Full text of Commercial and Financial Chronicle : February 7, 1952, Vol. 175, No. 5088

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UNIVERSITY
OF MICHIGAN

FEB 8

1952

BUSINESS ADMINISTRATION
LIBRARY

Reg. U. 8. Pat. Office

Volume 175

Number 5088

New

York, N. Y.,-Thursday, February 7, 1952

Price 40 Cents

Copy

a

EDITORIAL

Funds Accelerate

As
In

his

We See It

Utilities Buying

recent

Budget Message the President
includes $10.5 billion for
"Military and Economic
Assistance" to foreign
peoples. "The Foreign Aid
Program" is the more popular term for the item.
It includes all sorts of

things (details

fully available) from

weapons,

the like

become

to

what

has

Point Four activities.
of

the

This is

are

agencies.

Survey and analysis of investment companies' fourth

pected to meet the

of the

ferred

vigorous opposition in
uneasy about fiscal
extravagance—and even more uneasy about any
attempt to reduce outlays which are believed to

political loans in the good, old days
imperialistic rivalries. It was then often hardly
a

even

to be

more

form of international

denominated, of
to the

classified

so

or

ered

It is to be

otherwise, which

to

a

for

so

Exchange Commission has
release entitled "Notice Of
Proposal
To Adopt and Amend Rules With
Respect To Fees
and

are

implement the provisions of Title V of
the
Independent
Offices
Appropriation
Act
of 1952".*

this
survey,
as
contrasted
third in the previous
quarter,
this
reason
and
also to
make

This release quotes a
which
pose

reserves

of

(Where

fered

to

cash

the

and

govern¬

option

stockholders

of¬

was

to

are

The

buying of the utility

believe in it are,

even

a

acquired

therefore, much inclined to find
to change this label carrying the word

way

"aid" to

and file.

One of the

ments of this kind

might make the
acceptable to the great rank
most outspoken recent
argu¬

comes

tration,
Ford

Paul G.

siasm

Hoffman,

director

of

icals

the

these

into

came

the

of

on

with

quarter and

wider

a

A.

porate securities

IN

arc

a

complete picture

on

pre¬

annual

(based

new

now

and potential undertakings in our "Securities in Registration"

making the Commission

registration
upon

tration fee of

pur-

28

from

$500

balance

to

sheets)

$25,000

payable

$50 payable by investment advisers;
Continued

.

investors

and

fee

corporate

registered with

Section, starting

on

in
the

on

page

cor¬

SEC

page

42.

State arid

Government,

State and

Municipal

Securities
TELEPHONE:

STATE (no

R. H. Johnson & Co.
INVESTMENT

BONDS

Mining

Oonds

Direct Private Wires
J%0ttd Depertmcnt

64 Wall

BANK & TRUST

Street, New York 5

BOSTON

COMPANY
DEPARTMENT

J. A. HOGLE & CO.
ESTABLISHED

Members

Albany

Harrisburg

OF NEW YORK

Scranton

Wllkes-Barre

ST., N. Y.

THE NATIONAL CITY BANK

PHILADELPHIA

Troy
30 BROAD

and

Securities

SECURITIES

Chemical

BOND

Municipal

UTAH

MUNICIPAL

Oil

Established 1927

IIAnover 2-3700

50

Williamsport
Alhntown

Washington, D. C.

Dept. Teletype: NY 1-708

Los

Lake

THE

1915

of all Principal

Broadway

Salt

Bond

New York

City

CHASE

Exchanges

NATIONAL

BANK

Denver

Angeles

Of

Spokane

an

Of NEW

YORK

NATIONAL BANK
Pacific Coast &'

of INDIA, LIMITED
Bankers to the Government

in

Kenya Colony and Uganda
Head

Office:

26,

London,

CANADIAN

CANADIAN

SECURITIES

Hawaiian Securities

BONDS & STOCKS

-

Central Vermont
Public Service Co.

Bishopsgate,
E.

C.

Direct

Private

COMMON

Wires

Branches In India, Burma, Ceylon. Kenya
Colony, Kericho. Kenya, and Aden

*

CANADIAN

DEPARTMENT

Analysis

upon

request

and Zanzibar

Subscribed CapitaL.

Paid-up
Reserve

Capital
Fund

Dean Witter

£4,000,000
£2,000,000

14

—

Bank

Co.

Wall Street, New York, N. Y.

conducts every

description of
banking and exchange business

Trusteeships and Executorships
also undertaken




Goodbody

Principal Commodity

and Security
San Francisco

•

Exchanges

Los Angeles

,

Boston

•

Honolulu

•

Chicago

Co.

&

ESTABLISHED 1891

£2,500,000
Members of

The

&

,

♦

MEMBERS

NEW YORK STOCK

115 BROADWAY

NEW YORK

DoMimoif Securities
Grporatioh

105 W. ADAMS ST.

IRA HAUPT & CO.
Members
and

EXCH.

CHICAGO

no

rules to effect these—all with

in

U. S,

areas

previously made

by Registered Holding Companies and Certain
Exempt Holding Companies; (3) an annual regis¬

the

page

dealers

issues

of

SEC has

and
changes are: (1)
registration fee running from $30 to

annual

rails

the

margin of

REGISTRATION—Underwriters,

afforded

the

$2,500 (depending upon value of total
assets) pay¬
by Registered Investment Companies; (2) an

Long

doubling

Continued

NOW

which

proposal- of
fees in

new

able

purchases

34

SECURITIES

Henry

Popularity of the food shares eclipsed

third

Commission's

Among these innovations
an

securities

balance, in contrast with the

favor

pur¬

"self-sustaining."

issues

selling of the previous quarter and

amount of sales.

that

page

boueht

were

again

Foundation, who in last Sunday's issue of

on

for

the

the declared
purpose of

shares,

of

through

shown

dominant

the New York "Times" has this to
say:

Continued

exclusion

16% of all portfolio additions. Chem¬

of a for¬
Cooperation Adminis¬
now

the

follows

charges, and of

earlier in the year and approximated

from the pen

chief of the Economic

mer

within

the
exercise
of
rights, exceeded the marked enthu¬

other term which

some

program a bit more

with

Congressional

to be that every Federal Agency shall be

Then

up the
additional shares, thus preventing a
greater drain on cash backlogs.)

of the national government.
doubtless with the utmost
sincerity

Those who

paragraph from this Act

indicate the

changes in fee schedules, and

thirds to three-quarters took

growing a
super-generosity

to

seems

self-sustaining.

reinvest

year-end distributions in ad¬
ditional stock, generally from two-

good many in the country who
little restive about this continued

is issued

to

.

a

ments.

a

that the release

announces

"

their

But there

Charges By The Commission."

into

may or

a

The SEC

capital gains dividend payments dug

may not result from it.

be similarly affected.

purse

The Securities and

just issued

in

with

It is

quite without reference

course,

profit, national

now.

bribery.

Other industries may

strings as a deterrent
rampant lust for power. Warns of danger of slip-in
provisions in legislation.

decreased

reserves

During the final quarter of 1951, investment com¬
panies stepped up their tempo of buying
by 15% over
the previous period, and cut back their
selling by ap¬
proximately the same amount. Half of the funds cov¬

to be termed

other than

Cash

Long's tables detailing fourth quarter portfolio
changes and cash position appear on pages 29 and 30.

President and others includes much of what used
of

adherents.

Mr.

envisaged by the

as

gains

Commission.

Congressional control of the

by
buying and payment of year-end capital gains dividends.

most

The program

inter¬

shares; and continuing popu¬
larity of food, radio, electrical equipment, natural gas,
steel, and textile issues. Medium of convertible pre¬

familiarly termed

Stresses injustice of annual registration fees

imposed on brokers and dealers and their selling em¬
ployees. Analyzes dangers inherent in a self-sustaining

in chemical and rail

est

Congress, which is vaguely

capture votes.

portfolio operations also reveals increased

quarter

not yet

portions
spending plans which is ex¬

President's

Opposition voiced to SEC proposal to implement Inde¬
Offices Appropriation Act.
Asks if taxing
power of
Congress has been delegated to executive

pendent

By HENRY ANSBAC1IER LONG

ammunition and

one

Closing In!

40 Exchange Place, New

York 5, N.Y.

111

New

other

Broadway, N. Y. 6

WOrth 4-6000

Teletype NY 1-702-3

WHitehall 4-8161

Boston

York Stock Exchange
Principal Exchanges

Teletype NY 1-2708

Telephone:

Enterprise 1820

38

The Commercial and Financial Chronicle
2

.

.

Thursday, February 7, 1952

.

(562)

The Security

MARKETS IN

TRADING

Polaroid Corporation
American & Foreign

•

Power

in the investment

Puget Sound Power

New York

the

Member, New York Stock Exchange

the

Rights & Scrip

be

can

expected

to

continue

Since 1917

for

120

REctor

Tel.

for

need

2-7815

Peter

but

204,

cash

5%

a

dividend

$4

of

to

dividend

is also

stock

Although the income is
further mech- low, I believe that the excellent

prospects which this stock affords
Machines f0r establishing profits over the
Corp. is in an unusually favorable long term will be gradually reposition to capitalize on the need fleeted in its market action.
for
such
mechanization.
ElecA government suit against IBM,
tronics have widened the applica- filed in January, alleging that the
tions of office machines, and IBM company monopolizes the tabulathas
achieved more
in applying ing industry, has had a slightly
electronic principles in this field adverse effect on the stock, but
than any other company. The ac- would seem to provide a buying
celerated demand for all types of opportunity. A long-term vote of
electric
accounting machines is confidence in the company was
evidenced by the steps taken by expressed
recently by the Pruthe company to expand its manu- dential Insurance Co. bv its action
facturing facilities and increase in agreeing to loan IBM $115 milthe number of machines in the lion for 100 years at 33A%. IBM
field.
Additions at Poughkeepsie common stock' is listed on the
will practically double the size NYSE and, in my opinion, is a
of that plant, while a new factory security suitable as an investment
in Canada will also mean a con- for individuals
and institutions,

work.

anization of office

Dan River Mills

Handley Hardware Co.

Scott, Horner &.
Mason, Inc.
Lynchburg, Va.
LD 33

Tele. LY 83

IIIII11IIIII1IIIIIIIIII1I1IIIIIIIIIII1IIIIII

Engineering

Texas

siderable

& Manufacturing
Information

pany's operations justify the

44 Wall St., New

NY

come

BOwling Green

Teletype

of

GERMAN
Securities
for

our

Study

OPPENHEIMER & CO.

war

York Stock Exchange

25 Broad Street,

as

effect

4-0418

profits

on

economies,

of

from

well

as

the company's
and profits is indicated
on

reverse,

the

in

'

transitions

of

to defense

the

revenues

New York 4, N. Y.

WHitehall

effect

following

table

(in

mil-

lions):

a

Profits

Net

be

dt

Such

Paul

company,

Chester

new

dynamic Detroit

product

IN

.

UTILITY STOCKS

Rev.

Taxes

income

$38.3

$2.2

$9.1

44.9

3.4

9.4

111.1

20.5

9.6

essential

products have gained naimportance and generally

Private
to

New

Telephone
York

CAnal 6-1613
J. B. Maguire & Co., Inc.
members Nat'l Assn. of Securities

Dealers Xno.

31 Milk St., Boston 9, Mass.
T«L HUbbard 2-5500

Tele. BS 142

1946-49 Av._

148.7

16.0

25.9

tional

1949

183.4

19.9

33.3

speaking

1950

Direct

214.9

27.8

33.3

milk

As

shown

income
the

tax

in

the

rates

higher
especially

table,

and

excess-profits tax were prin¬

cipally responsible for net
come
during the war years

in¬

levels

de¬

maining

around

1940

re¬

substantial
increase in
Portland, Me.
Enterprise 2904
gross
revenues.
Although gross
Hartford, Conn. Enterprise 6800
revenues increased
less following
Open End Phone to New York Canal 6-1813
the war than during the war, net




spite

a

consist

and

ice

of

lease.

Net Sales and
Revenue

1945_::

Working

1951

-l'__

30 Broad St., New
Phone

HA 2-2600

Profit

$329,000

capital
on

1,983,000

3.11

Dividends

sales

has

been

page

36

Tel. NY 1-1017

Placer

Development,
Limited
LEAD—ZINC

TUNGSTEN

-

OIL

-

GOLD

Analysis available on request

John R. Lewis, Inc.
1006 SECOND AVENUE

SEATTLE
Teletype

SE

ELlot 3044)

105

Over-the-Counter

♦Equity

Quotation Services

per

for 39 Years

Com. Share

$4.23

$0.51

15,068.000

35,530,000
§65,000,000

—

York, N. Y.

HIGHLIGHTS

$3,452,000

56,451,000

1950__.

^Allen & Company

,

♦Per Common Share

Profit

___

,.

Continued

Net

Year
-

Bank and

Net earnings are

records in sight for both

packaging

Fiscal

1940__

Tel. NY 1-1932

DIgby 9-1550

are

pasteurizers,

cream

Assn.

New York 7

Despite higher taxes the
with

EX-CELL-0 CORP. STATISTICAL

1935^

Tel.

Dealers

Security

Broadway

peak of $65 million

for 1951 which would
high in the company's

_

products. By development, refinement and sales promotion, these

1941-45 Av._

and

pins

uur;. ..
,
,
Dividend disbursements have
been modest because of the need
J fuftds to reduce bank mdebt®dness and capital requirements
2.:?^.!!uLv—J placed under
chines
which

coverage

through the years by acquisition
of companies with complementary

1940

MARKETS

150

Y.

N.

Members

other

and net earnmgs (estimated at $7
plus per share). The excess profits tax credit base is about $5,000,-

has risen from the heart of

its

Gebsten & Frenkel

outlook for 1952 is excellent,

Ex-Cell-O

Corp.

new

a

history.

1939

Year

ACTIVE TRADING

share

per

gain the

"sweet."

-

standard drill

expected to show in excess of $6

"bit¬
V"'

ter" to

Dewey & Almy Chemical

engine

and

railroad

reached in 1943.

must

the

take

Foote Mineral

bushings, and textile spindles.
Sales for 1951 approximated the

agement group

expanded

Excess-

bushings,

jig

Started in 1919, Ex-Cell-0 has
Gross

assemblies

blade

World War II

which

bor¬

as

turbo-jet

cover

company
rotor

a

adverse

machinery such

aircraft components,

man¬

higher corporate taxes, especially
the excess-profits tax.

Rights

taxes,

ing mills, precision grinding spin¬
dles, lapping machines, thread and
form grinders, tool grinders, and
hydraulic power units.
Precision parts produced by the

untking

vigilant

to the

compared

&

Bought—Sold—Quoted

standard

.

^he

Common

General Aniline & Film "A"

n«Lnonioc machine tools, Ex-Cell-0 produces

t

pffnr+c

as

The

Members New

fnr0

£ore co;npanies
through technological devel0pment are able to lift them-

profit

the
Ask

tho

Dayton Power & Light

In. addition to special purpose

which

reported on the company's regular
business.
Of more importance is

profit

Information on request

$50 per share.

Corporation

llv
cally hrfner +n
brtag tQ

material, which can be ex-

pected to increase over the near
term,
provide only a nominal

Internal

THERMO KING RY.

Insurance Stocks

Shifting economic tides period!-

gains

war

MAINE CENTRAL R. R.

substantially
exceeds the present dividend rate
of $2.00 per common share annu¬
ally—a return of 4% at a price of

Detroit, Mich.
Ex-Cell-0

income

eral

similarTo thost? re- sel
jpt
th
ported after World War II. How- i:
]iphi
f
ever,
two phases of the defense investment at_
program seem l.kely
to restrict traction Usu_
IBM's
expansion
in
profits for
n
nrnf,rp„
the present. The company's sales
J?w and

show

9-0040

1-1862

eventually repealed net incan
be expected again to

tax is

^

appropriate charges including Fed¬

Baker, Simonds & Co.,-

opin-

the excess-profits

when

that

ion

York 5, N. Y.

branch offices

J

rental basis that returns approxi-

f; PAUL CHESTER

that

SUTLER, CANDEE & MOSER

to our

..

mately 65% annually of the averaSe. net book value of such
equipment. Construction of these
machines, started in 1936, was impeded by World War II. The 160
units owned by the company at
the end of 1945 have since increased to over 1,700, representing
an investment of approximately
$15,000,000 net after depreciation
charges of about $8,500,000.
Even though construction of additional packaging machines may
be seriously curtailed by the defehse effort, it is evident that income from this source, after all

capacity.

to

plant will serve the

company's expanding business in
country and in other coun¬
tries throughout the world.
Recent expansion of the com¬

Request

on

addition

The Canadian

Mobile, Ala.
Direct wires

^

International Business

Moore

NY 1-1557

:

the

addition

in

methods of accom- paid.

plishing this is the
American Furniture Co.

York 4, N. Y.

Hflnover 2-0700

especial importance for the
148 State St., Boston 9, Mass.
long-term future is the Pure Pak
Tel. CA. 7-0425
Teletype BS 25#
division which produces automatic
N. Y. Telephone WOrth 4-5000
machinery for the packaging of
ice cream, milk and other dairy \
products in sanitary wax-paper
containers so familiar to the shopSouthwestern Public Service
Per* The milk packaging machines,
Common &
Rights
we^ covered by patents, are leased
out to dairies on a royalty and

it did in the last

as

cash

a

of

Ball

One of

accepted

the

Trading Markets

in Fostoria
and
Garwood>

ohii

u

and

low return on a price

provides

clerical

staffs.

IBM's

ten.

the
productivity

tiiijiiiliiiiiiiiiiiiimiiiimimiiiiiiii)

Curb Exchange

and 0ther plants

jroj(

.

margin, just

im¬

proving
of

larger plan(s of Ex.Cel,.0
iocated in Metropolitan De-

are

York

ol'\000

have
increased
the

wages

NEW YORK S

BROADWAY,

to¬

higher

ward

Exchange
Exchange

Stock
Curb

York

trend

the

Members

parts.

The

and N j The Lima plant was recently
possible dislocations arising from completed for tbe purpose of pr0_
defense work, there are good readucjng aircraft engine components,
sons for believing that during the
j
* £ h
, * ts represent a
next ten years IBM common stock
()oor
jn ^xcess
000
will again perform better than the
f
t
■
Dow-Jones Averages by a wide

opments comb i n e d
with

frfcpONNELL&fO.

cision

Despite

devel¬

These

New

25 Broad St., New

New Orleans, La. - Birmingham, Ala.

phia, Pa. (Page 36)

share reported for 1950.
increased
taxes

per

years.

many

Taggart

New York Stock Exchange

Members

President, Charles A.
& Co., Inc., Philadel¬

Taggart,

$6.92 per share compared with
$8.09 in the same period of 1950
Full year 19ol earnings will of
course
be lower than the $11.48

govern¬

ment

Members

rent difference in before- and
the a-fter-tax results. Although preall tax net was up 25%, net after machines, machine tools, cutting
taxes declined 14%, amounting to tools, and aircraft and other pre-

of

branches

Steiner, Rouse & Co.

A.

mass

production
techniques and
many
reports
required by

Specialists in

York

of

expansion

from

sulting

Detroit, Mich. (Page 2)
Central Soya Co., Inc.—Charles

1951 illustrates the cur-

port for

Paul

—

Chester, Baker, Simonds & Co.,

income.
The company's nine months re-

work re-

Corporation

Ex-Cell-0

the repeal of

tax

gross

International Business Machines Corp.
The increase in paper

New

net

New York 5

Teletype NY 1-583

excess-profits

Bought—Sold—Quoted

(Page 2)

permitted
company to carry through to
an
increased percentage of

the

Cleveland, Ohio

Established 1920

New

Lower tax rates and

Partner, Ball, Burge & Kraus,

Burge &" Kraus, Cleveland, Ohio.

substantially.

gained

income

BALL

PETER

Hanseatic

120 Broadway,

Corp.—Peter Ball, partner, Ball,

intended to he, nor
offer to sell the securities discussed.)

they to be regarded, as an

are

Louisiana Securities

International Business Machine

particular security.

a

(The articles contained in this forum are not

& Light

Corporation
BArclay 7-5660

for favoring

participate and give their reasons

Stock W. I.

New Common

Alabama &

and

Selections

Their

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

Week's

Participants

Forum

A continuous forum in which, each

Deb. W. I.

4.8%

,

This

I Like Best

$1.53

8.19

2,107,000

3.52

1.73

3,548,000

5.55

2.00

§6.00

2.00

§35.86

Incorporated

31.86

§3,800,000

National Quotation Bureau

19.53

Established 1913

46 Front Street
CHICAGO

♦Adjusted to present outstanding shares.

t.

§Estimate.

New York 4, N.

Y.

SAN FRANCISCO

Volume 175

Number 5088

.

.

The Commercial

.

and Financial Chronicle

(563)

The

Shady Side of WMT

INDEX

By J. E. LeROSSIGNOL

University of Nebraska

LeRossignol reviews developments and legislation which
led to the proposals for Universal
Military Training.
Analyzes effects of proposals of The National Security Training

Utilities

—Henry Ansbacher

,

page

AND COMPANY

Funds Accelerate

Dr.

Buying

Long

'

;

Cover

THE MOON IS BLUE

have

The Shady Side of
UMT—J. E.

.

to militarism;
(2) its heavy cost; and
(3) its likelihood to prove useless, because of changes render¬
ing training obsolete. Holds Selective Service is meeting emer¬

needed

can

from

come

lSl/z

•—Harold H.

v

it

be

that

we

realize

admitted

that

we

are

and

Guarded
two

and

ducted

The

•j

to 26 year-

to

Selective

is.

of

it

fearing tions and
nothing from favoritism

north

we

of

have

felt

E.

dream

our

world

and

wars,

fessedly
world,

out

to

but preparing

Airplane

the

to

a

Russia, is

of

of

•_

was enacted,
nearly 3,000,eve

Congress passed

and by the time

the

war,

been

trained

15

some

than

more

million

a

and

were

ready for service. Before the end
of

the

about

war

10,000,000

men

inducted through the selec¬

were

large body of trained
instead of waiting for

bring in

duty.

The Act of 1940

1947, but

was

terminated

because of the

soon,

aggressive foreign policy of Rus¬
sia, Congress passed the Selec¬
tive

Service

two-year
men were

Act

of

duration.

1948,

Only

for

ing.

But

the

culminated

actually stopped at the end
of January, 1949. But on June
20,
1950, after the North Koreans,
by Russia, invaded South

Korea, Congress extended the law
until July 9, 1951, and provided
for large and rapid increase in
armed

forces.

Various
in

movement

in

bill

a

to

After

We

Transmission
Texas Gas Transmission

Cover

Transcontinental Gas

7

(Boxed)

Pipeline

22

.__

22

See

It

J.F.Reilly&Co.

(Editorial)

61

Cover

Broadway, New York

BO 9-5133

Bank

and

Insurance

Stocks

27

Business Man's Book Shelf

Teletype NY

6

1-3370

Direct Wires

Philadelphia and

5

Canadian Securities

Los

Angeles

26

Coming Events in Investment Field

Einzig—"Sterling

When the bill
gress in

with

failure.

of

However, by a politi¬
it was tacked on as

Mutual

houses,
ident

June

the

as

18

19.

and

years

bill

both

the

Pres¬

by

1951,

and

"Universal

Our

However,
part

of

it

Houses
Act

of

National

mission
should
a

Armed

Public

five

prepare

to

are

to

was

but

mostly

since

1950,

have

members

broad

a

say,
:

the

Committees

Services

both

of

to report

was

The

recommended
on

in

prin-

page

'

U.

Exchange

Members

HAnover 2-4300

Chicago

-

York

Glens Falls




Curb

Exchange

Street, Boston 8

Hubbard

Teletype—NY
-

New

50 Congress

2-8200

.

-

-

-

Worcester

Patent

B.

DANA

1

'

;

■

Drapers'

'

-

York 7,

N. Y.

Copyright

Every

'

*ry'

,»•

(general

and
Issue

corporation
citv
city

news
news,

news

—

.

-1

Offices:

Chicago 3,

111.

(Telephone:

La

STate

Salle

St.,

2-0613);

Stromberg-Carlson

Dana
•

••

at

8,

in

United

States,

per

U.

8.

Members- 01
per

$48.00

year;

per

year.

•

-

exChanjgei remittances

h

for

eign subscriptions and
advertisements
in

New

*

*

Bought—Sold—Quoted

' *

„

Qf

•

in

year.

Publication.

fhp

made

Works

Subscription Rate.

R9r,v

be

Whitin Machine

New

J"1k ai7'
Noteinn fprnint
Note—On account of the fiuft.,
fluctuations in

clearings,

South

B.

under the Act of March

Other

etc )
eic.j.

135

by William
Company

of
Canada,
Other Countries, $52.00

quotation

Hoving Corp.

Eng-

second-class matter Febru-

Possessions, Territories and
Pan-American Union, $45.00

rate
Other

C.(

1?^2' at the P°st office

ad-

bank

E.

1952

as

Subscriptions

(torn-

market

news,

London,

& Smith.

Dominicn

,

'

and

Monday

every

23>

^879*

* ^

SEIBERT, President

'

Thursday

and
ana

-

,

Thursday, February 7, 1952

vertising issue)
plete statistical

Gardens,

Office

SEIBERT, Editor & Publisher
DANA

;•

:land' c/0 Edwarda

and

COMPANY, Publishers
New

'

>,

state

Schenectady

Weekly

.t^Ctor 2-9570 .to 9376

v

records,

1-5

i

/

CHRONICLE

S.

Park Place,

25

Spencer Trask & Co.

■

.

Reentered

>

.

Di-Noc

on

page 28.

on
;

■

,

COMMERCIAL

WILLIAM

Dictograph

48

and continues

■.,

WILLIAM

York Stock

38

'■■

HERBERT D.

Street, New York 4

Collins Radio

5

Henry A. Long's analysis of portfolio
changes, etc,, starts

cover page

34

FINANCIAL

High Grade Public Utility and Industrial

New

Baker-Raulang

2

Washington and You

The

PREFERRED STOCKS

Air Products

42

Tomorrow's Markets (Walter Whyte Says)

Reg.

Broad

Registration

State of Trade and Industry__'

Published Twice

Members

24

its proponents

as

1-1826

■

20

Security I Like Best

The

on

interested in offerings of

are

33

Salesman's Corner
in

Exchange PI., N. Y. 5

Houses,

speedily to their

Continued

*

Securities

Securities Now

who

outline

40

Teletype NY 1-1825 & NY

44

for UMT to be sub¬

UMT, therefore,

been

Offerings

Securities

Securities

„

men

HA 2-0270

22

to

appoint

*

700,000

Utility

Railroad

Security Training Com¬

program

mitted

law

by both
All that the

President

of

Security

&

47

Governments

on

training

become

V ;',

Singer, Bean
MACKIE, Inc.

5

Report

approval

Congress.

the

Corporation
26

8

Reporter's

Prospective

really did, therefore,

instruct
a

not

*28

Military

the military

could

later

!___

Notes

Our Reporter

was

Training and Service Act."

without

Research

Funds

Observations—A. Wilfred May____

6

passed

signed

was

on

cited

to

The

40

*

»

NSTA

reducing the drafting age of boys
years

Current Business Activity

News About Banks and Bankers

measure

19

14

and

Indications of

in danger

was

amending the
Selective Service Act
by extend¬
ing the draft for four years and

from

DEVELOPMENT
Bargeron

the

rider to Public Law 51, an emer¬

a

gency

ASSOCIATED

17

From Washington Ahead of the
News—Carlisle

it met

from

cal maneuver,

our

that, by the

opposition

general public and

8

Area Reinforced"

before Con¬

came

the spring of 1951

much

8

Dealer-Broker Investment
Recommendations

respective Houses for final action.

extended to

Albany

18

Incorporated

decision.

July 1, 1955.

25

L_

Regular Features
As

enact

law

We

1952—Garfield V. Cox

finally

was

of

Since the first passage of the Act

1948,

(

Pros and Cons of the Gold Standard

pro¬

who

in

rights

Congress,

19, 1951, the

about

&

15

A

•

Not Too Many, but Too Few!

being ready

amendment of June
was

14

__

Universal Military Training, which

a

few
inducted, and inductions
a

were

backed

Service

Babson

Business and Finance Speaks After
the Turn of the Year

raw

made

were

months.

tive service boards.
in

Southwestern Public

13

Closing In!

emergency, we
forces quickly

us

Training and Serv¬

1940,

later,

had

men

1917

war

entered

we

Accidents—Roger W.

The Business Outlook for

we

Selective

drafted. On the

were

Selective

months

WHitehall 4-6551

12

including the Wadsworth-Gurney

the

saved

the

this law

of the second

ice Act

Telephone:

11

Stock Market?—N'. Leonard
Jarvis

Bill of 1943, which came to noth¬

con¬

War,

Service Act
and under

the

Dept.

STREET, NEW YORK

now propose permanent

World

men

let

away!

Tennessee Gas

strong
backing from. President
Truman, the Pentagon, the daily
press,
the Veterans of Foreign
have always hated, as the
and
the
United
States
only Wars,
sure way to
Chamber
of
safety.
Commerce, which,
Forty days after we entered the however, has' reserved its final

000

Year—Raymond Rodgers

WALL

has

a

combat

posals

our

peacetime conscription, which

first

holding
and

us

blues

Obsolete Securities

9

military policy by

our

year or more before

for

were

that

which

6

_

Consumer Spending and
Saving in 1952—Leo Barnes

A-

recruits,
who would have to be trained for

safe.

us

form

reserves

of

communize

draft,

twice, and

to

your

stock

vigorously pushed in Con¬
No
wonder that
our
military gress in the autumn of 1950 and'
guardians, who have always stood early in
1951 ; by
Congressman
for preparedness, are not satisfied Carl Vinson, of
Georgia, and had
with

Davis.

local

strong and growing move¬
army officers
and
looking toward a radical

the draft to

hoping for the best
for the worst.

we are

you're

them

our

we

now

Strength—Shelby Cullom

among

of

of peace by two

former ally, Soviet

if

you

Sell

chase

4

Trust Investments—Marcus Nadler

on

Election

an

What's Ahead for

some

of

there

years

might augment

awakened
from

and

;V/-L

d

a n

need

But

'

which, in time

us

keep

LeRossignol

some

change in

no

vast armies to
J.

a

others

that, there¬
fore, we h a d
no

therefore,

part

.

could

enemy

reach

been

for

ment

us,

long

that

the

on

.

But

and

south

cash

our

Schizophrenia Hits the Stocks—Ira U.
Cobleigh

\

deferments

boards.

to

are

except in regard to exemp--

and

and

Opportunity

09

Emergency Impact

in¬

have done its work well,
and there has been little criticism

b y

Mexico

1,000,000

Service,

so

obsoletes.

.

to

seems

oceans

Canada

about

volunteers.

as

—and

^

'

only beginning
dangerous
it

how

>

drafted

are

dangerous world

a

3

*

Keys to Insurance
Company

Business in

Let

an

Young

old manpower pool.

living in

■

:

.

Public Utility Stocks—A Haven
and

onism of Americans

reserves

LeRoSSignol___;..__.-.

<•"

Commission and points out as factors on "the
shady side" of
UMT's glowing assurances and promises:
(1) popular antag¬

and all

llCHTfnSTEtfl

"

Articles and News

Dean Emeritus, College of Business
Administration

gency

3

York

funds.

.

lormust

THEODORE YOUNG & CO.
40

Exchange Place, New York 5,1LY.

WHitehall 4-2250

Teletype NY l-323«

4

The Commercial and Financial Chronicle

(564)

find

people who hold industrial
on
which* they have good

stocks

Public Utility Stocks—
A Haven and an Opportunity

they do not wish to
seeing the profits melt away.
the other hand, they do not

profits and
risk
On

sterilize the money.

to

want

excellent

By HAROLD II. YOUNG*

who

Partner of Eastman, Dillon & Co.

An
to the investors

answer

wrestling with this prob¬
seems to
be "put money in
are

ber of employees

required to oper¬
relation to
its capacity is much smaller than
in the case of the old plants.
Many electric companies report
that despite the increase in busi¬
ate

modern plant in

a

ness

they have had in recent years
in their number of

increase

the

employees has been very small.
that is what One of the favorable features of
people are doing. That is where the electric business, in particu¬
the idea of a "haven" comes in. lar, is that business can be added
The outlook for the utility busi¬ in substantial volume without a
ness
is
good.
The demand for corresponding
increase
in
the
service is growing and the prin¬ number of employees.
cipal problem seems to be to pro¬
Of course, one of the big talk¬
lem

Members, New York Stock Exchange

stocks"

utility

are finer and stronger today than ever
before, Mr. Young contends that, despite lower dividend yields
and price-earnings ratios, there are still attractive
bargains^ in
utilities. Says utilities securities are a haven against declining
industrial profits due to higher taxes. Calls attention to larger
buying of utilities securities by investment institutions, and
lists several individual utilities, whose shares are now attrac¬

Asserting utility stocks

and

vide facilities fast enough to keep

ing

ahead of the demand. The domestic

their

for
the utilities is
position in respect to Fed¬
business—the backbone of the in¬ eral taxes. When the excess
prof¬
tive as investments.
dustry—continues excellent. New its tax was under consideration
appliances are going on the lines the industry made aggressive and
The situation in respect to pub¬ one of unmitigated satisfaction, every month and this provides a
intelligent
presentations
of
its
lic utility stocks is a little dif¬ despite
the pleasure of having continuing
source
of
increased problem to Congress, and as a
ferent today than it has been at people agree with you.
The dis¬ business as these appliances are
result,
special
provisions
were
times in the past.
There have advantage is that we cannot point in regular use. Industry is con¬ written into the
Act, as passed,
to bargains in the way we could
been
periods
stantly seeking labor-saving de¬ permitting the utilities to earn a
when these stocks were less pop¬ vices and
in which those
introduction of more fair return
on
invested
capital
ular. Yields are lower and priceof
us
who
machinery which means sale of before becoming subject to the
have had cdnearnings ratios are higher than a more electricity to run motors or
excess profits tax.
year ago. However, there are still sale of gas for special
tinuing
faith
processes.
More recently, there has been
in public utilvery good values and yields are
If an
industrial slump, about
another
favorable
development
unattractive only by comparison. which some
ity stocks
people are uneasy,
ha

l\ What has stimulated this de¬

been

v e

"voices

There

mand?

crying

in the wilder¬

at work and

ness."

of them.

stocks

People have
often
prone

with

been

several

are

This ties in

"haven."

a

uncertainties

the

future, especially

utility stocks

it affects in¬

dustrial

have not been

Harold H. Young

or

the

popular
to

not an

prevailing

misgivings

are

but

I

that

exist.

Industrial

know

do

war¬

they

which relates to the electric

should

the

materialize,

cushioned.

are

principally

utilities

They would suffer

the loss of in¬
dustrial business which, after all,
represents only one segment of
the revenues. Furthermore, those

tected
a

from

would

revenues

the

because

and ing

seer,

a

ranted

there
which
notions have pre¬
years

not

all

be

lost
pro¬

are

by rate structures

includ¬

demand charge covering the

readiness

to

serve

as

well

an

as

charge

energy

for actual con¬
Industrial business is

sumption.

negative view
on utility stocks.
These forebod¬
ings of doom have never been their dividends at the end of 1951 their less efficient facilities.
made good and utility stocks are than at the previous year end.
In the electric industry many
finer and stronger today than ever The outlook for the dividends on
companies
are
still
having
to
before.
On the other hand, we industrial stocks is not altogether
operate inefficient plants to carry
find that at present there
is a favorable and the integrity of the peak of business
despite all
strong demand for public utility some of these payments at cur¬ the new
equipment which has
rent rate is in question.
stocks and investors generally* are
been installed.
It would appear
Many people fear a rather sub¬ that this situation
will prevail,
favorable to them.
stantial drop in general business
in many cases, for some time yet.
From the standpoint of people
activity should there be any les¬
like myself the situation is not sening of the national emergency. Relatively Good Expense Control
support

a

This
•An

address

by Mr. Young before the
Boston Investment Club, Boston, Mass.,
January 29, 1952.

situation

caution
many

on

is

conducive

industrial

quarters.

In

some

to

stocks

in

spots

we

Another

feature

of

G. A. Saxton

and

&

Co., Ins

Teletype NY 1-609
70 Pine

St., New York 5, N. Y.

WHitehall 4-4970

SECURITIES

here

economical
the

the

is

opera¬

outstanding

ex¬

difference

in

operating cost of new electric
generating units as against older
equipment. Savings of a substan¬
tial nature
and
or

NATURAL GAS

of

labor.

are

made in

The

of

much less in the

in

the

old

ones.

both fuel

amount

equivalent fuel to

kilowatt-hour

coal

of

produce

electricity

new

in

a

is

plants than

Also,.the

num¬

re¬

was

1951 whereas the in¬

normal

retroactive. to

and

April

1952, however, the

surtax

1,

was

In

1951.

industry will

have the benefit of this tax repeal

for the full year. Companies with
small

is

business

industrial

get the

buyers of this sort than

prevailed for

quarters

stocks

increase

the

in

are

popular.

very

Last year

legislation

think

people
that

there

cal

of

the

ponder whether con¬
tinuing demand from these sources
not put higher grade utility

may

stocks in

a different category than
they have previously occupied.

It

would

demand

certainly

for

shhuld

unless there is

time

increase

in

and

adequate earnings, then the utility

companies have
increases.
are
on

to

recourse

rate

These

companies, by
assured a fair rate of re¬
invested capital. There

varying concepts in different

states

both

in

respect

statute, itself, and
istration

of

as

the

to

the

to the admin¬

statute

by

the

Commission. This angle is one re¬

to

made

the

statement
utilities

are

return.
One
as

to

which

be

can

made

assured

a

and

reverse

utilities

flow

a

into

may

takes place, then

we may need to
reappraise the situation. However,

that

time

is

certainly

here

not

now.

Another consideration is the loss
in favor

the part of preferred

on

stocks.

At

vestors

were

time

one

private

in¬

the backbone of the

preferred stock market but in
cent years

interested in

more

and

were

in

Also,

so.

much less in¬

are

preferreds

than

few years ago.

a

stocks

common

likely to continue

are

re¬

they have become much

they*

This tends

demand in the

more

com¬

stock part of the market.

I have

spoken about the utility

as

"haven"

a

and the title

talk refers also to

my

oppor¬

present. These
opportunities exist in analysis and
are

selection of stocks to get the best
As against fears of lower
industrial earnings,
expectations
values.

definitely for
earnings in 1952. I
are

higher

utility

few, if

see

any,

dividend cuts in sight and, on the

contrary,
trend

expect

toward

There

was

increases

in

have been
to

continuing

a

higher

dividends.

generous

a

number of

1951

some

and

also

there

in 1952 with

more

come.

Alert

buyers will seek the best

certain

a

degree of uniformity
utility company operations so
premium should be paid for a
utility stock only if there is a

in
a

influencing factors
utility stock market;
have important long-

interest

more

insurance

from

stocks

fair

implications, is the increased
purchases by institutions. There
of

funds

industrial

is

run

has been

the

dis¬
recently

returns, quality considered. There

the

of

of

If
are

moves

that

—

the

stocks.

when people

comes

posed

quiring special study but the gen¬
eral

different feeling

a

industrial

tunities which

business

appear that
utility stocks
strong until or

the

continue

toward

of

When

for

observers

stocks

control of expenses have not been
in sufficient degree to maintain

demand

the

way

stocks has widened. Some

common

get very

Rate Increases

chance

a

be enacted, giving
savings banks privi¬
leges along this line. This is typi¬
York

to focus

significant relief.

is

law may

a

New

mon

of industrial business will

passed

was

stocks for the first time and many

normal and surtaxes but even the

large proportion

of

and

group

permitting New York life insur¬
ance
companies to buy common

companies with

a

a

buyers,
of
utility
common

public

stocks

terested

of

as

conservative

among
course,

repeal of the tax will offset sub¬
all

the purchase

toward

common

the institutions

stantially

time. There

some

liberal attitude in many

more

a

most benefit and in some cases the

are

and

sales

to domestic and

customers

of Nov. 1,

turn

amples

UTILITY

as

about the utility picture is
relatively good control of ex¬
penses.
Millions of dollars are

One

on

and other

has

pealed. This repeal was effective

ness

efficient

PUBLIC

commercial

the

tion.

excise tax

of electric energy

law,

new plant, and as this
plant is installed, the companies
get the benefits of most modern,

TRADING MARKETS IN

Act 3V3%

nue

attractive¬

going into

com¬

panies only. In the 1951 Tax Reve¬

crease

companies

earnings, gen¬ the least remunerative and the
erally
speaking,
have
turned dropping off of business would
downward.
Numerous industrial
pdrmit companies at the same
companies were less generous in time to
suspend
operations
of

vailed and have been consistently
cited

am

I cannot undertake to say whether

V

Over

as

companies. I
economist, much less

have been many periods in
some

the

to

as

trend of business in the immediate

to find
why

desirable.

few

a

I have referred to utility

as

reasons

attractive

factors

I will discuss

points

Thursday, February 7, 1952

.

.

.

on

companies,

the part

pension

funds, trust departments of banks,

firm

conviction

that the issuing
outstanding enough to

company is
warrant

it. Investors should

keep
to the ground for
pros¬
pective earnings and dividend in¬
their

ears

creases

these

as

forerunners

of

are

usually the

modest

price

in¬

Values should be analyzed
and
compared
with
a
careful
watch for issues which are out
creases.

Private Wire Connections

to

Philadelphia, San Franoisco and Los Angeles

of line.

We maintain markets in

'

Utilities

as

Institutional

Investments
One

thing which is going

the present time is

Public
INVESTMCNT

AND

*U5INE$*

Utility

COMMENTARY

at

on

lengthening of

lists of utility common stocks
ap¬
proved for purchase by various

institutions.

Less

seasoned

Continued

Securities

on

stocks

page

20

GULF SULPHUR
•

Background material

•

Analysis of 47 Canadian gold mines plus field trip to Homestake.

•

The Griffith Letter for
We
to

will

accept

to

prepare

one

telephone

you

year.

orders

for balance of 1952.

The

to

speed

this

timely

10c par

corporation

8. tARRET GRIFFITH AND COMPANY, IMC.

i-i'-f
COLORADO SFRINS5, COLO.

OF DELAWARE

FIRST BOSTON

service

you.




CORPORATION

ALL for $100.

I'OO

Broadway

Boston

•

NEW YORK 5

Pittsburgh

Cleveland

•

Chicago

value

BOUGHT—SOLD—QUOTED

WOrth 4-4000

Philadelphia

San Francisco

peter morgan & co.
31
Tel.:

Nassau Street, N. Y. 5

Dlgby 9-3430

Tele.: NY 1-2078

Volume 175

Number 5088

The Commercial and, Financial Chronicle

...

(565)

5

/F
Steel

The

Production

Electric Output

Carloadings
Commodity Price Index
Food
Auto

and

Observations.

Retail Trade

State of Trade

Industry

Price

..

Index

=r-

Production

By A. WILFRED MAY

Business Failures

Resuscitating the Stockholder
The

share

Practically no change in over-all industrial output for the
country-at-large occurred in the period ended on Wednesday of
the past week.
Advances in some industries were offset by de¬

New

clines in others, but with the aid of many defense orders,

—papet.

gate output held about

even

with the high level of

aggre¬

Cotton

and

York

Cotton

latest week for which

the

data

Jan. 5, initial claims for unemployment insurance benefits dropped

3%, but
were

were

Steel
to

higher than

12%

15% above

a year

Continued claims

before.

year

a

ago.

ingot production advanced for the fifth consecutive week
of

100.1%

capacity. This was only fractionally below the
all-time high point reached six weeks ago.
new

(1952)

victim

of

as

if the steel industry were going to be the

giant

squeeze play—with labor on one side, govern¬
other and steel companies in the middle, according
Age," national metalworking weekly. Some Wash¬
ington circles were quite sure the steelworkers would get an in¬

ment
to

on

the

a

the

"Iron

of 15 cents

crease

hour

an

or

more

after window dressing before

the Wage Stabilization Board had been completed.
But this increase would apply to the base rate. After suitable
adjustment in the 32 different wage classifications, it would be
found
an

that

hour.

the

increase

actual

This Vk

late in the game,

would

really average

18 V2

cents

cent joker in the wage deck always shows up

this trade weekly observes.

price relief until higher labor costs become an actual fact
danger of a strike. Steel companies will not agree

increases the

any wage recommendations unless they stand a chance of re¬
couping direct labor costs through higher prices, "The Iron Age"
points out.

cover

the

steel

get enough price increase to
the higher wages—no matter what route the Administration
take—there

last of this

month,

or

will

be

steel

a

It would

strike.

come

the

in March, declares this trade authority.

But, before that happens, there is a strong chance the squeeze
play may be completed. This would call for labor getting its 15
cents or more per

hour, and steel companies falling short of get¬

ting what they consider to be the direct costs of such
it continues.

an

increase,

1

If

history repeats itself, as expected, this trade journal asserts,
the sixth wage round is a practical
certainty. It will be accom¬
panied by higher steel prices, possibly to the tunfc of $5 to $7 a ton.
Industry sources say that prices would have to be raised $6
$8 a ton to cover a 15 cents an hour wage boost. Adding $4 a
cover

Federal

other cost increases under the Capehart

Guidebook
Income

to

New

Taxes

Partnerships

and

Residents

and
Monatt

M.

State

York

Individuals,
Fiduciaries—

on

Samuel

Nonresidents—

Practical

tions—H.

Credits

Collec¬

and

Goldstein—Practical

B.

Credit Publication

Ninth

Co., 143 North
Newark, N. J.—

Street,

1951

The

Market

Year¬

(in International Currency)
Pick—The Roy Bernard
Co., Inc., 14 East 62nd Street, New

—Franz

York

page

37

21, N. Y.

120 wall street.

new

Associationpub¬

1). Although Mr. Lyon treated only a rela¬
tively narrow segment of the problems in¬

volved, and the public highlighted out of con¬
text
his
criticism
of
"speculative" mergers

(misunderstanding,
learned from

too,

as

this

writer

San Francisco Analysts
Elect New Members

the talk nevertheless constitutes
of

cosm

useful micro¬

a

situation

a

crucially important to
today's financial, investment, and even political
worlds.

Today's Prevalence of Discount

as

Throughout today's financial world, abroad
well as in the United States, discount per¬

vades—in direct contrast to the

announced

today
following

the

of

ing

company is involved, conceiving of the whole as being worth
less than the sum of its parts has been
strikingly demonstrated in

the actual

G.

Membership:

1

A

■:

investment companies.

issues, not enjoying the benefit of sales

we

buying premium of 9%

a

at premiums

benefit

Then

there

of

for the open-end funds,

so

is

columns—giving the buyer the

wiping out the management expense.
the

miscellaneous

holding

School

Electric

&

of

Bell,

on

,

such

as

page

16

the
We

are

pleased to

announce

that

Edmond

ROBERT A. TORPIE

is

now

associated with

our

Membership: Profes¬
Knight Allen,
Stanford

L.

company,

Continued

Associate

Graduate

Many of these
which readily

ranging from 15-35%;: such market pricing—as

have pointed out in previous

concrete

or

pressure

new

Stephenson & Mansfield.
J.

-■

••

continuing demonstration of this discount situation is fur¬

nished by the closed-end

Blackburn, Walston, Hoffman
Goodwin; Lewis P. Mansfield,

&

occurrence of dissolu¬

increasing the aggregate market pricing of the "pack¬

age."

members to the organization:
Regular

May

of the 1920s.
This applies to all relationships between, market
price and discernible asset value. Where the medium of the hold¬

FRANCISCO, Calif—Wil¬
liam P. Held, President of the
Security Analysts of San Fran¬
has

A. Wilfred

premium days

SAN

cisco,

has

personal discussion of the mat¬

a

ter, much of the author's intended meaning),

secures

Gas

engineers

Bankers

p.

sell

Donald

COVERDALE & COLPITTS

State

the utilities field in recent
years,
tion per se

•

Black

York

lished in full in the "Chronicle" Jan.
31, 1952,

book

sor

on

brought to the fore by a recent speech made by New
Superintendent of Banks ("Bank Earnings, Book
Values, 'Windfall Profit' Mergers," an address by William A. Lyon
before the Annual Mid-Winter Meeting of the
State

Commerce

—

Clearing House, Inc., 214 North
Michigan Avenue, Chicago 1, 111.
—paper—$3.00.

Amendment,

Continued

consulting

on

Taxes—

ing House, Inc., 214 North Mich¬
igan Avenue, Chicago
1, 111.—
paper—$3.00.

election

to

to

industry doesn't

decides to

ton to

Taxes

Special Emphasis

paper—$5.00.

to

If

With

California

Russell S. Bock—Commerce Clear¬

Insistence of stabilization officials that the steel industry can¬
not get

to

Relationship

.

This week it looked

is

York's

New

a year ago.

available, that ended

are

—

Exchange, 60
Street, New York 4, N. Y.

Beaver

Guidebook
In

Futures

Cotton

"worth-more-dea,d-than-alive" condition of today's equity

Trading Department

Business;

Coast
Co.;

Counties

Richard

J. F. Reilly & Co.

I.

Buckwalter, E. F. Hutton & Co.;
Truman W. Carrithers, Davies &

Incorporated

Co.

NEW

YORK

york

Mayer & Walker With
We

are

pleased to

announce

that

First California Co.
(Special

samuel

brown

p.

LOS
E.

and

have been admitted to

partnership in

L.

our

firm

Financial

Chronicle)

Calif.—Ralph
L. Walker and

Witte

have

with

sociated

warfield

harold

The

Mayer, Allen

Grant

g.

to

ANGELES,

First

become

as¬

California

WE ARE

PLEASED TO ANNOUNCE THAT

Company, 647 South Spring Street.
Mr.
Mayer was formerly with
Paine, Webber. Jackson & Curtis
and

George

w.

George

H.

John

1

Miles

c.

george

William
february

1.

Mr.

burgess

farnsworth

p.

officer of

Co.

and

Durst,

Mr. Roy Desmond Robinson

Inc.

with

Gross,

prior

thereto

of

london,

england

Floyd A. Allen

Co., Inc.
HAS BECOME A GENERAL

PARTNER IN OUR FIRM

burgess

Dobbs & Co. Will Admit

a. Gordon
,

&

an

&

was

was

&

Kennedy
V. t.

1952

Walker

Rogers

E. Slater

augustus

Waggenseller

Burpee

~

Three

Partnership

to

Dobbs &

Announcing the removal of
to

new

and

our

offices

larger quarters at

Co., 50 Broadway, New
York City, members of the New
York
Stock
Exchange, will on
Feb.
18
admit
to
partnership
George A; Hussong, John J. Langan and R. Glynn Mays. Mr. Mays
is office manager for the firm.

WE ARE PLEASED TO ANNOUNCE THAT

MR. Howard C. Davis
formerly

of

guaranty trust company

52 BROADWAY
NEW

YORK

4,

N.

Oppenheimer Branch
Oppenheimer &

Y.

Street, New York

Co.,

new

telephone and teletype numbers

are:

Stock

have

office

opened

France,

BOwling Green 9-5577

NY 1-3134

24

an

NOW

ASSOCIATED WITH

US.

Broad

Exchange

Paris,
with M.

at

Rue Fedeau,
Montefiore

Frederick

IS

*

new york

City, members

of the New York

Our

25

'
of

as

MODEL, ROLAND & STONE
Members

repre¬

New

York

Stock

Exchange

sentative.

76 Beaver Street. New York 5, N.

.

j

INCORPORATED

(Special

to

The Financial

'

i

•

'

* t '




is

• '

r

Chronicle)
february

February 4, 1952

Y.

With Waddelli& Reed

STANLEY PELZ & CO.

1,

1952

LINCOLN, Neb.—Jesse Pickard
now with Waddell & Reed, Inc.,

Barkley Building.

-

6

The Commercial and Financial Chronicle

(566)

1950

Keys to Insurance
Company Strength
By SHELBY CULLOM DAVIS*

Formerly Deputy Superintendent of Insurance of N. Y. State;
Partner, Shelby Cullom Davis & Co., Members N.

Y. S. E.

five elements as
health: balance
sheet, income accounts, management, government supervision,
and stockholder appraisal. Holds they are more important than
traditional ratio figures. Urges importance of thoroughly going
balance

evidences

of

sheet and

income

statements.

sheet and operating

1951

respectively. The had published. This was further tutory underwriting loss of $2,796,000, clearly; a danger signal
picture of health damning evidence.
} 'Y
What had the stockholders been inasmuch as the entire surplus to
be labelled Mr.
America
It
among insurance
com¬
doing all this time? Apparently policyholders was $2,650,000.
panies
if
such
a
crown- were, they
had not been asleep and was easy to see that another such
the

.

which 'might

probably had begun to year would wipe out the com¬
In addition, be¬
In 1946, before this report pany's surplus.
company to publish its financial of the Insurance Department ex¬ cause of the inflation, claim set¬
became
report this year and which youj aminers
available,
the tlements became more costly. Cas¬
may have noticed
in the news-i. stock sold as high as 9. In 1947, ualty claims, as you know, require
awarded.

chosen

are

everyone

stand.

I

clues

many

was

to

in¬

can

so

1949, Company X, which was a
fire insurance company, presented
balance

sheet

with

Total

liabilities

a

Demonstrates

they

are

of

assets

were

only $5,959,000, leaving a surplus
as
regards policyholders—which
is really stockholders' money but

The

speak.

to

think

At the .end

of

$7,962,000.

stock¬
the for¬

protection for pol¬
$2,102,000. Seem¬

icyholders—of

they

even

worry.

its

ingly policyholders' surplus was
men but they themselves
about 35% of total liabilities, in¬
forget—they watch trends,
dicating 35% additional protec¬
clues or tools read reports and speculate about
tion. And yet the patient died the
with which we the future. And they express their
following year. What went wrong?work.
opinion in the market for the
There were many things wrong
The first company's
shares, from ten to
which the balance sheet on; its
tool is the three every day, Saturdays, Sun¬
face does not indicate.
Only by
company's days and holidays excepted. Day
balance sheet. to day and week to week fluctua¬ going "behind" the figures ofj the
balance sheet, particularly on the
On
the
left tions are unimportant—but a pro¬
assets side, could potential trouble
hand side are
longed sinking spell when a com¬
be detected. The first item "bonds"
the
assets
pany's stock goes almost out of
of $2,818,000 sounds very good,
what the com¬
sight is a danger signal. It prob¬
snug and secure—until one begins
pany
owns; ably means, as they used to say
to poke behind the word "bonds"
in "Ole Man River"
and
on
the
somebody
and find out what these bonds ac¬
right hand side "must know something," it just
tually were. These days most of
are the liabili¬
doesn't keep "rolling along."

going to mention five

am

limb,"
holders

first

with; the

wrong

picture in Exhibit A?

results of three companies.

health — clues
follow and under¬

company

been

the

was

about ten days ago.

which is added

There
surance

it

has

it

Actually

because

Now what

five-year balance

strength and weakness with

is

papers

Insurance expert offers scrutiny of following
basis for appraisal of individual company

behind

and

third

Thursday, February 7, 1952

...

.

some
came

low

end

range

was

of

1 V\.

In

37/s

its high

1949

1% and its low

These

It

be¬

claim

to

at

reserves

the

(the balance sheet
item is "Losses & Adjustment Ex¬

was

less than $1 a

was

add

to

necessary

reserves.

1950

of

%. The stockholders were penses") was $6,497,000. A year
thinking less and less of the com¬ before it had been $5,066,000—and
this additional $1,431,000 had to
pany's outlook.
With all four of our tools show¬ come from somewhere, which was
Company Y was
ing signs of danger, it was not from surplus.
killed by Korea just as surely as
necessary to go much further. De¬
spite the statement of surplus to if one of the enemy's shrapnel had
policyholders of more than $2,- lodged in its heart.
share,

.

gotten

000,000

don't

the

company

—

higfi of

a

low of

for settlement.

time

and

iy4, quite a drop. In 1948
its range was a high of 21/4 and a
a

at

who

end

was

1949,

the
in

its

affairs

plying the five tools.

But

ceding year, the demise must have
as quite a shock.

come

underwriting

before

the

And

this

published.
for it

of

aware

trends

everything he read, in
particular the figure of more than
$2,000,000 surplus as regards pol¬
icyholders at the end of the pre¬

turn

be

must

ap¬
one

if

believed

Let

is why the five tools are
always sufficient to detect
danger in its early stages.: One

closely

who had constantly been

and

That

not

surprise to those

no

followed

of

operations

ceased

1950. This

—

was

figures
is

are

possible

generally known in the

insurance district that

automobile

lines turned very sour in the sum¬
mer of
1950 and this particular

had 65% of its business

company

in automobile.

Exhibit B,
It is not a pleasant task being
Company Y, a mortician and
conducting post¬
however, differed materially from mortems.
Besides
in
insurance
Company X. It was a casualty these are the
exception—the rare
company, in the first place, and in
exceptions—rather than the rule.
us think of bonds as U. S. Govern¬
the second place it had already
For our final exhibit, Exhibit C,
And, finally, our fifth tool is ment bonds—but less than half of
gotten into sufficient trouble by let us turn to a
the insurance company's manage¬
company in the
these bonds were those of the 1947 to go to the RFC for
$5,000,- very pink of financial condition
ment
itself.
No
company
ulti¬ U. S. Government. Only $450,000 000 of funds in order to
keep go¬ and see just
why this is so.
mately can be
better than its of these bonds were of states and
ing. Furthermore, there was no
management. Knowledege of municipalities, which are also high
question that the management of
A Company "In the Pink"
management is all-important. Not grade.
More than $1,000,000 of this company was doing its level
First of
all its balance
sheet
just that part of management, these bonds were in miscellaneous best to
keep the company afloat shows a
surplus as regards policy¬
whose job it is to meet the public industrial
companies,
many
of and
its
integrity was unques¬ holders of
$185,195,000 and if we
and who know how to put their them affiliated
companies, which tioned.
It furthermore had
the total up all the liabilities we find
best foot forward—but the men it was difficult to know
anything support of the Insurance Depart¬
they come to only $84,702,000. So
behind the men.
Men make up about. The value of
many of these ment and the good wishes of the
the policyholders surplus exceeds
the figures, and whether the fig¬ bonds was
extremely questionable. entire insurance fraternity. What
all liabilities by 120% which is a
ures
are
conservative or overly
The next item is "stocks." We went wrong?
tremendous cushion.
optimistic depends upon the judg¬ are
apt to think of stocks owned
At the end of 1950 the company
ment of the men responsible. We
Turning to the asset side of the
by insurance companies as being reported a surplus as regards to
live in an age when news com¬
balance sheet the statement pub¬
"blue chips"
such as American policyholders of $2,650,000. That
lished in the newspapers revealed
mentators get "behind the head¬
Telephone, duPont, General seems like a lot of money. It was
lines"
and
"Bonds & Stocks" of $249,902,000.
writers
get
"Inside
Motors, General Electric and the more than 20% of total liabilities
If we consult the company's re¬
Europe" and "Inside the U. S. A." like. But
going behind this item which might have seemed an am¬
To understand an insurance com¬
"stocks" ope found nothing of the ple cushion. The assets on the left port to stockholders we find these
bonds
and
stocks
were
of
the
pany's strength one must get "in¬ sort.
Only one-third of the $1,- hand side of the company's bal¬
side" management and "behind"
377,000 was in public utility, bank ance sheet were "clean." Almost highest grade, U. S. Government
the figures.
bonds, bonds of well known states
and railroad stocks with which the all of the bonds were U.
S. Gov¬
us

to

now

another

sad

ernment

bonds;

case.

—

ties—what the

Company

Shelby Cullom Davis

That lit¬

owes.

tle

difference
between N and E—owns and owes
—is one of the keys to insurance

strength.
The

_

second

tool

pany's profit and

is

the

loss

com¬

statement

income

or

account.
One year is
enough, for insurance operates
in cycles. Five years should be a
not

minimum.

It is

certainly impor¬

tant to know whether
is

making

shirt."
to

money

There

this, such

company

"losing

several

are

as

a

or

its

angles

the difference be¬

tween

statutory underwriting re¬
the so-called adjusted
underwriting results which takes
into account the change in the
sults

and

premium
The

reserve

third

friend

the

—and

I

equity.

tool

is

our
good
Department
exactly that. The

Insurance

mean

Department is the friend in court
of the
-policyholder, the vigilant
protector

strength.
tion

are

of

company

Its reports of examina¬
required reading when¬

there

ever

insurance

is

question

any

of

solvency.
The

fourth

Now
cific

in

kit

our

turn

to

some

spe¬

investor

where

these

five

two-thirds

tell the

story, sometimes it is

to

use

nec¬

the body of the company's stock¬

Remember, they are con¬
stantly appraising their company's
strength. Their money comes after
the policyholders'—it is "out on a

is

filiated

had

Tale,

of

Three

Insurance

Companies"

or

which
whose

"reinsurance recoverable" of $673,000 was 'somewhat suspect when
one

behind

got

might be termed

"A Tale of Three Insurance

to

figure.

this

the

partment that
surance

I offer for your attention three

Exhibits which

bulk

doubtful. Even the item

was

submitted
"A

The

in the stocks of af¬

companies, stocks
ready market and

no

worth

familiar.
was

One

found in the Annual Statement

all five.

is

holders.

with

was

domiciled

pany

Insurance

rein¬

small

a

in

De-r

this

of

some

com¬

China

which little information

about
avail¬

was

York

before

the

Association,
City, Jan. 28, 1952.

panies."

able; other reinsurance was with
a small
company in Cuba; a great

no

deal

of

with

a

about

Com¬

Alas, two companies are
longer among the living, hav¬
ing departed this financial life in

reinsurance

small

known.

here

on

were

of

was

mark

the

of

item

$268,000.

the

names .;

balance

good grounds for

suspicion

that

well with

Company X.

The

Stocks

much

behind the

side

asset

sheet there

Bank and Insurance

as

receivable"

by going

Philadel¬

question

well

as

—

the

on

not

Another

"notes

Thus

which

placed

was

in

mutual

A
gave

all

might

Income

not

be

been

but

thermore

writing
worse.

Account

If
of

the

the

income

account

an.

the "blue
est

analysis

but

is

this

partial answer since the
registered improvement

a

company

in

its

every

loss

and

latter

until

year

figures

ratio

expense

until

1950

in

of

1951.

available

Underwrit¬

ing

results also showed steady
progress.
Stockholders appeared

low

of 2%

New

in 1947 at the time of

Carbide

and

but

also

active

an

included

50%

owns

Niagara

one

CORPORATION
•

NEW YORK 5

Pittsburgh
Cleveland

.

•

Chicago

pany

market.

since

of

Continental

American

Fire

Eagle,
Fidelity
&

and

that
and

Reports
reveals

owned

in

of

these

the

by

general

Philadelphia

San Francisco

1946

-been

the

of

Post-Korea

What happened was

rekindled

burst
trend

inflation,

a

Inflation

strong financial

a

The

Korea, the
fresh out¬

of reckless driving, upward
in accident frequency and
The results of

companies,

became

known

for

Company Y when its 1950 income
account
ago.

became

available

a

The statement showed

a

income account

also shows

consistently profitable operation.

The
been

loss

and

ratio

expense

well below

100%

Including the change in premium
equity, which means the
prepaid expenses such as commis¬
reserve

sions and taxes

ten, the

premiums writ¬

on

company

has made

of

the

the

states,

the

one

a

Continued

sta¬

on

page

this

by

New

York

Stock

&

Co.

Exchange

Underwriters and Dealers in

most
com¬

learned that in

company's

reduced

surplus

$534,000

triennial

as

INSURANCE STOCKS
Oldest

had
the

Stocks.

Specialists (with Predecessor Firm.) in Insurance
Serving

Dealers

and

Institutions

since

1927.

examina¬

In other words the Insurance

Department examiners found that
the company's surplus was actual¬

ly $534,000 less than the

money

year

Shelby Cullom Davis
Members

company

110

WILLIAM

has

each year.

Department

read

examination

result* of

tion.
.

to

to

Continental

Fur¬

comoany's under¬
steadily getting

and

com¬

similar

assets

condition.
Effects

by insurance examiners from

several

WOrth 4-4000

went

Busi¬

Casualty. An examination of the
panies

pened to change the situation?

International

enjoys

and 3 in 1948, 63/4 and 27/s

What hap¬

National Steel,
California, Union

Stocks of affiliated companies are

Annual

and 7 and 3V2 in 1950.

in

Oil

Machines. Every single name
the list is not only well known

the RFC loan, traded between 47/s

in 1949

Jersey,

were

Standard

as

ness

satisfied with the way affairs were

going, the stock having reached its

stockholdings

companies

Standard Oil of

on

not

were

February,

good

some

chip" category. Its larg¬

common

such

these

and

municipalities and

grade railroad bonds and stocks of

every

Its surplus to policyholders

Insurance

recent




in

in the past five.

was

lies in

steadily going down. Another
big question mark there.

FIRST BOSTON
100 Broadway

100%

answer

only

were

it is said in banking.

as

The
of

very

items

was

The

Boston

above

one

were

the

Korea, which affected all casualty

company's expense and loss ratio
year

"good"

and

there

All

stocks.

cost of settlements.

study of the income account
further cause for alarm. The

had

few

as.

phia

♦A
talk
by
Mr.
Davis
Greater New York Insurance
New

us

tools, balance* sheet, income ac¬
count, Insurance Department,
stockholder appraisal and know¬
ledge of management, might be
helpful. Sometimes one tool will
essary

tool

let

examples

STREET, NEW YORK

Telephone BEekman 3-0626

•

38,

N. Y.

Teletype N Y 1-384

•

0

36

-

<t

Volume 175

Number 5088

,

v.

,

The Commercial and Financial Chronicle

.

(567)

Business and Finance
The
ions

FORECASTS

BUSINESS

MORE

..

following

are some more

side, life insurance companies dur¬
ing the past two years have experienced a gratifying
increase in net income.
After many years of declining

of the opin¬

the business outlook for the

on

present

earnings from operating under
that

and

Thursday, Jan. 17

subsequent issues. Remaining unpublish¬

ed statements will be
J.

given next week.—Ed.

the

AT WOOD

L.

maintained at

was

outbreak

bring about
President, North American Aviation, Inc.
Under

the

that

different from the all-out "go-ahead"
that prevailed just prior to World
•

In this instance it has been

the facilities

production at
actual

and

production.

Capacity

should enable

unbalanced

not be

may

earnings

as

as

high price level, business

true in

previous

that

peacetime standards and

This policy is sensitive to changes in

ous

gage loans should absorb

picture, and efforts
accelerate present schedules could

to

at any

In all probability
factor in such efforts

limiting
would
be
availability

are

materials
in short

which

under

our

J.l_.

rtiWuuil

invest

money to

in recent

as

insurance companies

present

side

of

the

For

years.

Of this amount about $2 ^

supply although critical airframe machinery

improve existing airplane designs and to develop new
designs to the point of operational readiness. As a result

committed

been

seek

imnortant

an

of

source

reduced

to

about

funds

for

means

new

compares

to

has

accompanied

the

tighter

long-term mortgage market.
In

of value for every

view

vestment

a

financial standpoint, the
industry anticipates a
continuing increase in sales as the production program

gathers

momentum.

year

new

The industry's net
earnings, how¬
will be sharply affected by the excess profits tax
provisions, and may actually be reduced during a period
of increasing sales.

of these facts, coupled with the broader in¬
opportunities of insurance companies through

fields, it would
for

that 1952 should be

appear

institutional

investors.

Insurance

good
companies
a

should
take
advantage
of
these
opportunities
to
strengthen the quality of their portfolios and improve
yields and thus be in a better position to serve their

ever,

policyowners and the general public

over

to years ahead.

W. E. BIXBY

What most Life Insurance
the early months of 1952 is

Insurance

;

Company

a

appear to expect during
continuation of the last six

With

military and civilian requirements continuing to
the oil industry looks forward to a substantial in¬
crease in demand for its products during 1952;
Domestic-

months of 1951.

grow,

Obviously a radical change in the inter¬
national situation might
bring about an equally abrupt

demand

alteration of the business picture and
in

the

E. F. BULLARD

President, Stanolind Oil and Gas Company
men

of

event

a

move

out

of

will be up about 7%.

as

Should

there be peace there is a
great un¬
fulfilled need for life insurance
pro¬

production will not experience that

tection

for three

by

those

whose

great

military

duties have made life insurance hard
obtain, and it is well known that
war

incentive to
well

as

stimulates
save

the

popular
in life insurance as

the

situation,

Vv.

£..

in

emphasis

J3.XD/

be
on

the

life insurance.;

1952

a

there
little

.

savings

It is

now

of
E.

seems

be no violent tax
that life insurance's normal share
of

dollar will net the
A

increase, it
savings

the

industry an increase in new business.
great deal has been said
recently about what some

term, the Blue Collar

Market—the market for Ordinary
life insurance that has
developed among those of very
modest
in

the

same

means

whose

incomes

have increased
sharply
Now, with higher incomes those
afford monthly, semi-annual or
annual

last few years.

people

can

premiums.




F.

Bullard

uids

thereby reducing in

our

civilian

our

There is
meet

no

..in

economic

our

ing

us

and

surance

our

repeated

being

bracket—$25,000,000 to $50,000,000 la

ductive facilities

that

eventuality,

Right
are

now,

even

being used

As in¬

we must look ahead
though our own pro¬

more

and

more

for mili¬

tary output, we have new products and new models on

drafting boards and in our testing laboratory ready
help take up the slack when the nation no longof
needs guns and bombs.
Every manufacturer must know his markets to main¬

our

to

tain

his

competitive position in peacetime.
Now is thi
he must explore adjoining markets to mal>
use of his plant, manpower and distribu¬
tion facilities and plot the area where his production
may be sopped up in our half-war economy and its suc¬
cessor to avoid a condition of inadequate distribution.
As
for manpower, the manufacturer who diversifies his pro¬
duction program is in far better position to stabilize hi*
working force than the manufacturer whose fortune is
time when

the maximum

bound

closely to

a narrow

D.

C.

production

program.

EVEREST

President, Marathon Corporation

Regardless of the many factors affecting general busi¬
ness, the consumption of paper and paperboard and till

products made therefrom will in 1952 exceed

any

in the history of the United States.
new

uses

pre¬

ThrouJT

and the increase in the use

of products

previously developed ey.J
rapid increase in population,
the consumption of tonnage required
due

to

to

meet the demand

1951.

of

paper

creased

is bound to

ex¬

Since

and

ever

1945, consumption
paperboard has in¬

50%, and

now

exceed;*

over

400

num

in spite of the great growth ill

pounds

per

capita

an¬

per

population during that period of tirr.ro.
people realize this.
Government
expenditures will

Few

the demand for crude

*

care

an

a

19.8%

increase

over

the previous

not

yet available, but there is
to believe that additions to our proven re¬
are

will be at least

as

sizable, and probably

more

1952

\

depends

chiefly

upon

how

D.

much

C.

Everest

with

meet

heard

the

mills

being

civilian demand.
of

any

major

No

able
one

to

eve;?

government

returning any appreciable amount of its appro¬
priations to the Federal Treasury. 1952 is also an elec¬
tion year and it promises a hot campaign on the part cZ
both Republicans and Democrats.
This always bring*
about
increased use
of newsprint, groundwood booli
agency

papers and

so,

than in 1950, in spite of record production.
The extent to which these new discoveries will be de¬

during

fere

all-out war, there would neces¬

of.

fields, with
Final figures

every reason

great effect on paper and pa¬
perboard consumption and may inter¬

question that the industry will be able to

new

veloped

is

factories stranded in midstream.

against

plan ahead.

growth,

Nineteen fifty-one was a record year for the discovery

serves

Evans, Jhv

sales—is that the world tension will suddenly ease, leav¬

ceed

'

year.

S.

One of the fears nagging at the minds of businessmen

Y

will drop off.
abnormally high
but
U. S. sources is being

sarily be civilian rationing in order to fulfill military re-*
quirements.
Essential civilian needs would, of course,

of

Edward

seemingly
wood battery

■

demand for its products during the coming

In the event of

be taken

baskets.

make such

have

every

year.

company

production.
That story
'
■ v" :"'V
/. V, 1

""" '■

today.

this

some measure

our

policy of put¬

homes, trucks and buses, and
car loading equipment.
During World War II we were making 54 component)
for all branches of the military service.
Our aircraft
and stampings divisions took precedence over most

vious year

continued

his

railroad

been

exhibit

in

things as
separators, heaters for

the world supply of petrol¬

will

go

hasn't

rise

severai

in

eggs
we

a

unrelated

petroleum.

.

there will

ting

Normally,

by the Iranian dispute.
(3) Production of natural gas liq¬

well known

although their disposable incomes
increased, the
people of the United States elected to save a
larger pro¬
portion of them during 1951 than
during 1950. As a mat¬
ter of fact, it was a
larger proportion than they had
saved at any time since 1946.

year

on

he

ink

in

years

Imports of crude and products
country will resume the
upward trend which was interrupted
into

that

election

as

red

followed

(2)

will

Assuming that this preference will continue at least
during the early part of 1952, and that because it is an

many

have

is adjusted.

eum

more

aspects

For

exports

have

drain

eased

savings.
Without radical changes in the in¬

ternational

the

because of the Iranian situation,

other modes of

probably

This will be true

reasons:

Our

These

to

all-out

increase.

an

(1)

manpower

because

eter.

we

great

vious year, it still represents a siz¬
able gain in total barrels.
In all probability, domestic crude

twilight zone into all-out war, or
the prospects differ mainly in

peace,

character but not in degree.

While this is not

watched

the 8% gain of 1951 over the pre¬

as

the

skilled

jobs

company's corporate business barom¬

and

liberal investment statutes and the development of

more

program

enough work to keep them busy; he

19%

investments is the slower rate

his

other

has

outlets

regardless of the reluctarice to take losses that further
liquidation would involve.
Another factor tending to

dollar expended.

President, Kansas City Life

watched

that

purposes

curtail insurance company
of loan prepayments that

stop

the

to

In fact for the industry as a
security holdings have been

15% of assets which

medium-sized

to

jacket; he has watched the defense
orders go to his competitors; he has

investment

new

the

profit side of his ledger.
poorly equipped and slow
on the
uptake, he has found himself
caught
in
an
economic
strait-

capital

Many companies have reduced
their Government securities to about the minimum they
wish to hold for liquidity or primary reserve

recognize the responsibility that this position carries—
responsibility for conservation of manpower and mate¬

From

to

pressure

EVANS, JR.

If he is

held at the end of 1939.

cordingly, even under present schedules the aircraft pro¬
duction effort will occupy a place as one of the
leading
segments of the national economy.
As an industry, we

measure

the

and

during the last few years.
whole, U. S. Government

Employment in the industry has increased consider¬
ably during the past year, and it has been estimated tnat,
including all parts and components manufacturing, it
may reach the million mark by the end of 1952.
Ac¬

full

for

S.

civilian-military production
to

thereby relieved.
In the second place life insurance
companies and other
institutional investors appear unlikely to continue the
heavy liquidation of government securities which has

development work, we will be produc¬
during the coming year and
in 1953.
Fortunately there is no complacency concerning
technical superiority either in the
industry or in the
air services, and I believe that this is one of the most im¬
portant factors in our future air security.

a

*

large part of the prospective excess of income over dis¬
bursements of life companies for this period is already

aircraft

delivering

This

an

manufacturer is equipped ami
making baby buggies and start making
bomb castings, he can, with luck and
ingenuity; convey
the
exigencies of a fast-changing

a

of this intensive

rials and for

If

ready

billion should be taken down

within the first six months of the year.

improved

E.

entering 1952 with commitments
probably around $4 billion.

are

to

President, Evans Products Company

for loans and investments of

schedules

years.

in

year

necessary and restrictive government controls.

thing life

one

in recent

gen¬

mort¬

new

found

reserves

1952, provided it is not hampered by
shortages of critical materials, increased taxes, and un¬

postwar

long-term

could govern in some cases.
One very encouraging fact is that during the past
year
of partial mobilization there has been continued effort to

ing

excellent

market it appears evident that life insurance
companies
and other financial institutions will not have-as much

of

even

the volume of

significant development in 1952.
On
so far, it is
potentially one of to

a

Over-all, the petroleum industry looks forward

the amount of funds allocated

Looking at the supply

engines,
electronic apparatus, and the various
other complex items of equipment
and

biggest oil

by institutions and others for such investment.

time.

the

of the

years

incidentally

witness

the basis of discoveries

into profit margins, there
funds generated from the retained

many

was

the international

occur

should

period. Although new construction, particularly home
building, is tapering off, the level is still high by previ¬

to adjust many
now
exist.

us

factors

As long as this is true, the effort in the field
synthetic fuels should be confined to research and
pilot plant levels.
The Williston Basin,
of

carry

limited greatly by shortages of crit¬
ical machine tools, but the ensuing
year

petroleum.

by other groups

economy.

At the present

developments. The large
fields, particularly vast

oil

new

the Williston Basin in the Dakotas
aruj

as

Montana, reflects the industry's ability to con¬
supplying all our needs from, reserves of natural

tinue

taxes and higher costs cutting

still

is

our

that received

such

areas

Eastern

and financial institutions

savers

with

line

number of discoveries of
new

Korea, but it also has begun to

return to

in

is essential that this be done.
There continues to be no need for the
construction ot
commercial-size synthetic fuel

erally will require large amounts of working capital to
on its normal operations.
Moreover, with heavy

capacity for

greater rate than the

a

in

war

enterprises in

activities.

the national policy to attempt to ex¬

pand

a

more

an

rising trend in long-term interest rates that devel¬
oped in 1951 appears likely to carry over well into 1952.
The demand for long-term funds by business should
continue strong.
Capital expenditures of American in¬
dustry should remain high to meet the needs of our ex¬
panding war production program and essential civilian

manuiacturing industry will steadily increase
production during the coming year, although it must be
emphasized that we are working under conditions far

II.

of

available.

If the
industry is given quantities
adequate to carry out its contemplated
drilling program
43,000 to 44,000 wells, then both development and ex¬
ploratory drilling should proceed along orderly lines. It.

interest rate structure

an

is

of the Yeai

of

The

aircraft

War

is

and

defense mobilization program, the

present

steel

artificially low level by the
easy money policies of Governmental agencies, it was
high time that the fundamental demand and supply fac¬
tors in the long-term capital market were
permitted to
reflect in rising interest rates on long-term
money. Not
only did this contribute in checking and moderating the
strong inflationary pressures that have built up since

year which, for various reasons, could not
be accommodated in our ANNUAL REVIEW
and OUTLOOK ISSUE of

Speaks After the Turn

On the investment

7

poster papers.
use in food packaging and papers used

The increased
in

mass

interplant feeding both add to the demand on

Continued

on

page

41

(568)

B

age

Mr. Fuller was origi¬

of 72.

Dealer-Broker Investment

Recommendations and Literatnre

W.

Fuller

M.

A.

cently he has been with Reynolds

1951—Paine, Webber, Jackson & Curtis, 25
Street, New York 4, N. Y.

Administrative Assistant
Swarthinore

Manager's

mercial

Place,

York

New

2-7,

Com¬

25

Chronicle,

Financial

'&

H

Box

references.

Ex¬

accounting.

&

supervisor

tions,
cellent

rela¬

customer

7.

New York 5,

Comparative

Condensed

of

Statements

N.

5,

appraisal—Stroud

proad Street, Philadel¬

semi-annual

are

Figures

and

W. L. Morgan &

From

appraisals of
Bonds.

Fund—Revised

Wellington

folder—

Co., 1420 Walnut Street, Philadelphia 2, Pa.

Bond

Portfolios—Breakdown—Laird,

Bissell

&

Meeds, 120 Broadway, New York 5, N. Y.
Also available is
breakdown of the Sources of Gross Income.

a

Man, 69 years young, with 50
years experience in
Street seeks position.
lent health

and

Wall
Excel¬

appearance.

Leaving responsible banking

position in
cause

near

of enforced retirement

Box B-27, Commercial

age.

Financial

&

future be¬

Chronicle,

25

New York 7, N. Y.

Park Place,

Letter—Background material to

for balance
1952; analysis of 47 Canadian gold mines plus field trip to
Homestake, and the Griffith Letter for one year, all for $100
—B. Barret Griffith and Company, Inc., Colorado Springs,

Griffith

prepare

of

Colorado.

Feasible—Booklet—

Mutual Funds Make Small Living Trusts
Funds

Mutual

Department, Kidder, Peabody & Co., 10 East
45th Street, New York 17, N. Y.

quarterly—compari¬
son
of leading banks and trust companies of New York—
New York Hanseatic Corp., 120 Broadway, New York 5, N. Y;

New York Bank Stocks—79th consecutive

New York City Banks—Tabulation of

Security Traders Association of New York (STANY)
ing League standing as of Jan. 31, 1952 are as follows:

STREET

WALL

99

N.Y.

NEW YORK 5,

(Capt.), Ghegan, R. Montanye, Krassowich, Manson
Goodman (Capt.), Weissman, Farrell, Valentine, Smith_____
Mewing (Capt.), G. Montanye, M. Meyer, LaPato, Klein__
Bean (Capt.), Lax, H. Frankel, Workmeister, Ried—
Donadio (Capt.), Rappa, O'Connor, Whiting, Demaye__—
Serlen (Capt.), Gold, Krumholz, Young, Gersten
—_
Krisam (Capt.), Gavin, Gannon, Jacobs, Murphy
Hunter (Capt.), Craig, Fredericks, Weseman, Lytle_______
Leone (Capt.), Tisch, O'Marra, Nieman, Bradley

66

Burian

(Capt.), Siepser, Gronick, Growney, Kaiser
(Capt.), Swenson, A. Frankel, Wechsler, Murphy__
Greenberg (Capt.), Siegel, Cohen, Strauss, VoccolL

43y2

H. Meyer

39

200 Club

Leone

and

market performance over
Quotation Bureau, Inc., 46
York 4, New York.

Raw

—

Refined

—

Front

issue

current

Liquid

Exports—Imports—Futures

of

Association,

the

McGinnis

"Gleanings"—Francis I. du Pont & Co., 1

Common

Stocks—Tabulation—G. A.

Stock

Exchange

Curb

Exchange

York

New

Cotton

York

New

New

of

Board

Chicago

Cotton

Orleans
And

Exchange

Exchange,

Commodity

other

Inc.

Trade

Exchange

Exchanges

Exchange Bldg.

NEW YORK 4, N.
DETROIT

CHICAGO

Y.

PITTSBURGH

SWITZERLAND

GENEVA,

•

1-1

Kabuto-cho,

FROM WALL ST.

offers foremost

&

Welder

Company—Analysis—Cohu

1 Wall Street, New York 5, N. Y.
Also available is
alysis of the Tobin Packing Co., Inc.

& Co.,
an

an¬

Flying Tiger Line, Inc.—Memorandum—Aetna Securities Corp.,
Ill

Gear

Broadway, New York 6, N. Y.
Grinding Machine—Write-up—Lerner

Machine.

Company—Analysis—Sutro Bros.

Investment

In

&

New York 5, N. Y.

■

Winter

Meeting

Association

Ave.

Feb. 11,

Polaroid

the

Twin City
sociation

Security Traders As¬
winter party at

Normandy Hotel.

Clark St.

Brooklyn, N. Y.




Annual
the

Primary Market

74

N.

Y.

Benjamin

(New York City)

Security Traders Association of

HA

of Philadelphia

bowling

2-2400.

Teletype

Private

wires

NY
to

Spring Meeting of the Board of
Governors
of
the
Investment
Association.

Bankers

1-376;, 377; 378
i

Cleveland-Denver-Detroit-Los Angeles-Philadelphia-Pittsburgh-St. Louis

(New York City)

Bond Club of New York outing
at Sleepy

Hollow Country Club.

Sept. 28-Oct. 1, 1952 (Atlantic
City, N. J.)
Bankers

Oct. 19, 1952

(Miami, Fla.)

Security Traders Association of
New

York

annual

Waldorf Astoria.

dinner

at

the

,

National Security Traders Asso¬
ciation

Convention at the Roney

Hotel.

Nov. 30-Dec. 5,

April 18, 1952 (New York City)

Association

Annual Convention.

Plaza

tournament.

Security Dealers Association

Trinity Place, New York 6, N; Y.

Telephone:

sociation

Ambas¬

Mid-

New York-Investment Traders As¬

Troster, Singer & Co.

the

at

May 14-17, 1952 (White Sulphur

Hotel.

April 17, 1952

Members:

Ring & Bing, Inc., Management

Traders Association

at

Convention

sador Hotel.

June 6, 1952

(Philadelphia, Pa.)

Dinner

Finan¬

of

Analysts Societies Fifth An¬

Springs, W. Va.)

annual

Philadelphia

Angeles, Cal.)

Federation

American

subway in hotel.

st.George

at

dinner

14, 1952 (Minneapolis, Minn.)

Feb.

the

Winter

annual

Copley Plaza Hotel.

Franklin

large

HOTEL

National

nual

1952 (Boston, Mass.)

Boston Securities Traders Asso¬

of

groups! Clark St. sta.
IRT

Edgewater

Cal.)

Finan¬

of

Hotel.

May 9-10, 1952 (Los

cial

Feb. 21, 1952

Telephone MAin 4-5000.

the

at

Hotel.

Winter

7th

of

Board

of

Federation

Analysts Societies Fifth An¬
Convention at the Fairmont

nual

Governors of Investment Bankers

Investment

values-for

May 4-8, 1952 (San Francisco,

Field

cial

■

Company—Analysis—Bond, Richman & Co.,
Street, New York 5, N. Y.

office parties

ing at the Hotel Galvez.

(Chicago, 111.)

Feb. 8-9, 1952

Co.,. 120 Broad¬

Jefferson Electric

meetings

Bankers

Tex.)

Investment
Association Spring Meet¬
of

Group

National

ciation

Railway

Giidden

Texas

&

Co., 10 Post
Office Square, Boston 9, Mass.
Also available are writeups on National Company, Riverside Cement "B," and Seneca

37 Wall

regional associations.

EVENTS

Beach

banquets

small

ated

COMING

Com¬
Inc., 32 Broadway, New York 4, N. Y.
Bausch & Lomb Optical Co.—Memorandum—Troster Singer &
Co., 74 Trinity Place, New York 6, N. Y.
Central Vermont Public Service Co.—Analysis—Ira Haupt &
Co., Ill Broadway, New York 6, N. Y.
pany,

facilities for

Outstanding

include rep¬

30 important NSTA affili¬

May 1-2, 1952 (Galveston,

■

Atok-Big Wedge Mining Co. Inc.—Analysis—J. May &

way,,

largest Hotel

Oetjen

Henry

Corporation—Analysis—Dempsey-Tegler &

Signal—Analysis—Lober Brothers & Co., 30
Broad Street, New York 4, N. Y.

5 MINUTES

or

creation of a

committee- is being

public relations

resentatives of the

Company—Special report—Loewi & Co., 225
East Mason Street, Milwaukee 2, Wis. '

Falls

g===

business,, having a mem¬

•

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

Associa¬

organized group of individ¬

Oetjen states that the

Mr.
national

General

N. Y/s

*

uals in the securities

American Optical

Federal Machine

N. Y. Cotton

Committee of this organ¬

bership of almost 4,000.

Airlines, Inc—Memorandum—Freehling, Meyerhoff
Co., 120 South La Salle Street, Chicago 3, 111.

American Phenolic

Mevibers
York

Chairman of

as

Securities Traders

tion is the largest

Saxton &

American

H. Hentz & Co.

Oetjen of

Henry

Co., New York,

planned to assist him which will

1856

&

New

appointed

has

&

National

The

stocks tabulated by in¬

Ltd.,

38

Company,

ization.

Nihonbashi, Chuo-ku, Tokyo, Japan.
•

48

46Y2

Securities Traders

National

the Public Relations

Co., Inc., 70 Pine Street, New York 5, N. Y.
Tokyo Market—Quotations on major
dustries—Nomura
Securities
Co.,

48

ASSOCIATION

Hastings, Crouse &

the

of

President

DIgby 4-2727

Established

Russell

H.

Street, New York 5, N. Y. Also available is a brief
analysis of Gar Wocrd Industries and a discussion of Ameri¬
can Productive Capacity.
Utility

48

Point Club

Wall

Public

-

54

214

period—
Street, New

Portfolio Management—Selected list of common stocks in

55

Walt Mewing

NATIONAL SECURITY TRADERS

13-year

a

57

-209

-

Burian

parison between the listed industrial stocks used in the Dow-

57

Ricky Goodman

219
200

Meyer

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

yield

5

Mewing

New York 5, N. Y.

National

sugar

Pts.

TEAM
Kumm

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

LAMBORN & CO., Inc.

Bowl¬

"

Corporation, 100 Broad¬

way,

OF NEW YORK

SECURITY TRADERS ASSOCIATION

U. S. Government Port¬

folio distribution—^The First Boston

3fc

Notes

NSTA

Wall Street, New

City of Philadelphia and Philadelphia School District

Government

WALL STREET

Also available

Pa.

9,

of

Y.

Company, Incorporated, 123 South

Facts

EXPERIENCE IN

Government

the

31, 1950—A. E. Ames & Co., Incorporated, 2

phia

Mass.

Corporation, 50 Federal Street, Boston 7,

son

fiscal years ending up to Oct.

Equipment Trust Certificates—Semi-anpual

1

West

Dil¬

N. Y.

Canada and the Provinces for

York

50 YEARS

Pipeline—Memorandum—Barclay

Gas

South La Salle Street, Chicago 3, 111.
Indies Sugar Corporation—Special report—Lee Higgin-

Co., 14 Wall Street,

Cement Industry—Review—Dean Witter &

&

Natural

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

lon &

Office

Economics,

in

assistant,

Company—Analysis—Genesee Valley Securities Co.,

Investment Co., 39

Broad

recommendations—Eastman,

Review—With

Stock

Bank

B.A.

Vet's draft-proof-status,

28,

31,

Gartley & Associates,

Building, Rochester 14, N. Y.

Illinois

Texas

banks as of

Banks—Comparative analysis of 40 representative

—

Avenue, New York 17, N'. Y.

Seneca Oil
Powers

Dec.

& Co.

Park

parties the following literature:

More re¬

Co.

&

Bulletin

—

Inc., 68 William Street, New York 5, N. Y.
Pittston Co.—Bulletin—Wm. M. Rosenbaum & Co., 285 Madi¬
son

send interested

the firm of

later headed

and

ThermO King Railway.

Newport Steel Corporation

pleased

understood that the firms mentioned will be

It is

to

Co.

State
on

&

Drexel

with

associated

nally

the

at

home

Whitemarsh

his

Central

Maine

passed away

50 years,

than

more

at

in

broker

Thursday, February 7, 1952

South La Salle Street, Chicago 4,

208

Fuller, an invest¬
Philadelphia for

William A. M.

...

Company—Bulletin—Remer, Mitchell & Reitzel, Inc.,
111.
Railroad—Information—Raymond & Co., 148
Street, Boston 9, Mass.
Also available is information

Kellogg

W. A. M. Fuller
ment

Financial Chronicle

The Commercial and

]

1952

(Hollywood, Fla.)
Investment Bankers
Annual Convention
wnnH

Rparh

Hotel.

Association

at the Holly-

Volume 175

Number 5088

.

.

The Commercial and Financial Chronicle

.

(569)

World War II had

The Emergency Impact
On Trust Investments

of

United

small

what

New York University

could

to

In

Seldom, if ever, have the probwhich

of

officer

ment

been

the

confront
a

trust

invest-

company

complex and so difficult
as
at present,

so

The

prime

concern

of

trust

com-

is

pany

l

cipal

and

earn

rate

greatest

reliance

was

that

best

the

tained

the

and

defense,

could

be

the

oo-

rather

cline

tivity and

rapidly

a

in

prices

,

economy of the country, and and

^^at fess°os trust investment of-

and

the

0

dein-

will

not

lead

to

assumption that it will not

tion.

another

world

enough

conflagra-

ger of a

This assumption is basic. On

castS)

would

become

.

liying

them.

-

We

today

of

know

that

what

+her soread

r

the percentage

of equities in

has

How

high

•

termine.

i

.

easy

the

increased

It is also extremely dif-

the

well

on

the

may

mfke

the

further

~

^mergeticy ^is not a

preparation for war, and
r
x"1 WdI)

once

+h

some

1952

or.

either

a

1953, armament costs will
level

off

decrease.

or

the

by

defense

program,'' esti¬
peak to reach about
20%, should decrease.

mated at the

(2)
Capital
expenditures
by
corporations under these circum¬
stances will also decline.
there is evidence of

a

Already

reduction in

such expenditures by corporations
not engaged directly or indirectly
in the defense effort.

(3)

Once

these

ments occur,

two
developcompetition will be

creased considerably.

While it is

to be hoped that some time
future

take

a

reduction

place, yet
^

as

in

in the
taxes will

conditions

a downward readjustment in business activity will de-—
_
—

velop.

The only

unknown

An assessment of the emergency

thus raises
whirh

a

number of problems

thp truct

iftv^tm^nt nffWr

which the trust investment officer
Continued

are

offer to sell, nor a solicitation of offers to

thing

is, how severe this readjustment
will be and how long it will last,

on page

buy,

400,000 Shares

and to inquire "what
next?"—whether to continue in¬
to

or

Marathon Corporation

lay greater stress on

again

in

investment

fixed-income

se¬

curities.
The year

Common Stock

1951 demonstrated the

vigor and the strength of the sys¬
tem

(Par Value $6.25

Indus¬

private enterprise.

of

per

share)

.

try produced not only increasing
quantities of defense
materials
and

capital

goods

producers'

to

permit a further expansion of the
productive capacity of the coun¬

Price

try, but met the huge demands of
the civilian sector of the economy
enabled

and

would

happen to corpo¬

what

to

share

This must

of many

minds

per

question in the
a trust officer as

raised

have

$27.25

business to accumu¬

late'record inventories.
a

Copies of the Prospectus

may

be obtained in

including the undersigned,

earnings when the defense
program and corporate capital ex¬

rate

as may

any

State from such of the several underwriters,

lawfully offer the securities in such State.

penditures begin to taper off. Last
year the tax burden on corpora¬
tions was raised to a point previ¬

Lee

ously unheard of in peacetime.
earnings of corporations be¬

Higginson Corporation

Net

to

gan

for

1952

decline,
as

and

outlook

the

regards net profits is

particularly bright. The past
year also witnessed a considerable
increase in yields of high grade
bonds, and toward the end of the
year they reached levels not seen

Blyth & Co., Inc.

Smith, Barney & Co.

Lehman Brothers

Clark, Dodge & Co.

Robert W. Baird & Co.
Incorporated

not

Merrill

Union Securities

Lynch, Pierce, Fenner & Beane

Kidder, Peabody & Co.

F. S. Moseley & Co.

A. C. Allyn and Company

Central Republic Company

Harris, Hall & Company

(Incorporated)

(Incorporated)

Paine, Webber, Jackson & Curtis

Corporation
The Milwaukee Company

during the last fifteen years. Many
trust

a

officer

therefore

must

Incorporated
♦

An

address

by Dr. Nadler before the
of the 33rd Mid-V/inter

Third

Session

Trust

Conference, sponsored
of American Bankers

Division

tion, New

by Trust
Associa¬

York City, Feb. 5, 1952.




February 5, 1952

In

event, the percentage of the
gross
national product absorbed
any

situation,

creasing the percentage of equities

the

,

aJ* of the defense program^ has
^
Ah
1
time either 1C* the U
at
end of

P

New Issue

to take stock of the

to pause,

emer

assumptions:

Developments during 1951 have,
cers

toward

banks.
of

of these shares. The offering is made only by the Prospectus.

however, caused many trust offi¬

tax
de-

appraisal ot tne emer-

portfolios rose considerably.

trust

cost

the banks,

trend

as

appraisal

f^one'

to de~

cits, taxes on corporations as well
as on individuals have been in-

com-

,

an

low

or

^he

corpo-

considerably.
a
break-even

(3) To avoid large Federal defi-

^

any

Korean

to state whether the break- keen, and

tic economic policies of the Uniiev

•

risen

busi-

point can be reduced once
~
business activity begins to decline,

mt™nal
.

doing

point actually is is not

fur-

a

international

of

of

even

.

standard of living

This announcement is neither

of the corpus
of current in¬
declined in favor,

"

cost

^-e ie|u^
point of many

break-even

The present; foreign and domes-

effect
.

,

.

the

pessV

the people in Western Europe

no

.

disappear,

war may

will remove the danger of

visualize

could

and the dan

in

crease

is

the military

ease

...

su? H reaching economic, social,
one

majoif

lncrease ln

worthless,

and political consequences

,

wage rates and.fu.il employ-

An economic improvement and an

assumption, all forepredictions, and prognosti-

cations

^

ment, has led to a considerable in-

from

cal tension will

0ther

any

rising

general

a

the

the part of business

/i\

and over
prmtrihutp tn an
contribute to an

j

r,nmmirll

agression, the international politi-

emergency, one must work

jea(j to

lrmcpr tprm
longer term

increasing standard of living
as measured by the consumption
5u
of goods and services, although in

,

power

Bonds

come.

and

-.

.

«■

Qn

as

jf
„

tomaintain following
program for an

thn
the

a
*

point of view to deter Russian ag-

importance

of the

UniteT state

a

conditions

(4) Once the Western World

the

it

uncertain present year (1952), the standard
of living may have to decline

social

and

-

strong

increase

the

and

iu-

world conflagration.

The Emergency

apprising

the

that

prevailing in many parts of the somewhat.
Middle and Far East, new disturb(2)
The constant increase in
ances may arise. These disturb- capital expenditures by corpora-

.

The purpose of this talk, therefore' *s to. a,scertajn, what the

jn

rPaii7atjon

the immediate future i.e., for the

economic
.

tegrity of the dollar began to be
doubted, there was increasing con¬
cern by
trust investment officers
concerning the protection of the
purchasing

of

v

.

as

fhp

on

wufden°We

mnaaM,

.

decline

equities.

concerns

hat;pd

ever

Qria

the

have increased
on

or _P°sslhly after indefinite period of time

PpnnftmiP

material decline

Finally,

mergers

^t0 °Ur alIieS'highly
<3) Because of

nres
pies-

witness

World War would be a
great catastrophe and would have

cnasn

pu

of the dollar began to

power

would

we

a

conslderaVle Period we will have
t0 mamtaln a lar£e army and renrW
der economic and military assist-

e ween Another
-

spieac^

when

wai

the termination ot the
tne termination of the

H1 19

«

whether
whether

or
or

(5)

half of 1952. The increased productive capacity of the country is

Mili-

the

of

in short-term rates of interest.

decline'somlwhat^n®the fif ^ 38 '"h f"* W°rld
strong defense
decline somewnat in

outbreak

high level at least durin£ the first

Pv

1953, \vill remain high; and for

anmiirine

and

eauities
equities,

emersencv

minor

governments and nigh graae c
the

a

the war when the enfoi

may

to the
War.

by corporations have been exceed- pendence of business

3

-

question

„

increased and is still steadily of doing business and the high
mounting. Capital expenditures rates, as well as the increased

cx^tmg

vf,

present there is no reason to
believe that taxes will be reduced

to or below the level existing prior

_

larSe and win continue at

armament

ti,

fr»

_

capacity of
the country has been substantially

f
fI
.
before the outbreak of the Korean
War. is out of the

rela¬

a

government securities because a most the principal outlet for trust
funds. Although the rate of retu
was not considered satisfactory, it
was

with
with

°bonds the

mobilized

were

holding

additional
additional

equities

ergies and the resources ofhhe nation

advicahlp

litiTroJ

P

_

The productive

other free nations

decline in

A

.

at

-

(l)

economic—of the United States

high

gency would lead to a renewal of
the forces of inflation and make

grade

tively

long

developments during 1951 raised
the question whether this emer¬

and

played

how

rates
and
high
equity
prices could co-exist. Above all,

ent

the meaning
present emergency, one has

and of the

wondered

not

through strength—military as well

money

War II

World

Nadler

role. During

in-

of

Prior to

the

v

to

going

a

come.

Marcus

to

prin¬

preserve

V9

a

have

would have

(1) The containment of Russian
imperialism can be achieved only

.

considerable

(4) The increased cost of doing
above assumptions, it is first nec- business and the
rising level of
essary to analyze to the best of
taxation, coupled with the growone's ability the effects of the ing volume of
business activity
above policy of strengthening the have made business more
depeneconomies of the free world to dent on the commercial banks,
avoid a third World War. These This increased dependence will in
are
already becoming apparent all probability continue for quite
and may be summarized briefly some time and it already has
as follows:
brought about a material increase

with

another

work, therefore, on the following assumptions:

as

a

Before analyzing what lessons
trust officers can learn from the

are

enemy

based to

the above assumptions,

-

to

(2)

lems

in

we

on

Effects of Above Policy

order to appraise

of the

as

is established.

II

compared

formidable

a

are

extent

only from the military but also
from the ideological point of view,

bright as in past, but
business activity and corporate capital outlays may continue
heavy, unless there^ls change in international scene. Looks
for shift in trust investment policy, with emphasis on bonds
instead of equities. Predicts no further inflation in next two
years, if proper balance between defense and civilian needs
is not

fight

War

happen

World War when

year

States

know

the pur-

on

World

of

relatively

explains nature of present "emergency," how it has
affected the nation's economy, and what lessons trust invest¬
ment officers can learn from it. Says outlook for corporation
earnings in current

We

were

sequences

Dr. Nadler

net

the economy

on

States.

chasing power of the dollar, on
taxation; yet the economic con-

By MARCUS NADLER*
Professor of Finance,

the

what the effects

9

W. E. Hutton & Co.

Dean Witter & Co.

24

10

The Commercial and Financial Chronicle

(570)

mills

Southern

Pennsylvania Brevities
PHILADELPHIA
of

directors

Trans¬

Philadelphia

unanimously
postpone until Feb. 29 consider¬

portation
to

Last ' week,

—

voted

Co.

cretion,
such

for

matters

period

a

or

periods not exceeding six months,

pending further investigation.

ation of the fare increases recom¬

As proposed,

the present 15-cent

mended by

single vehicle cash fare would be

tee

retained,

its Executive Commit¬
few days earlier.

a

The proposed new

schedule, the
the

sixth fare boost sought within
tast five days, came as a
and

maneuver

surprise

presented

some¬

shadow

switcheroo in the usual
of labor-management
boxing.
For
the
last

several

years,

thing of

inated.

An

Suburban
creased
The

for

demands

tomary

piration of existing contracts and
has fortified its action by strike
the

time

This

threats.

company

moved first.

vote

to

made

was

postpone

its

•

by the board "to

avoid criticism of acting with un¬
due

haste

and

to

give

an

oppor¬

tunity to the city's representatives
the board to familiarize them-

on

with

-selves

the

complex

many

city representatives on
20-man
board,
including

result

defending

3PTC

fares,

the

which did not become ef¬

Ebert,

E.

Charles

pointed
1951

went

and

91,175,000

will

614% permis¬

claims

for

in

legal

fees

take

effect

in

*

next

*

Disputed

If,

as

ceed

probable,

seems

with

-schedules

filing
with

the

Feb. 29 to pro¬

on

increased

the

the

Pennsylvania

SCRANTON
Bethlehem
formal

Counsel

—

Co.

Steel

objections

Master's

to

that

Bethlehem's purchase of Williams-

carrying

ruled

his

foody. The

opposition

PUC

may,

to

that

at its dis-

Wire

Norma Hoffman

Bearings

Houdry Process
American Pulley

Community Hotel Units
Bearings Co. of America
Riverside Metal

v

1421

CHESTNUT

STREET

LOcust 7-6619




in

1937

be

fraud and that the sale be

a

/

"

-

company, which ac¬
Williamsport's assets for
$3,300,000 15 years ago, denies
any knowledge of or responsibility
for
alleged irregularities which

purportedly expedited the trans¬
action. Net worth of Williamsport

is

calculated

now

be

to

in

the

neighborhood of $50 million.
The

the

suit

wire

brought

behalf

on

of

former

company's

rope

stockholders (many of whom have
surrendered

certificates)
It

was

their

original

first filed in 1946.

specifically charged that $250,-

Memolo,

Bethlehem

to

Scranton

a

*

U.

S.

$

Lumber

States

a con¬

cents

a

year

Split
of

have

Co.

special meeting of stock¬

a

holders for March

24

recommendation

to

additional

to

vote

issue

on

three

shares

common

for

par

capitalization

of

470,656

common

the

ing natural gas wells in Clinton
County, Pa., and has diversified
interests in Mississippi.
*

—

"Roll

backs"

may

keep stockings up, but
applied to wages they haven't ef¬
fectively
efforts
to
supported
keep the industry alive in the
Berks County area.
Howard Hosiery

dismissal

the

Mills, Inc. has

notices

following
closing

of

to

its

within

No

%

and

Swiech

*

Board

to

The Financial

has

operators

gas

gage

plan

111.

Chronicle)

Stanley

—

I.

opened offices at 141

Jackson

Boulevard

to

en¬

in the securities business. Mr.

Swiech

was

formerly for

with J.

years

P.

a

number

O'Rourke

&

,

1,915 new wells in Penn¬
in 1952, an increase of

With Adams-Fastnow

the 1,738 completed last
Thirty-five are listed as

(Special

The

to

Financial

;

Chronicle)

1

LOS ANGELES, Calif.—James
yields from
formations and the A. Hague has been added to the

"wildcats"

seeking

unexplored

remaining 1,880 will be drilled in staff of Adams-Fastnow Company,
215 West Seventh Street, members
already established fields.
of
the Los
Angeles Stock Ex¬
Operations in 1951 resulted in
•
776 new oil wells, 239 natural gas change.
wells, 653 as auxiliary or service
in

older

fields

and

70

With Barbour, Smith

"dusters."

(finecial

LOS

Dean Witter Adds to Staff
(Special

to

The

Financial

E.

The

Financial

Alexander

>

.

has

become

con¬

with

Barbour, Smith &
621
South
Flower

Street,

M.

national

!

Chronicle);

ANGELES, Calif. —Ralph

nected

Chronicle)

to

LOS ANGELES, Calif.—Alfred
Handfuss, William H. Hurt, Oscar

the spur

geles Stock Exchange.

Company,

McClure, Ralph E. Phillips, Jr.,
Victor N. Schimp, and William D.
Stauffer

Co.,

*

U.G.I.

on

objection

Improvement

Plan

with

are

632

South

Dean

members

Witter &

Spring

of

the

Los

An¬

Joins Barth Staff

Street.

(Special

anticipated

is

SAN

;

to

The Financial

Chronicle)

Co.

to

be

to

cease

Hearings

to

LOS

Financial

has

staff

been

Chronicle)

Calif.—G.
added

are

of

Wash¬

ington Feb. 27.

of

creasingly
portrayed
by
many
enterprises, Smith, Kline & French

Laboratories, pharmaceutical
manufacturers, reports satisfactory
increases in sales and gross reve¬
for the year, but a

in income and

Sales

$42,899,400, up 9.9%
$39,037,037 reported in

Earnings

share,

compared

in the

$3.01

or

after taxes

equal

to

were

$2.54

per

with

$4,864,158,
previous year.

the

Brecht,

(Special

and heating

of

President

agents

■

~
,

(Special

to

The

Financial

of

in

and

BAKERSFIELD,

in

to

The

to Staff

Financial

Chronicle)

FRANCISCO, Calif.—Frank

Stone

has

become

associated

with Blyth & Co., Inc., Russ Build-

-

ing.

Calif.—Oliver

:■

•

-

Two With

James Ebert Company,
ter Avenue. He

was

120 Ches¬
formerly with

Blyth & Co.

(Special to The Financial Chronicle)
'

King Merritt & Company, Inc.

LOS

ANGELES, Calif.—John L.

Herrick and Paul R. Modrell have

joined

the staff of Blyth &
Inc., 215 West Sixth Street.

With Daniel Reeves Co.
(Special

to The

BEVERLY
Charles

H.

Financial

HILLS,

Richards

associated

with

Co.,

South

398

members

of

Calif.

has

Daniel

New

—

Two With Hill Richards

become

Reeves

Beverly

the

ston, Hoffman
Morgan & Co.

&

history.

(Special to The Financial Chronicle)

&

LOS

Drive,

York

Goodwin

ANGELES, Cal.-^James L.

Beebe and James C. Newman

and

affiliated

Co.,

621

with

Hill

South

Richards

Spring

decline

a

to

$6.90

Semi-annual

per

Appraisals

Equipment Trust Certificates

with $8.49 per share in 1950.
'

,r

City of Philadelphia

Last Call for American Bantam
PITTSBURGH—Nelvin A. Zurn,

and

President, Zurn Mfg. Co., has been
Federal Judge Gourley
trustee for bankrupt American

to

file

in

plan

a

from

30

to

alternative,

for

Philadelphia School District Bonds
as

reorganization

90

days.

Judge

Gourley

serted, he will order the

Now available

as¬

company

-

in

31, 1951

for distribution

Write for your copy

liquidated and sold to the highest
bidder.
Several firms, including
Thompson

Products,

have

reported sniffing the;
©

Prudential

been

carcass.

STROUD & COMPANY

©

❖

Buys

Building

Incorporated

'

Rosedale

scales

of December

the

In

PHILADELPHIA

PHILADELPHIA—The 21-story
office building at 1528

Walnut St.

the

Prudential

has

been

Insurance

sold

to

Co. and

released

on

a

NEW

YORK

•

ALLENTOWN

&

members of the Los Angeles Stock

and

re¬

share earnings, compared

are

Street,

Exchange.

How¬

Co.,

Chronicle)

supplies, reports 195i

company's

the

of

Francisco

plumbing

the toll ?f higher taxes

ever,

San

Sacks has become associated with

sales of $42,209,906 as being larg¬
est

B.

Chronicleq

Angeles Stock Exchange. Mr.
Richards was formerly with Wal-

Story"

Corp., manufacturers

distributing

members

and

Blyth Adds

L

Los

«

Corp.—"Same

A.

Hajoca

associated

Co., 404 Mont¬

Exchanges.

rise

were

the

over

decrease
28%

a

profits taxes.

excess

Street,

btock

James Ebert Adds

Following the 1951 pattern in¬

attributable to

&

York

Bateman, Eichler & Co.,
Spring Street, members
Los
Angeles Stock .Ex¬

change.

Smith, Kline & French Earnings

in net

become

New

SAN

nues

has

Barth

gomery

M.
the

to

J.

453 South

in

held

The

ANGELES,

Gifford

company.

the

be

w*th

to

SEC

holding

a

before

O'Donnell

(Special

with

merge

FRANCISCO, Calif.—Mark

Bateman, Eichler Adds

in

of its operating utilities and

seven

a

ing 300. Inability to compete with
wage

(Special

CHICAGO,

over

year.

respect to the plan of United Gas

250

Knitting Mills, formerly employ¬

un-unionized1

oil

wells

Bantam Car Co. with instructions

to

employees,

«

Hearings

as

READING

to

rose

compar¬

a

named by

Hosiery "Runs" Continue

month

177

to

a

#

*

earnings

share from

$6.04.

sylvania

$3" million

on

On

moment.

$1.

The company owns four produc¬

sent

77

Allentown department
in his new book "Every
Counts," notes that about

common

consist

Forms 0a?n Inv. Firm

preceding fiscal

share

per

drill

to

23% of all department store buy¬
of

formerly associated

was

to

West

re¬

ing is unplanned and

135
Mr.

$52,935,861

Pennsylvania Punch

Max Hess, Jr., President of Hess

Dollar

Co.,

Street.

of

jumped

the

the

*

Dividends may be paid only

sulted

serve

against

special permission, which,
date, has not been requested.

approved, the

shares,

able

$1.70

by

each present share outstanding. If
new

Co.

Net sales

1951,.

from

for

Per

year.

in 1950,
no present payments are expected
on the preferred issues which are
currently $2.75 per share in ar¬

W.

Directors

Lumber

27,

$80,546,418

RFC loan granted Autocar

Hajoca

to

—

Oct.

$11.16

Because of

ago.

©

i:

SCRANTON
United

John

attorney

since disbarred, constituted
spiracy to obstruct justice.

—

by Autocar Co.

share

common

per

$4,095,459,

will

ended

*

at

Salle

La

G.

associated

Lukens Steel Co. for the 52 weeks

reported

Net is estimated

1950.

paid

by

Steel

COATESVILLE

nal,"

in

John

become

Eastman, Dillon &

Co.

1950.

a

Lukens

at

of

to

Chronicle)

—

Yantis & Co., Incorpo¬
rated in the municipal department.

According to advance schedules

000 "for administrative expenses"

called

plant,

has

South

reported to the "Oil & Gas Jour¬

expected

scheduled

steel

quired

never

MBERTH. BLIZZARD & CO.

Co.

set aside.

The

>We solicit inquiries in

Rope

with

Rey¬
Co.

111.

for

Special

a

recommendation

members
Yarnall &

Co. and

million, compared with $28,110,742

are

filed

has

Public Utility Commission, Mayor
Clark has asserted his intention of

port

Pa.,

*

*

directors vote

Shledon

Sheldon

.scale, Mr. Hess estimates impulse
purchases aggregate $2% billion
annually.

*

Wire Rope Sale

Exchange

The Financial

to

CHICAGO,

full floors

one or more

sales for 1951
reach about $30

store,

$2

(Special

tenants

with F. S.

the last quarter,

Bros.,

fraction of this amount.

June.

Chester,

*

aggre¬

of

approximately

Other

sons.

progress

increase

He

Stock

Obeying That Impulse!
still

are

Easlmsn, OiElon Co.

oc¬

building include New York

nolds &

facilities and employing 2,100 per¬

'.Vy

gating

of the

the accepted capital valu¬

on

in

1952.

company's

the

up

company

in

further

a

below the

far

\Vi%

Co.

Trust

floors.

occupying

present housing regional and dis¬
trict sales offices and
assembly

rears.

that

out

about

$2,350,000

losses

that

out

bill

wage

the

revenues

avoid

only

million
filed against the company in rela¬
tion to its 12-year period of bank¬
ruptcy. It is believed that claims
finally allowed will total only a

President, said that without

increased
eannot

10.

pointed

was

Hearings
on

Sept.

Palmer

return

and

for

need

of

until

sible

Jan. 31.

the

fective

the

Ford's

of

third

would
operation

the continued

threaten

&

John Sheldon Joins

Co.

Tradesmens

followed,

strictions imposed by a

creases

ation.

on

a

of the

final
fare in¬

in

quarter

Mayor Joseph S. Clark, Jr., were

(higher

has

Co.,

Most

came

as

if

program,

Bank

and

as¬

chassis shipments

small compar¬

a

1950.

improvement

elected to

membership

against

as

deficit in

regional

The

cupies the basement, street, second

con¬

been

$500,000 in its first year of opera¬

tion,

its

York.

portant parts resulted in curtailed

indicated that the reorganized sys¬

able

closing

sidering

seriously

was

company

Construction

&

New

National

Close

final

not

Railways

Pittsburgh

May

Although inability to obtain im¬

released, C. D. Palmer, President
of

of

sembly plants due to uncertainties
in materials allocations. Such a

Black

in

have

1951

for

Plant

Realty

man

•

Autocar Company

PITTSBURGH—Although

figures

the

*

Pittsburgh Rwys.

Mr.

The five

In

cents.

ten

long-term basis back to the Tish-

the

as

Henry Ford 2d, in an, interview
in San Francisco last week, said

annual revenues.
*

*

problems involved."
the

to

tem will show net income of about

decision

The

eight

add $5,172,000 to

in¬

wage

in anticipation of the ex¬

fares would be in¬

rates are estimated to

new

Transport

the

Workers Union has made its cus¬

creases

from

cents.

three

cost

zone

a

pattern

another

to

exchange

would

vehicle

be elim¬

would

rate

cents

three-tokens-

the

but

for-40

©

*

Ford

Local

in

given

was

instances.

both
*

its decision

postpone

in

reason

Thursday, February 7, 1952

.

.

.

•

9

PITTSBURGH

•

LANCASTER

Volume 175

Number 5088

.

.

The Commercial and Financial Chronicle

.

(571)
income

Business in

an

Election Year

overtime

on

affect

ture and

Nations,"

Adam

Smith

advanced

the thesis that

hand"

of

years

"invisible

an

slowing

(4) Expansion

inexor-

the

of

(5)

These

the

could

always

ably trans¬

counted

mutes t h

e

forts

each

more

that has been changed. Today, the

of

exact

in¬

own

dividual
nomic

of

benefit ahd

be—count

book

ment

in
Raymond Rodgers

transforming
the

political

known

of

former

students

economics

it

dismal

the

as

economics.

science

make

into what later

economy

became

(As

will

you

the

recall,

helped

professors

to

Without in any

dismal!)

implying that economics ever

way

became

nonetheless

recognized that the wheel

has turned

"full circle"

and

the phrase, the art of

more

cal

it

science,

a

must be

must

economy

present

once

politi¬

used

be

realistic

a

view

to

of

our

"managed"

a

credit,

with

debt of

over a

dollars,

and

quarter of

with

and

money

public

"managed"

a

a

trillion

"directed"

a

especially the price and

economy,

interference with the classic

wage

method of allocation of resources,
the

to

of

art

political

of

comes

man,

unborn

importance
and

woman

in this country, to

be¬

economy

paramount

every

say

child

nothing of

generations, and the other

free peoples of the world!
Far

cies

from

the

advocated

economists,
even

and

by

statutory

many

more

"let

poli¬

classical

the

by
and

enactments,

administrative rulings

practices, has

direction

alone"

government,

our

far in the

gone

of

assuming responsi¬
successful and full
(expanding
econorhy)
operation
of the entire economic system of
the country. (This, of course, does
bility

not

for

mean

the

that bureaucrats will

ac¬

cept the responsibility for the ad¬

developments which will ma¬

verse

terialize

from

does mean,
ernment

time

to

time!)

It

however, that the gov¬

directly,

indirectly

and

through its agencies, intervenes in
the economic process. This inter¬
vention will reach
1952!

new

conjuncture of military

ac¬

against Communism, rearmament
the

meet

world

Russian

conquest,

contested

threat

and

planned for 1952 is $2 bil¬

basis,

we

combat

monthly
averaged $2.6 billion for

equipment each month in

is the
no

of

average

month this

$4.6

billion

each

year! Please note: this

arms

big

war

spending timetable if
breaks out, and if

Korea continues

changes to

a

on

cold war, or

truce, basis. But, if

a

the need becomes
more
urgent,
defense
spending
will be stepped-up even higher
any

reason,

than the

by

the

21,

As

for

don't

of

bitterly

a

Presidential

election,

necessary!

not

forget

for

which

rate

said

would

know

—

moment

that

will not only rule the air¬

it

waves,

balance

will

affect

"between

share

that

activity

will

is

ahead,
ball to

crystal

a

in

be

at

fields

will

and

capital

operate

ever,

are

mand and

supply relation.

inventories in
tressed

this

field

production

of

consumer

While

at

was

some

40%

lower

rate of

disposable

the

and

shown

business

taxes—will

in

recent

have

an

the business

your eye on

on

ag¬

Assistant

McNeil, on
be reached

pattern,

the rate of

and

1953,
definitely.

ing.

And, remember, it will take

real

values

to

that

reverse

Although
future

we

with

a

look

to

the

degree of

op¬

can

fair

timism,
nonetheless,
caution is
definitely indicated. Businessmen,
even

though

other

direction, should:

(1)

taxes

press

Some

of

have

you

heard

or as an.

tablished

difficult to break..

are

seeking
(2)

Give

their

cash

lars

are

than

ever

.(3)

during the

special

position,

needed

Go

attention
as

to

more

do

as

easy

(4)

volume will

before

be

and

Not

be

lulled

into

continue

margins

defense

costs,

are

to

as

as

on

production

higher

de¬

not

taxes

and

strict renegotiation policies on the

government contracts will prob¬
ably reduce net profits, after tax¬
es, a further 12 to 15% in 1952.

dur¬

than

Moreover, regardless of the

un¬

organization for the trial
by fire in the competition which
lies ahead.
And

now,

my

parting consola¬

tion is: If you businessmen
worry

enough

precedented defense spending, and
the
unprecedented
corporate

won't

spending for expansion, the

about

these

things,

you

about

Old

Age!

con¬

have

to

worry

400,000 Shares

MONSANTO CHEMICAL COMPANY
*

economy!

_

Common Stock

Non-defense

continue
the

spending also will
high levels. Although

at

: ' "

President in his Budget mes¬

non-defense spending in the
that

next

(beginning June 30),
is, in fiscal '53, it is doubtful
year

that

the

tion

coming

Congress,
up,

with

will be in

Price

a

deal about economy,

but when it

comes

per

Share

sav¬

course,

talk

great

$98

elec¬

an

ing mood. Of
a

($5 Par Value)

billion less for

requested $1

sage

fiscal'

Congress will

to

Copies of the Prospectus

voting, don't

may

in those States in which the

expect too much!
ties

in

he obtained from the undersigned only

undersigned

may

legally offer these securi¬

compliance with the securities laws of the respective States.

Taxation

heavy

taxation.

fact,

if

Smith, Barney & Co.

this

an
election year, taxes
undoubtedly be increased.

would

However,
not

In

not

were

your

bother

you

conscience

about

the

The First Boston

II

year

peak

but

in

was

the

$44.8

taxes

Glore, Forgan & Co.

the

uneasy

defense

and

year

which

during
will

be

is far

the

Merrill

fiscal "

more

$84

than

Ripley & Co.

Lynch, Pierce, Fenner & Beane

Union Securities

Corporation V

Clark, Dodge & Co.

Lehman Brothers

Lazard Freres & Co.

Stone & Webster Securities Corporation

White, Weld & Co.

Drexel & Co.

Hemphill, Noyes, Graham, Parsons & Co.

fiscal

current

about

Harriman

Goldman, Sachs & Co.

Kidder, Peabody & Co.

$63 billion will be extracted,
the President estimates that

taxes

Eastman, Dillon & Co.

Blyth & Co., Inc.

Incorporated

billion in

current

Corporation

need

you are

billion,

the

Hornblower

Weeks

war¬

W. E. Hutton & Co.

Lee

Higginson Corporation

civilian
wage
*An

production; it will affect time peak in 1945, and almost 5%
and price decisions; it will" times the pre-war total of 1940!

address by Dr. Rodgers before the

Banking
Dean

s

Alumni

and

Day
of

Seminar

Finance

Home-Coming
New

York

for

of

the

Commerce

University,

York City, Jan. 26, 1952.




New

♦

it
lit

F. S.

Moseley & Co.

This tremendous burden of taxation will have much greater COncpniipnppc;

on

hlisinPSS

thfin

m3nv

sequences on Dusmess man many
people yet realize.

With Federal
ra

February 6, 1952

false

security — even though
working overtime on defense or¬

no circumstances to be construed as an
offering of these securities for sale,
offer to buy, or as a solicitation of an offer to buy, any of such securities.
The offer is made only by means of the Prospectus.

of life for the American

a

of

sense

ing," especially

way

on

expan¬

ods and

Profit

on

early

new

business

possible

as

borrowing, especially for

scoff at government "pump-prim¬
as practiced in the
thirties; but I submit, de¬
fense spending at the rate of $50
to
$60 billion each year is not
"pump-priming"—it is, instead, a

to

dol¬

before.

NEW ISSUE

me

the

everything possible tc
keep waste and extravagance to a
minimum, as precedents once es¬

This is under

in¬

in

Do

higher

hold appliances is to be cut back

some

tide!

Conclusions

De¬

continued

so

sav¬

civilian goods, and higher wages,

dis¬

particularly, the permitted
production on major house¬

Jan.

con¬

high
important

ders. Although the
heavy defense
spending period, has been length¬
ened, it will not continue forever.
So, be ready with products, meth¬

cline.

in the comparable months in 1950.

More

offered

earnings—both

after

able goods in the latter months of
1951

unquestionably get their
increased

people

sion.

But, in fact, total

all

keep

Business Earnings

selling have tended to hide

the basic trends.

indus¬

goods

last three quarters of 1951.

Heavy long

and

soft

the months ahead than

de¬

new

a

will

be

not

impor¬

more

mourning the passing of the deal¬
market, it may do better in

goods, how¬

approaching

the

values

high,
durable

should

ers'

capacity.
Consumer

it
on

goods

The extent to which this

goods

practically

is

of the

corporations guarantee that the
goods

•

soft

business. If the soft goods industry
rises to this opportunity and quits

a

and the large capital outlays

hard

rates,

If
the

at

power

done, however, will depend

the

..

of

effect

gressiveness

high level.

1952
is
an
election
year.
This and
burning realization will color their, $71 billion will be taken in fiscal
judgment
and * affect " their 1953!
every action. Politics — modern
-Total Federal, state and local

style

immediately

need

,

in

"patriots" will- 1945,

one

tries will

pattern

save

$55 billion rate expected
of June, or the $60

Secretary

time

War

The Washington

business

months

you

paying now, especially to
gives the sitting President and the the Federal
government. The-big¬
National
Administration
ample"
gest prewar Federal revenue was
excuse
for
any
action thought
$7.2 billion in 1941, and the World
t

the

to

end

billion
fense

;

the

the

What

and

income.
■"

purchasing

into

over

this

time,

on a

calendar 1951 but will try to spend
an

fields,

The Business Pattern

high levels.

very

durable

consumer

tant, employment will be at high,
levels with high wages and over¬

'

Increasing expenditures ob¬
viously mean a continuation of

tion in Korea, world-wide defense
to

con¬

spill

of

cause

over-rated.

more

y

=

to

more

poses

an

the annual rate of in¬

as

loans
course,

defense program, and
despite
increased social security,
spending
declined and saving increased to

effect

more

personal

the

def¬

once

rising

heights in

—

The

tinues,

and

'*.....

.

financing

arma¬

basis, at the rate of nearly
each
month.
This

lion each month. Put

goods will

will become

on

billion

crease

that

is

consumer

availability

The increasing military expen¬
ditures, the heavy government ex¬
penditures for non-defense pur¬

mounting rate of expenditure

for

economic process.
With

may

spending

1951,
increased,

spending

annual

$2

of

art

case

In the calendar year

the

was

step

the

as

increased

on

this year.

world-famous

first

and

mournfully,

—or

f o r

This

all.

difficult,

taught the lesson
spend; and elect

elect"; and certainly the Fair
Deal, or Truman Deal, practitioners
have
evidenced no bias against
spending! So, we may confidently

gain

progress

"spend

be

sources

necessary—and,' of

New :risky!

is true. The

opposite

and

eco¬

social

into

But, since 1933, all of

on.

Deal practitioners

seeking

person

his

ef¬

will

sequence

The

despite

of

mar¬

are

the

enormous holdings
liquid assets, despite assurance
of future job
security because of

on

While it is true that decreasing

living. But, probably
important adverse con¬

from, internal

be

onward,

King, and properly so!

lower

a

products

hold

income, despite

stay.

en¬

increase

to

up

these

sellers'

will

business prospects in the
months ahead. In 1951, from March

entirely dif¬

an

The

always,

as

to

tinue

morality will decline.
add

low

sumer,

key

initely things of the past. Com¬
petition in soft goods is here to

of

most

a

will

continuing

are

matter.

in

kets

be

of

evasion

all

standard

years were

hesitation;

Tax

and business

due to the uncertainty

outcome

will

existing
terprises will be slowed up.

decisions; it will
military and truce

business

up

businesses

ferent

started.

though working

Historically, election

Fewer

this

of

Soft goods

Lower costs will not be ag¬
gressively sought.

rate

affect

even

in

production will have
inventories is obvious.

Extravagances will multiply

(3)

impact

level

(2)

*

Causes of the Wealth of

JN.F.A.

The

decisions!

tax

tne

consequences seem

(1)

defense orders.

In 1776, in a book with the
long
title of "An Inquiry into the Na¬

oy

profits, the follow¬

so-

in business.

Rodgers advises businessmen, as cautionary steps, to:
(1) keep waste at minimum; (2) keep in good cash position;
(3) go easy on borrowing, especially for expansion; and (4)
even

iuy0

second quarter of this
year,
which will bring production down
to 45% of the pre-Korea levels.

on

inevitable:

Dr.

of security,

iminer

called "excess"

After analyzing business conditions relating to earnings, taxes,
new
business patterns, and the like for the months ahead,

sense

a

the

ing undesirable

By RAYMOND RODGERS*

indulge in false

rates alone reaching
ceiling of 70% on all

profits, but reaching 82%

Professor of Banking:, New York University

do not

tax

overall

an

11

Paine, Webber, Jackson 8c Curtis-

Dean Witter 8c Co.

The Commercial and Financial Chronicle

12

share of A (without voting privi¬
lege) and one new share of B

.

Schizophrenia Hits the Stocks
"Expanding Your Income*'

out

cushy

is

have

We

^

the new
acquires when

the

primary

(6) They are good

of

business

vertising

the enterprise
is.
It can be
a

when
Can

company

mg swiitiy
niaes

ik

a

-f-"

a

t>

Paciiic

.

from

derricK,

■

_

diesei

.

Thursday, February 7, 1952

.

but

not

every

strike

oil,

that can

next best thing

the

happen to stocks, market wise, is
the rumor or reality ot a stock

Ti,«f

the

on

Exchange

just

by help

standard of California, Atchison,

that sniffs 01 oil

gains market altitude.
Well, lets face it
company is going to

you

much right now,
What you want to know
very

almost

Something new has been added above 60 on our list of

records

the

at

°

a

vMr

for

,w?rirt

SeWhile'on*"the*1 ist," Allied

device is

This

TABLE I
Equivalent

Allied Chemical

General

trend

fashion.

practice
number

does

com¬

of

useful

G. D.

Old Shares

72

288

me

there's

pride

in

International

Machines in

40

120

67%
631/2

2 for 1

earning,
best
prises.
Stock

2fori
-

;

•

r

-

60

\

83 %

2 for 1

IO51/2

52%

1120

stock

Split

1951

Prediction

1

$2.50

3 for 1

4.00

3 for 1

dividends.

Kennecott

They increase the number
of stockholders by bringing shares
into a more popular (lower) price

Pure

range.

West

3 for 1

3.50

2 for 1

75

3.00

2 for 1

88

6.00

2 for 1

2.50

2 for 1

150

Oil

2 for 1

5.00

65

.

4.00

62

Copper

84

106

.

Tire
Powder

1.60

3 for 1

2.50

2 for 1

Indiana—

78

Virginia Pulp & Paper—

"

80

Standard

of

Zenith Radio

offer to sell

nor a

Brothers

with

offices

has
at

Street, New York City, to
the

securities

ners

J.

G.

Vickers.

S.

Vickers

Wall

engage

business.

Sydney

are

and

been

37

Part¬

Vickers,
Sydney

4.00

72

solicitation of an offer to buy

any

/

Graham, Parsons & Co. J. S. Vick¬
ers was

with

Harris, Upham & Co.

is

SEC Moves Office

%

In New York
The

Securities

Commission
its

New

moved

and

has

York

Exchange
that

announced

Regional

Office

Jan.

31, 1952, from 120
Broadway; to 42 Broadway, New
York 4, New York. Mail may be
on

addressed

to Peter

T.

gional

Administrator.
telephone - number

Byrne, Re¬
The new
will
be

Whitehall 3-3460.

With Waddell & Reed
(Special

to The Financial

Reynolds & Co.

in

As

your

among

the

managed,
dividends

respects,

own

are,

a

in

mark of invest¬

that

if

a

has

Salle
with

111.—John

become

Reynolds

enter¬

excellence, a badge of
porate distinction.
is

CHICAGO,
tice

best

&

Street.

Co.,
He

W.

Euswith

208
was

Dempsey-Tegeler

South

La
formerly
& Co.

cor¬

Joins
free

(Special

Kentucky Co.

to The Financial Chronicle)

2 for 1

3.00

were
given to ipvest in
LOUISVILLE, Ky.—Lucien L.
equivalent companies, you Kinsolving has become connected
would surely decide on the one with
The
Kentucky
Company,
most likely to split its stock; and Louisville Trust
Building.
;

two

such selection would, on past rec¬

ord, be

paying market strategy.
Landry, Alexander Adds
not see, for a long time,
(Special to The Financial Chronicle)
a
fantastic
100
to
1
split like
TXL in 1926, but only last year,
NEW ORLEANS, La.—William
we saw Pfizer and Merck
go 3 for B. Barnett has become affiliated
1 and Consolidated Mining 5 for 1. with
Landry, Alexander & Co.*
There'll
be
things like that in Marine Building, members of the
a

We may

1952;

all

we

have

to

do

is find

New

Orleans

Stock Exchange,

2 for 1

Common Stock
(Par Value $5 Per Share)

evidencing Rights to subscribe for these shares have been issued by the Company
at the close of business on February 4, 1952 for

holders of its Common Stock of record
at

$8.00

per

share

at

the

rate

of one share for each four shares held. The War¬

February 18, 1952. During the subscription period shares of Common
be offered and sold by the several underwriters as set forth in the Prospectus.

expire

on

INVESTMENT

BANKERS
?' .r;.

Established 1925

Members New York Stock Exchange and Other National

Exchanges

The Prospectus may he
writers

as

may

obtained in any State from such of the Under¬
legally distribute it in such State. The Underwriters include

UNDERWRITERS and DISTRIBUTORS
of INVESTMENT SECURITIES
BROKERS of BONDS,

HORNBLOWER & WEEKS




;

affiliated

RAYTHEON MANUFACTURING COMPANY

Stock may

v

(Special to The Financial Chronicle)

mentioned

434,189 Shares

rants

j

Chronicle)

ST.

FEBRUARY 6.1952

subscription

.

City

of these shares.

NEW ISSUE

to

G.

formerly with Aigeltinger & Co. and Hemphill Noyes,

The offering is made only by the Prospectus.

Warrants

Jr.

was

choice

Dividends

allowing the lion's share of earn¬
ings to be retained for expansion.
(2) They
are
preferred
by
wealthy investors who seek capi¬
tal
gains rather than fat cash

Hercules

Vickers Brothers Is :

in

coincidence that

no

occur

Certain, it

160

Cities

ups

it

box.

ment

118

Cyanami

deposit

many

"167

Amerada

an

find

3 for 1

American

neither

to

split

purposes:

(4) Wider ownership often sets

ashamed

earlier, it is

Cash

(3)

r

114

Price

General

"//•.■

LOUIS,
Mo.—Raleigh V.
are, right now, in a position where Kirk has joined the staff of Wad¬
consideration of split-ups is highly dell & Reed, Inc., 408 Olive Street.
logical.
Also, look over this list
and you'll find you wouldn't be
With

102%

TABLE II

Atlantic Refining
Service

'

your quarry:

for you.

ones

Vickers

there's no vagueness — a specific
prediction is made, 2 for 1, 3 for
1, and so forth. Of course, there
is not the slightest reason for you

57

76%

that

haunting

a

Business

the fact the

2 for 1

'

Searle

reduce

form

Schizophrenia hits the stocks,
Two for one, and that's a lot,,.
Twice as many shares in view f
Splitting stocks may be the

formed

Also, it seems
lot of management

a

in

you,

of

me

verse

a

Formed in New York

800 shares in 1951.
to

to

remind

sort of way,

Gypsum is an¬
other
unlikely one. They have
something in their by-laws, I be¬
lieve, that would, unless deleted
by stockholder vote, prevent' a
stock
split.
Another one much

320/:

v

matter

U. S.

51%

160

About

announcement is

shock!

2 fori

to

(1) They conserve company cash

This

the

2 for 1

Pfizer

rose," why not let

will

Telegraph seems no logical candi¬
date for splitting. Too much char¬

124

_

Standard of N. J

derive

not

the
the

cer¬

issues

should, it seems to me, be elimi¬
nated. < American Telephone and

74%

_

financial
Splits have in actual
been found to serve a
slavery

for stocks that

for you my

dividandies,

rumor-recurrent

9ft

—

Motors

Phillips Petroleum.-'

panies split their stocks. This pro¬
mere

tain

safe

'

Charles

nounced

Price for

2/1/52

4 for 1

2541/2

—

Gulf Oil

pulsion.

from

down

set

681/2

Amerada

and they often provide
the market equivalent of jet pro¬

than 150

Market Price

Split

Stock

commons,

more

I

certificates

; ','-5,
while you dig and search
will "blossom like

multiply.
And

-

Earnings have to to place reliance in these guesses;
very good — and the except that all of these companies

Market Price

split, observe the juicy gains in
Amerada, Searle and Standard of
New Jersey. Splits never seem to
hinder the market progress
of

year,

Before

1952 list of stock

-'.J"'.

492,000 shares.

to

into one new be good

Chemi-

appeared
benefit but slightly from the

cal and General Motors

Last

ture, for additional capital.

our

to

SUre

"possibles.
of plehf leading^omnaniM'Shares
to certain%recent 100% stock divi- It also helps if the present num£ f
2Id
lone dends—a scheme to let big stock- ber of outstanding shares is quite
1Jh for Ipw shares tn Lome holders sell some stock without small—for instance, Zenith with
chares
enough
new
to become
lnnk

them, and wait for

a $200 blue chip.
They might feel
fire for market gains, which
Asjjian(| oil and Refining, Fair- issues are the likely splitters right they had lost caste a bit, if their
common traded in the fifties, after
ban^s Morse, McDonnell Aviation, now?
It used to be that nobody
a split.
name just a few, all split their
talked stock dividends unless a
So after screening out the fore¬
commons 2 for 1 in
1952; and in stock sold above 100.
Now we
mos^ cases the combined cash div- have
to
lower our sights,
and going, I arrive at the accompany¬
idends this year on the shares will argue backwards. In practice, for ing list of candidates most likely
to split in 1952 (Table II):
exceed the dividend rate on the popular acceptance,
the favorite
One
advantage you have in
^ stock# American Seating Co. range for new shares to sell (at
an(j American Marietta have just the start) is in between 30 and 45. reading
this. article, over other
at
announced 2 for 1 splits,
crystal
That makes any stock now selling attempts
gazing,
is

s>t.

petroleum to
Long Bell Lumber sugparlay from Pin® to pe-

ordinary stock

matter of fact you could make stock, and the pleasing market
rather impressive list of Who's gains that ensued. That doesn't

down the share splitters, does it?
American Smelting and Refining, iS, if splits up have proved

It seems nowadays that any

trol.

to

up

ran

split,

settjng

to

Regis Paper adding

pulp; or
gesting a

s(ock

who

t cning

sw 1

Cobleigh

Ira U.

10

y ?.r Mnrih"

ern

They have a ground rule there
aSalnst common shares n the
m (a J2 same company with different per
three trad- share voting power.
.

Jan; 8, i952> Ameri-

on

expanding

an

point increase) within
talked about, Texas Pacific Land
ing dayg
Look at Atlantic ReSo far, we've talked some inTrust, doesn't figure in my book.
fjnjng jn
past week, bounding teresting history—all about comThey don't need money to ex¬
up Qn the prospect 0f division. As
panies that have divided their
pand; fact is they bought in 12,-

Leather, movirom

financial ad- you want your shares listed on
the New York Stock Exchange,

Can announced a 4 for 1

the

already

is usually

having need, in the visible fu¬

executed this alphabetical fission; acter has been built up with that
and M. A. Hanna Co. has voted $9 dividend for 32 consecutive
to do so. From a control stand- years; and if certain provincial,
point, it's sort of eating your cake less informed, and remote Tel and ~
and having it too. \ This gim- Tel shareholders heard their stock
mick does, however, have one im- was selling at 80 (after say, a 2 for
portant drawback—it's no good if 1 split) they would never get over

frequently with ful stock sale to the public.
look a company
(5) They are the visible eviit strikes oil or dence, and the result, of expanded
natural
gas. earnings
and increased surplus,
It doesn't mat- They are usually tributes to effecter much what tive and progressive management,

profit,

wooly brainchild of a dreamy
It's real.
Talon, Inc.

and Parker Pen Co. have

the stage for subsequent success-

with

watched

all

and

fascination,

no

economist.

Corporate equities

company
one

of A, taking a worthy

wad

a

capital gain (taxable at 26%); and
still has just as big a management
voice as he ever had.
This idea

:

Preview of 1952 fission fashions in

Mr. Fatcat then sells

which votes.

By IRA U. COBLEIGH
Author of

to

.

(572)

PAINE, WEBBER, JACKSON & CURTIS

Private Wires

•

STOCKS, COMMODITIES

Home Office: Atlanta

•

Phone LD-159

Volume 175

Number 5088

.

.

'«!«#t
■
Wnflk ( AHAAIi

FinancialChronicle

The Commercial and

.

(573)

>

13

acceptance of
ii« '1 1
r
greasing acceptances pf the thesis ably well. Oh the other extreme, political expediency indicates that
St A f1 If ; MflT IfAt f; ^f vihflation;: by vthpjtnhn: On ;the 'meaf :paCkihg;; J textiles, grocery -no hard line will be held on
;thp pnain: pn the meat; pacSting; ;ti
'•Mr■ww*Vr;• Arlltti®v street in thfTiVast Wflr hnd this rhflinq shipping; <iiiV#ar hakinf
strOei in the' past year and this chains; shmrviiVtr
sugar; bakings wages, farm prices, or other, spots
has
become
a
one-way
street, automobiles,, iron and steel, hard where strong political pressure is
'J <2 Z *
v!1 By N. JLEpNARD JARVIS* ;v
; Accordingly, even he has come and soft beverages, foods, anttira- felt. Although production may de¬
'\l*
Partner, Hayden, Stone & vCo.
/ i t
into the market as indicated
by cite coal, "carpets and rugs, print- cline in many lines, -such -as in
:>• r
Members:New YorkrStock Exchange .v.
the increase in the number of ing
and
publishing,
railroad household items and building con¬
of purchases of odd lota.»It; is difr equipment; automotive equipment, struction, production for defense
Mr. Jarvis, contending stock prices in comparison with other
; ficult to give, - you .any accurate, insurance,tobaccos, papers, dry purposes could reach an annual
forms of property have lagged behind die general rise in money
;
estimate as to ;the. number of goods chains, retail, m^rchand ising top of about
$65 billion, as against
values; points to major changes with respect to investing in
'share's or amounts of dollars that ppd leathers
(except U. S. Leather some $30-$35 billion last year. In¬
recent years; as (1) injection of pension fund and trustee
have gone. into; pension fund put* which turned into a natural
gas coming orders will probably reach
v chases,but it is my opinion that company)- did. very
poorly. In their peak of the year in the
buying of common stocks; (2) increasing popularity of so*
purchases foiv pension fund ac -. viewing the market as a whole first half and deliveries will con¬
called
#

.

IIT

■

9r.Alll%Qli'l',i:'lVl

-

•

*

-

,

I't

■

.

"growth" stocks; and (3) increasing acceptance of }
by man in the street Stresses selectivity i
as keynote of stock market

V.'SPHR^

continuous inflation

During the past

prices today been small in rela-

year, or more,

been somewhere to then,, if is absolutely necessary to
$300'recognize^'the character and the

i

neighborhood of $200 to

million

,in

the year 1951 and that

bit about bifla-

a

from the officials

book.values

Wash-

in

recent years but

it bas also been moderate

nese
These

mgton.

over

lation

the

to

xauon

xo

m. re-

infla-

xremenaous
tremendous

me

iniia-

remarks

may

tionary rise in other segments ox

have

e

pur. economy.

b

v a t.p n
ted

In 1937, income to
S71

innivimials
pminlprl
individuals
equaled
partly by the but as of November,
knowledge o r able personal income

t i

mo

fear

hiHrnfi

volatility of' the various groups

m^the^ear 19523*' Purchases6 for

jfinvestment

,*8? ??£**? substantial increase in

hearingvquite
turn

the

p^sbf

feeh
rate

Pot^ntiaJs

,^an^ group, requires

com*

the open-end".type have

increasing

al

I

rapid

very

a
*

1*1.:,%•

trusts • tas
.

-ma'.'a.

of

...

the

•

1

'

have indicated that

a

number

year

an a

«ione& averages

the y

"sen

^^assMsftotaled f$2.530,000,000

ing increased traffic and possibly

re-

-^^^lectin^^aies^^orr the year ; of higher rates. Aircraft manufacstandpoint^'of ■.the ji&j-30,, 1951, turers and machine tool builders
?ired f^crea ? creaae hi tho population s
of open-endshould show" earnings improvethe
probably■-;* de-

■

<

nave

1937 by the smalt amount of
From tho
.

type'-; of resources, the market advancements.
Textile
and
debartment
ments.
Textileahd department
activity that ^so
could recover.; from last
-beett.extrmely^
stores ', co '

•

...

...

......

.

well

1953 and

into

Consumers'

disposable

income, which, is income left after
taxes, may rise another 6%-7% to
about $217 billion.
There
out

through¬
probably
at the be¬

many .bears
Street circles,

are

Wall

many as

there were

lowing the market through inter¬

■

that

^nce

rise

to

1954;

reasonably
reasonably
ginning of 1951. Those conserva¬
well in 1952. I believe in addition
tive investors who have been fol¬
to those which I have already
iu.i'

mi ght

pi a ce

into

as

of industries should do
of industries should do

during the last few years,
total-assets" of open-end in-

vestment

as

each group are

tinue

pretation of banking figures have
been increasingly bearish since
last
January. Cyclical students
have been increasingly bearish
since February, 1951, and many In¬
stitutional

investors t have

shown

less interest in stocks since: July,

1951,

and

have

many

increased

cash

reserves.

-credit

balances

their considerable

...

.

Customers'

free

.

tas? 2?°?

"

:

N.LoonardJnrvis

^

demand deposits ^of
me

7

Sov?rnment'».pi»gram°n some?e!
.spect^has ^eit to put i^offect^l^g^^ rbillion.
If , stocks^Were
ya^uss.;t restrictions- and , high Priced today in relation to the

publics has become aroused and

t^t ithasibfe^ ttiSdened

-

as

food

the rise, in stock prices has been
".JBsias ^in 1937 - there

^

chains ^uld

^2 ; «2rr»Si

.score

a

wub+(t*hf

eral market weakness could de¬

^ ■■5^

wll»lij,are^gniftcant

■

last

year

,

when it is noted that the 1951 pretax income of $44.8 billion was

$3.4 billion above that of the year
earlier. However, despite the decline

to

net income and

in

the

nation

business

s;

mated'
year

attesting
strength of the

financial

economy,

esti-

payments

last

dividend

of $9.5 billion

lion

more

ments.

than

were

1950

How about other forms of prop- copper,

re-#

impact of taxes
readily discernible

is

$300 mildisburse-

Although present market

In 1937 the Bureau of La-

erty?
bor's

nrirp
price

f!ommnditv
Commodity

stood

Up

86.3.

at

until

indpv
index

January,

1952, the index had risen to 17?!
increase of 105%. Again using
the same relationship, the averages would have to rise to 400.
Building costs have risen from
197 to 406 as of January, 1952, an
industrial

order

in

400

at

would

continue

to

in

advance

index

of

from

85

1951,

an

common

farm

derlying forces in the stock

stocks,

has

lands

risen

to

ket

picture.

With

investment

capital in the neighborhood of
it is- only reasonable to ex¬
pect that funds from pensions,

Industrial

savings banks and
tional

investors

to flow into the

Let

other

should

institucontinue

equity market.

just look at the relationship of stock prices to book
values.
Since
1937, when the
us

,

Dow-Jones
book

value

Industrial

$88.30

was

$100 has

over

been

a
share,
plowed back

into these companies to
book
up

value

as

Dec,

on

to $194.20

value

share.

a

average

bring the
31,
1950
The

book

of Dec.

31, last is possibly
higher although no

substantially
figures are as yet available. The
1937
high Dow-Jones Industrial
average was selling about 120%
above its book value, while today
it is only around 32% above.
If
common

at

the

the

stocks

1937

toda.y

ratio

Dow-Jones

would

to

were to

book

Industrial

have

to

rise

sell

value,
aver-

to

427.
Not only has the advance in stock
ages

complete
the same picture,
Consequently, it does not look as
if

stocks

common

inflated.

are

Major Changes With Respect to
Investing
It

seems

been three

to

me

is

a

political

and

year

dividends

to

shareholders.

figure may be exceeded in

1952.

not an

ojjer ojsecuritiesjor sale or a solicitation oj an ojjer lo-buy securities.
February 4,1952

251,540 Shares

Southwestern Public Service Company
Common Stock
Par Value $1 per

Share

The Company has

the leaders- would show price adas against 20 to 30 of the
not so well known showing a de-

vances

cline,

a very

trative

significant and illus-

development.

Next

touted

stocks are now being
growth stocks by vari¬

many
as

institutions but

are

at all.

,h|is been

in the advance

Common

1 share for each 13 shares
held, with the privilege of subscribing for additional shares subject to allotment if total
subscriptions exceed 251,540 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

an

Of

really not

per

share

map be obtained Jrom such cf the undersigned (who are among
the underwriters named in the prospectus) as mag legally ojjer

Copies oj the prospectus

these securities under

applicable securities laws.

Dillon, Read & Co. Inc.
Blyth & Co., Inc.

Blair, Rollins & Co.

Eastman, Dillon & Co.

Incorporated

Harriman Ripley

Goldman, Sachs & Co.

Kidder, Peabody & Co.

& Co.

incorporated

Smith, Barney & Co.

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

White, Weld & Co.

Corporation

chemicals,

the pharmaceuticals and glass.
Thirdly, mere has been

an

in-

♦

Union Securities Corporation

G. H. Walker & Co.

This, how-

important item
the

$17.50

we

have the investment public turning to so-called growth stocks. I
say so-called growth stocks because

issued warrants, expiring February 14,1952, to holders of its

Stock, evidencing rights to subscribe for these shares at the rate of

re-

of this development has been to
emphasize the quality stocks and
to
push their prices
rather
strongly as against the medium
grade stocks. I think if you made
a study of the advance in insurance company shares for 1951, you
would find that about 10 or 12 of

over




is

investing over recent
years.
One has been the injection
of pension fund and trustee buying of common stocks. The effect

seminar

1952.

This

This

that there have

major changes with

Dean's

";c^;J^.U"rdr'F'L?«h:0Ncw

This announcement

to

spect

ous

/York City, Jan. 26,

stock

would have to rise to 677 in order

del*.*,"7" ,'Km"Ban5ig°LdFi^l" growth issues
held
in
conjunction
with
the
Day Home-Coming for Comnierce

utilities did reason-

averages

on

6%

whether

*n dividend, rates,

to 206 as of November,
advance of 248%, and the

Dow-Jones

grade equities providing a return

^doubtful

•

of farm property has way outrun

price-earnings ratios, which factors should continue as strong unmar-

na-

the

The Department of Agriculture's

are

..

tn«re will be any major reductions

The rise in the value

ratio.

same

the

common stocks
provide generous yields and
selling at relatively moderate

tural gas and

air

stand

thejugh level established in 1951,
still

equipment, machine tools,
equipment,
^
transport, bituminous coal,

around the middle of -March when

large tax settlements must be
made, I am very doubtful whether
any such reaction will carry below
the November lows of 255, or the
June lows of 242. Nearly 200
listed companies last year either
split their common stock or paid

The Dow-Jones

averages

prices, as measured by Dow-Jones
Industrial Averages, are close to

nigh-grade, sound

lead and zinc, installment

hnancmgy Office equjpment,, farm-jt

velop from .time to time, perhaps

an

increase of 106%.

of

cautious and now show increasing
satis- pessimism. From ^my point .'.of
; view, 1 find that
one Jias to have
a challenging front towards the
market and that >good profits can
be made this year .in many groups
and specific situations; While gen¬

.

sli^itly better than twice 1929
severe

as

S" S ^' S'°a flvorS
SoSd

®

tOrtte-rfutureiiMfise of^ the d^lar'WCTe
^blllion, of-currencyin. divergent mOTtetariion of
and that^ in many respects, it has circulation while. this figure on g*oOi>S> I oould shoWf^that the^^key*
been, bttying- cwnmon stocks as a Jah. 5, 1952 stood at $29.1. billion, note of the market for. the past
hedge.
>■.
V
;;
an increase of about 341 %. The^ year or more has been selectivity.
P^8* as,_brokers loans of about
Although income taxes reduced averages would stand at 800 today Last year the ruhterstchemieais; $675.
m
last yearns corporation profits to were they selling at the same oils; proprietary and ethical drugs; .relation to-tne .approximate
$18.1 billion, from the 1958 peak ratio to: currency in circulation as aircraft , manufacturing,
invest- hhlion valuation o^Iisteci stocRs.
of $22.8 billion, earnings were still prevailed at the 1937 market top. i ment -trusts -of the leverage type; Altnougn L,_can see a moaerate
Sulto.: The

with -member firms, .alone

dicatingj sales Of $480" million for year's-disappointing performance.
Dec. 31, 1951, were :high amount¬
With. large military orders, the
ing to $824 million. The ^funda¬
mental analysts have^alsobecome

The Milwaukee Company

Rauscher, Pierce & Co. Inc.

14

The Commercial and Financial Chronicle

(574)

fessors

of airplane accidents, and
and to persons at home, says
needed remedy is to discover some partial insulator of gravity.
Reveals work toward that end of Gravity Research Foundation.
passengers

ings

and

Last

week

85
air¬

plane the more dangerous it' will
be for all concerned when it falls.

pre¬

Moreover, many believe that the
bigger planes are more liable to

that

read

you

ceding 38 days in Elizabeth, N. J.,
and yet noth¬
ing is
being
done about it.
I believe it is

crime

a

against

the American

people for the
airplane com¬
panies
do

to

not

to

more

such

prevent

It

accidents.
is

they

get

a

so as

plane

a

is

destroyed,
replace lives
which they destroy. In my humble
but

no

insurance

judgment,

can

their

attitude

all

is

wrong.

Cause
A

few

of Accidents

airplane accidents

occur

from running into mountains dur¬

ing fog

storm.

or

eliminated

by

These

the

being

are

latest

family to be burned
The

modern

altitude instruments and by radar.
With good working instruments
and

bright-eyed pilots these acci¬
dents should no longer occur.

New

discover

gravity.

gasoline

all

and

the

gas

This throws the

the occupants.
Some electric spark starts the fire
over

and the passengers are

ered

all smoth¬

burned to death.

or

In

short,

•"Old Man Gravity" is responsible.

that the
discover

weight
be

with

plane
have
jnot

and

severity as more
and the size of the

increases.

companies
the

tell

would

planes

and

alloy.
plane would

much

lighter

liable

Beaver

When

the

advertise

air¬

they

biggest planes, they do
that the bigger the

you

Street,

members

it

to

be

would

be

be

New

York

and

of

liable

How. Airplane Companies Reply

airplane

companies

claim

that scientists say it is impossible

a

a

My

partial insulator for
answer

is that when

student at the

Massachu¬

setts

Institute
of
Technology I
taught that it would be im¬
possible
to
use
commercially

machines.

Pro¬

To keep the theme going, leaving it in a
shape that it can be brought out again on an¬
other dull mental day, the trick of the trade
is never to write with finality, never make the

statement

definitely as to whether he will or
again. Get a new angle, talk to
one day and write that it
can be passed
on directly from the feed box
that the man is tired, feels he has served his
country well, has a right to retire and is look¬
will not

the

ing over the field of those who might possibly
fill his shoes. But if you wish again to return
to this theme—and it is an awfully long time

City

Roy

London,
general

a

New

York, is also

formerly with
Company

of

associated

now

a

locate

worthy successor, one who. can honestly carry on as he has
therefore, he, Truman, may decide he must make

a

This
about

with the firm.

writer

has

box stuff either.

an

buy

offering of these securities for sale

any

a

intimate contacts

to him.

But he replied very

"Don't be

Cooney Heads Hirsch
Mutual Fund Dept.
Hirsch

&

New

York

Co., 25 Broad Street,

York

nounce

City, members of the
Stock

that

as

manager

tablished
ment.

William

was

an¬

Cooney

with

of its newly

Mutual

He

L.

associated

become

firm

Exchange,

the
es¬

Funds .Depart¬

formerly with Har¬

the firm

tative

as

in

a

the

promptly:

leave the White House."

The soundness of this observation has governed me in

sideration

of

Truman's

intentions.

I

didn't know

to

registered

an

offer

with

My

life with Presidents, so to speak, began with Calvin Coolidge. And
he didn't want to leave the White House. He wasn't tired Or worn-

But in his day and

the slightest.

time it would have been shocking to the

country had he openly sought another term. Others, however, had
started a "draft" movement and there has never been any doubt
in my mind that he hoped up until the time of Hoover's
tion at Kansas City in 1928, that it would succeed.
Roosevelt knocked the coyness of
and

tradition into

nomina¬

cocked hat

a

went

pretty ruthlessly after the third term. For a while he
played the game that Truman is now playing; that he wanted to
quit and that the field

was

wide open for other aspirants.

One

Paul McNutt

began making headway, and the Roosevelt hangerson, thinking the mantle was to be McNutt's, began jumping on his
serious and the inner Roosevelt crowd took

bandwagon.

This

firm action.

One member

Internal Revenue

was

was

slyly told newspapermen one day that
probing McNutt's income tax returns to see
winnings." That was the end of the

represen¬

a warning to any other aspirant not to
trouble. So at Chicago, several months later, there were
contenders and Roosevelt permitted himself to be drafted.

candidacy and

make any
no

office.

be construed

solicitation of

my con¬

work

or

George Washington, Thomas Jefferson or Abraham Lincoln.

McNutt

Arnberg has joined

main

feed

if he had reported his "poker

ris, Upham & Co.
Harold. B.

or

silly; the President has never lived who wanted to

out with the burdens of the Presidential office in

circumstances
or

no

But I did ask one of his

The

difference

between

to

of such securities. The offering is made only by the Prospectus.

accomplished

Roosevelt

what

and

accomplish, however, is that New Deal
and New Deal labor and political bosses were enthusi¬

Truman

hopes to

His renomination meant maintenance of
the merry-go-round; none of the
whom the next nominee would

astically for Roosevelt.
as

time had the slightest doubt

any

I claim

confidants, several weeks
ago, what he thought the President might likely do. This fellow
made no pretense of Truman's having told him or hinted anything

Senators

no

at

never

Truman's intentions.

what

This advertisement is not, and is under

Carlisle Bargeron

carried on, and

their firm.

Guaranty Trust

run

of his "friends"

one

„

was

heavier-than-air

become

Howard C. Davis

other

less

has

partner in

much

hence

76

that

announce

England,

so

engine

and

else.

the sacrifice again."

Stone,

&

Robinson

Desmond

Besides, the
would

umnist

now and July—you had
better leave
loophole as this: "Now, while the Presi¬
dent would dearly love to lay down the office
to another, it may be that he won't be able to

of the New York Stock

Exchange,

The
then

to fall.

was

Roland

question of whether President Truman
will not run again. It is a saving theme for the daily col¬
when his noodle finds it impossible to turn out anything

between

Davis Joins Firm
Model,

New

difficulties

I

officer

an

Model, Roland & Stone

fall need not

a

contents

the

would

this

the

plane

gravity.

planes

which

fatal disaster.

in

fly

for

discovered

is

all

of

to discover

planes

insulator

alloy

an

reduced that

so

The
ac¬

formerly

Robinson Partner in

This

airplane companies could

cidents will continue and increase
number

partial

a

of

cause a

less

was

Maloney & Wells, Inc.

has

that these fatal

problem

or

such

of

means

accidents.

these

insulator

exterior

Tonight
means

one

partially insulate gravity if they
would only combine and
spend
the money to do so. When a par¬

Your Home May Be Destroyed

This

this

This Foundation believes

causes

ground

of

Bosljon, N. H., is helping to

down which

the

Mr. Wells

gravity, although heli¬
also help in solving
the problem. Insulators exist for
light, noise, fire, air, heat, cold,
magnetism, electricity and even
atomic energy.
The work of the
Gravity Research Foundation at

covered

to

in

Washington

fanciful stuff to come out of

Some of the most

these days deals with the
will

some

may

or some

tanks to explode.

interest

an

because

of

lator

copters

wing failure
drop

take

of the News

By CARLISLE BARGERON

he

discover'some partial insu¬

to

tial

the airplane to

up.

Remedy

only

preventing
is

The major cause of airplane ac¬
cidents is their engine trouble or

other break¬

Needed

is

There

to

new one

when

if

Sbearson, Hammill Co.

their

planes

that

today he would agree
gravity could be partially
overcome.
I ask every reader to

Walter M. Wells Joins

tire

A head

here

that

airplane may fall on
fall.
your house tonight and burn up
It is not only those who travel you and
your family.
in planes who are running the in¬
creasing risk as bigger planes are
built.
Every reader of this col¬
umn, including those who never
use air travel, is likewise subject
to great danger, as was evidenced
(Special to The Financial Chronicle)
in Elizabeth, N. J.
An airplane
BEVERLY HILLS, Calif.—Wal¬
going over your house tonight ter M. Wells has become associ¬
may fall on your house and cover
ated with Shearson, Hammill &
it with gasoline, causing your en¬
Co., 9608 Santa Monica Boulevard.

in-

can

sure

Roger W. Babson

that

true

believe

we

Washington

to¬

use

the third largest collection in the
world of Sir Isaac Newton's writ¬

were

people have been killed in
plane accidents during the

From

discouraged

great inventions in

day, claiming that they were im¬
possible. The Babson Institute has

Mr. Babson, in reviewing causes

both to

have

Scientists
many

their dangers

Thursday, February 7, 1952

and

practical.

By ROGER W. BABSON

.

taught us that only bal¬
dirigibles would
be

loons

Airplane Accidents

.

.

the status quo for the riders on

hazards of having to guess right on
be.

Similarly, there were genuine demands

for the

drafting of

It came from Senators, office-holders and patronage
dispensers who didn't want to gamble on a new nominee. A new
Coolidge.

President

even of the same party means a lot of upheavals in polit¬
positions and prominence. Every new President brings in
his own crowd; sooner or later, he gets rid of his predecessor's
appointees.

350,000 Shares

ical

Servomechanisms, Inc.

It is this political truism

that caused Truman to say smugly
that regardless of primaries, he could have the
nomination again if he wanted it.

a

few days

But

Common Stock

must

ago

what

give

is

him

unusual
pause,

is

about

that

the

there

situation

current

is none of the

and

what

enthusiasm

drafters—those who owe their political meat and bread
as
there was among the drafters of Roosevelt and
Coolidge. The drafters seem to be of the mind that they will draft

among the
to him —

Truman if that is his will but they

Price $5.00 per share

would

think they would

don't particularly like it.

have to deal with the uncertainties of a

Copies of the Prospectus

may

be

obtained'in

the several underwriters named
as

may

in the

any

State only from such of

Prospectus and others

lawfully offer these securities in such State.

You

be tickled to death because they won't
new

nominee.

They go

right along in their jobs and positions of power, assuming, of
course, that the Democrats win again. But they don't seem to feel
this way. Take Senator Joe Humphrey, for example. He is the

stalking horse for Truman in Minnesota.
great Harry Truman's reelection.
voice.

All

over

the

He says he is for the

But there is a hollowness in his

place you see these fellows bobbing up and

saying they are certainly for Harry Truman, but adding, "if he
runs

Van Alstyne Noel Corporation
any

Courts & Co.

Francis I. duPont & Co.
'V,

again, and if he doesn't, I'm for, etc."

This is not the way

that he is the only man who will do so.

this

feeling

"draft" him.

February 5,1952

li



of the true drafter.

He will not hear of

suggestion that his man is not running again; he is insistent

among

those whom

There

Truman

seems

must

to be none of

count

upon

to

It is strange because I think that Truman would, by

odds, be the best candidate, with Eisenhower unavailable to them,
the so-called Democrats could

put up.

Volume 175

Number 5088

.

.

The Cortimercial and Financial Chronicle

.

(575)

Predicts, however, in 1952, total

in

is

likely to rise

What

with

their

Interestingly,

half

of

.1951

permitted

(2) The lag in

was

by

NPA

spend¬

consumer

not merely a cor¬

was

a

close look at

the

1951

ord.
did

2.2%
went

rec¬

What

basis, the
underbuying since
already exceeds the

spring

with

2.3%

their

for

Why

is

dollars?
did

for

they

be¬

the

way

have

personal

is

income

services.

of

spendable

Today the figure

1.8%.

Obviously, then, the lag in

con¬

spending for goods in 1951

Spend¬

3.

Consumer Spending for

ing for Goods

Hard

and Services

*

Goods

to

Dr. Leo Barnes

last

spring,
consumers
have
tantalizing the economist,

1947-1948

whole,

a

been
annoy¬

goods

levels.

spending

took

for

12.2%

spendable

sumer

pockets than

be¬

ever

fore, they haven't been spending
their
money.
Instead,
they've
been

by $3.2 billion—more than

in all four quarters of
or
1949.
In the third

either 1950
quarter

consumers'
once

of

liquid

sav¬

to

$5.7

more,

billion—the highest quarterly to¬
tal since the end of World War II.

Preliminary figures for the fourth
quarter of the year suggest that
savings rose once again, possibly
to

much as

as

$6 billion in liquid

form.

the

the

year

saved

sumers

their

as

spendable

largest

whole,

a

than

more

con¬

8%
one

income,

of

quarters

of

income,

1950

and

the

the

1951,

fundamental

change?

long-term

Perhaps

economic

we

find

can

the

answer to these riddles by
analyzing consumer spending in
in

somewhat

first

total

Consumers

income

is

and
over¬

spendable income

mobiles and

3.9%

1949 and 6%

biles

auto¬

parts, compared with

in 1947, 4.0% in

propensity

4.8%

on

rising.

A "normal"

to spend

should

be

in

for automo¬
neighbor¬

the

hood of around 4%.
Much the

furniture,
household

that

Consumer

spending for this category reached
a high of 6.4% in 1947 and in 1950.
By the fourth quarter of 1951
dropped

below

5.1%,

to

large,

greater

detail.

Spending for Services

feel

they

need

has

occurred

rience.

of pre-World War II
expe¬
In
1929, 38%
of
con¬

sumers'

for

spendable

services

like

income

rent,

went

elec¬

gas,

tricity, recreation, transportation,
medical

of

insurance and edu¬

care,

cation.

In

1951,

spendable

less

than

income

30%

went

for

Rents took

similar services.

less

than 10% of spendable income last

compared with

year,

in

1929.

This

largely
mate

to

lew*

rent

sumer

of

rent

undoubtedly

spending

11 %-12%

deposits,

bonds

assets.

Since

living

has

the

and

to

liquid

asset

1950,

has

11%;

position

equivalent
as

in

would

June,

have

to

have

about

other

liquid assets than they had

14%

just

before

mean

about

reserves

put U. S.
relative

a

liquid
about

Korea.'

and

cash

That

would

$190 billion in liquid

would

be

required

to

in the

same

position

that

consumers

financial

had

now,

-

more

before

Korea.

Right

for

services.

In

other
the

assets

of

individuals

$182 billion.

is

By mid-year,

on

of

5.2%-

from

ratio

of

the

to

4.

in

*An

address

York

by

Institute

of

particularly
shoes,

in the

clothing,

be¬

(b)

of

more

result

a

liquid
than

for

more

would

rules

credit„

took

away

the

potential market for
hard goods in 1951 and will prob¬

a

ably continue to do so in 1952.
However, tougher credit is usu¬
ally, only a temporary deterrent
to

just

longer

soft

who

consumers

They

seem

be somewhat different for

instalment

credit

of

some

fundamental

causes

Tighter

Tighter

save

have

to

down

get

want

to

the

up

payment

to

buy..

a

little

save

necessary

maintain

to

and

the

(4)

Soft

least

goods.

three

There

special

factors

may have something
the soft goods lull:

(a)

to

do

that

with

Greater

called soft

durability of
goods. Thanks to
and

larger monthly
or
weeklypayments required.
The trouble
with the hard goods market 1*3

at

are

more

r e a

t

e r

informality

Future

than formerly.

result

of

ac¬

be

sales

lower.

We

of

most

largely

have

hard

unprecedented
with

the

new-

to

con¬

goods

peaks,

above-average

hard goods

less

means

be

than

tend here not only with the postKorean buying spree which sent

Less going out as

television

will

rather

business; and replacement volume
will

1946

up to
but
also
sales o£

during the whole post¬

replenishment

war

for variety of clothing cos¬

need

business

replacement

cepted as a social custom.
Sport
attire is more generally acceptable
a

goods, the potential,
being saturated

market is close to

clothing,
shoes
and other textiles last longer thap
they used to. This trend is likely
to
continue
(neolite, nylon, dacron, etc.).
,
G

For

hard

many

manufacturing,

(b)

It I'*

Market saturation.

sonew

efficient

more

fundamental than that.

(c)

boom

from

1950.

to

tumes.

Thus, by
(c)
hits
the

Redistribution of income

soft goods.
former

total

Connected

than

with

point is the fact that

national

income

is

the end

steadily

there

being redistributed to favor lowincome groups
terns

are

concentrated

3,700,000

and high-income groups.

600,000

it

a

frequently buys d used

clothing

set

before

standard

of

car

or

raising

that

a

its

cars

trucks

of

1951 hit the middle classes harder

have

than

most

at

the

still

more

up

::r\

them

(an
trai>

unused

in their*

time in history.

any
same

other

high

wh

junked

were

record)—it's

picture is truo

consumer

Continued

than most other groups.

very

more

mileage stored

Much

Moreover, the inflation of 1950-

Whiio

War II.

and

car owners

motor

living.

more

trucks

still lots of prewar car*

cars

family gets additional income all-time

television

and

autos

scrappage rate last year,

car

on

When

most of the

of World

are

clothing than those of the middle-

poor

now

million

being used—witness the

whose buying pat¬

less

50

the road have been built sinco

on

on

durables

page

3/

an

offer to sell

nor

a

solicitation of

any

offer to buy securities.

and

low

630,000 Shares

case

sheets

and

all

In

rugs.

these

the percentage of spendable
income spent for the items cov¬
cases,

ered

the

was

lowest

Owens-Corning Fiberglas Corporation

record.

on

Common Stock

clothing and shoes, only 8.85%
spendable income was used by
in

consumers

ratio

is

ratio

rose

point

1951.

about

it

to

10%.

11.7%,

before

(par value $5

normal

A

In .1946,

from

the fourth quarter of

Similarly,

the

a

Price $35.75 Per Share

1951.

textiles

semi-

and

normal ratio

of

1.1%.

A copy

In

of the Prospectus

Underwriters

instances, part of the drop in
later part of 1951 is to be-

since,

the

_

which

durable
house
furnishings have
dropped to 0.9% of spendable in¬
come in the fourth quarter of 1951
both

share)

has

dropped steadily to
the present low of about 8.-3% in

from

per

this

* as

we've

seen,

the

1951

as

may

Ripley & Co.

may

be obtained within

any

State from such of the

regularly distribute the Prospectus within such State.

Lazard Freres & Co.

White, Weld & Co.
Eastman, Dillon & Co.

Blyth & Co., Inc.

Incorporated

yearly average is below normal.

Glore, Forgan & Co.

By contrast, consumer spending
for food
has been sustained at

Merrill

Kidder, Peabody & Co.

Lynch, Pierce, Fenner & Beane

Lehman Brothers

Smith, Barney & Co.

high levels throughout 1951.

Stone & Webster Securities Corporation

on

Credit, New York

is made only by the Prospectus.

semi-

and

Why the Spending Lag?




less
to

hard

some

durable house furnishings such as

Harriman

period,

spending1

Dr. Barnes

level

and

Spending for Soft Goods

1951,

of

services, especially rents.
New

By

'

(a) Higher prices of
goods, like autos.

they have

goods than for hard goods.

Consumers' inclination to spend
on soft goods was
remarkably low

than the amount of the overbuying

the cash

goods

City, Jan. 30, 1952.

total

These

causes.

The offering

to

up

abnormally

consumer

is

look

must

This announcement is neither

in¬

con¬

goods particularly benefited

most

wage

it

Goldman, Sachs & Co.

control

postwar

labor,

several

than 20 million white

in hard goods are:

consumers gener¬

explain the lag in consumer
spending, it thus seems that we

good estimate of the total

Nonetheless, the correction for
this overbuying has been greater

Ulti¬

rent

more

collar

amply

To

grown

words, to get

same

consumers

of

cost

about

up

In other
the

liquid

the

population

about 3%.
back

other

then,

gone

de¬

currency,

and

plained by the post-Korean over¬
buying in the second half of 1950
and
the
first
quarter of
1951.

due

spendable

cutting in

available-

14%

send

for

their

of

come—thus

hard

almost

figure is

controls.

elimination

would

The

assets

since

5.3%.

of

Spending for services continues
proportionately
far
below
the
norms

Most

they don't spend
they've
decided

cause

For
2.

union

slightly

"normal" level

a

time

they

story is true for
appliances
and
other
same

equipment.

to

received

boosts,

consum¬

again

save more because
decided to spend less.

for" materials

larger supplies of cash and other
liquid assets to match the price

1948, 5% in

in 1950.

of saving.

pe¬

a

explanation

may

now.

spent

consumers

themselves

contrast

of

How explain this sudden de¬
cline in the "urge to splurge"?
Is
it a
temporary aberration or a

1951

In

savings ratio

non-war

record.

on

previous

partial

A

fense

quarter of 1951, the propensity to
spend
on
hard goods is corre-,

had

For

(3)

and

of their

soared

shorter

the

the. prolonged sag in consumer
spending is the fact of inflation.

con¬

In the second quarter of last
year,
consumers'
liquid savings in¬

ings

when

hard

spondingly below normal

year,

riod

all

saving it at virtually the
highest peacetime rate on record.

last

both

than

buying phase—especially in

total

of

Once

ally

so

Korea.
In June, 1950, consumers
1951, as" had about $168 billion in demand

For

the merchants,, baffling the same ratio as in 1948, and close
manufacturers, and amusing tne to the 12.6% ratio of 1947.
Here,
skeptics.
While, by and large, again, due to the extensive over¬
they've put more spendable cash buying in the third and fourth

creased

that normally the
underbuying
phase

be

smaller

inflation

ing

their

should

or

Spending for hard goods is back'

in 1951

into

forgotten);

corrective

To¬

In 1946,
income went

can't be due to the higher cost of
services.

1. Total Per¬

Since

spendable

recreation.

sumer

they did?

sonal

total

in closets where it deteriorates

1947,

day the figure is 1.8%.

consumers

do

of

In

In

which

cause.

statistical

a

total amount of

are

last-

television for that!

feel

ers

more.

spendable cash in 1952 will also now
spending proportion¬
overbuying.
Presum¬
partially be determined by what ately less on personal services previous
also, some overbuying is
they did—and didn't do—with it and recreation.
Blame the maid ably,
in 1951.
Let's
shortage, other labor shortages usually wasted (stuff is put away
and

savings.

consumer

period. On

consumers

record

therefore take

liquid assets will probably be up
$90 billion as a* result of high

to

rection for earlier over-buying in
the
post-Korean
scare
buying

buying power, on other
savings will be slightly reduced.

consumer

do

consumers

second

levels

ing in 1951

closer to levels warranted by available

hand, predicts

spend

quotas.

bit

a

the

below

spending for soft

consumer

goods, hard goods and services combined

to

urge

is

-

over-buying, but feeling that more indi¬
are
required to match current inflation.

reserves

case

This

workers, salesmen, small
soft
loaded with cash, they may then
proprietors, etc., actually found
were
abundant—in
be inclined to spend a
fact,
more
larger per¬ that their optional spending powerthan
abundant.
In
most
hard centage of their available income. after
higher taxes had declined
goods lines, too, the shortage of
This theory certainly
has its rather than increased.
This hurt
customers in
1951
was
greater statistical attractions.
However, clothing sales especially hard.
than the shortage of materials— it
probably is also putting the cart
(5) Hard Goods. Three special
steel, copper, aluminum or other before the horse. Surely, inflation
factors that help explain the lag
metals.
In most lines, production is more the cause of
spending than

consumer behavior in
1952,
spending in various categories during past
Notes spending lag by consumers in 1951 was not only a

correction of earlier

since the

II.

substantially in many
goods areas, where supplies

consumer

vidual cash

the

was

War

decreased

Barnes, before forecasting

year.

as

World

evident,

By LEO BARNES*

reviews

supply,

during

Economist, Frentice-Hall, Inc.

-Dr.

of

age

Consumer Spending
And Saving in 1952

15

(1)
tion

The low
to

spend

not to be

consumer

in

most

of

inclina¬
1951

is

explained by any short¬

Union Securities Corporation"

February 7,1952.
■"»

The Commercial and Financial Chronicle

(576)

1«

Robert

Continued

Torpie With
F. Reilly & Co.

J.

from

5

page

outside the

Transamerica,
,

-

able
not

merely becoming sidetracked

the

government over confiscatory taxation,

acting

of each of

case

these three

former overpricing.
The discount there has not
from inadequate earnings.
The pre-dissolved utility

from

stemmed

customarily sold at only about 8-to-10 times earnings; the closedend
investment companies have been giving relatively liberal
ordinary-income yields; Transamerica last year yielded 6%-plus
on
the dividend, and 12V2% on underlying earnings, and Marine
Midland's mean dividend yield was a good 5.2%, and earnings
yield
In

A.

A.

Torpie

has

Torpie

become

associated with J. F. Reilly & Co.

Incorporated, 61 Broadway, New
York City, in its trading depart¬
ment.
Mr. Torpie was
with Merrill Lynch

formerly

the

case

special

of

a

listed companies,

multitude of good

categories,

as

These evidences of

quantitative value,

as

Liquidation via merger happens, perhaps too infre¬
quently, in the industrial field. It has also been witnessed in the
open-ending of closed-end investment companies to
take advantage of the prevailing popularity of the former-type of
fund.
In the bank stock field, fortunately for the shareholder,
some
remedy for his plight exists in the usefulness of a lowearning bank's assets, sometimes importantly for its branches, by
another institution.
\
agement.

with

well as the flight to

The

chips, seem to be the result of the prevalent investment
climate, accentuated by the confiscatory personal income tax
brackets, realization of whose emasculating effect on stockholders'
take-home pay

Superintendent's Worries

Nine mergers of New York City commercial banks have oc¬
curred since

1948, the absorbed banks having had capital accounts
$80 million.
Superintendent Lyon is troubled about
because thereby "the character and structure of
our
banking system are being shaped to that extent by purely
speculative forces. It is only coincidence if that sort of thing
of

about

bank

mergers,

operates

in the public interest";

allegedly

ensue.

We believe that Mr.

blue

Walston, Hoffman Adds

to indulging in squawking at
or in needling man¬

occasional

market

the

Francis I. du Pont & Co., Jan. 27, 1952).

Pierce, Fen-

& Beane.

ner

10%.

price represents a liberal
"discount" from value—the value being based on various quanti¬
tative criteria.
Over 100 listed companies are selling at less than
their net working capital after deducting all prior obligations
(cf. Standard and Poors compilation in the "Chronicle" Nov. 1,
1952 p. 35) and there are at least 40 representative industrial
companies w,hose retained profits over the past decade alone ex¬
ceed the current price of their shares (cf. "Market Pointers" by

these

Robert

Availability of proper implementation to remedy an inequit¬
earnings-on-assets situation should be taken advantage of;

categories, the market pricing

largely the result of psychological factors, such as prejudice re¬

is

-

or

to whether the

the somewhat more restricted Marine Midland

or

being subjected to those of the management, in¬
controlling stockholders; and also is irrelevant
inadequacy of earning power results from factors
beyond management's responsibility.
are

cluding insiders
.

Corporation which holds New York State banks.
In the

Robert

question whether the interests of the public or outside

shareholder

Observations..

Thursday, February 7, 1952

Such consideration may well lie wholly

from their invested assets.

;'vv-';

..

.

because "windfall"

and

profits

Lyon is troubled unduly. He has disclosed
term "windfall," which excerpt from

this writer that by the

to

his speech has drawn wide

attention, he means a promoter's profit
a situation; in lieu
popular dictionary definition as "a piece of unantici¬
pated good fortune; lucky happening or gain, as a legacy." Surely
there is no objection to the long-suffering under-water share¬

which is something not native or inherent in

is beginning finally to dawn on them.

of its more

Three in New York

The Bank

members of the

Exchange

and

changes,

New

York

other

Stock

leading

ex¬

that. Guy

announce

Icangelo, Howard F.

Schroll

Ernest

C.

become

Cappel

sociated
York

have

with

the

firm

in

and
as¬

New

r

':*>

banks, whose shares cus¬
tomarily sell at liberal discounts from their asset values, on the
other hand, results largely from the inability to net commensurate
earnings or dividends. Earnings on capital funds by state banks
were in
1950 only 5.77% in New York State and 5.41% in New
York City; dividend related to capital funds being but 3.49%
for the State as a whole and 3.59% for the City institutions.

Icangelo,

who

ously associated

too

previ¬

was

with

by the good fortune to get bailed out. And if
promoter to bring this about, neither the presence of
his fee lessens the constructive end result of the useful

him

a

or

service

for the buying bank and for the stockholder—activity
promoting the public interest in the free market economy.
Also it must be remembered

that the bank merger is subject
approval not only of the buying institution's management,
directorate, and shareholders; but also of the government author¬

lowered price, in terms of investor

ities, including the State Banking and Federal Reserve authorities,

adequate yield necessitates

an

member

a

holder being stuck
it takes

equal to asset value therefore would obviously yield
little in terms of dividends and earnings.
Hence adjustment for

Market price

City.

Mr.

Stock Discount

the commercial

The situation with

Walston, Hoffman & Goodwin,

firm of the New York Stock Ex¬

interest and

change, is

a

to the

determined

of

Southern

California

and

will

be located at the firm's office

the Waldorf-Astoria. Mr.
who

at

will

35

be

Wall

at

Street,

associated with

the

New

the

office

Stock

Bankers

own

was

se¬

the NASD.

He

associated

with

Trust

also formerly

was

the

Company.

Mr.

FDIC.

the

and

exist, it points up the

.Company, New York

20

National City Bank, New York
Public National Bank, New York

con¬

ditions, both governmental and non-governmental.
The barring
of mergers or official screening of stock purchases, by government
dictum, and the driving out of investor capital, would merely
promote socialization—a conclusion likewise applicable to our
entire corporate investment structure.

19
6

& Trust

14

Northern Trust

.

Socialization

necessity for increased earnings, now hindered by policies and

20%
15

Bank

Earnings and

the extent that merger abuse does

To

New York

Guaranty Trust Company, New York
Irving Trust Company, New York__

Jersey City, N. J.,
registered dealer with

a

some

Bank, New York

Trust

Chemical

curities firm in

and

prevailing for

Avenue, New York
Company, New York_

Chase National

Exchange.

Prior to that, he had his

now

Bank of New York and Fifth

formerly

was

are

City and other banks:—

member firm of

a

York

(sometimes understated)

in

Schroll,

firm's

(value to the shareholder not being

solely by the stored-up untouchable assets).
So it
is that the following market discounts from admitted book value

graduate of University

a

also real value

42

Guaranty
Cappel will

American

Coincidentally,

8

14

Company, Chicago

Trust

we

observation in

overseas

have just received the following relevant
a letter from a British friend, a leading

financial editor:
;

located

at

the

firm's

staid

"The

British

investment trust movement has got
It's raising its cash dividends left} right
(although still being conservative) and is also

Company, San Francisco___
Bank, Los Angeles
National Shawmut Bank, Boston

1370

Alvin

W.

Seligman

will become

a

Feb.

on

15

partner in Richard

bers of the New York Stock Ex¬
Mr.
a

Seligman

partner

in

was

for¬

Seligman,

Lubetkin & Co.

paying out big bonuses in scrip. In fact, all this is to meet the
familiar criticism that the trusts are ivorth more (a helluva lot
more) dead than alive; some critics have opined all the trusts
should be wound up! In part, there's a genuine desire to popu¬

Company, Detroit-.-.,

the wind in

Shareholder Rights

Alsberg & Co., 61
Broadway, New York City, mem¬
change.

19

It is not

K. Kaufmann,

merly

and

30

24

California

Broadway office.

Seligman Partner in
Xaufmann, Alsberg

18

Manufacturers Trust

be

question of legal right, of course; but the fair inter¬
ests of the shareholder include an adequate return on his assets;
and in some authoritative opinion, even the effect of
yield on the
market price itself is relevant. Frequently advanced, the "if
you
don't like

a

it, sell

your

stock" excuse is out of order.

the

new buyer backs
away, and the interests of
harmed through deprivation of new capital.

In any event,

the

larize

obligation is due thew shareholders of a public as well as
privately-held business, to weigh realistically and objectively
the propriety of liquidation when they are not
getting a fair return
a

the movement among working class savers to
to Socialistic tendencies."

Thus, in Britain too, there is direct positive correlation be¬
tween investment return

In the

case

shareholder should

neglected

Illinois Central

On

Equipment Trust Certificates

to

to

formerly

and dividends by

Hull

lead

to

even

Bell

of

Holton,

was

with

was

to

The Financial CriRONtcLE)

ANGELES, Calif.—Robert

Bates

has

become

VsAVWu

pany,

634

South

Mr. Bates, in the

McMASTER HUTCHINSON & CO.
.

.<

associated

with Pacific Coast Securities Com¬

& COMPANY

iUI.

Spring

Street.

past, was mana¬

of the trading department for
Los Angeles office of First
California Company.
•
•• ••

ger
the

Rothschild

F.

&

Co.,

120

Broadway, New York City, mem¬
the New York Stock

bers of

change,

announce

Johnston

with

the firm

bond

that James S*

become

has

in

Ex¬

associated

its institutional

Mr. Johnston
with Dick & MerleSmith
and
prior thereto
with
Bramhall, Barbour & Co. Inc.
department.

formerly

was

with Revel Miller &

Pacific Coast Sees.
LOS

FREEMAN

L. F. Rothschild 0of
L.

Rees Heads

F.




Mr.

Co.

&

(Special

February.6, J 952

only

Jas. Johnston With

Dept. for
Baxter, Williams Co.

Robert F. Bates Joins

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

ROTHSCHILD & CO.

officer

an

Co.

3.00%, according to maturity

HALSEY, STUART &, CO. INC.
F.

Calif.—Carl E.

William R. Staats & Co. and Miss

Issuance and sale

L.

it would

fact,

Dempesy-Tegeler & Co., 210 West
Seventh Street. Mr. Apponyi was

February 1, 1967, inclusive

as to payment of principal
Illinois Central Railroad
Company

yield 2.00%

in

Apponyi, Arthur R. Bell, Joseph
W. Lockwood, and Ann Trezise
have
become
associated
with

Trezise

J he

contrary,

LOS ANGELES,

guaranteed unconditionally

to

the

and

the community or the share¬

benefit to either

(Special to The Financial Chronicle)

(Philadelphia Plan)

Priced

no

Apponyi, Others With
Dempsey-Tegeler Go.

Equipment Trust, Series HH

To be

offers

further direction by the state.

$4,110,000

$137,000 semi-annually August 1, 1952

via

of rescue

segregation of ownership

Furthering the

regulation.

holder.

mature

take advantage

not

legitimate exercise of the profit motive, subject to the existing

control

To

and anti-socialism.

of bank stocks here:—pending the arrival of that

happy time of adequate earnings power, there is no reason why the

close

2Vs%

provide

antidote

some

economy are

The

of

center

its tail.

CLEVELAND,
Ohio.—Leonard
Rees has
become associated

M.

with

Baxter,

Williams

&

Co.,

Union Commerce Building, mem¬
bers

of

the

Midwest

Stock

Ex¬

change, as manager of the Mutual
Funds

Department. Mr. Rees was
Cleveland manager for

formerly

Hugh Johnson & Company and
prior thereto was an officer o£
Saunders. Stiver & Co.

Volume 175

Number 5088

.

.

The Commercial and Financial Chronicle

.

(577)

face

Sterling Area Reinforced

the need for a temporary setback in the
higher standard of living.
V

a

towards

progress

the other

can

claim to have done this the governments of

Sterling Area countries will be in

propose and enforce austere measures.

Dr.

a

better position to

The combined effect of all

Einzig, in reporting results of Conference of Common¬
wealth Finance Ministers in London recently, holds organiza¬

these

tion of

It is in anticipation of such a result that the statement issued
by the Conference laid stress on the need for restoring the con¬

Sterling Area has been reinforced by arrangements set

of views

despite difficulties and differences

Says,

LONDON, Eng.—It

widely expected that the Conference

was

between Jan.

and

Ministers which

Finance

in

the

15th

considerable

through

adoption

the

the

uniform

of

save

reason

the

horse.

to expect the

was

repetition

hoped that

a

restora¬

miraculous

a

this

strengthening
putting the cart

was

The first

step is to establish sound economic
conditions, and then, not before, it will become possible to restore
convertibility. If convertibility were to be restored in prevailing
conditions, the gold reserve would be exhausted in a matter of

The optimists anticipated a

Area.
of

reinforcement

no

convertibility would produce
sterling.
It is now realized that

before

in London

in fundamental changes

21st would result

of the Sterling

system

held

was

There is

of the absurd experiment of 1947 when it

tion of
of

of Commonwealth

undoubtedly reinforce sterling and will

vertibility of sterling.

among

to be weathering storm.

seems

will

measures

the Sterling Area.

for systematic contact between the Governments involved.

Sterling Area members, system

system

hours.

S. F.

Exchange
Standing Committees

the

crisis, and that conflicting views about the
measures to be adopted might lead to its dis¬

integration, or at any rate to its weakening.
In reality the Sterling Area emerged from the
reinforced, though not to the

arrangements have been made for
tematic
the

contact

Sterling Area.
the

was

the

between

-

ex¬

ernors

of

Conferences

of

Finance

the

Board

of

—

&

Richard

Youngberg,

In future, there will be "frequent
comprehensive consultations," and "steps

of

the

Ethics

Exchange for

Business

Howard
and

J. Greene, Sutro & Co.
Harry Meyerson, Kaiser & Co.

Finance—Arthur R. Mejia, Har¬
ris, Upham & Co., Chairman; Ar¬
thur
Gambarasi, Shaw, Hooker
& Co.; Palmer C. Macauley, Da&

CO.; Robert

Mulvany,

F.

Blum, Bush Slocumb &
Daniel J. Cullen, Walston,
Hoffman & Goodwin; M. J. Dun¬
can,
Calvin E. Duncan & Co.;
C.

Edward

Henshaw, William R.
Co.; R. Russell Hodge,

&

C.

Shaughnessy

W.

R.

&

Sutro &

time

measures

time

to

now

to

review

progress

Wild, First California

Public Relations—Richard Law-

Lawson, Levy & Williams,
Chairman; H. Hodge Davidson,
Bailey & Davidson; Charles W.
Fay, Jr., Hooker & Fay; George
J. Otto, Irving Lundborg & Co.;
Paul
A.
Pflueger,
Pflueger
&
son,

Baerwald; Albert E. Schwabacher,
Jr., Schwabacher & Co.; and Earl
G. Steel,

Davies & Co.

the

on

being taken and prosposed."

The contact is still far

from

being as close and systematic as between the Western .Eu¬
ropean countries through the Organization of European Economic
Cooperation and the European Payments Union.
Nevertheless

This

is

announcement

not an

The

offer to sell or a solicitation of an offer to buy these securities.
offering is made only by the Prospectus.

is being made in that direction.

progress

What

matters, from the point of view of those who attach
importance to the maintenance of the Sterling Area, is that in
spite of the differences that
ernments

of

Sterling
weathering the storm.

the

countries,

system

seems

the

sacrifices

necessary

to

be

It had been suggested that India and other

underdeveloped members of the Sterling Area would
all

$12,000,000

bound to exist between the gov¬

are

Area

should

made

be

by

insist that

Louisville Gas and Electric

with

countries

higher standards of living. There is no evidence that such a line
was in fact adopted or insisted upon during the Conference.
All
participants appeared to have recognized the need for making
It

would

have

been

much

too

to

,

however, that all
countries should accept some uniform device to be applied indis¬
criminately. This was possible in earlier years when the measure
consisted simply of a cut in imports from the Dollar Area. There
was no difficulty then in arriving at the uniform decision of cut¬
ting down such imports by the same percentage.- That crude de¬
vice

is

being replaced, however,

elaborate

system

symptoms
of

of

February 1,1952

expect,

the present occasion, by an
not so much against the

on

Dated

•

Price 101.467% and accrued interest

directed

measures

against the fundamental

as

Company

First Mortgage Bonds, Series due February 1, 1982, VA%

sacrifices in the interest of saving the Sterling Area.

In addition to cuts

causes.

The

imports from the Dollar Area and from other countries outside

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

the Sterling Area, various other measures are contemplated in the

United

\

Kingdom.

Many of these measures could not be applied
countries, or not to the same extent. It would be futile,
therefore, to try to elaborate a formula that could be applied

'

\

.

•

-

*

.

.

.

*

;

•

.

*

in other

everywhere.
the

Each country will work out

Conference

confined

itself

to

its

own

elaboration

the

measures,

of

the

and

The

HALSEY, STUART &, CO. Inc.
MERRILL LYNCH,

PIERCE, FENNER &. BEANE

THE ILLINOIS COMPANY

statement

issued

the

at

of

end

the

Conference

MULLANEY, WELLS & COMPANY

gold

strenuously to

means

THOMAS &. COMPANY

FAUSET, STEELE & CO.

declares

that the only way to prevent recurrent drains on the central
reserve is for
every country in the Sterling Area
endeavor to live within the

HELLER, BRUCE &. CO.

guiding

principles.

which are, or can be, available

•February 7. 1952

BYRD BROTHERS

,f

'

.

to it.

This may appear to be stating the obvious. Nevertheless, the
Finance Ministers were right in stating it, in order to make it clear

that

their

governments have

no intention of depending on pe¬
The statement declared that the first and
to ensure that the internal economy of

rennial outside support.
most

important step

each member

was

country should be sound, and all possible

This announcement is not

measures

This

should be taken to combat inflation.
It is in respect of such measures that each
its

out

own

salvation.

ment in the United

country has to work

$5,000,000

countries such as India. On the contrary, in raw material
producing countries capital investment is intended to be stepped
up in order to increase raw material exports and to reduce raw

oped

material

and

to

Central Illinois Public Service

imports from outside the Sterling Area.

From

an offer or a solicitation of an offer to buy these securities.
offering is made only by the Prospectus.

The

proposed reduction of capital invest¬
Kingdom could not be applied in underdevel¬

the

point of view of the
place the member countries

measures
on

to

sound

a

combat inflation
basis

First Mortgage

Kingdom is of the utmost importance. For, while it
if the United Kingdom is alone in adopting stern
measures, the other countries could hardly be expected to do so
is not enough

unless the United Kingdom sets an example.

In the past the guid¬
ing principle of the British Government was that the standard of
living of the British people must not suffer. On that principle it
was

impossible to restore sound economic condition

the

Company

the attitude

of the United

Dated

February 1, 1952

Bonds, Series D, VA%
Due February 1, 1982

.

Price 102% and accrued interest

inflated

or

to disinflate

,

purchasing power. In the absence of inspiring ex¬
ample from the United Kingdom the other Commonwealth coun¬
tries

were

also reluctant to make

a

real effort.

Today the situation is different.
ment realizes

of

that, deplorable

as

living is essential in order to

it will seek to achieve that end

The

it is,

a

save

present British Govern¬

reduction of the standard
the

Sterling Area.

preferably through

an

It is realized that the standard of

been raised since 1945 to

a

continued

bolstering




be obtained from the undersigned.

living had

HALSEY, STUART & CO. INC.

level at which it cannot be maintained.

Rather than undermine the

the

may

increase of

production, increased exports will be aimed at also through ruth¬
less cuts in home consumption. The standard of
living is no longer
considered sacrosanct.

Copies of the Prospectus

While

up

economic

February 1, 1952

stability of the country by

of an unsound position,

Britain will

.

Co.;
Co.;

Company.

will be taken within the next few months and

from

Gross,

Co.;

Conduct—

Agnew, Schuman, Agnew & Co.,
Chairman; George W.
Davis, Davis, Skaggs & Co.; Stan¬
ley R. Dickover, Elworthy & Co.;

vies

the current year:

and

P.

Chairman;

Ernest E.

and

William H.

Gov¬

of the San Francisco Stock

Committees

Ministers.
and

of

Exchange, has announced the fol¬
lowing appointments to Standing

Hitherto the only contact

occasional

FRANCISCO, Calif.—Mark
Elworthy,
Elworthy
&
Co.,

Chairman

more sys¬

a

governments

SAN

C.

For the first time

by optimists.

Listing
Stone

Frank

pessimists feared that the system
might not be able to withstand the strain of

tent hoped for

Berl,
Edwin D. Berl & Son,
Chairman;
Joseph
A.
Johnson, Henry
F.
Swift & Co.; Neil
L. Laughlin,
Davies & Co.; Harold W. Lutich,
Harold W. Lutich & Co.; Scott H.
Stewart, Jr.; and John C. Traylor,
Douglass, Van der Naillen & Co.

Stanley E. Symons,

The

Conference

Floor Trading—Warren H.

Staats

measures

aiming at the defense of the dwindling gold
reserve.

Irving, Lundborg & Co.; and Berwyn E. Stewart, J. Barth & Co.
„

Once Britain

By PAUL EINZIG

up

17

....

18

The Commercial and Financial Chronicle

(578)

The

rents.

Sshmick Vice-Pres. of
H. M.

The Business Outlook for 1952

Byllesby Go.

dent

Mr.

Director.

and

partner

of

Straus

&

was a

in

Blosser,

Chicago

from

flzo is

in

Director of several Chi¬

a

1938

1952.

to

He

cago industrial corporations.
milr

m

i

n

.i.i

i

i.

|

■,

r

■

■

i

■

■

ii-

This is

Enjoy
the

of

For 1952 the reverse seems
The declines and sidewise
movements will come in the early

government

months, and most of the rise will
occur
in the second half of the

rearmament.

whisky in the world!

The

of

rate

nitude

offer the following

will be accel¬
erated

or

by the

re¬

prospects of
war

or

peace,

by mounting
or

relaxing in-

ternatio

n a

industrial

of

1

218,

tension. These

may

but will

Garfield V. Cox

developments

lately

production,

probably rise to an aver¬

spending by business and dex, recently 188, is likely by then
by consumers as well.
to average 196.
Perhaps I should warn you that

The

expected rise in gross na¬
product is based
chiefly
an estimate of the increase

professional lifetime spent in tional
study of the working of America's upon
system of private competitive en¬ in the rate of rearmament. There
terprise yields no special insight are bewildering divergencies in
into what the communist leaders the sets of figures that pour out
of Russia and China may do this of Washington about both current
year. It does not even qualify one and anticipated rates of spending
a

predict how President Truman for defense. One source of con¬
or our Department of State will fusion lies in the fact that the Of¬
fice of Business Economics of the
respond to what they do.

to

illustrate out of my own

Department of Commerce times
its figures on government spend¬

experience. A few days before the
ing for goods by date of delivery,
North Korean invasion of South
not by date of order or by date
Korea I presented at the Midwest
of payment for

I have
Conference of the American Sta¬
made my own "guesstimate" after
tistical Association a general busi¬
many
hours of study of various
ness forecast covering the next 12
official and semi-official projec¬
months. I assumed that no Ameri¬
in

involved

I

pe¬

off

been tipped

invasion,

this

expect

become

that

within

war

Even had

riod!
to

would

forces

armed

can

I doubt

tions

that

basic

the goods.

in

differences

reflect

viewpoint, dissimilar statis¬

tical bases and differences in

cov¬

which

forecast

lished.

Schenley
of Merit
Whisky

Mark

I

predicted that

made

It appeared

was

pub¬

in print after

war.

based

forecast
on

higher

in the last
in the third
At annual rates

1952 than

offer

I

today

is

tension

will

be down

salary

and

wage

the risky assumption that

international

Whisky

month

a

quarter of

works will

The

International

lion

army

Basis of Forecast

Ask for the

gauge the economic effects of one

futile

in

On

case.

any

the other hand there

seems

small

this year lull this

sive
..

choice of connoisseurs
in 62 countries

Federal, state and local govern¬
employees will offset much
of this

measures.

The

most

inclu¬

is

the Department of Com¬
figure for gross national
income or product. The others are
Federal

Board's

Reserve

in¬

dex of the physical volume of in¬

dustrial

World's Choicest Blend

reau

of

production,
Labor

and

Statistics

the

Bu¬

index

of

prices.
Looking at the immediate past

consumer

Every drop of its whisky

we

that

note

for

1951

gross

na¬

tional

,

is 8 years old

or

older,

product
in
dollar
terms
jumped 15% over 1950. Physical
volume

blended with smooth

of

industrial

production

86.8

increased

10%

prices 8%.

spirits.

proof. 35% straight whisky.

I predict that all three

that

assumed

65% grain

neutral spirits.

i SCHENLEY DISTRIBUTORS, INC., N. Y. C.




higher

get

and

basic

personal income tax
operation. The lag in

into

rates

rearming, by dulling the expecta¬
tion

of

inflation, has

be

of

billion.

If my

product
mark it will

the

because

of

saving,

encouraged

the

error

this

on

the

For

final

of

segment

product

gross

turn to

we

even

1952, should

en-

finance

to

government

its expected cash deficit with less

•borrowing

the

from

commercial

banks.
Prices

Consumer
Let

ing

turn

us

the

on

to factors bear¬

now

level

of

consumer

prices. For the stability of prices
in

1951

give the chief credit

some

direct

to

attach

national

per¬

maintained

if

part through

able

reported

controls.

government

importance

more

to

I

the

tighter credit policy of the Federal
Reserve

authority,

con¬

and

consumer

international

ten¬

A major
in¬

reason.

the

remarkable

in

personal savings out of
Current, income. In the third quar¬
crease

of

ter

1951

after

total personal

taxes

from the
before.

was

the

increase in
whole

a

face

of

income

did

spending

billion

-

this

the

the

to

in¬

their

contributed to this remarkable de¬

velopment. One
of

the tightening
credit. Another was

consumer

the

was

over-buying
in

done
and

the

the

third

third

first

factor

had

consumers

quarter

quarter
the

was

of

of

'50

'51.

A

long period

of heavy consumer buying of dur¬
able goods in 1947, '48 and '49.

Finally,

consumers concluded

rearmament

croach

going to
civilian output

upon

much

or

as

soon

first

expected.

rate

of

result

savings rising to

was

10%

a

of

On

The

Korea

we

these

1947, '48
only 3.8%. The aver¬

the

has

may

for.

in

average

was

for

age

saving

"normal"

as

'49

and

of

five

been

quarters

6.8%.

since

With

con¬

durables
scarcer
by late
'52, with moderate restrictions on

sumer

credit

consumer

with

the

fear

prices

consumer

since

continuing, and
a
rapid rise of

of

abated,

we

may

rate of saving somewhat

a

than

the

6.8%

the

average

likely

assumption

that

further increase in personal in¬
tax

rates

year,

the

come

this

will pay

will

be

voted

Federal

for

Treasury

out several billions

more

cash in the second half of '52 than
it

takes

in.

issue

to

Unless

it

takes

savings bonds

steps
at¬

more

tractive than the present E bonds,
it will probably have to borrow
from commercial

erating
sure

banks, thus gen¬
inflationary pres¬

some

the year advances.

as

Generous

yields this

price

a

year

rise in the

crop

dampen

would

con¬

index.

Poor

probably result in

yields
price

a

rise greater than I have predicted.
To summarize, the most prob¬

able

of business

course

be mixed

to

rate

con¬

be in short

may

supply by year's end.

sumer

personal income after taxes.

What

goods that

sumer

would

they had at

as

The

cash

ample inventories of durable

en¬
as

indi¬

more

restraint will be the persistence of

that

not

was

corporations and

than it pays out to them. Another

as

factors

from

viduals several billions

no

people

Several

take

huge

increase

not

all.

at

$18

up

quarter of the year

same

In

income

now seems

trends for the

early

months of '52 with rising govern¬
ment

expenditures and

out¬

arms

put gradually lifting the total in¬
and

come

to

spending of the

econ¬

all-time highs in the
final - quarter
of the year. The
predicted highs, when compared
omy

new

with latest actual

to

increase of

an

value

of

in

5%

the

duction

of

of

and

of what the

figures, amount

near

9% in dollar

nation's

volume

Korea and lower than the

output,

industrial
in

4%

of

pro¬

the

cost

family buys.

peak rate of 10%.

higher

slightly

rise

because

farm

incomes.

Little

if

change in personal income tax

rates

Earl S. Hofstatter

of

employment,
hours
and
in¬

more

longer

creased
any

will

pay,

is in prospect

for this year.

and that all-out

Earl

Stetson

Hofstatter

at his home after

away

of

duration.

some

associated

was

Mr.

passed

an

illness

Hofstatter

with

Hemphill,

Noyes, Graham Parsons & Co.

of '52 personal incomes after taxes

is not its in¬

war

evitable

outcome.

expansion

They
have
of basic in¬

have also been reluctant to freeze
models at

early date.

an

for

reason

the

slow

in

arms

output is not commendable.
the

It is

continuing bottlenecks in

chine

tools

for

which

a

ma¬

series

of

bad decisions made in Washington
is largely responsible.
The

expected

huge increase

in

government spending will be par¬

tially

offset

by

a

are

predicted

18%

that

by the

by $10

up

spending

of

and

in

a

few

tained.

or

main¬

We

turn

affecting

of

consumer

far

the
for

as

ment

will

also

equip¬

present Cfcoss cur¬

has

Colo.

Mutual

Clarence

—

joined

the

H.

staff

Depositor

of

Cor¬

poration, First National Bank Bldg.

briefly to factors
industrial
production.

demand is concerned. On

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

FT.

land

LAUDERDALE,
C.

Hunter

is

Fla.—Leassociated

now

with A. M. Kidder & Co., 207 East
supply side it is accounted
Las Olas Boulevard.
by expectation of a somewhat

greater

than normal increase in
the working force, some
enlarge¬
ment of productive
capacity and

or

A

in

wreck

any

equipment

strike

transport

in

could

steel,

and

coal

obviously

industrial forecast for

With Francis I. du Pont
(Special

WEST

to The Financial Chronicle)

PALM

BEACH, Fla.—
Martin is now with

Sylvester J.
Francis

I.

du

Pont

&

Co.,

212

Datura Street.

quarter in which it occurred.

The

latter

the

which

for

DENVER,

now

quarter of '52 is already explained
so

ises

spending

expendi¬

The prediction of a 5% expansion
in
physical output by the last

residential construction,
al¬
ready reduced, will shrink some¬

Business

(Special to The Financial Chronicle)

Founders

rate

a

the

further.

With Founders Mutual

'52

But non-defense industrial

what

a

92%

ture of $216 billion.

processes.

aluminum,

of

Bower

basic industries such

and
defense

Assume

rate

saving rate of 8%.
This gives for the last quarter of

improvements

power

quarter

or a

income,

reduction in gross private domest i c investment.
Construction in
as

last

billion.

consumer

A fourth

rise

and

'Summary of address by Dean Cox be¬
fore the National Electric Sign Associa¬
tion, Chicago, 111., Jan. 21, 1952.

sole

was

Assume

lines, will be expanded

1950.

not the

was

sion may be great for many years

will average higher in 1952 than in
1951 but that for each of them the

over

latest

national

gross

Incomes

I expect arms

rise will be less than that of 1951

neutral

cer¬

analysis

item.

billion.

merce

the

The

wide

proves

not

higher

country into re¬
dustrial capacity and arms-making
ducing its rearmament goals.
facilities rather than early volume
I shall predict in terms of three
output of tanks and planes. They

o

for

for

increases

ment

stressed

prospect that the communists will

broad

is

that

1952 is minus $1

of

total

expect

deliveries to rise
slowly during the next few months
and
more
rapidly as the year
tion
of
unlimited war
in
1952
Our strategists have
seems
unwarranted.
Efforts
to progresses.
be

involves.

billion but

a

con¬

tinue through 1952 about as in re¬
cent months. As of today predic¬

would

it

times?

I conclude that

had been committed in quarter of 1951.
Korea.
My forecast became one the increase is $25 billion. State
local
of the bloodless casualties of the and
spending
for
public

our

A

investment
small

so

prospects can hardly repay
for the great amount of labor

•regard

erage.

delivery of arms
President Truman would at once and spending for services related
send our own forces back onto the to national security will be run¬
peninsula and into the fight. This ning slightly more than $2 bil¬
should have

that I

transportation

power,

industries. It has allowed time to

in

of the

at first decline slightly,' factor

rate of

me

be

positive rate of

a

ex¬

pansion of production capacity in

figures.

age of 230 in the last quarter of
the year. The consumer price in¬

will affect the

Let

ex¬

creased personal
saving already
Gross sumer outlays which represent
mentioned, and to voluntary credit
over
60% of total spending.
national
We
product, which at an¬
control by the commercial banks.
nual
rates
is estimated
at $328 have already mentioned that the
An important brake against a
billion for the third quarter of rise in output, prices and national
price rise for the early months of
1951, is expected to rise to $356 income so widely predicted for '51
1952 lies in the virtual
certainty
billion for the four£h quarter of faltered before the year was half
that the Federal Treasury will
1952. The Federal Reserve index over. Slowness of arms delivery

purpose

tarded

To suggest the order of mag¬
of the expected change I

year.

spending for
this

foreign

to

one

points.
likely.

spending for

forecasters

sonal

Net

declined by a few percentage

hugeness of the

had

pected it. Delay has permitted

because of the

so

projected rise

finest-tasting

For

relations national income and price curves
figure
is
plus
$1
billion.
My
flattened, and industrial produc¬
"guesstimate" for the last quarter
tion

outlook springs from our
abroad.

approach

most

the

it

if

I predict
$2 billion.

1951

which

with

well

may

quar¬

when

on

than

saving. This increased rate of

tain

boom

second

quarter of 1952.

some

ever,

economic opened faltered in the spring. The

internal

country's

the

squeeze

economy

the final quarter of the year, how¬

prices.
The

For 1952 the dominant factor in

this
i

consumer

1951,

in

zero

in

rates

of

ter

output, which will raise

arms

spending for invest¬
inventory, which reached
amazing peak of $16 billion at

annual

total national
income and spending to all-time high in latter months of year.
Foresees, during year, 9% increase in value of nation's oulpui,
5% increase in volume of industrial production, and 4% rise

lias been in the investment bank¬

ing business since 1930 and

Business

the

likely to follow mixed trends, marked by rising government
expenditures and

By the last

ment in

According to Dean Cox, for early months of 1952, business is

Schmick

come

put less

civilian

quarter of 1952, however, an over¬
all decline will have begun.

University of Chicago
Chairman of the Board, South East National Bank, Chicago

pany, 135 South La Salle Street,
has been elected Vice-Presi¬

will

and

those for construction.

Dean, School of Business,

€md

Thursday, February 7, 1952

.

.

hold at peak rates longer

By GARFIELD V. COX*

CHICAGO, 111. — Franklin B.
Schmick has become associated
with H. M. Byllesby and Com¬

however, will
than will

totals,

.

but
year

we

did

it

rise

part
in

once

not

get.

will

be

of

1952

physical
expected

If

it

less

prom¬

output
in 1951

comes

this

inflationary

Kunzer to Retire
Victor
from

Kunzer,

Jr.

will

retire

partnership in Rothschild &

Cd.j Chicago,

on

January 31st.

Volume 175

Number 5088

.

.

.

The Commercial and Financial Chronicle

(579)

AVCO

for 1951

\\

A

Family of

Famous Names"

HITCH CMS

HIGHLIGHTS

Year ended

Year ended

Nov.

Nov.

30,1951

Steel wall and base cabinets, kitchen

30,1950

sinks,

Consolidated

net

sales

.

'♦

' f'

•

HOME

net

income

$10,089,214

.

$1.10

share

*

CROSLEY

Shelvador refrigerators,, home and

$1.65

farm freezers, electric ranges,

sinks

Dividends per common

.60

share

dryers, irorters.

$12,635,633
:

Earned per common

;.

APPLIANCES

Automatic washers,

Consolidated

•*

BENDIX

$256,966,971

$286,598,113

disposers, ventilating

waste

fans.

and

radio sets and other home

$0.50

kitchen

cabinets, television and

equipment.

Crosley Broadcasting
Net

working capital

.

.

$87,933,721

Corporation

$70,980,186

WLW, "The

Operates

Net tangible assets

(netivorth)

$88,620,194

Nation's

Station,"Cincinnati, and WINS, New

$81,273,695

York; and television stations WLW-T,
Cincinnati; WLW-D, Dayton, and

Per

common

share.

WLW-C, Columbus.

$8.65

$9.07

.

•>

HORN
Per

$514.00

preferred share

$402.00

Hydraulic loader attachments,
shredders,

Number of stockholders
*

Based

on

8,819,385

**

Based

on

average

common

-

57,119

63,288

.

boxes.

wagon

LYCOMING

-

Aircraft and industrial engines,
pre¬
cision machine parts.

shares outstanding at close offiscal 1951.

number of common shares outstanding during fiscal 1950.

Mew Tpea
Spreaders,

-

pickers, balers, hay
rakes and loaders, power take-off
mowers, grain and baled-hay eleva¬

BOARD

OF

tors

DIRECTORS

corn

and other farm equipment.

SPENCER HEATER
Heating boilers for commercial and
VICTOR

EMANUEL, Chairman

C.

COBURN DARLING

WILLIAM I. MYERS

residential

GEORGE E. ALLEN

GEORGE A. ELLIS

IRVING B. BABCOCK

JOSEPH B. HALL

THOMAS A. O'HARA

NEAL DOW BECKER

CARLTON M. HIGBIE

R. S. PRUITT

use,

BENJAMIN H. NAMM

castings.

*

Avco

also

America

*'

is

*

helping keep

strong, with its

and facilities

plants

engaged in the

JOHN E. BIERWIRTH

ROBERT L. JOHNSON

JAMES D. SHOUSE

manufacture of electronic

JAMES BRUCE

LEROY A. LINCOLN

ALBERT C. WEDEMEYER

ment, aircraft components, tank

MARTIN W. CLEMENT

W. A. MOGENSEN

equip¬

engines, auxiliary power units,

military aircraft engines and
other materiel essential to the
defense program

AVCO




MANUFACTURING
420

LEXINGTON

BSOSSSQSS3

AVENUE,

NEW

YORK

of

our

nation.

CORPORATION
17,

NEW

YORK

it

19

20

The Commercial and Financial Chronicle

(580)

.

.

Thursday, February 7, 1952

.

m

wonder how
well

under

did

we
-

get along so

have

came

along

they

of

busi¬

Finally the 1929 crash

Securities Salesman's Corner

the

ahead

all

of

realization to everyone that

they

I

remember

a

working

medium

at

many

at the end

him.

ago,

years

salesman for
retail organiza¬

sized

Continued

;

Orders were selves

either written wrong, or given to
him at the wrong

of the

may

again be not so
firms that have

once

plentiful.

Those
solid

a

man

or

who

woman

can

look for¬

e n

from

4

page

important, and other

seem

All of this

so.

en-

d ered friction. I sometimes

Utility Stocks—
A Haven and an Oppoitunify
being explored and

many

are

Edison,

Detroit

Lighting

Houston

&

Pacific Gas & Electric,
Philadelphia Electric and South¬
Power,

Caifornia Edison. Little imag¬

ern

ination has been required to select
stocks as familiar as these.

NEW YORK 6, NEW YORK

choose

between

the

two

lent stocks of the

industry, but if

want to use this as a

we

it does suggest

yardstick,

that General Pub¬

lic Utilities is still not fully ap¬
preciated while it returns such a

liberal

yield.

feel

I

I

>

can

such

Public

as

Gulf

rado,

to

so

Service

of

Colo¬

in this

respect.

by Electric Bond and Share Company (Bond and Share), under
11(c) of the Public Utility Holding Company Act of 1935,
which Plan was approved by the Securities and Exchange Com¬
mission on November 7, 1951 and ordered enforced by ibe United
States District Court for the District of Maine, Southern Division, on

little

searching for stocks of com¬
panies of unquestioned soundness
but which yield a little more lib¬
erally. That is bringing attention

January 17, 1952.

to such issues

Notice

Plan,

on

is further given that, pursuant to the provisions of the
and after said Effective Date all rights of all holders of the

existing Preferred Stock ($7) , $6 Preferred Stock and Second Pre¬
Stock, Series A ($7), including the right to all accumulated
and unpaid dividends on such preferred stocks, the existing Common
Stock, the existing Option Warrants to purchase existing Common
Stock and the existing Preferred Stock Allotment Certificates, together
with any issued but unclaimed shares of stock appertaining thereto,
and the existing Notes held by Bond and Share of Foreign Power
will be revoked, abrogated and cancelled, except such holders' rights
to receive, subject to the terms of the Plan and within the time
limit therein provided, the new .securities, if any, of Foreign Power
allotted to them by the Plan and such other rights, if any, of such
holders as are specified in the Plan.
Certificates representing the following classes of stock accompanied
by a duly executed Letter of Transmittal should he surrendered to
Bankers Trust Company, Exchange Agent, Corporate Trust
Department, 46 Wall Street, New York 15, New York, for
exchange, on and after said Effective Date, for new securities of
Foreign Power on the following bases:.,.; %
L
1
;
ferred

:

Allocation

of

New Securities

States

Gas

Foreign Po wer

Others Than Bond and Share

Preferred

Stock

($7)

$6 Preferred Stock

Common Stock

....
.......

..........

Common

($7)

$80

of

-,

>

None ^

Electric

& Gas,
Central Hudson
Electric, Oklahoma Gas &
Electric, Ohio Edison and Utah
Power

a

&

few.

and

6%.

York

Light—to mention only

These yield between 5)4%

Incidentally,

State

;

/

.85
<-y-02

i.

Debentures

($100 principal amount or multiples thereof). No cer¬
tificates will be issued for fractions of a share of new Common Stock
less than $100 principal amount of the

4.80% Junior Debentures.
Arrangements have been made with; the Exchange Agent whereby a
bolder entitled to any such fraction may, without any service charge,
either sell the same or purchase an additional fraction sufficient to
entitle him to a full share and/or a whole debenture of $100 principal
amount, all as provided for in the Letter of Transmittal. Accruals of

interest from October 1, 1950 to the Effective Date with respect to
fractions of the 4.80% Junior Debentures will be added to the price

which such fractions

are

sold

or

additional fractions

are

Copies of the form of Letter of Transmittal liave been
mailed

to

the

purchased.
or

will be

all stockholders of record of Foreign Power, and additional

copies thereof,

as

well

as

copies

the Plan/may be obtained from

Exchange Agent.

Dated: New York, New York, January 29, 1952
AMERICAN & FOREIGN POWER COMPANY INC.




Gas

and

increases

and

modestly

a

higher dividend is at least

a

pos¬

sibility in these instances.

Comparisons will often show
values which

tirely

have

obvious.

interested

was

not

Just
to

been

up
en¬

recently

compare

I

some

this

year

been estimated from $1.15 to

per share, indicating a good
improvement over last year.

West Penn Electric appears be¬
the market and so long as

hind

the present type of economy con¬

tinues,

By W. B. Stafford, Vice-President

all of the Texas i

to

as

continuing

rate

of

The management has been veryi
a fine piece of'

alert and has done
work

in

stock

in financial

the

getting acceptance of its'

recent

circles;

past

Within

several

institu¬

tional
if

purchasers have asked me
they should not add SoutnwestPublic

ern

Service

list

proved

I

so

to

their

ap¬

that

the

know

yield around 5%% which is
return

than

most

utility stocks
of

the

of

a

the

affording.

are

investors

in high:

interested in'

are

this

on

partly

return of capital rather
This situation

a

tax income.

as

will continue for

few

a

in

which

think

I

South
sell

stock

a

the

on

erating

like

Central

Corporation
basis

same

an

In

op¬

this

connection I would point out that
Houston Lighting & Power, pay¬

ing

80c dividend, has recently
19 % while the Cen¬

an

tral and South

West, paying a 90c
has
been
available

dividend,

I think it would be

around 17.

excellent

move

an

to sell the Houston

West.

American Gas & Elec¬

esteem

enviable spot in
investors.
This

of

Last

fall I

spending
of

the

South

the Central & South

a

had

the

subsidiaries

West

pleasure of

week in the territory
Central

of

Corporation and

&

was

much impressed by the po¬

very

tentialities

of

that

area.

You

hear

a
great deal about what is
going on in Houston but a simi¬
larly dramatic growth is going on

in

lic

years.
same

Peo¬

oppor¬

Utilities

picture, - Also, there
lingering prejudices because

are

General

Public

successor

which

was

to

a

in ill

Utilities

is

the

holding company
repute. However,

a
reorganization program com¬
pletely cured the ills of the past;
present management is able, ag¬
gressive and honest. ■,

Comparing price-earnings ratios
and

excluding from

Public
of

the

General

Utilities

earnings results
the Philippine operations, we

find that; the

two stocks sell

on

a

reasonably comparable basis. The
capital structure of General Pub¬
lic Utilities system is fully as con¬
servative as that of American Gas
& Electric and,
to favor the

ities.

in fact, it

not too

appears

General Public Util¬

Territorial

seems

not

Corpus Christi, not too far
away,.' within the
service
area
served by Central & South West.
I think there is

bility

that

the

a

very

90c

fair possi¬

dividend

of

increased

was

This
The

not

long
ago and this fact has not yet been
fully reflected in the price.
Another

is

large company which
improving its status is North¬
Indiana

ern

Public

stock

is

in

Service

the

Co.

over-the-

counter market so is available for

work

by

dealers

curities.

The

in

unlisted

se¬

$1.40 dividend has

recently
been
giving
a
yield
around 5%% which is not as
high
of the

as some

been

is

companies
but

talking

there

we

about

have
think

I

a

very good chance that
the dividend will be increased this

Also, it

of

ary

the

was

cember

1.

Among

the

stocks

increasing

I

expect to

institutional

into

move

circles in

amounts

Central. Illinois

ing

between

which
from

is

Public

Service

Company

-

While we are speaking about
growth territories, and especially
about Texas, I would like to note
Southwestern Public Service

Company,
most

common

attractive

is

still

about

of the stocks

6)4%
with

characteristics.

ple

of

prejudices based

However,
was

of

in

equity.
stock

and

humble about any suc¬
making recommendations

debt

various

too much

point with pride as having made

cash

was

in¬

stock

common

reduced

was

refunded.

was

that

was

The

the

put on

net

financial

thoroughly

a

an

analysis of the
will vindicate ray

ratios

interest.

Last

I spent
company's terri¬
favorably impressed
summer

four days in this

tory and
with
ness

was

the

diversification

within the service

Another

company

West

and

before

of its stock

just

How¬

aays.

company

statement that the stock has
qual¬
ity which warrants institutional

dividend

us

the

the

was

of judgment we have made.

of

from

The amount of preferred

have plenty of
skeletons in the closet as to errors
all

exam¬

the reputation

outstanding

condition

in

an

jn bygone

additional

vested

institutional

by its former parent,
Corporation, a great

Middle West

be

very

on

before

cut loose

deal

6)4%

suffering

the company had

Middle

because

of

Service

and

Here is

stock

a

of companies in this general area.
Anyone in a spot like mine has to

cess

that

Public

higher than you expect
stock

a

sound basis and

Southwestern

is

Co.
This
stock, paying a $1.20
dividend, has recently been yield¬

structure

the

supply of
department

building of
pipeline
in
Chicago
put in operation De¬

new

which

of 1952.

that

the benefici¬

was

additional

an

natural gas for its gas
in connection with the

result

ever, if there is any one stock I
have recommended to which I can

seem

big company stocks.
improving situation.

an

Central & South West may be in¬
creased to $1 a share in the course

re¬

prospects

different and in other

spects there

is

around

stock to buy

pertaining
to
General
Utilities, still available to
yield over 6)4%, and American
Gas & Electric, now
yielding less
an

of the

&

should

as

stock.

company

Public

5%.

the stock has
recently been
yielding about 6y4% in contrast
with yields of nearer 5% on a lot
and

power.

West

figures

occupies

recognition to which it is entitled

heavy industry
year. This company is benefiting
is at a high rate of capacity, this
from installation, of new and effi¬
company will make further prog¬
cient generating equipment reduc¬
ress.
ing its dependence on purchased

sold

to study and familiarize
themselves with the General Pub¬

^

at

&

Central Hudson will benefit from
rate

only a half dozen
ple have, not had the

-3.2032

Accrued interest at the rate of 4.80% per annum from October 1,
1950 to the Effective Date will be paid on whole
4.80% Junior

or

Electric

both New

tunity

-A

None '-"yt

.V.....

New York State

earnings

as

for

4.0021
-

as

be

General Public Utilities stock has
been in the hands of the public

\V."

i

Stock

$90

many

only a have
buyers $1.20

however, has been out¬
standing over 40 years whereas

Shares New

Junior Debentures

Second Preferred Stock,

Series A

Number

Principal
Amount. 4.80%

of
Stock held by

and

now

stock,

*

For Each Share

are

Returns

Gas &

tric

Effective Date

Electric.

5%

over

Utilities,

are

the

as of the

&

from such stocks

than

~

cities

Panhandle,
of the best;

some

among

growth.

This

Section

29, 1952, has been duly

making

showings

stocks

Some

in

that February

still

dividend

that other in¬

say

might

given

in the Texas

serves

are

than

cinnati

hereby

it

as

sys¬

the Effective Date of the Plan of Reorganization (Plan)
of American & Foreign Power Company Inc. (Foreign Power), joined

is

as

com¬

has had the advantage of ex-;
cellent growth in the territory and;
I might note that the communities
pany

stock is regarded for tax purposes

Southern Company has recently
been, at a new high but well it

Notice

1942. The

the fact that the dividend

Vir¬
ginia Electric & Power and Cin¬

selected

time the stock!

in

income brackets

tegrated holding
companies, as
well, have not yet won full recog¬
which have been in the hands of nition although there is no ques¬
the public for a shorter period, tion that progress has been made
deservedly

($7), $6 Preferred .Stock, Second
Preferred Stock, Series A ($7), Common Stock, Option Warrants
to purchase Common Stock and Preferred Stock Allotment Cer¬
tificates of American & Foreign Power Company Inc.:

the

out

came

Some

Intensive buying has spread and

NOTICE OF EFFECTIVE DATE OF PLAN OF REORGANIZATION

To All Holders of Preferred Stock

first

years.
going into institutional hands for tems.
the first time. A great deal of
Among
the
large companies,'
This is by no means an invita¬
seems
buying has been concentrated in tion to sell American Gas & Elec¬ Niagara Mohawk Power
to
have
the past on old-line favorites like tric for that is one of the excel¬ not
yet
attained
the

Edison,

TWO RECTOR STREET

to

Service Cpmpany
consistently recom¬

from

mended

Texas

are

record, it is South¬

Public

which I have

to

Public

Commonwealth

AMERICAN & FOREIGN POWER COMPANY INC.

western

stock is getting wider recognition.?
In spite of this fact, it is available

salesmen

employees less

time, and in his g

week, although salesmen.

excellent

an

better

also complained.
They thought the fellows on the
The

tion, that there was constant bick¬
inside had a soft job. They would
ering between the salesmen and
the cashier's department. Neither give all sorts of work to the cage,
the salesmen nor the people who or to the statistical department
worked in the cage had any idea that they could very well have
of the problems which had to be handled themselves. They lorded
it over the clerical departments,
faced except in their own depart¬
ment.
The head order clerk was and no doubt tried to make them¬
always complaining.

all

sales

took the attitude
that they were doing a salesman a
favor if they wrote a letter for

a

as

years

that

ever

money.

built

recent

believe

have been glad

Stenographers

part of a team, and that their
work is important.
are

when

no

were

employees which are
bound to develop, unless a con¬
scientious effort is made to bring
a

foundation

real

no

in

to

get out of a job is
When hard times come

can

jobs

led

ward to nothing more than doing
if there their jobs completely.
the least work every day for the
A good organization will stand most
department.
Of
money they can squeeze out
and stresses of both of their
course, he didn't think very much the strains
employers, is going to
about
how .necessary
salesmen good and bad times, because peo¬ find out, sooner or
later, that such
were, and how much his having ple who know the importance of an approach is
paved with regrets.
a job depended upon them. • Some
teamwork will see to it that all This is not
popular thinking to¬
of the other people in the inside
employees share each other's in¬ day among many people—but it is
departments were also constantly
still sound philosophy for all of us
terest in the common welfare.
It
complaining about the extra work
who work—whether we are exec¬
the salesmen caused them to do. is not enough to get a pay check
utives, or clerical workers and
he would

at the top, know how
spirit of cooperation
segments of the or¬

ganization. The larger the firm
the more important it is to elim¬
inate the. cold and impersonal at¬
titudes

only the momentum
that kept it going.

were
firms step out opinion the salesmen were a most
left, lost what little
crowd is that the unnecessary nuisance. No doubt identity they had—and many lost

to engender a
between

out

who

some

the

of

man, or men,

was

went

been

relationship with
the top, or anywhere else, and the their customers, with their em¬
business was absorbed by a much ployees and the employees with
larger firm. Then the employees each other, will stand up.
Any

Teamwork!
reason

was

times

There

By JOHN BUTTON

The

It

ness.

of

firm

that

and

employees

some

circumstances.

such

Company.

was

about

busi¬

divested

put

the

in

by

sound

distribution

Kentucky Utilities

This

and

of

area.

stock

affords

6%.

a

$1

return

of

pays
a

Here

again,

I
people are influenced un¬
duly by prejudices as to the com¬
pany's former financial condition
think

Volume 175

Number 5088

The Commercial and Financial Chronicle

without

giving due weight to the
big improvement that has taken

place in recent

Along this

line I

call

at¬

tention to Interstate Power Com¬

whose shares

pany

listed

were

on

the New York Stock Exchange for
the first time in late 1951.
I con¬
cede

that

rather

this

subject to

and

good management.

wide

fluctuations,

indu'trTtoday In Tort-®

In this latter connection I would

years.

same

not

had

company

that

point out that I have visited util¬

for

ity

companies

State

in

of the Union

impressed

with

(581)

utility stocks

can

institutional portfolios

or

nearly

every

be sold to the clients of investment

much

houses

the

high

of

caliber

without

causing

any

Bailey-Davidson. Adds

(Special 10 THE FlNANcm CHR0NlCLE)

-

PASADENA,

can

and

am

Joins J" M.Barbour

feel

be bought

Brooks

W.

has

Calif.

become

:o t«e

Percival

—

affiliated

tersen

has

Bailey

&

Bank Building.

zens

joined

Davidson,

Street.

a

unsatisfactory standing for
but the company was

many years

recapitalized under the auspices of
the SEC and is
dition.

in sound

now

con¬

With the

lingering preju¬
dices, however, the stock is re¬
turning over 63A7o on the 60c div¬

*

-1

idend.
A

particularly interesting

ture

of

this

cate that

fea¬

that

but

year

the

more

figures

indi¬

it should be able to

in¬

per-share earnings in spite

crease

of

is

is planning to sell

company

stock

situation

this

the

additional

stock

outstand¬

ing due to higher rates,
erating

facilities

business.

gen¬

new

and

growth

1951

a

...

year

of

of balanced progress

Furthermore, the sale of

stock if carried through,
planned, should help bring the
common stock
equity at the end

common
as

of

this

close

year

to

against 27%

last

be

toward

move

a

putting

of

this

low
is

much

in

is
it

the

is

not

does

have

the

com¬

to

so

wide

sensitive

There has been

improvement

an

picture as to utility com¬
panies in the Pacific Northwest.
the

of

negotiation of

by private

riod have further diversified the
in this

recent

past

By the end of 1951 construction restrictions

resulting from World War II had been

was

been

the Bonneville Power Administra¬

tion,

supplanting

removes

in

of

one

uncertainty

the

which

elements

has

ered

Mountain

stock is

still

States

available

Power
the

on

yield basis of around 7%, I
think it is still worthy of atten¬
tion for accounts where

high in¬

a

protected

by satisfactory
desired. I visited the

quality, is
Oregon properties of this

as

an

year

for

was

very

expansion

program,

continued prosperity
ments,

supplied.

example of what the American team of

labor, capital and management

is in

can

do. A further,

essen¬

designed to meet the needs of

and the addition of defense require¬

customers

added

will

It resulted in

require

an

enues

first

time

has increased

revenue

the industrial

revenue.

postwar expansion program (1946-50)

an

program

is

now

during the postwar

pe¬

cosl

under¬

outlay of $20,400,000 in 1951, and

additional $38,000,000 for 1952 and 1953.
shows

an

increase in operating

from $22,961,000 in 1945 to

rev¬

approximately $49,-

000,000 in 1951. The sale of electrical

energy

increased

from 874,774,000 kilowatt hours in 1945 to 1,750,000,000
kilowatt hours
gas

in

1951..The thousands of cubic feet of

sold increased from 9,820,000 in 1945

in 1951.

The

.>v-

financing of this

produce the

to

24,210,000

.

necessary

program was not

funds, but

was

only planned to

also directed toward
accom¬

panying chart illustrates the results of these efforts.

much interested in the

the

to

improving the balance in capital structure. The

:

process.

New industrial

company

last

economy were

created

major achievement in normal times. This record

a

is offered

tial

gas

accomplishments would have been consid¬

re¬

cent

come,

Each of these

five-year

The annual report

electricity and

by expanding post-war

of

prevailed

these pictures.
While

integrated.

Unusual demands for

year-to-year
contracts previously in force. This

products manufactured

Farm and residential

$75,227,000. A second five-year

overcome.

acquired in 1915 and 1918 had

area.

relationship of balance

way.

New territories

companies with

power

in

The

five-year contract

a

Light Company, the problems of the postwar

have been successfully met.

years

constructive

very

the

of

moves

Throughout the 24 Ohio counties served by The Dayton
Power and

the

One

of continued growth

assurance

business

swings in industrial activity.
in

Power and Light Company Annual Report reveals

strength and stability, gives

in

processing of

agricultural products
pany

The Dayton

abnormally

that

with

the

Bear

industrial

company

and

tied

•••••••••••••••••••••••••••••••••••••••••••••••a

command in¬

attention.

mind that the

••••••

as

This will

year.

stock in position to

stitutional

30%

and
Wf

A

growth of the communities which
this company serves.

a

WILL

COPY

BE

Of

PLEASED

OUR

J 951

TO

MAIL

ANNUAL

YOU

REPORT.

balanced capital structure

A

nearby company, also favor¬
ably affected by the new power
contracts,
is
Pacific
Power
&
Light. This company has the fur¬
ther

advantage

of increasing its
generating facilties through
a big new hydro¬
electric project known as the Yale

power

construction of

Dam.

After this dam goes
into
operation it will have the benefit

of certificates for the rapid amor¬
tization of cost for tax purposes

this

and
to

will

probably

dividends at

which
turn

give

rise

little later time

a

will be

regarded as a re¬
capital for income tax

of

purposes.

Smaller Companies

u

Better than average returns are
available from some of the smaller

companies, such
tric

&

Gas,

Power,

Central

as

Southern

Iowa

DC

Elec¬

Colorado

Southern

Utilities

Western

and

Light & Telephone
Many of these smaller com¬
panies are well worthy of explor¬
Co.

ation

by

investors

they

as

have

merit and promise for the future.
I

would

tunities

utility

point

often

stocks

the market,

out

exist

that
to

which

oppor¬

purchase

are

behind

hold them for six to

twelve months' period, and then
exchange into other utility stocks
which may be undervalued at that
time

after

profit
This

on

is

getting
the

where

familiarity

a

first
close

with

satisfactory

pay

the

different

helps

off.

However, the basic appeal for
utility stocks is and will continue
to be

relatively good income,

tection

from

a

1943

1944

1945

1946

1947

1948

1949

.*1950

1951

analysis and

stocks and with the markets
to

1942

commitments.

pro¬

type of -business




The

Dayton Power and Light Company

cwohio.)

FRESNO, Calif.—Robert E. Pe-

loss with John M. Barbour & Co., Citi-

sleep at night,

21

wrON;o

HI O

the
2133

staff

of

Fresno

22

The Commercial and Financial Chronicle

(582)

Leap Year No Stimulant
To Marriages
NEW

in

crease

that

leap

marriages

■

which

year—of

exploded

as

Since

ri

To

the

War pe¬

only
twice, in 1896
and

in

1920,

has

the

mar¬

and

been

carried

statisticians

tan

Life

of

Louis

Insurance

Despite

trict

this

been
depleted
by
in marriages following

(Special

to The Financial

L.

Gordon has

become

with Hincks Bros. &

Main

—

better tone which has been evident in these obligations.

Myron

Street, members of the Mid¬

west Stock

Exchange.

which

Mr. Gordon

formerly with Earl E. Bond
Inc., and prior thereto conducted
his own investment business in
was

the

Iowa

the firm

was

Co.

A.

and

G.

which

trend

for-

Heim

has

Grenfeld

gaging
from

N.

Y.

—

Associates

and

in the securities

offices

at

247

en¬

Street.

past

few

accumulation

by

pension

funds

and

of

some

the

private

trust

appears to
be a minor change in policy since
according to reports, have been inclined to buy
mainly the issues which would give them the highest income.

these

concerns,

An

editorial

in the
February
Guaranty Survey,"
the monthly publication of the
Guaranty Trust Company of New
York, analyzes the pros and cons

issue of

of

the

The

partially exempts, that is the three largest maturities,
to be (in demand, with both the
large and small deposit

STATE

couple of fairly good-sized trades

It is reported

that

effected recently in the

were

1958/63s and the 1960/65s.
The

and
able

MUNICIPAL

influence,
set

l%s due in

SECURITIES

despite

maturity
1954

minor

adjustments,

issues, such

through

1956.

This

the

upon

a

not unfavor¬

the

l%s, the

2%

IV2S

bonds

and

the

buying, it is indicated, is

coming largely from Southwestern banks.

Although Federal

the first time since April

anything
central

8, 1942, it is not expected there will be

lasting about the shortage

very

banks,

especially

as

the

March

of these

income

tax

issues

in

period

the

rolls

In

international

the

"Survey" states:

is

With Paul Rudolph

MARTINSVILLE, N. J.—Ralph
Lyng

&

Co.

has formed

with

offices

R.
on

Rock Road to engage
curities business.

V.

(Special to The Financial Chronicle)

SAN

Lyng

Chimney

in the

se¬

231 So. La Salle St.

With

CHICAGO 4

BOSTON 9

ST 2-9490

HA 6-6463

(Special

45 Milk St.




to

Pugh is now with Paul C.
Rudolph & Company, 127 Mont¬
gomery Street.

DELRAY

C.

Harris, Upham
The

BEACH, Fla.—Nelson

Freeland

Harris,
Atlantic

Two With David Means

Fin^ial Chronicle)

is

Upham

connected

&

Avenue.

Co.,

512

(Special

to

The

Financial

Chronicle)

BANGOR, Maine—Hope J. Mac-

exchangeable for gold,
domestically and internationally,
at a fixed rate, subject perhaps to
a small handling charge.
At pres¬
United

States

is

what

on

banks

and

governments

fixed

rate, although the law
does not clearly require it to do
a

Persons

in

the

United

States

these

work

obligations

implied

observed,

are

the

as

im¬

on

standard

gold

intended."

Answering the question, "Is the
Gold

Standard obsolete?" the

ar¬

ticle remarks:

"There

is

a

widespread

ten¬

dency to regard currency redeem-

ability

as
of

relic

an

the

placed restrictions

on

present
tain

regime

monetary

that

erally

main¬

anything which is gen¬

acceptable

can

serve

as

Most for¬
not

gold for monetary use.
eign
countries
have

of

only

redemption

their

currencies in gold but
exchange of those curren¬

and

money,

stability is the gen¬
price level and that gold con¬

currency

eral

than

vertibility did not meet that test,
wide price swings occurred
under
the
gold standard.
They
point out that the automatic ad¬
justment of gold
holdings and

technical

price levels under the gold stand¬

implies also that
changes in gold reserves will be

ard took place through alternate
expansions
ond
contractions
of

allowed to exert their

natural ef¬

credit

and

costly

also

on

cies for others.

international gold

standard implies
the

much

fulfillment of

fects

more

these

It

credit,

on

demand,

since

which

prices, for it is through these ef¬

tion

them

even

bility

of

to

international

an

an

in any

cause

and

gold standard works.

increase in gold re¬
country should tend
of

expansion

an

gold

credit

in circulation, an in¬
demand, and a rise "in

money

crease

in

dise

The country's merchan¬
imports should tend to in¬

crease

and its exports to

decrease,

resulting in an import surplus to
be paid for in gold. In a country
whose
gold reserves
have
de¬
creased,
should

the

MacDonald

relatively
rates and

G.

mate

of

opposite

effects

In this way the dis¬

occur.

tribution

gold
even,

should
and

be kept
exchange

price levels in approxi¬

balance

over

the

long term.

harmful

were

in their effects

fects that the

Caskill

Means, 6 State Street.

restrictions

that paper money
meets this requirement so long as
it is properly 'managed.'
"They contend that the real test

cannot exchange their money for
gold and are not allowed to own

have become affiliated with David

D.

excessive

or

era.

East

Stuart

gold-standard
mechanism
as direct controls

by such devices

outmoded device, a
'horse-and-buggy'
may be described
as
a
de facto
'Managed' currency is de¬
international gold-bullion
fended
on
stand¬
grounds of principle,
ard.
The
Treasury
buys
gold as well as of present expediency
and necessity.
Defenders of the
from, and sells gold to, foreignthe

ent

with

and

avoid

cannot

FRANCISCO, Calif.—John prices.

W.

ST., NEW YORK 5

WHitehall 3-1200

Standard,

freely

serves

V.

Gold

a country is on a
standard if its currency

standard,

Lyng Opens

and

policy
or
practices
on
in gold reserves and to
interfering with the auto¬

changes

covering the implications of Unless

an

Under

around.

R. V.

credit

ports and exports of merchandise.

conditions.

cleaned out of Treasury bills last week,

was

but also to base its monetary

money.

"A workable
as

cur¬

matic

of

strength in the near-term issues is having

the

and

under

"Hence, a country on the inter¬
gold standard is not only
obligated to meet the technical re¬
quirement of gold convertibility,
national

monetary and
trade relationships, and
reviews
the virtues and faults, arguments
and counter-arguments involving
gold as a measure of value for

so.

banks interested in acquiring these securities.
a

Gold Standard

central

continue

U. S. TREASURY

"The

international

rent

at

activity is being improved,
into the shorter-end of the group a bit more

pronounced at this time.

15 BROAD

but far too few, Byrds

a sound
currency, points out implications of a
workable international gold standard.

of the ways in which volume and

with the movement

INCORPORATED

many,

in revival of

Shifting to and from certain issues of the restricted bonds is
one

& Co.

not too

"Technically,

This

accounts.

*

Aubrey G. Lanston

us

February issue of "The Guaranty Survey," published by the
Guaranty Trust Company of New York, noting recent interest

full gold

buying from the smaller out-of-town commercial banks. The near
eligible restricted issues, it is indicated, have been under modest

securities business from offices at

W.

the

higher income eligibles, and those that will become
eligible in the near future, have been attracting a bit more atten¬
tion, with the former obligations again getting the bulk of the

Opens

Indiana Avenue, N.

for

The

WASHINGTON, D. C.—George
Borger, Jr. is engaging in the

643

constructive side

Restricteds Have Following
J.

business

Lark

G. I. Borger
I.

are

the

on

However, it is believed as long as sellers are few and far
between, as they appear to be for the moment, quotations of these
securities are quite likely to remain on the favorable side.

Co.

Arthur

been

weeks.

A. J. Grenfeld & Assoc.
ALBANY,

why there* is not

place in
It is being pointed out
that if there should be sizable offerings of the longer-term Treas¬
uries, there would not be enough buyers around to sustain the

rmerly with Dempsey & Co., T. L.
Crabbe

reasons

prices of the higher income obligations.

Theatre Building under
of Geo. F. Martinek

Mr. Martinek

This latter is another of the

too much confidence in the betterment which has taken

in

name

Company.

well

the market.

RAPIDS, la.—George
F. Martinek is engaging in the se¬
offices

payroll. This could be done to give
efficiency."

are

now.

companies, fire and casualty companies,
as charitable
organizations have also been doing some
buying of these obligations. The combination of all these
buyers of the longer-term has been sufficient, nevertheless, to
have a favorable influence upon quotations of these securities,
mainly because there have been no important or large sellers in

CEDAR

from

We must balance the budget
from the 2,500,000 people on

Pros and Gons of (he Gold Standard

Pension

modest

Geo. F. Martinek Co.

business

time

some

Government, the freedom of the

Small life insurance

as

Hew Britain.

curities

they have'been following for

must protect the
dollar, the integrity

We

in Congress.

funds, according to advices, are not yet doing any important
stepping-up in prices in order to get the highest income Govern¬
ment obligations.
This would not be any change in the policy

associated

Co., Inc., 872

help our Allies
economically

instead of less

There

that come into the market every now and then. This means
pension funds and private trust accounts have been and still
are the leading acquirers of the higher income Government bonds.
It is reported, however, that the private trust accounts have been
more vigorous in the acquisition of the longest-term obligations
than#the pension funds. This may be one of the reasons for the

Chronicle)

Conn.

the Federal
more

that

Gordon With Hincks Bros.
BRIDGEPORT,

of the American

ones

the close of World War II.

are

we

strong.

y

American economy.
and cut off 400,000

categories recently. This is one of the reasons why not a few of
the professionals have their fingers crossed when it comes to
picking the near-term trend in the longs.
Buyers of the higher
income obligations are the same as heretofore save for the periodic

has

the spurt

cannot

American

bond market, there is still plenty of skepticism around as to the
ability of these obligations to continue the uptrend. Volume and
activity in the higher income Treasury obligations is still light
even though there has been a modest expansion in both of these

are
unfavorable, Dr.
continues,
because
the
of available
unmarried

supply

harry f. byrd

is

way.

"We

Market for Long Bonds Vulnerable

traditional

I think the Rus¬

itself.

purpose

unless

Despite the favorable tone and trend in the long Government

year

persons

unless more sizable buyers
quarters that any time

some

the sellers could well outnumber the buyers.

I.

privilege to propose, prospects of
an increase in marriage
frequency
Dublin

It is felt in

destructive to

as

to weaken us
They know that if
our
free enterprise system can
be wrecked, our productive ca¬
pacity will be so reduced as to
put us at their mercy.

point where the law of diminishing returns
has not already done so in some

the horizon.

war

this

into play, if it

how long can this go on,

means

appear on
now

Company.

woman's

as

be

can

system over a period of time

sian

higher income obligations have put on a one-ring show
three-ring tent, which in the parlance of the financial dis¬

a

war

our

The
in

chief
Metropoli¬

the

of

year

reports

Dr.

the

to

come

Dublin,
of

strengthen, not weaken the productive
capacity of America. The threat

instances.

follow¬

ing,

I. Dublin

"We must

still

is about to

eeding
in the

year

recent address-said:

certain of its footing as it was in the immediate past.

is

immediately
p r e c

market, although still under the influence
riskless obligations, does not appear to

the

it could be (in spite of the fact the liquidity prefer¬
very strong) that this desire for riskless assets has

However,

riage rate in a
leap year been
higher than
the

.■

be sure,

ence

in

for

demand

Tew!

Asserting that the productive capacity of our
system is a greater deterrent to aggression than
the United Nations, Senator Harry F. Byrd in a

the short market still has a very substantial demand
in it, but some of the vigor may be leaving the old girl.
This
does indicate any very substantial setback because there is not
likely to be any more of those year-end performances, which did
neither the money markets nor the money managers any good.

d

o

the

be quite as

myth.
Civil

Government

The
of

a

Not Too Many, but Too

Governments

on

By JOHN T. CHIPPENDALE, JR.

in¬

1952, of course, is one—has been

Dr. Louis

Reporter

N. Y.—The com¬

YORK,

belief

mon

Our

Thursday, February 7, 1952

..

and

employment.

stability,

question

and

produc¬

on

Some of
desira¬

the

long-term

currency

that full em¬
ployment is a more important ob¬
jective and that this can be best
promoted by a gradually rising
price

believing

level,

rather

than

a

stable

one.

"The

foregoing brief and
outline of the

simplified

over¬

main

proposals, arguments, and counter¬
arguments is perhaps sufficient to
indicate the extraordinary diffi¬
culty and complexity of the prob¬
lem.
Some
arguments
on
both
sides are tenable on grounds of
principle.
As for their practical

validity,

this

only by trial.

can

be

determined
can yield

Even trial

Volume

Number 5088

175

The Commercial and Financial Chronicle

...

(583)

partial

only

sible to try botn

is seldom pos¬

(or all) alterna¬

tives.

,

"Experience
throw
It

in

because

answers,

economic affairs it

is

true

fell far

fect.

light

some

that

short

the

of

the problem.

on

gold

the

standard

goal of per¬

stability,

currency

the

in

of price stability.

It is true
also that its automatic regulatory
sense

action

harsh, sometimes in¬
tolerably so, necessitating tempo¬
rary suspensions of the rules.
On
the

hand, it is equally true

that the gold standard provided a
foundation
or
norm
of
value
which

held

within

price

fluctuations

over

long periodsr

bounds

It furnished

tween

connecting link be¬

a

national

national
in

Van
and

Alstyne

associates

350,000
of

of

Corporation
5 offered

Servomechanisms,

per

stock

common

Inc.

at

Of

the

shares

are

pany, and

sold

for

total

offering,

250,000

being sold by the
100,000 shares
the

shareholders.

account

The

being

are

of

apply its portion of the net

pro¬

poses

as

augment working capital

the

corporate

board

of

pur¬

degree of conformity with
It imposed severe pen¬

gaged

in

the

Inc.

is

engineering,

en¬

devel¬

equipment

be

prospectus,

control

feature

as

device

of

described,
an

auto¬

which

has

The

company's

unfilled

orders

Robert Lane Has Joined

at the end of

November, 1951, both
prime contracts and subcontracts,
were
approximately
$8,000,000,
with

additional

negotiated.

contracts

Neergaard, Miller Co.
Neergaard,
Wall

being

concentrating its

Exchange,
pro¬

Lane

is

firm

in

ing on its own operation and auto¬
matically correcting for any errors

ucts have many uses in industrial

Mr. Lane

application.

field

its

based

performance.
on

feeding

a

This

action,
sample of the

output back to the input,

compar¬

signal, and correcting for
ferences,

results

self-balancing
appropiate
be

in

to

a

LOS

to

Newman
with

by
can

great variety

of

722

The

Financial

has

Francis

South

become
I.

du

LOS

associated

Pont

&

South

was

formerly with Morgan & Co. and

the

&

governmental

on

to

Co.

The

Financial

"The

contention

of

has

been

added

New

Street,

York

and

Exchanges.

extrava¬

provide

can

stitute

that*

for

proper

'management'

money

adequate

an

sub¬

the

gold
standard,
value of money ap¬

holding the
proximately stable for unlimited
periods,
may
or
may
not
be
theoretically
defensible.
As
a
practical matter, it has
done
few

been

never

except for short periods.
countries

of

Western

Illll

A

mMm.

Europe

have recently followed restrictive
monetary
policies
without
free

.convertibility.

currency

In

gen¬

eral, however, the verdict of his¬
tory

so far is against the advocates
'managed' currency."

of

Halsey, Stuart Offers

*4,000,000

Central Hi. P. S. Bonds
Halsey,
Feb.

1

first

Stuart

&

Co.,

Inc.

Day "to
Serve "the Nation

on

Added Every

publicly offered $5,000,000
bonds, series D,

mortgage

3%%,

due

Feb.

1,

1982,

of the
Central Illinois Public Service Co.
at 102%

and accrued interest.

bankers

the

were

der for the bonds on Jan.

ing

The

bid¬

successful

29,

nam¬

price of 101.35%.

a

The

proceeds from

the

of

sale

bonds, and from the sale of
50,000 shares of 5%% cumulative

phone

preferred stock, are to be used by
the company

tensive
The

for

a

part of its

construction

is

company

*•

r.r

the

service.

ex¬

program.

engaged

prin¬

cipally in furnishing electric

en¬

ergy to communities in 61 counties
and

to

gas

communities

in

12

counties

in Central and Southern

Illinois.

For the 12 months ended

Oct. 31, 1951 about 92% of the
op¬
erating revenue was derived from

the

sale

8%

from

of

electricity

about

and

the sale of gas.
the larger cities served are

Among

Quincy,

Mattoon, Canton and West

Frank¬

fort.

Merl

McHenry Partner
%

In J.
SAN

Barth

Street,
Henry

WyWM

has
as

admitted

general

a

fective Feb.
with
years

and

1.

Bank

Merl

partner,

America

ef¬

for

22

Vice-President

was

in

graduate of the Harvard

School of Business Administration
and of Stanford Law School.
J. Barth & Co.

the

are

members of

New

York
Stock
Exchange
Exchanges.
McHenry's
admission
to

and other

Mr.

the firm

was

III®r

m

McHenry had been

of

of
trust
activities
for
Northern California. He is an at¬
a

filltt*

mmm

Mc¬

charge

torney,

A

mm

FRANCISCO, Calif. — J.
&
Co., 404 Montgomery

Where

Did the Money
From?

Why

Come

The money came

almost'en¬

tirely from people willing to
invest their savings in the

telephone business.

Did They

Invest

Their Money

They put
service
cause

the

public only be¬

public would
fair return on it.

they felt the

allow them a

With

a

LOS

to

The

ment in

Neary, Purcell
Financial

Chronicle)

ANGELES, Calif.— Ches¬

ter J. Janicki and Loren L. Noble
have

become

Neary,
Seventh

Purcell

Street,

connected

with

&

Co., 210 West
members of the

Los Angeles Stock Exchange. Mr.
Noble
was
previously with
Marache Sims & Co.




BELL

Continuing

TELEPHONE

Met?

profit the telephone

hold and attract
for mves -

people's savings

in the Chronicle of Jan. 10.

(Special

fair

company can

previously reported

Two With

Can

Demands Be

their money to

of the

How

?

SYSTEM

?

Chronicle)

to

th(i

Lester, Ryons & Co., 62J

gance and loose fiscal practices.

methods

tho

department.

formerly with Dela-t-

the others.

alties

Robert:

with

ANGELES, Calif.—Paul XL

Hope

Stock

Reeves

that

associated

research

was

Coughlin

Daniel

control problems.

14

City,

Delafield.

staff of

Co.,

Spring Street.. He

Co.,

With Lester, Ryons

Jack

—

its

(Special

Chronicle)

ANGELES, Calif.

continuous

instrumentation,

applied

(Special

which,

a

action

•

dif¬

any

&

With Francis I. du Pont

.

ing it there with the "command"

&

York

announce

now

duction for military use, its prod¬

in

New

members of the New York Stock

Although the company

is at present

Miller

Street,

continually check¬

■

from time to time determine.

Servomechanisms,

the

directors
<

may

matic

might

selling

will

and for such other

the

says

com¬

company

ceeds to

mechanism

$5

share.

and

which fall under the broad scope
of
servomechanisms.
A
servo-

Feb.

and

currencies

economies, holding each

some

Noel
on

shares

was

other

and production of auto¬
matic. electro-mechanical control
instrumentation

Common Stock Offered

however,

does,

opment

Servomechanisms, Inc.

£»

the business.

members
Los

of

Angeles

,

24".

The Commercial and Financial Chronicle

(584)

Complete Financing of Bonds
Of Triborough Bridge Authority

.

.

Thursday, February 7, 1952

.

are

not

the

increased

likely to decline.
volume of

While

business

activity will lead to a rise in gross
profits of corporations, net profits
in the aggregate,

after taxes will,
be

smaller than during 1950
Moreover, there is a

and:

1951.

sibility

New York Central
December

ment,

to

as was,

earnings

somewhat less¬

a

the

degree, the company's perform¬
ance for the full yeai
1951. Tak¬
ing the bare figures of gross reve¬
er

in

revenues

dividends although toward the end

forecast a drop in nonincome. With rates un¬
and with costs holding

dent that dividend payments were

income at

the

creases

some

effect

full

year's earnings,
an
unprecedented
proportion for that month.

Although

being sought

this

year

kshare.

a

is

It

revenues

will

time

be

to

due

to

million in
not

cut

a

mail pay.

significant.

cluded

expenditures.

in¬

outlays
either

be

for

uation.

the

improved

ness

somewhat,

from

revenues

that

source

up

come

from to offset

this

revenue

Smith, Barney & Co. headed

public 400,000 shares of

that presumably
1951

was

Net
the

defense

not

off

so

drastically

down

were

somewhat

but

proceeds

additional

company's
which

were

to

they

plants

In
the
aggregate, maintenance
outlays for the month were cut
by $11,161,733.
This offset some

chemicals

credit of
a

earlier.
the

compounds,

that

allowed

to make such

the

a

showing

year

year

as

favorable year-toDecember. For

a

whole,

and

even

ings

on

the

the

from

common

$2.84

in

dipped
1950.

to

With

December results, the overall

1951

earnings

were

considerably

include

and

fine

and

numerous

during

the

year

845,034

1951

and

amounted to $272,-

net

income

to

$23,-

mii

New York 4, N. Y.

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




Joins
(Special

Mitchum, Tuliy

to

The

Financial

Chronicle)

LOS
C.

ANGELES, Calif.
Mary
Deegan is now associated with
—

Mftchum, Tully & Co., 650

South

Spring Street. Miss Deegan was
previously with First California
Company.

,

page

9

to

The

Financial

is

with

Oscar

Ingraham Building.

r

E.

M.

'

i'

—'

•«

on

output

durable

of

Briefly

carefully.

(1)

Van

Dooly,

and

strength

does

preparation for

What effect will the emer¬

values,

have on security
both stocks and bonds: (a)

gency

a

as

decline in
well

What procedure should

(2)

one

represent
the economic

not

war,

of

the

program

are

consequences

defense

briefly

emergency

quite

clear

at

assumption that the business pat¬
tern will be about the

fore

same

as

be¬

World War

II, which after a
prolonged period of inflation was
followed by a serious depression,
or

will it

assume

Should the

new

characteris¬

investment pol¬

(2)

based, as
primarily

one

it

which

as
no

continue

to

hold

a

obsolete

longer fit in

investments
a

trust port¬

of the
have

These

questions
are
difficult
complicated and not easy to
answer.
A careful analysis of the
economic
impact of the emer¬
gency should enable one, however,
and

Impact and

the

Duration

of

the Emergency
Since the aim of the free world

is to contain Soviet aggression by

war.

Since

been

invested

1946

huge

in

new

plant and equipment

so that today
only is our productive capac¬
ity greater, but also productivity

not

has
at

increased.

been

the

gram,

peak

of

the

available for civilian

with

Hence,

even

defense

pro¬

the supply of commodities
certain

consumption,
exceptions,

notable

particularly those utilizing scarce
metals, ought to be greater than
perhaps

ever

large,
main

for

defense

business
at

activity

continue

will

tionary

what

to

as

market

in

all

Competition

from abroad may be greater than

time in the last two decades.
these circumstances, com¬

any

Under

modity prices will either level off
witness

or

moderate

a

decrease.

(3) A decline in gross corporate
profits will have a much more
effect

on

excess

if

profits

net

earnings
taxes

are

eliminated

by the Congress. Net
earnings' of corporations will be
smaller than they have been dur¬

ing 1950 and 1951.

(4) A decline in business activ¬

ity,
by

particularly
moderate

a

if accompanied
decline in com¬

modity prices, will lead to a de¬
cline in demand for capital and
credit.

Moreover, once the dan¬
inflation have been elimi¬
the forces of deflation,

gers of

nated

and

begin to operate in the
it

is

economy,

fairly certain that the poli¬

cies of the Reserve authorities will

undergo
will
ness

change and that

a

endeavor

stimulate

to

they
busi¬

through low money rates and

conditions.

market

money

easy

Developments in the money mar¬
ket may be

again similar to those
1949.

prevailed during

(5) Under the above-described
conditions, bond prices should in¬
and

crease

equity

prices

should

decline.

The above is merely an attempt

re¬

high level. The infla¬
forces will continue to
a

clue

a

sellers'

The

which

before.

While the military strength is
being increased and the support¬
ing capital expenditures by cor¬

porations

folio?

The

to

was

large percentage of the corpus in
equities?
Are bonds to be re¬
garded

national product was de¬
the military effort, the
rearmament program as envisaged
at present will absorb only about
20% of the gross national product
at the peak.
Moreover, the pro¬
ductive capacity of the country is
today much greater than at the
gross

sums

of

expect.

will disappear.

lines

even

end

consequences

military expenditures

least

may

serious

voted

;

follows:

as

and

our

one

proceed on the

:

,

Defense

capital outlays by cor¬
may
be
summarized

as

porations

offer

obviously will be entirely dif¬
from the consequences of
immediate future, i.e., during the
World War II. Whereas during the
present year and possibly 1953,
second World War about 50% of
and (b) in the long range future?
follow? Should

Decreased

economic

ferent

in the

of

ity. The pattern of business dur¬
ing 1949 and developments in the
soft
goods industry during 1951

■

v

to

visualize

that

may

the

business

develop

as

a

pattern

result of

operate in the economy, although

the/rearmament

barring unforeseen events, they
ought not to be as great as during

evident that certain modifications

the

Chronicle)

MIAMI, Fla. —Harold
Husan

ever

of under¬

group

%

to reach certain conclusions.

Oscar Dooly Adds
(Special

ex¬

(1) A decline in business activ¬

";

prior to
Upon completion of the present
on
preserving
financing outstanding funded debt 1946,
principal for the remainderman in
and
capital stock will comprise
terms of dollars; or should great¬
$30,000,000 of 2.65% debentures
er
emphasis be placed on main¬
due 1971;
$66,000,000 of 3%% in¬
taining the purchasing power of
come debentures due
"2,002; 150,- the
corpus
and of the income?
000 shares of
$3.85 dividend pre¬ Should
one revert to the old pol¬
ference stock; and
5,268,189 shares
icy of buying bonds and reduce
of common stock.
the
percentage
of
equities,
or

RAILROAD

Selected Situations at all Times

*

they are:

icy be

:

SECURITIES

from

consider

must

tics?

477,884.

>

J m c o

synthetics

Co., Inc., headed

kind

The Emergency Impact
On Trnst Investments

should

Specialists in

25 Broad Street

products,

Net sales of the
company and its
consolidated
subsidiaries

influ¬

in

allied

miscellaneous chemical products.

company

though Federal income taxes were
cut more than $11.6
million, earn¬
$2.28

special

account

tax

the

manufac¬

products

medical

decline in

Expenditures
The

one

program,

chemicals, rubber chemicals, sol¬
vents, insecticides and herpicides,

debit of $7,889,555 a year
It was the
aggregate of

maintenance, and

ences

and

its

of

be

chemicals, intermediates,
plastics, plasticizers, phosphorous

was

$430,041 in this

Continued

widely diversified line of

a

financing

of

Jieavy

augmented by
a
sharp drop in Federal income
taxes. In December 1951 there was

against

will

Chemical

Representative

68% of the combined drop in reve¬
nues
and
increased
transporta¬

a

shares

sale

capital additions
and facilities.

tures

This

the

involves

$3 million.

tion costs.

from

expansion

Monsanto

than

more

public

Dillon, Read &

'■

to
the general funds
of
Monsanto Chemical Co. and
used,
among other things, to further the

facilities.

Maintenance of way accruals

largest

common

added

by reversals of earlier charges for
amortization of

Effects

writers who publicly offered the bonds.

(par
$5)
of
Monsanto
Chemical Co. at $98 per share.

inflated

figure

the

was

undertaken.

stock

the De¬

cember

which

ity,

a

nation-wide group of 144 members
which on Feb. 5 offered to the

141,355, or more than 50%. This is
particularly significant when it is

the

Egly

II.

of $215,000,000 Revenue Bonds of the Author¬

proceeds of sale

transportation costs were again
higher
than
in
the
like
1950

realized

is shown receiving from Henry

Authority,

(left), Vice-President of Dillon, Read & Co., Inc., check covering

Smith, Barney Group

was

Tunnel

and

month. \ The

primary saving

a

/capital

goods will still be very high.

Common Offered by

in

as

1951,
yet measured by prewar
standards,- the {output of these

George E. Spargo, (right), General Manger of Triborough Bridge

maintenance charges, particu¬
larly for equipment. Maintenance
of equipment costs were cut
$8,-

well

as

goods and of housing in 1952 will
be smaller than in 1950 and in

Monsanto Chemical

One significant, and
discourag¬
ing fact, is that with freight vol¬
ume off,
passenger traffic up only
modestly, and mail business, exadjustments, apparently virtually
unchanged,
the
all
important

The effects of

Although

$681,000. Where did the economies
decline?

The

will

will not be as .great as after the
termination of hostilities in 1945/

r V''

year.

decline.

or

course,

pent-up demand for housing
durable goods at that time

and

busi¬ siasm. February, however, should
with show wide improvement over last

the passenger

off

of

the economy of the country. The
fact should not be overlooked that

in¬

increases, the adjustment levels,

revenues

.

penditures will be considerable

effect only part of the year. Mean¬

v and
w i t h
unfavorable
having been about $18 million in weather conditions in parts of the
December 1950, and $3.4 million service area, it appears unlikely
in December 1951. As a minor off¬ that
the
road's
January results
set to the declines in
freight and will provoke any great enthu¬
mail

level

military

in

well ,as capital
corporations
will

depend
the international political sit¬

on

while, with rail traffic generally
retroactive continuing
below
year-earlier

months

Then both military
as

by

decrease,

the

around

is granted will

what :relief

$14

That drop is

Both

accruals

mail pay

almost

of

1953, "the defense effort should
its peak; and the same may
expected of corporate capital

.expenditures

December, 1951, than in De¬
cember, 1950, by far the major first of May. Granting of the full
proportion of the revenue decline increase is doubtful and obviously
was

;•,,■;
'
By the end of 1952 or sometime

be

be

effective

i95o.

reach

es¬

granted in the
proceedings, probably in

present

in

and

1951

;

in

generally expected

that some further freight rate

than in

smaller

be

dividends

total

in

in

were

that

by

will

It is

generally be¬
paid
corporations during 1952

lieved
.out

$1.49 per

or

already become evi¬

the decline.

on

If the full rate in¬

throughout the

somewhat lower

were

now

creases

freight

themselves

of 1951 it had

timate would be increased to $5.72

be

to

$9,586,000,

share of stock.

interesting to note that the

of

However, one may . assume that
earnings of most corporations will
be large enough to pay the regular

the levels prevailing at
the
beginning of the year, the
management estimates 1952 net

million from a year earlier.
In
sharp contrast, net income, at $6,377,658,
was
almost $2 million
higher than in December, 1950. It

believed

prices of manufac¬

the

However, operating expenses
and taxes will also go up and the

value, it would appear that
a truly remark¬
company
able job in finally getting costs
operating
under control.
Gross revenues for changed,
the month were off more than $15
steady at

43%

the

current

the

in

or

goods; and this will depress
further earnings of corporations.

year.

the road had done

December net accounted for

in

pos¬

wages,

tured

case,

ment

at face

is also

ity

Central management is
looking forward to some improve¬

net income for December

and

nue

with

connection

in

ICC

rate

in

will not be accompanied by a cor¬
responding increase in productiv¬

report better than had been estimated in
of New York Central, released last most quarters.
week, was an interesting docu¬
Based on estimates filed with
The

increases

that

fibst

outbreak

During

nine
of

this

months

hostilities

after
in

the

Korea.

the demand
capital will be con¬

period,

for credit and

siderable; and hence

money

rates

program.

It

is

place. Above all, the
timing, while extremely - impor¬
tant, is almost impossible to deter¬
may

take

mine because it involves not

international
ments

as

well

political
as

only

develop¬

domestic devel-

Volume 175

' Number

5088

opments but also the
cal

reaction

.

.

psychologi¬

individuals

of

The Commercial and Financial Chronicle

.

and

porations begin to taper off is, to

the least, uncertain.

say

business leaders to such develop¬
ments.
Thus a change in the in¬

decline

ternational

ference

political scene would
have an important bearing on the
speed and magnitude of the re-

.

;

armament':

program.

Moreover,

:.

the 1952 Presidential election may
be a very crucial one; and the out¬
of

come

mine

the

election

whether

economic
about

tinue

decades

policy ' will
tainties
cult
to

in

ago

will

new

a

economic

con¬

by

While these

make it

to

and

set

be!,' adopted

United States.
:

which

whether

or

deter¬

may

thev political

trends

two

,

the

uncer-

extremely, diffi¬
the timing and

pin-point

predict with any degree of

ac¬

eral consensus

take place.
The dif¬
opinion is only as to

in

degree of the decline.

the

outlook

certain,

becomes

cautious

-

:-X'-

■,

less as here in-

r

-

■

• •.

->

*.•, •

■

in/ the

eliminated,

effects

in¬ equity

will

yet

econ¬

witness

prices.

It,

is

>

and

nated.

generally

Since

the

return on

to

capital expenditures begin to de¬

ing

should

to

cline,

ligations has become

what

will

extent

termined

officer

from

take

have

based

and
be

to

de¬

his

on

It

judg¬

own

downward

a

and

is

therefore

readjustment

in

fixed-income-bearing

tive than

in¬

ob¬

during the last decade

If the

is

turn

derived

from

analysis

an

of all known forces that may

fluence

or

markets.

tapering off of military visibility

to

during expenditures and of capital

hence

expen¬

ditures by corporations is followed

may not be advis¬

particularly the ratio between
equities is always based!
prudent judgment which ini

bonds and
on

attrac¬

more

necessary

so.

and

bonds

considerably, invest¬

sometime

the position of

on

has increased

and

likely to take place.

the quire whether
individual beneficiary of a trust. 1952 or 1953 it
Only by taking into account the
ment

military

once,

in business is

individual trust

the

by

stocks

place

that

bond

on

of many corporations. The investment policy of a trust company^

the next year, the danger of infla¬
tion will have been largely elimi¬

and downs with the

ups

opposite

a

future

,

the. shift

right

The

is

now

in- /

economics

and!

low,

than usual caution is

more

warranted.

broad outlook for business and the
general

trend

commodity and

of

well

as

of

as

money

>

the trust investment of¬

can

ficer

"

been

bonds

rates

t

to reduce the proportion of by a decline in business
activity,
equities and increase the propor¬ as is generally expected, and iJf
tion of bonds.
the break-even point cannot be
(7) If a proper balance between reduced rapidly, even a moderate
defense and the civilian needs is decline in gross income can have ai
established during the present and pronounced effect on net income

when

security prices

or

have

omy

un¬

policy in the

able

agreed

curacy what the details of the
business pattern will be, the broad

-cheated.://:
f■

highly

bonds

it is fairly evident that the

When

adoption of

stocks -and

25

(585)

vestment of trust funds. Of course,

outline is

more

cycle

judgment material

reasonable

indicate the

would

between

in the portfolios of trusts.
While it is quite possible that the
excessive swings of the business

a

will

the

more

ratios
held

The gen¬

to be that

seems

1

reasonable judgment and

use

VThe above, however,;should not

protect to

^ be taken to forecast a serious devpressipn; in the /United:States/ of

the

interests

and

the remainderman.

/the

magnitude

the

the

early :v'30's.

that

occurredm in

The -economy ,i of
/the /country/is; too idynamicv: ;and

£the

v:

;^^li|ieal

economic

/changes

have ./ taken

that

/place

'

cally preclude^ a depression; of the

the

beneficiary,.

Conclusions

•

.

(1)

The emergency arising out
of the Korean war is not tempor¬
ary in character and will not come
to

-d

in

has

gency

Korea.

emer¬

motion

in

set

The

forces

which will be long felt in the eco¬
'30's;,acnomic and social life of the coun¬
companied by/large: scale unemtry. From now on for an indefi¬
% ployment ,/ and /sharp ri breaks ;• in
nite period of years, the military
J v&ues." /Byso expenditures of the United States
long as it is the avowed policy of
will be larger than ever before in
both political parties to continue
peacetime, thus not only keeping
with the '£arm sUpport
policy pne total Federal expenditures .at a
cannot visualize a major break in
high level but also taxes at rates
commodity prices. Again, thfe eco¬ which have never existed
previ¬
nomic developments durihgvl949
ously in peacetime.*/The number,
indicate •; how" "commodities
act of men and women in the services
even
though '/business activity is will continue to be
large, thus af¬
decreasing.
Because the cost of fecting the labor
supply; and the
doing business is high and a ma¬ production of defense products
terial decline in business
activity will play a much more important;
is not envisaged, one
may expect role in the future than in the past.
that the dependence of business
(2) The present emergency has
on the banks will continue
large; not only changed the expected
and, therefore, a return to money business
pattern during 1950-52,
rates as they existed prior to the
but it will continue to influence

magnitude ■? of the

the

on

.

end with the termination of

an

hostilities
■t.

of his ability

best
of

early

'

outbreak

of

the

Korean

War

is

also not to be expected.

Investment
If

the

above

economic

Policy
of

of

consequences

the
the

present emergency is correct, it
follows that sometime during 1952
or

1953, depending on the speed
magnitude of the defense pro¬

and

gram, a change in the investment

policies

of

trust companies may
This would mean that

take place.

activity in the future.
greatly stimulated) capital
expenditures by corporations; it
has brought about a material in¬
crease in the productive capacity
of

the
prices and wages,
thus permanently increasing costs
of production.
It has contributed
to

increase

point of
the

smaller

United

proportion

Unless
event

in

which

occurs

port¬
equities.

of

other

some

the

of

consist

unforeseen
would

result

thereof

will

be

activity begins

States

Government in

definitely

tablished the United States

leader of

the

free

world

as

and

taken place
that

and that any decline
place during the

take

may

peak of the rearmament program

other nations.

the

From

now

on,

bound

the

to

to

taper off,
will

forces

deflation.

of

give

the forces of
way

the protection

conditions,

to

Under

the

these
of

the

purchasing

power of principal and
income from now on should not be

as

the

important as it has been since
end of the war and particu¬

larly since

the

outbreak

tilities in Korea.
on

have

bonds

of

increased

consid¬

tend

today

more

has been the

case

attractive than
for a great many

years.

ities

traded

its

mar¬

Korean

effect
at

the

time

rescheduling of production

downward

a

copper

these

production will

or

1953

is

indicated

the

of

free

trends that

nations

security

ther

one may expect in the
markets,, i.e.,
between
stocks and bonds, but also because
reasonable judgment based on the

business
a

outlook

policy.

business
and

would

The

dictate

outlook

afters

for

the

the

and

the

As

prices
same

standard

far

over

Accordingly, in 1955-56, domestic produc¬
tion

plus imports could bring the U. S.

levels.

Based

come

from

Project and

a

on

copper

historical comparisons,

large-scale shooting
could support

copper

a

and

this amount

war,

Federal Reserve,

Board Index of Industrial Production of 270a
an

increase of 24%

over

the present,

and 45%

above the first half of 1950.

Sulphide Plant at Chuquicamata,

•

These

the

•

»

begin operations this 'spring. By 1953,
projects should raise present levels of

the basis of the facts there is

production by about 95,000 tons yearly.

considering long-range substitution of other

are

'things to come' in
no

copper.

Ott

necessity for

materials for the red metal.

of

MINING

COMPANY

The American Brass

V

Andes

Company

Anaconda Wire & Cable

international Smelting

Company

and Refining Company

of

a

PRODUCERS

fur¬
com¬

Chile

52320*

Copper Mining Company

Copper Company

Greene Cananea

Copper Company

Copper, Zinc, Lead, Silver, Gold, Cadmium, Vanadium, Superphosphate, Manganese Ore, Ferromanganese*
OF:

Electrical Wires and Cables,

Copper, Brass, Bronze and other Copper Alloys in such forms

Plate, Tube, Pipe, Rod, Wire, Forgings, Stampings, Extrusions, Flexible Metal Hose and Tubing.

time in¬

living

OF:

MANUFACTURERS

of
t

as

—

production levels.

same

trust

companies
time is ap¬

military expendi¬ are concerned, the
capital outlays by cor¬ proaching for a reappraisal of the




could be produced annually

copper

and above present

not only

the people.

(6)

by 1955, not less than 450,000 ton#:

econ¬

the

healthy, to prevent

modities and at the
crease

at

economy

in

mated that
of

suscept¬
swing when

country but of other free

increase

During 1954-55 still

more

is how to
military might of

world

keep

this

—

projects in the U. S. and friendly

.foreign countries will further augment the
increasing copper supply. All told, it is esti¬

barring

The first major in¬

COPPER

time

1952

only because of the changed

projects

new

new

represent an increase of about 20% over present

Toward the close of 1953, Anaconda's new

emergency

the

other

opera¬

AnacondA

the

Other

supply to 1,800,000 tons yearly. This would

two

copper

ex¬

pres^

supply at the rate of about

copper

plant

\

defense expenditures and capital
outlays by corporations begin to
taper off.
(5) The prime problem arising
of

yearly

favorable

a

made

rigid and

ible

to

/ ;

—

annual rate of 30,000 ton.c*.

125,000 tons.

before

should know the facts about the

projects

an

activity, it has

omy more

during

tures

had

business

same

in

new

Chile,

secur¬

organized

on

War has

on

the

strengthen

such

one

Anaconda when the Greater Butte

changes.
(4) While the aftermath of the

A change in the investment pol¬
icy of trust companies sometime

not

or

ent

of

to aggravate this situa¬

prices of commodities and

—

may cost

out

erably in the last few months and
are

will

others

many

impossible. But

future of copper.

tion and result in wider swings in

hos¬

Moreover, yields

—

producing at

By then, Anaconda will be adding to the

has

only moderate in charac¬ kets for securities and commodi¬
ties
of the
United
States.
The
not all-embracing.
Once
the rearmament program and cap¬ novelty of the experience as well
as the lack of
ital expenditures by corporations
proper information
ibegin

not

start

any,,

find

organized

instances this

long-term decisions that

crease

is

some

great deal of money in engineering, new

tions

and

inflation

any

free

in

In

-

difficult, if

New Anaconda

nations

problems

Yerington project in Nevada is expected to

the confusion

be logical and practicable. In

facilities

incident

reflection

to wipe away

Industry has
urged to substitute aluminum and other

es¬

the

will be

ter

by too much talk supported by too few
.//, /'■; _,'//' .v\ V.

...

throughout the
world and particularly among the

political

surrounding the

caused

a

The initiative taken by the

Korean conflict has

screen

picture

making

decline.

(3)

the smoke

remove

copper

it is

and
fully

buying by the public and thus imposed on us responsibilities
business, it would seem that the and burdens previously carried by

greatest decline in the purchasing
of the dollar has already

to

may

scare

power

per

materials for copper.

break-even

corporations,

many

effects

the

felt when business
to

would

in

.

.

defense-induced shortages of cop¬
and aluminum. This statement is an effort

been

between

an

.

Substitution poses

the nation; it has renewed

spiral

make

the present

facts.

has

greater emphasis would be placed
again on bonds, and a relatively
folio

to

business

It

analysis

Many users of copper haveconnection with
usually in vital decisions

;

{'

as

Shee^
-

26

Financial Chronicle

The Commercial and

(586)

.

.

Thursday, February 7, 1952

.

/

spective holdings at the time the
capital
increase* become effec¬
tive Norris said."

News About Banks

Canadian Securities

At

CONSOLIDATIONS

REVISED

witnessed

Bank

of

Commerce

possibly

and

ditions, the recent survey of the volume,
Canadian

a

some

de¬

well be that panic

It may

cline.

Driscoll

J.

James States

and

Hellier, former Assistant Vice-

elected

been

have

Presidents,

are

deemed worthy

military prepar¬
viously established trends," the
Canadian
Bank
of
Commerce edness and resource development.
tain to continue:

points out in closing its review of We can expect, therefore, in the
1951. "At present three light of the acceleration in de¬
fense production evidenced in the
or more factors are evident which
suggest that the year ahead is no last quarter of 1951, that there will
exception," is a further comment. be a steady increase during the
Elaborating on these three fac¬ coming months, possibly reaching
a peak early in 1953.
We can also
tors, the review states:
expect continued emphasis on the
^
The uneasiness engendered by
expansion of primary production
the possibility of further acts of
and
on
resource
development.
aggression underlies many deci¬ These efforts will
require addi¬
sions. Military observers have not
tional
labor, steady capital in¬
discounted the possibility of con¬
vestment and construction mate¬
the year

flict

in

Southeast

Mediterranean.

and

the

now

Asia

the

We know

rials.

r

first

"The

quarter of this

significance

year

of the Korean War
seems likely to be marked by con¬
although the far-reaching conse¬
tinuing dislocations and unfavor¬
quences of American action await
able comparisons with the same
historical
perspective.
We
can
period of 1951. It must be remem¬
trace
for business and
industry
bered, however, that in most re¬
some of the results:
the upward
spects the first quarter of 1951
movement
of
wholesale
prices, was
abnormal, that retail sales, in¬
panic buying and increases in the dustrial
production and employ¬
tcost of living.
Further conflict ment were
enjoying a period of
(■which we do not seek) well could
activity wholly unrelated to the
mean
a -more
intensive military
normal seasonal trend, and that
program than that planned, with
this period does not, therefore, of¬
all that such activity could bring.
fer
a
valid
statistical
basis
of
"The

second

uncertainty is the comparison.

The factors currently
in 1952 (and be¬ at work are so diverse, and in
yond). The persistence of infla¬ some respects so inimical, that the
tionary forces seems to invite con¬ forecast for the first half of the
tinued upward adjustments to off¬
year, and certainly until the 1952set their impact. While the widely 53
budget sets the pattern, must be
accepted cure seems to aggravate "low visibility." With total em¬
rather than temper wage demands,
ployment rising above last year's
of wages

course

the

treatment

nevertheless con¬ level
and unemployment taking
What, therefore, may be the same upward trend as a result
expected by way of cost increases of local or seasonal factors and
awaits
the
unfolding of labor low mobility, the labor situation
policy.
is
probably
without
precedent.

tinues.

:-'V"High levels of industrial
ployment

over

the short

run

balancing
Another
on

anything

require a
rate
of
consumption.

has

been

psychology."

assume

em¬ Dragging
sales
of
consumers'
than goods may be expected to receive
counter¬ a fillip from the payment of old

more

uncertainty thus centers

what

sumer

that

as

wider pattern of

called

"con¬

It is usual to

income

rises

a

spending follows.

;Yet in the past 12 months

we

have

pensions, and

the impact of
the defense
program,
which in
some industries is already sustain¬
ing and in others increasing the
rate
of activity,
is expected to
grow steadily by the second quar¬
age

be fortunate enough
to hold to the course set early in

1951

we

of

Government
Provincial

Municipal
Corporation

incorporated
Two Wall Street

New York 5,N.Y.
WORTH 4-2400

NY

1-1045

can

be

1951.




expect further in¬
volume and value

better

balance

demand

for

than

scarce

industrial materials does not

seem

likely to slacken, however, and
unremitting pressure from labor
for upward adjustments in wage
rates means a similar adjustment
in costs; the time lost in wage dis¬
putes works against the increase
in production which is so
sorely
needed. We can, therefore, expect
continued tight supply situations,
particularly in strategic materials,
as
military ■ preparations
grow
appce;

Boston 9, Mass.

in

The

and

Bailey, formerly As¬

sistant Vice-President of National

Bank

Sihawmut

Boston,

of

has

been elected Assistant Vice-Presi¬

dent

Bank &

Chemical

of

New York,

Company,
nounced

Feb.

on

an¬

A

Chemical.

Class

the

Trust

was

by Mr. Helm,

the

of

President

1

it

of

1937

of

Harvard

College, Mr. Bailey spent

two years

with West Point Manu¬

facturing

Co.,

in

and

West

transferred

1939

Ga.,

Point,

1946

his

as

Lieutenant and

a

release

upon

the National
Bailey is the son
of Harry L. Bailey, former Presi¬
dent of Wellington
Sears Com¬

textile commission house.
At Chemical, Mr. Bailey will be
associated with the group of of¬
ficers handling the bank's busi¬
pany,

dislocations

and

dis¬

companiment
strength."

—

in

this

lies

ac¬

our

^.

N.
Y.^ 'with common
$750,000Eand the Bh>nx-

Trust

Bronx-

of

Company

Vice-President,

Management

Trust Company

announced

of New York

Chairman
Thomas

Mr.

Vice-President

was

of

has

since

the

with

career

Guaranty

the

been

Guaranty

a

His

1943.

Trust

Company has been identified with
its banking relationships in the
Western

he

ciation,

once

Vice-President
&

A past President

States.

California

the

of

Savings

Bankers

First Trust

the

Bank

of

Previously

Calif.

"Executive

was

of

Asso¬

he

Pasadena,
was

with

Blyth & Co. and Chase Securities
Co.

Early

in

World

War

II

he

the War Production Board

served

and

Rochelle,

crease

:I:

of

Bank

New

of

Bank

National

New

At the effective date of

Rochelle.

consolidation,

consolidated

the

bank had

capital stock of $1,250,000, divided into 62,500 shares of
common stock of the par value of
surplus of $1,200,000;
undivided profits of not less

$20

each;

and

than

$150,000.
*

*

*

At their annual meeting on Jan.
8 the stockholders of The Nation¬
State

Bank

the

approved
dend

of

N.

Newark,

33 %%

J.,

divi¬

stock

proposed the previous month.
"Evening News" of

The

Jan. 8

H.

of

New

the promotion of

Miller Lawder from Assistant

Vice-President

to

Vice-President.

Mr. Lawder has had wide experi¬

mittee

of

the

Bank, and the ap¬
pointment of John M. Nosworthy
to

the

Bronx

Heyke
dent

is

of

Co. and

Executive

the
a

Committee.

Mr.

Vice-Presi¬

Brooklyn Union Gas.

Trustee of the Brooklyn

Savings Bank. Mr. Nosworthy is
a
Trustee, and Assistant to the
President
Bank.

the

of

Bronx

Savings

■

*

National

"The

Arthur

E.

Lodge has been

ap¬

pointed Assistant Mortgage Offi¬
cer
of
the
Bay Ridge Savings
Bank of Brooklyn, N. Y., David B.
Jan. 28.

Mr. Lodge has been with

the bank since 1929.

Banking.
York

on

He

also

He is

a

grad¬

Institute of

attended New

University and the

United

$21,000,000 and the surplus
$18,500,000 to $21,500,000 or

from
a

combined capital and surplus of

$42,500,00.

Including
undivided
of $4,600,000 and

profits in

excess

than $3,500,000,
capital and surplus
will provide for a capital struc¬
ture of over $50,000,000.
The new
of

reserves

the

more

increased

stock

underwritten by a syn¬

was

dicate

of

investment

dividend

State

ord

Walker, Austin & Waggener; First Southwest Company
and Dallas Rupe & Son.
$

•f

the

$

annual

stockholders
Merchants

of

meeting
The

National

share* being distributed
for each three held. In increasing

were

the

Bank

&

of

Los

were

an¬

nounced

the

of

Farmers

immediately, Angeles, 15 promotions*

payable

today,

rec¬

bankers

headed by

At

shares affect stockholders of

with

one

capital funds out of surplus,

the

number

total

cash

in

of

is

shares

after

by the bank's President,
Rossetti.
The
following
promoted
to
Vice-Presi¬

H.

dents:
Oscar T.
Lawler, A. M.
Gaines, A. E. Oliver and John N.
Hunt;
promotions
to
Assistant

Vice-Presidents

29."

Feb.

V.

were L.
Figueroa,
Hellmuth, Walter M. Scott, J.

R.

H

F. Holland
F.

Chair¬

Peterson,

Raymond

of the Board of the First Na¬

man

tional

Bank

Trust

and

Company

of Paterson and Clifton, N. J., nas
announced the transfer of

$1,500,-

000 from undivided

profits to

sur¬

After giving

effect to

this

plus.

transfer which
the

Board

remains

authorized

was

of

at

by

Directors, capital
shares of $25

150,000

value

par

stock,

common

total of $3,750,000.

or

William

R.

of

Mitchell, Presi¬

Philadelphia,

Feb.

4

announced
following promo¬

the

Francis

S.

Nicholson

Investment

sistant

from

Officer

to

As¬

Vice-President; William L.

Muttart and Frank G. Royce from

Officers

Trust

Presidents;

Assistant

to

Vice-

Officers to

Trust

Trust

Offi¬

and Henry Ecroyd from As¬

cers;

sistant

Trust

Officer

Investment

to Trust Investment Officer.

Trott

Four

and

Kerr;

George

promotions

were

in the Trust Department as
follows: N. F. Wheeler and J. C.

Wright

Vice-Presidents

to

Assistant Trust Officers;
Assistant

to

and

M. Freis

Vice-President

and

Assistant Trust Officer and W. H.
Ferris to Assistant Trust Officer.

The

*

Bank

United
of

States

National

Portland, Oregon, elect¬

three

Vice-Presidents

new

annual

holders

and

January.

at

meeting of the share¬
directors

E.

held

in

C.

Sammons, Presi¬
dent, also announced the election
of five

Assistant

new

Vice-Presi¬

dents, five Assistant Cashiers and
three

Assistant

newly-created

Managers.
Vice

The

Presidents

-

Herbert Ambler, P. L. Metschan and L. C. Smith. Mr. Ambler
are

III joined the United States National

John H. Webster,

and Norman E. Walz from Assist¬
ant

Clark.

E.

made

the

»J»

K.

J.

were

a

dent of the Provident Trust Com¬
pany

iers

ed
!j{

C.

now

912.83.
JjS

Howard

and

those-promoted to Assistant Cash¬

%

Surplus is

$5,250,000. At Dec. 31, 1951 un¬
divided profits stood at $5,003,-

John

Bank in 1930 when the West Coast

National
been

Portland
named

acquired.

was

the

at

Citizens

since

1933

Assistant

an

He

has

branch
and

in

was

Vice-Presi¬

T. Macartney and Harold M. Shaw

dent in 1943.

have

staff of the United States Nation¬

been

appointed

Assistant

al's

Trust Officers.

Ladd

Mr. Smith, is on the

&

Bush-Salem

branch

in the capital city.

Directors
Bank

Jan.

of

8

Lincoln

of

Washington,

National

D.

C.,

on

recommended

doubling of
the capital stock from $400,000 to
$800,000.
In
noting
this, the
Washington, D. C. "Post" added in

He entered the
banking field with the old U. S.

National

tional

special

holders

to

been set

meeting

vote

for

of stock¬
the plan has

on

Feb.

25.

Richard

A.

Norris, Executive Vice-President,
said that under the plan 4.000 ad¬
will

be

as

a

$100-par stock

Of

this

amount,

Salem

in

of

stock

Portland

purchased the

He

was

chosen

Vice-President

in

Assist¬

an

1940.

issue

share.

will be

Present

be accorded

shares in

sold

at

$200

stockholders

rights to buy the

proportion to their

a

States

National

named

year

1929.

Assistant

an

dent in

in

1946

and

He

Mr.

was

Vice-Presi¬

in

July of that
became manager of the RoseHe returned to the

burg branch.
head

office

in

Portland

in

1948.

New Assistant Vice-Presidents in¬

M.

C.

Barcus,

Thomas

A.

Crowe, C. H. Labbe, L. G. Lloyd
and Stanley H. Makelim, all at the

will

head office.

new

Assistant Cashiers

re¬

•

Metschan started with the United

clude

dividend.

2,000-share balance of the

1909.

bank, Mr. Smith became
Assistant
Manager of the new

shares

"The
new

issued.

of

will be distributed
rata among the shareholders

2,000
pro

shares

in

Salem

ant

"A

Bank

At the time the United States Na¬

branch.

part:

ditional

*

capital and surplus, in¬
creasing the capital from $18,000,000 to

reporting this said:

Trust

announces

will be divided equally be¬

Newark

*

Company

Irving Trust
York,

six

tween

tions:
#

stock at $40 per
shares held.

new

each

chase the

under the title of First West¬

National

al

for

right by stockholders to pur¬
new stock was required
to be exercised by Feb. 6.
The
the charter of the First proceeds of the new capital in¬

under

ed

on

in Southern California.

share of

one

Stock¬

entitled to purchase

weie

The

General

Feb. 4 by J. Luther

on

Cleveland,
Board.

the

of

holders

$500,000, were consolidated effec¬
tive at the close of business Jan.
11.
The consolidation was effect¬

be¬

to

with

associated

come

shares of additional stock.

share

%

Thomas,

Dallas,

of

zelle, Chairman, and Fred F. Flor¬
ence, President.
Warrants repre¬
senting
rights
were
issued
to
stockholders to purchase 150,000

ville, N. Y., with common stock of

R.

uate of the American

understandable

*

tional certificates will be redeem¬

Alfred

natural

and

ville

able

of

Advancement

McVean, President, announced

as

*

raised from 15,000 to 20,000. Frac¬

in the Southeastern states.

ness

stock of

joined

Mr.

Shawmut.

at

The First National' Bank of New

Rochelle,

Well¬

to

ington Sears Co. in New York. He
served in the Navy from 1942 un¬
til

*

at

member

the military meshes
with the civilian machinery. In a
free market economy this is a

turbances

Fifty Congress Street

the

production

should

A. E. Ames & Co.

Horace C.

School

Finance

Army

Benjamin Harrison.

'■■■■

chester

during 1952.
This ence in the
Company and pres¬
expanded production will go a
ently -is assigned to the district
long way towards relieving infla¬
which serves the bank's custom¬
tionary pressures which even now
ers, from
Chicago to the West
are less intense than
they were six Coast.
months ago. The rapid rise in the
cost of imported
raw
materials
J. Stewart Baker, Chairman of
such as textiles and rubber, which
the Bank of the Manhattan Com¬
characterized
the
first
part of
pany of New York, has announced
1951, seems unlikely to be re¬
the
appointment
of
John
E.
newed at a comparable rate; retail
trade is due for some revival and Heyke, Jr., to the Brooklyn Com¬
in

CANADIAN STOCKS

we

in

creases

CANADIAN BONDS

headquarters at 165 Broadway.

ter of the year.

"Should

J

Fort

Bank

on

Re¬

the

and

nounced

William

held

of

$6,000,0u0 increase in
surplus, it was an¬
jointly by Karl Hoblit-

proposed

some

which

National

public

capital

E.

meeting

stockholders

18

Texas, unanimously approved the

CAPITALIZATIONS

pertinent comments, buying late in 1950 swelled the Vice-Presidents of Chemical Bank
of pub¬ volume of retail sales while last & Trust Company, of New York,
lication in this column:
year
indirect
controls effected it was announced on Feb. 4 by
some restriction. Whether consum¬
"Whenever attempts are made
Harold H. Helm, President.
Mr.
er
demand will continue at the
to
project
emerging
economic
Driscoll, formerly at Chemical's
same rate through the year ahead
trends it is not unusual to dis¬
Rockefeller
Center
Office
will
is open to question; whether the
now take charge of the Commer¬
cover, in a dynamic economy par¬
ticularly, the existence of uncer¬ partial relaxation of credit curbs cial
Banking
Division* at
the
will alter consumption attitudes
tainties, significant in recent years
bank's 30 Broad Street Office. Mr.
awaits the test of time.
in the degree to which they influ¬
Hellier will continue as one of
"Two general trends appear cer¬ the loan officers of the
ence or distort the course of pre¬
bank, with
makes

Bankers

and

ETC.

NEW OFFICERS,

fairly substantial in¬
economic and financial situation crease in income over 1950, while
in Canada during the current year, estimates of retail sales indicate
despite generally prosperous con¬ no significant increase in physical

Referring to uncertainties in the

special

a

Jan.

NEW BRANCHES

WILLIAM J. McKAY

By

John

F.

Staff members named

Otto

are

and A.

T. L.

S.

Jones,

Sirianni,

Volume 175

Number 5088

.

.

.

The Commercial and Financial Chronicle

(587)
head

office; E. J.

zens

branch,

Schmitz, Citi¬
L. R. Fisher,

and

Ladd &

Bush-Salem branch. New
Assistant Branch Managers are R.

Bank and Insurance Stocks
By

H. E.

JOHNSON

Stock

The

United

Bank's

States

branch

iri

This Week

National

Sheridan,

little change in the relative size of the
large com¬
mercial banks of the country
during 1951.

gon, moved into new quarters on
Jan. 26, according to announce¬

by President Sammons.

open

At the end of the year there were 18 banks with

house marked the occasion.

The

Sheridan

lished

branch

lion dollars

An

While

in

March, 1949, following
the purchase of the First National
Bank of Sheridan.
Branch

G.

and

of

deposits or the same number as of Dec. 31, 1950.
a
gain of between 6% and 7% in deposits for
the increase was general with the result that most banks
gain for the year.

in

10%

Deposits

Palmer

of

Byrkit is Assistant Manager.

the

deposits maintained

National

Seattle

of

100,000

rights to
shares

of

one

share

new

for

21

purchase

the

from

subscribed

shares

bank

six

from

the

of

the

Phillips,

only bank in Seattle.

national

a

Nov.

1,

the

Bank

with

First

the

Seattle

Dexter
The

Horton

corporate

Seattle in 1931.
statewide

the

in

acquisition of

and its branches.

present name

system,
been
and

its

branch

12

the

other

#

Assistant

Turner

has

as

amounted
ninth

to

of the foreign depart¬
travelling widely for the
bank
in
Europe
and
America.
During
the
war,
Mr.
Turner

and Trade Board

istrator

for

ously, he

Wartime

three

was

Prices

cotton admin¬

as

years.

Previ¬

Assistant Manager

of the bank's main office in Mon¬

14.4%.

Bk.

of

Nat.

City

Bank Stocks

table

Amer.,

City

San

Bank,

Nat.

Guar.

below

the

deposit totals of the past three

Income

Trust

'51

14,

tion

additional

in

and

sale

price,

subject

to

the

$5,775 110,029

1

1

1

5,130 853,626

4,669 251,863

2

2

2

4,871 ,424,028

4,384 572,391

3

3

3

Y._

2,699 811,617

2,503 ,010,000

2,299 855,999

4

5

5

Y.

2,569 980,634

2,581 ,949,234

5

4

6

6

7
6

rights.

Chicago.

2)480 279,725

2,378 ,443,252

Bk.,

Chicago.

2,477, 371,530

2,404 ,786,934

2,278 611,344

Tr.

Bk.

Tr.,

Nat.,

First

Bank
of

in New

of

the

is

sixth

the

ended

mon

offering by Southwestern

Public

Service

Nov.

ing revenues were $22,475,787 and
net income applicable to the com¬

consecutive

annual

For the twelve months
31, 1951 total operat¬

675,000.

Dillon, Read & Co. Inc. will act
as
dealer-manager of a group of
securities dealers in soliciting the
exercise of subscription warrants.

stock

was

$4,447,540.

common

W ith Coburn & Middlebrook

through the issuance of
warrants giving stockholders the
additional right to subscribe for

HARTFORD, Conn.—Wallace I.
Frosch is with Coburn & Middle-

shares

not

brook, Incorporated, 100 Trumbull

rights

and

Co.

of

(Special

stock

taken

preemptive

on

utilizing

the

to The Financial

Chronicle)'

Street.

services

INTER-COUNTY TITLE
GUARANTY

COMPANY

MORTGAGE

AND

THOMAS

QUINN, PRESIDENT

H.

of Condition

ADMITTED
Cash

as

of December 31, 19ol

ASSETS

Hand and in Banks—General Funds

on

650,106.64

.

231,350.20

Banks—Agency Funds

300,000.00

U. S. Government Bonds

10,253.36

Accounts Receivable

6,039.46

Accrued Interest Receivable

Owned

56,220.84

.

1.00

Title Plant

1.00

1,642 ,085,318

1,431 527.783

8

9

1,552 ,289,582

1,449 655,700

9

11

Statutory Title Reserve secured by:
Cash in Banks

$ 88,913.96

......

U. S. Government Bonds
Total Admitted Assets

395,000.00

483,913.96

......

.

$1,737,886.46

.

9

1.737, 027,725

1,702 ,042,138

1,602 887,763

10

Pitts.

1,686 895,477

1,496 ,586,540

1,217 153,534

11

12

14

Y.__

1,663, 228,374

1,616 ,865,824

1,448 101,335

12

10

10

N.

LIABILITIES

8

CAPITAL

AND

Agency Accounts

....

Boston..

1,495, 148,775

1,432 ,029,521

1,376 ,694,768

13

14

1,471, 260,301

1,487 ,070,109

1,293 840.784

14

13

13

Y.

1,253, 199,083

1,212 ,071,132

1,127 809,682

15

16

15

N. Y._
Cleve.

1,241, 432,770

1,218 ,560,042

1,052 448,028

15

17

Reserves for Statutory Reinsurance

1,193, 940,026

1,154 ,364,995

1,058 372,953

17

17

16

Reserves for Taxes

Co., San Fran.

1,094, 400,071

1,018 ,097,266

937 432,332

18

18

$

231,350.20

12

Detroit..

18

of

Manhattan,
Trust

Co.,

Tr.

Tr.

Amer.

1,944 292,047

1,775, 158,558

Y.

Los Ang.

Bank,
Nat. Bk.,

Nat,

Y.__
N.

Bk.,

Hanover

Bk.

N.

Co., N.
&

Nat.

Irving

area

population

territory served is approximately

7

Nat.,

Nat.

Mellon

Valley

The

11

111.

First

Sec.-First

for

by stockholders
exercise of their preemptive

This

energy

4

7

Co.,.. N.

2,281 747,791
2,348 174,296

Chem.

same

allotment,

electric

of

territory which includes the
Texas and Oklahoma Panhandle,
the South Plains region of Texas
a

—

'49

$6,191 705,871

Tr.

Co.,

'50

5,149 631,444

Co.,

N.

16

Accounts

Payable and Accrued Expenses

.

.

25,893.12

.
.

483,913.96

.

241,979.61

.....

$300,700.00

Capital Stock
duces radar,

Bankers Underwrite

Raytheon Offering
Raytheon Manufacturing Co., a
leading
producer
of
electronic

Priced

at

$8 per-share, the stock
is being offered at the rate of one
additional

share^ for

held

each

four

An

son

&

of

record

Feb. 4,
underwriting
group
jointly by Hornblower &

and

on

Paine) Webber, Jack¬

Curtis

will

purchase from

the company all shares remaining
unsubscribed at the close of the

period

Feb.

on

18,

Raytheon will

tubes.

from the

financing to replace

assets

usedan

York

Curb

Exchange

greater volume of business.
company
of

orders

ment

increase working cap¬
Ja substantially

currently has
for

tfctc

U.

S.

a

The

backlog
Govern¬

aggregating^ $171,000,000.

Through four major divisions,
Raytheon Manufacturing Co. pro-

Total Surplus to

Policy Holders

Total Liabilities and

Capital

....

754,749.57

....

$1,737,886.46

pur¬

power

Immediately prior

to

the

two-thirds of the

company's elec¬

business

was

for

PANEL

commer¬

YEAR

cial

customers, and the balance
government.
While the
proportion
has
been
reversed
for

1942

the

OF PROGRESS
INCOME

OFFICES
•

2

$44,387.28
73,175.47

2

1943

■'.>

4

185,790.11

1945

6

since the Korean

446,250.93

war,

1946

7

989,127.35

pected to remain

so

1947

1944

and is ex¬
for the next

products and electronic

cations

of

value

in

a

1,113,472.07

8

1,215,508.38

1949

9

1,517,768.15

1950

months, Raytheon is continu¬
ing to engage in the development
of

8

1948

18

9

2,151,376.49

10

2,341,337.68

1951

appli¬

peacetime

economy.

Dammes, Koerner

Admit

to

Wm. P. S. Earle, Jr.

cur¬

support

19,490.00

Surplus Reserve

approximately

Dammes,

plant expan¬

New

to

and

conflict,

the proceeds

juse

variety of special

subminiature

tronic

Members

Stocks

wide

a

pose,

scribe to 434,189 additional shares
of the company's common stock.

ital

1-1248-49

as

Korean

sion and to

Trading Dept.)

underwater sound ap¬
paratus, industrial electronic de¬
vices, television and radio receiv¬
ing sets and related tubes, as well

equipment, is offering to holders
of its common stock, rights to sub¬

Exchange

BROADWAY, NEW YORK 5, N. Y
Telephone: BArclay 7-3500

434,559.57

Surplus

Stock




The company is

Real Estate Owned
1949

5,442, 946,549

York

Bank

years

$6,815 866,795

New

Specialists in

ending Aug. 31, 1952.
principally en¬
gaged in the generation, distribu¬

ex¬

Feb.

on

The

year

The

1952, give holders the
right to subscribe at

Cash in

Rank

1950

1952.

Manager

1952.

which

subscription warrants,
pire at 4 p.m. (EST)

First Mortgages

Cont.

Portfolios

Teletype—NY

the relative position.

upon

Y.

Laird, Bissell & Meeds

Gibbs,

the gain

Y.__

N.

Members

Bell

^posits,

Manufac.

rent

(L. A.

Jan. 30,

purpose.

the

advance

Fran.

N.

Bank,

subscription

Breakdowns of:

Bond

sufficient to

was

fairly wide geographical distribution.

Chase

Weeks

120

This

Deposits

headed

Sources of Gross

13

shares held of record at the close
on

that

estimates that it will
spend approximately $21,800,000
for construction during the fiscal
company

the

each

to repay bank loans

or

for

11th

large and had little effect

1952.

treal.

Govt.

to

from

While most of them showed increased

the

shares

17 N. Y.

for

the construction of ad¬
improvements to its

obtained

>

As of December 31st

intendent

the

share

one

are

and

properties

new

at

of

mortgage
to be placed pri¬

Chemical Bank.

or

not

super¬

ment,

with

to

as the result of deposits
with Commercial National Bank & Trust

past five years,

served

share

per

sale'of
and

General

Manager of the Bank of Montreal,
(head office Montreal) it is an¬
For the

advanced

the

Cleveland

$

•»

an

Trust of New York

1951

purchase

banking of¬
the total of

size

in

year.

show

banking

has

difference

are shown for the 18 billion-dollar banks' in
the country. It is interesting to note that of the 18 largest banks
nine or one-half are located in New York.
The remaining nine

In the

bank

The

ninth, primarily

1935

John H. F. Turner has been ap¬

nounced.

from

Bankers

merger

Bankers

through

earlier.

year

and the relative size

was

fices, which bring
banking offices serving the state
of Washington to 52.

served

position

In

the Spo¬
Company

adopted.

consolidation;

pointed

banks.

May of last

was

total of 39 banks have

acquired

established

Mr.

several

lar banks.

of

At that time the

was

of

a

a

The bank became

operation

kane and Eastern Trust

formation

distinction

'o

in

of

$17.50

ditions

stock¬

the

for

Inc.,

war¬

common

Condensed Statement

National

name

rate

at

the

subscribe for

Co., of Pittsburgh continued to
gain in reflection of the growth of the bank and acquisitions.
There were only minor changes
among the other billion-dol¬

changed to First National Bank of

with

of

(chartered

Seattle

stock

to

stock

vately through Dillon, Read & Co.

stock¬

common

been

first

new

bonds which

of

com¬

subscription

Mellon National Bank & Trust

1882) and the
Seattle National Bank (chartered
1890) under the name of the First
Bank.

greater
First National
a

not

Trust

Horton
Bank

in deposits.

Safety Bank & Trust with approximately $102 million in deposits.
Security-First National Bank of Los Angeles moved down in
its relative size position from
eighth to 10th.
While the bank
showed some gain in
deposits, it did not equal that of Bankers

consolidated

National

small decline

a

place in the ranking of size. As with
Bankers Trust, the deposits of Chemical were aided
by outside
acquisitions. On March 15, 1951 Chemical acquired the National

Phillips

Dexter

that

bank

In 1872 the

was

deposits for

Continental Illinois National because of

year

increase

charter, became the

1929,

increase in

larger banks, Chemical Bank & Trust showed one of
the best gains in deposits last year.
On a percentage basis the

Dexter Horton National Bank. On

National

held

Of

changed to Dexter Hor¬
Co., and in 1910, upon grant

ton &

Last

in

name was

of

National

National, switched places. For a number of years these
have been approximately equal in size as measured
by de¬

eighth

bankfc
Company.
it was the

years,

Chase

respectively in terms of

Chicago banks, First National and Continental

gained through

first

and

10

next

holders

$10,000,000

Mexico.

size

16, 1870, when

Horton

For the

the

and

an

large with Continental Illinois having deposits of $2,480,279,725 and First National $2,477,371,530.
Acquisitions and mergers influenced the deposits and relative

Seattle-First National traces its

Seattle's

entitle

rants

its

to

The

common

and the Pecos

is

un¬

its capital stock and $3,000,000 to
its surplu^ account.

established

York

gain in deposits became the largest Chicago bank.

100,000

Dexter Horton and David

stock

holders.

new

upon

had

shares, $2,000,000 will be added to

founding to June

mon

un¬

Co.

time

the proceeds of the

use

the

a

shares not taken

banks

at

sale

New

and maintained their relative

posits.

the original
Of the $5,000,received by the bank

be

to

of

Illinois

subscription price.
000

Bank

The two large

The

all

largest bank.

Service

that

,

to

offering by South¬

an

Public

251,540 shares of additional

since

Trust of New York which showed

underwriters, headed by
& Co., Inc., has agreed to

Blyth

the

as

the highest in the history

derwriting
western

dealers,
techniques were
company in 1947

widely used by other utilities.
The utility company proposes

position.
Guaranty Trust of New York with an increase of 7.9% in
deposits became the fourth largest bank passing Manufacturers

right to purchase the new shares
at a subscription price of $50 per
share expires on Feb. 20. A group
of

City

Both of these institutions showed

1951

sub¬

shares held of record Jan. 15.

of investment bankers

of business

size.

com¬

each

position
are

Bank of New York rank second and third

First

Seattle, Wash.,

offered

to

-

stock of the bank at the rate

mon

of

Bank

being

are

scribe

of

its

total $6.8 billion and

now

increase

an

bank.

National
Stockholders

bil¬

one

was

Bank of America NT & SA of San Francisco with

B. C. Swails is

Manager

over

in

there

the year,
showed a

estab¬

was

was

soliciting

which

of

have

and

Dillon, Read & Co. Inc. heads

Bank Stocks

group

There

Ore¬

ment

—

of

group

developed by the

Offering

branch.

a

both

Underwrite Utility

W.

Schriber, Metropolitan branch,
Portland; G. H. Neuman and W.
E. Ritchie, Ladd & Bush-Salem

of

Dillon, Read Group

27

36

Wall

Street,

members

Exchange,
S.

Koerner

Earle,

of

in

JNTERr

McMann,

York

the New York

City,
Stock

will admit William P.
Jr.

15. Mr. Earle
ner

New

&

to

partnership

was

Shean,

formerly

Earle

Jewett & Shean.

&

a

Co.

Feb.
part¬
and

CouNiy
Manhattan, Bronx, New City,
White

Plains, Newark

TITLE

Brooklyn, Jamaica, Riverhead,
Floral Park,

Hackensack

28

The Commercial and Financial Chronicle

(588)

Continued

sales^ appeared in the
steel, textile and auto issues. Buy¬
ing of radio, electrical equipment
over

natural

and

your

upon

request

investment dealer,

or

from

months earlier.

three

securities

conservative
in¬

essentially
Fund's

portfolio

The

nature.

cluded

the

with

substantial proportion of

a

securities

convertible

for

several

During 1951, however, such
increased in popularity

securities

&

corporation

research

Fund's

keeping

in

is

involved

years.

from
Attitudes Toward Oils

Mixed

National

con¬

about the same pace as

tinued at

Prospectus

companies

gas

divided

120 BROADWAY, NEW YORK 5, N. Y.

and non-ferrous

the

market

it

and

in¬

became

metal stocks with

requirements.

As

result,

a

securities

con¬

to

of

1951

a

Building construction and
equipment issues represented the
only group to be sold on balance.
Preferreds

Convertible

Although the primary function
this survey is to analyze the
common
stock
holdings of the

of

funds, attention is properly called
the

to

ments in the convertible

issues.

Wellington

for

preference

Houghton
stocks

a

con¬

and

Axe-

likewise
added
preferred

holdings during the

Fifteen

quarter.

shown

grade

issues

"B"
its

to

preferred

convertible

several

Street, Boston

has

good

senior

vertible

50 State

of many manage¬

interest

percent

the

of

Fund is in¬
vested in preferred senior equi¬
ties, almost two-thirds of which
portfolio

Boston

of

convertible issues.

are

Even

more

interesting is the fact that all the
preferred stocks held by the Wis¬
consin Investment Company—rep¬

resenting

seven

companies

preferreds

are

converti¬

ble,

points out that this type of
security is "largely immune to the
rising trend of interest rates."
However,
A Mutual

Investment Fund

keynotes

policy, there
too

For

a

your

free prospectus

high

may

be objections to

percentage of such
under conditions which

currently

or-

conservatism

a

holdings

write

investment dealer

when

company's investment

a

prevail.

Witness

statement of Francis F.

Chairman

of

the

the

Randolph,

board

the

of

Whitehall Fund, appearing in that

CALVIN BULLOCK

company's annual report: "Bonds
preferred stocks convertible

and

Established 1891

into

the

common

stocks

categories

namely

American

and

Eastern

by
Tri-Continental,
Administration and Na¬

Capital
tional
funds

The

Investors.
well

as

two

former

Broad Street In¬

as

vesting
Corp.
bought
rather
heavily into the steel stocks. Other
transactions in a fairly representa¬
tive

number of issues of

industry
chains

noting

worth

acquisition

a

single

were

of

shares

of

the
food

by the Boston Fund; new
in bank stocks by

the

of

its

to

holding

major

of

Pittsburgh Consolidation Coal.)
Portfolio

cialized

aviation

funds);

Murray

Generally,

in

ever.

Green

Fund;

and

by the Fidelity Fund.

Analysis of individual and

mention

group

Several

relative
folios

of

panies.
and

individual

newcomers

the

Co.

the

investment

These

Express,

issues
to

of general

fication. This is

so

the

closed more
confirm
the

just
transpired to
year

vestment Corp. was

(about

of

company

of

before during

paratively
Of

tion.

the

the life of this
refer

we

in

enacted

state

com¬

financial institu¬

new

course

legislation
dozen

to

the

almost

jurisdictions,

a

well

as

the decision of the court of last

as

Caution

Notes of

resort in still

legalizing

another, specifically

the

use

of

investment

securities by trustees

company

ac¬

other two,

the longer range out¬

The

look.

trustees

the

of

annual

report that "there are no

conclusive

signs

recession

in

as

that the

yet

certain

consumer

lines is over,

although inventories
gradually worked down
manageable proportions

have been
to

more

jority
lack

of

trusteed

industrial

of

existing in

accounts

the

diversification

included

Eli

com¬

Lilly

"B", acquired by Adams
American International,

issues

inflation

an

For

in

as

hedge is interesting.

example, American European

Securities held 44.2%
oil

shares

The trustees of the Shareholders'

"It

end:

portfolios

many

show
more
this trend."

Trust of Boston state at the year-

heavy concentration of oil
held in

expenditures

likelihood of reversing

portfolios today.

many

were

The

ment

of its assets

must

be

recognized
and im¬
proved techniques have increased
the ability of industry to meet a
.

that

very

high

consumer

level of demand, that
psychology and spend¬

three-quarters ing habits can minimize inflation¬
and Massachu¬
of such holdings were in two issues ary pressures and that for many
Trust; B and L
—Amerada
and
Louisiana Land industries a buyer's market will
Associates
controlling
Wilshire
and Exploration. United States and continue to exist short of all-out
Oil
Company,
representing
a
Foreign Securities, (excluding its war. It is likewise important to
group purchase made by the Leh¬
man
Corp. and Vitro Manufac¬ holdings of U. S. and Interna¬ note that the armament and busi¬
ness
expansion programs cannot
turing and Public Service of New tional) was 43% in oils; the latter
Investors

setts

Mutual

Investors

Mexico bought

subsidiary

Fund

a

by Axe-Houghton
"A", this utility also being
added to the portfolio of the Axe-

by

Fund.

Other

Woodward

Republic

INVESTMENT

24 Federal Street

INVESTMENT
investing

new

Iron

third

one-half

in

company

was

invested

petroleum stocks with

of

this

entire

amount

represented by Amerada. General
American Investors held 37% of
its

total

in

assets

the

securities

continue indefinitely to play such
an

important role in the support

of the economy.
in

DEALER

While

no

investment

333

BOSTON

Investors;

Affiliated
Fund

OR

Montgomery Street

SAN FRANCISCO

upon

request

Lord, Abbett & Co.
New York

—

Chicago

—

Atlanta

—

Los Angeles

.

1925

FOUNDED

BONDS
(Series B1-B2-B3-B4)

A/jo4fon

hind

•>

PREFERRED STOCKS

Massachusetts
Investors Second Fund

(Series Kl-K'2)

COMMON STOCKS

M assachusctts

(Series S 1-S2-S3-S4)

Century Shares
The

Keystone Company

50 Congress Street, Boston

Please send
your
ten

me

Bond Fund

1 rust

OF BOSTON

describing

A

Organization and the shares of your

A.prospectus relating

Name.....

funds may

of any of these separate
be obtained from authorized dealers or
to the shares

a

new

SYSTEMATIC INVESTMENT
PROGRAM

.*.....

VANCE,
Address

Diversified Investment Company
Announces

Funds.

investment

SANDERS

«S>

COMPANY

for Purchasing its Shares

■

111

Gty

FfJTe

s

rp

9, Mass.

prospectuses

Investors V rust

State.




NEW

D 30

6i

Prospectus

Devonshire Street, Boston
*

YORK

Broadway

CHICAGO
izo

South I.aSalle Street

LOS
Zio

ANGELES

West Seventh Street

may

change

policy is presently
contemplated, the foregoing con¬
siderations are of increasing sig-

FUNDS

tlieir capital in

.

and

BOSTON

Participation in

.

plant' expansions

INCORPORATED

Certificates of

New

England Fund state in their 21st

& howard

Custodian Fund

assets,

which in¬

of

Certain notes of caution appear

has

Prospectus

eaton

and

thus invested

27%

of

quarter

a

because during

PROSPECTUSES OF THESE TITO INVESTMENT FUNDS MAY

Keystone

oil

cluded cash).

STOCK FUND

YOUR

extent

the

to

EATON & HOWARD

FItOM

Investors

gas

re¬ scattered throughout the year-end
investment statements. The first of these con¬
under the law than ever cerns the immediate period, the

spectability

port¬

BALANCED FUND

OBTAINED

1951,
Incorporated
invested 24.3%
in

portfolio composition and diversi¬

Concentration in Oils

were

BE

companies.

example, as of the end

stocks, Massachusetts
Investors
Trust
held
24.5%
in
these issues and State Street In¬

portfolio holdings would not be
complete at this particular time
brief

was

groups

exceptions here, how¬

are

For

natural

General Portfolio Composition

without

of

individual

closed-end

many

cal 41/2%

finds less con¬

one

in

open-em} funds than exists

There

Bowling

funds'

holdings
are huge. (Lehman's investment of
$14y2 million was valued at the
year-end at $45% million.)
profits in most of these

Co. of Texas and Harshaw Chemi¬

convertible preferred by

almost

The

invested.

among

Newcomers

EATON &• HOWARD

—1—

so

was

American Investors added

further

bought

stock risk

32%

Corp.

cording to "prudent man" prin¬ in the last few months." Their
ciples. This certainly
does not policy is "to continue the present
the
Delaware
Fund;
and
the
open up the door wide for all com¬ conservative balance in the Fund's
liquidation of coal securities by
panies and one questions whether holdings until their is additional
Bullock
Fund
and
Nation-wide
prudence recognized under the evidence that consumer purchases,
Securities.
(On the other hand,
law, would sanction for the ma¬ together with increasing rearma¬
General

purchases

considered

Lehman

commitments

suitable investments for Whitehall
common

invest¬

sold

were

"B"

are

other

of

companies in the Seligman
group, of which Whitehall is one,
are also interesting. The airlines,

Houghton

issuing companies

indus¬

ment

Fund when the

New York

One Wall Street

certain

in

are

—

Fund, two-thirds of whose hold¬
of

earlier."

Transactions
trial

were

while

centration

spe¬

companies;

of oil and natural gas

Braniff Airways

in the

7, 1952

Thursday, February

.

frequently, however,

compared with 22.18%

as

year

convertibles. The Johnston Mutual

ings

of America;

.

by the Delaware Fund (appearing

12.53% of net assets at the end

year.

Putnam Fund Distributors, Inc.

Insurance

Co.

Second

Investors

Lincoln National Life
Co. by the Investment

reduced

vertible

Seorrje

the

and

,

the

with the bullishness earlier in the

FUND

Fund;

Fund

H. P. Hood and Sons 6% preferred

shares was also mixed contrasting

PUTNAM

Massachusetts

Eaton

creasingly difficult to find issues

buyers slightly on the ascendent.
merchandising

k7/c

Stock

Howard

and

by the

that suited the Fund's investment

The outlook on the

,

Co.

Insurance

be fairly

the

on

in

Life

petroleum

to

appeared

Opinion
well

the

by

Dreyfus Fund; Jefferson Standard

Funds Accelerate Utilities Buying
chases

Ring

Piston

Muskegon

from first page

.

be obtained from your local
or The Parker Corporation,

investment dealer

200 Berkeley St., Boston 16, Mass.

l

Volume 175

"Number 5088 .". .The Commercial and Financial Chronicle

nificance and

the not too

in

dis¬

and

tant future may dictate

lastly,

from Francis Randolph, Chairman
of the boards of the five com¬

panies sponsored by J. and W.
Seligman: "Even though the prob¬
lems

of

less

of

adjustment to conditions
effort

not

at

the

business

vanced and

is well ad¬
activity ap¬

cycle

recent

imminent,

appear

business

lack

to

pears
more

do

rearmament

on

present

the

manage¬

and

represented

ments in

a

initial

fourth. There

commit¬
were

North

than in 1951, the prudent investor
in
1952 will
watch for further

signs of maturity of the business
cycle,
and
will
emphasize \ the
basic investment principles—care¬

uidated.

Seven

funds

likewise

lone sale of

Send

40,000. Kansas Power
Selling of the utilities, which
and Light and Public Service of amounted to
only a third of the
ties, spread of risk by diversifica¬ Public Utilities. But share volume Colorado were each added to ex¬ total over-all
purchases, was con¬
tion
of
selection, and constant of selling was heavier than the isting holdings in three portfolios centrated in relatively few issues.

ful selection

American

the

was

least

two

Memo

buoyancy.; of
Thus, more

years.

dis¬

were

popular stock, four trusts dispos¬
Consolidated
Edison
of offsetting sales in each of these ing of
63,255 shares. Heaviest liq¬
Utility Purchases
New York and Niagara Mohawk utilities.
Three
companies each uidation was in the holdings of
Favorite
company
among
the Power were third best liked is¬ acquired shares of Central Illinois the recently open-ended Blue
utility issues was Central and sues, six trusts purchasing 23,500 Public
Service,
New
England Ridge
Mutual
and
Massachtf-y
Southwest Corporation, which also shares of the former
and 28,000 Electric System and Public Serv¬
setts
Investors
Trust.
Virginia
shared top preference in the pre¬ shares of the latter.
There were ice Electric and Gas.
ceding quarter. Nine funds pur¬ single sales of each one of these
Continued on page 31
Several power and light issues
chased a total of 103,600 shares, stocks. Five funds
bought Ameri¬ were purchased partly through
three making new commitments; can
Telephone and Telegraph as the exercise of rights. These in¬
two sales equaled 25,000 shares.
compared with only three pur¬ cluded Consumers Power, 48,768
Southern Company, also one of chases in the third
quarter of the shares of which were added to
the leading favorites in the third year.
Holdings were lightened in ten portfolios, and Public Service
» • •
quarter, was second choice among two other portfolios. Middle South of Indiana of which
25,240 shares
the managers during the current Utilities
also found favor with were acquired by six funds. Ad¬
and
period. Five trusts added to port¬ five managements, while a sixth ditions of
Long Island Lighting
to trustees
folio
holdings and two others completely eliminated the issue made
by
four
companies also
counsellors. • <
made
initial
purchases totaling from its portfolio.
Purchases of were stimulated in part through
101,100 shares. No stock was liq¬ 8,800 shares contrasted with the the distribution of rights.

few words again

a

buying as 45,100 shares
posed of by only two
ments.

portfolio."
And

continuous supervision of se¬

curities owned."

important
changes in the composition of the

29

(589)

of individual securi¬

bought

30,093

shares

of

General

reprint—"Mutual

for

Small

Make

Funds

Living

Trusts Feasible"—written by

prominent lawyer. Learn
through the use of

a

how,

Balance Between Gash and Investments of 63 Investment
End

of Quarterly Periods September and

Mutual Funds, even people

Companies

of moderate

December, 1951

Net Cash & Gov'ts

Thous. of Dollars

Com. Stks. Plus Lower

Preferred Stocks

Per Cent

Funds:

Per Cent*

Sept.

Dec.

Sept.

Dec.

9,164

7,872

24.8

22.0

Axe-Houghton Fund "A"
Axe-Houghton "B",

3,984

4,502

20.7

21.9

11.8

1,471

813

6.9

3.7

22.9

2,686
3,358

3,586

3.7

4.8

3,930

8.6

147

152

21.1

-—

Commonwealth Investment

^Dreyfus
Eaton

Fund

~

-

—

Howard Balanced

&

,

Investors

Mutual

25.5

47.4

49.7
67.5
70.2

73.0

42.4

42.9

53.9

52.3

9.3

19.2

18.9

72.2

71.8

19.1

6.6

5.8

72.3

75.1

9.1'

Founded 1865

Members New York Stock and
Curb

*

4,778

5.8

6.2

30.6

29.6

63.6

64.2

51.1

53.5

9.4

9.1

39.5

37.4

235

12.2

10.0

10.7

11.0

77.1

79.0

10,298

9.669

3.4

3.0

*27.3

28.6

69.3

68.4

240

253

19.6

19.0

13.5

Mutual Fund-

13.7

66.9

137

3.0

6.7

36.8

31.7

60.2

61.6

636

2.4

2.8

18.8

18.7

78.8

78.5

3,441
2,445

19.1

19.0

28.1

29.1

52.8

51.9

George Putnam Fund

3,414
3,159

6.3

4.6

21.1

22.8

72.6

72.6

Scudder Stevens & Clark

7,570

6,838

20.3

18.8

26.2

27.3

53.5

53.9

440

311

6.6

4.6

18.0

19.1

75.4

76.3

30,562

29,021

16.3

15.0

21.8

22.5

61.9

62.5

106

53

4.8

2.4

44.7

44.8

50.5

52.8

601

526

13.9

11.4

5.3

'7.4

80.8

81.2

4,349

3,883

2.9

2.3

0.6

0.3

96.5

97.4

157

113

19.4

14.2

21.3

18.0

59.3

67.8

Blue Ridge Mutual Fund

6,714

5,637

22.0

23.3

None

None

78.0

76.7

Broad

1,492

308

6.3

1.3

4.8

6.3

88.9

92.4

2,063

2,277

16.3

0.5

None

83.2

82.0

170

321

1.6

2.7

1.5

1.5

96.9

95.8

15,766

17.4

15.5

None

None

82.6

84.5

1.356

10.5

10.8

2.0

2.3

87.5

86.9

3,754

8.8

5.9

3.3

0.9

87.9

93.2

MUrray Hill 2-7190

67.3

58

549

National
Nation

Securities—Income

Wide

Securities

Shareholders Trust of Boston
.

Exchanges

Uptown Office 10 E. 45th St., N.Y. 17

3,311

§Mutual Fund of Boston.—

>

address

copy,

KIDDER, PEABODY& CO.

69.0

23.3

*

298

-

free

Department.

;

Dec.

Sept.

30.6

4,382

General Investors Trust_^__

Johnston

Dec.

Sept.

3,156

Fully Administered Fund—Group Secur.
.

a

the Manager, Mutual Funds

Per Cent

End of-

American Business Shares

Boston Fund

For your

Grade Bonds & Pfds.

-End of-

Open-End Balanced

of

trust".
Invest. Bonds &

Net Cash & Gov'ts

enjoy
"living

means can

the advantages

Wellington Fund
Whitehall Fund

.1::

Wisconsin Investment

Co

...

Knickerbocker
Fund

Open-End Stock Funds:
.

Affiliated Fund

Bowling Green Fund
Street

Investing

Bullock Fund
Delaware

Dividend
Eaton

&

Fund

Shares

17,673

Howard

Stock

1,171

<dm

>

t,

v

/

18.0

For

phone or call at our office, or
Bend the attached coupon.

MAIL THE COUPON TODAY!

KNICKERBOCKER

Fund

5,418

-

First Mutual Trust Fund

*

SHARES,

—

INC.

,

$

Dept. C

'

Fidelity

Prospectus, describing
shares,

the Fund and its

20

33

44

1.1

1.6

73.6

73.1

25.3

25.3

Fundamental Investors

4,286

4.406

3.9

3.8

0.8

0.4

95.3

95.8J

General Capital Corp

3,584

2,105

22.7

16.6

None

None

77.3

83.4

103

137

4.4

5.0

None

None

95.6

8,252

6.864

7.2

6.1

None

None

92.8

93.9

J

1,477

1,100

52.2

48.0

None

None

47.8

52.0

I

3,187

3,011

20.3

18.4

1.0

0.3

78.7

81.3

528

211

3.7

1.5

1.2

0.6

95.1

Exchange Place, New York 5, N.Y.

95.0

97.9
31.2

Group Securities—Common Stock Fund
Incorporated Investors
Institutional Shs.—Stock & Bond Group
Investment Co. of America

Investors Management Fund
Knickerbocker Fund

•

9,099

9,660

58.0

61.8

8.9

7.0

33.1

Loomis-Sayles Mutual Fund
Loomis-Sayles Second Fund

3,478

4,050

33.5

36.6

10.5

11.2

56.0

52.2

3,854

4,170

32.0

33.7

10.4

11.9

57.6

9,683
1,746

12,289

2.2

2.8

None

None

6.3

None

None

without obligation, Prospectus

for Knickerbocker Fund.

Name_

I

Address
„

City

Stale

54.4

Massachusetts Investors

Send me,

Trust

Massachusetts Investors 2nd Fund
Mutual Investment Fund
National
New

97.8
.

176

14.8

12.8

30.6

30.4

54.6

56.8

709

1.9

2.6

None

None

98.1

97.4

1,196

25.0

24.1

8.3

10.5

66.7

65.4

324

610

5.8

10.6

22.9

22.1

71.3

67.3

1,892

2,496

8.5

11.1

None

None

91.5

88.9

6.0

Sovereign Investors

18

United Income Fund—United

Wall Street Investing

5

3.9

1.1

90.1

92.1

23,936

25,543

23.5

23.9

0.3

0.1

76.2

76.0

4,088

2,948

7.9

5.5

2.7

2.7

89.4

91.8

611

Street Investment Corp

665

20.0

21.1

None

None

80.0

78.9

Funds, Inc.

GROUP

93.7
'

1,160

Selected American Shares

r

97.2

94.6

523

England Fund

Closed-End

5.4

-167

Investors

Republic Investors

State

2,131

.

Corp...

j

,

6.8

SECURITIBJNC
19th
OF
The

YEAR

CONSECUTIVE DIVIDENDS
following First Quarter dividends

from net investment income have been

declared

payable

1952 to

Feb. 29,

shareholders of record Feb. 15, 1952.
Funds:

Companies:

Institutional Bond

Adams Express

3,122

2.864

5.7

5.3

1.6

0.6

92.7

94.1

American European Securities.
American International

1,187
1,547

1,354

9.2

10.6

6.3

5.1

84.5

84.3

684

6.1

2.7

2.2

0.8

91.7

96.5

Capital Administration

188

General American Investors...

233

2.2

8,134

8,672

1.8

15.7

15.7

4.3

16.6

•

16.5

81.6

81.3

General Bond

.10

.

Fully Administered.

.06*

.

Common Stock

.

.13

Low Priced Stock

.

.08

None

80.0

84.3

1,021

694

8.0

5.5

None

None

92.0

94.5

Automobile

.13

16,067

15,171

11.4.

10.5

0.4

0.4

88.2

89.1

Aviation

.10

3,363

2,500

25.8

19.8

3.4

3.6

70.8

76.6

Building

.12

66

92

1.9

3.2

None

None

98.1

96.8

Chemical

Tri-Continental

1,723

1,376

1.1

0.9

15.0

14.3

83.9

84.8

Electrical

2,666

4.5

4.5

0.7

0.7

94.8

94.8

Food........,........

U. S. International Securities...

2,589
5,078

4,220

8.1

6.8

0.3

0.5

91.6

92.7

Industrial Machinery...

General

Public

Lehman

Corporation

National

Service

Shares

Corp

ffOverseas Securities

,

Corp.
[■U. S. & Foreign Securities

Industry Classes:

.

.08

Equipment.,..

.

.18

.

.06

Change

♦Investment
Ba for Bonds;
for

bonds

IName

preferred

stocks:

Moody's

Aaa

"{"Portfolio

companies.

changed

from

exclusive

§Name
Nesbett

of

changed
Fund.

securities

from

in

subsidiary

Russell

Berg

ftSeptember figures

Open-End Companies:
Balanced Funds

or

Stock Funds

Fund.

revised.

of

61

Closed-End

Plus
8

Investment

Minus
10

2

Totals
20

23

3

29

4

7

1

Equipment.

.14

,

Railroad Bond
Railroad

Unchanged

.10

.

Petroleum

Companies

13

Companies

.11

Mining

(Period—Fourth Quarter, 1951)

through

Fitch's AAA through BB and approximate equivalents

preferreds.

associated

and

in Cash Positions

.15

.

Merchandising

SUMMARY
FOOTNOTES

.14

.

Investing Company

.03

.

...

.08

.

Railroad Stock
Steel

.09

.11

.

.06

Tobacco

12

T Ttiliti

^

.08

*!n addition, a distribution of 2c per share
CL




I

Totals—All

Companies..

25

30'

from 1951 net security profits will be paid.
-

6

61

30

The Commercial and Financial Chronicle

(590)

Thursday, February 7, 1952

.

.

.

Changes in Common Stock Holdings of 44 Investment Management Groups
(September 28-December

more
new

STOCK FUND

management groups. Issues which

more

eliminating the stock from their portfolios.

completely

or

or

italics. Numerals in parentheses indicate number of managements making entirely

managements sold than bought are in

purchases

31, 1951)

exceed sellers—or sellers exceed buyers—by two

which buyers

in

Transactions

'

Notice of 26th

Board

The

Stock

of

dividend

payable

declared

has

Fund

Investors

a

quarterly
per share

February 21,
of record as

on

shareholders

1

No. of

of

cents

twenty

Sold

—Bought—

Consecutive Dividend.
Directors

of

Sold

—Bought—

No. of

No. of

No. of

Shares

No. of

Trusts

Trusts

No. of

No. of

Trusts

Shares

4(1)

1952.

31,

6

H. K. Bradford,

W/J

None
3,500

None

5.600

Caterpillar Tractor
Deere and Co

9,700

Pretident

17,100

None

J.

None

I.

2

Case

STOCK FUND

4(2)

Minneapolis, Minnesota

17,000

18,500
800

3(1)

v

500
None
None

Chrysler

v General Motors
_____
Timken Roller Bearing...

12,700

5(1)

16,100
1,500

United

17,000
1,440

Airlines

Eastern

None

5,000
None

Panhandle Eastern Pipe

21,000

Republic Natural Gas_

4,600

2(1)

Aircraft

_~l

KD

The

of

Directors

5

Television-

clared

None

dividend of 15c per

a

shareholders

of

General

None

Lone

None

(new) 1,500

3

135 5. LaSalle Street,

4(2)

Chicago 3, Illinois

16(1)
12

32,300

6,2741/4
18,187

Masonite

Lead2

National

2,758
7,775

4,100

••IIIMItf • t >

•

•

•

Minerals

Inter.

9999

7(1)

•••
•••<!
•••

'

9 9 9

9990

9

1

•

9

• •

9

9

9

•

•

9 9
9

Dreyfus

9 9
9

9

9 9 9 9
9
9

9

9

9

9

9

9

9

9

9

9

9 9

9

9 9
9

9

A prospectus

■!

9

9 9

9 9

9

9

9

9

9

9

9

your

9

9

9

9

9

9
9

9

9

9

•

• •
•

•

Tel: WH 3-4140

9

9

9

•

9

•

2(1)

Glass:

None

—

•

29,250

Eli Lilly and Co. "B"
Parke Davis and Co
Sterling Drug

None

...

100

e

•

•
•

•

2

900

2

1,100

• • • e
•

•
•

•
e

e

3(3)

2(1)

2

3(1)
None

11,000

Philco Corp.
Radio Corp. of America
Sylvania Electric Products
Zenith Radio
-__L
Westinghouse Electric

_

r:
None

46,935

Corn

General

4,500

National

6,200

3,400
13,600

3

11,000
None

4(2)

22,000

2

3,700

4

17,300

None

None
None

None
None

None

None

4,800

2(2)

2,600

2(1)

None

None

None

None

None

None
None

4,000

Corp.

,

1

900

2

None

Products

Refining

Foods

100

__

_

None

_

Biscuit

National

Dairy

Standard

None

Products..!

Brands

United Fruit

_

_

_

9,300

_

_

None

_

6,900

_

Wilson and Co._
Cuban Atlantic

_

_

None

_

Sugar_

26,700

_

None

Dresser

Acme

«►
<►

Aluminium,

10,200

Aluminum

3(3)

'•«:

•

<►

City....

State........




t

1,730

American

1,300

___

___

1

None
1

1,600

Consolidated Mining & Smelting

__

New

None

2(1)

3(2)

2(1)

None

None

17,400

i Kansas Power and

4(1)

84,071

Long Island Lighting 14

None

None

2

93,000

Louisville Gas & Electric___

None

None

Power

Southern

and

Light

_

Middle

5(3)

9,120

7,500

Jersey Zinc

Kennecott Copper
West Kentucky Coal

Utilities

40.000

2,000

Niagara Mohawk Power Corp.

2(1)

6,600

2

4(1)

L

2(2)

*

1
1

None

12,700

2

2(1)
None
1

None

None

;

of

Colorado.
14

21,600

2

800

2

101,100

None

None

None

Rochester Gas

-

None

None

None

None

None

None

&

Electric

Southern Co.

5,200
2,000

Utah

Power

North

None

&

Light

American

Joseph Light and Power
Virginia Electric and Power

3(1)

8,900

3(1)

10,600

/Columbia Broadcasting "A"____
/Columbia Broadcasting "B"

7,000

Paramount

10,400

Pictures

United Paramount

1

-

;

None

2,500

1(1)'

1,300

2(1)

| Atchison, Topeka

6,900

|

7,900

I Chicago, Rock Island

\ New

3

None

None

&

Pacific

York, Chicago & St. Louis

1(1)

6,500

3(3)

800

1

1,000

KD

f Southern Pacific

2,300

2(1)

None

None

Union Pacific

% Erie Railroad

20,000

-

Equipment:

None

1,000

Pacific

&

Railroad

& Santa Fe___

Chesapeake and Ohio

/tforthern

7,800 f

None

5(2)

2(2)

None

500

None

6,100

KD

4,700

None

Corp

6(3)

13,000

16,000

3

Theatres

4(1)

4

None

2

9,650

Railroads:

2(1)

None

4

8,500

Amusement:

9,900

;i

None

63,255

St.

5,000

4(2)

1

Public Serv. of New Hampshire
Public Service Electric & Gas__

f

28,000

Radio and

None

None

Edison-

't Public Service of Indiana

9,700

7(2)

KD

8,000

None

Public Service Co.

3,560

123,000
.

2(1)

Ohio

;

25,240

v

None

Northern Indiana Public Service

300

1

None

2(1)

100

28,000

12,800

None

9,000

6(3)

5(3)

200

None

Electric System
New England Tel. & Tel.

3(2)

None

45,100

New England

2

None

None

Montana Power Co. i?

3.

South

None

None

Light

8,800

1

1,100

_

None

Utilities

5(1)

3

*

^

4(1)

None

420

1,600
800

Iowa

500

_

2(2)

2,500

1(1)

'

•

1,620
__

3(2)

2

1

12,600

3(3)

1,100

of America.

Metals 9

None

;

None

5,800

__

Ltd. 8__
Co.

700

2(1)

2(1) ■15,700
7(2)
30,093

-

1,500

None

None

_

Anaconda Copper
Cerro de Pasco Copper

2

9,400

27,000

None

Florida Power Corp
Florida Power and Light
General Public Utilities

KD

___

Morse 7

Wheeler

34,870

<►

Consolidated Edison of N. Y
Consumers Power 14

48,768

25,000

5(1)

Fairbanks
Foster

14(3)
4

Southwest Corp
Central Illinois Public Service

Delaware

None

Metals and Mining:

<►

Light

Central and

23,500
\

and

;

6

None

.t••••••••••>•••••••• <

Address

None

Power

,

None

Industries

National

3(1)

Name

None

None

2

Investment Dealer
<►

<►

None

None

Carolina

None

__

«►

2

Tel

12,000

8(3)

None

Co.

Axe-Houghton Fund B

Prospectus.

2,000
None

&

Brooklyn Union Gas

2

None

Machinery and Industrial Equipment:
2(1)
Bullard Co.
1,300

a

2(1)

12,000

2 1

None

Gentlemea:

6(1)

4,500

Petroleum

American Tel.

None

None

Axe-Houghton Fund A

<►

14,100

Petroleum

Atlantic City Electric

3(1)

6,500

7(3)

Ave., New York 36, N.Y.

3(2)

Phillips
Warren

6,900

10(1)

None

Surety

U. S. & Foreign Securities

2,600

3

or

55,600

Oil

2(2)

National City Bank of N. Y.___

Borden

3(1)

from

6(1)

Louisiana Land & Exploration

1,100

2(1)

10,400

21,000

3(2)

Income Foundation Fund

6(1)

47,300

Gulf

2,000

l*(l)

None

Marine Midland

3

Republic Investors Fund

4(2)

Service

5(2)

1

Food Products:

2(1)

Refining

3(1)

Public Utilities:

1

1,000

Chase National Bank
Chemical Bank and Trust
C. I. T. Financial Corp
Commercial Credit Co.____
Continental 111. Nat. Bank & Tr.
First National Bank of Chicago 6
Jefferson Stand. Life Ins. Co.__

4,700

None

7,300

None

1,500

Associates Investment Co
Bank of Manhattan Co

2(2)

None

2

None

6,500
2,100
13,400
7,100
1,100
1,600
.13,000
11,600
None

__!

2(1)

American

None

9,120

None

None

Financial, Banking and Insurance:

•

None

Oil

16,975

Cities

18,100

3(2)

•t

•

KD

(sub-

ctfs.)

Atlantic

500

4(2)

Tr.

None

"

None

•

•

3,100

Land

2

4(1)

68,200

Amerada Petroleum

-

None

•>

2(2)

me

6,500

1(1)

6

2(1)

Please send

Tide Water Associated

2(1)

3

730 Fifth

6,500

sh.

HI)
None

3,000

Ohio i*

of

2(2)

11,700
19,300
18,000
4,600
6,800

6

Oil

Pacific

2

.None

7,800

^___

Texas

5(2)

4

your

Standard

None

__

Vacuum

3,300

7,900

6(2)

on request

15,900

None

None

None

2(2)

3(1)

2

Prospectus

Socony

3(1)

Abbott Laboratories
Colgate-Palmolive-Peet5

(Del.)

Sinclair Oil

28,500

1

American Can

•

ml

•

9

4(1)

3,100

15,000

6(2)

3(1)

None

1,500

4 '

None

•

• • •

Dreyfus & Co.
Broadway, New York

50

9 9

Signal Oil and Gas "A" *3

_____

1,500
Oil

2

None

None

Shell Oil

4,630

None

2(1)

•
#

•

9

9 9

9

5(1)

10,900

_

3,700
1,200

——

6,500

7

Motorola

•

•

•
•

•

or

Powder

Newport Industries

None

None

9(1)

None

Oil

4(1)

None

None

Chemical

3

5,100

MM

9

9 9
9

9

•

9

9 9 9

9

dealer

4

None

Chemical—

&

3(1)

Seaboard

3(2)

4(1)

"A"_____

MidrContinent Petroleum

103,600

•

6,600

Calif.

5,300

9(3)

•

•

(Del.)

of

Pure

None

8(3)

Oil

Oil

800

None

•

15,550

6,700

3,500

•

Paper

5

2

•

None

Petroleum:

3

3(1)

•

•

9

Hercules

None.

10,513

»

•

•

•

International

2,600

e

•

•
•

•

15,500

General Electric
McGraw Electric

15,200

• •

♦ •

9

9
9

9 9 9

9

be

23,000
10,600
5,400

6(1)

•

•

•

information may
obtained from

9 9 9

9

9

•

i

•

•

containing descriptive

9

9

1,300

Corp.

Rayonier

2

1(1)

Electrical Equipment:

«
•

•

9

9

9

9

4

2

•

•

•

•

6,000
22,000

♦ •

•

•

9

9

•

•

• ♦ •

•

9 9

9

9

fund

9

9
9

9

•

♦

9 9

3(3)

» •
♦

9

14,300

18,115

•

•

• • •

9 9

9

Hancock

it

•

t

•

•
•

2(1)
7

•

•

•

*

9 9

9

•

investment

9

9 9

0 9 9

•

•

9 9

9 9

9

•

t

9 9 9
9

«

•

9

9

•

• •

9

9

9 9

a

9

9

9

9

•

•

•

mutual

9

9 9 9

9

•

•

#

9

•

•

•

9

9

9

Fund

9

9 9

9

Continental

3,200

Drug Products:

• •

•

•

5(1)

•

•

•

9

4,700

2(1)

•

•

•
•

•

9 9

9

9

•

•

None

2(2)
4

•

•

None

5(1)

11,320

American Agricultural

Containers and

•

•

•
•

9

9

9

9

#

9

9
9

•

#

9

Marathon

2(2)

2

3(1)

2

9 9 9

9 9 9 9

None
None

6(1)

2

» e

•

0 9 9 9

1,200
None

None

2(1)

Chemical

None

None

5,000

Union Carbide

None

•

•

9 9

9

9

19,700

None

99

9

Mathieson

'None

Avf
9 9 9 9

9.800

17,100

1
2

Crown-Zellerbach

3(2)

—

1,120
16,500

Dixie Cup 12

None

None

3(1)

•

•••#•##♦•♦•#•# • #

•

•

•••

6,600
24,000

None

Kodak 4

2(1)

Underwood Corp.

None
16,400
16,900

Chemicals

Eastman

3(2)

65,000

None

2

Dow

None
5

58,000

Addressograph-Multigraph 10
Remington Rand 11

4(2)

Air Reduction

_

Line-

4

32,200
14,000
—-(new) 14,000

Cement

5(2)
••••••••••••••••••••••••••• • • #•

_

Transcontinental Gas Pipe

9,700

Paper and Printing:

Chemicals:

President

February 5,1952

None
_

1

None

None

Cement--

Portland

Star

None

None

Ltd. 16

Electric-

7

4(3)

3

(old) 3,000

Tripp

&

None

13,290

Mississippi River Fuel

None

None

Company

None

1

Chester D.

Crane

None

record

Gas

1

None

Line

Transmission

Leaseholds,

American

1,500

Gas

500
None

_'___

Office Equipment:

8,100

Georgia-Pacific Plywood
Affiliated Gas Equipment

None

February 15,-1952.

Western

Gas_

2

None

Canada Dry Ginger Ale
Distillers Corp.-Seagrams

None

payable February 27, 1952
to

None

400

1

share from investment income,

55,000

Natural

3(3)

3,400

Aircraft

Douglas

Building Construction and Equipment:
865
American Seating 1

3(2)

Electronics Fund, Inc. have de¬

Paso

Tennessee

175
•

4(1)

Quarterly Dividend

El

80,657

2

None

Beverages*
2

14,900

None

5(4)

None

Columbia Gas System 15

11(2)

1

Aviation:

2

97,163
22,000

5(2)

3(1)

3(2)

2

—

_____

Auto and Auto Parts:

4(1)

13 th

Trusts

Natural Gas:

Agricultural Equipment:

1952 to
of Janu¬

Shares

3

ary

No. of

Shares

1

_

„

%General Amer. Transportation

6,000

3(2)

Number 5088

Volume 175

.

The Commercial and Financial Chronicle

.

.

(591)

Sold-

—Bought—
No. of

Trusts

of

No. of

Shares

Continued

Allied

16.800

12,600

3(1)

Stores
Auto

Western

4,200

12,500

Funds Accelerate Utilities

18,700

Federated

None
—~-sap

None

None

Supply

Woolworth

None

in three

5(1)

two

Stores^: 17,600

Department

29

page

Trusts

Trade:

Retail

from

No. of

Shares

Electric and Power

lightened

was

portfolios and there

were

sales of St. Joseph Light and
Power.

Rubber and Tires:
7

10,200

4(1)

12,800

Goodrich
Goodyear
United

None

None

chemical with the bulls in marked

None

its leadership among
popular issues of this
group during the previous quar¬
terly period. Six portfolio addi¬

contrast

the

8,000

7

—1J

Allegheny Ludlum
Bethlehem

26,900

None

Refractories 18

General

1

500

Steel

the favorite

was

2(1)

Steels:
2

Chemicals

Union Carbide

6(3)

900

Rubber

\

4

23,500
9,800

—

States

None

None

to

least

tions

5

525

4

15,800

National

Steel

3,000

1

totaled 19.700 shares.

5(1)

24,700

Republic Steel

6,000

2(1)

of

6(1)

36,100

United

4,000

3(1)

3,700

Steel

States

and

Textiles:

15,800
1,600
10,900
25,600

5

4(2)
3(1)

Rob bins Mills
J.

37,000

2(1)

American Viscose

United

Cluett Peabody
P.

2

1,500

None

None

_

KD
2(2)

8,100
2^ 5,200

Stevens

Merchants

and

Mfgrs.__

Tobaccos:

5(1)

19,300

American

4(1)

33,500

Liggett

4

4,050

Philip

Tobacco

and

1

2,000
None

None

None

Myers___

Morris

None

Balance

''.•

Purchases and

!:,,,
*

liked
of

five

by

which

managements,

made

Sold

of

Chemical
tries

and

Transactions
in

ous

itial

commitments

in

two

port¬

sold

and

opinion

Seven

shares

contrasted

totaling

Chemical

about

was

vided.

Indus¬ panies; there

with

bought

di¬

cific and Nickel Plate.
total

Purchasers

Railroads

favored

Chesapeake

Ohio in the carrier section

and

managements

holdings and

as

increased

been

Although

fairly

divided

well

had

opinion

during

the

was

purchases made at that time
five times that acquired dur¬

solely

due

to

Investment

Total

Matched

2i/2%

stock

totaling approximately 2,-

900

dividend,

but

shares, resulted from

five

manage¬

7,800

comparing
Con¬

third.

like number made

a

two

were

former

selling was confined to
the stock of Erie, a total of 20,000
shares being eliminated from two
portfolios
and
decreased
in
a
Food

initial commitments totaling 6,900

holdings

Dow

these

centrated

third

the

the

of

matched,

with 7,900 of Nickel Plate.
The

the

in

of

Volume of

each

of

almost

shares

16,800.

each

purchases

stocks

sales

Also

balance by three man¬
were
Union Pa¬

on

agements

12,000

six

two offsetting

but

evenly

purchases of

were

sales in each of these issues.

numer¬

folios and additions to two others.
increases

the only rails to be

balance both currently

month

balance.

on

more

were

Monsanto

shares.

in¬

Newport

also

were

Selling of this issue had appar¬
ently dried up completely. Neither
was
there any liquidation in Air
represented

Chemical

acquired by three trusts with

three

which

Mathieson

on

during the previous threeperiod.
Five
trusts
ac¬
no
liquidation. Hercules Powder quired 12,800 shares of the former
was least liked in this
group, four and 7,900 shares of the latter car¬
funds disposing of a total of 10,900 rier.
Southern Pacific and Santa
shares.
American
Agricultural Fe were each bought by four com¬

were

two

purchases.

new

shares

Buying

were

quarter, volume

of the

ing the present period under re¬
view.
The
next
most
popular

Issues

Popular

Strong popularity for the food
stocks during the current period
indicated

was

by
purchases

over-all

United

sales.
to

sue

on

thai

only is¬

balance

Continued

issues, Northern Pacific and Rock

fact

five times

Fruit, the

sold

be

the
were

on

during

32

page

Companies:

Open-End

Balanced Funds
Stock

Securities 61

Bought

.

Chemical, also sold on
balance during the previous three
months of the year, was currently

of

Companies

■

and

others

Portfolio

Sales

"

The volume

offsetting sales was only
shares. International Min¬

purchases;
three
sales Island,
equaled
10,513
shares.
17,100 bought

Eleven

SUMMARY

;•..

initial commitment

ment's

Reduction

1

59,600

one

five

erals

7(1)

31

12

Closed-End

1

7

20

18

__

Funds

6

5

29

0

6

6

12

30

13

18

Mm

Companies

Ttfphono-

WOtTH 4-6009

COHAUPT

Cab,.Addr.a«:

Totals—All

Companies.-

:V

FOOTNOTES
1

660

2

Three-for-one

3

3,361%

4

Acquisitions result

shares

received

as

split-up

5%

stock
listed

not

shares represent 2%%
from

10%

5

4,490 shares declared

6

1,580 shares represent 20%

7
8
9

16,700

11,980

shares
shares

Additions

1,221

11

3,125 shares
10,000

13

2,810

14

Purchased

than

represent

from

in

15

38,813 shares
Part

received

17

Part

received
shares

part

5%

stock

shares

acquired
in

stock

3?5

from

COMMODITY

capital declaration.

5%

as

as

5%

CHICAGO

1615

EXCHAN^-

BOARD OF

for

old

from

Basis:

securities

one-for-ten old shares.

in

Bond

Electric

capital
and

PITKIN AVE.

revamping.

Dear

Mr.

MutualiFu
AT ' '

A

INDUSTRY
Priced at

♦
9

«

9

9

9

9
9

9

9

9

9,
9

9

9

9

1, I952

special problem.

"But" personal mis-

Your

^^^Unediate earning

with
gionary work is costly.

stage.

the two

of

objectives be

belie^'*efn*

Haupt & Co.

power may be vital,

contractual

the

accumulation_ofmu^
9
9

—'

i

.

hundred. "

OI the

""

^

"""

103% of net asset value.

inc.

Prospectus from

your

dealer

when you

or

sell

contractual plana^needs is future

ALLEN ASSOCIATES

28 EAST JACKSON BOULEVARD—CHICAGO A,

ILLINOIS
ately.

This enhances

:>

outright

sale of

.

_

Contractual plans are

INVESTMENT FUNDS

your earning y

clientele.

your

not a

Edition;!

substitute

mutualfun ■ ar

^^ ^

,.

proBpect»

anddients

^ oduc^which enables you to make a good living from

MUTUAL

pr

very

beginning.

.

James

STOCK FUND
Haupt

SELECTIVE FUND

Brantgan,

t;:

*

ffiSKS. has enabled the Mutual *£££--. - ^ »
dXrtotltS:^ thesVpfr and if you are =te ^
C°-

FACE-AMOUNT CERTIFICATE COMPANY

J

■

SYNDICATE OF AMERICA
i

.

.4

☆

m

Prospectuses of these companies available at offices
the national distributor and investment manager.

DIVERSIFIED SERVICES,
Established in 1 894

MINNEAPOLIS

2, MINN.

Broadway!

Sincerely yours,
1

principal cities of the United States or from




9
•

•

Salesman:

- ■

0/J

•

*

*

GROWTH

148

*

9
9

Mutual Fund

You have a

stock dividend.
63 investment companies,

dising

in

•
9

9

>«•*•*

TRADE

Share.

Ira

MUTUAL

9

>••••#
I

February

How can

HAUL AND

9

•

•

rights.

funds

SHARES,

9
♦

•

•

but purchases or sales
sponsored by one management group are treated as a unit.
For
example, the several companies sponsored by Calvin Bullock are considered as
having the weight of one manager.
Individual portfolio changes of the two
Loomis-Sales Funds are not surveyed.
covers

9

•
•

•
9

•
•

BROADWAY

•

•
9

•

dividend in stock.

distribution

survey

9

BROOKLYN

dividend.

•

•
•

ifIBIS
IaIt

split-up.

distribution.

through rights.

exchange

4'Nf
I

declaration.

through

received

NOTE—This

of

noun.-" ">,r

/'le rubers

stock dividend.

stock
5%

M

stock dividend.

10%

as

Co

'Haupt &

1Ka\

distribution.
dividend.

capital

two-for-one

in

200

3%

table.

stock

shares result from two-for-one split-up.
shares

16

475

received

shares from

12

18

received

other

10

5%

as

dividend.
in

INC.

Ira

Haupt & Co.

.

9

9

9

•
»

•

I

I

32

The Commercial and Financial Chronicle

(592)

Continued

of

ance

from page 31

the

purchases

nounced

NATURAL RESOURCES

FUND, INC.

^

the

the most

after

popular issue in this in¬

allowing for shares acquired

through

folio additions and three new ac¬

Three

13,600 shares.
managements com¬

totaled

other

pletely eliminated the stock from
their

holdings.

General

as

Old favorites such
Foods,
Standard
Dairy Prod¬

Brands and National
ucts

making purchases of each.

There

was

tional

Dairy.

fining

and

wise

trusts.

in

made

cuit

WHitehall 4-6120

N Y 1-3125

commitments

Borden

managements.

totaling

with

favor

found

Only

balance

on

issue

added

was

the

lone, block

of

1,500

General

sold.

CLARK

FUND, Inc.

tions

upon

approximated

panies

shares.

liked

three

as

original

STEVENS
&

CLARK

total

and

funds

purchases.

acquisitions,

added

others

two

however,

liked

of

by

COMMON

number

S T O C K

third quarter of the year. Another
fund currently eliminated the is¬
from

sue

FUND, Inc.
at

Prospectus
1
or

WALL

on

Request

ST., NEW YORK 5

10 POST OFFICE

BOSTON 9,

SQUARE

portfolio.

Three

each

Graw

and
Motorola;
offsetting liquida¬

Electric
was

no

tion in either stock.

bought

Mc-

Westinghouse

the

only company in the
group to be sold on balance, five
trusts
lightening
holdings
and
was

Net Asset Values

its

managements
there

Available

making purchases in the

three

others completely eliminat¬

ing shares from their portfolios.
Selling volume of 10,400 shares
was

partially offset

by

six

pur¬

chases amounting to 6,800 shares.

stocks

The

Natural

Although,

also

issue

in

Seven

had

the

Gas

by
Bethlehem

of

been

by

issues

added

managements

a

Stevens
to

chases

almost

was

as

six trusts acquir¬
ing 36,100 shares. However, off¬
setting liquidation was somewhat
regarded,

heavier

in

than

Bethlehem,

as

three

funds

stock.

Republic Steel also shared

in

disposed

their

of

the popularity of this group as

five

investment

shares

24,700
Two

other

added

managers

their

to

companies

National

by four

Steel

trusts

holdings.
sold 6,000
was

United

top favorite in

Merchants

and

was

the third

was

sale of

59,600 shares

Manufac¬

also, liked

made by
Investors
Trust

Massachusetts

was

which still retained

150,000 shares

at the end of the year.

Two

of

Cluett

four

in

funds

and

the

Chrysler

auto

quarter

also

in

purchasing

in

the

pre¬

vious three-month period, the bal-

-

--«■■■■■■■■■■■■■■■■■■■■■■■■■

naaiiaaaaaaaaaaaaaaaa

laaaaaaaaaaaaaaaaaaa

mUNGTON

number of trusts

adding 17,-

000

shares of Chrysler.
In the
third quarter of the year Chrysler
also had been bought on balance,

although Motors

Studebaker,
2,000

sold.

Opin¬
almost evenly divided on

ion was

was

two

acquitions

offsetting a single
sale of 2,500. Timken was favored

the parts
companies

three

chases,

manufacturers,
making
pur¬

'■aaaaaaaaaaaaaaaaa

aaaaaaaaaaaaaiaaaa

BBBaaaaaiaaaaiBBaBB

The

in

opinion

Bankers

on

and the

acquisitions

^hree

the

Boston

finance

National

First

in

resulted

companies,

C.I.T.

Finan¬

cial Corporation was well bought,

six funds
of

adding 13,400 shares, two

which

represented

mitments.
total

cial

Four

added

two

were

these

sales of each of

leading finance companies.

Associates
smaller

Investment

factor

also

in

Co.,

Despite

the

by

selling of

the

earlier

balance
trusts

in

and

Eastern

Seligman
this

group,

article,

initial

fifth

a

that

favored

was

during the period.

made

on

Four

commitments

added

to

holdings

total of J2,700 shares.

a

Other trusts

Funds.

active

in

Airlines

ting

the

vision

stock

that

so

only

shares.

A

also

on

purchased by two man¬

Parke

Davis

the

was

favorite

the drug issues, four

panies

received

5% dividend, four
Colgate-Palmolivematched lour sales, two of
latter of which represented
as

purchases
Peet

the

a

of

portfolio eliminations.
ume

heavier

was

side of

the market.

acquisitions

Lilly

"B"

while

two

made of

Share vol¬
the

on

selling

Three

made

initial

of

Ely
totaling 23,000 shares
purchases each were
were

Sterling Drug and Abbot

Laboratories.
The

Paper Issues

Zellerbach
the

of

was

the fea¬

stocks,

paper

funds.

sales

was

on

Douglas

of

companies,

United

Rayonier
funds

78,700
di¬

a

sold

five

managements
sue

that

stocks

stocks,
200

any

trusts

seven

shares to

the

issue

United

from

States

their

holdings.

Rubber

The

the

The

Tobaccos
tobaccos

and

bank

had

there

not

trust transactions dur¬
quarter,

.was

was

A

bought.

Liquors
generally

were

19,300 shares of Ameri¬

Tobacco

five

City

newly acquired by three funds.

managements

were

acquired by
with one off¬

setting sale. Four funds also each
purchased Liggett and Myers and
Philip
vided

Morris.

sellers
of

Opinion

was

buyers.

Liquor stocks showed

little activity with Distillers-Sea¬
grams

an

unpopular

issue

United
SCIENCE
Fund

I
Prospectus from

your

Investment Dealer

WADDELL &

40 Wall Street»

1012 Baltimore Avenue

New York 5, N. Y.

1




REED, INC.

Principal Underwriters

Philadelphia 2, Pa.
wmm

a

mmmmmmm

I

or

as

A

I

8

di¬

Reynolds, however, three
offsetting a like number

on

!

I

also

was

lightened.

liked by investment
The Bank of Manhat¬

11,000 shares

very

three companies lightening hold¬
ings and three others eliminating

Bought

previous

rubber

well
adding 10,portfolios; four sales
was

equaled 23,500 shares. Goodyear
by contrast was sold on balance,

Company

York

paralleled

Among

can

Co., in which

the

purchases
sales.

Goodrich

bought,

were

managers.

ing

New

the

of

favored.

Finance

Stocks
Several

six

of

ume

by four

three eliminating

and

sold 15,550 shares,
completely eliminating the is¬
from its portfolio. Share vol¬

one

stock from their portfolios.
Bank

Marathon Corporation

Selling was concentrated
International
Paper as nine

on

Among
by

also liked by three

was

and

by two.

Aircraft

balance
was

al¬

was

likewise

prospectus from your investment dealer

City

four

buying 6,600 shares, one of
which represented a new holding.

Delaware Fund

Address.

com¬

adding

10,600 shares to
present holdings. Excluding shares

American

of

United Airlines.

favored

was

were

opinion

three

There

manufacturers

i

Name.

a

the .industry,

agements.

bBaaaaaaaaaaaaaa

.

a

7,100 shares of Commer¬
Credit to existing holdings.

There

was

com¬

new

trusts

of

BMaaaaaaaaaaaaaaa

Prospectus to:

from

part

Among the

■iBBBBBIBMBIBBBMB

■■■■■■■■■■a■■■■■■■■

of

Bank

trusts

■BBiaaaaaaaaaaaaaaaBH
■a a aaaaaaaaaaaaaaaaa

MMEMBMRBMB&Suifl

pur¬

Irving and

the exercise of rights.

ture

waaaaaaaaaaiaaaaaaaaa

■■paaij

■MMmBBaMBRMaril

GENTLEMEN:

a

stock

Single

of

JBBBBBIBIBBBIBBBBBB

paaaaaBiaaaaaaaa

Please send

divided

was

Crown

Airlines

com¬

while

Trust,

Guaranty.
of

made

were

York

of which represented

one

uBiaaaaaaBBBBBnaaaaa

'

:

New

initial commitment.

an

■aaaaaaaaaaaaaaaaaaaa

New York 5, N. Y.

of

shares

among

Marine Midland.

and

■aaaaaaaaaaaaaaaaaaai

mnmina aaaaaa

•

18,500

shares of the former stock and the

been

Textiles

favored

biaaaaaaaaaaaaaaaaaa

52 Wall Street

group,

Two

each

among

Motors

favored

initial commitment.

bought
shares
in
Chase, Chemical Bank and Trust

Pea body.

General

a

acquired by two

MBiamwinwiiHaM

■■■■■■■■■■at

man¬

agements also bought 1,600 shares

tan

Activity
While

Coupon Below

Delaware Fund Distributors, he.

Pur¬

by three
trusts whose acquisitions totaled
37,000 shares. One large portfolio

and .Alle¬

managements.

jgiBIB—BB—■■

■linBBBIBBBBBBBIli

held.

25,600 shares, off¬
by sales of 5,200 shares.

turers

well-

gfBBBBBBBBB ■IIW—WWMI—MB—■—BBn-MWIIBMHIWHaMIIIBIIIM
BMiBBBBBBBBBBBB«aa«wmMBwaamiaawBMWwaBaww»a»m

BIBMBB—■■■■■■■■»■—■■!

already

added

most
evenly divided with four
purchases of 42,000 shares offset¬

well

MpaaaaaaaaBBBBaaaaaaaa

to

others

United States Steel

iilMiB8!l|BBBBBWMMMa—■—BIBB»»»"W1BBB1BBBBWBBMBBBBBBBBIBBBM

send

two

totaled

set in part

m

Prospectus

while

shares

total of

For

managements

26,900 shares to existing
holdings while there was only
one relatively light portfolio sale.

managers

differed from those in the earlier

Two

man

of

total

currently

investment

portfolio,

made initial commitments in J. P.

second
management
lightened
holdings in addition to the Selig¬

of the year,

individual

September quarter. Five com¬
added
10,900
shares
to
holdings while a sixth eliminated
a
block of 8,100 shares from its

quarter.

in the natural gas group approxi¬
mated those of the previous quar¬

favored

the

panies

making

gheny Ludlum, which had been

ter,

Robbins Mills, top favorite of

was

favorite

the

previous

bought

Group

the

for

noted earlier in
this survey, over-all transactions
as

chases

shares;

transport company

highlighted

was

popularity

which

shares.

MASSACHUSETTS

offsetting
sales of two others totaled 1,500.
Next popular issue in this group

seven

15,800

Airlines

enthusiasm

Increased

the

two

Sales equaled

was

steel

by

Mis¬

Enthusiasm for Steels

other

made

panies

noted

Sylvania Electric was
four trusts, the same

sales

companies.

Electric.

58,000 shares.

only one-quarter of that resulting
from

in

shares

9,700

creased in another.

to

made

Volume

man¬

commit¬

sissippi
River
Fuel
was
com¬
pletely eliminated from two port¬
folios
and
holdings
were
de¬

also

was

totaling

half

-

Five

lightened

also

American Gas and

lightened holdings totaling

portfolios

in¬

the

one

each.

dollars

ments

manage¬

2,600

SCUDDER

General

by

was

ments

Philco

the

vestments of the two former com¬

million

many

in

Value of

Service.

agements

as

reduction

holding .of this stock

opinion had been divided
previous quarter, was cur¬
rently the next most popular is¬
sue
as
six trusts acquired 15,200
Half

the

and

in the

shares.

States and
Securities Corpora¬

United

and

Public

shares

Electric,

portfolios of United States and

One

initial commitments.

sented

the

International

of 1951.
Eight funds bought a total of 19,300 shares, three of which repre¬

an

ac¬

this

of Trans¬
Line from

same number of
managements
purchased 21,000 shares of Nation¬
City, one of which represented

al

the

In

on

quar¬

The

was

same

which

&

taken

elimination
Gas Pipe

Foreign

both

during

second and third quarters

STEVENS

action

continental

Corporation

SCUDDER

portfolios.

pipe line company was the

complete

.

The radio and electrical equip¬
ment issues were paced by Radio
as

Gas

in

pro¬

funds

were

latter

Well-Bought

two

to

to

contrast

Again

Natural

while Tennessee Gas Transmission

shares.
RCA

'5'

number of funds

same

Republic

bought

be

Cuban Atlan¬

was

The

trusts.

two

to

Sugar, two sales totaling 26,-

700

pur¬

new

portfolio holdings.
There was no
liquidation in this issue. Neither
was there any
selling in El Paso
Natural
Gas,
22,000
shares
of
which
were
acquired b,y three

initial

62 Wall Street, New York 5, N. Y.

tic

making

Co. like¬

4,700 shares, while National Bis¬

sold

represented initial commitments.
lone portfolio sale equaled
500 shares. Also well bought was
Panhandle Eastern Pipe Line, two
One

chases and three others adding to

Wilson and

Two

also

this

of

purchases were only in part in¬
duced by the incentive offered by
the rights.
Two of these latter

managements

Na¬

of

bought 97,163 shares
issue and four of these

Corn Products Re¬

IFRANK L. VALENTA & CO., INC.

Teletype

sale

lone

one

each acquired by three

were

were

Telephone

three

well-liked,

also

were

funds

request

rights.

of

Eleven trusts

quisitions

on

exercise

the

dustry among the trusts. Four port¬

more

Viscose

stock,

quiring

System

sales

over
was

during the current

American

favorite

of the top favorites, even

one

was

Gas

Columbia

period.

previous quarterly period, cur¬

rently shifted in status to become

Prospectus

ter.

Foads Accelerate Utilities Baying

issues

textile

Thursday, February 7, 1952

...

Kansas City 6, Missouri

Branches From Coast to Coast
mmmmmtSSmm

Volume 175

Number 5088

...

The Commercial and Financial Chronicle

Prospectus describing Company and terms of offer¬
ing

may

be-obtained from Investment Dedlers or
Building, San Francisco 4, California

2500 Russ

MUTUAL FUND

BOSTON

of

Prospectus from

your

Inc.

dealer

or

Investment Manager and Underwriter

RUSSELL, BERG & COMPANY
19

Congress Street, Boston, Mass.

Broad Street

Investing

Corporation
A DIVflfSIFICD

INVESTMENT COMPANY

J BROAD STREET SALES CORP.
2 65 Broadway, New York 6, N. Y.
5

Please

«

company.

5

send

me

prospectus

above

on

Name

2 Address

jlue Ridge Mutual Fund, Inc.

PROSPECTUS

UPON

REQUEST

1205 Lincoln Alliance Bank

Bldg.

Rochester 4, N. Y., Tel. BAker 8590
Neither Eastman Kodak
Dv Pont

Company has

Company nor The
port in this Plan.

any

SOVEREIGN INVESTORS, INC
•

Prospectus
your

on

A

investment dealer

Prospectus

or

Research-Distributing
Corporation

on

request

George A. Bailey & Co.

Three Join Paine, Webber
(Special

.

120

MUTUAL INVESTMENT FUND

request from

WOrth 4-6731

-




NY 1-635

Financial

LOS
845 Land Title

Teletype

The

Chronicle)

GENERAL DISTRIBUTOR

Broadway, New York 5, N. Y.

Telephone

to

Bldg.

*

Philadelphia 10, Pa.

V.

ANGELES, Calif.—Robert
Ralph Kempner, and
joined the
of Paine, Webber, Jackson

Carey,

&

Curtis, 626 South Spring Street,
Carey was formerly witf*
Bateman,
Eichler &
Co.; Mr.

Mr.

Kempner

with

E.

F.

Hutton Ss

John P. Sheather have

Company, and Mr, Sheather

staff

Francis I. du Pont & Co.

wltfe

34

The Commercial and Financial Chronicle

(594)

of instructors

Continued from first page

of these

use

We See It

As

If

by 'foreign aid' he means gifts to
foreigners by our government, I will go further than the
Senator; I will say that 'foreign aid' should be eliminated
entirely.
"But
Senator

'foreign aid*

generally use the term, and as
Connally specifically used it, is something quite
In

different.

fact,

as we

it is

an

unfortunate and

inaccurate

phrase. 'Foreign' denotes something alien to us; 'aid' de¬
notes charity.
What we call 'foreign aid' is neither of
these; it is not alien to us and it is a vital part of our basic

It is not aid at all; it is insurance and enter¬
Instead of speaking of 'foreign aid' we should be
speaking of 'world investment.'
program.

prise.

"I

profoundly convinced that there are occasions
in which the interests of the American people are best
served by investing some of our dollars abroad.
Such
investments should be made not in terms of charity but
because they will promote our prosperity by promoting
world prosperity; or because they will increase our se¬
curity by increasing world security; or because a few
^dollars spent wisely now will save us many dollars in the
future. This is not philanthropy; it is hard-headed, free
enterprise."
am

"Investment"
If the term "aid"
which the

as

we

course,

there

likely to be infinitely more so. Of
occasions when real investment of Ameri¬

are

dollars abroad is indicated

can

by real investment con¬
siderations. There would be more of them if governmental
policy both at home and abroad were more conducive to
such ventures, and there should be more of them.

But

from

much better

qualified to know

of funds

are

to determine what is

or

the
it

the

The

the

not

be undertaken

by private enterprise, they can be regarded
only in a highly specialized sense. At their
very best they are to be regarded as investments only in
the sense that fire departments, or police departments of
cities or other political divisions
may be so regarded; as
the building of navies, air fleets, and armies
together with
their required equipments can be so
denominated; as the
as

investments

provision for health protection and education at home
may be so labeled.

will

but

carefully note the qualifying phrase,

"at their very

t

best." Gifts of food in times of dire emer¬
gency may win a favorable position in the minds of primi¬
tive peoples—at least for a time. It is far less certain that
modern improvements and other
large scale developments
to protect peoples from future
famines, or from future
plagues or from poverty, would have the same conse¬

either short-term or long-term. Most of the pro¬
for such purposes would inevitably
require drastic changes in the habits and modes of life of
millions—in some instances, hundreds of millions—of
people with their own traditions, their own superstitions,
their own suspicions, and their own inertias.

quences

grams

necessary

If

persistent reports are to be accepted even at half
face value, the Kremlin is still
desperately trying to alter
the basic habits of the
peasants in agricultural areas for
the purpose

of assuring larger and

duction of food.
success

has

It

has

attended

more

dependable

beeu able to succeed, so far

its

ready for assignment with
refresher

of

a

training

and

physical conditioning; (4) by
reason
of the foregoing to free

Very soon after the passage of
Act the President appointed
the
National
Security Training

regular forces more immediately

Commission

tunity

three
a a xv. x

James

members—

at

foreign land in the world—or

home.

effective
in

Is there
any one so naive

tries

or

in

as

to

suppose

that

introduction of modern agricultural
techniques

India, for example,

activities

us

for that matter, even

or

any

sort of modern industrial

W.

and

was

,.«aulu«u

Wadsworth,

of

is

tions

~

a

significant scale in

regions in Asia, would be

viding machinery, equipment and




any

of

a mere

a

a

dozen

coun¬

matter of pro¬

reasonable size corps

the

and

instantly

ready-

and

Training Corps will get

trainors

800,000

for

military

trainees

departments

also

Representative
from
that
State.
The other Commissioners
and

William L. Clayton, of Texas,

are

Karl

T.

Compton,

1"

...

'-^.'1

V

1

U

McLain.

in

.1

!

.•

i.l_

•

SL'

their

of

pursuance

••

Capitol
now

Hill

October

last

and

before the two Committees

Armed Services. It will doubt-

on

less

be used

as

model for such

a

legislation on UMT as may be
brought before the present "session
of Congress.
The central feature

gram is based on
Universal

of the pro-

section of the

a

Military

Training

and
provides, in
rather
obscure
language,
that
after
passage
of
tne necessary
Service

which

Act

legislation,

all

the

American

boys

the Armed

for

of

ages

Forces, shall be liable

induction

into

National

the

Security Training Corps

here-

as

inafter established for initial mili-

tary training for

period

a

months."

of

six

to

qualifica--

permit

an

or-

to American life its
qualities,
and
their
importance tor the nation in

,

The

present

that all

plan

youths

the

age

the

physical

18

of

inducted

into

Volunteers

to

seems

to register

are

be

at

after passing
examination, to be
and,

the

at

corps

18 V2.

start at 17, after
high school graduation and by
permission of their parents or
may

guardians,

During the six months'

period

training

of

they

will

be

under the general and continuing

of

supervision

After this
on

may

Commission.

period they
for

reserve

undergo
as

the

such

7V2

additional

to

be

and

are

years

to

training

be prescribed, or be called

In

lists

basic objectives:

existence

of

establishment

the

the

following

"(1) to insure the

an

active

which

training
would sub-

stantially reduce the necessity of
drawing upon regular units in
time of
ize

the

mobilization; (2) to vitalNational

by

Guard

and

re-

funneling

organizations

in

into their
peacetime a

steady flow of basically trained
personnel, thus reducing the time
required for these components to

.

'

■

'■1

A-

■

_

Jl.

.

'

.

'

'.

i

—

in

for

UMT,

the

into

or some

National

other organization
.

...

.

wkich they will continue their
training and be war-worthy soi-

*n

diers

called

when

into

active

However, the Commisn°t clearly explained just

what is expected of trainees on
reserve.
Besides, the National
^uard doesn t want them.
;

the outlines of specific
by the military departments, the Army sugAs to

programs prepared

its 400,000

gests for
common

that supreme task^U
This long paragraph
ife
complete the case in

process

basic

for

training

trainees

one

17 weeks of
and
individual
in;

combat

and

arms

does not designated services, and common
i" 1

_

_

_

favor

_

ni; rti

f*

of

the introduction to

supporting, arguments,

We need, they say, a long-time
military policy which will provide

for swift adjustment between pe-

1 1

r<

i

7

W V»«~*

V"*

*

training, all branches;
weeks plus of specialist school

specialist

training; 6 weeks basic unit and
leadership training, and 1 week to
process out.
Then, to make up
for the short time given to special¬
ist school training, which in the

riods of acute crisis;Which demand regular Army requires 20 weeks,
large standing forces and periods the Army hopes to persuade a
of relative
calm^yyhich require small number of trainees to volsmaller standing forces plus a unteer for extended training in
large, trained and iready reserve, order to com p 1 e t e the longer
and make its might felt in the courses.
scales of world febwer.
Such a
What Army Hopes to Accomplish
policy we have nefrer had, witness
the

that

fact

weffwere unarmed

Here is

a

statement about what

accomplish

during the 1930|- and again in
1946.
"Approval :;fef UMT is, in
our judgment at once a recogni-

the

tion of these grave errors on our
part, and a partial reassurance

UMT program would be: (1) to
provide basic training in the
combat arms which will substan-

that they will ndfcffecur."
Again, the Commissioners call
attention to the menace of Com-

sayiSfc'

Army

hopes

that is worth

"The

to

quoting:

objectives

of

the

Army

tially reduce the period of training
required upon mobilization; (2) to

teach discipline, teamwork, ors|oviet Union ac- derly habits, and harmonious livtively seek to iij$pose their abso- ing in order to facilitate ready
lute authority over the rest of the adjustment to military life in the
world, the Unit^ States and all event of national emergency; (3)
free society aref? Inexorably en- to develop courage, boldness, inigaged in mortiS?'; struggle with tiative and other attributes
of
Soviet Commu$gm which will leadership; (4) to condition traincontinue until the basic conflict is ees physically to demands of life
resolved or reconciled."
For all in the field and to develop habits
of that, rather ii|cOpsistently, they conductive to enduring physical
in

leaders

envision

a

ular armed

"When
over

a

hafe been

it

operative

reasonably period of time,

program,

ing

the

redug&ion of our reg- fitness;
forego for they say:
trainee

^vigorous

assuming

and

"Because

the

of

reduction

support of the program

Commission

Guard"

week to

munism

'

"funneled

be

own

Pres-

Pi

thus

give

which

Admiral Thomas C.
Kincaid, and General Raymond S.
It IT

ing the reserve period of 7 V2 years
the members of the Corps are to

distinctive

of State;

former

in the event

individual

of

and

.

period of six months.
That means, apparently, that dur¬

(5) to provide oppor* service.
for
the development of slon has

derly utilization of#military personnel; (6) to impress upon the
youth of the country its obligation
to protect
the institutions

New

York, who has been both Senator

serves

on

for

In the
of
foreseeable

demands

urgent

present

war;

records

military

two

and

chairman

The

i,
men.

five

of

civilians

of

missiorfs

combat

for

the

into active service.

as

efforts, only by tactics which

obvioiiMy would be wholly out of the question for
any

pro-,

regular forces.

training

provide a pool of basically trained
men

Training

Security

18 and 19,
"who have not been inducted into

Resistance Certain

func¬

only be achieved if the UMT.
is closely related to an
effective
reserve
program
of
formal
schooling
extending,
in
most
cases,
beyond
the
initial

achieve combat readiness; (3) to

not

Commission

between

The reader will

a

as

from the

program

Shady Side of DMT

become law
until passed by Congress and ap¬
proved by the President.
ciple,

is

could

accomplished

the

where the

several

which

departments

battle-worthy forces,
the UMT
programs should be so conducted
as to strengthen, not weaken, the
combat capabilities of the forces
in
being."
If so, one wonders

the report the Commissioners give

ventures

be

separate

of

future

to

other

must

light

they prepared a comprehensive report which was sent

to all these

military

tions of the

home and abroad than any government
politically
and politically controlled could hope to be.
as

three

function

instructions

Now

appre¬

have advised the Commission that

wise and what is not in the form of investments both at

selected

less

or

involved, for the report reads:
"Assuming commencement of the
UMT program in- the near future,

1

ident of MIT;

owners

more

are

The

3

page

to take

Private

Navy

can

Continued

former Under-Secretary

of themselves.

the

to

point out that satisfactory results

apart from removing obstacles which government itself
has placed in the path of such ventures or permitted to
develop there, these matters can be and ought to be left
care

28%

and

den

^

minimum

word "investment" is

800,000

about

hensive about the additional bur¬

commonly understood by the invest¬

of American dollars abroad.

ment

expected

is

be

Evidently, the military depart¬

event, it is not to be mentioned in the same

any

Force

ments

of the word.

In

it

will

and its affiliated Marine Corps.

against "tyranny"? Of course, even the economic advan¬
tages of such changes would not be evident overnight, and
resistance to change would be natural. Suspicion, natural
in any event, would be fanned by native Communist
agents. If in order to "win this battle" we shall first have
to abolish hunger, misery and poverty, as the President
recently said, and do so without alienating the natives,
then we have undertaken a really stupendous task, which
may or may not turn out to be an investment in any sense

National

applied to the type of activity to
is
are rather inclined to doubt—the

Air

so

breath with what is

there

trainees, of whom 50% will be
assigned to the Army, 22% to the

Stupendous Task

one

any

operation

that

childish as to suppose that the
drastic changes in the practices and in the routine of
living among the vast hordes of India, Pakistan, Indonesia,
Malaya or Indo China would be accepted gladly by these
peoples with hearts filled with gratitude toward the
United States and with readiness to join the "free nations"

Misleading

President and these other gentlemen refer

misleading—which

there

Thursday, February 7, 1952

.

.

scale

population the

things?
A

Is

"In this first public statement upon his return to Wash¬
ington Senator Connally, Chairman of the Senate Foreign
Relations Committee, expressed the opinion that foreign
aid should be cut.

aids to teach the native

or

.

reserve

UM'fpshould permit
in th#jze of the stand-

forces,

thefeby

reducing the

pdrdens and social
la^ge regular forces

heavy financial
dangers which

involve
As

to

upon

the

safety."

trifling which the

the National Security
Training Corp ipjb.to receive, the
Act required thStfit be suggested
boys

of

carried

(5)

to

inculcate

in

the

understanding of the
world-wide responsibilities of the
United States and the reasons why
his military training is essential
to the national existence."
The programs suggested by the
Air Force, the Navy and the Marine Corps are, of course, much
more elaborate and difficult than
those of the Army, and one wonders how much of them the trainees can master in six months,
As to the costs of the whole
program, they are hard to estimate
because full implementation is not
an

ou|: fey the several
departments according to in prospect for several years, and
andptandards of the the probable extent of inflation or
Commission an<Jt subject to the deflation is unknown, and possible
approval of the^Jepretary of De- changes in pay scales, materials
fense.
When tfoer^shali be full and world conditions are also un-

and

military

the policies

■

V

'

'

'

I
Volume 175

known.

Number 5088

.

.

The Commercial and Financial Chronicle

.

For all of that the miltary
have estimated the

departments
first year s

$4,187,983,600,
tne recurring annual cost at

and
_

cost at

$2,158,/46,2U0 for

fully

a

imple-

mented program.

of

(1)

assumptions:

800,bou trainees

total

a

in the
four basic training programs; (2)
a
training period of six continuous

"

months;
head

<,3)

per year

ratio of one

a

to

person

over-

two train-

every

; ees, and (4) no dependent housing
for

trainees

pendent

and

little

very

de-

housing for the training

cadre."

War.

must

have

; been staggered by these enormous
costs, for they say:

/'The Commission wishes to
phasize

the

nature

extremely

all

of

the

consiuers

them

-magnitude

of

em-

tentative

estimates

of

and

value

only as
they indicate the general order of

the

tempted to look
the

of

that

mav

.

record our

to every

son

two trainees

.exorbitantly

high

Commission

and

appears

that/the
Congress

and
the

tain

the

.to

validity of the ratio and

achieve

costs

minimum

•

overhead

generally."

"But,

the whole

say,

for UMT is nullified by

program

Public Law 51, the very Act that

strongly

so

it—in

recommended

militarism

to

adopt

and

power

mies,

*

fully * equipped

the

overseas.

Act was operating, 19 Vz
or
20,
they would then go into 18 months'
service to equal the 24 months'

service, their training in a given
time would
be
necessarily less

UMT

effective than that of draftees

gress

service that the other
put in."
If so, UMT

der

had

men

proposes

system

us

specific

objectives

of

war

un-

Selective Service system,
would be training for the
armed forces but not in them, as
the

They

that of the Selective Service though preparing for a profession
Act, which would cause confusion which they might never practice,
if it were put into full operation They would be preparing for war
under present conditions. But, of in the abstract, not in the concourse, that will not now be done, crete, and would, therefore, lack
The proponents of UMT seem to the incentive of actual conflict.
be very sure that the boys in
por tbis reason
on

if

question will be well and basically recrujfs
trained

be

and

ready for

active

service with a minimum of addi-

though'at

bas'ic

the

first

training

might

men

raw

lacking

the

of

c|tch

S00n

other

no

up

UMT

to them

in

as

distance

our

the

past,

ene-

with

forces

armed
citizen

from

our

our

and

a

reported to

doubt

enough.
a

year,

have

that
.

six

.

said:

"I

greatly

months

is

coming close to disaster twice in
recent years.

Selective

by

which

our wars,

though

army,

all

won

•

Unquestionably,

have

we

been

posals

when
first

and

made

and

tionists

it

second

of 3 to 3.5 million

the dragon's teeth of Communism
Nazism.

and

Surely,
lesson

our

have

we

and

will

not

caught

napping again.
With
forces of 3% million men

ing

seem

only

what is needed is

serves;

in being.

What

is

quired

™a/:a °y
yea.r

service

of

two

,

mid

every

later

A

re-

be

re-

military
for

years

all'able-bodied youth before they
take their places in the industrial

through
Conthe present session,
not likely to be done

is

during

this

election

Presidential

Even Gen. J. Lawton Col-

year.

lins,

who

reported

favors
the Act, is
have said the other

to

day before the House Committee
Armed Services that universal

on

military training is important
a
long-range basis, but that

would have

on

it
immediate effect

no

on the nation's security,

There is time, therefore, for
further consideration of UMT and
alternative plans for the training
of reserves, and Congress may
well take to heart the wise words

Of General MacArthur to

Con-

a

gressional committee in May,

when

1951,

he

said:

should

"I

seriously,

(Universal

nr

make my decision."

and

gures inciuae tne costs oi mm
™ry. PQrs°nnei, major procureI1
aflcl Pr°duction, peration

^

.

„

„y

force

a

to

seems

universal

a

it

and

|ga||a<r|,ftr EIoaIoiI

(l3ll3gN6i EI6C16II

A train-

men.

provides

program

legislation

during

advise most

pro-

wars

world

possible for revolutotalitarians to sow

and

nor

after

demobilized

we

Act

universal

military
to give promise of
assuring a continuing armed force

frightfully negligent in the past, training
as

Service

for

There is really no need to rush

if I were
Military
^paA!" Training) that I would wait and
fnr
get through the emergency that
faces us now, and then on what
year or, hag resulted^ and what exigts
then, I would sum up the facts

than noth-

worse

transported

considering

ing." And on Dec. 19, 1950, President Conant, of Harvard University, wrote: "Neither the present

have

we

L J™™f

1i

long

Anything less than

.

I fear, is

W0^™ ^e*

and

equipment,
i

Rif AvLuirSo-kl CM lilt

DV ArKWriRIll lllllD

d vast exCOn~

stru/tl0n °f real property.

Tampc

PaiiawVior

T

vw

Prpci

James J. Gallagher Vice-Presi-

aent ot tne Marine Midland lrust
f°r no one knows just what per- ^ompany or New
York, izu
son'nel will be needed—what perr0|aQ(-Ya^' anT3 or.A
years prior
sonal and real property must be ™ 19ai ^e-Bresident in charge
The estimates

are quite

illusory,

,

acquired, nor what the costs °* tne hanks unamoers btreet
might be in case of inflation. Bewas. f?™
*1? n?
800,000 trainees from the same our allies we should be able to
Sldes, inasmuch as the pay of the ™e Arkwrignt Club ot the City
manpower pool.
Therefore, un- meet the present emergency and "Times" and a former naval offi- 800,000 trainees is to be only $30 0
-New York yesterday at tne
der the caption, "When Can the to carry
on
after that without cer, writing in July, 1947, went so Per month as compared with $75,organization meeting oi the new
Program
Begin"?
the Commis- peacetime conscription.
If not, far
as
to
say:
"The
Army
is f°r draftees under the Selective
oa^* ]
_
.
sion has this to say:
our young men will have to take
strongly supporting a great decep- Service system, there is likely to
u a^esJr* ^mmk, Jr., oi wn"It
is
clear
that
the
armed at least two
years
of intensive tion—a
defensive
and
obsolete be agitation for equal pay which,
iana J1** Hooper r?ns,
?; w^rS
forces are now drawing on the
military training instead of the conception of war.
Peace- H successful, would greatly inectea
Vice-President, rl. ivl.
principal of the available man- paltry six months of UMT.
time
courses — particularly
the crease the total costs.
Indeed, if ^immermann, McCampbell & Co.,
power pool, as defined by the proIn view of our dislike of mili- universal
training
plan — is
a °ue may judge by the estimates mc^ was reelected Treasurer; and
visions
of
Public Law 51
(i.e., tarism it is interesting to see that horse and buggy military policy in
military engineers of the costs C. Scott Lewis, Fairforest Finishthose men in the age groups 18V2- 0ur
military friends are trying to an atomic and missile age."
of irrigation and other public im- lnS Co^, reelected Secretary.

-years,
'for

*

of

might meet

we

drafted

armer

it impossible
anything like

peace

Prussian

Training Corps, and that, lacking

tional training, but many compe- and'in the end become
just as
tent critics have serious misgiv- g00d soldiers.
If so
the results
throughout the world. True, it ings about that.
0£ umt< would not be worth the
has been adopted by
many counIn the New York "Times" of costs incurred —the
game
not
tries, but we have thougnt that, March
30
1948,
Mr.
Bernard worth the panHlo
because
of
our
prosperity and Baruch, though favoring UMT, is
TTMT

Selective Service from

thus making

the

of

have fled
and which has had such tragic
consequences
in
Europe
and

be

18V2

time

in

from which many

learned

to

and

conscription

reserves, and when they
reached the age where the Draft

and- a system of training superimposed

staggered when asked to consent

principle, of course—for that law
19

is

one

yet have endured
the draft in time of war, we are

reduced the age of draftees under
•

issue,

assurances

As Americans who have always
been more or less suspicious of

the

to

strange

speedy

a

find.

should make every ettort to ascer:

will

and

in view of

promises, and that is not hard to

regular

costs

World

the shady side

on

glowing

However, we fcust
judgment that the jproposed ratio of one overhead per.

First

arise

demand for

urgent

danger,

.

security that into the

the

doubts

not be put down and,

be

expected.

of

sense

before

But

and

Commissioners

The

,

had

we

decision of this vital

'•These figures are based on the

following

restore the

35

(595)

to

UMT

get

and equipment of every sort rap-

life of the country."

idly

Mr. Hanson W. Baldwin, military editor of the New York

increasing

and

the

of

help

'

u

...

t

26 who

not exempt or perma-_ make

are

nently

deferred

service).

This

tenance

of

force

3V2

of

from
military
that main-

means

the

military

present

million

is

requiring
the extraction from the pool each
of

year

more

ing it at the
The

than

men

are

enter-

ot 18%."

age

military service for all available
-

the

manpower,
cannot

be

before

the

lective

that,

so

men,

for

UMT

of

lack

program

put into full operation

expiration of the Se-

Service

Act

in

the

year

plans

tries

auite " calmlv

change

a

palat-

more

by

of

names.

tain to be obsolete before the next

well give

think

ful

under any other name is as hateas ever and we will have none

and
the
resultant overemphasis on the creation of a
large semi-trained reserve might
—and probably would—hamper
the development of far more important security
measures,
an
adequate intelligence system, a
comprehensive research program,
industrial mobilization, finely
trained services of professional
soldiers, sailors, and airmen ready
f°r instant action, and capable
leaders."

of it except as a last resort.
+i^;
•

Npw York "Times" of Mav 4

because

we

thought it would
But when

us.

prospect, then, is extended

young

Elsewhere Mr.
Balwin
said: provements, one might safely
"The great expense of any such guess that the costs of UMT could
Formerly
we
used
to
discuss training
program,
its probable be twice or three times as much as
universal
conscription
in
Ger- concentration
in training large those indicated above.
many
and
other foreign
coun- numbers of men in methods cerThese astronomical figures might
their

abje

tion

called

then

peacetime

first

was

conTcripit

proposed

universal

was

military service,

universal

military training,
now it goes under the more
euphemistic and appealing title of
"National
Security
Training
and

Corps,"

which

to

it

should

be

a

"

1955,
■"

if

and

the

emergency

should continue after that the im-

plementing of the
be

program would
further postponed.

still

For all of that
•

•

the Commission

...

a

insists

that

the

Program

be

en-

great honor, and privilege to belong.
But peacetime conscription

The

question now

Baldwin

Mr.

arises

as

to

mental

-scale

a

for

program

60 000

of

the

right

sort

to

make

them

young men at an estimated cost of
r

much

$398,895,210 for the first year and

recruits when called from the reserves
to service in the armed

annual

recurring

costs

$179,-

of

291,680.
In

fact,

such

proposal

a

was

1951

to allow 60 000 bovs between

the

aees

for

six

of 17 and

19 to volunteer

competent

more

Even

forces.

submitted to Congress in October,

were up to

|if

than

their

raw

training

dat|in
it

followed

training,

to

serve

as

members

"National

of

to justify
we

^only^through the air

the sea.

in tne

o^ by

period of 72/2

years

tional

training

'Iwhen

called

to

But what

active service. Even units of the
National Guard,1 as Gen. Mark
determined Clark
has
said|
require
from
through by seven to nine mi nths to fit them
f°r active service.

hook

or

by crook.

In

The Shady Side

js

The National Security Training
Commission and other advocates
of UMT have presented their case

in

an

effective

vincing
have

way,

been

because

of

so

and

non-cof|mittal
of

Sen.

Richard

man

of

the

as

to

UM# reservists,
»

Russell,

Sedate

Armed

the
but

ChairServ-

many

carried

the

plan that promises to
menace

duties

almost

Its proponents and the allure of
the

fact, the Colli mission's report

very

conices Committee$fis more candid in
people* this respect, fo|* he is quoted by
away with it
the "U. S. News" of Feb. 1, 1952,
high standing of as saying: "Y$j could start the

that

of

save us

Communism




a

from
and

A million of half-

reservists, some soldiers
training, an excuse for re-

combat by the air and the sea. action,

the

that

UMT

depends

upon

programed
their

six

our

Specifically,

it

means

that we must have ready for immediate duty powerful, welltrained air, naval and mobile
ground forces. UMT makes no
contribution toward such a state
of immediate readiness.
In fact,
the diversion of trained military

proposed

dinner

^avern
..

,

me

Feb

p

1

at

Fraunces

members

of

the

pilot

trlmng
the

£„
.

With C. A. Botzum

first

(Special to tbe financial ch.on.=le)

lixsu

^

and Raymond J. Hulen have become affiliated with C. A. Botzum
Lo., 210 West Seventh Street.

be put into effect, if at all, after

(Special to the financial chronicle)

connection

it

is worth

forces, but of

the

a

are

not

armed

separate organi-

National

Security

emergency shall be
Also, the little pilot plan is

.

.i

.

c

p

JoillS tile £>roy L.O.

present

gAN FRANCISCO, Calif—C. G.
Loewenstein

has

become

not intended to accomplish much

con-

rnmnanv

beyond committing us to a pro- nectea witn ine tsroy company,
gram which will not in the near 110 Sutter Street, members of the
future reduce the size of our gan Francisco Mining Exchange.
standing army, remove the draft,
or pacify Soviet Russia.
Adds Two to Staff
Selective

Service,

in

fact,

is

tn

Thp

FTNANrTAr

r„snv,riri

meeting the emergency in a good
way and should be able to get all

aI ~ ™ financial chronicle,
LUb ANGELES, Calir Norman

reserves

needed from the man-

Barratt and Donald G. Savage are

pool

between the ages of

personnel to UMT training duties
would work against such a state." fbe

zation,

^
of the firm's founding

Pass UMT during the present
emergency we shall never get it.
But, in so far as UMT is concerned, there is no emergency,
for it is a long-time program to

overwhelming power immediately past.

noting that the UMT boys
18, give these to be members of the

fftionths' military
training, then-t^ey would go right
men

...

and that, as Sen. Millard
LOS ANGELES, Calif. William
the subject, Tydings has sai<d; "If we do not D. Bradford, Robert W. Hocking

country

this

Ellis

»

Green, Ellis & Anderson, 61
Broadway, New York City, mem-

year,

Another writer on
Prof. Alonzo T. Myers, Chairman of the Department of Education in New York v University,
writes in January, 1951, as follows: "The successful defense of

In

oq Years for Green

niversa'ry

what is of primary imWe are told that the present
portance, using any weapons, is emergency
requires
immediate

>

namea

^

^CetiPme %onsc?ipt?on P
f

initial pnase of f

available.

are

were

p^"Lipdi liuu cuin-

House Committee, Louis

of full-

readiness to meet an attack with the

their program

it

should

a year Or so

trained

advocates of UMT

i

it.

anY war,

our

"3"?wing
.f/

of

have after

Jim.e UMT?

Security and Training
Corps Pilot Plan."
Evidently, the
to push

billions

strategy."

reserve

be

the

many

their

service.

would

enemy

ThpfnlWW

dollars would give us better value ^- Murphy
Columbus Coated
if spent on aircraft, carriers,■ *21:
np1
launching sites, guided missiles,
•
>
Finanpp rnmmittpe
rockets, robots, atomic weapons,
^Sbl *n ^ Rndav Th^ H^nvpr
tanks, task forces, scientific re* EntertainmentCnrnmitW
search and, last but not least, c g » .. T
.
.
orpsit Finish '
improvement in our neglected .•
c
f' a noresi . i nintelligence service. The costs of mj^ee paidh'm Allaire Utica &
the proposed program would not
j p cfevens &
be too gfeat if there were results c0> • jnc>
'

Emphas30r®'^ voaiSnte0errsthwiliracnosntg
insular ,st"teg-['d0,J mass str®l ^ f bilUon dollars for
e&y> dS opposea io
army nan Dinion aonais iui

18 months of active

by

the
1949-

so

_

and reason to

every way, the
effects of
w|uld rapidly wear
away or becom: obsolete during

in civil life. Ot course, they will
be required t< take refresher
They would receive from courses with thi National Guard
the beginning the pay of draftees or some other Organization, and
—$75 per month—while trainees training in camp!but even so they
would receive but $30, and they would
require fionths of addimonths'

in

that

pause

wTcan a^ac^

experi-

some

also

^wJork Times of May 4, 1949.

•

suggests

said

us

Mr. Gallagher succeeds^ as President Ral^ M. Allaire of Utica &
Mohawk Division, J. P. Stevens &

p0Wer

lgl/

2g

Moreovel.

these

u
'
men can be trained for active
service long before they can be
.

.

now

523
.

ot

with Quincy Cass Associates,
West

,,

the

change.

Sixth

Street,

members

_

Los

Angeles

btock ex-

36

The Commercial and Financial Chronicled?

(596)

There have been cash divi-

rule.

The stock of Central

Soya Co., nrentp; submitted H&rthe Insurance
traded over-the-counter *D^qj^m6nt TWill!/a]
;"(\dllValso?shoW '"on
and I would consider it a very* page four Whether the corripariy's ~
desirable investment for one who' loss reserves ard producing addf_

'

Continued

from

2

page

taled $1.60

share,;

a

.Finances

The Security I Like Best

tive, with the stock preceded by
only $9.8 million long-term prom-

issory notes.

Continued

satisfy

in

financed

be

the

most

eco¬

without diluting

manner

of

worth

cial Lecithin bear the
mon

$6,500,000 at the

there

name,

difference

the shareholders' equity.
Net

_

^

'

'

'

from

6

page

paid (a quarterly of 40 cents has
iltikthe: * filial analysis,;'; in my
been declared payable Feb. 15)," opinion, the test of ratios is less ?
v
the stock yields about 4%.
u significant than the use of the five
toots* I have4 mentioned earlier. ;;1
The' ratios contribute to an anaIy-% %
sis of the'

in

holders increased 75%

past five
No

is a marked
composition of

the

year! The surplus to policy¬
during the

every

cial

a

Strenigth of the balance ;

are

necessary

with

such

While the Continental

:

$22,500,000 at the end Of 1951. The
equivalent equity
per
common
chare rose from $10.90 to more

their

;

than $35 per share.

results ;

tion.

is

out¬

an

example
of
financial
many
other companies

standing
strength
could

its finan¬

flying colors.

also

be

signalled

for

out

impregnable financial condi¬

! '

be unsafe for another.

Figures by ^
themselves can" be deceiving.
^

\

Balance sheet,

income account,
I n s u,r arice Department, shareholders' appraisal and judgment
of management;these are the,;./
,

settling its claims
quickly without going to trial

194867

might

safe ratio for one company

answer—but in candor there

some

'

other %
that' a

many

factors enter in, however,,

isn't. A company

tools L commend to you.

And with r',jJ
gentlemen, if I may
one
with many unsettled claims paraphrase a recent distinguished
V;
on the books.
Loss reserves will visitor: to these shores,, you? will ^
v
also vary as to profitability of - finish®the job;:;,

very

tests

company passes

test

Central Soya's operations com¬
prise two divisions.
Though!in¬
dependent
economically,
they
work together to obtain the best

end of 1941 has risen to more than

years.

other

when

the two products."

•

more interested in capital gains' tions or deductions from surplus^;—
than current cash income. Based This is a good indication of^deon the cash dividends now being quacy.
'

Keys to Insurance
Company Strength

com¬

same

5

■

sheets it is- true. So

is com¬ mercial trades should not be
with
chemically pure
posed of men who have made their confused
way through the organization over Lecithin, which is used only in the
While chem¬
the years and are dedicated to a fine chemical field.
policy of conservative expansion ically pure Lecithin and commer¬
to

'

a more

The management group

nomical

"

Inc.,. is

notwithstanding the is

expansion of the business,
capitalization remains conserva-

stockholders' are being discovered at a rapid
liberal policy. rate. As a result, many industries
Dividend has been paid every year are utilizing ever-increasing
«ince 1936.
At present there are quantities of Lecithin for a wide
638,709 shares outstanding out of variety of purposes.
"The Lecithin used by the com¬
2,000,000 shares authorized.
to

-

carefully

great

a level of approxi¬ cost has enormously increased its
Lecithin
has
piqued
the
mately $6,500,000 to $7,500,000 in use.
recent years.
It is probable that curiosity, interest and ingenuity
future payments will be supple¬ of chemists in many fields; and
mented
by an occasional stock new uses and applications for it

dividend

/ /

.

.

been

have

handled and,

triliintained at

requests for

1951 they to-

dends, too, and in

'Thursday, February 7, 1952

.

will have lower loss

business

to

in

as

to

class

of

than

these: tools,.

busi-

J

The only tests one can make

ness.
as

and

reserves

adequacy of loss reserves

Taylor Co ..Adds Heintz

are

r

>,^1 f*,

Special' to Thz FixajTctal Cheonicle)

comparing like companies with
BEVERLY HILLS,: Calif.
classes of business, profit
Hdward' W, Heintz has joined■ the v>, of ^a.w soybean pur¬
may
have heard
about margins
and
claim
practices,
* The common stock of Ex-Cell-O
staff:pf;JayldK arkL Company,-170
«1Corp. is fully listed on the New chasing,? storage "and$ processing;. ratios; that if certain ratios are Where one company's loss reserves
Mh Heintz f J hi"-.
sales ^/cruder si^tfbean oil,.. Leci¬ met, then the financial condition under
£l/j.
i;1
•>' »•/*•••*. J' *' _V'4*»'■'<y,
these
circumstances, are
York Stock Exchange and Detroit
thin and soybean meal to refin¬ is
satisfactory. Here are some of substantially lower than another
Stock Exchange.
eries, food processors and animal the ratios generally used:
it is quite proper to ask why. An &*Gov^nd. E, !Fi; Huttonr& Com- >-;;

/,

takes

feed

CHARLES A. TAGGART

Central Soya

.

While

-

Co., Inc.
have

I

written

before

about stocks with exceedingly long
records

dividend
end

through

depressions,

I

'

manufacturers.

The

facture,

promotion

tion

concentrated

of

other

in

in

mixed

and

to

other

ingredients. '

the

liabilities
.

pur¬

this

As

,

is

1941

only, in which
year
they
initiated.

were

There
been

has

inter¬

no

ruption

since,

the

and

stock

dividends

be¬

fore and after

1941,

have

been

form

of

The stock is
A.

that

Taggart

tral

of

Dairy Cattle."
complete
ticular

by

Cen¬

Aug. 31, 1935, resulted in sales of

These sales increased

each year, with one

$127,000,000

for

exception, to

the

fiscal

year

pertaining to the

par-,

mention these

I

of impressing the reader

the

management's

aggres¬

siveness.

located

are

in

the

heart

of

the

major soybean producing areas at
Decatur,
Indiana, Gibson
City,
111.; Marion, Ohio; Harrisburg, Pa.,
and

Memphis, Tenn.

The

capitalization

Central

of

Soya Co., Inc., consists of $9,800,000 2%% serial notes due March

It

is

my

growth

can

value

of

beans is still

a

young

soy¬

industry in

is

emphasized by the in¬

creasing uses found for soybean
derivatives.
One such derivative
Is Lecithin,

a

very

unusual

sub¬

stance which possesses unique and
valuable properties in the manu¬

facture of many foods and indus¬
trial
products.
While
Lecithin
Is
a
natural constituent
of
the
cells

and

of

practically

animal

all

vegetable

tissues, it is imprac¬

tical and uneconomical to extract
it from most of these sources.

Quoting from
the

company,

Lecithin

was

folder issued by
"For many years
a

considered

a

labor¬

atory curiosity and was produced
only in small quantities at a very
high cost.
In recent years, how,

the

ever,

use

of

Lecithin

has

become

practical and widespread

because

of

ecale

the economical large-

production

Lecithin from soy

"The

from

553,361

of

commercial

oil.

production
of
Lecithin
oil at a relatively low

soy




before

after

it is

should

assets

fiscal :year

taxes

and

The

taxes.

$4,net

able to pay

of

$0.97

a

$35,967,838
common

creased taxes.

before taxes

share.

and

share

earned

after

in¬

The amount earned

was

equal to $2.03

The

quarterly figures
subject to audit.
Now

let

who
but

one

May,
stock

,

Not

in

was

consider

us

stockholder.

1939,

purchased

after

dividend.

the
He

purchased

Central

that

for

time

early

necessarily

one

stock

first
could

Soya

$16 ¥2

would have received

100%
have

stock at

share,

a

$1,650 for 100 shares.

in

In

or

1945, he

20%

stock

150%

stock

50%

stock

a

dividend;

in

1946,

dividend;

in

1950,

dividend.

Today, he would have

450

is

a

a

shares, worth at the time this

being written,

$17,550.
capital

That

$39

is

gain—962%

a

a

share,

pretty
on

my

or

good

slide-

be

to

live. In the

we

6 years we have

while the
stocks

decline

bonds

Government

highest grade

have

U. S.

seen

advanced

10%
I'm

not going to open up this big sub¬
ject of bonds versus stocks except

premiums and loss reserves
be covered by cash and the high¬
est grade investments. In my opin¬
a

of 50-75%

coverage

19487

1,014,276

tirely

provided

satisfactory,

en¬

the

sound and of good

are

quality.
(2)Policyholders' surplus should
equal unearned premium reserve,
another famous

ratio. This

1

1 to

as

unearned
be
a

premium

double
2

to

cumstances

extensive

in

$7,962,670

true

This

because

of

guarded
The

by

Total

'

tionately

by

-

hurricane

of

COMPANY Y

history, lost only 10% of
surplus. While 10% is not a

its

small

amount,

it

is

remarkable

that the effect of this catastrophe
could be held within such limited

bounds.

(3) Casualty loss reserves. The
a

ratio that

mine the adequacy of
reserves

is

almost

can

deter¬

casualty loss

as

old

as

that

for the Fountain of Youth. Should

they
mium

be

equal

reserve,

unearned

to

unearned

twice

premium

how much?

as

pre¬

large

- as

reserve—and

Surely there must be

♦63,000

♦255,000

REQUIEM 1951
;'r'

729,400

8,540

651,623

1,522,387

Recoverable—

103,182

29,371

/.:
Liabilities
Adjustment Expenses

Losses '&

$6,497,085

Commissions, Taxes, etc—
297,399
Unearned Premiums __—5,127,484
Reinsurance

Funds.:—/
188,854
j."—-—— >/-"/ 27,831*
41,618
Excess Statutory Loss Reserves
241,665
Treaty

Other,/ Liabilities

Reinsurance—.

Unauthorized

Bonds
Real

Policyholders'

920,459

Surplus.——

Loss &

Statutory

Surplus to

Expense

Underwriting

Ratio

.

3,354.000

...

119.0

2,159,000

_

Reserve

Equity

109.1

$204,000

*1,838,000

y

*14,000
181,000

♦1,174,000

5,023,000

102.2

♦85.000

*94,000

2,650,000

-.

125.5

♦2,796,000

224,000

"Loss.

(Dec. 31,

1951)

CONTINENTAL INSURANCE COMPANY

(Example of Financial Strength)
Assets

Liabilities

V

Stocks

$249,902,639
143,554

—

Unearned
in

Losses

Premiums
Process

$60,940,613

of

-6,733,824

Reserve

for

Accrued———.

501,433

Reserve

for Taxes &

Deposit & in Office

8,051,936

Reserve

for

other Assets——

4,564,245

Contingency

on

Change Premium

Results

♦$2,463,000

125.9 a

$2,550,000

...

Cash

2,650,459
$15,072,395

.

Policyholders

•'

Estate

Interest

12,421,936

„

1,730,000

FIVE YEAR TRENDS

Agents Balances

All

Total

$15,072,395

_

&

Liabilities

Total

Capital Paid-up
Net
Surplus

Adjust—

Reinsurance

686.306

5,254,000

all other Liabilities

1,984,168

Res...

1,850,113

—_

25,000,000
158,345,751

Policyholders' Surplus

—

Total

$269,897,632

15,836,679

Expenses-

Capital
Net Surplus

Total

search for

—

$11,940,005

EXHIBIT C

propor¬

surance

158,000

♦322,000

'' v:

Assets

1950

reinsurance.

greatest disaster in American in¬

♦715,000

♦284,000

(Dec. 31, 1950)

1948

the

Thanksgiving
1950,
the
second

562,000

iu.5
126.4

Equity

$236,000

107.0,

2,003,000

Reserve

Results

"$304,000
•523,000

105.8

2.026,000

Interest

1947

the

Underwriting; Change Premium

99.7^'

3,395,000

1946

premium

hardest hit

if-

/"" Statutory

•

Rati©;'

3,020,000

_

surplus is safe¬

excess

company

Loss-

Expense

$4,857,000

1949

assumed if

•/
L

10,000

stock of catastrophe. Since surplus
is
the
policyholders'
bulwark

be written and unearned

.

77,887

is

against catastrophe, it follows that
a greater volume of business can

•

$7,962,676

;

Surplus to

Assets

the

cushions

which

■V;:-

Policyholders

Equity R. F. C. Funds

excess

of

development

r

..

•

^Mrrri.

FIVE YEAR TRENDS

Other

certain cir¬

more.

even

111,6^.8.

,

♦Loss.

Accrued

cannot

reserve

and

■

Policy holdws'.: Surplu^^'fi^J^; -2,102,296.^-; e<-

Agents Balances

policyholders' surplus,

ratio

1

Misceiianeous;;-/liI;;r_^

Capital paid, up.—--.TliOOO,OpOv..v
.
NeV'Vtirplus—.
l,102>296.^Z./>i 'J-

Reinsurance

underwriting is consistent¬

ly profitable and assets are sound¬
ly invested, there is no reason why

Ss^i^^iSoramfss^
206,744v?;.t-.
Tre^y^Retafltfra^e.•'•Funds.%•.v 83£31 L':
■
Due Reinsurers, Agepts,£etc.A*.1,999; f02
/

673,383

■:

Mortgages

ratio also appears out of date. As

long

:

211,973

Stocks
Cash

tittles
WaWlttles

268,700

1,598.487

Receivable

Bonds

is

/y «■

'

Lqss„..385;T97**,v- ;
T axe&J'1%;—1.^
155,422 < ■ >,

1,377,459

Recoverable-

to
say that the
Insurance Law
stipulates that only 50% of un¬ EXHIBIT B

earned

••

Uije^ed2;'.fcr.ettijuma^

$2,818,398

ZZZZZZI-III

1945.

common

30%.

/

REQUIEM 1950

.

.

Total

believe this ratio
is too conservative for the age of
inflation in which

COMPANY X
Assets

Miscellaneous

Personally I

reserve

the ground floor,

on

who

an

a

are

hand

on

rXi?:'!

(Dec. 31, 1949)

Premium Balances

Notes

1

■

Reinsurance

off all liabilities—the

reinsurance

sales

be

famous 1 to 1 ratio.

fiscal year the company had

new

was

Cash
-

converted into cash in order to be

particularly

taxes

cancel

|(°0nc£sg

possible. Therefore,
argued, sufficient high grade

equal to $4.60 a
In the first quarter of the

after

share.

the United States.

the

ended Aug. 31, 1951, amounted to

continue, because the $8,546,605

production and processing of

This

for

would

all
and

>•■!

•

EXHIBIT A

still

other assets

stated

a

Earnings

opinion that such

it is

stock

Aug.

to $4,553,000.

I

but

ion

with

that

for 'example,

1, 1953 to March 1, 1971, and 989,956 shares of no par value capital

The earned surplus
31, 1951.
With no $19,800,000.
as of Aug.
31, 1951, amounted to
yearly interruption working cap¬
ital has increased from $170,559 $9,045,419.
The current position
to $20,974,000; fixed assets (net) was strong as usual with current
assets
of
from
$28,116,603,
including
$7,562 to $17,131,000; net
worth from $180,848 to $28,849,- cash of $11,545,819, exceeding cur¬
rent
liabilities
of
$7,142,071 by
C00; and net income after taxes
with two exceptions, from $42,948 $20,974,532.
ended

have

past

Processing plants, manufactur¬
ing facilities and storage elevators

Soya Co,,

The company started in 1934
end its first year of operation, to

manual is
illustrations
and

subject.

way

with

Each

with

instructions

Inc.

$1,247,000.

for taxes, conceivably might
to be paid off. It is very

serve

\

examination of the Annual State-

premium reserve, loss reserve, re¬

"Management- demand their return
premiums—

Calves," "For Broilers" and "For

hand¬

some.

Charles

except
policyholders'
surplus. The reasoning behind this
is that these liabilities, unearned

policyholders

dividends
since

similar

/;

premium balances should cover all

distribu¬

and

addition

chased

;/.

"■'/

(1) High grade bonds, cash and

manu¬

animal feeds utilizing important
tonnages of the company's soybean
meal

V •

-

You

cash Manuals,'* "For Hogs," "For Poul¬
try." "For Turkeys," "For Beef

paid

,

division

being written, I have before me
to publications i of the feed division> unlikely,

which has

one

One

>

wars

turn

now

all,

division is engaged in. the

Pres., Charles A. Taggart & Co., Inc.,
Philadelphia, Pa.

•

fqr

.care

185,195,865
$269,897,632

FIVE YEAR TRENDS
Loss &

Surplus to

Expense

Policyholders 4

Ratio
95.3:«

$108,976,000

Statutory
Underwriting

Change Premium

Results

Reserve Equity

'$1,598,000

112,428,000
—

1950..

......

1951

—

89.1

2,512,000

135,947,000

81.1

15,491,000

166,945,000

185,195,000
♦Loss.

.

$5,928,000
6,421,000

92.9

6,214,000

2,222.000
641.000

92.0

3,605,000

1,548,000.,

■

,

..

y

Volume 175

Number 5088 v//vThe Commercial and Financial Chronicle

I

(597)

Continued

from

page

but

5

below the

well

were

1950

total

of

199.

Failures

down

were

48% from the 318 recorded in the similar week of 1939.
Casualties with liabilities of $5,000 or more rose to 140 from
115 in the previous week and 123 in the
comparable week of 1951.
All of the week's increase occurred in this
group.
would bring the

total price increase to $10-$12 a ton.
But the
play will reduce that figure, perhaps by half, concludes
"The Iron Age."

Wholesale Food Price Index

squeeze

in Second

Moves

Slightly Higher

Continued from page -15

Consumer

Set Second Highest Tonnage Record

attention

rise in the Dun & Bradstreet wholesale food
price index last week brought the Jan. 29 figure to
$6.61, from
$6.60 the week before. The current level represents a
drop of 1
7.8% from the $7.17 recorded on the corresponding date a
year ago.

This Week

v

Market

Another slight

-

is' focused

steel

on

prices at the moment,

"Steel/' the weekly magazine of metalworking. What may
prove to be another hassle appears in the making. Senator Capehart threatens a bill repealing his price amendment to the eco¬
nomic controls law if it Is used to increase steel prices in conjunc¬
says

tion

with

a

The

and last July

26.

with 326.61

of

now

the week

in

Capehart

tations

that

late

this

month

probably will know how
Meanwhile, producers are
quoting prices at unchanged levels, states this trade paper.
are

you

More

signs of easier supply conditions are appearing as the
order cancellations from civilian goods manufac¬

Whether this easier

by production cutbacks.

as

talk is heard

trols

sup¬

American

the

Iron

operating

rate

and

of

announced

companies

this

for

the

week

beginning

Feb.

4,

2,090,000 tons of ingots and steel for castings,
of a point above last week's production of

100.1% of rated capacity which recently
A month ago output stood at

production stood at 96.7%,

ago

Electric Output Declines

98.3%,

or

was

or

an

business

in

It

the

to

tons,

or

the

was

A

year

moderately

:

'

scarcities which failed to

last week
ago.

the

1,510,337,000 kwh.

.corresponding period two

retail
was

volume

of trade.
in

the

period

ended

estimated to be from 3 to 7%

7.2%

below

a

decrease

of

56,233

following percentages:

below that of

England

—2

to —6,

or

Swollen

the

car

above

production in the United States
the

rose

The

Ago

output for the current week

was

made

up

7,820

and 2,767 trucks in the similar period of

Business Failures Advance

in Latest

a

below

Week

Northwest —5

as

lines, particularly textiles

order volume remained

buyers

attending

many

near

and

ably with the like period
was

on a

countrywide basis,

as

taken from

attributed

in

part

a

to

last

year

week

compared rather favor¬

being only 4% lower. This
weather in the 1951 week,

ago,

adverse

•/According to Federal Reserve Board's index, department stqre
sales in New York City for the weekly period ended Jan. 26, 1952,
^decreased 16% below the like period of last year. In the preceding
week a decrease of 15% was recorded below the similar week

\

Inc., reports.

preceding year.




(1)

ever—will

ready

totals

record

to

of

con¬

the

spend

spendable

casht\

.

Business in clothing, shoes

and

textiles

will

improve

over

recent levels—most manufacturers

and

merchants

hardly get
The

that it

say

worse

improvement "will

tional

war

Malaya,

probably

Even if

addi¬

develop in
other areas,

scares

Burma

or

aren't

consumers

likely to start
scare-buying
spree
in

another
soft

goods.

new

fabrics

tractive

But
and

new

much

prices

will
merchants
to

goods'

could

than it has been.

not be sensational.

fashions,
more

enable

at¬

soft

show

very

pleasant plus signs in comparison
with year-ago figures. Of
course,
first quarter comparisons will be

against

1951,

the scare-buying pe¬
January and February,
that in most cases they'll

of
so

still make poor

reading. But after

heavier income tax payments have
been made next March 15, the im¬

in

provement

year-to-year sales
will bd"increasingly

comparisons
noticeable

for

soft

goods

mer¬

If

basic

chants.

(2)

Hard

goods.

the

of

lull

in

the

consumer

spending for hard goods has been
market saturation, not much im¬
in
hard
good
should be expected in 1952.
provement
of

full-scale

no

spending

While

goods

sales

Short

there will

war,

be

for hard goods.

spree

inventories

of

hard

most

down substantially frOm
peaks of last summer and
are

their

fall, there probably will be enough
supplies to tide consumers over
until about

mid-year.
however,
lack

year,

After mid¬
of

metals

rather than lack of customers may
be the limiting factor on manu¬
facturers'

sales.

ago

However,
between supply
demand is not likely to be

very

1952.

discrepancy
at

time

any

Shortages

are

during

the1
and

likely to be spotty

and confined to the

makes
sets

of

and

more popular
refrigerators, t.v.
other household appli¬

cars,

ances.

Summary
Over

markets

of 1951, while for the four weeks ended Jan. 26, 1952, a decrease
of 19% was registered below the level of a year ago.
For the
year 1951
volume advanced 4% above the like period of the

year

be

sumers

analysis
spending in

consumer

When—if

recent levels.

wholesale

which held sales down.

,

a

1952?

ap¬

Commercial and industrial failures rose to 164 in the week
ended Jan. 31 from. 142 in the
preceding week, Dun & Bradstreet,

Casualties slightly exceeded the 159 of

imply for

sumer

hard

Retail trade in New York

ago.

0

of

some

year ago.

of 70,446

year

and

Federal Reserve Board's index for the week ended Jan. 26,
1952, declined 14% from the like period of last year. In the pre¬
ceding week a similar decrease was registered below the like
period a year ago. For the four weeks ended Jan. 26, 1952, sales
declined 15%.
For the year 1951, department store sales regis¬
tered an advance of 3% above the preceding year.

and

cars

-

the

24,673 trucks built in the United States, against 63,523
cars
and 25,012 trucks last week and
113,128 cars and 27,269
trucks in the comparable period a year ago.
Canadian output last week rose to
3,430 cars and 2,955 trucks,
against 3,306 cars and 2,881 trucks in the preceding week and
cars

number

in

Department store sales

the like week of 1951.
Total

<

dropped noticeably from the prior week, but remained higher than
•a

last week

previous week, but fell about 38%

inventories

pliances, continued

compared with the previous week's total of 88,535 (revised) units,
and 140,397 units in the like week a year ago.
11%

-

East, South, and Southwest —1 to

merchants prepared for the coming season, the total
volume of wholesale orders held at the high level of the preceding
week.
Bolstered by orders for defense needs, total wholesale
purchasing continued to be slightly higher than that of a year
ago, although the dollar volume was smaller due to price declines.

cars, or

Passenger

by

year ago

-

,

year

As many

Motor vehicle production in the United States the past
week,
according to "Ward's Automotive Reports," rose to 95,119 units,

about

a

a

1952

great

cars,

Auto Output in U. S. Advances 11% Above Week

Wednesday of

to —9.

corresponding week a year ago, but a rise of
14.5% above the comparable period two years ago,
when loadings were reduced by restricted coal mining operations.

91,999

on

Regional estimates varied from the levels of

New

Loadings of revenue freight for the week ending Jan. 26,
1952, totaled 727,933 cars, according to the Association of Amer¬
Railroads, representing a decrease of 19,729 cars, or 2.6%
below the preceding week.
represented

Outlook for

What does the previous

cause

develop, states Dun & Bradstreet, Inc.,

in their current summary

ican

total

a

period
ended on Wednesday of last week as shoppers spent slightly less
than in the prior week. As during recent weeks, the total dollar
volume of retail sales did not approach the unusually high level
of a year ago when shoppers bought avidly in anticipation of

Loadings Drop 2.6% Below Preceding Week

week's

from

-

—5, Midwest and Pacific Coast —6 to —10,

The

fairly

a

The usual seasonal lull in retail trade continued in the

years ago.

(Car

over

largely influenced by reports of continued

season.

pre¬

spending for

riod

moved

down

behind

defense goods and industrial
plant
in 1951 offset just about all of the
decline in consumer

up

and

goods

date last

same

revised upward.

2,041,000 tons.

1951, and

buyers

as

Customary Seasonal Dullness—
Wholesale Orders Sustained at High Level

43,989,000 kwh. less than that of the
473,047,000 kwh., or 6.7% above the total
3,

quotations

Chicago

Austria

Trade Volume Suffers From

1,933,100 tons.

in excess of the output reported for the

closing

irregular

at

to

increase of 0.5

2,079,000

was

was

were

reported

market, a lag in price-fixing operations,
military procurement may be curtailed by
30%, starting July 1. Cotton ginnings for the season
through Jan. 16, according to the Bureau of the Census, totaled
14,508,000 bales, or about 50% more than the volume ginned to

Slightly From Previous Week

output for the week ended Feb.

sales

as

Total

preceding week.

fair

indications that

much

as

stitute.
total

more

with

due

goods

recessions.

-

easiness

slowness

distributed by the electric light
and power industry for the week ended Feb. 2, 1952, was esti¬
mated at 7,572,432,000 kwh., according to the Edison Electric In¬
current

was

moderate

was

range' with

The

The amount of electric energy

The

corn

better demand

wide

week

equivalent

during

low tem¬

"week ago.

having

1952,

S.

*

goods

measure

lie

they will have?
demand for

Spot cotton prices

93% of the
steel-making capacity for the entire industry will be 100.6% of
capacity

and extremely

Holland.
Hog prices closed firmer
readily absorbed the moderate receipts.

and

Steel Institute

steel

snows

and

.■>'

The

that

a

lard

lifting allocation controls. Last week con¬
lifted from chrome stainless steels, concludes this trade

were

of heavy

hard

-

con- -

Strictly
point of view,
surely a fortunate coinci¬
that
rising spending for

was

oats

of

journal.

result

which

U.

dence

con¬

developed at the slightly higher level. Domes¬
tic demand for refined sugar remained light. Lard prices moved
lower largely in sympathy with weakness in fats and oils.
Export

ply situation will prove temporary pending adjustment to greater
defense production remains to be seen, "Steel" notes.
Cutbacks
in civilian goods are largely reflected, but increasing production
of the mills as more facilities come into operation also is a factor.
Producers
are
meeting difficulty moving seconds and rejects.
More openings are reported in rolling schedules and increasingly
larger tonnage is being offered for prompt shipment. Buyers are
.becoming more cautious in ordering with inventories up, and
more

large

declined sharply

corn

for

considerable

mostly,

was

some

Spot coffee prices were steady; demand turned quiet at the
week-end, following the substantial purchases by roasters early
in the month. The domestic raw sugar market "firmed
up a little

receive

turers affected

spending

in

to

replacement basis.

short, the 1951 lull in

.

much you will have to pay for steel.

mills

the failure of

moderately last week. Daily average purchases totaled 35,000,000
bushels, as compared with 40,000,000 the previous week, and
36,000,000 in the 1951 week.
'

be expected soon and expec¬

can

The undertone

range.

over

was

"

Wage-price determination

narrow

with final prices down slightly from a week ago.
Rye
irregular but showed independent strength at times. Trading
volume in grain futures on the Chicago Board of Trade declined

method.
However, continues
"Steel," there is no way of determining at this stage the extent of
possible price increases under the Capehart formula.
the

a

hard and soft goods.

active, reflecting continued
heavy consumption of corn throughout the belt due to the record
number of cattle reported on feed.
There was some liquidation

to $9 or $10 per ton alone. Generally, the steel¬
prefer that a unifrom price increase be allowed

under

company,

the

as

Feed

rather than irregular upward adjustments, varying from company
to

a

disappointment

In¬

Wheat

peratures.

up

would

corresponding date a year ago.
leading grain markets were mixed.

Marketings of both wheat and

part of their cost increases since Korea. They would in no way
serve as an offset to a wage increase which possibly might warrant
makers

were

templated export purchases to materialize. Some unexpected buy¬
ing by French interests lent support to the market.

wages

price increases

in

prices fluctuated in
firm despite

and'prices complicates the whole pricing
problem. The steelmakers are in an increasingly uncomfortable
position with a wage hike threatening on the horizon. Adjust¬
ments under the Capehart formula, at best, would cover only a
Tie-up

,

the

on

Movements

be

can

one.

from the economic

irregular the past week with the
general level moving slightly lower. The daily wholesale com¬
modity price index, compiled by Dun & Bradstreet, Inc., finished
at 308.63 on Jan. 29, as compared with 309.16 a week
earlier, and

apparently in the making? These questions
as the steelmakers seek to determine upon a
course
of action pending further meetings with OPS, adds this
trade weekly.
.

trends

has

the hard fact of durable

it

Commodity

But what about higher
And what about an offset to a possible

costs since the latter date?

sharp wage hike
are
being asked

on

sumer

vious

Slightly

a

Lower Trend in Latest Week

if any, price adjustments will result. Repricing of products would
be permitted to reflect cost increases incurred between the out¬
war

In

to

Commodity Price Level Shows

t.v. set in

a

stations

already

saturation

Capehart amendment for determining ceiling prices. Actually, it
is not certain just what this action means for it is not clear what,

break of the Korean

be sold

was

Wholesale

t.v.

creasingly, t.v. sets will have

general trend of food prices at the wholesale level.

stabilizers last week proposed to the industry

Almost everyone

going to buy

where

received

index represents the sum total of the
price per pound
of 31 foods in general use and its chief function is to
show the

This is significant since the government
a formula under the

hike.

wage

t.v. sets.

who is
areas

Steel Output to

Spending
Saving in 1952:

And
—even

Weekly Rise

37

all, in 1952, total con¬
spending for soft goods,

goods and services combined

is likely to rise a bit closer to the
normal levels warranted
by avail¬
able

buying power.
The rate of
savings will continue
high in 1952, but probably not
quite so high as in the third and
fourth quarters of 1951.
Price
consumer

ceilings
erate

together

with

unavailability of

the

mod¬

some

hard

goods later in the year will help

keep

the

unspent

part of con¬
at high
leve*
income will be

sumers'

income
spendable

Since

rising,
total

for

of

1952

as

consumers'

a

whole, the

savings

may

well exceed the 1951 total of about

$18.5 billion,
of

savings

even

though the rate

may

lower than in 1951.

be

somewhat

38

The Commercial and Financial Chronicle

(598)

in the face of such belief

was

that

Tomorrow's

7%- V:,V

Walter

*

profits."

some

*

V//1////'*;-.;'

*

What has

happened since is
water under the bridge. What
will
happen from here on
should be the prime factor.

Says —
By WALTER WHYTE

*

*

column

week's

*

the ticker.

across

If

*

*

*

In

writing last week's piece

I. warned that

reaction

a

you'll take a look at inportfolios you

vestment trust

.

was

in the wind.

will note that anywhere from
ot%2? of
as high as 32
holdings are lr\ 0/

Using the analof railroad sicnal lifhts. Stocks.
of railroad signal lights,

nov

ogy
I wrote

body
lights

when

"that

agrees

know

4

I

how

every-

that the green
up
permanently

don t pretend to
long they'll be

long

-

tljem ^ for some reason
maybe a crude oil cut—they
the started, to sell.

are
that's the time to start peer-

ing around the bend for
light

inevitable red
-

#

.

*
*
*
Basically I'm afraid the

.

#

*

tire

As this

warning was being
given the familiar averages
were strong at levels close to
their old highs. The Dow Industrials were across 275; the
Consen-

rails better than 87.

of market opinion at

sus

time

was

that

occur

month

or

wa^

It's

however,

another

better

and

to

take

a

chance that inflation will take

was

another slice out of your

right around the corner.

It ^arg^ ^hen put them into

dol-

some¬

thing that may be obtained
cheaper with a little patience.

Pacific Coast
For

Securities
Orders Executed

Pacific

Coast

on

1919

SECURITIES

Stock

New

York

York

Curb

San

Exchange
Exchange
(Associate)

Francisco

Chicago

.

New

Stock

Board

Yotk

Cotton

14 Wall Street

San
r

Wirts

Exchange

Teletype NY 1-928
to

Principal

Francisco—Santa

to

consider

them/

switching

Offices

7 K

.

|The

views
do

expressed

Barbara

(Special

Adams

to The

and

joined the

•

CALL

vestment

Per 100 Shares Plus Tax

Douglas Air.. .@58% Apr. 11 525.00
Wilcox Oil...@24
May 12 250.00
Mons'to Chem.@99% Apr. 21 487.50
Armco Steel. .@37% Apr. 14 300.00

Financial

In¬

California,

87

(Special

to

The

OAKLAND,

Financial

Calif.

—

Isaac

B.

Aylesworth has become affiliated
with

Stephenson,

&

Electric Co.

the

The

bonds

group

its

on

and (4) increases in the

and

One of the most

of

Leydecker

&

Co., 1404 Franklin Street.

For Successful

525.00

1

325.00

15

112.50

18

112.50

"Proposal" is

in

broad

a

125.00

expansion

of GRAPHIC STOCKS

21

312.50

10

375.00

112.50

Calls Brokers & Dealers

Inc.

N.Y.4, Tel. BO 9-8470




show monthly
highs, lows—earnings—
dividends, capitalizations — volume on
virtually every active stock listed on
N.

ing

Y.

Stock and Curb Exchanges cover¬
12 years to January 1, 1952.

Complete with

ail Dividends for 1951

Single Copy (Spiral Bound). .$10,00®

Yearly (6 Revised Books). .$50,00
F. W. STEPHENS
15 William St., N. Y. 5

HA 2-4848

$50, plus $10 for each "officer,

partner, employee, etc., engaged in selling securities

program

by

necessitated

demands

heavy

In the interest

The bonds may be redeemed by
the
company
at prices ranging

have

from

actions of

104.47%

to

100%,

for

and

s

supervising such activity."

or

for service in its territory.

waged

a

of securities dealers

and

constant battle for years against

brokers
some

we

of the

regulatory bodies in the securities field.

sinking fund

purposes only they
be redeemed at prices rang¬
ing from 101.44% to 100%.

It has been

may

Louisville Gas & Electric Co. is

public utility prin¬
cipally engaged in supplying elec¬
tricity and natural gas to an esti¬
mated

population

of

500,000

editorial

our

policy to alert the dealers

and

brokers, not only against what

also

against evils that

operating

an

we

happening but

was

foresaw and which should be

This latest SEC

in

proposal calls for stock taking.

What is the lot of the dealer and the broker

today?

He

Among i those associated with
Stuart & Co. Inc. in the

Halsey,

offering
are:
Merrill
Lynch,
Pierce, Fenner & Beane; The Il¬
linois Co.; Thomas & Co.; Fauset,
Steele & Co.; Mullaney, Wells &
Co. and Byrd Brothers.

which,

is

controlled,

although created in
for

tion

17

by

an

With this

SEC,

has continued to func¬

an emergency,

years.

the

agency,

he must register. ;

agency

Illinois

Stuart &

Co.

offering

are

Central

RR.

Inc.

and

$4,110,000
series

HH

To it he must render

periodic financial reports.

at

Halsey, Stuart Group
Offers Equip. Tr. Ctfs.

.

guarded against.

Louisville and its vicinity.

as

any

time, and for

office and examine all

long
or

any

It

may,

it chooses, attend at his

as

of his books and records,

interrogate his customers and what not at will.
This is

an

agency

which has made it clear, infinitely

clear, since its inception, it does not recognize that the
American

system of free enterprise of necessity calls for

2%% equipment trust certificates,
issued
under
the
Philadelphia

mark-up practices being determined by trade custom and

Plan, at prices to yield from 2.00

-

competition through free markets, and not by arbitrary

to

3.00 %

for maturities ranging
Aug. 1, 1952 to Feb. 1, 1967.
Offering is being made subject to

fiat.

An agency

from

Interstate

Commerce Commission

authorization.

certificates, to be uncondi¬
tionally guaranteed as to payment
of principal and dividends by en¬
dorsement of

the

carrier, will be
by 1,000 fifty-ton 16-door
drop-bottom all steel gondola cars
secured

with

estimated

an

value

of

$5,-

Other

members

of the

offering

group are L.

F. Rothschild & Co.;

Freeman

Company;

&

and

Mc-

Master Hutchinson & Co.

Higginson Group

nationwide group

writers headed by

of under¬

Lee Higginson

Corp.

on Feb.
5 offered publicly
400,000 shares of Marathon Corp.
common - stock
(par
$6.25)
at
$27.25 per share.

under the

are

to

be

without any
It is

an

is a major pro¬
protective packaging for

agency

profits. And

Merrill

Lynch, Pierce, Fenner &
Union Securities Corp.;

Beane;
Kidder,

Peabody

& Co.; F. S.
Co.; Paine, Webber,
Jackson & Curtis; The Milwaukee
Co.; A. C. Allyn and Company
Inc.; Central Republic Company

Moseley

&

(Inc.); Harris, Hall & Co.
E.

Hutton

Witter &

&'Co.

Dean

Rudolph Adds

industry spokesman to

have transacted much of

we

recently:

say

large issues of securities sold for small

beyond their control.

our

business at

Dealers in the over-the-counter

As

result,

a

many

of

us are grow¬

ing old, all too quickly, in pursuit of security for

The majority of

age.

sufficient
have

us

surplus to provide for
margins for

our

dimmed and the young men

accumulated in the

It is
to

on

other

do not clamor today to enter

industry which has been living

;.

mean an

securities which remain

The glamor of Wall Street has been somewhat

products.

alien

old

future security as;

our

It will probably

ridiculously low in comparison with sales margins

reserves

our

have not been able to set aside

people in other industries.

an

agency

on

the heritage of

past."

whose concept of justice is thoroughly

American

principles.

The dealer

broker is

or

discouraged from appealing from charges arising under
the

Maloney Act, since, the record will show, in

instances where
out to the

a

appeal

an

petitioner

was

was

numerous

taken, the penalty meted

actually increased.

Yes, indeed, the lot of the dealer and the broker is

V

sad-one.

^7-

to The

Financial

to Staff

Chronicle)

are

unalterably opposed to the latest SEC proposal

which, additionally, includes charges for certain exemptive

filings/ and the qualification of trust indentures.

FRANCISCO, Calif.—Paul
W. Blanchard, Jr., E. C. Robert
Bobadilla, Arthur G. Cook, Joseph
L. Lonigro, Robert L.
Love, A. L.
McNitt, Fred G. Michaelis, Wil¬

this is wrong,

liam P.

ployees to

are

an :•

Co.

SAN

Wright and Zadig Zadignow

with

Paul

C.

Street.

f *

.

■"

7

*

All of,

v*

However, the provision arousing our particular ire is>
one

Ru¬

requiring brokers' and dealers and their sales
pay

Our anger

dolph & Company, 127 Montgom¬
ery

seen

risk and little* gain:

We

(Special

consequences.

industry have been circumscribed in their ability to earn

(Inc.);

and

respect to mark-ups

adequate profits through fear and other circumstances

Other principal underwriters in

include:

with

which-—despite the current stimulus of

securities

a

y'H "We have

our

group

field

inflationary element that will not always be present—

food.

ian

securities

consideration of the economic

added

Marathon. Corp.
ducer of

merrily

as a consequence gone

guise of righteous indignation—to change trade

in the

custom

increase in sales
proceeds

to the company's general funds to
be used for its expansion
program.

Paul

that has

directly, and indirectly through its auxil¬

way

iary, the National Association of Securities Dealers —'

some

Offers Marathon Stk.
A

its

caused

500,000.

Lee

on

;

,

The

W.

1001 CHARTS

significant provisions of the SEC

annual registration fee payable by *

an

brokers and dealers of

The company will use the pro¬
ceeds from the sale of the bonds

JANUARY, 1952 ISSUE

19

1952 MARKET DECISIONS

present fees for photo-duplications,7

charge for each certification.

a

was

bid

Blyth & Co.,
Inc.; Smith, Barney & Co.; Leh¬
man
Brothers; Clark, Dodge &
Co.; Robert W. Baird & Co. Inc.;

Chronicle)

Thursday, February 7, 1952

page

.

the

5

THOMAS, HAAC & BOTTS
Association,

of

Dopp have

Standard

275.00

Subject tq prior sale or price change
Explanatory pamphlet on request

50 Broadway,

Co.

L.

of

S.

Ruth

5

..@24%Mar. 12

Members Put &

James
staff

Chronicle")
—

.

In!

1, 1982, at 101.467% and
interest.

awarded

The

Stephenson, Leydecker

Republic Steel @43% Apr. 26 225.00

Radio Corp

this

•

Pacific.. .@62%Mar. 18 $300.00
H'stake Mnff..@35% Apr. 29 25(k00
III. Central...@57%Mar. 24 325.00
Cont'l Oil... .@64%Apr. 30 487.50

Apr.
Coca Cola...@105
May
Sunray Oil... @21%: July
Studebaker ..@33%Mar.
St. Lo.S. Fran.@24% Mar.
B & 0
@19
Mar.
Am. Tobacco.@62% Apr.
Union Carbide@59% May

in

South Lake Avenue.

So.

MoKanTexpfd @52

into
;,77'v:/^7

With Standard Inv.

Rosa

OPTIONS

^

not

PASADENA, Calif.

SPECIAL

to

necessarily at any
time coincide with those of the
Chronicle. They are presented as
those of the author only.]

Monterey—Oakland—Sacramento
Fresno—Santa

reason
seem

exceptions to the general
decline.
Among these are
television and motion picture
stock.
With many of them
still in the good yield area the
present might be a good idea

article

Trade

New York 5, N. Y.

COrtlandt 7-4150
Private

Exchange

of

strange

some

Members
New

*

be

Schwabacher & Co.
INVESTMENT

*

■

the amusement issues

Exchanges

Established

&

*

due Feb.
accrued

slim

some

until

so.

offering $12,000,-

Gas

3%% first mortgage bonds, series

associates

fore it will g0 higher. Maybe;
a
reaj
buying opportunity

won't

group which is

000 Louisville

Halsey,

exceptions, will go lower be-

from first

.

Halsey, Stuart & Co. Inc. heads
a

en¬

that

high

a new

market, with

Continued

101.01%.

was

Going back again to last
barely out of the typewriter week's column I want to point
and on its way to the
compos-ato the statement about oils,
ing room, when a spill came.'the
leaders
of
practically
Prices melted away like snow every recent advance.
I
in a rain and volume picked warned that staying with the
up on the downside. All in all oils might not work out to the
it must have been a discon- trader's advantage. "Dont
certing picture to bulls who stay with them too long," I
were sitting by with a fistfull wrote, indicating it was not a
of long stock glaring at the one-way street.
Translux as the dreary news
*
*
*
came

Halsey, Stuart Group
Offers Utility Bonds

suggested,

"... it is time to start think¬

ing of grabbing

Markets

Last

column

this

.

dens

placed

em-'

annual registration fees.
is prompted by the additional heavy bur-

upon

those who have been

so

long suffering.

Volume 175

Already
some

Number 5088

have fallen by the wayside—some weak,

many

We

There
and the

saddened

are

was a

storm

"big"

vanishing distinctions. The

regulating octopus knows
Brokers and dealers who

This

maw

them.

seeks

to

fees for regulation.
and

charges

not

rest

Congress has
•The

It is clear that,

the

SEC

but with

Securities

It

power

the

to the

Congress, and
power.

SEC.

gave

affected with

a

3433

giving in¬
upon

the

the

securities

industry be heard in

group

should be organized

which,

purpose

together with the
should

harmony to voice emphatically their objections

One

on

the

the most effective, is by control of the

way,

taxing

national public interest which makes it

these very

Commission

to create any class legislation.

in

are,

to be laudable.

Government.

by the additional hardships of double fees and charges

improperly delegated taxation.

Title V of the

and

equitable.
fair and

made

equitable when similar charges

against brokers and dealers who

light of the Securities Act which

of the Federal

expenses

a source

of deep regret that

inherent in this project.

consequences

a

minority

the

on

an

assault

the rights

on

group to pursue their chosen

basis of equality and indepen¬

sgme

guaranteed by the Constitution to all citizens of

Why

that Title V be
render

circumstances, there is

us

terrifying

a

sion had to go to
ments acted

at

pros¬

^

'

once.

receiving comments

a

investment

on

the Congress for its budget require¬
measure

of restraint

Where that lust will

power.

in the

as

on

'■

banking and brokerage business will fare,

light of this current proposal makes

•

the views expressed above

on

desire to have his

Letters should be addressed to
*

cial

Financial

&

York 7, N.

raise

can

Chronicle,

its

own

ing

will

be

enabled

to

virtually plan

budget by increasing fees and charges and impos¬

new

fees and

charges when it wants

new

budget appropriation.

larger

a

Truly, the Commission is closing

Owens-Il¬

The

trouble with

frequently there

visions

are

little

as

appropriations.

our

legislation is

"slip-in provisions."

publicized.

Appropriation Act is,
certain

great deal of

a

are

The

These

Independent

its title indicates,

pro¬

Offices

bill making

The preamble of the bill states:

"Making appropriations for the Executive Office and

sun¬

dry independent executive bureaus, boards, commissions,

corporations,

agencies, and offices, for the Fiscal Year

It is the

or

*

two

are

largest

Fiberglas

insulating and
material, and Fiber¬

as an

other companies in the manufac¬
ture of electrical insulation and

decorative and
and

industrial fabrics,

reinforcements for plastics,
papers, twines and rubber goods.
as

Net

1951

sales

were

of

the

in

company

$97,449,452, income be¬

fore Federal taxes

negotiation

and

income,

on

flood

$21,570,757, and

re¬

loss

was

income

net

was

$6,064,750. The capitalization of
the company will consist of
$25,000,000 of promissory notes, due
Sept. 1, 1975, and 3,149,364 shares
of

common

stock.

Exchange
Weekly Firm Changes

Park

Feb.

14,

V—FEES

of the

sense

ernment

by

^transfer"of

corporations

Control Act of 1945)

as

to

for

or

any

privilege,

John

Place,

K.

Weeks;

to

Newman

to The

New

are

work, service, publi¬

authority,

use,

of

each

as

uniform
may

as

in the Government Corporation
person

(including groups,

asso¬

businesses),

or

as

to

prescribe

therefor

he shall determine, in

existing

an

consideration

direct

one,

and

collected

any

and

amount

paid

into

such

case none

by

so

with

as

or

cost

to

or

or

redeter¬

Government,

interest served, and other

determined

the

the

Treasury

or

as

C.

Rudolph

&

j

(Special to The Financial Chronicle)

SALEM, Mass.
Gould

has

Gould,

70

—

Clinton

R.

Mann

&

rejoined

Washington

Street,

members of the Boston Stock Ex¬

change.
also

Robert

become
Both

M.

Witham

associated

has

with

have

recently
Harris, Upham.& Co.

the

been

With Merrill Lynch Co.
(Special to The Financial Chronicle)

the Presi¬

fee, charge,

exists,

Paul

regulation

to be fair and equitable taking

indirect

recipient, public policy

pertinent facts, and
be

authorized

practicable and subject to such policies

mine, in case of

value to the

is

agency

associated

Mann & Gould

similar thing of

or

of agencies in the executive branch, shall be

prescribe)

price, if any,

into

Federal

case

Chronicle)

Gould, Witham With

with

head

late

Pearsall.

Financial

now

fran¬

firm.

(which, in the

the

Fund

with
Company.

ciations, organizations, partnerships, corporations,

the

of

FRANCISCO, Calif.—Don
aid H. Buck, Don R. Davis, Ray E
Hummel, Donald M. McRae, O.
Glenn Orr, and Victor L. Som-

(including wholly owned Gov¬

any

York

SAN

CHARGES

Congress that

defined

New

the

Associates,
12/
Montgomery Street. All were for¬

AND

Federal agency

any

the

Exchange will consider the

(Special

Editor, The Commer¬
25

On
Stock

Mutual Fund Assoc. Adds

utility performed, furnished, provided, granted, prepared,

issued

or

shall

ending June 30, 1952, and for other purposes."

own

stock of

common

groups

Smith

V:

cation, report, document, benefit,

dent

a

amounts

company's

Government, shall be self-sustaining to the full extent possible, and

that

an

by

equal

except those engaged in the transaction of official business of the

in and innocent heads will fall.

being

and

in

merly
TITLE

value

Commission

company

being sold

revealed.

name

chise, license, permit, certificate, registration,

through its proposal.

The

*

the

are.

Belin; and of the late W. Schuyler

or

Y.]

*Herewith is the text of Title

appro¬

less than the amount that the Commission

priate

shares

Mutual

How¬

there will be little inclination by Congress to

ever,

Congress for its budgetary appropriations.

products.

the

by

merin

be argued that since under Title V these fees
and charges are required to be paid into the Federal
Treasury, the SEC will nevertheless be compelled to go
the

glass

of

Arthur J. McKenna to Donald M.

It may

to

Glass

develop¬

are

to

related phases of the subject under discussion.

any

states he does not

shudder.

us

fibrous

the

Exchange mem¬
bership of the late John L. Weeks

•

■

They will be published anonymously if the writer

its lust for

it, and how the

carry

Corning

aggregate of 180,000

compelling need

public service by turning to that task

•

In the past, at least, the fact that the Commis¬

pect.

and

continue

of

ment

immediately repealed, and Congress will

marked

a

a

[The Editor of the "Chronicle" would appreciate

self-sustaining SEC is to

to

New York Stock
Under these

legislation and hence discrimination?

A

Co.

Works

the land.

that

Doesn't it amount

Glass

sound control

Congress did not readily perceive the pit¬

privileges of

dence

mem¬

says

is, however,

dangerous

professions

to pay these fees and

charges under these circumstances?
to class

and

already

are

NASD

passed in the interest of the public generally?
brokers and dealers expected

are

are

of

or¬

glas textile products, consisting of
strands, yarns and cords, used by

the object of the plan appears
everyone of us would favor any

Patently, it is nothing less than

to be fair

are

Can it be said that these proposed charges

bers and in the
it is

falls and

Independent Offices Appropriation Act

provides in effect that the fees and charges

are

members

was

ganized in 1938 by Owens-Illinois

"wool," used

course,

Each and

It

stock

common

which

company,

The

justification.

as a

designed to reduce the

measure

not be harassed

offering represents the first

the

product

Yet

opinion, being created

our

using Title V

Superficially, of

benefited, then the public generally should bear the

which amount to

of

the company.

If it is the "national

burden, and brokers and dealers should

The

public issue of the

Works, which will then each

through the device of the SEC proposal, with the

public interest" which is being
served, and it is intended that the people generally are

stock of Owens-

common

one-third of the

that Congress does not have the

us

abuses

un¬

linois Glass Co. and Corning Glass

budget.

power or

133

Corning Fiberglas Corp. at a price
of $35.75 per share. In addition,
approximately
240
dealers
are
participating in the offering.

Constitutional right nor did it intend to delegate its

transactions...."

to be

shares of

issued

strong arresting hand

a

group of

headed
by Goldman,
Co., Lazard Freres & Co.
White, Weld & Co. are offer¬
to the public today 630,000

Sachs &

450,000

It is clear to

to provide for regulation and control of such

necessary

Release No.

20, 1952, to comment

proposal.

enumer¬

commonly conducted

as

that

A nationwide

derwriters

and

A representative

Commission's

securities -exchanges and over-the-counter markets

upon

constant

on

Corning Fiberglas Stk.

ing

its

Congress must exercise

hereinafter

reasons

Bankers Offer Owens-

similarly affected.

representatives of all existing securities groups,
work in

to tax does

Exchange Commission, recites

in Section 2: "For the

vital

immediately for that

such, these fees

as

is

opposition.

taxation, not

Exchange Act of 1934, which

ated, transactions in securities

are

to

right to delegate such

no

birth to the Securities and
in part

amount

illegal because the

are

with

exact

has issued

39

v

proposal.

Therefore the present charges which the

Commission

particularly

passage,

the necessity of being

up

terested persons until Feb.

are

regulatory supervision which is being exercised

over

points

The SEC

NASD members

are

its

against "slip-in provisions."

satiation.

no

against

protest

guard, not only in the securities field but everywhere,

already assessed in the form of membership fees for
the

those in the securities field.

And others—in different fields—are

said about the

was

"small," and reference to those "on the fringe"
are

of

by the casualties.

time when much

frequent. These

of the

(599)

among

strong—and it is difficult to say whose tomorrow

it will be.

was

The Commercial and Financial Chronicle

redetermined

miscellaneous

LOS

ANGELES, Calif.—Donald
Beringer, L. Mayo Brodie, Jack
Carrol], Herbert C. Eggleston, A.
Victor

Kivel, William G. Livings¬
Betty Ann Morgan. George
R. Purvis, and Paul A. Randolph
ton,

are

now

Lynch,

associated

Pierce,

with

Fenner &

Merrill

Beane,

523 West Sixth Street.

receipts: Provided, That nothing contained in this title shall repeal
Into

this

appropriation

Title V which, to our mind,
pose

legislation

there

has

crept

is clearly alien to the

of the Bill and may be considered

a

sort of

a

pur¬

rider.

or

Provided
or

Had Title V been

and

the

publicized prior to its

passage

possibilities under it been properly under¬

stood, there would have been, in




our

opinion,

a

terrific

modify existing statutes prohibiting the

amount, or directing the disposition of

any

fee, charge

or

further, That nothing contained in this title shall repeal
any

fee, charge or price, but this proviso shall not restrict the redeter¬
or

recalculation in accordance with the prescribed bases

of the amount of any such

fee, charge

or

price.

(Special to The Financial Chronicle)

price:

modify existing statutes prescribing bases for calculation of

mination

Joins W. E. Hutton

collection, fixing the

DAYTON,

Ohio—Willard

Carr has become
W.

E.

Main

Hutton
Street.

&
He

associated

Co.,
was

42

W.
with

N~rth

forr~°*ly

local manager for the Ohio Com¬
pany.

II

40

The Commercial and Financial Chronicle

(600)

The following

Indications of Current

week

Business Activity
fiwlicated

steel

month ended

on

Previous

Month

Ago-

Feb. 10

100.6

Feb. 10

Equivalent to—
ffteel ingots and castings (net tons)

that date,

in

or,

2,090,000

INCORPORATIONS
STATES—DUN

INC.—Month

1,933,100

2,041,000

INSTITUTE:

PETROLEUM

oil

Urude

and

condensate

output

■

Ctrude

(bbls.

average

of

42

to

runs

1:6,564.000

6,639,000

6,763.000

22,056,000

22,478,,600

21,106,000

2,865.000

2,872,000

2,523,000

2,873,000

10,391,000

9,606.000

10,522,000

9,954,000

9,222,000

9,121,000

9,371,000

9,905,000

Jan. 26

Distillate fuel oil output (bbls.)

133,861,000

131,310,000

122,558,000

126,261,000

21,180,000

21,864,000

25,528.000

16,446,000

66,450,000

69,783,000

83,792,000

58,997,000

4iesidual fuel oil output (bbls.)
f liocks at refineries, at bulk terminals, in transit and in pipe lines—
Finished

unfinished

and

Kerosene

(bbls.)

at

(bbls.)

gasolir.e

at

oil

(bbls.)

at

Residual

oil

(bbls.)

at

fuel

lo
20
Lb
26
26

All

dfc

lie venue

of cars)

676,675

521,721

$529,995

$652,458

$730,665

358,957

387,078

177,603

198,342

262,087

65,122

95,159

81,500

$2,127

$2,222

$2,094

1,460

1,521

1,586

720

809

902

650

715

830

57

80

13

14

17

392

320

37&

179

THE

U.

147

129

S.

LABOR —Month

of

OF

L_

construction

alterations,

etc

ol

S.

January

DEPT.

OF

(in

millions):

(non.arm)

;_

construction

new

'

construction

building

dwelling units
and" alterations

Nonhousekeeping

725,514

6.780

omitted):

LABOR—Month

Private

784,166

663,873

Jan. 26
Jan. 26

freight loaded (number of cars)

501,956

*6.289

VALUA¬

nonresidential

Additions

747,662

Agt

6.894

PERMIT

BUILDING CONSTRUCTION—U.

/ASSOCIATION OF AMERICAN RAILROADS:

Year

Month

BRADSTREET.

AREAS
OF

(000's

Additions,

Total

Previous

TIIE

IN

Decernber

URBAN

Residential

727,933

(NEW)

residential

New

New

lievenue freight received from connections (number

Nonresidential
Industrial

.

_

___

building

(nonfarm)
'

__

Commercial

egtfDL

ENGINEERING

CONSTRUCTION

RECORD:

$309,273,000

$159,136,000

$235,102,000

an- -5l

106.358,000

242.20),000

69,701.000

156,215.000

Jan- 31

106,110,000

67,066,000

89,435,000

78,887,000

58,672,000

50,000,000

73,871,000

65,308.000

Social

an. ^1

construction
and

State

4 7,43o,000

17,066,000

15,564,000

13,579,000

Hospital

municipal

/an.

Federal

nonresidential

Religious

institutional

and

Miscellaneous
Farm

fiHuminous

anthracite

fieehive coke

Jan. 26

(tons)

(tons)
1

\

11,220,000

11,330,000

7,855,000

11,410,000

/an. 26

857,000

944,000

616,000

974,000

an. 26

Pennsylvania

147,200

148,000

122,000

159,600

Other

All

other

TEM—l!)3u-»9 AVERAGE

SYS¬

RESERVE

100

=

construction

an-

259

240

26

265

ELECTRIC INSTITUTE:

eb.

kwh.)

(in 000

output

7,572,432

2

Other

(COMMERCIAL

FAILURES

INDUSTRIAL)—DUN

AND

142

164

/an. 31

159

126

.

Sewer

and

Jan. 29

4.131c

$52.72

fie rap steel

4.131c

4.131c

Jan. 29

$52.72

4hg

$47.75

CIVIL

naval

(E.

&

Htraits tin
4 *id

(New York)

(St. Louis

Klnc

(East St. Louis)

Jan.
Jan.
JanJan.

at

)

24.200c

24.200c

24.200c

at

—

27.425c

27.425c

27.425c

24.42oc

30
30
30

121.500c

121.500c

103.000c

19.000c

19.000c

19.000c

Feb.

Aa

Feb.

--:

18.800c.

18.800c

16.800,

30

19.500c

19.500c

19.500c

17.500c

96.65

96.53

96.39

imbitc

Utilities

OF

116.02

f

103.16

-114.46

114.08

112.75

119.82

5

113.12

112.75 S

111.62

118.30

108.34

107.80

106.92

115.43

'

Feb.

Group

i

>£idustrials Group

MHWJDY'S

YIELD

and

103.4-7

103.30

5

106.04

105.34

682,593

326,990

332,731

220,590

584,299
300,704

154,928

106,400

283,595

$20,610

$19,933

13,488

13,211

$20,097
13,459

7,555

102.13
'

109.79

109.42

108.34

5

113.50

112.75

credit

7,400

RE¬

short-term

31:

___:

-

4,039

—.

credit'

Loan

Charge

119.20

4,587

1,332

1,110

1,067

2.39

PRICE

2.73

2.74

3.18

3.20

3.27

2.85

2.93

2.95

3.02

2.66

5

3.00

3.02

3.08

2.71

5

3.26

3.29

3,34

2.88

Cereals

''eb.

5

3.54

3.55

3.62

3.15

3.39

3.43

3.52

3.01

Dairy

5

3.18

3.20

3.26

2.86

2.97

2.98

3.02

2.69

Fruits

^eb.

5

452.0

45G.7

462.8

533.4

FOR

MODERATE

Eggs

5

INDEX

Meats

5

'eb.

INCOME

FAMILIES
loo

All

IN

LARGE

Adjusted

—

CITIES—

of

as

Dec.

15:

items

All

189.1

■

«'•

.

,

,,

fm'-%

,

.

Rent

4MLTJONAL PAPER-BOARD ASSOCIATION:
i'trders received

(tons)

iToduction

(tons)

♦ ^rcentage

Jan. 26

of activity

193,052

153.591

26

201,284

204,021

203,923

85

85

86

104

376,678

an.

392,482

333,224

electricity

Gas

242,721

.'an. 26

at end of period

Fuel,

204,050

Jan. 26

_—

Unfilled orders (tons)

187.558

and

Other

refrigerators

and

electricity

AND

AVERAGE

=

DRUG

PRICE

REPORTER

132.9

144.8

142.8
i

97.5

97.4
206.3

201.7

156.3

151.5

210.2

210.8

203.2

169.1

furnishings

168.4

160.6

12,915,000

l

_;

Miscellaneous

PAINT

195.5

138.9

156.3

_____

House

mt.

184.9

207.6

206.6

fuels

Ice

659,349

158.5

186.7

144.9

;Clothing

327.5

158.5

186.4

sweets:'-.

346.6

157.8

'

oils

and

203.9

206.8

and

Sugar

249.4

223.5

139.2

Fats

•

194.0

241.8

236.5

vegetables.-

253.8

210.4

346.8

and

177.7

278.6

216.7

products

178.8
216.3

190.2

213.2

bakery products..

231.4

190.4

274.6

and

188.6

232.2

foods

Beverages
j

-

6,638
4,239

c

1,100

credit

?eb.

^

■:$

Service

?eb.

'

5,555
.

1,422

?eb.

1

4,190

1,435

'eb.

MOODY'S COMMODITY INDEX

v'K-'

Single payment loans...

2.73

1

6,722

7,122

_________

7,904
4,126

3,778

5.861

5,933
credit

accounts

5

I Railroad Group
Public Utilities Group
f adustrials Group

4,100
3,300

>

3,516

Noninstahnent

115.82

113.70

Dec.

of

Automobile

112.93

5

FEDERAL

Estimated

as

Other

110.34

103.80

THE

OF
—

credit

5

2

1

$1,266,892

502,183

487,659

credit:

consumer

Sale

5

A
I ;aa

$829,173

723,139

of

,

:

millions

eb.

^eb.

corporate
—

6

municipal

SYSTEM
in

CONSUMER

Aaa
Ua

62

4

EN¬

Month

—

omitted):

GOVERNORS

'eb.

Average

12

68

$1,210,798

NEWS-RECORD

—

construction

Instalment

AVERAGES:

DAILY
U. S. Government Bonds
BOND

5
5

Feb.

55

59

CONSUMER CREDIT OUTSTANDING—BOARD

101.43

109.42

Feb.

——

Group

95

11

development

Federal

183.000,

109.79

5

Feb.
Feb.

A

Daa
liaslroad

95

48

17.000c

18.800C

State

Total

Feb.

24

10

enterprises

construction

SERVE

Average corporate

37

4

and

service

construction

credit

trIOODY'S BOND PRICES DAILY AVERAGES:
VJ
S. Government Bonds

4CJ

24

149

45

public

(000's

S.

Public

24.200c

Jan- 30
Jan. 30

at

4-^od

U.

Private

at

36
112

34

24

■;

water

GINEERING

M. J. QUOTATIONS):

(New York)

225

86

116

140

building___

facilities

ENGINEERING CONSTRUCTION

Total

Electrolytic copper—
Domestic refinery at
E::port refinery at

260

32

_________

public

January
EflZTAL FRICES

29

4.131c

$52.69

$42.00

$42.00

$42.00

_Jan. 29

(per gross ton)

,

$52.72
1

508

66

75

and

other

All

PRICES:

J'inished steel (per lb.)
iron (per gross ton)

institutional

and

Conservation

COMPOSITE

5

701

33

Miscellaneous

riBON AGE

6

128

Highways

BRAD-

&

STREET, INC.

34
169

267

_____

,

nonresidential

Military

26

32

67

;

___

Hospital

7,099,385

7,148,620

7,616,421

34

239

667

;

building
Nonresidential
building.____
Industrial

f aectric

13
72

229

<

6

.

...

28

81

305

47

29
...

Educational
f fDISON

17

30

i_

______

Residential

278

39

122

203

.

utilities

private

19

32

80
...

h

public

7

262

__

.

Telephone and telegraph

^

INDEX—FEDERAL

SALES

STORE

_______

utilities

Railroad

Public
DEPARTMENT

...

construction

Public

(U. S. BUREAU OF MINES):
coal and lignite (tons)

ODAL OUTPUT

...

37

25

23

recreational

23

32

•

and

75

127

31

...

104

28

____

38

123

building

69
31

52

9

Educational

31

construction

Private
Public

$212,468,000

Other

•

90

Jan. 31

Vi'otal U. S. construction

55-

38*

Warehouses, office and loft buildings.
Stores, restaurants, and garages

ENGINEERING NEWS-

—

of that date:

287,210

of

DEPT.

.

building

New

40,378,000

42,684,000

39,716,000

38,725,000

S.

November

6,483,000

21,649.000

Jan.
JanJan.
Jan—Jan-

(bbls.)

(bbls.)

Distillate fuel

6,065,700

Jan. 26
Jan. 26
Jan- 2(j

stills—daily average

output

IN

U.

—

6.204,100

6,196,500

6,194,300

Jan- 20

fjasollne output (bbls.)
♦ lerosene

TION

^

daily

—

gallons each)

are as

either for the

Month

BUSINESS

96.7

UNITED

2,079.000

are

Latest

BUILDING CONSTRUCTION

/3S0ERICAN

of quotations,

cases

Ago

98.3

100.1

Thursday, February 7, 1952

.

production and other figures for the

cover

Year

Week

.

Dates shown in first column

month available.

Week

of capacity)

operations (percent

or

statistical tabulations

or

Latest

STEEL INSTITUTE:

/&IERICAN IRON ANI)

latest week

.

t

96.8

INDEX —1926-36

100

''eb.

1

145.5

145.9

147.1

EMPLOYMENT AND

152.2

OF

PAYROLLS—U.

LABOR—REVISED

DEPT.

S.

SERIES—Month

of

November:

ITFOCK TRANSACTIONS FOR THE ODD-LOT ACCOUNT OF ODDLOT

DEALERS

AND

SPECIALISTS

EXCHANGE—SECURITIES

Odd-lot sales
Number

ON

EXCHANGE

by dealers (customers'

TIIE

N.

Y.

All

STOCK

Durable

COMMISSION:

of orders

37.290

Jan. 19

Number of shares
Dollar

40,248

26,929

50,996

'an. 19

value

1,056,792

1,122,380

774,374

$49,687,391

$54,174,482

$34,369,715

All

1,547,897

fan. 19

^

Odd-lot purchases by dealers (customers' sales)—
Number of orders—Customers' total sales

$68,725,311

28,899

27,542

24,487

All

51,227

short sales

Jan. 19

225

122

471

Customers'

other

sales

Jan. 19

203
28,696

27,317

24,365

50,756

Jan. 19

806,863

770,803

678,350

1,467,551

of shares—Total sales

Number

Customers'

short

sales

Jan. 19

7,554

7,701

4,316

other

sales

Jan. 19

799,309

763,102

674.034

$35,065,905

$32,714,977

$27,959,465

182,340

212,650

182",340

2~12~650

47~5~230

Dollar

value

Short

sales

Jan. 19

sales

Other
fiound-lot

*

159.2

*434.2

414.&

15,899,000

♦15,948,000

15,675,000

8,987,000

8,928,000

8,664,000

6,912,000

7,020,000

7,101,000

$67.36

*$65.81

of employees in manufac¬
industries—

goods

;

;

goods

AVERAGE

ESTIMATE

All

A«#26

=

—

U.

S. DEPT.

462,270

537,570

298,940

527,470

All

175.9

Foods

190.8

jan. 29

196.1

196.4

195.4

228.7

237.9

198.3

185.8

186.2

189.2

264.3

266.9

265.5

165.2

*165.0

165.4

171.7

157.5

*157.8

159.7

182.3

Textile products
Fuel and lighting materials

jan. 29
Jan. 29

138.9

138.9

138.8

136.4

Metals and metal products

jan. 29

192.6

191.5

190.9

188.0

Building materials

Jan. 29

222.7

'

and

^Revised.

tNot

allied

products

_Jan. 29

.

132,7

223.7

224.2

227.7

346.1

Chemicals

^Includes 478,000 barrels




of

68.32

58.44

41.2

*40.5

41.4

*41.5

42.2

*39.2

40.5

$1,635

*S1.625

1.724

*1.711

1.619

1.511

*1.506

1.443

$1,292,101

$1,278,851

$1,357,729
120,670

1

earnings—
manufacturing

346.5

t

133.5

137.7

145.7

YORK

As
-

*

of

i

foreign crude

runs.

goods

31

firms

Total

of

Credit

goods

•

$1,543

on

Total

of

omitted):

(000's

carrying

margin

customers net

extended

Cash

EXCHANGE—

STOCK

Dec.

Member

to

customers'

value

of

Market

value

of

accounts—

balances—_—

banks in

free

listed
listed

borrowings

debt

customers

hand and in

Market

Member

available.

'

40.0

goods

Nondurable
NEW

184.2

262.5

Jan. 29

foods

$63.83

*59.04

257.0

193.7

Jan. 29

:

*71.01

42.1

goods

Durable

189.6

235.6

Jan. 29

Meats

AB commodities other than farm and

All

182.1

Jan. 29

—

188.9

177.2

Jan. 29

Grains

Livestock

72.58
60.44

manufacturing

Hourly
176.3

Jan. 29

—

OF

goods

Nondurable

OF LABOR—

;

.—

Farm products

DEPT.

S.

Hours—

1<I0:

Ail commodities

U.

goods

Durable

PRICES, NEW SERIES

—

December:

manufacturing

Durable

by dealersJan. 19

of

HOURS—WEEKLY

^Earnings—

Nondurable

cf shares

PPHOLESALE

f

*158.7

number

FACTORY EARNINGS AND

Jan. 19
.Jan. 19

—

purchases

Number

,

157.7
434.1

»_

manufacturing

LABOR—Month

*3ound-lot sales by dealersNumber of shares—Total sales

,

7,198,000.
5,831,000

indexes—

Nondurable

475,230

201,000

5,704,000

njanufacturing

Durable

$58,418,339

201,000

13,029,000

7,293,000

5,584,000

manufacturing

turing
All

1,450,059

Jan. 19

*12,997,000

7,331,000

goods

17,492

Customers'

workers)

Payroll indexes—
Estimated

Jan. 19

Customers'
'

Employment

.

(production

goods

Nondurable

'v

purchases)—

manufacturing

on

credit

39,640
U.

balances—_
_______

bonds
S.

394.301

399,013

Govt,

823,773

805,242

890,288

109,483,613

106,308,738

95,634,349

shares—
TT.

40,804

381,101

S

97,150,506

93,607,269
115,951,939

issues—

Member borrowings on other collateral

95,761

;

70,709

754,218

682,138

210,921

698,226

Volume 175

Number 5088

.

.

The Commercial and Financial

.

Chronicle

Business and Finance
'

I

Continued
mills to

from

There

"

r.

in

'

hummel

a.

subscription television, which will permit the charging
of a fee for the home
viewing of costly entertainment.

President, Lone Star Cement Corporation

Opportunities for export
pulp shortages abroad.

In

increase due to

to

the

cement

in

decline

industry

the

1952

indicate

prospects

residential

sives, cellophane, rayon and other synthetic fibres which
require wood pulp as a basic raw material. Estimates

building, a decline in private
construction other than residential, and an increase in
industrial building chiefly as a result of the expanded
defense spending, and a continuation of work of military

of available wood

nature.

will

be

decided

a

increase

the

of

use

dis¬

solving wood pulps used in the manufacture of explo¬

pulp supply as set up by the Depart¬
Bureau of Census, include both
chemical wood pulp used for dissolving purposes and
for paper making.
The chemical wood pulp producing
ment

of

limit to meet the increased

the
1952

will, in

opinion, be

of great activity both
in durable and nondurable goods.
Earnings will gen¬
erally be less due to the tremendous increase in Federal
my

a year

taxes.

Shortages of strategic materials, particularly met¬
chemicals, may seriously affect operations unless
the government agencies administering the controls on
these items show better sense than they have to date.
als and

1952 will be another

will do it the

we

of "muddling through" but

year

same

h.

r.

have before.

we

as

hoge

President, The Clark Controller Company
The Control Industry covers a considerable scope of
light duty starting equipment and actuating devices up
to and including very complicated
processing systems

that

custom built to individual orders. On

are

most

the

of

this field

companies

have

able backlog of
are

orders,

Since

we

business

nearly

of

all

the manufacturers in this field must
have

hand

on

considerable backlog.

a

Most of the orders in this

should be of
not

to any

confident
H.

Billed

Hoge

orders

well

grounded

opinion

Sales

production

increase

to

in

Net

as

in

our

There is

of 1952.

year

con¬

industry that
during the

our

received may have passed their peak

early part of 1951. Nevertheless, we do not foresee any
sign of a substantial decrease in orders received in the
immediate future.

We would expect business to continue

coming in at

a very high level but probably not in some
unprecedented volumes experienced in 1951.

of the

Therefore,
that

the

you

gather from the above comments
business activity in the Industrial

presents

an

optimistic picture for 1952.

william

howlett

possible under
year

a

our

of

"guns and butter"

economy.

good

extremes—very

business

during the first quarter while manu¬
facturers

were

and

purchasing;

third

manu¬

resistance.

A recovery came
the fourth quarter.

1952
ized

should

and

Under

less

the

CMP

fourth

plus

about

as

P.

Howlett

economy has

ad¬

prod¬

new

part of the gap caused by the shortage of

certain critical metals.

tant

to

saving
in

1952

spend

at

was

will

an

all-time

the

find

unnecessarily.

will

in

still

customers

There

reaction to threats of shortages and
when

high

be

1951.
reluc¬

no

1952 will be

a

mass

year

aggressive salesmanship will be needed.

Generally, business will proceed cautiously but with
sensible calm

ing

and

wide-swinging

government
about

controllers

business

plans
will

conditions,

of

have

a

normal

manner

1951.
a

Naturally,

great

but within

deal

their

and should find 1952

ably profitable year—before taxes.




a

the sporadic produc¬

to

the
say

narrowed

operations the businessman will be able to

scope of

ceed in

attitude rather than

a

pro¬

reason¬

secure

and

decision

a

make

television

communities
from

where

advertising

Price tags on many products present still another par¬
We have been subjected to accelerated inflationary

than a year. Wages and other costs have
Official figures indicate that the public
has more money to spend than ever before. A broad pro¬
gram of price control has been put into effect, presum¬
ably to prevent further price increases. Yet many prod¬
ucts—rugs, oils, fats, and certain types of hard goods—
are
offered today at figures well below their ceiling
prices.
more

rapidly.

On the other hand, the cost of living index goes
rily upward in spite of price controls.

mer¬

As for my own

industry, radio and television: There
slump in television sales last spring, fol¬

sharp

The market for radio

receivers, which was supposedly
television several years ago, is very good. In
the sale of some types of radio sets has held to re¬

markably high levels.
1952 is dependent to a large
the availability of materials and upon the

Communications

Federal

that

the governmental

Commission

"thaw" will

has

come

indi¬

early in

this happen on schedule, and should ma¬

Should

television

the
not

the

stations

our

present TV markets,

simple reason that a high degree of saturation
prevent astonishing expansion in recent years
automobile, household appliance, and our own

radio industries.

build

as

many

radio and television receivers in 1952

this

past year. Consequently, production may fall
far short of demand, particularly if the FCC unfreeze
occurs early in '52.
as

If

an

accelerated

rate

of

rearmament

is forced

upon

then civilian production will slip below the present
Defense work will increase.
Fortunately, the
radio and television industry is capable of very rapid
conversion to the production of military equipment.
Another development that may be felt in 1952 is sub¬
scription television. All the signposts point to it.
Television in the home is proving to be such a deadly
competitor for sports promoters, that already many im¬
portant sports events have been withheld from TV be¬
cause advertisers could not pay the'prices that promoters
us,

outlook.

were

forced

to

ask.

Movie

attendance

has

declined

television became an important force in
American life, but no advertiser has been able to pay
the cost of presenting new, topflight motion pictures on
the vidio screen.
The only solution to the problem is
steadily since

exi^fr

inauguration

f.

wyman

During the past five
located

in

years 221 new industries have*
in existing plants, some in new
And at the beginning of 1952 a number
o£$>

Maine,

some

concerns

considerable

show¬

were

in

interest

Maine

industrial

ther

sections, the fur¬

growth of

is

Maine

partially dependent upon the indus¬
trial building situation with its at¬
restrictions

credit

on

and

however, two
working in the

are,

best interest of the State.

First, the diversification of indus¬
try has made itself felt increasingly
each

since the end of the war
many indications that

year

there

are

this trend will continue. Maine's
omy

econ¬

is being considerably strength¬

ened

these

through

adjuncts

to

its

Wm. F. Wyman

major basic industries which tend to
a
steady rate of employment through

create

a

wider

variety of industries and through a steady market for
the manufactured items by such parent companies as
General Electric Company, Sylvania Electric Products,,

Division of Union Carbon & Carbide,
the like which have located branch,
operations in Maine in recent years.
Second, is the State's recognition of the fact that some¬
thing must be done to prevent the possible loss of some
Bakelite

Inc.,

Ponds Company and

industries to

the

mote

of the

other sections

further

country and to pro¬

of industry here.

expansion

Steps are being taken to meet these situations by co¬
operative activities of State and local government^
management and labor.

-

For

some
years the Maine Development Commission,
actively promoted the State's industrial advantages
through various methods and with considerable success,
A group of bankers, businessmen and interested citizen#
formed the Development Credit Corporation of Maine,
an
organization designed to aid the expansion of both
existing and new industries by providing a source a?
risk capital not readily available through normal bank¬
ing channels.
Action on the community level has been most satis¬
factory, with cities and towns aiding both new and exist¬
ing industries to new locations through cooperative*
construction of new plants of modern design. In fact*
management and labor, State and local governments,
business and private citizens are all aware of their stake
in Maine's
industrial future, and
each is doing hisr

part to

make this future

good

a

one.

Perhaps defense orders should be listed as an -advan¬

tage," since they will play an important role in the in¬
dustrial economy for 1952. Metal trades and shipbuilding,
in

particular,

are

defense orders,

sidered

devoting practically full production to

but, in general, such work must be con¬

temporary

and

apart

summarizing

some

from

normal

industrial

activity.

Any prediction for 1952 must, of course, be further
qualified by the uncertain international outlook. If ma¬
terial restrictions are not relaxed we will not be able
to

smaU

has

killed by
fact

to

alone.

william

tendant

adox.

a

many

able

President, Central Maine Power Company

and

was

in

be

not

service to the public.

ceivers, etc.—are today in abundant supply.

risen

available
will

It's quite possible that 1952 may mark the
of this great new

factors

forces for

service

stations

revenues

important

of

More

commercial

There

did
William

establishment

of subscription television
service, and hope to have hearings anel
long before 1952 has run its course*.
Should subscription television be authorized and estab¬
lished, it will bring a new era of prosperity for tho
motion picture industry, professional and
college sports*
the legitimate theatre, and the
broadcasting industry.
It will also materially increase the demand for television
receivers in existing and immediately potential
markets,
a

as

materials.

for

of

justed itself, and that substitute materials and

Indications

paradoxes

by uncertainties.

gloomy talk about saturation of

until late in the

However, it appears that much of the

Consumer

economic

construction, there could be many
on the air before our youngster
year is out.
The opening of these new markets will un¬
questionably provide a sharp increase in the demand for
television receivers.
Moreover, I am not impressed by

future

applying to the Federal Communications Com-*

are

manufacturing industries, for example. Steel
is generally considered to be in short supply and is under
strict NPA allocations.
Yet, some of the best minds in
the steel industry can see no shortage ahead. Moreover,
many of the products which use large amounts of steel
—such as automobiles, heavy appliances, television re¬

new

shortages will probably develop
the defense program reaches a high level.

ucts will fill

with

Take the

1952.

scarcity.
shortage

and

material

sources

cutback.

1952

confused

terials be available for

Inventories,
supply, kept
businesses operating without a

serious

is

present

The

stabil¬

We

mission for the

.

while the future is clouded

cated

again

to television.

As in most other
more

markets.

quarter of 1951.

extra

most

business

hesitant

not too serious

was

in

find

higher taxes,

controls,

The

usual.

commercial

locations.

even

unfreezing of television grants to permit the construc¬
tion
of
new
stations
and
the development of
new

found

facturer slowdowns, distributors' in¬
ventories well stocked and consumer

in

these, the role of prophet is

hazardous than

extent upon

the

quarters

slower with

conditions much

late

like

The industry outlook for

optimistic, distribu¬
building inventory, and

consumers

second

times

limited

a

method of subscription televK"
area.
The results showed conclu-*

our

sively that the public wants such a service and is willing
and eager to pay for the premium entertainment it
brings

ing

President, Zenith Radio Corporation

were

were

Mcdonald, jr.

it is well below last year.

tions

tors

f.

Present volume is satisfactory, but since
production is restricted by allocations of raw materials

highlighted by a return to "business nor¬
At least, the return will be to as stable condi¬

Phonevision,
sion, in the Chicago

buildings.

of the country.

1952 will be

was

1952 prospects.

by a strong recovery that began in August and
has continued at widely varying rates in different parts

malcy."
1951

on

lowed

President, Nesco, Inc.

as

effect

an

of

other national

can

expected

Control field

serious

e.

Therefore, I feel

insofar

concerned,

continue

throughout the entire

siderable

that

are

should
field

great degree

if the present business activities

should slow down.

Robert

backlog

character that would

a

be canceled

even

too

In

have been

incoming

it becomes necessary to borrow to
However, it is doubtful if this situation will have

build.

in

going through
a
period of attempting to raise our
productive capacity to the demands
of

particularly when

of which

some

well

participation of the cement industry in available
business from the standpoint of number of units sold
may well decline to a point approximating 10% of 1951
volume.
If this takes place it may be necessary to
strengthen our price structure, in which event our dollar
sales'may compare favorably with 1951.
Each year following the close of World War II there
has been a persistent urge on the part of all to build—
this includes residences, factories, public buildings, high¬
ways and other types of construction. An extensive back¬
log of needed work still remains but the erosion of earn¬
ings through taxation has injected a note of caution,

consider¬

a

inflationary trend persists, the

The

long delivery promises.

on

matter of fact if the

a

actual dollar volume for construction purposes may
exceed 1951.

average

engaged

hand

on

an

ing the last quarter of 1951; quite obviously this will
be felt in the early months of next year. This does not
necessarily mean that the dollar volume will be off—
as

requirements.

Early in 1951 Zenith conducted
test

A substantial decline occurred in contract awards dur¬

Commerce,

facilities in both United States and Canada will be taxed
to

a

41

Speaks Alter the Turn of the Year

.

7

page

supply these products.

will continue

(601)

Briefly

of

particulars

Maine's

industrial situation, we find that consistently
high levels were generally maintained throughout 1951
and might well be expected to continue throughout 195?,
in recreation, agriculture, sea and shore products, pulp
present

wood products, metal trades, shipbuilding,
specialties as electronic devices, plastics etc.
Cotton and wool textiles and the shoe industry suffered
cutbacks in Maine as elsewhere in 1951, but had re¬

and

paper,

and

such

covered by the

year's end and expect to show some im¬

provement in the first quarter of 1952 and even more

in

the second quarter.

Maine's industrial situation in recent years has shown

steady growth, diversification and
resulting

favorable

effect

upon

While forecasting the future

is

a

modernization with a
payroll

best, Maine's industrial outlook, based on
past performance together with the
directed

toward

the

State's

stabilization.

precarious business at

development,

optimistic prediction for the future.

its excellent

efforts

now

being

warrant ar».

42

(602)

The Commercial and Financial Chronicle

.

.

Thursday, February ,7, 1952

.

* indicates

Securities

Now

★ A. M. D. G. Publishing Co., Inc.
Jan. 30 (letter of notification) 400 shares of $6 cumula¬
tive preferred stock (par $80) and 8,000 shares of com¬
mon
stock (par $1) to be offered in units of one pre¬
ferred share and 20 common shares.
Price—$100 per
unit.
Proceeds—To publish new magazine, "Jubilee,"
the first national picture monthly for Catholics.
Office
—150Waverly Place, New York 1,4 N. Y. Underwriter—

in

Registration
David V. Shapiro.

(Stone

Webster

&

Jan.

(The

Oliver
(Blyth

Co.,
and

registration statement at $3.50
transaction, to cancel
the transaction and refund
$3.50 per share, or to refund
$1.50 per share to those desiring to retain the stock.
Price—$2 per share. Underwriter—None. Proceeds—To
repay loans and other liabilities and for exploration ex¬
/. •

'

.

28

(letter

stock (par $1).
A. Wads worth,

American Fire & Casualty Co., Orlando, Fla,
Dec. 19 (letter of
notification) 11,100 shares of common
stock (par $10). Price — $27 per share. Underwriter

—

Guardian

Credit

purchase

of

Corp., Orlando, Fla.

securities.

Office

—

Proceed

American

—

Building,

Hirshberg, Inc.,

Basic

63,585 shares of

be offered to

common

share.

common

stock

as.

Underwriter—None.

of Feb. 6. Price

Proceeds—To

one
—

to

Co.)

$10

(Morgan

Stanley

Co.;

&

Robert

W.

Baird

&

Common

&

Co.,

Western

RR

Equip. Trust Ctfs.

Koppers Co., Inc

Common
(First Boston Corp.)

February 20, 1952

Cinerama, Inc.

Debentures

(Gearhart, Kinnard & Otis, Inc.)

Russell

Reinforced

Plastics, Inc
Securities

(Bids

..Common

EST)

noon

February 25,

1952
Common

(Equitable Securities Corp.)

February 26, 1952
(Bids

10:30

Bonds

CST)

a.m.

Denver & Rio Grande Western RR
(Bids

Bonds

stock

to

(Eids 11:30

Price—$150

share.

per

subscription by

cer¬

(Lee

if Botany Mills,

W.

P.

Brooks

&

(letter of notification) 500 shares of 5% cumula¬
tive preferred stock
(par $25). * Price—At market (esti¬
mated at $13.50 per
share). Proceeds—To Otto E Kuhn
a

Trans

World

1952

lOffering

..Common

stockholders)

to

February 28, 1952

stock.

March
United

if Burnham Chemical Co., Oakland, Calif.
Jan. 29
(letter of notification) 15,000 shares
stock. Price—$1 per share.
Proceeds—To aid
ing Congressional legislation for the relief of
pany.,,. Office — 5653 College Ave., Oakland
Underwriter—George B. Burnham, 132 Third
Washington 3, D. C.

States National

Fenner

&

March

Merrill Lynch,

Pierce,

newv10-cent

&

Common
Co.)

Light Co...:
(Bids

to

be

March
Detroit

Steel

&

Inc.;

Van

Weedon

Alstyne,
&

Co.)

Detroit .Steel Corp....
(Van Alstyne,

Noel

Crowell,

6,

Noel

&

Co.;

'

l"

Weedon & Co.)

.....Common

...

p.m.

23

\

&

11,

1952
EST)

be

March 25,
to be

1952

31,

Bonds

Boston

Pittsburgh

San Francisco

Private IVires




Chicago

Cleveland

No underwriting)

Co
invited)

May 20,

1952

Co

(Bids
to

all

offices

share

for

be

each

10

Co.

(2/8)

shares held

filed

with

an

(2/26)

$4,000,000 of first mortgage

and Harris, Hall & Co.

bonds, series

(jointly); Smith.

(Inc.)

(CST)

Bids—Ex¬

Feb. 26.

(2/19)

on

filed

$4,000,000 of 20-year sinking fund deben¬

invited)

1, 1972.

news/facilities.

Price—To be supplied by amend¬
construction and acquisition of

For

—

Underwriters

—

Morgan Stanley & Co.,

York, and Robert W. Baird & Co., Inc., Milwaukee,
'

if Chain Belt Co.

(2/19)

new"Jhare for each six shares held on Feb. 19; rights to
Price—To be supplied by amend¬
Proceeds—To

retire

$2,100,000

of

2%

notes

and

expansion program. Underwriters—Morgan' Stanley
C6f, New York, and Robert W. Baird & Co., Inc., Mil¬
waukee, Wis.
&

Cinerama,

Inc., New York

(2/20)

Jan.

|&£iled $1,000,000 of 5% convertible debentures due
1957.QPrlce—100% of-principal amount. Proceeds—For

production and exhibition equipment.
..Debentures

to

one

if Chain Belt Co.

•

.Bonds
be

National Fuel Gas

Gas

Su¬

for
......Common

April 1, 1952
to

maturing notes

expire.' about March 6.

1952

(Offering to stockholders.

(Bids

or renew

Electric &

a.m.

ment.

Power

common

Proceeds—For

share.

Jan#30 filed 81,512 shares of capital stock (par $10), to
be offered for subscription by stockholders at rate of one

invited)

Mountain States Tel. & Tel.-Co

Penn

per

Barney & Co.; Harriman Ripley & Co., Inc.

Wis"P

Common

invited)

Southern California Gas Co....

West

of

ments Proceeds

Bonds & Preferred

noon

to

March

Illinois

tures due Feb.

March 18, 1952
Co.__
—..Bonds &

(Bids

Price—$7.50

Co.,Inc.; The First Boston Corp., Central Republic Co

(InCJ>:

New*

(Bids

par).

J982. Proceeds—For construction program and to
repqjfjjank loans. Underwriter—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart

Jarbr-30

EST)

Metropolitan Edison Co
(Bids

of

1952

Schering Corp.
3:30

snare

stock; and for each share of $5
stock held, 50 shares of the new stock. Un¬

pected,up to 10:30

March
(Bids

■■

....Preferred

& Co.;

5%

$100

ore

due

1952
Bonds

Co.

Crowell,

one

par common

Central Illinois Electric & Gas Co.
Jan.

Corp

Stuart

held,

for

at fate

Bonds

invited)

5,

stock

Underwriter—None.

8

March 4, 1952
Central Power

preferred

oversubscription privilege; rights to expire about Feb. 21.
Price—To be supplied by amendment.
Dealer—Man¬
agers—Stone & Webster Securities Corp. and Allen &
Co., both of New York. Proceeds—For new construction
and to repay bank loans.

1952

&

7%

of

Jan. 18 filed 64,000 shares of common stock (par $15) to
be offered to common stockholders of record aoout Feb

Beane)

3,

com¬

(1)

bond,jone share of 5% preferred stock and

Central

Dairies, Inc
(Hirsch

the

18, Calif.
St., S. E.,

Buildings Co., N. Y.
$5,527,800 of 5% general mortgage 30year«4ncome bonds due 1982; (2) 55,278 snares of 5%
cumulative convertible prior preferred stock (par $50);
and A3) 772,240 shares of common stock (par 10 cents),
all to be offered in exchange (under a plan of recapital¬
ization) for presently outstanding stocks as follows: For

1, 1952
Bank,

(Probably Blyth & Co., Inc.;

of capital
in secur¬

working capital. Office—1901 Winter St.,
perior, Wis. Underwriter—None.

Common

—

Philadelphia

to

Bush Terminal

and

Portland, Ore.

Interstate Power

New York

postponed.

$100 each). Proceeds—To retire

.Equip. Trust Ctfs.
CST)

noon

March

(letter of notification) 15,000 shares of
common
Price
At market.
Proceeds —To
Harry and

improvements

date

ic Central Cooperative Wholesale, Superior, Wis.
Jan. 29 (letter of notification) $200,000 of 4% promis¬
sory 'notes to mature in six years (in denominations of

Chicago, Milwaukee, St. Paul &

★ Bowman Gum, Inc.
Jan. 28

and

Offering

working capital. Office—312 So. 15th Ave., Phoenix, Ariz.

Airlines, Inc

director.

Underwriter— None, but
Goodbody & Co.!*
John P. White & Co. and
P. F. Fox & Co. all of New
York, will act as brokers.

additions

equipment.

and

stoclT (no

(Halsey,

Jan. 23

plant

Jan.~"28

Co.)

Proceeds—Fur

Inc.

Underwriter—Kidder, Peabody & Co., New

Proceeds—For

if Capital Feed & Seed Co., Phoenix, Ariz.
(letter of notification) 9,950 shares of

.Preferred

Higginson Corp.;

State of Pennsylvania

building pro¬
gram.
Office—857 W. North
Avenue, Pittsburgh 33 Pa
Underwriter—None.
'

of

derwriter—None.

.Preferred
EST)

a.m.

Erie Forge & Steel Corp

Daitch Crystal

be offered for

3,

stock

par common

invited)

Delaware Power & Light Co

working capital. Office—1285 Rollins

employees—only in the

Birmingham

1951, filed 300,000 snares of convertible pre¬
(par $100).
Price—To be supplied by

5,

ferred

each-share

Central Illinois Electric & Gas Co

Engineering Co., Inc., Pittsburgh, Pa.
(letter of notification) not to exceed 400 shares

of common

North

Ave.,

Burlington Mills Corp.

Jan. 25 filed

Mississippi Valley Gas Co.____—

★ Bloom

tain key

First

Corp.)

Equip. Trust Ctfs.

7

Jan. 31

Office—2130

(Lids to be invited)

(Bids

Road, Burlingame, Calif.

•

York.

Pacific RR.

retire debt and for

share).

amendment.

Inc.-)

Delaware, Lackawanna &

per

Manufacturing Co., Burlingame, Calif.
(letter of notification) 85,000 shares of
capital
stock (par
$1), of which 10,000 shares are to be offered
first to stockholders and
75,000 shares offered publicly.
Price—$3 per share. Underwriter—None, but Davies &
Co., San Francisco, Calif., acts as agent. Proceeds—To

5,000 shares of class A
Price—At par ($50 per
Proceeds—To buy small first mortgages on resi¬

cumulative preferred stock.

March

Debentures

Benbow

Dec.

Inc., Birmingham, Ala.

(letter of notification)

Jan." 30,
1952, filed (by amendment) 2,500 shares
cumulative convertible preference stock (par SI00).

February 19, 1952

H.

effective Jan. 30.

28

dences.

Brothers)

Belt Co

share

P. Eells,
Jr., President, who is the selling stockholder. Statement

St., Detroit 16, Mich.

Co.,

if Burchweil
6%

Common

(Lehman

February 27,

(par $1)

stockholders at rate of

for each five shares held

Perkins, Inc., Detroit, Mich.
25,511 shares of common

(letter of notification)

"fc?;
.

Dayton Rubber Co

Refractories, Inc., Cleveland, Ohio

Jan. 2 filed

&

construction program. Under¬
Corp. and A. E. Ames & Co.,

February 18, 1952

(Aetna

Underwriters—Clement A. Evans & Co. and Norris
both of Atlanta, Ga.; and Johnson,
Lane, Space & Co., Savannah, Ga.
★

Davis

for

Ala. ^Underwriter—None.

Ga.
&

H.

Proceeds—To pay Treasury Bills and notes

incurred

1950 West Fort

Beane;

Common

Southern Ry.

★ Atlas Finance Co., Inc., Atlanta, Ga.
Jan. 28 (letter of
notification) 20,000 shares of common
stock (par $10).
Price — $15 per share. Proceeds—For
working capital. Office—262 Spring St., N. W., Atlanta,

&

& Curtis)

Keller Tool Co

Orlando, Fla.
294,000 shares of class A
capital stock, of which 194,000 shares will be sold by
company and 100,000 shares by New Jersey Loan Co.
Price—At
par
($1 per share).
Underwriter—W.
C.
Doehler Co., Jersey
City, N. J. Proceeds—For new mill,
tunneling and core-drilling expenses and working
capital.
-

Fenner

2

Jan.

For

Arizona Mining Corp. (Del.)
Dec. 28 (letter of
notification)

Pierce,

Webber, Jackson

(Paul

To be supplied by

—

stock*(par $1). Price—$4.25 per share. Underwriter—
Watling, Lerchen & Co., Detroit, Mich. Proceeds — To
construct and equip a magnesium rolling mill.
Office—

invited)^

Lynch,

February 14, 1952

Chain

.

Inc., Lake Worth, Fla.
of notification) 500 shares of common
Price—$18.50 per share. Proceeds—To E.
the selling stockholder. Address—Lock
Drawer 231, Lake Worth, Fla. Underwriter—None.
Jan.

Merrill

Paine,

per share who desire to rescind the

penses.
,..
•;
• '
••••••
if American Chlorophyll,

Inc.)

Jan.

Common
Inc.;

Price

writers—The First Boston

Brooks &

Debentures

Corp.
&,

debentures due

15, 1977 and $7,500,000 of 3%

Feb. 15, 1953-1957.

Inc., New York.

A. E. Ames & Co.,

be

(2/13)

(Province of)

$22,500,000 of 3%% sinking fund debentures

amendment.

Equip. Trust Ctfs.

iBids to

Feb.

previously
..Common

(Province of)

First Boston Corp.;

earlier

an

seria|ly

1952

Chesapeake & Ohio Ry

Underwriter—None.

American-Canadian Uranium Co., Ltd., N. Y.
Dec. 28 filed 850,000 shares of common stock
(par 10c).
Company will offer stockholders who purchased 10,327

due

CO.)

&

February 13, 1952
British Columbia

Underwriter—None.

★ Allied Van Lines Terminal Co., Chicago, III.
Jan. 31 (letter of notification) 27,500 shares of class A
stock. Price—At par ($10 per share). Proceeds—To con¬
struct terminal.
Office—1018 South Wabash Ave., Chi¬

shares under

Alien

(Aigeltinger & Co.)

(letter of notification) 50,000 shares of common
stock (par $1).
Price—$4 per share. Proceeds—For oil
and gas operations.
Office — 626 First National Bank

5, 111.

Common

Corp.;

February 11,

Bldg., Albuquerque, N. M.

Feb. 1 filed

United Canadian Oil Corp

Associated Oil Co.

(N. M.)

31

cago

Securities

issue

Office—4865 Stenton Avenue, Phila¬
Webber, Jackson &

^ British Columbia

February 8, 1952
Central Illinois Electric & Gas Co

additions

previous

items revised

delphia, Pa.
Underwriter—Paine
Curtis, Philadelphia, Pa.

NEW ISSUE CALENDAR

None.

^ Albuquerque

since
•

Business—Exploi-

tationpf the so-called "Cinerama Process," a new method
of

photographic

tures.

New

recording and projecting motion
Underwriter
Gearhart, Kinnard & Otis,

& ork,

—

on

a

"best-efforts basis."

pic¬

Inc.,

Volume 175

Coastal
Jan.

Number 5088

Commercial

.

.

The Commercial and Financial Chronicle-

.

Corp.

price will be less than $300,000). Price—To stockholders,
per share; and to public, $21 per share. Proceeds

10

(letter of notification) $200,000 of debentures
(in denominations of $300 and $1,000 each).
Price—
80% of principal amount.
Underwriter—Israel & Co.

.New

York.

Proceeds—For

working
Broadway, New York, N. Y.

1440

Columbia

Pictures Corp.,

capital.

$20.25

—-To expand

Office—

Fenimore Iron Mines Ltd.,
Toronto, Canada
4,007,584 shares of common stock (par $1)

New York

Jan. 25 filed
and

2,003,792 common stock purchase warrants of which
2,003,792
shares are to be offered to present common

selling stockholders.

Consolidated
22

mon

stock

stockholders at 75 cents per share

Uranium

a

Mines, Inc.
(letter ©f notification) 357,000 shares

Jan.

(par IV2 cents).

Price

of

Kansas

the

derwriter—None.

Cooperative Association,

City, Mo.

Feb.

in financing
construction of an agricultural nitrogen
fixation plant to be constructed and
operated through a

North Eagle and Pleasant
Sts.,

Underwriter—None.

stock

$1) to be offered in units of

Laboratories, Inc., N. Y.

(letter

of

notification)

4,751

of

at rate of

1

working
Office—305 East 45th St., New York
17, N. Y.

use in small loan
subsidiary branches.
Biscayne Blvd., Miami, Fla.

under Stock Purchase Plan.

mately $31

bank loans and for

repay

construction

•

Dayton Rubber Co., Dayton, Ohio (2/18-19)
30 filed 85,000 shares of common stock
(par 500).
Price—To be supplied by amendment.
Proceeds—For
Working capital. Underwriter—Lehman Bros., New York.
ic Deardorf Oil Corp., Oklahoma City, Okla.
1
(letter of notification) 50,000 shares of

Feb.

stock (par 10 cents).

15

—

Price—At market (approxi¬

Proceeds—For general corporate
West

First

St., Boston 6, Mass.

•

Keystone Custodian Funds, Inc., Boston, Mass.
28 filed 100,000 shares, series B-l; 25,000 shares,
series S-3; 50,000 shares, series S-2; 25,000 shares, series
K-2; 50,000 shares, series B-2; and 25,000 shares, series
S-3.

Price—At market.

Proceeds—For

expansion

Underwriter—The

program.

Price—25 cents per share.

Lindemann
Nov.

loans.

Proceeds

petitive

bidding.

Probable

bidders:

Lehman

Proceeds—For drilling expenses, repayment

working capital. Offering—Date not set

Gulf

Insurance Co., Dallas, Tex.
Jan. 21 (letter of notification) 5,000 shares of common
stock (par $10) to be offered for
subscription by com¬
stockholders at rate of

mon

one

share for each 34 shares

held; unsubscribed shares to be offered publicly. Price
—$45 per share.
Proceeds — For capital and surplus

construction and to repay
be determined by com¬

new

Underwriters—To

Ltd., Montreal, Canada
750,000 shares of common stock. Price—
share). Underwriter—George F. Breen

of advances and

funds.

Address—P.

O.

Box

1771,

Dallas,

Texas.

Un¬

derwriter—None.

Brothers;

(A. J.)

& Hoverson Co.

112,500 shares of common stock (par $1).
Price—To be supplied by amendment.
Underwriter—
Sills, Fairman & Harris, Inc., Chicago, 111. Proceeds—
Tp eight selling stockholders. Offering—Date indefinite.
•

Maine Public Service Co.

Jan.

15

being
one

filed

35,000 shares of

offered

first

to

Bids—-Tentatively expected to be received
(EST)

Feb. 26 at 600

on

Market.

up

Hawkeye-Security Insurance Co.
Nov. 5

(letter of notification) 2,000 shares of 5% cumu¬
lative preferred stock (par $50). Price—At market (cur¬
rently
$50
per
share).
Underwriter—Quail & Co.,

11:30

to

St., Wilmington,

Del.

• Detroit Steel Corp. (3/5)
Feb. 5 filed $25,000,000 of first
March

1, 1967.

Price

To

Davenport, la., and Becker & Cownie, Des Moines, la.
Proceeds
To six selling stockholders.
Office — 1017
Walnut St., Des Moines
9, la.
Offering—Temporarily
delayed.
—

mortgage

bonds

due

be

supplied by amendment
Proceeds—To retire $13,950,000 of presently
outstanding
first mortgage bonds and for
expansion program. Under¬
writers—Halsey, Stuart & Co. Inc. of Chicago and New
York; Van Alstyne, Noel & Co., New York; and Crowell,
Weedon & Co., Los Angeles, Calif.

ic Detroit Steel

—

Corp.

Hecla
Jan.
stock

$18

expansion

program.

non,

Power

Corp., Pittsburgh,

Graham

&

Pa.

&

McKin-

.
'

17

Proceeds—To repay bank loans and for new

Marshall

Field

ible preferred

&

Co., Chicago,

Price—$1.50

per

share.

Proceeds—For construc¬

Office—10 Light St., Baltimore
Underwriter—George F. Breen, New York.

2, Md.

Jamaica
Jan.

P. W. Brooks &

Co., Inc., both of New York. Proceeds—
To retire outstanding 5% first
preferred stock at par
($100 per share) and for general corporate purposes.

Water

Supply Co.

3T»»Qetter of notification) not to exceed 9,090 shares

of commoil stock (no par).
at
to

$22

share).

per

reduce

Price—At market (estimated

Proceeds—Together, with other funds,
Underwriter
Blyth & Co., Inc.,

bank loans.

stock

(par $100).

Price—To be supplied

•

McKay Machine Co.,

Jan.

Youngstown,

Ohio

14

(letter of notification) 6,399 shares of common
(no par), being offered to common stockholders of
Jan.

31

at rate

held; rights to expire

of
on

offered

be

share for each ten

one

shares

Any unsubscribed
employees.
Price—$25 per

March

to

17.

Proceeds—To pay for plant

equipment.
St., Youngstown, Ohio.

Office—767 West Fed¬

new

Merchants Petroleum Co.,

Inc.
(letter of notification) 4,000 shares of common
(par $1).
Price — At market (approximately 65
cents per share). Underwriter—Akin-Lambert & Co., Los
Dec.

17

stock

Angeles, Calif. Proceeds—To R. Wayne Hudelson, the
selling stockholder. Office—639 So. Spring Street, Los
Angeles 14, Calif.
•

Merritt-Chapman & Scott Corp.
100,000 shares of 5V2% cumulative convert¬
ible preferred stock (par $50). Price—$52.50 per share.
Underwriter—Reynolds & Co., New York. Proceeds—
For expansion program. Statement to be withdrawn.
Jan. 15 filed

Metals &

Chemicals Corp.,

Dallas, Tex.

Nov. 26 (letter of notification) 100,000 shares of common
stock (par 10 cents). Price—$3 per share. UnderwriterBeer & Co. and Binford, Dunlap & Reed, both of Dallas,
Tex.; Carlson & Co.; Birmingham, Ala., and Stuart Wyeth
& Co. of Philadelphia, Pa. Proceeds—To purchase and

install mill and for

mining equipment and working capi¬
Offering—Originally scheduled for Dec. 5, but later
withdrawn.
Corporation is now considering increasing
tal.

financing and is

statement
filed

for

it Metro,
Jan.

25

162,500

March

about

preparing
shares, which

now

full registration
is expected to be

a

14.

Inc., Baltimore,

Md.

(letter of notification)

3,150 shares of common
cumulative preferred stock
(par $10), the preferred and 150 of the common shares

to be offered in units of

10 shares of

share

Price

of

stock.

Of

preferred and on#

$9.17 per
share; and of units, $109.17 per unit. Proceeds — For
working capital. Office—808 E. Fayette St., Baltimore 2,
Md.

common

—

common,

Underwriter—None.

30

March

(3/11)

filed

1,

$7,800,000 of first mortgage bonds due
1982. Proceeds — For construction program.

Underwriters—To be determined by competitive bidding.
Probable

bidders: Halsey, Stuart & Co. Inc.; Salomon
Hutzler; Union Securities Corp.; Drexel & Co.;
The First Boston Corp.; White, Weld & Co. and Equit¬
able Securities Corp. (jointly); Kidder, Peabody & Co.;
Carl M. Loeb, Rhoades & Co.
Bids—To be received at
Room 2703, 67 Broad St., New York 4, N. Y., up to noon
Bros.

&

(EST)

on

March 11.

^ Metropolitan Edison Co.

(3/11)

Jan.

—

New York.

of America

of

III.

by amendment. Underwriters—Glore, Forgan & Co. and
Lee Higginson Corp., New York.
Proceeds—To retire
bank loans.
Offering—Indefinitely postponed.

Jan.

tion and working capital.

Forge & Steel Corp., Erie, Pa. (2/26-27)
Feb. 7 to be filed (by
amendment) 200,000 shares of 6%
convertible pfd. stock (par $10). Price—To be
supplied
by amendment. Underwriters—Lee Higginson Corp. and

of

Feb. 4,

on

construction.

it Metropolitan Edison Co.

N. Y.

^'International Glass Fibres Corp., Baltimore, Md.
Jarfr^S (letter of notification) 200,000 shares of common
stock.

(par $10)
at- rate

stock and 1,500 shares of 7%

v

Underwriters-

Co., Pittsburgh, Pa. Proceeds—For
devel^jfworking capital.

(letter

Pollard, the

New York.

Ave^Srooklyn,

Erie

28

K.

(letter of notification) 7,600 shares of class A
stock, 20,000 shares of class B common stock
and 20,000
shares of preferred stock.
Price—At par
($5 per share). Underwriter—None. Proceeds—For expansiomi:an'd working capital.
Office—1621 Nostrand

costs and

factors Corp.

M.

common

Jan. 10 filed 475,000 shares of common stock to be of¬
fered first to holders of preferential
rights for a limited
time. Price —At par ($1 per

share).

Mrs.

Underwriter—Thomson

Herbert Helmus-Hardware Corp.

Angeles. Calif.
Diesel

stockholder.

stock

stockholders

share for each five shares held

New York.

its

shares of

capital
Price—At market (approximately

(par 25 cents).
share). Proceeds—To

Jan.

Underwriters—Van

Aistyne,
Co., New York, and Crowell, Weedon & Co., Los

Noel &

Mining Co., Wallace, Ida.
of notification) 3,000

(letter

per

selling

(3/5)

Feb: 5 filed 600,000 shares of convertible preferred stock
(par $25). Price—To be filed by amendment. Proceeds
—For

17

common

common

with over¬
subscription privileges; rights to expire Feb. 25. Price—
$15.25 per share. Underwriters—Merrill Lynch, Pierce,
Fenner & Beane, and Kidder, Peabody & Co., both %£

•

W. C.

Langley & Co.; White, Weld & Co. and Shields &
(jointly); Morgan Stanley & Co.; Blyth & Co., Inc.

Boston

filed

28

eral

Mines

per

New York.
common

(2/26)
50,000 shares of cumulative preferred stock

(par $100). Proceeds—For

filed

First

Corp., New York.

Underwriter—None.

($1

Un¬

Koppers Co., Inc., Pittsburgh, Pa. (2/19)
29 filed 250,000 shares of common stock (par $10).
Price—To be supplied
by amendment. Proceeds—For

expansion and

par

investment.

derwriter—The Keystone Co. of Boston.

share.

Office
Independence Bldg., Colorado Springs, Colo. Un¬

April 9

stock

common

Jan.

will

At

Delaware Power & Light Co.

Jan. 29 filed

Jan.

86,750 shares of

shares

Golconda

Deardorf, the selling stockholder. Office—219
Fidelity Bldg., Oklahoma City, Okla. Underwriter—None.

it

filed

25

stock

derwriter—None.

—To B. C.

•

(2/14)
(par $5).
Price—To be supplied by amendment (expected around
$13.50 per share). Proceeds—To reimburse the company
in the amount of $574,825 for expenditures made
£>r
plant, property and equipment, and the balance for
working capital. Underwriter — Paul H. Davis & Co.,
Chicago, 111.
Jan.

record

Jan.

ment

construction and to retire bank loans.

Co., Grand Haven, Mich.

ceeds—To repay loans and for mining
equipment.

pro¬

gram.

a.m.

new

Keller Tool

it Globe Hill Mining Co., Colorado Springs, Colo.
Jan. 29| (letter of
notification) 3,000,000 shares of common
stock (par one cent). Price—Two cents
per share.
Pro¬

Feb. 15.

on

ceeds—To

Co.

•

Dec. 19 filed 150,000 shares of 4x/2% cumulative convert¬

Underwriter—None.

share for each

Proceeds—For

—334

expire

bank

share).

Office

purposes.

nine shares held; rights
Price—$32 per share. Underwriters
—Morgan Stanley & Co. and W. E. Hutton & Co. Pro¬

•

per

Co., Dallas, Texas, and United Trust Co., Abilene, Kan.

Office—440

it Gillette Safety Razor Co., Boston, Mass.
Jan. 29 (letter of
notification) 10,000 shares of common
stock (par $1), to be offered to
employees of company

Underwriter—Hirsch & Co., New York.
Dayton Power & Light Co.
Jan. 8 filed 256,007 shares of common stock
(par $7'
being offered to common stockholders of record Jan. 28
one

Pro¬

Corp., Miami, Fla.

For

supermarkets.

of

unit.

stock

—

basis

per

(letter of notification) 75,000 shares of common
(par $1). Price — $4 per share. Underwriter—
George R. Holland Associates, Miami, Fla. Proceeds—

capital.

Crystal Dairies, Inc. (3/3-8)
Jan. 31 filed 147,000 shares of common stock
(par $1), of
which 125,000 shares will be offered
by company and
22,000 shares by present stockholders. Price—To be sup¬
plied by amendment.
Proceeds
To open additional

to

share of preferred and

Price—$11

Dec. 29

Da itch

on

one

stock.

common

General Credit

Feb.

Proceeds—For

of

working capital. Office—850 El Centro St.,
So. Pasadena, Calif. Underwriter—None.

share for each 20 shares held;
25.
Price—$3.75 per share.

new

rights to expire on
Underwriter—None.

Underwriter

ceeds—For

capital

(par $1), to be offered to stockholders of record

Jan. 24

share

one

shares

Geneva, O.

it Frigid Process Co., So. Pasadena, Calif.
Feb. 1 (letter of
notification) 5,000 shares of preferred
stock (par $10) and
5,000 shares of common stock (par

funds of the Association and used for all
corporate pur¬

17

debenture

—None.

subsidiary. The Cooperative Farm Chemical Association,
and the remaining
$4,000,000 to be added to general

Jan.

Inc., Geneva, Ohio

1

(letter of notification) $140,000 of first mortgage
bonds.
Price—At par (in denominations
of $500 each). Proceeds—For
working capital. Office—
6%

43

Jan.

it Fischer-Spiegel,

24 filed
$3,000,000 of 10-year 41/2% certificates of
indebtedness and $5,000,000 of 20-year 5 %% certificates
of indebtedness.
Proceeds—$4,000,000 to be used to aid

Crookes

Unsubscribed shares will be offered by
at the same price and carrying the same
Proceeds—To finance drilling program. Un¬

company

warrants.

Jan.

poses.

will

003,792 shares.

Offering

—Being made today (Feb. 7).
Consumers

on

one new share for each two shares held. Sub¬
receive, for each share subscribed, a war¬
rant to purchase one additional share at
$1.25 (Canadian
funds) per share until June 1, 1953, or an additional 2,-

Proceeds—To pay outstanding production notes and for
working capital. Office—522 Felt Bldg., Salt Lake City,
Utah.
Underwriter—Tellier &

Co., New York.

(Canadian funds)

basis^pf

scribers

com¬

42 cents per share.

—

business.

Underwriters—Simon, Strauss &
Himme, New York; and William N. Pope, Inc., Syracuse,

Dec. 26 filed 1,359 shares of common stock
(no par)
Price—At market (about $12.75 per
share). Underwrite*
—None. Proceeds—To certain
•

(€03)

new

stock

30 filed

40,000 shares of

(par $100). Proceeds—For

debentures

notification) $250,000 of 10-year 6%
(in multiples of $1,000 each) and 3,500 shares

Jan. 28

derwriters

of

stock

and

cumulative preferred
construction. Un¬

Probable bidders:

common

and

14

shares of

Proceeds—For

Building.

(par $1) in units of
common

working

Juniper

and

stock.

capital.

a

$1,000 debenture

Price—$1,140
Office—606

Chestnut

it Jones

Streets,

unit.

per

debt

and for working capital.
Office — 1700 Brandon
Road, Charlotte, N. C. Underwriter—None.

Philadelphia,

Pa.—Underwriter—None.

"

Construction Co.

(letter of notification) $180,000 of common stock
$115,000 of preferred stock (number of shares and
value and price not available). Proceeds—To reduce

par

Widener

(J. A.)

.

Kansas-Nebraska Natural
•

Federal

Jan.

21

Loan

(letter

Co.

of

of

Pittsfield, Inc.
notification) a maximum

Jan.

of

14,814

shares Of $1.20 cumulative preferred stock (no
par) being
offered to stockholders of record Jan. 28
througtrnegotiable

stock

scribed
number

warrants; rights to expire Feb. 20. Unsub¬
to be publicly offered
(in which event

shares

of shares offered




will

be

reduced

so

aggregate

be

14

filed

offered

(for

77,355 shares of

first

to

common

Gas

Co.,

common

Inc.

stock (par $5) to
about Feb. 4

stockholders

14-day standby) at rate of one share for each 10
shares
held.
Price—$20 per share;
Underwriters—
Cruttenden & Co., Chicago, 111.; The First Trust Co. of
Lincoln, Neb.; Harold E. Wood & Co., St. Paul, Minn.;
Beecroft, Cole & Co., Topeka, Kan.; Rauscher, Pierce &
a

& Co. and

new

To be determined

by competitive bidding.
Kidder, Peabody & Co.; Smith, Barney
Goldman, Sachs & Co. (jointly); Carl M. Loeb,
—

Rhoades &

Co.; Drexel & Co.; Harriman Ripley & Co.
(jointly); Salomon Bros.
& Hutzler; The First Boston Corp. Bids—To be received
at Room 2703, 67 Broad St., New York 4, N. Y., up to

Inc. and Union Securities Corp.

noon

(EST)

on

March 11.

it Mississippi Valley Gas Co. (2/25-26)
Feb. 4 filed 400,000 shares of common stock (par $5).
Price—To be supplied by amendment.
Proceeds—From
sale of stock, together with proceeds from private sale of

Continued

on

page

44

44

The Commercial and Financial Chronicle

(604)

Continued

from

43

page

$7,700,000 41/2% first mortgage bonds due 1972, to be
purchase gas properties of Mississippi Power &
Light Co. The transaction is to be consummated on Feb.
29, 1952. Underwriter—Equitable Securities Corp., Nash-

used to

^ville, Tenn.
Moore

International Television, Inc., N. Y.
(letter of notification) 299,000 shares of common
stock.
Price—At par
($1 per share).
Underwriter—
None.
Proceeds—For production of films for television
presentation and general working capital. ..Office — 20
East 53rd Street, New York, N. Y.
Dec. 5

it Moshannon Valley Gas & Oil Co., Inc.
18 (letter of notification) 6,000 shares of class A

Jan.

Proceeds
—To lease and own, develop and operate gas and oil
wells. Office—19 Water Street, Philipsburg, Pa. Under¬
Price—At par ($50 per share).

stock.

common

it Purolator Products, Inc.
22 (letter of notification) 8,850 shares of common
stock (par $1) to be issued to Roland H. Burke and
Darnall Burke (4,425 shares to each) in exchange for all
of the 150 shares of outstanding capital stock of Petro¬

Jan.

writer—None.

leum

Accessories, Inc. (Mich.). Of the 4,425 shares to
each, 1,925 shares will be held for investment and 2,500
shares may be reoffered to public from time to time.
The exchange was to have become effective on or about
Jan. 28.

Price—At market.

Feb.

1

stock.

(Cleve), Inc., Shreveport, La.
3,000 shares of preferred
Price—At par ($100 per share). Proceeds—To in¬
(letter of notification)

''

•

Raytheon Manufacturing Co.
Jan. 17 filed 434,189 shares of common stock (par $5)
being offered first to common stockholders of record
Feb. 4

on

basis of

a

one

share for each four shares

new

held; rights will expire on Feb. 18. Price—$8 per share.
Underwriters—Hornblower & Weeks and Paine, Webber,
Jackson

& Curtis.

Proceeds

—

To

be added

capital and used for general corporate
—Manufacture

it Myers

Office—970 New Brunswick

Avenue, Rahway, N. J.

sale

and

of

to

working

purposes.

Business

electronic tubes

and -equip¬

ment.

(Robert)

• Reis
Jan. 29

&

Co.

idend

vest in

real estate.

New

Jan.

Britain

2

Machine Co.

filed

70,000 shares of common sthock (no par)
being offered to common stockholders of record Jan. 18
at rate of one share for each two shares held; rights

(letter of notification) 7,000 shares of $1.25 div¬
prior preference stock* (par $10)
and 40,000

shares

Underwriter—None.

of

stock

common

Feb. 29.

share. Underwriter—
None. Proceeds—For working capital. Business—Manu¬
facture of multiple spindle automatic screw machines,
etc.

on

Price—$20

Statement effective Jan.

per

Niagara Mohawk Power Corp.
11\ filed 20,196.1 shares of mass A stock (no par).
Price—At current market prices 011 the New York Stock
Exchange. Underwriter — None. Proceeds — To United

Corp., the selling stockholder. Statement effective Feb. 1.

^ Noranda Oil Corp., San Antonio, Tex.
(letter of notification) 10,000 shares of common
stock (par $1). Price — At market (approximately 75
cents per share). Proceeds—To Aristide M. Joncas. Of¬
fice—2101 Transit Tower, San Antonio 5, Tex.
Under¬
writer—C. K. Pistell &

Co., Inc., New York.

it Oklahoma Gas & Electric Co.
Jan.

30

filed

March 1,

of first mortgage bonds due
Proceeds—To retire bank loans and for

$12,000,000

1982.

Underwriters—To

construction.

new

be

determined

by

competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Merrill Lynch, Pierce, Fenner & Beane and
White, Weld & Co. (jointly); The First Boston Corp.;
Equitable Securities Corp.; Lehman Brothers and Blyth
&

Co., Inc. (jointly); Harriman Ripley & Co. Inc. and
Securities Corp. (jointly). Bids—Expected to be

Union

received

time in March.

some

Oliver

Corp., Chicago, III.

(2/13)

Jan. 24 filed 171,090 shares of common stock (par
$1)
be offered for subscription by common stockholders
record

Feb.

13

on

basis

of

one

new

to
of

share for each five

shares held;

rights to expire on Feb. 27. Price—To be
by amendment.
Proceeds — To reduce short-

supplied

term bank loans from

$17,500,000 to $12,500,000. Business
—Farm equipment.
Underwriters—Blyth & Co., Inc.,
Merrill Lynch, Pierce, Fenner & Beane and
Paine, Web"ber, Jackson & Curtis.

it Oregon Fibre Products, Inc., Pilot Rock, Ore.
Feb. 1 filed $2,500,000 5%
sinking fund debentures due
Jan.

1,

1968

(in

denominations of $100 each); 5,000
shares of 6% cumulative preferred stock (par $100) and

60,000 shares of
units-of
one

common stock (par $.1) to be offered in
$100 of debentures and two common shares or

share of preferred and two

common

shares.

Price—

$102 per unit. Proceeds
For new construction and
equipment. Business — Softboard and hardboard plant.
—

Underwriter—N one.

Peabody Coal Co.
March

26

filed

160,000 shares of 5V2% prior preferred
etock (par $25).
Price — To be supplied by amendment
Underwriter—A. C. Allyn & Co., Inc.,
Chicago, 111.
ceeds—For construction program.

Pro¬

Offering—Indefinitely

postponed.

Peoples Finance Corp., Montgomery, Ala.
Dec. 19 (letter of
notification) 15,000 shares of common
stock (par $1). Price—$3
per share. Underwriter—Carl¬
son & Co.,
Birmingham, Ala. Proceeds—To expand busi¬
Office—5

South Court St.,
Montgomery, Ala.
• Phillips Packing Co., Inc., Cambridge, Md.

ness.

Jan. 30

(letter of notification) 3,000 shares of common
stock (no par). Price—At market
(approximately $8.87V2

share).

Proceeds—To Theodore Phillips.
er—Alex. Brown & Sons,
Baltimore, Md.

per

Underwrit¬

it Phillips Packing Co., Inc., Cambridge, Md.
Feb. 1
(letter of notification) 2,000 shares of common
stock (no par). Price — At market
(about $8.62% per
share). Proceeds
To Albanus
Phillips, Jr., the selling
stockholder.
Underwriter—Alex. Brown & Sons, Balti¬
more, Md.
—

it Pickering Lumber Corp., Kansas City, Mo.
31 filed voting trust
certificates for 988,902 shares
of common stock (par
$7.50). Trustees—James M. Kem¬
per, F. H. Dierks and H. N. Ess. Underwriter—None.
Jan.

•

Pioneer Air

Nov. 29

filed

Lines, Inc., Dallas, Tex.

$12

120,000 shares of

per

share.

Public
Jan.

18

Telephone Co., Blair, Neb.
(letter of notification) $80,000

of

4%%

first

mortgage bonds, series A, due Feb. 1, 1972 (in denomi¬
nations of $1,000 each).
Price—At 102%.
Proceeds—
For construction and corporate
purposes.
Wachob-Bender Corp.,




Omaha, Neb.

Underwriter—
*

'

new

Underwriter—Hugh P. Wasson, President of company.
•

United

Canadian

Oil

(2/11)

Corp.

July 31 filed 1,000,000 shares of common stock (par $1).
Price—At

par.
Underwriter—Aigeltinger & Co., New
(by amendment Jan. 8, 1952). Proceeds—For com¬
pletion of well, for acquisitions, for drilling expenses,
etc. and working capital. Statement effective Oct. 8.

York

it U. S. Vitamin Corp.
(letter of notification) 15,000 shares of common
stock (par $1) represented by voting trust certificates,
to be offered to employees. Price—$8.25 per share. Pro¬
ceeds
For
working capital.
Office — 250 East 43rd
Jan. 31

—

Street, New York 17, N. Y.

it Uranium Exploration Co., Salt Lake City, Utah
(letter of notification) 100,000 shares of common
stock.
Price—At par (25 cents per share). Proceeds—
For equipment and working capital. Office—407 Pacific
National Life Bldg., Salt Lake City, Utah.
Underwriter
Jan. 31

—None.

it Val Sweet Corp., San Francisco, Calif.
(letter of notification) 18,750 shares of

•

act

deceased.

Brothers, New York,

broker.

as

Robinson

(J. W.)

Co., Los Angeles, Calif.

pro rata basis to stockholders of record Nov. 23,
(approximately 33 in number) for-a 30-day period,
with an oversubscription privilege. Unsubscribed shares
to be sold privately to individuals selected by company.

Price—At par ($10 per share). Underwriter—None. Pro¬
ceeds — For working capital. Business —
Department

Statement effective

Jan.

28.

•

Sobering Corp., Bloomfield, N. J. (3/6)
18 filed 440,000 shares of common stock
(no par).
Underwriter—None.
Entire issue to be offered by the
Attorney General of the U. S. as an entirety. Probable
bidders: A. G. Becker & Co.
Inc., Union Securities Corp.
and
Ladenburg, Thalmann & Co.
(jointly); Merrill
Lynch, Pierce, Fenner & Beane, Kidder, Peabody & Co.
and Drexel & Co.
(jointly); F. Eberstadt & Co. Inc.;
Allen & Co.; a new company to be formed
by United
States & International Securities
Corp.; Dillon, Read &
Co. Inc.; F. S. Moseley &
Co.; Riter & Co.; The First
Boston Corp.;
Goldman, Sachs & Co.; Estabrook & Co.
Proceeds—To the Attorney General of the U. S., the
Jan.

the

shares.

Business—Manufactures

and

sells

pharmaceutical and cosmetic products. Bids—To be re¬
ceived up to 3:30 p.m. (EST) on March 6
by Office of
Alien Property, 120 Broadway, New
York, N. Y. State¬
ment

effective Jan.

be. offered

to

a

selected

group

common

of individuals.

par ($10 per share). Proceeds—For working
capital. Underwriter—None.

it Vanadium Corp. of America
23 (letter of notification) 8,811 shares of common
stock (no par) to be issued upon exercise of options
granted to employees on June 25, 1951. Price—$32.19
Jan.

be offered

a

of

to

•

1951

owner

stock

31.

share.

per

Proceeds

—

Underwriter—None.
New York

For general corporate

Address—420

purposes.

Lexington

Avenue,

17, N. Y.

Viking Plywood & Lumber Corp., Seattle, Wash*
Oct. 19 filed 22,500 shares of common stock (no par) to
offered to employee-stockholders in minimum units

be

of

125 shares per unit. " Price—$20 per share.
Proceeds—To purchase 50% of

writer—None.

itock of Snellstrom Lumber Co; '

Under¬
capital

'

it Wei-Met Co., Kent, Ohio
Feb. 1
(letter of notification) 1,500 shares of common
stock (par five cents). Price—20 cents per share. Pro¬
ceeds—For working capital. Office—110 Gougler Ave.,
Kent, O. Underwriter—None;,v..
\
•*.:

it Welex Jet Services, Inc., Ft. Worth, Tex.
Jan.

25

stock

(letter of notification) 2,000 shares of common
per share. Proceeds—To W.

(no par). Price—$20

H.

Thompson, the selling stockholder. Underwriters—
McColloch, Ft. Worth, Tex.; Dewar, Roberston
Antonio, Tex.;
and Laird & Co., Wilmington, Del.

Barron

& Pancoast and Russ & Co., both of San

West Penn Electric Co.
Dec. 28 filed

it Shopping Bag Food Stores, Los Angeles, Calif.
Jan. 28 (letter of
notification), 9,677 shares of preferred
stock

(par $25) and 9,677 shares of common stock (par
$1) to be offered, in units >of one share of preferred and
one share of common stock.
Price—$31 per unit. Pro¬
ceeds—For working capital. Office—2716 San Fernando
Road, Los Angeles 64, Calif. Underwriter—None.

440,000 shares of common stock (no par)
being offered for subscription by common stockholders
of record Jan. 31 at rate of one share for each eight
shares
per

held; rights to expire on Feb. 18.
Price—$28.75
share.
Underwriters—Lehman Brothers and Gold¬
Sachs & Co.

man,

in

stocks

common

(jointly).
of

Proceeds—To be invested

three subsidiaries.

Statement

ef¬

fective Jan. 22.

it Stein Roe & Farnham Fund, Inc., Chicago, III.
Feb. 4 filed 200,000 shares of
capital stock. Price — At
market.
•

Proceeds—For investment.

Southwestern

Jan.

11

filed

Public

251,540

Service

shares of

stock

(par $1)
common stock¬

common

being first offered for subscription

by

holders of record

one

13

shares

held

Jan.

30

(with

at rate of

for each

share

oversubscription privilege);
rights to expire Feb. 14. Price—$17.50 per share. Un¬
derwriter—Dillon, Read & Co. Inc., New York. Proceeds
—From sale of stock, together with funds from
private
sale of $10,000,000 new 3%% first
mortgage bonds due
1982, to be used to pay for property additions and to re¬
tire bank loans.

Prospective Offerings

Underwriter—None.
Co.

an

Aeroquip Corp.
Jan. 4, Don T. McKone, Chairman, announced that con¬
sideration was being given to the possibility of equity
financing.
On Feb. 18, stockholders will vote on in¬
creasing authorized common stock to 1,000,000 from
750,000 shares, and on issuance of 37,500 shares as a
5% stock dividend.
Underwriter—Watling Lerchen &
Co., Detroit
capital.

Mich.

Proceeds—For

working

additional

Allied Electric Products,

Statement effective Jan. 31.

•

Inc., Irvington, N. J.
Chairman, said it is probable
short time will register with
issue of long-term convertible debentures,

Nov. 9, Nathan Chirelstein,
that the company within a

Spear & Co., New York
Dec. 31 filed 9,026 shares of
$5 cumulative convertible
'second preferred stock, (no par), of which 7,526 shares
are
being offered to common stockholders of record

the

Feb.

standing three-year convertible notes dated Nov. 1, 1951.

of

5

at

rate

common

of

stock

1

preferred

held

share for

(other

than

each

holders

12

of

shares

present

second

preferred stock owning common stock); rights to
expire Feb. 29. The other 1,500 second preferred shares
are to be sold to a selected
group. Price—$105 pen share.
Proceeds—To A. M. Kahn and A. J.
Kaminsky* two
selling

stockholders.

Underwriter—None.

Business—Furniture

store* chain.

lative

preferred stock. Price—At

Jan.

11

cumu¬

par

Industries, Inc., Dallas, Texas

filed

bentures

due

amendment.

Dallas, Tex.

$1,000,000 of
Jan.

15,

1967.

15-year

6%

Price—To

Underwriter—Rauscher,
Proceeds—To

be

added

convertible

de¬

be

supplied by
Pierce
&
Co.,

to

Underwriter—Hill, Thompson & Co., Inc., New York.

it Allied Finance Co. of Texas
Feb. 7 stockholders will vote

sale

general funds.

Business—Produces and sells lightweight expanded clay
shale aggregate under the trade name "Haydite" and
manufactures and sells lightweight concrete
masonry

units, etc.

Offering—Expected this week.

Trangulf Corp., Houston, Tex.
Jan. 25 (letter of notification) 25,000 shares of
capital
stock (par 10 cents^; Price—$1
per share. Proceeds—For
working capital. Office—1 Main St., Houston, Tex. Un¬
derwriter—Arthur I. Korn & Co., New York.
Tri-State
Jan.

21

filed

Telecasting Corp., Chattanooga, Tenn.
20,000

shares

and 2,000 shares of 5%

of

stock

(no

par)

cumulative preferred stock

(par

common

on

approving issuance and

of

$1,200,000 5%% cumulative preferred stock and
$600,000 6% participating preferred, stock (either pri¬

vately or publicly as a whole or in series).

Proceeds—

working capital.

($100 per share).
Proceeds—For working capital. Office—6323.. Avondale
Ave., Chicago 31, 111. Underwriter—None,
Texas

an

*To retire $600,000 outstanding preferred stock and for

Statement effective Jan. 30.

• Sun Electric Corp., Chicago, III.
Jan. 29 (letter of
notification) 3 000 shares of 6%

SEC

part of which will be offered in exchange for any out¬

•

American

Feb.
new

Can

directors

5

money

Co.

approved the

raising of $50,000,000 of

to provide for the company's plant improve¬

ment program and for additional

working capital. C. H.
Black, Chairman, said the board's plans call for provid¬
ing half of the new money through the sale of debentures
and

the

tional

remaining $25,000,000 through the sale of addi¬

common

stock which would be offered to

stockholders for subscription.

common

The details of the financ¬

ing plan will be completed

and announced at an early
Underwriter—Morgan Stanley & Co., New York.

date.

or

common stock (par $1).
Underwriter—Cruttenden & Co.,
Chicago, 111. Proceeds—To purchase new
equipment. Of¬
fering—Temporarily delayed.

Price

share, and of preferred, $100 per share.
equipment and
working capital.

per

Price—At

will

store.

Jan. 29

$10

common,

Proceeds—To Estate of Arthur M. Reis,
Underwriter
None, but Lehman
mon.

on

•

Jan.

each

Proceeds—For

Thursday, February 7, 1952

Jan. 28

Jan. 4 filed 100,000 shares of capital stock to

21.

for

.

stock to be sold only on basis of ten
preferred share purchased). Price—Of

(common

(par $1).
Price—$7.37V2 per
share for the preferred and $1.12% per share for com¬
—

expire

$100)
shares

.

.

Atlantic City Electric Co.
Jan.

21, B. L. England, President, stated that the com¬
expects to issue and sell $5,000,000 of first mort¬
gage bonds during the first half of 1952, and $4,000,000
of preferred stock in the last half of the year.
Under¬
writers—For bonds, to be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
pany

The

First

Union

Boston

Securities

Corp.
Corp.

and
and

Drexel

Smith,

&

Co.

(jointly);
&
Co.

Barney

(jointly); Lehman brothers; White, Weld & Co. and
Shields & Co. (jointly).
Previous preferred stock fi-

Number5088:

Volume 175

.*. r

The Commercial and Financial Chronicle:

nancing was done privately through Union Securities
Corp. and Smith, Barney & Co. Proceeds—For con¬
struction program.

,

u

Bell Telephone Co. of Pennsylvania
Jan. 2 it was announced that company's

for next three years rails for the

program

construction

expenditure

in 1952. Underwriters—For bonds to be

petitive bidding. Probable bidders: Halsey, Stuart & Co.

Inc.; Kuhn, Loeb & Co. and Lazard Freres & Co. (joint¬
ly); Morgan Stanley & Co.; White, Weld & Co. and
Union Securities Corp. (jointly); The First Boston Corp.

Bridgeport Hydraulic Co., Bridgeport, Conn,
was announced that company plans to offer to
stockholders 44,000 additional shares of com¬
mon stock.
Price—Between $24 and $26.75 per share.
Underwriter—Smith, Ramsey & Co., Bridgeport, Conn.
Proceeds—To finance improvements and additions and
Jan. 15 it

common

to

liquidate short term bank loans.

Columbia Gas System, Inc.
was announced that it is the present intention
of the company to sell securities in 1952 for the purpose

Offering—Expected

refunding the $20,000,000 of 2^% bank notes due
June 15, 1952. The type or aggregate amount of securi¬
ties which may be sold during 1952 cannot be determined
at this time.

18

(J. I.)
it

was

Co.
Vj
announced that stockholders will vote

increasing the authorized common stock from
1,200,000 shares, par $25, to 4,000,000 shares, par $12.50,
and on issuance of two nc;/ shares in exchange for each

April 17

on

share presently held. Following split-up, it is
set aside 100,000 of the new shares for sale to

planned to
employees

purchase options, and to offer to common
one new share for each five shares held.
Price—To be determined later. Underwriters—Probably
under stock

stockholders

Morgan Stanley & Co. and Clark, Dodge & Co.
V Central Louisiana Electric Co., Inc.
•
was reported that company planned to issue

Jan. 21 it

$4,000,000 first mortgage bonds. Underwriters—
competitive, bidders may include: Halsey, Stuart & Co.

and sell

If

Inc.; The First Boston Corp.; Blair, Rollins & Co. Inc.,
Lee Higginson Corp., W. C. Langley & Co. and Carl M.
Loeb, Rhoades & Co. (jointly). Previous bond financing
was done privately.
'

Light Co. (3/4)
plans issuance and sale
of $10,000,000 first mortgage bonds, series D,
about
March 4. Underwriters—To be determined by competi¬
Central

Jan.

10

it

Power

was

&

stated

tive bidding. Probable

company

bidders: Halsey, Stuart & Co. Inc.;

Kuhn, Loeb & Co., A. C. Allyn & Co., Inc. and Bear,
Stearns & Co. (jointly); Blyth & Co., Inc., Harriman
Ripley & Co., Inc. and Stone & Webster Securities Corp.
(jointly); Kidder, Peabody & Co.; The First Boston
Corp.; Carl M. Loeb, Rhoades & Co.; Lehman Brothers
and Glore,
Forgan & Co.
(jointly); Merrill Lynch,
Pierce, Fenner & Beane and Salomon Bros. & Hutzler
(jointly); Union Securities Corp. Proceeds—For new
construction.

^Chesapeake & Ohio Ry.
Bids will be received

on

(2/13)

Feb. 13 for the purchase from

of $8,250,000 equipment trust certificates
to be dated March 1, 1952 and to mature in 30 equal
semi-annual instalments from Sept. 1, 1952 to and in¬
the

company

cluding March 1, 1967. Probable bidders: Halsey, Stuart
& Co. Inc.; Salomon Bros. & Hutzler.
•

Inc.
plans to spend about
$105,000,000 for new construction during 1952, of which
it is proposed to raise $65,000,000 from new financing.
It is presently borrowing $31,000,000 from banks. Under¬
writers—For bonds, to be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Morgan Stanley & Co.; The First Boston Corp.
Jan.

2

(2/28)
(CST)
on Feb. 28 for the purchase from the company of $2,400,000 equipment trust certificates, series 00 to mature semL
annually over a period of 15 years. Probable* bidders:
Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler.
Chicago & Western Indiana RR.
23 company sought ICC permission to issue $52,500,000 of first and refunding mortgage bonds without
competitive bidding. The bonds will be dated not earlier
than March 1, 1952 and mature not later than Sept. 1,
1962. Proceeds—To pay at maturity $49,988,000 of 4%
non-callable consolidated first mortgage bonds due July
Jan.

1952, and the remainder used for

capital improve¬

ments.

City National Bank of Houston

(Tex.)

Jan. 8 stockholders approved an increase

in authorized

capital stock (par $20) from $5,000,000 to $7,500,000 to

20% stock dividend and the sale of 75,000
shares of additional stock to stockholders on a one-forfour basis. Price—$40 per share. Proceeds—To increase
provide for

a

capital and surplus.
City National Bank & Trust Co. of Chicago
Jan. 12 it was announced stockholders will vote Feb. 8

approving a proposal to change presently outstanding
capital stock from 50,000 shares, par $100, to 200,000
shares, par $25, in order to effect a four-for-one stock
split-up. Following split-up, it is planned to offer for
subscription by stockholders 40,000 additional new $25
par shares. The proposed financing has been objected to
by certain stockholders. Prices—$40 per share. Proceeds—
To increase capital and surplus. Underwriters—Merrill
Lynch, Pierce, Fenner & Beane and Central Republic
on

Co. Inc.

.

Colorado Central Power Co.
Jan. 21 it

years and to

was

reported company may offer later this year

rights to its common stockholders to purchase additional
common stock (sufficient to raise $300,000 or less). Pro¬
ceeds—To retire bank loans and for new construction.
Underwriter—None.

Colorado Interstate Gas Co.
Dec. 26 SEC approved a plan filed by Mission Oil
and its holding company subsidiary, Southwestern

Co.
De¬
velopment Co. designed to effectuate compliance with
the Holding Company Act. This development is expected
to result in early registration of Colorado Interstate Gas
Co. common stock, with Union Securities Corp. as prob¬

able underwriter.




replace depleted working capital.

Illinois Power Co.
Jan. 21 it was reported that the company was understood >
to be planning the issuance and sale of about
$15,000,OOof
of first mortgage bonds. Proceeds—For new
construction
and

to repay bank loans. Underwriters—To be deter¬
mined by competitive bidding. Probable bidders:
Halsey,
Stuart & Co. Inc.; White, Weld & Co. and Merrill
Lynch,

its

announced

company

Pierce, Fenner & Beane (jointly); Union Securities
Corp.; The First Boston Corp.; Harriman Ripley & Co..
Inc. and Glore, Forgan & Co.
(jointly); Kuhn, Loeb & Co.
^ Inland Steel Co.
Jan.

Consolidated
Dec. 24 it

was

sale of

stated that company plans to issue and sell

both stocks and bonds

during 1952 to an amount suffi¬
approximately $22,000,000. Underwriters—
be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; White, Weld
& Co. and The First Boston Corp. (jointly); Harriman
Ripley & Co., Inc. and Alex. Brown & Sons (jointly).
The First Boston Corp., Alex. Brown & Sons ana John C.
Legg & Co (jointly) handled latest common stock fi¬
nancing, while White, Weld & Co. handled last preferred
stock sale. Proceeds—For new construction. Offeringbonds

to

Expected in March

or

Interstate
Jan.

&

which will involve record construction expen- ~
$53,000,000 in 1952, will entail additional
financing this year.

received

.'v-:v;'y

:■1

:v

•'

■

>./

Bros.
&
Hutzler
and Union
Securities Corp.
(jointly); Equitable Securities Corp.; Lehman Brothers
and Bear, Stearns & Co.
(jointly); Harriman Ripley &
Co., Inc. Proceeds—For new construction.
>

Kentucky Utilities Co.
Dec. 10 it
in

of

value

for the'

mortgage

bonds,

Inc.; Kidder, Peabody & Co. and White, Weld & Co.
(jointly); Lehman Brothers and Salomon Bros. & Hutzler
(jointly); Blyth & Co., Inc.; Union Securities Corp. and

(2/26)

series A,

Merrill Lynch, Pierce, Fenner &

Leitz

due

it

23

was

stockholders

Bank of Portland

announced

company

200,000 additional

to

was

120

(Ore.)

plans

offer to

States. Probable bidders may include: Allen & Co.

shares of capital stock

Martin

(par $12.50) at rate of one share for each five shares
Price—$30 per share. Underwriter—None.

Jan.

held.

10

(Glenn

L.)

Co.

announced

company

plan to

sell

$6,000,000 of convertible debentures to
Florida

Jan.

Power

it

11

was

Corp.

vate investors and

announced that additional financing will

stockholders.

complete the company's construction
program and it is contemplated that the balance of new
capital heeded will be obtained from the sale of common
stock *and first mortgage bonds. Company has borrowed
be

to

necessary

Foote Mineral
Dec.

it

24

authorized

Middle
Oct. 31

Jan. 25 it
18

shares

to

Idaho

be

•

for

*
~

16, the directors authorized, pending a favorable
market, the issue and sale of up to $25,000,000 Of consoli¬
dated mortgage bonds. Underwriters — May be deter¬
Nov.

mined by

competitive bidding.. Probable bidders: Halsey,

preliminary to

a

its
large public

new

industrial

announced stockholders will vote March

one

a

total of 318,624 new shares

share for each four shares held; rights to

it

was

announced company

issue

and

sell

has applied to SEC
$7,500,000 of series C

competitive bidding. Probable bidders: Hal¬
Stuart & Co. Inc.; Harriman Ripley & Co. Inc.;

Hutzler; Kidder, Peabody & Co.; The
Corp.; Lehman Brothers; White, Weld &
Co. Bids—Expected to be received in March.

18, T. E. Roach, President, announced that the
company's present plans consist of the sale this year of
about 225,000 additional shares of common stock (par
$20), but no preferred stock. Underwriters—Latest com¬
mon
stock financing in April, 1949, was handled by

t;

SEC

Salomon Bros. &

First

program.

was

authority to

sey,

Co.

Illinois Central RR.

the

mined by

Jan.

construction

with

its

bonds due March 1, 1982. Proceeds—To repay bank loans
incurred for construction. Underwriters — To be deter¬

of

Blyth & Co., Inc.; Lazard Freres & Co.; and Wegener
& Daly Corp. Proceeds—To repay bank loans and for

Corp., N. Y.

Narragansett Electric Co.

Jan. 31

upon

Power

Industries

announced company plans to expand
in the near future and to register

& Telegraph Co. owns a majority (over
80%) of present
outstanding stock. Underwriter—None.
<

stock (par $5) following proposed

voted

common

to

expire about April 29. Price—At par. Proceeds—For re¬
payment of indebtedness. Control—American Telephone

announced company plans public offering

split-up

debentures

of

on

at rate of

presently outstanding 287,020
by stockholders on Feb. 25.
Pro«eeds—To be used for expansion program. Traditional
Underwriter—A. G. Becker & Co. Inc., Chicago, 111.
two-for-one

East
was

holders of record March 28

Hammermill Paper Co.
common

estimated

increasing authorized capital stock (par $100) from
1,500,000 to 2,000,000 shares. It is planned to offer stock¬

500,000 shares of $2.50 par value.

Stockholders will meet Feb. 21.

of additional

an

group of pri¬

it Mountain States Telephone & Telegraph Co.
(3/31)

Co.

announced company plans to increase
common stock from 300,000 shares
(259,422

was

sale

offering, the funds to be used to build
projects in Israel.

^

which may eventually require more capi¬
headed by Estabrook & Co. underwrote an
common stock to stockholders in April,
1951.

Jan. 22 it

it

securities

sion programs
tal." A group
of

a

stock to

Underwriter—Smith, Barney & Co., New-

capitalization

The company states that "there is no present plan of
capital financing either of an equity type or loan." The
directors, however, "are studying several plant expan¬

issue

common

help meet
production programs, and from sale of stock to retire
debentures within six months.,

was

shares outstanding) to

additional

York. Proceeds—From

$4,000,000 under a bank credit recently arranged which
provides for short-term bank borrowings of not more
than $10,000,000.
Previous bond financing was done
privately. Common stock may be offered to common
stockholders, with Kidder, Peabody & Co. and Merrill

Lynch, Pierce, Fenner & Beane acting as agents.

(jointly).

reported that the Office of Alien Property,
Broadway, New York, N. Y., plans to sell late in
March all of the outstanding capital stock of this com¬
pany, which distributed .Leica cameras in the United

1, 2018. Probable bidders—Halsey, Stuart & Co. Inc.;
Bear, Stearns & Co.
First National

Beane

(E.), inc., New York

Jan. 21 it

Jan.

Jan.

reported company plans to issue and sell
May $12,000,000 30-year first mortgage bonds,

was

or

Underwriters—To be determined by competi¬
bidding. Probable bidders: Halsey, Stuart & Co.

tive

purchase from it of $8,700,605 par

income

4V2%

April

series D.

announced that the RFC will receive bids

was

26

program.
Reg¬
Bids—Scheduled to be

18.

March 18.

omon

;

Salomon Bros. & Hutzler; Lee Higgin¬
son Corp.; Harris, Hall & Co.
(Inc.); The First National
Bank of New York; Harriman Ripley & Co. Inc. and
Lehman Brothers (jointly).
•„
• .
-

Feb.

construction

Feb.

plans to issue
$12,000,000 principal amount first
mortgage bonds (this is in addition to present preferred
and common stock financing. Underwriters—To be
de¬
termined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Glore, Forgan & Co.; Blyth
& Co., Inc. and Lazard Freres & Co.
(jointly); The First
Boston Corp.; White, Weld & Co. and Shields &
Co.
(jointly); Smith, Barney & Co.; Kuhn, Loeb & Co., Sal¬

Stuart & Co. Inc.;

on'

on

on

and sell in 1952 about

19 for the purchase from this company of $2,970,000
equipment trust certificates, series K, which will mature
in
15 annual instalments.
Probable bidders: Halsey,

Feb. 6 it

Proceeds—For

Jan.

it Delaware, Lackawanna & Western RR. (2/19)
Feb. 5 it was announced that bids will be opened Feb.

it Denver & Rio Grande Western RR.

common

Kansas City Power & Light Co.
4
company
announced that it

Light Co.
reported to be planning issuance
and sale of $6,000,000 first mortgage bonds, with regis¬
tration expected in March for bidding in April. Proceeds
—For construction program. Underwriters—To be deter¬
mined by competitive bidding. Probable bidders: Halsey,
Stuart & Co. Inc.; The First Boston Corp.; Hariman Rip¬
ley & Co., Inc.; Equitable Securities Corp.; Lehman
Brothers; Union Securities Corp.; Kidder, Peabody & Co.;
Blyth & Co., Inc.; Merrill Lynch, Pierce, Fenner &
was

.

Co. Inc.

istration—Expected

Power &

Beane.

common

competitive

Brothers; Merrill
Lynch, Pierce, Fenner & Beane and Kidder, Peabody
& Co. (jointly); Smith,
Barney & Co.; Harriman Ripley'

of

company

(3/18)

disclosed that company plans to issue
$2,000,000 of first mortgage bonds and 350,000

Salomon Bros. & Hutzler. Probable bidders for
stock:
Blyth & Co., Inc.; Lehman

April.

program,

Dallas

Power Co.

was

stock. Underwriters—To be decided
bidding. Probable bidders for bonds:
Halsey, Stuart & Co. Inc.; White, Weld & Co.; Merrill
Lynch, Pierce, Fenner & Beane; Smith, Barney & Co.;

by

29, Justin R. Whitin, Chairman of the Board, an¬
magnitude of the company's expansion

Jan. 23

it

shares of

nounced that the

ditures

18

and sell

Consumers Power Co.
Jan.

31

it was announced
company plans issuance and
$25,000,000 first mortgage bonds and about $25,000,000 of convertible debentures (latter to be first of¬
fered to common stockholders). Price—To be
announced
later.
Proceeds—For expansion program.
Underwriter
—Kuhn, Loeb & Co.

Gas, Electric Light & Power Co. of

Baltimore

Chicago, Milw., St. Paul & Pacific RR.

Bids will be received by the company up to noon

1,

*.

Consolidated Edison Co. of New York,

For

Case

Stuart & Co. Inc.; Kuhn, Loeb & Co.; Morgan
Stanley &
Co. Proceeds — To retire debt
maturing in next four

Nov. 26 it

cient to raise

in March.

Jan.

45

of

$247,000,000 of which about $81,700,000 will be spent
decided by com¬

of

(605)

•

Boston

National Fuel Gas

Co., N. Y.

(5/20)

Jan. 29 company applied to SEC for authority to issue
and sell $18,000,000 of sinking fund debentures due 1977.
.

Proceeds—To repay $11,000,000 bank loans and to loan
$7,000,000 to subsidiaries. Underwriters—To be deter¬
mined by competitive bidding. Probal le bidders:
Halsey,.
Stuart & Co. Inc.; Blyth & Co., Inc.; The First Boston
Corp.; White, Weld & Co.; Harriman Ripley & Co., Inc.
Bids—Expected on or about May 20.

Continued

on

page 46

46

The Commercial and Financial Chronicle

(606)

Continued
National
Jan. 21
21

it

from

page

Research

was

Robertson

45

Nov.

Corp., Cambridge, Mass.
stockholders will vote March

announced

increasing authorized capital stock from 125,000
fhares to 600,000 shares, to provide, in part, for payment
of a 200% stock dividend.
It is also planned to make
a

on

public offering of

shares

when

financing

in

1946

would

Proceeds

portion of the proposed authorized

a

conditions

market

writers— Probably

added

to

Paine,
Corp.

and The First Boston

Latest

to common stockholders.
working capital. Under¬

made

was

be

favorable.

are

Webber, Jackson & Curtis
Offering—Expected in May.

New

England Power Co.
received from SEC authority to increase
authorized bank borrowings from $12,000,000 to $16,000,000. A major portion of this indebtedness may be
financed through issuance of common stock to parent
(New England Electric System) and first mortgage bonds
early in 1952. Underwriters — For bonds, to be deter¬
mined by competitive bidding. Probable bidders: Halsey,
Stuart & Co. Inc.; Lehman Brothers; Blyth & Co., Inc.;
Equitable Securities Corp. and Blair, Rollins & Co. Inc.
(jointly); Merrill Lynch, Pierce, Fenner & Beane; Harriman Ripley &
Co., Inc.; The First Boston Corp.; Kuhn,
Loeb & Co., Union Securities Corp. and Salomon Bros. &
Hutzler (jointly); Kidder, Peabody & Co. and White,
Weld & Co. (jointly).
Jan. 11 company

New

England Telephone & Telegraph Co.

Dec.

20, F. A. Cosgrove, Vice-President, said a perma¬
financing program will have to be undertaken iD
1952 to repay about $43,000,000 short-term bank borrow¬
nent

Underwriters—For bonds

ings.

may

be determined by

competitive bidding. Probable bidders: Halsey, Stuart &
Co.

Inc.; Morgan Stanley & Co. In case of common stock
financing there will be no underwriting.
Northern

States

Power

Co.

(Minn.)

Jan. 16, B. F. Braheney,

President, announced that com¬
pany will have to raise between $30,000,000 and $32,500,000 this year to finance its construction program.
will be in the

two-thirds of the amount needed

About

form of debt issues and the balance common stock

(about
1,100,000 shares) the latter issued first to common stock¬
holders.
Underwriters—To be determined by competi¬

tive

Probable bidders for stock and bonds:
& Co.; The First Boston Corp.; Glore,
Co.; Lehman Brothers and Riter & Co.
(jointly); Equitable Securities Corp.; Union Securities
Corp.; Merrill Lynch, Pierce, Fenner & Beane; Kidder,
Peabody & Co. and White, Weld & Co. (jointly). Prob¬
able bidder on bonds only: Halsey, Stuart & Co. Inc.

bidding.

Smith

Barney

Forgan

&

Northwest

Natural

Gas

Co.

it

16

1952, vote

(H. H.)

stockholders

April

from

250,000 shares

(all outstanding) to 1,000,000 shares in order to make additional stock available
mon

for such corporate purposes as

acquisition of new proper¬
ties, to provide additional capital funds or declaration 01

March.
Groups: The First Boston Corp., Blyth & Co.,
Inc., First Southwest Co., Rauscher, Pierce & Co., Inc.
and

Dallas

and

Bear, Stearns & Co.

Rochester

Gas & Electric Corp.
16, it was stated that the company plans to issue
and sell $6,000,000 of preferred stock in March and an
equal amount of general mortgage bonds in September.
An
issue of about $8,000,000 common
stock is also
planned, probably for the Spring of 1953. Underwriter—
For preferred issue may be The First Boston Corp., New

Jan.

York.

Previous first mortgage

privately.

Proceeds—To

pay

bond financing was done
for new construction.

ic Russell Reinforced Plastics, Inc. (2/20)
Feb. 6 it was reported company plans to issue and sell
150,000 shares of common stock (par $1). Price—$2 per
share.
Proceeds—For expansion.
Underwriter—Aetna
Securities Corp., New York.
San

Diego Gas & Electric Co.
July 19, L. M. Klauber, Chairman, announced that the
plans to sell $10,000,000 of bonds early in 1952

company

Underwriters—To be determined by competitive bid¬
ding. Probable bidders: Halsey, Stuart & Co. Inc.; Blyth
& Co., Inc.; Merrill Lynch, Pierce, Fenner & Beane; The
First Boston Corp.; White, Weld & Co. and Shields &
Co. (jointly); Lehman Brothers.
Proceeds—For expan¬
sion program.

Seattle-First National

Bank, Seattle, Wash.

Jan. 15 stockholders of record of that date
the

right to subscribe

on or

were

offered

ditional shares of capital stock (par $20) on basis of one
share for each six shares held. -Price—$50 per share.

Proceeds—To increase capital and surplus. Underwriter
—Blyth & Co., Inc., and associates, who have agreed to
buy any unsubscribed shares.
Southern California Gas

Co.

(3/25)
was reported that company plans to issue and
$30,000*000 first mortgage bonds, series A. Undefc;
writers—To
be
determined
by
competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Lehman
Brothers; Merrill Lynch, Pierce, Fenner & Beane and
Harris, Hall & Co. Inc. (jointly); White, Weld & Co.;
Blyth & Co., Inc. Proceeds—For construction program.
Jan. 18 it

sell

Registration—Expected late in February.
tively scheduled to be received
•

Southern

Ry.

Bids—Tenta¬

March 25.

on

(2/20)

Bids will be received up to noon (EST) on Feb. 20
the purchase from the company of $5,850,000

Oregon, with a portion to be returned to Canada for use

(jointly).

for

British

Columbia.

The

estimated

overall

cost of the

project is approximately $92,000,000.
Underwriter—
Morgan Stanley & Co., New York, Financing—Not ex¬
pected until after Provincial elections in April.
Pacific

Northwest

of

share for each 13 shares held
(with an
oversubscription privilege). Price—$9 per share. Under-"
writer—Probably J. G. White & Co., Inc., New York.

$174,186,602. The line is sponsored by Fish Engineer¬
ing Corp. of Houston, Tex.
Probable underwriters:

White, Weld & Co. and Kidder, Peabody & Co., New
(See also accompanying item on "Spokane Gas &
Fuel Co.")
York.

Jan.

11

it

Inc.

Trade Bank & Trust Co.,

New York
15 stockholders approved increase in authorized
capital stock (par $10) from $2,000,000 to $2,500,000, the
additional 50,000 shares to be offered for
subscription
by stockholders of record Feb. 29 on basis of one share

Jan.

for

reported company may file in February
financing proposal with SEC. The previous
proposal to issue 100,000 shares of common stock (par
Dec.

withdrawn

was

on

21.

Pennsylvania Electric Co.
Jan.

5 it was announced that
company
about $26,000,000 for expansion in 1952,

plans to spend

to be financed,
part, by the sale of about $9,000,000 first mortgage
bonds, $4,500,000 of preferred stock and $4,500,000 of
stock

(the latter issue to parent, General Public
Utilities Corp). Underwriters—For bonds and
preferred
stock to be determined by competitive
bidding. Probable
bidders: (1) for bonds—Halsey, Stuart & Co.

Inc.; Kid¬

der, Peabody & Co.; Union Securities Corp. and White,
Weld & Co. (jointly);
Kuhn, Loeb & Co.; A. C. Allyn
& Co., Inc.; Equitable Securities
Corp.; Shields & Co.
and R. W. Pressprich & Co.
(jointly). (2) for preferredSmith, Barney & Co. and Kidder, Peabody & Co.
(jointly); W. C. Langley & Co. and Glore, Forgan & Co.
(jointly); Kuhn, Loeb & Co.; Lehman Brothers and
Salomon Bros.

Co., Inc.
-

& Hutzler

(jointly); Harriman Ripley &

Offering—Expected in mid-year.

General Electric Co.
Jan. 22, it was disclosed the
company will soon announce
plans for sale of new common

stock,

To

or

bonds,

Underwriter—Blyth & Co., Inc.

refinance,

which

mature

all

or

May

in

1,

part

$9,000,000

of

or both.
Proceeds—

bank

Gas

&

reported

Electric
company

Co.

is planning to issue
of new 30-year first

sell $5,000,000 to $6,000,000
mortgage bonds. Underwriters—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Kuhn, Loeb &
Co.; Salomon Bros. & Hutzler;
Merrill Lynch, Pierce, Fenner & Beane and Union Se¬
curities Corp. (jointly); Lehman
Brothers; White, Weld
& Co.; Harriman
Ripley & Co., Inc.; The First Boston
Corp. Proceeds—For 1952 construction program. Bids—
Expected in March.

Tampa Electric Co.

1952.

Service Electric & Gas Co.
Jan. 17 stockholders approved a
proposal-to increase the
authorized preferred stock from
500,000 to 1,000,000
shares and to increase the limit of
unsecured indebt¬
There are,

however,

no

present plans for addi¬

tional

financing.
In
November, the company sold
through Morgan Stanley & Cof, Drexel & Co. and
Glore,
Forgan & Co. an issue of 249,942 shares of 4.70%
cumulative preferred stock (par
$100), thus exhausting
the amount of presently authorized preferred stock.




Jan.

24

it

was

$52,000,000 for

announced

company

plans

to

spend

construction and improvements in
the next five years and
expects to enter the new money
market
this
year
to
finance' its
1952
requirements.
Latest bond financing was done
new

Traditional

Underwriter—Goldman, Sachs & Co., New York.
Texas
Jan. 23 it

Electric

Service

Underwriters—To

program.;

be

determined

by

com¬

bidding. 1 Probable bidders: Halsey, Stuart &
Co. Inc.; Kuhn, Loeb
& Co., Lehman Brothers and
Blyth & Co., Inc. (jointly); Salomon Bros. & Hutzler;
Harriman Ripley & Co., Inc.; Union Securities
Corp.;
Hemphill, Noyes, Graham, Parsons & Co. and Drexel &
Co. (jointly); Kidder, Peabody & Co. and Merrill
Lynch,
Pierce, Fenner & Beane (jointly); The First Boston
Corp.; Carl M. Loeb, Rhoades & Co.
Texas-Ohio Gas Co., Houston, Tex.
17 company applied to FPC for
authority to con¬
struct a 1,350-mile natural gas transmission line extend¬
ing from Texas into West Virginia. The project is esti¬
mated

to

cost

$184,989,683.

Texas

Power &

,

Underwriter—Kidder, Pea¬
.

Light Co.

determined

by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; The First BostorTCorp.; White,
Weld & Co.; Lehman
Brothers; Blyth & Co., Inc.; Smith,
Barney & Co.
Texas
of

Utilities
was

Co.

reported company plans issuance and sale

400,000. additional shares

of

held;

with rights to expire on
Underwriting—None involved.

par.

^ Trans World Airlines, Inc. '(2/27)
Jan. 30 it was-announced
company plans to offer for
subscription by common stockholders of record Feb. 27
a
total of 242,988 shares of common stock
(par $5) at

the rate of

$21.25
,

share

one

share.

per

for

each

10

shares held.

Registration—Expected

Transcon Lines,

Price—

Feb. 8.

on

Los Angeles, Calif.

Nov.

19 it was reported company
may be considering
issuance and sale of additional common stock
(par $10)
which will involve about
$200,000. Underwriter—Cruttenden &

Co., Chicago, 111.

United

States

National

Bank, Portland, Ore.

(3/1)
Jan. 8 it

announced company plans to offer to stock¬

was

holders the right to subscribe for
shares
share

of

capital stock

for

each

Proceeds—To

six

an

shares

increase

held.

capital

Expected around March

1

to

additional

on

(par $20)

basis of

Price—$50

and

100,000

one

per

surplus.

new

share.

Offering—

for about 30 days. Un¬

run

derwriters—Blyth & Co., Inc., and Merrill Lynch, Pierce,
Beane, New York.

Fenner &

Virginia Electric & Power Co.
Dec. 12 it

was

~

announced that company expects to

spend
1952, of
$30,000,000 may be raised through new
financing. The company is said to be considering a stock
issue next spring and a bond sale in the fall.
Under¬

$40,000,000
which

or

for

more

construction

new

in

about

writers—For stock, probably Stone & Webster Securities
Corp. For bonds, to be determined by competitive bid¬
ding, with the following probable bidders:
&

Halsey, Stuart

Co.

Inc.;

Union

Securities

Corp.;

Salomon

Bros.

&

Hutzler; Stone & Webster Securities Corp.; White, Weld
& Co.; Kuhn, Loeb & Co. and Wertheim
& Co. (jointly).
Washington Gas Light Co.
12

raise

reported

about

that

company

$4,500,000 from the

stock to

its

is considering plans to
sale

of

additional

com¬

stockholders

(there are presently out¬
standing 734,400 shares). Underwriters—The First Bos¬
ton Corp. and
Johnston, Lemon & Co. handled the offer¬
ing last year to stockholders. Proceeds—Together with
bank

loans

and

other

$6,000,000 expansion

funds

to

take

care

of

proposed

program.

'Washington Water Power Co.
Jan. 9 company applied to the SEC for
bank borrowings of
to finance

authority to make
$40,000,000, the proceeds to be used
contemporarily, in part, the company's con¬

struction program. Permanent
this year.
Probable bidders:

financing expected later
(1) For stock or bondsf
Blyth & Co., Inc.; Smith, Barney & Co. and White,
Weld & Co. (jointly); W. C.
Langley & Co. and The
First Boston Corp. (jointly); (2) for bonds
only: Halsey,
Stuart & Co.

Inc.

West Penn
Dec.

28 it

was

Power

Co.

(4/1)

announced

company plans to offer $12,000,000 of first mortgage bonds early in 1952, probably

Underwriters—To be determined by
competi¬
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Kidder, Peabody & Co.; Lehman Brothers; Blyth & Co.,
Inc.; W. C. Langley & Co.; The First Boston Corp. Pro¬
ceeds—For

tively

construction

scheduled

opened April
•

1.

Wisconsin

Jan. 23 it

for

Registration—Tenta¬

program.

Feb.

28.

Bids—Expected

to

be

'

Power

&

Light Co.

reported company is planning issuance and
sale of $8,000,000 of first mortgage bonds and
82,000,000
was

of

.convertible preferred stock (to preferred stockhold¬
ers) and additional common stock (to be offered first to
colmmon stockholders on a l-for-10
basis, with Smith,
Barney & Co., New York, and Robert W. Baird & Co.,
Inc., Milwaukee, Wis., probably acting as dealer-man¬
agers for both issues). Underwriters—For bonds, .to be
determined by competitive bidding in April.
Probable
bidders: Halsey, Stuart & Co.
Inc.; White, Weld & Co.
and Kidder, Peabody & Co.
(jointly); Kuhn, Loeb &

Co.; Salomon Bros. & Hutzler; Equitable Securities
Corp.; j$mith, Barney & Co. and Robert W. Baird &
Co.,
(jointly); Union Securities Corp.; First Boston Corp.;

Inc.

Jan. 23 company was reported to be
planning registra¬
tion in February for sale about
April 1 of $14,000,000
first mortgage bonds and
$5,000,000 of debentures. Pro¬
ceeds—For construction program.
Underwriters—To be

Jan. 23 it

shares

tive

petitive

body & Co., New York.

four

Price—At

in March.

Co.

was

reported company was planning issuance
and
sale
of
$8,000,000 of first mortgage bonds and
$5,000,000 of debentures, with registratioh expected in
April for bidding in May. - Proceeds—For construction

loans

Public

edness.

was

Oct.

Portland

Traditional

it

privately.

in

common

18

and

was

$2.50) through F. S. Moseley & Co.

each

April 1.

equity financing before June 30, 1952. Traditional under¬

Jan.

new

Proceeds—For expansion and working capital.

mon

revised

a

one

Jan.

writer: Blair, Rollins & Co.

an offering to stockholders
23,539 shares of capital stock (par $1) on basis

of about

Southern Union Gas Co.
Dec. 19 it was reported company is
expected to do some

Southwestern

of

Controls,

Hutzler; Harriman
(jointly).

Pipeline Corp.

Jan. 7 the company applied to the FPC for authority to
build a 2,175-mile natural gas pipeline from southern
Texas to the Pacific Northwest at an estimated cost

Penn

March 15, 1952 and due in
30 equal semi-annual instalments from
Sept. 15, 1952 to
March 15,
1967, inclusive.
Probable bidders: Halsey,
Stuart & Co. Inc.; Salomon Bros. &

Corp., Trenton, N. J.

Nov. 16 directors authorized

Ripley & Co. Inc. and Lehman Brothers

in

its

(jointly); Lehman Brothers
(jointly); Kidder, Peabody &

Co. and Merrill Lynch,
Pierce, Fenner & Beane (jointly);/
Union Securities
Corp.; Goldman, Sachs & Co. and Har¬
riman Ripley & Co. Inc.

before Feb. 20 for 100,000 ad¬

trust certificates to be dated

with

Union Trust Co.

Thiokol

application with FPC in
plan to build a natural gas trans¬
mission system in the Pacific Northwest to transport
gas from Canada to markets in Idaho, Washington and
connection

Thursday, February 7, 1952

.

stock dividends.

equipment

Jan. 7 company filed amended

*

in

will

proposal to increase the authorized com¬

on a

stock

Co., Pittsburgh, Pa.

announced

was

.

.

common

stock

early

in

Glore,/Forgan & Co.

'

...

Wisconsin Public Service Corp. ~
y
Sept. 4:,C. E. Kohlepp, President, announced

companj

plans to build
in Marathon

a $12,000,000 steam turbine
power plant
County, Wis. Method of permanent financ¬

ing has not yet been determined.

If bonds, probable
Halsey, Stuart & Co. Inc.; The
First"Boston Corp.; Harris, Hall & Co.
(Inc.); Kidder.
Peabody & Co.; Carl M. Loeb, Rhoades & Co.; Salomon

bidders

Bros.

may

include:

& Hutzler: Union Securities

Pierce, Fenner & Beane; Shields

Corp.; Merrill Lynch,

& Co.

,

Number 5088

Volume 175

.

.

.

promises to be one

week

Next

of the dullest in years

(Special

should

LOS

ing stage. Wednesday could bring

preferred of
&
Scott
to
along with 171,090 com¬

shares of
Merritt,
Chapman
market

the

chiefly to equity

turning

it

that a
in the

week

this

ties

appears

ahead

is

hiatus

further

security section ox the

debt

porate money market.

market

hand

to

accorded

were

together

meeting

monetary

whiclf

venture

Chemical Co.'s offer¬

shares of additional
indicative of the
general situation. Here the initial
response to the opening of sub¬

ing of 400,000

they

terialize

interest picked up
market appeared to
develop some recuperative power
while

been

holding a

last

mild

prove

by

this

had moved

met

LOS

occasion.

to The Financial Chronicle)

turity

billion will be
of tax notes.

been worked off.

billions from cash balances

and the remainder from bank bor¬

Street,

Eighth

West

325

Fox,

THE UNITED GAS

NOTICES

DIVIDEND

clared
(Special to The Financial Chronicle)

with

is

Siemers

A.
&

—

Gardner, 400 Locust Street, mem¬
bers

the

of

York

New

de¬

of

cents

10

per

outstanding capital
stock of the Corporation, payable
March 3, 1952, to stockholders of
record February 15, 1952.
MARSHALL, President

1

Electric

paid the issuer
for

3 y8%

a

about

competing

for

Co.

figuring out
$1,000 above the

coupon,

$3.19 per

regular quarterly dividend of Seventy-five
Cents (75^) and an extra dividend of Fifty Cents

ing Agents.

re-offering
price of 101.467 for an indicated
yield of 3.05% for the A A rated
paper. Evidently prospective buy¬
ers figured this basis was a bit on
set

group

Theodore

Pennsylvania

SPINNING

»NC

ASSOCIATES

share

19,

Board of Directors of the Berk¬

CENT

PER

or

$1.50

payable

STOCK,

PREFERRED

on

LAN E-WE LLS

per

COMPANY

April

to shareholders of record April 5, 1952.
declared a DIVIDEND of FIFTY CENTS

1952

Also

The

has

(lVP/r)

ONE-HALF

PINE

declared for quarter
1952 DIVIDEND of ONE and

Directors

ending March 31.

TECHNICAL OIL FIELD SERVICES

31, 1952

January
of

Board

Fine

shire

Dividend Notice

share on the NO PAR COMMON STOCK,
payable March 5, 1952 to shareholders of record
February 11, 1952.
G. F. CRONMILLER, JR.
Vice President and Secretary
per

The

Trying

on

a

the

current

situation

Reed,

with

8943

Inc.,

Waddell

Burroughs

Wilshire Boule¬

B.

irritating, at the

scarce

though

as

are

terly

CASH

as

those for public offering

it

is

expected that these

or

placement

operations

With H. Irving
(Special

SAN

to

Irving

is

now

associated

First

Lee & Co.,
Building.

Curtis Lipton
(Special

to The

Adds

Financial

Co.,

Lipton

338

South

at

Knowledge

territories.

Positions entail some

STANDARD

January

23,

S

1952

this

day declared

share

share

as

was designated as
extra, payable on

124,

Commercial

and

York 7, N. Y.

regular and $.25 per
March 13, 1952, to

the close of business,
February 11, 1952.

stockholders of record at

ou Mont

in all

MINTON, Secretary

phases of television

January 31, 1952.

DIVIDEND NOTICE
Shreveport, La.

COMMON
30 ROCKEFELLER

LEW YCF.K 20,

FLAZA

N.Y.

Western

dividend

quarterly

STOCK

68th Consecutive

on

DIVIDEND

Quarterly Payment

The Board of Directors
a

of Seaboard

regular

quar¬

terly dividend of 45 cents a share on
payable Apr. 10,1952 to

Common Stock

of $1,00 per

declared

been

has

stockholders of record Mar. 20, 1952.

the

The Board of Directors of the

Company has declared regular
quarterly dividends of 25 cents
per

and

share

15,

March

ness

business
helpful.
Good
in

Financial

March 1,

A

quarterly

share

at

1952,

,

declared

on

Stock payable

(crrrron
10,

the

March

stockholders of record
of business February 25,

to

the close

The

the close of busi¬

dividend of $.50 per

1952.

quarterly dividends of 65 cents a share
on $2.60 Convertible Preferred Stock,
33K cents a share on $1.35 Convert¬

4.5%

GREGG.

Vice-President and Treasurer

the

common

per

share

convertible
of the

payable

on

the

preferred

company,

March

stock

on

both

1, 1952,

to stockholders of record at the

close of business

February 8,

1952.

ible Preferred Stock, 33H cents a share
on

$1.35 Convertible

Series

$1.72
All

CLIFTON W.

STOCK DIVIDENDS
directors also declared regular

PREFERRED

stock¬

1952.

been

has

1952 to

on

$1,125

stock

$4Cumiilative Preferred Stock
payable

following

securities

cash dividend on the
share, of which $.75

a

capital stock of $1.00 per

February 4, 1952

,

State age and full particulars

Chronicle, 25 Park Place, New

Preferred Stock,

43 cents a share on
Convertible Preferred Stock.

Secretary

B, and

preferred dividends are payable

Apr. 10,1952 to stockholders

of record

Mar. 20,1952.

A. E. WEIDMAN
February 6, 1952

Jan. 24, 1932




has

per

THE FLINTK0TE COMPANY

both New York and

of

of the

COMPANY

OIL

(Incorporated in New Jersey)
RAIBOURN,
Treasurer

Finance Co. declared

traveling with expenses paid.

for right man.

Box

The Board of Directors

the close

1952.

15,

PAUL

'

acquaintanceship among dealer-broker firms

0

record

of

business March

Esso

Stock

Preferred

to

1952

1,

Chronicle)

ANGELES, Calif. —Sam
Hartman
and Anthony
F. Rose
are
now
connected
with Curtis

opening for a salesman in

confidence.

April

Cumu¬

LOS

established publishing house with good

future

Preferred

Na¬

holders of record at

or

shares of 5%

Common and Preferred

Salesmen Wanted

Chicago

this

quar¬

Bank

tional

share

an

regular

a

Convertible

Stockholders

©

H.

with

A

has

declared

of1 Allen
Inc.

dividend of $.25 per share on

payable

of

Directors

A. C.

Lee

Chronicle)

Financial

Calif.—Richard

JOSE,

Anderson

H.

The

Avenue.

so.

Long

of

Laboratories,

its outstanding

of twenty cents

dividend

A

Board
Mont

has

lative

Two With Mason Bros.

moment

virtually

will
pickup again in the next month

direct

Du

day

DIVIDEND

in sight.

deals

MILLER

B. Du Mont Laboratories, Inc.

The

&

207th CONSECUTIVE

nothing in the way of new issues

More

stockholders of

President.
Allen

vard.

a

seeking for investment,
shelves bare and virtually

private

stock payable March
to

February 20, 1952.

three o'clock P. M., on

of money

with

1952,

a

on

Secretary-Treasurer

A. Johnson,
J. Maresch, Elizabeth V.

associated

come

find

must

bit trying
on
their nerves. Here they are
assured that there is a plentitude

the

declared

have

WILLIAM A.

Nerves

bankers

Investment

common

15,

($.20) a
(Special to The Financial Chronicle)
share
has been
declared upon the
ported lagging.
Meanwhile
dealers went into
OAKLAND, Calif. — Arnold G. stock of BURROUGHS ADDING
the market to pickup other issues Turner and Emolyn Johnson are MACHINE COMPANY, payable Mar.
Mason Brothers, 10, 1952, to shareholders of record at
of the same rating where the cur¬ associated with
the close of business Feb. 8, 1952.
rent yields ranged from 3.08% to Central Bank Building, members
of the San Francisco Stock Ex¬
around 3.11%.
Detroit, Michigan
Sheldon F. Hall,
change.
January 29, 1952
Secretary
*

the

CHACE, JR;

G.

1952

31,

January

Directors

quarterly dividend of 30 cents

record

Margaret E. Williamson,
and Percy V. Woodford have be¬

inquiry was re¬

the lean side for

t

REFRACTORIES COMPANY
Pittsburgh

O;

Elvyn

Freeze,

Mass.

160 State Street, Boston,

HARBISON-WALKER

NOTICES

DIVIDEND

MALCOLM

Calif.—Leigh

BEVERLY HILLS,
B.

of Boston, Dividend Disburs¬

-

Paul E. Crocker, Secretary

to The Financial Chronicle)

(Special

declared payable

(50^) per share have been

February 15, 1952, to stockholders of record at
the close of business February 8, 1952.
Checks will be mailed by the Old Colony

Terry,

bid of the runner-up.
The

-

bids

price of 101.01

a

With Waddell & Reed

31,1952

Boston, January

A

payable March 1, 1952, to stockholders
of record February 15, 1952.

Exchange.

COMPANY

ITaWcsI

Trust Company

west Stock Exchanges.

000,000 of first mortgage, 30-year
bonds put up by Louisville Gas &

Stock

PEPPERELL
MANUFACTURING

the

on

FURBER

Mid¬

and

has

Directors

dividend

a

share

Harry

Reinholdt

Mo.

LOUIS,

of

Board

The

Joins Reinholdt Gardner
ST.

IP^PErPtELU

CARLISLE

CORPORATION

bought the $12,-

who

Bankers

Fine

It

Cutting

York

New

Philadelphia, Pa.

January 22, 1952

ANGELES, Calif.—Robert

Spinning Associates, Inc.
has declared a regular dividend of 35
cents a share on the Common Stock,

of the

members

IMPROVEMENT CO.

JOHNS HOPKINS, Treasurer

Chronicle)

sale of governments, 2.75

or

3.5

to

from ma¬

come

Inc.

623 South Spring Street.

pany,

surrender

Four billions will

per

February 29, 1952.

Mich.—Thomas
is with Waddell & Reed,

Fomon, Frank Smith Harryman, and M. Wallace Weldon are
now
with W. E. Hutton & Com¬

provision for nine bil¬
on
that date and

1.2

The Financial

quarterly dividend of 35c
share on the Capital
par value $13.50 per
share,
has been declared,
payable March 31, 1952.
to stockholders of record

A

M.

out that corporations

that

by

DIVIDEND NOTICES

Stock,

(Special

-

Union
of

Co.,

members
Exchange.

Mass. —William
joined the staff

With Waddell & Reed
•;

Stock

Midwest

Moss

to The Financial Chronicle)

KALAMAZOO,

(Special to

Turben
&
Building,

Merrill,

Street.

Stock Ex¬

Three With E. F. Hutton

the

indicated

was

with

& Irving Co.,
Building, mem¬

Cincinnati

the

Caldwell

the

Co.,

Chronicle)

Financial

to The

R.
Kitchel
has
of
Preston, Moss & Co., 24 Federal

change.

that rowings. Unless steps are taken to
ease this potential squeeze he sees
momentarily at least the situation
a
heavy deficiency in banks' re¬
basically is at least temporarily in
serves position as a possibility.
favor of the
vendor. Aluminum
Co.'s
big
issue
of
debentures
Joins Stern, Frank
moved so well,, as did the United
Gas Corp. issue that the secondary
(Special to The Financial Chronicle)
market has recovered price-wise
LOS ANGELES, Calif.—Alfred
to a level where the few remain¬
N. Bennett has been added to the
ing remnants of recent deals have staff of Stern, Frank, Meyer &
it

cerned

Roth

Terminal
of

bers

—

f>3

CLEVELAND, Ohio—Robert E.
MacKenzie is now associated with

the

BOSTON,

associated

now

Weil,

Dixie

taxes

figures

debt securities are con¬

Where

The

unless

in

market

Treasury

on

in

lions

quite satisfactorily.

up

is

Sherrill

to

as

that,

happened

could

must make

might have
little stock it ap¬

peared that the issue

far

so

opinion

He points

dealers

and

mid-March

Ohio

CINCINNATI,

comparison with what could ma¬

stock

the

as

goes

what

December

but

side

dull

the

do,

short-term

bit on the

scription books was a

of

stringency

the

was

common

Weil, Roth

D.

Commerce

Joins Preston,

and

York

New

L.
and

Street,

With Merrill, Turben
(Special

to

added

Mathews

E.

the

of

members

Street.

W. Peck
banker

One

public in¬

terest.

Monsanto

of

means

on

for

looms

the

tax date.

they reflected the

of substanial

presence

State

53

been

Walnut

326

Company,

Cincinnati Stock Exchanges.

Mass. —Norman

has

is with Westheimer

Gardner

Chronicle)

Financial

Edward

of

Spring Street, members of the
Angeles Stock Exchange.

Joins

obligation

the

getting

favorable reception.
This
does not mean that they encoun¬
tered a headlong rush of demand,
tively

but rather that

staff;

(Special

and

Reserve

face

Treasury

rela¬

a

South

634

to The

McKenzie

Los

quarters is that

some

Federal

the

offerings which came

new

Co.,

&

staff

the

to

(Special to The Financial Chronicle)

Feeling in

the

of

added

been

Morgan

Outlook

Market

Treasury

rather somber be¬
seasoned
equity

the

Despite
havior

of

next

on

ANGELES, Calif.—E. Du-

has

current prospects.

week's

cor¬

LOS
Rae

But

common.

book

the

closes

that

Co.

Tool

Keller

of

Middlebrcok, Incorpo¬

BOSTON,

(Special to The Financial Chronicle)

shares

86,750

of

offering

public

securi¬

Mass.—Jeannette E.
joined the staff of

rated, 75 Federal Street.

(Special

Ohio—Ralph

CINCINNATI,

E. E. Mathews Adds

will open bids for $8,250,000
of equipment trusts.
Thursday (Feb. 14) could bring

market

issue

new

has
&

Coburn

Morgan Adds to Staff

day Chesapeake & Ohio

same

Ry.

With

Los An¬

Thibault

shares of the Oliver Corp. On

mon

the

BOSTON,

ANGELES,

Street, members of the
geles Stock Exchange.

to The Financial Chronicle)

(Special

Chronicle)

Financial

Calif. —Wil¬
liam L. Farrington is with Marache Sims & Co., 634 South Spring

perchance be brought to the offer¬
100,000

to The

47

Joins Westheimer Co.

WithCoburn&Middelbrook

With Marache Sims

unless some

underwriters

negotiated

(607)

Chronicle

The Commercial and Financial

Treasurer

TEXAS

EASTERN

.

^

T

48

The Commercial and Financial Chronicle

(608)

.

.

The theory of this is that if OPf

BUSINESS BUZZ

should
tors

Washington...
Behind-the-Scene Interpretation*

>|

jlM.II/IM/

from the Nation's Capital

-

Y

decontrol

of

the

y"

sell

/"''

Martin

of

extending "standby" con¬
legislation longer.
In othei
by seeming to decontro
the OPS might be able to dissi¬
words,

JL MM MM/

the

■fteserve

Board

the

on

Federal, for perhaps the
first time within the memory of

officials

Truman,

these

L.

Mills,

President
of

of

Senator

Frear,

Democrat, heads

last

national election

SEC

over

His
out,

Comp-

Kobertson, Senior Deputy

■troller of the Currency. Robertson

fs

individual

unusual

an

financial

ernmental

in

gov¬

other cir¬

or

cles, in that he not only is totally
disinterested

"empire-build¬

in

with

Cabe

Eccles-Mc-

former

the

leadership

the

of

Federal

^Reserve Board, the Board backed
-the idea of using the power of

examination

bank

direct

to

the

broad channels of bank endeavor.

3Ln

other words,

would

vive

the Federal Re¬

(in

the

have

past)

Pked to have used bank examina¬

tion

as

ning,

an

of economic

arm

encouraging banks

two

has

years

for

Frear

been

ting

jurisdiction

itself

Dr.

sympa¬

unlisteds.

the

However,

subcommittee

is

subcommittee
final

A

is

making

decision

vertising

House

study,

has

not

been

made,

lend

5n deflationary times, or to refrain
f.rom lending in inflationary times.
Kobertson

this

gave

idea

any¬

thing but aid and comfort. He took
•the

view

existed

that

for

bank

the

examination
purpose

of

checking into the soundness of the
-condition

of

depositors.
3>ank

banks,
He

judgment

"bank

on

behalf of
having

opposed

examiners

for

substitute

the

their

judgment

management

of

lending

on

policies and economic trends.
The

Lias

a

with

Deputy

Comptroller

also

reputation for getting along
state

whereas

supervisory

there

have

officials,

been

»>:v

hand, and the Reserve Board

the other, or between the state

on

supervisors and

the

FDIC.

J. L.
serve

Robertson brings the Re¬
Board its first member with

intimate

tin

ventional

As

for

another

term

of

knowledge of con¬
supervision, both

bank

few

months

this

column

the

ago,

a

preferred

Senator

Harry F.
Byrd of Virginia. The insiders be¬
lieve that Byrd is better known,
especially outside the South, and
might carry more votes.
was

as

Senator, how¬

a

expires with this Congress
he

stand"

must

for reelection

this falkor retire. Since the prime

of the States' Rights

purpose

is

ment

not

to

elect

move¬

President

a

to

try to swipe enough elec¬
votes from Harry Truman

relieve

him

of

making

sacrifice of another term of

ice, it is felt there is

this

is the

one

prospectus for the prospectus!"

strategy to put Taft
the spot with the rank and file

figured
on

no

more

the

that they can

in public life.

figured out

bring in

four special

or

series of

a

laws

these

of

is

the

can

run

without giving

the

as

States Right condidate for
dent

Presi¬

his Sen¬

up

ate seat.
The southern conservatives have
not decided finally whether they

will "take

walk" if and after the

a

Democratic

national

convention

renominates Truman
in 1948,

they

as

wili

whether they

or

did

proposed

still

thought

won't put

the

that

South
to

GOP

and

Dixiecrats

should
the

on
can

nominate

theory

that

carry much of the

thus

make

it

possible

The Budget

*

*

this space

few

a

toughest kind of
even

Sold

if

should
—

Quoted

the

to

reau

Prospectus

OK

is

pretty

Request

safe

would

a

Members N.

37

Y.

Nat'l

scheme,

doubtful.

the

executive

for reelection.

Some

time

during

send

down

detail

his

So

outlining

message

kind

the

the
next
expected to
materials

of

ably

President's proposals have already

would

election
Hubert

The

boys

against

it

However,

year.

Humphrey

Americans
tion's

pass.

vote

to

for

are

in

an

Senator

Minnesota,

of

Democratic

stitute

new

a

bill

certain

at a

proposes

for

to sub¬

the

Neely

anti-inflation controls he de¬
The

The

bill

new

would

set

up

a

new

one

that

boys worried.
a

fering

ment to

get

It looks like

little too aggressive in of¬
the affections of govern¬
the workingman.

Other
cooked

ing

labor
up

Taft

these

up.

take

legislation

a

the

being

position—against
unions

on

mass

that "

hope—are

attitude

thing
bureau
is

It

is

a

over

the

controls

are

in

should

inflation

again later in

ing

of

pretty

for

now,

the

Con¬

somewhat

-

New,

announce

joined the

associated with

now

Schenectady office, 121 Wall

Street,

both

registered

as

repre¬

de Simone Director
Guy de Simone of Security Ad¬
justment Corporation, 16 Court St.,

Brooklyn,
elected

New

South

Lyon,

Mich.,

He

United

has

been

of

Michigan
Corporation
of

Tube

announced.
of

York,

director

a

Seamless

is

it

has

also

been

director

a

Piece

Dye
Works,
Corporation
and

Silk

Southwest Penn Gas Corporation.

With Barrett Herrick
(Special

to

The

Financial

Chronicle)

BOSTON, Mass.—Tom Speak is
Barrett

Herrick &

Co., Inc.

break

would

be

will

date

be

a

move

to

Large

out

WE

used

set

CLASS B

than

from the GOP

A

in

(common) STOCK

leading

producer

fast-growing

Analysis
a

of

review of

this
the

try available

probably will fail.

the

of DPA will bear close

cement

Southern

watching.

on

Company

and

Cement Indus¬

request.

extension

boycotts.

of

California.

members, and

proposals to modify the Commun¬
ist affidavit, the union shop, and
restrictions
against
secondary

Potential

SUGGEST

RIVERSIDE CEMENT CO.

a

July 26, 1951, for
figuring increased costs ip set¬
ting price ceiling relief.
This,
however, will get poor support
even

Appreciation

junk¬

against them.
There

For

much
reason

the year the

controls

One of the

prize propo¬

Another
in

possible

connection

with

sals in this package is a bill which

Some substantial
the

raise

the

compulsory Fed¬

minimum wage

to

$1.25

per

hour.

I

-

Administration supports sub¬
stantial decontrol by administra¬

/

1

\

/

/

* i

%

1

§

ll*/4

LERNER & CO.
Investment

elements within

10 Post Office

Securities

Square, Boston 9, Mass.

Telephone

Teletype

HUbbard 2-1990

tive action.

*?,

Available around

development

B3 69

m
m*

Trading Markets in

Allied Electric Products

FIRM TRADING MARKETS

FOREIGN

Hi

SECURITIES

MS

Kingwood Oil

ipp

even

approved

Veghte is

with

the

Congress.,

Exchange,

Henry

W.
the

Phoenix

clear

The Congress cannot get
at this
time
about the

they

late

with the idea of mak¬

bills

Bache

members

Nevertheless, with obvious re¬
luctance, Congress probably will

It will

lot of people stirred

a

opening

dangers of inflation.

extend

being

Stock

an

Walter

14 years.

firm's Miami Beach
office, 96 N. E.
Second Avenue, and that

1

schemes.

as

has

at the

the

gress at the
present moment is
the almost complete apathy of the
members
toward
anti - inflation

of industrial

Deal"

of

session.

The

bureaucracy
within
the
Labor Department to provide for
Federal inspection and regulation
safety in all industry.
gotten even the "Fair

outlines

messages the President sent to the

worried

huge

main

been made known

Ac¬

gift to the membership of

Senate,

stage in the proceedings,

Co.,

J.

sentatives.

sires.

afraid

&

Pre~j

been

with

that Sam Williams has

as
up

planners

planning,

which

had

he

PARL MARKS & PP. INC.
FOREIGN SECURITIES SPECIALISTS

Southwest Natural Gas

51

Standard Cable

MM

Security Dealers Ass'n

Ass'n

Way St., N.Y.
Bell

Budget

the

iCoi

ireen.e<miVompaT\^

Members

kick

the

ago,
over.

being delayed.
bet

T-H, as well
of the Senators

Budget bu¬

start

a

if

the

the

industrial

scheme
on

going

economic

persuade

civilian

weeks
a

for

many

provide for Federal mine inspec¬

"input-output" scheme reported in

—

good

a

tion, and standing by itself, prob¬

eral

Bureau is giving the

lot

a

majority of the

a

would

defeat Truman.
:;t

FIBERGLAS CORP.

the

candidate in the field

a

making

and

hold

later rump convention. Senti¬
ment leans toward the latter. It is

Eisenhower

Eought

House voted

in

a

Eisenhower,

Common Stock

reelection, and

Neely mine safety law. This would

bill.

He

are

of their friends pretty sore. All of
the House, of course, comes up for

This

hence.

years

Taft" the

"get

January,*

account executive.

Two With
York

to

week the President is

Dick Russell's

term, on the other
hand, does not expire until three

a

seem¬

the spot."

on

their zeal

Big Labor boys

ingly beneficial to labor, and "put
Taft

the

sacrificing Byrd's prominent place

effective bugaboo, the

an

Big Labor boys have
three

In

a new

of union labor.

serv¬

point in

no

holds

Philosophy

since

agency

Bache

One

Byrd's term
ever,

if

OWENS-CORNING

and

Recognizing that Taft-Hartley is

in

of

Thompson & Co. for

0

reported

candidate

to

as an

viously thereto

reluctant service.

but

the

1950

how¬

many

scraps, most of them under cover,
"between state supervisors on the
*mc

him

draft

toral

sole

with

its

account
*

Knipfing

University of Ghent in]
Belgium and has been associated

ever,

and

Doctor

of

from* the

to

completes

group

Dr.

degree

postpone the Frear bill until after
the

Law, Inc., ad¬
according
to.
Calkins,
agency

W.

•

Chairman.

study.

a

Agency

Knipfing has been

agency,

Howard

hesi¬

whether

on

R.

Vice-President of Albert

a

Frank-Guenther

Senate

somewhat

John

elected

the

over

re•

Kjiipfing V.-P.

Of Albert Frank

the

thetic with the SEC's idea of net¬

plan¬

to

over.

not coincide with
"Chronicle's" own views.)

Dr.

jursidiction

Senator Richard B. Russell of
Among other things, Robertson
publicly backed and activaly sup¬ Georgia is now slated to be the
ported' a
bill
which
Congress States' Rights candidate for Presi¬
passed, removing certain archaic dent, anticipating that President
impediments to the transfer of a Truman persuades the Democratic
^rational bank to a state charter. national convention next July to

Under

was

pretation from the nation's Capital

Delaware

a

matters.

ing," but has publicly shunned it.

„

were

i

affecting the SEC, while the House

was

or

(This column is intended to

Senate Banking

a

J. L.

appointee

inflation¬

imagined to appear—and after the

tant to bring out major legislation

other

when

appeared

the

to

/2f'«*esignation of Marriner S. Eccles.
The

woulc

reinstitute

the

•City
Bankers
Association.
background,
it
is pointed

4gives the Board its first member
with
long practical commercial
banking
experience
since
the

regulation

to

and may or
may

subcommittee

of

which

fleet the "behind the scene" inter¬

30 -years' experience,
and has been active in the Reserve
banker

books

freedom

pressures

Th*

Interstate Commerce Committee.

Portland, Ore. Mr. Mills rates
an
outstanding
commercial

jus

level

million

$3

Congress

legislation stand¬

Heller subcommittee of the House

National

S.

U.

the

to

appointees was
Senior
Vice-

the

OPS

of

controls.

reporting requirements of the SEC
may be held up as a result of the
current study of the SEC by the

elements of strength.

of

pro¬

posal to subject corporations down

•

One

Frear's

the

on

price

<•

Allen

J.

alertness

arbitral y

would be

give
ary

Senator

conservative
Senators note, has made it possi¬
ble for the Board to add important

Abbot

0

0

viduals he selected for the Board,

President

ing

active in this capital.

now

indi¬

two

price

state and

Federal

the

of

sec

pric<

it might be possible tc
apathetic Congress on th<

an

idea

against

Chesney

from

ceilings,

t,

pate

WASHINGTON, D. C.—In going
nlong with Chairman William Mc-

substantial

economy

trol

ri

«|

^ -V -

-.

Thursday, February 7, 195:

.

of Secur,

Dealers

Tel. HAnover 2-4850

Teletype—NY 1-1126 & 1127




Labor has not
forgotten that
Senator Taft sold himself to
labor
in Ohio
despite the "slave labor"

Taft-Hartley

law,

so

the

well-

heeled big
walking delegates have

50 BROAD STREET...NEW YORK 4, N. Y.

TEL. HANOVER 20050... TELETYPE: NY 1-971

Hill, Thompson & Co., Inc.
Trading Department

70

WALL

STREET, N. Y. 5

Tel. WHitehall

4-4540

t

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