Full text of Commercial and Financial Chronicle : February 5, 1953, Vol. 177, No. 5192

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ESTABLISHED 1S39
UNIVERSITY
OF MICHIGAN

Reg. U. S. Pat. Office

Volume

177

Number 5192

New York

7, N. Y., Thursday, February 5, 1953

Price 40 Cents

Copy

a

EDITQRIAL

Business in 1953

We It
See

As.
It would be

no

exaggeration to

stale of the Union Message

that the
eyes of the world have been fixed upon the city
pf Washington during the past week or two with
pn intentness seldom surpassed.
The fact that
the President has "spelled out" his ideas about
foreign policy in considerable degree will not re¬
duce

the interest

now

so

manifest

hew Administration is

planning

for

say

in what

here

at

As

"our country has
come
through a painful period of trial and dis¬
illusionment since the victory of 1945," to quote
the President.

shield
.■

a

"We

The

country¬

Dwight D. Eisenhower

-

<

/

;

on

Feb.

2 delivered

clear lesson.

definition of

a

of the 83rd

we have learned
We have learned that the free

new,

i

message

follows:

•

Mr. President, Mr. Speaker, Members

.

of this Administration

bility
The

page

26

that

Continued

SECURITIES NOW IN REGISTRATION
are

afforded

—

Municipal

Securities

Underwriters,

STATE

Pacific Coast &

matter what I say next year,

page

Marcus Nadler

The past year was a good one, but

of the

32

I

can say,

while the over-all

operating at high gear, not all the segments

economy

enjoyed the

degree of prosperity.

same

Continued,

on page

22

by Professor Nadler before 15th Annual Arthur M. Reis
New York City, Jan. 14, 1953.

talk

Forum,

AND

MUNICIPAL

investors in

cor¬

OIL & MINING

SECURITIES

:

Municipal

.

Bonds

I

BONDS
Direct Private Wires

Dean Witter

Coast to Coast

Co.

&

Members of

THE NATIONAL CITY BANK

Los Angeles

•

Boston

•

•

Chicago

Honolulu

ESTABLISHED

1915

50 BROADWAY • NEW

OF NEW YORK

and Security Exchanges
San Francisco

Dept. Teletype: NY 1-708

-

Angeles
and

10 other

Exchanges

CHASE

THE

YORK CITY

Denver
Spokane

Salt Lake City
Los

Bond

Bond Department

J. A. HOGLE & CO.
Members of All Principal

Principal Commodity

BANK

NATIONAL

OF THE CRY OF NEW YORK

Western Cities

Industrial Acceptance

STOCK and BOND

ESTABLISHED

BROKERAGE SERVICE

Corporation, Ltd.

T. L. WATSON & CO.

Members

New

American

Prairie Oil

1832

Stock Exchange

Banks, Brokers and Dealers

Net

Hardy & Co.
Members New
Members

York Stock Exchange

American

Stock

New York 4, N. Y.

Telephone WHitehall 4-6500
Teletype

New

To

<8>
50 Broadway,

NY 1-1843

BONDS & STOCKS

York

Markets

Power Co.
COMMON

Maintained

Analysis

Dealers, Brokers and Banks

CANADIAN

DEPARTMENT

Goodbody

&

Co.

ESTABLISHED 1891

Pomdooh Securities
Grporatio?!

New York 4
BRIDGEPORT

Tele. NY 1-733




PERTH AMBOY

1t5 BROADWAY
NEW YORK

1

40 Exchange Place, New York 5, N.Y<

and

CHICAGO

Teletype NY 1-702-3

WHitehall 4-8161

request

York Stock Exchange
Principal Exchanges

New

other

111 Broadway, N. Y. 6
WOrth 4-6000

NORTH LA BALLE ST.

upon

ira haupt & co.
Members

Exchange
MEMBERS NEW YORK STOCK EXCH.

30 Broad St.
Te!.DI*bv4--«nn

Central Maine

Corporation, Ltd.

Commodity Exchange, Inc.

for

CANADIAN

Royalty

Traders Finance

York Stock Exchange

'

(
"Didn't

■

so?"

economy was

Wires

14 Wall Street, New York, N. Y.

BOND DEPARTMENT

on

dealers and

Chemical

30 BROAD ST., N. Y.

no

I tell you

WESTERN

Direct Private

COMPANY

"And

State and

Hawaiian Securities

BANK & TRUST

economist

complete picture of issues pow registered with the SEC
and potential undertakings in our "Securities in
Registration" Section, starting on page 38.

HAnoveT 2-3700

telephone:

an

his face said,

on

a

U. S. Government,

State: and

grin

well

As in the past years I will try
again to bring to you more chaos so'

Eisenhower

*A

porate securities

DEALERS

Pres.

tegrity and such efficiency that its honor at home will
respect abroad;
Encouragement of those incentives that inspire creative
initiative in our economy, so that its
productivity may
fortify freedom everywhere; and,
Dedication to the well-being of all our citizens and to

think, that he is well
on

a

was

business adviser and

who created chaos?"

national administration of such in¬

a

was a

ensure

fully satisfied with

Continued

with

in

foresight that it will deter ag¬
gression and eventually secure peace;

j

.

,

created."

was

economist, who

had all the attributes of

world affairs with such fortitude and

Europe, and there will

:

influence

such

Establishment of

the

traveled,

our

-

'

before Adam

And

v

of

^

-

...

,

...

*

I "•
'
Usually this time of;the year I buy a new crystal ball,
look into it carefully and try to tell you what the next
year will bring.
You know the story of the three pro¬
fessional men who were rivaling one with another as to
which is the oldest profession.
The
surgeon said, "Surgery is the oldest
profession because the good book
says, 'And the Lord created Eve by
taking a rib out of Adam.' That is
a surgeon."
•
: '
The engineer said, "No, engineer¬
ing is the oldest profession, because
the good book says, 'The Lord cre¬
ated the world out of chaos,' and that
••

came

grand,labors qf this leadership

Application

Much of this formulation

we

justify the

will involve:

will have to be made more concrete and specific
implementation proposed before final appraisal
will be possible.
It is, however, plain enough

general agreement,

to

to

American .people.

foreign
policy thartras^ been formulated by the Eisen¬

the situation in Western

v-

governmental responsi¬
issued last November by the

summons

There follows the broad outlines of the

that the President is far from

:

appearing
before you to deliver my first mes¬
sage to the Congress. ; '
;
It is manifestly the joint purpose
of the Congressional leadership and

has, therefore, begun the
positive foreign policy."
'

hower Administration.

Congress;.

I welcome the honor of

"This Administration

be

,A

official text of the President's

foreign peoples alike, the Chief Execu¬

world cannot indefinitely remain in a posture of
paralyzed tension, leaving forever to the aggressor
the choice of time and place and means to cause
greatest hurt to us at least cost to himself.
:

self-help from

policies, both domestic and foreign,'which the Adminis¬
tration proposes to follow under its new leadership.

"From this costly experience

one

more

'

and

tive adds:

j

Wants

in person his first State of the Union message to
Congress
in an hour long address replete with statements of new

world of turmoil."

Then for the edification of his fellow
men

China.

Europe..,'-.:

President

anticipated a world of peace
and cooperation. The calculated pressures of ag¬
gressive communism have forced us, instead, to
live in

Communist

"J

Finance, New York University

Analyzing likelihood of continuation of forces which
made 1952 great boom year, Dr. Nadler predicts in 1953
military expenditures will remain at high level, capital
expenditures will remain large, and business will be gen¬
erally good. Nevertheless notes certain incipient weak¬
nesses,! as failing commodity prices, heavy increases in
private debt, and increasingly competitive market. Coneludes boom conditions will last at least through first half
of» 1953, that they would be cut short by ending of Ko¬
rean war, but in any event there is no
prospect of a dras1.
tic depression.

dling of inflation and work toward earliest possible solu¬
tion of tax burden. .Proposes changes in taxes and other
measures"to encourage initiative of our citizens," and
says price and wage controls will go.
Disavows "secret
understandings of the past, which may have broken faith
with our friends," and reveals U. S. fleet will no longer

the

thinking.

By DR. MARCUS NADLER*

.

Professor of

President tells Congress aim will be to balance budget,
while meeting huge defense costs., Calls for proper han¬

home,

ourselves

or

1

Boston

Teletype NY 1-2708

Telephone: Enterprise 1820

The Commercial and Financial Chronicle

(578)

2

t;i

The

i'J

.V

,

POSITION and

WE

TRADE. IN )

Security I Like Best

Utility

*

are not intended to he, nor
offer to sell the securities discussed.)

(The articles contained in this forum

they to be regarded,

are

Copeland Refrigeration

as an

just around the corner.

& Co.,

General Partner, Walston

Natural Gas & Oil

Caribbean

Coastal

Schering Corporation

is

ida

in

the

Oils, Inc.

minutes we

Southern Production

going

are

Taylor Oil & Gas

ous

Western Natural Gas

state.

The

from

have

have

of feverish

shows

120

Span¬

Members

120

BROADWAY,
Tel.

REctor

continues

5

2-7815

Alabama-Tennessee

with

and

that

$64

Do

question.

top students of

some

Gas Co.
Dan River Mills

Co.

substantial

are

They argue that oil

oil producers.

has been found in bonanza quan¬
tities all around the borders of the

Gulf

I Mason, Inc.
Lynchburg, Va.

Mexico

of

been

tion has

LD 33

out.

^IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIUIVflilKltlll J

its

where

explora¬

thoroughly carried

Why shouldn't Florida have

The states of
Texas and Louisiana, on the Gulf,
possess enormous wealth in "black
oil

pools

too?

gold.'; In fact

some

of the most

TRADING MARKETS
'
u

*

'

'

& Paper

the

of

Grinnell Corp.

Gulf, entirely surrounded
many
miles offshore

Water,

by

Texas

from

Kalamazoo

find oil in the
state of Mississippi, too. And, durwe

ing 1951, the hopes of Florida res-

Parchment

idents

Keyes Fibre Co.

an

known

the

Humble

oilfield

new

Pollard

Alabama, just

of the

north

field

in

four miles

Florida border. This

discovery

produced

has

scramble to lease available

age

adjoins

after another has jumped

into

this

At

of these
encouraging

least

either

some

rather

had

of oil and

known

and

new

signed
in

Units

Lehigh & New England 3s 1975
Phila. Transportation

over

have

have

charted

three

drilling projects

on, or near, company

Gulf Oil

11,500-foot test

of

sumes a

50% undivided interest in

this acreage. This project

will be

there

is

much

a

Samuel K. Phillips & Co.
Members

Phila.-Balt.

Stock Exchange

Pennsylvania Bldg., Philadelphia
Teletype
PH 375

N. Y. Phone
COrtlandt 7-6814




state

Southwestern Public
Service
Rights

&

Common

Gerstex & Frenkel
Members

150

N.

Y.

Security

Broadway

Dealers Ann.

Now York 7

|

Tel. DIgby 9-1550

Tel. NY 1-1932

puz-

tesfj a known geological structure

COMPANY

even

of Florida's
zling geology than there was

and was recognized as one of the
best prospects in the state. The

Recapitalization Plan

few years ago.

a

company--'objective was to test the Sunni'seems
have more terri- Lmd Limestone at about 10,200 to
under iease jn Florida than 10,500 feet. However, this goal was
0ther oil company has. It is never achieved. At 6,702 feet the

Now

any

BALTIMORE TRANSIT

end of Key Largo was designed to

thorough

more

caiied
It

a

the

Coastal Caribbean Oils

Project came

Inc

"Spjn_0ff" from the old Panoil

coastai

The

Co.

Caribbean

with

5 760 003

about

end

abrupt

an

°R show was reported, however,
More recent seismic surveys have

Coastal

new

to

with a twist-off followed by an
unsuccessful fishing job. A good

born just a few days ago>

was

as

to

turn

we

it's

indicated that this first well was
off-structure by several miles.

shares outstanding, made
debut
in the American Stock'Exchange

Memo

Request

on

J. V. MANGANARO CO.
50

Broad Street

4, N.? Y.

New York

Telephone
HA 2-3878

9

Teletype
NY 1-2976

80

been

all

most

underwater

consist,- in 4he
offshore areas

bays,

too.

main

are

all

too,

in the

the

inlets,

ye?,

but

river

0f these locations
be jn Franklin

bot-

County

on

reported to

are

County and in Lee

the

of

coast

west

in

4,0C0,000

just

the Everglades

°

the

distance

strip

wide which
West

of

runs

coast

for

than

more

mighty, long

a

and

up

gas

shows

feet

but

9,388-11,150

between

the

in

zones

the

which

a

tptab shows were recorded ? had poor"
miles.porosity and for that reason could
piece of•not be commercially produced. -v1

400

Other

is south of Ft. Myers.

unsuccessful tests put
included
one deep well in Pinellas County
and four others of moderate depth,
with one each in Levy, Jefferson
Lafayette and Monroe Counties.
One of these,

achicola Bay in Gulf and Franklin
Counties of northwest Florida

the way down to
of the
ern

the

of

map,

Humble

Keys.

Lake

six miles south

state.

Naples,,

w

and

.

west

of

derwater

acres

leased

Palm

down a

few Years. aS°

a

Beach.

from

r
the

None

of

clusive,

acres

in

this

same

was put down

these projects

however.

leases,
into

as

is

the

are

now

leases. This

,i

•

;

Gordon Graves & Co.
30

Broad

Street, New: York 4

I.... Telephone

:

WHitehall 3-28*0

s1
'

' C

Teletype
NY

410 Pan American Bank

■,

1-809

Bldg. !

Miami 32, Florida

or

major companies

so

"T

N. Q. B.

was, con¬

its

In

v=s; crakai
works with
one

promising basin, and

173,000 other

request

7,559-foot test in

*outh- Monroe County,

in

This lake is about

miles

state in this

on

.

Okeechobee

central^lodda
40

all

city of Naples at the south-,

end

your

on

of

"

10 miles

Prospectus

bf

west

these Miami. Known as the No. 1 State|?e?,lie aloyi? thJ; west coastal Grossman, it penetrated to a
Fl?n<^ on the Gulf of Mexico depth of 11,520 feet and did en1 continuous water-bottom
;couht?r many eneouraging^lL and-;
a

Thais

Bought—Sold—Quoted

drUled a wil(Jcat in Dade County

'

(1) ^bout

Company

Common Stock

Florida.

holdings is shown

betow

down

„

"f does^avrtwrtremen- st3edYoorgBadcek hffgTg 'co'Sta!
°holdingsryis Ashown

way

two of the big hold¬

Oil

various Coastal holdings, and two

beaches,
to 10 miles out,

up

harbors,

They

of

toms and lake beds. The company

big

on

Commonwealth

ary
of the old PancoastaL The
Some of the major oil compa5,000,000 acres are entirely "wild-1 nies such as Gulf and Humble
cat," are almost all leased from are; also planning several wildcat,
the State of Florida, and are al¬ wells
just a few miles away from

drilling

aw
more

=
of the

that they

can

of others. Continental
comer

offices

Common

Old

on

a long list
share a
substantial part of the
lease block.
Rather high
hopes
Oil, a new¬
expenses.
"
are held for this lake
property.
picture,
So far, then, Coastal Caribbean
(3) Immediately adjoining Lake
has taken on over 1,000,000 acres
has no commercial production. But
in the southern part of the state, Okeechobee on the south is a 90,block leased
from
the ib does
have sucn an immense
south and east of Tampa. It is 000-acre
estimated that 75% of the entire U. S. Sugar Corporation.
; territory under lease that" it does
ers

branch

our

Missouri Pacific R. R.

to

magnetometer watched with great interest by the

of

means

1,000,000 acres

leasing boom is

Florida

the

'

well

of Florida

rest

Phila. & Trenton RR. Stock

on

leases

northern Florida.

The

to

Foote Mineral

area,

expected

are

gas,

Oil

Gulf

as

by

land

Alabama-Florida

play

Pocono Hotels Units

aere-

northern Florida, which
Alabama. One major; oil

in

company

A. M. Greenfield 5s 1954

wires

off the

' a

i.

a

Philadelphia 3, Pa.

2039

Oil-

Humble

important

as

southern

BOENNING & CO.

when

soared

struck

3-6's

Mov-

Louisiana.

and

ing eastward,

Vegetable

Leeds & Lippincott

and

state,

pan
'

'

Mobile, Ala.
Direct

sizable

Mexico and which

Scott, Horner &.

NY 1-1 a 57

Orleans, La.- Birmingham, Ala.

survey

Sin- tory

as

gas

in

leum

Commonwealth Natural

Southern Advance Rag

parts

just
is

this week and traded at above
Coastal's
promising
Lake
quantities there $4 a share. Coastal Caribbean has .Okeechobee-U. S. Sugar leases
are
most encouraging. They be¬
just taken ovei a total of about may-be drilled this year too with
lieve that the geology in many
5,000,COO acres of leases in Florida, a deep test of at least 11,000 feet.
sections of Florida is as favorable These leases were
formerly held During 1952, a refraction seismoas
it is in other Southern states for a
period of several years by graph crew spent several months
which
border
on
the
Gulf
of Coastal Petroleum
Co., a subsidi- of work there,

Natural Gas Co,

Tele. LY 62

various

in

drilled

petroliferous

of

number

a

and

Miami

mainland,

from airplanes. In the fu- oil industry because it is only a
ture, it will be possible to erect few miles north of Coastal's No.
the drilling derricks on the most 1 H. R. Williams, drilled in 1949.
promising locations. In addition, This original well at the north

deposits who think
the chances of finding petro¬

oil

Moore Handley Hardware

Ida

large deposits of oil and gas exist
under the soil of Florida? I have
talked

Trading Markets

the

for

Now

ftuillllllllllllllllfllllllllllllllllllllllll?'

been

to understanding

expand

to

by such majors

financed

YORK

NEW

Even in this year

clair, Continental, Magnolia, Texas
Company, Gulf, Humble, Sun and
the California Company

Stock Exchange

of

south

the sub-surface structures of Flor-

underground structure to be found.
there. This intense activity is being

York Stock Exchange

Key

New

down

Key Largo
ploratory tests were drilled, vital 40 miles south of Miami. This
new techniques have been develwildcat is adjacent to Coastal's
oped to make oil drilling much state lease No. 364, which consists
more
of
a
scientific procedure, of one block of 122,000 acres in
For example, some of the majors the Key Largo area. Sinclair as-

peaks. There are 17 geophysicrews
at work mapping the

cal

the

such

1953, Florida is still a virgin state
as
far as oil exploration is concerned. It has vast areas which
have never been touched by the
oil drill. Nevertheless, exploration

McDonnell & To.
American

Grimm

Eldon

for
gold,"

activity

New

the

for oil and gas.

new

limestone

Plantation Key

and

an

"black

Since 1917

famous

However, since most of these ex-

is

quest

Rights & Scrip

tide-

acies

about

for

galleons.
today the

But

Specialists in

of

from

sunken

ish

of

245,000
and

despite the
absence of commercial production,

and

loot

Teletype NY 1-583

BArclay 7-5660

in

lands

state

pirate

buried

gold

about

are

brought

was

from the

leases
begin over the
next few months. In fact, just last
week Sinclair Oil started to drill

searches

Broadway, New York 5

state

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

leased

Also

Florida

been the scene

Exchange

(5)

producing

largest

Sunniland

the

Corporation
Stock

of

acres

leases.

zone.

me

New York Hanseatic

Associate Member

more

Exchange

in the Keys. This historical area,

wildcats

American

90,000

are

Largo

glades and
oranges
has

1920

Stock

Stock Exchange

HAnover 2-0700

Sunniland

There

Established

York

New

Members American

of

&Co!

Steiner,Rouse
Members

in back in 1948 with a 760 barrel-

Ever-

of

state

Higginson

Lee

per-day output of 25 gravity crude

tropical
In past

centuries

Director,

Corp., New York City. (Page 16)

Collier

in

well

in

Bought—Sold—Quoted

Vice-President

Field

southwest

County.

gest treasure hunt in the history
of that fabul¬

Louisiana Securities

Mills—Schuyler

Vechten,

and

part of the state,

35 ™hes
Okeechobee

Lake

the big¬

on

southern

located

best map of Florin
the
next
few

because

—

Sunniland

Oil's

Humble

Get out your

Smelters Development

Van

Florida

„

Members New York Stock Exchange

Puget Sound Power & Light

is

does have one oilfield
of moderate significance, and this

New York City

—

,

City. (Page 2)

campaign

drilling

stepped-up

ELDON A. GRIMM

Inc.

Oils,

Grimm, General Part¬
Walston & Co., New York

River Brand Rice

East Tennessee Natural Gas

Alabama &

1

Eldon A.
ner,

Colorado Interstate Gas

Caribbean

Coastal

participate and give their reasons for favoring a particular security.

Thursday, February 5, 1953

Participants and

Their Selections

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

.

.

This Week's

Forum

A continuous forum in which, each
in the investment

Central Public

^

•

.

OVER-THE-COUNTER
INDUSTRIAL STOCK INDEX
12-Year Performance of

35 Industrial Stocks

Florida

under

means

oil

that

and
a

gas

snarply

(4) In the Everglades section*
about 25 miles southwest of Miami

kave nigh

of hitting someContinued

on

page

16

FOLDER

ON

REQUEST

National Quotation Bureau
46 Front Street

-

NewYerk4,N.Y.

Volume 177

Number 5192

.

.

The Commercial and Financial Chronicle

.

-r

(579)'

The Bank Credit Outlook

I ND E X

Vice-President, Bankers Trust Company, New York

|'

Business in

management policy,
according to Mr. Taylor is in state of flux, and therefore makes

!'t

■

slackened.

has

Predicts

Treasury refunding will

•'

1

/,

Page

1953—Marcus Nadler___

'*

forecasting difficult, he ventures view there*!! be an increase
in bank loans for tenth successive year. Points out, however,
growth in business loans will depend on changes in price levels,
and, if these are steady, loans of this character will also be
Steady. Says liquid condition of business has improved, and
liquidation of government securities by institutional investors

I

i

Articles and News

u

.

Although both credit policy,] and debt

I<

'

*

The Bank Credit
Outlook—William T.

f

'

BETTER

Taylor—

3

._

In

.

*

*

*

Swords and Plowshares—Ira U.
Cobleigh

■4

>

L__

a sales
which is

company

Government's Role in Preventing
Depression

v

/

—Edwin

G.

Nourse

No.

_i_______

6

not disturb

*.—Roy A. Foulke

The

economist

able

very

my

that

guess

will

1953

Factors Promoting

Basic Changes in Our
Economy—Gen. R

cent

months,

his 'another

and

increase

mortgage

debt

this
in

this

'

Con-

the

1953

—Frederick G. Shull

same

in

as

in

is
William

V

T.

*

Taylor

3i0n.

will

is

J

p

in 1952

creases

Proposals for Stimulating N. Y. S. E. Trading—.

when ^bankers

were

Mortgage and Consumer Debts Seen Not Burdensome-

,

,

I propose

...

.

dshk

business loans

Business

61

Approaching

Broadway, New York 6

BO 9-5133

Normalcy

whereas "in

t

in

the time

years>

this morning. I un-

me

this

not

assignment

*

be-

ir

&ecord Mutual Savings Bank Deposits in 1952—
•'.if.-,.

*

1952 : thev

declined

_i_

28

Philadelphia

:

•

Criticizes UN's Action

Nationalization—.

on

was

about equal: '

careful

a

student

Air America

•

As We

second half of both

the growth

Doubtless

.

See It

(Editorial)_______J,4___-__i:____-____^j_Cover

J
Bank and Insurance Stocks— _____Li_
.

of :

*'

1

Business Man's

;

Associated Development

27

"

f

come

Bookshelf___

i__

c_

and Research

•

*

1

_____

*

A

</

.

•.

,

Brown Allen Chemical

,

34

t

•

.
,

_____

attempt this task. In addiuncertainties and difof

tories.

opinion

that

upon-

custom-

the outlook for
business,activity and prices, both
credit policy and debt management policy are in a state of flux.
increases

in

•

ex-

but

un-

risks

the

,

■■

fnr
Outlook foi T nuim
Loans

rtuflnnk

,

*

Every

major

category

loans, except loans
showed

an

iwere

of
at

increase

all

new

bank

securities,

in

1952; and
the total

by the end of the year,
Joans

of

on

commercial

banks

record levels.

ing that total bank loans have

National

in-

by Mr. Taylor before the

Credit

Conference

of

business

and

inventories

being

were

•Indications of Current Business Activity

•

restocked

the Amer-

showed

a

decline;

With

the

Reporter's

Our
•'

staged

inflation,

business loans
another sharp rally.1

Reporter

11

Public

The outlook for business loans,
therefore, is tied in very closely

•

with

our

expectations

as

to

busi-

activity
and
commodity
prices.
If. on top of the current

high

levels of business activity,
experience a resurgence of in-

we

our

business customers will seek additional bank credit in order to help.

carry

larger inventories - and

Ceivables.

re--

However, I doubt that

r

;

'

ndaeuitopC

,

—

Members New York

ST., NEW YORK

—

-

r-

Private Wire to




Chicago

•

4, N. Y.

i

40

Exchange PI., N. Y. 5
1-1826

•

Offerings

/

40

Securities.—

_j_„

/

Salesman's

Corner

-

•

Glens Falls

•

Schenectady

•

Worcester

CALIFORNIA

28
29

.

29

z

2

Common Stock

A

Tomorrow's Markets

(Walter Whyte Says)—

closed-end,

Published

The

You'

Twice

—____

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

Weekly

and

COMMERCIAL

B.

DANA

COMPANY, Publishers

REctor 2-9570- to

WILLIAM

&

value
E.

C.,

plete

,,,

<

DANA SEIBERT, President

Owner

as

Subscription

Subscriptions

in

records,
state

isaue)

corporation

and

Other

Chicago

issue

city

news,

Offices:

3,

111.

135

—

market

news,

bank

quotation

clearings,

etc.).

States,

U.

S.
of

Territories

Countries, $52.00
Other

Bank
$30.00

La

STate

Salle

St.,

2-0613);

and

per

and

rate of

per

of

stock.

■

7,506,866

-shares
common

Report Available.

in

year.

Publications

Est.
"

<

Record
Monthly,
(Foreign postage extra.)

account

of

EISELE & KING,

LIBAIRE, STOUT & CO.

year.

Quotation

year.

Note—On
the

South

(Telephone

the

Rates

United

Members
Pan-American. Union, $45.00
per year;
Dominion
of- Canada,
$48.00

PossessionSi

Other

(general'news and ad¬
and every Monday (com¬

statistical

during

RESORT AIRLINES

second-class matter Febru¬
ary 25, 1942, at the post office at -New
York, N. Y., under the Act of March
8,

Thursday

vertising

share

per

a

asset

past 9 years.

>

,

,

D

Publisher

Thursday, February 5, 1953
Every

Eng¬

with

1500% gain in

1679.

9576

I). SEIBERT, Editor

record of

Reentered

!

Patent Office

Park Place, New York 7, N. Y.

•

44

company

Copyright 1953 by William B. Dana
Company

FINANCIAL CHRONICLE
U. S.

non-diversified

29
investment

Washington and

@ 6%

5

i__

,

FIDUCIARY
MANAGEMENT, Inc.

38

Security I Like Best..

The State of Trade and Industry

TELETYPE N. Y. 1-5

CROW ELL, WEEDON & CO.

LOS ANGELES,

HA 2-0270

25

.

••

per

•

Nashville

•

4

__________

Securities Now in Registration.—
The

HERBERT

Stock Exchange

TELEPHONE HAnover 2-4300

•

5

__

Securities

Securities

25
"»

Security

Utility

Railroad

ness

Spencer Trask & Co*
Manchester, N. H.

Light

Singer, Bean
& MACKIE, Inc.

.

24

—

Governments-

on

-

Reg.

Boston

Noma

30

L___

Report.

•»

Prospective

WILLIAM

•

U. S. Airlines

•

16

.

ensuing

have specialized in

Albany

20

Teletype NY 1-1825 & NY
Our

out-

For many years we

BROAD

Delhi Oil

•

Observations—A. Wilfred May_^

break of the Korean war and the

■%Z^t£rUtUM'.CUan

25

8

35

News About Banks and Bankers..—

commodity prices were rising
rabidly, When business, activity;"
eased and prices softened beginning in late 1948^ business, loans

flationary pressures, doubtless

\J It-is interesting to note in passaddress

of

Cinerama, Inc.

and

fortunately does not free us from,
the
necessity
of
having
some :
opinions, albeit tentative, about
the outlook.
Of course, we must
also assume no change in the ternperature of the so-called cold war/
'

latter ip turn depend

state

*

upon the course of and outlook,<
for commodity prices. :;Thus, rapid % -Mutual Funds
increases
in
business loanss' oc- « **NSTA Notes _________u____:
curred from 1946 to 1948 when

arily- surround

pressing points of view,

The

the

5

»•

,

tion to the

Corp.

44

me

.

-

Los Angeles

San„ Francisco

28

Up
wfth a very technical and/
to .come out iiearned treatise on the
many and ': ^Canadian Securities
with the rjght answer, but m the
complex factors that'underlie the); w
< • >■
thought that a discussion oL the f behavior of these loans:
Looking-f- Coming Events in Investment Fields
major factors .that
will
^affect,
record of the post war years
bankipg in- 1953 will be of some i have been impressed by one fair-' Dealer-Broker Investment Recommendations—-•'* !'
' *' *■'
'
assistance in1 clarifying points of •
jy sjmpie fact; - namely, the close Einzig—"British Crusade Against High Taxes"-——
view and formulating opinions.
•similarity in the' movements of
X
This is not a particularly easy business loans and business inven-v ;.Fiom Washington Ahead of the
News—Carlisle Bargeron—
time to

This

Wires
*■

Regular Features

**

in^ SeSftJ

the subject would be able to

I possess any secret formula

\that will enable

ferences

Teletype NY 1-3370

20

Direct

rose

to venture some observa- months. In the

allotted to

cause

Reilly&Co.

,,

losns, invest-

these matters

dertake

14

at

busi
business loan performance in 1951
an(j
1952.
You
will recall that

ments, deposits and interest rates,
on

J.F.

Incorporated

larger than

business

get

request

on

9

—13

„_

Prospectus

_

th© outlook, tor

tions

19

—

Stability in Long-Term Interest Rates Forecast—

sharply in the
together to talk shop, sooner of
edrly months of 1951, as a result of r
later they get around to discussing
'the
inflation
then' under
way, '
-

Haile Mines
._____

*

Eisenhower Delivers His First State of the Union
Message_.Cover

jn

.

that

#

"

interesting—and

more

In most types of loans, the in-

Although

(. My experience over, the years
indicates

Gulf Sulphur*

.

18

broad general conclu-

a

The

back

•

17

___i„_.

American

Industries

Knowledge of Free Enterprise

*

1951; the key exception was in
loans, which increased
hope you will excuse my temerity
onjy about half as much last year
in making some guesses about the
as
jn
2951.
Let's look
.

Great

_j

business.

equivalent umbrella for myself,

.

Cinerama, Inc.

15

Widening Markets for Mutual Funds—Nathan Belfer

when

have been unable to dream

future.

14

continue

satis-

most

tempting to prophesy.

probability

perhaps the/ most important
problem revolves around loans to

oneAulS

,

all

That

a

clause

fying

•

___/

—Roscoe C. Ingalis

;

their active participation,

are up or

down." Such

hedge

White——!

E. Wood

lending fields, commercial banks

1952, unless
they

'Our Inadequate

increase for the year. In both these

about

in

be

12

The New Administration Can
Restore Gold Standard—

estate

year.

the
following sumer credit may not continue to
earth-shaking rise at the rapid rates of recent
observation, months, but is likely to show an
will

Industry Has Its Neck Out—C. M.

presages

real

YORK

4-6551

11

Prosperity—Arno H. Johnson—

have been holding up well in re-

with

NEW

mark
The Steel

and

g r a m

remarks

"Sales

Boom!—Roger W. Babsori

the 10th successive year of growth
in total barik loans. Building starts

started

WALL STREET,

-Telephone: WHitehall

was

the

Bids!

Obsolete Securities Dept.
69

10

„„_

pro-

..xompapy
on

is

the

of

Better

,

Business Is Good, but Competition .Will
Squeeze Profits
1

creased in each of the past nine
years—from 1944 through 1952. It

of the leaders in its industry,

one

TRAP?

4

.

•

market.

money

December, I attended
a

MOUSE

'

Another Florida Land
convention of

AND COMPANY

Cover

*

,

LlCHTEnSTEin

B. S.

By WILLIAM T. TAYLOR*

Members

of

New

1808

York

Stock

Exchange

—

the

fluctuations

in

exchange, remittances for for-

eign subscriptions and advertisements must
be made in New York funds.

3

50 Broadway, New

York 4

Tel. HAnover 2-6577

The Commercial and Financial Chronicle

4

..

Thursday, February 5, 1953

.

(580)

cal

Swords and Plowshares

valued

ones

By IRA U. COBLEIGII

expansion

It is

the

continuing unto this day,

volatility of the
steel industry (and of its common
stocks) that of the 50 equities most
on

cyclical

wi ciely

held in

and

capacity

of

allured and assured new

investment

millions

trust

only

two steel com¬

and

Bethlehem. Of

all

major

our

ind

be

sales at

str ies,

u

steel

seems

of

one

U. Cobleigb

of

to

the

a

swing-

the

current

the

peace,

prophet

into

that

the

indeed

nated.

right now we
plowshares;
industry would be
For

not

steel

operating dismally were it
this

supported

the $55

tion

both

year

by

billion armaments expen¬

diture and

6,000,000 unit produc¬

a

for

program

tractors

and

trucks,

cars,

trailers.

Steel Capacity Enlarged
It

the

making it—and paying divi¬

was

dends.

each

has
and

paid some dividend in

Starting out with the ores which
it

Hanna Iron

its

from

gets

Ore

Mines

Corp., and river barges to
deliver the ebony element from
the shafts and pits of Pennsyl¬

coin,

that

say

some

enforced idle¬

labor

would

Further, if,

as

to

new

tapered

off

blasting
of output

after

prodigies

War

since

demands

for

nothing,

have

would

II

1946—but

no.

up

buildings,

cars,"

bridges, oil wells, homes and ap¬
pliances sustained virtual 100%
operation till into' 1949,
slackened

production

a

dip

when the

bit; and

might

real

a

have

oc¬

curred in 1950 but for the Korean

be

distinguished Navy Admiral,

a

Moreell.

Ben

Twenty-three per¬
of output here (1951) goes to

motor

steel

taconite

did

and

it

ore

in Minnesota, Repub¬

lic deserves serious consideration.

term

strip and sheet

shipments and

tubular

20%

plant improvement is highly
evident with $190 million laid out

war

for

this

period.
was

in

purpose

Best

1950

the

for the

year

when $7.36

1946-50

GEORGE V. HUNT

is

there

finances

of

indebtedness

long-

$171.2 mil¬

the

Armco

Jones

After

tivity

Wall

several

that

&

competitive.

more

ings again

may

Laughlin

the

shelves

the

position

good

man-kized
As

utility

they really

are,

of accelerated

Republic
U.

S.

.

Steel

_

_

Youngstown

_

__

We

Bankers

away.

If however, you assume a

ful

attitude and

are

at

the

free

the

market.

bonds

basis

went

for

are

--

Broadway

•

steel

shares

Vice

•

CO.

watch¬

•

BALTIMORE

Representatives' Offices: GINEVA

February 1,1953




'i'.m i

;

Order

18.

The bulk of such projects range
size

from

$12,000,000

$25,-

—

on

to

bit

handle.

larger,

There

two

are

a

Consolidated

namely

Edison Co.'s $40,000,000 of 30-year

a

first

and

refunding

mortgage

bonds, and $30,000,000 of 20-year
first mortgage
which
Current
Price

Dividend

to

000,000 which, speaking generally,

and is the type of undertaking bankers

Yield

$4.00

56%
42

7.1

1.80

23%

7.7

4.10

3.00

50

6.0

4.00

48

8.4

4.45

3.00

423/4

7.0

5.70

.3.00

45%

Dealers

7.1%

3.00

pipe line bonds

Tennessee

Gas

on

Transmis¬

sion Co. will open bids on Monday.

About

6.50

6.6

keeping

are

their

fin¬

gers crossed and hoping that un¬
derwriters sponsoring the business
will take cognizance of the change
in the situation and

price this
accordingly.

material

new

Meeting the Issue

pleased to

State

MR^SsMANAKR

that

announce

looking for

real value?

;

leader lin

undisputed

experienced

a

most

a

management.

■

i

•

■

LONDON

HARTFORD

•

'

,

•

New York 6

BUFFALO

'

PHILADELPHIA

•

tke

$17.86

business

was

With

dividends.

ploughed

and $6.55

major

paid

capital

expenditures-completed this company is
in
a
position— to distribute > a much
-

greater, part,
have

$13.
CLEVELAND

•

—

hook

With

share of which $2£8®

a

of ^-which
into

in

We

65 Broadway,

•

vital

working capital. In the past ten years
this company earned a total of $23.68 a

Union Securities Corporation

655 Modison Ave.

■

.

v—•

is

Director

President and

share

BOSTON
WASHINGTON

to

debt
issues for more
$200,000,000 to and including

Feb.

Steels

1952

\

NEW YORK 4, N. Y.
•

of

Including
the
several
issues
reaching market this week, bank-'
will be called upon to handle

profitable basis!

general partner

499 Seventh Ave

yield

ers

value of $St.f7

(Dissolved)

;

-

loose,
101%-1013A

a

industry-—strong financial c-ondition

...

2291

Turned

to

indicated

an

Made

to plow part of your

i

•

not

was

■

good timing of purchase here, may like

into

yield

around 3.28%.

out

Broadway

to

attractive to buyers, moved quick-'
ly to let the issue find its level in

back

25 BROAD STREET

102.625

likely, in the near term, to reach,
a point that would make this basis

in

hoard

as

I

than

selection

judicious

you

the

issue

convinced that the market

by the siren call of existing high

yields,

.

1182

paid

the

3.24%, the bonds were slow in
moving out.
Bankers, evidently

not too lulled

has joined our organization as

formerly of

Members New York Slock Exchange and Other Exchanges

for

due to heavy bites corporate

MR. OLIVER M. WHIPPLE

.

&

looms

of California's $100,000,000 of new veterans' farm and
home loan bonds appeared tq be

.

H I R S C H

for tackling

which

job

102.08999

Reoffered

depreciation.

Mr. Albert de Jong

a

un¬

added lift, the roster

an

3%s.

The

as

underwriters

of

securities for industry

new

in

Arc you

firm

wel¬

a

appears

Firms that underwrite and dis¬
tribute

lower than

6.95

__

_

__

pleasure in announcing that

to our

as

cleared of remnants of recent

Further, earn¬

seem

2.80

_

_

__

;

has been admitted

comes

dertakings.

Street, New York 5

Albert de Jong & Co.

thin

of

and dealers have been pretty well

WHitehall 3-3077

We take

weeks

naturally

The

44

is¬

new

change. Moreover, it

come

earned.

6.00

___

National

Investment Securities

of

fare the prospective pickup in ac¬

mand, and trade pricing probably

ings About

Company—

TERRY & COMPANY

banking busi¬

volume

tempered by a possible fall in de¬

Table of Representative

Bethlehem
us

the

of

being groomed for market in
period.

sues

common

Nineteen

1952 Earn¬

associated with

cations

are

was

investment

judging from current indi¬

ness,

ahead.

permit

dollar mark in 1951.

pleasure in announcing that

now

36%

cars,

for the

cleared

About

is

&

elimi¬

billion

We take

trade is Jones

many

with great
Progressive
management
here
consistency;
and
not
till
the
spent $295 million in property im¬
Autumn of 1952 did this group
provement between 1946 and 1951,
come to life—just in time, actually,
and improved efficiency, thus cre¬
to propel the Dow-Jones barom¬
ated, is a powerful factor for im¬
eter into 23-year high ground. So
proved future earnings.
today, in addition to our pano¬
As to products, Republic makes
ramic appraisal of the steel trade
sheets, bars, pipes, tin plate and
itself, we must also ask ourselves
alloys; and in the finished goods
if steel
shares, in their recent
department offers culverts, win¬
move,
have not already dis¬
dows, kitchen cabinets and office
counted, quite amply, the statistidesks.
Gross
sales
passed
the

"orld

the

fifty-two was poor by
of new prospects contains a goodly
earlier
standards, but it v/ould
sprinkling of business to be done
a
steel floor, a Quonset Hut or appear that most of the pessimism
about last year's results has been through negotiated deals.
just plain pig iron, National has
With the dissolution of the syn¬
discounted in current price quo¬
got it.
dicate
which
brought out Ohio
tations.
6,200,654 shares of com¬
Capitalization is quite straight¬
Power Co.'s $22,000,000 of 30-year
mon here follow 293,568 shares of
away—$55 million in bonds, no
first mortgage bonds, the last of
$5 preferred and $149 million of
preferred and 7,348,000 shares of
bonds.
Jones & Laughlin is per¬ recent offerings which had been
common
(27% owned by M. A.
hanging over the market has been
haps a bit more marginal than
Hanna Co.) selling at $50 paying

During most of 1951 the steels did

industry,

in

Laughlin Steel Corp. chairmanned

cent

year.

every

February holds out real promise

Jones & Laughlin

Fourth

Na¬ by

1907

since

Steadily

tional

might have been thought that

First, all the unfilled and pent

pace

1932

steel

away

h

the

every

was

$3, and earning about $4.10. Stock others we've mentioned, but it
anal¬ was split 3-for-l in 1950. National does not appear over-inflated by
is about, as solid as they come in
ysts contend, the steel needs for
its present market valuation.
motor
cars
and
heavy industry steels. Earnings are down about
should
taper,
correspondingly $2 from 1951 but should improve
Profit-Potential Industry
lower prices for vital raw mate¬ in '53.
Obviously this has been a very
rials would offset, on the earnings
Republic Steel Corp.
capsuled account of steels but the
statement, reduced total sales.
Republic Steel Corporation is
overall pattern seems the same—
However these speculations into the third largest steel maker, be¬
the future may
turn out, steel ing capable of annual production wide cyclical swings, heavy plant
10 million tons.
Well
stocks will remain speculative, a of above
improvement in recent years,
fact amply vouchsafed by the high integrated, with extensive owned
soggy 1952 earnings due to a nasty
reserves of ore and coal, and 50%
yield and low price earnings ratios
and hopes for this year
interest in a company developing strike;
revealed
on
the attached table.
overtime

and
especially

seems

the

of

that the newer units would
then produce the required steel
at lower cost; and that high cost

need both swords and

and

There are many
it; and who feel that

ness;

plowshares,"

today.

doubt

efficient plants into

Testament
of beating

spoke

reference

useful

this exalted level

relegate some of the older and less

"guns or
economic

our

Old

Isaiah

"swords

losing money
doldrums, National

in

Report

other

While

company

slackening even by so little as

side

choice of goods either for war or
for

near

slopping-off of demand v/ould not
be too damaging; that it would

in war.
before we

phrase

symbolizing

occur¬

1950 when per share net
reached $10.53. If you're shopping

15% would push many

or

peace

Three thousand years

butter"

or

Reporter's

share for the past two years, with

120

of

productivity?

who

products seem
virtually
i n-

dispensable, in

Exchange.
quite liberal—$4 a

ring in

profitability.

ingot

got

are

Our

Stock

of our steel, the biggest
earnings margin
the biggest

vania, West Virginia and Ken¬
Then whether you seek
companies tucky.
e r s,
even dangerously near their break-even motor car bodies, sheet steel, tinthough
its points. Others, viewing the reverse plate by the electrolytic process,

widest

had

among

Y.

pro¬
division, from extensive beds in products; 14% bars, the balance
million Minnesota, Wisconsin and Mich¬ scattered among oil and gas needs,
tons per annum. This is a 33% in¬
igan, it owns a fleet of boats to machinery, transportation and ap¬
crease over 1946 and the big 1953
transport the ore to the mills. pliances.
Here again the pattern of post¬
question is, can we maintain steel Then for coal it owns National

capacity

duction

biggest

S.

U.

will

of this year

we've

that

show

panies appear
—the

the end

Thus

rated

not

steel

plant construction.

port¬

folios,

Ira

expan¬

production
have surged; and accelerated de¬
preciation allowances of over $100
sion

N.

companies, but it's well integrated,
and has a record replete with ex¬
for steels you'll certainly want to
cellent management and sustained consider
Republic.

and

point,

that

From

outbreak.

interesting commentary

an

is

interested and high-yielding equities
the market crucible.

in

5%

ducing roughly

some

on

the

on

Dividends

of its postwar
has tempered the steel industry, plus cur¬

program

comment

rent

left? Let's take a

National Steel Corporation, pro¬

quick look at how the virtual completion

A

More lion followed by $28.2 million of
$6 preferred (convertible into 2
look. common shares); and finally, 5,896,719 shares of common listed

favor.

National Steel Corp.

"Expanding Your Income*'

Author of

their

in

factors

particularly, are there any under¬

a

a

of earnings;

limited

V/M.4,

j

R0NEY

Member New

SYRACUSE

AMSTERDAM

supply available at

share.
&

COMPANY

York Stock Exchange

<

2 Rtthl

February 2, 1953

Building
Detroit 26, Michigan

t

r

hVsVnVAVaWiVsV

Volume 177

Number 5192

.

.

The Commercial and Financial Chronicie

.

(581)
getting a favorable reception judg¬
ing from reports.
Reoffering • of this issue wap
priced at levels to yield from 1.1$
for the shortest

2.52%

for the series

the

of

case

due

the

in

State

ma¬

Retail

of Trade

Food

was noted that the 2.52%
tax-exempt yield on the long ma¬
turity worked out as the equiv¬

5%

the

of

case

on

Trade

Industry

Price

Auto

and

By A. WILFRED MAY

Production

Index

Business Failures

INFLATION OR DEFLATION?

taxable bond in

a

ers.

A

The

Real

Whopper

industry's new
needs
naturally
are
in
keeping with its growth which has
been

little

short

of

&

oratories.

There have been
of

such

but these have been

with

for

to the public thr< igh
derwriting group.
go

Over

the

last

with
war

due in

steady

seven

its

bank

loans,

the

latter

1955, being provided out of

own

resources.

Club

to

Federal

their

at

the

Detroit
dinner at

•

:

;

;

of

:

Din¬

the Hotel Statler.

(Milwaukee, Wis.)
Bond

Club

Mid-

Winter party at the East Room of
the Hotel Schroeder.
Feb. 13-14, 1953

(Chicago, 111.)

Investment Bankers Association

1951

level.

higher than it

But

•

current

(Philadelphia, Pa.)
Traders

heavily "on

J

the

of Philadelphia
lin

at

the

skidded

-

relatively

s"~

;

below

quarter of 1952

when

financial

5.2%

in 1951.

In

it

1950

Despite

last

year's

7.3%.

was

about one-third of the steel

The corporation

relatively

showing,

poor

fairly favorable, it continues.

brought marked

scrapping of wage and price controls on the
although in the opinion of this writer, in a
As instanced even in the current decision made
few items are pressing upward against ceilings,

abandonment

of

improvement

during

Association,

the

The

the

earnings

fourth

Continued

factors

same

on

annual Mid-Win¬

rent

control.

The

State

,

of

There

Long-Term Elements

several long-term major inflating and
deflating elements still deeply imbedded in our economy. Labor
.

.

of

are,

course,

union

strength,

pushing upward

doubt

continue

strong

wages and prices, will no
Administration.
Inflationary
credit "mischief" still is potent. As a result of the Federal Reserve
Banks' long-time purchases of government bonds, our commercial
banking system has created and made available for circulation
nearly $70 billion of inflationary purchasing media.
The huge
amount of the public's idle or hoarded purchasing power, together
with the dollar-devaluation weapon-in-the-closet supply a major
force

for

in-flation,

under

at least

or

on

any

means

a

of early counter-attack

against unwelcome de-flation.
The most certain guarantor

of inflation-promotion is the pol¬
ensuing from unpop¬

itician's consciousness of ballot-box reprisal
ular

deflation, ensuring at least the calling-in of all available in¬

"trouble."

flationary resuscitation media at the first signs of serious

Continued

on

page

37

Benjamin Frank¬

fTntnl
WE

We

pleased to

are

announce

the opening'

of offices in the.

THE

ARE

PLEASED

ADMISSION

TO

TO

ANNOUNCE
PARTNERSHIP

GENERAL

OF

,'

Charles D. Halsey
GENESEE

BUILDING

AND

'

'

-

BUFFALO

2

-

■

Robert l.
for the purpose
v

,;

,

of serving investors

RESIDENT

IN

Raclin
CHICAGO

.

ln Western New York State
i

,

ALSO THE ADMISSION TO LI M1TED PARTNERSH IP OF
\
'
*
r
'
7
■»
t
'
r

*

ROBERT J.

HIGHLAND

V"_*

harold c. price

'

f,

Resident Alatiatjer

-

In Buffalo call:

-'-v

:

,,

Marvin J. Silberman

In Rochester call.

-

JWAdxson 4621

Enterprise 9182

SHEARSON, HAMMILL S CO.
BLOCKS OF

.

v
.

Founded in 1902

OF SEASONED COMPANIES
IN SOUTHERN CALIFORNIA

HARRY AND MYRON KUNIN

ji/titmle wiweblobk*
403 W. ath ST. LOS ANGELES




•

TU-563G

,

',

Members New york Stock Exchange.

Baciie
Founded

14 WALL STREET

'

NEW YORK

*

,

'

522 FIFTH AVENUE

BEVERLY HILLS

CHICAGO
PASADENA

HARTFORD

MONTREAL

DALLAS
BASLE

HOUSTON

(SWITZERLAND)

YORK STOCK EXCHANGE

AMERICAN STOCK EXCHANGE
OTHER LEADING STOCK AND

36

LOS ANGELES

Co.

1879

k

•

Principal Stock and Commodity Exchanges

&

.

MEMBERS NEW

and other

the

President ranged from the neutral, as

quarter
page

fourth

policies touched on by the
easing-of-importantrestrictions-with-some-protection, to the mildly expansionist, as
extension of social security benefits, aid to education, and govern-*
ment activity in the field of public health and welfare.

represents

industry, "The Iron Age" points out.

May

Other facets of economic-relevant

,

still

are

Wilfred

is the

The

results Clearly demonstrate that profit
getting narrower.
For example, U. S. Steel
Corp.'s net income was only 4.6% of sales last year compared with

margins

A.

side,

trade.

weekly states.
year's

(2), the
intensification, is quanti¬

principle seems to be established that controls will be aban¬
when they are not needed anyway. This conclusion is
by the President's accompanying gingery
attitude

new

,

about

In addition to the steel
strike, producers blamed inadequate
price relief to compensate for a record wage increase and increas¬
ing costs of goods and services for their poorer profit showing,

Last

War

"plank," barring tax cuts before indication of budget*balancing spending-curtailment, alone is de-flationary. It is de¬
flationary because of the pressure toward actual budget-balancing
supplied by- the withholding of the politically-desirable taxreduction bait to the Congressmen until they have come through
with major reorganization.
L

'

strike that cut deeply into operations and profit
third quarters.
The fourth quarter up¬
surge in earnings marked quick and complete recovery from the
paralyzing effects of the strike.

not the effect of

or

Union

from the 54-day

this trade

Whether

minor way.
only a very

toward

showing last year, it adds, resulted largely

in both the second and

guard

reinforced

during the fourth quarter of 1951, "The
metalworking weekly, states this week in its
steel

from

doned only

was

poor

Cold

Likewise

very
•

their

was

Fleet

Seventh

Asiatic policy as well as item

in-flationary

the

22%

the

tatively measurable, surely tne enect win oe
inflationary rather deflationary.

*

7 •;•*..*
year

new

all-round

gain of nearly $3,000,000,000 during the

a

pro¬

Communist

first half of 1953.

a

purchases of automobiles
with an increase of only

compared

General Eisenhower

China, might swell the
budget's Defense Expenditure total by an addi¬
tional one to one and a half billion during this

cuff" during December,
They ', added $617,000,000

'

ter Dinner at the

and

Message.

free

to

for

duty

scarce

instalment

on

This

of the

survey

th^t

Investment

•

Iron Age," national

Feb.

1953

good

underlying

this will actually follow from the de¬

as

cision

and supply is meeting
and catching up on

say,

income in the fourth

outlook for 1953 is

20,

continue

Board 'reports.

industry earnings last

of America winter meeting at the
Drake Hotel.
•

should

r,;-

-

-

The

(Detroit, Mich.)

Milwaukee

products.

20%

(Boston, Mass.)

Stock Exchange annual

Feb. 13, 1953

bought

Reserve

•

year.

Sheraton Plaza Hotel.

Feb. 11, 1953

business

of

record $16,500,000,000,

an-

(Chicago, 111.)

Winter

sofar

the

was

indebtedness

Steel

annual

This

average.

existing

budgetary curtailment.
stepping-up of the shooting war, in¬

The

,

...

Exchange

Boston Securities Traders Asso¬

29th

mines

Consumers

"

ciation

1935-39

the

to

and his

before

cuts

$239,000,000 in December, 1951.
Instalment credit to auto buyers
alone jumped $152,000,000.*. In the f'nal month of 1951, the total
had-.been reduced by $61,000,000." The huge December increase
pushed instalment credit outstanding at the close of 1952 to a

Field

Chicago annual
meeting at the Mid-Day Club.
Feb. 11, 1953

the

reinforcement

deflation is

or

message,

economic im¬
plications: (1) Extension of the Korean War.
(2) Greater Cold War activity.
(3) Scrapping
of Wage Price controls.
(4) Vetoing of tax

,

election.

Bond

ner

and

and! other

Feb. 11, 1953
,

of

the demand in many items considered
others, it further reports. - .'

Feb. 9,1953 (New York City)

.mial

236%

inflation

claimed four major policies with

during the next three or four months, according to
i January survey of the National Association of Purchasing
Agents. Increased production is reducing backlogs but new orders
are rising,
the agents stated.
Prices are holding stable, with a
tendency to dip as competition sharpens.
Very few materials are

EVENT

Stock

to

what

see

us

President's

reported, were adver¬
for help and in some instances
was

pace

COMING

American

very favorable,
labor shortage was

the

.

Investment

be
a

offered to prospective employees.

were

climbed

prospects

the

In

newspapers

to

areas

critically short, the buying executives

*

.

some

greatest in the nation's history,
the exception of October and November, 1943.
Full-scale
pushed the index for those months to a record high of 247%.

The

un-

years, it
has plowed $313,000,000 back into
the properties with all but
$50,-.,

000,000 in

It

factories

of

will

an

continued

in

from Ike

Ike spells

expansionist and restrictive elements is given
by the several
economic segments of
the

compared with 235% in December and 193% last July when out¬
put was held down by the steel strike.
Last month's production

iced direct-

tllied

Let

also close to

was

January of the current year increased
straight month, the Federal Reserve Board index

the fifth

revealed.

dimensions

pi

institutions,

and

Industrial production in

few

a

It

year ago.

Many manufacturers, it

special inducements

of

issues

that

fact

tising in out-of-state

plants to produce
products developed in its lab¬

other

ly

quite evident.

a

$64-question whether

re-highlighted by this week's State of the Union
lieutenants' following economy moves.

Noyember last.

employment

on

coupled with the

Corp.'s
projected record-breaking indus¬
trial issue is in
keeping with the
overall picture.
Allied plans to sell
$200,000,000
long-term debentures to finance
new

higher than the level of

Reports

Dye

construction

much

the postwar high of

phenomenal.

Chemical

preceding week

was

capital

The

Total industrial production in the period ended on Wednesday
last week was lifted slightly above the

of

chemical

Allied

This Week's Revelations

J

prospective buy¬

some

.

Commodity Price Index

turity, it

alent of

Observations..

Carloadings

1973.

longest

Production

Electric Output

maturity to around

"

In

Steel

The

5

WALL
'

'*"•

TORONTO STOCK EXCHANGE

COMMODITY EXCHANGES

STREET, NEW

YORK

TEL.: DIGBY 4-3600

L *

5, N. Y.

'

43

The Commercial and Financial Chronicle

.

.

Thursday, February 5, 1953

.

alysis of needs, prospects, and pol- the situations likely to develop
under this
new
management. -; '
icies, and saia:
Therein "a basic contradiction
"Continued Government exin the explanations given for busi¬
an
anonymous
host of
unseen penditures for goods and services
witnesses to testify as to what had
upon the
planned mobilization ness confidence in the next five
One is based on the com¬
been done to make a continuation scale will, in my opinion, support years.
of present prosperity possible if a
fully employed economy. If mitments made for high-level
Government spending, the accom¬
only the situation was not bun- business slows down, the policies
gled by the new Administration, adopted during the past 20 years panying high business spending,
This
section
of
his
report
is should bring about an early re- and the resultant high consumer
The other rests on the
worthy of Rotation:
■
.* versal of the downward trend, as spending.
faith of businessmen and private
"During recent weeks,- a va-.they did in 1949, without any adcitizens that the new Administra¬
riety of commentators far and ditional action by Government. If
wide have noted the profoundly .trouble develops in the economy tion will bring sound management s
into governmental affairs. But we
protective
and
stabilizing ele- by 1955, it will be due to condi¬
responsibility
for
apstrength of ,,these
built-in stabilizers-he appealed to

personal

Government's Role in

praising

'Preventing Depression
By EDWIN G. NOURSE*

Formerly Chairman, President's Council of Economic Advisers

}

Nourse discusses

"Economic Report to

recent

the Presi¬

dent," prepared by the- Council of Economic Advisers, and

Says there is a basic
for business confidence

points out its merits and deficiencies.
contradiction

in

explanations

in next five years.

given

Points out rising productivity is itself an

economic

our

which

during- the

system

it both ways.

or

political,

can't have

outside the

ordinary

dent

Eisenhower and

lican

Administration

international

tions,

built into

which have been

ments

problem and advocates: (1) deflation of public
overconfidence by government; (2) a balanced budget; (3)

.economic

the

are

If Presi¬

the Repub¬

keep
of the domestic economy
balance
the
which cannot be foreseen their promise to
budget, restore the value of the
the danger of any economic set- * now."
(4) putting money management in skilled hands; (5) decen¬
back getting out of hand- during
*• I find no occasion for surprise dollar, eliminate waste, and bring
tralization of public enterprise; (6) restoration of free markets.
the next few years is minimized
in any one of these three quota- about efficiency in all Govern¬
ment operations, there must be a
by broader and fairer distribution tions—all parts of the valedictory
This story is told of some dis¬
the New Year's prognostications,
of income among individuals and of- the departing Administration, decline in.Government spending,
tinguished mathematician of the and if he listens to the appraisals
economic groups; a more progres- What I am surprised at—and more a weakened inducement for busi*past.
He was asked
what he currently being made of the eco¬
ness
spending,
and
a
lessened
sjve tax system which automati- puzzled by—is the extent to which
would do if he were given a dif¬ nomic state of the nation as Pres¬
of
consumer
spending.
cally adjusts in part to changes business executives and business pow$*
ficult
ident Eisenhower and the Repub¬

f

conversion of Federal floating debt into

b-

p r o

lom

licans take

over, he will find the
predominant note one of great op¬

solve

to

within

10

timism.

rainutes

pain

on

death.

plied
laine
•to

take

problem so
that he would

what

just

its nature

was

what

and

.really

was

volved

in¬

in

Edwin G. Nourse

10 th

the

minute

he

mulate

his

follow

I

could

proceed
I

answer.

about

that

a

for¬
to

tonight.

course

presented with

am

to

propose

hypothetical

problem: How should government
in

act

the

economic

the Administration

during

area

which opened

more

recruits

those

who

ain't

To give a sensible and useful an¬

a

to that

question, one should
the constituent is¬

first

analyze

sues.

What is there in

situation, in
practices

our

the

economy

would

ex¬

to the threat of

major

no

of

some

If

one

looks

what

♦An

address

Annual

University

sponsored

back

was

a

month

written

in

■

to

the

by Dr. Nourse at the
Conference of New York

Graduate
by

_

of

to

it

see

-

lower'

conditions

world

stress

whole

mechanics

nomic

process,

in

as

permit,;

note

in

the

eco¬

emphasize
aspects.
The

the

new

of

the

economic

new

those

gospel

School

of

the

Business

Mortgage
Bankers
Associatipn of America, New York City,
'January 27, 1953.

system,

stalled by governmental
and

architects

during

quarter-century.

This

put

Report

of

the

in

not

the

of

our

do-

solved.

problemshave
We may face

...

future,

which

World

have

War II.

imprudent

in¬

tions

the

keen
the

the

It

.

Would

Government

neither Democrats

—

summation

nor New Dealers—have joined in
this carefree chorus., Not only do

but its

is

economy

devoutly to be

conf

a

wished!

-

implications for the market
manufacturers and mer¬

in which

these spokesmen from the busi.

al-

factors

These qualifica-

staff

elaborated

with

insight and broad balance in

Council's

review

accompany-

ing the President's Economic Re-

Presi¬

ocrats/and ^Republicans lauding of the Unseen Hand of classic trar
the importance of business confi- dition or the seen mechanisms of
>
dence, it is worth remembering built-in
stability, it will take a lot;
,that whlle a lack of confidence is, of
doing by business firms and
indubitably a weakening feature
individuals, possessed both of eco¬
in an, enterprise economy, mere
nomic savvy and of goodwill. It
confidence .will not indefinitely will at best take some time to ef¬
sh°re UP a shaky economic struc-.
fect
the
transition
and
some
.

^ure.

be

excessively

rely

stabilizing

ready in being."

since

occurred
.

.

to

the

upon

engineers
the past
view was

forward

the

was

particularly when
defense
spending can safely be
reduced, more serious tests of our
ability to avoid depression than

others

psychological

freshest

of

economic

not been

of stabilized prosperity

this

"Many

story.

mestic

prophets of

that

recognize

"It

era

"Economic

^year-end business summaries and

Eighth

sing,

more."

the

strikingly
"The Goose Hangs High"

review

chorus

the

new

its

rain

gonna

While

the

to

confidently

national codes is sounded by those who pin their
of business and po¬ faith to the "built-in stabilities"

depression at any time
during the next four years?

a

want

as

soon

our

litical behavior which
pose

present

national economic

our

institutions, in
.or

all

we

-

bankers,
farmers,.!.1 and C
stabilizes demand and stimulates ness world express confidence that chants,
phenomenally low,
private
investment;
unemploy- 1953 will be a year of good busi- wOrking people deal must not be *
and
prices
apparently
stable.
overlooked.*"£■'•
'
f
ment compensation and the rest of .ness but, again and
again, they
Added to this, profits for '52 held
If
the
budget is balanced by_J
the social ".security system; farm voice
the ; assurance that any
unexpectedly close to the peak
price supports; a far moie shock- ! downturn, when it comes, will be pruning $10 billion of prospective ;
level of 1951, and there are wide¬
Government
proof system of banks and, secu-; Vhnild -and
of *: shoH; - duration.!" ♦ expenditure '"-'from
spread expressions of faith that
rities exchanges; the greater firm-IvThey" lay great1 stress on the fact operation, there will be $10 billion
they will do at least nearly as well
ness of wage rates due in part-to-that
housing • starts remain un-' less of " immediate payroll land!,x
in
'53.
Here
and
there, to - be
strong unions; and more enlighfr^.expectedly^ high, ; that industrial procurement to support the-mar- };
sure, one hears a discordant note
ened business practices;-with re^.iand, commercial, intentions to ex- ket as it: is now- operating.
from those who are not so sure
spect to pricing, marketing;;*-eol->"veare well up to anroffsettidng. $10 billion;of"privat^T
the
business
cycle
has
been
lective bargaining, and investment; those rof jlast year. t and
labor's wages and purchases come' intp p
licked, those who — indulging in
the market? This is a- substantialf;
planning. And not the least of the weekly earnings still rising rather
"anthropomorphic symbolism" —
prothan falling off. But to me these reconversion, operation. I do not talk of a "tired boom," or those stabilizing elfects of these
seem more reminis- say- that; it cannot\be effected^by^'
who see "vulnerabilities" in the grams is the increasing confidence expressions
technological skill, the;yeco-^
in the maintenance of prosperity cent of businessmen's shortsight- the
business structure behind its im¬
which they inspire."
*
?
edness on past occasions than con- nomic sophistication' artd the ecb-;pressive facade of prosperity. But,
nomic enterprise of' our people/:
It should in fairness be noted: vincing as to the economic stabilwith skies continuing bright day
But I think that, instead of its be¬
after day,
there are more and that Mr. Truman went on to ^ of our future. With both Deming an automatic" process either

"dancing in the streets" of
Washington a week ago tonight?

with

swer

economists

level of

conditions; a

-

a

solution. Then
in

business

public expenditures which, while

.

minutes

analyze the

.see

in

processes

and

a

employment

re¬

that he

would

unprecedentedly high, un¬

indexes

of

He

only are production

Not

quarter-century.
There is
rather prevalent view that

past

now

long-term obligations;

really

t

patience and tolerance during the
Confidence in What?
laSV
'
This moves me to take a little
In' the camn of the optimists,
closer look at the foundation on,
it is argued that„ our rising pro¬
which the present structure of
■

.

confidence is being erected. First ductivity blunts the danger of in¬
flation
and
that the expanding
is the reliance on the innate vigor
flow of goods provides for rising
of our economic expansion. Somestandards of living and adequate
times it stresses population

growth, sometimes the advance in
technology, sometimes the mystisplendid achievements of his Ad¬ Isigned to restore the confidence cal levitation of rising standards
ministration and the Democratic theme to the document.
Appre- of living, sometimes the improveregime in general, Mr. Truman hensive'that'the public would not meht in our economic institutions,
pointed to what he called' "reen- fully grasp or that the report'did To a considerable extent in recent
not adequately expound his "re- weeks, there has been a tendency
forcements against economic fluc¬
iterated interest in the philosophy not so much to bother with analtuations."
Adroitly sidestepping of an expanding economy," he ex- ysis of any particular source of
dent," transmitted to Congress
Jan. 14.

on

Mr. Keyserling, however, in-

port.

serted

After looking back at the

note"

"amplifying

an

de-

horted
!

"Today, with
iour exportable

crying needs for
products among
free people throughout

millions of
the

world whose

very

freedom is

families
need

in

of

United

the

better

a

numerous

States

in

of liv-

standard

ing and a vast majority of the
people of the United States well
able

benefit

to

by a still higher
living,
with
the
possibly 50-50 that the

standard

of

chances
world

situation

call

may

for

intensification rather than

ening of

our

international efforts,

Eisenhower

the

and

wel-shall-clean
in

inaeed

tial

INVESTMENT

BANKERS

Established 1925

Members New York Stock Exchange and Other National Exchanges

UNDERWRITERS and DISTRIBUTORS

it

would

our

use

our

own

will

we

people
be

able

current produc¬

capacity, instead of realizing
the brains immeas¬

have

we

urably
and

of

whether

fully to
that

increas¬

be ironical if any Substan«-

segment

doubted

tive

course,

to increase

our

economic

political security in the most

•profound

sense

of

weapon

productive

drawing

by

the

Personally,

prosperity.

think

I

-that to rely on either the physical
*ac,tors, of. Population growth and
technological

BROKERS of

Private Wires

•




BONDS, STOCKS, COMMODITIES

Home Office: Atlanta

•

Phone LD-1 59

Mr.

ever-increasing
ability fully from its
went

either Mr. Truman

farther
or

Mr.

"separate
himself

note"

from

the

he

than

Keyser¬

ling down Confidence Lane.

In

a

dissociated

Council's

be
that

is itself
of
our
the answer to

the

than

rather

times

the problem.

wed

as

union

labor

certain

From
leaders

profes¬

from

as

sional

Labor's fight

regards

it

what

progress

inflation

process of

it

and

years

its

as

fair

aspect of the

one

the last seven

hardly

can

Continued

on

be

page

the

or

26

amination.
.-

Let

us

"growth

grant that we

much

better

in

are

and

situation"

that

a

we

a

institutional

setup

and

individuals

will perform
that will be

cause

an-

EXCELLENT LOCATION FOR

COMPANY

powerful groups

under the conditions
presented during the

next few years.

Here I find more

FUNCTIONS
OF EVERY KIND

for uneasiness than for con¬
Private

fidence.

tention

I want to direct your at¬

therefore

first

to

a

re¬

of

rooms

basis

the
have

we

in

the
our

to

human

the

problem

mass

economy

will

that

3000.

IRT sub.

sta.

in hotel.

MA in 4-5000.

the "new

Second, I want to apply this

analysis

to

downtown N.Y. Clark St.

the

management" that has just taken
over.'

for 10

Wonderful values! 3min.from
7th Ave.

of

examination
confidence

Clark

cogency

spiritual factor of "sound leader¬
ship" requires some further ex¬

our

sheath."

of INVESTMENT SECURITIES

however,

productivity
economic
problem

rising

share has been

in general than in 1929
(even though there are still some
"bugs" in it). The issue still comes
down to one of how responsible

relentless

and

employer

stabilize

economic soundness, and

have

ingly

both

Republicans tribute abundance."

and with the Soviet Union and its
an

this

the "economic for
Washington," return to
up

satellites

pursuing

to

employee. It may,
argued with equal

an

slack¬

a

inceptive

economists, we have the
strength in the future outlook as
to express confidence in our new statement that the pending prob¬
leader—to believe that with Mr. lem is that of "learning to dis¬

mess

imperiled by want, with

.

.

of

how

makes

up

behave under

/

st. George

HOTEL

Clark St.,
N. H. Free,

BIN'G

&

Brooklyn

Mgr.

C. R. Maison, Bqt. Mgi

BING,

Inc., Management

Volume 177 | Number 5192

.

.

.

The Commercial and Financial Chronicle

N£r ISSUE




%2,%iV2 2%%
and
Veterans'

Bonds, Act of 1951, Series D

PROVIDING FUNDS FOR FARM AND HOME LOANS
TO CALIFORNIA VETERANS

8

The Commercial and Financial Chronicle

'584)

Railroad—Analysis—Oppenheimer & Co., 25

Illinois Terminal

will he pleased

the firms mentioned

understood that
tend interested

Pacific

Missouri

parties the following literature:

New York 5,

City Banks
York

50

E.

Aid

—

James

St.

355

Street,

New

New

17

York

City

Bank

Bissell

Stocks—Laird,

market

performance over
Bureau, Inc., 46

man,

135

Co.

Broad

J.

Reich &

—

Co., 39

Co., Inc., 40 Ex¬

Wall

1

of

Stoehr, Inc., 80

1, 1969 are subject to re¬
demption Aug. 1, 1968 at par and

accrued interest.

& Co.,

Westinghouse

Electric Co.—Memorandum—Rotan,
Moreland, 705 Travis Street, Houston 2, Tex.

Hydrocarbon

Westpan

"

Corporation—Bulletin—de

Witt

Conklin

Or¬

Wisconsin Public

Co.—Memorandum—B.

Service

&

Co.,

G.

Mosle

Transit

Broad

Company—Analysis—J. V. Manganaro Co..

Street, New York 4, N. Y.

Central

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

Haupt

&

Co..

Ill

assisting California war veterans

&

Utility—Special study (ask for Highlights No
19)—Troster, Singer & Co., 74 Trinity Place, New York 6,

New York.

Consolidated

Paper

Corporation, Ltd.—Analysis—L. S Jack¬
son
Company, Limited, 132 St. James Street, West, Montreal
Que, Canada.

Craddock-Terry Shoe Corporation
Analysis—Strader, Taylor
& Co., Inc., Peoples National Bank
Building, Lynchburg, Va.
—

Federation Bank & Trust Company of New
York—Circular—
I. George Weston &
Sons, 210 Broadway, Long

Branch, N. J.

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

Libaire

the

Limited—Analysis—Aetna Securities Corporation,
Broadway, New York 6, N. Y. Also available in the same

bulletin

is

an

Pan American

Pan

&

Ilarrisburg

Co.—Illustrated analytical brochure—Blyth &

Beaver

Steel

York 5, N. Y.

Corporation—Analysis—H.

on

Sulphur Co., in¬

scribe, at $7 a share, for 499,325
shares of capital stock at the rate
of one
(1) additional share for
each 2V2
Feb.

&
a

Co

60

memo¬

Schering Corp.

Hollinger Consolidated Gold Mines, Ltd.—C
200 Bay Street,
Toronto, Ont., Canada.

C

shares held of record

18,

1953.

p.m.

The

underwritten
Co.

(EST)

Feb.

on

offering is being
Kuhn, Loeb &
Loeb, Rhoades

by

Carl

and

on

Rights to subscribe

4, 1953.

expire at 3:30

M.

& Co.

American

on

Fields

&

'

Co

located

are

Isthmus of

All

the wells drilled

date

are, the company stated,
what is believed to be one sul¬

dome

sions

lying

known

as

in

the

are

will

have

em-

pro-

a

day. Construction work is ex¬
pected to start not later than May
per

5' ,1
18

of

o?dmonths The balance
t0 leqU£L\P?"M
24

to

°! lHe
ot
the^

net proceedsissuance
'rom
shares will be

additional

applied

to

of

repayment

bank

loanvfurther exploratory and de¬
velopment work, for payment of
interest
on
the
Export-Import
Bank loan and of overhead during
construction

the

period,

and

for

working capital after the sulphur

seven.)
Now Parker & Co.
POUGHKEEPSIE, N. Y.—Sam-

18 Liberty Street,

uel Pedolsky,

conducting his investment

business under the flrm name of
Parker & Co.

LAMBORN &
99

WALL

CO., Inc.
STREET

YORK

NEW

5, N. Y.

commences

port-Import

1,747,639
a

credit,

Bank

will

American

and

advertise-

re-offering

ment showing names of associate
underwriters, etc., appears on page

operations.
Upon completion of the offering
and after giving effect to the Ex¬
plant

of capital

shares

Raw— Refined

—

stock

promissory

5%

$3,664,000

sugar

Pan

outstanding

have

Liquid
-Futures

Exports—Im ports-

representing the credit.
DIgby 4-2727

Phila. Inv. Women
Lecture

com¬

on

at

and

amortized pur-

an

on

and

the basis of the wells
drilled so far, at 7,257,401 long
tons and probable additional reserves

plant will
process of

capacity
of 3,300,000 gallons of hot water

conces¬

which
are
located
Potrerillos,
principally in the Municipality of
Jaltipan. Proven sulphur reserves
puted,

The

Frasch

ploy the
duction

note

Jaltipan

in these two concessions

*'

the

on

Tehuantepec in South¬

Mexico.

phur
Hentz

Street, New York 4, N. Y. Also available is

randum

American

develop sulphur concessions in
Mexico, is offering to holders of
its
capital stock rights to sub¬

to

R. Grace

Co., Inc., 14 Wall Street, New

Sulphur
$7 per Share

Stock at

ern

analysis of Falconbridge Nickel Mines Ltd.

State

chase basis.

(Official
concessions.

The sulphur concessions of Pan

Frc-bisher

acquire farms and homes, the
of which must be repaid to

to

cost

Corp.—Memorandum—The Marshall

corporated in 1947 to explore and

Central Public

authorized for the purpose of

are

Phillips

The bonds

eral fund of the State.

&

Co., 765 North Water Street, Milwaukee 1, Wis.

Exchange.

obligations

California, payable
in accordance with the Veterans'
Bond Act of 1951 out of the gen¬

of the State of

Copper—Memorandum—MacNames

&

opinion of counsel, these

will be general

bonds

Broadway, New York 6. N. Y.
Pyrite

of¬

Aug.

York—Analysis—
Williston, Bruce & Co., 115 Broadway, New York 6,
Power Co.—Analysis—Jacques Coe

are

yield of 1.10% to a dollar price
99^, according to maturity.
Bonds maturing on
and after

a

Corporation—Bulletin—Lewis &

Company

D, maturing from Aug. 1, 1954 to
1973.
The bonds are scaled from

New

Street,

of

Baltimore

W.

Co.,

Co., 44 Wall Street, New York 5, N. Y.

Tokyo—Analysis—Nomura Securities Co., Ltd., 1, 1Chome, Kabuto-cho, Nihonbashi, Chuo-ku, Tokyo.
Also
available is a bulletin of quotations on the
Tokyo Securities

111

&

Street, New York 4, N. Y.

Weedon

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

50

Free Income issues, and a bulletin dis¬
Bonds for Maintaining Real Income.

Railway—Data—Cohu

Trust

fering $100,000,000 State of Cali¬
fornia 2V2%, 2% and 214% Vet¬
erans' Bonds, Act of 1951, Series

In the

change Place, New York 5, N. Y.

Bank

Bankers

list of Portfolio sugges¬

Ltd., 66 King Street, West, Toronto, Ont., Canada.

American States Oil Co.—Data—Greenfield &

Plywood

R.

39

Broadway, New York 6, N. Y.

Atlas

a

N. Y.

South

*

Memorandum

—

issue is

same

Merged groups headed by Bank
America N. T. & S. A., and.

of

Brief discussion

—

Tax
vs.

Washington Water

*

Gas

Title Guarantee and Trust Company of New

Treasury Exchange Offering—Analysis—Aubrey G. Lanston &
Co., Inc., 15 Broad Street, New York 5, N. Y.
American Maracaibo

1953

Cold

Super

La Salle Street, Chicago 3, 111.

*

Offered to Investors

York 5, N. Y.

Pension^ Plan Funds.

Company,

and

Southern

Co., Inc., 70 Pine Street, New York 5, N. Y.
&

Valley

cussing Stocks

Public Utility Common Stocks—Comparative tabulation—G. A.

Blair

Post Office Square, Boston 9,
I

tions

of Investment—Study—Department CF-7 Kidder,
Peabody & Co., 10 East 45th Street, New York 17, N. Y. Also

Tidelands—Analysis—William

Of State of Gaiifornia

Analysis and review of the Cement

—

& Co., 10

Also available in the

Principles

Saxton &

granddaughter,
born on Feb.

a

$100 Million Bonds

in "Gleanings"—
Francis I. du Pont & Co., 1 Wall Street, New York 5, N. Y.

Dillon & Co., 15 Broad Street, New York 5, N. Y.

of Investment of

Cement Co.

Grande

Rio

Company, Swift & Company, Cudahy Packing Com¬

Study

Street,

Broad

memorandum on

Co., 210 West Seventh Street, Los Angeles 14, Calif.

13-year periodFront Street, New

Hygrade Food Products Corp., and Wilson & Co.—East¬

a

25

a

Mass

a

pany,

available is

with

2nd.

Republic Pictures Corporation—Analysis—Dempsey-Tegeler &

York 4, New York.

&

&Co.,

Also available is

Y.

N.

4,

Industry—Lerner

Packing Industry—Analysis with particular reference to Arm¬
our

York

Riverside

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

Quotation

parents,

Alice Denise Bailey,

Southern Natural Gas Co.

parison between the listed industrial stocks used in the Dow-

and

Corp.—Memorandum—Hirsch

New

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

National

Association, has now en¬
ranks of proud grand¬

the

tered

Corp.—Memorandum—H. M. Byllesby & Company, In¬

Philco

&

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

yield

Co.,

corporated, 63 Wall Street, New York 5, N. Y.

City Bank Stocks—Year-end comparison and anal¬

of

Traders

East Mason Street, Milwaukee 2, Wis.

Loewi & Co., 225
Palace

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

York

ysis

trust

Terminal

Corporation—Special Report—

Nuclear Instrument & Chemical

quarterly comparison of leading
companies of New York—New York Han-

&

President of the National

Tower, Cleveland 13, Ohio.

Canada.

seatic

Sachs

Arnold,
Goldman,
New York City,
Security

L.

Harry

by Lynne L. White,

Road—Reprints of address

Plate

rity Analysts, Inc.—Nickel Plate Road, Room 2510,

New York Bank Stocks—83rd

banks and

E.

President of the Road before the New York Society of Secu-<

Que.,

Montreal,

West,

H.

—

"

Canada—Bulletin—Nesbitt, Thomson and Com¬

Ltd.,

Analysis

—

Cohen, 14 Wall Street, New York 5, N. Y.

Herrman &

Nickel

Company

Machinery

Rubber

National

basic

containing

Company, 61 Broadway, New York 6, N. Y.

&

Natural Gas in
pany,

brochure

of

200 securities selected for 1953 investment—

on over

F. Hutton

edition

10th

Building, Toronto, Ont., Canada.

Bank

Co.,

Weir &

Oil—Memorandum—McLeod, Young,
King Street West, Toronto, Ont., Canada.

figures

Man., Canada and Royal

Portage Avenue, East, Winnipeg,

Canadian

Investor's

Lead—Memorandum—James Richardson & Sons, 173

National

Laird, Bissell & Meeds, 120 Broadway, New

—

5, N. Y.

Deetjen

Railroad—Memorandum—Emanuel,

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

&

York

New

of

Portfolios

Bond

Government

of

Analysis—Vilas & Hickey, 49 Wall Street,

—

N. Y.

Pacific

Missouri
Breakdown

You

Southern Utilities Co.—Memorandum—Kidder, Peabody
'*,& Co.; 17 Wall Street New York 5, N. Y.
La Salle National Bank of Chicago—Memorandum—The Illi¬
nois Company, 231 South La Salle Street, Chicago 4, 111.
Loblaw Groceterias—Memorandum—Collier, Norris & Quinlan,
Aldred Building, Montreal, Que., Canada.

Recommendations & Literature
to

5,1953

Iowa

Dealer-Broker Investment
It is

Thursday, February

.

Happy Grandpa to

New York 4, N. Y.

Broad Street,

..

Meeting

Established

1856

PHILADELPHIA, Pa.—The Inx

A

..

,

__

vestment Women s Club of Phila-

4,570,510 long tons. A delphia will hold its fifth educapart of the structure tional lecture under sponsorship

H. Hentz & Co.

substantial

Attapulgus

Kerr-McGee

the

Kennametal

and,

company,

the

serves

Mfg.

Jacob Ruppert Pfd.

Bought

—

Sold

—

Quoted

Troster, Singer & Co.
Members:

,ru

,.

N.

Y.

Security Dealers Association

74 Trinity Place, New York




6, N. Y.

in

the

remains

according
extent

of

any

unexplored

be

to

to

of

,

Stock
ro0m

American

has

,

_

.

Exchange

at

-

Baltimore

of the

Members

5.15

Fidelity-Philadelphia

arranged .Trust Company. The speakers will

ninhgetoXraIroroS4^ £ Mr. Axcbibald Dea Johnson,
000. which funds, together with Vice-President of the Philadelphia
approximately $1,986,000 of the National Bank, and Mr. John R.
proceeds from the sale of the Huhn, Vice-President of the Stock
shares, will be used to finance the
Clearing Corporation of PhiladeL
construction of a plant, at an esti,

cost

of

$5,650,000, for the

.

_

.

,

.

,

Phiaj Their subject will be "Bro-

production >of sulphur from those kerage Clearances/'

Exchange

Stock

York

New

■

...

/

Exchange

Cotton

American

Exchange

Exchange,

Commodity

Chicago
New

Board

And

of

Cotton

Orleans

other

N. Y. Cotton

net

mated

Stock

York

New

_

p. m.
is Tuesday, Feb. 10th, in the board

re-

area

Philadelphia

the

the

not known.
Pan

'

concessions

explored

American Enka
Em hart

of

Inc.

Trade

Exchange

Exchanges

Exchange Bldg.

NEW YORK 4, N. Y.
CHICAGO

DETROIT

GENEVA,

PITTSBURGH

SWITZERLAND

Number 5192

Volume 177

...

The Commercial and Financial Chronicle

(585)

j

out.that under existing rules and

]'

in

Federal laws and regulations
originated in 1930's.

Keith Funston, President of
the New York Stock Exchange, on
Feb. 3 released the report of a

Board

Special

meeting

Committee,

headed

Co., and
pointed

deems

&

Mr.

G.

auc¬

Keith

Funston

increasing the vol¬

he

ap¬

account

special

customer be

transac¬

tions.

Committee," Mr. Funston

the
Committee's report, "has explored
in making

public

phase

every

of

blocks

ing

of

been

making the

effective

nation's

max¬

contribution

economic

to

growth.

dreds

Permissive

Committee
that

the

to

for

Incorporation:

expressed

the

in

contributory
factor to recent low trading vol¬
ume on the
Exchange is the large
of

security

in

listed

stocks

securities

off

Committee

the

or

Ex¬

the

the

is

stated

its

unsound

convic¬
and

public interest for
to

make

which

tain

re¬

a

corporation's equity securities
within a period of less than six

months.

Any

person
subject to
is,
the
Committee
pointed out, in effect conclusively

the

statute

presumed to have made
use

of

seils

unfair

an

information if he buys and

within

months,

no

a
period of six
matter what the facts

are.

The

Committee

repeal

of

this

recommended

section

also

and

to seven days
the period in which insider trans¬

not

actions must be reported. At pres¬
ent such transactions must be

in

their

ported

within

of the month

in

which

the

first

10

re¬

days

following the month

the

transaction

was

made.
"We

believe," the Committee
said, "that this information thus
reported

changes in the rules
him to do

The

to

en¬

would

be of

far

significance and value

to

greater
the

in¬

vesting public."

Securities Act

of

The Committee made

of

Spencer Trask & Co.; Robert
Boylan, at E. F. Hutton & Co.;
John A. Coleman, of Adler, Cole¬
man &
Co.; Charles B. Harding, of
Smith, Barney & Co.; George R.
P.

so.

1933

and

(he Securities Exchange Act 1934:

corporations, the
as is now exer¬

for the'

ex¬

an

transactions

have

sue

more
Members of the Special Com¬
effectively to
liquidity of the market and mittee, in addition to Mr. Klingen¬
Committee recommended cer¬ stein, were: William K.
Beckers,

courage

would not be eligible. The same
Among specific proposals of the close control could be maintained
member

it

may

covery of any profit made by an
insider who purchased and sold

contribute

can

rations, in those cases where vot¬
ing stock
is
held
by
persons

over

also

corporation

listing. The proposed to shorten

Floor Traders: The member who
trades only for his own account

Committee's report."

were:

Exchange

usefulness to the public.

recom¬

answer

qualify them

primary
market on another
exchange, be¬
cause
such
dealing dilutes the
primary market and, to that ex¬
tent, impairs the primary market's

not

securities

that

the

change

Exchange who do

unlisted

The

dealers

Stock

tion

belief

important

an

lieve

Committee

a

hun¬

of

committee

The

actively engaged in the business of

our

create

of the

stature which would

to

block.

the corporation. Banks, investment
trusts
or
insurance
companies

the

to

floor

orders

the

I

in

be

bringing

absorb

to

why and I be¬

have the

should

purpose

market for securities

pay

commission

wanted to find out
we

argument

ing of other exchanges whose real

"The plain fact," Mr. Funston mended that
non-members be al¬
said, "is that the Stock Exchange lowed to join the Exchange even
and
the
equity capital market though they do business as corpo¬
not

lowering list¬

The

the grounds that

on

purchase

change.

imum

rejected

argu¬

business

another member firm for

in

improve it.

the

lower listing standards would not
be
in
the
public
interest and
would interfere with the function¬

the account

or

requirements.

was

for

permitted to

or

business

recom¬

securities

considered

that' additional

companies which, al¬
though they may be sound, have
not yet developed in the size or

fee

members of the

our

Exchange

of

member firm selling

listed

group

have

Stock

practically

a

a

and

tion market in

explained,

of

revision in

that

or

of

own

mend ways and means to broaden

a
view to broad¬

and

said

block

their

the auction market and to

Ex¬

securities

Funston

member

a

inquire into the present state of

the

of

"The

pro¬

Incorporation,
a

distribution

pointed the Special Committee to

change, with

-

Permissive

one

bership for approval.

responsibil¬

of

the Board

as

Only

the Constitution of the Exchange,
must be submitted to the mem¬

to

mendations

ume

policy

last

covering the
operations and

ening the

monthly

Ex¬

which would involve

recom¬

ities

the

of

Jan. 15, for considera¬

on

advisable.

posal,

studies

Stock

the

at

a

ap¬

August
and

Governors

the

the Committee recommended that

accepted by the

tion and such action

of

Wertheim

of

change,

by

Joseph Klingenstein

make

The report was

disadvantage in competing

listed securities. To place the two
markets on a more equal basis,

auction market due in part to

G.

would be created by

a

with the over-the-counter market

presents recommendations aiming at increase in floor transac¬
tions on New York Stock Exchange. Finds gradual attrition of

•

ment

is at

Survey by Special Committee, headed by Joseph Klingenstein,

Committee

regulations' the Exchange- market

Proposals for Stimulating NYSE Trading

9

a

number of

technical recommendations

Kantzler, of E. F. Hutton

& Co.;
Loeb, of Carl M. Loeb,
firms, their of the market.
Rhoades & Co.; Robert A.
economy of a free and broad auc¬
Magopartners
and
tion market in securities, our ob¬
employees.
This
One
of Merrill Lynch, Pierce,
proposed
amendment
to wan,
months and a 50% cut in the ef¬
ligations to the public and to in¬
change would also enable present the 1934 Act deals with the unfair Fenner & Beane; Wesley A.
fective rate on capital gains; an
dustry, our relations with govern¬
Stanger, Jr., of Riter & Co.; Percy
to
increase from $1,000 to $5,000 a partnerships to adopt the corpo¬ use of information available
ment
and
the
M. Stewart, of Kuhn, Loeb &
Exchange's own
Co.,
rate form of
so-called insiders. The section af¬
year in the allowable capital loss
doing business.
and Robert L.
rules and regulations. The Com¬
Stott, of Wagner,
deduction from income, excess
Listing
Requirements:
The fected
mittee approached its task with
(16[b]) provides that a Stott & Co.

activities—the

importance to our

objectivity and thoroughness and
has produced a timely and excel¬
lent report.
•

"One

of

the

most

significant

recommendations,": Mr.

for

first

the

time

up

losses

in

the

160-year history of the Exchange.
Although this proposal has been

A

reduction

to

be

carried

over,

present, for five years;
ual

income

tax

in

on

as

Committee

cised

over

said,

recommendations

in¬

The

broad

of

10%

equity

objectives of

proposals,

the

should

the

be

of
se¬

This announcement is not an ojjer

of

any

and

of

double

transfer

tax

mends
out

fications of the Securities Act of

Board

a new

Exchange

basis for

com¬

puting margins; internal changes
in the Exchange to provide for a
more liquid market; closer liaison
with

banks

and

other

fiduciaries

to

clarify the importance to them
of the
Exchange market; more
vigorous efforts by the Exchange
and the Exchange membership to
list qualified companies.
"Some of the recommendations
of

Committee," Mr. Funston
commented, "will have far-reach¬
ing effects on our business if they
are

Some

approved.

radical;
rent

some

may

appear

coincide with

cur¬

objectives of the Exchange.

Each recommendation has my full

support."
The

Committee found that the

factors,

i

"(1) Political and economic
policies—such as the Federal tax
program

—

change has

over

no

which the

Ex¬

elimina¬

Southwestern Public Service Company

divi¬

of

provi¬

discriminate against organized
markets.

that

"the

the

time," the report
Committee is aware

same

Exchange

the

and

Ex¬

that

the

the

we

vigor the
able to

are
.




.•<

\s

Prices:

Exchange
Federal

101% for the Bonds

recom¬

$100

work

Reserve

per

share for the Preferred Stock

plus accrued interest and accrued dividends,
respectively, from February 1, 1953

prevailing in the

293,462 Shares Common Stock

present extremely limited amount
of credit

in

market,
mended

use

in

the

securities

Committee

the

rate to 40%

from 75%.

Institutional

Purchases

and

Sales of Securities: The Commit¬
tee

sion

recommended

that banks, in¬
companies, trust and pen¬

funds

be

informed

Par Value $1 per

s

that

the

The

Company has issued warrants, expiring February 17, 1953, to holders of its Common Stock,
evidencing rights to subscribe for these shares of Common Stock at the rate of 1 share for each
12 shares held, with the privilege of subscribing for additional shares subject to allotment if total
subscriptions exceed 293,462 shares, all as more fully set forth in the prospectus. Unsub¬
scribed Common Stock may be offered by the underwriters as set forth in the prospectus.

Subscription Price to Warrant Holders:

increasing diversion of their busi¬
ness

from

the

Exchange

Committee

stated,

has been

because

dealings

price obscures
the equivalent of
may

already be

the
a

commission

ac¬

at

fact

a

per

share of Common Stock

that

Copies oj the prospectus relating to the Bonds and Prejerred Stock and oj the prospectus relating to the
Common Stock map be obtainedjrotn such oj the undersigned {who are among the
underwriters named in the prospectuses) as map legaltp ojjer these

securities under applicable securities laws.

commission

included

price; adding that, in
a

$21.50

tends

eventually to impair the liquidity
of their holdings. This trend, the
celerated

Share

recom¬

reduction in the current

a

in

the

many cases,

Dillon, Read & Co. Inc.

is nevertheless

charged to the customer.
Specialists: The Committee
ommended
of

vigorous

rec¬

Exchange policy which requires
specialists to buy or sell
_

enough stock for his

own

an orderly
liquid mar¬
ket; enlargement of the financial

ist; and

available to the special¬
of a system to

creation

permit specialists to compete more
effectively with non-members in
purchase

sale

oi

Blyth & Co., Inc.

Incorporated

Goldman, Sachs & Co.

Harriman Ripley & Co.

Kidder, Peabody & Co.

Incorporated

Carl M. Loeb, Rhoades & Co.
Stone & Webster Securities Corporation

White, Weld & Co.

Smith, Barney & Co.

Union Securities Corporation

G. H. Walker & Co.

listed

The Milwaukee Company

Off-Floor
curities:

and

Blair, Rollins & Co.

_

account

to maintain

resources

Eastman, Dillon & Co.

enforcement

stocks.

sufficient

\

where

Share

securities business. In view of the

tacked

which

Par Value $100 per

-

ing margin rates

the

with

20,000 Shares 4.60% Cumulative Preferred Stock

long-term policy of fix¬
on the basis of

a

credit conditions

change community have not at¬
problems
solve."

$12,000,000 First Mortgage Bonds, 3V2% Series due 1978

substantially lower.

„

restrictive

sion of the Securities Acts which

added,

states

the

control.

"(2) Certain

"At the

to

and

net

inability of the market in recent
years to develop the breadth re¬
quired for an expanding economy
was
due, in large part to two

.

tax

with

surance

the

solicitation oj an ojjer to buy securities.

February 4, 1953

capital gains

on

taxation

Margins: The Committee

stock transfer tax; specific modi¬

1934;

or a

said,

dends.

elimination of the New York State

1933 and the Securities

o]securitiesjor sale

these

Committee
eventual

tion

Immediate Federal tax reform;

Act of

L.

curities.

the rate is

cluded:
,

John

at

rejected by the membership on
Stock Transfer Taxes: Elimina¬
previous occasions, the Committee
presented strong arguments that, tion of the New York State Tax
in the best interest of the public on the transfer of securities. This
and the securities industry, the New York
tax, the Committee
Constitution of the Exchange pointed out, is diverting securities
should be amended to provide for business from this state to ex¬
Permissive Incorporation."
changes in states which haxe no
•
Other

aimed

largely at increasing the liquidity

member

individ¬

an

credit

dividends received

the

corpo¬

Taxes:

the holding period of the Capital
Gains Tax Law from six to three

Funston

pointed out, "would open
Exchange membership to
rations

Federal

Trading in Listed

The

Se¬

Committee pointed

Rauscher, Pierce & Co. Inc.

10

The Commercial and Financial Chronicle

(586)

prises

terials,

e

in

scare

forward

or¬

for

raw

materials

placed

were

and

mills

fey

finished

for

by

goods

That

consumer

goods

third

the

from

1950, to the third
increasing com¬
petition in I the sale of those goods,

quarter

of

quarter of 1952,

some

cutting of prices, some with¬

holding

forward

of

and

orders,

We

now

are

through a

going

period when new balances are be¬

ican

Credit

NEW

27,

Conference

of the Amer¬

Chicago,

Association,

Bankers

January

insistence

broad

the

is

goods.

would

like

to

of

competition

goods,

sumer

111.,

1953.

commit-

be

canceled,

to

Congress on

\\

igzft,

Eisenhower

inaugurated

was

of $2.5 billion in estimated
income for next year. Whether the
normal corporate income tax will
be increased or not, to make up
this decrease, is questionable in

how

n0w

this

about

budget?

what effect will it have on business?

ready been put into effect in the

outlined

M-47

and

M-48

of

production

That

see.

us

expenditures

budget

view of the tremendous pressure
to cut taxes someway somehow.

$78.6

of

income of $68.7 bil-

billion, and

2V2-ton trucks. It will

and

tanks

Let

iion> leaving a deficit of $9.9
if additional- billion. We are now in a position
are put
t0 watch what the incoming Adinto effect by the new Secretary ministration
can
and
will
do.
of Defense in the months immedi- Will
that
1953-1954
budget be

Summary

be interesting to see
cutbacks

cancelations

or

ately ahead.
On

1952, when Robert

Sept. 8,

C. Turner

inducted

was

as a mem-

of Economic

Council

the

of

Ad-

to the

visers

President, he stated,
"defense" expenditures were

that

virtually

program. Let us hope

crease

as

president.

fro in

release

A

be

to

have

will

submitted to the
Friday, Jan. 9,
days
before
General
was

year

g3r(j

Washington dated last Dec. 9, insome
stretch-out had al-

The highlight, I
repeat, is on in¬

distribution

and

duction

fiscal

dicated

their peak

at

it would "be

competition in the pro¬

creasing

these

of

need

deliveries

stretched"* out.

for

picture

will

ments

reducing expen-

on

portion

some

or

1,660,000 retailers, for our
210,000 wholesalers, and for the
manufacturers
producing con¬
sumer

the defense

Chairman of the House Appropriations Committee, have been

balancing the budget,

ditures and

in

that

and

difficult and deli-

a

cate

So there we are. The immediate
outlook is bright with increasing
sales, somewhat smaller profits
trimmed to $70 billion during the due to the competition., squeeze,
early months of this year, or will wBh little change in wholesale or
it follow what" in the past two retail prices, high employment at
decades has become
traditional the highest wage rates in history,
politician campaign oratory, and a low rate of business failures
remain largely untouched.
That (in 1952 they were 6% below 1931
is no simple problem to the busi- and 17% below 1949), and a high
nessman
because on that action backlog of orders
in the hard
will stem a continuation of our goods industries producing for de20 years of unimpeded inflation fense.
■

job to maintain" as he termed
prosperity." When the
dip the or finally, at long last or ternfollowing day, John R. Steelman,...porarily, as the case may be, a
Assistant to
the President, and halt in that process, and simul-

con¬

it "present

which

These conditions are descriptive
of boom conditions, but for how
long no one knows. We must keep
however, is only part of the busi¬
Henry H. Fowler, Director of De- - taneously some respect for prom-. m mind that economic life is a
ness picture. The other part comfense Mobilization,
pointed o u t ises made in public life.
fluctuating reality, and no way
that this was not so. Expenditures
perhaps a little history is in ^as
^een found to keep our
for national security at that Time
order.
Man
people have long economy or any other economy
were running at the rate of $12%
forgotten
that
the
Democratic ?" » constant high level of activwe

by Mr. Foulke before the

•An address
National

its

sales and

our

heavy inventories of

meant

no
you

pro-

that is, particularly when
it means cutting some fat even off

for more employees; the most consistent advocates of
still building additions d reduction in this budget to $70
facilities to handle billion, and the budget in the
the increased volume; and practi- /following
year
to $60
billion,
cally all are making substantial General Eisenhower campaigned
profits on Government orders. If strongly on that basis. This last
the new Administration is firm in •. Truman
budget lor the coming

profits.

That

retailers.

and

1 don't need to tell

an extremely difficult

gram

their plant

profits.

Foulke

A.

Roy

wholesalers

new ones.

are

to

production, forward or¬
ders, inventories, and prices in
consumer goods. That is the most
natural thing in the world; and
in that process we shall now have
a period, unless some new calam¬
ity arises or is created by political
expediency, when prices and
values will, as they should, affect
supply and demand.
That will
mean in
1953, business at a high
level, but competition which
should
reduce
prices
somewhat
ahd, in that process, cut into net

buying, heavy
ders

shrinkage in

some

ness

result of

that

During the past three months, we

the concerns, in

large,
goods

and

many

ing worked out in everyday busi¬

January, 1951.
a

many programs,

whittling others, and starting

looking

goods industries. Foresees little reduction
in Federal Budget.

the

conflict

As

York

when
t h

abandoning

mean

at long last that the spirit and determination is there; but as bankers and businessmen, we will believe it when we see it, no sconer.
Moreover, if the budget for next
year is cut to $70 billion by the
most heroic of efforts, there will
still be the problem of balancing
the budget.
The Excess Profits
Tax expires June 30, and there
is every indication that it will not
be extended. That will mean a de¬

Chinese

the

in

and sub-subcontractors; many are

You will recall that we had two

entered

difficulty

having

actually

If

prime contractors, subcontractors,

periods of scare consumer buying
—one immediately after the out¬
break of the Korean war in June,
1950, and

Industries

Administration.

this objective is reached, it will

high level, but competition will squeeze

sales will continue at

other

the incoming

knows." Says

By

for business and

immediate outlook good

consumer

that is the commitment made by

Brew-

spending its money fast enough.

•

y

the

as

v/hat

banking, but how long boom will last "no one

profits in

billion

•

ster in ''Brewster's Millions," was

"
a

^

Goods

Hard

$10.3

estimated

have been in the political throes
the hard
industries have ;0f, reducing the 1953-54 budget
booked billions upon billions of verbally.
Senator Taft and Repdollars
of
forward
orders — resentative John Taber, the new

Vice-President, Dun & Bradstreet, Inc., New

Foulke finds

How about

supplies.

and

-

equipment; ma--Defense Department," like

them?

By ROY A. FOULKE*

Mr.

tremendous

those

have

orders for defense

Thursday, February 5, 1953

.

might drop to $6 billion from the this budget to $70 billion,.and still

hard goods industries

our

which

Business Is Good, but Competition
Will Squeeze Profits

.

.

have not had for 14 years; and

on

smaller

stock market took a sharp

profit margins.

That,

billion

February 2, 1953

ISSUE

and

quarter

per

would

platform

of

1932

the

was

''y'

most

adurmgboom Periods that

re-

seeds are always sown for the

they said, probably around
middle of 1953, and wduld

spects the soundest from an eco-

difficulties of the succeeding

then level off for about two years

0fferecj to the American voters in

reach

Bon,
the

250,000 Shares

peak of around $14

a

bil-

conservative

and

viewooint

nomir

in

manv

that

has

eventual downturn, and it is dur-

been

atmg activity that credit and fi-

it, I would add, there were no new

That

tinued

President and Directors

r<wnt decades

"emergencies."

Federal expendileveling-off

Sf plaU^rm pledged^ a" draslic ^Dnlv
induction of
25% in
multiply.

tures

heavy

Company

Manhattan Company)
of the

(Bank

in

All

look

is

bright.

struction
work

have

($10 Par Value)

'( offered
shares

the.

rate

of

outstanding Capital Stock

one

share for each

exnenditures

Federal

Awards

of

wpre

to

con-;■ currency

representing
in the future,

done

be

onlv

■

are

ten

on

s,mh

^us'fo^^dTilv tortf the lm~
foVf'
us in our daily work>
gl J

contracts,

continued

foTJtZ'fhtt

To the extent that such

Fed-

annual

hazards."

be

You

budget
"sound

a

a

preserved
know

at all
what hap-

essenea-

J. G. Luitweiler With

Hayden, Stone & Co,

a

in
our
history on the highest spending, of pump' f priming, of.
hourly rates on record. Sales will compensatory spending,; of ecocontinue
at
a
high level;
but nomic nostrums, of gravy trains, ofcompetition will squeeze profits pressure groups, of perpetual-moin the consumer goods industries tion economics; and
we
are
all
at
all levels
manufacturing; paying for it with higher and
wholesaling,
and
retailing.-1-In higher prices and less and lessr
the hard goods industries produc- for
our
savings and
our
life

being;

the right to subscribe at $31 per share for the above
at

least

pened. .Not one finger was raised
high level.(/to put that program into effect.
Labor is the most fully employed We have had 20 years of deficit

Capital Stock

Holders of the Bank's

to

ringing words

all, the immediate out- (annual expenditures —
business in this year.'of balanced annually, and

for

1953

*

at

In

^^endftuJlf wheu

the hard goods indus:

in

tries.

of the Manhattan

con-

after the

even

process

means

—

shares of Capital

.

Stock held of record
rants

will

expire

at

January 30, 1953. Subscription War¬

on

3:00 P.M., E.S.T.,

on

ing for the Federal Government,

.

the outlook is bright even if there

February 17,1953.

might well be

some

The several Underwriters have
to

purchase

any

of

Capital Stock

as set

may

offer shares

an

be obtained from the undersigned only in States
dealer in securities

.

our

Philadelphia




b?Ii

up

to the promises its leaders

security

were

$27.1 billion,
The
problem of
cutting
For the year-1953-1954
budget from $78.6

members of the New York Stock
Fxchane^

changes,
t;v~

;n

and

as

other

leading

Ex-

registered representa-

their

midtnwn

nffiee

at

Luitweiler & Co.

J

une

to

of 70 %

30,.. 1952,

$46.2 billion,

they.
am

in-

over'fiscal 1951.

expenditures of the

Fed-

Governmept for the current

Eon

this
bil-

J. P. Masterson Joins

to

$70 billion is no simple
problem. It is no simple problem

because the budget is loaded with
spending commitments already
authorized by Congress. For ex-

ample,

the

budget

includes

$7.8

Quincy Cass Associates
(Special to The Financial Chronicle)
-

LOS

ANGELES, Calif.

—

John

F» Masterson has become associated with Quincy Cass Associates,

billion for foreign aid. Somewhat 523 West Sixth Street, members
$79 billion; of which 74% or over $5.5 billion of that, money of the Los: Angeles Stock Ex$58 billion was for national: se- was appropriated in prior years .change, Mr. Masterson has recurity.- Receipts were estimated -by Congress, and a substantial cently been with Hannaford &
at- $68.7
billion, indicating that portion is already tied up in con- Talbot. In the past he was Man-

Corporation

Cleveland

lives

Administration

James C. Luitweiler has joined
the sta({ of Hayden, Stone & Co.,

bilUpn;. gave; over and over again to the 575 Madison Avenue, New York
yeai ending June 30, J951, public ..during the campaign of city. Mr. Luitweiler was formerly
n1 fU expenditures for., na-*4as* autumn-we shall have more. for many years partner in Bendix,
l yea^°f the,Ko*ean inflation over the years.;
our
•• -- *■-

fiscal year-which ends next June
30 were estimated in the budget

Pittsburgh

new

James C. Luitweiler

of

$17.6

Total

Boston

deficit spending. Unless that defi«t spending is halted by

j

years

were

ending

eral

-

I

expenditures for Mia-

increase of 54%

.crease

•

plateau

security

amounted

and in which such Circular may legally be distributed.

New York.

new

,Jftor.'he year ending June 30, measures
the incoming AdministratiOn—that is only saying that

tional

The First Boston

a

about by monetizing 20

1950, the year preceding the opening of our
police action";-in

5j
I6,
war,
a

on

both wholesale pricesretail prices, due to the tre-

;

Budeet and Taxes
Budget

tional

may

and

complicated.

forth in the Circular.

in which such undersigned is qualified/to-act as

now

viewpoint.

Korea,

Copies of the Circular

are

prices,

Now, how about the long-term (mendous increase in the quantity
This is a little more of purchasing media, brought

agreed, subject to certain

unsubscribed shares and, both

during and following the subscription period,

We

cancellations; 0f,

cutbacks, and stretch-outs.,

conditions,

insurance.

at

Chicago

San Francisco

were
in for a deficit of ap^,: tract?. That leaves only $2.3 bil- ager of the Trading Department
proximately $10.3 billion in this lion in this item to play around of the California Bank,

we

current fiscal year.
:

it

was

stated

In December,

that

the

deficit

With." I point this out to indicate
the problems -ipvolved in cutting

Donald

H.

Norwood

been added to the firm's

has

also

staff.

Volume 177

Number 5192

;

.

The Commercial and Financial Chronicle

.

(587)

bility,

Another Florida Land Boom!
By ROGER W. BABSON

however,

view
to

t

applies

also

to

such

other

many

States. Therefore, in
its comparable closeness

of

the

big

industrial

should

of

centers

another Florida land boom

sees

making,
and gives advice to prospective
purchasers of Florida real
estate. Says Florida has a good
future, but this does not mean
small homes in Florida

or elsewhere are a
"good speculation."
Says best buy is vacant land, located where some day it may

be needed for
There appears to be the
of

another leal

in

Florida, although I cannot be¬

lieve

it

will

boom

estate

into

run

parking

making
here

such

any

space.

in

pened

the

last

boom.

This

generation, however, 'is
now getting ready to
try its luck
at investing in Florida.
younger

that

homes ' in

smaif

elsewhere

are

Florida

good

a

or

of

"specula¬

is

money

com¬

ing here—also
from

money

buying
state.

land

which

their

in

Second

they could

■

home

own

buy

—

When

do. well

anywhere; while

vacant

store,

and

in

rent

or

has

Roger W. Babson

a

every

tion.

that those

last

who lost money in the

Florida

caught
who

boom,

again;

but

will

not

farming be

get

few

were

40,

then too young to know what hap-*

states

applies

to

equal Florida

can

There

is

small home in

for

possibility of discovering oil in
part

any

Florida—this

of

possi-

chain

a

for

Native

It

a

an

I

parking

bought

it;

my

against

.hedge

to

easy

Such

sell.

Floridians

future

demand

would

U. S.

be

will

be

day

some

grow¬

ANGELES,

M.

should

of Lester, Ryons &

inflation,

and

number

of

With Daniel Reeves Co.1

has

ated

Calif.—Harris

joined

the

staff

398

with

Daniel

South

bers

HILLS,

Calif.—

Gaspich has become affili¬

the

of

Reeves

Beverly
New

Drive,

York

and

i

York

be

Richards & Co., and Gross, Rogers

and Los

Angeles Stock Ex¬

May 8, 1953.

Dinner tickets will be $15

cluded, and dress
(F.

S.

Moseley

usual and

&

Co.)

excellent

plete sellout.

usual

as

will

Identify ing Statement is not an offer to sell these securities. They are subject to. the registration and prospectus
'requirements of the Federal Securities Act. Information about the issuer, the securities, and the circumstances
of the offering is contained in the prospectus which must be given to the buyer and may be obtained
-1
'v
'
from such of the several Underwriters as are registered dealers in securities in this State.
■

•

Salvatore

NEW ISSUE

February 4, 1953

Committee

has

Rappa's

some

a

un¬

com-

$25,000,000

-

The Committee therefore suggests immediate dinner;
so

that the best interests of all may

Marks

&

are

Co.

Commercial Credit Company

■

,

Reservations

M.

Laurence

informal.

Arrangements

served.
Dinner

Friday evening,
all taxes in¬

per person,

plans for this dinner and anticipates

and hotel reservations be made

be

be

on

in

charge of Charles M. Zirigraf,
Hotel Reservations, Daniel D. Mc-"<

Carthy, Union Securities Corp.

; ■•••;
successful,
and this year this Committee under the Chairmanship of Soron
D. Neilsen, New York Hanseatic Corp., anticipates a bigger and

/

.

,

.

354% Junior Subordinated Notes due 1973

The Souvenir Journal the last two years was very

(Convertible into Common Stock for

better Journal and since the

Gratuity Fund is the real beneficiary
the Committee will appreciate it if the membership will give it all
the help they can.
Security Traders Association of New York

ing League Standing

as

Jan. 29, 1953 is

(STANY)

Corby

Hunter

right
Burian

Company and its sub¬
primarily specialized forms of financing
and insurance, including instalment and accounts
receivable financing and factoring; fire, theft and
credit insurance; and certain manufacturing opera¬
tions. The proceeds of this new issue will be used to
increase or maintain working capital.,

14';.;

____

L____-

lO1/^
•

i

10

—

A

(Capt.), Klein, Weissman, Sullivan, Murphy, Sea_______

_____

(Capt.), G. Montanye, Voccoli, Siegel, Reid

9

Donadio (Capt.), Demaye, Whiting, O'Connor, Rappa, Seijas
Goodman (Capt.), Smith, Valentine, Meyer, Farrel, Brown_

9

Mewing (Capt.), Bradley, Weseman, Hunt, Gronick, Huff
Bean (Capt.), Frankel, Strauss, Nieman, Bass, Krassowich
Serlen (Capt.), Gersten, Krumholz,
Rogers, Gold
Growney (Capt.), Craig, Fredericks, Bies, McGovern

Stock

through January 31,1958 at $42 per share and
February 1 through each January 31
thereafter through January 31, 1963, at the greater
of $46 per share or the book value per share on the
June 30 preceding such February 1, in each case
subject to adjustment under certain conditions.
from

each

«

The Notes will be Redeemable in whole

.Sinking Fund will provide for the retirement

by each January 15, beginning January 15, 1964, at
100% ot their principal, amount plus accrued inter¬
est, of 5% of the principal amount of the Notes out¬
standing on February 1, 1963, aggregating 50% of
such amount prior to maturity;

9

—

,

The Notes will be Convertible into Common

The Business of the

sidiaries is

Points

(Capt.), Ghegan, Jacobs, Gannon, Cohen
Meyer (Capt.), Kaiser, Swenson, Frankel, Wechsler, Barker
Leone
(Capt.), Greenberg, Tisch, Werkmeister, Leinhard,

(

from date of issue)

-

Bowl¬

Team:

Krisam

i

ten years

follows:

as

'

J

or

in

time at the option of the Company, at
102% through January 31,1954 decreasing l/2 of 1%
February 1, 1955 and 1956 and Fk of 1% each Febru¬
ary 1 thereafter to 100% on or after February 1,
1963, plus accrued interest.

part at any

5

Murphy

(Capt.),

Manson,

Gavin

D.

Montanye,

O'Mara,

7

41/2
4

4

Price 100%

Pollack,
4

__________

—

.

7

plus accrued interest from February 1, 1953
Point

200

Club

Sal Rappa

Point Club

5

220
209

George Leone
Cy Bies

Will Krisam

___209

Richy Goodman _____201

Ui

L

•*.

*

The First Boston

*"

»*

BOND TRADERS CLUB OF CHICAGO
At

the

winter

annual

dinner

Chicago the following awards
Tournament:
*

First

of

were

'

-

of

the

Bond

Traders

Club

Goldman, Sachs & Co.

made for scores in the Bowling
i. •

.

.

'

■

,

;V

Stone & Webster Securities Corporation

of

BIyth & Co., Inc.

'

Harriman

Eastman, Dillon & Co.

Michigan

Merrill

Lynch, Pierce, Fenner & Beane

Smith, Barney & Co*

*

Salomon Bros. & Hutzler

Union Securities Corporation

White, Weld & Co.

J Individual awards were made to Robert Erb; Green, Erb &

Gov, Cleveland for individual high series (576): to Frederick Cook,
H.'M. Byllesby & Company, Inc., individual high game (201); arid
Milton J..Isaacs, .Straus, Blosser & McDowell, individual; high
series "Net" ,(588).

-

.

/

- ■

.'

V v.Richard -A. Wernecke, Paul
the Bowling Committee.
.




-.7
.....
'r
yV
H.: Davis & Go.^ was Chairman;of
-».-• "J y
.

Ripley & Co.

Incorporated

Corporation Cup to winning. team -was
won
by a Chicago group consisting of Lawrence Marf,. Ames,
Emerich & Co., Carl Hartwig, Link, Gorman, Peck & Co., David
Burke,-; Blunt Ellis & Simmons, Donald Muller, Harris, .Upham &
Co, and Walter Strait, Swift, Henke & Co.
,!'
v.
; / >
.

Kidder, Peabody & Co.

Corporation

-■

■v

<

/

'

"

Please send

me a

copy

-

of the

prospectus

3K% Junior Subordinated Notes
Commercial Credit

*
\

•

Company.,

relating

to

due 1973 of

Name
Address.

y.

Mr.

formerly with Hill

& Co.

changes.

for

was

Exchanges.

The 17th Annual Dinner of the Security Traders Association of

New York will be held at the Waldorf Astoria

Los

Gaspich

Stock

•

.

Co.,

mem¬

Angeles

y

SECURITY TRADERS ASSOCIATION OF NEW YORK

&

Co., 623 South

This

'•

a

years.

Notes

NSTA

of

manager

Municipal Bond Depart¬
Devlin has been asso¬

Hope Street, members of the New

good

demands

appointed

Mr.

Anton

(Special to The Financial Chronicle)

Melasky

Exchange, an¬
A.
Devlin

William

ciated with Reynolds & Co. for

so

Lester, Ryons Adds
LOS

Devlin

(Special to The Financial Chronicle)

should

a

Stock

that

been

BEVERLY

land

be

York

ment.

space.

home

life,

has

for

needed

a

as

a

New

the firm's

parking

average,

The

this

opinion, is vacant land located

the

but

to

A.

Reynolds & Co., 120 Broadway,
New York .City, members of the

State in the Union, includ¬
ing the community where you are
reading this column. Hence, I say
that the "best buy" in every com¬
munity anywhere, in my humble

afford.

could

blind

William

will

nounce,

much land
My building
would depreciate from the day I
as

lengthen

a

near

ing community, with

appreciate.

^

it is

sure

My first purchase

also

fast.

every

What I Would Buy

very

sug¬

you see

it.

buy

sometime

motel.

a

a

Reynolds Appoints
Devlin Mun. Mgr.

parking space. Furthermore,
this applies to the old-timers of

Experiment Station.

Future

Southwest,

climate.

winter

a
a

Good

exception of the Paci¬

fic Coast and the

ones,

younger

around

now

are

With the

say

a

is

for

also

it

genera¬

They

for

are

This

come

Has

a

factory, or filling station,
a
church, which land can

needed

anywhere.

chase; that is, take time to think
things over.

or

bought cheap,

or

case

Florida

of

growing

motoring about, if
land
adjoining

be

—

bcom, differ¬
ing in "size,"

is

be

they cannot sell raising fruit, or raising cattle, or
California.
it. Third
buy something which raising chickens. I have seen more
The bankers they
have first seen; then wait money lost in farming than even
here say that until they get back North again in the stock market—and this is
a
Florida before
making the actual pur¬ saying much! If you buy land for

Texas

homes

however,
mile

here

But

Florida

even

or

novice at farming will lose money

something
themselves

use

could

farmland.

gestion.

Already

as

It,
a

store, church and post of¬
fice, and in a good neighborhood.

tion." As to agricultural land. I
middle-aged people
am not an expert judge; but I be¬
did
the
one
from
the
North are
asking me
lieve that every State has its ad¬
which started what to buy.
My first answer is
28
and
disadvantages for
years
ago. to buy for cash only—not on mort¬ vantages
Considerable
gage—/and to use the same com¬ farming. An experienced and
Canadian mon sdnse as they would use when hard-working farmer with capital

'proportions

within

England, New York, Pennsylania, Ohio, Illinois and certain
"But what next should I
buy?"
other States', Florida is especially you ask.
Well, I would buy no
well.located for those retiring on
acreage[ just because it seems
pensions. Furthermore,', the good "cheap" "at $10 an
acre, compared
roads, low living costs and tax with $100 per acre in your own
advantages make Florida, attrac¬ State!
There is an awful lot of
tive. Hence, I - believe there will Florida
land good only for hold¬
be i much
activity here, in the ing the
[world together! .You are
building of small homes.
probably not experienced enough
This, however," does not .'mean to speculate in groves, pasturage

the

in

small

increase.

be

grocery

New

Mr. Babson

well-located,

should

11

Financial Chronicle

The Commercial and
-

'

•

'

T

'••••'

*
.

x

"

By ARNO II. JOHNSON*

Vice-President and Director of Research
J. Walter Thompson Company, New York

;

behind our productive ability in our present
living standards, prominent research specialist lists as hidden
pressures for
expansion: (1) high discretionary spending
power of people; (2) favorable age make-up of population;
(3) better educated populace; (4) need of less obsolete and
better dwellings; (5) increasing use and demand for motor
vehicles, and (6) shift of farm population to urban areas.
Says conflict of advancing standard of living with defense
needs is relatively small and a 10% increase in living standards
could offset defense slump.

Asserting

1953

we

be

can

of oppor-

year

a

tunity for expansion in our living
standards.
Continuation of our

trends would

production

present
*

•

make possible
a
1 0 %
in-

,

this

crease

in

year

10%
greater sales
of
goods and
services
to
living

.

defense

needs

the

at

same

time.

r;

But

1

w

e

-for0wlrd'lorthe:
t ii 1'

...

that exists for

nid

an

American stand-

the

living in

ol

lfeast one-third

at

have.

now

rtrpatAr

near

future

better than

we

productive

In fact, our

.r

forts

production, and increased markets
result from the basic combination

people,, purchasing power, and

of

desire.

And

far

government rather than
their own initiative and in¬
genuity, which should be directed

hicles
"

upon

some

are

of the facts to

consider:

(i)

Between the

survived

a

war

peak of

low of 1947

cut in defense ex-

penditures the equal of $125 bilijon jn present prices—six times
as great as the $20 billion cut we
may now face. Yet our real standard 0f living advanced by 38%
over our prewar highest
level of
i94o.

now a

higher based on our proven

.

.

v

tunities

for

...

still

a

living

of

standard

productive ability.

1944 ancj the postwar
we

standard of living one flation, has obscured

right
third

based

quate

(6)

ade¬

lesser

the

1940.

farm popula¬

our

drop of 7*4 mil¬

a

net shift

a

to

mil-ion

14

non-

population adding to the
for a high level of non-

farm
need

and

production

agricultural

employment.
Conflict of Advancing Standard of

Living

With

Defense

Needs Is

Relatively Small

our

,

enough to carry on a defense
level of $40 billion and have goods
and services enough for a third
duce

higher consumer standard of liv¬
ing. Yet our tools of. production

An

analysis

where there

cations

program?! Included

Production

There

was

any

this

in

se¬

military

the

10%

grouping of such
durable ;goods 1 as
refrigerators,
washing / machines, sewing ma¬
chines, electrical appliances,
radios,, TV sets and automobiles.
■*"' An over-all increase of 10% in
the" entire

was

powerful,

six

are

with

conflict

rious

of Living and

Standard

billion fell in classifi¬

of the $208

Hidden Pressures for Expansion

in

total consumer

of

expenditures for goods and serv¬
ices in 1951 showed that only 10%

but

how"\have, ad¬ largely hidden, internal pressures

."know

about

of

roads,

parking
not

were

for

since 1940 and

lion

we

our

in

Change

tion—with

capita

and

that

even

putting

number of vehicles in

The
produced no more per proven productive ability.
level of prosperity
may
appear
than we proved we could
high, but it is not nearly as high
produce nine, years ago,- during
the 1944 war peak, we could pro¬ as it should be.
If

motor

on

and

garages,

facilities

real

on

1940

pressure

streets,

the oppor¬
higher

in

than

i added

prices

time.

Here

of.
'

-

vehicles—with 72% more ve¬

instead toward increasing produc¬

In

(4)

a

pressure

in number of

Change

upon

ance

the

than

needs

(5)

that

changed

so

of obsolescence can be
important to new hous¬

additional population.

business leaders
increasingly into reli¬

modern

education, *and
have

more

ing

even, our

have fallen

conveniences.

comes,

needs

pas-?

few home com¬
Tastes, in¬

and

cars

or

pressure

employment.

full

prosperity and

..

Purchasing power is created by
,

expansion building up in our
beyond 1944.
real produc¬ economy. In gome the pressure is
nearing explosive strength.
All
tivity
per
capita beyond that
needed to support even a third, will have a strong influence dur¬ production of civilian goods and
than olfset as much as a $20 bil~ higher consumption. * \
services in 1953,/therefore, could
,<, .? * ing the next five years, both cul¬
Iion cut in defense
turally and spiritually as well as be accomplished without serious
(6) The one-third higher stand-;
The American standard of hvinterference with defense.
Such
in' the material sense.
ard of living which now is possi¬
ing in 1952 was at a level of $215
an increase could be an important,
These hidden pressures are:
ble would so broaden the base for
billion annually—a 10% increase taxes that there could be a 25%
step in? covering thetransition
(1) Change in the discretionary
would absorb an additional $21
from peak defense levels toward
cut in tax rates without lowering
spending power of the mass
the goal of a third better standard
billion of production. The maxi- the
of
the pepulation-r-now
present high level of revenue
4 yz
of living.
But it would require
for government and defense.;
times greater than in 1940.

(2) Now- in 1953' only a 10%

increase in consumer purchases of
.-Lnnrfiinitv goods and -services would more

Johnson

H.

Arno

same

—

.consumers—
while meeting

senger

1953,
with consumer
tion at lower costs and toward
declining, slightly, the
American people would have 78% developing and increasing markets
for their production. This has led
more real purchasing power with
which to buy physical units of to fear of depression and unem¬
goods and services than they had ployment if these government ex¬
to consume have changed so much in the best prewar year 1940. This penditures for defense are cut
back.
from prewar standards that we is after taking into account the in¬
could have an expanding prosper- creased personal taxes and after
Furthermore, the present high
ity for some years to come, start- correction for inflation in prices level of income in the United
ing in 1953—and that we can over prewar levels.
States, resulting from war and de¬
fense stimulation, along with in¬
maintain a strong defense at the
(5) We should, and could, have

our

standard of

1940.)

prewar

when there were

less than,. a quarter as many

,

$20- billion in personal savings. -^and war—accompanied by in¬
(Over 5 times the level of per¬ creasing controls and restrictions
sonal
savings of . $3.7 billion in on private initiative can we have

are

Thursday, February 5, 1953

.

school graduates,

disposable personal income after government spending were the
V', V
taxes—enough to increase con¬ assured way to prosperity.
.Through years of insidious
sumption: expenditures by.. 10%
propaganda we have been taught
over the 1952 level of $215 billion
to believe that only through ex¬
up to $235 billion and still allow
a
continued high level of over panding government expenditures

Promoting Prosperity

Factors

,

.

-

vanced

far

make

to

for

enough

possible a

expenditures.

.

.

ability is such that we should be
at that third higher level of living
right

now

>

Sffi r r^e
base

of;

a

then

and

substantial

cuts

in

de-

.0,J*
' "
*
penditures some time in 1953 or
The fear of recession in 1953,
1954. lit is said that the reduction therefore, seems exaggerated.
A
will bring on a period of depress relatively small increase in consion and unemployment.sumer purchases could more than
tense

government

other

or

ex-

Z*S22«!*.
government expenditures,^ the
v 1 of? purchasing power in the

government expenditures could start a downward cycle, largely psychological^.
oDoortunitv

the

But

exists

hands of consumers is such, that
a substantial increasedmpurchases
could occur offering real opportunitles for aggressive marketing,
(3) There is an opportunity for

for

just the opposite-for a rapid expansion in our standard of living,
There is evidence that both our
productive ability and our ability
'

f

*Part -of

the

before

by Mr. Johnson
Board of Trade
D.
C.,
JanWashington,

Conference,

27,i

uary

address

an

Washmyton

1953.

in 1953 to be at
level in history,
present production trends point
to a 1953 level of $255 billion of
purchasing

our

other words, we are behind
productive ability in our pres¬

ent

living standards. After we pass

In

spending

Discretionary

power

the highest

the;peak of defense needs in 1953
we.'will have the opportunity to
start catching up. This can mean
a

strong and expanding economy

at home and a

growing market to

aid other free nations in trade.

It

supply the

determine

will

our

economic fu¬

ture.

markets

creased

officials

government

in

the

This huge

increase

easily

will

soon

facilities

and

as

stifle production.
in War and Defense Our ;

Even

The

.

<

to

in

(Philadelphia Plan)

1940-and

tween

made

ductivity

1952

shows

in

increase

miraculous

our

rapid increase in the pro¬

portion of our population with a
high school or better education is
accelerating the pressure for
higher standards of living.

.

/ r

analysis of what happened
the real standard of living be¬

An

mo.

Equipment Trust, Series
Equipment Trust Certificates

than

Has

Increased.

.

80%

high school graduates in

adult population

Living

of

Standard

people —with

our

more

en¬

an

..

off

more

less painfully by

Change in the education level

Railway

,;

in tax rates which tend to

crease

juvenile delinquency. It
requirements,
consumption, and many

as

phases of family living.
(3)

,

over-all increase in
production and consumption,
thereby broadening the base for
taxes rather than by further in¬

affect housing

food

obtained

be

can

and

couraging

cause

teachers

.

penditures that are not absolutely
essential in building our defense.
On the revenue side, however, an

against inadequate

outcry

source

a

the

to

profits which
of some $27 billion,

corporate

Every effort, of course, should:
be made to curtail Federal ex¬

increase in the num¬

children

of

of

of tax revenue in 1951.

than in 1940.

our

i

was

Change

■ft
-v.

'

level

defense

substantially

add

would

in the age make-up
of our population—with over
65% more children under 5

(2)

past seem to have based their pro¬
jections of the future on the rate
of
government spending — as if

$3,600,000

3%

items not in conflict with

produc¬

our

of govern¬
increase of

personal consumption of.

in

10%

prewar.

for

*

standpoint

a

ment tax revenue, an

tion.

Unfortunately many economists
and

pared with 35%

will

|

From

As the
depends largely on, the
CON¬ population learns how to use this
SUMER—the level of living he new purchasing power the stand¬
chooses and is- willing to work for ard of living can expand into in¬

li'j.

i

to

ing, and shelter) is 4y2 times as
great -as in 1940 and represents
53% of income after taxes com¬

well

Southern

needed

the demand.-

1940 per capita level
food, cloth¬

school

'

ing and selling pressure to

of such necessities as

public

1

be

would

what

above

ber

'!

power

(the amount of income over and

.

.

in

such-cuts

advances in advertis¬
create

courageous

bUhon^fmrn Th^pealf reached*.1
in
hmioiri. trom tne pea reached

probable slackening off

that
pro¬

possible an in¬
of living even

creasing standard

during all-out war as well as dur-:
ing our present defense economy.
(Table I)

To

mature

To be

$120,000 semi-annually from August 1, 1953 to February 1,

1968, inclusive

(4)

f

*671%

to

yield 2.20%

to

obsolescence and
dwellings — with

bare

now

over

20

that

the
when

hardly.. covered

necessities

of

living,

only 7% of our adults were high
Issuance and sale

\

When all

figures in dollars are

of these Certificates are-subject to authorization by the Interstate Commerce Commission.

1951 prices in order

to

converted

years

built when families had in¬

comes

3.10%, according to maturity

our

old
and 50% over 30 years old.
The majority of our dwellings

guaranteed unconditionally as to. payment of the par value and dividends by endorsement
by Southern Railway Company.

Priced

i

of

age

were

-

In

Change

,

price fluctuation

to

remove

to

indicate relative

ume

it

can

and
physical vol¬

be shown that

we suc¬

shock ' of
dropping defense production from
the war peak in 1944 and had a
cessfully

absorbed

the

TABLE I

The OfferingCircular may be obtained-in any Statein which this announcement as circulatedfrom only
such of the undersigned and other dealers as may lawfully offer-these securities in such State,.
•

Production and Consumption—In 1951 Prices (Billions)
Defense EconPrewar

Gross

HALSEY, STUART A CO. Inc.

-

=

R: W. PR ESS PRICH &. CO.

..."

FREEMAN & COMPANY

ft

GREGORY & SON

THE ILLINOIS COMPANY

■

■'

'■

incorpoitatv* '; *

,

$316.3

$272.3

$337.3

*

139.3

14.1

50.0

'

-25.2

15.2

20.8

28.1

Government Expense
:

Nondurable Goods

-

I
!

Jap uary 30, 1953.
V

''

'

15.7

______




55.4

41.9

CapitaV---.

.

,

25.1

( 2d.

96.4

-

50.6

132.1

138*

$1,490.

90

:

.

107.2
57.6
144.1

$1,890

-

Q. Rate)

*c47.3vj

189.9

.-9.4

.

••-."-•-r'TLS

156*

r

80.3

Population (millions)
G,NP. Per.

29.6
137.9

^

Durable Goods.

Services
h i

'

$197.4

Product

Personal Consumption
*

1952

1947

4.7

National

Private Investment

I <•:

onay

1944

Defense

Other

Postwar Low

War Peak

19441

V

211.9
-

*

f.

25.2

}

118.0
68.7
156.7

$2,150

-

Volume 177

Number 5192

Commercial and FinanciahChronicle

J The

..

(589)- 13

substantial;: advance in the stand--vy/>vr; acrd of
living.The cutobackin de¬
fense
I

expenditures

1947

the

was

billion
many

at

from

prices

defense

new

lion.

than

A

"

1

„

>

„

of

-

require

only

goods

;

Reierson, Vice-President in*
and Business- Research of Bankers Trust

proved
1944 would

rate

wartime

$390 billion—enough for
expansion of civilian
services

and

present levels

ment

purchases

Charge of Economics

Company; New York,

Demands

for

investment funds

of

and

in¬

private

associations.

show

Economics and

that

time

since

1952

terest

The

Re¬

for defense is used

reflection

search

De¬

.

,

ment

drop

of

defense

partment

o

defense

production.

of

living of

enough to

only

maintain

production

at

the

standard

our

10%

A

would

be

over-all

our

level

antici¬

in

the

a

that

$20 billion

billion

$40

from peak

to

annually

for

some

capita

per

creased

from

$1,490

in

in¬

1940

to

$2,290

annual rate

tional Product divided by popula¬

are

expected

to

reach

They

peak

a

$60 billion in 1953. Then

of

cut of

a

$20 billion is anticipated, but

some

few believe that defense expendi¬
tures

lion

be

can

lower than $40 bil¬

annually for

some

come.

,

Our
will

to

years

productive

be

such

peak defense

the

$60 billion

be accomplished

and still allow for enough

civilian

A

1944

(Real

similar

ductivity

for

per

our

Gross

National

billion

in

dollars,

capita pro¬
170,> million

Product
in

1957

mean

of

terms

could

and

Na¬

Gross

population in 1957 could

a

$390.0

of

1951

provide

the

purchasing power for a standard
living approximately one-third
higher than at present. (Table III)

of

Company

o f

At
a

4

time, the sup¬
ply of savings,
Dr.

last

and

Y

that
year,
con-

may

ceivably

b

an

increase

third in the standard
1957

should

of

considered

be

by
a

forces

not

are

created!

tion

were

.

.

„

,

This conclusion is reached

in

a

study entitled "Investment Funds
—

Supply

far less

in major

adequate.

ing

TABLE II

Demand"

and

(Billions)

1952

■

-

Defense

2nd Quarter
t

Peak

Slowdown

Rate

1953

1954

•«

Gross National Product
Defense

Other

_

$337.3

♦Down

tUp

$355.0

60.0

*40.0

30.0

30.0

47.3

;

50.0

.

H

211.9

Consumption

$20 billion.

$355.0

28.1

Expense

Private Investment
Personal

Defense '

50.0

_

Government

50.0

215.0

t235.0

Prices

Gross National Product

be

no

1957

Expense

Investment

Personal

will

the

local

in

as

The

that

will

governments

increase

their net indebtedness

by a larger
amount
than
in
1952, but that
the net rise in corporate new issues

real

and

ward

may

estate

"Furthermore,

mortgage

ment

1

The

of

major

of

Governments

savings

in

term

institutions

will again accumulate a large vol-

higher.

fSame

investment

as

in

1914

1953,

In

accord-

1952,

the

"increase

tinguished

ac-

points
demand

Service Medal for his

Commander and

was

awarded the

Navy Cross,
#

^

Joins Staff of Davies

appear * un-

the

membership
1946 he was

work in World War II, He served
in World War I as a navy pilot,
obtaining the rank of Lieutenant

invest-

study

in

his

in June,

(Special to The Financial Chronicle)

•

FRESNO, Calif.—Robert L. Mc-

Kee has been added

out
fcr

to

the

f$2,290

war

funds

was

Street.

accom-

peak.

,800,000

Bond Club of

Chicago Annual Meeting

(First Installment of

CHICAGO, 111.—The 42nd Annual Meeting of The Bond Club
will be held at the Mid-Day Club on Wednesday,
Feb. 11, 1953.

of

•

at 6:15 p.m., followed

by dinner at

%%

"V f

t

•

.V
'%

3%

f*

To

m

mature ann

<

(Philadelphia Plan)

.

ually $320,000

on

,

V

*

•

Priced

to

ft

.

•

v'

',7J*

-:T

each March 1, 1954'to 196S,/inclusive
i

...

To be guaranteed

.1, V

Equipment Trust Certificates
.

-

■)

Equipment Trust, Series AA

7:15 p.m.

asu-i

proposed issue of $9,030,000)

Pennsylvania Railroad

Chicago

Cocktails will be served

a

-

' '
f

.

*'
g

'

'
0

»,

'I',
>

f ¥

*'

«

J

"j

.

*

'"5

*

''

'*<

' * \

'*

K '

v

f

1
'*
;•

■

/*

unconditionally as to payment of principal and dividends by endorsement by
The Pennsylvania Railroad Company

Yield 2.35% to 3.15%,

according

maturity

to

Issuance and sale
ram

The
i—

mu.ianey

Robert

B.

Whittaker

Paul

W.

j'airchiid

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

such

The Nominating
Committee, Edward C. George, Harriman
Ripley & Co., Inc., Chairman; Ralph Chapman, Farwell, Chapman
& Co., and Leo J.
Doyle, Doyle, O'Connor & Co., has proposed the
following Officers and Directors for the coming year:
President: Paul L.

Mullaney, Mullaney, Wells & Company.
Secretary: Robert B. Whittaker, Lee Higginson Corporation.
Treasurer: Paul W. Fairchild, First of Boston
Corporation.

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

GREGORY &, SON

L CO.

BAXTER, WILLIAMS & CO.

IRA HAUPT &, CO.

HAYDEN, MILLER &, CO.

FREEMAN

&.

COMPANY

THE ILLINOIS COMPANY

incorporated

,

For

Directors, the above and: Andrew M. Baird, A. G. Becker
& Co., Incorporated;-John W.
Clarke, John W. Clarke & Co.;
Joseph E. Dempsey, Dempsey & Company; Robert A. Podesta,
Cruttenden & Comoany; Nelson M. Utley, Halsey, Stuart & Co.
Inc.; Thompson M. Wakeley, A. C. Allyn & Company.




WM. E. POLLOCK

February 4, 1953

.

& CO., INC.

*

*

,

-

.

,

•

staff

of Davies & Co., 808 North Fulton

170.0

$2,190

in

of the arihy air program.

*280.0

$2,150

Population (millions)
Production Per Capita
♦One-third

also includes estimates of the flow

savings

J

-

Assist¬

as

tary of Defense a year later,
Mr.
Lovett
holds
the
Pis-

•

an

of

Lovett

flrm in April, 1949 but was called
to Washington a third time, in
September, 1950 to become Deputy
Secretary of Defense, and succeeded General Marshall as Secre-

likely."

ing to Dr. Reierson, whose study

ume

rates

A.

"

recalled to government servicp in
May,
to become Under Secre*ary
State. He returned to the

prospect, declines in longinterest

-.

Secretary of War fo^ Aar/ in

the firm

in

made "as

as

Robert
•

After ; resuming

the Treasury funding program

are

30.0
40.0

ant

charge

business

and

serv¬

During

World War II he served

tivity remain high, and issues of
long-term obligations as a part

40.0

50.0

ice.

bond prices,

long

so

spending

30.0

162.0

ernment

of long-term in-

adjustment in

part
past 12

in gov¬

years

Dr.

rates."
He cautions, howthat credit and debt 4management policies are in a state of
flux and could operate, at least
during part of the year, in the
direction of some moderate down-

and

the

of

1953.

are

Lovett

spent the

greater

terest

esti-

state

1952.

indicate

28.1

215.0

in

prior to

has

infla-

of

firm

many

World War II,

that "there

resurgence

course

$390.0

47.3

study,

assumes

partner
the

Mr.

ever,

same

mates

affect the

60.0

156.7

his

on

1, 1953.

years

an effort to appraise the
trends of the economic forces that

$355.0

211.9

Consumption

For

Janu¬

rejoin

for

The Bank's economist observes

50.0

Government

A

Foreseen

that these estimates

$337.3

Defense

Private

Opportunity

March

Rates

sectors of the economy.

Buyers

1953

partner

major

Treasury Refunding to Affect

Savings Institutions to Become

Defense Peak

the

resigned
on

City, as
general

a

A

part of

(Billions)

1952

gives

tionary pressures"

m

(2nd Qtr. Rate)

Other

will

rise only slightly from
levels, and that the new
financing
requirements
of
the
Treasury in 1953 will be about

Opportunity for Production and Consumption
1951

1953.

Reierson also

be somewhat less than
in the previous year.
TABLE

infor-

available.

assumes that ecoactivity, including buildand plant in-

of

and

state

New

construction

half

during

York

,

inventory accumulation which
began in the fall of 1952 will continue at Jeast through the first

assumed that Federal spend-

debt

10%.

In

ing,

current

in 1951 Prices

be

may

study

nomic

•!*. J

Wall

and conclusions.

tools of produc¬

our

It is

Production and Consumption

becomes

59

Street,

the

.

„

just isgoods and services for further in¬ minimum opportunity because it sued by* the Economics Departwould require only reaching the ment of the Bank. The study in¬
creases in personal consumption—
level actually reached per capita cludes statistical data estimating
providing
the
demand
can
be in
the demand for' investment funds
1944
when

Co.,

as

de-

Dr. Reierson contends.

one-

of living

are

vestment, will be well maintained
for the year as a whole and that

,

and

well

likely to operate in the direction
of a persistent upward trend in
long-term interest rates in 1953,"

.

defense

as

They

complete

more

comment

The

"economic

'

,

,.

will

in

productivity neces¬
to provide for $40 billion of Total Borrowing to Remain High

sary

II

Active Business

suggests^

that

War

assumptions

L. Reierson

j

Rejoin

20,

e

slightly larger.
This

as

mation

brief

•

^he private
banking firm of Brown Brothers
Harriman &

presented in
showing data

tentative, and

as

revised

.

Secretary of Defense

as

in

are

tables

World

scribed

likely

to match
of

since

of

projections for 1953.

Reierson

holds is

recorded

was

estimates

series

a

..

.

ary

The

mk

,

Robert A. Lovett, who

1952.

New York.

The level of

ability in 1953

that
can

tion).

in

productivity

second quarter of 1952 were at the
of $50.0 billion.

governments

same

"

Brown Harriman

securities, on balance.
A
significant drop in their sales of

f

Bankers Trust

the

come.,

In terms of constant 1951 dollars
our

expenditures

as

estimates

levels but cannot safely go below

years

(Table II).

Defense

drop

may

pated during our peak of defense
effort

current

.

evident

were

Lovett to

stitutional investors will probably
become small buyers of govern¬

in

.

rates;-except in

.

figures

Business

change, therefore, in

,

municipal obligations . where spec
factors were operating

1953/for the first
1946, the major in¬

vestment. The figure of $40 billion

in

.

,

in

personal consumption
expenditures to offset a $20 billion

increase

L

of' approxistability prevailed during
in the level of long-term in-

mate

ance

loan

„

the- year, -conditions

savings through banks, insurcompanies and savings and

by

even

m

fluctuations

foresees stable longderm interest rates in
1953, with demand
for investment funds matching
supply of new securities.

production

l4

by i large increaseUittKe.
flow x>f savings channeled through;;
the major savings institutions. As; /:
aconsequence,
although < ilpinor ^

Stability in Long-Term Rates forecast

Dr. Roy L.

one-third in 1953 will be no larger than in
after $40 1952,
according to Dr. Roy L.
billion annually for defense, and Reierson,
Vice-President
in
ample allowance for other govern¬ charge of the

10%

a

v

greater

no

gross national

a

over

over

Slump
would

capita

per

in

1957

continued

10% Increase In Standard of

It

possible
mean

Living Could Offset Defense

;

the

in

>

,

\ panied

.

,

peak of $60 bil¬
?

,

off■

With A Strong Defense

-

of depression^ if

warn

Standard

;

Production

yet

—

Higher

Living Possible by 1957 Along

to

only $20 billion is to be cut from
our

V

equivalent of $125

present

now

1944

One-fhirf
•

McMASTER HUTCHINSON

■

& CO.

,

.

'
••

Financial Chronicle

The Commercial and
A

.

1953

Thursday, February 5,

.

.

}

A

had, to move the ore 43
miles from the mine to the port
has

cilities

President, Republic Steel Corporation
huge expansion

on

fa-

built. The

been

our

furnaces.

With this behind us

the

of steel industry, Mr.
White says fantastic expenditures for new steel capacity arises
in large part from threat of government entry into business and
fear of nationalization. Says tremendous capacity expansion
involves raw material problems of staggering proportions and
reveals exploitation of new ore resources. Points out financing
difficulties and importance of satisfactory profit-margins to
attract private capital.

Commenting

also

have

operation is now functioning suecessfully. For inore than a year
Liberian ore has been brought to

By C. M. WHITE*
;

ever

of Monrovia. Dock and harbor

Has Its Neck Out
,

business to a degree that gives the there has been a 10 cent per ton
stockholders a pretty thin break, freight increase in ore.
.■.
Profits provide less than half the
We are striving mightily to semoney, Most 6teel companies have cure economies and productivity
borrowed . heavily to carry
on to offset these rises in costs and
their programs. Republic at the have had a considerable degree
present time has more than $170 of success. But on some products
million outstanding debt, most of and some finishes we eventually
which was used for expansion, will be forced to get some relief
some companies have issued addi- or eventually to discontinue some
tional stock, but the market is not products which would be unwise
favorable for this type of financ- on the basis of the national econing.. Republic common stock, for omy. Our industry has a long
example, has a conservative book history of pricing our products to
value of $68 per share, yet the encourage their use and I know
stock is selling at two-thirds of of no major producer who has
this figure on the market today, attempted any different course
Other major steel companies are even though the opportunities for
in the same boat. Why does the doing so have been frequent and

republic

little

this

railroad

first

The Steel Industry

Liberian

government, follow-

program

ing the example of certain other
small
states,
has
demanded
a

rather

greater share in the profits,
than the agreed upon

royalty per

ton.

Another large ore

discovery has

Labrador

in

made

been

the

to

east of Hudson

Bay. Republic has

approximately

a

est

one-fifth inter-

development.

this

in

investing public have such low
regard for the earnings outlook in

impressed

many

with

American

particularly

Steel

at¬

Our

o|

of

the

steel

industry, based

built,

the

the

sea-way

on

self-sustaining basis,

a

gentleman
C.

White

M.

and

many

01

ms

I

left high and

that during the

aware

profit has

years,

become

and

able to

are

problems
supportable.
Tnje

* fivp_vpar
Dart

co-

®

pvnansion
WA

JL;tp

pan

VpaW

deliberately

«soy';

meanirig-

:jpjj

in

fostered

i_,•

A._.

it

/Join*

hnw ;fhp

interesting

been

the
nf

and <*ninv fpmnn-

but the whole scheme is

h

mainr
Tn

mnct

relief* 'while

+

rv

y

ati

ti

amo

nff in five
r

granted
«ran+in^

nprpccitv

of

<hporv

'
been

of

fi-

our

become in-

can

h

we

f>prt;fiPotPK

.

ahead,

in the years
it consistently,

earn

ade-

earn an

profit

nancial

problem in this the event of war.
workers never was price-control,
country would have been insurThere has been a lot of work of course, but profit control.
mountable.
done also to exploit ;^:4ov^.>^^^record'wagq^i n cr« as e
So where do we find ourselves grade ores which lie within the granted
by the Wage Board
,

20

dirty
word. However, unless
Republic and all other major steel

.

who may have been

well

am

a

steel industry. The

wor¬

buyers

thy

bulk

jn the Great Lakes. I realize that

expropriation of our total physi-

all

kept the door
nearly closed
on many

believed, that

quate

$5.20 per ton. $3.54 of this represented earlier cost increases ■ to
which the industry was entitled
under the Gapehart amendment.
The remaining $1.6-3 per ton; the
only true price increase we got,
fell far short of what we needed.
Yet even this inadequate increase
aroused such indignation that the

proven—but

Lawrence sea-way

is not a universally
popular subject but as a matter
0f national security itJ must. be

in

cushas

our

tomers

already

past several years was a
cheaper price to
pay
than the

own

with

fairness to

been

their

to be at stake.

management

have

tons

until the, St.
is built it will
not be of maximum value to the

never

felt

they

million

400

staggering expenditure of its
money which has taken place

the

tempt to han¬
dle
our
dis¬
tribution

unless

personal security

Cleveland
area.

would

people

for

stand

the

in

here

the

something

is

This

fense.

and

where,

producers

As you steel-buyers know, we
were permitted at the end of July
to increase carbon
steel prices

.

.

past

answer.

an

desirable.

the steel industry? A little arithmetic on the recent wage settlement will provide part of the

365-

A

extravagant statement. miie railroad is now under contimes through the long period of There isn't the slightest question struction which will bring the ore
steel shortage by the considera- that
the emergency created by 0ut to the Gulf of St. Lawrence,
tion and courtesy we have re- Korea gave the socialistic plan- The rail-head on the gulf will be
ceived from
ners a golden opportunity to proalmost exactly as far from Ashceed
with
nationalization plans tabula, Ohio as in Duluth.
steel buyers
•
under the guise of national deThis deposit is very large—some
nearly every¬
been

have

I

^

.

dry by some other producer. But
there was little we could do about now?
It appears to me that, deit
We have had our frustrations
spite the current tight situation—
too, many of^them. Life has been which fs partly a hangover from
made no easier by certain assorted the strike—we will before too long

the borders of the United States, amounts in Republic to more than

In partnership with Armco, Re- $5.00 direct labor cost per ton of
public has begun the commercial shipments. Beyond this, based on

production of taconite in the upwith total capacity per Lake Superior region. Taco-

agencies helping us drive from the find ourselves
back seat. At long last, the end ol considerably in excess of current nite is extremely
some of these difficulties appears
needs, though some products may taining only 25 to
to be approaching.
•
remain tight for some time. While the existence of

past; experience, we can expect
other costs, including materials

flmorti7ation

is

£

whieh

hv

means

a

C«0vernment sXfirii

indusl

zes

Nowhere have!

seen

anv

^nfrlar wrHer evnlain that The
0°''u Apwn 1
nm^atelv eollect

hard rock conT and services purchased; to rise to ?nnrnY;matPiv tv>P came in taves
28% iron. While an extent which will mean" an
these huge de- additional $9.01 per ton. Ore has
ei.er d
is aepieuaieu
I say this because, unless I am the American economy will catch posits has been known for many already gone up 75 cents and coal over ±lve years> 20 years or 50
badly mistaken, the steel industry up with us, because it is growing years, it was long considered cpm-\45 cents, for example. In addition years.
V
its

has

out

neck

mile

a

the

on

at

tremendous

a

rate,

we

impossible, to

mercially

have

extract'—

building, the iron.
:
in three or four, years time,, steel
New methods of drilling; this J '!
proached the war in 1940 with capacity which should have been extremely hard material through
!•
32 million ingot tons of capacity, added
in a more orderly way the use of oxygen have been cteWe came out of the war with 92 through the entire decade of the vised.
These permit blastihg/ at
million tons. A year ago this had fifties. Those of us who have been reasonable cost. We now have a
reached 108 million tons. On New around a while can't forget that 300 thousand ton annual capacity

Luge expansion program in which
we have all been engaged. We ap-

Year's

overshot

the

by

mark

.

million

in only four peace-time years, out

tons, and before 1953 is over the
industry's capacity will be
121

of the 67 years for which records
exist, has the steel industry averaged 90% operations. AH four of

Day

had

we

118

million ingot tons.
This

is

the steel made

half

than

more

the

in

all

of

world.

Our

those

Maybe,

war.

been since the
some
optimists

have

years

as

-of Soviet Russia. If the old axiom

quite believe it.

is true that

are

wars

by the
supply of

won

side with the dominant
the

war

metal

fears

about

ture

war.

whether

need

we

the

outcome

The

big

The
new

of

no

fu-

a

is

could survive another

we

one.

exnendihire*

fantastic*

steel

for

capacity have not been

because

made

have

question

victory like the last

we

industry
is
managed by implusive and deckour

on

are

M

„

„

n.,

Such tremendous expansion as
have had in a short period of

we

raw

Dr. Jules I.

Bogen, Professor of Finance at N. Y. University,

despite spectacular increase in consumer borrowing, there

says,

has been

change in relation of debt to disposable national

no

After

preceding

years

Korea

we

it.

that

we

knew

would have to support

Threat
But

of

we

material prob-

While
While

will

we

ore

continue .to'

in

declining

high as 62% iron.

University,

structure today appears

get-?^1™cicn°Vfni°"rJ

volume

Steel

Nationalization

^ J®
terial

to

gram such as the world has

may

you

never

Pig

iron

a
comparable period o£
Why?. Because had we 'not

time.

tion

teli

in

seen

many years,

pro-

a

from

be appreciated

when

I

that 75% of the nation's
is

ore

still

than

being

produced

down

comes

f",

dispose of. Quite

completion.

They cannot

fough^The^ireauen^
„Avaey

the

lakes.

viewpoint, the home

lenders'

!e -US'
a pro-.

as

tended
most

-

•

q

+

y

.

$8 billion in home and con?
debt
since
the
end
of

couia
could

the

The

end

ree,.H

'only bl'natTonafization5^
oe nationalization of

only
entire

steel

industry.

Once

accomplished, the nationalization
Of
nublir
r»nmir»
of
public transnortalion
transportation, public
utilities, and many other
in-

bas'ie

wtTX°nU,ld haVe bee" e3Sy 3nd
g ca
eps.
s

I

am

♦From

n°t
an

trying

address

bv

to

shock

Mr

tore

whiu»

you
ho

the Purchasing Agents Association
Cleveland, Cleveland, o., Jan. is, 1953.




in

n.H
T g''eat inudUSjryT °per"
the years ahead. Impor-

,ee„

ating
t3nt

in

discoveries

h3ve

been

made

^

narut

and

development work is going
yctxtiy
forward in a number of localities if1
y
at

enormousVxpTnse °

RePuWi^.

terest in

has

a very

from

iioin
,1

*

..

,

I.

Jules

Dr.

Bogen

upon

of

'

1ftQ0

fhp

cfatprl

Rpoon

~

unSi?Pfa^^e na^ona^

consumer

to continue. But as the total

™LnfnS5
current pionts.

come,

which

was

he" mad'e"m'e're*lv to"offset'reDa"vmgnts.

oM

Qf

Mining Co.,
pro-

fine ore deposit in

small country on the west
coast of Africa. We have built the

1*5^

„

^ ^

spread over

reduced,

nat onal

standing little changed.

Chicago Analysts to Hear

cannot

come

though they

from
are

profits,

retained

even

in

the

^

^

amortization
a

rate on

has

been

longer period, liquid

asset holdings of

Where Will the Capital
Come From?
All of the capital of course,

the

CHICAGO, 111. —W. A. Roberts
of

Allis-Chalmers

Manufacturing Company, will ad¬
dress the luncheon meeting of the
Investment

Analysts

^

Society

of

conaumer debthas been Chicagom in thp FebruaryRnnm
has been 19*1F» n on Friday, orjjiari 6, at
nmnrtization

h°me
rPHnrerl

we

Hence>

receipts, leaving the amount out¬

r

""r

aid

yeMs

economy becomes

at a rate of $242

consider that the interest

Wp

cur™ pu

ceTved^overnmlnt

increases,

debt

outstanding

debt

ir

the principal in-

the Liberia

developed and put into

duction

u

provided

less dependent
fu
!on/^n«nmpr upon net increases
borrowing
vA
P1? 01 nome ai a
by consumers and more upon loans
?ebt outstan<ling was eq,u
that merely replace amortization
^

,and

™
^rS to
come. These and other tremendous
exoansions
are
bein?
fi-

has

II

War

President
de.

econ¬

whole, Dr. Bogen con¬
the yearly increase of al¬
a

World

^25Sen*K01S5 wat o^vTthird

why it is imperative that the steel

for concern."

viewpoint of the

stimulus which cannot be counted

^oday^the0^Lbillion of home
outstanding

P ?

debt

1

sound and

sumer

^9

pi-

be

consumer

not give cause

omy

relation to disposable naincome that they had in

same
tional

and

From the

quality

its

the

mortgage

con¬

an eco¬

weakened. From

Finance at
New York

need

another

by

would

it

that

burden

would be unduly

-

Mesabi

consumer

disproportionate

so

nomic

lems °f staggering proportions.
Our venture involves building contended
T°o few people have any concep- two towns, complete in every de- that home
tion oi' their magnitude.
tail in what was until recently mortgage and
The great free shipping iron ore wilderness They will be linked consumer
by a 47-mile railroad to move the d e b t s today,
deposits at the head of lake Su- rock from the mire to the lake

garrison
of time,

are.completing

stitute

before

so

or

.

probable that

and

shipping and provide an ideal
blast furnace charge analyzing as

the end is defi- ject, the first units of which'will
state for a long period
nitely in sight. All mining opera- cost more than $160 million.
Some expansion was certainly in Hons, no matter how vast, eventuallv
Programs of this kind, once beorder.
A"~11" winrl """ a<? a 11
!~J nn ~~m hnlp in thn
'
"
ground. The gravity, of this sitna- Sun> must be carried through to
ground. The eravitv of this situa
a

25%

in

than it was

increase

could

debt

e r s

a n

Association of • >

despite the
Perior, upon which our industry
front, where the first unit of a spectacular
less men. We knew of course, that has grown to its gigantic size, are
processing plant is being builLfc, jncreases 0f
steel
would
be
called
upon
to approaching depletion. It now ap- When we reach our
goal of 10
past seven
make up the accumulated deficit pears that ore shipments from that
•of hard
goods which had been source cannot be maintained at million tons of pellets annually, y ^ a r s ^ jiave
built up during the war and the the
present rate much longer. we wil1
moving 30 million tons a ^ 0 u t the

depression

income since 1909.

11.

which will stand handling and Professor of

w Mater,al Problems
time involves

Ultge. and Consumer Debts Not Burdensome

baking the iron powder into pel- America, Dr.
^efs ahout the size of a walnut,
I- Bogen,

'

•

*

*

'

V

,

a permanently pr°duct
hack into manageable
higher plane. I'm sorry that I can't form. This consists of binding and

sa.y.

f

plant in operation which is showing promising results. The pro-1
, A1
.
.
.
„
_
cessing involves crushing; the
Speaking before the Eighth An- is materially less
taconite rock to talcum powder nual Mortgage Banking Confer- 1939.
fineness, separating the iron mag- ence: of New York University,
"in fact, it is
home
mortgage
netically and putting the resulting sponsored by the Mortgage

the war, equals the total capacity

expansion alone, during and since

1

,

.

individuals have

expanded fourfold and a

12:15

p.m.

part of meeting

the debt service on mortgages has
.

,

in the Georgian Room

at Carson Pirie Scott & Co.
The subject of the February 26

will be Eastman Kodak;

March 12, Burroughs Adding Ma,

.

.

nP

replaced rent, the economic bur- chine; and March 26,
den of home and

consumer

debt ical.

^

r-u

Dow Chem-

Volume 177

Number 5192

.

The Commercial and Financial Chronicle

.

.

*

Basic

By R. E. WOOD*

,

The

the

plants and

saw-

same

original pattern

was

ulation is 7,499,000, or approximately 500 per square mile. In
a country as large as
this, what

is

sense

there

in

having

such

a

Sll0f^fhluwrtr'1n0^nt7 in o°^fi0n °,f P°PuIation in such
If of the 19th Century, a small area.

■'

'

Looks for political and economic power
from Atlantic Seaboard to South, Middle West and

materials

raw

our

•

.

.

The

to bankers.

Pacific Coast.

of its

food,

cement and brick

most important changes in our
economy as:
(1) increase in birth rate, and (2) decentralization of manufacturing, banking and insurance, leading to redistribution of
population. Sees problems involved in these changes and a

pass

of

mills to process the raw materials
used for building construction.

Mr. Wood lists

to

basic needs

processing

Chairman of Board, Sears, Roebuck and Company

challenge

the

people, the The three States of Massachusetts,
textile Rhode Island,
and
Connecticut
manufacturing to supply cloth, the have an area ' of 14,480 square
'garment trades to supply clothing,
miles—approximately; their pop-

Changes in Onr Economy

from

all

It

over

country flowed to New Eng-

not

is

only

.

the

.

growth

Jersey.

After

the

Civil

War,

a

great manufacturing industry be-

of

States and will probably occur in
the next 25 years,
I

people

nave

always

believe

great

While

been

certain

birth rate remains
ent

conclusions,

be fairly drawn assuming the

may

near

the pres-

(1) The growth
should

continue

nrpqpnt

mtP

(o)

The

of population.

at

until

or

too

much

of

time

your

mine,

i

so

going

and

to

fine

am

con-

myself to

two

three

or

which i

of the

picture. No observer who States, lafer aUer'WorlTwarTl Vn
has
visited
India,
China,
and.. Texas and the Pacific Coast States,
other parts of Asia, could fail to
Today the growth of manufactursee
that the poverty, ignorance, ing in the United States is far
and
misery in Asia stem from faster in the newer sections of the

+deem overpopulation and

greatest influ-

ductivity

ence

and

on

our

sources

by

economy,

our

amount,

down,

system,

we

the lives of

on

people.

our

The
R.

E.

Wood

sources

birth

rate

creased

the

and

States

resultant

m-

of population.

growtn

1935, tne number
United

our

was

In

birtns in tne

or

2,144,000,

and

our

was

.

.

businessmen
terest

have taken

in population growth
statistics, but there is

vital

other single factor that

foundly affects

During
our

the

our

no

the

Otherwise,

present

our

we.

increased

capital
to

in

the

finance

any

ordinary needs for capital within
that region. There is beginning to
be

decentralization of deposits—

a

the practice of large corporations
to

can

increase

cannot sup-

put their deposits in
where

banks

their

in

plants

on
will tend to undermine the posiliving/tion of banks in New York. How-

of

have made amazing
In spite of the large

in

localities

population

standard

we

population,

srowth

nnnulatinn '

of

greatest in the States bor-

derine

the

Gulf

Coast

ever,

of

have

with the accumulated wealth
York and its immense

New

150 and 160 million

people.

natural

700,000
to

1,900,000

decade of the 40's

resulting in the

census

figure of 150,697,000 on
April 1, 1950.- Since that date, the
= birth
rate has continued high the
death rate low, and the annual in-

'

when

come

birth rate is

.

our

'

economy

population

our

If the present

retained, that figure

t

any

I

case,

cannot

see

this

country needs any furimmigration, except a very

ther

number.

%

resources.
t

imately four times what they had
been in 1940, the last full year

Congress, in its

prior

ter Law.

equal.

Now

good

a

in

the present ses-

sion of Congress.

Behind this at-

England States 2% times, in the
Middle Atlantic States 3 times,

tempt are the Communists, the
so-called liberals and certain racial

If

groups.

guard the interest of

law

to

are

we

the

times

safe-

Southeastern
in

Texas

5V2

States

10 %

times,

in

Callfornia

6

times, in the Pacific

children

^

Uqast/btates t> times.
I believe this to be a healthy

its

enemies; and development for the United States.
every
man
here present
*
* 1
population of 175,000,000 by I960., will help to sustain the law.
—'
It

the

is 'not
effect

difficult

on

our

„

of

an

the highest standard of living in
the world. It means the factories
the United

tinuously

States

have

a

con-

the
is

economy

of

cause

increased.

It

means

that within 10 years, the old prob"lem of farm surpluses will disap-

with the possible exception

pear,

of wheat and

It

tobacco.

means

a

means

for

canital.

enormous

You

bankers

can

revert to

the role you clayed

for

,

160

of
great new country,
a
dynamic,
young

years,

'building
It.

up

a

means

economy

with
:

.

prior

1930.

great .youthful

a

,

to

...

...

,

::ipopulation, imbued with the spi it
:

of youth.

000

In 1950, we had 29,565,-

children

under

10

of

years

'

age, as

compared to 21,227,000 in

1940. How completely wrong were

the

early

Deal

who

prophets
in

the

dicted

this

static

country,

was

of

early

the

New

30's

pre¬

finished

a

with

no

and

a

more

thej decentralization of

address

by

Mr.

Wood

before

the

Ch"^
January

26,

1953.




credit

our

sufficient

expan-

money

the

Edmond

L.

DALLAS, Texas

Brown

—

^

^

necessary

,

continue to advance
o{

lvi

our

the

over

stand-

next

ten

&

secJ^ies

Edmond

j jned th

}

years. I am happy to see our in
Treasury Department in strong

pharf,p

.

1,11

Now I have

probab

y

fi"

as

of

Vice-President
securities

rnrnnrate

R. F.

Griggs Adds

(Special to The Financial Chronicle)

j

bored

Brown has recentb

L

charge ot coipoi ate securities.

hands.
you

WATERBURY, Conn. - Wilby the many figures I have given ]jam j.
Klobedanz, Jr. is with the:
you,
but if you can put your p f. Griggs Company, 35 Leaven-

imagination to work

an

and

material

raw

on

the fig-

worth

Street.

/

from

Scandinavian

This

499,325. Shares

Pan American

t

Transferable Subscription Warrants
these

a portion of thgir
With the" exception

supply.

France, there

of the

Eurone

food

it

is

no

shares have

on

February 18, 1953,

evidencing rights to subscribe for

by the Company to the holders of its

as more

York City
fully set forth in the Prospectus.

Subscription Price To Warrant Holders

country in

$7 Per Share

that produces all

consumes.

been issued

Capital Stock, which Warrants will expire at 3:30 P.M., New
Time,

-

side sources for
Western

Sulphur Company

(Par Value 70^ Per Share)

countries,
system' re-

suited in an enormous growth of
population in
Western
Europe
during the 19th Century,'a population that was dependent on out-

of

■

Capital Stock

later by Japan.

food

.

all

re-exported.

the

solicitation of an offer to buy any of these
made only by the Prospectus.
'
r.

nor a

NEW ISSUE

over the world
flowed to the
workshops of the world. These
raw materials were processed and

and

offer to sell

securities. The offering is

manu-

Britain

imported in 1950, 61% of the food
it concunjpd—rrmant. the food

supplies for 30.000,000 people.
After World

began to

spread

edge,

Copies of the Prospectus may be obtained in any State only from such of the
undersigned and others as may lawfully offer these securities in such State,

War 1, this system

break

down.

The

rapid

of

manufacturing knowl-,,
the development of auto-

matic

'*An

be

bank-

our

solution.

new

Western Europe,

The
original
workshop . was
Britain, later supplemented by
It Germany,. Italy, Holland, Belgium,

churches.

schools,
demand

a

amounts' of

Expands

Investment Business

ern

great extension of all public facilities. highways, telephones, trans-

portation,

Garrett & Go.

Garrett and
Company have taken new ensteps to
J^rge^1 Quarters on^the^eround
balance our budget and to begin
f,
° of the Fidelity Union Lifethe task of reducing our debt, R
v
__
probably small reductions at first.
Dandedoperation specializing ir?
If our money management is wise
Jv iQ{.llP~ nnH qniithwUt-T
and well balanced, I believe we

to-take

This announcement is neither

inalso

and

Food

be

economic

\•

.

The second great basic
fluencing our economy,

have

to

and

will pass from the Atlantic

Decentralization of Manufacturing

their goods, that there is no overproduction, but that capacity will

for

outlet

*
an$

We^f anH^fhe^ar^ifie^oaS^"

inflation; and we certainly need

facturing.
f
/
The 19th Century produced what
may be called a colonial economy,

increasing

/Political

California

hone

visualize

to

economy

increase of 25,000,000 people, with

of

I

must

_

must preserve this/.-

we

defeat

and

in

patriotic,'

our

grandchildren, /as

Americans,

to

tribution

determined effort

a

and weaken it

; net
/immigration) - has
averaged "2,500,000 per year... If

.^eluding

(6)
power

supply for the
expanding population and their
California and Texas, which have increased living standards. On the
the land area and far greater other hand, we want no further

immigration law —the McCarran-Wal-

and

/• continued, this would result in a
•

In

limited

in the last three years (in-

crease

Eventually

their

sion of the

of

a

The management of

-d

during the

per annum

nhb"

elo«?p to Pennsylvania

hand

There

test

to reach

ers

Can

in-

in
one

the

on

end

na^

question mark is the matter of
instalment credit. I believe in the

Pf ?nn"!"' is being made to amend this law creased our purchases in the New

increase

annual

States

w.

Tll'inok

nrohablv

up of our country; on the other hand, not use
these resources in financing speculation. Our biggest problem and

the war. But the disby States was very unIn that period, we in-

By 1941, the birth rate rose, and
the

United

England and the Middle Atlantic
States will lag behind States like

population.

real

last session, passed

'

the

and the congested districts of New

The

that

between

and

pre-

expanding

lation experts of the United States

somewhere

of

ni

lQfiO^ Cabforn^ wnl

Bv

i/wpw yS ^

and of our money supply will
require the wisest of management,

"In 1951, .the purchases of Seai;s
from manufacturers were approx-

stationary population

°

'

ri

bp

sents a problem and a challenge
to the bankers of the United
States. With the credit resources

and manufacturing are moving to
the food and the raw materials—

capita in-

per

natural

a

growth of the United States

have the problem of continuing to
increase it to keep up with the

the

to the present./ We

up

1980.

of

absolute increase between 1940
and 1950, exceeding New York.
This increase in Texas was nearly
all natural increase,
-This continuing
and
rapid

ability and judgment of

increased

come

will be reached between 1970 and

by. 1960

wealth^

over

now

also

we

700,000 per year. On the basis of
the declining birth rate, the popupredicted

(increase of births

hands, they must
aid this building

will

the pe-

riod 1930 to 1950.
That single
State increased its population by
5,000,000 in 20 years. Of this, 1,000,000 represented a natural in-

crease

the

and

Pacific Coast

a

local market, New York can probably hold its position.
> Today, in this country, factories

30's,-masses 200,000,000.
about

was

of

are situated and business is being
done. All of these developments

tivity.

will

economy.

and

regions

hry'ng and other types of producport the

more pro-

decade ,of
increase

natural

■

inand

any

dis-

pools

various

the

advances.

birtns

of

enough

on

can

we

technicians and scientists

1952,

number

Whether

depends

to

-ontinue to develop our manufac-

Since 1939

the

manufacturing. It has
insurance, to banking,
Broadly speaking, today there are
spread

develop other natural rewe now have, and whether

the number of deaths 1,392,000; in

approximately 4,000,000, the number of deaths about 1,350,000.
It is only in recent years that

not

natural ; deposits

new

influin

crease

up.'

not
or

things—whether

further

is the in-

ence

two

cover

confined to

re-

greater

or

standard of living

do this

can

first

great
Gen.

same

or our

will

and

natural *'

our

the

capitalistic

go

an excessive country than^ in the territory east

CaliforaTaTn

movement to

its-.

near

iQfin

Texas
take

tools, the growth of nationalistic sentiment, caused every

country in the world to try to develop its

own

manufacturing for

Kuhn, Loeb & Co.
February 5, 1953.

Carl M.

"

figure*

econ- wjp
,

changes in this distribution.
our

you can get a picture o£
has occurred in the United

ures,
what

population but the distribution of

trt^NeS1'vl???1 workshop, New population thathave been
then omy. There
affects our
to New York,
Pennsylvania,

,

15

(591)

Loeb, Rhoades & Co.

16

The Commercial and Financial Chronicle

(592);

located at

rice, milling concerns,

Continued from page 2

The Security I
:

TT

Like Best
..

..

can't

who

else

afford

to

take

a

tive. It might eventually

quite
for

lot more than it is selling
Or it might be worth a

a

now.

It

lot less.
in

be worth

all

depends

what's

on

the

ground. ,In the past, howthe management of the af-

ever,

taken

Oil

Pancoastal

filiated

Co.

"long-shot" chances

has

on

vast

At least

Oil
un-

t0 take

"big name" investit worthwhile

one

thinks

trust

ment

chance. None other than

a

"conservative"

In-

Street

State

bought 110,200
old Pancoastal Oil,

vestment of Boston

of the

shares

88,160

which will give State Street
shares of the
bean

Carib-

Coastal

new

in

items

of the

one

as

ex-

blocks of wildcat land which have

change for the split-up Pancoastal.

paid off handsomely. For instance,

And here is anotber bonus pos-

they

went

some

years ago

millions
in

up

age

is

there. This Canadian acreheld by Canada South-

0ilS'„ ,whi<* was *n, earlier

Campo,

Space

such

,

.

,

.

•
Y

,

be one
in the
speculative standpoint. It seems nation when the 1953 Congress
that it would take only one good passes a law to restore the offdiscovery in Florida to touch off shore "tidelands" to the control
a rather explosive interest in the
of the various coastal states, *resstock. Just one. If the company ident Eisennower ^ strongly
indicould bring in only one good well, cates that he will sign this "states
sentiment of a strictly speculative rights" measure. It is estimated by
be electrified due to

amount of territory held,
That thought is rather intriguing,
isn't it? The speculator who buys
the huge

official

There

are

many

reasons,

thus,

a

,

.

.

is excellent. On July 31,

to

obtain,

at a

very

reasonable

WOrk for a fairly constant milling , 1952, the end of the fiscal year, price, an unusual combination of
and packaging spread, rather than, Current Assets were $4,278,919; ? high yield, stability, and potential

to seek inventory- price appfeciation as many concerns in the industry have done through purchasing and selling policies based
0n commodity price speculation,
Available supplies of rice are determined at the beginning of each
sources crop year, and buying is very

Florida

of

state

permit

not

does

' petitive advantage. The policy of, company
River Brand's management is to

..But look

Capital,«. $2,650,541;

that the United States will maintain its current importance in
world supply, all lead to this conelusion. Here is a stock which ofThe financial condition of the fers the investor the opportunity

as

potash, sulphur and uranium.

195$.

generally even rate, reflecting the
essential stability of the industry
and the unusually able management of the company.
'

has many other ^ng states enables it to obtain sup—*
phosphate < plies economically and at a com—

Florida

jjfcjy

from Pancoastal. *
at the possibilities of;
Coastal Caribbean will
Coastal Caribbean from a strictly of the main beneficiaries

"spin-off

nature could

El

Houston,

at

"^Hion to°u^and gL.

now

Thursday, February 5,

de- for believing that River Brand is
tailed
review of the company's a good bet for the near and longand Memphis. Southern Rice Sales
Company, the oldest of the con- sales and earnings records, but term future. The company's leadstituent companies, was incorpo- figures for a few years will indi- ing position in its industry, its
rated in 1922, the outgrowth of a cate the growth that 1ias occurred, emphasis on promoting its packbusiness started in 1911 by Mr.' In 1937 combined net sales for the aged products through skillful adJulius Ross, the present president ; predecessors of the company to- vertising and merchandising, the
taled $4,019,823; in 1942 the figure steadily increasing population of
of River Brand Rice Mills,
In 1947
River the United States which augurs
The company obtains its sup- was $10,240,393.
plies of rough rice from growers Brand's net sales were $16,486,- well for the food industry in genin Texas, Arkansas, and Louisiana, 985; and in 1952, $26,013,012.
Net eral, the anticipated continuation
income for 1937 was $66,658; foi
of the severe world rice shortage
an area which accounts for 75% to
1942, $286,443; for 1947, $711,267; despite the fact that the '53-'54
80% of the total U. S. rice crop
and practically all of the long and J and for 1952, $843,864. Moreover, tJ. S. crop may well be the largthe upward trend has been at a est in history, and the probability
facilities

western Canada gibility. The company's leases en- medium
grade varieties.
The
and leased several
it to aii
mjnerals found
in company's
strategic location of
and really "cashed
Fort'un- mills in these three major produc-

into

acres

at

can jonesboro Arkansas; and El Cam-' has been either first or
will po Texas*'and drying and storage.. volume of sales to that market.

folds.

chance. It is very highly specula-

additions

have added milling facilities

.

,

times. This isnt a stock you
surface has hardly been scratched, buy and forget about. You
Obviously this stock is not for have to follow the "Florida
widows or orphans or for anyone Story" month by month as it
thing somewhere. Up to now, the

-

Earned Surplus, $1,741,141; and
Total Shareholders' Equity, $2,859,376. As has been stated above,
the company's 1952 fiscal earnings
of $2.64 per share very ample covered the regular dividend of $1.12
second in and the extra $0.10 a share,

through

elevator and storage company. -

an

Subsequent' integrated

,,

.

m..

.

I

Working

made primarily in bulk,exclusive -agents
and
commission houses to Cuba, Latin
America, and the West Indies.
Cuba is normally the largest importer of U. S. rice, and in recent
years
River Brand consistently

year, are

-Houston, Texas; Eunice, "Louisi¬
ana;
and Memphis," Tennesesee.
Also acquired at this time were

.

Current Liabilities,

$1,628,378;. Net capital appreciation.

,

From

Washington

Ahead

that about half of its huge leases carefully gauged to meet antici-.
to Coastal are free from Federal, pated requirements for ,the year,
government claim in the tidelands There has never been a major rice.

=

dispute. However, about half of crop failure in the United States,
to Coastal's holdings, or about 2,500,- 1
gaje 0f Repackaged brands in

of the News

By CARLISLE

BARGERON

=

Coastal Caribbean should have his

the

within

answer

next

two

000 water-covered acres, are in domestic markets is the company'sthe tidelands territory which ex— rr>ost Drofitable ooeration and its
tends 10 miles offshore into the
The dominant
Gulf of Mexico. Settlement of the position that River Brand holds
tidelands battle in favor of the jn ^s fjeid js the result of-the
or
not Florida has several good states should boom drilling activ- prnnhasis olaced on the develoo—
oilfields. Hopes will rise and fall, ity all around the Gulf, including, ment 0f the "River" and "Caroand then fall and rise again many of course, the state of Florida too. jioa"
brand
names.
Under the

certain drilling obligations which will cause a
number of very vital wells to be
spudded in over these next few
years. Then we will know whether
four years. There are

pl°^Py Merest

"River" name, the company

SCHUYLER

VAN VECIITEN

Vice-President & Director, Lee Higginson

}

II.

River Brand Rice Mills
the

Among
sented

the

to

today

in¬

unusual

that

values

vestment

mated

many

pre¬

are

prospective

purchaser of common stocks, the
one

equity,
pres¬

1

lish

6.0

before

for

n

General

a

"the

were

and

principal

French companies.

market.

stantial

A

return

Since

to

sub¬

from

exportation

Orient is not

the

foreseeable

a

near-

term

Reserve).

of

return

Schuyler Van Vechten

Con¬

tingency

of the world's

one

in greatest

world

appropria¬

te

the

beginning of World War II,
however, Oriental production, and
particularly exportation, has been
disrupted, and the United States,
Egypt, Brazil, and Mexico have
become the major elements in the

earnings
o f
$2.64 per share
($2.78
per
an

year's

above

the

year's

share

50%

rice-exporting nations, and world
markets were dominated by Eng¬

times last fisc a

last

1941-50 average.

Indo-China

ently is priced
at
15%, sells
around

It

record.

on

above

almost

crop—esti¬
100-pound

shortage during
the past 10-year period. Prior to
1939
Burma, Siam, and French

Rice Mills.

which

and

crop

foods

is River Brand

This

10%

some

Rice has been

mind

S.

million

48

bags—is the highest
is

that stands

out in my

1952-53 U.
at

7.1%

It

affords

a

possibility, since agriculture,
there has been disrupted by war,

the

both

rice

Corporation, New York City

The

packmedium-grain white
long-grain natural
brown rice. The latter variety of¬
fers the highest
content of the

ages

and

a

a

If you were on one of

industry in this country, you most likely
with "steel." America is built upon steel, we are
frequently told. But you would be wrong if

come

is

7.7%. There

is

share> the yield

offered, thus, the
a liberal in-

not

strong defensive

come

as

well

as

qualities. River Brand Rice Mills,
Inc., occupies a dominant position
in

basic segment of the food in¬

a

dustry,
and

as

one

,

_

mestic

of the leading do.

producers

the

of

largest

sumption.

Its

brands,

_

milled

rice

distributor

packaged rice for household
.tised

of

con-

nat:onally adver"Carolina"
and

believed;rthat- the

States would lose

"Carolina"

is

name

packaged

a

long-grain white variety, which
enjoys widespread recognition as
the finest quality rice obtainable.
Domestic distribution
out

national

a

on

is carried

scale; primary

emphasis, however, has been on
nordlern and eastern markets,
where, while per capita consump¬

tion of rice is relatively low, there
is

marked

a

tion,

and

popula¬

of

density

preferences

consumer

strong for packaged uniform

are

These markets are

quality foods.
considered

more

favorable to the

company's growing packaged rice
business

than

such

southern states,
.

,

areas

as

the

where rice is sold
,

,

„

.

,.

bHlk and under highly corn-

ln

pe'ltlve conditions to consumers
wbo ar? a,lr,eady substantial rice

the
of

cessful
and

recently has

to

several

a

conference

allotments

Jan.

5

in

of

70

nations

few

pounds

would

his

of

number

self-service

S.

be

no

marketing quotas

present

on

about

the

or acreage

1953

50%

of

At

crop.

the

U.

is being exported.
'
River Brand
Rice
Mills

cron

S.

'

growth has taken place in recent
years, stimulated by increased do-

formed

mestic consumption and

Well

in

industry's

1946

to

consolidate

leading, packager

sir,

smcejhet beginning of World War distributor, with three established of

export

total

sales

in

the

1952

sales,
23%

fiscal

Monday, I

was

category.
You can bet your

boots, too, that the lobbyists of the powerful
celebrated on Monday night, drtnk wine
with their wives, told them jubilantly of their success in getting
favorable recognition. Dejected were those who had tried to get
the President to sponsor the St. Lawrence waterway project in his
message and who had planted the story with radio commentators
teachers'

school

lobby

that he would.

In all of this weird industry
message,

of getting stuff into a Presidential

though, the fellow who arouses my admiration and who

undoubtedly will be honored at the next dinner of those engaged
in the

business, is the

of the matter.

Brand's

on

who will most certainly, seek to give the impression to
clients that they did have an influence in these
passages and you get an understanding of the industry, or liveli¬
hoods revolving around such passages. Statements about the TaftHartley Act, removal of controls and the like are in the same

markets

accounted -.for, about

Congress

their employers or

nation's major retail chains is attributable to its reputation for

River1

to

take it that the man who wrote the passages

you can

Food and Drug

and;, which

message

by

sages and

a

consistently high quality and for
being a dependable supplier regardless of price or supply conditions in the rice industry.,

Union

dealing with these delicate subjects is a $100.000-a-year man ex¬
cept that he doesn't get anything like that. You can imagine, too,
the number of men who tried to get in their word on these pas¬

well-entrenched position with the

Southern Rice Sales Company, the

was

the

anxiously

both instances the market wpuld drop.

throughout the nation should be
a favorable factor for the future,
as
these markets handle only
Agriculture Packaged foods.
River Brand's

Department of
recently announced that there will

of

three stock brokers about rumors in Wall
Street that the new President was going to take a stand against
repeal of the Excess Profits Tax which expires, unless renewed,
June 30, and on the other hand, he was going to propose such
drastic
reductions in governmental expenditures that inflation
would be immediately arrested, we would have deflation, and in

attempt to
stimulate world production. Partly as a result of this meeting, the
an

State

called

years

have

contributor

worthy of listing by "Who's Who" as if you had contributed to the
literature, art or health of your fellow men.
In the
hours before President Eisenhower's delivery of

River Brand's management

a

into the Presi¬

Such a message necessarily can't be the thinking
a conglomeration of contributions.
To have been
to a Presidential message is an accomplishment

It is

of one man.

expanded

been

Bargeron

dential message.

national scope.

a

Carlisle

those whose business it is to get a paragraph or so

material effect on domestic demand. Continued increase in the

has




last

of

U.

by a very
large export demand in the period

the

Currently, the world rice supply is in such acute shortage that

Comparatively little is known
by the public about the rice industry in general. Although rice

commercially
in this country since the Colonial
period,
the
industry's
greatest

in

prosperity of the farmers is the prosperity
all, then you can appreciate the tremen¬
effect upon the whole common weal of

us

dous

-

UN

im¬

number of mink coats which their wives buy,

rates.

a

The

which, of course, bears upon international trade
and foreign relations; the amount they spend
at the butchers and grocerls which manifestly
has to do with the farmers, and admittedly

Under

noted.

points to the key role that advertisinS Plays in the company's
growth, since with the present
reliable deliveries, and with the small per capita rice consumption
latter country, preferential tariff in the United States, an increase

opened

produced

United

major part of

a

Congress.

the

is

rice

which

South American, West
Indian, 6r Cuban markets, since it
enjoys the competitive advantages
of higher quality of product, more

"Rivei,"
enjoy
wide
consumer
popularity
a*~d
recognition
for
premium quality.

been

long-term future, it is

to

messages

of this industry, while I wouldn't
pretend to say it is as large as steel, neverthe¬
less rates high in the manner in which our
citizens make a living. When you consider the
number of people engaged, the number of
household servants they in turn employ, the
portance

natural vitamins and nutrients for

its present

opportunity of

rare

able in the

would
being

didn't reckon among the most important
industries, that of getting a passage in the

Presidential

.

a

up

you

well-pro¬ rice demand has risen as a resulteaters' 4 skillful advertising camtected
$1.12
annual
dividend, of population increases, and large pal®n' almed to build up consumbased on the regular $0.28 quar- areas
of
production
are
under er Prfcference for River Brand's
terly payment; and taking into Communist control Even if Orien- Packaged- products in the New
consideration
last
year's
extra tal supplies should become avail- York area» has been hi2hly suc"
on

those youthful quiz programs entitled
asked the question of what is

"Youth Wants to Know" and were
the most important

how
.

one

who got in the plug about the Pure
I know nothing about the merits

Administration.

But the Presidential message had a passage about

the Pure Food and Drug

Administration should be able to

continue its program of factory inspections.

-had

in

gram

The Supreme Court

December, 1952, the President said, invalidated this pro¬

because the law authorizing them contained inconsistent and

unclear

provisions.

This should be remedied, the President said

firmly.

It

of his

was one

more

positive statements, in fact.

Volume 177

Number 5192... The Commercial and Financial Chronicle

a

sound' and: scientific monetary paper money to redeem it in gold

or

By FREDERICK G. SHULL
*

gem

Chairman, Connecticut Gold Standard League

no

Of Union Securities

It

Gold Standard advocate, in combatting proposals for devalua¬
tion of the dollar, cites historic evils resulting from this action,

articles

cial" "and

daily

in

other

the

"finan¬

sections 'of

the

prominence

to

and

money,
and to its op¬

s

from
t j c

those

they1

act

taken.

And

it

fair

seems

to

make

sure

standard

bill

that the 1953 gold
just introduced - by

Mr, Reed shall not be allowed to
suffer the same fate as its preder
cessqrs

—-

lowed to "die oh the vine." ;

J

-

ton will want to

rushed
with

into

do, before being

further

tampering
currency at the behest

ment

bankers,
Broadway,

Now

Y

o r

City,

to

that that is just what the
Administration in Washing¬

ties
Corpora¬
tion, invest¬

that it shall not be al¬ *65

has been

assume
new

Union Securi¬

Commercial Credit Go.

3%% Notes Offered

k

i t
an-

.announced. To

accept his new
position Mr.

of

.

.

happen to
originate from
With

overseas.

that

our
Whipple has
selfish gold-producing interests
Additional.capital to finance an. resigned' as
—particularly since the Republi¬ increased volume of business is financial Vicea
pretended payment." Are we can party's 1952
by.. Commercial President of
platform pledges being •' sought
going to again listen to selfish return to "a dollar on a
Oliver M. Whipple
fully con¬ Credit Corp. with the public of¬ The Mutual
interests urging a
repetition of vertible
fering yesterday (Feb.: 4) of an Life insurance
gold basis." •;
.
that dishonesty — the "raising of
issue of $25,000,000 of the com¬
Company, of New.-York with which
the denomination" of our coin by
New Administration Can Act
pany's 3%% junior subordinated he was associated since 1928. He
50 per cent, with resultant "de¬
And what can the new Admin¬ notes, due Feb. -1,1973,.by■a bank¬ is a member of the advisory board
valuation" of
our
currency
by
istration do about it? The answer ing group headed jointly by Kid¬ of the Rockefeller Center * office
33% per cent? It is strongly to
is that, as the leading economic der, Peabody & Co. and The First of Chemical Bank & Trust Com¬
be hoped that we are not!
Boston Corp. The new notes are
nation
of the world,
they can
pany and a director of the
Again, no one questions that the first put the American dollar priced at 100% and accrued inter¬
Orangeburg, (N. Y.) Manufactur¬

sources, some
of the articles

foreign

many

dishonest

that

in

"disguised a real public bank¬
ruptcy under the appearance of

While

dome

a

considerable declared it to be a thrity-fivethe subject of dollar gold piece, approximately;

sound

largely

twenty-dollar gold piece
nearly a full century, and

for

noted

.

give

press

posite.

been

be

experts didn't say: Let's
raise the official price of gold;
rather, "they indicated that here
is a subject that should be care¬
fully studied before any action
is

Recent

will

British

and urges support of Reed Bill, which would again restore
the full gold standard to U. S. currency.

Whipple Elected V.-ffi

But 'there can: be .little coin on demand/and establish and
hope of - progress - at > any maintain a domestic gold coin
early date for the monetary-sys¬ standard.'! (This quote is front the
tem ' of * the world as a whole, Baltimore ''Evening Sun," Jan. 27,
Oliver M.
except as the result of a process 1953.)
Whipple has been
of evolution
elected
a
Vice-President
starting from the
and
It is to be hoped that sufficient
historic gold standard."
director of
"
public interest will be developed

system!

Can Restoie Gold Standard

17

(593)

countries in
straitened cir¬

,

cumstances,
economically,
it
is
easily
understand¬

Frederick G. Skull

able that they

anxious to

are

financial re¬
they can,
regardless of how it might affect
bolster

their
in

sources

own

any

way

the welfare of the United States
—their
it is

but

benefactor;

greatest

difficult to understand how

anyone having the good fortune
to be a United States citizen can

give support to the fantastic idea
that
be

the American dollar

"devaluated"

further

should
some¬

—

study of what constitute^ sound back on a firm foundation such
money by Andrew D. White, in as it has
occupied throughout the
his monetary masterpiece "Fiat
greater part of our history—they
Money Inflation in France," is can, and
should, firmly fix the
an
authoritative
statement
of "value" of
the dollar at $35 a
what happens when nations resort fine
ounce of gold and make it
to tampering with their curren¬
redeemable, on demand, at that
cies.
Dr. White shows that, dur¬
fixed value.
And next, in their
ing the period 1789 to 1797,
capacity
of
world
leadership,
France tried to bolster her eco¬
they can encourage other nations
nomic welfare by
resorting to to, likewise, fix the "values" of
"irredeemable" paper money; and
their
respective
currencies
in
that it so ruined her finances that
terms of a definite weight of gold
that paper money became practi¬
for each currency — thus laying
cally worthless and was thrown the foundation for a "sound and
out by the people as possessing
scientific monetary system,"
in
no

value

As

whatever.

a

result

line with the recommendations of

est

and

are

convertible

into

the

ing Company. Mr. Whipple is a

company's common stock for 10
graduate of Yale University,* Class
years, at $42 per share through
Jan. 31,1958, and, in each succeed¬ of '23.
ing 12-month period, at the great¬
er of $46 per share or the book
value per share on the preceding
June 30, subject to adjustments. A
sinking fund commencing in 1964
provides for the retirement of 5%
KANSAS
CITY, Mo.—Alton
of any
unconverted balance of
notes outstanding at the termina¬ Gumbiner has become associated

Alton Gumbiner With

Barret, Fitch, North

tion of the conversion

tiring

an

period,

re¬

with Barret,

Fitch, North & Co.,

aggregate of 50% of such 1006 Baltimore
Avenue, members

balance prior to maturity.

of the Midwest

Commercial Credit Corp. is one
of the country's three leading in¬

Stock Exchange,

to head the firm's expanded trad¬

thing that would result, auto¬ of his study Dr, White reached
stalment financing companies, and ing
and analytical department.
the "Macmillan Committee." With
matically, if the official price of this significant conclusion:
is also engaged in fire, theft and Mr. Gumbiner was formerly asso¬
that
much
accomplished,
the
gold were to be raised in terms
credit insurance and in certain di¬
"Every other attempt of the world will then have come close
ciated with George K. Baum &
of dollars.
1
manufacturing
opera¬
kind in
human history, under to having an "international gold versified
As to the domestic angle, there
tions.
Volume of the company's Company and prior thereto was
whatever
circumstances, has standard"; it will have had the
are
some
who claim that the
instalment, 1 o a n and factoring Kansas City manager for White
reached similar results in kind effect of
quieting much of the business has increased
official price of gold should be
steadily in & Company.
if not in degree. All of them show talk
about
"currency converti¬
raised to $52.50 a fine ounce — the extistence Of financial laws
the past five years with total out¬
bility!'; and it will have elimi¬
which is merely another way of as
real
in
their
operation as nated all this idle talk about rais¬ standing on Dec. 31, 1951, almost
saying that the dollar should be those which hold the planets in
double the figure of five years
ing the official price of gold.
reduced in "value" by 33% per
their courses."
earlier.
Finally, Representative Daniel
cent.
Can
those
advocates
of
In line with Dr. White's theory A. Reed (R., N. Y.) Chairman of
Proceeds from the current sale
further tampering with our cur¬
'

G. I. McKelvey

currencies

that

cannot

tam¬

be

the House Ways and Means Com¬
mittee, has pretty well set the
stage for prompt action by his
'the owners of accumulated sav¬
remind
ourselves
how
consist¬ Party on this important issue;
ings payable in dollars, regardless
o| the "value" of the dollar itself, ently, from 1789 until 1933, this for, on Jan. 27, he introduced his
nation has observed the "finan¬ gold standard
bill, identical with
aggregating upward of $500 bil¬
cial laws" which he so wisely one he has introduced each year
lion, and that a 33% per cent
envisioned: In 1792, under the for the past several
years, which
"devaluation" of the dollar would
able
leadership
of
Alexander would:
rob our citizens of more than $160
Hamilton, we did not print a lot
"Restore the right of American
billion of the real value of those
of paper money and leave it to
citizens to freely own, gold and
accumulated savings?
From the
the marketplace to determine its
above figures it is easily seen
gold coins; return control^ over
"value"—we set-the-value of the
that raising the official price of
the public purse to the people;
American dollar at 24.75 grains
restrain further deterioration of
gold to $52.50 an ounce would
of fine gold (based, at the time,
-result in an average loss of $1,000
our currency;
enable holders of
on a standard of 371.25 grains of
for every man, woman and child
pure silver per dollar, with 15
throughout this nation.

be unaware that the 160
million people of this nation are
rency

pered with at the whim of po¬
litical leaders, it may be well to

will be used for additional work¬

Joins
Tucker, Anthony Co.

Tucker, Anthony & Co., 120
ing capital requirements to meet
this continued uptrend.
Broadway, New York City, mem¬
receivables

Gross

the nine

acquired for bers of the New York Stock Ex¬

months ended

Sept. 30, change, announce that George I.

1952, aggregated $2,083,976,000. Of McKelvey, Jr., has become asso¬
income of $14,- ciated with the firm in charge of
463,000 for the nine-month period, the municipal bond department.
consolidated net

de¬

Mr. McKelvey was formerly a

rived from finance operations, $3,-

partner in Eldridge & Co. and also

approximately $8,400,000
100,000

from

insurance

was

business of Darby & Co. since the latter

and $2,900,000 from the company's firm's inception in 1930 and until

manufacturing subsidiaries.

its dissolution.

'

of silver

ounces

Certain

writers

from

overseas

it
to reduce
the gold
content of our dollar, in order
to improve the position of the
pound
sterling.
But
there
is
nothing in the history of mone¬
tary policy to substantiate the
claim that "devaluating" a na¬
tion's currency has any basis of
honesty, whatever — in fact, all
experience bears out the opposite.
appear to
to
Britain

feel

Let's examine

a

that

few

we

cases

owe

to

see

just what Jesuits may reasonably
be expected to accrue from tam¬

pering

the

with

"value"

of

a

nation's currency:

Nearly

200

years

ago

of gold). And that
the dollar was never

"value" of

changed

the

until

1834-37

era,

gold,
of

0.9

the

fine),

dollar

6 per

cent.

ward

the

was

"value''

firmly

of

at

held

the

world's greatest economist, Adam

grains

per

took

$20.67

over

in

1933.

It

an

■

cial laws
as

are

"finan¬

real in their opera¬
those which hold the
as

View of "Macmillan Committee"

agitation
price
cannot be said to reflect
"The raising of the denomina¬ the opinion of Britishers of a
tion of the coin has been the most generation
ago.
In
1931, the
usual expedient by which a real "Macmillan Committee," made up
public bankruptcy has been dis¬ of 14 eminent British financiers
guised under the appearance of and economists, rendered a report
which-

raising

the

contains

official

the

following

political leaders significant statement:
"There is,
sound
opinion so
perhaps, no more
well expressed by Adam Smith— important object in the field of
for they "raised the denomination human technique than that of the
of our coin"; they took what had world as a whole should achieve
our




*

*

The Bank is offering to stockholders the right to subscribe for the above
Stock at $25 per Share in the ratio of one Share for

Capital

each three Shares of outstanding
Capital Stock held of record January 29, 1953. Transferable warrants evidencing such
subscription rights will expire at 2:00 p.m., E.S.T., February 20, 1953. Capital
Stock may be offered by the undersigned as set forth in the Offering Circular.

And all of this present

about

1933-34,
ignored this

Capital Stock
(Par Yalue $10 Per Share)

all

of gold

In

Albany

gives point to the statement by

Smith, in his "Wealth of Nations,"

pretended payment."

Established 1803

dollar) until the New

Dr. White that there

expressed the following view:

a

State Bank of

dollar

of fine gold (meaning 23.22

ounce

Deal

"devaluation"
approximately

a
of

From that time for¬

planets in their courses."

the

101,725 Shares

when it was just slightly reduced
to 23.22
grains (25.8 grains of

tion

Adam Smith's View

(i

being equivalent

to one ounce

Offering Circular

on

Request

Salomon Bros. & Hutzler
Members New York Stock Exchange

Sixty Wall Street

New York 5,

N. Y.

13

The Commercial and Financial Chronicle

(594)

.

.

.

Thursday, February 5, 1953

of doing

business to all kinds of ship of.industry in the hands of
women's , clubs,- men's the people without turning it over
organizations, labor unions, to the state.
We are going far
church societies, and schools and toward
making .the control of
colleges. To supplement the films, business a democratic process just
we
provide speakers and litera- as our control of government is.
ture.
i
In support of this, let me cite a

By ROSCOE C. INGALLS*

In calling attention to

arranged

During these periods, all forms of
communication are used to
about America's unique sys-

tell

Points to efforts of stock exchanges and other

confidence in our national
productive machinery by becoming a part owner of it. You here

~~

express

We

call

economic

our

system

ownership
land

tion.

of

pnd

tural
the

retained

na¬

the

produc¬

the system
s e

1 f

v a

ingalls

Roscoe

is

t

trol

of course, an accurate
of the
way
we
do

not

ef¬

is

little

too

understood

by any of us. We have been,
believe, ringside spectators at

con-

under

the

in

ment

I
a

War

I, and

since World

decades

have been

we

description
business

ments

in

the

that

mainstream

We must, I believe, edu¬

progress.

cate ourselves—whoever

the

to

as

and

nature

we

the

are¬

signifi¬

of this unique and wonder¬

cance

machine

of

us

For too many peo^-

havel

we

set

All

up.

students, wage earners,
farmers, business leaders, and cer¬
tainly securities dealers—need a

ple the word has connotations of

•conflict, privilege, and unfairness.
In that respect, it is not descrip¬
have created.

lost sight of
of our economic

have

we

ful

It

which was born
when the early socialist writers
proclaimed the inevitable war be¬
An Enormous Job of Education
tween their type of society and
the evil thing called capitalism.
We have already, I am glad to
It hearkens back to a day when
say,
made a good start on the
there was widespread. economic enormous
job of education ; we
injustice and when nobody could have to do—but only a good start.
•

possibly foresee the development
of the really democratic capital¬

Businessmen
have

know today.

."Harper's,"
,cry
,

,

says
that what we
ip America today is a far
from the classic concept of

capitalism
goes the

and

it

that

socialists

one

actually

better.

The

socialists argue for public—that is,

government

—

ownership

of

«.*An address by Mr. Ingalls at

sponsored

by

a

number

industrialists

and

become

acutely

America's need for

Frederick Lewis Allen, editor of

of

the

dinner

a

business

terprises located in Baltimore,
more, Md., February 2, 1953.

at

en¬

Balti¬

the

about

broader

a

of

aware

un¬

investment
it to them

things

to

must

we

steps

to

meet

that

and

Summer

1952

■

-

Jordan
Brock
410

of

reserves at

Lincoln

L

pn,4Ki>

wage

Estimate of

Hennigh

S

1,371.322.0(1

income

S

1,225,473.95

-

49,152.74
10,908.05

;

779,980

4,101,BUI)

10,708,975.00

themselves.
learn of

1,025,100

2.710,500.00

199,098.00

J

828,958 (1)

-

51,573.77

7,215,401 bbls.

773,873,28)
#19,8 JO,173.G3

30,042.33

$770,215.00

7,035,211 MCF
(2)

Gas

(figures

Capitalization
DATA

in, 1000

cubic

feet):

40

Stock

Selling Around SI Per Share

SENT UPON REQUEST

of National Association

Exchange Place, New York 5




in challenging them—then I believe
we must carefully examine our
that they are about evenly divided present structure of income and
between men and women. We capital gains^ taxes as^they affect-^
know that a third of them are investment in American entei*.
from families with less than $5,- prises. I would hope that the offi000 yearlY income and that eight cials of our new national Adminisout of ten are ^rom families with tration will do just that. I would
less than
annual income, hope also that all of us as conWe know that they live all over scientious citizens will give more

a

to

of economics in

see

schools

succeed

and

I

why thev shouldn't

reason

no

hieh

our

If these programs

all 0f our youth will leave oub-

lie

schools

standing

the

with

than

economic

about

to

some

Sing

You

for

may

also

stock m the companies which em- • elected representatives should be

under-

this

acnuirc

of

are

are

commendable

in

famutar

be

million -shareholders

the United States and that they thought to this problem than we
represent every type of business have in the past.
out-of— aud profession.
We know, too,
These are some of the questions
young.Iriat mauy of them are buying-that I think we citizens and our

they

There

opportunities

oeonle

under-

have

now

system

enter.

very

school

clearer

a

thev

-half

publicly owned corporations and

now

P1^ ,them.

with

Junior

Achievement, that
fascinating national movement in

asking about taxes

Is our 26%

which

their

All

of

this

makes

pnonnraping nirtnrp
we

of Securities

lio" Americans having savings ac-. the

exciting,

an

Rut

a*

T

mf/ennlvaenorfhe^fn
We^ave scarcelv scratchedhundred

have

surface.

done

The

by all

of

It must

us—educators/

parents

as

the

well

as

to

get

a

people

sound understanding/
has given us, a

higher living .standard and greater
national strength than any other
system has ever produced.
We
must
we

understand

are

that

if
get the most from it in
of benefits for all people,
system

to

the way

•

<:

Increased

.

•

Num,ber of Security

t.xTee fnterest

than

divi

Again,- I submit/we have only ^
Excess Drofrts"
made a good beginning. We shall
J
1
see the day, I believe/when the. ta*
number of people who own shares
SiiSf nrdat th?v1
in America's business and
ng o
£
try will be several timds six and a ?®£'clr.t- Ja*?
half million. I am1'riot 'suggesting;
rirv?ni;
that people liquidate their other
^
nnmnn

securities

American

of corpo*I

profit jmd
and four million People once as dividends — enco.uraging

*>^ry ?.w.n 210 million life insurance policies.
•.
, nfv

work

and expanded.

lunite^

indus-v^^s spend

^

investments to buy corporate se1 .e so.u^ces OI m
.y xnat
curities. Nor am I unmindful of - American industry must .nave TO«
the fact that many people are in- pay tor lts neeaecl growtn.
direct owners of industry through
The answers .to these questions,
"their insurance
programs,- their are neither'simple nor clear cut,

but we must find the answers if
system we believe- in is to
From an increased public un- a broadening of direct popular, in- flourish.
I am confident that we
derstanding of our economic ma- vestment in America's business for shall arrive at sound answers to
chinery, it is natural to progress' at least two major reasons; First,, this problem of taxation, just as
pension
funds.

plans,

We

and

must

the

have,

mutual

however,

this

to increased

GREENFIELD * CO., INC.
Member

encouraged

am

being made to introduce more
practical more realistic teaching

popular participation, it is essential if we are to achieve I am confident that we shall do
our democratic ideal of a gigantic
the other things we must do to
productive machine owned by the increase the benefits we gain from
that the broadest possible partici- people and responsible to the peo- our free enterprise system.
For
pation
is
desirable.
In
other pie without state control. Second.,, this is the way we make progress
words, the more Americans who the savings of the American mid- in America." We set as our goal

In

Small

I

Owners

923,082.40)

17,035,211 (2) MCF

tli Distillate.

what

know

and investors

number of efforts

a

277,000.75

£<«G<>;947.UO '

151,239.00

f

to

earners

dealers—if

(5 wells )•„_

Production

school

they need to know when they become

and

annual gross

and

block

young

in

of the system that

current Held rates

402,443

-2
-2

acre

them

expect

the

are

-

Gross dollar value

reserves

in barrels

-2

neglect
they

business executives, labor leaders,

^

Cowan

not

one—as.

counts, and-43 million own Series Is the double taxation
E Federal government bonds. One-rate earnings-once as

of

I have time this

evening to
tell you of only a few of them.
I am, of course, most familiar with

^

;

of

people while

are

I

job

today

by the New York Stock Exchange
and by various companies.
They
carry the story of America's way

number

need.

(An Oklahoma Producing Co.)

-

take

to

ground.

,

complex as the atom
bomb and as controversial as religiop pr politics. I am sure, how"ever,-that there are certain fundaeconomic scene, we have studied mentals on which everybody will
the people who have been buying agree. One is that taxes must be
shares in America's businesi. We adequate to provide the govern*
know
that' they
are
everyday, ment enough money for essential *
garden-variety Americans, quite services and national defense. An* ;
unlike the socialists' cartoon ver- other is that taxes must be fair
sion of the paunchy capitalist with and equitable. A third is that a
the dollar signs on his brocaded tax is a bad tax if it stifles initia-,
vest. We know, from a study pre- tive,
promotes inefficiency, or
pared for the New York Stock Ex- otherwise endangers our economic
change by the Brookings Institu- health. If we accept these propolion, that there are about six and sitions—and I cannot conceive of
act

high school students set up
own.corporation, issue stock,
sell goods or services for profit
and pay dividends.
In this way,
the program of our Association of they get first-hand knowledge of
Stock
Exchange
Firms,
under our profit-and-loss system, and
whose auspices I am speaking to they discover for themselves the
;
you.
We employ films produced advantages of free enterprise

a

AMERICAN STATES OIL CO.

Co.

and

own

that we must do
teaching these
America's youth—that

better

continued

''

their

We know, too,
a

be

Brock

business
on

are

growth.

than we used to
know. As part of our awakening
to the fact that something wonderful has been happening on our
the

agriculture. This, I think, is
heartening.
It is evidence
that
we
are
learning to knock
down
the
barrier that formerly
stood between the people and the

more

who

of America's economic
In closing, I should like
t0 comment briefly on one of
them—namely, the; role of taxes
as a deterrent or a stimulant to
the proper functioning of our inabout
these dustrial machine. The subject of
getting into taxes, to be sure, is an enormous
big story

This is all to the good. But be- capital gams tax rate a stumbling
fore we become too pleased with block to the kind of wise investthis picture, let us take a look at ing our economic health requires?
some other facts.
Remembering Is it unrealistic in view of the
that there are six and a half mil-' rise in dollar value of all types
lion stockholders in publicly of property in the last few years?
owned corporations, let us see how Does-it produce as much revenue
many Americans are engaged in for the government as a lower tax
other forms of investing and rate would produce by encouragbuilding security. Fifty-three mil-' ing more investment activity? Is

derstanding of its own economic
machinery, and they have taken

WE RECOMMEND

in

Americans

most

nine

formed

new

know

We

just as they
developments in

economy

learn about

"he

Lease

workings of America's

industrial

—

broader, better understanding of
this system we live under so that
we can do our part in
making it
work and improving it.

stereotype

have

organizations. Through it the peopie of your community have an
opportunity to learn what American capitalism means to them and

pre*

so

That is, occupied with immediate require¬

its overtones.

we

your

civic

her

fascinating story and

a

is

that

ing that I find objectionable but

we

socialism

remarkable evolutionary develop-:

It is not its precise mean¬

tive of what

In this way, Mr,

"the United States

evolving toward
socialism."

This

America, as far as it goes. I some^times wish, however, that we had
a more suitable word than "capi¬
talism."

the

ownership ' and

undersirable features

one

enter¬

e

competitive conditions."

ism

in

your

in those big companies increased
by 72%. To quote a prominent
learn that in some places securi- comedian with a prominent nose:
ties dealer? have placed exhibits "Everybody-wants to get inta da
avoided in county fairs. Here the crowds act." And I believe that is healthy
of gov-5 who
throng the midways can learn for America.
>
, .
\
»

but past

by pri-

prise and

-

a

through

and

effective

an

program

doing so we have
desirable aspects of

ernment control.

it-

are

fected

in

Allen declares,

goods, and the
operation
0 f

is

Allen

Mr.

production.

And

wealth, private

t

tion, distribu¬
tion, and exchange
of

5

schools

number of other thoughtful

a

education

adult

observers point out that we have
capitalism is "the system accomplished public ownership of how they and their families can
of
modeni industry in America
by selling share in its growth. Other comcountries
i n, shares in our great corporations to
munities have used other techwhich
the millions of people across the na¬
niques. It may surprise you to

ary says

t

of

means

and

have

Baltimore

in

they stifle incentive.

Urges revision of income and capital gains taxes.
'"capitalism,"
and
the
term
is
technically correct. The diction¬

everybody can

which

under

tern

lauds
the increasing participation in ownership by public through
purchases of securities of business enterprises. Holds present
deterrent to investments, since

n

mass

organizations in promoting knowledge of investments and

a

accomplish our pur-

to

That is $175 for every

ber of America's largest corpora- required to maintain the industions today have more than twice trial growth America needs. Much
as many owners as they have em- of this money, of course, will
ployees. Records of some of the come from profits and from borbiggest companies show that no rowing, but a great deal of it
one individual owns as much as must come from hundreds
of
one per cent of the stock.
The thousands of ordinary Americans
American Telephone and -Tele- across the country who believe in
graph Company, which operates the future of our economy and
much of our vast communications want to share in its promise,
network, is owned by more than
a million people. This diffusion Taxes—A Deterrent to Investment
of ownership, as I say, has develWe have seen the importance
oped in just the last few decades, 0f educating our people to a betand it is continuing at a steady ter understanding of the unique
pace. There was recently a study economic system they are part of.
of the ownership of 45 major cor- we have discussed the need for
porations whose stock is listed on broadening direct public particithe New York Stock Exchange. It pation in the ownership of Amershowed that between 1930 and leap business. There are many
J 950 the number of shareholders equally important chapters in this

Los Angeles, Philadelphia,
and Detroit have for several years
held "Invest in America Weeks."

because of large number of security holders,
Ingalls decries lack of its true understanding. Says our
inadequate knowledge of free enterprise poses a threat to true

are

this is the kind of money that is

number of cities across the

a

pose.

public's ownership of industry under our

Mr.

taxes

few fairly startling facts. A num-

In

country, special events have been

Exchange

economic system,

"capitalism."

man, woman, and child in
the
country. Its capital expenditures
this year, according to the economists, will be nearly equal to that
huge sum. These are staggering
figures, even for these times, yet

—

service

President, Association of Stock Exchange Firms
Partner, Ingalls & Snyder, Members New York Stock

equipment.

groups

Oar Inadequate Knowledge
Of Free Enterprise

Dealers,*

,we

are

discussing1 this point, I believe
must start from the premise

paid;'

owners,

of .the

nation's

industrial

Inc.

HAnover 2-9290

plant, the better. With
this, I am sure, there can be no

quarrel.
world;

as

jwejiave

We are proving to the
I indicated earlier, that

a way

of placing

owper-

the greatest good for the greatest
number, and we proceed toward
new capital needed
by industry it without fear of abandoning old
for growth. In 1952, industry in ideas or trying new ones. We are
the United States invested 27x2. not afraid-to question the rightbillion dollars.in new plant and ness of what we have or to- admit
have

become

die

income

one

of the principal sources of the

groups

Volume 177

Number 5192

.

.

The Commercial and Financial Chronicle

.

(595)
that

should do

we

what

have

we

more

been

less of

or

loss

doing.

We
risks, regardless of the odds,
when the outcome means
strength¬
ening the things we believe in.
And we keep before us the ideals
of
justice and freedom.
These
things are just as workable in

WideningMaikeisforMutualFunds

take

the world of business and

they

as

the

They

are

I

reason,

a

am

large part
sure, why

of

of

we

have achieved the kind of capital¬
ism we have in America
today—
the

kind

which

socialism
and

its

if

set

we

1

X_

x_

strengthen
and

common

1941

sales of

shares

new

by

3%; semiskilled and unskilled
workers, 1%. With the exception

job.

at

the

end

of administrative

ly

workers

holdings

$4

an

Witter

nounced

and

that

Co.,

Alfred

Charles

been

&

E.

admitted

have

Marsella

E.

1941.

Marsella

have

general

part-

as

billion,

800%

m

is

increase
an

b

o

for

cause

tance

of

be

a

the

the
Nathaii Belfer'

potential

In

mous.

1952

is

personal

ings of individuals
$20 billion. Thus,

Alfred E. Marsella

R.

Stanley. Dollar

and R. Stanley Dollar and
William Cavalier, Jr., have been
admitted
as
limited - partners.

Shirley Houghton has retired

.

sav¬

close

limited partner.
Alfred E. Marsella,

though

even

fice, has

been

with

Dean

& Co. since 1931 and
the

has been in

,

versity of California, he was for¬
merly manager of the Fresno of¬
Charles
of

to 1947.

Marsella, a brother
Alfred Marsella, has been with

8c

Co.

since

work

for

1933.

the

Dean

He

firm

Witter

started

as

to

board

a

marker and in 1947

was

ed manager.

born in Fres¬

no

He

was

and attended schools

appoint¬

there, in¬

cluding Fresno State. College, and
is a graduate of the
University of
California.
*

R. Stanley Dollar, President; of
The Robert Dollar Co. and Glqbe

Wireless, Ltd.,

comes

from

fa¬

a

mous

shipping family.
He for¬
merly headed the Dollar Steamship

By

E

and

mutual

share

through
funds.

A

ownership

cupation reveals
facts.

medium

of

preferred

the ideal

the

stocks

medium.

same

individ-

assets

of

pre-

benefit

of

them

wisely.

mutual

a

form
An

ideal

for

income

taxes

because

Steady

of

heavier

important contributing

are

should ; be
sales

ex-

able

because

of

awareness

to
of

1

expand

growing
advantages of

equity investment.
One final statistical fact will be
of

interest.

Federal

handle

to

Most

other

fund

technical

properly,

with

its ad-

that they had no plans for the use

the

investment

of

for

investment trust is the

investment medium for

the

money

bonds maturing in a two-year pe-

riod,

those

undecided

individuals
about

the

an

who

are

of

the

use

funds

they will receive
important source for

It is still necessary, however, to
these groups on the wisdom

sell

some

linger

of
oc¬

of

and

on

undoubtedly

by

1929

in

many

believe

procedure for them.
historical

doubts
and

will

individuals
that an in-

To

and

require

cautious

ernment

major

channel

individ-

1

.

ships, until he. and his
,

■

r

,

,

.

as„

,

■

sociates transferred control of the

ever,.they should be
market; for
shares.*

An

obyious.

an

thesale

of

industry.

Offers Pa. RR. Gtfs.
A

group
headed
by
Halsey,
& Co., Inc., on Feb. 4 of¬

Stuart

fered

$4,800,000 Pennsylvania
L.:'
AA
J„inm.nA

paiirft„j

Railroad Series AA 3% equipment
trust

certificates, which will ma¬
$320,000 annually March If

ture
1Q(U

.

Marrh

i

certificates
2 35%

individual

who

oriced to vield-

8j5% depending

tQ

his suit to regain.the
*

.

r

xu

il-

x

stock of-the

coBtfolling;

an

have

these

Th

.

.

.

b

secured

-

„

steamship line from

the

Maritime

case

gained nationwide fame and

after

was

"
terms accept-

-

.

,

recently; settled

on

able to the Dollar interests.
William

Csrealicr, Jr., is

uate of the

ma,

his

Law

bar

February,

1951.

American

Trust

standard

p

'

.

gauee

..

r a

locomotives,
flat

cars,

estimated to cost $12,040,000.

1,065 box cars,
200 gondola

and

cars,

Issuance of the certiflcates is sub¬

ject to authorization by the Inter¬
state Commerce Commission.

Also

•

ing

participating in the offer¬

R. W. Pressprich & Co.;
Baxter, Williams & Co.; Freeman
&

are:

Co.; Gregory & Son; Ira Haupt

r^.y.

j'

w

'

Allln0is uo' wm-

F

Poi]nok

.He

was.

Company

in

Murphy Co. Admits
On

February

11

Vincent

with

until

now asso¬

liam
Stock

*

in

He is the

Oakland,

son

of Wil¬

Cavalier, whose New York
Exchange firm consolidated

Data

the

on

distribution

Taleott, Potter Admits

cam-

suffered

Mutual funds

a

have

enjoyed

an

Talcott,

Potter

&

Co.,

Mr.

Cavalier, r Sr.,

bers of the

New

York

ary

16 will admit J. Preston Cul-

len

to

limited

partnership in the

firm.

of record only and is neither

an

offer

to

sell

nor

a

are

offered

as- a

speculation.
January 30, 1933

Standard

.

-

Sulphur Company

owners

cent of administrative

/

Price $1.00 per

was

a

share

executives

and 19% of operating supervisory
officials are shareholders.
These
are

groups

which

one

would

Copies of the Prospectus

ex¬

pect to be sophisticated in finan¬
cial matters because of their posi¬

I

„

as are

may

be obtained from such of the undersigned

registered dealers in securities in this Slate.

tions in the business world. Share¬

holdings by

some

other

occupa-

fessional persons, 13%; merchants;
nerchants;

limited partner-of Dean Witter &

10%; clerical workers, 8%

Cq. until his death in 1945.

dee
workers^ 4%; public service work-




matter

Gearhart & Otis, Inc.

skilled

F. L. Rossmann & Co.
120 BROADWAY

45 NASSAU STREET

x:.

NEW YORK. N.Y.

I

j

'

East

meniand Mid¬

west Stock Exchanges, on Febru¬

1,250,000 Sharer

With Dean Witter & Co on Sept;
4^ tional groups are as follows: pro1940.

a

41

42nd Street, New York City,

of

by
occupational
groups should also be of interest
to mutual funds.
Forty-five per

E.

to part-

change.

;
share

ro

Co.

_

Pension funds, which are accumulating assets at the rate of
emotional over $2 billion a year, and trade
extensive unions, which have assets of ap-

<•

ap-

il

™10c* & uo.,

Inc., and McMaster Hutchinson &

t

segments of

t

200

As Markets

posi.-.

special

a

younger

d

9nn

ing

;'aNEW: ISSUE

purchase, more ^shares.
may be desirable for; mu-.

tual funds to make

r 0 a

horsepower diesel-electric switch¬

Common Stock
He

examinations

Hanegan

California.

Thus it

a

i i

ng Of 1

.

grad- the population who to date have

a

ciated with the law firm of Schoe&

increases, however, he is in

peal to the

School.

September, 1951, and is,
field

may-be
moderate;

University of

Hastings

passed

a

Commission.; The J.puml^r pi shares,--. As his income-

six-years of litigation.
...

abie to purchase only

bv

„

bond- Sculling will be admitted

.

These securities*

.

yan5a»s of ownership;,of mutual. v
fund shares while young

on

maturity.

<

•.

mission...In-1945,Mr. Dollar began: becomes acquainted with the ad-

inplncivp

iQfifi

are

solicitation of offers to buy any of these securities. The offering is made only by the Prospectus.

;

become

Halsey, Stuart Group

The

Pension and Trade Union Funds

or

Thin advertisement? appears as

t

mutual;

In the

expanding and pro¬

an

ductive American

have Ms*- income -. and*, re-: /y.
sources than older people. How- *

line in 1938 to the Maritime
Com-. fund

of

group

for the capital re¬

Line,-Which operated .16. large pas-v^bjy
senger

I"

_

diversified

a

source

quired by

be
invest-

overcome

educational

bonds

to

•

may

proximately $1 billion, may also
paign. The fact that holders of be important new sources for incash, savings accounts and Gov- vestment in mutual funds.

they prob-

in

many

serve

•

future mutual funds may

savings accounts is still the safest
these

grow

stockhold¬

equities.

vestment in Government bonds

30-39, 4.8% own
stock; 40-49, 6.6%; 50-59, 10.8%,
and 60 years of age and over 9.1%.
Obviously the advantages of share
ownership have not been made
known to people in the younger

of

holders through inflation may be nership in Murphy & Company, 54
an important factor encouraging pjne street, New York City memprobably still them to invest in equities,
bers of the New York Stock Ex¬

investment

Memories

losses sustained

can

-i

into

Reserve

ings bonds maturing in 1952 and
1953
amounts
to
$3,081,000,000
and $6,229,000,000,
respectively,
Thirty-two per cent of those owning savings bonds which will mature in 1952 and 1953 indicated
of

number

x_

w

The

Obviously,
Mutual

companies and industries.

their

Broadening Investment in Equities ment in mutual fund shares.

of

•

_

uals

this

the

and

the investment of

1949, in 1952, 19%
equity

depreciation of the dollar through
inflation and the increased need

mutual

small investor.

stock.

age own

are

the

groups,
however,
to obtain information

unable

them.

In the age group

age groups. To be sure,

stock

in

can

ownership

to enable

wisest

Less than 1 % of individuals

under 29 years

are

tap.

can

They

ers.

group preferred

common stock investment.

investment medium

are
many
more.
funds should continue to

uals
earning more than $7,500,
only 7% preferred common stock

of the

their

average

funds

tual

a

their

as

Of

with

individual. This
article has attempted to point out
a few of the markets which mu¬

19%

which they would
diversification and continuous su- receive from the
maturing bonds.
pervision would appear to be the With over $9 billion of savings

interesting

some

un-

vantages of careful selection, wise

of

breakdown

by age and

who

ones

affairs

Thus

Americans

the

shareholders

probably lack the
capacity to evaluate it

do not appear to be avid purchas¬
ers of stocks either
directly or in¬

directly

are

for

—

1949; in 1952,

common

investment

fund

mutual

funds

sur

enough factors in this trend. Mutual funds

representation

and

one-fourth

bonds.

to

from

are

New

1,500,000
startling
con-

accounts,

Series

fac-

many

shares." Administrative

their

trast two-thirds of the population
have life insurance, one-third have
own

are

occupational

in the United States.

shareholders.

of

mation

funds have only

savings

E.

the Fresno office of

mutual

their

of

owners

Mutual

emphasis on diversification and
professional constant supervision

_

operating officials Board has made a survey of ownare in a
position where they can ers of maturing Government savobtain sufficient corporate infor- ings bonds.
The amount of sav-

This is only 4.2% of the popula¬
tion. One hundred and forty-four

banking and securities busi¬

fice from 1931

owners

preferred

in

shares.

ecutives: and

Exchange reveals that
approximately 6,500,000

share

Witter

ness
since 1926.
A
graduate of
Fresno State College and the Uni¬

still

untapped market for
the sale of mutual fund shares.

are

reluc-

most

vast

there

past

fund

an

York Stock

of the firm's New York of¬

ager

they

Brookings Institution for the
Sales Man¬

this

Interestingly

cisely the

survey of stock ownership
in the United States made
by the

general partner and has become

a

for

There

little

roster

to

The

as

a

a

invest¬

preferences

were

investment

potential

the

major." deterrants.

very

accounted for only 3 Vz % of the
savings done by individuals in the
year.
It is clear that there still
exists

the

stocks

mon

investment in
accounts

of

ownership.

enor¬

net

came

1952,

ners,

en-

those groups who at present have

still

? sales of mutual funds were at
1 all-time high v in
:

in

tors involved, of
course, but
doubtedly fear and ignorance

1

How¬

realized

that

savings

enterprise?

it should

ever,

'

tu

m u

a

This

shares in American corporate

own

sponsors

funds.

in

growth in the past ten
However, they have only
1,500,000 stockholders and have
merely scratched the surface of

there

to be

appears

interest

of

enormous

years.

overwhelming ma- investment.
There
thus appears
jority of the American public to to be an increased interest in

re¬

managers

and

and

What

us

joicing among
the

be

to

appear

decade.

and

io

v

not

substantial increases in in-

come

tremendous

a

do

spite of the fact that both blue

joyed

of

suitable

a

equities.. The Federal Re¬

of investment
"

Vey
.

and white collar workers have

since
This

is

Board recently made a

serve

„

popular form of investment.

increase of

an¬

ownership

a---x—

approximate¬

Admits Four Partners

^

28%

executives, su- various income
groups.
In 1949
officials,
professional
only 2% of individuals who earned
and
merchants,
share more than
$3,000 stated that corn-

pervisory

of

were

1952

4- J„.

indi-

shares,

shares

increased

an

^

individual

Fortunately there

ers,

lirnr-n

study

those

medium
for
the
attainment
these two objectives.

markets for investment

new

of

owned

fund

ment in

mutual funds were only $53,000,finn
in
CilCtCi
C00, in 1 Q^9 -fVlXltr were over $700,1952 they
000,000.
Assets of mutual funds

our

Dean Witter & Go.
Dean

mutual

trust shares.
In

*-l-

the

average

but, in indicating increased
stocks, suggests pension and

important

as

aversion

overcome

Brookings
that

bcause of the higher income yields
that
were
obtainable.
For
the

confident

am

minds

our

XI

hearts to

trade union funds

to

who

acquired them because of a desire
for appreciation in value and 22%

untapped market for this

necessary

equities,

of benefit

spread

responsibility. I

to

institutional interest in

beyond

gone

cafi maintain it and

we

it

in

has

investors

many

vast

a

group

The

indicated

viduals

Pennsylvania State College

shareholders, there still exists
of securities. Says it is

in politics and govern¬

are

ment.

also

Prof. Belfer maintains, despite
rapid growth of mutual funds'

industry

purchasing power of al50% may help to modify the
deep-rooted fear of investment in
equities.

By NATHAN BELFEE
Department of Economics and Commerce
The

in

most

19

NEW YORK. N

Y.

The Commercial and Financial Chronicle

if fj94},

13

effect. High
materially
weakened the force of the main
its

disinflationary

taxation

British Crusade

has

Business

thus

Survey Committee of the National Association of
Purchasing Agents, headed by Robert C. Swanton, says
increased confidence since election is countered
by more com¬
petition and a normal give-and-take of supply and demand.

in the armory of classical
monetary policy.

Against High Taxes

convincing- arguihents. What
is amazing is that those who put
it forward waited until 1952-53,

less

A composite opinion of purchas¬
though their arguments were ing agents who comprise the Na¬
tional Association of Purchasing
equally sound years earlier. How¬
ever, jit is better late than never. Agents Business Survey Commit¬
Possibly the combined weight of tee, whose
all the arguments may result in Chairman is
the realization of the fact that for Robert C.

widespread clamor in Britaiit for tax reductions,
due largely to ctiange in
inflation. Cites opinions
executives that high taxation is impeding British

Commenting

on

British

investment both at home and abroad.

Few subjects resistance on the part of the mil-* the present the. Welfare State has Swanton,
their
have received more attention in lions of beneficiaries and
progressed further than what, our Director of
recent months in Britain than the political representatives.
On the' economy can stand without having Purchases,
high level of taxation. It is hardly other hand until recently the tax¬ to bear a cHppling burden of tax¬ Win ch ester
payer bore
his crushing burden ation. Beyond doubt the ultimate
possible now¬
Repe a t ing
with such a degree of docility that
adays to open
end must be a further develop¬ Arms Com¬
there was little if any political
a' newspaper
ment of the Welfare State. For the
pany-Division
inducement for any Government'
without compresent,, however, it is* arguable of Olin Industo make real effort to reduce the:
mg
across
that a'"reversal of the trend to
tries, Inc.,
burden at the cost of incurring
some
argu¬
some
moderate^ extent is called New
Haven,
ments in favor
unpopularity among beneficiaries for by the existing situation. A
Connecticut,
under the Welfare State.
of
a
drastic
reduction of taxation in Britain
indicates that
reduction of
Why was it then that sometime * is an imperative'necessity. In spite
there
is a
taxes.
Econo¬
during 1952—the change was so of s.uch reduction it should be
general feelmists argue
gradual that it would be impossi¬
Robert C. Swanton
possible to maintain social service' i n
g of i nble to fix a date for it—the pa-*
against high
charges at a reasonably high level
creased confi¬
tience of taxpayers, came to an.
taxation in the
and later to increase them even
dence since the election, and this
end? Although their attitude is_
a c ademic
above theij* present level. This
has been translated into some¬
still essentially law-abiding they"
way,
while
should be, done, however, not out
are
bankers
and
evidently determined to ino-1 of the proceeds of ruinous tax¬ thing more concrete than hopeful
bilize public opinion and tb force
businessmen
optimism. Nothing of boom pro¬
ation, but out of an increase of
Dr. Paul Einzig
the Government by all constitu¬
portions is anticipated, or even
put. forward
productivity.
tional means at their disposal to
an
immense
booihlet, according to the survey,:
History may repeat itself. In but
a steady movement is fore-,
Variety of practical arguments. In pay more attention to their griev- "
past centuries, from the days of
ances. Perhaps they realized that
the new year the heavy guns of
seen, with sustained good busi¬
the Magna Carta to the days of
British industry opened fire in the' so long as all pressure Was cbm-:
ness} at least tot the near term of.
John Hampdbn's refusal to pay
form of a joint memorandum by ing from one side the Weight of
three to four months/New orders,
Ship Money to Charles I, it was
the Federation of British IndUs-; argument from the point of view
are
up,, but • backlogs
are eaten
the English' people's resistance to
tries and the National Union of of political, expediency Was all in'
into
by
increased
production.
oppressive taxation that put a
Manufacturers against high taxa-; favor of maintaining high tax¬
Prices are reported by the ma¬
limit to the despotism of kings.
lion. Few company chairmen iriiss» ation.
Quite possibly the mddern despot¬ jority as stable, showing a tend¬
The explanation of the change
a chance to indicate in their an¬
ism of a democracy that threatens ency to decline as selling intensity
nual addresses
to
shareholders' of attitude of taxpayers in 1952
stepped up arid competitionto degenerate into a system of is
meetings the way in which their was the change in the Govern¬
increases
the normal
give and
demagogy and forces the Govern¬
particular industries are handi¬ ment's monetary policy. So long
take of supply and demand. A
ment to live beyond the nation's
capped by the prohibitive level at as inflation continued Unabated it
means
may also be bhecked by healthy condition is expected to
which taxation
is being main¬ was comparatively basy for modi
the revival bf the old spirit of re¬ result if arid when controls are
tained nearly eight years after the employers arid employees to pass
Protective industrial
sistance amohg the long-suffering abandoned.
termination of hostilities in EU- on the burden of high taxation
inventories
continue
to
declirie
• «.**■
which Was eventually borne by taxpayers.
rope.
,
with the ready- availability of
the consumer. Even the majority
It is not surprising that such an
most materials. Employment in¬
of the latter had no
cause
for,
anti-taxation crusade should have
creased, both in pumber and a
developed at last. What is much complaining, because in their ca¬
lbnger work week. Silled Workers
pacity of wage-earners, profit
more surprising is that resistance
aro short. Productivity is better.
to
high taxation was virtually earners, etc., they were- a bib to*
Labor unrest is
easing. Buying
non-existant until quite recently. derive compensation fdr the rise,
Gearhart & Otis, Inc., and F. L.
policy is Within a harid-tO-mouth
It is true, there were occassional im the cost of living by bringing Rossman & Co. are offering "as a
to 90-day, range,
with predom¬
protests but there was no trace about yet another turn in the in-, speculation" 1,250,000 shares of inance in
the 30-to-60-day bracket.
of any nation-wide campaign such fiationary spiral. Everybody lived" common* stock (par 10 cents) at $1
According to the survey, indus¬
in a fool's paradise for years wnile
as
we
have been
per share.
experiencing
trialists, reviewing the year-end
Standard Sulphur Co. plans to
lately. The docility with Which wages, costs, prices were chasing
book balancing arid profit and loss
each other incessantly in an Up-,
the
British
spend approximately $450,000 of
taxpayer has been
statements, are taking a sharp
the net proceeds from ihe sale of
bearing his burden year after year ward direction.
look at the
is
profit position. There
indeed unprecedented in time
In 1952, Mr. Butler made an at¬ the stock in the construction of a
are
numerous
comments in the
of peace. Through his elected rep-' tempt to call a halt to this
process. small plapt on its leased property
resentatives he agreed during the Although
of about 8d0 £cres known as Da¬ January survey reports concerning
LONDON, Eng.

—

Standard Siilphilr Go.
Common Stk. Offered

he did nbt succeed en¬
tirely in checking inflation-, many mon Mound and located in Bra¬
Government should tax him to the sections of the
community were, zoria County, Texas, which is
bone in the interests of the war beginning to find it increasingly, about 50 miles from Houston, and
effort. But when the war Was- difficult to pass on to
somebody; in the purchasing of machinery

early

part

of

War that

the

the

pver taxation continued almost at else the burden of their taxation.
its wartime level. Indeed in some, They have become

actually

was

level.

The

raised

standard

rate of income tax has

only been
reduced frOm 50% to 47V2%. And
the

maximum

rate

remained

at

97%%. Death duties

and

equipment necessary for the
and operation of such a
more responsive to the
arguments plant.
It is estimated that the proposed
against high taxation.
Many weighty arguments have plant will have a daily capacity
in fact been put forward
recently Of 500,000 gallons of hot water £>&*
in
close
succession.
A
leading 24 hours and will be capable Of
shipping niagnate produced un¬ producing between 75 arid 100 tOris
answerable fabts and figures to of sulphur pfer day using what is

consequently,'

respects it
above that

erection

are actually
they were during
the war and the possibilities of prove that under the
present level known as the "Frasch Process"
lawfully evading, them through of taxation, shipping companies under ihe assumed mining condi¬
heeds of gifts before death have and
shipowners are unable to tions.

heavier

than

'

been

drastically curtailed.

maintain their

Since 1945, high taxation
longer served the purpose of
tional

defense

and

national

no

na¬
sur¬

fleets, let alone

ex¬

them. Those agitating in
favor of increased British Invest¬
ment in backward. parts
of the
pand

the

Welfare

with its National Hedlth
National

Insurance

benefits.

Those

expenses at Damon
Mound are estimated at $125,0Q0,
and additional expansion of the

projected

plant, if the situation
informed warrants, would result in further

received

more

than

on

they paid in

understandable grievance for such
misuse of their wartime patriotIsm. The hasty establishment of

a

costly social services after the War
created

would

the

immense
existence

first have to

be

vested
of

in¬

which

overcome

by any Government wanting to re¬
duce taxation

substantially. Even
attempt at curtailing
social benefits encountered strong
the

mildest




mat

balahbe bf

about

$140,000.

ihe«proceeds

The

from the

high taxation is destroying sav¬ sale of the stock will be used for
ings so that no capital is accumu¬ other corporate purposes.
balance lating that would be available for

hand those who paid considerably
more than they received had an

terests

reason

other

taxation naturally considered this
to be the right thing. On the other

has

creasb, for the simple

Service,

and

who

State

.

Operating

vival. For the most part it served Commonwealth were
Vie purpose of establishing and that there coulci be no sUch in-r outlays, of
jnaintaining

investment

either

at

home

Employment

even

Dr. Einzig points out movement is
British Government's policy against
of

other more or

There are many

Approaching Normalcy

Business

weapon

By PAUL EINZIG

Mason Bros. Adds

or

low

profits and high break-even

points, with the opinion expressed

leading, banker, Mr. A.
Ensor, Chief General Manager
of Lloyds Bank; pointed, out tecently that owing to high taxa¬
tion
the
higher intejest rates
charged by banks are largely in¬
effective. Their deterrent effect is

OAKLAND,
has

staff

Calif.

Mason

Bank

of

been

Building,

—

Lloyd

added

to

approaching a degree of
normalcy; management is opti¬
mistic

members

of

the

Exchange. Be

iricreased

this

seasonal

the

more

and

Still

reporting longer work weeks

additional
an

shifts in

unsatisfied

January.

demand

for

skilled and white collar workers.
Increased
noted.

defense

Labor

production

unrest

is

is

abating.

Productivity is better.
Buying Policy
The

future

commitment

continues

within

has

been

a

the

range

90-day

with

some

90

days.

There

decided

switjch from
column to 60 days,
previous 30-day buyers

up
to 60." A trend to
smaller orders placed more often

moving

is

noted,

Watch the

as

Purchasing

Agents

declining price indices,

intensive

selling efforts and eas¬
supply lines. Cautious opti¬
mism supports these policies.
ing

Southwestern P. S. Co.

Securities Offered
Dillon, Read & CO.
investment

banking

Inb.

hfeads

groups

which

yesterday (Feb. 4) offered for
public sale $12,000,000 first mort¬
gage bonds, 3%% series due 1978,
and 20,000 shares Of 4.60% cumu¬
lative preferred stock, par value
$100, of Southwestern Public Serv¬
ice Co., and is underwriting 293,462 shares of common stock of that
being offered through
subscription warrants to its com¬
mon stockholders.
Dillon, Read &:
Co. Inc. is also acting as dealermanager of a group of securities
dealers being formed to solicit the
company

exercise of the common stock sub¬

scription warrants.
The

bonds

f

>

priced at 101%
plus accrued interest and the pre¬
ferred stock is priced at $100 per
shafb plus accrued dividends. The
subscription warrants, which ex¬
pire on Feb. 17, evidence fights to
are

subscribe for the common stock at

$21.50 per sharfe, at the rate of one
share for each 12 shares held of
on Feb. 2, with the privil¬
bf subscribing for additional
shares, subject to allotment/if to¬
tal subscriptioris
exceed 293,462

record

ege

i

shares.

and

seniqr securities having been sold
privately to insurance companies.
Also, the firiancing Represents the

company's seventh consecutive an¬
mriny things can nual issrie of
rights to common
happen to charige the picture.
stockholders.
Proceeds of the present financ¬

Commodity Prices

is ing will be used by the company
for the construction of additions
more pronounfced in the January
ahd irriprovements to its properties
reports. Twice as many record
or to
repay bank loans obtained
lower quotations than higher. The
The

trend

lower

to

majority, howfever,

prices

change.

see no

A number Of OPS authorized in¬

the

fact

strained

that

by

indicating

a

advances

arfe

re¬

competition,
stronger buyers' mar¬
sharper

Commodities

influenced by
foreign markets show the greatest

ket.

J

Industrial,

,

purchased

matefial

inventories continue to decline at
same

for that purpose.
The company,

which is engaged
in the
generation,
trarismission, distribution, and sale
of electric eriCrgy, serving north¬
western Texas, (and portions of)
Oklahoma, and New Mexico, esti¬
mated, it Will sptend approximately
$23,400,000 for cdnstruetion dUririg
the^ fidcal year ending Aug. 31,
1953 including $12,900,000 for new
electric, generating facilities, and
$9,600,000 for transmission and

Reports mention principally

creases are listed.

Inventories

E.

have

reversing

trend of late December. There are

for

Brothers, Central about the

San Francisco Stock

conservative

but

cautious;

weakness.

the

month,

planned

is good,

(Special to The Financial Chronicle)

Burton

rolls

Pay

The present financing by the
capital ex¬
Southwestern company represents
penditure is for plant moderniza¬
tion to reduce costs, rather than the first public offering of its
bonds since 1945 and of its pre¬
for capacity expansion.
ferred stock since 1947, most of its
The concensus is that business

that, much

abroad. A

H.

Thursday, February 5, 1953

.

..

rate

as

in the past

three months. Seine stocks

are re¬

distribution! facilities.

William C. Orton

•was "formefly Tvith the First Cali¬ ported getting too low for com¬
William C. Orton, manager of
by the fact
that. thfe
fornia Company.
fortable Operation. There are very the unlisted trading department
greater part of the additioriai in¬
terest charged to prosperous busi¬
few
materials
critically
short. for Gude, Winmill & Co., New
Salomon Bros. Hutzler
ness, firms is in fact paid
York City, passed away suddenly
by the
Supply, is meeting demand in
Treasury, because it reduces their
at his home on February 1. Mr.
: * (Special to T'he Financial Chronicle) : t
many scarce items and catching
taxable profits. This means that
SAN FRANCISCO, Calif'. — LeOrton, who formerly conducted
the inconvenience caused by dear Grande W,
On the whole, his own investment business in
Colby is with Salomon up on others.
"Nf/kfir Vnflr
Rd
fif 550"P
money is not adequately offset by Bros. '& Hutzler, Buss Building,
delivery performance is better.

reduced

xxroc

PC

Volume 177

Number 5192




.

.

.

The Commercial and Financial Chronicle

(597 f

In

.

21

engineering achievements, in design; in sales, Philco refrig-

Bar and Cheese Keeper, made

erators, with the exclusive Dairy
the

big

in the home refrigerator industry in 1952.

news

Yes, Philco, climaxing 60 years of spectacular growth, adds
another milestone to its

still

leadership record by increasing its per¬

And, testifying to their

centage of industry sales by 40 percent,

overwhelming public acceptance, Philco Dairy Bar refrigerators in.
a

The demand for Philco

production

was

*

refrigerators has been

so

great thai;

maintained at full capacity throughout the year.,

To meet the continued heavy

Philco,

'

independent coast-to-coast survey were the three-to-one

recent

favorite of American Housewives.

dealer and

consumer

requirements,

part of its over-all expansion program, has

as

increased

significantly its 1953 production capacity for Philco Dairy
Bar

refrigerators.

when Philco first entered the field, Philco refrigera

Since 1939,

and designers have contributed major advances in

tion engineers
**

*'

11

*

"

■

y

\

J

* *

*

*

t

■1

* \'

•

'

^

*

*%

T

*

features, convenience, utility and values in electric refrigerators
for the home.

Philco

the first to introduce the horizontal

was

freezer to the industry,

which revolutionized refrigerator interior,

design. Advanced automatic defrost, the "Conservador" door
storage compartment, forerunner of
flexible interior storage, are among

the Philco Dairy Bar, and

the

many

other developments

by Philco engineers and designers that set new standards for
the entire industry.

;
'

"

.i.

tribution to refrigerator

of perfection in
'

v

■„

the

home

,

ever

development—establishing

*

,

standards
•

|

Philco

built.

The Philco tradition is

of the

new

the refrigeration of fresh and frozen foods for

with the

refrigerator

<

for 1953, Philco makes a revolutionary new con¬

And now,

"Automatic"—first fully automatic
•

a

,

tradition of leadership in all phase ;

company's broad range of activities. As in refrigerators, so m

television, radio, home freezers, room" air conditioners, electri;
ranges,

and in vital research and production for Government and

Industry, Philco is making notable contributions worthy of a leader

(558)

Continued

jrom first

bound to be more

are

quences

page

serious.

/

cities into suburbs. It is

family

terially. At present the

*

The soft goods industry, and no¬

tably the textile industry, cannot

will be.

claim that 1952-taken

.

»

political -/

international

good

was a

as

whole

a

;

Expenditures

Capital

year.

expenditures
in all
will
remain
large
throughout a greater portion of
Capital

1952

Great

a

Year

Boom

probability

By the end of 1952 the country
in

was

of

the»midst

the

of the

one

The careful estimates
the Department of Comand by others indicate that

year.,

made by

greatest booms that we ever had

merce

in

peacetime in the history of this
total capital expenditures by corcountry. I can prove this state¬
porations during 1953 will be
ment that we were in the midst of
only about 2 to 3% smaller than
the greatest boom by citing all
in
1952.
Even if they are 5%
kinds of figures, but let me cite
smaller, still capital expenditures
you just a few.
are bound to be large.
Disposable income, that is, net
in which the

*

particularly interested,

toward the end of the year was

$235 billion.
a half

-at the annual rate of

less than one and

We had

mfllipn people unemployed, which
indicates that ^ everybody willing
to work
could.find a job, and
unemployed.

were

Wages were

.

.inue to borrow as

the number of hours
worked per week at the end of
1952 was higher than at the end

high

end suddenly,

Jfrom

a

predictions.,1 Some people tell

ought to

one

us this, that we know from history
that every, major war was folof lowed by a major boom,. after

inquire carefully what effect television has on the buying habits,
of

only

not

also

but

men

know,. My

dont

I

women.

spe-

is not marketing. But I
merely know this: When I was a
ciality
young

which there was a major depression. There is no reason why this
should not happen after the pres-

particularly since this

and I courted young ent boom,
took them either to the boom has

man

ladies, I

theatre, if 1 had money* or to the
movies. A young lady had to be
dressed up and I had to buy a
new
tie. Now I notice that the

lasted longer than any
other boom. And if history is to
this effect we ought to analyze it
carefully.
I am of the opinion that a major

,

work:

only those, allergic to

that

believe

£as

Sl™re 1951 wehave witoessed a
rolling read just ment vJber
industry after the other reaches
Peak> ,goes down, .1
®.
-ventories and , then -comes back,
rolling readjustment,; ;wi1
continue during ,1953, brought
about by the increase in the productive capacity of the country,
and by the increased supply of

They will

will come-to7 an end.

goods available for consumption. -youngsters, including the oldsters, depression in the United States
sit-in front of the television set will not take place,, cannot take
As far as the construction in' All this indicates quite clearly
and look, and yon don't have to v place. Just because history proves
dustry: is concerned, in all prob- a highly competitive market, and
be dressed up
for that. I don't that every major war was folability it will operate in high therefore, while I believe we have
know to\what extent this is in-: lowed by a boom and a subsegear. .While.Jt.is true that fewer every,
reason' to be ^optimistic,
nomes
Will be erected, because while we have every reason. to, fluencing the buying habits of the/ quent depression, that is no proof
; A 1
> vthat this will happen - again? My
,here will be smaller formation of look forward With a great deal of people. *7'
I am not particularly worried':beUeft
a major .depression
t'amilies in 1953,.yet public works confidence, we also must realize
jught. to be on a larger scale that competition will be keen, over the fact that during the past cannot take place in the Uriited
few
than in 1952..'
\
perhaps keener than before. There
years
durable consumersv S^tes is based on these consideraWhether or not people will con-; will
be ; competition,
natural goods took a larger percentage of "ons, / _

income after taxes,

retailer is

different

productive

7; ductive capacity of this country

'

5,1953

Thursday, February

congested
The question that I raise is this:
it leads to If you agree;:with me that this
buying/ habits, which I boom some day. is bound. to come
deserve
your
careful to an end, what happens there;
: after? And here we hear all kinds

moves

the country is 50%
situation greater than is was at the end of study.
Third, I believe
1945. At the end of 1945 the procapacity of

.

.

.

y

city to a suburb that

,

.

quite pos-

..

the man or the not come*to an

when

that

sible

.

i(3) The productive capacity of
this country has increased ina-

lift

Financial Chronicle

The Commercial and

r

22

and

normal competition and new cornWhether petition. By normal competition

freely as they

lid in 1952 I don't know.

the

because

income,

dispqsable

there were no new cars

manufac¬

^ ^ur based on the. following
economy is a dynamic

economy,

facts: A sharp increase in popula¬

store will tured during the war, there was
tion. It has been estimated that
.irate with a
with
the
other,
one a great pent-up demand for all
during the present, decade the
of 1951.
as
^
yet. But,: be that as it may, manufacturer manufacturing ap- kinds of durable goods, and it was
All these figures—and I could
jased on a careful analysis of all parel will compete with the other, to be expected that the moment Population in the United States
will increase by 24 million people,
cite
many
more—prove that at the forces operating in the econ- And by the new competition I durable
goods
became
more whereas
during the decade 1940the end of 1952 the country was in omy at present, one is justified
mean new products will appear on
plentiful they would absorb a 1950 the
population increased at
the midst of a great peacetime .n reaching
the conclusion that the market.. They will compete larger percentage of the dispos¬
the annual rate of
government will op- I mean
deficit we don't know compete

the

not

)X

that

one

1

,

1

*■

?

boom.

What

about?

If

will

we

The

•

*

■

brought this boom
this question

have

also

kind

of

At the same time

of

was

not take it
may

rosy

on

by

It

be-

Certain maladjustments are

to

creep

that

importance
overlook
them.

utmost

the

large volume of construction,

a

don t

we

These

All these weaknesses
very
briefly stated
purchasing are:
power, and while the people saVOd
(1) Prices of commodities, noconsiderable amounts during the 'ably sensitive commodities, raw
year, they were also free in their materials, and farm products are
weak.
In
a
spending and business is good.
period
when the
homes

others.

all

and

factors

generated

is operating at almost
that the Federal Government op¬ capacity, when there is practically
erated in part with a deficit, bor¬ full employment and wages are
rowed additional
money
prima¬ higher than ever before, when the
sees
commodity
rily from the banks, thereby cre¬ businessman
ated
additional
deposits. " The prices weak he should consider it
To this should be added the fact

economy

,

boom

also stimulated in

was

by the fact that

private

ing,

mortgages,

notably

on

credit, Was

sumer

level.

/

on

it

sign of weakness and watch
Should,
during the second

of this year commodity
prices still be weak, then you will
know that it is time to pull in

high

*

.

a

quarter

con¬

very

a

as

part
borrow¬

horns, that this may forecast
tinue, business activity is bound something which the economists
to remain at a high level. There¬ early in the year did not call to
So

long

fore,

one

best

of

as

has

these

your

con¬

analyze to the
ability how long

to

one's

these forces

forces

•"

attention.

your

(2) We cannot overlook the fact

last, when they that the prosperity of 1952 was at
an
end, and what least in part based on a huge inwill happen when these forces fi¬ crease in the private debt.
Mortnally come to an end..
v
gage • indebtedness increased perMilitary
expenditures
in
all centagewise faster than the gross
national product and the disposprobability during the calendar
will

will

to

come

will

downP Price wars

lying

develop, from which the re-

tailer

benefit or suffer, dehow he can handle his

may

pending on
affajrs
j stated

mQment

g

that the

agQ

able income. This to me

which

prevailed

did

1952.

in

not

prosperity
In

the

soft goods industries, and notably

textile

^e
^is

industry,

0f

middje

decline,

to

hegan

about the

from

business

1951

found

we

Sometime

situation.

the

activity

the

and

m'iddle

in

year

of 1951 to

the middle of '52 was one of
D00rest

vears

that

thp tpxtile

ff'at
a gr

y

the
in-

manvvears

u

j

T

.

.

.

T

?, J made a speech in which I
|
business activity is very good,
Some of the textile men smiled
me and a^ei7
was
over they

asked me

Where do

you *lv? that'.you talk about we
are tiaV1!pg great prosperity?"
Reasons for Soft Goods Declines
„

.

There is a reason why the soft
goods industries did not do so very

figures I believe

well* an<*

g*ve us
reason. If we take
the disposable income, that is,
the income of individuals net after

^^fs'
ij1 1939 about
.°f
disposable income of
individuals was used to buy apParel and shoes. Ten percent 1939
was.
a P°or year. During the
Peri°4 1946 to 1950, 10.5% of that
,

family will have

children per

on

census

the

Jv?? lncreas® in the number

*

of

population is increasing at the

annual

three

case.

income—and most people

live

a

on

if

and

old

modest income

anything is left, why, the

men

gets a new coat. Other-

the old

wise,

coat which doesn't

out of style. All these develop-

go

ments I believe have a bearing on
the distribution' of soft goods,
Let

ask

us

ourselves

next

the

question. This boom which pre¬
vails at present cannot last forever. You and I know nothing can
mili¬

last forever. Sooner or later

tary expenditures will reach peak
and then will decline. Sooner or

expenditures

capital

later

bound

to

are

al¬

because

decrease,

ready our productive

capacity is

great. Sooner or later foreign

the United States Govern¬

aid by

terially

commodities, homes, automo-

biles, all kinds of durable goods,
will come to an end. What hap¬
pens

creates

a

in

been

has

There

addition

(2) Nowadays American indus-

dustry spends money on
it

is

for

research

not

sake, it is research to

of

sums

when in-

research
its

own

produce, to

create new products. New products
been

have

will

created, new products

created,

be

these

and

new

products will come in competition
old

products,

and very

with

the

often

will destroy their value. In

a

dynamic economy,
created, old

are

new

values

values

are

destroyed.

Nobody can tell me that
will go down. Labor
economically
and
politically

(3)

money wages

is

powerful, although not as powerful as a few months ago. I do not
believe that there will be any re¬

duction in money wages. Competi¬

then?

tion,

Practical Conclusions
Let

a

tions-

ma¬

to an end. Sooner
the pent-up demand for

or come

later

all

decrease

to

bound

is

ment

or

rapidly
increasing
dynamic

are

apparel, and they ought try is spending huge
studied very carefully.
money on research, and

be

so

They

rapidly

A

geographic shift in population, and
there is in addition to this a strong
decentralization movement, all of
which will create dynamic condi-

notably
to

year

three and a half mil-

customers.

first

—

Last

million babies

economy,

then the wife,

the children,

come

1.7%.

half

a

were born,
2ion

of

rate

and

it from, increasing.
Where people live on a population

modest

1.4%; since the
in April, 1950

taken

was

buying habits. I know

ny years*

•

a pass¬

And, finally
I
believe it is
worthwhile examining what ef-

I remember towards the end of
1 nci

is

ing phase. I may be wrong.

my

ginning

brought about

was

The manu-

products.

soft goods the great
industries
share
in

into our econtotal capital expenditures by in¬
omy, certain weaknesses are bedustry during 1952 amounted to coming noticeable
and it is of
$27 billion.

older

put

Maladjustments
Maladjustments

has been estimated that

It

with

facturer of the older product

I believe it is

00

large

a

expenditures for capi¬

goods by industry, mining and

trade.

to

and to say all the econhave
predicted a good

glasses

brought about by

was

warranted

not

a

a

in

volume

.

brought about omists
continual but slow year and therefore we don t have
military expenditures. anything to worry about. That is

by

increase

1953 will be a good

the whole

on

year.

fairly good

a

what

to

as

boom

partly

tal

•

1953 will be.

year

It

**

answer

we

indication

' **

'

^

however,

cause

of

will be keen be¬

the increase in the pro¬

rephrase it, in order to

ductive capacity of the country.
not try¬
Competition will be further in¬
disposable income of individuals ing to be academic but rather creased
by added imports from
able income. Consumer indebted- was used to purchase apparel and
year 1953 will remain at a high
practical. We do know from the abroad, and by declining exports.
During * the first nine forces that operate in our economy
level.
All of us have seen the ness since May has increased at a shoes.
That in turn means that American
months of 1952, only 8.7% of the that so long as they operate busibudget estimates for 1952-53. Very very fast rate.
manu£acturers will endeavor to
little changes will be
You and I know that in a period disposable
made in
income was used to ness activity will remain at a high
estimates by the new Ad¬
ministration, and therefore we do

of

know

borrow

these

that

between

end of June

will either
level

or

What

the

military expenditures
remain

at the present

state, because

great

a

will

depend on the interna¬
political situation, and a

tional

great deal will depend on the at¬
titude of the new Administration.
As

far

litical

be

as

the

international
is

situation

today at what

are

on

or

po¬

concerned,
seems

dead center.

get better

to

we

me

to

It must either

it will get

worse.

I

don't know
and

what will take place,
therefore
the
retailer
Who

makes

of

1953

buyer
man,

in

good business people are opand they are willing to

timistic

As

more.

people borrow

they create additional purchasing

additional purmay somewhat increase.
chasing
power
created through
happens after June it is borrowing stimulates the boom

not easy to

deal

and

now

plans for the second
must

and

a

be

not

good

half

only a good
merchandise

he must also be a soothsayer
to anticipate:what
the

order




even

this

and

power,

The moment business

more.

y aPParel and shoes.

In other

w°rds, apparel and shoes fell be*dnc!
general procession. There
must be a reason why this is so.
If 1 were to tel1 Y°u 1 know ail
the reasons you wouldn't believfe
me>
I make merely a few observations which I hope will be

°f some interest to you.
pie are somewhat more pessiFirst, the buying habits of the
mistic, borrowing either remains American male are not what they

activity begins to taper off,

stable

likely
the

is

or

extent

same

it

before,

as

to

the

more

or

and
in borrowing which

tends

decrease

increased

not

peo-

to

go

down,

reduces

ally

purchasing power actuaccentuates the decline in

business activity.

Therefore,

we

must watch care-

indebtedness, will it
grow?

Should

it

continue to

continue at the

present rate, then we know
when

the

end

comes

the

that

conse-

level.
when

What
these

that I

we

am

don't

forces

will

know

what kind of hats

low"cost producers. That

e

turn means that there will be a

£

constant strong,demand for ma¬
taper off. Some people tell you in
chinery and equipment, and for
the sec6nd-half of the year,

people tell you

other

towards the end

new

labor-saving

means

devices.

That

that the factor of obsoles-

t s "srssa are; ss-1
portant role
occur

until

the beginning

of '54.

I tell you

the honest truth, I don't
know, because a great deal will

depend on the buying, spending
or could be based on
and saving habits of the people.
the
income
of
the
American
You have seen it in 1951. In
people. Apparently our fathers or
people of my generation—by that spite of the fact that business ac¬
I mean old men—paid a great deal tivity was at a high level, in spite
of the fact that the disposable inmore attention as to what kind of
wore,

^

is

begin to

should be

suits they

fully what is happening to private

me

indicate to you

come

of individuals was large,

in the past.

V

..

in the future than
The item of deprecia-

p

,

^

,

"on. dased °"f huge amount of
J?**', 05xPe years, m®de play a
"f®? will durm8
the last few
much

more

important role.

Dynamic Economy
These
which

the namic.

are

make

some
our

of

the

factors

economy

dy-

Add to this the important

who spend a large per- factor in which you are interested*
the retail level, decided namely that the standard of livto save and not to spend, and what ing of the people is high and it is
even buy a hat.. *
*
Second, in the last few years a can you do about women? Nothing, still increasing. To be sure, the
great decentralization; has V taken And that is the reason why I say standard of living of some people
place, away from the congested I, don't know when these forces in the higher income brackets has

they
they

wore,

wore.

or what kind of ties
Today youngsters don't

women,

centage

on

Volume 177/ Number 5192

•come

The Commercial and Financial Chronicle

..,

down, but the standard of them.

Jiving of most people in the coun¬
ty* is still increasing.
J A' high- standard of living creates^-a-- demand vfor
commodities

Wherty the

kinds

all

of

which* did not exist

standard

of

living of
the'people was low. Today wages,
teal- wages, are much, higher than
it -1940, vand they will
increase.;
The people will have the money
and' they will spend it. A rising
Standard of

Element in

living is

an

important

dynamic economy.

a

J Add1 to -what I have just told
you the, simple fact that the liquid
Savings in. the hands of the peo¬
ple are oyer $200 "billion. To be
.sure,, there are people who have
nothing, who are in debt. But
the solid citizenry of the United
■States is saving year after year.
The
liquid assets composed of
•Cash on hand, cash in the bank,
government securities, amount to
over $200 billion.
There is pur•chiasing power to be tapped; there
is purchasing power to be lured, if
you, offer what the people want. :
y So long as the people didn't
have the money it didn't make
■any difference what you offered
them.

(599)

If. they

should become predict? You must watch the in¬
then you will ternational political situation*...
know that the boom, will come to
(5) Changes in distribution will
an
end sooner than is generally
continue to take place. The cost of
expected at present. —:\ :
distribution is high. Great efforts
(4) The international political will be made to reduce the
cost of
situation is bound to play an im¬
distribution. This is now the case
portant role in economic-devel¬ and will be even more
so when
opments.
Right now we are at
competition becomes keener than
dead center. Should the interna¬
it is today. It is easy to say* "Re¬
tional political situation improve,
duce the cost of distribution," as
should the Korean -war come to
a
number of speakers have ad¬
an end, it Will hasten the end of
vised you to do. ft is one thing,
the boom. Not only will it lead
to advise and another thing to do.
to a -decline in military expend¬
Finally, no boom lasts forever.
itures, but also it will lead to a This boom too; will come to ah
decline in capital expenditures,
end. When it comes to an end that
and it may-lead to a situation
does not mark the beginning of a
where the people save more and
long, serious depression, accom¬
*
spend less.
panied by a sharp decline in
Should the international politi¬ prices
of
commodities, ■ accom¬
cal situation deteriorate, then the panied by large-scale unemploy¬
opposite will prevail.
Who can ment. A new pattern of business
more

,

apparent,

is evolving in the United
This

States. changes in the buying habits

pattern is based on the are taking place?
dynamics of our economy, and the
If I do all these things, I knew?
great changes which have taken I won't have to guess, that busi¬
new.

..

place in the past., ;

Yf'

■

finishing, I hope

gen¬

you

.

which I

not—you know. what
George Bernard Shaw once wrote,
am

With Mutual Fund Assoc*

"Those who know, do; those who

don't

(Special to The Financial CkboskjlO

know,- teach? ^ you know

what I

am.

If I were

I would not

man

myself

as

so

a

SAN

business¬

Mutual

1 would ask myself the question:
l

I

low-cost

a

a

low-cost

producer?

distributor?

i

Am
Am

that are

omy?

account

the

taking place in

Am

changes

our* econ¬

I fully aware of the Montgomery Street.
1

•

,

.

■■

M

never

the country so great as it is today.
Millions of Americans are pro¬
tected by

unemployment insurance.

Millions
tected
most

Americans

of

are

pro¬

by old-age pensions.

Al¬

daily

companies are estab¬
new pension funds, pro¬
purchasing power for the
when they reach the age
they {retire. This raises a

lishing
viding
■people
where

problem, the details of which

-.new

J believe ought to be interesting.
As time goes on, looking into
the

there

future,

will

be

more

younger people not working, more
older people not working. But the
older

for the Navy's

guns

Electronic controls for

guided missiles

will have the pur¬
I don't know what
buying habits of people who

the
are

Radar fire control systems

people

chasing

power.

retired will be.

thing for
order
If

to

that

be

to

messed

two

of

one

wit-

greatest social

this

country,

conclusion

the

depression

major

in

the fact

decades

the

in

reach

add

you

last

revolutions
will

some¬

now

ready.
this

all

the

That is

to analyze

you

in

you

that

the

a

United

•States cannot take place and will
mot take place.
'
In all probability, in my opin¬
ion, what is taking place in the

United

is that

States

a

pat¬

new

tern of business is developing.

I
pattern of business
by the following

ibelieve

this

will

marked

be

characteristics:
the

market

to

•come

an

■over, and

Business

(1)

whole will be

sellers'

end.

all

The
will

Before

assuming

on

(2)

lines

good.

in

1953

is

■ mm

worsening
in the international political sit¬
uation, the buyers' market will
no

;prevail in all lines.
petition will be very

haps keener than
■power

will
and

where

they

people

ever

(3)

Com¬

keen, per¬
before. The

have the

purchasing
they will spend it
think they can find

Radar

bombing systems for the Nation's planes

Automatic

firing controls for anti-aircraft guns

;good values.
Conclusion

What conclusions
from

all

that

this?

one

can

The
draw

can

one

draw

conclusions
very

the Bell

(1) The
midst of
that

we

year

one
ever

had in the

as

about

history of

a

boom

high level.

last,
re¬

these forces will last at
least during the first half of the
They

second

The Bell Telephone Laboratories,

upon

Department of Defense. (Four

to handle more than a

are

hundred projects for

shown above.) The projects cover

research, development, engineering and manufacture, including the very important

Sandia,

In all prob¬

ability
year.

manufacturing unit, have been called

the forces which

this

business activity is bound to
main at

ufoj...DeJjensk

System's research organization, and the Western Electric Company, its

the U. S.

(2) So long,

[brought

- ww

1952 ended in the

of the greatest booms

the country.

the

...

briefly

#re:

may
continue into
half of the year or

New Mexico,
the

project for the Atomic Energy Commission. Today,

unique skills, experience and teamwork of Bell System people

as

always,

are

at the service

of the Nation.

later.
'

S

in
'

(3) In spite of the great boom,
spite of the favorable general

outlook, certain;; weaknesses are
(developing. You cannot overlook




7

FRANCISCO, CaHfc—
Gerald E. Hall has become affHf*ated
with Weeden &
Co, Sltk

the economic security of

was

12Hp
,

SAN

-'before in the history of any coun¬

try

wftht

(Special to The Financial CheonicmO

•

I may look, but I
Today the people

ihave the money.
Add to this the fact that

CaKfe—

now

Weeden Adds to Staff

I
.

taking into

is

Fund

Associates^
Montgomery Street.

to what business will do;

Am

FRANCISCO,

Jacob. Goldschmidt

.much worry

value if I don't have the

a

.money.
Well,
•can't
buy."

.

ness
will be good because that
people will have the purchasing
tlemen
will
not
misunderstand power and if values are offered tat c>
me.
If I were a businessman, them, they will buy them.

In

"What good is a price, what

good is

291

TELL

TELE?HONE

SYSTEM

...

Local to

nerve,

the community.• Nationwide-nerve

the Nation.

I

M

If

•

•

(*

24

The Commercial and Financial Chronicle

(600)

several years,

Assistant to William
whose resignation was
recently announced.
Mr. Conroy
has assumed full charge of the In¬
stalment Loan Department, West¬
ern Division.
He joined the bank
in January of 1946 and later that
year
was
elected
as
Assistant
J.

News About Banks
CONSOLIDATIONS
NEW

BRANCHES

NEW

OFFICERS, ETC.

REVISED

Bankers

and

'

-

Cashier.

CAPITALIZATIONS

Vanden

Steven

Bergh,

formerly in charge of the Instal¬
Loan

ment

Rockville

reported having been prompted
Board of Directors of the Bank of by a question of a stockholder
the Manhattan Company of New brought before the Chase meeting.
Following

held

York

Baker, Chairman, announced that

The

%

9

9

J. Stewart

Jan. 29,

on

of the

meeting

the

the

at

Department

Centre office, has been

promoted to Assistant Cashier and
will

his

make

Franklin
Mr.

in

headquarters

Square

Assistant

as

to

Conroy.

Bayside

The

of

merger

9

16.

fective Jan.

for

stockholders

to

subscribe

share

of

stock

one

each

10

uled

new

to

of

held

shares

issued

be

record

sched¬

were

stockholders

to

30.

Jan.

on

for

The

sub¬

Trust

ers

Company's vote was cast
annual meeting, at its main
at 16 Wall Street; 80.54%

its

at

office

stockholders

its

of

were

repre¬

sented and affirmative action was

9

9

State

The

N.

Albany,

9

Bank

Y.

stockholders

of

is

at

Albany

its

offering

rights to subscribe to

scription warrants will expire at taken

101,725 additional shares of capi¬

3:00

tal

Eastern Standard Time

p.m.

17. The offering to stock¬

Feb.

on

holders is being underwritten

bfy

The First Boston Corporation and

other : underwriters,

have

who

agreed to purchase any shares of
stock not subscribed for by stock¬
holders.
the

Net operating earnings of

bank

the

for

calendar

year

1952, it is stated, amounted to $6,-

2,413,004 shares to 3,131
shares. At Bayside National's spe¬
cial

meeting, which was held at
main office at Bayside, Long

stock

basis

of

at

$25

share

a

share

one

the

on

for each three

Island,

the

action, and the usual permissions
the

of

the

regulatory authorities,

exercise

the warrants.

of

from

proceeds

Of the

of these

sale

the

The

hint

the

possibility of a
thought that the Bank's position

branches

should be made clear to all stock¬

holders

in

offering

sent

out

connection

in

underwriting
He

of

the

stated

in

any

with

has

Board

the

stock.

new

the

that

suggested

which

any

taken
The

ex¬

is announced

by Horace C. Flanigan, President.
Mason

is a graduate of Har¬
College, 1922, and attended

vard

Harvard

the

Graduate

School

Business Administration.

Trust

turers

of

October,
"Thereupon, after discussion, it member
unanimously:
sociates

He

of

"Resolved, that it has been and

time

the

at

of

the

the two companies

of

counsel

that

a

1950.
and

Mr.

is

Mason

Director

a

of

Crown Central Petroleum
*

Corp. of

*

9

the Board of Directors.

control would require the vote or
consent of the holders of all of its

Bank

Operations

the Main

formerly

final

de¬

association

Donald

retary

with

the

Department

at

3,716,000

3,367,000

9

9

Stockholders

Chairman of the Board. The board

of

the

and

Savings Bank, of Chi¬

on

advanced

F.

increase

the

capital stock

of

transfer

profits
Jan.

the

Cashier

Assistant

Vice-President;

$2,000,000 from undivided Thomson
capital account as of Assistant
issue to stockhold¬

ers

of record that date

of

stock

in

to

William

P.

Ken-;

Officer

Trust

from

Assistant

elected

was

Cashier.

All

officers

other

to

Robert

Vice-President.

Hurter

shares

new

proportion

from'

Assistant

to

nelly from Assistant Cashier to
to Assistant
Vice-President; Harry A.;

board

to

26 and to

Vice-Presi-,

dent; Robert G. Harrop, Jr.,

the

bank from $10,000,000 to $12,000,000.
A
further
resolution
was

authorizing

Assistant

from

Jr.,

Assistant

to

Officer,

Trust

irom

Vice-President; Mil¬

Darr,

Cashier

proposal of the bank's directors to

Brinkman

B.

Roger

Assistant

to

111. at their annual meeting
ton
Jan. 14, acted favorably on the

cago,

Vice-

Assistant

new

Presidents;

Harris

was

Trust

five

elected

9

were

their

reappointed. The board also de¬
Following the clared a semi-annual dividend of
stockholders' meeting, the direct¬
$1 per share, payable 50c per;
ors declared the stock dividend by
share on Jan. 20 to
shareholders^
voting to issue 20,000 new shares of record Jan.
16, and 50c per
of $100 par capital stock to stock¬
share payable April 15 to share¬
holders of record Jan.~26, on the
holders of record April 13.
The'
basis of one new share for each
board's action places the dividend
five shares held on that date.
It
on a $2 annual basis as
compared
was
arranged, where necessary, with the former annual rate of

holdings.

present

m

#

The

Executive

Bronx

Sec¬

Board

of

1948, has resigned his
the Borough civic or¬

with

Committee

for

this

committee

Swift

J.

and

Harold

were

as

9

9

as

on

Jan.

Chicago

the

13

Robert

Banking

following
Hunt

E.

ad¬

in

9

9

of

the

1942

Mich.

The

appointed

Sec¬

and

the

Budget in
at

Washing¬

as

Director

a

at

directors

Cleveland

of

Detroit,

thereupon
Thurber,v a

Director of the bank and its legal

counsel, Acting Chairman of the

Vice-Prggidents were Board, in which
capacity he has
Trust Company Norman
McClave,;Jf'.', Trust De¬ agreed to serve until Mr.
Dodge
has announced partment; Davis G. Kirby, Market
is released from his official duties

of Provident

man

in

ond Vice-President in 1948. Others

Mitchell, Chair¬

of

Administration

Bank,

in 1934, wasappointed As¬

K.

Director

where he the Board and
Division A. Mr. Hunt The
Detroit

Cashier

'

♦

induction

hower, Joseph M. Dodge resigned-,
effective Jan. 15, as Chairman of

the

Department

will head up

9

his

ton, to which post he was ap¬
pointed by President-elect Eisen-r

promo¬

was

Vice-President

to

9

for

prepare

new

announced

sistant
R.

To

.

9

Directors of The Northern Trust

of

13.

Searle.

G.

9

Company

President of the Bank effective

Jan.

H.

pany

Philadelphia,

that

appointed

stockholders at their annual Research and
Development; James in Washington. At that time Mr.
meeting on Jan. 20 elected De- L. Porter, Personnel, and John
Dodge is expected to return to
Long H. Monahan to the Board of A. Mattmiller, Operating. Maurice
the
bank as
Chairman.
At
the
Directors.
nancial

Mr.

is

Monahan

Vice-President

Provident

Mutual

Life

Fi¬

E.

the

of

Vice-President

Insurance

9

Graves

and

The election of J.

tive

Harry Schis-

Gary Black to the Execu¬

Committee

directors

of

the

board

of the Fidelity

Company

of

of

and De¬

Maryland

took

place at the monthly
meeting of the board on Jan. 21.
First

Now

Vice-President

Mr.

company,

Schisler

On

and

for

many

years

charge of its claim and
departments. He also is
ber

of

the

of

of

International

Insurance

the American

Mr. Black is
Lear

a

Black,

elected

the stockholders

of

retiring

Associa¬

Counsel

and

of the late Van-

of

H.

the

one,

by

from

for

shares

Sears-Community

$20

issuing

shares

now

reelected.

approved

split

pro¬

stock

reducing

two

$10

a

pat-

number

will

shares

par-

$20

the

The

par

share

$10

new

of

held.

outstanding

the

bank's

to

each

bank.

be

of

in¬

Bank, of Chicago at their creased from 375,000 to 750,000,,
meeting Jan^ 21 elected ;As indicated previously, Avhile the
G.

in

-»

to
for

w&S

the

of
were

annual

J.

mem¬

grandson

State

£

*

of

succeed

salvage
a

Directors

William

was

posal

$3,000,000 to $6,000,000 details of value
which - appeared in our issue of
and
*

Vice-President,
Director

a

Shareholders

two

meeting on
H.
Hewitt,

Charles

Executive

Trust Qo. approved

Nov. 27 page 2038.

shareholders'

20,

All other Directors

plans to increase its capital from

the

Bar Association.

son

a

19

Dec.

Northern

been

of

has

associated with the F. & D. since
1913

annual

Jan.

in the Trust Department.

dent

at

Baltimore has been announced by
B. H. Mercer, President. The ac¬
tion

from

Vice-President

to

Comptroller., Chapin Litten
named a Second Vice-Presi¬

was

the
ler and

advanced

was

9

9

comriiittee of the insurance section

Trade since

post

Trust

Other directors appointed to

Watervliet, Memands and Amster¬

Vice-Chairman of the publications

9

Darcy,

of

Directors'

1953.

to The Northern Trust Com¬

tion

Office.
•

were

pending

a

Mr.

Ward,
Senior Clerk, will con¬

his

transfer

73,000

profits.

suc¬

Armour, Jr., was elected to the'
newly created position of Vice-

35,519,000

Undivided

Board,

the

of

Chairman

H.

14,573,000

524,000

Loans

came

posit

tinue

the

14,603,000

35,162,000

esc.

vanced

located in

Albany, and the other branches
in Mechanicville, Johnstown,

a

the

Baltimore.

transfer of the Bank's business out
of
its
effective
ownership and

capital stock and that, if objection
made by any stockholder by
timely application to a court he
might obtain an injunction against

$48,355,000 $48,348,000
cash

securities..

State.

York
are

in

an

advice

ceeding in the latter title the late
Laurance
H.
Armour. Laurance,

are

the

independent insti¬
The election of Edgar A. Ward,
tution, as it has done for 154 Jr. as an Assistant Treasurer of
years, and should not be merged The Marine
Midland Trust Com¬
into or absorbed by any other
pany of New York was announced
banking ihstitution; and
on
Feb. 3 by James G. Blaine,
"Resolved, further, that, in view President, following a meeting of
of

New

was

of the Robert Morris As¬

was

businessas

Assistant Vice-Presi¬

an

of New York

pany

merger

is the judgment of the Board that
this
Bank
should
continue
in

&

tions:

Company of Philadelphia, with
employed by the Brooklyn Trust which
he has been associated since
and joined Manufac¬
be Company
1932.

tracts further state:

^

in

Three of its offices

and

position

resolutions."

resources

Trust

Market1

seven

St

dent of Manufacturers Trust Coitf-S

Mr.

to them

in any prospectus

stock and

new

as

States

main office and

a

'9

St

appointment of Charles J.

Mason

United

the

William

cate that "The Chairman said that

with

Total

of

Dec. 31, '51

dam.

Dec. 18, page 2339.
St

in

bank

maintains

Bank of the Manhattan Co. indi¬

several stockholders had discussed

COMPANY,

ILL.

of

percentage

per share on the 2,500,000 shares.
$26,000,000 in deposits, and some
According to the offering circular,
35,000 customers, to the books of
directors believe an annual divi¬
Bankers
Trust
Company,
and
dend rate of $1.60 per share can
brings the total of its offices in
be maintained on the increased
Greater New York to 17, seven of
number of shares to be outstand¬
which are in Queens. The merger
ingplans were noted in our issue of

22 meeting of the directors of the

TRUST

Dec. 31, '52

shares held on Jan. 29, 1953. War¬ to issue warrants for fractional
$1.80 per share.
9
9
9
stock¬ rants evidencing these subscrip¬ shares, subject to consolidation in¬
to full shares on or before Jan. 31,
holders present in person or by tion rights will expire at 2 p.m.
The Board of Directors of The
1954.
Fred
G.
EST on Feb. 20.
Salomon Bros.
Gurley was ap¬
proxy was 90.17%, and the vote
Millikin
National
Bank
of
De¬
Hutzler
will
purchase
any pointed Chairman, and Wayne A.
in favor of the merger was 57,708 &
catur, of Decatur, 111, announces
Johnston
Vice-Chairman
of
the
shares not subscribed for through
shares to 12 shares. Following this
the election of Everett E. Joynt
its

313,000, equal to $2.52 per share lour offices of The Bayside Na¬ shares, $1,017,250 will be added to
on the 2,500,000 shares of capital
tional Bank—all located in Queens capital, and the balance of $1,525,stock outstanding prior to the cur¬
875 will be added to surplus. The
County — opened for business on
rent offering. Dividends paid for
Feb. 2 as offices of Bankers Trust bank, which started business on
the year 1952 amounted to $1.45
Company. The move adds about Sept. 7, 1803, is the 11th oldest

Extract from minutes of the Jan.

AND

CHICAGO,

passed

9

*

the additional 250,000 shares of National
Bank
in
Bayside,
A
stock
dividend
of
$100,000
stock, issuance of which was ap¬ Borough of Queens, N. Y. with declared
by the Central National
proved by the stockholders at a the Bankers Trust Company of
Bank of Yonkers, N. Y. has re¬
special meeting Jan. 23, will be New York was approved by the
sulted in enlarging the bank's cap¬
offered to stockholders at $31 a stockholders
of
both
banks
at
ital from $400,000 to $500,000 ef¬
share. Subscription warrants en¬ meetings held on Jan. 28. Bank¬

titling

CHICAGO TITLE

Boyle,

1953

Thursday, February 5,

.

.

.

main
has

Director.

a

been

Mr.

active in civic affairs

side

and

in

of

will

be

re¬

and

shares

new

Di¬

dividend

is

and

dividends

in

determined

the

future

by prevailing

conditions, it is expected that the
will

of

carry

$1.60.

annual

an

Raymond

T.

Perring is President of the Detroit

the West

on

Park

Oak

rate

is

Dooley

years

many

to

who

Vice-President and

for

rector

President

Kohn

President but will

as

as

Booley
Louis

Bank.

f
9

River

9

9

r

Forest.
Directors also promote
August A. Busch, Jr., President
of
Anheuser-Busch
Joseph B. Taslitz, ^Assistant Vic*
Inc.,
was
President in char'gj^ of the reai elected a member of the board of
-

estate and

loan depart¬

consumer

directors

of

the

First

National

Vice-President
and Bank in St. Louis at the annual
elected
J.
M.
Deininger Vice- meeting of the bank's stockholders
President in charge of the Comp¬ on Jan. 13.
Mr. Busch, who has
ments,

to

cision, it has been and is the ganization to serve as a Vicejudgment of the Board that any President of Bronx
County Trust
such injunction would expose the

Crawford

business

of

damage,

and that these

stances,

as

of capital from $1,600,000 to $2,000,- with
Anheuser-Busch, Inc., in 1924
General
000, and its surplus from $1,400,- as
Superintendent.
In
pany, publishers of the Baltimore 000 to
$1,500,000 as a result of 1926 he was elected Second Vice"Sun"
and
"Evening Sun."
He which combined capital and sur¬ President and a member

make

it

mate

any

Company

the

a

Bank

to

serious

circum¬

practical

impossible

to

plan for such

matter,
consum¬

trans¬

a

fer."

New

York,

Borough beginning Feb.
made

time it

same

that
to

known

Mr.

Jan.

on

was

Darcy

Chairman

of

the

Chase

Na¬

Bronx

1, it

28.

the

also announced

the Board of Directors

frequently

was

At

had been elected

Bronx Board of Trade.

It may also be noted here that
John J. McCloy, who in January
succeeded Winthrop
W. Aldrich
as

of

the

was

of

The

Mr. Darcy

B

o a r

d's

spokesman before the City Plan¬
ning Commission and the Board
of

Estimate.

He

has

also

ap¬

tional Bank of New York, and
who presided at the annual meet¬

peared

ing of the

advance Borough improvements.

reported
time

Chase

as

that

the

Company
read

in

the

Jan.

having .said

the

negotiations
and

on

proposed

between

Bank
are

of

the

"quite

resolutions

27,

at

is

that

merger

the

Chase

Manhattan

dead
of the

as

I

bank

question," this statement it is




and

before

State

legislative

Congressional committees to

inal

Black,

of the orig¬

one

founders of

the

Fidelity and
and a nephew

Deposit Company,
of Harry C. Black, .Chairman

troller

Last

and

year

Auditing Divisions. been a St. Louis business leader
increased its for many years, began his career

the bank

the board of the A. S. Abell Com¬

has

been

a

of

member

D.'s board of directors
and

is

associated

as

the

F.

since

of

&

9

At

nounced

Reserve

aggregate

the

ijs

•£•

$3,500,000.
v

System

annual

shareholders'

board of directors and in

the

1946 he

became President of the company.
In
1942
Mr.
Bush was commis¬

meeting of La Salle National Bank sioned a Major in the U. S. Army
Department.
In July,
of Chicago, 111., presided over by Ordnance

9

The Board of Governors of the

Federal

now

business

a

partner with Harry C. Black.
3

plus

1947

an¬

John

C.

number

Wright,

President,

of directors

was

the

reduced

1945 he retired from active service

with the rank of Colonel.

Dec.

9
9
9
18 the appoint¬ from 15 to 13.
Harold Meidell,
The board of directors of City
Baker, President Executive Vice-P resident, was
of the Ohio University, at Athens, elected a director. David F. BremNational Bank & Trust Co., Kan¬
William T. Conroy of Wantagh Ohio, as a Director of the Cin¬ ner and Thomas J. Downs retired
sas City, Mo., elected the bank's
cinnati Branch of the Federal Re¬ from the board.
has been
All other direc¬

9

9

elected

on

ment of John C.

*

Assistant

Vice-

Bank

President of the Franklin National

serve

Bank

unexpired

of

Franklin

according
made

dent.

to

an

Square,

Y.

announcement

by Arthur T.
Mr.

N.

Roth, Presi¬

Conroy has been,

for

of

Cleveland

portion

ending Dec. 31,

of

for

the

the

tors

were

term

tors

of

re-elected.

the

bank

at

The

its

direc¬

organiza¬

1954. Mr. Baker
tional meeting acted as follows:
succeeds Ernest H. Hahne, Presi¬
dent, of the Miami University of President John C. Wright was
Oxford, Ohio, deceased.
given the additional responsibility

first

woman

officer

Miss

Jeanette

when
was

on

M.

Jan.

13,

Noland

named Assistant Cashier. Miss

Noland for

sistant

to

16 years

J.

M.

has been

Freeland,

as¬

Vice-

Number 5192

Volume 177

in

President

.

..

The Commercial and Financial Chronicle

of livestock

charge

loans at City National.
John W, Anderson, Vice-Presi¬
dent of Sheffield Steel

Corp., was
Jan. 13 elected to the ,board of

on

director^ of

Trust

City Natiohdl Bdnk &
of Kansas City.
Mr.

Co.,

Anderson has

with the

long been associated
industry and is a

steel

the First National will total $21,938,375, allocated, as follows: cap¬
ital, $7,000,000;.isirplus, $9,000,000;
undivided prifits, $3,063,383, and
reserve for contingencies (not in¬
cluding loan valuation reserve),
$2,174,992.
The neW stock issue
has been underwritten by a group
of

security dealers."

member of the Steel Products In¬
dustry Advisory Committee (NPA)
arid

the General. Steel
Advisory Committee to
PrJcerStabilizatiori. Mr.
sejrves on the -industrial

Industry
Office of
Andferso'n
Commit¬

*

*

its ^Financial Editor,
Charles B.
Forbes, the Miami
"Daily News"^recently reported
that The Central Bank & Trust
Company of M i a m i, Fla. an¬
Through

„

ted

the Chamber of Commerce

oi

the
prpmotion of two
Assistant VicerPresidents.
They
pre" Jetome* MX Ashman, Vice*
%
" $
President and Cashier, and R. D.
.Consolidation of the Joplin Na¬
Marzaine; Jr./Vice-President. Mr.
tional Bank & Trust Co. of Jop¬ Ashman
joined JSte, staff of the
lin, Mo. with the First National old American National Bank &
Bank of Jopliil,
became, effective Trust Company JiiiiMiamr in 1941
nounced

and is

active, in the. Kansas State
Chamber of Commerce.

is

follows:

as

Capital $6,000,000; tion

attorney,
and Charles
D.
member of the law
of
Eisenhower,
Hunter,

surplus $19,000,000 and undivided Hunter, Jr.,

profits $2,938,904, The board also
announced the following promo¬

firm

Elmer Hammell
With

Ramsdell & Duncan.

tions: From Assistant Vice-Presi-.

Taylor & Co.

CHICAGO, III.—Taylor & Co>
(formerly Detmer & Co.), 105"

dent to

Vice-President, Edward F.
Kircheri,
securities
department
and Henry L. Kaufmann, foreign
department.
Ralph
B.
Wells,
eastern representative of the bank
with headquarters in New York
City, was also named Vice-Presi¬

Hirsch 8z Co., 25 Broad Street,
New York City, members of the

them

dent.

New

charge of their

Albert de

fessional

of

Board

men

were

York

Sound National Bank

that

merly Of

Stock

Exchange,

Albert

de

Jong

an¬

for¬

Albert de Johg & Co.

(dissolved) has been admitted to
as a general partner.

elected to the

^Directors, of the Puget

South

With Hirsch ( Co.

nounce

Three Tacoma business and pro¬

Jong New

the firm

of Tacoma,

La

that

Salle

Elmer

become

Street,

W.

ciated

First

stock of

had

National

common

$400,000 while the Joplin

National Bank & Trust had
stock

com¬

bank took

tional.

over

J

'i

n

Trading
Department.
He

has

been

associated

with LaSalle

He

the

-joined

Central

&

*

%

v

is

Tenn.

announced,
the
been increased

having

Mobile, Ala. Were advanced to

of

..Enlargement of the capital of
the First National Bank of Jack¬
amount

Senior,, Vice-Presidents .by. the
bank directors- at their recent an¬
nual

meeting: Information to the
effect was contained in the Mobile

$300,000; of the "Press
Register"-of Jan. 14, which
was
brought also said in
part:
'/
about by a stock dividend, while
"The advancement of John D.
the further; $50,000 increase re¬ >
sulted from the sale of new stock. Terrell from Vice-President and
tCashier to Senior Vice-President
J
* {
#
frpm $200,000. to

addition,

$50,000

.

:The

stockholders of The Trust

Chmpany of Georgia, at Atlanta
at their 62nd annual

meeting ap¬

proved

the
recommendation
of
the Directors to increase the capi¬
tal of the company from $2,000,000 to

Over-

Cashier and James T.

and

bey from Vice-President to Senior
Vice-President Stopped

list

a

promotions .authorized
First National bpard

by

of
the,

•

"The directors' meeting

followed

the annual

fective by issuing a stock dividend

meeting of the bank's
shareholders aiwhich all directors

for

were

This will be ef¬

$4,000,000.

20,000; shares

share

for

and

on a basis of One
share now held

each

the

sets

by

from

transferring $2,000,000
surplus account to the
account. Upon the com¬

capital

vious associations

Mr. Marzaine Went

Bank in 1950.

pletion of the change, the com¬
pany's capital will bb $4,000,000
and the surplus will be $6,000,000;
The

increase is subject to ap^
proval by the Secretary of State,
and the State Superintendent of
Banks.

reelectedfcand a gain in as¬

was

reported..

"In other

prbfnotipns, A Danner

and "Charles E.

Frazer

vender were

sistant

advanced

and I

Frank

De-

Van

from As¬

Vice-Presidents

Presidents

Our

Officer.

Trust

W.

ing l7/8% issue for the%V\% certificate and the 1Vi% bopd will
beva very successful one with only minor attrition likely.- Accord¬
ing to reports, there will be a larger, turn in for the one-year cer¬
tificate \yith the 2
% rate; than for the ;21/2% bond. It seems as
though the smaller commercial banks will be the principal takers
.of the 2Y2% obligation. If this should be the case, with thfe 2Vz%
bond not having as much appeal to holders of the Feb. 15 certifi¬
cates, ds the one-year 2Vi% issue, the Treasury will not have ac¬
complished too much in extending maturities .
•
The better tone that has beeh evident in the government mar¬
_

ket, after the coupon rates and maturities of the refunding Obliga¬
was due in part to Some short-covering
and an improved demand for the outstanding intermediate tenn
obligations.
The longer-terms firmed because of some private
pension and trust account scale biiying.
The announcement by Treasury Secretary Humphrey of the
refunding terms for the certificates was only a mild surprise as'
far as the money markets were concerned. The fact that the in¬
formation about the refunding had been parcelled out in piece¬
meal fashion took much of the element of surprise out of the oper¬
ation. It had been expected, however, in some quarters that the
one year maturity might have a 2l/&% fate, instead of the 2Y4%
coupon. On the other hand, the five-year 10-months bond,with a
21/2% rate was in line with most expectations, even though there
were opinions that a six-year obligation would be part of the re¬
funding package.
tions Were made known

One-Yea* Issue Has Greater Appeal

new

M.

Assistant

Following a recent meet¬ Cashiers." *
^
ing of the Board of Directors of
tz*
#
the Trust Company of Georgia,
Promotions of four staff mem¬
Marshall B. Hall; President, an¬
bers of Republic National Bank of
nounced
the
promotion of the
Dallas, Texajs ,To higher positions
following:
Robert C. Mathews, were
annouiWed. recently by Fred
Jr., to Vice-President, Joel B. F.
Florence, .President of the
Kersey and Roland K. Weekley
Bank.
Those Selected to higher
to Assistant Vice-Presidents, and
positions in the bank at a meeting
B. M. Doster to Trust Officer.
of
the
Directors,
were
J.
W.
'
»
*
Denny, John W. Stovall, Jam.es W.
Plans for a $3,000,000 increase
Keay andiDaniel N. Liner. Mr.
in the capital fuhds of the First
DOnny and Mf. Stovall were pro¬
National Bank of Atlanta, Ga. moted from Assistant Vice-Presi¬
were aproVed by the stockholders
dents
to
Vke-Presidents.
Mr.

certificates that

are

as

part¬

a

Co.,

more

Attend Clerk's Dinner

well received by the money
indications that the exchange of the matur¬

The 21/4%' rate for the

were

& Co.

By JOHN T. CHIPPENDALE, JR.

markets and there are

Hammell

recently with Shillinglaw, Bolger

The sixth annual dinner of the

The Feb. 15 refunding has been

Drey

Moore

S.

on

Vice-

to

William

Sanford

Feeney and
were
named

Reporter

W.

Caswell 8c

of

ner

Assistant Cashier to Assist¬

from

ant

.

,.

Elmer

His pre¬

cago;

of

*

son,

Wash., at the bank's anniial stock¬

to American Na¬

$250,000. At the to Miami in 1949 from the Bank
date of the consolidation the en¬ of
Commerce, Newark, N. J,
He
larged First National Bank had a joined the First National staff and
capital stock of $1,000,000 in 50, moved to the Central Bank the
000 shares of common stock (par next
year.
X -•>.>
$20 each) surplus of $50,000 and
undivided profits of not less than
We learn that^yo Vice-Presi¬
$350,000.
dents of the Firsts National Bank
mon

has

with

Street trading
for the past 20
Robert C. Buell
holder's meeting, it is announced
years.
Mr.
by Reno Odlin, President. They,
Robert
C.
Buell, partner
in
Hammell is
are
W. P.
Gullander, Financial Robert C. Buell 8c
Co., Hartford,
currently an
Vice- President,
W eyerhaeuser
at the close of business Dec. 31
encT became an * Assistant Vice- TTmber Company; Edgar N. Eisen¬ Conn., passed away at the age of officer of the
under the charter and title of the President Of the.&First National
Bond Traders
hower, Tacoma tax and Corpora¬ 78 following a long illness.
First National
Bank
of
Joplin. Bank of Miami ...When the latter
Club of Chi¬
The

announce

Hamihell

asso-

being offered in

exchange for the Feb. 15 maturity had considerable appeal to the
larger commercial banks and many other financial institutions, as
well as corporations that are interested in short-term liquidity. It
is believed that the bulk of the exchanges of the Feb. 15 maturity

Americaji Stock Exchange; Floor

Association was held Jan.
Schwartz's Restaurant on,
Street.
Wally Weil; An?

Clerks
27

at

Broad

drews, PosnOr & Rothschild; Presi¬
dent of the group/announced that
150 members and guests were in

attendance.
John J. Mann, American Stock
Exchange Chairman, James - R.
Dyer,- Vice-Chairman of the, Ex¬
change,
Mortiiner
Landsberg,
former Board Chairman, David S.
Jackson, Exchange, Governor,
Jack Feinstein, former President
of the American Stock Exchange
Five
and
Twenty Club, Harry

Foshko,
ward

Exchange

Kelly,

of

the

Exchange.

Stock

American

Ed¬

member,

President

Em¬

ployees

Quarter

Bernard

Kamp„ President of Jhe

Century

Club,

Exchange's Reporters Association
and James
the

New

Mclntyre, representing
York

Stock

Exchange

Floor

Clerks

among

the guests of the associa¬

Association,

were

tion.

.

A1
&

/

Marks, Brickman, Landsberg

Co.,

was

Chairman of the affair,

•

••

.

•

«.•

•

•

■

at

their annual meeting on Jan.
13, in accordance with proposals

of

the

sue

directors

of Dec. 25,

noted in

is¬

our

Keay was elected

ier,

ring to the action of the stock¬
holders the Atlanta "Journal" of
Jan. 13 said in part:

-"James D. Robinson, Jr., Chair¬
man of the Board of the First Na¬

Assistant Cash¬

Mr jLiner

was
Assistant Trust Officer.

2518. Refer¬

page

and

elected

R. L. Tayloe, Vice-President in

charge of Sears, RoebUck 8c Co.'s
Southwestern Territory, was
elected n member of the Board
of Directors ojf Republic National

tional, said the increase in the in¬

Bank at the 33rd annual meeting
of the bank's stockholders, Presi7

stitution's

dent Florence;?announced.

additional
a* par

priced
share.

quoted

by

an

$10

a

at

the

and

$30

stock

a

is

at $36 a share bid and $38

a.share asked.

William

having

share

shareholders

Currently

be

will

"Jm

issue of 100,000

shares of stock

value of

to

funds

capital

represented

?

«.

Present sharehold¬

W:

Crocker, Chairman

of the board Of Cfofcker First Na¬

Bank of Sail frrahcisco, and

William
in

a

the

Pflueger, Vice-President,

joint report to stockholders at

annual meeting

held on Jan. 13,

er^, he said, will have prior sub¬

reported that.Joans, deposits and

scription rights to the

total

through Jan. 30,
one

share

of

six shares owned
•

stock

on

days.

for

each

Jan. 13.

"It is expected that

tion will be

stock

the basis of

on

new

new

the transac-

completed within 30

Then the capital funds of




year

certificates than a five-year
10-months bond. The 2i/2% bond, nonetheless, did have appeal to
the out-of-town commercial banks, with indications that these
institutions are going to be among the important takers of the bond
that is being offered in exchange for the Feb. 15 maturity.
It is
reported,, however, that not a few of these same banks are ex¬
changing the Feb. 15. certificates for the new one-year 2%s.
If a 2i/g% certificate had been offered instead of the 2 lA%
issue for refunding purposes, the smaller out-ofrtown commercial
banks would, haves gone in more heavily for the 23/2% bond. There
were also reports that switches were being made by some of the
country banks from other issues into the Feb. 15 certificates in
order to get the new 23/2% bond.
This kind of self-refunding,
however, was hot too sizable, according to indications.
of most of the holders of the maturing

Conflicting Views

new

resources of the bank reached

high

levels

during

1952.

Following met, stockholders' meeting, the directors authorized the
transfer

divided
new

of

$3,000,000

profits to

from

surplus.

un-

The

capital structure of the bank

on

Douglas Kent
Douglas

Kent, member of the
Exchange and a
partner in H. T. Carey, Joost &
Patrick, New York City/passed
away on January 23.
New York Stock

U. S. TREASURY

STATE

seems

to be many

MUNICIPAL

markets about the future pattern of

funds

will tend to decline

as

:

and

Rate Trend

conflicting ideas in the money
interest rate, and the Feb. 15
refunding with 2% s and 2V2S has not done much to clarify the
situation despite the use of higher coupon rates in meeting this
maturity. There are those who believe the demand for loanable
There still

SECURITIES

thO year goes along and, in their

opinion, this will mean easier money rates. Because of this feel¬
ing, there has been a tendency for these owners of the Feb. 15 cer¬
tificates to go more into the 2Vz% bond instead of the one-year
21/4% certificate; There appears to be considerable question in the
minds of these people as to whether future refundings are likely
the present one.
this type of reasoning there are those who
believe that higher interest rates; will be more evident in future
to be

tional

2%s. It is being pointed out that a one21/4% obligation is more compatible with the requirements

will go into the one-year

as

As

favorable

an

offset

as

to

,

operations of the Treasury and the current undertaking is the first
step in that direction. Accordingly, "they are making exchanges
of the Feb, 15 certificates into the one-year 21/4s in order to be in

position to take advantage of higher interest rates which
they believe to be in the making.
Although there is nothing definite about what Federal will
do with the holdings of the Feb. 15 certificates, the general feeling
seems to be that the Central Banks will exchange for the one-year
2^4% obligation. It would not be surprising, however, if some of
the 2VzS found their way into the portfolio of the Reserve Banks.
Pension funds and trust accounts, that is the private ones,
have, according to advices, been sellers again of the corporates
with the proceeds going into the longest ineligible obligations.
a

Aubrey G. Lantston
8c Cb.

better

;

INCORPORATED

15 BROAD ST., NEW YORK

$

WHitehaU 3-1200
231 So. ta Salle St.

45 Milk St.

CHICAGO 4

BOSTON 9

ST 2-9490

HA 6-6463

1

The Commercial and Financial Chronicle

Continued from

first

A Mess in the East

page

Federal Reserve and

ing

bank system
credit, the final

As to the

East, the previous Administration has got
us
into a real mess.
Bungling and incompetence have
placed an almost insoluble problem in the lap of the
Eisenhower regime. It is now
becoming evident that the

See It
We

As
warranted in

fcthe

this particular. We have since the end of
underwritten the future of Western Europe to the
of $30 billion. Secretary Dulles the other day put

tune

it into clear words.

"The

Western
there.

United

Europe

*

the end of the second World

War, almost $30 billion have
into Western Europe. If, however, there were no
chance, and that I just refuse to believe, but if it appeared
there, were no chance of getting effective unity, and if
gone

.

So far

-

Europe."
good, but the fact is,

so

that whether

writing

realize it

we

or

Atlantic to

our

sounder economic
or

divided,

able to stand

on

"We

not

it

or so

seems

to us,

have been under¬

we

power

seems

own

footing than is today the case.
of countries not willing or not

own

now

that

it

We realized, so it
supposed, that not one but at least two conditions
required if they were to stand helpfully against the

.

Tf

nhvinnc

io
is

It

as

somehow

owes

thein

to

potent individual initiative.

1
•

want some other social

I




to

here

the

stabilization

■

The real

nature ^of

Furthermore,

years.

t

t

become more acute

vigorous and successful.

is

the

continuaof

nros-

our

-

boom'and the logic of
a
stabilization program -will be
grasped only of we keep firmly
in mind the tri-partite character
of the
economic
process.
The

.

monetary,
heroie

that

fiscal,

market.

With

and

simplification,

one can

the inflationary

which
rived

have

we

from

been

three.

of

"stretch-out"

a

schedule

for

the1

program.

The

new

mobilization;
Administra-

tion is pledged to. continue and
extend both these sound policies,
While this is excellent as far as
it-- goes,

it

situation

living

say

in

de-

tertamed

does not

seem

to

based

is

conse¬

tion
i

other

in

sources:

spending

facilitated

the

in

indus-*

a

basic

two

even

.

peace-*

simultaneously.

developments of the last 25 years
haye

institutionalized,

nnmipnllv

ment 0f

v

the

pioneer

both

noliticallv

and

eco<*
tern*

a

impatienace native to
- stocks from which*

interpret th<r

They

g

_f„n sWav

Life"

of

/

and

the

FmninVment

th

declarations of the Employment

^ct af

jLnrivntinn* rvt
?

-

have to suffer the d ep

anoth^r reaA
bav®.be|~n ^d on the hig

4

...

thority by the incoming Admi s*
tration that they n®ed not lea?
sycb ar] eventuality. This declarst
tion raises questions too broad tq
be pursued here. One of-the majog
ones is whether that assurance
will

so

increase the intransigence

price inflaprivate market; and

1 leave to your own

*

pondering.
0.

.

-Perhaps, the other- maj.br on#,concerns the means by which thaj,*

can

by the optimists which
the assumption that

go

present

I

later

we

between

private
ever

'

ali along;,

line,-from the coal mine-to
the
beauty ^parlor: To getth^
economy working
again* ^peoplqn
must; be re-employed where they.

costume 1ewelry

-

plants and textile-

mil|s o{ New England by expand*
.
,
.
.
'
.
...

.

.

,

in£ Pubbc works m hydro-electrie
dams

in

the

far

West

or

slum

clearance in Detroit. There would
=

,

,

.

.

,

I have

be a tremendous drive for goverm*
n^erd:
take operative responsi*

time past that sooner or

bility for both the manufacture

continue
some

general, employ*-

be curtailed

the

,

for

all

at

will

ment

have been dis—employed. You can"*

on indefinitely at the
high
level
of
prices,
profits, wage escalation, and plant
we

becomes

not remedy unemployment in th#

Impasse and Impatience

the

make

me-

on

always threatened and frequently
involved actual deficits; second,
easy credit policies which, on the
one side,, implemented the abovementioned fiscal policies and on

enter-

to

en-

expansion of 1951 and 1952.

Federal

and

management

as?W»ged by the arrival of the cause of proper concern on bot^^
Federal Reserve System at accord sides of the collective bargainingwith the Treasury , and by the table and no less to every thought*
acceptance- by the Defense Es- ful citizen. It is this. If^XfiCSSgioA'

First,
which

lavish

We in

of

tide

pression of fear than I was in
1950 and most of ?511est infla--: promise is .to be made good. Her*tion get out of hand. My fears, I will suggest only one aspect of
bowever,
were, considerably the matter which seems to me *

^ee sub-processes involved may to justify the complacency
be
labelled
respectively

.

No 0ne was i°uder in his exr

tablishment

infla-

tionary

;

four

abatement*
the

Over against this, we miist place
jact tbat our peopie under the

,

gov-

tax

ideologies of in-*

the

labor fail

industries

character

in proportion as the Government's of either or both of the. parties
correct
« dealing,with. the. fiscal- Jbat the^han?^!(ffiacgftrt^ettlej .
°F?£l and monetary issues proves to be ments is materially reduced. That._
of the

neritv in the years iust ahead.
penty in the vears just ahead

foreign countries. If these peoples
organization less effective in pro-

quences, not expect us to make up the deficiencies.

arid

tion

right

threat

if

drastic-

more

stem

to

-

everfc

nf

in'

Uaehev!? That

greatest

financing socialism and

viding the necessaries to their members than free
prise, then they ought to be willing to take the

next

massive

as

be

to

would,

similar

a

settlement

ful

ernment

^

nHminiQ-

"reforms"—changes which
get in the way of effective production of goods and serv¬
ices needed, programs which
appear to rest upon the
naive notion that
plenty can be had without the exertion
required to produce it—-must take second place to vigorous
and

is

•

mlir-A

a

this country have grown tired of
various other reforms in

ic

there

permit continuance
„rnnn[1,

sometimes miscalled

effort

that

of

healthy-

a

remains

still

sufficient

dustrial

of

tures

the

and

system,

productivity of

recession

condoned by many feagovernment policy or

vances,

titv

mean an

large part of their livelihood, or that the strategic location of. the countries in
question is such that other peoples, thousands of miles,
away, must have their cooperation at any price in order
to keep communism at arms
length. It also means that

for

fnd rnStlv I imnroviS
nn?litvtW thl!
rtmrL'J

'

Abandonment of, the - apparent .notion: that somewhere,

economic

+w

obvious

rfhArn
rtodcKt ^ fhnctionaUy

peoples of West¬
Europe do what is necessary to establish their econ¬
omies upon a solid and
productive basis. This would
require, of course* at the very outset, a determination to

are

sharper
the fruits of

that ;

true

our

measures

necessity

is

that
they
supplemented
by

*

ern

one,

the

as

it

of de-

some

market. '► It

productivity will take place practice and aggravated by
and

While

security

taneous

result in wage advances more extent dealt with, during the past
rapid than producitivity advances, year or year and a half, whereas
with the resultant dangers either the third, that is the process of
of continued inflation or of im- market
adjustment,
has
been
pairment of management's ability dealt with in only fragmentary
to
provide jobs or to provide fashion. It constitutes, therefore,
workers with the most adequate the prime threat to continuation
equipment in those jobs.
.of our prosperity throughout the

.

independence. It would

pression.

the-

is

spiral

proved

even

an

capture

downward

progressive system ap- brakes to this process did not exist in 1929, ne>
such
palliatives can be an ac+ ceptable alternative to the spon-f ;

6

The other is that these

their economic

familiar

brief.

and

described

have

that

our man¬

.

that

moderate

I

relative relief from tax payments-- >

materials."
page

I find it hardi
with those who.
recession that might
the next few years-

supports,
unemployment
compensation, other parts of the-

may

One of these conditions, j the Secretary of State, has

well set forth.

;

of

in

be

What

plies

use

ta

plans.

develop
would

under

the best

orders

farm

logis¬

competition for scarce
military drain abates or as the goods and a tight labor supply.
fruits of government reorganiza- Time does not permit going into
tion in the interest of efficiency the
interrelations of this comand economy materialize. At the plex process.
But the significant
same
time, there is grave appre- point is that the fiscal and monehension oA the part of manage- tary parts of the problem have
ment lest labor's use of its power been faced, and to a considerable

given clear evidence of realizing.

•

what

building

#

assure

from

fewer

therefore to agree

duplication of effort

,

j

when

;

;

we

the

goods

means

feel that any

.

*

of

through^

also

materials, still further disemploy—
and the postponement of

effectively integrate our armament proin such careful relation to our in¬

our

from

struggle to

to us,

deemed

,

,

doubted

economic feet at least to the

aggression of the Kremlin—at least two, that is, in addi¬
tion to
turning a deaf ear to. the blandishments and the
schemings of the Communists who were "working from
within" to take these
peoples of Western Europe into
eamp.
' ;
j

_

;

but

ment,

Preventing Depression

tating experiences of World War II.

some

and

de¬

buying

the manufacturer, less purchase of:

trial

must be

recover

shelves

Government's Role in

defense

great deal of help to these countries for the purpose of
getting them back on their economic feet after the devas-

j

movement

for doubt

such

therefore, that the Secretary of State,
good policy at this time, could have
gone a good deal further than he did in
describing our
position. He might well have added that we have sent a
he

were

following ob¬

room

be

Could Go Further

;

the

social

eliminate waste and

must

Continued

a group

their

the President has

It

made

problem is to achieve adequate military strength

grams and plan them
dustrial facilities that

-

point of making their own living would scarcely prove
very valuable allies in time of world stress.
This fact

had

he

equally applicable to foreign aid

as

*

against Russia
and to defend them on that
basis, the fact is that such
allies as we may acquire or hold in this
way will not be
worth a great deal to us unless and until
they are on a
much

that

a

of the

United

regards them

"We must

good deal more than political unity in Europe.
On any other theory we have been
wasting our substance
in the most
purposeless and profligate way. However we
may feel disposed to relate our expenditures on the other
side

forces

in the armed services.

in relation to Western

Consumer

envelopes

pay

tics activities.

particular France, Germany and England should go
their separate ways, then
certainly it would be necessary
to give a little
re-thinking to. America's own foreign policy

plant

one

greater caution in spending what
they
do
contain.1 The
slower

armed services and effective consolidation of certain

in

volume..1

and

disemployed at

in connection with

was

capacity would be to defend ourselves against one kind of
disaster by inviting another.
"Both military and economic objectives demand a
single national military policy, proper coordination of our-'

have sent abroad since

we

meets

clines not merely through smaller

within the limits of endurable strain upon our
economy.
To mass military power without regard to our economic

has made a big investment in
the theory that there could be unity

Of the $40 billion which

armed

own

"Our

States

on

demands

in number

rise

People

of all sorts:

*

come to»
"irresistible-

the

resistance, strikes and shut-downs;
will

plants.

servations, but the context leaves little

be somewhat stalled.

if

union

of

workable:

on

they

respect thoughtful citizens will
the President's approach to foreign

gratified with
policy and to our own defense. It

that he

em¬

the immovable body" of employer

other

one

feel

our

is

become poorer customers of other

In at least

single European Defense Community
a situation where
they could not
fight each other and where their combined strength with
that of their other allies would make it
unlikely that the
Red Armies would attempt to invade Western Europe.
"That's a good idea and it has had in this country
bipartisan support. Unfortunately the plan now seems to
*

force

thankful.

would have

we

To

agree
trade.
If

of

impasse;

an

plans of President Eisenhower and
as
yet been revealed we, of course, have no
way of knowing. At least the Administration is at work;
it rejects a defeatist philosophy.
For that we must be

-

on,

goes

force

can

terms

his aids have

France will join in a

and then

ment

what extent the full

these Western

European countries have used their military strength with
which to fight each other and to bleed each other. Particularly France and Germany, as you know, have been fight¬
ing each other about once in every generation for quite
a
long time. The present hope is that Germany and

Secretary of State.

new

to

as

ployed and our goods get sold
depends
on
whether
the
two.
major parties to private employ¬

to find and apply the remedies. This much is be¬
coming clear both from what the President has now said
and from the words of the

about

do

decision

labor

our

ramify¬

our

may

production

whether

power

He said:

"The trouble has been that in the past

whether

Administration intends to do whatever is within, its

new

war

Thursday, February 5, 1953

...

to

argue

must face

two

a

as

show-down

ideologies

business

government

world.

may

in.

our

and

What-

do

as

the

wares_in
_

on a

distribution
a

of

stapl®-

word> for socialization
.

,

,

.

.

.

scale not dreamed of m thif

third, . spiralling ^\vage-price - ad--, spender, and taxer, whatever the country and not piracticed. in;Grea|,

The Commercial and Financial Chronicle

Volume 177

Number 5192

Britain

at the height of the

labor

even

.

.

.

Much of the demand which will adequately discharged through

this supply expresses it- credit extensions and the judicious
self, in accordance with our old- payment of direct relief, whereas

evoke

government's program.

This is not to draw

a

horrendous

est traditions, through public
agencies. It takes the form, of
coolly in advance at a rapid train public roads and other transportaof dangers which can be seen fol- tion facilities,
public education,
lowing swiftly from the failure of public health and recreation; and
imaginary

picture

of

around

the

evils

but

corner

Bank and Insurance Stocks

nationalization of basic industries

just

look

to

\ vvv /

intrusion

or

of

government into
By

the operative role does not solve
the basic economic problems but
simply transfers them from the
any really effective readjustment
a considerable range of protective, area of market determination to
of wage and price relations when conservationist,
and other com- that of political control,

munity services. While some of
these needs should be planned
the past 20 years to one of really and executed on a national scale,
self-sustained domestic prosperity many of them can be more intelliwithin a structure of international gently and economically adminisrelations such as devolves upon tered by state, regional, and local
us
by virture of our position in units of government. It is not
attempt to move from the con-

we

dition artificially built up

world

a

tion
Do

To

And

Not

or

of

nance

which,
analysis of the

well

as

of

things

do and those

government should

decentralized

these

developing situation,

and

things that it should not do.

public

deflate

overconfidence. General Eisen¬

there is no quick and
of solving the military

that

try

way

easy

and

Kremlin

the
the'

manner,

clear that

that

miracle

no

perfectly
be per¬

can

economic

the

in

we

live with and try to

the

of

results

economic

the

less,

no

ment

the free func¬

the

mechanisms, stands in the

Turning

intend

avoid

to

depression

This leads to
The

second

my

should

government

to

the

role

make

A

I

run

but

for/

America

as

the

frankly face the basic difficulties
which
underlie
the
superficial

Security profits, on the other hand, were adversely affected
losses

Edward

F.
McDougal, of the
relations
department
of

Trust

Company

Ad

re¬

transactions

such

was

were

nppH and want tn kppn
need nnH want to keep

28

for

the

past two

He

ceeds

It should not lower taxes
expenditures have been

$2.37-

£0.14

29.24

25.21

3.97

2.95

National

3.77

*2.88

3.96

3.29

Corn

4.71

4.68

of

Bank

Chase

of the

York

New

Exchange

1951

1952

195J.

$2.38

$2.39

29.24

$0.02

25.21

*

*

-0.04 —0.09

3.93

2.86

-0.29

0.03

3.48

2.91

0.07 —0.01

4.03

3.28

;

4.71

4.68

;

11.35

First National

9.21

6.92

-3.23

18.27

5.98

21.69

1.75

2.75

24.28

24.44

21.55

______

17.66 —0.68

0.05

20.87

17.71

Hanover Bank

7.60

6.53

0.15

0.70

7.75

7.23

Irving Trust

1.63

1.55

0.01

0.01

1.64

1.56

5.31

4.96

0.16

0.01

5.47

4.97

20.72

15.92

0.17

-1.99

20.89

13.93

3.98

3.51

0.02

0.08

4.00

3.59

8.70

8.09

0.06

-0.08

8.76

8.01

3.64

4.02

0.23

0.04

3.87

4.06

20.13

17.80

Nil

-0.44

20.13

17.36

Guaranty Trust

Journal."

'

22.53

fEmpire Trust

v

and
Street

"Wall

.

offi¬

Other

Edward F. McDougal

named

cers

$2.52

of Manhattan.

Bankers Trust

suc¬

c w °

1952

Chemical Bank

1

Total Earnings

Security Profits

1951

Bank

"Dow-Jones

ices"

Total

operating earnings, security prof¬
major New York banks are compared

1952

Richard

Meyer,

bank.

years.
Oper. Earnings

the

Club.

to

operating earnings.

Lawyers

lis

us

at

bank

In the tabulation below, the
its and total earnings of the

Jan.

session

varied from

generally higher reflecting the dominant upward

leader

of trade.

until

rates and several banks reported small
There was no marked trend, however, as

interest
year.

trend of

that still exists, that
were:
First
t
probably persist for six brought down to the level where Vice-President, Howard J. Carsmonths or a year longer, and that n0 further deficits are piled on top
well,
of
Guaranty
Trust
Co.;
might
be
nursed
along
even of our present public debt. I be- Second
Vice-President,
Edwin
lieve it would even be a smart
further
by
artificial stimulants,
Goat,
Bowery
Savings
Bank;
ameliorative poultices, or psychi¬ thing for business to allow the
Secretary, Mrs. Isabelle Murray,
excess
profits tax, bungling
atric deceptions. For the economic
of
Hudson
Advertising Agency;
grand strategy of the new Admin¬ though it is, to continue beyond
its present expiration date-on the and Treasurer, Robert J. Stie
, o
istration. I would strongly recom¬
prosperity

the

from

earnings

rtisers

ve

rise in

for

results

Financial

fully employed if money flows are
established through proper terms

(2)

larger

a

the

elected President of the New York

It should not continue mili-

(1)

holdings. In addition many institutions
income from miscellaneous sources including

Although expenses including wages and taxes continued to
increase, the large gain in gross income was more than sufficient
to absorb these higher costs.
The final result was a substantial

nation's business.

of a stabilized Association at
their luncheon
society of free nations:

sponsible

sharp expansion in income from this

a

facilities.

service

do

resulted in

government security

showed

but

to

rates

Higher interest rates also helped to improve the return

on

con¬

business,

itself undertake

high and expanding level of loans combined with firmer

source.

Govern¬

of

for this overall gain was the increase in loan

reason

interest

con¬

favorable

private

Bankers

not

merely for ourselves in the short

cnmprc
sumers

*

*

(2)

is

public

to

now

in and that

sights down" to reality.
"do."

that

all,

your

primary

interest.

by

subsidies.

formula

things which
government should not do, if we

bad
practices

in.—

The

N. Y. Fin. Advertisers

tary expenditures, conservation
many of them will persist in to. payments, industrial subsidies, or
the extent that they find it possi- similar
outlays merely for the
ble.'It will call for a bit of pa- sake of keeping firms afloat or
tiepce on the part of the public labor on the payroll. There are
and for some groups to "get their enough things that ultimate cona.

the
nor

gain in net operating earnings.

SSSS

bad

business has indulged

Above

cases

are

McDougal President of

of tbe «u(ick a"d £le*ib'e ?d"
laments that can be made by the

economic
policies and practices that private'
and,

viction

not

market

live down the
and

out¬

problem,

existence.

should

on

the

solved

tioning of ever-improving private

government's

policies

of

for

controls and less

and

it

make

sphere;
shall have to continue to

formed

out

'

should

hower

it

ditions

In.hu

Administration.

outgoing
same

us by
inherited from

thrust upon

problems

economic

recent

of

have

reali¬

had

Administration

to rely more on government

years

hower has frankly told the coun¬

that neither

to

your

little

hope I have deepened

Government should lead a
crusade for free market adjust¬
tendency

a

had the November elections voted

(7)

The

however,

hope,

nation's

public enterprise.

ments.

It should

(1)

shall

going

of

centers

of

minutes

in most

encouraging from the standpoint of the stockholder.
Of course, all of the banks did not participate in the more favor¬
able operating conditions either because business in their particu¬
lar fields was depressed or because of special operating problems.
However, the general trend was towards a higher level of oper¬
ating earnings.
For the group as a whole net operating results showed an
increase of more than 15% from the level of the previous year.

followed by
minute of conclusive solution.'

zation

prosperity demands that

nTne

you

Bank Stocks

—

All of the annual reports are now available and

the results

I have

hand

mv

analysis

quickened just

vigorously supported as
closely supervised from

be

in the light of my
current

Do

given

0ne

I

This Week

opemPng pTa

j overbid

definitive

Washington. The mainte¬

they

listing

gorical

To

in

for my brief and cate¬

now

®0t

enough to resist their concentra¬

hope to keep free.

we

grapb

JOHNSON

E.

Operating earnings of the 17 major New York City banks for
1952 showed substantial improvement over the previous year.

closing oaraaranh I must

j

apo"o^L foT

during

H.

u

Trust

Manufacturers

will

slogan, "Seize the nettle,

mend the

realioutset, accept promptly

Face all the hard

danger."

ties "at the

wise

would in the not distant future afor even accelerate whatever del'ect such adjustments that this tax
flation
is
practically necessary would be no more than a nominal
rather than postpone the evil day. burden on them. Of course reviLet'the "false work" fall while the sions to take the legitimate interof

momentum
and

ment

military

business

mains strong. Use every

re-

legitimate

damp off an inflationary
boom instead of allowing an overto

means

the

confidence boom to aggravate

last ' stages

of

boom.

t(3) Passing

an' over-building
k
4

to

strategy

from

tactics, the next "do" is "balance
.the

budget.^'

If

this

process

is

iCarried out with business firmness,

approved or
projects already begun will
already

plans

some
even

•have to be cut back.

A.

over

J1!?,

the market

not forced

.

the law was extended.

g

(3)
erect

Government shoul d not
protective traiff barriers to

competition
the

own

nations

other

of

world

free

who

buy

can

Skilled

minds

•jective
ition

han(^ and the obof money techn -

the

of

a

pressure-conscious

pressuie—responsive
Decentralize

Federal

fortune

only if given acas is prac-

0f free nations
cess

to

ficable

as

free

market

a

view

in

of

and

Congress.
public enter-

:

legitimately

need

suddIv

equilibrium

in

Stocks

finding

0f
snd

•

the

the drain

their

a

there will be a

Feb.

to

already

of

ing

e

the

be

made

character

■

of

a

It
the

agricultural industry seems to reqtdre market equalization opera-

;Qn

.

support, with administraremoved. as {ar as possible

very

were

viewed

many

as

favorable.
excellent.

*

i

of the bank stock¬

earn7?'(

The current level of

1968,

inclusive,

headed

by.

increase in operating results for the

feeling is supported by

was

considerably above

Then

as

the full impact of the

reflected

year^,.

than in 1952.

high^p interest rates has not

operations, there should be

in

f

a

''

ment in thd rate of'return.

was

a

that unless there is a greater than usual seasonal decline,

so

been

.

<*-

.

**

to

yield

from
on

2.20%

maturitv

,

*

'

(

earnings will continue into the current year.

Wm. R. Staats Adds

to
Is-

w

•

•3'10%' dep^ding ormaturity. Is

LOS ANGELES,

certificates is sub-jeet to the 'authorization of the
suance of the

C.

South

The certificates are to be ser)jesei

b

eiectric

Huber

has

Calif.—Richard

become

the

road

Co., 640

Spring Street, members of

New

York

and

Los

Stock

to cost not less than *.680,000:

Inc.

.

t

'

sent

on

request

Laird, Bissell & Meeds
Members New York Stock Exchange
Members

(Special to The Financial Chronicle)

LOS
•

be

Exchanges.

ML H.. Reisdorf Opens

<

Other members of the under-

•

17 N. Y. C. Bank Stocks

Angeles

switching locomotives estimated

ana Ureg°7'

Sources of Gross Income

Will

cured by 30 Diesel-electr c road
,ltV/A

Govt. Bond Portfolios

affiliated

with William R. Staats &

Interstate Commerce Commission.
,

BREAKDOWN OF—

(Special to The Financial Chronicle)

ANGELES,

Reisdorf is engaging

Calif.

in

a

M.

H.

securi¬

ties business from offices at 7958

American Stock Exchange.

120 BBOADWAY, NEW YORK 5,

Teletype—NY 1-1248-49

(L. A. Glbbs. Manager Trading rx»*>t •

Specialists in Bank Stock-

Beverly Boulevard.

N. I

Telephone: BArclay 7-3500
Bell

t

further improve¬

Thus, it is expected that the upward trend in net operating

Haisey,

/

year.

existing high level of loans.

an

end of 1952

the outstanding loan total will average higher

itself to be drawn into actual op- writing group are: R. W. Press-

the channels. recovery. Public responsibility for
business enterprise, the welfare of the economy can be




the past month.

over

general 5%-10%

a

ago,

$3,600,000 South-

denendins

'distributed - through
of --private

point of view expressed at

meetings

This

productivity in the form of goods erative functions for the sake of prich & Co.; Freeman & Co.; The
and services which cannot be fully stemming recession or promoting ;Illinoi_ Co . and Gre£y0rv & Sort
.

the

operations is

the -Stuart & Co. Inc. The certificates,

subject to

liquidation policy.

distinctive

1,

group

market withQut digruptive regultSj priced
sbouid

for

outlook

The loan total at the

made on Jan. 30 by an underwnt

im-

on

current

was

holder

•

respective

military

eral Government,

'

Railway series TT 3% equipr

demand

build-up abates frQm poijtiCal pressures
and as operative economies are
'imnortant
-effected in both the military and
Last and most important,
the civilian activities of the Fed-, the Government should not allow
of

This

trust certificates/maturing
relieve particular groups, of pro- semi-annually from Aug. 1, '1953
tbe

Chemical

only modest gains in operating

Nevertheless, the overall results

The

Haisey, Stuart Group
Offers So. Ry. Equips.
An offering of

1fim SCale of
tions'they should be °»aslidi"g-employment a"d
utilization of plant after

decline.

Bradford Warner

Magazine "

National,

Chase

Morgan, National City, and U. S. Trust.

Loan

&

favorable showings include

Trust,

earnings and in the case of Public National there was actually a

^ Government should not embark on stockpiling operations to ment
0f

Bankers

more

ings should at least be maintained and there is some expectation

vested interests.

ducers

York,

Company.

Trust

banks to make

The other institutions registered

Stillwill

Savings

New

of

and

1951

City Bank Farmers

Manufacturers Trust, J. P.

0npntin

L

fFigures of Empire Trust have been adjusted for
1953 but not for the one to be paid Feb. 13,

reported separately.
^Includes

Bank, Empire Trust, Guaranty Trust, Hanover Bank, Irving Trust

our

themselves,

exports, sustain

clarence

Accnriatinrv unrl

and play their role in the society

political interven-

not

cians,

of

.

Trust

dividends paid in

Bank

Frank:Guenther

Albert
Inc

Law

shelter domestic business from the

(5) Leave money management p0unded cannot be dumped

'to'the

East River Sav-

.

States

Some of the

Miss

to account should be made before

markets.

into the banks.

♦Not

stock

tro^Earfc'sanlm^yer.Chem"
>

AXlto longer-term obligBtioiis held

genuine investors,

United

Campbell East^R.ver^Sav,
Bank, J J Lawlor, Nationa
£ L R0\^nd p^""do Lehman

ern

f(4) Along with "budget balanc-

^-which i}1®
debt
hangs

norea^C^bell

rearma-

expansion

Public. National

1953.

Ax^ord "American ^Jnker

P

York Trust-___*

New

-

Directors

administration

price

Morgan, J.

^National City

Americanelected are: retiring
Bankers Association,

theory that competitive pricing or
even

*

■.
->

The Commercial and Financial Chronicle

Record Mutual Savings

Utility Securities '

Public

According to Robert M. Cath¬

Ohio Edison Company
1

;
'

Edison, with annual system revenues of over $100 million, serves an area of 8,057 square miles in Ohio, while its subsidi-

Pennsylvania Power Company, serves 1,394 square miles m
the' adjoining state. The population served by both companies
approximates 1,813,000.
The territory served by Ohio Edison
extends to within 8 miles of the city limits of Cleveland; the largest
cities it serves are Akron (274,000), Youngstown (168,000) and
ary

'

President of the

arine,

Ohio

Springfield (73,000),
m
The service is almost entirely electric, with a

Association

«
'

1

•

j
i

Savings

5 2 9

This compares

t

;

for the Ohio Edison System is

19467 19502

<cently, market statistics on the common

?

Last Sales

High

LOW

41%

30%

28%

9.09

2.00

6.99

38

27

27%

9.82

2.00

7.27

34%

26%

10.89

2.00

6.23

33

27%

2.98

32%
30%

10.19

2.00

6.58

35y8

2.60

33%

12.84

2.00

5.99

33%

30%

39%

331/s

1947—

3.15

2.80

2.95

..

..

..

1950—

1952—

..

38%

2.97

..

13.01

%

Dividend

5.70

f2.20

♦After giving effect to merger of The Ohio
May 1, 1930.
fAnnual rate
JBivMend in December, 1952. '

JCo„ effective

,1

-—Price Range-

Yield

5.71

35

$2.92

..

1951—

Ratio

$2.00

4946—

•1949

Earnings

of Period

11.99

Earnings

1948—

Price-

Price, End

Share

*

stock have been as follows

28y4

prices for coal, partic¬

ularly in the oeriod 1942-1949 when the average price increased
irom $2.79 to S5.19 a ton; since that year the price has dropped to
Around $4.78.
Ohio Edison recently sold 150,000 shares of new preferred
stock and about 480,000 shares of common stock. On a pro forma
basis the consolidated capital structure is estimated as follows:
1st Mortgage

»

j

Bonds

—

r

72,000,000
129,000,000

Robert

M. Catharine

rise of

from

41.8%

of

assets

to

se¬
or

37.3%.

Meanwhile, holdings of corporate
municipal securities increased

and

$638,000,000

and

cash

rose

$26,-

000,000.

Criticizes UN's Action on Nationalization
"The Guaranty

100%

$348,000,000

Survey," published by the Guaranty Trust

Company of New York, says it ignores sanctity of contracts
and principles of international law, and also ignores rights of
private investors.
The current issue of "The Guar¬

anty

Survey,"

monthly publica¬

tion of the Guaranty Trust Com¬
pany of New York, in an editor¬
ial article, captioned "National¬

$19,146,040
28,869,914
41,748,255

sharply criticizes the United Na¬
tions General Assembly because

59,199,900

1953

Milwaukee Bond Glub

P.

quarters, and

will

Charles

D.

in

be

Halsey
•v.-

charge of commodities in

the Chi*

office.
I'
*
Mr. Halsey has had 28 years

cago

of

experience in Wall Street and was
a governor of the New York Curb
Exchange (which

recently became

Realty

Corporation and other realty en¬
terprise, and Harold C. Price, in¬
dustrialist of Tulsa and Bartles*ville, Okla.

FHL Banks lo Redeem

$142,060,000 Holes

"Modern produc¬
well as 'knowThe Federal Home Loan Banks
how,' was needed. Almost alone announced through Everett Smith*
among
the advanced industrial fiscal agent, that two issues of
nations, the United States was in the Bank's consolidated notes to¬
a position to supply such equip¬
taling $142,050,000 principal
ment in large quantities.
amount which mature on Feb. 16*.
anty

Survey."

tive equipment, as

(Est.)

Investment,"

"Throughout history, economic 1953 will be redeemed from cur¬
resolution ap¬ enterprise has involved the use of rent resources.
The issues are
proving nationalization of eco- credit. For countries with little $75,400,000 of 2% series A-1953
n o m i c
resources
by member industrial equipment and low pro¬ consolidated notes dated May 15*
states.
ductive capacity, this means for¬ 1952, and $66,650,000 of 2% series
"The resolution does not con¬ eign credit. Only with the aid of B-1953 consolidated notes dated
tain a word in defense of private foreign capital and foreign techni¬ June 13, 1952.
Principal and in¬
enterprise," "The Guaranty Sur¬ cal knowledge can progress be terest will be payable at any Fed¬
vey," states. "It does not mention achieved with reasonable rapid¬ eral Reserve Bank or branch*
the

rights

of

private

investors ity.

who have risked their savings in
the

Upon

development

sources.

Vice-President:

G.

It

says

M.

Vonier,
Paine, Webber, Jackson & Curtis.

Meeting

Lewis,

Lewis & Co.




J.

P.

Main

Street.

He

with Sutro & Co.

was

formerly only

by

substantial

foreign

in¬

vestment," continued "The Guar¬

of

redemption

the

issues

development of outstanding consolidated obliga¬
the United States took place in tions of the Banks will have been
to
$306,500,000
from
this way.
Beginning in colonial reduced
times and extending through the $448,550,000 now outstanding.
19th century, large
Payment of the Feb. 16 matur¬
amounts of
foreign
capital
were
invested ities without the necessity of re¬
"The

economic

of
such
re¬
nothing about
the sanctity of contracts or
the long-established principles of
Board
of Governors:
Otto
J.
international law.
It deprecates
Koch, Jr., The Marshall Company; any action by a member state to
here.
Only within the last 40
Lyle W. Hamann, Central Repub¬ uphold the rights of its nationals
years
has
the
United
States
MILWAUKEE, Wis. — The an¬ lic Co.; Ralph Rada, Rada, McEliagainst the confiscation of in¬ emerged from the status of debtor
nual meeting and election of of¬
heney & Morack; Miles C. Reinke, vestments made in good faith.
nation.
Now the situation is, to
ficers of the
Milwaukee Bond
Robert W. Baird & Company; N.
"It is unfortunate that this ac¬ some extent, reversed.
Club will be held Friday even¬
S. MacRury, Merrill Lynch, Pierce,
tion has come at a time when the
ing, Feb. 13, 1953, at the East Fenner & Beane; and Carl G.
"Capital flows to; borrowers
need for large-scale international with
Room of the Schroeder Hotel. A
acceptable credit standing.
Hausmann, The Milwaukee Com¬
investment and the obstacles to it Investors
cocktail
party for out-of-town
require a fair oppor¬
pany.
are
exceptionally
great.
Ever tunity to earn a profit, and the
guests will be given at the Mil¬
since World War II it has been
waukee Club at 5 p.m. Tariff $10
right to bring the profit home.
apparent that many underdevel¬ They need
for out-of-town guests.
With Waddell & Reed
a
politico-economic
oped countries are eager to raise climate in which contracts are
The Board
of Governors
(Special to The Financial Chronicle)
ap¬
their standards of living by ex¬
performed and private rights are
pointed the following Nominating
DETROIT, Mich. — Fredric F.
panding and modernizing their respected."
Committee to name a ticket for Busch is with Waddell &
Reed, economies. To
promote this aim
the coming year: W. G.
The
effect of
the resolution
Bingham, Inc., of Kansas City.
the United States initiated what
Bingham-Sheldon & Co.; Charles
adopted by the United Nations
has become known as the Point
Givan, Gardner F. Dalton & Co.:
General
Assembly must be to
Four program of technical assist¬
Herbert Wolff, A. C. Allyn &
With J. H. Jordan Co.
make worse an international in¬
Co.;
Brenton Rupple, Robert W. Baird
ance
to underdeveloped areas.
vestment climate that is already
(Special to The Financial Chronicle)
& Co.; and Otto Koch, The Mar¬
"It was evident from the begin¬
RIVERSIDE, Calif.— John G.
bad, "The Survey" concludes. The
shall Company.
Jordan has joined the staff of The ning
that
technical
assistance chief victims of this ill-advised
The Nominating Committee has
reported the following nominees: James H. Jordan Company, 3691 could be made fully effective action will be the economically
J.

head¬

York

of its adoption of a

36,826,414
37,902,001

ization and Foreign

The money raised by the recent financing is expected to
provide for construction funds in 1953 but there may be some
additional financing late this year or early next year. Cash result¬
ing from accelerated depreciation can be used for construction
proposes but will not be used to increase net income.
Earnings for the calendar year 1952 were $2.97 a share which
.would be reduced to $2.68 on a pro forma basis (allowing for the
Increased number of common shares) for the increase in pre¬
ferred dividend requirements and for the change in EPT.

President:

gen¬

partners
Charles D.

director of 1350 Broadway

21,995,166

Annual

new

eral

gain in mortgage the American Stock Exchange)
In commenting on the report, holdings was $159,000,000, in con¬ from 1941 to 1947. He has been.
trast to $171,000,000 a year earlier
Mr.
Catharine
said:
"The
in¬
Chairman of the board of trustees
creased
share
of
current high and $113,000,000 in November,
New
York
Medical College,.
1952.
Reflecting lessened con¬ Flower & Fifth Avenue Hospitals
level earnings of the American
struction activity,
1952 monthly since 1926, and since 1950 he has
people that is going into savings
fell below those of the held the
is helping to check inflationary gains
posts of President of th^
same
month of 1951 except for
forces in our economy.
In con¬
United
Hospital Fund of New.
tributing to
this result, many September and October. Holdings
York; Vice-President and director
thousands
of families
are
also of U. S. Government obligations of the Greater New York Fund,
declined in every month of 1952
building a strong personal defense
and
director
of
the
Hospital.
except January and July.
Total
against future contingencies."
Council.
governments fell off $52,000,000
The
greater deposit gain
in
Mr. Raclin is a member of th£
1952, as compared with 1951, re¬ in December, in contrast to a de¬
Chicago Board of Trade and has
flects the fact that amounts de¬ cline of $74,000,000 in November
had a number of years of expert*
posited in regular accounts were and a drop of $27,000,000 in De¬ ence in
commodity transactions.
12.4% higher in 1952 and with¬ cember, 1951. Except in August
The two new limited partners
drawals only 0.3% greater than in and October, the monthly decline
of
Bache & Co. are Marvin J,
1951.
Despite the widespread in¬ in holdings of U. S. Governments
was
less than during the corre¬ Silberman, of New York, who iscrease in the rate of interest-div¬
a
director of Consolidated Cigar
idends paid, 71% of the gain in sponding month of 1951.
Corporation
and President an<i\

$10,566,557

1949

holdings of U. S. Government
curities declined $400,000,000,

The December

tory.

37

follows:

1948—_

lim¬

partners.

The

are

and

new

L.
assets, as compared with 41.5% on Robert
1, 1952. During the year, Raclin,
who

gain in their 137 year his¬

21

^thereafter, the consolidated ratio was nearly 21%. Through plowback of earnings and several sales of common stock on a favorable
basis, the pro forma equity ratio has now been increased to 37%
*—a remarkable accomplishment.
System construction expenditures in the postwar period have
as

two

Jan.

yearly increase in deposits since
1945 and the second highest an¬

On Aug. 31, 1944 Ohio Edison Company had an equity ratio
Dfonly about 19%; after acquisition of Pennsylvania Power shortly

been

partners
ited

42%

$147,000,000

Preferred Stock
Common Stock Equity (5,278,000 shares)

I

the proportion

total

$876,000,000,
or 4.4% in 1951, and is the largest

nual

1951

less than three-fifths.

ing 1952., Mortgage holdings now
$11.2 billion, or 44.4% of

new

of

a

In

their

to

—

Public Service Co. into Ohio Edison
Indicated by increase in quarterly

Ohio Edison has had to pay increasing

creased

with

.

credited

est-dividends

December, 1951, thus continu¬ Halsey, who
ing the favorable record of the will serve as
an
adminis¬
preceding months of the year.
A
gain
of
$1,500,000,000
in trative part¬
mortgage loans featured savings ner in the
banks' portfolio operations dur¬ fir m's New

$1,703,000,000,
or 8.1%, dur¬
ing
1952,
to
a

New York

Co., 36 Wall Street,
City, members of thd

in

sav¬

ings banksin-

high

new

&

New York Stock Exchange, an*
1952 repre¬
nounced
the
admission of
two
money received from
new general
-;
;.;
v
in contrast to inter¬

gain in regular deposits of
$333,000,000 in December was well
above the increase of $246,000,000

$22,603,000,000 at
the year-end.

2JB73 kwh. per annum compared with the national average around
2U75 kwh. The average residential revenue per kwh. is 2.68c
.compared with the estimated national figure of 2.76c, Both figures
have declined steadily for over a decade.
According to a data-book prepared for security dealers re-

New Partners
Bache

in

deposits

depositors,

Thursday, February 5, 195#

Bache & Co. Admit

The

deposits in the

reach

sented

was

of New York,

nation's

regular

accounts.

Bank

small amount
Of heating sales and miscellaneous.
Electric revenues are 35%
residential and rural, 22% commercial, 37% industrial and 6%
miscellaneous. Residential sales in the 12 months ended Dec. 31
gained nearly 11% over the nrevious year, while industrial sales
(probably due to the steel strike) gained less than 2%. The prmcipal sources of industrial revenues in 1951 were as follows: iron
and steel 19%, machinery and metal products 47%, rubber 11%,
and chemicals 6%, with a large number of diversified industries
Residential usage of electricity

■

Sav¬

of the City of

contributing the balance.

»

National

Mutual

of

ings Banks and President, Dollar

mutual

t

Deposits in 1952

Deposits increased $1.7 billion, or over 8%, to reach a new
high of $22,603 million at year's end. Reduced mortgage
purchases by savings banks reflect decline in construction.

By OWEN ELY

*1

'>

.,.

(604)

m

funding reflects
cash

of

January,

into

inflow
during

Mr. Smith said.

repayments

by

tions during the
exceeded

strong
Banks

a

the

Loan
member institu¬
month, he stated

$180,000,000.

Consolidated

statements

of the

Federal Home Loan Banks for the*

ended Dec. 31, 1952, issued
publication today, showed a*
income of $8,625,076 for the

year

for
net
year

compared with $6,295,149 for
declarations

to

stockholders of record on Dec.

31*

1951.

Dividend

1952 totaled

$3,423,000.

Assets of the Banks at the 1952:

year-end
totaled
$1,221,702,022:
compared with $1,095,275,649 a
year earlier.

William H. Radigan
William H. Radigan, partner

in

countries that voted for

Morgan Davis & Co., New York

it declared the bank nublication.

City, passed away on January 22.

retarded

-Volume 177

Number 5192

-

The Commercial and Financial Chronicle

...

(605)

reasons for this, but broker's office to ask what the
going into them at this time market did, you're told "the
will
merely confuse you.
I averages went up (or down)
merely throw this out to put so much." After that's out of
you on your guard in case the the way, you ask about your
rails and the industrials make specific stock.
Frequently you
a new
learn that though the aver¬
high.
4e
4c
ages went one way you stock

28

many

Tomorrow's
Markets

Walter

Whyte

Says—

Basically

By WALTER WHYTE=

not

If

watch

you

the

buy stocks;

you

Latter

averages.

particularly
the t h e y'r e even
Dow-Jones, you know by this gambits. When

averages,
time

that

about

the

rails went

conversation

call the

you

up

3Y2 points and the in¬

dustrials about 3 points. This
advance has brought about a

change in the
of

[The
article
time

views
do not

coincide

expressed

*

waste

Southern

yond sentiment. The chances
are, however; that if the gain
added to, .this senti¬

or

tion and

new

replaced by ac¬
buyers will start
: ;
^

coming in.
\ I' 'v"
.

I
not

point out

..

the foregoing

fact but

as a

possibil¬
ity.: Hope, tear and avarice
always play a major role in
.the buying
and selling of
stocks.

-

♦

Talk of

For

mon.

some

never

been

stand,

a

,

now

I've

reason

able

under¬

to

split-up

is always
by the pub¬
well tell you

considered bullish

lic.

I

might
that

now

belief.
worth

as

I

don't

share

Getting two of
half

basket.
on

is

It

any
a

a

mistake to

the

that

thing
price of the
a

seemed to

never

me

lasting is something else
look

I don't have time to
ud

doubt if

records

past

but

I

split-ups in the long

have

run

added

much

to

stockholders' pocketbooks.
*

Last

4c

week

I

4c

said

in

this

that the action pointed
rally. Well, it happened

There

talk

or

were

released

were

also

had

rumors

been

of

such

no
a

sur¬

at

better

the

same

than

time

had

been

expected. Earlier official estimates

of the entire sales organization to

Railway

it through.

carry

There is nothing

was

in Every

put in operation last Septem¬

was

writer

a

quite nice.

reason

it

If for

gives the

chance to take

ries of low bows.

ra se¬

Of course,

anybody taking bows also has
to

be on guard
against any¬
body creeping up behind with
undignified, and disastrous,
results.

So

talked

having

about

a
rallv last week, I'll
depart hastily and return to

of

the

At

time

is

this

of

of

breakdown

It

writing,

December

Indicative

no

results

available, but earnings of
just short of $4.00 for the single
yet

month

would

with

forward

indicate

the

likeli¬

can

practices
be

seen

is

also

that

the

of

complished,
of

in

more

what

has

been

ac¬

You

will

the

cut

a

remember

is

the

investment

planned

and

your prospects—remem¬
ber you are in a business and yum

4C

better

confidence

to

even

from Southern in
earnings in the current
year.
For one thing, the traffic
outlook appears quite bright. Se¬
condly, prospects favor a continu¬
ing improvement in operating
efficiency and a consequent
widening of the profit margin, at

things

least before Federal income taxes.

with retirement

of

bonds

operations, fixed
and

lower

should
an

a

through

large
tender

charges will be
tax saving

sizable

realized.

be

a

Thus

barring

unexpected and sharp business

important strikes in
along the line, it seems
entirely possible that in 1953 the
company might be able to come
up with earnings comparing fa¬
vorably with the wartime peak of
$23.41 realized in 1942.
recession,

or

industries

is

It

that

Just for the sake of

keeping

who

man

customers

—

find the best

can

customers

more

are

All

that goes on into
the

program;

super

rhapsodies about

salesman who

can

sell

not

only

the

immediate

New York Stock

Exchange
Weekly Firm Changes
The New York

Stock Exchange

has announced the following

firm

There

just

are

so

many

sales in every one hundred leads.
There are only 13 spades in a deck

a

Shirley Houghton, general part¬

entire

southeastern

section

lucky they hit

an

if they are
"ace" once in a

while.

ANGELES, Calif. — Clif¬
has become associated
with Paine,
Webber, Jackson Sz
Curtis, 626 South Spring Street.

Mr.

salesman

with

"know

formerly with First
and Nelson

was

Company

Douglass & Company.

Managed Investment
Programs Formed
SAN

FRANCISCO, Calif.—Man¬

Investment

aged
Sutter

Street,

securities

Programs

with

formed

been

to

offices
engage

business.

has

in

boiling,

I'd

like




to

•'

41

at

the

Principal

of

the firm is Nathaniel S. Chadwick.
Mr.

the

Hey

California

Chadwick

associated

has

with

E.

recently been
F.

Hutton

&

how" takes the direct road to the

man

The lines of the System give

of the

someday give

small order, and

doesn't waste his time travel¬

Exchange withdrew from partner¬ ing out to the edge of town to see
ship in Francis I. du Pont & Co. that same "free rider" and go over
on January 31.
the whole performance with him
partner in Tobey & Kirk, became

the

a

LOS

ford L. Hey

bigger

is so promising—
long-term
prospects
also considered highly favor¬
to practically

ber two's" who may
them

the "num¬

Hey

(Special to The Financial Chronicu^

Company in San Francisco and In
and more profitable ac¬ the past was an officer of National
bership of the late I. Chalmers
count in
"group 3."
He tosses Securities & Research Corpora¬
Wood to Henry W. Sage will be
out the deadheads.
He reports tion.
-;
considered by the Exchange on
back to his office on the curiosity
February 11.
seekers and those who only want
Transfer of the Exchange mem¬
Kocher Over-Counter
something for nothing—whether it
bership of the late Henry
W.
be statistical reports
Trader for Paine, Webber
or an opBuckley to Samuel H. Robinson
tunity to absorb information that
will
be
considered by the
; MILWAUKEE, Wis.—Glen EL
Ex¬
you have expensively and labori¬
kocher has been appointed trader
change on February 11.
ously compiled. And those leads of over-the-counter securities for
Richard S. Barnes, member of
go into a dead file that is checked
the
Milwaukee office of Paine,
the Exchange retired from part¬
against future advertising returns,
nership in Brinton & Company on so that the next time these repeat¬ Webber, Jackson & Curtis, it has
been announced by William Weg—
January 31.
ers show up,
another good sales¬
ner, resident partner of the Mil¬
John J. Neff, member of the
Transfer of the Exchange mem¬

that

coverage

uninhibited service to

But

changes:

Clifford

anybody is, in my opinion, only
written by people who wish to sell

Robert

limited

ner
a

S.

Gordon,

general

partner February

1.

in Dean Witter & Co., became

limited partner

country. This territory has

February 1.

once

again.

Look for the

good "number two"

prospects and the "number threes"
and
when you find
them give
them more of your time and the
best

attention

and

service

which

waukee office.
Mr.

Kocher,

business

career

who

started

his

with the old North.

Avenue State Bank in

1927, joined

Paine, Webber, Jackson & Curtis
in 1936 as a bookkeeper, and ex¬
cept for 2V2 years of military ser¬
vice in World War II, he has been,
with the firm, since that date.

capable of rendering. I
been
characterized for years by
would rather acquire but fifty real
mention in
Royal Bank Appoints
Four With Waddell Reed
passing that the rapid and extensive industrial
good accounts after an intensive
The Royal Bank of Canada has
(Special to The Financial Chronicle)
making of new highs in any growth. With its many natural ad¬
sales effort along the lines I have
BEVERLY HILLS, Calif. — been suggesting here, than clutter announced
the
appointment of
average
(or1 new lows) no vantages there is every reason to
Albert H. Burt, Loraine J. Mc- up my books with hundreds of Frank E. Case as Supervisor of
longer is indicative of any im¬ believe that this trend has not
even yet run its full course—cer¬
wasters
and
Williams, Wanda Montwid, and time
fly-by-night Investments. Mr. Case has been
mediate move in the direction
tainly it has continued apace in Albert I. Peterson have joined the bargain hunters. The investment
with The Royal Bank of Canada
of either the new
staff of Waddell1 &
business needs customers who will
high or the the years since Hhe end <of World
Reed, Inc.,
?"v
new low.
;
There are probably i War II. Such indicated further fu¬ ^ 8943 Wilshire Boulevard;
buy securities for «income and since 1928.
not

.j

we

months

Southern's

picture

able.

4C

the

(3) those who wish to invest.
the talk about salesmanship

books.

however,

than four points, to 70.4%,

look

the way of

extensive

the

—qualify

situations and who will not adopt

maintenance

planned.

are

the sidelines.
«

star

separated

possibilities for operating econo¬
probable 1952 earnings mies have
by no means been ex¬
at between $15.00
and $16.00 a hausted.
common
share. Last Tuesday, it
The breakdown of expenses for
was
announced that actual earn¬
the full year is not yet available.
ings had come to $19.13 a share.

block

other

the hero

trying to be a
salesman—hit the '"soft spots?*

One Hundred Leads

ber. The economies expected from
the latter have not even yet been

had placed

Finally,

no

fellow be

other

and waste his time

security buyers
into
prise was obvious in the six-spurt
fully realized. Other projects are three major groups: (1) The cu¬
in the price of the common.
now
being planned. Further riosity seekers who waste your
The 1952 earnings results that
streamlining and
mechanization time; (2) those who buy special

to

which

the

let

Paine, Webber Firm

space
a

do the

Clifford L. Hey With

analysts

again.

upon the acquisition of!
same light as they
picking of a horse at Hie
race-track. Find the investor*—

securities in the

advertising cam¬ can only do well if you have good
full cooperation customers. The best salesman

operating ratio for the 11
and no more than four aces. Your
through November. The
advertising has created interest.
most impressive part of this show¬
the ideal
hood that some extraordinary ad¬
way to make money.
It is up to your salesmen to find
ing was the dip of 2.2 points in
*
*
*
the aces. And right here is where
justment must have been included.
the transportation ratio to 32.9%.
Be that as it may, the earnings
many good
salesmen fall down.
As recently as 1949 it had been
However, be that as it may,
reported represented the best re¬
They try to sell everybody. They
the belief is there and it is sults for
running above 38%. At the pres¬ waste their fine talents and their
any period since the war
ent level of revenues each point
strong enough to have an in¬ peak in 1942. Even the new divi¬
years of accumulated "know how"
shaved off these ratios is equival¬
dend rate of $5.00 annually rep¬
on the "jokers."
They try to hatch
fluence on the price structure
ent to a little more than $1.00 a
resents only a modest fraction of
the china eggs. So they work on
of
the
stock
in
share, after Federal income taxes. unprofitable accounts—they try to
question. the available net.
Whether its influence is
sell the "number ones"—they offer
long
Most
railroad

original

who look

-

possibility. The extent of this

apparently

split-ups in that group
becoming quite com¬

now

in¬ long-term capital gain, not people*

more harmful to sales morale than
important than your sales ability
help but en¬
—find them!
pleasant surprise last week. It had hance Southern's traffic potential. to start something and then let it
die on the vine. If you have leads
Next week's column will deal
been taken for granted that the
Southern Railway has gone in
follow them.
If your
with the right way to arrange
salesmen
Southern Railway dividend would
heavily for dieselization. With de¬ don't follow your leads why ad¬
an
appointment over the tele¬
be increased fairly soon. Earnings
livery of units now on order vertise (except institutionally)? I
were expanding
phone.
:
rapidly, financial (scheduled for
delivery during the would not pamper any salesman
condition is strong, the company
next couple of months) all opera¬
one
minute who refused to go
has made substantial progress in
tions will be virtually 100% diealong on a sensible planned cam¬
arranging for the 1956 bond ma¬ selized. As this
part of the im¬ paign.
Those
who
cooperated
turities, and the capital improve¬
provement program has neared would get the leads and the others
ment and equipment programs are
completion the management has would not. The only way to do a
well along and should be less of
turned its attention to the yard
job is to make it a team job. En¬
a cash drain from here on.
Thus, and terminal
problems. Modern¬ thusiasm and cooperation are the
the company can well afford to be
ization of the Knoxville yard was handmaidens of a successful sales
more liberal with its stockholders.
completed in 1951 and the new organization.
The surprise came in the decision
push-button yard of the Alabama
of the directors to split the stock
There Are Only so Many Sales
Great
Southern
at
Birmingham

earlier

-

to be the favorite babies.

seem

is

4e

rails

received

The financial community had a ture
growth can not

„

two-for-one.

*

The

as a

•'

*•'

'

have

you

start out

♦

•

So far this hasn't gone bej

is held

After

any

of the quiries from
your
advertising,
They are presented as your procedure is to begin a sys¬
those of the author only.}
tematic campaign of following up
every lead that you have acquired.
Time and again I have seen col¬
lections of leads and inquiries lay
around an office only to gather
dust and finally end up in the
Chronicle.

.

❖

ment will be

(Article 5—Part 1)

paign * without

of stocks.

==

"The Right Way to Follow Up Leads"

those

potential buyers and hold¬

ers

By JOHN BUTTON

BUILDING AN INVESTMENT CLIENTELE

this

in

necessarily at
with

thinking

mass

============

went another.

are mere¬

various ly handy tools to keep around;

Securities Salesman'sCornei

you

are

>

.

•

30

The Commercial and Financial Chronicle

(606)

CUTS

TAX

With Vilas & Hickey

definite

New
»jfj.

York

Street,
of the
Exchange, an-

Stock

nounce jthat Alfred J. McArdle
now associated with the firm.

Mutual Funds
By

1952

hydrogen bomb in
eventful period cov-

the

is

ered

Investors'
Anniversary Report to
published

shareholders,

I MUTUAL INVESTMENT FUND,

°Penec*

Established 1930
120

Broadway

New York 5, N. Y.

'

anginal value of the shares—had
distributed to shareholders

in

Total capital

interim.

the

the

in

crease

in-

decades

two

was

The year 1952 contributed
this record.
Net asset value

342%.
to

share rose from $19.55 at the

per

the

of

beginning
the end.

at

year

currentiy seek investment opporlunities in that atmosphere.
.
.

No

the

been

appropriations
for
military expenditures for the currpn^ year have already been made,
take

Their

...

Income divideilds,

durmg

interruption

totalled $8,394 per
the

of

come

tion

dividends
the

in

paid

first

of

year

than

10

the

fifth

in-

opera-

year

By

years

from

less

were

share.

the 20

share, or 138 ^
share value.

beginning

Annual

.

paid without

cents

per

incorne

dividends had climbed to 37

cents

;

INEWYORK

the twentieth year of operation—■
the Fund

paid 90 cents

But>

CENTLEMEN: At

no

obligation please send

prospectus on

Canadian l und.

fected
couid

in

time

this

mutual

assets, to become

one

the

country

owned

mutual

a

—

by more than

41,000
estates,- corporations

institutions.

"Now,

fund

expjrati0n of price controls,

the

Willingness

take

risks,

their

of

against loss.

aeceleration of the defense
The administration of

that risk

lUl

ten

me
prospectuses describing
Organization and the shares of your

Funds.

long-term
hp
oe

pan
can

thp
tne

selection

agement of

IBoo, tne

shareholders

Fundamental
of panital nnrJ
Ot capital ana

profit,

gain in

and

value

of
Ot

upward
rewara

parp
care-

prudent

man-

stock invest-

common

Citing

the' Changes that have
place in the years of the

taken

lire, the report goes,
"The extent to which

say,

dltions

Address.

«

City......

..

dpmandc

and

for

to

on

con-

rtT-odnpfc

Gemanas lor products

a

cnanged during those two decades
eives ample
proof that no in-

State.

dividual

common

7?

the economic

stock

can

change

as

it

nela

in

has

at

ferent
iereni

the

of

degree

•iWfiTSSSa'S:

in

.

.

suit

in

companies

of

petroleum,

35.2%

Of

portant

Fund.

the

increases

stockholdings

During

were

the

made

companies

in

time

another,

than

stocks

stocks,

stocks.

come

the

20
Hue

l investors, has
or

more

common
common

In

Tnvpctorc

400

indif-

hondc

oonds

Assets

at

r»r

or

Dec.

of

These
total

im-

year

in

in

common

the

elec-

<

gSSi.automobile and naturaI gas ln"
Securities

added

to

holdings

in

the

12

months ended Dec. 31, 1952 include American stores Coi'P '- American Tobacco Co.;
Columbus & Southern Ohio Electric Co.;
Florida

Power

Corp.;

Gulf

States

Utilities

Co-' General Public Utilities Corp.; International Petioleum Co., Ltd.;. Lily-Tulip
Cup

Corp

Inc.;

.

P

Lo^ard. Co,;

Mission

Development

Inc<:
Niagara
Owens-Corning
Reynolds
ft

Gas

Corp.;

Merck & Co.;

Motorola,

Co.;

Mohawk ,-Power
Fibeiglas
Corp.,

Tobacco

Gas Co<:

Co.

"B";

South

Corp.;
R., J.

,

Shamrock

Carolina

Oil

Electric- &

Southern California Edison Co.;
Natural Gas Co.; Standard Oil

California;

Studebaker

Corp.;

Texas

Co-: TeXa» Pacific Land Trust, and Texas

'eliminated
holdings

during

1952

from

the

included

Fund'.,

ver

&

Edison of New York, Inc.; DenRio

Western

Grande

RR.

Co.;

Electric Bond .& Share Corp.; Fireman's
Insurance Co. of Newark, > Humble Oil &
Refining Co.; International Business Machines

Corp.;

Jones

&

Laughlin

Steel

Noranda

uiStod suLX'ce!
corp.—an

common

stocks,

in

addition,

the Fund's holdings in El Paso Natural
Gas Co- $4-40 Preferred stock were converted infco coramon stock of the-same
company

and

its interest in

stocks of Standard
were disposed of, as

Gas

&

the

preferred

Electric

were bondholdings
Missouri Pacific RR, Co
and the st

san

Francisco

Cor¬

consider

implications

the

of

State

eco¬

President
the

of

Co.

in

L&oui

Ry. Co.

BALANCED FUND

Prospectus

may

FROM

TOUR

INVESTMENT

DEALER

ducing
and

200

Parker

good income pro¬
stocks tp bonds

a

preferred stocks."
recorded

net assets

$3.2 million increase

a

during 1952 to boost the total-

tion's

$15,135,481 as compared with $11,927,240 on"

Chairman, JHenry J. Simonsaid the domestic pro¬
outlined in -the speech was

Jr.,

son,

gram

encouraging to business. Removal
of

price and material

wage,

trols

should

be

helpful

the

added,

affirmed

Message

the

con¬

with

all, he

clearly

re¬

com¬

but

tion's

policy

and

the

of

sources

President's

fiscal

commit¬

actually

are

chief

The

only compatible

international

our

ments

not

na¬

strength.

Temarks

the

debt

on

man¬

agement program sli 0 u 1 d reas¬
sure the security markets, the re¬
search

staff

placed

was

noted,gas emphasis

menting the
be

must

caution

on

year-end

Total

i952,"

in

imple¬

assets

net

$17.14

to

share

a

fect

gradual,

bond

connection,

shares

outstanding

fied

vtsvaa

with

87.49%

stocks,

remainder




BOSTON

533

in

31
in-'

pre¬

mostly convertibles; and the

in

cash.

,

Among the principal industry groups rep¬
resented in the common stock holdings the
largest in railroads amounted
assets.

net

Other

the

of

eluded electric utilities,
electrical

to 9.88%

larger groups

of.
in-,

7.97%;

8.89%; oils,

6.63%;
aviation,'
food, 4.46%; bev-;
automobile, 3.26%.

equipment,

6,28%; building, 6.85%;

4.;/b%;

ei-ttgc,

and

The Fund closed 1952 with

largest

shareholders,
its history.

6,031

number
'■*

the

were

the

market.

this

In

Message's

assur¬

department

Securities

in
:>

-*

the

of

Research

and

Corporation, said last Sunday that
"retail trade in
to

show

billion

1952

is

estimated

df

about $6

increase

an

levels—a

1951

over

new.

of

Treasury-Federal Reserve high."
„
/:
:
cooperation to achieve stable eco¬
Speaking on the radio program
nomic conditions was regarded as
"Your
Money
At
Work"
over
a

favorable

development.

Discussing the staff's tax fore¬

Simonson, said a Con¬
tax-cutting drive in

Mr.

cast,

gressional

to popular

response

tum

be

to

position

determined

op¬

opposition does not

ap¬

to be forthcoming. President
remarks

"bringing

budget under

the

did not specifically

trol"
the

possibility

before the

of

con¬

exclude
tax

some

Although

Profits

Tax

there

about

cuts

budget is actually bal¬

anced.

were

the
not

was

$80

1951 of $158

momen¬

the ' Administration,

by

such

and

most

creased

Excess

defining

Briefly

anything

stopped;,by

short of the

billion to a level in
billion, a rise of some^
has 103 % during the last six years.!' t

pressure

already gained too much

WOR, Mr. Munro said that "since'
1945, retail trade sales have in-'

broad

the

of retail goods in the duf-J

range

non-durable

able

and

Mr.

Munro

categories,'

the

tempered

basic

dependents of retail trade, per¬
sonal and disposable income, with,
the

intangible

1 important
urge." He

but

:

"customer

of

factor

explained this element by saying,
that
"if
people don't feel like

will save

they

buying

in

even

high income levels, like

times of

mentioned,

today, when there may be periods
speech when the public just stays out Oi
Administration the stores."
•
Vf TV /
7 'I

passages in the

that suggested the

•

was

not too fond

pf this particular
Tn the'

levy and would not stand

if Congress allowed it to

way

ex¬

pire next June 30.'Mr. Simonson

however,'

cautioned,
President's

fiscal

fluid

therefore

and

in

(change

the

thatj

the

arP

still

vieWs
-

subject

to

ahead.

months

;Funds

supervised by National Se¬
curities & Research Corporation

totaled $122,948,000 as of Jan. 31,
1953.

retail

Accrediting

trade, as a,

vital

segment of?
Munro pro-jected 1953 sales, on the basis of
incpjne levels* to ."about $170 bil-f"
and

barometer

our

economy,

:Mr.

lion, another new high, with the
largest increases occurring in the
automotive
and
food
groups.'!-

Fox-Martin, Kidder, Pea-,

Milton

body's Central Mutual Fund

De¬
partment's Manager, was modera¬
tor of the program.
7
1
:
r •
.

,

.

STOCKS have not yet

COMMON

the election of
Eisenhower,? W. Linton
Nelson,
President, said
in
the
Delaware Fund annual report for
fully

rellected

Dwight

transmitted

1952

Tuesday.

'

the

At

made

*

point

Mr.

that

Nelson
common

»

stocks, although higher than they
were,

are

still the best long-term

investment
the
v

medium; available

in

at the present time.!
national fiscal policy" during

country

"If

of

TV

stations ac¬

the January bulletin,
"Keeping Up," published by Tele-"
visioh

four

to

weeks

has granted

for

permits
is- at

a

rate

week';7

The

map

Management Com-i

Shares

which

that in

reports
to

Jan.

14

the

new

stations.

of better than

bulletin

contains

?.
(' -4,, <

i

•

rican.

Business Shares
Diversified

Investment

Fund

upon

request

Lord, Abbltt & Co.

FRANCISCO
New York

—

Chicago

—

This
10

a
a

of the United States showing

'

A

the
FCC

42 more construction

hh.vv ;71
;fc.

.

of new

scores

cording

pany

-

time

same

the

tcb shareholders

YEAR will mark the debut

THIS

Ot

Montgomery Street

SAN

in

assets

net

10.2%

BOSTON

24 Federal Street
19 25

a

divers!-,

securities
of

stocks;

common

jn

ferred

different

81

among

industries

Berkeley St., Boston, Mass,
'FOUNDED

882,764'

investments

INCORPORATED

Corporation

31,

Dec.

on

the

on

Action JOHN A. MUNRO, Vice-President*
President in charge of the economic and

out hastily it could
dangerously unsettling ef¬

the

of

new program.

carried

on

share

showed

investment

a

equal

were

a

716,827

on

report

National

be

high

previously.

pushing out debt maturities
to

all-time

an

shares outstanding as compared with $16.64'

said. If the Treasury's program of

have

to

1951. '

31,

The

principle that

are

Dec.

many

petitive enterprise, and individual
initiative

the

year

to

industries, he said. Above

EATON & HOWARD

or

very

common

The fund

Prospectus
The

could

we

at

PROSPECTUSES OF THESE TWO INVESTMENT FUNDS MAT

be obtained

from investment dealers

switch" from

STOCK FUND

OBTAINED

levels

experience a decline in the
prices of" fixed income securities.

EATON & HOWARD

RE

on,

phi¬

Message the investment organiza¬

t

A Mutual

the

well

in

■

EATON & HOWARD

Investment Fund

went

he

abandon

and let interest rates rise to more

realistic

Union

Atlantic

Refining Co.; American Telephone & Telet-^aph Co., Commercial Credit Co.; Consoiidated

according to Na¬

Eisenhower's

the

!,tlJliU581 and railroad for
industries.
industries now account
assets

expenditures

special staff meet¬

a

to

Eisenhower's

pear

prove

to

years

since 1933."

one

preferred

high

a

coloring Of the time. Corp.; Mission Development Co.;

Fundamental

vestments

.

to

supervision will
necessary

>

STOCK can

cnameleon-like,

vears

require

stocks

of

Funds

D-58

Name...

investments in this atmosPbere, under these conditions,
•

•

Southern

mpnts "

Please send
your

♦

^

for

taken
t>>rv

not. speculative

—

the

in
:

as

management Of
Investors is increase
ah vesiuis> lb increasp
but

guarantee

Investors has

sought

income

to

what

be—without
or

by

that
xnat

50 Congress Street, Boston 9, Mast.

will

profit

'

*

on

investors

knowing

"Now

?

Pro§ram•

called

nomic

year,"
to

be

and
manager
of mutual investment We feel, therefore," he continued,
"it is still not a good * time to

Following
ing

coming

"should

re¬

sponsor

group

funds.

consumer's

the

for

a

the

_

A word of caution was sounded,
however, in the observation that,

Each shareholder of

Fundamental

reward

of

not

rewards

assurance

The Keystone Company

be reduced,

ance

rl" disenmmahon."

as

capitalistic system depend

our

COMMON STOCK FUNDS

now

April 30, 1953."

t f

will

:

in 1933," says the
port, "the vitality of American
free enterprise and the vigor of
.

BOND, PREFERRED AND

benefit substantially by the

kept pace with demand despite

and

Custodian Funds

by the excess profits tax,

947,014

that

individuals,

Ke

more

spending is likely to
Resulting declines in

fund grew from $100,000 to $150,-

now

-t

goes

develop-

dollar is becoming more intense,
Civilian production in general has

in

atr

become

of

income,
1953

critical, delevel
off.
sales
and
pre.tax
earnings
of some
companies
will
be
partly
or
wbolly offset if the expiration of
|be excess profits tax takes place
on June 30>
1953
Many cor.
p0rations, including some not afments

fense

of the largest common stock funds

Address.

and

year

international

un}ess

on

the

as

"Competition

in income.

During
■m a

share

per

be

to

business

|n

employment

Pf ^.fe' $ ]hecents. In 1952—
tenth, 40 cents;
the fifteenth, 49
Buiilock

continue

win

force

world; will
resujt in continued high activity
in certain industries; will benefit
£ejj.

^

months was7.6 %.

.

new

Washington

in

Administration
may

to^$20.58

profits disiributed during the year the total
gain m the
vslue for the ■ 12
security

the

action

what

matter

Adjusted for 46 cents

share

per

Inc, was 97.9%Com-

InvestorS)

war-like economy and must

a

ko

a

amount exactly equal to

an

RESEARCH CORPORATION

*°.r

value of $20.58 at the
year-end
in
1952
even
though
jecunty profits of $6.06 per share

1933, had

Funda-

year-end

menting on the management's apprajsaj 0f business in 1953, the
rep0r^ states,-"Today we are still

^

the day the Fund

worth $6.06 on

1952

inves^ecj jn common stocks.

shares,

Investors

the

mental

Wednes-

dayFundamental

stocks of companies in
than 20 different industries,

At

which

a

the

Thursday, February 5, 1953

.

losophy
of
low
interest
rates
determining originally borrowed from Britain,

before

revenues

extent to

poration,

115

common
more

Fundamental

by

Twentieth

NATIONAL SECURITIES &

still

are

despite

tional Securities & Research

1952 were spread among

31,

the

to

1933

in

Prospectus from your dealer or

the

ROBERT R. RICH

HOLIDAY

BANK

THE

FROM

INCOME SERIES.

duce

can

is

NATIONAL

year

Administration's reluctance to

Vilas & Hickey, 49 Wall
York City, members

New

this

possibility

.

.

Atlanta

—

Los Angclc*

Volume 177

Number 5192

.

.

The Commercial and Financial Chronicle

.

the TV stations authorized in the

KIDDER,

of the

Exchange

fund

The

Board

of

Directors of

Stock Fund has declared

y

on

February

per

20,

shareholders of record

to

Money

an-

Peabody's

Work."

'

the

}

?,

exnansion

fund

investors

10

everv

states

M

+u

is

the

share-

of

The report listed

according to
by the magazine, "Trusts

survey

Estates."

and

The

corresponding
$819 million,
The reports from the trust companies adding up to the billion

figure fori 1951

dollar total

was

dated all the way

were

A

special study of
funds

composite

funds

FUND

term jpcpspects

lished

-pTTNnQ

re
66

FUNDS

^

be obtained from in¬

may

dealers

Francisco

or

from

the

Govt.

.- $184,078,456 $202:981,328

Bonds

Other Bonds.-_i'.

California.

4,

imitHlilfriWI'llll IIIMHI—iMI "
-

53,754:293

Stocks__"__l

Pfd.

ennnn

09,229.607

„o

tcn

82,726.559

and

products

rest inue?ill?les

1

.

new

increased

,

i

1952

thn

Fund

year-end

value

of

$11,435,835 in

the

as

of

the

mutual

cyclical steel and
reduced. Some

J
were

During

at

pioneer

"no

"balanced"

or-

was

load"

naid

shareholders

$2,291,380

dends

investment

and

from

to

divi-;

in

income

$1595356 in distributions of

gains. Investments of the
had

cost.

market

a

excess

of

'

type, the

investment company or'NET. ASSET VALUE of
was
in
the
early holders' Trust of Boston

fund

value of all such companies then
in existence totalled little more
than assets now comprising the
Scudder, Stevens & Clark Fund."This is in sharp contrast to the.
s*ze anc* importance today of mu-.
*-ual funds, whose assets of about
$4 billion comprise 80%
as

Shareat Dec.
31, 1952 was $26.85 per share and
total shares .outstanding were
325,680 making total net assets of

$8,744,"788 for the year, a gain of
$1,911,472 over the previous 12
months, the annual report to.
shareholders disclosed Monday,

ir ■"*

.

On Dec. 131, *1951, the net asset
value per share;, was $25.90 and
total

shares

.

outstanding

were

against [ess than j% j„ 1928_o£. 263j787.

others considered less attractive thei assets of! all management in;
reduced.
The
7

New records were also estatn

Fund

open-end

^

metal stocks

■*

realized

fund

well-estab-

• were

historv of the Fund

ug approach that empha- lished in value of the shares and

ganized

gov-

^

84,655,478

'

nnn

wirWirpaH

was

In 1928 when the Fund

This group repre-

nTVTTRqTPTr*attow fn?
DIVERSIFICATION OF

these

were
led
by oil
$6,225,600, with public utility stocks valued
at $5,496,963 second in
importance.

range programs.

than 300

more

ferreds; and 8% in cash and
ernments.
\

common

following
comparing

funds have been established.
describing

Company at 2529 Russ Building,
San

66

the

Best Sc

of

me*e.was widespread nisiory oi me.r una.

*.

investors,

The report gave this summary
of hthe shifts in common stock
sents both large and small funds,, holdings during the year: Stocks
and all parts of the country where of companies with favorable long1951 with 1952,

COMMON

vestment

shows

portfolios

ings

grade bonds and preferreds; 3% in stages of development, Mr. White
.appreciation
bonds
and
pre-, observed.
In fact, he said, "the

from Jan. 31 to Dec. 31, 1952.
trust

3,000

Union Gas, and
year-end hold¬
stocks
valued at

The

and old alike, are turning to
mutual funds as a suitable medium for adding equity investhients to implement such long-

securities in the portfolio. These
included 37 corporate bonds, 85
pieferred stocks, and 184 common
stocks. Common stock holdings
represented more than 30 different industries and accounted for
64% of total net assets. Of the
balance, 25% was invested in high

billion dollars,

a

Gas.

short-term capital profits, number of shareholders, now in
Today, there is more interest in excess of 21,500. The net asset
building future purchasing power v value at year-end was $19.12 on
frona current income to supple- 3,215,833 shares, compared with
ment savings, pensions insurance $18.41 on 2,808,452 shares at the
an
-°Clal se£unty-. Als°' an in~ same time last year.
creasing number of

on Dec- 31> 1951-

com-

nation's

the

Electric,

Brooklyn

nnZ!$

^ $20-87 a share on the 11,794,639

benefits

companies have increased in
years from
$60.4 million to

over
a

funds

trust

ten

Prospectuses

o"?

s^res outstanding on December
?£' i
1°'° a fcta^-°"
the
9,688,24o shares outstanding

mon

A

■

Wol1-

with

in

of

United

of

stocks, 33%

common

thoro

ago

«

f

fund investment."

trust

*

years

United

fund

derived from

TRUST ASSETS managed

City

10,000

in

out of

one

in

mutual

a

large audience

f|
STOCK
tm pw

of 52.3% in

** h®hL
ofQrW.ellingto"
f™d d"rJng ^e year increased

the

Atlantic

Co.,
7,300

*

merchandising and promoprogram
designed to acquaint,
by
proven
methods,
a
tional

a

of

year

"
+°+uera1^ distribution of
^ af?t0s^
end ot 1952 consisted

+

holder.

step in

our

Minneapolis, Minnesota

one

u

exPansl0,h and he estimated that

"constitute another

ments

a

outstanding

earlier.

pre-

A

Sundays,

on

+

shares

$193,-

the

cash, bonds and preferred TOTAL NET" ASSETS of The
stocks of high quality, and 14 .7% George Putnam Fund of Boston
in bonds and preferred stocks of at the end of its 15th year, on
fthe P10™ers, "J. a" indust7 lower
Dec. 31, 1952, were at a record
™
.en ,llttle Jf130™11 ,to
In the report, which reviews high of $61,492,000 compared with
^eriS^iinVeSi0rS\ oday,
aspects of the mutual funds field, $51,702,000 a year ago. This irtpe°p?:r everywhere in all james N. White, President of the crease of nearly $10,000,000 was
life, own mutual funds; FUnd declares: "Twenty - five the largest for any year in. the

Fox-Martin, the company's
central mutual funds department
manager, said that the announce-

President

stock

'

?§

2

Milton

h. k. Bradford,

At

Announcing

January

1953.

30,

program

of

the 1952 reP°rt marks the beginning of the Fund's 25th anniveryear. «e recalled that Weib?gan operations as one

mutual

The

Kidder,

augment

"Your

share

1953

of

as

instituted

programs

sponsored

quarterly

dividend of eighteen cents
payable

day,

Investors

a

close
•

nouncements. which started Mon-

Notice of 30th Consecutive
Dividend.

the

tu^Q^orgai\ P°ln,ted+

Stock

participating announcements

Henderson

$246,183,017 from
at

Company,

the Barbara Welles and Skitch

on

STOCK FUND

&

New York

have

of

930,722

Peabody

members

high

'

past six months.

vestment

companies.

rs

Puring 1952 dividends of $1.17
share

per

paid from net jn.

werc

-v™-.'aT^ontaTnVir7a7ce"7nd N E T A S S E T s of Broad Street vestment income, and 46 cents per
»■»• stoefarj. 245,303,942 30»,to9^i.
Investing Corp. increased in 1952 share was, distributed /from net
Other
6,999.057
10,911,300
hLinv Hwn m nriccl that fn' to $31,020,634, the highest level capital gains. In the preceding 12
Total
$559 425 355 $683 214 006
Beared to have discounted them
ever attained by this 23-year-old months, dividends of $1.21 per
'
'
'
'
nearbv
outlook
Natural
ras
mutual fund. This record figure share were paid from net mvestThe number of common stock
",®a™y
educed' before the rePresents a 27.9% gain over the ment income, and 58 cents per
issues held in
■

-

-

.

: is

discretion
fundln 1951

1951

any one

ary

17Tl38t0 U6'

THE COMMON

f om
from 17 to 138.

KEYSTONE

STOCK FUND
f

.

'

Hust

common

Inc.
its

OF

.

of

year

47,500

±111>
This

combined

sfatemeht

in

=to;hs good long-term prospects,
and issues considered to
have

chairman , of -the Board and Presi- of preferre^'stocks and lU% S
d
f
72fi
;nvp„tnr„
h„lfi
ot pieienea siocks ana id.o /o oi

had

compares

^UiIluaics

of

super-■

in
its
10
with total
WAtll

LWtclJL

$213,000,000

a

earlier. Part of the increase

year

in assets

during the last

due to the

in

its

under

assets

the

purchase of

various

year was

shares
and part

new

Funds,

was

a

on

prospectus

from your

Distributors
63

investment dealer

due to market

the

request

Group, Incorporated

Wall Street, New York

The

the

common

with

Funds

the

of

total

Keystone
1952

the

inon

was

primary obinvested

assets

Keystone Funds
Pnced

in

was

the Low-

the Income Preferred Stock
the

and

in

Discount Bond Funds,

ar.d

Fund,

High-Grade and Income

Common Stock Funds. Only 9.5%
ed the

assets

invested

was

in

the

Speculative Preferred Stock Fund
and
in
the
Speculative
and

INVESTORS'

About

CHECK LIST
series ii

17.5%

"B1

relative

the

invested

was

Funds

Bond

Funds.

Common

Lower-Priced

and

in

the
for

B2

stability and modest

income returns.

□ PRINCIPLES OF INVESTMENT—
An original and lucid study of
based

fundamentals,

on

many

of thorough research and
practical experience in fund man¬

years

agement.

A

□ STUDY OF INVESTMENT OF PENu

Since

Fund

was

J

py

The

jpublicly of-

has made total payments to
shareholders from net investment
pany

of

more

than

en earnin4»s-

principal
included:

year

^merican

new

common

$87,000,000,

shares

15,000

Chesapeake

]6'00()

Corn

Ohio

&

Ry

7 qoo

Products

International

included;

stock ad.

common

iast.half

7.200

shares

of

u 000

celanese Corp.; 10,000
Edison

6 000 Corning

Glass Works; 4,400

Motors;

4,500

Procter
o

of

Liggett
&

rvnv,rY-,rii

&

Gamble;
oc

NY"

Illinois

9,000

7nn

be

used

and

a

comparison

of

ized

capital

gains

of

from

real-

more

total distributions

and

than

results.

$45,000,000.
For your free copies
—check items you
advert isement with

of this literature
wish—mail thii
your personal or

business card.

Kidder, Peabody & Co.

A
,

$52.2
,

Exchange

MILLION

net

total

assets

.

was

10,700
Cnrnnv

Vacuum; and 11,000 Westingriouse

Electric.

nual




as

of

recorded by

report transmitted to stock-

ASSET

Stevens
Dec

&

value

c]ark

of

Fundi

31_ 19g2 amounted

to $39,617,682, equal to $58.32 per
.,

share

on

„_n

,

ono

the 679,298

to

the

today

President,

assets

by

Walter

boosted

L.
net

according

Twenty-fifth Anniversary

Annual Report of the Fund issued

at the year-end to a record

to

stockholders.

with

asset

value

This
of

42.9%,

sented

public

of

shares

companies

$1.10

share

per

investment

in

f

36%.

in-r

1952,

dencl income for shareholders who

1952 amounted to $3,743,476

have reinvested distributions from

to

gain

3.4%

$3,158,894

mo

earlier according to the annual

investments

on

was

$14.66

a

equal

share, compared with

or

$13.27

a

share

a year
X

for

greater than for 1950. rep0rt for 1952.
' The asset value of Broad Street
Investing shares gained in 1952 to
$22.83 at the year-end from the
previous year s $21.57 desmte a
45-cent year-end distribution
°" investments. With

The fund.s holdings of common
stocks comprised 79.1% of net aswhile

se£s
p

of

holdings

and

cash

s. Government securities com-

prjse(j

the

of 20.9%,

balance

of

net assets

increase intoper share asset value NET ASSETS of Wisconsin Invest¬
amounted
7.9%.

According
Investing

the

to

made

compares

$36,374,316,

equivalent to $57.06 on the 637,498

ment

Broad

report.

material

no

about 90%

position

net assets.

of

SiraSrsHsinnd
the

This relative
through

been" maintained

has

planned,

in

and at
the
again made

position in 1952,
common stock r'sks

year-pnd
up

Street

change

investment

'm.tor'JLng'Tis
added,

report

in

m

1952.

the

Company showed a gain of

$534,407 during the year 1952, as
indicated
nual

the

in

mmmnn

represented,

In all, ten new securities

deleted from

addgd &nd eleyen
portfolio>

In

that

effort also

longer-range

the economic situation,

might

deferu:."

add

capital gains distribution. Of

$<U2 peJ
year-end.

secu¬

was

made to

mon

s^aur.e waS ?4'27 at
This

compares

an

take advantage of

fourth quarter

were

10,000

Cincimiati
steel

20,000,

~if'ic
from

were

American

shares,

of 1952, 20 com-

increased, Among

Natural Gas,

Borg-Wamer to

Milling^Machine^to
Products to 16,300,

National

Lead

to

per

1952

quarterly
made

were

totaled $0.18

which

share.

been com-

Arrangements have

pieted providing for a Systematic
Investing Plan through the facili¬

portfolio

of
is

5,000,

a

plan

to

shareholders
to

Maytag

to

Pa-

set

aside

encourage

and
a

new

given

periodically for the

shares.

present
investors

amount

purchase of

wisconsin - investment

Eliminations

included 1,200 shares

Bank

Milwaukee, the custodian. This

raised

13,000, and

Gas & Electric to 21,700.

the

during

payments

with

end °f the

ties of the Marshall & Ilsley

stockhold,ngs

these

dividend

strength

appreciation.

In the

to

a

opportunities for income and capi¬

unusual

tal

with

portfolio were favorec, a.though

the

to

keeping

the

navment

after

<;tork

common StOCK, alter payment
Of a

per share at the
utility holdings previous
year.
Four

public

and

increased.

were

an-

company s

Net asset value of

report.

&hidduastPryrtweraer newly $4>17

troit

Morgan,

-

ciose of last year, eqmties of

maintaining the NET ASSETS of Wall Street Inpeak level reached in 1950. Divi- vesting Corporation as of Dec. 31,

,

shares out-

standing on that date,

corP°ra^e„'^onds/ ;
}
amount of common stocks held at

which empha- utilities, 14.4%, finance
railroads, 6% and
investment ob- insurance and

an

from

for

come

rities

Scuddel.

as

paid

dividends

viewpoint on

NET

T0TAL

,

,

according to the 24th an-

crease,

Uptown Office 10 E. 45thSt., N.Y. 17
Ml'rray Hill 2-7190

,

Wellington Fund in 1952. ^The in-

holders
CF-7

in

increase

jective,

S^arp & Dohme, , 25,700 Soc^ny

Jnc

,

,

Founded 1865

Members New York Stock

.

Street jnves-ting

sizes income

Myers;

SION PLAN FUNDS—An examina¬

tion of different methods that may

as

industrial corporations repre-

1932

(^ojisolidated

5000

at-vear-end

According to the report, Broad

„

American

T0153CCO; 5,000 American Viscose;
o000 Atchiscn> Topeka & Santa

p0Wer;

shares

,glo0the
1,123,876 shares the year before.

I^1S distribution added back, the

Reynolds Tobacco "B "

'The inci al
ditions"in the

Fe;

1353434

against 5 950 shareholders nwninc

•

Refining/
Harvester;
8 000 McGraw Electric; 17,000 l\Tational
Biscuit;
25,500
National
Dairy; 12,000 Pittsburgh Plate
Glass; 18j0oo Rayonier, Inc.; and
4Q Q00

1 ? mul"al Trust of Boston, at market values
hV^Francis FBandolnh
?et' 31' 1952> f°"siste,L^
™ ?

Telephone & Telegraph;

2o 000

fered, this large investment com-

income

-

™ade
ra^ sI°chs, principally in
*be eastern railroads. Agricultural
machinery stocks were increased

General

May, 1932, when the first

Keystone

.

stock positions in the final hali-

Funds.

stock

jective of income. More than 73 /i,

Professional,

--

appreciation in

emphasis of
throughout

vestors

5, N. .Y.

,was substantially increased
?s their outlook was considered
improved, increases were also

portfolios, especially those of

the four

The P°rtfolio °f Shareholders'

S,

company

shareholders

Funds.

JU1IU,

net

from

ing. The Fund increased growth

operations,

assets

T*,

distributed

was

long-term outlook is still promis-

including the electrical equiovision of more than $225,000,000 ment, glass, and paper stocks. The
on
Dec. 31, 1952
and more than investment
in
food and soap
combined

Group Securities, inc.

share

Funds,

CUSTODIAN

investment

an

21st

year-end total of $24,250,467

tre^i^reS^f ^
^nt rr de?Sons?although thmr

Company

32

Fourth: Receiving from therest biggest force is - not - necessarily ,*
the world,
in equitable • ex¬ the best—and we want the best. "
change
forwhat
we
supply, , *; We must -not let traditions or :
greater amounts of important raw : habits of the past stand in the *
materials which we do not our- i way of developing an
efficient :
selves possess in adequate quan-. military force..
All members of

[Continued from first page

of

,

tities.

State oi the Union Message

our

III

'i

' flag

■

.J

equality of op¬
In this general discussion of our
portunity for all, so that our na¬ sustaining the security of the free
tion
will
ever
act
with
the world. From the jungles of Indo- foreign policy, I must make spe¬
China and Malaya to the northern cial mention of the war in Korea.
strength of unity in every task
This war ds, for Americans, the
shores of Europe, they have vastly
to which it is called.
most
painful
phase
of
Com¬
The purpose of this message is improved their defensive strength.
Where called upon to do so, they munist aggression throughout the
to
suggest
certain
lines
along
which our joint efforts may im¬ have made costly and bitter sacri¬ world. It is clearly a part of the
mediately

toward

directed

be

freedom.

fices to hold the line of

the

that

assault

calculated

same

they.

our

single cause.
effectively integrate

and plan

armament programs

in

caleful

such

relation

to

additional

submit

shall

I

study,

for

recommendations

ruling

four

your

con¬

sideration. Today can provide
a

only

and substantial beginning.

sure

II
On

Policy

Foreign

Our country has come through a

painful period of trial and disillu¬
sionment since the victory of 1945.
We anticipated

world of peace
and cooperation.
The calculated
pressures of aggressive Commun¬
ism have forced us, instead, to live
in

a

world of turmoil.

a

From this costly

have learned

experience

we

We

clear lesson.

one

have learned that

the

world

free

cannot

indefinitely remain in a
posture of paralyzed tension, leav¬

ing forever to
choice

time

of
to

means

the

the
and

aggressor

and

place

greatest hurt to

cause

us

^t least cost to himself.
Administration

This

has, therethe definition of a
new, positive foreign policy.
This
policy will be governed by certain
fixed ideas. They are these:

lore,

begun

(1) Our foreign policy must be
clear,
consistent
and confident.
This

that

means

product

of

it

be

must

the

genuine,
continuous
between the Execu¬

cooperation

tive and the Legislative branches
of this government. It must be de¬

veloped and directed in the spirit
bipartisanship.
(2)
The policy
we
embrace
must be a coherent global policy.
of true
-

The

freedom

cherish

we

and

de¬

problem of security de¬

But the

we

facts. All of the devoted work that

citizens

the

best

of

use

our

man¬

and our materials.
Because of the complex techni¬
cal nature of our military organ¬
ization and because of the security

power

gone

elsewhere

creating

envision all peaceful methods and
devices — except breaking faith

and

acquiesce
any

in

We

the

people in

shall

never

enslavement of
to purchase

order

fancied gain for ourselves. I shall
ask the Congress at a later date to

join Jn
making
ment

appropriate resolution
clear that this govern¬

an

recognizes

mitment

kind of

no

contained

in

com¬

secret

un¬

derstandings of the past with for¬
eign governments which permit
this kind of enslavement.

;

-

-

(4)

The policy we pursue will
recognize the truth that no single
country, even

one

so

powerful-as

ours,'can alone defend the

of all

liberty
nations threatened by Com¬

munist aggression from without or
subversion within. Mutual secur¬

ity

effective

means

operation.
this

means

common

est,

For the United States,
that, as a matter of

sense

and

national inter¬

in

the

measure

strive

earnestly

share

of

wealth

the

of

to

that

full
No

for poverty of spirit.

compensate
The heart of

free nation must be honestly
dedicated to the preserving of its
own independence and
security.
every

(5) Our policy will be designed
to

foster

unity
nations

the

in
of

advent

Western
that

of

practical

Europe.
region have




our

initiative in

markets

Navy to

the total effec¬

ities and improve

sibilities

behalf of the Chinese

on

along

these

economic

an

This

can

help from

us.

First:

Revising

obstacles

remove

further recommend

take

customs

our:

procedural
profitable trade.
I

to

the

in

that the Con¬

Reciprocal

Trade

United Nations

our

allies,

structions

that

the

issuing

Communist China.
no

part.

But

shield
on

our

obligation

to

fighting

no

in Korea.

us

protect

nation

a

IV

United States of

Our

of

Military
for

Strength

peace

strong fighting
mendations on this problem, labor service ready for any
contingency.
and
Our problem is to achieve ade¬
management
and
farmers
alike will, be earnestly consulted. quate
military strength within the
Doing

whatever

properly

to

can

gov¬

encour¬

our

of

a

endurable

To

economy.

strain

power

without regard to

investment abroad.

nomic

capacity

a

serious

and explicit
foreign policy, the

our

agement
for

involves,

such

of

hospitable

a

investment

in

purpose
encour¬

climate

foreign

!
of infla¬

menace

tion;/
(5) Work toward
M

possible,

earliest

the

tax

of.... the.

reduction

burden;
V '
>';•
1 \
(6) Make constructive plans to
.

initiative

the

encourage

of

our

citizens.
It

is

that

tion
its

not

does

with

task

cannot

begin

clean slate.

Much

has been written on

already
erase

the

quickly

our power

to amend. This record

or

includes

us

Administra¬

this

and

a

record, beyond
to

of

all

that

important

understand

inherited

our

indebtedness

and

of

burden

obligations and

deficits.
The

current

budget,

year's

know, carries

you

as

5.9 billion dol¬

a

Third:

cal

Availing ourselves of fa¬

overseas

production

ourselves

articles

which

seriously

The

normal

con¬

tion.

:

eco¬

tion

of

effective

our

proper

armed

services,

consolidation

of

needed

with

peacetime
.

are

_

for

sesses

of

must in¬

preparedness.

have incontrovertible

Russia

Soviet

that

atomic

this kind

weapons,

'

.

V"''

•

defense

and

certain

We

must

eliminate

waste

duplication of effort in the

our

and

•">'

.V

"

-

1

-

We

must

size alone is
,

not

clearly

sufficient.

first

This

the

responsible

stockpile of medical, en¬

gineering and related supplies and
equipment.

This

must

work

business

the
be

>

is

annual
achieved

of

all

the

those

in

earnest

the
co¬

operation of the Congress.
Already,
amination

and

we

have begun

of

the

expenditures

nificant
creased

an ex¬

appropriations
of

ment^ in/an effort

all

to

depart¬

find/sig¬

items
or

that j may be de¬
cancelled without dam¬

to our essential requirements.

age

Getting control

of the

budget

requires also that State and local
and

interested

citizens

restrain them¬

selves in their demands upon

the
the Federal Treas¬

congress that
ury

spend

more

and

more

money

for all types of projects.

go

forward without lag.

•

positions

government and

groups-: of

defense

action

concerted

in

is to provide leadership,

strengthen its civil

I

and

everything

merely by exhortation. It demands

ernment

to continue to

of

cannot

governments

technical guidance, and

of

elimination

deficit.

job of the Federal gov¬

to supply

head
do

to

order

any emergency.

The im¬

assurance;

to resolve it.

can

The

one

Department

determined

we

mediate

A

tial

balanced

first

budget is

measure

in

/
an

essen¬

checking

further depreciation in the buying
power

Fiscal
I

have

and

Policies

Economic

referred to

the

inescap¬

of the dollar. This

of

critical

the

steps

is one

be

taken

to bring an end to planned

infla¬

to

able need for economic health and

tion. Our purpose is to manage

strength

government's

if

we

are

influential

to

power

leadership

maintain
and exert

for

peace

in the world.

is to chart

fiscal and

policy that

that

a

The

can;-

finances

so

economic

as

the
to

help and not hinder each family
in

balancing its

own

budget.

Reduction of taxes will be

Our immediate task

realize

this

me

to meet

services.

armed

Every
are

pos¬

protection becomes sheer neces¬

adequate military

not

produc¬

a com¬

responsibilities
primarily belong to the state and
lpcal governments —- recruiting,
training and organizing volunteers

coordina¬

logistics activities.
manufactured

are

we

evidence

inviting another.
Both military and economic ob¬
jectives demand a single national

the economi¬

competitive

own

our

would be to de¬
against one kind

for

mutual defense and which

civil defense

Because

Permit

the

building of

defensive strength

clude

situation will not be easy.

attack fore¬

an

of disaster by

military policy,

nations.

cilities

fend

upon

military

amass

age the flow of private American

This

total

Civil

labor

limits

likely to attempt

No enemy

doomed to failure.

sity;.- ' /

••••

In all Executive

ernment

is

of

in Korea
and in the world imperatively der
mands
the
maintenance by
the

Second:

rent is defensive power.

against attack is still not possible,

certainly have

we

a

pletely impenetrable defense

study and extend it by appropri¬
ate
legislation.
This
objective
must not ignore legitimate safe¬
guarding of domestic industries,
agriculture and labor standards.
recom¬

aggressor,

to

in¬

This order im¬

aggressive intent

Problem

would-be
another powerful deter¬

deterrent

Fleet

Seventh

longer be employed to

plies

retaliatory power is one

Because the

therefore,

am,

Agreements Act under immediate

study and

strong

Korea.
I

no

help includes:

regulations to

gress

lines

environment

those of

While

defensive respon¬

assume

and

themselves.

among

that will invite vital

as

task.

the

broader

Action

of

their

hope that

can

take

services

create

na¬

do

could

we

will

Communists, thus permitting these
currencies, to Communists,
with
greater
im¬
allow greater exchange of goods
punity, to kill our soldiers and

they

common

aid

and

debt

of

.

have

dependable

more

co¬

shall give help to other

we

tions

mutual

.

j
j

|
j

j

j
j
)
I

j

j
;

j

:

i

.

imperilled in Asia.
Our policy,
dedicated to
making the free world secure, will

friends.

inheritance

our

obligations;,
(4) Check the

.

dom that is

our

country

that

of

(&) Properly handle the burden :
of

the European

friends

with

The

,

'' *']:

^^ r/..,,//

lar deficit, and the budget which
tiveness of our defense effort.
into the Schuman Plan,
Army and the Stras¬ proved their capacity as fighting
This effort must always con¬ was presented to you before thi3
men and their eagerness to take a
bourg Conference has testified to
form to policies laid down in the Administration took office, indi¬
their
vision
and
determination. greater share in the defense of National
cates a budgetary deficit of 9.9
Security Council. '
homeland.
Organization,
These achievements are the more their
billion for the fiscal year ending
The statutory function of the
remarkable when we realize that equipment, and training will al¬
June 30, 1954. The national debt
National
Security Council is to
each of them has marked a victory low them to do so. Increased as¬
assist the President in the formu¬ is now more than $265 billion. In
—for
France
and
for
Germany sistance to Korea for this purpose' lation and coordination of sig¬
addition, the accumulated obligaconforms fully to our global pol¬
alike—over the divisions that in
nificant
domestic, foreign,
and tional authority of the Federal
the past have brought such trag¬ icies.
government for future payment
In June, 1950, following the ag¬ military policies required for the
edy to these two great nations and
security of the nation. In these totals over,, $80 billion. Even this
to the world.
gressive attack on the Republic
days of tension, it is essential that amount is exclusive of large conKorea,
the
United
States
The needed unity of Western of
this central body have the vitality tingent ./liabilities,
so
numerous
Seventh Fleet was instructed both
Europe
manifestly
cannot
be
and extensive as to be almost beto prevent attack upon Formosa to perform effectively its statutory
manufactured from without; it can
and also to insure that Formosa role. I propose to see that it does yond accurate description.
only be created from within. But
The bills for the payment of
so.
it is right and necessary that we should not be used as a base of
Careful formulation of policies nearly all of the $80 billion of
operations against
the Chinese
encourage Europe's leaders b,y in¬
must be followed by clear under¬ obligations will be presented durCommunist mainland.
forming them of the high value
This has meant, in effect, that standing of them by all peoples. ing the next four years. These
we place
upon the earnestness of
A related need, therefore, is to
bills, added to the current costs
the United States Navy was re¬
their
efforts
toward
this
goal.
make more effective all activities of
government
we
must
meet,
Real progress will be conclusive quired to serve as a defensive arm
make a formidable burden.
Regardless of the government related to in¬
evidence to the American people of Communist China.
The present authorized governof the situation in 1950, since the ternational information.
that
our
material
sacrifices
in
I
have
recently appointed
a ment debt limit is $275 billion.
the
cause
of collective security date of that order the Chinese
The forecast presented by the out¬
are
matched by essential politi¬ Communists have invaded Korea Committee of representative and
to attack the United Nations forces informed citizens to survey this going Administration with the fiscal, economic and military accom¬
there. They have consistently re¬ field and to make recommenda¬ cal year 1954 budget indicates that
plishments in Western Europe.
jected the proposals of the United tions in the near future for legis¬ —before the end of the fiscal year
(6)
Our
foreign
policy^ will Nations Command for an armis¬
lative,
administrative,
or
other and at the peak of demand for
recognize the importance of prof¬
tice.
They recently joined with action.
payments during the year — the
itable and equitable world trade.
Soviet
Russia
in
total government
rejecting the
debt may ap¬
A unified and dynamic effort in
A substantial beginning can and
armistice proposal
sponsored in this whole field is essential to the proach and even exceed that limit.
should be made by our friends the
United Nations by the Gov¬
Unless budgeted deficits are
security of the United States and
themselves. Europe, for example, ernment
of India.
This proposal
of the other peoples in the com¬ checked, the momentum of past
is
now
marked
by
checkered had been accepted by the United
munity of free nations. There is programs will force an increase
areas of
labor-surplus and labor- States and 53 other nations.
■
but one sure way to avoid total of the statutory debt limit.
shortage,
of
agricultural
areas
Consequently there is no longer
Permit me this one understate¬
war—and that is to win the cold
needing machines and industrial any logic or sense in a condition
ment: To meet and to correct this
areas
needing food.
Here and that required the United States war.
has

fend in Europe and in the Ameri¬
cas is no different from the free¬

(3)

'forces.

Korea

of

(2) Meet the huge costs of our

•

defense;

,

assure

aggressor

public

means among

.

reducing Federal expenditures to
the safe, minimum;,

...

that

facilities

industrial

our

is simultaneously press¬ reasons involved, the Secretary of
mands closer cooperation among ing in Indo-China and in Malaya, Defense must take the initiative
purposes.
The time that this Administra¬ the nations of Europe than has and of the strategic situation that and assume the responsibility for
tion has been in office has been been known to date. Only a more manifestly embraces the island of developing plans to give our na¬
too brief to permit preparation of closely
integrated economic and Formosa and the Chinese Nation¬ tion maximum safety at minimum
The working cost.
a detailed and comprehensive pro¬
political system can provide the alist forces there.
Accordingly, the new Sec¬
gram of recommended action to greatly
increased
economic out of any military solution to the retary of Defense and his civilian
Korean War will inevitably af¬
cover
all phases of the responsi¬ strength needed to maintain both
and
military associates will, in
bilities
that
devolve
upon
our necessary military readiness and fect all these areas.
the
future,
recommend
such
The
Administration
is
giving
country's new leaders. Such a pro¬ respectable living standards.
changes in present laws affecting
immediate increased attention to
gram
will be filled out in the
our
defense activities as may be
Europe's
enlightened
leaders
the development of additional Re¬
weeks ahead as, after appropriate
have long been aware of these,
necessary
to clarify responsibil¬
these

of

which:

deficits

ibtfdget,
other things,
the

andvTheirt<;balance

single

a

a

must

them

mindful

ever

under

serve

and for

We

be

must

forces

that

•

Korean War

The

notably to the effort of

tributed

the attainment of

realization

(FfciRedwce the pla nned

K

Eisenhower Deliveis His First

-

1956

The Commercial and Financial Chronicle ^k Thiwsday-, February 5,

(693)

justi¬

fied only as we show we can suc¬
ceed in

bringing the budget under

control. As the budget is balanced

!

Volume 177*<Number*5192

The Commercial and Financial Chronicle

rv\

(609)

inflation ^checked,c-the -tax. forms.

and

They have proved largely

burden;Ltbat<itod^^/jBtifle^\inma- unsatisfactoiy
live

andi must be eased,

can

Until

reduce
■'

s.

determine the

we can

*

our revenues.

whole

demands

as

The

Secretary of the Treasury is

of the government, it invites its
disorder and confusion. ^,, .

or unworkable,
prevented infla-

own

not

possible
obstacle
dynamic growth of the

This includes

meet

this

Executive,

th^DeoSe6

Attorney General vvill advise and

and

au

to

;

the

wage and prjce controls on April
30> 1953> when present legislation

op-

these

serve

expires.

remove

objectives and also

existing

In

the

meantime,

and to review speedily any derogatory information concerning inr
cumbent personnel.

steps

To carry out these programs, I
believe that the powers of the Executive Branch under existing law

needed for this purpose.

It is ob-

are

viously

inequities,

that

prove

to

be

expected

the

Clarification and simplification in

removal of these controls will

the tax laws

suit in individual price changes—

well

as

the regula-

as

tions will be undertaken.
In the whole

icy—which
aspects
ations

certam

can

basic

First:

It

sensitive

and

mechanism

flGc'nskie™

items essential for

and

dtTionofa"'/ kind

serously

programs

should

necessary

They will

justice>

apply

ht but

endedAn
clear

f..

be

both

safety of the

with

care

and

the basic

principle
public employment is not a

that

ri

will

rights of the individual

effective for the

naW

defense. I

our

they

the

;

privilege>.

a

these

measures

haye

tw0

Purposes. Their first purpose

the

problem

of

This calls for

,

a strong
in the field of

program

to assist in

vaneys

con-

:■

credit mechanisms, and marketing,
'rural electrification soil conserve-%

Federal

tion, and other

resource

levelling off peaks and

jn

economic

our

tf^^rity forS remaiSng

tural

life,

^

controls

d^ands defictts tax^c' amt^the
Serai ^economic ; heaUh?of -thl

this

type

as

wi!"

future.

Commission,

as

I

of the Congress.

should be carried out Partisan
wil1 be bla""ed fOT tbe
has

.

A nonrespected au-

of

g™«P

field of agriculture

already been appointed

The best natural resources pro- Interim Advisory
|ram for America will not result
The immediate

as an

Group.

changes needed

trom exclusive dependence on in agricultural programs are
Federal bureaucracy. It will in- largely budgetary and administravolve a partnership of the states tive in nature. New policies and
and

local

communities,

private new

citizens and the Federal

must

programs

await

the

completion of the far-reaching
ment» all working together. This studies which have already been
combined effort will advance the launched.
development of the great river
IX
valleys of our nation and the
Labor Relations Policy
Power that they can generate.
Thp ^termination nf lahnr nnl
Likewise, such a partnership can
*
® 1* ™nJ)Z iaD'°rP01"
be effective in the expansion Varies of political
exoedfencv
throughout the nation of upstream buf
*the firmest^prindoles and
storage; the sound use of public convictions Slanted
govern-

partisan

of our forests
-...

cessitating

aDDarpntiv

i,jotifipd

ap-

C°eaL toAfricanTor^ers snok^
aPs if they w^e a grlup apart?ne-

lands; the wise conservation of
minerals; and the sustained yield

special language and

a

];r®atment>- are an aflront to the

nf

cafcUizmis"1' ^ " Ameri"
lapping Federal activities in this

The truth in matters of lab"p„licy has become obscured in

entire fie d ot resource-conservasub- tion. This matter is being exhaustively studied and appro-

be

Advisory

know it will by appropriate com-

Sou»dly-Planned projects already mittees

mdKe ceriam max xnis na-

Purpose is to clear'the atmosphere
ot that unreasoned suspicion than

programs
• ;
- / ^
The whole complex of agricul-

.

shall recommend to the Congress

Hie-subtle

upset

£nd

free

in nS

our

Hastv

These

.

product controls stoulc. be

If

inadequate,

fair to the

believe also that material and

I

stated

that

truly

a

people.

principles,

axiomatic

of

sufficient.

legislation will be requested.

up, some

characteristic

is

coming

be

now

(acts

is

pol-

various

in

re-

down. But a maximum of freedom in market prices
as well as m collective bargaining

m recommend-

Congress

weeks-there

could

in, its

must,

the

of fiscal

area

be treated
to

some

to

Lem initiated

and

these 'proaskefCo°rrdingly' 1 d°of theint6nd l° the employment ^ °"Ce ^ g0Vem
"0t present gT3mS' deSigned of new personnel
renewal

country.

particularly real

nation

servation.

our

portunity for the growth of small win be taken to eliminate controls
businesses. Many readjustments in in
an orderly
manner, and to terexisting taxes will be necessary minate special agencies no
longer

i

the

of

a

least

to

to

determined

am

responsibility

Lest "eetIhe ch^netor irowina
de the denitments
oif
economy.
^
® lies in the sLping of

un-

needs

to

I

»

convinced max now—as wen as iinsxrucxea xo uuxicue at once ei1" .theJong run free and compet- fective progiams of security with

;

review.

have

tion; they have not kept down the

ex-t

Meanwhile, the tax structure

a

They

<

33

necessary after the expiration of accepts rumor and gossip as
controversies. The very meaning
the existing.statute on June 30, stitutes for evidence.
of economic freedom as it affects
fj . - Our goals can. be of. the 1953. r
U
;-:-v
■
.
.
Our people, of course, deserve -pnate reorganization plans will be labor has become confused. This
Nation.
clear,
I
recommend
the
continuance and demand of their Federal gov- developed.
*
misunderstanding has provided a
our, start toward them can be im¬
mediate—but action must be grad¬ beyond June 30 of the authority ernment more than security of
Most of these particular re- climate of opinion .favoring the
for federal control over rents in personnel. They demand,
ual.*'*,
;".ru
also, ef- source problems pertain to the De- growth of governmental patemalthose communities in which se- ficient
and
logical organization, partmentof the Interior. Another ism in labor relations. This tendSecond: It is cleai^ that too great
rious housing shortages exist, true to constitutional
principles.
°I its major concerns is our coun- ency, if left uncorrected, could
a part of the
x

national deM;ccfrnes

gram of

extending partof the debt

oi monger xerm.

Third:

invars,

FpH^rnl^'R pVi rRnarrf
r R e s e r v
Board

its

hauA
have

e

as

SOon

functt°£would be

It

whole

and

nation

the

]the

We

free

Pr ce

and

,

and by

the

dividuals called into

faw<

our

*

*

by

many

than the matter of priee^

COtyn5

-my

gnd
v!

\yage
iu

watch

*

.

•

its

control

whole

this

emergency

has

role

a

system

'

to

abiding

system,

kind

play

howeverTis

the

mally,

as

well
can

of

.11

i

as

a.

price structure

our

on

sound fiscal

—

business

ihonefary

best

can

*

-

The

safety of America and the

trust of

the

people alike demand
Federal

that the personnel of the

government be loyal in their motives and reliable in the discharge

re-

wage problems across ol their duties.
Only a combinabargaining table. Government tion of both loyalty and reliability

refrairT from'sittinginwith promises genuine security,.
unless, in extreme cases, the " To state this principle is easy: to

public welfare requires protection,

apply it

We are, ,of course>v livingAn> an

By

fu1lthmobilizXngenor
can

quently,,

-

know

will

►

can

be difficult.

But this

security we must and shall have,

international situation that is

condition

way

of example, all principal

what

'

-

how

Dersist

gated at their own request by the
Federal Bureau of Investigation,

lonc dhis

-2 Conse-

are

.

things

does yiot.

as we go

of

We

the

of

production

agement

had

now

UIC
the

five

1947, commonly
known 'as the Taft-Hartley Act
That experience has shown the

to amend that Act.

costs-of-production

the mandatory

prices

of

are

legislation

the
present
act
faithfully
thereby seek to mitigate the

of the

for

and

corrective

some

should promptly

we

action,

proceed
1

,

I know that the Congress is al-

Federal

port

years?

Labor rem¬
Man-

of

Act

need

farm

and

economic

nation.

our

have

total

and

provides for

sup-

basic

ready

proceeding

studies

with

this

of

renewed

whole

subject,
Meanwhile, the Department of La-

farm

commodities at 90% of

parity. The bor is at once beginning work to
efficiency is the Post Office. One Secretary of Agriculture and his devise further specific recommenoi the oldest institutions of our associates will, of course, execute dations for your consideration. "
should

government, its service
be of the best. Its em-

ployees should merit and receive
the high regard and esteem of the
some areas

are,
of the postal

sequences

P

no ncn

1

mill

and

In the careful working out of
legislation, I know you will give
thoughtful consideration—as will

con-

of the downturn in farm

income.

in

we

This

the

Executive

Branch-to

price-support
legislation
will expire at the end of 1954.
We "should begin now to con-

the views of labor, and of management, and of the general publie. In this process, it is only hu-

sider

man

what

farm

that each of us should bring
forward the arguments of selfyond. Our aim should be economic interest. But if all conduct their
legislation

should develop for

taking advantage of its accumulated .experience in postal affairs, stability
UWctmoctflH

'♦Jin

n

-.

-

1955

we

and

be-

arguments
licflif

and full parity of income

a.

•

r

—

.

ference

ing deficits.
- .
In all Departments, dedication
to these basic precepts of security
and
efficiency, integrity
and

that

economy can and will produce an

r>

i

nf

.

.

*

.

..

i

v

?

controlsvin

-their^-present quire policing by another Branch




o—

—

in

the

notinriul

*

,

conditions.

.

Administration deserving of the
trust the people have placed in it.
•
Our
people
have
demanded
nothing less than good, efficient
government.

They

shall

get

nothing less.
VII

in

the

overpowering

intoroof

tirViion

farmers

and

.

;+

our country will follow with

that
studv

t

Amone

reveals
than

oK/viirjtKo nimnritu

;

Theodore Roosevelt awakened the

States and

and

of

trade

un¬

bargaining

have

a

century of hon-

them,

in them is proven, firm

final.
can

do

a

great deal
„

to aid the settlement of labor dis-

putes

without

allowing itself to
.be employed as an ally of either
side. Its proper role in industrial
strife is to encourage the processes
n d - conciliation.

the
United of mediation a
foreign countries. These processes

investigation, conducted
It

ey

Government
_

,

It involves research and scientific
tensive scale.

remember

we

collective

achievement behind

Our faith

between
many

,

0rable

power

of American consumers. It depends also upon the opportunity
to ship abroad large surpluses ol
particular commodities, arid therefore upon sound economic rela-

must

institutions

and

mo"uments, !° the freedom
PJ"evail in o^r industrial

it shows that the prosperity of our
agriculture depends directly upon

tionships

the

ionism

other things

Resources try-upon the purchasing

Vitally important are the water
and minerals, public lands and
-standing timber^ forage and wild
life of this country.'A fast-growin£
population will have vast
future needs in these resources,
We must more than match the

ine welfare of all or

involved.

is

us

emohaHrartlv

bi

.work,

initia-

use

Especially

n

...

understanding your progress m

changing economic

continuing

,

in

shifts

that

themselves to

five in meeting

,,

Ioun<Ily hope that every citizen

affairs,

encourage

desirable

permit

production,

farmers'

the prosperity in the whole uuunuiusuemy
of uie wnuic coun-

keeping out the -disloyal -and .th^*
discussions- on dangerous rests squarely upon the
these and related facts, the weight Executive Branch. When this substantial achievements in the
of evidence is clearly against!the Branch so conducts itself as to rehalf-century since President
.

TJnVatf odr-euireiit

use

to

experience with

—

One agency, for example, whose
Lead has promised' early and
vigorous action to provide greater

dn".^lepTt
agendl^have" beeTinveTti- Preservation »f Natural

forced -t<y learn
Confident of your understandalong— ing and cooperation, I know that
clinging to what works, discarding the
primary
responsibility for
we

mafty new

problems

Administra-

new

labor and
—- —help reduce the

and

wages

add

strength of

difficult

the

both

of
can

been going on for
almost two years, has occurred at
a time when most non-farm
prices

time reducing costs and decreas-

should

'

the

ing and removing outmoded func- extraordinarily high.
tions and eliminating duplication.
Present agricultural

«

solve their

one

trative machinery. The Congress
rightfully expects the Executive
to take the initiative in discover-

integrity.

the effective

and

Moreover, American labor .and
American

No

of

face

smoothing the gears of admmis- cline, which has

be

today, in

_

One

of

thug

support

which

,

liv-

own

through strikes and stoppages,

Anere 4s .more myoiyea nere tion is that of the slow, irregular
than realigning the wheels and decline of farm prices. This de-

of strength.

a.

loss

.4' '

Period°f 18 m0^hs ®r,tw®
lts exPiratl0n date of

VI

.

and * upon
the
natural
workings of economic.law.

.

VIII

:

Our vast world responsibility
accents with urgency our people's

Our
based

and
"" 1 support
"
management

scheduled for 1954.

Are«^nt

service, both waste and incomYI
petence to be corrected. With the
°n L°ya,ty of federal Personnel cooperation of the Congress, and

policy,

them

an-

his

earns

that status, ing.
^
v
be
granted
In the field of labor legislation,
first election only a law that merits the respect

should;: combat

we

by relying largely

the

Hawaii. The people of that Terri- American who

assumption*,'.that

fluctuations in
use of

sources

-

..

upon

Committee

vidual initiative precisely because
know them
^ ou^ Nation's citizens of the nation. There

'inflation^bht^onlv
svmntoms -In tiSes of

national

the

we

of

causes

which

Ap^ii 1, 1953.

If the freer functioning of

mindful that the time for sacrifice

t

f

with

year.®

trends

facing all these problems—
prices,
production,
tax
rates>' fiscal policy, deficits—
everywhere we remain constantly

PnlnS^n

nirppt

Commission

cnnerew to extend the

for a

competitive enterprise and indi-

nH

Hoover

Agriculture and r arm Priee
Farm Price
Agriculture

wages

Sworwf*

real

th

jn

jn-

counsels,

*

to

J-he great economic strength of has not ended. But we are con^cerned with the encouragement of

•^nv l

the

of

alyses show to be possible, I ask

with-

appropriately employed, prove insufficient during this period of
strain and tension, I shall promptly
ask the Congress to enact such
legislation as may be required.

.

thoughtful,^consideration

Federal

the indirect controls which

.encouraging this initiative,
nosingle item in our/ current
problems h a a received, .more
associates,

omy

idle to pretend that

have

economic

our

Wage Controls

In

shall

closely.

.

VkJ
On

for

,

drawal from direct controls.

economy

play of
our people's genius for,. individual
initiative,
w
: ;j
:
i *
encourage

responsibility

selves" bfrnlre

by. policies de-

to;stabilize

ports

Kul^ehtTt^

problems in this whole

single purpose, shall be,to.serve
the

practicable. But

as

state,

own

Kcl'rth "l °exoecf
signed

^

chiefly the so-called de-

tory 'have earned
each leglslat"re s,hould have.iu.11 independent agencies. To achieve Statehood
should
opportunity to take over, within the greater efficiency and econ- promptly with the

Past; differences .in policy

Federal

are

are removed entirely,

lo^er-tlr^m/e£s

hands of

^

rents

pTaci^H^^at^r ° arrmunts^^^the
•

o

jbese

on an ex-

involves special

can

successfully

be directed only by a government
rnntir.nvrl
.

•

.

nnno

74

34

The Commercial and,Financial Chronicle

(610)

Continued from page

provisions. • These - must
promptly corrected.
am
well aware that beyond

unclear
be
I

Eisenhower Delivers His First
suspi¬
partial or punitive.
The Administration intends to
from the taint of any

cion that it is

and

strengthen

improve

to

the

services which the Department
Labor

The

and

the

to

to

munity. This Department was cre¬
ated—just 40 years ago—to serve
the entire nation. It must aid, for
example, employers and employ¬
ees
alike in improving training
programs that will develop skilled
and competent workers.
It must

significant role in the plan¬
of America's economic fu¬

a

To that end, I am authoriz¬

ture.

the Department of Labor to
tripartite Ad¬
visory
Committee consisting of
representatives of employers, la¬
bor and the public. <
ing

establish promptly a

to
of

daughters of immigrants.

and

Existing legislation contains in¬
justices. It does, in fact, discrim¬
I am informed by members

inate.

central part of

real¬

Congress that it was

the

of

ized, at the time of its enactment,
that future study of the basis of
determining quotas would be nec¬

the same time guard

to

related

but

another

In

area—

most

clearly the new application of old
freedom.

is

Administration

found!^

pro¬

of two great needs
born of our living in a complex
industrial economy. First: the in¬

were "going crazy" trying to fill negotiations was an amendment
the rush of orders for the "penny" to the extradition treaty between

Behind the rush was publie interest in the Bathhurst Lase
metals find and uranium activity
in northern Saskatchewan. New
Larder U was spurred by news of
issues.

aware

millions

These

fallen.

remain

that

gests

considerable

the

have not ended,

distribu-

are

one's

to

is—in

freedom

own

honor

sence—to

and

of all others.

freedom

cherish is the equality of rights

we

citizens of

all

We have

light of this responsibil¬

and

ity, certain general purposes
concrete

certain

now.
programs,

our

against minorities persists despite
our

both public and private, offering
Such safeguards against, the* privations

allegiance to this ideal.

discrimination—confined to
nation—is

of the

section

outward

no one

but the

testimony to the persist¬

of distrust and of fear in the

ence

hearts of
This

men.

the

all

makes

fact

more

vital the fighting of these wrongs

by each individual, in every sta¬
tion of life, in his every deed.
Much of the answer lies in the

fact, fully publicized; of
persuasion, honestly pressed; and
of
conscience, justly aroused.
power of

These

of

way

methods familiar to our

are

tested

life,

and

proven

wise.
I

District

of

Columbia, includ¬

ing the Federal Government, and
any
segregation in the
armed
forces.
Here

in

the District of

Colum¬

bia, serious attention should be
given to the proposal to develop
and authorize, through legislation,
a
system to provide an effective
voice

in

While

consideration

local

self-government.
of

this

pro¬

renewed effort to check the infla¬

value

the

payments.
school

each

ing

Commissioners to broaden
sentation

of

all

elements

repre¬

of

our

system

demands

prompt, effective help.

some

the

of

than

more

last

Dur¬

two years,
children

million

IV2

swelled the

have

elementary and

school population of
Generally, the school
population is proportionately
higher in states with low per cap¬

rG

the whole span
from

a

aged,

from

whole situation

This
careful

for

Congressional

I am sure that
conviction that the

study ana action.

share

you

my

conditions

firm

must

be
of

Federal

of

aid

proved need and proved
local income.

tricts

population
has

been

of

many

greatly

dis¬

increased

in

We must be strong

be

must

all

in the

strong

our

fected.

In this manner, and

by the lead¬

ership of the office of the Presi¬
dent

exercised

through

friendly

conferences with those in author¬

ity

in

our

expect

to

states
make

and
true

cities, we
and rapid

progress in civil

rights and equal¬
ity of employment opportunity.
There

is

one

sphere in

sphere of immigration.
is

a

manifest

right

the

communities af¬

aiding

schools in

of

these

con¬

dis¬

This
law should be renewed; and, like¬
expires

June

on

30.

the

in

spiritual

resources

which all else depends.

the

values

all

with

devoted

be

our

government to limit the number
ef immigrants our nation can ab¬
It is also a manifest right of
our government to set reasonable

heart to

We

these

of

each

applies

upon

We must

our

defend.

we

that

virtues

in

must

values

with

relations with

our

door.

next

freedom

equal

We

in

similarly

de¬

prompt specific action

protection of the general con¬
The Food and Drug Ad¬
continue




necessary

its

established

program

and

however,

price level

the

'

Patrick
h

Jan.

know

30,

in

by base metals, off .61, while

western oils

firmest with

were

advance of .55. Golds eased,
trials advanced.
Tv,

cp].

our

strength,

heart
neart

summons

Angeles Stock Exchange. Mr.
Sheedy was formerly with Con-

Co"L™aJ. ^n^^n^nHo'r tl^re-

•

t

x

& Co.

Toronto Bond Traders
To Hold Annual Dinner

In

it-

is—in

There

world

tween

of helplessness that
There is—in
-a

affairs—a

'

will

and the

demands

can

J.

x..

.

.,

we

live and

nn^

strength,
h6art' CleaE

our

°Ur

.

they
.

spirit must

hnr.- ranfirianF
labor:-confident rxf
of

t

transactions

ties

on

.

B. Cole

Opens
Calif.—J. By-

ANGELES,

Cole is engaging
business

in the securi1228

from offices at

South Flower Street.

the "penny

Join Rex Merrick

new
(Special to The Financial Chronicle)

Lemon

'

sued registered significant,
for the welfare ments..

must think before

in

r0n

St.??LKchaancgee

annual dinner

20th

(Special to The Financial Chronicle)

rare.

feverish

a,

its

day, March 6th.

tern, although a few selected is-

is cowardly.

expect to win

In this

vein,

The

—

King Edward Hotel on Fri¬

high records, but the general price
trends in the industrial list followed a narrow and mixed patmove-

SAN MATEO,

Calif.

and

Jr

—

Warren

Willis F.
A.

*

°h

*

Mc-

to the

Clure, Jr. have been added to the

.staff of Rex Merrick, 22 Second-■
*
* ■' *. \ • '
Avenue.
Whether the outburst of speculation rthe Canadian securities Two With Waddell &. Reed
,

.

exchanges is merely

^

men

were

section here also established

confession

middle way between untramfreedom of the individual

melled

hold

at the

LOS
dollar

a

Turnover of shares

affairs at home

our

similar

a

on

to be followed be
assertion of strength
a

as

°rJh^°nireaL
also
took

course
an

much

Canada

TORONTO,

Toronto Bond Traders Association

£rouP> one or

,

our

wisdom must direct

our

as

the Trading

of

Manager

an

indus-

^

.

dontocfc^
of

Street, members of the

Seventh
Los

•

Eirope0f ^ Pe°PleS °f EaSt"

As

r.

Department for Edgerton, Wykoff

exchange indexes were still
pretty much unmoved by all the
churning around in low-priced issues, and at the final bell showed
an
average move of about half a
point,' evenly
divided
between
gains and losses.
Biggest move

that

.

Chronicle)

ANGELES, Calif.—Patrick
has -become associated
Fairman & Co.,
210 West

with
•

The

was

.'f

-

LOS

small

relatively

only

H.' Sheedy '.aH*.
C.

^

\ (Special tp The Financial

H, Sheedy

week-end

Friday,

on

,

itself
with
the right of

expresses

eloquence

ministration should be authorized
to

ment, '

'

"as

as

Despite prevalent bullish senti¬

equal

_/•

i.i

„

4.

reflection

a

J •

/-.

•

,

(Special to The Financial Chronicle)

v.

..

the current. Canadian boom or
^ ..
Caroline L
a manifestation of a species of
*,
'k
.mob. psychology is'a debatable Beesoit of Colorado Springs and
e

_

;
■

-

.

££*Max D: Morton ^ Puebio have J.^extended to tile united States, in •become affiliated with Waddell "xr
&
'

any

at

noticeable-'degree,

although,

has'been

intervals there

con-

Reed, Inc. of Kansas City.

.

;

siderable speculation in Canadian

.

In this spirit, let us together
of factory in¬
turn to the great tasks before us.
spections.
The
invalidation
of
DWIGHT D. EISENHOWER
these inspections by the Supreme
requirements on the character and Court of Dec. 8, 1952, was based The White House,
the numbers of the people who
solely on the fact that the present Feb. 2, 1953.
'
'

sorb.

Some
"bullish-

factory—andSin the'yearning^and

free

interest

one

the

fst GrdfrPfnnwe1fe in the, neighbor"
boo<*
Shares or less

neighbor

our

must

°

Public

that

tdtrsV"

force at the ends of the earth and

sumer.

of

brokers;noted

the

rent fiscal year.

mands

price^ mining stocks.'

showed

partial payments for of the whole Nation. This way
current
operating expenses for must avoid government by buthese
particular school districts reaucracy as carefully as- it avoids'
should be made, including the de¬ negelect of the helpless.
ficiency requirement of the cur¬
:In every area of political action,
wise,

which

civil rights are inevitably involved
m Federal legislation.
This is the

It

struction

tricts

of

Legislation

heigh't

During the
of the mar,
kefs activity,
total transactions
excee(jing a million shares were
regjstered in some of the low-

change.

resources

of

the markets> activity.

must

builders—all

and

ample

communities

t0 be when will it end.

Stop-loss orders and profit-taking
sales are suggested as factors in

produce, produce more, and produce yet more.
We must be strong, above all,

nicians

that is truculent and

all

of
produc¬

tivity. We all—workers and farm
ers, "foremen and financiers, tech-

added little

to

We

arms.

source

armament—our

our

steady

nation.

seems

now

range

are

strengtoo'ur' neart, ana our wis issue, whereas, formerly, thesingIe
strengtn, our heartland ouTwTs- 10<000 to 15'000 shares of a
larg-

by the swift growth of defense ac¬
tivities.
These activities
have

nothing to the tax

points,

freedom itself de-

population. This will be a first
step toward insuring that this
Capital provide an .honored ex¬

or

narrow

.

phase

school

very

three

v

The hope of

era

of the school prob¬
demands special action.
The

One

government-to liver
the
of our great

development

and

income.

of

enforcement

an

m

economy

know

ita

of these mattersforeign policy of world
to the daily needs of the

purpose

secondary

calls

*

individual freedom applies across

the country.

lem

District

of

destroys so much of
of all social security

which

tion

two

number

unem¬

vately sponsored pension plans.
Most important of all, of course, is

lack

the

with

come

Security System. No less impor¬
tant is the encouragement of pri¬

ceeds, I recommend, in the mean¬
time, an immediate increase of
in

often

too

ployment, old age, illness, and ac¬
cident. The provisions of the Old
Age and Survivors Insurance Law
should promptly be extended to
cover
millions
of
citizens
who
have been left out of the Social

Our

to use whatever au¬
thority exists in the office of the
President to end segregation
in
propose

the

that

a por-

Ju^r<LUS'*,3

•

need for greater

in

effectiveness

people and

our

u

w

Patrick Sheedy Joins
Fairman Go. Staff

of less
attracting
little attention, the only question
a

than

surveyed briefly some

problems of

are

measures

There is urgent

discrimination

that

know

We

Summary

social services.

able

and plainly indicated

every race

color and creed.

in

government of certain indispens¬
In the

heritage

A cardinal ideal in this

of

es¬

the

respect

two,

was

close to
all our hearts.
Proper tion of these issues is under way
the heritage we
striving to defend on all fronts dividual citizen must have safe¬ care of our uniformed citizens and and saturation of the available
and with all our strength.
appreciation of the past service of demand may not be too far away,
guards against personal disaster
I believe with all my heart that
our
veterans are part of our acWhen the action is viewed
inflicted
by forces
beyond
his
our
vigilant guarding of
these control.
cepted governmental responsibili- against the background of more
Second: the welfare of
senior issues which, as indicated
rights is a sacred obligation bind¬ the people demands effective and ties.
XI
by all the Toronto indices, moving
ing upon every citizen. To be true economical performance by the
a

.

nations.
Thereafter, it
hoped that easier working
arrangements for the distribution
of Canadian securities in the U. S.,
through agreement with the Sea financing agreement with Fro- curities and Exchange Commisthese is our great and
growing bisher.
sion, were in the offing. However,
body of veterans.
America has
The very large volume required no agreement on a formula which
traditionally
been
generous
in to produce only minor advances has proven acceptable to Canadian
caring for the disabled—and the in many of the low priced issues, securities dealers has yet been acwidow
and
the
orphan
of the a weekly tabulation reveals, sug- complished, but the negotiations
health, education, and
social security.
I
repeat that there are many
important subjects
of which I
make no mention today.
Among
in

tivities

our

our

that of social rights—we see

.

Traders on the floor of the To- desiring to do business in the
ronto Stock Exchange said they United States. The result of the

recommenda-

specific

you

mission, together with a reorganidefining new administrative status for all Federal ac-

basic ideas of
freedom and fairness to all.
faithful

be

.

relationships;

zation plan

and

interests

national

legitimate

*

A new wave of activity in so distribution of Canadian shares in

proper

local

send

therefore requesting the

and

one

intelligently
Involved, too,

call for

tions for establishing such a com-

Congress to review this legislation
and to enact a statute that will at

This

rights form

Our civil and social

us,

By WILLIAM J. McKAY

housing needs of

and

intricate

the

are

and

and all—immigrants or sons

—one

ideas of

Civil Rights

On

however,
occasionally

for

ourselves

be done.

matters of called "penny shares" has hit the the U. S. securities markets. In
Federal, State, Toronto Stock Exchange. For al- the address of John W. Rogers,
assuring most a week trading records were Chairman of the Board of Govthe solvency of the whole security consecutively
broken as total ernors of the Broker-Dealers' Assystem; and guarding against its dealings on the exchange rose sociation of Ontario, which orexploitation by the irresponsible, from around 7,000,000 shares to ganization held its Fifth Annual
To bring clear purpose and or- reach a climax on Jan. 28 of over Meeting in Toronto
on Jan. 24,
derly procedure* into this whole 12 million shares, the highest on mention was made of the negofield, I anticipate a thorough study record. But the vastly increased tiations between officials of the
by an appropriate commission of activity was characterized largely Canadian and United States Govthe
proper
relationship
among by a churning of the "penny is- ernments, having in view the easFederal, State, and local programs sues," and resulted in no sharp ing of the difficulties that have
in this whole field. I shall shortly price advances.
faced Canadian securities dealers

our

achieving

well

is

It

remind

people

planned programs.

freedom.

enjoy the confidence and respect essary.
of labor and industry in order to ;
i am

play
ning

and

land

our

health

our

Canadian Securities

measures

to

much

remains

there

of ah equally manifest fact: we are

the worker
whole national com¬

render

can

share

to

come

immediate

few

these

State of the Union Message
free

and

inconsistent

contained

law

33

Thursday, February 5, 1953

.

.

.

■

stocks;

on

change
The

the American Stock Ex-

1:

in New York.
Securities

and

Exchange
Commission has been for some
time studying the question of the
.

•

?

;

Charles B; Coady
B.: Coady,

Charles
,

:

„

^

,

.

v

partner

of

_ _

^8-0^1101^ ^ Coady, New; York-j
City, passed away on January

27.

Number 5192

Volume 177

.

The Commercial and Financial Chronicle

..

(611)

The following statistical tabulations cover production and other figures for the

Indications of

latest week

Business Activity
Indicated steel operation*. *percent un

Previous

Week

Week

,

capacity)

Feb.

.

month available.

week.or month ended
Latest

AMERICAN IRON ANDSTEEL INSTITUTE:

or

§95.6

8

Month

Ago

that date,

on

.

•>99.4

98.2

3teei ingots and castings

AMERICAN

(net tons)_.

U.

:

Feb.

—

8

§2,154,000

oil and condensate

42

each)

Crude runs to stills—daily average
Gasoline output (bbls.)

Jan. 24

—

(bbls.)
—

Kerosene output (bbls.)
Distillate fuel oil output, (bbls.)_.
Residual fuel oil output (bbls.)

—

.

Jan.
Jan.
Jan.
Jan.

24

6,491,750
§7,031,000

7,081,000

Residual fuel

at

24

23,154,000

24,037.000

24,023,000

oil

(bbls.)

2,759,000

2,791,000

Revenue

11,024,000

of cars)-,

8,653,000

CONSTRUCTION

145,879,000

143,492,000

134,425,000

143,621.000

27,790,000
103,685,000

23,490,000

Benzol

85,179,000

24,932,000
♦88,773,000

71,922,000

Crude

46,918,000

47,745,000

48,662,000

39,957,009

Refined

697,641

705,479

520,671

(no. of cars)-.Jan. 24

664,328

648,987

587,334

OUTPUT

664,237

$229,078,000

$185,038,000

$212,468,000

122,994,000

83,083,000

106,084,000

101,955,000

106,358,000
106,110,000

Jan. 29

146,489,000
102,503,000

77,809,000

Private

43,980,C00

23,275,000

80,572,000
21,383,000

58,672;000

.Jan. 22

47,438,000

Public

♦9,560,000

6,520,000

11.220,000

—Jan. 24

9,180,000
550,000

703,000

489,000

117,800

♦112,200

93,600

147,900

January

-Jan. 24

-

—

1

Jan.24

86

92

146

8,150,534

8,144,074

7,713,155

7,572,432

Jan. 29

162

173

89

164

Jan.27

4.376c

4.376c

4.376c

4.131c

—Jan. 27

$55.26

$55.26

$55.26

$52.72

_Jan. 27

$42.00

$42.00

$42.00

$42.00

INDUSTRIAL)- -DUN
-

(per gross ton)—.

PRICES

(E.

i

—

332,731

130,283

154,928

40,850,000

44,000,000

3,354,000

3,713,000

♦356,100

623,300

$23,975

$22,803

$20,644

16,506

15,889
8,917

13,510
7*546

3,879

4,039
3,507

7*118

and

6,972

5,964

7,469

]

—

.

6,914
4,242
1,516

4,587
1,436

1,156

1,111

Z—Z-

.

municipal
J,

coal

and

(net

_

MINES)—M^onth

lignite

anthracite

coke

(net

(net tons)
tons)

tons)

GOVERNORS

SERVE
:

OF

SYSTEM

Total

consumer

Instalment

THE

FEDERAL

Estimated

—

Credit in millions

24.200c

34.925c

34.950c

34.350c

Dec.

of

as

credit

RE¬

short-term

31:

———

credit

-

credit

121.500c

121.500c

121.500c

121.500c

14.250c

12.500c

12.500c

19.500c

95.72

96.12

108.70

109.42

Noninstalment credit

18.800c

Jan. 28

14.000c

14.000c

(St. Louis)} at—

Jan. 28

13.800c

13.800c

(East St, Louis) at—

Jan. 28

12.000c

3

95.79

3

108.52

-

Loan credit

19.000c

14.050c

(New York)

Lead

at—

Other

27.425c

Jan.28

:

at

24.200c

24.200c

Jan. 28

—

—

York)

24.200c

Lead

Zinc

246,463

of

Automobile
Jan. 28

Export: refinery, at
(New

487,659

480,062
228,930

9,388
5,190
4,198

construction

Sale

Electrolytic copperDomestic refinery at
Straits tin

$1,210,798
723,139

376,746

3,130,000
420,400

Month

—

CONSUMER CREDIT OUTSTANDING—BOARD

M. J. QUOTATIONS):

&

$906,976
530,230

708,992

EN¬

&

(per lb.)

Scrap steel (per gross ton)

5,335,000

13,054,000

omitted):

construction

Beehive

OF

METAL

—

construction

Bituminous

IRON AGE COMPOSITE PRICES:

Pig iron

S.

Pennsylvania

INC

BRADSTREET,

17,408,000

42,395,000

IIIIII

NEWS-RECORD

(000's

U.

COAL OUTPUT (BUREAU OF
of December:

83

-Jan. 31

100

Electric output (in 000 kwh.}_

Finished steel

3,123,000

18,123,000
44,000

export

CONSTRUCTION

Federal

EDISON ELECTRIC INSTITUTE:

AND

234,274,000

197,610,000

897,000

—Jan. 24

(COMMERCIAL

10,778,000

223,435,000

1,177,528

(barrels)
and

8,608,000

$1,886,520

—

domestic

19,948,000

250,706,000

—

(barrels)—Z

stock

GINEERING
Total

State

(tons);
(tons)

DEPARTMENT STORE SALES INDEX—FEDERAL RESERVE

FAILURES

all

215,777,000

213,776,000
195,528,000
18,211,000
37}00Q
18,459,000

202,044,000
19,562,000
43,000

;

ENGINEERING

453,422.000

S. BUREAU OF MINES):

==

119,200

12,232,000

(barrels)—
(barrels)

imports

consumption

Increase

$599,911,000

-

AVERAGE

221,649,080

output

(barrels)-.

products

Jan. 29

and lignite

SYSTEM—1947-49

oil

oil imports

Jan. 29

Pennsylvania anthracite
Beehive coke (tons)

149,600

(barrels of"42 gal¬

-

crude

gasoline output
output (barrels)

——Jan. 29

-

.

(U.

3,920,300

145,938

ENGINEERING

—

—_

4,189,100

3,752,525
63,379

181,517

(barrels)

728,015

State and municipal.

Bituminous coal

each)

Natural

CIVIL

Public construction

COAL

lons

Domestic
♦

3,961,842

4,340,427
78,003

October:

Total domestic production

9.222,000

—Jan. 24

Private construction

Federal

of
'

Indicated

construction

S.

Ago;

AMERICAN PETROLEUM INSTITUTE—Month

2,865,000
10i391,Q0Q

RAILROADS:

freight received from connections

ENGINEERING
U:

Year

Month

4.599J947

-

Manufactured gas sales (M therms):
Mixed gas sales-(M. therms)

*

NEWS-RECORD:

Total

-

ASSOCIATION—For month of

gas (M therms)
Natural gas sales (M therms):

6,194,300
6.584,000
21,649,000

3,540,000

10,903,000
9,023,000

Jan. 24

—,

6,594,200

11,121,000
8,771,000

23,890,000

-—

at

OF AMERICAN

.

24
Jan. 24

____Jan. 24

(bbls,) at

6,524,000

24

.—.Jan. 24

—

——

Revenue freight loaded, (number
CIVIL

GAS

Total

2,079,000

7,077,000

/,
Stocks at refineries, bulk terminals, in transit, in pipe lines—
Finished and unfinished gasoline (bbls.) at-.
Jan. 24
Distillate fuel oil

2,213,000

(bbls, oft

output—daily average
—

(bbls.)

♦2,240,000

INSTITUTE:

Crude

ASSOCIATION

Previous

Month

.

100.1

of that date:

are as

November:

AMERICAN PETROLEUM

Kerosene

of quotations,

cases

either for the

are

Latest

Equivalent, to—

gallons

in

or,

Year

Ago

Dates shown in first column

•

Charge accounts
;
Single payment loans
Service

credit

5,038

4,768
1,552

-

'

1,149

—

7*134

MOODY'S BOND PRICES > DAILY AVERAGES:
U. 8. Government Bonds

—

1

Average corporate—,

—

.

96.69
109.60

3

112.19

112.19

113.31

3

110:70

110.88

111.81

3

107.98

108.16

108.88

107.98

(DEPT.

OF

COMMERCE)

14*714,878

14,529,763

113.12

A

GINNING

Running bales to Jan. 16-

114.27

Aa

COTTON

104.14

103.47

3

106.21

106.21

106.74

105.69

3

108.34

108;52

109.42

109.60

3

111.25

111.25

112.37

113,70

103.80

2

Baa

Railroad Group ——
Public Utilities Group.—

Industrials

—

«

Group-——

—

103.80

-

DEPARTMENT STORE SALES (FEDERAL RE¬
SERVE SYSTEM—1939-49 Average = 100)
Month of December:
»

Adjusted for
Without

seasonal

seasonal

variations

116

adjustment—.

112

109

195

._

133

184

MOODY'S BOND; YIELD DAILY AVERAGES:
8. Government Bonds——

U.

3

—,

2.80

,

3

3.24
3.05

2.99

3.13

3.12

3.07

3:19

3.20

3.05

3

—

——

—————.—————————————————————.

3.25

3

corporate

Average
Aa

2.72

2.78

2.80

Group—
Industrials. Group

3.28

3.50

3.54

INDEX

received

of

Percentage
Unfilled

OIL,

FAINT

—

1949 AVERAGE

a*

109

3.41

3.20

3.19
2.97

3.10

3.10

3.04

405^4

404.5

409.2

N.

Y.

Of

FEDERAL
1947-1949

—

December:

»

Sales*(average monthly), unadjusted-'
Sates (average daily)} unadjusted
Sales (average daily), seasonally adjusted
Stocks, unadjusted —v.
1—_

454.0

Stocks,

202,039

239,772

$342,725

187,558

239,985

244,187

$299,914

201,284

Jan. 24

94

95

$66

85

24

462,564

500,300

$478*354

376,678

seasonally

*174

178

116

175

123

*177

101

98

♦102

128"

*105

111

♦114

'102
111

adjusted™—

REPORTER PRICE INDEX—

-Jan-

——

—

—

EDISON ELECTRIC INSTITUTE:
Kilowatt-hour sales to ultimate consumers-

of

Month

108.18

30

♦108.62

108.50

October

Revenue from

113.41

Number

OF ODDLOT DEALERS AND
SPECIALISTS ON N. Y. STOCK
EXCHANGESECURITIES EXCHANGE COMMISSION:

of

(000's

omitted)

—

29,279,408

29*440,192

27,113*736

$521,103,300

-—.Jan.

of period

end

at

DRUG

AND

3.35

3.25

-Jan. 24

———

——

(tons)

3.38*

3.26

3

*

activity—.

orders

3.38

,

_Jan. 24

(tons)

Production; (tons)

3.52

OF

ASSOCIATION:

NATIONAL PAPERBOARD
Orders

3.52

3

—_—

COMMODITY

MOODY'S

3.27

3

—

;r

.

DISTRICT,

BANK

3.23

3.28

3

———

Utilities

RESERVE

RESERVE

AVERAGE—too—Month

3

Public

ERAL

3.00

3

Railroad Group

DEPARTMENT STORE SALES—SECOND: FED¬

2.94
x

1

$521,494,900

$477,724,100

48,239,396

48*078,037

46,589,587

236,264
225,161

*144,001
*223,662

202,679

120.3

124.2

5.14

5J57

ultimate customers—month of

ultimate

customers at October—

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT

Odd-lot sales by dealers
Number of orders
Number

(customers' purchases;

other sales—

Customers'
Round-lot

Other
Round-lot

1,074,494

840,614

$46,713,904

$37,137,351

1,056,792
$49,687,391

->an-

29,446

32,700

32,759

—:

147

125

203

29,313

—

32,553

32,634

sales

905,070

928,636

shares

,

4,698

4,906

4,283

TOTAL BOUND-LOT

ON THE

SALES

STOCK

MEMBERS

900,164

924,353

Short

$36,592,464

Industrial

285,170

359,783

236,930

235,170

359~783

,339,090

411,750

266,671

NEW YORK

240,290

Total

sales

ACCOUNT

FOR

sale*.

of

motor

9,974,940

8,600,790

10,215,230

8,956,250

Number

sales

on

As

10

172,860

101,100

143,090

202,64,

——jan, 10

1,054,710

665,170

763,640

Jan. 10

1,227,570

766,270

906,730

770,74C
973,380

10

297,230

163,600

314,900

210,590,

10

23,900

5,600

10,500

354,260

173,700

9,800
263,820

229}30G

Jan, 10

378,160

179,300

273,620

239,800

t—

the flbar—
r-—jan

——Janj
——

——

—

sales-

—

386,2*1

39,550

332,193
50,320

10

413.249

222,475

342,149;

411,630.

10

sales;

Other

471,669

240,353

381,690

467,950

1,708,727

1,330,131

1,684,280

.——————Jan. 10

.

——,

—jan'

—

—

Total round-lot transactions for account of members—
Total purchases

.

——-

,

Short1 sales

Jaa; 10/
Jan, 10.
10

sales

————

—

—

Jan. 10

358,587.
,

58,420

255,180

17;880J

124,580'

1,822,219-

1,061,345

2,077,399

1,185,925

358,200

192,440

269,460

1,369*609
1,562,049

i;411,670
1,681,130

„

PRICES,

LABOR— (1947-49

NEW SERIES
—

190)5

—

U.

S,

DEPT.

OF

Farm products

——

foods

—

All commodities other than farm

—Jan. 27
Jant 27-

and;foods„____—- Jan. 27*

109.4
S9.6

103.6:

97.0/
112.7

100.8'

lOOil
*103.9)
*97.9-

112.8

109.6
101.1
103;2

263,325

114,106

86,485

319

845

extended

Cash

on.

Total

of

,




hand

$1,292,937

value

of

of

accounts-

margin

$1,365,659

$1,346,515

——

33,455

S.^-—

344il21

balances—

727,339

—*

120,536,170
204,848

32,333
338,754
705,539
117,362,782
100,550,940
162,981

1,001,774

934,318

754^18

1,486

1,552

1,553

debt, balances-—

net

customers

banks in

and. in

customers'

Market* value

Market

to

omitted);

(000's

31

carrying

customers'

U.

free credit

listed, shares

listed

bonds

Member borrowings on U; S.
Member borrowings op other

100,255,735

—

Govt, issues-—
collateral:——

.

39,640
381,101
»

823,773

109,483,613

95,634^349
95,761

vON-FARM REAL ESTATE FORECLOSURES-

FEDERAL
ANCE
Month

SEAL

SAVINGS

LOAN

INSUR¬

September—

ESTATE

AREAS

AND

AND

CORPORATION—

of

OF

LOAN
of

—

FINANCING
U.

NONFARM

IN

8.— FEDERAL

INSURANCE
November

SAVINGS

CORPORATION

(000's omitted)1:

$627,343

$440,038

115,594

134,920

298,066

342,393

123,766
285,398

L—

103,538
217,193;

117,286
253,10CL

216,985

lending institutions-—;——

231*871

252,30L

212.337

$1,492,390

$1,727,343

$1.30^)73

trust

Mutual,

savings
Individuals
—^
Miscellaneous:

94.0

112.8

(.includes* 654,000 barrels of foreign, crude runs. §BaSed on new annual capacity of; 117,547,470 to
Jam 1,1953 as; against, the. Jan, 1; 1952 basis, of 108,587,670 tons. $Eleven days ended Dec. 31,. 1952.

♦Revised' figure,
of

Jan. 27

Jan. 27

Meats

as

Credit

Bank, and
—.——-

Processed

of

Savings and loan associationsInsurance companies. ——

■

All. commodities.

.

firms,

Total

—Month

Commodity Group/

—

519,536
405,111

225

——

1,413,281

jan. 10

—

December

of

Member

870,500,

1,011,180

1—
—-—i——

Short

WHOLESALE

cars

STOCK EXCHANGE—

NEW YORK

780,320

.'I——-----—-————

purchases———

Total sales

passenger

381.655

418*977

115,814

coaches

7,516,380
7,674,620

--jan. 10

-——

————

Other sales

..

535,016

4.41

MANU¬

:

trucks

10,035,030<

~—-jan]

Total sales —;
,—1:1'
—
——
Other transactions initiated off the floor—

Other

5^3

(AUTOMOBILE

S.

motor

10,360,350

-Jan. 10

'

Total

5.13

5.52

ASSN.)—Month of Deo.:

of

1,052;910

■*

•—*—

„—

purchases

Short

3.38

5.15

of vehicles

of

Number

MEM*

OF

—;—

————

Other transaetlons initiated

Total

2.99

FROM

Number

Jan.

"

Other

3.07

6.03

-

,

TRANSACTIONS

Total sales

Total number

-

purchases

Short

4.18

SALES

355,460

HERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists in stocks in which registered"

4.29

:

FACTORY

IN U.

FACTURERS'

158,240

—

5.07

——

VEHICLE

PLANTS

'325,320

5.56

5.03

462,270

(SHARES):

sales-

5.52

1_

—

i.

(200)

5.18

—

—

—

(10)

Jan,

Other sale*

Total sales
ROUND-LOT

(24)

Average

Jan.:

—

—

(15)

Insurance

201000.

of

—

(25)

futilities

201,000

Banks

Jan.

121.8

OF

YIELD

(125)

Railroad

236,930

AVERAGE

STOCKS—Month

COMMON

200

$35,065,905

MOTOR

sales

202,835

i

—

Employment at middle of
average =100)

(1935-39

WEIGHTED

MOODY'S

799,309

$37,682,687

.

Total Round-lot

—

COMMISSION

COMMERCE

Railway

December

EXCHANGE AND ROUND-LOT STOCK TRANSACTIONS
FORT ACCOUNT OF

of

Index

7.554'

802,245

Jan;

————

Shipments

806,863

$33,945,871

purchases by: dealers—

Number* of

(tonnage)—estimated:
(tonnage)—etimated—

INTERSTATE

'

.—-Jan.
————Jan,
—————-Jan.

——

.

STEEL

closed

28,696

306,943

«*anJfln-

———

——

OF

(AMERI¬
CONSTRUC¬

•

sales

sales

INSTITUTE

Contracts
4

28*899

133

————Jan.
——.—Jan.

——

——.

by dealers—
Number of shares—Total sales
Short

918,371

<Jan-

—

———

other'sales

37,290

$39,017,000

—

—.—:

Dollar value

28,426

«jan*

—

Customers' short sales—.————

"i'

36,946

Jftn*

Odd-lot purchases by dealers (customers' sales)—
Number of orders—Customers' total sales

Number of shares—Total sales

32,199

^an-

——

short sales—

STEEL

STRUCTURAL

TION)—Month of December:

of shares

Customers'

CAN

—
——-—

Customers'

FABRICATED

♦Revised

figure/

companies
banks

$526/128

—

J.——
.

—

—

*

•

87,549

36

The Commercial and Financial Chronicle

(612)

Ctofinued

year.
Consequently, on
the Treasury may not

frorp page 3

The Bank Credit Outlook
Ibuszness optimism
jEar enough to

will be carried

lead to competitive

ftiiading for raw materials, an upcommodity prices, and

balance, ever^ the money market, as we all
have to knpw, was, very tight toward the

raise more sash this year
did last.

than it

are

"on

a

part of the

Federal Reserve,

On the other hand, metals

lubricators

,

year.

likely to increase
The major factors in the bank
their borrowings, but less than
investment outlook for1953 are the
they did in the early months of last amount of funds the Treasury will
year. However, this year we may find it necessary to borrow and
•expect increased borrowings by the Treasury's ability to sell secu¬
sales finance companies, in con¬ rities
to nonbank investors. The
trast with a liquidation of loans
Truman Administration has sub¬
Jn the first half of last year. On
mitted its budget for fiscal 1954,
balance, business loans are likely but the problem, of forecasting, the
are

to decline somewhat more in the

actual results still remains. In the

ings

by

state

and

doubtless

ments

spending

on

several grounds.

com¬

It

was

argued that the 1%% rate did not
provide effective discouragement
to member bank borrowing, evi¬
denced by the fact that member
banks borrowed between $1.5 and

certificate
concluded
the

that

a

failure to

discount rate

nouncement of the

would

hatfe

tinued

before

raise

the

an¬

financing terms

contributed

unsettlement

to

and

con¬

uncer¬

tainty

amoijg the" financial fra¬
ternity, in view of the fact that
the possibility of an increase ia

$2

the

by

aggressive

more

credit

restrictive

policy in the months ahead

of rates in the money depends upon financial and eco¬
market; the rate on new Treasury nomic developments. If, contrary
bills averaged above the discount to my expectations, we should ex¬
rate in 24 out of the last 26 weeks perience a
resurgence of infla¬

half of last year

by

institutional inves¬

structure

in 1952.

The facts that total bank tionary
pressures, characterized by
more in the second
competitive bidding for commodi¬

than in the com¬ ties, by a large accumulation of
parable period of 1951 and that business inventories, and by a
Also, the Treasury there was some danger of business continued rise in bank loans in the?
will doubtless try to tap the insti¬ sentiment becoming too optimistic next few
months, normally a pe¬
tutional market as a part of its are cited as further reasons why riod
of
stability or decline in.
tors has

slackened perceptibly in

recent months.

operation.
Putting
all the Federal Reserve should have
imponderables together, one taken action earlier in raising the

funding
these

comes

out with the conclusion tnat

commercial bank holdings of gov¬

securities

rediscount rate.
One

reason

business
have

loans,

the Federal Reserve

we

might

very

well

environment in which the?

an

authorities

would

give

serious,

consideration to further restrictive?

likely to failed to establish a higher dis¬ action.
show a further growth in 1953; count
rate last year may have
Credit policy is determined on
but the increase may be some¬ been the fact that the seasonal rise the basis of appraisal of several!
ernment

are

what smaller than in 1952.

Outlook

for Bank

These observations

in business loans

came relatively facets of the economy; we must,
Since the author¬ watch financial arid economic de¬
ities began the purchase of gov¬ velopments for clues as to further

late in the year.

Deposits
on

the out¬

ernment

securities about mid-No¬ action in the field of credit policy*
vember, in order to ease the year- The course of bank loans is an
end squeeze in the money mar¬ important factor. For
example, if
obligations
indicate
a
further ket, it may have been felt that an a contra-seasonal movement of
growth in bank deposits in 1953. increase in the discount rate in business loans appears, chances of
However, here also the rise is the closing weeks of last year further restrictive credit policy
likely to be somewhat smaller than would
have
complicated
their action would be increased. A sig¬
in 1952.
problems. In addition, there did nificant rise in commodity prices,,
Demand deposits of individuals not seem to be a pressing need for
speculative inventory accumula¬
and corporations usually decline immediate action since there was
tions, and excessive levels of pri¬
in the early months of the year as lack of evidence of speculative vate investment are
among thea result of the heavy concentration
excess in commodity prices, which
broad economic criteria that are
of tax payments. Deposits are al¬ were generally stable or soft, and
important;
increases
in
thesesmost certain to expand in the sec¬ an absence of the widespread use would
again enhance the chancesond half of the year, reflecting of credit to finance speculative in¬ of further restrictive action.
Fi¬
the seasonal rise in business loans ventory accumulation.
nally, the course of money mar¬
look for bank loans and commer¬

cial bank holdings of government

and

ings

some

of

increase in bank hold¬

new

facilitate

Treasury financing.
early months of calendar 1952, the
calendar year 1953 may still show Also, in the last six weeks of 1952,
Federal
Reserve
purchased
a
deficit about $2'to .$3 billion the
loan outlook is the extent to
larger than last year, The Treas¬ $1.1 billion of Treasury securities

Another* unknown in the busi¬

which corporate treasurers will
desire to fund part of their shortterm
bank
indebtedness. There

latter part

of 1952 has received adverse

securities

to

plant and equipment.
ness

fit to

Re¬

loans increased

and be
only slightly larger than in the market. Several times during 1952
this helps build up the liquid posi¬
current fiscal year. However, since the Federal Reserve added to its
tion of business, even in the face
expenditures were rising in the holdings of governments in order
of

see

high levels, but perhaps not quite
as large as last year; the institu¬
tional investors probably will have
a somewhat larger supply of funds
to invest this year. There are signs
that the liquidation of government

auid other non-cash expenses;

rates

Another set of factors involves
the debt management problems of
the Treasury, the first of which

refunding of the $8.9 billion
issue
maturing next
raise the Feb. 15. The authorities
may have

Federal

govern¬ short-term interest rates had re¬
continue at sulted in an abnormal pattern and

.

record

the

local

will

issues of Treasury
past, there has frequently been securities in the period of Treas¬
decline* in the first half of last
great dissimilarity between the ury deficit financing.
year.
budget estimates and the budget
Time
deposits of commercial
Of course, a number of addi¬ results; this year, the change in
banks showed an increase of about
tional factors will have some bear¬ Administration adds- new compli¬
$2.5 billion in 1952, compared with
ing upon the course of business cations.
a growth of some $1.5 billion in
loans in 1953. The acceleration of
The fiscal outlook for calendar
the preceding year. Savings in a
corporate tax payments under the 1953 and
beyond is clouded by un¬ wide variety of institutions evi¬
Milbs Plan resulted in some addi¬
certainty as to the course of de¬ denced a
phenomenal spurt last
tional borrowing in March and
fense expenditures, and by the as
year, and commercial b?nks shared
»gain in June, both last year and
yet indeterminate prospects for in the trend. The outlook is for
In 1951; but the amount that can
tax reduction. At the end of this
the present high rate of savings to
benshrectly ascribed to this factor fiscal
year, there will be large
continue, but I would be surprised
■femrn'very large. In 1952 it was amounts
(probably $60 billion or if time
deposits increased by ap¬
.somewhat greater than in 1951; more) of funds appropriated but
preciably more this year than they
nna although it may be somewhat
as yet unspent. However, obvious¬
did in 1952.
larger again this year, it will not
ly the new Administration will be
be
substantial
when
measured
able to exercise significant control
Outlook for Credit Policy
against the total volume of out¬ over the rate of
The appraisal of the outlook for
spending of funds
standing loans. However, the sec¬
already appropriated as well as credit policy has again became a
ondary effects of the Mills Plan over the amounts of the new ap¬ matter of concern to bankers.
Tupon corporate working capital
Since March, 1951, the Federal Re¬
propriations.
position are very difficult to trace
The old Administration has pre¬ serve has ben pursuing a credit
through. }
sented a budget contemplating a policy that has been variously de¬
It is my impression that the
scribed as "neutral" or "flexible."
$4 billion rise in the expenditures
liquid position of American busi¬
for fiscal 1954 over those antici¬ During 1951, the Federal Reserve
ness, which was impaired by the
pated in the current fiscal year. was restrained in the exercise of
post-Korean price inflation, has
However, the rate of spending on some of its powers of credit con¬
not been deteriorating of late; in
national defense has been about trol, notably the discount rate, by
Sact it probably improved during
on a
plateau for the past nine the terms of the accord with the
the past year. So long as full em¬
months; and doubtless the pro¬ Treasury. In 1952, the Federal
ployment and the current level of
posed
increase in foreign aid Reserve generally allowed eco¬
profits are maintained, the busi¬
spending will receive careful nomic forces to tighten the money
ness sector of the
economy gen¬
scrutiny by the Congress. Conse¬ market; but upon occasion it did
erates an enormous amount of
quently, expenditures in the fiscal step in to provide additional bank
cadi each year from depreciation
year that begins July 1,1953, may reserves, thus easing the money
first half of 1953 than the 3 to 4%

wf

did not

on

time to take action.

is the

that

rediscount rate in the
ment

undue

avoid

billion fairly regularly during the rate had received increasing;
latter part of 1952.
Also, it attention in the early weeks of"
troublesome at the present time. was pointed out that the main¬ the year.
trend in business loans will con¬
Whether the recent action of the?
tinue but at a reduced rate.
If The flow of new mortgages, cor¬ tenance of the 1%% rediscount
rate
in
the
face of
increasing Federal Reserve will be followed!
business continues good, business porate securities, and bond offer¬

exercise some resstraint upon bank lending.
So long as business activity re¬ loans are likely to show an in¬
mains at or near current peak crease from Jan. 1 to Dec. 31, but
levels, the demand for bank credit the rise is likely to be smaller
will likewise remain high. How- than in 1952, which in turn was
«ever, in the absence of an infla¬ smaller than the increases which
tionary rise in commodity prices, occurred in 1951. In my judgment,
a would expect the increase in it would require an appreciable
business
loans
in
1953 to
be deterioration in business condi¬
smaller than in 1952. Under these tions to cause business loans to be
sconditions, the seasonal decline in lower at the end of 1953 than they
^business loans
during the first were at the end of last year.
tialf of this year may be slightly
Outlook for Bank Investments
larger than in the corresponding
In Governments
period of 1952; and the seasonal
rise in the latter half of the year
In contrast with the steady rise
may be somewhat smaller.
in bank loans over the past decade,
During the postwar years—ex¬ bank holdings of Treasury obliga¬
cept during periods of inflationary tions have evidenced several
pressures as in 1951 — loans to swings. From their postwar peak
business have
customarily evi¬ in 1946, bank holdings declined
denced some decline in the first sharply through 1948, reflecting in
quarter of the year, a somewhat part Treasury policy in retiring
larger decrease in the second bank-held debt and in part action
quarter, and a seasonal rise in the by the banks to make room for a
second half of the year. During growing volume of loans. In 1952,
the next few months, we may an¬ commercial banks
added about
ticipate the repayment of seasonal $iy2 billion to their holdings of
borrowings by commodity dealers governments, in contrast with a
and the food group, broadly de¬ small decrease in the previous
fined.

fact

serve

to

strain in the money' market was
not indicated for the immediate

year; and yields on
Treasury obligations future; consequently, mid-January
highest levels they may have seemed an appropriate

August, 1950.
The

securities

ment

the

plateau that is

able to achieve somewhat better rent calendar year.
However, a
reduction
in
individual income
speculative accumulation of busi¬ flexibility of financial manage¬
ment
by substituting long-term taxes would mean lower collec¬
ness
inventories. Businessmen
debt for bank loans. To the extent tions and higher financing re¬
jhave displayed laudable caution in
that this is a fact, it would tend quirements during the latter half
$he face of the many temptations
to restrain the increase in bank of the year.
during the postwar years, and I
The financing requirements will,
loans this year. Even if the excess
tope and expect this caution will
as was the case last year, be con¬
continue. A speculative splurge at profits tax is allowed to expire at
centrated largely in the second
this point could only serve to com¬ midyear, any resulting reduction
in
corporate borrowings would half of the year. The question of
pound our problems for the future.
the amount of government securi¬
Furthermore, an inflationary boom probably not be felt until 1954.
ties likely to be purchased by
gloubtless would be followed by a
Thus, I foresee a situation in
investors
is
particular
1953 where the postwar upward nonbank
smore restrictive credit policy on

and this would

the

If the excess profits tax is al¬
lowed to expire as of mid-1953, it have attained for a good many
would have no significant effect years.
Finally, in mid-January,
likely to be maintained for some upon tax collections or Treasury the discount rate was increased;
time and that it might be advis¬ financing requirements in the cur¬ this was the first change since

ments

trendin

fiie

of

end

short-term

reached

Thursday; February 5,1953

•.

.

Now that the discount rate has

ket rates, and the level* of mem¬

raised, the problem of ap¬ ber bank borrowing* may also
praising the significance of the provide some clues to the futureaction becomes important. Since
been

the authorities offered

tion

as

action,

to

the

explana¬

Debt

for their

There

no

reasons

Management Policies
is little

doubt that

the:

conclusions may be election presages a critical re¬
largely conjectural, although not examination of our policies of debt:
without some basis. A survey of management by people wrho are?
any

financial and economic trends fails
to

disclose

developments in

experts in the field,, who are not
the possessed of a chronic low interest-

first half of January that made the
action imperative. However, with

rate

bias, and who* are not com¬
to defending past policy

mitted

bank loans at record

«
levels, with decisions.
One of the big problems con¬
credit, and with fronting the Secretary of the?
business sentiment generally quite Treasury is to achieve a moreoptimistic, the authorities prob¬ balanced distribution of maturities;
ably felt that a modest increase in of the public debt. While our
the discount rate was appropriate. economy obviousy requires a largeof
As a part of its long-range pro¬ volume
short-term,
highlygram of getting back into this liquid investment media of prime-

the recent evidence of continuing
demand for bank

phase of central banking, the Fed¬ quality, it seems generally agreecfe
that the present supply is unnec¬
believed that the rediscount rate essarily large, and the constant:
mechanism should be freed for periodic refunding* of large ma¬
use; obviously, a flexible credit turities complicate the task of the*

eral Reserve authorities doubtless

policy requires freedom to change
the rediscount rate under appro¬
priate conditions. The recent ac¬
tion
brought the discount rate
more into line with existing levels
of open-market interest rates; thus
the action in

a sense

followed de¬

velopments in the money market.
On the other hand, it should be
kept in mind that the present
levels of money market rates re¬
flect the credit policies of the
Federal Reserve in recent months.
The

authorities in the exercise of their
functions

While

of

credit

control: *

balanced maturity dis¬
tribution cannot be attained in at
few

a

months,

two,

a

which
the

can

new

tion

or even

in

a year or

modest start has been made-

to

be

accelerated

Administration.
the

issuance

under

In addi¬

of medium-

term securities to

the

replace some of
maturing short-term indebted¬

ness

of the

Treasury, it

seems

ai

reasonable

guess that considera¬
tion will be given, perhaps later

timing of the action on the
rate can be explained in the year, to the issuance of a
grounds.
One set longer-term marketable, bond, to
of factors revolves around pros¬ tap the nonbank market.'.

discount
upon

several

The important question in which:
cash balance was on the high in order to reduce the pressure on pective developments in the money
beginning of this cal¬ the money market arising out of market. The rapid seasonal expan¬ we as bankers have a vital interest
endar year; and this could be re¬ the seasonal increase of money in sion in business loans normally is how aggressively this policy of
may be some companies that feel duced, thus cutting the amount of circulation and the rising loan de¬ ends about the turn of the year; funding the short-term, debt will
their working -capital
require¬ new financing required during the mand. In spite of this action, how¬ continued purchases of: govern¬ be carried forwards It is my view




ury

side at the

Volume 177

^Number 5192

that while further

.

.

The Commercial and Financial Chronicle

.

will

moves

be

Continued

made, the approach to the problem

jyill be relatively careful and

opera¬

tion

as

to

be

conducted

so

contribute

to

cline in the government bond
ket or to the prospect of a
tinued

upward

terest

rates

on

not

significant de¬

a

mar¬

con¬

in

movement

government

in¬

secu¬

rities.
for

reason

View

is

that

countered

this

point

of

problems en¬
funding the debt

would be increased by a persistent
downward trend in bond prices.

Certainly, if the investment
munity
became
convinced
bond

prices

nificantly

going to

were

com¬

that

a

still

are

the

Added to them

second

trade

so-called

turities.

is

portfolio

If bankers
tive

if

extending their

Steel

half

managers

rates

would

extend

their

provide

later,

be

attrac¬

I

very

doubt
to

eager

maturities

substantial

a

well.

as

more

to

and

market

for

medium-term.
Treasury
obliga¬
tions; to the contrary, they would
probably
prefer
to
remain
in
fairly short-term obligations.
■

Also,

significant

a

in

1

the

it

continued

bond

time,

disturbance

market, especially if
for

might

some

period

conceivably

of

have

-broad economic effects that might

excess

producing at

or

near

consumers

still

are

Steel Output

At

the

time

same

domestic

steel

is

increasing, says
"Steel," the weekly magazine of metalworking, the current week.
Growth of steel shipments from Japan has forced European
steel almost off the West Coast market in galvanized
sheets, black
plate and plate, it states, adding, there's belief the rebuilt Japanese
steel industry is potent competition for West Coast steel producers.
On

the

are

East

Coast, Dutch foundry iron is now available for
first-quarter delivery at prices not much above the domestic ones
and the United States market is being felt out also for
50,000 tons
of Scandinavian off-grade iron.
Further, some premium price sellers of plates are looking for
customers—an indication of

easing in demand, this trade maga¬

an

zine notes.

Disappearance of frenzy from the steel market, along with
good weather this winter, is contributing to a softening in demand,
and in prices in some cases, for steelmaking
scrap,
continues
"Steel."
A

clue

that continued

bond could be

found, provided the

Treasury were to put a sufficiently
high coupon rate on the new issue.
But

the

offering of

a

large,

very

high coupon, long-term market¬
able bond would have substantial
repercussions not only in the gov¬
ernment

bond

market but

corporate bond market
;

would

doubtless

upset

in

the

well. It

as

the

latter

and also tend to reduce the supply
of funds for real estate
mortgage

^financing.
ditions

If these unsettled

continued

long

con¬

new

security offerings and thus
the level of capital
expenditures,
building,

construction,
■

All
I

and

em¬

things considered, therefore,
think
an
appropriate

would

of

course

dertake

action would

be

to

un¬

the

funding operation in
after a careful ap¬
praisal of the supply of invest¬
ment funds likely to be available.

a

modest way

If

this

is

the

followed,
ness

that

course

will

be

we may see some weak¬

and

now

then

in

the

So, there are some guesses—I
hope informed ones—for 1953. I

t

recognize that it is probable that
I shall get the reputation for a
ruddy complexion because of the
number

?

of times my face will be
red during the course of the
year.

At

Despite the signs of continued movement toward a balance
supply and demand throughout all steel products, con¬

affecting banking trends

be worth

something to

event, it has been

you.

may

In any

as

Helping restore balance

between

supply and demand is the
industry's high production rate. When all the figures are tal¬
lied for January they will show a new all-time monthly record
of steel production, close to 10 million net tons for ingots and cast¬
ings, concludes "Steel" magazine.

steel

The

American

Iron

Steel

and

000

of

tons

ingots

and

Jan. 26, the actual rate

2,240,000

announced

tons.

A

steel
was

month

for

In

castings.

the

week

starting

99.4% of capacity and output totaled
actual

ago

output

stood

at

Slightly Upward in Latest Week

The amount of electric energy
and

power

mated

at

distributed by the electric light
industry for the week ended Jan. 31, 1953, was esti¬
8,150,534,000 kwh., according to the Edison Electric

ment

business

Worth

of

the

Securities

First

Fort

Company

has

been merged with that of J. F.
Perkins & Company of Dallas, and
will

be

as

branch office of the

a

continued

in

Fort

Worth

Perkins

company, under the direction of
Pierre Mire and Mildred Guinn

Mire.

The

ceding
102,000
Feb. 2,
for the

current

total

6,460,000 kwh. above that of the pre¬
week when output totaled 8,144,074,000 kwh.
It was 578,kwh., or 7.6% above the total output for the week ended
1952, and 51,149,000 kwh. in excess of the output reported
corresponding period two years ago.

Car

corresponding week

a year ago,

of 30,374 cars, or 4.2%
a decrease of 86,525

Maies

aggregated

compared with 113,795 cars
vised) in the previous week and 71,687 cars one year ago.
118,005

cars

Total output for the past
and

week was made up of 118,005
23,734 trucks built in the United States, against 113,795

and

26,810 trucks the previous week and 71,687

trucks

cars

and

(re¬

have

Handfuss

Francis

I.

Santa

Handfuss
Dean

and

become

du

Pont

Monica
was

Ted

&

Sork
with

Co.,

Boulevard.

previously

Witter & Co. Mr.

with Merril

J.

affiliated

9640
Mr.

with

Sork

was

Lynch, Pierce, Fenner

-,&rBeane




Domestic

this week

Live

sugar

some

markets developed

easiness

grinding got under

as

hog prices

cars

in the comparable 1952 week.

the week ended Jan. 29 from

Food Price Index

173

in

the

Registers First Decline in Six Weeks

The Dun & Bradstreet wholesale food

price index turned lower
The index fell to

last week Jo mark the first drop in six weeksr

.

a

.substantial de¬

Spot cotton prices scored moderate net grains the past weefe
following irregular fluctuations during the period.
Trading was
more active in most markets and some improvement was noted/
in both domestic and export

price-fixing but sustained support wax:
The Bureau of the Census reported ginnings of 1952 crop,
cotton to Jan. 16 had reached 14,715,000 running bales, indicating
lacking.

small quantity remaining to be ginned to reach the esti¬
Mill demand for cotton was better
and mill buying was more active than for many weeks. Reported
sales in the ten spot markets last week amounted to 159,500 bales,
comparing with 137,700 bales the previous week, and 192,100 ire
the corresponding week a year ago.

only

a

mated crop of 14,895,000 bales.

Farmers continued to place cotton into the government loan
in large volume.

program

Entries during

the

highest for

Jan. 16 there

the week ending Jan. 16 totaled 200,000 bales*,
week this season.
For the season through

any

1,440,000 bales entered into the loan,

were

as

against

871,000 bales to the same date last year.

Trade Volume Lifted

mained

volume

above

Mildly Higher in Latest Week

slightly from the previous weekend

rose

re¬

in the period ended on Wednesday of
last week.
Promotions were extensive and price cuts were an¬
nounced in almost every line.
While credit terms remained ex¬
a

year

ago

ceedingly liberal, instalment buying declined somewhat from the
,

The total dollar volume of retail trade in the week was esti¬

Bradstreet, Inc., to be from 2 to 6% higher than
Regional estimates varied from the year ago levels by>
the following percentages:
New England, Midwest and South¬
west +2 to +6; East and Pacific Coast +1 to +5; South and.
Northwest +3 to +7.
mated by Dun &
year ago.

Consumers evoked

more

interest in spring apparel and sales

increased slightly.
rise

The

caused

was

mainly

extensive fashion and price

by

promotions.
of nylon and orlon

Total

dollar

Lower

increased

were

in increasing demand. Purchases

blouses continued to be higher than a year ago.

volume

volume

was

of food

was

below

a

slightly above

a

year

ago,

substantially above the comparable 1952

prices for meat, produce and dairy products resulted
Chain stores and large independent super¬

sales.

advertisements.

in meat prices in their weekly

Beef prices were estimated

at being about 10%

year ago.

Volume

in

house-furnishings

was

almost unchanged

from a

and slightly above a week ago. Furniture, bedding, ap¬
pliances and floor coverings were in wide demand.
year ago

Following the Presidential inauguration, volume in
sets dipped slightly in most parts of

the

7.292 cars and 1,720 trucks against
7.276 'cars and 1,740 trucks in the prior week and 3,203 cars and
2,875 trucks in the comparable 1952 week.

firmer tone*

in Cuba.

way

only slightly despite

rose

a

noted at the beginning of

was

cline in market receipts.

24,637

Canadian plants turned out

►

world

and

at the week-end but

cars

162 in
preceding week, Dun &
Bradstreet, Inc., states. Casualties were about even with 1952 and
1951 when 164 and 159 occurred, but they were only one-half as
numerous as in prewar 1939 when the toll was
318 in the com¬
parable week of that year.

fred

actual needs.

markets stressed the sharp decrease

car production in the United States last week ad¬
highest point in 12 weeks, according to "Ward's Auto¬
motive Reports."

as

in the Mid-West and heavy

slightly higher as moderate trade demand encountered limited of¬
ferings. Warehouse stocks of cocoa declined to 71,447 bags, from
77,117 bags a week ago, and compared with 90,431 bags on the cor¬
responding date last year. Coffee prices remained steady and firm.
in rather quiet trading.
Roaster demand was confined largely to-

in

vanced to its

winter

pressure

flour business last week continued quiet as large
jobbers showed little interest in buying beyond their
prompt requirements.
Independent bakers, whose stocks Were
running low, bought moderate to fair-sized lots of hard winter and
spring wheat flours toward the end of last week. Cocoa finished

levels.

Further Gains

In Past Week

unfavorable

under considerable

Domestic

while unit

Commercial and industrial failures declined slightly to

Al¬

weather

continued

and
was

bakers and

and

11% below the corresponding week in 1951.

United States Auto Output

It

Corn

prospects.

Women's coats and suits

The week's total represented a decrease
below the
cars, or

loan

government

offerings of CCC corn
discouraged buying.
Trading in grain futures on the Chicago
Board of Trade slackened and dropped to a daily average of 39,300,000 bushels last week, from 51,800,000 the week before, and
41,800,000 a year ago.

preceding week.

(Special to The Financial Chronicle)
—

crop

Loadings Decline 1.1% Below Preceding Week

Loadings of revenue freight for the week ended Jan. 24, 1953,
totaled 697,041 cars, according to the Association of American Rail¬
roads, representing a decrease of 7,838 cars, or 1.1% below the

Business Failures Ease Slightly in Latest Week

HILLS, Calif.

the

wheat
mild

was

Two With F. L du Pont
BEVERLY

leading grains declined the past week following the
shown the week before. Weakness in wheat reflected

preceding periods.

Institute.

Passenger

FT. WORTH, Tex.—The invest¬

Prices of

Retail

Electric Output Points

Bradstreet

daily wholesale commodity price index, moved within a fairly har¬
row range last week.
The index closed at 279.32 on Jan. 27, com¬
paring with 279.58 a week earlier, and with 308.63 on the corre¬
sponding date last year.

the

that

98.2%, or
2,213,000 tons, while a year ago when the capacity was smaller
actual output was 2,079,000 tons, or 100.1%.

opportunity
problems with you.

Merged With J. F. Perkins

Range Last Week

,

distinct pleas¬

a

Institute

operating rate of steel companies having 93% of the steelmaking
capacity for the entire industry will be at an average of 95.6% of
capacity for the week beginning Feb. 2, 1953, equivalent to 2,154,-

to be afforded the

ure

to discuss these

such

large bars, heavy plates, seamless
tubing, wide flange beam, hot-rolled and cold-rolled carbon sheets
and nickel-bearing grades of stainless steels.

least, the check list of the fac¬

tors

will still have to contend for awhile with shortages of the

sumers

bond

market; but I doubt that we would
experience a long-continued in¬
crease in long-term interest rates.

Authority that government con¬
Also, the

between

most-wanted products

&

NairPdw

a

The general price level, as measured by the Dun &

steel production and usage should end April 1.

on

government is increasing second-quarter steel allotments for some
consumer durable
goods, this trade weekly states.

enough,

they could reduce the volume of

ployment.

trols

,■>

•••

Wholesale Commodity Price Index Moved in

improvement in the balance between

belief of the National Production

rather large

a

long-term marketable

general trend of food prices at the

level.

under

supply-demand balance

improving, offerings of foreign iron and steel

have

a

wholesale

export demand but some support devel¬
oped at times due to reports of heavy impoundings of cash grain

supply and demand of steel in the United States is expected is the

doubt that

its chief function is to show the

less active domestic and

Adversely Effected This Week

By Strike at Inland Steel

monetary and fiscal authorities. I
no

sum

strength

be regarded as undesirable by the

market for

on

The Dun & Bradstreet wholesale food price index represerfte
total of the price per pound of 31 foods in general use, hbet

the

its rated capacity, this

absorbing record shipments of
finished items, with no sign of relaxing their aggressive pro¬
curement efforts.
But there are indications that peacetime prod¬
uct
relationships are beginning to be restored, declares this
trade authority.

ma¬

not

anticipate

interest

they

true

only of
investors but probably of

nonbank

bank

in

This

January 27, from $6.25 a week earlier. It was the lowest
weeks, and compared with $6.61 on the corresponding date
year, ago, or a decline of 5.9%.
:-.H
,,-,j

weekly further states.

two, they would not be too much
interested

Industry

is a strong hope for tax cuts
profits tax), junking of price
controls, and labor peace.
If all these things come to pass, 1953
could be an excellent
year, for demand still shows no sign of
failing, and it is generally conceded that the industry will enter

or'

year

present.

(especially

sig¬

sag

the next

over

$6.22

.

The State of Trade and

the

in

r

ar*

in four

the
One

i

5

page

cau¬

tious, and that the funding
will

from

C6i3)

television

the country.

Department store sales on a country-wide basis, as taken from
Federal Reserve Board's index, for the week ended Jan. 24,

1953, increased 4% from the level of the preceding week. In the
previous week an increase of 2% was reported from that of the
similar week of 1952.
For the four weeks ended Jan. 24, 1953, an
increase of 1% was reported.
sales

registered

an

For the year 1952, department store

increase of 1% above 1951.

Retail trade in New York last

like period a year ago,

t

week held about even with the

J

trade observers report.

According to the Federal Reserve Board's index department
store sales in New York City for the weekly period ended Jan. 24,

j

j
1953, decreased 5% below the like period of last year. In the pre- (
ceding week an increase of 2% (revised) was reported from that
of the similar week of 1952, while for the four weeks ended Jan. 24,
1953, a decrease of 5% was recorded.
For the year 1952, volume
declined 7% under the

preceding year.

_

./.

i-

30

The Commercial and Financial Chronicle

(614)

Thursday, February 5,

.

.

.

* INDICATES

Now in

Securities
*

* ACF-Brill Motors Co.
(letter of notification) 30,000 common stock pur¬

Feb. 3

(approximately $1.25
& Co., New York.
Underwriter—None, the warrants to be offered through

chase warrants.
per

share).

one

or

Price—At market

Proceeds

—

Allen

To

Stock Ex¬

the American

member firms of

more

change.
American

Alloys Corp., Kansas City, Mo.
Dec. 15 (letter of notification) 1,000 shares of preferred
stock.
Pric^—At par ($10 per share).
Proceeds—For
working capital.
Underwriter—McDonald-Evans & Co.,
Kansas City, Mo.
i
American Pipeline

Producers, Inc.

Jan. 5

(letter of notification) 599,000 shares of common
stock (par one cent). Price—50 cents per share. Proceeds
—To drill wells. Office—Room 308, Texas Eastern Bldg.,

Shreveport, La.

Underwriter—W. C, Doehler Co., Jersey

^ Audio & Video Products Corp.
Jan. 23 (letter of notification) 38,000 shares of
per

(par

one

cent). Price—At market

share). Proceeds—To

a

common

(about 35 cents

of selling stockholders.

group

Office—730 Fifth Ave., New York 22, N. Y. Underwriter
—None.
.

14-day

standby). Certain stockholders have waived
Price—At par. Proceeds—To repay $1,014,500 of outstanding notes and for drilling expenses and
working capital.
Underwriters — Dallas Rupe & Son.
Dallas, Texas; Carl M. Loeb, Rhoades & Co., New York;
and Straus, Blosser & McDowell, Chicago, 111. Offering
—Postponed temporarily.
their rights.

•

Canadian

Prospect Ltd. (2/6)
Nov. 24 filed 303,595 shares of common stock (par 33V3
cents), of which 235,000 shares are to be issued upon
exercise of share rights and 68,595 shares are to be sold
for account of selling stockholders. Price—To be sup¬
plied by amendment. Proceeds—To company to be used
for operating expenses to pay for future exploration and
development of leases, etc. Underwriters—White, Weld
& Co., New York, for an undetermined number of shares;
balance through a Canadian underwriter to be named

29,000 shares of 6%

cum¬

ulative preferred stock, series A, of which a maximum
were offered on Jan. 27 (for a 30 day

of 15,927 shares

first for subscription

class A and

by

ir Carborundum Co., Niagara Falls, N. Y. (2/26)
Feb. 4 filed 271,940 shares of common stock (par $5).
Price—To be supplied by amendment. Proceeds—To cer¬
tain selling stockholders. Underwriter—The First Boston
Case

common

1,

(J. I.) Co., Racine, Wis.

(2/11)
filed $25,000,000 of 25-year debentures due Feb.

1978.

Price

To

be

supplied by amendment. Proceds—To retire short-term bank loans and for working
capital.
Underwriters — Morgan Stanley & Co. and
Clark, Dodge & Co., both of New York.
—

ic Central States Paper & Bag Co., St. Louis, Mo.
Jan. 22 (letter of notilication) 13,000 shares of common
stock.
Price—$18 per share. Proceeds—For improve¬

capital. Underwriter—Bioren & Co., and H. G. Kuch &
Co., both of Philadelphia, Pa.

ments.

492.75.

Proceeds

To defray cost of making payment
obligations issued pursuant to the warrants
and, if there is excess, for working capital. Business—
—

of deferred

Real estate.

Office—510 Baker Bldg.,

Big Basin Oil, Inc., Holyoke, Colo.
Dec. 8 (letter of notification) 1,100,000 shares of com¬
mon stock
(par five cents). Price—25 cents per share.
Proceeds—To repay notes, and for drilling expenses and
new equipment.
Underwriter—E. I. Shelley Co., Den¬

Colo.

par

($100

per

per

share.

(Bids

ir Commonwealth, Inc., Portland, Ore.
13 (letter of notification) 27,000 shares of common
subscription first by present stock¬
holders.
Price—At par ($10 per share). Proceeds—For
working capital. Office — Equitable Bldg., Portland 4,
Jan.

stock to be offered for

Underwriter—None.

-

ir Commonwealth Oil Co., Miami, Fla.
Jan. 26 (letter of notification) 5,000 shares of
stock

(par

—To

C.

ir Community Credit Co., Omaha, Neb.
26

common

Rhode

Island

(White.

.

Weld

&

Oil

First

Co.__

Proceeds

mining expenses. Office —6485 N, W. St. Helens
Road, Portland, Ore. Underwriter—Standard Securities
Corp., Spokane, Wash.

Byrd Oil Corp., Dallas, Tex.
Oct 22 filed $1,750,000 of
10-year 5%% convertible sinkmg fund mortgage bonds due Nov.
1, 1962, to be offered
for subscription by common
stockholders at the rate
of $100 of bonds for each 28
shares of stock held
(for

Boston

Proceeds—To

repay

construction program.
Underwriters—
by competitive bidding.
Probable

company's

determired

be

2,

>

1953
invited)

be

to

March

Common

-

3, 1953

^

*

(Bids

Preferred

be

to

invited)

New York Central RR

„_Equip. Trust Ctfs.

(Bids

Searight)

(Bids 11:30

_-Equip Trust Ctfs.
be

to

March

Financing Corp.—-Common
a.

4, 1953
invited)

EST)

noon

(George

9, 1953

Arizona Public Service Co
Bonds

First

(The

Boston

Common

and

Corp.

Blyth

&

Co.,

Inc.)

EST)

a.m.

'

February 10, 1953

New

York, Chicago

&

(Bids

March

Narragansett

Electric

^-Debentures

(Bids

St.
be

to

Louis

RR

10, 1953

Co

Bonds

be

to

March

Bonds

Invited)

Mississippi Power &

invited)

Case

(J. I.) Co
& Co.

Clark,

and

Dodge

&

Equitable Gas Co
(The

First

Merrill

Co,),

Preferred

Boston

Corp.; Kidder, Peabody & Co.;
Lynch, Pierce, Fenner & Beane; and

(Bids

Stores, Ine.__
(Eastman, Dillon

Insurance

&

to

-Common

stockholders—no

(Bids

Preferred

be Smith,

(May

.

Co

Common

Co.

of

New

(Bids

11

March

(Lids

.

31,

11

to be

Bonds

Florida

(lids

Illinois

*

Bonds

by

New

CST)

Orleans. Public
(Bids

-

invited)

Service

& Preferred
:■

Inc

___^__LBonds

be invited )

to

15, 1953

April

—Common

Southern Co.
f
I

(Bids

11

a.m.

EST)

Common
Brothers

May

I

Alabama

February 25, 1953
to

be

to

]

stockholders—underwriters

Brothers;
&

12,

1953

Co.__

Bonds
11.a.m.

EST)

Common

Lynch, Pierce, Fenner

Corp.; Lehman

Power

(Bids

Maryland .Casualty Co
(Offering

Bonds

invited)

April 14, 1953

^

Corp.
(Lehman

Merrill

i

Kidder,

February 20, 1953

Chicago

be

to

April 13, 1953

Equip. Trust Ctfs.
noon

-Bonds

:

invited)

Texas Electric.Ser. Co.___^__^_Bonds
(Bids

-Common

be

to

Light Co._i

(Bids

Co.)

RR
(Bids

Lehman

&

invited)

Peabody &

Central

Power

EST)

stockholders—underwritten

to

Common

April 7, 1953

i

a.m.

1953

invited)

California Electric Power Co

EST)

Iowa Southern Utilities Co._

be

to

Bonds

York, Inc
a.m.

Common

Co.)

California Electric Power Co

February 17, 1953
Edison

&

(Offering to.stockholders—no underwriter)

Common

(Peter W. Spiess Co.)

Con.

Barney

27, 1953

(Eids to be invited)

Oil Exploration

1953

Merritt-Chapman & Scott Corp._____—..Common

Co.)

Niagara Mohawk Power Corp.
Texas

EST)

a.m.

25,

March

February 19, 1953

Cleveland

11

Southern Indiana Gas & Electric Co

February 16, 1953
&

invited)

Bonds & Preferred

March

underwriter)

Frito Co
(Dittmar

.Bonds

(

be

Co.)

Co

(Offering

24, 1953

to

Georgia Power Co.____

Debentures

Bonds

invited)

Dallas Power & Light Co

White, Weld & Co.)

Food Fair

be

to

March

Debentures

Stanley

17, 1953

Light Co

(Bids

February 11, 1953

;

offices

Corp.)

Hogle & Co)

Tennessee Gas Tranmission Co

(Offering

Pittsburgh

Boston

First

(Bids

February 9, 1953

Home Improvement

Common

___——

New England Power Co.__

South Carolina Electric & Gas Co.___

San Francisco

Co.

>

Corp.)

Baltimore & Ohio RR.:

(Eids




1983.

States)

February 18, 1953
Niagara Mohawk Power Corp.-!

all

1,

for expenditures made in connection

Central RR. of New Jersey..____Equip. Trust Ctfs.

United

in

*

A.

(Bids

to

due Feb.

series I,

March

—For

JVires

Neb/

$22,000,000 bank loans and the balance to reimburse the
treasury, in part,

____.Debentures

(The

Gulf

Price—10 cents per share.

Private

5%%

16 filed $40,000,000 of first and refunding mortgage

bonds,

•

Philadelphia

of

Consolidated Edison Co. of New York, Inc. (2/17)

-Common

___

Co.

Diamond Alkali Co

Ave., Mt.

Underwriter—None.

Boston

shares

1,500

Underwriter—Wachob-Bender Corp., Omaha,

tal.

(The

February 6, 1953

«

Bunker-Chance Mining Co., Portland, Ore.
Jan. 12 (letter of
notification) 1,000,000 shares of class

New York

notification)

of

(letter

cumulative sinking fund preferred stock, series A. Price
—At par ($100 per share). Proceeds—For working capi¬

(Goldman, Sachs & Co. and Lehman Brothers)

★ Budget Loan Co., Inc., Mt. Rainier, Md.
Jan, 26 (letter of notification) 6,000 shares of 6% cumu¬
lative preferred stock and
3,000 shares of class A common
stock. Price—At par
($10 per share). Proceeds—To in¬

B assessable stock.

common

cent). Price—$3.87V2 per share. Proceeds
Armour, the selling stockholder. Under¬
writer—Gordon Graves & Co., New York.
one

Dale

CSTt

noon

Canadian Prospect Ltd..'

(Morgan

3424

public offering.

Carborundum

May Department Stores Co

writer—None.

—

Underwriter—None.

Company intends to offer securities to broker-dealers for

March

Under¬

(par $1). Price—At market (about $5.37V2 per
share). Proceeds—To-improve plant and for new ma¬
chinery. Office—1821 Broad St., Utica, N. Y. Under¬

Office

Manufactures electrical equipment.

—-.Equip. Trust Ctfs.

stock

capital.

Corp., Philadelphia, Pa.
cumulative preferred
(par $1) and 255,000 shares of common stock (no
par—stated value $1) to be sold in units of two shares
of preferred and one share of common stock.
Price—$3
per unit. Proceeds — For working capital.
Business —
500,000 shares of 6%

February 26, 1953

Northern

RR.

Proceeds—

purposes.
To be named by amendment.

ir Brunner Manufacturing Co.
Jan. 26 (letter of
notification) 15,000 shares of

Rainier, Md.

Products

filed

1

February 5, 1953
International-Great

W..

crease

Rouse, Brewer & Becker,

—

stock

To

(Bids

Underwriter—None.

To^ acquire leases and for corporate

1

Code

Dec.

with

cumu¬

share).

Office—5104 MacArthur

Price—Approximately 64.48 cents

Md. Underwriter
Washington, D. C.

York.

(J.

Bristol Oils Ltd.,
Toronto, Canada
Sept. 25 filed 1,000,000 shares of common stock (par $1).

writer—None.

Spring,

★ Cinerama, Inc., New York
Feb. 4 filed $2,000,000 of 4% convertible debentures due
1958. Price—At principal amount. Proceeds—For work¬
ing capital. Underwriter—Gearhart & Otis, Inc., New

English

ir Bishop Equipment Co., Washington, D. C.
(letter of notification) 1,000 shares of 6%

Jan. 21

Blvd., N.W., Washington, D. C.

$10 per share. Proceeds—To make
Eig Bldg., 8641 Colesville Rd.. Silver

NEW ISSUE CALENDAR

equipment and working capital. Office — 1302 Ontario
St., Cleveland 13, Ohio. Underwriter—None.

Price—At

ISSUE

common,

loans. .Office—321

Office—5221 Natural Bridge Blvd., St. Louis, Mo.

ir Bi-Metals Corp., Cleveland, Ohio

Proceeds—For working capital.

REVISED

Minneapolis, Minn.

Jan. 27 (letter of notification) 300,000 shares of common
stock. Price — At par ($1 per share).
Proceeds — For

lative preferred stock.

share; and of

Underwriter—None.

Underwriter—None.

ver,

ITEMS

ic Coastal Finance Corp., Silver Spring, Md.
21
(letter of notification). 12,000 shares of $150
cumulative convertible preferred stock and 1,000 shares
of class A common stock.
Price—Of preferred, $24 per

Jan.

Properties, Inc., Minneapolis, Minn.

Jan. 26 filed 5,181 shares of common stock (par $1) and
"deferred obligations"
to pay an aggregate of $333,-

PREVIOUS

Jan.

Jan.

stockholders at rate of
ong new share for each five old
share held (with an oversubscription privilege). Price—
At par ($10 per share). Proceeds—To increase working

Baker

1

Ore.

Corp., New York.
Jan. 21

Automobile Banking Corp., Philadelphia, Pa.

Jan. 15 (letter of notification)

'period)

Registration

later.

City, N. J.

stock

a

ADDITIONS

SINCE
•

1953

and

&

Beane;

Paine,

Curtis)

may

First

Webber,

include

June

Boston

Jackson

Gulf

Power

9, 1953
Bonds

Co
(Bids

11

a.m.

EST)

Volume 177

Number 5192

.

.

The

.

Commercial and Financial Chronicle

bidders:

Halsey, Stuart & Co. Inc.; Morgan Stanley &
Co.;" The First Boston Corp. Bids—Tentatively expected
to be received up to 11 a.m. (EST) on Feb. 17.

ceeds-^For expansion of business and general corporate

itCorona do Copper Mines Corp.
Jan. 23 (letter of notification > 299,970 shares of

★ Fuller Brush Co., Hartford, Conn. •
Jan. 29 (letter of notification) 3,000 shares of preferred
stock. Price—At par ($100 per share). Proceeds — For
working capital. Office—3580 Main St., Hartford, Conn.

Business—Manufacture and sale of food prod¬

purposes.-

Underwriter—Dittmar

ucts,

common

stock

(par 10 cents). Price—$1 per share. Proceeds—
acquire leases, for exploration expenses, to repay
loans and for working capital.
Office—100 West 10th
St., Wilmington, Del. Underwriter—Charles J. Maggio,
Inc., New York.
To

gas

leases.

Offices—9

Main

St.,

Galeton,

V

to

the

corporation's Savings

sion Plan.

stock

tible debentures due March,

common

filed

Co.

Business

—

Underwriter—Gearhart &

Price—At market (approximately $3.25
per share); Proceeds—To Detroit Trust Co., co-executor
of .the Estate of Fred Schrey.
Underwriter—Wm. C.
Honey & Co., Detroit, Mich.
Diamond Alkali

per

construction.

(par $1).

Jdri. *21

Sharing

Pen¬

1973, and 1,565,000 shares

(par 10 cents). Price—Par for deben¬
share for stock. Proceeds — For new

tures and $1

Manufacturing Co.
10,000 shares of

Profit

Feb. 3 filed $1,350,000 20-year 6% first mortgage conver¬

Pa.

of class A stock

(letter of notification)

and

:

'

Dec. 22

'

■ -

it Grand Bahama Co., Ltd.^~ Nassau

Underwriter—None.
Detroit Hardware

•.

Underwriter—None.

(Pa.)
Feb. 3 (letter of notification) 950 non-assessable common
-shares, Price—At par ($100 per share). Proceeds—For
drilling for oil and gas and for acquisition and sale of
and

Co., San Antonio, Tex.

★ Goldblatt Bros., Inc., Chicago, III.
Jan. 26 (letter of notification) $300,000 of contributions

^Dantz Run Development Co., Inc.

oil

&

^

,

'

Hotel and

land

development.

Otis, Inc., New York.

tributors Group, Inc., New York.

Jan.
stock

holders

of

Feb.

record

11

on

basis

of

one

°-Box

^

stock (par $30) and 3,750 shares of common stock
(£ar $l)
lO 'be .qffered in units of two shares of preferred7 stock

new

share

shares

held; rights to expire on or about
Price—$50 per share. Proceeds—To increase

March 3.

im-Dallas

.

Gyrodyne Co. of America, Inc.
hitd--o[h^shsi]re; of - common stock.Price—$61 per^ unit.
Nov. l3; filed 350,000 shares of class A common stock
•/PreeetdsrTr^W.develop and redesign. franchise sales. •;.(par $1); W be offered for subscription by stockholders
ficr -^6523^Euclid Avenue;
Cleveland/ Ohio."—Under- ^ of-record Dec. 22, 1952, on a pre rata basis; rights to ex7--w-p^^ei^None.•*%?.::
*
oh fFeb. 28, 1953. The offering will include 50,000
■■••v.".:
;
jto directors, officers and employees of the com"

•

.

of,common:■VfPany:';-to.pertain individuals and firms in payment
For
'^isiock^ar-IO' cents)^ Price—$1. per share. Proeeeds^-For for service^.- g?rice^.$^.75 per share.^ Proceeds — For
»-V'&&&&*letter.of notification;'300,000-shares

<;5 ^kpanMhjh and^workingcapital/ Office "—'.17, Stat/St.,
■% >^3;''--New^Y^k'4^:Undeinvriter-^-J[amea T. Dewitt & Co., Inc.,
:
Washington, D. C.
• *"
•
I
> r
' *

Philadelphia,4Pa^

^to^k" .("par one eent).. Price^$3 per share.
,
'

J

Proceeds

'To.Wquiref leases 'and drill wells.. Underwritet-^Hopper,
Soliday & Co., Philadelphia,; Pa.
7,
English Oil Co., Salt Uke City, Utah (2/6)...
/an. 5 .filed 3,435,583 -shares Of common stock, of which
,750,000 shares; 5areT4a be• offered publicly, 250,000 shares

-

-i

k

are.

to

be reserved

for^ officers and key employees and

options, arid 2,435,583 shares in exchange for oil,and gas
properties and interests therein. Price—At par-C$1 per
share).,
ties
ues

.Proceeds—For acquisition of additional

and
ana

'Lake

leases
leases,

Underwriter— T
unuerwriter

A

Hnffle

w°8Ae

proper-

Cc,

k

&

^

%alt
fealt

City, Utah.

Equitable Gas Co*, Pittsburgh, Pa. (2/11) m
;Jan. 21 filed 100,0Q0 shares of cumulative convertible
'preferred stock (par $100). Price—To be supplied by
'amendment. Proceeds—To repay bank loans and for new
construction. Underwriters
The First Boston Corp.;
Kidder. Peabody & Co.; Merrill Lynch, Pierce, Fenner
and Beane, and White, Weld &
Co., all of New York.
Erie Meter

(letter

9

Systems, Inc., Erie, Pa.
of

notification)

$300,000 of 15-year 6%
sinking fund debentures dated Nov. 1, 1952 and. due
Nov. 1, 1967; Price—At par and accrued interest. Proheeds—To repay bank loans and for working capital.
Office—1602 Wagner Avenue, Erie, Pa. Underwriter—
None.

Smith & Root, Erie,

Pa., will act

,★ Fall River Electric Light Co.
-Jan.

29

as

distributor.

"

$6,800,000 of first mortgage and collateral
.trust bonds due Jan. 1, 1983. Proceeds—To redeem $2,.000,000 of 3V8% bonds and to repay $4,800,000 of bank
loans.

Underwriters—To

determined by competitive
Halsey, Stuart &^Co. Inc.;
Lehman Brothers, Bear, Stearns & Co. and Salomon
Bros. & Hutzler (jointly); Glore, Forgan &*£o.; The
First Boston Corp. Bids—Expected to be received some¬
time in March at 49 Federal St., Boston, Mass.;:

bidding.

be

Probable bidders:

★ Flui Dyne Engineering Corp.,

Minneapolis Minn.

Jan. 28 (letter of notification) 600 shares of class A com¬
mon stock.
Price—At par ($100 per share), proceeds—

For operating equipment.

Office

—

425 Noirth

Minneapolis, Minn. Underwriter—None.
First Securities

7th St.,

/>.•

Corp., Philadelphia, P&'

'

^

Hemisphere-Western Oil Co.
Dec., 3 (letter Of ^tlfMation) 1,196,000 shares of common
ceeds—Toacquire working interest in oil wells.

Office

—Cravens ~Bldg.,-

Winner &*

Oklahoma City, Okia. UnderwriterMeyers, Lock Haven, Pa.

holiday Plastics, Inc., Kansas City, Mo.
Dec.lO (letter of notification) 3,799 shares of common
stock (ho par).
Price—$13 per share. Proceeds—For
working capital. Office—410 East 27th Street Terrace,
Kansas City, Mo. .Underwriter—Prugh, Combest, &
Land
...

H

Kansas Citv

Inc

Mo

V

r«r»

(*/q\

* Home Improvement Financing Corp. (2/9)
Jan.

30

(letter of notification)

common

stock

200,000 shares«of class
(par 50 cents). Price—$1.50 per share
of home improvements and

Proceeds—For construction

time financing in connection therewith. Office—240 West
Front

St.,

Plainfield, N. J.

Underwriter— George A.

Searight, New York.

(letter of ratification) 600,000 shares ot common
stock (par one cent) which includes 22,190 shares being

reoffered to the previous purchasers. Price—25 cents per
share. Proceeds — For expansion of business and for

.working capital. Underwriter

—

First Securities

Corp.,

Philadelphia, Pa.
.

• Food Fair Stores, Inc.
Jan.

21

filed

.

I
sinking fund de¬
Price—To be supplied by

(2/11)
$12,500,000 of 20-year

bentures due Feb. 1, 1973.

•

Hooker

Jan.

Electrochemical

Co.

amendment.

Proceeds—To repay $7,000,COO bank loans
acquire additional facilities. Underwrite*—East¬
man, Dillon & Co., New York.
and to

Foster Wheeler Corp.
*

ord Feb. 3

each

on

the basis of

10 shares of

preferred shares for
held; rights to expire
Proceeds—For expansion
capital. Underwriter — Smith,
one new

common

stock

Feb. 18. Price—$100 per share.
program

and

working

Barney Co., New York.

it Hycon Manufacturing Co., Pasadena, Calif.
(letter of notification) 60,000 shares of common
(par 10 cents). Price—At market (approximately
$1 per share). Proceeds—To J. M. White and F. D. Gearhart, Jr., selling stockholders. Office—2961 East Colorado
St., Pasadena, Calif. Underwriter—None, but sales may
be handled through White & Co., St. Louis, Mo., and
Gearhart & Otis, Inc., New York.
stock

Iowa Southern Utilities Co.

derwriters—To

be

determined by competitive bidding.
Halsey, Stuart & Co. Inc.; The First
Boston Corp.; Kidder, Peabody & Co.; Lehman Brothers,
Bear, Stearns & Co., Equitable Securities Corp., and
Salomon Bros. & Hutzler (jointly); White, Weld & Co.
Bids
Scheduled to be opened at" 11 a.m. (EST) on

Probable bidders:

Feb. 17.

Ispetrol Corp., New York
49,500 shares of common stock. Price—At
par ($100 per share). Proceeds—To finance purchase of
crude oil for Israeli enterprises and to purchase crude
oil and oil products for resale in Israel. UnderwriterIsrael Securities Corp.. New York.
Israel Industrial & Mineral Development Corp.
Oct. 6 filed 30,000 shares of class A stock. Price—At par
($100 per share). Proceeds—For industrial and mineral
development of Israel. Underwriter— Israel Securities
Corp., New York.
Oct. 29 filed

it Jewett & Sherman Co., Milwaukee, Wis.
Jan. 27
(letter of notification)
1,650 shares of com¬
mon stock (par $20), to be offered for subscription by
stockholders.

Stock

a

Option Plan."

Frito
Jan.

its subsidiaries under

26

"Restricted

Jf-

filed

115,000

(2/16-17)
share of convertible

stock

preferred

(par $7.50), of which 85,000 shares will be^bffered
publicly and 30,000 shares to employees. Price
To
.public, S10 per share; to employees, $9 per sharqf Pro-




ing capital.
Wis.

Co., Dallas, Tex.

stock (par 10 cents). Price—50 cents per
—For working capital. Office — 532

of common
share. Proceeds

Security Bldg^

Phoenix, Ariz. Underwriter—Weber-Millican Co., New
York.

it Management Funds, Inc., Jersey City, N. J.
Jan. 29 (letter of. notification) $100,000 of 3-year 7%
registered bonds. Price—In units of *$500 each. Proceeds
—To purchase retail installment -contracts and -uther
types of commercial financing. Office — 26 -Journal
Square, Jersey City 6, N. J. Underwriter—None.
♦ ^
^ Massachusetts Investors Growth Stock Fund, *
Inc., Boston, Mass.
Feb. 2 filed 500,000 shares of capital stock. Price — At
market. Proceeds—For investment.

Underwriter—Vance,

Price—$50 per share. Proceeds—For work¬
Office—106 West Florida St., Milwaukee 1,

Underwriter—None.

Kellogg Petroleum Products, Inc.
Jan.
stock

\

Mass.

Feb.

1, 1978. Price-^To be supplied by amendment. Pr»-i
refund part of debt and for expansion and"
working capital. Underwriters-^—Goldman, Sachs & Co.
and Lehman Brothers, both of New York.

ceeds—To

McCarthy (Glenn), Inc.
June 12 filed 10,000,000 shares of common stock (par 25

Price—$2 per share. Proceeds — For drilling of
exploratory wells, acquisition of leases and for general
corporate purposes. Underwriter—B. V. Christie & Co.,
Houston, Tex. Dealer Relations Representative—George
A. Searight, 50 Broadway, New York, N. Y. Telephona

cents).

WHitehall 3-2181.

Offering—Date indefinite.

it McCormick & Co., Inc., Baltimore, Md.
Jan. 21 (letter of notification) 700 shares of 5% cumula¬
tive preferred stock (par $100), 1,670 shares of common
stock (no par) and 5,843 shares of common non-voting
stock (no par). Price — For preferred, at par; arid tor
common stocks, $30 per share.
Proceeds —For working
capital. Office—414 Light St.. Baltimore 2, Md. Under¬

it McCutcheon Distributing Co., inc.
Jan. 29 (letter of notification) 29,900 shares of common
stock. Price—At par ($10 per share). Proceeds—For or¬
ganizational expenses, equipment and working capital.
Office—215-219 Twelfth St., Pittsburgh, Pa. Business—
To distribute home laundry electrical appliances manu¬
factured by Whirlpool Corp. Underwriter—None,
Mex-American
Nov. 3 filed

Minerals Corp.,

Granite City, III.

''

113,000 shares of 6% cumulative preferred

and 113,000 shares of common stock (par
in units of one share of each
class of stock. Price—$6 per unit. Proceeds—For work¬
stock (par $5)
10

cents)

to

be offered

ing capital. Business—Purchase, processing, refining and
sale of Fluorspar. Underwriter — To be supplied by
amendment.

(2/17)

Jan. 21 filed $7,000,000 first mortgage bonds due Feb. 1,
1983. Proceeds—For additions and improvements. Un¬

Jan. 5 filed 30,032 shares of common stock
(par;$10) to
be offered to certain officers and other key
employees

and

Magma King Manganese Mining Co.
Nov. 12 (letter of notification) 553,500 shares

cumulative converti¬

of corporation

-

expire Feb. 17. Price—$36.50 "per
additions and improve¬
Brothers and Blyth &

rights

writer—None.

15 filed 97,147 shares of $4.20

ble second preferred stock, series B (no par) being of¬
fered for subscription by common stockholders of rec¬

—

Jan. 21

held;

Proceeds—For property
Underwriters—Lehman

May Department Stores Co. (2/10)
^
Jan. 21 filed $25/00,000 of sinking fund debentures due

Jan. 21

filed

share.

None.

■—

•Dec.

(Ky.)

200,000 shares of common stock (no par)
being offered for subscription by common stockholders of
record Jan. 29 at rate of one new share for each seven
filed

8

Sanders & Co., Boston,

A

J

Louisville Gas & Electric Co.

engineering ahd cpnstruction of prototype coaxial heli¬
copter.- Office—Btr James, L. I., N. Y. Underwriter—

.

'

•

Jan.

Co., Inc., both of New York.

Co., Dallas, Tex. (2/11)
19 (letter of notification) 5,000 shares of capithl
(par $10) to be offered for subscription by stock¬

for eaofe 35

,

**

writer—None.

it Lehman Corp., New York (2/20)
Jan. 30 filed 37,800 shares of capital stock (par $1). Price
—To be supplied by amendment. Proceeds—To Estate of
Allan S. Lehman, deceased. Underwriter—Lehman Bro¬
thers, New York.

Gulf Insurance

due

supplied by amendment. Proceeds—
To retire $5,800,000 of 2% notes and short-term bank
loans' and for capital expenditures. Underwriter*—The
First Boston Corp., New York.
*

Oil Co.,

will offer any unsubscribed shares.

ments.

Underwriter—Dis¬

investment.

expire Feb. 11.

share. Proceeds—For working capital.

A" Kenya Gem Corp. (Pa.)
Jan. 27 (letter of notification) 100,000 shares of common
stock (no par). Price—$1 per share. Proceeds—To fi¬
nance
time payment sales and to expand faciHtieai^
Office—10 East Coulter St., Philadelphia 44, Pa. Under¬

shares

Proceeds—For

per

Underwriters—None, but Hamlin & Lunt, Buffalo, N. Y^

market.

1978. Price—To be

Ekco

Price—$125

Group Securities, Inc., Jersey City, N. J.
Feb. 2 filed 1,500,000 shares of capital stock. Price—At

(2/6)

$15,000,000 sinking fund" debentures

share for each 2.4 shares held; rights to

14

(letter of notification) 1,221 shares of capital
(no.par) being first offered for subscription by

stockholders of record Dec. 26, 1952, at rate of one new

Co.
notification) 400,000 shares of common
stock (par five cents). Price—60 cents per share. Pro¬
ceeds—To acquire additional properties. Office—927-929
Market St., Wilmington, Del. Underwriter—W. C. Doehler Co., Jersey City, N. J.
Mid-Gulf Oil & Refining

Nov. 10 (letter of

it Minerals Engineering Co., Grand Junction, Colo.
(letter of notification) 19,500 shares of coriimori
stock (par $1) and $296,250 of 5-year 8% debentures
(1,500 units) to be offered for subscription by present
stockholders. Price—$197.50 per unit.
Proceeds — For
construction of concentrating mill. Office — 801 Fourth
Ave. (P. O. Box 957), Grand Junction, Colo. Underwriter

Jan. 26

—None.

Mines Management, Inc.,
Jan. 19

stock.

Wallace, Idaho

(letter of riotification) 400,000 shares of common
Price—75 cents per share.
Proceeds—For ex¬

ploration and development. Offices—507 Bank St., Wal¬
lace, Idaho, and W. 909 Sprague Ave., Spokane, Wash.
Underwriter—None.
•

Minneapolis Gas Co.
7 filed 163,247 shares of common stock

Jan.

(par $1)

being offered for subscription by common stockholders
at rate of one new share for each eight shares held on
Jan. 23;

rights to expire on Feb. 9. Price—$20 per share.
shares of $6 preferred stock

Proceeds—To retire 5,841

and for new construc¬
Co., Inc., Minneapolis, Minn.

(at an estimated cost of $613,305)
tion. Underwriter—Kalman

Continued

on

page

40

40

The Commercial and Financial Chronicle

(616)

Continued

from

39

page

Ramie

Corp., Philadelphia, Pa,
(letter of notification) 300,000 shares of common
stock. Price — At par ($1 per share). Proceeds — For

'

-

working capital, etc. Business — To process vegetable
Underwriter—Grayson-Eigles Co., New York.

Price—$120

Regent Manufacturing Co., Inc., Downey, Calif.
first mortgage
bonds, of which 130 units will be issued at $1,020 each
and 40 units at $510 each. Proceeds—For building and
equipment. Office—11905 Regentview Avenue, Downey,
Calif. Underwriter
Hopkins, Harbach & Co., Los
Angeles, Calif.

—Life

holders of 6% preferred stock on a share

xx|ghts to expire March 23. Price
Proceeds

—

For

—

for share basis;
To be supplied by

Underwriters—To be determined by competitive bidding.
bidders: The First Boston Corp.; Blyth & Co.,

Probable

Inc.; Harriman Ripley & Co. Inc.; Lehman Brothers.
Bids—Tentatively scheduled to be received on March 3.

—

it Newton-Phoenix Oil Corp., Houston and New York
Feb. 3 filed 2,500,000 shares of common stock (par one

it Retail Credit Co., Atlanta, Ga.
Jan. 22 (letter of notification) 4,000 shares of common
stock (no par).
Price —$75 per share. Proceeds —For
new
equipment. Office—90 Fairlie St., N. W., Atlanta,

cent). Price—30 cents per share. Proceeds—To purchase
land

and

for

Cohon &

drilling

Underwriter

expenses.

Morris

—

Co., New York.

Ga.

Proceeds—To

petitive

retire

of

part

bank

loans

for

and

Underwriters—To be determined

bidding.

Probable

by

Underwriter—None.

new
com¬

bidders:

Morgan Stanley &
(jointly); Merrill Lynch,
Fenner & Beane, Kidder, Peabody & Co. and
Weld & Co. (jointly).
Bids—Tentatively ex¬

will

offer

the

shares

time

from

New

Pierce,

to

be

received

To

loans and for

be

determined

competitive

by

Bankers

bidding.

on

the

„

Shirks

Bids—Tentatively scheduled to be

re¬

Chemicals, Inc., Detroit, Mich.

(letter of notification) 91,851 shares of
Estimated

at

Jan.

15

(letter of notification) 1,000 shares of common
(no par). Price—At market (approximately $40.50
share). Proceeds — To Daniel Simonds, the selling

to

•

Underwriter—M.

Proceeds

•

(letter of notification) 200,000 shares of common
stock (par 10 cents). Price—$1.25
per share. Proceeds—
To repay loans and for
working capital. Underwriter—

survey

12

1
stock

shares

Dec.

each

Co.

2MT

shares

held

as

of

Feb.

share. Proceeds
Office

—

oil

To produce spot commercials for

North

Western

Ave., Los

Angeles,

1,

1973.

Proceeds—To

.




Dallas,

Dallas, Tex.

,■

common stock (par 50
Price—To be supplied by amendment. Proceeds
•—Together with other funds, to be used to build pipe¬
line.
Underwriters—White, Weld & Co. and Union Se-?
curities Corp., both of New York; Offering—Expected in

the

Spring of 1953.

/;v

...

19 filed 264,000 shares of common stock (no
par)
being offered for subscription by common stockholders^
of record Jan. 22, on a 1-for-15
Feb. 9.
Price—$34 per share.
about

hela

$5,000,000 additional
Power

be

determined

Co.

for

and

basis; rights to expire

on

Proceeds—To

common

general

purchase^
stock of Mononga-

corporate

purposes.

Underwriters—Carl M. Loeb, Rhoades & Co. won award
of this issue on Jan. 21.

it Western Electric Co., Inc.
Jan. 28 (letter of notification) 2,007.8 shares of common
stock
(no
par),
being
offered for
subscription
by
minority common stockholders of record Feb. 4 at rate
of

one

expire
the

share for each 10 shares held; rights to
Feb. 27. American Telephone & Telegraph Co.,

new

on

parent,

shares.
and

will

subscribe

Price—$40

for

share.

per

additional

1,047,992.2

Proceeds—For

expansion

an

general corporate purposes.

Office—195 Broadway/

7, N. Y. Underwriter—None.

Western Empire Oil Co., Denver, Colo.
M "
Jan. 6 (letter of notification) 35,520 shares of common
stock. Price—At par (10 cents per share). Proceeds—To

for options.

Office

—

222 Patterson Bldg., Denver,

Underwriter—None.

Westshore Hospital,

Inc., Tampa, Fla.
(letter of notification) 30,000 shares of common
stock (of which 1.250 shares will be issued to Dr. Samuel
3

Hibbs

G.

John

and

Price—At par
and

($10

equipment

Fla.

R.

Himes

for

services

rendered).

Proceeds—For property
Office—349 Plant Ave., Tampa,

share).

per

expenses.

Underwriter—Louis C. McClure & Co., Tampa, Fla.

by

•

.

stock

(par five cents)/Priee—25 cents

ceeds

—

For

oil

and

gas

per

share. Pro¬

leases. Underwriter

Hughes & Co., Denver, Colo.

—

R.

L»

-

York-Hoover Corp., York, Pa.
Jan.

16

(letter of notification)

12,490 shares of common

stock

(par $10). Price—$8 per share. Proceeds—To pine
selling stockholders. Uiiderwriters-^-Butcher, & Sherrerd
and Stroud &

Co., Inc., both of Philadelphia, «Pas

/bj

•

Underwriter—To be named

Office—Houston

by amendment. -Of¬

'

may

be with¬

'

it Alabama Power Co. (5/12) V;
....
Jan/28 it was reported company plans issuance and sale
(

of

Texas Oil Exploration Cou, Ft. Worth,Tex.
Dec.

5

(letter of notification)

1,200,000

(2/16)
shares of com¬

stock (par 10 cents). Price—25 cents per share. Pro¬
ceeds—To drill oil and gas wells and for

$18,000,000 first mortgage bonds due 1983. Proceeds-^
For construction program.
Underwriters—To- be deter¬
mined
sey,

by competitive bidding. Probable bidders: Hal-*
Stuart & Co. Inc.; Blyth & Co., Inc., and Kidder,

acquisition oi
properties. Underwriter—Peter W. Spiess Co., New York

Peabody & Co. (jointly); Morgan Stanley & Co.; Kuhn,

Texas Western Oil Co.,
Houston, Tex.
Nov. 12 (letter of notification) 100,000 shares of coraraot
stock (par 10 cents). Price—50 cents

&

Manufacturing Co.
Sept. 25 filed 250,000 shares of common stock
(par $1)
.(later amended to 400,000 shares).
Price—$2 per share!
Proceeds—For machinery and equipment and new con¬
struction,
Business—Production of heavy duty power
.transmission chain, sprockets,
gears, etc. Office—Longview, Tex. Underwriter—Dallas
Rupe & Sons,
& McDowell,

West Coast Pipe Line Co.,
20 filed 1,125,000 shares of

Of¬

filed

drawn.

stock

Powers

.Texas; and Straus, Blosser

—

bonds

fering—Tentatively postponed. Statement

York

Underwriter—Morris Cohon

1,125,000 addi¬

Corp., both of New York.
fering—Expected in the Spring of 1953.
/

bank loans. Un¬
competitive, bidding.

repay

buy. property for oil prospecting.

Tex.

engage

business.

be supplied by amend¬

Co. and Union Securities

bidders:

To

and

gas

To

$55,-r
000,000 first mortgage bonds, to be used to build a 1,030
mile crude oil pipeline. Underwriters
White, Weld &

mon

Co., New York.

—

stock and private sale of

common

Wyoming National Gil Co., Inc., Denver, Colo.

Securities

4

Price

Proceeds—From sale of units and

tional shares of

Nov. 17 (letter of notification) 500,000 shares of common

rities

for

and

share of stock.

one

ment.

2,500,000 shares of common stock (par 50
cents). Price—To be supplied by amendment. Proceeds—

purchase
40,000 shares of capital stock (par
$1)
issuance.
Price—$10 per share for stock
and five cents for the
warrants.
Proceeds—To
warrants

reserved

Underwriter—None.

Pipe PJne Co., Dallas, Tex.
Nov. 20 filed $29,000,000 12-year 6% debentures due Dec.
15, 1964, and 580,000 shares of common stock (par 50
cents) to be offered in units of one $50 debenture and

Underwriter—None.

Jan.

June

,

common

—

1515

Halsey, Stuart & Co. Inc.; Stone &
Corp., and
White,
Weld & Co.
(jointly). Bids—Tentatively scheduled to be received up
to 11:30 a»m. (EST) on Feb. 9, at office of
Cahill, Gordon,
Zachry & Reindel, 63 Wall St., New York 5, N. Y.
Z Texas General' Production Co.

Underwriter—None.

of

—For general corporate
purposes.

New York

(par $1).
share. Proceeds—To qualify to do busi¬

Webster

Peruvian Oil Concessions
Co., Inc., Dover, Del.
Jan. 16 filed 9,000,000 shares of common
stock (par $1).
IPrice—$1.10 per share. Proceeds—For general
corporate
purposes. Business—Plans' to produce and sell
petroleum
and its products from lands, to be
held, under concession
from the Peruvian Government.

shares

Underwriter—

program.

1,000,000 shares of capital stock

Probable

per share). Of¬
fice—c/o Nevada Agency & Trust
Co., Inc., Cheney Bldg.
139 N. Virginia
St., Reno, Nev.
/
; ?.
•
/

40,000

stock (no par) to be offered for
subscription by em¬
ployees. Price—Approximately $26 per share. Proceeds

Dec.

due

subleased land and for other
corporate purposes. Un¬
derwriter—None, with sales to be made on a commission
basis (selling commission is two cents

filed

construction

Tennessee Gas Transmission Co. (2/9)
Jan. 16 filed $30,000,000 first mortgage pipeline

on

26

(with an oversubscription privilege);
Feb. 17. Price — $21.50 per share.

per

derwriters—To

Jan.

and

★ Washington Water Power Co., Spokane, Wash.
Jan. 23 (letter of
notification) 11,500 shares of common

Colo.

Calif.

4;

Paradise Valley Oil Co.,
Reno, Nev.
Aug. 20 filed 3,000,000 shares of capital stock. Price—
At par (10 cents per
share). Proceeds—To drill six wells

Phoenix-Campbell Corp., New

Co.

Manufacturing Co., Pittsburgh, Pa.
(letter of notification) 3,000 shares of common
(par 50 cents). Price—At market (about $8 per
share.). Proceeds
To Wenman A. Hicks, the selling
stockholder. Underwriter
None, sales to be handled
through stockholder's brokers.

pay

per

per share. Proceeds—
construction and working capital. Underwriters
—Kuhn, Loeb & Co. and Carl M. Loeb, Rhoades & Co.,
both of New York.

-

share for each

new

in

TV.

new

.

&

26

it Telepix Corp., Los Angeles, Calif.
Jan. 27 (letter of notification) 640 shares of preferred
stock (par $10) and 300 shares of common stock (par
$5). Price—For preferred, at par; and for common, $12.50

rights to expire Feb. 18. Price—$7

.For

Pont

both of New York.

stock

Arizona.
Underwriter—None.
Offering to be
initially to persent and future policyholders of
company and to certain specified officers and directors

being offered for subscription by stockholders at rate of
for

Undewriter—Francis I. du

Vitro

Jan.

made

Dec. 24 filed 499.325 shares of
capital stock (par 70 cents)

share

one

Insurance Co., Phoenix, Ariz.

22 filed

ness

new

—

on

For

—

Price—$1.50

Paley Manufacturing Corp., Brooklyn, N. Y.
Jan. 16 (letter of notification)
99,000 shares of common
stock (par 25 cents).
Price—$3 per share. Proceeds—
For expansion and working capital. Underwriter—G. K.
Shields & Co., New York.

one

held,

Underwriter

program.

2 at the rate of

held

Sun Fire

per share. Proceeds—To make
of land. Business—Oil and gas explor¬

American Sulphur

shares

Dillon, Read & Co. Inc., New York.
(par 10

cents

.

Pan

construction

rights to expire

ation. Underwriter—None.

•

seven

Southwestern Public Service Co.

Proceeds

Overland Oil, Inc., Denver, Colo.
Dec. 23 filed 300,000 shares of common

geological

For

—

of record Feb.

Otis, Inc., New York.

Price—20

share for each

13 filed 293,462 shares of common stock (par $1)
being offered for subscription by common stockholders

Dec. 28

cents).

new

Jan.

Nyal Co., Detroit, Mich.

&

one

Kidder, Peabody & Co., New York.

S.

Gerber, Inc., New York.

Gearhart

stockholder.

Tucker Anthony & Co.,

Dec.

(2/18)

with additional subscription privileges (including sub¬
scription privileges for holders of less than seven shares
of outstanding common stock subject to
allotment; rights
to expire on March 4. Price—To be filed by amendment.

subscription warrants for

producing wells.

Co., Pittsburgh, Pa.
(letter of notification) 3,000 shares of common
(par 50 cents). Price—At market (about $8 per
share). Proceeds—To Wildey C. Rickerson, the selling
22

stock

West Penn Electric Co.

South Carolina Electric & Gas Co.

18 at rate of

Proceeds—For drilling of additional wells

purchase

Underwriter—Townsend, Dabney & Tyson,

Jan. 28 filed 358,045 shares of common stock (par $4.50)
to be offered to common stockholders of record Feb.

400,000 shares are to be offered in units of 100 shares
subscription warrants for 40 shares. Price—
and

Vitro Manufacturing

Jan.

Boston, Mass.

of stock and

$52 per unit.

Underwrite*

Underwriters, Inc., Phoenix, Ariz.

cents).

Saw & Steel Co., Fitchburg, Mass.

stockholder.

common

$3.25 per share.

Northland Oils Ltd., Canada
Nov. 21 filed 1,000,000 shares of
capital stock (par 20
cents—Canadian) and subscription warrants for 600,000
and

surplus.- Office—7 Weldon, Phoenix, Ariz.

Underwriter—Alex. Brown & Sons, Bal¬

stock

/"

Proceeds—To discharge bank loan/ Underwriter—Brew
Emch Jenkins Co., Milwaukee, Wis.

shares, of which the stock

participating unit.

Nov.

Simonds

★ North Central Airlines, Inc., Minneapolis, Minn.
—

Office—Manheim Pike,

timore, Md.

per

Price

(Del.)

common

Underwriter—Smith, Hague & Co., Detroit, Mich.

(par $1).

Express Corp.

Proceeds—P'or working capital.

(letter of notification) 34,800 shares of

Jan. 28

Motor

Jan. 8 (letter of notification) 20,000 shares of 6% cumu¬
lative preferred stock.
Price—At par ($10 per share).

stock. Price—At par ($5 per share). Proceeds—To liquid
date notes. Office—8129 Lyndon
Ave., Detroit 21, Mich.'

stock

Bond

Lancaster, Pa.

Nielco

the over-the-counter

in

or

Probable

Halsey, Stuart & Co. Inc.; Morgan Stanley &
Co.; Kuhn, Loeb & Co.; Kidder, Peabody & Co.; The

Nov. 19

Exchange

Co., Smart, Clowes & Oswald, Inc., and
Wagner, Reid & Ebinger, Inc., all of Louisville, Ky,

Underwriters—

bidders:

►First Boston Corp.
ceived on Feb. 18.

Curb

Seymour Water Co., Seymour, Ind.

construction.

new

York

Jan. 12 (letter of notification) 5,000 shares of 6% cumu¬
lative preferred stock
(par $25).
Price — $26.50 per
share.
Proceeds—For improvements.
Underwriters—

(2/18)

Jan. 23 filed $25,000,000 of general mortgage bonds due
February, 1983. Proceeds—To repay, in part, $40,000,000
of bank

and one

Proceeds—To increase capital and

West Coast

16.

Feb.

on

Niagara Mohawk Power Co.

,

either

time

to

market. Underwriter—None.

pected

unit.

per

—

Sapphire Petroleums Ltd., Toronto, Canada
Oct. 28 filed 50,000 shares of common stock (par $1—
Canadian). Price—To be supplied by amendment. Pro¬
ceeds—To
Ken Kelman, the selling stockholder, who

Co. and The First Boston Corp.

White,

be sold in units of 30 shares

—

Niagara Mohawk Fower Co. (2/16)
Jan. 23 filed 1,000,000 shares of common stock (no par).
construction.

2

Dec. 31 (letter of notification) $150,000 of

repayment of bank loans.

Thursday, February 5, 1953

Security Life, Phoenix, Ariz.
(letter of notification) 75,000 shares of class A
common stock (par $1)
and 2,500 participating units to
Dec.

fibres.

it New England Power Co. (3/3)
filed £0,140 shares of new cumulative preferred
for subscription by present

Feb. 4

.

United

Jan. 23

stock (par $100) to be offered

amendment.

-

.

.

per

share. Proceed*

—For working capital. Office—1 Main
St., Houston. Tex
-Underwriter
Scott, Khoury & Co., Inc., New York*
—

<

Offering—Expected in

a

week

or

two.

•

United Petroleum & Mining Corp.,
Bismarck, N. D.
Nov. 17- (letter of notification) 150,000 shares of class A
voting stock and 150,00 shares of 4% class R non-voting
stock.
Price—$i per share. Proceeds—To

purchase oil

and gas leases.

Office-i-222 Main Street, Bismarcki N: D
G< Kinnard & Co,, Minneapolis, Minn'

Chicago,-III .»> >UnderwrIter-^John

Loeb & Co.;
&

Co.

man

10.

Corp.
and

Union Securities Corp. and Equitable Secu¬
(jointly); The First Boston Corp.; Shields
Salomon Bros. & Hutzler (jointly); Harri-

Ripley & Co., Inc.

Bids—Tentatively

Registration—Planned for April
at 11 a.m. (EST) on

expected

V

May 12.

^ Allied Chemical & Dye Corp.*.
..." •<
Feb. 4 company announced that company plans to sell

"publicly
of

not in excess of $200,000,000 principal amount
long-term sinking fund debentures through an un¬

derwriting group. Proceeds—-Tebe used for expansion,
'working capital and other corporate purposes. JUnder*
dirriiFtJ

M^rcfDn

Stft nlPV

A

NfiW York,.

1*

_

-

Number 5192

Volume 177

.

.

The Commercial and Financial Chronicle

.

Charter Oil

Aluminium Ltd.

Nov.

additional financing will

Oct. 15 directors expected that

sell

be undertaken in 1953 to meet the major part of the in¬

the estimated

in

crease

First

The

acted

Boston

Corp.,

900,000 additional shares of

shares;
Not

San Francisco, Calif.
announced company plans to sell publicly

was

sell privately
shares

tional

finance

of

construction

1953

Proceeds—To
Underwriters—For

Dec.

Jan.
of

it

15

Light Co.

reported

was

issue and sell

may

Probable bidders: Halsey, Stuart &

ity

about

it

to $1,000,000
Proceeds—For working capital.

$800,000
stock.

"common

•

(EST)

to noon

up

Manhattan

Bank of the

•Feb.

on

per

capital and surplus.

Company has sought SEC author¬
an aggregate of $25,000,000.

banks

announced

was

that

company

proposes

to

Street, Chicago, 111. Underwriter—None.

Dec.

Power &

it

15

Light Co.

(3/24)

reported company

Company

share.

was

1953, about

ceived

March 24.

on

'

*

"

P**

Big Horn-Powder River Corp., Denver, Colo.
13 directors authorized an offering of 565,220 ad¬

Jan.

of

shares

basis

on

of

Price—To

capital

new

one

for

first

to

<

'

>

■

stockholders

nine shares

each

Proceeds—For

later.

named

be

stock

share

Underwriter—None.

penses.

drilling

,

.

held.

.

.

ex¬

Jan.

it

23

California

Jan. 29 it

was

Electric Power Co.

issue and
sell 23,698 additional shares of capital stock (par $25) to
its stockholders on a l-for-5 basis, subject to their ap¬
proval on Feb. 25. Proceeds—To repay short-term bor¬
rowings.

(3/31)

Jan.

announced company plans to issue and sell

Probable bidders: Blyth & Co., Inc.; Kidder,
Peabody & Co.; Merrill Lynch, Pierce, Fenner & Beane
and Dean Witter & Co. (jointly); Union Securities Corp.
bidding.

J.

A.

Hogle

&

Co.

scheduled to be received
•

(jointly).

29

it

was

announced

—

Tentatively

March 31.

on

California Electric Power Co.

Jan.

Bids

—To pay

writers

proposes

the

sale

short-term notes and for

new

construction.

ers—To be determined by competitive

Underwrit¬

bidding. Probable

bidders—Halsey, Stuart & Co. Inc.; Coffin & Burr, Inc.
and

The
First Boston
Corp. (jointly); Blyth & Co..
Inc. and Kidder, Peabody & Co. (jointly); Merrill Lynch.
Pierce, /Fenner & Beane and
Co
White, Weld &

(jointly); Harriman Ripley & Co., Inc.; Salomon Bros
&

Hutzler.

Bids—Tentatively
March 10;
*' '»

on

Jan.

2

.

it

was

reported

expected

to

be

plans

sale

later

this

after distribution by New England Public Service Co. of
its holdings of Central Maine Power Co. common stock.
Probable bidders: Blyth & Co., Inc. and

Kidder, Peabody

(jointly);, Coffin & Burr, Inc.; A. C. Allyn & Co.;

Inc. and Bear, Stearns & Co.
&

new

construction.

Under¬

determined

be

To

&

—

Co.; Harriman Ripley & Co., Inc.; Lehman Brothers;
First Boston Corp.; Merrill Lynch, Pierce, Fenner

&

& Co.; White, Weld & Co. Bids —
Registration—Tentatively planned for

Shields

Beane;

Expected April 7.

1,1

(jointly); Harriman Ripley

Co., Inc.

16, M. A. Follansbee, President, said the company
plans additional equity financing, totaling about $4,500,000.
This may be done through a rights offering to
stockholders. Proceeds—Together with funds from pro¬
posed $29,500,000 RFC loan, would be used for expansion

Underwriters—May include Cohu & Co., New
York. Offering—Expected in February.

program.

stockholders

voted

to

500,000 shares of authorized

approve

a

new

Blyth

&

Co.,

6% cumulative convertible

holders of 5%

preferred stock (par $100) and of 5%

(par $20); thereafter to holders of 5%
preferred stock, series A, (par $10); and any unsub¬
scribed shares to public. Proceeds—To redeem $10 par
5% preferred stock (61,881 shares outstanding at Nov.
preferred stock

and for working capital. Price—$11 per share.

30, 1952)

Underwriter—G. H. Walker &

expected

to

be received

by

this company

on

provided internally

financed

the

by

to sell around

leaving about $65,000,000 to be

sale of securities.

Subsidiaries expect

$49,000,000 of bonds, debentures and pre¬

ferred stocks and GPU will furnish about $16,000,000 to
them. GPU expects
sale

of

to obtain the funds from bank loans,

debentures,

well

into

of

these.

the sale of common stock or a

next year,

If

present

conditions

continue

GPU would expect to offer addi¬

trust, certificates.

rowing. Merrill Lynch, Pierce, Fenner & Beane acted as

Probable

bidders:




*

Halsey, Stuart &
■

•<

11

Bids—Tentatively
(EST)

a.m.

on

ex¬

March 24.

(6/9)

was

construction

Underwriters—To

program.

be

de¬

by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Kuhn, Lceb & Co.; The First
Boston Corp.; Kidder, Peabody & Co. and
White, Weld
&
Co..(jointly); Merrill Lynch, Pierce, Fenner & Beane,
Salomon Bros. & Hutzler and Drexel & Co.
(jointly);
Union Securities Corp.; Equitable Securities
Corp. Regis¬
tration—Planned for May 8. Bids—Tentatively

expected

11

(EST)

a.m.

Gulf

States

16,

it

Co.

announced

was

$6,000,000 in

June 9.

on

Utilities

;

company

is planning to sell

stock in June and

common

certain amount

a

of first mortgage bonds later in the
year. Proceeds—For
construction program, expected to cost between
$26,000,000 and $28,000,000 this year. The exact amount of
the
bond offering has not yet been determined.
Under¬

writers—For
itive

stock to be determined by
compet¬

common

bidding.

Probable bidders:

Fenner & Beane and
& Webster Securities

Bids will

be

Merrill

Lehman Brothers

Lynch,, Pierce,
(jointly); Stone

Corp.; Carl M. Loeb, Rhoades & Co.

received

(2/19)
to

up

i

-

(CST) on Feb. 19 at
Place, Chicago 5, 111.,
$4,500,000 equipment trust

noon

the company's office, 135 East 11th
for tire purchase from it of

certificates,

series 37 to be dated March 1, 1953, /and
mature in 30 semi-annual instalments. Probable bid¬
ders: ' Halsey,
Stuart & Co. Inc.; Salomon Bros. " &
Hutzler.
' A j
to

.

.

Indianapolis Power & Light Co.
; '•*
Jan. 22 company sought
authority of Indiana P. S. Com¬
mission to issue and sell
$10,000,000 of first mortgage
due

1983.

Proceeds—For

construction

program.

Underwriters—To be determined by competitive
bidding.
Probable bidders: Halsey, Stuart & Co.

Inc.; Blyth &
Co., Inc.; Union Securities Corp.; W. C. Langley & Co.*
White, Weld & Co. and Shields & Co. (jointly); Lehman
Brothers, Goldman, Sachs & Co. and The First Boston
Corp. (jointly); Hemphill, Noyes & Co. and .Drexel &
Co. (jointly); Equitable Securities Corp.
1
;
.

it international-Great Northern RR.
Bids will

St.

received

be

Louis, Mo.,

the

up

to

(2/5)

'

by the trustee of the company in.

(CST) for the purchase from

noon

of: $3,000,000 equipment trust certificates,
series EE, to be dated Feb. 20, 1953, and to mature $300,000 each Feb. 20 from 1954 to 1958, inclusive, and $150,000
company

each Feb. 20 from
ders:

1959 to

1968, inclusive. Probable bid¬

Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutz-* '

Jersey Central Power & Light Co.
15 it was reported company plans to issue and sell

Dec.

$9,000,000 of first mortgage bonds due 1983. Underwrit¬
ers—To be determined by competitive bidding. Probabla
Halsey, Stuart & Co. Inc.; White, Weld & C*-

bidders:

& Co.

and Shields

{jointly); Equitable Securities Corp.;

The First Boston Corp.;

Salomon Bros & Hutzler; Gloje*

Forgan & Co.; Kidder, Peabody & Co.; Harriman Ripley

Offering^-Probably in April, 1953.

Co., Inc.

shares

to

stockholders rather than resort to bor¬

clearing agent in last stock offer.-

^

>

Long Island Lighting Co.
it

Dec.

15

bank

credit

Dec.

1,

was

in

announced

the

amount

company

of

has

established

m

$40,300,000 extending toi

1953, to be refinanced by the issuance of new
Underwriters—(1) For common stock, prob¬

securities.

Blyth & Co., Inc. and The First Boston CorpL
(jointly). (2) For preferred stock, may be W. C; Lang-

ably

ley & Co. (3) For bonds, to be determined by competi¬
tive

bidding.
Probable bidders: Halsey, Stuart & Col
Blyth & Co., Inc. and The First Boston CorpL
(jointly); W. C. Langley & Co.; Smith, Barney & Co. 4

Inc.;

■5

Louisiana
15

Power &

Light Co.

it$was announced company may issue and sell

mid-year about $10,000,000 of first mortgage bond*.
Undervvriters—To be determined by competitive biddingin

Kuhn, Loeb
(jointly); Blyth & Co., Inc.;

Probable bidders: Halsey, Stuart & Co. Inc.;
& Co. and Lehman Brothers

be

tional

Inc.; Salomon Bros. & Hutzlerj

at

termined

Dec.

15, A. F. Tegen, President, announced that its do¬
mestic subsidiaries may spend around $80,000,000 for
new construction in 1953.
Of this total, $15,000,000 will

March 2 for the purchase from it of $2,460,000
equipment

(Co.

Brothers.

received

reported company plans issuance and sale
of $7,000,000 of first
mortgage bonds due 1983. Proceeds

Co., St. Louis, Mo.

Nov.

combination

(3/2)

Lehman

be

Jan. .28 it

White, Weld
mon

Bros.

& Co.

and

Shields & Co.

(jointly); Salo*-

Hutzler; W. C. Langley & Co., The First

&

Boston

Corp., and Glore, Forgan & Co. (jointly); Merrill
Lynch, Pierce, Fenner & Beane and Kidder, Peabody &
Co. (jointly); Harriman Ripley & Co., Inc.
'
•

Maine Central

Jan.

are

Inc.;
to

it Gulf Power Co.

issue of

preferred stock (par $10). These are to be first offered
for subscription by common stockholders on the basis of
about one-third share for each common share held; then
to

"

(3/24)

was reported
company plans issuance and sale
of 100,000 shares of preferred stock
(no par). Proceeds—
For construction program.
Underwriters—To be deter¬
mined by competitive bidding. Probable bidders:

&
14

March 24.

on

ler; R. W. Pressprich & Co.

Dec.

the

it Central RR. of New Jersey
Bids

(EST)

a.m.

Jan. 28 it

Steel Corp.

General Public Utilities Corp.

company

of $10,000,000 common stock (in addition to $10,000,000 of first and general mortgage bonds, see above)

& Co.

bank loans and for

Proceeds

received

year
'

at

it Georgia Power Go.

General Contract Corp.

Feb.'2 company sought SEC authority to issue and sell
$10,000,000 of first and general mortgage bonds, series
U, due March 1, 1983. Proceeds—To refund outstanding

■,

(4/7)

The

April 7.

Jt Central Maine Power Co.

;

Light Co.

reported company plans to issue and sell

by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Kuhn, Loeb

Jan.

.

&

Power

was

Follansbee

$8,000,000 of first mortgage bonds. Proceeds—To re¬
pay bank loans and for new construction. Underwriters
—To be determined by competitive bidding.
Probable
bidders:
Halsey, Stuart & Co. Inc.; Salomon Bros. &
Hutzler; Merrill Lynch, Pierce, Fenner & Beane and
Dean Witter & Co. (jointly); Kidder, Peabody & Co.;
Blyth & Co., Inc. Bids—Tentatively scheduled to be re¬
on

it

7

March 2.

of

ceived

plans to

$15,000,000 of first mortgage bonds due 1983.

(4/7)

company

company

;

approximately 136,000 shares of common stock (par $1).
Proceeds—To repay bank loans and for new construc¬
tion.
Underwriters—To be determined by competitive

and

announced

was

Florida
•

Bros. & Hutzler (jointly); Morgan
Stanley &c
Co.; Harriman Ripley & Co. Inc. Registration—Planned
for Feb. 20.
Bids—Tentatively expected to be received

bonds

Fitchburg Gas & Electric Co.

ditional

Salomon

it Illinois Central RR.

may issue and sell in
$9,000,000 of first mortgage bonds
Proceeds—For construction program.
Underwriters—To
be determined by competitive bidding.
Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler;
The First Boston Corp.; Lehman Brothers; Kidder, Pea¬
body & Co.; Equitable Securities Corp.; Union Securitiei
Corp.; Harriman Ripley & Co., Inc. Registration—Ex¬
pected Feb. 16.' Bids—Tentatively scheduled to be re¬

March,

Corp., New York.
•

Brothers; Kuhn, Loeb & Co.,
Kidder, Peabody & Co. (jointly);
The
First Boston Corp.; Union Securities
Corp. and
Equitable Securities Corp. (jointly); Shields & Co. and
Blyth & Co., Inc. and

—For

Corp., Chicago, III.

it

Dallas

Proceeds—To increase
Underwriter — The First Boston

Price—$31

*

22

Halsey.

Stuart & Co. Inc.; Lehman

Jan.

Madison

offered stockholders 250,000 additional
shares of capital stock
(par $10) at rate of one new
share for each 10 shares held Jan. 30; rights to expire on
17.

Underwriter—Hay-

on or about Jan. 26, 1953, a total of
23,640 additional shares of common stock on a share-forshare basis; rights to expire Feb. 9. Price—At par ($2
per share). Proceeds—For investment. Office—105 West

2 company

Feb.

Price—Ex¬

offer to stockholders

(2/9)

& Ohio RR.

received

be

1983.
Proceeds—
construction program.
Underwriters—To be deter¬
mined by competitive bidding. Probable bidders:

For

at

Nov.

Feb. 9 at
company's office, 2 Wall St., New York City, for the
purchase from it of $3,000,000 equipment trust certifi¬
cates, series FF, to be dated Dec. 1, 1952 and due in 15
installments of $200,000 each on Dec. 1, from 1953 to
4967, inclusive. Probable bidders: Halsey, Stuart & Co.
Inc,; Salomon Bros. & Hutzler; Kidder, Peabody & Co.
will

share.

per

stock.

Proceeds—To repay bank loans and for

borrow from

to

Culver

Under¬

both of New York.

Bids

$10

(3/24)

reported company plans issuance and sale

was

Registration—Scheduled for Feb. 20.

common

(jointly); Morgan Stanley & Co. For debentures,
Halsey. Stuart & Co. Inc.; Morgan Stanley & Co.

writers—May be Riter & Co.; Hemphill, Noyes & Co.,
Baltimore

be around

of

41

$16,000,000 first mortgage bonds due

& Co.

1953 may sell
convertible preferred or

reported company late in

was

shares

500,000

Underwriters—To be determined by competitive bidding

Baker-Raulang Co.
12

of

Probable bidders: For stock, Merrill Lynch, Pierce, Fen¬
ner
& Beane, White, Weld & Co. and R. W. Presspricb

public Co. (jointly).

Jan.

Corp.

reported company plans issuance and sale

was

construction program.

Securities Corp. and Centrai Re¬

Equitable

determined

Productions

Spring of 1953.

Corp. (jointly); The First Boston Corp.; White
.Weld & Co. and Merrill Lynch, Pierce, Fenner & Beane
rities

(jointly);

—

Columbia Gas System, Inc., N. Y.
Oct. 10 it was announced company plans to issue and sell
common
stock and additional debentures early in the

Inc.; Lehman Brothers and Stone & Webster Secu¬

Co.

Offering

den, Stone & Co., New York.

probably in June, 1953, about $15,000,000 of first mort¬
gage bonds.
Proceeds—To repay bank loans and for
new
construction.
Underwriters—To be determined by
competitive bidding.

it

9

about

pected to

company

be

To

—

Cinerama

(jointly).
Arkansas Power &

Canada.

Jan. 28 it

pected

The First Boston Corp. and Blyth & Co., Inc.

common,

in

share).

per

by competitive bidding
Probable bidders: Halsey, Stuart & Co., Inc.;
Kidder,
Peabody & Co.; The First Boston Corp.; Merrill Lynch,
Pierce, Fenner & Beane.

and sell 378,000 addi¬

program.

offered

be

to

$1.70

expected until the end of January or early Febru¬

writers

(par $5).

stock

common

balance

(around

trust bonds to be secured by
$9,000,000 first
mortgage bonds held in the treasury. Proceeds—To pay
off $3,000,000 of notes and for working capital. Under¬

$14,500,000 of first mortgage bonds and

half of March to issue

in the first

later

named

collateral

Jan. 27 it was reported the company in February plans
to

be

Jan.

(3/9-13)

Co.

Public Service

(no par).

Chicago Great Western Ry.
9 \villiam N. Deramus, 3rd, President, stated thai
the company is planning issuance and sale of
$6,000,000

Price
.—Expected at about $31.25 per share. Proceeds—To in¬
crease capital and surplus.
Underwriter—Blyth & Co.,
Inc., New York and San Francisco.
Arizona

stock

ary.

31,294 additional shares of capital stock (par $10).

•

common

Ames & Co., Ltd.,

it American Trust Co.,
Jan. 26 it

it Georgia Power Co.

Proceeds—For expansion program.
Underwriters—Leh¬
man
Brothers and Bear, Stearns & Co. for about
800,000

in Oct. 1951.

ers

Co., Ltd.
reported that company plans tmoffer and

was

Price—To

E.

A.

and

18, it

expansion program

of the

cost

dealer-managers in stock offering to stockhold¬

as

(617)

8

it

was

$17,000,000

RR.

reported

of first

(2/25)

1983. Proceeds—For refunding.

termined by
sey,

Stuart

may sell an issue of
and collateral bonds due

company

mortgage

Underwriters—To be de¬

competitive bidding. Probable bidders. Hal¬
& Co.

In^ Kidder Peabody & Co.; W. C.
Continued

on.pageAZ

42

The Commercial and Financial Chronicle

(618)

Continued from page

Dec. 22 company announced it

Langley & Co.; Coffin & Burr, Inc.; The First Boston

Corp.; Merrill Lynch, Pierce, Fenner & Beane; Blyth &
Inc.; Glore, Forgan & Co. Bids—Expected to be re¬

to.,

ceived

Feb.

on

25.

Maryland Casualty Co., Baltimore, Md. (2/25)
Jan. 8 it was announced the company plans to issue and

stock (par $1), rights
going first to common stockholders of record Feb. 21
(probably on a one-for-two basis). Underwriters—May
include Merrill Lynch, Pierce, Fenner & Beane; The
First Boston Corp.; Lehman Brothers; and Paine, Web¬
sell about 400,000 shares common

ber, Jackson & Curtis. Offering—Expected to be made
about Feb. 25 or 26; with rights expiring about March

Jan.

announced that
primary rights would be issued to common stockholders
of record March 27,
1953, to subscribe to additional
stock

shares held
will

expire

on

basis of

new

one

share for each five

(with an oversubscription privilege); rights
April 14. There are presently outstanding

on

($12.50 par) common shares,
reserved for scrip.
Proceeds' — For
550,282

including

shares

reported company plans to issue and sell

was

May about $9,000,000 of first mortgage bonds due 1983

Underwriters—To be determined by competitive bidding
Probable bidders:
&

Halsey, Stuart & Co. Inc.; Kuhn, Loeb
Bros. &
Hutzler (jointly); White.

Salomon

and

Co.

&

Weld

Co.; The First Boston Corp.; Kidder, Peabody
& Co. and Drexel & Co. (jointly); Harriman Ripley &

Co., Inc. and Union Securities Corp. (jointly).
was

Proceeds—To

$15,000,000 of additional common stock.
bank loans, etc. Underwriters—To
comoetitive bidding. Probable bidders:

repay

be determined by

Blyth & Co. Inc.; Kidder, Peabody & Co. and Merrill
Lyncn, Pierce, Fenner & Beane (jointly); Lehman Bro¬
thers; The First Boston Corp.; Union Securities Corp.
and Equitable Securities Corp. (jointly).

Mississippi Power & Light Co.
Dec.

15 it

March

(3/17)

reported company may issue and sell In

was

about

$12,000,000 of

first

mortgage

bonds

Underwriter^—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
White, Weld & Co. and Kidder, Peabody & Co. (jointly):
Merrill Lynch, Pierce, Fenner & Beane; Union Securities
Corp.; The First Boston Corp. and W. C. Langley & Co
(jointly). Bids — Tentatively expected on March 17.
Registration—Expected Feb. 11.

Monongahela Power Co.
Dec.

it

11

announced

was

plans issuance and

Probable bidders:

Halsey, Stuart & Co. Inc.;
W. C. Langley & Co. and the First Boston Corpr (joint¬
ly); Kuhn, Loeb & Co.; Kidder, Peabody & Co.; Glore,
Forgan & Co.; Lehman Brothers; Equitable Securities

Corp.;

Union Securities Corp. and Salomon Bros.
Hutzler
(jointly); Merrill Lynch, Pierce, Fenner
Beane; Harriman Ripley & Co., Inc.
Narragansett Electric Co.

&

&

(3/1©)

Jan. 29 it

was announced
company has been authorized
by Rhode Island P. U. Commission to issue and sell
$10,000,000 first mortgage bonds, series D. Proceeds—
To repay bank loans and for new construction. Under¬

writers

To

be

determined

by

competitive bidding.
Halsey, Stuart & Co. Inc.; Kuhn, Loeb
& Co. and Glore, Forgan & Co.
(jointly); Salomon Bros.
—

Probable bidders:

Hutzler; Kidder, Peabody & Co. and Stone

ster

Securities

Corp.

(jointly):

Lehman

&

Web¬

Brothers

New

England Electric System

Jan. 22
on

it

was

announced

stockholders

increasing authorized
11,500,000 shares and

common

on

Feb.

24

will

stock from 8,500,-

000 to
on a
provision to provide
in connection with preemptive
offerings to stockholders
that cash or full share rights
may be issued in lieu of
rights to fractional shares.

New Jersey Power &
Light Co.
Dec. 15 it was announced
company plans issue and sale
of about $4,000,000 first
mortgage bonds due 1983. Un¬
derwriters—To be determined
by competitive bidding
Probable bidders: Halsey, Stuart & Co.

Inc.; Salomon
Hutzler; Kidder, Peabody & Co. and White
(jointly); Smith, Barney & Co.; Union Se¬
curities Corp.; Carl M.
Loeb, Rhoades & Co. Offering—
Probably in May.
Bros.

&

Weld & Co.

New Orleans Public Service Inc.
Dec.

15

it

was

(4/14)

reported company plans to sell
first mortgage bonds due 1983

$10,000,000

of

ceeds—For

Dec.

was

reported

29

filed

company

a

Mexico

Colorado

and

to

market

stockholders.

the

in

areas

in

will

1953

borrow

ing of bonds
for

bidders

and

additional

bonds:

$125,000,000

some

banks to be refinanced later in year,

stock.

Jan.

27

it

Jan. 28 it

issued

payment

upon

record

Feb. 9

named

later.

ditions

to

of

plans to

stockholders

share for each five shares held
be

to

one

property.

& Co.,

its

iaries.

for each

about

17

April 15

on

a

—

on

on

Proceeds—To increase investments in subsidy
be determined by competitive
Probable bidders: Blyth & Co., Inc.; Equitable

Corp.; First Boston Corp.; Halsey, Stuartl &
Inc.; Harriman, Ripley & Co. Inc.; Kidder, Peabody &
Co.; Kuhn, Loeb & Co.; Lehman Brothers; Merrill Lynch;
Pierce, Fenner & Beane; Morgan Stanley & Co., and
Union Securities Corp.
received

at

11

Bids—Tentatively expected to be
(EST) on April 15. Registration—;

-a.m.

Planned for March 13/

Jan. 30 it

C

-

.

(3/25)

announced company has applied tp

was

Indiand
authority to issue 114,167 additional
shares of its common stock (no par), to be offered first

for

P. S. Commission for

to

one

stockholders of record March

common

of

of

new

share for each six shares

25,on the basis

heldf rights to. ex-/

Price—To be supplied by amendment.program, a" Underwriter —4
Smith, Barney & Co. handled the last common stock of¬
fering in January, 1949.
T '
< "
"•
pire

on

April 10.

Proceeds

May be

Morgan
G. H. Walker

Coggeshall & Hicks and

one

held; rights to expire
to be named by company

Securities

20%

Underwriters

basis of

shares

Co.

additional

stockholders

offer

stockholders.'

Underwriters—To

bidding.

(including the shares to
common

to

proposes

common

(4/15)

Price—Expected

April 13.

thai
from

offer

beauty

was

share

May 7.

stock dividend).
Price—To be
Proceeds—For new construction and ad¬
a

company
to

★ Southern Indiana Gas & Electric Co.

company

common

stock

stockholders of record
new

Halsey, Stuart & Co. Inc.; Morgan

announced

leased

of

reported company plans offering of about
1,000,000 additional shares of common stock (par $5) to

Telephone Co.

was

subscription by its

announced

was

common

★ Southern Co.

shares.

common

Peninsular

Operators

—

15 on plan. Underwriters—
May be Morgan Stanley & Co. and Dominick & Dominick, both of New York.

Stanley & Co.; White, Weld & Co.; Lehman Brothers and
Union Securities Corp. (jointly).
Stock would be of¬
fered to stockholders, without underwriting.
American
Telephone & Telegraph Co., parent, owns 91.25% of
Pacific

Business

~

Stockholders will vote April

Probable

.

it

additional

probably by offer¬

common

16

Jan.

Pacific

Telephone & Telegraph Co.
Mark
R. Sullivan, President, announced

^

Underwriter—VanAlstyne, Noel & Co.; New York.
Smith (Alexander), Inc.

pipe line bonds and preferred and commor
stocks, and is expected to be completed by April, 195X
Underwriters—White, Weld & Co. and Kidder. Peabod?
& Co., both of New York, and Dominion Securities Corp.
Ltd., Toronto, Canada.

company

Co.

the

salons.

mortgage

17

that

.

Northwest., Estimated overall capital cost of the projeci
is $179,000,000.
Financing is expected to consist of firsi

Dec.

reported

was

★ Seligman & Latz, Inc., New York
J
Jan. 29 it was reported 268,500 shares of
common"stock'
are expected to be offered
publicly. Proceeds—To selling

substitute application

second

it

company plans some
common stock
financing in the near future. Under¬
writer—Blyth & Co., Inc., New York and San Francisco.-'

plans early registra¬

company

Diego Gas & Electric

29

new

& Co.

about
Pro¬

construction. Underwriters—To be de¬
termined by competitive
bidding. Probable bidder*
Halsey; Stuart & Co. Inc.; Lehman
Brothers; TCMdtr
Peabody & Co. and Stone & Webster Securities
Corp
(jointly); Equitable Securities Corp.; Union Securitiei
Corp.
Bids Tentatively scheduled to
be

April 14.

★ New York Central RR.
Feb. 3 it

received

(3/4)

was

reported company plans to issue and sell
bidding on March 4 an issue of $9,375,000
trust certificates due in

at competitive

equipment
instalments over a
period of 15 years. Probable bidders:
Halsey, Stuart &
Co. Inc.; Salomon Bros. & Hutzler.




★

Pennsylvania Electric Co.
15 it was reported company plans to issue and sell
in June about $9,250,000 first mortgage) bonds dueT98F
Dec.

—

For

construction

and

a

like amount later

Underwriters—To be determined by competir.
bidding. Probable bidders; Halsey, Stuart & Co

program.

to

tive

increase, capital

Inc.; Kuhn, Loeb & Co.; Kidder, Peabody Co.; The First
Boston Corp.; Equitable Securities Corp.

Stuart

&

Co.

Inc.; The

Corp.; Equitable Securities Corp.;
Smith, Barney & Co.

First

Dec.

was

White, Weld & Co.;

determined

by

preferred stock (par $100).

competitive

Lynch,

of

Co.

-

ex¬

stock,

Securities
Coi

Pierce, Fenner

& Beane

(jointly);
Bids

t

f;

•

reported

first

company

may

bonds.

mortgage

Probable bidders:

bidding.

Inc.; Kuhn, Loeb & Co., Blyth

Utilities Co.

Texas

Dec.

15

it

was

reported

Offer¬

'

~

that

following

completion of

proposed financing by Dallas Power & Light Co., Texas
Electric Service Co. and Texas Power & Light Co., sub-,

shares to raise about $4,000,000. Proceeds—To
repay bank
loans and for new construction. Under*
writers—To
be
determined by
competitive

-

Union

(jointly); White, Weld & Co.: Lehman Brothers.
ing—Tentatively expected in May.

issue and

Lovett, President, announced company

Hutzler;

Halsey, Stuart / &
& Co., Inc., Kidder,
Peabody & Co. and Merrill Lynch, Pierce, Fenner &
Beane
(jointly); The First Boston Corp.; Union Seciv
rities Corp.; Hemphill, Noyes & Co. and Drexel & Co;
petitive

approximately $5,000,000 of bonds in May or June;
1953, and in the latter part of 1953 to issue sufficient

pects to raise about $24,000,000 in* the next-two
years
through sale of bonds, and preferred and common

&

sell about $11,
Proceeds—For pewj
Underwriters—To be determined by com*

was

construction.

sell

Nov. 12, F. L.

it

000,000

latter part of March, 1953.
public stock financing in 1952 was
handled by Morgan Stanley & Co., Drexel & Co. and
Glore, Forgan & Co. (jointly).

working capital.

new
com¬

& Light Co.-

Power

Texas

stock during the

Rockland Light & Power Co.

by

uled for March 5.

Underwriters—Last

Ravenna Metal Products
Co., Seattle, Wash.
Jan. 27 it was reported
company plans to issue and sell
20,000 shares of class A stock.
Price—$15 per share.
Proceeds—For expansion and

Bros.

Salomon

Merrill

Dec.r 15

bidding.
Probable bidders: For bonds,
Halsey, Stuart & Co. Inc.;
The First Boston Corp. and Coffin &
Burr, Inc; (jointly);
Kidder, Peabody & Co.; White, Weld & Co.
For stock,
Kidder, Peabody & Co. and Blyth & Co., Inc. (jointly);
Harriman Ripley & Co. Inc.

Proceeds--For

—Expected on April 13. Registartion—Tentatively sched-

approximately $90,it contemplates selling 750.000 shares

Public Service Co. of New Hampshire
Nov. 3 it was announced company plans to

Tq

.

Hemphill, Noyes & Co. and Drexel & Co. (jointly).

Jan. 20, George H. Blake, President, announced that as a
first step in raising funds to carry forward the
company's
construction program
(to involve
common

.

Underwriters—To be determined

.

of

,

was

(jointly);

Public Service Electric & Gas Co.

in 1953)

—

Corp.; The First Boston Corp.; Kidder, Peabody &
and

bidding.
Probable bidders: Halsey, Stuart & Co. Inc.;
Kuhn, Loeb & Co. and Lehman Brothers (jointly); Mor¬
gan Stanley & Co. and Drexel & Co. (jointly); The First
Boston Corp.

000,000

share. Proceeds

petitive bidding. Probable bidders: (1) For stock, Kid¬
der, Peabody & Co. and Merrill Lynch, Pierce, Fenner
& Beane (jointly); Kuhn, Loeb & Co.; Union Securities
Corp.; Harriman Ripley & Co. Inc.; The First Boston
Corp. (2) For bonds, Halsey, Stuart & Co. Inc;; Kuhnj
Loeb & Co., Lehman Brothers and Blyth & Co., Inc;

Boston

reported company plans issuance and sale

be

per

.Underwriter —rvSaloroon

(4/13)o
f
reported company plans to issue and <'sell
first mortgage: bonds due 1983- and 80,000

15 it

construction.

$50,000,000 of first refunding mortgage bonds
Proceeds—To repay bank loans and for new construc¬
Underwriters—To

surplus.

and

Hutzler, New York.

$9,000,000

in May of

tion.

&

shares of

Public Service Electric & Gas Co.
Jan. 12 it

*

Texas Electric Service Co.

Pennsylvania Power & Light Co*
23, Charles E. Oakes, President, announced that
new financing
this year will require the sale of from
$20,000,000 to $25,000,000 of first mortgage bonds, ;with
total financing for the four-year period running about
$65,000,000. If sold competitively, probable bidders may
Halsey,

Price —,.$25

expire Feb,- 20.

Bros.

Jan.

include:

Albany, N. Y.

:101;725 addi->
tional shares of capital stock (par $10) on t)ie basis of
one new share for each three shares held Jan.: 29:
rights

Proceeds—For construction

on.

State Bank of

Feb. 2 the bank offered to its stockholders

common

new

on

San

.

with the FPC proposing to construct a 1,384-mile trans¬
mission line extending from the San Juan Basin in New

and

Goldman, Sachs & Co. (jointly); Union Securities Corp.;
The First Boston Corp.;
White, Weld & Co.; Blyth & Co..
Inc., and Harriman Ripley & Co. Inc. (jointly). Bids—
Tentatively expected to be received on March 10.

vote

shares of common stock outstanding).
construction. Underwriters—May be
competitive bidding. Probable bidders:

new

by

near

bidding.

&

it

19

Stanley

company

the middle of 1953 of $10,000,000 first mortgage
bonds. Underwriters—To be determined by competitive

★

to issue and
one-for-teD

Pacific Northwest Pipeline Corp.

due

1983.

sale

& Hutzler (jointly); Stone & Webster
Securities
Corp.; Lehman Brothers, Bear, Stearns & Co. and A. C.
Allyn & Co., Inc. (jointly); Merrill Lynch, Pierce, Fen-,
ner &
Beane; Estabrook & Co. (2) For preferred—Stone
& Webster Securities
Corp.; Lehman Brothers; W.: Cj
Langley & Co.; Estabrook & Co. and Kidder,.Peabody &.
Co. (jointly)., Common stock will
probably be offered
for subscription by stockholders.
Bros.

Pacific

reported company may later this year issue

about

and sell

petitive bidding. Probable bidders: (1) For bonds—Hal¬
sey, Stuart & Co. Inc.; First Boston Corp. and Salomon

tion of about 400,000 shares of common stock. Proceed*
—Together with other funds, to be used to purchase ad¬
ditional equipment. Underwriters—Emanuel, Deetjen &
Co. and
Hayaen, Stone & Co. (with latter handling
books).
.<*':-)•
'

★ Middle South Utilities, Inc.
Feb. 3 it

a

Thursday, February 5, 1953

—

Pacific Northern Airlines, Inc.

Aug.

Metropolitan Edison Co.
Dec. 15 it

about

at

Brothers; The First Boston Corp.; Smith, Bar& Co. and Harriman Ripley & Co., Inc.

Dec.

capital

working

Underwriter—None.

in

(2,411,945

determined

stock

common

Proceeds—For

7, Ralph E. DeSimone, President,

common

announced company plans

was

additional

basis

ney

(3/27)

Merritt-Chapman & Scott Corp.

it

13

sell

.

viz: $5,500,000 of first
mortgage bonds and $5,500,000
prefererd stock in 1953 and $6,000,000 bonds,. $6,000,000
preferred stock, and $1,000,000 common stock in 1954J
Proceeds—For expansion program. Underwriters
Forbonds and preferred stock
may be determined by com-.J

-

Oklahoma Gas & Electric Co.
Nov.

Lehman

Registration—Scheduled for Feb. 5.

12.

Chicago & St. Louis RR. (2/10)
plans to sell $10,000,000 of
refunding mortgage bonds due March 1, 1978. Proceeds—
To retire $2,250,000 of short-term debt and for working
capital.
Underwriters—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co
Inc.; Morgan Stanley & Co.; Smith, Barney & Co.;
White, Weld & Co.; Kuhn, Loeb & Co.; Union Securitiei
Corp. Bids—To be received on Feb. 10.
New York,

41

.

.

sidiaries (which see) the parent plans to offer
common

.

stock

to

stockholders.

Securities Corp., New
I
<.

additional

Underwriters— Union

York.

v
"

★ Washington Water Power Co.
Feb. 4 it was announced Electric Bond & Share Co. in¬
tends to
not

more

sell in

the near future at

than 76,543

competitive bidding

shares of common stock of Wash¬

ington Water Power Co. (including shares which may
been purchased by Electric Bond & Share Co. in

have

connection with stabilizing operations).

Interested^parties

who desire-to submit-an offer should notify Lester Gins*

berg, Vice-President of Electric Bond & Share Co., Two
Rector St.. New York 6, N. Y., not later than 11 a.m.
(EST)

on

Feb. 5. Time and place at which bids will be
opened will be announced later.

received and

Number 5192

Volume 177

.

.

.

The Commercial and Financial Chronicle

(619)

Beverly Hills, Pasadena, Montreal
(Canada), and Basle (Switzer¬
land).

Continued from page 5

Shearson, Hammill
it

General Eisenhower along with his

•

•

New Buffalo Office

'

advisers^evidently/ has great

confidence in "the efficacy of .measures
vast natural resources/'

like ''development; of

BUFFALO, N. Y. — Shearson,
members of the
York Stock Exchange and

(Special'to "The Financial Chronicle)

SAN

principal stock and com¬
modity exchanges, announces the

Side of the Medal

Furthering the prospect of derflation there are also strong
forces. For
example, on the other side Of the medal of the, afore¬
mentioned pump-priming reserve, is the possibility that when the
test actually, comes,: no make-work or credit-inflating measures
will be effective to counteract

ities, to which is
And

a

followed

aftermaths

,

on

great inflations..

Of

immediate

more

given

this week,

later

gave

No

February 13, 1953.
payment was fixed'and

Pittsburgh

maintains offices

January 29,
Beard

of

Directors

March

CENTS

DIVIDEND

NOTICES

able

1953

COMMON STOCK,

cn

4, 1953
13, 1953.

to shareholders

G.

F.

of

pay¬

record

OffONMILLER, JR.

Vice President and Secretary

vco

D

Stock

share

on

tween

TECHNICAL OIL FIELD SERVICES

COMPANY

the Common

Union Carbide

"Dividend No. 63

payable March 20, 1953,

The Directors have declared

120

stock,

common

11. S. Pruitt,

quar¬

1953, to

Secretary

LcNiiifrtiii Ave.

New York

payable March 16,

stockholders of record
WILLIAM A. MILLER

17, N.V

Secretary-Treasurer

'

Beyond survey and analysis of the specific forces as the key
\ to pick the winner in the inflation-deflation tug-Of-war, the pervading public atmosphere can be significant, at least over the
short-tehn. Popular psychology is now veering toward rising es¬
*

for the dollar. One straw in this wind is the present im¬
proved placement of United States Series E Savings Bonds.
Following the two-year decline in basic commodity prices and
teem

loans, the hue and cry over currency depreciation seems to be
changing to appreciably growing desire for the dollar. In the

T953*

{-

;

the shorter-term an increase of deflationary psychology might

L;

well be controlling in moving prices below intrinsic value.

'
'

Secretary and Treasurer

NORFOLK SOUTHERN
PINE

SPINNING ASSOCIATES

has

'N<"*

the Common Stock, pay¬
able March 1, 1953 to stockholders of
record February 9, 1953.

per

share

MALCOLM

G.

January 29, 1953

CHACE,

JR,

~

President

,

'JLPJLQ-O-P-g-g.P, P 0 Off ft g ft 0 ,ft P ft ft ft PC

MANUFACTURING COMPANY

EATON

disregarding appraisal of the inflation-deflation direction
through the logical scientific counterbalancing of the conflicting

:; factors/we embrace the honest conclusion that the

answer must of

SUBURBAN PROPANE

at

ally—the buzzing in this observer's

ear

de-flationary.

% Appoints G. D. Greene
;

.

M

a n a

ge r

c^^-xGerity^Micirii^ni

Corporation,

payable March 4, 1955, to

of business

at

the close

Green

b

e e

tor

DIVIDEND

January 25,1955

clared

25c

a

per

2,

OF

THE FLINTKOTE COMPANY

The Board of Directors declared

1953, to stock holders of record

16th

D. L. BARNES, J K.
Treasurer*

NOTICE

January 30,1953

Greert

,

re-

sigued

a s

•

Frank-GUenther Law, Inc. to

the

Michigan.

through nation-wide

Association

ii: A 1 ber t

cept

Financing the Consumer

closing
George £).' Cireen

Vice -Presio

PLAZA

position

with




therefore

hereby

ac¬

Louis H. Meade

Gerity-

.

January 20,

Liquidating Committee
1953.

subsidiaries—principally:

notified

Phil T. Ruegger
Thomas D. Ainslie

Dated:
.

are

to present claims to the undersigned, at 85
Rector Street, Metuchen, N. J.

Public Loan Corporation
Domestic Finance Corporation

Loan Service Corporation

[tj.

COMPANY

Quarterly Payment

The Board of Directors oi Seaboard
Finance Co. declared

a

terly dividend of 45
on

A

Common Stock

regular
cents

a

quar-

•:

share

payable April 10.

1953 to stockholders of record March

quarterly dividend of $1.00 per
share
has
been
declared on the

19, 1953.

$4 Cumulative Preferred Stock

Preferred stock

payable March

ness

Metuchen

National
Bank,
located
at
in the State of New Jersey, is
Its affairs.
AH creditors of the

N.r.

16,

1953, to stock¬
busi¬

holders of record at the close 6f

Metuchen,

FINANCE

HEW YORK 21,

30 ROCKEFELLER

share, payable March 2,

February 16,1953.

LIQUIDATION

Plata, New York 20, N.Y.

COMMON STOCK DIVIDEND

regular quarterly dividend on
the Common Slock of 40 cents

iOf thecom-

'

30 Rockefeller

72nd Consecutive

a

per

2200

February 9,

5ERBORRD

ILLINOIS

ON COMMON STOCK

(Spec'-* to The Financial Chronicle)

Harrison,

on

1953.

Treasurer

QQTH CONSECUTIVE
07

Street.

Mr.

of business

INVESTMENT COMPANY

formerly^

with the
Merchandis¬

p an y.

Pebrudry 11, 1953.
dose.

Chicago office, 135 South

tion

.

per

payable art
1953, to stockholders

oil

January 29, 1953.

Richard

ing, Division

Wa*de»g
as regular and 25 cents,
share as extra, payab'e
on March 12,1953, tostock^
holders of record at"the dose
nated

the outstand¬

cn

■»

the capital stock cr

75 cents per share

quarterly dividend of
share

cm

THOS. A. CLARK

La Salle1' Streetr Mr. Tutwiler, was

A.

JERSEY j i J

$1.00 per share on January
.29, 1953. Of this dividend

ing Common Stock,

SACRAMENTO, Calif. —Doug¬
W. Siegalkoff and Henry F.
Siegalkoff have joined the staff of

•tisin g and
Sales Promo¬

:

Cash Dividend

NOtlCS

of Directors has de¬

Board

The

BIyth & Co.

las

of Adver-

NEW

IN

The Board of Directort

DIVIDEND

•'pointed Direc¬

OIL COMPANY

"(INCORPORATED

The transfer books will not

has. becomeZassociated with them

-

,

have declared a

on

Harrison Adds Two

-

...

€sso.
STANDARD

CORPORATION

H. C. STUESSY, Secretary "
Declared

Co.

has

nap

~

Treasurer

>11 ODUCTS

CHICAGO, 111. — BIyth & Co.,
anhdiince that Robert E, Tutwiler

George D,

January 29, 1953

February 11, 1955.

ta nn o u need

I that

President

NATIONAL DISTILLERS

March

in their

Thom^ p.,j Mc

MOREHlAD,

R. GOULD

of Eaton Manufacturing

Company has declared a dividend
of Fifty Cents (5 (X) per share on
the common shares of the Com¬

in the present, atmosphere

Joins

February Id, 1953.

The Board of Directors

of record
•

1953 fo stock¬

3,

holders of record

.

J, T. Kingsley,

;

•

Gerily-Michigan

Common Stock—30^ per shore
Payable March

February

of business

declared

dividend no. 28

quarterly dividend

close

the

i

regular quarterly

Company have

of
forty-two and one-half cents (421/2$ )
per share on the common stock of
said Company, payable on March
16, 1955, to stockholders of record

'.effect of

is

Railway
a

28, 1953.

Claveland Id, Ohio

DIVIDEND NO. 125

Southern

declared

GAS CORPORATION

Norfolk

The Board of Directors of

necessity be largely arrived at "by ear." This is because of the
imponderables as well as the impossibility of com parafive quantitative.measurement of the conflicting factors. Incident-

;

Dividend

Comriioti

on

shareholders of record

Also

r

RAILWAY COMPANY

Berk¬

Spinning Associates, Inc.,
declared a dividend of 25 cents
Fine

pany ,

The Answer "By Ear"

HANNAN,

KENNETH H.

/ securities

market, turnabout of the past reluctance to take profits
on stocks may be furthered additionally by the
rising yields on.
bonds and Other fixed-interest media—mitigating the potential
seller's "what shall 1 do with the money?" worry. While it is still
true that current common stock levels generally are justifiable on
value rather, than on "inflation-hedge" criteria, nevertheless over

Fifty cents

2, 1953 to stockholders of record
the close of business February 6,

goods, and the continued sag¬
ging of farm product prices despite the increased government crop

(

of

(50if) pet share on the outstanding
capital stock of thig Corporation
has been declared, payable March
at

its current spread to manufactured

>

dividend

cash

A

February 18, 1953.

January .'10, 103.1

shire

Climate of Deflation

COBPORATlOB

AND CAXBOIT

a

terly dividend of 35 cents ori the

27, 1953.

ruary

The Board of Directors of the

1947 and 1952.

Boston, Mass.

LAN E-WE I IS

stockholders of record Feb¬

to

dividend of Sevehty-five

of Boston, Dividend Disburs-

Trust Company

160 State Street,

quarterly dividend of

a
a

A regular quarterly

Cents (75 ji) per share has been declared payable
February 16, 1953, to stockholders of record at
the close of business February 9, 1953.
Checks will be mailed by the Old Colony

Paul E. Crocker, Seaacry

Famous Names"

Manufacturing Corporation has
15 cents

Boston, January 29,1953

tog Agents.

Family of

The Board of Directors of Avco

declared

COMPANY

1953

31,

share

per
March

February

"A

PEPPERELL

basisr to include social security and other funds find¬

* '

pay¬

Debentures.

has

declared for quartet
DIVIDEND of ONE
r.nd
ONE-HALF
iV/s'.'f) PER CENT or $1.50
per
share cn PREFERRED STOCK, payable
April 2,0, 1953 to shareholders of record ApflL
6, 1953.
Also declared a DIVIDEND of FIFTY
endnig

in Los Angeles,

con-

ing their way back into the government's accounts, the apparent
deficits well-nigh became surpluses. Thus the total of national
debt held by the public actually fell from $225 to $214 billion be¬
,

"B"

MANUFACTURING

We must also bear in mind that if the past buget be viewed cash

Class

Pennsylvania

policies, deflationary rearrangement of the national debt, and,
promises of all-round retrenchment, are more than empty phrases.
a

as

W. w. COX, Secretary.
Ydrk, NeiV York, January 29# 1953.

NOTICES

crete evidence that the President's endorsement of harder money

on

declared

on

REFRACTORIES COMPANY

Chicago, Hartford, Dallas, Houston,

•

significance, the Administration through

orders

economy

ness

able

HARBISON-WALKER

Will be Robert

although prices

*

definite

DIVIDEND

Shearson, Hammill & Co. also
.

making for de-flation include:—de¬
clining net exports, falling farm income, falling inventory and
other investment decline, prospective ending of the Excess Profits
Tax; and, of great importance in its long-term impact on the price
level, the nation's great achievement in enormously increasing
productivity and investment in plant and equipment. The nation's
Chronic proclivity to over-producing in many lines (as perhaps
even
in man-made fibers now) functions as a pervasive depres¬
sant on the price level.
Its

COMPANY

,

Board of Directors has fixed and de¬
$50.00 the amount payable on Class "A"
(Payment NO. 67), and A dividend
of $5.00 to be payable ott. the
capital stack ant
of net earnings for the year
1952, payaU* at
Room No.
3400, No. 20 Exchange Place, tfcv.
York 5, New York, on, and after Febrttaxy
34,
1953.
The dividend oh the stock will be
paid
to stockholders of record at the close of busi¬
clared

Debentures

.

Highland. Mr. Highland was
formerly
with
Merrill
Lynch,
Pierce, Fenner & Beane.

now

;

has

the staff of Hannaford &

RAILROAD

serving

of

resident manager

subsequently rest on a plateau higher than their respective
prewar level. After the Civil War the price level declined 28%
in the first three years, and during the next decade of the 1870's
fell another 15%. After World War I, from May, 1902, tp June,
1922 wholesale prices were cut in half.
Now exceptionally the
wholesale price level is up close to its postwar peak, at a level
higher than double prewar.

elements

Calif.—

MacGowan

I

WESTERN

NtW

the

for

D.

Talbot, 519 California Street.

J.

did

Specific

be

&

investors in
Western New York State, and the

out the

Such deflations have invariably followed wars,

,

offices will

new

purpose

74% of the government's spending.

now. ascribed

caiinot rule

we

The

sudden cut-off of armament, activ¬

possibility of some other wholly
unexpected adverse development drastically altering the confident
expectations of stability by businessmen and consumers.
While
indeed "this time may be different" we cannot forget that always
in the Nation's history have such "going-through-the-wringer"
,

joined

opening of offices in the Genesee
Building, Buffalo 2, New York.

.

FRANCISCO,

Catherine

other

De-flation

•

BAY

_

New

NOTICES

-i——

■

GREEN

The

Joins Hannaford Talbot

Hammill & Co.,

our

DIVIDEND
—

43

A

March 2,

quarterly dividends of 43

1953.

quarterly dividend of $.50 per

share

has

Been -declared

Common Stock

on

the

payable March

at*
the, close of business Feb. 24, 1953.
10, 1953, to stockholders, of record

Ohio Finance Company

dividends

The directors also declared regular
cents

a

share

on $1.72 Convertible Preferred
Stock, and 55 cents a share on $2.12

Convertible Preferred Stock. Ail pre¬
ferred dividends

10,

are
payable I April,
stockholders* of record 1
19, 1953-

1953

March

•

to

CLIFTON W. GREGG,

General Public Loan

A. E. WEIDMAN

Vice-President and Treasurer

Corporation

.

Feb. 4,

1953

Jan. 22,1953

HfddSum

44

The Commercial and Financial Chronicle

(620)

..

Thursday, February 5, 1953

.

beyond the Intent of Congress in

BUSINESS BUZZ

applying regulations more harsh
than
the
law intended.
Con¬
has received many sugges¬

gress

on

•

•

•

tions

for

from the Nation's

And You

Capital

"cure"

to

past attitude

Bureau of Internal

of the

Behind-the-Scene Interpretations

legislation

legislation the

by

Rev¬

enue.

Taber Finds Spending Examples
The

-

WASHINGTON, D. C.

going

Left-

—

shirt

wing hopes to the contrary, Con¬
fess

and the White House

HOT

on

the

before

the

of

Democrats

can

tify their fond hopes of

a

jus¬
split

has

with

of

scores

argument

is

duties of any

give

the

The

full

For 20 years

fighting

the GOP has been
Democratic Presidents

their

pect of warfare

around

in

the Re¬

and

reshuffle

to

power

he

merrily upward.
So in

lowers
see

General

of

an

Wilson
time

reorganize the governmental,
establishment, the GOP leaders

,

(minus, however, the chairmen?
of the appropriate committees)
went
along
with giving Mr.'

blunder.
appointed
at
the

•

unnecessary
was

when

the

the

Eisenhower

i

reorganize

Ike

boys were
exulting in their victory and
weren't consulting with anybody
In Congress about anything.
Any two-termer in the House,

same

power

Congress

that

Joseph Dodge, the

Budget Director, appeared
before committee
to speak in

favor of this

got himself purred by Rep. John
McCormack,
the
Democratic

spread

terrific
dent

tiave

advance, would
the word of the

sacrifice

Of

the

General

been

ex-presi¬

Motors

compelled

to

into saying the fewer
Congress
put
on
the
President's power to reorganize,

make

in the interest of giving his out¬

the better it would sit with Joe.

standing services to the public.
If Congress had been consulted,

This, of course, didn't tend to

and Mr. Wilson had been given
the word privately before he

^accepted,

he

could

put Mr. Dodge in as favorable a

light

might otherwise

as

been the

had

have

proposition. Dodge

leader,
strings

would

case.

It

was

have

not, how-

time to absorb the shock of the

over,

personal

the

the two committees of Congress

em¬

made it easier to upset a forth¬

loss

and

saved

Eisenhower Administration

barrassment.
On

the

coming

hand, there is
no
evidence among the sober,
responsible leaders of the GOP,
«f any abiding and implacable
anger over this thing.

ence

can

of

'

get

Congress

no

party

command the obedi¬

of committee

chairmen, but
despite Dan, most everybody is

seriously the subject of overall

hower," but at the aforesaid
management engineers. It wants
to protect
Eisenhower against
these

birds.

Mr.

Dodge's unfamiliarity with
rudimentary politics of re¬
organization, suggests to GOP
leaders in Congress that maybe
some of these outstanding busi¬
the

the

first

'

themselves

place, Congress
has a deep and abiding distrust
of the "management engineers,"
Nelson Rockefeller, et. al., who
are planning the reorganizations.
Management engineers have
been prowling over the govern¬
than a decade,
"streamlining" and
"efficiency," and the volume of
government spending, payrolls,
and empire building has gone

ment

for

more

suggesting

of

free

and

merce,
does

They
their

he

is

going

evidence,"

to

^uni
Mr.

observed

is, however,

a

tolerant

genuine comprehension of

the value of this business brains
to the government.

There also still is strong faith
Mr. Eisenhower on Capitol

Hill.
-

on

Some

of the most

opponents

the

of

B.

vinced he

GOP,

have

means

talked

are

con¬

well and when

he gets around to it, which they

hope will be soon, things will be
straightened out.

un¬

Folsom,

the

will be in the tax field.

Overall tax

revision, of course,
is said to be impossible until
such time as expenditures have
been sufficiently reduced so that
the Treasury can balance the
Budget on a lower volume of

Com¬

about

1,000 economists, the State De¬
partment 340, the Treasury 70>
and the Department of Agricul¬
ture 2,500. The number of theseWILL be cut.

(This column is intended to refleet the "behind the scene" interpretation from the nation's CapitdS
and may or may not coincide with
the "Chronicle's" own views.)

revenues.

All

the

moting

a

major ideas for
more
equitable

pro¬

tax

allowances,' working

income, exemptions for expen¬
insurance, or
reducing the capital gains tax—
involve losses of revenues,
at
least at first. So do many minor
remedies
of
inequities, which
can be counted by the hundreds.

ditures for health

It

has

not

when

mence on a

been

Appointment of Dan T. Smith,

School

Administration,

for

Substantial

legislative relief
probably will not be possible to
achieve for a couple of years.
Meanwhile,
Treasury

may

however,
look
can

at

the

tax

in¬

be remedied

without too great a loss of rev¬

Professor of Finance at the Har¬
Graduate

decided

hearings will com¬
general revision bill.

equities which

Study Tax Revision

ness

reported that the
Department has

Treasury

Under Secretary. Folsom's duties

ardent

Eisenhower

with the President and

vard

the

tax problems,

Marion

der

sure
ex

frame

toward
ending double taxation of cor¬
poration income, reducing the
burden of taxation on foreign

understanding of their problems

in

help

industry, and finance
automatically endow
men
with
political sa¬

There

a

will

is

It

merce

system—shorteningjtepreciation

gacity.

and

Is recruiting a staff of

com¬

not

these

Smith

tax experts and economists who

expert

political advice at hand.
should comprehend that
unquestioned success in

among

In the second

would be wise to avail

nessmen

revision.

tax

viewpoint

inept remarks to Congress, and

of Truman's plans.

economy.

his two-way
(Excess Profits Tax and per¬
sonal
income) tax cut bill
through, and the way he was
slapped down.

leader

plan

place, Congress
has certain pet bureaus which it
wants to protect, economy or no
-

In the U. S.

President than to upset

In

"The opponents of the Admin¬
istration also cite Dan Reed's

to

reorganization

new

one

'

Han Reed Is Anxious

eagerness

because of this boner that

the

other

the

that the Treasury is taking most

f

if consulted in

for

thinker

and

Treasury, is believed to indicate

Eisenhower

Some of Mr. Wilson's alleged

new

bave

now

state's

some

gave
•1

Mr.

Then

and

Y

anent

on

Congress Trusts Eisenhower

to

Truman.

.

and

reorganization, Congress felt it
was not "taking a slap at Eisen¬

also

to

:

Eisenhower

in the handling of the Wilson

case

power

planner

tentatively putting

strictures

have

to

as

of

Busi¬

top tax

it is suggested in Congress.
fitting type of circumstances

enue,

A

Economic Stability in a Chang¬

ing World
Oxford

—

John H. Williams

University

Press,

—

114

Fifth Avenue, New York 11, N. Y»
—Cloth—$5.
Small

Business:

Its

Role

and

Its Problems—Economic Research

Department,
merce

Chamber

of

Com¬

of the United States, Wash¬

ington 6, D. C.—Paper—50c (lower
prices on quantity orders).
Stabilizing
Record

and

Construction:
Potential

The

Miles

—

L,

Colean and Robinson Newcomb—

McGraw-Hill Book Company, Inc.*
330 West 42nd Street, New York

36, N. Y.—Cloth—$6.

is where the Bureau of Internal
Revenue in the past has, in the

opinion of many taxpayers,

gone

TRADING MARKETS
Caribe Stores
Gorton Pew Fisheries'

Washington Representative
Business consultant and economist,

over

20

years

FIRM TRADING MARKETS

in Washington,

commercial

and

experience.

Interested in part time representation of business,

financial

banking, investment

or

insurance

Washington developments
special reports, etc.

reporting, analysis.

firms

affecting

No lobbying.

for

the

their interests.

Surveys,

Box B 129, Commercial and

Financial Chronicle, 25 Park Place, New York
7, NY Y;




FOREIGN

George E. Keith Pfds.
Naumkeag Trust Co. (Mass.)
Middlesex Cy Nat Bk (Mass.)
National Co.

(Mass.)

Polaroid Co. Pfds.
Riverside Cement "B"

Co.

Rockwood

PARL MARKS & HO. INC,

Pfd.

Southeastern Public Service

FOREIGN SECURITIES SPECIALISTS

LERNER & CO.

50 BROAD STREET...NEW YORK 4, N. Y.

TEL. HANOVER 2-0050... TELETYPE: NY 1-971
.

Common

Norfolk Cy Trust Co

SECURITIES

Wide foreign

following of

,

ac¬

Taber.

play

So when Ike let it be known

wanted

Mr. Snitzel'

'Cordially Yours'!"

establishment.

The Wilson Incident

"I missed that part between 'Dear

bureaucratic

the

with

publicans.

Department

million. "So the official resigned

demands for unlimited

Cap¬

'

State

knowledged the report, accord¬
ing to Taber, and said they were
increasing his budget to
$18.

'

itol Hill simply does not justify
the eager anticipation
of the
ousted Fair Dealers of the pros¬

stating that he
turning back the unneeded

$4 million.

power

the President
he wants.

report home,

a

was

Congress would, in the final bill,

ministration and Congress.

rehabilitate a
This official, and

ment, found they could spendi
profitably only $10 million this
year. So the MSA official wrote

Flubs

ment, although it appeared that

urgent
problem of stringing the lines of

to help

year

small country.

Something is being made of
"slap at Eisenhower"
in
curtailing the President's free¬
dom to reorganize the govern¬

prob-

There is, of course, no denying that the Congressional fol-

,

budget of $14 million this fis¬

a

cal

the

communication between the Ad¬

among

substance.

the cooperating foreign govern¬

Mr. Dodge

not had time

on

stationed

balancing BEFORE they make a
record for tax relief.

.

to deal with the equally

Factually, the feeling

State

Another Mutual Security Ad¬
ministration official abroad had!

simply

pressing

lems, that it has

The

end.

the

in

one

formerly

primarily over timing. The more
responsible
GOP
leaders, ineluding President Eisenhower as
he himself said, simply want to
make their record for Budget

fng force and familiarize itself
.

highly-placed leaders
in all likelihood they

that

is

^jbecn so overwhelmed with at^tempting to recruit a top work1

as

Com¬
belief of

Taxing

private

The

an.

come up

Department
in
Europe complained about being
transferred to Washington, D. C.,.
"where he had to work," and on:
only $10,000 per annum. In
Europe various allowancesbrought his real pay to $20,00fr
a year and he had a car and no-

will be able to pass Reed's bill,
;

White

for this is that

reason

He said

most

the

yet.
Administration

the

mittee.
*

(as previously reported in

And! the

perform

to

of

has

couple of examples of the

a

official

tax cut and this is his

a

chance

Chairman

these columns), simply has not
been put into working order as

,

get

first

and

latter.

'

House and Congress which has
been set up on principle or on

the

with

situation with Dan Reed

The

sylvania Avenue.
The factual situation, as seen
3at the Capitol, is simply this:

paper

arch foe of waste,

is that he has long been anxious
to

between the two ends of Penn¬

The liaison between the

his

keeping

until he finds out what

Eisenhower wants.

are

political
warfare. A very, very great deal
more
of trouble must happen
verge

and

along
on

Taber,.

the House Appro¬

Committee,

priations

4

John

redoubtable

Chairman of

Investment

Securities

10 Post Offico Sqiare, Boston 9, Mass.
f

Telephone
HUbbard 2-1990

Teletype

»

?

,

?

BS68