buying of Winter wear began to decline. While
spirited
casual
a
year
scored by retailers of children's wear.
clothing remained high.
were
total
spent for apparel did not match
The call
^
as during the preced¬
remaining slightly higher
year-ago.
Aggressive promotions of beef, particularly by
supermarkets, held the consumption level above the year-ago
food
ing week with total sales of food stores
than
a
level.
the
in
held
West North Central Regions,
in the Pacific States which had a total of 54 as against
preceding week.
areas
a
slight dip from
was
The volume of wholesale sales in
what
Following the downward movement of
& Bradstreet wholesale food
to stand
at $7.02
figure compares with $6.22 a
The
of 31
index
foods in
year ago, or an
represents the
general
use
sum
total
of
from the
The latest
price
per
the
pound
stores
year
a
Federal Reserve
previous week, Jan.
Jan.
23,
ago.
Buyers continued to
than in the previous year
)
Change in Latest Week
general commodity price
the level of the preceding week. In
16, 1954, a decline of 8% was
in 1953.
level held in
W
a
For the year 1953, de¬
1954, no change was reported.
fairly
Retail
of the
narrow
,
...
ago.
in
a
week previous and 279.32
..Leading grain
in wheat
markets
was
were
more
markets,
generally
active
a
a
in
volume
York
New
stimulated
supported at-90%
like period one year ago by about
in
corn
was
by
at-
5%, according to trade
elected a limited partner,
prominently identified:
securities business for
the
He is a former part¬
& Co., New
of Glore, Forgan
York, and is
of several
presently
Director
a
corporations, including:
Spencer Chemical Company,.
and the Byron Jack- %»
Kansas City,
Angeles. Rea
Company of Los
Eaton,
who has discontinued ac¬
tive
participation in the firm andL
was
elected
the
limited partner wax
a
the San Marino,.
Manager of
the
Witter for
Dean
of
office
past 10 years.
f
Wm. Fiedler Joins
Hemphill, Noyes & Co.
Fiedler has joinedL
A.
Noyes
&
Street,
the
City, members of
New York Stock
Exchange, it wa9*
29.
Jan.
announced
was
Broad
15
Co.,
York
New
of Hemphill,.
firm
securities
the
Mr.
Fiedlev
and Conw
with H. M. Byllesby
pany,
Incorporated for 20 years;,
the
spent
Sales
last
Manager of
12 years a*
the New York
office.
index department
SANTA
9%;from the like period of last
Shearson,
In the preceding week, Jan. 16/1954, a
For the year
•
<
1953,
•the11952 period.
a
decrease of 1% was. .registered from
:
'
.
•
■
Shearson, Hammill
weekly period ended Jan.
New York City for the
decline of 14% (re¬
vised) was reported from that of the similar week of 1953, while
for the four weeks ended Jan. 23, 1954, nb change was reported.
year.
reduction of red wheat stocks at
of parity.. ?The advance
2% above the cor¬
last week exceeded that
According to the Federal Reserve Board's
Chicago and Kansas City, and the belief wheat 'will continue to
be
trade
store sales in
year
stronger last week.
with buying
Chicago, before itsr
with Dean Witter
Co.,
merger
Malcolm Smith, of Los Aih-
been
has
with
and
23, 1954, registered an increase of
firmness in the cash
*
the like date
......
Trading
.•
on
& Co.
observers.
compiled by Dun & Bradstreet, Inc., registered 275.83 on Jan. 26,
against 275.11
reported
For the four weeks ended
responding period of 1952.
t
The daily wholesale commodity price index
the past week.
recent
William
a
partment store sales registered an increase of
Wholesale Commodity Price Index Reflects Little
The
&
,
I
range
formerly President of Harris*
was
Hall
continued to be some¬
country-wide basis as taken
Board's index, for the week ended Jan.
sales on
from that of the similar week
and its chief function is to show the
general trend of food prices at the wholesale level.
high level of
23, 1954, advanced 1% above
increase of 12.9%.
the
the
Department
price index resumed its upward trend
Jan. 26, against $6.96 on Jan. 19.
on
below
the week edged up slightly
of the preceding week but
place orders on a shorter-term basis
and some sought price concessions.
week ago, the Dun
a
partner,,
limited
Hall,
Edward
demand for tea and various coffee
reflected in the rising
from the level
Wholesale Food Price Index Resumes Upward Course
!
office.
Hills
substitutes.
Central States where failures
steady and the West South Central where
prevailed.
1953
and
More businesses failed than last year
except the East South
prices developed in some areas,
Witter
Dean
years and will continue to serve
as resident partner of the Beverly
Calif,
Consumer resistance to coffee
Francisco-
and later
transferred to the Portland office.
Mr. Vandenhoff has been with
Dean Witter & Co. for the past lf>
of
office
son
ago.,
busi'nes*.
San
in
1935
in
career
his
started
partner,
the
the high level of
moderately lower in the East and
in all
Manager of the*Dean Witter
elected a general
& Co. who was
many years.
The
failures increased during the week in five
including the South Atlantic States where
they jumped to 40 from 12, the Middle Atlantic States, up to 76
from 66, and New England, up to
18 from 8. Casualties were
65
Fabr
of
office
Portland
ner
for
nine regions,
as
Co., later known as Pierce
stirred
groups
Geographically,
well
Before the for¬
mation of Dean Witter & Co. be
was associated with Cyrus Pierce;
early
Housewives bought about as much
as
Francisco-
San
of
Stock Exchange.
geles,
recent
of apparel
service establishments.
the
was
promotions of Spring styles in the South and Southwest
mild interest, there were increasing signs of a betweenseason lull.
The most consistent year-to-year gains in the sales
service to 17 from 21. All industry
had heavier casualties than last year; the most
notable rises from the 1953 level occurred among wholesalers and
of
week
New England
last week as the
104 and commercial
and trade
0
The
Manufacturing, wholesaling and construction accounted for
week's upturn in casualties, with the sharpest rise centered
wholesaling where failures climbed to 32 from 19.
Milder
the
corresponding level of a year ago. Regional estimates
the comparable 1953 levels by the following per¬
—1
Coast
last week.
in
trade
retail
from
centages:
ago.
Meanwhile, little changes appeared among small casualties with
liabilities under $5,000.
Sixteen concerns failed with liabilities
in
of
volume
estimated by Dun & Bradstreet, Inc., to
above the
of
the sales
surpass
1
dollar
total
The
39% below the prewar level of 385 in 1939.
171
to
gains.
Inc., states.
Failures
unable
generally
were
figures of a year ago, most food stores chalked up year-to-year
ended Jan. 28 from 208 in the
from
of the Board
Chairman
Governors
of
Miller was
Mr.
William Boone,
shoppers spent about as much in the period ended on
While
estimated
first
the
j
become a.
Dean Witter & Co. has
partner.
r
& Co.
Trade Volume Remains Static the Past Week
week
Miller,,
partners ofi.'
Willard
G.
original
the
sMc*
time the firm an-
same
that
of
one
&
trucks
24,211
were
23,483 in the like 1953 week.
"Ward's"
in
was
moderate. Inquiries continued
fairly active.
limited
entries
Loan
industry turned out an estimated 112,560 cars last week,
compared with 113,532 (revised) in the previous week.
A year
the weekly production
mill buying
and
numerous
:
At the
nounced
was
Marino have
limited partner¬
ship.
staple into the Government loan, and the ex¬
in spot markets
Trading
output for the latest week declined below that
previous week, according to "Ward's Automotive Reports."
Last
William B
Boone, Portland, and George &
Vandenhoff, Beverly Hills, have*
been admitted to
general part¬
nership. Edward B. Hall, Chicago,
Malcolm Smith, Los Angeles and
Rea L. Eaton of San
of the
Milfer-
Willard
G.
Vandenhoff
E.
G.
effective Feb. 1, 1954,
been admitted to
pectation of tightness in free supplies later in the season.
The
ago
>f41
trend of the
past few weeks. Supporting factors included the continued heavy
movement
Week
-
■i
§r.
erately lower.
Automobile
of the
reached the highest January levels since 1948.
slightly for the week; steers finished mod¬
which
hogs
Falling Off
a
by
Spot cotton prices continued the mildly upward
80,289
of
influenced
possibility of increased consumer re¬
the firmer tone
Light receipts were responsible for the rise
And Year Ago
in
trade selling,
general
the
and
in
cars,
U. S. Auto
reflected
Lard scored modest advances, aided by
sistance.
ing to the Association of American Railroads.
11.5%
irregular and finished sharply lower although the
a firmer basis as the result of limited offerings.
was
weakness
Car Loadings Continue to Drop Below Previous Week
Loadings totaled
^Jj
EH;
HBeHF
to prevailing
of consumer resistance
market closed on
the like week in 1952.
decreased 2,645 cars, or
©■11
less active and some trade selling devel¬
was
result of talk
the
as
ilr
prices.
figure represents a decrease of 121,000,000 kwh.
below the preceding week, but an increase of 705,000,000 kwh.,
or 8.6%
over the comparable
1953 week and 1,283,000,000 kwh.
revenue
Co., 45 MontgomeryStreet, members of the New York
Stock Exchange, announced that
in
support
Brazil
oped
current
/Loadings of
reached a moderate
largely by the dwin¬
Spring wheat flour was confined to urgent re¬
placements. Interest in rye flour picked up a bit as mills pro¬
tected against a price advance of 10 cents a cwt. Following the
break of last week, coffee prices resumed their upward course to
show a moderate gain for the week.
Business
,
j
flour
wheat
dling balances held by bakers and other large users.
distributed by the electric light
and power industry for the week ended Saturday, Jan.
30, 1954,
was estimated at
8,855,000,000 kwh., according to the Edison Elec¬
tric Institute.
/
over
Winter
hard
of
last week under buying influenced
volume
The amount of electric energy
'
Calif.—Dean
&
week last year.
Bookings
Electric Output Declines Further in Latest Week
The
Trading in grain and soybean futures on the Chicago Board
last week reached a daily average of about 47,400,000
pro¬
of Jan. 1, 1953.
as
Witter
Trade
same
placed at 2,202,000 tons and the operating rate was 97.7% of
capacity. The percentage figures for last year are based on annual
capacity of 117,547,470 tons
minimum.
a
Admits Partners
SAN FRANCISCO,
bushels, against 48,800,000 the week before, and 39,300,000 in the
now
1, 1954.
75.4% and
was
trading to
23-
Dean Wilier Go.
operations. The upturn in rye prices reflected continued
light offerings and the prospect of limitations on rye imports.
Oats advanced in sympathy with other grains but small offerings
was
|
light receipts of the cash article and the extremely
necessitated heavy feed¬
to
ing
the
ago.
annual capacity of 124,330,410 tons
on
(587)
►
cold weather in the corn belt which has
operating rate of steel companies having 96.1% of the steelmaking
capacity for the entire industry will be at an average of 73.9% of
capacity for the week beginning Feb. 1, 1954, equivalent to 1,762,000 tons of ingots and steel for castings, as
against 1,802,000 tons
and
Mi/
V-
that of
BARBARA,
Calif.
—
Hammill & Co., mem¬
bers of the
New York
change, have opened a
fice at 1006 Anacapa
the
Branck
management
Manchester.
.
.
of
Stock Ex-,*
.
branch of-,
Street under
Francis
B,
1
-
24
The Commercial and Financial
(588)
Continued
from
Chronide
7
page
if
.
Thursday, February 4, 1954
.
.
plants run¬
hope to keep our
we
ning at top speed.
Public
Utility Securities
By OWEN ELY
Notes
Included
Five Utility Holding Companies
on
among
the activities of the Eastern
Regional Con¬
York Society of Security Analysts was a field
triD to the offices of five utility holding companies in the New
York financial district.
These included two southern companies
—Middle South and Southern Company; one in the Middle Atlantic
area-General Public Utilities; and two in Central Industrial ter¬
ritory—American Gas & Electric and West Penn Electric. Other
integrated holding companies which do not maintain New York
Central & South West (Chicago), Texas Utilities
ference of the New
officefare
England holding companies (Boston
(Dallas), and the two New
material
of the
holding company offices the usual statistical
distributed, and talks were made by leading officials,
was
opportunities afforded for questions. Following is a summary
of the information gleaned at these meetings.
with
of
future
contrast with
former years,
the Presidents of these com¬
panies were somewhat reluctant to pin-point their estimates of
1954 earnings, but in general felt that they would be able to main¬
tain earnings at around the 1953 levels despite any moderate set¬
back in business.
Several of them indicated that they do not ex¬
pect to do any equity financing this year.
By thus avoiding fur¬
ther dilution, share earnings can be better maintained.
However,
this does not indicate any important change in long-term construc¬
The SEC is now permitting the parent holding com¬
tion plans.
panies to borrow moderately, and several have already arranged
for bank loans, the proceeds of which will furnish equity funds
for subsidiaries in 1954.
Despite recent fears in some quarters over mounting unem¬
ployment and the difficulty of selling automobiles and appliances,
these utility companies remain optimistic regarding the continued
growth of their industry.
This is not mere guess-work, but is
based on a careful study of population gains and the indicated
intention of
industrial units to build in their service
new
General
that
business
to
w
Public
what
all
of
of
No
job.
government
according to President Tegen.
Babcock & Wilcox "cyclone" fur¬
are being installed in several plants in New Jersey.
The
System's industrial business is well diversified and its New Jersey
subsidiaries expect to benefit by the Garden State Parkway. The
entire system is being completely interconnected with transmis¬
sion lines, so that eastern companies with high-cost coal can get
naces
The System has
equity ratio of close to 39%, which they expect to
an
maintain.
The
Philippine property, Manila Electric, contributes 200 of
the $1.70 dividend rate.
The property has been virtually rebuilt
since the war and is the most efficient system in the Orient. Eventu¬
may
be disposed of, but only if
an
adequate price
is obtainable.
West Penn Electric officials indicated that,
loss of industrial business due to 75% steel
despite some recent
operations in their area,
earnings for the
common
stock
being maintained. They pointed
are
out that the System obtains 37%
and rural customers—a
of its
revenues
from
residential
slightly higher ratio than for all utilities.
Residential load has grown faster than industrial.
Moreover, the
industrial business is now
becoming better diversified.
Hence,
they did not express any concern over the present industrial con¬
ditions.
The company does not expect to do
any
in 1954, and
possibly
none
equity financing
in 1955.
stock, thus raising the
equity ratio from 22% to 30%.
However, there will be no equity
financing this year, the parent company having
arranged for a
five-year $15 million bank loan. The directors
recently considered
a possible
dividend increase, according to Chairman
Yates, but
decided to take
action at this time.
The long-term outlook for
earnings and dividends is considered quite
favorable, however.
no
President Sporn of American Gas & Electric
presented a num¬
ber of charts
covering the electric utility industry as a
whole, and
the American Gas & Electric
System. Some of the forecasts were
carried as far into the future as 1968.
Mr. Sporn was
mistic
highly opti¬
regarding the
long-term
increase
in
residential
through further sales of major electric
appliances such
water heaters and clothes
dryers.
or
more
use
t>trends, but did
from the present
by 1968.
in the forefront of
same
south in
figure around
He felt that his
own
not give any
specific forecasts of
serves
Louisiana, Arkansas
and
an
area
earnings.
about one-sixth
more
now
productive
farm
approximates 35%.
of
the
great
as
rapid industrialization
as
economy.
The
as
common
stock
Dividends have been increased
three times in the
past five years to the present rate
of $1.40. Pres¬
ident Dixon predicted
gains in output in 1954 as
follows: residenlal and rural
9%, commercial 6%^ and industrial
14% (part of the
latter being
accounted for by the
Reynolds plant). In his talk, he
emphasized the "local
autonomy" of the operating company man¬
agements—!. e., officers of
the parent
company do not try to dic¬
tate answers to all
operating problems, but to act
reaching solutions.
as
a
have
does
catalyst in
that
currency
in
value
with
what he is willing to
And
fourth, in
conduct
to
the
preserve
a
with
here for just
you
moment.
We all know that these billions
Now
the
prosperity, unfortunately, is
first
not a mere statistic. It ib?
a
of mind> aad J
? t
fpyor an3lf +u0 American
the ?
thpir faith
v
^ca^prevent a Sepr'eTsjon
three
these
of
why I believe that
exaggerating and
that is
A^d
who
those
are
distorting this very minor decline
jn the level of our
playing
worth the candle
no
—
this
helpful
how
matter
prosperity are
dangerous game that can
a
be
never
r
of dollars which
business activity.
maximum
curtailed.
or
a
"
P60^16',?^
of
not be impaired
may
O
nomic index that records a change
in
for it.
pay
the
affairs, government must
own
~
But
where the customer alone determines what shall be produced and
jts
C*JL W
year.
ican people
it
a
gerous transition from wa**
peace-time economy, ana a I
are closely watching ev
y
will
Third, it must preserve competition in a free and open market
is undergoing
sometimes dan-
today
America
that difficult, and
every
discuss
tactic
being poured
equipment
come—directly or indirectly—from people who are willing to risk their savings in pro-
basic requirements have been met might prove in advancing their
in the past 12 months. We have private political fortunes,
peace.
The purchasing power of
Now it would be wonderful, of
the dollar is practically the same course, if our economy always
ductive
have
process
buyer, most decidedly, is boss. So,
tion, anywhere.
with these blessing
ways
into
plants
new
have
are
and
to
enterprise.
And if this
is
to
continue
rapidly
enough to meet the needs of our
growing population, and to prevent
recession, then
things:
government
must do two
First, it must maintain
an
eco-
en¬
ever-increasing flow
of private investment.
And, seccourage
an
_
„
„
an
encourage
American
business
t
atmosphere
and enable
to
operate
at
peak efficiency by scrapping obsolete, labor-w a s t i n g facilities
though
even
out
have
and
it
as
they
are
not
been
not
worn
fully de¬
was
But
when
fulfilled
it
the
deprives the
opportunity
goods,
and
of
consumer
to
better
more,
buy
more
goods,
the
at
grew
but that
enjoyed
ever
in
the
at
final
and
re-
never
To me it has althat our economic
good deal like the
seemed
progress is a
the
0n
break
that
waves
roaring
in,
beach
the
over
incoming tide.
comes
government has
steady, unfaltering pace;
happens in any na-
a
Each
one
itself,
spends
and then recedes—but in doing so,
it contributes to the volume and
quirement—as it is now striving
to do—then its job will have been
done. From that point on, it is
up to us, and the future of business and industry in this country
will be exactly what we, ourselves, have made it. The respon-
the force of the next wave, which
always comes in a little farther,
sibility
And
is
tion
earn
we
the
have been
we
the fourth
produce
to
where
the history of the world.
and will
and
market
nation—has
preciated. Failure to do this deprices the worker of the power to
more
And
ago.
year
a
free
a
able to achieve the highest level
of prosperity that this nation—or
any
far
So
I
believe,
has
But
our
that
they never observe the onward movement of the tide itself,
one
can
magnificent
a
responsibility
does
it
so
is, I think, with
many
pessimists today. They sim-
our
P*y cannot see the tide for the
waves
But
American
that
done
produc-
no
their
all
spend
obsessed with this process
come so
of
concerned,
business
job.
cannot—
we
research and
as
are
doubt,
and
ours
not—deny it.
who
those
Yet
time watching the waves can ber
think, for
people
if
moment, what
a
it would
revelation
a
they
be
could
to
these
read
back
through the minutes of this Cham-
lowest possible prices.
not
Unfortunately,
however,
this
encouraging economic atmosphere
does not prevail in this country
today.
For many years our tax
sell our products, and our sales- ber of Commerce, and study all
manship, perhaps, is just a little the discussions, reports and resorusty nowadays
lutions that have occupied the at-
laws have
been
structive
based
the de¬
on
proposition
that
any¬
thing which is bad for business is
automatically good for the country.
the
end
after all these
now,
years,
government is trying to
this
situation.
It
has
corcome
to
understand, I think, that nothing which is bad for any group
of its citizens can possibly be
good
for any other
group, or for the
country as a whole. And so it is
striving,
conscientiously,
in the nation
everyone
tive to do "a
little
to
give
incen¬
an
for him-
more
u
self, for his family, and for each
generation" as Secretary Humphrey has put it.
To
that
working
the tax
end,
Congress
is
now
on a
complete revision of
laws.
The amendments it
with
After
that.
these
all
still must
We
of short-
years
when
people
have
been
fighting to buy our wares, it
wouldn't be surprising, of course,
if some of us had forgotten just
ages,
*?ntion oft. y°ur, membership at
«?es<* meetings during these past
this
gentle
art
nomic
and occupational group in
this country, to increase their pro¬
ductive efforts, and thus to en¬
large their
such
own
rewards.
revision
a
And
be
can
tion, America has fought and
each
real
of
un¬
derstanding of the problem? and
needs of all of them, then-*-
the
crest of an unchanging tide that
to clear out hfsTcist winter's stock.
One
the
of
left
suits
over
was
nf™
hnm
an^qbsolate nightmare to
was
perfectly
from
material of the finest
tailored*, and
Tf
t
checks,
enormous
dominant colors
and
were
qual-
the
c0
'Tbe
as
called
his
0£
assistant
than
country
all
and
all
of
the
deficit
of
the
make-
work schemes that have
dreamed
Many times, I
must have been
said:
and
of time-
And
Gentlemen, when
analyze the forces which
we
control
this economy
think,
that
of ours, we find, I
there are four basic
^requirements
can-and
First,
only in
which
government
should—provide:
of
course,
is
peace can any
,
peace; for
nation grow
bavp
their
wild_
am sure, there
many of your
freedom
get
dom
long as
opportunity and free¬
of
of
competitive
continue to
So
let
exist
no
one
enterprise
in this
country.
tell
that
us
we
.
.
have reached the end of our
Well, when he got back about Golden
Age; for this, in truth,, is
an
hour later, he found to his
only the beginning. In my opinion
...
,,
.
amazed
been
wreck
rack
and
of
turned.
Sam's
,
,
,
i
delight that the suit had
sold,
but
so
the
store
was
clothing had been
A
showcase
face
and
was
hands
we
a
A whole
Sam.
was
,
umc
°
j
cam »
ca;d
hnnn'eneri?
the doorstep
on
era
tion has
ever
Before
us
of
progress
of
lies
the
this
seen.
na¬
:
'
>
the
challenging
task of taming the atom. We have
rut
wprp
Hie.
stand
greatest
over¬
broken.
yet to
w
in
and .his suit was l
harness
earthly
the
me
energy__the
source
auuxce
rays
of
ui
of
all
an
the
sun; for today' only one-tenth of
of that enerSy is put to use.
the
Did
In
our -
laboratories
we
are
per-
fecting amazing automatic devices
„nh
id
a"
o
"he
wil1
didn't
diminish still
further
Ture had
«numflui effort.
hXva^erlp wim his'se^ng-eyk ^increase enormously the prodo!*"
P w1"11115 see g y duction and pay of our workers,
-biect
so,
our
nnt
™e™hers ^ho felt that the tide
turned;
but of course it never
had—and
it never will as
to
been
ever
since the beginning
up
gotta
we
in
even
that
est area™s-
rid of that
suit. See if you can't figure something to do about it, while I'm
gone."
"Sam,
roillr)
standard
a
fabulous
So
fmagined it
e?t frelms
proprietor
the
have reached
we
iivjng
grandfatbers.
pur-.
out
soins
was
day,
one
today
'
ple arjd orange-
]unchj
pre-
green
has carried 11 always higher until
cut
ity, but the pattern consisted of
in my humble opinion—it will do
more to promote
prosperity in this
spending,
sur-
selling is
practiced successfully; so if any
of you should find yourselves in
that unhappy predicament, let me
accom¬
plished with fairness to
a
if
*n the lifetime of this organiza-
of
is
considering are designed to encourage farmers, workers, housewives,
dependents, businessmen,
investors, and every other eco-
years-
■
r
'vived six wars. It has suffered
disastrous periods of inflation and
deflation. It has weathered an
endless series of recessions, de*
simply remind you of the clothing pressions, and panics. But through
store proprietor who' was trying it aU> this nation has ridden the
how
But
these groups, and with
Mississippi. Postwar growth has
to
a
2300 kwh.
system, which is
been very rapid, with 1953
output nearly three times
In 1946.
This growth has been due
equity
equip¬
engineering progress, would benefit by these
Middle South Utilities
as
ranges,
builder—possibly increasing
residential
to 5-6000
well
as
He considered the heat
pump,
providing year-round heating and
cooling with the
ment, to be an important future load
annual
revenues
passing
strive
government
stable
a
shrink
not
possible incentive for all of its
citizens so that the ingenuity, ambition and enterprise of the Amer-
rect
Southern Company's area has been
growing considerably faster
than the U. S. as a whole. The
System has spent nearly half a
billion dollars on construction
during 1948-53, and about 40% of
the new securities sold have been common
it
way:
Government must pro-
vital job to do in connection with
this process, and I would like to
and
ally this property
do
can
us.
But
which will
attained
people, in
And it is our
our
walk of life.
every
for
uctuwaivu.
ond, it must create
four of the most efficient generating units in the country,
area.
doing—
depression.
It .a
is the
iv
mc
only way that I know of, to increase, the
earning power,
the
purchasing power, and the living
i^cvcih
prevent
three
the benefits of low-cost fuel in the western
in
do—and
can
is proud
of the engineering and financial progress accomplished in recent
years.
By the end of 1954 the System should have in operation
or
American
nomic atmosphere which will
first company visited,
the
Utilities,
areas.
is
Second,
re¬
all up this
marks, let me sum it
and prosper without the violent
boom and bust that war produces,
vide
prosperity.
Now
some
In
imporpolicy in the world
policy that insures America's
—a
standard
and Cambridge).
At each
the premiums on the most
tant insurance
rambling
somewhat
these
concluding
in
Gentlemen,
So,
Business, Not Government, Has
Responsibility for Prosperity
£ow
COume
T
kll
don't
Sam's.
bound
to
we
i
mean
one
to surest
Jhat l'a^rSve
mend
true
but
methods
but
admit he possessed
spirit of salesmanship.
need
more
And,our Population is growing [n
of
rapiaity-
I'm
the
And
of thaf^spirit today
.
•*»*.
.
-.
Wtthiif the next 20 years, we
are told, we will have 45 million
more people to feed and to house
Number 5296
Volume 179
The Commercial and Financial Chronicle
...
(589)
and
clothe.
to
what that
Well, let
it
,
to
me
simply tell you what
of steel. Last
That is the lar¬
the Delaware.
gest
single
ever
been
if the
plant
steel
built
at
that
capita consumption of
steel remains what it is today—
and even if it does not rise, as it
of
mands
these
That
people.
Works
a
new
17
every
take about it. Ours is
I
think
can
dire
for
mis¬
no
satisfaction
to look
than to
back
once
be
able
more
glorious future that
fore us!
greater
no
then
upon
the
lies
be¬
now
who will,
for the time you spend with them.
an
of
The
Many
ones
will
women
can
especially
that
extent
be
revealed
to
with
their
situation
and
you
sit
you
make
be
can
up
certain
that you will obtain business from
them.
Frumberg Enters
Quite
often,
these inter¬
views reveal opportunities for do¬
ing business that would otherwise
to
come
Law Practise in N. Y.
R.
Frumberg, Chief
Interpretative Section of
the
SEC's
New
light.
Go
over
your
others is money in the bank.
1
i
a w
in the
N
n
York
e w
City
in
a s s o
ciation
with
M.
Mac
Schwebel.
the
joined
staff
the
of
General
Counsel of the
Commission
Chief
of
Counsel
1942,
the
on
to
assigned
was
ability to make
derstandable to others.
people who
the
the
to
un¬
We expect
not familiar with
are
and
bonds
been
Chair¬
man
of
will
ficer
of
York
clear to
and
us
portunities
often miss op¬
we
to
in
"shop terms,"
facts that
just because
talk
we
gloss
or we
not
are
clear to
over
others,
think they know
we
U.
New
J.
George
Gruner
investment
banking busi¬
associ¬
Gruner became
1939
in
when
he
Chicago office to organize
ing that
1948, Mr. Gruner has been located
held by the manu¬
They got all
together and
men
the head
sales manager stood up and intro¬
duced the production manager. He
into
went
long discourse about
how nutritious their dog food wa?
in
a
comparison with other brands..
nicipal
in
bond
the
Since
office
York
mu¬
a
department.
New
the
of
been
where he has
Vice-President in charge of
that
company's
Higginson
firm,
bond
municipal
business.
late John
Nuveen
by
in Chicago
staff of the New York regional
Finally, he asked, "Do you know
in 1898, is said to be the oldest
office, and became Chief of the which dog food has 20% more
and largest underwriter and dis¬
Interpretative Section in 1949.
protein in it than all the other
tributor of municipal bonds ex¬
Mr. Frumberg was born in New brands?"
Some salesman
in
the
clusively in the United States. It
York City, is a graduate of the back of the room
answered, "Why
was
incorporated in 1953. Head¬
McBurney School qnd Worcester ours does,
of
course."
"That's
quartered in Chicago, the Nuveen
Academy, Harvard College and right," he said, "But if so. why is
firm has offices in Boston, Cin¬
Harvard Law School.
it that our sales
He
is
sistant
Professor
As¬
are
low?"
so
the
of
tion
of
of
Federal
New
Bar
York,
Associa¬
New
Jersey
and Connecticut.
The only way you can make them
like it is to tell them the good
things
will
it
for
do
Not
them.
how it is made!
❖
Halsey, Stuart Group
Offers
*
Eqp. Tr. Gtfs.
time
next
.
.
1.50% to 2.80%, according to
The
issue
is
to
the following new
railroad
cost
be
secured
by
standard-gauge
equipment
estimated
to
a
says,
help
you
you
switching
two
Diesel
locomotives,
electric
locomotives.
and
all-service
Issuance of the
cer¬
tificates is subject to the authori¬
of
sheet
hand
paper and hold
the date. It may
over
make your point if
asked him to read the follow¬
to
"Not
for
there been
hension;
been
so
so
so
many
has
years
much grave appre¬
never
has
the
future
incalcuable. In France the
political caldron seethes with
zation of the Interstate Commerce
certainty. A11.the energies and
Commission.
sources
Associated
&
R.
Inc.
Co.,
W.
Pressprich & Co. and Mc& Co.
Europe.
a
solemn
Tobey & Kirk Admit
11,
Eric
will be admitted to
Tobey
&
members
Kirk,
R.
Anderson
partnership in
52
of the New
Wall
York
Exchange.
Street,
Stock
the
contrary
in¬
some
far
other
were
as
final
factors
which
operating results
primarily
the
were
were
con¬
the strong
were
These
reflection of the high level of business
a
nationwide basis.
demand
for
rates
influence
credit
particularly heavy in
was
the
first
larger banks.
also
higher during the year and
averaged
as
was
S. securities and
municipals at the
combination
on
showed
a
enabled
earning assets with
large gain. Expenses
the
were
time
same
the banks
to
rose
increase
sharply.
the. rate
.
of
result that gross earnings
higher due in large part to
increases in wages, salaries and general operating costs.
The gain
in gross, however, was more than sufficient to absorb these larger
charges and pretax earnings
of
Taxes
provision
course
made
for
were
at
near
or
higher and in
were
record totals.
■
vu.
number of instances
a
a
profits. Even so, net operating
earnings showed substantial improvement over the previous year
and in many instances were the highest in history.
was
excess
In the tabulation below the reported earnings for 17 of the
major banks in various sections and citieg of the country outside
of New York City are presented. With the exception of First Na¬
tional of Chicago and Northern Trust which report net profits
all of the banks show operating earnings—that is
operating income before security profits or losses and reserves.
However, some allowances should be made for differences in
accounting methods and treatment of taxes.
Per share figures
have been adjusted for stock dividends and splits including those
made
shows
or
far in 1954.
so
is
It
interesting
,
note that every
to
in the tabulation
bank
gain in earnings and that the shares
a
are
now
selling at
their high for the past year.
near
1-,.
in New York.
Reported Earns.
Boston:
First
E. D. Webster Joins
National
Shawmut
National
i»53
joss
$4.30
$3.83
3.46
3.11
1953 Price Range
Current
Price
High
Low
491/2
52
43%
38
39%1
32%
California:
Nathan C. Fa,
I Co.
PORTLAND, Maine — Earle
Douglass Webster has become as¬
sociated with Nathan C. Fay &
Mr. Web¬
with Timberlake & Com¬
was
from 1938 to 1948, continu¬
with the successor corpora¬
tion, Patten, Arnold & Co., until
,
American Trust
Bank
(San Fran.)
America
of
:
Security First Nat. (L. A.)
Chicago:
Continental
First
Illinois
—
National
National
Harris
Trust
Northern
Trust
2.75
2.43
33
3.14
2.72
33%
10.68
10.53
33%
.
35
121
119
7.64
7.03
86
16.86
16.49
263
27%
'T'
281/2
94
81
941/2
273
226
36.82
31.41
382
380
330
23.68
20.34
430
420
380
ing
the
latter
firm discontinued business.
He is
the
of
end
when
1953
well known in Maine Masonic cir¬
cles and is at present
Recorder of
Commandery
No.
2,
Portland
Knights Templar, and Assistant to
the Grand Secretary of the Grand
Lodge of Maine A.F. & A.M.
He
has
recently been nominated for
elevation to the 33d degree Scot¬
tish Rite Masonry.
Philadelphia:
Fidelity-Philadelphia
Penn. Co. for Banking
Philadelphia National
6.06
5.30
65%
68
61
*3.16
*2.79
43%
431/4
37 y4
8.38
8.09
IO61/4
1131/2
IOP/2
23.72
22.44
368
370
303
3.72
3.48
451/2
44%
38
5.52
3.68
441/4
44%
321/4
7.53
6.91
631/2
64%
56
4.20
3.89
44%
44%
371/8
Pittsburgh:
National
Mellon
Peoples
First
Detroit:
Bank
Detroit
National
Manufacturers
National Bank of Detroit
moment.
No
It
man
is
UTICA, N. Y.
Valley
Genesee
of the New York Stock
Officers
A.
are
Exchange,
issue
A.
James
Eckert,
Eckert,
Jr.,
Morgan, member of the
and
to
"Harper's
Weekly,"
years
ago.
Oct.
10,
David A. Gibson,
and
Henry
Yates
Pomares,
P.
Eckert
Assistant
Treasurers; and Gertrude Y. Eck¬
ert, Secretary.
the
Government
in
BREAKDOWN OF—
Govt. Bond Portfolios
Sources of Gross Income
Kenya Colony and Uganda
Head
Office:
Branches
26, Bishopsgate,
London, E. C. 2
in
India,
Pakistan,
Ceylon,
Burma, Aden, Kenya, Tanganyika,
Uganda, Zanzibar, and SomaliAuthorised
Paid-up
Reserve
Vice-Presidents;
seem possible but
foregoing was printed in
1857, 103
Bankers
land
our own
Dpesn't
the
James
Nov. 30.
of INDIA. LIMITED
Exchange.
can
United States, no man can see the
end."
the
238
Street, announces that it
a member corporation
Robert W.
to
Inc.,
ended
NATIONAL BANK
The Mohawk
Co.,
years
Go.
has' become
President;
Of
—
Investing
of
indifferent
fiscal
*For
Mohawk Valley Inv.
Member of NYSE
troubles in the
feel
events.
Feb.
re¬
sorely
tri^d.
Russia hangs as
Halsey, Stuart
usual, like a cloud, dark and silent
the offering are on the horizon in
Master Hutchinson
On
un¬
of the British Empire are
with
in
On
gains shown in
ing:
$3,737,171: 23 Diesel electric
road
white
your
as
.
one
"Things are different now, one
just doesn't know what to do, buy,
associates offered yesterday (Feb. sell, or what." Answer him, "Yes
3) $2,970,000 New York, Chicago Sir, that is the way it seems but
& St. Louis RR. 2%% serial equip¬ there is an old saying that nothing
ment trust certificates, maturing ever
changes
about
ups
and
annually Sept. 1, 1954 to 1968, in¬ downs." Type the following ex¬
clusive, at prices scaled to yield cerpt from Harper's "Bazaar" on
from
well
ster
Halsey, Stuart & Co., Inc. and
maturity.
as
pany
some
there
so
cinnati, St. Paul and Los Angeles,
Co., 208 Middle Street.
iff
Things Are Terrible
The
assets.
with
The
Law, New same voice answered, "The dogs
York Law School; Lecturer, New don't like it!"
York
Institute of
Finance; and
That is just the point. It is one
Lecturer, University of Vermont. thing to know something is good
He is also Co-Chairman, Commit¬ for
your customer—but they have
tee on Corporations and Securi¬ to like it before
they will buy it.
ties
earning
after reserves,
John Nuveen & Co., founded
the
a
This
its
joined
when they do not. It reminds me
of the story about the sales meet¬
was
then,
influence
were
return
than 20 years
more
ated with Lee Higginson Corpora¬
tion
and
variation
countrywide, it helped earnings of all banks.
prime rate at the larger banks which i had been maintained
at 3% during 1952 was increased to 31/4 in April, 1953. Yields on
the
Mr.
business
operating
The
Wall Street.
the
the
demand for bank credit and the increase in interest rates.
branch,
ness,
in
The two main factors in this connection
Interest
A veteran of
in
Obviously
cerned,
this
of¬
firm
the
40
situations'
clarify
He
Nuveen
in
considerable
was
dominant
the
resident
uniformity
However, the net result was that the average loan volume
for 1953 was substantially higher than in 1952.
Di¬
be
extent
deposits
changes
the previous year for many of the
the
of
that in spite
was
some
hand, business borrowing failed to show the normal seasonal
expansion and at the end of December was actually lower than
Nu¬
veen,
considerable
was
to
half of 1953 all throughout the country. Thus, loans did not show
the usual seasonal decline.
In the final six months, on the other
an¬
John
geography and
stances and declines in others.
The
nouncement
by
there
in
tical
on
ac¬
cording to
interesting features of the reports
differences
This is not to suggest that all
experienced iden¬
di-
rector,
All insti¬
activity and the prosperity of the general economy which occurred
elected
and
been very favorable.
results achieved.
factors
V i c^-Presi¬
in
perfectly
One of the
joined
has
and
dent
stand
are
has
exclusively, effective Feb. 1,
1954,
the investment business to under¬
things which
Gruner
Co., underwriter
distributor
of
municipal
rectors.
our
thoughts
our
their
in
Corporation Finance.
he
1944
Understood
overestimate
we
phia
served
In
Yourself
facturer of dog food.
Frumberg
Division
Make
Sometimes
J.
Nuveen &
Board
in Philadel¬
where he later
George
John
the past month have
over
wide
there
of John Nuveen Go.
Bank Stocks
—
tutions, with only one or two exceptions, have reported increases
in operating results and
many show the highest operating earn¬
ings in their history.
of
written.
were
Gruner, V.-P.
*
and lose business because
Mr. Frum¬
berg
of
%
the
practice of
staff
think
you
like to have your offer of
assistance. Time spent in helping
York
engage
R.
that
prospects
would
of
regional office,
has resigned effective Feb.
2, to
Irwin
likely
G. J.
their
list and pick out some of the most
Irving
JOHNSON
Operating statements of major banks throughout the country
issued
conditions,
(as will
when
you
them
report)
know
you
entire financial
down
forebodings
have their confidence to
you once
the
—and
be
grateful to you for your help in.
preparing their tax forms and if
not
,
Irwin
The foregoing was sent to me
by my friend Arthur Wray of At¬
lanta, Ga. Right you are Arthur
new
unchang¬
ing tide; and I only hope that I
may live to witness the 200th An¬
niversary of America's Indepen¬
dence just 22 years from new; be¬
cause
assistance in pre¬
income tax.
Others
paring their
will not.
people who will
some
your
Fair-
months
Yes, Gentlemen. Make
are
the old world is still spinping along and what a lot of prog¬
ress
has been made since these
the next 20 years—d it took us
30 months to build tne last one.
«
There
appreciate
repay you many times over in ra¬
diation and also in direct business
million
45
means
E.
This Week
Income Tax Time Can Pay You Dividends
per
always has throughout this cen¬
tury—it will still take 14 more
plants of that size to meet the de¬
less
By H.
By JOHN DUTTON
has
time. But
one
Bank and Insurance Stocks
Securities Salesman's Corner
know, we completed
Fairless Works, up-river
as you
our new
on
imagine
economy?
you
our
in terms
means
year,
Can
means
25
Protectorate.
Capital..
Capital
Fund
£4,562,500
£2,281,250
__£3,675,000
The Bank conducts
banking
and
every description of
exchange business.
Trusteeships and Executorships t
also undertaken
17 N. Y. C. Bank Stocks
Will
be
sent
on
request
Laird, Bissell & Meeds
Members New York Stock
Members American
120 BROADWAY,
Telephone:
Bell
Exchange
Stock Exchange
NEW YORK 5, N. T.
BArclay 7-3500
Teletype—NY
1-1248-49
(L. A. Gibbs, Manager Trading Dept.)
Specialists in Bank Stocks
26
The Commercial and Financial Chronicle
(590)
to
Continued jrom page 3
use
prospectus more than 13
a
the
Under
Bills Introduced to
Amend Securities Acts
and
rities
proposed
of
underwriters
secu¬
Act to
tude
to
public furnish investors with ade¬
advertisement.
securities
offered.
intended
that
The
Congress
information
this
be
widely disseminated to
during the period be¬
the filing of the registra¬
investors
tween
tion
statement
it
time
the
and
effective.
becomes
Section
8
(a)
of
the Act contemplates that or¬
dinarily there will be a 20-day
jperiod between the original fil¬
ing
date
effective
the
and
Under
gives the Commission author¬
ity to shorten the period in ap¬
propriate cases. Section 5 of tne
bill, the seller will
civilly liable to in¬
adequacy and ac¬
of prospectuses employed
offering or sale of secu¬
curacy
in
the
for
vestors
the
rities.
tion
Statement
Section 5(b)
of the present Act
without
requires,
time, that all persons use stat¬
utory prospectuses in connection
Act, however, in effect prohibits
with the sale of
offers
rity.
sales
or
securities
of
dur¬
limitation
any
in
registered secu¬
The third clause of Section
4(1) exempts dealers from the
.Section
2(3)
tion
defined
to
of the Act
include
is
"sell"
both
offers
sales.
Representatives
rities
of
the
secu¬
industry have repeatedly
that dealers and under¬
urged
writers have hesitated
to
during the wait¬
ing period to prospective invest¬
ors concerning
proposed new is¬
because
of
that
fear
a
such
activities
by them may involve
making of illegal offers. The
proposed bill will permit freer
the
discussion
and
by
means of prospectuses filed
with the Commission prior to use
be
The
authorized
by
bill, however,
to make
the
will
bill.
continue
unlawful sales
and
con¬
tional
and
requirements of the
statement
has
it
have
become
regis¬
been
met
effect
order
sult,
to
is
it
within
curity
effective.
to
re¬
amend
three sections of the present stat¬
Section 2(3) of the Act (Sec¬
ute.
tion
1
the
of
amended
to
bill)
and
quence,
Section
Act
to
8
In
conse¬
5(a)(1)
of
the
make
be
separately
"sale."
(Section
continue
would
define
"offer"
of
the
bill)
unlawful
will
sales
Tprior to the effective date of the
registration statement but will not
make
unlawful
ouch date.
Act
offers
Section 5(b)(1)
would
be
amended
tion 8 of the bill
ten
prior
offers
to
after
to
of the
by
Sec¬
permit writ¬
the
filing
of
a
registration statement and before
the effective date
prospectus
ments
of
with
by
meeting
Section
the
of
means
the
10
a
require¬
filed
and
Commission
prior
to
(c) of: the
Act (Section 8 of the bill) would
use.
A
Section
new
5
make unlawful offers
daling 0f
Section
registration statement.
a
10
amended
prior to the
of
the
Act
would
by Section 9 of the
posed bill to authorize the
appropriate
•the
prospectuses
waiting
period.
be
pro¬
use
of
during
The
bill
would authorize suspension of the
use of any such
prospectus if the
Under
not
been
would
The
in
the wider
encourage
use
of
second
tion
except
price,
underwriting
•date, and other information de¬
pendent upon price), identifying
statements (the brief
"screening"
Advertisement,
Rule
contemplated
by
132),
ments
as
thorize
and such other docu¬
the Commission
may au-
as
appropriate in the pub¬
lic interest
or
for the protection of
this
to
in
connection
with
the
dis¬
position of his portion of the reg¬
istered
issue
of
securities
being
distributed.
The
and'
effect
of
the
these
Section
is
of
dealers
of
they
as
provisions
the
require
in
security to
to investors
in
engaged
are
distribution.
Act,
under¬
engaged
a
prospectuses
long
the
5
to
and
deliver
so
of
distribution
Moreover,
any
dealer, even though not a par¬
ticipant in the distribution, must
deliver
prospectuses
his
cus¬
year
after
statement
be¬
tomers for at least
the
registration
effective.
comes
sues
sold
are
short period
to
one
Since
within
a
reason
of
relatively
long been recognized that
the one-year period should be re¬
duced
to
a
period which gives
to
securities
the
mechanics
distribution
in
of
this
country.
Section 7 of the pro¬
posed bill, therefore, amends the
third clause of section 4 (1) of the
Act to reduce the one-year
to 40 days.
The
proposal,
ever,
maintains
present
prospectus
gaged
in
long
so
the
as
period
how¬
law
by
use
the
requiring each dealer to
he
distribution
is
of
en¬
the
registered securities.
(3)
Simplification of Information
Requirements
Used
of
for
More
After
the
Prospec¬
Than
13
Effective
Registration State¬
a
tion
As pointed out above an under¬
writer or a dealer must use the
long
so
as
he
gaged in the distribution of
istered issue.
is
a
en¬
reg¬
of
period
may
extend
beyond
13
months after the effective date of
the registration statement.
There
also
other
which extend
types of offerings
over
a
considerable
period of time, such, for example,
tions
or
involving long term
conversion
date
a
By
of
use.
(25)
time
of
certain
of
as
its
types
including
statements
90
the
at
contain
may
least
finan¬
at
date
a
prior to the filing
date.
Therefore,
the
original
prospectus may continue to be
days
used at
time when the informa¬
a
tion
contained
date
as
its
to
is
therein
of
as
a
early as 16 months prior
use.
As
a
used
informational
statute,
requirements
for
than
more
statement
than
prospectuses
months
13
the effective date
tive
the
under
consequence
present
after
of the registra¬
are
restric¬
more
those
applicable
to
prospectuses
used
in
the
13
months immediately following the
effective date of the registration
the
section
Under
statement.
9
of
10(b)(1) of the
becomes section 10(a)(3) and,
bill,
Act
section
eliminate
to
anomaly,
that
effective
aforementioned
changed to provide
prospectus is used
a
than
therein
the
is
where
more
months after
nine
be
Raising
(4)
of
as
Exemption
tating
the
information
the
date
shall
Financing
date
a
within 16 months of such
op¬
rights where
the issuer at least must continue
It
use.
—
Facili¬
of
Small
bill
would
amend
rities
to
of
section
the
$500,000
of the Secu¬
3(b)
raise
to
which the
the
present
of
is
the
prohibition
credit
proposed
bill
period
sion
to
sufficient
sues
on
of
Commis¬
30-day
a
insure
to
201
six-month
The
that
sold
are
the
extension
on
for
distribution.
Section
days.
believes
hibition
in
on
continues
reduce
to 30
pro¬
of credit
that
is
is¬
new
cash basis.
a
(6) "When-Issued" Trading
The
tion
last
two sentences
12(d)
of
the
of
Sec¬
Securities
Ex¬
change Act of 1934 deal with the
subject of "when issued" trading
the exchanges.
The first of
these two sentences provides am¬
on
ple authority for the regulation of
such trading under the standards
of public interest and protection
of
investors
that
throughout the act.
tence
represents
used
are
The last
sen¬
attempt to
deal with the problem somewhat
more precisely.
The last sentence
an
apparently not fully consid¬
was
ered,
right
for
where a security is a
the subject of a right
granted to holders of a previously
or
registered security, "when issued"
trading cannot in the nature of
things serve "to distribute such
unissued
ers."
security
Rather
sell
the
may
202
the
of
hold¬
such
a
mar¬
holders
such
may
security and
acquire it.
Section
proposed
would
of
tence
to
provides
unissued
others
fore,
it
which
in
ket
repeal
bill,
the
Section
there¬
last
12(d)
sen¬
thereby
permitting "when issued" trading
be
to
from
$300,000
amount
within
the
Commission, subject to
Thursday, February 4, 1954
.
regulated
the
under
more
general provisions of the preced¬
ing sentence.
(7) The Offering
of Institutional
The
ment
for
in the public dis¬
high-grade so-called
institutional type debt securities,
use
tribution
will
part
a
This
vestors.
Act.
The
requires
inclusion
in
Sections 10, 11, and 13 of the Se¬
curities Act so that there will be
departure from either the dis¬
no
closure standards or the liabilities
imposed
sion
ticular
flexibility to
greater
requirements
the
to
adjust
financial
needs of small issuers.
The pres¬
ent
indenture
provisions
the Trust Indenture Act.
This
those
statutory sanctions (as im¬
plemented by rules and regula¬
providing for offering cir¬
the light of the Commission's rule¬
culars
overall
tions
tion
tion
to
and
by
for
order
Commission
to
prevent
ac¬
regulations) relating
offerings will be main¬
tained.
Extension
Both
Section
Credit
of
Firms
by
as
to prohibit a person
broker and
a
funds,"
amendment
make
in
Section
in
Act
this
mandatory use of prospectuses by
dealers over a longer period than
would
of the proposed
ified by
Section
24(d)
new
se¬
distribution
of
relates to
be
tion 402 of the bill would
that in the case of facecompanies, unit
investment trusts, and open-end
management
companies
(i.e.,
amount certificate
funds")
even
though the securities to be issued
thereunder /ieed
not be regis¬
participated during the
preceding six months." This pro¬
tered under the Securities Act.
vision
lates
was
apparently intended in
part to restrain distributors from
selling
their
in
issues of securities to
new
brokerage
the
period
customers
who,
1934, had
prior to
commonly been margin custom¬
ers; this was to be accomplished
by
prohibiting
the
distributor
from
placing such securities in
margin accounts.
*
Another consideration that may
underlie Section
11(d)(1) is sug¬
gested in the following testimony
of
an
underwriter in the
hearings
ings
we
sell
Indenture
continue
to
dentures
own
underwrit-
Act
which
will
require that trust in¬
the
statutory
protection of in¬
contain
not
permanently
tion to the company
rities we have been
obliga¬
whose secu¬
paid to sell."
(Stock Exchange Practices, Hear¬
ings before Senate Committee on
Banking and Currency, 73d Cong.,
2d Sess., 1934, p. 6750.)
In
that
there
conflicting interests, who must
to security holders, and
report
other
take
affirmative
investors'
and
in
interests
to
the
action
rights
under
their
protect
event
of
to
default.
(8)
Simplified
Registration
cedure
Investment
for
Pro¬
Com¬
engage
their
tice
companies
which
in continuous offerings of
shares
file
as
new
a
matter
of prac¬
registration
state¬
ments under the Securities Act of
1933
about
der
to
once
have
each year in
registered
or¬
shares
in general, that new issues should
rities Act
provides that securities
may
ors
be
rather
placed
is
desirable,
witli
invest¬
expiration
of
one
year
from
the
secu¬
which
on
rity was bona fide offered to the
public,
which,
in
most
cases,
approximately
means
effective
the
the
of
402
year
one
of
date
change this requirement by
a
class
subject matter of the deal¬
is the
transaction.
er's
the continu¬
is asserted that
It
i
pro¬
dealer must use the
as long as the issuer
any securities of the
as the security which
viding that
prospectus
is offering
same
the
statement.
Section
proposed bill would
registration
offering practices of these in¬
vestment companies justify a re¬
quirement
that
all
dealers be
compelled to use the statutory
ous
prospectus
the
same
On
the
long
so
class
other
this
hand,
would
of
shares
as
being offered.
are
is argued
it
the
have
effect
preventing dealers, who are
not
distributors, from effecting
transactions
in
outstanding in¬
vestment
less
be
securities un¬
company
be registered by filing a reg¬
than with speculators.. istration statement -but does not
they
the
are
the
power
to
402
of
inadequate
to
rule-making
conferred
bill
b,y
would
.
Section
be
deal with the problem.
view
In
problem
views
an
402
panies
Investment
initially
it
pro¬
that
example,
Section 6 of the Secu¬
words
a
of
for
available.
other
use
independent indenture trustees
with adequate resources and free
vestors,
for
be
placed, and
our
not
able to get pro¬
spectuses from the issuer or an
underwriter and able to get them
in time and unconditionally, and
provisions
to
have not fulfilled
need
connection with a
in
,a
security after
in
transaction
the
dealer
in the
existing law, a
a
participant
not
the first date
of
Trust
is
spectus
the
provisions of the
prospectus
the
use
being offered.
Under
that
substantive
dealers,
long as the registered security
is
closure in prospectuses under the
Securities Act.
It does not affect
indentures
our
brokerage - department
customers, who often carry secu¬
rities on
margin, the securities
we
proposal, in substance, re¬
only to the problem of dis¬
preserve
the bill:
"If
This
/all
not participating in the
or
distribution,
so
which
which must
Sec¬
require,
in effect,
bill makes a sim¬
Section 306(b) of
indentures
Investment
contained in that subsection.
after
qualified under that Act
the
of
Company Act of 1940 by adding a
further exclusion to those already
Securities
Act
This
Section 7 of the bill.
provision appears in Section 402
of the proposed bill which amends
Section 304
Indenture
under Section
be required
4(1) of the Securities Act as mod¬
consistent
of the
10
respect.
Trust
which he
with
problems.
formally
the
dealer from "tak¬
the
with
it
adopted
who was both
was
deal
to
in
as
Investment
the
to
to
proposed
a
Company Act would provide for
would, therefore, amend Section
305(c) of the Trust Indenture Act
change in
the
ing into margin accounts
curities
Act
Dealer
authority
ilar
of
Act
as
unnecessary
disclosure
Secu¬
11(d)(1)
rities Exchange
New
on
That
Broker and
seems
Section 303 of the proposed bill
to
Issues
a
making
viola¬
such
of
small
(5)
quirement
referred
commonly
"mutual
of
re¬
above-mentioned
practice of continuous offering of
securities by certain types of in¬
vestment companies, particularly
sin¬
gled out by Section 305(a)(2)
sellers.
upon
In view of the
the
prospectus of the analysis of par¬
paragraph (3) also
references to
contains appropriate
distribution
the
be
of the registration
statement
at
appropriate inter¬
vals and will be furnished to in¬
made
Alvhich
of
will
information
current
that
305(c)
proposal Will afford the Commis¬
shares
of
the Securities
by amending their existing
registration
statements
rather
than by filing
new
registration
statements. Paragraph (3) of this
new
subsection (e) will require
who
Requirements
(e)
invest¬
periodically to
such
Act
of the Trust Indenture Act of 1939
registration
adding
under
registered
securities
the
by
subsection
number
the
increase
is confronted
from
Act
permit
appropriate terms and conditions,
may exempt
public offerings of
Section
Invest¬
companies
ment
of
with
the
new
a-
which
of
24
Company
thereto
would
bill
proposed
Section
amend
proposed
tuses
by amendment. Section
the
of
403
Commission, in connection "mutual
rule changes to
whether
provide for more simple prospec¬
with
additional
provide for registering
securities
Type of Debt Securities
5'
Act
does contribute
months after the
Business
Section
•
those
of its
Paragraph
information,
are
Occasionally, this
are
of
year
statement
filing
on
ment
prospectus
months,
13
as
11(d)(1)
objective.
extension
six
Schedule A to the Act, a registra¬
of time after the ef¬
recognition
Section
is¬
most
date
of
the
registration
statement, the present one-year
period is unnecessarily long.
It has
such
of
information
one
fective
?
exception
tus
as
Also Section 3 of the bill would
Section 2(10) (b)
of the
shortly
very
has
Investors.
amend
or
though the one-year period
expired, to use the prospec¬
Date
herring" prospectuses (generally
•containing all required informa¬
or¬
even
and
"red
offering.
offerings
the distribution must continue,
met.
authorize
contain
exemption provides, in effect, that
any dealer who is a
participant
Months
bill
the
thereafter.
dethat the filing require¬
have
se¬
after
the
law
effective
comes
"ficient
The
excep¬
dinarily commence on the same
day the registration statement be¬
tuses
ments
first
year
of
present
•Commission finds that it is
or
one
commencement
therefore;
accomplish this
necessary
the
of
is
that
any
dealer,
even
though only casually trading in
the
security
(as
distinguished
from
being a participant in the
distribution) must use the pros¬
pectus
in
connection
with
all
writers
In
expiration
tion
tracts; of sale before the informa¬
tration
re¬
5, subject
exceptions.
The
communication
concerning new issues by remov¬
ing the present prohibition against
offers during the waiting period.
Written offers during this period
will
to two
Section
of
dissem-i transactions in the registered
xnate information
sues
quirements
13 months
effective date.
within
a
ing this so-called waiting period
by making it unlawful to sell
prior to the effective date of the
registration statement.
Under
effective
10(b)(1) of the Act, however, re¬
quires that a prospectus used after
cial
Use of Prospectuses After the
Effective Date of a Registra¬
(2)
date
bat
the
continue to be
the
on
used for
be
may
after such
give the Commission lati¬
quate information concerning the
would
'I
date
permit pre-effective and
expanded use of the "tombstone'
be sold to the
to
statement
this
At
pro¬
a
spectus in the form in which it ap¬
peared as a part of the registra¬
tion
;5uers
Act
present
Section
to
months after the effective date.
..
of
the
and
the
which
cable
Section
of
retain
requirements
dealers
to
in
is set forth
version
would
prospectus
the
difference
thereon, there
alternative
of
nature
trading
existing
,
appli¬
in
the
securities of invest¬
companies which are en-»
outstanding
ment
in
gaged
SEC.
section
continuous
402.
24
offerings:
Subsection
of
*the
(d)
,
of
Investment
Company Act of 1940 is amended
by
end
the following at the
fhereof: "The exemption pro¬
adding
vided
bv. the third
clause of sec-
Volume 179
Number 5296
The Commercial and Financial Chronicle
..
.
(591)
tion
4(1)
the
of
of
Securities
exercise
Act
shall not
any
transaction in a
security issued by a face-amount
certificate company or in a re¬
deemable security issued by an
1933,
apply to
management
open-end
investment
unit
or
one
amended,
as
after
year
statement
deemed
a
such
right
subscription
sale
of
of
con¬
shall
be
other
such
se¬
SEC.
2.
Paragraph
(8)
of
sec¬
"(8) The term 'registration state¬
ment'
filed
the
means
statement
amendment thereto
any
and
any
'
section
with
has
24
respect
become
such
to
effective
report, document, or memorandum
filed as part of such statement
if
security
a
other security of the same
class is currently
being offered
or
sold by the issuer or by or
through an underwriter in a dis¬
tribution
which
is
not
from section 5 of said
extent
such
to
such
SEC. 8.
ties
SEC. 3.
tion
Act, except
subject to
and
having due regard
for the public interest
and the
protection of investors, may pre¬
Commission,
respect
to
securities,
regulations with
(a)
The
full
text of Senator Cape-
,
83d
Bill is
prospectus
follows:
as
section
not
CONGRESS
is
2d Session
S. 2846
that prior to or at the
time with such communica¬
written prospectus meeting
a
registration state¬
a
to
as
security,
a
unlawful for
any
per¬
by
rules
public interest
of
of
for
or
of any means
use
"(2)
or
to
carried
means
in
or
by
commerce,
be
to
cause
any
instruments of trans¬
portation,
the
or
through the mails
or
lations
deemed
de¬
unlawful
for
the
or
livery after sale.
referred
and
to
Banking
on
to be
Currency
a
amend
the
certain
Securities
of
1933, as
amended, the Securities Exchange
Act of 1934, as amended, the Trust
Indenture
Act
Investment
of
1939,
cuted.
rules
I —AMENDMENTS
of
section
2
and
SEC. 4.
The
term
as
'sale'
therein,
such
be
permit."
as
may
may
Paragraph (11) of
sec¬
inserting the words
"offers or" before the word "sells."
SEC. 5.
follows:
tion 3
"(3)
conditions
is amended by
of
(3)
the Securities Act of
of
nec¬
tion 2 of the Securities Act of, 1933
Paragraph
1933 is amended to read
Commission, by
regulations, deemed
prescribed
TO
AS AMENDED
I.
the
as
in¬
other
such
investors, and subject to
terms
SECURITIES ACT OF 1933,
SECTION
or
contain
essary or appropriate in the pub¬
lic interest and for the protection
Representatives of, the
United States of America in Congress assembled,
of
TITLE
and
formation
Company Act of 1940.
Be it enacted by the Senate and
House
state the price thereof,
by whom orders will be exe¬
security,
state
the
and
prospectus if it states from
written prospectus meet¬
a
ing the requirements of section 10
may be obtained and, in addition,
does no more than identify the
provisions of
A_ct
circular,
shall
It
be
directly
section
of
purposes
Paragraph (11) of
sec¬
(a) of the Securities Act of
The
11.
indirectly— Commission may at any time issue
"(1) to make use of any means an order preventing or suspending
the use of a prospectus permitted
or instruments of transportation
or
communication in interstate under this subsection (b), if it has
any person,
commerce
or
the
of
or
mails
to
carry or transmit any prospec¬
tus relating to any security with
which
statement
registration
a
has been filed
10; or
"(2)
to
carry
or
to
cause
carried through the mails
interstate commerce any
be
or
in
such
security for the purpose of sale
or
for
delivery after sale, unless
accompanied
prospectus
or
that
preceded
by a
the re¬
meets
quirements of subsection (a) of
section 10.
in such para-
appear
^TrpT
T
trAt
^
/?Sn
nS
,.7' ;
301. (a) Paragraph (1) of
303 of the Trust Indenture
1939 is amended by de¬
the words "as hetetpfqre
amended."
,
SEC.
section
Act of
leting
,
reason
to
believe
that
spects has not been
quired to
be filed
such
filed
make
use
ments
part of the
registration statement) or includes
as
of
of the
offer
to
circumstances
,under
prospectus is
misleading.
order
Upon issuance of an
under
this
Commission
the
mails to
offer to sell
through the
use
the
subsection,
shall
give
such
of
issuance
the
notice ot
and
order
to
«(2) The terms 'sale,' 'sell,' 'offer
sell,' 'offer for sale,' and 'offer'
sha]1
include
aU
transactions
in¬
ciuded in sueh terms
in paragraph
(3)
as provided
of section^ of
the Securities Act of 1933,
except
an offer or sale of a
certificate
that
0f
interest
be deemed
security
or
an
participation shall
offer
sale-of the
or
or securities in which such
certificate evidences
participation
interest
an
if and
or
only if such
certificate gives the holder thereof
the
right to convert the:
such
security
same into
securities#-,<»■
(c) Paragraph (3) of section303
.
or
of the Trust Indenture Act,
ofri939
for hearing by per- is amended to read as
follows?,
or
the sending of
(irrt\
mu„
confirmed telegraphic notice. The *
^ Pro?PectuS#hall
opportunity
sonal
service
£
Commission shall vacate
cause
or
prior to the effective
registration statement
if
or
'l(/
.
(c)
has
prospectus
amended
such
in
accord-
order.
A
,
,
,,
Any prospectus shall
con-
the
as
Commission may by rules or regulations require as being necessary
or
appropriate
the
in
for
or
the
public
in-
ol
piotection
investors.
"(d) In the exercise of its
under subsections
ers
(c),
the
pow-
(a), (b), or
shall have
Commission
.J 1?e^ng
f.
SU
fecZ
^
i
9
J■Securities Abt of
-f.uA ln
+?s
are not r^gistc^ed
under the Securities Act'of
1Q„„
'
,
tain such other information
terest
.
mod-
or
time for good
any
such
or
with
ance
or
as to such
security, or while the
registration statement is the sub¬
ject of a refusal order or stop
or
such
which
is to be used not
or
been filed
com¬
or
commerce
istration statement has been filed
order,
material
therein
to make the stalements therein, in the hght ot the
necessary
transportation
medium of any prospectus or oth¬
erwise any security, unless a reg¬
date of
fact required to be stated
ify the order at
buy
materia
a
omits to state any
or indirectly, to
of any means or instru¬
munication in interstate
or
any
directly
person,
pro-
(if re-
(b) Paragraph (2) of section 303
of the Trust Indenture Act of 1939
is amended to read as follows* >
„
"(c) It shall be unlawful for
'sell'
or
TO
.
"(b)
letter of communication in respect
of a security shall not be deemed
twice
Committee
com¬
(b) a
advertisement,
where they
ap-
for
of sale
read
notice,
given
the
and
or
otherwise
or
made
was
use
necessary
tion
to whom
person
the
propriate in the public interest or
for
the
protection
of investors
munication
the
AMENDMENTS
purposes
shall, except to the extent
by rules or regu-
Capehart introduced the
following bill; which was
to
the
provides, be filed as
part of the registration statement
but shall not be deemed a part of
such
registration statement
for
such security for
any
purpose
section
Mr.
or
—
the
.
the Commission
carry
interstate
a
January 27 (legislative day,
January 22), 1954
sent
in
the
permit
prospectus for the
or
was
II
"sale"rr in
thereof,
SEC. 201. Paragraph (d) of seett°n 11 of the Securities Exchange
Act of 1934 is amended by strikprotec- *nS out the words "six months"
investors
untrue statement of
of section
word
deemed
appropriate
or
the
sentence
SEoFRlIq?4]S^^I^Mn^nCT
1934, AS AMENDED
prospec-
regulations
or
necessary
tion
indirectly—
or
before
tus permitted or required in subsection (a), the Commission shall
fact
To
.
to
any
THE
A BILL
.
amended
investors.
under
OF
STATES
whom
-
prospectus if it
a
TITLE
of
"(b) In addition to the
this title, unless such prospectus
meets the requirements of sec¬
SENATE
and
<
sub¬
shall
10)
tion
respect to
the
r
under
section
proved
same
"
-
of
second
communication
THE
UNITED
i
given
appropriate in the
public interest or for the protec¬
or
the requirements of subsection (a)
10 at the time of such
IN
'
permitted
(b)
be deemed
tion
-
or
after the effective date of the
reg¬
istration statement (other than a
*
is
any prospectus or
'prospectus'
any prospectus, notice, cir¬
communication sent
a
be
otherwise;
term
security for sale or confirms the
sale of any security;
except that
by inserting the words "offer or"
essary
by
or
mission may by rules or regulations designate as not being nec-
graph and inserting iri lieu thereof
of subsection (b) (1) of section 5 the words "thirty days."
or instruments of
transportation
which omits in part or summarizes
SEC. 202. The last sentence of
or
communication in interstate
information
in
the
prospectus paragraph (d) of section 12 of the
commerce or of the mails to sell
such security through the use specified in subsection (a). A pro- Securities Exchange' Act of 1934
spectus permitted under this sub- is hereby repealed.' 'J":/
y
or medium of
of
advertisement, letter, or
communication, written or by ra¬
dio or television, which offers any
class of persons,
transactions."
1933
"(1) to make
follows;
The
of
directly
son,
sec¬
Act
to
follows:
as
it shall
-
Text of Capehart Bill
hart's
Securities
cular,
any
or
the
an
"(a) Unless
ref¬
by
the issuer
underwriter."
ment is in effect
amended, is amended to
as
"(10)
means
scribe by rules or
therein
Paragraph (10) of
of
as
read
the
as
2
1933,
allotment
Section 5 of the Securi¬
Act
read
erence."
exempted
conditions
and
terms
incorporated
or
through
or
'
any
unsold
an
subscription by such dealer as
participant in the distribution of
or
pro¬
vided for in section 6, and includes
pursuant to subsection (e) of this
part of
a
such securities by
tion 2 of the Securities Act of 1933
is amended to read as follows;
company
amendment
or
or
curity."
trust, within
registration
a
of
version
27
1933,
such
term
shall
not
inctuden^
communication (A) if it is proved
that prior to or at the sairie time
with such communication'a written
statement if any required
by
306 was sent or giveh to
the persons to whom the communication was made, or
section
(B) 4f such
communication states from whom
statement maybe obtained
such
1933, as amended, is amended by any public proceeding or exami¬
of
authority to classify prospectuses and, in addition, does no i more
inserting the words "offered and" nation, under section 8."
security or before the word "sold."
SEC. 9. Section 10 of the Secu¬ according to the nature and cir- than identify the security,: state
interest in a security, for value.
cumstances of their use or
the the price
SEC. 6.
Subsection (b)-of sec¬ rities Act of 1933, as
thereof, and state by
The term 'offer to sell,' 'offer for
amended, is
nature of the security, issue, issuer, whom orders
tion
will be executed and
3 of
the Securities Act of amended to read as follows:
1
sale,' or 'offer' shall include every
or
otherwise,
and,
by
rules
and
contain
such
other information as
1933, as amended, is amended by
attempt or offer to dispose of, or
"(a) Except to the extent other¬ regulations and subject to such the
Commission^ by rules or regusolicitation of an offer to buy, a striking out "$300,000" where it wise permitted or required pur¬
terms and conditions as it shall lations deemed
appears in such subsection and in¬ suant to this subsection
necessary oitrapor
sub¬
security or interest in a security,
specify therein, to prescribe as to propriate in the public interest or
-for vaiue.
The terms defined in serting in lieu thereof "$500,000." sections' (c), (d), or (e)—
each class the form and contents for the
SEC. 7.
Section 4 (1) of the
protection ofi ^investors,
this paragraph and the term 'offer
"(1) a prospectus relating to which it may find appropriate and subject to such -, terms and
Securities Act of 1933, as amended,
J to
buy' as used in subsection (c)
a security other than a
is amended to read as follows:
security and consistent with the public conditions as may i be prescribed
of section 5 shall not include pre¬
and
the
protection
of therein, may permit."
issued by a foreign government interest
"SEC. 4. The provisions of sec¬
liminary negotiations or agree¬
investors.
or political subdivision
(d) Paragraph (4) of section303
thereof,
tion
5
shall
not
ments between an issuer (or any
apply to any of
shall
contain
the
information
"(e) The statements or infor- ?f the Trust Indenture Act of 1939
?
the following transactions:
person directly or indirectly concontained
in
the
registration mation required to be included in Is amended by inserting the words
*
trolling or controlled by an issuer,
"(1) Transactions by any person
statement, but it need not in¬ a prospectus by or under author- "offers or" before the word "sells."
or under direct or indirect corn- other than-an
issuer^ underwriter,
clude the documents referred to ity of subsections (a), (b), (c), or
SEC. 302. Subsection (b) of
mon control with an issuer)
and or dealer; transactions by afr is¬
in paragraphs (28) to (32), in¬ (d), when written, shall be placed section 304 of the Trust Indenture
; any underwriter or among undersuer not involving any public of¬
in
a
clusive, of schedule A;
conspicuous part of the pro- Act of 1939 is amended? by de: writers who are or are to be in
fering; or transactions by a dealer
"(2) a prospectus relating to spectus and, except as otherwise leting the words "asu heretofore
;
privity of contract with an issuer (including an underwriter no
a
' y01 o • '■>
security issued by a foreign permitted by rules or regulations, amended."
(or any person directly or indi- longer acting as an underwriter
in type as large as that used generSEC. 303.
Subsectioh J (c)1 of
government or political subdi¬
rectly controlling or controlled by in respect of the security involved
ally
in
the
vision thereof shall contain the
body of the prospectus, section 305 of the Trust Indenture
ap issuer, or under direct or in- in such transaction), except trans¬
information
contained
in
the
"(f) In any case where a pro1939 is amended to read as
direct common control with an actions taking place prior to the
registration statement, but it spectus consists of a radio or tele- *°hows:
issuer).
Any security given or expiration of forty days after the
need not include the documents vision
broadcast, copies thereof
tc) A prospectus relating to
delivered with, or as a bonus on first date upon which the security
referred to in paragraphs (13) shall be filed with the Commisaccount of, any purchase of secu¬ was bona fide offered to the pub¬
su^ ®ec.V
include to
and (14) of schedule B;
sion under such rules and regulaCommission may
rities or any other thing, shall be lic by the issuer or by or through
tions as it shall prescribe.
The Prescnbe by rules and regulations
"(3) notwithstanding the pro¬
conclusively presumed to consti¬ an underwriter and transactions in
*
shall
sale
include
or
contract
every
disposition of
a
'
*
-
"
v
'
-
'
-
*
*
-
-
,
r
,
tute
.
a part of the subject of such
purchase and to have been offered
and
-
sold
transfer
for
of
value.
The
issue
or
right i or privilege,
originally issued or trans¬
ferred with a security, giving the
holder of such security the right
to convert such security into another security of the same issuer
a
when
-
,
.
,
.
-
t
.
or
of
another person,
giving
or
right to subscribe to another
a
se-
curity
of the same issuer or of
another person, which right cannot be exercised until some future
date,
an
shall
offer
or
not
be
deemed
to
sale of such other
be
se-
a
security
as
to which
registra¬
a
tion statement has been filed tak¬
ing place prior to the expiration
of forty days after the effective
date of such registration statement
or
prior to the expiration of forty
after the first date upon
days
which the security was
offered
suer
or
writer
to
the
by
or
after
whichever
is
public
through
such
bona fide
by
an
the
is¬
under¬
effective
date,
later
(excluding in
the
computation
of
such forty
days any time during which a
stop order issued under section 8
is
in
effect
as
to
the
security),
"
curity;
of
such
but
the
other
issue
or
security
transfer
upon
the
and
except transactions
curities
as
to se¬
constituting the whole or
visions
of paragraphs (1) and
(2) of this subsection (a) when
a
prospectus is used
more
nine months after the
date
of
the
than
effective
registration
state¬
ment, the information contained
therein shall be
more
to
of
as
a
date not
than sixteen months prior
such
use,
so
far
as
formation is known to the
of
such
prospectus
furnished
by such
or
user
unreasonable effort
or
in¬
such
user
can
be
without
expense;
or
may
by rules and
regulations require the filing with
it of forms and prospectuses
in
connection
with
the
used
offer
or
sale of securities registered under
this title "
er^
?•
-,'n
a
o1
*
*•
io
?Ci
cunties Act of 1933
inserting
the
•
is
*u
o
^A"
amended by
words
before the word
r
sells
''offers
in
or
clauses
(1) and (2) thereof.
SEC.
11.
Section
17
(a)
of the
Securities Act of 1933 is amended
by inserting the words "offer or"
"(4)
there
may
be
omitted
from any prospectus any of the
information required under this
subsection (a) which the Com¬
necessary and appropriate in
Commission
before
the
word
"sale"
in
the
introductory clause thereof.
SEC.
12.
Section
22
(a)
of the
Securities Act of 1933 is amended
the public interest or for the protection of investors, as though
SUCJ? in!rJ.usl-°JV w£re r?.9mr A ^
^l10n
Sj the Securities Act of
' a written statement contain¬
inS the analysis set forth in the
registration statement, of any in-
denture
provisions
with
respect
in para_
graph (2) of subsection (a) of this
section, together with a suppleto
the
matters specified
mentary analysis, prepared by the
Commission, of such provisions
and of the effect thereof, if, in the
opinion of the Commission, the
inclusion
of
such
supplementary
Continupd
on
nnno
?R
conunuea on page da
r
The Commercial and Financial Chronicle
28
i
rity issued by
27
Continued from page
^analysis is necessary or appropri¬
ate in the public interest or for
■Commission
the
investors, and
Ithe protection of
declares by order
so
by
the issuer, opportunity for hear¬
ing thereon. Such order shall be
•entered prior to the effective date
■of registration, except that if opijportunity for hearing thereon is
•demanded by the issuer such order
and, if demanded
&fter notice
itf&all be entered within a reason¬
opportunity
after such
time
able
.£or hearing."
'
:
In the case of
(a)
"SEC. 306.
wany security which is not
tered under the Securities
regis¬
Act of
324 of the
of 1939 is
deleting the words
Act
Indenture
amended
of 1933 from the latest
by
"issuing or selling" and inserting
in lieu thereof the words "offer¬
IV
TITLE
AMENDMENTS TO
COMPANY
—
INVESTMENT
SEC. 401.
Section 2 (a)
Company
Investment
the
1940
OF
ACT
1940 is amended to
read
as
(30) of
Act of
follows:
used in
22, means a written pro¬
spectus intended to meet the re¬
quirements of section 10 (a) of
'Prospectus,'
as
section
Increased Income
Net for last half of 1953
reported
as
$10,122,649, compared with
$7,639,743 for same period a
year
indenture
an
application for qualifica¬
tion is effective as to such inden¬
mand
an
ture, it shall be unlawful for any
directly or indirectly—
gnerson,
^(1) to make use of any means
40r instruments of transportation
■or communication in
interstate
commerce or of the mails to sell
i
interstate
by
any
indenture
to which
as
an
ap¬
Subsection
Act of 1940 is amended by
adding the following at the end
thereof: "The exemption provided
pany
by the third clause of section 4(1)
of the Securities Act of 1933, as
amended, shall not apply to any
transaction in a security issued by
a face-amount certificate company
oh in
redeemable security issued
a
in
underwriter
an
a
distribution
ported
net income of $10,122,649
a
month
six
the
communication
■commerce
carry
„
the
of
or
transmit
or
interstate
in
mails
tus
relating to any such security, unless such prospectus, to
i
the extent the Commission may
prescribe by rules and regulations as necessary and appropri-
1.
.ate in the public interest or for
.
the
protection of investors, in¬
cludes or is accompanied by a
written
the
/
that contains
statement
information
specified
in
subsection (c) of section 305; or
"(2) to carry or to cause to
l>e carried through the mails or
in interstate
such
.security for the purpose of sale
or for delivery after sale, unless,
to
the
commerce any
extent
Commission
the
may prescribe by rules and reg¬
ulations as necessary or appro¬
priate in the public interest or
for the protection of investors,
accompanied
written
preceded by
or
statement
a
contains
that
the information specified in sub¬
section (c) of section 305.
"(c) It shall be unlawful for
any
person, directly or indirectly, to
jmake use of any means or instru¬
ments
of
transportation
munication in interstate
*or
of
the
mails
through the
prospectus
to
use or
or
or
com¬
commerce
offer
to
sell
medium of any
otherwise any
secu-
jrity which 'is not registered under
the Securities Act of 1933 and to
which this subsection is applicable
jaotwithstanding the provisions of
jsection
304,
jhas been
jw
or
unless
such
security
is to be issued under
indenture
and
an
application
fEor qualification has been filed as
rto such
indenture, or while the
application
is
the
subject of a
^refusal
order or stop order, or
jprior to qualification any public
.proceeding
section
307
or
examination, under
(c)."
"(e)
to
prospec¬
any
follows:
by
a
registration
A
under the Securities
ment
1933
(1)
state¬
Act
of
relating to a security issued
face-amount certificate com¬
pany
or
a
redeemable
issued by an open-end
ment company or
unit investment
trust may be amended after its
effective date so as to increase the
securities
specified therein
as pro¬
period ended
World approximating 116,000,000,000 barrels. There is little
question in their minds that at least
half of this total is accounted for
a
by the Middle East
will
income
was
Supplemental
Losses
on
636,160.
against
Reserve
and Guarantees,
Loans
raised
and
placed in the
the
Reserve
probably raise ithe Middle
portion to near two-thirds.
East
ment under
filing
of
such
an
a registration state¬
the Securities Act of
shall not be deemed to have
1933
taken
it is accom¬
panied by a United States postal
money order or a certified bank
place
check
or
unless
for the
cash
amount
of
the fee required under paragraph
shaft have become ef¬
fective.
For
tion
13
of
1933,
as
the purposes of sec¬
the
Securities
amended,
no
Act
of
such security
shall be deemed to have been bona
fide offered to the public prior to
the
effective
date
of
the
vides
by rules
or
regulations
as
appropriate in the public interest
or for the protection
of investors,
no prospectus
relating to a secu¬
years
In
ago.
other
eight
war
words,
were
$129,436,230.
times
greater than the rate of increase
the
in
other
large
Middle
East
Oil
Region
is
and
being pro¬
duced
are
Iraq, Iran,
Kuwait,
SaudL Arabia
and
Qatar.
For
those of you who are not familiar
with
now
Middle
East
geography I
that Kuwait is a mod¬
compared with $20,696,715 for the
erate-sized sheikdom lying on the
corresponding period in 1952.
1968;
due July 1,
3 Vz %
Swiss franc 50 million
15-year bonds, due Dec. 1, 1968.
the
During
the
Bank
six
18
made
month
period,
loans totaling
$190,392,000 in Brazil, Chile, Co¬
lombia,
Iceland,
Italy,
Japan,
Nicaragua, Panama, Turkey and
the Union of South Africa.
These
loans increased total loans signed
the
Bank
to
Disbursements
$133,043,619,
bursements
on
$1,781,158,464.
loans
bringing
total
were
dis¬
to
$1,236,304,734.
principal were
received from borrowers as due;
Repayments
sold
or
of
agreed to sell to private
and
$5,072,697 with its guarantee.
31, 1953, these transac¬
tions brought total sales of ef¬
fective loans to $84,053,038; $29,177,194 of these sales were made
At
Dec.
without
the
bank's guarantee.
Sprague & Nammack Admit
Open New Branch
POUGHKEEPSIE, N. Y.—Cady,
say
northwest
Gulf
edge
with
Saudi
of
Arabia
the
to
of
peninsula
farther
and
Persian
south.
Qatar
is
south
immediately
Middle East Oil and
a day with the three con¬
tributing fairly equal shares. As
you know, production in Iran has
practically suspended
duction
from
Iran
almost
was
equal in volume to the current pro¬
duction from either Iraq, Kuwait
Saudi Arabia.
barrels
other
the
a
Production from
currently
countries
in
oil
Middle
East, we
get a clear under¬
standing of the geographical loca¬
the important consuming mar¬
to
the world
of
kets
likewise
and
understanding
an
of
Geographically the Middle East is
as a source of supply for
the countries and the huge popu¬
lations which lie east of Suez and
south
in
and
Africa.
east
of
All
familiar with the magni¬
tude and importance of India, the
you are
African
South
complex of
coun¬
Indonesia,
China,
Japan,
the Philippines and Australasia.
Though there are substantial vol¬
tries,
has
oil in
of
umes
recently
Indonesia
oil
and
in
discovered
been
Australia, the maximum produc¬
these
from
tion
is
sources
Far
Eastern
inadequate
totally
to
hundreds of millions
people in the Orient and so the
supply the
of
about
but be¬
greater
development
it constitutes
a
very
important
oil
market.
Though geographi¬
cally the Middle East is nearly
as far away from much of West¬
ern
Europe as is the great oil
producing area of the Gulf of
Mexico and Caribbean, there are
than
of
cause
the
its
of
state
Orient
relatively
industrial
compelling
reasons
the Middle
East has very largely
principal countries. Despite
large reserves and pro¬
very
duction
supply for them.
Western Europe contains fewer
85,000
the
in
Middle
East,
ex¬
will
and
shortly
displace
pletely
why oil frqm
almost
com¬
Hemi¬
Western
sphere oil in the European mar¬
ploration for oil in the region has
ket.
been
true of some of the markets which
quite limited and it is rea¬
to expect that the large
still unexplored will ulti¬
sonable
area
mately
a
prove
to be productive of
substantial volume
Coming
of
the
to
now
oil.
is the effect
which
is, of
economic
East
the countries from
is
produced—that
course, very
profound. Prior
the
to
on
oil
this
areas
in these
they had relatively simple
discovery
modest
tically
no
and
ment,
ternational
which
now
operations
with
commerce,
very
prac¬
industrial
develop¬
an
insignificant in¬
The
trade.
accrue
nations
Eastern
oil
economies
internal
&ttle
of
revenues
to these Middle
from
their
oil
large in rela¬
prior
to the development of the oil in¬
tion to
are very
their total
revenues
dustry and already the effect of
this wealth is readily discernible.
It seems reasonable to expect that
economic
development
and
an
will
pro¬
increasingly rapid rate
within
that
another
decade
two these nations will be com¬
nations
of
the
as the
world
economies during
the earlier
part of the 20th. Among the more
their
changed
the
19th Century and
informed
East
circles
peoples
awareness
land Street.
and
it
is
the
of
there
is
an
Middle
acute
of this coming change
haying
its
lie
effect
po¬
This
will
be
partially
western coast of
though not
which
and
the moment are likely
rapidly.
One of these
at
large
also
the
along
Africa
to
oil, per¬
haps the first thing to point out
of Middle
aspects
business from offices at 1901 Gar¬
j
the
first
should
day, much less than in the
is
Western
Leonard
securities
since
Prior to that date pro¬
mid-1951.
Qatar
East
of
outside
people
aggregates about 2,300,000
barrels
pletely transformed much
a
appraise the economic effect
Middle
Middle East is an essential source
ment of John L.
—
To
of
Arabia
or
Consuming
Markets
of oil
been
well.
as
Currently the production of oil
from
Iraq, Kuwait and
Saudi
or
LAKEWOOD, Colo.
Saudi
Arabia.
have opened a branch office at 2
Cannon Street under the manage¬
In Securities Business
Gulf
of
east
ceed at
(Special -to The Financial Chronicle)
the
on
Roberts & Company, members of
the New York Stock Exchange,
Mayhew.
The
small
a
the Persian
side of
western
the
Iraq to the north and
sheikdom
and
Kinsell is engaging in
rels
dominant
might
and
awakening
the trans¬
oil-producing portation medi a .available for
moving the oil to these markets.
countries.
The
many
income, exclusive of loan
commissions,
was
$23,930,935,
Gross
15-year bonds,
These countries are now
to
their
important
position in the world, they are
becoming increasingly conscious
of their sovereignty and they do
not propose to be imposed upon.
Perhaps
more
important
they
want their economic development
to
be just as rapid as possible
which means that they seek from
their oil the greatest possible rev¬
enue not only in dollars and cents
per barrel but in number of bar¬
litically.
the tion of the Middle E'ast in relation
covered
latest
amendment filed pursuant to this
subsection.
Except to the extent
the
Commission
otherwise pro¬
was
increasing that Reserve to
$42,800,070.
Total reserves on Dec. 31, 1953
serve,
of the
amendment
just at the end of the
of
never¬
The principal Middle East coun¬
tries in which oil has been dis¬
Jerome W. Nammack, Jr., will
(1) of this subsection.
"(3) For the purposes of section acquire a membership in the New
11 of the Securities Act of 1933, as York Stock Exchange and on Feb.
will
become
a
partner
in
amended, the effective date of the 11
latest amendment filed pursuant Sprague & Nammack, 39 Broad¬
to
this
subsection
or
otherwise way, New York City, members of
shall be deemed the effective date the New York Stock Exchange.
registration statement with
respect to securities sold after such
one-fifth
supply,
$5,563,593 and were
credited to the Bank's Special Re¬
to
Act, with respect to the additional investors $14,038,384 principal
securities therein proposed to be amounts of its loans, this included
offered.
$8,965,687 without its guarantee
The
about
World
theless it is four-fold what it
commissions
Loan
amounted
During the period, the bank also
"(2)
only
$86,-
to
a
amendment to
years
production has been
This
shall
be paid to the Commission
fee, calculated in the manner
specified in section 6 (b) of said
Re¬
reserves.
appraisals- in the next few
riod in 1952.
'they
totaled
$2,042,684
and
brought
total
principal
repay¬
ments to $14,710,994 on Dec. 31.
posed to be offered. At the time
of filing such amendment there
Petroleum
area.
rate of increase in Middle East oil
security by
manage¬
ac¬
31, 1953, compared with $7,639,743 for a corresponding pe¬
sec¬
transactions."
more
Free
is
402.
view of crude
much
a
portance of this
Free
SEC.
get
curate picture of the relative im¬
tries
plication for qualification is effec¬
SEC.
403.
Section 24 of the
tive, it shall be unlawful for any
Investment Company Act of 1940
person, directly or indirectly—
is amended by adding at the end
"(1) to make use of any means
thereof a new subsection (e) as
or instruments of transportation
or
point of
we
total
which is not exempted from
«n
the
reserves
oil
an
And while the current production
of oil from the Persian Gulf coun¬
previous.
Ex¬
means or instruments of transpenses totaled $13,808,286, includ¬
tion
5 of said Act, except to such
i
iwrtation, any such security for
ing $2,926,889 of administrative
extent and subject to such terms
the purpose of sale o"r for de¬
expenses, $9,158,640 of bond inter¬
and conditions as the Commission,
livery after sale.
est, and $1,722,757 of bond issu¬
having due regard for the public ance and other financial expenses.
^{b) In the case of any security interest and the
protection of in¬ The bonds issued during the six
nwhich is not registered under the
vestors, may prescribe by rules or month period were: $75 million
Securities Act of 1933, but which
regulations with respect to any 3% three-year bonds, due Oct. 1,
*has been or is to be issued under
class
of
persons,
securities, or 1956; Swiss franc 50 million 3%%
commerce,
from
as
look at the Middle East
we
The International Bank for Re¬
through
security
If
construction and Development re¬
the use by an open-end management com¬
or medium of any prospectus or
pany or unit investment trust; if
any other security of the same
therwise; or
class is currently being offered or
*(2) to carry or .cause to be
sold by the issuer or by or through
oar^ied through the mails or in
.such
of the Middle East
area.
As used elsewhere,
Dec.
under
an
World Bank Reports
for
issued
of
part
as
the
to
ance
engineers estimate that there are
proved crude reserves in all of the
(d) of
section 24 of the Investment Com¬
tio 1>e
section
the Securities Act of 1933 and cur¬
rently in use.
Threat
a
To Domestic
prospectus
registration
under said Act and such
statement
1933."
less
filed
unless
10
amendment
the
this subsec¬
notwithstanding
provisions of section 304, un¬
such security has been or is
which
to
page
a
amendment has become effective."
issuing."
ing, selling, or
as
requirements of said
the
tion is applicable
jand
from first
Is Middle East Oil
for
varies
part of the registration
statement shall be deemed to meet
filed
'prospectus' means a prospectus as
defined in the Securities Act of
1933
Continued
the purposes of subsection (a) (3)
of section 10 of the Securities Act
Section
305.
SEC.
Trust
which
trust
vestment
"(30)
Section 306 of the
Trust Indenture Act of 1939 is
amended to read as follows:
304.
SEC.
face-amount cer¬
a
redeemable
security issued by an open-end
management company or unit in¬
Amend Securities Acts
,
Thursday, February 4, 1954
.
tificate company or a
Bills Introduced to
•
..
(592)
grow
is that oil in the Western
reasons
Hemisphere is becoming increas¬
ingly essential to supply Western
Hemisphere needs. In fact taking
the long view there are strong
indications
that
the
W estern
Hemisphere will have to draw in¬
creasingly from the East to fully
meet its oil
of these
of
arises from con¬
dollars
of
ex¬
As you well
and large is
Europe
shorter
and
currency
problems.
by
change
know
requirements. Another
reasons
sideration
than
of
any
other currency.
The Western
most
area
from
area
Hemisphere is al¬
a
hard money
exclusively
dollar
or
rope.
and
which
so
to
a
difficult
Eu¬
supply
I don't want to suggest that
entirely a soft
the Middle East is
money
area—in fact it is far from
such.
Nevertheless the
being
Middle East countries
currencies
purposes
they
as
of
to
can
Europe can
umes
out
Europe
can use
for
the
many
good effect
dollars and so
buy substantial vol¬
just
as
use
from the Middle East with¬
having to pay in dollars.
The
third
great
area
of
con¬
sumption is of course the Western
Hemisphere and it may be that
Volume 179
Number 5296
.
.
The Commercial and Financial Chronicle
.
(593)
this
is
the
most
which
in
area
gentlemen
here
today
interested
when
about
Middle
nobody has questioned the
ment of Middle East oil
rope
peared
natural
move¬
into Eu¬
This has
the Orient.
or
the
thinking
Certainly
oil.
East
you
are
in
and
ap¬
fact
in¬
On the other hand there
evitable.
has been something of a
hue and
about the movement of Mid¬
cry
science
nor
precise
you
in
costs
high
posted
East
are
this
fairness
I
of
some
movement.
ought
this
the
has
into
of
applied
oil and
has
not
Middle
United
the
East
States
with almost
imports of
vehemence
all
that
exclusively against
movement
crude
In
too
say
agitation
directed
been
to
to
but
fuel oil from the Caribbean
United
lower
oils
were
Canada
of
into
sphere oil
into
get
Hemi¬
but confine
sources
my
Canada.
or
Western
the
West
financial
However,
considerable
the
to
this
(and for
Gulf
the
Middle
is
the
of Middle
oil
East
the
across
At¬
consuming
cific
the
place
oil
8,500
10,000
Gulf
Coast
away
from
Pa¬
of
area
is
miles
about
Texas
the
take
East
some
York,
miles from
I
being
as
New
importer.
East oil
Middle
convenience
available)
from
at
gain
the
movement
any
obviously that oil could flow
ports and still farther
the
Hemi¬
if the Middle East
so
which
affect
our
Coast.
We
commodities
to
sponse
ditions
ment
in
in
be
re¬
set of economic
a
which
make
such
con¬
move¬
profitable to those engaged
it.
the
only
can
This
of
means
that
course
thing being imported must be
available
its
at
at
price
enough so that when
of transportation is added
source
a
which is low
the cost
the
laid
than
down
the cost
will
cost
of
be
less
locally available
material.
which
F. O. B.
First
let
me
the
East oil.
f.
a
few
cost
of
say
b.
o.
words
While it is true that with
the
very large flowing wells of
the Middle East the so-called lift¬
ing
cost
is
low
very
there
are
other costs peculiar to
many
Middle
costs
which
East
make
relatively high.
An oil
erator
exploring for and, if
cessful, developing an oil
cession
in
any
the
total
op¬
suc¬
con¬
of these Mid¬
one
dle East countries
has
provide
everything
virtually
which
is
beings
has
required
to
live.
had
to
had to
by
For
human
example,
provide
water,
he
the
utilities, a communication system,
and
a
large part of all of the
housing,
in
producing
addition to the oil
facilities
themselves.
In addition
to
build
to
fleets
operate
hospitals,
so,
he
must,
tremendous
of
of course, maintain
supplies of all forms
material
and
commissaries
where
available
general
stores
employees can acquire
day to day goods they need.
the
In
make
and
his
the
aggregate
tures
for
may
well
has to
what
be
these
expendi¬
call
amenities
we
equal
the
which
sum
in the oil
invested
pro¬
ducing facilities themselves.
Nat¬
ha^
urally all of this investment
to
serviced
be
ciation
and
stitutes
an
through
otherwise,
depre¬
and
important cost.
Earlier I referred to the
ness
of
the
their
to the
as
oil
concessions
first
the
to
the
Although
many
were
payments
in
importance
revenues.
when
ago
years
aware¬
governments
Middle East
of
con¬
of
these
negotiated,
governments
relatively
were
been
a
very
increase
in
small, there has
rapid and important
these
during
recent
years
so
that today practically
all of these governments obtain
50%
some
of
the
called
to
a
the
overall
profit
venture, and this so"government take" comes
very
cents
of
oil
per
duced.
various
substantial
barrel
Because
on
number
the
oil
conditions
concession
areas
of
pro¬
in the
differ
somewhat and also because book¬
keeping
is -neither
an
exact
when all tankers
the
Allied
taken
were
merchant
by
over
gov¬
time Commission established what
known
U.
as
S.
freight rates. These
signed to enable
that
of
rates
and
moved.
got
after
standard
were
all
to
the
on
cargoes
People in the oil business
after the
and despite
to quote
or
centage.
of how
to
private operation,
minus an appropriate per¬
To give you some idea
tanker freight rates have
the
since
I
war
may
oil
demands
went
Of
250%.
were
U.
to
the
S.
in
freight
C. plus
high
very
M.
these high rates
course
stimulated
building
of
lot
a
tankers, so much so that
some over-supply of
new
there is
vessels and
down
competition has forced
to the present level
C.
Applying this maxi¬
U.
approximately
minus
50%.
oil
crude
of
S.
M.
minimum to the move¬
and
ment
Gulf
sian
M.
C.
M.
C.
flat
is
the
out
present
differential.
of
tankers,
it
with
much
more
may
of the fears voiced by
some
do
to
the
on
and
the
question
It has
of
how
Middle East oil could
to
say
Philadelphia
employed.
have
We
not
are
world
tanker
rently laid
tonnage is
This
up.
5%,
of
cur¬
if
put
in the Persian Gulf-North Atlantic
seaboard
trade, could move about
175,000 barrels
Moreover, as a
oil
of
day.
per
practical
this small
even
matter,,
in crude
increase
ped
with
the
sing facilities needed to
Middle East crudes.
175,000 barrels
rent
United States
figure of
with
cur¬
imports
into
the
all
from
650,000
crude and
This
compares
average
about
the
run
of
sources
barrels
of
day
a
roughly 400,000 barrels
daily of residual fuel oil. My
own
view is that the present situation
is
definitely
spot situation and
a
which will not long continue.
one
potential oil
tempting to cover
importer
Any
tion
for
ahead
would
transporta¬
on
little
as
five
as
years
himself
find
at¬
than
the
would
rates
present
make
higher
that they
the
venture
unat¬
tractive.
we
from
the Per¬
New York
get a high
or
of
low of 86
readily see what
can
depressed tanker
rates, a barrel of, say, 33 gravity
Arabian oil priced at $1.97 at Ras
Tanura in the Persian Gulf, plus
freight of 86 cents at U. S. M. C.
minus
50 will
after paying the
l0y2c give the im¬
duty of
delivered price of $2.94.
some
C.
25
to
40
I.
F.
value
No
doubt
noticed
I
that
have
many
of
in
discussion
so
mention
of
my
made
pipelines
pipelines
not
are
the
on
play
to
years
different
real
no
factor.
a
and
come
economic
is
It
of
most
in
Middle
western
moment this
oil
ports
trend
required
but
toward
the
more
than
past,
leads
larger
and
tankers,
be
been
in
personally
to
fields
connect
ated
that
line
would
which
the
almost
an
have
be
to
situ¬
so
equally
to
reach the Persian
built
are
long
built
to
York.
as
this arithmetic sug¬
gests, however. Middle East crudes
differ considerably from
are
even
generally
when
difference
in
ference
quality
domestic
of
there
gravity.
no
which
have
you
in
exist
is
There
the
Eastern
the
Iraq
two
are
of this
systems
evaluate precisely but amounts to
few cents per
very
low
barrel.
freight
any
be
East.
of
result of the
a
potential
could
taken
In
this
very
which
of the
Middle
there
is
possibility that the
fields
production.
the
supplies
out
connection
the
course
Iranian
of
being severely
will
back
come
Curiously
on
enough
most of you
pipe¬
nature.
The
which
system
oil
from
day
a
i(i
Central
the
Iraq
to
the ports of Banias and Tripoli, in
Syria and Lebanon. The first line
Kirkuk
system
laid
was
and has been
many years ago
ex¬
panded in the postwar period. The
of Kirkuk
long pipeline is
oil
from
through
the
is such
field
that
a
whether
necessary
the
the
through
in
moves
out
Persian
Gulf
or
Eastern
Mediter¬
pipeline
sys¬
is
the
East
system referred to
Tapline.
This
con¬
one
diameter,
300,000 barrels of oil
from
the
Saudi
day
per
Arabian
Gulf to
Sidon
This
Tapline
as
out
Persian
of
fields
the
was
was
tanker
to
Tanura
When
the
on
line
expected to
$125,000,000
the basis of
Leba¬
system
Ras
Gulf.
projected it
about
in
alternate
an
movement
on
be
cannot
ade¬
quately fulfilled. I had some ex¬
perience with than kind of a situ¬
ation back in 1948 when
cold
winter
and
I don't want any
of
we
had
a
of
a
because
effected
movement.
build
to
that estimate
In
as
against tanker
real
life
$200,000,000
over
will
provide
against
a
the
at
line
which
long
normal
very
even
freights and is unattractive
related
to
the present
very
Believe it
not, it cost
us
to meet
customers'
our
importance of the
great today
the
past.
Middle
East
cipal
often
more
or
is at leash
area
it has
as
Not
does
dominate
East-West
been
ever
only
the
route
the
prin¬
by
sea
through the Red Sea and the Suez..
it
is
equally important
the
continent.
According to the best
judgment of our oil geologists and
engineers, half to two-thirds of
all
there
is
wonderful
in
Middle
this
the
East
which
fluence
world
of
of energy
source
region.
coming
The ine-
relative
World is
We
the-
on
positions of the states in
Russian orbit
the
in
events
Middle East will have
the
this
lies in
bound
hope,
be
greats
very
personally
I
and
the Freo
versus
to
feei
is
are
engaged
now
in
a
prove
ol
incalculable benefit to the Middle
countries
East
and
the
to
other
world.
of the
nations
free
or
millions of dollars
urgent de¬
So far
as
the
industry is concerned we have
struggling ever since /1948 to
some
and
Obviously the oil fields in
now.
the
margin of extra capacity,
have reached that position
we
Middle
that
whole
they
lot
could
systems,
000 barrels
oil
more
rently needed.
produce
a
capacity of these
is
than
a
cur¬
On the other hand
everybody in the business knows
that
has
such ability to overproduce
practically nothing to do with
the amount of oil that is
be
used.
The
world
going to
for
demand
& Co. Inc. and
offering today (Feb.
4) $5,265,000 Pennsylvania Rail¬
road 2%% equipment trust certi¬
Halsey,
increasing and shows
every indication of continuing to
increase, but the development is
going to be gradual and nothing is
going to happen over night to
jump it up 20, 30 or 40%. Whether
when
and
lor
the
back
come
Iranian
into
ficates,
point with
a
prediction
on
assurance
of
any
that
when
come
readily absorbed.
of that
if
and
idle for
some
two and
brought
approaching
up
to
full
yield
an¬
1.75%
from
2.90%,
to
issue
The
is
be
to
secured
by
the following new standard-guage
railroad
cost
equipment estimated to
33 Diesel-electric
$7,020,000:
switching locomotives; 300 covered
hopper
cars,
suance
of
ject
the
to
Is¬
and 20 box cars.
the
certificates
is
authorization
sub¬
of
the
Interstate Commerce Commission.
Associated
in
the
with
Halsey,
Stuart
offering are—Baxter, Wil¬
liams &
Co.; Freeman & Co.; Wm.
E. Pollock
& Co.,
Inc.; Gregory
Son
Inc.; McMaster Hutchinson &
Company.
Charles W. Wilkins Now
With
A
Wright
half years
to anything
capacity
for
months. Furthermore
the growth of Middle East oil in¬
is
Chronicle)
Minn. —Charles
AUSTIN,
Wilkins
property
Wright Wells Co.
(Special to The Financial
back it will
a
maturing
BB,
according to maturity.
I
Iranian
magnitude which has lain
cannot be
series
nually Feb. 1, 1955 to 1969 inclu¬
sive.
The certificates are priced
Personally, however,
accuracy.
be
will
are
is not
to say and I doubt if any¬
me
body could make
that
fields
production
Stuart
associates
oil has been
now
Wells
&
wixft
Company,
First
National Bank Building.
kins
President
was
W.
associated
of
Mr. Wil¬
the First
National Bank of Austin for many
years.
many, many
dustry
will
did
mind
production
constitute
factor
it
With
during those two and a
has been so great that
to
The
a
much
smaller
in the overall picture than
in 1951.
We must bear in
that
when
Iran
ST.
PAUL,
Savage
has
potential
shut
Highland
Financial
Chronicle)
Pioneer
countries
was
pushed
joined
Park
Building.
With Bache & Co.
very
rapidly.
This had to be done by using ex¬
approximating 800,-
pedients which though temporari¬
day, is far less than
ly effective
are
C.
the staff of
Investment Co.»
Minn.—Thomas
down,
production from the other Middle
East
Highland Park Inv-
(Special
years
hard and augmented very
low rates.
two
over
ferocity. The strategic
part of that kind
situation again.
a
the Iranian
when
fought
we
omies
tanker
been
with greater
development which will
half
it
Middle
concerns
that
would have provided a reasonably
attractive return from the econ¬
cost
it
as
customers
production does
and
time
some
highlights of the economic?
its
sian
the
you
is in an industry where sup¬
is short and the demands of
expect
built
brief
ply
lying along the shore of the Per¬
non.
the
given
if it
so
the
in
have
good reason to expect,
history will someday show
field
location
that
I
that
of
this
hope
there
barrels
of
positions.
financial people seem
to be happier abbut an investment
Kirkuk
The combined
rates
unlikely to continue for
large
con¬
East are sufficiently
prolific and sufficiently developed
pay-out
dif¬
as
be
may
through three lines of varying size
is capable of moving some 500,000
is
This
depressed
been
cost
is difficult to
possibility
markets
get
lower
no
the
world oil
Persian Gulf.
cost
Actually the im¬
at
here
oil
was
an
cerned
you
their
airlines operating between
the Orient and Europe or our own
Oil
East
Supplies
Many of
ex¬
Canal but
Gulf.
Middle
of
rapid
exaggeration.
The Middle East
has always been the crossroads of
the
world, and few areas have
to
Impact
less
Certainly the area is im¬
portant beyond any possibility of
in
dle Eeast oil available at
first
I
terranean
be
ton
period of
available
East oil.
have
only
mind
Summary
as
will
conces¬
not
consolidate
position
in
me
fields, most oF
would
pansion or even of remaining sta¬
tionary to give them a chance to
the
dheaply
they
a
be
can
reestablished
Iranian
areas
much
believe that pipelines to the Medi¬
Mediterranean ports instead of the
line
sion
The
hope that pipelines will
any
which
and
the operators in the other
of the
at
economic
more
of the
out
the
at
unlikely.
seems
production
any
rehabilitated
condi¬
available
areas
Mediterranean
present
East
Having in
anticipated growth
equal
to
tions additional pipelines could be
built so as to make all or at least
mands at that time.
of
porter does not have quite as big
seem
and
Middle East and which make Mid¬
cents less
equivalent gravity of domestic oil
These
oil
operation.
in demand for oil from the Middle*East is likely to be at last
shortage had difficulty in
supplying heating oil needs, and
The Pipelines
with the present
a
East
long-term
mind that the
tanker
some
quite
the
part
possible that in
faced
with freight rates so much
big pipe 30 inches in
with capacity to move
in
the economic
as
Middle
fore,
proces¬
sists of
quality,
So far
of
equip¬
were
specialized
as
and
has
world markets is
concerned, there¬
on
generally
oil
effect
future
the
Trans-Arabian
margin
there
moving by tankers
moving
Mediterranean pipeline
terminals.
built
important bearing these ship¬
cost figures have on this
business of importing Middle East
crude to the United States. Today,
a
months
oil
out of the
little
ping
New
recent
more
In
to the West than has been
pretty
an
at
in
been
dicate that something over 5%
Middle
the
fact
good figures on that and they in¬
the
You
is
areas
coupled with the fact that there is
tem
than
the
therefore
cents.
This
to
imported into the United States
second
a
fields
existing tankers which
now
The
S.
oil
be
ranean.
porter
East
in
$6.05 per barrel and a
U.
dle
lying west of the Suez Canal.
under
other point which I
one
purely domestic producers.
freight rates as IJ. S. M. C.
relation to available ships,
mum
dispel
the
that at the peak in 1948 when
of
S.
would like to make while
subject
the trade
say
rates
wipe
There is
far
fluctuated
of
S.
U.
barrel which would
per
over
was
war
became customary in
rates
cents
obviously
the fact that the ships
reverted
plus
its
During
taxes.
applied
rates that
it
86
U.
and
50
The
accustomed to using these
so
all
of
depreciation
yield to its
to
these rates
war
all
pay
reasonable return
a
tank¬
average
to
and
rates de¬
were
including
investment
the
C. tanker
M.
an
day
insurance
now
and
the cost
means
ernment, the United States Mari¬
housing he has had
schools and in many cases provide
churches. And after he has done
case
war
in
operated
and
Middle
con¬
costs,
During the
owners
about
to
in this
expenses
Cost of
Middle East Oil
leads
of transportation
shipping oil by tank steamship.
er
The
naturally
sideration
are
minus
between
the Atlantic seaboard
This
of
difference
investment.
and unless additional refineries
Transportation Costs
must
recognize that any
international movement of
the
on
the total movement from the Mid¬
imports could not be effected until
lantic into the West.
great
return
relatively small
prices for
posted
the
discussion to the economic factors
will
the
the Western Hemisphere mar¬
kets
Venezuela,
Western
other
or
not
about
Venezuela,
immediately adjacent to
where
shall
I
Middle
barrel than
per
as
the
in
sphere and
Middle
East
such
than
most
Persian
detail
the
appreciably length of time. Even
newer ships
now being built,
supertankers with roughly twice
the cargo capacity of their World
War II sisters, would have to get
something approaching U. S. M. C.
to pay all charges including de¬
preciation and earn a satisfactory
the
posted
tries, particularly Venezuela. As
my topic today is primarily the
much
the
realized
prices for Middle
East oil of equivalent quality are
equal
coun¬
in
oil
at
profits
higher
no
are
taking
loading
the
States
The
crude
particularly residual
more
of
b.
those normally to be expected
the Western Hemisphere op¬
are
in
prevent
give
o.
countries.
that
operators
erations
States,
Congress has
been deluged with suggestions as
to quotas and tariffs which would
know
these
so
price
the
by
of
points
dle East oil into the United
you
pro¬
f.
on
however, that they
enough
the
at
figures
any
I will say,
and
as
standardized
a
cedure I shall not attempt to
21?
not well suiteo to
Herbert R. Mann has
staff
of
Bache
&
Co.,
joined the
36
Wall
Street, New York City, members
of the New York Stock Exchange*
as
a
registered representative.
30
The Commercial and Financial Chronicle
(594)
for
A MUTUAL INVESTMENT FUND
share
Mutual Funds
national
of
outlook,
individuals.
January "Perspec¬
tive," issued by the investment
management department of Cal¬
vin
Bullock, comments that "it
FREE INFORMATION
FOLDER AND
PROSPECTUS
would
NATIONAL SECURITIES &
RESEARCH
CORPORATION
Ctlabliihed 1930
New York
120 Broadway, New York 5,
be unwise for the
govern¬
ment, at the sight of
a
to
program
unleash
vast
a
stimulating
the
science
of
has
reached
not
for
The
economy.
economic
the
programs
state
a
of
ac¬
course.
inflationary
are
and not to be undertaken
Many who fear
case
in
assets
while
is
the
During
"In the period
of sharpened com¬
petition that appears to lie ahead,
profit margins will be affected,
particularly
for marginal com¬
panies
would
the
circum¬
these
Under
created.
which
been
industries in
capacity
has
and
excessive
investor
prudent
to hold
prefer
some re¬
for
advantageous buying
serves
opportunities.
are
It
of search
Corporation,
said
today
that that the continued upward trend
and of National's sales in the past 12
notes
estimates
of
plant
expenditures for the months, "seem to prove again that
first quarter show only a nominal the average investor is far more
decline, these are, after all, esti¬ interested in income than daily
intentions
of
which
may
market fluctuations."
He
already have been changed by the
adverse
turn
of
business
last few months.
ONE
WALL
STREET
iCACVIN BUliLOCK
NEW YORK
GENTLEMEN: At
me
a
f;i.
no
obligation please send
prospectus on
/•
,
Canadian fund.
-
-
'
the
in
evidence
One must accept
bility of
ferred
1
Hame__
need
of
"A
public works
such
a
the $49,700,000
as
for.
the
"Another- encouraging factor is
the
absence
of
any
speculative
fever in
the economy. The num¬
sober
forecasts
have
at
erous
least been
salutary in dampening
speculative zeal.
Although con¬
sumer
and other private deht is
high, it does not appear that large
amounts of debt might have to be
liquidated in a hurry.
f
eystone
"Nor do
Custodian Funds
BOND, PKEFERRED AND
COMMON STOCK FUNDS
The
Keystone Company
Con^pess Street, Boston 9, Mass.
Please send
me
prospectuses describing
Organization and the shares of your
your
ten
Funds.
we
have
condition of
a
..
Lord, Abbett Funds
Change Offering Terms
the
National
$122,950,000
to
Se¬
of Jan. 30,
as
than $145,000,000,
more
were
year
a
previous.
search
about
organiza¬
management
Securities
of National
tion
the in¬
Simonson said that
Mr.
vestment
& Pie-
optimistic
the future for the railroad,
Corporation
is
steel, building, aircraft and utility
industries in which the funds have
continuing
report
the
industry,
points
of
than
1953
same
period
ures
for
during
full
the
When fig¬
1952.
of
the
become
year
adds, they
will probably show 1953 to have
available,
been
the
report
record
a
chemical
for
year
many
companies.
science's
OF
achievements
of
dramatic
most
1953
—
isolation
to
Affiliated
Fuhd
continued
growth during the year
it
since
shareholders
also
their
wanted
to switch
investments from
one
report to
under
In
their
of the
producing
discounts
sales
to
will
the
amounting
more
essential
addition, single trans¬
entitled
within
to
a
include
now
same
newer
volume
to
investor
$25,000 or
period of 13
months, and sales to
an
other
notable
research
acrylic
makes
of
disclosure
frank
a
its
problems and describes the reme¬
dial sleps which have resulted in
improvement
in
the
shareholders' net asset position.
initial
As of Dec. 31,
the
Fund
were
last, net assets of
equal to $7.78 per
share, after payment of a dividend
from
investment
cents
per
of
income
17
share.
This compares
with $7.56 per share at the end
of the third quarter, in which the
material
raw
for
the
synthetic textile fibers. "As
management, the investment
counsel
firm of Van ~ Strum &
Towne, Inc., assumed active man¬
agement of the Fund.
the
the
letter
sharehold¬
the
to
that, upon
assuming
management
of
the
Fund
in
the third quarter,
the
states
report
months.
"A
decline
net asset value
of
share
per
the year was caused by
shrinkage in the Fund's invest¬
ments in the forepart of the year
in¬
the
of
the last
holders
shares,
stated
F.
that
Defc. 31,
on
Chemical
of
Eberstadt,
the
1953
Fund's
were
Fund
President,
net
assets
this highest
issues
the Fund's income.
While restoring the Fund's income
likely
to
contribute
to
future
growth" the report concludes.
19,-
volatile
more
and to protect
potential,
000
immediate family.
some
research has fostered past growth
of the chemical industry, so it is
In the report to more than
dividual for himself and his
an
1953.
PROGRESS
PERSONAL
of
BOARD
THE
Diversified
vestors
also
the
reflected
revised 1 portfolio
the
market
rise of
quarter. The second crit¬
ical problem, that of
redemptions,
end to have
appeared at the year
been resolved when redemptions
declined and
the sale of
being offset by
were
new
shares.
Services, Inc.,
has accepted the
resignation of H. •
Dudley Swim of Carmel, Calif., '
who has been a director for the. ;
past
two
H.
James
Swim is
Mr.
years,
extended
an
of
tour
ADMISSION
que
OF
MeSi
American
may
in
partner
200
Parker
'■ei-f*
eor^
MASSACHUSETTS
Investors
These
ers.
and
history
assets, 25,093,085 shares out¬
standing and 99,126 shareholders
at the end of 1952.
The report indicates that almost
100%
in
stocks
owned
value
market
at
the
dividends in 1953 and almost 90%
of th^m have paid
dividends
secutively for the last 10
longer.
The
the
report
successive
second
„
that
Institute
New York
—
Chicago
—
„
Atlanta
—
LosAngclex
that research findings of the
Institute
place
Massachusetts
In-
>
vestors Trust in the top quarter of
348
corporations of all types
as excellent.
cur¬
rently classified
The report notes also that
in
Massachusetts
1953.
Trust is believed
lowest ratio
of
all
again
Investors
to,have had the
of operating expense
investment
companies
in
•
the United States.
Important
changes
•
Trust's
portfolio
quarter
of
1953
in
in
the
the
fourth
included:
PURCHASES
Company—
American
Bought
Smelting & Ref Co
Bethlehem Steel Corp
Columbia Broadcasting
Columbia
Crown
10,000 '
20,000
"A"
6,900 '
Broadcasting "B"
Zellerbach
6,700
Corp
5,000
Dayton Power & Light Co.
10,000
Deere & Company
Florida
Food
Power
Mach.
5,000"
Corp
&
24,000 >'
:
Chemical
10,000
Corp
General Public Utilities
24,000
Gillette
25,900 '
Illinois
Co.
Power
Industrial
Co
5,300
.
Rayon Corp._
Louisville
Oil
Ohio
Copper
&
5,000 :
Corp
Nashville
Standard Oil Co,
Texas
RR.
Co.
7,000
Pacific
U,
Steel
S.
(Indiana)
5,000 ;
15,000
.
20,000
♦
5.000
•
-
5.000
•
6,500 *
<N.
'J
Railroad
;
25,000
Company
Union
..
5,000
10,000
Company______
Co
-10,000
10.000-
Corp
Service
Mills
Florida
50,000;
Sold
5,000
—26.000'
Co
Putnam Fund Distributors, Inc.
-
,30 Sure Sweet, Boston
12,600
25.000
Corp
Power
Nickel
Co.
&
of
Light Co
Can.
:
-
17.500
65,300
5,000
Pittsburgh Plate Glass Co
.»
30,000
Ltd
National Lead Co
10,000
-
_
"Public Service Elec.. & Gas Co
20.000 *
Unit°d Gas Improvement Co
18,700.
41,500
United Merch.
i
the '
Manage¬
ment. A statement with this award
said
Int.
»
i
the
from
of
Middle So. Utilities, Inc
.
for
year
management excellence
American
or
certificate of
a
Lone Star Cement Corp
*
con¬
years
announces
Trust has received
Cone
i
the
of
end by
year
Massachusetts Investors Trust paid
Cities
upon request
■
in
net
SALES
or
Lord, Abbott & Co.
:
the Trust
of
with $512,365,938
compare
Company—
Berkeley. St, Boston, Mass.
1925'
.•
all record high fig¬
are
the
in
ures
Chrysler Corp.
Corporation
•FOUNDED
,
Reports
Figures:
Standard Oil Co.
A Balanced Investment Fund
Frospectus
The
'
the
Record
Kenniec&tt
as
$3,229,522f /
Business Shares
be obtained
from investment, dealers
:
>
Clayton DuBos-
general
a
as
Southern Company
Standard'Oil of Calif.__:
Prospectus
:
Murchison Bros., Dallas; Tex., was
elected to replace Mr. Swim on
Phelps Dodge Corp
Reynolds iR. J.i Tob. Co. "B"i
Investment Fund
on
Europe.
associated with
Clark,
Johns-Manvill* Corp.
-
Total net assets of the Fund
of Dec. 31, last, were
A Mutual
-
of In¬
Directors
new
years
monomers,
;
-
the year ended
31, 1953 total net assets of
$3,707,468, equal to $14.21 per
share, compared wtih $3,430,243,
or
$13.58 per share at June 30,
supervision
in¬ before Van Strum & Towne be¬
cluding the production of, chemi¬ came managers.
The remedial steps taken, the
cals by coal hydrogenation, the
development of "Mylar" polyester report states, consisted of exten¬
film and of low-cost processes for sive portfolio changes to eliminate
funds to the other.
actions
lists
achievements of recent
ration reports for
Dec.
came
during
report
Corpo¬
WALL STREET Investing
Trust reports for the year ended
of new manage¬ Dec. 31, 1953, total net assets of
ment, Van Strum & Towne Stock $522,368,398, with 26,752,930 shares
Fund (formerly Technical Fund)
outstanding and 113,678 sharehoM-
the
nine
annual
at the end
compared with $18.62
of 1952.
Shareholders
annual
first
its
in
Fund's
ad¬
31—$17.91
Dec.
Problems
To
In
12%
Chemical
of
as
M. I. T.
Fund Spills
first
may
$17.37
justed for the 54c payment from
net realized profits in December—
31, 1953, according to
the Trustees' 23rd Annual Report.
lead
accomplishment
434,039 and 345,498 shares a year
Asset value per share of
earlier.
ended Dec.
chemical method for treating
the deadly polio virus.
have
of
a
385,690 outstanding shares at the
end of 1953 compared with $6,-
the I. D. S. board.
showed
Fund
ENGLAND
NEW
ers
ONE
Total net assets of $6,699,358 and
out
that the sales of 42 portfolio com¬
In
substantial investments.
search
AMERICAN Business Shares
and
who
State.
the
of
Thursday, February 4, 1954
.
.
long-term growth of the chemical
new management was
confronted
and
identification
of
the
pure
money
which could bring
human polio virus—is featured in by two critical problems: First, a
liquidation or hamper busi¬
of
securities
which
the new annual report of Chemi¬ portfolio
ness in obtaining sufficient funds
a
substantial
unrealized
cal Fund.
The new development Showed
for expansion.
Another element
was
announced almost simultan¬ loss; and, second, the necessity of
of strength is the large amount
eously by researchers at Parke, liquidating securities in an un¬
Davis & Company and at the Uni¬ favorable market to provide cash
versity of California. The new re¬ for the redemptions during the
offerings by discon¬
tinuing the special offering
prices made to shareholders
Gty
Indicative
tight
share
Aidreii.
1952.
year
about
modified the terms
D-83
Name.
1954
compared
economy.
City.
1953 amounted to $1,774,235
compared with $1,524,906 for the
year
an
total of 1953."
of
assets
exceed
will
sales
1954
our
and roads" it
curities Series funds
large potential
stimulation
of
lieve
Net
schools
is
vast
a
whether the market
added, "I be¬
is up or down." He
real, de¬
for
exists
"This
source
one's concern,
higher level of public
a
hospitals,
states.
Address.
172.
construction.
full
Securities
National
the
Mr.
Simonson
said
that
the
"Perspective" lays stress on the
offsets to the negative factors in "prophets of gloom seem to have
the outlook, one being the possi¬ forgotten that income is every¬
amount
SO
the
his statement on
based
that
fact
with
expenditures.
works
the
for
income
Series of mutual funds, sponsored
heavy reser¬ by his corporation, have main¬
vations and follow closely eco¬ tained record monthly sales for
nomic
developments for indica¬ 1953 and reached a new monthly
tions as i to the course of capital high for January, 1954, of $6,170,the
investment
months
decline."
business
equipment
mates
1953,
the Fund
sold
securities amounting to
$2,936,107 on which it realized
$649,704 in net capital gains. Net
portfolio
stocks
many
movement
prices.
totaled
Fund
hands of
the
expenditures and inventories.
One important factor to watch in HENRY J. SIMONSON, Jr., Presi¬
this
connection,
"Perspective" dent of National Securities & Re¬
out,
31,
Dec.
the
decline
the unfavorable trends of capi¬
points
1952,
net
$53,505,934, or $20.39 per share on 2,622,962
shares
held
by
17,410
tal
commodity
per
Nevertheless there
panies averaged 12% more and
with excellent
that their net earnings averaged
yields that discount in their prices
more
for
the
first
nine
largely any reasonable expectancy of a 13%
lightly."
a severe
in business rest their
on
liquid
forecasting; stances,
to warrant such
curacy
Such
few clouds,
$19.61
to
owners.
IN ITS REVIEW OF the economic
the
On
of
assets
By ROBERT R. RICH
WRITE FOR
equal
2,835,690 shares then out¬
on
standing.
securities
series
aggregating
year-end,
any
$55,627,976,
.
&
Mfrs., Inc
Volume 179
Number 5296
.
.
The Commercial and Financial Chronicle
.
(595)
firm of Vance, Sanders & Com'pany, of Boston, effective Feb.- 1,
was
announced
by
Henry
T.
'Vance, senior partner of the firm,
*
•
Hugh
•
"which
underwriter
the
is
for
ing
Company Sales Meeting
'
in
the
f
•
#
Monthly
The Exchange's
Plan permits the purchase
dividual securities on a
six
*
A
Exchange's
Investment Plan.
of in¬
monthly
payment
mutual investment
companies, inMassachusetts
Investors
:eluding
31
basis,
ranging
with
from
$40
payments
to *$1,000
a
Trust and Boston Fund.
month.
DuBosque, a graduate of Yale
University, centered his investment banking career in New York
"The development of the Ex¬
change Plan," Mr. Kalb said, "re¬
flects long overdue recognition of
City until he joined Vance, Sand¬
the need for
1952.
in
ers
In New York
member of
•a
>firm
of
of
was
the Stock Exchange
Witt and
for
fact which
the
long
was
recognized and is now being
extensively used by- the mutual
industry. We sincerely con¬
ago
was with
DuBosque, DeCompany. In 1937 he be-
partner of Eberstadt
a
investment
a
...
convenient method
a
monthly
public
Ingraham and DuBosque
and later
•came
he
fund
gratulate the New York Stock Ex¬
and
'
Company, from which firm he re-tired prior to coming to Boston.
.During World War II DuBosque
Lynch'
-served in the U. S. Air Force with
far to awaken America to the ad¬
the
rank
[THE
ELECTIONS
Lewis
of
and
secretary
says,,
vantages offered in utilizing part
of their savings for the
purchase
J.
iftoss and James P. Schellenger
in
having, "as 'Merrill'at last,' taken this
We think this move will go
step.
Colonel.
of
treasurer
change
of
stocks.
common
as
"We
respec¬
believe
that
the
change in the character of
tively of Delaware Fund were an-nounced
by W. Linton Nelson,
great
owner¬
ship of industrial wealth
country
President.
the
over
past
in
60
this
years
went far to
Mr.
;with
Ross
been
Photograph of the Hugh W.
associated
National
Long and
Company
organization
taken
at
firm's
the
recent
tors, Inc., the national distributor
of
dle
more
secretary
the
•since
since
1950
recently was
named
of Delaware Distribu¬
Fund.
with
nected
Fund
1920
He
the
and
has
been
con¬
investment
field
with
-fund industry since
the
1932.
a
graduate of Girard College and is
a
resident of
S.
Vivian,
Vice-President,
Jr.,
Board
Chairman
of
KEYSTONE Custodian Funds, Inc.
trustee for the 10 Keystone Funds
with combined assets of
$220,217,600, today issued its Annual Re-
bonds for the purpose of providing relative capital stability, re¬
he
port to shareholders of Investment
ported increases in the per share
Bond Fund "B-l" covering operations for
the fiscal year ended
net asset value and in
officer in the
Navy and
service in the South and Cen¬
saw
tral
Pacific.
the
Wharton
Law
He
School
of
Pennsylvania.
a
resident of
is
a
graduate
School
the
and
of
of
the
Dec.
Mr.
Schellenger is
Oreland, Pa.
Dec.
on
31
net
Shares
of
Income
Value
share
per
Jan.
18,
73c
000 had
been reduced to the rates
OF
Group Securities, inc.
purchases
U.
$100,-
over
$249.999—___
$250,000
to
$499,999
$500,000
to
$999,999
$1,000,000
or
U.
S.
Treasury 2%s, Sept.
U.
S.
Treasury 3'As, 1983-78
2%
BelJ
lV4 'k
Tel.
year
last
six
months
of
the
1353
4s,
PROSPECTUS ON
S.
Treasury 2s, Sept.
S.
Treasury 2%
15,
1953.
ctfs., Feb.
or
DisiributorsGroup, Incorporated
15,
Street, New York 5, N. Y.
A Balanced
Retirement
ANNUAL
stone
Growth
closes
a
Report
Fund
marked
of
Key-
We have available
"K-2"
increase
new
combining dollar annuities
with equity securities. It
a
small
profit by the
tax advantages of a quali¬
fied retirement plan.
can
mail this
advertisement! with your personal
or
free
copy,
business card.
dis-
Exchange
Uptown Office 10E.45th St., N.Y. 17
MUrray Hill 2-7190
assets
live
deb.
rection
one-year
2% 'i<
ctfs. ,1954
1954
(March).
the
permit
securities
Trustee
with
attrac-
characteristics
growth
from
On Dec. 31 the port¬
consisted
of
33
preferred
ence?
of
shareholders
share on
list
of
ing
the
Keystone Growth
last
six
months
Dec.
1953
durfiscal
ADDITIONS
Airlines,
Eabcockr&
Wilcox
cum.
conv.
-
Engineering.
Continental
Casualty Co.
Inc.
DSirCu?5? ronv^pfd.
Acceptance
Inc;
$1.50
4'Ar/0
conv.
cumu.
preferred.
National
Tea
Co.
Fa per
Permutit
Co.
Co.
Mfg
4.207/-
$5
cumul.
4.50 'k
conv.
conv.
Gar
Wood
Co.
cumul.
conv.
Lead
&
Co.
$5
pfd.
Cuba
Industries,
Inc.
6%
AVz'/c
Co.
Will
differ¬
guide him toward the in¬
"And
is
it
the
the time to get ready for
now—to
take
advantage
initial blast
Exchange's
of
of
which
ownership
the
letter,
Stock
Ex¬
vital
facilities
cumul.
cumul.
absence
and
give
service he
of
and
The Stock Ex¬
provides
Plan
such
make
purposeful
more
meaningful.
only
the
needs.
me¬
does
investor
We
automatic
think
service
management features greatly
reduces
the value of the Stock
Exchange
are
Plan.
These
features
all available in well-managed
Mr.
Kalb
listed
$4, cum.
cum.
cum.
cum.
conv.
pfd.
pfd.
conv.
vision
of
venience
selectivity, di¬
continuous
aged
Calvin
by
assets
Dec.
on
as
super¬
important
and
con¬
elements
pfd.
preferred.
United Stores Corp $4.20 non-cum. 2nd pfd.
and
automatic
features
inherent
Bullock,
31,
deduction
fore
Corporation,
reports
a
of
1953
of
total
net
$10,859,654
be¬
principal
amount
of
with $11,294,763
debentures. This compares
12 months earlier. "",
Net
at
with
value
asset
stock
interest
$423,391
in
Asset
tures
.
income
securities
$424,974,
from
owned
compared
with
1952.
coverage
$1,000 of
per
amounted
debentures
times
oh
dividends
to
of common
$16.02,"" compared
was
investment
Net
and
share
per
year-end
$16.80.
amounted
to
$5,801.
earned
was
deben¬
3r,v
Interest
on
than
more
8.4
during the year.
■.
Stocks purchased in substantial amounts
during the year included Burlington Mills,
Newberry
of
Co.
Co.,
J.)
(J.
and
Missouri.
in
Electric
Union
<»/
w.
.
sold
•
included Amer¬
volume
ican
Viscose, Marshall Field, Pacific Light¬
ing and Youngstown Sheet & Tube.
'
Commenting
lock,
told
in
now
expecting
the
to be of
progress
and
mild
Hugh
Bul¬
shareholders, ^(Thert j
for
reasons
justment
tively
The outlook,
on
President,
good
are
orderly
read¬
& rela¬
character.
The
by the purrent high
rate of employment,
income and savings.
Moreover, the Administration' appears de¬
is buttressed
termined
set
to
take
business
a
effective
counter
slump;
include
reduced
income
it
to
has
off¬
available
this
$pd.
These
and' corporate
personal
easier
taxes,
to
measures
and
instruments
credit
conditions,
a
broadening of Social Security and
tures
for
slack
of
public
expendi¬
take-up the
to
works
unemployment
if
when
and
appears."
it
,
1
I
NET
INCOME
share,
Walker,
Electric
was
increase
an
Chairman
stated
of
1953
Bond
and
Share
$7,264;211. or $1.38
of
31 '/<?
1952
over
of
$1,.06
a
share,
George G.
President, and Curtis E. Calder;
learnings
in
the company's fourth
Net assets,
quarter re¬
based upon market quotations
including Ebasco Services Incorporated
capital and surplus of $9,300,000,
were
equal to $129,737,000, or $24.71 * a
and
at
its
share,
increase of 1.6 7«> over net assets
1952, after adjusting for the
an
the end of
at
distribution
capital
October,
in
The
to
in
$1,627,818
ican
and
&
United
Gas
stock
income was due principally
greater income from Amer¬
Power Company Inc. Bond
received four quarterly
Foreign
Share
dividends
of
1953.
gain
in
of
1953
15
cents
a
share,
aggregating
$2,365,191 on its holdings of Foreign Power
common
and
stock,
dividend
amounted
to
whereas
income
in
from
1952
interest
Foreign Power
$737,373.
pointed out that the
sale by the company of 110.000 shares of
United Gas stock
in December,
1953 .re¬
sulted in a profit of $1,888,000, and that
the
taxable
gain
was
offset
by
losses
carried
over
from
the sale of
securities*
The
report
also
previous years.
The company's
present
holding of United Gas are 1,655,053 shares,
or less than
13% of the total outstanding.
The
the
company
reported that it is ahead of
the plan approved
time schedule under
by the SEC and the-court for disposing of
in mutual funds and
totally lack-
;
Executive~''Committee,
the
of
port now being mailed to stockholders.
in
investments
NEWS
GENERAL
&
listed, closed-end investment company man¬
not
and
versification,
$2.50
CLOSED-END
CARRIERS
a
company
would
Public Service Co. $6. cumul.
Electric Co.
re¬
emphasis on»'the
concept of servicing the securities
already issued and outstanding."
Company for
mutual funds."
Standard Power Light Corp. $7
Thermoid
the
are
vestment best suited to his needs.
the
preferred.
&
theirs.
perceive
automatically
Smelting
prior preferred.
Stromberg, Carlson Co. 4 7/
cumul. preferred.
facts to
change
Railroads of
Gas
from
chanical
Interstate Bakeries Corp. $4.80 cum. pfd.
Standard
different
make
It's up to us and to you to
that he has all the available
more
preferred.
Novadel-Agene Corp.
Oxford
cumu.
New England
Maryland Casualty Co.
Mining &
Co.
preferred.
Zinc,
should
prospect
ties
Dumont (Allen B.) Laboratories 5% cumul.
C0RV- Preferred.
"A."
Corp.
Co.,
$7.83
of Del.
Trane Co. (The).
conv.
&
$9.12
and tomorrow1
greater
economy
change Plan can, in a mechanical
sense, help develop broader own¬
ership, we believe that it com¬
pletely lacks basic service quali¬
preferred.
preferred.
R.i
33c
Chemical
Spencer
Consolidated
Corp.
(P.
90c
36c
ELIMINATIONS
Combustion
Industrial
49c
Smith, Kline & French Laboratories,
American
Corp.
Hazpltine
3,588
CO.
Chicago Corp.
Clevite
3,394
.
prospects
John Kalb, in a
remarked, "While
Stromberg Carlson Co.
3'/2'/<
Inc.
774,129
Seaboard Oil Co.
2nd
year:
American
$6,057,783
587,913
_
—
primary
"K-2"
the
Fiscal 1953
$5,359,742
share
:
record
sugges¬
promotional activity."
Fiscal 1952
—
31
in the
Fund
of
per
share,
per
of
1953.
31
Dec.
on
distributions
gains
dividends,
Value per
31.——
distri-
stock
shareholders
to
31
Dec.
on
quite
income—our
to the kind of investment
as
such
see
of
out
tions
folio
bution
ownership
added, "But while
we
can
join the Exchange—en¬
thusiastically in arousing a pros¬
pect's desire to become an inves¬
the
reflect the 200%
widespread
Mr. Anderson
other classes.
to
quire
Securities
ctfs.
1958-56
of
of investments."
1953.
stocks and 15 common stocks,
was
—
Dec.
on
These changes were made
Minnesota
Founded 1865
include
to
total
in
stocks
outstanding
Income
conv.
CF
net
Realized
Mallory
Kidder, Peabody & Co.
A1 embers New York Stock
deb.
2%%
to
Monthly
Com.,
Dec. 31,
preferred
Number
a
Exchange's
Com.,
tive
Shares
anced retirement program,
your
Treasury
will all benefit from
we
...
Power
15.
needs of today
to
the
recently-an¬
Monthly Investment Plan
Power
one-year
Treasury 2'/2s,
mu¬
Investment
Plan, and can all agree that it is a
new and powerful force in the di¬
The tabulation below shows the
results for fiscal 1953 compared
with 1952. All figures are adjusted
Total
employers de¬
scribing a carefully worked
out, pre-packaged, bal¬
For
deb.
ending Dec. 31,
1953, also notes that during the
year the investment policy — to
provide capital growth through a
diversified portfolio of specula-
booklet for
even
S.
amended
Report, covering operations
Program
how
2s, Sept.
of
widespread publicity of the
launching of the New York Stock
tor
THE
The
business
Hydro-Electric
Treasury
S.
U.
1954.
for the fiscal year
shows
4'/as, 1967.
Com.,
(August).
assets, number of shares outstanding and number of shareholders.
,
Power
fraternity
think
that
We
and retailers,
curities, and John Kalb, President
of Investors Planning Corporation,
a New York retailing firm.
Mr. Anderson, in his comment,
stated, "All investment men and
women can join the
cheering sec¬
tion
REQUEST
I
63 Wail
"J"
1st
reactions
sponsors
banking
everything
to
encourage - even
ownership of securities is
order
today.
However,, we
strongly believe that the greatest
the
(June).
U.
U.
(June).
1967.,
Treasury
S.
1961.
U.
1961.
15,
1968.
S.
U.
Acceptance Corp. deb. 3%s,
Canada
Hydro-Electric
4'As,
U.
of
Hydro-Electric
Ontario
ADDITIONS
Motors
1954
1957
1967.
Ontario
fiscal
were:
General
Co.
Ontario
l'/o
Changes made in the primary list of
Keystone Investment Bond Fund "B-l" dur¬
the
ctfs.
notes,
ELIMINATIONS
4s,
ing
25/a%
one-year
Treasury 3J/2-year 27/s'!<
3'U
over
4,641
.,
75c
$26.43
(March).
below:
to
Treasury
S.
the
as
funds
Exchange
were
statements by Herbert An¬
derson, President of Group Se¬
■
.■
tual
Exchange and of the
essential.
in
Cautiously
Exchange Plan
Typical
the
broader
of the New York Stock
(August).
salek
on
$100,000
from your investment dealer
Stock
investment
React
nounced
626,372
4,824
charges
shown
A
York
Anderson, Kalb
To
of
generally,
are:
685,540
$26.38
S.
com¬
Fiscal 1953
31__.
U.
as
Results for fiscal
$16,553,493
31-
1954,
invest_
net
paid in 1953
share--.
Dec.
on
high-
corporate
$18,084,968
31
Doc.
on
dividends,
per
Dec.
on
holders
31
The Trustee also announced that,
effective
A Balanced fund
good-grade
1953 compared with 1952
concen-
Dec.
on
outstanding
Number
IHE FUUY
assets
and
government
Fiscal 1952
Total
ADMINISTERED
and
pared with 1952.
issues held
largely
were
in
grade
ment income
31, 1953.
The Fund, whose 32
University of
trated
gnd
change in the form of ownership A
from
individuals
to
large ^ cor¬
porations, the facilities of the few
were
Schellenger, a member of
the Philadelphia Bar Association,
joined the Delaware organization
last August. During World War II
an
dustrial" economy
M.
Fundamental
Philadelphia.
Mr.
was
improve substantially our stand¬
ards of living.
During this great
period of development of our in¬
DeTamble, Resident Vice-President, Chicago, W. G.
Investors, E. J. Lewis, Resident Vice-President,
Los Angeles, E. Williams, Resident
Vice-President, Lynchburg and N. Lobel, Sales Staff. Top
row,
R. M. Groves, Resident Vice-President, Atlanta, II. W.
Long, President, H. L. Sebel,
Resident Vice-President, Chicago, H. S. Oberg, Sales Staff and E.
J. Habas, Vice-President.
mutual
He is
V.
row,
Brady,
help develop our great
production industries, and to
mass
Sales
Meeting in New York City. Bottom row left to right, C. E. Kalbach, Resident
Vice-President, Boston, F. C. Coltrin, Resident Vice-President, San
Francisco, A. M. Hoagland,
Resident Vice-President, Cleveland, R. G.
Frank, Resident Vice-President, Los Angeles, F. G.
Thorne, Resident Vice-President, New York, and T. J. Herbert, Research
Vice-President. Mid¬
•and
•
has
Delaware
*4
32
The Commercial and Financial Chronicle
(596)
..
tv
Continued
would
from page 14
I
-
have
When
this
helped
has
services
demand
free
Federal
Reserve
at
credit
the creation
arid to restore
to
of
Federal
confuse
to
picture. The way to get
this situation, however, is not
the
from
Banks, but to
history and effect of
examine the
requirements, to
see
if some more up-to-date and
more
equitable method of fixing
reserve
requirements cannot be
present
reserve
devised.
The
Federal
Reserve
'
economic
lem
meet
conditions.
fractional
is
time
some
reserve
if
banking
step with
to keep in
conditions.
But
far
so
the interest
which
the
banking
cornmunity
has
shown
in
the
problem has been small, sporadic,
and
perhaps,
too
much
tinged
with the particular interests
of
interests
groups of
/li Does
of
particular
banks.
Federal
Reserve
prob¬
by the fact
the
Treasury faced, during
these years, an unprecedented job
of
funding and refunding an enor¬
mous mass of
public debt, and by
the fact that large segments of
Banks?
Federal
Reserve
the
If
io stick
Banks
System?
Only
charge can be made
that the
now
Federal
of the
tem
the
will
attack
volving
of
Federal
in
be
be
Reserve
Sys¬
Whether
frontal
a
one, in¬
nationalization
the
Federal Reserve Banks, or
whether it be an
encircling move¬
ment
putting the Federal Reserve
Systehi, in with sprawling goverrrtiifeiit departments, subject to
stereotyped governmental budget
arf(t
it'tounting
procedures, the
and
the
regional
independence
character
of
the
Federal
Reserve
System—and, I believe, its effect¬
iveness—will
happen
can
bankers
be
undermined.
here; particularly
themselves
bates
The
was
do
not
It
ness.
is
take
organizational advantages
the' central
banking system
which have' evolved in this coun¬
try.
nificant
In
'defending what we have,
however, and in trying to im•
hay#'in
rtilrid
go along, We
may
hands
of
a§ critics. Here I
of
some
to
the
me,
fiction
is getting
mixed up with the facts about
our
■experienoes-dcfring the
and
war
postwar
period? and some of the
which
is 'being
used totdescribe our recent
adap¬
tations of flexible credit policy.
loose
language
•
I
shall' refer
to
the
earlier
pe¬
riod only briefly.
It is becom¬
ing part of,the lef^nd that during
the War, aftd during the
postwar
release of
our
Here
the
this
ence;
the
was
Treasury.
time
fight all the
complish
seem
with
such
qualifications,
hold
that
freedom
the
in
is
like
and
of
concerned,
I think it is closer
to
the facts to say that the
Treasury
and the Federal Reserve
System
reached
an
agreement, \yith some
compromises along the Way, as to
war
financing and credit policy.
It
is
quite true
that
"independence," but
the
It
inexorable
not
was
the
lost
we
our
lost it to
we
demands
of
meekly handed
war.
over to
Treasury in abdication
of
our
responsibilities.
The
is
the
Our
recapture from
problem
the
com-
mercial banks of the country, and
other
holders of government se¬
curities,
the
initiative
with
the
more
who
men
do to stay
can
have
not
postwar
pre¬
inflation;
at
best
it could only have slowed it
down.
The big damage had al¬
ready
been
done.
The
of the country had been
increased from $36 billion to $102
billion during the war, without
similar increase
goods and services.
in
any
civilian
The
infla¬
tionary effects of this warborn de¬
velopment were suppressed but
not eliminated
They
unless
we
sulted
by direct controls.
bound
were
were
on
drastic
a
in
have
of
re¬
production,
decline
in employment, a de¬
income, and a decline in
cline in
do
not
I
did
been
this
the
drastic
effects
the
to
as
A
to
of
We
answer.
the
money
in
wartime
production
tivity.
Perhaps
and
had
and
by
$11
1947,
credit
a
to
so
some
of
independence.
our
illustrate
To
a
of
issue it published
the
of
Advisers with
dent's
in
some
pic¬
a
"Presi¬
and
then
in¬
prophecy of its
the
about
In
Economic
the caption
Prophets"
dulged
of
Council
I
maga¬
circulation.
enormous
recent
ture
danger,
weekly
a
anti-depression
One section of this state¬
ment said
that "the 'tight
money'
policy, which has already been
liberalized,
would
quickly
be
switched
to
fast
expansion
of
credit by decreasing Federal Re¬
margins,
resuming
the
price - pegging
of
government
bonds, and stimulating instalment
buying." The implication was that
serve
this
remarkable
hodge-podge is
part of the Administration's antidepression planning, and that the
Federal Reserve System is in the
pocket
far
so
implementation of such
gram is concerned.
Or
another
take
as
a pro¬
example from
banking magazine published in
London. "The attempt of the Re¬
a
increase
an
in
mod¬
produc¬
could
the
money
place in
1946
money
and
requirements of
a
a war
massive
economy
civilian 'economy
consumer
increasing
income, the
investment
inven¬
in
possible conse¬
quences
of
prospective re¬
moval
of
remaining price and
tories,
the
the
and
The situation was
as
precarious bal¬
controls.
at
mild
continued policy of
a
credit
of
restraint
sion
In such cir¬
high levels.
cumstances
indicated.
seemed
expan¬
In
keep¬
operations, the discount rate
increased in January from
ket
gains in bank¬
resulting
largely
to 2%, and
ing
reserves,
from hand to hand use, were
Randolph Bur¬
Mr. Humphrey, the big
and
gess
Mr.
battalions of the dear money
'putting
value
school,
the
into
broke
the
leaving
fled,
and
and
dollar'
guard action to the hast¬
rear
ily organized
open
the
tions
of
Here
we
market
Federal
tied
are
in
opera¬
slightly
or
more
by reductions in
of
dication
our
mildness
the
this
of
holding action, the member banks
gained about $1,200 million in
reserve
funds from Jan. 1, 1953
to
through
mid-March,
flow
turn
of
in
cline
lost
required
the
and
currency
little
a
a
and
transactions
the government
the
of
As
son,
million
reduction
a
in
Banks.
however, the need for alert¬
to signs of possible declines
economic
activity increased,
the
decline
in
farm prices and farm income and
the then unpredictable economic
consequences of the cessation of
fighting in Korea. At the same
time, the pressure of an unusu¬
ally sustained private demand for
bank credit was augmented by the
highlighted
emergence
to
by
of Treasury needs for
of which would
cumulating
These
the
from
come
banks.
pressures,
op¬
policy of mild
restraint on the part of the Fed¬
eral
Reserve
System, converted
against
erating
a
into
policy
of
one
than
restraint
severe
unwholesome
more
the
eco¬
to justify.
nomic situation seemed
giving a final fillip to
inflationary devel¬
opments, of creating a bubble on
Administration, when all the time
tion
our
to
accommodate
of
needs
it
the
began
rities
the
domestic critic
been
subtly.
He
says
puts
have
we
purchased.
amount
of
market
was
lectual
osmosis.
all
It
seems
to
given
again in 1953.
up
what
exactly
during
shall
leave
done
it,
the
out
which
intra-mural
discussion
and
broad
cannot
be
because
have
shall
erly
need
to
year?
the way
has
to
we
we
caused
I
have
some
confine
and
broad
objectives.
policies
The story
definitive,
of
to
been
past
debate,
my
have
certain
a
course,
extent
we
pioneering, and we
later judgments prop¬
the results.
assess
If
we
first,
then
inflationary
with
while
the
Treasury
continuously
pective
excesses
deflationary
a
borrower Of
to' meet^c'ash
was
borrower
deficits.
and
dangers,
almost
or
pros¬
new 1 money
' 1
net
the
in
the
by
$125
repurchase agree¬
made with non-bank deal¬
in
ers
addition
credit
increased
ments
add up to
In
reserve
million through
done
secu¬
open
again become subordinated to the
Treasury by a process of intel¬
Now
Banks
government
buying
in
Reserve
Federal
$157 million of Treasury bills had
erudite
more
Taking cognizance of this situa¬
government securities.
of $282 million
increase
reserve
funds
available
market
is
small
no
to
chunk.
A
in
the
It
might have been considered as
a
significant sign of a change in
policy and of a prospective easing
of credit availability.
But mar¬
kets 1 are
creatures
of
expecta¬
tions as well as events, and the
market and capital market
jittery,
in the face of what they thought
would be normal increases in pri¬
vate
demands for funds during
money
had become disturbed and
second
the
half of
the
year,
ac¬
companied by Treasury demands
which
seemed
to
grow
in size
with
each new estimate.
There
was
no
immediate reaction to our
relaxation of credit restraint dur¬
ing May.
fact
is
We were up against the
that, at best, central banking
an
art,
riot
an
exact science,
the risk of giving
run
action
The
took
the
System
in
precipitated
was
timing and form—but not in sub¬
the
stance—b,y
the
of
needs
Our open market op-"
erations were stepped up in June,
Treasury.
and lower bank reserves were an¬
nounced
early
take .effect
to
in
cynic or the,,skeptic
can say that this reduction in re¬
serve requirements coincided too
neatly, in timing andy amount, L;;
with
the reserve
needs ? of 'the
The
July.
,
as
related
to Treasury,
borrowing, to pass muster as' an ?
act of credit policy. The alterna^
banks,
,
tive, however, in the face of The
necessitous
borrowing / of
the
Treasury, was to allow that bor¬
rowing to
at
press
and
serves
on
hard on bank re- >
private financing,'?
time when the economy was
a
longer
no
flation and
balanced between in¬
stability, but between
It seemed
it seems to me
stability and deflation.
to
then,
me
and
that it would have been eco¬
nomically unjustified to run the
now,
tipping the balance toward
From
early
September,
much
levels
July until early
followed pretty
moved sidewise at high
with stability in the
and
We
had
convinced, hovyever,
that
indices.
price
become
it
we
hands-off policy while the
a
economy
safe to make our errors on
was
the side of credit ease and, during
September,
antici¬
to
began
we
pate the expected increase in de¬
mand for credit during the last
The fact that
quarter of the year.
private demands for credit did not
come up to seasonal
expectations
made it look as if we had over¬
purchase of
shot the mark by our
$359 million of government secu¬
during September and the
first week of October, and this
rities
exposed
that
us
had
we
again
charge
the
to
become creatures
of
I have no
hesitancy in saying, however, that
our
policies were dictated pri¬
marily by economic factors, other
the
needs.
Treasury's
debt manage¬
than the Treasury's
and that whatever
made were not dic¬
ment problems,
mistakes
It
we
mistakes.
tated
our
policy to the
changing
economic
situation.
An
boom, had receded.
a
market during
the week ending May 13 and, be¬
fore the month was out, a total of
credit
a
top of
then
broader
into the spring sea¬
came
we
that
shove
reason
deflation.
security holdings
Reserve
Federal
The risk of
thought we were acting on
non-political
initiative
during
available
influences
a
hard
into
the
foreground, by
of faulty market assump¬
concerning
future
credit
risk of
ness
in
not to
were
re¬
through gold and foreign account
with
own
shaken
be
to
view that credit would
readily
de¬
monetary ideas of President Cool¬
idge, and charged with being used
as
expendables
by the present
we
be
not
|
had
market
out of the
and
reserves,
$1,300
over
Reserve."
the
off¬
than offset
holdings of
government securities. As an in¬
set
fore it started.
deflation
of currency
return flow
from the
have
had only to work by the book, we
the
faster than
new-money, some
should not have had to cope with,
in
increasing
spending
consumer
publicans to go back to Coolidge
and 'sound money' has failed be¬
At the first whiff
The
of inflationary forces.
We tions
concerned, however, about policy.
gence
1%%
this
might quote from
zine
erosion
have
we
took
primarily
up
emer¬
was
renewed
of the increase of
billion
but
grow
prices,
increases
readjustment from
re -to
policy
denial of the
some
against
is
of human behavior.
deflationary
the critical area of
prices there was little confirma¬
ing with such a policy and con¬
sistent with previous open mar¬
now
still
other hand, in
gressional committees charged
with looking into our actions and
status.
What we have to guard
was
expansion of the
erated
or
support has been evident
since, and has found expres¬
sion in the findings of two Con¬
this
the
supply through
prevented
That
ever
some ex¬
problems
problems
and that our
quite largely
reaction,
are
the second half of the year, if we
ance
pre¬
inflationary
financing was not
war
Independence
that
economic
credit
erase
Reserve
right
country's
strength.
Federal
supported to
between action and
the statistics of Novem¬
ber and December, 1952. On the
by
characterized
and
then
not
scription for the troubled postwar
world, when so much depended
on
Danger of New Erosion of
the charge that the in¬
dependence we achieved in 1951
believe
now
have
with
1951,
out,
program
would
decline
a
break
in business,
tent
wage
ready and able to
which
in
to
March,
money
supply
supply which
defensible.
in
one
is
to
young
of
the
growing support of banking and
public opinion.
of
$10
less
But
inde¬
our
sitting
policy could
vented
"accord"
was
in
affirmed
and
inde¬
asserted
then
we
broadened
lack of
a
of
prime fact to be
remembered, also.
A more in¬
dependent, more effective mone¬
tary
pendence
The
interest.
the
the game.
long postwar delay in dis¬
mantling war financing policies
was
ex¬
demanding
some
national
Administration's
our
probably
defense
having all they
would
period is
war
a:ted
failure to
our
bleachers
are
have
to restore
action
in
pendence,
courage
who
majority opinion.
impute
courage,
did
we
of
those
should
we
than
sooner
I
the
en¬
other, in support of the
long-term market.
But
despite
tion.
as
which
the
to make for such
eqsy generaliza¬
So far
rates,
abled us to offset with one
hand,
by sales of short-term government
securities, what we were doing
consumption.
management
ac¬
as
early as
unfreezing of short-
interest
icy
debt
did
we
something
a
pol¬
was
revival of boom psychology
some
lags of unpredict¬
are
able duration
non-statistical evidence of
or
were
the
In January,
considerable gen¬
1953, there was
eral
long, in what we conceived to be
own
was
appeared at the time.
tion and
tration.
independ¬
a running
And
way.
1947 with the
term
it
of
dragout
planning of the present Adminis¬
Surrender
surrender
The demands of capsule treatment
of a difficult period in credit
and
prices.
again, however, there
meek
no
deflation
System
of
bank
in support
reserves
No Meek
eral
servant
reduce
to
of government security
embark
Reserve
were
extent,
years"until March, 1951, the Fed¬
supine
in cash sur¬
used, to a sig¬
reserves, and thus to offset much
of whatever harm
was
done by
There
'Which; lfti$feems
gen¬
credit
worth
drawing
was
press
of
well
of
that
measures,
so
remembering,
though, that during much of the
early postwar period the Treas¬
to
and the
friends
cautious,
so
policy lost much of its effective¬
if
public un¬
derstanding of the basic principles
atf the
de¬
our
distrustful
so
credit
new
a
and
knockdown
public
existed
of
result
policy
a
hestitant,
eral
It
th^'irbuble.to broaden
prove> it: a$:-We
'be
dahg'er
opinion
professed
jectives.
off
set
My outline, then, will be just a
broad sketch of policies as they
fight with the Treasury, which we
had been trying to avoid for so
bases for strong
Reserve
danger.
so-called
of
into
though we and the Treasury
the same ultimate ob¬
even
serve
primarily the
selfish and pecuniary interests of
the private
banks, the independ¬
ence
The
pluses which
Well, you now have a right to
ask, what has all this got to do
with
the
independence
of
the
this.
hands.
differences
ury
Selfish Interests of
"O
Serve
to
changing
The
complicated
was
that
to
Korea
of inflation, we did act
promptly and vigorously. This in¬
volved us, in August, 1950, in a
ability
firm
be solved at
particular
.
credit
in
tilities
reserve
Banks
have to
changing
r-
such
outbreak of hos¬
sion of 1949, the
the availability and the price
vary
of
of
tne
Reserve
that debt had not yet settled
system
a
to
the
to the new mone¬
spiral
System has made studies of this
jproblem, and it is one which will
our
:
spect
had pretty
economy
up
there
that
of 1953
The Record
this
even
tary magnitudes decreed by war
and when, after the mild reces¬
Federal Reserve System
the
our
well grown
Independence oi the
haps
made
doubtful.
'
Thursday, February, 4, 1954
.
is
unfortunate
an
estimates
of
what
fact
may
that
hap¬
to bank reserves from day to
day and even from week to week,
as
a
result of ordinary market
pen
factors, are not too accurate.
Over
period they come out
pretty well, but the intervening
swings may be wide. If we were
a
longer
going to give the business community and the money market a
as to credit policy during the
last quarter of the year, when it
seemed necessary that there be no
lead
the continued availfunds, we had
to run the risk of overshooting
our immediate objective in order
question of
of
ablity
reserve
term result.
to achieve the longer
When
for
demand
the
reserve
catch up
with the supply at the end of Oc¬
tober we resumed open market
funds
again
purchases
rities
began
government
of
and carried
on
secu¬
through the
And, as the spec al de¬
the year-end began to
year-end.
mands
to
of
the central money
the reserve posi¬
impinge
on
markets,
while
tion of the rest of the country re¬
mained easy, we gave
lief
to
the
money
special re¬
market by re¬
ducing from 2 to I3,4% the rate
applying to
repurchase agree¬
ments with non-bank dealers in
government
securities.
In this
the dealers were enabled to
supply a temporary home
for
way
short-term
Treasury
securities
,
Volume 179
Number 5296
The Commercial and Financial Chronicle
.
.
.
(597)
which
corporations
wished
with
Continued
and
with
System's
Reserve
No
Snowballing Into a
Major Stock Market Decline!
de¬
Objectives
goods
There, in brief, is the story. We
have
been
trying
do
to
what
is possible for monetary
it
manage¬
ment to do in
helping to maintain
a
high level of production and
employment without encouraging
inflation
ess
of
still
had
some
may
will
undergo
A
Philadelphia
capital
increase
an
of
expenditures
induced
isolated instance to be
had
compared with
14%
vigorous restraint
contemplated, to a
from
much
'52
better
an
to
'53
to
increase
of
'53.
This
4%
and is
forecast for the rest of the
turn in the economy
President of
and
evident.
more
At
more
time
no
since last June has there been any
real
about
concern
availability
needed
to
of
quirements of the
On
the
the
ready
funds
reserve
support
credit
the
re¬
economy.
record,
and
without claiming too much credit
what has happened, because
policy,
best,
at
only
is
of the picture,
part
one
would
I
say we have been reasonably suc¬
cessful.
Up to the end of 1953
adjustments which were taking
place in the economy proceeded
gradually, without setting off a
chain
reaction
If
movements.
present
of
downward
this
continues,
policies
plus the normal
forces of growth in our economy,
which are very strong, should be
sufficent to
before it has gone too far, too fast.
If a cumulative decline should ap¬
pear
signs of
show
the
the
that
Federal
record
Reserve
System
within
political system,
and in the light of the economic
conditions with which it was con¬
It
fronted.
is
than
less
accurate,
and less than fair,'to try to
it back into
a
shove
niche at the Treas¬
To be sure our' policies have
consistent with the over-all
policies of ^the
Economic
govern¬
ment, and have coordinated well
with the debt management poli¬
That is what
cies of the Treasury!
when' reason¬
would expect
have
men
the' same 'objec¬
the
from
working
tives
and
same
set of'facts ^'formulating
their
policies
are
and "programs, We
to
use
our' inde¬
seek
not
pendence to oppose-'government,
merely for' the sake of showing
our
independence.'That would be
and impossible. As I
intolerable
inde¬
our
within*-.the 'govern¬
it
pendence
'
before,
said
have
day; we cannot be
independent1 - of the government.
But
neither
can
within
independent
ion,
and
be
to
of being
subservient
govern¬
it
when
of another. If that should
is
be
would
and
be
a
destroyed
with the next turn of the
political
is why I have
That
time and tried
^our
this review of our
the past year.
taken your
patience with
policies during
It is important that
they be understood,
if we are not
begin to slip again into a
bring
to
the
storm
in this- than
more
simply a commendable community
spirit on the part of Mr. Curtice
.
.
the fact is that the
.
which,
the
Federal
independence
Reserve
of
System
jeopardy.
situa¬
would
eventually,
under
compuncp
to
his markets and
improve
petitive position
when business
°i.'
com-
always greatest
is
good. This
is
is one
things which makes and
.
ultimately breaks
Secondly:
further
It
is
upward
big
ls
boom.
a
n0*■
said
that
movement
at
us
that all of
looking
of
a
^e cards with-
ln
diselization
as
to
our leading
working
harder
than
ever
before
creating new
techniques—new products—and in
are
whole
cases
and obsolescence is
than
industries,
new
growing faster
before.
ever
Thirdly: Advertising and selling
are
being stepped up
all
sides.
must
be
this
In
that
has
plenty of cash
assets and
ply of
a
a
to
to
respond
but
business
adopt
"wait
a
policy." On the contrary
see
it "is
con-
knows
consumer
American
does not propose to
and
sup-
a
one
what the attitude of the
be
determined
to
out
go
and
create the demand for its products.
Fourthly and finally, a new in-
gredient
has
economy
in that for the first time
in
20
years
bed
for
won't
get
have
recession
and
been
been
added
there is
an
to
the
Adminis-
be
at least
result
of
and
in
expressed
to lay
recent
taking
that
one
^the^e^ DraT have "felt
a
rea? change
would
predictions
good to be true. This applies
ticularlv
to
Taft
the
looked
better
than
on
a
Ike
par-
supporters
not
much
Republican
New
as
Dealer from whom little could
year
than
a
in
another,
For
ministration
has
office
jn
and
^he
as
a
pians
jn
of
the
iav0rable
the
light
of
Are
the
least
Equities Attractive
Dealing
first
with
common
stocks, how attractive are equities
fundamentally
which
we
dividends
reasonably expect
may
to receive from
Dec.
of
as
work out
the stocks
Public
1953,
31,
on
proach
lems
as
to
such
these
years
yields
Utilities
5.20%
Retail Trade
4.9
__
Banks
"
stocks
4.3
5.5
___33_II3_3333_ 3^4
Drugs
IIIIIIIIIIIIIII
management,
and
its
and
ap-
prob-
budget
long
range
Textiles
Preferred
5
in
a
<
outstandingly
ering
the
risks
seem
consid-
involved,
reasonably
we
these
while .not
attractive,
never-
good
to
dividends
if
few
a
Committee
lem
of
common
the
revealed. While it is true that the
have
put
administrative
have
projected
in
a
chart
together
for
in
t,
values
we
which
we
a
4.25
5.98 J
8.60
34.00'..'
Cap
Stocks
that
this
ones
field.
Preferred
but
quarters
many
all
for
with
1.9
2.3
5.7
dU7
on
I
a
feel
we
Preferred
interest
is about
on
du
safe
as
the
bond,
is
at
times
poor
are
wide.
fluctuations
the
more
in
nent
upward
event
shift
a
you
is
available
into
to
of
qhoiqe in
time, to 4um
ap$ short
cash
'
■
mJnvu;/'
,
_
-V\
i
•"
coir!
The New York Stock
Exchange
has announced the following firm
changes:
.r!.,
Martin
& Co.
perma-
interest
m
j
(:j
,
I/will
Berkowitz
*
^retire
price from partnership in Joseph;Klein
Further-
of
rates the risk of loss
if
and
j
3-
'k
Weekly Firm Changes
Admittedly marketability in most
cases
values
p
that
as
s nr
<
INew York otock Lxchange
Pont
government
a
ccr
alts
.
•
oof
professional investor
good range
It is not yet
are
great
a
*><
"-i
t v
governments.
am >
stocks
like
stock
a
i
VH vrD ' h
sufficient number of rea-
a
1954.
are
practical purposes the in-
come
165'
81395
-
1.7
2.0
there is
continue to find
in
160
I
>1141
78.00^
1.5
real
very
compare
the
past
eight
c
nei.
Jan
30
Kenneth Smith, .limited partin Bache & c
became
fcral
same
j
"
onsthe
Sam^J. Smtfji,
general
partner
date
, Feb
years
3
up
very
,,
.
,,
,
worthy of note that the
is
credit
proposal
benefit
shareholders
as
shareholders
if
well
it
Ceoffrey c
tax
common
partner in Dobbs & Co. became
a
limited partner Feb. J.
Tonn,10„
uations
such
The
steady
of the
some
.
as—in
School
—our
.
special
sit-
Pennsylvania
Authority
flow
of
tax
Bonds.
exempt
may
be interrupted
if
the recent proposals made in Congress
curs,
'
HmitcH
Wh
nartner
i
Stern Brothers Add
opinion have been obtainable
.
i'-'T-La
L.
so
segments that it is difficult
generalize. The best values in
and
.
.
'l
Exempt Bonds
Issues
-
a 1,mlted paItner Feb' U'ai
through.
exempt market has
Turnpike
Armbrister. general
preferred
as
goes
would
are adopted, and if this oc¬
the outstanding issues may
acquire
a scarcity value.
On the
other hand, the issuance of Turn-
diminishing
_
.
,
and
...
,
will
relatively
good
.
.
.
probably
obtainable
from
continue
this
'
'
AO
„
RANbAS CITY, Mo..**Leslie B.
Meyer has become affiliated with
Stern Brothers & Co.', If009 BalhAvenue, members of the
Midwest Stock Exchange. Mr.
Meyer was formerly with the
Bankers Bond & Securities Co.
Scherck, Richter Company, and
Edward D. Jones & Co.
Wifh
K"ir»<r
vvlin
Cn
lvierri"
,
(SPecial t0 THE financial chkonicle)
SALISBURY, Mo.—Rudolph C.
to
S?egeA/r *s .+Z°pW connected
King Merntt & Co., Inc.
although
as
mileage"
is
"branch
line
increasing
dis-
more
built
source,
crimination will have to be shown
in
choice of
issues.
rea¬
c
outstanding
there
are
values! in
not
many
any
field,
A JJ
'Special t0 THE FlNANCIAL c~">
-
Schmidt
Bank
Qf
the
change.
He
berg
Although
•J
B^ett^as'becfme Smated with
Boatmen's
r.n.,.,einn
conclusion
L
Bramman-bchmidt Adds
Bramman
is
which
1954
i
to
favorably regarded in
yields
to the prob-
stock
to #1
.>
ac-
through,
goes
13.57
38.00
the proposal
Another approach
buy in
List #2
8.21
(1952)
the good
we
values
.
net, .worth
1 $10.15
tax)
pike securities shows few signs of
approved by the House Ways and
Means
and
$6.32
everything
be
crue
will
—
consider the tax
advantage which may perhaps
increased
is shown below:
List #1
P.H.A.'s
expectancies
average
earnings
earnings, dividends*met
which
from the P.H.A.'s
,,
market
money
market
capital
many
return,
3%
of
working
the
to
be lower' but taking an avei'aSe
average
terms
num-
the
good
our
...
..
..
at
provide
exempt, and
Was
better
when
comparison of what $100 in-.
vested
freely in Pennsylvania partly because
of the
Pennsylvania Personal Property Tax feature from
Tax
6
Non-Ferrous Metals
.
has
sonably
The
4V4
Steel
into
be
Net Working
of
cn-
perfprrhahce
been
1953
Preferred stocks have been used
4
__
the
has
1947 to
and
during this
share and dividends
By Current Earnings
By Adjusted Earnings
5
___
when
#1
'the
inw bet
dividends
growth
Coverage
4.3
Building & Maintenance
Electrical Equipment
#'l" from
List
of
from
performed
•rh" i
presumably
Automobile & related
industries
List
(1952)
/
6.1
developed
may
Worth
dividend
4.3
planning is only beginning to be
program
Net
(It
3.5
______
than
#2
f.*.a.,slovIer
/vfte».for tiiehSv£?J1<*
list than for the first.
Blue
a
du Pont Preferred shows
Chemicals
Oils
from
4.4
__
List
earnings
only period
con-
(adj. to 50%
(Current)
Working Capital
most
i
partner became a ljmited partner:
with and
Morton
F
stern, .general1
long-term Treasury 214s or Norpartner, became a general ,:and
folk and Western 4s lor example,
limited partner.
3
Packaging & related
products
1953
time
Value
Net
over
Foods
.?*
worth,
Dividends
By
K
:nr"
tire
0f
the market
action of du Pont 3%% Preferred
4
Tobaccos
Market
Dividend
{
■
entire,riperiod
The
that,
List
included
Earns,
Yet
4.5
insurance
theless
important
taxation
our
follows:
as
$100
<
.
Earnings
aware
the
time
■.
»*»-'<
i
„
standpoint
per
Pale
Stock
Current
not
estimated
especially if
different
Per
looked at from this point of view?
Ad-
laying the ground work for
Versus
Current
We
have
better
we
good stocks which are not
market leaders.
In recent
years
lay his
case
possibilities,
first
more
of
he must
consequence
natUre
its
little
some
ber
jnvestor is essentially a protective
the
spent
doing
be
for
too
$ £«« ^^$££3
be
Common
,
the
to
A
The function of the institutional
one
year,
these
cheap, these stocks
Our
the ,uxury of taking your own or
people's
seriously
of
1929
pro-
offer fair value.
Chips
,
Over
possible
a
indication
Blue
,
Square "D"
'
rhi
ca„.t indulge yourself
0tber
as
and
coming
Another
tinue to
in the business of
of
other
people's
care
m
value
prices
while not
1
Hercules PowderdisJi,
result
the
,
^
^
seven-year
book
for
1954.
jf you're
gu^.
.
Jersey
leading
stocks are about midway between
the high and low projections for
the boom.
Machinery & Equipment-- 4.6
fully realized. For
to
that
the foundation for
labor.
been
all
being to "talk
depression" could
Aircraft Manufacturing
now
a
the
range
find
temporary resumption of
a
New
moving
of high and low prices in
jecting
of
of
a
tration in Washington which is a
friendly Administration—friendly
alike
to
business,
capital
and
Although this is "old hat"
by this time, I do not believe the
importance of the change has even
on
relation
in
misgivings which
instead
ourselves into
well
The
one.
of
Union Carbide
Based
repre-
List
v
~
signs
depression
and figured in relation as to prices
credit to put it in
vincing sales talk. No
will
the
under
it
liquid
readily available
consumer
position
have carefully been
us
the
be sold,
and
are
and not in very bad years, but in
periods of relatively low earnings
on capital. For the various groups,
connection
remembered
American public likes to
It
we
Investment list, not in good
programs
on
when
Oil
as
recently
comparison of
Gamble
Sears Roebuck
Standard
1954, it is m^ personal guess that
the Re-
search Laboratories of
some
in
the
it.
support
offset to this,
an
times
cumulative
a
we
a
on
been
that
looking confidently for bigger and
better things. Purely on the basis
tion which drives the businessman
expected.
wheel of fortune.
to
taking
happen,
would
independence
sham,
tion
of
have
I
business
Motors
Procter &
well
as
and
American Can
National Lead
Union Carbide
General Electric
Johns Manville
average
observation
my
'
International Harvester
our
is invariably pulled out from
rug
months
who
our
time
instead
cellars. There is
—
complex¬
the
investment
current
years
the
it is of one
when
ment
afford
we
be suspected
even
—
the
of
ment
during
the
it is
up,
doubts
framework
the
American
the
do
business
sum
the
on
companies
,
functions
able
responsibility
To
avoid government intervention by
itself continuing to forge ahead
But,
it
—
during the past year has been the
record of an independent 'central
banking system, performing its
you
during the next
higher than that
years). Incidentally. Mr.
American
decisions and the turn-over of
money supply.
a
T.
General
a
well result in a significant
change in the all important factor
of psychology which determines
in such large degree business
the
road
submit
now
ury.
in-
capi-
on
least
may
to
would
measures.
been
resting
an-
company
billjon
two years (a rate
to try to check the
with
more
positive
breakdown
movement
of
tends to spend $1
tal improvements
Motors,
building
boom,
or
some
technological revolution such as i;ail-
necessary
of
his
Curtice,
out either another war, or another
economic
I
that
of recent
Mr.
"war"
"peace" should
be
is
General
to be getting under way—if
this second transition from
to
here
nouncing
the movement
reverse
but,
Curtice spoke of the
therefore,
for
monetary
try,
coun-
at
done
Chips"
J. C. Penney
General Foods
become the Law of the Land,
the extent that this is so, it
To
an
decline
policy of increasing ease, as signs
of a' modest and gradual down¬
became
is
sure
than the
in
18%
from
'54
we
Federal
Bank
a "boom," through a brief
period when market expectations
than
precipitate
a
is
there
not
"Blue
made
sentative stocks in both
groups to
determine their relative" V&lues:
'
General Electric
they
politics,
of
have
the
Chrysler
chance that important parts of it
planning
as¬
pects of
more
they
we
du Pont
their peak but while this is probably true it does not follow that
have
Survey made
a
short time ago discloses that industry in the Delaware Valley is
a policy
restraint, when the busi¬
situation
ness
fol-
Bethlehem Steel
bogged down in the cross currents
Reserve
have moved from
we
mild
the
stocks:
American Tobacco
passed
expenditures
decline.
deflation. In the proc¬
or
for
range
representative
American Can
mands.
The
price
lowing
reserves
seasonal
meet
to
sonable
page
year-end adjust¬
additional
which
from first
in
cash
the banks were pro¬
ments,
vided
with
others
and
into
convert
to
connection
33
-
Midwest
was
Busch,
Building,
Inc.,
mem-
stock
Ex_
previously with
A. A. Tibbe & Co.
The Commercial and Financial Chronicle
34
Thursday, February 4, 1954
(598)
i
with
even
Continued jrom page
12
States.
United
the
of
out
in quantity can be ob¬
for
dollars
through the
Since gold
tained
the dollars
Central Banks, and as
hands have accumulat¬
sums
for which
in foreign
ed
immense
to
any
for surprise that the price
reason
of
determined by
has been
gold
selling rate?
the United States
of
Movements
the
from
gold
reveal that the Rus¬
more
goods
from
USSR merely
desire
sians
is there
demanded,
is
gold
match with
exports acceptable to those with
whom they are trading.
To re¬
ceive gold for goods at the pre¬
vailing rate is surely beneficial to
than they can
abroad
the
of
economies
the
European
however, the ex¬
If,
perts are wrong, which is usually
safest thing to anticipate, the
flow of gold out of the country
foreign
as
build
balances
up
as
the our exports decline in an increas¬
Homestake, the Golden Cycle in ingly competitive world will in all
Cripple Creek and the dredging probability force a revaluation of
Let
companies continue to hold their the dollar in terms of gold.
own
by virtue of economies and us hope for the welfare of the
technical advances of one sort or country, as well as for the dwind¬
another.
ling gold mining industry, that
established operations, such as
for
outlook
the
in
Confidence
gold mining in the years imme¬
diately ahead still persists, how¬
ever, for a swing either way in
the economy of the country could
If the de¬
bring marked benefits.
pression expected by so many al¬
leged experts actually develops,
the
needed step
poned until
our
will not be post¬
metallic monetary
Continued jrom page
should
sales
Russian
the
be
possibility of sale of Unit¬
The
ed States butter to Russia for gold
ought to be seriously entertained.
and in
that
our
ceive
the
an
own
economy
inevitable
will
benefit
the maximum
increase
re¬
from
in
The
price at which butter would
find a market abroad (Russia or
elsewhere) is certain to be less
than the domestic cost of produc¬
in
tion
ciated
home
at
abroad
that is depre¬
and overvalued
currency
a
the dollar being re¬
deemable in gold at the current
by
it is
official rate—and
than
lower
sure
-if
doubt
would
there
mand
much
be
change in the amount of gold of¬
fered pet- unit of butter.
Even the
advocates of a managed currency
ought to recognize that gold keeps
better than butter and provides a
much safer way to store wealth.
In
business
vided
price
by
spite of the unfavorable con¬
of the times for gold min¬
anticipated
be
can
levels,
continue
will
pro¬
employment
and
high
at
that,
de¬
the
of
all
for
these types of construction.
estimated
is
It
ment
will
there
traction
that
only
be
demand
in
struction.
the Depart¬
by
Commerce
of
in
1954
mild
a
for
con¬
with
system, and
needed
money
Expenditures
are
ex¬
pected to reach $34 billion for this
purpose—about the same as that
for 1953.
In
no
government
add
to
volume
this
of
Without
rates.
these
qualifications, all of which are
part of a '.'sound" national econ¬
omy, credit will not, and should
not, flow into the housing field in
unlimited amounts, because if it
does, the inevitable result will be
disastrous.
The
interest
regulated
characteristic
of
FHA
though
from
fields, even
with regard
doubt
some
the
to
adequacy
of
profits
the
Commerce
with
the vast investment
mines
and
plants
in
still
might
entertained if the returns
restricted by
new
be
still
are
ill-advised monetary
policies.'
Conditions continue
be par¬
to
ticularly
difficult for the Cana¬
dian gold mining industry.
The
change from premium to discount
in the price of the American dol¬
lar resulted in
$4
since .1940
the
return
per
in Canadian dollars, which
than offsets the cost-aid
ounce
far
drop of close to
a
in
more
provisions of the government for
a portion of the output.
Costs, al¬
ready high, were further in¬
creased as a result of
ill-timed
camps
strike
in
of Ontario,
a
futile and
most
of
the
called
by
the
leaders of the United Steelworkers
Union of
ed
in
with
many
America, that result¬
weeks of shutdown
mortgages played an
immense
losses
to
the
em¬
ployees, to the stockholders and to
the
communities.
Under
these
circumstances, it is hardly sur¬
prising that scarcely a third of
of
months of
their long-term na¬
in
the
This will
1954.
coming
assure
for
mortgage
credit. Time deposits in commer¬
cial banks increased $2.5 billion
resources
in
fairs
in
1953.
had
It
long
been
ing economic conditions.
$12.5 billion for the year. This is
a tremendous supply of new capi¬
tal available for normal mortgage
our
It is an insurance pol¬
safeguarding
national
When
the
the
future
of
amount
of
welfare.
annual
new
centive
discover
exists for
and
endeavoring to
develop
new
gold
mining enterprises though the few
savings,
ception
money
of
work
obtain
we
the
vast
some
con¬
amount
of
available for long-term in¬
vestment,
of
continuing the high level of busi¬
activity is
ness
real challenge.
a
With the appointment of Albert
Cole
to
the office of Admini¬
is that
all
our
within
private
the frame¬
enterprise
It
government will encourage
private enterprise to do as much
of the housing job as possible, and
that
the
role
government's
will
dominant one.
be the
not
Attitude of Others
The
Government
in
of
evidences
other
are
government's desire that pri¬
vate industry do the job.
Con¬
chairman of
Currency
Committee, has emphasized this
point.
He believes that stabiliza¬
Wolcott,
gressman
the
House Banking and
tion
American
the
of
essential
is
world
to
economy
and
peace,
industry to do its
Finance Agency last year, the Ad¬ part in the housing field as part
ministration
embarked upon a of that objective. Chairman Wol¬
complete study of the entire na¬ cott is a staunch defender of pri¬
tional housing and home financing vate enterprise.
He believes that
problem.
Through shirtsleeve government should refrain from
conferences with leaders in this making direct
loans out of the
field in all parts of the country, public Treasury in fields of real
Mr. Cole has obtained a first-hand estate and home finance, for he
Housing and Home
understanding of the problem, and
in
set
has
motion
plan
a
for its
President Eisenhower
appointed
Advisory Committee of 23 rep¬
an
resentative
with housing and
with
the
revisions
this
concerned
leaders
home credit,
recommend
directive
to
and
procedures for
new
of
phase
conclusions
Committee's
The
private industry/
will
recommendations
doubtedly be used
as
un¬
guide for
a
housing
new
itself,
upon
crutch of government.
accept the challenge and
our
responsibility so far as
the
We must
meet
it is
possible to do so.
anti-inflationary efforts of
The
urban
re-
insurance
of
such loans by FHA.
believed
to
for
-/Plans
saving.
improving,
of
production
of
This, too, is a reasonable
to
as
require this means
and statesmanlike method of pro¬
viding for
and
of
a
new
secon-
mortgage marketing corpora¬
ary
tion.'
*
of
loans
house
to
low-income families.
Coordination
of
by
of
Committee, who
up to industry and
is
it
housing and the extent
for
that
states
He
tem.
the
in
and
home
building,
especi¬
those
concerned
programs
and
be
mendations included in the report
united in
and
fish
mittee, will undoubtedly be
place in
the
Administration
new
part
since
the
in
particularly
one
invest-,
funds, should
common
endea-/
aims
desires
and
have
no
free enterprise society.
a
hous¬
What to Look For
ing bill; and we shall then per¬
haps have the greatest change in
our
housing and home fi|nance
program
the
of
the good of every individual
the good of the country. Sel-^
vor,
of the President's Advisory Com¬
a
all
with the
tions of
processing VA loans.
these, and other recom¬
in
take
government,
ment of institutional
Some of
to
all within the realm of
conservative free enterprise sys¬
leaders
functions of FHA and VA,
wishes
it
risk
the
ally in respect to technical func¬
of
Banking
Senate
the
are
Capehart,
Senator
this field,
a
100%
40-year,
views
constructive
Currency
need
formation
healthy and prosper¬
a
America.
finance to determine for itself the
30-year FHA loans.
The
the
accelerating
believes
housing.
re¬
cept and until there is such a cut¬
back
in
the
home
construction
chairman
existing
are
by his expressed opinion
that
down-payments
on
FHA
loans should not be lowered, ex¬
ous
worth
be
Wolcott
vealed
homes.
and
depend
than
rather
tion
field
highlights of this study in¬
home construc¬
credit for needed
Representative
economy.
and
acts as competition
He looks
private industry to furnish*
regards such
with
national
our
private
urges
to
solution.
formation
of
the Home Owner's Loan
in
As
ful
a
Coming Months
the
result of long and thought¬
deliberations
Home
and
by the Housing
Agency and
Finance
Corpora¬
tion in 1933 and Federal Housing
the President's Advisory
Administration in
tee,
1934.
During the tenure of the previ¬
of
new
the
Commit-,
developments as a part
President's
program
are
ous
ministration
will
continue
to
be
deeply committed in this field of
housing and mortgage credit.
As
an
indication of the govern¬
estimated that 20%
ard.
casioned
States, little in¬
Financing home construction in
further decline this year, amount¬
cause
United
thing Stands out crystal clear.
There
bond offerings in ment's position on this subject,
down. 10% from the Mr. Cole has indicated that there
now
more
than
40-million
year before; and'there is every are
indication that there will be a nonfarm homes, of which it is
than
the
again
sound
were
mortgage
In
should
Corporate
1953
offs,
of
for
the
capital issues.
1941 aremow
almost ceased.
1954
in
Administration, housing and likely prospects in 1954.
One of them is the possibility
home financing became a major
of supply and demand. The mort¬
political objective of government. of evolving an improved distribu¬
gage security will be analyzed by Because of
its great importance to tion of mortgage credit for areas
lenders more closely as to quality,
many millions of people and be¬ of need to supplant Fanny May.
need, and whether or not those cause of the effect of the home I believe a sound
plan should be
who seek credit can justify the
construction industry on our na¬ developed, but for use only when
financial burden they contemplate
tional prosperity, it will continue investment funds are unavailable.
undertaking.
to
occupy
an
exceedingly A secondary mortgage market'
The easing in the money market
important place in the present should not be established for the
resulted, at least in part, from the Administration policies.
The Ad¬ purpose of direct government
the gold mines that were active in
producing, and that
.exploration for new deposits has
unfold
plans
clearly reflecting the forces
more
ing to as much as $5 billion.
Capital needs will be less
redemptions and pay¬
amounting in ' 1953 to more
$10 billion, is added to the
amount available from the growth
monetary
com¬
volume for
exceedingly
Slum clearance
af¬ devlopment, with
1953, savings in mutual sav¬
ings banks increased $1.8 billion,
share accounts in savings and loan
associations increased $3.6 billion,
and life insurance policy reserves
increased
$4.5
billion.
The market stabilization activities of
growth in savings, as reflected by the Federal Reserve System and
all of these sources, totaled nearly from the decline in the volume of
icy,
loans
in
mortgage
in
part
of apparent that the
Department
the
increase
purposes.
Advance
the
housing and mortgage credit, one
projects.
building
The
With the return to more stabil¬
''Savings" are traditionally ized conditions in the money mar¬
the primary source of funds for
ket in the last half of 1953, there
mortgage investment.
was a rapid return of investment
The volume of savings now on demand for
good mortgages. The
deposit in banks or held by other year 1954 should see this demand
types of thrift institutions is very continued, with ever growing re¬
large and has continued to grow liance on sound building construc¬
at a rapid rate, indicating a per¬ tion programs and on conditions
ample
be available
volve:
ture,
sistent
for
mitments
VA
Funds
Because
regulated rate
attractive.
more
at
of
strength
system.
required .rate
A plan for loans and grants pro¬
Similar
suggests that to con¬ set by directives of governmental
the forces of demand agencies did not reflect true mar¬ viding for rehabilitation of areas expressed
construction,
great
gold
mortgages
on
existing 4%%
rate
and
and supply, the actual building of ket conditions at a time when in¬
ing, however, there seemed to be; new homes this year will decline terest ratep were changing in all
a
feeling of optimism in the air slightly. This decline will be off¬ other areas. Until rates stabilized
at the close of the year, particu¬
set by the expected
larger vol¬ during the last half of the year,
larly in South Africa.
There, in ume of dollar outlay for home the secondary mortgage market
spite of declining margins of pro¬ modernization
and
repairs
and remained greatly confused.
fits in most of the operations, the
improvement of existing struc¬
Interest
rates
are
subject to
output of gold from the many new tures,
especially
for
the
new change and should always be per¬
and
daring
enterprises
in
the smaller homes which must be ex¬
mitted to reflect a free market
Orange Free State was beginning
panded to accommodate growing based upon the basic economic
to become a significant factor and
families, and also for programs principles of supply and demand.
the importance of the additional
which are being set in motion in In like
manner, the situation in
revenue
to
be derived from
many cities for urban redevelop¬
the mortgage market in the early
uranium was becoming better ap¬
ment
and
the
improvement of months of 1953 demonstrated the
preciated.
With these two en¬
blighted areas.
need
for flexibility
in interest
couraging factors, a future output
rates on government - insured and
at least equal to the record to
Sources of Mortgage Investment
guaranteed loans to meet chang¬
date seemed assured for the
African
yield
policy.
ditions
South
the
the Administration's
Interest Rates
important
estimating
form
reasonable
con¬
new
bonds, which in turn will
on
make
strator of the
of
continue
the Government to do¬
mestic producers.
If the price of
gold were raised, a foreign holder
of gold might be willing to meet
the
domestic
quotation, but
I
paid
It
other
rates
M.
artificial
facilities to accompany support.
new home building, in the form of
Substantial amounts of savings
public services, stores, churches, can and will be directed into
recreational
conveniences,
and mortgage
investment — provided
economic
situation
permits
roads, to keep up with the ever the
expanding residential population. and sound loans are available at
types
to be
subsidized
the
It
war.
for
need
that
conse¬
quent decline in new capital is¬
will result in lower interest
the
12
the
since
the
reflects
also
the
and
the coming months as a means of
soon
Mortgage Credit in 1954
mushroomed
indication
every
conditions
sues
the
nomic
As
is
There
these
It should be taken
orderly manner so
ly depleted.
re¬
favorable de¬
most
a
up
The Challenge to Private Industry
countries and from our standpoint
garded as
velopment.
build
to
base.
tax
a
incentive
capital to broaden such
stock has been even more serious¬
mining
companies should
prosper
in the traditional way price of gold.
gold
the
lessen
borrowed
the
Gold Price and Gold Standard
move
change in price of
no
metal.
the
of
larger
depreciation,
be¬
oc¬
by the higher cost of
assets, and the completion of
projects subject to accelerated
new
amortization.
Inventory contrac¬
tion could reduce working capital
needs by several billion dollars
above this year,
and the elimina¬
tion of the excess profits tax
will
The
are
estimated
substand¬
value
of
all
housing is nearly $300-billion, an
amount many times greater than
the whole hoard
ment
gold.
of U.S.
The
Govern¬
Administrator
lending or to create inflationary
credit, because government offi¬
cials have rejected inflation
as
a
matter of government policy. Now
is no time to create any agency
subsidized by government'or.
stimulated by private capital to
make
and
moral
cial
credit
easier, and business
banking leaders who have
and
ethical interest
welfare
oppose any
should
in
a
so¬
nevertheless
proposal which makes
for unsound mortgage credit.
A number of proposals for some
believes that the government has
a basic responsibility to preserve
form of supporting the secondary
and
but for
housing by the American people,
mortgage market have been made;
the most part, they seem
to indicate in reality a primary
in
a
with
protect
manner
which it
this
as
investment
careful
preserves
in
as
that
market.
the
eco¬
plan which
We
are
we
working
believe
can
on
a
solve
Number 5296
Volume 179
.
.
The Commercial and Financial Chronicle
.
I
the
problem of bringing mortgage
credit to all
Although
mortgage
credit
is
readily available today than
more
the
was
case
another
in
our
cated
of
rates
interest
with
the
fore
strings
purse
interest
rates
tiex-
ue
try,
the size of its role has been
decreasing. In 1953 the
source
of
electric
laws of
energy was roughly 25%
hydro and 75% fuels. Only ei|ht
years earlier, hydro accounted for
a
36%
accordance
with
the
normal
supply and demand. Such
policy might even do away
with the necessity for a secondary
mortgage market and would help
the
cure
problem
of
furnishing
adequate mortgage credit.
The
notable
"accord"
between
the Treasury and the Federal Re¬
in
Board
serve
such
March
policy
a
into
1951
effect
with
respect to U.S. Government
ities.
Why should
"accord"
secur¬
the
not
same
be adopted
with respect
rate of interest
the
to
put
regulated
mortgage loans?
on
Conclusion
'
We all need tb support the Ad¬
in
its
serious
en¬
ministration
deavor
to
sound
the
pursue
and
policy
a
honest
dollar.
It
a
is
only safe
of
way
way to protect our
against inflationary
which have grown up
life
pressures
strongly in recent
so
of
years.
ownership, by every one
financially capable, is an ideal sit¬
and
for this
country to pursue;
should foster it, but al¬
we
within the limits of
ways
sound
a
economic
policy. Lenders need to
themselves in a position to
keep
grant all the credit that is needed
for sound
total.
is
It
quite
less
than
20%.
The
balance
to
if
needs
supply
they
our
to
are
There
these
is
agreement
no
geologic experts
reserves
to note that
whether
as
But
are.
even
to what
is
it
reserves
pump-priming
quate for the next 2,000 years or
only
the
for
recent
the
there
is
300
next
judgment
ward
extensive
credit.
the
or
granting of long term
an
adjustment is re¬
If
quired because of normal business
changes, it should be orderly. If
credit
is
face of
to
constantly eased
in
the
lessening demand, in order
maintain
high
production
levels, then the adjustment period
will not be
orderly but delayed;
and when it does
occur, as it must,
it will be much more
severe.
Our
objective must be to sup¬
port strongly a sound and honest
dollar and
ing
a program in the hous¬
home
financing
field
and
which
is
good for the builder, is
good for the buyer, good for the
lender, and above all good for the
national welfare.
has
are
with
for
the
years
of
parts
situated
this
country
has
thus
next
avail¬
are
the
\jlmrld, of
general
which in
—
with
favored
been
relatively
distributed,
plentiful sources of economical
energy—will begin to face ma¬
terially increasing costs in coming
decades as
the best deposits of
the
fuels
main,
But
exhausted.
are
this
of
because
in
coun¬
try's generally favorable situation
with respect to fossil fuels, and
Wiesner
with
Kans.'—
has
Frank
become
N.
&
Com¬
National
Commercial Atomic Power Still
Building.
Mr. Wiesner
with Edv/ard D.
merly
was
Jones
are
talking about
Schirmer, Atherton
PORTLAND, Maine
D.
Chronicle)
—
Brewster
Doggett has become associated
with
634
Schirmer,
Atherton
Congress Street.
was
&
Co.,
Mr. Doggett
formerly with Chace, White¬
side,
West
A. C.
Allyn & Co.
&
Winslow,
Inc.,
we
power,
power
to be pro¬
duced
perhaps,
day,
Financial
atomic
about
talk
and
oil
or
tric
(Special to The
en¬
sure
we
coal
Joins
what'is the status of
&
Co. of St. Louis.
will
power
in
which
utilized
be
continue
mostly
generated
bines
by
heat
to
steam
energy
be
tur¬
will
to
generate
steam,
will drive turbines, which
which
will
turn
in
or
uranium-233
for
gas.
That is, elec¬
drive
the
electric
—to
the same
of generators we have today
produce the electric power.
The
chief
generators
kind
—
basically
difference
is
that
the
fuel will be atomic fuel.
With
Goodbody & Co.
(Special to The Financial Chronicle)
Last
summer,
mittee
on
the
Atomic
Energy
of the
Congress held extensive
on
the
regard to the
<
Forming Zock, Shields Co.
Joseph A. Zock, member of the
New
at 14 Wall
March
be
a
Exchange,
Shields
J.
will
and
form
Shields & Co. with offices
Zock,
•
Stock
York
Anthony
1.
Street, New York City,
Sara M.
Zock will also
limited partner in
the firm.
possibilities of developing atomic
what the various sections
of our society thought about the
power;
problem; and, particularly, what
private industry might be able to
to develop atomic pow&r and
do
bring
These
that
not
about
its
peacetime
use.
hearings made rather clear
commercial
just
around
atomic
the
peacetime power development.
the United States where
abundant
and
economical
available.
fuel
supplies
are
...
Technical
for
vessels
war
of
the
tlie
power
reactors
naval
development.
could
in
power
the
home,
on the farm, and in industry—ex¬
cept for one thing, the item of
use
Problems
Must
the
still
unsolved
of
many
problems,
we
there is simply a be¬
wildering number of possibilities
in reactor design, each of which
produce
results
nomic
technical
same
with
different
eco¬
advantages. The attractive¬
of
ness
the
but
each
and
evaluation of the
negative
the
probably
are
impossible of assessment until
tual
ac¬
systems have been built and
operated.
The
solution
main .technical
confront
of
problems
will
us
the
which
probably not be
achieved except in the process of
building and operating actual re¬
actor systems. From this stand¬
point,
the" significance
of
the
Atomic
Energy Commission's
an¬
nouncement of its decision to pro¬
ceed with the design,
tion,
kw
and
operation
so-called
construc¬
60,000
of
PWR
the
reactor
is
in
that
a start has been made
along
long road ahead of achieving
a practical reactor
capable of pro¬
ducing electric power for peace¬
the
time
use
on
competitive basis.
a
to
has
al¬
clear
the
atmosphere, so to speak, in atomic
policy development. If we
can
continue
now
the
tional
and
forward
international
Energy Commission put the mat¬
ter very
succinctly in his remarks
months ago:
some
"The naval atomic energy units
do not have to meet present com¬
petition
course,
tactical
with
diesel
because
of
fuels,
other
of
great
advantages of atomic
plants.
These include the
power
ability to
operate
submerged for
long intervals, and to cruise at
speed for many thousands of miles
without
refueling.
On the other
hand, civilian atomic power must
justify itself by being competitive
in
cost
with
present
power
sources."
So
that, while atomic
been proved, atomic
that can take its position
we
see
has
power
power
in the market place and meet the
of
competition with other
test
forms
of
While
it
is
is
likely to be
come, that
to
that
mean
work
not
time
some
not
does
is another mat¬
energy
not
a
going
great
deal
to
help
on
develop it. Research and develop¬
ment looking toward that end are
of the Na¬
at
BrookRidge, Ar-
proceeding
at many
Laboratories;
Knolls, Oak
tional
haven,
gonne; and at locations like Bettis
Field
and
the
National Reactor
Testing Station at Arco, Idaho. A
number of impressive foreign
under way: In Eng¬
land and in Norway, reactors are
projects
in
are
of construction having
process
their
as
objective
of
ment
atomic
the
develop-r
for ordi¬
power
civilian use. The last session
of Congress authorized the Atomic
nary
Energy
to
Commission
to
spend
up
$7 million appropriated for
re¬
search
and
beginning
land-based
But
development for the
of construction of
a
reactor
electric
no
this
is familiar with
reactor
first, reactor
—
—
or
would
any
be
electric
power
proaches in cost
power
produce
by
ordi¬
production.
power
who
for
reactor technology believes
power
that
one
also
more
Why
There
conventional
is
are
this
still
so?
a
other
able
that
to
ap¬
produced
means.
Very
simply:
great many tech¬
design, in reactor vessels—
that is,
ing
the shells
the
atomic
reactors
or
—
drums hous¬
in
fuel elements,
design
of
heat trans¬
fer systems, fuel element
Nations
International
to
Atomic
Agency
under
the
United
Nations
is
straightforward
whose
create
of
the
most
promising
types
effect
and
will
Energy
aegis
of
of
one
may
even
have
-
commercial
been
operation
put into
in special
areas.
But
this
again
must,
we
in
prospect
felt
atomic
power
on
atomic
of
the
bound
to
be
almost
during the next 10
slight during the
with
work
still
it
remains
will
be
whether
be
to
and
—
to
materials
the
to
life, fuel
before
done
possible
to
determine
importantly
more
when—atomic power
can Jake
the
forms of
economic
test
of
other
ehergy in areas, like the
States, having these in
'
abundance.
'
*
\
'
■
T
Dillon, Read &
f
C >l\
'
-
Dillon, Read Group
Underwrite
r
*
{
[
d
Offering
Co.
Inc.
heads
Interna¬
Co. to its
common stockholders of
272,500 shares of additional com¬
stock.
mon
rants
The
which
subscription
war¬
f6,
expire Feb.
1954,
pre-emptive
nghts, to
develop atomic power
subscribe for the new stock at
applications to the needs of agri¬
$22.50 per share at the rate of
culture, medicine, other peaceful
one share for each 14 shares held
activities, and, in particular, to
of record on Feb. 1, 1954 and
give
provide electrical energy in the
tional
Atomic
effort
Agency,
joint
a
to
power-starved
is
in
basic
of the world,
areas
idea
arising out of
broad
vision
and
deep
under¬
standing
of
the
sore
need
of
humanity in these fateful, times.
a
The
implementation
will raise
of
this
numerous
in
division
of
holders
effort
and
ject
cessfully solved
to
be
suc¬
prerequisite
to carrying out the proposal.
as
a
But the great value of the Pres¬
to
taken
additional
at
the
right to
price, sub¬
same
allotment, for shares not
exercise
upon
of
emptive rights.
The
to
use
the
a
group
of
soliciting the
subscription
utility
pre¬
^
Inc..,\yill act
dealer-manager of
securities dealers in
exercise of
the
/
Dillon, Read & Co.
as
benefit, in location of operations,
all of which will have
the
subscribe
idea
complex and
difficult problems in national se¬
curity,
evidence
warrants.}-/,"7
company- tproposes
the proceeds of the sale of
new
bonds
stock
common
$12,000,000
first
which
and
of
mortgage
being placed
new
are
7
ident's inspirational idea is not in
the direct and immediate contri¬
privately through Dillon, Read &
Co. Inc., for the construction of
bution it may make to reduce the
time within which atomic power
additions and improvements to its
may
become
That,
as
take
time
a
competitive reality.
I pointed out before, will
in laboratories, in
—
shops, in the erection and opera¬
tion of actual experimental
re¬
That
actors.
ally
be
time
materi¬
cannot
lessened
merely by
national
action
plementing
sup¬
by
international action in these fields.
The
President's
tion has
brake
in
been
on
the
helping to put
and
a
speed-
carrying
hydrogen
bombs
that has
been bearing down on the human
race.
In deemphasizing the war¬
and
in
time
emphasizing
the
peacetime use of the atom, the
President
has
not
only cleared
policy on
atomic
de¬
velopment but has raised a vision
of
help and encouragement for
the poorer—and particularly the
poorer
world.
hope,
will
Thus,
we
to
live
dependent
countries of the
by reviving their
—
help
on
strengthen
as
free
members
of
repay
for
company
estimates
construction
year
ing
bank loans
purpose.
that
it
their
and
a
in¬
free
The
will
approximately "$23,400,000
spend
for
that
during the fiscal
ending Aug. 31,
$14,400,000 for
1^4,
includ¬
electric
new
generating facilities and .$8,600,000
transmission
for
distribution
and
facilities.
The company is
principally
en¬
gaged in the generation, distribu¬
tion
and
in
territory which includes the
sale
of
electric
energy
atomic
and
power
or to
obtained
unique contribu¬
titanic
gathering' train
properties
a
Texas
the
Oklahoma
and
South
Panhandle,
Plains region
of Texas
and the Pecos
Valley
Mexico.
population
The
area
in New
of
the
territory served is approximately
731,000. For the 12 months ended
Nov.
30,
ported
1953
the
company
total' operating
re¬
revenues
of $30,323,533 and net income ap¬
plicable to the
$6,390,336
common
stock
including $725,000
traordinary
Federal
income
ofi.
ex¬
tax
reprocessing, valving, controls (the
world. These conditions which the
saving resulting from accelerated
and
list could be greatly extended) be-.
President's speech has so
amortization.
strongly
t
1
its
position in the market place and
meet
who,
fissionable
involved
only
ensuing five
In the decade after that, itj
may pick up to some significant.
figure. But a great deal of work
years.
an
investment
banking. J group
in which is
underwriting an offering
kept
by Southwestern Public .Service
world,
contributed jointly by the govern¬
ments
•
en¬
negligible
years and
a
matters, have been
be
brought
together
apart,
of
sources
in the United States is still
ergy
long time. The proposal that the
scientists
see
perspec¬
Assuming only normal dif¬
ficulties and disappointments in
the developmental
phase that we'
are
now
entering, the effect of
ideas
for
to
try
clear
a
tive.
those
timely
be
the
of
such reactors will have been built
in
large experimental; sizes and
their
lessons
evaluated.
A
few
an
national
nical problems to be solved in re¬
actor
United
na¬
action
in power reactors.
It would appear almost inevitable
that within this decade a number
the
As the Chairman of the Atomic
with
of constructive
processes
United
The President's proposal before
General
Assembly
of
the
The Cost Question
idea
much
power
economic
positive and the
features
done
thus envisioned, it should be
pos¬
enjoy a decade of fruitful
that
can
ready
healthy
developments
attempting to solve
find
President's
to
sible to
Be
Solved
In
The
requisites
Jf
indis¬
is
power
corner
of
peacetime
nary
Com¬
Joint
hearings
subject of atomic power
han
has
become
affiliated
with
and published a full account of
Goodbody & Co., 1 North La Salle these
hearings. The object-of the
Street.
He
was
formerly
with
hearings was to determine what
Rothschild & Company.
the facts were with
CHICAGO, 111.—John T. Calla¬
for
of
production by atomic fuel?
you all know that when
am
Other
design
of these reactors
be put to work to generate
here for
I
will
process
ter.
by presently known means
and technologies, but substituting
for¬
uranium-235 or plutonium or some
Bank
-one
energy.
ergy
M.
associated
Warren
Citizens
pany,
Paul
in
coal,
we
are
not
likely
to
benefit > from
atomic
power—atomic fuel—as soon as
other parts of the world, which
are
not so
ideally located with
respect to conventional sources of
particularly
Now,
(Special to The Financial Chronicle)
are
different
which
that
Any
of
not
so
fortunately
respect to conven¬
far
well
fossil
somewhat
a
than
the
among
point where the energy they pro¬
duce is competitive with conven¬
tionally produced electric power.
I should
reemphasize that this
avoid
to
to¬
Long Way Off
EMPORIA,
important
If economics.
years.
veered
tional fuels. Indeed, even parts of
fairly
of
figure, at least
disagreement that re¬
course,
Joins F. N. Warren Co.
•
very
lower
no
Other
housing
activities
to
ade¬
hundred
facilities and good credit does not
lie in the inflationary effects of
as
are
able and have been proven.
ample
well
disagreement is
the
several
to
is
are
pensable
practical reality.
a
fostered
actors and atomic fuel down to the
any
Nautilus.
ture when the need
may be
greater.
answer
It
be
can
propulsion
adequate
The
from
come
conventional fuels?
re¬
be done before commercial atomic
power
will
energy
serves
'
hard, very expensive,
time-consuming work remains to
very
is, we can produce power from the
be supplied by fuel—most of it
fissioning of atomic material —
by the fossil fuels, coal, oil, and natural uranium, or U-235 en¬
gas;
and some relatively small riched
uranium,
or
plutonium.
part, perhaps, by atomic fuel. Technically this has already been
In
recent
years,, oil
and
gas accomplished. A reactor adequate
have made
inroads in the fuel to drive an advanced design sub¬
market
theretofore
enjoyed by marine which is well along to¬
coal.
In
the
long-term picture, wards completion, the USS Nau¬
however, these are transient oc¬ tilus, has been built and is oper¬
currences. As oil and gas supplies
ating experimentally at the Na¬
decline, coal will again pick up tional Reactor Testing Station at
more
and more the-fuel burden Arco, Idaho.
The keel of a sec¬
ond submarine, the USS Sea Wolf,
dropped by them.
has been laid; and it, too, will be
Do
we
have
adequate
coal
driven by an atomic power plant
reserves that can be economically
burned
bring the cost of
can
especially true in most of the
economically important areas of
confusion about the technical
that
by 1978 the percent feasibility of atomic power. Atomic
generated by hydro is going to be
power in that sense is here; that
development within the
country, both now and in the fu¬
even
cer¬
tain
among
Home
uation
of the
that
we
is
Appraisal
are
have long advo¬
economy
that
FHA
on
ible and be permitted to fluctuate
in
i
10
page
Atomic Power—A Realistic
ago,
who
Those
loans.
VA
concerned
of
from
great need is a flexibility
the
and
months
some
35
•
Continued
of need.
areas
(599)
*
I
>3
The Commercial and Financial Chronicle
(600)
•
1
..
Thursday, February 4, 1954
.
:
\
I'
The following statistical
Indications of Current
latest week
week
Business Activity
INSTITUTE:
steel operations (percent of capacity)
IRON
AMERICAN
Indicated
STEEL
AND
Crude
Latest
Month
Week
Week
Ago
on
£1,762.000
Feb.
92.7
1,793,000
*1,802,000
(bbl.:. of
average
Jan. 23
6.292,300
6,252,800
6,332.500
1:7,013,000
6,968.000
7,011.000
7.031,000
24,241,000
24,163,000
25,192.000
23,154.000
2.753,000
2,836.000
2,505.000
2,759,000
Jan. 23
10,564,000
10.323,000
9,952,000
11,121,000
Jan. 23
8,296,000
8,923,000
8,702,000
8,771,000
oil
fuel
(bbls.)
(bbls.)
—
Stocks at refineries, bulk terminals, in transit, in pipe linesFinished and unfinished gasoline (bbls.) at
output
oil output
Kerosene
(bbls.)
Distillate
fuel
Residual
oil
fuel
ASSOCIATION
(bbls.)
at
(bbls.)
at
Jan. 23
167,781,000
165,551,000
156,030,000
145,379,000
———
Jan. 23
24,034.000
25,873,000
30.251,000
23,890,000
-—
Jan. 23
91.401,000
99,675,000
117,231,000
85,179,000
Jan.23
47,247,000
49,066,000
49,810,000
46,918,000
—
CONSTRUCTION
construction
and
State
Jan.23
617,226
619,871
480.978
697,515
Jan. 23
592,947
582,053
518,935
663,234
and
municipal.
Jan. 28
$171,054,000
$173,545,000
$153,197,000
$599,911,000
Jan. 28
78,535,000
103,189,000
52,193,000
453,422,000
146,489,000
Jan. 28
92,519,000
70,356.000
101,004,000
Jan.28
63,389,000
51,844,000
89,087,000
102,500.000
Jan.28
29,130,000
18,512,000
11.917,000
43,980,000
Federal
AMERICAN
coal
coke
(tons).
lignite
and
(in
output
steel
Finished
550,000
Jan. 23
Not avail.
Not avail.
51,200
100,800
lons
Jan. ju
INDUSTRIAL)
AND
—
DUN
Natural
Benzol
Jan .3
lb.)
tin
(New York)
at—
$56.59
$56.59
$55.26
Jan. 26
$27.67
$28.50
$30.17
$42.00
29.675c
28.800c
29.150c
34.925c
85.500c
84.000c
121.500c
13.000c
13.000c
13.500c
14.000c
Jan. 27
12.800c
12.800c
13.000c
13.800c
Jan. 27
9.500c
9.500c
10.000c
12.000c
■
—
.
2
93.25
98.46
96.66
95.79
2
107.93
107.44
106.21
108.70
Feb.
2
113.12
112.37
110.88
112.19
Feb.
2
110.15
109.60
103.16
110.70
Feb.
2
107.80
107.27
106.04
107.98
Feb.
2
101.64
100.98
100.16
103.97
Wph
Feb.
2
105.69
105.17
104.14
106.39
Feb.
2
108.16
107.80
106.56
108.34
Group——__—
Feb.
2
110.15
109 42
107.98
111.25
Feb.
2
2.62
2.61
2.74
2.80
Indicated
Feb.
2
3.28
3.31
3.38
3.24
corporate
Feb.
2
3.00
3.04
3.12
3.05
Feb.
2
3.16
3.19
3.27
3.13
Feb.
2
3.29
3.32
3.39
3.23
Feb.
2
3.65
3.69
3.74
3.51
—
Aaa
<
i
Aa
'
A
Baa
Group
Utilities Group
Railroad
Industrials
Group
INDEX
COMMODITY
PAPERBOARD
Orders received
(tons)
Production
(tons)
Percentage
of
activity
orders
of period
at end
(tons)
(barrels)
(barrels).
183,100
*8,690,106
9,691,074
6,726.850
6,647,725
214,973,000
216,971,000
221,649,000
194.108,000
196,717,000
202,044,000
20,337,000
20,216,000
33,000
33.000
19.806.000
20,757,000
19,948,000
10,883,000
9,641,000
12,212,000
238,122,000
237,196,000
250,686,000
7,545,000
10,174,000
3,123,000
...
...
imports
(barrels)
stock
domestic
and
19,562,000
'
43.000
export
(barrels)
AMERICAN ZINC INSTITUTE, INC.—Month of
2,000
smelter output,
Feb.
2
3.41
3.44
3.50
3.37
Feb.
2
3.27
3.29
3.36
3.26
Feb.
2
3.16
3.20
3.28
3.10
Feb.
2
419.1
41S.0
413.3
405.7
Jan. 23
199,153
223,396
145.118
202.039
Jan.23
243.978
243,315
200.597
235,985
Jan.23
94
91
Jan. 23
342,885
390,294
94
77
313,963 1
Stocks at
end
of
107.35
Jan. 29
orders
of
Odd-lot sales
Number
orders
of
—
26.112
24.661
30.392
Atlantic
INC.—215
462.564
32.199
Jan. 16
764,041
863,821
750,883
918.371
Jan. 16
$34,789,631
$38,131,438
$31,713,691
$39,017,000
-Jan. 16
25,098
24,156
28.670
29,446
short
sales
-Jan. 16
228
234
139
133
Customers'
other
sales
-Jan. 16
24,870
23,922
28.531
29,311
short
other
Customers'
-Jan. 16
708.567
668.498
846,235
806,943
sales
-Jan. 16
8,143
8.092
4.915
4,698
sales
-Jan. 16
700,424
660,406
841,320
802,245
-Jan. 16
$29,045,435
$27,318,721
$30,885,477
$33,945,871
value
sales by
Round-lot
208,970
salei
208,270
304,640
$14,836,020
$16,918,929
$15,610,040
CITIES—Month
105,141,783
78,063,194
29,452,475
46,213,936
29,368,857
67,301,733
76,524,092
54,876,310
60,940,461
53,394,798
57,465,929
21,306,200
22,832,476
18,133,112
12,676,656
13,772,199
10,228,225
61,202,714
67,862,773
80,467,633
$372,858,042
$375,582,397
$329,947,867
....
;
United
York
States...
City
S.
.
York
New
of
63,797,755
(BUREAU
of
and
To
South
America
Europe
To
Asia
Central
(BUREAU
(net
(net
(net
464,52S
351,713
412,555
13" 176
51,960
8
MINES)—Month
tons)
of
Nov.
.
tons)
(net
DEPARTMENT
_
STORE
SALES
(FEDERAL
SYSTEM—1947-49
of
tons)
'net
Average
6,209,536
6,554,633
6,331,800
5,894,447
6,181,353
5,986,700
315,089
*373,285
345,100'
2,657,729
2,513,351
2,444,712
113
113
11S
193
136
198
RE¬
100)—
December:
Adjusted for seasonal variations
EDISON
364.889
242,494
4/712
coke
SERVE
247.206
~
(net tons)
Oven coke stocks at end of month
Without
tons)
tons).
tons)
OF
coke
Month
32,467,886.
297,479,981
tons)
(net
Production
Beehive
49,037,818
326,544,579
anthracite
America
(net tons)
inet
Africa
COKE
55,856,712
317,001,330
MINES)—
tons)
North
To
OF
Pennsylvania
To
To
City.
November:
exports
(net
seasonal
...
adjustment
ELECTRIC INSTITUTE:
Kilowatt-hour sales
Oct.
ox
Revenue
from
ultimate
to
1000's
consumers—
omitted)
ultimate
customers—month
Number
ultimate
of
HOUSEHOLD
customers
WASHERS
AND
LAUNDRY
SIZE
Oct.
at
(AMERICAN
—
MANUFACTURERS'
of
32,793,709
$580,12^,700
49,684,881
49,527,522
48,239,398
238.153
310,867
293,079"
31
IRONERS
29,279,108
32,450,142
$572,315,600
of
October
$521,061,800
—
HOME
ASSOCIA¬
November:
Factory
sales
Factory
sales
of
Ironers
(units)
10,105
11.666
19,724
Factory
sales
of
dryers
(units)
78,167
81,839
74,378
(E.
&
29.673c
29.651c
29.651c
24.200c
29.061c
29.061c
28.848c
28.848c
34.780c
13.500c
13.500c
13.500c
13.500c
14.125c
13.925c
METAL
washers
of
PRICES
M.
(units)
J.
QUOTATIONS)—
Average for month of December
Copper
:
pound)—
(per
Electrolytic
domestic
Electrolytic
export
refinery
refinery.
Lead—
Common,
JIThree
Silver
236,930
York
New
Common,
ttPrompt,
dealers—
shares—Total
of
Number
45,264
^
COAL EXPORTS
108.62
Customers'
Customers'
29,437
&
Central
Outside
...
Number of shares—Total sales-
DUN
-
Central
Total
New
(customers' sales)-
Odd-lot purchases by dealers
35,466
(tons)
—
Central
West
SECURITIES EXCHANGE
Jan. 16
77,352
87,160
Atlantic
South
SPECIALISTS
AND
period
VALUATION
England
East
ACCOUNT OF ODDON N. Y. STOCK
COMMISSION:
by dealers (customers' purchases)—
—
of
81,363
68.684
165,563
______
December:
Middle
STOCK TRANSACTIONS FOR ODD-LOT
DEALERS
(tons).
end
at
PERMIT
STANDARD
106.92
*107.44
75,830
63,924
180,620
2,000 pounds)
period
BRADSTREET,
1
INDEX-
(tons of
78,921
(tons of
TION)—Month
EXCHANGE
all grades
pounds)
Shipments
'
OIL, PAINT AND DRUG REPORTER PRICE
Dollar
172,100
7,937,000
(barrels)
consumption
all
Month
ASSOCIATION:
'
LOT
83,500
198,134
5,903,980
Nov.
(barrels)
Oven
AVERAGES:
BOND YIELD DAILY
Unfilled
4,462,100
48,979
alloy
of
(barrels)..:
products
Month
Feb.
Group—
Industrials
tL
27
Feb.
£®D
Group
Utilities
NATIONAL
output
imports
Increase
U.
AVERAGES:
—•—--——
MOODY'S
4.728.700
3,800,105
24.200c
29.625c
29.0G0C
*
—
Public
4.031,184
53,496
(barrels of 42 gal¬
output
Mountain
Jan
—'—■—
Average
Jan. 26
$56.59
85.250c
A
MOODY'S
4.376c
29.700c
Average corporate
Public
4.634c
Jan.27
U. S. Government Bonds
—
4.634c
Jan.
at
Aa
150
162
Jan. 27
—~
at
Louis)
St.
8,151,000
4.634c
_
BOND PRICES DAILY
Railroad
4,643,601
4,386,971
INSTITUTE—Month
Pacific
at
Louis)
(St.
(East
8,198,000
J a n. 26
Jdn-
refinery
Lead
including
tons)—Month
oil
crude
output
South
Jan.27
at
(New York)
208
233
Jan. 28
Domestic refinery at
Zinc
Ago
INSTITUTE:
December
products,
(net
gasoline
oil
New
&
INC
(per
8,916,000
8,855,000
Jan. 30
kwh.)
000
Electrolytic copper—
MOODY'S
steel
__
each)....
Unfilled
(per gross ton)
(per gross ton)
METAL PRICES (E. & M. J. QUOTATIONS):
Straits
STEEL
PETROLEUM
BUILDING
Pig iron
Export
Month
86
163
85
87
Jan. 23
Scrap steel
Baa
499,000
-
IRON AGE COMPOSITE PRICES:
Aaa
685,000
AVERAGE
(COMMERCIAL
BRADSTREET,
Lead
8,180,000
711,000
ELECTRIC INSTITUTE:
Electric
FAILURES
Year
Month
October:
of
9.210.000
8,175,000
Jan. 23
INDEX -FEDERAL RESERVE
= 100
SALES
STORE
SYSTEM—1947-49
EDISON
6,515,000
Jan. 23
(tons)
DEPARTMENT
3
of that date:
Previous
for castings produced
of
Total domestic production
Slab zinc
-A
are as
Latest
December:
Bituminous
Beehive
AND
stainless
therms)
<M
therms)
iM
and steel
Shipments of
Refined
—
sales
tons)—Month
'net
Crude
construction
S.
U.
Private
IRON
Steels ingots
ENGINEERING
NEWS-RECORD:
Total
AMERICAN
therms)
(M
gas
sales
gas
Domestic
(number of cars)
loaded
ENGINEERING
CIVIL
.—
AMERICAN RAILROADS:
OF
freight
Revenue
at™^.
oil
sales
gas
Mixed
6,491,750
Jan.23
————
therms J
iM
gas
Manufactured
Jan.23
(bbls.)
(bbls.)
Total
Natural
Jan.23
Residual fuel
of quotations,
cases
either for the
are
AMERICAN GAS ASSOCIATION—For Month of
2,202,000
Gasoline
Distillate
in
or,
Ago
gallons each)
Crude runs to stills—daily average (bbls.)
output
that date,
•
42
Kerosene output
production and other figures for the
cover
Dates shown in first column
Year
75.4
*75.6
£73.9
Feb.
(net tons)
PETROLEUM INSTITUTE:
and condensate output—daily
oil
month ended
Previous
tabulations
month available.
November:
Equivalent to—
Steel ingots and castings
AMERICAN
or
or
St. Louis
London
months,
and
(per
long
London
Sterling
New York
Silver,
London
pound)
(per
(per
Silver,
pound)
ton)
(per
long
ton)
13.300c
13.300c
13.300c
13.300c
£90.386
£94.217
£88.608
£90.351
85.250c
85.250c
85.250c
85.250c
Exchange—
(per
ounce)
(pence
ounce)
per
73.821d
73.821d
74.000d
74.000d
$2.81074
$2.81074
$2.81101
$2.81101
83.250c
72.577d
.
Sterling
.
sales
Other
Round-lot
STOCK
ROUND-LOT
TOTAL
EXCHANGE
208,270
304,640
236,930
344,460
216,600
339,090
MEMBERS
OF
Zinc
Ttzinc,
SALES
ROUND-LOT
AND
ACCOUNT
FOR
208,970
316,610
purchases by dealers—
ON
Tin
STOCK TRANSACTIONS
(SHARES):
JanJanJan.
Short sales
I
sales
—
Total sales
321.180
183.790
263,540
325,320
6.923.770
8.397,870
7.058,190
10,035,030
7,244,950
8,581,660
7,321,730
10,360,350
Total
of
Other
Total
sales
Total
-
sales
Other
Total
Antimony
(per
pound)
Antimony
(per
(per
1,052.910
fCadmium
(per
pound)
119.230
172,860
gCadmium
(per
pound)
__
__
sales
_
__
Total round-lot transactions
Total
Other
_
__
—
-
-
-
__
sales
LABOR
_
sales
WHOLESALE
-1
NEW
PRICES,
—
(1947-49
=
808,430
583,430
573,370
1,054.710
Cobalt,
958,670
679,010
692.600
1,227,570
Aluminum, 99%
9
201.770
187,410
199.260
297.230
Jan.
9
13,200
5,500
6.700
23,900
Jan.
9
262,730
143,610
157.590
354,260
Jan.
9
275,930
149,110
164,290
378,160
Jan.
9
299,245
341,700
300,960
358.587
Jan.
Jan.
9
32.000
23,300
56.050
uan.
9
378,694
223,297
211.510
413.249
Jan.
9
410,694
246,597
267.560
471,669
Jan.
9
1.209.805
1,272,100
1.250.670
1.708,727
Jan.
9
195,440
124.380
181.980
255.180
Jan.
9
1.449.854
950,337
942,470
1.822,219
Jan.
9
58.420
for account of members—
purchases
Short sales
9
9
_
Total sales
Total
tCadmium
750.450
95,580
__
Short sales
SERIES
U.
S.
DEPT.
1,645,294
1,074,717
1,124,450
2,077,399
foods
Meats
All commodities
•Revised
«s
of Jan.
1,
figure.
1954,
other than
,
farm
and
foods
,_i„
ingot
(per
pound)
pound)
(per
"Nickel
against the Jan. 1,
1953
basis
of
110.9
110.9
110.6
109.
Jan. 26
98.9
98.4
97.1
99
Jan. 26
105.6
*105.9
105.7
104.
Jan. 26
94.9
95.8
91.6
95
114.5
112
cru de
runs.
1117,547,470
114.5
SBased
_
tons.
on
114.5
new
annual
capacity of 124,330,410
tons
10.000c
10.000c
£74.301
£75.354
£73.835
£74.131
84.644c
83.318c
121.486c
83.644c
83.644c
82.318c
82.318c
120.486c
$35,000
$35,000
$35,000
$35,000
$35,008
$185,923
$185,923
$184,091
$184,091
31.970c
31.970c
37.152c
37.152c
$214,88537.970c
28.500c
28.500c
33.682c
33.682c
34.500c
29.000c
29.000c
34.182c
34.182c
$91,000
S91.000
$91,591
$91,591
35.000c
$90,008
$2.00000
$2.00000
$2.00000
$2.00000
$2.07500
$2.07500
$2.15000
$2.15000
$2.60000
$2.60000
$2.07500
$2.07500
21.500c
21.500c
21.500c
21.500c
27.000c
27.000c
27.000c
27.000c
$1.80288
$1.9764*
$2.15008
$2.40008
20.000c
24.500c
60.000c
60.000c
56.500c
$2:15000
$2115000
$2.60000
$2.60000
$2.25
pound)
figure.
tBased on the producers' quotation.
tBased on the average of
the producers' and platers' quotations.
§Average of quotation on special shapes to
plater.
^Domestic, five tons or more but less than carload lot, boxed.
§§Price for
tin contained.
**F.o.b. Port Colburne, U. S. duty included.
tfAverage of daily mean
Bismuth
(per
Revised
of
bid'and
where
ask
freight
Month
of
Production
St.
'at
ttDelivered
(BUREAU OF MINES)—
November:
(barrels)
from
Shipments
Stocks
E.
CEMENT
PORTLAND
morning session of London Metal Exchange.
Louis exceeds 0.5c.
quotation at
from
end
mills
of
(barrels)
month—barrels)
22.529.000
19,495,000
24.738,000
22,048.008
27,556.000
19,771.000
13,083,000
*10,049.000
8,823,008
97%
used
EARNINGS
SOCIATION
Jan. 26
Jan. 26
^Includes 599,000 barrels of foreign/
as
*
RAILROAD
products
Processed
—
plus,
100):
commodities
Parm
pound)
97%
Capacity
OF
Commodity Group—
All
Laredo
742,990
Jan.
pounds)
(per ounce)
150,240
Jan.
76
bulk, Laredo
pound)
Platinum, refined
floor—
purchases
Other
of
Boxed
708,790
__
transactions initiated off the
flask
9
__
-
Total sales
Other
(per
9
__
-
——
price)
Magnesium ingot
purchases
Short sales
U. S.
Jan.
__
10.000c
10.000c
1
ton)
long ton>__
1
min
99%
York
the floor—
(per
Straits
ounce,
__Jan.
sales
Other transactions initiated on
(per
New
specialists in stocks in which registered—
purchases
Short sales
long
(per
$2.80594
12.500c
pound)—
York
York,
Quicksilver
FOR ACCOUNT OF MEM¬
BERS. EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions
prompt
fAntimony
TRANSACTIONS
ROUND-LOT
(per
New
SSNew
Gold
Total Round-lot sales—
Other
London,
ttZinc, London, three montns
NEW YORK
THE
(Check)
(per pound 1—East St. Louis
Exchange
CLASS
I
ROADS
95%
103%
(AS¬
OF AMERICAN RRs.)—Month
t
November:
of
Total
operating
revenues
Total operating
Operating ratio
expenses
Taxes
--
Net
railway operating income before charges'
Net
income
after
charges
(estimated)—.—
832,363,043
657,496,445
78.99
934,303,702
693,896,298
74.27
908,014,704
661,245,458
$77,582,365
$112,698,177
$117,491,602
78.526,183
60,000,000
107,331,352
89,000,000
111,022,387
87,000,008
72.82
Volume 179
Number 5296
.
.
The Commercial and Financial Chronicle
.
(601)
Continued
from
5
page
For the
Observations
sional
entrant
actual
closing of 280.90.
with
•
•
Executive Committee: Milton
Boyce, Merrill Lynch,
Pierce, Fenner & Beane, Birmingham; Arthur
Stansel, Courts and
Company, Birmingham; James R. Hendrix, Hendrix &
Mayes, Inc.,
Birmingham; Julien Eliasburg, Selma, Ala.; Ernest
Armstrong,
Sterne, Agee & Leach, Montgomery; James C. Andress, First Na¬
•
split-fraction forecast only 10 cents off the
a
The
The breakdown of the returns on the
Dow predictions shows
that only 3% of the press entrants ended within
$2.50 of the actual
close; against 6% of the professionals and 8% of the
non-profes¬
sionals.
Four
percent of the non-professionals and 4% of the invest¬
ment professionals, but none of the financial
writers, came within
$1 of the actual close. Three percent of the professionals and
1%
of the non-professionals
actually came with 50 cents of the actual
Dow close; with none of the press
entrants, of course, hitting that
charmed circle.
success
inversely correlated
was
with
the 95%-fallen Western Pacific old
preferred ridden by a mutual
fund professional.
On the up-side of stocks, the press, was able
to come through with a first of
only a 10% rise,
against
dealer.
a
*
H
*
with
one
.
officialdom
that
winner
a
of
re-tabulation
the
second time that this
brought
the
us
of
"up-stock"
the
results
at
the
future
reveals
Worse
race.
catastrophe has befallen
shot-in-the-dark
our
of
still,
us
this
Averages'
the
as
the
is
the
Five years ago
us.
likewise
embarrassing blue ribbon (wrapped round
case
a
of champagne).
In
mit
defense
that
of
our
entered
we
purity
the
and
Warrants) for both
Average prediction,
submitting an unchanged price.
integrity, we sub¬
(the highly- leveraged Tri-
down
for the D-J
has
debt and
mon
ice
and
up
And
moves.
preserved
we
that
objectivity by
our
page
The company
51.5%.
owns
8
proved
the
Oil
is
engaged
gas
pany's 47,500
acres
properties
located in the East
Texas
is
I
from
quote
part of
it
National
our
is
with
letter
a
are
Field.
Net
amounted
to
a
of
,.
production
than
more
President,
dealer ads and 25% of
I think this is
ads.
all affiliates
In
an
The company operates
lines with appropriate storage facilities.
Although not engaged
directly
in
Arkansas
refinery
Fuel
distributor
words,
of the gros
on
is
of
at
nil
operations,
an
important
refined
petroleum
wholesale
and
boost
our
whom
thp
its
of
most
nrndnptc
affiliates
receive
to
participate
Suggestions
are
in
this
The
meeting
SMITH, Chairman
Smith
At
any
pany's
other
the
to
extensive
elected for
the
set
0f
assets,
that
ever,
the
riod
of
is
of
felt
that
acreage
a
good
is in
some
portion
areas
o
f
the
St
and
par-
company's
Marv
The
of
East
drilling
Texas
Recent
these
in
Parishes
deeper
engaging.
which would be
much
less
than
the
^Distribution activities
of Ar-
Fuel
centered_
are
in
mingham.
Treasurer—John
'
B.
Bank, Birmingham.
r
Cox,
/
Jr.,
Birmingham
in
in
571
of
million
about
..
•
*.
accom-
sufficient
were
and the general,
the
suburbs
has-
ago,
to
earning
little
building
ancl
appears to be
pessimistic than is
more
other
power.
at
East
Texas
to
National
company
make
it
be
to
them
Qf
based
are
ure
has
lion
in
1953
and
decreased
1948
the
conditions
and
the
in
to
proration
and
in
the
what
ap-?
its
reserves
unlikely that vastly im-
a
to
prove
can
few years and as the
these
of
the
housing
they leave
is being
demolished,
No
where they
quarters, the*
behind them*
into better
move
definite
figures
duced to substantiate
...
.
estimate
,
of
im~
veterans
point
be ad~-
can
accurate
an
,
U1
probable
.
^
housing,
starts for the year 1954 but with
|be
government interesting
itself*
definitely in the problem of houscircumstances
a
mil_
exceed those for 1953> event
th°ugh—for a time. at least—we
must go through this period of adwe
brought on.
excesses
in
pro-
on
dren
sjn_
a
or-
which
is
This fig-
from
1.6
mil-
reason
850,000 in
goes back to
existed
and
which
the
in
1928
number
took
place
of
in
The chil-
of those marriages are those
the past two or three years,
One thing is certain.
The
na—
jure and extent of this adjustment.
t
determined
h
bv
anr
Wl11. not he determined by any
are now availThey will be determined by
statistics which
able.
what is in the minds of the
ffenerallv
and
generally> and. p
consumers,
public,,
particularly
y
_
the,
during the next few-
months,
0f
marriageable
age
about 20
years later. These calculations are
accurate
enough but they leave
out of consideration entirely one
times
inclination of the
conserve
to
about
which
1933
marriages
At 16 y2 its shares
nine
varies
under
each of those two years.
some
Field
an
00'0
dina!ffamiiy
circumstances,
formation.
estimated
1953
earnings and at
only six times estimated cash flow
Heavy
£rom 750
new
This
ot
re*-
and in borrowing during
definite
parts
'Sn.
1954
£or
gje factor, dependable
gallons-
a
Housing
than
situations
*
segment of our economy
is of pr^ary interest to
vacant,
turning veterans and their families, were not designed to last
seri-
'
either-
are
left
or
Also, the Quonsett huts and
temporary
construction,
which
went up hurriedly all over the*
more
experienced
we
and
more
or
demolished
in order to accommodate the
1937,
more
old
land at the close of World War II
could
one
,
selling
The Vic-
reasons
which were con—
multi-family dwell-
lion' with most of the estin!!ales justment, which
bracketing 900,000 but an analysis ourselves by the
areas
50%.
to be
appears
some
'•
-
no
face
as
we
J
contrast to similar activi-
country.
pears
Trust
is
nnnimir
little
mQSt
rapidly growing
increase
income.
Secretary—George B. Alexander, Conville and Company Bir¬
but
one
h'"j°a s1arts
areas
confirm
ties
&
one-room
which
yond what is absolutely necessaryA great many
of them are
depres-
now
serious
as
a
and
a
we
1.929,
setback
a
are
develop-
other
and
stentfal
Pseem to
this enthusiasts attiTude
asset
Doe, Jr., Sellers, Doe
the
000 less than the housing starts
and with the circumstances^ 1952 but the private housing just outlined contributing to thestarts, considered by themselves, peed for new housing, it would
^£>e/)n y about J.'®1p
^ 55-2 not he at all unreasonable to an1952 because public hous ng starts
housing
starts for
aggregated about 36,000 as against ticipate that bousing starts to?
59,000 in 1952. The decline there- 1954 could easily equal or evert
the
to be
appears
of
of
of the most
holdings in Terrebonne, Iberia, St.
are
W.
ar**
a
temporary expedient,
being kept in repair be—
as
not
are
being
J™Jhon. The total was about 24,-
is
ings
years
stf^s ^n ^53
Arkansas Fuel has demonstrated
Vice-President—Weldon
widows*
career women,
into
verted
pe-
It
therefore,
Second
.
.
demolitions taking place at pres-
possibility
generate
what
this group is home
part of the company's operations,
Company,. Montgomery.
,
.
waiting for good incomes to gei
better
before
getting
married,
Their wants are no longer satia- N
plausible,
remote
a
could
out
and
probability
no
than
we
ultimate
warranted by the facts.
an
and
.
and
principally in Louisiana,
Mississippi, Arkansas, and Texas.
from 383 to
Shropshire
the down side.
on
household,
of
matter
improvement
reasonable
more
an
general
quite
wWch
the
unexplored
1afesUofryefhiedWproductJ
Shropshire,
relatively
a
and the young bachelors who
which
ltle wous,nff UUU00K
1952 sales oi rennea products rose
Xyoz
rose
Vice-President—Ogden
Company, Mobile.
is
always
discussion
r,™
located
kansas
First
the
this
a
of the most
Odess, Odess, Martin & Herzberg, Inc.,
isn't
There
aR the way
J.
We
excesses
assumption of
The
acreage
President—Lewis
Public
in 1949.
holding amounting to
368,000
acres.
These
are
ments
J
Birmingham.
or
in
moment
ous
com-
reserves
large
errors
here the consensus
also
Cox, Jr.
degree.
some
possibilities
B.
John
acreage
Martin
John
how
would have to be corrected. How-
because of the nature
has
company
Louisiana.
Ogden Shropshire
.
during the next few
failed to commit another
years we
considerably
are
true
1954:'
eoodl
indusJy ^,ith.
be
to
appears
low risk
time
have
com-
feel that the
many
reserves
This
were
75
without
and
values
ticularly
held
what
extremely
growth
a
ovfdo would
whatever
we undertake ent, for two
and
be very strange if tonan
sion
country.
meeting the following officers
roughly
prior obligations
this
on
this
al-
an
Friday night, Jan. 22, 1954, at the Birmingham Coun¬
In attendance were members from the entire state.
Association
is
superlative
equity of some
share after adjusting for
have
to
i
ASSOCIATION
valuPes fn
ment that when we have passed fied with
through this particular period of modations
maladjustment, we can look for-, some time
ward with confidence to a fairly migration
that
wildcat
Dealers
from
than
shareholders
exciting
Securities
at
In addition to these
B.
Te meantfrn^th^
offers
company
Turn in Business
of the East Texas Field.
Harold
c?Vi
m d
Consumers Can Call
ap-
understated
undertaking.
DEALERS
discount
reserves
its annual
Alabama
try Club.
year
SECURITIES
of
to be sell-
values
company's
pany's
Advertising Committee
Pershing & Co., 120 Broadway, New York 5, N. Y.
ALABAMA
oil
mat-
a
other oil company. Tak-
Actually,
National NSTA
i
greater
giving
in order for affiliate advertis¬
HAROLD B.
As
its present price
barrel and natural gas reat
four
cents
per
MCF,
a
$35 per
ing chairmen.
May I hear from you?
of
reserves
extensive.
at
a
oil
all
year 6%
son dealer ads and 10%
of the gross on non-dealer
ads, with no quotas.
This should make a great year for all our
affiliates
at
pear
this
i
mansions,
company s
fact
serves
sales."
realistic
a
i
o
and
frnm
purchases
gas are
of
the
commercial
be
nVi
ci i
retail, protracted period of sound rather taken many of them out of the.
nrimarilv
in
the
southern
and' than synthetic prosperity. No one market for small urban apartsoutheastern areas of the country. could possibly quarrel with that ments.
A close affiliation is maintained
general assumption but it must
Another factor which has been,
with Cities Service to whom the be
remembered that here in given very little consideration iscompany sells a major part of its America we live our lives in the
the unusually large number of
ing
additional incentive for
and should
other
40%
our
of
■
.
in
ing lines and 315 miles of trunk
cents
Phil
6
going to view the continued publication of layoffs in industry at
the rate of over 400,000 a week,
Everyone seems to be in agree-
most any
(Amos C. Sudler & Co., Denver):
to
appear
„
page
five
255 miles of crude oil gather-
"in-the-ground"
"You have the green light to go on a com¬
mission basis to affiliates 15% of our 40% on
.
7
Continued from
producing
lb1/^ the shares appear
re¬
in a merger is*
impossible to say. It
QtiH
—
lion MCF.
some
ter
great
just
Service,
^k'equitfm^ore roXriclv 'if
in
culation
and
Advertising Committee
being organized and
now
enthusiasm
ceived
Clark
NSTA
seen
million barrels of oil and 36 mil-
ing
1954
Cities
engage
run
The company recently declared
dividend of 20 cents which may
some
Your
be
However, from
point of view the
outlook is very favorable.
„
.
Fuel
that
the
The
AD LIBBING
earnings will
long
or
course
qfciiq
near-term.
the
indirectly in almost
phases of the oil and
business.
Most of the com¬
of
refined
NSTA Notes
known
directly and
all
rrndp
from
is
would
stock, of which Cities Serv-
company
Continued
o£
Ar-
of
$24 million of long-term
3,801,536 shares of com-
some
products
academic
issue
same
Continental
reorganization
kansas Natural Gas.
1952
"P.S."—This department's face has
suddenly become very red.
so
constantly inveighing against the possibility
of effective
forecasting, have just been informed by the contest's
actual
recent
it
We who have been
Stock
Exchange .(16%), coming out
the
a
Service
will
someday
seek
to*
acquire the remaining outstanding:
the American
to
Arkansas
selecting individual issues, the expert press also came out
second best. In the down-hill
race, the winning writer was able to
predict only a 29% fall (in American Hide and
Leather), against
by
It
Security I Like Best
newcomer
or
thinks extremely well of this af¬
filiate.
Whether
or
not
Citiest
of
The
8<S'
could
higher
yield is therefore al¬
The
shares
expertness.
In
81%
rate.
Continued from page 2
races.
this
support
of
rate
earnings
most 5%.
with
up
three
annual
an
Certainly
easily
Out-of-the-Money Writers
by professional market forecasters, some of which have been cited
previously by this columnist, the financial writers ended
Thus
indicate
cents.
tional Bank of
Mobile, Mobile; Marion Brodnax, Brodnax &
Knight, Inc. Birmingham, and E. S. Hydinger, Carlson & Com¬
pany, Birmingham.
In line with previous detailed
surveys of actual results shown
the also-rans in all
3T
.
factor which is
non,
which is
a
recent phenome-
little hard to ap-
a
praise but which
must be taken
That
factor
is definite and
into consideration.
is
the
one-person
Pruett Adds to Staff
(Special
to The
ATLANTA,
Financial
Chronicle)
Ga.
Thomas
—
C>
Watson, Jr. has joined the staff of
'
"ruei1
"
_.ft
•'
tree Street, N. E.
''
PpaCK^
•
The Commercial and Financial Chronicle
38
*,
.
.
Thursday, February 4, 1954
.
(602)
'
.* v
;
* INDICATES
Now in
Securities
Fund, Inc., New York
50,000 shares of capital stock. Price—At
market. Proceeds—For investment. Underwriter—None.
Blaske
Advisers
Jan.
•
filed
28
Aircasters,
(2/5)
of notification)
Inc.
120,000 shares of com¬
mon stock.
Price—At par ($1 per share). Proceeds—To
construct or acquire broadcast stations.
Business—Sale
of programs and announcements to advertisers. Office—
157 Broad St., Red Bank, N. J. Underwriter—J. Gilbert
Jan.
(letter
21
Currie & Co.,
Bank^NL J.
Red
^ American General Oil & Gas Co.
26 (letter of notification) 1,000,000 shares of com¬
mon stock (par one cent)
to be issued in exchange for
Jan.
oil, gas and mineral leases having a value of $100,000.
Underwriter—None. Office—605 M & M Bldg., Hous¬
ton, Tex.
Armstrong Rubber Co.
27 (letter of notification) 1,000 shares of class A
stock (no par). Price—$21 per share. Proceeds
—To James A. Walsh, the selling stockholder.
Under¬
writer—Gruntal & Co., New Haven, Conn.
Registration
Jan.
$2.62 Vz
Proceeds
share.
per
For down payment on
—
purchase of six new barges.
Office—210 William St.,
Alton, 111.
Underwriter — G. H. Walker & Co., St.
Louis, Mo.
it Boyne Oil & Gas Co., Boyne Falls, Mich.
Jan. 27 (letter of notification) 2,000 shares of common
Price—At
stock.
($100
par
Proceeds—For
share).
per
Underwriter—None.
drilling expenses.
Office
101
—
Underwriter
common
phia, Pa.
•
Highway East, Haddonfield, N. J
Kings
Rambo, Close & Kerner, Inc., Philadel¬
—
Co., Hyannis, Mass.
(letter of notification)
4,000 shares of 6%
prior preferred stock being offered to preferred stock¬
holders of record Dec. 16 on a l-for-4 basis; rights to
13
ITEMS
REVISED
ISSUE
Clayton Mines, Inc., Orlando, Fla.
11 (letter of notification) 299,000 shares of class B
stock. Price—At par ($1 per share). Proceeds
common
equipment, working capital and general corporate
—For
Florida
Underwriter—First
Orlando, Fla
Atlanta Avenue,
Office—1800
purposes.
Inc.,
Investors
S. Court
19
Street, Orlando, Fla.
it Commercial Credit Co., Baltimore, Md.
29 filed 181,900 shares of common stock (par $10)
the company's Employees' Restricted
Jan.
to be issued under
Option Plan for officers and employees
Stock
of com¬
and its subsidiaries.
.
Fublic Service Co., Brookfield, Mo.
of 6% cumu¬
it Consumers
Jan. 28
(letter of notification) 1,200 shares
preferred stock. Price—At par ($50 per share).
Proceeds—To liquidate short-term notes and accounts
lative
payable. Underwriter
City, Mo.
Danielson
Buzzards Bay Gas
Jan.
PREVIOUS
Jan.
pany
Budget Plan Corp., Haddonfield, New Jersey
Jan. 13 (letter of notification) 20,000 shares of class A
common stock
(par $1). Price—$5 per share. Proceeds
—To establish additional offices and for working capital
Nov.
-^Atlantic City Electric Co. (2/24)
Feb. 1 filed 151,672 shares of common stock (par $10).
Price
To be supplied by amendment.
Proceeds — To
repay bank loans and for new construction.
Under¬
writer—May be Union Securities Corp. and Smith, Bar¬
ney & Co., both of New York.
1
Lines, Inc., Alton, III.
(letter of notification) 65,990 shares of common
stock (par $2), to be first offered for subscription by
stockholders of record Jan. 22; then to public.
Price—
7
•
ADDITIONS
SINCE
Manufacturing Co.
10,704 shares of class A
(letter of notification)
24
Dec.
Wahler, White & Co., Kansas
—
(par $5) being offered for subscription
by stockholders of record Jan. 15; rights to expire on
Feb. 15. Price—$9.50 per share to stockholders and $12
preferred stock
—
($25 per share) and acrepay bank loan. Un¬
derwriter—Coffin & Burr, Inc., Boston, Mass.
•
Atlantic City
Electric Co. (2/24)
of first mortgage bonds due 1984.
Proceeds—To repay bank loans and for new construction.
Underwriters—To be determined by competitive
Feb. 1 filed $5,000,000
f
Probable bidders:
bidding.
Union Securities Corp. and
Halsey, Stuart & Co. Inc.;
Smith, Barney & Co. (joint¬
ly); The First Boston Corp.
Bids—To be received up
to 11 a.m. (EST) on Feb. 24 at Irving Trust Co., 47th
floor, One Wall St., New York 15, N. Y.
& Gas Co.,
Aztec Oil
14 filed
share held;
common
$3.83
per
property,
rights to expire on Feb. 8.
Price—
share. Proceeds—To acquire equipment and
for drilling wells and for working capital.
Underwriter—None.
Shares, Inc., Minneapolis, Minn.
Jan. 4 (letter of notification) 15,000 shares of class A
stock. Price—At par ($20 per share). Proceeds—To ac¬
quire shares of capital stock of The Marquette National
Bank and the Chicago-Lake State Bank. Underwriter—
M. H. Bishop & Co., Minneapolis, Minn.
Natural
California Water
ceeds—To acquire
properties and leases. Office — Blatt
Bldg., Santa Fe, N. M. Underwriter—Hunter Securities
Corp., New York.
Carling Brewing Co., Inc., Cleveland, Ohio
18 (letter of notification) 3,750.4 shares of capital
stock
(par $15) to be offered to stockholders; with
Jan.
(letter
stock
common
ferred stock
and
notification
of
(par $100)
1,000
shares
of
class
it Central States Oil Co., Inc., North Platte, Neb.
(letter of notification) an unspecified number of
shares of preferred or common stock (offering to be
amended). Proceeds—To drill wells. Underwriter—None.
one
mon
—To
stock
(par
common
stock
(par $1)
to be
and
class
A
share
$1)
160,667
and
two
Jan. 26 (letter of notification)
(J.
Missouri
shares
offered
B
of
class
units of
in
of
new
Common
Service Co
Public
B
an
Tobin
Corp.)
Albany
(Bids
Sulphur
Morgan
;
*
Co.)
&
Suburban
$7,000,000
shares.
undetermined number
Power & Light Co., Rapid City, S. D.
(letter of notification) 14,100 shares of common
(par $1) being offered for subscription by com¬
stockholders of record Jan. 27
on
share for each share held with
privilege; rights to expire Feb. 15.
and
improvements.
a
Equip. Trust
RR
Bonds
• f
Uranium
Lisbon
(A.
..Common
Southwestern States Telephone Co
Republic Co. Inc.)
(Central
(Tuesday)
& Electric
Louisville Gas
(Bids
10:30
(The
*
First
(Bids
Bonds
(Bids
11
Equip, Trust Ctfs.,
EST)
1
Webber,
H.
February 16
oversubscrip¬
Proceeds
—
For
Underwriter
General
—
Webber,
Hirsch
None.
&
Gas
&
Electric
(Bids 8:30
..
Essex
South
•
Carolina
(Offering
to
Co.)
Bonds
?
by
:
Atlantic City
New York
Boston
Philadelphia
Pittsburgh
Chicago
Atlantic
%
11
I
Common
..
to
all
offices
&
T.
'
:
$11JKXLO00 L.
^
ft
■'
•
-
j
"
fl
—..Bonds'
May 14
shares
>r.
/ ,/P
(Bids to be invited) $12,000,000 'Tt'
j\.
(Friday)
Common
First Nat'l Bank of Toms River, N. J
(Offering
to
stockholders)
$150,000v
•
$5,000,000
May 19
Gearhart
•„
(Tuesday)
April 20
-
Bonds
EST)
$47,000,000
(Tuesday)
•»
Cleveland
Magnolia Park, Inc
Private Wires
a.m.
Gb;_--rIw^t^-____Bonds
be invited)
West Penn Power Co.__
(Wednesday)
151,672
■
(Tuesday)
(Bids to be invited)
Kidder,
City Electric Co
(Bids
San Francisco
Co.)
to
April 6
(Union Securities Corp. and Smith, Barney
&
Common
$6,000,000
(Tuesday)
30
286,436 shares
Electric Co
$17,000,000
Georgia Power Co.^__——__Bondsi
Cemmoir
-
February 24
Corp.)
Diego Gas & Electric
(Bids
$5,000,000
stockholders—underwritten
&
March
__w,
;
.
Utah Power & Light Co.__i_^__^
_-„..Common
-J
lBids 11 a m- EST> 200,000 shares
San
(Wednesday>^v
Electric & Gas Co.—
Peabody
•
Bonds
March 23
Bonds
(Bids noon EST)
;
(Tuesday)
Co
Boston
PST) $60,000,000
Electric Co..
County
16
Curtis and
Co
February 17
^
Debentures
by Paine,
and Hamlin & LuntJ -
Curtis
to stockholders—underwritten by The First
Common
&
200,000 shares
a.m.
Jackson &
»
(Monday)
(Bids to be invited)
(Offering
I*?>•'
.
Pacific
shares
National Union Fire Insurance Co
(Tuesday)
Jackson
Co.)
600,000
Co.)
&
Common
Co.
Blyth & Co., Inc.; and
Corp.;
Witter
Power
3-1
150,000 shares
Instrument Corp...
(Paine,
Wednesday)
Insurance
$5,500,000
.^Common
Walker & Co.)
shares
1,292,000
Co.)
&
March
Alabama
(G.
^Common
Corp._j—
$3,300,000.
Corp
■
$4,000,000
Sheraton Corp. of America___^»^
(Offering
to
stockholders—-underwritten
Bonds
a.m.
;
Bonds
—
(Thursday)
March 15
Mystic Valley Gas Co
Wagner Electric
4
$6,495,000
CST)
noon
EST)
a.m.
Boston
Dean
$12,000,000
Chicago & North Western Ry
(Wednesday)
March 10
(Wednesday)
February 10
,
.
*
!
Co
CST)
a.m.
11
Kibbe
P.
Fireman's Fund
February 9
-
>•
100,000 shares
•
•
$20,000,000
Ctfs.
$12,500,000
CST)
noon
:
•
Bonds
—
Co^^-.j^
March
Public Service Co. of Oklahoma
(Bids
I
EST)
a.m.
Electric
$1,995,000
EST)
noon
basis of 0.0597
an
11
(Bids
Nashville
&
Bonds'
$30,000,000
.
.
March 3
Preferred
Corp
(Peter
(Monday)
invited)
be
Southern Natural Gas Co
$99,875
•.
Gulf
1
Lighting & Power Co.____
(Bids'to
(Monday)
February 8
—.Bonds
$7,500,000
invited)
be
March
Houston
Common
Packing Co., Inc.
to
I
stock
common
construction
(Bids
$120,000
(Offering to stockholders—underwritten by Kidder,
Peabody & Co.) 527,865 shares
Black Hills
one
Co.)
&
one
Jan. 12
tion
Currie
Gilbert
(Thursday)
February 25
Pittsburgh & West Virginia Ry
Common
(Bids
(no par) to aggregate not
exceeding $300,000 market value, to be offered to em¬
ployees. Price—90% of market based upon closing bid
on the New York Stock
Exchange on Feb. 9. Proceeds—
To replenish working capital. Office—Towson, Balti¬
more Coupty, Md. Underwriter—None.
stock
it Doughboy Industries, Inc., New Richmond, Wis.
(letter of notification) 27,270 shares of cumula¬
tive class A stock (par $1). Price—$11 per share. Pro¬
ceeds—For
working capital. Underwriter—Kalman &
Jan. 27
(Friday)
February 5
Louisville
★ Black & Decker Manufacturing Co.
mon
(par 10 cents).
Price—$1 per share. Proceeds—
drilling operations. Office—704 Erie Ave., Renovo,
Underwriter—None.
For
Pa.
/Co., Inc., Minneapolis, Minn.
Aircasters, Inc.
pre¬
Price—$3 per
Proceeds — For additional equipment, working
capital and model certification. Underwriter—None.
shares of
it Devonian Gas & Oil Co., Renovo, Pa.
(letter of notification) 30,000 shares of common
NEW ISSUE CALENDAR
unit.
•
Underwriter—None.
construct mill.
(letter of notification) ;80,333 shares of class A
common
of
shares of class B non-voting com¬
cent). Price—$1 per share. Proceed*
stock (par one
com¬
it Bensen Aircraft Corp., Raleigh, N. C.
class
Inc., Oklahoma City, Okla.
Industries,
Dallas, Tex.
of common stock (par $1)
to be offered for subscription by stockholders on the
basis of two new shares for each five shares held (with
an
oversubscription privilege). Price—To be supplied
by amendment.
Proceeds—To pay approximately $8,500,000 indebtedness maturing with the current fiscal
year, and the remainder used for general corporate pur¬
poses and working capital. Underwriter—None.
*
stock
Jan. 26
Cherokee
Oil Corp.,
Jan. 22 filed 1,031,758 shares
Jan. 29
Underwriter—None.
Ohio.
Quincy Ave., Cleveland,
two
—
Jan. 22
current
(First
and 2,000 shares of 6%
(par $100) to be sold in units of
A
preferred shares.
Price — $300 per unit.
Proceeds
For
expansion.
Office —1110
Brookpark
Road, Cleveland, O.
Underwriter—None.
mon
Price—$40 per share. Pro¬
indebtedness.
Office—9400
Feb. 26.
on
retire
ceeds—To
Hartford.
Inc.,
Middlebrook
&
capital
working
Proceeds—For
public.
to
Underwriter—Coburn
Conn.
Delhi
preferred stock
-A- Bede Products, Inc., Cleveland, Ohio
29
Co.
cumulative converti¬
(par $25). Price — $27 per share.
Proceeds—To repay
bank loans and for construction
program. Underwriter—Blyth & Co., Inc. New York and
San Francisco.
Offering—Being made today (Feb. 4).
ble
share
per
Gas
Corp., Santa Fe, N. M.
Dec. 23 (letter of notification) 748,000 shares of common
stock (par five cents). Price—40 cents per share. Pro¬
Jan.
& Telephone
Jan, 14 filed 120,000 shares of $1.32
Dec. 3 filed 5,000,000
Bank
Basin
par
Proceeds—To
dividends.
rights to expire
Dallas, Tex.
2,017,801 shares of common stock (par $1),
being offered for subscription by corrpnon stockholders
of Southern Union Gas Co. of. record Dec. 28, 1953 on the
basis of one share of Aztec for each Southern Union
Dec.
Price—At
expire Feb. 16.
cured
Debentures & Common
Otis, Inc.; Hunter Securities Corp.,
J. Feibleman & Co.) $2,525,000
and
Utah
•-'a
Power
&
(Wednesday)
Light Co
(Bids
noon
EST)
...
$15,000,000
Bonds
Volume 179
Number 5296
.
The Commercial and Financial Chronicle
.
.
(603)
39
'"■■a
^ Eastern Stainless Steel Corp.
Jan.
(letter of notification)
29
-
-
,
4,000 shares of
common
stock'(no par).* Price—At market-(estimated at $10.12^;
per-share). Proceeds—To John M. Curley, President and
Chairman of the Board.
Underwriter — Hornblower &
Weeks, Boston, Mass.
Essex County
Electric Co., Salem, Mass. (2/17)
18 filed $5,000,000 of first mortgage bonds, series
Jan.
A, due Feb. 1, 1984. Proceeds—To repay short-term in¬
debtedness and balance, if any, for construction. Under¬
writers
To
determined
be
by
competitive
bidding.
Halsey, Stuart & Co. Inc.; Lehman
Brothers; Kidder, Peabody & Co.; Merrill Lynch, Pierce,
Fenner & Beane and Union Securities Corp.
(jointly).
Bids—Expected to be received up to noon (EST) on or
about Feb. 17, 1954.
—
bidders:
Probable
Estey Organ Corp., Brattleboro, Vt.
(letter of notification) 60,000 shares of
.
Jan. 21
common
stock
(par $1). Price—$5 per share. Proceeds—For ac¬
quisition of property and equipment and for working
capital. Office—48 Birge St., Brattleboro, Vt. Under¬
writer—Barrett Herrick &
Co., Inc., New York.
share, and 88y#00 shares are to be reserved ior-option 4o ' of New Bedford Gas & Edison
8Light Co. held by minor¬
underwriter at 25 cents per share. Proceeds—For
gen- " ity stockholders on the basis of
4% New England shares
eral expenses incident do mining operations. -Office—
for each New Bedford share held. 'The offer
will expire
801 Continental Bank Bldg., Salt Lake
City, Utah. Un¬
on Feb. 23. Financial
Advisor—The First Boston
Corp.,
derwriter—A. P. Kibbe & Co., Salt Lake City, "Utah..
New York.
it Los Angeles Drug Co.
28 filed $178,000 of 15-year 5% sinking fund de¬
bentures, due Oct. 1, 1966, and 50,000 shares of capital
stock (no par), the latter to be first offered for sub¬
scription by stockholders. Price—For debentures, at par;
and for stock,
$10 per share. Proceeds—To finance ex¬
merchandise inventory and operating equip¬
panded
ment
(new building), and for working capital. Under¬
writer—None.
Louisville
(Ky.) Gas & Electric Co. (2/9)
Jan. 15 filed $12,000,000 first mortgage
bonds, due Feb. 1,
1984.
Proceeds—For property additions and improve¬
ments. Underwriters—To
common
stock (par 25 cents). Price—$1 per share. Proceeds—For
Bids—Expected
(CST) on Feb. 9.
★ Fidelity Acceptance Corp., Minneapolis, Minn.
tures and
reduce
outstanding bank loans. Office—820 Plymouth
Bldg., Minneapolis, Minn. Underwriters—M. H. Bishop
& Co., Minneapolis,
Minn.; and B. I. Barnes, Boulder,
Colo.
.
,
★ Financial Credit Corp., New York
Jan.
29 filed 250,000 shares of 7%
cumulative sinking
fund preferred stock. Price—At
par ($2 per share). Pro¬
ceeds—For working capital. Underwriter—E. J. Foun¬
tain &
Co., Inc., New York.
Fire
Association of
Jan. 18
the basis of
on
ceeds—To
on
Philadelphia
one new
Feb. 17.
increase
(Pa.)
and
held;
share. Pro¬
Underwriter—
per
surplus.
None, but The First Boston Corp., New York, will act
advisors
•
to
the
stock
company.
of notification)
(par $10)
common
24,975 shares of common
being offered first for subscription by
stockholders
of
record
Jan.
14
on
a
l-for-8
basis; rights to expire on Feb. 5. Price—$10.75 per share
to stockholders and $12 per share to
public. Proceeds—
for new construction, etc.
Underwriter—None.
★ Formula Fund of Boston
(Mass.)
Feb. 1 filed 100,000 shares of beneficial interest in the
Trust. Price—At market. Proceeds—For investment. Un¬
derwriter—None.
1
General
Alloys Co., Boston, Mass.
(letter of notification) 50,000 shares of common
stock (no par), of which 30,050 shares are to be offered
Jan.
ceeds—For initial exploration expenses and
general cor¬
porate purposes.
Office—234 Middle St., Portland, Me.
Underwriter—None.
it Massachusetts Investors
28
Instrument Corp.
filed
200,000 shares of
be
related
to
the
Underwriter
common
then
stock
current
(par $1).
price
market
on
—For plant
additions, research and possible acquisition
the New York Stock
Exchange. Proceeds
other
manufacturing companies.
Underwriters
Webber, Jackson & Curtis, Boston, Mass., and
Hirsch & Co., New York.
McBride Oil & Gas Corp., San Antonio, Tex.
26 filed 2,000,000 shares of common stock
(par 10
cents). Price—To be supplied by amendment. Proceeds
notes,
for
exploration
it Gray Manufacturing Co., Hartford, Conn.
Jan. 28 (letter of notification)
11,150 shares of capital
stock (par S5) to be sold to certain
key employees un¬
Price
options.
working capital.
—
At market.
Proceeds
—
For
Office—16 Arbor St., Hartford, Conn.
Underwriter—None.
it Grolier Society, Inc., New York
Jan. 27 (letter of notification)
21,000 shares of common
stock (par $1).
Price—$14 per share.
Proceeds—For
working capital.
Business—Engaged chiefly in publi¬
cation and distribution of reference sets of books.
2 West 45th St., New
—
•
Office
York, N. Y. Underwriter—None.
Gulf
Sulphur Corp. (2/8-9)
Oct. 27 filed 700,000 shares of 60-cent
non-cumulative
convertible preferred and
participating stock (par 10
cents. Price—$10 per share. Proceeds—To
develop com¬
pany concessions.
Underwriter—Peter Morgan & Co.,
New York.
it McCormick & Co., Inc., Baltimore, Md.
Jan. 28 (letter of notification) 1,666 shares of common
non-voting stock (no par).
Price — At market (esti¬
mated at not to exceed $30
per share).
Office — 414
Light St., Baltimore 2, Md.
Underwriter—None.
Medina Oil Corp., Orlean,
Dec. 9 (letter of notification)
N. Y.
2,800 shares of common
per share).
Proceeds—To
Price—At
par
($100
purchase drill rig, etc. Office —- 10 East Corydon St.,
Bradford, Pa.
Underwriter — Winner & Myers, Lock
Haven, Pa.
I
Merritt-Chapman & Scott Corp., New York
Dec. 31 filed 513,594 shares of
being
offered
in
Steel
Corp.
stock
for each 2.1
Jan.
stock
(par $10), to be sold in units of 10 shares. Price—
unit. Proceeds—To increase working capital.
Office—1700 West 9th St., Kansas
City 1, Mo. Under¬
per
writer—None.
★ Kansas City Life Insurance Co.
exchange
Lisbon
Jan. 20
stock
be
Uranium
Corp. (3/4)
(letter of notification) 1,292,000 shares of
capital
(par 15
offered
to
cents), of which 1,079,000 shares are to
public and 125,000 shares are to be
the
reserved for optioh to Moab
rate
for
of
one
of
share
shares
of
(par $1) of Newport
of
Merritt-Chapman
Newport stock.
5
Offer will
Underwriter—None.
filed
with
bank
facilities.
company
Drilling Co. at 20 cents
borrowings, are to be used for expansion of
Underwriter-^-None. Sales will be handled by
employees.
Missouri
Public
per
(2/5)
13-day
standby). Price—To be supplied by amendment. Pro¬
ceeds—Together with other funds, to acquire capital
stock of Gas Service Co. (a
subsidiary of Cities Service
Co.). Underwriter—Kidder, Peabody & Co., New York.
★ Morrison-Knudsen Co., Inc. and Broadway
Holding Co.
Jan. 25 (letter of notification) 9,375 shares of common
(par $10) to be offered to employees pursuant
"Employees' Stock Purchase Plan." Price—$3 per
less
than
the
market
Proceeds—To be
applied against the cost of purchasing the shares. Ad¬
dress—Box 450, Boise, Ida. Underwriter—None.
price.
Mystic Valley Gas Co. (2/10)
Jan. 12 filed $5,500,000 first
mortgage bonds, series1 A,
1974.
Proceeds—To
pay
an
(par
25
number
Price—At
cents).
cents
Carl
Nuclear Research
Corp. (Pa.)
(letter of notification) 2,000,000 shares of com¬
stock (par one cent).
Price—15 cents per share.
Proceeds—To repay bank loan and current trade
Jan. 21
mon
obliga¬
tions, to construct laboratory and
Office—2563 Grays Ferry Ave.,
for working
capital.
Philadelphia, Pa. Under¬
writer—1Tellier & Co., Jersey
pected late in February.
City, N. J. Offering—Ex¬
it Nunn-Bush Shoe Co., Milwaukee, Wis.
(letter of notification) 15,000 shares of common
stock (par $2.50) to be offered to
permanent employees
only. Price—At market. Proceeds—For working capital.
Jan. 27
Office—2822 N. 5th St.,
Milwaukee, Wis. Underwriter—.
None.
Otter Tail Power
Co., Fergus Falls, Minn.
$2,500,000 of 4J/4% convertible debentures
1, 1964 being offered for subscription by com¬
Dec. 28 filed
due Jan.
stockholders of record Jan. 22, 1954, on the basis
$100 of debentures for each 25 shares of stock then
held rights to expire on Feb. 8.
Price—100% of principal
mon
of
amount.
Proceeds—To retire bank loans and for
capital
expenditures. Underwriter—Blyth & Co., Inc., New York
and
San Francisco.
Pacific Gas & Electric Co. (2/16)
Jan. 19 filed $60,000,000 first and
refunding
mortgage
bonds, series W, dated Dec. 1, 1953 and due Dec. 1, 1984.
construction
Underwriters—
program.
by competitive bidding. Probable bid¬
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; The
First Boston Corp. Bids—To be received
up to 8:30 a.m.
(PST) on Feb. 16 at 245 Market St., San Francisco, Calif.
ders:
it Perkin-Elmer Corp., Norwalk,
Jan.
29
(letter of
notification
stock to be offered to
share.
★
Conn.
6,430
shares
employees only.
of
common
Price—$5.75
per
Proceeds—For working
capital.
Office—Maine
Underwriter—None.
Avenue, Norwalk, Conn.
Philip Morris & Co., Ltd., Inc., New York
Jan.
13 filed 443,561 shares of common stock
(par $5)
being offered in exchange for common shares of Benson
& Hedges, on a share-for-share basis. Offer is
subject to
acceptance by holders of not less than 355,460 shares of
Hedges stock, and will expire on March 1, un¬
Benson &
less extended.
Underwriter—None.
★ Producers Life
Insurance
Co.,
Mesa, Ariz.
Jan.
29 filed 227,500 shares of common stock
(par. $1)
to be offered to present and future holders of
company's
life insurance with stock purchase rights.
Price—$2 per
share.
Proceeds—For
Public
Jan.
18
working
capital.
Underwriter—
Service
Co.
of
Oklahoma
(2/8)
filed $12,500,000 of first mortgage
E, due Feb. 1,
bonds, series
1984.
Proceeds—For additions and im¬
provements.
Underwriter—To be determined by com¬
petitive bidding.
Probable bidders: Halsey, Stuart &
Co. Inc.; Equitable Securities Corp.; Salomon Bros. &
Hutzler; The First Boston Corp.; White, Weld & Co. and
Shields & Co. (jointly); Glore, Forgan & Co., Dean Wit¬
ter & Co. and Lehman Brothers
(jointly); Blyth & Co.,
Inc., Kidder, Peabody & Co. and Stone & Webster Se¬
curities Corp. (jointly).
Bids — To be received up/to
(CST) on
Illinois.
noon
Feb.
8
at
20
No.
Wacker
Drive,
Chi¬
cago 6,
Safeway Trails, Inc., Washington, D. C.
21
(letter of notification) $299,000 of 20-year 5%
debentures.
equal amount of out¬
standing promissory notes. Underwriter—To be deter¬
mined by competitive
bidding. Probable bidders: Halsey,
Price—90%
of
face
value.
Proceeds—To
convert
building into bus terminal, purchase of new
buses and for working capital. Office—820 T St., N.
E.,
Washington, D. C. Underwriter—None.
Santa
Fe Western Gas & Oil Corp. (N. M.)
(letter of notification) 299,925 shares of common
stock (par one cent).
Price—$1 per share. Proceeds—
To repay note.
Office—406 Sunshine Bldg., Albuquer¬
Jan. 22
N. M.
que,
Underwriter — Gearhart & Otis, pic., New
Offering—Expected late in February.
.'/
York.
stock
share
50
Jan.
Jan. 14 filed 527,865 shares of common stock
(no par) to
be offered for subscription
by common stockholders of
record Feb. 5 on a share-for-share basis (with a
to
at
named
Offering—Expected during March.
Service Co.
stock
common
per share). Proceeds—
E. Degner,
Sr., President. Underwriter—To be
by amendment. Address—P. O. Box 56, Carrizozo, N. M.
To
stock (par $12.50)
1,078,546.25
stock
common
shares
Feb. 26.
on
it Shareholders' Trust of Boston
Jan.
29
market.
filed
10,000
shares
of
Proceeds—For investment.
Snoose
(Mass.)
capital
stock.
Price—At
Underwriter—None.
Mining Co., Haiiey, Idaho
Oct. 30
(letter of notification) 1,000,000 shares of com¬
Price—At par (25 cents per share).
Pro¬
ceeds—For machinery and equipment.
Underwriter—
mon
E.
W.
stock.
McRoberts
&
Co., Twin Falls, Idaho.
★ South Carolina Electric & Gas Co.
(2/17)
Stuart & Co. Inc.;
Kidder, Peabody & Co.; Lehman
Brothers; Merrill Lynch, Pierce, Fenner & Beane and
Union Securities Corp.
(jointly). Bids—Tentatively ex¬
Jan. 28 filed 286,436 shares of common stock (par $4.50)
to be offered for subscription by common stockholders
pected to be received up to 11
ten
of record Feb. 17
shares held
on
the basis of
one
new
share for each
Dec.
Price—To be
supplied by amendment.
Proceeds—For new construc¬
tion, etc.
Underwriter — Kidder, Peabody & Co., Newf
York City.
the Toronto
★ South Texas Oil & Gas Co., Corpus Christie, Texi
Jan. 26 (letter of notification) 133,333 shares of capital
Feb. 10 at 441
(Mo.)
Feb.
1
filed
voting trust "participation certificates"
covering 40,000 shares of common stock, of which 20,559
certificates have been issued. Voting Trustees—Walter
Bixby, Ray B. Lucas and J. L. Batchler.
•
at
common
of
(estimated
None.
26,666 shares of special common stock (par
$75—limited dividend) and $1,500,000 of certificates of
participation (to be sold in multiples of $75—5% inter¬
est). Proceeds—From sale of these securities, together
due
it Indianapolis-Kansas City Motor Express Co.
Jan. 26 (letter of notification)
10,000 shares of common
$100
and
drilling expenses
and additions to properties, and for
working capital.
Underwriter—Continental Securities Corp.
stock.
shares
market
To be determined
Jan.
repay
of
Proceeds—For
Fund,
225,000 shares of capital stock. Price—At
Proceeds—For investment. Underwriter—None.
—
Paine,
der stock
Stock
Mississippi Chemical Corp., Yazoo City, Miss.
(2/16)
of the stock
of
Growth
filed
market.
expire
27
a.m.
it Maine Mining & Exploration Corp.
(letter of notification) 550,000 shares of common
stock (par 10 cents).
Price—50 cents per share.
Pro¬
manufacturing space and new machinery.
—Wm. S. Prescott & Co., Boston, Mass.
Jan.
10:30
of stock.
authorized and issued
Price—To
to
,,
to be offered in units of $100 of deben¬
10 shares
certain officers
under options
and the remaining
19,950 shares to be offered to certain employees. Price—
$1.25 per share.
Proceeds—For additional office and
Genera!
up
Jan. 28
19
to
•
received
Price—$101 per unit. Pro¬
ceeds—For construction of racing plant and for ex¬
penses incident to racing activities. Underwriters—Gearhart & Otis, Inc. and Hunter Securities
Corp., both of
New York; and T. J. Feibleman &
Co., New Orleans, La.
To
as
Florida Telephone Corp., Ocala, Fla.
Dec77ftM4ctter
(par 10 cents)
Jan.
share for each share
Price—$22.50
capital
be
Inc.
Dec. 11 filed 340,000 shares of
capital stock (par $10) be¬
ing offered for subscription by stockholders of record
rights to expire
to
★ Magnolia Park, Inc. (2/24-25)
29 filed $2,500,000 of 6% subordinated convertible
debentures due 1969 and 250,000 shares of common stock
Jan.
notification) 2,800 shares of 6% cumu¬
lative preferred stock, class E. Price—At par
($25 per
share). Proceeds—To be available to subsidiaries and
determined by competitive
Probable bidders: Halsey, Stuart & Co. Inc.;
Kidder, Peabody & Co.; Lehman Brothers and Blyth &
Co., Inc. (jointly); Glore, Forgan & Co.; Kuhn, Loeb &
Co.; The First Boston Corp.; Harriman Ripley & Co.,
purchase of land and machinery, to erect buildings and
for working capital. Underwriter—A. Kalb &
Co., 325
Market St., Trenton, N. J.
Jan. 26" (letter of
be
bidding.
Inc.
Federal Pipe & Foundry Co. (N. J.)
Nov. 16 (letter of notification) 39,000 shares of
;
★ New Mexico Copper Corp. (N. M.)
Jan. 27 "(letter of
notification) an undetermined
Jan.
Stuart St., Boston
a.m.
(EST)
on
or
about
16, Mass.
New Bristol Oils,
Ltd., Toronto, Ont., Canada
18 filed 1,000,000 shares of common
stock; (par $1).
Price—To be related to the bid price of the shares on
Stock
Exchange, with
a
20%
underwriting
commission.
stock
New England Gas & Electric Association
Dec. 10 filed 32,126 common shares of beneficial interest
Bludworth,
Christi, Tex.
being offered in exchange for
common
stock
a
14-day standby).
♦
Proceeds—For general corporate purposes.
Underwriter—To be named by amendment.
(par $8)
(with
about
(par
75
10
cents).
cents
Price—At market
(estimated at
share).
Proceeds — To Joseph E.
President.
Office — Wilson Tower, Corpus
per
Underwriter—None.
Continued
on
page
40
Chronicle
The Commercial and Financial
40
39
Continued from page
Gas Co. (3 1)
Jan 25 filed $20,000,000 of first mortgage pipe line
ing fund bonds due 1974. Proceeds—To repay bank
for additions already
reimburse treasury
to
and
sink¬
loans
made
properties. Underwriters—To be determined by com¬
bidding. Probable bidders. Halsey, Stuait &
Co Inc.: The First Boston Corp.; Blyth & Co., Inc. and
Kidder, Peabody & Co. (jointly). Bids—Tentatively ex¬
pected to be received up to 11 a.m. (EST) on March 1
at 90 Broad St., New York, N. Y.
to
petitive
Service Co.
Public
Southwestern
Jan.
272,500 shares of common
12 filed
stock (par $1)
subscription by common stockholders
share for each
14 shares held
(with an oversubscription privilege);
rights to expire Feb. 16. Price—$22.50 per share. Pro¬
ceeds—To repay bank loans and for property additions
being offered for
Underwriter—Dillon, Read & Co.
improvements.
and
Inc., New York.
stock (par $1).
Price—To be supplied by amendment. Proceeds—To fi¬
nance, in part, the 1954 construction program.
Under¬
writer—Central Republic Co., Inc., Chicago, 111.
if Stein, Roe & Farnham Fund, Inc., Chicago, III.
Feb.r-1 filed 150,000 shares of capital stocky Price—At
market. Proceeds—For investment. Underwriter—None.
Ar Suburban Electric Co. (3/3)
Jan. 29 filed $4,000,000 first mortgage bonds, series A,
Proceeds—To repay bank loans and
for: new construction. Underwriters—To be determined
by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Lehman Brothers; Kidder, Peabody & Co.;
Merrill Lynch, Pierce, Fenner & Beane and Union Se¬
curities Corp. (jointly). Bids—Tentatively expected to
be received up to 11 a.m. (EST) on or about March 3
due March
at
1, 1984.
Stuart
441
St.,
if Suburban Propane Gas Corp.
29 (letter of notification) 3,290 shares of common
Jan.
issuable upon exercise of option war¬
rants prior to Nov. 27, 1955.
Price — $9.50 per share.
Proceeds—For working capital.
Address—P. O. Box 206,
Whippany, N. J.
Underwriter—None.
stock
$1)
(par
if Television-Electronics Fund, Inc., Chicago, III.
Jan. 28 filed 1,6*00,000 shares of capital stock. Price—At
market. Proceeds—For investment. Underwriter—None.
Three States Uranium
Corp.
13
mon
Proceeds
drilling, surveys and working capital
Colo. Underwriter
Jersey City, N. J. Offering—Expected
For
—
competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Union Securities Corp., Equit¬
able Securities Corp. and Drexel & Co. (jointly); Blyth
& Co. Inc. and Kidder, Peabody & Co. (jointly); Morgan
Stanley & Co.; Lehman Brothers; The First Boston Corp.;
Harriman Ripley & Co., Inc. Registration — Tentatively
scheduled for Feb. 8. Bids—Expected to be opened on
March 16.
Louisiana
American
Pipe Line Co.
subsidiary of American Natural Gas
Nov. 10 company, a
Co., asked Federal Power Commission to authorize con¬
of a $130,600,000 pipe line, to
be financed
struction
the issuance of $97,500,000 of first mortgage
$12,000,000 of interim notes convertible to pre¬
stock at option of company, and $20,500,000 of
through
common
stock (par $100), the latter to be
sold to parent.
Baltimore & Ohio RR.
Nov. 9 it
reported
was
is planning to issue $60,-
company
000,000 of new collateral trust 4% bonds to mature in
l-to-16 years in exchange for a like amount of collateral
bonds
Jan.
due
1, 1965 now held by the Recon¬
struction Finance Corporation. The latter in turn plans
trust
to offer the new bonds
to
Stuart
including Halsey,
a
&
group
Co.
of investment houses
Inc.; The First Boston
Pierce, Fenner & Beane; Alex.
others. The bankers would then
offer the bonds to the public.
&
Brown
Sons;
Central
Dec. 9
it
and
announced company
sell around the middle of 1954
mortgage bonds.
an
intends to offer and
issue of $4,000,000 first
bank loans and for
Underwriters—To be determined by
Proceeds—To
construction.
competitive
bidding.
repay
bidders:
Probable
Halsey,
Central Maine Power Co.
it Was reported company plans sale during the
quarter of 1954 of $10,000,000 common stock after
by New England Public Service Co. of its
7
first
capitalization to
There are presently author¬
value, of which 33,750 shares
will be outstanding following present offering and sale
of 30,000 shares of common stock at $10
per share.
Business—A discount and lending organization. Office—
authorize
offering.
new
a
of'
ized 35,000 shares
no par
Underwriter—May be Boy-
Fidelity Bldg., Dallas, Tex.
Ien, Kasper & Co., Dallas, Tex.
if Fireman's Fund Insurance Co.,
San Francisco, Calif.
(3/10)
Jan. 29 it was announced company plans to offer pub¬
licly 600,000 additional shares of capital stock.
Price—
To be named later.
Proceeds—To finance acquisition
its wholly-
January of National Surety Corp. and
last
subsidiary, National Surety Marine Insurance Co.
First Boston Corp., New York; and
owned
Underwriters—The
Dean Witter & Co., both of San
Registration—Expected by Feb. 16.
Blyth & Co. Inc. and
Francisco, Calif.
Bank of Toms River,
First National
Jan
it
12
bank
announced
was
plans to
N. J. (5/14)]
offer for sub¬
scription by its stockholders of record May 1, 1954, an
additional 3,000 shares of capital stock (par $10) on the
basis of one new share for each 26 shares held; rights to
expire
25
Underwriter—None.
capital and surplus.
Power &
Florida
Jan.
it
Light Co.
may later this year
first mortgage bonds.
competitive bidding.
Halsey, Stuart & Co. Inc.; White, Weld
reported
was
Proceeds—To
Price—$50 per share.
June 16.
on
increase
company
about $15,000,000 of
issue and sell
Probable bidders:
Co.; Lehman Brothers; Merrill Lynch, Pierce, Fenner
Beane; Glore, Forgan & Co. and Harriman Ripley &
Co. Inc. (jointly).
&
&
Stuart
& Co. Inc.; Stone & Webster Securities Corp.; Kidder,
Peabody & Co. and White, Weld & Co. (jointly).
Oct.
a
that
announced
was
.its
crease
Underwriters—To be determined by
Illinois Electric & Gas Co.
was
'f
Dallas, Tex.
company plans to in¬
$3,000,000, following which
registration statement will be filed with the SEC to
it
22
Dec.
Merrill Lynch,
Corp.;
General
16 it
Dec.
Utilities Corp.
Public
announced
was
plans to offer about
company
600,000 additional shares of common stock (par $5) to
stockholders in March or April, 1954 — probably on the
basis of one new share for each 15 shares held. Pricebe
To
determined just prior to the
Pro¬
offering date.
distribution
ceeds—To be invested in the domestic subsidiaries.
holdings
derwriter—None, but
of
Central
Maine
Power
Co.
common
stock.
Probable bidders: Blyth &
Beane may
Georgia Power Co.
Dec. 15 it was reported
Co., Inc. and Kidder, Peabody
(jointly); Coffin & Burr, Inc.; A. C. Allyn & Co.,
and Bear, Stearns & Co. (jointly); Harriman Ripley
&
Co., Inc.
as
(4/6)
company
plans issuance and sale
first mortgage bonds due 1984. Proceeds
repay bank loans and for construction program.
Underwriters—To be determined by competitive bid¬
of $11,000,000
—To
if Central Power & Light Co.
27 it
act
Un¬
Fenner &
Merrill Lynch, Pierce,
clearing agent.
& Co.
Inc.
(letter of notification) 2,000,000 shares of com¬
stock (par one cent).
Price—15 cents per share.
Nov.
is planning issuance
be determined by
new
Boston, Mass.
company
$17,000,000 first mortgage bonds due 1984.
Proceeds—For construction program. Underwriters—To
ferred
Telephone Co. (2/8)
100,000 shares of common
filed
21
reported
was
Underwriter
and Los An¬
•
if Fidelity Trust of America,
of
sale
and
bonds,
Southwestern States
Jan.
it
15
Dec.
geles (Calif.)
(3/16)
Power Co.
Alabama
1 at the rate of one new
Record Feb.
Registration—Expected early this month.
Hammill & Co., New York
—Shearson,
Prospective Offerings
Southern Natural
•
Thursday, February 4, 1954
.
..
(604)
Office—354 Main St., Grand Junction,
Jan.
Tellier
$.9,000,000 to $10,000,000 first mortgage bonds, series F,
due 1984.
Proceeds—To repay bank loans and for new
construction.
Underwriters—To be determined by com¬
petitive bidding.
Probable bidders:
Halsey, Stuart &
Co. Inc.; The First Boston Corp., Eastman, Dillon & Co.,
Goldman, Sachs & Co. and White, Weld & Co. (jointly);
Boston Corp.; Lehman Brothers; Morgan Stanley & Co.
Registration—Planned for March 1. Bids—Expected to
Merrill
be
&
Co.,
today (Feb. 4).
t
Tobin Packing Co.,
Jan:
Inc. (2/5)
(letter of notification) 8,500 shares of common
(par $3). Price—$11.75 per share. Proceeds—To
21
.stock
John J. Krez
trustee under Frederick M. Tobin Trusts.
as
•Underwriter—First Albany Corp., Albany, N. Y.
United
Oct.
7
Merchants
filed
Price—At
Manufacturers, Inc.
shares of common stock (par $1).
574,321
the
Exchange
market
(either
on
the New
York
Stock
through secondary distributions). Proceeds
—To a group of selling stockholders who will receive
the said shares in exchange for outstanding preferred
and
or
stock of A. D. Juilliard & Co., Inc., on the
shares of United Merchants stock for each
common
basis of 6V2
Juilliard
None.
common
Statement
or
preferred
effective
Oct.
share.
Underwriter—
26.
be
supplied
by
amendment.
Proceeds—For
Underwriter—G. H. Walker
Louis and New York.
general corporate purposes.
& Co., St.
West Coast Pipe Line Co., Dallas, Tex.
Nov.
due
20,
Dec.
1952 filed $29,000,000
12-year 6%
debentures
15, 1964, and 580,000 shares of common stock
■(par 50 cents) to be offered in units of one $50 deben¬
ture and one share of stock.
Price—To be supplied by
amendment. Proceeds—From sale of units and 1,125,000
additional shares of common stock and private sales of
*$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
York.
Offering—Postponed indefinitely.
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.
ft Whitaker Cable Corp., No. Kansas City, Mo.
Jan. 27 (letter of notification) 17,500 shares of common
stock
(par $1).
investment
in
Price—$12.50 per share. Proceeds—For
Metals Corp. and for working
Whitaker
capital. Underwriter
City, Mo.
—
Fitch,
North
&
Co.,
Kansas
Lynch,
Pierce,
& Hutzler
—Tentatively expected to be received in May.
Chicago Great Western Ry.
Dec. 3 company sought ICC permission to issue and sell
$6,000,000 of collateral trust bonds due Nov. 1, 1978,
through a negotiated sale. Price—To be announced later.
Proceeds—To repay
bank loans and for capital im¬
provements. Bids—Halsey, Stuart & Co. Inc. on Dec. 14
asked ICC to reject company's request and that bonds
first
be
Wagner Electric Corp., St. Louis, Mo. (2/10)
Jan. 19 filed 150,000 shares of common stock (par $15).
Price—Tb
Fenner & Beane and Salomon
(jointly); Lehman Brothers; Union Se¬
curities Corp. and Kidder, Peabody & Co. (jointly). Bids
Bros.
&
reported company plans to issue and sell
was
offered
at
will
be
received
by the
Feb.
in
Room
1400,
10 for the
Columbia Gas System, Inc.
Jan. 18 it was reported company
financing early this
determined
year.
is considering addi¬
Underwriters—To be
by competitive bidding.
Probable bidders:
W. Pressprich &
Union Securities
Co. (jointly); Lehman Brothers and
Co^-p. (jointly); Morgan Stanley & Co.
Community Public Service Co.
Jan. 5, R. L. Bowen, President, announced that company
plans to issue and sell in the latter part of March $3,000,000 of first mortgage bonds due 1984.
Proceeds—To re¬
bank loans and for new construction. Underwriters
—Previous bond financing was done through private
channels.
Bidders if competitive, may include: Halsey,
pay
Stuart
&
Co.
Inc.; Equitable Securities Corp.; Blyth &
Co., Inc.
if Consolidated Natural Gas Co.
was reported company plans to issue and sell
Jan. 27 it
Wyoming Oil Co., Denver. Colo.
Nov. 3 (letter of notification) 5,000,000 shares of common
tstock (par five cents). Price—5V2 cents per share. Pro■ceeds
For
drilling expenses. Office — 301 Kittredge
Bldg., Denver, Colo. Underwriter — Robert W. Wilson,
'Denver, Colo.
—
Wyoming Oil & Exploration Co., Las Vegas, Nev.
Dec. 7 filed 300,000-shares of capital stock (par $1. Price
—-To be supplied by amendment.
Proceeds—To pay for
irises and
drilling.
Business—Oil and. gas
Underwriter—None.
exploration.
Lighting & Power Co.
18 it was reported company
Jan.
$25,00,000 of debentures due 1979.
Proceeds — To pur¬
chase stock of company's operating subsidiaries, who in
turn will
apply these proceeds for construction. Under¬
To be determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; White,
writers
(3/1)
plans to issue and sell
$30,000,000 of first mortgage bonds due 1989.
Proceeds
construction program.
Underwriters—To be de¬
—For
termined
Probable
bidding.
competitive
by
bidders:
Co. Inc.; Kuhn, Loeb & Co.; Union
Securities Corp.; Lehman Brothers; Smith, Barney &
Co.; Kidder, Peabody & Co.; Equitable Securities Corp.
Bids—Expected to be received on March 1.
Registration
Halsey,
&
Stuart
—Planned
for
Feb.
Power
4.
Co.
Co., Inc. and Bankers Trust
Power Com¬
$184,550,000
to finance construction of three hydro-electric projects
on Snake River, Idaho.
If approved, the financing will
consist of $105,000,000 of bonds through 1962; $27,400,000
of preferred stock; and $52,150,000 of common stock.
Throughout the financing period, the company would
Co., New York, testified before the Federal
mission that this company plans to raise
Final
$29,000,000 of short-term loans.
financing details would depend on market conditions.
(1) For bonds — Halsey, Stuart & Co. Inc.; Morgan
Stanley & Co. (2) For stock — Merrill Lynch, Pierce,
Fenner & Beane, White Weld & Co., Shields & Co. and
R.
April 6.
on
borrow and repay
Inc.
tional
received
Houston
Aug. 6, officials of Blyth &
(2/10)
company
Chicago 6, 111. up to noon (CST)
purchase from it of $6,495,000 equip¬
ment trust certificates to be dated March 1, 1954 and
mature annually March 1, 1955 to 1969, inclusive. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; Salomon Bros.
& Hutzler; Kidder Peabody & Co.; Blair, Rollins & Co.
on
•
Idaho
West Madison St.,
400
(jointly); Harriman Ripley & Co., Inc.; Union Securities
Corp. and Equitable Securities Corp. (jointly); The First
competitive'bidding.
Chicago & North Western Ry.
Bids
ding. Probable bidders: Halsey, Stuart & Co. Inc.; Blyth
& Co., Salomon Bros. & Hutzler
and Shields & Co.
Jersey Central Power & Light Co.
Dec.
Issue
16
it
and
reported
was
1984.
bonds due
Underwriters
1954
in
sell
—
company
about
Proceeds
—
tentatively plans to
$6,000,000 first mortgage
For construction program.
To be determined by
competitive bid¬
ding, Probable bidders: Halsey, Stuart & Co. Inc.;
Weld
&
Co.; Glore,
Forgan & Co.; Kidder,
White,
Peabody &
Securities Corp., Salomon Bros. & Hutzler
and Merrill Lynch, Pierce, Fenner & Beane (jointly);
The First Boston Corp.; Lehman Brothers.
Co.;
Union
Kansas
Jan.
13
it
City Power & Light Co.
was
sell later in
announced
that company
1954 additional first
may
issue and
Pro¬
mortgage bonds.
construction.
Underwriters—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Lehman
Brothers and Bear, Stearns & Co. (jointly); Kuhn, Loeb
& Co., Salomon Bros. & Hutzler and Union Securities
Corp. (jointly); Glore. Forgan & Co.; Blyth & Co., Inc.
and The First Boston Corp. (jointly); White, Weld & Co.
and Shields & Co. (jointly); Harriman Ripley & Co., Inc.;
ceeds—To
bank loans and
repay
for
new
Equitable Securities Corp.
•
Laclede
Gas
Co.
—
Weld & Co. and
Paine, Webber, Jackson & Curtis (joint¬
ly); Morgan Stanley & Co. and The First Boston Corp.
(jointly).
Offering—Tentatively expected in May.
if Dougias Oil Co. of California
Feb. 1 it was reported compahy plans to issue and sell
50,000 shares of convertible preferred stock
(par $25).
Jan.
28
stockholders approved issuance of
not to exceed
$10,000,000 of non-convertible debentures., Financing in
form of debentures, bonds, preferred or common stock
is
expected before June 15, 1954.
Louisville
& Nashville
RR.
(2/8)
Bids will be received by, the company uo to noon
on
Feb.
8 for the
(EST)
purchase from it of $1,995,000 equip-
Volume 179
Number 5296
The Commercial and Financial Chronicle
.
.
.
(605)
ment
trust
Probable
Bros.
&
M, dated Aug.
Stuart & Co. Inc.;
series
certificates,
bidders!
Halsey,
15,
1953.
Public Service Co. of Colorado
Salomon
Oct. 13 it
Hutzler; Kidder, Peabody & Co.; Blair, Rollins
000 electric generating
Bell
reported that the company
issue of bonds late in
an
1954.
Colo.
issue and
may
Jan. 27 it
an
reported that the company is
tentatively
planning to issue and sell in the Fall $10,000,000 of first
mortgage bonds, series F, due 1984.
Proceeds—For con¬
struction program.
Underwriters—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Equitable Securities
Corp.; Lehman Brothers;
early
$17,000,-
Louisville & Nashville RR.
was
★ Southwestern Gas & Electric Co.
planning to float
is
issue of $15,000,000 first mortgage bonds, due
1984,
in 1954.
Proceeds — For financing, in part, a
& Co. Inc.
Nov. 12 it
reported company
was
Proceeds—To retire
plant to be constructed in Denver,
determined by competitive
Halsey, Stuart & Co. Inc.:
Underwriters—To be
bidding.
Probable bidders:
$24,610,000 Atlanta. Knoxville & Cincinnati
bonds due May 1, 1955, and for general corporate
poses. Underwriters—May be determined by
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Morgan Stanley & Co.; White, Weld & Co. and Salomon
Bros. & Hutzler
16 it
reported
was
Jan. 27 it
★ Public Service Electric & Gas Co.
Jan.
Missouri
it
28
announced
bidding.
Probable bidders:
Halsey, Stuart & Co.
Inc.; Morgan Stanley & Co. and Drexel & Co. (jointly);
Kuhn, Loeb & Co. and Lehman Brothers (jointly); The
First Boston Corp.
Previous public offering of common
issue
and
stock
National
Fire
(now in regis¬
Co.
the
16
Pacific
July 2 it
sell
to
Telephone & Telegraph Co.
announced company plans to
its
stockholders
capital stock
share.
issue
on
1,004,603
l-for-7 basis.
a
additional
shares
•
of
(100 per
Underwriter—
sell
16
it
reported
was
that
issue
may
and
$12,500,000 of first mortgage bonds due 1984.
construction
program.
Underwriters—
competitive bidding. Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Equitable Securities
Corp.; Kidder, Peabody & Co., Merrill Lynch, Pierce,
Fenner & Beane, Union Securities Corp. and White,
Weld & Co.
(jointly); Harriman Ripley & Co., Inc.;
Kuhn, Loeb & Co., Lehman Brothers, Drexel & Co. and
Salomon Bros. & Hutzler (jointly); The First Boston
Corp. Offering—Expected in March or April, 1954.
Kimball
it
was
of
reported
first
company
on
it
1
was
The
common
each
stockholders
five
shares
the
on
—
in
on
Barney & Co., New
Registration—Expected early in March.
termined
to
share for
Peabody & Co.; Carl M. Loeb, Rhoades & Co.; Salomon
stock (par $5)
new
one
About
$10
sold
Peace
to
and
4.100,000 shares of
public.
Proceedsr—Ta
the
natural
a
gas
pipe line from the
Washington-and
River field to western
1
Penn
it
Power Co.
(4/20)
was
Stuart & Co. Inc.; The First Boston Corp.; Lehman
Brothers; W. C. Langley & Co.; Kidder, Peabody & Co.
and White, Weld & Co.
(jointly); Kuhn, Loeb & Co.;
sey,
Harriman
Ripley
for
26.
March
&
Co.
Registration
Inc.
Scheduled.,
—
Bids—Tentatively expected
April 20.
on
if Winters National Bank & Trust Co., Dayton, Ohio
Jan. 21 stockholders of record Jan. 12 were offered
200,000 shares of capital stock (par $10) on the basis of two
shares for each five shares held; rights to expire Feb. 5.
Price—$15 per share. Proceeds—To increase capital and
surplus.
Underwriters—Greene & Ladd; Ball, Burge &
The First Boston Corp.; Equitable Se¬
curities
Kraus; Grant-Brownell
Planned
Davidson; W. E. Hutton & Co.; C. C. McCune
Westheimer & Co., and Fred C. Yager, Inc.
Corp.; White, Weld & Co. and Shields & Co.
(jointly); Blair, Rollins & Co. Inc.
Registration —
for first week
of March.
&
Co.;
Hunter,
Prugh,
Ball &
&
,
Co.;
,
•
—,
0'
issues
with
Our
for
market
out
mand
gone
has
But
now
high-grades
around
averaging
de
3.15%
dormant.
world
investment
The
Reporter's
substantial.
was
the
is
the
primary
look¬
of
source
undertaken
taper off
subsisting
+ Vi
ncn
on
industry
mighty
rloiTC
i
o
these days and there is
suggest
early
an
drought
of
conditions
new
are
tions appear
their
pated
months
or
Six
money
to
of
months
was
the
be
on
disposed
for
ago
a
believe
be
tn thaf
to
sit
ii
when
commanding
new
to
that
the
jl:
in
bond
an
-
fieM
form
Stock
Deal
public
Pends
the
2
is
j
this
that
3%
on
the 3%%
of
the
or
not
too
is
come
at-
some
cou-
recognized that investors
emissions
took
so
are
easily
last
and
18
37/g%
months
going to be roused
into
looking
been
sluggish
weeks will hold
is operating at the morrifent ill' the
secondary
investment > mark et
where the trend toward higher
Holds
pace
sway
of
interest marxet
g
.
WISe.
at
new
.
.
marketings.
.
to
neCessary
Feb.
March
As
a
through
shares
stock
fering
$30,000,000
It
the
sale
ofAdditional
proposes
registration
to
to
«
•
.
eooiooo
by
raise
.
«3g 000 000
tal
—
recent
through the
of
capithe
file
with
16 next, with public
schedule
tentatively
SEC
offor
Only
three
issues,
large, are due up for bids.
Monday will bring the opening
And
of
bonds
of
000,000
2,000,000 to 4,000,000 shares, with
-itin,
their
—n
—
a.
to
ideas
ft—
j
aside
stand
selected
for
issues
of
—
-il-
—
yield. But the dearth of
sues and
tories
cleaning
in
away
dealers'
to
and
price
-c
new
t~
is-
of inven-
hands
have
cag0piling up and while there is still
The following day bids will be a smattering of private or direct
scanned for an offering of $12,- placements, this end of the busi-
Louisville Gas & Electric Co.
value to $2.50 and inthe authorized stock from
short while back buyers
$12,500,000 30-year, served to virtually eliminate the
?* tenders f°r $12,500,000
30-year,
.
«rst mortage bonds of the Pacific supply,
Serv,ce Co- of Oklahoma, in ChiInstitutional investors find funds
step in its refinancing plan
it is proposed to change the pres-
a
inclined
reach
sus-
••"<.-
Only
were
is
yields
of tenders for
10.
ent $5 par
crease
none
11
lower
and
tained.
perusai 0f the list of prospective
—1
Demand 0{;d.
supply and demand
the
sale.
Tempo
'V'i'
asked
handle
3
planning
a
debts might be stirred up.
who
to be the largest single insurance
is
point where
Should
hope
to
and
The law of
levels
Fireman's^ Fund^ Insurance Co.,
major West Coast enterprise, is
trend
basis of
have
group
Slow
prevailing circumstances it is
who
S
rising
tempts at refinancing higher
pon
may
some
~
^
the
a
even
major hope
il.
yield
established.
about
e
of
are
prices to
average
gu^. ^
returns
there
continuation
while.
3.60%
for prime
the outpouring of new debt
3.50%
names
in
Market
but corpora-
either to have anticineeds
in recent
back and look
Underwriters
to
bit.
a
However,
+r\
nothing to
break
issues.
ideal
is
fare
thin
noted.
Huge
In
new
though industrial companies
underwriting
was
The
stifl ^rnisi^
Report
The
premiums of four to five points,
it
ing chiefly to the public utilities
as
Supply
lower-yielding obligations. A gieat a 20% stock dividend to be dismany such issues are new selling tributed.
at
on
'
Proceeds—For construction program of West Penn Power
Co. and its subsidiaries.
Underwriters—To be deter¬
mined by competitive bidding.
Probable bidders: Hal¬
by
& Hutzler;
Bros.
share.
per
Proceeds—For expansion program.
Underwriter—None,
but Putnam & Co., Hartford, Conn., will manage a group
to assist in obtaining subscriptions.
be
to
reported company plans to issue and sell
$12,000,000 of first mortgage bonds, series P, due 1984.
York.
competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Smith, Barney & Co.; Kidder,
long-term debentures
stock
if West
Feb.
Underwriters—To be de¬
construction.
new
.
■-ai'ltv
Oregon. Underwriter—Eastman. Dillon & Co., New York.
if Southern Indiana Gas & Electric Co.
Jan. 27 it was announced company plans to issue and
sell $8,000,000 of first mortgage bonds due 1984.
Pro¬
ceeds—For
May 19.
that company now plantf to
l-to-5^-year serial notes; $71,000,000'
20-year, first mortgage bonds; and $24,440,000 in sub¬
Canadian
l-for-7 basis. Proceeds—For construction
a
Underwriter—Smith,
on
announced
was
finance construction of
may
Stuart & Co. Inc.; Blyth & Co., Inc.;
Boston Corp.'and
Harris, Hall & Co. Inc.
stock
it
common
if Southern Indiana Gas & Electric Co.
27 it was announced company plans to offer to its
stockholders 114,166 additional shares of com¬
costs.
14
ordinated
common
mon
(EST)
issue $29,000,000 in
&
(2/25)
common
Price
held.
Oct.
Halsey,
First
mortgage bonds due 1984.
West Coast Transmission Co.
(jointly); Kuhn, Loeb & Co. Last negotiated equity fi¬
nancing was underwritten by The First Boston Corp.
plans to offer about
basis of
bonds, series F,
reported company plans to offer $15,000,Underwriters—To
was
expected to be received up to noon
to
include:
Feb. 25.
22,000 additional shares of its
that
,
(5/19)
competitive bidding. Prdbable bidders;
Hp.lsey, Stuart & Co. Inc.; White, Weld & Co. and Stone
& Webster Securities Corp.
(jointly); Union Securities
Corp. and Smith, Barney & Co. (jointly); Lehman Bro¬
thers and Bear, Stearns & Co. (jointly); The First Bos¬
ton Corp. and Blyth & Co., Inc.
(jointly); Kidder, Pea¬
body & Co.; Salomon Bros. & Hutzler. Bids—Tentatively
Witter & Co. to form a syndicate to
W. C. Mullendore, President,
it probably will be necessary for the
Dean
Light Co.
be determined by
Lunt,
Edison Co.
first and refunding mortgage
new
plans to issue and sell
company
&
obtain approximately $50,000 000
the
sale of additional securities in 1954. Probable bidders for
mortgage
announced
and
announced
ic Plastic Wire & Cable Corp.
Feb.
Hamlin
and
granted exemption from competi¬
was
Underwriters—To be *
Registration—Planned for Feb. 16.
000 of first
Meeting—Stockholders will vote March 3
California
stock.
common
Power &
Jan. 18 it
issue of 600,000 shares of common stock. Nego¬
will be entered into with The First Boston
company
White, Weld & Co. (jointly). Bids—Expected to
be received
Mass.,
Utah
offer the stock. On Dec. 30,
bonds due 1984.
Under¬
writers— To
be
determined
by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; The First
Bostori Corp.; Smith, Barney & Co.; Kidder, Peabody &
Co. and
Boston,
Ot/.'.
Light Co. (3/23)
reported company plans to offer publicly
was
March 23.
plans to offer to its
Jan.
Pittsburgh & West Virginia Ry.
$7,500,000
Curtis,
.au¬
Corp. and Smith, Barney & Co. (jointly). Bids—Tenta¬
tively expected to be received up to 11 a.m. (EST) on
bidding by California P. U. Commission on a pro¬
Corp.
Co., Chicago, 111.
Jan. 6
an
tiations
Peoples Finance Corp., Denver, Colo.
was reported
company plans to issue and sell
$300,000 of 6% convertible debentures. Price—At 100%
C.
&
doubling present
by competitive bidding.
Probable bidders:
Blyth & Co., Inc.; Kidder, Peabody & Co. and Merrill
Lynch, Pierce, Fenner & Beane
(jointly); Lehman
Brothers; The First Boston Corp.; Union Securities-
(3/15)
announced company
company
posed
Jan. 5 it
Underwriter—Paul
3
tive
Proceeds—For
To be determined by
interest.
intends to make
company
of America
Corp.
was
Southern
Feb.
about
and accrued
it
on
determined
approving issue. Registration—Expected about Feb. 24.
on
•
company
21
Buffalo, N. Y.
Pennsylvania Electric Co.
Dec.
announced
was
Sheraton
Jackson
Pacific's
of
it
18 it
200,000 shares of
$3,300,000 25-year 6% debentures (3% fixed and 3% contin¬
gent) with warrants attached. Proceeds—To repay loans
and for working capital. Underwriters—Paine, Webber,
American
91.25%
owns
Jan.
stockholders the right to subscribe for an issue of
repay bank loans.
Telephone & Telegraph Co., parent,
outstanding stock. Offering—
Expected before June 30, 1954.
1
None.
Corp.; Merrill Lynch, Pierce, Fenner
Bids—Expected to be received on March 30.
offering of its common shares in the United
States to realize at least $5,000,000.
Price—At par
Proceeds—To
was
Utah Power &
Securities
initial public
and
Pittsburgh, Pa.
aJ?V
announced company is increasing itg cap¬
Stockholders will vote Feb. 23
Jan.
was
Inc.,
thorized capital stock.
29
Montreal.
and
Wood, Gundy & Co.
underwriting. Proceedsworking capital. Office—
Fifth Avenue at Hamilton/ Pittsburgh
6, Pa. Meeting—
com¬
Co.; Salomon Bros. & Hutzler; White, Weld &
and Shields & Co. (jointly); Lehman Brothers;
Jan.
$30 per share. Proceeds—To increase capital and sur¬
plus. Underwriter—The First Boston Corp., New York.
Brothers;
pipe line from
ital stock in contemplation of an
—For expansion program and
it Scudder Fund of Canada, Ltd.
additional
gas
Ottawa
-inn"}
Jan. 20 it
&
& Beane.
shares of capital stock (par $5) onthe basis of one new
share for each two shares held.
Price—Expected to be
Toronto,
bidding.
Probable bidders: Halsey, Stuart &
Co.; Blyth & Co., Inc.; The First Boston Corp.; Kuhn,
Union
(3/16)
right to subscribe for 200,000
by
to
Loeb
Co.,
Insurance
determined
be
2,240 mile natural
a
fields
Trip-Charge,
petitive
W. A. Rattleman, President, announced that
plans to issue to stockholders of record about
14,
company
March
Union
To
Alberta
Underwriters—Lehman
Diego Gas & Electric Co. (3/30)
26, it was announced company plans to issue and
$17,000,000 of first mortgage bonds, series E, due
1984.
Proceeds—To. repay bank loans and fcr new con¬
—
Pipe Lines, Ltd.
was
Inc.
San
tration): Kidder, Peabody & Co.
Jan.
the
sell
Underwriters
it
construction of
Jan.
struction.
11
reported this company and Western Pipe
Lines, Ltd. will merge preliminary to the financing and
was handled by a
group headed by Morgan Stanley
Co., Drexel & Co. and Glore, Forgan & Co.
&
ing consummation of proposed merger of the two com¬
panies, it is planned to sell $9,000,000 of first mortgage
bonds, $2,500,000 of debentures and 65,000 shares of
preferred stock (par $100).
Proceeds — To retire bank
common
Trans-Canada
Jan.
stock
plans to
company
1,500,000 shares of common stock of Gas Service Co. of
Kansas City, Mo., at a total cost of $32,000,000. Follow¬
Underwriter—For
Corp. and White, Weld & Co. (jointly).
tive
Bell $14,000,000 of common stock and borrow $18,000,000
from banks in connection with proposed acquisition of
loans.
ceeds—For
but some form of debt financing is indicated.
Underwriters—Fori any bonds will be determined
by competi-
Public Service Co. *
was
program
reported company plans issuance and sale
debentures in April or May and
$25,000,000 of first mortgage pipe line bonds in
July. Pro¬
new construction.
Underwriters—To be de¬
termined
by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Stone & Webster Securities
$50,-
a
is
expected in the Spring.
The type of securities to be issued is still
undetermined,
$3,500,000 first mortgage bonds due 1984. Proceeds—For
construction program.
Underwriters—To be determined
by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; White, Weld & Co.; Kidder, Peabody & Co.
and Drexel & Co. (jointly); Kuhn, Loeb & Co. and Salo¬
mon Bros. & Hutzler (jointly).
Dec.
financing
was
of $20,000,000 of
27, G. H. Blake, President, announced that
000,000
sell in 1954 about
company may
was
if Tennessee Gas Transmission Co.
(jointly).
Metropolitan Edison Co.
Dec.
41
30-year
the
ness
a
is far from
year agQ
Wednesday Mystic Val-
,
as
robust
as
it
Accordingly, the
waa
sea-'
market is refleetine attemnt*
Gas Co. will offer $5,500,000
of first mortgage, 30-year paper
ot portfolio men to put available
through the
money
ley
same
medium.
L.
■jjf.iiiiWuiuA.
,i,f.
-vat
to work.
^
1
42
4
The Commercial and Financial Chronicle
(606)
Continued jrom page
,
.
velopments made its use
in
theaters,
department
railroad
.
/rts
,
,
stores,
virtually
w^s
Ow ers:
Home
By
(C)
de-
^ntouched
buildings, public buildings,- logrcaf COMequence of the use of
and even small retail stores.
air-conditioners in stores, offices,
In each field it became—a com- and factories. Having experienced
design of the building, design of
petitive necessity almost as soon
as it was introduced—first among
.
and
larger
Comproved it-
customer
for the
immensely
only draws
away from the esof * non-air-condi-
self immediately as an
valuable
it
aid;
the customers
tablishments
not
competitors, it also makes
them stay longer and buy more
because they feel better.
As
in the case of plant airtioned
conditioning, it is safe to say that
commerical buildings will ultimately have to be
air-conditioned
for
competitive
all
important
This
reasons.
the
in
sooner
time
After the room-cooler came the
commercial field,
the amount of
reaches
a
given point—estimated
by
the
American
Institute of
Management at 15% of the desir-
air-condition¬
data
Adequate
not
are
like
Some
over
arrived.
point,
Texas,
Houston,
"
-
apparently
York
City
A.
The
have
apparently
I.
states that
M.
next two
popular,
accelerated
coolers
room
have
demand for
consumer
central residential systems. These
systems deliver more comfort per
dollar and function independently
of outside temperatures,
The development of fully autois more than 18% of the 67,500,000 matic central heating systems also
square feet of floor space in the helped
lay the groundwork for
area's 343 reasonably modern but the central air-conditioning sys¬
non-air-conditioned
decline
or
JmSjthen m
in
buildings.
potential demand for airconditioning of business and com-
"
.
.
'
'
A
.
"
expensive
water
This,
item,
munities
and
an
corn-
many
enough
have
not
do
be
can
supplies to allow such high
consumPtion. Industrial
wa*er
of
number
builders
have discovered that the fully airconditioned home gives them a
a large
and growing
proportion of all such new struc¬
tures, plus a growing proportion
represents
speculative
competitive advantage
is
It
of the eveq larger number of such
structures now without air-con¬
modern
more
decorating
costs
an<* c°raJhercial buildings can re-
and
The
dential
units.
duplication
analysis
as
After
far
for
Units
ranging from 2 to 15 HP.
manufacturers
moving,
The
the
is
are
now
air-cooled
con¬
of
sh i
popularly
As
the
and
more
cycle
is
the
transfer of heat from one space to
value
is
overheads
costs
and
computed
This
to
at
the
room
cool
on
days
can
cost
New
the
at
reserves,
approximately
plant at Decatur, Alabama, which
cover
his
of
most
all
or
change in
a
wart
or
mole
which
of
rate
1,000,000
units
culty in swallowing
sistent
hoarseness
moderate
air
gravity
be
work
conditioning,
process
a Any change in normal
bowel habits.
After
Record
these
and Forecast
general
considera¬
converted
air-
to
...
with
alteration
are
a
•
,
relatively
of the
duct-
shipments reported in 1952 (Burea" of Census) totaled 341,000
at a retail value of $122,760,000. Factory shipments in 1953
'?!
a
retail
value
of
$315,397,500.
estimate that not
more than 800,000 units were sold
to consumers, some at consider¬
However,
able
we
retail
bottlenecks
number
0f
discount.
kept
units
a
off
Production
substantial
the
market
after July 4,
For other facts about cancer'
ing
that may some
(D) Limiting Factors: Theoreti- producers who will be in the
cally the
potential
demand
is market range from 75 to 90, comenormous; some practical limita- pared
to 58 during 1953. This
day
save your
life, phone the American Can¬
cer
or
Society office nearest
you,
write to "Capcer"-in care
Of your local Post Office.
American Cancer
Society
t
well
view of the fact
components of
In
many
svstem
number
may
a
be
that the
central
made
different
of
by
nro-
mUerem Pr0"
nuD,1>er.01
any
for air-
as
expect
..the jsale
,
when the peak
of the buying season was passed.
The remaining 11,500,000 homes A
substantial
inventory
will
are
equipped with steam or hot therefore be carried over to 1954.
water
systems,
and
can
more
\ye anticipate a highly competireadily be air-conditioned by us- tive year for room-coolers in
cough
as
Installation
a
systems,
...
conditioning
Q Per-;
or
can
homes
7,500,000
by
.....
Bii
very
"
"
~
Sales
housing is still being built
Another
heated
Persistent indigestion or diffi¬
a
^eostClxanges.-. fronv 7()(y
f the Production of these
requires. These units are cur¬
jgr50fna^U&0a depending on size 70% of the Production of these
rently produced by several im¬
and make of the unit, whether a compressors is for air-conditionportant companies- for local areas
and special uses. Under present cooling tower is used, and whether ing, and the balance is used for
conditions they are noil expected
air-conditioningH
existing homes
equipped
with central heating
systems,
5,900,000
have fofced
warm
aircirculating
systems
which can readily be converted to
year-round air-conditioning, using the ductwork already in place.
a (above) B Unusual
bleeding or discharge" D Any
assumes
^
of
Of the 25,000,000
heal
figure
much as the basic cooling-cycle
equipment. It may also include
production costs for cooling-cycle
equipment
used
in
industrial
station
begins production this month.
Looking
further
ahead,
we
pump
which
tions, the estimated sales for 1953
and many real estate ex¬
and forecast for 1954 will be con¬
expect it to continue that
sidered according to the type of
way. But this represents only a
part of the demand for residential e(lulPment.
air-conditioning.
(A) Room-Coolers: Factory
signals"
unclassified
other
,
perts
H Any sore that does not
and
of ^commercial £ucers m different cases, genpackaged equipment to approxi- eralized figures have little meanside air.
mately double in the five^years, jng> However, certain statements
A
larger version of this ma¬
gnd double again in the succeed-b
d
Uh confidence.
chine
can
be
used
for
central
ing five years^ until., it levels out.
* ■
heating and cooling. ItJburn&-no
at approximately |500,0QQJ1£M).
The biggest single component of
fuel, but consumes ample quantail" value) "for "2o6,G00 to 300,060 these systems in terms of cost is
by extracting heat from the out¬
year,
are—
bil—
also includes the costs of structural alterations, ductwork,
plumbing, wiring, electrical equipment,
and
other
related
costs
equal to four or five times as
one
warm
It is
1960 the
by
expansion of the industry,
which is in fact taking place. It
Ip reducing the tempera¬ equalled the production totals, so
the normal inventory respace it tends to raise only
the temperature in the other, par¬ mains. The outlook for 1954 is for
an increase of at least 50%
based
ticularly if such space be con,
.
upon
additional production cafined. Where the cycle is reversed pacity installed this year or now
and so used for the purpose of under construction, including the
heating it is commonly known as new Worthington Corporation
ture in
that
figures
get.
uses.
contractors'
as
service
volume
Sales
said
to
thumb-' great
rough
a
satisfactory
difficult
plus $500,000,000 of equipment for trains, airplanes, auto-
another.
construction systems.
reduced""!^ elimiDesigns
system.
doctor.
be-
lion,
approximately twice the manufacturer's price, to allow for such
FOREMOST DAIRIES, INC.
NOTICE OF REDEMPTION OF
Notice
individual
room-coolers.
6% PREFERRED STOCK
factor,
Except for the 5,900,000 homes
heated by modern forcgfl~air~sys>-
ventory,
air-conditiomng~~system
a
plus the carry-over inwill make for a heavy
selling year. With demand concentral tinuing strong, especially for re$i-
in.
-
hereby given that, pursuant to resolutions of
Foremost Dairies, Inc., a New York
corporation, has called for redemption on March 31, 1954,. in
accordance with'the terms of its Certificate of Incorporation,
as
be
amended, aH shares of its 6% Preferred Stock which shall
outstanding
such date, at $52.50 per share, plus an
the accrued and unpaid dividends on such
on
amount equal to
shares, but without interest, to such date of redemption, such
accrued and unpaid dividends amounting to 75^ per share,
or at the rate of 6% of the $50 par value of each share from
January 1, 1954 to and including March 31, 1954.
Payment of the redemption price of $53.25 per share will
IMMEDIATELY at any time on or after the date
hereof at the office of The New York Trust Company, Re¬
be
made
100 Broadway, New York 15, New York,
presentation and surrender, for the purpose of redemp¬
tion, of the certificates representing such shares at said of¬
fice, accompanied by a duly executed Letter of Transmittal,
copies of which may be obtained from the Redemption
Agent.
•'
demption Agent,
upon
Foremost
trust
with
necessary
of
6%
Dairies, Inc.
said
The
for such
New
on
January 28, 1954 deposited in
Trust Company, all funds
York
redemption.
All rights of the holders
Preferred Stock will cease and determine on March
reofeive the redemption price of.
31, 1954, except the right to
upon
dividends or interest from and
presentation and surrender of their
respective certificates.
From and ajfter March 31, 1954, the
their stock (but without any
after
said date)
transfer books for the 6%
Preferred Stock will be perma¬
nently closed and no transfers thereof will be made.
1954. Estimates of the number of
tions remain to be considered-
temSi_the Installation of
is
its Board of Directors,
'
The other six danger
year-
tion equipment will reach $2
p m e n
jy 10,000,000. Factory shipments mobiles
distributors'
refrigeration
are
being constantly
ventilation, atticfans, improved to reduce installation
breezeways
and and operating costs, save water,
corners,
builder
should always mean a visit to
in the
retail sales volume of central sta-
t s in 1952
totaled 55,000 units at retail value
Factory
field
most
are
the
suits
this
jn
our
I
your
curve
(D) Central Station Equipment:
excluding
possible,
as
following reCommercial
Packaged
gives
residential field toward which all
flyscreens^-and using fixed win- eliminate noise, and promote effidows instead; of sash or-casement ciency of all types of air-condiwindows. With these savings the tioning equipment,
cancer...but
upward
round residential units is just
many
cross
extra
danger signals
expected
competitive retail
coolers and year-round resi-
room
pensive item. The answer in the
costs;be
can
nating
that may mean
estimate
be
air reduces Jto present serious—competition
cleaning
and for conventional air-conditioning
householder's
the
commonest
our
can
cleaner
comfortable;
ditioning.
pT.in the breast or elsewhere
[-is the second of the seven
is
It
The market shows to double that,
of the characteristics of the
cooling towers, but for the home¬ in .1953 totaled at least " 75,000
owner a
cooling tower is an ex¬ units at retail value of more than
"
a^so Played a part. An increasing
buildings, as in the case
buildings, therefore
industrial
m
somewhat under
was
volume—that this year's
home-appliance field, with
producers
in 1953
jness
units ,a year by 19,63.
the complete refrigerating cycle—
is most effective in areas
(C)
Year-Round
Residential compressor^ condenser, evaporator
are
neither very cold in
winter
nor
excessively hot in Units: We estimate 10,000 units —and motor. In large structures
tem, which is a logical extension summer;" the greater the differ- produced jn<iipldlnl 1952; 50,000
of the same technique.
ence Tri Temperature,
the greater to 60,000 units in 1953; perhaps- the prevailing practice is to install
The postwar housing boom has the capacity'of the machine must 120,000 units in 195U Tile average centrifugal
types ranging from
be and the more electric power it cbstTTb the consumer, Including 150 to 1)0oo HP. At present about
The
of
condensers.
cycle room-cooler, which is built
three years*
or
By making home air-condition¬
ing
1947,
mercial
systems—also—require
amounts,..joJLJKaieiUta- cool
-
we
ex^ statistics, it is clear that the busi-
room-coolers, which $100,000,000.
stabilize
many
be
can
muph of The
v
price-cutting.
are
fifty-one new airconditioned
buildings
with
a
total floor space of 2,332,700 feet
have been built, are under construction or planned for construetion, by 1955 in the main business
area
(south of 61st Street). This
since
nackr
or
air-conditioning business, and is
expected to outstrip room-coolers a heat pump. An interesting apis
that of the reversein retail dollar volume within the plication
^
_
already past it. In New
this
approaching,
are
or
the
a
1952 in significant quantities —
10,000 units. It is potentially
the fastest-growing branch of the
yet
available to show how many cities
room-coolers
-Central
large
denser.
separate air-cooling unit to
be added on to the home-owner's
able space available—it becomes existing central heating system,
a
competitive necessity for all
This type of equipment reached
other buildings in the city.
the market for the first time in
in the United States have reached,
0f the
builder.
array
a way
ginning. It is * expected fo hlf700,-~
rJ)06 units "~by""J¥58 and pernaps
(B) Commercial Packaged ,1,000,000 a year by lg687"whlch
range with limited ductwork-jcan
Sales
be installed at less cost. However, Units:
reporting
data
on
would be the peak. This field
this system may beTes^effrcIentl equipment of this type has not alone,
including
all
its com¬
and may-frivnlve /'r^mr-TT7T7TlTl?Tnal be e n
adequately
standardized, ponents, would then mean a busiand
there is some overlap into ness of at least $1.5 billion-a year,
electric wiring.
providing central heating in
winter and cooling in summer; or
as
and
engineer
individual
leading
an
air-conditioned offices in any city
gj-ehitect
system. This can be sold as
integral year-round system,
ing
When
however.
central
residential
come
may
first
the
was
answer
smaller ones.
the
to
down
in
to this demand. Hanging
in price from $200 to $400, easy
to install and inexpensive to operate, units of this type began
selling in large quantities soon
after the war. Retail sales volume
in 1947 totaled $19,374,000; the increase has been so rapid that 1953
retail sales totaled nearly 15 times
as much.
These appliances are also suitable for may commerical uses, but
residential demand accounted for
75% of last year's sales.
establishments, and then by stages
fort
it
room-cooler
The
ingenuity
the
and
:r."ki.:!hiLc°nsumer;if^^
his home.
u
wants
now
expensive
more
sired>
de-
system
air-conditioner
office
the
residts
^pected Jo take
jem depends jn each case on the ^demand pr
until
_
soiu.tion to the prob-
cogt and
after ttiB war. ~xhe d6fhahd is a
hotels, restaurants,
cars,
IHnurglerTti^ctul'es the actual
rp,
~
„
T,
The
possible Qiarket for home air condrtiomn g
technical
wherr
1930's
Thursday, February 4, 1954
.
„to climb. the unit goes into a new home
building—residential, commercial, j^.es iigure. tQ_contin
or
liTdiTstrial—involves a certain jint.il it, xea^e^ a_pegj^_..Qf, a hnutf or an old one requiring installaamount
_ol expensive structural lt500,000 units a year, retail valug-^tion of a suitable distribution sys"alterations and the addition of air $54000 000 beffiFT lpLjEbLihal_lem.
time volume production of
ducts or water pipes." ~
year^
in
the absence
of complete
6
The Ail-Conditioning Industry
and
..
any
dential
use, we
expect the annual
By Order of the Board of Directors
FOREMOST
DAIRIES, INC.
By—Paul E. Reinhold
Chairman of the Board of Directors
January 28, 1954.
Number 5296
Volume 179
The Commercial and Financial Chronicle
.
.
.
(607)
industrial work; but the percent¬
marketing complete units in com¬
petition with their own customers.
air-conditioning is
rapidly increasing.
age devoted to
There are at present three
I
manufacturers
tablished
Success in this line will depend
on
two main factors — effective
es¬
distribution
this
of
equipment, of which Worthington
one;
all are expanding their
capacity.
in
Expansion
sion
in
demand
such
ucts,
this
field
corresponding
a
for
related
As
the
:
air-conditioning
tential demands,
a
position
indus-
•
po-
be
certain amount
contraction
justment
f
•
,
before
and
take
they
are
H.
E.
A regular
Cents
types of
will be affected in
ticular
(1)
In
ways.
Paul E.
160 State
PINE
SPINNING
The Board
of
view,
par-
future
the
rQund.rasidential
unit,..there-will
outlined
earlier
this
in
the
conversion
to
and
Much
.
is
ness
home
to
central
who
of
the
room-cooler
done
now
either
tion
by
of
manufacturers than
busi-
rely" wholly
established
the
on
on
companies,
buy
or
Conclusions
ready to market under their
own
Declared
10
^few"yearsT but
many of the^xom"panies Jn volvecLhave other ap¬
pliance lines to fall back on If
are
squeezed
of
out
the
room-cooler business.
(2)
year-round residential
unit business is still in its infancy,
.
the
we
expect it to develop along
addition
pf
their
sheet
own
Furnace
makers
cooling units,
adding
are
is
as
new
pro¬
sign yet of overcrowding.
Advances
in
engineering
no
(3)
air-conditioning
heating units.
ponents
are
also
at
dividend
of
twenty-five
cents
HARBISON-WALKER
payable
January
Directors
March
share cn
20, 1954,
1954.
per
Also declared
share
to
28,
has
1954,
declared
M. J.
8,
2,
Pa.,
been
of*
record
25,
1954.
at
the
15,
close
DIVIDEND of
a
COMMON
to
payable
tional
shares,
cash
rate of any
the
of
March
29,
for
25,
1954
each
1954.
lieu
directed
was
applicable
approximate
at
100
In
Ssso
to
rate
be
paid
ord
market
OIL
in
COMPANY
new
CRONMILLER, JR.
President and Secretary
has declared
Cash Dividend
28,
the
on
$1.00
on
and
the
on
January
close
February
of
to
8,
of
of
in
eveiy year
business
on
1954.
TITLE
GUARANTEE
of
27,
1954
Atlas
the
Com¬
the
on
Common
Stock
Preferred Stock Dividends
I
The Board of Directors of
''M
THE FLINTKOTE COMPANY
;
Safeway Stores, Incorporated, a Maryland Corpo¬
ration, on January 26,1954,
January 29, 1954.
declared
Secretary.
H. Y.
quarterly
dividend
has
been
of
$1.00
declared
Dividend Notice
\
per
Directors
of
Cities
Service
declared
a
share
its $10 par value Common stock,
quarterly dividend of
8, 1954, to stockholders of record
one
Company has
dollar
($1.00)
at the close
share
has
Common
been
close
of
$.50
declared
Stock
on
per
the
G.
CHRISTIAN,
Secretary
CLIFTON W.
Feb. 3, 1954
are
on
the 4% Preferred
payable April 1,1954
stockholders of record
24,
1954.
GREGG,
on
behalf of stock¬
the
February 26, 1954.
purchase
whole
share
which
the
of
the
same
fractions
were
at
one
(1)
price at
sold, by
notifying the Company in writing
and paying the said per share price
without any additional charge for
expenses of purchase or sale.
CASH
at
DIVIDEND
Trustees of Title Guarantee and Trust
3,1954.'
Company have declared a cash divi¬
dend of 30 cents per share, desig¬
MILTON L. SELBY, Secretary
M
on
the close of business March
payable March
business Feb.
Vice-President and Treasurer
EKLE
j
Stock
1954.
10, 1954, to stockholders of record at
the
of business
1954.
toward
to,
per
payable March
j
$1.00 per share on its
4% Preferred Stock.
If
1,
quarterly dividend of
be united into whole shares and sold
Each stockholder receiving a check
dividends
March
the close of business February 11,
1954. Only whole shares will be so
distributed. All fractions of shares will
stockholders
Common Stock dividends and
A
February 26,
(1) additional share for
(10) shares held of record
in payment of a fractional share may
use it on or before March
31, 1954
the
|§
ness
each ten
on
on
10% stock dividend in the
one
par
P
to
as a
60(* per share on
Company's $5.00
§
1954,
1954
form of
value Common Stock.
stock¬
at
will be distributed
ceeds thereof will be mailed to such
the close of busi¬
15,
25,000 shares of
value stock thus authorized
holders entitled thereto and the pro¬
payable
March
par
by the Company
$4CumulativePreferredStock
holders of record
additional
|
the
on
following
The
$8.00
If
ig
A
share
the
quarterly dividends:
HEW YORK 20,
i
an increase in surplus from
$1,300,000 to $1,500,000 by trans¬
of a further sum of $200,000
from undivided profits.
fer
j
of
Corporation.
CITIES SERVICE COMPANY
on
approved
Walter A. Peterson, Treasurer
February
Company,
January 28, 1954 authorized
increase in'capital from $2,000,-
000 to $2,200,000 by transfer of
$200,000 from undivided profits and
Common Stock
©■
of
Company
DIVIDEND
antee and Trust
quarterly dividend of 404
share has been declared, payable
March 20, 1954 to holders of record
at the close of business on February
stockholders
business
since 1899
record
an
A regular
1954
on
the
Secretary
TOWNE MFG. CO.
and Trust
PLAZA
February 11,
&
Cash dividends naid
notices
30 ROCKEFELLER
on
THE YAIE
March 11, 1954,
stockholders
to
of
15,
F. DUNNING
This dividend is
1954.
payable
rec¬
March
capital stock of
share
per
of
close
Executive Vice-President
a
Street, New York 5,N.Y.
on
per share
declared
past
1954.
The Board of Directors
at
of
jersey)
F.
Vice
the
at
business
STANDARD
fraction times
value of
each
(incorporated
G.
out
stockholders
common
frac¬
of
per
earnings, payable on
April
I,
1954,
to
Feb¬
of
1954,
declared
was
rectors
CENTS
the
28,
by the Board of Di¬
payable
record
share.
common
share
&
April
3% COMMON STOCK
a
April
shares
common
held
$26,
FIFTY
STOCK,
shareholders
Also declared further
the
record
SHARE
fifty cents (50$)
1954.
DIVIDEND
3
of
PER
Jan.
dividend No. 264
quarter
Common and
dividend
W. B. ASHBY,
The Board
On
Atlas Corporation
and
28,
Jan.
Stock
1954,
of
501
1954.
FOX, JR.,
Treasurer
for
per
quarterly
Capital
pany," payable March
264th DIVIDEND
stock¬
to
February
1954
declared
shareholders
shares
at!
4,
record
been
DIVIDEND
of
ONE
PER CENT or $1.50
PREFERRED STOCK,
payable
cn
1954
4,
11,
ruary
of
of
has
31,
1954
ONE-HALF
(D/27,)
Apr'l
6,
March
holders
Pennsylvania
of
Board
ending
share
per
Stockholders of Title Guar¬
STREET
Fifty Cents ($.50)
has
GRIFFIN,
DECLARES
Incorporated
A
of
February 11, 1954.
CORP.
the efficiency, reliability and
COMPANY
RACE
Feb¬
STUESSY, Secretary
January 22,1954
Dividend No. 49
METER
payable
stockholders
to
M. E.
notices
1513
1954
Secretary-T reasurer
30 Rockefeller Plaza, New York 20, N. Y.
~
Phila.
the Common Stock
on
declared
26,
record
Treasurer
share
been
ruary
the close
cost of the product.
33 Pine
AMERICAN
regular quarterly dividend of
per
com-
assembling
dividend
A
STOCK
Manufacturers of the basic
1954
shares of the Com¬
sales distribution and service and
dividend
1,
11, 1954.
THOS. A. CLARK
January 28, 1954
March
on
1954, to stockholders
on
payable
stockholders of record February
February 5, 1954.
on
design are
stantly, and more
adding
are
to
has
and
and manufacturers
of
-
becoming
ducers enter the field, but except
in the case of room-coolers there
upon
metal work.
'
is
2,
Preferred Stock has been
declared
the outstand¬
on
Common Stock, payable
March
($0.25)
March
Competition
continually keener
de¬
quarterly dividend of
share on the 5% Con¬
per
YALE & TOWN E
per
years.
(2)
has
The transfer books will not close.
occurring con¬
can be expected.
much the same lines as the home
(4) In the long run, growth and
heating business — hundreds of
survival will depend upon the in¬
small manufacturers doing a local
dividual producer's ability to keep
business, buying the main comabreast of developments, both in
ponents from a few major sup¬
demand and
design; upon good
pliers and assembling them with
but
,
The
-
share
per
ing
A
and
(1) The air-conditioning indus¬
Competition in this group \yill try is now entering a boom phase
be exceptionally keen in"the next which is expected to last at least
Directors
of Eaton
Pittsburgh
To sum up, the following gen¬
eral statements may be made:
unit
a
of
quarterly dividend of
a
30<^
H. C.
the
label.
they
25c
REFRACTORIES COMPANY
product
Board
clared
those who'
principally
air-conditioning market.
or
regular
31%*
NOTICE
vertible
The
..damaiiiil^^effect'^oir^diveTSllied
manufacturers
assemble
A
DIVIDEND
payable February 25, 1954,
components purchased from
other
•
CORPORATION
February 1 1, 1954.
of business
hand, any contrac¬
air-conditioning" equip-
sta-
cottages.
summer
appliance
from
'
PRODUCTS
of record
shareholders of record
On the other
q^enf"volOrne* after the boom ends
—tiorr^'J:quip;meH».„Wilula _be "fqcT
Ic.°jtl£; and , by small TioTels, iygul^haver artprobortionately less
motels
'.-Cleveland 8, Ohio
NATIONAL DISTILLERS
cents
The Board of Directors
common
pany,
paper
the air-condi¬
marginal Jncomj?
tioning business at a high level.
canp^tiFord full" air^Mmioning^ by,-.old buildings
where
Street
st'
Inc.
Manufacturing
Company has declared a dividend
of Fifty Cents (500
per share on
would tend to keep
_
4
THE WEATHERHEAD COMPANY
DIVIDEND NO. 129
recession, for under recession
conditions the competitive factors
year-
_always be a-'market. reprp^ntPH
who
MORRIS H. WRIGHT
Vice President and Treasurer
-300; Eost 131
boom
-ness
PTOrmrT fo" the
by
at
April 1,1954.
on
Street, Boston, Mass.
Directors of the Berk¬
„
provides
them with a valuable growth line
and tends to protect them against
the possibility of a general busi-
While the room-cooler will
for example
15,
to the holders of such stock
Crocker, Secretary
'NC
ASSOCIATES
Cleveland 10, Ohio
the'lmmediate
air-conditioning
significance;/'
_soon _vi p'ld
Company, payable April
1954,
the close of business
mailed
by the Old Colony
Company of Boston, Dividend Disburs¬
ing Agents.
in***)*#****its**
over-expansion.
companies
different
From the investor's poinfof
we
see
these factors as of
;
be
Trust
'
•
Thy Weatherhead Company,
January 14, 1954, a Dividend
of $1.25 per share was declared
upon
the $5.00 Cumulative
Preferred Stock
of the
quarterly dividend of Seventy-five
per share has been declared
pay¬
will
of
the
••Mii
different
tors
February
Checks
President.
industry "boom in substantially the same January 28, 1954.
settles down to the long haul of way.
LOJL1LOJLJLOJUL5LOJIJLCJLOJIJLG
meeting the market for replaceWhile their operations in other
ments, improved models, and new lines may to some degree limit
construction.
their air-conditioning production,
EATON MANUFACTURING COMPANY
Many factors enter the picture, they run less risk of uneconomic?
and
(75 fi)
meeting of the Board of Direc¬
a
held
15, 1954, to stockholders of
record at the close of business
February 8,1954
ditionmg equipment' among^thpir per share on the Common Stock,
products "tsuch • aS Worthington payable March 1, 1954 to stockholders
C'OTpofation) are in a position.4p of record February 8, 1954.
take
MALCOLM G. CHACE, JR.
advantage
of~ the
current
read¬
Boston, January 29,1954
dividend notice
DODGE, Treasurer.
of
.
At
<S)
able
they
in a
advantage
COMPANY
T4RJCS1
February 8, 1954.
Diversified manufacturers^ shire Fine Spinning Associate?,
who include a full line of air-con.7 has declared a dividend of 25
backlog of unfilled
is wiped out there will
some
on
notices
The.Mark of .Quality
MANUFACTURING
shareholders of record at the close
to
of business
(4)
the
demand
.
to
that
extent
shifts in demand.
of over-crowding will result.
When
the
make all four lines,
Growth Factors
■
To
if
W
room-coolers,
ment.
Ill
i try expands to meet the huge
ex¬
dividend
Pepperell
($1.00)
per
packaged
units, year-round residential
units,4 and central station equip¬
towers.
;
dollar
one
notices
*
share has been de¬
clared on the Capital Stock of this
Company, payable March 8, 1954,
the
tween
dividend
57
Bay Mining
A Dividend of
necessity of correctly
analyzing market trends and bal¬
ancing their production as be¬
prod¬
NO.
Smelting Co., Limited
(Canadian)
Manufacturers devoted
with
automatic
as
and
clusively to air-conditioning and
refrigeration equipment are faced
will
expan¬
controls,
blowers, electrical equipment and
wiring, sheet metal, and cooling
'
Hudson
including servicing,
efficiency of the
product.
(3)
notices
DIVIDEND
and the cost and
-is
•produce
dividend
43
v,
January 26, 1954
nated
as
the
first
annual dividend
regular quarterfor 1954, payable
to stockholders of
February 26, 1954
record on February 11, 1954, in¬
cluding those whole shares which
result
from
the distribution of the
stock dividend.
•
WILLIAM H. DEATLY
.
President
'
The Commercial and Financial Chronicle
44
Thursday, February 4, 1954
.
..
(608)
Starting with the 80th Congress,
BUSINESS BUZZ
Bob
has presided
Lee
heart
Washington
from the
Nation's Capital
WASHINGTON, D. C—
been made public
pretty good idea of
Enough
has
to
a
give
details as well as the
the main
the Presi¬
general objectives of
dent's housing program.
First there
Advisory Commit-
the Housing
*
Then
tee.
housing
the report of
was
the President's
came
(for text see
message
18). For the most part, the
adopted the recom¬
mendations of this study Com¬
objective
4
de¬
lessening
of
flect the "behind the scene" inter¬
pretation from the nation's Capital
and may or may not coincide with
the "Chronicle's" own views.)
C-v
Mm
'
*
(This column is intended to re¬
fl v/\||
JL m
JL
left-wing
a
spending plans.
bureaucrat's
A
Behind-the-Scene Interpretation*
of many
out
•
•
•
in¬
over
knocked the
have
quiries that
pendence upon the government
for
housing.
of
giving
liberal
more
would
to
be
put
govern¬
behind mortgages
ment backing
so
purpose
market
the
than
would
take
the
For
guarantees
lenders who would not other¬
provide
the
credit. This would increase
de¬
wise
do
would
so
pendence on government.
page
President
his departures
significant. Fi¬
mittee, although
vtere
therefrom
Cole, Admin¬
istrator
of
the
Housing and
Home Finance Agency, ampli¬
fied upon the President's pro¬
gram at a oress conference.
M.
nally Albert
^
general
Mr. Eisenhower's
by him or those
defined
been
has
philosophy
governmental
for him, as variously
middle of the road, progressive
who speak
looking, humani¬
toward individuals, and
forward
and
tarian
conservative
economic mat¬
on
ters.
As outlined by
the
the President,
housing program
proposed
probably have as large a
monetary involvement
(direct
and indirect), as any of the many
welfare objectives he is urging
would
Congress. The housing pro¬
upon
also would have, if enacted
as he wants it, an impact upon
the lives of millions of indi¬
gram
the
in
viduals
a
development
of
every metropolitan area.
So it is, as it were, Specimen
growth
and
welfare
No. 1 of the Eisenhower
program.
Stated
President Has
Objectives
have about four
programs
of
Promotion
(1)
volume of housing
Provision
(2)
high
a
construction.
of
"conditions
under which every one can
ob¬
tain good housing.
Fostering
(3)
of
two-thirds
community
improvement.
(4) The making of the hous¬
business
less
dependent
upon the government, and re¬
liance upon the private enter¬
ing
prise system for housing.
Expansion
however, the system of
grants would be ex¬
tended beyond mere slum clear¬
and
ance
and
Actually, however, what the
proposes is a vast
expansion of government inter¬
into the housing busi¬
ness
both in the form of in¬
vention
direct
of
aids, and also in the form
aids.
direct
tation of salvable areas,
borhoods by
proposes
to
expand the government system
of
insurance
loan
all
replanning, remov¬
and
reorganizing
playgrounds,
(this by
streets and traffic, and
guaranteed loans) physical re¬
of
deteriorated
habilitation
structures."
Seeks Federal" Leadership"
over
the
President
leadership" in
the
Furthermore,
"Federal
seeks
the
replanning and re¬
virtual
called,
the
for
benefit
of
the
borrower. He would make gov¬
So
Federal National
the
Mort¬
that:
case
the loan and
available, to
guarantees
the
money
where
some
government
the
95% and
between
housing
Cole
clear that
it
made
in¬
tervention were enlarged, aid
of no one kind would likely be
this
once*
of .Federal
area
given unless a city lived up to
Federal standards for replan¬
ning
urban
and planning its entire
development. He specifi¬
indicated, for example,
present statutory en¬
titlement of a
city to public
cally
that
the
city
be held
back if the
also
not
were
existing
under
money
of
a
local
"public
authority" which ini¬
the money, but
gets back not less than 90% from
the Federal Treasury in instal¬
borrows
tially
under
firm, irrevocable Fed¬
a
eral pledge.
hower means by
to
ing"
Eisen¬
"private hous¬
it
distinguish
about
other
all
It
clear
made
was
the
by
case
standards
is
nicipality
that
the
not
Congress,
case,
determine
Administration,
by which
cut
off
or
grants.
thought it
would not be feasible to write
he
said
or
in¬
guaran¬
a
insured mortgage to the
National
Mortgage
sociation shall purchase
centage
stock
of
of
its
As¬
a per¬
placements
and
FNMA,
FNMA shall rely
not sell in
the market; or
.»
case
to
steam
boom
as an
(2)
housing
"anticyclical" device,
up
the Treasury through
can
out the
pour
As
a
President
the
In
wants
a
the FNMA
removing
de¬
the government,
program
pendence upon
for
whole
for stop¬
the President's plan as a
like
a
program
in
also that
primarily upon
a
on
used,
as
Provided
scribed
liberal
able
an
equal
footing
munications
Commission
what members of
tions
Committee
was
consider
of outside accountants and out¬
into
for new housing.
a
city followed pre¬
Federal
standards,
credit
under
insurance
for
would
be
government
avail¬
loan
modernizing old
housing.
Thus, in the field of indirect
aids, the government under Mr.
Eisenhower's program would be
*3u-
sparking a
large volume of
construction, making it easier
for millions more to get better
housing.
Mr.
Eisenhower,
however,
would not be fulfilling his No.
More to
Once
303,
No.
Report
Scurry-
$2—Dept. CF
24, Major L. L. B.
Angas, Inc.*
New
Avenue,
Lexington
17, N. Y.
Not Stop
Cannot and Will
Thij^Recession in Time
Report N^J02, $2
CF-24,
Major
Inc., 480
Lexington
New York
—
Dept,
Angas>
L. L. B.
Avenue,
17, N. Y.
WE WILL BUY-
businessmen to probe
government
requests
40c.
(paper),
Prepare
his
superb job in organizing teams
standing
Ravenswood
Chicago 40, 111*
4660
the Appropri-
appropriation
and prune them down.
Barrington Court, Inc.
Congress Street Associates
Maryland Apartments, Inc.
statutory standards.
for
Corporation,
"liberal" op¬
Com¬
Dartnelli
Girl—Mary Parr—The
Why Government
beneath-the-surface-
member of the Federal
Successful Business-
Poise for the
York
behind the
Ill>
(paper), $5.00.
ing more matches.
Economizers Hit Lee
Mich¬
1,
Chicago'
Avenue,
480
potent
Clear¬
Commerce
ing House, Inc., 214 North
igan
In¬
and Fi¬
(Residents and Non¬
residents)—
ping playing with fire by strik¬
Massachusetts
ernment-sponsored credit avail¬
able
duciaries
Avenue,
money.
housing business from
the
,
to New
dividuals, Partnerships
—
mu¬
a
from,
benefits from this enlarged sys¬
Cole
stitution which sells
Federal
do
loans)
position to Robert E. Lee to be
While the President proposes
teed
(includ¬
ing the "experimental low cost
housing"
$4.00;;
York State Income T^xes on
mortgages
the President proposes
factor
Open
that each mortgage lending
phases of housing.
of
forms
(cloth),
C.
D.
6,
Monatt's 1954 Guidebook
newly-
(1) In case any of the
The
the
would
specifically so
open
liberalized
A
ficiently well to satisfy Federal
authorities
kept
from
Government Channel
and
mortgage
States
—
(paper), $2.00.
i
"public housing."
Keeps
insured
the
ton
between
channel
Treasury through FNMA
looks
The former is what Mr.
suf¬
doing
of the loan
ments over the life
The
fact.
1954
Brookings Institution, Washing¬
to make
capitalized"
"privately
FNMA
be
this
Foreign Policy
He does not propose
within the Hous¬
ing and Home Finance Agency.
nicipal improvement.
Mr.
Chicago
Avenue,
Major Problems of United
Treasury
ernment-guaranteed through
In
debentures
the
own
rather than direct access to
in
another agency
of its
sale
the
Assn. would (using direct
Treasury money)
"buy" these
low cost housing mortgages gov¬
gage
mediary
Mr.
so-
would not sell on a
"decaying areas" and other mu¬
tem of Federal loans and
loans,
40 years
free market.
long-range planning. Then there
would be loans and grants for
zation
repair
like
something
for
100%. Under the present "public
housing" program the govern¬
ment deals through the inter¬
lot. He would improve moderni¬
and
comprehension that such longterm loans for low interest rates
both
match state funds for
The
—
Corporation, 4660
40, 111. (paper), 40c.
makes
Federal
111,
40,
Marilyn French
—
Dartnell
Ravenswood
building of entire cities over a
to
look at his
another
references, B. P.?"
period of years. The President
authorizing
Chicago
(paper), 40c.
turning
ing congestion, providing parks
Cor-
Ravenswood
4660
o n,
Avenue,
Girl
take
better
we'd
"Think
pro¬
healthy neigh¬
them into sound,
t i
Keys to Etiquette for the Business
jects. It would go for "rehabili¬
shall,
Eisenhower
Mr.
housing
public
law would
President
ppfti
8***^
Eisenhower's pro¬
Dartnell
Frailey—The
p o r a
gram,
loans
housing
Pushes
E.
a system of loans and
Respecting the latter,
government pays 90%.
Under Mr.
Broad;
20
to Write Better Letters—L,
How
grants.
the
Magazine,
Street, New York 5, N. Y.
cost,
the
of
Department C, The
—
Exchange
through
funds
distinct stated objectives.
12 issues
for1
urban re¬
development,"
and
"public
housing." Respecting the former,
the government pays not less
than
"The
issue of
current
Exchange"—Subscription $1 for
Treasury
available only
are
clearance and
proposes
President Eisenhower's hous¬
ing
direct
present
subsidies
"slum
the
—In
direct aid in housing.
At
Stocks Better
How to Understand
government's
the
expanding
the
affect
would
It
decade.
of
course
Pushes Direct Aids
Mr. Eisenhower also proposes
Develop New Form of
Oliver
Public Housing
Pelham
The Administration wants an
Cities
Realty
Building Trust
Hall
Company
Regent Company
"experimental"
(it says) sys¬
of very liberal, long-term,
low interest rate loans which
Roosevelt
Company
tem
time replace "public
housing." The Advisory Com¬
mittee proposed no down pay¬
250
loans; the
dicated
maybe
dollars
some
a
per
couple of hundred
unit, might be re¬
FOREIGN
SECURITIES
50 BROAD STREET
TEL:
HANOVER 2-0050
•
these
would
be
guar¬
Building
Trust
SPECIALISTS
NEW YORK 4, N. Y.
TELETYPE NY 1-971
LERNER & CO.
Investment
10 Post Office
by FHA, the Adminis¬
tration
does
not
conceal
its
anteed
Worcester
i
sum,
quired.
While
I Carl Marks & Co Inc.
Presilentd in¬
nominal
Street Company
Warwick Company
may some
ment
Beacon
Securities
Square, Boston
Telephone
HUbbard 2-1990
9, Mass*
Teletype
BS 69
^
@FedFRASER