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In 2 Sections
ANNUAL REVIEW AND OUTLOOK ISSUE
Commercial and
2
Rue-. TT
New York 7,
Number 5396
Volume 181
EDITORIAL
THE
The relative
We Se
YEAR AHEAD
with
but it is almost a rarity to find
definitely optimistic.
J
one
result of
who is
is
well known
series
that
a
by the exceptional activity in the automo¬
what
combination
shape
our
would otherwise be
talk
as
HERBERT
reader with up-to-
the
to the indicated course
of
herewith:
BROWNELL, Jr.
:
anticipated Final Report of the Attorney General's Na¬
discernible, and
with
tional Committee to Study the Antitrust Laws.
some
in
us
been
an
we can
Washington,
as
is
The
James
Goods
SECOND
prices
areas
to
more
Herbert Brownell, Jr.
antitrust
its goal will be to
C. Worthy
probe
more
marked
traditional
points
labels
of antitrust
that have all too
often
Recommendations
to
91
that
have
some¬
disagreement—labels
for not thinking.
rapid shifts
page
beyond those
times
dem¬
The sounder governon
order
basic
become little
than
more
excuses
proposals
may cover
Congress for legislative change, advice to enforcement
about administrative
policy
suggestions
or
to
address
by Secretary Worthy before the National Retail Dry
Association, New York City, Jan. 10, 1955.
SECTION
of
in
secure
In all
goals.
v/ill
changes
effectively
agencies
73
econo¬
anti-trust
suggest
Continued
*An
as
time this February.
aim to evaluate
operation
and
some
Report
current
Business once
particular segments of demand.
well
*
Report
has
onstrated its flexibility under conditions of
in
practicing lawyers,
as
Justice, and Dr. S. Chesterfield Oppenheim, Professor of Law, Univer¬
sity of Michigan. The target date for
'.submission
of
that
group's
Final
I know
with remarkable smoothness.
,
.
Its
,
potentialities the
shifted from
being
mainly concerned with restoring our
military strength, to again satisfy¬
ing more broadly the wants of the
consumer.
In retrospect, it is clear
that the transition was accomplished
Possibly there is somewhat greater tend¬
hedge forecasts for that more distant
period—probably, if for no other reason, because
distance lends uncertainty to the view. But by
professors,
was
ago.
and is headed by Co-Chair¬
men, ' Assistant
Attorney
General
Stanley N. Barnes, head of the Anti¬
trust Division of the Department of
business, the past year has
encouraging one as
the
economy
to
law
months
15
some
members include
-
.,
degree of assurance
of the
some
Committee
60-man
That
formed
tendencies
are
now
and
the antitrust horizon for 1955 is the
on
of
today's
stock
every
DEALERS
and
ANNUAL REVIEW ISSUE
bond
in
issue
we
Continued
on
page
34
show monthly high
dealings occurred
which
the New
on
York Stock Exchange during 1954.
State and
in
★
U. S. Government,
State and
Municipal
ALL
»
MARKETS
ONE
CALL
IIAnover 2-3700
U. S. Government
—
Municipal,
CHEMICAL
Corporate & Foreign Bonds
Preferred and
*
bond
department
Sixty Years of Brokerage Service
* Members N. Y. and Amer. Stock Exchs.
ST., N.
115
Broadway, N. Y. 6
Bell
*
System
New
^
*
THE NATIONAL CITY BANK
OF NEW YORK
RE 2-2820
Teletype NY 1-2152
Chicago
Miami
Bond Dept. Teletype: NY 1-708
To
Active
Maintained
Markets
Dealers,
Banks
and
UTILITY
COMMON
FIRST
BONDS,
American Stock
STOCKS
^OUthlDid COMPANY
Dallas
Exchange
50 BROADWAY, N. Y.
BRIDGEPORT
-
PERTH
AMBOY
Bond Department
CHASE
THE
•
Pittsburgh
Coral
NATIONAL BANK
Gables
Beverly Hills, Cal.
OF THE CITY
OF NEW YORK
Switzerland
Holland
The
Canadian Bank of
Orders
Executed
Canadian Exchanges At
CANADIAN
On
DIRECT
WIRES TO
MEMBERS
NEW
NEW
YORK
COMMON
Markets Maintained
Analysis
upon
request
DEPARTMENT
MONTREAL AND TORONTO
Goodbody & Co.
115 BROADWAY
Gas Company
Rights
All
Regular Rates
Arkansas Western
Commerce
Teletype NY 1-2270
Members N. Y. Stock Exchange
AND
•
Brokers
CANADIAN
Commission
INDUSTRIAL
•
Geneva,
SECURITIES
PUBLIC
Detroit
Amsterdam,
Customers
T.LWatson&Co.
•
Beach
Hollywood, Fla.
Net
PREFERRED
Exchange
NEW YORK 4, N. Y.
♦
122 Years of Service
AND
Cotton
Inc.
Trade
of
N. Y. Cotton Exchange Bldg.
★★★★★★
to Our
Exchange
Exchange,
Board
Orleans
Bonds
Exchange
Exchange
Cotton
end other exchanges
Common Stocks
MABON & CO.
Stock
Stock
York
Chicago
*
30 BROAD
New
Commodity
EXCHANGE
BANK
Municipal
Members
York
American
State and Revenue Bonds
All
1856
H. Hentz & Co.
*
Complete Brokerage Service
*
CORN
ON
New
Securities
telephone:
Established
★★★★★★
YORK
STOCK
EXCHANGE
Dominion Securities
Grporattoti
40
Exchange Place, New York 5, N. Y.
IRA HAUPT &CO.
Members New York Stock
and
other
111
Teletype NY 1-702-3
WHitehaU *-8161
Boston
Exchange
Principal Exchanges
Broadway, N. Y. 6
WOrth 4-6000
1 NORTH LA SALLE ST.
CHICAGO
,
These forecasts, written especially
Attorney General of the United States
caution, there
trends
To
year.
low
government
to the probable trend of business
as
year.
official views
HON.
mists,
my necessary
to you in
given their full weight, the outlook for at
the first half of the year is, according to
almost all witnesses, definitely good. There are,
as usual, those soothsayers who think their cry¬
stal ball offers a glimpse at the second half of the
the
of
business in all industries. The statements begin
future holds.
least
In
the-minute
.....
certain
about
are
and
the decade
that
when these and other special factors
page
opinions
CHRONICLE; provide
for the
will
events
are
Naturally, this is be¬
ing reflected in various industries supplying the
motor industry, and in some of these also a policy
of inventory accumulation has been inaugurated.
on
5
Despite
of
economy, over
ahead.
doing.
Continued
current
Looming large
industry, and it seems to be widely accepted,
as a fact that anticipation of labor troubles some¬
what later in the year is leading these manufac¬
turers to stock up more heavily now than they
ency
financiers
and
ers
undertaking to talk about "The Next Ten Years
in Retailing," I must stipulate at once that I have no
more
insight into what the future holds than any of
you.
No one can predict with any degree of assurance
commonly employed to measure current
are being somewhat thrown
even
individual
the
ISSUE
in the
In
bile
But
in today's ANNUAL REVIEW AND OUT¬
and trends in economic conditions.
volume of business
awry
custom of former years, the CHRON- '
our
officials and of the country's leading industrialists, bank¬
of the military take of nation's total out¬
Urges retailers prepare systematically for shifts
put.
of the statistical
number
LOOK
the proportion
The fact
inventory accumulation.
Continuing
1CLE features
(4) heavy Federal and local government expen¬
ditures; (5) opportunities for increased foreign trade
and foreign investments, and (6) gradual reduction in
course, that an ap¬
preciable part of the current high rate of activity
a
by 1965,
economy
ment;
j It is generally realized, of
is
$500 billion annual
a
(2) expand¬
ing technical research; (3) high level of capital invest¬
during the next half
year,
not
Assistant Secretary of Commerce
continuing high rate of population growth;
observers who harbor doubt about what the
state of business is to be like
Retailing
Secretary Worthy cites the vast consumption that will
arise from our growing population and the heavy capital
outlays of industry and government. Lists as basic eco¬
nomic factors underlying the economy's growth:
(1)
outlook at the present moment and
which these opinions are held
some
jftNJSl-^955
N. Y., Thursday, January 20, 1955
By HON. JAMES C. WORTHY*
Predicting
unanimity of view about the busi¬
the vigor
stand in
strong contrast with the situation as it existed
twelve months ago.
There are still, of course,
ness
Off! oa
*»nt.
fi
Next Ten Years in
As
•
Secti
—
Teletype NY 1-2708
Telephone:
Enterprise
1820
2
(258)
For
'
The Commercial and Financial
The
Banks, Brokers, Dealers
Security I Like Best
j
American Phenolic
This
Forum
A continuous forum in which, each week, a different
group of experts
in the investment and advisory field from all sections of the
country
Chesapeake Industries
participate and give their
Eastern Industries
reasons
for favoring
(The articles contained in this forum
Foremost Dairies
they to be regarded,
are
offer
as an
a
particular security.
be,
to
Their
Combustion
sell the securities discussed.)
to
Haile Mines
MAURICE
Holly Corporation
.
v'
TV
Combustion
My favorite
Metal & Thermit
to
Transmission
American
taI
would
in
have
which
employed.
our Navy,
The company has developed
,
of
Be-
rehabilitation
of Combustion
neering Inc. boilers,
coun-
I
In the next 10
load
power
-
to
growth
will
in
occur
The
$15,000,000
the
in
3%%
of
—
Atomic
Stock
Exchange
in
the
a
the T.V.A.
boiler the company furnishes
is the following: it
will
generate
quired for
supported
150
Alabama-Tennessee Natural
feet
250,000 k.w. turbine
a
on
Company
coal
of
for
cost
Scott, Horner &
Mason, Inc.
steel
hour.
per
took
value
is
One
It
iy2
about $6,000,000.
understand why ComEngineering Inc. designed
General
Bay Lumber
Electric Co.
Sea Wolf, the newest
atomic-powbuilt
submarine.
ZILKA, SMITHES & CO.
1
U
^
V
It
all
the
Hoechster Farben
Badische Anilin
Liquid.
York Stock Exchange
25 Broad SL New York 4, N. Y.
Tele. NY 1-3222
the
Hanford
manufactures
company
suitable
above
for
operation
below
critical
or
The du Pont Co. selected Combustion
Engineering Inc. alone to
over
100 chrome
alloy steel
towers for powder plants.
Combustion
Exchange
Exchange
NY 1-1557
*
Orleans, La. - Birmingham, Ala.
Mobile, Ala.
Direct wires
j.
ment
basis,
share.
on
book
stock
common
On
to
branch offices
our
The
replace¬
value
is
of
about
SECURITIES
the
$75
stock
common
JAPANESE
common
a
listed
the New York Stock
have unusual appeal
may
a
,•
to
investors
investors
-
Exchange,
presently is selling at 22 Vs, a level
of
expected
the basis
on
prospects.
with
with
vision—
knowledge
Japanese potential.
far below that of recent years, and
far below that which
might be
Call
write
or
of
current
Yamaichi
a
14-year
Securities Co., Ltd.
„
had
company
of
continuous
dividend
Established
Home Office
Brokers
1897
Tokyo—70 Branches
Investment
&
Bankers
Broadway, N.Y. 6 COrtlandt 7-5680
COMING
e
power
be
converted
to
the
Jan. 24,
Bond
demand
red
•
high
that
inp'ropco
f?
.H™h,T"7
a
,
.g
tit
amount of coal
a
~
re-
being
of the reasons
why electricity
rates
have
not
increased.
The
Commission's reshowed that two-
port for 1952
thirds of the most efficient
power
stations in the country had Com-
busticm Engineering Inc. boilers.
In the marine field the
company
literally kept the American Mer—
chant
Marine
afloat.
At
the
height of the
war
100
at
ships each
STOCK
the
M0RELAND & GO.
(Chicago, 111.)
Members
Midwest
Detroit
1051
Sherman.
Stock
Stock
Exchange
Exchange
Penobscot Building
DETROIT 26, MICII.
1955
Woodward
(Baltimore, Md.)
Baltimore Security Traders As¬
sociation
annual
Mid
Wintei
Dinner at the Lord Baltimore
COLONEL WILLIAM FREIDAY
-
Branch
2-3855
DE
Office—Bay
City,
75
Mich.
-
& Co.
Hotel.
New York City
Members, New York Stock Exchange Feb. 25, 1955
(Philadelphia, Pa.)
M
.
„
.
.
Investment Traders Association
.
Motor Products Corporation
of
Motor Products
Corp. has in the
past been known as a speculative
stock.
This
its
is
close
primarily
association
because
with
Mar, 11, 1955
New York
March
23-25,
Pa.)
Association
highly
volasales and
tile
earnings,
The com¬
Pany is the
largest maker
0 ^
metal
stampings for
Y.)
1955
of
(Pittsburgh,
Stock
Exchange
Firms meeting of Board of Gov¬
ernors.
April 24-27, 1955 (Houston, Tex.)
Texas Group Investment Bank¬
Association
ers
spring
meeting
at the Shamrock Hotel.
m<*ustry.
National
business is accounted f°r by
cial
May
of
Analysts
Hotel
stampthe C„l. w,ham Pre,day
finishing thereof, mostly for the
Federation
Societies
Commodore.
18-21,
1955
(White
Finan¬
at
the
Sulphur
Springs)
Spring
meeting
earnings record was poor in
Governors.
1954> owing in part to the difficul- Sept. 11-14,
tles experienced by Chrysler
land,
Inc.
"Ipected to
in ft! March
a shar"
While
quarter'
no
estimates of
of
Board
of
now
being
given
mu
u
i
(Mackinac
Is¬
I1® balance of Motor Products
?usinej* 15 accounted for by its
U?? °£.freezers and refrigerators.
Jklsi7e.was COm?le.toly rade"
last year, and it has been
received by the public. These
Products are marketed under the
lon£ established
trade
name
nation
"Deep
and include
Freeze"
a
combi-
refrigerator-freezer offer-
in
India,
Aden,
Pakistan, Ceylon,
Kenya, Tanganyika,
Uganda, Zanzibar,
and
Somall-
land Protectorate.
Authorized Capital
£4,562,500
Reserve
Capital
£2,851,562
£3,104,687
Fund
The Bank conducts every
description of
banking
and
exchange
business.
Trusteeships and Executorships
also undertaken
16-17 (Chicago, 111.)
Investment Bankers Association
Fall
meeting of Board of Gov¬
N. Q. B.
ernors.
Sept. 21-23, 1955 (Denver, Colo.)
Association of Stock Exchange
.
Firms meeting of Board of Gov¬
r
Branches
Sept.
Chrysler
jngs
to the Government In
Kenya Colony and Uganda
Office: 26, Bishopsgate,
London, E. C. 2.
West End
(London) Branch:
13, St. James's Square, S. W. 1.
Head
Paid-Up
1955
National Security Traders Asso¬
ciation annual convention.
earnings per share are available,
14 is thought that the good recepj;on
Bankers
Burma,
Investment Bankers Association
autom°tive industry.
NATIONAL BANK
of INDIA, LIMITED
May 8-10, 1955 (New York City)
1 *s
.
(New York, N.
Security Dealers As¬
sociation 29th Annual Dinner at
the Biltmore Hotel.
automobile
industry. This
hjas resulted in
0 7° 0
ho«R '"Of.
Philadelphia annual dinner
Benjamin Franklin Hotel.
at the
the
.
one
COMMON
Chicago
dinner
meeting
of
National
Committeemen
at
the
Hotel
rAIAXTrT
;ur0m products will be substantially reapound—that three- fleeted in Motor Products' earn^?n,
Power
1955
Jan. 28,
fal,e 3 k.n
J
rinarw!? ,?f
quarters of
winter
of
Mich.)
temperature
n
Club
ciation
favorite
stock,
Engineering
pressure
SOLD
L. A. DARLING CO.
(Chicago, 111.)
National Security Traders Asso¬
Combustion
-Partner, J. Robinson-Duff
—
QUOTED
Field
Furniture Club.
Jan. 24,
of
use
1955
Traders
annual
Atomic Energy, it becomes evident
my
Investment
Jf.ew
scheduled to expand at a greater
rate than other factors of the econorny and its power facilities about
to
BOUGHT
EVENTS
u
With the world's
ft! eft!trk Ttfttv "industv8 th! show
high
Federal
(9flpmheimeJi <£
for
pressure
unite
Bayer
units
plant.
The
build
Trading Markets in
HAnover 2-0700
New
excellent.
book value of the
In
on
+
/
some
either
PD 155
?
tion
boilers
Portland-5-Oregon
The
^ J1 e automo-
Atomic
Phone: HA 2-9765
Schenec-
power
—
'
111
York Stock Exchange and selling
pa^ST.f
dividends to yield about 5/2%.
boilers for the giant Atomic
plant at Oak Ridge and in addi-
Medford Corp.
New
in
ered
i
Longview Fibre
Members
of the most
one
tady and is designing and fabricating parts for the nuclear power
plant to be installed in the U.S.S.
Cascades Plywood Co.
^e04
v
of
important components of the prototype nuclear power plant at the
Trading Markets in
Farben
designed
can
bustion
Active
is
to build it in
years
and manufactured
Active
sidered
and
the company's plant, and another
year to erect it at the site.
Its
LD 33
Stock
Stock
regard to increasing the efficiency
of its labor operation and reduc¬
ing costs. Labor relations are con¬
'
.
The boiler,
2,275 pounds of pressure. It
$100,000 to draft its design
and
Lynchburg, Va.
freezer
of
'
"
The company has secured
strong
cooperation from its union with
7.25
,
why I have chosen
structure, is Engineering Inc. for
power.
a
1948
quire almost 250 carloads to transport it; and will consume 100 tons
Dan River Mills
Pacific Coast Securities
re-
alloy tubing; weighs
10,000,000 pounds; will re-
over
Commonwealth Natural Gas
steam
high, contains 125 miles
of steel
Gas Company
the
all
350,000 horse
or
American Furniture Company
York
American
6.93
to
Trading Markets
feet
'
,
9.35
of
2-7815
New
6.24
1950
business
in
resentatives in 31 foreign nations.
One example of the magnitude
120 BROADWAY, NEW YORK I
'
-3.15
1949
70-year-old
world, having eight
plants in the United States and
Canada, and subsidiaries and rep-
Exchange
Stock
cubic
7.25
1952
leadspe-
kind
Members
—
a
Steiner, Rouse & Co.
payments, up to July, 1954.
$4.50
19.53
<
four
record
Earnings
months)
generating equipment
for public utility, industrial and
marine power plants.
It is one
of the largest companies
of its
This
ffiPONNELL & Co.
Coos
Combustion
(Page 2)
space.
The
1951
cializes
Since 1917\
Tele. LY 62
field
&
Members
,
<
1954 (9
this
due
The book value
M.S.Benjamin
Engineering Inc. will be"
ing factor.
Rights & Scrip
stock.
common
En-
In
ergy.
simple:
debentures
is over $60.
power
especially
Specialist8 in
is
1979 and about 1.000,000 shares
development;
REctor
years the electric
this country' will
capitalization
of
TEL.
in
ing Co.
and
-Partner,- J.
Co., New
Duff
-
stock is $50 a share.
more
greatest
Bought—Sold—Quoted
Members
Engi-
than double.
This augurs
well forth e Combustion Engineer-
the
Hartford, Houston, Philadelphia,
York
eco-
history;
PHILADELPHIA
American
and
nomic progress through the installations
*
Robinson
York City.
ing
a
chemical recovery units
PU^P and PaPer industry—
their
Louisiana Securities
Inc.—
19 Rector St., New York
6, N. Y.
used extensively here and abroad,
*n
Engineering
S.
many
S^^PS
I
Alabama &
Selections
built for the combat
were
dynamic
expansion in its
Portland, Me., Providence. San Francisco
New
Also
requirements.
January 20, 1955
Motor Products Corporation—Col.
Wiiliam
Freiday,
of the Maritime Commission's to-
boilers
^HPSilS^H
try's economy
faces the most
Exchange
Wires
be
to
bustion -Engineering Inc. boilers
ancl component parts—about 50%
Fore^n countries have been aided
This
Member
Direct Private
stock
company
a
ing Inc.
Boston, Chicago, Cleveland, Dallas,
•
of
tion Engineer-
Teletype NY 1-40
BOSTON
I
Corn-
my money in
the Combus-
120 Broadway, New York 5
WOrth 4-2300
r
with
f°r
1920
Stock
1
launched
were
sides my time and energy I would
like to invest
Corporation
•
be
would like
New York Hanseatic
Associate
c.
Engineering Inc.
Maule Industries
Established
I
Member? New York Slock Exchange
Long-Bell Lumber of Mo.
Gas
month
Senior Partner, Benjamin, Hill & Co.
New York City
Lone Star Steel
Tennessee
BENJAMIN
S.
/
Week's
Benjamin, Senior
Partner, Benjamin, Hill & Co.,
New York City.
(Page 2)
nor
Thursdr,
...
Participants and
Maurice
intended
not
are
Chronicle
ernors.
Nov. 16-18
(New York, N. Y.)
Association
of
Stock
Exchange
Firms meeting of Board of Gov¬
ernors.
Nov.
27-Dec. 2, 1955
Florida)
14-Year Performance of
35 Industrial Stocks
FOLDER
ON
REQUEST
(Hollywood,
Investment Bankers Association
annual
Convention
at
Holly¬
wood Beach Hotel.
OVER-THE-COUNTER /
INDUSTRIAL STOCK INDEX
National Quotation Bureau
Incorporated
46 Front Street
New
Y«rk4,N-Y.
Number 5396
Volume 181
.
.
The Commercial and Financial Chronicle
.
(259)
-
3
INDEX
Problems and Prospects
Of the French
immm
B. S.
Articles and Netvs
"Business and
Page
AMD COMPANY
Finance Speaks After the Turn of the Year"
(Personal views of Government Officials and Leaders
By C. DOUGLAS DILLON*
*
in Trade,
Ambassador to France
U. S.
Ambassador Dillon, after
outlook
describing the political and economic
controls
over
Wheels
promising
investment
the
des-France" and
background in
banking field I
my
—Donald
is
full
sub¬
ject for all of
But
far
us,
s
p
ectacular
in the
votes
As¬
National
the
primarly
was
votes
on
the
o
France
run
Basically
Western
C. Douglas
the
France
will hold in the world and in the
Alliance.
Western
A strong econ-
France, a
may
mean
a
France
overrun by Communism.
Because
of the importance of this subject
means
omy
weak
and
strong
a
one
the fact that it has been someoverlooked
what
with
comparison
in
the
of
some
spectacu-
more
political events that have oc¬
curred
in the past year, I have
lar
^However,3 beLeTstart
on
my
to say a few
ratification
French Assembly.
main subject I want
on
the
in
words
the
debate
recent
factors
The
debate
difficult
and
this
into
entering
exceedingly
were
compiex
for
understand
to
those who do not follow the daily
ins
and
of
series
500
being
of
how-
Germany,
287 to 260.
was
a
about
The key vote on the
rearmament
ever,
in
with varying ma-
largest
100.
to
ratified
were
votes
the
jorities,
politics.
French
of
outs
treaties
The
The impor-
that
government
re-
exactly
been
has
ten
today's issue will be found
high and low prices, by
months, of every stock and bond issue in which dealings
occurred on the New York Stock Exchange during 1954.
N. Baxter Jackson Sees Greater Role
realize
overwhelming majority of
French
Assembly
and the
® ^ar l
solidly in favor
of the Atlantic Alliance. Approxi-
Strange
.
The
"mately two-thirds of the French
Assembly accept the fact that the
to
come
West
integrate
the defense of the
Germany into
There has been bitter con-
West.
troversy over the best method for
There were at least
contribution.
100
defense
German
this
obtaining
who
Deputies
had
strongly
supported the E. D. C. who either
abstained or
voted against the
ratification of the Paris accords.
not against a German
defense contribution as such, but
They
were
were
politically opposed to Men-
♦An address
fore
the
Bond
York City
on
by Ambassador Dillon beof New York in New
Club
Real
As We
Issue
-
are
numerous
in their thirties.
rnvtlVVPrl
See
It
(IV
T)nC1P
Stocks
Recommendations.
Ahead of the News—Carlisle Bargeron
Indications of Current Business Activity
Mutual Funds
Reporter
•
Nashville
Boston
•
•
>
Chicago
Schenectady
*
Glens
Worcester
Falls
Exchange PL, N. Y.
Direct Wires to
17
5
25
Report
Public
Securities.
Utility
*
26
Railroad Securities
121
Prospective Security Offerings
and
.
.
Testers, Inc.
Cinerama, Inc.
125
Salesman's Corner
.
Johnston
89
,
Securities Now in Registration
97
You—By Wallace SStreete
Cinerama, Productions
12
The Security I Like Best
2
1
The State of Trade and Industry___
Haile Mines
4
Washington and You
5
Keta
^Column
'11
Maule
Twice
1
Weekly
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land,
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c/o
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&
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Publishers
7,
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second-class
as
B.
Dana
matter
Febru¬
25, 1942, at the post office at New
York, N. Y., under the Act of March 8, 1879.
Y.
Subscription
9576
Subscriptions
Possessions,
in
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HERBERT D. SEIBERT, Editor & Publisher
WILLIAM
Oil
Smith.
1954 by William
CHRONICLE
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Reg. U.
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Gas &
not available this week.
FINANCIAL
plete
Albany
40
Philadelphia.. Chicago.. Los Angeles
Governments
on
Thursday, January 20, 1955
TELETYPE N. Y. 1-5
•
mackie, Inc.
127
Our Reporter's
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in more
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118
i
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25
BROAD
_!__
Notes
The Market
Retpiest
over-the-counter
250
&
18
Securities
on
Singer, Bean
27
From Washington
Our
maintain
than
8
NSTA
Prospectus
11
;
Einzig: "British Reaction to the Wall Street Setback"
,
We
16
i
Copyright
Members New
Mart, Inc.*
Cover
2
WILLIAM
25
*
1
(Editorial)
Coming Events in the Investment Field
Published
specialized in
Food
115
The COMMERCIAL and
have
55
,
_
Dealer-Broker Investment
LOUlinuea Oil JMye 01
For many years we
Consol. Diesel Elec.::
28
-
(Boxed)
Business Man's Bookshelf
«
There
Still
22
(Boxed)..
Bank and Insurance
®
w
ministers
Chesapeake Industries
...
Regular Features
French
Party, , an era- which has
iett its mark.
However, during t e
y
or two another and far more lmPortant outgrowth of the war as
become increasingly noticeable
this time a development whic
can bring "J13}01* benefits not only
*° Prance but also to all of western FlJrop.f;
?,r Y° 3
word I will call it the revolution
youth a peaceful revolution,
Prench youth is today clearly on
the march in business as well as
m government. The average age
°t the Mendes-France Cabinet is
Jan. 14, 1955.
,
Elco Corp.
Arguments
\
47.
for
City Bank
nppn
f.LFrar?'pnrY1
eoabtmn^ inc ud g
e
-
only
/
&
City
Hycon Mfg. Co. PrePd :
of Frenchmen for ot e
ei c men resulting from the strains of
tbe +?CC^?- ij0n'p^
?f the Vichy ^Government and
a
York
Lt,
^ OccU"
s
themselves as a nation,
^
Lake
«
,
We a11
^
f nf
th* unhappy-ejects of
Patl0,n a"d t}?e warf 011
?
Philadelphia
to
American Tidelands.
in
Europe and the end of dest uct o
in *ranf,e\
E?op
Teletype: NY 1-4643
wires
Salt
President Eisenhower's Budget Message..
u
Broadway, New York 4
DIgby 4-4970
usual tabular-record of the
our
+
turnin,g ]point of
*m
today's issue will be given
subsequent issues.—Editor.]
In the SECOND SECTION of
New
^rne^ back
J. F. REILLY & CO.
42
Direct
the
.? t
AFTER
years
an
to
us
French people are
1
in
since the last German offensive in
as
;
DIESEL ELEC.
SPEAKS
FINANCE
AND
could not be accommodated in
of the free world.
vote
has
CONSOLIDATED
■
on the cover page
OUTLOOK ISSUE,
.
It
•
•
-
of today's ANNUAL REVIEW
we
present the opinions of
leaders in Government, Industry and Finance regarding
the outlook for business in 1955.
[Commentaries which
of the liberation. We klk)w
Jr0r
hv
time
Green River Uranium
29
Starting
AND
from the vlo!ent reaction at the
the
on
Stanley Rukeyser
THE TURN OF THE YEAR
basically attached to the
71 Alliance of free peoples.
We should ^evei
'ia*
France s attachment to liberty and
freedom is every bit as deep as
our own- ^esp1^ possible di er
enJf.es, over m®thods an<-l ^ea™*
which are only natural amog
allies, France is and
main a strong and reliable mem-
is
for
•
BUSINESS
™aiI?s
ber
Corners Uranium
4
25
47
A
under
France
despite the closeness of this
thine
22
Monetary Policy—Jules I. Bogen
on
30
Attached to the
that
tant
Lisbon Uranium
19
Colleges, Schools and Taxes—Roger W. Babson
of
>
Alliance
conceivable
any
which
position
is
remember
Dillon
ism in France
and
Sabre Uranium
Attacking the Farm Price Squeeze—Hon. Ezra Taft Benson.
The important thing for you to
influence
Commun¬
f
13
Bill Market
14
Business Recovery—Merryle
will determine
the
Godsoe
Despite Forward Movement, There Are Curbs
a
part
Gerald
Industry in 1955—D. A. Packard..:
Another Reversal
political opponents of Mendes-France
that
provided
the
votes needed for ratification.
in
long
it
10
Staley
Picture—J.
The Appliance
the
to
'
1955
Direction—Samuel W. Anderson.
not prepared1
opposition
STREET, NEW YORK '
Telephone: WHitehall 4-6551
these
of
economy
23,
of
switch
French
the
were
men
their
Dec.
on
sembly!
The
strength
or
weakness
these
push
10
Eisenhower's Foreign Trade Policy: A Step in the Right
D.' C.
obsoletes!
Obsolete Securities Dept.
99 WALL
*
Marcus
—Edward
point of taking the responsibility
for endangering the Western Al¬
liance. After the unfavorable vote
the
than
so
to
more
9
__
The Federal Reserve and the Treasury
take
should
inferior to the E.
were
Means to Business
Heatherington
F.
Oil
Canada's
responsibility for ratification
Paris accords; which they
felt
portant
he
F.
—Thomas
:
had
the
of
im¬
most
a
that
determined
have taken a great in¬
terest in the French economy. This
3
6
A Summarized Investment Outlook for
helped defeat E. D. C. they were
naturally
k
Keels—Ira U. Cobleigh___
on
WHO ARE WE FOR?
The guy stuck with
r
I"
What Convertibility
he
because
!
Douglas Dillon
Facing the Future With Confidence—Harlow H. Curtice
Lists most
for future action in French economic field.
courses
of
Cover
Economy
,
curve
ONE, TWO, THREE, FOUR
_.:___Cover
u:
Retailing—Hon. James C. Worthy
—Ambassador C.
opportunities exist-for American capital in France.
Because
the economic
on
;j___
Problems and Prospects of the French
in .-France has flattened out and con¬
French currency restored. Points out government
new securities flotations have been ended, and
fidence in the
1955)
Next Ten Years in
problems of France resulting from the devastation of war, and
the progress made in solving these problems, takes an opti¬
mistic view of future prospects in this key European nation.
Says the inflation
Industry and Finance
for
1-4040 & 4041
Wire
to
COMPANY, INC.
LOS ANGELES
ARTHUR L. WRIGHT & CO., INC.
PHILADELPHIA
I
4
(260)
The Commercial and Financial
Chronicle
strong
The
The
Production
Electric
to
Output
Carloadings
Price
Industry
build
steel
wage
industry
as
many
is expected
cars
it
as
can
The
cars
would
hand.
But
dence
Failures
that
the
J
X.
its
bargaining
far there is
so
is
there
terrific
that
reservoir of
a
strengthen
Index
Production
Auto
Business
the
on
idea being that
Commodity Price Index
Food
and
auto
before wage talks are begun.
Trade
Retail
State of Trade
effect
talks.
\
Steel
evi¬
no
float in
schedules
any
production
keep
setting records week
after week—and tighten the sfeel
market
industrial
Total
the auto industry, will be
the
output for
negotiat¬
ing new wage contracts during the
first half of the year.
Both will
find the going tough.
country-at-large
last
week
ad¬
about 5% above the simi¬
vanced
lar
period in 1954.
Substantial
gains were registered in the pro¬
duction
of
There
tric power,
coal, elec¬
automobiles and crude
strike.
while losses were noted in
civil engineering construction and
output of lumber
and
agreements
unemployment insurance ben¬
efits in the week ended Jan. 1
at
the
year
ing
the
highest
and 28%
week
in
claims
ended
Dec. 25
were
a
if
even
wage
out
notice
a
contract
America
its
of
on
can
desire
reopen
to
serve
rates only.
wage
its
If
a
new agreement is not reached by
midnight of June 30, the union is
in
5%
free
the
prior week and 18%
higher than in the corresponding
strike.
to
But
domestic
production
the
to
vehicle
motor
88-week
an
peak
past week.
"Ward's
counted
177,539
completions
truck
United
plants
or
Scheduling
3.4%
before
the
steel
reached
in
Prompting
the
increase,
the
publication stated, was a
43%
gain by the Independents
who began their "comeback"
fight
weekly
with
the
topmost
January
weekly
a year ago.
total
"Ward's"
week of the
wage
essing,
dustry expire. If labor is serious
about winning the guaranteed an¬
overtime operations within
nual wage
ler
preceding year. Tem¬
porary layoffs for inventory tak¬
ing and curtailment in food proc¬
textiles,
mous
lumber
apparel,
and metal products contributed to
the
Auto
is
indicated
And
a
industrial
ber
at
production
1953
month.
Decem¬
all
1954,
ever, output averaged
against 134% in 1953.
Labor
most
may
have
United
lead
to
David McDonald, head
States
car
Chrys¬
Reuther
This
parallel.
Murray
his
President
an
the
of
the
interesting
late Philip
President of the CIO
was
own
steelworkers'
union
the annual wage
us¬
fight,
this trade paper.
comments
important factor in the steel
is
recalls
When
ually led
the
heading the UAW,
states "The Iron
Age,"
national
metalworking
weekly, this week. Both the steel
industry and its biggest customer,
will be able to
with
his
get
demand
annual wage.
first
to
for
base
guaranteed
But the bargaining
in Detroit is bound to have
a
very
and
factor,
20%
output
Chrysler
of
last
from
duction
United
week
and
to
General
Motors
no
1955
the
marked
model
de¬
pro¬
pattern.
order,
continue
lead
to
in
weekly United States car
output.
Within the Independents
week
Corp. volume
between
American
was
Hudson
Motors
divided evenly
and
Studebaker-Packard
Nash, but
Corp. dom¬
inated the group's operations.
Production trends
point to
far in Jan¬
so
STATE AND MUNICIPAL BONDS
CORPORATE BONDS
monthly volume
6'41,973-unit December level
and a favorable new car inven¬
tory situation on Jan. 31 even if
sales fall off from the record
cember
new
cember
high
edged
retailed
Dec. 31
der
RHODES-HAVERTY BLDG.
ATLANTA
WALNUT 0316
LONG
1, GEORGIA
De¬
rate.
Domestic
LOCAL STOCKS
to
rose
1953
1,215,000,
E. E. Henkle Adds
(Special
ish.
ber
begun in Decem¬
dwelling units—a
on
91,000
high for the month.
steadily rising momentum
new
mid-summer
the
on
Secretary
The
from
attributed by
was
to
the
With Merrill Lynch Firm
(Special to The Financial Chronicle)
hous¬
new
ing law.
Steel
CINCINNATI,
Dixie
car
sales
2%
over
in
June,
in
at
Some mills
now
rolled. Other mills
books
filling
STRONG, COBB
their first-
see
G. C. HAAS & CO.
so
all space is gone, it states.
A
substantial amount
strength
of
this
of
May.
strike
demand,
capacity,
the steel
Jan.
16
industry
to
preceding week.
mills operated at
smaller
either
82%
filled.
industry
ment
a
new-auto
bonus
re¬
needs
auto
be¬
or
will
Stock
•
some
properties
government> }
pressure
dustry.
decline
A
duction in
on
the
in
steel
TEDEN &
steel
143
beginning
of
the
year
,
write
,
at
1%'-.
'
phone
or
COMPANY, Inc.
193J
,
Broadway, New York 6, N. Y.
pro¬
Dlgby 9-1348
the middle of the year
would not be unexpected.
'
underprised
market about
For details
in¬
-,i\
tV\•
operations
appears
current
is
ordering would relieve
the
develop¬
payments
for mining
be
industry
for
mine'
on
shortly
from
Established
of
;
Company adequately financed,
slackening—
strike
news
expected
Production
•
be
Utah)
Producing Company :
Important
a
the largest user of steel, a decline
in its
•
certified
auto
the
<of
A
•
may
As
NATIONAL URANIUM
over
A year ago
only 74.5% of
because of
all
Street, New York 5, N. Y.
BOwling Green 9-7060
Teletype NY 1-2746
of
capacity.
midyear,
quirements
Exchange
Exchange (Assoc.)
the
at
rise of 1.5 points
a
'
Stock
Stock
To meet strength¬
boosted its ingot production in the
ended
York
63 Wall
industry which is putting on
big production push to beat a
possible automotive
\
Members
New
American
from the automo¬
comes
Trading Markets in
light, flat-
rapidly they
telling customers they should
get orders in right away before
cause
Mil¬
Slayton
RES1ST0FLEX
are
By
.
week.
are
particularly the
week
H.
connected with
Active
booked fully for
the first six months on some prod¬
ened
,
,,
Co., Inc.
"Steel," the weekly magazine of
end
Building.
82.4% of Capacity
metalworking, the current
a
F.
Output Scheduled This
At the
some
an¬
1954
alysts said they expected the 1955
holding
steel production trend line to look
the
inventories fully 30%
the year-ago
De¬
Terminal
MONROE, La.—Elbert
ler is
A strong first half is
shaping up
for 1955 in the steel
market, says
half
Leo
—
With Slayton & Co. Inc.
&
Week
ucts,
Ohio
Oppenheimer is with Merrill
Lynch, Pierce, Fenner & Beane,
liberalized
provisions of the
Chkonicle)
.
and
was
Financial
10%
up
record
Work
Thjs
— Raymond
A.
Monnett is with E. E. Henkle In¬
vestment Company, Federal Se¬
curities Building.
second
only to
1,396,000.
After a
start, home building activi¬
ties wound up 1954 with a flour¬
1950's
to
LINCOLN, Neb.
slow
a
at the
1894fc
year
1955
past
unauthorized
an
stoppage.
from
statistical agency said that
Chevrolet, Ford and Plymouth, in
that
to
According to Secretary of La¬
bor Mitchell,
housing starts last
the
The
uary
ESTABLISHED
49%
indicating
viation
the
It is doubtful that Mr. Reuther
market this year,
Co.
due
Thursday, January 20, 1955
..
bile
Corp.,
CIO.
how¬
125%,
turn out to be
his
and
will
Corp.
Despite
this
Corp.
nudged
the Independents 4.2%. An addi¬
tional 27% went to Ford Motor
Mr.
i24% in the like
For
Reuther
Workers
In addition to
of the 1947-49 level,
compared with
it looks as if
year,
commented, however, that supply
problems created by the indus¬
try's record output is restricting
ring in the GAW issue.
It placed
in
fa¬
union, apparently has
no
thought of torturing the lan¬
guage of his present contract to
this month by rising
128%
the
of the steel
further gain
steel and auto output.
this
the fight.
rently reports that industrial pro¬
duction in December topped the
year-earlier level for the first
deadline
5-year pacts in the auto in¬
Walter
increases.
The Federal Reserve Board cur¬
time in 1954.
contract
last,
work
last
the high¬
was
182,594 was
April of 1953.
late
day
States
than
more
since
late
Reports"
and
car
for
week.
est
on
the extra day the past week.
Elsewhere, Mercury closed down
its Metuchen, N. J.,
factory Thurs¬
loan
Automotive
since 6,799 units were recorded in
month
a
trade
pushed
disrupting
new
worked
be
can
of
workers
was
almost
above the preced¬
Continued
week.
above
level
But
peacefully in both industries, the
bargaining
will
add
a
coming
strong push to the steel market.
On
May 1 the United Steel-
paper.
The latest reports indicated that
the number of initial claims filed
for
believe
to
reason
no
hurdle without
wage
oil,
the
is
that both will be able to clear the
bituminous
proportionately, declares
authority.
Independent car makers, operat¬
ing at their best level in a year,
this
.
un¬
level.
Heavy Saturday work persists
in the industry, Ford
again sched¬
uling all of its 16 assembly plants
like the profile of
a
saucer.
ST. LOUIS
They
thought output would dip during
the
summer
and rise at the end of
Continued
on
page
105
DISTANCE 421
Peltasonjenenbaum Co.
LANDRETH BUILDING
THEODORE GARY & CO.
Eastern
SEATRA8N
Industries, Inc.
Direct Private Wire to
Cleveland, Ohio
Financial Opinion
CAPITAL STOCK
specially
HARDY & HARDY
constructed
ships, called SEATRAINS,
each of which carry 100 loaded
freight cars, are routed
from Edgewater, N. J. to
Savannah, Ga.—New Orleans,
La. and Texas City,
Texas; the latter servicing the
rapidly growing Gulf Coast trade.
ESTABLISHED
sound
11 BROADWAY
•
per
sheet
and
NEW YORK 4, N. Y.
—
a
Teletype NY 1-960
share.
large
balance
growth
NOW AVAILABLE.
•
•
AND
A
Report
on
Request
company
by
Relations
Expertly planned
The NEWLING CANADIAN LETTER
SOLD
growing
consistent program of
F inancial Public
possibilities.
BOUGHT
Skillfully applied
fortnightly review of the Canadian Securities Markets
FREE COPY UPON REQUEST
Consult
without
us
obligation
MUrray Hill 2-4545
J..W- Gould &) Co.
1ZO
Broadway, New York
5
NEWLING & CO.
Members of the Toronto Stock
Phone Dlgby 9-3220
Teletype NY 1-2312
a
i
a
Telephone WHitehall 3-4490
aggressive management — excellent
dividend payer — with
Leaders |
Can best be attracted to
1932
SEATRAIN in July 1954 purchased
265,920 shares of
their own capital stock at $14
Able
Central 1-9626
Litton Industries, Inc.
LINES, INC.
(an adjunct to the railroad industry)
Six
ST. LOUIS 2, M0.
Teletype—SL 486
21 West 44th
Exchange
Street, New York 36, N. Y.
Direct Private
Wirea
to
Canada
GARTLEY
&
ASSOCIATES/
6
8
W 11 i
i a m
S t:
e c
t
•
INC.
Nfw
Ick
b
N
1.
1
Number 5396
Volume 181
.
.
The Commercial and Financial Chronicle
.
(261)
5
tential disappearance of the capital
gains
tax
uidation
Observations...
.
this column
issue,
observations pn
dividend
viewed
historically and in their
relation to the probable level of
long-term interest rates.
(10) The restrictive influence of
the tax on capital gains, which
freezes
the currently
enormous
unrealized appreciation.
sub¬
the stock
market pros¬
pects
the
in
form of factu¬
ally citing the
most
impor¬
tant
bullish
and
bearish
living elsewhere.
which
logically
influ¬
should
stock
ence
prices in 1955.
*
*
*
BULLISH
FACTORS
Wilfred
(1) The
May
politi¬
manent
cally-motivated
major
guarantee agamst
depression
both active and
furnished
stand-by
by
govern¬
ment
interventionism; currently
highlighted by the currently-pro¬
posed
$101
billion
highway
con¬
struction program.
(2)
The high
behind increases in
volume; pre-tax
profit margins
falling 25% from 1950-54. Over¬
all corporate profits in 1954 de¬
clined from 1953; and per share
earnings of the stocks in the Dow-
profits
way
Jones
per¬
level of business
Industrial
less
some
Average
chemical, despite huge capital
tion
not increased
has
at all.
Likely interruption of the
quiet on the labor front; as via
violent ,« agitation,
including the
rates,
increase
1955,
in
housing
best
second
enjoying
in
its
in history with
iy4 million units,
year
approximately
and
construction
new
with
further
construction expected to
new
establish
J
(2)
expansionist period.
a
ex¬
penditures for expansion, income
even
before taxes and deprecia¬
teed
in
Prospective
apparently
serve's
*
harder
money
already fore¬
the Federal
Re¬
market
sales
of
by
open
Treasury
bills,
and
hiking
of
margin
requirements.
In
any
credit
discriminatory
event,
striction
the
vs.
the relative
While
a
he
immodestly ventures to commend
their usefulness in providing for
January, 1956 a supply of ex¬
planations from which then can
be selected those to fit the mar¬
kets
>
of
has
added
Pollacchi
Palmer,
the
to
be
enced
Banking
the
Senator Fulbright was
reflects
he
*
ST.
St.
LOUIS, Mo.
Denis
with
has
H. J. Lange &
example,
Congress to the Re¬
Mr. Fulbright,
al¬
Democrat and fairly
demic-motivated self-sacrifice
a
established
in
as
a
"liberal,"
spirit of
a
no
political
a Republican to a Cabinet
in the line of succession,
and step down to make the way
for a Republican President.
This, of course, reflected the
He
British traditional way of oust¬
post
of
Mr.
due to the fact that it
was
the
advocated
this
was
replacement
ing
board
by a single Ad¬
ministrator, a superior form of
rule, in this opinion.
\
84
under
,
one-man
a
Thereafter the
connected
ducted
tore
Co., Inc., 314
his
away
c
h i
e
f t
Senator
public
enough
Senator
readers
con¬
the
Fulbright personally
investigations. * As the
dislikes
of
veil
the
"Chronicle"
already
perhaps
and
of
a
Dislikes Investigations
a n.
inquiry
of
chosen parliament.
advice about reconstituting: RFC
.
on the basis
popularly-
government
a
election
of
rejected the Arkansas Senator's
aware,
Arkansas Senator hastens to
Continued
shielding: RFC's operations from
North Broadway.
in
to,
say,
the
on
page
permanence
debt
sured
the
circumstances to be construed
as an
offering oj these securities for sale,
area.
savings, whose
no
mortgage
(4) The large pool of consumer
purchasing power and individual
This is under
friends—
record
through
at
$39 V2
billion
is
perpetual
as¬
rise
in wages and the power of labor.
(5)
Budgetary
stered by the
inflation,
bol¬
ever-continuing Cold
War.
contrast
(4)
high
The
up
—
40%
level of private
since 1950 and
or
an
offer to buy,
January 20, 1955
ISSUE
250% since 1945.
(5)
Unlikelihood of tax relief;
Northeastern Steel
with the actual reversal thereof in
New York State.
the great postwar expansion of the
Counter-acting the infla¬
tionary influences, the normally
controlling
impact
of
chronic
over-production in most sectors of
country's
American
nation's
population,
abetting
economy.
(7) The market's investment sta¬
tus, in contrast to the speculative
credit and manipulation attending
former
ings
Corporation
(6)
(6) The remarkable increases in
the
solicitation oj an offer to buy. any oj such securities.
offer is mode only by means oj the Prospect us.
or as a
The
NEW
major bull markets.
practically
are
with
99%
of
all
on a
Deal¬
cash basis
securities
being
(7) Stock prices' present gener¬
multiple of earnings, which
earnings are vulnerable in being
derived from a high level of eco¬
nomic activity — a situation the
ous
converse
American
equity share from
yields,
abroad
well
spectively since
stant
addenda
here, with
of
con¬
regularly-pro¬
(The presently large
propor¬
Common Stock Purchase Warrants for 276,000
many
92,000 UNITS
Re¬
down
Blue
and
32%
a
Chips
the
enhancement
in
21%
and
year
ago,
Each Unit
re¬
mon
with
the
relative
a $50 registered Debenture, 10 Shares of Com¬
eight-year Warrant to Purchase 3 Shares of Common
Consisting-of
Stock and
Stock at
in the strato¬
corresponding
an
$8.o3*43 Per Share Payable
this column of Dec. 23.)
moneyed
from
tax-exempt
to
Debentures at Par.
The
po¬
Copies of the Prospectus may be obtained only from such ot the underwriters,
including the undersigned, as are registered dealers in securities in I tin Stale.
Estabrook & Co.
We take
F. S. Moseley & Co.
White, Weld & Co.
pleasure in announcing
Lee
the formation of
Members New York Slock
14 Wall Street
incorporated
Townsend, Dabney & Tyson
Exchange
DIgby 9-3205
Putnam & Co.
Coffin & Eurr
Iligginson Corporation
Auchincioss, Parker & Redpath
Cooley & Company
Theodore Tsolainos & Co.
>
or
the
bonds
investor.
Cash
Price: $100 Per Unit
tractiviness of the take-home pay
of
111
at-
stockholdings occupied
by institutions was detailed in
tion
Shares of Common
being offered in
duced price-earnings and dividend
sphere;
grammed buyers.
A, Due February 1, 1975
Shares Common Stock (Par Value $i Per Share)
920,000
(8) General vulnerability of to¬
day's advanced market level.
as
Series
of 1949.
purchased outright.
(8) The secularly rising respect¬
ability of and demand for the
as
$4,600,000 6% Subordinated Debentures,
industry.
R. L. Day & Co.
Chas. W. Scranton & Co.
Chace, Whiteside, West & Winsiow
Incorporated
Blunt Ellis & Simmons
Robert W. Eaird & Co.,
incorporated
THEODORE P. TSOLAINOS
(Member New York Stock Exchange)
TOMASZ
J. MAJEWSKI
Ilincks Bros. & Co., Inc.
Edward M. Bradley & Co., Ince
Cateman, Eichler & Co.
Eddy 3rothers & Co.
Schmidt, Poole, Roberts & Parke
Ilallowell, Sulzberger & Co.
Childs, Jeffries & Thorndike
Incorporated
Offices at Delafield & Delafield
January 17, 1955
Burgess & Leith
ap¬
point
Finance
Reconstruction
re¬
which< has
a
aca-
that Mr. Truman
? proposed
operated by a bi-partisan board.
Charles W.
—
become
80th
nonetheless
Fulbright believed
that the RFC's mismanagement
Lange
Financial Chronicle)
British
an unique sug¬
When Mr. Truman lost
publicans,
an
President Truman impatiently
to The
government, influ¬
the
led him to make
gestion.
student,
In
well
Corp.
State Street.
Joins H. J.
by
scholar.
though
the
staff
Co.,
&
law
Rhodes
the forms of
alleged iniquities on the part of
the old Truman management of
to The Financial Chronicle)
been
to
connection, his interest in
a
Thus, he led the
inquiry which revealed so many
BOSTON, Mass.—Gladys S." Al¬
beit
the
Fulbright in his youth
was
this
interest in the forms of govern-
preceding 1955 behavior.
(Special
Senator
mentalism.
Palmer, Pollacchi Adds
,
of
capitulated. He reorganized
so as to place it under
single Administrator.
also
Committee.
general
in
selected
Staff. Director
of the
the RFC
a
Williams, .just
and the invest¬
community
market
stock
man
Fulbright (D., Ark.)
of the Senate Banking Commit¬
tee, and the second is Robert
possess
of the above-cited ele¬
affecting 1955 stock
To commentators
ment
(Special
(3)
not
to convince the
as
of the wisdow
Senator's original idea. Mr. Tru¬
J. William
does
observer
wage.
shadowed
President
science.
prices; or, in fact, to know whether
they will have any effect at all.
a guaran¬
—against $37 billion in 1954.
♦
market.
the wisdom to weigh
year
possibility of strikes, for
>
were
public view,
rities markets will be the prime
job of two men who are steeped
in the scholarly lore of
political
The first of these is Chairman
This
than in 1950. In
industries,
notably
the
last
activity, manifested in the nearrecord indices, with the
economy's
appearance of being in a New Era
(3) The expectation of
fidence in the stock
ments
(1) Un-profitability of business.
Increasing competition combined
with higher labor costs have kept
WASHINGTON, D. C. — That
forthcoming study of the secu¬
(10) The forthcoming Fulbright
"study"; carrying at least psycho¬
logical effects of "authoritative"
undermining of the public's con¬
potency
BEARISH FACTORS
-
factors
A.
current advantageous
and earnings yields, as
The
(9)
custom begun in
Annual Review and
our
year's
it
And You
(run the Nation'
rich-quick" atmosphere — in con¬
trast to the toughness of making
a
'
mits
BeVmd-the-Scene
(9) Wall Street's present "get-
(For Use January 1, 1956)
Outlook
Washington...
.
Following
last
deterrent to liq¬
major decline has
mutual funds.
THAT STOCK MARKET "OUTLOOK"
>
a
pension funds, fiduciaries, and
to
By A. WILFRED MAY
i
a
as
once
under Way;
coupled
with
the non-importance of that tax
factor as a profit-taking deterrent
got
F. L. Putnam &
Company, Inc.
Richard W. Clarke Corporation
Smith & Company
are
t he
ex-
128
\
6
(262)
1
The Commercial and Financial Chronicle
i
■
ward
Wheels
Keels
on
units
which
A
slight review of
look at certain
panies engaged in expanding this traffic.
carrying rolling stock; and an up-to-date
f.riancial and
their
scnt
industrial elite pre-
previews of
1955, this col¬
informed
will
umn
content
d
Railroad
set
to
o w n
Seatrains,
be
little
a
few
a
car
in
York
there's a big Great Lakes service
of the Pere Marquette R.R.; and
an extensive coastwise car ferry
service
operated
by
Seatrain
tant
industry
of
port
truck
The
trailers.
putting
that
proved
Lines,
Inc.,
wheels
economics, but
ing.
dividend
We
Ira
U.
tuat
cut
their
inland
across
people,
They
aquatic
an
of
them,
rippi,
scores
Ohio,
or
capacity.
the Missis-
on
Missouri,
regular
spanning
bays. One by
City.
however, either
one,
or
bridges
sea
1 his advertisement is neither
an
o
ffer to sell
nor
New
New
and
has, from
run
strongly
in
time
to
this
time,
of
vessel,
loaded
trailer
place¬
ocean
chinery
TMT
substantial
goods
truck
cabs
costs
pay
for
that
pull
driver
low
snow,
have
and
visibility;
created
some
delivering
driving
the highway. Hence, a
trailers
over
word
in
to
be
savings
crated
not
be
stored
dock
with
without
our
transportation
and
York
Syosset, Long Island to, I believe,
Long Island City.. More recently
New
rental
The
York.
has
run
of space
on
into
capital
for
common
400
a
gains
shares
of
quite decent
through
the
conversion
generous
dent, appears to include
quately
versed
matters.
op¬
ships
by
and,
has
men
ade¬
transportation
business
trailer-
of
been
widely discussed
-we've* noted here; there
as
are-some
but the Florida-Porto Rica service
in
'•
whole
This
New
Liberty ship,
a
are
bond
tion. Management of the company
headed by Mr. Eric Rath, Presi¬
al¬
handled
been
of
to be offered
at
cut
rather
Porto Rico and Florida, and Porto
Rico
shares
5V2s
$1,000
a
Assuming the success of
enterprise, the
bondholder
this
ready established service between
large scale lines in pros¬
pect which
is
shortly to
expected
by
a
on,
be
seem to be more logi¬
with present highway con¬
gestion, and each new raise in the
served
cal,
converted LST hull, for roll
In
fact,
financing
the
above,
is
among
other
purchase
referred
designed
of
Coast-wise,
funds
LST,
for
Lakes,
and
trailer
perhaps
the
idea
can
America?
They'd
duck
strikes!
This
ture
Inc.
a
for
to
Trailer
become
the
nique of transportation.
by
TMT
indicated
is
nificant contribution
substantial fu¬
ar¬
rangements with Allied Van Lines,
another
of
lot
program
of wheels has already made a
growth
Ferry,
catch
for off shore, why not
as
stevedore
The prospect for
the
on
ships to Europe and South
terminal
tive circular.
labor.
transport
and
equipment set forth in the descrip¬
and
certain
on;
60
plus
motor
of
Great
provide,
to
things,
this
price
to
roll off, trailer operations.
trailers
This idea is lots older than peo¬
ple think. Actually it started back
in 1879 and, of all
places, on the
Long Island Railroad! They ran
some loaded farm
produce wagons
have
100
seems
or
assured.
companies
Ferry, Inc.
units,
convertible
damaged. Further, safe door to
door transport without rehandling
Subsidiary
in
common.
or
seems
refrigerated
no
of
$1,010; and the debenture itself is
speed,
because
on
Trailer
offered
merchandise need not
and
uncrated, and
and
handling
side hoisting or expensive crating.
For
the
investment
minded,
point."
seem
in
transfer)
heavy ma¬
without hazardous over¬
the
and
the subsequent
(4)
move¬
interesting
traffic
through shipment
foods
(requiring
ocean
would
with
frozen
on
The rather apparent
problems.
on a
ramp up onto flat cars, and
carried them over the rails from
but
sig¬
tech¬
It could
important
"growth" industry.
is you
know, the idea was furthei
developed
by
the
New
Haven
solicitation of offer s to buy any of these securities
Railroad, which
40,000
ISSUE
certain
vocabulary—"piggy-back."
The offering is made only by the Prospectus.
NEW
freight cars, have
as
created
these
them
York-Texas
evidence,
trailers,
fatigue, increased driving risk
dapger of thefts or hijacking
new
Seatrain has marched steadily for-
a
ment
(3)
of
pier where they might be pilfered
carrying 30 tons and
big
as
the
these
York-New
to
re¬
pressure for methods of
New
runs,
Railroad opposition
been
built across,
were
round-trip
Orleans,
lakes and
our
because the roads around got bet-
ted,
spe-
These craft ply in three
York-Savannah,
Connecticut and Columbia
Rivers;
and many
of 'em
half
ant
,
Delaware,
are
for
year
burgeoning
helper; log,
over
six
each
these
turn
and
owns
numbers
and
slippery roads cause road
hazards and rising insurance
rates;
while night driving, with attend¬
sometimes .cially designed ships, each with
miles.
There four decks, and a 100
freight car
20
But
a
and
road
trailers
need
—all
Lines
a
Tr-us
them, they cover a lot of road;
long hauls create extra time and
the counter.
Seatrain
movement
be
With
the
on
The issue sells at 122/2
ing.
propelling
the road.
their
now,
produced
in
shares outstand¬
common
Other
include
vices
some
company
being 50c
rate
Rico.
would
shipside,
for
goods between
points in the U. S.~and Porto
volves "(1) the pick up of freight,
in trailers at origin - points,
(2)
to
carrier
motor
goods)
ment of household
advantages
of this comprehensive trailer ser¬
J
paid cash dividends since 1941,
1,329,146
bee-line, '
Hudson River ferries,
SO of
has
the present
ferry
lines
steady swaths
dozens,
hundreds,
were
re-
waterways carrying
and later, trucks,
cars,
made
saving
all
Cobleigh
be
oyer
(largest U. S.
household
points in the Caribbean area, in¬
cluding Porto Rico." Its service in¬
destination
time
same
standing by
was
placements alone.
off at the
The
truck driver
a
of
Thursday, January 20, 1955
.
all
be
keels is not only sound theoretical
window.
pay
inc.
in
movement, (5) off loading of the
trai'er, (6) movement of trailer to
right
on
background is
pay
to
freight trailer was born; and
caught on big. There are over
600,000 such trailers in tie U. S.
has
auite interest-
can
to
or
■almost
Seatrain
This
tons
freight
the
Lines, Inc.
—water trans-
2
points
growing rapidly, and 40,000 must
operate
may
quite impor-
from
Trucks
of
the
Harbor;
about
a
,big
some
place.
grown
loaded truck
Dozens still
notes
be
were
movement
highway trailers between
in the United States and
waiting to load, when he could at
ferries have seemed
New
had
through
it
what
turn out to
there
when his vehicle
Inc.
durable.
more
$iz
over
loaded
taking
not to have
dling; and many an historic double-ender wound up on the Amazon or the Orinoco.
tion, the security savants, and the
grosses
more
still
weren't
big
enough, and, further, the idea de¬
veloped that it would be handy
com¬
most of these ferries stopped pad-
edi-
elsewhere in this
Whereas
15
in the water transport of freight
progress
now
year.
—
changes
Enterprise Economist
„
a
But, to revert to highway freight
By IRA U. COBLEIGII
*
ana
million
.
.
New
January 19, 1955
York
a
Boston;
and
offer
now
over
This advertisement is neither ah offer to sell
a
nor a
solicitation of offers lobuy any-of these securities.
The offering is made only by the Prospectus.
between
year
and
dozen rail lines
carries
now
trailers
NEW
ISSUE
January 19,1951
piggy¬
back
service, using in some cases.
new
type specially designed
;he
400,000 Shares
flat
that
cars
can
twe
carry
100,000 Shares
trailers apiece.
The Toledo Edison Company
Trailerships, Inc.
The Toledo Edison Company
Waterway trailer transport also
has advanced.
Common Stock
years
For the number of
Trailerships, Inc. has
carried
4.25% Cumulative Preferred Stock
truck trailers in
a regular service
the Hudson River between New
York and
(Par Value $5 Per Share)
on
(Par Value $100 Per Share)
Albany, N. Y.; there's i
similar service across
Long Islanc
Sound
between
Orient
Point
Price $14.25 per
N. Y., and
share
have
Saybrook, Conn.; and i
the
seen
blueprints
ing
Copies of the Prospectus
several underwriters
writers
in
The First Boston
Myth & Co., Inc.
A. C.
are
which
may
any
only in States in which such
qualified to act
the
be obtained from
Prospectus
as
legally
be
under¬
million
convertible
to
truck
tank carriers for the
military.
Quite
Smith, Barney & Co.
recently,
Loveland
McDonald &
Wm. C.
Hornblower & Weeks
Company
"
Dean Witter & Co.
Fulton, Reid & Co.
W. E. Hutton & Co.
Ball, Burge & Kraus
ttosworth, Sullivan & Company, Inc.
Laurence M. Marks & Co.
Hayden, Miller & Co.
Farwell, Chapman & Co.
tween
line
New
from time
line,
I
Manley, Bennett & Co.
Stix & Co.
Westheimer and
Fordon, Aldinger & Co.
Lester, Ryons & Co.
Charles A. Parcells & Co.
Company
H. L. Emerson & Co.
Incorporated
Joseph, Mellen & Miller, Inc.
McJunkin, Patton & Co.
.
Sweney, Cartwright & Co.
has
Field, Richards & Co.
Smith, Hague, Noble & Co.
qualified to act
are
be obtained from
as
any
of the
dealers in securities and
been
from
The First Boston
discussed
the
which
the
Prospectus
a
West
Blyth & Co., Inc.
A. C.
in
and
operation
may
that
well
fits
Ferry, Inc.
This company was
a
merger of three
panies.
incorporated
existing
com¬
The best description of its
given here about it) is taken from
circular dated
fering its
bentures
company
5Vz%
due
Dec.
makes
23, 1954 of¬
Convertible
Dec.
15,
distributed.
Allyn and Company
Hornblower & Weeks
A. G. Becker & Co.
Smith, Barney & Co.
Central Republic
Incorporated
W. E. Hutton & Co.
Paine, Webber, Jackson & Curtis
Ball, Burge & Kraus
Collin, Norton & Co.
Merrill Lynch, Pierce, Fenner & Beane
-
Company
(Incorporated)
McDonald &
Company
Spencer, Trask & Co.
Fahey, Clark & Co.
Merrill, Turben & Co.
,
The Ohio Company
Dean Witter & Co.
Fulton, Reid & Co.
De¬
1960.
The
available
"the
Stern Brothers & Co.
Bosworth, Sullivan & Company, Inc.
?
i
Hayden, Miller & Co.
Baxter, Williams & Co.
J. C. Bradford & Co.
First of
Michigan Corporation
-
Watling, Lerchen & Co.
Curtiss, House & Co.
H. L. Fmerson & Co.
Incorporated
Field, Richards & Co.
activities (and all the information
a
be
in
nicely with today's discussion. It's
called TMT Trailer
legally
Corporation
Incorporated
promise,
may
a
TMT Trailer Ferry, Inc.
Baker, Simonds & Co.
Bell & Beckwith
in
and
time, and there is
believe,
teresting
Seasongood & Mayer
Campbell, McCarty & Company, Inc.
to
York:
Boston
Coast to Alaska.
as
urtiss, House & Co.
N^w
result in public
security flotation,
there's a sea going
company al¬
McDonald-Moore & Co.
Prescott, Shepard & Co., Inc.
and
between
York
J. C. Bradford & Co.
Company
may
several underwriters only in States in which such under¬
writers
of
Norfolk, Va..
plan for building and
trailerships- to ply be¬
Norfolk
water
ready
The Illinois
Copies of the Prospectus
McLean-
While these projects all hold in¬
The First Cleveland Corporation
Greene & Ladd
the
or
"
First of Michigan Corporation
Baxter, Williams & Co.
share
a
Watling, Lerchen & Co.
Fahey, Clark & Co.
Price $ 100 per
plus accrued dividends from December 1, 1954
Line
presented
operating
Langley & Co.
Merrill, Turben & Co.
Stern Brothers & Co.
.
W. C.
Paine, Webber, Jackson & Curtis
S. R. Livingstone, Crouse & Co.
Nauman, McFawn & Co.
Company
(Incorporated)
The Ohio Company
Roney & Co.
Goodbody & Co.
Central Republic
Incorporated
Hemphill, Noyes & Co.
cost¬
each,
These proposed ships were
laid out to carry several hundred
trailers each trip, and were to be
Collin, Norton & Co.
A. G. Becker & Co.
,
dollars
cisco.
distributed.
Merrill Lynch, Pierce, Fenner & Beane
Allyn and Company
ambitious
swiftly
Corporation
Incorporated
(
several
quite
trailer-ferries
originally 'to run be¬
tween Los Angeles and San Fran¬
dealers in securities and
may
of
designed
of the
,
Joseph, Mellen & Miller, Inc.
Seasongood & Mayer
The First Cleveland Corporation
McDonald-Moore & Co.
Greene & Ladd
Prescott, Shepard & Co., Inc.
Westheimer and Company
Volume 181
Number 53S6
.
.
The Commercial and Financial Chronicle
.
(263)
New Issue
7
1
)
"
v
*
•
*
i
*
•
1
„
■
$65,200,000
;
City of New York
2V2% Serial Bonds
Principal and semi-annual interest (January 15 and July 15) payable in New
Dated January 15, 1955. Due January 15, 1956-80, inclusive.
York City at
the Office of the City Comptroller. Coupon Bonds in denomination of $1,000, convertible into fully registered
Bonds in denomination of $1,000 or multiples thereof, but not interchangeable.
I
Interest
Exempt from Federal and New York State Income Taxes under Existing Statutes and Decisions
Legal Investment for Savings Banks and Life Insurance Companies in the State of New York and for
Executors, Administrators, Guardians and others holding Trust Funds for Investment
under the Laws of the State of New York
AMOUNTS, MATURITIES, AND YIELDS OR PRICE
>
Amounts
Due
to
Due
Amounts
Yield
Prices
Yields
1
Prices
•
or
$5,690,000
1956
1.00%
$3,590,000
1962
5,690,000
1957
1.25
3,590,000
1963
1958
1.40
3,590,000
1964
3,390,000
1966
1960
1.80
3,390,000
1967
3,590,000
2.00
3,390,000
1968
100
2.60
400,000
1971
2.65
2.45
1961
2.55%
1970
2.40
5,690,000
1969
2.35
5,690,000
3,590,000
1965
1.60
Yield
1,240,000
2.30
1959
to
$3,390,000
2.20
5,690,000
Due
Amounts
Price
2.10%
400,000
1972-73
2.70
ea. yr.
1974-76
2.75
400,000
(price)
ea. yr.
400,000
ea. yr.
1977-80
2.80
(Accrued interest to be added)
The above Bonds
are
offered, subject to prior sale before or after appearance of this advertisement,
if issued and received by us,
City. Interim Bonds of the denomination of $1,000 will be delivered pending the
The National City
for delivery when,
as
and
and subject to the approval of legality by Messrs. Wood, King & Dawson, Attorneys, New York
Guaranty Trust Company of New York
Bankers Trust Company
First National Bank
Bank of New York
preparation of definitive Coupon Bonds.
New York
Halsey, Stuart & Co. Inc.
Harriman Ripley & Co.
The First Boston Corporation
Smith, Barney & Co.
C. J. Devine & Co.
Incorporated
and Trust
Phelps, Fenn & Co.
Kidder, Peabody & Co.
Continental Illinois National Bank
Salomon Bros. & Hutzler
Shields & Company
Mercantile Trust Company
Ladenburg, Thalmann & Co.
The First National Bank of Portland
St. Louis
Oregon
Stone & Webster Securities Corporation
Estabrook & Co.
Dominick & Dominick
IraHaupt&Co.
Kean, Taylor & Co.
Geo. B. Gibbons & Company
'
W. H. Morton & Co.
Incorporated
Hayden, Stone & Co.
Shearson, Hammill & Co.
Laidlaw & Co.
W. E. Hutton & Co.
Coffin & Burr
Incorporated
R. L. Day & Co.
Lee Higginson Corporation
Dick & Merle-Smith
Co.
of Buffalo
G. H. Walker & Co.
Bacon, Whipple & Co.
Fairman, Harris & Company
Incorporated
January 20, 1955.
R. H. Moulton & Company
Andrews & Wells, Inc.
The Ohio Company
G. C. Haas & Co.
Eldredge & Co.
Incorporated
Manufacturers and Traders Trust Company
Incorporated
Robert Winthrop &
L. F. Rothschild & Co.
Incorporated
F. S. Smithers & Co.
Aubrey G. Lanston & Co.
First of Michigan Corporation
Roosevelt & Cross
Incorporated
Clark, Dodge & Co.
White, Weld & Co.
Company of Chicago
Rand & Co.
Hannahs, Ballin & Lee
C. F. Childs and Company
Incorporated
Third National Bank
in Nashville
Eldridge E. Quinlan Co. Inc.
,
Tucker, Anthony & Co.
Shelby Cullom Davis & Co.
Mackey, Dunn & Co.
Incorporated
€
The Commercial and Financial Chronicle
(264)
in the National
used
yield
Dealer-Broker Investment
and
York 4,
Plant
It
understood
is
to
send
that
the
interested parties
Annual Review and
Forecast
—
Booklet
—
H. Hentz &
Street, New York 4, N. Y.
Also available
analysis of Consolidated Railroads of Cuba.
Bache
Selected
List—Brochure of
Co., 60
is an
private
Electronics
Dollars
Wall
and
San
in
group
Co., 42
Francisco—Carl
Assesses
Loeb,
M.
Advantages—Information—Industrial
York
in
the
Atom
Age—Brochure
Street, New York
Pullman Inc. and
erence
tion,
5, N.
Y.
including list of 25
McKinnon, 11 Wall
Also available
is
a
bulletin
and
ABC
on
Vending
Motors
and
an
analysis
Air
in
Mills'
Co.,
1033
5,
N.
Y.
Bowater
Thirtieth
Also
Street,
Ill
—
N.
Washington
W.,
W.
Corp.,
and
Gas
Columbia
C. Pitfield
Cerro
de
Wall
Pasco
120 Broadway,
bulletins
are
Fireman's
Fund
Suburban Propane
New
American
on
Insurance,
Gas Corp.
Company—Analysis—Ira Haupt & Co.,
Forest
&
Products
Limited—Current
Annual
Inc.—Data—Aetna
Securities
Pneumatic
Tool
Co.—Bulletin—H.
Beaver Street, New York
4, N. Y.
alysis of Anheuser-Busch, Inc.
Corpora¬
available
is
Co, 60
Also available is
an
an¬
film
of
Co.—40-page book highlighting the
company's facilities and engineering developments—Cincin¬
nati Milling Machine
Co, Cincinnati 9, Ohio.. "
Colorado Interstate Gas
seatic
Company—Analysis—New York
Corporation, 120 Broadway, New York 5, N. Y.
Southern
Ohio
Company — Bulletin
John F. Falvey, 25 Broad
Street, New York 4, N. Y.
Crossett
Company
— Analysis — La
Salle
Street, Chicago 4, 111.
Salle
•
—
shares
Street, Oklahoma City, Okla.
Over-the-Counter Index—Folder
showing
of
shares
$8.33%
the
public win
for
total
a
Securities
Continued
on
page
114
up-to-date
com¬
a
proceeds from
due
Particularly Adapted
rolled
120
Baker, Simonds & Co.
fitrip mill of The
Stanley
Works
at
Bridgeport,
Conn, and for general corporate
including
purposes
loans
paying
off
borrowed in
ac¬
quiring the plant.
The
new
will increase
company
capacity
plant from
the
of
188,000
300,000
tons
Bridgeport
tons
of ingots
and
will
diversify products to include
pro¬
duction
a
year
of carbon
electric
required
and
since the
instead
scrap
alloy bars.
furnaces will
raw
will
company
iron
of
ore
—H. A. Riecke & Co. Inc.
Pittsburgh
Contemplated
construction
estimated to cost
expected to take 12 to
during) which
to
18 months
the
time
continue
is
$9,124,000 and is
company
operate its
open
Dealers
in
REAL ESTATE
BONDS
—
★
—
111
N.
Y.
Security Dealers
Ass'n
Broadway, New York 6, N. Y.
Telephone
WOrth
2-0510
Legal for Savings Banks
and Trust Funds in
BROADWAY, NEW YORK 5, N. Y.
.REctor 2-7760
1-945
10%
Security Adjustment Corp.
TRiangle 5-5055
Teletypes
NY 1-944 & NY
To Yield Over
Established
1935
1G Court Street, Brooklyn, New York City
We
IJomitra securities
Arthurs, Lestrange & Co.
St. Louis
Buy and Sell Alt Securities
Fusz-Schmelzle
Co., %tt\.
& Co.
Member
I
DEPENDABLE MARKETS
GABRIEL
SECURITIES
N.A.S.D
3420
Broker and Dealer
BERGENLINE
UNION
AVENUE
CITY, NEW JERSEY
UNion 4-7404
Material and Consultation
TROSTER, SINGER & CO.
Members: N.
Y.
on
Security Dealers
Association
Japanese Stocks and Bonds
2-2400
as
material.
1—Harbison & Henderson
Philadelphia
HA
be
blast furnace will be
no
BONDS
Coburn and Middlebrooh Inc.
Los Angeles
1, 1970, for ex¬
expanding the hot
in
steel
to Service Firms
Inquiries Solicited
Telephone
«
Feb.
penditures
SECURITIES CORP.
p. f. fox & CO.
.--Dallas Union Securities
Company
Hartford
sale
$6,000,000 first mortgage 4%%
New York
Gottron, Russell & Co.
Detroit
used, with
private
a
UTILITY—RAILROAD—INDUSTRIAL
to—
Glore, Forgan & Co.
Dallas
unit
per
$9,200,000.
including
Your
,
The price to
$100
Net proceeds will be
Members
385 Over-the-Counter Securities
Cleveland
be
C. H. TIPTON
ALL CLASSES OF BONDS
AND STOCKS
We Are
Chicago
at
UNLISTED SECURITIES
in
through private wires
of
Co, 208
With Retail Distribution
on
an
stock
share payable in cash
per
FOREIGN ISSUES
Nationwide coverage
common
debentures at par.
or
and
purchase
—
AND
For Financial Institutions—
•
of
to
hearth furnaces and strip mill.
DEALER SERVICE
PUBLIC
Dependable trading markets
warrant
—-
parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter
industrial stocks
•
be offered
stock
common
COMPREHENSIVE INVESTMENT
Davidor, 419 N.W.
an
stock.
Co.
Stocks—Annual comparison and analysis
—Laird, Bissell & Meeds. 120 Broadway, New York 5, N. Y.
47th
series
A,
1975; 920,000 shares of
stock, par value $1 per
eight-year
will
New York City Bank
Oklahoma Oil Production—Bulletin—Arthur
sub¬
debentures,
MORTGAGES
We Offer
&
Han-
Electric
charge for
showing before luncheon club, civic, or other groups—Film
Department, General Mills, Inc., 400 Second Avenue South,
Minneapolis, Minn.
—
to
issue
92,000 units, each unit includ¬
ing a $50 registered debenture, 10
use
General
York
City Banks
Preliminary results
Blair
Incorporated, 44 Wall Street, New York 5, N. Y.
suited
area.
in
used and
&
mill
The
common
Modern
Hentz
the
These securities will
to
111 Broadway, New York 6, N. Y.
Also
information on Oxford Electric Corporation.
Sec-
Weeks, 40 Wall Street,
presentation
Report—Available without
New
of
the
Corporation—Analysis—G. H. Walker & Co,
Enterprises,
South La
Returns—8-minute
De¬
$4,600,000 of 6%
of
common
Co., Inc., 30 Broad St, New York 4, N. Y.
tion,
Chicago
report—
steel
a
of
short-term
Street, New York 5, N. Y.
Chemical
85 selected stocks
on
in
share; and common stock pur¬
chase warrants for
276,000 shares
7,
Broadway, New York 6, N. Y.
British
1
available
Paper
Arkansas Western
5, N. Y.
1954
Brochure
Bonds—Market
Columbus and
1955—Special report
formed
Cincinnati Milling Machine
Japan—Circular—Yamaichi
for Letter CF 31—Hornblower &
Winkle
—
Salle Street, Chicago 3,
La
with
its chief
York 6, N. Y.
Mr.
135 South
Products—Analysis—Walston & Co.,
bashi-Tori, Chuo-ku, Tokyo, Japan, and 61 Broadway, New
New York
Co.,
Rochester Telephone
Ltd., Ill Broadway, New York 7, N. Y.
Market Outlook for
today (Jan. 20) a
Northeastern Steel
by
company
due Feb. 1,
the
Enka,
of
Japanese Electric Power Industry—Analysis in
"Monthly Stock
Digest"—Nomura Securities Co.,- Ltd., 1-1 Chome, Nihon-
—as
possibilities—
Corporation.
Investment Opportunities
rities Co.,
Corporation,
&
land
bonds
on
Automatic Vendors with particular ref¬
to Automatic Canteen Co. of American, Rowe Corpora¬
American
a
the needs
of
50.000—F. W. Stephens, 15 William Street,
stocks which should benefit—Thomson &
investment
of
D. C.
5, N. Y.
Investments
list
Energy Is and How It Is Applied—4-color sheet
with listing of 100 atomic stocks—Atomic
Development Se¬
De¬
Stocks—January issue containing over 1001 charts
showing monthly highs, lows, earnings, dividends, capitali¬
zations, volume on virtually every active stock listed on New
York and American Stock Exchanges,
covering 12 full years
to Jan. 1, 1955—single copy (spiral
bound) $10.00—yearly
with
Co., 1 Wall Street, New York 5, N. Y.
What Atomic
Graphic
(6 revised issues)
issue
new
ordinated
guide and reference card—Tripp &
Co., Inc., 40 Wall Street, New York 5, N. Y.
York
Relocation
a group
of 25 investment bankers
offering
for public sale
three
curities
velopment Service, Florida Power & Light Company, P. O.
Box 3100; Miami 32, Fla.
&
Nuveen
Turnpike
of Phila¬
Boston 10, Mass.
prospects,
Walker
John
cluding States, Counties, Cities, Towns and Districts—47th
edition—-Tyler & Company, Incorporated, 11 High Street,
Florida's
Estabrook & Co. heads
Corp,
111.
Financial Statistics of the Commonwealth of Massachusetts in¬
New
H.
Tollroads, Railroads and Piggyback Operations
Sense—"Highlights No. 20" bulletin—
appraisals of City
delphia and Philadelphia School District Bonds.
Witter &
Market Analysis — Facts and Principles — George A.
Chestnutt, Jr.—booklet plus next three weeks of American
Investors Service Market Analysis Reports—$1.00—Ask for
CC-101, American Investors Service, Larchmont, N. Y.
Street, New York 5, N. Y.
semi-annual
are
Railroad, R. P. Jobb, Asst. V.-P., Wilmington,
Stock
talk
a
Company, Inc., 123 South Broad Street, Philadelphia 9, Pa.
available
available—Atlantic
consists
Equipment Trust Certificates—Semi-annual appraisal—Stroud
&
Southeast—Details
Company, Union Central Building, Cincinnati 2, Ohio.
G.
Troster, Singer & Co., 74 Trinity Place, New York 6, N. Y.
Also
Securities Offered
the
in
Ratings for Ohio Municipal Bonds—Pamphlet—J. A. White &
issues which appear attrac¬
Coexistance and Finance—Armand G. Erpf—Reprint of
&
Line
Securities Outlook for the Investors and Business Executive—
Letter—Fortnightly review of the Canadian Securi¬
a
Northeastern Steel
cember, 1954 to provide New Eng¬
Market—Newling & Co., 21 West 44th Street, New York
36, N. Y.
&
before
to
N. Y.
Investment Policy for
1955—Study—Dean
Co., 14 Wall Street, New York 5, N. Y.
ties
Rhodes
Front
46
Positive
tive—Bache & Co., 36 Wall Street, New York 5, N. Y.
Canadian
Inc.,
as
period —
Street, New
13-year
a
Products and Processes—Booklet M describing the useful prod¬
ucts of research—Union Carbide and Carbon Corporation,
30 East 42nd Street, New York
17, N. Y.
the following literature:
Beaver
Bureau,
over
N. C.
will be pleased
mentioned
firms
Quotation Bureau Averages, both
performance
Quotation
Locations
Coast
Recommendations & Literature
market
National
Thursday, January 20, 1955
,..
74
Trinity Place, New York 6, N. Y.
Through The Years
—
Dependable
NY
without
1-376
61
Broadway, New York 6, N. Y.
Tel.: BOwling Green 9-0187
Head
ORIGINATORS
obligation
Office Tokyo
AND
UNDERWRITERS
CORPORATE
DEMPSEY-TEGELER & CO,
PUBLIC
AND
FINANCING
Volume* 181* J Number 5396
.J. The Commercial and Financial Chronicle
.
(265)
somewhat
keep 1 the" economy
strong;: and
virile.:rf:•• :
Naturally, I
-
1954
By HARLOW H. CURTICE*
", President of General
"highest in
leading auto producer predicts
000
policy to keep
endorses
pace
an
a new
the
that there
facilities to match
Nineteen fifty-four was a
1955.
Here
are
specific
fore¬
the
that
auto¬
mobile
indus-
try
would
produce in the
of six
area
million,
spread. It had
300
thousand
fect
pas¬
Harlow
cars
H.
Curtice
•
dollar
froril
terms
the
'
The elements of
would
level
not
far
be
attained
the
A
brief
review
of
what
hap¬
While
Most
elements
of
our
year.
sales
best year,
Measured
Motors
However, in passenger
1954
was
our
second
yet available, it is estimated that
exceeded only by 1950.
in
dollars,
General
within 2% of 1953
was
New
in
by
of
Mr.
First
Dated
strengthening, of
is
clearly
evident. I was greatly impressed
with
the
economic
recovery
of
$6
that
indicate
the
prosperity
England and six European
coun¬
tries which I visited last Fall. To
cite
one
example, automobile pro¬
duction
abroad
has
reached
sell
or a
solicitation of
an
Our three overseas
manufacturing operations in Eng¬
land, Germany and Australia pro¬
353
duced
year,
an
1953.
The
and
thousand
units
prosperity of the free world
Continued on page 111
demonstrates
American
1955
and
capacity
'
Due January 1, 1985
101.931% AND ACCRUED INTEREST
Copies of the Prospectus may be obtained in any State only from
undersigned and others as may lawfully offer these securities in
such of the
such State.
•
Union Securities Corporation
Salomon Bros. & Hutzler
Kuhn, Loeb & Co.
Wood, Struthers & Co.
January 19, 1955.
This advertisement
xs
neither
an
The
for
any
■
...
...
•
offer to sell nor a solicitation of offers to buy
offering is made only by the Prospectus.
any
of these securities.
January 19, 1955
,
180,000 SHARES
conclusively
has the
industry
the
leadership
Food Mart, Inc
to
Common Stock
;
Underwriters
—
•
($2 Par Value)
'[■
Distributors
Dealers
Price $10.50 per
■
share
PUBLIC UTILITY, RAILROAD
Copies of the Prospectus may be obtained from any of the several underwriters,
including the undersigned, only in States in which such underwriters are qmlified to
act as dealers in securities and in which the Prospectus may legally be distributed.
„
INDUSTRIAL and MUNICIPAL
A
:
SECURITIES
Shearson, Hammill £ Co.
Lehman Brothers
Paine. WebberJackson £ Curtis
Langley & Co.
Members New York Stock
11S Broadway
Exchange
Now York S, N. Y.
E. F. Hutton £ Company
Francis I. duPont £ Co.
Russ £
Company
First Southwest
Tel BArcUy 7-8800
Company
(Incorporated)
Jocorporatod
^
Shields £ Company
Rotan, Mosle £ Co.
Rauscher, Pierce £ Co., Inc.
r. C.
last
increase of 36% over
increasing productivity
offer to buy these securities.
January 1, 1955
an
all-time high.
the
of
economies
Mortgage Bonds, Series F, 3Vi%
OFFERING PRICE
.
that
world-wide
A
1954
about
of
corporate
England Power Company
the 1953 all-time record.
This
address
Motorama
national product
the
highest for
gross
1954
sales
Curtice at the
Luncheon
for
Business Leaders N. Y. City, Jan. 17,1955.
♦An
CM
total
additional
release
spending.
peacetime year and within 2% of
the
will
turn
$25,000,000
economy
Capital expenditures by all in¬
dustry reached a total of $27 bil¬
Sales of
General Motors cars lion, a near record figure.
and trucks in the United States
Consumer
disposable
income
and
Canada, including overseas was at a record level, and total
shipments, totaled 3' million, 450 consumer spending rose through¬
thousand
units.
This
compares out
the
year.
Employment re¬
with 3 million, 496 thousand in mained high.
1953 and makes 1954 our third
While the final figure is
not
best
expenditures by the Fed¬
funds for consumer and
offering is made only by the Prospectus.
shipments, industry sales totaled
6 million, 950 thousand units.
car
in
needs.
demon¬
underlying
again the automobile in¬
showed surprising strength. The
dustry demonstrated its un-*construction industry, both pub¬
matched
vitality and power to
lic and private, established a new
spark the nation's economy.
record.
Housing starts, for ex¬
The industry produced and the
ample, were 10% above my own
domestic market absorbed 6 mil¬
forecast last January, which was
lion; 200 thousand units last year. considered by many as extremely
Including Canada and overseas optimistic.
Once
re¬
our
.
NEW ISSUE
stimulus.
national product
high level of
gross
*
Other
year
economy
more
pened in 1954 would seem to be in
from
far
for
eral Government will continue to
they will reach about
$7 billion. This represents prog¬
ress,
but
a
realistic
appraisal
shows that we are moving ahead
much too slowly.
The best au¬
thorities agree that we must invest
at least $10 billion a year for the
next 10 years to get the safe and
efficient
highways this country
strength in the
The
vitality than many forecasters had
believed possible a year ago. In¬
flation in consumers' prices was
1953.
•
far
order.
a
not
this
a
Estimates
This advertisement is not an offer to
halted; inventory adjustments was
accomplished, and a sound and
orderly transition was made from
a
part war to a peacetime econmoy.
American industry main¬
tained
a
high level of activity
without artificial government
try and
billion.
These factors
strated
Third, I predicted a continuing
high level of employment, con¬
sumer expenditures, housing starts
and capital investment by indus¬
near-
billion currently
the security of
$40
quired
nation.
demoralizing ef¬
price structure
a
national
The
in
about
did the pressures
chandise.
high
expenditures
have reached
Economy
the disposal of
1953.
tures will recede from the level of
busi¬
by
the
dependent on war
expenditures,' there is
indication that, such expendi¬
national
Highway
Elements of Strength in the
created by
slow-moving mer¬
adversely
the domestic market and a total
affected
the
earnings • of
en¬
of seven million including Canada
franchised dealers.
Despite this,
and overseas shipments.
dealers handling General Motors
Second, that
General Motors products enjoyed another profit¬
volume of sales in physical and able year.
senger
and trucks for
at
not
retail
the
on
—as
hold
is
defense
no
built.
year in the automo¬ economy are more discernible to¬
industry. It was the first full day than they were in January,
'
year
since
1940
in which
the 1954.
Of greatest importance is the
normal competitive forces of the
market exerted themselves.
widespread public confidence,
which is in sharp contrast to the
Unfortunately,: bootlegging,
caution that prevailed a year ago.
which is the wholesaling of new
I believe a high level of em¬
cars
by enfranchised dealers to
ployment will be maintained in
used-car
lots
1 and
other
un¬
1955. The work week should be
authorized
outlets,
was
wide¬
casts:
First,
highly
the reasons:
bile
three
expenditures
should
as I see them.
should
exceed
1
million,
200
suspect it: will come as no thousand. More schools, hospitals
surprise to you that I am opti¬ and other public buildings, as well
mistic about business generally in as many private projects, will be
competitive
vision. I
made
Capital
ness
I
1954 A Highly Competitive Year'
depression
no
In my
con¬
ahead
a
was
With
nation
or
record level of 1954. The need for be substantial, although we have
good friend, Mr. modernization and expansion is every reason to anticipate a de¬
cline from the present high level.
Kettering, puts it, that is where urgent and continuing.
we are going to spend the rest of
The construction industry is ex¬ In the event of such a decline,
our lives.
So, once again I shall pected to better even~ itfe amazing there should be a corresponding
reduction in the tax burden.. This
discuss the prospects for the year record
of
1954.
Housing starts
heavy capital investments made by industry.
statement
levels.
record
prevailing, consumer
spending
will
be
substantially
as higher than last year.
business prophet.
.
my
,
be because, as my
expansion
with growing consumer demands. Strongly
$100 billion highway program,
this time last year,
standing
amateur
my
at
in 1954.
rise, and
fidence
I think all of us are
interested in the future. We should
great despite a 30% decline in defense
many - * people * were
pessimistic deliveries. Defense products repre¬
about the business outlook. I did sented 14% of total dollar sales,
not
share that feeling.
Perhaps as against 19% in 1953.
you will recall
'
-
be
than
will
disposable incomes will
consumer
my
However,
Administration's
which j he stated, will provide transportation
At
a
our
General Motors
Describes
and tracks.
cars
confirmed
Probably .it would be
better for me if I did not risk
peak in 1955,
history," head of
aggregate output of 7,600,-
will reach
economy
with automobile sales the
pleased that the
estimates.
Motors
further
Predicting the national
am
have
results
longer
incomes
Personal
9*
Walston £ Co.
Fridley £ Hess
The Commercial and Financial Chronicle
(266)
10
.Thursday, January 20, 1955
nomic forces. Small wonder if the
What
businessman
Convertibility
the
and
perplexed
om
Means to Business
A Summarized Investment
public
lay
they try to fath¬
are
the merits of conflicting argu¬
as
ments ancf assertions.
.
Outlook for 1955
'
.
By DONALD F. IIEATHERINGTON*
National Foreign Trade
By THOMAS F. STALEY
Council
Concepts of Business
What
Foreign trade expert, after defining currsacy convertibility
and the concept of business, with its diverse activities, dis¬
cusses relationships of foreign trade to convertibility.
Says
convertibility is essential to a free market economy, which
comprises: (1) freedom to locate potential buyers; (2) free¬
dom of choice for the customer; (3) opportunity to compete;
(4) the right to deliver merchandise without hindrance, and
(5) the right to transfer proceeds of sale and receive pay¬
ment in the currency agreed. Points out convertibility requires
a full-fledged, functioning exchange market.
Stresses impor¬
tance of maintaining as well as fixing convertibility.
Granted
that convertibility is a
whether
fresh
or
new
there
is
q u
the
i rements
impliof
convertibility
per se. On the
hand,
there
Heatherington
respect
tions.
♦An
to
both
There is
has
become
has become in
inordinate
business,
be excused if
bit cynical about
amount of attention
it
convertibility
something more.
It
a
sense
grouping of firms and/or
views
and
recommendations
most
and
ac¬
to
by Mr. Heatherington at
the Annual Meeting of the American Finance
Association, Detroit, Mich.
industries
dollar
program
of
political
choices
and
of
eCO-
the
far
overall
'
It
The
economy.
is
common
stock
knowledge
market
rampant bull.
of
1954
F.
Staley
indices, will surpass the
just past. It seems probable
that these predictions are based
upon three major factors:
outstanding
success
front pages, a development
normally calling for caution. The
government's views in this regard
were made equally obvious
by the
recent increase from 50%
in
to 60%
margin
requirements, an in¬
which, while it had little
crease
bearing
credit,
over-extension of
nevertheless, an indi-
on any
was,
concept,
being indivisi¬
GOLKIN 6- CO
in interests, attitudes and
of activity. The uniformity
Scrip
scope
Warrants
-
and
identity attributed are largely
illusory. A distinction must be'
made
REORGANIZATION
business
between
essentially
character
local
business
and
international, since
SECURITIES
which
is
61
in
national
or
which
BROADWAY. NEW YORK 6
is
the problems
met and the personalities involved
decidedly different. The pre¬
cepts and practices valid for the
are
one
type
for
the
other.
vergencies
MEMBERS
New
York
American
120
Stock
Stock
even
same
be
Exchange
Exchange
found
;
those
field
or
of
en¬
lesser extent may
a
within
the
single firm.
These comments may sound ele¬
mental.
REctor
They underline, never¬
theless, the fact that convertibil¬
2-7800
ity's
be
BRANCH OFFICES:
254 Park
meaning
read
in
for
business
plural
a
Homer O'Connell & Co.
must
INCORPORATED
multiple
or
In
sense.
Building, Detroit, Mich.
addition, they go far
toward explaining certain incon-.
1 Press Plaza, Asbury Park, N. J.
Avenue, New York
sistencies
which
been
and
accused,
parts.
as
whole
a
but
should
difference
Investments for Forty-Eight Years
contradictions
business
properly
Merchants in
to
Teletype NY 1-1650
di¬
between firms;,
as
area
deavor, and to
BROADWAY, NEW YORK 5
Tel.
Buhl
the
the
are
Tel. WHitehall 4-4567
so
the factor of geography.
They exist
in
Nor
confined
created by
MCDonnell & Go.
not prove to be
may
which
be
Finally,
of
they
Brokers & Dealers
has
more
ascribed
between
to
particular
provide
a
120
schematic backdrop against which
to trace the varied implications of
BROADWAY
•
NEW YORK 5,
Telephone DIgby 4-0770
N. Y.
Teletype NY 1-1896
convertibility.
n
WE UNDERWRITE AND DISTRIBUTE
Convertibility and Foreign Trade
We know from observed experi^ '•
that the degree of interest
ence
Whole issues of Securities
of medium-sized industrial
in and
understanding of
tends
corporations.
to
recede
the
is from
any
event
farther
the
•
Preferred Stocks
It is not surprising, there¬
scene
of
fore, that among business groups
it should be the foreign; trader
Debentures
•
one
action.
Bonds
Brokers and Dealers in
re¬
moved
Common Stocks
and
investor
strated
the
who
has
greatest
Industrial, Municipal, Public Utility and
Over-the-Counter Securities
demon¬
consistent
•
of what convertibility,
Foreign trade, in fact,
is by nature the first sector of the
awareness
Cooperation of Brokers and Dealers solicited
change
EWERWKSSfo
to feel the impact of a
the international en¬
vironment,
lose should
Here,
be
115 BROADWAY
NEW YORK 6, N. Y.
-
—•—
in
INCOirOIAlit
ESTABLISHED 1907
Bank & Insurance Stocks
involves.
economy
and
has the most to
the trend be adverse.
parenthesis, it should
understood that "foreign trade"
as a
comprehends
more
Continued
t
G. K. Shields & Co.
'
Member New York
on
page
5 7-
Security Dealers Association
-
•
.
15 William St., New York 5, N. Y.
than merchan¬
dise exports and imports. "Foreign
a
This fact regularly
imade
Thomas
1955,
year
ble and homogeneous is vastly di¬
verse
that
was
formal
from
new
nec¬
but, at the same time, a
force of great importance to the
immediate, pertinent import.
business
as
need
,
.
SlOnS,
Whatever
-
basic
to fill a serious nationwide
essary
in
predict¬
The
and
highway construction—a step
to
jn rnost
(1)
I
•••
(3) The government's announced
nized
persons
key
billion
areas.
that
-
•
virtually synony¬
garding a variety of truly funda¬
mental
matters.
The
inevitable mous with management, and the
business view is the managerial
result has been to confuse cause
view. There are other concepts of
and effect,
proposals and deci- business, but these are the three
address
Rights
tsuch
community
ed
•
.steel, automobile and construction.
business
have
*
••<
(2) The favorable prospects for
spokesmen for
ancil¬
combination of gov¬
business in turning
prosperity which beckons
1955.
Impressive
the
a
and
becomes
ness
gap
and
felt
emphasis placed
''
turn
1954
be
can
thus involved, busi¬
are
into the
for¬
we
a
so
the recession that threatened 1954
sig¬
first, the outlook
1955, optimism
activity, and sharing a common
approach and outlook. Where in¬
dividuals
two
by
ernment
th-e.
from
of
re¬
be
achived
cover
invest¬
e
As
engaged in the indicated branches
nqt only a
shall
ment business.
lary services, such as finance, insur¬
ance and transportation. From still
But
to
more
publicising
over-publicised market of 1954.
Investment
and,
outlook
This
and
I
of
end
Sees too much misunderstanding arising
security
second;
th
another angle, business is at times
visualized as an institutionalized
shining symbol, but also a con¬
venient
peg
on
which to hang
and
abroad, with
definite
trade.
average
hardly
received.
policies and
a
primarily with manufacture
distribution, i.e. industry
1955,
consider
I
prices
usually that
directly
and
concerned
Actually, converti¬
is worth the
alone
has
here
F.
ror
sector of the economy,
portion
of closely related
bility
opinions
what
for
the
nificant phases:
specific
a
sion
and
U.
denominating
or
a
be said pub¬
licly concern¬
ing the role
of
with
discussing
Outlook
occurring during a prescribed time
period. More narrowly, business
also is regarded — perhaps with
greater frequency — as identified
the whole idea.
a
In
amount of all transfer transactions
seems
from the
.
broadest, most general
sense,
business is thought of as
embracing nothing less than the
complete process of production
and exchange, and as being meas¬
ured quantitatively by the total
may
the
individual values.
broad front have
on a
an
strongly the "average" stock prices, and
on
the
In
may
that
often
so
footing and there will be
themselves.
we
certainly
man
to
sound
of
appraisal of effects.
assessment
he has become
1
is
deal
great
an
Mr. Staley maintains security prices
"practical"
of
an
concept,
moreover,
be widened to permit inclu¬
alded
that
believe
if
Perhaps the best way to proceed
is by taking a look at the terms
had been discussing
the prospects and prerequisites of
convertibility from the beginning
of time, and—what is more—in
repeating circles. The imminence
of convertibility
has been her¬
and the
other
though
as
re-
cations
views and
are,
On reflection it sometimes
consequence
matter
a;
Members of the New York Stock Exchange
to
not
means
essentially,
interpretation,
tions to be corrected.
anything
to be said of major
about
there
is
wholly,
unhappily,
misunderstandings in both direc¬
vital and timely topic, it is doubts
ful
filled:
be
convertibility
business
Partner, Reynolds & Co., New York City
DIgby 4-9755
Bell
System Teletype NY 1-1682
Volume 181
Number 5396 :
The Commercial and Financial Chronicle
"
**
(267)
cation
that
to carry
It
is
speculation
to
not
was
all
volume
in
securities
my
reflect
this
the
tremendous
strides
has
economy
basic
taken
is
It
too
much
also
contention that
my
function
of
into
most
the
the
uct
of
Selected
"averages" which
too
been the
represent
tion of the
I
feel
broad
total
that
front
small
market.
security
stand
sound
on
and
sirability
value
will
try.
..
values wherever available.
I
would
like
the
moment
outlook, for
vestment business.
*
misunderstanding
can
the
1954.
For more
securities
whipping
boy.
jured
came
the
The
ogres
1933
are
corporate
I
for
means
point
General Motors
to
the
W.
Is
Free
Laidler
Enterprise:
Edited
—
with
by
Joins
A
Harry
(Special
;'
article
an
"The
tional
•Meany
-
Challenge of Interna-
Crowley
Communism"
'
—
by George
League for Industrial
Democracy,
112
Alpbach August
raising
proposed
offering of $325,-
East
19th
s;
Schotten-
Vienna, Austria (paper);
gasse,
closing,
main
(1)
con¬
It
I
wish
to
reiterate
points:
is
'
contention
my
"
merce
basic
economic
values
and
health
and
well
basic
being
to
of
the
in
free
a
(2)
increased
1
the
by
securities
wide
a
level
activity
business
margin
has
economic
in
failed
to
progress.
It
is
with
my
any•
busiest
due
widely
since
and
today
that
can
erations of
discussed
1953
just
as
new
over¬
firm
my
funds
Join
''
belief
vitally
that
needed
Bowen
two-
have
and
Robert
become
L.
Mateer
connected
with
Street, members of the New York
_
Chronicle)
Cohen
*
with
is
»
Goodbody
Bax¬
Salle
&
—
William II.
with
connected
now •'
Co.,
North
1
the prospectus.
C^., Union Com¬
offer
The
Reynolds Adds
to Staff
(Special to The Financial Chronicle}
to
sell,
nor a
solicitation of
offering is made only by the
and Boston Stock
over¬
Exchanges.
$0.10
—
an
offer
to
•"
prospectus.
pursuant
Share)
by the Underwriters
as
set
conditions,
to
purchase such of the
Common Stock
he
may
forth in the prospectus.
Subscription price
in
certain
the Subscription offer.
to
prospectus may
to Warrant holders
share
per
be obtained from
any
states in which such Underwriters may
of the several Underwriters
legally offer these shares
compliance with the securities laws of the respective
stales.'
Rauscher, Pierce & Co.
Russ & Company
Eppler, Guerin & Turner
Howard,-Weil,-- Labouisse, Friedrichs & Co.
Straus, Blosser .& McDowell
Binford-Dunlop, Inc.
Dittmar & Company
Jones, Miller & Company
H. I. Josey & Company
Laird & Company
Lentz, Newton & Co.
Perkins & Company
*
Keith Reed & Company
-
,
Scherck, Richter Company
Fridley & Hess f
Sanders & Newsom
Dealers and Brokers in
per
'
The several Underwriters have
agreed, subject to
350,779 shares as are not issued
offered
January 14, 1955
♦
1
-
Texas
I
National Corporation
Walker, Austin & Waggener
•'
Railroad, Public Utility & Industrial
Bonds & Stocks
All
Ocer-the-Counter Trading Dept.
Frank MacKain
a
matter
of record only.
any
of these
~
January 18, 1955
Ingalls & Snyder
j.
Members
100
New
Members
!i
»t
as
an
NEW ISSUE
\\
.s;
appears
offer* to sell nor a solicitation of offers to buy
Securities. The, offering is made
only by the Prospectus.
<
! \
i
of these shares having been sold, this advertisement
This advertisement jr'i neither
D. Howard Brown
American
BROADWAY
COrtlandt
7-6800
•
—
Stock
York
..Stock
>
Exchange
Exchange
120,000 Shares
V
C
NEW YORK 5, N. Y.
BeH System Teletype NY 1-1459
11
Hyidon Mfg. Company
,
,
v
ElA% Cumulative Convertible
Non-Participating Preferred Stock
($10 Par Value)
UNDERWRITERS,
DISTRIBUTORS
CORPORATE
Price $10 per Share
(plus accrued dividends)
and DEALERS
AND
MUNICIPAL
SECURITIES
EMANUEL, DEETJEN & CO.
NEW YORK STOCK EXCHANGE
Members
AMERICAN STOCK EXCHANGE
MIDWEST STOCK EXCHANGE
COMMODITY EXCHANGE, INC.
120
Broadway
•
Telephone DIgby 9-0777
New York 5, N. Y.
Teletype NY 1-1973
Copies of the,Prospectus
may be obtained from the undersigned only in such
undersigned may legally offer these-Securities
compliance with the securities laws thereof.
Slates where the
in
Townsend, Graff & Co.
J. Barth & Co.
Doolittle & Co.
'
Cruttenden & Co.
Stein Bros. &
La
Street.
company
~.«
the number.'of share¬
attendant
_
is offering the rights to purchase, through warrants issued to
'he holders of the Common Stock of Texas
Industries, Inc., these shares at the rate of one share
for each share of CommoYi Stock of
Texas Industries, Inc., owned, as is more
fully set forth in
only in
increase in
the
'
Copies of the
Draper, Sears & Co., 50 Congress
and
„
*
■
to
families, so will we, in the
future, point with pride to a vast
:
.
Common Stock
Draper, Sears
car
holders
an
(Par Value
BOSTON, Mass.—Charles W.
point to gen¬
home owners, life
and
Financial
associated
$3.00
proudly
insurance policyholders
the
nation
our
is
is neither
the
as
long
was
.
Goodbody Co.
,,
CHICAGO, 111.—Thomas J. Ni-
of these securities.
continue progress.
view, therefore, that 1954 and the
volume
is
industry, no longer
whipping boy, can assume in
1955 and beyond, its very impor¬
tant function by broadening the
ownership of American industry
and providing that same
industry
keep pace
with almost
every major index of
our
It
a
factors
plus
above, the
■
ATLANTA, Ga. — Perry H.
Ginsberg has been added to the hill, Jr., has been added to" the
staff of Beer & Company,, Trust staff of Reynolds & Co., 39 South
Company of Georgia Building. ?
La Salle Street.
announcement
Subscription offer: The
the securities
1930's, because of the
tax
mentioned
_
(Special to The Financial Chronicle)
,
dominant market factor
19o5; and
economy.
Since the
*
350,779 Shares
TEXCRETE STRUCTURAL PRODUCTS COMPANY
that
to be the
the* most
of
■
With
Building.
relationships to cor¬
porate developments will continue
one
Columbus
individual
not
us
to The
Joins Beer Co. Staff
This
NEW ISSUE
that
security prices have, at long last,
assumed a realistiq. relationship to
primarily
let
Co.,
CHICAGO, 111.
Baxter, Williams.:
ter, Williams &
buy4
<
In
two
P.
Building.
trend.
of
is
However,
Trust
.
St.,
1954—Creitan-
.stalt-Bankverein,' 6
the
forget that the securities business
responsible.
&
Now
'CLEVELAND; Ohio—Frahcis J.
;
on
feeling
common stock as.
&
Hopkins
Bank
.first outstanding example of 'this,
by events in 1929 and
the change of political
philosophy
in
my
Free
}, Symposium,
result of present recog¬
more realistic value of
.
favorite
a
ques¬
a
000,000 of its
20 years the
was
is
bell
—
New
■
up
which
from
it
Thomas
(Special to The Financial Chronicle)
IIow
as
indicated in their;: .-New York 3, N.
Y.-(paper), 350.
prices, equity floatations'
will come back.into their own as International Banking Session in
a
market
than
business
for
is
of
market
the. in¬
arise
over-publicized
a
capital.
A great deal of
action
Bank
-r-
-
securities,
*
,
to' discuss
as
nition of
individual
on*
However,
that,
To sum up-specifically, security
prices in 1955, in my opinion, will
cease to emphasize so strongly the
"average" stocks and will concen¬
importantly
of such
Indicators
Reserve
COLUMBUS, Ga.
Molloy has joined the staff of Ca¬
sion, Federal Reserve Bank of
New York, New York
45, N. Y.
—(paper), on request.
the ownership of American indus¬
continue to be recognized in the
security .markets.
trate
'
tionable, particularly since it does
not
necessarily serve to spread
economic
an
that
a
foot¬
Cabell Hopkins Adds
(Special to The Financial Chronicle)
York—Public Information Divi-
continual resort by corcorporations to the debt method
for raising new
capital. The de¬
'
„
prices On
ing at this time from
standpoint
sec¬
a
Econopiic
Federal
the
ured in terms of
meas¬
and
sity Press, New York 27, N. Y.
$6.00.
'
investment
often
the market is
Confederacy
—
comparatively unreal¬
istic level of security
prices pre-vailing since World War II has
of
Catholic
the Puritan Revolution—Thomas
L. Coonan
Columbia Univer¬
from-
business, namely, that of supply-'
ing capital to industry. One prod¬
since the conclusion of World War
II.
moment
.
nation's
Irish
.
To digress for a
feeling that security.
prices in 1954, at long last, began the listed markets
to
transac¬
tions.
excess.
11
Boyce
Loewi & Co.
Courts & Co.
Westheimer and Company
Prescott, Shepard & Co., Inc.
i
!
t
i»
12
The Commercial and Financial Chronicle
(268)
THE MARKET... AND YOU
By WALLACE
Stocks
reached
STREETE
weighed.
From the stand¬
reactionary movement point of timing, the concensus
this week which, with the is that a trading
range could
weakness in Treasury bonds exist for anything from three
under judicious prodding by to as much as six months
the
Federal
Reserve, kept without
altering
anything
many observers cautious and basic.
the
to
task of
next.
market
itself
indicating what
the
comes
Liquidation Less Urgent
de
•
•.
*»
i-
i
From
sIf
i
t
a
y
%
.
'{f 't|«.
,
*
,
,•-}
,
y'
,-j.t
.
technical
%?>■
Vv: -i
.
stand¬
Selling
shows
signs
of
abating somewhat in urgency.
The Jan.
point the reaction is still well volume
within the bounds of
a
normal
correction of the
spirited ad¬
started early in
easily at times.
*
while
5 setback
of
this
was
a
shares
4,640,000
week's
on
slump,
which did
■
i
350,000 Shares
which
*
*
*
Corporation
I
Price $4.00 per
Aircrafts
margin
last
week,
lag
inclined
were
> i
--r
T
■
■
point
Chinese warfare
to
two
furnishing
couple
a
among
n.~ *1
the better
were
acting issues.
New York Central continued
to
coast
the
for
the
least
at
sue
temporarily
halted. New Haven fluttered
downward without any
great
damage and Baltimore & Ohio
also
seemed
out
of
legally offer these securi¬
The
shares
electrical
from
for
a
pattern that
backing rand
proved
a
bit
vulnerable
more
the
to
selling than the1 list
generally and showed slow
recovery
Neverthe¬
powers.
less, since
important
no
described
a
in
as
a:
—
^..v
*
American
*
❖
,
growing industries—
PLASTICS, INC.
Share
a
(A REAL GROWTH STOCK)
Over $220,000 Cash
recently
Current
$204,000. Current liabilities less than $13,000 (Nov. 30, 1954).
assets
over
put into
Company's Treasury thru public financing.
Company's production expected to be greatly increased' in next 2 weeks. Owns mod¬
ideally located plant in near-by suburb. Now getting set to produce units such as film
film reek, beer and soft drink cases and later a big diversity of
products from outdoor
ern,
cases,
to
Fiberglass
tics
are
automotive parts.
cannot rust,
is corrosion-proof and fungus proof.
about 3 times stronger than structural steel.
aircraft, building materials, etc.
Price $6.00 per
Share
WE GIVE—"U. S.
Fiberglass"
fast growth situation in the
exempt
may
Philadelphia-Baltimore Stock Exchange
Street, Philadelphia 2
Growth
Stocks
-
a
share—as
Originate'
80 Wall St., New York
Philadelphia Securities Company
1526 Chestnut
"BUY NOW" rating at the low price of $2'/2
and rapidly expanding fiberglass industry.
"Where
be
from the Underwriter:
Rend
Members
a
U. S. Fiberglass reinforced plas¬
Wonderful for boat hulls, auto
bodies,
GENERAL INVESTING CORP.--
from Pennsylvania
Property taxation
Copies oj the Offering Circular
new
me
new
BOwling Green 9-5240
report on U. S. Fiberglass Industrial Plastics,
Name
(Please print clearly)
i
Address
Rlttenhouse 6-3435
State
Inc.
'
Telephone
NEW MAGIC PLASTIC
Price-$254
NEW ISSUE
trading
range.
Used in hundreds of industries
furniture
mostly
'They
was
filling;
CUSS "A" STOCK
CLASS A COMMON STOCK
dis¬
tinguished, swaying with the
varying currents elsewhere
in one un¬ ground was lost and
they re¬
40,000 shares, mained within easy reach of
from rather per¬ the
highs, they could best be
INDUSTRIAL
(A Pennsylvania Corporation)
at
equipment
far
were
U. S. FIBERGLASS
LERNER MARKETS, Inc.
favor
least for the present.
of
One of fastest
securities laws of the respective States.
50,000 Shares
with
most,
spirited buying in the is¬
share
Alstyne, Noel & Co.
obtained
a
spotted
through the group. Missouri
Pacific ; and
Union
Pacific
trading hours
rolled up a gain of about a
handful of points, which isn't
January 19, 1955
are
a
were
be obtained from the undersigned only
in those States in which the undersigned may
Personal
to
although on strength
sprinkling of gains of
fair
sistent heaviness later and in
the
support with the
were
FIBERGLASS
These Shares
,
featured
recovered
Strong
first to meet
Common Stock
Van
-
*
usual trade of
Split-Conscious Aircrafts
Consolidated Diesel Electric
ties in compliance with the
*
fused to penetrate their
pre¬
vious high by a slim
>
.
may
bit
a
>
Rails, which tipped off the
latest decline when
they re¬
approximately the
vance
that
same damage to the averages,
hard-hit
November. A growing body
among
the index
proved that atomic energy
brought out only 3,360,000
of opinion has settled on the
carriers.
shares.
could be applied to propul¬
Nearly 1,000 issues
*
#
#
area around 375 as the bottom
lost- ground
sion.
in the earlier
limit unless the reaction is to
*
*
*
Apart from the components
downturn which was whittled
of the averages, there was
be more extensive than cur¬
to 949 losers in this week's
The Erratic Oils
some
damage
sprinkled
rently expected. The big un¬ harsh
handling. The dour note
Oils have held to an essen¬
known is how far monetary
was that the latest upset car¬ through even the more buoy¬
tially erratic course with a
ant groups.
policies are going to tame the
Cement shares,
ried industrials three points
few sprinters around now and
for
market with the psychological
instance, - have been in
then on specific develop¬
lower than the previous low
effects of a Congressional
independent demand through
ments.
Mid-Continent Petro¬
for the year .with the rail previous storms, but in this
investigation also
to
be
leum was a bit hard hit when
week's selling some of the
it was disclosed that a
merger
losses were sizable ranging to
with Sunray Oil was being
This advertisement is not, and is under no circumstances to be construed as
more
than
three
points in
an
discussed
but
offering of these securities for sale or a solicitation of an offer to
Sunray - was
Lone Star Cement.
But this
able to breast the selling of
buy any of such securities. The offering is made only by the Prospectus.
issue's loss proved to be only
this week with a modest gain.
momentary and it rebounded
Texas
Pacific
Coal
&
Oil,
well once the selling subsided.
Copies of the Prospectus
also sold down
sey was
—
.
\
: ■
of this is¬
course
On the other side of the
picture,
Houston
Oil
was
rather prominent on the soft
side and Standard Oil of Jer¬
.
for the
left
the normal
sue.
,
lows
new
average's new bottom repre¬ ready excuse. Douglas, which
senting a smaller retrace- has had an erratic time of it
ment.
,:
/
recently, was able to put on
#
*
*
some
soaring exhibitions by
As
had been widely ex¬ spurting a handful of points
pected, the market uneasiness at a time with the added help
found
especially vulnerable of speculation over another
the blue chips that have car¬ possible split. This is expected
ried the bull movement so far in face of the part that the
for so long. Bethlehem Steel, issue was divided on a 2-for-l
as
Johns-Manville, We s t i n g- basis
recently
as
last
house, General Electric, U. S. Spring after a similar split-up
In the stock split
Steel, United Aircraft, Good¬ in 1951.
year, General Motors, category Douglas cedes little
Allied Chemical and DuPont to
any
of the other splitthe "Average" stocks — conscious issues.
were. all, prominent
A,.
on v<the
T
losing side with losses of two
The plane makers shared
to five points when the going
their popularity with General
was
rough. Among the rails,
Dynamics, which acted as a
Rock Island, Santa Fe, Union
star performer on at least one
Pacific, Coast Line and Il¬
multi-point
sprint" as
the
linois .Central were similarly
atomic
submarine " it
built
Thursday, January 2Q, 1955
...
a
>
:
has
Volume 181
Number 5396
Chronicle
The Commercial and Financial
...
(269)
•
13
*
been
following
an
independent its new high is the best price
was in history for it.\
*
c|niy ;,mildly nicked by this
.
•
*
❖
* •
weeks selling pressure. The '
iccno
cnKcommniKr
\The views expressed
issue
subsequently
turned articie<£0 not necessarily
around
and
showed,
.mild
After commenting
Charge of
Harris, Upham Branch
the: form of
straight debt of
issues, plus re¬
convertible
vival of the
rumor
age-old stock split
this time by a re¬
—
sponsible > house
uted to
a
all
"1
The energy
are
vast
and
contrib¬
T
'
'
tapped
bring
to
•
Chemicals Listless;
;
'
.
>rt
;
The chemicals have shown
little
sustained
strength and
f
■>
K
*
gone through the mo¬
tions with the bulk of the list,
i
•
»
WL
f
*
£m
.
■
Thomas
-
Pont
;
'/
J
^
the
Avenue.-
with this pattern,
;
either.
He ^will
-
rp
Utilities
tion of
xt_-x
have
the
v
it
didn't
w
mucn
io
0
.
year S
•
ST. I.OUIS, Mo:
T J
group
tne
^have
^iehtcr
—
r
ant.
J.. Gerald
..
Vernon W.
Staff of Scherck,
S20
Nnrth
tnetoiieri'
-street^
Midwest Stork
mpan
RnsPtifhaV
tfie
FvrhanffP
mean Midwest fotock Exchange.
or
tne
t^epp e s Uras iurnisnea sny
iysts
movements,
of wide
with
these
way
Georgian
•
•
»
of
Chicago
Room,
Sc^!t
largely meaningless.
«
Society
the
at
Godsoe
Co.*' Jan* 27*
oA
ew
that the intro-
.
forms of energy—
tro-Chemical
Company
will
use—and there will be
i
'
too
much
energy
or
issue
of
a
C
10
holding
Co.,
dividend
of
The
cents.
in
a
since it
years
3-for-l
•
in
m>io
1948.
was
XT
York
and
to The
(Special
Financial
ULM,
is
with
now
.
Minn.
_
State
.T
OQ
Orn
Bond
&
street.
too
many
con-
is that of those less favored
cern
nations which Tapk
With energy, therefore, in
us
us
as a
to
ago—that if
strike
Banner"
one
up the "Star Spangled
in the lobby of the Pal-
liser Hotel in
Club
Calgary
any
Friday
the two Canadians
even
has been
a
thi"s *ro'om^'
in
in this room, I
hfpamp
nirrpnt
oilmen,
by Mr. Godsoe before tfie
of Toronto,
Toronto, On-
T
tario
at
a
P
n
x/M+mbr* tAew ty/od «5tfocA (oxcAanj*
Bonds
who have
roadway,
30-
f
t
#
d\Zeut ^/orA 6,
20,
5/L*t,
W/edc
'
o\($/.
43,
Illinois,, Chicago,
Dixon, Kankakee
•
Pennsylvania, Philadelphia,
BethlehemConnecticut, Hartford, Danbury, Meriden, New Haven,
Torriaffton, Waterbury • Indiana, Kent land • Michigan, Battle Creek,
Bay.City,
Flint,
Ohio, __T*»ledo
Caracas,
*
Grand Rapids,
Tennessee;
Venezuela
Buenos
Aires,
•
Paris,
Argentina
Kalamazoo
Memphis
•
-Wisconsin,
< Cot ton)
France
«
(Foreign
{Foreign
Madison
London, England
Representative)
Representative)
slower
.
place,
...
govern
have
the
despite
the
in Western Canada of one of
world's greatest potential oil boar-
™S>ons
embracing some
Exploration Activity
Looking back over the past year
we
can
see
some
.
our own
would
favorable climate, is the presence
these
.
,
t
&
Members [Njeus York. Slock
YORK
Co.
Exchange
BROADWAY
5
the
culmination of a
promises
trends
Continued
,
investors were somewhat
Wertheim
I'
progress
time when, be it remembered,
SxcAany^s
*
11
the
much
many
Gommoditics
0%uya,
4S0A 5$**«r
!
been
n
poured
INVESTMENTS
&
which
great
NEW
cO/ier leaJinp
,
wnicn: our,
in
into Western Canada
'
i
la-.
,
t.
remarkable transition
in the oil industry since TT i quip
this t
Thp
^ame current.
States
their money
Electric
were
basic inter-
to tell you something
♦An address
someone
present would stand up. But there
.
:
years
120
>
the Canadian
The second factor, without
It used to be said-and but two
evening,
it
!
0.
•
ress nas leit iiuie xo De aesirea.
need for breath.
1884
65
manner
W.
Al
-
.
.
Boston
or
•
.
members
Mortgage Co., 28 North Minnesota
V
Nevertheless
Stocks
,
Chronicle)
—
development that hes
r
the world.;-In..the first
in
Exchanges.
NEW
split
,
State Street,
New
.
the political climate irrwhich the
companies operate in Canada lias
With State Bond & Mtg.
narrow
Hier
1
60
the
Stock
of two to four points
range
most
the
has been in something
trading hiatus in recent
years,
O
when
increased
was
.
been accom-,
crude oil reserves would increase ,plished- mamly; through two -Jacfrom a mere 72 million barrels, by tors which bulk large in the de3,300% to over 2% billions,- he velopment of oil m any country;
find .ourselves still gasping for
a
The real
forms of energy.
he
f
the
^'a^P will be partners servihg industryJias are m the midst of it ™mts» .both Dominion and Provsucceeded in doing vi
vincial, have cooperated with and
nation—not competitors. Each and we who
A bit of
subsided
ano great
ahead. ..
oil; industry, because, insofar and ' —is pat-aaddeal- more
as Yet
petroleum is concerned, ml
exactly what the Canadian oil
est for a11 of
est for all of
anticipation was a soeaker at the Feb. 10 meeting,
sudden breakout on strength
Joins H. p. Wainwngnt
in Keystone Steel right in the
(Special to The Financial Chronicle)
middle of
a
generally soft
BOSTON, Mass. — Raymond C.
tone. It made a new high on
Swanberg is with H. C. Wainright
a rather fat
one-day gain, but &
to
induce many of the graduates
t_
.
we* would
witness-the growth of a gigantic
"
:
.
Pirie form or another,
Carson
engage
°f our universitiesito ignore the
old appeal of jobs across the border, but youngmen of the United
States with the proper ^training
are.now.looking to the Canadian
oil; industry as a field m which
they can progress with the full
have kept pace—that
-
example; niiclear energy—will
luncheon of the Investment Ana-
thing
the
to
Some.ques-,maze• of thousands of
of;,
The;
* > t i an s
h a v e pipelines,
including rt the longest nadi^n^operation of
been raise d pipeline* in the world— that our 01f
industry has i
We need have no concern about
generally, and theirs Lnicago, Analysts to neat
performance was somewhat - CHICAGO, Ill — Charles H.
&
drab, Only the high-priced Percy, President of the Bell
Peonle's Gac furniqbpd anv- Hawe11 Company, will address the
in
_
duotion
for
,
market
to
contributions
r
•,.them all.
,
Canadians
for
valuable
their
oppor¬
-
to
.
pomnanv
tradtag,•*«««.
to
se^m
ex-
f'
i
,
^ Brown' anH ^irharr}
.of
in
..
0Ki^
higher i tnan tne
nigner
uberant first day
ant
but
distiue-
being the oniy group
*„oc,
tunities
with
The
.
,
restrict1 the ^employment of the ■* would have been dismissed as a
LWQ ; With;ocherck Richter older forms. This does not dis- visionary whose enthusiasm had
(special to the financi** chronicle)
-%'1iirb:h^;hbrthdeed'?ahybhe in-thfe- run away with-his common sense,
*.
.
continue
mWtown
off,ce at ^ F,£th Av?nue"
.
o
/most I import-
.
ket, The others in the group
weren't too far out of step;
. •
citizens
States
greater experience,
petroleum industry of this coun'mnattojUn. the",Oil Industry
so'
our 'expanding
1 If
ortet>een ! bold try are expanding every day,
^cononiy to enough tb forecast in'5>Ffeforiiary, that not only should we be a
only should we be able
demands /
on
on.
United
-
thelosing side £anV
^n?b?rs of
; „r1
6 .4
York Stock Exchange, will, foe m
strength;. When, .thatf charge ef the new' Harris-Upham
direction of the nar- office^opened Jan, 19 at 99 Park
prominent
than
•
„
a
in
which four or five years ago were
filledalmost
exclusively
by
'
-•J *"
13
B. Meek
Allied Chemical and dily Tomas B. Meek, Manager/of
havfe been a bit more Midtdwn Offices for Harris, ;Up-:.
tion.
_
result of
this, it is common
travelling about the pipe¬
line construction jobs, through the
oil fields, and in the seismograph
survey camps, to find Canadians
holding responsible positions,
provide ener- 1947, that by the same date in
gy,
in the 1954 the oil industry would have
proper form, increased its spending on explora,-in the neces- tion and deevlopment from $1
sary amounts, million a month to $1 million a
V in the right day—that refineries would have
places, at the more- than doubled, and our conr
right times are sumption ' of j petroleum , products
•;
,
■M
1
was
|"
j
c-' /
x
-
j
■
*'o
r
■
have
■
The
-
As
now
still greater is prudent to look at present.
wonders.
v -
<4
r
us
'
then
and
try.
sources
.
'
questions raised because of the intro¬
of Canada ture in Canada and briefly refer
varied, and giant to some of the prospects that lie
before long will be ahead, at least as far ahead as it
sources
new
cautious air around
it.
■)"i:
;
increasing
an
Canadians
of
quietly fading out of the picture,
or
becoming assimilated as Ca¬
nadians in the progress of the fast¬
est growing business in this coun¬
new forms of energy, Canadian oil executive traces
briefly growth of Canada's petroleum, industry. Says the
smooth transition to Canadian operation of the oil industry
has been due:
First, to the favorable political climate, and
secondly, to the presence in western Canada of one of the
world's greatest oil bearing regions. Describes oil exploration
activity in Canada, and points out Canada is not only becoming
self-sufficient in oil, but requires new markets for its products.
Meek in
speculation over whether
year's financing will take
on
industry to
number
duction of
since its last ex-dividend date.
this
than generous in pass¬
their technical knowledge
more
on
the
of
Vice-President, The British American Oil Company, Ltd.
this
in
strength after having been in Chronicle. They are presented as
something of a downdrift ever those °f the author only.] .
The
ing
By J. GERALD GODSOE*
at any
coincide with those of the
time
been
~
.....
.
,
reluctant about anything ^ spec¬
ulative as searching for oil, have
Canada's Oil Picture
for the most^ftd
course
and
can
on
be
from
pro-
page
65
14
(270)
The Commercial and Financial Chronicle
of studies centered around
group
The Fedezal Reserve and
the
Reserve
changes
comparing
portfolio,
in
selected
components
with the behavior of the Treasury
The Treasury Bill Market
By
EDWARD
Bill
sive
exclusive
Marcus, in examining the effects of the Federal Reserve's
open market operations to Treasury Bills, draws
the conclusion there does not appear to have been any notice¬
able effect of this policy on the
Treasury Bill market, and
other
areas
that
have
occurred
similar
were
indicate that the
shifts
affecting Bills
maturi'ies,
market operates
money
are
In
the implementation
of
its
monetary policy the Federal Re¬
has concentrated
serve
tions
ihcreasingly
communicated
soon
that the rates
so
its
in
Reserve
in
technique
opera¬
Bank
at
"strait-jacket"
the
over
This treatment
longer
issue
past few years.
ings
This
debated
was
p r
as
one
vately
prob¬
ably in 19521
and
publicly
has
been
somewhat
along
Reserve
nual
report
at
"Record
both
o
Policy
tions"
f
Ac¬
of
the
Federal
Market
Marcus
Open
Com-
i 11
m
$ larch
4-5,
jective
encing
was
is
behavior
the
before
rowing
Bill
of
it
did
cause
to
item
ments"
items
exclusive
through
variations
and
to
tainty that
a
remove
some
in
not
pattern
es¬
in
effects
and
agreements
were
the
the
area
of
operation has been the subject of
controversy both within and
outside the System.
to read
assume
1 See
257-331
Hearings
of the Dec. 6 and
"United
on
States
Policy: Recent Thinking and
Experience" before the Subcommittee on
Economic
on
change
1952
in
tificates
year
Stabilization
the
of
the
Economic
Joint
Report
Com¬
(83rd
Congress, Second Ssssion).
an
of
Indebtedness,
additional
comparison
also
included.
The
exceeded
the
Julv 30.
agreement
Bill
holdings
simplification
seemed
the
most
realistic.
As
The
high-
grade municipals and AAA bonds
were
on
ing the desired data, especially for
the period before April
1953, this
3-to-5
notes, and 15-year bonds.
example,
repurchase
of the Federal Reserve—but lack¬
longer operated—Cer¬
no
the
Other U.
as
a
percenetage of its
weekly change for the
four
.
1951-54.
years
increase
cline
after
The
1952
late
1954
in
general
then
and
de¬
be
can
seen
clearly. Significantly, it should be
noted that, other than for the in¬
from
crease
rate
1951
to 1952, the Bill
similarly
to
the
behaved
other groups.
rates
selected
were
"Federal
Reserve
98.0%
71.8%
S.
those
Bulletin,"
!__
Series")—
67.6
71.3
78.6
89.8
124.4
64.8
90.4
130.4
90.4
149.2
This table eliminates the effects
wider changes in
the
points,
toe
rate
twice
basis
that
about
for
the
(.014).
But
since the average
weekly fluctua¬
tion
for
Bills
during the four
years
was
than
more
three
less
the
reasons
longer term issues
to
three
decimal
were
that
Federal
Treasury
sions
car¬
any
greater
ket
than
other
The
sectors
on
that
the
at
issues
(other
the
somewhat
Bill
more
than
time.
securities
market;
holdings
only to rates in the
or
follow¬
governing
the
relationship are possi¬
I
regards
the
the
in
periods.
Treasury
rise.
The
might then
ease
for
weekly
If money becomes tighter
securities
1951- (or
portfolio
to money market
least
at
presumably
would
vary
Reserve
the response
Bill
Federal
rates
Reserve
purchase government
in
the
the strain.
open
Here
a
market to
change in
MEMBERS
New York Stock
Exchange
American Stock
Exchange
•
Boston Stock Exchange
.
Adams
Midwest Stock Exchange
,
American-Bankers Association
-
&
Peck
Members New York Stock
New York State Bankers Assn.
and American Stock
Exchange
Exchange
;
Investment Bankers Association
Canadian
Stock
DEALERS IN
Exchange
*
V
.
•*
RAILROAD SECURITIES
Guaranteed
Leased Line
«•
.
25 BROAD
Boston, Muss.
•
Bloomfield, N. J.
Washington, D. C.
STREET, NEW YORK 4, N. Y.
•
Oil
Princeton, N. J.
City, Pa.
Bonds
Preferred
New York 5f N. Y.
Montreal, Que.
Telephone REctor 2-4949
j
•
'
Common
Unlisted Investment Stocks
120 Broadway
•
•
and
v
Toronto, Ont.
Teletype NY 1-724
Private
unres
to
but
repercus¬
money
in
conditions,
9-to-12
did
in
ease,"
Hypothesis
change
as
fluctuation
rate
than
as
hypotheses
ble.
the
in
months)
the
longer
the switch
"active
the
examined
mid-1954; unlike the longer
of
not
the
Two
cline
extent
government
to
only difference is in the de¬
the
is¬
The logic underlying this proce¬
dure can be stated quite simply.
after
term
new
Federal
was
immediately preceding
mar¬
in
same
,
of
seem
occurring
*
ing week.
two.)
restriction
impact
was
it
immediate
related
were
on
the
study
of
the
on
changes
on
in
effects, such
policy
a
rather
operations
to
after 1952 caused
Bills
dur¬
■
S y s t e m's
to
to
Reserve
the
changes
Since
range
places, in¬
usual
more
to
intention
propor¬
yields
.43.2
immediate reactions of
portfolio.
tionately—.026 being but 45.6% of
.057, whereas .014 is 82.4% of .017.
(For arithmetic
the
Reserve
times
long term bonds (.057
compared with .017), its 1951 fluc¬
much
76.8
97.6
Treasury Bill rate
sues
that for the
was
64.0
55.2
100.8
The next series of tests centered
series
years
142.4
139.2
.
IV
change
.026
was
almost
or
15
weekly
average
Bill
111.1
the average of 1951-52)
ing the latter half of 1954.
points characteristic of the shorter-Uved issues. For example, in
the
74.4% *
155.6
-
for
percentage
1951
129.6%
141.2
97.2
AAA
in
2nd half
124.1
73 6
82.4
—
("Old
years
75.0
83.6
73.2
15
1954
Ifit half
1953
"154.8%
Government Issues:
Years—1
Hence, the data do not
1842
"1951-52
116.0
3-5
indicate
& Co.
1952
45.6%
Is?uas
Months
9-12
stead of the
Founded
pressed
average
1954
ried
Laidlaw
activity of the
be
can
seen best in
There the average week--,
ly fluctuation for each type is ex¬
.1951
Bills—New
tuation
published regularly (by weeks) in
second
changes in
Table I.
a
Treasury
of
necessary to
was
that all
the
total
tility of other rates in which the
Reserve
the money market.
accurate—for
the remarks of President
Monetary
mittee
the
area
of first impact
greatly exaggerated.
selected rates
ma¬
aim
repurchase agree¬
applied
exclusively
to
Treasury Bills. This is not quite
Reserve technique with the vola¬
pages
1954
after
and
agreements
ments
One has only
Sproul of the New York Federal
7,
before
repurchase
Statistically it
The investigation, mainly statis¬
tical,
pursued
two
lines
of
thought. One compared the vola¬
tility of the Treasury Bill rate
the
Ill
The
/
.
on
sector of
the
in
been
TABLE I
primarily at studying the dealers'
I
interest rate structure.
in
attention
the money market other than
gov¬
ernment
securities
dealers, and
significant
as
'
limitation
of
center
the same
repurchase
first.
uncer¬
at
portfolio,
the
supposed,
open mar¬
be aimed
that
market;
as
generally
particularly
for
the
Treasury Bill rate, where the im¬
pact of the change would be felt
the sole
any
particular
ket action might
tablishing
as
Reserve
its
Average Weekly Change of Selected Issues as a
Percentage of
the Average
Weekly Change for 1951-54
repurchase
concluded
credit
to- expand
(or "Treasury Bills inclu¬
of
Federal
and
of
in
would
past
change in the Reserve's
portfolio; that is, the rate does not
appear to have any close connec¬
tion with the System's
operations
in the very short run. In
any one
week changes in the Bill rate did
Hence, the
portfolio
repurchase
agree¬
money
ob¬
•'
independent
.)
it
government
entire
stated
secu¬
generally.
of
to establish the influ¬
conditions
much
system
monetary
of
This
repurchase the
agreements")
studies the effects of a particular
week's System operations on the
the
of
"total
sive
market itself.
Wth this
in mind the author an¬
character
more
inclusive
see
money
problem
the
will
banking
credit
decided
a
in
turities.
consequent effects
fact,
this
years for most of the selected
purchases, the additional reserves
are
short-lived, and do not enter
nar¬
change
of
changes narrower than
in the preceding three-and-a-half
saw
sult
the
rates
this
after
operations,
of
whether
and
■
months
un¬
seem
that the
fear that this limitation of
opera¬
tions would cause undue fluctua¬
decline in
1954; in
six
the
quite
Hence
has
last
rates
of
moves.
The second general conclusion
is that there does not
appear to be
any
noticeable immediate effect
on the
Treasury Bill rate as a re¬
alyzed the rate structure and the
The
1953.
member bank reserves
aim,
for
e e
fur¬
mained
All show increas¬
a
run
period when the Reserve operated
the Bill market seems to have re¬
a
different
issues.
that
longer
the various
money market in¬
stitutions.
But in the immediate
tions
year
extinguishing the re¬
previously supplied. As a
result, unlike other open market
change in technique. One as¬
pect that has hardly been looked
for 1953 in its
term
and
serves
Treasury
to show
seem
level
in
for
the
over
consist¬
changes
on
technique
the
—
rities, thus
the
an¬
find¬
serves
nished about the actual effects of
Board's
effect
rate does not
the
securi¬
so
dealers
theo¬
pub¬
in the Federal
short-term
Reserve
new
While
general
ing volatility in 1953 and the first
supplied helping them to
their inventory during a
period of temporary stringency.
Once the tightness has passed the
of the main parts of
retical lines, while very little
lished information has been
of
unexpected
any
with
portfolio
doubtedly adjusted to the prevail¬
ing policy of the Federal Reserve,
this would have been the
gradual
workings of the change in re¬
haif of 1954, and then
the second half of
carry
questionnaire
on
over-all
monetary policy.
Much of the thinking, however,
i-
into
er
to
government securities dealers,, the
funds
these hear¬
at
necessary
ties (usually Treasury Bills) from
the
for¬
was
malized
Edward
purchases
The
donned.
was
was
the
and
pattern from
that exhibited by the
other, long¬
any
operations effectively. Repurchase
agreements are Federal Reserve
December
the
made
isolate the effects of open market
hearings to realize the uneasiness
with
which
this
self-imposed
Treasury
Bills
the
to
all tend to react alike.
on
the
went
difference in the results.
smoothly that
so
when
markedly
shift
Moody's
Standard
System
week.
ings emerged from this study. Al¬
though the various rates showed
greater fluctuations after 1952—
Bill
'
may
rather
the
Holds this
2V2S),
and
connection
the
II
Some
of
These comparisons, in turn, were
broken down by years to see if
those in
to
of the government securities market.
bonds,
Thursday, January 20, 1955
.
not-appear to reflect
ent
Poor's high-grade municipals.
repurchase
agree¬
ments),
and
repurchase agree¬
ments
were
compared with the
Bill rate, both for agreement in
movement and degree of variance.
policy to limit
marketable
AAA
of
repurchase
agreements,
holdings (also inclusive and
Bill
Prof.
Treasury Bill issues, 9-toissues, 3-to-5 year is¬
sues, U. S. Government long-term
bonds ("Old Series" — fully tax¬
new
months
12
able,
Weekly changes in the
portfolio of government se¬
curities, both inclusive and exclu¬
MARCUS
Assistant Professor Economics, Brooklyn College
what reactions
rate.
total
for
....
Hartford and Philadelphia
1
■
.
Volume 1817: Number 5396
V
The Commercial' and Financial Chronicle
»ti
.
(271)
the rate would be followed
by a
similar change in the
portfolio—
(or decreases) - in the
decreases) in the" latter. The other
line
increases
former followed
by increases
to
(or
reasoning, hypothesis
Federal
tempting to influence' the money- the rate moved in the same direcIf, for example, the in¬ tion. For
example,' in the first
Is to tighten credit, the half of
1951, the change in the
System portfolio holdings of gov¬ System's
holdings of all governernments would drop, and, as a ment
securities
(including those
result, the pressure would first covered
by
repurchase
rharket.i
II,
tention
the response
as
Reserve": actions
at-
TABLE II
•
A.
of.
the Bill rate
sees
^Weekly Changes in
Selected Federal Reserve Government
Securities' Holdings
Compared with Changes in Rates on New
Treasury Bill Issues in. the
Immediately Preceding
'
-•
1.
•
Agreement*.'
All-Government Securities Including
Repurchase Agreements
;
^
Opposite*
in the Bill rate rising
above ..its; • previous
level.
Here:
changes in the Bill rate v would:
follow and i be opposite to the
change in the portfolio; a rise in!
Week.
No
-
agree-
show
Change*
,
up
1951
-
.
■*:"
,
21
v'
''
-
'4
7
\
23
,
"
2
1952
22
-720
1954
All Government Securities
23
1953
-
.
27
mediately preceding rate change
in 15 weeks,
similarly in 8, in 1
week the
16
10
•
Excluding '7-7:/r
Repurchase Agreements
1
"
V
:Vr''
"
1951
17
1952
21
25
6
1953
'12
18
22
20
19
1954
Treasury Bills Including
-14
•:Nv'
7
"I
1951
V
*
•
J7 7...
27'
1952
22
20
1954
7 18
7
17
7.
;-i
•
-77
15
-
12
'
.
.
,
.
*
1953
12
1954
7
24
20
13
20
7
y
'
Repurchase Agreements
1
:
1952i
-21
i
22
1953
•
■
Change:
NOTE:.There
,
'
Either
the
were
Federal
Reserve
same
as
weekly
7
the
done
7'
four
for
each
week
during
1951-54.
years
If
the
hypothesis is correct, there should
be a high degree of agreement for
;.7 24
'
19
each
34
while
rose
the
the other
week; that is, where the Bill
the next Reserve state¬
week.
preceding
statements
in
ment
1954.
the
*
'
*
Including
Opposite*
show
portfolio
with
No Change*
-
the
an
item,
the rate should
see
or
a
increase in
a drop in
drop in the
A similar sign test
comparison
the
of
Wednesday portfolio and the im¬
mediately following rate on new
-Treasury Bills would test the
sec¬
-
ond
21
1952;
19
1953i
should
portfolio item.
B. Weekly Changes in Selected Federal Reserve
Government
Securities' Holdings Compared with
Changesin Rates on New
^Treasury Bill Issues in the Immediately Succeeding Week.
1951
22
,
10
-
hypothesis
in
in
15
All Government Securities
Excluding
Repurchase Agreements
'
—
that
the
action
one
associated with de¬
the other).
Contrary to expectations neither
the
same
the
year
two
degree
of
agreement
20
1952
17
1953
1954
-
19
rtbonrtnn
d
in
c
"Dill
/im
nges in t
repurchases
in,1954
the
J
followi
e
(up
or
\
g week
down), but
agreement
was
neg-
ngiDie.
29
6
14
16
22
9
25
19'
Treasury Bills Including
Repurchase Agreements
could
hysustained, of
be
course, but if correct the agreement
should have persisted
throughout the period.- Such was
not the case, either for the
years
*
1952
17
27
19
18
1953
20
20
1954>
19
24
15
27
23
15
13
18
together.
Similarly, port¬
13
22
by
the Bill
opposite movements in
rate—as expected by the
hypothesis—but at times
assess
before
repurchase agreements) and
total government securities (inc*uslve and exclusive of repurchase agreements)were studied to
? their changes made
S^°Vi Y?nable than
theTFederal. Reserve was
inactive; However, since thefe
JJj® X™
J£ ?
.
iGIYl
W3S
after
or
the
concentration
OUt
Of
tllG
conclusions based
cannoj
be
lHHrKfit
too
good
a
'
«uide
* For'
ttl6
these results
on
considered
repurchase agreements the
System
does
indicate
that
the
operations made for
greater changes in the rates.
For
example,- in the first half of 1952,
in
those
had been
weeks
in
which
there
change in repurchase
agreements, the succeeding change
a
in
the "Bill
rate' averaged
.079
(basis points), whereas during the
same six months, for those weeks
the
total
portfolio exclusive of in which total repurchase
agreerepurchase agreements changed in ments remained
unchanged, the
a
direction opposite to the sueaverage Bill rate change was only
ceeding bill rate—hypothesis II— .047. This greater
change because
in 25 out of 34 weeks (the
port- of Federal Reserve intervention
folio haying been inactive in the increased
during the period that
remaining weeks). But in 1951 the Open Market Committee was
the
two
were
in opposite agreeonly half the time, and in
latter
pothesis
—in
10
portfolio
the
half
of
of
15
the Bill
same
1953
the
actually contradicted
was
out
limiting its operations to Treasury
Bills; in 1951-52 the average rata
hy- changes during those weeks when
changes in the
rate
direction.
moved
In
in
other
the
System was active exceeded
the inactive weeks' changes by a
quarter (.051 compared with .041),!
whereas in
holding of government securities,
a
which
should
market,
54
it
waq
almftet
almost,
.060).
money
10=0
in
indication
uation!
for
have
eased
the
followed by
rate, or an
tighter credit sit-
were
the Bill
of
a
(Conversely,
decreases
in
the
of
course,
portfolio.)
half greater (.087 compared with
For
+
,
,
the
other
portfolio
items
+,
tested the differences
marked, and
appears
no
were
less
consistent pattern
evident.
In
18
some
years
21
1954
v
tempted to
14
1953
v
group
7 9
1952:
-
,
^nal
10
1951
• -
open market operations in the
Bill market. For
example, in 1954
increases
lowed
7
com-
of
words, increases in the Reserve's
folio changes sometimes were fol¬
1951
-
'
evidence
For individual years either
pothesis
hypothesis showed much validity.
At times a rate change would be
followed by an opposite change in
the portfolio,
at times the two
12
For those interested in the
between
moved
19515
rates
further
moved
the
creases
25
of
ment
creases
18
half
the money market — except that
the signs should be opposed (in¬
2
22
>
went from the Federal Reserve to
8
31
•
20
,
1954
■
,,
15
•,
,7
second
12
Only by arguing that without the
Continued
on
page
109
Treasury Bills Excluding
Repurchase Agreements
-
-
7
'•
•
'
•
5.
holdings
preceding
rate
on
Treasury Bills. This
issues of
was
•'
30
-
Repurchase Agreements
4.
the portfolio
immediately
18
9
fell.Opposite: One.
both
or
53
were
both
or
Agreement*
3.
preceding -and
rate rose,
rose
1. All Government Securities
2.
follow
of the Statement date—Wednes¬
new
-K
10
-
would
day—would be compared with the
:
21
:
.
'
1954!
Agreement:.. Both,
No
:
11 '
J
fell.
',
4
-
18
<*
rate
a
"
*'
1951
,
14
19..., :
7' 7 22
"
the
(or
succeeding
weeks.
For example, to test the
first hypothesis in the preceding
as
7 8
18
second
and, exclusive of repur¬ The one
partial exception was the
chase agreements) were compared;
repurchase agreement figure: for
with the Bill rate for the immedi¬
1951-53 there
was
a
significant
paragraph
r
-
•
•
*
10
.
'
1951
r~
v
'
V ' v::'.' -1952
•
,
v
Repurchase Agreements
'
26
.
the
the
even
plete data, table II gives the findings for each year,
unchanged,
elusive
ately
'
.
Treasury Bills Excluding
In
portfolio—repur-i low for the first six months, fairly
agreements, Treasury Bills! high for the next six months. This
inclusive and exclusive of' lack of
consistentcy persisted
repurchase agreements); and total throughout the four
years, and for
government securities
(also - in-i all the selected portfolio items,
'
7
20
was
(both
'
15
:
%
portfolio
unchanged.
moved
ment, obviously, cannot be readily
tested.
and in 3 weeks the yields on Bills
t were
chase
■
^
'
'
1953
.
■
'
.1
decline
a
Federal Reserve
11
'
i
Repurchase Agreements v
.-
7
'24
V
follow
of the portfolio
size
decline in
10
27
-
would
intervention
have
(or down) could such reactions
be rationalized, but such a state¬
Of tests atthe influence of
together in 13 weeks, op- Federal Reserve activity on the
a rise in the
portfolio).
I posite in 8, while in 4 either
yields volatility of the Bill market. Here
To investigate these two possi-i or securities
held remained un- the same selected portfolio items
bilities a
simple sign test was - changed. That is, within the same —repurchase
agreements, BilJ,
used. The significant items of the >
year the extent of agreement was
holding, (inclusive and exclusive
the
in
8
'
.
the I-rate
would
up
ments) moved opposite to the im-
.
■
•
System's
1?
•
Repurchase Agreements
■
1951
♦Agreement:
fell.
No
We
Both
Change:
NOTE:
are
•
rose
Either
Only 51
24
18
15
19
12
8
33
both
or
or
31
12
1953
.
12
16
1954
>
8
1952
•
both
fell.
Opposite:
were
tne
sawe
One
as
while
rose
tne
other
the
preceding
week.
pairs for 1951.
available
to
discuss
at
your
convenience:
LEHMAN
Common Stocks
•
Preferred Stocks
•
State and
l
Municipal, Railroad, Industrial,
Public Utility and Canadian Bands
We
act
as
underwriters, dealers and brokers'
'
f
s
*
V
<
*
in these issues.
Kidder, Peabody^ Co.
FOUNDED
1865
JMembers T^eto "York and cAmerican Slock
17 Wall Street
Boston
Chicago
•
Exchanges
'•
New York 5, N.. Y.
Philadelphia
San
Francisco
>
" *
BROTHERS
i
16
The Commercial and Financial Chronicle
(272)
other side of the coin.
panies which
Those
com¬
hurt in
were
1954
Texcrete Structural
Offering Underwritten
show
sharply higher overall un¬
derwriting earnings in 1955. A
poor 1954 report may therefore be
By SHELBY CULLOM DAVIS
This Week
earnings compared with 1953. This
will not be true of casualty com¬
to report its annual re¬
panies. St. Paul's casualty subsid¬
iary illustrates the trend clearly,
Paul
St.
company
or
sults and this year was no excep¬
The
tion.
report
is
good
a
$3,897,000 versus $2,933,000 a year
rise of 34% before taxes.
Other companies are expected to
announce
similar results.
ago,
lion, the worst hurricane year in
history, St. Paul's total adjusted
earnings
work
common
share
$3.06
a
come
rose
or
to
5%
$2.01
More
or
those
in¬
share.
per
in
came
detailed
influences
been the
dominating
$33.72
have
the breakdown between insurance
least
and investment
underwritten
in
the
The
end
begin
will
reports
the
insurance
of
avalanche
It is
month.
the
of
to¬
that few fire
or
multipline
companies
will
have reports superior to that of
believed,
St. Paul
ricanes
however,
and, because of the hur¬
many
will
reduced
show
to
up
of
the
on
the
now, have not
in
the sense
been
that
companies have
accompanying table.
company
ward
operations, appear
abnormal
Hurricanes, at
Seaboard.
Eastern
in
the
Seaboard as
avoided
Eastern
Demage result¬
belt.
hurricane
has
viewed
been
ing
therefrom
as
"act of God" and the compa¬
a
themselves
nies
are
inclined
credit favorable hurriance experi¬
ence
to good luck than good
more
1955
management.
may
1953
1954
Consolidated—
the
see
Change %
$109,206,194 $106,933,190
106,668,000
106,158,670
premiums earned
8,570,630
5,041,713
Statutory underwriting profit-.
44,232
Est. equity unern. prem. res
1,132,787
2.1%
Net premiums written
Net
to
0.5
—
—
investment
Net
Federal
income
—
taxes
—
Total adjusted
Net asset
or
earnings
liquidating value..
continue
rates
to
in the fire field,
6,427,280
2,949,717
9,652,063
125,317,476
subscribe
5.9
-39.7
stock¬
Dec.
on
Industries, Inc.,
10, 1954, the right
or before Jan. 27,
cents)
10
(par
the basis of
on
for
each
$3
at
share held (with an oversubscrip¬
the general level tion privilege).
The offering is
fire losses being off underwritten by a group of under¬
4% for the first 11 months and
writers,
headed
by
Rauscher,
9.4% in November. Auto physi¬ Pierce & Co. of
Dallas, Tex., and
cal damage (fire, theft, collision)
Russ
&
Co.
of
San
Antonio,
has been unusually profitable for
Tex., who will reoffer any unsub¬
with
some
rate
and
years
cuts
appear
scribed stock at
hold rate cuts and
appear to
petition
There is
in
com¬
share.
Texcrete is engaged in the pro¬
within moderate levels.
necessity for a "cycle"
damage,
whether physi¬
liability or property
outlook
favorable
ualty
for
blows
1955
both
for
companies
wind
fire
appears
and
again.
cas¬
the
unless
big
fact if the
In
law of averages is not "repealed"
a
normal
send lire
tipline
hurricane
should
year
(in particular) and mul¬
(in
underwriting
part)
profits higher.
at
Thus the outlook
beginning
structural
applied to such corporate
the
as
sary
The
board
of
ble
directors
When
will
of
Woodruff
ferent from that of mid-1954 when
11%
underwriting
average
profit in the first half made it
that
peak
and
profits had
ensteiner
16.1
were
is
bound
that
1955
1956
and
rising
lower.
be
to
underwriting
And
it
profits
most
traditionally
exhilarating
company
OUR YEAREND
have
today
proved
insurance
to
an
ATLANTA,
Blackstone
was
stockholders.
Lester
—
J.
affiliated
now
Clement A. Evans & Co.,
First National Bank Build¬
ing, members of the Midwest
Exchange.
se¬
36%
Ga.
is
Inc.,
Stock
new
Jr.
With
possi¬
REPORT
OF
CONDITION
OF
of
Colonial Trust
Company
option to purchase
$3.50
Vinton
of
per
of
Stevens
counsel,
at
his
after
50.
home,
illness.
-
20,
Y.,
N.
Reserve
business
accordance
member of
a
System,
December
on
with
at
31,
call
a
the
1954,
the
close
of
published
made
by
the
Superintendent of Banks pursuant to the
provisions of the Banking Law of the State
of
New
York,
and the Federal Reserve
a
Bank
of
visions
&
this
district
pursuant to the pro¬
the Federal
of
Reserve
Act.
ASSETS
died
191 (Brayton
brief
a
York
New
Federal
share.
Lawrence, Jr.,
Scudder,
investment
Street,
Bred-
affiliated
the
Cash,
which
become
With Clement A. Evans
Frank V. Lawrence, Jr.
Clark,
Neb.—Kay L.
has
In addition, Texas In¬
two years at
Frank
Inc.,
Eisele, Axtell & RedelfSj
Inc;, First National Bank Build¬
ing.
;
•••'•
v
additional 200,000 shares with¬
partner
Co.,
with
1.4
-
connected
&
to The Financial Chronicle)
OMAHA,
ap¬
'
become
Merritt
With Eisele Axtell
in
been
Chronicle)
Mo. —Thomas
Building.
(Special
outstanding stock of the
company.
is dif¬
1955
Financial
has
King
sold, Texas Industries
approximately
own
the then
all of the
Kinnard
King Merritt
The
to
Walsh
with
expenditures for additional fa¬
are
G.
(Special to The Financial Chronicle)
in
company contemplates
curities
affiliated
purposes
desirable in the business.
or
cilities.
an
reached
L.
general funds of the company and
dustries has
the
pear
of, monolithic
John
SPRINGFIELD,
future may determine to be neces¬
damage.
The
Joins
per
concrete products.
Proceeds from
its financing will be added to the
Arthur M.
become
with
(Special
no
auto insurance,
cal
duction
$3.50
Chronicle)
-:
& Co.
per
fire rates,
has
sociated
Industries
Texas
Financial
Smith, La Hue & Co., Pipneer
Building. In the past he was as¬
Texcrete
one
The
with
1955 for 350,779 shares of Texcrete
stock
in
-28.3
Products
common
to
.PAUL, -Minn.
Carlson
Texas
to
the straight fire but share
physical damage. And yet share
kept pace
of
an
8,614,862
6,067,634
4,889,697
9,792,799
107,904,000
6,174,500
Adjusted underwriting earnings
of
,S.
thus far fire losses have more than
scrupulously
a
offering to
record
only in
in auto
Structural
of
read justified. The steadily increasing
The car population and demand for all
both kinds of auto insurance would
particularly
hurricanes,
figures, showing
Meanwhile
is
holders
buy
be
magnitude
and
number
16%.
up
Co.
sell.
trend downward
not
to
Texcrete
great deal of caution.
a
years
mul¬
and
must
companies
tipline
2%.
for fire
1953,
of
reports, as
1954
whole
the
with
asset
net
liquidating value from
$39.16
On
with
advanced
writings
a
per
Investment
to
boost
real
$3.02
to
contrasted
ago.
year
Premium
The
out
profits of
underwriting
statutory
one.
Despite the hurricanes whose toll
now bids fair to
reach $300 mil¬
invitation
an
rather than
Fire &
casualty
Traditionally
Marine is the first fire
of
more
Insurance Stocks
—
Smith, La Hue Adds
.
:
(Special
under more normal wind¬
storm experience and higher rates,
may,
Bank and Insurance Stocks
Thursday, January 20,^955
'
c
He
balances
banking
eluding
with
other
institutions,
in-
reserve
balances,
cash items in. process
and
of collection
..
United
.$ 16,634*686.92
States
Government
obligations, direct—.
COMPARISON & ANALYSIS of
18,152,095.37
of " States
Obligations
and
'
political
Other
16 New York
City
-
Loans
and. discounts.. .(in-
$7,192.69
eluding
fixtures
request
liability
AMERICAN
120.
,
8,348.38
SCHIRMER, ATHERTON
50 Congress
TIFFT
1387 Main
WIRE
&
CONNECTIONS
Members oj Hew York and Boston Stock Exchanges
American Stock Isxchange (.Associate) <■
-
& CO.
50 CONGRESS
WOODCOCK, HESS A
BROTHERS
St., Springfield, Mass.
133 S. Froad
COL, INC.
Fall River
Milford
Winchester
Manchester, N. H.
St., Philadelphia, Pa.
650 South
DU
POVT
BUILDING
44
WILMINGTON, DEL.
WHITNEY
AVE.
corpo¬
1,875,303.55
-———
United
of
States
Government
922,836.69
.
and
States
of
po-
1,026;965.31
subdivisions
liticai
Deposits of banking .institu-
v
tions
LINCOLN LIBERTY BLDG.
NEW HAVEN, CONN.
and
rations
Deposits
•
*
Spring St., Los Angeles, Calif.
$46,297,856.82
individuals,
partnerships,
Deposits
MITCHUM, JONES & TEMPLETON
and
corporations
STREET, BOSTON 2, MASSACHUSETTS
Lowell
partnerships,
Time deposits of
'49 Pearl St., Hartford, Conn.
St., Boston, Mass.
$65,318,634.55
deposits of individ¬
uals,
TO
SCHIRMER, ATHERTON
CO.
[
__
LIABILITIES
.
Demand
Bell Teletype NY 1-1248-49
-
DIRECT
380,284.-49
.
-TOTAJL ASSETS!
EXCHANGE
BROADWAY, NEW YORK 5, ' N. Y.
Telephone BArclay 7-3500
this
to
,
I
STOCK EXCHANGE
STOCK
274,190.26
acceptances
on
Other assets
:
.
.
$190,365.62
Customers'
Laird, Bissell & Meeds
-
•
25,084,359.31
"
premises
owned,
$83,824.64, furniture and
institution
NEW .YORK
»
drafts)
outstanding
MEMBERS:
over-
Banking
J
on
2,684,231.96
bonds, notes, and de-
bentures _——1,422,437.86
Federal Reserve Bank, stock_*
v.
'78,000.60
,
Bank Stocks
Will, be sent
subdivisions——
Other
PHILADELPHIA, PA.
9,662,089.83
deposits (certified and
officers'
1,066,029.61
checks, etc.)
TOTAL
DEPOSITS $60,851,081.81
PRIMARY
<(/*////////////////////////////////////////////////////////////////////////////////////////////////////////////////>,
MARKETS
executed
Acceptances
by
or
.
for account of this institution
STOCKS
TOTAL LIABILITIES
Mead, Miller
&
Co.
-1
Capital t
&
—Members—
CO., NEW YORK
Surplus
fund
Undivided
Reserves
New York Stock
American Stock
Exchange
for
1,600,000.00
•
(and retirement
CAPITAL
'
.
STOCKS
CAPITAL ACCOUNTS
institution's
$1,200,000.00
tures;
J. B. MAGUIRE &
31
Milk
CO., INC.
Street, Boston 9, Massachusetts
T elephones
Bell
New York—WHitehall 3-4000
Teletype—BA 270
and
$65,318,634.55
__
capital
consists
of
capital notes and deben¬
stock with total par
of
common
value
of
Assets
pledged
$1,000,000.00.
MEMORANDA
or
assigned to
liabilites
Secure
other purposes
BALTIMORE 1, MD.
Baltimore—LExington 9-0210
$3,978,631.05
TOTAL LIABILITIES AND
tThis
Charles and Chase Sts.
88,240.00
AC¬
COUNTS
INSURANCE
90,391.55
•
ac¬
preferred capital),
TOTAL
BANK and
$2,200,000.00
_l
profits
count for
Exchange (Associate)
Philadelphia-Baltimore Stock Exchange
ACCOUNTS
CAPITAL
CORRESPONDENT
A. M. KIDDER
(not
including
subordinated
obligations shown below) $61,340,003.00
NEW ENGLAND SECURITIES
BOSTON
•
51,878.49
437,042.70
outstanding—;—
liabilities
Other
UTILITY and INDUSTRIAL
and
and
for
$2,476,430.46
__
I, Frank A. Hayes, Asst. Treasurer of the
Open-end Telephone Wire to New York
New York—CAnal 6-1613
that
best
Bell System
Teletype—BS-142
Boston—HUbbard 2-5600
Providence, R. I.—Enterprise 2904
above-named
Portland, Maine——Enterprise 2904
Hartford, Conn.—Enterprise 6800
the
of
institution,
above
my
statement
knowledge
and
hereby
certify
is
to
true
the
belief.
FRANK A.
HAYES.
Correct—Attest:
FRANK
E.
F.
S.
BEEBE
KINKEAD
JAMES S.
1
^Directors
CARSON I
,
-Number 3396
Volume 181
:
.
The Commercial and Financial Chronicle
.
17
(273)
\
dolph W. Stewart
er
NEW
OFFICERS, ETC.
Bankers
and
member
The
of
CAPITALIZATIONS
New York
Chase
The
Chairman
National
Bank
of
the
of
also contemplated that Edward
David
Baker, Chairman
are
Manhattan
the
of the
Bank of
Company, of New
York, announced on Jan. 14 that
the respective Boards of Directors
the
of
institutions
two
in
are
agreement on basic terms to merge
the two institutions, subject to the
of the
approval
thorities
the
the
and
respective
plan
is to
shareholders
Manhattan
functions
institutions
the
under
which
1799.
Based
con¬
two
of
Com¬
originally issued
was
by the New York
Legislature in
the Dec. 31,
on
of the
continuing
Midland
Marine
of
It
York
New
George
was
C.
elected
was
1954
on
rector
19
Iron
elected
of
have
consummation
On
total
two
the
combined
The
terms
would
the
of
continuing
institution
share of capital stock
held by
in
114
capital stock of the
the
them, and the stockhold¬
the
merger.
the
merger
taking
approximate
$500
that
of
The
combined
would
continue
member
to
the
of
than
bank
over
other.
the
joinder
a
rather
one
by
a
the
institution
operate
Federal
as
stock
of
the combined
would be "The Chase
and
Bank"
its
first
institution
Manhattan
Board
Di¬
of
rectors will consist of 15 members
of the Board of Directors of Chase
and
members
10
of the
Board
of
It
is contemplated
McCloy,
of
as
that John J.
Chairman of the Board
Directors of the combined
in¬
stitution, and J. Stewart Baker,
of the
Chairman
Executive
mittee and President, will
chief executive officers.
Ebbott,
President
agreed
to
Chairman
of
continue
of the
as
Com¬
be the
Percy J.
Chase,
as
a
combined
has
Viceinsti¬
he has reached
retirement £ge, in order that the
continuing institution may have
tution,
the
although
benefit of his
knowledge and
experience in the integration and
administration
the two banks.
of
the
busines
It is likewise
of
continue in that position and that
President
come an
Marshall, who is
of Manhattan,
now
be
to
It is
7.4
now
are
Bank
cording to
an
of
has
the
New
been
Iiarlem
York,
ac¬
announcement made
Continued
on
page
109
Manhattan
of
It is the
CORPORATE BONDS
REVENUE AND MUNICIPAL BONDS
$ 5,000,000
pres¬
$ 55,000,000
City & County of San Francisco, Calif.
6% Various Purpose
N.E.
43,250,000
233,000,000
outstanding after the
3K% Dels., 1/15/79
50,000,000
Commonwealth Edison
Commonwealth of Pennsylvania
20,000,000
Food Fair Stores, Inc.
160,000,000
city, with 37 offices in the
Borough of Manhattan, 35 in the
Borough of Queens, nine
in
Brooklyn, and six in the Bronx.
There is no problem of overlap¬
the
in
locations
branch
the
two
in
banks
the
India
basis
which
reflect
would
3x8%, 1/1/84
27,200,000
75,000,000
2,000,000
New York State Thruway Authority
20,000,000
8,000,000
State Loan & Finance Corp.
3%% Deb., 5/1/66
5% Gonv. Deb., 9/15/69
125,000,000
Tennessee Gas Transmission
65,000,00.0
Tennessee Qas Transmission
17,000,000
3.20%, 1/1/95
Texas Eastern Trans. Corp.
1st
in
positions the concept of the
merger
the two
as
4K% Debs., 9/1/74
180,000,000
State of Maryland
Bridge & Tunnel Rev. Serials k Terms
banks.
*
George A.
State
Rev. & M. K. Tax Bonds
joinder of forces of
a
*
*
,
Stare Institution Bonds
Mooney, New York
Banks,
Superintendent of
4H%, Debs., 3/1/74
State of South Carolina
9,200,000
,
200,000,000
4/1/55-74
State of Virginia
95,000,000
...
12,000,000
3% Toll Rev., Series 1954, 9/1/94
37,000,000
State of West Virginia
Specialists in
10,000,000
CORPORATE STOCKS
*
.* 160,000 Shs.—American Electronics, Inc.
Foreign Securities
'
*
"
s
*
3nc.
INVESTMENT
ASSOCIATE
MEMBER
-
r
600 Convertible Preferred Stock
managed
STOCK
Common Stock
-
Members: New York Stock Exchange,
American Stock Exchange
EXCHANGE
York 4, N. Y.
Telephone
Teletype
WHitehall 3-9200
NY 1-515
...
1
.
■
30 Broad Street, New
300,000 Shs.—Temco Aircraft Corporation
Van Alstyne, Noel & Co.
SECURITIES
AMERICAN
*
.
Common Stock
$4.11 Cumulative Preferred
200,000 Shs.—Goebel Brewing Co.
we
s
.
200,000 Shs.—Northern States Power Company
*
which
.
200,000 Shs.—Mexican Gulf Sulphur Company
-
500,000 Shs.—Continental Uranium, Inc.
,
*
:
Common. Stock
.
Common Stock
*
Winn & Lovett Grocerv
Common Stock
,.
80,000 Shs.—Continental Commercial Corporation
600 Convertible Preferred Stock
Foreign Investments
,
1,000,000 Shs.—International Harvester Co.
679,436 Shs.— Consumers Power Company
*
.
Mtg. 3% "P", 4/1/84
250,000 Shs.—Guild Films, Inc.
•
;
Common Stock
West Pcnn Power Co.
3k%, S. F. Debs., 4/1/74
'
Common Stock
United States Steel Corporation
Serial Debs., 8/1/55-64
1st
4)4%, Tpke. Rev., 12/1/89
$1uphold and£P. wlcwJitecdel
Mtg. 3)4%, 2/1/75
State of Connecticut Expressway
100,000,000
.
,
State Loan & Finance Corp.
Power Authority of the State of New York
Rev.
Mtg, 3)/s%, 2/1/74
8,000,000
Gen. Rev. "A" 7/1/94
335,000*000
Southern Natural Gas
1st
1/1/64-79
New York State Thruway Authority
225,000,000
Scrvomechanisms, Inc.
5% Con v. Deb. due 12/1/66
3%, Second Series, 7/1/88
Gen. Rev. "A"
Pressed Steel Car Co., Inc.
4)4%, Sub. Conv. Debs., 10/1/69
*
New Jersey Turnpike Authority
of directorship and manage¬
ment
Public Service Co. of Indiana
Mtg. 3)4%, 1/1/84
3)4%, 8/1/84
3/4% Tpke. Rev. (1950 Issue), 1/1/85
plans for
McCloy and
Baker emphasized their purpose
to unite the two banks solidly on
terms
25,000,000
Mtg. "C", 3h%, 12/1/84
1st
New Jersey Turnpike Authority
Messrs.
merger,
Pacific Power & Light Co.
New Housing Authority Bonds
75,100,000
their
confirming
In
30,000,000
5,300,000
banon.
the
Ohio Edison
1st
3.30% Tpke. Rev. 5/1/94
19,510,000
Mtg. 3H%, 9/15/89
30,000,000
Massachusetts Turnpike Authority
Le¬
and
1st
The Kansas City Southern Rwy. Co.
Mackinac Bridge Authority, Michigan,
239,000,000
Mtg. 3%, 3/1/89
-
50,000,000
4% Bridge Rev., 1/1/94
to
Italy,
Argentina,
•
Los Angeles City High School District
79,800,000
of
Illinois Central Railroad
1st
2)4%, "C" 7/1/55-79
the continuing
bank,
in addition to its local
branches, its 17 branches in Eng¬
land,
France,
Germany, Japan,
Cubd, Puerto Rico, Panama and
the Canal Zone, and its five rep¬
resentatives'
offices
in
Mexico,
bring
60,000,000
2)4% "C" 7/1/55-79
20,000,000
oughs where they operate. Chase,
prominently identified in com¬
mercial and world-wide banking,
would
'
.
Houston Lighting & Power
Los Angeles City School District
bor¬
four
30,000,000
Kansas Turnpike Authority
10,000,000
General Motors Acceptance Corp.
2M% 10-Yr., 3% 15-Yr. Debs.
County Rev. 11/1/60-83
3%%, 10/1/94
the business and residential areas
Mtg. 3%, 5/1/84
3? 8% S.F. Debs., 9/1/74
150,000,000
Florida State Improvement Comm.,
Broward
fices, which will effectively cover
of the
1st
city-wide system of 87 of¬
a
The Atlantic Refining Co.
City of Philadelphia, Pa.
Various Purposes 1/1—7/.1/55-80
Penna.Tpke. Rev. 3.10%, Series of 1954
6,000,000
will be¬
Executive Vice-President
of the continuing institution.
,
Savings
of
Trustee
-J))'/
The combined institution would
a
Lawrence C.
a
to
merger.
con¬
templated that Graham B. Blaine,
Vice-Chairman of Manhattan, will
shares
prior
expectation that the combined
ping
Directors of Manhattan.
There
outstanding.
stock
a
De¬
The
by them
earnings will enable the enlarged
bank to pay dividends at the an¬
nual rate of $2.20 per share on
Reserve
System and of the Federal
posit Insurance Corporation.
held
million
2.75
have
name
elected
si:
Morehead
Gould
million shares of Chase stock and
of
banks
❖
v
R.
com¬
which we fiarUci/ialed
of Manhattan will continue to
ers
stock
emphasized
two
other
for each
of Chase
ital
would result in
merger
of
Oberlancier to Assistant Treasurer.
di¬
a
mancin
ing effective, the stockholders of
Chase will become holders of
shares
ent
was
Board
derson,
provide
on
re¬
million.
It
sistant
Liberty Products Corp. Announce¬
also announced that James
As¬
institution.
agreed
billion.
it is contemplated that the capital
funds
Ernest Hanel to
Vice-President; Aksel An¬
Harry Baechtold, Walter
Graf, Kenneth Jones, and Martin
Textor is
numerous
F.
Vice-President; Roy
Greer and
banks will continue with
the
$7.5
of
excess
bank's
Charles
James
and
S.
Corp., Foremost Dairies, Inc.,
Bosch Arma Corp., and
hold the number of shares of cap¬
would
the
Mr.
Secretary;
he
1952,
17,
and
Mansfield
Schneider to
American
Presidlent.
as
G.
plated that all other personnel of
published figures the enlarged in¬
in
F.
panies including Colorado Fuel &
Company
Jan.
fol¬
the
James
It is further contem¬
stitution
sources
Mr.
1955.
year
Jan.
to
of Directors.
Trust
Textor
On
ing institution will have outstand¬
ing 12 million shares of common
stock.
Upon the merger becom¬
Na¬
charter
the Bank of the Manhattan
pany
Vice-Presidents
institution.
Executive
become
President.
Directors of The
Board of
The
of
President
%
*
made
promotions.
Baldwin, Vice-President to Vice-
the
for
that upon the merger the continu¬
the
of
of
Vice-Presidents
will
of
the Chase
Company and to
the
Senior
The
the Bank of the
into
and
Rockefeller, who at present
Chase,
au¬
institutions.
merge
tional Bank
tinue
appropriate
Champion
George
Love,
City of New York, and J. Stewart
L.
also
was
Officer
City and attended New
*
McCloy,
elected Chairman
was
of the Board and Chief Executive
form¬
York
New
lowing
University.
York
J.
John
a
ment
1927,
having served on that Textor, the new President, has
newspapers
from 1929 to 1949. spent his entire business career
Since then, he has specialized in with the bank, having started Jan.
He became an oficer in
financial, industrial and banking 2, 1916.
public relations. He was born in 1927, and in 1950, Executive Vice-
BRANCHES
REVISED
his Executive
"Times,"
CONSOLIDATIONS
NEW
as
Mr. Stewart is
Assistant.
News About Banks
G. Blaine, who has been President
since
the appointment of Ru¬
announces
52 WALL STREET,
NEW YORK 5
Philadelphia Office: Western Saving Fund Building, Broad & Chestnut
Streets
.
18
The Commercial and Financial Chronicle
(274)
:
«
-
■
'
•
1
'
•
Thursday, January. 20, 1955
.
{
.
•
_
have
sponsored
such a contract secure against the peaks and val¬
they done so they would leys of our economy.
Y
flip flops when the
Well, I own my home in Mary¬
agitation began.
v
'
y
land just outside of Washington
Mr.
Eisenhower has not only but it is not necessarily mine for
but had
,
From
of the
t-
fast, and the indications are
that
his
he
annual
in
win
will
budget
kick
decided
By CARLISLE BARGERON
the end,
the
in
ity I will get to
a
He
pants.
bill by Senator Kerr of
parent that in Mr. Eisenhower we Oklahoma, to exempt natural gas
have a man in the White House production, not distribution, from
He and Tru¬
who is less susceptible to propa- Federal regulation.
becoming increasingly ap¬ passed
g a n d a
or
whipped
man
up
was
the
propagandists set up an
clamor, that it meant in¬
awful
costs
creased
in-
habitant.
tural
Roosevelt
the
consumer
Great
in¬
disputably
man
of
but
his
larity
renewed fervor
V:'.'
':
•
.
lobby, just about the most voci¬
ferous in this country.
Whether
the
alleged
shortage
of
grade
school facilities is a national prob¬
is
I don't know,
lem,
but the Edu¬
Federal
the
the
Power
President
Oceta
Eisenhower
Culp "Hobby
Federal
to
and
his
Government
the
schools with a tremendous out¬
regulated the industry or not pouring of Federal money. I don't
know just exactly why,
except
and the Commission- sidesteppedthat Mrs. Hobby is a woman and
it.
Everybody was satisfied, the
due
Carlisle Bargeron
facility
Public
are
for
increase
theory of
food,
clothing
to
seems
ilies
and
the
here
out
more
-children
more
for
cost
down,
not
in the
100%
But
up.
last
outlet
for
their
talents
and
Mr.
A big
Long was a thorn in his flesh and had to accept jurisdiction.
•Eisenhower being a world minded
kept him on the jump trying to fight at this session will be over
man is supposed to have a broad,
keep abreast with Huey's slogan the efforts to pass another bill
high level view on matters of this
"Every Man a King."
Social se¬ similar to the one Truman vetoed.
kind.
The lobby's disappointment
curity came out of Dr. Townsend's
Certainly neither Roosevelt nor
at not finding a one or two billion
agitation that every old man be Truman would have stood
up
dollar
item
in
the
budget for
given $200 a month.
against the agitation around the schools
is keen.
In fact, accom¬
One episode will serve to show Dixon-Yates contract to build a
panying publication of the budget
Harry Truman's weakness in the power plant on the periphery of was a lot of
handwriting by "lib¬
face of popular clamor.
Congress the TV A. Of course, neither would
eral"
columnists
You will
tors.
and
see a
commenta¬
lot
more
with
It
moving
schools for
it goes—
up
10 years.
CHICAGO, 111.—Albert H. Klee,
John J.
Weiss, Jr., and Morey D.
have joined Arthur M.
Sachnoff
Krensky
&
Jackson
Co.,
Inc., 141 West
members of
Boulevard,
M.
Arthur
Weiss
has
been
in
Vice-President
named
charge of national
Mr.
Krensky
sales.
also
the promotion of H.
announced
B. Shaine of
the firm's Grand Rapids, Michigan,
office
the
to
position
of
Vice-
Boston Stock
American Slock Exchange
Midwest Slock Exchange
Exchange
noff
with the brokerage firm of Straus,
pears now
-But it ap¬
that he didn't
mean
Federal Government should go in
for school construction, but should
some
sort
of
Underwriters and Distributors
of
me
on
MUNICIPAL
my
been
told
to
formerly
the
State
and Sach¬
associated
oi
Cuicago
for many years.
a
problem
level.
Ever
my home, then noth¬
ing could disturb me. I would be
the
credit
BOSTON
NEW YORK
•
•
CHICAGO
•
☆
(Special
to The Financial
discussion of 1955 prospects and
diversified stock issues
has
become
of
over
like
10%, based
a
free copy,
on
85
returning from under 2%
of
Chicago. Mr. Pullen was formerly
Evansville representative for the
Marshall Company and prior
theerto was for many years with
the Chicago Title & Trust Co.
you
Hornblower
*Mfdlow»; 400 Madison Ave.,
a
Weeks
5, N. Y.
at 47th St.
(17)
Dl 4-6600
PL 1-1900
*Open Thursdays until 9 PM
Members Principal Stock and Commodity
Exchanges
MEW YORK
PHILADELPHIA
PEORIA
CHICAGO
PROVIDENCE
ROCKFORO
would
just ask for Letter CF 31.
40 Wall Street, New York
BOSTON
&
DETROIT
PORTLANO
CLEVELAND
BANGOR
.
CHARLOTTE
.
new
con¬
steam generat¬
The
initial
unit
will
turbo-generator with a
net capacity of 135,000 kw.
Cost
of the plant with the initial unit
estimated
at
of
expended
$29,350,000
$13,900,000
through 1954.
Dec.
was *
1, 1959.
Giving effect to this financing,
including payment of revolving
credit notes,
the company will
have
outstanding 310,000 shares
of $100 par value preferred stock
in three series, 5,160,125 of com¬
mon
stock of $5 par value and
$62,125,000 of funded debt.
Toledo Edison provides electric
in
a
territory in north
service
western Ohio
covering about 2,500
miles, including Metropoli¬
tan Toledo. Population of the area
is
around
564,000.
For the 12
square
ended
Nov. 30, 1954 the
reported operating rev¬
of
$34,445,905 and net in¬
of $5,753,071, equal
after
preferred dividends, to $1.02 per
come
share
on
Established 1922
NEW YORK
the
Y
common.
The company has paid dividends
on
the
common
since
1922.
have
been
stock
Since
1950
each
year
dividends
paid quarterly at the
share.
annual rate of 70 cents per
Company
to
1954 dividends. If
which
1957
The
one
WORCESTER
on
a
Toledo.
be
enues
P.
associated
general
specific data
expenditures
company
Chronicle)
Wis. —Paul
with Carter H. Harrison & Co.
qAllen
a
revolving
ing plant being erected just east
☆
year-end Special Report contains both
of
important items in the
85 Selected Stocks
Our
the
for the period 1955 through
are estimated at
$41,000,000.
The Market Outlook For 1955
☆
of
outstanding in the
amount of $5,270,000. The balance
of proceeds
will be applied to
PAPER
INDIANAPOLIS
•
*
will apply
sale in part
notes
SECURITIES
COMMERCIAL
Yr
payment
months
Joins Carter Harrison
research
a
young manhood I have
that the thing to do
own
were
Blosser and Mcuoweii
Pullen
since
was
Klee, Weiss
EVANSVILLE,
Schools have become
to
Messrs.
the
agency.
AND
ap¬
he said he recognized the need for
establish
CORPORATE
has been
registered representa¬
in the Grand Rapids office.
a
tive
their school problems.
MEMBERS
New York Slock Exchange
Silverstein
had succumbed to the lobby in his
State of the Union message when
as
un¬
was
pointed
the states in
was
by
Krensky,
President.
iY
appointed Sales
The new preferred stock is sub¬
Manager of the Chicago office ject to redemption at $104.25 per
succeeding Alfred J. Betar, who share if redeemed on or prior to
Mr.
Edward
among
Co.
company
proceeds
to
is
by
^
"catalyst"
Edison
which
announced
President in charge of that office.
a
the
Exchanges, it
was
value,
par
1, 1954.
The'utility
the New York and Midwest Stock
the Federal Government to act
1879
Dec.
struction is
Frankly, I thought the President
ESTABLISHED
Toledo
100,000
cumulative
$100
yesterday (Jan. 19)
most
Join Arthur Krensky
joining in.
F. S. MOSELEY & CO.
The
made
stock,
construction
Klee, Weiss, Sachnofi
the "liberal" members of Congress
;
of
and
4.25%
new
preferred
fam¬
,
Power
of
share and accrued dividends from
Y
whatnot.
and
that with
me
stock
common
shares
production
mass
costs—in
school
my
-Y
lowered
Public offering of 400,000 shares
of
automobiles,
in
taxes.
The
Bankers Offer Toledo j
Edison Pfd. & Com.!
derwriting groups headed jointly
by The First Boston Corp. and
Collin, Norton & Co. The common
stock is priced at $14.25 per share
and
the preferred
at $100 per
the
move
into
propagandists and nearly all of our outstanding and
the natural gas producers.
in bending to
Some¬ energetic women find that joining
in the chorus about the inade¬
every wind that blew up from the time ago, however, the Supreme
quacy of schools affords a good
hinterlands.
The demagog Huey Court ruled that the Commission
to
of these taxes
the individual taxpayer should go
lobby is.
\lt had been counting strongly
on
the taxes on
The
steady
a
cation
pay
population in our
county has been steadily increas¬
ing for years and with it has been
What
really
surprises
me,
though, is that his budget reveals
he is still resisting the Education
it
popu¬
was
Truman vetoed
got the word that
didn't really care whether
Truman
lot
a
states
Commission
a
"strong"
very
of several
joined
in
the
now.
it and 80%
schools.
-u Governors
Then
bill.
a
and
leader
gas.
the users of na¬
to
propaganda,
was
Tru¬
lic Power
of
oldest
that
bill.
for the
Immediately it passed, the Pub¬
the
memory
indication
every
was
There
friends.
close
were
man
agitation than
any President
within
a
his neck with
on
I have still got to have an
income beyond what social secur¬
but
TVA
gave
keeps.
will have the Public Power crowd
It is
-
turned
stood
Washington
Ahead
a
have
Number 5396
Volume 181
.
.
.
The Commercial and Financial Chronicle
(275)
CONVERTIBILITY—
to facilitate; and
encourage;
Eisenhower's Foreign Trade Policy
—A Move in the
Administration's
the
foreign
policy
request
-
enact
the
to
to
carry
ministration's
.
•
to
*•
.economic
policy..
it
is
democracy,
our
Since
deep
t's
e n
two
.program in:
Ithis field is
iw
r
m
a
as
can
.the
in
,
which
.should
.1
a
we
move,
v e r
m
opportunity
The
y
'
debate
took
discuss it with
years
the
of
you.
and
study
been
clear
as
public
national
the
or.
as
interest
our
of
now
us
a
but
in
—
in
is
;us
—
in
inter¬
recognized
foreign trade.
the
private
few exporters and
is rather
our
Most
know that international
not
an
work
of-
V)ua?nP<3C'r>~"T^
individually
stake
•trade
?of
of
many
sumers
preserve
importers,
important factor
national economic life with
important effects on our material
well being. As retailers, the goods
«on your shelves testify to the con¬
tribution which imports make to
business and to the unparalleled
;wide choice which American con¬
sumers
have.
i
altogether fitting that
:
It
is
debate
It
great tragedy
a
the
left
President,
President's
the
that
should
developed through the
bipartisan Randall Commission to
was
which he gave just this one in¬
struction—"Above
all," he said,
"I urge you to follow one guiding
under¬
keener
a
remember
policv
'We
interest.
.
principle. What is best in the
is
tional
interest."
the
It is also
its
simplest terms,
has
;and thoroughly debated.
the
open
Our po-
v*An address by Sec'y
the National Retail Dry
Anderson before
Goods Associa¬
tion, New York City, Jan. 13, 1955.
so
effec¬
believe
we
competition
to
so
firmly
that
we
well
as
competition at
we
do
to
our
velopment
part
of
such
throughout the
work
we
towards
with
an
towards
world?
initiative
Will
investment
and
private
Eisenhower's
and constructive
policy
to
as
the
foreign
broad
economic
we
wish
answers
to
,
tions
we
i
of
the
clear.
sure
There
with
their
earn
the form of slowly
ports.
■
Thus the
ministration
President
meet
These
we
as
with
clear
if
we
are
should
to have
interest.
The program recommended by
the President to carry us forward
towards
these
goals
should
simi¬
larly
receive the full support of
overwhelming majority of our
citizens if they are given the op¬
portunity to understand k it well.
the
The
The
Tariff
dent's
tariff
Phase
of
the
of
the
are
Administration's
a
of
Within
objectives.
mmI
"
,
r
State and
*
It
"gradual and selective
our
the
can only be made after
peril
point findings by the Tariff Com¬
mission,
threatens, the reduction
or
withdrawn
the
clause
escape
'
?
*
can
President
'
be-
by
mech¬
;
,
Moreover, except in the case of
the authority to reduce the rates
commodities
of
which
rot
are
being imported or which are being
imported only in negligible vol¬
ume, the reduction can only take
place in return for negotiated con¬
cessions from other countries.
tariffs."
framework
of
a
ward
re--
•
>
a
given
com¬
reduce
lower
a
rates.
We
we
level
must,
trade through
do
tion with
It is
move
of
to-:
tariff
however,
move
lower tariff rates;
not
unwittingly
legitimate domestic
industry, labor
and
so
insure
to
as
agriculture
have
Continued
the
damage
interest
or agriculture
that industry
on
.
our
bal¬
the problems of
gradually and selectively so as to'
make sure that in accomplishing
the desirable goal of inviting more
and
(a) 'to
President's
that
recommended
of
respect to
the
of
The direction is clear.
trade.
quested authority to take any one
of three alternative forms of ac¬
\
by
the
of
use
anism;:
any
modity, either
body.
if a reduction ia
made and if serious injury ensues
Agreements Act, the President
i
independent
an
Furthermore,
we
are
the
over
In all of these cases, the reduc¬
anced approach to
Presi¬
perhaps the
best example of the moderate and
gradual
approach
towards
the
revision
50%
tions
examples
Program
phase
program
embodies
or
These proposals are thus perfect
President's
.
valorem
-
"
adequate
page
2rf
ob¬
that as we fape
world, the direc¬
on
Emergency ..situa¬
require
to
detours
the
must
at the first
return,
be
full
President's
the
buying side
from
-
agreement
general
ap¬
to our foreign economic
relations. V Surely
none
of
us
would
Our interest in
deliberately choose to limit
bidding
of institutional size
4. :
This
*
a
foreign economic policy genuinely
in the national
ad
than
less
three-year period.
agreement.
goals towards which
move
50%
not
by. the
and
than
more
to
general
the
are
must
.announced
are
than 50%.
more
equivalent, to reduce the raie
Ad¬
we
for the
t
is
increasing amounts.
objectives of the
by not
three-year period, or (c)
existing rate
its
All the world wants Amer¬
ican goods in
;
rate
the
increasing im¬
that
f
1945
over
in
payments
that
event
in the event that the
for and
pay
the
proach
IN¬
.
moderate
policies
opportunity to the main road.
t'
wish " to
•
them
can
in
our
.may
make
all these
curtail;
VESTMENT—which
.
let
customers
"time to time, but we must always
set forth in his message
Congress
questions YES. This, his program,
as he pointed
out last, year, con¬
sists of four major parts "AID—
which
of
remain
resources?
■; President
our
policies be stable and
clearly evident. Our policy deci¬
sions may' be changed
in detail
by the march of events, but we
must constantly bear in mind our
objectives and goals. The topog¬
raphy may require that the road
we travel have grades and curves
but
our
general direction must
de¬
to encourage reliance on in¬
so-as
of
President's broad
proper
rest
tion
climate throughout the free world
dividual
is
It
:the
friends abroad
improved
unrequited
day longer than
for which these
one
emergency
(b)
or
jectives.
market
a
free
our
the
series
They are
official
every sub¬
are
designed to move
and
not
too
hastily
towards the
nome./
believe firmly enough in a
freemarket so that we would like
Do
as
about-faces.
ject they
carefully
enough in
are willing
accept competition from abroad
as
are
changes in
On virtually
attitude.
plication of its underlying prin¬
ciples throughout the free world.
Do
<
and directional. These
great
labor
our
of the
commodity is not being imT
ported or is being imported only
in negligible volume to reduce the
of
programs
than 5%
more
the
three-year extension of the Trade
President's
not radical
of
years,
give
-
recommendations
not
fruits
to
Certainly
the, practical
businesslike
ap¬
proach is'to sell abroad as much
na¬
important to remember
that- the
acceptance and ap¬
^
issues be brought out into the
done
as
basic
towards
•
I
this
be
the
Surely none
continue
by not
present rate in each of the three
programs were created.
rapidly
decisions.
clear-cut
indeed
national
policy issue,; is
whether we believe firmly enough
in our free enterprise system to
wide-,
understanding
in
Randall
tively,
has
before
national trade. Never before have
so
representa¬
our
ship. As ,in other-parts of our
foreign policy, we must as citi¬
zens
regardless
of
con¬
party,
about.
Mr.
Administration
Never
before.
there
last
-
Stated
brought the is¬
sues relating to our foreign trade
policy r into sharper focus than
spread
the
standing of what the shouting
have
ever
urge
J
since
office
my
also all have
all
to
two
should
his, Administration, the American
people and the
Congress in
a
fuzzy state of indecision. Indeci¬
sion invites frequent
patchwork
result, of the yeoman service
a
we
Samuel W. Anderson
happy for this
,
obligation
.
the
to
assistance for
scientiously face up to the soulthe inspiring
searching task of' determining the
President and
the
of
of
good
friend
Clarence
Randall, 'we have not only de¬
veloped ah integrated set of mod¬
erate
policy
proposals,
which
move
in the right direction, but
ceived step in
direction
.
debate
Under
years.
of*,
1 1-con-
e
and
leadership
and
.moderate
to give him
maximum support. Above all,
would
if
we
they point. If they
mseii-
the
i d
r e s
I firmly believe they are,
our
towards
i
discussion
P
the direc¬
in
wise
as
is
we
.conviction
-
believe tnem to
we
tives in Congress to move
'
.that
my
our
which
our
hower Administration, 1 am proud
to
have
had
some
part in
the
-
up
only do this if there is substantial, actions which obscure the direc¬
public understanding of the basis tion in which our national interest
for these decisions and of the di¬
lies. V'
•.
.
rection in which we are moving.
V This is not a matter of partisan¬
As
a
member
of
tne
-
.foreign
-
In
sions.
Ad-
his
on
<
and
recom¬
make
in
it
leadership requires
make enduring policy deci¬
to
us
and
the
for
.must
imports.
wants
through
are,
sition of world
legislation to
necessary
him
.enable
Congress
the
action." We
President's
the
sound
be
,
.his
now
and
us
away
the
tion
program
The President has just renewed
But
minds whether
recently submilted to
Congress. Stresses importance of expanded foreign trade in
the national interest. Points out economic progress in the world
requires further development: of the resources of many coun¬
tries, and therefore it is in our interest to encourage flow
of U. S. capital abroad. Explains purposes of the proposed
International Financial Corporation
trade
stated,
been all to
is the time
has
years
mendations
the direction we should
move," Mr. Anderson discusses the motives and objectives of
President's foreign
already
discussion .of. the past
and
study
is
"a modirate and well-conceived step in
the
have
I
As
decision
economic
sion in our
of
debate
rate
moderate
a
ex¬
pand."
good.
Secretary of Commerce
to
wish
we
exports rather than to accept
and gradual
expan¬
our
wisn
we
TRADE—whicn
two
SAMUEL W. ANDERSON*
By
Assistant
Asserting
Right Direction
wmcn
19
*
"
,
as
blocks of securities,
provide primary markets
placement of such investments..
.willingness
well
on
springs from the fact
as
on our
sell
to
buy
part to
high-grade bonds and
preferred stocks in volume is of
Municipal Bonds
utmost
in
mm.
importance
arranging their
to
portfolio
managers
programs.
% mM
Our services
are
available
to
all
financial institutions.
lip
-
i
THE
-
*
fife
"
Inquiries
are
invited
NATIONAL CITY BANK
OF NEW YORK
Municipal Bond Department
Salomon Bros. & Hutzler
Dealers and Underwriters
TELETYPE NY 1-708
55 Wall Street,
New York
of High-Grade Secu rities
Members New York Stock
71 Branches in
Head Office:
SIXTY WALL STREET,
Member Federal Deposit
Exchange
Greater New York
NEW YORK 5, N. Y.
Insurance Corporation
BOSTON
PHILADELPHIA
CLEVELAND
CHICAGO
SAN FRANCISCO
20
(276)
Continued
jrom
page
balance
19
of
Eisenhower's Foreign Trade Policy
—A Move in the Right Direction
have,
which
those
be
may
in
than
less
adjustments
necessary
million
110
1980—25 years
the
As
national interest.
people
President's
And
Program
of
Japan
less
than
The
President's program gives
priority
to
expansion
of
Japan's trading opportunities be¬
cause of Japan's difficult economic
situation
vital
and
because
importance
of
of
Japan's
know,
is
an
of
California.
to
mile of
arable
land
is
approximately
double that of the next highest in
population
the
world.
The
death rate
States
high
and
as
lower
a
ours.
than the United
have
an
the President himself has
to
a
considerable
they
ex¬
the right
The
extra
in
which
forces,
severe
international
which
1953,
however,
payments.
Japan
suffered
I
Member« of the New
and
pride
in
its
takes
progress
simplification field
of
tragedies
it is deter¬
or
government. Any protection which
business requires in the national
good
open
substantive
the
tariff
such
provisions
and
in
not
dis¬
the
caps
the
greater
position
than such
to trade.
Moreover
the
of
all
you
know
as
event.
business in
has
In
certainty.
an atmosphere of un¬
Both in the field of
valuation
and
Again, as the President
said, it could turn the Pacific
Ocean into
a
Communist lake.
a
classification
The major effort to solve the
Japanese problem must be made
by the Japanese themselves. They
develop
fiscal
they
They
have
must
now
catch
at
in
the
his
field
the
importer
risk.
of
must
it
finds
He
difficult to know in advance how
his
resources
merchandise
and how
•
policies
adopted.
York Stock Exchange
proceed
fully and hold to the sound
more
Co.
their
appraisers to ascertain, both
"foreign value" and the "ex¬
port value," and to assess the duty
upon
the-higher of .the two. It
is
now
proposed to end this con¬
fusing and unnecessarily laborious
process of ascertaining both these
sets of values, and to standardize
the basis of duty assessment as the
export value of the goods. Experts
in the field have been urging
change for
the
this
years, and
most
the
administrative
customs
pro¬
•'
....t
As far
it
as
relation to current business prac¬
tice
make
for considerable un¬
certainty
to
as
applicable to
recently
I
the
many
.
will
be
valued
will be classified.
valuation is concerned
rate of duty
imports. Only
that'
noticed
the
Customs Court had to pass on the
question of whether
as
businessmen, it is impossible to do
unhappy
an
Senate. The present law calls upon
visions.
Congress,
guised form of procedural handi¬
to
sentatives in the last Congress but
of enactment in the
important one. There is no reason
Equally disadvantageous to busi¬
why business should be impeded ness is the present customs classi¬
by archaic procedures. These are fication structure. Its undue com¬
costly both to business and to plexities which bear often little
that part¬
few
Bill
mined to continue in the direction
last
think
of
similar
Jenkins
of further simplification. The goal
of (fcustpms
simplification is an
the
the part of the rest of
on
can
must
&
acceptance
free world
imbalance in the Japa¬
nese
White, Weld
Simplification
so-called
it is probably
important single im¬
provement that could be made in
in
said,
a
on
as
us.
prevented, up to 1953,
emergence of the consequences
a
toward
if
resulting dual
the part of some
interest should be in the form of
nership
es¬
Japan
the
of
expenditures
the United States, made
pecially
work
to minimize,
as
the
through
Nations'
United
the
to
so
partnership with the free world
through their own efforts and
in Japan.
scarce
system
remove,
recommended
which failed
the
in the customs
denied
are
the
has
of legislation
which passed the House of Repre¬
in¬
Customs
world on a reasonably balanced
basis, they will, I feel Sure, stay
on
our side of any
curtain. But,
as
to
the
While the Administration
in reasonable
be accepted fully
can
passage
recently
have
the
flow
a
trading partner in the free
a
the
modification- of
freer
Thursday, January 20, 1955
.
President
the
the
They
legitimate
..
of
price practice
economy
balance and
as
only three or four -million tons.
sponsible
demographic
forecast
suggests a population of
her
during the postwar period as
well. Capital and credit are very
birth rate almost as
I have seen no re¬
for
tent
population is in¬
creasing at about 1.2 million peo¬
ple per year on the basis of a
pay
prom¬
remaining
any
the
to
not
mem¬
a
nave
exporters.
have
be
oificials
link
conse¬
now
to
of
remove
dicated
good standing of the free
democratic world, can look for¬
ward to the time when they can
million
continued
square
per
to
trade.
in
preciation and obsolescence dur¬
Japan may slip behind the iron
ing
the war and this process bamboo curtain if
size
density
of
The
industry
who
desire
to
obstacles
in
ber
Her industries suffered severe de¬
about the
area
which
disastrous
and
deep-seated
stroyed and has been rebuilt now
in¬
dustrial nation, with a skilled and
an
to
markets
ised
Communist domination
have
quences
In
large merchant fleet of over
tons was largely de¬
Her
hardworking population now num¬
bering some 88 million people,
occupying
her
six
you
as
would
supplies of food and raw materials
have become severely restricted.
security.
Japan,
for whom
supplies
she traditionally shipped products
free-world
to
the
addition,
free world
the
the
Government
the Japanese future is very great
indeed.
If the Japanese people,
Japan
empire.
were
million, or about
25% of the peak and further de¬
clines are in prospect.
of
Chronicle
Japanese to the
such practices
and has indicated that they may
very well jeopardize the free flow
of Japanese goods. The Japanese
$600
stake
of
undesirability
appreciablysince
the Korean truce and in 1954
the continent
on
of Asia and her island
high
mutual
material
raw
by
from now.
result of the war,
a
lost her major sources of
The
attention
of
These expenditures
declined
The
make
to
deficit
payments
$300 million in spite of large U. S.
expenditures.
time
The Commercial and Financial
r~>!
stew
was
which
a
enumerated
In
canned beef
a
being imported
hash, or a non-
was
soup,
a
manufactured
practical
article.
business
terms, this
sort of thing often means that the
importer has to buy and spll for
several years with the knowledge
that the
duty
by
can vary
as
much
100% or more depending upon
the ultimate determination. As in
as
the
case
of
valuations,
the
only
up
with the rest of the world in tech¬
Other Principal Exchangee
niques and knowledge in their in¬
40 Wall
Street, New York 5
dustrial
life
competitive,
in
many
export.
backs
We maintain active markets
be
in
trade
which
hard,
It
and
MUNICIPAL SECURITIES
they must work
frugally and be re¬
live
is
and
efficient.
perfectly
that
even
and
their
if
clear,
however,
the
Japanese people
government take and
vigorously stand by the
steps
'
and
the rest
govern
INDUSTRIAL, PUBLIC UTILITY, RAILROAD
prac¬
trade
Finally,
us.
sourceful
Companies
unsound
international
game
of
Natural Gas
become
willing to accept the rules of
the
in
securities
must
they are not now
respects, if they are to
They
must
turn
their
upon
tices
and
as
and
decisions
necessary
for
a
pro¬
tracted
Boston
Los
Chicago
Angeles
Hagerstown
ceed
Philadelphia
San Francisco
New
Minneapolis
and
Haven
reliance
Providence
London
period, they will not suc¬
in balancing their position
relieving
themselves from
on
permanent
Amsterdam
of
sources
im¬
and
unsure
dollar
change unless the free world
whole is ready, on a fair
accept
several
dollars
as
hundred
markets,
add,
much
an
less
million
world's
amount,
than
may
1%
of
Members New
American Slock
York Stock
Exchange
Exchange (Associate)
a
basis, to
of Japanese goods in
more
their
free
ex¬
Laurence M. Marks & Co.
I
49 Wall
Street, New York 5, New York
Telephone HAnover 2-9500
Teletype N. Y. 1-341
the
imports. "
Japan had
a
reputation
prewar
of engaging in many unfair trade
practices including dumping, and
unfair pricing and sales practices.
Underwriters, Brokers and dealers
Although there is sufficient evi¬
distributing 5
^
dence
^
,
to
support
of
some
these
charges, the practices were
as
widespread as some of
Corporate and Municipal Securities
claims would suggest. In
ning to
of
encourage
have
we
since 1886
been
these
knqw
tion
Japan's
and
that
similar
some
postwar
the
Underwriters and Distributors
plan¬
trade expansion
of
especially mindful
"unfair"
of
our
not
practices.
there
We
reputa¬
prewar
have
complaints
been
in
the
V
-4
it*
Corporate and Municipal Bonds
i nst the
Japanese. Naturally there are al¬
ways
years > a
businessmen
tice
W.
who
Japanese
resort
to
«V>'
for
Exchange
continuing the
tation
of
1
*•
Investment Preferred Stocks
prac¬
are'inconsistent with
the best interests of Japan. They
are' responsible in large measure
E. BUTTON CO.
&
Members New York Stock
which
g a
individual
some
*
Equipment Trust Certificates
unsavory repu¬
Japanese
commercial
'
and other
practices.
The Japanese Govern¬
however, has taken meas¬
to protect foreign property
rights, to improve quality control,
leading exchanges
ment,
ures
NEW YORK
Philadelphia
CINCINNATI
Baltimore
Boston
and to prevent dumping by a sys¬
tem
of
floor
prices on, certain
..,
.
Burlington, Vt.
Hartford, Conn.
Columbus, O.
Leiviston, Me.
Dayton, O.
Lexington, Ky.
export goods. But the Government
Easton,Pa.
Portland, Me.
Union Securities
has not always been successful in
ferreting out the violators. More¬
over,
the Japanese Government
link
system, which
was
intended
to encourage exports, has led to
dual pricing on the part of some
Japanese
exporters/ The
United
States Government has called the
65
BOSTON
HARTFORD
Corporation
Broadway, New York 6
BUFFALO
•
•
PHILADELPHIA
CLEVELAND
•
•
SYRACUSE
•
Volume 181
hedge
Number 5396
-
The Commercial and Financial Chronicle
•
.
importer
the
that
.
I his alternate, would
much to cooperate with
and other groups in develop¬
constructive
plans
in
this
and
man
has
against possible losses is to set an-
like very
exceptionally high price mark-up
on the imported product.
you
In
order
the
take
to
first
ing
direction.
step
improving and simplifying our
classification system, the Congress
classification
imported products. 1
For
and
which
ment
modern
more
area of uncertainty in
deter¬
mining the rates of duty which
are applicable to particular prod¬
materially decreased by the use
Foreign Trade Zones since
tci get the duty
which
into the
determined
I
am
whether
have
those
through
pass
United
fore the
been
worked
on
ful
Los
are
—
in
areas
the
has
better
been
than
of
code
place,
trade
of
for
of
the
discussion
trade
as
and
grievances
and
The President's program in this
fieid- has
the
in
the
courage
local
capital
alone.
It is
job
interest
our
flow
to
of
to
the
terprise
such
is
it
economy
As
capital should
be
To
pri¬
them
the
we
do little
can
not
will
been
to
in
participate
be
carefully
abroad.
private
be
in-
customs
repatriating
loans
Par¬
multilateral
negotiations, recommending
that
share
to
These
fixed
proper
earnings
abroad.
In
duties do
consideration by the legislative or
other
appropriate authorities in
American capital invested abroad
emitted 1.7 billion in earnings.
most
loans
for
the various countries, and
Doubtless
larly those
interest
successful
until
and
brought
into
The
zones
but
in
the
the
serve
goods
United
are
States.
useful purpose
a
ing
judgment they have
by no means fulfilled their full
potential to the importing frater¬
my
provid¬
forum for consultation
a
garding trade disputes.": Such
negotiated
Agreement
will
re-, returned
re¬
would have
more
in
strictions.
the
The
reinvested
not
absence
outflow
been
of
are
re¬
porters
yourselves
could
could
establish
of
the
join
The
exhibit
one
The
Board
of
The
Agreement
meeting
or
would
in
Geneva
combine
the
facilities
the
technical
This
our own
the program
to
contributions
International
the
fields
bilateral program
from
the
United
States.
I am pleased to note in
this connection the increasing at¬
tention being given to the part
Bank
its capable management
assistance,
extends
support
administered:
by the United Nations with large
expand the useful¬
venture
the
both to
International
where
for
port
and
and
it
further
a
program.
which
by governments.
to
that
mention the President's firm sup¬
of
particu¬
basic facilities
confident
am
example of our
continuing interest in economic
development
abroad,
I
should
to
field
I
that
into
private
enterprise
Continued
capital
on
can
play
22
page
now
are
and
are
Tripp & co., inc.
ac¬
tively negotiating with these two
for
purposes
Foreign
which
basic
in
Proposed
of
ness
the
Contracting Parties to the
General
per¬
his search
,
goods.
Zones
at
This
zones.
help the buyer in
attractive
Trade
of
factors
order
of
t
As
loans.
Finance Corporation
In
Staff
system of world trade.
whicn
and
kind
a
selers'
manent
more
well as American im¬
merchants such as
as
and
two
owned
the
on
will prove a useful instrument.
fresh
of
was
proposal.
make the operations of the Bank
be, capital in 1953 was only about
.7 billion. Thus even now we have
submitted to the Congress for its
nity and to American merchants. approval. At the same time, the to buy an extra billion dollars of
I have recently had the pleasure
Administration
has
proposed to goods and services to finance this
of
discussing this subject with other Contracting Parties revi¬ net remittance. It would clearly
some of the officials of your Asso¬
sions of the substantive provisions be tragically inconsistent to advo¬
ciation. I think, in particular, that of the
Agreement to provide a cate a greater export of American
with
a
more
imaginative
ap¬
simpler stronger instrument con¬
proach, it would be possible to
create some cooperative entity in tributing more effectively to the
which foreign manufacturers and development
of
a
multilateral
exporters
member
charter make it inevitable that its
the 20 billions of
I
actively in the discussions lead¬
ing up to the development of this
broad trade policies for individual
less
When
International Bank, I partiicpated
of the United
1953
in ' the
to enterprises which
the
guaranty of
a
or
secure
be
capital
may be a useful de¬
vice for attracting private capital
into worthwhile enterprises.
instrument
government.
Moreover,
the nature of its operations and its
its
of
Fi¬
frankly
gov¬
either
made
in
resources
ship with private
member
trade
jurisdiction
States, United States
not have to be paid un¬
useful
a
secures
channeling of private re¬
development projects
However, its loans must
us to encourage a
larger export
capital if that capital must face
disappointment and frustration in
sponsoring
sell
This proposed International
by
into
-
for
to
event
hope that this
proved
the
of
the
in the
Corporation should
them to private investors.
partner¬
can
confining
stock
the
thus
ernments
to
a
provi¬
they would be
use gov¬
dissolubly linked with American
policy. It would be foolish
view
payable only
debentures fur¬
nance
The International Bank
"with
technically
considered
interest
contain
which
into
could
it
the
ernmental
..
trade
a
These
could
under
that
be
Corporation is a
experimental attempt to
for
is
Moreover,
would
most of its lending resources from
the private capital market. It has
to affect the
abroad
sion
in which the
areas
as
an¬
Corporation
debentures
which
if earned.
continuing
the Administration.
sources
investment
an¬
on
converted
forget, however, that
us
purchase
situations and
socalled investment climate.
Let
guarantee.
un¬
has
this
in' the fields of industry,*
mining and agriculture without
the requirement of a government
thermore
inyestment and giye Jthem. advice
that
President
firm and
our
that
Inter¬
It is
will make loans to private enter¬
fields
is
an
Corporation
prises
,
Bank cannot operate, development
loans by the Export-Import Bank
private
of
ticipated
devel¬
those
Finance
affiliate of the Bank.
an
support for the activities of the
International Bank. Moreover, in
point out to
advantages
the
in
investment
private
nounced
create the legal and in¬
can
abroad
likely,
stitutional conditions which favor
We
national
recommended
economic
encourage
where
job of attracting capital is
of course primarily one for the
capital-importing countries. They
investment.
has
cipate in the creation of
invest¬
attractive,
direct investment abroad.
opment
The
can
more
a
view
our
private
financially
President
can
vately invested capital.
alone
is recomemnding to the Congress
that authority be granted to
parti¬
can
which would
give a
point tax advantage to Ameri-
14
into
those countries from abroad.
foreign
we
en¬
courage the entry of private cap-'
ital into those fields, the President
legislation
en¬
capital
make
ment
the renegotiation of the organiza¬
tional provisions of the Agreement
port
be
ties
outside
the
do
therefore
of
countries.
many
instances
many
cannot
development
of
In order to do whatever
21
is most necessary and thus to
a
world.
the soundness of larger American
Since
are
In
to the infraction of
Code.
functions of the Contracting
zones
Investment
further
resources
follow
we
policy designed to increase
in an orderly way the dollar earn¬
ing power of the rest of the free
and practices. " In' ihe as to the conditions under which
plade; it has given us a use-' private capital will move. Beyond
foreign
goods
can
landed, repacked, processed, dis¬
played,
re-exported
or.
stored.
these
be¬
current
was
a
the
tariff
In the second
war.
forum
the
York, New Orleans,
Angeles, San Francisco and
where
great
a
simultane¬
practice
which
complaints
know,
five Foreign Trade
Zones—New
Seattle
countries
provided
airing
in
As most of you
zones.
sure, our
has
third
the
on
sub¬
policies
pre¬
not
or
it
the
States
Agree¬
with
discussion
problems
our
is possible
on
been
never
infinitely
bilateral
which I have been discussing can
goods
of
This
found
it
This
negotiations
ously.
zones
private capital unless
trade
that
number
'
goods
S.
U.
objectives
..
natural expression of our free en¬
tariff
Many of the customs problems
be
'*
the first place, it has provided the
framework
for
the
conduct
of
the
of
its
'
mitted to the Congress has served
several
important functions.
In
classifica¬
tion structure which will decrease
ucts.
this coun¬
to the so-
Agreement
has
requires
the
party
Trade.
as
simpler
a
General
Tariffs
Tariffs
on
Trade
years now
called
conndent'
am
some
try has been
of
a'result of this study, the
Tariff Commission will propose a
that
More
meet
...,
Abroad Needed
Agreement
And
directed the Tariff Com¬
mission to make a study of exist¬
ing classifications and to recom¬
revised
in this field.
»i
•
General
last year
a
which
ments
Economic progress in the world
in
mend
(277)
.of
the
Secretary of Commerce is Chair¬
the
in
view.
It is the hope
Administration
that
BONDS
URNPIKE
these
negotiations will result in instru¬
A Market Guide and Reference Card
OFFER INGS
CURRENT
YIELDS
-
CALL
-
•
•
FEATURES
r
Appro*.
Date
Maturity
Rata
Issuo
whole)
a
@
3.33
10374
3.16
3.17
103
104
2.66
7/1/55
108
100
4.00
20.60
9/1/81
9/1/57
1037z
3.05
3Vi
1/1/94
1/1/62
103
3%
10/1/94
10/1/62
3.30
5/1/94
5/1/62
103
2y»
3/1/80
3/1/55
4
1/1/94
35/4
Indiana Toll Road Commission
ites may
Date
104
Mackinac Bridge Authority
Kansas
Florida Stale
lower
always;- the New Year holds many uncertainties.
But it is safe to judge that certain new investment groups'
will gain prominence in 1955, while other recent favor¬
1st Call
Maturity
3.71
1/1/58
Mystic River Bridge Authority (Mass.)
As
Yield to
to
1057a
1/1/89
Turnpike Authority
Massachusetts
AND FORECAST
Yield
Price*
Price
4
Maine
OUR ANNUAL REVIEW
Approx.
Current
Offering
First Call
(as
Coupon
Turnpike Authority
(Michigan)
'
—
-
•
Improvemenf Commission
Tampa Bay Bridge
Turnpike Authority
105
3.46
10674
3.22
2.90
103
9474
3.63
4.50
3.95
.
Kentucky Turnpike
3.40
7/1/94
7/1/60
104
1007a
3.38
Maryland Bridge & Tunnel Revenue
3
10/1/94
10/1/62
103
104
2.83
2.77
3.60
11/1/94
11/1/64
105
105
3.37
3.43
Mississippi River Bridge Authority
lag.
'
New
Our Annual Review should
vestment
you
374
1/1/85
1/1/60
103
108
2.85
2.12
Jersey Turnpike Authority
3%
7/1/88
7/1/58
1037a
1053/4
3.10
2.60
New York State Power
cussions of:
-
•
Jersey Turnpike Authority
New
formulate an in¬
policy for the coming year. It includes dis¬
help
3.20
Today's underlying economic trends
Ohio
•
The outlook for business
•
A selection of
Virginia Toll Revenue
For your
copy
of the Annual Review write Manager,
Research Dept.
'
-
\
,
leaosng
york
stock
stock
and
781
BEAVER
STREET.
NEW YORK <4.
FIFTH AVE.. N. Y..
NEW
YORK
CORAL
•
CHICAGO
GABLES
-
N. Y..
DETROIT
• '
HOLLYWOOD, FLA.
2.22
6/1/82
6/1/57
103
104
2.79
2.49
6/1/93
6/1/59
103
10374
2.96
2.95
3
9/1/94
9/1/59
105
983/4
3.05
4.27
937a
4.10
7.81
99
4.18
6.09
374
12/1/89
12/1/57
105
12/1/89
12/1/57
105
believe the information contained herein it correct
'
;'Pricei and yields as
but
40 Wall Street
and
Turnpike
Bridge ^Revenue. Bonds. who
Market
Guide and
Reference Card
1-2220 r
is issued at
regular intervals.
BEVERLY HILLS. CAL.
'
r' 1 V s-
ARGENTINA*
guarantee
iff accuracy.
pleased to hear from in¬
and dealers- interested in
B0wl?n<HGreen_9-8420 '
MIAMI BEACH
do not
-
of January 17, 1955
to
•
we
stitutional and* individual investors,
OFFICE:
exchanges
GENEVA. SWITZERLAND-AMSTERDAM. HOLLAND • BUENOS AIRES.
2.94
would like
PITTSBURGH"
•
107
47.
NEW YORK
aho-other
(Sherry-Netherland Hotel),, plaza
•
103
Virginia Turnpike Commission
HAnover 2-5252
60
6/1/59
We will be
exchange
commodity
2.66
6/1/92
Virginia Turnpike Commission
1856
H.HENTZ & CO.
new
3.28
2.88
West
,
members
3.12
10574
West
-
We
FOUNDED
'
.
1013/4
1037a
3.10
Pennsylvania Turnpike Commission
promising industries
103
7/1/60
3
Pennsylvania Turnpike Commission
Turnpike Commission
1/1/63
7/1/94
374 '
Authority
1/1/95
3.10
Authority
New York State Thruway
receive
our
which
'
WASHINGTON
OFFICE:
805 15th Street, N. W.
District 7-6403
j
\
I
I
—-
*
22
The Commercial and
Financial Chronicle
(278)
Continued
from
rapidly approaching
21
page
Trade Policy
Right Direction
in
transferring
skills
If
interested
ress
throughout the world, nothing
i;
economic
in
prog¬
than the
the
system
important
more
tries to abolish
trade and
to
cisions
major,
currencies must
we
President
make
in
the
con¬
only has to spend
respect,
has followed
the
Randall
undertake
the wise
dash
but
that
towards
in
of
counsel
Commission
no
vertibility
President
the
N. Baxter
from the
come
now
having
We
couragement
times throw
our
of
ary
line of
its
there is
coun¬
for
reserves
world
of
atomic
our
If
An
is
by
to
rest
directioh
the
at
man,
don
world
of
regional
schemes, policies of
self-sufficiency however uneco¬
nomic-and an expansion of EastWest trade irrespective of security
second¬
countries,
corisiderations.
want
however, theirs.
is
to
Is
I
see?
clearly NO.
this
think
In
what
the
our
H
on
the
General
est
Agree¬
Tariffs and Trade which
self-interest,
of
fair
we
need
competitive
a
d
e,
a r e
d
DISTRIBUTORS
we
deep¬
N.
world
>
lessened
was
by
against
a
that
Baxter
Jackson
of
railrnaH
nf
services
greater
with
saw
saw
what
wncti
I
a
believe
uuiiuvu
12,813,000
units
sold
As
to the close of the
we come
another
year, we see
abie factor.
very
Inventories of
appliances in the hands of
facturers and distributors
favormajor"
manu-
believe, banking in
we
eral and Chemical Corn
5,000 units more than they were
at the end of last year. When the
inventories
carry-over
air
was
was
conditioning
of
,
.
room
and
units
.
auto-
,
.
selling pace
in
July,
general pick-up in
ditions,
new
life
with
the
business
con-
into
came
this product,
of
.
.
.
.
in
particular
threshold
.
tories of all other appliances com-
the
.
bined
24% less than thev
are
Mr. Packard « the On- N0V. -30 3
the National Ap~ this fact with
Address
A"nual Convention
pliance
tion,
and
Radio-TV
Chicago,
Dealers
in., Jan.
Associa-
*955.
ro,:
\
_
-
pace,
year ago.
ties
*
'
•
.
*Established
for
,
„
the
increased
*
'
'
Members
*
CHARLOTTE
Atlanta
■
Direct
INCORPORATED
our
industry inventory
Dealers and Brokers in
Midwest
■
NEW
.Greenville
Wire
Between
Atlanta
Stock
Railroad
reward
Bank
with Chemical
the
,Trust
Corn
of
the
Public Utility
—
;
New
and
<
Raleigh;
p
Richmond'
Bonds & Stocks
Corn
Trust Co.,
given
were
Municipal- Bonds
a
Chemical
present
Exchange -banking systema total of 98 offices in
boroughs of Gfeater New
York, Charlotte, Chicago,
Raleigh
GORDON GRAVES & GO. INC.
all five
.York.
4
V;.
...
30 BROAD STREET
•
NEW YORK
bank, Mr. Jackson pointed
out, is now "in excellent position
to
contribute
to
the; economic
growth not only of Greater New
;
*
but
of
the
nation.
fortunate
to'
be
We
Telephone WHitehall 3-2840
are
strategi¬
cally located in the greatest of all
cities, the crossroads of interna¬
r
tional
i
business
and
finance.j It is
'
interesting to know that in New
•York City, "since the
''warjmore
;
than
17
million
modern
SPECIAL SITUATIONS
office
or are
struction.
This
greater
old
in
and
any
save
new,
-have
well
of
than
city
STOCK 6- BOND
of
alone
space,
exists
of -the
BROKERAGE SERVICE
is
both
today
world,
for Banks, Brokers and Dealers:
one."
*
.
•
i
The
meeting was held on the
banking floor of Chemical's Main
Office
at
directors,
165
Broadway.
Eight
whose terms were ex-
:
piring, were re-elected as follows:
j Robert A. Drysdale, Drysdale &
Hettleman & Co.
Co.; Frank K. Houston* Honorary
of the Board; Dunham
Chairman
NEW
YORK
5, N.
Y.
j B.
Sherer,
Goelet,
real
New
York;
estate;
Robert
Thomas' R.
»
Telephone: WHitehall 3-5770
-
Williams, Ichabod'T.
1
Sons; John R. McWilliam, iViceChairman; Harold H. Helm, Presi¬
dent; W, Ross McCain, Chairman
of
the
Board, Aetna Insurance
Group.
1 -
<
,
been
,under con¬
increase
amount
other
feet
square
space
completed
a
STREET
4
The
Offices
indeed
WALL
Industrial
which, has
;
York
ONE
—
Company
Bank &
^shareholders'
•picture
CHICAGO
October of
last
merger
Exchange
Exchange '
YORK
responsibili¬
Their first annual meeting since
the
*
'
larger
commensurate
Williams &
i
i
*
e
*
.
Hardy & Co.
Members
New
Members
J
American
York
Stock
Exchange
Stock
Exchange
30 Broad St.
New York 4
Telephone DIgby 4-7800
MAIN
ST.
&
Teletype NY 1-733
MEETINGHOUSE
sales
...
I-feel
the
quality service."
1919
R. S. Dickson & Company
»
of
with
-
GoUphng'
by
gen-'
on
were
Dined are m h. less tnan.iney were..
•An
Exchange
are
are
eliminated from the totals, inven-
•
-
'
only
are
correspondingly
of
capital.
t
in
is big business,
year
employment
.
Bank
1954
inon
Beginning
creased consumption of goods and
Thus,
I
the
the most comPetiitve sales condi- mat'c- washers, which are of
tion tiiat we' as an industry, had course up because of the increased
ever faced.
living standards to all people." In
this
regard, Mr.
Jackson
said,
"it
should
be
noted,
increased
productivity always provokes in¬
Securities
in
By every standard, nearly
13>000,000 appliances sold in a
the
as
utility
expansion
this
metropolis stands ready and willing to play its part in a new
DEALERS
volume
lost
1953.
In addition to these two market
public
Corporate and Municipal
'
1954
e-
industrial and
enterprise
the
of
every
result of this change,
a
early part of the year has been
picked up, and according to the
pms
«
*
much
expect
1944.,
world of atomic energy and automation that should
bring better
UNDERWRITERS
standpoint
can
factors, inventories of prior-year
city has pTayed- merchandise as of' Jan. 1, 1954
leading
roles were on the high side in relation
i n
financing to sales ratesAs a result of
thp Prpat
these factors, the first five months
"Just
*
Through
the
we
conditions of this past year,
during
City.
o u s
1
c
answer
own
it from
changes
As
in
exceeded
were
month.
contmuing lower' family formawho
also is t*on rate' and
the fact that we
President of ^ad no aPPliances reaching the
the New York r^P^acement age of 10 years, since,
Clearing
course, none were manufactured in
strongly in
further
the
ures
discuss '55,
as we
Mr Jackson
and payments
undertaking currency convertibil¬
ity. The main part of the job is,
ment
of
appliance business, and from August on, previous year's sales fig-
moments summariz-
that
so
do
can
energy
'York
■imm
of protectionism,'
attract,
of the
few
a
we
changes
perhaps I should
Without going into a lot of detail, statistics on annual'sales furnished
1 think it is now obvious to all of by Electrical Merchandising, we
us that as an industry we went will wind up 1954 with only about
annual meeting of into 1954
business con- 40.000 less appliance sales than
Chemical Corn ditions generally at a slower pace were
made in 1953.
Electrical
Exchange t^an ^ey were in '53. The mar- Merchandising's
final figures
for
54
12,771,000
units
Bank of New
t°r major electric appliances show 10 r"71
United
the
indicate
expanding activity for New
was predicted on Jan.
N. Baxter Jackson, Chair-
York banks
18
trends
ing 1954,
from
friends
decide
now
Since
spend
and automation.
preference systems, bilateral trade:
support in the In¬
a
-
from the present,
metropolis
says
doubt it would
the
give our en¬
at
appropriate
as
no
the
inconvertible
resources
thing.
the cloak
again
ternational Monetary Fund to the'
use
fighting for," and stresses need of more creati/e selling.
Forecasts appliance sales in '55 at around 14 million units.
ready to play part
The direction is the
move.
States-should
can
and
stand
new
worth
Jackson, President of
Chemical Corn
which direction
in
see
important
ini-^
Currencies.
will
we
and
lowed the advice of the Commis¬
sion in recognizing that the
flative must
in
Europe and elsewhere to recog¬
waiting to
con¬
a\moderate
banks
few days talk¬
nize that the whole free world
we
gradual approach. He has also fol¬
tries
a
ing in the Ministries of
this
1955. Says, however, the capacity to
produce major
electric appliances still exceeds size of the
present market, and
ties in
appliance merchandising can be expected to be intensely com¬
petitive. Refers to problem of "discount houses," and contends,
despite unfavorable factors, the "app'iance business' is well
of the rest of the free world. One
vertibility.
fn
a
community
principles of
City Bank
recently merged
Exchange Bank,
resources.
has
direction of
sound
New York
therefore-,
Sometimes we forget the mass¬
announced the firm support of the
ive effect which the overwhelm¬
United States for appropriate ac¬
tions which countries having in¬ ing strength of the United States
has upon the policies and actions
convertible currencies are willing
to
trading
the
Sees Greater Role for
are
of
most efficient use
The
on
app'iance
industry in 1954, Mr. Packard discusses business factors which
portend improved condiiions and greater marketing opportuni¬
time-tested economics.
which discourage the
ilar devices
reestablished.
be
After pointing out the unfavorable situation in the
reduce barriers
or
If
steps so essential to
world
based
to have
cstablishment
of
of
economic progress throughout the
multilateral trade and payments,
which
was
one
of
the
war's, world, we must get rid of import
quotas, exchange controls, mul¬
casualties.
For this to,be done,
tiple currency practices and sim¬
tie convertibility of
the
possible.
as
and
freer
payments as rapidly
re-
Kelvinator Division, American Motors Corporation
Let
they ask so that they may be
heartened to take the difficult de¬
International
1955
PACKARD*
General Sales Manager
:
as
A.
then give them the encourage¬
us
Fund and in bilateral
negotiations, the Administration
will continue to urge other coun¬
trade in both directions and if we
rre
fact
do.
we
By D.
States
in
it
than
free
ment
Monetary
increased
have
to
are
we
the
through
tiate
countries.
the
United
the
more
crowning
of
this too—want
want
much if not
the President proposes to renego¬
other
to
the
leaders
outside
world
The Appliance Industry in
convertibility
is
The
Thursday, January 20, 1955
.
bal¬
proper
a
full
currencies
symbol.
Eisenhower's Foreign
-A Move in the
which
of
ance
of
.
.
LANE
SOUTHAMPTON, L. 1, N. Y.
Number 5396
Volume 181
situation is in
dition.
merchandise
year
-
'
As
'
-
be
since1
■
,
look
we
•
:
at the performance
of individual appliances last year,
refrigerators, ranges, and freezers'
will all
10% of
yet, with
year
matic
washers
out-sold
tional
washers
two
clothes
of
this
sold
greatly
the
forf
washers..
to
performance^
total
exceeded
year.
dollar
the
previous
As
we
look
ahead
to
the
much
a
business
ket.
con¬
As
econo¬
expected.
conditions
the year,
all
made
Em¬
unless
change
during
it is expected that over-,
business
from 5 to
will
1954
:
10%.
exceed
/
■
;
,
.
There are two factors which di¬
rectly affect the appliance indus¬
try, in addition to the encouraging
over-all
business
improvement:
Jteflecting the low national birth¬
?:
rate
of
the depression years
two
"decades
ago,
1954 was probably,
cthe low year in the rate of new
family formation, which has been
/dropping
since 1950.
The turn
upward should begin in 1955, with
each
year
showing greater in¬
creases from here on. New family
long
ex¬
as
this r condition
opinion, it may
or
three
more
appliance
-
be expected to
able
result of this
only be aggressive competi¬
to
can
at
tion
him.. The
all
within
levels
in¬
our
I
me
am
to
that all of you expect
sure
include
trends in
to
in my
remarks
on
industry some refer¬
what has been the most
our
ence
publicized
trend, in
studied-this
boom
in
new
construction.
home
trend of 1954.
refer, of course, to the growth in
I
retail
both number and volume of what
trade
the
This
retailers
in
"discount
termed
has
houses."
problem is facing
many fields besides
appliances, including floor cover¬
discount
operations — literally inch
inch
in the hopes that we
a practical solution to
by
problems this type of selling
has brought to conventional re¬
tailers. You must understand that
we
or
der
love
to
&
appliance
fighting
as
a
w;as
result of moves my company
able to make,* appliance
tailers
the
be
to
first
find
,
..
PITTSBURGH
morning.
•
-
number
A
with
in
me
minds
your
back
to the
go
furniture
and
of
stores
America
entered the retail appliance
field.
remember this
Those of you who
in the early 30's will also remem¬
ber that these stores brought
into
industry a new and more lib¬
term structure.- They initi¬
our
eral
ated
the
the
on
selling of refrigerators
plan, for nothing
KEYES FIBRE COMPANY
meter
down and only
15c a day.
I well
predictions made at that
recall the
Manufacturers of molded
products and plastic products
Excellent management—sound
financial position—-and ail important
industry position in the ever expanding market for consumer repeat
paper products are the important characteristics of this growing
Company.
7
.
recommend its securities for dividend, income and
to
capital appreciation.
The Common
is
now
available
at
»•
i
\
;
*
'7
,
/
r
ESTABLISHED 1914
-
r
•.
•
r
-
•
MEMBERS
STOCK
EXCHANGE (ASSOCIATE)
Walnut Street
PHILADELPHIA
Bell
8-0900
Call
for the
Bank and Insurance Stocks
together with
to
New York
Telephone
COrtlandt 7-1202
30
Appraisals
Equipment Trust Certificates
active
possibilities for 1955. Each
De-^
partment discusses in -this
publication topics of special
PA.
JANNEY for—
assesses
Research
2,
System Teletype
PH
selectedv list of securities
interest
..
PHILADELPHIA-BALTIMORE STOCK EXCHANGE
with attractive investment
our
,
Boenning & Co.
-
Authority Bonds
Municipal Bonds
January issue- of our
month
about eight times estimated 1934
earnings, to yield better than 5%.
Semi-annual
a
PA.
Securities
of you can
SECURITIES
year,
19,
Municipal and Corporate
'
LOcust
new
24\
BUILDING
ALCOA
15T8 LOCUST ST., PHILADELPHIA 2, PA.
prospects
page
I
7
6-9242
survey
on
THOMAS & COMPANY
of the time and attention we have
1529
business
Continued
emerged from these com¬
AMERICAN
timely
or
10 years!
when new families will!
at a record rate, as a;
the
However, as of now, I can only
honestly say to you that in spite
Corporate Bonds and Stocks
•
The
from now,
be formed
is well worth
Five
.
CO
General Distributor
RIttenhouse
re¬
business
for.
solution, and I am sure that who¬
does will deserve and receive
a lot of credit
from the industry.
Incorporated
1845 LAND TITLE BLDG., PHI LA. 10, PAI
V
thosef
distributors,
and
mentioned, may be a pretty com¬
petitive year, the future in the
tailer; but, once again, and partly
request
upon
-
ever
Rambo, Close & Kerner
INVESTMENT FUND
BAILEY
made
were
about the end of the appliance re¬
,
A.
with
closely
who believe in and practice sound
,
,
INVESTORS
Prospectus
working
By
manufacturers
.
existing price structures. Once
again dire predictions
We continue
GEORGE
the
other company would ^
any
SOVEREIGN
A MUTUAL
in
past, so, too, do we expect that he*
will meet the challenge of today..
fered appliances at $40 to $60 un¬
.
The second factor is the current
industry
our
early 1930's when the department
dustry.
formation
>'
merchandising,
in
in
"
Tnost
is, of course, one of the
important factors in determ¬
ining the market for major appli¬
ances.
7:. /7\''. :■
; •
' 7,"/
methods
-
<
given to this subject, we still do
not see what the lasting effects
quately present marke t needs.> of this trend wilt be on the over¬
Under
conditions
of
this
kind, all retailing structure in our in¬
each
manufacturer,- distributor dustry.' There is one important,
and retailer is constantly striving historical lesson, however, regard¬
to obtain a larger share of indus¬ ing this situation which I want to
try volume than is readily avail- leave with everyone of you this
by
:
still
types
merchandising
continue to be
intensely competitive. To say it
another way, I think we all know
that we have more manufacturers,
more
distributors, and more re¬
tailers in the appliance business,
than are required to serve ade¬
which these predic¬
on
were
and
up,
all
exists and, in my
be with us for two
both
conditions
be
all realize that the
we
must understand that we have
you
house
ceeds the size of the present mar¬
years,
can
oppor¬
the
can
ployment will be
revolutions
my
could find
mists that better over-all business
tions
brighter picture from
However,
next
are, of course, all
scious of the predictions by
and
that
appliances of
we
government
see
capacity to produce major electric
So much for 1954.
year,
will
1955
the
vol-?
>/7;^7a^77./- ',7.
■
petitive conditions stronger and.,
with a larger per cent of industry '
volume than they had had before.
Just as the appliance retailed
met the challenge of these two
„
and:
one,
continues
standpoint of market
laundry equipment sales i tunity in the year ahead.
that
in
ume
to
was
it
...
conven-i
automatic
result
means
:
dryer
three
every
The-
1,200,-;
over
if
and
the
For the first time auto-/
GOO units.
23
business methods, he can continue '
associates and my com¬ there was more business for all. to get an ever increasing share of'
1,300,000 new residential units pany continue-'to work in every? Appliance
dealers
gained in the total appliance sales avail¬
built in this country.
: : ; ; .
able.
'
.77
-7"7
7
way
we can in the interests of; strength.
When you add to these favor¬ sound retailing^ I think most of t
A few years latef the mail or¬
; I would like to make one other
able business factors the continu¬
you know that we refer to this as,' der
over-all comment at this point.'
segment of our business be¬
ing growing acceptance, of our "retail-minded thinking."
:
While 1955, with a continuation"
came unusually aggressive and of¬
newer
appfiances, it all adds up
Knowing this, I am sure all of
of some of the conditions I have
its»
overproduction,
figures indicate
sales
biggest
one
1953;
Although the air condi-1
industry is plagued by/
tremendous
final
within
come
figures.
tioning
a
the
to
moved in '55 than any year
1951.
result of the changes made in? ings, jewelry, silverware. .You < time—that since these terms were
Housing Act of 1954, making / even find rt now in the automobile / not available- to -the appliancelower down payments and more' business.* Our industry has borne r type retailer, he would soon lose
favorable purchase terms avail¬ the brunt of many newspaper and his position in our
industry. But
able
to
home purchasers,
magazine articles on the subject. * it is. now a matter of history that
n e w
home construction has gone ahead
•Most of the men in this room' that did not happen.
While these
by leaps and bounds. Preliminary know me personally, and many of merchandising /accounts brought
figures indicate that Novemebr, • you have know me for a good new competitive terms into the'
1954 will set an all-time record in
many years. All of you who know business, at the same time they
new home starts
for that month.. me
personally also know of my brought with them a tremendous
Here, again, both government and sincere and continuing interest in r volume of retail advertising. Pub¬
business economists are forecast-, the
stability of the retail segment; lic acceptance for appliances in¬
ing a continuation of. this trend, of our industry. .You also know, creased rapidly and, as a
result,
As
there
indication that there will be less
prior
(279)
The Commercial and Financial Chroniclei
.
healthy con¬
is every
a very
Certainly
„
.
7.
„
Pennsylvania Tax Freev
trading
f
^
■
markets
Industrials Rails
Common and Preferred Shares
serious-minded
City of Philadelphia
Utilities
and
Philadelphia School District Bonds
investors.
as
City-County-State-Authority Issues
of
Guaranteed Rails
December 31, 1953
Now available for
!
distribution
Write for your copy
G. H.Walker & Co,
ESTABLISHED
New York Telephone
'
WOrth 4-2140
1900
Bell Teletype System
Members New York Stock Exchange
ONE WALL
White Plains
St. Louis
1529 Walnut
Street, Philadelphia 2
RIttenhouse 6^7700
STREET, NEW YORK 5
Bridgeport
JANNEY & CO.
Pi I 80
STROUD & COMPANY
1
.
Hartford
Providence
Cable Address: "WALKERIAN"
Incorporated
PHILADELPHIA 9
Since
1907—Underwriters, Distributors, Dealers, Brokers
New York-
•
Pittsburgh
•
Allentown
•
Lancaster. •
Atlantic City
/
24
| The Commercial and Financial Chronicle.., Thursday, January 20 1955
(280)
Continued
The
result
23
page
future
birth
tremendous
the
all
early 1940's, and when
of the millions of appliances
reach
capacity,
more
dis¬
tributing capacity and more re¬
tailing capacity than we have yet
don't know
the
fact,
of
an
As
I
volume.
a
would
ances
this
be
with
figure
1954,
our
that more than
electric appli¬
were
major
11,000,000
favorable
more
into
started
we
predictions
industry where
long-range outlook, based on
bespeaks
your
sold.
Coupling
the fact
that at
than
how
customer.
get
tions to
their
to talk to
the
Public Utility
Public Utility
and
Industrial
t Co,
new
to
out and
go
developed
look
1890
use
BANKING
vinator's way a few weeks before
Most
He
up.*
proceeded
sales¬
or
lock
told
the
for
her
she
opportunity to win
prize.
He
main
still
potential
consola¬
a
invited
her
The
to
lock.
second
a
her
key
second
lock,
in
end
one
she
had
the
'
' *
of
alone
was
how
with
We
we
country
for
as
result of
a
Since he
nothing
us
to
sorry
of the oldest
know
I
it
is
of.
built
.
\
forT
no
to
sales results,
see
I
was
and
a
in
a
store
salesmen
or
for
asked
salesman
first
at
which
her
like
to
reply, the
to
to
the
;
win,
in
and
one
the down payment
freezer
isn't
the end
our
and
you
I
that
of
sold
Established
Boston
NEW
went
time
for the
she
to
CALL
OR
rest of
Later in
she
retailers-with
then of¬
the
season.
the vear, we provided
a
little
vertise
as
a
$3.95
value and
Continued
CRUTTENDEN
209
S.
LaSalle
Denver
Milwaukee
York
Street
Stock
on
•
&
CO*
Exchange & Other Principal Exchanges
Chicago 4, Illinois
Grand Rapids
New York
insulated
shopping bag that they could ad¬
be
WRITE
New
18-foot
room
Los Anoeles
Members
an
say,
in the
1953
YORK
up
this dealer, who
here today,
to work on creative selling
be
may
register.
BONDS
St. Paul
you
fool plan
full list sale I've made in months."
Needless
LOUIS 2
1898—Incorporated
'Cincinnati
and
matching refrigerator
price, and it is the first
Exclusively
CHICAGO
his
at
bed
call
your
Years
MUNICIPAL
the- story.
of
distributor
just
brand
Saturday night*
him out
just had to
tell
a
•
got
"I
at full list
After getting
salesman
as
the
looks, and his
using her old
up
freezer and
into
case
upright
an
surprise he
he created a desire,
Then he showed
size and
called
said:
retailers
same
his
to
o'clock that
home,
helpful by telling her
all about the appliance she was
interested in, so she could write
customer came in
This
he
you
appliance
and
of appliance—
refrigerator.
At 11
oppor¬
opportunities
didn't win the house.
her
both
worked.
these
was
fered
standing
a
.y
review
entry,
got action.
new
and
k
would
why it did not
on
,
that
Much
refrigerator
the
salesman
there," and
of
out
would
complete demonstra¬
prospect would
over
end
ex¬
the refrigerator that matched the
store.
in
op¬
He
lady
happened to be
freezer in
When the prospect came in
she
work for them.
morning when
the
on
the
turned
Some retailers used this
or
and
stores
sales.
prize.
easy
one,
"Right
We; how* other
around
asked
was
of
came
the
better
a
a
found interest,
cus¬
placed
LeL'me- again
The
it
were
front
customer
and
an
found
contest,
her choice
on
freezer.
Once
some
her
tion
dealer's store
our
the
314 No. BROADWAY
57
do,
was
of
appliance
which
the
not
here
an
alone,
was
to
else
kind
writing
gave
first prize.
as
people,
card
like to win, offered his assistance
in
that in
the
was
locks, in hopes of winning
with little
which
national contest
a
blank.
say
/. table at
When a
tunity.
that
ran
entry- blanks
to
that
know
direct
in
this
plained
again;
results were directly in relation to
the way dealers! handled people
coming in for entry blanks^' I am
selling I am talking about. In
early, part of .the year, we
all
as a
a
selling didn't
work, he decided to give the cus¬
were
Later
works.
entry
an
1 he
store
days
$25,000 home
a
of
a
Corporate Securities
it
pointed
one
or
sales
his
Sat¬
a
portunity to find out for himself
activity.
encouraged
them in
and Industrial
in
on
window, and asked for
thought maybe
The retailer
me
asked
You
Municipal Obligations
this
tomers, to go to
>
merchandise
appliance
case
spring,
to do business.
of
other.
mipor
a
cus¬
A lady and her hus¬
in
came
his
entry blank.
course
and
dealer
urday night.
band
After
of
find
to
store about nine o'clock
interested in owning, and
try
how
on
by talking to people. Tne
story from here on goes like this:
leaving her name and
stating the appliance
was
and
customers.
the hard way
ex¬
tomers
had
give you another exam¬
ple of creative selling in the store,
called it the Lucky Key Campaign.
Underwriters & Distributors
to
formation
Let
in classifying
you
dis¬
the
distributing keys, and getting peo¬
ple to come to your store and try
For
the
try it Kel-
he
result
within your
retailers who worked with
the
ST.
to
in
the dealer
was
made in hours
gimmicks for bringing people into
:n
answer
help the cus¬
the key... When it didn't
started out with
YEARS OF INVESTMENT
3
So
tributor asked him
who offered to
Let me give you just two or
three quick examples of the kind
Stifel, Nicolaus & Co*, I tic*
STREET
business, and received the
plain to the dealer the opportuni¬
ties in the Homemaker's Holiday
Contest, and offered detailed in¬
after
people and finding out which
were
from
ADAMS
activity.
prize for her trouble.
We then
in
your
placed
and
stores, to help
BROADWAY 6-8040
the
CHICAGO
simple
registering,
opened the
prospects outside of your
people—to your stores.
for
W.
luck
better
giving
this
then
believe
me,
gentlemen,
it
worked; and it produced business
105
"Sorry,
asked
doing to create
was
nothing.
she
But
Public Utility
he
tomers the full treatment.
salesmen
and
65
him what
literally
register,
This may all sound complicated
SINCE
appliance
door
the
as
think¬
was
the
distributor
interest, and had established a fa¬
vorable atmosphere by being
courteous
and
helpful.
In case
the
•
quitting
The
address and
stores, we developed a series of
campaigns designed to bring peo¬
ple—not customers, mind you, but
SECURITIES
STREET
of
business.
that
hands materials to
MASON
"Didn't
by this time knew the lady's chief
for
225 EAST
distributors, in¬
things didn't get
if
better pretty quick he
received
get
INVESTMENT
our
that
you, built around these precepts.
Since too few of you had or could
Institutional
m
of
one
dicated
the
made to this question—
tion
who
in
Municipal
Mutual Funds
again,
with
didn't
Many in this room participated
two, three or four of the vari¬
ous
sales campaigns we brought
Industrial
Insurance
a
too often
an
of creative
type
in
prize,
matter
a
dealer
work
selling worked; and thousands of
plus sales were made by retailers
using it with us in 1954.
/ftcrulk
f/tcc/b
now
are
This
record.
of
us
A
mean.
tomer try
this fact, and
retailers
It
time."
man
if
theyi
organiza-;*
Our results and
the
of
the
leaving
back
closed:
I
example
city was pretty dis¬
gusted with selling conditions in
his market, and in a conversation
said, "No."
successful
opportunity possible
people.
results
worked with
SECURITIES
sales
understand
to take every
WISCONSIN
&
customers,
new
what
ing
called
of
type
interesting
an
from
.
would
called
this
Let me compare this with the
experiences of many retailers who
produced a lot of added business
come
assured our retailing
that they would develop
we
key.
He
going to be necessary
four people to find one
Based on past experi¬
many
'/nyrtiiiied //united in
had
day
"There's
was
She
was
talk to
to
he
Here's
of
by
selling.
Midwestern
work?"
door
the
the
she
As
;
.
there."
over
tried
store,
next
we
way
every
that
tailers
friends
Bank
She
work.
knew
In
we
when it
right
tried to convince our re¬
tomers.
ence,
MILWAUKEE
lock
to wait for cus¬
continue
to
creative
key to try?"
a
said, "Yes."
The retailer said,
during the past year. With this
as a basis, we started
ance
have
produced
were
She
information
share of the major ap¬
pliance market in 1955.
get
will be needed to handle the
appliance
indus¬
appliance
wouid buy
Now, I am sure you would like right out the first of the year try¬
have me spend a few moments ing to get the retailers we were
on
what you, as individual re¬ working with to see the oppor¬
tailers, can do to successfully com¬ tunity they had if they would get
pete under today's conditions and busy and talk to people rather
replacement age, more man¬
potential
our
"Do you
four families in this country
a major electric appli¬
every
better entry. Thousands of sales>
a
44,000,000
to
early 50's
ufacturing
seen
than
try.
rate of the
sold in the late 40's and
beginning
were
Appliance Industry in 1955
of
The
of the year there with a key in her hand.
wired homes in owner of the store was busy re¬
the United States, it was obvious arranging some stock at the back,
that on the average, one out of and without leaving, called to her:
the
jrom
•
DEarborn 2-0500
Indianapolis
Lincoln
Omaha
St. Louis
page
sell
113
I
.
Number 5396
Volume 181
.
The Commercial and Financial Chronicle
..
(281)
Our
Reporter
Another Reversal
Governments
on
NASD District 13
on
Elects Cock, Johnson
Monetary Policy
By JOHN T. CHIPPENDALE, JR.
Harold
Trask
By JULES I. BOGEN
The
government
tinues to be
con¬
unsettled, because the
markets
money
.
market
conscious
are very
the credit limiting
of
the
policies of
that be. The fact that
powers
rise
the
in
the
to
ket,
which
traders
Government
a
has
will have to
depth
no
depend
and
is
mar¬
Dr. Bogen forecasts
what¬
for
will
there
School of Business Administration
New York University
all,
dealers,
at
be
stock
market
which is being taken by the Fed¬
eral
the
Reserve
being
Board,
watched
market
money
evident that
is
market
closely by
specialists.
It is
long as the stock
very
as
the
in
boom
there will be action by
authorities
tary
that
means
of the equity market is
trend
to
demand
fensive,
markets,
seek
talk
is
there
thin,
great deal
of
"
bond
being used for refunding
'purposes in the middle of March.
Short-term
demand,
issues
because
have
good
a
cautious
money
always seeks this kind of invest¬
Treasury Market Sensitive
thin and sensitive Govtrying to keep
ernment market is
head
though
'to
the
The
The
under
the
are
im¬
influence
of
the credit
the
tightening operation of
powers that be, because the
stock
market
seemingly
reached levels which
sidered
that
Federal
Reserve
the
evident
policy with
to the trend
reference
con¬
for
be
It seems to
economy.
not
are
favorable
be
to
has
of
interest
rates, will be one of modest firm¬
for
ness
foreseeable
the
Whether
will
there
be
future.
further
tightening of credit conditions will
depend upon what takes place in
the equity market.
Restriction
Credit
Policy
dicates
it seems as though
mostdistant
Government
going to be on the
defensive as long as the monetary
authorities are going to bo con¬
cerned
with the credit
limiting
operations.
market
as
Government
a
whole,
bond
mar¬
in
particular. As the powers
be, t>ring about a reduction
excess reserves in order to give
better
control
over
the
little, if any,
given to the
Government bond market by the
money
markets,
very
attention
will
monetary
authorities. This
longer
Treasury
influence
of
monetary policy, the
to whether the
as
will
bring out a longbond for refunding purposes.
term
There
a
Government
the
under
question arises
is
considerable
long-term
take
bond
called
March.
about
talk
being
used
to
of the 2%s which have
care
been
15.
for
If
payment
on
long-term obliga¬
a
the
the
of
27/8s.
extension
an
the due date. Also in the
amount
buyers of
there
a
of bank
long-term bond
any creation
new
would
be
not
deposits.
1953
to
be
seems
investors
other
type should be purchasers
long-term
Treasury
bond, there would be competition
mortgage money which these
institutions
have
been
making
available.
Commercial
banks
with
the
tightening policies in op¬
eration, would not be very mucn
interested
in
long-term Gov¬
a
long-term
Treasury bond, at this time would
ernment
a
bond.
have to have
a
Also
high enough
rate to make
those that would
to
cou¬
it attractive to
be in
position
purchase them. This brings up
a
U. S.TREASURY
coupon rate to make such
a
in
an
issue
real success.
near runa¬
mortgage
borrowing
spectacular rise in stock
are
There
boom
phenomena
that
Harold
man
policy
covers
"active
gear
ly,
the
Dr.
extreme
some
easy
to make the
ures
cessful.
Jules
I.
impelled
Bogan
A
was
their
aggressive tight
ill-timed
meas¬
policy
sue-
for
this
reason
very
resort
to
a
pol-
money
and
the
first
of
structure
of
from
and
which
New
the
portion of New Jersey.
Other
tee
be
are:
members
Ernest
of
W.
the
commit¬
Borkland, Jr.,
of
Tucker, Anthony & Co.; John
French, A. C. Allyn & Co., Inc.;
Philip H. Gerner, George D. B.
Bonbright & Co., Rochester, N. Y.;
one
S.
to
another with
disturb¬
ing consequences to business.
In
ri-
Charles C. Glavin, The First Bos-
gidity imposed upon credit policy
ton Corporation; Henry Holbrook
by
££je'coM^dM^Wtt^W
departing from the
the
pegging
security
prices,
excessive
of
government
the
Federal
Re-
Nix!
c.
Ralph C. Sheets, Blyth & Co., Inc.;
authorities
were
the
cer-
dency
to
policy
in
resort
the
display
to
name
a
of
"flexi-
bility."
and W. Enos
Wetzel, W. E. Wetzel
& Co., Trenton, N. J.
na¬
in
reasonably
underlying
industry and finance
strong, low interest rates and
are
ready availability of credit
STATE, MUNICIPAL
prove
to be powerful stimulants indeed.
so
Most
in 1927.
so
was
It is proving
and
now.
easy
striking is
money
the
impact
building
upon
of
REVENUE BONDS
and
mortgage borrowing.
Outstanding
real
debt
estate
mortgage
quarter
period
for
available,
of
1954,
which
in
the
statistics
registered
fully 40% greater than in the
the
more
significant
the liberalized FHA
terms
surance
National
went into effect
that
their
cor¬
This
BYRNE
because
and
PHELPS
Incorporated
mortgage in¬
provided
Housing
are
increase
an
responding period of 1953.
is
the
latest
Act
only
on
by
of
1954
Oct. 1,
impact is not yet
44 Wall Street
the
New York
.
.
5, N. Y.
so
re¬
Telephone DIgby 4-2410
Teletype NY 1-1474
flected in mortgage statistics.
STATE, MUNICIPAL
and
UNDERWRITERS
PUBLIC REVENUE
SECURITIES
ORIGINATORS
-
UNDERWRITERS
BROKERS
-
DISTRIBUTORS
OF
DISTRIBUTORS
NEW JERSEY MUNICIPAL
CORPORATE
AND
and
MUNICIPAL
AUTHORITY REVENUE OBLIGATIONS
SECURITIES
Aubrey G. Lanston
FOSTER 8c MARSHALL
Investment Securities
& Co.
INCORPORATED
15 BROAD
ST., NEW YORK 5
WHitehall 3-1200
231 So. La Salle St.
BOSTON 9
ST 2-9490
HA 6-6463
Stock
New
York
Stock
Exchange, American
Exchange (Associate)*, Chicago Board of Trade
820
SECOND
AVENUE
SEATTLE
4
45 Milk St.
CHICAGO 4
MEMBERS:
Teletype SE. 482-673
Portland
•
York
greater
Jr., John J. O'Kane, Jr. and Co.;
the
balance and
good
swinging
can
Connecticut
of
excessively
1954
When
is
economy
policy
committee
States
Langley & Co.; Allen J.
Riter & Company; John J. O'Kane,
only too effective, at least in
directions.
reverse
the
of 1953 * wide and abrupt swings in credit
measures
half
Credit
flexible,
serve
accumulates that
now
easy money
now
C. Johnson
ten-
icy in the spring of 1953.
Evidence
too
take
money
new
major
to
may
and again overdo restraining
extreme
felt
of
and
ease,"
measures.
au¬
thorities
the
the
of
dangerous
these
of
Robert
of
Securities Dealers,
Inc., it is announced. Robert C.
Johnson, of Kidder, Peabody &
Company, was named Vice-Chair¬
however,
danger,
a
ties, recognizing
Unfortunate-
the
is
H. Cook
Association
that the Federal Reserve authori¬
time.
the
question as to whether the
Treasury wants to go that high in
recent
for the future.
omy
began
that
third
credit
of
justification
addition, the
new
a
pon
the
prices
recession
ness
of this
the
busi¬
to be
as
In
rise
consequences
which
District
monetary policy of "active
com¬
funds
well
upturn
removes
threaten the stability of the econ¬
in
the
bat
This
as
a
and
Au¬
thorities
of
that non-bank investors would be
for
way
mid-year of
•
business
Federal
tional
be
r*
by
Reserve
at
The
ease."
was
adopted
the
Committee of the National
recent business upturn
months
ap¬
active
tain
maturity
would
their
econ¬
of
impending
there
monetary
make
Says
The pol¬
tion should be floated to meet the
that
them
are
the changed
the
in
a
the
of
and
Accordingly,
the
with
the
the
Spencer,
has been
monetary policy of "active ease."
a
in
sectors
some
icy
attractiveness in these issues.
same
of
money
Bonds
tightening in interest
rates, there is not going to be the
position to cut down the avail¬
ability of bank credit, and this
operation will have an effect upon
a
ket
conditions
Likewise, if the savings banks,
insurance companies, and pension
The monetary authorities are in
and
boom
pearance
omy.
longerterm Treasury obligations will be
on
their
own,
because
with a
change
in monetary policy al¬
ready
taking place, which in¬
market
mar¬
Long
intermemiate
seems
money
And
reversal
ease
With
the
for
cards
future.
ob¬
Under Pressure
even
water,
defensive attitude
in
be
mediate
kets
above
a
Government
some sectors.
policy, from active ease to re¬
straint, is under way as unstable
of
maturities
ment.
its
funds
and
the
now,
Another
of
of
reversal of monetary policy from active
as unstable boom conditions make
a
justification for
removes
when
liquid
investment, namely
near-term
"
A very
is
most
Intermediate
long-term Treasury
a
because
the
decrease
a
a
ligations.
longer-term
still on the de¬
not only is the
because
about
the
safest form of
mone¬
market for these issues very
also
be
shorter-term
there
as
the
*
but
issues,
and
governments are
the
will
there is uncertainty in the money
availability of bank credit.
middle-
for
Treasury
*
The
there
sure,
13
chairman
restraint, when and
their appearance in
be
stages,
the
to
ease
No.
H.
Cook,
Company,
&
elected
Professor of Finance, Graduate
in it.
To
upon
investors
equilibrium
ever
mainly responsible for the action
'
that
mean
Telephone MU. 1900
Spokane
•
* 25
Eucene
Boland, Safifin & Co.
Established
20
PINE
ST.
NEW YORK 5, N. Y.
Bell
1920
TELEPHONE
WHITEHALL 3-3414
System Teletype—NY 1-535
26
(282)
Burns
Harbor, is being set
the northern part
Public
Utility Securities
eventually become the largest inland seaport in the world. Work
also
is
million
Northern Indiana Public Service Co.
Public
Indiana
Northern
Serv¬
plant,
ice supplies gas and electric serv¬
ice in 28 counties in the northern
the
of
company
or
state. Through
its predecessors
and
70
the world, it is not
by any one industry.
About 9% of the company's reve¬
gas
nues
5%
44% from
electric
integrated
225,000
system
network
is
gas
is
munities
The
runs
furnished
from
service
from
fully
some
climatic and
com¬
eral
62
oil
re¬
affected
same
season.
unknown,
are
conditions
adverse
never
com¬
condtions. Gen¬
failures
cipp
produce
products, grain
under excellent
soil
since
York
all
With
have
in
crops
so
the
diversified
farm
expressway.
The company
final
Chicago
the
area
ex-
not
is
usually regarded as rapid growth
territory.
Revenues
have
infrom $12 million to $68
million
1934, and
since
in
the
income
Net
than
postwar
has
tenfold
1934,
since
in
every-
and
but
year
1944, when 91c
has
nation's
the
of
the
state
in¬
one
S.
that
net
a
businesses
Recent
Department
show
had
commer-
states.
U.
one
in
gain
1954
of
compared
ranks
states>
but
28th
to
increase
its
14th
the 48
among
Stanley
in
the
1954
was
states
pleted
of
one
has
com¬
greatest
years
Works
the
expansion in
its
111
A
year
his-
tory.
During 1954 $3,000,000
to
modernize
and
Company,
_
j
*
i
▼
i
tion
*
»
Factory Insurance Associa¬
has announced plans for
construction of
foot
square
Hartford.
a
new
the
80,000
office
building
in
building is sched¬
The
uled for completion in
1955 at an
estimated cost of about $2,000,000
will
be
Insurance
lease.
occupied
under
The
by Factory
long-term
a
Company
was
spent
Brass
_
*
The
and
The
•
persons,
a
the
among
number of businesses in
L
«
Inc. from its present Long Island
location to Bristol.
The present
plant employs approximately 200
900
decline of 2000 for the New Eng]and States.
Connecticut's population
sidiary Accurate
Tu
leading
industrial
Commerce
of
earned.
was
,
of
more
nearly tripled since 1945.
The
share
earnings have
creased
the
studies
period.
increased
since
+
of
cial and
than
more
Thursday, January 20, 1955
.
Connecticut Brevities
Connecticut continues to be
new
enjoyed
creased
employs
about 300 in its home office,
*
increase
Directors
*
of
*
Hartford
Fire
In-
* e. C^pa, yM1
|£e c° ^~r. 5; surance Company have voted to
s*np st?£ milJ at Ne.W Pr\tam by recommend to stockholders at the
about 40% As part of its pro- annual meeting on Feb. 25 that
.
$2.40
was
about
$2.45 is estimated for 1954.
output and with so many
different kinds of manufacturing;
Indiana is in excellent position to
in
in
reported
President
the
to
.
has
the fact that
mg
a
on
northern
the
be
cellent gains in earnings consider-
line
Ohio
New
a
$280
a
across
will
in
systems.
12,000 miles
gas
of
area
the
in
two
farms
livestock, dairy
poultry
road
link
doubled
Moderate-sized
munities and rural territories, plus
some
wholesale
business.
Gas
service
from
3%
and
and
a
serving
in 229
customers
derived from steel plants,
fineries.
service.
The
are
from other primary metal in¬
dustries,
56% of revenues are derived from
electric service and
in
dominated
Approximately
years.
cement plant
the
largest
oil
of
toll
on
Indiana, which
largest
one
refineries
the
service has been supplied for over
100 years and electric service for
about
the
progressing
.
.
in
up
of the territory
between Gary and Michigan City,
and
it is
forecast
that
it
may*
By OWEN ELY
part
The Commercial and Financial Chronicle
1
Mitchell
1953
and
in-
the Company sold its hot-
gram,
in net income of about 5%
crease
roiicd
1955
expects
whether
but
an
this
will
east to
the Illinois line on the take
fullest
advantage
of
the benefit share earnings
depends
west, extending some 45 miles chemurgical research being car¬ somewhat on the character of the
along the southern shore of Lake ried on at Purdue and Indiana financing decided upon this sumMichigan. Gas and electric serv¬ Universities.
mer—whether the security offered
ice is furnished in Gary, Ham¬
The company's service area has will
be
a
convertible
preferred
mond and East Chicago; gas only a
population estimated at 1.3 mil¬ stock, regular preferred, or comin Fort Wayne and South Bend.
lion, about 23% larger than in mon stock
Smaller
cities and
towns, rural 1940. The city of Gary is growing
Dividend
policy
appears
to
communities and lake resorts are even
faster, with a 13% gain in
aY01mub0Ut an average 70% payfurnished one or both services.
the last four years. Future com¬ out. This might warrant a modest
Many large and diversified in¬ pletion of the St. Lawrence Sea¬ increase from the present $1.60
dustrial plants are located in the way is expected to begin a new rate,
which represents about a
Calumet region of northwestern era
for
cities
in
the
Calumet
Zj pay
'
The company is continuing its
Indiana, known as the "Workshop region. Development of terminal
of America." They include manu¬ facilities along the southern shore exnansion nroeram
soendine
facturers
of
steel,
automobiles, of Lake Michigan, plus the pro¬ about $54 million in i955-56 It
automotive
and
has
a
substantial
airplane
growth
parts, posed widening and deepening of still
electric motors, farm equipment, the Calumet Sag Canal, will per¬ potential
in
house-heating
gas
chemical,
copper
and
rubber mit barge traffic from the Missis¬ business—10,000 more customers
products, oil refineries, etc. While sippi to connect with ocean-going can be taken in 1955, with more.
the area
has
the
largest steel vessels. A new industrial city, storage gas becoming available
•
•
-X
strip
formed
miH to the newlyNortheastern Steel Cor-
poration.
As
step towards furStanley purchased The H L Judd Company,
the natioirs oldest drapery hardwar manufacturer.
ther
a
diversification
*
*
*
Rothwell, Inc.,
located in Bolton, has
prespur-
chased
a steel and concrete plant
Somers that was formerly oc-
jn
cupied by National Printing Company.
The building will be re-
modelled for
SDef.jal
nartimmrlv
in
fPecla\macninf.s' Partlculdrly in
the
£leld'
to
that
in¬
author-
present
the Di-
their
25%
a
also
was
Directors
the
is
announced
It
the
sten
deciare
dividend.
be
stoLSers,
have
tention
capital
$20,000,000 to $25,-
this
If
by the
rectors
in-
stock
announced
hope to con$3 00 dividend
rate after the stock dividend. Recent
stock
dividends paid
Company
have
been
by the
33V3%
in
November, 1949 and 25% in April,
1953.
*
in production of
use
marhines
from
QOO ooo
ized
tinue
Hallin and
ently
authorized
creased
A
npw
*
*
lVnrlWQcfo™
rnrnnanv
company, Northeastern
«■
«*
Steel
Corporation,
recently
was
formed to purchase at
packing
of
cost
a
$4,000,000 from The Stanley
William L. Gilbert Clock Cor- Works its hot-rolled strip mill in
P01,3^0!* of Winsted is presently Bridgeport. The new Company
ln
Pr°cos of adding new plant has sold $6,000,000 of 4^2% First
sPace to permit employment of Mortgage Bonds and will raise an
from
the
Herscher
Dome,
and about
300 more persons.
The additional $9,200,000 through pubthere is a potential of 50-60,000 Company has recently commenced lie sale of 92,000
units at $100
new
customers when enough gas production
of a 10-key electric each, consisting of $50 of 6%. reg¬
is available. The company is well adding machine for General Comistered Debentures, 10 shares of
with
situated
Laird, Bissell & Meeds
DU
PONT
BUILDING
—
WILMINGTON
TELEPHONE
MEMBERS
NEW YORK
OTHER PRINCIPAL
STOCK
in
fuel
8-4241
STOCK
&
EXCHANGE
&
BONDS
—
—
Mitchell
would
COMMODITIES
be
Christiana Securities Co.—Common & Preferred
Wilmington & State of Delaware Bank Stocks
OFFICE
—
120
Telephone—BArclay 7-3500
PHILADELPHIA
BROADWAY
Bell Teletype NY 1-124349
OFFICE
—
Machines
Corporation
Indiana
been
shares
of
that
the
35-36%
for
some
electric
various
44 WHITNEY
Admit Lurie &
2-6151
On Feb.
clocks
electrical
as
and
well
other
in
ners
as
all Local
York
Securities including
been
Syndicate Dept.—Martin Fenton, Mgr.
t
&
Municipal Bond Dept.—O. Chester Jones, Mgr.
e
the
\
.'I;
the
kets
-
'
CHAS. W. SCRANTON
&
CO.
Exchange
.j
New
York
—
—
REctor 2-9377
JAckson
7-2669
/
Teletype NH 194
r.
m
for
years
Sidney
statis¬
B. Lurie
specializing
in
general
Francis I. du Pont & Co.
in¬
Members New York Stock
Wi
Alsiyne, Noel
INVESTMENT
To Admit J. A. Russell
Wall
Alstyne, Noel & Co., 52
Street,
New
York
City,
members
Del. Trust BIdg.
of
the New York
Exchange,
Telephone 5-6241
WL 486—Private Telephone to New York Office
9-4900
,
securities
depart¬
Van
Broadway—Telephone BOwling Green
in
New York and New Jersey Mar-
Web¬
Van
WILMINGTON 99, DELAWARE
Telephone 6-8171
principally
Jackson
Exchange
oj Trade
Commodity Exchange, Inc.
Bell Teletype WL 89 &
New York Office 61
sale
Exchange
Principal Security & Commodity Exchanges
MEMBERS:
Nemours Bldg.
England States and eastern
Hartford
dustrial securities.
COMPANY
Board
for
New
has
Curtis
ment
American Stock
bars
with
d
tical
Chicago
bar
of
M
many
in
Dept.— Hugh C. Wallace
Exchange
bars
cold-drawn
and
associ-
ber,
Trading Dept.— Neill O'Connell, Mgr.
Midwest Stock
strip
Ex¬
Lurie
Paine,
Exchange
and
hot-rolled
steel
City,
change.
a
Hew York Stock
shapes
finished
alloy
the New York
DELAWARE BANK STOCKS
AND
of
and
New Haven
New
Stock
LAIRD
tons
carbon
\'r'
CHRISTIANA SECURITIES
Research
QOO
tim-
connecticut
Lipsky
Broad¬
members
in
to
permit production of about 215,-
1
Jos-
way,
Active Markets
The
Members New York Slock
ephthal & Co.,
LISTED and UNLISTED SECURITIES
8 Vs.
wju spend about $9,000 000 to ex-
3 shar?1 Pr°dUC" Pand and div^ the P^nt
Primary Markets in
Sidney B. Lurie and
Robert Lipsky will become part¬
120
eight-year
15.
Josephlha! & Go. to
AVE.; NEW HAVEN 6, CONN.
TELEPHONE LOCUST
3
common
stock at
the
electric
largest
and
Company
to
Telephone—LOcust 7-6226
DAY, STODDARD & WILLIAMS DIVISION
stock
new
stock
common
tlon als0 lncludes spring wound
an<^
goal.
has
common
"^ssary funds wararnts to purchase
ing mechanisms
utility whose stock was unlisted.
The management has now decided
to list the stock on the Big Board,
The
Bristol Brass Corporation
possibly in the near future. The has announced
plans to move opstock
has
been
selling recently
around 32 to yield 5%. The price- erabons of its wholly owned subearnings ratio is around 13 com¬
pared with a general average of
over
LINCOLN-LIBERTY BLDG.
feels
of
weie obtained by sale of 150,000
plant.
reasonable
a
Northern
SPECIALISTS IN LOCAL SECURITIES
YORK
electric
company's equity ratio has
time
NEW
puting
tboeeahmde3a2S|d at° nre'senC Presl- PUbliC at $2 °°
EXCHANGES
dent
STOCKS
the
The
COMMODITY
off-
to
carf°also use°it "economicaliy'as NeW Y°rk/
DELAWARE
99,
respect
_
on
James
A.
Russell
in
firm.
the
»
ager
Feb.
Mr.
UNDERWRITERS
BROKERS
IN SECURITIES
AND
COMMODITIES
One Wall Street, New York 5, N.Y.
partnership
Russell
is
man¬
of the firm's retail sales de¬
partment.
•
DISTRIBUTORS
Stock
1st will admit
to
DEALERS
62 Offices from Coast to Coast
mz
Number 5396
Volume 181
.
.
The Commercial and Financial Chronicle
.
(283)
The
British Reaction to the
extent
terests
which
affected
British
in¬
J. S. Barr & Co. to
directly
by
depreciation of dollar securi¬
the
ties
Wall Street Setback
to
are
is
relatively moderate. It is
insignificant fraction of its ex¬
an
is not so much the material effect
Noting the sharp fall in American stock prices in the first
week of the year, though
pathetic slump
holds
a
is not
reverse
in Britain,
sequences
a sym¬
has
though
it
have
effect.
Wall
in
a
would
much
the
on
inevitably
and
provoke
reaction
experienced in Wall Street in the
stantaneously
first
in London in the
week
year
surprise
complete
a
the
of
came
London.
In
those
to
danger
of
would
not
Even
with
as
best
the
itself,
a
same
the
railway
a
have
of its
the
offset
contacts,
were
have
the
stoppage
fects of the setback in Wall
ican
its
of
Stock
London
for
ef¬
closely
trend,
were
not
n
ex¬
pecting a n ything of this
The
kind.
shock, and the
alarmist views
United
has
don
in
having
slump
provoked
London.
the
on
-
a
to
60%, such set¬
back might not have occurred at
financial
So
at any rate it would have
been moderate. There was nothing
in the general
from
sympathetic
London
change, it did not
all,
in
or
Ex¬
check its
reverse
Stock
even
economic situation
United
the
sidered
upward trend.
the
eleventh-hour
settlement of the railway dispute
to
justify
major
of Stock Exchange
values.
States
admittedly
the
the
slump.
a
But
during
even
critical
day when the fate of
negotiations was in the bal¬
ance, the
ceived
unfavorable advices
from
prevent
in
went-
York
did
may
be
Street,
to
the
of
the
setback
in
and
.Wall
this
has been
contrary
preachings of prophets of
gloom, who keep on saying that
a
collapse
of the
Wall
Street
per¬
Street
too
was
it
far,
did
intervention.
A
risk
of
self-aggravating
is
it
But
producing
a
considered
not
London
likely that the reac¬
tion would go sufficiently far tci
American
seriously.
business
endanger
covery
the
In
States,
not
absence
recession
ness
a
new
the
Wall
a
Street
to
produce
likely
nounced
of
in
re¬
busi¬
United
reverse
too
is
pro¬
in Britain.
consequences
ley,
the
S.
Barr,
and Robert F. Meffert,
Exchange members, to part¬
Exchange
nership.
fert
Mr. Burley and Mr. Mel-
have
been
active
as
Terrill,
Secretary-
On the
lie,
same
limited
date, John E. Les¬
partner, will become
general partner.
.
field, Ricliards Si Co.
ESTABLISHED 1908
Underwriters and Distributors
Of
Municipal & Corporate
measures.
Securities
Disregarding the Wall Street
factor, the chances of an Ameri¬
can
business expansion in
1955
are
considered
to
be
distinctly
terialize
Should such hopes ma¬
rises
the
,
i
in
1556 Union Commerce
equities
CLEVELAND
at present to'
have been exaggerated would be¬
which
may
appear
of
is
Street
Teletype—CV
this
change,
longed
Wall
that
on
unlikely.
Stock
London
Ex¬
the fears of a pro¬
exaggerated setback in
once
or
Street
railway
con¬
spiral inflation, is
likely to produce a pronounced
effect.
The
acceptance
of the
wages
demands of 400,000 railwaymen
is likely to encourage
further wages demands. There is
no
longer any talk in industrial
tinued
Dealers
Distributors
dispute,
foreshadow
that
terms
Underwriters
allayed, the set¬
are
the
of
tlement
on
Telephone Main 3776
Teletype—CI 197 & CI 150
the
that
is
view
appears
the
for
As
far,
London
balance
174
should it
would react on
and
prospects.
powers
the
But
Bldg.
CINCINNATI 2, OHIO
setback,
too
proceed
earning
risk
the
course
Wall
1707 Union Central
Bldg.
14, OHIO
Telephone PRospect 1-2770
justified by improved earn¬
ing powers and prospects. There
come
■
i
■
.
wages
need for
circles about the
of
a
Municipal and Corporation Securities
trial
between labor and
capital.
While
employers
will
stand firm against any efforts of
workers
to
interfere
with
the
DEALERS
SECURITY
strength
—
PROMPT
of
resistance
The First Cleveland
in
the line
demands
wages
least
firms,
their
of
management
face
of
SPECIALIZED
is expected
be the rule and refusals at the
Member
dealers
in
Pittsburgh
-
Chicago
-
Cleveland.
Exchange
National City E. 6th Building
risk
prices and
higher
profits
higher
of
period
another
New York
wages,
-
Corporation
Stock
CLEVELAND
14
This means that we are in
tions.
for
clear for
Midwest
to
of strikes will be the rare excep¬
CLEARINGS
We
higher
Telephone PR 1-1571
Teletype CV 443
-
CV 444
higher
Stock
justifying
Exchange quotations.
Address
■EG
U
FAI
Loans
and
Securities
De¬
Off.
partment, Teletype:
Ohio's
Largest
CV 240.
J. C. Wheal & Co.
Bank
To Bo NYSE Members
&
Co., 920
Jan.
27
become
James C. Wheat,
firm's Exchange
members Of
Central Natl. Bank of Cleveland
Cleveland
Builders
Supply
Cleveland
Trencher
Company
Jr. will hold the
Cleveland
Trust
membership,
i
Cook
Coffee
Diamond
Partners
are
James
C.
Wheat,
Stevens, L. Gor¬
Jr.,
Walter, Woody & Heimerdinger
William A.
don
Miller, Jr., Franklin C. Tiller,
and
partners;
than
403 DIXIE
John
TERMINAL
Glover
B.
III,
general
James C. Wheat, Jona¬
George
Bryan,
MIDWEST STOCK
Exchange.
Stock
York
New
the
MEMBER
EXCHANGE
Main Street, on
East
will
MERRILL, TURBEN (r CO.
C. Wheat
Va.—J.
RICHMOND,
MUNICIPAL BONDS
S.
Bernard,
Glass
Fibers,
Co.
City Bank of Cleveland
Gray Drug Stores, Inc.
Penton
Perfection
Harshaw
Chemical Company
Union
U.
Higbee Company
Company
Ohio Leather Co.
M. A. Hanna
Company
Manufacturing Co.
Crankshaft
C. A. Olsen
Inc.
Inc.
Welding & Engineer. Corp.
National
Ohio
Company
Cement
Heintz
&
Natl. Screw &
Company
Portland
Jack
Lewis
S.
Statistical Information Available
Manufacturing Co.
Publishing Company
Stove
Company
Bank of Commerce
Truck
Lines,
Inc.
Upon Request
Jr., and John G. Befnard, limited
CINCINNATI 2
indi¬
vidual floor brokers.
a
purchasing power of the
public, * whether it is
derived from current earnings or.
capital gains, is considered to be
a
much more important factor in
the balance of payments position
than the
official
policy of the
favorable.
partners.
I
1612 Union Commerce 31dg.
Alfred H. Caspary
Alfred
H.
Caspary,
A. H. Caspary
on
Jan. 7th.
partner
on
Jr.
both
The
this always
as
and
the
effect.
unnecessar¬
Wall
such
for
call
cumulative
the ultimate
vigor
in
going
sudden shock such
in
Considering the
extent
not
was
Even though the
rise
carries
effect, London has certainly with¬
stood the first shock remarkably
well.
sistent
re¬
quotations.
Whatever
ily drastic.
not
almost universal rise
an
London
New
quarters
authorities in raising cash
Street
6
many
that the step taken by the United
margins by 10%
Jan.
con¬
a
long way to¬
wards cancelling out the adverse
impression caused by the Wall
on
is
States that
here
It is felt here in
Admittedly,
hold
Exchange,
Amer¬
goods..
on
imported
drastic anti-boom
far
impress
to
opinion
States,
failed,
S.
the
Stock
,
Street,
it not for the fact that Lon¬
50
of
York
Co., 36 Wall Street,
City, members of the
Feb. 1 will admit Chester C. Bur-
York
Officers
&
York
New
acquire
New
Joseph
New
Bank
Treasurer.
ments from
g
the
however,
will
Ernest
about it in the
i
will
1
the
Bache
membership, Vice-President; and
effect
expressed
been follow-
Dr. Paul Eiu/ig
be
opinion refuses to take a
Washington Administration
pessmistic view about that set-' towards
imports,
back
itself.
Comparisons
with
i It
is assumed, however,
that
1929 are dismissed here as sheer
the American monetary authori-v
unwarranted defeatism. The view
ties will do their utmost to avoid!
is strongly held that the reverse
causing a lasting setback in Wall
is attributable to technical causes
Street. > Indeed it is hoped thaL
and not to any inherent weakness'
the
experience of the January
of the basic position.
It is felt
slump will serve as a warning
that, had it not been for the in¬
against the application of unduly
crease
of
cash
margin require¬
who
in
Barley and Meffert
&
a
Exchange
possible effect
demand
who
uneasiness, not
account
on
with
American
of
American
and
in¬
sense.
removal
viewed
is
Street
will
Barr
President; E. Van Dyke Cox, Jr.,
the possibility of
certain amount of
so
as
boom
fears.
>
Feb.
on
S.
Savings
Exchange.
firm
continued downward movement
a
Says outlook for higher wages,
higher profits in Britain justify higher stock quotations.
LONDON, Eng.—The sharp fall
such
Nevertheless,
psychological
higher prices and
may
Stock
Y.—J.
Inc.,
membership
gone a long way towards
now
allying
business depression in the U. S.,
likely to produce pronounced con¬
a
The absence of
immediate reaction in London
an
unexpected, did not provoke
that, in the absence of
Wall Street
Building,
Wall Street slump as its psy¬
a
chological effect.
-
the London Stock Exchange, Dr. Einzig
on
Company,
of
By PAUL EINZIG
Bache & Co. Will Admit
Acquire NYSE M'ship
ITHACA, N.
tent in 1929. What has been feared
27
Cleveland
of
& Co,, passed away
14, Ohio
Tel. MA 1-6800
Teletype CV 67
23
The Commercial and Financial Chronicle
(284)
President's
expenditures
Estimates total
billion,
or
nonessentials and by doing neces¬
Budget Message
fiscal
for
1956
year
$62.4
at
$1.1 billion less than 1955 estimate, and places
President Dwight D.
covering the
fiscal
year
1956.
As usual the
message was accompanied
by a
his
burget
detailed
message
statement
the
of
budget
of the
aggregate items of actual and esstimated
receipts and expendi¬
and
estimates,
a
resume
tures.
ing this past
the fact that
the adjustment from
Bud-
constituting Part A,
get Message,
follows:
Aided
of
the
United
I
Budget of
you
the United
today
States
Government
the
for
adjustment, while difficult for
some, have not been
serious on
whole.
free
artificial
of
the
will
Eisenhower
second
major
apparently
uncertainly
ahead, we
progressively increase
prosperity and enhance our
also
Total
1,
1955,
re¬
under
rise $1
of
production
in¬
anticipated,
expect budget receipts to
billion
$60
1955, to
over
billion
the
in
On
a
fiscal
the basis of these estimates
will
be
from
reduced
will
1956
are
estimated
now
at
part
recommendations
government
for
activity.
for the current year.
the
Administration
All parts of
will
continue
to work toward further reductins
during
the
year
the
eliminating
continue to progress toward a
Budget Policies
Three
broad
framing the budget for the fiscal
year 1956.
First,
less
and
of
price¬
our
political
liberty
personal freedom against at¬
tack from without and
ing
from
within.
bring about
to
en¬
couraging results — cessation of
fighting, new and stronger alli¬
lessening of ten¬
ances, and some
sions.
the
is
The
growing
key
a
outlook
factor in
to
build
must
at
the
its
the
for peace.
friends
improved
We must
this
con¬
strength.
time
same
of
strength
United States and
traditional
We
preserve
initiative
people.
the people can do better for them¬
selves, and
undertaking
by
on
ernment action is necessary.
Thus,
people will be able to keep
their earnings to use as
more
of
wish.
I
they
Second,' the
fare
and
encourage
the
econ
t
As
LYNCHBURG, VIRGINIA
LD 39
TWX LY 77
far
should
steps
partnership with
government
STRADER, TAYLOR & CO., INC.
Recommended
new
By holding
the
level
of
new
authority lower than anticipated
revenues, we can continue making
toward
progress
balancing
Likewise
of
long
as
levels of government spending.
In the fiscal year 1956, net bud¬
get expenditures
62.8
be
$11.9
The
record
estimated to
are
billion
spending in
authority to incur ob¬
in
below
the fiscal
shows
new
within
the fiscal
a
secu¬
in
the
for all other
although
programs,
total,
I
1955.
year
reduction
authority
this
recommend¬
I
am
of
of
new
that
the
reduction
authority
for
in
1955
major
our
security programs below
the amount enacted for 1954 was
possible because the military
vices improved their supply
1954
below
low
on
in
the
Jan.
tional
by
$6.5
level
estimated
billion
for
9, 1953. For 1955,
reduction
estimated
now
Ad¬
government
1953, and $10.1 billion be¬
of $4.3
and
lion
is
the
present
an
1954
addi¬
billion is
still
another
1956
is
still
5% months away.
We shall continue working to im¬
prove
efficiency
and
Continued
existing stocks and reduc¬
to
on
reduce
page
E. N. Anagnosti
Underwriters
Vincent B. D'Antoni
be
state
local
and
and
Distributors
—
Louisiana and
Dealers
especially invite
inquiries in:
your
Mississippi Municipals
Belle
Isle
Canal
Corp.
Bank
Oil
Mississippi
Trust
Shipping Co.
New Orleans Public Service Inc.
New Orleans Bank
(Preferred
South
Stocks
and
Shore
Southdown
Common)
Oil
Sugars,
Standard Fruit &
(Preferred
Inc.
Steamship Co.
and Common)
SCHWEICKHARDT & COMPANY
MEMBERS NEW ORLEANS STOCK
809 HIBERNIA
enterprise system to keep
employment high, to create new
•
jobs, and to raise the standard of
living. We must broaden the op¬
NEW ORLEANS
Teletype NO 344
'
EXCHANGE
BUILDING
:
12, LA.
Tulane 6461
&
Tulane
8812
con¬
and enjoy the fruits of its
productivity.
omy
1955
1S32
Third,
concern
must maintain finan¬
on
Preserving the value
is
matter of
a
to each
would
one
LYNCHBURG, VA.
we
cial strength.
of the dollar
of
advocate
a
VIRGINIA
Telephone *-2821
special tax
the widows and
•
W. VA.
incomes.
like
tax which hits these groups
a
Corporate Stocks and Bonds
Municipal LY *2
Municipal & Corporation Securities
This Administration
hardest.
made
a
Yet inflation acts
penditure
with
a
reductions,
judicious tax
Specializing in
v
has
stable dollar and economy
LOUISIANA and MISSISSIPPI
positive
policies from the top down.
Corporate LY €2 & (3
Dealers
orphans, pen¬
sioners, and working people with
in government operations
N. CAR.
Distributors
—
no
fixed
CaMJtync/ilrWij
Underwriters
vital
Surely
us.
Ex¬
together
Municipal Securities
program, ef¬
fective monetary policy, and care¬
Municipal Bonds
Unlisted Securities
ful
management
debt, will help to
cost-of-living
achievement
—
of
the
assure
public
a
stable
continuing
of
the
past
White, Hattier & Sanford
our
two
Whitney Bank Building
NEW
Underwriters
& Distributors
years.
A
liberal
toward
the
welfare of people and a conserva¬
tive
ORLEANS
I
attitude
approach to the
use
79
George J. Bourg
We
—
for
private
enter¬
prise.
We must do our part to
provide the environment for our
free
Erwia R. Schweickhardt
tribute to the growth of our econ¬
nc
for
only
half completed and the beginning
of
possible,
taken in
as
portunity for individuals to
SCOTT, HORNER & MASON
bil¬
estimate
The fiscal year 1955 is
1956.
ser¬
pro¬
cedures, which resulted in larger
of
spending
1953.
this
reduction in spending of $1.1
national
use
cut
actual
year
recom¬
mending selective increases.
Part
ministration
is $2.4 billion great¬
proposing
total
am
major national
programs
than
er
am
our
the
the
as
new
authority is less
than expenditures, we
are
con¬
tinuing on the way toward lower
72.2
Actual
ligations which I
an¬
Budget Expenditures
estimated,
9, 1953
Jan.
ing for
the
and the esti¬
mated expenditures for that
year.
revenues
amount
80.3
new
con¬
unex¬
authority
for 1956 is less than both
ticipated
omic
actions
necessary
themselves.
these
»
total
1955.
year
must
government
growth with constructive actions,
but only where our people cannot
Retail Distribution
in
(Assets)
do its part to advance human wel¬
i.
downtrend
are
more
pended balances will be less rapid
in the future than in the fiscal
••••;.
■
take
n
years
their way down to
levels
and
the
on
a
partnership basis, wherever pos¬
sible, those things for which gov¬
Trading Markets
prior
now
of
in¬
ity by continuing to take govern¬
ment out of those things which
Utility Stocks
balances
to all govern¬
the
will
We
of
the scope of private activ¬
crease
Local Industrial &
unexpended
un¬
accumu¬
liberty at home by fostering
American
It
The
funds appropriated
ment agencies in
budget.
$91.4
undermin-^ government
Our* efforts
have helped
date
The
rity
must defend
we
heritage
the
Securities
58.6
year
(in millions)
As
large backlog of
of
considerations
national policy have guided me in
our
Municipal Bonds and Corporate
recommended.
than
more
fiscal
New authority
tu incur obligations
1954:
balanced budget.
tinue
by
57.3
the
Fiscal year:
expenditures and receipts, the
deficit
for
1955,
1956.
of
1956 is $1.3 billion
amount
year
and
currently
as
lated
obligations for the fiscal
$4.2 billion from 1954.
employment
can
the
appro¬
authority
new
total
If this is done, and
crease
year
of the
expended balances.
tinued
primarily because of new
requirements
for
our
military
services.
However, it represents
a
reduction of $32.8 billion from
1952, $21.7 billion from 1953, and
present law.
this
on
expenditures
estimated
1956
scheduled for
are
April
on
strong for
be a long
$62.4 billion, $1.1 billion less than
u a-
budget
each
remain
to
to
the
At
reduced.
yeap
Pres.
presents
summary tables and also contains
my
continue
defenses.
Budget expenditures for the fiscal
1 y as re¬
to the
i t
our
However, I am rec¬
ommending somewhat increased
expenditures in particular areas
important to human well-being.
lated
The
of
the
must
we
time
be
policies and
plans for next
year, particu-
s
on
The 1956 budget is based
our
tion.
duction
tax
we
constantly
outlook.
bud¬
fiscal
which
rates
income
corporate
with the other free nations of the
summar¬
a r
live
we
We must be
alert.
Along
welfare.
get totals and
1
1955
excise
presently estimated $4.5 billion in
the
fiscal year 1955 to an esti¬
mated $2.4 billion in 1956.
Thus
our
this
highlights
in which
peace
19532
My recommendation for
priations and other
and
tion
to Incur
Obligations
to incur
stimula¬
How¬
budget.
reasonable
New Authority
foundations,
inflation.
or
insecure peace.
an
must
mes¬
the
war
ever,
period
The'first
izes
the
from
what
July 1, 1955.
sage
present growing
solid
same
,1 956,
which
begins
budget
Our
prosperity has
strengthen
fiscal
of
policy,
the
recommended to the Congress ex¬
tension for one year of present
we
year
part
fiscal
proper
vides
not
world
transmitting to
am
a
is
Congress
States:
the
by
the inevitable dislocations of this
tions
the
To
wartime to
type of economy, a
significant achievement.
truly
the
The text of the President's
a
this
to keep work¬
balanced budget pro¬
discipline essential for
a
wise and efficient management of
the public business.
dissipate our eco¬
strength
through
infla¬
tionary deficits. I have therefore
peacetime
a
ing toward
nomic
successfully made
we
should
we
centers around
year
security. Our econ¬
is strong and prosperous but
omy
The fiscal and budget story dur¬
Eisenhower
Congress on Jan. 17
to
national
our
have shaped
money
Our determination
efficiently.
more
We must maintain expenditures
at the high level needed to guard
expected deficit at $2.4 billion, a decrease of almost 50% from
that of previous year. Advises against further tax reductions
and asks for increase in the National Debt limit.
submitted
things
sary
Thursday, January 20, 1955
...
of their
,
12,
LA.
*
Teletypes: NO 494 and NO 279
Long Distance: 3Q4
and 305
Volume 181
Number 5396
.
.
.
The Commercial and Financial Chronicle
-
tendency of theorists to climb into
ivory tower and confess that
Despite Forward Movement, There
Are Curbs on Business Recovery
to say to his students at Columbia
By MERRYLE STANLEY RUKEYSER
University: "Mine is not the field
Hearst Newspapers and International
1955
with
level.
Service
News
no
free and easy
sight, and remarks "the blue ribbons of
efficient producers and
aggressve
The turn of the year is cheered
by
the
growing
dence
are
that
clearing.
opens
with
upward
in
statistical
the
economic
Nineteen
evi¬
skies
fifty-five
an
trend
business,
and with pros¬
pects for fur¬
ther improve-,
ment.
Wall
is
i
a
1
-
arena
not
feasible.
his
of
come
what
customers
will
For to¬
many
raw
ma¬
terials, and the component parts
from others which go to make
make advance
into
far
the
up
Today he must
budgets for outlays
for
future
advertis¬
ing and merchandising. Today he
Financial transactions spring from
must decide on
style and color
a
reasonable
balance
between
trends long before her Majesty,
willing sellers and willing buyers. the Ultimate Consumer, expresses
Thus, even if there is agree¬ herself at the market place by
ment on the coming trend in the
turning thumbs up for the items
physical volume of trade and the which please her and
thumbs
size of prospective profits, the fi¬
down for all the rest.
<
public
whether
would
had
news
in
the
rise
of
the
divide
the
not
or
good
as
eco¬
been
or
fully or
discounted
last 14
months
in stock prices.
The entry of new
inexperienced buyers to the
perpet¬
and
contro¬
speculative
whirlpool
indicates
the early phase of a transfer of
versial, de¬
plores hedging
holdings
less
to
sophisticated
owners.
qualifica-
Merry,e S"
reduce
to
is
months hence.
day he must order the
will go to
partially anticipated
of
The
mood
be
But, if there were ever una¬
nimity of opinion, the stock mar¬
ket would be utterly deadlocked.
nomic
the
is
sufficiently disturbing to
vide
chronic
all
The
economic
heres
analysis to simple headline terms
than
of whether to
Street
"buy, sell,
or
hold."
life
in
blood
taking
sitting
has
on
no
a
of
finance
in¬
position rather
the fence.
Wall
sympathy for the
Likewise, parents, in counsel¬
ling their youngsters, must come
to
decision
present
a
opportunities Tour
hence
in
various
callings.
to
as
five
or
job
years
professions
Young
and
shortly
couples,
after
marriage, are called to make
choices as to their housing
requirements during an extended
future, when guess work must be
substituted for precise knowledge
as
to
their
requirements
lor
space.
Likewise, young men, in
choosing investments, annuities,
early
penditures for military prepared¬
ness
on
an
appealing
the
assume
his
are
projection, or
into the future
a
decades
future
dependents,
reader;
goods
San
405
Spring St.
ceeded
current
But,
in
MAdison
Francisco
is far
DOuglas 2-2220
of
the
are
restraints
There
recovery.
because
that American
forward
should
tendency in
runaway
it
is
be
on
no
commodity
well
order, starts
on
continued
research
known
H. Hentz & Go.
leading
many
demand
clamoring
there
has
liquidation
sumer or
or
short¬
no
in the mak¬
be
to
been
reduction
commercial
filled,
drastic
no
of
setting the blue ribbons of
will
go
to
This
tina.
tive
efficient
merchandisers.
and
no
free
and
com¬
pro¬
For,
and will
the
serve
in
terest
rewards
the
under
the expanding in¬
American
of
part
securities
investors
Montevideo.
&
in
on
Buenos
The
firm
Co. has, for many
been active abroad, mainly
in Europe; and at the present time
maintains major branch offices
in
Geneva, Switzerland and Amster¬
dam, Holland.
Rogers Co. Adds
(Special
easy
infla¬
to
submar-
The Financial Chronicle)
to
DENVER,
Colo.
—
''
Norman
'*
E.
the staff of
Company, Kittredge
Hipskind has joined
Rogers; &
Building.
in
tionary boom is in sight to bring
undeserved
is
office
managership of Mr. Ralph Tausk,
con¬
ducers and the aggressive and ef¬
fective
com¬
credit.
Long
term factors of high productivity
point to a gradual postwar taper¬
ing off of prices, and in such a
merce
and
opening of
years,
war,
or
war-bred pentup
stock
exchanges, announce the
a branch office at 355
Sarmiento, Buenos Aires, Argen- '
modity
Hentz
no
public-
H. Hentz & Co., members of the
New York
Stock Exchange
and
and
are
all
Argentine Office for
of H.
ing. There is
in
contact.
Aires
and
the drawing board
laboratory,
the
is
industry's capacity
ages
an
*•
*
-
With Hutchinson & Co.
(Special
The Financial Chronicle)
to
PUEBLO,
Rush
is
Colo.
with
—
Charles
Hutchinson
&
K*
Co.,
Inc., Thatcher Building, members
of
the
Midwest
Stock
Exchange.
the
ship
your
on
in
and
to produce is unprecedently great.
shooting
in sight,
of
selling, which is the art
inducing the customer to give
Barring
will
unless you first
And, in spite of all
the pious talk by Lord Beveridge
Talk
5-2621
into
production.
spite
movement, there
DEALERS
DISTRIBUTORS
out.
Corporate and Municipal
contemporary living, with all of
its opportunities and challenges,
Montgomery St.
eaten
were
by the fact that ac¬
tual consumption of some
items,
including basic steel products, ex¬
of "cradle to the grave security,"
Angeles
hand,
on
reduced
prices
of prime
and
from
addition, the inventory
correction, which dampened vol¬
ume
in 1954, appears over.
For
months, inventories, or stocks of
and
will
fit
1955.
Selling
importance,
through
will remain
of
process
less
the
in
come
it
send
Los
and
In
UNDERWRITERS
Gentle
never
650 S.
models
new
continuing boom in construc¬
tion.
The
of
and
In
other.
BROKERS
high
factors.
continue
volume, the rewards will be selec¬
policies
concerning the prospective buy¬
ing power of the dollar, on the
one
hand, and the financial re¬
quirements of the individual and
1920
DISTRIBUTORS
extremely
ginal
elimination
spite of prospects for bigger trade
forecast,
UNDERWRITERS
ex¬
called
which
Established
pro¬
financial
to make current judgments
insurance
and
upon
MITCHUM, JONES & TEMPLETON
federal
priming in the form of
pump
plateau.
academic
possibilities
the
while
clamor
be
.
opinion,
tjons.
used
crystal ball early, and
with an answer as to
up
ually
and
Beard,
prophecy."
the
inflationary boom in
commerce
historian, the
Austin
the end-products.
to
finan-
world
c
Charles
ture
and effective merchandisers."
nancial
Street,
which
crossroads
American
great
The manufacturer must look into
an
Warns there is
A
late
largely unknowable.
near-term global
war
is in
sight, but that the cold war will
no
business, stimulus is coming
such sidestepping of the risks of
from the leadership of the auto¬
making present judgments of fu¬ mobile
industry, with its eye-
upward trend in business, with pros¬
pects of further improvement, there are signs of some insta¬
bility which may put restraints on recovery from the 1953
opens
the future is
But outside the
Prominent economic analyst holds, despite the fact that the
year
an
of
Business Consultant and Lecturer,
Syndicated Economic Columinst,
,
29
(285)
¥
from
of
riskless
a
Securities
adventure.
"guaranteed wage and
future" is sucker
a
guaranteed
a
bait
intended
disalert
to
the
un¬
■
,4(5;y •;
■
'
4.
and.
their nest
to
wary
iH
ways
feathering
i
f
Member Los
•>-
of
rationally
means
.
appraising the inevitable hazards
Angeles Stock Exchange
of
in
living
choice
fluctuating,
society*
a.
free-
economic
Behind
regeneration
the
of
public optimism following twelve
Direct wire
to
New'York and San Francisco
months
the Ei¬
thereabouts of
or
senhower recession which
during the end of the
is
1953
started
of
feeling that the postwar
a
summer
FRIDLEY & HESS
economic readjustment was mild¬
er
in
character
and shorter
in
than
duration
Street',
;
forever
are
Our 26
and
anticipated.
comparing
rea
1 i, t
the decline in
addition,
period
<2
2, TEXAS
Telephone ATwtod 8221
the cost
drastic
fested
the
earlier
fear
deflation,
postwar
-
of
mani¬
crash in prices. The
is motivated not
only by reality and a correct ap¬
by
market
% wmmmmm mm &
Is
infinitesimal, and this
was
has alleviated
complete
Ball Teletype HO
y
of living during the readjustment
provide
HOUSTON
business " forecasters
what had been expected.' In
with
Offices
FIRST NATIONAL BANK BUILDING
Wall
a
place
MUNICIPAL
praisal of the future, but also by
coverage
the
of America's
pictures
things
to
has
growing
been
nes
fastest
would
war
-
minds
men's
The
of
assumption
widely made that businot
1939
or
in
come.
revert
to
the
pre¬
price level, but that
AND
CORPORATE
i
i
U
i
UNDERWRITERS
something akin to the current in¬
area
which has been
flation,
would
endure.
the
prolonged rise in stock prices re¬
flects
First California Company
Members
San Francisco Stock Exchange
Midwest Stock
-
Prleate
300
•
San Francisco
in
an
shakeup
of
the
was
there
depreciated
which is about
dollar in terms of the
In
but
SPECIALIZING IN
addition,
sentiment rests
60 cent
1929 dollar.
cheerful
on
a
1954
financial
the belief that
§1
l!
INDIANA
is
attempt to revalue stocks
terms
dollar,
.
New Yerk. Chieage and etkmr leading Eetterm elrtew
economic
postwar
also
,
Exchange
Montgomery Street
Wire te
,
I/O* Angeles Slock Exchange
Jv<
not only the belief that the
extremely moderate,
Incorporated
II
arrested,
Accordingly,
SECURITIES
\
SO
(286)
The Commercial and Financial Chronicle
stable.
Attacking the Farm Price Squeeze
tween
Agriculture
of
We
nearly four
years now,
by farmers have
while
the
orices
24%,
they
fallen
tute
quent
The
depression
freely predicted
pocket-
to
be¬
finan¬
readj ustment
peacetime
suffered
war
in
Ezra
Taft
would
Benson
are
them
We have
following
history.
commodity
prices
fore
address
26th
Council
by
Annual
of Farmer
failed
economic
an
history,
Just
go
every
farm
as
faster
up
Secretary Benson, be¬
Meeting of
National
Cooperatives, Chicago,
the
serious¬
the situation.
indicates
I
been
have
we
convinced
am
culture
that objective is
of
be¬
Cooperatives
I
their
to
get
prices
farm
with
balance
back into
general
the
While
believe that
doing this, we
lose sight of the fact
are
major
a
many
reason
their
and
growth
the
that
than
for
ahead
road
the
several
prices
agri¬
will
be
we
have
now,
most
one
months
have
never
that
price
what
remains
pocket after
his
or
he
bad
a
the
income
net
whether
for
not insure
in
farmer's
a
bills
had
paid—
are
that
—
has
measures
good
a
year
The theme you have
one.
chosen
does
alone
this
shows
meeting
main
for
other
these
of
factors
besides price.
There
been
has
four
obvious
fronts
attack this prob¬
can
we
relatively
the
cooperative
and other products which
require
ting
in
their
farmers
operations.
the cost-price
In
hit¬
are
from
squeeze
directions.
two
Cooperative mar¬
bring better prices,
cooperative buying
often
keting
can
while
reduces costs.
In
an
upon
our sense
of values
may
sometimes become confused. When
buy a new automobile, it is
likely to be horsepower, rather
we
it
their
for
except
this
is
"yes," then
cooperative in
to these questions
have
we
the
a
true
farmer
sense
All of
the
us
who
continuing
are
interested
success
operative movement
officials
and
alike
of the
—
—
severity of seasonal gluts and sur¬
pluses. Non-recourse storage loans
on a
variety of crops provide guar¬
minimum
farmers.
aside
to
quali¬
to set
billion worth of
has
the
of
some
market
to
Authority
commodities
take
free
prices
to $2%
up
surplus
members
must
never
lose
sight of the real objective.
Farmer cooperatives
must not
adopt abuses once practiced by
commercial
some
the
very
enterprises —
in many
originally led to the
abuses which,
formation of these
same
coopera¬
tives.
Recently
I
issued
a
memo¬
relating to the responsi¬
bilities and activities of employ¬
randum
prices
helped
often
goes
almost
un¬
noticed. The corporation executive
who
a
has
year
makes
guided his firm through
of record-breaking
the
front
while
pages
commercial
organization
payments owed to farmers, mem¬
bership dues in any general or
profits
important scientific advance
other
which deducts, or checks off from
specialized farm organization,
an
Continued
may
on
ex-
page
off
pressure
of wheat
player
and
cotton.
Second,
markets
we
abroad
sale of surplus farm
tions
We
currencies
outlets
relief
for
our
the
bil¬
products for
and
!
14
v
Gundy & Co., Inc.
Wall
Street, New York 5
provides
through
and
W ood,
dona¬
famine
West Adams
105
Street, Chicago 3
aid.
moving increased quanti¬
are
ties
CANADIAN SECURITIES
through
velopment Act.which permits the
additional
DEALERS IN ALL
expanding
are
lion dollar Agricultural Trade De¬
foreign
Members of The Investment Dealers' Association of Canada
of
government-owned
pluses into channels of
sur¬
consump¬
affiliated with
tion at home through school lunch
Direct private wires to Montreal,
Ottawa,
Vancouver and
The
First
Boston
and gifts
programs
Winnipeg, Calgary,
sons,'institutions
Corporation, New York
agencies.
to needy per¬
and welfare
addition
In
to
Wood, Gundy & Company
Limited
stepned-
consumption of dairy products
by the armed forces, we are ex¬
up
Stock orders executed
on
all
Exchanges
panding
Head
SO
Office
Established 1905
and
our
school lunch milk
by $50 million a year.
program
These actions tend to reduce the
Kins Street West, Toronto, Canada
Wood, Gundy & Company
supply and strengthen demand for
farm
MONTREAL
OTTAWA
WINNIPEG
LONDON
HAMILTON
VANCOUVER
CALGARY
KITCHENER
QUEBEC
NEW YORK
products.
effect
upon
should
Their
become
agricultural
even
Members of
cumulative
prices
more
The Toronto Stock Exchange
appar¬
TORONTO
Research,
Education
Improved
The
the
STOCKS
:
third
farm
HALIFAX
Marketing
line
cost
of
attack
pTice
-
MONTREAL
QUEBEC
and
SAINT
>
increased
culture
about
offices
specialize
and
dealers
and
in
financial
service
in
our
branch
markets
for
by
Stock
Exchanges,
on
or net
Direct private wires to
Toronto, Montreal, Winnipeg,
BELL SYSTEM TELETYPE N
ASSOCIATE
Philadelphia
London, Eng.
40
MEMBER
AMERICAN
through
I
so,
of
the
Y
STOCK
the
PLACE,
EXCHANGE
NEW YORK 5
am
Telephone WHitehall
Calgary
Canadian
Ottawa
Montreal and Canadian
Affiliate
—
4-8161
Member
Stock
Toronto,
Exchanges
this
40 Wall
ap¬
Street, New York 5, N. Y.
confident,
WHitehall
4-1656
future.
Inquiries
from
Dealers
and
concerning Canadian securities
together—will do more to
help farmers meet the cost-price
squeeze
than
aid
bv
any program
Institutions
are
invited.
which
mortal
could
be
de¬
further
Vancouver
mention
Halifax
impetus
it
is
am
certain that
here
to
this phase
least
Limited
Members:
man.
Fourth, farmers themselves,
through their cooperative efforts,
are
attacking—and effectively at¬
tacking — this perplexing cost-
Montreal
Affiliate:
Gairdner & Company
of gov¬
that
will
The Investment Dealers
Association
important but because
Montreal Stock Exchange
Canadian Stock Exchange
Vancouver Stock
Investment Bankers Associ¬
ation
American Stock
of America
Toronto
Montreal
Kingston
Kitchener
Exchange
Exchange
(Associate)
Private Wire
I
of the overall
The Toronto Stock Exchange
of Canada
give
drive.
campaign last—not because I think
P
Company Inc.
Gairdner &
come
better
price problem. I
your
discussions
Toronto
ONT.
taken
vised
1-702-3
ENG.
VICTORIA
Greater
of
Winnipeg
EXCHANGE
those
ernment
Dominion Securities Corporation
Boston
and
have
past
cultural practices and emnlovment
of sound marketing methods—all
New York markets quoted.
Calgary, Victoria, and Vancouver
,
largely
proach
will
the
the Montreal and Toronto
external
internal Canadian bonds.
Stock orders executed
in
efficiency, broader use
feeds, seeds and
breeds, the adoption of improved
in
LONDON,
LONDON,
CALGARY
approximately
and
institutions
HAMILTON
EDMONTON
is
during the current fis¬
The great gains of agri¬
cal year.
Trading Departments in all
VANCOUVER
OTTAWA
REGINA
upon
squeeze
$20 million
We maintain
WINNIPEG
JOHN
KITCHENER
Exchange
through research, education and
improved marketing. Government
ouDays for these programs have
been
CANADIAN
Montreal Stock Exchange
Canadian Stock
in the year ahead.
ent
BONDS
in
co¬
shringing farm profits. We
ees
of the Department.
One sec¬
than safety features, which guides
moving forward on all of them.
tion
is of particular interest
to
First, government price support our choice. The home-run hitter, cooperatives. It provides that no
who strikes out oftener than he
programs
help, farmers market
employee of the Department of
wins the popular ap¬
many of their products in a more connects,
Agriculture
shall approve con¬
while
the
solid,
team- tracts with
orderly manner, minimizing the plause
any
co-operative or
anteed
LIMITED
of
the term.
are
fied'
McLeod,Youhg,Weir & Compaky
us
very
farmer
increased
theirs
answer
instances,
which places so much
size
and
the
age
emphasis
of
a
cooperative
individual
Has
been
If the
the marketing of farm
and
this
is
better standard of
a
its
by their
all
test
cooperative?
purchasing of the fertilizers, seeds,
dramatic,
are
which
on
have
serv¬
agricu'ture is found in two
areas:
commodities
that you clearly recognize the im¬
portance
for
Yet
real
income? Has it brought real bene¬
fits and services which would not
greatest
opportunity to be of further
ice to
we
in
operate
fields today, with varying success.
is
lem of
the worst.
seen
traveling.
For
farm
111., Jan. 7, 1955.
minimize
Yet I believe all of the evidence
smoother
*An
ago
so
view, 1954 proved to be
not
of
ness
agriculture.
our
year
From
was
although agriculture did not fully
share
in
this
prosperity.
The
changeover has hurt and is hurt¬
ing most of our farm people. I
which go with
to
a
which
the best peacetime year in
pangs
new
materialize.
point of
ing pinched.
than
economy
the
one:
members.
The
reversed.
tions, farmer cooperatives
our
are
not
be
carrying out these principal func¬
of
other
before.
ever
expla¬
economy
could
it
ing attained. The job at hand now
more
dislo¬
and
that
simple
*
It's
segments
elo¬
books
to a
while
severe
agriculture
—
even
or
membership.
know
into
farm prosperity. It is price times
volume that make gross income.
The story does not end even there.
in
nation of why
The
mushroomed
must
farm
cial
have
ago
total
of
standards
by their
statements, by their vol¬
of business
ume
success
cooperatives
similar
financial
two or three dec¬
men
farmer
our
living
price level.
cations
consti¬
an
prise.
of
contributed to
first half
prices
by
struggling
thriving enter¬
Cooperatives formed by a
ades
the
near
enough that
the
measure
bers.
iDefore
readjusting to
small,
a
should
some
vast,
a
back
It is understandable
we
price
than
nonfarm
from,
two
or
flourishing organizations, serving
many thousands of farmer mem¬
of farm prices at
levels, however, But the
decline had
to be halted
they also drop farther and faster
most
gressed
upstart to
line
a
classified ads.
with fewer and less
only
4%. These fig¬
ures
with
rate
more
gathered here, the American
cooperative movement has pro¬
point
content
it
us
handful of
be
discuss
to
During the lifetime of most of
re¬
Administration
like
nearly normal conditions. We are
making the transition this time
have
pay
be
19
a
stability
better
the economy is
should
I
fully at this point.
current
farm than the general price level under
Since the stimulus of war and inflation.
plunged
will
was
new
not
must
mere
freezing agricultural production in uneconomic patterns.
February of 1951, prices received
there
installed.
was
squeeze.
prices have been declining.
It
86.
and
1953 when the
Among remedies proposed are: (1) storage
loans, (2) set-asides, (3) trade development, (4) market
expansion, (5) research and education, and (6) improved
marketing and farmer cooperative activities. Warns against
For
that
plunge in the parity ratio during
the two years preceding January,
Noting that farm prices Have declined 24% since 1951, Secre¬
tary Benson discusses current programs designed to ease the
cost-price
94
called
By IION. EZRA TAFT BENSON*
Secretary
For the last two years, in
fact, the parity ratio has averaged
fluctuating narrowly be¬
about 90,
Thursday, January 20, 1955
;;
.
Quebec
London
System
Calgary
Hamilton
Vancouver
Winnipeg
Edmonton
85
Number 5396
Volume 181
^
.
The Commercial and Financial Chronicle
.
31
(287)
Continued
from
3
page
—gnly
thifi and
there, L
Problems and
tive
Prospects
Of the French Economy
of
before the
for
which
knew
France
and remember the
war
veneration
ence,
who
you
and
age
used
to
experi-
be
such
an
important part of the French
litical
scene,
change this
to
are
live
no
grandfathers
lived
They want
better
a
willing
are
a
young
longer
satisfathers and
their
as
what
Today's
means.
Frenchmen
field
realize
can
po-
before
them,
lot and
for the
first
they
time
in
generations to change profoundly
their individual ways of life to
casualty rate which, when
pared to
total
population,
about six times higher than that
of the United States.
French
on
rpnnrt
p
th#»
nn
.•
basic
reasons
stems
from
iritaii+v
for
the
one
that
optimism
forward
tioned.
of
AT
surge
lu
»-i
late
tinn
ic
thirties.
Now
the
situa-
t!
nnmniptdiv
stock
has
of
been
increased by almost 3 million
people to a total of 43 million.
With the sole exception of Fin-
land
the
highest
French
birth
country.
pean
J
today have
rate
of
the
Euro¬
any
By 1960 and there¬
after, France will have considerably more young people entering
the laboring force every
year than
either West
We
have
England.
or
often
in
healthy and reliable member of
a
the
community
of
American
let
l llal
our
own
of
augury
population
is
an
for the
prosperity
fu¬
ture.
That
holds
true
should
continually
be
kept
in
when thinking of France's
mind
very
situation
same
today
in
France
Aid
standpoint of
payer,
the
all
we
\
tt„4+
d
at
dc
talking of the presentday French economy I would like
to
the
recall
economic
by
extent to which
system
World
War
II.
realized
ways
laid
was
It
is
abroad
her
waste
not
al-
that
the
physical destruction in France resuiting from five and one-half
of
years
of which
war,
four
were
tion,
was
under
than
more
enemy
occupa¬
much greater and
more
widespread than that in the First
World War.
Two million build¬
ings,
about
or
buildings
aged
a
in
fifth
a
France,
more or
of
quarter of this
destroyed.
total,
The
12,000
the
dam-
less seriously. About
million buildings were
some
all
were
half
or
a
completely
demolition
bridges,
the
of
loss
of
two-thirds of the French railways'
rolling
the
stock
French
brought
and
and
two-thirds
merchant
civilian
fleet
of
had
transnortation
communication
I
to
.i-
American
know
Because
omy.
of
.
tax-
that
the
factor
importance of which has
been
not
generally realized
by us in
During the Occupation,
America.
Hitler's
Government
stripped
chine
chine
and
France
tools.
tools
The
number
from
than
ma-
of
ma-
France
five
was
the
by military
bombardment.
utterly
modern
recovered
greater
destroyed
of
removed
never
times
air
another
was
number
action
At
the
end
and
was
25
of
the
variety
aid
exaggeration
to
French industrial
say
that
an
the
plant needed to
be almost entirely re-equipped
face modern competition.
-
to
exact"figure
is
lost
more
and
missing during World War II,
than half
a
million dead
between
1947
and
1952
on
starting the development of the basic in-
The
dietary
standards
60%
had
lower. By
been
re-
the
1951
dustries
expected
were
to
cement,
agricultural
machinery,
transport, and fertilizer.
French_index of
production
which
The
coal
had
risen
million
tons
1938
xaoo
level
icvci
record.
icv-uiu.
mines
The
xiic
produced
57
1952,
an all-time
productivity
i,.• ^1
+u—
tt»——t,
and over 10%
higher than the of French underground workers
1929.
record: ..year
There
was
a
has continued to improve and is
almost
c».mn-»3b
—
j
40%
/o
—
above
duuvc
the
uic
in
dvciagc
average
mo/
[iiuuui-uviiji
j—
j
consumption
products
has
also
of petroleum
doubled
of these facilities during the
France is now virtually self-
sufficient, and recently there has
been
discovered
Bordeaux
near
weste"? Euro^e^which
pxnpptpd
PVentuallv
^p
one-lllin
-
01
alone
to
y_,_
v_0
rfdliceb
Continued
on
This
war.
figure, but
must
^
,
stupendous
the other hand we
on
always
J
is
a
remember
a
sum
total
of
this
war
did
that
,,
,
.
rench spent on the
China
the
T
j
war in Indo-
roughly equal to the
American
much
to
aid.
This
slow
French
economic recovery, to say
nothing
of
the
terrible
drain
French,
on
lives.
At
the
France
of
end
World
faced
was
for urgent action in
fields.
functions
War
wtih
II,
demands
Banking?
many differ¬
governmental
Normal
and the private produc¬
tive apparatus
had to be put back
•
,
0para'10" ,aId trem?"d°ua ^ar
,daiTa&6 bad to be repaiired. Mean-
w.hj!e' tkerf Y3|3 uiI?lversalVl'c0":
?
I Frenchmen s ould
u
i
t?
ter and 17101,6 secure life. In partial
determination
this
to
answer
the
social security system was greatly
expanded
and
periodic
increases
wage
Within
two
ernment
zation
decreed.
the Gov¬
undertook
several
of
general
were
short years
the nationali¬
key
industries,
taking over not only their current
operating responsibilities, but also
the financial burden of their capi-
tal ^equipment and «construcwent into
he^t emendou of the
effort
development
0<r'A
the
overseas territories
of the French
J7"1011 and dunng al
t.ns timc
there was the severe dram of the
in
Indh°Cah'"a' mored' intense,
became
war
French
nized
the
fense
Government
effort
sponded
build-up
for
need
recog-
heavy deand reby
allocating
to
the
of her NATO forces a
in
a
Europe
let
us answer
your
questions about Canada. This Bank
percentage of her national income
second only in Western Europe to
has been
that of
for
nearly 100
are
considering doing business in Canada in
Britain,
Xhis
ited
over-commitment
French
physical
c^aj resources,
and
of
lim-
finan-
way
this attempt simul-
working for Canada's friends all
years,
and
we can
help
over
you, too,
the world
if
you
any
whatsoever.
taneously to increase living stand-
build
up
future,
choose
among
fives—all
—|ay
heavy
this
a^
for
the
unwillingness
industry
by
the
Head Office,
Toronto, Canada
the various objec-
desirable
in
fhe root of
was
seven
BANM0R0N19
to
themselves
France's al-
Progress made in industrial
the first
THE
re-
obscured
years
country's
during
after the war
constant
and,,
BRANCHES
ACROSS
CANADA
-
CORRESPONDENTS
ALL
OVER
THE
WORLD
suddIy
v_n
p-p y
lequiitr-
page
Thinking about Canadian business?
Indo-
China
sinqe
1933, and refinery production has
in
spite of the almost total destruq-
been increased by about 250%
an? loan8to tba Frencn economy,
"ot p0"n, g .the
fndltam dehverms of armaments^in
connection with the NATO defense effort and with the
habilitation
French
trated
wh!tch wl11 supply 300>000 kll°-
watts*
fair
loss
The
indus-
totS
ior the
most continuous postwar inflation,
lives.
first
of
Comparable to this physical destruction
was
the
irreplaceable
of human
from
as
*
.
the
over
war's, ards> to rebuild both prestige and
destroyed homes, to restore the
country's
military
position,
to
It is not
years.
much
as
miners,
„
of
fall
trial reequipment program, usually
been called the Monnet
Plan, concenpre-
Saar
'
very
the average age of those machine
tools
that
were
left
in
France
capacities
Government's
the
power
had
the
_
Production
the
a
qualifications. However, it
c°ld
there
mines
of
_
Wlt0 exPlana"ons and technical
the
And
and
The
pro-
j
American
any
uujl
From the
u
forms
virtual
ctanrictiii
war
communications,
industrial
our
tt<
United States has poured
ent
Before
bridges
installations,'merchant
shipping,
By
Program
look
iuuis.
a
i«an.c
j
American aid program.
and
future
railroads
over-
stored.
nations.
take
us
™^
recent
that the high rate of growth
years
in
Germany
heard
the
crippling
been
in
resumed
was
of
and large, the population's pro- contribute most to general ecovision of essential goods had also nomic expansion. These were coal, tion
been
replenished
and
normal electricity,
oil
refining,
steel, war.
in embarking
the further economic development essential to
participation as
showed6 *that Abetwee" $6 and *7
that since 1946_a period of
eight
^"been conTribuTd in grants
years —the population of France
a^e been contributed intrants
had
most
had
duction
advance
of her economy and
on
fast Te
taken
census
Roads
come
after
years
the
damage
The
electric power
has been rising steadily. It is now
0f 1953 and continued
throughout more than double the 1938 level.
1954. In 1954 the index was
53% In the single year 1952, 17 new
above the 1938 level. This was hydroelectric stations Went into
about the same as the rate of service, including the great
increase in British industrial pro- Donzere-Mondragon multi-purduction over the same period.
Pose Project in the Rhone Valley
over
points
°lF+-?n?f J!™3™?* giave
the
taking
France
progress
One manifestation of that
vigor is contained in the popula¬
tion figures.
From 1900 to 1945
end
physical
sign
50% higher than in 1929, an*
in Europe is now second only to
able to make in the rehabilitation
First
the
of
war>s
Overcome
five
brought back to at least their
o
*rencn econ-
..
.
is optimistic and
omy
nVi
.
opportunity for
Economy
"EVa
■
morning
was
plants
what
to
Crippling Damage to France
harbor
,
us
Today the passage of ten years
provides us with a convenient
The
Mv
was
for
easier
significance.
how
com-
that
perspec-
^
Within
a
achieve their goals.
Optimistic
ar s
now
after hangover, the first
that the inflationary binge
ten years
it
its
in 1953, but this probably
Progress was was to be interpreted as a sort of
i
..
W
........
Those
our
makes
evaluate
ttff struggle Wlth setback
Rnt
™
32
32
The Commercial and Financial Chronicle:... Thursday,
(288)
Continued
from
try, by the rubber industry which Instead of the deficits in meat
is the third largest in the world, and
dairy products that existed
and by the shipbuilding industry a few
years ago, these items are
31
page
Problems and Prospects
Of the French Economy
ments
crude
oil.
Explorations
proceeding in several sections
are
of
of
France
and
its
ter¬
overseas
gained from the establishment of
the
Schuman
under
market
common
Plan.
the
about
Indeed,
month of French
other good fields will be found in steel is now being sold to Ger¬
the relatively near future.
many. France has also better than
The French iron and steel in¬ doubled its production of alumi¬
dustry has been greatly modern¬ num since before the war; and
ritories,
ized
over
of $1
excess
duction in
that
probable
is
investments
with
made in
it
and
1954
of
was
1938
that
already
billion. Pro¬
roughly 65%
is still
and
ris¬
ing. It has increased fairly con¬
stantly except in 1953. One-third
of
it
is
Judging
currently being exported.
from the 1 statistics, the
industry has greatly
100,000
tons
a
ment.
which has risen out of the almost
chronic
complete destruction
to compete
strongly
the war
for foreign
orders. In the process of rebuild¬
ing its railroads, France has elec¬
trified
made
miles
2,500
and
track,
of
locomotives
electric
French
have
impressive records for both
speed and durability. Some of our
railroads
well
could
look
the
to
to keep
on
time.
French for lessons in how
their
trains
running
French automobile production is
setting
new
records this
year,
now
ranks
fourth
among
the with production of about 50,000
aluminum-producing countries of vehicles per month as compared
with only 20,000 in the best pre¬
the world;
Conspicuous progress has also war years. I would suggest that
been
shown
by
the
French anyone who has doubts about the
chemicals
industry, by the en¬ adaptability of French industry
gineering
industry
which
has to modern mass-production tech¬
successfully bid for large projects niques might well take a look at
abroad, by the armaments indus- the new Renault works at Flins
also
now
of
In
in
steel
at
or
the
of
one
automobile
other
modern
plants.
Inflationary
Curve
Leveled
Now
inflation
of
has
been
have
followed
been
not
prices
always been the
is already the
had
as
This
before.
case
period
longest
France
has
Members
the past two years, as
inflationary curve has leveled
out, and with the disappearance
of postwar shortages and ration-,
ing controls, a new spirit of enter¬
prise
has
developed.
Conscious*
the
Hart inc.
&
of-The Investment Dealers'
Association
of Canada
efforts
internal
Notre Dame
St. West
230
year.
The
QUEBEC
-
ST.
TROIS-RIVIERES
JOHNS, P. Q.
-
-
Montreal
City, IIAnover 2-0575
prices, there have been en¬
couraging signs that the French¬
confidence
man's
in
Gold
reviving.
the
Controls Over New Securities
Flotations
is
franc
To
long been
hedge against
has
the
Frenchman's
of
Ended
expansion of the
market as a source of
encourage
financial
funds for
investment, the Gov¬
inflation, and for many years the ernment has relaxed controls on
rise in the gold price was an in-*
the flotation of new securities and
the
fall
value
in
the
of
and
the
the
not
the
traditional
one
of
ket
the
mattress.
factors
interest
and
in
This
leading to
the
stock
of
the
rediscount
rate, this program has resulted
holdings, they have at least stop¬
ped putting their new savings in
newed
reduction
lower cost
French
hoarders
disgorged
their gold
Although
making
money
dropped steadily since early 1954.
have
a strong effort to make
available to enterprises at
by reducing bank fees
commissions.
Together with
is
is now en¬
prices have
is
credit
long-term
by
something
re¬
like 1.75% during
mar¬
in other forms of invest--
the past year to
rate of
present
a
cent
approximately
in
UNDERWRITING
seriously during re¬
has been construction
least
at
25
DISTRIBUTING
—
TRADING
Canadian Securities
that the
minimum
of
the
per
this
and
in
factor
the
shortage,
economically
but
ceilings
the
for
IS THE LARGEST MARKET
bear
fact
French
of
the
average
rural
from
The Toronto Stock
Exchange lists
a
larger
number of industrial stocks
than any other two stock
exchanges in Canada.
These include
every phase of
major business activity in Canada.
shares of
Manufacturing companies
75 Construction and steel firms
38 Utilities
Paper companies
and many others.
However, here again there
finally
solid
couragement.
in
1953.
Last
that
the target of
pleted dwellings a
total
of
that
in
this
rate
for
a
thereafter.
France
would
about
United
Company Limited
Toronto
Stock
Exchange
Montreal
*
Ottawa
•
•
Winnipeg
DOHERTY ROADHOUSE & CO.
MEMBERS
THE TORONTO
STOCK EXCHANGE
THE INVESTMENT DEALERS' ASSOCIATION OF CANADA
and
the
predicted
number
the
be
a
a
years
of
year
in
equivalent
year in the
BRANCHES
BLOOR
ST. CLAIR AT YOXGE
BRANCH
IIAILEYBURY, ONTARIO
OFFICES
KIRKLAND LAKE, ONTARIO
LISKEARD, ONTARIO
TIMMINS, ONTARIO
Surplus of
who
during the
last
Private Wires: New York
visited
as
Calgary
•
•
Montreal
'
All Branches
Vancouver
just after
years
end of the war may be
prised to learn that France is
almost
AT
a
NEW
Has
you
BAY
pur¬
Agricultural Products
Those
LOCAL
main¬
of
comparison
houses
255 BAY STREET, TORONTO
said
and
be
OFFICE
HEAD
com¬
States.
France
much
sur¬
now
trouble
with its agricultural surplus prob¬
lems
STREET, TORONTO, CANADA
Toronto
would be
260,000
million
a
240,000
would
For
260,000
poses
having
EXCHANGE
The
of Canada
was
the
STOCK
Bros. &
Members:.
Association
en¬
month
year
He
1955.
least
at
tained
France
TORONTO
Dealers'
Minister for Reconstruction stated
request.
1852
Burns
Investment
are
for
grounds
A progressive
housing program
ambitious
launched
1,000 listed issues, will he
sent to you on
centers.
housing shortage has become
perhaps the main hindrance to
the mobility and, therefore, to the
productivity of labor.
of
A complimentary copy of our
Monthly Review, giving the essential
trading data on the more than
industrial
The
exceeded
enterprises
58 Financial institutions
to
The
age
dwellings has been
increasing and their condition has
been
deteriorating
ever
since
1913.
Meanwhile,
the
housing
shortage
has
been
further
ag¬
gravated in the last few years by
increases in marriages and births
and by the movement of families
IN CANADA?
Limited
Members:
blame
the
of the nation's
FOR INDUSTRIAL SHARES
Burns Bros. & Denton
an
well-intended
unsound
rent
most
that
Affiliated with:
was
did not
backlog.
damage has been
housing
WHERE
year
still
accumulated
war
obvious
48 Textile
—
years
dwellings
While
are
TWX: NY 1-1467
DIgby 4-3870
socio¬
new
replacement
touch
There
Tel:
Denton, inc.
New York 5
most
years
reached,
Founded
37 Wall Sireet,
time
of housing. Last year was the first
175,000
27
Burns Bros. &
the
on
first
the
For
con¬
almost
as
ages
of
as
1951
lion
it
44
it
it had then with its short¬
basic foodstuffs.
As
22
mil¬
Last
year
bushels
exported
million
will
Partners
late
France
of
imported
wheat.
twice
that
bushels—and
amount—
this
year
export 55 million bushels.
THOMAS H. ROADHOUSE
JAMES
W.
in
cost of medium- and
cutting the
industrial sector which has
basic
98
of
an
population, opening
logical perspectives.
time
that.
leveling off
the
of
consumer
goods are be¬
ginning to come within reach of
the less privileged classes of the
lagged
CHICOUTIMI
-
PROVIDENCE, RHODE ISLAND
BAY
1920's.
at
Accompanying
durable
St. West,
SHERBROOKE
also
phenomenon
scene.
The
Exchange Pi., New York
is
new
French
Branch Offices:
40
development
credit
entirely
Stock
Notre Dame
of
sumer
Exchange
Canadian Stock Exchange
Toronto Stock Exchange
Head Office:
market
mass
the
since
save
credit, layaway plans,
and the like. Fullpage newspaper advertisements, a
totally new idea in France, have
begun to appear during the past
Savard & Hart
Montreal
create
stability
price
of
seen
in especially
But the fact re¬
installment
ment
MONTREAL
Members:
made to
by pro¬
motional advertising and develop¬
an
230
being
are
have
increased
by
are
"blue
again and to invest
productive enter¬
prises.
Businessmen are stimu¬
lating this revival by distributing
more profits to their stockholders
and by other methods.
As a re¬
sult
of
all
this,
French stock
averages have risen 63% in the
past year. You can see that Paris
has been having its own bull mar¬
ket and quite a respectable one
ning to
about
which
occurred
securities
demand.
why
is
the
their savings in
mini¬
several increases in
wage
rates totaling
then,
Therefore, it
couraging that gold
Out
chip"
prices have remained stable. Since
20%
call
would
mains that Frenchmen are begin¬
Pinay launched his allcampaign to stop inflation,
mum
This
inflation.
we
strong
broken.
Since March of 1952, when Prime
out
the
what
seems
Minister
franc.
During
Savard
field, it
pretty clear that the vicious round
dex
French
it is hard to
defensive attitude of
investors after so many years of
Naturally
change
surplus.
financial
the
January 20, 1955
COCHRANE
D'ARCY M. DOHERTY
JOHN
M.
ROGERS
ujirtUtltrl-^wKtesii
v 1
'
■
t.
Number 5396
Volume 181
6%.
This
-
rates
is
conscious
a
lowering
of
t
already mentioned should provide
the
of
a
Government's program to encour¬
effect and,
of
had
in
investment
During the past year the French
trade deficit has rapidly
diminished.
In October, for the
first time in four years, France
months.
18
actually
Opportunities
balance
American
for
Capital in France
-
investment
nancing
played
ing
by
reminds
1954
has
in
capital
plus. Although" her liberalization
of import trade still lags behind
that of most other European coun¬
There have recently been
called to my attention several in¬
ture
new
of
testified
the
France
fu¬
there
example, I understand that Proc¬
Gamble
is putting a sub¬
stantial amount into the manufac¬
ter and
ture
that
of
detergents
Marseille,
in
Minnesota
ing in
Mining is invest¬
abrasive tool operation,
an
Wax has opened a
that Johnson's
model
factory, and that Gen¬
new
a
eral Motors is again expanding its
Frigidaire plant.
the
these
It
to
seems
me
reports—and there
others—give
numerous
a
for foreign
are
the
have
like
The
Jersey
situation
will
which
certainly
a
long
extent
large
contribu¬
there
as
were
and the exchange
on
was
a
Despite the recent sharp increases
in
gold and dollar reserves, vir¬
tually nothing has been done to
introduce competition through
I
by the
coherent economic
encouraged
also
evolution of
a
with substantial continu¬
implementation. The ups
program
ity
of
was
a
hand-to-mouth
no
chance of a
return of confidence in the franc,
of reducing import restrictions, or
re-
economic situation and
tne French
the
in
remedies
of
types
This
pre¬
opinion has
ward
public
conditions,
programs
have
a
to
cabinets
recent
the
of
extent
considerable
Each
other.
each
complemented
The
contribution to make.
a
Cabinet concentrated on
ending the inflation and stabiliz¬
ing the internal value of the cur¬
rency,
which was certainly the
number one priority problem sat
Pinay
Laniel
The
time.
business
Utility, Corporate
Canadian
Internal
at net
New York
or
prices
ate
In
—to
immediate
more
reduce the
indirect taxes
of
Fifth,
and
Victoria
important
very
France with its
ing these policies, she may indeed
on
the threshold of a new eco¬
nomic
revolution
bring astonishing prog¬
the
in
ress
industrial
and
that could
next
ten
years-
J.
this
H.
Doerge
year.
Carl
President;
Mericka,
H.
S. Gray and
Richard J. Cook, Vice-Presidents;
and Stephen E. Hlivak, Secretary
William
Doerge,
and
has
Doerge
Mr.
Treasurer.
associated with Mr. Mericka
been
since
Franklin, Meyer Firm
and Mr. Hlivak since
1928,
with
Also
1931.
its
since
To Admit B. Zoref
the
beginning
company
Alfreda
are
Myer and Mrs. Betty Wrege.
Franklin, Meyer & Barnett, 120
Brandenburg to Admit
Broadway, New York City, mem¬
bers of the New
change,
on
Zoref
to
manager
for
Robert
Ex¬
Mr;
partnership.
office
is
York Stock
Feb. 1 will admit Ber¬
Zoref
nard
the
come
&
B.
Bregman
partner
a
in
will
be¬
Brandenburg
Co., 100 Broadway, New York
members of the New York
City,
Stock
firm.
Exchange,
Midland Securities
members:
1
problems, par¬
field of foreign
trade, but, to a degree unprece¬
dented since the days of Poincare
during the 1920's, she now has
the
on
Feb. 1st.
'
corpn. limited
f
The Investment Dealers' Association of Canada
Canadian Government,
Municipal
Corporation Securities
the
member:
The Toronto Stock
Exchange
will
the
and
resources
The Midland Company
Stock orders executed
on
all Exchanges
Seldom has the conjuncture
with such
which
provided France
auspicious base from
an
the
Toronto, Ontario: 50
long-range,
structural
weaknesses
attack
to
nosed
and
London, Ontario:
Sault Ste. Marie, Ontario:
courses
the
in
of
Eastman, Dillon & Co., New York
economic
consolidate the progress
field, to
the
in
made
110 March Street
Private Wire to
promising
action
future
King Street West
Huron & Erie Building
publicized by French
most
The
London, England
Carl
Officers of the firm are William
apply-'
If France is successful in
be
wm. J. Mericka
ebrating their twenty-fifth anni¬
versary
deficit financing.
economists.
and other Canadian Cities
in
history of chronic
inflation,
consolidation
of
the
present revival of confidence in
the franc by'keeping the budget
under
control and by avoiding
which have been repeatedly diag¬
Vancouver
prices and costs
on
many
in
persistent,
Calgary
Winnipeg
Montreal
Toronto
importance
present impact of
production.
Cabinet is taking
of circumstances
Affiliates in:
de-r
taxpayers and the State, but also
—of
with which to cope with her prob¬
Boston
long
so
relationship
and
today with
lems.
I nt'urpura(<>d
New York
Midwest Stock Exchange, are cel-
conclusion, France is still faced
both
A. E. Ames & Co.
J.
the
of
not only to cre¬
between
program,
better
a
policy.
ticularly
Inquiries Invited
Wm.
—
members
their country.
of
Conclusion
Exchanges
Ohio
Co., Inc., Union Com¬
Cabinet
serving the essential continuity of
on
for
&
Building,
Fourth, continuation of the tax
reform
more
steps of economic reform in
number of fields while still pre¬
a
Orders executed
and
velopment
the
political spectrum. Although dif¬
fering in approach, the economic
Mendes-France
Government, Municipal,
have
burden obstructing the
a
gravitating to¬
been
moderate center of
the
bold
External
been
incentive to
embark on a dynamic expansion
of production.
The present
Stocks
Mericka
merce
fact
improvement
gradual
economic
in
the
reflects
simply
with
that,
that
Canadian
CLEVELAND,
scribed.
gave
Bomls
which
terests
this field too.
in
am
industry.
business
practices in
industry, agriculture, and distri¬
bution,
and
by
taking
action
against those organized special in¬
the dollar
area. Still, in view of the progress
made in so many other fields in
the last few years, we Americans
can
have every reason to hope
that more progress will soon be
made
Celebrates 25 Years
reconversion
and
33
Wm. J, Mericka & Go.
restrictive
from
imports
freer
Western. Eu¬
to increase
stimulate, the
as
Third, fostering the growth of
healthy competition by attacking
integrated world economy.
more
and
modernization
of French
more
or—what is still more desirable—
had
there
basis,
exchange
foreign
important
savings
this
French economy, but
meager reserves
Caltex.
and
As
there.
in particular those of the oil com-
panies
by
important fact is that they are
the
borne fruit,
already
to
American
tions to the
of
some
investments
American
older
which
of
possible
various
by
mention
some
made
be
the
expects
reach» $1V2
to
of
Governor
France
of
Bank
made
investment in France.
also
should
The
spring. Of course, these increases
in foreign exchange reserves were
tangible
favorable "climate"
Meanwhile, I think
will
a
as
reserves
proof of progress toward re-estab¬
lishment of
sur¬
foreign
trade
before
really
be part of
integrated Europe
of
either
year
reduced.
been
that
moderate
a
field
against other
countries so
competition
compared with only and downs of French cabinets,
ago.
This still falls the all-too-frequent interregnums
considerably short of the level of between successive governments,
liberalization reached by, for ex¬ and the rough-and-tumble of in¬
ample, Germany with 90%, Bel¬ ternal politics give an exagger¬
gium with 88% and Italy with ated impression of instability. Ac¬
despite
varying political
99.7%.
In
the past two
years tually
French gold and foreign exchange coloration, there has been rela¬
reserves have risen
tively little difference of opinion
by 40% and
now
exceed
$1 billion.
At the among the cabinets of the last
same
time her external debt has few years in their diagnosis of
18%
and
For
by expanding existing ones.
last
shown
Europe,
establishing
by
enterprises
joint
their
to
economic
the
tries, France has now removed
quantitative
import
restrictions
from
75% of her imports from
stances in which important Amer¬
in
her neighbors,
months of
of
the investment
have
undertaken by
ures
during
France.
firms
bene¬
has
France
and
American
confidence
Pay¬
European
fited from the liberalization meas¬
me
private
ican
the
foreign
with
trade
In
favorable
small
a
Union
ments
be and is be¬
can
of
countries.
Speaking of the revival of pri¬
vate savings as the means of fi¬
of the role that
had
plied
ropean
Much remains to be done in the
France
•
foreign
has
securities
new
in the last
40%
foreign private invest¬
ment.
real
a
according to the Bank
the level of private
France,
risen
this has
All
taking the other steps on the
to ultimate convertibility.
of
road
good object lesson in the mutual
benefit of
investment and expand pro¬
age
duction.
I have
sult from the new oilfield
interest
part
(289)
The Commercial and Financial Chronicle
:.;
few
last
years,
are
primarily in the direction of
greater freedom of both external
25 BROAD
NEW YORK CITY 4
STREET
Telephone HAnover 2-8875
t
•
Teletype NY
.
'
•
1
.
-
1-4358
.
Dealers in
Public Utility
Municipal
& Industrial Issues
Stack
executed
Exchanges
or
at
all
on
trade
spect
prices
with
hurt
•
*
Limited
•
AND
internal
MEMBERS
MONTREAL
STOCK
international
fi¬
A Current report on
challenge.
Government
French
hope for the future.
give
us
They in¬
Canadian
Affiliate
W. C. Pitfield & Company
Limited
First, reduction of Government
subsidies in those
or
where
fields
STOCK
EXCHANGE
shown such interference to
effective
or
Second,
of
experience
has
be in¬
self-defeating.
the
progressive
those
restrictions
elimi¬
being
im¬
ap¬
W.C. Pitfield & Co., Inc.
30
BROAD
STREET
Saint John
NEW YORK 4
Ottawa
Moncton
Cornwall
Toronto
Winnipeg
Calgary
quantitative
still
.
•
Halifax
Montreal.
intervention
port
this Company
is available upon request
an
major policies of the pres¬
ent
nation
.
Products Limited
The fostering of
EXCHANGE
TORONTO
.
British Columbia Forest
re¬
EXCHANGE
OTTAWA
HAMILTON
LONDON, ONT.
KITCHENER
WINNIPEG
REGINA
SASKATOON
CALGARY
EDMONTON
LETHBRIDGE
VANCOUVER
VICTORIA
SAINT JOHN, N. B.
FREDERICTON
MONCTON
QUEBEC
.
rather
STOCK
TORONTO
CANADIAN
MONTREAL
helped
competition! presents
greater
The
growth situation
non¬
as
clude:
THOMSON & CO.
.
their
well
real
NESBITT, THOMSON AND COMPANY
_
as
areas—has
dollar
even
Affiliated
payments—with
dollar
to
A
liberal treatment
more
and
nancial positions.
Canadian
New York
net
some
found that
than
Orders
the
for
As
lessons might use¬
fully be taken from those neigh¬
boring countries which have
former,
of
Canadian Government,
trade*
internal
and
NESBITT, THOMSON AND COMPANY, INC.
Edmonton
Vancouver
Victoria
Telephone
HAnover
2-9250
Teletypes
NY 1-1979
*
NY 1-3975
34
The Commercial and Financial Chronicle-.
(290)
Business and Finance
Continued
from first
how
courts
Speaks After the Turn:of the Year
Works.
Bf/fMM/MJlISII
page
dilemmas
puzzling antitrust
at
MORE STATEMENTS
be
best
may
resolved.
The
of
IN
antitrust
The portion treating Section II
operation.
number of statements either
a
received too late
of the Sherman Act will
undoubtedly analyze generally
the relation of business size to monopoly power.
For
issue,
or
for
for mechanical
reasons,
be accommodated herein.
nopolization charge? Or, is the relevant factor the mar¬
ket power that comes with size in a given business?
Finally, should the fact that an admitted dominant
in
achieved solely by virtue of
a
subsequent
were
issues
When
the
defense to
In
like
example,
legislation
Trade"
authorized
ble
The year 1955 promises to be one of challenge and
opportunity for the nation's gas and electric utility industries. with a continuation of the growth trend which
How well
State law?
by
ACKER
intended
has been apparent in recent years.
goal? ' And, generally, how can the consumer best be
assured
the
economies
of
streamlined
distribution
market served
methods?
-
third
A
companies
.
.
lionth
of antitrust law to this country's foreign commerce.
gas
The
companies
vabroad that substantially affect our foreign commerce?
Or, on the other hand, should Sherman Act application
to conduct abroad require some showing of significant
ply
only
effect
'
schedule
their
Finally, the Committee analyzes crucial problems re¬
lating to mergers, antitrust administration and enforce¬
be
ample, there must
Should
the
should
sanctions
penalties in
day
this
of
decreased
in
tell
can
ex¬
dollar
whether business conduct will run
advance
the
between
tion
Trade
How can efficient coopera¬
Division
Antitrust
Commission
assured?
be
the trial of complex antitrust
and
the
Federal
And, finally, how can
provides answers to these questions
clear that its Final Report should be of
real interest to every
the
ABRAHAM
of
construction
new
rose
and
to
new
estimated
an
ties
Since this surprising
in building shows no sign
lessening, all forecasters are more
encouraging today than they were a
year ago and almost all agencies are
agreed that total construction activ¬
ity will rise another 7% during 1955.
1,200,000 units.
strength
population has
during
interest rates.
can
if
the
expect
a
products
among
materials
good year,
in
are
rival
industry
there is
no
as
a
addition,
1954
now
indicates
in
that
ample
manufacturers
consumers
are
almost
supply
and
the
all
and
Our
building
competition
various
types
of
many years.
In
becoming increasingly quality
are
situation, The Ruberoid Co. has intensi¬
advertising
have also diversified
and
promotion
activities.
We
our
products by entering the gyp¬
business and have introduced a number
of new and
improved
products
in
both
our
asphalt and asbestos-
cement lines.
I
to
am
convinced that the pieparations
work
measure
many
J.
ALEXANDER
the
of
Board,
during the past year and for'
businesses it was the best of
peacetime
period.
Industrial
production began to rise in the sum¬
any
mer
and continued
the year-end.
ness
rise
of 1954.
has
in
automobile
during
the
excep¬
and steel
last
quarter
This high rate of production
carried
will
strong throughout
This increase in busi¬
highlighted by the
was
tional
forward
give
the
into
1955,
economy
and
bolster
a
during this period.
Another cornerstone of the current
boom has been new con¬
business
struction.
New
estimated
better
in
•
down
the
starts
beginning of
than
rate
the
payments
previous
•
at
housing
1955
previous
and
V. J.
Alexander
are
to
be
at
aided by
year,
extension
of
reduction
mortgage
The need for additional roads, streets,
other public improvements will necessitate
substantial amount of, new construction for
a
year.
public
harder
of the
to
sell
more
will
prosperity which is said
for all business for 1955.
we
assure
have made
us
of
to be
a
full
in store
uses
in production is expected to continue
furnaces
were
enlarged,
modernized,
soaking
should
not
overlook
business prospects for
continues to grow at an
factors should provide our economy with
sustaining force
for increased productive efforts and an
expansion of
facilities to meet the needs of
a
growing and aging popu¬
,
of
its
Department
was
short-term
debt
very
successful in the
during
avoid deflation. The Federal Reserve
changed from
policy
was
recently
of "active ease" and it will be some¬
time in 1955 before we know the role that it will
play in
one
credit policies for the coming year.
new
pits added, and a new blooming mill
installed at the company's Monessen
we
the past year.
It has cooperated in the debt management
program with
Federal Reserve policies to restrain inflation
and then to
a
hearts
that
country. Our population
extremely high level. Current estimates place our popu¬
lation at more than 162,00,000, and births for
the past
year were close to the 4,000,000 level, a new all-time
high. The tendency of people to live longer is due to
better housing, ample food, research and
progress in the
medical field, and benefits of social
security. These two
extension
facilities for producing finished steel
products by 82%.
Blast
another factor
The Treasury
four-year, $65-million
expansion
and improvement
pro¬
gram that increased its capacity for
making basic steel by 48% and its
open
is
trying to estimate the future
our
lation.
well into the second quarter of 1955.
In the past year, Pittsburgh Steel
completed
during 1955.
There
Pittsburgh Steel Company will produce and ship more
1955 than for any other
year in its history.
During the last three months of 1954, the company's
production and shipments of finished
steel reached record high tonnages,
although still below the potential
capacity of the company's new steelmaking facilities. This upward trend
terms.
schools and
'in
finished steel products during
slightly
a
Preliminary estimates For new plant and equipment
during 1955 will reflect only a slight decrease from the
AVERY C. ADAMS
-President, Pittsburgh Steel Company
fied its selling efforts by
adding to its sales force and
sum
the favorable effect
The arts of
producing and transmitting gas and electricity.
i
whole
shopping carefully before .they buy.
To meet this
increasing
appear
expansion programs of the
and electric industries, the cost oi utility service con¬
tinued to decline in. 1954.. This result was^due to4incosts brought about by improvements in
very
Planters National Bank,
Memphis, Tenn.
I
Every new year there have been perennial
outpourings
of words to
.prognosticate the business future for the
country. Business conditions at the
beginning of 1954
were unsettled and the
business recession then in force
was
threatening to become a major
disaster.
The
depression failed to
the demand for gas increases.
believe
to
reason
products is keener than it has been in
conscious,
the
Union
In spite of the tremendous
on
of
generally in
Southeastern
in
V.
1954 in spite,' of the highest
creased usage by the customers and
is
ap-
States and
generally good
throughout the country. Purchases of sound
participa¬
tions in American
industry still seem logical at this time.
gas
<
supply
of con-
to be
point
.
building
that individual companies will necessarily
prosper.
experience
as
by
as
good
The transmission
pipelines were extended during the year, - passing the
400,000-mile mark, and there is every indication that
this network will continue to expand for many years in
the future
dictated
a
petition such
annual usage of natural gas in history.
houses,
schools,
stores
and
buildings of every kind. Moreover,
this need is likely to be reflected
Herbert Abraham
in effective demand as long as con¬
sumer
incomes
and
employment
levels remain high. Building has been and will con¬
tinue to be further stimulated by the Federal Govern-;,
ment's policy of encouraging mortgage lending at low
Atkins
it
increased
Our
healthier condition when its
gains
are made as a result of
genuine com¬
prevails today. We look for
equity as
well as debt capital to be available at
reasonable prices
in fairly liberal amounts and
expect business to be
Murray
production
reserves
-
But
j.
serve
tended to become larger, it is appa¬
rent that there is a real need for
level
a
seem
serious
J9H
three years. The outlook for adequate supplies of nat¬
ural gas continues to be favorable as proved recoverable
more
seek
and demand; the absorption
pioaching
any
satiety; and business
k
double that of 1954. As the use
tinued to grow and as families have
prosperity.
system
has
been
given
latitude in the last year or so
sumer goods doesn't
try's fastest growing markets ii} 1954 and is expected
to continue in this position during the coming year, with
forecasts indicating that more than a million new gas
househeating customers will be added in each of the next
con¬
industrial
IHimKSm
Househeating continued to be one of the gas indus¬
The reasons for optimism are well
our
required to
of
viewed
we
now
regard this
strong additional stimu¬
as a
to
W'JEIl
its customers. As only one ex¬
ample of the steps being taken to provide for this growth
in usage some 13,000,000 kilowatts of generating capacity
are scheduled to be added during 1955.
billion
$37
to
jmH
electricity increases in homes, farms, stores and fac¬
tories the electric industry will provide the added facili¬
housing starts totaled about "
As
•
in
of
of
founded.
billion during 1954 and. expect
made by the electric industry during
for electric power in 1965
industry confounded the
a slight decline in activ¬
ity by achieving the highest level in history. The value
building
forecasters who had predicted
growth
.Previously
monetary
rate
the past 75 years has been remarkable, the prospects for
the future are even more so with an expected demand
Chairman, The Ruberoid Co.
accelerated
concern,
growth
lus
practical incandescent lamp by Thomas A. Edison.
first
the
a
or
not
the
is
Chairman
While the progress
1954,
at
whole does not ap¬
a
population.
our
Light's Diamond Jubilee was celebrated in 1954,
marking the 75th Anniversary of the invention of the
public generally.
During
demands
company's
over-capitalized.
always recognized
important only in the last few
factor
years
*
as
unsound
with
fuels.
American businessman, as well as
HERBERT
and
expected ultimately to make nuclear power economically
competitive with that generated by coal and other fossil
issues be speeded?
If the Committee
alone, it seems
customers'
market
One
be
The gas indus-
our
a
pear
application of nuclear energy to the generation
of electric power took on greater significance in 1954
as Congress amended the Atomic Energy Act to permit
more
active participation by private industry in the
peacetime atomic energy program. Construction of the
nation's first full scale power plant utilizing atomic fuel
was
begun during the year in Shippingport, Pennsyl¬
vania, and we expect that 1955 will see accelerated
progress in experimental and practical nuclear reactor
research.
Private industry study and research groups
all over the nation are continuing activities that are
advisory opinions, beyond its present merger clearance
and "railroad release" programs, so that businessmen
afoul of the antitrust laws?
will
I
some
the
1955. The
Should the Antitrust Division issue
value be increased?
amount
can.
ATKINS
more
of $1
retained.
be
Perhaps
construction
to add another $1 billion of assets
determination of whether the
a
criminal
Act's
Sherman
for
enforcement area,
similar
and
we
sound basis for
optimism, in my
stocks have moved up too
rapidly
in the past few weeks and are
more than due for a cor¬
rection of reasonable
proportions, but the foundation of
opinion.
Ernest R. Acker
ment, as well as exemptions from antitrust prohibitions.
and
current
wire
/
-
strengthening
M.
We enter 1955 with
mil¬
the
try and pipeline companies continued
to construct new facilities to serve
trade objectives?
administration
a
its
expended this year.
application of antitrust abroad best be reconciled with
achievement of our national security and foreign
the
to
tubes,
demonstrated
now
& Company, Inc.,
Charlotte, N. C.
companies expect to be serving
by the end of
cording
seamless
*
J.
expenditures for new plant
irt
the - electric
industry in
1954
amounted to $2,800,000,000 and ac-'
the
In
50
basic steel into finished
our
strip,
further
Annual
broadly, how can
More
domestic trade?
our
on
their
1954,. while
for
1955.
American
by
activities
those
to
in
and
President, R. S. Dickson
million customers
29
leading question here is: Should the Sherman Act cover
activities by American companies abroad? Should it ap¬
connected
customer
our
the
-
indicated by the fact that the electric
considers is the application
that Report
area
our
make all of
we can
avenues
by these industries is
its
achieved
Act
Robinson-Patman
In
past, we have had
steel in
semi-finished form.
competitive, we couldn't sell
grew
position in the future.
The magnitude of the
the
has
of
markets
position
a
Progress of the company will develop along two lines:
(1)
Further improvement of present facilities.
(2)
Further diversification through end
product integration.
We are definitely
exploring and considering all possi¬
President, Central Hudson Gas & Electric Corporation;
fashion, the distribution sector considers, for
whether we should retain present Federal
immunizing from the Sherman Act "Fair
contracts
R.
one-third
the
Today,
—EDITOR.
ERNEST
added
were
in
with other producers for
business.
wire products—that we have
sell in competitive markets.
lawful
allegation of monopolization.
an
steel
products—sheets
"Chronicle."
patent grant, or by superior business methods, constitute
a
the
us
semi-finished.
could not
These will appear
of
of
sell
to
publication in today's
instance, is a business' absolute size relevant to a mo¬
market power was
Allenport Works.
Completion of our program has put
share
Quite
New hot and cold rolled sheet mills
the
to compete on even terms
SUBSEQUENT ISSUES
Report will consider these dilemmas in all areas
Thursday, January 20, 1955
Avery C. Adams
The rapid rise in the
stock market during the past 15 months has caused con¬
cern
in some quarters and the Federal Reserve Board
Continued
on
page
36
.
'
t
Number 5396
Volume 181
;
.
.
lj
„*•
( 1
The Commercial and, Financial Chronicle
(291)
35
■
r
To make
sure
new sources
has
gone
more
than two and
a
an
of iron ore, and to
active example
with energy,
4
quarter billion dollars since 1945.
into additions to and replacements of facilities, to develop
learn to make better use of older sources. Since
1901, U. S. Steel has kept pace with America's
is
jf
the nation will have the steel it needs in years to come, United
States Steel has invested
This money
'~
*
i
•
requirements. Today, U. S. Steel
of almost 265,000 workers and 277,000 owners cooperating
enterprise and faith
as your
partners in America's progress.
i
lii
AMERICA GOES FORWARD on
lipl
MANY KINDS
five-mile Straits of Mackinac Bridge being built by American Bridge
m
steel. One dramatic useof steel is in the new
IfJIf
Division of U. S. Steel to link Michigan's upper and lower peninsulas.
an(j 0ther u; s. Steel divisions are also fabricating and erecting
the New York State Thruwav Bridge at
in New York
Nyack, N. Y., and skyscrapers
City, Philadelphia, Chicago and San Francisco. "
and forms of steel
are
currently required by U. S. industry,
types are being made available every year. Help¬
ing to better meet the demand is U. S. Steel's new Fairless Works at
; Morrisville, Pa., the largest fully integrated steel mill ever to be built
at one time. Other U. S. Steel plants have been enlarged or modernized
to improve ingot capacity, and provide steel in more convenient forms.
and
a
number of
new
sil
mti
wm&
i
frSft'SAMJ:
A.
■
»
-
,
i*
V
"i
.
immm
t
,
,
lii
11 lipiiliilll
«•
/lis
w/
*
Mm
r
SO THAT AMERICA
to come,
direct to
source
STUDY
will continue to have steel in.plenty for generations
discovered and developed by a U. S.
Steel subsidiary. At the
have been found to make better use of the ores already
available in Minnesota, Michigan, Alabama, Utah and elsewhere.
same
time,
GOES
ON
to make new and
better steels for America. Recent
developments include special stainless steels for the transportation and
chemical industries; non-magnetic steels for military use and for the
electrical industry; improved metallic and non-metallic coatings for
wire. Early in 1955, a new Research and Development Center at
Monroeville, Pa., near Pittsburgh, will be placed in operation.
U. S. Steel looks far ahead. Iron ore is now being brought
the mills of U. S. Steel from Cerro Bolivar, in Venezuela, a
ways
•.
Watch
THE
UNITED STATES STEEL HOUR
on
^msssm
television.
See
your
local
newspaper
smmrn
for time and station.
mmm
wmrnm mmmt
HP
+
36
(292)
The Commercial and Financial Chronicle
..."
,\
Continued
from
of
34
page
21
increased: margin
recently
60%
in
attempt
an
All
in
remain
incomes
business
the
at
'
-
the
stock
Eastern
for
Industrial
looks
1955
As
maintain
peace,
fleet
our
1, when schedules
and
a
the ideal
introduced
this
to
stimulate
These
beginning
conditions
types
which
"winter
17
of
one
DC-7's flew
our
point
one
We
achieved in the last few years
Industry
will
was
business and
high level of gen¬
of
We
engaged
are
of
of
labor-saving devices, for use in the keeping of
The
cost
of record
keeping has advanced
tremendously in recent years. Higher wages, overtime
premiums, shorter work weeks have combined with a
great increase in the amount of record keeping re¬
quired in business today to produce this result.
The
cost
clerical
of
work
has
become
one
of
equipping
five years
or
records.
The
year
passenger1 records
miles
performed
established.? Our
since
running 20-25%
the
ahead
revenue
year-end
carriers,
increased
model
were
the
duction
33%
more
than
the
number
of
factory
period. In
pro¬
radar
weather
1940
100 employed, people,
today there are 15.4 clerks per 100 employed.
At an average weekly wage of about
$60 the clerical
payroll of the country is $25 billion a year. To that
aircraft
amount
safety and comfort for
there
workers
10.8
were
during
that
clerks for
14-year
must
termine
flight."
be added the
of
cost
lation is
fringe benefits such
insurance, hospitalization, vacations paid holi¬
easily amount to $700 per
In
this
view of costs
should
increase
*
like these,
for
it is obvious that demand
type
any
of
equipment capable
economy
only where
as
an
a
whole.
This
feel there
in
reason
manufacturing
to
expect
1955 to
be
and
overseas
The
orders for
our
progress
climbing
new
use
example,
National
I
more
the
up
same
it
day
probably
a
of
year
does
this
new
offered.
finest
airline
service
This results from
our
is presently
showing
return
a
G T. Baker
ever
integration during 1954
of
one
the
best
years
in
BASSILL
Enka
fibers
Corporation
giving their
are
mar¬
filament
indicated
textile
industry
progress.
While American Enka Corporation
is
primarily
a
rayon
yarn
producer,
it has put nylon facilities into
opera¬
tion
during the past
which
year
per¬
mit exploration of potential markets.
Our attention is directed
to
these
textile
primarily
fibers, although other
two
man-made fibers should share in the
improved
The
textile outlook.
industry generally has been enjoying im¬
proved volume with many mills sold three to six months
Rayon staple fiber has been in strong demand
ahead.
during the past
year
with every indication of continued
expansion.
Rayon
sonal
filament
been
that
yarns
the
consumer
The
finance
consumer
had
in
L.
Barnes
duct
lack
of
companies
in
as
a
In
confidence
been
been
the
result
opportunity
to
the
1955
consumer's
dollar.
include
nylon "stretch" yarns originally
hosiery. These specially processed nylon
finding application in a widening range of
uses.
Nylon has
cord
longer
wear
through greater strength and improved
the
well
business
as
retail
waiting attitude
restored.
People
were
again interested in buying durable goods and, in many
cases, financing these purchases through consumer credit.
The confidence which customers of
consumer
finance
conclusion
it
appears
producers have every
reason
for 1955. For the
longer run
man-made
as
had
attention for the
has
1955 with
improved
an
advertising,
promotion
expanded in
have
the
are
tire
that
confidence
trade
abrasive resistance.
1954
adopted
embracing
program
and
pro¬
Donald
The effect of this lack of
apparent early
the first part
a small but
growing position in
market, and where its good features can
be used to
advantage, it should continue to grow. Blends
of nylon staple with other
fibers bring to the end
the
as
a
in
men's
apparel
inflation
by
industries
has
in
in
used
termi¬
accompanied
tire
largest volume of the non-cellulosic
Major developments which will grow in
impor¬
fibers.
tance
previously been present
governmental policies.
This re¬
was
in
A
be
should
rayon
Nylon
had
was
rayon.
education
launched and will
adjusting
policy advocated
the part of the consumer.
of
consumer
was
Administration
the
The American
Rayon Institute was formed recently
by the major rayon producers to bring to the
consuming
public a clearer understanding of the many desirable
share
the encouraged
to
automobile and
1955, should result in increased use of tire cord. This
type of rayon is also being adapted to other uses. Ex¬
panding markets are being developed in high and low
pressure hose, conveyor belts,
V-belts, industrial and
decorative tapes and
carpet backing yarns.
fir
consumer
had
pay
and
features
past and the result¬
economy
present
consumer
year
ready and able to provide the public
the
•
However,, the last survey of consumer, anticipated
buying of durable goods, conducted by the University of
Michigan for the Federal Reserve Board, indicated that
for
our
yarns and staple.
plant capacity com¬
ing to more than 2^4 billion pounds,
the man-made fiber industry will be
well
equipped
to
participate
in
With
with respect to his buying.
whole.
as a
The
the
stores.
the airline industry
We
are
entering
was
overtime
confidence
believe this forecasts the
bright¬
est New Year for National since
our
as
ant
nated.
in
traffic handled
good year
a
form the basis for
economy
companies and business gener¬
Korean War
on
an
con¬
of
BARNES
ally went through a period of read¬
justment.
The
stimulant
of
the
adjustment
I
beginning,
record set in 1953.
During 1954 most
which
routes, chalking
advance of 62%
few short
a
played in 1953. Second, there is in¬
creasing evidence that industrial ac¬
tivity in 1955 will equal the overall
opposed
most
On Jan. 2, 1955 we shattered all
previous records for one day's traf¬
than during
previously.
can
of the confidence in job
security and
future
income
which
he
last
dis¬
by
Airlines
arn
familiar with it.
our
one
the lack
E.
cellulosic
'
will all other
measure progress or
our
consumer
to the sound money
power.
since
Two factors in
The American
nance
throughout
the past year has been the
story in the airline industry
during 1954. Though the year past will be difficult, to
surpass in overall achievement it looks like we
are off
the
ground already and
with
dicates
-
will utilize
we
as
of
part of
of
is
this prediction.
,
President, National Airlines, Inc.
Outstanding accomplishment and
over
future
finance industry will have
consumer
in 1955.
normal
BAKER
vote
John E. Bassill
aircraft,
acceptance
necessary
confidence.
A manufacturing
capacity
recently published in the "Textile Organon," in¬
a
further growth in fiber
producing facilities
of 5%
in the coming year and a
half. Major, growth is concentrated
in rayon staple fiber and in the non-
a
de¬
President, American Investment Company of Illinois
the
for this expectation is the record made in
G. T.
fic
kets
survey,
the
products reached an all-time high. The year also saw
the introduction of the most extensive line of
new prod¬
ucts in the company's
history. We benefited in 1954 from
the sales impact of these new
products and expect them
and additional new machines to
be an important factor
in 1955 results.
an
thereby
DONALD L.
company's history.
1954. Both domestic
steadily with
I prefer to
near
our
wider
things
Producers of man-made
our passengers.
fully expect that in tne
ex¬
some¬
yarns while subjected to
both sea¬
cyclical market fluctuations during 1954 ex¬
In each recent year
the industry has steadily de- 7 perienced an uptrend in the closing months, a tendency
that should carry into 1955. Historic
patterns of product
veloped and expanded in order to provide the public
mix are
with the best in transportation. I believe that this
substantially changed for rayon textile yarns.
prog¬
Greater emphasis is being placed
ress
will continue undiminished throughout
upon coarser yarn sizes
1955, and
while the finer yarns'are in reduced demand.
that we shall again record new business
peaks as more
High strength rayon yarns for industrial purposes are
people every where take advantage of one of the world's
again in strong demand. High level operations for both
great bargains—airline transportation.
other
is every reason
best year in the
as
DC-6's to
farther perhaps than any other 'industry when
measuring progress in terms of time consumed.
done, however,
adequate and aggressive engineering and
will also be in¬
types of research. We are also
increasing our advertising and continuing a program
of intensive development in the sales
field. Altogether,
effort
consumer
JOHN
years;
be
can
electronic program both in research and
is being stepped up considerably. There
One
device
new
our
The entire industry has moved far in just
product development program insures new products to
open new markets and expand present ones.
In 1955 our company will embark on the most
exten¬
sive capital improvement program in its
history. Our
we
The
of
of it.
believe that the opportunity exists for
companies
our industry to advance at an even
faster rate than
creased
one
are
augment the favorable business
finance companies in 1955. All
aboard
used
Looking ahead is of little significance unless
We
in
on
equipment aboard all
also look back and
of
reducing them.
the
airline.
be
to
and
desirable and
a
President, American
major carriers.
We
days and others. This could
year per
set
as
the advantages of weather detection while "in
Our engineers and crews report that the instal¬
proving to be a great aid in attaining greater
employee.
group
domestic
any
currently undergoing tests
every
.
as
of
detecting
population
pe¬
country. Today there are 8,156,000 an increase of
3,519,000 or 75%. The number of clerical workers has
in the cost of doing business
4,637,000 clerical workers in
expense
today. In 1940 there
some¬
a
industry's history during 1955.
already'
planning greater
are
It is anticipated that
this growth
at
Most companies in the field
together should produce
passenger
are
of the previous comparable
riod. We, as are most other
the
fiscal
expenditures and efforts to sell and exploit our services.
Greater capital outlay is also planned for technological
and mechanical improvements.; In this respect we have
begun the new year by installing the first production
biggest items of
the
expenses
our fleets with the next step—jets—four
hence, will be astronomically high.
now
before us will undoubtedly see new
of
will likewise
trend for
taken
perhaps the gravest
problem confronting all carriers because future
the manufac¬
in
continuation
a
finance
economy
and achievement during recent years
solidly recognized in 1954 when most airline
between income and expense. This is
see
Increased
by the industry.
business.
Stanley C. Allyn
outstanding by about 3%.
will
sumer
securities advanced with renewed
eral
result
than in 1954.
progress
activity. There are other factors,
however, which specifically affect
our
industry
and
our
particular
a
will
This increase, of course, will make itself felt in the
earnings of the cash installment lending companies and,
assuming a continuation of the present Federal tax rate,
earnings for 1955 should be at least from 5 to 10% higher
progress
at last
which
pecting an increase in-outstanding receivables of
thing ranging from 5 to 15%.
vitality to score out¬
standing gains. The only somber note throughout an¬
other year of increasing revenues was the
constantly
narrowing gap—in spite of the most intense efforts—
should make for
ture
1955
what higher rate.
top speed at
This event, if any is
585-miles-an-hour.
of
boom
industrial
During the adjustment period of 1954 consumer fi¬
companies were able to increase the amount of
a
needed, helped recall the almost unbelievable
construction
building but also
anticipated increase in public expenditures for
an
dollars
Miami to New
minutes, reaching
confidence
It is believed
nance
as
flourish when
a
from
consumer
highways.
package" vacation
season
previous summer losses.
approached the finish with
Dec.
York in 2 hours and 29
demand.
are
all
Florida
forced to take losses.
were
we
Our year
on
in the form of new
products and improved versions of
older products which in themselves
affect
a
when
expected
only from private and
from
year
offset
off
pay
not
and expect this will eventually level out his¬
early winter, mid-January and early spring traffic
drops as effectively as our summertime packages have
ing markets for consumer goods. The
investments made in research
also
Florida
of
the
and
toric
huge
are
promotion
upswing in
not felt until the last
quarter of 1954.
this upswing will be intensified
by the continued
high production of the automobile and steel industries
peaks during Janu¬
vacation resort helped boost traffic to
during June, July and August, formerly an
annual period
the country. The continu¬
ing
increase
in
population,
high
employment and high personal in¬
come cannot help but spell expand¬
that
inaugurated between Miami
points.
advertising and
in
The real effect of the
was
summer
levels
new
is apparent throughout
years
is present,, but customers are in¬
borrowing larger amounts for such things
as
vacation trips, education and the
purchases of new
refrigerators, television sets, ranges, etc.
recorded by us on Febru¬
was
were
this confidence
terested
dozen East Coast
Aggressive
Looking forward to 1955, I believe that the opportuni¬
for our industry will be greater than ever before.
One reason for this appraisal is the general confidence
recent
when
our
February and March last year. Beginning of the
helicopter passenger service ever offered by a
ary,
first
ties
in
witn
and a Sikorsky S-55
most modern in the
tional's passenger traffic hit record
Register Co.
Cash
tne
along
companies have in the security of their jobs and income
a very direct
bearing on the amount of business done
by those companies. Not only do most people borrow
has
A brief summation of '54, as it relates to our company,
will perhaps reveal a better perspective from which to
examine the airline outlook for the year ahead.
Na¬
ALLYN
President, The National
btates,
Convair-340's,
making
ary
which
United
domestic scheduled airline
C.
capital.)
a
industry.
with confidence.
STANLEY
fleet, representing
pur
$i5,000,000, including the world's
the
DC-6's,
helicopter,
production, stable prices, reasonable
we can look forward to the future
savings, and trade,
of
coast
DC-6B's,
very
production should
Europe has been very noticeable
past year, especially among the Western
long as the nations of the world can remain
the
to
of
excess
propeller-driven commercial air transport. These
DC-7's have given us a big competitive edge along the
high at least during the first quarter, consumer
are rising, and savings are at an extremely high
nations.
in
fastest
to
•
outlook
moment.
in
50%
The recovery in
during
at
the
all,
favorable
level.
••
•
from
speculation
curb
to
market.
requirements
aircraft
new
outlay
Thursday, January 20, 1955
.
of
has
new
fibers
should
qualities in fibers
are
modification
outlook
markets,
an
to
of this
man-made
fiber
enjoy
the
growth
industry, especially
developed. The possibilities
and
of
tailoring of fiber combinations
individual
the
moderately optimistic
rayon, nylon and the other
continue
been characteristic
technical
that
to be
to
blending
the
permit
precise
important factor
in
needs
the
of
gauging the
ahead.
Continued
on
page
38
Volume 181
Number 5396
.
.
.
The Commercial and Financial Chronicle
(293)
f
Search is
Scientists
are
constantly probing deeper into the secrets of nature
—bringing
As
THE
PROSPECTOR
thrills
to
the
day,
the
search for, treasure, so does the scientist
as
he searches
out
the
secrets
of the
and better things to
new
than one-third of the work of
more
exist in commercial
not
Each
years ago.
the scientist seeks
process, was
is better
ways to
To find
new
wonderful
bring better living for all of us.
them, lie is constantly probing^
FROM
new
born of intensive search.
them back
together in different
always looking for something
The results of these achievements
us
and
uses
promising.
.
.
.
a
wide range
graphite products
.
.
.
sickroom and industry
important is such research? To¬
many
other
of carbon and
oxygen
...
a
for the
variety of
l/CCs Trade-marked Products include
SyntheticOrcanicCheaiicals
Electromet
-,
evekeady'ElasWighls'and-Batteries
LlNDE Silicones
'
Bakelite,VtnylitE, ana Krene Plastics
Alleys and Metals
'
:
"
„.
,
■
are
today—chemicals for
life-saving medicines and
ways—
new
METALS-
search
a
Pl5est-0:LtTE Acetylene
are
the
brighter future for all.
FREE: Would you
like to learn
more
about the
useful things research has helped bring to
you? Ask for "Products and Processes" book¬
let M.
\
Union Carbide
AND
30
east
CARBON
42nd
street
CORPORATION
(to
new
york
17, n. y.
Ill Canada: Union carbide" canada limited
—
Haynes Stellite Alloys
Dynel Textile Fibers
search and re¬
same—an
exciting key to
tists of Union Carbide,
many
serving all of
.
SEARCH... RESEARCHTTo the scien¬
quantities 15
TO
plastics.. alloying met¬
pro¬
product, each
CHEMICALS
new
that did
understanding of nature, and
taking the elements apart, putting
How
processes
you
als for stainless and other fine steels.
people of Union Carbide is in
viding products and
earth, air, and water.
THE TREASURE that
37
PRESTONE
Pl'ROFAXCas
Union Carbide
Anti-Freeze
-
^
r
-
'
Linde
J
Oxygen
National Carbons
acheson Electrodes
•/
•.
*
t
38
The Commercial and Financial Chronicle
(294)
...
•
Continued
The
from page 36
Electric Corporation
Gas and
Rochester
It
beginning of 1955 finds Rochester Gas and Elec¬
tric Corporation looking forward to another year of
progress and growth.
The metropolitan area of Rochester, which is the heart
of the territory served by the com¬
pany,
is noted for the stability' of
its enterprise and the highly skilled
character
of
Bureau1 of
As
its workers.
of
fact,
mat¬
a
the
from
data
it should
be:
research
on
and
responsibility, and
that
both
on
Rochester has the highest percentage
This
significant
of skilled workers of any city in the
nation. .There is also a high degree
of diversity of industry among its
But in
800
classifications
industries used by the Federal Cen¬
sus
territory
also
high,
very
with
ranking
prosperity of its customers, Rochester Gas and
Electric Corporation anticipates a continuation in the
growth of its revenue and expects to add substantially
to its facilities to take care of the increased require¬
of
ments
Government
must
—j
The
pany
ment
this
year
formed
was
in which the
be the fourth
mate
potential of Niagara Falls.
an
active and
productive
company.
J
,
S.
for
year-
statewide
just completed
survey
ture
' "
farmers, indicate
unanimous
level
1954
of
in
is
the
that
bright,
In
in
level
cash
as
from
ule
that
be
of
for
While
resulted
1055 is
orders
businessmen have
-
-
•
HON.
With
r.
v
disposable income of
'
re-
-facilities
peacetime
food
and
as
levels.
much
fiber than
Abroad
as
we
10%
did
■
HAROLD
-
economists
see
farm
others.
are
likely to reflect
more
v
country
record
.000
1954
Ezra
Taft
Benson
National
has
credit
1955,
during
beyond
nor-
in
a
that
the
were
figure without
number
of
to 24
was
*young
rate in the Great
in
1954
turned
Depression.
out
to
be
the
flood
endless
private ele¬
meet
This
municipal
would include about $1 billion
sum
construction
water
and
sewer
%
;
meet
to
-
Highway construction, too. is becoming one of the true
billion
this
the
as
_
From
year.
ultimately,
figures
to
then
that
Administration's
program
gathers, momentum.
the
on
mav
$50
wiTl climb,
fantastic today
curve
appear
billion
ten-year
-
-
highway
^
Moreover, new highway construction is very dvnamic.
volume of construction for
It not only generates a great
filling stations,, garages and restaurants
but brings into
.being great shopping centers, housing developments and
factory growth.
*
With the development of the new "revenue bond" type
of
financing, highway construction will take on some of
railroad construction in a. much earlier
cay and act as a generator of many mililons of dollars
secondary construction.
Construction,
Industrial
including
some
Federal,
buddings, shopping centers,'stores,
includes office
-
may
hmcps
an(j
ware-
variety of other structures ihay go to $3
a
billion.
Military
but
construction
of
because
exceed $1
very
billion
in
has
been
declining
since
1953
recent hjgh level decisions it may
1955.
ahead through 1955 and into the immediate
In looking
~
construction industry to. continue to
"play a vitaUy important role in the expansion of the
country's economy. There is literally no end to the con¬
struction needs of this country as our population in¬
'future, expect .the
people
ages of
and almost
reach $2.5 biHion in 1955. Commercial-construction which
precedent
Harold
22
small-due to the low birth-
immense
giants of the industry and will likely reach at least $4.7
i
This, despite thefact
reaching the home-buying
the
growing needs.-
of
of
started
,
schools, high schools and, soon, into colleges.
increasing demands for electric power and
municipal services, utility construction may rise to $5.5
.
"*
mortgage
the medium
1,200.000 homes
1954,
except in 1950.
pay.
-the importance of
relatively-low incomes.
About
.
postwar babies pouring into public and
for
to the $40 billion
FHA
up
1955.
.billion in. 1955.
new
Act
and 30 years to
accommodate
To
-
especially
Housing
liberalized
thus opening
I
mentary
-
1,250,-
as many as
in*
*
.
veterans' homes purchased
to
:»
priced home market to families with
favorable prices than
*
hqmes
another
set
may
by-building
pew
since, the
This unpredictable factor could again
upset many calculations.
The billioq dollar Agricultural TradeDevelopment
Act will pernait us to
expand overseas sales
liial commercial transactions.
also
'l\'\
-
of
Present forecasts indicate that this-
j
Serious drought conditions have cut
deeply into agri¬
income over wide areas of the nation
the last two
years.
Corporation
;
School construction shou'd approach $3 billion in order
-
ap¬
i
'
•
to make VA loans on
certain in
-
v
cultural
Johns-Manville
buy it with a much lower doWn payrepay the mortgage over a
construction, indications are that
substantial gains in several important areas are almost
The main
BERLIN
ings will approximate $20 billion.
to
bought.
As for nonresidential
mark- in 1555 while the amount spent { :
for modernization of
existing build-
prices,
averaging
near
current
levels
through
1955, - with
little
change
either in operating costs or the
par¬
ity ratio. As in 1954, when hogs and
soybeans brought unusually high re¬
turns to farmers, some agricultural
products
con¬
operating with
area.
can
the basis of nothing down
on
will
the larger helicop¬
erection oRnew structures wilL be close
„
of
the best farming m e t h o ds — the
better breeds, /feeds and seeds—1955
should be a prosperous year.
Our
there
MoneY spent for new, construction andimoc'erniziition
in 1955 may reach an. all-time record of
$60 billion, sur¬
passing 1954's record of $54 billion. It seems likely that
1954.
be
can
heretofore and
than
eager
great expansion in hew
-
we
use
Vice-President,
«.
R.
comoar&ble
homes
payments at all in a veritable Veterans Administration
home building boom. Many lenders are now-wilhng and
now
'
periods
new
Many veterans are today buying homes with no down
Flight operations are
the Philadelphia- Interna¬
at
repayment
long
longer period of time.
,
gross square feet of
facilities
„
selling its present dwelling, can now sell ft to another
Jmerit
tier,.it
The
more
in
For farmers who make full
Uun <4.
employ 3,500 people'and the number is
likely to grow larger- during 1955-when the production
rate increases as
presently anticipated.
and this insures contin¬
uing expenditures for food and theother products of our farms at rec¬
ord
in
a
Substantial amount of light manu¬
facturing work is being carried out in the large Plant
Ardmore,, Pd*., which was leased during 1954. These
•
,
from
and
family which
,
market, but
now
V
previously occupied homeican be
a
ily, who formerly might have been deterred from mov¬
a new house in the suburbs because of difficulty
"
circum-
are
•'
time
ing to
at
,
mains high
expect to sell
they
possible for
new ones.
payments
tional Airport and
strong, free market.
consumers
that
so
as
old house and use the down pay¬
dwelling as people today trade in old
an
the favorable terms on which
developed and manufactured for the
available for commercial markets. The po¬
year
^conducted
1
strong demand for American agricultural prod-•
nets in prospect both at home and
abroad, 1955 -should
be a good year for the nation's farmers.
' •
*
a
last
Ultimately, because
1954.
become almost
may
-An instarce of the influence of this factor is t^t.a fam-
appears to be huge.
Piasecki's facilities have again been increased
diirirg
the
through
bought, under FHA mortgage insurance, with low down
being
are
for
For the first
an
proximately 856,000
a
There is no^ substitute for
family to trade in
cars
tential civilian market demand
ex¬
BENSON
Secretary of Agriculture
.
now
Housing Act of
legislation, it
;;
have
any
.1
a
some
ment to buy a new
«
plant is in Morton, Pennsylvania.
®
EZRA TAFT
see
National
of this
.
<
•
*
to
commercial
to
j
•
liberalization of FHA mortgage credit under the terms of
to
fested in increased production when
reservations
"
the
for
growing
:.
heavy rate of home building
years beyond
1955, if ohly for
that
appear
*
ground
at
construction
the fact, that homes continue to be easier to buy
expansion in many, commercial applica¬
tions of the helicopter where it lias a clear-cut
advan¬
tage oyer other vehicles. This expansion will be mani¬
-
■
specific local
or
following,
as'the
construction .remaining
new
continue
will
-a
sched-
these
general
not like y
for
tinue to be
be*
may
from
and
would
It
...
im-
industry,
figures
such
see
billion; and public new
about $12.5 billion.
-
in the coming year.
ance
up
regarding the
last two quarters of the new year, overall the
survey
reflects the confidence -and optimism of California busi¬
nessmen.
nonresidential
which should
the
may
$12.5
They are not of general significance ror should
they have any major effect on the industry's perform¬
operations.
some
an
we
publicly
21%.
billion
construction industry in its four major
segments: modernization increasing to $20 bi1!ion; private
residential new construction up to $i5 billion; private
stances.
the
makes
in
but in
sure,
ters
pressed
plays
cutbacks
stretch-outs
military
Beise
itself
1955
new
this process.
takes time'to translate
recent contract
almost
livestock
C.
in
construction, about $11.6
achieved by the
continued high level of out-!
1955. There have been some
offset by an increase in returns from
S.
In
-
Air
and
result
$12.9-bil¬
non-residential
construction about $12.5 billion or 23% : end
new
the
Army
to
to*about
24% in 1954; privately financed
or
financed new
.
general it is
out¬
crop3
machine
put in
approximately at the
1954.. A slight decrease
income
Navy,
likely
about 32%
Privately financed resi¬
amounted
construction
new
lion,
but to all
BERLIN
na-
for
accounted
outlay for construction in 1954—the lion's
However, the other three major segments of the
dential
requirements.. Development
the
a
continue
same
R.
a
structures.
expenditure
industry were not far behind.
assure a
large part of the total con¬
struction 'outlays in California.
Moreover, farm income is expected
to
us
phases of construction,
total
share.
good. In this lies
And the strength of
only to
-
mod¬
the
in
field
nonresidential
sorts of
the
of
common
technical
a
for current production
construction
which
the
\
-
accurate
survey
that this
Modernization
groups.
But government
his freedom in the largest
individual
all
as
those
backlogs
economic
particularly
sector
agriculture
new concepts to
actual production, /.
the major companies'in the business •
all have substantial order
an
the
exceed
California.
residential
such
will
1955
thought
look
belief that
the
are
While.it
fornia communities by the bank's branch managers who
interviewed businessmen, industrial¬
ists and
Besides larger
is naturally
porta'nt part in
300 Cali¬
over
as
con¬
optimistic about the 1955 outlook for the heli¬
in
volume
*
in
the
applications of
-Force
President, Bank of America, N.T. & S.A.
A
for
less
made in 1954 by the Census Bureau
was immensely
bigger than had
been known formerly. Approximately $8 billion, the sur¬
vey indicated, was spent in 1954 on modernizing owneroccupied houses .alone.
At least $9 billion more was
spent in modernizing tenant-occupied dwellings as well
by cooperating
consistent with
am
New
our
...
BEISE
do
much
are
field than for other
nationwide
copter portion of the aircraft
industry.
Primary immediate demand is military, and all indi¬
cations point to
steadily increasing use of helicopters by
many branches of the armed forces.
the full
>
CLARK
I
of
expect
ernization
a
consumption
will,
statistics
While
the nation's population grows.
as
DON
program,
the development by private enterprise of
power
I
This
panding, changing, repairing and maintaining the coun¬
President, Piasecki Helicopter Corporation
which is designed to make
atomic power plants a practical economic reality, has
been making good progress and will be pushed even
more actively in the year ahead.
Rochester Gas and Electric Corporation, together with
four other major power companies in New York State,
will continue in 1955 to endeavor to obtain the required
Congressional rand other approvals in order to consum¬
:
—
"
.
showed
Milk
huge that it will represent no less than
country's total output of goods and
the
try's huge nunr ber of existing structures.
com¬
has participated actively in research and develop¬
activities of the Detroit Edison Nuclear Power
Project.
person
so
of
other type of industry.
;
195* grand total of $54 billion rolled up by the
industry is composed of $37 billion for new construction
and about $17 billion for "modernization," the term gen¬
erally
useu
to oescribe modernizing, remodeling, ex¬
long peacetime era that we
hope lies ahead, God willing, the strength and leader¬
ship of this nation will largely determine freedom's fate
in this twentieth
century.
-/
'
- -
area.
1955 will
per
the great
strength of our republic.
the United States is
important not
the free world.
For in the
to bring new indus¬
1954
in
total
and
can,
or
leave
.measure
its customers.
which
pounds
79
—
bulk
Tne
need to be done and that cannot be done
by
individuals
-
Development
Council
beef
capita-utilization,
things that
The company is continuing its vigorous sales promo¬
tion
programs
and is cooperating actively with the
Rochester
Metropolitan Area Industrial
tries into
of
expected to-increase
and
_
consumed
record amounts of chickens and eggs.
view of the character
In
We
in
\
every
than in any
1908.
quantity
as
per
the top
States.
and
sumption per capita is expected to rise.
M. Beebee
Alexander
level of
16 cities in the United
meat per person
1907
except
one-
services
1954 went into construction.
pointed out that the construction industry
is not only the nation's largest, but it stimulates almost
of
assurance
well
indicated by the
employment is
is
the
trutn
than
More
spent for goods and
money
It might be
of custribution.
processes
in
defense.
services.
education, on individual
oq increasing efficiency
record
of
fact that the
of record
year
represented
here., The
the industries in the
are
strength
the
is
progress
156 pounds of meat—more
manufacturing
of
the farms and in
prosperity, outdistancing
national
1955, when the Gross National Product is likely
billion, the $60 billion of construction
one-sixth
will
Supplies of major crops and of livestock and livestock
products will continue large. But consumption has been
rising, too,-r Our people in 1.954 consumed per capita
establishments.
manufacturing
A.ll
shows
Census
the
r
to be at least $360
tomorrow.;
the
agriculture and
the United States in
is
freedom and
S.
U.
both
seventh of
unlikely that Congress will vote to return to a
system of high, rigid farm price supports. The close 1954
elections did not change the complexion of Congress
enough to reverse earlier approval of flexible supports.
We have forged ahead in many areas. Sound, realistic,
forward-looking laws have been enacted. The down¬
ward slide of farm prices lias, I think, definitely been
stopped. The emphasis in agricultural programs is where
The
ter
present high level of national
and
of corn, dairy products and
than in 1954.
BEEBEE
M.
ALEXANDER
President,
build-up in surplus farm products has been ar¬
in some cases reversed.
Carryover supplies
vegetable oils will be smaller
rested
Thursday, January 20, 1955
1
R.
Berlin
creases
at
phenomenally rapid rate and as people
one, part of the country to another and
a
.
The construction industry
outstanding-prop; in the
migrate from
.,
-
■
Continued
an
page
40
.
Volume 181
-Number 5396
...
.
The Commercial and Financial Chronicle
(295)
BETHLEHEM
Some
WORLD
CHAMPION —In
May, blast furnace *J"
at
the
by producing 61,424
amounting
This
to a
record
daily
beat
LARGER
of
Bethlehem Steel's
Sparrows Point plant established
record
month
tons
average
and
by nearly 5000
tons.
.
*
the
tons
progress
MILLS-The
in the
to
program
year
saw
modernize
enlarge the structural mills of the Saucon divi¬
sion of the
of pig iron,
of 1981
STRUCTURAL
continuing
world
a new
Highlights of W54
structural
Bethlehem, Pa., plant, where wide-flange
shapes
nearly fifty
were
years ago.
first rolled in this
The improvements
country,
under
now
MORE
ore
ORE—Atthe year's end the above iron-
project at Marmora, Ontario, Canada,
was
nearing production, with removal of the 100 ft
capping of limestone nearly completed. At the
Grace Mine, in
the
Berks County, Pennsylvania,
sinking of shafts continued through the
*
former
production record, held by furnace
way
"H"
Sparrows Point.
at
at
TANKER
QUEEN-Early in the
tanker World
sel
built in
Glory, largest commercial
this
country
next
to
Mass.,
yard. The World Glory
million
gallons of oil
trains of 100 tank
—
cars
tank trucks 30 miles
had erected
ves¬
or a caravan
more
rolled
works.
of
the
long.
of steelwork
was
than
mile
a
Buffalo. Much of
plant and fabricated
The
month.
BRIDGE —As 1954closed Bethlehem
at
Lackawanna
tons a
large portion of the steelwork for the
a
the 11,500 tons
I6V2
the equivalent of 20
each,
210,000
along the Lake Erie waterfront
Quincy,
can carry
percent, to
High-Level bridge extending for
the liner
United States, was launched at the
by 50
HIGH-LEVEL
the
year
will increase the capacity of the structural mills
Bethlehem
at
at
High-Level bridge will
Bethlehem's
our
Buffalo
connect
year,
with the production of iron
to start
steel needle is the
at
Oklahoma
from
the
antenna.
This
STEEL,
new
AND
SAFETY
EARTHQUAKES"
Bethlehem Pacific color movie
plants
—
IN
explains how earthquakes originate and how
Lackawanna
places
use
of
—
among
won
Section
Contest'
for 28 minutes, and is
Council.
During the
now
runs
available for showings
before profes-
sional, educational and civic groups.
-
•
from'" January
without
Four
Bethlehem
a
first, second,
third
and
fourth
large steel plants in annual Metals
steel, has proved effective in resisting seismic
forces. The film
—
Bethlehem, Johnstown, Sparrows Point and
construction of sound
design, with the
STEELMAKING
sponsored
1 to May 5,
disabling injury-
by National Safety
the Johnstown plant
year
more
to a
ran
than four months,
single employee.
ground
The
the
to
tower
plant, totalling
over
in
took
"MEN,
new tower
City, which
of Station KWTV
measures
100
tons
DISCS
is braced
by 24
alloy steel
5 miles in length and
FOR
were
rotor
guy
cables
Williamsport
more
weight.
WIND
plenty of ingenuity
problems that
1572 ft
tip of 'its soaring
of Bethlehem strand, made at the
ROTOR
—
expected
TALLEST MAN-MADE STRUCTURE-This
than
with
Niagara section of the New York Thruway.
ore
in late 1957.
to
TUNNEL —It
handle the tricky
involved in forging these
discs, 18 ft in diameter, 9 in.
thick, and weighing 48 tons
each.
They
diameter
are
the largest-
forgings
ever
made
by Bethlehem, noted for its
production
of forgings
unusual size.
of -|
BETHLEHEM
5TEEI
39
40
(296)
Continued jrorn page
cities
from
suburbs.
to
stamping service. Planned in its operation is the use
sheet metal dies made of Allite (various types
zinc alloy) or plastic materials (including the new
epoxy
materials) separately or in combination with
each other, or with the traditional hard die metals such
as
steel, cast iron, etc.
This service is designed for
the making of model changes more rapidly and at lower
cost in any hard goods line.
-
38
of construction
level
high
A
the country's growth and the ad¬
vance of technology open up wider horizons that assure
continued prosperity for the nation.
naturally follows
as-
BERRIDGE
A.
WILLIAM
On
Company
Economist, Metropolitan Life Insurance
sition
form, have responded together in timing during the cur¬
rent revival—as they had done during the modest reces¬
sion
between mid-1953
and mid-1954 approximately.
Not, only in timing, but also in am¬
The
industrial out¬
116 to 104,
each being
its top month '
from 137 to 123
only 10% from
put
—
down
persistently
registered
improvement. Early in
nomic
both
been
had
William A.
1954
of
Such
tend to pave
the
for
in-the long
might,
situation
a
way
run,-
felt
the
was
of those who consume their products.
latent
raise
instead
reduced to
been
leaders
the
is
travel
to
do
the
record
1953.
year
happen to agree with the apparently
more
is, after all, fairly
narrow:
of the factors
affecting
unfavorable.
and
;
Gross
National
Product
Industrial
Activity
Industrial
Employment
(all
goods &
(factories
&
$365
services)
I
confident
am
of
in
growth
northern
that
the
and
$357
billion
Wages & Salaries
(private non-farm)
(total private)..
1955
central
FRANK
II.
After
who
considerable
are
109% of 1947-9
1 44% of 1947-9
reasoned
headquartered
estimate
industrialized
in
that
the
Detroit
business
territory will
for
A
in
run
1954.
our
views
in
ness
year
1954,
profound
this
is
for
exerted
Great
industry
credit
lines
advanced
of
the
the
that
the
by the auto¬
its suppliers.
be given to all
1954
complishment
Frank
H.
firm
ttiaiiop
was
to
support
automotive
holding
cent
of peak
1953.
the
a
similar
fashion
on
the
1955
on
the
be
4%
of
30%
the
over
'53,
Tax.
a
greater
rate
in
company
1954.
Every
of oppor¬
year
due
This
to
tax
in
the
end,
v1
than
upturn
at
similar
a
enabled
-
in
a.
vastly ,mp
r o.y e.d
die
and
the
least
this
of
electric
to
to
James
our
B.
was
deliveries
a
lion
1955
for
cilities.
on
close
in
the
the
year
last
quarter
with a net
steel
our
88
some
the
of
and
con¬
again
as
munici¬
<
mov¬
; :
\
;
/
'
of" the icompleted
turnpikes- emphasize
industry which will pay the lion's
maintaining new roads, once they
natural
also
completed,
of
out-of-state
gas
permitting
natural
in
That
production
the
much
it
is
of
bring total expenditures for
new
struction to about $1 y2 billion in the decade since World
War II.
Our construction expenditures in
1955, how¬
will be less than in 1954 because of the company's
progress in building up its gas
and electric reserves over the past several
years.
\
119%
"
ca¬
It would be
of
the
all-
1953.
steel
ber
of
tremendous
goods
increase
in
used
the
home..
indication of the poten¬
market
is
homes
new
will need
consumer
capital
automobiles, and for
metal
containers,
and
items
tial
more
than
the
One good
the
large num¬
planned which
refrigerators, stoves, wash¬
machines
equipment
and
made
all
of
the
steel
other
for
Joseph L. Block
the
housewife.
Agriculture may also be a good market for steel equip¬
1955, and there will be a great deal of steel used
into
con¬
average
with
compared
represent
for
use
appliances,
in¬
expect to spend approximately $120 mil¬
expansion and enlargement of our fa¬
would
enlarged
tons
now
industry
its
ing
be ^produced,
1954.
important to the outlook for
because
trans¬
gas
wil
in
million
that
goods
year-
an
of
12
is
steel
brought to 2,528,000 kilo¬
generating capacity built by the
our
1947-49
80%
within
It
At the
million
pro¬
I believe that at least 100 million
pacity of the industry.
plant
on
industry should have its third biggest
time record set in
lines.
further
This will
half
time—the beef cattle
so on.
ment in
in
highways, bridges, public and commercial buildings,
factories, and machinery.
we
Government's,
added
JOSEPH L. BLOCK
The
system of from 550 to 700 million cubic feet of gas
day.
In
premium
a
duction year in 1955.
tons of steel ingots
our
the
be
must
the
Blac*
The
connected
major looping operation
system
years—the
this
President, Inland Steel Company
installed
in
ten
To
:
of
customers to
new
1954 by all segments of govern¬
increase of $650,000,000 over a
built, is the truck operator, if he is not priced out
by disproportionate taxes.
well
sav¬
*
'
If
more
siderably
steel
is
consumed
in 1955 than
in
1954,
con¬
be produced.
That is because
production was sustained, in part, by
steel used up out of inventories.
More steel was con¬
•1954's
sumed
there
drawn
more
must
industrial
than
is
no
produced.
That can't
comparable
reserve
occur
in
again because
inventories
to
and, in fact, steel might have to be
duced to replenish inventories.
upon,
be
pro¬
.
In
will pro¬
.large sheet, metal
words.
$6,400,000,000
out¬
ever,
vide
replaced
Pennsylvania- Turnpike, for instance, passen¬
six to one. Yet; commercial
vehicles are paying nearly half of the
gross revenues.
steady and substantial
This plant
has
estimated
an
ger cars outnumber "trucks
since the close of World War II.
our
crease
throughout the country. We are pres¬
building a plant for an additional facility. The
building will be provided with'the latest.
apd
modern equipment.
It will represent an expendi¬
million dollars.
next
alone.
the segment of
share of the cost of
On
of
rate
trend..
us
ently
a
Action
into
an
that
are
sales
The
this
customers located
of close to
the
Experiences
j
•
to
quarters
connected
100,000
the
mission
our Richard Brothers and Hercules
interchange¬
able punch and die service to .over
4,000 metal-working
ture
as
Actually, good-roads have a definite effect on ; the
consumer price of beef,
oranges, lemons and the prod¬
ucts that machines turn;out; among other things. '
i
generating capacity was just short
of 4,000,000 kilowatts, with an additional
540,000 kilo¬
watts of capacity under active construction.
large
most
out
disappeared
of the market
year.
that
customers
year
company
per¬
ing has given us courage and financial help, as it was
designed to do, to further invest in the American econ¬
omy.
In the latter part of '54 we built a plant to en¬
new
system.
translated
;; with goods roads, and
economy.
primarily
Profits
in
our
A
Excess
a
our
of
watts
under
approximately
elimination
by
than
'
Completion
Corporation our sales in 1954 were
'53, which was the best year in
company's history. In '54 we estimated profits will
than
stands
has
ing to markets losses less weight the faster it gets there;
the citrus fruits journeying from the groves benefit from
reduced spoilage?; the heavy piece of replacement ma¬
chinery can be made to produce goods in faster time
other
ac¬
At Allied Products
less
more
palities now committed to the improvement of roads.
system, and is the largest steam plant west of the
Mississippi River.
We feel that the
national
sign
Emotionalism
much money from the treasuries of states and
Major construction accomplishments of the year was
completion of our new Pittsburgh Steam Plant, of
600,000 kilowatts capacity. This is now the largest plant
improvement forecast for this area will make itself felt
in
for
and $2,300,000,000 more than was spent in 1950.
tribution
the
Gross
few
need
all hands pitch in to develop a better
represents
in
gram
our
more
sufficient to lend
National Product within
It
year ago
more
than 100,000 customers in all branches
operations, exclusive of customers added as the
result of properties
acquired during the year. It was
the eighth consecutive
year in which we have connected
of
comforts and added safety features
incorporated in all of their "spank¬
ing" new models.
It is our judg¬
ment
The
cover.
encouraging
begins:
as
highway
was
ment.
moderate
electric
continue
showed
gain
upon
styling,
mechanical
additional riding
improvements,
another
year
scene
national
-*
-
only
three
customers
of the automotive manufacturers for
the
of
will
upsurge
and
must
new
to
Good
roads
make
good- business sense.
Numerous
examples could be cited of how this works in practice.
witness
appear
"
and
indicates
New
the American economy
motive
will
served
into 1955.
busi¬
emphasized
we
influence
our
that
presenting
outlook
all
substantial
a
growth
highly
above
in
ago,
the
on
in
10%
leaders
it
area,
1955
about
is the only
transportation
this mileage is apparent every day.
cover
Meanwhile,
residential
new
first
gas
quarter
look
business
the
our
showed
Corporation
with
of
showing
gains in
last
discussion
level
After
BISHOP
Products
miles
additional
the
BLACK
California
bear out this forecast.
1954,
President, Allied
B.
territory
construction,, would
...»
113.
with
-
Our own output figures for recent
weeks, the continuing growth
of
population in this area, and the high
106% of 19.47-9
„
our
fornia.
125%'of 1947-9
146
General Employment
truck
where
areas
.
service, promise to provide active demand for
products. There are just so many hours in a day
trucks to
the
tunity for business throughout Cali¬
current
114
mines)..
urban
in
economy—both favor¬
our
present indication is that 1955 will be
'
134
mines*
(factories &
have
busi-
media of
There is still
/
-
,
might
carriers
been replaced months ago bad itj not
i,
a
truck-selling activities in 1955. " \
For the longer term, population increases, principally
before
■
JAMES
numerous
1954
.
tion, accompanied by huge shopping centers, atomic
plant cities, etc., are the major reasons why we are
anticipating an improvement in truck-making and
'
being agitated."
now
hi
p
♦
The
President, Pacific Gas & Electric Company
But I
1953
er
amounting, in some instances, to as much as 46%.
improvement in their freight volume, the decen¬
popula¬
ness,
opportunity1 of presenting our thinking in this
has been very helpful to us, and it makes us more
as
"
.
w
tralization of industry and the growth in urban
time.
a
o
Ro
This vast expenditure is just a beginning in President
Eisenhower's proposal for a $50 billion highway pro¬
aware
who believe 1955 is at present likely to exceed 1954,
in such measures as are listed below. The range between
:
at
being replaced now. by
common
spent on highways in
able
ones
those years
road
one
to
The*re-
been for the recession in their
'55
-
even
•
The
outlook,
will exceed
(
This
way
on net balance—considering all
fundamentals, and in addition the
non
economic
postulates
which
nowadays
underlie
everything? I am not as optimistic as those who aver
1955
only
advice
the industry's pro¬
approximately "
September. - j-.*
instances, some of j the
In -many
premium
from what has
our
saw
equipment
the'
double
a
cue
which
10% behind the 1953 level.
"youngsters" in in¬
'■>*
•
; *
require much time in thought and study
they can be adequately evaluated.
of the many economic
that
to the
generous
paying the bill.
appearance
every
covery began last
from the
they have.
What is
gives
has
;
three
to
GAW
attitude
degree
a
It
two
we see an excellent
opportunity for labor
to exercise judgment and
statesmanship.
Compensation reforms of the magnitude and depth of
If the former have
healthy
as
last
year
pension fund administrators
management—a
Here in
into orderly consumption and
inventories again, the vigorous recovery
have
the
picture
business
in
duction and sales fall
leadership
might peter out, and a relapse might materialize. Even
that need not be serious; and certainly it is gratifying
that inventories at various stages in the distribution
process
whole
having real stability for the truck
manufacturing industry following a
employment increase requests
adequately
along
too
are
worn
of
being
pay
union
the situation partly wrong, and the products fail to
read
move
'55
Our advice to management in
reply to GAW requests is
to say, "Let's wait until the smoke clears on the un¬
True, the recovery was not wholly spontaneous, but
partly the result of what entrepreneurs in the automobile
industries
in
social
look
buying of equip¬
out rolling
new
replace
months.
horizon
contributed to these funds'
plus the earnings of these funds wisely in¬
supply retirement benefits for the "oldsters"
who
to
The
go
request for
for a single risk. Taking a
happened in the pension situation;
to
ready for recovery is what the market itself did.
other
one
of
surge
changed
the
of
In the drive for improvement in unemployment com¬
and for GAW, we have a similar situation
cede that the first or acid test of whether we were really
some
will
lacing
a
ment
stock.
pensation
the intermediate consumer.
and
year,
dustry
But the consumer is king—the ultimate and
And I am prepared to con¬
recovery.
in
bargaining. Once before man¬
down" for a double dose of*
hand through the political manipu¬
billion
$2
vested may
sound and firmly based
a more
the
of
the
that
succeeded
in expanding, as activity has, about half way back to its
mid-1953 top.
I am one of those who had more hoped
than expected that the subsidence would either run a
little deeper than 10% or a little longer (or both) thus
relaxing high production costs and further curtailing
inventories.
the
on
each
though employment has thus far not
—even
carriers.
"shaken
was
that
"doldrums," is in itself reassuring
in mild
after months
economic
the
on
to
viction in the minds of the
ings expanded to 40. The power be- >
hind
the lately developed uptrend,,
Bcrriuge
cloud
resolve
is the continued im¬
inter-city common
This is making itself felt
encouraging sign
most
provement in freight business of the
security payments, part of which
is paid by industry, and on the other hand through the
■;
securing by negotiation of private pension plans, paid
in their entirety by industry.
There is a growing con¬
eco¬
30%
about
at
lation
an
on
The
ago.
more
over-the-table
benefits,
equivalent yearly '
basis; but late in the year-layoffs
had subsided to around 20 and hir- '
workforce,
in
agement
Throughout 1954, both factory lay- ;
off rates and hiring rates have al- most
dark
UAW's
other
month.
bottom
to
sub-
employment
industrial
lot
a
all out for a guaranteed
annual wage. This movement should be vigorously op¬
posed by management. This may bring on strikes which
will adversely affect the '55 results. ■ Here, again, we
see the
union's double-barreled approach to obtaining
identical benefits—one through political means and the
plitude, they then behaved alike; for,
the 1947-49 base and net of sea¬
sided from
is
oppo¬
expected in '55 because
ability to conciliate issues.
proven
one
the
is
by the
dominated
Senate
and
manufacturing and transporta¬
optimistic today than it was a year
The outlook for truck
tion
Presi¬
realize our
we
improvement
President's
on
sonal,
House
a
while
scene,
-
President, The White Motor Company
.
party, we feel this should not have much bearing
the
on
political
has
dent
behaving true to
Employment and industrial activity,
the
BLACK
ROBERT F.
of large
of
short,
fording
.
we
expect to have
us. new
.of northern
and
a
good
year
in 1955, af¬
opportunities, for service to the
central .California.
^
Unless there is
people
±
...
-
interruption from strikes
...
.
v.
;•
.4
....
Continued
or
something
on page
42,.
Volume 181
Number 5396
.
.
.
The Commercial and Financial Chronicle
(297)
41
"?
Pure Oil's
new
system reduces costs, increases
sales, pleases customers
Last
April, The Pure Oil Com¬
pany
streamlined its credit
old-
system by replacing the
fashioned credit card with
con¬
venient booklets of I.B.M. cards
called Credit Checks. The many
advantages of Credit Checks
them exceptionally
popular with both customers
have made
and dealers.
efficient
system means increased sales,
greater accuracy, lower costs.
I.B.M. machines and
equipment, capable of handling volume credit
parturient utilizes the latest
other
business with
speed and efficiency at every stage,
preparation of Credit Check books to final sort¬
ing and billing.
Its greater accuracy mini¬
errors.
And it means in¬
creased business...
customers
.
.
.
more
steady
greater economy.
FOR THE CUSTOMER-PURE
Glove Compartment Credit
Checks speed up customer pur¬
chases, are safe, convenient, and
easy to use, and provide a per¬
manent record of car expenses.
This simplified, more
"tALEHTED" MACHINES—Pure's modern credit de-
ness.
mizes
There's good reason for the
proved popularity of this new
FOR THE DEALER-Credit Checks
time in writing up credit
business, giving dealer more time
for selling and offering improved
save
service.
tion is
program.
His entire sales opera¬
simplified.
from
FOR THE
COMPANY—The Credit
Check I.B.M. system
expedites
handling of volume credit busiThe Pure Oil
This forward step in credit
handling is another example of
Pure Oil's growth.
Company, 35 East Wacker Drive, Chicago 1, Illinois
Be
sure
with Pure
STAFF—Competent personnel, well trained
the operation of
the department's special machinery, keep Credit
Check procedures flowing smoothly at all times. The
TRAINED
in the intricate skills necessary to
increased efficiency assures prompt customer
and
service, better credit control.
billing
42
The Commercial and Financial Chronicle
(298)
Continued
from
else that cannot
lent
the
that
tion of
40
page
be foreseen,
now
present
upward
the outlook is excel¬
trend
will continue
throughout 1955.
BLAINE
ness year
point to
in 1955 and there
shoe
that
1956
holds
similar
has
such
forecasts
upon
the continuance of the
peace
all
pro¬
Korean situation, the expensive defense
the effort for
halted
but
extensive
operating
behind.
other
G.
road
for
this
building
program
presently
together with
country,
it is probable that the time
building
pas¬
Westinghouse Air Brake Company, since its founding
in 1869, a major supplier of railroad equipment, has
established
companies.
acquisition of
customers include
by
years
Today,
such
its
basic industries
road
program
1957.
The
house
fit
this
years.
will
defer much
of
tial for
On
these
Jan.
expanded
1954,
last
two
received
orders
by
our
believe
Owing to what
0.
We
in sales represents
a
believe that
deferment of business.
of
the
Freight
significant
improvement
in
traffic.
of products,
of
new
which
roads
and
gram
Company and will permit
it
to
offer
The volume of business of
research
Armed
and
a
to
Services, increased again in 1954 and
the trend to continue.
While
drop
cars
it is
we
kept
upturn in railroad equipment sales,
confident that
employment and
it
we
the
seems
•
i
-
:;>r
obligations of the Commonwealth of Puerto Rico and its agencies
standpoint of quality and yield. Not only do these securities afford
attractive return,
but their safety, in
municipal and
opinion, is equal
our
revenue
coming
better
fiscal
than
Consequently,
year.
for
the
past several
or
?•'
-•
v"V-J'r" -/f '
~
superior to similarly
obligations.
The Commonwealth of Puerto Rico, its
municipalities, authorities, agencies and
ether
defaulted
ef
political sub-divisions have
principal of
values and
at a
or
interest
coverage
of
on any
revenue
high level. The interest
on
or been delinquent, in the payment
obligations. Debt is low in relation to assessed '
never
bond requirements has been consistently maintained
these bonds,
moreover,
is exempt
from both
Federal and State income taxes.
>
,
Ira
.
Haupt & Co. is proud to have managed and participated in the financing I
public facilities of Puerto Rico. We maintain a continuing high interest
of various
in its securities, and faith in the
Ira
growing fortunes of this great Commonwealth.
Haupt & Co. is currently offering
d
$4,727,000
/
Ptierto Rico Water Resources
IRA
Authority
HAUPT &
CO.
Electric Revenue Bonds
maturing 1965 to 1990
Off
prices to yield from 2.70% to 3.375%
A
descriptive circular is available
Members New York Stock
and other
on
request
111
i
recognized and
on
-i*.
fa *s/-'-//-'
rated United States
now
BONDS
We recommend
an
are
Continued
'/<<.<***
from the
These facts
that something will be done about it begin¬
with
outlook
even
behind.
investment
an
is
which, in
with other national growth; maintenance has
appears
ning
operating results for 1955 will show
RICO
purpose
stimulate business
brighter.
PUERTO
In addition to their pri¬
repeat, harbor and channel development has not
pace
fallen far
extent
improvement, and that the long-range future is
With
create
We
expect
or
under consideration.
function, another and most important
the national economy.
the
'
impossible to predict the timing
of the expected
are
for
contracts
to
turn, will safeguard the general welfare and strengthen
Melpar, Inc., which has im¬
development
harmful
after all. A multibillion dollar highway pro¬
is in the making. Its primary purpose is, of course,
to expand the nation's highway system to meet the tredendous'y growing needs for it. Other public works pro¬
main¬
road
is
It appears now
realizes that curtailing ;certain
the national welfare and not
economy
We
used both
are
in
extravagance
believe is misplaced economy, our
Administration
mary
portant
higher
operating revenues, the increasing interest in moderniza¬
as
this line
the
grams are
Air
are being retired at a rate well in excess of new car
building, a condition which would change rapidly with
any
construction
the
we
considerable extent idle since 1951.
expenses
outstanding reputation for the
broader line to its customers in this country and abroad.
summer.
most
an
a
Westinghouse
Division
point reached in the
Boshell
long established manufacturer of
tenance, fits naturally into the business of LeTourneau-
increased, and that
Division's backlog, while still low
historically, is well above the low
E.
that
in
of
months
with
always
whose principal activity is constructing and
maintaining the nation's harbors and channels, has been
that
graders
almost
industry,
Company
quality of its products and its service to customers.
:
-
is
economy
leading to ultimate loss.
to
motor
then
Does
efficiency and uninterrupted operation and call
Misplaced
programs.
1, 1955, LeTourneau-Westinghouse
a
growing
a
product
and
it economy?
subsidiary LeTourneau-Westing-
company's
its
creasing business? Does any public
utility, with constant growth assured,
delay adding capacity to meet that growth? Does a wellmanaged business of any kind defer maintenance essen¬
However,
-
required to initiate the road
country
for
No
transport
organization1
defer
buying equipment needed for in¬
acquired the business and assets of J. D. Adams Manu¬
Brake
tomorrow.
industry defers
any
facturing Company,
building, petroleum, mining
irrigation, to name only a few.
Railroad
equipment remains an
important
part of
the
company's
business, and, along with other sup¬
pliers of such equipment, 1954 sales
and earnings were adversely affected
by the slump in railroad revenues.
However, we agree with those who
believe that 1955 will see improve¬
the
of
American
Emerson S. Bowers
Company and its Le Roi Division will both bene¬
from
construction
as
in
manage¬
calls such deferment economy.
programs,
and road
In
demands
demand
contem¬
and
ment.
efficient
productiveness; it
spending today to meet the inevi¬
table
the effect upon equipment manufacturers until 1956 and
Chairman & President. Westinghouse Air Brake Co.
three
is
adds to assets and
strong market for construction and earth-
assures a
moving equipment for the next several
Blaine
EDWARD O. BOSHELL
last
It
ment, waste avoidance, spending that
service, smoother braking, lighter weight and
vast
nor
What is Federal economy or other
economy?
plant expansion to meet
The
James
the
development
keeping pace with
growth. We believe
that this is harmful to the nation.
air-bases, dams and other public works in foreign coun¬
in
is
national
cast iron shoe.
uneasy
tries,
diversified
Neither
maintenance
sound
plated
I
Maintenance also has fallen far
years.
require less frequent replacement than the conventional
that exists in the world.
build-up
economy at Washington has
channel development during
and
harbor
the past several
brake
provide for
wijl
it
this
tests,
Federal
is
predicated
are
In
given evidence that
promise.
senger car
Any
The
and
rail¬
in both the Air Brake and Union Switch & Signal
Divisions, aimed at developing improved products for
our customers.
An interesting result of research carried
shoe.
BOWERS
Secretary & Treasurer, Atlantic, Gulf & Pacific Co.
freight classification yards and other devices manu¬
factured by the Union Switch & Signal
Division.
brake
signs
are
Thursday, January 20, 1955
.
S.
EMERSON
control systems,
the
on since 1948 in
cooperation with Johns-Manville Cor¬
poration is the jointly-owned company, Railroad Fric¬
tion Products Corporation, formed in December 1954 to
promote the use by the railroads of a new composition
busi¬
good
a
reducing operating cost should
the automatic traffic
grams
President, The Marine Midland Trust Co. of New York
Indications
in
and
We have supported our belief in the future of the
roads with extensive research and development
Gl
JAMES
facilities
stimulate sales of
.
.
Exchange, American Stock Exchange,
principal exchanges
Broadway, New York 6, N. Y.
1'
our
years;
page
44
Volume 1811 Number 5396
.
.
The Commercial and'Financial Chronicle
.
-
progress
seven-league
wears
Growth in Puerto Rico's
:
-
recorded
43
r
boots
living standards, according
to the Chase National Bank of New
•
(299)
York, "tops that
anywhere in the world—a 70%- rise in the
past decade."
/The great recent
the health and
of its
*
"
•
Y
-
.
'
.
*
;
tables below.
'* *
disclosed by the
k
V
-
l'
„
'
•,
.1'
-
J,
between
is largely the result of coordi-
the
andindustrial"
economic
agencies of the Commonwealth, the commercial banks
.
.
effort
nated
are
,
-
Puerto Rico's progress
•
^
population,, and in the
diversification of its economic life
;
..
advances made by Puerto Rico in
wealth
of
•
Puerto
Rico
and
the
and institutional investors.
.
ment
Development Bank performs
it may
a new
.
make
oil
a
refinery,
bonds to
many
for machinery for
or
may arrange
.
tasks. Thus,
a new
precision-
for the public sale of
provide funds for expansion of
extension of
individual
effort, the Govern-
loan for the initial construction costs of
equipment plant. It
or
mainland, and
In; this
a power
plant
system. Or it may undertake to
a sewer
interest investors in the United States in the sound hous¬
ing loan opportunities available in the Commonwealth.
The Government Development
Puerto Rico is
SIGNIFICANT
Bank for
THE
pledged to continue its vig¬
FACTS
efforts in these directions. The notable
orous
% Increase
During
1954
1940-54
Gross Product—millions of dollars...
277
750
1,186.0
328.1
Net Income—millions of dollars
228
612
970.7
325.7
122
289
435
256.5
362.0
391.1
3187
Net
stable foundation for the profit¬
employment of private capital and
credit
OF
RICO
1948
Income
per
capita—dollars
,
,
Bank Assets—millions of dollars,,,
able
ECONOMY
PUERTO
Fiscal Year Ended June 30
being of the Commonwealth and its people
a
THE
OF
1940
improvements already made in the well-
provide
ON
COMMONWEALTH
Value
of
vf&'M
lyif
-
•:
Shipments to and from the
millions of dollars
191.4
523.0
801.0
51,755
253,728
561,805
985.5
451.2
853.2
429.3
Revenues and
COMMONWEALTH
OF
PUERTO
25,952
DEVELOPMENT
the
RICO
JUAN,
PUERTO
RICO
closely
related to this
gains made in health and education,
BANK
|ip§
SR
as
improvement
indicated:
If
1940
Life
Rate per
School
Enrollment
.
;
1954
18
1,000 population
Expectancy
Public
SAN
139,470
1
Death
PUERTO
89,171
;|
liiii
437'4
RICO
are
FOR
|,
•
(excluding grants)
Not measurable in dollars but
GOVERNMENT
»
Receipts of the Common¬
wealth Government
—millions of dollars
M
mm
Electricity Generated (millions of kilo¬
watt hours)
.
318.5
161.2
—
External Passenger Traffic
States.
93.4
Mi
1
Mainland U. S.
from the mainland of the United
.
•}
"tj
7.6
46 years
286,113
61 years
505,151
•
||p
i«
44
The Commercial and Financial Chronicle
(300)
Continued
also
from
rates
industries which
those
for
better
lower due
42
page
the various commodities and materials
supply
which
us
with
past,
the hope of us
all, I
am
national
a
interests.
national
MARK
the
outlook
interest
for
well
as
for
demand
the
overall
These in turn depend on the prospects for
loans.
of great challenge and opportunity for those in the
banking industry. As in all competitive industries which
function in our system of free enterprise, those that are
alert and adjust to changing customer demands will
make the greatest contribution to our prosperity and
compensated
helped
business activity. Admittedly, we can
the future in only
see
very
dim out¬
line, but a brief review of the recent
past and the present provides some
basis for estimating the future.,
spending
Total
peaks.
from 1953 average
1954.
The prime factors accounting for the
decline in total spending from the
Mark A. Brown
peak in mid-1953 were: (1) reduced
Federal spending of $14 billion, and
(2) a $10 billion decline in the rate of inventory change.
These depressing factors were partially offset by mod¬
erate increases in spending by consumers and state and
local governments, spending on construction and on for¬
*"
largely to the decline in inventories in 1954, the
loans was reduced below 1953 levels.
Due
demand for bank
It
not until the final quarter
was
of last
that
year
a
stantial increase in the demand for loans occurred
sub¬
the
as
usual seasonal borrowers increased their bank indebted¬
and the
ness
inventory liquidation subsided.
factors accounted
Several
securities
for the reduction
purchased by banks in 1954
in yields
well as the
moderate reduction
in bank
loan rates.
They were:
(1) a continued high level of savings; (2) moderate re¬
ductions in corporate demand for both long and shortterm funds; (3) a reduction in demand for funds by the
on
as
Federal Government; (4) lower consumer credit demand;
(5)
a
Federal Reserve monetary policy of "active ease"
designed primarily to buttress the decline in business
activity and to promote an early recovery. Credit fac¬
which
tors
included:
interest rate trend
State and local
operated counter to the
(1)
substantial
a
borrowing, and
(2)
exceptionally strong demand for
an
Bank
in
earnings
interest
rates
and
for this favorable
showing include:
(1) Some benefit to
1954 loan income from the
higher interest rates on loans
Declining interest rates contribute to de¬
pressed loan income but with some lag. (2) Higher bond
prices resulted in capital gains from bond sales instead
made in
1953.
of losses
as in 1953. (3) The active easy
monetary policy
plus reduced loan demand made possible a considerable
increase in earning assets of banks in the form of invest¬
ments.
was
ditions
the
Bank manage¬
successfully
observers
business.
expect
1955
to
be
cope
con¬
with
banner year for
a
Total
spending may be up by 3% to 4% and
production should be back to about 1953 levels. Inven¬
tory liquidation and reduced Federal spending relative
to taxes are not likely to depress economic
activity as
in
1954. Recent stabilization of producers' durable inven¬
tories plus increased
inventory
sales and
accumulation
in
orders suggest moderate
1955.
Construction
spend¬
ing is likely to be up this year, but the moderate down¬
trend in spending on plant and equipment may persist.
Higher spending by state and local governments in 1955
should
about
Federal
offset
the
moderately
reduced
spending.
Higher consumer
job outlook should induce
spending with
a
level
higher
to
moderate
proportions.
If
favorable
business factors persist, a considerable expansion in bus¬
iness loans should occur before year-end. Interest rates
are
likely to be moderately higher this year. Factors
pointing toward this conclusion are: (1) Despite the
corporate
rise
due
for
a
further
moderate
borrowing, total
to
increased
credit
demand
for
decline
in
demand
funds
long-term
is
for
likely
to
inventory
financing, higher state, local and Federal Government
borrowing, more real estate mortgage financing, and an
expansion in
consumer credit.
savings combined with
a
(2) A
more
near
neutral
stable level of
Federal
policy due to improved business conditions.
velopments indicate that current policy is less
was
true
throughout
rates
easy
than
1954.
Moderately higher interest
of
of
Reserve
Recent de¬
bank
loans should
this year.
most
react
favorably
a
on
evident
many people postponed the purchase of
goods, including automobiles, until they could
obtain better prices or had the money in hand. But
they
limitation
of
did not reduce their standards of
tures
reduction
a
of balance
measure
supply and demand.
non-durable
goods
in
or
reduce his¬
statutory allowances for the depletion of produc¬
ing oil and gas properties. If either
were
even
increased
at the expense of a
rate
includes repayment of
that
people
debt, payments
tend
to
on
mort¬
their
maintain
living
mild recession
is especially significant to
Before the war, about 23% of total
disposable personal income was spent for food. Now
25% of greatly increased incomes
goes to supply the
table. This does not mean that more food
vigorous attempt
more
year
Their expendi¬
services
of saving.
However, people are
saving at the rate of $18 billion per year, which of
standards in
renewed and
the
living.
and
a
food manufacturers.
policy, it is quite evident that
by the Treasury Department to eliminate
per person
being consumed, but it does
done, net earn¬
ings would be quickly and substantially reduced by in¬
better.
creased
mean
that people
are
is
eating
possible
third
A
problem with which domestic producers
lies
confronted
in
the
in
the
are
approval
Phillips
While
case.
ruling affects
rather than earn¬
sub¬
stantial deterrent to development and poses the threat
that, unless circumscribed by legislation, governmental
control can and may logically extend to apply to oil as
well as gas.
It is to be hoped that our Congress will
give serious consideration to the need for legislation
which
will
afford
that
assurance
the
very
a
principle of free
enterprise will continue to function.
Qualified
by these considerations, 1955 may be ex¬
pected to be a year of active development work with
earnings comparable to or in excess of those of 1954.
Capital expenditures will continue at a high level. The
industry is a basic and essential part of the nation's
and may be expected to share in the increased
earnings which appear to be in prospect.
economy
HARRY A.
Chairman
casting
recession
came
the
product
it
and
decline
was
mild.
They
In
#
about
right.
were
terms
of
The
national
the
for
the
national
quarter of 1953.
tion got under way,
up
ceased
and
reduction
liquidation.
accounted
lower
This
changed
inventory
nificant trends which
The
movements
offsets
in
$22
the
bread,
sig¬
are
trend
still
in
going
on.
the
consumption of wheat
a desire for
greater variety in the
diet, together with the increasing level of
personal in¬
flour is the result of
which
come
that
has
made
it
possible for people
desire.
to
satisfy
The downward trend in home
baking has
about because the American
housewife wants more
leisure and more time to
spend in a widening horizon
of outside
come
interests, including gainful employment. This
trend, too, has been made possible because of
enlarged
family incomes.
of the
cent mild
interrupted by the great depres¬
'thirties, but they were not stooped. The re¬
recession apparently did not slow
them a all.
people desire hese things which increase their
standard of living and are
As
to
long
as
willing to work hard enough
get them, the trends will continue.
changes have also come about in the food in¬
amount
form
the continued
confidence of the housewife.
The
self-service
pre-packaged
foods
market
and
lends
itself
admirably
to
competition with other
through educating the housewife to
quality, con¬
venience and ease of preparation.
Another factor which is favorable to the
food industry
rapid growth of population in recent
years.
The
children born during the
past decade are eating more
to
there
of higher
merit
foods
is the
billion,
expenditures, new con¬
larger expenditures by
Harry A. Bullia
governments.
and
downward
terms.
nearly
$10
billion
production. While these two
like
were
-
to
swing
for
something
rate of
Along with the growth of national brands has come
the development of the
supermarket, where brands can
compete with each other and with other foods on
equal
As this reduc¬
downward
our
pastries were baked in the home. Today we
wheat flour at the rate of
only 128 pounds per
capita, and only one-quaurter of our baked goods are
made at home. Here we have an
illustration of the
and
security
inventory build -
soon
of
Perhaps the greatest of these is the promotion
growth of national brands. Such brands must have
high standards of quality which are
jealously guarded
by the manufacturers and processors in order to
gain
which has taken place since the sec¬
ond
most
and
$12 billion in the annual rate of
expenditures
and
Great
factor
in
was
capita
per
dustry.
principal
of
recession
consuming wheat flour at the
were
pounds
consume
to
was
the
we
200
cakes and
These changes were
quarter of 1953.
Undoubtedly
well that it would be
•
century,
sion
Inc.
about $14
billion—less than 4% from the peak
second
so
The diet of the American
people has undergone great
changes during the past 50 years. At the turn of the
BULLIS
of the Board, General Mills,
mild recession for 1954.
a
eating
living.
the
prove
fact they are
stances
given by the Supreme
Court for assumption of control over the sale of gas by
the Federal Power Commission, under the ruling laid
down
In
to turn to less expensive foods in many in¬
without endangering nutritive values. It is
ap¬
parent, however, that it will take more than a mild re¬
cession to reverse the trend of better
eating and better
costs.
tax
bank earnings
be
for
enforce that limitation and restore
larger volume
may
that
gages, etc.
The fact
struction
However, profits from security sales
credit, which increased over $7 billion between 1951 and
1953, went down one and three-quarter billion dollars
during the first three months of 1954. Since then it has
been rising slowly to about the level of last
year.
It is
course
consumer
and
as
maintain
durable
A year ago our economic weather prophets were fore¬
inventory build¬
Just to
•
still
toric
end.
a weather-eye open for
any excess speculation
they have raised margins; thus there has already
been a selective change in the credit situation without
actually firming interest rates.
*
The general pattern of consumer
spending reflects the
sensible way in which people reacted to the recession.
They refused to go farther into debt/ Total consumer
imports, is asserted in the weeks ahead it
probable that the President's cabinet-level fuel
policy committee will be forced to recommend action to
a
Employment will rise
an
and
seems
In the field of domestic
they
new
limitation of
between
as
ties have
industry
unless
freely
be
steadily during the past
consumer
is expected to increase the demand for business loans.
reductions
producer
an
Although seasonal factors reduce business loans in the
first half of the year, a rising business trend should
keep
prospects
However,
and
statesmanship,
which has thus far failed to manifest itself in voluntary
somewhat lower rate of saving.
A better business level with moderate
the
world.
free
spending
highways. It is also reasonable to assume
cars as fast as they are
finished,
a sag in those industries later in the
There is also the danger that a break in the stock
market might occur and cause uncertainty. The authori¬
be
situation,
for the
remedy
have every reason
year.
imports, must needs be patterned to meet the Adminis¬
tration policy of sponsoring increased trade within the
of
and
incomes
improved
up
obvious
houses
and there may
reflect itsglf in weaker markets.
The
we
danger that the public may not be able to absorb
some
new
increased
will
ings of the immediate future, it will
(5)
adjusted policies to
competitive business environment.
more
demand
the long-range value of gas revenues
banks.
exceptionally alert to changing business
and
Most
1955
liability of
some
is
do¬
principally
determined by the amount of foreign oil imported for
domestic consumption. The rapid increase in these im¬
portations, comprising 13.5% of domestic consumption
as this is written,
has forced progressive reductions in
the legally allowable rate of domestic production dur¬
ing the past year. In some instances these rates have
been reduced to points which seriously affect revenues
and which, there is reason to believe, it will not be pos¬
sible to hold.
However, any material excess of supply
through increased productive rates can be expected to
mestic
by
The elimination of the Excess Profits Tax
(4)
reduced the
ment
benefit
and
year
require increased pro¬
duction at the rate of nearly $5 billion annually, because
product has been coming out of stocks at about that rate.
Apparently new construction will continue at an ex¬
ceedingly high level during the next few months and
automobile production will be at a very high rate. There
of these
more
new
people find employment.
inventory reduction comes to
produce
The extent to which the
will
Curtis F. Bryan
1955 will witness
good last year despite the decline
loan volume.
Factors accounting
were
or
a
inventories at present levels will
nonexistent.
or
increase in
mortgage funds.
one
business¬
and
have in the past and that such spending will increase ak
substantial
earnings during a period when the
earnings of others are below normal
"
eign account.
for
to
in
more
refining, marketing and trans¬
uncommon
consumers
that consumers will continue to spend as
production of oil and gas is
Of the several components which,
segments
to about 3.2 million in
persons
both
high degree of faith in the future.
state and local governments will increase their
Although there is a basic
community of interest between
them, it is quite possible and not
Unemployment
of 2.4 million
7%.
down
was
rose
now
for schools and
industry.
production of good and services was
and industrial produc¬
a
optimistic. While Federal expenditures will prob¬
ably decline a little more, it seems logical to believe that
foreign.
with
are
that
evidence
retained
We
portation, comprise the highly in¬
tegrated and competitive petroleum
off about 2%
tion
further
to be
The
one
current
on
is
Corporation
industry and to what extent this demand will be trans¬
lated into increased earnings will depend upon consid¬
erations of national policy, domestic
was a
civilian
for
Needless to say, the reduction in taxes
greatly to bolster up purchasing power which
was reduced by
unemployment and by a shorter work
week in many cases. The high rate of new construction
men
good year for
business
in
the aggregate, it was
down moderately from
the 1953
Although 1954
increases in production
dislocation of labor.
their confidence.
look forward to its year of great¬
domestic demand in 1955. For what segments of the
and
a
It is to the great credit of the American people that
they took the adjustments in stride and refused to lose
The oil industry can
est
by
without
usage
F. BRYAN
CURTIS
President, Toklan Royalty
in other years,
as
and
rates
.
year
important economic factor determining the
most
prospects for banking in 1955,
is
decline moderately because of the expected
expansive monetary policy plus the projected loan
increase.
On the whole, 1955 promises to be another
less
Savings Bank, Chicago, 111.
President, Harris Trust &
The
BROWN
A.
between October,
1953, and March, 1954.
Since
March, unemployment has been reduced by about one
million.
Although much political capital was made of
the increased unemployment, it is difficult to see how
the large drop in production for government could be
thereby benefit from the opportunities available.
material contribution toward
improvements which will mean so much to
make
can
we
lion
Earning assets in the form of invest¬
1955.
ments may
we use.
certain, that we can re¬
employ those who have been made idle owing to curtail¬
ment of funds for the work that we do.
Then, as in the
is
It
income in
Thursday, January 20, 1955
.
employment increased by about two and one-half mil¬
higher interest rates and reduced interest
in 1954 will serve to restrain loan
to
loans made
on
.
.
state
and
The most serious aspect of the recession was
local
that un¬
year. At present there are about 40 million
per¬
between the ages of 5 and 19. This is
an increase
of about 15% since 1950.
By 1960, there will be about
46 million in those
age brackets. As a result we see a
every
sons
Number 5396
Volume 181
increase
continued
where
cereals,
.
The Commercial and Financial Chronicle
.
consumption of
the
in
other
President, Godfrey L. Cabot, Inc.
food
good for the coming year and the prospects for the
Competition will undoubtedly
1954, but that is a part
of our American system and is an element. of basic
strength. Competition is the stimulant which siirs our
creative powers in the use of our resources.
Scientific
research is constantly bringing forth new discoveries,
new products, new processes and new methods, but the
business look very good.
even
more
test is in the market
believe
I
ducing
that
consumers
and
will
businessmen
BUTCHER, III
We
>
but
Alberta
& Sherrerd, Philadelphia, Pa.
gas
Thomas
Columbia.' In
Utilities Corporation, con¬
electric and propane companies mostly
also
Saskatchewan
British
and Western
and
'*'•
but
also
per
customer, so will
for
service increase numeri-
on a
7
'
•
.
•
-
This
is
our
?
land
Utilities' subsidiaries
of
as
they have these
International
proud to be Of service to such
fine people and look forward to
1955
and
many
growing with them in
years.'
\
.
;
;•
its
we
lost out
„
the
basis of
items
our
we
failed to recog¬
domestic economy.
own
'foreign
Without
couldn't have sold
many automobiles,
machines, and the hundreds pf
which have produced trade and jobs and
we
washing
thing internationally—give
same
nations
long
term
credits
which
on
;
.
.
.
We must do the
our
they
can
produce and create jobs and trade and trade and jobs.-r;
If
!
/
tangible
internaitonal trade.
on
jobs and trade.
we
fail
to
that—if
do
insist
we
aspect of the cold
war
and
on
strictly cash
going to lose the trade
basis international trade^-we're
.
in
.it
a
afford to lose it;
we cannot
'
at the
! time cannot last long because trade
cannot exist without the purchasing
-
i'
produced by jobs. - Hamper
trade and jobs disappear.. >
This
theory is just as true in in-.
ternational trade. If the people who
live
are
in
for every man
natural
TVWhen
desire
'
*
'
:
every
>
:
:
woman
make
we.
to -fulfill
somothing^td ? own'
r T\
•/.
-
Communism, simply stated; is just
ownership of private property. :
attack
an
1
v *
-
the
upon
•'
:
.J" To work for the attainment of this goal—"Trade Makes
I Jobs and Jobs Make Trade and the Combination of the
jBHBHHHH*
Creates
Two
-V
-
and
accumulate
you
Unbeatable
Domestic
and
International
Strength and Security''—should then, be the primary aim
^
every
member .of the Congress of the United States.
friendly allied -nations >•■ Homer E.Capehart
without jobs, they cannot buy the goods we should
-
to
have made it possible for-every person to
something, you have defeated Communism because
own
exist
power
things, at home and abroad
^private property.^;!'Y,
^.Jpg
iWithout jobs, our people at home
'can't find work. When that happens,
may
do these
we
possible
the
the conduct of
domestic affairs.
When
1
.
opportunity,
are
is
whatever * trade
infinitely varied resources throughout 255,000
the
;
from
necessity for applying to our foreign
principle of long term credit which has
same
*
in /our -international'
future; Of its constructive government which
progress everywhere on a pay as you go basis;
:
,
aside
absolute
refrigerators,
CAPEIIART
and Jobs Make Trade and the Com-
: is /as ' true
relations as it
•
I; oilahd gas
Y
E.
field,
government which
a
each.
do lose it, it will be because
we
been
.yllt
is
miles.
If
trade the
Examine that statement carefully...
•
square
international
nize the
themselves to the regulation re¬
recent Supreme Court decision should the
HOMER
job without
responsibilities to
it will be because
war,
.
subject
-7
followed
lh Texas. The same is
' -^happening TrTthe prairie provinces.
its
'
prosperous
and of its
material have contin-
to
Vbmatioo of; the Two Creates Utfbeatable
Domestic
and;. International
% Strength and Security.!'
Y
proud of its tremendous opportunities; of
its .fast growing population which is so aware of its
fosters
raw
a
do its best
can
the
effects upon our own economy, trade is without a doubt
the most effective antidote for war. If we lose the cold
If there is one/philosophy encompassing the solemn
duty of a member of the Congress of the United States,
particularly in -these times, it is a genuine recognition
.of the truth of the statement that "Trade Makes Jobs
Well es-
t^blished cattle- and Wheat growing
^v economyVaried industry-
;
In
.
v
.
Alberta isalmost as large 'als Texas,
fna^well be'.following" in Texas'!
{fgas: an(^ °d production
Alberta
as
you
recognizes
a
operate beyond expectations
because
gas. suppliers
have been
Ued
inter¬
the
neither
the
of
and
you
other
of service
Alberta's de-:
^^^^^^H^B^jLOotstep^by^superimposlngimining,
'
to
an
and
;
ex¬
in
be
U. S. Senator.from Indiana
the quantity
in
cally and quantitatively•
Butcher, IH
Cabot
HON.
.
Howard
to
than
will
ever
an
it, for example,
in the number of customers
-
abroad
more
which
the utilities this side of the
as
■Pltlllborder have experienced not only
increase
mands
run-
sales
for
tax individuals or business unnecessarily, you
incentive which produces both jobs and trade.
impose restrictive regulations, you do the same
thing. If you beat the brains out of either management
or
labor, you do the same thing. Neither can assume its
proper place in a sound economy without the other and
rapid
has of late been
promises to
/'Just
y.v
States
continuing jobs and
If
quired by a
gas go into interstate commerce.
lation, stimulated particularly by oil
.discoveries,
d.
reluctant
prairie provinces growth of popu-
those
expect
domestic
If
than
sales
current
stable
assure
kill
this
special benefit to our foreign plants.
In this country older plants using
Our company, International
in
start
inventories
lower
with
somewhat
pand
Utilities Corp.
President, International
We
more
national economy that will
trade and trade and jobs.
agement
will increase
equal ton¬
with
even
earnings.
and
United
HOWARD
industry
H toward higher quality carbon blacks
last
I am optimistic for 1955.
spending for national defense.
So, it seems to me that the primary objective of this
Congress should be to do those things which
will produce, in its proper sphere, government encour¬
and every
trend
modern plants designed
qualities should have sat¬
with
year
intelligently and courageously dur¬
ing this period when the economy will slowly gain in
civilian use what it lost through the curtailment of
trols natural gas,
and
these
isfactory
continue to proceed
Partner, Butcher
tire
sales
nage,
for
place.
both
the
in
dollar
The
completed.
being
are
and
If, on the
make it difficult for foreign business to
sell the goods we produce, or proouce
can't have jobs either.
world and several new plants
in the
capacity
we
goods for sale with American credit capital, these people
my
keen than during
hand,
purchase
opinion, 1955 will not be an easy year in our
field for there is substantial excess carbon black pro¬
In
45
be selling them to bolster our own economy.
D. CABOT
THOMAS
upward trend.
In my opinion, the outlook for industry in general is
be
(301)
ready-to-eat
consumption also snows an
capita
per
.
our
Continued
:;
Y
"
more
nt the
"
.
■
*
•
.
1
46
on page
'
r
i
power
'Top ofthe South"
Another 100,000
\
kilowatts of electric power were added
to the
Vepco power system with the recent completion
of the new addition to the Portsmouth Station at
Portsmouth, Va.
Another
with the
100,000 Kw. unit will be added next Spring
completion of the
Point Station near
A third
opment,
new
addition to the Possum
Quantico, Va.
project—the Roanoke River Hydro Devel¬
near
Roanoke Rapids, N.
construction—is
C.,
Kw. to the system
able power
service
the
under
before the end of 1955.
TOO! All this
POWERED FOR THE FUTURE,
adds up to a
now
expected to add still another 100,000
plentiful supply of economical and depend¬
for present and new industries in the Vepco
area
at
"THE TOP OF THE SOUTH" where
present-day capacity already is two and one-half
was only a few years ago.
times what it
-
Inquiries addressed to our Area Development De¬
partment for plant
site and other information will have
of course, will be held in strictest
prompt attention and,
confidence.
VIRGINIA
AND
ELECTRIC
POWER
COMPANY
Richmond 9# Virginia
...
PORTSMOUTH
STATION at Porhmouth, Virginia
.
.
,
1
-
•
r
46
The Commercial and Financial Chronicle.
(302)
Continued from page
*
1955, for the air
The year of
Such devices
now going into quantity production with
the pros¬
pect that they will revolutionize not only present meth- -
ing power of the people through just such
personal exemption.
The Census Bureau
ods of
_
transportation industry,
daily lives in
of flight. In the
spring, Capital Airlines will introduce to the American
traveling public the Vickers Viscount, the first turbo¬
prop airplane to be flown in domes¬
tic transportation.
Every indication
points to the conclusion that Cap¬
Viscount airplane
significant effect
on
the air transportation industry.
For several years it has been rec¬
turbo-prop
have
will
a
most
ognized that the conventional piston
engine was reaching its maximum
stage of development.
Leaders of
the industry have viewed
the ap¬
proaching jet age as the next
air transport development,
numerous ways.
,
indication that
Outlook Good for Appliances
major appliance industry suffered to some extent
over production. Nevertheless, it was
one which saw almost six out of every
ten families purchase either a major household appliance
or a
television receiver. The air conditioning industry
tric
freezers
ranges
becoming
are
homes.
were
Sales
an
of
I
a
whole, due in
agreement that the turbo¬
powered airplane would repre¬
the means through which air
sent
O.
transportation would enter into the
jet age of flight.
Capital's purchase of 60 four-engine Viscounts, pow¬
ered by Rolls Royce turbo-prop
engines, makes this
prediction a reality. In introducing the speed and com-,
.fort of vibrationless flight to the American public, a new
*
standard of air travel will be established. Other carriers
i
President, Beneficial Loan Corporation
H. Carmichac]
tmes
CASPERSEN
W.
Nineteen fifty-four passed into
second
best
in
/
economic history
as
spent more
1953.
tionless flight at greater speed
The outlook for the
year
The economic
suited
for
atmosphere indicated for 1955
the
introduction
of
the
new
most
JAMES H.
dollar.
placed
before in
Special
a
attention
of air
rables
be
including automobiles and
Conservative
that
consumer
and
services
•
observers
1955
will
In
itself
do
if
they
can
because
1955
more
guided mis¬
a
the right time and place. This critical need is the
great¬
est challenge our scientists have ever faced.
doing in this field
remain undisclosed
secret information.
Only
a
for
few weeks ago we
licly for the first time-that
the
were
must, of
present—it is top
allowed to
have
been
say
pub¬
awarded
a
contract by the Navy covering the
guided missile known
as the "Sidewinder"—one of the
newest air-to-air mis¬
siles.
The
Navy announced that Philco has
been engaged
for several years in
developing and prototyping various
kinds types of guided missiles. Our tremendous
research
and engineering laboratories are
among the few in the
country that combine electronic and mechanical skills,
both of which are required in missile
work.
In civilian fields- also< the electronic
to be one of the
ues
industry contin¬
fastest-growing in the world. In
spite of
a slow start last year,
production of television
receivers exceeded 7,000,000. The
factured and sold
more
than
industry also manu¬
10,000,000 home and auto
radios.- The field of communications is
being advanced
demand
of
all
responsible
to
life
provide better
lower
at
?
cost.
stimulation
interest
of
has
other companies, in increasing busi¬
ness
in
1954—and
the upcurve, I
confidently
believe,
through 1955.
will
continue
With
A
function
durables
will
assert
EMANUEL
CELLER
S. Congressman from New York
acceptance
It Is
a
no
of
claim to the possession
i
income, I believe life insurance may well receive
larger share of the consumer dollar in 1955 than has
case in recent years.
Life insurance purchases
can
and will keep pace with the economy—and I see
a
nothing in the horizon to impede this forward march. *
J.
LUTHER
The
new
year
has opened with business activity again
the uptrend after one of the mildest, though one of
the
best-advertised, recessions
record. The construc¬
and business have met
problems of readjustment carries
the most favorable implications with
tive
manner
on
in which government
respect to the outlook.
a
ex¬
upon a
by
private business to take
the slack. Business has responded
encourage
has
of
wholesome economic readjustment
accomplished with
a
minimum of difficulty,
a
normal peacetime economy
is beneficial from every
point of view. It means that a
larger share of the national product is being devoted
to the people's individual needs and desires, and less to
the
bal¬
uses
been
budget, the President will face
less resistance from the
a
military economy toward
•
balanced
a
been
J. Luther Cleveland
market.
the
and that business is less dependent upon political props
than it has been for many years. The transition from a
In learning to put the wel¬
of the nation ahead of
resisted
in with large-
spending to fill the gap
declining defense ex¬
penditures and inventory liquida¬
tion. Instead, it has endeavored to
created
.needs
placed his empha¬
previously, but
wisely
rush
ing with orderly revision of its in¬
position, by continuing to
invest large sums in new and im¬
proved productive facilities, and by
retailoring its output to the changing
to,surrender/
one-year
has
ventory
note of tremendous signifi¬
of
war.
It
means
that the base of demand has
broadened, diversified and stabilized. It
means
that
the inflationary threat which always accompanies heavy
majority in
Emanuel
Celler
Congress. The housing program, for
example, will be dealt with more realistically in keep¬
ing with the needs of the country; the needs of education
will not be
CLEVELAND
Chairman of the Board, Guaranty Trust Co. of New York
by refusing to "panic," by proceed¬
sis not upon a balance budget as he
anced
and
Despite the competition of other goods and services
channels for the investment of dispos¬
lic.
up
that the President, as seems to
be apparent now,
fare ;
education
able
The result is that
economy.
the
scale deficit
tension.
cance
of
of
and of the many
demands that it
he did in the 83rd Congress with
his
knowledge
life insurance
through
through the
impact of advertising, the industry
cannot fail to extend its services to the American pub¬
better
F. Clark
Paul
on
for
better
the
Democratic Congress,
did
we
and
three-year extension of reciprocal
as
in the. current fiscal
years, and the expenditures
exceed $1,000,000,000 next year. Our lives and the
very security of the ntion may depend on having the
right kinds of guided missiles available in quantity at
course,
it
been the
trade agreements will pass this time.
It will not be necessary for him, with
may
is
what
not
resulted for the John Hancock, as for
out¬
The President' recommendation for
siles
Philco
the
of a crystal
ball, I do believe I can make limited predictions on
legislative activity in the 84th Congress.
At any rate,
I am willing to assume that risk.
a
Research Proceeding Apace
what
workers
consumer
While I make
The American people have cash and other
liquid
totaling $210 billion. That is why distribution,
including salesmanship and merchandising, are of such
great importance for the coming year.
of
above
vigorously than in 1953 and will require more
U.
James H. Carmine
be persuaded to
on
concern
This
Government
so.
Much
dollars
million
businessmen should be
the direction of change of practically all
of
HON.
is spending $600,000,000
is
expanded. This
only because
competition, but also because 0;f
service
'■
Once again Beneficial will increase the number of
subsidiary loan offices and the investment in them.
assets
This country
'
of credit.
use
to spend to satisfy their
money
durables:
standing small loan receivables at the end of 1953. Bene¬
or that
product, there can
argument that they will have
desires
consumer
on
ficial obtained its share of the increase.
want this
the
hundred
several
were
a
While there may be divided views
to whether the buying public will
no
insurance
about
come
insurance officers
economic indicators will be up.
peak and exceed 1954 by $9,000,000,000. The biggest increase, they
estimate, will be for durable goods.
be
life
of
do for: him has
the
tomary pattern. Aside from a seasonal dip in the first
quarter, outstanding receivables of personal instalment
increased. Particularly, there was the usual sea¬
sonal increase in the last quarter, and the final figures
better
new
as
of
a
as
Psychology
estimate*
reach
buyer
begins with every prospect that consumers will
their dynamic reach for higher standards of
consumption through buying goods and services, many
of them on convenient time-payment plans.
expenditures for goods
in
present in
competition
apparent to prospects and policyholdj
ers.
The interest of the average
has
loans
v
-
more
\
can
1955
ap¬
'
'
has become
-
continue
du¬
pliances. v
other industi ies.
mild recession from the peak reached in the
middle of 1953 and despite the pockets of localized un¬
employment, small loan companies folloWed their cus¬
up
designs and styling-tor
create, demand.
This trend will * be"
consumer
as it has always been
In the past year, however,
business, just
ance
consumer
j '
the life insur¬
"
on new
evident in the field of
Competition has always characterized
as automobiles and elec¬
appliances, were coming off
than usual
i
to capture the consumer's
will
where fewer
CLARK
'
lenders, i like the 860 loan offices of Beneficial
Loan Corporation, finance emergencies and opportuni¬
ties in family life that occur with some degree of actu¬
arial regularity that is independent of the state of busi¬
ness. Experience last year confirms this well known fact.
Despite the fact that the year 1954, as a whole, ended
CARMINE
race
PAUL F.
President, John Hancock Mutual Life Insurance Co.
and
Cash
With proper emphasis on creative selling and mer¬
chandising, business promises to be good all during 1955.
American industry expects to turn out more new prod¬
ever
than in
'
President, Philco Corporation
ucts than
closer to the thinking of the Democratic party,
particularly in the area of foreign affairs and trade.
assembly
lines.
Consumers spent
freely but not in the customary way.
They spent more than usual on serv¬
ices, recreation, vacations, housing,
and soft goods, and they spent less
O. W. Casper sen
appears
age
talk
centers
trical
transportation. A healthy, highly competitive transport
industry provides a good backdrop for Capital presen¬
tation to the American traveling public of a new stand¬
ard of speed, safety and comfort with its Viscount air¬
planes.
.
It is admitted at this time that Mr. Eisenhower's program
goods, such
#
well
both
tion
course,
Yet for most of the year there
was
by Capital is so com¬
pletely dominated by this new development that it is
impossible to view the future except in relation to it.
"The concensus of opinion of all experts is one of a sound
and flourishing national economy in 1955 — it should
follow that with business generally at a high level, air
transportation as an industry will enjoy its share of that
activity. This factor, coupled with the continuing growth
.•* of our expanding industry, should point to further gains
in gross revenues. However, as in any regulated indus¬
try with a fixed price for its product, consideration must
be given to the escalating cost level, as it continues to
reflect ever higher wages.
coming
1954
is, of
moves
feeling of some
readjustment or recession. This was
due to pockets of unemployment that
were concentrated in a few produc¬
will be opened.
dollars in
;
safest to say that the legislative activity
will be of especial interest in view of the fact that there
is a Democratic Congress and a Republican President.
cut, so real income went up.
Furthermore, consumers actually
portation will have been made, and a new era of vibra¬
f
It
were
Lave already announced their interest ip the turbo-prop,
so that in 1955 the first step into the jet age of air trans¬
in favor
will undoubtedly receive keenest scrutiny.
program
the
the history
of the United States.
More
people were employed and the Gross National
Product was higher than in any other year except 1953.
Prices were stable and personal taxes
year
vote
Congress wil concern itself with the principles of
public vs. private power, the issue dramatized by the
Dixon-Yates contract, and the alarming increase in the
rate of business mergers. The Administration's security
general
prop
Congress will
admitting Hawaii to the Union without the same con¬
sideration given to Alaska.
The political fact of life is
that the admission of Hawaii will spell out, in all like¬
lihood, the addition of two Republican Senators.
This
is too obvious a maneuver for the Congress to accept.
accepted appliance in
refrigerators and elec¬
good for the year as
this
that
doubtful
am
of
part, to a very high level of new home construction—a
trend that will continue in 1955.
with
many
The health of our* economy cannot be judged by un¬
employment figures by themselves. We must take into
account not only how many are unemployed, but the
employment figure itself, to enable us to judge both
the growth and the elasticity of our economic sufficiency.
experienced a substantial growth during the year al¬
though the volume of sales was somewhat lower than
expected here in the East, because of unseasonably cool
weather.
Sales of home freezers increased to a point
American
the
62.1
is not expanding sufficiently
thousands who enter the
economy
for
reports
leaving.
good year and
where
our
room
increased
an
labor market each year at a much faster rate than those
during 1954 from
a
make
to
The
most
phase
of
*
million employed as of September 1954.
That figure is
less than in the two preceding Septembers.
This is an
manufacturing and communications, but also our
the beginning of a new age
ital's
now appearing as soft spots in various areas of the country- persist, it will be necessary to increase the purchas¬
and better transistors
new
as
are
President, Capital Airlines
will mark
developments from our industrial research
new
laboratories.
CARMICHAEL
H.
J.
daily by
45
-Thursday, January 20, 1955
summarily dismissed; and
an
increase in the
minimum wage will doubtless be part of the lebislative
agenda.
While L foresee no further cut in corporate
taxes, I believe the issue will be joined on the matter
of incomes received from dividends and also oh the ques¬
tion of increasing the amount of personal exemptions.
Much, of course, will depend upon the state of health
of the economy.
Should the pockets of unemployment
governmental
that
means
control
The
over
spending has
the
trend
been diminished. And it
expanding bureaucratia
toward
the lives of the people has been reversed.
early prospects
seem to
point toward gradual and
solid recovery, father than toward an immediate return
to boom conditions. Consumer demand is well sustained,
although there is no longer a large backlog of deferred
buying. Construction seems likely to rise to new peaks,
but business investment in plant and equipment con¬
tinues to decline; gradually; Inventory liquidation has
,
Continued
on
page
48
Number 5396
Volume 181
.
.
The Commercial and Financial Chronicle
.
Susie.
If
adequately
Colleges,
Schools
tions will have to be pressed
service.
teacher
And Taxes
Now,
why
problem is
come
under¬
hand
very
of
about
or
higher
the
$7,100;
other
but
figures
top
we
can
on
$11,200; lawyers,
dentists,
How
able.
classroom
physcians,
was
much
teachers,
I
attain¬
hope
hold
To
shall
we
forecast
only
to
hold
quate
with
as
for 1953-54. This is less
than many business and engineer¬
ing college graduates got as a
starting salary on their first jobs
con¬
large increases in college
enrollment, and forecasts our
democratic society, with full
a
a
em¬
year or so ago.
fer
means
for
moderate
that
•
it
represented
salary rise of 4.8%
vious
an
over
4
must
Should
If
want
we
Raised
Not Be
capable teachers,
shall have to pay wages
tive
pre¬
ties.
the
tremendous
This
With Ungerleider Co.
'
provide
methods
of
far
Ungerleider &
more
Co.,
What
competi¬
outlay
of
this
in
use
the
industry could survive
New
York
announce
of present facili¬
competitive
era
with
that
Stock
with Bache
&
Co.
ated with the firm.
day?
per
formerly
t
#v
to
hope you will be able
your children to college
you
send
sometime
between
1964?
and
now
If you expect them to get a sound
0
3
education, and
to
get
money's
you
your
worth, much
must be done.
THE DETROIT BANK
Both teachers'
salaries and
the i
r
f f i-
e
Statement
-
ciency
is
(which
t ivel
para
Condition
com-
now
y
of
December 31. 1954
low)
must, be
increased.
•
•
Fifty
a
t 4% of
o u
the
Roger W. Bab son
youth
college
able
were
to
great events
boosted
to
go
President
RESOURCES
The Detroit Edison Co.
college. Two
enrollments
scene
sharply—the
Cash
and
Due from Banks
.
.
.
.
$143,683,408
•
.
.
United States Government Obligations
.
15%
of
youth of
college age attended such schools.
Between
1945-49
a\ little better
than 25% were enrolled. Then, the
number
our
shrank
during 1950-52.
Chiefly responsible for this drop
the
was
in
.
in
fewer
number
births-
of
the 1930-35 depression.
>
'
and
1953 rose 4.8% over 1952, so
again about 25'% of our youth
of eligible age were in, college.
1954
fall
enrollment? probably
registered a 6%-8% increase.
that
Can
College
Forecasts
Be
Corporate and Other Securities
Loans and Discounts
.
.
.
.
.
.
.
.
.
.
.
.
Joseph M. Dodge
$104,869,455
.
.
Dean Chemicals, Inc.
6,085,197'
........
...
President-Treasurer
72,662,133
-
.
.
,
.
Chairman of the Board
.'.
Real Estate Loans
•
Federal Reserve Bank Stock
.
.
...
209,731,023
104,861,568
.
.
.
.
;
.
'* 847,500
Charles H. Hewitt
4,701*071
Equipment
Bank Properties and
But, 1952 saw a 1.5% increase
college enrollments over 1951;
*
State and Municipal Securities
Charles A. Dean, Jr.
338,741,884
depression and the G.I. Bill. Pre¬
war, about
•
Walker L. Cisler
of
age
national
on our
DIRECTORS
years
goonly
b
a
Executive Vice-President
3,189,444
Accrued Interest and Prepaid Expense
.
.
.
.
Other Assets
.
17,032
.
Customers Liability on Letters of Credit
118,472
Ralph Hubbart
Chairman of the Board
Allied Products
Total
.
.
.
.
.
.
♦
.
.
.
.
.
Corp.,
$779,777,164
JamesMcMillan
*
■
Vice President and
Trusted?
Treasurer
If
you project to 1970 the num¬
ber of children already born, you
-
v
will
have
youth of
,
16%
a
increase
college
by
age
in
Boyer-Campbell Co.
LIABILITIES
the
1960,
a
H. Gray MuZzy
Demand Deposits:
Chairman of the Board
46%; increase by 1965, and a 70%
by
increase,
1970.
if
And
creasing percentage of our youth
of college age go on to college,
U. S. Government
$356,912,188
........
14,528,867
Other Public Funds
enrollments could double by 1970.
i
.
Individuals, Corporations and Others
in¬
an
.
21,802,275
-
Federal-Mogul Corp.
$393,243,330
Raymond T. Perring
President
;
The above is based
sumption
make
to
tunities
that
always
claim
that
young
our
for
have.
by
1970
double
Educators
third
good
a
people of college age
student
haps -require
than
more
bodies, and
double
the
of teaehers and much
room
youthr
our
enroll. This would
may
Savings Deposits
Total Deposits
educational oppor¬
more
of
as¬
.
.
.
•
342,188,033
•
■
Accrued Expenses and
...
.
•
•
•
•
•
$735,431,363
Chairman of the Board
Detroit Harvester Co.
4,928,299
Taxes
17,032
Credit
Liability on Letters of
Harry L. Pierson
1,741,669
.
.
Cleveland Thurber
Capital Stock
Surplus
.*
.
(825,000 Shares)
.
7
.
...
$
8,250,000
Senior Partner
Miller, Canfield, Paddock
20,000,000
,
& Stone
per¬
number
more
...
Unearned Interest
class¬
Undivided Profits.
-
.
.
.
.
...
.
General Reserves
space.-Personally, I believe
this is like
"
.
.
shall continue
we
available
we
as
•
the
on
.
.
.
.
.
.
.
.
.
.
7,497,279
.
.
Total.
.
1,911,522
.
.
.
.
•
$ 37,658,801
Herbert B. Trix
$779,777,164
Presiden t
W. M. Chace Co.
forecasting 500 for the
Industrial Stock Average. 1 ques¬
tion such figures.
The
be
limited
merrtary
may
*
to
colleges.
about
each
the
schools
140,000
law, including
are,
the
alone,
*
college.
; .But,
teach*
.
*
that
only
of
number
for
will
the
be
-
-
MAIN
OFFICE
•
schools
'
-
Corporation
have' to
Johnny,
AT
STATE
•
DETROIT,
MICHIGAN
MtMEIR
of
FEDERAL
Throughout the City
DEPOSIT
INSURANCE CORPORATION'
'
from
-M
will
GRISWOLD
41. Offices
teachers
public
.
little
The Murray
of America
deposits of the State of Michigan amounting to $4,957,568.
about
graduated
someone
your
Director
pledged to secure public and other deposits where required by
•
half
needed
C. David Widman
fore¬
Yet, it is estimated
experts
of $31,638,000
Securities in the foregoing statement with a par value
new
for the
year
seeable future.
not
Our ele.-
andj secondary
need
teachers
by
United States Government
*
teacher-shortage will
and
ORE
THAN-
ONE
Broad¬
Exchange,
Arthur
Schwartz,
its
factories being used only six hours
tax rates.
Do
52
learning by way, New York City, members of
youth, under moderate
our
Street.
principal of
a
Jerome
we
enough to encourage them to
make
year.
Jefferson
4-
efficient
doubling the
was
average
the
when leaders
in industry of¬
rate.
South
the firm.
youth,
our
tax
609
William P. Hilts is
educational
our
'
Continental
—
securities business from offices
at
ceilings unlimited?
Taxes
good year for the teachers too,
for
ployment can progress only as
we
provide adequate schooling
And 1953-54
$5,000-$8,500
pay
their counterparts
a
can
provide ade¬
we
schooling
a
■
which
democratic
our
society, with full employment,
prosper
ROANOKE, Va.
up
higher taxes. Securities Company is conducting
means
that
to
47
Continental Sees. Co.
able
our
have
with
good men in top educational jobs
averaged about
$3,600
efficiency,
comparatively low,
tinued
for
salaries
received $4,500
i
be increased. Foresees
must
a
in
Compared
time and expense needed for their
little higher. The median in¬
there
are
1,028,899
College teachers' salaries go salaries. This
$7,750;
teachers'
ers' salaries and their
now
more.
the
received less than $2,500, education.
only 14%
answer,
Public-school
serious, Mr. Babson holds teach¬
both
into
paid.
Salaries
the college
and
of
14.1%
teachers
per¬
qualifica¬
is
shortage? The
is that teachers
part,
By ROGER W. BABSON
Stating
available,
substandard
with
sons
not
Still,
trained
teachers
are
(303)
HUNDRED
FIVE
YEARS
OF
SERVICE
associated
is now associ¬
.
•.
The Commercial and Financial Chronicle
Thursday, January 20, 1955
...
(304)
48
if not entirely ceased, but no
developed. The decline in Federal
almost
has
rush to replenish
spending has been
increasing pressure on State and local
provide new roads, schools and other
public services. In short, the recovery, like the preceding
decline, seems to be proceeding with moderation and
partly offset by
governments to
balance.
the
years encourages
experience of the last two
The
hope that both government and business have grasped
the importance of avoiding excesses, either on the upwaid or downward side. If this vital lesson has been
is good reason to view the
learned, there
thoroughly
optimism.
economic future with
brackets with
owning cars are in above-average income
earnings over $5,000 a year.
46
Continued jrom page
three
Michigan's
of
sity
and confidence
attitude toward spending for
improved
greatly
a
showed a
increase in consumer optimism
definite
and
Research Center
Survey
outlook
for sales of automobiles and large household goods for
the next six or nine months, dependent of course both
on consumer resources and consumer sentiment, is bet¬
1953."
at the end of
than
ter
The survey states that "The
durables.
consumer
Nearly three-fourths of America's families now
have liquid savings in the form of bank accounts and
(5)
dam
Hollywood—and by Hollywood I, of course, use only
identifying phrase for the motion picture industryis these days a place of excitement, enthusiasm, and
promise.
high
•
our
tations
Expec¬
profitable years.
of its most
great, not only for top¬
are
calculated to
interested than,
ever before, but also expectations of
growth, development and profits for
entertainment
flight
keep audiences more
make and distribute
those of us who
when
required
It has
of imag¬
a measure
tenacity and determination
to
overcome
the economic threats
which have disturbed our industry
ination,
past.
Ours is a flexible in¬
dustry.
We do not hesitate to scrap
successful formulas of the past when
Colin
needs and
they no longer serve the
of today.
demands
Today
"On
Eternity"; "The Caine Mutiny";
"From Here to
as
pictures.
quality
on
produced, in the last two years, such suc¬
Columbia has
cesses
concentrating
are
we
Waterfront"; and "The Long Gray Line." The
studios have been keeping pace, making pictures
the
other
and the very best talent available.
this is the formula movie-goers the world over
is indicated in the healthy state of our company
want,
and
We have found that there is no
pictures, the kind of pictures the
industry today.
our
ceiling
quality
for
indicated they will support.
cash customers have clearly
With
and
application of this
the
thinking, with new
new
technological
popular
advances, with talent and
working harmoniously, with
administrative
personnel
our nation's economy and prosperity continually advanc¬
ing, the motion picture industry can well look ahead
to
whole
a
of progress and earning power.
era
new
L.
sights
By Dec.
tion
President, Chrysler Corporation
In
model introductions created
new
and
confidence
Public
put
basis
in
to the
plants
on
effort
an
The
mand.
throughout the
response
many
to
effects
a
of activity
surge
American
economy.
automotive products
new
has
overtime
an
this
of
the
businesses
and
In
with
total
materials,
In
duction
million.
buses
and
Present indications
over
the
exceeding
1955
a
lower
and
of
make
motor
main
1955
models
one
(1)
Recent
60%
Colbert
l.
l.
vehicles produced in
of the industry's big¬
them
in
over
a
1955
a
(2)
good
for
million
for
new
Conditions
creased
used
new
used
buy
new
shown
cars
an
excep¬
all models has been
are
cars
to
more
replace
four years.
built
before
been
—
favorable
which
the
cars
war
are
this
in
for
active
an
should
turn
market
lead
to
in¬
One indication of the great need
continued
over
today
use
of
between
13 years old—cars which
were
years
(3)
only
many
car
War
II.
Most
of
these
would
have
if a supply of good used cars had been
The older cars, early postwar as well as
pre¬
being scrapped in ever-increasing numbers, and
will
old
Of
one
result
or
car.
increased
an
100
And
as
as
greatly increased.
the
about
to
have
been
enthusiastic
an
completely justified,
excellent, year.
response
and
we
are
.
S.
COLEMAN
President, Birmingham Trust. National Bank,
ord levels
reached
the year-end.
Bank earnings and deposits
highs. Retail merchants
on
new
their
best, volume
of
a
severe
did lumber
the.
Severe
in
orders -the
demand
for
cars
cars,
88
five
families
14
this
million
country
Surprisingly enough,
that
gain
strength,
Their
the remarkable
America is being
growing demand
not
prophesy for the long term
pretend to
year seems to
encouraging.
very
S.
SLOAN
COLT
President, Bankers Trust Company, New York City
Nineteen
fifty-four
commercial banking
months
proved to be a better year for
than was generally anticipated 12
Bank loans to business declined with the
ago.
in economic activity, but for the system as a
sag
the decline was more than offset by
had
many
in
families
have
—
of
affected
long
the
rapid
and
by increases in loans on securi¬
and other loans.
Bank lending
ties
rise
rates tended
downward, but the de¬
generally
moderate.
Easier credit policies, which included,
lower reserve requirements, enabled
the
banks
to
add
substantially to
Iheir Government security holdings.
were
creases
Net
above
their
the
with
1953
and
dividend
banks
many
rates.
tone in
better
Government
for
generally
earnings
operating
were
raised
Also,
the market
obligations,
com¬
banks
registered profits on
sales of securities, in contrast to the
S. Sloan Colt
losses realized in 1953, so that addi¬
tions to capital funds in 1954 were significantly greater
mercial
than in the
preceding year.
;
banking outlook continues favorable. The
prospect of some improvement in business activity sug¬
gests larger demands for bank loans in the aggregate
than in the past year. The liquidation of business inven¬
tories seems to have run its course, and this should
eliminate one of the important factors that reduced the
volume of business loans in 1954.
The strength in the
building field should provide continuing opportunities;
for construction and real estate mortgage lending, while
For 1955, the
credit, which showed little net change in 1954
to increase in 1955.
Economic pressures
toward lower bank lending rates have subsided and the
rate outlook appears more favorable to lenders in the.
consumer
is
expected
bank
With
the
With
1954.
were
alleviated
setback
According
Division
reflect
to
of
a
and
appears
reports
United
Furthermore,
definite
to
reduce
rise
manufacturers and fabricators
John
S.
in
more
much
as
favorable,
to stress the need
for greater
Coleman
Coal
and
Corporation, their
demand
for
steel,
with
again in the market.
Sig¬
long
as
reserve
requirements
securities,
a
on
investments, especially
which
boom
and
has
the
has helped
Experience thus demonstrates the contri¬
such
a
credit
policy
support of the
business
make
can
a
narrow
general
public,
1895 —have
policy will undoubtedly continue its contribution
no
of the families not
It
1954
is
reported' by
it
invested
present trends continue.
Alabama
Power
Company that
in
$34,000,000 for additions and improve¬
stable
the
Congress
economic
and
the
toward
range.
and financial com¬
munity,
is expected if
short-
effectively cushioned
keeping economic fluctuations within
Given
on
somewhat above last year.
may average
business
decline.
bution
make re¬
to
or
Flexible credit policy in the past two years
the
conditions
business
as
in
1955
as
the
readily available to the banking system as in
as
.restrain
Tennessee
Steel
likely to increase
outlook
improve, the Federal Reserve is less likely
Rates earned
1954.
term
no
the
States
to
serves
likely.
from
loan
expected
be
may
again
in
re¬
administered
to
those
plus the cooperation
permanent
holdings of Government securities,
the other hand, are not
duration
farmers
need,
conditions
as
whole
„
in real estate loans,
the
nificant improvement in the production and sale of steel
own
American
a
is continuing to
but the outlook for the coming
future,
en¬
for
products promises increasing export sales.
for American
would
more
been
and
Latin
in
progress
has
it
Europe
maintained.
ments.
drought
wisely
books
time.
John S. Coleman
I
The
liquidity in order to meet customers' borrowing require¬
of many interested parties, the worst
Iron
than
long
banks
outlook
1955 is mucli
in
sections of the state.
in
products.
;
couraging
in
favorable.
most
new
sums
Abroad, the situation is
continue
lief
moving upwards.
that business ac¬
in
tivity.
on
also
as
inventory situation and
for these businesses
many
eco¬
applied to research
in the last 10 years are beginning
to pay
off, and the new products
coming onto the market will be a
continuing stimulus to business ac¬
/
textiles suf¬
year
contraction
products.. With improve¬
increase
more
the
my
tremendous
Commercial
During the past
fered
„
that
will-continue.
months ahead.
business.
younger.
every
families
at all.
in
much
as
Although 1954 was a year of continuing adjustment
from wartime-economy to one of peacte, business in the
Birmingham district, with some exceptions, was at rec¬
scrapped
available.
World
by
our
adversely
cars.
sales.
is
8 and 9 million
upper
consumers
are
cars
car
or
happy
very
ments in the
that
tend
few
a
are
In 1950, 1951, and
bought new cars — and
large percentage of these people should be in
13
the market
for
two, three
every
1952
have
surveys
who
the
lowered
of
the
portion.
give
Birmingham, Ala.
expecting 1955 to be
market
those
of
been
time
inches; the sides have been sloped inward from the
roof; and the glass area of the windshield
-
the
on
have
cars
in
are
appearance
same
airiness
JOHN
buying public. Following
more
reasons for believing that
1955 will be
tionally good year for the industry.
than
the
of
the
of
years
1955 models
our
present,
the
three
than
more
All of
certain
seems
of the release of
me
styling of Chrysler Corpo¬
at
and
and
looking forward to
bigger year
industry than 1954 is the stimulus of
for the automobile
new
lightness
experienced
for
reason
They
power
that
are
look"
product of
longer.
road-hugging
shown
gest years.
A
the
Fall
been
a high level in 1955..
mind the most important
/ maintaining business /ac¬
tivity at a high level will be effects
as a
1955 models in all parts of the country. The con¬
fidence we have had all along in our new cars is now
production
million
6.5
would
and
1954
mean
"forward
is
cars
last
have
To
greater number of changes than in any
a
production
in
1955
will be even higher than in
1954,
with production of trucks and buses
at
least equal
to the 1954 output.
would
changeover period when the industry
agreement
began
tivity will -be at
higher
study and experimentation.
passenger-car
This
45,000
a
new.
ration
We
4
It
:
previous year,.. Chrysler Corporation led all other com¬
panies in the number and diversity of its innovations.
Sweeping changes in all five of its passenger-car lines
were featured by:(1) completely re-styled bodies with
a
new
type
"wrap-around"
swept-back
windshield;
(2) three new V-8 engines; (3) new real springs and
new front-wheel suspension} (4)
a wider range of body
colors and interior fabrics; (5) a gear selector lever on
the instrument panel, and
(6) a variety of new me¬
chanical and structural features
including a suspended
and enlarged brake pedal, improvements in body brac¬
ing and, welding, rear deck lids counterbalanced by
spring-tension- torsion bars, and many others.
to
trucks
of
made
general
an
nearly
COLEMAN
indicators
over-time basis. By mid-December,
Corporation employment had reached
on
model
a
whole
on
<///
important
be
which
we
than the average of the
first 11 months of the year.
During the week ending
Dec.
11, 33,200 passenger cars were produced by all
Chrysler Corporation divisions. Plymouth Division alone
anticipated an output of 79,000 cars in the month of
December, and on the basis of current demand expects
to turn out 725,000 of the 1955 model.
parts
Industry-wide production of nassenger cars for 1954 is expected to
total at least 5.5 million, and pro-
All
to
seems
recovery
month after public introduc¬
had received 448,000 dealer
Plymouth orders totaled 248,-
a
cars.
belt line to the
services.
and
1955
Chrysler
160,000,
of
parts
nomic
day.
a
working
are
2.6
automobile
There
<
attempt to fill these orders, all of our divisions
an
Some
increased
in- all
that supply
country
manufacturers
9,500
over
effect
supply the de¬
activity have been felt in the indus¬
tries
13, less than
new models,
our
S.
•factor
,
months of 1954, the automobile indus¬
JOHN
President, Burroughs Corporation
000; Dodge, 100,000; DeSoto, 40,000, and Chrysler and
Imperial, 60,000. During the second week in December
dealer orders for all our cars combined were averaging
The
the closing
try's
of
Also
large
a
2,052 to 5,300 and that the volume of manufactured
products has increased 417% in that period.
than I anticipated.
sooner
—
COLBERT
L.
we
plants
power
decade.
Industrial development is continuing in all sections of
It is reported that in the last 15 years the
number
of
industrial
establishments
increased
from
On the basis of the initial response of the pub¬
lic to our new models I now think we will raise our
with daring, courage
That
market, and that
would raise our sights still
passenger car
next
Alabama.
higher.
in years
Harry
of the
hit that target
we
in¬
were
I said that our immediate aim
public,
20%
sell
to
was
the
to
and
the
permit to build
a
progress has been made in the plans of the
Corps of Engineers, United States Army, for the devel¬
opment of the Warrior-Tombigbee Waterways which ex¬
tend from Mobile to above
Birminghamport. This will
not only afford greatly
improved navigation facilities
but will also add
substantially to the water supply for
industrial, irrigation and recreational purposes.
by families
1955 models
Chrysler Corporation's
Before
troduced
dams
within
the Warrior River.
on
savings at the end of the war. The average now
is $770, or $20 higher than it was then.
orders for the
movies.
amount held
the
than
River
application for
an
Much
savings have an even higher average
savings
building of five
Coosa
with
„
„
good reason for this. For
industry has just completed one
There is
of
amount
for
the
the
pending is
—
those families with
the
$106,000,000 is scheduled in the next
similar expenditures.
Plans are in
between this company and the Federal Govern¬
for
ment
along
This is a higher proportion than in
1953, and very nearly as high as the highest proportion
on
record
at the end of World War II.
Moreover,
Corporation
Pictures
that
years
process
confident, and in the mood to buy.
attitudes by the Univer¬
People are
(4)
The recent survey of consumer
government bonds.
HARRY COHN
Columbia
President,
and
ments
credit
toward
growth.
Continued
on
page
50
Number 5396
Volume 181/
H. V.
r..
The Commercial and Financial Chronicle
Security Dealers
Two With John G. Kinnard
'With State & Bond Mtge.
Craig-Hallum Adds
(Special to The Financial Chronicle)
(Special to The Financial Chronicle)
(Special to Thb Financial Chronicle)
Elect New Officers
-
the
At
MINNEAPOLIS, Minn.
annual
meeting of the
New York Security Dealers Asso¬
ciation held
1955
Tuesday, Jan. 11,
G. Statter of Hoit,
(305)
B.
Frevel
and
Harlan
—
Lidke
L.
NEW
John
associated
now
Eugene
with John
G.
are
Kinnard &
Co., 133 South Seventh
Street.
Eugene G. Statter
Melvin D.
and
now
on
—
Richard
Hollingsworth,
Dougal
are
Minn.
ULM,
Fred
T.
E.
Joins Reid, Higbie Co.
(Special to The Financial Chronicle)
MINNEAPOLIS, Minn. —Jeanette
Mc-
A.
Hardin
to the staff of
Weathers
with the State Bond and
Rand
Mortgage Company, 28 Montgom¬
ery
Tower.
formerly
Co.
Street.
and
has
been
Miss
Hardin
with Harris,
C.
S.
was
Upham
&
Burleson
with
Mich.
Reid,
Donald
—
become
has
Higbie
Co.,
&
Exchange.
speck
ofmatter..
^
E. Kuehner
Hanns
Samuel Weinberg
.
.
developed and perfected by the Electronics Corporation
.
America, is
one
photoconductive cell,
Herbert Singer
Company
was
elected
President for the year 1955.
Sc
Rose
elected
officers
Other
Stryker
Kuehner of
were
With it, ECA
ECA has
Treasurer, Samuel Weinberg of
S.
Weinberg &
Co.; Secretary,
for safeguarding
of Singer, Bean &
are
Herbert
Mackie,
added to the Board of
and
Corporation
extreme
three
following
elected
to
act
as
members
Trustees
development of nylon in the chemical
so too
nylon fostered
them,
man
a
a
dynamic
fast-growing family of synthetic
new
class of electronic controls.
is finding the brain and nervous system for the
split-second sensing, thinking and deciding machines that
the nub of the second industrial revolution that is
The ECA
organization is proud to be
among
leaders in this industrial advance. Its staff of
speck of matter. This means
tists includes
miniaturization—negligible weight—vast strength—in¬
finitesimal power
of the cell that "sees," and
significance for the world of
ECA in its photoconductors and semi-conductors
In
electronics in which electrons do
a
explosion hazards exist.
as
brought into existence
for simplification of business methods, and
new
the
was
hitherto
fibres,
of human lives and creative energy.
symbolic of the
are
as
full of
as
a
special design of ECA explosion
industry. Just
multiplicity of products for automation of
their work within the confines of
Governors.
were
electronics
country's defenses. With it, too,
companion elements to the transistor. Like the transistor,
they
Singer of Singer, Bean &
The
thinks and controls is
in military electronics.
before they start—in
startling development in
ECA's perfection and development
Actually, ECA's photoconductive cells, or semi-conductors,
Maurice Hart of New York Han-
Inc., were
a
industrial processes,
Mackie, Inc.
seatic
provided
our
a
control systems for industries where
promise to change
has brought into existence a number of the mira¬
strengthen
second. Such
a
uncontrolled field has led to the
of life. But this cell not only "sees." It also can think and
cles which greatly
Sc Brown; Hanns E.
Joyce, Kuehner & Co.;
Herbert Singer
way
millionths of
electronic "eye," and belongs to that
control countless functions in industry and
Smith
Vice-President: Elbridge H.
of
or
class of solids called semi-conductors which
our
hit by enemy gunfire and snuffs them out
of
of the great electronic miracles of our time. It is a
a
now
are
upon us.
the technical
physicists and scien¬
number of the world's foremost experts in the
fields of solid-state
requirement—indefinite life.
physics, photoconductivity, infrared radiation
"
the
for
for
a
Gratuity
Fund
*
to
serve
period of two years: John J.
Jr., of John J. OTCane,
Jr., & Co.; Fred J. Rabe of F. J.
Rabe & Co., and Stanley L. Rog-
And
are
CFKane,
as
ECA
the transistor is revolutionizing electronic
design,
phenomena, and guidance and computer techniques. In fact,
so too
today ECA has the largest staff devoted to fundamental research
products revolutionizing the electronic field known as
and
photo-electrics wherein electronic seeing is involved. These prod¬
-
ucts serve all areas
*
of industry. They range
development of infrared semi-conductors in the United States.
The frontiers of science
from speed-of-light
are
ever-widening. In this generation it
genburg of Roggenburg & Co.
The
following
four members
were elected to act as the Nom¬
detectors for atomic energy
packaged electronic controls for performing industrial operations
burdens of mankind—both
Committee for the year
1955: George A. Searight; Leslie
B. d'Avigdor' of
d'Avigdor Co.;
Irving L. Feltman of Mitchell Sc
Company and James V. Lang of
J. B. Lang & Co.
all the way
Corporation of America is dedicated—in its laboratories, in its
inating
The Board of Governors of
Association
new
too,
aids which extend the human
Meanwhile, ECA's scientists, research staff and engineers are
fields. One, recently perfected,
-
liberation of the human spirit.
extends the frontiers of electronic
control to the fastest and most devastating
ECA's faith in the
of all flames—the
based
bat aircraft. This device detects incipient
explosions in fuel tanks
and in the
Co.,
Inc.;
Hanns. E.
Kuehner
Morris
of
Herbert
Mackie,
of
David
&
all
on an
over
-
Sc
Co.;
the world—to accept new
CORPORATION
ELECTRONICS
Inc.; Elbridge H.
Smith
77
Broadway
•
ideas,
new
of
AMERICA
Cambridge 42, Massachusetts
Stryker & Brown; Eugene G.
Hojt, Rose & Company;
Oliver J. Troster of Troster, Sing¬
&
Co.; and Samuel Weinberg
of S. Weinberg Sc
Co.
»
Photoswitch Division
•
Combustion Control Division
Photoconductor-Transistor Division
•
•
.
unswerving confidence in technological advancement
David
Co.;
Morris
'
willingness of American industry—and indeed peoples
standards of living.
Kuehner of
'
ever-continuing growth of electronics is
Singer of Singer, Bean &
Statter of
er
capabilities of sensing, thinking and
doing—for the ultimate release of men from drudgery, and the
explosion. This is the ECA explosion extinguisher for new com¬
Joyce,
Electronics
war.
studying a host of new applications in both industrial and military
Co.; Maurice Hart of
New York Hanseatic Corporation;
Herbert D. Knox of H. D. Knox &
&
and in
bring to industry and peoples all over the world those miracle-
work.
Inc.; Philip L. Carret of Granbery,
Marache & Co.; Frank Dunne of
Dunne
the foremost part in easing the
peace
plants, in its world-wide distribution system—to
production
electronic computers for simplification of business pro¬
in
"
the
& Co.,
from initial processing to warehousing. They include,
cedures and reduction of tedious paper
consists of: Harry
R. Amott of Amott, Baker
is the role of electronics to play
installations to the widest variety of
Fireye Division
Marine Division
•
•
A.
affiliated
Ford
Building, members of the Detroit
Stock
Co.
Ashmun
DETROIT,
added
Craig-Hallum, Inc.,
Elbridge H. Smith
a
43,
Military Division
Business Machines Division
products and
new
50
The Commercial and Financial Chronicle
(306)
Continued
from
mittee
penditures
CONGDON
SIDNEY B.
should
Ohio
The current outlook for business is quite different
than it was a year ago. Last year at this time the trend
of the economy was downward and there was a great
deal of apprehension. Now business indicators are on
the upgrade and there is a wide¬
spread expectation that 1955 will be
a
year of good business.
If these
expectations for business are real¬
ized, it will mean a good year for
banking. Banking is the handmaiden
President, National City Bank of Cleveland,
business
of
prosper
ordinarily
banks
and
clearly dem¬
business and banking is
onstrated
1954.
by
It was
developments during
a year of business ad¬
justment, with durable goods industries
experiencing a reduction in
output of about 10% while nondurables were off about 2%. The sharp
setback for durables meant that the
tions made,
"The
purpose
Sidney B. Congdoa
expression of
of
confiscation.
Virginia Panhandle and the eastern part of Kentucky,
loans to commerce and industry ended the year at a level
figure.
1953 year-end
In contrast, the
year-to-year decline for leading cities in the nation as a
whole was only 4%. In the Fourth District, demand de¬
posits of individuals and business during 1954 just about
matched the average level of 1953, while the comparable
national figure
showed
an average
year-to-year increase
of 2%.
us
who
in durable goods
I
balance.
is
there
if
difficult to
procedure
a
reached
even
We
We
an
shall
Control of the Federal Budget, in my
truly
sound
of
judgment, con¬
importance to maintenance of a
great
years
lion
legislation and
a
have reintroduced proposed
Constitutional amendment designed to
establish a procedure by which Fed¬
eral expenditures could be limited
to
revenues
and thus
put
an
The
there
Congressional
in
is
Cleo
or
now
budget.
Inflation
be
effective
the
no
debt
$279
billion
recent
American
The
proposal is observed
should be adopted
by the Federal Government.- Only by resolute action
principle
underlying
my
almost universally by the States and
along this line
can
there be
assurance
of further tax
,
ductions essential to
H.
R.-2
of
a
the 83rd
prosperous economy.
Congress (H. R.-30 in the new
maintenance
of
a
confitheir
of their willingness to pledge
Syracuse and the Central New York
as the
nation prospers.
It is my
say,
prosper
1954—lower defense expenditures
liquidations—will no longer be impor¬
we can
write the "epitaph"
goods"
"finished
ownership among newly married couples and the
home
,
needs
the
DAMON
of
their -growing
conditions
business
families make anticipated
from the construction
good
look
activity standpoint., I expect a record demand for mort¬
residential and local public fields.
activity is naturally based on the
premise that there will be sufficient mortgage money. -
gage money in private
The expected building
•
serv¬
Our
has
Government
a
tremendous
sway
over
our
Based on past performance I am
completely confident that our leaders will exercise this
power prudently, accurately and swiftly if needs be, to
maintain our high standard of living, production and
profit. If this is done, 1955 will be recorded in history*
as the kind of year I am confident it will be.
complete
economy.
.
:
|
DEANE C. DAVIS
President,; National Life Insurance Company,
Montpelier, Vermont
-
.
,
1
i
*
•
'
.
.
^
.As the new>year
gets underway, the American econ¬
strength, and appears to be
shaking off the slower tempo which prevailed during
1954. Every estimate of the outlook must be predicated
upon the assumption that war will
-
omy
surveys,
westward, in the United States, the
trend toward decentraliza¬
in industry and the
steadily
rising standard of living. The chief
Ralph s. Damon
problem in the airline industry—one common to other
businesses today—is one of rising cqsts which narrow
the profit margin. While wages and material costs re¬
main high, and while new equipment costs and deprecia¬
tion charges are generally climbing, the price of our
product to the traveling public has actually gone down.
In order to overcome this
problem by penetrating
the great travel market potential, the airline industry
will be a strongly competitive one in 1955, in equip¬
ment, routes, services and sales..
We in Trans World Airlines are looking forward with
great excitement to 1955, when we will celebrate 30 years
of air service to the public.
Throughout the year events and achievements in
TWA's development, symbolizing past, present and po¬
tential future growth of. all commercial air transport in
the United States, will be
considered
consumer
housing replacement needs of the many who have purchased since the war and now need larger homes to meet
or
highlighted.
exhibits (impressive
will not break out.
Excluding the
possibility of war, there
five
sources
of
place,'
it
at least
strength
In the first
are
substantial
in the business outlook.
is ; apparent
that, even
heavy expenditures for
necessarily be contin¬
without war,
defense must
ued.
Secondly,
housing
well approach a record
starts may
in 1955, and
other construction promises to occur
at
-
a high
rate. Thirdly, surveys of
capital expenditures for 1955 indi¬
cate that they will take place at a
rate closely approximating that of
1954.
.
re¬
be
of
borrowing.
Nationally and locally the anticipated outlay for
home building is favorable, provided the general eco¬
nomic activity remains stable.
Easier terms on Govern¬
ment insured mortgages, the
continued trend toward
tion
now pays
the
of
inventory reduction cycle, the
levels of "production may be boosted above those pre¬
vailing through much of 1954.
Rising business activity will generate new credit de¬
mands.
The apparent increase in the volume of new
orders and the replacement of inventories to keep step
with a business revival will further necessitate increased
general
suggests
and the
a measure
burrather that, because
the
of
good
optimistically toward the new year for
growth in business volume, improved gross
economic
in
dence
inventory
hold,
look
national
indication
and
activity
The local credit
safely
may
borrowers
tant depressive influence. I would not say that business
is discarding any conservative inventory policies it may
include the growing population shift
$42.18 in taxes just for the
annual interest charge alone. In fact, the annual interest
charge on the Federal debt is now the largest item in the
"Federal Budget except for national defense.
average
and
b
nec¬
the
business
flationary factors of
•
if it wishes, direct a
such an easy road for
of
busy year.
S.
of
the
expectation that 1955 will include a continued gradual
rise in over-all business activity.
The two major de¬
expects—
Indirectly, other growth-producing
factors for the airlines, according to
weapon
national
a
will
area
sion of aircraft fleets.
government is trying to protect. It jeopardizes
all those who live on pensions, savings and insurance.
present
Needless to
in 1955.
Major traffic-growth potentialities
cultivated directly within our
industry are concentrated in lowpriced tourist air travel, tour-group 'k
travel, thrift-season discounts, paylater plans, improved dependability
and reliability of service and expan¬
ones
The
be
in
income to meet present needs.
future
to be
procedures
that every American owes $1,729 as his share
will
good
Davies
w.
employment and
the last few years.
against it. The people
who get hurt most by inflation in many instances are
one
trend
the fu¬
experi¬
earnings, and further expansion of markets and
ices over the rapid advancement of
government to follow that we must be on guard always
against it and a means of reaching a balanced budget
would
to
continued
can,
is
1955
Local loans
ago.
are
the future months.
The scheduled airlines of the United States have
reason
to provide a means whereby
Congress
balanced
Craig
year
part
lenders
no
year
the
on
President, Trans World Airlines,
end to
incurrence of debt makes it
essary
more
a
discounts
reaching a new
high, indicating increased confidence
(1) To add more than 2,000,000
telephones.
Last
year
we
added
about 1,900,000. (2) The volume of
RALPH
tures is related to income from taxes
Jr.
F.
We think
where the authorization of expendi¬
F. R. Coudert,
this
tem
and
that
fact
plaoe
and
major change in the
international situation, the Bell Sys¬
taken.
was
little
New
picture of many local
improved measurably
is
against
as
have averaged about $1.2 bil¬
year.
Last year they were
$1.4 billion.
Perhaps they
a
are
State
companies
study tell us
Assuming
Central
by our bank ap¬
very bright.
The New
Thruway and the St.
financial
The
to
will be
incurrence of
debt except in time of war or other
grave national emergency.
One of
these proposals was favorably re¬
ported by the House Committee on
Government Operations during the
last Congress, but no final action
deficit-financing
a
close
I
economy.
is what all our
the
served
area
Seaway will have a com¬
plimentary effect.
Local bank de¬
posits have reached an all-time high.
is right and
necessary
to meet the tremendous
growth that is surely ahead for this
country of ours.
Our
expenditures for new con-,
struction during the nine postwar
and
ence
forecasts and pre¬
in
Lawrence
long distance calls to increase some 5 to 10% from
present record levels.
Our merchandising efforts are proving very effective.
U. S. Congressman from New York
be
in
of
will hold true.
parently
h.
invest
Trust Company
Syracuse, N. Y.
York,
York
Telegraph Company
to
DAVIES
Conditions
CRAIG
That
ture.
loanable funds available in 1955, be they
municipalities, or buyers of a new
home or purchasers of consumer durable goods. It also
appears that the various types of financial institutions,
together with individuals, will have ample savings on
hand to meet the long-term financing requirements of
businesses and governments. In short, the financial cli¬
mate appears to be an encouraging element in the total
economic picture.
to
dictions for the year
-
continue
,
Ninteen hundred and fifty-five is off to a good start.
Actually, however, at this writing it is far too early to
substantial, healthy
ever-improving service.
We
have
ample
W.
know accurately which of the varied
looking forward to good,
are
progress.
business borrowers, or
FREDERIC R. COUDERT, Jr.
New
reached.
F.
fast,
City.
Midland
York
CLEO
banking in the national picture, one can say
banking system is prepared to do its part in
achieving a sustained upward trend in the overall level
of business activity. For example, sound borrowers will
tinues
Central
the
"
President, American Telephone and
for
HON.
Marine
by which a balanced budget could be
though there may be difference of opinion
the
find
HARRY
Chairman,
convinced-that decisive progress can
gains in the Cleveland-Pittsburgh-Detroit area may well
As
-
direction in the years immediately
to when it should be
these
We in TWA look to the immediate future with great
anticipation and to the long-range future with optimism
for new growth and progress.
be
ahead
a
will on all sides to achieve results. It is
understand how anyone could fail to support
am
this
in
of
facilities, will take place in the spring of 1955. !.
nance
there
made
fleet
new
a
Kansas
It has come within sight of balancing the budget.
appears to be springing up an unjustifiedly
defeatist attitude about the possibilities of obtaining a
Yet
exceed the national average.
that
in
Administration has achieved remarkable
regions of the nation are encouraged
by what history tells us about the cyclical behavior of
the durable goods industries. Just as they decline more
in a business recession than does the economy as a
whole, so do they rise more in a business recovery than
does the national economy. It follows that if 1955 is to
show an improved level of business activity, then overall
growth, will be
built
reducing Federal spending over the past two
in
engaged in business or banking
are
be
years.
as
of
Those
to
taxation has reached the point
But still the government -spends more-
than it takes in."
success
commercial
$18,000,000 overhaul
Ceremonies to mark
the laying of the cornerstone for the new base, to be
equipped with the newest airplane and engine mainte¬
base
of Federal
"The rate
The present
example, in the Fourth Federal Reserve District,
which includes Ohio, Western Pennsylvania, the West
For
the
service and
reduction feasible."
make tax
money
Upon completion of this delivery, TWA
sky-fleet of more than 100 Lockheed Con¬
Highlighting TWA's planning for its fourth decade of
Congressional policy that will
a
a
dependable aircraft in the world.
budget is balanced, an to re-establish the Constitutional
control of Congress over the expenditures of public
monies.
The enactment of this leglisation will be the
effective
over
this fleet will be augmented by the
turbo-compound Super-G Constellations
stellations, the largest
that
policy of balanced budgets, to' overcome contentions
exorbitant taxation cannot
be reduced until
global airline with
a
year
new
have
of H. R.-2 is to establish a legislative
our
into
years
order.
on
will
funds in reserve,
be necessary (by placing
the
aircraft, and 33,000 miles of routes
Early in the
now
judicial branches of the government, the President
shall from time to time during each fiscal year take Such
may
150
first of 20
and
as
of
route from Los Angeles to Salt Lake
a
over
four continents.,
fhat "notwith¬
appropria¬
with respect to the legislative
except such
fleet
a
standing by obligational authority granted or
ment.
below
biplanes and
City have grown
such'year except
for
The bill provided further
the stated goal.
.
business adjustment was felt particularly by the Cleve¬
land-Pittsburgh-Detroit region of the nation, simply be¬
cause that area specializes in the output of durable goods.
And as one might expect, regional banking data on loans
and deposits reflected the degree to which the respective
areas of the nation were affected by the business adjust¬
15%
nal
during each fiscal year
revenues
apportionment of funds, or otherwise) to ensure
compliance with the first Section of this Act."
The proposed Constitutional amendment is identical
in form and, of course, would be more effective than any
statutory limitation.
The House Committee in reporting H. R-2 said:
relationship between
close
the
exceed
by
ity of the customers they serve.
The
government
of the
not
"(1) in time of war declared by the Congress; or (2)
during a period of grave national emergency declared
by the Congress by a concurrent resolution.'' It was
provided that the budget submitted annually by the
President should be prepared, on the basis of the best
estimates then available, in such a manner as to achieve
action
in proportion to the prosper¬
Operations,
Government
on
Thursday, January 20, 1955
.
Thirty years ago, TWA's first "cornerstone corpora¬
tion" Western Air Express, was incorporated. Six origi¬
reported by the House Com¬
provided that ex¬
Democratic Congress), as
48
page
.
.
Fourthly, inventory liquidation
to
have
terminated, and
appears
Deane
C.
Davis
the
rebuilding of inventories is in
process. In the fifth place, every indication points to a
Continued
on
page
52
Number 5396
Volume 131
.
The Commercial and Financial Chronicle
.
in
Elects New Officers
PHILADELPHIA,
E. Daffrcn,
Pa. —Robert
Jr., of Harrison & Co.
elected President of the Phil¬
was
offices and plants
Calif., is engaged
principally in the design, develop¬
ment, manufacture and sale of
special and general purpose elec¬
tronic
test
equipment,
aerial
cameras and photogrammetric in¬
pal
Phila. Sees. Assn.
adelphia Securities Association at
executive
furnishing
aerial
photogrammetric
services
to
public
survey
agencies
and
industrial clients.
Robt.
^
t..
,^95,
Hnmer UOllins & UO., Torrev
tlomer Collins oc Co
10
y
with
With
Financial
;
(Special
Leonard is engaging in
a
business from nffirpa at
business from offices at
215 West Sixth Street.
Lynch Adds
MINNEAPOLIS,
.
P.
Hurtubise
the
staff
Wilson,
of
108
has
to The
Financial
Appeldown
now
with
and
following
Board
of
been
added
to
FRESNO,
Harte
has
Haseltine, Gilbert &
M
South
Calif.
opened
business.
Ninth
Street,
Street
to
to
to
serve
for-three years: Franklin L. Ford,
Jr., of E. W. Clark & Co.; Orrin
V. Boop of Schmidt, Poole, Rob¬
&
erts
liams
Parke
of
Ellwood
and
the
Pennsylvania
bert A.
R.
Wenzel
MONTREAL
Wil¬
Com¬
for Banking & Trusts.
pany
Al¬
Hornblower
of
of
Governors
to
serve "
for
J/\ J
BAY CITY, MICHIGAN
& Weeks was elected to the Board
1
A
BRADFORD COUNTY,
one
-
PA.\
)
%
* Mllli
A
year.
CHICAGO, ILLINOIS
|
Robert Chaut Joins
\T
DENVER,
Kidder, Peabody Co.
Kidder, Peabody & Co., 17 Wall
Street, New York City, members
of
leading securities exchanges,
announced
associated
become
search
that Robert Chaut has
with
department
as
their
WANCISO,
\
CALIF.
___
FU6SFAFF,
ARIZ.
^YWA,
fr
*
\y*
OHIO ^
altoona,
pawtucket, R.
LX
re¬
\-J—.—j
MilAMIfM*' '*•!
specialist
a
?
^CLEVELAND. OHIO
A.
in bank and insurance stocks.
Mr.
Chaut
was
formerly
Co., Incorporated.
Blair &
with
CORPUS CHRISTI, TEX.
R. M.
Smythe Co.
Celebrates 75 Years
•
R.
-
M.
Wall
Smythe
their
ing
1955.
75th
They
firms
Co.
year
are one
Inc.,
79
enter¬
are
in January
of the oldest
CREATES MORE BUSINESS...
specializing in inactive and
obsolete
securities
affiliate
an
&
Street, New York,
in
and
they have
Jersey City.
MORE INCOME.. .MORE JOBS
Townsend, Graff Group
Sells
Kycon Pfd. Stock
Townsend, Graff & Co. and
sociates
the
on
as¬
Jan. 19 announced that
offering of
convertible non-participating pre¬
ferred stock at par
been
Net
all
($10
per
share)
fits to both
proceeds from
the
sale
of
saw
both the further strengthening of the industrial and
and the transmission of broad bene¬
employees and stockholders.
Both sales and earnings
gram
for the
year
proved that the corporations vigorous pro¬
a strong base for future
of expansion into diversified fields has created
growth.
Earnings during the past four years have increased again and again, and are
now
sold.
completed
financial position of Penn-Texas Corporation
120,000 shares .of
Hycon, Mfg. Co. 5 xk % cumulative
has
The year just
considered to be
on
a
most
solid footing, since the various
phases of the
corporation's activities tend to supplement and balance each other.
the preferred shares will be avail¬
for
able
poses as
time
general
by
the
directors.
company's
It
is
to
use
follows:
fill
about
its
000
in
of
equipment
and
by the
proximately
capital
of
in
$200,-
the
being
now-
and
for
improvements.
to
im¬
pro¬
ap¬
certain
The
approximately
will be added
and
electronic
company;
$75,000
un¬
Varian
electronic
new
certain
equipment
duced
ance
with
approximately
provement* of
test
of
the proceeds
engineering, research
development
test
of
obligations
agreement
Associates;
board
$400,000 to ful¬
the company's
der
pur¬
intention
the
company
the
as
corporate
determined from time to
bal¬
$377,000
working capital.
Hycon Mfg. Co., with its princi¬
'■Y+yj}Y>.
—
Edward E.
at 1215
offices
conduct
Wright,
elected
were
Governors
are
E. E. Harte Opens
Minn.—Julian
III, of Wright, Wood & Co., Sec¬
retary.
The
Walz
Inc., Rand Tower.
Brooke & Co.,
Vice-President; Lewis P. Jacoby,
Jr.,
of
Thayer,
Baker
&
Co.,
the
Jacob
Minneapolis Associa1esf
Brooke, Jr., of
Treasurer: and Spencer D.
Chronicle)
MINNEAPOLIS, Minn.—Gustav
With Haseltme, Gilbert
DETROIT, Mich.—Dorr W. Grover has
joined the staff of Merrill
Lynch,
Pierce,
Fenner
&
Beane, Congress & Shelby Sts.
51
Minneapolis Assoc. Adds
,
securjties
securities
Building.
Merrill
Chronicle)
to The
a1
jr.
uaiLion,
DULUTH, Minn. — Lloyd F.
Swartley has become associated
Opens
(Special
(Soecial to The Financial Chronicle)
and
engineering
W. T. Leonard
With Homer Collins
Pasadena,
struments, ordnance products and
in
(307)
a
securities
I
52
The Commercial and Financial Chronicle
.(308)
Continued
from
continuation
page
restricted
'
policies
the
on
of
part
authorities.
fiscal
of
should
factors
these
produce
a
high rate of business activity for the foreseeable future.
From the longer range point of view, while we may
have occasional setbacks, the bright promise of scien¬
tific developments which will result in a higher stand¬
ard
of
living for
the American people, defies the
imagination.
Irrespective of general business conditions, I believe
that the outlook for skilled life insurance salesmen could
be
not
It has
better.
insurance
life
been
observation that capable
my
business — not because
prevail at a particular
time, but rather because they satisfy an imperative need
which insurance buyers must care for, irrespective of
always sell
men
of the business conditions which
business conditions.
It
is
belief that if
my
capacities
to
life
insurance
devote
agents
improving their skills and their
their clients, and carefully select
be nothing but rosy.
serve
their prospects, the future can
WILLIAM DENNY
Executive
Vice-President
General
&
1955 should
exceed that in 1954, both
in volume and dollar value.
in
With this encouraging economic outlook, New Orleans
Service Inc., the utility company which serves
the city with electricity, gas and transit, looks forward
to
continuation
a
has carried
Merritt-Chapman & Scott, which currently is engaged
many
widely diversified construction projects all
and
United
the
over
States, in Canada,
in Australia, New Zea¬
overseas
land, Greece, India, Cuba and Lab¬
rador, is looking forward to 1955
with a great deal of optimism.
We
that
feel
best
our
and
scene
1955
will
be
one
of
barring
years,
developments
the
on
assuming
significant examples.
during 1954 when a fourth generating unit
operation at Public Service's second
steam-electric generating station. The installation and
operation of the new unit brought this modem, semioutdoor type station to completion and raised the com¬
pany's total system capability to nearly two and onehalf times what it was at the end of World War II.
to conclusion
placed
was
in
being completed, work on a
generating station was begun to supply the future
electrical needs of the community. The first unit at this
station scheduled for operation in
1957 will have a
While this
project
based
a
unforeseen
international
102,900 kw. During 1954, Public Service
acquired additional property adjacent to its Market
Street generating station for future expansion of that
facility.
capability of
Public Service's
gas system during 1954.
Most of that amount went for
extensions and
replacements to the gas distribution
system, to serve more than 3,500 new customers and to
provide lor the increasing requirements of existing cus¬
tomers.
In November, 1953 a fourth point of entry for
natural gas was placed in operation.
than
$1,300,000
on
ciations in
The
Denny
tors
review
provided by trade
the construction field.
Associated
of
General
Sixty new 51-passenger, diesel buses were placed
America, Inc., in its
the United States.
President, Middle South Utilities, Inc. i
tinuing increase in
Several
favoring
as
construction for
highways, and other
catch
to
up
and
the
con¬
considered by industry
continued
a
increasing volumue
—plastics,
chemical,
electronics
fields
and
atomic energy—that will require more
tories and
for
all, 1955 looks
now as
good
a
good year for
a
industry
applications
of
factories, labora¬
other physical facilities.
construction and
mean
of
a
good year
for construction will
year
us.
interest
and
an
intelligently
diversified
other
countries.
to
goods
domestic
and
services
and
areas
for
other
Traditionally accustomed
interdependence,
the
A
number
locate plants
South.
An
abundant
of
electric
have
been
and
annually.
rural
showed
1953.
an
These
In 1954 the
whole.
George S. Dinwiddie
by
and
manufacturing
industries,
and
of
trade with scattered markets
resting on widely diversi¬
fied sources of
purchasing power. Louisiana's crops,
such
as
to many
ucts,
traffic
cotton,
sugar
different
by
rice, and. its seafoods
consumers.
petro-chemicals,
served
and
and
move
So do its petroleum prod¬
other
manufactures.
The
the Port of New Orleans originates
from and is destined
for the peoples between the
Ap¬
palachians and the Rockies, and in all the nations of the
world.
The economic horizons of New
Orleans
is
customer
increase
general
is
of
trends
New.
being added at
are
use
be trimmed
business
business psychology.
inventories, which have
and
Business
likewise been undergoing
expected
of
new
a
I am, finally, a firm believer in the importance of
psychological factors, and I feel that there is much
greater optimism on the part of business and the public
than there
was
a
year ago.
these
All
things, in my book, add up to a generally
good outlook. There should be a modest increase in
total spending and a modest increase in the purchasing
power of the people.
year
System
the
peak
load
is
The installation of
are
not
The Middle South
for
14%
conditions.
business
has
artificial stimulants and sedatives.
'.'sobered
a
up" and I devoutly hope
chance to
Which
in
result
what
see
brings
being equal,
capacity, bringing the owned
This
year-end.
total
during
expected
a
Another
1954.
capacity
new
the
new
high
coming
135,000-kilowatt generating
we
to
me
in
1954.
This
figure,
of
under construction.
facilities will
be
at
a
Construction
reduced
struction of transmission
bringing
tomer,
1954
is
power
course,
new
in
level
generating
1955
but
If
we
final conclusion:
new
The
ideas,
and
Total
to
we
That
capital
at
outlays
proximate $48 million in 1955.
approximately
are
of business
should
be—then
we
the
over
I
defi¬
going
are
improvement by the creation
the creation of
means
prod¬
new
concepts.
new
opportunity is there, but
through the door.
and
pursue
is going to shove
no one
We must stand
on
our
feet
own
it aggressively.
ERROL W. DOEBLER
President, Long Island Lighting Company
It
is
quite apparent to me that the new year will be
one of growth and
progress here on Long Island.
Industry continues on the move to the Nassau-Suffolk
another
area
and it looks
though the migration will gain
as
greater
momentum
ahead.
The
flux
into
expected to
cus¬
the
Nassau
the
type
of
conforms
and
light
with
the
even
months
Suffolk
industry
the
tractiveness of the
beauty
coun¬
which
and
at¬
area.
which
area
Lighting Company
the
Long Island
in Nassau,
serves
Suffolk
and
the Rockaway Beach
Queens County covers an ex¬
panse
of 1,230 square miles.
The
population of this territory has in¬
area
of
creased
Errol
W.
from
201,168 in 1910, to
1,400,000 in 1954. This represents a
44-year increase of 596%.
It must
Doebler
also
showed
that Nassau
in
the
the 59
among
be pointed out that the census
County had the largest percentage
United
States
counties
with
between
1940
and
population in
a
1950
excess
of
300,000.
What
has
the
Long
doing and what
construction
million.
are
In keeping
the third
past two years
over
Work
on
the
Company
last
nine
been
years
than
more
$245
electric customers have
new
gas customers about
with the rapid growth of Long
100,000 kw. turbo-generator within the
was
capability
130.4%
In
per year and
pace
placed in operation
Glenwood Power Station.
electric
Lighting
plans?
expenditures amounted to
averaged about 28,000
11,000.
Island
its
Since Jan. 1, 1946
Nov. 1 at the
on
This addition has raised the
to; 701,500
kw.
or
increase
an
of
the past five years.
the
Station at
new
$100
Island
million
Park
on
Edward
the
F.
South
Barrett
Shore
has
progressed according to plans and the first
170,000 kw.
unit will be ready in 1956.
casters have set their
ap¬
in
for the vast in¬
reason
ties is the acceptance on the part of
local
peoples and communities of
con¬
distribution facilities, for
continue
now
Other things
not content with that—and
are
markets.
new
ucts,
are
we
going to have
increasing population should^ of itself
our
nitely do not think
Power
from the generating plants to the
expected
levels.
of
ar¬
do without such influences.
can
a
to have to accentuate that
Island
System companies spent $64 million
construction
had
we
I think
we are
gradual improvement
a
long pull.
of
that
For
roughly 15 - years American
alternately under the influence of
been
over
to continue
reflected the large amount of new generation completed
or
the opinion
ventured
we
sort of "new
a
normal," and I would certainly
be inclined to retract that opinion in the light of
increase
at
to be
level of industrial construction.
rate
System companies completed 325,000 kilo¬
generating
Doaa
appear
There is a great backlog of need for schools, hospitals,
highways and other types of public construction which,
in my opinion, should compensate for a possibly lower
cus¬
gainging rapidly, and in
approximately
I.
Leland
curtailment, also
stabilized.
of electricity per resi¬
are
see
taxes
no
commercial
and
unit is scheduled for completion in mid-1955.
activities of surround¬
extractive
Also,
1,709,000 kilowatts in August,
personal
that
so
of
sales
area,
steadily.
leveled
down,
denying that the
government spending has
great power to stimulate or depress
trend
nat¬
compared with the Middle South System peak load of
reflects this
supported
ultimately
there
but
trans¬
generating capacity of the Middle South System to 2,-
for the
in
balanced
de¬
through 1955.
year.
the
increasing
tomers in these classifications
pattern of improvement. Its expand¬
ing
population,
employment
and
ing
area
many
of the
residential, rural
to
power
customers
1954
of
are
further
decrease
be found in this
can
two
The
028,000 kilowatts
income
Many
efficient
water,
Along with this industrial growth
the past decade
area
fresh
has
past
much to
very
represent prospects seeking to
ample supply of productive labor,
resources,
erally exceeded the
as a
prompted by the active
are
of them
watts
The New Orleans
like
in the smaller communities of the Middle
population,
income, trade, industry, traffic, and
output of raw materials have gen¬
United States
would
could
which
the
approximately
has
I
being
as
com¬
Mississippi
Power
&
Company and New Orleans
Public Service Inc.— are continuing
inquiries
for
velopment programs which the System companies spon¬
dential
regional
averages
System
inquiries from businesses that are consider¬
of about 4%
South has been quick to respond to
the
new
demands
of
world-wide
wartime and postwar markets.
In
consequence, during
its rates of growth
of these
directed
for
Company
on.
spectacular.
spending,
decreasing
years,
it
all
at
region.
effort are producing increased,
sustained, and balanced
purchasing power throughout the South. It flows from
an increasing and stable volume of
production of more
Chemical
appearance
coming months
not
Government
been
Light
portation and expanding markets
President, New Orleans Public Service Inc.
aroused
South
ing establishing facilities in the three-state area.
ural
GEORGE S. DINWIDDIE
An
receive
to
sor.
if it will be
but
Company,
Edgar H. Dixon
which will accentuate the demand
new
Middle
1
The readjustment seems to
its course, and I see busi¬
in the
ness
good
us
panies — Arkansas Power & Light
Company, Louisiana Power & Light
community and transportation facil¬
rapid developments in
All in
schools,
in¬
commenced
plants
power.
The
needs; the steadily
run
current
1955
industrial
new
of
for construction of
that
are
operation, and these are gradually
building up to full employment and
full
usage
of electric power.
In¬
cluded
are
several large chemical
plants
and
manufacturing opera¬
tions
of
other
kinds.
Moreover,
some
of the manufacturing plants,
the pulp and paper producers, and
the oil refineries in this region are
undergoing
important expansion
and are taking increasing amounts
year
favorable for
services, housing, schools and other facilities,
more
of
the
ninth successive
are
are
with present
creasing population
for
number
a
number of years.
a
These include the demand
ities
year
expectations
1955."
long-range factors
specialists
of
"prospects
in
.
will be another
year of growth for the Middle South — the states of
Arkansas, Louisiana and Mississippi. During the past
Present
reports
States for the
and adds that
1954
have
rived at
H. DIXON
Jan.
months.
Last
EDGAR
annual
outlook, for instance,
and
in
1954. The new vehicles, which replace a
corresponding number of older vehicles being retired
from service, are of a new efficient and comfortable type
which has recently come into use in urban operations in
Contjac^
that construction volume records were shattered
in
asso¬
I. DOAN-
The Dew
television, comedian
George Gobel said this was not really a new year at
all—it was just "the same old year with a new number."
His gag, economically speaking,/ appeals to me as
being unusually apt. 1955 looks to
me
very much like a continuation
of
1954, or at least of its later
not
industry generally and is
an
analysis by company
of estimates
spent on
was
operation in
continuance of
specialists of construction trends and
continental United
was
his
In
off.
My feeling of confidence reflects
that of the
construction
which it
Here are
expansion program
major expansion of electric capability was brought
A
current economic trends.
William
the
of
throughout the postwar years.
on
recent
some
More
Manager,
Merritt-Chapman & Scott Corporation
Construction in
President,
third
their time and effort to
LELAND
,
..
~
Public
combination
The
production, but are unlimited
specialized
by
in their potential.
credit
liberal
of
50
Thursday, January 20, 1955
...
sights
In addition to
on
this,
our
fore¬
the demands for electric
Continued
on
page
54
Number 5396
Volume 181
.
The Commercial and Financial Chronicle
..
Charles E.
Detroit Stock Exch.
Theodore Tsolainos
(309)
Exley, Chas. A. Par* *
A.
McDowell, Straus,
cells & Company. '
George
Elects New Officers
Forms Own NYSE Firm
formation
The
Blosser & McDowell.
Henry
Theodore
of
DETROIT, Mich.—The Detroit
Exchange announces the
New York
City, as members of election of the
following officers
the New York Stock Exchange,
for 1955:
Tsolainos
&
Co.,
Wall
14
Street,
was
a
n
nounced
-
b y
Theodore
P.
Tsolainos,
President
worth,
the
R.
pany.
principal.
-+-
C.
O'Donnell
Dil-
H.
Lawrence
Com¬
&
k
Vice
-
President
A.
Warren
—
Baker,
Simonds
&
Com¬
pany.
Treasurer
New
York
Chas.
Stock
Exchange
firms
for
past 28
in
Oppat
v
;
E.
Exley,
for
a
C.
T.
Warren
the
Olson of Wm.
Company;
&
Roney
up
Bennett,
Bennett & Com¬
of Manley,
pany;
T.
Roy
W.
also
was
reappointment
of
made
Fred
as
terms
W.
Raymond
term
of
Miottel
and
1955
Clarence
are:
A.
Horn, First of Michigan Corpora¬
William
Moore
Reid,
&
Frank
Moore,
Company;
Reid,
E.
Higbie
McDonald,
Andrew
&
C.
Company;
Voorheis, Goodbody
Company;
George Herrel
Auditor.
Wynn
F.
George Herrel,
expires in
past 35 years, and
A.
Walker
Davis,
of
Dickinson, Wright,
McKean
as
and
Counsel
Cudlip
and
will
Edwin
a
member and president of the
Exchange
members'
Five
and
Twenty Club, died suddenly at
the age of 68.
&
With Samuel & Engler
Wakeman,
COLUMBUS, Ohio—Richard L.
Walker
With First of
(Special
to
The
Michigan
Financial
Marks is
now
pany,
Chronicle)
16
Corporation, Buhl Building,
members of the Detroit and
Mid¬
west Stock Exchanges.
become
&
East Broad Street.
to
The
Financial
S.
Hancock, 53 West Main Street.
1
was made a gen¬
eral partner with Parrish & Com¬
Mr. Tsolainos joined Dela-
pany.
January, 1944
general
where
as
a
remained
his
partner,
until
he
the
purchase of
Exchange seat and
Stock
own
formation of the
firm.
new
S. F. Slock
Exchange
Holds Elections
SAN
San
FRANCISCO, Calif.
Francisco Stock
its
annual
The f
—
Exchange: at
elected Wil- •j
meeting
liam H.
Agnew, of Shuman/AgCo., Chairman of the Board
&
new
of Governors. Elected
of the Board
D;
for
Warren
were:
Berl
Davis,
&
of
as
members
•
-
'
:
2 A'''',
/,
,
*■
two-year term
a
v
Berl, of, Edwin,/- / ^
and George W.
'
Skaggs & Co.
-
H.
Sons,
..
Davis,
f
Carry-over members of the Board
Scott
are:
H.
Stewart/
Jr.,
of
Stone
& Youngberg, R. E. Van
Naiilen, of Henry F. Swift &
Co., and Ronald E. Kaehler, Pres¬
ident of the Exchange.
The ele-
der
vation of Agnew to
ship
created
Board,
a
be
to
;
the Chairman¬
vacancy
filled
the
on
the
at
first
meeting of the
Marco
ing
new Board.
Hellman, the
F.
Chairman,
complishments
and
event
for
seat dividend
The
were
Jr.,
the
of
for
additional
16
result of
25%
a
Dec. 30.
on
Nominating
the
ensuing
year
R.
William
Bias,
follows:
as
of
as a
results
Committee
year
outstanding
Exchange in 1954
the
memberships
ac¬
past
the
the creation
was
the
of
that
stated
on go¬
reviewed* the
of
Shuman, Agnew & Co.,
Chairman; Ernest E. B'um, of
Brush, Slocumb & Co., Mark C.
Elworthy, of Mark C. Elworthy &
Co., Howard J. Greene, of Sutro
&c Co., Marco F. Hellman, of J.
Barth & Co., and Richard Lawson,
of Lawson, Levy & Williams.
Immediately following
nual
the
\
an¬
meeting, the
Board
held
elected
its
new Governing
first meeting and
Barth & Co., for a
to fill
I
one-year
in
n
the starred
ship.
plant,
The
new
Board
elected
~
George
Davis its Vice-Chairman.
area
remarkable family of derivatives.
their
Agnew taking over the Chairman¬
W.
Virtually laboratory curiosities a few years ago, the
plant for the
production of the Nitroparaffins and
Nitroparaffins have been under study since 1935
commercial
term
the vacancy created by Mr.
above, construction is well un¬
derway on the new five million dollar
E. Stewart, of J.
Berwyn
a
The
new
major step in the company's Nitroparalfm
expansion program, is expected to go on stream
Located at
(Special to The Financial Chronicle)
Sterlington, Louisiana, the new plant is
surrounded by
BEVERLY
Lipman
in
derivatives, which have already proven useful
wide range
a
HILLS, Calif.—Thos.
is conducting a secu¬
CSG's petrochemical facilities, which
produce such useful and basic chemicals as meth¬
anol, ammonia, and nitric acid. In addition to the
rities business from offices at 227
South Robertson Boulevard.
new
Nitroparaffins plant, existing facilities at Peoria,
Illinois,
J. W. Reinhart Forms Co.
are
current
investigation.
The new chemicals
field of organic chemistry and
promise for virtually every industry.
represent a unique
hold unusual
The
experience of Commercial Solvents Corpora¬
evaluating these versatile chemicals is avail¬
tion in
able
being expanded.
of applications, represent only a
fraction of the total number of derivatives
under
Lipman Opens Office
A.
and
small
August 1955.
.
six
continuing program of experimental produc¬
evaluation. The four Nitroparaffins and
a
tion
on
request to every manufacturer.
(Special to The Financial Chronicle)
CINCINNATI, Ohio —John W.
Reinhart is engaging in
ties
business
Traction
name
in
the
•
./■•,;
\
Building, under the firm
Petrochemicals
Biochemicals
of John W. Reinhart & Co.
Reynolds & Co., 120 Broadway,
New
v
securi-
a
offices
Joins Reynolds Staff
:
,
from
York
City, members of the'
New York Stock Exchange, an¬
nounce
has
firm.
that
become
Richard
-
■
'
*
-
Graham
S.
associated
*
•
with
.
COMMERCIAL SOLVENTS
the
"
260
Madison Avenue, NewYork
16, N. Y.
Chronicle)
SHELBY, Ohio—Scott J. Han¬
cock has joined the staff of Win
January 1941 he
field & Delafield in
connected
Engler Com¬
Joins Win Hancock
with First of Mich¬
(Special
igan
has
with The Samuel
&
In
.
(Special to The Financial Chronicle)
with
1926
former char¬
ter
DETROIT, Mich.—Alfred L. M.
1957.
member of the
a
American Stock Exchange for the
Baker, Simonds & Company.
Paine,
Edward C. P. Davis and William
continue
are:
for
as
the Nominating Com¬
Higbie & Company,
expire in 1956;
J.
Secretary and Examiner.
three-year term
Neil of Reid,
Webber, Jackson & Curtis, whose
& Company.
Governors elected to the Board
registered
Livingston
Company.
'
A. Parcells
the
of
representative
T.P. Tsolaiaos
Charles
years,
having started
as a
—
Announcement
the
Jr.,
mhking
Edward
are
White, Bower & Prevo
Elected tq
tion;
whose
Wood,
He has been
associated
with
Nauman,
VanderVoort,
McFawn & Company.
Other Governors
of
mittee
Stock
Board
Bower
will continue
53
The Commercial and Financial Chronicle
Du Mont
Continued from page
52
service in the years to come and our engineers
planning accordingly.
<;Recently the Long Island Lighting Company looked
back through the years in observing the 75th anniver¬
are
of Thomas A. Edison's discovery of the incandescent
Each one of us are mindful of our responsibility
to pioneer and adopt the most modern and economic
sary
lamp.
generation and have taken a step
possible uses for nuclear energy
for production facilities.
One of our very capable engi¬
neers has been assigned as a guest engineer and is study¬
ing the development of nuclear steam power reactors
of
methods
power
study and
the
toward
National Laboratory.
Brookhaven
the
Administration Build¬
Construction of the $2.6 million
Central Operating Headquarters at Hicksville
get underway during the year and we expect that it
will be ready for occupancy this fall.
It is a further
step in our overall design to expedite service to our
customers by means of centralization.
All of this indicates that our managerial team has
ing at
our
and growth in order
to provide gas and electric service to thousands of new
residents who move to this area each year and also to
its thumb
on
for their plants.
ideal location
the
be
ALLEN
B.
MONT
DU
President, Allen B. Du Mont Laboratories, Inc.
continuation of expansion
£a most phases of the television and electronics industry
—and at a rate which few industry leaders anticipated a
year ago.
Television broadcasting in the second year
since the lifting of the "freeze" on
-frrr?-.'.-*new station construction saw an in¬
crease of approximately 75 new sta¬
tions on the air, bringing the total
operating stations in the United
The year of 1954
has
seen a
States
end.
to
around
425
the
at
year's
An unfortunate occurrence was
the large number of UHF
stations that ceased
cided
air
not
to
television
operations or de¬
attempt
to
go
the
on
during the year—a direct result
the FCC allocation
plan which
of
intermixed VHF and UHF stations in
the
same
market areas.
television
In
receivers, the indus¬
try has had one of its highest pro¬
Dr. Allen
duction years, with over 7,000,000 re¬
B. Du Mont
ceivers
produced. The sale of blackreceivers during the fall selling season was
and-white
Our Instrument Division
was
belief
still
In
that
at
reasonable
a
the
had
we
first
appreciable
tracts for electronic
Du
Mont's
Tube
Thursday, January 20, 1955
.
around 20,000 sets, and the industry de¬
veloped new color picture tube types and sizes. It is
possible that some degree of standardization in color
picture tube size will be reached in 1955, and that manu¬
facturing cost reduction can produce large-screen color
sets at
Du
somewhat reduced price.
a
Mont's
Television
Receiver
Division
Our
were
saw
sync
tube.
ment of
a
The division followed that
with develop¬
up
21-inch rectangular color tube last September.
We expect to have some volume production of rectangu¬
lar color tubes later in 1955.
Our Research Division is continuing its system investi¬
gations of the problems of color television. Based upon
its years of previous work on color systems, production
divisions have been enabled to produce and
system equipment throughout the industry.
Our Communication Products
1954
to
include
the
expanded
Division
was
production
sell
color
tured
by
the
Television
Transmitter
a
and
field of
to
manu¬
facture and sale that
During the
and
year
marketed
a
we entered
early in 1954.
this newly named division introduced
color
version
of
.the
widely
accepted
Du
Mont Multi-Scanner for presentation on the air by
television stations of color films, slides, and opaque ma¬
terial.
A complete line of equipment for conversion of
television
stations
to
color
broadcasting
was
also
de¬
new
trial
design of Du Mont's miniature Tel-Eye indus¬
television
gives every promise of solving
many of the problems inherent in other miniature TV
cameras, and we anticipate a
large sales volume of in¬
camera
dustrial closed-circuit equipment in the years ahead.
In
mobile
radio
the
ment,
Mobile
Communications
Depart¬
starting from scratch, has in less than none year
designed and made available for sale a complete line of
last
year,
apparatus as television
world-wide medium.
slowly expands into
As for
a
a year of good con¬
heavy business activity. Certainly
every branch of the electronics industry will participate
if such analyses are correct.
I expect that Du Mont's
manufacturing operations may exceed any previous
1955, most analysts foresee
demand
sumer
and
advancements
even
in
intense
more
will;'be
competition
that
prospect
1955, and one
be the contin¬
result will
uing effort to market the best pos¬
sible petroleum
products.
petroleum in
Domestic demand for
failed
1954
1953
the 4%
increase
to
over
generally predicted a year
ago. The increase was less than 2%
in 1954 over 1953. However, this set
as
States
all-time record for United
an
in
probable that domestic demand
continue
will
1955
to grow,
pos¬
year's activity.
As far
it
still
the television receiver market is
as
concerned,
black-and-whife
year.
I don't believe that color receiver production will
go much over 50,000 units in 1955. The development of
the right color tubes; the refinement in receiver circuits;
the necessary reduction in manufacturing costs; the large
scale presentation of color programs in all markets—all
of these things are taking time, Eventually, yes, televi¬
looks
Robert G- Dunlop
to be in healthier shape at present than it was
a year ago.
There is a better balance between inventory
and demand now than at that time, and the genet al de¬
earnings
oil
in
cline
production
from
1954.
of
refining
and
the latter months
signs of leveling off during
showed
.
companies, profits for 1954 will
Despite this, however,
the oil- industry demonstrated its unflagging confidence
in the future by investing an estimated $4.6 billion in
capital improvements and in new plants and equipment.
For most domestic oil
be somewhat below those of 1953.
to
me
sion will be both
a
like
primarily
color and
a
black-and-white medium.
a
However, in 1955 it looks about 99%
black-and-white.
Drilling activity,
supply depends,
which the country's future oil
carried to a new all-time high of
No slackening of this drilling effort
upon
was
53,000 wells in 1954.
is indicated for
As
in
1954.
all
Two
1955.
the oil industry had its problems in
problems which carry over into the future
years,
oil imports and natural gas.
concern
Oil
DOUGLAS
W.
DONALD
President, Douglas Aircraft Company
In
this
with
common
virtually all segments of business in
the airframe manufacturing industry en¬
joyed one of its most successful years during 1954.
Perhaps the most significant and, to members of the
industry, the most gratifying aspect
of the year just concluded was that
our
operations achieved a stability
country,
airframe weight re¬
ported at year's end by the Aircraft
Industries Association was some 150
million
same
pounds
as
When
it
approximately the
figures
estimated
is
of
volume
—
the
that
12
compiled,
are
the
total
This
Donald
World
of
problem is of
Between
Federal Power
exploring for
to meet future
compares
$5,100,000,000
tinued
to
lead
new
a
In
view
emphasis
nation's
of
with
on
the
role
of
program,
A downward trend
and
As
the
I
New
am
Year
closely
reached
a
military
maintenance
reserves
on
scale necessary
a
will
have
level.
S.
EATON
wind, and the American
econ¬
begins, the basic industries with
associated—railroading, coal, iron
For
healthy
and
expanding
over the
long-term, how¬
the American people must in¬
a
economy
ever,
sist
on
fundamental
and
far-reach¬
ing reforms in Federal Government.
There
and
can
be
permanent progress
no
prosperity under
a
taxes its citizens to the
fiscation
in
bureaucracy
tiative
order
that
those
of
Cyrus s. Eaton
trial
stature
America
because
it
was
grew
the
nomic opportunity for everyone.
to
of
to
land
The
system
point of
red
of
man
the
citizens
its
that
con¬
support
smothers
same
mounting layers
regulation.
in the monthly unit production of
program
serious
1955.
aviation and missiles in this
the outlook for 1955 appears
mobilization
a
ore
and
steel, are experiencing a
heartening resurgence.
All present
signs point to a busy and prosperous
total delivery of 195
1954, and, according to esti¬
mates of the A.I.A.., is expected to continue through 1955
and into 1956. That is when current programming indi¬
the
poses
is again hitting its stride.
which
military aircraft began in
cates
This
demands.
Business has its second
omy
capacity of 36 passengers or more.
current backlogs of orders and growing
defense
gas
CYRUS
aircraft having a
.
As
States
Chairman of the Board, Chesapeake & Ohio Railway Co.
production base.
with
the world,
Commission.
consumer
the
to
United
extremely doubt¬
if, under Federal regulation, producers will find
adequate incentives to continue the hazardous business
production of military aircraft.
Despite
'the preponderance of military production, deliveries of
civil aircraft continued at a substantial rate during 1954.
Sales of
American-made commercial transports con¬
voted
the
ful
of the industry's effort was de¬
and 90%
85
of
threat to future gas supplies, for it is
substantially to,
and efficiency of the manufacturing effort
and to the creation of a sound
different nature.
a
Supreme Court, gas producers whose gas traverses state
are deemed
public utilities under the jurisdiction
ing the past two years has contributed
the economy
decision
recent
a
sales
is
the largest dollar volume of sales
W. Douglas
reported by these companies since
War II.
This condition of relative stability dur¬
sales
1953
gas
of
airframe
largest
companies for 1954 will be in the
neighborhood
of
$5,200,000,000
to
$5,300,000,000.
natural
result
of the
of
that of 1953.
final
The
the
lines
seldom realized.
The output of
imports have been averaging more than a million
a day for the past two years.
This has an effect
upon domestic crude oil production, which in 1954 was
slightly less than in 1953.
However, the current im¬
provement in the oil inventory situation and a recent
decision to increase production allowables in Texas may
again put domestic production on the upgrade.
barrels
a
ini¬
under
tape
and
giant indus¬
unlimited
who
was
eco¬
will¬
ing to work strenuously, and to risk such small capital
he might be able to assemble, could literally rise from
rags to riches.
as
However, employment, sales and pounds of airframe
produced are not expected to decline to the same degree
unit production of airplanes. The reason is that cur¬
rently-produced aircraft are larger and heavier, an in¬
creasing amount of the aircraft industry's sales are in
as
the field of
signed and sold.
A
Competition in 1954 stimulated many
product quality, particularly in
motor
gasolines.
There is. every
in
in
television
Division,
new
industry in 1955.
favorable.
formed
of
transmitting and studio equipment, formerly manufac¬
produce mobile radio equipment,
important
appears
We
April the first large-size color tube of
the shadow-mask type—the Du Mont 19-inch Chroma-
shipments
potentials for television
unit
last
improvement in the quality of petroleum
a further increase in domestic demand are
developments
expected
by
the
oil
Continued
products and
two
Oil Company
Sun
market
additions
introduced
DUNLOP
ROBERT G.
President,
sibly by about 3% over 1954.
On
the
whole, the oil industry
smaller due to extremely
made extensive plant improvements and
during the year in order to reduce manufac¬
turing costs and to provide facilities for the maufacture
of color television picture tubes.
From a technical standpoint our Tube Division in 1954
of highly satis¬
12 months
another
to
at the year's end is somewhat
below a year ago. Du Mont also increased its activity in
the
export markets and
looks forward to increased
competitive conditions in the television picture tube in¬
dustry.
defense
over
more
backlog
our
participated
Cathode-ray Tube Division during 1954
confidence
It is
somewhat
although
expect our percentage of industry sales to be
further. We are finishing the year in an ex¬
increase, but profits
with
factory operations.
increased
cellent position inventorywise.
sales
aircraft
consumption of petroleum products.
our high-quality "Wide Horizon" line of receivers was
received favorably by distributors, dealers, and the pub¬
lic. We intend to keep ahead in product development in
1955 and
unforeseen and unpredictable world events,
manufacturing industry can look forward
Barring
the
than a re¬
search laboratory, for it is a manufacturer of specialized
cathode-ray tubes and the country's leader in the devel¬
opment and production of multiplier phototubes.
Shipments against government and other orders of
Du Mont electronic equipment related to defense was
operation is
Tbis company
purposes.
strongly in the better industry sales picture during 1954.
Strengthened distribution in a number of major markets
expanded our sales potentials, and the introduction of
increased
maintained its
supplier of complex and
challenged during 1955.
port will not be seriously
expected
Laboratory
commercial planes. These orders and
continuing interest in newer and more -efficient trans¬
port types now entering or soon to enter production
indicate that this nation's leadership in civil aid trans¬
specialized cathode-ray tubes for industrial and military
of
color receivers,
equipment.
Research
dominant position as a leading
price
production
in elec¬
against large government con¬
begin initial production
wards of 175 large
particularly active
been
cathoderay and electronic instruments or devices were designed
to meet the needs for higher quality instrument products
of extreme versatility and adaptability in this age of
increasing automation and electronic control. An even
greater number of new products is planned for intro¬
duction in 1955, with diversification of markets a major
objective. Du Mont is'expanding the usefulness and ap¬
plications of electronic instrumentation and control in
many new fields as a result of its new technical devel¬
opments. The division continued in 1954 as the leading
manufacturer of Cathode-ray oscillographs, and at the
close of the year increased its production capacity to
few years away.*
some
1954
television
color
has
in the engineering of completely new concepts
tronic instrument design in 1954. Twelve new
exceptionally strong and undoubtedly reflected the pub¬
lic's
by police departments, pub- *
use
utilities, fire departments, the petroleum industrytrucking companies, and other purchasers of mobile
equipment. I expect Du Mont to be a leading factor in
this multi-million dollar business within a few years.
-
the pulse of progress
the alert and active industrialists who have found Long
'Island to
equipment for
lie
and gas
at
.
(310)
54
gtiided missiles, and the relatively high rate
require a maintenance
of high employment levels.
of research and development will
In
January of 1955, the industry employed a total of
830,000 people, making aircraft America's largest manu¬
facturing employer.
Although
production
-
of
civil
transports
is
not
ex¬
pected to equal the high-level attained in 1953 and 1954,
U. S. manufacturers-today
have unfilled orders for up¬
Today there is relatively little incentive for the spirit
Security, supervised by the state, is the most
likely lot of the common man. To those who have set
of venture.
aside
some
substantial store of worldly goods, the temp¬
tation is ever stronger to
convert their wealth into tax-
exempt municipal bonds,
and to abandon the energetic
Mr.
Eaton
is
also
Chairman
of the Board of Steep Rock Iron
Kentucky Coal Company: President and
Corporation, and a Director of The
Cleveland-Cliffs Iron Company and The Sherwin-Williams C'-mpany.
Just recently, he purchased the Follansbee Steel Corporation, Follans-
Mines,
Limited,
Chairman
of
and
West
Portsmouth
Steel
bee, West Virginia.
Continued
on
page
56
Number 5396
Volume 181
.
.
.
The Commercial and.
(311)
Financial Chronicle
the crucial
Townsend Named V. P.
Strange Arguments
Of First Boston Corp.
Election
as
of
Edward
activity
economic
is
by The First Boston Corporation,
100
Broadway, New York City.
Mr.Townsend,
$20 billion below the level of
reasonably full employment. Total production a
present about $15 to
from now would have to be
year
billion above the
a
It
"Production will rise
son
to
their
expect
astounding how frequently these strange
arguments appear!
need
the
;v
■ '
for
*
purchasing
:
power
to
have the privilege of working
production
wherewith to
purchasing
power
metals
1953-1954
buy the output!
—
with
associated
been
in
Significant Anaconda contributions to U. S. progress
Hanover Bank and Trust
Central
Company,
The
now
Hanover
Bank.
Joins Fulton, Reid
(Special to The Financial Chronicle)
CLEVELAND, Ohio—James
H.
Bell, Jr., is now connected with
Fulton, Reid & Co., Union Com¬
merce
Building, members of the
Midwest Stock Exchange.
Albert Gauthier
tMawBS
Opens
Chile;-At
(Special to The. Financial Chronicle)
4
of Chile
LOS
ANGELES,
;*
/' vy"
lu
JiliHI
Exploration
mine at Weed Heights,
November, 1953, is now producing
Copper? Anaconda's new open pit copper
sulphide ores
Company—an Anaconda subsidiary—is completed?
Chuquicarnata, huge plant for treating copper
.
Nevada,
opened in
month,
officially
5,000,000 lb.
Calif.—Albert
a
'
D. Gauthier is engaging in a secu¬
rities business from offices at 335
Burnside Avenue. He
former¬
was
ly with Dempsey-Tegeler & Co.
D. E.
Klepinger Formed
KANSAS
CITY,
Mo.—Dale
E.
Klepinger & Associates has been
heim
.
the Wald-
with offices in
formed
Building to engage in
se-
a
curities business.
Joins Barret Fitch Staff
CL
(Special
Chronicle)
The Financial
to
KANSAS
CITY, Mo.—Daniel A.
Piedimonte is with Barret, Fitch,
North
&
Co.,
1006
Baltimore
Avenue, members of the Midwest
Stock Exchange.
Aluminum. The new
Columbia Falls; Mont.
Uranium.
Anaconda reduction plant now being built, hear
Scheduled to start production in mid-1955.
Working with the U. S. Government,
processing plant and
develops uranium
ore
Anaconda builds a
properties in -New Mexico.:
Rejoins Gallagher-Roach
to The Financial Chronicle)
(Special
Ohio
rejoined
COLUMBUS,
has
Griffith
Roach
&
Jack D.
Gallagher-
—
1683 West
recently
Company,
Avenue.
Lane
He
has
been with Glore, Forgan
& Co.
W. E. Hutton & Co. Adds
(Special
The
to
Financial
COLUMBUS, Ohio
C. Peckinpagh
staff
the
of
Chronicle)
Elizabeth
—
has been added to
W, E. Hutton & Co.,
50 East Broad Street.
Brass Mills. -New
Wire Mills. Anaconda Wire &
copper tube grids for radiant- panel
Americon Br ass Co., a n'Ana con d a subsidiary;
.pre-formed
heating cqme "from The
Cable Compony expands research and?
.
production facilities for turning out its highly
ond aluminum
engineered line of copper
electrical conductors. %
With Remmele-Johannes
(Special to The Financial Chronicle)
GRANVILLE, Ohio—Robert H.
Brown
has
joined the •- staff of
Remmele
-
Johannes
&
Co.,
new
118
era
Re & Re Partner
Stock Exchange, have admit¬
can
ted Robert J. Sagare$e to partner¬
ship.
of
&
Re,. Ill Broadway, New
York City, members of the Ameri¬
-C*
-*"vi
an
copper
with
For copper
East Broadway.
Re
M. Bravman Co.
Bravman
Opens
has
York
at
165
Since World War
City? to efigjge in
a
New
welding, fabricating, and
II, copper
producers like Anaconda have been
As
bodies, and revitalizing many existing
a
result, the U.S. faces no lack of copper.
need—for
mined, refined and fabricated for all
I
Opens
to The Financial
Chronicle)
SANTA
BARBARA, Calif. —
Lowell C. Cates-is engaging in a
securities,
.
business-from offices at
1016 State Street.
ready to
the demands of industry.
he
HM44
Company
Anaconda Wire & Cable Company
The American Brass
Andes Copper
'
L. C. Cates
All the copper
peacetime and preparedness—is there,
securi¬
ties business.,
(Special
developing newr
mines with new methods.
expanding mining operations here and abroad,
we
Broadway,
and its alloys have many virtues—high thermal
conductivity, ease of machining, forming,
high scrap value.
formed
Martin Bravman & Company with
offices
replace
other metal without losing something.
drawing, stamping, plating,
a
copper
any
and electrical
ore
Martin
important fact faces all of us: you can't
Today
in
producing more?
itself created the
rise
more
consume
have always supposed that
of
of Yale
Townsend
had
graduate
Mr.
previously
we
may
to
Ordnance De¬
partment
University,
we
harder and
And
ourselves
bestir
we
order that
only if producers have rea¬
simultaneously with productive capacity is one of
A
substantially to sustain
employment.
that they- will find a market for
product.
"Thus
Army.
a
the
Planning Association.
is
Must
the
programs,
high employment level of production."—The Na¬
tional
about $25 to $30
present rate in order to approxi¬
of reasonably full
mate the level
Edward Townsend
demand must rise
consumer
at
in national defense
Townsend
Vice-President is announced
a
of
level
actual
"The
problems of economic growth. Barring
marked step-up
AnacondA
Mining Company
Chile Copper
Greene
Company •
Cananea Copper Company
Anaconda Aluminum Company
..
•
—
Anaconda Sales Company
COPPER MIKING COMPANY
International
Smelting and Refining Company
55
"56
Continued from page
the cult of care¬
empire of industry and risk-taking for
free laziness in warmer climes.
minds
best
labor
in
and
prob¬
in
tank
ECCLES; ;/■ >^
GEORGE S.
Salt Lake City,
,
from
the
pattern
of
1955.
one
year
This
is
ago.
small
is
especially noticeable in the InterRegion
where
mineral
production is so significant — with
copper, steel,
coal, phosphates and
other minerals so much a. part of
the economy. Even in uranium, the
shift has been from stock speculation
to major development and produc¬
:
There
however,
are,
in
1955,
to some
a
been
of
consumer
more
Questions of the automobile spurt developing into
boom.
Car sales have been excellent since the new
(4)
models
appeared. Whether or not sales can keep up
with production has. not been tested. This might cause
undue pressure for extension of financing terms.
Employment will not increase proportionally
with production. Productivity per worker, both in agri¬
culture and industry, is increasing somewhat faster than
is total production.
Unemployment, though lower, will
(5)
relatively large.
On
other
the
the major favorable factors for
hand,
High construction carryover from 1954 into 1955
demand for funds and building materials.
Commercial building and continued demand for schools,
(1)
high
hospitals and road construction, should be maintained
in large volume. Residential construction is continuing
on a very 4arge scale due to the very liberal financing
terms that
being offered. There is
danger that
these terms are too liberal and may develop into un¬
sound mortgage credit. There is also the possibility that
with
resit ential
construction
running
substantially
ahead of family formation, a surplus of homes may de¬
velop.
are
(2) High
mean
consumer
a
some
demand for durable goods.
borrowing.
(3) Greater
.
of
volume
retail
trade
competition with discount houses.
excellent; white sales
were
and
increased
Christmas sales
were
good.
very
Increased demand for commercial credit.
(4)
This
slight decrease in the trend in savings and
increase in
an
in
Some
reached
on
increase
in inventories.
inventories
in
This is
Low
1954 and
(6)
will
Additional
products,
points
November-December.
industrial
expansion,
in chemical and
a
chemical
and
industries, is a chemical nickel
called ALCOPLATE, which will pro¬
process
plating process,
corrosion
and
(7)
(8)
were
Some
especially
fields.
electronics
items
ordnance
financing needs
Refunding needs
are
for
should
the
This should
easily
mean
be
directed
by the
easily
this,
deficit
largely
effect.
for
the
through
a
present fiscal
the
banks,
year.
*
lock
gates
for
but two of the
the
Nineteen fifty-five should
be
an
We
for
are
Recovery in 1955 should
Barge Canal
State
York
items in this line which
we
turned
!
not neglecting the railroad field in our push
growth markets.
Last
introduced- the
designed that two
units will power as heavy a train as three usual freight
or passenger locomotives, and have also built two new,
large warehouses at Chicago and St. Louis to service the
company's expanding replacement parts business. Loco¬
motive orders have increased over the past few months,
and we expect a good volume in replacement parts and
in locomotive rebuild operations.
new
year we
DL-600 diesel locomotive which is
summing
so
activities for 1955, I would say
that we expect sales of our growth products will in¬
crease
markedly over those for 1954.
Some of this
expansion may come from acquisitions which are now
under study. We will also introduce more new products,
some for new customer industries. Altogether, we expect
that 1955 will see Alco, probably with a new corporate
name, moving ahead with an increased product line for
more
into
funds
up
our
The
trend
in
the
larger breweries,
tions
were
in the
ly.
Prior to
Paul
also be taken in stride.
•
with
good business.
very
People will
*
eat better and will be housed better.
They
will
also
be
clothed
better,
•
travel
better and have available
tools and aids working for an easier
life all around.
I only hope
that
,
of the available leisure time is
some
spent reflecting upon the workings of
the system which make this possible.
A
growing
and
increasingly
-
im¬
portant phase of our business relates
to the
prepackaging of food for self-
service
distribution
supermarkets.
We
in
the
nation's
proud to be
a participant
in the ever-increasing
effort to reduce the cost of getting
ican household.
ber
Robert G. Fair burn
and better food into the Amer¬
more
field
are
are
Our activities in the
building materials
divided between wholesale distribution of lum¬
across
the nation and retail sale of lumber and build¬
ing materials spread
110 locations in agricul¬
over some
tural California and industrial New
AH in all
England.
expect to make a good showing this coming year.
While it is accepted by. almost ^everyone who has,any
familiarity with the make-up of
will be
a
plant,
inquiries
sized
news
that, to
largest private employer in the country, is almost wholly
production for the military;* The residential
building industry which has been running at a high level
devoted to
since the end of World War II, and which more recently
has been astounding the experts, by rising almost to the
peak attained in 1951, has been supported in its mortgage
position to the extent, of over 40% by the liberal terms
of the Veterans Administration and; the Federal Housing
Administration.
of the
to
this
back
a
Added
government to
is
the
current
ure
by the taxes paid by corporations and their em¬
ployees, make even more delicate the balance of the
economy which currently Is on the favorable side. There
is
a
great responsibility to maintain this balance, and
more than ever it requires a close cooperation of
today
business and the government.
BENJAMIN F. FAIRLESS
of the Board,
firm prospects 1955 will be
steel
are
are
definite
proximately
1954 and
One
such
in
reason
is
labor costs.
the
This
year
brewery worker is one of the highest
paid in the country. Raw materials have also shown an
almost steady uptrend, also adding to the problem.
But perhaps the most important single factor is the
importance of advertising and the skyrocketing costs
means
million
tons
above
10 million tons
higher
1955
will
be
a
good
nearly all segments of U. S.
business.
It is indicated that the in¬
dustry will have an adequate mar¬
gin of capacity to meet any national
emergency and one which will per¬
rea¬
the
7
some
not only for the steel industry,
but for
the
steady
Today
for
mor¬
that averaged
during World
II, when our steel-making fa¬
cilities were hard pressed for every
possible ton of production.
mit
maintenance and repair
a year of
continued
vigorous competition, a
vital essential in a healthy economy.
proper
programs.
survive.'.
advance
year
War
why the smaller breweries are
finding it increasingly difficult to
Epstein
good
than
sons
Alfred
a
95 million tons, accounting for the fourth
highest annual tonnage of all time. Moreover, the year's
anticipated output should be ap¬
interested
economic
Steel Corp.
States
ning about
sort of deal.
some
There
United
industry with production conservatively
received almost
from medium and
across
proposal
road
multi-billion dollar
rehabilitation program across the nation.
These programs, supported as they are in large meas¬
we
we were
great extent,
a very
the private sector of the eoconomy is receiving substan¬
tial aid from the government. The aircraft industry, the
almost week¬
breweries
that there
our economy
high level of activity in most lines in 1955, it
is not too often pointed out
purchase of the big
our
country asking if
be
Re¬
of
example, the Pfeiffer Brewing
Company has just purchased
the
Jacob Schmidt Brewing Company of
St. Paul and other similar acquisL
small
taken in stride.
uY- ;V
business is
two of the powerful supports to
present business condi¬
For
daily
bullish
our
tions, food distribution and home building, it is difficult
for me to disagree with the
consensus of economic ex¬
perts that the year 1955 will be one
the
brewing industry toward fewer
if anything, was accelerated in
1954 and there is every indication that 1955 will witness
a further contraction in the number of firms in the field.
but
System.
a
the greater part of
as
There
ALFRED EPSTEIN
Financing of
have
G. FAIRBURN
Chairman
met.
can
Associated
customer markets.
1953 and
excellent year.
were
New
out in 1954.
This
...
adjustments—recession of 1953-54
is
com¬
substantial orders from the St. Lawrence Seaway Project.
The tunnel shield for the Port of New York Authority
larger cash Govern¬
will
company
!
we
Man¬
years.
Federal Reserve
Reduction in taxes will result in
ment
reserve
The
metal fabrication field, we expect that
our
experience in supplying similar heavy components
and the proximity of our Schenectady plant will result in
are
to
new
President, The Diamond Match Company
In the general
St.
be easier than in
supply of
government.
year.
in
2954.
more
to
ponents and such intricate products as 155 mm. recoil
mechanisms for the Army, and we expect to concentrate
even more heavily in this type of
production during the
areas.
less than in past two
agement of the debt should
equal
currently building "Honest John" guided missile
This should influence favorably general
activity in major mining
Federal
resistance
the
industry including a portable diesel-electric power
package for emergency and standby service; a new diesel
engine for municipal power and pipeline pumping
applications; new design feedwater heaters and evapo¬
rators; and a new heat exchanger high pressure closure.
As for so-called defense production, we will continue
to maintain our position as an -important producer of
High demand for steel, copper, building materials,
business
contamination
that of either pure or wrought nickel.
We have also brought out five new products for
require additional capital.
other minerals.
ROBERT
r
customer reaction to these items
our
failure
eries in existence at the year's end.
President, Pfeiffer Brewing Company
normal buildup is expected.
new
the Army's first atomic reactor, but
constructed so that its
by air to remote bases.
meeting of the American Petroleum Insti¬
Chicago in November. Another important Alco
development, which is especially appealing to the
production and trade establishments.
(5)
-
designed and
be transported
can
expected from increased trade, needs for working capi¬
tal
-
at
In
can
P. T. Egbert
This
at the annual
tute
and
continuing the recovery are:
with
-
power
adjustments.
There has
the recent rapid upswing, but
that the slight tightening of margin require¬
ments by the Federal Reserve, may act as a sufficient
break to hold speculation on the upside in check.
be
plant.
their
beer drinkers in 1055 t
because there is a growing realization that
beer is a
beverage of moderation and deserves a place in the food
classification—but I repeat, there will be fewer brew¬
busy year for us on many fronts. One of the
most important of these products is a diesel-electric
drilling rig power package power plant first introduced
market
over
reactor
There will be millions of
atomic
first
the
power
was
from
our
indicate
it appears
a
first
vide
concern
some
will
duced in
limiting factors are:
stock
build
is
Bottling, canning, packaging and similar equipment,
to be efficient, became more
complex and consequently
more expensive. Here again,
only breweries with large
volume could afford to keep, abreast.
six-year background, in production of atomic
equipment and our newly established atomic
energy products department, Alco is certain to take an
increasingly active role in the peaceful development of
atomic energy during the present year.
In other fields, the many products which we intro¬
lamb.
Possible
(3)
to
package
not only be
With
Some little tightening of mortgage money—-read¬
(2)
AEC
future
breweries
machines.
new
num¬
received
we
sized
As other costs climbed, it became
increasingly vital that production costs be cut to an irre¬
ducible minimum.
This required heavy investment in
outstanding
,
new
medium
efficient equipment.
.energy
number of
justment of portfolios.
Purchase
goods will mean smaller savings.
increasing
most
which
award
the
(1)
Slightly
lower
agricultural
George S. Eccles
prices. The low price, especially in
dairy and poultry products is a de¬
terring factor offsetting better demand for potatoes,
and
the
of Aleo's
components
in other fields.
beef,
Probably
the
'
and these will counteract,
extent, the general buoyancy
Some of these
an
energy
economic pattern
our
serving
and
keep up with technological improvements in the brew¬
ing industry through the introduction of new and more
believe that the company
it for all time its
a specialty concern,
has become ah industrial manu¬
the
! V
*
.
tion.
weaknesses in
has
Alco
we
indication
mountain
facts
This has been accomplished
contract,
ber of industries.
;
complete reversal
The business recovery
a
direct de¬
on
past 12 months had to
violent shift of product em¬
facturer
high level of business activity which character¬
ized the last few weeks of 1954 s ould continue through¬
the first half
The
has put behind
classification as
and
Utah
The
Beer, like other
consumer.
tually out of reach of the small brewery.
the
a
Thus,
President, First Security. Bank of Utah,
out
1955 with
its books
by the introduction of 18 new prod¬
ucts all directed to growth markets.
President, First Security Corporation and
television.
show that such costs must be spread over
heavy volume and usually, where live shows as in sports,
etc., are involved, distribution over a wide area is nec¬
essary to justify the expense.
Still another important factor in the
plight of many
phasis.
natural and human resources.
of
advent
It has been proven that one of
the most effective stimulants to this demand is television
but the cost of both shows and television time is vir¬
definite decline in locomotive orders
a
production
within
meet
the
mand of the
with the termination of the M47
and
the finest American tradition.
The vigorous
American people, with their characteristic optimism and
courage, are entitled to a fresh chance to carry their
nation to lofty new heights in keeping with its vast
prise
the face of
In
enter¬
of
Thursday, January 20, 1955
..
.
products sold to the general public, lives
Company
American Locomotive Company commenced
the largest backlog of orders it has had on
within the past six months.
agriculture, as well as
business, need to be brought to bear on the vital
lem of governmental reform to restore true free
because
T. EGBERT
PERRY
54
President, American Locomotive
The
Financial Chronicle
The Commercial and
(312)
Benjamin F. Fairies,
It also wiU be
At the beginning of the year, the nation's steel indus¬
try had achieved an all-time record capacity of 124.3
million tons annually. Confidence that the country would
continue to
enjoy
an
expanding
economy
prompted com-
Continued
on
page
58
Volume 181
Number 5396
-
..
The Commercial and Financial Chronicle
.
(313)
Continued
from
rather, abstruse
10
page
The
What
Convertibility
to
this
narrow
definition,
indeed
has
become
somewhat
of
United
misnomer.
a
States
has
The
emerged
from
the day when it did little abroad
except buy and
subject of the
been
minutes,
"electronic
worked
over
brain"
for
of the export
one
the
a
tives
present suggested: "We
wouldn't have much use for an
'electronic brain'
What
we
need is
in
a
our
business.
machine which
of the niceties and nuances which
business
firms remained close to home site
invested
their
funds
almost
solely in domestic plant. For ex¬
ample, we have reached a point
where
there
are-
American
firms
in
tion
which
I
with
having
the
world-wide
Since
1939
ha9
This may lack
economist
or
of
fashion.
resiliency
these
It
a
good working
what
the
obstacles
investment
grown,
exports
funds
is
or
of
desir¬
a
free
market economy.
impossible to obtain
a
unani¬
opinion on what might cur¬
rently constitute a free market
and on the degree to
which governmental intervention
or
interference
could
justifiably
be exercised before the free
mar¬
ket economy would cease to exist.
To
attempt to draw the lines here
would
entail
an
extended
which time does not allow.
in
the present
context,
detour
With-
however,
held
and
to
be
inimical
inconsistent
to
free
a
with
market
economy.
mous
economy
or
patible with convertibility would
be
Needless to say, it would be al¬
most
competition
Specifically,
other
the
related
pedimenta
curtail
of
exporter
will
not
limit:
or
artificial
be
im¬
used
the
opportunity
to
compete
with others for the customer's fa¬
(4)
vor;
payment in
the
trader
type
any
of
'i:
that
gone
made
for
be
of
counted
less
the
from
by
than
The direct
or
the export
investor, whether old
shares these free market
new,
objectives
as
activities.
His main concern,
ever,
they touch
Continued
v.-..
of
pro¬
al¬
contradict the fact that the
exporter has found markets closed
all but closed against
or
by
governmental
him, that
edict
his
com¬
CREATING
petitors abroad have been granted
preferred
to
access
that he has been asked at the
Every industry is becoming increasingly
same
the
through his taxes in
rehabilitation and
strengthening
these
competitors.
same
earnings
blocked accounts,
frozen
building
a
have had limita¬
are
ferable, have been forced to utilize
cause
of
in the purchase
sources
replacement and
and
repair
to
liquidate
m
and
the capital elsewhere.
Other firms contemplating new
investment abroad, it is true, have
offered
more
favorable
inducement
in
to
treatment
locate
in
as
cooperation in translating
Pfe-.f
able
source
backed
by
for
a
a
an
right to remit earnings and,
relatively brief period,
even
to
withdraw
the
original
capital. The United States Gov¬
5rAvPfJfM
JP"
mt,
ernment, moreover, in effect has
this discrimination
countenanced
between
old
and
through
its
ECA-MSA-FOA
igv
investment
new
In¬
pjfep.
vestment Guarantee program. On
the other hand, new private for¬
>
eign investment projects have had
the disadvantage of being forced
to
to submit to
gc
r.0 ?t, /
foreign governmental
with a better than
"screening,"
try, if
•».
mm*?*
chance of being refused en¬
even
V.
XUQ
"
ijZEki"
battery of official tests and
run a
they
did not fit into the
"Plan" of the recipient country or
if they showed signs of becoming
competitors of local firms already
in existence.
These
only
are
ficulties
tered,; but they
strate what the
has
investor
his
has
few of the dif¬
a
and frustrations
efforts
been
encoun¬
demon¬
to
serve
foreign trader and
been
against in
expand abroad. He
to
0
up
the first,
among
p
M
never¬
theless, to concede the unavoidability of various restrictions and
the
as
for
need
controls
well
devices
emergency
slender
extension
because
directed against
perpetuation and
political reasons or
been
for
of
unwillingness
an
face realities. The
the
foreign
has
seized
antithesis
sum
one
trader
upon
of all
up
all
should prevail
There are,
r
defend
deliberate
their
to
to
His prime com¬
reserves.
plaint has
administered
external transactions
over
to
he
that
to
word which
and
investor
the
express
deplores and
he
believes
is "convertibility."
of
course, any num-
ber of definitions of convertibility,
some
relatively
simple,
some
products and
nationwide sales-service organization.
a
a
new
a
of the
after
are
by seeking
thoroughly depend¬
comprehensive variety of chemicals,
into profits provide
given
They have been assured
country.
industries
success
Cyanamid offers special advantages in helping
new values through
processes
instances
some
200
turning to American Cyanamid Company be¬
nical
move
been
than
chemistry. Well-directed research and efficient tech¬
their
operations
more
its customers create and maintain
parts,
have been restricted in
right
in
foundation for future
a
strong, progressive source of chemical supply. Many
tions imposed on the amounts trans¬
non-dollar
of
progress.
Manufacturers
in
aware
important creative role chemicals play in stimu¬
lating
Firms
with investments abroad have had
accumulated
VALUES
'markets, and
time to assist
of
NEW
30
«ocwFeu
NEW
tR
upon
his
how¬
is to have the right to trans-
the right to deliver the
public
recovery
trader
complete restoration
and
This growth does not
or
ac¬
convertibility.
the
that part
financed
agreed.
complishment of these aims would
as
despite
on
to receive
convertibility
simi¬
a
hindrance;
currency
Ite
subjected
or
Except as security considerations
might be a modifying element,
to
(1)
Freedom to
locate potential buyers; (2) free¬
dom of choice for the customer;
(3)
proceeds of the sale
transferability which prevents
both goods and services looks to
the day when exchange controls
and
without
(5) the opportunity to transfer the
after appropriate al¬
under
grams.
the
limit the area of
which are incom¬
merchandise
foreign trade and
have
even
lowance
in
that
which by intent unduly
mm1
MMfri
or
tribute to
a
both
trader
belief
advantages
be safe to conclude
arbitrarily
or
but
to
foreign
been
is
of
come
banker would in¬
troduce, but it is
statement
the
his
reflec¬
of
interests
responded to them in
ter
an
S. dollars at
vicissitudes than Job and
more
lar
other end."
U.
of
a
organiza¬
nothing
the
investor
has
out
the United States.
and
to
turn
convertibility is
associated
am
shipping virtually
from
number
a
feed with pounds, francs,
lire, any soft currency, and which
will
tion
few
execu¬
external
and
measures
ability and
After
you can
when
it would
the
luncheon conversation.
my
sell goods, when
bought many services but sold
few, when it depended on foreign
banking institutions to finance its
it
trade,
In general, the attitude of
foreign trader and investor
wants.
toward
had
restricted
to
mind per¬
haps best illustrates the exporter's
point of view
came
out of
a
Means to Business
trade,"
conditional.
and
which
one
57
on
page
5$
(
58
The Commercial and Financial Chronicle
(314)
get color television to an enlarged American
Currently the tax on color television sets will
to
Continued from page 56
more
the steel industry tQ ialinch a multi-billion
and Construction program in the
immediate postwar
As a result, capacity has
produce
audience.
panies in
modernization
dollar
climbed some 30 million ingot tons since
In 1954,
1945.
tran¬
sition with the removal of heavy pressures following
the end of the Korean hostility. Steel consumers found
themselves with heavy inventories which they drew
upon, reducing orders they might have placed with steel
mills.
Thus, consumption of steel in 1954 was greater
than production. During the April-August period of last
year, it is estimated that about 15% of the steel con¬
sumed
tl^,? steel industry experienced
out of inventories.
came
a
year of
Largely because of this,
declined to a point as low as 61.5% of
capacity. With the depletion of inventories, however,
operations picked up in the early fall and returned to a
healthy rate of more than 80%. This was accomplished
despite the fact direct military orders amounted to about
2.5% of all steel consumed during the year.
steel operations
During the past year labor relations continued harmo¬
niously. Contract negotiations with the United Steelworkers were speedily and equably settled in June. In an
effort to gain better understanding, through personal con¬
tact, between labor and management at the plant level,
the United Steelworkers' President, David J. McDonald,
and
continued
I
taken
us
a
started last year, which has
major production centers.
tour,
to all of U. S. Steel's
The .beginning of the year
iron
ore
from
U.
reach the
saw
the first shipment of
Fairless Works in Pennsylvania
recently-completed mining operation
Bolivar, Venezuela, Today, iron ore is flowing
Steel's
S.
at Cerro
new
from Cerro Bolivar at the annual rate of 5
million tons.
In
addition, U. S. Steel continued its pilot research op¬
erations of refining low-grade taconite to strengthen our
and, under the circum¬
but feel that it is most unfair to
penalize consanrfers. I think the government would do
well not -to try to harvest the field at least until indus¬
small
only
revenue
stances, I cannot hcip
try has completed sowing it.
Television attained new heights
than
more
and
for
demand
consumer
of service in 1954
stations
additional
90
went
into
receivers led to
million-plus boom in set sales. For RCA Victor, unit
production and sales of TV sets surpassed the top year
of 1950.
Engineering advances, which provided continuously
larger screen sizes in the six-year span since 1948, have
been parallel by production efficiencies providing lower
priced units without sacrifice of quality. In 1954, 95%
of RCA Victor TV sales Were of receivers of 21 inches
or
larger,
sets in
compared with the 96% average of 10-inch
Sets of 24 inches are increasing in popu¬
as
1948.
larity.
Opening of new television service areas and the trend
to multiple TV sets- in homes, will give added impetus
to sales in the years ahead. In fact, estimated retail sales
of black-and-white and color receivers during the next
five years is expected to exceed 33 million units, thus
exceeding by more than a million units sales during the
past five years.
During the past year, a trend of major importance
was
discerned in the increasing use of new electronic
products and services for industrial purposes. By yearend, sales to industry and government had reached a
total
of
half
than
more
in
those
communications
home entertainment.
and
planning.
1955.
ing industrial requirements. At present more than 100
new steels or new applications are under study.
An ex¬
ample of applying an existing production to a new use
is the rapidly-growing field of soft-drink canning. Last
year some 75,000 tons of tin plate went to this branch of
the beverage industry with an expectation that this
amount will be doubled in 1955.
Similarly, research is
under way for
the canning of whole milk
now
made pos¬
sible with newly discovered sterilization methods.
Last year U. S. Steel demonstrated a new alloy steel—
T-l, which has three times the strength of ordinary steel.
Possessing excellent welding qualities and high resist¬
ance to impact and abrasion, T-l is finding wide accept¬
ance in industry where such qualities are required.
An¬
other field rapidly developing is the use of vitreous
enameled sheets and stainless steel as
walls of multi-story
exterior
structures.
such
use
the
of
New Yorkers
■
a
material for the
buildings and other large
will see an example of
soon
for skyscraper construction with
the completion
Socony-Vacuum Building in the Grand Central
Station
area.
but
generated additional business, as a cus¬
tomer itself, for companies both large and small. During
the
the corporation purchased goods and services
from more than 50,000 different concerns, and, in turn,
served over 100,000 customers.
year
pressive growth in 1954 and showed
record
President, Radio
and
Corporation
of
America
improved products in virtually all lines of
My estimate
could
be
a
year
good
that
business.
ago was
for
tries
employing
of
usefulness
should
be
the
modern
scientific
Because of this
sales
outlook
HENRY
devices
and
broadening horizon
for
electronics
grows
FORD, II
A
The year 1955
probably will witness the keenest—and
consequently the healthiest—competition for the auto¬
mobile
business
in
few years to
a
nationwide color television service, with
duction should increase
Radio and television, even color
television, bear the
highest rate of Federal manufacturers' excise tax. Last
April 1, Congress cut excise taxes on articles ranging
from guns to household
television
appliances, but the taxes
were
continued
at
on
both
discriminatory
levels.
Many millions of dollars have gone into developing
color television, and it will cost
industry many millions
in industrial
fourth quarter
The
in
produc¬
has ex¬
recovery
tion
the
A. E. Forster
general expectations, and the
ceeded
outlook
first quarter seems
the
for
^
.
,
/,
highly favorable. Inasmuch as our own fortunes
linked so closely with that of the general prosperity
be
to
country,
of
the
as
well.
good
expect a
we
The 1955
year
for Hercules
' toutlook for virtually all the industries served
-r
"
.:
.
by Hercules appears to be favorable. Some of the im¬
portant consumers of our products are expected to equal
or exceed the peak
levels of 1953. Among these fields
output are rayon, major household appliances,
varnish, cement and paper. The one
industry served by Hercules for which the outlook is
not as favorable is coal, where substantial increases are
level, and
consumer
slightly,
a
We
have
just
pany's 51
to
likely
should be a sound,
it
sensational,
be
solid
It will reflect our population growth, increased
productivity, a gain in the standard of living, greater
consumer purchases of goods, and the high level of con¬
struction. While the outlook is almost uniformly favor¬
as
history,
believe
so
choice
a
year
the
a
as
tougher, leaner, harder
more
its history.
realization
and sell
more
to prosper and grow.
if it is
attitude
realistic
has
been
brought to bear on the problems that
have plagued anthracite these past
several
we
most
products,
of
1955
produce
must
This
years.
included excess
and
Henry Ford,
II
a
in¬
in the auto
from
With
it.
customer
unstable
Such problems have
production facilities
market
conditions,
complicated by the inroads of corncompetitive fuels. While it is still
too early to say that these problems
have been solved satisfactorily, it is
strongly in competition is
benefits
it
before
really competitive conditions
customer
enters
and Reading
Company
and Iron
efficiently
imaginatively than it has ever done
that's
stock mar¬
G. FOX
President, The Philadelphia
that
effectively than ever the thor¬
oughness with which, for almost a
decade, the men and women of Ford
Motor Company prepared for the re¬
we
able, the adverse effect of possible strikes or
should not be disregarded.
ket excesses
Anthracite
more
out of four
expenditures, from present indications, will rise to the
highest level in the history of the country.
v
While the increase in industrial output in 1955 is not
industry today than at probably any time in
It has achieved that condition because of the
years.
the
quarrying, petroleum, synthetic rubber, and con¬
expenditures, all of them important to the
chemical industry, is anticipated for 1955. Construction
struction
high
a
one tough
in which we set
unequaled in our com¬
reason
.
and
Coal
finished
1954 recorded
of
.
em¬
year
sales records
expected.
activity in passenger car production, mining
Greater
moderate upturn
purchasing
should edge upward.
To Ford
Motor Company,
good news in the making.
competitive
furniture, paint and
EDWARD
ployment should continue at
a
can
ago.
1954—the first full year of
industry since before the war—Ford
Sold more than 2,000,000 Ford, Lincoln and Mercury cars,
Ford trucks and tractors, or 13% more than in 1953.
This all-time sales record permitted the company to
increase its market penetration from 25.2% in 1953 to
our
acute as
fact that they are not as
they have been in the past two years.
.The industry, which has been in
overproduced position for a num¬
Edward G. Fox
of years, is adjusting itself to
meet today's market requirements.
; r
These changes in the number of producing units will
assist in stabilizing the industry and take it from a
an
ber
deficit position to a position of greater economic strength.
This means that the outlook for anthracite in 1955 is
improving.
And
should this improvement * continue
throughout the year the industry will enjoy a satisfac¬
tory return.
Perhaps one of the outstanding features in the indus¬
presently is the feeling of renewed confidence.
Producers and dealers alike are beginning to realize
once more that despite the decline in tonnages, anthra¬
try
cite is still
between
a
substantial business.
$350 million
The industry is doing
and $400 million
worth
of
busi¬
for
turning out the best product in its
more
than century-old history. Modern merchandising
and selling methods are making the consuming public
cognizant of the quality of that product. Moreover, the
Employment in Ford Motor Company plants contin¬
high through all of last year.
Our 1954 payroll
natural superiority of anthracite as a fuel of high carbon
content and inherent steady burning characteristics has
more
than 30%
in 1954.
Success in the auto market is not the sole reason
our
viewing 1954 with pride and 1955 with optimism.
ued
totaled
more
than
$950
million,
or
slightly less
than
week, with Ford hourly employes earning
at the average rate of almost $5,000 a year.
$19 million
steadily increasing demand for color sets.
probably will not exceed its
peak, the level of activity in the
current year is expected to rise 5
or 6%
above the level of last year.
1953
15 years.
Also, in the year ahead we foresee
in business generally.
National pro¬
competition in
demonstrated by RCA in 1954 and incorporated in pro¬
duction models of RCA Victor's 21-inch color sets will
contribute importantly to the transition over the next
stability should prevail.
While industrial production of the
nation
growth.
The record shows that in
particularly
In Hercules, we believe that the
physical quantity of our own sales
will reach an all-time peak in 1955.
At this moment it appears that price
not
President, Ford Motor Company
one
black-and-white
the second highest year on record
probably
high record in the physical volume
of production. With the expected recovery in the indus¬
trial activity, it is likely that the
production of chemicals and allied
products in 1955 will exceed the pre¬
vious high record year of 1953.
will go on to a new
indus¬
de¬
mand—and get—the top value for his money.
We know
the automobile buyer of 1955 will be hard to please,
but we believe we offer the kind of products he wants.
Since the end of government output restrictions in
1953, we have increased our share of the auto market
steadily.
Today, about one of every three new cars on
American highways is a Ford product, compared with
television
Frank M. Foisom
receivers, TV transmitting equipment, radio sets, "Victrola"
phonographs and records, also industrial TV.
Development of color television into its commercial
phase in 1955 wi21 move ahead. Advances in color TV
and
expected
steadily brighter.
wide-range
challenges of the buyers' market.
has been a splendid year for
RCA, with sales of products and
services attaining an all-time high
volume, of approximately $930 mil¬
lion.
The electronics industry as a
whole
continued
its
phenomenal
growth, with sales of more than $10
billion, which is about 600% greater
than those eight years ago.
radio
these
technical advances.
One
It
a
are
try, at its present rapid rate, is highly significant. The
record of progress shows that the
increasing usage of
electronic products and services represent a
strong and
stimulating factor in the growth possibilities of indus¬
because
new
in
an
dustry.
that heeded the changing trends and
Volume
rise of nearly 20%
During 1955, record sales
additional 15%.
v
Growth of the radio-television and electronics
turn
months.
12
This most certainly has proved true
for the companies in the industry
good
im¬
ready for the year at hand. Dur¬
ing 1955 we intend to demonstrate
past year—should spark an outstanding sales volume in
1954
a
its
are
radio, TV and electronics—coupled with continued vigor
in merchandising that proved so successful during the
the next
sales.
to increase
With
FRANK M. FOLSOM
New
phonograph record industry continued
power
Again, U. S. Steel not only reached a wide field of
customers
The year 1954 was
for the chemical industry, and the coming year
of rising
The
in
FORSTER
ALBERT E.
President, Hercules Powder Company
erated
Iron ore position in the Upper Great Lakes region. Our
geologists continued a world-wide search for new sources
of raw materials as part of the corporation's long-range
phase of the Corporation's continuing program to de¬
velop new steels and new uses for steels for ever-chang¬
nation's future and our own.
are
;
More electronic equipment was in use in a greater
number of different fields than ever-before. The accel¬
"electronizing" of such diverse areas as manu¬
facturing, inventory control, military equipment, food
protection, medicine, scientific research and home enter¬
tainment can be expected to continue
impressively in
During 1955 U. S. Steel's research center on the out¬
skirts of Pittsburgh will be completed in an important
this program in 1954 and import¬
projects will be completed in the year ahead.
We view our expansion program as more than an
investment in buildings and machines and equipment.
We think of it as solid evidence of our faith in both the
progress was maae on
as
operation
the seven-
Thursday, January 20, 1955
.
ant
"j
/
.
A
and
good
a
year
also was had by the company's car, truck
tractor
job by
a
dealers, who were assisted in their selling
growing preference for Ford products.
Company anticipate^ this
growing preference almost 10 years ago, wheiTit em¬
barked on a $1.6 billion expansion and modernization
Fortunately,
Ford
Motor
ness
a
year.
It is
been
considerably enhanced by the extensive develop¬
Today, the widest
variety of these automatic units make available auto¬
ment of automatic heating equipment.
matic anthracite to
matic
anthracite
lower in cost than any
lower than the
Meanwhile,
at low cost. In fact, auto¬
competitive standpoint — is
other automatic heat. It is even
consumers
from
a
heat from
the
hand-operated systems.
industry
continues to make good
strides towards its goal of expanding its industrial fuel
-
program
affecting all key company operations.
Much
-Continued
on
page
60
Number 5396
Volume 181
.
.
.
The Commercial and Financial Chronicle
(315)
Continued
What
from
effort to achieve economy in gov¬
nessmen
ernmental
57
page
cused
tain
Convertibility
centives to
earnings
and
as
he
deems advisable,
similar right with
as
have
to
be
little of his net
or
a
to
which
cision
commercial
The
has
de¬
centered
success
been
tudes
countries
from within.
come
by
a
of
Convertibility
now
has
been,
views
and
held
single,
though,
the
most
By
ex¬
business
but
on
and
much
less
large,
take
groups
a /
intense
other
similar,
.position
convertibility. Individual busi¬
energies
domestic
or
are
fo¬
on
tne
completely
market
may
at
transactions and to trace step-by-
step
the
implications
sectors.
I
would,
tent
which
represents
views
of
we
Lave
the
opinion.
cursory
come
what
themselves
to
ber
presumed
was
import only to
and
happened
a
when
day
abroad
a
be
of
few denizens of
State
Streets
bureaucrats
in
and
to
business.
to make
be
no
need, how¬
missionary speech
on
foreign trade and its impor¬
tance to the economy before this
group.
It would be equally pre¬
ever,
sumptuous,
suming;
as
to
a
well
dwell
time
as
on
con¬
chain
the
effects of changes in our external
with
the
1954)
as
con¬
one
quotation
the
combined
foreign
traders
expressed (Novem¬
Final Declara¬
in
the
tion
of the Forty-First National
Foreign Trade Convention:
Washington,
foreign trade still is regarded by
many as a stepchild of domestic
There should
myself
long
Although
way since
various
to
therefore,
best, however, have only the most
atti¬
convertibility
the
on
whose
almost
casual,
some
to
up
toward
nessmen.
to
from
clearly concerned, group of busi¬
porters and investors as groups.
Actually; certain- exporters and
certain investors in their dealings
with individual
Effects
Attention
together.
reference
cannot
nation
any
on
ra
requires and which currency con¬
trols hamper, if not rule out al¬
The
sound
local
Wall
the
operations abroad he seeks
flexibility of movement and
A
currency
convertible
imposed
without: it must
liquidation. In his
or
the in¬
preserve
thrift, investment and
respect to capital holdings in the
event of sale
credit
and
productivity.
greater
and
much
as
fiscal
balanced
policies, and
Means to Business
fer
expenditures, to main¬
"Just
of
what
foreign
to
mean
does
trade
high
a
and
level
investment
the
the
national
and,
economy,
consequence,
commensurately
larger domestic market for what
they produce. It means a lower¬
ing of their costs of production*
through
the
economies* which,
increased volume makes possible.
It means, more
availability
of
the
products
materials
American, company
engaged in the production or dis¬
open
tribution
these
greater
a
wider
a
essential
operations, and
acquire
directly,
and
raw
to
variety
and
other
their
means
services
States?
,
ing
of
useful
here
in
which
the
even
business
a
of
and
United
to
not
are
the business
importing,
or
goods
in
.Tt means,
companies
selves
of
aireauy
commodity
on
those
them¬
export¬
higher level
activity
market, at lower prices. It
a
lessening of their costs
distribution
of
arising from the
widespread and economical
more
that
use
is
made
other
riers,
its
and
of
nation's
common
banking,
Continued
throughout
the
of
railroads and
on
page
account.
prescribed list of products, freed
restrictions, the
exporter in effect has thus par¬
tially achieved his five aims, even
though there may remain a few
from quantitative
minor formalities which either he
the
must
customer
satisfy.
Traders
generally have welcomed
trend
toward
convertibility
the
through
liberalization of
gradual
import controls, although at.times
suspicious that goods so privileged
have been carefully selected with
an
are
to picking only those which
noncompetitive, of limited ap¬
eye
peal,
such absolute essen¬
of
or
they already were being
licensed freely. - Administratively,
there also has been an easement
tiality
in the remittance of
earnings from
investments, but the
been
less
noticeable
effect
has
since
-
the
privilege of transfer normally has
been granted to current profits,
although subject in some instances
to a percentage ceiling.
• <
>
In
detailing
the ; objectives,
however,: two of the most sig-r
factors
nificant
ted
-
have
been- omit¬
implied
vaguely
only
or
in
passing. -The first is that^ con¬
vertibility, if it is to have real
meaning, must be established as
a
-right, not merely as an admin¬
In
concession.
hedged-in
istrative,
other
there
words,
full-fledged,
change market.
a
must
be
functioning ex¬
The second con¬
convertibility
a "perma¬
nent" fixture to be defended and
that
is
sideration
be 'regarded
must
no
an
for
anxious
is
one
as
on-again, offexercise. Surely,
supported, not
again type of
a
repeat
of the 1947 experi¬
performance
of the
From the standpoint
ence.
trader, investor and
an .in-and-out,
shifting
foreign
banker,
policy is far more of a deterrent,
far more to be feared, and even
objectionable than the
of
moderate
controls
over
external transfers.
For example, any firm weigh¬
far
more
retention
investment project must
It is, therefore,
less
likely to be impressed by
convertibility of the moment if
there is a strong possibility that
tomorrow convertibility will per¬
ing
an
think long range.
emptorily
are
commercial
enough
government policies.
trader may be prone to
idealize convertibility or to exag¬
eign
the
gerate
benefits
not
to
mistake
immediate
derived,
be
to him is
manifestation of
slovency and of
he
does
the ex¬
internal
integrity in fiscal
and monetary affairs.
comes
personal
it for an abstraction.
Convertibility
ternal
incumbent
on our
on
"A constant search for the most efficient
dures is
a year...
investment!"
an
accounting
important part of our business.
It thus be¬
any
other
which aspires to a con¬
and the result¬
ant advantages to accept in full
faith and
in advance the obli¬
efficiency,
dends. Nationals
of 89%
annually
we
now save us
on our
$96,000 every year-a return
JOBS HANDLED:
In your
Writing all disbursements
proce¬
invested $109,000 in National
Accounting Machines. They have returned amazing divi¬
machines will pay
Returned check reports
with the money
Reporting premium renewals
continue savings as
Bank
deposits
Your
Agents earnings records
investment.
ating costs helps us assure safe, low cost insurance and
maintain our position of 'insur¬
ing more automobiles than any
company in the world.'"
President
State Farm Mutual Automobile Insurance
Company
save
Reports of financed agents
Social
business, too, National
for themselves
they
nearby National
—
will be
Security reports
then-
man
will
you can
and why your operators
happier.
-r»Ao^HA*K
*
save,
annual profit.
gladly show how much
Liability reports
"Careful attention to such administrative details and oper¬
country
vertible
annually
$96,000
-STATE FARM INSURANCE COMPANIES/ Bloomington, lllino«*
"First in Automobile Insurance"
"To obtain this
occasion the for¬
on
return 89%
save us
to
brought about by the vagaries of
Although
*\
uncer¬
be met in
the
ordinary
course
of events
without
the addition of others
risks
and
tainties
'
Machines
There
abandoned.
be
G/fyaUcnalAccounting
u. £
:ir#f. 6>r<
State Farm Mutual Automobile
Insurance Co.
Insurance
♦
State Farm
Company
Fire and Casualty
•
Life
State Farm
Company
currency
gations
and - disciplines
which
convertibility imposes. More spe¬
cifically,'
this
means
a
resolute
THE
RETSIGERHSACCOMPANY, datton
NATIONAL
949 omcis
94
jwmc mAoms
owto
in
*
car¬
insur-
Within the given market and the
or
own
opportunity to
products,
in
the
an
conditions.
To this
extent there exists a type of bi¬
lateral convertibility or transfer¬
ability
in
a
these
enjoy
59
iffttfrct*
61
The Commercial and Financial Chronicle
(316)
■60
Continued
jrom
employment rolls sharply in 1955, it is a highly promis¬
58
page
ing factor for future years.
and Iron
Company, for example, now is supplying nearly a score
of industries a tonnage that amounts to nearly 40 h of
its entire output.
Our progress in the industrial market
in recent years offers a sound warrant for the convic¬
tion that the industry can steadily broaden its use in
and Reading Coal
The Philadelphia
market.
these area^.
For the longer term, ne\v
,,
.
,
non-fuel uses for anthracite
In recent years the industry has had
underway a long-range experimental and research pro¬
gram. Its objective is to develop broader uses and ulti¬
being pursued.
are
would
It
although probably
deposits should increase, especially time deposits; bank
clearings should be higher, loan volume increased; and
Beyond that depends largely on the wisdom and re¬
straint with which our major industrial managements,
the
government, money managers, labor leaders, and we
meet the problems and changing condi¬
tions which will continue to confront us from day to day.
individuals
as
greatest potential. National, state and privatelyresearch agencies are cooperating in the at¬
tainment of this goal. In addition, the Philadelphia and
PAUL
cite's
number of
to appraise
with any degree of accuracy the ultimate value of all
this work, there is sufficient indication at present to
promotion.
While many problems still confront the industry,
none is impossible of solution, and most are of the type
that have been solved in other industries.
It is my
conviction that anthracite, likewise, will solve its prob¬
lems and in doing so, the possibilities of the industry
will be more fully realized than ever before.
continued aggressive
its
■warrant
KENNETH FULLER
C.
Passaic-Bergen County area
1954 with much more successful re¬
sults than had been thought possible a year ago, or in
concluded the year
throughout most of the year. Total volume has been
high in most lines and profits favor¬
able
even
though profit margins
have been lower and backlogs re¬
duced.
Retail sales showed a sur¬
fact
prising surge in December,
the total volume ior most
above
only slightly
or
1953.
levels of
bringing
stores well
below peak
^
.
of the national economic
for 1955 shows an almost
A survey
outlook
prediction for a contin¬
uation of the improvement in busi¬
ness
which we have
experienced
unanimous
these
months.
past
In
fact,
there
have been few times when so many
economic indices pointed so
clearly to fair weather as at present,
c. Kenneth Fuller
it should be realized, however, that
at best these indices can only point out trends and do
not tell how far the trends will go nor how long they,
will last. Furthermore, there are some unfavorable fac¬
tors in the picture which should not be overlooked in
our
present state of optimism.
Sensitive commodity
prices have been moderately weak, commercial failures
continue high, unemployment is well above minimum
limits, farm income is reduced, competition is very keen
and there are few backlogs of pentup demands to be
the
of
tilled.
;v>;:•>
doesn't
There
to be
seem
;■
'
any
sound basis, therefore,
a strong business recovery and we are more likely
experience overall moderate improvement with fairly
wide fluctuations prevailing in some industries and in
marginal units within industries.
for
to
A
of local industry and trade shows general
following closely the national pattern and
survey
sentiment
there
is
good evidence
service
our
that
will be at
area
a
industrial activity within
relatively high level for
The
major uncertainty is in the textile field where
years of depressed conditions we are wit¬
nessing a substantial recovery with much greater optim¬
ism throughout the trade for 1955. Productive capacity
is still large and profit margins low, but mergers and
liquidations are providing a partial remedy for this
after three
condition.
The
machine
tool
industry, airplane engines, elec¬
tronics, television, electrical equipment, industrial rub¬
ber, cables, metal containers and paper are operating
almost uniformly at high levels with an improved back¬
log of orders and a favorable outlook.
The
construction
industry has had another highly
especially in residentialbuilding with a
good volume of diversified contracts for the coming year.
Active building of the big shopping centers in Bergen
County will probably start in 1955 and provide an added
boost to the already expanded conditions of this indus¬
try. It is quite possible that we may be temporarily
overstepping ourselves in these fields, in building for
active
the
year,
potential demands
much thought
maining 50's.
as
:
of
the
60's
without
giving too
to what is going to happen in the re¬
.
Even though the local industrial outlook is
very
favor¬
able, unemployment is relatively high and may remain
so
in view of the greater
efficiency of operations of
recent years.
or
bank
to
This does not indicate reduced retail sales
our
activity, however,
as evidenced last year when
surprise retail sales exceeded those of 1953 in
spite of a 7% unemployment roll, continued increase in
savings, and no significant increase in the use of credit.
This
seems to indicate that in
spite of greater unemploy¬
ment, the total number of employed remained high, and
with average
was
wages
increased,
produced and there
was an
spendable income
increased willingness to
more
buy. At the moment, this condition
tinued for
concerns
new
some
seems likely to con¬
Furthermore, several national
are in the process of
building,
and although it may not affect
months.
have built, or
plants in the
area
In
its
overall
own
billion
$10
trenched
in
annually, and electronics is strongly en¬
second place among the consumer durables
industries.
Relating to the various categories
of production within the electronics
industry, sales of monochrome tele¬
vision receivers should
but above
1954
Added
television
and
improved products mounts. This should spotlight
to replace many of the out-of-date machine
tools in use by the more productive new machines now
the
because
the
rate
of
available.
,
the
of
Much
Both
major
committed to
I
present
been
artifically
in
parties
are
political
continuation of these
\
V
'
a
order
to keep' the eCbpresent level or
at the
curve
little higher.
a
believe
therefore
will
1955
see
following:
inflation.
progress
field.
mobile radio communication, micro-wave
relay system, and other public safety and service equip¬
ment phase of the industry will be about the same in
(4) Higher wages.
(5) Slightly larger incomes
considerably higher expenses.
(6) Slightly rising deposits.
(7) Interest rates about the
V
possibly
or
(8)
a
and
W. W. Gasser, Sr.
same
tendency to higher levels.
A good year for steel.
(9) A big
highways.
year
for
construction
of
toll
roads
and
-
(10) A continued trend toward Socialism and enlarge¬
ment of Federal controls.
LORING L. GELRACH
President,
With
Central National Bank/ Cleveland,
Ohio
business
expanding over a broad base—auto¬
mobile production, steel operations and construction all
rising—and with employment and personal incomes
increasing—the outlook for business in 1955 is promising.
The recent recovery in business is
outgrowth
an
of
favorable
many
factors, the most important of which
1955.
In
military electronics the total volume for 1955 will
reduced on an industry basis. However,
for continued research and development of a
high order in military electronics is a prime factor in
the security of the nation and can be expected to be
sustained,.
The electronics industry has thrived through the ob¬
solescence of "today's products" and through diversifi¬
cation. This will be no less true in 1955 than in previous
years.
Industry as a whole is moving into an era of
automation.
Leadership and experimentation towards
this end is being provided by the electronics industry
which is both a supplier and a user in automation.
are:
somewhat
1955
a
of
of
Government
in
tion
A change
or
accumulation.
(3) The easing of credit terms on
FHA and VA mortgages as a spur
to residential building,
* .»
(4) The introduction.of new models
throughout the automobile industry
as
a
stimulus to sales.
(5) The growth in confidence that
business is improving.
(6) Other factors such
opens, the machine tool industry can look
good job done for the national defense and
task
ending
spending.
in policy of inven¬
tory liquidation to one of stabiliza¬
(2)
FREDERICK V. GEIER
on
The
cutbacks
Lorinf L. Getbacb
President, The Cincinnati Milling Machine Co.
helping to modernize America's
productive equipment.
Again in the Korea-defense emer¬
gency, the industry demonstrated its
resourcefulness in quadrupling out¬
put from $305 million in 1950 to
$1,192 million in 1953. Plant expan¬
sion, widespread subcontracting, and
long hours all contributed to this
peak, well above the industry's own
capacity: With 1954 shipments around
$880 million, the industry completed
its emergency defense job and is
$caling down operations to normal
peacetime demand.
Many machine tool using indus¬
■'
,
(1)
the need
As
has
economy
(1) Further Federal deficit spend¬
ing.
(2) 'A
continuation
of
higher
taxes, both Federal and local.
(3) A slight trend toward further
receiver
The two-way
back
GASSER, Sr.
by Federal deficit spending, Federal control of
interest rates and the quantity of money in circulation.
the
marketing is intimately in¬
volved with questions of picture tube
Paul V.Galvin
costs, the simplification of chasis en¬
gineering and the amount, type and
regularity of color programming. In general terms the
color art will continue its evolution during 1955 grow¬
ing steadily and naturally like a healthy young baby.
Color is now as exciting a horizon for the next few
years as the prospect of a 21-inch black and white pic¬
ture was back in 1947 when most people who had tele¬
vision were looking at a 7-inch picture.
Consumer radio sales for the home during 1955 should
approximate the 6,500,000 units sqld in 1954 exclusive of
car radio. The latter product will enjoy an increase over
1954 benefiting from the new model automobile intro¬
ductions and the spirited competition throughout the
be
W.
Board, Gary National Bank, Gary, Ind.
created
6,-
of color
automotive
need
even
quantities of4COlor television
production and sales in 1955 are
without great significance at
this
time
peacetime
over the
Looking further ahead, the pace of technical progress
quicken as competitive pressure for lower costs
nomic
1953.
the
to
be about
definite gain
a
will
policies
slight decrease from
a
it should, show
business, and
W.
business the electronics industry will hold
Gross volume now approaches
600,000 units,
compare unfavorably with the ex¬
volumes of the past several years.
levels of pre-Korea years.
Chairman of
in 1955 with 1954.
forward to its
the next six months at least.
Obviously
defense
But 1955 should be the industry's best year for
GALVIN
of exact
-
Business in the Southern
V.
category will be a modest number of
color television receivers. Forecasts
President, County Bank & Trust Company,
Paterson, New Jersey
tools will
ceptional
President, Motorola Inc.
supported
Reading has launched on its own initiative a
research projects. While it is much too early
time, with deliveries largely in 1956 and later.
The 1955 peacetime orders and shipments of machine
credit active for the next several months.
consumer
In this direction lies anthra¬
mately conserve anthracite.
therefore, that retail sales of both
goods should be in good volume,
with lower profit margins; bank
appear,
and durable
consumer
Thursday, January 20, 1955
...
tinuance of the policy of "Credit
expansion of the money supply.
Ease,"
The result of these favorable factors
bound
over
in
a
The
industrial production to
the
as
was
a
con¬
further
and
rapid
re¬
the highest level in
year.
business outlook for
of
crease
around
2%
in
1955
Gross
is for
a
National
moderate
Product
in¬
and
4% in industrial production.
-
The recovery has acquired enough momentum and is
broad enough in scope to maintain business at present
at slightly higher levels throughout the first half and
possibly the entire year.
or
present to
in demand for new homes is expected to
throughout most, if not all, of the year in keep¬
ing with the willingness of people to go into debt during
periods of rising incomes.
Growing confidence in the outlook for business is
expected to stabilize business spending on plant and
equipment around present levels.
'
Anticipated higher labor costs and threatening strikes
will accelerate production in the early months of the
farm
year.
tries have adequate capacity for the
Frederick V. Geier
produce the motor cars,
machinery, locomotives, house¬
hold appliances, etc., they expect to
Increase
continue
,
,
Some moderate increase in inventories is, there¬
Increases in inventories of consumer
fore, anticipated.
sell in 1955.
goods
centering
dustrial
Recognizing this, machine tool builders are
their efforts on stimulating replacement of
obsolescent equipment by more productive new ma¬
chines.
Months ago, our company led off the selling
effort with 3-D movies,
a
traveling coach bringing
demonstration machines right to the customer's door,
a
Technicolor cartoon on the high cost of operating
obsolete machines, plant visitations, and the unveiling
of new model machines.
Next September, the whole
industry will stage a great Exhibition * in Chicago to
demonstrate the advantages of up-to-date, cost-cutting
machine tools. Customers are increasingly productioncost conscious^ and the September Show should stimulate
fourth-quarter orders, and shipments a few months
later.
"
.
Although the big backlog of defense orders for ma¬
chine tools has been worked off, the mobilization base
is not complete. The defense services are expected to
place orders for about $140 million of "elephant" and
special machines which require very long in-process
bring about a moderately lower rate of in¬
production throughout the second half — for
example, automobile production.
may
Inflation will not be
a
serious threat to business this
Cost of living is not expected to change appre¬
ciably* Deficit financing by U. S. Treasury through the
banks, and increased borrowing: by corporations and
individuals, should increase the money supply by about
year.
3%.
No appreciable change in interest rates or in the
policy of credit ease is anticipated.
This will be a year of new higns for personal
incomes,
dividend payments, number of people gainfully em¬
ployed, and total outlays for construction. Operating
costs will be higher^ competition throughout
industry
very keen, with net earnings of the larger corporations
up moderately.
Nineteen fifty-five will be a good year—second best
in volume of
nation.
goods and services in the history of the
...
Continued
on
page
62
Volume 181
Number 5396
Continued
What
jrom
.
.
ucts may
59
page
Financial Chronicle
The Corrnnercial and
.
exceed the suggested 5%,
while the stimulation to the econ¬
omy as
Convertibility
more
whole could have even
striking
effects.
Finally,
a
the
establishment
ity
Means to Business
makes possible
impediments
convertibil¬
of
sential
quality of life, and marks
growth, change, flexi¬
bility, and adaptation to changing
of
better
market,
those
a
in
segments
is rigidity.
between
"It
in
in short,
business
that
the
Probably
effect
of
Obviously,
realizes
it
enterpriser
whether
the
not,
or
who
has
trade
vital
a
and
comitant
In
this
element of flexi¬
connection
one
through
removal
of
the
con¬
burdensome
discriminatory
ural"
of
telling comments I have
recently made by
what
he
may
not be at all
policies,
through the development of "nat¬
an
of
field
affairs
the
patterns
of
integration
of
controls,
through
trade,
low
with
vast
that his
al¬
to
remarks
one country may
applicable to a neigh¬
that there is a highly
and
complex interdependence
But
sues.
elements
these
which
is¬
exactly
are
of
the
exchange,
he
pany
address: "Freedom is
an
es¬
and
toration of
British businessman, Sir Edwin
Herbert, in the course of a com¬
through
flexibility
force.
the
as a
a
daily and practical ba¬
to do
so
even
questions
theme
highly
relevant
here
must
be
left
be
and
on
They
tions
include
as:
such
Floating
vital
versus
tunately,
our
ternational
trade
role of gold?
cannot
policies?
tioned
the
on
dollar
the
on
as
supply?
The
place
Continued
on
time.
the
To describe the effects
vertibility
have
not
of
-
than to
would
is
not
of
well
as
con¬
should
or
much easier matter
a
sketch the
consequences.
'
possible
many
'<•/'
.
.
-
*
For
"
://'
thing, convertibility is
one
'
not the gateway to the "big rock
candy mountain." The notion has
been,
spread, and is held even by
foreign traders, that once
some
convertibility is re-established
immediate
stantial
U.
to
dollar
and
could
service
such
to
be
./;/
sub¬
exports.
'
..
to
there
occur.
.
presumably
unless the export
within! .reasonable
proportions and is fairly well dis¬
be, but
is kept
gain
tributed
may
by
changes,
tive to such
pressure
The only ;aiternaresult would
a
to be correction
seem
*
but
of
5
through exchange
fluctuations.
tion
/" :
-
The
risk
of
does
the
not
convertibility
-
a
big increase must be admitted to
exist,
.
for the exconvertibility 'will
and
fail.
falter and
the :
areas, *
'
too great
prove
rate
.
dis¬
greater
convertibility than for
advance
will
of
area
no
development
a
Some
-
.
.
an
proportions will be given
S.
There
lift
upward
"•
,V
.
;
.
...
j':-V
restora-
.
presuppose //
V
-
general
stability in total ^trans/T/,/
actions while changes are taking
place within the commodity arrd
^ •
country patterns?
Assuming, however,1 continua¬
or
a
slight improvement of
tion
the current dollar
a
supply position,
* *
5% increase in the total amount
of U. S. commercial
exports probbe supportable. Im¬
ably would
ports into
the
unlikely
change
of
United
show
to
purely
as
States
are
commands
marked
any
consequence
a
an
army
convertibility,
be
may
It
in
A
presumably will not at
show
is,
although there
adjustments.
In¬
price
vestments
once
upward
any
fact,
response.
possible
even
that
temporarily until the outlook
be
determined
with
Export and
ance/
fairer
assur-
transactions might be expected to
behave in about the
merchandise,
same
subject
tinued
outlays
on
way
the
pro¬
not
con¬
for
such
railroad
on
•:
foregoing
appear
to
rather dismal picture of *
a
business
may
prospects
justification
and
weak
a
for
undertaking all
convertibility.
The
explanation is threefold. First, the
risks
of
are
longer-run
as
transmitted
ent
ated
realized
the
crews
and
policies begin
the
certain firms
or
as
the
to
In the retail store, still
scores
of
orders for
and
regiments of workers
grade the
divide
carcasses,
them
into
another
in—
move
hides,
weigh them,
wholesale
Beef"
For
process
pharmaceuticals,
cuts,
and
and oils,
fats
stock
feeds—as
industry
can
benefit from the
originates
example, if
you
have
involving either food
food products,
commands still
army—the people who tan
who
of chem¬
Company.
others cut,
lem
"General
squads, platoons
array
products made
with "General Beef" at Armour and
money.
different skills will
dress the beef. New
imposing
industrial
chain of command that
consumer.
with many
as an
All
re¬
sell the meat to the
display and
of
well
ical and
by Armour and Company.
of specialists
it, deliver it and collect the
his way.
packing plant,
cars or
average
perhaps
our
development facilities
you.
Do
as
others
a
prob¬
or
non¬
research
can
help
have done
so
successfully: Ask Armour.
ARMOUR AND COMPANY
the
are
General Offices
Chicago 9, Illinois
•
associ¬
bear fruit.
gains derived by
categories of prod¬
an
distribute the meat, take
speed "General Beef"
throughout the differ¬
economies
Secondly,
in
effects
Another corps
journey to
expectations outlined or postu¬
lated relate only to the short-run,
and the real advantages of con¬
vertibility
refrigerator
1,000 miles to market.
into action
yards. Stock handlers and
In the
men
present
the
the stock
pur¬
poses.
The
"
load them into
we
trucks—ship them
the cattle start their
as
as
to
are
viso that restrictions
"marches" when
.
Truck drivers swing
can
import service
vast army
buy cattle
the rate of flow might slow down '
..
GENERAL BEEF
-
Beef, Lamb, Veal and Pork
icals
•
Coated Abrasives
•
•
Smoked Meats
Curled Hair
•
•
Frosted Meats
Glycerine
•
•
Canned Foods
•
Sausage
Industrial and Household Soaps
•
in¬
The social framework? Com-
mar¬
form
and
envisaged
of
tal?
Unfor¬
circumstances
The
vestments? The treatment of capi¬
pluck
type
convertibility
ex¬
sis. One cannot hope in few words
out a
single, simple answer. Obviously,
any conclusion has
to be condi¬
we
ques¬
fixed
The gold price? The
foreign
own
unre¬
change rates? The role and desir¬
ability of stabilization funds? In¬
foreign
investment?
the
to
solved.
Just
what,
then,
would
the
quantitative effects of converti¬
bility
when
survey to a single issue, such a3
convertibility. As a result many
investment."
trade
en¬
attempt is made to confine the
him of all the shifts and changes,
t
.
attitude
to portray or assess the impact on
res¬
guiding
,
an
and
his reaction to them.
or
the "businessman
trading and operating abroad must
on
view
It is difficult
respect to
bor,
by face
economies
too
are
otherwise,
come across was
a
in
countered,
himself
in
stake
important
most
the
the conclu¬
escape
much
working with
be provided
private
confines
exclusively to the domestic
ket
the
in
economic
to say must be
highly con¬
jectural, that the variables he is
pulse
of
period
of
the most
growth and expansion is afforded
to
all American business enter¬
prises.
that
through the im¬
convertibility gives to the
adoption of more rational eco¬
have
which
the
and
policies, and all the subtle differ¬
seek
The ultimate gains and benefits
and
bility.
that is done must mean,
better
opportunity
for
a
sion
convertibility from the
commercial-financial angle is that
in¬
as
surely cannot
it introduces
any
volume
total
We have to choose
dealing
international
nomic
production.
means,
crease
.
growth with its inevitable
will
trade
in
during
inconvertibility.
whose prosperity is vi¬
tally dependent upon exports for
the disposal of a substantial
part
their
.
Anyone
of
61
all the varying environments
Unresolved Questions
ences
The mark of death
distortions
an
developed
the
economy
of
.
Some
growing pains on the one hand or
rigor mortis on the other hand."
specifi¬
of
XV
are
attack on
to trade and
investment, and through the pric¬
ing mechanism should correct the
ance,
warehousing,
and
other
servicing facilities generally.
It
cally,
life
circumstances.
other
means
(317)
•
Butter, Eggs, Cheese and Poultry
Pharmaceuticals
•
•
Lard and Shortenings • Adhes'rves • Ammonia • Chem¬
Veterinary Medicines • Leather • Wool • Fertilizer • Animal Feed ingredients
page
63
62
The Commercial and Financial Chronicle
(318)
Continued, from page
CRAWFORD
60
President, The F. E. Myers & Bro.
For the
Co.
the
appears
While
further
increased.
of
water lines
city
this
of
fiome
houses
mains
to
we
than
faster
the
lines
the
the
euch
it
heaters,
automatic
chines,
water
are
softeners and other
increasing the usage of
many
instances this
In
those
the
large
very
tinuing at the rate
and
have
we
of
staff
its
beer
all-time
year
by
I
I
high in annual sales for the
that
these
are
the
exhibitors
kind
and
of
year
will be
that
one
is
the
kind
In
addition
to
we
will
a
Technicolor
Hay ward and Pedro
list
of
top
future
continued
sales
in
can
the
have
an
brewing
tirely in Spain in February, while in June cameras roll
in England on "The Two-Headed Spy,".with two box
office names to be announced.
Nat Holt Productions
have just completed "Seven Bad Men" while a second
production, as yet untitled, is being prepared for early
1955. Already completed by Sol Lesser Productions is
"Tarzan's - Hidden Treasure," with the new Tarzan,
Gordon Scott, to be followed within the next .few weeks
by another Lesser film for RKO release.
GURLEY
President* Santa Fe Railway
*
'
Although the Santa Fe Railway System will conclude
the year 1954 with a lower revenue return than that of.
1953, the year as a whole has been a good one by most,
standards of comparison, and indications are'that we
I
probably can look forward to a good,
year in 1955 with a moderate opti¬
mism. Of. course, our traffic has been
affected by the general business ac¬
tivity throughout the country* but
there have also been relatively local
conditions affecting our revenue re¬
An
market
practically
correct in
the
changing
important influence on
industry.
to encourage credit expansion and
activity. It remains to be seen what
course will develop in 1955.
.
/'
FRED G.
j
Cur population .continues
are
as
.
its
years.
bull
so
turns.
A continuation of drouth
ditions in
Kansas.
parts of Texas, Oklahoma,
Newv Mexico and Colorado
has had
an
.
birth rate in the
depression qra, now is the smallest in
during the next five
*
mencing
should grdw
years
in
1960,
however,
when, the
movement
time, antf
some
con¬
effect not only upon the
of
agricultural
products
from those states, but to a degree on
the. movement of other commodities.
slpwty. Com- '
post-depression*
will become more intense this year than it was in 1954.
Major national brands and strongTegional or locai brands
It is good to be able to report that
during the past few weeks our cafloa'dings are materially better than
Fred G. Gurley
a. corresponding period a year ago;
Much of this better showipg is because of the splendid^
sorghum grain crop in Tex^s, but the general list of com¬
modities is also showing improvement.
The past year has seen many outstanding develop¬
ments on; the Santa Fe.
We have embarked on con¬
will
struction of
babies
become
will swell
in the
of
age,
this segment
considerably and reflect in
consumption of beer and ale;
Inasmuch
*-•
of the
a
population
decided increase
/.
:
<
-
,
the
industry will still be considerably
overproduced in 1955, competition among the brewers
1
use
as
every means
possible to increase sales volume—
at the expense, naturally,
.
of competition.
important role.
Falstaff's management
tive
-
battle
in
1
»
rated
advertising several
years
ning
as
the
as
.
charted
much
or
future.
possibly
This
more
for the present
carefully .planned
advertising program
reached
a
as
well
carefully
and
peak
new
of
effectiveness during 1954 with substantial sales increases.
During 1955, Falstaff advertising, improved where
essary
nec¬
to meet competition, will continue this plan which
dustry sales should show
am
optimistic
that
a
While I feel that in¬
small increase
Falstaff
sales
gains
over
1954, I
should
about
parallel those of last year.
There is; of course,
very
one
other factor which plays
important part in increasing or decreasing
sales—and that's the weather. Over this element
no
control.
we
a
beer
have
At the risk of alienating many fri.ends, j can
only wish for
a
good hot
summer
in 1955.
-
is completely Dieselized.
new
use
'
.
'
In
addition, we have opened at Argentine, Kansas, a
huge new. Diesel electric servicing, maintenance and re¬
pair shop. We placed in service more than 2,000 new
freight cats, and we inaugurated trailer-on-flat car serv¬
ice in the Chicago-Kansas City and Los Angeles-San
Diego territories. There have been many other improve¬
ments— mechanical refrigerator cars for transport of
frozen foods, family plan fares, economy meals, continu¬
welded rail,
mechanized tie gangs and
It is our intention
to continue
our
so on.
research into
im¬
proved passenger and freight service and to put improve¬
ments into effect wherever possible, but we and the rest
of the railroad industry today face a number of serious
problems, several of which threaten to back us to the
wall in a fight for survival.
In the postwar era the railroads have spent more than
$10 billion to improve the efficiency and economy of
their services. Yet with the general business activity at
Continued
.
We inaugu¬
streamlined train, the Sah Francisco Chief,
up.
■
ous
produced the sales gains of 1954.
new
$7,000,000 main line into Dallas, Texas.
high-level chair cars were placed in "experi¬
between Chicago and thC West Coast, and
schedules>of our top main-line streamliners were speeded
trains,
mental
ago.
Through detailed study and analysis, Falstaff management set the course for its consumer
advertising—plan¬
a
now
operating^ between Chicago and San Francisco.
Full
length dome cars were added to several of our passenger
.
anticipated this strong, competi¬
consumer
a new
Our railroad
In this strug-
gle for position, advertising* will play an increasingly
Armendariz.
en¬
25
over
ease,
modification of this
This particular groun. due to the low
independent
Cinemascope
has
Central Bank action. Last year the
a policy of mone-'
Based upon a
Crossley survey, the segment of the population
consuming the most beer and ale is the 21-45 age group.
and
Brothers start their "The Boy and The Bull," a
$2,000,000 picture to be filmed in color and
worked off by;
average somewhat higher than the,'
The trend of money rates of course
on
recent
Bogeaus
producers include
Edmund Grainger, who has two deluxe pictures ready
for
filming in Technicolor * and Cinemascope, -"The
Treasure of Pancho Villa," with Van Heflin and Gilbert
Roland heading an all-star cast; and a picturization of
James Street's best seller, "Oh, Promised Land," to
star Alan Ladd. Ben Bogeaus has a top-budget
picture,
starring Miss Stanwyck, as yet untitled, to go in Feb¬
ruary. First of three big movies to be filmed by David
Butler Productions is "Miracle At Santa Anita," with a
top star cast to be announced shortly. The King
being
were
Federal Reserve authorities followed
at an amazing clip.
population patterns
*
RKO's
probably
unprecedented
stocks
Assuming that the business forecasters
predictions of good times in 1955,
Superscope with John
Wayne, Janet Leigh and Jay C. Flippen and "The Con¬
queror" in Cinemascope and color with John Wayne,
Susan
in
their
wyck, Robert Ryan and David Farrar; "Son of Sinbad"
in color and Superscope with Dale Robertson, Sally
Forrest, Lili St. Cyr, Vincent Price and Mari Blanchard;
in
will
1954.
depends partly
In a little over three years
the U. S. has grown by 9 million, the same increase it
took a full decade to achieve from 1930 to 1940.
release
Ben
they
level of
general
with
at
t
"Underwater!"
Production; "Escape To Burma"
Pilot"
opens
optimism
unabated.
to grow
Production in color and Superscope with Barbara Stan¬
"Jet
year
highest level in
almost
Griesedieck
Joseph
of
early
this year such outstanding product as "The Americano"
in Technicolor with Glenn Ford, Frank Lovejoy, Cae$ar
Romero, Ursula Thiess and Abbe Lane;'"Seven Bad
Men" in Technicolor and Superscope with Randolph
Scott, Forrest Tucker and Mala Powers, which is a Nat
Holt
new
business
the
intend to put behind
low
greater business
.
the
we
though
tary
The
York and
showmanship
all of RKO's productions.
an
background, I would like to dis¬
our
feeling about the future,'
both as, it pertains, to the brewing
industry and more particularly as it
pertains to Falstaff.
• •
>
of the top grossing pictures of the
of
This may apply
inventories
cuss
Hollywood respectively to
the famed Florida resort for the film's premiere. This
New
excess
as
flew 200 of the top press of the United
we
States from
company. This gain,
over
With this brief reference to the past
Superscope production "Underwater!" at Silver Springs,
Florida on Jan. 10. We are so convinced that "Under¬
water:"
1954
credit.
bank
for
commercial loans, partly because some concerns
companies, but the period of liquidation is prob-j
ably nearing its end.
'
V
:
/
With another big home building year in prospect,;
the demand for mortgage loans will be strong.
Con-;
sumer credit is likely to increase somewhat, along with}
a
good market for automobiles and household goods.
Borrowing by state and local authorities will also* rise..
The volume of long-term corporate financing may ease,'}
since capital outlays for new plant and equipment are
expected to decline slightly from the 1954 total.
Interest rates will probably show no great change, ;
total sales since Prohibition ended in
1933 to well over 30,000,000 barrels.
want.
as
for
a
13% barrelage
1953, was achieved in
industry decline in sales
about 3 l/z %, and brought Falstaff s
spite of
RKO has long been
"Showmanship Com¬
James R. Grainger
pany" and I think it only proper to
mention the unique premiere RKO
held for Howard Hughes' new Jane Russell Technicolor
public
known
In
to
.
,
the
be
particularly;
will;
seeking short-term credit to add to their inventories.;
demand
represented
increase
personally read each of
productions and
that
spent on new;
The outlook is that 1955 will
for this industry.
Both
year
ening of business in general.
On the financial side,, more business will mean more;
$50,000,000 to $60,000,000 annually
that that expenditure
which
forthcoming
know
films
banner
another
construction
just completed, Falstaff Brewing Corp.
3,000,000 barrels of Fal¬
than 285,000 barrels, marking an
attractions completed for
have
George G"nd
private and public building should achieve new peaks.
This is significant, because in the past a good year for;
has rarely been accompanied by a slack- ;
.
more
lease,
equally
excellent
product
completed and awaiting release and
we have a group of outstanding in¬
dependent units at RKO who have
their respective shooting schedules
these
improved
and
1954 sales goal of
brightest outlook the company has
enjoyed in a long time. We have
excellent product currently in re¬
,
witness
JOSEPH GRIESEDIECK
firm conviction that 1955 will be a year of
continued economic; and technological triumph for Hol¬
lywood and that RKO will enjoy its rightful share of
this success.
RKO begins 1955 with undoubtedly the
...
construction put in place.
expectation
every
my
major
with
made
which cannot fail to produce
jobs,
.
portant support to business in 1954,
an all-time
record for the amount
economy
being
President, Falstaff Brewing Corp.
GRAINGER
1955.
our
on
expenditures
new
,
production
many
During the
of
C. H. Greenewalt
produce the same benefits Cor Du Pont and
the economy as has been the case in the
past..
President, RKO Radio Pictures, Inc.
is
1953
1955.
research
will
exceeded,
It
for
In the Du Pont Company, research
expenditures have unquestionably paid off, as exempli¬
fied by the fact that such a
large percentage of present
sales arise from products
developed years ago in our
research laboratories.
Research expenditures are con¬
get the business.
R.
forecast
the
other words, I believe the economic climate for
industry looks good but I believe we will have to
J.
1954
to
installed.
our
in
•
spurt means that in¬
recent
is starting the
new
year at a higher point than a
year ago, although below the pace
of early 1953.
It is distinctly pos¬
sible, however, that total production
in
one
or
more
months of 1955
will exceed
the average for 1953,
the best year on record so far.
Construction furnished very im¬
construction
expenditures
well.
dustrial
living standards.
is favorable and the po¬
I realize
large,
substantial
and
by industry generally —
eventually new investments,
that we are competng for the
consumer's dollar with products that may be classed as
more
utilitarian than glamorous. This means that we
must increase our sales effort and promotion. It means
that we must educate the dealer in the importance to
him of increasing his water system sales because of the
tie-in sales of other appliances he can make only if
a
reliable and adequate water supply system is first
tential
our
the
This
the
near
be about equal to those in
of
Curtiss Ginn, Jr.
adequate water supply.
believe the outlook
be
as
think
we
strong
by
long-term, an important
basis for. optimism is in the leverage
too, are realizing that they could
their production of crops,
livestock and dairy products with a
I
of
For
increase
While
will
push has been supplied
sharp rise in automobile
production, and improvement has
spread to various other industries
A
and
year
as
and
system.
ers,
more
sales
in
A
will
The trend towards
farm improvement and moderniza¬
tion also continues and many farm¬
supply
1955
program,
inadequate water
an
continue,
in
uptrend were already evident
the closing weeks of last year.
in
quarter of last
than
1955
have
average.
Personally,
for the new year.
level of general business activity
1954.
Indeed, unmistakable signs of
higher
a
an
excep¬
apparent
prospects
of
for
Cleveland, Ohio
for the traditional
has arrived
in
The
record.
tion
in
replacement of
the
been
look
I
" turn out
may
year
time
the
more
appraisal
somewhat under the
Nothing in the present economic
picture has discouraged continua¬
water
and
1953.
industry,
from
has
this
will,
1953
dishwashers, automatic laundry ma¬
devices
below
textile
far
fourth
should
water
was
Sales for the
with the possible
upturn
extended. Household appliances
as
7%
1954
Once
for industry generally,
as
been quite general, and
in sales to the industries
been
mild
be
can
of
not
believe
I
in
1953.
of
or
serve,
tion
will take away
market.
6%
decreases
extension
being built beyond water-
are
business
of
level
be
Company,
GUND
President, The Cleveland Trust Co.,
decline has
non-farm market will of course be
rializes, the rural
level
record
to me that the outlook for the water sys¬
tem industry for 1955 is favorable.
If the number of
new housing starts now being discussed actually mate¬
It
Du Pont
Thursday, January 20, 1955
..
GEORGE
President, E. I. du Pont de Nemours & Co., Inc.
GINN, Jr.
CURTISS
?
GREENEWALT
II.
.
on
page
64
Volume 181
Number 5396;.
.
The Commercial and Financial Chronicle
4
(319)
Continued
What
from
61
page
Banks for
Convertibility
To Issue Debentures
capacities?
much
space,
The
are
Considerable
than
more
here
is
available, could well be devoted
each
to
view
these in
of
the
of
the
on
the questions—would
of
some
certainly be
required.
Full and adequate
coverage be¬
ing precluded, the attitudes with
respect only to the first three
been
favor
type
States
general
for
establishing
tion fund.
for freer
of
Jan.
17.
This
provide
for
$40,000,000
of
the
redemption
Central
Bank
group of
The
of
for
of
nationwide
a
security dealers.
-
debentures will be
at par and
on
or
offered
about Jan.
direct
indirect.
Federal
and operate under the
the
Farm
Credit
supervision
Administra¬
become
Reserve
Mr. Sherrill
the
Weil,
Weber-Mitchell Adds
ST.
to
The
Financial
LOUIS,
Robinson
has
Mo.
been
James
added
staff of Weber-Mitchell &
to
the
Co., 411
North Seventh Street.
Bloom
is
curities
3820
business
Broadway.
then
at
there
are
any
the
of
.
Observations
does
to business?
rived
pur¬
...
convertibility
If
many
have
we
it
answer
is
ar¬
that
the
To
answers.
group most affected and
most
involved, the foreign traders and
investors, it is the "indispensable
key to'a broad and expanding
flow
of
multilateral
trade."
To
all branches of industry and com¬
it is the
merce,
sales
and
activity. To the whole
it is the channel through
economy,
which
better standard
a
of
living
achieved.
be
may
to greater
avenue
Whether
we
have
to
are
con¬
vertibility, however, depends not
on
the businessman, but on the
of
state
whole
here
mind
of
the
abroad.
and
whether
people
as
a
their political
and
there
leaders,
depends on
willingness
It
is
a
to endorse the principles and live
to the obligations of converti¬
up
bility.
It
depends
whether
on
there
is an underlying sympathy
convertibility. It depends on
whether each nation is willing to
for
consider itself
a
custodian of
vertibility. It depends
the
world
is
ready.
con¬
whether
on
•"
:
Every
Russell With Walston
(Special
LOS
—
Ken¬
Russell has become
asso¬
ciated .with
South
Waist
&
Co.,
550
Mr. Russell
vn
Spring Street.
formerly
was
year at
of
Smart
pebble
With A. C.
to
men
along Madison Avenue have been heard
to
pick
ana
rock and
up a
see
swish it around and
what crawls out/' Or: "Throw in
see
how the ripples go."
the
trading depart¬
ment for Edgerton, Wykoff & Co.
(Special
advertising
"Let's
a
asked: "What about future business
we are
Jersey, the Crossroads of the East?"
under similar circumstances:
say
with
Holton, Hull
& Co. in the trading department
and
prior thereto was Assistant
Manager
this time
conditions in New
Chronicle)
ANGELES, Calif.
D.
neth
to The Financial
The
This is known—we understand—as
succinctly,
Allyn
Financial
as
trying to
guess
We do not presume to
Chronicle)
CHICAGO, 111. — Richard L.
Boyle is with A. C. Allyn and
Company, Incorporated, 122 South
business climate which has
augers
"Noodling",
or, to put
it
more
what is going to happen in the future.
be "Noodlers." But
we can
say
v
this—the
prevailed in New Jersey during recent
years
well for 1955.
La Salle Street.
During the
Goodbody Adds
(Special
to
The
CHICAGO,
nett
of
has
been
Goodbody
Financial
Chronicle)
111.—Wm.
added
&
Co.,
to
1
and
O.
staff
North
La
Salle Street.
Joins Cruttenden Staff
(Special
to
The
Financial
Chronicle)
Cherry
has joined the staff of Cruttenden
&
Co., 209 South La Salle Street,
members
Midwest
of
the
Stock
New
new
branch
Bur¬
the
CHICAGO, 111.— Alton
year we expect
measured in increased
York
of
more
plants and
industrial terminals
Public
.
.
growth in New Jersey which
population
new
research facilities for
this great
.
...
in the advent of
shipping centers
industry
and in many
...
...
new
can
be
factories
in the installation'
in the development of greater
other
new
activities throughout
State.
Service Electric
its part as a
and
Gas
Company will continue to play
citizen of New Jersey, firmly convinced that this State is
a
good place to live, work and play.
and
Exchanges.
Joins Reinholdt & Gardner
(Special
to
The
Financial
Chronicle)
ST.
LOUIS, Mo. — Russell C.
Yeager is
now
connected
with
Reinholdt
&
Gardner, 400 Locust
Street, members of the New York
and Midwest Stock
Exchanges.
PVBLICSjj SERVICE
...
Investment
Roth
previously
& Irving
—
Harry M.
engaging in a se¬
now
addi¬
interests
was
OAKLAND, Calif.
F.
stabiliza¬
economy.
Caldwell
associated
H. M. Bloom Opens
Chronicle)
—
policies consistent
vital
Concluding
What
the
Chronicle)
—
Company.
21,
law
The
with
or
has
Company, Dixie Terminal Build¬
ing.
The Banks for Cooperatives are
under
with
liability for them, either
(Special
incorporated
Sherrill
sumes no
,
1955.
of
are
the rate of interest will
be announced
fi¬
nancing operation is primarily to
instrumentalities of the U. S. Gov¬
ernment, but the government as¬
Their debentures
CINCINNATI, Ohio
There is broad support
American
one
on
Service
Administration,
operatives.
assistance
the
(Special to The Financial
co¬
opposi¬
any
currency
trade
the
mean
announced
Bank
Credit
service loans to farmers'
William
St., New York 38,
N. Y., the banks' fiscal agent, with
With Reserve Inv. Co.
make
rate
special
with
Farm
director
banks
rate
Government
of
tional
Cooperative
Smith,
and
These
the appropriation or allo¬
of
funds
by the United
cation
pose
G.
Homer
Government.
to
of floating
There is
to
issue
one-year con¬
collateral trust deben¬
an
independent agency in
the executive branch of the U. S.
There
fairly flexible
a
public
a
of
tion,
summarized
follows:
as
growing tendency
least
policy.
tion
a
some
at
or
be
may
.
briefly
very
has
for
arranging
$40,000,000
tures,
of
and
Banks for Cooperatives
13
solidated
turn, and—in
positions of business
questions
of
reactions
mixed
Cooperatives
2V8%
debentures
maturing on Feb. 1, 1955.
The
offering
will
be
made
through Macdonald G. Newcomb,
130
Means to Business
petitive
Cooperatives
63
AT THE CROSSROADS OF THE EAST
v
from
offices
at
m
The Commercial and Financial Chronicle
(320)
Continued
from
page
ably beyond the all-important election
62
steady and
the
There has been
inadequate.
and
a
alarming decline in the railroad's proportion of the total
intercity freight traffic. Diversion of traffic from the
railroads has been due in large part to government poli¬
cies and
for air,
the
time
the
railroads
equal basis with
is
seek
on
an
We have suggested
subsidy to none.
a
compete
to
Union
adequate
of
about—first,
The need for the
tive
in
tion
view
we
the
warned
were
to
tain
was
out
With
forward
textile
industry has shown
improvement and ap¬
struction
activity, now at a record
high level, shows no signs of dimin¬
ishing in the immediate future. Pro-,'
^d&ction irr; the steel and automobile,
will
expanding
dence that our country, can and*
move
an
and
and
headed for a period of more
normal demand and production. Con¬
firm coirif i-
a
dips
pears
optimistic,"
offered a
accomplishments during the past two:
displayed
year,
the year. /
The
measurable
message
current
seasonal
changes, could well extend through¬
temperate review of Administration
years and
the
minor
with
recession
getting worse
"too
being
President's
by late fall, is almost cer¬
in
the first six
continue
to
months, of
^
from
Far
the
economy
the
worse?
and
current
If. FREDERICK
was
short months ago?
few
a
happened
What
charge is all the more impera¬
user
of
just
as¬
user
Congress
year
supposed to happen to the na¬
were
government plans for
greatly increased, expenditures for ^highways, airports,
airways;and waterways. The government already has
announced plans for spending within the next 10 yearsf
many billions of dollars on a highway system.
^
*
now
the
to
message
charges for services, rightsof-way and other facilities provided for air, highway
and water carriers at government expense, and secondly,
de-regulation of railroads to accord them greater free¬
dom in the making of competitive rates.
sessment
healthy
complaints that President Elsenhower's
to President Eisenhower's Cabinet Committee on Trans¬
port Policy two means of bringing this
fifty-five will "weigh-in" as a strong and
for business, and may prove a worthy con¬
tender for the championship record now held by 1953.
An upward movement in production and trade which
began in some lines in mid-1954,
and
became fairly general
in the
Nineteen
HALLECK
CHARLES A.
State
"too opti¬
mistic" aren't finding many takers. Such comments are
in a class with the alarm viewing of the recent campaign.
What about all the dire things that
the
of
of subsidized carriers.
freedom
President, Waehovia Bank & Trust Company,
Winston-Salem, N. C.
U, S. Congressman from Indiana
Feeble
rigidly restricting the railroads in their
efforts to meet the competition
All
HON.
programs which have provided large subsidies
highway and waterway transportation, while at
same
HANES
ROBERT M.
forecasting is hazardous, I submit the above
your consideration
based on my interpretation of
condition of the economy as I see it today.
for
factory
Thursday, January 20, 1955
While all
levels, railroad earnings have been both unsatis¬
record
1956.
year
...
industries: is moving at
Robert Mv Hue* -
a
good pace.
Personal income: in. this hation is at
based on a just and lasting
the highest point ever reached and consumers are show¬
peace.v.
7'"v.;;*,'.:vI 7
' •*''/
ing a willingness, to buy; where quality and price are
Beyond that, the message presented
satisfactory, 'V _' '
7
a sobering explanation of the prob¬
These trends and factors
economy
IIAGEMANN, Jr.
-.
"President,
Rockland-Atlas
"The year 1955 has begun
,
and
a
National
with
of ^Boston
Bank
Charl«s A. Halleck
uptrend in business
an
ahead if
of inflationary forces.
resurgence
the
applying the credit
Spring of 1953, reversed its policy in the
last half of
The world
1953 and the first half of
3 954
by increasing the money supply
establishing a policy of extreme
ease in money to stem the downturn
in business that began in the sum¬
Observers who
before.
looks with
some
on
will
the rapid
the
gesture
It is
people to turn to certain high-grade
of hedging against inflation. '
more
cause
equities
means
as a
during 1954 there was no marketable government
offering designed specifically to attract nonbabk
buyers. In addition, Congress had to authorize a tem¬
porary increase in the debt limit to enable the govern¬
ment to meet its obligations. Furthermore; Central Banks
water
or
far
so
trying to furnish ample funds for business expansion
without at the same time
increasing inflationary^ pres¬
sures, one phase of which is dramatized by activity on
exchanges,
'
.
reduce
the
number
of
dollars.. The
Board -tried to do
the right
thing in the Spring of 1953, but businessmen,
leaders, politicians and even a large, percentage of
bankers, to say nothing about the voters, were unwilling
to undergo the irritation and
pain essential in a return
when
it
office
took
two
interest
r
predictions, made
many
,
ru ^
'
the
~
America
~
well-being of all.
so
rates
-
will
tend to be firmer as the Federal Reserve
bit but not enough to hamper business expan¬
The business uptrend which has started will con¬
lightens
sion.
tinue
a
through 1955.
Bank loans will be
some
Bank
the
operating profits, in my opinion, will be about
as in 1954, but portfolio bond
profits will be
scarce.
In
conclusion, I expect 1955 to
be
an
excellent year
for most lines of business
occur
coming
means
up
a
barring bad strikes that might
renewing of many major labor contracts
this year; and a good business year generally
the
on
good
year
for
banks.
I
want
to
emphasize,
however, that the day of reckoning is still ahead.
We have not moved into
cycles
are
eliminated
or
a
the
new
era
in which business
inexorable
laws
of
sound
money suspended.
Irredeemable paper money and con¬
tinued inflation is not a permanent
way of life.
Some
day we shall have to pay the penalty, but as far as I can
see
1955 will continue the
tion with
exhilarating effects.of infla¬
the pain postponed for
some-
later year prob¬
the
.
a
In
our
.
m harnischfeger
Indications
are
::
*
that business is somewhat on the up¬
swing for the^ year: ahead; so there should be
additional
plant revamping; and purchases of cost reduction equip¬
ment in the industrial field. -The demand should increase
particularly for material-: handling
-■ welding ' .equipment
and ? for
oj_
AfMar ,
.
r
and
RrGgraHr- dedicated to 7 tnachine -tool equipineiiL Equipment
such
i
as
diesel engines which
.
bririg
„
about greater economy of operations
should be in good demand.
'
•• v
777
PresidenLvHamisehfegertCorporation
:
7\
In.
the
construction
industry
•
the.
*
..•>
^
contracts let plus the work contem-
».f •'
opinion the general outlook for business ih the
a not sales basis is quite good.
plated indicates
•
United States for 1955 on
By this
the
than
In the
an
expansion-
over
last year.
Consequently; business in
construction industry should- be
we mean better than. 1954: andr approximately 7
;good. The expansion of quarries and
equal to the banner year of 1953. We would expect that,
cement plants should be substantial
net profits in 1955 will be better
1
to meet the contemplated expansion
than in 1954 and considerably better
1953, especially for those who
were
burdened
with
taxes in 1953.
To
7
support- this,
there will be
same
in
by provide better job security for our 12,00(1 employees.
Executive Vice-President, Minnesota Mining &
higher at
year-end.
position
years
freely during- the
Manufacturing Company
light of the foregoing, what about the year
banking? I still see no willingness on the part
of any of the above
groups to subject themselves to the
necessary discipline that a return to sound-money would
require, so I feel there will be an increase in the money
supply and higher bank deposits at the year-end.\M6ney
established
government' can
GEORGE H; HALPIN
.
the
In
ready
<
-
3955 for
gas, and
chemical in¬
This strengthened our ah-
valve field. In November, the En-
.
will turn its. baekion the. President's appeal for coopera?. ;
'■
money.
petroleum,
'
^
themselves in
3abor
to sound
Houston, Texas, which makes
stee lvalves for the
pressure
dustries.
of the proposals on the books.
I cannot believe that a Democrat-controlled Congress
dollars and the'cure is
try to regulate where those dollars go, but to
to
Co. of
high
80%
some
The basic trouble is too many
hot
obtained the W-K-M Manufacturing
'■'v'v ''-'"•'•'-V"
early days of the Republican;. 33rd: Congress; ithat^ only a
small portion' of the original Administration program
would be enacted in'tp law.. Such predictions were thor-.
oughly discredited when the final returns were in, with
of
the stock
transition.
Administration
i recall the
an'extremely
history records-impossible, task
as
were developed sub¬
past year by
acquisition of
a
well-known
company
in each of these fields.
was
Citizens who
credit.
The Federal Reserve Board is faced with
difficult, and
a
American farmer;, is inisi^iL;:
tory reveals that it is imposible to maintain two levels
reservoir either with
electronics,
the
,
here; and abroad have attempted to
regulate the supply of credit so that it: will;be in Short
supply for speculation and plentiful for -business; His¬
same
and
stantially during the
-
past both
the
begin
gineerjng and Research Company; of
Charles-J. Hardy-; Jr.*
Riverdale, Maryland (ERCO), lead¬
ing manufacturers of aircraft and V
[
,
electronic equipment, was obtained to complement the
activities of our two other electronics plants.
The past year's investment in plants, new facilities,
of the government, and with the cooperation of 'farmers
research and personnel in our electronics operations,
and their representative orgamzati6ns, -are beginning to
pay dividends.". 7
' 7 7
^
777 should provide a broadened earnings base in this field
The troublesome surplus is dwindling; .we are gradu- " .during the-tcomingcy ear; ,4 -77
.7
/ .(
ally adjusting production to-fit the needs of expanding; : rK Likewise; we will continue to diversify our production
in the years ahead in order tQxmaintain. a more even
.markets, and: the easing -of restrictive ^crieage controls,
return on the investments- of our stockholders and there¬
always a peril to the traditional independence of the'
bond
in
should
the farm surplus situation resulting from the
disparity between production atid consumption::
-7
Courageous and far-sighted policies,workpdoutit con¬
ference between the Executive and; Legislative branches
ago
and
the
our
Talgo-type passenger equipment
show results during the coming year.
7 Two main lines of business, valves
to
established fact that, far from
now
hower
Certainly there is reason to be concerned about infla¬
as
the budget has not been balanced, the money
supply as defined as the total of bank deposits and cur¬
rency in circulation has increased to -an all-time high,
tion
in
of
being a year
of economic decline, 1954 was one of solid prosperity.
Personal income and consumer spending are reaching
new records, and as we move into 1955 the line on the
national production chart is moving upward.
One of the most complex problems faced by the Eisen-
have the effect it desired, or whether the Board's admis¬
sion that there is an inflationary breeze to lean against
may
development of
are
strains of such
the Board will
made by
Prospects for the coming year are excellent, since the
our valve and electronics properties, and
brighter than ever
-
relatively little mar¬
gin trading in the stock market, and
largely being bought for cash, only time
whether
tell
7
bearing fruit.
pointed out in his message, the tran¬
The ACF Electronics Division was
sition to a peacetime economy is "largely behind us*"
We have moved. through this difficult period with a ;r :eAs^a
i? J?a.nua^»
a*
Alexandria, Virginia. In April; we
minimum of adjustments, considering the pressures and -
M. F. Hag emann, Jr.
are
for its share
CHARLES J. HARDY, Jr.
long way from uni?
a
the willingness to-
Chairman of the Board, ACF Industries, Incorporated '
As the President
Since there is
since stocks
Americans
all
the exchanges.
on
predictions of violent eruptions
globe have not come to pass.
ready to write off all attempts f
certainly
are
we
the ability; foresight, and
work for business and to compete
vigorously
©f the market for its products or services.
light, the past two years have seen
historic trouble spots.
On the domestic front, this Republican Administra¬
tion's efforts to lay sound foundations for a vigorous
economy that will improve the standard of living for
that the Board
djsfavor
prices
ment has
versal sweetness and
prices, and just recently the Reserve
Board
has
raised margin require¬
ments from, 50 to 60% as a warning
increase in
with: jus¬
optimism.
tensions eased in many
evidenced by lower government bond
stock markets
While
guar¬
antee, a good year of business. There will be opportu¬
nities for progress and -success, where business manage¬
goals. At the same time,
effective defense community are
an
in the last half of 1954,
the Federal Reserve Board again has
permitted money to firm slightly as
the
were
indicate, but do not
years
bring about closer unity among the free nations of
the world have been forced to admit that chances for
Beginning
to
the
to
1953 and extended into 1954.
of
at peace,
is
here and there over the
and
mer
in
solve
must
to achieve our
are
we
we
however, there are good reasons why we can,
tification, begin the new year in a spini ui
leation, Degintne pew
spirit of
The Federal Reserve Board, after
brakes in
lems
excess
believe
increases
that
a
rather
than
decreases.
It
there has been
opinion that 1954 has brought
inventories into better balance than
our
assist
existed
in 1953, with no further in¬
ventory liquidation to reflect against
1955 business
as
We expect an
employment
has been in
We
expect
in
our
business
and
increase in general
1955 over what it
that
increase in 1955
For
it did in 1954.
1954.
George H. Halpin
new
over
will
1954.
own
will
company, per se, we expect our
be better than the banner year of
considerably better than 1954
products which
product businesses.
new
orders
are
due to
developing
:
..
firming of 1954 sell¬
ing prices in 1955, tending to slight
is
-
Predicting the
future
will,
of
^course, depend somewhat upon the
IV. Hamischfcc«r
total operating capacity of the auto¬
mobile industries plus the appliance industries tor em¬
ployment, both of which-have a substantial effect upon
the basic materials industries.
During the past year
profit
■
we
highway, program.
,
into
a
1955
1953
number of
major
reduction in inventories which should
bringing about an improvement in business.
Competition in all lines should be extremely keen in
that supplies are ample and there is even an over¬
capacity in some industries. The over-all business out¬
look will probably be about the same as in the last
month of 1954 with the exception of those companies
which have a specialty product or are in a position that
they can participate in the large over-all market by
reason of good sales organization and an advantageous
cost position.
The decreased backlogs will naturally
affect future earnings.:
We
anced
new
a
in
hope that the Administration will insist on a bal¬
budget and develop improved international rela-
Continued
on
page
66
Volume 181
Number 5396
.
..
The Commercial and Financial Chronicle
(321)
something like 18 times our rate met by the construction of the from Venezuela. By next summer
large
refinery in the
production at the time of the Interprovincial Pipe Line from another
Leduc discovery.
We have built Edmonton to the East and {he pro¬ same state is scheduled to start
operating on what we hope will
transportation links necessary to ducing companies accepting a re
a
substantial
volume
of
handle as much oil as we will be duction in the field price of their be
jected into the future.
able to produce by 1960 if our oil in order to sell in the more Canadian crude. Once again strong
Starting
at the primary end of the indus¬
world
competition
could
dash
present rate of discovery of new distant markets. In 1953 the chal¬
try, that phase in which oil is reserves continues, as we believe lenge was met again and the these hopes.
Another significant element in
searched for and found by geol¬ it will.
We are now in a position accumulating capacity to produce
ogy, geophysics and exploratory to refine virtually all the petro¬ was relieved to some extent by what may well be a future trend
to
supply refineries across tiie
drilling, the record expenditure of leum products that we can con-' completion of the Trans Mountain
Continued from page 13
toba. Faced with this
;
of
group
ducers
Canada's Oil Picture
$350 million in 1953 will be
over
While Alberta continues to pro¬
duce by far the greatest share of
Canadian crude oil, an important
All
the? second
as
the ranks
as
sell
our
came
more
than
a
thousand miles
the
heavy
oils,
the bulk
been
already
gas
discovered,
Yukon
share.
salt
and
that
and
also
Even
in
domes
provide
we
can
do
this
foreign competition,
producers ultimately might
oil
have to decide to shade the price
asked
In
»
for
1949
tions, this is somewhat
in;'the field.V';>.•YV^theYvolumes we
a
similar challenge was
the
refinery
in the prairie provinces and
the
short
also
which
increased
than
in
lot!
a
1953
in
that
on
page
CHEMICALS
Industrial chemicals
;i
the
Petrochemicals
the
* *
l;
-
Agricultural chemicals
their
could
It is 20%
and
12
1947.
0
Brass and other non-ferrous
fabricated parts
alloys,
and beat exchangers
M
EXPLOSIVES
more
times
It is
PRODUCTS
METAL
reserves
Olin smokeless Ball Powder
that
Industrial and
Railroad
estimated
military explosives
torpedoes and fusees
Compressed air coal-breaking equipment
completed
wells
two-thirds Of our
consumption of 560,000
i
satisfy
current
Contim
formdustry
already
could
Continued
Mani-
r,V
produced before the LeLduc dis¬
covery
greatest in Canada—refining
moye would also?
^
receives cnide ;py<kluctioh of ? Alberta and
day
And that's
crude will be carried by pipeline
to Montreal and refined in that;—
-
produce in 1954 an
about 265,000 barrels
in Western Canada.
of
a
some ing problems might well try to
Being solve them in a similar manner^
Saskat¬ with the same display of enter¬
westerp Ontario. Those refineries
should
average
of
bright hope for the future in
up
of oil for us—once exploration got
under way.
We
a
the prospect that other groups in
the industry with similar market-'*
the Arctic, large
exist
greatly
mean
is
but because of competitive condi-
But
home
have
Territiories
will
are
capacity in crude oil from Canada, crude
abroad.
at
found in commercial quantities in
British
Columbia, where large
Northwest
and
oil
an
of
of
States
the
extended markets
province, and
one of no little promise.
Further,
for my money, I am confident
also that oil eventually will be
quantities
of
oil.
crude
United
in Minnesota and Wisconsin. There'
been created
disposition
the
building a new refinery in St
Paul, Minnesota, to operate ex¬
clusively on Saskatchewan crude
and Sell its products competitively
order to meet
oil
province,
and a whopping' jump took place
in Manitoba to bring it also into
to
is
Saskatchewan
a
only if it is competitive. This be¬
ing so, it might well be that, in
and
Saskatchewan to mark it fur¬
ther;
remains
for
oil
problem,
of the Saskatchewan pro
enterprisingly set up snop
the coast from California. In chewan crude thus far discovered prise.
addition, a new plant which was is not acceptable to all types of
which
To my mind, we will see the
opened last fall in the State of refineries, and particularly those day—and I do not believe it is
Washington
is
taking
half its; within market range of western many years away—when Canadian
oil in
development, nevertheless, is the
broadening out of the area recog¬
nized as good
oil country.
A
healthy increase has taken place
in
that
West Coast to
at Vancouver,
which previously
already
displacing
New Markets Required
1954.
has
Pipe Line to the
supply refineries
in this country.
sume
nearly matched when the outlay
is tallied for
border
in
65
PACKAGING FILMS
barrels daily if it were physically
possible
desirable
and
economic
this
done.
the
road
We
from
view
point of
now
are
to
Olin
an
have
well
the
few
next
deed, Canada's
Cigarette and other fine
1
•
m
Endless
Frost southern,
Jtamset
»
J
;
pine and hardwbdd (umber
powder-actuated tools and fasteners
Western kiln guns ond ammunition
iWith
Olin industrial
latent
for
dry ceH botterie#
agriculture
Major Challenge
:*
The
swing of attention for the
being from > Alberta to the
other prairies provinces, is a nor¬
time
<
M AT HIES ON
OLIN
COMPLETE FERTILIZERS
NITROGEN
FERTILIZERS
'(
PESTICIDES
trend
from a region that is
fairly well occupied by the
oil industry to those areas which
now
have been
worked
over
less
C
H
SPRINKLER
One of the notion's
capable
in
of producing.
It is
the development of
most oil countries that their pro¬
duction
a
of
oil
place in
served
sources
must
always fight
the markets that
competitively by other
supply.
of crude
Initially, the problem was one
transporting the oil we had
discovered, but with the construc¬
tion of our great pipeline systems,
today the problem is the disposi¬
of
SQUIBB
Formed in August, 1954,
by
merger
Glandular
of Olin Industries,
Inc., and Mathieson Chemical Corporation,
Anaesthetics
Pharmaceutical specialties
Olin Mathieson
and
but
resources
brings together the skills, facilities
of two of the country's long established
V"
physical
facilities
to
produce
SQUIBB VETERINARY
PRODUCTS
Antibiotics
rapidly growing industrial organizations. The wide
Other
veterinary preparations
variety of Olin Mathieson products, manufactured
consumer
in 45
serve
plants in the United States and 16 abroad,
products
WINCHESTER sporting firearms, ammuni¬
industry, agriculture and the public
tion and gun preparations
1
WESTERN sporting ammunition, sfeeet and
iA\
throughout the free world.
trdpshooting equipment
SQUIBB household drug products and
toiletries
LENTHERIC perfumes and toiletries
OLIN MATHIESON CHEMICAL CORPORATION
New York, N. Y.
*
Boftimore, Md.
•
SUPER PYRO and U.S.I. PERMANENT
II-
onti-freeze
PURITAN automotive specialty products
lost Alton, III.
OLIN flashlights and dry cell batteries
generate an enormous volume of
activity with a small percentage
expansion.
We have created the
products
Anljhiotics
oil
industry is
better off today than it has ever
been, and its economic and physical position is such that it can
<
Biologicals
sides ourselves have it to sell.
Canadian
profession
PHARMACEUTICALS
Nutrltionals
tion of the oil beacuse others be¬
The
IRRIGATION SYSTEMS
for the medical
major diversified
processing ond manufacturing companies
which to sell the oil that the wells
axiomatic
SANITIZING AGENTS
C OR FOR AT ION
EMI CAL
in¬
tensively and where :the ^oppor¬
tunity is wide open for making
new
discoveries.
Qn the other
hand, the decline in wildcat drill¬
ing in Alberta; can also be said
to be bound up with a major chal¬
lenge; which has been thrown at
the oil producer by a chain of
economic circumstances dating
back to 1953,
This challenge is
to bend all efforts and ingenuity
to the task of finding markets in
are
v
MISCELLANEOUS
-
markets.
for
belts
0
ability to produce
oil, the important question is that
are
woven
Flax fibers
emerged
be drawn into another war.
mal
papers
Cigarette filters
0;
useful but; indeterminate quan¬
tity in continental strategy to a
major
reserve^
which, can
be
mighty important should we ever
of
PRODUCTS
0
In¬
years.
has
oil
PAPER
m
without fanfare from the status of
vast
1
on
a
a
Cellophane and
Polyethylene film
.
to
self-sufficiency, and
better, in our oil production, and
subject to extending our mar¬
kets, both domestic and external,
we should achieve self-suffiicency
within
<<-4
«
THE PRICELESS INGREDIENT Of EVERY PRODUCT IS
THE HONOR AND INTEGRITY Of ITS
HAKEE®
FROST outdoor furniture
2944
66
The Commercial
(322)
Continued from page
ERNEST
64
President,
confidence so necessary
in developing forward looking business planning.
We
hope that labor will recognize that earnings must de¬
pend upon productivity in order to insure continuity of
work and an upward swing in the economy.
Furthermore, our philosophy of giving foreign aid
should be rationalized. I personally would be in favor
of having gifts of this kind handled in the form of loans
through the Export-Import Bank and that a substantial
portion of them be set up as a reinsurance program so
that private banking institutions can assume some of the
obligations after careful investigation. A program of this
type has been carefully developed by the New York
Board of Trade, International Section, by specialists on
tions which will bring about the
Another
With
there
trend
have
will
that
matter
influence
an
field
sales
1939
in
in
industry
play
than
for
in
about
$8
war
billion
the
electronics
the
But it is safe to
use.
that, under
say
portance in
our
its relative im¬
way of life is bound
increase
for
one
to
both
or
of
reasons:
first, the increasing em¬
ployment of electronic devices in other industries; and
second, the creation of new electronic industries.
Aviation is the prize example of what electronics can
contribute to the' growth of another industry.
The ex¬
pansion of aviation has closely paralleled the devel¬
as
radio ranges, radiotelephony, the ILS
direction finders,
(instrument land¬
ing system), radar, radio altimeters, distance measuring
equipment, and long-range navigation systems (Loran,
Navarho, etc.). Other forms of transportation making
great and increasing use of telecommunication and other
electronic
devices
ships, trains,
are
trucks and taxicabs.
Microwave
and
fleet-operated
for" communiction, monitoring, and
increasingly employed by organiza¬
and distributing electrical power and
is
tions generating
light, and by pipeline companies distributing gas and
oil.
The telephone industry, which has
long made use
of
from
for multiplexing circuits and for over¬
communication, is now finding new uses ranging
automatic"' switching
to
long-distance overland
transmission.
the
tuations
in
stocks
the
affect
best
are
known
to the
public in
accounted for
tively
mon
common
liquid
stocks)
the
proportion
relatively low.
was
of
As
result, for
a
industrial
electronics,
where
perhaps
greatest promise of future growth is found.
production
control,
counting, and the performance
manually performed,
inventory
of
bringing
are
other
us
control,
tasks
very
the
Electronic
ac¬
hitherto
electron
hitherto hidden
are
making
speed
and
us to
control
atomic
of
too
•of
calculate
to
with
closed-circuit
therefore
and
dangerous
Now that
levels,
a
inflation
stocks
common
unemployment,
not
trend which
ing—such
rise in
a
well gain momentum
may
in liquid wealth
secret
showing
television
is
safely,
difficult
dawned
to
would
in
once
make
more
business
our
stocks
once
expose
the
A
later collapse.
of
our
.
calculation
rough
stocks subject to
total liquid
wealth.
of
that, far from creating
as
pessimists
have
20%
range—a
that
in
market averages
our
If
was
level at which
in
economy.
,
cal
per
reduction
motions
can
For such
production,- which
ness
of
intelligent
the
lean
market
current
measures
uct, in 1954
15%
.
Growth in the
the
.
.
but
if
require Hercu¬
.
ural
gas
industry
gas
being
reserves
being consumed at
discovered
even
are,
in
mechanical.
record levels every year,
new
industry's
big
problem has al¬
bringing enough gas to
been
added to
of the economy, how¬
run
its course and
.has about
longer have
no
equipment have
a
the
John A. Hill
.
v
for the
000
has
customers
just
this
serve
should set
member
that
the
record
new
a
consumer
business and government
in
1955, and if
spends
If the American manufacturer
buying
help but enjoy
power
twice
can
with effective selling
a
95%
Heyke, Jr.
all
of
about
United
industry is
that
many
spiritually rewarding and rqeaningful.
industry, there can be no limit to future
well
over
and
States.
that
practical
a
of
The
even
the
25%
present
more
most
the
size
way
after
of
the
highly
than
and
energy
of
the
used
natural
source
War
gas
of
there
to
re¬
year
match this
power,
in
can¬
of good business.
plant and equipment, and record research and develop¬
ment activities of recent years
should begin to bear fruit
in the form of increased sales of its present
products and
greater commercial harvests of the
new
products which
have been nurtured in its pilot plants.
Production
in
many
upward
sectors of the chemical
long
as
ago
synthetic fibers, industrial
organic chemicals
record levels of
In
the
as
last
gasses
be
appear to
on
10%
and
other
Plastics,
basic
non¬
the way toward new
consumption.
metalworking fields
there
already
are
is
many
for
in¬
The steel producers look for better than
in 1955.
more
industry
January.
steel
this
confident that their
The automobile
year.
cars
are
makers
are
designed to meet the selec¬
tive buying market of 1955. The appliance manufacturers
are
likely to enjoy increased business in 1955,
many
ping
of the household appliances bought in
sprees
now
that
the shop¬
of the Korean supermarket of 1950
was
proaching their sixth
It
seems
to
me
year
that
of
are
1955
positive print of
ap¬
use.
may
,
well
are
supply,
these
as
rec¬
he
natural
populated, sections
last World
bringing
more
amazing in view of the fact
thousand miles from the
until
au¬
today,
sales
gas
of
been
an
1954, almost 22,000,.were
receiving nat¬
This represents
we
much
as
combined, the potential is evi¬
section.
ural gas.
John E.
.
.
directions alone there is much room
expansion of industry's profit capacity. Personal
income
turned
18,000 miles of pipe¬
line
some
spending for
capacity may be ; taken
up by increased spending for more
profit capacity. Materials handling,
automation, distribution
in these
.
meas¬
an
At the end of
from
but
year ago,
creases
1,800-mile
plant
new
signs of increasing activity, and the outlook
thorized to
business
declined
ties is the Pacific Northwest and
in¬
signifi¬
any
upon
country that is not presently served
by natural gas transmission facili¬
people will become not merely
are
already huge nat¬
ural
gas
network
totaling
about
413,000 miles. The only area in the
gas
growth.
nat¬
annually than
Expansion in 1954 could be
the
our
more
de¬
As for the chemical industry, the high outlays for new
the customers who want it.
If
essence,
With
to the
spending for
this impor¬
production
not
best be indicated by
can
decline
of the slack in business
dent.
HEYKE, Jr.
the
be traced
can
government
record levels of
on
.
predictions;
growth in transmission facilities.
of
Capital'expenditures for
and
to
ord
E.
Much
depressing effect
activity.
changes
;
.
The decline in
tant segment
the
years
the
agencies to avert financial and business chaos.
JOHN
in
crease
75%
the part of our government monetary
on
-
cant
.
thereafter collapses, it will
with
human
eastern
country's Gross National Prod¬
defense.
I predict that a further
year.
exceeding
conditions,
auto¬
is
other
the year ahead is one of
will be resumed.
economy
in the
stabilized at current levels,
be
can
excellent,
an
problems
best hope of continuing to
capita
that
more
an
our
a
expansion of the bull market will lead to boom busi¬
permit machines to monopolize mechani¬
functions, life for
richer, but
of
ever,
minor effect
,
.
stocks
common
a
HILL
common
some
substantial
even
A.
should
1929
nearer
could have only
help
proclaimed
of
meant
confidence, rather than the concern of a year ago. 1955
has all of the appearances of a
year in which the growth
*
During the past 15
stocks
line
new
number
a
outlook for
common
,
suggests
common
The
beings to
fatiguing and boring and wasteful performance of
electronics
At this time the
the
as
the risk
changes in value, represented
our
repetitive
JOHN
major factor,
a
to
us
depression, should such expanded markets for
stocks
processes
the
and
has
President, Air Reduction Company, Inc.
increases
more
stocks
common
cycles and
high living standard. Perhaps more im¬
portant, it holds the promise of finally liberating our
people from the chief bane of mass-production tech¬
niques—the
Union
facilities
healthy,
strongly-competitive merchandising
position
today, and there is every indication that the gas in¬
dustry will set new sales records for many years to
makes possible larger spend¬
common
the
handle.
without
transmission
are now in a position to fulfill the
tremendous
growth predicted for the years ahead. From an almqst
impossible demand for manufactured gas immediately
following the war, the gas utility business is now in a
un¬
us
superhuman
invention, the electronically controlled
America's
of
Brooklyn
of
their significance in our economy.. A further sharp rise
ways
or
have
matic factory is our one
crease
expansion
utilities
again penetrating higher
are
ured by nearly
like to think
every new
.
The
that
former periods.
electronics.
I
attractive, seasonal rate for the heaviest fuel users, and
has put natural gas in favorable competition with other
industrial uses.
v
fuels for
the business cycle has been
President, The Brooklyn Union Gas Company
are
observe, and other electronic apparatus
would
age
effect of this seasonal load on Brooklyn Union
fairly typical of what is happening in most natural
gas utilities.
The large volumes of gas that must be
purchased to sustain a large house heating market, re¬
sults in a surplus during the warmer
periods of the
year.
This abundance of natural gas makes possible an
close to the
nature; electronic computors
while
remotely
otherwise
of
possible
it
accuracy;
permitting
to
realms
microscopes
same
come.
years
matically.
this,
such installations by the
new
The
practically free of those major swings characteristic of
time when any repetitive task
may be carried out auto¬
Beyond
Union Gas;
its change¬
is
liquid
an
1957, based
date.
stocks,
our
50,000
than
more
new
at about
over
violent effect
common
gas
3.5 million
depends on the ratio of the
a
gas
utility lines will be serving
house heating customers by
on
the present rate of sales.
The Brooklyn
Company set its own estimate at the end of
Henderson
by fluctuating security dollars (com¬
precedented number of
1955 will be
remaining 25% of the industry's output in 1954
of
Thus,
natural
in
Natural
Ernest
fluc¬
greatly expanded whereas
levels.
low
one-season
extinct
market.
Underground fields, provides a con-,
venient solution to winter peak loads.
Early in 1954:
there were 167 underground storage fields in 17 states..
could (and did) produce
wealth represented
heavy
storage,
business by
were
■
of course, is the big increase in gas
House heating in 1954 continued to be ;
the industry's fastest growing markets—and am
of
one
during those years, have remained until recently at rela¬
approximately 25% of total sales of elec¬
tronic equipment.
systems
of
economy
'•
reason,
extremely
wealth, such as currency, bank deposits, government
bonds, etc., that portion of our "liquid wealth" which is
relatively stable.
The purchasing power of the nation is largely meas¬
ured by its total liquid wealth which constitutes to a
the
field of home entertainment, where
television, radio,
high-fidelity phonographs, and tape recorders last year
for
The
*
Electronic industries
was
value
our
'
,
heating sales.
"where¬
which
to
extent
percentage of
The
flhy
actually cre¬
necessary
'•
■
natural gas back in the ground.
mwKm
rise in
a
'
:
mii
secu¬
value of all common stocks to all other forms of
electronics
seas
'
gas
^
radio
control purposes
ac¬
have occurred
not
would
of
lack
wealth,
William H. Harrison
two
opment of electronic devices such
predictions for 1955
deflating a major segment of our potential
purchasing power.
During the past 15 years the total of currency, bank
deposits, government bonds and other "stable" liquid
circumstances,
any
commercial
averages
The
on
total
different transmission com- >
business has by no means reached the end
of its expansion.
New construction and facilities are
being added at the rate of $1 billion a year, a rate that is expected
to continue for at least the next .
three years.
And although giant pipelines may have ,
become almost commonplace, the industry is making t
huge investments in new phases of operation. Last year,,
for example, about $50 million was spent in putting r
The
an
Jones averages
industry
be judged from
that, in 1954, about 50%
output was for military
fact
its
averages,
was
in future years may
the
of
stock-market
large degree its potential purchasing power.
If this
liquid wealth is predominantly in common stocks, as
the case in 1929, a given change then in the Dow
will
absolute
peace
or
determining
of
Jones
that most
security prices, for I am
withal."
recent years than
is usually defined
$500
less
of
to
that
part
growth
most other
otherwise
grew
metropolitan area.
Yet by next year customers
Brooklyn Union Gas Company will be receiv¬
The
ing natural gas from two
panies.
enlarged reservoir of liquid
"spendable" wealth, which makes
possible many large purchases which
in 1954.
The
of
stock-market
II. HARRISON
electronics—which
of
electronics
total
million
Dow
convinced that the inflation in
the
on
emnloying vacuum tubes, tran¬
sistors, or comparable devices for
utilizing electrical energy in rela¬
tively small quantities. So defined,
from
the
little doubt
cent rise of
ates
exDansion
industrial
of
S.
booming and business indices
they do—sooner or later—when the
tivity, will be no exception.
This
prediction of growing sales and good
business is directly based on the re¬
to include all equipment
U.
by
be
can
the New
1952, natural gas lines had not reached
York
will be on the optimistic side.
My
prediction for the Hotel Industry, a
business that follows closely the
The United States has witnessed no more remarkable
the
set
Thursday, January 20, 1955.
•
Until
America
of
market
as
rity dollars resulting from
WILLIAM
the
stock
..
.
is
pace
President, International Tel. & Tel. Corporation
in
the
turning upward,
is the tariff policy.
example
Corporation
of
the subject.
economy
HENDERSON
Sheraton
hnd Financial Chronicle
develop ^into
1954's business negative
general picture of business reversed.
.
.
.
a
with
the
page
68
-
no
areas.
Continued
on
Volume 181
Number 5396
Continued
from
.
.
could be drilled before the
65
page
oil, this is about
1% of what would represent com-
in the search for
Canada's Oil Picture
,,
line
Sarnia
this
extension
to
of
the
2,200 wells
Toronto—although
step could, and I believe would, take place a year or
that
the
Edmonton
to
Montreal
may
take
quite an exercise of the imagination. But as inevitably as
water
seeks
find
must
its
its
level,
own
maximum
whether it be two hundred
thousand
miles
removed
Pipe
oil
Line,
from
distance
be
tically
less
for
1.9
than
cents
for
of
cost
capacity
the
of
Montreal
construction of
to
mu
™
seven years. The Pemdiscovery has needled the
exploration industry into
a
by
some
as
50%
total
Western
to have added as
the calculated
to
Canadian
keep
stand
at
over
is going to
depend in a very large degree on
its ability to absorb its Pembina,
its Sturgeon Lake and its future
discoveries and merge them into
in
general
the
future
of
channels
while
new
found.
In
markets
brief,
something
the
this.
like
the
oil
more
increasing
production
are
being
sequence
First,
is
you
practically independent of all out¬
side
for refined products
country.
Our refineries today are a credit
to us and, you will be glad to
know, are the most modern that
exist anywhere.
sources
Refineries
than doubled compared with
more
Among the quietly sensational
aspects of the oil industry growth
in this
tenton
country since the war, atmust
be
given to the
in
refinery
capacity.
increase
Canadian
over
40,
number
refineries
total
now
for
the second greatest
of any country this side
of the Iron Curtain, and represent
an
investment of
Our
refinery
gressed
$600 million.
over
capacity
has
far that today
so
the
across
Since Leduc the consumption of
petroleum products in Canada has
reserves
1953, which now
2.5 billion barrels.
But, to my mind, the profitable
operation of the producing oil in¬
dustry
with
up
size of the markets.
at the end of
as
markets, having
turn provide an
in
incentive to discover still
to
new
pro¬
we
a
increase
37%
States
during
in
the
Our consumption
show
of
an
1953
the
United
same
period.
for
1954 should
increase of 7%
and,
based
on
over
the
that
trend
of the last several years, estimates
show
will
that
the
increase
by
domestic
about
within the next five
Continued
are
or
on
market
one-third
six years.
page
69
mm
Canadian
one-third
of
capacity
in
the
com¬
refineries
the
with
area
-
a new
/'
actual
self-sufficiency
(<
;
_
difference it would make.
a
the
major Alberta field
mated
These
found,
find
to
"■
plant, which
is due for
1955, will be about
210,000'barrels per day.
•
Tit
can
readily be understood
what
markets.
been
incentive
an
a
v:
Canada is located there. The
in
equally startling
an
create
natural
a
Western
..
inasmuch as
refining
bined
in the
J
to..
or,
sending
is
area
total
the
whole
occur
plenty of oil, more than
of, in order to
dispose
can
penny...
distance.
same
Montreal
crude,
bina
carries
gallon,
for a
a
way,
the
postcard the
The
.
with
future
to
you
to
Ontario, a
1,775 miles—at a cost
another
outlet
discovery, in
ln ^ e Pa
Interprovincial
example,
every
.
bound
are
must find
67
Alberta
of
of about
pwsit
The
largest of them
entirely new oil-bearing zone,
a complete
geological departure from the discovery of prac-
remembered, pipeline transportation is one of the most ecoforms.
entire
the
was
it
nomic
of
significant
an
two
or
events
all. This exceptional
oil
and
most
turn out to be the
market,
which
much
post-Leduc development was the
recent discovery
of the prolific
Pembina oil field which may yet
than two thousand miles
more
from
geological
prairie oil travelling
reappraisal of primary objectives.
This
event,
along with
others
a
anticipate just under
the
of
(323)
record impact, will definitely result in
drilled and for the finding of more oil. It is esti¬
1953
number,
One
two before the Montreal extension,
In
were
1954 1 would
latter
To visualize
drilling.
plete
.
the
prairies
exhausted
be considered as
could
involve
Chronicle
The Commercial and Financial
.
.
of
crude oil supply, if prairie oil
our
could
this volume
.secure
business,
"7,0%
new
more
increase of
an
of
than
the
approximate current
production rate of 265.000 "
barrels
per
day for the three *
"prairie provinces. The attainment
of
-
over
"this
would
(
major
bring
in
economic
target
action
swift
one
a-benefit to the national oil
econ¬
exceeding the benefit con-'"
templated in The initial planning
omy
from
and
entry into the California "
an
Pacific Northwest markets.
; Over
the long' trend 4 this' is"
Virtually the only way in which
'.real-national
.
likely
be
to
self-sufficieucy is '
attained. No matter "
*
how
T
thoroughly the producers of
domestic
<
crude
saturate The
can
existing markets with their normal
-
i
;
growth, they will be receiving a
***«.
diminishing; share "of
national
the .-entire
.
unless
market
they can
crreak into the vast region covered
; by the Montreal refineries and the
great
-
industrial '*■ and -population
.
aj-ea they cover,
'f: There
•
is
also
,
another, angle to
we could im-
this and that is that
balance
by supplying Western Canada crude oil
prove
our
dver. $200
-
-
foreign
million
trade
a
-
year
Jo the markets .in the central
.provinces instead of importing the
'volume we do today; ;
Assured Supply-
■«
l',r
.
"
The' next question that arises
,-t^could
/
crude
our
is; "
suppliers *.
oil
stand the pace of this demand? -In :
my
«-
opinion,
T
yes.
It is true that at
time in the
no
past 90 years has the world ever
more
than approximately 13
had
years' supply of oil ahead in the
stop patching the
Let's
form of proven reserves. However,
equally true, there has
never
been
serious doubt about the abil¬
the oil industry to find
enough oil each year to keeo pace
with demand growth, and Canada
is one of the world's relatively
unscratched oil regions.
any
ity
:
of
We
are
in the fortunate position
of having
roughly 800,000 square
miles of prospective oil bearing
regions in Canada, and of these
less
than
5%
have been
explored
time.
Our
adequately
at
this
geology
presents
a
promising
challenge and at present about 185
million
America's
under
a
transportation system is operating
code of regulations that was
written in 1887. Since then the era
tric lines has
come
come
and
gone.
we
of the elec¬
Since then have
the automobile, the bus,
airplane. Still
originally
try to regulate
the truck, the
transportation
a new
generation of Traffic Managers
with scientific training
and
are
developing
are
a
professional
ap¬
techniques of trans¬
new
in step with our modern
techniques of manufacture and merchandising.
But in
doing
their heads
Let's
so
on
they
are
constantly bumping
these antiquated
give them
a
regulations.
chance to bring transporta¬
tion up to date. Let's stop
according to 1887 ideas.
Today
proach
portation that
patching
a
breeches and
give
us a
1955 model.
being prospected
geophysical
parties. Arising out of this it may
interest
you
to know
that
the
exploration record in 1954 has
acres
are
geologists
by
been
one
every
To
total
been
2)4
the
and
discovery of
gas
or
oil
days.
middle
of
last
year,
a
of
merely 10,000 wells have
sunk in the prairie provinces
in search of oil and gas. In terms
of
the
number
of
wells
which
Chesapeake and Ohio Railway
TERMINAL
TOWER,
worn-out
garment. Let's ask Congress to scrap our 1887
CLEVELAND
1,
OHIO
68
(324)
The Commercial and Financial
Chronicle
Continued from page
tion laboratory where the Standard Oil
Development
Company, our central research affiliate, will embark on
66
DAN
National Bank and Trust Company,
President, City
Oklahoma City, Okla.
In
I
reporting
shall
/irst mention
certain
over
known
devasting drought which swept
a
sections of the several
"The Southwest"
as
during the
1954.
in the extreme
year
Oklahoma, except
counties
Eastern
handle
counties,
suffered
in the region
states
has
West,
considerable
a
Pan¬
the
and
the
in
Continued
in
loss
the
grain sorghums,
Pasturage
v/as
cut
alfalfa.
short,
fair
but
cotton
wheat
and
made
a
rule, Oklahoma
the states produc¬
crops^
As
second in
ranks
ing wheat, but the past fall has been
dry that thousands of
so
been
dusted
in, and
I
am
germinated.
however,
dictation,
keted
do
W.
Dan
Hoean.
wheat
Sr.
that
heavy
a
entire
the
far have not
happy to say,
so
the
at
have
acres
of
time
has
snow
section
this
blan¬
where
we
business, and should be in time
save
the
greater
part
of
the
to
and give time for reseeding in
places where the wheat germinated and died.
In
normal
years,wheat pasture supplies fall and
spring feed for cattle and sheep.
On account of the
complete failure of this pasturage, farmers and ranch¬
already
have
men
sown,
been
forced
to
considerable
sell
portions
of
their cattle, but fortunately received fair prices from
purchasers from other states where feed was available.
It
has
overstocked
the
sales
other
and the funds brought in from
to, have had a tendency to relieve
problems which might have developed.
30
years
sponsored
and
Future
premiums
in
part
somewhat
was
with cattle,
referred
financial
Some
tion
developed that this section
now
the
and
youngsters
Oklahoma
movement
Farmers
these
the
ago
of
prizes
America
the
to
in
the
Clubs
to
point
of
giving
girls
a
and
Many
of
who
these
took
erstwhile
front
ranks
in
our
churches,
Legislature.
Terracing, contour farming, and soil conservation
have developed to such a
high degree that our farmers
and stockmen are in the
strongest positions they have
schools,
been
and
in
the
since
State
the
opening of the Indian Territory to
white settlement, in what is now the
State of Oklahoma.
As
1954 draws to a
close, I can say in spite of the
drought conditions, mentioned above, that the
year has
been quite
satisfactory businesswise, and sales during
the Christmas
holidays have been satisfactory.
We
are
still
hoping for
balanced
a
National
budget,
relief from double taxation on
dividends, and the privi¬
lege of deducting the amount of our
Federal income
tax as
we
can
any other operating expense.
and
of
more
better
its
generation, transmission and distribution facilities
exceeded $45,000,000 in 1953, and $61,000,000 in
19d4,
with an extimated $50,000,000 to be spent in 1955.
^epco's generating capacity has more than doubled in the
past six years. A second 100,000 kw steam unit recentU
began operating at Portsmouth Station, and in 1955, ad¬
ditional generating capacity will be available upon com¬
pletion of the 100,000 kw steam unit at Possum Point
and the 100,000 kw hydro-electric development on the
Roanoke River near Roanoke Rapids, North Carolina.
Adequate, dependable and economical power is avail¬
able for the expected expansion of existing plants and
new
industries. The Company's favorable progress and
growth reflects the progress and growth of the area it
serves, and its assurance of future prosperity also may
be translated into terms of economy of the "Top-of-theSouth."
Indications are that this growth will continue
cheaper
oil
of
out
the
ground.
is
being made in obtaining faster and
transportation of oil products. Storage
continually being increased to help reduce
in product requirements between summer
economical
more
facilities
are
fluctuations
and
winter, and a new method of storage, placing large
quantities of heating oil in abandoned quarries, already
in
is
I
use.
confident that in
am
the
whole
field
of
1.955
expand, multiplying the
the years
and
industrial
will
research
to follow,
continue
of our present natural
uses
to
re¬
and discovering new ones.
Many of the problems which confronted the oil in¬
dustry in 1954 will be carried over in whole or in part
into 1955. Among them is the intrusion of
government
price regulation into the production of natural gas
which, like oil, is a major source of energy for our
sources
nation.
We
believe
drastically curtail
strongly that
the
eventual
such regulation
availability
gas to consumers.
of
healthy
recognizes
domestic
there
that
oil
is
industry.
We
recognize,
for
million.
Chairman of the Board Standard Oil
Co. (New Jersey)
World demand for
petroleum products reached a rec¬
ord high in
1954, increasing almost 2% in the United
States
and
more
than
9%
abroad.
In
1955, Jersey
Standard economists
expect domestic consumption to
increase about
5%
and
sumption nearly 7%
foreign
oil
of
oil
resources
the
event
of
imports is of real
believe that
we
I
by
the
United
to
concern
lies
individual
year 1955
friendly
among
and
domestic
the
in
of
companies
the
oil
will evidence
a
cal
Steps
a
spare
capacity
conditions
and
apparently
for
will
time
some
to
operate
on
in¬
But
an
industry
have
expected
important
as
reasonable
a
demands, unforeseen
supplies
and
as
reserve
to
rectors
average
7
to
8%
for
'
will
the
1953
new
year are
for continued
economic progress in the free world.
In many
respects, 1954 has been
a
remarkable year. In the
i
light of
inventory adjustments
of
after the
expenditures,
growth of production
in other
of
rather
the
effects
t-ugeue
floliiiati
end
fighting in Korea, curtailment
government
world,
on
our
some
of
and
parts
might have
economy
expected.
justments took
Actually, major ad¬
place with extraor¬
dinary smoothness. While such major adjustments in the
economy have in the past brought riot
only decreased
production
prices,
but
1954
tional
Product
continuation
in
our
also
saw
of
declining employment and falling
falling off in the Gross Na¬
with relatively stable
prices and a
modest
a
but
high
personal
economy without
achievement
the
income.
on the
part of American
of the makers of our fiscal
part
The
adjustment
major dislocation represents
business and
policy.
Competition for the petroleum market became
intense
come
than
at
any
on
more
time since World War II. The out¬
was
expanded effort in research,
marketing,
other phases of the oil
business, and resulted in
improvements.
in
an
and
product
We
look
1955, rather than
to
for competition
to
remain
keen
diminish.
expenditures in our industry and others are
being made not alone to increase capacity but also to
improve quality, to reduce costs, and to
develop new
products. Capital and exploration
expenditures of Jer¬
sey and affiliated companies in
consolidation are now
expected to total $785,000,000 in 1954. Of
this, additions
to
property,
amount
in
to
plant
and
equipment
$625,000,000, while
the search
for
oil
other
are
estimated
to
expenditures made
are
expected to total $160,000,000.
1955, those expenditures may be even
greater.
In
Already under construction
or in
the planning stage
catalytic naphtha reforming units, seven desulphurization units for diesel
fuel, and an atomic radia¬
are
12
than in 1954.
marked
was
a
decrease
in
field,
comparatively
the
as
located
into
in
the
the
is
tric
expected
to
1955
Power Co.
and
pany's
area
indicate
diversification
velopment.
in
1954
of
New
its
in
the
produce and
shoes,
the
Power
razors
and
Company,
in
of
Virginia,
balanced
in
at
of
growth
Hampton
North
Carolina
markets
and
a
more
a
well-
7%
a
and
increase
than twice
used in 1947. About
as much electricity as was
25,000 electric customers were added
during the past year.
tricity per residential
The annual average
customer for
kilowatt-hours, and is expected
Vepco's
is
agriculture
output, and its maximum load for one hour
1,000,000 kilowatts for the first time, and cus¬
tomers used
hours in
through the
there
between
1954, Vepco's business showed about
power
to
1954
use
was
of elec¬
about 2,820
reach 3,000 kilowatt-
1955.
expansion
reflects
the
D.
Eisenhower,
the
in 1955.
planned
as
in
1954.
Her
first
September, 1953.
building a new, conventionally-
is also
production of components
Commission installations, non-sub¬
Energy
for
the
Navy,
and
work
commercial
now
contracts
being manufactured
as
contract
for
third
a
nuclear-powered
to
important, and probably attracting
General
Dynamics
the development and
vertical
Convair's
and
on
progress
takeoff
work
and
with
much
as
world-wide
a
scale,'
of the Convair Di¬
landing plane, the
its
supersonic
jet interceptor F-102.
all•:
an
an
delta-wing aircraft.
new
In
Electric and"
State and local
with
Roads,
wa3
Jan. 21.
on
Dwight
laid in
construction
entirely
Jack G. Holtzclaw
industry,
the "Top-of-the-South."
exceeded
basis.
corporation
Convair also made headlines with its
contract for
undisclosed number of
supersonic jet B-58 bombers,
of southwestern West Virginia.
With plenty of
loyal, skilled labor, decades of management-labor har¬
mony, a modern, fast-paced transportation network to
unequalled'ports
the
United Aircraft Corporation.
Finally, the Navy has announced that it
shortly will
negotiations with Electric Boat for the
design
weather
section
In
as
Pogo,
Virginia
nation's markets and to world
Mrs.
work
tea. Here,
northeastern
same
for
Groton includes the
vision's XFY-1
industrial groups, railroads and
other organizations is working for the economic devel¬
opment of its service area, which includes the greater
trade
at
were
chambers of commerce,
part
the
on
year
submarine, the
Boat
Nearly
electri¬
cooperation
same
period in
earnings through last
2,048,096 common shares
share
the
the
progressed
Atomic
and
de¬
the
through Sept. 30
the
submarine.
established
"Top-of-the-South,"
di-f
commence
equipment, chemicals, textiles,
nylon and plastics, pharmaceuticals,
paper,
rubber and food
products,
carpets,
of
the wind tunnel
-
cal
at
of
compared to $4.46 for the first nine
marine
continued
process
for
for
for
com¬
economic
plants
Per
such
great
the
board
earnings for the first nine'
figure
calculated
were
attention
locating
as
by
Wolf,"
work
for
increase.
Industries
economic
growth
?
increase of the
our
powered attack submarine for the Navy and is
engaged,'
as well, in submarine
repair and overhaul work. Other-
pros¬
come
a
the
by
Division, Groton, Conn.,
Electric
employ¬
show
in
any other compar¬
Dynamics history. Net income
This
point
keel plates
goods
recently
1953
high
Boat
"Sea
growth
favor-
a
on
higher than in
were
$6.17
were
Christened
which
the
at
•
and-'
launching of the world's first atomic-powered means
transport, the submarine "USS Nautilus," at our Elec¬
of
and
industries
area
production,
ment
continue
produc-
sales
Currently the corporation
work
reflected
General
outstanding
The
small
nondurable
new
that
the
slightly
year
there
30
then
While the level of
employment in durable
goods at the end of 1954 was
less
than -the
previous
in
$9,377,061.
was
Sept.
IIOLTZCLAW
witnessed
1954
months of
in,The company's area, and business in 1955 is
expected to be as good as, or perhaps somewhat better
the
Capital
1954
year
engaged
defense
"Nautilus" wil be
ready for her sea trials early
Meanwhile work on the second atomic
&
States
on
$12,392,834.
1953
perity
drastic
been
G.
will
rate.
at
the future is
period
were
•
-
President, Virginia Electric
The
1954
below
level, prospects for the
bright. The outlook is
J.
;
is
Dynamics
of
after United States and Canadian taxes
interruptions to normal
\ .'
United
confident
am
dividend to $1.00 voted
months of
able
un¬
for
•
con¬
apparently has
area
Oct. 28, 1954. -,
As I have already reported,
keenly competitive conditions expected
through 1955, the outlook for Jersey Stand¬
ard's earnings
is for a continued favorable level of
profits. Jersey's operating affiliates have
reported that
they expect employment., to remain about the same as
v
in
quarterly
with the
1954.
Hopkins
Jay
fidence
the
possible military erquireExcess capacity is costly to the
industry. I am
convinced, however, that there is sufficient ability and
good judgment within the industry to deal with the
problem wisely.
in
course,
military and com-:
mercial aircraft, submarines, guided
missiles, and nuclear and electronic products. My con- <.
ments.
Even
the
General
earnings
industry
meet
of
government
I
able
John
condition
the' oil
as
capacity
spare
an¬
major factor in the fis¬
a
wide
a
tion,
where the industry is able to
supply more products than
the customers want to
buy, of course, presents problems.
should
with
long-range basis.
a
in
more
under
A
come.-
was
decided that such spending will con¬
to be of primary importance
liberal foreign trade
policy would, we think, contribute
to the continuance of our
present very healthy economy
in the United States.
In
1954, the industry had a substantial margin of
same
million
$923
of
firm
—
million under negotiation.
spending, of
as
our
intent
of
tinue
trend toward"
toward
at
backlog
contracts,
—
letters
planning
and
hindering the movement of
nations.
corporation's
Defense
tinues
con¬
good busi¬
in
President,
orders
and
estimated
producers but
use
the
other $410
foreign
assures
30
unfilled
The problem of
emergency.
relaxation of the roadblocks
1954.
over
Stated
Sept.
With
hope that the
goods
home
at
an
solution
a
ness
judgment
dustry.
con¬
Although general business activity
in
of
orders
to maintain
EUGENE HOLMAN
As
a
serious repercussions abroad.
Development of foreign oil
in
&
Dynamics Corporation
During 1954 General Dynamics Corporation's partici¬
in the defense production program increased
with net sales: for the year exceeding $600
imposition of legislative restrictions on oil im¬
ports into the United States would adversely affect the
long-range security of our country and would have
servation
HOPKINS
Board
pation
added
reserves
the
sharply
that
supplies by American companies contributes toward
JAY
of
General
Jersey
too,
diversified.
JOHN
could
substitute
no
well
Chairman
.
Other important problems relate to oil
imports.
Standard
be
to
natural
^
v
Thursday, January 20, 1955
.
construction program for addi¬
The Company's
area.
.
tional
being made in
locating oil, drilling
for
the
and
is
also
progress
equipment
taking
Similar progress
Associa¬
4-H
promote
boys
organizations.
are
to
Bankers
technical
methods
wells, and
production of corn,
and
of
investigations to find
of producing oil products.
ways
the
the outlook for business in our field,
on
series
a
IIOGAN
W.
.
-
addition, Convair is in the forefront of the effort
develop practical atomic-powered aircraft.v
to
tion
Produc¬
is
bardier
also
During
an
of
1954
atomic
nuclear
San
continuing
Convair's
on
trainers.
Convair
reactor
in
built
and
connection
propulsion
for
new
developmental
guided missiles
and
on
placed
with
aircraft.
Diego, Fort Worth, Pomona
clude
and
navigator-bom¬
in
the
Other
and
projects
Daingerfield
production
the overhaul
and
of the B-36s.
operation
development
programs
at
in¬
for
modernization
Development work continues
systems and other military items.
on
electronic
Canadair
Limited, our Canadian subsidiary, is now
engaged in preliminary tooling and
engineering for pro¬
duction of the maritime
reconnaissance version
Bristol
is
of
Britannia for the
anticipated that
a
will be
ready for review and study in
Meanwhile
Star)
and
Montreal
Sabres
production
F-86E
plant
will
be
Sabre
with
ordered
of
jet
the
1955.
T-33
jet trainers (Silver
fighters continues at the
possibility
by the RCAF.
that
/
additional
Canadair
Continued
in
the
Royal Canadian Air Force. It
mock-up of this four motor plane
on
is
page
en-
70
Number 5396
Volume 181
.
The Commercial and Financial Chronicle
;
.
tory of a nation's energy require¬
ments shows that new sources of
Continued from page 67
energy
Canada's Oil Picture
bring
developments.
new
is today
industry
this
meet
geared
to
market.
new
look
The last piece for
the
complex
us
jig-saw
it
at
through the spectacles
business, of factory
of
science
or
home, of health or sickness, of
work
Petrochemical Industry
The
(325)
or
play, of past or future,
or
get an amazing sight.
Leduc,
Canada had two
you
to fit into
pattern
of
chemical
of
Before
petro¬
with an invest¬
around $4 million, turn¬
plants,
indulge in any story
petroleum industry in Can¬
cannot
of the
Whether
you
worth
some
oil
natural
or
are
chemicals,
scores
4
nearly
all
for
an
impressive
modern
by
dozen
try, anti-freeze, detergents, phar¬
which
of
imported,
with
applications
industrial
of
fed
three
over
formerly
were
and
gas.
producing
These make
catalogue
living —
germicides, insecticides, fertilizers,
These plants protective coverings for indus¬
$275 million,
maceuticals,
wares,
food
plastics
for
house¬
perfume
wrappers,
Continued
fabrications into hundreds of
better gasolines that you
and
have been obtaining of late.
on
page
I
!
f
am
v
have read diligently all
advertisements
put
out
by
sure
you
the
each company;
sult
this
of
add
to
ing out two or three products. To¬
industry.
less than eight years later,
the industry has two dozen plants
without reference to the
ada today
new
ment
chemical
I
Canada's oil and gas is the petro¬
Gasolines
New
items.
day,
to
I
am sure as a re¬
have
you
been
able
vocabulary of
your
su¬
perlatives in a way you never be¬
lieved possible; but I am also sure
that after reading them all and
comparing their claims, you find
yourself confused.
However, notwithstanding !this,
some
important
improvements
have been perfected in our gaso¬
lines
the
with
benefit
resultant
a
to
Some peo¬
motoring public.
ple fall into the error of believ¬
ing all gasolines are pretty much
the
This
same.
is
so—there
not
important
differences, but insofar as
the
power
characteristics or octane
number is concerned, all the new
refineries of today are producing
differences,
are
and
greatly improved product over
some years backk.
a
that of
From
a
performance standpoint,
today's gasoline is superior in sev¬
eral major respects. It has quicker
starting and warm-up characteris¬
tics;
it is
highly refined prod¬
a
will
that
uct
clean
for
worked
carefuly
the
keep
engine
long time; and it has
a
volatility
out
qualities to make the engine's full
available at all times. Most
power
important is its increase in latent
to where it now has 50%
power
25
than
more
30
to
years
ago—
gallons do the work of three
formerly—and surprising perhaps
two
you, at a f.o.b. refinery price
essentially the same as that of the
to
product 25-30 years ago.
Continued research is going on
to
greater improve¬
gasolines and fur¬
improvements will be forth¬
still
effect
in
ments
ther
Ivory is one of the oldest soaps in the world
brand
regular
around
87
but
88,
or
with their
engines with a
better, need the
grade fuel with
cars,
your
Procter & Gamble's
to
motor
and
"old'*'
principles
product really
forward to the
in terms of 9,
10
ratio in the next five or six years,
and
this being so, you can be as¬
still
of
sured
foresee
higher
the day
when
octanes.
I
100 octane
be making its ap¬
pearance on the market and you
will be driving your 10-to-l ratio
will
gasoline
engine
Street with
Yonge
up
tankful
the
of
high
octane
a
gas
into aeroplanes.
brought on by
research, competition and the im¬
provement in motor car engines,
will, it is believed, continue un¬
that
today
The
octane
goes
are
grow
these: Never let
an
old—and always look
development of
new ones.
Ivory Soap, for example, has been kept young
and
11-to-l compression
possibly
growth and progress.
r*
The basic
industry is said
car
thinking
be
growing for
time and time
of
over
one
of the nation's most highly
Gleem
toothpaste,
of the great new
have
won
on
nationwide acceptance almost overnight
—also in the face of stiff
race
competition.
Although Procter & Gamble is 118 years old, more
than 50%
of its household business now comes from
It is
come,
This
require an
million to build
for the
being planned
estimated $355
and
will cover
some
not
lines.
eral
If everything goes as
expected by it, the
Company hopes to
Trans-Canada
build the first
stage of its main line to Winnipeg
in
1955, completing the rest in
1956.
"This additional
will
be
of Eastern
come
not
source
of energy
valuable to the economy
Canada. If the gas does
competitive, I do
disturb the mar¬
fuel oil. The whole his¬
in and is
think it will
ket for
employees
continuing
natural gas
2;200 miles in a direct line,
including the mileage of lat¬
so many, many years.
progress,
in turn, has made it
a
leader in
Profit-Sharing Plans and other benefits by which
our
Canada system now
will
growth and
new ones
enjoy such
providing Guaranteed Employment, Pension and
The Trans-
of Alberta.
products and research to develop
possible for the Company to become
fast ma¬
proposal in definitive form
reserves
products like
that Procter & Gamble has been able to
of the oil industry has
in 1954, the first large-scale
utilization of the vast
.
through this combination of "rejuvenation"
of older
Gas
Natural
Closely allied with this
.
kinds!
the other hand, is typical
Procter & Gamble products which
.
growing need for better and better detergents of all
steady, healthy growth for
competitive fields.
old
years
Tide, Cheer, Dreft and others developed to meet the
75 years—has been improved
again to help maintain its position
leadership in
products less than 10
abated for the next 10 years.
turing
Gleem, the newest
new
high compression
ratio of 8-to-l or
rich diet of firstfive or six octane
points higher.
The
..
great toothpaste success. Both illustrate the principles which govern
of gasoline
you put in your car today prob¬
ably
has an
octane rating of
The
.
your
coming.
Procter & Gamble
69
may
success.
share directly in the Company's
-
71
70
The Commercial and Financial Chronicle
(326)
AUGUST
68
The
RCAF.
for the
mutual
savings banks of the country
...
unit
est
continue
lines
duction
turn
to
electric
out
for
motors
become the
to
This merger
of
both
firms
of
organizations
the diversification
to
this
tions and
in
the
at
In
October
the
were
made
us
of
one
shares
voted
to
Dec.
on
redeem
17, 1954.
into
and
one
one-twentieth
shares
of
preferred share.
holders of over 99%
converted
a
their
shares
into
of
the
the
the
of
cause
further
defense
but
diversification
relating
to
the
shares
of
uses
■
atomic
JANSEN
Partner, White, Weld
&
HUNT
stock
icies
of
prices
the
the
over
Federal
investment, while
a
past
year.
Government
revival
of
funds
in
the economy provided
ness to invest.
a
for
ap¬
preciation possibilities, and inflation
protection attracted buyers to com¬
stocks
and
from
away
popular.;,
Hunt
At
business
are
the
grant
(
There
about 1955
In
is
good
reason
for
not
"only
long term.
spite of the :good business
outlook, a cautious in¬
policy seems to be the prudent course at this
The Dow-Jones
Averages at the 400 level reflect
only the;recovery which has taken
place but much
vestment
time.
not
of what
tween
may
bond
New
to
them
the
occur
yields
in the
and
near
the
future.
return
The
on
spread
common
York
of
the
a
series
of
to
moves
keep
the
U.
-
strated
an
and
a
IRVING M. IVES
of
tic;
the third quarter of 1954
and began
to rise in the fourth
quarter.
The
rate of increase has
been very sharp
to date. I would not
expect this in¬
crease to continue at
the same rate.
If this should
happen, in my opinion
it would tend to
indicate an inven¬
tory
accumulation
in
customers'
hands which
might
to
a
the
drying
year.
eventually lead
up of demand later in
Indications
are
for
a
rounding off of the
rate of
increase,
but continued
good demand for alloy
products in general. This de¬
mand should continue
during the first part of 1955
and,
barring work stoppages throughout the
Joel
which
Hunter
steel
year.
this
cooperation
Administration's
new
years
of
tire
of
total
auto¬
Lee R. Jackson
vehicle
production for 1955
show increases of approximately 7%
increases
These
1954.
over
will
be
reflected
by
cor¬
a
responding rise in total shipments of original equipment
tires by the industry.
vehicles
Automotive
the
increase by
approximately
53,000,000 to more than 55,000,000. This fact together
with the fact that the number of vehicles requiring re¬
placement tires during 1955 will be the largest in history,
points to extremely encouraging business prospects for
independent tire dealers.
than
more
on
during
2,000,000
road
1955,
will
from
Our most recent estimates for 1955
are
that the indus¬
try will ship 49,000,000 passenger car replacement tires
compared with 46,900,000 in 1954, and 8,100,000 truck
bus replacement tires as compared with .7,850,000
as
and
last year.
also foresee
We
these
All
enlarged market for batteries and
an
consistent
accessories
with
increased
the
add up
factors
to
sale
of
great potential
a
in which there will be more customers
needing
what the independent tire dealer has to sell.
tires.
market
more
of
-;
;;
But
only the hard-selling, imaginative and aggressive
is
going to get his share of this increasing
business. Every dealer will have his opportunity. If he
dealer
works hard at the job of improving his service, of doing
better and better merchandising job, and if he main¬
tains balanced
inventories large enough to have the
a
BREWSTER; JENNINGS
President, Socony-Vacuum Oil Co., Inc.
demand
for petroleum products
in
the
States, including exports, is expected to increase
about 3.5% in 1955 to the highest level in history, the
Although
United
the
oil
is
in
the
these
columns
two
of
free,
a
Since
prosper¬
overriding problems facing
.incoming Administration. This
been
accomplished with
of dislocation.
The
and
the
assure
tax
and
taken
healthy, expanding
a
of
reduction
revisions
actions
many
elimination
the
by
a
the
con¬
reductions
are
the
Administration
At
economy.
the
same
time, needed programs for individual security have been
broadened and developed.
I
point
to
these
accomplishments
to
underline
the
basic
philosophy of the present Republican Administra¬
tion—to provide for an
expanding economy and to meet
the needs of our
people with a minimum of govern¬
mental intervention
and
the maximum individual free¬
dom.
In his 7,800-word State of the Union
address, President
Eisenhower etched the blueprint for the
Administration's
continuing
home.
programs
They
military
the
establishment
international
At
for peace abroad and
prosperity at
include
home,
works and
relations
the
maintenance
and
to
President
the
meet
of
a
powerful
strengthening
the
referred
to
Communist
of
our
threat.
agriculture, public
natural
resources, small business, taxes, edu¬
cation, housing, health, labor, subversion, and govern¬
ment organization among others.
The
numerous
proposals which
the
President
gamut
various
Democrat-controlled
committees,
the
of
ma¬
15%
an
in
and
answer
is two-fold:
(1) A good deal of the money oil
companies are investing in proper¬
B. Brewster
Jennings
ties, plants and equipment
spent
to
meet
stiffening
is
being
quality
competition in a buyers' market created by the indus¬
try's vast postwar increase in output. Many of the new
refining units are being built not to process more
oil,
but
make
to
(2) In
any
companies
present
better
products.
industry
must
act
provide equipment and
need
vital and dynamic
as
in
considerations.
response
to
Money
must
sources
of
be
petroleum,
as
future
as
well
as
spent
now
to
supply
we
expect to
several
years
hence. The producing end of the
business demands the longest look down the road.
To
develop crude oil production in a virgin area, for ex¬
ample, normally takes 10 to 15 years.
It
oil
essential
is
that the industry continue to
develop
facilities, whatever the future may hold.
major conflict between Russia and the West,
reserves
Barring
a
and
which there is
the
next
some
several
reason
solidate its position
to believe will
not
occur
in
side will work to con¬
by improving and strengthening the
years,
each
economy of its orbit. The further development of in¬
expensive mechanical energy, which depends largely en
the availability and use of oil, will be a
key factor in
these efforts. Because
placed
before the Congress will be followed
by. subsequent de¬
tailed recommendations.
They must run the
the
The
ex¬
tax
some
refining
probably
something
more in crude oil
producibility, why
the need for such an outlay?
has
Federal
industry currently has
of
capacity
minimum
irksome
of
the
excess
economy at home without resort
to the
inflationary policies as one of
the
Irving M. Ives
exceed
Capital expenditures for oil explora¬
production, transportation, re¬
fining and marketing totaled some
$4 billion in 1954; they probably will
approximate
that
figure
in
1955.
Eisenhower, I- mentioned
stabilization
to
tion,
prior to the inauguration
ago,
continue
demand.
legislative
Congress.
General
industry's ability to supply these
products, will
fate
ous
to
decline began in the last
quar¬
ter of 1953, reached a
low point in
estimates
Current
motive
-
the
the
among
a
and
for
independent
dealers during the year ahead.
proposals during the two sessions of
penditures,
good illustration of this
characteris¬
Congress,
to
trols,
a
as
dealing with
To this 84th
extent
economy has demon¬
unlimited ability to
expand and in a peaceful
was
1955
business for the rubber in¬
out more
B.
forthcoming will determine
standards
fifty-four
for
estimates
- a
right products on hand at all times, he will succeed in
making 1955 a banner year.
,
strong
,
about
Stainless steel, tool steel and other
alloy steel business
has traditionally been more
volatile than
tonnage steel
business. Nineteen
privileges that are
they compete in
Union message, made a
appeal for cooperation. The
stocks
HUNTER
banks
which
Democrat-controlled Congress.
President, in his State of the
world this should continue.
JOEL
savings
'
the
be¬
President, Crucible Steel Company of
America
other
may now function.
,
high employ¬
automotive
therefore,
\ "
dustry
S. Senator from New York
reasonable to expect
under control.
A
population, industrialization,
living increase. The American
increased
for
latest
the midway mark of his
Administration, President
Eisenhower finds himself in the
position of
would be reflected in
higher interest
rates and both bonds and
stocks could
undergo a period
of unsettlement as
they adjust to changed conditions.
For the longer
future, however, there is little reason for
of
are
At
boom
as
mutual
branch
with
Writing
tightening of credit
concern
of
they
same
'
purchases.
concern
may
in
and
institutions
has been narrowed and there
is greater risk because of
the high
leyel of stock prices. The recent upsurge in
speculation is an additional reason for
selectivity in new
The Administration
gives indications of
the excessive use of credit and it is
bonds
as
year.
HON.
proved
confidence
pur¬
bonds will be rel¬
operate
in
surpris¬
underway should con¬
but also for the
the
serving the public.
,
tinue.
relatively
the
accorded
auto-
building, steel, and other key industries all
anticipating a high level of output during the
year.
The
readjustment in business
ingly mild and the recovery now
of
Firestone
with
1954 indicate in¬
creased
production
of automotive
vehicles, a rise in the number of
passenger cars, trucks and buses in
use, and
a
greater market for re¬
placement tires. These factors spell
resources
branches
mobile,
post-Korean
funds
other states, to
bring the
regulation* of mutual savings bank expansion into line
with
provisions applicable to - other' financial institu¬
tions. •- They feel that the record
amply justifies the
prospects for
bright with
,
real
on
Savings bankers hope that the year 1955 will witness
long last a liberalization of their authority to
at
'
•
course
exists for the services
in the communities in which
For the most
part,
the start of
1955,
year.
available, savings bank
corporate and tax-exempt
that
fixed
buying was concentrated in a rela¬
tively limited number of good quality
stocks.
Only recently have second¬
ary
and low-priced stocks become
E. Jansen
readily
at
Company
expansion of suburban
other factors all add up
the
and
Our
of the nation's mutual
savings banks
$30 billion mark this year,, it will constitute
an
increase of two and a half times in the resources
of the;mutual
savings banking system since 1^39. This
notable expansion has demonstrated the keen
demand
cross
stock
income securities.
the
When
general public have all
recog¬
nized the merits of common
mon
of
mortgage portfolios
dollar invested.
Rubber
compared
their
for
&
industry in 1955 is very
looking ahead with confi¬
present wealth of the country, its
needs
ihMeid
years,
unless the Treasury should offer a new
long-term marketable bond issue at an attractive yield
and
High current yields,
investment
atively limited.
Holdings of Government
register a further small decline in 1955,
pen¬
the
influences
recent
in
at
to
their
expense per
With mortgages
willing¬
Banks, insurance companies,
sion
funds, investment trusts,
These
Tire
enthusiasm.
transportation
and,
larger need for tires.'
a
administer
chases
the future
of
all
attrative
most
low
sharp rise in com¬
Easy money pol¬
provided
the
into
materially higher rate of return than
bonds to experienced lenders like mu¬
savings banks, which make loans on a large scale
tual
confidence
investment.
the
provide
high grade
and
Co., New York City
Two factors have contributed
to the
mon
down
flowing
institutions.
gages
do
E.
hold
to
prevailing conditions. Through careful selection
mortgages and through favoring loans guaranteed
by the Veterans\Administration or insured by the Fed¬
eral
Housing Administration, the quality of the ex¬
panding mortgage portfolios of these banks is being
kept up to conservative savings bank standards. Mort¬
'
V
JACKSON
rubber
We
ment,
living
current
under
'
■
of
the
for
and
The
of
energy.
t
funds
estate
only
an
aggressive interest in
emphasis on developments
peacetime, industrial
tend
of
out
outlook
good.
are
likely to offset each other, rea«»u«»
suiting in a rate of deposit gain for
savings banks about nearly the same as last
Mutual savings banks find first mortgages
Dec.
common
also
and
will
thrift
balance of the preferred shares for
redemption.
plans for the future call for continued effort in
Our
less
income
leaving
common,
small
somewhat
volume
corpo¬
preferred
R.
dence
branches
new
other
save
cre¬
on
of
stimulate
to
be
good
yardstick"—will prevail.
L.
number of savings banks
a
the
On
program.
Congress, it is hoped that the
counsel of the President—"let the general
in
as
Administration's
issues which face the 84th
our
deposit gains. On
hand, the recent tendency
of the public to spend more and to
for each
The
by
establishment
tend
These shares
convertible, prior to the close of business
1954,
the
of
now
majority party in the
required for the realization
is
The
the
opera¬
the
same
Senate
President, The Firestone
and
the leaders
Thus has been
"Dynamics For Defense."
directors
ration's preferred
6,
already widespread
our
time
the
part
any
the
dends
which added
one
of defense goods.
the concept of
ated
of
same
the production
logical
a
about
year,
in
1954,
when
they increased
about
$1.9 billion. Payment of extra divi¬
Convair Division.
was
the legislative situation thus presents
imponderables. The important factor.in this picture
House and
wise
Deposits in mutual savings banks
register another good gain
30, following earlier approval
the plan by the directors of both groups. The
joining
of the two
background,
should
April
on
the
many
of
year
landmark in their growth.
effected by the vote of shareowners
was
another
confi¬
are
is that the cooperation of the
Turning
from
the production
phases of General
Dynamics to the corporate activities, an historic event
in our development in 1954 was the merging of Con¬
solidated Vultee Aircraft Corporation with and into the
corporation
be
Resources of these institutions by mid-year should cross
the $30 billion mark, a new historic
variety of purposes, including shipboard uses.
a
will
1955
jority leadership, and the membership of both Houses
of .the Congress.
With the 1956 Presidential election in
of healthy growth
and of expanded service to the communities they serve.
Dynamic Division, Bayonne, N. J., old¬
the General Dynamics operation, the pro¬
of
that
dent
Electro
At the
HILEFELD
President, Savings Banks Trust Co., New York City
design and construction of guided missiles
in
to
.Thursday, January 20, 1955
■
i
.
Continued jrom page
eafied
■
nize
of
a
all
common
men
we
and many other nations
recog¬
interest in
satisfying the material needs
throughout the free world, we are likely to
Continued
on
page
72
.
Number 5396 <rf, The
Volume 181
Continued
from
69
page
Commercial and Financial Chronicle
•
•
-
*
,
Doremus &
,
,
bottles, telephone sets, TV lead-in
cables, and an endless list of prod¬
the
ucts.
Company
&
I foresee
velopment
industry
continuing great de¬
a
of
in
the
petrochemical
Canada, supplying
a
news
Company, 120 Broadway, New
York City, advertising and public
relations firm, it is announced by
William
H.
tremendous impetus to the devel¬
of
opment of
formerly
and mul¬
tiplying the value and the bene¬
fits
our economy
oil
of
and
I believe
do
Particularly
gas.
natural gas en¬
once
ters the eastern markets at
petitive
rate
of
wave
should
it
expansion in
com¬
a
bring
a
petro¬
our
chemical development.
back
the
over
"Herald
Chairman
Jr.,
Mr.
Haxall
was
with
the
Tribune"
New
since
prior to that held the
York
1951
same
War
Club
Wandell
current
gram
spent
past
few
partment
is
first
this:
Vice-Presi¬
speaker
20.
Mr.
on
the
pro¬
53
are
which
Chemical
Corn
now
State
with
Colgate
-
Joins F. S.
Peet Co.
held
be
Exchange
associated with
Schirmer,
Co.,
50
Congress
Street, members of the New York
and Boston Stock Exchanges. He
was formerly for many years with
now
Atherton
Co.,
&
Chace, Whiteside & Warren.
Moseley
at
the
Bank,
BOSTON,
sell
is
now
Moseley
&
Mass.—Renouf
connected
Co.,
50
In the past
Federated
Rus¬
F.
with
(Special
S.
p.m
Mr. Russell
was
to
Managem't Adds]
The Financial Chronicle)
WORCESTER,
St.
Congress
Mass.
—
with
Management Corporation, 21 Elm
Street.
modern
The
world will continue to move,
lit¬
erally, on a river of oil.
Petro¬
leum products
play a ; part in
nearly
for
article we require
daily existence and for a
every
our
national
international
and
Backstage with
de¬
fense, which, I am afraid, will be
required for years to come.
The
conclusion
second
is
THE
that
the growth of the oil industry in
Canada will be limited only by
the
FORWARD
LOOK
already 1955's
resourcefulness of those inter¬
ested in it in
overcoming the same
obstacles that beset every indus¬
try competing in a world-wide
market.
That
big automobile style news!
_:
resourcefulness
has
al¬
ready been demonstrated in deal¬
with
ing
host
a
of
major
prob¬
lems in the past seven years, and
all of us in the industry will wel¬
the
come
lems
as
know
challenge of new prob¬
they come along, for we
we
SCREEN
STAR WILLIAM
LUNDIGAN
is host on
Chrysler Corporation's full-hour TV shows, "Shower of
Stars"
and
with him
"Climax!"—Thursdays
backstage.
on
CBS-TV. Come
find their solution.
can
Barclay Adds to Staff
(Special to The Financial Chronicle)
CHICAGO, 111.—Lorenz C. Voth
has
been
added
to
the
of
staff
Barclay Investment Co., 39 South
Salle Street.
La
With Julien Collins Co.
(Special to The Financial Chronicle)
111. — Arthur H.
become
affiliated
Collins & Company,.
CHICAGO,
Schomp
with
has
Julien
South
105
bers
of
change.
Salle
La
the
"THE
Midwest
Ex¬
Stock
on
Schomp was previ¬
the Northern Trust
Mr.
ously with
Company.
the road
.
.
is the
back
top
smartest
of THE
wrap-around windshield
and it gives you
.
the greatest eye-level
It's the only windshield that's fully
visibility of all!
swept
WINDSHIELD
HORIZON
NEW
FORWARD LOOK
Street, mem¬
and bottom!"
Hornblower & Weeks Add
(Special to The Financial Chronicle)
HI.
CHICAGO,
Kimble
has
been
—
Harrison R.
added
staff of Hornblower &
to
the
Weeks, 134r
South La Salle Street.
With A. G. Edwards
(Special to The Financial Chronicle)
HI.—Louise
QUINCY,
-
affiliated with A.
has become
:.
Craft
B.
G.
Son, 336 Main Street.
Edwards &
"THE BEST FUN IN SHOW BUSINESS
Joins Gibbs & Co.
likes.
Being a part of THE
1955 Chrysler Corporation
The Financial Chronicle)
(Special to
WORCESTER, Mass. —Peter S.
Chiavaras
wtih
has
become
affiliated
Gibbs
&
With
FORWARD LOOK
everybody
"EVERYBODY'S
PowerFlite Range
the
have just
to
wanting—in style, performance and features you
go
cars seem
what America's motorists have been
is being with a hit, a show
is like that. The long, low lines of the
to
appeal
to
everybody. The
cars
the smoothest
FORWARD
just can't get in other cars at any price!"
TALKING,
Selector
on
TOO,
about
LOOK
the
the instrument panel next
ignition key! Flick it into position—and off
with
you
automatic transmission. THE
is full of exclusives!"
Blyth & Co.
Co., 507 Main St.
(Special to The Financial Chronicle)
BOSTON,
Mass.
J.
Richard
—
Corbin has been added to the staff
of
Co., Inc., 75 Federal
Blyth &
Street.
Eaton & Howard Adds
(Special to The Financial Chronicle) *
BOSTON, Mass.
Greene
has
been
staff of Eaton
—
Richard H.
added
to
the
&
Howard, Incor¬
porated, 24 Federal Street.
"JUST LOOK AT THEM!
The 1955 Plymouth, Dodge, DeSoto,
Chrysler and Imperial. See THE FORWARD LOOK at your dealer's
now!"
*
Joins First Boston
(Special to
BOSTON,
The
Financial
Mass. — Parker L.
joined the staff of
Corporation, 75
Federal Street.
DODGE
•
•
DESOTO
•
CHRYSLER
•
IMPERIAL
Chronicle)
Monroe II has
The First Boston
PLYMOUTH
*
CHRYSLER CORPORATION
Copyright 1956, Chrysler Corporation
«
...
THE
FORWARD
Set Chrptler Corporation's great
new
Vincent
F. Murphy is now with Federated
White, Weld & Co.
floor, at 5:30
Financial Chronicle)
(Special to The Financial Chronicle)
30 Broad Street, New York, N. Y.,
Palmolive
&
Street.
10th
of
is
Harris S.
—
Keller
Mooney's
invited to the meet¬
will
is
to The
BOSTON, Mass.—Roy P. Smith
(Special to The Financial Chronicle)
Yett
Schirmer, Atherton
(Special
Staff
to
BOSTON, Mass.
Securities.'"
Guests
ing,
Street.
Keller Adds
topic will be "A Trustee and Mu¬
nicipal
years, we can draw two major
conclusions about the future.
-: The
Jan.
Fitton is with
With
have
educational
year's
on
68 Devonshire
;
The Financial Chronicle)
to
BOSTON, Mass. — Richard H.
Palmer, Pollacchi &
Co., 84 State Street.
Anson N.
—
with Investors Plan¬
ning Corporation of New England,
the fiduciary deas
now
71
Palmer, Pollacchi
(Special
Women's
will
Mooney,
dent in charge of
the Army during
II, Mr. Haxall
M.
Bond
York
New
of
and
posi¬
tions with the New .York "Journal
of Commerce," from 1949-51. Af¬
ter five years in
Municipal
and Exchange Bank,
financial writer
a
The
With
to The Financial Chronicle)
BOSTON, Mass.
Municipal Women
three years in the advertising de¬
In closing I would say this, that
looking
Long,
Board.
columnist
World
Conclusion
,
the
(Special
Smith is
W. Haxall has joined
department of Doremus
Boiling
With Investors Planning
Wandell Mooney
To Address N, Y.
B. W. Haxall With
Canada's Oil Picture
.,
(327)
LOOK
TVshows~Thursdajs, CBS-TV, 8:30 F,M, EST,
72
The Commercial and Financial Chronicle
(323)
Continued from page
scale
the world has ever khown.
to the U. S. oil industry is
the Supreme Court's recent split decision which asserts
the
authority of the Federal Power Commission to
regulate the price paid to producers who sell natural
gas to interstate transmission lines.
Quite aside from the effect price regulation may have
Qn natural gas supply and distribution, and thus on con¬
sumers
the most serious question involved is one of
surpassing anything
A
If gas can be regulated by virtue of its use in
principle
utility
why
everything
not
utility
uses,
whether fuel oil or coal, automotive vehicles, business
machines or what-have-you? From a long-range stand¬
public
a
a
point. it is a question that could affect many businesses.
It.strikes at the very roots of our free economy.
Supreme Court's decision is an interpretation of
the Natural Gas Act, a law passed by Congress. Congress
The
law, and there is every
Court's
ruling will be introduced in the next session. <
the
has
to change the
power
indication that legislation seeking relief from the
E.
On
FRED JOHNSON
Okla.
president. The Fourth National Bank of Tulsa,
Southwest, with the entire area pushing ahead
records in the expansion of population, industry
In the
new
over-all
a'd
certainly is every reason
there
economy,
future with optimism. We have
just closed 1954 on an upward trend, despite the fact the
•year brought a slight recession in the first half, and that
some trend should continue on a reasonable, sound basis
•1l ring the next 12 months.
Easing of \ international tensions seems probable to
some extent during 1955, with a possible improvement in
the
to forecast
today
that could
world trade conditions
fluence for
be
exert
beneficial in¬
a
while at the same time there can
our own government's arms and
industry,
critical
no
let-up of
military programs in the foreseeable future.
Employ¬
ment should remain high over the entire nation, and
in the Southwest,
particularly
the
end
the
of
Year at
New
all-time
an
wind
will
probably
up
level.
record
The
general atmosphere of confidence that prevails
today, in contrast to the pessimism that prevailed gen¬
erally at the opening of last year, is in itself a tribute
to the soundness of the present market and should be
one
of the decisive factors in maintaining that same
condition during 1955.
The over-all picture for 1955, then, should be one that
While it may bring spectacular gains for the nation,
will
billion
of
the other hand, private risk capital now holds
than $40 billion in conventional mortgages on one-
more
to-four
family homes without government guaranty of
kind.
any
Some economists
small
the
undoubtedly be on the plus side with the South¬
in particular, enjoying substantial progress
recently have raised the question of
A recent report by
equities and possible defaults.
VA
repaid
that
shows
in full
the
at
all
instalments
buying, while 40%
rent.
As one small example of how mortgage debt is being
retired, I might point out that more than 500 families
or
are
month
make
gages at The
pay
final
the
home
debt-free
clear.
The
number of
mort¬
is
steadily accelerating
because the nearly 6,000 home buyers who satisfied their
mortgages at our bank last year are only among the first
gage
owners
coming under the amortization plan
So
far
started in
we
1936.
future outlook is concerned, the risk in¬
making home mortgage loans depends, of
course, on the nation's economy.
But all indications
point to stability and a continued high and increasing
level of production during the next several years.
De¬
mand for homes, and the ability of families to
buy them,
will contribute importantly to this high rate of
produc¬
volved
tion.
as
in
Conservative estimates set construction at $40 bil¬
lion
during 1955,
National
nearly
of
$370
11%
or
Product
Liberal
as
rate of
but
the expected
billion.
construction is estimated at $15
1954.
serve
of
Of
billion,
a
Gross
this, dwelling
13% rise above
sound
mortgage credit will continue to
important tool in helping maintain a high
an
production.
Such credit, soundly applied against
ability to pay, decidedly is not inflation¬
some economists assert. Production, and produc¬
the borrower's
ary, as
tion
alone, is the most effective
tion.
But
cannot
we
have
the public is provided the
goods and services which
against infla¬
weapon
maximum
means
production
unless
with which to buy the
produced.
are
Chairman
Industries
Economists should not be alarmed by the fact that the
nation's
homes
home
stands at
now
debt
mortgage
This represents
all-time
an
one-to-four-family
on
high of $74.6 billion.
less than 21% of the present rate
Gross National Product and
is
a sum
of
$1.4 billion less than the amount of
direct
obligations
of
the
Federal
Government in the hands of the pub¬
lic which will mature in the next
12 months.
exactly
Also, it happens to equal
the
Federal
gage debt is
being paid off.
Regular
payments on mortgage principal and
interest now amount to only approx¬
imately 2.6% of all spendable in¬
This is
come.
the 2.7%
in
C.
■u/ior»e
Johnson
of
which
virtually the
same
as
income in 1939—a year
mortgage
debt
not
was
considered excessive.
Those
home
mortgage debt
the population is
thing like
30
a
whb question the rise
in
apparently overlook the fact that
increasing at
million
a
rapid rate—some¬
very
increase
in
the
These people have to be housed.
But of
is
has
that
Gross National
since 1940.
in. 1940 to
Total
Product
national income
Home mortgage debt is
than
duction
the
before
ever
hardship.
years.
importance
than
doubled
from $81
billion
can
growing because
now
buy homes without financial
that
high employment with high incomes, plus
we
policies
pro¬
have
now
ever
the
most
liberal
mortgage
devised.
Although mortgage lending is
on
a
far
liberal
more
faced
and
In
our
over
400
GALE
Vice
Johnson
with
greater
the
nation's
research
health
have
opportunities
or
research
scientists
have found
we
the
of
the nation's health and,
stances,
of
we
stand
momentous
on
acterized most of 1954. Since
this
past
to
Although there
many
that, it
this
&
Johnson's
of
to
were
wounds
Business is probably close to the end
the long period of
inventory
liquidation and, therefore, this de¬
pressing factor has probably been
of
eliminated.
have
the
past,
has
the
the
process of
healing. In
of dressings
sticking
W. Johnson
Robert
presented
a
serious
surgical
causing considerable pain
to the patient and delaying
recovery. For the first time
in the long history of surgical dressings after
genera¬
tions of failure, we have solved this important problem.
We plan to market this product
early in 1955.
problem,
For the future
tures
has
nary
forcasts
continue
reach
of
self-amortizing
families
in
every
mortgage
income
has
bracket.
Government insurance and
guaranty of certain
types
of home
of-
a
mortgages also has helped make the purchase
home easier by permitting lenders to
write
larger
mortgages in ratio to value than allowed
by state laws
or other
regulations.
However,
this government
the dangers that
The Veterans
some
insurance
does
economists would have
Administration and
the
not
us
Federal
hold
believe.
Housing
been
that
note
nated
we
will continue
our
the
1954 will
in the past by the untold millions of dollars devoted
American
industry,
will
bring
us
to
these
great
objectives.
During the past
major plants
two
Francisco—one at
Johnson & Johnson has opened
West Coast, both near San
Menlo Park for surgical dressings and
year,
on
the
baby products, and a Personal Products Corporation
plant as well as a new Ethicon Sutures Laboratory plant
in
Sunnyvale, Calif.
In
Chicago
a
major
constructed
a
new
laboratory.
Foreign plant construction ranged from
mill
at
ments
San* Jose
at
Mexico
dos
City
Mados,
Brazil,
and
new
a
since
that
early part
forces
be
last
the
of
1955.
It
prelimi¬
and
year,
slow
contraction
is
depressing
business which
significant in 1955.
less
will
significant
to
domi¬
At the same time, business
activity will be influenced
by the continued expansion in construction
expenditures.
State
local
and
governments
are
expected to increase
schools and highways, although
their expansion may not offset the
decrease anticipated
in Federal expenditures. Under the
impetus of the new
Housing Act, residential construction is expected to rise
above the level reached in 1954.
While housing starts
may not match the all-time record in
1950, 1955 should
be another good year.
their
spending for
new
have
been
goods and services
surveys
optimistic
about
be
can
the
last
expenditures
and
year,
prelimi¬
that
they are relatively
Expenditures
for
non¬
goods show signs of increasing, and
the
durable consumers'
it
increasing their
over
indicate
to
seem
expected
future.
that
further
a
increase
will
take
place in expenditures for services. At the
present time,
it
is
belived
that
the
market
for
Since
year.
automobiles
will
great part of the
a
be
cur¬
recovery can be attributed to the current
high rate
production in the automobile
industry, trends in the
of
the
new
automobiles
volume
of
should
be watched
carefully.
maintained, the economy
depressing influence.
sales
a
is
likely to fluctuate in
rates
not
to
a
new
plant
research
plaster
enlarge¬
center
at
Montreal, Canada.
spite of the great expansion of Johnson & Johnson
facilities during 1954. more is being planned for 1955.
The 1955 program includes a new Ethicon Sutures office,
laboratories, and production plant to be constructed in
Bridge water Township, N. J. Ortho Pharmaceutical Cor¬
poration will build a laboratory, office, and plant at
of bank loans
seasonal
pattern. In¬
expected to remain relatively close
since the monetary authorities are not
current levels
likely to change existing monetary policies unless busi¬
ness expands or
contracts, sharply. The wholesale
price
level may show some
tendency to decline as the result
of lower agricultural
prices, but the prices of consumers'
goods are likely to show little change.
1955 is, therefore,
likely to be a year of stability at
a level
slightly above or below the one reached in 1954.
Businessmen
watch
that
would
do
developments
situation
well, however,
in
to continue to
international field because
the
continues
to
be
explosive.
DWIGHT
P.
JOYCE
President, The Glidden Company
;The
1955 promises to be
year
vigorous for the
Company
is
basic
A
engaged
than
number of factors
more
industies
which have just drawn to
a
in
even
prosperous and
which The Glidden
the
good
12
months
close.
contribute to
this
belief, one of which is the steady
improvement in the entire business
situation
in
the
past
three
to
four
months.
Glidden
is
sharing in this better¬
ment, as evidenced
operations
for
cember
first
—
company's
by the fact that
November
two
fiscal
new
and
months
year
De¬
of
—
produced
a
satisfactory gain
corresponding months of
previous year.
Based
dustries
projections
on
in
which
for
Glidden's
the
have
over
the
the
the
in¬
various
manufacturing divisions operate, the
improvement
far
so
can
Dwig'at P. Joyce
be expected
to continue through the current
year.
For example, the paint
an
In
normal
a
be
can
efforts in research
bringing new health products of the highest
quality in mass production to the people at the most
economical prices. In these vast fields there is presented
not only great humanitarian
challenge, but business op¬
portunity of unprecedented proportion. Continued in¬
telligent and inspired research, supported in the future
by
downward
indicate
the
in
in
and
Personal Products
the
long-term
Military expenditures
probably reached a stable
also
Gale
F.
Johnston
level, although at a rate somewhat
higher
than
had
originally
been
anticipated. The trend of plant and equipment
expendi¬
to
discovery
to
led
activity
inventory liquidation and the
in military expenditures.
terest
be made
stick
not
*
recovery.
industrial
circumstances, the volume
within
The
pay.
in
reduction
is
proved the greatest single factor in
putting good homes
to
permanent
major factors which
decline
be subject to
Under these
a
which will
in the
signs of
many
generally believed
too early to claim that
a
two
the
were
will
revolutionary
surgical dressing for burns and other
wound
business
year,
was
was
was
The
If
to
enlargement was made at the
surgical dressings and baby products plant. In Chicopee,
Georgia, a large bleaching mill is under construction and
at Milltown, N. J., Chicopee
Manufacturing Corporation
opened a new laboratory. At North Brunswick, N. J.,
basis than at any time in the
past, the loans are sound.
Tenders take a realistic view of the
borrower's ability
it
recovery,
of
practical solutions.
year
normal seasonal recovery
that the 1953-54 recession had ended.
sale
in other in¬
may
a
usually takes place in the last part of the
analysts were cautious about stating
the threshhold
Specifically, mention
Johnson
with
Concern
Board,
rent
technicians,
answer
problems
of the
the last quarter of 1954, industrial
activity began
rise, thus ending the period of stability which char¬
good in the coming
centers
and
JOHNSTON
In
to
nary
Johnson
&
F.
Chairman
Mercantile Trust Co., St. Louis, Mo.
for
well-being.
own
important
as
people
more
This is because the nation's high rate of
means
fact
credit
more
more
rose
15
past
estimated $300 billion in 1954.
an
comfort
of
It must be remembered that mort¬
Board,
JOHNSON
obligations. Never before has there been an equal under¬
standing of the manifold problems of aging, nutrition,
metabolism, psychiatry, and personal
Government's
expenditures in fiscal 1952-53.
the
concerned
before
never
President, The Dime Savings Bank of Brooklyn
of
WOOD
in
good neighbor.
Consumers
ROBERT
facilities
-
It is con¬
responsibilities to its employees for steady
employment, high earnings, and ideal working condi¬
tions, and is ever vigilant in being a good citizen and a
their mort¬
on
Dime Savings Bank of Brooklyn and thus
their homes free and
own
payments
plant
a
increasing employment and prosperity.
ment,
loans still out¬
on
standing.
Although total mortgage debt on homes is at an alltime high, the obligations are spread among a far greater
number of people than at any time in the past.
It is
estimated that 15 years ago, about 60% of America's
families were renters and only 40% owned or were buy¬
ing homes. Today, it is the other way around; 60% own
major business and industrial fields.
GEORGE C. JOHNSON
Johnson,
scious of its
western area,
in
&
New Jersey home-grown in¬
stitution, continued to add millions to the many states
wherein its plants are now situated in
capital invest¬
by that agency. The original face amount of the
paid in full loans was $3.2 billion. An additional $3 bil¬
lion has been paid off in
Thursday, January 20, 1953
-
had
veterans
1954,
of
end
Johnson
500,000 of the 3,600,000 loans guar¬
some
.
Toronto, Canada, and additions to
Montreal and England are planned.
anteed
every
to
$30
some
loans, but the government does not stand
responsible for this full amount. For example, the VA
guarantees only a maximum of $7,500 on any loan.
for deep concern
cause
underwritten
home mortgage
in the next decade economic development on a
gee
have
Administration
70
.
industry in which Glidden is
important factor, is set to produce and sell 6% more
goods,
1954.
year,
in
both
Volume
unit
of
has picked
and
dollar
industrial
up
volume, than it did in
paints, the laggards of last
smartly in line with he improvement
in general business conditions.
This trend is continuing.
Continued
on
page
74
Volume 181
Number 5396
.
.
.
(329)
The Commercial and Financial Chronicle
conditions which
Continued from -first page
uneasiness
As
and
when
We See
It
large, the current mood
almost
are
at
causing
a
time
everybody
rather
than
more
building, bridge
construction
and since elections
like.
the
and
is
It
is
at
the
into
operation are exceeding Returns in the bond market
coming up next year about expectations so far as revenue
are
no
longer adequate, and
that period also.
is concerned, but it is still
investors
in
There is a fly or two in the much too soon to arrive at
large numbers
year,
are
ointment, to be
have turned to the stock
is
ket. Such substantial and
sure.
There any settled judgment about
gainsaying the fact that these issues on the basis of
concern is
growing about the actual experience. In any
degree in which the powers event, it is as much the vol¬
no
that be continue to force feed
of these issues
ume
of whom
some
Meanwhile
rank .and
the
attract
to
are
suaded to take risks that
ease
per¬
the
in
this
deceptive
general situation
tends to conceal from view
are
that
tinued
buying could
mar¬
con¬
hardly
the
most
home
speculative sort of ing the rich do not come to
building
traced to this
course.
system which exults in soak¬
Abundant funds for
islation.
A
same
are
to be view. Various restrictions and
source,
other adverse actions of gov¬
of
ernment tend to escape
good deal of the
tremendous
construction
only in such
surge
could
a
in
carry
These
tion
public
which
on
monetary sit¬
must
atte:nr
things
concern
cause
in the presence
even
uation.
the
are
of wide¬
spread "prosperity."
are
housing construction. Uneasi¬ coming on the market as any¬
ness is not
allayed by the per¬ thing else which causes some
sistent tend e n c y -to make eyebrows to rise.
There is, however, another
credit more and more avail¬
able to potential home owners and different aspect of the
on
easier and easier
pterins. current situation which gives
The
of
cry
about
the
housing
humanists
is
us
forbetter
the
need
with
met
minder that this is
serious
of
a
a" re¬
very
real
of
source
found
is
outlook for
not in the
rate
The
concern.
uneasiness
this
business
high
activity in
immediately
in the next
a
we live,
and the months
arbitrarily to ahead, or even
supply a theoretical need year or two. It rather grows
without reference to ability out of reflections about the
to pay for what is supplied is basic nature of the economic
always a dangerous proced¬ situation that has been cre¬
ure, one which in the end can ated by all of our paternal¬
do, and often in the past has ism, not to say socialism, and
done more harm than good. which
apparently is to be
nursed
along in much the
The Stock Market
same way
for as long in the
; The general behavior of the future as one
may readily see.
stock market in recent weeks That is to
say it is not the rel¬
has at times given rise to un¬
atively nearby future but the
easiness, too. • There is still
longer term future which dis¬
some
difference
of opinion
turbs us.
Some day or other
about the basic nature of re¬
world in which
that to proceed
-There is
cent events.
evi¬
no
fiddler
the
will
have
merican construction, with its constantly improv¬
ing tools and techniques, is progressively raising
the economic standards of the Americas and of free countries
around the world.
Morrison-Knudsen Company, Inc.
Contractors and Engineers
24 SUBSIDIARY CONSTRUCTION AND ENGINEERING
COMPANIES OPERATING IN
,
'
15 COUNTRIES
'"V-
be
to
dence of
"absorption of undue paid. Of that we are sure,
as the poli¬
and when that day comes our
ticians are so likely to charge.
position may not be nearly so
In fact, the market is in, ex¬
pleasant as most observers
ceptional degree still a cash
amount of credit"
believe
market.
There have been
(principal subsidiary)
Including its three foreign subsidiaries
situation
current
our
THE H. K. FERGUSON COMPANY
re¬
to be.
ports of unwise degree of "inand-out"
tions
a
without* its
never
disturbing aspects—but facts
on
this
ful
or
subject
are
particularly enlighten¬
the
worry concerns more
effect of
chological
in
psy¬
larly
what
those
of
such
events
recent
bring in the
weeks
way
things.
as
may
of "investi¬
whatever
and
have
the
past two
flooded
been
have
easiness
in
some
certain
truly
un¬
quarters
enormous
flow of
borrowed funds into the cof¬
fers
of
ernments,
local
and
state
gov¬
in
our
itself.
ation
into
which
develop¬
der
large
ments with the funds thus ac¬
vestor
from
to
assure
more
the
are
in¬
than is obtained
operation
of
revenue
the
but this
as
yet,
policy of trying
business
the
activity
pressure
up
and credit
money
business stream
full
seen
presen¬
tation of General Mills'
Report,
"Mr. Winkle
1954 Annual
Returns."
Representing
a new
technique of financial reporting, "Mr. Winkle
Returns"
Informal
was
the feature of General Mills 1954
Regional Stockholders' Meetings. It has
been made available
showing before
other
to
your
you
without charge for
luncheon club, civic,
or
groups.
not
can
or
in the
felt
in
credit
or
not yet
Already
sponsible
this
policy
enough.
for
a
proving
is
It
is
number
Add less
your
inquiries
to:
Film
Departmcut
General Mills, Inc.
400 Second Avenue South
un¬
measure.
the monetary
issues
wages,
An indefinite continu¬
of
projects in question. Many of pervasive
these so-called
than two
more
end of fail to have effects not
not in a yet
the
and
Rip is die star of the eight minute film
judgment, nearly spent
force
to
agencies
position
its
down
basic inflation has not
particularly into by driving
quired and which
still
or
upward movements
prices and
the hands of various
plan
driven
FINANCIAL REPORTING?
coun¬
is
All this has resulted
decades.
in
is the
this
and
money
held down for
legislation in Washington.
of
years,
with
in drastic
source
having during
been
has
HAVE TO DO WITH
of "deal"
sort
been
we
gations" and possibly adverse
Another
WHAT DOES RIP VAN WINKLE
Deal,
the
to
particu¬ equivalent. Interest rates
and
market,
quick look
a
New
Thanks
boom try
a
quite possible later crash
the
take
us
beneath the surface of
not plenti¬ World War II, the Fair Deal,
Generally speaking, the
and
Let
by the rank ahd fife—
situation
ing.
Beneath the Surface
speculative transac¬
a
The end good deal that needs correc¬
the immediate outlook quite unsuitable.
extraordinarily promising. may be further adverse leg¬ tion. The full effects of a tax
bottoip of the
usually
cheerful, tending to be more More often than not such of stock market developments
than usually confident of this these facilities as have come which are a source of concern.
is
fail
file,
agrees
for road
are
even
73
re¬
of
Minneapolis J. Miuh.
The Commercial and Financial Chronicle
(330)
74
constantly seeking
Continued jrom page 72
At the same time,
,
,
also
*
the building boom, a strong
Accelerated
segment
creating
for the past two years, will continue its
records in 1955, with resultant benefits to
of the economy
thrust to
new
In
S. popula¬
tion this year of 163,000,000 people, some 7,000,000 more
than the August, 1953 estimates.
These continued in¬
creases, superimposed on the fact that American families
are living far better today than
they did several years
ago offer strong potential for producers of food products,
among
which Glidden is active through its Durkee
1954, indicate a U.
Estimates in November,
Division.
improvement in this field is
Famous Foods
idea of the
Some
in
increased
volt transmission lines and related facilities.
will also help in
this year
payments
last
of
modest
a
The
way.
1%
of
two-thirds
from
to
than
more
With
1.30%
found
been
Copper
If
sumer
a
ability
has
years
in
retUrn'
been
X
X
.
also
has
It
construction in
Baltimore, Chicago, Toronto, Montreal and other plant
locations will have a total value of over $16,000,000. The
creation of additional manufacturing facilities aie also
completed
facilities
New
under
or
planned for the current year, particularly for the paint
division. A new paint plant is contemplated for the Los
with additions to other facilities
tegic marketing areas now under consideration.
Angeles
area,
Research
still further in the next
research work
pand our
months.
last year
and we plan to ex¬
expenditures
development
and
the largest in Glidden history
were
12
National
Bank
City,
Kansas
extremely good for the New
banking outlook is
prime rate but, within the last two
months, demand has increased in all
directions and the present rate of
interest
to
good
borrowers
seems
secure.
generally have had to make
adjustments and remain ex¬
Banks
many
tremely flexible in their policies
the
Just a little over 18
months ago, loan demand was large
and
the
prime rate looked very
secure at 3V4%.
The new long term
past few years.
government bonds were sell¬
ing at 99 and the longer term 2%-s
at
under
90.
Yet, because of the
3V4%
C.
j
large credit demand and government
policies, few banks took ad¬
Kemper
vantage of their investment opportunities which not only
excellent yield on the bonds
handsome profit on the present market.
Federal Reserve policy played an important role in this
change. Their policy was changed from one of restraint
would have given them an
purchased, but
a
to one of "active ease."
the
the
to
aluminum
aluminum
market.
generally
are
rather of the opinion that real
estate credit has been stretched to the limit with
low down payment government loans.
down
of
these
terms
might result in overbuilding and
wholesale foreclosure.
to
30-year,
Further breaking
Consumer credit has also zoomed
Of first importance
In
all
in
users
addition
production
production
mary
United
1
factors
in
of full
of
its
Henry J.
to 54 inches in width, and represents
increase in foil production
capacity.
rolling
up
a new
completely
completed
and
in operation
in
the
more
middle
western
and
DONALD
President,
<&
Electric
level
encouraging,
is
mass
helping
1954.
business and a
general lowering of inventories earlier in the year, credit
demand for replenishment of stocks should be increas¬
ingly active.
Then, there should be an added credit
ucts
from
research
involve increased outlay
by manufacturers, distributors and the
consumer, there¬
by increasing the demand for credit. Our
population is
center
marked shift toward quality in the demand for living
Continuing heavy demand for commercial and public
tion
1955
was
are
of
our
the
Another
It
is
S.
Kennedy
anticipated
during 1955.
The
million,
r
to
this
good
sustained
very
ing
construction
$29 million.
^
expenditures-for -1954;
I95& ii£ $31
Generating facilities under construction, aggre¬
consumer,
the
Furthermore, capital
ex¬
the
by
1954 level which will cause continu¬
the
for
industry
many
types
of mo¬
,
best
$rend will. continue
The budget * fox
brass
tors, generators, switchboards and other heavy electrical
served
.
near
demand
equipment.
The
mill
>
and
copper
industry, also is expected to increase its
pansion programs by gas and electric utilities should be
*
growth
important
power
be 30 billion kwh. above 1954.
cities of the nation during
.
company's
amounted
that
•
in sending the total new construc¬
the $39.5 billion level as com¬
1955 to
production in 1955 to some 500 billion kwh., which will
364 such firms
Donald
activity in
electric
agencies, located in the ter¬
by the Company and
expanded their facil¬
ities. Many diversified small indus¬
tries make up this healthy growth.
ritory
schools and other public build¬
pared with the record $37 billion anticipated in 1954, and
the total of $35.2 billion in 1953.
in
service
ten
material
the number of housing starts would
This results from the fact that there has been
should all play a part
1954
among
should be even bigger in terms of quality
ings, shopping centers for expanding suburban com¬
munities, and greatly increased appropriations for roads,
tribution
for
resulting
the
residential building market in the new
construction, including
growing
business
automotive industry's
units, all of which make use of copper or brass.
*"
During 1954, 289 new commercial
and industrial establishments, or dis¬
Christmas retail
lines, will need a large amount of credit to
their expanding needs.
Many of the new prod¬
,<
even
Oklahoma City, which
ranked
business
stabilize the economy.
pipe
an
Company
of
prospects for
near
area,
automobiles, for which our indus¬
radiators, ignition systems
parts as
appliances and equipment varying from electric toasters,
ranges and washing machines to central air conditioning
in the nation.
general
that, bar¬
space—from the basic shelter needs of the small post¬
war
family to the requirement of greater conveniences
for the larger families of 1955. Also the building boom
can
be expected
to sustain the demand for builder's
hardware, fixtures, and for the many types of electrical
Oklahoma Gas and Electric
Company provides electric
to a population of
approximately one million
people in Oklahoma and Western Arkansas. The area
served is an important
part of the great Southwest,
which is one of the
strong growth
The
)
■
encouraging are the predictions of an even
construction boom in the new year than last
year.' It is indicated that residential building will set
the pace as a partial result of the Housing Act of 1954.
Estimates are for a total of 1,300,000 housing starts in
1955 as compared with the expected total of 1,180,000
starts in 1854 and the 1,100,000 in 1953. This will repre¬
sent an increase of about $1.-3 billion in 1955 residential
building.
"
service
areas
*
facts, it is plainly evident
years.
indicate.
KENNEDY
Gas
come
,
Equally
•
*
'
S.
Oklahoma
reports of borrowers and up to now^ccjllections on all
types of installment loans are quite prompt. There is no
finance
on
efficient basis and to
keep pace with the
markets for sheet and foil.
a new project will put the output with the largest new copper pro->
into production this year in the
par
requirements than
sheet and foil
a'reas
companies
and
■
manufacturers
serve
the
demand
other
year
50%
facility of
territory during
the
financing of waterworks, electrical
P™?' building of all types, including roads, public
buildings, schools, hospitals and churches. The transpor¬
tation industry,
including railroads, air lines, truck lines
a
in-.J956, this modern
eastern
Kennedy
.
this
type to be built in the United States in the past several
years—on the Ohio River at
Ravenswood, West Virginia.
new
plant will enable the company to
to
And the actual
will begin construc¬
rftajor facility,
first
M.
greater
a
mill—the
James
there will be an abundance 1
available in 1955 and in the years ahead.
copper
best
At the Permanent'e foil plant a new
high-speed foil mill
was placed in
operation. This mill is capable of produc¬
we
a
units, thus making 1955 one of the
large-volume
new
In mill fabricating, the
Corporation recently began
production of aluminum forgings at Erie, Pennsylvania.
fe^r weeks
are
well as brass for automotive trim,
hub caps and decorative applications, are a major source
of encouragement to copper and brass fabricators.
The
introduction of many attractive new models seems likely
to boost 1955 car sales 10% over 1954, to 5.7 million
For Kaiser Aluminum, 1954 has been a
year of con¬
tinuing expansion in metal capacity and mill fabricating ?
facilities.
During the year the Corporation completed
final phases of a three-year
$230,000,000 expansion pro¬
gram which raised its primary metal capacity to over
800,000,000 pounds annually, or almost 30% of total U. S.
primary aluminum capacity.
tion of still another
mines
try supplies much copper for
Kaiser
acceleratee further research and devel¬
next
the
copper
of these
view
and
opment, and this in turn will lead to
applications of aluminum.
the
1955
stepped up.
copper
Production plans for
are
With an assured supply stimulating more active de¬
mand, there is every indication that the aluminum in¬
dustry stands today on the threshold of a new phase of
growth. Assurance of adequate supply is the dynamic
Within
suf¬
ring strikes of long duration,
in
to
on
slated
ducer
its
and
severe
was
capacity rate by
United States.
use.
ing foil
Throughout
raw
of that unit
the
economy
of
tons
In
metals
strikes
a
v
beerk, practically
contributing
factor that will
when
—
placed
annually to
the domestic production before the end of the year and
the supply of foreign copper also is improving. In Chile,
the oqfput is expanding while in Canada a recent an¬
nouncement indicates that attainment in the near future :
;
other
to
will be more
this demand.
1954
American
New
000
During
aluminum pri¬
^facilities
States have
will continue
copper
end-users.
all
industries.
the past three .years,
ex¬
means
absence of strikes,
an
fabricators—there
on
are
—
This
year.
Chile
in
and
such
and
—
expected to add approximately 150,-
and
thereby
uses
ficient copper to satisfy the needs of
»
the
excellent
the
any
closely watched\ Banks and finance
generally are requiring [satisfactory credit
Because of
of
supply will be steadily
tendency is being
helped
to
Incorporated
period of labor
construction
equal to meet
here
quantity and form
to satisfy requirements of the largest
mass
of
supply
strain
the face of growing demand, alumi¬
became available last year to
Because of discount Ipuses and unusual con¬
prevailing among automobile distributors, this
has
Brass
industries
boom
iLVen ,,during
is aluminum's
payments.
question but what consumer credit
production
and
mass
consumption,
power
a
than
num
huge proportions with easier terms and lower down
ditions
v-
industry.
retarded.
Bankers
Board,
complete availability. After several
years of shortages and allocations in
When
be checked -for
varied less than
living costs and
which is a good
thing for banks. A greater number of Americans are
more dependent on a stable dollar everyday.
Life insur¬
ance, savings bonds, savings deposits and any other fixed
income securities are attractive only where inflation is
inflation seems to
the purchasing power of the dollar has
one cent the
past year. Consequently,
overhead are becoming more stabilized
present,
variety
a
automotive,
strong. Granted
generally expected stability of business conditions for
1955, there exist .certain special conditions of significance
fiscal
For
strong
growing
finished 1954 with both deposits
and earnings higher than 1953. After quite a downward
trend in loans tne first nine months of the year, there
was discussion of
a lowering of the
R.
present
other
City Bankers
and
extended
an
pecting
to expect a continuation of the
reason
unique combination of properties
Mo.
Banks generally
Year.
There is every
Aluminum's consistent
President, Association of Reserve
for
the
the
relation
& Irust Co.,
is
electric
Year.
New
KAISER
J.
President & Chairman of the
KEMPER
C.
R.
City
the
KENNEDY
excellent year
terial
Kaiser Aluminum & Chemical Corp.
doubled.
President,
The
in stra¬
in
well
fare
M.
that demand for copper
its physical
expanded
should
HENRY
1
properties to take
care of anticipated
growth in the food; chemicals-pig¬
ments-metals, naval stores and the chemurgy divisions,
as well as in paints and varnishes.
;
banks
and
1955
there
an
as
deposits of most banks should continue to increase
save,
consolidating its
already strong position in a number of industries, with¬
drawing from activities and products which were minor
in their overall importance and expanding into fields
that show promise of producing a highly satisfactory
recent
in
con¬
income, the development of new industry sparked
by increased research and the urge of the population to
greater-than-5% gain.
Glidden
With expanding population, high
to loan.
reve¬
peace in the
mining, smelting and refining plants, 1955 should
for this country's copper and brass
rolling mill industry.
Most of the leading industries *
which specify copper as a basic ma¬
be
popular in the past, probably will continue as the
institutions with greater
From present indications,
Glidden's volume for this division is expected to show
in
copper
trend seems to be toward larger
ahead of 1953.
10%
we
JAMES
institutions,
products will show an increase of 5% in sales at
the wholesale level over their record 1954 volume, which
about 4%
over
and
area
Chairman & Chief Executive Officer, Revere
1955.
thereby strengthening their posi¬
tion
and
increasing the bank's loaning power.
This
should continue into the New Year. Mergers, which have
store
was
the
picking up, it looks good for loaning
Many banks have taken advantage of
the excellent demand for stocks to sell additional shares
their
increase of
an
Home
1954.
building continues strong
expect to gain 8,000 new customers
during 1955, which is the same as the increase last year.
The Company now serves 305,000 customers.
in
demand
in
money
in
Company forecasts
for 1955
nues
again changed
Treasury Bill yields have
rates
money
year*
recently and longer term governments have declined in
price.
estimates that manufacturers of grocery
in recent official
fall
the
demand
credit backlog.
a
direction
suppliers.
paint producers and other
tax
gate 285,000 kw, which compares with 456,000 kw now
in service. The budget also includes 138 miles of 161,000 -
better standard of living which will
for credit in the New Year.
a
the
stimulate
Thursday, January 20, 1955
....
industry is
business
in
\
of the
economic health
obviously tied
conditions.
rolling?
the present outlook
building markets and from
analysis of the major components of the Gross Na¬
tional Product, an increase in total
be looked for in
from
rise
an
1955.
have
level
estimated
of about $356
been
predictions
from
may
billion for
1955, which would mean a
to the peak level reached in
1955 Gross National
record
business activity can
The Gross National Product
1954 to about $365 billion in
return
the
and brass
in closely with general
Judging from
important, industrial and
an
copper
1953.
economic
In fact, there
authorities
Product may even exceed
set in 1953 and reach $370 billion.
that
the
Number 5396
Volume 181"
%
.
FRED
KOONTZ
RAYMOND
-"
'
,p
;
Incorporated
Diebold
President,
1
*
.
believe that the
We
Diebold, Incorporated, is engaged in the manufacture
of
in the
;
systems equipment and record
line of Office
wide
a
-
protection equipment.
bank
of
turer
We
are
protective
also the largest manufac¬
bank
including
equipment,
is
about
brought
by
-
and
shop-being
constructed.
Wherever State Banking regulations
new
-
permit,
bank
is inevitably a new
erected, wherever a
shopping center is established.
new
1954. This design
was
in
This
Raymond C. Koontz
our
fifty-four
office
equipment
duced several
including
was
few
highly competitive year in
industry.
During
1954
of
card
in
records
small
floor
has
product
companies,
there is
a
been
well
utilities
received
and
need for such
by
vent
inflation,
is
customer
the
of
use
buy and
to
buy
extremely
however, that where
advantages
our
that
and
savings
we
that
he
will
we
We expect
our
ensure
adequate
sible.
capacity
factory
makes
reasonably
continue to
can
of
small
now
operate
eliminated
has
prompt delivery pos¬
Under these conditions of quick
retailer
of
supplies
and
because
on
and have all the advantages of stock
replenishment, a
conservative stocks
continuously fresh.
we
sell.
on
page
76
the
to
buy.
In other
We
customer
and Trust
have
to
money
intelligent
words,
BOARD
introduced
products
new
over-all business in 1955 to
Company of Chicago
through
exceed
OF
and
DIRECTORS
de¬
are
WALTER
intelligent and aggressive sales program.
an
the
move
increased
shortages
inventory-wise
sales figures.
Continued,
demonstrate
signed to meet customer needs and requirements and
prepared for
will
The
our
wd* get
that
Continental Illinois National Bank
1955.
carefully.
can
equipment, he does have the
summary,
competition to
chemicals,
depressed
or
..\
.
retailers
and prompt delivery in practically all the lines
selling will still produce business.
In
excited
changes in
with
traditional
been'
field is extremely competitive and the
our
inclined
found,
business in
our
The
textiles.
and
Policy
to
where
We expect these new
device.
products to substantially improve
Business in
agencies,
governmental
a
insurance
banks,
the
Just a
products of these enlarged capacities will serve to pre¬
This
areas.
and
danger
has
It
examples of this increased capacity would include
electronics
products in the field of filing devices
new
One
turning about and piling them up again."
Fred Lazarus, Jr.
be
autos, steel, household appliances, petroleum,
intro¬
we
goods
user
\
should
sales
in
J. CUMMINGS
Chairman
%;
1954
by 15% to 20%.
DECEMBER 31,
U},...
J. Q. ADAMS
1954
...
.
if
Real Estate
RESOURCES
CARL A. BIRDSALL
President
CHICAGO TITLE AND TRUST
COMPANY
CHAUNCEY B. BORLAND
$
Cash and Due from Banks
Managing Owner, Borland
Properties
United States Government Obligations...
622,158,650.39
1,247,587,764.68
CHAMP CARRY
President, Pullman Incorporated
BALANCE
SHEET
As
of December 31, 1954
Other Bonds and Securities
$ 4,033,595
Loans and Discounts
State and
Obligations
Municipal Bonds
$ 6,151,892
14,246,175
Other Bonds and Preferred Stocks....
Stock in Federal Reserve Bank
Chairman of the Board, The Cudahy
Packing Company
President, The Cuneo Press, Inc.
4,967,306
First
Mortgages
Securities
90,086
Pledged
Balances U. S. Government
Obligations
Total Marketable Securities
28,385,123
$45,973,225
Other Assets
(less reserve)
1,356,673
...
Sundry Loans and Investments
Real Estate
688,380
Banking House
Stocks of Associated Title Companies
Title Records and Indexes
2,045,053
5,500,000
Chairman
1,373,521
Sears, Roebuck and Co.
1,600,000
....'.
$61,169,881
Banker
Reserve for Taxes,
Reserve for
Interest, and Expenses.
15,628,596.87
Income
Contingencies
18,102,452,93
Collected but Not Earned
737,387.00
PETER V. MOULDER
111,013
International Harvester
2,750,691 $ 2,861,704
Indemnity
Capital Stock
Executive Vice President
$
Against Specific Title
75,000,000.00
(2,250,000 share.. Par value $33'/i)
Company
125,000,000.00
Surplus
A. W. PEAKE
President, Standard Oil
2,834,335
Secured by Pledged
Securities
Undivided Profits.
Company (Indiana)
17,060,309.47
H. A. SCANDRETT
17,432,548
Railroad Executive, retired
$2,729,643,148.40
-
FRANK F. TAYLOR
Contingencies
For Market Fluctuation of Securities..
4,726,959
6,431,263
Banker
11,158,222
Capital Funds
$12,000,000
4,883,072
Capital Funds
in the amounts provided
President. Deere SC
are
pledged
to secure
purposes as
Company
public and
required
trust
or
$61,169,881
secure
trust
and
escrow
LA SALLE,
LOCK
JACKSON, CLARK AND QUINCY STREETS
BOX
H, CHICAGO
90, ILLINOIS
Member Federal Deposit Insurance Corporation
deposits and for other
permitted by law
26,883,072
by statutes of Illinois have been pledged
qualify the Company to do business and to
balances.
United States Government obligations carried at £247,378,007.09
CHARLES D. WIMAN
10,000,000
Undivided Profits
Total Liabilities and
HERMAN WALDECK
Banker
Capital Stock
Surplus
cash
JAMES R. LEAVELL
WILLIAM H. MITCHELL
Reserves
to
1,139,147.41
Acceptances
Partner, Mitchell, Hutchins 8C Co.
Payable
Trust and Escrow Cash Balances,
Assets
$2,476,975,254.72
Deposits.
ROBERT H. MORSE, JR.
Guarantee Risks
Losses and
of the Board
President, Fairbanks, Morse 8C Co.
Payable
Payable
as
LIABILITIES
JOHN HOLMES
(at cost)....
Accrued Taxes
Deposits
of the Executive Committee
THEODORE V. HOUSER
December 31, 1953, $2,782,419
For
CHARLES Y. FREEMAN
6,144,487
LIABILITIES and CAPITAL FUNDS
Cash
$2,729,643,148.40
Corporation
644,487
Unrealized Appreciation—Marketable Securities
December 31, 1954, $5,225,172
Accounts
8,100,000.00
Director, General Motors
President, Swift 8C Company
Chicago Title and Trust Building Corp.
Other Real Estate (less depreciation)
Accounts and Taxes
8,493,649.69
Commonwealth Edison Company
(at cost)
Total Assets
Acceptances
Income Accrued but Not Collected
President, Field Enterprises, Inc.
Chairman
Accounts Receivable
on
LAWRENCE P. FISHER
17.588.102
(at cost)
1,139,147.41
Liability
MARSHALL FIELD
Secure Trust and Escrow Cash
to
6,000,000.00
JOHN F. CUNEO
2,929,664
Common Stocks
688,374,766.07
EDWARD A. CUDAHY
Customers'
Marketable Securities (at cost)
U. S. Government
147,789,170.16
D. A. CRAWFORD
Director, Pullman Incorporated
ASSETS
Cash
t
continued high employment and to , ,
stable prices would be in over-accumulation of inven- *
tories. We have gohe through a period of bringing in- '
ventories down.
There is no need or no advantage in
greatly increased manufacturing plant capacity.
Super Elevator File designed to house large
a
quantities
a
increase
:
consumer.
Advantages of Conservative Inventory
>
accomplished without price inflation, as a result of
contin¬
banking.
a
the trend to drive-in
of
Nineteen
have
the
Inflation
sub¬
a
business for
We also expect
company.
uance
the
and
Capacity Will Present
extremely
well received and resulted in
stantial increase
Increased
potential demand is there for all sorts of goods
existing and new. There is a great reward
agencies that can interpret this demand
promptly bring the desired goods and services to
The
plant and by increased
labor population.
If we are to keep
up our standard of living or increase
it, the gains would need to be more
substantial than we estimate.
com'e
an
and services,
turing capacity of the U. S. had not
been substantially increased by the
a
radically new
vault doors in the
bank
in
is
There
for those retail
introduced
We
design
year
i
Standards
consumer.
enlarged
there
branch
Higher Living
important function that
distribution can play in analyzing consumer
and in providing helpful information to the
demand,
would be an accept¬
potential manufac¬
This certainly
to
Key
Improvement in the standard of living will not
•
able result if the
centers
ping
units.
*
its share of the consumer
market.
effective
in both dollars
again
forward
increase its efficiency and
to
automatically.
only make up the ground lost
in the recession but will begin moving
i
extension
the
the
substantial gain over
slight gain
the recent
Spring of 1955 will show a
Spring of 1954 and will even make a
the Spring of 1953, the period before
recession started. We probably will
the
over
not
vaults, safe deposit boxes, tellers'
protective equipment and burglar"*
alarm equipment.
V
We are expecting a very active
year in new bank construction. This
of branch banks into
turing level, there will be intensified competition in dis¬
tribution as each of several forms of retailing strives
sales of U. S. department stores
'
75
manufac¬
Along with this increased competition at the
LAZARUS, Jr.
President, Federated Department Stores, Inc.
•
-
(331)
The Commercial and Financial Chronicle
.
76
The Commercial and Financial Chronicle
(332)
Continued
from
the volume imported from
LESLIE
S.
DONALD
Hammermill Paper Co.
President & General Manager,
The
paper
The
of pulp from North America will exceed
Europe. While the gain in ex¬
ports of paper and paperboard is not so striking, it is,
nevertheless, significant that they will for the year
approximate 600,000 tons, 30% more than in 1953. Con¬
sidering these two items together, they are a further
indication of the growing extent to which the world
must look to this country and to Canada to meet its
growing requirements for paper-making fiber and, per¬
haps to a lesser degree, for paper and paperboard.
In
1955 the paper industry,
having so successfully
negotiated the recession of last year, should experience
another satisfactory year if the general
recovery so
widely predicted is experienced. In that event it seems
reasonable to assume that the steady growth of the in¬
States imports
75
page
1955 for the pulp,
excellent.
industry in 1954 again demonstrated its inherent
prospects for
good year in
a
and paperboard industry are
stability and enjoyed a highly satisfactory year as mills
operated at a high rate of capacity
to
produce approximately 26,400,000
paperboard, de¬
spite the fact that the national econ¬
omy experienced a slight set-back as
industrial production decreased
by
of
tons
and
paper
about
of
This
7%.
tenths
of
1%
crease
in
from
1953.
the
the
of
production
achieved
was
within threeall-time high
26,459,000
dustry
grades
tons
level
was
of
duction
of
Oonald S. Leslie
of tissue
nage
paper,
Cleveland-Northeast
Ohio,
as
the rest of the nation,
.
consumption,
of the most sensitive indices
economic
conditions
generally,
one
of
and newsprint rose by about 4%
provides significant clews
we
during
expect
can
Power
sharp increase in the exports of wood pulp and a smaller
increase in exports of paper and paperboard* reflecting
in
not
only
a
conditions
the close of 1954.
million
vested
in world
improving economic
opportunities for the development of
foreign markets have increased.
That, and the $200
expansion in¬
for
investment
Ohio
new
plant construction, but with
effort directed toward
concentrate
Elmer L. Lindseth
plant modernization, we in Northeast
Ohio expect to meet that stepped-up
competition head-on.
?-
of
non-integrated mills to rely more upon North
sources of supply, imports of pulp from over¬
seas are of decreasing importance to the United States
consumers.
As a result in 1954, for the first time, United
ment
records at
industrial
committed
Northeast
less
Thus, wood pulp ex¬
ports, which in 1953 amounted to 162,000 tons, are ex¬
pected to rise to about 400,000 tons this year. Further,
reflecting the growing extent of integration on the part
of mills in this country and the tendency of the manage¬
in
or
the Illumi¬
new
during the year,
are
good indicators of a vigorous
year ahead. Competition, of course, will be
keener everywhere. With somewhat
growing interest by the industry
abroad
present
production by
nating Company set
mills,
markets, but also the fact that with
to what
year.
continued to advance in ,1954 as a
record-breaking 18,000,000 tons were manufactured.
It is noteworthy that one of the important factors in
the indicated stability achieved this past year was a
board
as
the
More favorable
American
ciation
through
Revenue
Code
opportunities from accelerated depre¬
provisions in the revised Internal
new
should
provide ample encouragement to
billion has been
$2
invested in
Ohio's postwar industrial empire.
aj
Northeast
The number of people
employed in Greater Cleveland reached 637,000 last year,
and 1955 should witness continuing high-level
employ¬
ment.
Continued
large-scale commercial development ha3
with the growth of the chemical, automotive,
and allied industries in Northeast Ohio.
More
kept
pace
steel,
than $110 million was invested in this type of expansion
last year,
with $15 million of that total invested in shop¬
ping centers alone.
Some 18,000 dwelling units were completed in North¬
east
Ohio
struction
during 1954,
continued
Nearly 19,000
Steel
of
10
national
foresee
20%
to
this area's rate of home con¬
outpace the national average.
as
to
units are planned for this
new
sources
Great
anticipates the general level of business in 1955 to climb
above that in the year just past. •
Power
than
More
here expect
LINDSETII
L.
Thursday, January 20, 1953
.
industry to remodel and expand their old facilities,
well as to build new plants.
1955
9%,
and
pro¬
1953.
respectively, and the tonnage of other papers
produced approximated that of 1953.
The production of wood pulp, notwithstanding a slight
decrease in the rate of consumption by domestic paper
and
record
President, The Cleveland Electric Illuminating: Co.
guished from paperboard, was about
1.5% more than in 1953, as the ton¬
paper
the year to exceed the
ELMER
distin¬
as
and
paper
chiefly to the fact that the output of
of
and
due
paperboard, despite a strong recov¬
ery in the latter part of the year,
was about 3% less than in 1953.
The
manufacture
that the production of all
paperboard will be stimulated
continue
causing output for
The indicated de¬
1953
will
..
1954's
over
year.
production
level.
Steel
gains
in
producers
their share of these gains.
activity
be
expected
to continue along
Shore," rapidly becoming
one of the nation's largest chemical
industry concentra¬
tions. The latest link in the chemical chain along Lake
Erie—Union Carbide and Carbon Corporation's proposed
titanium reduction plant at Ahtabula, Ohio—is typical
of the region's continuing attraction in virtually
every
Northeast
field,
can
"Chemical
Ohio's
•"
i
.'/■ '
..'
\b
In order to better serve the
rapidly expanding indus¬
trial, commercial, and residential needs of the area, The
Cleveland
Electric
Illuminating Company, .like other
light
and
power
companies
throughout the nation, is vigorously pursuing the greatest
expansion in its history.
i
investor-owned
electric
With $238 million
already spent
on
construction
new
and expansion of service facilities since the end of World
War II, the Illuminating Company has planned addi¬
tional
expenditures of $160 million
over
years,
including $35 million for 1955.
'■<.
the
five
next
■
An additional
208,000-kilowatt turbogenerator is being
at our Eastlake .power plant. Cpmpletion of this unit will bring thenew plant's operating
installed
this
year
capacity to 628,000 kilowatts, and system-wide operating
capacity to 1,772,000 kilowatt$.
:- V
<
One
of
the
most; favorablefactors
Northeast Ohio's future,
in'Cleveland-
of course, is the St. Lawrence
Seaway, scheduled to be ready for ocean-going vessels
in 1959. Accessibility to the world's principal sources of
H. H. Arnhold Pres.
Of General Ceramics
General
Ceramics
Corporation,
Keasbey,
N. J., announces the
election of Henry H. Arnhold, as
President. Mr. Arnhold has served
7
as
director
a
of the corpor¬
ation
since
1944.
is
He
also
Vice-
President
and
Treasurer
o
f
Arnhold and S.
Bleichroeder,
Inc., o f N e w
York, dealers
and
under¬
writers
r«
of
vestment
THE FAMOUS
in¬
se¬
curities.
'
Dr.ErnstAlHenry H. Arnhold
bers-Schoen-
DIME
Vice-
berg,
research of
President in charge of
More than
420,000 people do business with the famous Dime —the
largest Savings Bank
We
serve
the
on
Long Island.
saving needs of
dividend amounting to more than
We
serve
unsurpassed by
Why
the mortgage
any
secure
over
353,500 depositors. A record
over
was
paid last
66,500 home
owners—a
savings
account
the future of your
today
at
elec¬
record
for the chemical industry.
Form DeWitt In v. Co.
WILMINGTON, Del. — DeWitt
Investment Company is conduct¬
a
fices
n&c
%
the
for
The company also
manufactures acidproof stoneware
ing
m
steatites
tronics industry.
the famous Dime Savings
family.
and
rites
year.
Savings Bank throughout the world.
not open your
Bank —and
a
General Ceramics Corpor¬
ation
is
a
leading producer of
technical ceramics, especially fer-
pany.
$17,500,000
needs of
elected
was
Corporation,
director of the com¬
Ceramics
General
securities business from of¬
at 910 West Street.
Guthrie is
a
Edward
Ultsi
Paul
Ealey Opens
.
(Special to The Financial Chronicle)
SAVINGS BANK OF BROOKLYN
K.
principal of the firm.
MODESTO, -Calif.
j
,
Edward,
—
Ealey is conducting an investment
$L«
BENSONHURST.
«*>«"«
CONEY
Ol
.86th
ISLAND
..
Street
and
19th
.Mermaid Ave. and W.
'Member Federal
t/JA
A
..
Avenue
business
YE**
17th St.
Deposit Insurance Corporation-
at
1025
;
.
Porteiy Stacy Co. Formed i
H OUST O
N,
ofevosu
Tex.
—
Porter,
Stacy & Company has been form-,
ed with offices
(Mitt »M
offices
from
Eleventh Street.
FLATSUSH........Ave;. J. and Coney Island Avenue;
fUUHW*
0,
Fulton Street and DeKalb Ave.
DOWNTOWN
ihg
to
in the West -Build-;
engage dn
business.-
Andrew
the
securities
C. Porter is a;
'principal of the firm.'
~
-
Volume 181-4: Number 5396
raw
The Commercial and Financial Chronicle
...
an -already excellent combina¬
geographical, advantages, will greatly strengthen
area's clairri to the title, "The Best Location in the
materials^^-added to
tion of
the
Nation."
well
large, but as
growth.
AUGUSTUS C. LONG
H.
these
for
there
devoted
be made in
the amount
company's expanded
program.
These expendi¬
tures are being made to meet in¬
A. C. Long
tensifying competition, and growing
demand. Use of petroleum products in the United States
during 1955 will increase from 4 to 5%, compared with
the 1V2 % increase between 1953 and 1954. Consumption
of gasoline should rise by about 3% with kerosene use
rising from 6 to 7%, distillates 9%, and residual prod¬
record—despite the somewhat
level
of
business generally
throughout the two countries—can
be attributed to the increased public
recognition of the advantages of the
constructive use of credit; and em¬
ployees who have sought aggres¬
sively to
Foreign
increase
demand in
by
about
barrels
should
per
all
areas
of the
free world
will
9% in 1955.
Representing about
day, this dynamic increase in de¬
permit
obsorption of the new
output in world markets with little difficulty.
Iranian
One of the most
important problems facing the United
industry in 1955 concerns Federal control
of natural gas production, a condition arising from last
year's Supreme Court ruling in the Phillips case.
An
amendment to the Natural Gas Act removing Federal
control of production is urgently, needed.
oil
H. £. MacDonald
Although
might be
Pulp
&
Paper
of
a
vide
to have stood
decline and
off the threats
seems
now
to pro¬
healthy foundation for the
beginning of 1955.
In spite of the various economic
adjustments of 1954, statistics would
a
indicate
that
suffered
a
the
paper
decline
in
industry
volume
of
about V2
of 1%. This is to say that
underlying growth factors of
the
paper
industry proved to be
almost
as
strong as the negative
forces operating within the economy.
the
Since
a
all
consumer
I
year
of
believe
that
moderate
1955
will
be
several
are
areas
the
in
that will have
tinue up in 1955.
We are therefore cautiously opti¬
mistic for the farm-equipment busi¬
not
segments
ness
in
1955.
believe
We
for the future years are
prospects
good, for we
virtual elimination of overtime;; nevertheless, de¬
linquency has been controlled and uncollectible accounts
feel confident that most farmers who
have been
several years have
result
have
enjoyed good crops in the past
W. C. MacFarlane
cash reserves and
good credit ratings. As acute busi¬
nessmen, like the industrialists,
they will need costreducing equipment of good quality that will produce,
in a more comfortable and convenient manner, the food
kept within reasonable bounds. This favorable
possible only because our staff applied "sound
was
fundamentals"
in appraising loan applications and in
counselling customers and potential borrowers.
During 1955 we expect to open new offices wherever
favorable opportunities to do so exist, and to modernize
by an ever-growing population.
business picture looks good, with an up¬
ward trend, which should have a continuing beneficial
effect
having
exist
Canada.
an
in
In
effective
two-thirds
five
small
loan
law.
the
states
Such
can
determine where Hazel or Fanny
strike; what rivers are going to overflow their
banks; where we will have drouth or insect infestations
and such things as rust—or what might be stated as
conditions unfavorable to the planting, growing, and
harvesting of crops. Now, on top of everything else, we
have politics to contend with—and what Uncle Sam is
going to do or not going to do for our customer, the
farmer, in the way of subsidies or restrictions. At this
time we are manufacturing harvesting machinery for
the 1955 harvest season, for crops that have not yet been
planted. This gives you an idea of how difficult it is to
guestimate and plan production for this or any year that
lies ahead. If we build too much, and conditions are
adverse, we carry over excessive inventory. If we plan
too little, we spend our money for sales expense on
merchandise that is not available when delivery time
may
and
of
laws
states
(Alabama, Delaware, Georgia, Mississippi, North Caro¬
lina, Tennessee and Texas) and in the District of Colum¬
bia, and small loan laws which exist are .seriously
In
comes.
spite
of the foregoing,
tiously optimistic for
cautiously optimistic for
loan sharks
levying unconscionable charges — exist
alongside of banks and credit unions, which serve only
a
portion of the needs of the consumer public.,
Population
For
the
—
It is to be
hoped that those states will provide legisla¬
give their citizens the benefits of the services of
consumer
not
are
as
the
long-term
is
I
I,
only from
industrialist, must
use
and
the
very
decline, it seems
reasonable to expect that the paper
REPORT
OF
CONDITION
OF
First National Bank
OF
SALT
LAKE
SALT LAKE
CITY
CITY, UTAH
As of December 31,
PUGET
SOUND
PULP
RESOURCES
$31,557,411.05
or
less)
64,631,733.86
Municipal Obligations
AND TIMBER GO.
1954
Ca»h and Due from Banks
U. S. Securities (par value
Total
6,984,466.79
'.
Liquid Assets.
$103,173,611.70
Loans and Discounts....
15,847,053.16
Stocks
BELLINGHAM, WASHINGTON
80,100.00
1.00
Banking House
Furniture and Fixtures.
1.00
Other Assets
—
5,261.34
Total
♦
$119,106,028.20
LIABILITIES
Demand
High Grade Bleached
Time
Deposits
Sulphite Pulp—Paperboard
Industrial Alcohol
7,322,272.76
$114,556,117.61
Deposits
750,000.00
Capital Stock, Common.
Surplus
1,500,000.00
Fndivided Profits and Reserves.
2,299,910.59
Total
Lignosite
$107,233,844.85
Deposits
Total
4,549,910.59
Capital Investment and Reserves.
$119,106,028.20
Total
MEMBER FEDERAL DEPOSIT
arable
lands
latest^cost-reduc-
Continued
finance companies regulated in the public in-
industry in 1955 will benefit not
the increasing strength of the economy at
less
increasing in proportion. The farmer, the same
moderate economic
David L. Luke, Jr.
but
optimistic—period.
am
increasing,
from
recovery
cau¬
am
company.
our
outlook,
constantly
however, I
industry this year,
our
defective and fail to provide adequate service at reason¬
able rates. In states without effective small loan laws,
tion to
nature's idiosyn-
is subject to mother
industry
cracies. She alone
Finance
throughout
(Arkansas, Kansas, Montana,
North Dakota and South Carolina) there is no effective
regulation of loans made to consumers. Iri seven states
now
the economy.
on
Our
Corporation serves the public
primarily under the provisions of the small loan laws,
originally recommended by the Russell Sage Foundation
almost 40 years ago in order to provide consumers with
adequate credit at reasonable rates of charge. These laws
generally provide for the licensing of lenders after a
strict examination of fitness, character and financial
capability and provide for continuous supervision of
states
needed
The general
public more effectively.
By continued careful selection and training of personnel,
we hope
to,continue to help our customers to use their
credit wisely.
Household
fiber
and
and relocate offices to serve the
cash loan needs of families
people thought that the year 1954
difficult one, the economy of the country
seems
was
for
Midwest
in 1955,
upper
satisfactory
improve for business to be en¬
tirely satisfactory. There was defi¬
nite improvement in export business
in 1954, and we look for this to con¬
The test of time has demonstrated that the legitimate
can be fully served only in
Co.
many
a
serve
year
there
the
be
balance of the country
the
LUKE, Jr.
Virginia
West
the
but
in
to
to
such licensees.
DAVID L.
President,
promise
better.
without
its
of the
consumer cerdit industry. It saw re¬
stricted employment and some un¬
employment in many locations, and
The
problems
research
ucts 2%.
conditions
This
lower
the
to
were
the year.
Approximately
60%' of
these
be expended on produc¬
ing facilities and a "substantial in¬
,
Company
During the past year we have been able to achieve
stability in our company, and the prospect is for gradual
and continuous upward progress. Our industry, of
course,
is greatly dependent on adequate moisture throughout
all
agricultural sections.
Moisture
about 1,400,000 accounts
books, totaling over $385,000,000, an increase of over 6% during
funds will
Mac FARLANE
C.
Minneapolis-Moline
President,
on our
In
purposes.
"
.
W.
inces of Canada. At the end of 1954
tivities.
crease" will
amounts.
1954,
1955, increased proportions of the
capital budget will be spent on pro¬
ducing, marketing and research ac¬
States
E. MacDONALD
Household Finance Corporation
Household Finance Corporation has
providing services to more customers.
During the year we opened 43 new offices and now
serve the people of 435 cities in 31 states and all prov¬
During
years
increasing the maximum amounts of loans sub¬
ject to state regulation will continue. This will permit
a more adequate service to consumers and will provide
regulation in the public interest of loans in larger
moved forward in
Capital expenditures by The Texas Company in 1954
exceeded $300 million and-during 1955 will remain at
that high level.
'* ■.
During the past year considerable emphasis has been
placed
on
upgrading
of
refined
products, through
construction of
catalytic reforming and alkylation
units, and the company expended a
record
budget of more than $80
million
It is also hoped that the trend of recerit
terest.
continuing potential
own
towards
President,
President, The Texas Company
mand
from its
for
.
1
450,000
(333)r.7T
\
INSURANCE
CORPORATION
on
page
78
\
78
The Commercial and Financial Chronicle
(334)
Continued from page
77
>7
|
»
ing machinery to produce the greatest number of man
per day that are possible under his operations.
units
substantial increase last
export business showed a
Our
the preceding one, and we expect a substantial
increase this coming year. We have increased our per¬
sonnel, and bookings for the first few months of this
year over
compared with the same
undertaken a farmmanufacturing project in Ankara, Turkey,
encouraging
very
are
year
period last year. We have recently
machinery
where
the technical and manufactur¬
to furnish
are
we
prof¬
ing know how. We expect this business to become
itable as they get into full scale production.
December business shows an im¬
November and
Our
December of last year.
provement over November and
then, we believe that 1955 prospects
in being optimistic.
summing
In
warrant us
up
therefore
end
President, Texas Utilities Company
The Texas Utilities System,
comprised of Dallas Power
Texas Electric Service Company, and
Texas Power & Light Company, supplies electric service
to a third of the people of Texas in an area covering
& Light Company,
northern, eastern and
parts of the State.
Included in this service
area are the cities of Dallas, Fort Worth, Waco, Wichita
Falls, Tyler, Odessa and about 25 other cities exceeding
10,000 population. The Dallas-Fort Worth Area has the
greatest concentration of population, of both general and
industrial employment, and of purchasing power in the
System area. Population of this two-county area has
^-•increased about one-fourth in the past four years.
The service area's economy is based on agriculture,
cattle, oil, commerce and industry. Very rapid develop¬
73,000 square miles in the
about
western
ment has
All
War II.
since the end of World
accurred
segments of the economy have made great progress and
currently 42% from residential
commercial customers and 28%
the System's revenues are
30%
customers,
from
from industrial and
other customers.
Although the whole service area has not experienced
the game degree of development that has occurred in
the Dallas-Fort Worth
-
nevertheless, the past eight
earlier period in progress and
expansion. .'Demand for electric service has trebled since
have exceeded
years
area,
any
the System companies have invested in excess
1946 and
of
$380,000,000 in new facilities in the post-War II period.
Planning of construction is necessarily based to a consid¬
erable
degree
.the trends indicated by the immediate
on
past, tempered by indications of what
be expected in
may
the hear future. Scheduled additions to the
System's gen¬
erating capacity total approximately 700,000 kilowatts, in
the
three
next
mated
years,
capacity.
present
at
increase of
an
Construction
40%
over
are
about
esti¬
expenditures
$56,000,000 in 1955 and $60,000,000 in 1956.
We are confident
that, in the absence of
reversal in the trend of
serious
some
presently dis¬
economy not
our
of
difficulties
employment
ably
cernible, business activity and population will continue
it
market in
the
to
as
which
sold
be
in the Canadian dollar's strength rather
sometimes
decisions
investment
can
sible
business
cautious
in
reduction
farmers'
In
the
was
case
in
to
of
to
next
giving
Sidney
Maestre
firm tone to expecta¬
optimism is not
a
This
outlook.
thinking
will
year
provide
rise and
be
at
clear that
construction,
all-time high, and this
because
an
important
an
is
it
economic
to
prop
residential
builders
States,
high level of activity next
a
when the level
is somewhat
It
in
are
as
well as
planning to maintain
'•
year.
difficult
more
this area,
activity.
expected
to
predict the behavior
consumers.
Throughout most of last year? they were
sufficiently confident of the future that they tended to
exports over the past year
spend
production in
larger amount of t^eir disposable
personal in¬
concentrated in
were
purchases of non-durable goods and services. It is
consumers will spend large amounts this
year for the purchase of automobiles and home appli¬
ances.. At the present time they appear to be
relatively
possible that
confident of the future-
might be expected to exert on our forest
mining industries have been avoided by
increased sales in the United Kingdom and* elsewhere.
It
products and
To raise the question of
The increased expenditures
the
States,
United
the
a
come.
effects that this
would
be
a
ness,
.
mistake, however, to expect that the
in, industrial activity will carry busi¬
.
current recovery
the future of1 the export trade
activity'to .extremely high levels since there still
unfavorable
remain
at once to the basic problem of-Canada's eco¬
go
business
wishful
elsewhere in the United
exports to that market have fallen but the adverse;
is to
in
State and local governmental expenditures are
exports of pulp, paper, lumber and non-ferrous metals.
decline
the
upon
the
will
high levels of 1952 and 1953. Other exports
clear trend; declines in our exports of steel,
automobiles and electrical apparatus were offset by high
the
senti¬
in¬
factor
construction activity, apart from industrial
noy
With
been
business
important
an
about
based
very
our
is
is
economy
of
The fall of Canadian total
the
econo¬
it-has
as
the feeling of optimism is
is due mainly to the great decline in wheat exports from
show
many
is
more
fluencing the future trend of indus¬
activity.
At the present time
higher.
was
of
trial
inventory accumulation. That the recent de¬
cline in imports ocqurred while consumption in Canada
was
reaching new postwar peaks
worthy of note as
Canadian producers must now be getting a larger share
of the domestic market than
is
polls
optimism
period when the
a
ment
the end of
of. imports
of
That
optimistic
of
statements
evenly balanced
the last year,
as
which
and
by the
somewhat
over
than the Ameri¬
thought respon¬
machinery
the
a
mists.
our
^pending for
is
their
and
by
1954.
present
normal
automobiles.
the. various
businessmen,
payments for imports have
fallen faster than our receipts for exports in Canada
and the decline in imports can be related to the sharp
past
by
reinforced
tions
time
some
of
is
of
the
extent
what extent
upon a
introduction
sentiment
reflected
for it.
For
models
new
the major factor
were
activity
to
based
earlier
somewhat
total of $303 million. In this period
a
decisions
to
were
and
one
the start
at
was
to what
seasonal increase accentuated
the
Canadian
wps
than it
however,
industrial
in
recovery
immigration of skilled workmen should still be en¬
if the full possibilities of our Canadian re¬
development program are to be realized.
This program of development is still being financed
to an important degree by the inflow of capital from the
United States and Europe for direct investment. Much
the most important element in the capital inflow in the
last quarter of 1953 and the first two of 1954 has been
the heavy sales of new Canadian securities in New York
investment reached
optimistic
certain,
permanent
source
securities
not
is
it is temporary
couraged
by
more
It
Canada
particular
in
St. Louis, Missouri
beginning of 1955, business activity was rising
slightly and the sentiment of businessmen was consider¬
industries. It is especially important that the
or
MAESTRE
At the
hoped that policy will be directed to that
despite 7&ny
regions
health
economic
the
to
Thursday, January 20, 1955
.
Chairman of the Board, Mercantile Trust Company,
,
lower level of interest rates there. In
these three quarters, sales of new issues of Canadian
securities abroad totaled $374 million, whereas direct
MacGREGOR
L.
essential
and it is to be
induced
G.
SIDNEY
production is mosj, noticeable in the industrial sector of
economy
and were we to rest content with the
present levels of production, high as they are in terms
of all previous experience, this sort of unemployment,
some of which is caused through natural growth
of the
labor force, could soon become serious. Expansion is
the
'
..
factors
present -in
the
economy.
-
Surveys sfcow that plant and equipment expenditures
nomic future. The high level of investment by privatebusiness is a main sustaining factor in Canadian pros-v. .by, husiness. enterprise are expected to continue tp idecline im 1955 and the level of Federal spending is also
perity 'and these investments are being made in anticipa-<
tion
of
expected to fall further.. It is also anticipated that farm
income will again fall to a lower level. Inventory liq¬
expanding markets to come and as long as theprosperity continues, more goods of course
(Canadian
be sold
will
Our
in
the home
uidation
market.
for
fortunes
years
of
ahead must depend on
our getting a good share of a growing volume in world
trade. Whether world trade is to develop, along with
world
arc
tion
many
productive capacity, and
whether
little
responsible in the last
expectation that
year
for
period of inventory accumula¬
a
it is believed that businessmen have
satisfactory levels.
the depressing effect of inventory
quently,
is not likely to be a factor in
If business
large part
a
activity ,and, while there is
their inventories to
reduced
to gain access to world markets without discrimina¬
are therefore fundamental questions for Canada.
1955.
Conse¬
liquidation
,
,
the
in
System service
future expansion are based
L.
President,
the
For
a
Imperial
first
world where
the
that
fact
S.
activity follows the pattern outlined in the
Bank
time
in
of
Ontario
living
are
we
in
world
a
changes.
fluctuations in loans will be somewhat less than normal.
—
that
peace
seems
at
times
that fact that
in
at
peace
somewhat
have
we
come
without
The great
nomic
European fear that
disaster
countries
if
would
there
befall
should
be
an
hardly a ripple on the
surface of European prosperity and
the
threat
of
serious
depression
which
seemed
to
hang over this
continent a year ago has also been
dissipated.
great
postwar
in
the
*
'
r
^
of
resources
The
raw
expansion,
Canada
giant
mining
industry
it
of
of
and forges ahead under
war
is
responsible for much
nation
the
living of
The
in
this
every
petroleum
age
security
and
the
to
standard
such
industry
or a
continues
make
to
appears
several years,
notable
"peaceful
our
economy
downturn
movements
situation
Canadian.
and its contribution to
progress
wealth
and
development of these
power
should
resources
the high level of investment
still unused.
are
encourage
which Canadian
on
pros^.
perity and growth will depend.
the possibilities of renewed advance
are
is of the
fields
lished
relatively
are
throughout Alberta
healthy
progress
during the
are
co-existence"
GEORGE
promising and de¬
and
and
the
solving
pipeline
active
of
this
the
which
main
has brought
this
types of spending but
What
expansion
will
with the
way
Our
problems* -continue
siderably
marketing
to
booked
in
of
ahead
the
unquestionably
be
one
of
the
P.
the
last
receive
services,
export
demand,
have
all
While
is
evident
ahead
In
Canada
growth
Investment in inventories has shown
decline.
Fortunately,
consumer
the
largest
tended
an
downward.
especially sharp
element
in
demand,
spending, has not only been maintained, it has
actually risen to
a
postwar peak.
The loss of employment in Canada
through a fall
our
time
was
more
than
policy
a
ex¬
Power Project.
There
have ajlsoj been
many
it
is
always
difficult t6
for
very
Canada.
together,
hard to
see
Technical
demand
an
from
the
even
to
be
particularly
types
a
world
check its
trade
growth.
of
emphasis
-
1953. Orders
customer
and
year
a
expansion
required
a
program
capital invest¬
nearly
$40,000,000,
with
increased production in
on
its plate and safety glass plants,
of
occupy
on
for
part to the
of
due
in
in
demand
larger fise
glass in homes, schools, hospitals,
in
motor
as
well
coupled with ex¬
panding volume of units in both
building and automotive industry,
are
being reflected in the growing
as
in
G.
P.
MacNichol, Jr.
by
Canada
cars,
volume of orders.
We
are
t
meeting this situation
now
(1) obtaining full output from all plants, including
facilities put into production- in the
last-' f!ew
new
stimulating,. ^specially, if
business continue
gains
offices and similar structures
our
is freed of the restrictions which still
i
Tremendous
minor
program
only fully
present upward trends in American
the
three-year
ment
population
and
investment
great expansion. The impact of these factors
bound
of
Libbey-Owens-Ford has completed
present productive capacity in Canada but? call for its
is
record-breaking
which has
anything but. expansion
change
Glass Company
glass
specify
recovery
MacNICHOL, Jr.
months
greatest
finally commence^ last August
North America which should not
and
in
any
were
high, providing
flying start for the new year.
in every Province of this great country.
one.
goods and
is
schedules
turning of the sods for the St. Lawrence Sea¬
and
about
on
past
glass industry faces 1955 with confidence.
company's glass sales for 1954 will run con¬
study.
projects of
good, the inter¬
private investment, government spending
for, the
than
The flat
with .a marked increase
year
industry's, complex
recession, it is
demand
slow. The international
now
Libbey-Owens-Ford
President,
in production. Natural gas production /has* also increased
production is nevertheless substantial and the decline in
all
critical
less
pedient to the present moment.
velopments in Saskatshewan and. Manitoba have shown
spending which will bring
in
occurs,
highest order. New discoveries and expansion of estab¬
ruption in the postwar rise in the volume of industrial
total
markets
but it would be incorrect to assume that
important power projects completed during ^he past year
Though fears of depression have been dissipated and
short-term
and
of relatively stable
upturn
vigorous .leadership and
of the
atomic
long-
business activity. If either an
it is likely to be of modest
proportions. There is a tendency to expect that move¬
ments in business activity will be both sudden and sharp,
but it is well to remember at this time that generally
be
can
considered as the backbone of our country in peace and
in
in
Canada at any rate, has not yet run
its course and a large part of our
materials and
seasonal
year
expanding in Northern Ontario and in West¬
are
a
t
seasonal
the
Interest
Canada.
rates
that
possibility
some
should, therefore, remain almost unchanged from current
levels. It is unlikely that they will fall further.
Nineteen fifty-five, therefore, is likely to be another
other
has produced
The
is
now being shipped, much of it
from the Quebec-Labrador Iron? Ore develop¬
ment which represents one of the truly great achieve¬
ments of this century and other great mineral develop¬
eco¬
American recession has been proven
false. In fact that American recession
L. S. Mackersy, M. C.
There
refined,
even
strained,
through
any
major interna¬
tional catastrophe* is in itself highly
encouraging.
1954
investments will be relatively stable apart from
by other countries in the Western hemisphere
the growth of the mining industry in Canada must
perforce continue. Ore is
ern
though
years
ments
Toronto,
is being waged. Beyond
war
living
are
Canada,
generation
a
shooting
no
we
MACKERSY
preceding paragraphs, it is probable that bank loans and
and
Outlook.
this
on
Our plans lor
area.
Canadian industry has ex¬
panded phenomenally. Within its borders, Canada has
an
abundant supply of most of the raw materials re¬
quired
increase
to
During the postwar
was
decline in industrial
tion is under way,
exporters
our
the
~
months'* and (2) by providing for a $25,000,000 expan¬
?,
sion of plate
glass capacity in 1955.
During the early part of 1954, importations of window
Continued
on
page
80
Number 5396
Volume 181
(335)
The Commercial and Financial Chronicle
; ; ;
Continued from paqe 28
homes.
own
aided
cies,
the
totals
esti-
now
mated for these years.
dollar value
*
Expenditures
.FiscalYear;
;
<mbiihons)
J?;?
atomic ' energy.
of
cations
$65.4
of
The
with
compared
for
stockpile of insurance
our
strategic materials is expected to
reach 78% of the minimum ob-
jective,
are
jointly
now
By increased use of fully,
insured private loans, the need for
cost to the Federal Government,
Under legislation passed last year
A sound basis has also been pro-
the Markham Ferry project in
Oklahoma and the Priest Rapids
am project in the State of Washing10- ton> both witb large power de-
vided through the new watershed
protection legislation for greater
cooperation between the Federal
Government and states and local
Provision has been made
extension of unemployment
grams.
further
still
of Ontario
ince
are
ITIcSSa^C
DUugCI
investors,
private
bein& encouraged to start developing the power resources of direct Federal loans for farm
comprehensive urban renewal pro- the St. Lawrence Jliver without ownership and for soil and water
Maccatro
Rlllliral
Prociflont'c
rresilieni S
Local public agen- State of New York and the Prov- year.
by
79
58%
in
-
to
million
four
more
workers.
F0r
the
coming
I
year,
recommending that
start
we
a
has
conservation
been
reduced,
'
}25--a—74 3
1954. As estimtd., Jan.
a+~j
jgrA estimated
estimated
+•
The
stern
cok
63.5
62.4
defense
the
dictate
'
budget, and it
'is chiefly these requirements
lwhich prevent us from decreasing
»
budget expenditures faster at this
and
of
finding
the
doing
done.
be
accomplished.
already
(
we
:
the cost of government.
„
:
Mnior
.T
_
r
»
1»i
11
ternational affairs and finance are directly
estimated to be $1.3 billion, $88 .user charge
includes the
amount
legislation
new
establish
cost of
proposing to
am
effective military
an
wstpm
<?prvp
I
^trpn^fh^n
anrl
re-
thp
_
w
...
I*
A. 1_
in
_
.
principle should be 1955.
islation will not greatly affect exfurther extended. I have recomAgriculture — Greater freedom Pooditures for the fiscal year 1956.
mended to the Congress that pos- from government direction and '-•stimated net expenditures for
tal rates be increased to make the control of farming operations will agricultural programs in 1956 will
postal system self-supporting in be made possible in future years be $2,3 blllion,
million less
the near future. With the enact- as.a result of the new farm legis- than in 1955. This reduction is
ment of this legislation, total net iation enacted last summer
The Principally due to the anticipated
our
are
expected
l&nSStedat^??,K d"vldLPlTn1Ltivfr^deourUcom:
Y?1 m'U
e' anct our com
of total budget expenditures
research and educational work,
farmers can better work out so-
smaller outlays for farm price
supports resulting from acreage
restrictions and increased sales.
We must, at the same expenditures for commerce gnd flexible supports provided for
manpower in the fiscal year >956 therein will stimulate the con-
freedom-
nenditures'foTlSainr nlttonaltime lo0k t0 the abldmg sou/c.es
0f
internal strength—our faith
This
*
.1
'Keeping our own defenses
strong and cooperating with our.?
reducing allies to increase their defenses
will deter outside attacks on our
Fv
vention program.
In addition,
through strengthened agricultural
or local units, with
peace.
those
—
velopments, will be built by state groups in the upstream flood pre-
local
and
State
with
affairs is
-
savingsiyear 1955.
National
operation
crucial in search, expand air navigation fa- bilities. This budget proposes the lutions for their own problems.
We
have cilities, and help industry build start of several new construction These steps reduce the dependmaterially
contributed * to
the more ships.
These activities are Projects under such partnership ence of farmers on the. governstrengthening of friendly nations important for our national secur- arrangements. Thus, we are con- ment, encourage farmers to take
through the economic, aspects ofrity-as well as for our growing tinuing to develop our natural re- the initiative in adjusting producthe
mutual
security v program/ economy.
I firmly believe that sources at less cost to the Federal tion to demand, .and provide the
Continuation of such assistance is as large a proportion as possible Government.
Net budget expen- conditions under which farmers
rjlilimc
nf
millinr-l
1 QRfi
preserving
penaitures lor major .national se-
65%
•-
pro-
However,
continue
to
and, Fi-
that million lower than in the fiscal
things
Future
1
:
better
difficult than
more
expect
effi-
increasing
from
be
ways
must
J will
from
part
ciency
Affairs
international
Our
11
large
;
our
—
f0reign
our
our
largest part of
year program to modernize the
interstate highway system in co-
modest Fedoral contributions only for those
grams are closely related to na- governments. I am also proposing purposes
such as flood control
tional security.
The conduct of that we step up aeronautical re- which involve national responsi-
nance
requirements of
-nationa l
- *
International
//.9
a, 190.5
iQ(.c
1954'
be
to
billion,
$2.2
^ ^'
sumotion
•
home and abroad and wi" reduCe
government expenditures for buy-
Natural Resources— An lmporpe'ltlve enterPrif •
tant policy of this government
Commerce and Manpower—We is to encourage an increased sharare moving ahead in taking the ing by State and local governgovernment out of business wher- ments of our long-range develop.
...
of
at
nroducts
farm
Welfare, Health, and Education
—Our policy of partnership with
ing and storing surplus commodi- state and local governments and
ties. Greater private participa- with private enterprise is also ention in the financing of loans to abling us to make significant confarmers
has
also
been
brought
.
Continued on page 81
"
This
service.
career
vides
for
budget
pro-
expenditures
more
by
the Department of Defense for air
than ever before in peacehistory.
New weapons for
power
time
defensive
i
retaliatory
and
action
being developed and produced
are
in
increasing
quantities.
High
priority is being given to strengthening our continental defense sysSince
tem.
not
military supplies are
consumed in combat,
the bulk of the military materiel
being
being
is
produced
adding to
fend
our
ourselves.
by our factories
capacity to deOur
defense
ex-
penditures are now bringing about
a steadily growing strength. Never
in
our
been
peacetime history have
as
well
ourselves
as
prepared
we
are
we
defend
to
now.
ever
J" additioii to selling the Inland
Waterways Corporation and liQuidatmg the Reconstruction Finance ^arp0ra^10.n' we bave a^"
r<:ady sold or sbu*
a number
® Department of Defense plants
*or processing scrap and manufeaturing Pain^» clothing, and
chlorine. Private industry is performing an increasing share which
has reached almost half, of major
equipment overhauls for the Air
Force. Most
*be synthetic rubbef Plants have been sold to pri-
We will deliver about the same
friendly
1955.
will
more
•
will
of
military equipment to
nations
New
be
atomic
placed
than
be
as
in
in
any
in
Purchasers, subject only to
congressional approval. These acva e
tions not only serve to strengthen
^ system of Pnvate enterprise,
^ a s0 ln many cases reduce
government expenditures and in¬
energy
plants
operation and
previous
spent for peaceful
ties,
year
appli-
tax
and
Federal
and
1954
.
AMERICA'S PROGRESS
.
crease
amount
For example, the about by legislation enacted last
.*
*"
tbis can Pr°Perly be done, ment projects.
receipts for cities, counStates
well
as
as
and machine tools
forefathers
Our
to
the
the
new
old.
Had
our
at
a very
of
differ¬
today.
the
that
on
more
more
people
liberal
can
country's
terms
Machine
use.
contributed
have
nation's
the
tool and its
machine
tools
contribu¬
greatest
has been the Amer¬
productive
wzmmm
lenders to make mortgage money
available
our
ican
Government,
During the past year, legislation
enacted permitting private
economy,
distinctively American
on
tions to progress
was
so
productive
world marvels, has
the
ideas, methods, and machinery. One
technology of the
old world, it would be
American
which
been built
country grown up
with the ideas and
ent America
The
brought with them
world the handicrafts of
security
to
and
high standard of living out
buy their
of all proportion to
the
com¬
paratively small industry
that
II
SERVING
H eartland
THE
and
develops
builds
them.
We,
are
ers
OF A RICH STATE
of
Cincinnati Milling,
at
proud to be the build¬
of
380 types
these
and sizes
machines
which
form "the very cutting
of
industrial
colorful
edge
progress."
A
40-page book high¬
lighting the company's fa¬
cilities and
engineering de¬
velopments
for
users
was
of
Single copies
for the
prepared
our
products.
are
available
asking.
Cincinnati
Milling research has
of the problems re¬
solved many
lating
to
the
machining and
grinding of Titanium.
Call the roll
for
electric
company
.
..
343
busy Iowa communities look
service and
serves
42 for gas
the heartland of
a
service.
to
this
company
A great, fast-growing
rich state—and
serves
it well!
IOWA ELECTRIC LIGHTS POWER
THE
CINCINNATI
MILLING
MACHINE CO., Cincinnati 9, Ohio
Builders of fine machine tools for Milling,
and
Metal
Forming. Other products:
Cutting Fluid,
General
Offices: Cedar Rapids, Iowa
Broaching, Die
Sinking, Cutter Sharpening, Precision Grinding, Lapping,
Grinding Wheels,
and Flame Hardening Machines,
The Commercial and Financial Chronicle
Thursday, January 20, 1953
..
.
(336)
60
reproduces
Continued from page 78
caused the shut down
consequent unemploy¬
ment. In later months, because of increased demand in
world markets, foreign glass was diverted from the U. 5>.
market, thus
putting a sudden burden on domestic
window glass manufacturers. Though it takes time to
rebuild glass
furnaces and get them into ^operation,
Libbev-O wens-Ford has moved as rapidly as possible
acid has put five of its window glass furnaces back in
production since July and now has all units operating,
under current low tariffs
producing units and
gf.iss
several
of
supply all of the
enable the company to
which should
of its customers.
plate glass imports
and major operating units were shut down for repairs
and improvements.
All of LOF's plate glass facilities
are now in operation and
we are in a position to meet
the urgent needs of our plate glass customers.
We will be off to a flying start for 1955.
Orders on
hand are high, employment in the plate and safety
glass plants is at a peak, and new products such as
panoramic windshield and the new Parallel-O-Plate
•high-quality twin-ground plate glass are registering ex¬
window glass requirements
The same situation existed as to
normal
ceptional customer acceptance.
full output of
its revolutionary new facilities at the Rossford plate
glass plant.
Two new twin grinding plants and new
polishing lines, make Rossford the most modern plate
glass factory in the world.
These improvements, fi¬
nanced wholly from the company's own plant improve¬
ment and replacement fund, without recourse to loans
ot other
financing, have been under construction for
Libbey-Owens-Ford is now obtaining
three years.
than
more
complete letter-size document within three
a
improvements at plants in the Toledo
area, Ottawa, 111., and Charleston, W. Va., since 1946,
l ive approximately doubled the
plate glass making
capacity of Libbey-Owens-Ford.
Directors have recently approved a $25,000,000 expan¬
sion of our plate glass manufacturing facilities — the
equivalent of a large, integrated plant. Work is to go
forward on these new additional units in 1955 as rapidly
a:; engineering plans can be completed.
New construction planned for the Rossford and East
Broadway plants in the Toledo area call for investment
of. $21,000,000 in large new facilities aimed to substan¬
tially increase their productive capacity. The new plants
tentatively scheduled for the area include a large new
melting furnace, grinding and polishing equipment, and
additional bending and laminating facilities.
At Ottawa, 111., are scheduled improvements to grind¬
ing and polishing facilities, expansion of bending equip¬
The integrated
Union's
Western
reproduces
at
Pullman or airplane ticket in eight seconds
a
Rossford
is
there
also
planned
expanding
ing
is
furnace
tentatively
set
WALTER
atlantic cable system.
Go.
tages
will
Net
a
from
that
in
of
Financially,
in 1954.
operations
the
greater advan¬
even
1955.
successful year
income
exceed
confident that
am
achieved
be
Union had
tele¬
previous
Western
will
the
peak reached
new
pany's
private
wire
in the
quadrupled in
from
seven years,
$6,000,000
000 in
1952
in
and
1947
are
the rate of $24,000,000
Even
larger
JOSEPH
HON.
U.
S.
anticipated
cow
in
in
1955.
systems
and
are
contracts
work
for
economy
everyone,
being
To
such
processes,
of
legislative
Congress.
as
funds for
this
a
in
pru¬
reduce the overall spending of the
Fed¬
Cooperation between the Executive De¬
reduction
of
new
T. m.
for
automation
automatic
punched
during
that
we
with
diplomatic and in
get
along in the
our
good friends all over the globe.
respect, I feel
sure
that the Congress will co¬
for¬
We all know that foreign trade is essential
same
time, I
am
sure
all concerned.
installations
were
those
that the right and valid
adequately safe¬
conditions
because
which
much-needed Federal highway
expansion of
program.
be
can
needed
by every segment of our population in all states.
a
approve
of sales in
Olin-Mathieson
Chemical;
Airways;
Boeing
Airplane,
Interna¬
Con¬
needed reclamation projects as well
nationwide comprehensive water resources
partner¬
ship along Federal, state and local lines.
The
President
has
asked
for
Aircraft; Pan Amer¬
North
and
American
strides
are
also
Intrafax
to. business
being
concerns
for
new
Intrafax,
in
made
Service,
a
use
company communications between
A
seeing
is
a
1954
now
Installation, operates at 500 words
the
facsimile
in
sale
of
system
flashing intra-
their various offices
ready for widespread
a
minute,
more
than
three times the speed of the world's fastest typist, and
our
young men
extension
of
the
entering military service, but it
improve
existing health
improvement of medical
service
care
continue the construction
and
on
will
legislation to
take up the
for needy citizens and
policy of
new
will
health facilities
begun by the Eighty-third Congress.
The Small Busi¬
Act of 1953. also enacted by the
Eighty-third Con¬
ness
gress.
The
will be extended during the present session.
Eisenhower Administration,
be
reducing
and
from
changed
developed
Consumer optimism
lower prices.
at
these
will
products
be
These facts should indicate
confidence
of
has
also
the
highest
Recent
was
one
in
will
1955
been
rising level
a
strong.
record in
on
be
The
year
expenditures
show that similar
surveys
maintained
at
the
near
level.
optimism and business
indications
two
that
1955
will
confidence
be
good
a
but
are
year—par¬
ticularly for those who, by hard work, take advantageof the opportunities which it offers.
MORTON
MAY
J.
Chairman of the Board,
The May Department Stores Company
looking forward to
are
satisfactory
very
a
year
industry in 1955.
that apply specifically
Company.
Business
be
to
seems
from inception, has
The
to
May
recovering
satisfactorily from the moderate
cession
that
re¬
occurred
throughout
most of the country during a good
portion of 1954. During this period,
department store sales ran below
sales
in
comparable months of 1953.
However,
they have shown steady
improvement since the middle of
the year.
Christmas
The
season was a good
Company and other
retailers, and the consensus is that
the upward trend in sales will con¬
for The May
one
tinue
during the
coming months.
Morton J. May
to benefit in 1955
from our expansion program. We acquired The Sharon
Store in Sharon, Penn., in November,
1954, and will
benefit in 1955 from its operation. In addition, we haveWe
also expect
three
branch
-One
is
branch
a
construction
under
stores
that
are
sched¬
the coming year.
of
Famous-Barr
our
Company store
in St. Louis, which is being built in the new Northlands
Shopping Center in St. Louis County.
This store will
modern, four-story building with 337,000 squarespace.
It will be the largest department store
occupy a
feet
of
branch
in the St.
Center will
ing
space
Louis
for
The
area.
approximately 66
cover
more
Northland
acres
The
the
brick
steel
than 5,000 automobiles.,
been
store
to
It is scheduled to
branch
branch
store
expect
summer.
in
the
building
with
439,006
store
next fall.
open
under construction
for
expansion
is
limited
not
to
suburban
Kaufmann's store in downtown Pitts¬
major
a
fall opening.
program
In 1953, our
began
a
is located
in Denver. II
expansion
project
designed
increase its selling space by 50%—from 484,000 to
000
San
This store will
University Hills Shopping Center
also is scheduled
burgh
another
Valley outside Los Angeles.
third
the
We
interior work.
feet and will be the largest branch in the May
system.
in
the
for business by the end of
open
sched¬
finished, the roof is on,,
being installed, and a goocf
are
on
on
is
four-story-and-basement
a
square
The
walls
made
building
are
Fernando
have
framework
outer
has
start
Shopping;
and have park¬
Construction of this Famous-Barr branch is
draft
There is no rejoicing in
Congress will consider and act
efficiency
benefit
capital facilities.
for
Our
part of the price that must be paid to keep us secure.
The
.
Western- Union's
law, and Congress will comply.
and
constantly
1955.
Business
areas.
Can;
to
better
sold
readjustment.
The present Congress will continue the devel¬
will
market.
keener
has remained high and did not weaken during the recent
We
for great
as
stands
consumer
ule.
Eighty-third Congress enacted legislation calling
a
be
costs.
The
guarded by Congress.
gress
increasing
Martin
uled to open during
happy and prosperous America, and we want to see
The
networks
transmission
Among other
Aviation.
units.
this
increasing interest of
tional Paper; Rexall Drug; Hughes
and
must spend wisely for other gov¬
There is much room for economy
we can
dence,
for Trans-Lux Crispo News Service; Emery Air Freight;
leased
we
exercising this economy and with
opment of this new creation of highways—much
the country.
Rapid
going to maintain and improve our
By
field.
buyers'
a
must
re¬
alert to ways of improving products,.
the
Waiter P. Marshall
United States Government, linking 53 cities throughout
ican
defense,
ernment functions.
At the
for the General Services Administration of the
Continental
keg, noth-
be done to jeopardize
miutary strength. While much
^
of the tax dollar is
long
as
burns in the powder
interests of American industries will be
One of the major leased wire systems installed
was
Jr.
Until there
global
as the
fuse
should
inS
i
u
i
Hon. J. \x/ Martin,
w. m
of
the existing
it extended with complete fairness to
curd data.
1954
and
situation
still
offer
imagination.
Our optimism is based both on the fact that the out¬
look for business, in general, seems good and on factors
the
All of this costs money in
to
which
and
effort
for the retail
responsibilities
solution
conditions
for
guard to deter
the form of tax dollars.
to
others
these
on
That is why it is im¬
the aggressor.
of
the world, we
in
peace
perative to be strong militarily. We
must also constantly fight Commu¬
nist subversion.
These are primary
a
position
present
have what business has been
we
management
We
are
Union private wire systems is the
use
keep
and are
business ad¬
American
its
to
We are again in
Competition
will
armed forces in an
of atomic power.
operate with President Eisenhower in expansion of
already have been signed. One factor
accelerating demands for Western
industry in the
our
We have
artificial
the
economy
under
and, under pres¬
must be alert and
In
ex¬
and
conditions, to expand the
world
strength of
installed
many
there
our
international field
age
which
vanced
Consumer
is opportunity and
position strong in the
that
to keep
so
ent
eign trade.
Numerous
for
Massachusetts
from
legislative objectives of the Congress and of the
Administration are to maintain a vigorous and ever-
trade matters
private
under
same
The
enlarging
war
operating again under the competi¬
tive enterprise system—the condition
investments
Jr.
Occupying the position we do in the world today, it is
year.
increases
W. MARTIN,
Congressman
from
away
stimulus of a
Western
the country.
during the past year
would not have been possible without the enthusiastic
and wholehearted support of all telegraph people in this
country and abroad. Their efficiency and oustanding
devotion to the public interest in providing this nation
with the world's finest telegraph service, contributed
materially to our successful operations during 1954.
necessary
$17,600.running at
facsimile service sales
wire and
tensive
a
bring
to
Western Union's notable progress
com¬
to
now
made
were
in 1956.
climbing
moved
message
their destinations throughout
to
anywhere in the world.
war
wards
partments and the Congress can mean a tax
services. Sales of these services have
without
begun
the first facsimile tele¬
was
year.
facsimile
and
concluded was nearly as prosperous a3
nation's history and indications are
much better than 1954. The year has
be
wanting—an opportunity to perform
center at Richmond to
maximum, high-speed efficiency. The volume capacity
of the
Richmond center, which serves the VirginiaNorth Carolina area, was doubled.
An electronic brain
at this and other centers flashes telegrams automatically
high-speed
eral tax dollar.
One of the features of the year was
1955 will
them directly
and its trans¬
be impossible to enact legislation cut¬
ting taxes in 1955.
At the same time that we are appropriating adequate
With the accomplishments of the past
basis. I
year as a
This
alterations
Extensive
MARTIN
M.
in the offices of a
defense, it will
President, The Western Union Telegraph
The year just
that
graph installation in Canada.
Union's
ob¬
world leadership.
Federal controls have been relaxed
office
Montreal
Union's
Western
these
of
the best year in our
customers
connecting
firms
Montreal
of
number
is
The year 1954 was one of great progress in the
graph industry.
22,000
Desk-Fax machines were installed
with
the achievement
in
T.
these direct connections.
/
MARSHALL
P.
services,
Another
Western
20,000.
The
additional grinding and polishing facilities and
laminating developments are scheduled to be made at
tbe East Broadway plant, a mile distant, which is an
outstanding plant in the production of automotive safety
glass.
the
have been
supplied with
Union teleprinter machines,
bringing to 42,000 the number of customers directly con¬
nected with high-speed telegraph centers. In 1955 about
110,000,000 telegrams will be sent and received over
around
River
Maumee
the
on
direct
its
its
of
users
in the- world and prosperity at
goal. No Congress can do any¬
peace
still
immediate use by the pas¬
are being made now for
wire connections with
the telegraph company
added in its 1954 program about 7,000 Desk-Fax facsi¬
mile machines, bringing the total number of customers
served by these ultra-modern "electronic messengers" to
Rapidly
business
equipment for the two new twin-grinding plants.
The proposed new furnace would add nearly 50% to
Rossford glass making capacity.
Location of the melt¬
side of the present two large furnaces.
is
cooperate
President, Lion Oil Company
additional
some
goal of
That
thing but
jectives.
large railroads.
ment, and service facilities.
At
the
Ticketfax installations
senger.
two
Ticketfax,
marvel,
facsimile
latest
distant point, ready for
a
had
home.
minutes.
square
modeling of
completed
addition
feet.
a
This
the
purchase
and
re¬
19-story adjoining building,, which was
a year ago,
on
included
to
725,-
another
and the construction of a 10-story
adjoining site.
The
new
building
will be ready for complete occupancy by next May.
During their first full
these
year
of operation, we expecl
projects to add $56 million to
"
*
v
-
our
sales volume.
/
>
Continued
on
page
82
Volume 181
Number 5396
Continued
jrorn
.
.
The Commercial and Financial Chronicle
.
recommended to the Con¬
ready
79
page
(337)
in
gress
President's Budget
tributions to human welfare.
broadened
for
of assistance
programs
vocational
Our
rehabilitation
for construction of
and
nonprofit hos¬
pitals and health centers will
courage
greater
private
activity
state,
in
The extension of
vivors
that
to
last
with
year
en¬
keeping
our
diminish dependence on
This budget includes ap¬
charity.
propriations
for
the
health
im¬
provement program which I shall
outline
in
creases
in
special
a
some
In¬
message.
by
vo¬
rehabilitation, will be off¬
sbme ^reductions
in
other
Total expenditures for
welfare, health, and education are
estimated ' at $2.3; billion in the
fiscal year 195-3,5 about the same
programs/;
in
as
funds
eral
1955. ;v
•
Veterans' Services and Benefits
—-Expenditures for veterans' ben¬
efits continue to increase
sult
of
the
veterans,
growing
as
a
re¬
number
estimated
now
of
81
at
for
been
various' civil
of the government
mated
to amount to
$12 billion in
the fiscal year 1956.
Expenditures
for
veterans'
38%
of
benefits
civil
all
represent
benefit?
The variations'in expendi¬
price supports and
mortgage purchases account for
part of the changes in total bene¬
expenditures between the fis¬
cal
1953 and 1956.
years
year
tual
total
expenditures, include conti¬
defense
defense
home
at
abroad.
and
The
our
amount
in
the
consists
of
the
$40.5
total
year
fiscal
I have
issued
proclamation
ending the time period for acquir¬
ing further rights to readjustment
major national security
benefits
intended
mutual
the
Korean
net
expenditures
will
Estimated
for
veterans'
$200
be
$4.6
million
programs
about
conflict.
more
billion,
than
in
1955.
Interest
ment
and
General
estimated
are
to
amount
billion, $180 million
1955.
Govern¬
Expenditures for interest
—
In
to
crease
expenditures
our
collection
and
/government
steps
-
recommend
we
for
in¬
of
further
as
efficiency.
I
strengthening
also
our
ularly the Federal Bureau of In¬
vestigation.
Finally,
should
ment
employer
as
retirement
these
the
the
to
fund.
govern¬
its payments
resume
civil
As
a
service
result
recommendations
and
of
claims,
expenditures for
general government purposes are
expected to rise $344 million to
$1.6 billion in the fiscal
1956.
year
Special Classification of Expen¬
ditures—The budget expenditures
one-fourth of
is
our
other
parts
in
of
this
the
and
long-
effective.
was
made
cuts
in
basic
more
bonds.
In
e
securities, investors had t.ne
opportunity
to
buy
securities
than one-year certificates..
The
dur¬
past
money
year
was
ac¬
The
securities
Treasury
which
would
compete
for long-term money
available for
the construction
of new homes,
for business expansion, or for new
they
schools,
highways,
and
was
substantial
a
the short-term
in
Dec.
31,
public
the
1954,
re¬
debt.
debt subject to the statutory limit
$278.3 billion.
We expect to
be able to operate
this fiscal year
was
within
of
the
temporary
debt
limit
$281 billion voted by the Con¬
last
gress
beyond
this
The
August.
billion
$275
legislation
increase
provided
by
is, however, tem¬
The statutory limit will
back to $275 billion on June 30.
We
anticipate
the
that
heavy tax receipts during the
mainder
enable
of
this
that
fiscal
reduce
to
us
within
figure
1955.
and credit needed to
high level of business
a
refrained
under
the special circumstances
of
1954
from
issuing long-term
properly be made.
result
duction
1955.
policy
Treasury
longer
go
Management
major
tion
ef¬
,
each
financing during 1954. except for
borrowing through tax anticipa-,
porary..
tivity.
stimulus of further tax reductions
at the
We must always make adequate
year
start
the
in July,
already
be
legal limit.
sonal
1955
new
the
hospitals
Thus,
fiscal;
pressing against
With the present
pattern
in the first six
of
to
30,.
debt will
the
sea¬
collections,
tax
expenditures will exceed
cal year
debt
June
:
the
of
re¬
will'
year
by
-
the
At
months
receipts^,
of the fis¬
1956 by about $8 billion.
it will
not
be
Continued
state and local government
Another
possible
on
to
83
page
Important
"CURRENT
for
This
EVENT"
Long Islanders!
single
It
any
history.
country's
possible only
LILCO'S New 100,000 KW Generator
the
was
Now in
Operation at Glenwood Landing
by large
tax
law
revised
was
to
To meet the press
hardships for millions of
individuals and to reduce tax bar¬
our
The
budget
balanced
penditure
large
The third of its kind
ex¬
This
reductions.
abled the people to
placed in operation another
new
100,000 KW turbo¬
tax cuts.
no
the
from
company
generator unit at Glenwood Landing.
desirable to share
was
benefits
been
fiscal
current
if there had been
However, it
have
would
the
for
of Long Island's never-slowing electric current
requirements and ever-growing population, on November 1st
riers to economic growth.
the
for
some
through
intermediate-term
government expenditures.
relieve
year
incentive
management
sustain
people who will come of
working age in future years. The
as
burdens
tax
by
great prog¬
largest tax reduction in
in the
ity of
not only for those who are work¬
ing today but also for the millions
soon
effective
most
keyed to
Federal Reserve monetary policy
to help assure the ready availabil¬
econ¬
as
relief fairly
in a way
investment.
the
ing
the
debt
maturities
Policy
burdens and
improving the tax structure. Total
tax reductions of $7.4 billion be¬
year
increase
Debt
so necessary for the
There must be the means
Se¬
in reducing tax
came
and
reduction in
the
be
If so,
year.
individual
Debt
the
just
to
fort
for providing more and better jobs
can
will
relieve
and
national income
to
eco¬
a
taxpayers
the
included
Last year we made
ress
to
spread
all
which
which is
is necessary
to
among
fair
growth of the
sav¬
public
of
issuing
On
justified next
so
shall recommend
taxes
which
lective Service System.
Tax
be
take of nearly
serious obstacle
a
term dynamic
di¬
hope that tax reductions will
burden.
tax
is
progress
In ad¬
program.
not
present
and
under
the Coast Guard
are
an¬
ticipated increases in payments of
certified
budget,
I
I
his
policy
our
the
of
extension
time,
same
improving the struc¬
for
economic
through
the tax
of
The
programs
items of smaller size
many
The
low-enforcement agencies, partic¬
share
'
avoiding
and
ture
reductions possible.
to prevent
necessary
category, are related in varying
degrees to protection.
Examples
in
tax
management
property
toward
security
dition,
the
for
assistance
scattered
the field of general gov¬
ernment, I recommend that
billion
$6.4
than
less
$1
technical
in
last
Secre¬
laws
firm goal of this admin¬
a
At the
made in
was
1956
billion
recently
and
mu^
our
in sight.
nomic growth that will make such
of young
The expenditures for protection,
which account for two-thirds of
reve¬
to achieving both the
ings in expenditures and the
Congress,.
in the
from
anyone
omy
last
of
be found
may
future.
fit
increased
rected
no
made
laws
tax
directed the
also
changes
tures for farm
enacted
veterans
other
year.
nental
for
in that
are
istration,
final conclusions are
by the Department they
have
I
esti¬
are
or
However, further tax reduction
tary of the Treasury promptly to
make
recommendations
for
any
pro¬
grams
economy
remains
which
were
the
of
will be sent to the
1956.
benefit
level.
be
only
can
resulting from growth in
nues
As
year.
Decreasing interest rates during
The
and
services, and fur¬
savings in governmental
as
expenditures
the Trea¬
concerning
revision
the
reached
for interest in the fiscal year
security
our
reductions
tax
made
year.
borrowing.
year
recommendations
sev¬
longstanding
a
laws
tax
Increased
provided
one
sury Department has continued to
examine possible changes in the
change in the timing of interest
payments, have made possible a
forecast
for
lower
expenditures
benefits.
a
During the past
the past 12 months, together with
civil
women.
a
for
inflationary
(2)
or
a
in
sation and pension benefits to
by
in¬
corporate
for
essential
ther
expenditures for national security,
backlog of work.
for
becoming
Legislation
raised compen¬
also
has
eligible
life,
systems
commission.
are
million
ex-servicemen and
during 1954 or 1955
detailed review of all
and
extended
be
other
Any other course of action would
result
in
either
(1)
inadequate
department operations where
there
prin¬
programs,
cipally for public health and
cational
set
special
tradition of self-reliance
will
and
made
were
retirement
million
in
are
1953 and $216 million is pro¬
posed for 1956. No contributions
Federal
increased
contribu¬
year
and
sur¬
contribution and benefit rates
acted
This
fields.
10
the
fund.
excises
both
comes
$321 million in the fiscal
was
a
local,
these
and
persons
retirement
tion
pending
old-age and
insurance
more
en¬
Message
provision
State of the Union
existing rates on
my
Message
81
completed in the past two
years,
this
new
en¬
unit, when added to
generating capability of
have the extra
existing facilities, gives
our
more
a
total system
than 700,000 KW.
..
discussed
above may be divided
into four large groupings to show
the ends for which we pay taxes
the
also
and
items
which
make
budgets big. These groupings
(1) the cost rof civil opera¬
our
are
tions
and
administration,
(2)
in¬
terest, (3) civil benefits to various
of
parts
major
society, and
our
of
cost
(4)
protection
the
against
war.
to
money
which
they
expenditures for civil
ations
administration
and
have
government
been
oper¬
of
the
In
view
icit,
and
grams.
The
civil
cost
of
for
the
estimated
about
4%
to
of
penditures.
keeping
fiscal
be
the
year
$2.3
net
billion
and
for
plus the
repair,
operation
vilian
or
ex¬
This includes most of
government
ditures
1956
of
facilities
as
gen¬
expen¬
maintenance,
government
and
for
ci¬
regula¬
tory activities.
The
cost
primarily
civil
shown
operations
from
in
the
arises
the
contribution
made by the Federal
Government,
as
employer,
Island, because each ties into our entire electric transmission net-
prospective def¬
'
work. Each station
afford to have any
of
legislation
this
taxes.
entire
year
April
1
about
52
$2
with
47%
to
billion
for
extended.
a
full
Under
This
loss
be
also
year
of
billion
$1
a
created by
ities to
the
will
be
appro¬
1956,
year
automatic
an
duction
of
fiscal
(as
almost
billion
$2
the
many new
stores and
geared to meet the additional demand
new
household appliances and
new
facil¬
help Long Islanders work and play.
a
result of the limited space
latest unit has
program
re¬
ress on
with 1955)
under exist¬
is by
available, the addition of this
completed the scheduled enlargement of our facil¬
ities at Glenwood
there
revenue
compared
all kinds of
...
phenomenal and continuing popula¬
our
<e-
As
priate legislation is enacted by the
Congress extending them.
In
with
re¬
revenue
unless
schools and churches
tion increase. It must be
existing
automatically
April 1, with
"supply" must be geared to serve the countless new Long
industries that go
of
law, the excise taxes on liquor,
tobacco, gasoline, and automobiles
on
territory.
Island homes,
on
loss
revenue
a
helps to bolster the power "supply" for our
The
revenue
from
generating stations is important throughout the
our
Landing. However, LILCO's over-all expansion
concluded, since work is already in
no means
the first 170,000
KW unit at the
new
prog¬
Edward F. Barrett
Station.
ing
law, wholly apart from any
changes in tax rates.
The prin¬
cipal
the
plan
under
rate
is the completion
reason
adopted
which
have
taxes
ward
into
five
years
payments
been
earlier
of
service efficiency, it is our
ago
the
corpo¬
moved
fiscal
For, in keeping with LILCO's "Master Plan" for maximum
of
stepped-up
power
policy to stay always
a step
ahead of
needs that Long Island's rapid growth
for¬
continues to
years.
require.
Fortunately, this reduction in 1956
fluctuation
of
of
matically reduced under existing
the
budget
the expenditures classified
eral
pro¬
functions of the government
running
is
international
of the
loss
would
mestic
Each of
corporate tax rate would be auto¬
duced
years
because
through reductions in
obscured
many
themselves
retained
we cannot
further
by the large ex¬
penditures for defense and by the
variety and complexity of the do¬
for
for
the reduction in their taxes.
unless
The
spend
to
the civil service
will
be
creases
more
in
nomic growth
Because
isting
than
revenue
we
offset
by
due to the
in¬
eco¬
LONG
of the country.
must
revenues
keep
our
ex¬
intact, I have al¬
^
ISLAND
LIGHTING
Mineola,
New
York
COMPANY
i
,_1
82
(338)
The Commercial and Financial Chronicle
Thursday, January 20, 1955-
....
r
L.
F.
McCOLLUM
President, Continental Oil Company
The
past
the
of
has been
year
industries
the
in
readjustment for most
of
one
United
States, with activity at
generally lower levels than in 1953.
Primarily as a re¬
sult
of
the
decline
in
business
growth
first
in
nine
activity, the "normal"
demand
for
petroleum
months
mestic demand
.
the
the year, doonly 0.5% above
of
was
corresponding period
of
1953.
of an upturn commencing
Because
in
November,
probably
results, for
will
show
the
gain
year
on
the
in domestic
de¬
B- products was retarded. During the
order of
1%
a
2%
to
mand. The increase in total
demand,,
including exports, will be somewhat
-
less because
foreign
The
the
faced
the sharp
of
shipments.
three
major
decline in
problems
thatj
oil
industry during 1954,»
which still exist, were only indirect-?
L. F. McCoiium
at aj^ reiated to the recession
in
general business.
Early in the
year, the most pressing problem was that posed by the)
excessive level of gasoline stocks.
These stocks, which,
were already
too high at the end of the 1953 summer
driving period, were pyramided during the winter. No
progress was made in reducing the excess stocks until
-
July; by early December, stocks stood at the"same level
as
a
year earlier.
The only way that gasoline inven¬
tories
for
be
can
realistic
brought into balance with demand will be
refiner
each
sales
to
appraise
forecasts
and
his
in
stocks
relation
his refinery
govern
to
opera¬
tions accordingly.
The
importance
created
the
by
to
oil
the
oversupply
industry of
the
problem
of gasoline cannot
be
min¬
imized, but that problem is currently overshadowed by
the two other continuing problems:
-
(1)
The issue of Federal control
the
over
production
of
natural
oil
industry, to business in general, and to all the natural
consumers
gas
threat
future
demand
and
"
*
oil
oils.
production
from
exports
and
reflected
level
products
in
of
The year
because
a
1954
United
on
a
the
of
the
necessary
balance between
The
-
and
the
rapid
refining
United
sup¬
increases
States,
pressure
of
crude
about
and
in
operations
and
are
of foreign
the domestic industry.
decrease
States
to
'
4
proper
a
all
for
duction, in the face of
-
States,
responsible for the increasing
crude
1953
oil
crude
reduced
have
is
the'1 United
supplies of gas.-.
foreign
now
in
concern
finding and developing of the
The attainment of
(2)
ply
the
to
This matter is of vital
gas.
2%
This
from
condensate
the
pro-'
moderate increase in demand.
ahead will require the utmost effort
on
the
part of all segments of the petroleum industry to secure
satisfactory solutions to these problems.
4
/
Continued
on
page
84
Volume 181
,Number 5396
Continued
from
■.
'.The Commercial and Financial Chronicle
.
81"
page
(339)
the taxpayers'money.
*
tinue
to
President's
-
Our
objective
provi¬
being
of
dent in financial matters has
billion
and
We recognize
debt
limit
pression
is
that the statutory
valuable
firm
of
intent
fiscal soundness.
tain
ent
as
With
to achieve
though
have
a
we
debt
it.
Therefore,
Alternative
no
Congress
environment
balanced budget, even
have made substantial
toward
progress
se¬
have not yet been able
we
to
increase
pri¬
take
government out of competi¬
tion with private enterprise.
We
have
the
made
past
proved
two
that
system
years,
free,
a
we
the
can
make
war
natural
our
to peace with¬
justment from
ad¬
tive.
assure
the
factor
has
been
people
in
this
achieve¬
the confidence
in- the
These
of
ment,
of the
abi'ity
stable
government to bring its financial
affairs under control and to conduct them in
in
a
tinue
a
responsible
SPECIAL
efficiently.
It will put first
things first and restrain spending
to items of high priority. Our suc¬
cess
thus
far
in
expenditures,
the
reducing
the
and
is
best evidence
the
of
ness
in
the
the
Providence Branch
men
effective
most
of solving group and national
tion
PROVIDENCE, R. I.—Savard &
with unshaken dedica¬
the
to
is
we
shall
liberties
Hart of Montreal, members of the
in
set
for
to
sustain
shall
we
meet
Toronto,
ourselves
welfare,
in
Stock
Exchanges,
branch
promoting
happiness,
Montreal
and
CLASSIFICATION
OF
office
have opened
at
188
for
expenses
operations
and
In
years.
BUDGET
and
Lloyd
B. Averill.
The firm
January 17, 1955.
in U. S. unlisted securities.
partner¬
will
con¬
utmost
care
which,it
uses
billions)
1955
1954
aciu-1
actual
$1.9
$2.2
$2.3
$1.9
esti¬
-
-1956 estimated
Amount.
mated
Percen
u
civil
5.7
5.9
11.5
12.2
25.6
$1.9
4
$2.3
10
6.4
6.5
6.6
13.4
11.6.
13-3
52.0
47.9
41.7
41.5
.1
.3
....
—.9
44.1
-
6.6
„
46.0
—.7
.
Unclistribrted
65.4
12.0
u
.19
.
67
(reserves and
,1
adjustments)
Total
•
RESUME
(Fiscal
OF
74.3
THE
■
62.4
63.5;
100
BUDGET
In
years.
6.7.8
billions)
y
-1054
Budget
_
.*■
ob'.igational authority:
existing legislation
Under
proposed
.
•
.
.1953 actual
document
1955
1956
estimate
estimate
.
estimate"
Actual
'
.
Under
-
i
•
:
■*,
$80.3
$72.2
$62.8
$57.2
.1
5.5
60.3
72.2
62.8
57.3
58.6
64.8
!__
.
68.0
64.7
legislation
$53.1
*
_
Total
,
obligational authority
new
-Budget receipts:
•
■
'
'
Under
1
existing
Under
proposed
legislation
•
Under
existing
Under
proposed
Net
,
Budget
Public
budget
debt
Balances
at
of
forward
"These
Jan.
9,
64.7
59.0
75 6
67.8
63.5
legislation
2.3
end
end
of
of
1.9
77.9
67.8
63.5
62.4
9.4
9.)
3.1
4.5
266.1
269.8
271.3
274.3
276.0
78.4
year—*
,
67.4
68.0
53.9
refer
LINKED
2.4
49.6
AND
carried
year
estimates
60.5
-■
74.3
_
appropriations
at
68.0
74.3
legislation
_
2.3
60.0
64.3
expenditures—.
deficit
57.7
.2
budget receipts
budget expenditures:
Net
58.8
.
legislation_______
Total
-
to
the
1954
budget
as
presented
to
the
Congress
BY
MUTUAL
NEEDS
on
1953.
At present
U. S. investments in Latin
Company has for
many years
America, totaling six billions of dollars, are
HOW ARE YOU ON
program
larger than in
fields of education,
other part of the world
any
American
READING
is
couragement
construction of communication and trans¬
portation systems, United Fruit has been
anxious to
private capital
to the
supplant
can
great benefit of every portion
Western
is
can
.
economy
in
establishing
acres
ductive farm lands.
Such activities
But
private funds in Latin Amer¬
multi-crop
a
in Middle America and transform¬
ing thousands of
.
.
of the
Hemisphere.
The need for
ica
instrumental
en¬
proper
government loans to neighbor nations
PALMS?
health, sanitation and
promote
is
indication that with
strong
a
sister republics. More, it
business
our
engaged in
of privately financed aid in the local
public works. Itr addition to this and the
except Canada. Here is proof positive that
production in
the results,
of jungle into pro¬
-
are
not the
whole
answer.
measured in terms of im¬
proved living conditions and the develop¬
hardly be exaggerated; for no nation
ment
completely independent. Rather is it inter¬
of useful skills, do demonstrate that a
dependent with the countries that share its
THESE FLORIDA ADVANTAGES CAN TELL YOUR FORTUNE!
3 GROWING
Florida's
by
climate
an
which
in
new
ventures
So have fun in Florida. But look behind
forward-looking,
with
sound
a
based
on
commerce,
and
aggressive
expanding
fast-growing markets...
ment
to
that invites
serve
new
a
future of
work
ever-increasing mutual
i
ASSURED!
advantages
for
United
relocation or
Address:
Fruit
Company
General Offices: 80 Federal Street, Boston 10
Industrial Development
3100, Miami 32, Florida.
COLOMBIA
EL
POWER A
spirit of laws
of the countries wherein it operates, to
ventures can be
Service, P.O. Box
FLORIDA
con¬
benefit.
their activity centers.
fully reolired
only by extensive "on-the-ground" study. We II
gladly assist in securing information from local
sources.
the
America
the Americas... and,
POWER
SUMMERS-
full
among
ELECTRIC
TEMPERATE
MIL0 WINTERS!
new
serve
in strict accordance with the
helps the other.
United Fruit
where
Florida's
be
company's firm intention to
usefully to
toward
DEPENDABLE
entirely
tinue
purchase in abun¬
seeking to better conditions in countries
a
capital... and richly
rewards constructive investment.
HAVE
HIGH MORALE!
can
make.
It is this
Many of our international industries are
WORKERS
PRODUCTIVITY!
and rapid industrial develop¬
can
good earth to the south
FRIENDLY!
CONTENTED
HEALTH
IDEAL LIVING...
state,
economy
amazing agriculture, increasing
state
the Americas,for the
of private aid
most worthwhile investments North
powerful link between
kets of North America
INCREASE
beaches, too, at the "other" Florida...
a
GOVERNMENT
LEVELS
the
forged
dance. Each
HIGH
private enterprise grow and prosper.
the
aspirations. Such mutuality of in¬
produces in abundance while the good mar¬
POWER!
and
has
FAVORABLE-
BUYING
HIGH
equally stimulating busi¬
program
terest
TAXES ARE
/
MARKETS OF
and inviting tropic climate
warm
is matched
well-planned and efficiently administered
needs and
ness
spe¬
cializes in Canadian securities and
DWIGHT D. EISENHOWER
EXPENDITURES
actual
_
Protection
in
manner
1953
Interest
)
Benefit
Street, under the management of
designed to
are
the
exercise
1952
administ.
benefits
in
administration
to
actual
.
a
dollar.
the
NET
steps
-
'New
Canadian
our
and
prosperity.
the destiny of this country, a faith
equal to that of the founders who
continue
and
far surpass the objectives we now
human
faith
found
Savard & Hart Open
rights;
that
pursuit of peace and
justice at home and in the world,
earnest¬
indestructible
an
be
problems;
of our efforts.
With
to
way
taxes,
deficit
confidence
intelligent cooperation of free
the huge government organization
more
full
Divinely
are
inalienable
We are developing
resources
1951
Civil
administer
to
men
high and rising employ¬
growing prosperity, and a
This
manner
(Fiscal
Current
continue
all
with
ship with the state and local gov¬
ernments and with private initia¬
A
major
will
housing
in
progress
catastrophe.
demo¬
out serious economic disturbances.
ment
with
monetary
the
I
it
that
and in protection against personal
During the
cratic
sound
for
We have encouraged
limit.
have
We have re¬
the
vate initiative by starting to
policy.
but to ask the
again
in
crushing load of taxation. We have
improved the structure of the pub¬
lic debt and provided a favorable
pres¬
requirements for national
curity
paid
dividends
paying
general well-being.
main¬
to
still
duced expenditures and' eased
ex¬
an
is
held
endowed
our
and
period without exceeding the $275
limit.
con¬
must
we
security, well-being,
prosperity with the fewest
possible number of dollars. And
Budget Message
the government's bills in that
pay
It will
purchase what
have for
83
LIGHT COMPANY
•
SALVADOR
COSTA
•
RICA
•
GUATEMALA
CUBX
'.<+
•
DOMINICAN
HONDURAS
•
REPUBLIC
NICARAGUA
ECUADOR
•
•
PANAMA
The Commercial and Financial Chronicle
(340)
84
.
.
Thursday, January 20, 1955
.
\
appliances point
82
Continued jrom page
demand
McCORD
king
A.
The
1955
customers and
insignificant withdrawal of farm
acreage from cultivation.
Cash farm income in 1955 is esti¬
mated to be about the same_ as"cash
farm income realized in 1954.
This
estimate is predicted on the belief
_
1
could
but
if
increase
conclusion
conservative
:The
is
level
retail
the
at
...
nificance to the manufacturers of farm
Action
correct
to
abnormally
volume
high
down
was
hands
of
burden
manufacturers
equipment become
duction
<
will
1955
of
excessive
and
dealers,
prices
for
.
for
inventories
,
mand
which
area
rate,
-
nomic
V
large
of
number
prises.
The
demand
service
commercial and
is
We
the
health
of
of
when
the
1954
Yet
the
was
served
an
popula¬
for
We
favorable, and
predicted.
On
Dec.
6
is
cation
Public
construction
a
Service
.
*•
large
is
uncertain;
number
of
during 1955,- based
on
ready
under
and
construction
that exists among- builders in
an
such
sound
is
that
expected increase in
business
and
Gas
Company
is
every
customers
the number
the
1955
the
prospect
should
requirements.
T.
will
American
of
indi¬
will
homes
be
al-
prevailing optimism
this area.vThis factor and
expenditures for home
that
are
be
be
a
year
1955
or
Accordingly,
facilities
the
of
Michigan
the
addition,
a
velopment has
Gas
Company
recent
of real
Gas
accomplish¬
system.
issuing
a
certificate
of
The
rich
area
to
area,
Detroit,
in
gas reserves,
proven
and
total
Company
to tie in
about
$154
The construction of
the
expenditure
American /
of
approxi- •••*
1
'
and
an
throughthe
mills
to
the
construction
worker;
manufacturer, the salesman and the
Court
Power
the -appliance
installer.
proceedings to review the action of the Federal V'.
Commission
in
granting American Louisiana its
certificate
have been brought by a
minority pipe line
supplier, which unsuccessfully sought to block the new
pipe line before the Federal Power Commission.
At
the
time this
same
suppl)e^?>i& actively seeking yio^par-n*
tially abandon its service iter.
minate
pects
service at
that
Ann
us
^t/Detroit and
to
ter- '
Arbon;f American Louisiana
compliance
wilL"shortly
construction
When
/
begin.
can
the
American
:
v
.
Louisiana
line
goes
•
into
i*
'
•
opera¬
tion, the American
the first time in its
Natural- Gas Company system for
history will be in the very desirable
position of controlling the major portion of its gas
supply
and transmission facilities.' ;
.v
'
•
These
in
developments,
to
in imy*opinion,
System
our
its more
than
half
it
as
enters
upon
will
PATRICK
B.
Hartford
for
has
Railroad Company
the
does
railroad
been
never
not
very,
year
McGINNIS
President, The New York, New Haven
outlook
be
another
century of successful operation.
a
industry
more
stem
from
&
.
-
as
promising.
1955
gets
This
en¬
recent
past perform¬
for the rails with few exceptions in 1954 experi¬
enced
sharp declines in
revenues
and
even
ings.
more
losses in
severe
as
a
whole
industry
achieved
earnings
of
barely
3%
during the best peacetime business
the
nation's
instead
history.
sighted
and
factions
in
a
The
its
indus¬
revolution
months.
past
in
place in
proper
field.
undergone
in
circles is
faith
upon
has
public
earn¬
The
in
o{
short¬
The
backward
managerial
industry have lost
to
the
progressive
element.
railroads, including the New
Haven,
the
have
had
management.
a
There
clean
are
sweep
new
Patrick
in
B. McCinnis
ideas,
action, and.-the will to succeed. The flame
competitive spirit has spread, from a few sources
progressive
of
Ralph
an
T. McElvenny
potential
will provide the long-range solution to the
throughout the industry.
The transportation pie in
one.
Steel
1955
promises to
be
a
big
production is climbing, with experts predict¬
"
many
areas
for
new
line, which will make available
large increase in gas supply to all of our markets in
Michigan,1;
Wisconsin, Iowa and Missouri, will have an initial ca¬
pacity of 300,000,000 cubic feet a day and can readily
be
to 20%
over
the
1954's output. The public's
new
automobile models has
industry, fresh from the record. activities of 1954, is
plunging into what promises to be an even better year,
With all industries
distributing companies to lift the restrictions
;" Transportation is the key which will tie this produc¬
in effect during the
a
day.
compressor
The
new
past several years
on
new
gas
heat¬
ing customers and" provide heating service to more than
additional consumers, including 125,000 appli-
375,000
up
this industry in forced draft operation. The construction
searching-for ways to cut costs while,
production, the market for capital goods re¬
mains strong,
v
•/
i,-(.
by the addition of
500,000.000 cubic feet
our
a
capacity to
supply will en¬
expanded
able
ing gains of
enthusiastic response to
years.
The
,
service
our
boosting
tive
effort
together. Lurpber tgrown.
'
ex-
be'completed with
certain conditions specified
"by the Federal. Power Commismsion in its certificate and-which must be
met before
sorts
'gas shortages which have affected
*
additional 100,000 tons of steel will'be used in the
man¬
ufacture of home furnaces' and" other
gas: equipment.
Thus the economic benefits of the
expansion will ex¬
tend from the producers'of raw material
try
from
will
..
ac¬
Louisiana,
constructed
supply,
in
result
de¬
largest
our
vAmerican
be
Gas
Pipe Line Company
gas
economy.
will
transportation
Company, for a 30-inch
be built from southern
will
Consolidated
expanding
to
the
to
Louisiana
estimated
an
effects of our new pipe line will not
expansion of the gas supply in our mar¬
desirable as that is, but will, extend" to the en-„
as
voice
which
cost
the cost of
beneficial
Some
service,
System.
our
will
principal senior money to finance Amer¬
ability to regain its
and
necessity to our
subsidiary, American Louisiana
Line
Michigan
Wisconsin
The
be limited
convenience
line
companies
our
Company of New York.
new
pipe
with
The optimism in railroad
by the Federal Power Commis¬
sion
heating
ance,
-><
favorable
the
enable
line
together
additional
underway
Continue
longer.
most
been
house
Louisiana will be raised
through the sale of $97.5
million of first mortgage bonds to the
Metropolitan Life
Insurance
Company and the Mutual Life Insurance
we
prosperous
may
will
Louisiana
and,
couragement
Natural
remunerative
facilities
new
American
available
McELVENNY
Natural
these
conditions
into
tion
our
million
year
In
there
new
consumer
The
$130
the basis of
on
every
ample funds
of
extensive storage fields we can readily
our
1955 with confidence.
believe
Pipe
Electric
added
.
rapid
there
and
feet
heavy winter peak demands occasioned by this
all,
helpful
field
stable
cubic
heating load. This makes
large proportion of our
the 14 other customer companies served
by our
present pipe line almost to double their supply and will
assure
adequate gas for the continuing growth of the
150 cities and communities served
based
commer¬
even higher .records will
be- -estab¬
While the duration of the current boom in
resi¬
that
is
for
well
anticipating that
dential
the
from
is invariably favorable
financial
economic
day's sendout of gas
occurred, which amounted to 544,908,000 cubic feet (525
Btu equivalent gas), or an increase of
26% over the 1953
record day's sendout.
lished.
flow
the
billion
many
and
Consolidated Gas Company and Mil¬
waukee Gas Light Company.
Indi¬
record
a
In
cations
addition to. these indications of an
improvement
business, there are the new records achieved by the
company in December, 1954.
On Dec. 21 a record peak
electric load of 1,850,100 kilowatts
occurred, which was
137,500 kilowatts, or 8% greater than the record peak
1955,
benefits
Industrial
activity and prosperity are running at a high level in
the Michigan and Wisconsin areas served
by our two
distributing subsidiaries,
Michigan
of
beginning of the
In
For
face
and
in
1953.
the
consideration
into
take
year
service.
...
President, American
1954'as compared with 1953.
in
with
meet the
The
Lyle McDonald
Although industrial
sales of electricity declined moder¬
ately in the early months of 1954, the increases later in
the year were substantial
enough to offset the earlier
declines and to bring about a net
gain for the entire
load
promise of reaching higher
at any time since the
1953.
•
«
of
RALPH
economy
residential and
to
load
in
purposes.
year
all
can
corresponding months of
the prior year in sales of
electricity
cial
the
situation
during 1954, ex¬
by month
gains
month
and gas for
market for most
of a
sound and healthy condition.
Capital accumulation has
been proceeding at a satisfactory rate, and the banking
the
over
should
economy
ment
the
supply
steel
past experience.
economic
generally
company,
perienced
the
not too
was
decline
McDonnell
scientific and tech¬
nological developments that are likely to dominate our
economy over the next decade. These new developments
are not only a challenge, but should provide a mainstay
of
support to our entire economy.
Whenever rapid
changes and new developments are taking place, they
lay the foundation for an expanding economy.
While
technological changes often produce temporary mal¬
adjustments in some sectors, the end results for the
which
area.
for
year
A.
than
year
year
we
residential,
territory
outlook
country at
the
a
the
surrounding
The
Wm.
re¬
view the future with considerable encourage¬
can
ment
enter¬
growth
by
also
every
in
peak production
farm
serves
of the
has
the
pipe
industrial customers
indication
an
the
commercial
continuing
for
80%
activity gives
the coming
-levels
Jersey. The company supplies
great variety of industries and a
gas to a
occurred
of household appliances. Demand for manufac¬
tured goods has been improving and this promises to be
an
added stimulus for the coming year.
Overall eco¬
New
electricity and
f
high
a
emergency.
of .the line and all of its tela ted
expansion will provide
150 million man hours of
employment.
The entire pro¬
gram will require 500,000 dons of steel
..
it has been par^-%
homes
new
at
the
to
.
types
entire
Company
includes approximately
tion of the State of
for
of
seasons
as
essen¬
vital
which will be spent by
gas producers^ distributing com¬
panies ^and gas consumers. Who will purchase new gas
burping equipment and 'appliances... The :co'nstruction
:
,
termed,
national
of gas
are
mately $400 million within '.the-next two years and an
additional $100 million will; bt spent in the. following
three years.
This totaf expenditure includes the money.
and satisfactory
level and this has maintained a good
In
Gas
been
of
natural gas to meet the winter
it feasible for us ,to devote a
kets,
period of general prosperity.
a
mained
Public Service Electric & Gas Company
and
-•
ticulaiTy^'encottraging to note -the /
rise in.consumer expenditures. De¬
was
Mcdonald
Electric
warm
Louisiana
sales.
to
supplies
underground storage reservoirs in
territory, we are able to store during the
tire national
again- -in
a
In' other
are
'In recent months
the successful enterpriser.
Service
is encouraging.
1954, while sub¬
was in the overall
year
adjustment of .the
past year appears to have about run
its course. Indications are that busi¬
additional
ican
3% decline,
a
large
for
gas
extensive
million.
words,^ the 1954 recession, as' it has1.
Chairman of the Board,
Public
coming
that took place in
parts of the economy,
relatively moderate and
healthy" ratio
firm, and increased plant proimprove profit possibilities.
reasonaly good market year for the
lyle
the
during
event
service
our
and
high level of busi¬
a
inventory
ness
products of farm and industrial equipment manufac¬
turers, with the optimum in competition, and reason¬
able rewards
and
McDonnell
duced in the country was concerned;.
»The
more
a
a.
provide
country and
facilities
previous year so far as the
value of all goods and services pro-
combine to
presents
to
Electric
from the
during
in
Service
some
sometimes
inventories
also
by
additions
continuation of
a
amounted to less than
,
the
and
increases in. demands for its services.
activity
picture
selling by manufacturers was off consider¬
ably more and production schedules were set at a sub¬
stantially lower rate. Consequently, with retail sales of
farm equipment during 1955 approximating retail sales
in 1954, the manufacturer can look forward to a year
of slightly higher sales, at wholesale, and a substantial
increase in production.
..
<
/
> !/
r,
'
Without
progress,
readjustment
made
1952
the
from
will
for the continued growth of industries which
tial to the
prosperity of the
obtained
Company will have adequate plant available to meet
.
equipment.
inventories
in
or
stantial in
wholesale
-
been
Public
extensions
of
reason
ness
by manufacturers and dealers in 1953 and con¬
tinued through 1954.
During that period of time, al¬
retail
have
day from each of two natural gas suppliers.
The
begun
though
supplies
gas
President, First National Bank in St. Louis, Mo.
by
dealers since 1953 is of greater sig¬
and
manufacturers
inventories
in
reductions
the
However,
natural
The outlook for
maintained at
be
1954 rate.
the
J.
william
of' farm'
sales
that
will
It
with
is made
'*. :*
credit
..
'
equipment
turbine-
the construction
on
450,000-kilowatt generating station at Linden,
Gas plant facilities are being enlarged and addi¬
the expected
1954 level,*
the
long-term
more
available to export customers..
185,000-kilowatt
new
a
new
Gas
'
be maintained oh
sales should
Export
a
By
will
nation
of
completion and work has started
completed
equipment sales throughout the balance of the
continue through 1955 the same as 1954.
Farm
.
indicated.
now
construction
begin¬
ning with the 1955-56 heating season. The Federal Power
Commission has approved the delivery to the company
of an additional 25,000,000 cubic feet of natural gas per
that domestic consump¬
tion
will
increase
slightly.
This
forecast takes into account the large
accumulated surplus of certain farm
commodities and the downward ad¬
A. King
McCord
justments in U. S. Government farm
commodity support prices.
Last year this country experienced
its most wide¬
spread drought.
The area affected spread in a large
arc
from
the
Southwest, north to southern Illinois,
and up into parts of New England, registering, in cer¬
tain sections, three years of insufficient moisture.
A
substantial
increase in farm equipment sales is an¬
ticipated from this area of the country, if the drought
is
who, without solicitation, have requested
househeating.
to
tional
prices, and
as
for increases to
cants
is
Due
N.
price stability
has been
in agricultural commodity
relieved
sales
in
of
achieved
is
residential
nation
tng
an
that
the
industrial
generator unit at Burlington Generating Station is near-
There will be only
1954.
and
existing installations.
The
expenditures
such
of
level
reached in
in
services.
gas
During 1954, over $80,000,000 was spent for additions
and improvements to utility plant, and in 1955 it is esti¬
mated that similar expenditures will reach an all-time
one-year high of over $.90,000,000.
the farm and industrial machinery in¬
dustry will enjoy a modestly better year, sales and
profit-wise, than the industry experienced during 1954.
Public and private construction expenditures during
1955 will be greater by 5% than the
high
and
commercial
ence.
new
During
improvement
an
for
equally encouraging and is substantiated by the exist¬
of a backlog of applications for service, both for
Oliver Corporation
President, The
to
electric
for
outlook
on
the West Coast
Continued
on
page
86
*
.
.
;
Volume 181
Number 5396
.
.
(341)
The Commercial and Financial Chronicle
.
from
shortages.
Drought-hit
farmers
must be given every opportunity
30
page
Attacking the Faim Price Squeeze
These
cept with the consent of the indi¬
The
reason
basic crops is lower this year
the
for this order is ob¬
vious. It is not the function of the
than
Department
of
Agriculture
to
farmers, directly or in¬
directly, as involuntary members
of any organization. I am pleased
to report that most cooperatives
and farm
organizations are ap¬
of
As
we
at
by
essary
come,
it
if
comes
from the curtailment of
and production made nec¬
all,
acreage
accumulated
suprluses
this
earlier program.
In the case of such feed grains
oats, barley, grain sorghums
and rye—which have been under
the
under
ance
produce as much feed as pos¬
sible
when
into
move
this
a
direction, rather than any revolu¬
tionary unheaval. Adjustments in
the
level
of
support
will
be
tion
line
with
will
of
supports
to
here
cost
tion
than if the government were
bid¬
in
this bal¬
see
primarily through
consumption both
abroad,
rather
than
continued strict produc¬
higher price. This will en¬
the movement of these
grains into channels of consump¬
tion, rather than into storage.
ding
a
I
program
for
the
work
New
Farm
convinced
am
bur
of
the
in¬
All
Americans
new
share
the
in
benefits which spring from a free
help restore the function of
price in our marketing system.
society. The rapid advances
brought about through the ap¬
plication of agricultural research
and education and improved mar¬
keting methods have permitted
millions of people to leave the
We
best insure
can
a
continua¬
tion
of our great progress as a
nation by maintaining a free and
fluid economy. Government policy
must
Program
that
Flexible
to
supports
courage
Defends
controls.
freedom
pursuits
with the changing times that has
helped to make us the most pro¬
ductive country on earth.
will
farmers
basic
the
dividual to shift
and.
through
less
to
available
at
restored
increase
an
is
ahead.
years
our
not be permitted to freeze
agricultural
production
in
land
in
recent
decades
for
other
enterprises
in
the
of flexible price supports uneconomic patterns. Neither cities and towns. They are mak¬
basic
commodities
will should we freeze people in farm¬ ing the automobiles, the radios,
balanced
better
toward
new
ing
in
or
any
productive
Continued
other occupation. It
on
page
87
for many years—
1955 will be at 70%
parity. This represents
from
85%
the
a
reduc¬
v
»
supports pre¬
vailing during the last year.
It
President
continue
If
come.
the
supports
price
the level for
ages
and
Eisenhower's recommendations.
Tobacco
do
in
And I should like to
system of discretionary flexible
the Agricultural Act of 1954,
with
its flexible
price supports
for basic commodities, will get its
first test. It marks a change of
in
rains
continues,
lower price
will make feed grains
drought
as
year,
gradual,
will
new
agreement with
in
philosophy.
it will not be because
flexible price supuports.
The
last,
reduction
recruit
parently
indicate
figures strongly
that if farm income from some of
vidual farmer.
production
to
Continued
35
is
apparent that large acreadiverted from wheat, corn
cotton
will
go
into
feed
grains—more
be
supported at 90% of parity and it
which
probable that will also be
the level for peanuts and cotton
direction.
seems
saw
a
than
even
in
Thirty-three Years of Service
....
1954,
sizable shift in this
Continued
supports
at
of
parity could only .j mean
in 1955. Current estimates are that that the government would wind
corn will be supported at 88% of
up as the owner of a considerable
of
the
increased
feed
parity. Rice may be supported at portion
about the same level as last year grain production.
•
At the same time, the serious
if marketing quotas are approved.
Only in the case of wheat will and protracted drought which still
price suoports be at the minimum grips more than 900 counties in 18
states has created severe local feed
of 82 \'z %.
85%
In
PETROLEUM
WARREN
CORPORATION
has become
cars,
important factor in the Industrial, Chemical, Agricultural
an
Domestic
and
life
Warren's
sumers
America.
of
alone, traveled
Natural
on
in
them
Additional
operations.
the
past year Warren's fleet of tank
Gasoline, Warrengas and its other products to con¬
who utilized
economical industrial,
and
In
than 95 of the Nation's railroads, carrying
more
countless ways
to provide more efficient
chemical, transportation, farm and domestic
large
quantities
were
by
transported
tankers,
barges, pipe lines and trucks.
PRODUCTS MANUFACTURED AND
MARKETED
NORMAL BUTANE
CRUDE OIL
HEXANE
WARTANE
HEPTANE
ISO-PENTANE
GASOLINE
NATURAL
WARRENGAS
NATURAL
GAS
ISO-BUTANE
These 6
states are
served
if by the Atlantic Coast Line
EXPORT TERMINALS AND STORAGE FOR OVERSEAS,
COASTWISE
GASOLINE
VIRGINIA
-NORTH
OR
CAROL/HA
INLAND
AND
SHIPMENT
LIQUEFIED
NATURAL
OF
PETROLEUM GASES
.•
.
r
-SOUTH
CAROLINA
Corpus Christi, Texas
Texas City, Texas
Warrengas, Houston, Texas
Newark, New Jersey
Baytown, Texas
Tampa, Florida
Mobile, Alabama
Pensacola, Fla.
Port
Authur, Texas
ALABAMA
San
In this attractive
vantages
area
you
will find
many
Port Everglades, Fla.
Pedro, Calif.
ad¬
GENERAL OFFICES
including...
National Bank of Tulsa
Building, Tulsa, Oklahoma
-9
(*
Ready
access to a
variety of
raw
materials
BRANCH OFFICES
An
adequate labor supply
Omaha, Nebraska
*
Reasonable
Houston, Texas
Midland, Texas
Mobile, Alabama
operating costs
Louisville, Kentucky
New
Madison, Wisconsin
Columbia, S. C.
Tampa, Fla.
San
Fort Worth,
A climate suitable to
For
year-round operations
St.
Texas
Louis, Missouri
York, N. Y.
Pedro, Calif.
complete details write R. P. JOBB, Asst. Vice Pres.
Atlantic Coast Line R.R., Wilmington,
N. C.
FOREIGN
TRANSFER AGENT: J.
REGISTRAR:
OFFICE:
London, England
P. MORGAN & CO. INCORPORATED
THE CHASE NATIONAL BANK
OF THE
CITY OF NEW
YORK
id
k
\
86
<
The Commercial and Financial Chronicle
(342)
Continued
from
largely
84
page
as
result of the application of the partnership
a
approach.
shipped
East
the
to
fill
to
United States. Almost everything
the
in
this
or
all
It
to all parts of
used or consumed
1955 will have been handled by one
transportation systems.
secret that the railroads have lost ground in
country in
of
is
our
no
quarter
century
At one time, rails held a
they are but another transport
more.
or
virtual monopoly. Today,
Where they used to have all, they now have only
intercity commercial tracellers. Their share
of freight ton-miles has declined from almost 100% to
Oklahoma.
agency.
half of
the
A
part of the
railroad's
tangle of government restrictions and regulations which
have tended to promote other transport media at the
expense of the railroads and the taxpayer. There regula¬
^
tions, imposed during monopolistic days, have lingered,
regulations are wont to do, beyond their need. There
is good reason to believe that the government, when
as
projects too costly
One
such
Colorado
project
River Basin.
of
Managerial qualifications have too often
the basis of experience alone, rather
ability. The urge to maintain the status quo,
decided
than
on
upon
do
to
*
most backward
among the
as
businesses.
been
,
house in order. The industry
own
things the way they have always been done, was
strong on railroads.
As a result, the railroads found themselves trying to
compete in a 20th century economy with 19th century
ideas and equipment. We have hundreds of thousands
of freight cars, all with bearings little different from
those use don Caeser's chariots. Our refrigeration cars
the
are
only
dependent
type
cold
of
the
in
storage
nation
still
ice. Our coupling gear has not changed
upon
in 50 years. Passenger cars carry patrons
five feet above
the rails, and for every passenger seat there is two tons
of steel and an investment of over $2,000.
There is every evidence that the American railroads,
having recognized their shortcomings, are ready to do
something about them. The rails realize that, at proper
rated and with the proper equipment and service, they
have
tremendous
inherent
advantages.
other
No
trans¬
In
legislative
aims
this
for
A
over-riding prosperity
the
All in
opening
for
sources
in the productive use of our natural
year
the
continuing
well-being
and
PHILIP
M.
Opportunities
v
of
.
McKENNA
will
1955
in
be
the
of
use
founds
very
by the
like
area
New
metropolitan
a
York
swiftly, with no strain, and with
can provide the mass transporta¬
necessary to prevent the traffic strangulation now
facing our major cities.
no
delays. Rails alone
tion
The New Haven Railroad
to
intends to make every effort
promote and
participate in the progressive activities
now
taking shape in the railroad industry. We expect
theft the fruits of these efforts will be fully evident in
The
mark
will
be
good
a
It should
year.
continuance of the general business upturn which
evident in the last half of 1954.
Certainly, in
a
became
terms
1955
of
the
and
use
development of natural
I think
that
substantial
1955 will
the
on
Louisiana
oil from
a
resources
period of
this
the
leasing of oil
the
Texas
area
it
shelf
off
output
of
is expected to in¬
does,
the
nation
will
double benefits through the de¬
velopment of an important rsource
reap
and the
return to the Federal Treas¬
of substantial royalty payments.
The output of minerals from many
ury
public land
areas
is also expected to
upward this year.
move
New Leas¬
ing arrangements approved by Con¬
gress which make possible multiple
the
of
use
land
will
aid
in
this
de¬
velopment.
The realistic analysis of
which
was
completed by
the nation's minerals position,
Cabinet committee last
a
cember, has already resulted in
the
status
The
of
several
problems
the
of
De¬
healthy improvement
a
important mineral commodities.
coal
industry,
which
has
not
shared in the industrial upturn of recent
years, are also
being studied by
now
a
top-level Cabinet committee
as
part of
an
has
important place in
our
economy
hoped that sound solutions
can
be found for its difficul¬
an
overall appraisal of
our
energy resources. Coal
and it is to
be
ties.
As
President Eisenhower pointed out
of
the
Union
salient part of
Our
water
message,
our
resources, our
some
our
areas
so
natural
our
lands and
raw
our
and
resist,
forests, and
our
resources
witness active
progress in
\
is
vital.
this
I
think
important
that
area,
—
initially regarded
or
forces.
man
wishes
to
hold
tool
a
That
sures.
means
without
accuracy
to
opportunity to turn out pieces of
much flexing or flinching from the.
so
•
Just
steel with
as
South
the
Charleston
continuing
electric
placements
Development
through Hheir
Columbia
Board,
Chamber
Development Board
expansion
the
of
nah
per square inch; so tungsten carbide alloys with
Young's Modulus of Elasticity of 96 million pounds per
square inch are better than steel. That is lifting us from
the
areas.
company's
River
in
Aiken
Urquhart Station
on
-
steam
fu¬
the Savan¬
County, the company's newest
and
largest steam plant, recently brought two 75,000 kilowatt
uni,ts
"on..the line,":
early in
1954.
late
one
in
1953
A third unit of 100,000
and
the/second
kilowatt/capacity
is under construction and is scheduled
to be in operation
mid-1955. Total generating
capability at that time
will reach 621,000
near
kilowatts, of which 460,000 kilowatts
The
30
pounds
con¬
a
to industrial possibili¬
of
will be in steam facilities.
million pounds per square inch is better than bronze
with
a
Young's Modulus of Elasticity of 19 million
Indus¬
Commerce,
report
generating facilities will amply provide for
ture industrial growth.
Young's Modulus of Elasticity of
a
plant
'
Carolina
Bureau, of
the
The
an
work.
Development Department has
jn organizing Industrial Committees
*•
<
combination of bath heat and mechani¬
Wherever
by-products of nuclear fuel.
ties in the state and the
respective metropolitan
impose his will upon obdurate natqre,
as he can, destructive forces, whether
a
South
struction
Carolina
'
Electric
&
1956 is estimated
of
a
ognition of that situation will proceed insofar as free¬
dom and incentive will permit innovation; -; !
In 1955, protection of our country without undue cost
Gas
Company's
con¬
budget for the three-year period 1954
through
at $62
now
million, which includes
third unit at Urquhart Station and
the iron age to the tungsten carbide age as. surely as the
iron age lifted us from the bronze age. In 1955 the rec¬
a
the
portion of the cost
possible fourth unit of 120,000 kilowatt
capacity.
EARL R.
MELLEN
-
in
addition
of
living, will depend
to
the
engineers than
all that
protection of
upon
depends
more upon
of
genius of
logical
a
For
commitments
money
the
be
to
be
made,
necessary
concept
end,
of
generally
or
succeed,
undertaken,
the gold coin
concept.
of
while
a
of uninfluenced by dema-
for
specie
long-term
standard
Therefore
the tremendously
resumption
of
that the gold
us
Over
in
is
1955
a
we
inflation,
encouraging experi¬
payments.
period
a
of
years,
our
perience has indicated that
tendency
a
trend
the
in
to
follow
ex¬
have
we
declining
a
business and, similarly, on
upward
follow
trend
some
our
volume
months after
may
relative¬
a
ly high level of prosperity has been
reached
is the best mankind has been
a measure
risks
to
includes
the maintenance
face the horrid experience of continued
without
ence
of
upon
Experience teaches
provide for
and
which
world
our
For the flowering of the inven¬
people depends
of value.
standard
useful
a
President, Weston Electrical Instrument Corporation
people's standards
the intelligence of
freedom from seizure of life and
property by gangsters.
tive
our
the machinations of politicians. But
upon
"*
also.aggressively "seeking to secure
and-other industrial
tinuing flow of inquiries relative
appointed task, a more rigid, less flexible metal is
required. Boring bars of tungsten carbide alloys deflect
only one-third as much as steel under the same pres¬
may
1955 will
resource
trial
its
goguery.
materials and energy
is
numerous
much
so
mechanical
cal
to
*
effectively? arrd ''
count
The
axle shafts and component parts of machines—
tungsten carbide alloys are coming into use wherever
wishes
been
in
instrumental
can
I
gears,
able to
are
alloy steels
has
an announce¬
in the communities-olthe
company serves with the ob¬
jective of interesting the location of industries in the
state and particularty- in their
respective communities.
These committees have been
working
Philip M. McKenna
syn-
by industry as the name "tool steel" implies, for the
heavy duty as regards heat, pressure and abrasion at the
point of a cutting tool, but later utilized for pinions,
resources
country further development of
hydro-electric
company
and
and
Station
SCEG^O'k, Industrial
deformation.
to
Air
according to
military authorities.
utilities
efforts.
coin
industrial and agricultural strength.
of
chemical
for
necessary
Corps
location in the state, of chemical
been
the range of temperatures and pres¬
sures
clearly in his
national economy.
minerals and fuels furnish the
essential to
of
will permit commercial extension of
standard
State
that
pressure
of cylinders
utilizing tungsten carbide alloy lin¬
ers and pistons of the same material
man
continental
and
As
crease.
be
progress.
As the result of
lands
Douglas McKay
times
Marine
firms interested in
Thus
As with tool steel
opinion
my
the
sistance
McKAY
Secretary of the Interior
In
In
him
car¬
three
Under
Electric & Gas Company was one
thp country receiving final consid¬
eration from the Atomic Energy Commission for a locatjoniorthe first nucle&r-power plant which was eventuaHy awarded to the Duquesrie* Light Company at Pitts.-
The
to
Elasticity
steel.
minimum.
The South Carolina
of three
bide metals having Young's Modulus
of
Beaufort
ment by
theses and
HON. DOUGLAS
a
available
the
as
buigh.\The company, continues to be actively interested
in locating such a
pla»Ljn South Carolina.
of modern tungsten
pressure
use
rated
rivers
involved, the supply will'"
substantially greater, according to engineering fore¬
polymerizations of valuable products.. Pres¬
sures of 40,000 pounds per square inch are economically
attainable because of tungsten carbide alloy's high re¬
the fiscal results of 1955.
in
and
is
on
slated for reactivation in 1955,
chemist
and
engineer
is
awakening to the increased scope of
heat
This
uses.
conditions
casts.
and
in critical parts of petroleum equip¬
ment. As 1955 gets underway, the
thousands of commuters into and out of
any
other
technical.,
physical
at
the outskirts of Colum-*
on
tional publicity through a
descriptive article in the
""Saturday Evening Post" some months ago.- Sites in *
this development will have a
potential supply of one
and one-half billions of fresh water
daily for industrial*
be
alloys will continue to permit
alert managements to make profitable operations in the
metalworking and mining fields. Oil
well drilling, oil extraction and oil
refining are already, being handled
with
tungsten carbides performing
can carry 5,000 tons of anything, anywhere,
time, with a single locomotive and a five man
crejw. No other trasport agency can move hundreds of
port agency
pany has acquired a 1,100-acre tract
construction of a large new syn4
The Atlantic Coast Line Railroad is
of
the
Bushy Park
project
in
recently received approval from City Coun¬
cil and construction of dykes and canal is
expected to
begin early in 1955. This project received notable na¬
stiff
on
cer¬
Com-:
development
normal
hard,
seems
Charleston
and
Design and
wear-resisting carbide
area
The American Cyanamid
plant.
huge tract of land
a
The
,
President, Kennametal Inc.
frontiers.
*
development and the Seaboard Airline
a similar project in connection
with other private interests at a site
adjacent to the city;
re¬
progress
this
"
ap-
the-industrial
Railroad has announced
people»
our
in
of
bia for industrial
all, therefore, I rfeel confident that 1955 will be
banner
tain.
thetic fibre
nation.
a
McMeekin
/
the
of
continuation
Columbia for the
near
session.
being supported have all been carefully analyzed to as¬
their importance not only to the economy of a par¬
to
capital
million and
some
$6
employment totaling
.'>.*■
expansion
C.
S.
sure
but
rep-'
area
total
of
proximately 2,506.
addition, the Administration will rehommend sub¬
area,
estimated
an
additional
stantial appropriations to underwrite new starts on sev¬
eral other important reclamation projects.4 The projects
ticular
in the company's service
..
development of the Upper
This is critically needed to con¬
istration's
with all the facts, will be amenable to the
regulations to point more in keeping with
today's conditions.
While the rails would be helped considerably by a
fairer set of rules under which to operate, they have
of
.
investment
and
serve
?
HP ^resented
the
is
presented
has been known
|
During the first nine months of
1954, new and expanded' industries
complex for local interests.
too
or
revision
.
1
|I
the President,,
properly utilize precious water which is the
key to the economic future of a vast five state area.
Approval of this project ranks high among the Admin¬
much to do to set their
Company
them.
Federal
The
has made clear, however, that the Federal Government
will not step aside from its responsibility to undertake
-
for years
Gas
&
of
bear all or part of the
Government will not
will
sponsors
costs.
be called upon to carry the entire burden.
In supporting the partnership program,
has stemmed from the
woes
Local
development
two-thirds.
than
less
The number
.
competitive game of transportation during the past
the
McMEEKIN
industrial customers being served
by
Roosevelt, President Eisenhower has empha- '
the South Carolina Electric & Gas
sized the importance of participation by private citizens •
Company as of Sept.
30, 1954, totaled .l,270^as-compared with 1,153 on the
and state and local- governments with the Federal Gov*vame date
in 1953, an increase of 117 in the 12-month
ernment in the development of natural resources.
period.
While most of these new
Already this policy has resulted in renewed activity
industries were
comparatively small
by local and private organizations in the development of
operations, the new Bird '& Sons,
natural resources.
■
Incorporated roofing plant at'
Already Congress has approved the partnership devel¬
Charleston, representing • an invest¬
opment of undertakings such as Priest Rapids in Wash¬
ment of some $3
million, was among
ington, Coosa River in Alabama, and Markham Ferry in
Theodore
be shipped
Automobiles themselves will
C.
President, South Carolina Electric
.
Adhering to the fundamental conservation-policies of
housing needs.
Machine tools made in New England must be carried to
Detroit
to
assist
in
the
production of automobiles.
be
S.
*
.
must
Thursday, January 26, 1955
..
1954
with,
the
in
was
six
year
however,
present
movement
in
other industries.
a
of declining trend
every
time
which
of
will
indication
an
be
at
upward
reflected
improved orders during the first
months
of
1955
and
continuing throughout the
probably
Earl
R.
Mellen
year.
Resumptions
repudiations generally
fail.
Continued
on
page
88
4
Number 5396
Volume 181
Continued
from
.•
.
The Commercial and Financial Chronicle
.
in
85
page
(343)
this
expanded
program.
Pri¬
vate funds for FHA-insured loans
for
and
Attacking thefarm Price Squeeze
television
the
and
sets
soil
and
development
*,ownership . are
now
farm
tion
I
year ago.
have
omy.
We
•
•
if
Select,
will,
nation
face of this globe where
food
fiber
and
needs- and
domestic
meet
of
also
find
We
prepared
now
of
the
necessities. I
sought to
in
emphasize
will
be
ruined
and
government somehow makes
farming so attractive that no rural
will
lad
to the
city. As
have
never
such
nation,
a
philosophy.
a
we
Under it, we
going,
either.
shall
what the future
say
limitations may be upon
tional
development? In
our
na¬
agricul¬
ture, what new crops will tomor¬
bring?
row
old
What
In
crops?
new
for
uses
world
a
just
now
entering the Atomic Age, some of
the
most
exciting
laboratories
known to
ever
on
man
farms.
our
BacK
iuz4 American farmers
in
harvested
bushels
just under 5 million
soybeans. In 1954 our
of
soybean production
was
record-
a
breaking 343 million bushels, with
value
market
a
lion.
Thus
of
the
decades
three
in
nearly $1
we
development of
short
have
new
a
major industry.
We
may
be
new
possible to
laying
hens.
Sometime
the
top producing cow
our
experimental farms will
haps
cock
one
on
of
per¬
disapproving eye at
say,
"Look, this
has gone far enough—you've got
the last pint."
a
scientist
a
future
But
fear
if
and
shortages of food
no
we
of
output
somewhere
levels of
our
Outlook
up
productive
efficient units.
more
know,
we
fiber
or
farms
our
the
near
need
bringing the
in
succeed
average
This,
generations
be done.
can
Good
is generally good—for
'and the Nation
as
a
agriculture
whole.
lems
of
will
the
at
tal
we
that
consuming
are
are
before
ever
food
running
^This
trend
tinue
of
it
to the
diet
Nor
I
livestock
population
As
will
for
be
feed and forage to provide
.more
the
tomorrow
I
products which
is
our
years
ing
r
expand
us
kets.
or
Development Act
To date
in
are
ating
involving
we
the
sales
our
for
$453
is
foreign
help¬
mar¬
negoti-
of
foreign
again
of
million
,
by
Commodity
tion.
Wheat
These
of
Corpora¬
cotton
are
the
principal items involved, although
tobacco,
rice,
barley
and
other
commodities will also be included.
There is another comparatively
recent
development
tremendous
'■ ture.
promise
that
for
holds
agricul-
Thanks to President Eisen¬
a
pro¬
Union Trust Building, members of
standard of
unmatchedr in
any,
the
York
New
Stock
other
and
Pittsburgh
Exchanges.
suf¬
drought
southern
ifeasons
are
Great
Have you ever
am
water
our
problem is welded to problems of
land and people. Land and water
inseparable
are
ries
planning
car¬
away
in
of
much
so
shortages
floods
or
cities and industries.
has its
beginning
the
in
and
just
one
affecting
The problem
What is there about orange juice to make you think of a large
the farms
up on
forests
soil.
our
The water problem is not
of
in terms of
and
It is the water which
use.
CROWN
thought of
why I
of
small
our
industrial organization like CROWN? Well, for
one
watersheds.
In
the
ture
Department of Agricul¬
we
determined
are
farmers
to
out
carry
fective program of
development and
on
that's where CROWN
and
water
watersheds
in
also
or
the
re¬
ested in the efficient
More than
the
lifeblood
of
for
irrigated
and
the
irrigation
at
growing
time
some
past two
at
decade ago this
Company established
a can manu¬
during
have
years.
necessary
production facilities of this plant threefold in the
CROWN
now
Bartow, Florida to keep
has another plant under construction
pace
with the
ever
increasing demand
for Crown Cans.
CROWN'S service to the Florida citrus industry is but one
season.
cooperatives
to increase the
West,
dryland
supplementary
use
a
particularly in the frozen fruit concentrates, has made it
&
And in the East, many
could
closures, containers and
greatest citrus producing area. The rapid growth of this industry,
inter¬
of water.
use
is
farming.
picture.
facturing plant at Orlando, Florida, right in the heart of the world's
small
are
tre¬
and
Cans, is used extensively by producers of citrus fruit juices and
subwatersheds.
Everywhere farmers
a
...
frozen citrus fruit concentrates.
and
farms
thing,
days
machinery, all related to packaging. One of its products, Crown
This nat¬
individual
and
the fields of
soil and water
wise utilization
soil
of
on
into the
covers
ef¬
urally includes protection and de¬
velopment
comes
CROWN'S business
assist
to
more
a
nation-wide basis.
a
mendous amount of orange juice goes into cans these
example of how this Company,
a
as a
vital stake in this whole problem
contributes to the better
which is tied
supplier to
many
industries,
used in the households of the nation.
ture
welfare
rently
there
new
closely to the fu¬
so
of agriculture.
is
broad
interest
Act
thorizes direct
or
which
tion,
practices
drainage,
and
CROWN CORK & SEAL COMPANY, INC.
au¬
Baltimore 3,
insured loans in
all States for soil and water
servation
vast number of products
a
in
provision of the amended
Facilities
packaging of
Cur¬
Maryland
con¬
for irriga¬
—
improve¬
pasture
reforestation
on
farms.
We may now insure such loans up
to
a
*
Farmers
operative
may
who participate in co¬
water
now
through
borrow
the
Products
developments
project.
for
The
$100,000.
agencies
are
to
up
Farmers
ministration
was
rtf*
total of $25 million per year.
•%
'
cooperative^ living
basis for
and
the
of
firmly convinced that
ment
worth
Credit
and
and: progress through
the
vided
part-]
Moore, Leonard & Lynch,
wrought
continued
and?t
Plains.
currency
surplus farm commodities owned
re¬
conservation
in
limited
general
development and
fresh in my
new
have concluded
process
education,
have
courage
Wells
a
.Jarmers and ranch¬
Southeast, parts of the
Midwest
Water
earlier, the
*
Trade
v
search,
and
G.
becomes
brought
in the
ers
the
demanding.
indicated
velopment, market expansion,
r
ner
genuity
Albert
partner
new
anxieties
unaware
have
Farmer
'
20th,
and
American in¬
I did, and be
as
and
am
con¬
emphasizes that the
climate which with
Still
four
the
to
th;s nation with vast
resources—with soils
fering and anguish which the last
items.
likely
PITTSBURGH, Pa.—As of Jan.
debris.
tastes
more
protein
seems
and
needs
and
more
higher-priced
natural
Lynch Partner
A kind Providence
havoc with the canal systems and
buried whole farms under sterile
In to¬
our
blessed
much
so
highest
more
and
has
the disastrous floods
are
time
farmers
than
Moore, Leonard &
playing the major role. Trade de¬
Busi-
peacetime level in history.
of
most
agriculture.
accelerate
both
is
ture is bright.
man¬
surrounding the prob¬
water
memory
It
activity
ness
are
posterity and, indeed, for all
The'future of American agricul¬
national soil;
We have
the
management.
ranches
1955
for
agriculture.
farmers
of
a
$250,000
Home
single
former
Ad¬
joint
CLOSURES
I
BEVERAGE
by CROWN:
MACHINERY
Vr
•
.
MILK
CAPPING
BOTTLE
BOTTLE
CAPS
MACHINES
.
.
CAPS
BEVERAGE
.
FILLERS
MILK
PACKER'S
CANS
METAL
♦
.
GENERAL
BOTTLING
CAPS
AND
LINE CANS
r.
% ^**»s r**
i* "iw
BEER
CANS
•
"SPRA
•
TAINERS"
.
"FREEZ
-
TAINERS"
.
MERITSEAL
CAPS
-
lbnitation
Private
lending
matching the interest
of farmers and groups of
farmers
of
benefit of
new
farm,
to
heartaches
sources
For the year ahead. The outlook
free
them,
gains
for the
resources
on
Idaho
ern
in
the
additional egg from
one
top
our
crop
approaching
day when it won't be
that
of
the
seen
major
in this country and with it a
coax
-
bil¬
space
of
responsible for
are
great
us
opportunities
problems that require
community action. No one can grow up on a south¬
to work
be right
may
the
many
the
conservation
kind;
though
even
the
guide
and
the past two dec¬
over
offers
oblivious
Who
-
In
water
with
:
that has gained
It
ades.
under
wouldn't get where we are
our'
This
momentum
would
far
this
come
balance
and
prosperous
they
deserve,
in
God
use
these
Consequently they
always receive the atten¬
they
My
wise
sel¬
are
implement the soil and water
program
again venture forth
ever
basis.
shed
un¬
less
•
•
not
land.
day-in-
They
authorization for approaching soil and water problems on a water-;
,
America
that
into
and water program.
little
sympathy
for
the
anguished cries of those who insits
have
.
help
to
a
bring the
now
element in
soil
many
as
may
element
a
luxury
most
.even
regard
we
any
will
you
and
goods
things
to
barren
country
^
are
technically and, to
tent, financially,, in
limited ex¬
on
the
carrying out
one-half or even one-fourth of the projects which the individual can¬
total
labor
force
is
producing not complete on. his own. r"
;^
you
continuing,
dom dramatic.
do
a
better
.
operations.
that of
variety
remarks
' these
today
several,
goods which add to our
living standards. The re¬ Congress, the Department of though by no means all, of the
markable efficiency of agriculture Agriculture for the first time has
programs
which are being di¬
has made possible this important -the tools to deal effectively with,
rected .toward assuring a stable,
contribution to our entire econ¬ the problems of small watersheds.
other
of
are
and-out
available in an' amount four times
hower's personal and official con¬
cern
and the action of the 83rd
a
efforts
water
87
Plants at; Baltimore, Philadelphia, St. Louis, Detroit, Chicago, Orlando, San Francisco, Los
Angeles
m
The Commercial and Financial Chronicle
(344)
Continued
from
of
President, Fidelity & Deposit Company
Maryland, Baltimore, Md.
In
1955 forecast for our principal lines—
fidelity and surety—several factors must be considered.
As to fidelity, 1955 is what we term an "off year" in
the three year premium cycle, so it would seem logical
to
predict decreased premium vol¬
making
a
that classification.
for
ume
..
the
On
other hand, top
tically
and more conscious of
for fidelity bonds (insur¬
more
need
the
management in prac¬
fields of business is be¬
all
coming
and
recognize
agents
fore the
coverage
the
employee
against
ance
as
dishonesty)
never be¬
necessity of providing such
for their clients.
Indeed
guidance in insurance matters
is in a tough spot when the client sustains a dishonesty loss and there /
insurance
no
Our
suranee.
)3.
h.
Mercer
la
to the efforts expended.
dishonesty losses are
on
this
and
fidelity bonds will be sold
Chairman
of the
last
but there is
The
steadily
will
this competitive
meet
problem
lines, including fidelity and surety—a
lucrative field from the agents' point of view.
of other
duction
Forecasts
to
be
can
dangerous but all
with
1955
in all I look for¬
it
CLIFFORD
MICHEL
W.
nual
Gold Mining industry
Canadian
1954 on
a
solemn note.
has finished
Production for that
the
year
is
expected to aggregate only little more than the $140,of precious metal produced in 1953, a year in
National
Product—the
foresee
an
average
an¬
of $367
rate
1954
year
average of $358
billion,
nearly $365 billion in 1953. The
present quarterly record of $369.9
billion
in
set
was
the
1953
second
quarter, and this :will be surpassed
by the 1955 third quarter.
Activity
in
the
electrical-elec¬
tronics
industry is extremely strong,
and 1955 will see the industry take
a
major step toward doubling its
G.
Don
Mitchell
volume
There
electronics
billion
business
level
is
alone
within
the
over
five
9
reach
additional
$184,000,000
was
than
1954
production; in that
the value* of base metals
year,
in
years,
The
anticipated,
now
future
in
commercial
duced
in
Canada
only
was
be
come
very
along
well
may.
industrial
the conservative side.
on
duction.
$136,000,000.
To
it
sum
mining neighbors just
We
look
for
duction of electrical and electronic equipment will be a
concurrent development, each climbing with the other.
The
the
as
only
below $34
'.selling price today,
which is the approximate
the Canadian dollar stands at a
per
as
oz.,
3% premium.
Prospects for
higher price of gold in terms of U. S.
dollars are no brighter than a year ago. With industrial
recovery brought about by an "easy money" policy in
the U. S., there is little reason to believe that the author¬
a
ities would consider
necessary
the field of
ing the
sales
its restrictions
on
the form in which
of
the
London
continent for all
restricted form
a
stored, but
this
source
no
of
free
immediate benefits
for
the
Canadian
gold market
were
gold
was
It
re¬
does,
The Canadian
Government to date has recognized the
squeeze
on
the gold producer's
operating
profit margins by extending a subsidy predicated
upon
each individual mine's cost of
producing an ounce of
gold. This assistance has gone a long
way to keeping
many mines in Canada open which would
otherwise have
been closed
and
1955
the cost of their production
exceeded the
celling price. To date there has been no extension of
this
f°r the year 1955 by
color
estimates
All in
may
as
Order-in-Council
new
Government,
in
as
in
instituting
is
white
still
a
sets
as
heretofore,
a
prior years.
The
it
may not
Canadian
subsidy to the industry,
was
income
net
shares
common
the
$1.24
,.
shares
System in
expectation
our
share in
per
1955
the
on
outstanding
share that
a
average
expect this
(10,019,707) will
expect to earn in 1954
we
outstanding
(9,298,592)
in
that
year.
Continued improvement in our System earnings rests,
in the long run, on the continued
healthy
area
we
ability
New
born
prophets
skill
We
serve.
of
fidence
growth of the
in the
complete
confidence
England to grow and prosper,
long experience in seeing all
of
of
have
doom
confounded
by
the
a
con¬
the
the
of
that
fact
New
of
England workmen, the diversity of New
industry, and the ingenuity and courage of
England business leadership, have steadily kept New
England sound, strong and growing.
England
New
ADMIRAL
BEN
MOREELL
Chairman of the Board, Jones & Laughlin
We at Jones &
line"
Laughlin have "laid
evidence
as
steel
of
industry and
faith
our
our
1955, but in future
in
the
Steel Corp,
the
money on
stability
generally,
economy
years
our
not
the
of
only in
well.
as
We recently announced our inten¬
tion to spend $51
plant
million in 1955
improvements
very
and
on
fa¬
new
a
System
sensitive
to
so
such
many
of course, have to
any
quick
nomic
is
an
System
as
we
ahead
order
dicated demands for
our
forecasts
are
to
our
an
basis
of these studies,
increase of about 10%
sales
to
accompanying increase of
mercial
sales
and
While there
might
some
industrial
total
I
believe
at
90%
can
predictions
to
as
Ben Moree11
activity of the steel industry,
that
its
of
avoid
war
in
1955
industry might well operate
capacity of 124,330,410 tons if we
rated
or
a
the
"police action" and enjoy industrial
at home.
turbance in
on
some
other
industry inevitably has
an
effect
us.
Our
resolve
to
ahead
go
ments at this time is based
with
on
capital
our
our
improve¬
estimate of the future
needs of this
country and of the world markets for steel
products made of steel.
1954,
a
rate
annual
the
nation
built
record number.
will be
about
In
built.
55,000
school
class¬
1955, probably 65.000
The
United
States
new
new
Office
of
classrooms
September, 1959. This calls for double
building in this field, and would cost from
of
program
for
least $5 billion for
of $5
billion,
a
year.
Irwin
L.
Moore
In
customers
in
with
revenue.
should
show
an
ail
new
highways and
10 years.
streets
of
an
at
To this "normal" program
special committee appointed bv Prpsident
adding another $50 billion to
anticipated road needs through 1974.
Eisenhower
in
7%
the
Estimates from state highway
departments call for
we
sales
dollars
uncertainties that
are
invalidate
future
meet
residential
billion
$4.5 billion to $5 billion
groups, and similar factors.
the
half
a
,
expansions.
the
in¬
close
on
under
Education reports that a total of 720,000
services. So
based
degree
greater
will be needed by
scrutiny of industrial activity in¬
dices, population trends, use of gas
and electricity forecasts by customer
On
over
classrooms
eco¬
meet
a
spent by J&L since the end of World
War II on capital improvements and
In
In
in
to
varying market conditions.
The 1955 expediture will bring to
rooms,
essential
years,
facilities
and
fact, forecasting
part of our business
must plan many months, even
pattern.
the
any important segment
industry, the steel industry should be able to achieve
large measure of stability in 1955.
Our industry is
basic to practicaly all other industries.
A serious dis¬
forces—we do,
ourselves to
the
di¬
of
gear
adjustments in
to
a
so
—
designed
our
Barring serious disruptions to
MOORE
ours
as
is
program
production of finished
products, so that we may utilize
capacity of our steel-making
steel
peace
making predictions about the coming
year's business there is often a ring of synthetic opti¬
mism, tinged more with hope than factual analysis. In
this instance, I shall try to hold to the facts that are the
basis of our optimism in New Eng¬
land Electric System for 1955.
In
This
in
in
kilowatthour
form
and
wide variance
color
President, New England Electric
Sometimes
ever* that Cost Aid will be extended although
exact
that
records.
IRWIN L.
expect
the
black
sets. The
indicates
all, the outlook is extremely favorable, and 1955
well set
jjnd the item will be debated in
Parliament in the very
near future.
It is the general consensus
of opinion, how¬
take
million
6.4
are
100,000 to 300,000 color
big question, with many design and production problems
yet to be solved, before color receivers can be sold at
prices low enough to bring mass consumer buying.
obtainable from
producer.
however, represent a small step forward in the direction
of: convertibility, which in the
long run should be advan¬
tageous for gold.
price-cost
estimates for
already active economy. In
price, the International Monetary Fund, dur¬
year, eased
total
an
gold could be made but the premium markets
practical purposes disappeared
with the industrial recovery of Western
Europe and the
more active
employment of formerly hoarded capital. In
on
1954
increase in the price of gold as
an
to stimulate
television
industry is again back in high gear,
factory production expected to reach
7.5 million sets and sales to the public more than 7.2
million, both of which will be new records. Current
decline to
Not
area
With normal water conditions it is
versify
with
producer.
Sys¬
our
higher net income for the
a
consolidated
decade, I also mean that the electrical-electronics manu¬
facturing industry will also double its output. The
doubling in consumption of electric power and the pro¬
Clifford W. Michel
1955
are
cilities.
they have worked against the
is ounce production of gold
lower, but from a peak price of $38.50 per oz., which was
received when the Canadian dollar was at a 10% dis¬
count against the U. S. dollar, there has been a steady
gold
industry—must
the
optimistic about
because the industries in this
we
up,
business mainly
showing definite improvement and we
improvement to continue through the year.
and
or
Com¬
atomic
an
are
every
years,
Electric
was
Discussions
of
tem
nearly 400 billion kilowatt hours.
equipment and devices demanding that addi¬
generating capacity. So when I predict that the
consumption of electric power will double in the next
will prob¬
Both units
In 1954, it
ably exceed $475,000,000.
is
10
the Yankee Atomic
1955
a
recommends
we
will
build
about
buildings to accommodate 40,000
1,400.000
new
new
homes;
hospital beds; and
Com¬
kilo-
,
are
in progress with the Atomic
looking toward the early construc¬
plant in New England, designed to
give us first-hand experience in the possibilities of the
use of atomic plants in our future
expansion.
tion
tional
of production and price received per
unit have worked in favor of our
in
Energy Commission
present
applications,
especially in computers for automatic production and
data processing, is so limitless that it is really impossible
to
forecast
even
a
reasonably accurate guesstimate.
Thirteen billion dollars by 1960 in many ways seems to
have
about
have
now
formed by the System and other NewEngland utilities for the purpose of keeping in the
development forefront of atomic energy for power pro¬
on
and they
and
YAEC
pany.
exceed the
industry of today is only a fragment
of what it will be in 10 or 15 years. By 1.960 the industry
may have an annual volume of even more than $13 bil¬
the consumer—whether it be the home
pro¬
we
In
the formation of
was
the
electronics
than
<
to
contrast
possibility that this will double in the
may well reach a trillion kilowatt
hours by 1970. Here again is a case of which comes first,
the hen or the egg? Before the consumption of electric
power can double, there must be the equipment to gen¬
erate it and carry it to the consumer. By the same token,
same
Thus
a
approxi¬
1955, we expect to spend about
$50,000,000 in expansion of plant to keep pace with the
steady growth in the demand for our services in Nevy
England's expanding economy.
Another development of interest during the past year
1955.
approximately $8 billion level in 1954.
next
13% greater
or some
quarter of
a
$43,000,000.
that
There
was
looking for
Total expenditures for new plant in 1954 will
mate
the
a
of
lack
in itself disapppointing, the
inability of the industry to keep
pace with the growing economy of
the country in which it is domiciled,
in doubly discouraging to our trade.
As an example, gold production in
1939, before the outbreak of war,
ery
also
are
half-way mark on the 150,000-kilowatt Samuel C.
hydro-electric station.
It is expected that the
first unit of this plant will be in operation in the
spring
$13
current annual rate is
While the
We
million kilowatts of modern,
high-efficiency steam equipment.
the
down
by strikes.
vigorous recov¬
kilowatts.
33,000
Rhode Island
that
least
at
had
closed
6%.
our long-range expansion program,
progressing on schedule. The new topper unit
has been completed in Providence, adding some 77,000
kilowatts to our capacity as well as modernizing an
10 years.
or
indication
every
will
next
which operations at many properties
been
and
is
During the past eight years, the kilowatt-hour con¬
sumption of electricity has more than doubled and the
000,000
5
In connection with
work
even
billion during the
1955 first quarter, in contrast to the
The
President, Dome Mines Limited
total
a
fuels for house heating.
surpass
may
nation's goods and serv¬
the
economists
faster
year
only -will
not
lion, if commercial and industrial electronics
optimism.
On
On the upper Connecticut River, construction reached
ices—already shows signs of exceed¬
ing the previous records. Sylvania's
largest premium volume is pro¬
they have others in the past and in some instances
will direct more of their time and energy to the pro¬
The
Gross
of
sum
ever
aj
ward
1955
a
climbing
by contract bonds.
who
industrial.
a
slightly under
sales basis, we
Moore
strong possibility
exceed the previous record set in 1953.
year
activity in
men
and
further, increase in our gas revenue as promotional
rates now'in effect make this fuel competitive with other
_
and
business
in
in each category with
revenue
a
Board, Sylvania Electric Products Inc.
the increase
be con¬
If the current unprecedented
building and engineering construction con¬
tinues'through the coming year, as most experts agree
that it will, our surety volume for 1955 should at least
equal the high level of 1954.
As to increased production and income for our agents,
the average agent is today facing the keenest kind of
competition from direct writers, particularly in the fire
and automobile
fields.
Agents are alert, resourceful
duced
increase
somewhere between
MITCHELL
activity during
before.
In the surety field our
4%
about 7%
of
commercial
of 1956.
Economic
can
in 1955 than
G.
DON
in- '
enough
in
Thursday, January 20, 1953
.
the
a
"l
more
low in relation
too
increase
.
expect the kilowatthour improvement to be somewhere
around 7%
while the dollar revenue increase will be
Parliament, I believe the profits will be
level approximating that of 1954 but still
a
glance through at any daily newspaper.
feel that through our American agency sys¬
by
brief,
tem
stabilized at
records show that
own
country-wide
firmed
not
or
Canadian
the
increase
watthour
6%
at a discount, and gold was vital to its foreign exchange
positiori. As such times could return, should the balance
of trade and current capital movement reverse its re¬
cent course, it would appear in the interest of Canadian
welfare as a whole to maintain this industry.
As the miner of gold cannot influence the price of the
article he produces, he can only hope that the govern¬
ment will continue to aid him with, his costs as he, him¬
self, struggles to devise new methods to reduce his own
costs and make more efficient his operating practices.
This, I believe, the industry will do in the year ahead,
and as I anticipate that Cost Aid will be extended by
agent to whom his client looks
for
is
by charitable motives. There have been
times in the past when the Canadian dollar was
prompted
many
MERCER
H.
B.
not
86
page
.
Continued
on
page
90
■
Volume 181
Number 5396
.
The Commercial and Financial Chronicle
.
(345) ' 89
then
even
Complete Puerto Rico Water Resources Authority Bond Financing
made
the
being
progress
Last year the road made
ticularly
sorry
For
11
the
vember
of
a
par¬
there
contrasted
$2,785,000
the
like
in
dustry
was
with
on
net
a
profit
similar
a
of
basis
for
1953 period.
Moreover,
November, when the in¬
whole, and most roads
as a
income
declined
November
1953.
tion
which
ratio,
of
Daniel
deficit
net
a
individually, had turned the cor¬
ner, North Western's net opera¬
ting
Marine Trust Co.
earnings showing.
through No¬
months
$4,402,000 before sinking funds
even
Whitlock V.-P. of
painfully slow.
was
60%
from
1952
who
Manager
of
the municipal
the
department
New
the
of
York
been
of
Trust
the
New
York,
Assistant
elected
President
City
securities
Marine
Company of Western
has
has
Assistant
as
office of
Vice.-
bank,
according
to
an
H.
Diefendorf, President.
announcement
Prior
The
transporta¬
traditionally is
P.j Whitlock,
since
served
his
to
the bank,
by
Charles
association
Mr. Whitlock
with
was
con¬
the
highest in the indus-- nected with Shields & Co. fromtry, continued to mount. For the 1939 to 1942 and after,
discharge
11 months it came to
46.4%, up from the U. S. Air Force in 1945
more than two
points from a year
earlier.
The company is now in was with the bond department of
one
its
seasonally
if
even
provement
be
iron
period.
to
be
and
Lazard Freres & Co. of New York
im¬
year-earlier
in
probably
shipping
ore
late
Thus,
some
City.
(Special
Barton
in
have
,
to The
Financial
DENVER, Colo.
the
opens
>
FIF Management;
2 With
coming
until
season
spring.
:
c
,
re¬
be taken for granted
net monthly deficits
reported
months,
the
is
over
sults it may
that sizable
will
low
there
Robert
and
been
added
Chronicle)
Herbert -M.
—
E.
to
Hollowell
the
staff
Of
FIF Management Corporation, 444
(Special
new
ward
with
Formal
completion of the recent marketing of
$12,500,000 of Puerto Rico Water Resources Author¬
F.
ity
Bank;
electric
revenue
bonds
Jan.
occurred
12
Shown
when
above
Schroeter,
Louis
Victor
City
Caribbean
standing left to right
Assistant
Naetzker,
Cashier,
The
Financial
Orleans,
Mildred
pagne,
to
G.
La.
Tschirn
are
Cham-
Vice-President,
officials of the Puerto Rico Water Resources Author¬
District,
ity accepted from representatives of the investment
Investment
ity;
Building.
.
Co.,
to the
Financial
DENVER, Colo.
Daane is
tual
—
,
Chronicle)
Kenneth
E.
with Founders Mu~
now
Depositor Corporation,
First
National Bank Building.
-
Secretary of Puerto Rico Water Resources Author¬
banking
Delta
(special
Ed-
and
associated
are:
National
,
With Founders Mutual
Mrs.
—
Carter, L. J.
Tschirn
.
Chronicle)
Wilson W. Mills
R.
Street.
Sherman
Four With Tschirn In v.
which underwrote the issue,
group
representing
proceeds from
the
sale
of
check
a
Ira Haupt & Co. and Allen and Company were joint
of the banking
:managers
•bonds and
group
and
Seated
bonds.
the
National
James
City
S. Abrams
left to right
Director
of
the
Fernando
Bank;
Company.
&
Carl A. Bockk, Executive
are:
Puerto
Allen
of
Torrent,
Rico
Water
Resources
Trade
Au¬
thority and William G. Carrington, Jr., of Ira Haupt
which purchased the
&
reoffered them to the public.
Co.
will
come
*★
★
'
•
to
only $2.03.
=Los Angeles1
It is felt
by most analysts that this record
hardly
warrants any enthisiasm
company's stocks even at
prices and even
though considerable year-to-year
improvement in earnings seems
for
the
recent
deflated
almost
Chicago and Northwestern
The
,
only,
ualty
first, but perhaps not the
income bond interest cas¬
stemming from .. the ' 1954
business
recession
railroad
earnings
and decline in
has
been
re¬
ported. Chicago & North Western,
which had
earlier announced that
dividends
no
year on
would
either the
be
paid
this
common or pre-
fessed
no
stocks,' recently stated that
interest would be paid on the
income
4V2S.
mulates
to
a
This
(131/2%)
years
continues
on
interest
maximum
of
to
the
that
interest
would
be
not
paid.
the
end
has
been
&
the
hostilities
of
record
generally disappointing.
Also, for the most part the trend
has
been
a
deteriorating
one.
might
well be paid off in the spring of
1956 along with the current inter¬
year
(1950)
in which the company was
able to
est then due.
earn
now
arrears
The preferred divi¬
dend, however, is cumulative only
to
the
earned
was
Now
on
extent
with
the
on
earned
to
there
be made
is
year
up
surprise
in
and
of
common
obviously
there
six
only
pay
and
one
its
full
that
the period
($1.50)
stock.
be
will
1949-1954
years
preferred
was
in
was
the
paid
any
the
on
Counting this
three
only
which
year
of
seven in which no preferred divi¬
dend will have been paid and the
average distribution for the period
the prospect of a fairly long divi¬
considerable
was
dividend
dend drought for the stocks. There
was
the
dividend
nothing
the stock last year.
arrears
bonds
and
During
there
fi-
are
years
out
1955.
number
a
Stock
of
North Western.
It has
business,
senger
and
larly burdened with
able
of
a
large
"SERVING THE
pas¬
service.
particu¬
expansive
THE NATION ..."
Consider¬
the
mileage has a low
density of freight traffic and the
average haul on freight is among
the shortest
OFFERS:
for any of the major
railroads in the country. This lat¬
ter consideration has been a seriout
drain
of the
on
operations
*
because
heavy, and rapidly mount¬
ADDITIONAL
THE
AFTER
ing, terminal costs involved.
Abandonments, curtailment of pas¬
senger
service, and attempts to
stress the development of longer
A.
L.
TRADING
5:30
P.M.
IS
(EST)
TIME
CLOSE.
Y.
N.
EXCHANGE
THE
OPEN
4:30
UNTIL
P.M.
aggressively by the present
agement.
Prior
to
the
readjustment that got under
in the fall of
1953
*
man¬
there had
MARKET
A
FOR
PROMINENT
NATIONALLY-KNOWN
business
way
AND
LEADING
STOCKS,
WEST
COAST
been
SECURITIES.
signs
some
ment efforts
tion
were
that
these
manage¬
along with dieseliza-
bearing
some
fruit
*
but
MEMBERSHIP
OUR 87TH YEAR
PREFERENTIAL
DIRECTORY:
TO
COMMISSION
APPROVED
Harker & Co.
Akin-Lambert
H. Hentz & Co.
Company
Co., Inc.
,
Hill Richards & Co.
Bateman/ Eichler & Co.
Bingham, Waiter & Hurry, Inc.
J. A. Hogle & Co.
Thomas C. Bowles
Arthur B.
Hogan Inc.
Helton, Hull & Co.
E. S. Hope & Co.
(San Diego)
Crowell, Weedon & Co.
Hopkins, Harbach & Company
Dempsey-Tegeler & Co.
Eastman, Dillon & Co.
E. F. Hutton &
Calin-Seley & Co.
.
(New York)
Company
Jones, Cosgrove & Miller
(Pasadena)
.
Fairman & Co.
W'lliam H. Jones & Co.
Fewel & Co.
"HEast tNewYork \SaV|^i g s E^ank
Ka'ser & Co.
First California
(San Francisco)
Company
Gross, Rogers, Barbour,
Smith & Co.
Wesley Hall & Co.
THREE OFFICES--ALL IN
MEMBER
J
U'
FEDERAL DEPOSIT
BROOKLYN*
INSURANCE CORPORATION
(San Diego)
Harbison & Henderson
DEALERS.
Revel Miller & Co.
Quincy Cass Associates
$465,000,000
&
Mitchum, Jones & Templeton
Morgan & Co.
(Beverly Hills)
J. Barth & Co.
ASSETS EXCEED
BROKERS
*
Adams-Fast now
Carl L.Barnes
I
(CST)
haul traffic have all been pursued
EXTENDED
IN
GREAT
SOUTHWEST AND
is
an
Exchange
reasons
for the consistently disappointing
results
reported
by Chicago
&
commutation
North Western has
long
traditionally been
a
high
cost operation and a strictly mar¬
ginal property. The high cost fac¬
tor was temporarily
obscured
during the war years but since
Chicago
three
and
if business
upgrade as is
announcement
ticularly
the
the
neither
the stocks reacted par¬
nor
accu¬
the
anticipated, the
bonds
that
circles
nancial
in
certain
There
The Los Angeles
Daniel Reeves & Co.
(Beverly Hills)
Shearson, Hammill & Co.
William R. Staats & Co.
Stewart, Eubanks, Myerson
& York
Sutro & Co.
Wagenseller & Durst, Inc.
M. S. Walker & Co.
Kerr & Bell
tester; Ryons & Co.
Dofflemyre & Co.
Merrill Lynch
Pledger & Company, Inc.
(San Francisco)
Robert E. Keane
Marache.
Neary, Purcell & Co.
Noble, Tulk & Co.
Paine, Webber, Jackson
& Curtis
Pierce,
Fenner & Beane
(Long Beach)
Walston & Co.
Dean Witter & Co.
The Commercial and Financial Chronicle
(346)
90
Continued from page
favor
dustries
and gas pipelines.
^
all this demand for construction?
It comes
our fast-increasing
population, from an expand¬
13,000 miles of oil
w
of
Why
from
the
for garages,
When
6f
wood
a
to attain greater utiliza¬
during the past year with
a
new
to
new
This'is the first of
product extracted from here¬
tofore unused bark. It is finding promising recognition
as a chemical additive to muds used in oil well drilling.
we
cjesoribe
adjust
a
itself
to
of
country's
our
And
-
' "
that
kets
cate
eral
development^-^'% '
"
-r-
(T) The
in
Tubular Products Specialties Department
at the Aliquippa, Pa., Works.
new
with
the Seamless Tube Mill
"provides"
Plant
at
new
Research Center at Pittsburgh.
continuous line for producing galvanized
sheets at Pittsburgh.
(3) Additional equipment "for producing new.yjoist
(1)
A new
(2)
14-inch Bar Mill at
sections at the
'•
area
the
economy
Aliquippa^
;
as
look
:
permit
insatiable."
the needs
that
for
It is
all
stated,
has
needs
public
as
a
whole
secure
The
can,
practical purposes, b.O considered
insatiable.
In order to
move
toward meeting those needs we
will have to increase the productivity of our people.
History has shown that we.can do this best by equipping
our
workers with the finest in tools and, machinery of
encing
must
able
Americans
the
to
fill America's needs
can
fundamental
principles
of
unsound
will
creased
I
the
and
sure
down with
we
is
to
out
.
confident,
a
is
to
more;
for
in
New
products
to spending.
individual
will
added
Circulation of
high in 1955.
and
have
Research in
have
its
a
is
up
and
It
is
more
usual
ability to meet the needs of the in¬
resources.
this
job if
we
are
not
the restrictions and heavy financial
and wasteful government.
burdens
in
acutely
the
overall
effect
coupled
than otherwise in such
many
to
CLYDE
B.
in
business
places upon the
crease
MORGAN
and
new
potential.
an
interesting
durable
The
servicing the increased popula-
....
ing,
and
been
steadily increas¬
Rayonier
continued
growth
still
of
foresees
'
a
r
acetate,
cellophane,
tire
cord, several important plastics, etc.
—for many years to come.
This is
based
belief that the
the
will
North
be
one
increased
fibers,
human
and
to
people
living,
the
free
America
continue
billion
of
standard
peoples of
side
largely
our
of
for
The
' of
-
and
As
these
Doubtless/'1955 will be
and
shelter.
Chemical cellulose, as the lowest cost
and
most economical raw material for
such
an
even
which
a
control
1D55
Genera*
horizon
as.
-
has
Baking
areas
The
as
refected
a
year
come
into
full
consumer as
•
of
we
We must also,
a
Serious
one:
For many
growth
York Stock Market is ample
and
since Keith
p^rt
is
always
detailed
any
and
development
of
American
Furskm,
a
the
personal interest
President
of
the
him
intrigued
statements
hesitant.
by
an
about the
Yet,
from
invitation
to
project
future, but mudence
this
Capitol
Hill
van¬
are
Legislative branches controlled by opposite parties.
we
can
expect much "middle-of-the-road" type
Thus
of
lawmaking, bearing
fluence
v
ofiourse, maintain quality
industry costs situation'is
;
Government is almost at dead center with the Executive
the
not
a
Chronicle
perhaps perfment.
National legislation will be enacted without any jar¬
ring changes from present laws.
The direction pf our
monu¬
should
developing
continuing confidence of the American
tage point, a few remarks
welL
in which
is
Financial
avd
home town of Madison, S. D.
It is evident
leadership is proving of great value in directirig
ever-growing and ever-widening circles of stodk
makes
plant at
for not only
which
ever-pre?sent dangers.
own.
One
our
in which the industry
bloom
these
Commercial
investfrient'activities throughout the nation.
pre¬
by expansion
sense, our new
in
my
my
one
"
Thus,
should
that his
only for the industry but tcr keep our rgood*
reputations..
savings
domestic
economy.
industry:
future
Stock Exchange, is a South Dakotan Who was born and
raised at Ramona, a small town 15 miles away from
watch the trend toward more cosmopolitan tastes. Con¬
sumer research can be
of-great aid- in this vital facet of
our
the
for
Of late years, Wall Street has had
on
ern
greater future in most industrialized countries
are
continuing to enlarge their cellulosic fiber
of Presi¬
living.
.the
the
the
I believe 1955 will be another year
manufacture, has
Importation of chemical cellulose represents
of
scarce
dollar exchange and
provides for
employment,) and generally sounder
earlier will
both politi¬
the first to realize that the prevailing mood
has extended into nearly all phases of our
of the
*
efficiency. Also, I believe
in which the efficiency created in 1954
industry but for the
production.
,
year
among
America
toward
the
of
peon'e
con¬
a<|ded sales and for the distribution of
a
Mundt
Karl
business.
will repeat its vows for more
it will be
oeonle
The activity of the New
ment'to
Clyde B. Morgan
considerations
Administration
outlook
indication
•
view
markets.
Spartanburg, S. C., may be termed our newest
a strong belief in the future.
*.
two
standards
clothing represents a basic
need, ranking only after food
.
may
new
our
of the first steps will
consumption of textile
as
with
pro,diets more quickly to new
production capacity. In this
out¬
their
basi^/food.'
industry
Hon.
all
American
present day
Our industry faces not1 only the normal com¬
pared for
living of
rising
this
crowded
firm
world
is
rise.
raise
on
•
that
national
a
are
stant energetic attacks against our product by. the -uni;, formed purveyors; of fancy and worthless substitutes
—rayon,
of
To,be sure, this does not rival the famed
Readers
>
petitive strains from within the industry, but the
cellulosics
the
legislate
definitely be measured against this calm confidence
mature
,
has
then
betterment
and from sporadic outbreaks in Central America.
Apparently the American people are placing their faith
.
cellulose
and
coast
"
tion with its product, but in fact plaees a demand upon
During the past year the position of chemical cellulose
him to develop the new market,
yreated by the expan¬
as
a
world commodity has been further strengthened.,;
sion, to its greatest, potential.,
'
For example, the first 10 months of 1954 show that
In the bread industry there is a special need for donRayonier's overseas shipments increased 138% over the
v stant expression
of the fundamental truth tb«fc4he Staff
similar 1953 period.
of Life is a must in the daily fond requirements**^ every
The world demand for chemical
consumer'.
a
in the- prevailing
Capitol Hill.
Strangely enough, all of this has developed in spite
of the continuing threat of peril from the Soviet Union*,
and the actual sounds of gunfire from the- South China
expanding
population inmanufactured the responsibility
of doing more than just
Rayonier Incorporated
had
Congress has opened with
new
the
of
our
is one in which competition is
direct proportion to the increase
'
President,
have
of. Good Feeling*' in the Administration
very
baking industry
more
from with¬
pressures
long-term
think
I
■
in
The
felt
calm
Monroe, but most assuredly this Capitol Hill
aimosphere is a trend in that- direction.
But while this occurs, competition between,
the manufacturers of non-durable goods becomes keener.
loaded
the
dent James
favorable
products.
do
can.
by
mood of comparative harmony on
between
torn
/
.
unusual
"Era
economy as ours to find that the wants of the consumers
are
our
of their Gov-*
course
from' within
parties.
still
we
present prosperity.
We must have
that
the Executive and Legislative branches-from
*•' *
r«?v««.■£>: cal
lines is being continued
accelerator
say
disp.ay of bi-partisanship in both public
pledges and personal.actions on the part of members of
L. Morrison r
impact
probably will remain.
money
..
.
beginning of
distinguished
situation
the
an
George
very
many
"
;
we
The
sorrje
production
the
at
:
the 16 years
American welfare.
forward-
even
Our
second
Dakota's
the., next.
world
ail powerful consumer
more.
10 years as South
'Now, however, it ap¬
will have the opportunity
to thoroughly study the national and
'•* '*
spending
saving
and
pears
prosperous*-'*
Our .economy
"
my
tendency., in the past, to cause Capitoi Hill to legislate from one crisis
flex
and
are
Unavoidable
but *
have untapped vast human and material
currency.
bureaucratic
of
are
cases
population.
am
erect
Dakota
erhment. '
»•
prosperity.
prosperity
more
MUNDT
South
confidence' which the American peo¬
I
that"
guarantee
affairs
ple have in the
*
founding fathers.
in population do not of themselves
guarantee greater economic activity, as witness the low
the
stand
country.
increases
levels in countries like China and India.
to
moving/'trhe
our
Mere
1955
-
Uryted States today is experithe effects of many stimuli.
We
freedom and narrowly limited government powers which
guided
here
overly-caQtious;
Vlontinuing
uing
national
'
if they will return
maximum
indicate
r'-~
'
-
over
Capitol Hill, I would
on
the
approach.
sense
to
E.
Congressman in the. U. S. House of Repre¬
VIrr looking back
than is the United States at the pres- ent time:
V',
paid for by the savings of investors.
*"To
encourage savings tjhe investors must be relieved
of the onerous burdens 'of taxation and they must re¬
ceive a fair return on their savings, after taxes. To per¬
mit the widest play for he ingenuity of our producers
they must be freed of government controls and re¬
an
best
as
the sirlews of its economic structure
be
straints, including the hazards of
KARL
S. Senator from
which followed
First District
No nation in history ever was better-
production.
These
U.
Senate term
■
.
do-not"'
warp
1955 than in the year
just closed.
January of 1955 marks the beginning of
confidence providing we, use
to
in¬
mining equipment are confi¬
anticipating better business
dently
HON.
aver¬
MORRISON
and
alertness 4isbest
are
.evident from what has been said above
of the American
common
mean
should "be
we
"Man's
1955 with
wisely
enthusiasm
our
proved
do not
•
Texas, to replace former facilities there.
philosopher
forward to
know-how
our
Improved and additional wire and wire specialty
manufacturing facilities at Aliquippa.
(6) A new Container Division plant at Port Arthur,
famous
Morrow
whole.
a
interpret them combine to forecast a-good
ahead for the baking industry. J think we all can
year
(5)
A
D. A.
in
able to
are
power
of the GPU
Economic developments and the business trend
we
•'
/
<■;':
.
.
J.
ac¬
sentatives.
Additional facilities at Aftquippa for" .producing
high-strength and special seamless product§#£pp Thq/oil
industry. '
L.
of
ers
to be¬
us
President, General Baking Company
l.
(4)
I*-
slight falling off last
A new
GEORGE
in
equipment is becoming more activO.
Foreisn demand likewise continues
good.* In consequence, manufactur¬
re¬
the trends of business
for
particularly
electrical
expect the
Past experience leads
ages
Morehouse
W.
ago,
to increased demands from*
steel "and
dustries.-" Under these conditions the
•
E.
installation of:
and
.the
market for the latest types of mini
rig
System pretty well mirror the
expect to proceed with construction
we
year
a
response
compared
tivity in the service
Pa.
Lancaster,
than
based
subsidiaries
conditions
sumed after the
lieve that
markets
metal
We therefore
1954.
year.
^
During 1955,
System,
our
long-term rate of growth to be
finishing facilities to make highstrength pipe for the oil and gas industries.
(2) A new Tin Mill Warehouse at Aliquippa, for the
stockpiling of tinplate for can manufacturers.
(3) A
combination
Warehouse-Container
Division
This
business
the
improved, exploratory work in
locating new mineral deposits, is ex¬
panding, and coal demand is better
1955 for the Gen¬
Utilities
reports from
Prices in
have
Pennsylvania and New Jersey, is
for a moderate to good improvement
/"As part of our planning t'O'meet these. dep^n.ds/.we
have completed these projects during 1954r
in
accelerating demand for the
high production types of ma¬
chines.
in
at J&L
r
Public
upon
'
an
-
MOREHOUSE
The outlook for
not
arise from our American genius, for. re¬
may
search and
W.
1
•
-
Mining machinery sales are pick¬
ing up. The prospects for 1955 indi¬
Vice—President, General Public Utilities Corporation
;<
economic future..5
;;
mentioned the potential new.,mar¬
have
we
E.
t
heating and air conditioning, for appliances,
trucks,'you begin to get a rounded picture
'
,
as
,
it
which
J. D.A.MORROW
latest
for autos and
condition
President, Joy Manufacturing Company
related needs for construction
ment, for
changing
/
•
every
1
class of products in the field
wasted materials.
the
championship fight. The contest¬
top condition, alert, aggressive and
in
might face.
"silvichemicals," and for which we have
higjj Hopes. The new chemical field of silvichemistry
can ke likened to petrochemistry as it is
utilizing once-
add to these construction needs all of the
and earth-moving equip¬
be
must
and
shrewd, knowing that neither would be in t.ie battle if
they did not have all the requisites of survival.
And typical of the ring
champion, the baking indus¬
try has survived good times and bad, and is equipped
program
climaxed
was
the introduction of
,,
you
can
Rayonier's overall
service, stations, roadside restaurants
stores.
where expansion of chemical cellulose
economically take place to meet these
world
some
economy, climbing graphs
creates
a
condition
similar to
optimism
boxing ring during
ants
world demands.
tion
population demands new churches, parish houses, com¬
munity houses, recreation facilities, and water,, supply,
sewerage, gas and electric utilities.
'
With new highways and streets, there comes a de¬
and
interesting to observe at this time that the
continent is among the few areas in
and
surpassed.
of expanding
year
general
cellulose.
American
free
new
that by 1970 our population may reach 200,000,000.
Besides new homes, schools and hospitals, the growing,
..A
This, in turn, favprs the importation
rayon..
also
production
and
mand
is
North
ing technology, and from the urge of the American peo¬
ple to improve their living standards.
Our population has grown by 20,000.000 since 1944.
In a recent speech, President Eisenhower said that there
are five new Americans coming into being every minute,
as
chemical
It
companies, costs have risen more than prices
firms have found their break-even reached
or
development of such cellulosic in¬
continued
the
governments of most nations
thaLthe
Rayonier finds
88
Thursday, January 20, 1955
...
m
in
mind that the dominant in¬
Congress is conservative since the
Republican-Southern Democrat
cooperate
much the
same
as
.
group
same
will
no
during the 81st and
West¬
doulbt
82rid
Congresses under the Truman Administration.
Barring
- fairx
\viir
an
ro
unforeseen explosive situation, foreign afdoubt be confined to a continuation 6f
SecrefaTy of State John4" Foster "Dulles'" excellent
Continued
on
work
page
&2
-
Volume 181-^Number 5396
The'Commercial and Financial Chronicle
(347)
business
of
Continued from first page
--
-
essential
to
Fourth,
:
Next Ten Years in Retailing
mental
and
fiscal
policies intro- assumption of
duced by the Eisenhower Admin- relative -world
a
istration
nation's
created
environment
an
of confidence and incentive which
government
greatly
to
eased
After
process.
justment
the
transition
downward
a
which
less
was
that
directed
others
devote
State
and
government expenditures
public investments
-
of
growth of suburbanization
stepped
up
tremendously
needs for highways, schools,
rapid
have
it
make
more
the requirements of
Federal,
highways, schools, etc.
The
expanded population, the decentralization-of•- industry,- and the
That,., of
goal, and
are
1
is
as
the ambition and
of
to
necessary
our
our
hospitals, sanitary and water sys-
resources
eign investments.
An increase in
the flow of goods among the free
to military preparedthen, o>f course, less of our
modern
fonSriif
livings^e provision of
about
which you will undoubtedly hear
with
merely
maintaining
stant
rate
Even
though
at
was
want
of
economic
business
near-record
-
to
year
levels,
the economy
see
If, despite all our efforts,
including preparedness, a general
war should develop, the destructive power of modern weapons
would leave those fortunate
sion.
con-
a
activity,
last
we
expand
has in the past; we want to
continued improvement in our
standard of living.
it
as
enough
see
In
.
recent
a
present
comment
on
caust
and
in
crease
ade.
In
the
of
course
"But
to
behind.
ing.
must
we
not
stand
:
is
Productivity
fall
against
trouble,
ployment* atRather
rising.
accept
or
its
must
we
is
.present
We
First,
Gf
ten
level,
This
is
breadth-taking
a
pect. .-What
being
are
able,
what
chances
our
basic
%
..
past.
the
;
no
question
drastic
many
[n
and
industry. -While sthe
structure-of
.has
progress
been
not
of
the
the
140
million.
Bureau
as
;
the
great
was
Achievements
American
ican
r
economy,
jgo
years
truly
are
of
The
fact that
of
nme
the
^increased
"of
the-past
25
astounding.
;
physical vol.
the
nation's
about
output
100%
birthrate
the
of
thirties:
•
since
in
million
will
(which,
over
this
1965
twice
country
be
-
>'
about
'
:
incidentally,
the
the
population
year
I
*"
was
born).
.
•
million. V
the
wen
Economy
over
low
population
/
.The achievements of thie Amer-.
;
*
*
during -V
the Census estimates that if recent
in 1929.
as
>
fertility -rates continue," the total
history, tee physical volume of
as
1
minion
fnceed. Despite prolonged depfesand t; e most destructive war
Astounding
:-
,
the esti--
a.m.,
Census
During the past year the
population increased by about 2%
persons.
The Bureau of
'the
jthe nation's output in 1954
has
1.929
that the rate of expansion
averaged about 3% a year,
The implications of t. is statement
•means
•has
Second,
been
technical
research
greatly" expanded
has
and
in-
tensified in recent years, and is
currently backed by expenditures
amounting to some $4 billion an-
nually.
While
directed
along
much
of
military
this
..
is
lines,
we
...
expect it to produce important
results both in .-the way of new
can
The
number
of products
and
improved
techproducing this output in-, niques of. production. Here again,
.creased by only about 1% a year, the
prospects are good,
whereas real product per manThird, is the volume of capital
hour showed an
are
enormous.
persons
annual
average
of about 2%.
increase
Much
.
the
ot
fductivity,
rand
in
there-
expansion,
from
came
increased
both
pro-
Increased
pro-
Iductwits;,
in turn, was made poschiefly by a-high, an4
-i1}rate
creasing
of
(ment, by rapid
capital
invest-
and accelerating
•technological
improvement
and
by continue us improvements in
organization
Other
and
management.
contributing
advances
in
It is essentia| for the
-maintenance of a
vigorous and
prosperous
where
of
the
factors
education
output
of labor
in
workers
were
is
aie
unit
continuing;to operate?
all of them,
stepped-up rate.
more
which
closely
are
.•expansion.
;•
per
health and working conditions.
Are these factors still in ex-
They
,
larger
input, and improvements
lstence and
Let
some
.
some
us
at
a
examine
ot the factors
involved
in
.
;
more
convenient
tbis djrection
with
continued
.
I preface these remarks by the
the
railroad
is the
taken last year
was
passage
0{
a
tax
dependable to
use
only
one
to
of the population and the economy,
An important forward
step in
pne
'biu
which
contained provjsions designed to stimulate business cap;_
.
.
i
and Santa Fe
only railroad under
management
Chicago,
linking
""
California,
outiays
and
industries;
to
Si, si, si, chico! It's
and
minimize
investment and
tenance of capital outlays at
high
leveIs consistent with the growth
Xhe
skills of the woiking population,
shifts
to
economy
fluctuations in
manufacturing ,pr0vide incentives for
the main-
dist) lbution.
,sible
4
investment
-
_
store
*
*4
rate 'Of'■ ■normal.
ision
about twice
■
exceptional and the current '"High
rate are- mfcrfe nearly
.cumulative growth has been great
.in
,'
time,
by the "Population Clock"
Department of Commerce
the
Was
business
even,
fa.
•.
'
quite probable that
its political climate,, in
relations with other nations,
in. the
"
The birth v.
At that
war.
morning, at 8
mate
shown
years—in
jts
proposals
—■——*-
•.
the fulfill-
on
.
and
..-in
high level since
a
.
t
cer-
the
e
1
ar
Continued on page 93
.
dynamic influence
•
■'
^ "average annual increase
has
withstood the thirties^of less than' 1
changes over-the, it-now seems
:
Our^.^economy
the part of,
which
nn«=ihio
Ship and Travel
-
lobby was 164,001,723.
ing a $500 billion economy within
This represents an average net
the next ten years are excellent;
growth since - 1947 of about 2.5
.We have, for example, the record..million a year, compared with an
of the
t
It pays to
-
•
chances of achiev-
our
prosperity
.
'
approximately
This
•
its implications for. the
industry?
I believe
be
was
are
retail
,
the population of th^ United States
of
And
is
the end of the
pros-
achieve -It?
to
,
^tracte
^
con-
a
the
of
some-
rate has been at
tional production ,ol $500 billion."
.
of
ment of this condition.
na-.
a
on
Admin-
modifica-
continuing high'rate of popugrowth. Barring war, there
a
can
toward
years,
foreign trade which the
lation
bevord the goal I mentioned
earlier—wjtliin
significant
'^international
our-international
.
-•
his advisers
market factors:
unem-
advance
busi-<-*
assessing
essary as a result of the modest
and realistic proposals relating to
policies will" require some degree
•
busi-
Any
.
01
foreign trade and for-. bf adjustment
■
■
/ ■"——
v. * -"v
'
.
In
proceed
proceed .to
now
us
sideration
than simply to plan
more
As
can
you
President and
Let
our
Our labor force is grow-
must do
and
In
to
rest.
still
-' r
the opportunities for
industry.
of
--
*
economy
1
merd
"llon
.
and
thus make possible the attainment "
our economic potentials.
•
this state-
ment, the President said:
increased
have insuch a holo-
will help the world find its way
to more
peaceful pursuits and
production to
$500 billion within the next dec-
are
we
avoided.'
I think
Fifth,
of •;•■/
state
a
•
segments of American
the assumption that the efforts
on
in-. of the
an
national
in
But
that
be
can
nessmen,
the outlook for the future, President Eisenhower envisoned
hope
creasing
the
situation-
economic
survive
to
utmost poverty.
bility as a wnuuucu xn&ai am*
increasing rate of private investment.
tain
ness
countries of the world, continued the impact of proposed modificaefforts toward equitable adjust- tions, it is important to bear in
ments in tariffs simplification of mind that the resulting adjusttariff structures and safeguarding ments can be made much more
and encouraging foreign invest- readily in an expanding economy
ments these can greatly aid the than in a static or retrogressing
sustained and healthy growth of economy. The American economy
°ur domestic economy, while is so basically sound, so inherfostering the conditions of eco- ently flexible, and expanding at
P?.1??10 p°wth and political sta- so rapid a rate that any internal
5P y abroad. On all these counts, adjustments which might be nec-
terns, and other basic facilities for
ness,
many
had
If
self-seeking
ad-
severe
had feared, we have
gratifying
indications
of
than
policies
end.
o c a
which
progress.
for such major
of
continuation
peace.
is this
course,
are
traditional
1
investment
economic
91
primary
jevej
is
Gf
confidence
requisite
business
in
the
roots
0f
^be
dence
jn
the sound
American
deep>
vate
for
present-day
Colorado, Texas, and
a
investment
future.
.
The'
,
confi-
future of
points in the busy southwest.
the
economy are many and
we have faith in
free, prienterprise, and belief in the
soundness
nomic
of
the
program
policies
beliove
SANTA FE SYSTEM LINES
Presi dent V eco-
and
government
■"*
for "-the .years ahead.
I
this confidence will '<
Serving the West and Southwest
that
continue
to justify and stimulate
the sustained and increasing level'
m
'
The Commercial and Financial Chronicle
smoothing
in
again, engineers, designers, purchasing agents,
production experts and suppliers are hard at work
paring down color-TV costs. I foresee a more sizable
rent.
"trouble spots' of inteinational
the
out
diplomacy.
His policy of "friendly firmness" appears
to be getting global results of a gratifying nature.
On the economic front we can expect the Government
their caves.
to
One could
present low levels.
supplying components for applications
undreamed ol\ a couple of years ago. Much of this new
business has a seasonal cycle fitting in between that of
radio-TV, thereby providing a more uniform activity
throughout the year. This is a welcome development.
Lastly, the tremendous number of radio-TV and other
electronic equipment in everyday use is reflected by
steadily rising parts volume. Our industry is fortunate
in having a distribution setup second to none, catering
to servicemen who have progressed from mere handy¬
men to skilled technicians and more recently
to hard-
G. MORTIMER
CHARLES
who
Men
know
Corporation
reason or
all
signs
on
about economics
more
and I have
wish not to accept their forecasts. Certainly
our horizon indicate that the year will be
predicting a good year in 1955,
than I do are
no
great deal
a
steady growth
continued
of
one
expand and diver¬
electronics continues to
Non-radio
sify. We
President, General Foods
for
packaged food business.
And
"steady" to me means substantial
but not spectacular.
In addition to the prospect of gen¬
eral economic strength, there is the
central fact that there are 7,500 more
mouths to feed each day in these
United States. For a food manufac¬
the
are now
headed businessmen.
Projecting the major trends as delineated in 1954, I
another year of good business and further ex¬
pansion.
foresee
MUNNIKHUYSEN
K.
W.
Thursday, January 20, 1955
.
is
in
factor
often
further
a
Executive
encouraging
today's situation that too
the food industry lose
sight of—possibly because we are so
close
for
G. Mortimer
Charles
is the
That
it.
to
significance,
ties.
Of
tions that
try—on the farm and in the kitchen.
The
industry,
and
must step
we
what has been
at
Then we'll
see
what this
In
These results
more
One elementary economic fact, it seems to me.
composition
the
of
so-called
"food
Koppers has established a definite
is that
dollar"
has
ranks second in sales.
changed
drastically since the 19th century.
Then it
went mostly to pay the man who
laboriously tilled the
soil to give us fairly crude, unprepared food.
Today it
pays as well for the services of semi-preparation, for
scientific packaging, and for the added values of con¬
venience and better living. And, in the
process, it also
makes a big contribution to better income for more
Americans generally. This is all good and
very sound
and promising for the future—as I'm sure
people will
if
agree
we
in
the
food
industry
help
make
it
Our company made substantial progress during 1954
in its programs of expansion and development. A major
acquisition was the purchase of the 10 wood-preserv¬
ing plants of the American Lumber & Treating Com¬
pany.
These plants now have been consolidated with
the company's Wood Preserving Division, giving that
Division
Three
better
into
President, Clarostat Mfg. Ce., Inc.
radio-electronics.
Rather
First
and
-
tion
the
"lows"
table
of TV sales is
sets,
fears
of
now
of
previous
saturation
entertained
a
evaporated
as
sets
the
models.
with
The
in such
against consoles
as
ture"
Brand
established
were
21-inch
and
TV.
or
years.
may
steel
even
more
as
17-
bulk
to
"furni¬
with
company's
in
North
America.
operation
at
make
great
a
been
or
-
Construction
Edison Co.
1954 was another in the much too long
series of degenerative years. Politics continued to dom¬
inate American life, particularly in the field of eco¬
nomic policy. The once free market is now completely
controlled
by government, and, of
course, government is controlled by
politics.
The
money
and
credit
supply for private as well as public
expenditures is determined with a
The
year
view
"needs
the
to
desires"
and
the
vote
of
demands
and
It
moment.
the
is
the
of
people now, rather
longer-range effect upon
the
strength and integrity of the
nation, which governs the politician
seeking
to
gain
or
hold
office.
Hence, the floodgates of money and
credit were opened wider in 1954,
and
the
inflationary and
utterly
unsound,
"no down payment and
lifetime of installments"
policy of
Wm. C. Mullendore
financing new homes was approved
and
underwritten
by the public credit, through the
than
the
of the U.
S. Government.
overspending and overexpansion by the
private citizen urged almost to the point of making
incurring of further debt a test of patriotism; but Fed¬
eral, State and local government spending of
more bil¬
as
another bulwark of "prosperity."
plunged ahead in the wild orgy of debtcreation until both private and public debt (more than
$600 billion) has far exceeded any and all limits of
safety or common sense. The integrity of our people,
lions
of
hailed
was
Thus
have
we
institutions, and the last vital reserves of credit
being undermined and exhausted.
Leaders in business, government, and other areas of
wide-spread influence, close their eyes to these facts.
our
are
Those
few
who
actionary and
of
good
as
parents.
these
dare to criticize, are ridiculed as re¬
spreaders of doom and gloom. And yet
sincere
advocates of bigger debt, more
spending, larger families and ever-increasing consumer
debt, are not only patriotic citizens, but they are also
As
good
parents,
they would not inten¬
tionally spoil their children and deprive them of their
rightful heritage of integrity and strength by urging
them to self-indulgence, or
helping them to cultivate
habits
and
debts which would deprive them of their
develop into healthy, sensible, self-reliant,
independent, honest and able citizens.
chance
to
Free and easy spending of
money we have not yet
earned, abuse of credit, unbalanced budgets—all these
contribute to unbalanced lives, and unbalanced lives
lead
to
the
a
unbalanced
stress and
nations
strain
of
which
another
may
tip
over
international
under
(or
even
domestic) "emergency."
The
road
to
prosperity is not down this highway
leads through Big
Government, unlimited con¬
debt, price-fixing, wage-fixing, business depend¬
on government
spending, and the morass of money
which
sumer
ence
and credit inflation.
The road
loss of freedom. Yet this road
we
are
leads to
to
adversity, and
adversity is the one
continuing to travel in 1955, recklessly and at
increasing speed.
•
*
even
come
machine
of
now
Atlas
is
in
Steels,
suc¬
Ltd.,
useful
shapes for
insula¬
Acquisition
of
American
Lumber
&
Treating
Com¬
also gave Koppers rights as exclusive manufac¬
turer
and
supplier of: the widely-used water-borne
preservative for wood treatment, Wolman Salts. Wol•manized lumber enjoys architectural acceptance in the
light construction fields
Two -New
The
year
dustry's
^
Our outlook:for business in 1955
also
brought
a
more.
of parts,
dip soldering and mechanized testing.
Although color TV did not make an appreciable dent
substantial
increase
in
in¬
interest in Koppers Electrostatic Precipitators,
These
Products Division at Balti¬
large precipitators
would
be
lost
recover
through
materials which
industrial
material, such
a
exhausts,
flyash, which
pollutes air when tossed from industrial smokestacks.
1954 set
sales, ft did score marked technical gains
with larger screen sizes. Relatively few setsproduced and even less actually sold. Nevertheless;
notably
telecasters have taken the initiative in the chicken-and-
A new laboratory for mechanical research was com¬
pleted and put into use at Baltimore, Md., and the com¬
pany's Tar: Products Division opened* a new - develop¬
ment- laboratory adjacent to Koppers /Research Center,
Acquisition of the business of American Ore & Reclamatidn" Company late in 1953 resulted in Koppers be¬
coming a major supplier of sintering machines for the
steel industry.
That industry is sliowing rapidly-m-
...
*
is optimistic and
con¬
Although our company operates; regionally in
States, also Hawaii and Alaska; a terri¬
tory that is experiencing a rapid increase in population
and
a
dynamic business develop"
the 12 Western
ment,
we
feel good about
the pos¬
sibilities for business in the country
as a whole because: We are in com¬
plete
accord
desire
to
with
place
prise
the
President's
private enter¬
responsibility it is
upon
all of the
willing to accept.
Moreover,
we
are
convinced that private enterprise has
obligation to not only aceept this
opportunity but also to actively co¬
operate in bringing about those social
gains that will improve the health,
an
security and economic status of all
of
our
people.
These social
objectives, it seems to
be reached without forcing
can
our
Laboratories
manufactured by its Metal
•
MURPHY
fident.
me,
brand, new-ideas whereby to slash assembly
During 1954 automation began to take
big way, with printed wiring, automatic place¬
the-egg cycle by scheduling elaborate color programs
which, although seen in color by just a handful, never¬
theless stir up growing anticipation on the
part of the
ROBERT E.
Divi¬
pany
second and third sets
wood
new
a
MULLENDORE
C.
the Board, Southern California
Chairman of
1954 in Koppers opera¬
plant
variety of
and also collect nuisance
were
This
the
hold in
in
year
Engineering and
otherwise
a
built
in 1955.
be presented
may
President, California Western States Life Insurance Co.
time and labor.
ment
also
Preliminary to operation during 1955 of its new
polyethylene plant, the company started production of
this plastic on pilot plant scale at its Verona, Pa., Re¬
search Center,
homes already enjoying TV.
Victor Muchcr.
Engineers and designers have led
the way in
simplifying chassis layouts and cutting cor¬
ners
still sharper.
Purchasing agents have also done
their part in paring down costs.
Parts and materials
suppliers have had to resharpen their pencils, recheck
up
Division
tion, toys, decorations, packaging and other applications.
Whatever
mechanization, and
The
Koppers Research Department and Chemical Division
developed and introduced a new type of polystyrene
plastic which expands under heat and can be molded
these
introduce further
that
W.
on
Welland, Ont.
new
in
costs,
area.
plants are
Division's activities
highlights of the
cessful
two ago, have
popular-priced
have
extended
not only into
lowest-income-group homes, but
year
the
the nation.
the West Coast,
for the first time
throughout
plants
acquired
were:
The
stripped
have
34
sion designed, and its Metal Products Division built, the
first full-scale machine for the continuous
casting of
foremost, 1954 launched
priced
the
that
Some
com¬
major trends, in-'
creasingly evident year by year, provide far safer guid¬
ance.
By simply projecting what happened in 1954 into
the present year and thereafter, we
have the basic blueprint for our con¬
tinuing activities.
popular
company
Highlights ef 1954
fortune-telling is required to foresee what is
in
of
of
preserving plant at Horseheads, N. Y., during the year
and started construction of a similar plant at Salem, Va.
VICTOR MUCHER
ing
total
a
extending
understood.
No
and
policy of growth in the chemical field and this policy
is
a
continuing one.
Among our six divisions, the
Chemical Division, which was started only in 1946, now
any
the
facilities
present
place greater emphasis on de¬
velopment of new and improved
products for the future.
-W. Munnikhuysen
farmers, manufacturers, grocers, and consumers than
statistics on averages and percentages might be.
are
of improving and
program
its
con¬
will
important, I think,
consumers.
its
will
Koppers
'
and additions in 1954 have prepared
to take the best advantage of all oppor¬
most
enlarging
jobs for people in processing plants, increased oppor¬
tunity for distributors, and better meals for all of us
to
quarter of
third
the
addition,
tinue
means
markets for farm crops, increased
as
in
the year.
back for a moment and take a
happening in America's kitchens
America's farms.
on
terms of increased
in
plant is expected to get into
operation late in March while the
Texas
plant is
expected to start
ginia
production
high-grade
being de¬
Not only was
"squeeze-bottle"
plastic, polyethy¬
lene, and to completion of a plant
at
Salem, Va., for the company's
Wood Preserving Division. The Vir¬
dramatic
changes in the kind of meal prepara¬
tion consumers prefer today add up to real opportunity
lor able food processors.
And the vast improvement in
American farm productivity in the last two decades is
one of the factors that make its attainment possible.
Our job, it seems to me, is to adjust our sights and
our thinking to the facts of these two benign revolutions.
For a glimpse of what lies ahead for the whole food
look
Inc.
amount, sizable portions will go into the
completion of a large plant at Port
Arthur, Texas, to make the popular
this
of the two sweeping revolu¬
are going on in this coun¬
us,
Co.,
Koppers
Vice-President,
Koppers Company, Inc. will spend in excess of $20,000,000 during 1955 for new plant and equipment, and
in enlarging and improving present production facili¬
in
we
pleted.
Improvements
agency
turer, that augurs well.
There
ore
tunities
by year until color-TV is
..
.,
..
,
further—but the forthcoming months of
go
iron
commonplace.
Meanwhile, the uncertainties of color-TV have been
reflected in our parts business. Late in 1954, the ordering
of parts was too often for smaller quantities wanted in
a
still bigger hurry. Such spotty ordering is not con¬
ducive to full-scale production-line operations. The price
structure can be seriously endangered. This is a serious
problem which set manufacturers and their parts sup¬
pliers will have to work out if prices are to be kept at
tell their own story.
1955 will
.
.
interest in sintering processes as
supplies of the United States are
creasing
the
year
in
effort
every
But
production in 1955, with geometrically progressing sales
providing for an expanding
economy.
With the forthcoming Presidential election
of 1956 well in mind, both political parties will invoke
no
slowdown of?the present revitalizing trend of busi¬
ness
In fact some searching can be expected to con¬
tinue for measures guaranteed to keep our economy on
a
rising basis.
Disciples of gloom aie rapidly taking
make
to
Price remains the big deter¬
color-blind audience.
still
90
Continued from page
*.)
**
.
(348)
92
citizens
to
be
Robert E. Murphy
dependent upon
government to the extent that their private initiative is
The increased facilities for civilian production
accompanied the change from a "shooting
'War1* economy, is providing a vast amount-of goods for use
and consmptkm.
In order to utilize tnese goods,salaries and wages must be maintained to ^provide mar- kets. This means that the sates departments: of business
crippled.
which
have
,
are
challenged-as they have-never been /challenged in
Prosperity follows in/the-footsteps
In my opinion,1;he most -profit¬
able investment that a company cam.make; is in - the inV
tensive training of salesmen.
'
-
nearly two decades.
of successful salesmen,"
We believe that 1955 will'reward/those businesses who
Continued
vn
page
94
1
Volume 181
Number 5396
Continued
from
page
.
The Commercial and Financial Chronicle
..
(349)
Changes in
91
broader
In
Next Ten Years in
Retailing
merely
offset
the
temporary dislo¬
cations which may be involved.
Sixth, the reduction
now
under¬
in
the proportion of the
military take of total output will
way
rise in the proportion of
going into consumption.
Already, with the lowering of
taxes, both consumer disposable
income
and
spending have in¬
permit
a
output
creased
totals.
to record
Future
expansion
of
the
con¬
sumer
market
will
trends
clearly
discernible at the
aided
be
by
present time.
For example, the
growing proportion of younger
and older people in the popula¬
tion and the very great increases
in various forms of social security
will undoubtedly tend to lift the
volume of consumption. I have no
doubt
that
the
merchandising
genius
will
this
retailer
influence
its
felt
in
that we can
of some $500
trillion, or $500,000 million—by 1965 is based on
the extension of our past history.
expectation
have
an
economy
billion—half
All
is
a
things considered, I think it
an
expectation we can look
forward to with confidence.
What
This
All
Means
to
the
Retailer
I
not
to
imply that
the
increase
to
a
$500 billion
economy in the next decade will
be
automatic
or
.inevitable;
neither do I mean to suggest that
growth will proceed at a regular
pace.
We all know the workings
of the market place sufficiently
well
to
recognize that pauses,
spurts,
and
declines
occur
at
varying intervals. Moreover, their
effect is uneven; some lines of
trade, some industries, some lo¬
calities may be in the doldrums
while
others
are
enjoying in¬
creasing business. But these are
merely some of the characteristics
of a free economic system; a cer¬
tain degree of instability is* a re¬
quirement of growth. We accept
the
necessity
for
hard
work,
imagination, and enterprise: they
do
be
will
mean
in the future
needed
less than
no
the
in
past when such
accomplishments were re¬
vast
But what does all this mean for
What will
retailer?
in
like
be
retailing
billion
$500
a
changes
What
omy?
econ¬
must
take
the structure and prac¬
tices of retailing to meet the re¬
place in
quirements of a $500 billion econ¬
omy? What is retailing's respon¬
sibility for helping create a $500
billion economy?
What are some
problems retailers must
anticipate as the economy con¬
tinues to grow?
And what will
all this mean to your own indi¬
vidual retail organizations? These
are
some
of the things that as
the
of
responsible businessmen
to
These
shifts
real
have
proportion
you
thinking about.
The task right now is
need
The
in character and outlook and
people in both
the younger and the older age its whole way of life is changing
All of this has pro¬
groups will continue to increase accordingly.
in
both
tion
numbers
and
in
propor¬
found significance for the retailer
to the
general population in who does not want to see his mar¬
years ahead.
This changing
ket gradually move out from un¬
structure
is of great im¬
the
age
portance
der him but on the
retailers.
to
one
of
greatly expanded
market several years
ahead. What
the! individual merchant can do
depends largely on his own cir¬
And
cumstances.
can
pinpoint
situation
for
capitalize on the great market
Youngsters need special types
goods. Their demands change potentials which the
dynamic
they
advance
progressively forces
at work in American so¬
from
pre-school
days,
through
elementary and secondary schools,
and on into college or into the
of
while
him
no
one
the exact
that will prevail in
his
particular community at any spe¬
the
At
other
of
end
the
holds
their
of
With
own.
important that he
give1 his attention now. A good
pla£e to start is with the cus¬
tomer
how many, where situ¬
—
ated, what ages, and what kinds
of buying preferences.
Reference
has
already
been
made
to
the
fact
million
a
Let
consider
us
some
managerial problems
that
mean
in
in
your
I leave it to you to
calculations
own
for
your own individual stores. Suf¬
fice it so say, present facilities
will
be
largely unequal to the
will have to be faced.
Consider, for example, the task
handling the increase in sheer
of
increase
volume
plant, fixtures, ware¬
personnel, organization,
houses,
make
the
the
of
and control.
merchandise
task, not only because of the far
greater demands which will be
that will have to flow through the
distributive system.
I asked our
placed upon them but because of
physical
volume
of
economists
in
the
Commerce
to
give
of
the
normal
approximate
sixe
obsolescence.
idea
some
me
ments
the
of
and
perhaps accelerated
The capital require¬
retailing in the years
ahead will be far greater than in
Department of
of
consumer's part of the $500 billion
the past and it is not too
total output we may expect in the
next ten years.
After manipulat¬
can
ing their slide
rules and
begin
making
thinking
be
about
early to
they
how
met.
Plant
that, allowing for the government
improvement and expan¬
will have to be
planned with the greatest care.
and investment components of the
Here,
various calculations,
they tell
that
we
may
net addition of some 25
to the
national
output,
me
sion
programs
long-term
as
Continued
reasonable cal¬
a
the
of
opposed
on
page
to
95
importance
Cash in Vault ami Due from Batiks
lu S. Government
Secretary, Bearings, Inc.
JAMES E. CAMPBELL
President, The Campbell Coal Co.
JAMES H. COOLIDGE
Vice
needs. We
now
have in this
HOWARD P. EELLS,Jh.
President. Basic Refractories, Inc.
of
or
this rate
construction should continue,
increase as well it might, we
six
past
will
have
lies
in
and
50
some
farm dwelling
creases
million
LORI.NG L. GELBACH
number
the
of
average
President
Vice President in
size
addition
to
the
tion
and
related
will
also
be
a
merchandise
.
.
.
627,758.55
2,672,184.33
.
1,821,308.05
......
$509,269,677.74
.
.
.
...
!
.
.
.
,
.
.
.
...
.
.
.
,
,
$341,607,243.14
.
.'.
132,205,357.51
Acceptances and Letters of Credit Outstanding
Expenses, Taxes, etc.
"/
$473,812,600,65
627,758.55
4,070,289.08
........
5,658,107.83
.
a
The percentage of individ¬
.
.
$ 11.250.000.00
2,600,921.63
.
Total Liabilities
United
*e< ure
Sui'Irtifel
.
25,100,921.63
.
,fc.
Government
'
$509,269,677.74
obligation* carried
S61.808.446.33
at
depoait, and public fundi and fur other purpoiea
as
pledged
are
to
required by law.
★
\.. F. LAY LIN
Earnings
1954
lib
HOWARD J. McGINN
Operating Earnings
President, Eaton Manufacturing Co.
Operating Income
2,366,520.03
Federal Income Tax
MOTCII
.
Provision fur Federal Income
Treasurer,
on
The Motch &
Year
$13,605,449.54
9,247,522.7"
$ 1,087,625.14
8 4,357,926.77
$ 3,454,115.17
Operating Earnings before
Chairman
President and
Quarter
,
.
Operating Expense
JOHN C. Mel I A.N NAN
Mcrryweather
•.
.......
Tax
Operating Earnings
435,000.00
Net Operating Earnings
Machinery, Co.
Profit (or
loss)
on
......
$
Securities Sold—After Taxes
2,035,000.00
652,625.14
$ 2,322,926.77
303,060.58
(135,619.83)
W. J. SCHOENBEKGER
Total Earnings Before Reserves
Cleveland, Ohio
.
.
Transferred
to
Valuation Reserve for Loans
Transferred
LESTER M. SEARS
Chairman, Tow motor Corporation
to
$
517,005.31
$ 2,625,987.35
235,000.00
$
(or from) Valuation Reserve for
Securities
.
.
Valuation
.
$
335,000.00
(135,619.83)
to
303,060.58
to
Reserves
Earnings Added
Oglebay, Norton and Company
.
.
Total Transferred
K. W. SLOAN, Jr.
Vice President and Treasurer,
in
is
value $16)
par
11,250,000.00
L nuivided Profits
Cleveland, Ohio
E. FRANKLIN
direct in¬
Capital Stock (703,125 shares,
Surplus
Statement of
of
impor¬
heavily
preponderant and increasing pro¬
portion of new home construction
is of the single-family type,, lo¬
cated in outlying and suburban
areas.
5,050,000.00
29,320,948.29
161,754,742.23
.
Senior Vice President
.
.
.
...
.
Undivided Profits
$
99,380.17
$
417,625.14
638.060.58
$
$ 1,987,926.77
W. A. SOUTH WORTH
.
Per Share
Squire, Sanders & Dempsey
H. J. WEAN
it
•
JAMES M. K1LLPACK
industries, there
connection
.
.
Li ABILITIES
Demand.
Time
HERBERT C. JACKSON
such items as carpets, fur¬
niture, housewares, and
many
this
6,294,350.15
...
Liability under Acceptances and
Outstanding
Deposits:
Partner, Pickands, Mather & Co.
course,
In
....
Total Assets
President, The Albert M. Iliglcy Co.
powerfully stimu¬
the industries pro¬
tant to bear in mind that
$110,353,64-3.28
- 191,374,742.86
ALBERT M. HIGLEY
stimulating
a
.
.
.
Total Capital Accounts
In¬
lating effect on
ducing the goods that go into these
new
homes.
This
includes,
of
of
charge of Finance,
Secretary, Republic Steel Corporation
fami¬
family are among the basic fac¬
tors underlying the housing boom
we
are
now
experiencing; they
will undoubtedly continue to be
In
.
.
Valuation Reserves for Loans and Securities
W. WAYNE HANCOCK
non-
units by 1965.
the
in
If
years.
.
Accrued
units have been started in each of
the
.
coun¬
dwelling
_
President,
Harris-Seybold Company
and
non-farm
million
President,
Chairman and
the
try about 40 million non-farm
dwelling
units.
Approximately
one
....
GEORGE S. D1VELY
housing
increased
...
Accrued Interest and Other Assets
Thompson Products, Inc.
thus created for satisfy¬
greatly
ing
and
.
Other Loans and Discounts
Banking Premises
in
.
.
Letters of Credit
Cleveland, Ohio
markets than
age-structure of the
population is the growth in num¬
size of families
.
Customers'
OKO. S. COLE
.
Obligations
Other Bonds and Securities, Including
Stock oftlv? Federal Reserve Bank
Commodity Credit Corporation Certificates
Loans Guaranteed or Insured
by Federal Agencies
DUDLEY S. BLOSSOM, JH.
the changing
and
1054
Dank
Chairman, The Astrup Co.
terms of impact on
ber
Statement of Condition
ASSETS
ther increased by the growth of
private industrial pension plans.
Altogether, the older-age market
promises to be of increasingly
greater significance in the future.
more
AVENUE
December 31,
WALTER C. ASTK1JP
Congress enacted, an enlarged
flow of income is going to this
particular
group
of your cus¬
tomers.
This flow is being fur¬
even
PROSPECT
Uoiidensed
of
Of
WEST
Directors
the
ual home ownership is likewise
population during increasing. The character of con¬
sumer
demand originating from
the next ten years. 'This total in¬
crease
has
tremendous signifi¬ personally - owned, individualcance
in itself in terms of the family, suburban-located homes is
over-all increase in consumer de¬ markedly different from that orig¬
mand which it implies, but this inating from rented, multipleunit, urban homes.
is only part of the story.
expect
physical
terms
and the like?
of
40%
a
of Cleveland
terest.
is
total
requires
does
highest levels of policy direction
12JI
recommended and the last session
lines
it
it
What
Central National Bank
broadening of social security cov¬
erage
which the Administration
retailers have
which
And
during
1954.
year
ma¬
de¬
goods
and
services
changes markedly from that char¬
acteristic of their working years.
We have a great deal to learn
about the old-age market. An in¬
creasing number of older people
live
on
social security
and on
insurance and pension benefits ol
various types. With this increas¬
ing independence, more of them
are preferring
to live in house¬
other
to
order.
buying of all
services
for
mand
which
in
high
consumer
and
age-
scale, as people pass to later
turity, the nature of their
the future, we can
time
goods
and
a
consumer
buying
perhaps $340 billion.
roughly two-fifths more
work force.
call his attention to certain areas
cific
contrary wants
to
preparation, not just for the next effect of high investment outlays
buying 'season or the next fiscal fqr new housing on the construc¬
a
country.
unskilled manual
for
be
is
than total
increasingly skillful management,
of by which I refer primarfy to the
come
of
number
would
This
workers in industry is decreasing
strong factors in the future.
be
year,lbut for
this
of
culation
adaptability; it requires
The shrewd judgment, and courage of
meaning for merchandisers. As a
steadily and the proportion
result of
the
higher birthrates
technical and white collar workers
which have prevailed since the
is growing. The number of people
war, the proportion of people in
the younger age groups has .in¬ attending colleges and universi¬
ties doubled in the last ten years,
creased
substantially.
At
the
and will probably double again
same time,
because of the great
strides this country has made in in the next 15. Leisure time ac¬
health and medical care, the pro¬ tivities are assuming greater im¬
portion of those in the older age portance. The population is be¬
increasingly middle in¬
groups has also sharply increased. coming
pressure
corded.
the
lation.
of
structure
ciety are constantly bringing into
being.
'
/ " : "
'
" '
' '
This is not an easy economy in
which to live. It puts a tremen¬
dous premium on resourcefulness
as
direction.
same
The
American
the
of
make
Striking shifts are occurring in
the age distribution of the popu¬
the
perspective, this is
aspect of marked
which are taking place
occupational and income
one
changes
in
than
Occupational and
Income Structure in the Making
93
.
1.55
S
6.20
$
Provision for Federal Income Tax
President and Treasurer,
The Wean
Earnings
Operating Earnings before Federal Income Tax
Engineering Co., Inc.j
Warren, Ohio
on
Operating Earnings
2.90
.62
Met Operating Earnings
......
.93
$
3.30
S
1
JAMES A. WEEKS
Thompson, Hine & Flory
MYRON
II. WILSON, Jr.
Partner, Wilson, McBride & Co.
Statement of
ALEXANDER T. WOOD
L. C. WYKOFF
Arttr, Madden, Wykoff 4c V
Earnings
Total
Duzer
.
..........
$13,714,546.49
$12,987,994.86
............
417,625.14
1.987,926.77
$14,132,171.63
$11,975,921.63
Deductions:
Dividends Paid
an
.
Additions:
Current
President, The Wilson Transit Co.
Surplus anil Undivided Profits
Total-Beginning of Period
Total—End of Period
281,250.00
1.125.000.00
$13,850,921.63
$13,850,921.63
Member Federal Deposit Insurance Corporation
J
The Commercial and Financial Chronicle
(350)
94
effective action
92
Continued jrom page
should
sound, aggressive selling and whose
top managements keep as close to the problems of selling
as they do
to the problems of organization, production
believe and practice
Studebaker-Packard Corporation
President,
will capture substantially greater shares
cars
markets. Manufacturing economies
already realized, and anticipated, from a major facilities
modernization program have enabled
their
respective
model year.
in
are
a
Nance
more
than
advance orders for Packards
Clippers. These
orders were
20,000
and
market
to
more
run.
there
of
declines
market
: ;
some
liberation
new
Corporation is going to
Studebaker-Packard
new
the
philosophies of each of its predecessor
units.
offer
to
cars
styling, but will not get too
far advanced over induustry patterns and will combine
to build and engineer for outstanding quality attainable
through the combination of modern facilities and worker
craftsmanship.
We are firmly convinced that in the automobile busi¬
there is still plenty of room for
ness
believe this because
individuality.
We
sizable segment of the American,
a
house that looks like
the neighbor's, doesn't want to dress like the next fellow,
eat in the same places or drive the same kind of car. If
there is one thing that makes an American different
from other people it is his belief in the importance of
being an individual.
public doesn't
Therein
Packard
to live ir>
want
we
believe
role
that
Studebaker-
Corporation will play in the automobile busi¬
Today, more than ever before, people
strating this desire to be themselves. And
ness.
that
this
trend
is
are
we
demon¬
believe
George A.
prospects for corporate earnings and dividends
market
in
1954
are
favor¬
belatedly took cogni¬
of the true values of securities.
marked a
of a return to
year
It
yardsticks.
described
as
confidence.
a
It
may
of
year
There
the
and-most
enthusiasm.
prudent investor will
mittments
more
best
be
reasons
However,
scan
power
new
have
some
continue
L.
a
nical correction in
the
as
market
was
more
as
advances
are
The Federal
Reserve
nature
of
should
be remembered
a
mild
Board
warning
action
than
was
anything
that the power
more
in
the
else, but it
exists for more
;
*
the
better jobs
evidence
of
the
better
and
past
proves
Of course, our population is increasing
;
*/
•
.
in
time
should
and
that
maintain
is
as
sound
a
a
storehouse
dollar
and
of
the
at
that acts
one
medium
a
respect,
one
We
favorably, and not as a deterent,
exchange. One thing that puzzles the
of
but we/do not have, the money, except by
going in debt
and burdening future generations. I wish I had the an¬
There
mobile
is
be optimistic over the
The dealer has en¬
to
reason
outlook.
1955 auto¬
swer
serious carry¬
over
problem.
Behind him is the
full weights of
factory advertising
and, quite generally, a new product.
Sales promotion should assume rec¬
proportions.
will
on
flow of
a' sound
basis the
it,
annual
national
of
1955
rate
of
will
$306
-
independents
units.
Robert
° er
i
probably experience
More than
upon
U.
are
In
to the wage and
no
in 1955, production
units. Used car prices
more
than their usual
of challenge to the automobile mak¬
1955 is a pivotal year in automobile
year
as .we
do credit
facilities in 168 United States and. Canadian? cities, must
meet a stronger and more eager
competition in the auto¬
industry. We are confronted with
our objective in 1955 to improve
of the four major companies in this
mobile sales finance
battle of terms.
position
of
our
large nationwide corpora¬
America.
Here he*
was
em¬
a
see
S.
terms of the
tions of
that
;
'
objectives of the Employment Act,.I
appears
"another
year.
PATMAN
Congressman from Texas
little in the outlook for
optimism
good
WRIGHT
good"
in
1955 to warrant the kind
official
year
of
government
predic¬
for the economy.
Instead
of
recovering the "maximum" em¬
ployment, purchasing power and pro¬
duction
levels that prevailed
until
early 1953, before the advent of the
"sound money" era, 1955 is likely
to
be
another year in which the
gap
between actual and potential
full
employment
demand will be
widened. As a result we shall prob¬
ably witness a further growth of.
unemployment and budget deficits.
Growing deviation from the objec¬
the
demand
tives of the Employment Act and
a
themselves,
financing. We at Associates, maintaining
our
,
0are
"
are
new
need,
get around this obstacle; but I haven't.
that new methods will be
HON.
Without work stoppage
approach 5.8 million
we
firmly; believe
1955 should prove to be a
earner
realigned
knowledge, skills,
rather expensive acquisition, knowing
full well that of every dollar his corporation earned,
52 cents of it would go to pay taxes. Faith like that built
America—may we never lose it.
because
accrue
the
anything that
was
barking
sales
in national income should
have
do almost
admire him for his faith in
income in
approach
billion or
demand
consumer
to
.
to
greater than 1954. This
provide a continued expan-
of
that-we
considering and offering to purchase another
corporation. The president of the purchasing corpora¬
tion gave a very fine talk and I could not help but
the greater share of the expected in¬
a
of how to
2%
should
fact
A few days ago, one
tions
entire
car
the
found.
•
public demand.
see
first half
sion
geared
is
However, -1
Sustaining all this
both£ new and used
we
about
no
facilities
credit
be
finance
an
with
ers
and
that
labor and material
1955.
seasonal fluctuations.
overdue
employment,
more
think
I
in
Arthur J. Neumark
of this character should be expected
resumed.
)s
writer
should
frequent corrections
that I believe
of challenge and opportunity faces Associates
Investment
Company
and
the
automobile
industry
could
mar¬
.
the plus side
on
In the past, it has proved
good currency, but in the last ten years it has
a
same
A year
new
Board
be
wealth.
chases would substantiate the sale of at least 5.4 million
heavy wave of selling for
few days. Actually a sizable tech¬
hu£e
defense—
overlooked;
furnish
failed
crimination
a
national
the minus side.
rapidly.
Board,
and the usual share of this devoted to automobile pur¬
The recent modest increase in
and
looking
are
expending
are
Our money needs attention.
Meanwhile Chrysler and
engaged in an all-out
The ulti¬
mate arbiter, the consuming public, should have a dis¬
posable personal income of something like $260 billion
exists.
often
factor
one
this conclusively.
Associates Investment Co. & Associate Discount Corp.
the
com¬
still
approximately $39,000,000,000 for the fis¬
ending June 30, 1958: Federal taxes will
or no change from 1954.
'
~
1
salaries.
area.
battle to recapture their share of the market.
the
manufacturers
We
money for the military
year
will
OARE
of the
most
year.
my
to
ROBERT
and
good
a
things, new machinery, new labor saving devices.
opinion, we are probably making more progre£s
in this direction than in any other period of our
history,
and I think it is all on the plus -side.
These advances
In
Our business is in a very sound position.
expand our services and facilities' to
Chairman
good,
t
to
to do
to
with the steady growth of this
pace
1955.
In fact, some people consider it
What I am referring to is the tech¬
nological progress of our economy; new and better
ways
deposits and anticipate our loans will continue around
We do not expect any major change in
money
rates unless general conditions require'some
restrictive action by the Federal Reserve if : inflationary
We
of
There is
increase
that at current market levels
the need for greater caution and dis¬
the Federal Reserve
cal
present levels.
keep
Some peo¬
highr—probably little
in
trends appear.
national
the estimate is
be at least ass good as the
We should
satisfactory 1954.
very
in
been
sums
development
in production and registrations.
ing
induced
has
Niagara Falls.
In 1955 oifr business should
the
»The automobile companies have expended huge sums
for retooling and redesigning their 1955 models.
The public acceptance, rthus
far, of these new models
on
new
below
were
we
more
cf money
cumulative bene¬
carefully, recogniz¬
gins by
,
its* established
To
average.
with the needs of our growing economy in
directions.
For instance, our highways are not
direction
it
optimism, and believe
years.
national
up
at
rather than to business and industry.
Nineteen fifty-five will see one of the great competi¬
tive battles in American industry continue unabated as
Ford and General Motors attempt to outstrip each other
believe that this confidence
will,
be maintained in 1955 and
may very
well carry to the more extreme emo¬
of
is
too
salary
to
tion
a
think
the
f\
optimistic prognostications for the
■■
forward
prosperous
below
nearly adequate, and the President is advocating a na¬
tional highway program.
Our schools, sanitation and
other public faci ities have fallen
behind, and probably
at least a good start will be made in
catching up in this
Seaw&y and I quite possibly the
crease
returning
good
are
caught
several
fits of the Thruway, and the start of construction of the
the
zance
normal
There
hope and I
business can:be added the impact and
As
The economic outlook for 1955 is
good. Gross National
Product is expected to rise from 4% to 10%.
Overall
stock
for
in-
billion.
$3
ple are saying that total production and income in 1955
will exceed the banner year of 1953. One of the favor¬
able factors for 1955 is the fact that we have not as yet
this
highly industrialized area * of
Niagara Frontier will have one of its
I
and
created by
NEUMARK
Partner, II. Hentz & Co., New York City
The
plowshares.
cause
I share this
Newbury
ord
customer, as an
individual. As we enter this transition stage in the
years
ahead, we feel people will prefer a car of individuality
—especially when it can be had at a competitive price.
able.
affairs in
for
1955 than I have heard for many years.*-
year
year.
fort and drive
J.
that
oppressive bur¬
world
seen
income
Here, in the Detroit Area, I believe
ParshaU
have heard
I
in part this feeling of hope that
gives buoyancy and substance to the
prevailing optimism for the new
tered the year
to meet the desire of the
p.
average.
is
beginning to show itself in the
automobile industry. Up to now the industry has largely
concentrated on achieving mechanical
perfection and
the advantages of mass production.
But the pendulum
is swinging; there is new emphasis on
styling and com¬
now
ARTHUR
to
The
The above figures are nation-wide.
;Some areas in our countrv showed
; increases over last year while others
a
the
is
into
least
of
distinctive
and
the
that: I- have
individuals,v disposable
.cteased
approximately
noble endeavor to turn men's swords
at
combine
will
Studebaker-Packard
advanced
direction
as onev could reasonably expect.
/Fronv figures
statesmanship. They, with their
counterparts abroad, are charting a
busiest
over
^
-were
from
ahead,-and it is well to
I corporate net income before taxes in
1954
deqiined an estimated 13%.
and
Buffalo
.
|
Mr. Dulles for their vision
dent and
little
a
,by most informed people.
Over-all
*business was. down from the banner
.year of 1953, but not down as much
dens of war, feat* and poverty, give
hope for the years ahead. We should
be profoundly grateful to the Presi¬
be an increase
models, advanced/
styling and increased in preformance, to be competi-v
tive to anything that is built.
-s
,' •
•"
PARSHALL
The year 1954 was a year of transi¬
tion and I believe about as expected
H.
priced V-8's, and Packard with its new
P.
f*
some
will mark the beginning of a new
and brighter era of world history. Certainly the policies
and accomplishments of the Administration and the tire¬
less efforts of the Secretary of State to bring about
peaceful
co - existence
and
man's
competitively speaking.
The
had
Buffalo, N. Y.
in
indus¬
make plans.
It may well be 1955
approximately 400,000 units over the year just closed.
Part of this increase is due to the narrowing of the gap,
Good examples are found in our
corporation with Studebaker reducing its price of the
Commander V-8 to be directly competitive to the lowest
financing
'
really know what the future will
see
can
Manufacturers & Traders Trust Company,
President,
of
carry
us ever
we
GEORGE A. NEWBURY
that 1955 should see the
5,600,000 cars, which will
about
None of
consequence.
back
us
1955.
bring, but
increase to 75%
was.an
According to the latest infor¬
mation I have, thousands of these cars are already sold
by our dealers. This is very gratifying to see, person¬
ally, as evidence of the tremendous interest on tne pdrt
of the public in the long awaited new Packard and the
first new luxury car produced under the new Packard
economists tell
'automobile
years.
seems like yesterday that I was
reminiscing a bit
looking ahead to 1954, and now we must look into
that year and the
scription of the new cars.
of
It
and
100% and the
four months
Following subsequent cuts in margin re¬
placed without benefit of sales folders or other product
information beyond our field organization's general de¬
sale
to
period still
that
of
stronger position to
already received
have
interesting
is
increase in margin requirements
rising market. In February
active
an
1946 requirements were raised to
of
bull
than
1955
compete in every price class.
Even though our public announce¬
ment will not be until mid-January,
we
ary
the
through^ the
HOWARD
again in July of 1945 requirements were raised re¬
spectively to 50% and 75%, yet it was not until May,
la4d that the market reached its peak.
In fact, in Janu¬
car
new
in
Packard
and
1954,
dealers
sales
in
and Studebaker
of
greater volume
the
industry
a
point to
barometers
economic
for
program.
The best
try down
Thursday, January 20, 1955
.
maintaining the stability of instalment credit
characterized
on January 6, 1951; yet
following showed a consistently rising
trend, interrupted by one important reaction. It is also
interesting, to note that reductions in margin require¬
ments had on several occasions been followed by stock
on
policy, and still put more
performance
and
luxury features
into these cars than in any previous
J.
which
quirements, bringing them back to 50% in March, 1949,
prices and
our
Packard
pricing
All
it
action,
margin
to
subdued
line
the
hold
to
respect
not
Studebaker
reduce
to
us
James
field while
excesses
and
that our new Packard, Clipper and
confident
Studebaker
against speculative
my
.
President, Bank of the Commonwealth, Detroit, Mich.
note that in the past an
has
of
It is
opinion that this present
general level of stocks may be best characterized as a
realistic one, but not as one that yet reflects the ebullient
spirit that usually develops in the last stages of a buil
With
J. NANCE
JAMES
are
brake
a
market.
and financing.
We
as
they develop.
.
It is
as one
dangerous widening of the
is a consequence of the mone¬
tary policy, wliich the Federal Re¬
euphemistically refers to as
Writfht Patman '
"fostering orderly, economic growth."
It is also a result of the Treasury's tax policy, which is
gap
serve
Continued
on
page
9ft
Volume 181
Number 5396
Continued
from
.
.
The Commercial and Financial Chronicle
.
shift
This
93
page
(351)
home
Next Ten Years in
short-term
considerations
particular
importance.
The
of
are
This,
is
house"
"discount
truer for the retailer than perhaps
segment
for most
cost,
businessmen,, for a retail
much more,closely tied
store, is
to
specific
a
cific
for
location
geographic
example,
takes
tify.
market
a
spe¬
than
is,,
manufacturer. Mis¬
a
made
once
and
hard to
are
rec¬
A store once located is hard
.
of
Other
same
trend
,
.about
growth
the
in
little caution
can
bankruptcy.
much
Too
place iron bands
can
future;
too
The
cisions
lead
straight ta
quality of de¬
capital investments de¬
on
the
about
tion
compiled and analyzed by
the Department of Commerce and
I
available
chandise
ward-looking
Personnel
likewise repre-
engaged
persons
will
future
There
nine
in
this
to
increase
of
morale.
to
service
but
this
kind
is
of
mer¬
itself?
phenomenal growth of the
wants
kind
of
to
spend
with
one
point
choice
to
as
his
the American
yet little
increasingly important
present-day
The
conditions.
both
re¬
a
re¬
convenience
of
nature
the
oi the. retail, business
vital
tailer to
in
the
be
be
for
and
the
of
his
competition
which may
opportunities
created
by
the
constant
flux
is
picture
a
of
expanding
many
and
pansion is in the cards gives
markets.
The
fact
that
ex¬
rea¬
son
them
prospect of fluid growth makes it
parking difficulties,
the
but
increasing size of families makes
for confidence
clear
that
the
have to be
on
and
hope. The
businessman
will
his toes pretty con¬
conventional
shopping
a
treal, stantly. I think that you—and all
chore for many housewives. While busiqessmen—will respond to this
shopping by telephone and by challenge.
mail represents a very great in¬
Our very awareness of economic
in convenience for custom¬
crease
ers,
it does not necessary repre¬
increase in cost of selling
sent any
I
of
have
the
introduced
discount
houses
subject
the
and
ten¬
dency to transfer the point of sale
from
the
merits
enormous
being
regularly,
and
asset.
These
rationale
of
constantly
these
to illus¬
as
that
the
Let
us
up
"The
changing'
year
most
all continue to be
structure
Americans
to
presents
free
land.
and
We
the
busi¬
lives as
for
certain
going to put
on
With this
ment.
our
our
know
future is
premium
high
in
two-fold
a
future—in
concerns
citizens.
that
have
We
its
in
good
keep open
we can
the opportunities for achievement,
drawing
to
a
close
and
rich rewards.
reaa
"CHEAP" TOOLS SHACKLE INDUSTRY AND TRADE
As
about
freedom;
of
high
the
alert
entrepreneurs
to
real
de¬
activity we antici¬
pate, competition for better quali¬
serve
what
mand
on
fied
segment of the buying public.
workers
suggest
improve
will
be
intense.
I
other
types
in this respect.
of
and
rates
sation,
work,
and
organization of
is another
and
important innova¬
any
Moreover, such practices are
not likely to prevail for long: we
have too many built-in safeguards
in
retail
society of both
our
an
economic
nature
be
important
Growth in size
of challenge.
area
the
of
tion.
vancement.
The
houses
course
to
opportunities for training and ad¬
enterprise
substantial
a
have
engaged
in
practices. But this sort
of thing is likely to occur in the
methods of compen¬
hours of
to
part of
a
unethical
par¬
ticular attention needs to be given
to
as
curred;
count
industry
I suggest that
the
sees
Undoubtedly, abuses have oc¬
undoubtedly, certain dis¬
that retailing could well
its competitive position
vis-a-vis
he
much
hear
to
entirely adequate for one level of
activity may be seriously deficient
be
for
before
"unethical
finger of
legal and
there
this
on
In any event,
employment will create seri¬
problems; organization struc¬
tures and procedures which were
a
for
to
score.
point the
practice" at
we
Use of
painful.
ous
higher levels.
More impor¬
tantly, the never-ending need for
efficiency and improved service
will tax the organizing and ad¬
ministrative
capacity of retail
management.
sure
than that
else
it
of retailing
be,
may
will be
intense competition.
Concurrently with the increased
increased
demand
This will
by
the
Door-to-door
part
but,
above
all,
efficiency
continued,
to
of
door
re-
ing itself in the economic
for
a
has
certain
process.
has
in
been
constant
a
in this
history.
has undergone con¬
structure
Its
stant
change,
changes
in
industry
above
and
the
all
in
of
pressures
have
doubt
no
continue to be
teristic.
I
in
and
society
to
competition.
I
response
have
change will
primary charac¬
no
doubt
change will continue to be
that
a
pri¬
characteristic.
mary
Two types of consumer demand
—and
meet
the
competitive
them—are
efforts
constantly
to
pres¬
ticipate
The other is the demand for
can.
con¬
venience, which equally with the
goods themselves
are
part of
our
are
ing from
the
improved service and greater
the
stores
ing
are
with
mail-in
advertising
and
our
are
flexible, dynamic distrib¬
utive system is
meet
especially strong,
adjusting itself to
them.
order
and
larger
by no
usually
Sound money is a
urement that
trustworthy tool of
serves
the relative worth of
all
of
sorts
stabilized
con¬
and
means
in
the
many
put
out
in
use
their
Also,
seasonal
to evaluate
currency
meas¬
accurately
goods and services in
exchange activities.
scientifically controlled,
assures
an
processing,
maintenance
sound
physical structure having trust¬
worthy properties of high hardness and great
strength.
a
With
it
of
daily
much
individual knows
an
a
stablizing effect
economic life.
on our
The right to redeem currency
keep America free
.
.
.
for gold will help
ask your Senators and
Congressman
re¬
work
to
Gold Coin Standard.
meet
and
current
certainty,
and
future
engage
Write
obligations with
safely
in
trobe,
Innumerable historic
is the
vised.
ago
*
most
useful money system ever
Managed
currency,
initiated 15
de¬
years
in the United States, has impaired
our
Gold
League,
Pa.,
is
Excerpt
an
association of pa¬
triotic citizens
Republican
"Monetary
joined in
common cause
from
of restor¬
sound
Policy'
ing
Plank
system.
a
monetary
Registered trademark
While you are
waiting for
you.
5511
waiting for the return of 100 cent dollars, Kennametal tools, of premium value,
They
La-
for further
information. The League
examples have
proved that the convertible Gold Standard
The
to
Standard
creative
ventures.
are one
technological development that
One of
catalogs,
quent in issuance and more gen¬
tool and made it untrustworthy. A
return to the historic honest dollar will have
is able to make firm, fair contracts,
nessman
depart¬
nature, but
a
money
and vote to restore the
a
MINING. METAL AND WOODWORKING TOOLS
are
help mitigate the ill effects of inflation'
AND
KENNAMETAL
...
WEAR AND HEAT-RESISTANT PARTS
can
series of advertisements published in the public interest
INDUSTRY
tending to become both more fre¬
eral in coverage.
of value. Exclusive
serves—savings, insurance, pensions. A busi¬
com¬
areas,
department
becoming
is
stores
demand
is
coupons
ment
of
mail
pushing telephone sell¬
vigor,
life.
types
a
Big-city
was.
general.
present, both
great
catalog
by
and
chiefly rural phenomenon
once
records
superior worth of
measure
Foolish." Their purchasing value is uncertain and erratic.
further
the metropolitan
more
the
have
increasingly
finding
constantly improving standard of
At
experi¬
•
results
larger share of their business
prices, the perennial quest of the
buy he
still
is
telephone
The
prevalent.
and
to make the best
Much of this ad¬
becoming
are
houses
performance
tooling and production—
consistently. Kennametal has
Use of cheap money tools has likewise proved to be "Penny Wise, Pound
but
early
by
extra
of
assuredly the worth of his earning and
Selling
mail
Innumerable
production is
and do this
more
considerable
a
that
tinue to demonstrate the
merchandise
growth.
'
ent. One is the demand for lower
consumer
but
result
Kennametal* tools in their ability to reduce
over-all costs for
one
Door-to-
been encouraging and we can an¬
that
a
are
effort
mental,
only
in recent
lines of
being distributed
manner.
ditional
to
response
of
time,
and
more
merchandise
of
state
flux throughout its entire
is
been traditional
lines
long
years
the
time,
grinding, tool
reliable and sustained.
tendency.
selling
for
with
the
save
and idle machine
set-up time,
the
selling
this
visualization of the role of retail¬
The American distributive system
inventory,
cost—in
to
customer's home.
the
to
of ultimate
of
marked tendency
of sale to shift from
for the point
store
dollars
the
the
of
worth the
are
price. A few pennies additional cost will
growth
house;
to
operating
greater
performance is unreliable and inconsistent.
Sound, durable cutting tools
response
the
by
discount
quire not only constant attention
internal
for
service and convenience. Response
to the one
trend in demand is
other,
Foolish." Their
find the competition
we
re¬
one
more
demand for lower prices has gone
an
Competition in Retailing
Whatever
future
something
mean
we
typified
Intense
"cheap" metal-cutting tools proves the adage of "Penny Wise, Pound
the discount house, we had better
,ik,
manage¬
neither would I deny the freedom
level economic
of
good fortune in living in this
our
enterprise system, I
would not deny him this
.
us.
aware
are
we
he
money.
.
.
aware
both
ness
the year 1954:
and
history.
our
the grand opportunities
possible pitfalls that our eco*
of
and
and
cently remarked, in summing
advertised
best
stake
con¬
everyone
closely watched in
you
are
that
a
private
both
attention to the two
"Everyone
believe
to
provided
agencies
government,
accurate
The Secretary of Commerce re¬
the
the
an
are
of
stantly engaged in their analysis.
the
particular innovations
trate
facts
possession
much to explore the
so
or
the
military
for the
realized."
I
did realize
readjustment was in order,
and during its process close tabs
were
kept on the extent of that
readjustment;
the
most
recent
business fluctuation was probably
words,
nomic
tions,
after
come
build-up
of
production required
Korean fighting."
As
is a great asset.
dealing with business fluctua¬
from
Everyone realized
shift had to
a
rapid
events nowadays
customer's
to
store
the
of adjustment
one
peace.
that such
In
facts is
—usually quite the contrary.
to
war
I call your
What I have sketched up to now
people.
and
has been
and flow of American life.
fluid
Not only does it permit
to avoid traffic congestion
re¬
keenly alert to shifts
nature
to
and
importance
home
from one's own
holds great attractions for
shopping
exer¬
how
deep convictions
sale
to customer demand and
adaptation to changing social
an
wider de¬
a
of
customer's
as
It represents
home not
latitude in which to
the
less
value
the
in
point
the
to
sponse
and
what
who
customer
in
interested
his free
cise
about
the implica¬
the
In
the
gree of
selection, training, supervision
and
better
consumer's desire for
increase in terms
an
against
ing should be the signal for a re¬
appraisal of conventional mer¬
chandising policies for it is un¬
questionably a response to the
that this
are
audience
tions of such
this
of
convenience,
more
The
million
11 million in 1965.1 need not
out
and
retailing' to-1
day; the indications
number
in¬
management and
approximately
viewed
be
-
discount house and discount sell¬
great present and
challenge to the retailer.
are
were
greater
the alert, for¬
ta
sen
can
retailer.
relations
dustrial
sums
estab¬
.that
suggest
far
interested
nominal
in
gradually in¬
creasing costs which have been
characteristic of retailing for some
15 or 20 years. Undoubtedly part
and perhaps all of these increased
Here the vast wealth of informa¬
for
of retail
background
costs
be of great value to
the
of
represented
types
development
largely on the extent to
which they are informed decisions.
pends
segments
are
lishments.
for expansion.
low-
ing policies of certain of the more
to
caution today
toward
of the changed merchandis¬
some
traditional
signed
one
turnover distribution
with sharply decreased emphasis
on
service, convenience, and
"frills."
but
tailing.
so-called
represents
trend
a
the
-
of
one
characteristics of
high
to move; a
plant once built is. hard
expand unless it has been de¬
the
of
is
noted
Retailing
growth
of
thbi,store
from
93
(fywtrMA 4tv (PtXM/MAA
Q CZ3
ABRASION. CORROSION-RESISTANT PARTS
%
@D
PERCUSSION AND IMPACT PARTS
\
EDWIN
Continued from page 94
'
'
mistaken
ay
prospects in the period ahead. Mismanagement by the
Federal Reserve officials of margin requirements pro¬
vided the basis for stimulation of margin trading. Spee-
when
psychology was triggered by the Treasury
xdative
they reduced taxes on dividends and generalized accel¬
erated amortization of new investment.
A speculative
which subsequently resulted in a sharp
inflation of stock prices, thereby injecting a new ele¬
ment of instability in our economy.
A relatively mod¬
erate readjustment in production, employment, income
;kid earnings may now be complicated by financial re¬
fever was created,
unstable
new
make the outlook
superimposed
been
which
The trend in small busi¬
economic developments,
other unfavorable
upon
has
element
foreboding.
disheartening. Small firms are gen¬
erally more pessimistic than ever before. Many are sell¬
ing, out to their larger competitors; others are simply
folding up; and-still others are going into bankruptcy.
According to Dun and Bradstreet, 1954 was the third
business failures rose sharply. The 1954
higher than 1952. The 1953-54 merger
movement has led
the federal Trade Commission
to
launch a study of its causes. The causes are not hard
to find. One need only look at the sharp declines in the
'year in which
-rate
35%
was
profit rates for small business since 1952 compared with
the increase for the largest-size firms.
The year, 1954,
marks the fourth year of contraction in agricultural net
Income. Farm proprietors' income totaled $16 billion
id 1951, when the new "accord" in monetary policies
was established.
In the latter part of 1954, the season¬
the best evidence of the present good
business as we enter 1955. But there
be
and
ment
parison
business,
between
the
and
divorcement
no
historic
ally adjusted annual rate was slightly over $10 billion.
rigid acreage controls, is expected to reduce 1955 aver¬
farm income below the average level for 1954. The
prevalencee of a widely depresed low income area—24%
Ox all farm operators receive less than $1,000 cash in¬
come
a
year—substantially limits the market for farm
stricted economy, can
the
over
in
field
my
consumption,
mass
were
the end of 1954 than they were at the start of 1953
when
Administration
Eisenhower
the
have
We cannot
and
1955
to
will
finest
our
miracles of
electronics, we have the capacity to produce
and out of production payrolls we have a vast capacity
to consume.
Professional worriers might better devote
their attention to 1956.
T.
President,
of
ter
example,
mid-1953
since
quarter
the
marks
their
that
Indications
outlays on
U.
industry.
during the year, and the high postwar demand for
petroleum products tapered off. Added to this condition
was
the unusually
mild winter of
1953-54 which
than-normal
On the whole,
leum
States
threat
to
business
S.
plant and
petroleum
also
new
a
era
may
quar¬
money."
neurosis,
in early
even
a
fully threw off
never
1954, is working overtime these days. Over
at the Federal
into
which he
Reserve, they
full-fledged
to have broken
seem
of "meddlers' itch."
case
out
Ever since
they believed they had achieved their "independence"
from the
"politicians," the Reserve has been darting in
and out of the market with little rhyme
If
through
some
fortuitous
event
the
or
reason.
and
monetary
debt-management authorities happily do not upset the
economic applecart,
second threat to sustained expan¬
a
sion may arise after the
tion
Some
race.
leveling off of the auto produc¬
expansionary element in the
effect
that
is
now
coming from the auto
There is little likelihood that
construction
econ¬
foreseeable will have to supplant the stim¬
omy not now
ulative
new
industry
was
as
race.
this^ will emanate from the
the
case
bousing rose rapidly to support the
in 1954.
In
is
no
sion in
more
the
experienced last
likely that housing starts could contract
impact of
It
we
would
a
in
authorized
appear
that
a
preparations
tax
exemptions
be stepped up to
soon, as
waning
the
of
be
made
should
not
standby basis, to be effective when
employment reaches five million.
as
should
ought to consider whether
we
individual
on
bit under
restrictive credit policy.
along two fronts. First,
increase
It is
year.
a
release
a
an
un¬
flow of public works projects
Council of
Economic
forces.
Advisers
Beyond
observes
these
two
specific actions, I would recommend abandonment of the
"new look" in monetary and
debt-management policies.
Thee pre-accord policy of caution and the avoidance of
disruption arid disorder in the financial markets
in
increased
the
from
an
for
is
fuel
continue
considered
is
nation-wide industrial
should stimulate increased
demand.
industry-wide
quite favorable when
position,
a
and
are
we
3 to 4% increase
national demands. The nation's gen¬
West Coast and
eral economy, we
feel, should advance throughout 1955;"
weather conditions may be more favorable to
petroleum
consumption; and, on the whole, earnings of the petro¬
leum industry should hold up well.
The confidence of our industry in the future is well
illustrated by the fact that oil companies have continued
to invest heavily in capital expenditures of all sorts,
including development of new crude oil resources. These
expenditures, which contributed to the priming of the
nation's economy, should be maintained in the form of
additional capital investments during the coming year.
Abroad, the general prosperity of many European na¬
tions, as well as increasing industrialization of other
areas, is an encouraging factor when viewed in the light
of their probable demands for more petroleum products.
It is expected that these demands, in 1955, will increase
by 6% or more over the requirements of foreign markets
in the past year.
F. RAYMOND
.r
.
Public works expenditures by states, municipali¬
(2)
public authorities are bound to be very large.
than $6 billion of new tax-exempt securi¬
ties were offered in the market.
The proceeds of these
issues are being used to build highways, roads, schools,
hospitals, etc.
The population of the United States is
increasing at a rapid rate.
The standard of living is
rising, and the trend of decentralization from congested
cities to suburbs continues unabated.
These develop¬
ments create a constant demand for new public works
to which should be added the great pent-up demand
created during the war.
In 1954
more
Employment and wages during 1955 ought to be
higher than in 1954.
This will enable people
(3)
somewhat
their purchases of all kinds of durable con¬
goods
well
as
as
soft
goods.
services will continue
and
to
be
The
for
demand
great.
1954.
Expenditures by the Federal Government for de¬
may be somewhat less in 1955 than iri
However, they will still be substantial and con¬
tinue
to
(4)
fense
purposes
exercise
a
considerable
influence
business
on
1
activity.
(5) The liquidation of inventories which played an
important role in the decline in business activity in 1954
has
come
to
All
end.
an
the
indications
are
the
to
effect that in 1955
inventories, instead of being reduced,
will be moderately increased.
This naturally will have
a favorable impact on business activity.
'
»
The automobile industry expects to produce more
1955 than was the case in 1954.
Whether these
(6)
cars
in
expectations will materialize still remains to be seen.
It is, however, quite certain that the output of auto¬
mobiles
at
least
the
was
first
the
half of
case
1955
will
be
at
a
a year ago.
(7) Expenditures by corporal ions for new plant and
equipment in 1955 are estimated to be a little lower than
in 1954.
What the actual expenditures will be is, of
course, impossible to state, but even if they are not
larger than now estimated, they will still be substantial.
All the above
factors, taken together, clearly indicate
and
may look forward with great confidence toward
the future.
We should, moreover, bear in mind certain
basic factor affecting the future of our country, namely,
that population is increasing at a much greater rate than
was thought possible a few years ago; that the standard
of living of the people is steadily increasing; that the
that the forces operating in the economy are sound
that
we
economy is dynamic and that huge sums of money are
being spent on research which creates new goods and
methods of production.
Moreover, when to these factors
are
added the high volume of liquid assets held by
individuals and unincorporated business firms, and the
confidence of the people in the maintenance of a con¬
tinued high volume of employment, the future pros¬
pects for a steadily expanding economy are indeed
bright.
R.
PETERSON
»
in
higher level than
F.
(
PITMAN, Jr.
«
f
Chairman of the Board, First National Bank
Trust Company of Paterson, N. J.
President,. Pitman & Co., San Antonio*, Texas
&
...
.
The dire
predictions which were made in the middle
of 1953 about an impending decline in business activity
in this country accompanied by large-scale unemploy¬
ment were overly pessimistic.
The year 1954, on the
whole, was a good year. Business
began to decline in August 1953,
reached its low point in April 1954
then levelled off until
Business
activity,
the fall.
by
adjusted
index of industrial activity, picked
up considerably in the last quarter
and is now at a higher level than
at any time during the past twelve*
months. Throughout the entire year
as
measured
the
level
of
the
increase
in
sonal
in
the
hands
a
spending inducing chronic deficits.
A roaring stock market has a way
of feeding on itself, and since more
and
more
people, with increasing
the
favorable effect
largely guesswork.
major hasic sustaining factors seem
be construction, and defense
people, i.e., total income of
c
uals after taxes, was somewhat higher in 1954 than in
1953; and this in turn had
seem
to
unem¬
of
with a perverse streak
disposition, which I have, the
unanimity of thought—or lack of it
—causes some skepticism. There are
so
many imponderables in the im¬
cheap money, is going, full blast, at
in the securities market. The
wages in many industries
increased. The disposable per¬
income
For anyone
in his
least
ployment,
best antidotes to the distractive effects
upon businessmen
of the so-called "flexible*' policies
pursued since early
look.
Admittedly, the boom, feeding on
wholesale
moderate
,
predictions
commodity
prices remained stable and, in spite
of
In the 26 years in which I have been in the investment
banking business, I do not recall a time when so many
people in our industry have, been so unanimously and
unrestrainedly optimistic over the general business out¬
mediate and near term outlook that
the Federal Reserve Board
were
oil,
this
region
except
which
what
above
planning operations in expectation of
are the
1953.
hand
The outlook for 1955 seems to be
viewed
and
be
Second, plans should
expansionary
be
The general
Petersen
with
sistent
decline in inven¬
spending on plant and equipment. But there
expecting a repetition of the sharp expan¬
housing activity
S.
1954,
basis for
a
petroleum demand and crude oil production in the com¬
ing year, and being improved over that of a year ago
should result in refinery operations at a higher rate con¬
tory, government defense spending and the leveling off
of business
in
except fuel
Coast
on
starts
desirable.
be provoked
of "hard
itself
finds
products
situation,
recovery
Secretary of Treasury Humphrey is giving evidence that
inflation
the
stocks
influence
ties and
food
however, the petro¬
in the United
abroad
Pacific
oil
have
firms
from two
comes
early setback in business
by the evolving shift to
Iris
the
In
home
to increase
lower than they were a year ago.
are
favorable
large, and official estimates are to the effect
in 1955 may be even higher than in
1954.
The building industry will continue to generate
a strong demand for labor and materials and expanded
purchasing power.
that
sumers'
petroleum
healthy position. Total domestic in¬
ventories of crude
oil, and of all
equipment.
October may not be sustained.
expansion in 1955
ters. First, an
and
a
awarded is
reflected in less-
both
industry
exercise
present, briefly are these:
of
was
sales
products for heating purposes.
ex¬
that the rise in output and employment
are
that got under way last
The
new
California
of
1954 was one of adjustment by the petroleum
Business as a whole slowed down somewhat
successive
sixth
Co.
Oil
The year
T.
curtailed
PETERSEN
to
for
1955,
S.
Standard
The first quar¬
the attention of businessmen themselves.
Unless they fail us,
We have already started
year.
the immediate past.
will
Building activity throughout 1954 has been on a
high level.
The number of new construction contracts
strength of the nation.
be
that
factors
business activity in 1955, as far as can be ascertained
(1)
put the atom to work, we will witness more and more
This truism has not escaped
pansion of mass purchasing.
at
ficulty in working together, and that
Edwin W. Pauley
they will keep in mind their respon¬
sibility to cur economic future on which must ultimately
rest the real
future than in
The
on
Congress will have no real dif¬
when
an
in the
feel confident that the President
I
office.
assumed
expanding economy without
an
given
the in¬
run
production.
higher at
no
influ¬
a
How¬
I do not envisage any boom or any return to in¬
flationary conditions.
The productive capacity of the
country is great and is still increasing.
Efficiency in
production is steadily rising, and competition from
abroad is likely to play perhaps a more important role
ever,
Certainly that is true
of oil discovery and
dustry itself.
Finally, aggregate wages and salaries, which provide
for
improvement which set in toward the end of 1954.
prosper¬
of
outlook
equipment and consumers' goods sales to farm families.
support
ness
experience perhaps more
ence
operate in the economy in the
year.
Unless something unforeseen happens, busi¬
activity in 1955 will witness a continuation of the
new
charge of, say, defense and foreign
aid
nobody
various forces that will
com¬
free and unre¬
be valid. Those
a
age
the
health of American
govern¬
no
Thursday, January 20, 1955 >
Obviously, in these uncertain days,
really can tell what may happen in the
sphere of international politics, it is extremely difficult
to make any predictions.
At the same time, a bank
comes
in contact with every
phase of business and
finance and is, therefore, in a position to assess the
when
prosperity
today's
ity in the days of
in
of
hence
periods of
Another depressed area is agriculture.
Secretary Benson's flexible price supports, coupled with
business decline of last year
from the Administration, is
foreboding
very
.
What about 1955?
shook off the very
proper encouragement
can
is particularly
ness
and
real
with
with which the economy
ease
industry than those who
percussions in the stock market.
This
The
..
activity in general.
However, business became very
competitive, and competition is still increasing. " ^ J *
PAULEY
Los Angeles, Calif.
M
that feed¬
the Brooklyn cowboy's notion
as
W.
/
ing the bull is the best way to fatten a herd.
I see nothing in the present picture that either war¬
rants exultation over the state of our economy or its
a
The Commercial and Financial Chronicle
(352)
9G
on
business
frequency, buy stocks, not for in¬
come or long term appreciation but
Benj. F. Pitman, Jr*
"because they are
Continued
on
page
98
Volume 181
Number 5396
.
The Commercial and Financial Chronicle
..
(353)
own
securities
This
ments.
would
Securities Salesman's Corner
much
be
less
tually
Some
years
written
to
of the
fered
a
these
turn
by
you
Mutual Funds that of-
booklet
a
dealers
that
accounts)
new
already
going to seek out
are
members of
are
change and
the
accounts
future outlook for business for the
a
stock
a
depend
you
This advertisement
year.
pulled
some
far
the
as
excellent
quantity
of
However, when
goes.
city
where
floating
who
results
there
population
were
more
who
as
in
used
of
at
the
sales
interested in buy-
a
few hundred shares of stock
pects
quick turn than in investing
of
long term growth,
results
in
that developed
from the ad
practically nil.
zation had
than
and
then
advertising
you
enough in-
equipped to follow.
market.
The advertisement
the wrong kind of leads.
some
in
who
more
ad
could
You
might
stable
have
should
be
pulled
been
know
sell, and
must fit
Used in
I
up.
of
interested
ad
productive,
plied
a
You Should Know Your Own
ment
were
unlisted
Fla.,
situations,
you
here,
domicile
and
as
this
offer
Btit by all means be sure
have the
the leads
manpower
developed by
dent of the firm.
Mr. Brown has
with
Arthur
more
as
cashier.
With Merrill Lynch
ad¬
(Special
to
The Financial
Chronicle)
securities—this is
ness—and
unless you
a
lead
a
personal busi¬
is only a
name
follow it.
DENVER, Colo—Roger D. Fraley is with" Merrill Lynch, Pierce,
Fenner & Beane, First National
Bank Building.
>
IT'S CITY NATIONAL
World-wide connections
Every banking service
are
Experienced officers
pulled five replies
Day and night transit
hunre¬
All
my propseen
are
for the asking
yours
at
Sample of Effective
Co.,
a
-
Miami
located in
residents.
you
An influential directorate
business out
a
CITY NATIONAL BANK & TRUST CO.
Beach,
city where
a
constant influx of
new
KANSAS
of these people
Many
MEMBER
You
A
CITY, MISSOURI
FEDERAL
$230 Million
DEPOSIT
INSURANCE
CORPORATION
New
Florida Resident?
Every
own
year many
people
move
to South Florida. They
stocks and bonds and would like to have
investment
firm
render
If you are a new, or an
to
become
to
them
personal
a
local
service.
offices
old resident, and would like
assist you—
acquainted with
Check below,
Through its
58
and
us
our
willingness
Marine is in
close touch with
sign, and mail this advertisement to
us.
the
I would
like—
thriving
industries of
□
Investment
□
Quotations
□
Information
on
establishing
□
Information
on
the Florida
□
Suggestions for tax free investments.
□
Statistical reports
suggestions for
—
my
generous
income.
Western
list is enclosed.
a
Florida domicile.
New York.
intangible tax.
This
knowledge
and
—
over
list enclosed.
Name
century
Address
a
of
experience
Tel
can
Established 1940
be
1
helpful to
Atwill
NOT
Investment.
you.
Company
and
INC.
Member
THE
Securities
MARINE TRUST COMPANY
OF
605 Lincoln Road,
Miami Beach, Florida
Phone 5-5816
L.
Wright & Co., Inc. for some time
to follow
your
associated
been
vertising. It takes salesmen to sell
Resources
Are
a
informa¬
IN KANSAS CITY
The quantity
interested in
&
are
there is
local securities, and
special
the
or
Arthur
Wright & Co., Inc., 225 South
15th Street, announce the election
of Lloyd B. Brown as Vice-Presi¬
favorable time and place.
Atwill
firm, dealing in municipals,
mutual funds,
service.
you
establishing
done
of
some
laws,
—
L.
you
The five prospects that
Here's A
invest¬
an
investigate
pay
ap-
write
that
that
Advertising
primarily
of
was
on
organizational set-
got
that
Organization
are
members
tion
it might
be fol-
osition, and they could be
market
when you write an advertisement,
If you
as
to
particular tax
PHILADELPHIA, Pa.
residents
new
arriving constantly
you
where
community
a
many
can
can
that pulled over
one
dred.
your
also,
your
once
an
than
this
investments,
other
to
in
are
are
effective advertisement. The leads
other city, where there were
people
interest
of inquiries is no indication of an
the
on
made
resident,
interest in the securities that
can
prospect that answered
"tips"
new
pros¬
can
ing must produce leads
buy investment securiwanted
any
My point is that good advertis-
were
the type of
ties—they
to
it will
leads that
you
you
not
were
information that could be
as
there
you
see
that
so
quiries that they could follow, but
would
that
see
of
services.
information that would be
value
well
located
If
prospects.
have
you
to
go
firm's
good
lowed in this manner,
The sales organi-
more
If
organization
business
bring
profitable sales of Mutual Funds
to give
who
relationships with
the
fied
their homes and places
at
your
of
terms
office.
your
pointments,
a
actual
their desks then
to
follow leads, make telephone
traders,
ing
the
few salesmen
bring people in to
must
for
for income and
tied
you
a
issues,
new
those
of
The following ad was
offer
to
into
Lloyd B. Brawn V.-P.
of Arthur L Wright
veiry high percentage of quali¬
a
even¬
attempt to cul¬
Notice that six offers
of
are
you
large
a
as
If you have only a
inquiries
was
well
as
other firms.
and
established, and who
were
ex-
trad-
upon
for
people
prospects
business
had satisfactory
used
etc., etc.
coming
scanned
the
tivate
different type of investor, than if
made
was
securities
certainly
well
very
advertisement
available
one
ago
developing
on
new
their city,
in
customers than to
Key Your Advertising
series
difficult
who did not have established con¬
By JOHN DUTTON
a
invest¬ the community. This ad has pulled
decided that it
their salesmen to meet
nections
(Second article in
other
and
firm
9?
WESTERN
NEW
YORK
Federal Deposit
Insurance
Corporation
pa
The Commercial and Financial Chronicle
(354)
Continued
from
going up,"
infancy.
hours
speculative
the
shows
table
96
page
in its
be only
fever may
in
analysis, the prospects for business, and as
corollary the investment banking outlook, seem to me
lap of the gods, but in the uncalloused
hands of the Federal Reserve.
A tightening of credit,
which the huge amount
of projected public and private
construction suggests, would put a damper on this im¬
portant factor in our economy.
Such a reversal, or
even
modification, of Federal Reserve policy would
appear to be politically inexpedient. Moreover, once the
urge to speculate in securities has gathered momentum,
even
high interest rates or increased margin require¬
ments might fail to restrain it. The fantastic call money
rate in 1929 is a case in point.
As a wild, and only a wild, guess, I go along with the
overwhelming majority and say that stocks will blithely
soar ever higher, despite the fact that general business,
strongly impelled by politically conceived economic
narcotics, can hardly be expected to improve sufficiently
to justify the discounting of uninterrupted prosperity for
years ahead.
sales
an
right
gold, they consider equities
their capital. The
hoard
to
of refuge for
6,274
Almost
residential
Almost 3,700
380
industrial
and
users
by about the same amount.
creased
lion
than
more
35%
in
the
1940
between
area
agricultural income was lower in the mid-south
1954 than in 1953, due to drouth and acreage
Cotton acreage will be further reduced by
16% in the Memphis area in 1955. Rice acreage will be
in
bacco 90%
of
parity;
present
88%; wheat 821/2%; rice 85%.
that, with normal weather,
corn
prospects
agricultural
income
are
will
be
smaller
some
in
1955
as
with
and intelligent effort
DONALD
in
purchasing
1954, and
Dec.
on
of the dollar
power
31, 1954,
results
stable
same
as
a
earlier.
Some prices have declined, but declines
in prices have been about offset by advances in other
prices. The best indication available
year
this
at
time
show
about
the
same
The population of
creased
about
the U. S. has in¬
one-third
in
the
past
from
caught
the
the
fact
that
have
we
with "back" orders.
up
pretty
generally
onstrated
considerable
Forgotten
selling
revived and
record.
to
installing
telephone in
be tremendous.
made
of
aware
Subscribers
the
ratus.
than
found
was
The horizons
were
low cost of
1930.
in
market is not limited, of course, to these
The nation's demand for electric
power is doubling every 10 years and this means grow¬
ing demand for power generating and distribution appa¬
were
more
home
a
long
probable population of about 190 mil¬
lion
during
duction
people
almost
of
1965, or
by
million
30
next ten years.
to
the
twice
expected
a
increase
an
people
in
the
This increase is equal
population
During the next ten
to
be
number
the
indicate
of
of
years,
large
a
Canada.
there
increase
children
and
is
in
in
the
number of people 65 years and older,
the
W. B. Pollard
labor
force
million
1
ready
per
born
will
increase
year
about
children
as
al¬
become
old enough to
These changes in population will have a marked
work.
effect
business.
upon
that
first
will
quarter.
see
I
believe
even
an
greater
greater number
of
telephones.
people,
As
far
which
in
General
as
turn
re¬
Telephone
We have been building over 1 million homes
per year
for five years.
We may have a temporary dip in the
number of homes
required, but a still larger number
System
is concerned,
centers
to
should be required around
The telephone industry will invest more than $1.5 bil¬
lion for expansion and improvements
1970.
Industry has increased invested capital
^
per
production
worker by about two-thirds since 1939. This
large capi¬
tal
investment
in
efficient
machinery
manufacturing industries in the U. S.
products, and
produced in
put
100%
in
number
same
a
industry has increased 75%
people
efficiency lias increased
duce food
in
fiber
and
During the past 25 years, out¬
agriculture.
of
to
competitive basis with such products
country.
manhour in
per
almost
on
any
enables many
produce better
We
farms
on
have
now
as
the
in
increased
the
1875, but their
can
pro¬
population, and,
1955
1954, but residential building is expected to be
Public building of schools, roads,
churches, etc., will
continue to increase. Government
spending for defense
up.
will
probably be
will still be
production
5,400,000
a
very
for
past
13
nine million
whether
little lower, but defense expenditures
large item.
1955
vary
produced
cars
Mortgage debt
in the
a
on
in
years,
Estimates
a
little
less
1954
to
about
400,000
has
may
during which time
temporarily
than
the
more.
increased about 380%
homes, and this does raise
we
automobile
on
from
residences
be
built
we
some
question
as
building.
to
This
of large numbers of residences
may place some
pressure
on
apartments.
since
1940,
residences, rental residences
Consumer
and
this
debt
has
suggests
increased
that
each
consumer credit should be scrutinized
permanency
already
The
of
employment
and
and
about
350%
aplication
carefully
whom
some
the
as
for
to the
applicant
owes.
mid-south
populated
of
above
the
record
investment such
has
made
tremendous
electric power production and utilization.
from
metropolitan
has helped to
areas
amount
spent in
1954.
Long
products manufactured has
all
need
industry extremely conscious
for
costs.
the
At
Regulation of telephone rates by Public Service Com¬
has, I believe, assumed a more business-like
telephone industry based
upon
expe¬
riences since the close of World War II.
Telephone com¬
panies will have to ask for further repricing of telephone
during 1955. It is my opinion that with better
same
information
We
think
that
can
communities
served
well
as
the
to
MILTON
President,
It
is my
The
exciting technical development
customer
toll
is
the further expansion
opinion that the year 1955 will be another
good one for the entertainment business.
Although no one has the prescience to anticipate all
contingencies, it seems to me that the optimism re¬
flected by the record and motion pic¬
very
The
strides
in
following
rather
dialing.
the
that
The
we
are
with
planning
customer
better
of
communication
by
practices, by radio, by television. Our in¬
dustry, I believe, has been alert to changes and is, ready
to furnish the best telephone service to all who want it
at the most economical cost.
These
ing.
are
My
would indeed
fidence in the
de
be
for
the
telephone
dim if I did
industry
not have
unbounded
our
people.
promising to
1955
con¬
depth of management and in the "esprit
corps" of the industry's entire personnel.
upon
in
our
Perhaps
success
that
is
or
In the tele¬
failure depends
why
1955
looks
so
great
We
new
Statistics show
children
reached
the
new
benefits
audience.
entertainment
in¬
quite mindful of the fact
it is the quality of the enter¬
are
tainment
that
matters.
As
long
as
quality is maintained, the motion pic¬
ture business will be able to enjoy
R.
Milton
The
Rackmil
its
present prosperous level.
The
same applies to the record business.
public simply has to have entertainment "regardless
of the form in which it is presented.
Technological ad¬
vances in
both the record and motion picture business
important factors but the public is more stimulated
by the inherent nature of the entertainment.
are
items of statistics, of money and of engineer¬
outlook
facts
year
of
Leaders
development does not by
toll dialing.
Constantly
methods
a
entertainment business
dustries
that
upon
thinking.
in 1954, with this
rising to four million in 1955.
12th
substantially by the
dialing is already a reality on an experimental basis.
equipment is installed each year, the day draws
closer when a businessman from his
office, or a house¬
wife from her home, can dial
directly to another sub¬
scriber in another city.
end
based
million
3.5
number
im¬
of nationwide
As more
means
is
hopeful
audience developing.
In several communities customer
The excitement of telephone
than
fortunate in having
are
toll
any
business
ture
telephone
on
Records Inc.
Universal Pictures Co., Inc.
their
most
R. RACKMIL
Decca
President,
companies.
mediate horizon
challenges
in 1955.
promptly and with benefit to
as
and American industry
Westinghouse
and will successfully meet these
and
more
has re-
efforts.
emphasized the necessity of vigorous sales
preparation of rate cases by telephone
companies, the regulatory commissions will be able to
decide such requests
competition
rugged
time,
of the continual
controlling
carefully
and
waste
eliminating
range
missions
skillfully meet
little change in prices of
made
this is clear evidence of the telephone
industry's confidence in the American economy.
attitude toward the
benefits for mankind.
potential of the future will be real¬
The pattern of rising costs
generally
operating companies.
our
It is an exciting
competition.
the test of keen
and
We
propulsion and
machines of
the
depends, of course, on our ability to
ized
as
phone business much of
area
movement
conventional
a
over
building
older
densely
growth
of
many
during 1955, which
is
the
addition, substantial surpluses.
Commercial building is expected to be lower in
than in
less
the
and
service
to the extent that they
for
and
about
stimulate
the
revolution.
in which the techniques of pro¬
era
an
Whether the full
our aggressive sales
campaigns. PerDonald c. Power
haps the best prospect for the con¬
tinued growth of the telephone
industry lies in Amer¬
ica's ever-growing population. More people mean more
families and homes, and more homes mean more tele¬
phones. Businesses and services, too, must expand to
more
The problem is to keep
prospect and one promising great
phones, color telephones and wider
of long distance as we continue
a
industries.
will be remarkably improved.
power
use
serve
moving into
are
increase in the sale of extension tele¬
quires
.
the
1955
unlimited for the atomic power and
with the needs of a new industrial
up
Recent studies
years.
are
automatic machinery
distance calling and sales of long dis¬
tance climbed steadily after falling
25
off some 5%.
expectations that some
428,000,000 electrical appliances are expected to be built
in the next five years—an increase of 27% over the past
five record breaking years.
For many of these appli¬
ances, such
as the electric dishwasher, the market
scarcely has been scratched. Fifty-four different home
appliances now are on the market compared with only
support of this optimism are
products for the home.
vigor.
philosophies
Equally significant is our expectation of an increase
1955 of approximately 10% over 1954 when
in orders in
The growing
methods introduced.
new
The market for
sales
leads us to ex¬
billed will approach or equal the
1955 sales
that
19
Dur¬
ing 1954 the telephone industry dem¬
one
situation for 1955.
of
ing the last few months, however, now
In
telephone industry, in my opinion,
during 1955. Some leveling-off in the
demand for primary telephones is to be
expected; this
very
was
about the
was
for
than $1,600,000,000
products shipped, setting a new all-time com¬
pany sales record for the fifth consecutive year.
A year
ago it appeared that 1955 would see a noticeable decline
in the sales billed curve. The upswing in business dur¬
worth
orders, excluding defense business, were
POWER
will again be good
President, National Bank of Commerce, '
Memphis, Tenn.
The
C.
President, General Telephone Corporation
POLLARD
mated 2%.
Competition will likely be keen in most lines of busi¬
in 1955, but energy,
efficiency
will continue to reap rewards.
Product will
Westinghouse, 1954 saw more
For
pect
1954.
ness
Business
B.
Price
A.
1954
buyers.
W.
Gwilym
reduced 24.7% nationally if producers approve market¬
ing quotas, and above 30% in the Memphis area.
Price supports for 1955 for commodities grown in this
area
will be about as follows: Cotton, peanuts and to¬
employment and Gross National
move upward an esti¬
both
restrictions.
as
curities
During 1954 an average of 61 mil¬
people were employed and the
nation's Gross National Product was
down but 2% from the
1953 peak.
The outlook for 1955 indicates that
and
The
area
years of this
certain to be surpassed
first five
the
during
within the next two years.
1950.
on the market is, of course, the same.
low yields and high prices tor seasoned se¬
persist, new issues should find plenty of eager
So long
peaks of production, consumption and
employment .which were reached
decade seem
upward pressure
^
Beyond the new year, the future
even
brighter.
The all-time
looks
in this area are
Textile mill products;
developed
industries
apparel and finished prod¬
ucts; lumber and wood products; primary metal indus¬
tries; food and kindred products; fabricated metal prod¬
ucts; leather and leather products; furniture; stone, clay
and glass products.
Manufacturing employment has in¬
undisciplined inflation is inevitable, and, denied the
inalienable
the "least worst" haven
5,107
2,476
320
to
Corp.
increasing demand for electrical products
—ranging from the large machines and equipment for
the generation and transmission of electrical power to
the increasing number of "magic servants" performing
myriad tasks in the American home
—promises an excellent year for the
electrical industry in 1955.
The steadily
chemicals and allied products;
compared
others who think
1,700
the following in the order named:
of
are
Almost
Almost
both
principal
The
high level prosperity, there
600%
3,746
1,605
__
have increased
The
Almost
14,467
222
.
PRICE
A.
GWILYM
1955
Thursday, January 20,
President, Westinghouse Electric
2,035
Missouri
_
.
Increase
1953
2,453
.
_
Louisiana
Power
millions of kilowatt
in
1953:
Mississippi
While many stock buyers commit funds into equities
because they have an abiding faith in the permanence
our
in
67
__
Arkansas
a
to be not in the
and
1940
Tennessee
public, with the aid of cheap long term credit,
will buy all the automobiles that are being produced
and new houses that are being constructed, there would
seem to be a reasonably solid foundation for a continua¬
tion of the high level prosperity we are now enjoying.
If the
In the final
production
power
1940
State—
.
.
With
the
American
buying
public having more
more
time for recreation, all branches of
ment
and
business will benefit accordingly.
.
The
motion
picture
industry
has substantially bene¬
fited by the increase in foreign income.
are
in
the entertain¬
All indications
that this upserge in the world market
will continue
1955, particularly in view of the fact that American
films axe still the number one choice.
Number 5396
Volume 181
.
The Commercial and Financial Chronicle
..
F. RANDOLPH
FRANCIS
RAE
ROBERT
bringing with it breadth of public interest in the stock
market not in evidence for a good many years. Thus it
may be well to point out at this time that regardless of
how high the swell of confidence runs, there will be no
change in one basic characteristic of common stocks—
ft
•
Chairman of the Board & President,
President, The Dominion Bank, Toronto, Canada
Tri-Continental Corporation
businessmen, like their counterparts in the
Canadian
United
In
moderately optimistic about the eco¬
As you might expect, there are
some differences in the position
of the two economies.
Canada, like
the United States, had in 1954 the
second best year in its history. Gross States,
are
nomic outlook for
National
2%
1955.
Product
the
from
by
1953
was
level
a
business
of
1955
at'least
than
in
for
businessmen
Canadian
Most
tion, the
in
it
good, if not better,
Thus, the outlook is
-
not
Canadian
than
the
did
Another
S.
U.
factor
liquidation has not
neighbor to the South.
been
For Canadian
its
banks, 1954
well
may
as
be
another
by
the
as
Some
industry
displayed
Francis
dustrial
Randolph
banks.
level.
sharp changes in commodity prices over-all, but rather
Maintenance of
pervasive feeling of confidence was
a
The recession
1954.
in
investors
and
men
Government
prof¬
sM
also
prime factor in business activity and security markets
a
our
Coupled with this prospect of op¬
e
portunities
to
profitably
employ
funds, however, comes the sobering
thought that during recent years the
Frank C. Rathje
debt structure in our economy has
already been substantially expanded, With net public
and private debt standing at approximately $600 billion,
total corporate debt double its prewar level and mort¬
gage debt on small residential units three to four times
the prewar level, we begin to wonder how heavily our
economy today is leaning on the national income of the
downward drift which probably contributed to business
abroad
not
only
well heralded
was
prepared
were
created
business¬
The Federal
atmosphere
favorable
a
brought the intended results.
economy
and
for it.
stabilizing the
Depression
not
significant change in the Canadian banking field
last year was the entry of the chartered banks into the
mortgage lending field.
In their first nine months of
making loans to assist new residential construction under
The National Housing Act, the banks advanced $55 mil¬
If
psychology, improving prospects for peace and an ample
near
or
record level.
a
Since
this
ity
field,
security prices
amalgamation
now
pending is
and The Bank
has
proposal
banks.
both
of
been
Only
will
It
Bank.
than
billion
and
well
have
is
by
assets
as
in
across
As
as
pressure on
we
Optimism
starts.
in
is
expansion
there
but
period,
is
than is
nothing
been
as
in
York and London, England.
income to
SNYDER,
N.
Y.
This, it
seems
be
offices
44
that
derived from
1955
will
from
of E.
G. Brouse & Co.
H. H.
M.
M.
at
need
avoid
past
good prospects no doubt have
also
desire
or
for
operating
business
it
seems
the
excesses
have
always
in
to
us,
of
require the ablest,
Federal
resulted
in
severe
LAKE
Securities
M-G-M
been
CITY,
AND TRUST COMPANY
offices
formed
Utah
Statement
Company
has
the
in
Of Condition December 31, 1954
—
offices
with
LIABILITIES
RESOURCES
Utah Savings & Trust Building to
engage
in
securities
a
Richard Moench is a
business.
Cash
and
Due from
Bank
.
.
Capital Funds:
$ 92,707,084.32
Capital
principal of
U.
S. Government Securities
Mickle & Co. Formed
HOUSTON, Tex.
Loans
and
Mickle, Jr. has formed
41,247,406.23
and Other Securities
Discounts
....
..
.
.
.
•
.
,
.
.
.
,
Receivable
building to conduct
a
Reserves
Banking
Houses
.
securi¬
Other
Assets
3,427,140.67
<,
.
2,412,193.64
.......,
.
1,239,796.77
Income
.
.
.
.
695,717.05
...
Mickle &
Company with offices in the elec¬
9,510,000.00
22,447,140.67
Unearned
Income
$
9,510,000.00
Undivided Profits
,
128,496,232.76
John C.
—
Accrued
tric
,
.
Surplus
State, Municipal
'
Stock
81,142,217.63
.
firm.
the
......
/
4,058,348.99
244,060.28
ties business.
Other
Liabilities
Dividend
Payable January 1955
.
,
,
.
,
Deposits
.
285,300.00
321,643,599.51
$348,591,067.26
$348,591,067.26
W. H. Gaskins Opens
(Special
The
to
Financial
Chronicle)
DENVER, Colo.—W. H. Gaskins
is
engaging
ness
from
in
a
offices
securities
in
the
busi¬
Railway
Exchange Building.
MEMBER
to
in
the
of
re¬
page
100
which
problems
Continued
Confidence seemingly is rising and
City.
SALT
non-
policies
trenchment and debt liquidation.
Street, New York
M-G-M Securities Co.
credit
the credit structure
THE CONNECTICUT BANK
from
earnings
important forces behind the post-election advance
security prices.
Higginson is engaging in
129 East 36th
author¬
in the profession of banking
Higginson Opens
securities
a
will be the
this year by
unduly influenced in our credit
name
at
be
too-liberal extension of credit. The year
administration
political
the
a
we
Har-
Drive, under the firm
business
us,
in the banking profession and by the credit
a
wood
to
answered
Edward G.
securities
—
engaging in
cannot
upswing
economic
E. G. Brouse Co. Formed
Brouse is
we
buy today.
in the mortgage field, exces¬
or
question to
important
policies by the
buoyancy of this improvement.
Business recovery and
present
our
and finance will not be
usual in an
limiting
should
It is to be hoped
recovery,
high level from which this
improvement
much
of outright infla¬
liquidation,
ities in Washington.
This suggests that our economy may be more
potential
longer borrow next year's
most
men
confidence
to escape the consequences
difficult period of debt
sive credit extensions?
business recovery
is widespread,
a
underpinned by liberal,
institutions
developing business
view* the
or
How
their funds profitably em¬
1955 gets under way,
we are
much
major influences in the 1954 advance;,
year
progress,
limited
is
$1.1
Canada,
with sustained
coveries Is the undoubtedly
share¬
of
in
one
The Torontoexcess
were
Insofar
tion
perhaps the most conspicuous difference from past re¬
The
approval
time, continued peace in
concerned, the absence of depression
are
money
the
rising.
amalgamation
of Toronto.
approved
branches
450
offices in New
more
an
Government
amalgamated bank will be known
as
As
make the amalgamation effective.
required in order to
Dominion
ployed,
•
same
other investors to keep
and
in
"
Bank
Dominon
holders
supply of
expansion in their mortgage lending activ¬
an
major development
The
The
gained some experience
now
be expected.
can
A
.
of
they have
At the
prospect.
troubled world seemed increasingly likely.
a
A
lion.
in
oecade.
next
was
Demand for com¬
increased
and the banks generally closed their fiscal year with
record assets. Another satisfactory year is in prospect.
being at
mercial bank loans eased slightly, but deposits
to
maintain
public con¬
There were no
equilibrium. Further recovery in business
helped to maintain business here.
activity
added
opportunities for banks
to
earning assets at a high
ample
the
and
in the
existing de¬
of mortgage cred¬
lending
This,
it, consumer instalment credit and
municipal financing, should provide
industries,
continued avail¬
tinued to buy goods at a favorable rate.
a
somewhat
mands in the way
construction
some
for business but its action directed toward
was a prosperous year,
F.
conditions. Consumers'
stability
higher
activity and
should result in satis¬
and
employment
and
easy money
great
by
factory levels of commercial and in¬
of high-level
industry,
recent
the
following
inventory replacement
inventory reduction
of
levels of total industrial
were
year
automobile
that
in
great as
influences
keeping with brighter prospects for economic activ¬
period
in¬
restricting
were
These
incomes
One reason for this is that
experienced a smaller decline
inventory
In
liquidated, and
in some areas
ability of funds under
U. S. at the turn
economy
RATHJE
C.
ity in general during the year 1955, the outlook in bank¬
ing and finance also appers promising.
activity, better-than-expected output in
such
apparent in Canada.
so
the
agriculture
moderated
business confi¬
of the year is
and
were
conditions
fluences.
products.
in business activity
inventories
of
business in the U. S. may well
bring a reversal of the 1954 downward trend in exports
to the U. S.
Then, again, the more prosperous condi¬
tions prevailing in the United Kingdom and Western
Europe should mean an enlarged market for Canadian
evident in the
and
1953
most severely affected,
area
depressed
and the upturn in
upturn
late
of
about equal to the recession
was
as
earlier postRobert Rae
war years.
As is well known, the Canadian economy is
much more dependent on export trade than is that of the
U. S. and the trend of exports may well be the key
factor in the 1955 level of business activity.
Here, there
appears to be reasonable ground for confidence.
The
outlook for wheat exports is more favorable than a year
so
FRANK
President, Chicago City Bank & Trust Co., Chicago, 111.
of
1949. Reduced Federal expenditures,
lower production in many industries
stability, rather than for resump¬
of the
high rate of economic
The
recession
The
tion
dence
necessarily
not
early 1954, though well-defined, was
relatively mild. In terms of produc¬
growth experienced in
ago
is
activity
deciding factor in the course of
security prices.
as
1954.
reminder
a
business
look
activity
surprising
the
industries.
for
prices will continue to fluctuate both up and down.
Perhaps now more than at any time in recent years,
sound investment principles and objectives should be
observed and securities purchased should
be selected
with care and watched over continuously.
The prudent
investor will recognize these fagts.
to investors it pro¬
that the trend of
our economy;
vided
of
though the pattern of activity
by no means even as between
year,
ever
pessimism in vogue at the outset, it was a
year. To businessmen it was notable
for the fundamental strength shown
about
down
was
which was the most prosperous year the
experienced. For those who shared the
with 1953,
even
level, largely as
poor grain
crops.
Na¬
tional output, exclusive of grain, was
about the same as in the previous
result
a
retrospect, 1954 was a good business year compared
nation has
similarities and
many
9S
(355)
FEDERAL
RESERVE SYSTEM
MEMBER
FEDERAL
DEPOSIT
INSURANCE
CORPORATION
on
100
(356)
The Commercial and Financial Chronicle
Continued
from
President, Reynolds Metals Company
reaching
Civilian aluminum markets are
highs and
growing
are
There
all-time
new
kets
the industry.
period.
same
that
in
S.
Reynolds, Jr.
expansion
the
under
primary
of
Korean
Company
capacity it
emergency
and
its
is
attention
being centered
now
facilities will
plate
new
The
aluminum
in
be
industry's
funds
output
not
The
rates.
windows,
wall
rustproof aluminum
nolds
Va.,
Metals
duct.
and
year
President,
Valley,
The
•
increase
pounds
as
aluminum
of
use
during
the
construction
The emphasis
has
was
as
used
and
35
in
1954.
Its
to
is
use
a
stability
areas
to
control
his
aging
as
The
of color printed foil labels and
use
silent salesmen
on
supermarket shelves is
foil is being consumed
in
cooking, wrapping and
more
a
purposes.
1955 outlook
is
bright for the aluminum industry
the ample supply available to meet the
grow¬
in view of
ing market demand and the continued upturn
expected
in general business conditions.
President,
The
A.
East
RICHARDS
New
York
on
Bank,
1954, and
si:ill build sufficient surpluses.
Last year savings banks nationwide
showed deposit
gains of $1.9 billion—just under $2 billion. About half
was
banks.
attributable to New York State savings
„
improvement in general business conditions-
ing the second half
of last year saw The East New
its largest deposit gains.
and
dur¬
York
its best months.
December
were
November
than
more
a
total
of
immediate future
—
Inventories have
and
been
very
and
amount
gieat
which
it
of
liquidated
earnings,
confidence
believes
has
in
a
the
a
great
and
a
fund
powerful
will
in
likely for the entire
is being increased to meet the demands of
record
level
will
remain
cient
to
means
ideas
effort
every
serve
its
be
located
will
It
field
and
million,
'
>
believe that to
We
have
to
good
dependent upon business and agriculture
prosper banks should prosper.
There
has been disappointment among banks generally
that
loans have not risen more during the latter part of 1954
Banking is
when
that
the
production
public with
of
savings
government
means
of
so
they
and the loan trend may
is
or
modern
posits should increase before the end of the year. All in
all, it is my opinion that, if we have continuing favor¬
able
conditions, business, agriculture and banking
crop
in this
should enjoy a good year in 1955.
area
It
has
generating stations
at
Eddystone,
I
optimistic about "the future'and particularly
immediately ahead. In recent weeks I
with many people from alL parts of the
am
the year
talked
have
I've found they share the view that 1955
should be a good year. Competition
'-Will be keen for the customer's dol-.
/•lar,. but competition is
^
Predictions
and
are
always are hazardous
especially so when develop-
have so profound
>ari effect on our domestic economy,
Nevertheless, I think most business¬
men will not quarrel with this forecast: American industry will produce
more goods than last year, more peo.ple will be employed, business conditions will be generally better, and
G. Riter, 3rd
the
average
employee
will
have
ments abroad
./
effi¬
inaugurated
It will
Henry
.which
will
more
In
*
open
a
new
of electric
per
~
can
y
so
capacity.
jnch apd
and electronic
sta¬
will
be
steam pressure
a
a
new
It
temperature
pressure
of
and tem¬
far planned by the electric utility industry.
This single unit will add more than
10% to the generat¬
of Philadelphia Electric.
Its fuel
require¬
expected to be about 6% less than in the most
existing
power
gas,
and
steam
from
reaching
each year, and with even further growth
the coming decade,
the sale of
new
records
anticipated in
it is clear why the Company holds
optimistic view for
the
money
which
manufacturing
to spend.
is
a
diversified electric
company
selling
a
variety
products to many
There
are
many
indicators which point toward
a
con¬
tinued expansion of our economy. Business spending for
new or more efficient plants, equipment and
machinery
at
is
and
an
an
exceptionally high level. Consumer spending
high. People are confident of the future,
all-time
this in itself helps to
We
7,000
a
assure
a
prosperous economy.
growing nation—growing at the rate of
day, 2M> million a year. The market for goods
are
a
and
services
for
new
thus
is
enterprises
increasing, affording opportunities
to
be
launched
and
-
established
*
Our
revenues
services
company,
businesses to expand.
station.
Philadelphia Electric
own
segments of American industry, I
look forward to 1955 being a better year than 1954.
*
kilowatts
square
my
is at
an
toward better satisfying people's
f'-.M
V.VY
..-'/.V
omy
■■swants.
Last year the
far designed.
1,150 degrees Fahrenheit, the highest
With
vitalizing 5
a
"SYforce and will help to steer our econ-
Pa., just below Philadelphia.
advancement
be of 275,000
5,000 pounds
electric,
3rd
Manufacturers, and
President, Thomas A. Edison, Inc., West Orange, N. J.
of the most effi¬
one
so
operated in the "super-critical" 2one at
efficient
G. RITER,
HENRY
President, National Association of
com¬
and
turbine-generator, to be housed in this
are
continue unfavorable during the
early months of the new year. It would be our expecta¬
tion that loans would rise later in the year with interest
rates at banks to continue about as they are. Bank de¬
of
ments
the
'
'
perature
area,
in 1955.
-
spent
secure
customers.
power.
The
ouru
expect the farmers in this area
crops, we may
prosper
bringing;the
greater economy in the production
tion, will
have prosperity in
Farm conditions at this time
of the year are better than they were a year ago. There
is more moisture in the subsoil and we anticipate that
most of the decline in farm prices is behind us.
If we
slack¬
a
.
to the electric industry.
new
introduce
for
and
farmer must be prosperous.
in this section.
power
$304
to
shopping
to the economy
Throughout its postwar expansion, Philadelphia Elec¬
has made
of
production
The
in northeastern Minnesota will be plus factors
in our section of the country.
program
mitted to be spent here for the period 1946
through 1955.
tric
development
important.
million to date.
the horizon to indicate
$760,000,000!
the
and
marketing of oil in the Williston Basin and the taconite
average of $1 mil¬
This has been going
nearly $3 billion has been
ing capacity
Every sign indicates favorable economic conditions
a
high
very
centers
;
of
Savings Bank make
year.
com¬
as
centers—less in the small communi¬
The building of roads and schools will continue at
Philadelphia Electric shares the bright outlook for all'
industry in the Valley. Actually, considering only large
industrial construction projects, close to the Delaware
River, involving a capital outlay of $5 million or more,
cient electric
Mutual savings banks, during 1955, I believe will con¬
tinue to experience large
deposit gains and invest them
safely and well enough to pay their depositors interest
dividends at least equivalent to that
paid in
the
operations
electric
the
totals $460
some
,
The
con¬
a
year
new
In the construc¬
homes to be built
in the old—probably
as many
in the larger
ties.
a
the
in
area
our
few months.
a
expect
an
facilities.
War II and
nothing
Brooklyn, N. Y.
sum
the
in
of
Company made plans to construct
Savings
1955
better level within
a
country ahd
many
EDWARD
of this
expansion
new
expenditure of
total to
pack-v
unprecedented quantities. for
multitude of other household
expect in
be quite modest. Manufacturing and mining in our
which suffered some in the past year should operate
may
about
tional
record market dur-
a
widespread among food packing and beverage bottling
companies than ever before. In the home too, aluminum
The
reflected
is
ening in the demand for electric
market.
packaging has also enjoyed
country—the
business generally
of improvement which we may
measure
the present growth continuing, estimates call for an addi¬
and
the
of
again at
were
The Company's construction program has been keyed to
the growth of the area it serves, which is the very heart
of Delaware Valley.
During the next five years, with
1955 is expected to bring further expansion of
acre
'ing 1954.
week for
There is still
higher
output better.
The
year
Foil
and
World
since
on
much
a
part
our
District—our
the beginning of 1954 produced a
and our farm marketings
a very high level.
Because our
business here in 1954 held close to the level of 1953, the
home-owning
a
the
of
lion each
being utilized all over the
of water supply for cash
per
this
seaport;
market;
area
region's growth is found in the expan¬
Philadelphia Electric has undergone and is
continuing to experience. To meet ever-increasing de¬
or
yield
%
the
which
sion
high
new
longer confined to arid
no
Instead it is
provide
reached
enabling the farmer to achieve
crops,
In addition,
here.
mands, the Company is investing
to dry seasons.
country
industrial
of
measure
successfully and economically in Spain for
pipe sales
centers.
which serves it. Without plenty
of power the great optimism which
pervades this section could not have
caught the imagination' and vision
commercial
leaders.
A
significant
Rinciiffe
C.
R.
automobile, or more than four times
right after World War II. Renewed
irrigation
metropolitan
pany
to
years.
Aluminum
most
fast-growing
a
area
being shown by railroads in lightweight pas¬
trains, such as the aluminum Talgo unit which
has operated
many
ex¬
construction
industry in
be again an important factor
of readjustment here,
1954
in
Company
force; excellent rail and
facilities; a modern inter¬
national
airport;
choice industrial
sites; available raw materials, and
adequate electric power geared to
present and future demands. These
many advantages explain why Dela¬
ware Valley is a land of opportunity.
The growth and prosperity of any
interest is
senger
Electric
highway
air
about
con¬
We may
prior to
had
measure
in
more
centrated
for
averaging
high level.
a
prices of livestock and agricultural products in earlier
years
tion industry, we may
being made in Delaware
developed industrially, with
operate
and
on
preference
1955.
half of
first
expenditures will
situation accounted
in
Nearly 90% of all basic industries found in this country
buildings.
year,
good
as
the
good at
be
1954 than in many sections. The farm
in part for this—the severe drop in
held up better in
working
transportation continued
recent
per passenger
much
in
be
In
Federal Reserve
Ninth
the
should
area
an
area
highly
diversification than
greater
New
in office
use
an
is
news
being
interior
banks should
Philadelphia
planned, incorporating the latest
developments in aluminum design and finishes for ex¬
terior and
been
has
models at
new
the economy of the country.
in
in
a
RINCLIFFE
G.
industrial
Great
headquarters for Rey¬
executive offices in Richmond,
Company
now
are
decline
following
be
stores.
at
operation in 1955.
in making record
conditioning has also brought increased
government has
R.
recognition of aluminum's maintenancefree, light-to-handle qualities, plus its permanence, has
for
will
retail
the
1955 to
further
on
Widespread
use
pect
money
pliances, electrical equipment and packaging.
its
there
during
at
the
business, which
year,
Government
tinue
good
bring
for
with
the
for
should
factors
1955.
brisk
least
policy and has been encouraging the de¬
money
for
that
expected
earnings of savings
1955 as they were in 1954.
success
architectural applications.
mortgages
probable
This
basic
in
results
of
end
opportunity to
to help finance
good or possibly
expect that this will be.
automobile
been
J. F. Ringland
The
shipments to civilian markets during 1954, in the face of
soft markets which had developed throughout the
economy in the second half of 1953, reflects its basic
strength.
With aluminum in adequate supply through¬
out 1954, it was possible to make further progress in
such major markets as construction, transportation, ap¬
varied
in
find
the
good
units will be started
will
of
The
that
situation, but at this point it does not appear that they
will be too quick to change the prevailing policies in
view of the experience with "tight money" in 1953.
the
increased
banks
estimated
been
1.6 million
savings
development of the company's fabricating facilities. Rod
capacity has been increased during the past
has
It
may
one
by easy mortgage terms, low downpayments and longer maturities.
Undoubtedly the ap¬
propriate Federal agencies will keep close watch on the
completed
undertaken
had
program
is
easy
will reach a new high, about 20% above its
record output of 1953. Full capacity output of 414,500 tons
is expected in 1955.
With the new producing facilities
completed,
active.
we
business
on
building industry should be at
was
during the previous calendar
it
as
abundant
mand
for the year
j*
and
the
more
The
interest
tons.
the
not
wage
as
This makes
high level of personal expenditures
a
activity.
It
aluminum
production is expected to go still higher, to 1.5 million
Metals
if
invest
R.
Reynolds
active
as
1955.
this
have
by the domestic producers.
This year, with a fourth producer
commencing operations, domestic
primary
1954,
should be at least
better in 1955.
guaranteed annual
a
between 1.2 million and
set
During
for
sign,
every
year,
new
records
that, despite some
unemployment, disposable personal income has been at
the highest level in our history and
such decline.
any
their demand
least
aluminum production is
setting a new record with an
expected output of 1,450,000 tons for
1954, 16% higher than in 1953. This
Primary
also
been
upon
By
stockpiles.
production
able factors in the business picture is
The
year.
RINGLAND
F.
In my opinion, 1955 should be a good year for business
—moderately better than in 1954. One of the most favor¬
predictions that increased
result in a slight decline in
some
spending
during the
•
President, Northwestern National Bank of Minneapolis
the
expiration of their present contracts in April, a strike
might ensue. We believe that any such condition will be
avoided by agreement arrived at over the table.
In addi¬
is the third successive year
been
ensuing
in
tion, substantial tonnages of primary
aluminum
went
into
Government
primary
JOSEPH
large
and
discordant element in the general economic
picture is the possibility of labor strife during the second
half of the year.
Should the automobile workers persist
higher than they were at
the
over
economic
spending
The only
the beginning of the year, while the
general business index shows a 5%
rise
have
will
doubt
Shipments of aluminum mill prod¬
ucts
towards the end of 1954 are
about 23%
nation's
the
defense
experience of
The East New York Savings Bank, among others, during
the previous stages of the upswing would seem to throw
1955,
In
markets.
in
turn
of
savings
regular aluminum mar¬
will be still larger and should set new records for
industrial
adverse
consumer
rapidly than most major
more
any
stabilization
A
public works program are among the other factors point¬
ing to a happy and prosperous economic year.
REYNOLDS, Jr.
S.
It.
preventing
future.
99
page
1955
Thursday, January 20,
...
future
of
Delaware
Valley.
government has stabilized the dollar and has
sought to create conditions which would favor business
expansion,
recognizing, that high employment,
good
rising living standards for the whole population all depend on ever-increasing business and indus¬
wages and
trial growth.
There are, of course, certain forces and trends
which
■»
Volume 181
act
as
Number 5396
brake
a
taxes—are
.
The Commercial and Financial Chronicle
.
the economy.
on
one
.
such force.
is coming
political expediency will call for a system of tax
rates
which clearly
encourages,
instead of hobbling,
business expansion. The old "soak the rich" approach to
tax levying is losing its appeal as more and more people
become aware that too high tax rates produce very little
for the
revenue
otherwise
government and
would
do take
money
which
goods-producing, job-making
into
go
enterprises.
earliest
The
possible
roll-back
corporation income and of the
dividual income would be
and to the creation of the
a
of
52%
the
rate
on
higher rates on inrstrong stimulant to business
even
nearly 1,000,000 new jobs each year
to assure employment opportunities
to our growing
population. It takes a $12,000 investment, on the aver¬
age, to create a new job. Simple arithmetic shows we
will need a $12,000,000,000 investment each year, over
and
above the
funds necessary to
replace worn-out
buildings and equipment, if we provide the number of
jobs needed to maintain our high employment.
lessening of the tax drag would
business and helf)
perhaps the
best
very
HON.
U.
to make 1955
one
of the best years—
nation
year—our
EDITH
greatly stimulate
NOURSE
early indicative indices,
best in American
Heavy industry,
production, airplane con¬
struction, railroad equipment, phar¬
maceuticals and specialty manufac¬
to promise
1955.
;
In
all
commercial
and
of
volume of last year.
the
reciprocal basis.
mal
nations
the trade
of
on
a
agree¬
trade and trade by reci¬
America
high
a
standard
living has
of
Everyone associated with
been
de¬
industrial proc¬
our
including labor of all types, enjoys a quality of
living and freedom unequaled anywhere in the world.
esses,
This
has
resulted
American
of
larger
of
and
a
combination
cooperation
share
tions
maintain
to
the
of
tional trade
a
world.
prohibitive
to
the
Likewise, American industry
business welcome among the na¬
In view of this fact, the interna¬
negotiations based
upon reciprocal consid¬
erations and schedules must be not only
very carefully
decided but must be scrupulously executed.
It is easy
to
recommend
a
course
of
course
of
action
but
quite another
economic effects such
involved
but
very
detrimental
to
the
a
detrimental effect upon
the
the economic
It
is
well
quality of life and living we have tried
develop in America, it has been an unwritten policy
Government
to
his State of the
protect and
constantly improve
in
mind
industry in¬
marked
a
deprecia¬
community.
that
increased
business
eral
economic
conditions
industry is located.
different
national
of
the
in
country
which
and operational methods.
Because of these fundamental
industrial differences and relationships it does not neces¬
sarily follow that the standard of living in a certain
foreign country may be improved by an increase in
the volume of business in the American market.
on
the part of the American Government
Inten¬
tion
the
prove
general
economic
level
in
these
because
Trade
a
not
of
always
and
laws
negotiation, therefore, based upon reciprocity,
serious undertaking.
Unless very carefully
injury could result in the depreciation of the
very
executed
general economic level and standard of
ica.
This we certainly do not approve
tainly
do
not
want
to
take
place.
living in Amer¬
of and
It
is
we
due
necessity of balance of the economic elements
that
in
whether
must
negotiated
any
on
be
multi-lateral
a
taken.
legislation
for
Agreements
trade
or
Because
a
Act
of
as
.
.
.
three-year extension of the Trade
providing for executive authority to
tariff reductions with foreign nations on a
reciprocal basis represents most important legislation for
the
nation
Another
as
reduction in
are
two
whole
a
important
for
program
this
session
Armed
our
this
in
session
consideration
of
Congress
Forces.
the
of
in
Congress.
the
is
In this
legislative
the proposed
proposal, there
serious considerations.
very
In view of the cold
and the great
war
with the Communist nations
responsibility to the Free World
United
States of
Forces
at
tional
this
defense,
national
America,
time
must
reduction in
any
be
our
examined,
not
from
upon
military obligations, and
the payment
we
or
permanently injured.
It does not
seem
right for
our
Government to enter into any agreement with any other
nation which might improve industrial profits in that
of their 67th consecutive dividend
of January 1,1955.
•
During 1954, growth continued both in
number of franchised
■
440 franchised
bottling plants.
consumer
..
,-.,i
.
sales and in the
-
Royal Crown Cola bottling operations have plans
for expanding their markets in 1955. These plants are located in all
48 states,
Puerto Rico, Cuba, Nassau, Honolulu, Antwerp, Belgium,
Republic of Mexico, and the Republic of Panama. During the
1955 there will be
a
without the United States.
year
further expansion of markets both within and
'
I
NEHI
of
the
Armed
our
our
our
the
na¬
inter¬
respect.
Although I cannot speak for them, I know the Mem¬
of Congress are
completely opposed to war as a
honorable
of the high type of living
enjoy in America should be interrupted or lowered
progress
the most complete line of nationally distributed soft
.announce
the
involved
negotiate
tiation the constant
Corporation, makers of Royal Crown Cola, Nehi and Par-T-Pak
drinks
cer¬
to
agreement, regardless of
reciprocal basis, great care
this
fact, the requested
national
troversy.
munist
exist
at
policy for the settlement of international
Because of the impossibility of making
agreement
Russia
this
and
with
the
Communist
China
or
CORPORATION
Columbus, Georgia
c
con¬
any
Com¬
strained
relationships as they
time, however, it is the opinion of many
Continued
Consecutive Dividend
beverages
im¬
countries
entirely different national
employer-employee conditions.
is
to
on
page
Mi:
Nehi
the
This fact exists because of entirely
laws
and
industrial
organizational
bers
nego¬
Edith Nourse
Rogers
Congress, if en¬
acted into law in its entirety, cer¬
tainly will prove beneficial to business in general and
provides promise for a very bright general economic
outlook for this year of 1955.
keep
the
of
101
flowing to foreign industry from the American market
will increase production and
profits of those associated
with that
industry but not necessarily improve the gen¬
this standard of living.
It seems to me our Government
would be inconsistent with the bipartisan national ef¬
fort or policy if in the process of reciprocal trade
to
to
level
viewpoint of politics, but from the effect
In view of the
our
of
action
general economy of the nation.
of
tion
through the medium of increased trade does
working together in a
countries trying to gain a
of the American market in
market
American
follow
and
labor
its
the
of
skill
industry and labor do not
relationships or these qualities
make
detriment
genius of
life and living.
cannot
the
the
with American
industrial
to
the
of
with
nation
volved, causing unemployment and
Foreign
larger
these
possess
in
American
freedom.
competition
of
from
industry
intelligence
land
to
Message
of international
processes
In
holds
Eisenhower in
If this extension
place, which could have
public
Union
other
procity.
utility
expansion
and
transportation enterprises.
The leg¬
islative program outlined by Presi¬
dent
with
industries affected in the United States.
As a result,
unemployment in these American industries could take
includ¬
same
reductions
tariff
manufacturers
apartment
The
re¬
might cause.
A small percentage
reduction in the tariff relating to certain specific im¬
portations might prove very beneficial to the foreign
structures, public and private hous¬
ing, is expected to increase over the
for
which
ments authority is granted by the Congress, it will be
extremely important for those exercising and executing
this authority to balance all of the economic problems
involved relating to proposed reductions of tariff rates
now protecting specific American industries in the nor¬
a
ex¬
parts
nation building construction,
ing
an
program
the President's
is
three-year extension of the Trade Agree¬
providing the President with authority to
thing to comprehend all of the
ended.
appear
legislative
process
business of other nations.
automobile
cellent
negotiate
desires
Early indications seem to suggest most of the
great American industrial enterprises will experience in¬
creased operations over that of the
turing all
Act,
America
,
just
a
this
of
industrial
International trade must, of course, flow at all times.
S. Congresswoman from Massachusetts
Based upon many reports and
•year
ments
had.
ROGERS
this year of 1955 should be one of the
history.
ever
the
for
quest
veloped.
We need to create
feature
major
affect
san
jobs which will be needed
new
annually.
A
A
Taxes—unwisely levied
believe the day
I
when
(357)
O-
102
The Commercial and Financial Chronicle
(358)
102
States,
united
the
strength to the point that the Com¬
enemies do not dare to challenge its power.
This
military
its
tains
munist
might be considered peace by armed might but regard¬
less how it is considered, it is the sober view of many
prevent
to
involved
element
serious
Another
at
be
not
in
based
does
general.
upon
In other
words, a reduction in Government spending, if of suf¬
ficient amount, will be noticeable in the general busi¬
ness conditions not only
in those communities depend¬
ent upon national defense industries but also eventually
view
In
future
be
to
seems
time
this
great conflict involving the very
the American way of life, it
this
of
and
freedom
of
for
dangerous
almost
Government at
our
to reduce the mili¬
entertain any proposal
to
tary power of America.
Of course, because of the
genius of American science and American military
military strength may be
this shifting from one
concept'or use of power to another, our Government
must be extremely careful there is no reduction in our
strength.
Weakness invites catastrophy. A bully never
picks on one his own size.
If we as a nation are to
survive and if our principles of life and living are to
be
maintained, then our Government has no other
choice than the duty of keeping America's power greater
than that of any combination of enemies planning our
strategy, the elements of our
shifting, however, in
constantly
of the Federal legislative outlook
In any consideration
for
it
1955.
to
seems
the proposals I have
me
discussed
extremely important not only to every
American but to every citizen of the free world.
Em¬
so
briefly
are
phasized from other viewpoints, the way the Congress
finally enacts these proposals also is extreme impor¬
tant to our Communist enemies.
In legislation of such
importance
extreme
the
make
to
the
Congress must
decisions.
Congress
the
everyone
conclusions
correct
afford
cannot
and
luxury of error.
E.
is the
This
the
columns
season
with
the
whereby
words
honeyed
and
the
forecast
and
brighter facets of business and industry are published.
I think this is a good thing to do.
After 365 days of peering ahead
for road blocks—of constant weigh¬
and appraising the implications
ing
of
every
—it
i
I
is
little cloud
well
the horizon
blessings
on
"count
to
our
instead of sheep"—black sheep, that
If mistake is made,
is.
seers
of
their
field
beyond
do
to
I
mistake,
a
the
Mother
shall
that
myself to the
confine
life insurance outlook where visibil¬
of
free
our
The
insurance
purchased since World War II shows
of
graph
fellow
regularly
the
or
will
Jones
new
life
Index
of
in 1954
billion of
such new life insurance were registered on the books
of our companies.
That was a gain over 1953 of 21%
and, added to insurance already in force, brings the total
of life protection in this country to about $339 billion.
The most significant thing about this record of the
past is the fact that some 31 million people bought their
first life insurance policy or added to their life insurance
holdings in 1954. In a substantial way this is a measure
of understanding and acceptance which bodes well for
my
their
personal
security
brought
channel
to
by
which
others
other
business
good
We are,
of
invest
to
of
The
the
of
for
securities
investment
quoted
outlook,
and
and
$2y2
reinvestment in
1955.
It
quarter kept pace.
represent the returns from but 66
insurance companies in the country.
of
of
our
•
stocks
the
and
shifts
more
by
persons
than
whom
to
•
yielding
the fam¬
and
rate
Mutual
the
Federal
Housing Act
seems
to
trailer-flatcar
handle
traffic
Houston
San
and
Antonio
and
points
Grande
also
further
be
extended
to
include
move¬
with
Union
Pacific,
Northern
Pacific,
and
to the railroad industry as a whole, ]
spite of huge improvement programs, anc
operating efficiencies, current earnings of th<
railroads are inadequate by any standard.
The returr
on
invested capital is considerably less than that o:
other
regulated business
and
is greatly
below tht
respect
in
increased
average return of manufacturing companies.
Means o:
lessening this disparity, which is so prejudicial to the
railroads, should have the serious consideration of the
American people.
GEORGE
which for 1955 appears better
sound and with each
never more
strides in the ap¬
fields in
electronics
method
savings banks' assets are at an all-time high.
were
the
points in the San Francisco-Los Angeles
points in Oregon and Washington in
and
that
feel
P.
RUTHERFORD
President, The Dominion Securities Corp., N. Y. City
ever.
Their investments
will
between
These shifts do not affect
than convenience.
Rio
was
service
With
the overall savings picture,
in
Great Northern.
competition between ourselves will also cause some
means
between
connection
are
deposit
developments
lower
territory
with other types of savings institutions. Our
better equipped to meet the challenge this
compete
population
"Golden
Pacific made outstanding
areas
ment
prospect of an¬
on
continually faced with the problem
course,
Ever since February, 1952, the Canadian dollar hai
consistently sold at a premium over the U. S. dollar, a
premium which for the past six months has seldom beer
passing year they continue to win the confidence of a
areas
they
their
services
in this state
serve
the
In the year ahead,
greater number of depositors.
may
be broadened so that
be available to more
Banks in every
to
stimulate
desire to
save
may
really
President Eisenhower, "able
of
numbers
large
In
17 states.
state of the Union so that we
in
Pres¬
Mutual Savings
distant future, we hope to see
more
people.
Savings Banks serve only
Mutual
ently,
the
less
fellow
Oct.
regularly. ..."
,
3%.
This trend
been apparent
of
strength in the
ever
Canadiar
since
2, 1950 when for the first time
11
Canada ■ permitted un¬
trading in its currency.
This steady increase from 90 ^ on
years
restricted
the day when
to
the dollar
was
set free
$1.031//2 at the present time is the
direct
result
of
of
course
Canada's
expanding economy.
the
citizens,
than
dollar has
in
may
The
early
while
postwar
impressive
expansion
less com¬
far
was
prehensive and diversified than the
D.
RUSSELL
J.
accelerated
activity of the past four
years.
Investment
of
approximately
$60,000,000
in
capital
improvements on Southern Pacific in 1954 raised the
operating efficiency to a new high.
The
measure
of the railroad's operating
efficiency, gross
ton-miles per freight train hour, was
over
57,000 in 1954, compared with
about 53,000 in 1953, which was the
railroad's
previous all-time high.
Among the major improvements
completed in 1954 were 95 miles of
Centralized Traffic
Control between
Crescent Lake, Oregon,
substantially increasing the traincarrying capacity of the line; en¬
largement
of
switching yards
at
Eugene and
Indio, Colton,
completion of
the
crowded
J.
Russell
26
new
new
way
streamlined
passenger
cars,
type dome lounge car, and a new type of car
trailer units in service in 1954.
Well
under
way
in
gravity switching yard
it
is
at
Gross
National
annual
an
Product
$16.5 billion, while today
rate
of approxi¬
Capital expendi¬
plant and equipment
mately $24 billion.
tures
for
for
1954
new
are
estimated
than the
more
ments
today
which
are
1949
in
Rutherford
P.
$5.8 billion, about $2.3 billio
level.
1949
completed
at
G.
Many of the major develop
only in the planning stage:
nearing completion.
were
or
The flow of capital from the United States, for invest
ment in
Canada, has not only been sufficient to balanc
trade and other deficits
increase
and
on
current
account, but also t
Canada's holdings of gold and U. S.
almost $800
million.
equipment
may
not continue at the
any
great decrease in spending for capital
is
no
indication
new
level
same
past,
there
dollars b
While expenditures for
the
port
in
dining service—the "Hamburger Grill." The Company's
highway trucking subsidiaries placed a total of 121
additional highway automotive units and 232 more high¬
a
was
that
there
plar
as
will
i
b
a
with greater ease;
placing in service of 98 more new
diesel units, 1,707 new freight cars,
serve
Donald
the
Yuma, and El Paso;
by-pass line around
Los Angeles area to
The
in 1949
President, Southern Pacific Lines
the
larger companies—and there are nearly 800 life
Liberalization
savings
year.
of 1954 at more than $4 billion—
certain commitments of the last
figures
of the
in
50%
a
its
terms
Valley. Existing service into
substantially increased.
In its
expanding trailer-flatcar "piggy-back" service, the rail¬
road was moving about 155 loaded vans on an average
day toward the year's end. By the end of January, 1955,
investing these funds at yields that will enable us to
Industrials;
billion for
mortgage loans. This represents almost 70% of the cash
seems
liquid
the
other
influence some to purchase homes and may
may
influence
railroad
of
also
and
in
who
retailers
been
moving between the San Farncisco Bay area and points
in Nevada, Utah, Idaho, Wyoming and eastern Oregon,
hope for a free spending
year; the strong belief on the part of most people that
the government will not permit a recession or depression
More than $8
optimism
own
end of the third quarter
for
the
has
During the
year
Southern
Pacific's
"piggy-back" service was extended to
every
bear
to
campaigns
the public.
Turning to our investment outlook: We can see it
rather well spelled out in the figures of advance com¬
mitments.
Never were the life companies so heavily
committed. These commitments have been totaled at the
available
to
banks will, during 1955, increase deposits by at least
evident among
billion
solidly
indication that the mutual savings
the
same
percentage as during the past year. This is ex¬
pected in spite of the strong influence which will be
There is
on
including the first experimental use of television
viewing the operations in a switching yard; and
further expansion of radio installations on
trains, in
yards, and at wayside stations.
deposits by $1.9 billion—approximately 8% of total de¬
posits.
mechanically
order for
are
for
T. Rowe
During the past year, mutual savings banks increased
right, I know I am right and if they are wrong, I could
still be right with this new appreciation of insurance
$1V2
contributing
and
type
1954,
Daniel
even
strengthening the national basis of our society."
temptation is great to quote from those who have spoken
for steel, automobiles, utilities, chemicals, rails, elec¬
tronics and construction projects—all bullish. If they are
about
save
greater amounts, you will be adding
to
the future.
buttress
to
what the
plication
stimulate
to
additional
same
of 1955.
summer
there
1940
the
of
cars
Southern
this week, you are able
in
large numbers of
citizens, the desire to save
"If, during
outline rather similar to the Dow-
taking the same sharp upturn.
To
private indus¬
and business, or in the savings
our government." President
Eisenhower
expresses
it this way,
bonds of
be, to again borrow from
ity is high.
an
securities
our
not make
Shipton act.
but
it is that
reach
sometimes
areas
E. A. Roberts
grow
the savings of
ily savings dollar between our savings banks and other
thrift institutions will cause some shifting of deposits,
Few publi¬
of optimism.
review
annual
filled
are
to
economy
year due to an increased investment in higher
first mortgage loans. However, competition for
ROBERTS
A.
perennial
omit
and prosper is
individuals
who
practice thrift, whether these
savings be invested in the financial
institutions of this country or in the
our
hundred
growth
Empire"—Cali¬
fornia, Oregon, Nevada, Utah, Arizona, New Mexico,
Texas and Louisiana—while the population of the nation
as
a
whole has risen only 20%.
Rising population is,
of
course,
bringing with it new industries and an
expansion of established industrial plants, so that a
great industrial development is taking place in the area
along our rail lines. For the past 25 years, Southern
Pacific has had an average net gain of one new spur
track industry a day along its lines.
in
part; "The ability of
rooted in
banks
President, The Fidelity Mutual Life Insurance Co.
cations
states in
Week
Since
Thrift
placed in service in 1954 to handle
cars
Two
delivery in the
The
Thrift.
of
National
of
foods.
refrigerated
people elsewhere, e.g., intensified advertising and selling
annihilation.
defeat and
exponent
investments, Southern
in
giant refrigerator
try
communities throughout the nation.
in all
American
by the end of May, 1955
units to help handle the
Fruit
frozen
Franklin, the best known
Proclamation
to
years
investment
in
new
equipment for
Express Company which is jointly owned
with Union Pacific, including 100 super-giant ice re¬
frigerator cars and 112 mechanically refrigerated super-
Outlook
Benjamin
in
keep
$400,000,000
five
past
its wholly-owned
shares
Pacific
significant that the "Chronicle's" Annual Review
Issue will be published during the 38th
It is
than
more
the
diesel locomotive
new
Pacific
opening day of National Thrift Week is the birthday of
remain,
163
In addition to
and
in
Already ordered for delivery
Savings Bank,
President, Kings Highway
invested
has
property
up with growth of the territory it serves, and the ex¬
pectation is that heavy investments will continue in 1955.
ROWE
T.
railroad
growing traffic volume.
responsibility
indirectly in the general economic level.
and
The
are
DANIEL
have recently been
jointly with Union
modernized and enlarged exchange facili¬
Ogden, Utah.
tracks
Completed
operation.
were
transportation
as
how these might
On the contrary, they must
upon
reality and upon necessity.
The fact
however, that any reduction in national
defense spending certainly is reflected directly in those
industries devoted largely to national defense contracts
be
money,
Annual Celebration of National Thrift Week. Jan. 17, the
primarily
gauged
affect business
new
proposal
this
in
national defense and American military
of
for
demand
Thursday, January 20, 1955
.
classification
bowl
in
ties at
Brooklyn, New York
effect, if enacted into law, upon the general busi¬
conditions within the country.
The requirements
must
company
well as mu¬
nicipal demands, should provide ample outlets to round
out our portfolios, and list 1955 finally as one of the
better years in the last 15 for life insurance investments.
is the
ness
life
for
outlet
Corporate
Armed
the proposal to reduce our
will meet with considerable difficulty.
Forces
investment funds,
cenventional loans
slightly higher yields continuing in favor. .
substantial
with FHA loans at similar yields and
it
view of this thinking in Congress,
that
believed
placed
Pacific
This should provide
expansion of the GI market.
atomic catastrophy of world-wide
an
In
proportions.
is
only way at this
in Congress, this is the
the leaders
of
time
16
a
and
that actual war can only be averted if
the very citadel of freedom, main¬
the Congress
in
first
another year of near-record housing construction,
assure
101
Continued from page
.
.
was
a
new push-button
at Houston, Texas, where the
The capital
a
expenditures of recent
stabilizing
balance.
upon
Imports from
coal, iron
crease
effect
the United
in
some
instances,
States
of
eventually
Canada's exports, on the other hand,
ore,
should hav
merchandise
trad
crude
oi
and certain machinery should steadily de
ore
and,
Canada's
purposes.
years
disappea:
particularly of iro
aluminum, nickel and other strategic metals shoul
increase
1954
much
substantially.
smaller
adverse
The net result should be
trade
balance
with
the
a
ver
Unite
Number 5396
Volume 181
.
.
The Commercial and Financial Chronicle
.
with all other
The favorable balance
States.
countries
Sales
trade
.
deficit,
smaller than
a
If the dollar should
Canada continues to be substantial.
closer
decline
to
Canadian
new
bond
issues
in
dividends
United
during
the
States,
which would again strengthen the currency.
fact
a
reasonably safe to
to
CLAUDE
T.
ahead to
which
it
broadcast
in
revealed
Sarnoff
Year"
during
types of
featured
many
color
"Spectacular"
David
and
shows,
dramatically
potential scope of
the
color TV.
color tube and
total
were
(2)
production volume will be at a
Color TV Tube and New Set:
placed
creased
lowering level from 1954's rates, this
orderly approach
an
Television:
Color
"Introductory
programs
plants, and electronics as applied to
planes and missiles. Although it is
indicated that the military aircraft
in
a
on
The RCA 21-inch
TV color receiver
using this tube
the market and production will be in¬
new
1955.
commercial design stage.
valleys of work load that have
plagued the industry in the past.
anticipate
that
Ryan
at
(4)
Electronic Light: This new development by RCA
was
advanced to a point where it promises important
applications in many fields. It makes possible new forms
our
employment during 1955 will be rela¬
tively stable at
of
around
annual
The
T. Claude Ryan
in
aircraft
fields has reached
an
ad¬
the
As
(6)
pioneers in production of the
large quantities of such
1955 to produce
including
afterburners
complete
for
jets,
(7)
by
In
as a
rocket
overall
for
prospect
the
coming
year
is
on
G.
Mo.—A.
Stock
Midwest
Ed¬
and
Benjamin
admitted
to
Marbury
to
grams.
in
this
The
country during 1954.
NBC
and
our
Television
"Hi-Fi":
Increased popular
in records
was
was
made
in¬
stimulated
retail
sales
of
TV
receivers
Canada, 26 TV stations
television
Five of these
network
owned
are
now
independently owned stations affil¬
are
on
an
international
scale
is
not
It is bound to be achieved in television
away.
com¬
by the NBC,
network.
far
too
as
it
was
in radio.
Magnetic
TV
Tape
Recording
television, demonstrated by RCA at the end of 1953, was
developed further during 1954 and will make its debut
during the coming
year as a new tool for the
ing
industry.
RCA
will
soon
will
1955.
have
a
profound
of
of the
new
widened
to
simple, rapid and economical
as a
accumulate
can
be
a
as
the
whenever
desired, in the
library of phonograph records
Electronic Light
ciple
electronic
of
1955.
light
electronic
Amplifier
under
Light amplification
the
uses
development
more
by this
achieved experimentally in ratios of
that figure reaches 100 to
1,
a
prin¬
in
RCA
brightly dur¬
means
more
has
been
than 20 to
will
on
page
104
be
John
Broadway,
New
York
City, members
Stock
Co.
39
ship.
SAN FRANCISCO STOCK EXCHANGE
of the New
Exchange.
BIG BOARD
WEST
OF THE
CO.
»fIFTU
j..«u,
CiNCINN A.T I,
OHIO
OPEN FOR TWO HOURS
Statement
as
of December 31, 1954
AFTER THE CLOSE OF
RESOURCES
and
Cash
United
State
Due from
11,982,090.47
6,720,614.37
J—
Discounts
and
Banking Premises
1'f
3,698,537.08
Owned
48,041.59
Estate
Real
Accrued Receivable
Income
Other
'1%
Bonds
Loans
EASTERN EXCHANGES
$ 74,041,349.36
1
Municipal Bonds
and Securities,
and
Other
Other
Banks
Bonds
States
and Prepaid Expense
THAN
securities
for these
$324,940,572.72
—
for
CAPITAL
Dividends,
Interest,
FUNDS,,,,,
Taxes, etc—.
•Commercial, Bank and Savings
U.
issues
OVER 150
S.
A
2,740,061.51
Profits
TOTAL
Reserve
$ 8,000,000.00
12,500,000.00
shares),
-
Undivided
dually traded
important market
on
release of
Government
TOTAL
-
leading Western Securities
stocks of the Hawaiian
PREFERRED
sion is extended to
$ 23,240,061.51
3,268,193.17
291,019,122.51
7,348,026.56
65,168.97
Other Liabilities
$324,940,572.72
of
RATE
ment
$4 374.4S1.77
which under the
Section
1107.12
deposit in the Banking Depart¬
provisions of the Banking Law of the State of Ohio,
of Trust Money on
is a Preferred
Claim against the Assets of the Bank.
of
Commis¬
approved members
registered exchanges, the N.A.S.D.
and Banks.
Sessions 7 A.M. to 2:30 P.M. Pacific Time
301
PINE
STREET
SAN FRANCISCO 4,
»includes
news
Exchanges.
Islands.
LIABILITIES
Stock (320,000
Surplus
200
an
after the close of Eastern
including
Capital
...
446,671.00
Resources
TOTAL
844,342.74
MORE
1;
practical amplifier
Continued
scope
way
at will.
amplifier, which
light,
same
makes it pos¬
now
coun¬
when
owner
library of favorite television programs
seen
sible to hear the favorite record
The
will
use
developed, making it possible for the TV set
which
unit
Broadcasting Com¬
storing complete TV programs for rebroadcast.
records
the
broadcast¬
recording
Ultimately, television tape recorders for home
ing
and
tape
be installed by the National
for field-testing
means
television
Laboratories during 1954, will glow
*
as one
An
the
in carrying all
try's fastest growing industries—established
in
&
William
partner¬
limited
efforts
further progress during
on
Exchanges,
admit
These
In
pro¬
operation
the air by early 1955.
on
nation-wide
the others
iated with
States, 140
TV stations began
new
TV
than 420
more
equipped to handle network color
More than 90
expected to be
are
pany
Television
Grobman
York
G.
be
picture.
instruments.
Television in 1954—its eighth year
partnership
Muir
will
27th
Jan.
of which will be
color
John Muir Admits Two
Street, members of the New York
and
opening of 1955 there will be
lift
On Feb. 1st William J. Charlton
North Eighth
Sons, 409
on
or
players and
new
of
one
develop¬
in
LOUIS,
&
At the
be
record
Laboratories.
effect
A. G. Edwards Admits
wards
can
certain.
High Fidelity,
in
these
RCA
production.
ST.
to
television stations in operation in the United
through research and experimentation in these fields at
concepts to be adaptable to future quantity
new
a
that
of the Ryan Firebee jet
use
steady progress, with particular emphasis
ment of
screen
remote controlled pilotless target plane
sible future applications.
The
thin, flat TV
the wall like
During 1954, basic progress
by the Air Force, Army and the Navy, with other pos;
on
end
edges of the picture, is now in production.
stimulate production of color sets by
very
certain
these developments forward. New
knowledge was gained
prospect, is expanding
drone missile
hung
a
They will advance
growth of the phonograph industry in 1955.
units,
and
seems
terest
motors for missiles.
.
and
on
Designs for commercial use were
substantially advanced. Extended use of transistors in
"hot parts" for jet and piston engines, Ryan will continue
during
in color
Transistors:
1955
the nation's
of
one
or
framed
Boeing KC-135.
new
When further devel¬
pros¬
pect for several years' production of components for the
-
Electronic Light Amplified:
white
major contributor to Amer¬
as a
jet tanker-transport program, with
new
(5)
the
Magnetic tape recording for black-and-while and color
oped, this will have important applications in television,
X-ray, radar and other fields. In television, for exam¬
ple, techniques used in the light amplifier will eventu¬
ally make it possible to see a TV picture in black-and-
and
Also of major importance is the fact that
Ryan has been selected
ica's
classified
by
advances, both in tech¬
in the industry as well and will
"off the ground" and into the market.
of illumination and "cold light."
employees and an
payroll of about $20 million.
company's research program
electronic
vanced stage.
present levels
or near
3,700
certain
is
prises 200 stations.
(3) RCA's Magnetic TV Tape Recorder: Brought to
NBC will commence, early in
1955, field tests in both black-and-white and color tele¬
vision tape recording.
long-range sustaining level of
output that will flatten out the peaks
a
We
38,000,000
new
pur¬
ity to the
were
.
development and production program in all three of the
major fields in which we are engaged—aircraft, power
and
approximately
others
Our company looks forward during the year
actually involves
to
Television is destined for
It
Compatible
NBC's
stabilization of employment based on a well-balanced
to
States
of the year.
follows:
(1)
President, Ryan Aeronautical Company
a
United
Major Developments
RYAN
higher.
nical design and in programming. An
outstanding devel¬
opment in 1954, the RCA 21-inch color tube, operating
with the magnetic equalizer which maintains color
Major developments in 1954
as
in
sets, which will lift the total number of TV sets in the
$22,-
preferred
on
again mark
advancing the
once
electronics
Looking ahead, industry production of television re¬
ceivers in 1955 is currently estimated around
6,000,000
stock.)
stable than in the past.
more
These accomplish¬
fields
for 1955 is expected to be about 10%
common
on
$3,153,000
related
in
Sales by the electronics industry as a whole for 1954
estimated atjmore than $10 billion; and the volume
declared
amounted
.($18,898,000
advances
103
are
that Canadian currency in
assume
the future will be far
stockholders,
year,
and
stock
it
to
the
051,000.
While it is
extremely difficult to predict the long term outlook,
is
to
stimulate the sale of
parity it would
and
industry as a leader
nation's economy and welfare.
products and services by RCA in 1954 will
approximately $930 million representing the
largest volume of business in its 35-year history. Net
profits before Federal income taxes will be approxi¬
mately $84 million and after taxes
approximately $40 million. _T o t a 1
and the flow of new capital into
year ago,
the
of
amount
from the present level. The
particularly with the United States is
great change
programming, especially in color.
ments
Corporation of America
Radio
The short term outlook for the Canadian dollar would
no
of
SARNOFF
Chairman of the Board,
items.
other unfavorable current
indicate
GENERAL DAVID
BRIG.
enough to balance dividend
as tourists' expenditures and
likely may be large
payments abroad as well
very
(359)
CALIFORNIA
104
The Commercial and Financial Chronicle
(360)
Continued
Electronics and Atomics
from page 103
LYTLE
Science and engineering,
light will mark a significant step
of illumination and television.
of
business and industry, at the
opening of 1955, are confronted with new challenges that
must
be met quickly to keep pace with the rapidly
changing world. The electron and the atom, two of the
most powerful forces in Nature, will give increased im¬
petus to the industrial revolution already under way.
There are definite indications that electricity for com¬
mercial use will be generated from atomic energy, and
that atomic power for the home will be a reality within
forward in the sci¬
ence
applications for the electronic light ampli¬
foreseen in a wide range of technical uses where
Practical
fier
are
brightness is desired, as in television, X-ray,
fluoroscopy and radar. In television, this new form ot
-light amplification will bring bigger and brighter pic¬
tures; it \v.iir revolutionize television as we know it
increased
Electronics
Transistors
toil
move
research
Transistor
■
development activities
and
The
while
than
10,000,000
sets, including auto radios, will be sold at retail during
coming
United
increasing the total of radios
than 125,000,000.
year,
States to
in
Reserve
are
the
million
20
It would
this
radio
and
RCA
30
the
operates
have
circuits linking the United
the
duction
relies for materials,
parts and components
successfully develop
system.
a
in
Of
RCA's
a
the
fidelity
instrument
1954
field,
sales
increased
for
about
atom
the
50%
over
1953.
new
small
as
"Orthophonic" system, promises to add impetus to
tion
of
new
of
living.
of
good
million dollars for the
into
a
necessary
to
service
or
a
time
during
built
are
in
time
some
success,
whole in 1955.
The
It
S
:!
1
r
RECTOR
to
STREET,
that situation-
seem
we
can
cent
per
of
party.
that
more
the year
was
NEW
the
well for
of
the
NEW YORK
Republican,
seems
to be sound
of
all
agencies
Cities
believe
of freedom
the
to
men
productive
with
broad
1955
year
will
be
six
nearly
all
phases
in
ex-
foreign situation is rather
will
will
new
prevent
The
third
any
Government,
not
be
overdone
business in
It has been
higher standards
for
war
the
least
at
States,
and
and
will
create
great
a
be
writing
you my
read those of others
ideas, and I will
who, likewise, will
you.
these promises
W.
Brooks,
member
on
page
James F. Cooke
of
James F. Cooke, member of- the
New
York
Jan. 21st
Stock
became
Lindley,
York
York
City,
Exchange,
New York Stock
partner in
a
Broadway,
61
away on
thereto
Stock
Mr.
Exchange.
been active
floor
Moore
was
a
as
an
Jan. 11th.
C. Prevost Boyce
in¬
and
broker
Prevost
prior
Boyce,
D.
Stein
T.
Brothers
away
in
partner
Co.
&
Exchange, passed
members of the
C.
Jan. 14th at the
&
>
partner
'
Boyce,
age
(old) who
same prior to the
expiration of six (6) years from February 29, 1952, to the Exchange
Agent appointed under the Plan, will receive in
exchange the new securities of Foreign Power
and the cash (if any) to which
they are entitled under the Plan.
Notice is hereby given that the Plan
provides thi it no stockholder of Foreign Power who
shall fail to claim the securities or the cash
to which he is entitled
pursuant to the tenns of the
Plan prior to the expiration of six
(6) years following February 29, 1952 shall be entitled to
receive any part of said securities or the
proceeds thereof or any other cash to which such
stockholder may have heen entitled under the
Plan.
of Transmittal which
must
E
G
D
I
N
G
specified in the Plan.
Holders of certificates for such Preferred Stocks and for
such Common Stock
Copies of the form of Letter
R
certificates represent¬
wlien^ surrendered and other material relating to the Plan may he obtained from
Bankers Trust Company,
Exchange Agent, Corporate Trust Department, 46 Wall Street, New
York 15, New York, or from the
Company.
Lpon exchange, holders are entitled to receive dividends
upon the new Common Stock
heretofore paid as follows:
Filling, Land Reclamation,
Canals and Port Works
River and Harbor Improvements, Deep Waterways
and Ship
We
are
Channels
equipped to execute all kinds
tion
accompany
and
port
of dredging, reclama¬
work anywhere in the United States
ing stocks
10f
Contractors to the Federal Government
Correspondence invited from Corporate and Private
Interests
share in cash plus one share for each 100 shares of the new Common
Stock,
on December
5, 1952.
per share on the 10th of March, June, September and
December, 1953.
per
per
share
on
the 10th of March, June, September and
December, 1954, plus
end dividend of lot per share
paid December 10, 1954.
a year-
AMERICAN
&
L
Atlantic, Gulf and Pacific Co.
YORK
HOUSTON 2, TEXAS
38
Citizens State Bank Bldg.
15 Park Row
FOREIGN
POWER
COMPANY
Everywhere
Longest Experience
NEW
Dated: New York, New York,
January 20, 1955.
INC.
CHarler 6091
BArclay 7-8370
By W. S. ROBERTSON, President
Cable Address:
"Dredging," New York
S
"m
>
of 59.
Plan, all rights of all holders of the Common Stock (old) and of the
Preferred Stock ($7), $6 Preferred Stock and Second
Preferred Stock, Series A ($7), includ¬
ing the right to all accumulated and unpaid dividends on such Preferred Stocks, have been
D
of
passed
the
surrender
10G
"
the
on
dividual
as are
the
doing the things that have beer*
pleasure to give
a
be interested to
On
rights of such holders
un¬
has real"
ours
left undone for the past several years.
Brooks has
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 of Foreign Power
allotted to them by the Plan and such other
or
1954.
and
developments of
New
February 29, 1952 the Plan of Reorganization (Plan) of American & Foreign Power
Company Inc.. (Foreign Power), pursuant to Section 11 (e) of the Public Utility Holding
Company Act of 1935, became effective.
our
all embarking on extensive programs which I
are
deal of
New
of
of
stability in its thinking and sufficient backbone in its'
team¬
Seeley &
of U nsurrendered Stock Certificates for
Preferred Stock ($7), $6 Preferred Stock,
couple
next
a
Continued
All Holders
in
that
others
If this be true, it will go a
realities.
YORK 6,
views
believe
I
generous
classified by
is such
years.
surely transform
but
sufficiently
stabilization
think
I
that
bulwarks
is
reading and listening
my
several
promising
change in politics during,
certain, but I think this great country of
With the blessings of peace and the practice
will,
Preferred Stock, Series A ($7), and Common Stock (old)
AMERICAN & FOREIGN POWER COMPANY INC.:
to
.
come.
Washington,
together
We all realize that the
and in the air, the electron and
and
tolerant
toward
way
actions
businesses, new jobs, and
Second
Pursuant
to
believe that he listens well to what
than
production for national defense.
new
in
1954
Eisenhower
and
the building of
AMERICAN & FOREIGN POWER COMPANY INC.
Notice
Lytie L. Saisbury
While President Eisenhower is
years.
eight
materials and manufacturing facili¬
sea
of
part
also in the nation-wide
not only in
notice of the
take
must
attitudes
In
almost
James
TWO
past
it would
and
up,
for
Seeley & Lindley Admit
t:\-n
with
the
lucrative loan and mortgage accounts
very
continue
perience,
Electronic-Atomic Age open the way for the crea¬
the
It is believed that the annual retail
as
businesses.
strengthening the
are
sales total cf 225 million dollars in 1954 will rise to 300
industry
land,
on
democracy.
Popular interest in Hi-Fi, especially in RCA's
the sale of records.
product,
suppliers located
7,500
instruments for civilian use, but
RCA Victor's introduc¬
the playing surfaces of long-
whole during
or
State of the Union the majority
Government
Today,
high
as
project
'
the
ties that is basic in
industry
with
talked
country.
fields, daily adding to the stature of industrial
many
America.
playing discs.
the
bankers
been
long
each other's activities and give widespread employment
mobilization of men,
In
have
ideas of the opposite
Big and small business working together complement
and
that protects
I
Congress will meld
of
achievement in modern mass pro¬
supplier, upon whom the manufacturer
the
is
tion of Gruve-Gard—a novel combination of raised rims
centers
favorably
compare
1954.
President
his
I
work that leads to
in
that the earnings by
should during
seem
latter
that
foreign centers.
One
year was
sound with
days, all of whom report a
favorable year for 1954, during
very
transmissions) is accelerating, and
radiophoto circuits to more than
program
now
every
major engineering accomplishments
very
thirty
One of the keys to
record
during the
of
We
popularity of the phonograph is expected to
continue to increase the number of machines in use
and this, of course, will mean greater sales of records.
record field
general
institutions
year
several
States, its territories and possessions with 68 countries,
and a total of more than 6,600,000 messages were proc¬
essed during 1954. The trend toward direct customer-tocustomer services
(TEX, teleprinter, leased channels,
Renewed
the
of
cases
the
World-Wide Communications
RCA has 86 radiotelegraph
players of all types are ex¬
pected to be produced and sold in the next five years.
of
in
except
think
I
possible exception of credit being
should
33M}-rpm and 45-rpm
records in 1943-49, the number of record players in use
has greatly increased.
Today there are more than 25
million turntables—many of them equipped to handle
the three phonograph speeds—compared with only 16
million phonographs at the end of World War II.
About
the debt rather than to
of
increased
financial
move
Progress Through Teamwork
of
it
which
Phonographs and Records
introduction
that
seem
over-expanded.
defense.
the
would
It
banking situation is
a
more
During 1954 the competitive impact of telvision upon
became increasingly apparent. The man¬
agement of NBC early recognized the symptoms of eco¬
nomic dangers that threatened network radio and re¬
solved to cope affirmatively with them.
NBC has been
leading the way in developing the patterns of audience
and advertiser service for the purpose of building a new
base for successful and continuing network radio opera¬
tion, which is an instrument of national service and na¬
Since
handling of maturities during the year
by the Treasury
Banks.
emergency.
key to man's conquest of space.
equipped with electronic brains,
on the ground
guide them in
every
less
new
with
of
reduction
see
devices
watch
as
very little confusion.
Personally, I would like to see some
re¬
will
eyes
or
to
more
the Government debt has been taken
those
network radio
tional
electronic
will remain
money
given satisfactory attention
Department along with the Federal
weight and automatic. In the commercial aviation field,
widespread
acceptance
is indicated
for RCA's new
weather-detection radar equipment, which will be avail¬
able to airlines in commercial quantities by mid-1955.
radio
new
men;
the
and
be
they make toward their
target. Similarly, electronics and the modern airplane
are inseparable.
Electronics has led to the development
of efficient aviation apparatus that is compact, light in
Radio
more
missiles
electronic
flight and
electronic equipment.
that
the
is
electron
Guided
techniques to improve the efficiency and decrease
the size and weight of commercial as well as military
estimated
hands of
the
belief that
my
issues
will
light the scientific and industrial developments of 1955.
tion
is
is
see
the past year, and important
progress was made in achieving a new level of product
uniformity and reliability. It is anticipated that 1955
will witness greater utilization of transistors,
printed
circuitry, and other advanced engineering and produc¬
the
It
afar, and electronic brains will perform many rou¬
tine tasks in the new age of automation which will high¬
were
intensified by RCA during
It
from
the backs and
from
lift burdens
SALSBURY
easy and that the Government Bond situation
care
will
L.
Thursday, January 20, 1955
President, The Marine National Bank of Erie, Pa.
the next decade.
today.
..
.
Number 5306
Volume 181
Continued
from
.
.
4
page
The Commercial and Financial Chronicle
.
'
:"
1
'
*:
•
:
(361)
Business Failures Hold to
,•
Relatively
Steady
casualties. This size group showed
a
Trend
slight dip from 174 in the previ¬
a
ous
Commercial and industrial fail¬
The State oi Trade and
the
the
to
year
that
level
pre¬
vails in the early part of the year,
"Steel."
declares
Any decline shouldn't be
that
mat
as
steel
last
of
ui
sumers
last
needs
inventories
of
their
invenlnven
they
much
as
Some
they've whittled the
down
and
least
of their
out
be
have
steel
people
even
far
as
buy
they
as
think
against 20,694 (re¬
in the previous week and
estimated
at
use.
there
.may
the
at
cars
•
against 5,760
trucks
in
the
cars
^as"
com¬
,
hplnw
occurred"
from'
in
1954
Liabilities
were
mortality
similar
businesses
in
$5,000
failed
with
of
$100,000
last
17
28 in the
Thirteen
as
compared
Retailing and maiiUiauuiH.6atnuoinngouu manufacturing ac-
co.unted
wholly
for
the
week's
upturn, with the toll among
more
or
42.
10
id
irom
16.
service.
dipped
In
other
slightly
lines,
below.
1954.
liabilities
week.
excess
with
among
of
service
mercial
a week ago and
week of, 1954.
retailers rising to 98 from 87 and
involved in 171 of the week's
niciujcu
Failures exceeded last
year's level
only in wholesaling
and
com¬
from 24
380
week of 1939.
week.
Small
second
the
the
week and 172 last year.
failures, those with liabilities unaer $5,000, increased mildly
to 29
thp
mortality
47%
down
which
and 1,657
comparable
were
in the
as
rnnHnnino
1Qco
•
,rQ
,
and 838 trucks in the preced-
ing week and 8,843
Casualties
level
same
Plants turned out 5,970 cars and
798 trucks last week,
Pr^~
parable week a year ago, but ex¬
ceeded
considerably the toll of
Canadian
_
to 200 in the week
Bradstreet, Inc."
24,953 in the like 1953 week.
"Ward's"
up
ceding week, according to "Dun &
de¬
as
to
vised)
edged
ures
ended Jan. 13 from 198 in the
this country, as
con-
some
Now
sired,
Then
inen
year.
year,
getting
were
lories.
deep
as
Industry
105
manufacturers to 46 from
Meanwhile, wholesaling
cas-
Geographically,
casualties
creased in four of the nine
in¬
regions
during the week.
The Middle
Atlantic toll edged up to 69 from
66 while the East North Central
climbed notably to 30 from 17. In
contrast,
declines
prevailed
in
four
regions, including the Pacific
States, down to 51 from 6*2
and
Continued
ualties dipped to 25 from 29, con-
on
page
107
inventory building
some
this year.
W. W. Sebald, Presi¬
dent, Armco Steel Corp., Middletown, Ohio, is one who thinks so,
this traoe paper
reports.
;.
Even
though steel output sagged
last year, the year was the eighth
best
in
the steel industry's his¬
The American Iron & Steel
tory.
Institute .reveals
that
production
castings in
88,305,579 net tons.
of steel for ingots and
1954
totaled
The
American
Institute
rate
having
96.1%
capacity
will
be
Iron
announced
erating
of
of
at
capacity
and
that
steel
Steel
the
op¬
Dresser Financial
companies
of the steelmaking
the
an
entire
Summary
industry
average of
the
for
82.4% of
beginning
week
Jan. 17,
1955, equivalent to 1,389,tons of ingots and steel for
000
castings
compared
as
(revised)
week
and
rate
for
the
tons
For the
in
1955
week
1, 1955.
72.4% and
was
1,726,000
placed
tons.
A
produc¬
year
1,766,000 tons
at
operating
parable
Electric
Time
is
not
com¬
capacity
figures
The
1954
for
Sets
New
All-
of electric energy
the electric light
amount
by
industry for the week
power
all
new
time
-
high
record,
to the Edison .Electric
The previous all-4ime
Institute.
high record at
week's
gain
of
output
of
Taxes
on
income
on
income
95,000,000
comparable
•
«
13,038
9,743
10,787
10,419
7,650
5,675
•
4,619
5,020
5,303
3,321
7,363
5,124
5,767
5,116
4,303
50,360
46,504
44,808
42,303
35,621
•
•
Net earnings
•
t
•
Working capital
.
.
•
•
t
»
.
.
.
t
•
«
«
securities
•
•
•
21,472
10,847
7,844
10,273
5,440
.
•
.
•
.
.
.
19,144 "
19,118
18,289
16,584
15,574
3,406
4,246
4,159
3,519
2,363
59,496
Cash and government
Property, plant and equipment
—
net
54,883
52,299
49,236
41,475
3.80
4.28
3.77
3.68
1.60
1.60
1.40
1.40
38.53
36.28
33.52
32.20
Expenditures for property, plant and equipment
Shareholders' equity
In Dollars per
.
i
Share
;
.
i
Earnings per common share
.
Dividends per common
.
•
share
.
share
Book value per common
*
««••••
•
•
#
.
.
4
.
5.53 '
1.70*
,
:
.
42.40
Current Annual Dividend Rate $2.00
in
1953.
1954
Loadings of
above the
COMPLETE
1 954
ANNUAL
REPORT
ON
REQUEST
over
week
and
the
like
over
Perk
Holiday
creased
10.1%
*
Loadings
week
4
increase of
an
or
kwh.
1,807,000,000
week
•
•
•
•
.
.
the
000,000 kwh., and
914,000,000 kwh.,
Car
79,969
constituted
kwh. above
previous week, when
the actual output stood at
9,833,-
the
Profit before taxes
18, 1954.
This
-the
106,148
9,909,000,000 kwh.
established in the week ended
that
127,356
are
of 124,-
of Jan. 1, 1954.
as
Output
according
a
128,869
was
The
ended Saturday, Jan. 15, 1955, was
estimated
at
9,928,006,000 kwh.,
Dec.
1950
High Peak In Past Week
distributed
was
1951
74.1%.
or
annual capacity
on
330,410 tons
a
1952
ago
capacity in 1955.
percentage
based
rate
because
than
lower
and
1953
130,242
Net sales
month ago
a
the actual weekly production was
,
195 b
is
capacity of 125,-
of Jan.
as
like
rate
tion
weeks
annual
011
828,310
«
of Dollars
a
industry's ingot production
based
The
In Thousands
83.2%
tons
ago.
The
the
with
2,007,000
Up
Post-
freight for
revenue
ended
In
Week
Jan.
8, li*uo,
in¬
72,751
cars
or
13.7%
preceding holiday week
according
to
American
A
GROUP
OF
COMPANIES
Railroads.
'
the
Association
of
Loadings totaled 602,203 cars, a
of 22,026 cars or 3.5%
ND
UNDER
COMMON
CHEMICAl
EQUIPMENl
OWNERSHIP
ATLANTIC
BUILDING
DALLAS,
TEXAS
decrease
below
the
week,
cars
corresponding
and
a
decrease
12.5%
or
:1954
of
below
85,907
clark
cor¬
Olean, Keu: York
the
.Magnet Cove Barium
bros.
Hou ston, I exas; Malvern, Arkansas;
Greybull, Wyoming - Founded 1940
hounded 1880
—
responding week in 1953.
Dresser Manufacturing Division
U.
S.
Auto
Output
Rose
to
An
Bradford, Pennsylvania
-
Pacific Pumps
Pounded 188U
Huntington Park. California
-
Founded 1923
88-Week Peak In the Latest Week
The
the
-Dresser-ideco
automotive
latest
week,
industry
ended
for
Reports,"
155,912
estimated
assembled
cars,
—
Founded 1920
Connersvtlle, Indiana
—
Founded 1854
Jan.
14,
1955, according to "Ward's Auto¬
motive
Columbus, Ohio
Boors- Co n n ehs v i lee J3 cow er
an
ioeco
Dallas and Beaumont, l exas
Security Engineering
—
Founded 1920
Whtttier, California; Dallas, I
exas
—
Founded 1931
compared
with
150,585
(revised)
in
the
previous week.
The past week's
production total of
amounted to
above the
crease
of
output
states
of
6,260
"Ward's."
1954
cars
and trucks
177,539 units, an in¬
preceding week's
units
or
3.4%,
In the like week
139,341 units
were
turned
out.
Last
there
week, the agency reported
21,627 trucks made in
were
MANUFACTURERS
OF
OIL,
GAS,
AND
CHEMICAL
EQUIPMENT
1«6
The Commercial and Financial Chronicle
(362)
Continued
If
from pagej
104
SCHMIDT
WALTER A.
Parker, Philadelphia
Investment Bankers Association of America
outlook for 1955 seems favorable.
investment
The
A
the general situation was more clouded than at
time. The economy seemed to be wavering,
except from the expressions of opinion by Government
agencies but as the year progressed
•the predictions of the Government
year ago
the present
proved excellent. The general busi¬
ness improvement, particularly dur¬
the
ing
should
last six months of 1954,
undoubtedly carry through
the first six months of 1955.
into
In
judgment, it is always difficult
look ahead more than six months;
my
to
however, this year it could possibly
throughout the entire year.
be strong
The
outstanding
continued
has
been
the
the
stock
market.
the
Dow-Jones
At
1954
strength
of
the
year-end,
Industrial
that
from the
To predict
point of view.
difficult assignment. I
think that the market at the present time is in a nervous
condition and I would guess that averages could be 5 or
10% higher during the year but they could also be 10
15% lower.
Because
the
United
Bank
,
*
States
for
guidepost
the
are
National debt, the activities of
Treasury and the Federal Reserve
huge
the
of
and
markets
money
of the
new
greater future loads.
We
will complete a major electric generating unit
spring which will maintain our reserves at ade¬
quate levels. We are planning additional units to meet
future
needs
and
Our
the
general
same
supply
Because
pattern.
Municipal
tax-free
of
is
of investable funds available, however,
son
a
banks.
If
the
market
dealers.
during 1955,
of
especially with
•space heating.
Greater
and
we
W.
W.
SEBALD
Steel
equipment in the
same
1954
new
that
sum
and
large volume, their year has been un¬
doubtedly gratifying. As a matter of fact, it seems to
\ me those houses who have not done well this
j take
far
a look
between
should
industry
„
•»
it would
and
as
think
that
seem
logical time that our
a
that the condition of their
they should be. It is also an excel-
lent time to double-check
I
should
be certain
clients' accounts is
*,
year
Unusual years are few and
at themselves.
our
ourselves and
should be
industry
operations.
our
careful
very
in
offering of securities to the public. To me, to the extent
that those of us in the securities business could fairly be
to that which happened
said to have contributed
1929
The securities
mistake
greatest
our
era,
was
recommended
we
one
were
in the
judgment.
of
speculative
more
According
year
—
than
we
realized and
we
do not want to find ourselves
My principal concern today
same
is
possibility of unqualified persons recommending
the
position again.
uranium and Canadian venture oil stocks and other out-
bright speculations.
We do not want to have that cate¬
to
estimates,
our
1955
industry
than
the
on
the one
just past.
expected levels of de¬
tons.
Y'.'V?
-
matter of
fact, the amount of
steel actually used by manufacturers
a
1954
tons.
The
rise
a
98
difference
million
tons
represented
reduction
in
the
a
inven-
good possibility, that steel inventories will
a
at
of
it appears that steel output is headed
10%. That would make 1955 one
least
of the four best years
the steel industry has ever had.
real strength in resisting the ef¬
general inventory reductions and lower govern¬
spending during 1954. In the present year, inven--
Business has shown
fect of
ment
tories
will probably
tary goods
be increased, and orders for mili¬
likely to be higher than in 1954.
are
Americans
continue
will
to
increase
of living as manufacturers introduce
their
new
and
standard
improved
products,now in the planning stage. If no major strikes
develop, the amount of-money that consumers will spend
in
1955
should
show a continuing increase.
The con¬
industry is planning another banner year, and
housing starts should again go over the million
struction
new
Since
the
downward
and
1953, there has been a
spending for new plants
A further drop seems to be in prospect,
equipment.
but I
in
believe that
business
the
trend
will
be
reversed sometime
dustries of all kinds will continue to
improve their pro¬
duction facilities and distribution methods.
"
an
important factor in
thinking and
our
the
public is encouraged to look more cautiously at
the advice of tipsters and other prognosticators, I think
they would be better off over a period of time.
Our profession is a most important one in the entire
Let us do everything in our power to improve
thinking of the private investor for the benefit of
the country at large.
and
selling prices.
L.
R.
keep
To
We
have
really
meet
this
stiff
competition,
with the natural growth of
pace
had
to be
^vell
We
know
that
our
look for continued
of the main
a
a
slipping
or
This inherent vitality is the
big plus factor in
one
on
has
economy
vitality and instead of standing still,
backwards, is alive and growing.
enterprise system, and
to
as
country, in¬
convincing proof that business is
basis.
sound
as
our
great
SEARING
our
reasons
free
why I
prosperity in the United States.
LEWIS
President, Consolidated Edison Co. of New York, Inc.
Present
indications
that
are
Consolidated
large industrial plants in
our
terri¬
Over
or
tory,
healthy
a
sands
in
York
tone
in
economic
stimulate
varied
of
New
will
the
we
business
thou¬
serve
City and Westchester
County.
cannot
be
due
a
mercial
come
load.
up
construction
Manhattan
takes
holding
time
up
We
to
while
still
to
boom.
receiving
pleted in the last three
Air
sales
as
will space
It
years.
addi¬
some
'
SHEA
profit.
J
..
.
.
.
operations
1955
are,
will
of
course,
of the country.
economy
reflect
the
to
extent
is sustained
h
D.
•
SILBERSTEIN
Penn-Tlexas Corporation
is getting
ready for
a
>
upsurge
new
of pros¬
As I see it, the year 1954 was the year of plan-'
The year 1955 will be the -year of expansion,
leading up to a year of consolidation and accomplishment
in 195o. Sparking the business boom
ning.
separate and powerful .factors. These
first,
expanded armaments
an
program; second, continuance.of
overall liquid credit conditions; third,
Presidential
a
prosperity
-
program,
veering toward a slow-boil but po¬
inflation; and fourth, an atomic
energy industry now ready to zoom
tent
ahead.
\
These
be
bullish
four
elements? will
giving dynamism to
that
is
the
already
new
the
number of
history,
in
D.
Silberstein
great
and a people accustomed
a
of low-cost money
abundance
L.
^second highest na¬
income
tional
the
We start the
with a record
year
employees,
economy
an
strongest
world has ever known.-
working and consuming at high speed. To top it off,
we have
a
population that is growing at a rapid pace;
to
creating many thousands of new consumers 365 days of
The combination cannot "fail to produce fur*
prosperity.
•
*
I anticipate further, growth,.-new acquisitions, more
business and the creation of more jobs during 1955.
•
the
year.
ther
ROSS
D.
SIRAGUSA
too
year
and
hope
is
economic
optimistic
strike
we
situation
least
1955
should
..
.
,
be
1
good
picture in Bridgeport,
sales
because,
other
reaspns
temporary
unemployment
are
—
.
TV sets.
I
in
even
the
Bridgeport
with
machine
tools
and
well
first
six
in* line
country.
months
with
.
Our
is
good,
of
a
ent.
additional
1855 and
production facility proj¬
five
on
In
i
during
the drawing boards at pres¬
addition, new. sales, service
facilities are being
in several cities where our
warehouse
Ross D- Sira?usa
be off
slightly during 1955 to an anticipated but still healthy
6,500,000 sets. Color TV will continue to develop and
grow slowly. From 100,000 to 200,000 color sets may be
sold during the year. •
'* •
.
'
' j
distributing branches are situI believe industry television
own
,
sales will
round
satisfied with the present
First, they are too complex. Second, they
cumbersome
instead of rectangular.
and
prices the
at
public
can
afford will not be
color tube ^available at approximately
a
$50 to $60.
Admiral's
:
use
of "automation" and
printed circuits in
television production has made 1954 a
most memorable
in our company's ^0-year history. Our -engineers
perfected a battery of machines that automatically
assembles half of a television chassis in a matter of sec¬
year
be
have
the
Lewis
A. Shea
inventory pic¬
substantial amount
cau¬
plans
company
feasible until
prod¬
should
rest
with
record
expansion
receivers
,
At the moment the
ture
we
the
a
Lastly the present tube sizes are not standard and the
resultant cost is far too high. Mass production of color
the
metal
1955
optimism.
at
color tubes.
be
With
to
Consumer savings
high.- Employmeniand wages are stabilized at a high
level.
New housing starts are esti¬
mated in excess of 1,250,000 units.
are
.
business
should
1954.
forward
look
tious
are
influences,
up
We at Admiral still .are not
ucts, the economy should get a sub¬
stantial boost, so that by the end of
the
approximately 2,800,000 units*
considerably during
the
last
six months and
industry
sales for 1954 may reach 7,000,000
picked
ated.
one
Y
1954 have been con-
siderably higher than anticipated a year ago and might
well set a new record. Although retail movement dur¬
erected
as
;
Corporation
receiver sales during
Television
and
development of building and road
building and the expected demand
for
Admiral
President,
ects
large
I
believe, however, for the iirst quar¬
ter of 1955, due to other more con¬
com¬
conditioning will be a factor
importance irl our electric
heating in our gas and steam sales.
of
there
at
mid-town
tional benefits from structures
Hudson R. Searing
our
for
new
buildings to
their estimated electric
are
that
com¬
in
continues
to
.
New construction of homes in
territory is
all, I think the
structive
\
A.
better than the year past.
Looking at the
—
conditions
be¬
in
year
perity.
plant
President, The Connecticut National Bank,
Bridgeport, Conn.
Edison's
growth in 1955 will match, if not exceed, that of 1954.
We expect general business conditions to show grad¬
ual improvement over the rather sluggish year just
past.
While we do not have any
new
reflected
President and^ Chairman of the Board,
have
H.
the
of
entirely
larger
of total sales and modestly;
economy
ing the first half totaled
^Competition in the market place will continue
economy.
the
for
national
closing months of
trend
intense.
Education is
end
1
be
mark.
and the economy
if
the
t.:an
and a proper
balance is maintained between labor and material costs
tories of steel held by manufacturers.
be increased, and
for
about
Was
substantial
is
of
wilL
and. that
less
an
are,
As
There
it
during* the coming year will be four
ing organizations who are honestly attempting to follow
a
sound course for the benefit of the investing public
at large.
better
results
the
of
million
w. w. Sebaid
run
that
manufactured,
encounter
mand, .steel production during the
coming year should rise to 95 to 100
in 1955.
of
reflection upon
final
America
so-called securities distributors place a major
the vast percentage of careful distribut¬
gory
the
Our
about
better year for the steel
a
Based
'
in the
Snumway
spent in both
we
first
the
indicates
This should
volume
F. Ritter
1953.
should be
this should have been true of all
unusually
fore
-
the
5
(and
readily
model.
which
At Armco we believe that 1955 will
be a year of good
business and continuing-general
prosperity for America.
As an indication of our
confidence, we plan to spend
approximately $30 million to improve our plants and
of
early in Febru-i
very
chair
we-shall
The
Corporation
chair
dental
new
Furthermore,
new
closely related to the over-all
President, Armco
and
Another ground
usual difficulties connected with the'
builders and contractors.
In
addition, we
recently launched a campaign to demonstrate the
benefits of improved industrial
lighting.
rea¬
phases of the industry, particularly the Stock Exchange
houses.
For some years their business has been only
♦average.
However, with increased commission scales
be
have
securities industry has had an excel¬
1954.
our
introduction
(in terms of ingots), but production
was
only a little *over 88 million
in
to
profession
the.
this
in
year
the
with
ness
dental
design, which will be for-:
mally introduced to the trade and to
coopera¬
sonably stable.
The investment
corded
electricity requires adequate wiring,
pushing vigorously this aspect of our busi¬
are
good year
a
Ritter
modern
of
use
of
en¬
our company is the.
fine preliminary reception ac-:
ary.
policy of
the
and
optimism for
very
we
will be considerable and
lent
for
distributors, and
policy have been encouraging,
respect to air conditioning and gas
Results
thinking that the demand for all classes of bonds
thus prices could remain rea¬
for
favorable
We expect to continue our present
tive promotion
with manufacturers,
Cor-
possible
is
sale
medical equipment.
-■
,
forecasts
our
1955 should be
and
manufacture
the possibility of
heat source in electric gener¬
a
exceeded
to believe that
us
the
for
fund part of this loan.
may
great amount
a
courage
1954
of
financial
current
of the terrific
bonds, they too
The fact that there is
could do likewise.
months
requirements for construction
being met through an open-end credit with a group
are
of
as
SHUMWAY
The firm tone and pace of new orders received in
investigating
are
using atomic energy
ating stations.
RITTER
F.
.President, Ritter Company, Inc.
last
"
this
To effect this result, the yields on Govern¬
ment securities could possibly increase to slight degree.
This could mean that Corporate bond prices might follow
in
being liquidated; and the retail merchants havo,
reported a good Christmas season.
tories
money
trends.
visible
our
budget for 1955 may be as high -as
"porate and Municipal bond prices. It seems that at the
present time one of the primary interests of the Govern¬
ment is to continue their excellent control of inflation¬
ary
on
■
with $82,000,000 spent this year.
will be used to expand electric
generating facilities, to construct electric substations
and to reinforce our distribution system in anticipation
Most of this
the market trends this year is a
to
side.
compared
$95,000,000
Averages
the market is high, at least
historical
of
which indicates
404.39
at
were
Walter A. Schmidt
feature
prevail, the effect
patterns
the plus
on
construction
Our
Partner, Schmidt, Poole, Roberts &
President,
weather
normal
load will be
Thursday, January 20, 1955
...
.
of
the
big inven¬
onds.
During
1955
we
shall put into operation a new
Continued
on
page
108
Volume 181
Number 5396
.
.
The Commercial and Financial Chronicle
.
Continued from page 105
lion
bushels, against 38.1 million
the previous
lion in the
The State of Trade and Industry
England, 'down
21.
The Mountain
change
no
week.
15
States
from
Mixed
to
the
trends
from
the
East
North
while there
the
Central
was
Middle Atlantic
Wholesale
Strikes
Food
earlier.
The
278.70
Jan.
278.61
food
&
price
$6.81,
»drop
highest
wholesale
Jan.
level
11
in
with
to
corresponding
Higher
in
past week
wholesale
potatoes,
clines
oats,
the
steers
and
hams,
lard,
oil
index
lambs.
in
occurred
butter,
and
coffee,
represents
use
its
chief function
to show the general trend
prices at the
for
a
week ago.
with
of
advances
against
sales
recent
of
mostly quiet
was
as
bought sparingly in view
8.2 million ton quota set
1955.
rapid
re¬ 'the
for
Demand
lard
accumulation
next few
in
stocks
of
weeks
due
to
pros¬
mixed while prime fed steers
continued strong and active with
was
10
to
prices reaching new highs for the
cents for better grades influenced .past two years.
Cattle receipts
by limited offerings.
Trading in were down slightly from the pre¬
all
is
grain and soybean futures
the*
Chicago Board of Trade
week totalled 45.2
sales last
wholesale level.
a
Spot cotton prices moved over
fairly wide range in fairly ac¬
week
sharp
included
factors
in
break
securities
the
quota¬
continuing decline in
the rate of CCC loan entries and
tions,
the
that
indications
TRUST COMPANY
Paterson and Passaic,
i
According
unchanged
was
like
siderably
the
a
ago.
year
bought
more
beef
prior week, but lamb
pork buying was lower.
Wholesale
the week
tinued
Were
buying
as
to
many
increased
merchants
replenish
index
depleted
nificantly
higher
reported
markets
improved
1955,
volume
than
last
Widespread
were
in the past
the Federal
(Special to The Financial Chronicle)
price
MILWAUKEE,
Danielson
in¬
riod
on
ended
13%
Jan.
a
from
that
prior
With Continental Sees.
(Special to The Financial Chronicle) '
MILWAUKEE, Wis.—Robert A?
was
registered below that of 1953.
loss
a
of
is
Martin
recorded.
was
1954
and
First Wisconsin
Company.
of
the
year
with ,the
decrease of
the four weeks ended Jan. 8, 1955,
increase of 8%
Danielson
Mr.
Milwaukee
of
thereto
the similar period in 1954, and for
an
J.
& Co., 229 East Wis¬
Avenue.
merce
1955
In the preceding
week, Jan. lj 1955,
1% was registered
John
affiliated
foriherly with Bank of Com¬
was
the like pe¬
from
last year.
8,
—
a
taken from
as
Wis.
become
has
with Bache
consin
sales
Reserve Board's index
week
advanced
oi.
at
year
two weeks.
store
country-wide basis
the
from that
Joins Bache Staff
Department
for
the
1954
year
1%
8a
re-,
was
a
Although trade was generally
slow in textiles, order backlogs
in cotton goods were sizable, and
there
whil-Y
1953.
this time.
creases
the
For
advanced
index
1953;
weeks ended Jan.
increase of 5%
an
ported.
sig¬
in
week
for the four
'
orders,
In the preceding week, Jan.
similar
the
retail
Observers at apparel and home
furiuaiung
t
1, 1955, a decrease of 4% (re
vised) was reported from that ob
con¬
heavy
by
period ended Jan.
weekly
year.
which
trade in the last part of 1954.
New York City foi
1955, registered an increase of
5% above the like period of las
in
stocks
year
a
Federal Re¬
department
the
to
Board's
serve
store sales in
above
period
Continental
The
with
Securities
1%
Corporation,
No.
5855
Shoreland Avenue.
ago.
Bearish
AND
volume
15%f4J
approximating
the
tive trading the previous week.
.Closing prices were slightly under
mil-
a
COUNTY BANK
Food
New
regis¬
week
past
according to trade observers
ago,
For
was
Daily average
moderately active.
of food
of
in
volume
the
City
from the previous week and con¬
vious week.
on
gains
ahead
was
pects of continued heavy hog re¬
ceipts.
The trend in hog prices
Cash
3
steadier tone
generally slow with prices work¬
ing lower.
Traders looked for a
buoyed/to
was
the
of
malting barley markets strength¬
foodstuffs and meats in gen¬
eral
an ex¬
continued light
finished below
sum
raw
refiners
ceipts but the market reacted un¬
der free prof it-taking ,and prices
total of the price per pound of 31
and
extent by
ened
the
Corn
volume.
a
continuation of dealer
a
market
sugar
in domestic flour busi¬
early in the week.
Export
some
.corn,
hogs.
buying following
market
actuals to manufacturers. The raw
support
some
developed
by
coverage
mar¬
trade in wheat continued in small
De¬
wheat,
aided
a
pansion
were
cottonseed
The
from mill
ness
cost
received
Wheat
1953
flour, rye, barley,
beef, tea, cocoa, beans, peas, eggs,
in securities
Cocoa
of
kets, tended to depress prices.
a
when it stood at $6.25.
of
coupled: with
and
easy, with buying sup¬
port
discouraged
by
continued
£imple supplies.
addi¬
areas
butter
spot
tered
Although heavy appliances
were
bought infrequently, sales
of laundry equipment improved.
than in the
February
trade
goods and upholstered furni¬
Housewives
continued
irregular
as
The
Retail
York
ture.
and
through
March.
curtains,
and
popular than
wheat
Winter
hard
china,
were more
both
in
flours.
coverage
year ago.
drought
sharp reaction
the current figure shows
3.1%, but it is 9.0%
the
at
predictions
and
many
Southwest,
the
five
$7.03
in
snow
a
were
uncertain
rains
tional
of
above
.
for
Compared
year ago,
week
index
the
weeks.
a
Bradstreet
markets
trends
with
closed
and
place
Takings were well distributed
among bakers and jobbers which,
in many instances, extended their
Jan. 4, and 275.65 on the
on
Grain
-A rise of 6 cents last week lifted
Dun
index
Spring
11, compared with
corresponding date
Index
Highest Level In
Five-Week Period
the
on
took
bakery
substantial
cwt.,
per
bookings
week
a
last
As the result of mill pro¬
more
or
slightly higher level than
dip in
States.
Price
Week
price index, compiled by "Dun &
Bradstreet, Inc.," kept within a
narrow range the past week at a
States,
marked
a
in
occurred
improvement
Lamps,
draperies
case
showed
concessions amounting to 10 cents
wholesale commodity
The daily
business
tection against advances and price
Range the
Narrow
a
Past
1954
with fewer. The most notable
up¬
year
to
previous
from
appeared, with four regions hav¬
ing heavier casualties and four
swing from last
Held
and 47.4 mil¬
week last year.
flour
considerable
Wholesale Commodity Price Level
showed
week
same
Export
week.
New
107
(363)
•*
Organized 1888
STATEMENT OF CONDITION,
next sea¬
allotment.
acreage
shipper demand
were
Cash
fairly
and
Loans and Discounts
reporWi^at 1,673,000 bales.
and
.
.
.
.
.
.
.
.
12,574,650.73
5,238,079.25
22,516,662.54
Banking Houses, Furniture and Fixtures—Equity
#^ti^ity;.;|hj^textile markets inftiaSPWeek
20,178,155.03
.
Other Bonds and Securities
~
kinds of cotton
$10,154,818.06
.
State, Municipal and Other Public Securities
fixing. •- GCC loans outstanding on
1954-crop.Icotton as of Dec. 31
were
Hand and Due from Banks
on
TJ. S. Government Securities
active domestic and foreign price;
DECEMBER 31, 1954
ASSETS
Helping to sustain values
good
TRENTON, NEW JERSEY
attempts
new
would Jbe made to raise
son's
New Jersey
•
Trenton Trust Company
Other Reti'l Est&te Owned, Net
prices for
cloths
.
.
.
.
.
.
A
'
^
1.80
297,227.33
.
Accrued Interest and Other Assets
gray
(
1,014,685.93
'
'advanced.
$71,974,279.87
Resources
Trade
$95,270,109.28
Volume
Marked
In
Week
Latest
LIABILITIES
Recover/ from
By
i
Post-Holiday Lull
BOARD OF
week
....$11,893,447,41
U.
s.
Government
Slote
and
Other
Bonds
and
loons
Mortgage
Insured
First
Bonking
Guaranteed
....
Furniture
9,38^486.7.1
..
J|
f|
I4,988,147.23,>
|1
-
1,291,862.57
||
300,897.76
Fixtures
and
J'
-
||
354,835.11
Receivable
"§!
257.574.85
Income
Other Assets
iri
'
JOHN F.'EVANS '
r
Evans, Hand and, Evans
23.773,172.79
.
loans
%
_
V
•
y
■
Pla6£ Machine Co,
JOSEPH C. BAMFORD
Watson
„
*95,270,109.28
Amounts shown are-net, after
ing.
Standard Bleachery and
Printing Co., Inc.
Treasurer,
Warner Woven Label Co.,
.
Inc.
HORACE C. LOCKWOOD
New Era
LIABILITIES
ft
Reserve for Taxes, Accrued
interest.
Discount
Expenses,
Common
Earned
579,567.68
—
j.
1
m
$1,500,000.00
Stock
Profits
.....
•
,'
w
' ■■
Alexander Summer Co.
.
,
JOHN W. OLIVER
2,336,081.76
,
$95,270,109.28
Total
M
In addition to the above, assets
Trust
held in the
Convenient
N.
J%
N.
Southwest
+4
-
-
*
J,
-of
•
the
country
County Bank
level
higher
.
.
/ T
.
.
.
.
.
.
.
...
996,740.96-
.
234,419.21
Preferred Stock Retirement Fund
875,000.00
S.
obligations
Government
other
and
securities
carried
$2,8fi<UMMUM) in the foregoing statement are deposited to
secure public funds and for other purposes required by Iaw..„_
Preferred
Retirabie
Preferred
Stock,
at
"A"—54,783 shares,
Class
$20.00 per share and
value $0.00
par
per
Retirabie at $1-00,00
share.
per
share.
accrued dividends.
Stock, Class "B"—20,000 shares, par value $20.00
share and accrued dividends.
per
Common Stock—28,000 shares,
value $10.00 per share.
par
DIRECTORS
BOARD OF
Mary G. Roebling
President
Chairman
and
for
a
at a much
in
1954.
particularly
increased.
in
Corporation
-
the
same
Sales of children's
week of
boys' wear,
Men's suits and sports¬
darker
colors
were
.
were
satisfactory last
Although sales were much
several
weeks ago, they
generally
below
I. D.
above last year at this time.
>
Board
Presideni, The Luzerne Rubber Company
Tattersall
The
the Board
Charles M. Jones
Vice-President
M. J.
Company
Alan W. Bowers
Setiior
of
The John A. Rocbling's Sons
Harry J. Bodine
President,
Gindhart, Jr.
Chairman
of Managers
The Trenton Saving Fund Society
the
Corporation
McHugh, Jr.
Edward D. Parsons
Vice-President
Real
Df. John G. Conner
Estate
Samuel Swern
William C. Ehret
President,
William C.
Hudson T. Winner
Ehret
President
J. Conner French
Winner Engineering
Counsellor at Law
in
Promotions of home furnishings
wefek.
Board
Standard Fire Insurance Company of N. J.
pruce Bedford
of
Corporation
MAIN OFFICE
greater demand than a year ago.
were
the
Dr. Willard H. Allen
Chairman
resort wear were
than
oi
Secretary of Agriculture of New Jersey
accounted
apparel,
wear
400,000.00
.
1,544,000.00
Undivided Prdfits
most parts
popular and furs sold
COMPANY
Member Federal Deposit Insurance
'
328,698.00
:
.
.
Reserve for Conlingencies
■
that cruise and
TRUST
.......;
.
Surplus
+8.
to
improvement over
preceding week in 1955 oc¬
large volume of sales in women's
shoes, coats, dresses and lingerie.
Many metropolitan areas reported
ANO
40,000.00 <
280,000.00
greatest
Clearance events in
,
PASSAIC,
by the following percent¬
Midwest 0 to +4; New Eng¬
curred in the Midwest.
11
Department total $21,688,680.79,;
21,913.20
'
.
.
'
The
Offices
PATERSON,
was
Bradstreet,
Inc.,"
larger than a
&
South and
the
5
.
;
Preferred Stock—Class "B"
+ 1 to +5; East, Northwest,
Pacific
Coast
-f 2
to
+6;
and
7,336,081.76
Funds
"Dun
land
Vice President,
Capitol
' .
'
Preferred Stock—Class "A"
;
.
.
Capital—
estimated
the week
in
ages:
•First Vice President
Linen Thread Co., Inc.
Total
.
$71,974,279.87
levels
NORMAN BRASSLER
Counsellor at Law
Payable—s
at
Regional estimates var¬
ied from the comparable year-ago
-President,
-
some
new
year ago.
Company
WINTHROP WATSON
3,500,000.00
Surplus
Undivided
M
W-
and
to be from 2 to 6%
*
ALEXANDER SUMMER
461,247.70
etc
248,846.03
Collected, Not
liabilities
Other
Falstrom
1,063,329.97
.
Preferred Stock—Class "B"
U.
by
Manufacturing Co.
President,
$88,644,366.11
reduced-
more
household
Sales of
trade
CLIFFORD F. LINDHOLM
...„
.
.......
The total dollar Volume of retail
President,
Deposits
.
ago.
H. STEWART WARNER
deducting
Valuation Reserves
/
apparel,
*'
Executive Vice President
§f
bought
linens, WinteF
Spring cloth¬
automobiles re¬
mained moderately above a year
price
COWLES ANDRUS
ARTHUR G. POOR
Total
.
Preferred Stock-Class "A"
the
They
■
McBRIDE; Jr.
Physician
0
etc.
Common
.
•.Trustee
ANDREW F.
'Dividends
lull;
period ended On Wednes¬
day Of last week than in either
the
previous' week or the cor¬
responding >period last year.
,
CHARLES C. KING
Comptroller,
the post-holiday
$66,190,178.53
Unearned Discount, Accrued Taxes,
shoppers spent considerably more
,
President
341,900.77
„
Houses
Accrued
c. Kenneth fuller
9,431*986.48
...:
,
Discounts
and
23,254,597.60
.j..'
Obligations
Securities
—.
or
Mortgage
loons
Obligations
Municipal
from
•
.
Deposits
the past
Retail trade recovered
DIRECTORS
**
'
28 West State
MERCER
Broad and
BRANCH
Market Sts.
Member Federal Deposit
Street
COLONIAL BRANCH
Broad and Hudson Sts.
Insurance Corporation
■*
(364)
108
The Commercial and Financial Chronicle
Continued
from
*
avoided
106
page
that will assemble practically
automatic production line
entire TV chassis.
an
One of
we
Automation is that
the greatest advantages of
able to control absolutely the quality of our TV
are
Any chance for human error is eliminated.
Furthermore, it is now possible to make a unit check
production.
of the chassis.
section
This
that the entire printed circuit
means
tested
be
can
at
time
one
as
single
a
entity,
thereby eliminating from 25 to 30 other checks.
Automation also has made possible at 92% reduction
in the per square
Our first
1947.
first set
our
introduced
was
sales
should
the
add
&
figures,
to
all, I
Act
What
of
1938.
optimistic about the oil and gas in¬
am
1955.
I
expect
h.
oppor¬
want?
we
in
States
the
in
1955
economic
will
depend
conditions
SMITH
to
abroad.
the
measurable
a
From
domestic
important
United
degree
legislative
a
prosperity,
issue
for
on
stand¬
the
most
Congressional
of
host
statistical
of
in¬
to
cess
better information
even
organization
is
foreign
is
President Eisen¬
economic
program.
stability.
than
of
increased
their
pulse of the American
public at the
beat.
With the exception of only an
isolated
average
about
the future
confidence
personal
less
no
American's
is
and
will
resources
and
of
one
Alexander
'
that
trade
the
as
will
concerning the
to
accrue
result
a
of
other
these
trade
.
among
our
own
opposed to
reduc¬
a
it quite this way.
see
cause
They
severe
ceed
gradually, cautiously, and intelligently with tariff
reductions on a selective and
reciprocal basis;. Addi¬
consumer.
the first six months of 1955.'
sary.
But such adjustments have been'successfully made
past not only when required by
fVeijp>-eenTpe^
tition, but also when the cause for increase"competition
skelly
the
in
It
year.
must
willingness
I
too
am
be
to
in
so
an
optimist but
an
I
risks
also
am
of
As
In
that
realistic and keep
problems at hand
ous
Accompanying
pect.
the annual
demand
to
which
geared,
the
oil
in
not
pros¬
our
to
pre-proration days.
forty
old
years
man
ago
the
of
.
mechanisms
the
to
carefully
ration,
manned
in
powered
conserve
designed
states
most
settled
by
oil
two-score
law,
when
avoided
was
economic
conditions
the
and
threat
of
justify.
increased.
compel
the
prevent
As
result,
a
real
discontinue
to
us
must
we
measures
attainment
the
among
of
free
stronger
nations
and
the
of
keep foremost in
our
minds
as a
the
whole.
will have in
strengthening ;the posi¬
underdeveloped
areas.
Since the termination
of active hostilities in Korea and
elsewhere, these under¬
developed
Communism
The
good.
have
areas
and
basic
become
the
freedom.
economic
■
outlook
batleground
between
dent's
foreign
economic
economic
outlook
in
1955
is
for
will
program
America
and
for
strengthen
the
world
the
as
a
McGregor
smith
was
President, Florida Power
of
and
progress
(T- think 1955
is'the
has
been
1954
was
a
In
year
profit.
to
curbed.
better
year.
The
over-production
basic
of
orl
crude
O.
I
In
value
mission,
Chairman
which
that
of
administers
the
Texas
but
a
I
conservation .in
that
pany
:
high
Not
in
has raised
mature
as
sure,
year
to
as
that
that
we.
1955.
have
its sights
ing
clear sailing.
will
There
be
are
I
reason..
know
that
to
all
and
that
com¬
pre¬
hope to- shoot
we
reefs
skies,
ahead
calm
but
seas
they
can
and
be
generating facilities
was
made
at
the
«
Riviera
_
increase
—
Miami
wealth
is
of
and
the
and
other
ele¬
development of
business
with
its-'corre¬
in
permanent population.
The State's population
development, past and present,
and studies of its causes give promise of a
population in
of
5
million
increase
an
territory
by
in
1960, against 31/2
the
permanent
million
population
is privileged to
million today to 2l/z million
by 1960.
our
company
today,
of
the
from
serve
IV2
rudolf smutny
Senior Partner, Salomon Bros. &
Hutzler,
New York City
The
'
balances of the commercial banks are the
basis of our credit system. The most
important factors
which increase or reduce reserve balances and thus ex¬
pand
reserve
contract credit are—changes in
by the Federal Reserve Board,
borrowing by the member banks
or
reserve
require-
Banks
must, of necessity, keep a
Rudolf
large volume of bills on hand in or¬
swings. Many
Smutny
der to cope with their daily cash
tions keep their tax accruals in
corpora¬
•
ments
from
the Federal Reserve, and open
operations
by the Federal
Reserve
lieve,
to
Banks.
open
be
The
the
exclusively
in
bne of
industrial
and
tions^-rrrrrv4dtheir
financial
cojTporaliquidity.
liquid assets.
need
constant
for
effect
for
in
bills
As
a
short-term
mand for
Hence,
when
market operations in
have a pronounced
<•
✓
and
them
use
maintain
to
their
result of this pressiong financial need
there is
paper
large and constant de¬
a
Hence, when the Federal Re¬
market operations in the bill market
conducts open
does, have
reliance
market
bills.
Treasury
Treasury bills.
it can, and
This
to
yields.
on
accruals
serve
them
use
a
short-term
for
demand
bills and
result of this pressing
paper
there is a large
As
the Federal Reserve conducts open
the bill market it can, and does,
tax
.
of/the'
Through it financial
money market.
maintain their
in
Treasury
important segments
institutions
of
Banks
Now the bill market is
most
and
light
marketV^perations
open
deal
bills.
the
in
experience?**
Federal
ResenM
conducting
now
Right now, I be¬
market operations ought
re-examined
recent
operations
pronounced effect on yields.
a
bills
on
is
as
the
doubtless
sole
due
vehicle
to
for
respect
open
for
the
traditional
Anglo-American central banking practice of
operating exclusively in "the nearest thing of money";
also, perhaps to a fear of even seeming to sponsor any¬
thing remotely resembling the discarded "pegs."
ever, under present circumstances open market
tions
do
not
lagged, and
changed.
appear
the
level
of
bank
How¬
opera¬
achieving
fully to be
The volume of bank
the desired
has
consistently
loans
rates
has
remained
un¬
Many
corporations have cut down on bank
built up their emissions of short-term paper.
loans and
Therefore, when "the nearest thing to money," is in per¬
relatively short supply, and when open mar¬
ket operations in bills in pursuit of a policy of "active
r
to
be
the
expenditures
unit
This will
on
then be the
In 1951
in
Florida.
we set
up a
something
arbitrary increase in the supply of bills is not the
I think, rather, that it is to be sought in widening the, scope of open market operations to include secu-
\
An
•
than Treasury bills.* To" this end the Federal
use its
authorization ?to buy and sell in
;
should
maturities, ih
instance, of up to one year, and should this
ineffective, af%r suitable trial, then be authorized
operate up to \iree years. After all, the amount of
first
secur;f:
js
within
due
one
year,
other*
•
..
•
than
,
bills, is far larger than the entire Federal Reserve portsecurities.
* *
^ v.-
..
folib of Treasury
I do not believe such
operations would
do
a
to
pressure
McGregor Smith
-
ten-year expansion program which
on
the bill rate.
I
.
'
liberalization^ofrqpen market *y
violence
*
the51 traditional central ;
banking practice of operating solely in. "the nearest thing
to money."
At the same time it wouldvreduce undue
largest
the company's system. These
business
that
answer.
Treasury
ap-"
our opinion as
rapid expansion of
surmised
,
the
expenditures reflect
the continued
be
the bill market is needed.
prove
proximate $41 million, including the
140,000 'kw. addition of the Cutler
Plant.
may
the open market Treasury obligations with
biggest
will
it
com¬
the volume of loans
more
to
1955
merely resulted in declines in bill and
than operating in
Reserve
far in the company's history.
year so
unchanged,
/rities other
will
; '
expect
-Construction
to
blue
total
80.000 kw. addition to its 160,-
an
We
expect-*
my
a
estimated $39 million includ¬
an
Miami.
state,
(how.much it would be
at this time)
we
aim.
say
1955
sound
least
At
stimulate
to
tourist
mercial paper yields while leaving
Light Co. spent
000 kw. Cutler Power Plant
south of
a
am
better
cost
Railroad .Com¬
recent increase in demand for petroleum
has brightened the outlook and that the
present situa¬
tion is the best ever to face the
industry at the be¬
ginning of a new year. I am not sure that I go that'far
says
&
Light Co.
on
the expansion of its
generating trans¬
distribution facilities.
An 80,000 kw. in¬
and
in
Power
^.the company's system facilities
•
Thompson,
the Florida
&
.Power Plant just north of West Palm
Beach.
iFor 1954 the expansion of
reason
addition, economists whose opin¬
predict a renewed upward trend of con¬
sumptive demand. So able an observer as Gen. Ernest
ions
1953
crease
be a
which
can
degree
whole
combined
year-round
ease" have
of $33 million
a
of
scene
sistent and
Thus waste
mission
As
have
objectives.
America
whole.
what
been.
ments
-
for
It is my conviction that enactment of the Presi¬
gradually met. Disturbed product prices at times and
places reflected the disturbance of crude oil equilib¬
rium, but at worst this was but a mild suggestion of
might have
transportation
the
ciently large to take vacations—all these
liquid assets.
policies
ignoring the problems of domestic ad¬
a
gradual lowering of trade barriers
which
tion of the
and
over-production
Their final effect is
economy.
be
economies
Without
economic
principal oil states severe restrictions were imposed,
wisely and well. Oil was kept in the ground for pro¬
duction
Economic
regard is the effect these
commissions adequately em¬
came
to the rescue.
In the
by
new
techniques.
for
welfare of America and the other free nations
Of special importance in this
pro¬
years
to
require,
may
over¬
through equitable
over
tend
justment
production,. had climbed on its back
and again, depressing prices
almost to vanishing points and creating
grave
maladjustments.
But
Skelly
production
Committee
of
the average, higher than before."
interests
world.
again
W. G.
will
own
stable
more
Twenty
crude oil
productivity
which
cre¬
the oil industry's
sea,
introduction
reduce average American
wages, but to increase
For after the adjustments have been made
Our
ated, for the first time in years, an
over-produced
condition
reminis¬
cent of
the
of
of the American
wages will be, on
industry was
of crude
had
the
modern
more
report
situation has often arisen
a
of
...
surge
1952-53
to
them.
comsumptive
the
result
"though these adjustments may at
painful, they are one of the sources of the dy¬
times be
slackening of
upward
production
in
and
a
in
increase
recent
namism
spirit I look toward 1955.
year 1954 opened with obvi¬
The
the
a
Development states,
sharp watch for rocks in the road.
a
the
country as
products or new
new
a
where a hopeful
is indispensable.
industry
calculated
take
beginning
the
at
domestic in nature. Such
was
President, Skelly Oil Company
optimists
lor domestic producers as a result of
will make certain adjustments neces¬
increased imports
in
are
of
of
market
are
lowering of these barriers will
a
tional competition
men
hours
population of the nation—the national increase in paid
vacations, 30 million man weeks in 1941 to more than
60 million in 1953; the
expanding relative size of that
segment of the country's families having incomes suffi¬
direction.
same
said
rising standard of living
a
) Our company is measuring this confidence with the
largest sales program in the History of the company for
Oil
3Vz
and
hardships for many Americans. Of course, such hard¬
ships must be avoided wherever possible, and I believe
can be avoided
if, as the President recommends, we pro¬
year—indicate better than
words this confidence. Our managers at the regular sales
meetings being held this month of January emphasize
w. g.
convenience
within
only be
can
pointed out
tion in trade barriers do not
new
optimism of the American
greater
.
fear that
■
Strong retail sales during the Christmas period—which
have continued into this
be
in
been
Many sincere Americans who
be
'
.
to
.
growth and
people."
definitely better in the
period ahead.
international
the path
that, to use the
word,
an increasing volume of world
production and trade will help assure our own economic
his
certainly
needs
President's
feeling
that
has
benefits
Smith
It
measures.
strength,
assurance
these
towards
Our efforts
sights
countries
spot or so, the general tenor
of
George L. Smith
H.
moment of its economic heart¬
the
10-year
rapidly increasing knowledge of Florida's supe¬
climate; the continued increase in speed
really fruitful if other nations train
Much
very
path
large measure,
in
investment.
the
feel
The
goals is,
nationwide,
border—we
expenditure on construction for the
period has been increased to $410 million.
excess
operating stores from coast to coast,
to
estimated
and
on achieving the largest pos¬
degree of economic and social
and
border
In October of
pendent
straight line business indices suggest.
Our
greater increase than that of any ;
a
union, excepting California.
last year,
therefore, we revised our ex¬
pansion program materially. We now plan for a system
capability of 1,662,000 kw. by the end of 1961 and the
sible
with
economy
the
sponding adidtion of good year-round jobs and resulting
economics
The political stability which we all
mathematical
precision, the chain retailer has ac¬
our
This is
other state in
tional
hower's
the basic strength
measures
April, 1950.
Florida's
desire in world affairs is greatly de¬
this
According to the July 1, 1954
consideration in the field of interna¬
and analyses that we have
statisticians and economists,
retail market in the next six
While
original anticipations.
estimates of the Federal Bureau of the
Census, Florida's
permanent civilian population has increased 707,000 since
now
the economic outlook for
statistics
strong
The population development of the state has exceeded
our
rior year-round
smith
Senator from New Jersey
past,
with, by
very
a
an increase in system capability from 502,000
1,405,000 kw. by the end of 1961, at an estimated '
expenditure on construction of $332 million.
to
and
U. S.
As
our
L.
formation
I
of competitive
year
alexander
months ahead.
the
a
could
more
Treasurer, G. II. Kinney Co., Inc.
bombarded
up
in
Gas
point, after assuring ourselves of the basic soundness of
President
All
Natural
Thursday, January 20, 1955
..
anticipated
The
exceed
GEORGE
been
a
hon.
field.
this
production
is
tunity.
10,000,000 in the year
ahead. The outlook for appliance sales is stronger than
ever and we expect to continue to
improve our position
in
gas
of gas is not a public utility but
competitive private endeavor like the pro¬
duction of coal, wheat, cotton or
any other commodity.
This, in my opinion, is what Congress tried to say in
All
and provided 52-square inches of viewing area
at a cost of $6.73 a square inch. The latest 21-inch Auto¬
mation-produced
Admiral
set
provides
270
square
inches of viewing space for less than 600 a square inch.
set
the
instead
dustry in
years ago
Radio
that
in
10-inch receiver retailed for $350 seven
One vexation lies in the
into
production has been
thrown by the decision of the Supreme Court last June
in the so-called "Phillips Case," placing this important
function under regulation by the Federal Power Com¬
mission as if it were a public utility.
But I am hopeful
that Congress will say
again, this time unmistakably,
the
inch cost of Admiral's black and white
television receivers since
by good navigation.
which natural
tangle
.
think
we
must all
•
concede
that, thus far. the policy of "active ease" has had a much
more
pronounced effect
on
the level of bond prices and the
Continued
on
page
110
,
Volume 181
Number 5396
.
..
The Commercial and Financial Chronicle
(365)
109
,«<«•'
Continued
from
page
Continued
15
from
17
page
Herman
G.
elected
News About Banks and Bankers
The Federal Reserve and
Jan.
on
The Treasury Bill Market
the Bill rate
changed
Federal Reserve
more
if the
active, yet in
was
money market rates became more
variable in 1953 and the first half
other years the Bill rate was more
of
volatile when the Federal Reserve
to
inactive.
was
study
For
changes
example, if
the
in
we
System's
1954, but there does not
have
been
ferential
effect
Only
the
in
appear
markedly
a
on
the
of
use
dif¬
Bill
head
and
Bill
rate
the
more
volatile
was
was
System
inactive
greater
that
during
be
and
ates
the second half of 1951
through 1952, and again in
the
second
half
of
1954;
in
<
the
For
statistical
the
details
the
be
can
that
that
from
seen
the
to "the
all
data
the
not
trends
in
the
noticebale change
behavior of that sector.
common
with
the
of
rest
In
the
oper¬
other
tend
to
maturities,
react
in
so
about
George
the
should
be
added
mittee should
of
rates,
or
longer
different
are
desired.
try to set a pattern
at least intervene in
maturities
if
their
from
those
Such problems were out¬
side the scope of this study.
Boards
mously
Nodyne,
River
York,
Weekly Changes in Selected Federal Reserve Government
Securities' Holdings Compared with Fluctuations in Rates on
New Treasury Bill Issues in the Immediately Preceeding
Week
(average weekly change, in basis points)
Federal Reserve
1.
}.
*;:
.
.029
.025
ant
dent, and Wil¬
liam
L.
Secretary,
Vice
Horsfield has
been
in
the
Se¬
Robert Horsfie*d
He
for¬
was
Company.
in charge of
r,
personnel
s;-.
:J:
appointment of William J.
Assistant Vice-Presi¬
of New York,
was
Jan. 14 by Horace C.
the
fore
had
Avenue,
.039
.025
.061
1953
4.
.058
.096
1954
.067
.058
in
De¬
corner
$391,680
solidated
1952
.040
.061
Roslyn
Company
1953
5.
.065
.103
.088
bank
National)
stock
of
shares
57th
and
$
the
Sit
the
of
of
has
meeting
S.
on
Powers
Jan.
of
11, Clar¬
officers
Treasurer;
son,
wiak,
Assistant
Secretary;
and
Kenefick, Assistant
Donald J.
con¬
Treasurer.
it is
The
annual
statement
stated, showed the banks
total
sources
392,188
E.
Falk,
O. Edwin John¬
Harriet W. Ka-
deposits
$3,816,877.90
reported
are
weeks
during
B.
weekly
which
in
change
selected
those weeks in
.085
$3,467,-
as
543.58.
*
The
:!s
First
*
National
Bank
stock
Spring
Valley,
Y., was announced on Jan. 11
Charles W. Hawkins, Presi¬
Trust
dent, at the bank's annual meeting
Roth,
of
shareholders.
of
$100,000,
Trust
Company at Madison, N. JT.,
under the charter of the latter and
under
Trust
the
title
Company,
effected
as
First
Bank
Madison,
N.
Dec.
Federal
Reserve
item
did
not
change.
10.
"Active"—
changed.
Weekly Changes in Selected Federal Reserve Government
Securities Holdings Compared with Fluctuations in Rates on
New
Bill
Treasury
Week
issues
in
the
Immediately
Succeeding
(average weekly change, in basis points)
Federal Reserve
Federal Reserve
Inactive*
Active*
All Government Securities Including
1.
Repurchase Agreements
1951
.084
1952
.063
.057
1953
.058
.095
1954
.067
.058
1951
.034
.025
1952
.067
.054
1953
.069
.101
1954
.089
.045
Bills Including
Repurchase Agreements
1951
.078
.023
1952
.064
.052
1953
.053
.093
1954
.067
.061
.
•
.023
All Government Securities Excluding
2.
Repurchase Agreements
•
.
,
■
,
r
3. Treasury
i-
•
.
4.
Another
important increase in
availability for the farms,
homes, stores, business institu¬
Treasury Bills Excluding
power
1951
.047
1952
.058
.055
1953
.062
.105
1954
5.
.082
.024
.049
1951
.032
.020
1952
.050
.060
1953
.068
.099
1954
♦Average weekly
weeks-m
which
.055
.068
change in Treasury Bill rate: "Inactive"—during those
Federal Reserve item did not change.
"Active"—-
selected
those weeks in which selected
and
industries
area
The addition of
Federal Reserve item changed.
of
our
op¬
Construction of
watt unit is well
a
tinually mounting demands for
second 120,000
a
tric service.
enables
our
Oak Creek
plant increased the dependable generating
capacity of our system to 1,132,610 kilo¬
watts.
The rapid growth of the Oak Creek plant
is typical of the pace at which our plants
must be expanded to keep ahead of con¬
made in 1954.
was
kilowatt generating unit at
Repurchase Agreements
du-rrog
tions
erating
©RK
third 120,000 kilo¬
us
more
elec¬
Continued investor confidence
not
only to build plants like Oak
Creek but to maintain and expand the vast
network of substations, transmission and
distribution
area
today
lines
.
.
.
necessary
to
serve
this
and tomorrow.
under way.
WISCONSIN
ELECTRIC
POWER
COMPANY
and
J„
of the close of business
Bill rate: "Inactive"—iluring those
which selected Federal Reserve item
was
merged with and into the Madison
.067
in Treasury
of
Madison, at Madison, N. J., with
su
.089
.055
re¬
while
.029
1953
re¬
Sheldon
are:
Vice-President;
.061
1954
-'Average
.023
.049
the
re-elected
was
Other
Repurchase Agreements
1952
Na¬
'
.045
1951
of
changed
Bridgeport.
The election of Charles L. Huls-
Bank
Na¬
Connecticut
annual
Journal"
latter
while
a capi¬
effective
in
Cur¬
First
Trust Company
Conn.,
to
the
that the
reports
name
'
of
elected according to the "Meriden
Be¬
wit, President of Rochland Light
and Power
Company, Nyack,
N. Y., as a director of The First
by
*
Comptroller
President.
$1,350,000.
#
National
T.
The
ence
of
N.
Arthur
*
common
of Dec. 31, by a
Bank;, &
Vice-President and
as
Meriden, Conn.,
(the Meadow
reported capital
$3,921,860
elected
Puritan Bank & Trust Company of
common stock
(par $10
surplus of $4,078,140 and
undivided profits and reserves of
Cox, President of the
National
the
Ber¬
Assistant
Controller.
At
the
each);
jfi.
Louis D.
Freeport.
At
Brook
dividend of $12,240.
.026
of
$200,000.
>
from
.024
1954
Bank
Mr.
was
$
title of the Meadow Bank
date of the consolidation the
The National City Bank of Long
Beach, Long Island, N. Y., reports
a
capital of $403,920, increased
1951
and
Harkness,
as
Controller in 1946, which title he
will retain
Bridgeport,
County), N. Y., was ef¬
Dec. 17, under the char¬
not less than
as
Roth
Ilicksville
consolidation, the
capital of $3,521,860,
of
*
stock
Treasury Bills Excluding
dolt joined the bank
Freeport,
Y.
of
the
a
Repurchase Agreements
.042
N.
tal
Trust
*
1952
Jan. 18 by Earl
President of the bank.
on
rency
the Bank of Hicksville had
Street.
1951
»5 >.
■
tional Bank
Flanigan,
operations at the bank's office
Fifth
i.
tional Bank &
*
Ilicksville
National
Fabry became associated with
741
*
company.
trust
Manufacturers
on
ter and
announced
of
at
they
Office," Mr.
County),
of
(Nassau
as an
.058
.043
and
National Bank of
fected
.097
.090
•
its
Bank
*
.038
Including
National
Roslyn
(Nassau
and
.076
1954
v
the
Brook
has been with the bank since 1941.
Mr.
Herman G. Berdolt
.;;
The consolidation of the Meadow
Pressprich &
Mr. Barton is the of¬
of
Franklin
*
ficer
pany
the
said.
Invest¬
The
to
Treasurer in 1944 and
of
Department.
with R. W.
merly
the
Franklin National." Louis D. Cox,
will be Vice-President in charge
Bank
since 1951 and
is
Office of
Sharing Plans that are now
enjoyed by all employees of the
with the
East River
Savings
the
sion
1953
\
Na¬
Company
be given the same benefits
in Retirement and Profit and Pen¬
1952
3. Treasury Bills
Trust
will
Mr.
cember, 1933. He was advanced to
an Assistant
Secretary in Decem¬
ber, 1951. Mr. Fabry is in charge
.027
&
to the
Roslyn
made
the
Presi-
-
dent.
the
.018
Bank
the
"have been invited to remain with
a s
Assistant
President
1951
tional
of
Comptroller of the
Currency after Feb. 1, 1955. "All
of the employees," Mr. Roth said,
Bar¬
on
Repurchase Agreements
Cox, have been mailed
made
Assistant
.056
All Government Securities Excluding
2.
the
Letters signed by
Comptroller of the Currency. Ap¬
plication for consolidation will be
Vice- Presi¬
.094
.058
unani¬
consoli¬
under
and charter of the Franklin
institutions and
Assistant
.054
.067
the
proval of the shareholders of both
Treasurer,
a s
.062
1954
have
of
banks
announcing the proposed consoli¬
1953
1
their
an¬
their
dation which is subject to the ap¬
1952
:
Directors
approved
that
Assist¬
dent of Manufacturers Trust Com¬
1951
\,
Jan.
10
promotion of Robert Hors-
Fabry
Repurchase Agreements
on
The
Savings Bank, Broad¬
way at 36th St., New York City,
according
to
an
announcement
13 the
Active*
All Government Securities Including
of
of
shareholders
Bank
been
of
Greenwich
field,
Federal Reserve
Inactive*
Mr.
President
Savings
announced
curity
A.
Jan.
on
National Bank.
:J«
ments
TABLE III
nounced
Corp. of Whippany,
O.
East
New
ton,
nothing is implied regarding
other,
broader
questions—
the Open Market Com¬
the
a
market
whether
presented, the impact of the Re¬
serve
System's new technique—
limiting open-market operations
to the Treasury Bill market—has
produced
money
to
smoothly that the shift af¬
fecting Bills are soon communi¬
equal degree.
However, it
VI
As
the
seems
so
other years the reverse was true.*. cated
reader is referred to table III.
change towards
volatility after 1952.
If
a
Bank, Franklin Square, N. Y.,
Suburban
rate.
repurchase
anything, the conclusion
the
name
of
the
of
:j:
have
when
Vice-President, Treasurer
director
a
has
President of the Franklin National
Exchange Place.
sive
been
Mr. More-
dation
of
agreements),
Glover Beardsley,
by
Propane Gas
agreements does there appears to
repurchase
is
N. J., with New York offices at 20
holdings of Treasury Bills (inclu¬
of
13
President of the bank.
Berdolt
Vice-President
SYSTEM
110
The Commercial and Financial Chronicle
(366)
Continued
yields
from
outlook
108
page
short-term paper than it has had on the volume
of commercial loans and the level of bank rates.
I do
not
on
believe
that
modest
a
the
in
increase
a
and
certainly
Most
I believe
be
Company
business, as
the
volume
total
to me that with peace
seems
centives to
higher
for all
As
that
our
than
in
the
that
and
1954
Electric
&
\
1953.
Company
In
tions
•
field/ condi¬
rapidly
changed
during
the
set stocks
had
tion, which .was lagging 30:% at mid*year, .was 30% .larger .in the last half
a
the history of the United
in
higher
The
industry
in
well prove 4,o be the best economic year
very
may
for
reason
have
these
this
basic
States.
optimistic
•
projection
fundamentals, with
us:
of
*
been
we-
7:4
continued,
hand at the end of 195& •"
on.
in
The result
like
the
was
million -sets
Set
off.
worked
than
1954
1953.
is that
a
reflecting the.marked recovery
TV set production once the largo
year,
began early in September, will continue; * If this
true picture of our country's economic climate, then
1955
believe
-
.
entertainment
the
will
pea*
which
standards
living
will be 20%
volume
our
American Gas
1955,
into
resources
business, I
own
prospect that total sales of electronic
equipment and parts in 1955
equal or exceed the. previous
Looking ahead at the nation's economic picture for
it seems reasonable to expect that the basic con¬
ditions of 1954—no war, no depression and no major
boom—will still hold in 1955 and the industrial upturn,
1
people.
our
to
and in¬
technology
our
our
higher
and
President,
a temporary one, and
time there is. a strong
is
enterprise,
transform
can
at the present
in
It
1954.
of
which make up the
have witnessed in. the year just
interruption since World War II in the
industry
first
the
terruption was
SPORN
PHILIP
SPRAGUE
tually all segments of the industry.
However, indications are that this in¬
agree
whole, will
a
20, 1955
rapid growth of their combined output, accompanied by
highly competitive conditions in vir¬
a year ago.
good in 1955 and that it will sur¬
pass
ended
unnecessary.
economists
K.
Thursday, January
thousand, companies
several
electronics
major depression was unlikely
Events have proved me
a
.
President, Sprague Electric Company
that the outlook today is
There are still some signposts,
though, that bear watching. I feel sure that Congress
will keep an eagle eye on developments and will move
fast should the occasion demand it.,
SPATTA
Equipment
JULIAN
no
are
correct.
brighter than
Clark
There
I wrote that the economy showed
year ago,
danger signals, but that
significant effect on
Certainly it could
haraly be construed as a return to the unsound practice
of "pegging" the prices of long-term bonds.
GEORGE
change.
also
course,
The
This time
market operations would have any
the long-term government market.
President,
of
imminent.
of open
area
would,
over-riding indications, though, that a major change in
either the world picture or the domestic economy is
.
.
produc-x
period
•
K. Spraguf
Julian
of
that full-year output came.to about
compared
million
7.2
to
in
1953.
At
cooperation between the President and the Democratic-
retail the picture was even better, with sales to the pub¬
dynamic population growth; many unfilled, wants to be
lic approximately equal to the year's total: production
taken care of, such as more schools, more housing, and'and almost 15% higher than the previous peak in 1953.
more public buildings like hospitals and health
centers,
Giving effect to somewhat lower prices and a public
and, in general, a continuing tradition of a steadily
preference for less expensive models, as well as a mod¬
improving living standard which promises not only to
erate drop in radio set production and sales, total dollar
stay but will quite likely, gain added impetus with
volume of home entertainment products was about 15%
the
new
year.
A firm characteristic of the electric"
below 1953. V
:
utility industry is dynamic growth, but the rate of that
Developments in the field of. color TV were somewhat
growth is influenced by the general national economic
controlled
picture.
which
in
operate will be gener¬
we
ally prosperous.
George Spatta
JOHN
HON.
SPARKMAN
U. S. Senator from Alabama
outlook for 1955 is that there will be
The legislative
.
Congress in many areas vital to the security
There will, of course, also be
occasions
of
deep
sincere
and
dis¬
and
believe, substantial
legislative needs
relating to foreign affairs.
It seems wise to ratify, perhaps
with
I
is,
agreement
changes, the Mutual De¬
with the Republic of
China, and the Southeast Asia Col¬
lective Defense Treaty. It is impor¬
tant
Treaty
to
our
welfare
own
and
kilowatts
be
Ratification
with
treaties
nomic and
proper
eco¬
A.
this aim.
John
Sen.
Legislation
will also be approved
to continue on a modified scale eco¬
of
the
generating
year,
capacity .which
that the
so
somewhat in
was
non^diversified
kw
Sparkman
in
1954.
reached
year-end
demand
Thus, during the
sales close to 410
to other parts of the free
For
it
1955
This Act expires on June 30 of this year.
crease
is essential to
renewal
well
our
confident
period. Its
am
three-year
a
own
I
Other
programs
will
be
economic well-being as
relations
the
I
%i
Iron
friendly nations
Curtain;
support
well
as
the
of
as
United Nations;
and
Congress
will
support
that recommended by
it
j
is in the
will
program
than
even
the President.
of domestic
area
differences
est
stronger
a
be
legislation that the sharp¬
Democratic* leaders
of 9.5%
is true of any further disposition of the
same
natural
Congress
resources.
evenly divided in its views
As
little
likelihood
through
The
ports
on
to
the
whole, though, there
a
any
there
legislation
in regard
to the price
family-sized farmers, other than
appears
seems
to be fairly good.
On the
to be little chance for major
to
expect
an
building
program,
for the
and
a
continuation
adequate home building program.
If any
now.
leaders
will
emption
and
in
they
tax changes are made, the" Democratic
push
hard
for increases
the corporate
tax
in individual
structure
to
ex¬
benefit
particularly small business.
ever„
a
seem
just what
Congress will enact. The views above, howto
me
to
be
the
current
sentiment
in
the
major fields of possible legislative action.
Should
the
world
situation
domestic economy show
a
of
and
,
.
.
sales- of
energy
would
represent
in¬
an
in which the utilities
so
are
generating capacity
well
may
than
proceed¬
or
the
condition
A
.
item
second
picture
-These
horizons
the
are
of
brightness
the
in
electric
technological advances that
power
are
by the conventional
and
means
in
service
and
in
1954
requiring
with
less
thermal
a
than
7/10ths
for the production of
a
pound
a
of
A-
-
drastic change, the legislative
markets
pressures
computer.
million
prices, although it is too-soon
sets
there4
as
market for
a
was
last
year.
Assuming
thaL the
it
ever;
at< least
public^wilL purchase
than,
more,
-
black-and .white.sets plus at least 200,000: color
6.5-7.0
million
sets, how¬
probable that dollar volume in the enter¬
seems
of
units
which
will
to 5,000 pounds-per
up
operate
at-,
year
inch, * in
square
ranging.in size from
"
good
a
third
1954
year
saw
considerable
implementing the reactor development program of the
Energy
Commission
competitive electric
number
of
to-bring ("about
utilities
are
actively
very-
be expanded and
a
'
program.
significant development of the
placing into service of
a
high-voltage
American
during the two
ing capacity to
Gas
power
Electric
&
and
an
and
1953
stations
UHF.
be added
in
a
two-year
In the next two
interval
years
570,000 kw. will be put into operation.
history-making
supercritical
the
an
by
also
a
growing
1.2
equipped, and the number
year.
Finally,
still coming on the air in both the VHF
now
more
-356- at the beginning of 1954.
color
increase in
total
a
likelihood
of
some
gains in industrial elec¬
tronics, the industry can look, forward to a resumption
of growth in total volume, in both end equip¬
and
voting
component* parts.
a
leading
manufac¬
components,.Sprague Electric Company is de¬
a
larger percentage of its sales dollar to the de¬
of
products
new
particularly in the
new
and control systems,
look forward with
steam-electric
As
of
a
This in¬
so
defense production, and further
velopment
addi¬
a
probable beginnings of large-scale
production,
added
unprecedented block of generat¬
than,
approximately
bands, with, the total in operation
System
were
more
Adding to the favorable outlook for black and white
this year
Company
are
already
than 420 compared to
ment
1954, there
is
sets;
increase-significantly this
new
turer
years,
private utility system.
the
scope
transmission.
There
third
is expected to
the
considerable number of
330,000-volt transmission lines to improve the
economies of
was
and
are
television
v.
replacement.
second
million homes
set
year
for
-
co¬
greater segment of the industry will
cooperating in the
including the fact that
million*TV*sets in-use at the present
than three years old and are thus good
more
and
generation from nuclear fuel.
power
electric
designed
are
market-for
made' in
progress
one,
of^the 33
candidates
tional
to expect
reason
•
time
the
complicated control system Or
•
coal
275,000-300,000 kilowatts is further evidence of this vital
On
electronic
-•
whether there will be
say
- seven
singlevkilowatt^hour;;
the so-called supercritical zone, and
Another
unlimited-
entire
the
lion.v.A.number of factors will contribute to making the-*
The
be
of
or
area
projection
1955.
A
years
defense produc¬
or
virtually
open
inventiveness
tained at relatively stable
to
>
ness
the
home entertainment
newer
the
to
1954, and the next 10
rapid rate of growth in this
tainment; field will approach the 1953 peak of $1.6 bil¬
steam
Atomic
account
efficient plants will be placed in service ink,
more
The
to
that sales of black and white TV sets will be well main¬
efficiency of :37.5%
of
1954
^Turning to 1955, I believe there is
-
vbeing
by nuclear i methods.
in
industry, from the supplier of the smallest component
projected in generation and transmission -ofi power, both
cludes
of
see a more
either
in
tion.
added in 1954,
was
continued
defense
electronics continued in
.
..
materially brightened by the vigorous
manner
1,075,000 kilowatts,
Of course, no one can predict with accuracy
legislation
These
for
approximately one-half the industry volume, alhough value of total output for this vital purpose seems
to have been slightly below 1953 also.
On the other
hand, lin 'the light of a very marked drop in overall
defense spending last year, .it seems evident that mili¬
tary electronics accounted for a larger proportion of total
expenditures, and it seems entirely probable that this
trend
will
continue r in: 1955
and
subsequent years.
Growth in industrial', and commercial applications of
electronic
actual
The tax laws may very well remain the same as
are
demand
a
per
for
energy
operating in it, and in 1955 this work undoubtedly will
There is also strong sentiment for
construction
Electronics
generation
energy
color sets
set sales.
or
sys¬
it.
sup¬
The outlook for legisla¬
substantial program of road
be approved.
school
of
major
so
legislation in this session of Congress.
I believe that
kilowatts.
power
trend.
agricultural products.
beneficial
will
getting
situation exists
higher price supports,
farm
these two issues
on
these subjects.
same
on
tion
of
to be about
seems
however, there
several million
market for
a
that figure and may exceed
(0.70 lb.)
The
the
be
to the builder of the most
even
tems.
production before the latter part of 1955, or that
will exceed 200-300 000 units.
in 1955 will certainly equal
will vigorously oppose any legislation to do further in¬
nation's
kwh.
above 1954.
12 million kw. of
jury to TV A, RE A, and municipally-owned power
sys¬
price
although I do not/believe color will ever com¬
pletely replace black and white, either in programing
number of steam-electric generating plants were
placed^
expressed.
readily available With
actual production this year
and the amount to be added
to those behind
sharing of atomic energy knowledge for peacetime uses.
Heavy expenditures will be authorized for the Defense
Department. The only question will be whether or not
be
Once the economic problems are solved,
ing with the expansion of their facilities: approximately;
those of
student exchange; special inducement to encourage for¬
eign investments; dissemination of information about
ourselves to
tor in set
installed' capa¬
on
year,
killowatt-hours,
billion
and confident
having to do with foreign
legislative approval are
will
sets
is therefore unlikely
industry
billion kilowatt-hours and
reasonable
seems
This outlook is
given
color
tags materially below the present $8G0-$1.000 figure. It
that color will be a significant fac¬
*
billion kilowatt-hours.
billion
520
over
that of other free nations.
as
that
for
renewed
be
eco¬
close to 95.5 million kw. energy generation of somewhat
close, to 450
will
the
140 million
of
excess
power
total of 473
a
Perhaps the most effective step that could be taken
in the form of economic cooperation would be the ex¬
tension and liberalization of the Reciprocal Trade Act.
it
in
before
world.
that
increase
tems of the country reached a figure of some 87.3 million
military aid will help in
nomic and miltary assistance
the
year,
of
bility
these
of
end
safety
The
of
.
result
a
should
that this entire part of the world
independent.
as
have suggested.
reached in October, 1954, was materially added to by the
free
and
increase
Today the electric utility industry is geared to fully
meet the country's power needs, and it is
preparing to
meet much higher levels of use. The peak of 100-million
some
fense
the
of
the
publicity on this subject a year ago
Not over 25,000 color sets were
actually produced, and although good progress was made
toward the solution* of some of the problems associated
with color reception, much work remains to be done
nomic activity.
the
on
than
would
any
agreement.
There
slower
Consequently, the increase in electric use in
particular period is the sum of the normal growth,
that'is, the continually widening use of electric power
for any given level of economic
activity of the country,
and welfare of the nation.
.
than
it
was
a. year
ago,
fields of electronic data-handling
both commercial and military.
We
confidence to the future of our busi¬
and that of the electronics industry as a
whole.
generating unit at Philo Plant which for the first time
will reach
a
thermal efficiency of 40%.
-—
Continued
on
page
112
Number 5396
Volume 181
.
.
The Commercial and Financial Chronicle
.
Another
Continued from page 9
ment
Facing the Fntnre With Confidence
contribute
own
added
strength to
And
most
am
is
as
we
enter
would
I
now
the
about
industry
like
talk
to
with which
is
no
other
models
1955
to
outlay of more than $600 mil¬
lion.
That is nearly twice the
in¬
an
Industry
Will
It
Continue to Expand
after
that
bring its
market required
For General Motors to
I
early
is
evidence
the 1954 models.
our determina¬
of
General Motors'
maintain
to
tion
The history of some industries
is
this tremendous force.
amount spent for
Auto
abundant
in
reflect
measure
dustry like it.
;
by our
industry
1955.
familiar. To my mind it
unique. There
The
1955 models offered
The
leadership in engineering, styling
and
value
for
the
customer's
development
For General
achieve¬
that
ing market for cars of the station
sales
wagon
our
history.
our
in
proximate
type.
the
unit
10
fact
that
will
is
in
account
strikingly modernistic
styling, featuring very narrow,
slanting pillars with a
greatly
expanded glass area for
unob¬
It
of
vision.
structed
It
total
vision
of
for
A
with
design
distant
greater
search
see
our
1955
many
new
dream
Look
will
cars
10%
will
of
and
Expansion
Last
January I announced a
dollar expansion program
provide us with facilities to
keep pace with the growth of the
market for our products as we
appraise it.
billion
to
our
will recall, when I made
announcement, Mr. Sloan re¬
You
Into
for
the
look
a
future.
Just
marked
Future
the
to
as
more
our
re¬
laboratories, engineers and
anticipate
you
Motorama
than
the
deliveries
stylists work years ahead, so we
make it a practice to appraise and
by Pontiac as the Safari.
In
despite
111
Program
volume.
Now
increased
diving safety.
This year it is being introduced
by Chevrolet as the Nomad and
beauty
ap¬
decline and
to
less
for
will
defense
our
Motors
pas¬
the
combines
too
of
again
billion
continue
exhibited
was
sales
will be the highest in
I estimate that our
dollars
1954
It
General
Mptors I estimate
1955
in
senger cars
nearly
everyone.
economy.
significant
stylists and engi¬
neers is an entirely new
concept
developed for the rapidly grow¬
by
Motorama as the Chevrolet Nomad.
of
reach
the
within
tion
our
So much for the broad economic
background
(367)
the
products in the
markets
years
for
that, based on his long
experience, such programs always
tend to increase and that before
got through with ours it prob¬
ably would run to a billion and a
we
half
our
ahead.
Our studies indicate that
some¬
dollars.
Mr.
Sloan's
crystal
ball
wa$
good, because that is just what has
happened. The program has grown
to
one
and
a
half billion dollars^
other advanced features on exhi¬
time in the early 1960s our coun¬
• < •
growth, the design and use of dollar.Capital expenditures for this
bition.
We
anticipate that the
their products become stabilized.^
try should achieve a gross na¬
Our
new
Chevrolet, Pontiac, ideas
program in the past year reached
and concepts will be of sub¬ tional
Such industries no
longer con¬
product of $500 billion.
a total of
Oldsmobile, Buick and Cadillac stantial benefit to our
$750 million. Expendi-i
stylists and
tribute to further stimulation of
We find that by 1962 popula¬ tures for 1955 under this program
lines are outstanding.
Each has
engineers in planning the produc¬
the economy or to a furtner rise
tion may total 184 million, almost are estimated at $500 million. The
set a new high standard in its own
tion models of future years.
in living standards.
20
million
more
than
today. remainder will be expended iii
field.
Never before have all of
Now for a summary of business
Number of households should in¬ 1956. This does not include $200
The
automobile industry
our
lines been so far ahead in
pre¬
outlook for 1955 as I see it.
crease from 48 to about 54 million,
million which we have authorized
sents a sharp contrast to this pat¬
every respect.
It is my belief that this year
tern. Here is an industry already
creating a tremendous new de¬ for modernization and expansion
This year all five lines have the our national
economy will reach
mand for homes, motor vehicles of our facilities in Europe..
over 50 years of age. For 50 years
distinctive panoramic windshield, a new
peak.
and other goods and services.
this industry has been able to
When
this
program
is com¬
combining beauty of design with
I foresee a gross national prod¬
make an ever increasing contri¬
Assuming maximum utilization pleted, General Motors will have
increased vision for greater driv¬
uct in the area of $370
billion.
bution to the economic advance¬
of
the
ing safety.
country's
economic
re¬ expended in the United States and
That would
be
an
increase
of
ment and well being of the na¬
Canada alone three and one-half
I said last year the impact of about
3% over the estimated level sources—in other words, full em¬
tion. Billions of dodars have been
billion dollars for capital invest¬
this
pioneering achievement by for the year of 1954, and some¬ ployment — it is estimated that
ment since the end of World Waa.expended to capture the favor of
General
Motors
would
be
felt what
in
excess
of
the
record
customers.
disposable personal income might II. This is in addition to very
throughout the industry and for reached in 1953.
;
And now, after 50 years, it is
well be about 40%
higher than substantial expenditures for spe¬
many years.
cial tools during this period.
showing the greatest vigor, and
Against this encouraging back¬
today.
Its impact was immediate. It is
vitality in all its history.
This
drop and provided we continue to
General Motors capital expen¬
Motor vehicle registrations now
no
exaggeration to say that the enjoy labor peace, our industry
year the industry has come for¬
ditures, of necessity, will continue
ward with the most outstanding improved styling inspired by the should produce and the domestic total about $58 million. With dis¬
at a substantial rate, both to keep
panoramic windshield together market should absorb
products ever offered
to
cusapproxi¬ posable income up 40% we esti¬ our facilities and products modern
with higher compression engines,
: tomers.
mately 6,800,000 passenger cars mate that by 1962 there may well and to assure General Motors ade¬
automatic transmissions and the and
That is a truly amazing accomtrucks.
Unit production, in¬
be over ,75 million vehicles regis¬ quate capacity to keep pace with
plishment. It reflects as nothing many other mechanical advances cluding Canada and for export to
our
appraisal
of
the
normal
introduced by us have been re¬
else could the youthful state of
other
markets, should
approxi¬ tered, an increase of more than
Continued on page 113
sponsible for the greatest forward mate
our
industry.
30%.
7,600,000 cars and trucks.
surge
by
all
manufacturers in
Nowhere in the world has any
the entire history of our industry.
and
,
,
.
'
1
industrial
nation
own
group
future
as
of its
confidence
such
or
demonstrated
in the economy
such faith
its
in
has the automobile
industry.
What has
with
i
i
i
such
charged
industry
What is re¬
our
vitality?
our
stimulated
competition
Mo¬
styling leadership is the in¬
troduction this year of the first
completely new automobile body
type since 1949 when the twodoor hard-top was pioneered by
the growth and
industry.
It has
for
General
tors
sponsible for its dynamic growth?
It is my considered opinion that
the annual model change has been
the most important single factor
responsible
vitality of
of
Characteristic
«
This
Motors.
General
year
we
bines the
beauty of the two-door
hard-top
with
As in
and
comfort
the
convenience of
and
four-door sedan.
case
the
a
a
Deposit Insurance Corporation
shield, the impact of this pioneer¬
The industry
ment
•
Member Federal Reserve System m
Member Federal
hard-top and the panoramic wind¬
Efficiency has been increased and
the level of buying power raised.
1
Hospital Trust Company
of the two-door
progress.
technological
speeded
-
Sbfwid
presenting to the public a
four-door
hard-top which com¬
are
has grown.
mounted.
has
available
made
ber of
—to
used
And, finally,
change
has
model
annual
the
a
Employ¬
sufficient
num-
cars—good used cars
bring individual transporta¬
Statement, December 31, 1954
ing advance will be felt through¬
out the
industry and for many
completely new
exhibited as
This
years.
velopment
was
of the "dream"
duced
by
cars
in last year's
Now it is being
Motorama.
RESOURCES
de¬
one
intro¬
Buick and Oldsmobile.
.
.
.
.
.
.$ 51,873,459.65
Obligations
.
.
.
.
♦
.
.
.
.
.
.
•
•
•
.
.
.
Cash and Due from Banks
U. S. Government
Obligations of U. S. Government Agencies
State and
NATIONAL
STATEMENT
OF
CONDITION
Other Stocks
Banking Houses
39,065,030.07
.
.
.
.
State and
Municipal Bonds
Corporate Bonds and Other Securities
F. H. A. and Veterans' Insured
8,969,555.42
3,846,349.93
4,889,134.37
Morlgages
Loans and Discounts
Other Assets
Accrued Receivables
.
794,020.60
$299,345,314.40
.
LIABILITIES
1,396,819.56
....
460,032.42
.
Capital
$ 5,000,000.00
10,000,000.00
TOTAL
.
.
.
.
.'
.
2,420,000.00
....
4,843,577.00
$108,997,232.36
$101,664,619.26
561,708.21
.
Capital Stock
Surplus
Deposits
$2,385,000.00
2,967,500.00
Undivided Profits
....
.
.
on
.
.
Less Amount in
.
Portfolio
.
.
$107,175.26
.
.
27,522.29
79,652.97
4,502,653.87
Other Liabilities
6,457,351.84
.
266,237,430.56
6,262,000.00
Securities Loaned
Acceptances
1,104,851.84
TOTAL CAPITAL FUNDS \
$ 22,263,577.00
Deposits
313,553.05
.
Other Liabilities
.
.
Surplus
LIABILITIES
Deposits
.
Guaranty Fund
52,333.60
.
Undivided Profits
Other Assets
Unearned Discount
3,500,000.00
79,652.97
.
39,611,236.91
Buildings and Equipment
.
.
.
.
Customers' Liability on Acceptances
$ 10,706,710.08
U. S. Government Bonds
.
.
,
ASSETS
Cash and Due from Banks
966,427.42
522,600.00
418,651.79
119,915,819.12
•
Stock of Federal Reserve Bank
Loans and Discounts
At the Close of Business December 31, 1954
Bank
Municipal Obligations
Other Bonds
BANK of WESTCHESTER
107,558,597.30
1,766,663.09
11,949,422.46
$299,345,314.40
TOTAL
United
States
$108,997,232.36
.
Government
Securities
carried
at
pledged to secure United States Government deposits,
trust
deposits, and for other purposes required or
RALPH
T.
$10,492,248.96
are
other public funds,
permitted by law.
TYNER,
JR.,
President
"Serving all of Westchester"
Eaatchester
Member
Federal
New RoeheUe
,
Tarrytown
Deposit Insurance
Corporation
Tuck ah
Valhalla
United States
Government
powers, to secure
public monies as required by law, and for other purposes.
15 Westminster Street,
White Plains
Member Federal Reserve System
carried at
pledged to qualify for fiduciary
Obligations and Other Securities
$.23,815,481.97 in the above statement are
Providence, R. I.
The Commercial and Financial Chronicle
112
'Continued from page
W. STEINKRAUS
HERMAN
better
in 1955 over 1954—but perhaps not as good as 1953.
quite evident that the year ahead will see stronger
year
It is
competition in all industry with some having more favor.able opportunities than others.
One
elements is a continuous
demand for private and public hous¬
of the major
ing carrying into 1955 at a peak rate.
The auto industry is concentrating
models and completely
new
on
lines
attract
to
new
by
customers
new
satisfying individual tastes. This in¬
dicates that the automobile industry
is
of the fact that we are re¬
aware
electrical
The
industry
appliance
barely scratched the surface in
fields of home air conditioning
has
the
and color television.
The consolidation of smaller units of
H. W. Steinkraus
formation of stronger
groups is a further sign that many
companies are building for greater strength and effi—,
ciency to meet vigorous competition all along the line.
industry into
industry of which steel is the leader,
As for the metal
combination
a
inventory liquidations,
of
cuts in
severe
cedes
This
It
is
axiomatic that when
but
all
industry is enjoying
automobile
whole,
And,
excellent year
good business the nation as a
likewise, enjoys good business.
all
signs point to an
for
motor
in
W.
Glenn
Thompson
to meet customers' requirements.
As a
substantial
result, the industry as a whole should show
Indications for 1955 are
tiring the early part of 1954.
that all of these setbacks
being replaced by increased
are
at
decided sales slumps.
demands.
The
new
hacks in
set-
through sharp curtailment in government
1954
expenditures and customers' inventory liquida¬
defense
been experiencing
tion, has
mildly upward curve of
a
during recent months which has indications of car¬
sales
rying into the new year with continuing improvements.
Our
fluence
with
1955
enters
company
The
results.
1955
on
tube mill at Bridge¬
new
port, the huge aluminum operation less than a year old
the recently launched line of
Michigan, and
Adria,
Bridgeport Copperware—all have potential possibilities
for increased sales and profits
ments in facilities were installed in
We
believe
atmosphere
1954.
for
will
degree of careful planning, hard selling and efficient
production which
we
JOHN
President
Barring
lieve
we
in
crease
sales
volume
net
and
earnings during the next few.years.
Favorable
achieved
were
attained
results
able
we
were
of
planned
in
principally
follow
to
1954
because
the
pattern
with confidence that sales and
ings
in
will
1955
exceed
1954.
•
Inasmuch
is
uct
tied
be
impact
the
lines.
does
so
to
much of
the
our
on
case
our
in
buisiness
some
is to
as
less
One of the last
trend
definite
A
towards
the home appears to
in
facturers
1954
television
two
able
were
reduce
to
within
receivers
TV
color
the
model
improved
and
\
.
$127 million which the
stockholders,
will
the
to
H.
exchange
their
Nearly 20%
shares
David T.
Staples
were
we
will
the
values
look
not
rampant
fifty-four
pretty good
a
industrial
March,
back
scene
and
turned
year.
Near
a
the
major
out
under
of
turned
question
the
Some
Illinois
toll
influence
transition
on
from
tight
to
easy
money
are
- •
announced
at
projects
are:
three
roads
toll
in
an
aggregate cost of about $390,000,000; two
in
Virginia
costing approximately $157,000,-
costing $185,000,000 will probably also be financed this
and Ohio is still contemplating the construction of
$525,000,000
a
State from
toll road running diagonally across
near
Cleveland to Cincinnati.
roads
the
Oklahoma, too,
has not abandoned hope of financing two additional
toll
The New Jersey Turnpike
bond issue in the spring
and the New York State Thruway Authority plans to
market $250,000,000 of bonds in the fall.
• ?
'•
And this still is not the whole story.- Another 5,300
costing
$146,000,000.
Authority plans a $26,000,000
.
■
miles of toll roads have been
authorized
the
by law.
construction
be
proposed but are not yet
Bills and enabling acts to authorize
of these
additional
roads
are
expected
introduced in many
State Legislatures this year.
Some will certainly be enacted.
to
In
will
Florida, for example,
be
entire length
.
i
a
change in the existing law
a toll road running the
In Indiana, specific authoriza-
proposed to authorize
the Federal Re¬
certainly tempered the severity of the decline in
there
a
year,
up sharply.
The
today is whether
and fiscal policies exert a power¬
business activity. By making a quick
By
new
It is not expected, incidentally; that
litigations pertaining to some of these projects Will de¬
lay the marketing Of the bonds more than a few months.
A Michigan toll road from near Saginaw to near Detroit
of
The Federal Reserve and the Treasury
miles of these
more
tatively scheduled.
au¬
monetary
the year, over 600
$58,500,000 Dallas-Fort Worth Turnpike in Texas;
$74,000,000, and a
Carolina-Virginia Coastal Turnpike costing $3,500,000.
An additional $100,000,000 bond issue for the GreenwichKillingly Expressway in Connecticut has also been tenT
was
operating to a considerable extent in a man¬
are
aged economy.
Tripp
Southeast Florida Turnpike costing
a
feature
stability.
industrial
model
of
roads
000;
to
stimulus
C. L.
dates have been set.
v
the
new
J.
were
Enabling legislation has been adopted in the various
States • authorizing the construction
of an additional
4,000 miles of toll roads and some of these will come
up for financing this year.
Already plans have been
announced for the proposed sale of well over $1 billion
in turnpike revenue bonds in 1955—although no offering
of
recovery
serve
$68,000,-
financed.
and
will continue at an undiminished pace
for many more months or whether as in 1953 it will
stop by the end of the first quarter or thereabouts.
My crystal ball does not give me the answer but I
would like to make some general observations.
ful
of¬
approximately 1,400 miles
traffic
problem and another 1,400 miles under construction or
feature of the eco¬
ago, ended by
thereafter
introduction
tomobiles,
Raymond H. Trott
their
(two
of toll roads helping to ease the nation's complex
year
the end of the year,
production,
in
Turnpike
at the start of 1955,
The decline
of the whole economy was
We
New
highways had been opened to the motoring public
State Thruway, the Garden
State Parkway and the West Virginia Turnpike.
Now,
the
optimism
production, which
outstanding
nomic
common
exchanged.
The rest
held in the expectation—which
were
share—that the company's earnwill
increase
substantially in the
we
ings and
future.
of the
common
were
super
TROTT
that
be
com¬
preferred
the
—including the New York
one
Nineteen
.
requiring cash divi¬
recently given an oppor¬
bonds
projects:
approximately 720
operating toll roads in the United States.
of
the end
of pessimism. In the light of
the
developments of the ensuing
12 months that pessimism was not
justified. I wonder if a year from
was
come
stock for $1.20 cumulative
stock.
and
year
and
Stockholders
tunity
suppliers
customers,
find
that
Jersey
there
miles
President, Rhode Island Hospital Trust Co.,
Sv
comparable with or somewhat higher
than those of 1954.
revenue
following
Turnpike—Oklahoma,
uary
of
the present waS also not warranted.
principally from
reserves and plowed-back
earnings.
We expect earnings in 1955 to be
were
removal
which the manufacturer operates.
has budgeted for these purposes
dends
analysis;
reduction and, therefore, greater
on maintenance of high qual¬
ity; new merchandising techniques; introduction of new
products; greater attention on the part of top manage¬
ment to long-term planning and, most importantly, a
renewed interest, sincerely attempted, in relations with
gas reserves, to expand our refiner¬
ies and to improve our nationwide
marketing position.
the
State Parkway ($20,000,000).
Mileage of toll roads in operation
nearly doubled during 1954. In Jan¬
1955 in the
earnings; continued stress
in
oil
billion in toll road
finance
Turnpike
New
east
creased emphasis on cost
J"
our
City
1954 broke all
000); the Jones Beach State Parkway
($40,000,000); the Kentucky Turn¬
pike ($38,500,000); the West Virginia
Turnpike ($37,000,000), and the Gar¬
from jobs through the introduction
machinery in plants and offices; an in¬
the
1955
average
Arvin is associated: Greater
research
market
on
John p. Stevens, Jr.
It is designed to increase
in
den
pany's history.
in
the
division.
Tide Water Associated Oil Co. is about to embark on
the heaviest capital expenditure program in the com¬
pany
of
reach
only creates added manufacturing and sales economies
but it also contributes to the profits of an electronics
prevailing spirit
V>
TRIPP
$102,300,000);
the
Greenwich-Killingly
Expressway — Con¬
necticut
($100,000,000); the North¬
Providence, R. I.
President, Tide Water Associated Oil Co.
L.
ferings,
Despite contrary predictions of a few
strong derftand continues for popular-priced,
radio sets.
Obviously, this condition not
now
The
the
American family.
1955 opens, a wave of confidence and
optimism, the like of which has not been experienced
for 25 years, is sweeping the country. A year ago the
STAPLES
the
because
($239,000,000); the Penn¬
($233,000,000);
Kansas Turpike
($160,000,000);
the
substan¬
prices
on
As
might
C.
financing and construction
to
sylvania
.
a person
for
Turnpike
in
monochrome sets is responsible, at least in
part, for this trend. This, in turn, suggests the unusual
effort manufacturers will make to bring the prices on
tially
essential
things
stop eating.
D. T.
receivers
The fact that manu¬
be developing.
RAYMOND
food
than
year
call
might
enthusi¬
York State Thruway (two
offerings,
$350,000,000); the Massachusetts
.
prod¬
road
More than $1
families
is almost certain to be
postpone purchases last year,
communities in
industry' a
might not have as- direct
recession
an
as
to
to
6f
.
coming
seems
less
previous records.
earn¬
those
.
.
.
Toll
absent this year.
employees,
instituted in
1953 and prior years. For this reason,
wre approach the new business year
progress
the
the times
structure
little
the
marketed
of
major upset in the national economy, I be¬
anticipate a steady in¬
a
for
J.
additional monotony
can
prospects for
temper of
that
tor, fear of unemployment, which caused many
reliance
Manager, Marathon Corporation
General
&
feel
rate
have perhaps a
President, Tripp & Co., Inc., New York
others, is expected to be reflected in favorable results
1955. In addition, a negative fac¬
four industries with which
STEVENS, Jr.
De¬
products and the improvement
new
message seemed to imply
would not permit business re¬
long run benefit of all concerned
another year of stability would be better than
a
boom.
furniture
metal
Developments which can be expected in
apply.
I
the
over
general
for these industries in
table
business
good
of
Union
I
so
strong during the last half
was
some
are
threat and President Eisenhower,
a
the
of
And
made.
Continuation of this demand, coupled with
introduction
years ago, a
1955 and what we make of it will deepnd upon
exist in
the
the
Other improve¬
in 1955.
the
of
products
There
present.
tightening of the whole interest
1954, enabling some firms to set new sales and earn¬
ings records.
major
number of
a
well started which should have important in¬
programs
sets,
television
and
radio
are
the
Furthermore, if industrial production, already
historically high level, continues for long to ad¬
at the pace indicated in November and
December,
an
be
many articles now regarded
the American home. Included in
for indoor and outdoor use and electric housewares.
of
which suffered
brass industry
and
copper
list
did
they
boom
a
Administration
the
asm
the sale of
but essential in
all
as
mand for these
directions.
in many
uses
The
is finding
a
ing forecasts for residential construction this year should
this
industry
aluminum
growing
rapidly
population growth, the increased rate at
being formed and the encourag¬
which family units are
affect favorably
what
1945-46).
gains over 1954—a year in which some motor car manu¬
The nation's
to
up
us
that
State
vance
experienced
exactly
bust.
In fact, its recent increase in stock
margin re¬
quirements from 50% to 60% is the logical first step
in such a program. Precedent suggests that if the stock
market doesn't calm down, margins will be raised to
75% and perhaps even to 100%
(as they were in
industry, including
presently are operating at or near capacity,
extended work days and work weeks and extra shifts
reduction in business
defense expenditures and a general
volume of so-called consumer durables were
is
to reach an inflationary stage.
Accordingly, if
actions are any criterion, it would be reasonable
to expect the Federal Reserve Board to take
steps to
curb the current expansion in order to prevent it de¬
veloping into a boom, which would bring the inevitable
own,
facturers experienced
it
made
have
past
Many plants in the automotive parts
necessary
authorities
covery
strong buying trends which already
have developed will continue through much of the year.
being
brings
his
that
models, most of them of com¬
pletely new design, are proving ex¬
traordinarily popular with the pub¬
lic.
Indications now are that the
our
control,
under
past, and this is
wave of
confidence.
the
present
this
and
said inflation is still
The
manufacturers.
car
brought
psychology is again develop¬
ing.
The stock market is engaged in an almost un¬
precedented advance, with, one might say, almost no
visible means of support.
Residential building, stimu¬
lated by the 100%, 30-year mortgages permitted under
the new housing act, is setting a pace that seems too
fast to
last.
Treasury Secretary Humphrey recently
parts
electric housewares fields.
the
the
Reserve
depression
a
indications
and equipment, radio
television, metal furniture and
and
be
can
thing of
a
for
in 1952 and 1953.
the auto¬
covering
company
our
motive
cycle
are
bases
Federal
However,
part. This prediction is based on pro¬
jections just completed by executives
of
the
crystal clear that they beileve the best way to prevent
a depression is to prevent the boom which
always pre¬
is a
which Arvin Industries, Inc.
four industries of
the
to be among
higher than in 1954 in
1955 volume and earnings will be
depressions
of
one
in 1954. Many would credit it
decline. This has led to the belief
the
business
the
that
fanpily, As a result,
the chief interests of the American
1955
turning to vigorous competition.
in
Thursday, January 20, 1955
.
production
stopping
that
the automobile continue
The home and
States Chamber of Commerce
optimism displayed everywhere points to a
The
with
the Board,
Arvin Industries, Inc.
President, Bridgeport Brass Company
President, United
Former
industrial
THOMPSON
W.
GLENN
110
President and Chairman of
a
.
.
(363)
.
•
of the State.
Continued
on
page
115
Volume 181
Number 5396
Continued from page
.
..
..The Commercial and Financial Chronicle
(369)
serves
vigorous support
part of every citizen.
111
the
on
Bold
planning such as this pro¬
vides the impetus that keeps our
economy on the march forward
Facing the Future With Confidence
and
men
Just
women.
as
an
Eisenhower
The
growth of the market for the Cor¬
poration's products.
By so doing we are making an
important contribution to security
and opportunity for thousands of
toward
Highway
The old frontiers
Program
is most
It
quick
ex¬
has
recognize the
to
has
heartening, too, that
science and
been
role
ample of how job opportunities in
economy.
is
—the last prewar year and a year
of good business for us.
In 1940,
we
had
233
on
our
payrolls
States
thousand
in
Canada.
and
As
now
of
addition
and
men
Motors
to
women
payrolls
ate under
States
and
vehicles
General
Canada
that
proves
opposite.
ments
Technological improve¬
jobs.
The
whole
Some people are now referring
to
technological
"automation."
by this
new
other term
improvement
as
Do not be confused
word.
for
a
It is just an¬
process
much.
willingness
of
the
auto¬
mobile
industry
to
undertake
large capital investments for new
and improved facilities—as well
as
for
new
and improved products
—has brought the industry, over
the span of a single lifetime, to its
present stature. The industry has
become
the
greatest
single con¬
tributor to the strength of the na¬
tional economy. It has given our
people an individualized means of
transportation
enjoyed
no
by
other people on earth.
-progress must
and will
continue to insure the creation of
more
tunities.
can
and
better
Only; by
tinue to
to
national
progress
industry
maximum
con¬
tribution.
I am sure others
to
do
are
determined
likewise.
they want,
to
the
program
reach
Motors
75
million
estimated
an
$100
completed,
will
investment
this
represent
in
facilities
and desirable
necessary
a
as
capital investments made
Continued
The
for
99
from
24
page
:
Appliance
Industry in 1955
cents
to
bring people into
their stores.
Here, again, some re¬
tailers merely sold a lot of bags;
but also, here again, many of the
retailer
these
salesmen
creative
took
time
chasers what
who
tried
had
selling
to
techniques
the bag pur¬
ask
they
going to
were
them for.
If
the lady answered that she
going to use it to bring frozen
was
home
food
there
with
transportation
built into them.
efficient
service
In their construc¬
highways
modern and
will
prove
tremendous stimulant to the
They will make
a
a
econ¬
most vital
contribution to safer driving.
Nothing
country
his
fects
undertaken in this
ever
match
can
will
Its
endlessly
business
the
in
program
beneficical
multiply
every
household
this
the President and
by
advisors.
reach
less than twice
are
retailers
many
as
we
had
in
and
nation.
ef¬
to
every
It
de¬
This
of
duced
and,
this
again,
sales
created
by
selling.
Let
—
creative
selling works. If you are not al¬
ready selling in this way, go to it
for
a
prosperous and successfu1
1955.
Exchange on Jan. 13 at $6
share.
The net proceeds from this fi¬
nancing will be added to working
capital and provide for expansion
and acquisition of additional mar¬
kets. Tentative plans call for five
additional
retail
units
were
of
type
Amer. S. E. 5 & 20 Club
Stock
American
specialist,
H./ Diamond,
Exchange
stock
elected president of the mar¬
ket's "Five and Twenty" club, at
was
the
group's ninth annual meeting,
dinner and election. Mr. Diamond
succeeds John S. McDermott. The
organization,
composed
of
store, yet somewhat smaller than'
giant supermarkets.
the
168
brokers who have held American
With Investors Planning:
Stock Exchange memberships for
twenty-five or more years, com¬
prises 34% of the
regular members.
Also
market's
499
elected
were
Rulley
Vice-President; Harold
Brown, Treasurer and Jack Feinstein, Secretary.
Leonard G.
Greene was appointed chairman
Koerner,
of
the
entertainment
committee.
(Special to The Financial Chronicle)
BOSTON, Mass. —- Richard F.
Alence, Donald G. Hunter, Theo¬
dore H. Newcomb, Jr., Benjamlj?
Willens, Ronald H. Winde, Jr., ar>(i
Norman F. Woodruff have joined
the staff of Investors Planning
Corporation of New England Inc.,
68 Devonshire Street.
Commercial State Bank
and
Trust
Company of New York
formerly Modern Industrial Bank
pro¬
creative
'
STATEMENT OF CONDITION
V
^
December 31, 1954;'
"
tell you one
me
retailer from the South. For
RESOURCES
Cash
on
$16,485,225.07
Hand and Due from Banks
the first nine months of this year,
he
salesmen
his
and
customers
to
come
waited
in
for
asking for
During the last three
months, he made full and effective
use of the type of creative selling
I have
been talking about. .He
appliances.
told
that
me
a
as
result
of
this
sold
more
technique he had
appliances in the last
months alone
three
than
he
had
19,295*876.17
U.S. Government Securities
502,800.00
Other Bonds and Securities
41,673*038193
Lftahs ai)d Discounts
J 14,217:10
Accrued Interest Receivable
Customers'
Liability for Letters of
Credit and
226,673.41
Acceptances
Furniture, Fixtures and Improvements
547,777.79
Other
138,453.80
Assets
in the
MANUFACTURING
COMPANY
previous nine months.
Gentlemen, I don't know how
of you have reached the
conclusion that "people" are pros¬
$78,984,062.27
manv
pects for appliances. I don't know
how many of you have reached
the stake of willingness to talk to
I
lh<
he
list of
customers
which
Eaton
has
been
privileged to serve for more than 40 years includes the
most respected names in
practically every basic industry with
volume production. To have served them is in itself a testimony to
the caliber of products which Eaton makes and to this Company's
standing
as a
dependable
source
of supply.
|
classify four people in order
develop one customer. I know
and
to
those
of
who have had the
experiences I have
you
successful
mentioned
motor
among
truck
the products which Eaton furnishes industry
are
axles and axle components;
springs and spring wire forms; stampings; permanent mold
iron castings; rotor pumps; fastening devices, cold drawn
steel wire; sodium cooled, poppet and Free valves; tappets, hy¬
gray
draulic valve lifters and valve
matic
seat
inserts; jet engine parts; Dyna-
drives, brakes and dynamometers, electronic controls.
Ohio
•
Saginaw
cleveland
Battle Creek
•
•
lawton
vassar, Michigan
marion
•
.
•
Detroit
massillon,
•
•
Marshall
Kenosha, Wisconsin
only
business,
Lackawanna, New York
•
London, Ontario, Canada
but it
business.
Instead
wasting hours with a shopper
looking for the biggest discount,
you spend less time moving a per¬
son who hasn't "shopped" through
of
the
Unearned
718,450.29
Discount
Liability for Letters of Credit
and Acceptances
226,673.41
378,297.41
Reserved fpr Taxes and Interest
Other
Liabilities
319,069.c0
11...
Capital Funds:
$1,650,000.00
Capital Stock
Income
Debentures
2,500,000.00
1,228,590.28
Surplus and Undivided Profits
531,777.75
Reserves
stages of interest, desire and
with a full-list
sale. To those of you who are not
selling in this manner, let me as¬
sure you that the forecasts indi¬
cate the opportunity will be bet¬
action to
come
It
of four
1955
could
into the year
45,000,000 wired homes. This
with
means
reach
we
$78,984,062.27
Of/ices
MANHATTAN
116 Fifth Avenue
appliance sales in
units,
and
5,910,368.03
up
1955.
looks like
13
or
528 Broadway •
•
1400 Broadway
318 Grand Street
14,000,000
go
the ratio is better than one
BRONX
332 East
149th Street
BROOKLYN
four.
to
Many of
PLANTS OPERATED BY SUBSIDIARY COMPANIES:
$71,431,203.53
Deposits
produces, good
contacts in
PLANTS:
set
You know it pro¬
ter than one customer out
General Offices: CLEVELAND 10, OHIO
are
ready to apply this selling
technique full force in 1955. You
know it works!
automotive heatingventilating systems, automotive air-conditioning units; leaf springs,
coil
morning
LIABILITIES
-»nd
duces—not
Today
this
go
you
have been heard to
that you
wish you could
back to the "good old days"
remark
of the 1930's. Let me draw for you
this
one
last comparison.
In the
be
during 1955.
{ >
Markets, Inc. presently
operates three food markets in
suburban Philadelphia — in Ply¬
mouth Valley, Hatboro and La¬
fayette Hills. The company's pal-1
icy involves^ the 1 planning and
laying out of medium sized food
markets, considerably larger than
the average neighborhood grocery
Lerner
thou¬
creative selling
EATON
to
added
final story.
Recently, at the furniture market,
I talked to a neighborhood furni¬
ture
Stock
pitch for a larger
home freezer. If
worked,
sands
stock (par $1)
Markets, Inc. (a Penn¬
sylvania corporation) was offered
by Philadelphia
Securities Co.,
members Philadelphia-Baltimore
common
per
these prewar years.
the
full
omy.
many
A
or
she
talked
about
cooking for
picnics, he had an ideal opportu¬
productivity of in¬ nity to talk to her about a new
dustry.
range. If, in many cases, she was
Modern and efficient highways
going to use it while visiting as a
will strengthen our military and
reting place for baby's diapers, he
civil defense.
They will make it had an immediate opportunity to
possible for the vehicles needed find out how she was going to
for our growing country to render launder them once she got home.
the
as
issue of 50,000 shares of
new
class
of Lerner
store, the
immediately in
was
a
refrigerator
Offered at $6 a Share
A
the
from
salesman
times
three
Elects New Officers
improved plants and equipment
increase
than
opportunities—not counting
Philip
far-
by industry. It will increase the
productivity of our highways just
as
as
dedicated.
are
esti¬
which contemplates
program
the
sales
and
prospering national economy. That
is the goal to which we in General
use
When
are
dynamic
more
designed
What will
billion.
capital
just as
look forward
can
we
ever
an
sound
and a people
for the things
to
1962?
envisioned
Motors will con¬
our
highways
the President has
taken the lead in proposing a 10-
sighted
policies
work
willing
Fortunately,
con¬
economy.
tinue to make
million
58
number.
to
for
mated
con¬
the expansion of the
We in General
_
oppor¬
maximum
make its
tribution
job
such
the automobile
of
tion and in their use,
Such
still
traffic
that
rises
must
that has
been largely responsible for the
rising standard of living to which
the automobile industry and mass
production have contributed so
The
tion
national
more
trying to
are
doubling Federal, state and local
expenditures to provide a modern
and
efficient network
6f high¬
ways. In order to accomplish this,
outlays over the 10-year period
benefits..
economy
several
happen when our vehicle popula¬
year
create
We still
over
half
for
United
in
only 15
technological
improvements do not wipe out
jobs. The impact is exactly the
years
country
world at peace,
a
those years was 24,000,000, or a ratio of one to six.
You're going back from this meet¬
ing into your 1955 marxet wam
The market is there
today.
are
Given
.
than
greater
been
progress
they
opportunities
Lerner Markeis Slock
homes during
existing antiquated road
1955
move
the
the
highways.
obsolete
our
conditions.
thousand
our
in
and
present in¬
our
billion dollars each year to oper¬
employment
287
of
and
costs
It
construc¬
highways
new
adequate
stands at 600 thousand.
The
the
modernization of
sand, an increase of 287 thousand
good jobs in only 15 years. World¬
wide General Motors
of
tion
United
today
employment totals 520 thou¬
our
opinion, nothing
needed in this
up new frontiers
my
country to open
for business than
employees
the
In
vitally
more
for
the
have
Never
years preceding the war, our
major electric appliance industry
averaged 4,000,900 sales a year,
and the average number of wired
TV—and there
*
highways must play in the con¬
tinuing expansion of the national
General Motors have grown, here
is what has happened since 1940
industry whose hori¬
limitless.
are
zons
our
of geography
disappeared, but their place
been
taken by frontiers in
have
Eisenhower
President
frontiers.
ever new
six
113
1574 Pitkin Avenue • 815
Member FedeAal Deposit Insurance
Broadway
Corporation
114
The Commercial and Financial Chronicle
(370)
shares
Food Marl Common
Stock at $10,50
'
a
Sh.
& Co. and
associates yesterday (Jan. 19) of¬
fered 180,000 shares of Food Mart,
Inc., common stock (par value $2)
at $10.50 a share.
Of the total,
Shearson,
shares
are
company
and
50,000
the
Hammill
being
the
sold
by
be
to
outstanding
remainder within 220
upon
completion of the sale.
'
Net proceeds to the, company
from the sale of its 50,000 shares
Paso.
will
meat
with
used
be
all
redeem
of
the
other funds to
departments
Sales
carry
ing
and
stock
to
now
purchase
the
of Del Norte Frozen
capital
Foods,
Inc.
remaining
Inc.,
Mart,
of
130,000 shares for the account of
chain
controlling stockholders who will
cery
20
retain
southern
retail
operates
food
and
Continued
a
gro¬
or
about
36%
of
the
stores in western Texas and
twelve
280,000
New
are
in
Mexico,
El
of
Paso
which
and
8
page
J
.
except :fdr the
in five Small
.
are
made
on
cash
a
t
and
Recommendations & Literature
basis.
ing the fiscal
years
sales increased from
the
ended
Sept.
the
25,
Dennison Manufacturing
six months'
1954
$8,228,028 and
net
sales
Lackawanna & Western—Analysis—J. R. Williston
Co., 115 Broadway, New York 6, N. Y.
&
$9,476,025 to
For
$15,683,866.
Delaware,
1951-:1954, net
Company—Analysis—W. E. Hutton &
Co.r 14 Wall Street, New York 5,,N. Y.
-
holdings of 100,000 shares,
jrom
have gro¬
Jn the four year peiyod cover¬
'
Food
and,
departments
outstand¬
debentures
miles of El
stores
produce, meat and non-food
cery,
cipal amount of subordinated in¬
come
of the
stores, are self service operations.
prin¬
$400,000
All
....Thursday, January 20, 1955
..
were
General
income $153,-
Electric—Analysis—Cohu & Co:, 1 Wall Street, New
"
YOrk 5, N. Y.
694.
General Gas
Corp.—Memorandum—Kidder, Peabody & Co., 17
Street, New York 5, N. Y.
Wall
♦
Indiana
* Gas
Water
&
Water
&
Company—Annual report—Indiana Gas
Company, 1630 North Meridian St., Indianapolis 2,
Ind.
Lerner
Markets, Inc.—Circular—Philadelphia Securities Com-
1526 Chestnut Street, Philadelphia 2, Pa.
pany,
Manning, Maxwell & Moore, Inc.—Analysis^—Reynolds & Co.,
,120 Broadway, New York 5, N. Y.
>
-
•
Missouri Pacific Railroad
120
Co.
—
Review
Sutro Bros. &
—
Co.,
Broadway, New York 5, N. Y.
Mitsubishi
Chemical- Industry—Data
in
issue
current
~
of
"Weekly
Stock Bulletin" — Nikko Securities Co., Ltd., 4,
1-chome, Marunouchi, Chiyoda-ku, Tokyo, Japan.
•
National Uranium—Data—Teden &
.
Company, Inc., 149 Broad¬
New York 6, N. Y.
way,
Opelika Manufacturing Corp.—Memorandum—Glore, Forgan &
Co., 135 South La Salle Street, Chicago 3, 111.
.
*
•■*<*
Pittsburgh
Coke
& Chemical Company—Analysis in current (
"Gleanings"—Francis I. du-Pont & Co., 1 Wall
Street, .New York 5, N. Y.
Also in the same issue is a list
of 40 selected companies which 'should earn more in 1955.
issue
-
of
In
the
of
stocks
issue of
current
and
"Market Pointers"
industries
which
are
to
appear
selected
lists
interesting
have
potentialities.
Puerto Rico Water Resources
Autbority Electric Revenue Bonds
—Descriptive circular—Ira Haupt & Co., Ill Broadway, New
N. Y.
-York 6,
•River
Brand
Rice
Mills—Memorandum—Rauseher,
Pierce &
Also avail¬
Co., Mercantile Bank Building, Dallas 1, Tex.
able is
memorandum
a
Southwestern Electric -Service Co;
on
Seatrain
Lines, Inc.—Report—J, W. Gould
New York 5, N. Y.
way,
Silex Corporation—Bulletin—W.
& Co.,
120 Broad¬
Keyser Manly, 11
West 42nd
Street, New York 36, N. Y.
Southern
Nevada Power Co.—Analysis—William R. Staats &
Co., 640 South Spring Street, Los Angeles 14, Calif.
Steel Products Engineering
Company—Analysis—Singer, Bean
Mackie,-Inc., 40 Exchange Place, New York 5, N. Y.
&
Sun
Oil
Ray
15
Broad
Corp.—Memorandum—Eastman,
Dillon
Co.,
&
Street, New York 5, N. Y.
►Union Chemical
Material Corp.
&
—
Memorandum -—Hirsch &
Co., 25 Broad Street, New York 4, N. Y.
United Merchants &
Manufacturers—Analysis—Laird, Bissell &
Meeds, 120 Broadway, New York 5, N. Y.
U.
S.
Fiberglass Industrial Plastics, Inc.—Report—General In¬
vesting Corp., 80 Wall Street, New York 5, N. Y.
Consolidated Diesel
National City Bank
Electric Stk. Offered
Van
Alstyne,
terday
(Jan.
shares
Precise hands,
capable hands
-
sensitive hands, practical hands,
price of $4
sold
and
a
a
share.
per
to
certain
of
selling
No part of the pro¬
sale of stock will
the
the
Consolidated
Diesel
leader in the nation.
Syndicate Awarded "
New York City Bonds' i
.The National City Bank Of New
York
heads
the winner
of
syndicate
a
Jan.
on
that
19 of
an
$65,200,000 City of New
21/2%
Jan.
was
issue
Yor&
various purpose bonds, due
15,
1956
to
The group bid
1980,
inclusive.
100.6356. for
a
net
interest cost of 2.4169%.
company.
The
Electric
Corp., with its principal plant and
office in Stamford, Conn., designs,
engineers and produces special¬
sales, willing hands have worked to make Raytheon the largest
—
from
accrue
production, accountihg, supervision, management
electronics company in Massachusetts
Diesel
behalf
on
ceeds
In research,
350,000
Stockholders.
"
.
offered
being offered are al¬
outstanding and are being
ready
■'
yes¬
The shares
cooperation of skillful hands.
•,
Co.
Consolidated
of
19)
&
Electric Corp. common stock at
the spirit of Raytheon is expressed in the
...
Noel
at
bonds are being reoffered
prices scaled to yield from 1%
to
2.80%,
Other
according
members
include:
to
of
maturity.
the offering
First
National
more
group
testing
For the
ized lines of aircraft
Bank cf New York; Bankers Trust
servicing and
equipment and electrical
generating equipment.
It also
than 18,000 men and women who see their handiwork,
produces,
of farm
supplying
consumer,
and finer electronic
industry and government with
products there is a deep
sense
kets
new
of pride
the
31,
fiscal
1954,
the
subsidiary
Raytheon organization.
Mount
sales
of
34
For
-■
MANUFACTURING
COMPANY;4
and
.
sales
'net
equal
ihare.
54, MASSACHUSETTS
V%»
<1
*
.•
^
.
>k
S
■
*
i
July
and
its
net
consoli¬
<|fj$393,629, equal
perf,common
share.
months ended
fiscal
current
RAYTHEON
WALTHAM
ended
Oct.
31, 1954, the initial/quarter of the
,-f
het
RAYTHEON
cents
the three
to
*
-
year,
amounted
profit
of
,414 * cents
consolidated
to
$3,627,343
$156,045 - was
per
common
•
pany
Guaranty Trust Com¬
of New York; Smith. Barney
Co.: The First Boston Corpora¬
tion; Harriman Ripley & Co. In¬
corporated: Halsey, Stuart & Co.
of "common
National Bank of
Chicago; C. J. Devine & Co.: Sal¬
omon
Lorb
Bros.
&
&
Hutzler:
stock; $650,000
ȣ loan agreement notes, and
*64 of subdrdinate'd notes.
$35,-
Kuhn,
Co.
Continental
Illinois
National
Bank and Trust Company of Chi¬
cago:
Fidder, Peabodv & Co*;
Phelps, Fenn & Co.; White. Weld
&
Co.; Eastman,
Dillon & Co.;
First
Ore.;
National
of
B~nk
Portland,
Ladenburg, Thalmann & Co.;
Trust
Company, St.
Mercantile
Louis; Shields & Company; Stone
& Webster Securities
Outstanding
capitalization
of
the company consists of 1,500,000
lhares
Company;
&
Inc.; The First
year
consolidated
dated net profit
to
wholly-owned
company
had
mar¬
Vernon-Im¬
.$11,573,008* and
,
Excellence in Electronics
a
line
a
implements which it
plement Co., Inc.,
subsidiary.
increasing utility and consistent growth
of the whole
small scale,
a
through
For
in the
on
Ira
Corporation;
Haupt & Co.; Kean, Taylor &
Co.; W. H. Morton
& Co., Incor¬
porated;
Ingen & Co.,
Inc.
B. J. Van
Volume 181
•
Number'5396
*
.
The Commercial and Financial Chronicle
.
(371)
Continued from page 112
tion for the construction of
I
whole
highways in this country is being met head-on by this
effective form of highway financing.
be
sought.
North-South toll road will
a
that
the
military and economic need
for an integrated, toll highway
Chicago to Miami will also receive strong
spring.
A meeting of officials from the
this
eight States concerned
will
be
a
The
several general factors which
are
railroad
industry is
optimistic note
The box
the
as seen
of past
score
complete
reduction
in
But
to1 stimulate toll
road
projects
are also enjoying traffic and
engineers' estimates.
which points to increased toll
A final
fact
revenues
nancing and construction in the
cation
that credit will
toll- road
be
construction
road
which
costs
fi¬
future is the indi¬
near
granted to the States for
they have
Federal
roads.
such
If
Federal
not
is actually
it should act
as
share
built
construction
of $8 million
of
A
toll
is put
When
When
last
•
future
time
lesson
toll
road
but-the
consideration
construction
question
all
by
is
is
anybody's
certainly
in
to
this
at
guess
receiving
interested
groups
to
mean
from
nation's
On Jan. 13 and lit, for example, the
National Highway Conference sponsored by the Chamber
of
the
other facets of
an
integrated hig. way program.
probable
many
Commerce
that
United
States
this
discussed
other discussions
It
C&O
roll
conferences
time, there¬
be
of toll
suance
thing is certain, however. The remarkable
of
public
tion of Federal,
ord-breaking
expansion
of
toll
roads
in
The
with
in
the
"To each is
writer's
an
reference
to
a
the
given
shapeless
a
mass
and
In
1954
and
G.
panies
W. VAN
DERZEE
throughout-America,
Wisconsin
Electric
C&O
-
tion
of
by the continua- «'■%
long-range program to improve and augment
a
generating, transmission and distri-.
bution
An
traffic
facilities.
important increase in the amount
electric
of
available
power
for
institutions and industries of
erating
the
use
ating
were
C&O
greater than those
000
was
in
kilowatt
gener¬
new Oak
Creek
placed in service on
Construction of a third 120,-
under
our
unit
way
completion
interest
some
winter months
their
of
at
Creek
Oak
nation's
carriers
is
and scheduled for
' time
during the
1955-56.
.
.
-
growth of the Oak Creek
plant is typical of the pace at which
Hould W. Van Derzee
modern
electric utility plant must
ahead of the continually mounting
a
demands
on
first
-
The rapid
for
and
more
electric
more
service.
Since
or
a
four
ahead of its scheduled completion date, manage¬
planning engineers must look right past trends
of the immediate present.
They must make not only
long range plans for additional generating facilities but
also for improvements in the vast network of transyears
ment and
j
the
op¬
was
kilowatt
well
outstanding.
Over
stock through pay¬
ownership
at
plant
Nov. 1.
history.
120,000
unit
our
made in 1954 when
area was
second
power
of keeping tabs
became
com¬
Power
Co. demonstrates its faith in the future
to
adopt what is popularly called an "electronic brain" for
direct application
to administrative procedures.
The
the
as
1.954,
>
President, Wisconsin Electric Power Co.
.»
plant like this should be planned at least three
road's
:
The railroad's antiquated book of rules has built
upnothing but stumbling blocks. Tomorrow's changes will
be the stepping stone."
quality of the rail¬
service, are proof of the employees' interest in
purpose
his
and
man
kit of tools,
a book of rules,
""
And each must make, ere his time has
flown,
A stumbling block, or a
stepping stone."
A
In the face
that
-
-
opportunities:
Outstanding
teamwork
took
an
of performing their jobs, the year ahead
improvement for the C&O. ■- -
earnings.
their property.
rec¬
is proving to the nation
1955
was
..
improvement program
organization of employees alert
be another year of
Remember
1
,
postwar
be expanded to keep
bonds has caught the imagina¬
State and municipal officials.
excellent outlook for
success
by private capital through the is¬
revenue
can
Pro¬
million
425
Streamlined yard and shop work,
planned and executed by C&O's own employees, and
Better Service Conferences organized by the employees
legislation enacted.
roads financed
and
to better ways
company's operations.
fore, before the program is actually formalized and the
One
deductions,
decline.
to
Overseas exports of
for the
of this sort will be held and it may
necessary
employee
coal's
climb
by the farms, homes, stores, business
2,500 C&Oers, who bought common
seems
and
1954
to
1954.
Like many other investor-owned electric utility
share.
a
expected
million
of merchandise traffic,
up
in 1954
time
Teamwork
and
some
it
$460
months.
first
consump¬
approximately 14 million tons, abou.
1953, and are expected to be higher ir,
in
off for most of the year, mer¬
up
revenues
coal—the
expected to
coal
..
behind
game,
recognize
reached in
been
is
traffic went up also, particularly in the
months, net earnings increased significantly
50-cent-a-share
is
stimulate
were
as
a
Pays Off
in
C&O
was
held
highway problem.
of
must
1954
same
With
enforced.
the
1955
coal
three
Merchandise
careful
the
by
traffic
traffic
which
and
should
It
1955.
to
from last year's $6.04
learned
coal
chandise
into
effect.
Exactly what this $101 billion program will
the
promising
diversification, the building
pays off.
included in- the
program
rules' of
in
of general conditions along the railroad and a coal pro¬
duction lowest since 1938, the showing was fairly good.
patent factor to
a
ideas
new
in
coal
geared
and Ohio earnings will be in the neigh¬
borhood of $40 million in 1954, $5 a share, a decrease
out toll road financings before
carry
highway
their
have
which
provision
a
for
money -
States
program,
States to
encpurage
the
than
funds
President's
matching
so
Chesapeake
construction program is implemented. This would mean,
in effect, that toll road States would have to put up
State-raised
team
a
the
Diversification
any
incurred
when and if President Eisenhower's $101 billion highway
les£
Tuohy
evidence
tons from 385 million tons in
year.
outlook,
for
the
rails'
stock averages are higher than they have been since
1930.. Railroad managements must be confident, because
disbursements to shareholders in 1954 will be $400 mil¬
lion, 5% more than 1953, although net income-for the
year is substantially down.
level above
a
and
Investors
traljic load in 1954'which engineers had predicted would
not be reached until
1981
and most other established
toll
business
recovery.
Walter J.
in
1955.
bottom has
duction
'55 will mark the crossroads of rails'
road
into
Increased Coal Output Seen
The
be archaic by legis¬
public, and even the
President himself, are bound to be
modernized.
Yes, there is'a new
look
in the
league and the year
building' is the
markedly successful operation of existing toll road facili¬
ties.. The New Jersey "Turnpike, for example, carried a
at
was
out-moded
lators,
wind which will not be ...lost to turnpike planners,:.
anticipated from the general economic
now
ment.
and
recognized
this highway, the construction bid price was 22% lower
than the engineers' estimated cost. This is a straw in the
Another factor
never
discarded
The
construction costs—as
graphically illustrated in recent contract, lettings by the
Massachusetts Turnpike Authority.
For one stretch of
,
tion, particularly in the steel and electric power indus¬
tries, and, at the same time, increase merchandise move¬
That is the
equipped to go after
its proper place in the transporta¬
tion
league.
Old methods will be
highway
•
second-best
together
diminishes with each succeeding year.
There are other less apparent trends which make -toll
road construction attractive at this time.
One is the
be
can
did, little comfort
nation's
One of the most obvious of these is the continuing and
rapid growth of motor vehicle registrations and travel.
The desperate need for toll roads grows rather than
marked
C&O
continue
could be
taken
from the railroad industry's
modest earnings of 3% during the
also indicate
railroad
in
performance not always records
If it
story.
lies ahead in the toll road field.
record year
the way up.
at the close of '54.
on
revolution
a
improvement in both coal and merchandise traffic
betterment
in
held
in
There
TUOHY
President, Chesapeake and Ohio Railway
Evansville, In¬
February. - Following this conference, it is ex¬
pected that efforts will be made by these States for any
necessary authorization of their part of tae proposed
project.
diana
An
on
WALTER J.
to be the start of
prove
paperwork procedures.
A proposal
net work from
impetus
well
for better
115
contracting for
lion-dollar
a
use of a Univac, Remington-Rand's mil¬
electronic, large-scale digital computer, may
Continued
on
page
116
The Real Issue
"In
world
a
of wars,
UP
crimes, famines, and sub-
'
jections
of people
to
unprincipled
temporary periods of business slump
worst
men
to consider what is wrong
r
'
and
manufacturing
•laid off
an
of
type
A tempo-
businessman
a
reason
Look into the economic vigor
with his price, product,
and
machinery
the
shift
toward "products
a
We're
proud of that punch
a
of
Here
people collectively want most to have.; There
be little progress
and
r
*
•
in
employees lack the will and necessity to
"The issue is not whether
<
*
i
and
distributive
;.
or
petitive forces that
economy,
based
the
can
give
a
reliable
the
day*
have increased 186%
revenues
company
was
i.
founded in July,
have increased 53%.
Gas customers
•
means we
Water customers
the
close
Company
we pro¬
of
every
1945.
At
wants
and obviously
the facts:
•
have economic
destroy the balancing of
on a^
are
Operating
water
of
was
have increased
1953,
Indiana
16%.
Gas
&
serving 126,600 natural
customers
in
66
cities and
Water
gas
and
towns
in
Indiana.
Proud?
to
.
,
adjustments of the productive
mechanism
people, and foster
•.
can
.
happy with it, too.
since
accom-
wants.
maladjustments that arise,
hinder the
or
consumer
The issue is whether, by the
progress.
choose to meet
mote
we
•
where employers
an economy
modate themselves to what .the
can
.
people—more
great many Indiana
—are
that
sup¬
stout, dependable part of the muscle.
plying
opportunity to reconsider his place and
accommodating
of Indiana and
you'll find Indiana Gas & Water Co., Inc.
it gives the employee
process;
occupation,
manpower
not the
are
exposed.
are
period of slump gives
rary
-
peril to which
i
dictatorships,
the
send
a
You bet
copy
of
we
our
are.
So
proud, we'll happily
annual report
upon
request.
com-
soundly expanding
currency
and
a
sus-
•./
tained flow of
new
savings for investment."—The
4*6
National
Yes!
City Bank ef New York.
Such is the real issue.
realized this fact!
If
only
more
of
us
INDIANA
GAS
& WATER
COMPANY,
INC.
The Commercial and Financial Chronicle
116
which
mission and distribution lines
electricity to
carry
Although the drug industry is perhaps less
variables affecting business in general, it
consumers.
task
the fact that, 25 years
used by residential
than 500 kilowatt hours—less
little more
approximately 2,922 kilowatt hours
of
average
There
1929 there
has been tremendous.
per
In
jumped to
By 1S54, the figure had
including
popularity,
;
electric
where
America
where electricity
city life to the farm homes and
sure-fire
economic
of many
to solve the difficult
that they continue
stockholders,
problems of determining the rate of increased use
well
i
i
with
will
who
those
for
their
those who
VANSTONE
S.
field.
than
tious
The
ahead
Looking
such
affect
sales
seem
this
at
a
forest
1955
in
sale
and
prices
increased
in
marketing
and
the
with
of
the
com¬
should
income
would
retained
from
The outlook for
the textile and appliance industries is still not too
bright.
Neither is that of the farm machinery industry although
bring
may
of
at
any
see
the
a
feel it
return
to
calamity,
be said
the ultra
favorable
as
be
some
barring
1954.
as
pick-up
we
may
not
conditions of 1953,
some
unlooked
for
confidence to
our
are
lieve
of
the
of
Government
known
as
excess
of
approval.
the
$1.1
The amalgamated
Toronto-Dominion
billion
and
more
bank
will
be
in
than
450
branches
recent
in
companies,
of
absence
We
of
markets
law
any
convinced
are
the
time,
will
be
is
quasi-public
up
of thousands
monopoly,
a
as
well as from the
it.
of
and
natural
at
the
stands
gas
,;
But far
If "the
Wilson's
be
more
to
for any
present
time
the
east to
the
same
migration of industry from the north and
southwest will
accelerated.
than this is involved.
palsied hand of bureaucracy," to use Woodrow
words,
can
don, England.]
industries—oil, metals, coal, timber and
is
no
reason
for Re¬
for
most
of
interesting
results
one
for
from
the
than $100 million Republic has made
new
material
raw
will
ore
come
sources.
The first
from Labrador-Quebec.
of Reserve
Mining Com¬
Minn., will be completed and
pellets from taconite begun.
ore
in
the
past
to
year
stock
and
The development
by
reserves,
and
that
company
has
the
work
ultimate
the
nearly
greatly
conversion
of
$60 million
our
funded
stock.
common
material
ees
pro¬
Repub¬
boost in titanium production.
We begin the year in the best
of recent
benefit
of
in
the
shape financially, in
efficiency
enjoyed.
ever
years
are
Republic
of
The
our
raw
plants,
fruits of
the
about to pay off to
the
stockholders, its
employ¬
and its customers.
HON.
why
other
natural
even
resource
farm
crops
ALEXANDER
U. S.
American
WILEY
Senator from Wisconsin
business
can
expect
a
substantial
light" from the United States Congress in 1955.
There
will, of course, be
political
parrying
the Democratic majority and the Republican
the Congress. That may, at
sult
in
uncertainty
some
"green
^
between
minority in
times, re¬
for U. S.
business.
Nevertheless,
both
major parties
expanding
the
United States economy. Both parties
are
committed
understand
America
world.
who
to
the prosperity
of
crucially affect eco¬
throughout
the
parties are headed by
that
will
conditions
Both
patriotic
men,
men
of
peace,
men
believe in America.
To
be
personally believe
that if the Republicans were in con¬
trol of the 84th Congress that our
overall free enterprise system might
be
considerably
more
encouraged
sure,
I
than under the Democratic majority.
Notwithstanding
thus be laid on the production of
gas
there
one
good
a
the first
see
beneficiation plant
preference
nomic
if the decision
supply
we
thoroughly bad, both from
warranting
curtailed,
has im¬
a
of
not
economics,
that
might
recently-acquired rutile deposit in southern Mex¬
our
debt
States Su¬
the well-head
is made
and
be
to
will
at Silver Bay,
other
authorizing Federal
status
Because the industry
competing
of
from
imports is advisable.
case
the
industry
consump¬
which
demand
particularly
a
it
more
years
huge
prior
Many be¬
decisions of the United
natural gas at
our
on
ahead will be
is substantial
be
because
matter of impor¬
a
throughout Canada, also offices in New York and Lon¬
comes
including coal.
the Phillips
the standpoint of sound
awaits
Eank, with assets
three
fixing of
length
now
of
steel
wholesome balance be¬
a
economy,
our
consider this decision
Europe and
of the Bank of Toronto and
and
eight
in
foreign oil is
and
Court in
utility.
Resurgence of financial
institutions
of
five
posed
already been approved by share¬
respective
of
barrels
8,000,000
about
barrel
One
reduction of foreign crude
a
The
good customers, should give
merger
the Dominion Eank has
domestic
preme
prospects.
| Editor's Note: A
holders
our
consuming
day.
a
tance, not only to domestic oil companies, but to
upward trend in the business climate in the United
^States, all of whom
There
will
year
hard
The maintenance
segments
price
that while
prosperous
be,
oil.
tween
In the early part
strength in the Sterling Area and Western
an
exploited,
related industries.
can
ahead should
year
well
if
rate, there should
in the automotive and
All in all I
exports,
improvement there.
some
the year
best come largely
earnings.
now
are
abroad.
year.
increasing
7,000,000
of
production
daily
a
and
durables
consumer
The financial stability of the company has been
build pipelines and equip
barrels today and more tomorrow can
Manufacturing prospects seem spotty.
towards
maintain
to
5% over 1954.
4 to
drill wells,
or
the year
Steel.
improved
is
The capital
Vanstone
We
trend
industrial construction
think
public
Warner
from
crude
a
in
producer
ico promises a
Rawleigh
increase
needed to
falling off in demand for hous¬
for another good
We
of
plowed back in the
that can alone
jobs
„
the
at
lic has large interests in both projects.
for the new army
Consumotion of petroleum products
to
ing, and that segment of construction would seem to be
headed
for
The
seekers.
refineries
S.
Byron
decrease in industrial and commercial construction, there
is little evidence of any
continue
large quantities of
and retain
to earn
in 1955.
consumer
occur.
in
facilities
good
funds
field, while there
to be some prospective
seem
us,
business
and
job
apt
ac¬
domestic
the
tion
The
opinion of
With good founda¬
1955 should be a
funds to be
make
of
crue.
In
to
strong steel
a
expect both residential and commercial
duction of iron
permit
production of iron ore
from Northern Quebec and Labrador
and
the
aluminum
from
Kitimat,
new
we
Republic
of
rapidly
tools
mencement of
substantial
Construction will be
.
rising population and
labor
force, tell us there are few
things more necessary now than to
A
grains of which we still have gener¬
supplies, much <;f it in pro¬
hands,
under
we
products. The oil well drilling program is continu¬
ing at a high rate and is expected to boost demand for
gas transmission pipe and oil country goods.
crowd
any
then
1955
our
equal
with
In
production and consumption will
be approximately equal.
;
v
y
This means that the mills will operate at a somewhat
higher rate because inventories will be maintained
rather than cut. The rate of operations would appear to
be somewhere in the neighborhood of 7 or 8 million
more tons of ingots than in 1954. •
•; ••.
v*
*
-
investment of
avoid
now
further.
reduced
be
will
steel
by
useful purpose.
a
that steel
expect
pany
ous
ducers'
should
..
.
.
.
serve
prosperous year.
proved, poor harvests of 1954 in Eu¬
rope and other areas is finding re¬
flection
inventories
can
reduction
dumping them.
We
•
■
high rate of activity of
previous years, but probably to increase. This increase
should be substantial enough to counteract any slight
face of the predictions of
political dividends by spread¬
instead
inventories
excessive
/
fabricators to reduce '
It reduced stocks
to a more practical level. By* using up their own stocks
as
well as what they purchased, fabricators consumed
more steel than the mills produced.
It? is unlikely that
last" year
inventories did
the
reap
Charles M. White
capacity.
smaller
a
quarter.
The move
by the careful liquidation of
haps,
tions
metal demand
moderately
im¬
have
j
perpetual boom.
is
products
somewhat better, base
in
ground
hoped to
steadiness
ago.
year
of
Not only do
year.1
ing the contagion of gloom.
-It
was
an
extraordinary achieve¬
ment.
It was manifested best, per-
factors which
the
propi¬
more
time
for
demand
the
by
products and
prosperity depends on our success in
the degree of our
this
affected
and partially processed
of natural
abroad
largely
is
economy
Canada
of Tcronto,
President, The Bank
Canada's
.
be well
Since the early fall of 1953, the great thing done by
American businessmen was to refuse to panic.
They
stood
the industry,
average.
picture last year was also clouded by the fact
that operations swung over a wide range from the mid¬
summer
lull to the high production rates of the fourth
Inven¬
RAWLEIGH WARNER
of them.
B.
this
measure
;
,
..
.
104% of the
Percentagewise,
industry at that time operated
49
-
the
growth
get them in still greater
.
a fairer standard,
1954
operated at
1947
^
Chairman of the Board, The Pure Oil Company
ready to take advantage
are
The
,
actual tonnage out¬
by
construction
premise that new opportunities will continue to present
themselves
have.
expansion program on the
long-range
our
in
industry is particularly sensitive to obsolescence
we
decade.
The
electrical industry and
We believe in the future of the
put,
3 •
.
this
Measured
at 89%
vide a larger market for drugs in 1955.
The American
expects good medical services, including drugs, and he
will require electricity tomorrow.
based
'
,
our
with production around the end
of
of this field is therefore
intimately tied to research, for which the industry iscurrently spending about 5% of its sales dollars.
The rapid rise of our country's
population, with the
large increase at both ends of the age scale, will pro¬
>
have
■
.
1955,
in
which
and
years
not be fully utilized
rising population catches
up
products, because the opportunities are so great
improving still further on the already good drugs
which
•
and equipment—
and unknown services
predict what new
to
as
,,>
needed
be
materials appear to
finished
and
raw
will
War
Korean
until
year,
its
of
presently known electrical appliances
as
control.
This
utility has no
of the area served and to the interests
progress
of
of
is important to the
it
ball,
crystal
the
probably will
may
construction
new
are
capacity which the industry built as
a
national defense measure during,
preserve
tories
profitable.
Although the management of an electric
that
to
under
farming
duction-line techniques of industry to make
easier and more
as
much
of the pro¬
possible for the farmer to use some
makes it
the farm,
appliances have brought all of the com¬
where electrical
forts of
•so
*■■'''■
.y .
the year will rank
'
tally is in, operations for
expected to be about 70%
But this figure does not
take into account the great reserve
1954
not
be made will be done selectively
the strength of our national capacity
for supplying our health needs.
The
physical needs for pharmaceutical production
have been met quite well, and it is not likely that
changes
helped
have
heat
the world—and on
out-produce
to
electric
and
motors
"
of capacity.
from foreign countries has become more of a problem,
particularly with hormones and vitamins. , The drug
industry is watching with keen interest the develop¬
ment of our tariff policy on drugs, hoping that any
of increase are to be found
rates
:
I
one
final
the
because of the al¬
efficiency of their
manufacture and the sharply limited> profit margin.
Competition
Volwiler
•
■
J-/: ■ 'J-■'">
in industry
..v..
-.
;
Similar
H.
Ernest
and room air condi¬
disposers, clothes dryers, freezers,
is
Corporation
of its better years in
toward an even better one
started
is
now
Steel
enjoyed
industry
By every standard of measurement
as one of the industry's best.
When
attained
ready
dishwashers and garbage
electric bedcoverings, broilers,
this
lower
quadrupled. In
found
television, steam irons,
host of new appliances have
a
It
before.
ever
M. WHITE
Republic
1955.
in
to be about
likely that these prices will go much
washing machines and vacuum cleaners
past decade,
than
dollar
period, the number of electric
the same
and
1954
the
expect
to
reasons
are
steel
The
competition developed in some lines,
including antibiotics and the corti¬
sone
group.
Prices of those drugs
dropped materially, and the patient
is
receiving more for his health
approximately 1,850,000 refrigerators
were
in American homes.
39.397,000.
tioners.
great nation.
a
President,
for the
omen
higher than in 1954. With in¬
creased capacity and improved
manufacturing technics,
intense
popularity of
For example,
During the past 25 years, the growth in
wicle
built
where
land
CHARLES
3%
customer.
electrical appliances
good
a
dollar demand for drugs
Electric Power System used
tial customers of Wisconsin
the
has
prise
pharmaceutical industry also.
In 1954, residen¬
the amount used today.
than one-fifth
therefore
is
the average amount of electricity
customers was
an
subject to
longest step
the
in
State
public utilities also.
ever taken toward a
competitive enter¬
become
to
the
be
definitely affected by economic
theless
.
ago.
Socialistic
is never¬
conditions. The
expectation that general business will be good in 1955
importance of their
and
complexity
the
of
be found in considering
may
would
the
idea
An
This
Laboratories
Manager, Abbott
President & General
—cannot be forced
II. VOLWILER
ERNEST
Continued from page 115
in
Thursday, January 20, 1953
..
.
(372)
I
feel
Alexander Wiley
the split between the two
that the strong
branches,
leadership which the Republican
Eisenhower Administration
is giving and will give will
Number 5396
Volume 181
.
The Commercial and financial Chronicle
assure a
means
our economy. A favorable
productivity, expanded Gross
Product, expanded employment, sound labor
management conditions and equitable tax administra¬
expanded
the
in
Congress,
of
stock. market,
life.
American
and
in
avenue
every
I
not
am
suggesting
blind faith, wearing-rose-colored
a
tion.
glasses
On the foreign scene, while there are numerous danger
spots, notably in Southeast Asia, the outlook is encour¬
asking for the type of forward looking, realistic opti¬
In Western Europe,
we are
arriving at approxi¬
which
blot
danger signals.
out
mism which has made American great.
Rather,
I
am-
Wejneed faith in
equilibrium — unsteady but nevertheless more
reassuring than before—with the forces of Communism.
To maintain the East-West equilibrium, U. S. defense
spending must continue high if we are to deter the
ourselves, faith in our free enterprise system, faith in
Soviets
prefer to spread fear and gloom, to reawaken mass un¬
mate
from
Meanwhile,
all-out
from
and/or
local
aggression.
leaders, faith in
our
Unfortunately,
Allies, and faith in
our
there
some
are
our
people ,wfio
seem
to
employment and other grim memories of 1929 and the
business research, particularly with respect to' neW in¬
There
dustries like atomic
provided
concepts
and
tremendous
Right
billion
licly
which
automation,
hold
in research.
fields
(let
paralyze
There
scientific
and
like
for
vital
fusion,
still
military
guided
chemicals
is
every
inventive
of
types
us
for
year
tion
America
fifty-five will be another boom
and
and
we
exercise
believe
I
definitely need be
the
for
free
bust and will be
no
common Sense,
and
world.
no
bust,
in
needs
etc.).
petro-chemicals
goods and
services
we
in
our
we
manufacturer
This
our
tax laws
should therefore be
standpoint
of
how best
Similarly,
our
tax laws
to
1948.
Lynch
But
and
should
further
a
different problems, indicates
necessity for
new
approaches to
these problems, but does not imply
a recession of either volume of busi¬
some
profits. The 1955 situation
imply the necessity for new
vitality and ingenuity in the depart¬
ments of sales, production, purchas¬
ing, and research of practically every
capital
equipment
manufacturing
and
or
be liberalized
research.
relieve
of
our
overseas
the
Federal
so
as
to
Above
this
Government
serving
to
help
particularly
in
view
There
the
unbalanced budget.
all,
we
must maintain
chology of faith.
(where
investment—thus
our
sound
in this country
a
psy¬
That is true of the Executive Branch
great
quality).
President
It
fortunately
should
Frank Zimmerman
demonstrates
be true in the halls of
accounts
and
speeded
1948
the
up
the
10%
save
by
process
was
just
im¬
wrapping materials
on
20%.
No
machine in good working order."
in there
to
its
company
salesman's
a
him
exhibit
must
now
as
longer dare
thought, "He
If he wants
cus¬
future prospect, he has to get
a
and show him the
savings that will enable
meet competition profitably.
Likewise,
manufacturers will
we
have
be
to
"sold"
supply users of
can
glass-forming machines economi¬
or
ourselves
we
We
can
meet wage pressures with
production
improved
equipment.
If
lathes and mills and grinders are unimproved from five
10 years ago,
bound
won't be buying
we
departments
"sell"
to
simply because
them to keep up
But if the
many.
busy, improved machines
are
will have
we
with the parade toward
economy
are
have
to
whiisfe
accompanies price competition.
The production managers and
purchasing agents in
our
industry also have different functions to perform "froth
here in."
of
new
turing
in
abreast
The production departments must keep
equipment developments and improved manufac¬
that management is alerted to invest
processes so
machinery that will reduce production costs. Purchas¬
ing
agents must
"researchers."
become
placirig
Order
,
is
universal
acceptance of
prediction that while 1954 saw
increasing competition in the sale of
consumers goods and consumer dur¬
able items, 1955 is going to be really
rough. Sales will be made, because
there are many dollars in savings
personal
prosperous
out; in fact, maybe it
worn
tomer A to continue
backlog
situation here at the beginning of the year thus presents
concern.
encourage
department
salesman pass by customer A with the
research
I believe that
a
our
considerably below that of recent New Years' Days. The
ness
himself
carve
sales
proved the machine to
or
ment, Lynch Corporation goes into 1955 with
more
competition, the capital equip¬
can
since
technologically
Corporation
or
Customer A bought a packaging machine
It's not
rebuilt.
cally only if
ZIMMERMAN
Along with most other manufacturers of capital equip¬
develop
country,
K.
President,
reappraised from the
stimulate
the
year
imagination.
in
different,
or
In helping his customers in
in 1955.
year
does
help further raise the standard of living.
new
by the machinery merchants.
intensify
could
is
price and novelty
ment
judgment, imagina¬
faith.
F.
more
missiles,
evidence that if
technology,
novelty—what
advantageous to the buyer.
both
to
as
The next most important factor
has
and stunt our growth.
Nineteen hundred and
prospered tremendously, thanks in major part to
research.
new
alone
fission,
as
industries
Great
to
must not permit the dead past to enslave
I think that America—pub¬
privately—could profitably spend
developments,
have
or
should forget the lessons
us
be
increasingly important part
selling.
package machinery
through all types of expert channels for civilian-type
such
us
Uncle Sam is spending at the rate of $2
year
and
like
of the past, we
of
none
promise for American growth.
now,
a
endrgy, electronics, Ultrasonics, liclw
processes
While
early '30s.
will
Creator.
politicqb-eeonomic frontier of coopera¬
tion are openingJn our own backyard, i. e„ jjn .the West¬
ern Hemisphere, thanks to private investment and credit
through the World Bank and Export Import Bank;
and we hope soon, thanks to the proposed new Inter¬
national Finance Corporation.
Here at home, one of the most important things which
I think Congress can do
fs to stimulate United States
new
But price will play an
who will do the
-
.
National
aging.
117
;i;<y
favorable climate for
climate
(373)
:
'
v
.
income
is
at
an
all-time
high.
must
be
dure
which was
To
more
than
"path of least resistence" proce¬
a
followed during the shortage
summarize, those of
field have
a
days.
in the capital equipment
great opportunity in 1955 to provide manu¬
with
facturers
us
superior
production
machinery
if
We,
through research, development, and efficient production,
can
furnish
'"t
money-saving
devices
reasonable
at
cost.
,
dams
F0LS0M, CALIFORNIA
NEWHALEM, WASHINGTON
STAMFORD, CONNECTICUT
industrial
plants
CHEMICAL FERTILIZER PIANT-JOPLIN. MISSOURI
.
NEWSPRINT & PULP MILLS-KAWERAU, NEW ZEALAND
NICKEL PLANT-NICARO, CUBA
METAL BONDING PLANT-EAST
.
ALTON, ILLINOIS
POWERHOUSE SUBSTRUCTURE-ASHLAND CITY,
fuel
aviation
*
TEXAS"
WATER TREATMENT PLANT-FT. HOOD,
1
TENNESSEE
depot
storage
MELVILLE, RHODE ISLAND
docks
NEW
NEW
piers
&
YORK, NEW YORK
CONNECTICUT
L0N00N,
*
PEORIA. ILLINOIS
CHICAGO, ILLINOIS
CLEVELAND, OHIO
V
■
,
vehicular tunnel
(
HAMPTON ROADS, VIRGINIA
marine
facilities
oil terminal
KURNELL, AUSTRALIA
^
BOMBAY, INDIA
air
bases
is
(6>i
GOOSE BAY, LABRADOR
CRETE, GREECE
bridges
MACKINAC STRAITS-ST. IGNACE,
MICHIGAN
HUDSON RIVER-TARRYTOWN, NEW YORK
PENNSYLVANIA
DELAWARE RIVER-EDGELY,
CUYAHOGA RIVER-CLEVELAND, OHIO
ILLINOIS RIVER-PEORIA,
ILLINOIS
signal corps depot
TOBYHANNA, PENNSYLVANIA
The above partial list of current projects reflects the versatility.
in all fields of construction, which enables Merritt-Chapman & Scott
"YOU NAME
to sty*
IT, WE BUILD IT!"
Meriutt-Chapman & Scott
CORPORATION
Founded In
260 Madison Avenue
Product* »nd Service* of Major
MARION POWER SHOVEL CO.
Newport, Kentucky
Rolled Sheets
4 Coils
Hot
Power Shovel*
Rolled Sheets
Hot
Excavating Equipment
Rolled Pickled Sheets 4
Coltf
Galvanized Sheets
to 60 cu. yd*.
Galvannealed Sheets
Truck Cranes
from
Y.
NEWPORT STEEL CORP,
Cold
Marion, Ohio
S4
1860
New York 16, N.
Subsidiarie*:
THE OSGOOD CO.
from
•
Colorbond Sheets
15 to 25 tons
Electrical Sheets
Mobilcranes
Alloy Sheets
from 25 to 45 tons
4 Plates
Line Pipe
Electric Weld
Log Loaders
Rooting, Siding &
Accessories
I
CONNELL
FITZ SIMONS A
DREDGE it
under construction....
MILTON STEEL PRODUCTS
DIVISION
'
DOCK CO.
Chicago. Illinois
Milton. Pennsylvania
Construction
C.
A.
Carbon 4 Alloy
LTD.
Steel Bar#
Itar Size Shapes
Toronto, Canada
Confidence
■ *
Justified
Where
This
Flag
Construction
UTAH RADIO PRODUCTS
CO.. INC.
THE SHOUP
VOTING
Huntington, Indiana
MACHINE CORP.
\
TV 4 Radio Cabtneta
**
New York. New York
Voting Machines
i
of all sizes
PITTS GENERAL
CONTRACTOR
Vour
,
,
Deformed Reinforcing Rars
.
Speakers 4 Transformer)
Electronic Component#'
;
i
118
The Commercial and Financial Chronicle
(374)
GROSS
SALES
Television-
of
Three Funds
Electronics Fund for the calendar
amounted
to
increase
year
over
238%
$29,204,118,
the
sales
a
Mutual Funds
of
$8,616,037 in 1953.
Sales
combined
with
The formation
of $43,843,642 in
crease
Record Year
assets last
One
year,
of
assets
$28,835,374
a
year
record total
Net asset value per
of
1954
pared
with
close
of
shares
$6.79
1953.
during
share
a
calendar
the
13% of sales
crease
funds
mutual
and
President of
funds
market
which
as
primednvestment device, and
a
swelled
rities.
the
value
of
funds
the
'•
Gross
005,000
in
1953
Repurchases,
1954
,■
jointly
$672,
Bradford
Ihe
than
The
A
fund
mutual
diversified
with
portfolio
selected
securities
for
1
be obtained
from investment dealers
The Parker
200
1954
were
or
Corporation
stantial
"Because
Dec. 31,
Total
Net
Assets...
'54
Month of
December
Sales
of
$100,230
$270,594
31,836
98,709
107,300
a
Purchases and
Sales
of
Portfolio
4th Quarter
Dec.
/the
Purchases
Year
3rd Quarter
$388,479
Sales
Year
$332,987 $1,363,398
231,430
257,048
Holdings of Cash,
designed to provide
Dec.
a
U.*Sj
31, 1954
1954
Not
968,033
,/
than
Collected
Governments and Short-Term Bonds
$308,701
^0,
Nov.
managed investment.,
in
y
Sept. 11, 1954
295,860
$285,893
^53
*
From—
Investment
resulting '
4th Quarter
*
Income
Other
f $49,657
99,177
14,013
311 i
Sources
„
UT THE FACTS AND FREE nOSHCTVS
\ $155,924'
'»
-
U8HIC DEVELOPMENT SECURITIES CO.
Number of
-Month of
1033 THIRTIETH STREET, H. W.
December
WASHINGTON 7, D. C
6,882
Year
Year
i
$200,102
1
129,933
5 '
•
Total
of Wolfe, Corcoran'& Under!
Consulting Actuaries, for specific
r>
*
evaluation
jn
addition
7,300
=
to
-
Mr
Smith
life
often
to
to
in-
insurance
difficult
Smith
of
for
a
this
fund
this
of
M.
Best
Company,
consists
the
of
board
J,
C.
$63,675'
<
$330,587
/
/
*
/
should
situation,"
Life
&
Accident
Insurance
1954,
State »of
buy
of
as
of
di-
a
more
its
than
in
assets
one
the
se-
company
10%
of
nor
.
Stock
Inc. reports
offices
it
Fund
0f
^s
one
from
its
,,
of securities
of-any
one
Birmingham, Ala., that
already sold 20,000 shares
authorized
capitalization of
rnillion shares of $1 par value
st0ck.
The
open-end
investment
company> which will deal
in
Ufe
stocks,
sold
iegs than
insurance
the
primar_
company
original
issue
20 purchasers at
share, and will offer to
per
public
another
30,000
shares then to be offered continu-
ously at
offering price
an
will; include
Periodic
4tb Quarter
v
!
plan investments, with
3rd
and later payments of no less than
$50, arexto be handled through the
Fund
Common Stock Investment Fund
t
\
■
Inyestm^*£ objectives. -«f this Fund
irr.
long-teFnr-' capital) land
income
•
V\
V'
growth
for
its
20,462
shareholders.
„
*'■
17,781
-
$
Year
Quarter
'
67,462 (est.)
—
Chicago
Prospectus
upon
request
'
Custodian Funds
—
Atlanta
Los Angeles
-
wmmmmmmmm® mm. wmmm wmmmmmmmmmm
I
\
•
Keystone Fund
ofC
ana
Mutual Investment Funds
•
da, Ltd.
K/td Series
• Balanced Series
a
mutual
mon
investment
a
fund
offering
diversified list of
com¬
RESERVES:
INCOME:
stocks selected for their investment
quality and income possibilities.
a free copy of the
booklet-pros¬
pectus by mailing this advertisement to
Send for
CALVIN
-A
objectives of
Series B-l
long-term
K-l, S—1 and S-2
GROWTH:
fully managed Canadian
Investment
/
Series B-2, B-3, B-4,-
•
Company seeking
Preferred Stock Series
J
• Income
CAPITAL GROWTH and
1
Series
"
certain
Series K-2, S-3, S-4
TAX BENEFITS
under
I Stock Series
Canadian Laws
!.
Speculative Series
Prospectus from
BULLOCK
your
local
investment
dealer
or
# Growth Stocks Series
Established 1894
Xke
ONE WALL STREET, NEW YORK 5
50
Kame_
0
Keystone Company of Boston
Congress Street
Boston 9, Mass.
Information Folder and
Prospectus
on
Request
NATIONAL SECURITIES & RESEARCH CORPORATION
120
Address.
a
minimum initial payment of $100
<
eystone '
is
which
8.25% sales charge,
an
class
A
-1954-jL
r-;
\
DIVIDEND
investment in
shares
price, with additional
same
company.
any
)
-
to
price
a
w\
-
*
investment
main
in
has
at the
Maryland
any
Fund,
the
laws
_.
Insurance
Meanwhile, Life Insurance Stock
0f $5
under
,
Life
the
management investment
5%Vof
curities
_
Lord, Abbett & Co.
Witk tke
Com-
George W. Wells, President
and Director of Northwestern Na-
pany;
incorporated
was
^237,410
t
of
Brad-
of
Life"& Casualty Insurance
Company, who will act as Secre-
ily
said.
company
3,
find
alleviate
New York
SHARES
,who
is also Vice-President of Alfred
' 63,621
/' / 144
552
r
\
-t
studies.
$173,645
Accumulation Plans Opened " /
November
Alfred*
and
\:—\
••
-
of
Counsellor,
1953
|3rd Quarter f
,$56,436
Security Profits
from Atomic Science.
services
Open-End Funds
U154
in activities
the
Best,. Insurance
,
263,647
'Dec. 31,
Distributions to Shareholders by
variety of
companies participating
life
company and-will not invest more
>.
FUND, Inc.
it is
versified
1953
'
ATOMIC DEVELOPMENT
for
stocks
The
Securities
1 «>r>4
a
of
market.
Mr.
(Excluding U. S. Government Securities)
is
evaluation
"Creation
$217,100
35,005
MUTUAL FUND
MUTUAL
>
sellers
tend
3rd Quarter
$99,858
Shares
4th Quarter
Redemptions
through
in the life insur-
these
Dec. 31,'53
November
utilize
invest-
as
alsff-expects
and
ford, partner in J. C. Bradford
& Co.* investment
bankers,'and
formerly Chain-nan of the Board
stocks is relatively lim-
ited, and
15)54
—
to
advisers
directors
•
market
company
1954
$-3,109,390 $5,814,839 $5,369,700 $4,146,061
in
ATOMIC SCIENCE
Sept. 30, '54
Templeton,
Dobbrow & Vance-Inc.
ment
to
prospective buyers and
Nov. 30,'54
recom-
surance
company securities is a tional
Life Insurance Company;
particularly complex matter," Mr. and Charles E. Becker, President
Smith said, "this new type of fund and Director of Franklin Life Inwill fill a real need in providing surance Company.
a
practical method of investing
' »
(in 000's of $)
invest
interest
business.
ance
the
115
and
insurance, and in the stocks tary and Treasurer of the new
of companies which, through secompany;- Eldon
Stevenson,- Jr.,
curity
ownership, have
a
sub- President and Director of National
respectively,
STATISTICS—DECEMBER 31,
OPEN-END FUNDS
advice
of
value,
of
Berkeley St., Boston, Mass.
OPEN-END COMPANY
provide
option
asset
in
,
together with other forms
surance
$388,479,000^ and sales $257,-
$239,629*000,
investments
The Association reports that 6,882 new accumulation plans,
providing for the regular purchase of mutual fund shares, were
in
the
stocks
of
life
insurance
opened by investors during December. This brings the total ,,<4 v
-companies, many of which have
such plans opened during 1954 to an estimated 67,4-32, -The,.num¬
a
high dollar price per share.
ber of plans opened in the fourth quarter was 20,462 as
against
"In addition," he' pointed
out,
17,781 in the previous three months.
capital and income
may
quarter of
its
invest in the stocks of
companies which write
life in-
bought
fourth
company-'expects
new
also
may
Cash, U. S. Government securities and short-term obligations
held by the 115«mutual funds at the year-end amounted to $308,701,000, an increase of $45,054,000 over the previous year-end
total of $263,647,000.
a
of
long-term growth of
Prospectus
the
.
life insurance company stocks and
(excluding U. S. Government securities)
totalled $1,363,398,000, whereas total sales were $968,033,000. Com¬
parable lull-year figures for 1953 were not collected. Purchases
in
and
mv0lve more
$20,000,000.
concentrate
Net sales in 1954 were $463,115,000 in 1954 compared with
$433,227,000 in 1-953 and $586,880,000 in 1952, the previous high.
Purchases of securities by the open-end companies for in¬
vestment portfolios
substantially exceeded sales during 1954.
048,000 compared with $331',420,000 and
for the same period of 1953.
Weld &
J. C.
Nashville, Tenn.
York
Co
&
the
net
investment policies and the
pyiehase and sale of securities, the
White,
by
New
at
at
mendations with resoect to invest-
nation-wide M.
a
v,„
led
-po
year.
-
INVESTORS
by
holder
company* has. retained
f ,.jnvestroent..., bankers
Company,
the cashing-in by shareholders of mutual fund
securities, was a record $399,702,000 in 1954, compared with'$238,778,00 in 1953 and $321,550,000 in 1951, the previous record year.
INCORPORATE!
month
redeemable
the
an^Vice-.;J},entSj
Alfred, M. Best Cortt
par
this
"or
Securities
fund
value common stock is
expected' to be made the last of
strongly-rising
underlying secu-
$862,817,000 compared with
$782,902,000 in 1952, the second-best
and
the
offering of 1,400,000 shares
$1
a
were
offering of stock, the shares will
its. be
insur-
•
An
of
"i';,
for
sales
life
pany.
record net in¬
a
of
President
date, and as a result of increased institu¬
interest in equities, increased recognition of
public
mutual
assets.
1953,
concentrate
stock
companies, was announced
today
by
Raymond ..T
Smith,
were
in
in
The-company-will not make a
continuous offering of its
shares;
however, 30 days after this initial
ance
for any year to
tional
year
equal to
about 7% of aver¬
or
115
reported, compared with $4,146,061,000
of
amounted- to- $3,826,313,
age
gross
will
investments
$6,109,390,000 on
1954, the National Association of Investment Companies
Dec. 31,
com¬
at
Redemptions
the
Total assets for the
share at the
$10.62,
.was
assets, record
which
and
funds, in 1954, racked up
sales and' record repurchases, with
re-
shares at net asset value
-
mutual
in-
which will
company
deem its
Reported for Mutual Funds
fifteen
and
net sales the second-best in mutual fund
history and topped only
by net sales in 1952, a year in which gross sales were lower but
a year, also, in. which repurchases were much lower.
pre¬
viously.
close
hundred
closed-end
a
Invest in
to
of Life Insurance
Inc.,
vestment
to raise the total to an alltime high of $72,679,016 on Dec.
31, 1954, compared with total net
-
Investors,
By ROBERT R. RICH
Thursday, January 20, 1955
.
Life
Company Slocks
Insurance
market
appreciation of the securities in
the portfolio gave the fund an in¬
.
.
Broadway, New York 5, N. Y.
Number 5396
Volume 181
Bank <for, - Savings
Birmingham.
J.
&
Goddard
II.
New
-•.
The Commercial and Financial Chronicle
•.
of
Trust
Reports
A Doubled Atomic
Fund
Development
stocks, reports "...
planning the formation of
company
are
October.
Mutual
the
that
dicted
Newton
Atomic
Fund,
minimum
pre¬
of
size
(1) On
the
legislative
of
sage
of
One
This
Act
follows:
business."
Uranium
mining & processing $600,000,000
•
of
terprise into the atomic
Research
New
City,
and
has
awarded
ing for
President, has
announced.
to
Prior
Na¬
that
tional
Securi-
will
t i
&
-
e s
the
rate of
S.
Re¬
Wnliam
search,
which
sponsors and
Series
National
the
of
Mutual
fane$||hat the AEC has
ser|w of contracts call¬
a
expansion of the uranium
on
African
South
chief
production
one
of the three
becdrrife
soon
sources
of, supply in the free
When South African pro¬
duction is added to that from the
world.
Hornack
.Belgium
primary
Securities
Investment
financial
pro¬
-
(1954) LIMITED
tremendous
boom
in
occurred not only
this 'country but also in'Can¬
in
This
Africa.
and
ada
boom
A. mutual investment company
of
ance
stock to
watered
principal through
industrial
the
development
past
year,
Mr.
during
Steers
said
features were:
(2) reinvesting all net earnings at low
and
tax cost.
and mining know-how on
Prospectus may be obtained from
of the organizers.
other hand, much progress was
made by the more firmly estab¬
authorized investment dealers or
cal
part
VANCE, SANDERS & COMPANY
lished
companies such as Vanad¬
ium Corporation, Homestake
Mining, Climax Molybdenum and
Anaconda Copper.
111 Devonshire
Boston 9,
strikes
lar
persons
Steen
made
were
Jack
and
2io
tells you
such
Charles
It
Turner.
was
noted, however, that the increase
in certain "penny" uranium shares
ium
SELL MORE-EARN MORE
Profit More from Your Sales
how
you can
partici¬
Build
000—twelve times the correspond¬
complishments
The
first
300
INVESTMENT
COMPANY
ESTABLISHED
your
copy
1932
is available from
investment dealer or
had
has
was
first
full
at
range
times
30
sea
a
revolution
Citizens
of
that of
speed
a
naval
in
Pittsburgh
soon
daily newspaper
reactor, now being con¬
by
the
Westinghouse
SECURITIES COMPANY
Electric
Building
Corporation to the
American
Locomotive
Company
for construction of a portable re¬
actor, the first to be built on a
competitive bid basis. It is ex¬
pected that this reactor will be
the prototype of others to be used
in outlying installations or wher¬
ever
high power costs are now
these
incurred.
In such
actors are
expected to be cheaper,
with
even
areas
the
made in connection
application of atomic
power to large naval vessel pro¬
pulsion and also to aircraft pro¬
pulsion.
progress
SECURITIES OF THE SOUTHWEST
your
or
extended
out
to
General Distributors
.
.
We
help
shares
you
Operating coast-to-eoast,
you
shelf-life
their
Telephone: PReston 0211
Teletype: 110-566
alert,
an
we
We deal
opportunity.
most
popular in¬
know how to help
our men
a
profitable business in
keep
your own area;
you
supplied with tested sales-getting ideas;--We handle all your routine
paper
work and other time-consuming details—leaving you free to
devote all your time to
Salesmen
in
enjoying life
Merritt
One
33
states,
more
made
Hawaii, Alaska, and Western Europe,
are
and earning bigger incomes as part of the King
organization.
man
the business of selling and earning.
Many
over
men
$8,000 in
are
a
earning $20,000
month.
recent
annually.
up
Several others,
$5,000. Our unusual incentive plan gives you the same opportunity.
A
special
top
commission plan is open to qualified men who can
sales team with them.
bring
a
would
operating
You net
on your own as a
more
this
way
than
you
dealer!
Learn how
we
help
can
you
sell
more
and
earn more.
Call
or
write
King Merritt, President, at
KING MERRITT (r CO.,
391 Grand Avenue,
from
LOwell 7-0100
Englewood, N. J.
From New York
INC.
City Dial MUrray Hill 8-8840
days. Such
could be carried
a
cost
of the
of
about
irradiated
Vzc
per
product.
By similar treatment potatoes can
be stored at moderate tempera¬
tures with no evidence of spoil¬
A
SPECIALIZING
NATIONWIDE
ORGANIZATION
IN
MUTUAL
as much as two years.
products were found harm¬
less to human beings and in the
age
an
more.
earn
build
such
exclusively—America's
for
Both
National Bank Bldg., Houston 2, Texas
with
.
twenty-one
processing
at
pound
BRADSCHAMP & COMPANY
sales
was
Radiation-pasteurization of
meat products has
(4)
food
your
personal estate of $5,000 to $50,000.
Fund
and
more
pre-packaged
three
be obtained from
from
unusual profit-sharing plan enabling
the
with
A MUTUAL FUND INVESTING IN
an
re¬
present status of
technology.
Significant
reactor
sell
strategy.
will
structed
Russ
Mutual
in
at
conven¬
by lamps lit by the first full-scale
power
a
more
King Merritt & Co., Inc., offers
sub¬
a
tional submarine and has worked
NORTH AMERICAN
San Francisco 4, California
build
you to
vestment.
surface
be reading their
Your free
submarine
atomic
and
profit
progressive firm that has
recorded.
were
This submarine has
lease
COMMONWEALTH
Yes—now you can
reactor
develop¬
front several significant ac¬
the
On
trials.
industries.
Personal Estate
a
$25,000,-
ing period in 1953.
launched
companies in 30 different
over
was
nine
first
the
in
exports
months of 1954
pate in the ownership of over
Union
ANGELES
West Seventh Street
by
Vernon Pick,
as
LOS
South I.aSaile Street
no
Broadway
dol¬
Street
Mass.
CHICAGO
YORK
NEW
bi
multi-million
Remarkable
ment
This free booklet-prospectus
local investment dealer
of Canadian stocks
of diversified holdings
promo¬
geologi¬
the
On the
insufficient
(1) investments in the
:
and industries of Canada by means
resources
ters, inadequate dollar capitaliza¬
tion and excessive share capital¬
and
incorporated
seeking long-term growth of
imCaiiada;
was
unfortunately marred by a very
large number ^of new uranium
issues, many, though not all, of
which were marred by the issu¬
(3)
may
127
Congo,
the outstanding
Prospectus
on page
source,
grams, was
Accounts and Finance.
Continued
arena.
A
energy
and
educated at New York
University's School of Commerce,
.
General Fund
-
capitalization
company
by United States investors,
en-
to
15%
from
previously the was due to speculative activity
it is seen that a on the stock market rather than
$200,000,000 figure for each of the the actual uranium ore blocked
Funds, Mr. Hornack was for 25
three major areas (U. S., Canada out
or
mined.
The
Canadian
years
associated with J. & W.
and
of
Gunnar
Mines,
Ltd.,
Africa)
is reasonable, Mr. strike
Seligman Co. as a member of the
Steers
observed.
This figure is moved closer to reality with the
firm's Statistical Department and
buttressed, he noted, by dollar successful flotation of $17,000,000
Investment Advisory Division.
value relating to thorium, lithium, worth
of debentures with war¬
Mr, Hornack, who has been ac- beryllium and zirconium, all of rants attached. Indicative of the
.tive in investment trust company which have been
greatly influ¬ trend in South Africa was the re¬
mergers,
individual
corporation enced by their atomic application. cent announceemnt by their gov¬
reorganization work and on re¬
ernment that the value of uran¬
In a review of atomic
manages
General
Canada
uranium mining
ization,
expan¬
the Colorado
Louis, Mo., and
at
Fernald, Ohio, totaling more
than $75,OOO,0Q0> It is known that
Canadian
production
has
kept
pace with
production and
Jr.,
joining
the
Plateau and at St.
Si¬
son,
at
U.
processing plants
ment commit¬
mon
by
Materials
Raw
running
is
sion is the
invest¬
H. J.
of
Indicative
of
tee,
statement
early 1956.
corpora¬
tion's
figure is based in
the
Director
dustry
a
the
200,000,000
$100,000,000 ap^bally and may be
expected to db&ole that figure by
ap¬
member
supply
to the effect that the domestic in¬
Corp., 120 Broadway,
pointed
investment
pos¬
23%.
(2)
40,000,000
equipment
upon
AEC's
York
been
Canada
(1954) Limited, largest Ca-
Act
it
in-
processing
The uranium
part
investment
advisor, has joined the public util¬
ity division of National Securities
&
and
radioisotopes-—-
Specialized
National Securities
radiation
of
strumentsf
William Kornack Joins
Hornack,
$54,000,000
Fund
owned
fostering the entry of private
front,
Energy
makes
materials
atomic
Manufacture
William
THE
nadian
,
underwriting
in
the
mutual fund designed to provide
life
of
119
the pas¬
was
Atomic
the
1954.
services
will
the
privately financed atomic in¬ sible for private enterprise to own
a
medium for diversified invest¬ dustry could be expected to ex¬ reactors (atomic furnaces) and to
ment in life stocks. This fund will ceed $840,000,000.
This figure is lease fissionable material (atomic
It also> broadened oppor¬
place its portfolio in investments to be contrasted with the figure fu.el).
which was pre¬ tunities available in the patent
in shares of the 20 largest stock of $459,000,000
the Joint
Committee' field.
life companies and
is patterned sented to
not only for individuals but for on Atomic Energy, U. S. Congress,;
The
other
was
Congressional
on May 11, 1954.
Mr. Steers broke action
institutions and trustees—and for
in
lifting
depletion
al¬
-down the
$840,000,000 figure as lowances on uranium and otheruse by agency organizations in the
a
organization
the
Atomic Industrial Forum which is
Industry in '55
two advances.
established
was
This
supplement
^
we
cleary Society
Atomic Fund Head Predicts
J. H. Goddard & Company, a*
During the year 1955,
Boston firm dealing in life insur¬ I. Steers, Jr., President of
ance
(375)
case
of
ally
preferred
the
potatoes
by
a
were
actu¬
food-taste
panel.
(5) A technical organization to
fcje known as the American Nu-.
OFFICES IN PRINCIPAL
CITIES
FUNDS
120
The Commercial and Financial Chronicle
(376)
The following statistical
Indications of Current
latest week
week
Business Activity
IRON
Week
Ago
on
that date,
Steel
(net tons)-
oil
Crude
BANK
condensate
and
oil
fuel
Finished
unfinished
and
(bbls.)
Distillate
fuel
Residual
oil
fuel
(bbls.)
freight loaded
6,321,200
6,271,800
7,296,000
7,105,000
7
7
7
25,392,000
25,319,000
24,589,000
2,844,000
2,606,000
2,685.000
2,729,000
12,444,000
11,846.000
10,777,000
10,34b,0(K
7
8,876,000
8,311,000
7,880.000
24.134.000
8,599,00*.
Jan.
Jan.
Jan.
at
157,228.000
160,956,000
7
7.
7
7
Jan.
at.
150,653,000
160,324,000
29,281,000
34,210,000
CONSTRUCTION
ENGINEERING
124,067,000
U.
construction
Private
—
construction
State and municipal
Public
Federal
COAL
lignite
and
coal
Bituminous
Pennsylvania anthracite
52,803,000
Based
529,4524
653,531
624,220
605,204
,
545.211
'
y
8
507,424
565,545
$285,284,000
(in
output
$364,734,000
$414,944,000
$271,757,000
232,952,000
143,677.000
181,992,000
128,080.000
Finished
steel
DUN
Pig iron
(per gross
shipped
64,437,000
42,197,000
28,770,000
87,817,000
84,039,000
105,509,000
84,366.000
27,821,000
88.591.000
66,281,000
42,509,000
$873,101,000
$767,804,000
$574,079,000
S.
DEPT.
OF
97,903,000
22,571,000
21,807,000
8
8,510,000
7,430.000
8,780,000
512,000
631,000
8
106
80
224
94
*9,928,000
9,833,000
9,909,000
200
198
208
200
4.797c
4.797c
4.634c
.Jan. 11
$56.59
$56.59
$56.59
$56.59
.Jan.11
ton)
Scrap steel (per gross ton)—
$34.33
$34.17
$32.00
$28.83
Electrolytic
(E.
M. J. QUOTATIONS);
&
.Jan.12
refinery
Export
Straits
tin
Lead
Louis)
(St.
Zinc
Louis)
(East St,
MOODY'S
31.225c
30.600c
87.125c
86.500c
89.875c
84.500c
15.000c
15.000c
15.000c
13.500c
14.800c
14.800c
14.800c
13.300c
11.500c
.Jan.12
at
11.500c
11.500c
25
22
24
126
113
410
392
35
41
53
private
57
51
299
utilities
318
301
12
.
building
12
9
941
1,082
947
23
construction
24
42
353
360
391
104
116
131
181
136
154
27
31
23
Other
nonresidential
building
48
Highways
10.000c
Sewer
300
-
water.
and
95
390
235
84
—
53
90
Military facilities
Miscellaneous
87
75
45
96
14
98.84
97.41
enterprises
110.34
110.52
110.70
106.92
Jan.18
114.46
114.66
115.04
112.00
112.19
112.37
109.06
COMMERCIAL
Jan.18
66.
12
10
733,000
$769,000
$552,000
114.5
111.81
Jan.18
18
64
114.6
98.13
19
60
10
public service
Conservation and development
97.88
_Jan. 18
corporate
17
29
34
public
Jan.18
U. 8. Government Bonds
Average
41
18
336
Hospital and institutional
PRICES DAILY AVERAGES:
BOND
45
54
Industrial
29.125c
.Jan. 12
at.
30.975c
58
Educational
29.700c
.Jan.12
at
at—
29.700c
.Jan.12
York)
(New
Lead (New York)
29.700c
.Jan. 12
at
29.700c
154
106
utilities
Nonresidential
copper—
Domestic refinery at
113
131
24
institutional—
and
79
308
29
____
177
192
89
53
i.
recreational
163
197
182
Residential building
METAL PRICES
94
106
garages
building
_/_
and
other
All
Public
523
17
and
nonresidential
Other
25.
541
94
buildings-
Telephone and telegraph
4.797c
915
24
59
restaurants
loft
Railroad
Jan.11
1,034
102
200
and
construction
Public
2.077
1,180
551
(nonfarm)
Miscellaneous
Farm
:<
1,306
22
building
Educational
9,014,000
;
95
alterations
Religious
.
$3,024
-
2,395'
169
Stores,
Other
<
1,150
Industrial
543,000
■
1,267
Nonhousekeeping
8,190,000}
489,000
,
$3,477*.
■;.j
'
2,322
building (nonfarm)—.
dwelling units
Nonresidential
t
•"
construction
and
•,
r" V
$3,263
Commercial
Jan. 13
10,225.000
between
_____
CONSTRUCTION—U.
Additions
&
lb.)
(per
and
._
New
106,173,000
8
Jan
—
235,361,000
.1'
COMPOSITE PRICES:
IRON AGE
stored
Hospital
INDUSTRIAL)
29o[209!ooo
16.8«o!ooO
'
RESERVE
BRADSTREET, INC
154.303,000
12,056,000
;TV JLABOR—-Month p|<$oyember (in millions):*'
V; Tdtal; utpw construction
89,675,000
115,638,000
Jan. 15
AND
(COMMERCIAL
FAILURES
$273,830,000
164,294,000
9,963,000
Total
$195,848,00(
249,096,000
13
*3
13
13
Jan-
kwb.)
000
$247,615,000
182,254.006
_
______
goods
on
INSTITUTE:
ELECTRIC
Electric
BANK
31:
shipments
Social
EDISON
RESERVE
Dec.
Residential
Jan-
(tons)
(tons)
AVERAGE
SYSTEM—1947-49
of
foreign countries
49.668.001
602,203
8
YORK—As
Warehouses, ofiice
SALES INDEX—FEDERAL
= KM)
STORE
DEPARTMENT
FEDERAL
—
8163,596,000
OUT¬
Domestic warehouse credits
S. BUREAU OF MINES)*
(U.
OUTPUT
AgO
$186,317,000
ACCEPTANCES
_
Private
Jan.
Jan—-—Jan.
Jan.
Jan-
construction
S.
Year
Month
106,341,000
51,361,000
52,065,000
ENGINEERING
—
Prevloua
OF
thousands)
Exports
NEWS-RECORD:
Total
NEW
Domestic
28,204.00.
103,631,000
28,465,000
105,132,000'
OF
BUILDING
—Jan.
(number of cars)
GOVERNORS
Imports
Dollar exchange
pipe lines—
at:—
OF
of that date;
are as
6,960,000
freight received from connections (no. ot cars) —Jan.
Revenue
CIVIL
6,342,950
117,389,000
AMERICAN RAILROADS:
ASSOCIATION OF
Revenue
(bms.)
gasoline
(bbls.)
6.574,400
7
Jan.
Jan.
at
oil
7
Jan.
Jan.
Stocks at refineries, bulk terminals, In transit, In
of quotations,
RESERVE SYSTEM—Month
(in
DOLLAR
STANDING
output
Kerosene
1,766,00C
Jan,
;
(bbls.)
Residual fuel oil output (bbls.)
Distillate
1,726,000
Jan.
(bbls.)
(bbls.)
(bbls.)
output
Kerosene output
*2,007,000
of December
(bbls. of
output—daily average
Crude runs to stills—dally average
Gasoline
DEBITS—BOARD
BANKERS'
gallons eacn;;
42
§1,989,000
cases
either for the
are
Month
74.1
INSTITUTE:
PETROLEUM
in
or,
THE FEDERAL
ingots and castings
AMERICAN
Thursday, January 2ft;-1955'
Latest
Equivalent to—
Jan. 23
.
production and other figures for the
cover
Ago
72.4
*83.2
.
Dates shown in first column
Year
§82.4
Jan. 23
.
month ended
Month
Week
INSTITUTE:
STEEL
AND
operations (percent of capacity).
steel
Indicated
tabulations
month available.
Previous
Latest
AMERICAN
or
or
.
Aa
All
other
public
PAPER OUTSTANDING
RESERVE
BANK
NEW
FED¬
ERAL
100.65
As of Dec.
103.70
104.4b
110.88
111.07
111.25
107.44
111.62
111.62
112.00
108.88
Jan. 18
2.65
2.63
2.58
2.68
Jan.18
3.15
3.14
3.13
3.34
2.93
2.92
2.90
3.07
Jan.18
3.06
3.05
3.04
3.22
103.9
107.0
Jan.18
3.16
3.15
3,14
3.36
Dairy products
106.6 '
106.7
110.5
Jan.18
Industrials
106.56
105.00
108.70
Jan.18
Group.
110.52
105.00
108.52
Jan.18
Group
Utilities
Public
110.34
104.83
Jan. 18
Railroad
110.15
Jan. 18
Jan.18
Baa
3.46
3.45
3.45
3.71
Fruits
109.6
111.1
107.4
113.7
115.7
119.5
119.5
118.9
129.2
129.0
127.3
108.7
108.5
107.2
Group
U. S. Government Bonds
corporate.
Average
Aaa
Aa
Baa
Railroad
Public
Jan. 18
Industrials
3.24
3.24
3.11
3.10
3.31
Jan. 18
3.08
3.08
3.06
Jan. 18
413.4
412.1
406.8
INDEX
Orders received
Production
(tons)
Jan.
—
—
at end of period
249,382
214.669
262,344
204,172
140,640
258,595
212,013
Jan.
86
47
94
AVERAGE
=
406,002
363,024
398,913
414,047
Jan.
8
—
SPECIALISTS
106.79
ON
N.
Y.
STOCK
1,444.572
1,036,822
1,334,197
752,352
Jan.
1
$68,068,161
$50,161,993
$65,032,021
Jan.
sales
1
1,529.630
1.173,155
1,491,362
1
8.665
7,016
9,770
1
1,520,965
1,166,13)
1,481.592
863,240
Jan.
1
$65,728,335
$52,646,036
$67,413,481
1
Jan.
125.9
123.2
113.8
113.4
113.4
106.8
106.9
103.9'
120.0
120.1
120.2'
1,141,303
1,503,092
1,397.014
care
and
Other
1
535,360
398,980
512,870
ACCOUNT
OF
MEMBERS
Cotton
Stocks
330,230
3.98,980
512,870
330,230
Stocks
394,450
284,400
361,420
201,400
Stocks
540.720
550,440
502,940
171,520
Dec. 25
ACCOUNT
OF
14.514,540
15,402,950
13,825,700
15,064,980
15,943,670
14,328,640
Stocks
6,591,030
"MEM-'
>
237,277,000
817,314.000
1,016,037.000
161.193.000
161,362.000
221.226,000
156.937,000
Stocks
148,136,000
151,011,000
243,422
163,022
1,790,150
1,612,870
1,579.4?0
614.700
Dec. 25
250,440
278,860
295,180
87,620
Dec. 25
1.285,780
1.430.720
1.296.200
1,536,220
1,709,580
1,591,380
330,412
361,549
312,215
291,966
362,365
<•.—
138,233
144,362
167,891
138,337
132,639
166,859
546,480
Stocks
Nov.
Produced
199.049
239.802
184,827
214,379
——
194.068
224,466
252,057
30
;
52,827
86,137
86,053
(tons)
Shipped (tons)
Linters (running bales)—
458,860
-Dec. 25
sales
320.340
—
:
«
—.
(tons) Nov. 30
Produced
Dec. 25
Nov. 30
(tons)
'
Hulls—
203,556
-
.Dec. 25
purchases
505,160
.Dec. 25
.Dec. 25
429,010
.Dec. 25
452,510
543.970
23.500
Other
sales
Total sales
465.700
156,400
34.000
>
25.420
409.010
131,870
533,410
434,430
134,370
transactions Initiated off the floor—
622.661
629.150
533,434
Shipped
Grabbots, etc.
.Dec. 25
99,200
68,810
73,420
26.040
Other
.Dec. 25
630.982
694,921
558,390
215,811
.Dec. 25
730,182
763,731
631,810
Stocks
Nov.
1.097
1.785
2,027
1,908
6,362
4.881
7.226
3.583
(1,000
1,262
*~'-2,531
1,771
3,230
3.479
2,102
2,101
2,450
S30.204.308
-1—'——-1————-—
Produced
337,730
Short sales
1,230
1,739
Stocks Nov. 30—————
Motes,
.Dec. 25
purchases
——'—-T.
;_—
Hull Fiber (1,000-lb. bales)—
2.500
499,410
161,371
—
Shipped
Short sales
Total
143,804.000
249,924.000
170,682,000
712.619,000
30
(tons)
Produced
stocks In which registered—
purchases
105,742,000
219,744.000
251,547
Nov.
(pounds»
(pounds)
(tons)
Shipped
Other transactions initiated on the floor—
Other
244.267,000
171,510,000
Cake and Meal—
6.419.510
Dec. 25
Short sales
Total
(pounds)
Produced
i&liARES):
FOR
763,154
2,730,003
215,781,000
30—
(pounds)
(pounds)
Consumption
TRANSACTIONS
683,980
1,959,057
Refined Oil-
STOCK
Total sales
f
659,109
2,441,751
i
(pounds) Nov.
Produced
BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Other
of
(tons)
(tons)
Shipped
Dec. 25
Transactions of specialists In
Total
COMMERCE—Month
Crude Oil—
535,360
sales
BOUND-LOT
PROD¬
(tons) Nov. 30
1
sales
Other
SEED
Seed—
Received at mills
1
Total sales
,
OF
UCTS—DEPT.
Total Round-lot sales—
Short
COTTON
AND
SEED
Jan.
shares
—
November:
EXCHANGE AND ROUND-LOT STOCK TRANSACTIONS
FOR
_.
recreation
goods and services
Jan.
sales
THE N. Y.
91.3
130.1
126.1
$27,244,610
Jan.
ON
116.2:
91.1
apparel
Crushed
TOTAL ROUND-LOT STOCK SALES
107.3
100.7
116.7
125.0
Bound-lot purchases by dealers—
of
105.5
99.6
91.2
by dealers—
Short sales
Other
girls'
106.4
-
127.6
Other
6,368
Jan.
1
1
Number of shares—Total sales.
Number
and
116.9
104.6
99.5
boys'
117.6
106.5
117.0
and
Women's
869,608
Jan.
sales
oil
104.6
COTTON
value
Bound-lot
117.8
Men's
$29,001,891
sales
short
other sales
Dollar
1
dealers (customers' sales)—
Customers'
103.3
Reading
Dollar value
Customers'
125.9
105.6
Personal
Jan.
Number of shares—Total
123.8
105.4
fuel
and
Apparel
107.53
(customers' purchases)!—
Number of shares.
Odd-lot purchases by
124.2
fuels
Medical care
106.54
EXCHANGE COMMISSION:
SECURITIES
Odd-lot sales by dealers
114.8
Transportation
106.61
Jan. 14
10(1
AND
DEALERS
LOT
electricity
Footwear
STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODD-
EXCHANGE
and
120.6
Household operation
78
OIL, PAINT AND DRUG REPORTER PRICE INDEX—
1949
foods at home..
:
Gas
122.7
103.5
fish
vegetables
Rent
230,479
Jan.
—
(tons)
Other
112.0
111.4
Housefurnishlngs
of
orders
poultry and
111.8
110.9
123.1
bakery products
and
115.0
111.1
110.1
—
home
at
Housing
Solid
(tons)
activity:
Percentage
November:
Meats,
417.9
'■
1947-49=100
—
—
Cereals and
ASSOCIATION:
PAPERBOARD
NATIONAL
INDEX
1
items
Food
3.23
Group..
of
YORK—
(OOO's omitted)
PRICE
Food
3.48
3.12
Group.
COMMODITY
MOODY'S
Unfilled
3.25
Jan.18
Group
Utilities
Month
All
BOND YIELD DAILY AVERAGES:
MOODY'S
CONSUMER
31
OF
—
$84,072,977
$99,941,786
pounds*—
30——_—1—
.1
:___:
241,851
sales
Total sales
Total round-lot transactions for account of members—
Total
2,740.691
Dec. 25
purchases
2.963,270
2,578.564
1,108,830
Dec. 25
373,140
381,670
394.020
Other
Dec. 25
2,345.772
2.625.051
2.263.600
806,541
Dec. 25
2,718,912
3.006.721
2,657.620
922.701
sales
Total sales
LABOR
—
PRICES,
(1947-4#
NEW
=
SERIES
—
8.
DEPT.
i
«
4
foods-
Meats
other than farm
OF U. S.
Month of September:
Net railway
Total
r
operating income
.
16.587.549
110.1
•109.8
109.4
110.9
...
and foods
,
t
Jan. 11
Jan. 11
92.7
*91.2
90.2
98.5
103.7
103.3
103.4
106.1
86.5
*84.8
84.9
95.4
Jan. 11
115.1
•115.1
114.7
114.5
Income
available for
Other deductions
Net
income
*
—-
——'——11
j.———
120,959,425
3,216.570
3.892.944
92,949.535
fixed charges-'———
after fixed charges—:
21,017.639
102,285,191
3.842,322
—
18,212.214
96.791,857
.—■—-—
income
Income
.
-.Jan. 11
.,
1
All commodities
INCOME ITEMS
Other income
OF
Jan. 11
products
Processed
——-——
Miscellaneous deductions from income-:—
commodities
Farm
116,160
1 DO) t
Commodity Group—
All
U.
—__.
CLASS I
RYS. (Interstate Commerce Commission)—
SELECTED
Short sales
WHOLE8ALE
Produced
Shipped
99.068,621
117,066.481
61.275.664
67.233,684
83,360,616
3,024.027
2.946,986
2.867,233
80.493,378
64,209,657
58.328,678
—
44:212,918
42.493,759
Depreciation (way & structure & equipment)
43.730,891
Federal income taxes
18.526.551
19,998.880
56,400,565
17.732,463
21.871,146
17.410.173
2,510.355
4,536.959
2,933.279
2.93
3.11
3.47
..
.
„
Dividend appropriations:
•Revised figure,
fIncludes 795,000 barrels of foreign crude runs. ? Based on new annual capacity of 125,828.310 tons
1954 basis of 124,330.410 tons.^ tAll-time pew high record.
tNnnfber of orders not reported since introduction of Monthly Investment Plan.
:
of Jan. 1. 1955, as against the Jan. 1,
'
as
i
On common stock—
preferred stock
——
Ratio of income to fixed charges
On
:-—
Volume 181
Number 5396
.
.The Commercial and Financial Chronicle
.
(377)
if INDICATES
Securities Now in Registration
if Allied Stores Corp., New York
(2/3)
Jan. 13 filed 300,000 shares of common
stock
—Theodore
(no par).
Price—To be related to current market
price at time of
offering.
Proceeds
For general
corporate purposes.
—
Underwriter—Lehman Brothers, New York.
Aluminium Ltd.
Dec. 18 filed 904,314 shares of
capital stock (no par)
being offered for subscription by stockholders of
record
Jan. 7, 1955 at rate of one new
share for each 10 shares
held; rights to expire on Jan. 31.
Price—$47.60 per share
(United States funds) or
$46 per share (Canadian dol¬
lars).
Proceeds—For expansion
Dealer-Man¬
program.
agers—The First Boston
Corp.; A. E. Ames & Co., Ltd.;
Morgan Stanley & Co.; and
White, Weld & Co.
Amalgamated Uranium Corp., Salt Lake
City, Utah
of
notification) 2,500,000 shares of com¬
(par three cents). Price—10 cents
per share.
Proceeds—For exploration and
development costs. Office
Sept. 1 (letter
mon stock
—218 Atlas
Bldg., Salt Lake City, Utah.
Ned J. Bowman
Co., the same city.
Amcrete Corp.,
Briarcliff, N. Y.
Dec. 6
(letter of
notification) 7,500
ticipating preferred stock. Price
share). Proceeds—For
working
Underwriter—
shares
of
6%
par¬
At par ($10 per
capital. Business—Dis¬
tributor of prefabricated
concrete wall panels and butresses made of steel
—
reinforced dense
concrete, etc.
derwriter—None.
Un¬
American Duchess Uranium
& Oil Co.
Dec. 9
mon
(letter of
notification) 1,500,000 shares of com¬
(par five cents). Price—20 cents
per share.
ir American Service
Publishing Co., Inc.
11
(letter of notification)
50,000 shares of class A
common stock
(par $1). Price—$5 per share.
Proceeds—
For
working capital and general
corporate purposes. Of¬
fice—400 Walker
Bldg., Washington, D. C. Underwriter
T.
Ludlum
&
Associates, Ltd., Washington,
C.
ceeds
ments
—
in
To repay bank loans and for additional invest¬
subsidiaries.
Underwriters—W. C.
Langley &
Co. and The First Boston Corp.,
if American Water Works
both of New York.
Co., Inc.
the rate of
Feb. 9; rights to subscribe Feb. 23.
bank loans and for additional investments
Underwriters—W.
First Boston
C.
in
interest
at
Corp., both of New York.
rate
Anticline Uranium,
Inc., San Francisco, Calif.
Oct 28 (letter of notification)
2,970,000 shares of class A
capital stock. Price—At par (10 cents per share).' Pro¬
ceeds—For
exploration and development expenses. Of¬
fice—995 Market St.," San
Francisco, Calif. Underwriter
—Coombs & Co., of Los Angeles,
Inc., Los
Angeles, Calif.
28
Office
purposes.
offered
Jan.
six
27,
Canteen
for
1955
shares
Co.
of
97,481 shares of
subscription
the
on
held;
basis
rights
Kingman, Ariz.
Co., Inc., New York.
&
—
America (1/28)
common
by
of
stock
(par $5) to
stockholders
one
of
share
new
record
for
each,
to
expire on Feb. 14. Price—
To be determined
shortly before the making of the
offer.
Proceeds—Together with other funds, to purchase
262,500 shares of common stock of the Rowe Corp. Un¬
derwriter—Glore, Forgan & Co., New York.
Automatic
4
Remote
Systems, Inc., Baltimore
filed
cents), of
public and
620,000 shares of common
which 540,000 shares are to
80,000
shares
to
be
issued
stock
to
(par
51
offered
be
to
underwrite!.
Price—$3.75 per share.
Proceeds—For manufacture oi
Telebet units and Teleac systems and additions to
work¬
ing capital. Underwriter—Mitchell Securities, Inc., Bal¬
timore, Md.
of
4%% per annum, compounded; and
E $2,502,111.10, to
yield 5%. Proceeds—For de¬
velopment and expansion of agricultural, industrial and
commercial enterprises in Israel. Underwriter—None.
Arctic
corporate
Automatic
Aug.
series
Oct.
general
Langley & Co. and The
Ampal-American Israel Corp., New York
Sept. 17 filed $5,000,000 of 10-year 5% sinking fund
debentures, series C, due 1964; $3,125,000 of 5-year dis¬
count debentures, series D; and $4,100,000 of
10-year dis¬
count debentures, series E. Price—Series
C, at par; se¬
ries D $2,507,659.53, to yield return
equal to compound
Childs
Golconda Metals, Inc.
(letter of notification) 292,000 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—For
be
sub¬
411
—
Underwriter—De
York.
Arizona
at
outstanding
Office
Manitoba, Canada.
ISSUE
Dec. 7
•
new
shares.
Price—To be supplied by amendment. Proceeds—To re¬
sidiaries.
REVISED
Gaetano Securities Corp., New
Dec. 28 filed
(Northeastern Water
Co., owner of 1,625,000 of the 2,704,472
shares) will subscribe for 325,000 of the
ITEMS
corporate purposes.
Winnipeg,
to
share for each five shares held about
one new
PREVIOUS
Underwriter—Baruch Brothers
(2/9)
Jan. 13 filed 540,894 shares of common stock (par
$5)
be offered for subscription by common stockholders
pay
—For general
Bldg.,
if American Water Works Co., Inc. (2/9)
Jan. 13 filed 225,000 shares of cumulative preferred stock
(par $25). Price—To be supplied by amendment. Pro¬
stock
Proceeds—For uranium and oil
activities.
Office—Judge
Bldg., Salt Lake City, Utah.
Underwriter—Northern Se¬
curities, Inc., Seattle, Wash.
Jan.
D.
ADDITIONS
SINCE
•
121
Uranium
Mines
(Regulation
Ltd.
"D")
stock (no par value).
1,500,000
shares
Price—20 cents
per
of
common
share. Proceeds
if Axe-Houghton Fund B, Inc., Tarrytown, N. Y.
18 filed 18,500,000 shares of capital stock.
Price—
Jan.
At market.
•
Axe
Jan.
one
Proceeds—For investment.
Science
10
&
Electronics
Corp.
filed
cent).
2,500,000 shares of
Price — $10 per share.
(1/25-2S)
stock
common
Proceeds
vestment in the electronic and atomic fields.
Advisor—E. W. Axe & Co.,
—
(par
For in-
s
"
Investment
Inc., New York. Under¬
Co., Hemphill, Noyes & Co.
Kidder, Peabody & Co., all of New York.
writers—W.
and
E.
Hutton
&
if Baker Truck Rental, Inc., Denver, Colo.
10 (letter of notification) $300,000 of
10-year series
A debentures dated Dec.
15, 1954, and maturing between
1956 and 1964. Price—At par (in denominations of
$1,000
each). Proceeds
For working capital. Office — 2201
Stout St„ Denver, Colo.
Underwriter—Bosworth, Sulli¬
van
& Co., Inc., and Garrett-Bromfield &
Co., both of
Jan.
—
NEW
ISSUE
CALENDAR
Denver.
January 20
Duquesne Light Co
(Bids
11
(Thursday)
Hycalog,
Inc.
(Keith Reed
Preferred
a.m.
EST)
Common
February
January 21
(Friday)
2
January 24
Imperial
D.
&
Co.,
Inc.)
(General
D.
(Offering
ments,
to
Alator
Corp.,
Ltd.;
Streit)
Louis
January 25
E.
Chesler;
Libaire,
Stout
to
stockholders—underwritten
171,875
Consumers
Power
(Bids
and
Co.)
by
to
United
C.
&
Co.)
(City
Sheraton
to
The
invited)
(Drexel
&
Dillon
&
Insurance
(White,
and J.
C.
(Peter
Common
D.
(Bids
&
Common
Co.)
over
$20,000,000
Kansas Gas &
D.
Fuller & Co.
and
97,481 shares
by
Glore
Co.)
be
(Tuesday)
Corp.)
(May
Brothers)
Common
Bikini Uranium
Corp., Denver, Colo.
(letter of notification) 3,000,000 shares of com¬
stock
(par one cent). Price—10 cents per share.,
Oct.
15
mon
Proceeds—For
—
705
exploration and development costs.
First
National
Bank
Bldg., Denver,
Co., New York.
Blue
Canyon Uranium, Inc.
(letter of notification) 6,000,000 shares of com¬
mon stock
(par one cent). Price—Five cents per share.
Proceeds—For mining activities. Offices
1003 Con¬
435,934
Grand Junction, Colo.
Co., Reno, Nev.
Blue Jay
Bonds
$16,000,000
Underwriter
Uranium Corp., Elko,
Oct.
shares
15
mon
stock. Price—25 cents per
(letter of notification)
&
Co.)
—
James
be
to
Union
Power
Bonds
$17,000,000
15
(Tuesday)
•
Nev.
1,000,000 shares of com¬
share. Proceeds—For ex¬
Bowl-Mor
Co., Inc., Everett, Mass. (2/1)
200,000 shares of preferred stock (par $I)
and 200,000 shares of common stock (par 10 cents) to be
Bonds
invited)
be
Continued
$10,000,000
on
page
122
..Preferred
invited)
$6,000,000
(Friday)
Securities
Common
Corp.)
384,861
10
shares
(Tuesday)
a.m.
EST)
Co
(Bids
of
11
Bonds
$12,000,000
May 31( Tuesday)
Alabama
Balti¬
Power, Co
(Bids
$25,000,000
$300,000
E.
ploration and development costs. Office—402 Henderson
Bank Bldg., Elko, Nev.
Underwriter—Security Uranium
Service, Inc., Moab and Provo, Utah.
,
EST)
Ave.,
City, Utah, and 618 Rood
$1,100,000
Green Mountain Uranium
Corp
'(Tellier
CD-
Cole.
Nov. 29
Reed
(Wednesday)
a.m.
be
May
Georgia
Vermilyea Brothers) $298,400
invited)
University
Ave., Provo, Utah.
11
Bonds
a.m.
EST)
$15,000,000
New York
Boston
Pittsburgh
Debentures
to
Co.,
$1,500,000
City
(Bids
Call-Smoot
Big Indian Uranium Corp., Provo, Utah
July 15 (letter of notification) 500,000 shares of common
stock (par 10 cents). Price—25 cents
per share. Proceed!
—For mining operations. Address—Box
77, Provo, Utah.
tinental Bank Bldg., Salt Lake
$750,000
Westpan Hydrocarbon Co
,
Chesapeake & Potomac Telephone Co.
more
invited)
April 15
British Western America Uranium
Corp.__Common
(s.
Co.)
Electric Co
Common
Preferred & Common
Securities
be
to
(Bids
(Friday)
Bowl-Mor Co., Inc
(Aetna
to
11:30
(Bids
,
February 1
$5,000,000
Kansas Gas & Electric Co
Inc
&
—
Nov. 26 filed
Common
Fuller
Curtis)
&
$25,000,000
General Homes, Inc
(S.
Debentures
(Tuesday)
&
February 23
shares
stockholders—underwritten
Forgan & Co.)
$7,000,000
City Power & Light Co
(Lehman
(Thursday)
January 28
to
Morgan
(Bids
Automatic Canteen Co. of America
(Offering
Jackson
(three cents per share). Proceed!
Office—510 Newhouse Buildinf.
expenses.
City, Utah. Underwriter
Phillips Building, same city.
Debentures
EST)
Price—At par
mining
Lake
Underwriter—I. J. Schenin
Minerals & Chemicals Corp. of America__Common
Debentures
Bradford
stock.
—For
fice
(Monday)
America
Webber,
Big Bend Uranium Co., Salt Lake City, Utah
Aug. 6 (letter of notification) 7,000,000 shares of common
$5,625,000
Common
Texas Electric Service Co
Co.)
Investors,
Weld'&'Co.
of
a.m.
March
January 27
Life
Corp.)
Chesapeake & Colorado Uranium Corp.
Common
United States Plywood
Corp
(Eastman,
11
debentures
due
Sept. 1, 1967 presently
outstanding and for expansion program. Underwriter—
G. H. Walker & Co.,
Providence, R. I.
Underwriter—Weber Investment Co., 242 N.
Preferred
Boston
First
February 15
$35,000,000
206,000
Bonds
$12,000,000
(Wednesday)
and The
shares
Water Co..
Co.)
9
subordinated
—
First
Debentures
be
Corp.
(Paine,
of)
(Bids
invited)
Dallas Power & Light Co
(Wednesday)
Philadelphia Suburban
Co. of California
be
February 14
Kansas
January 26
Morgan
Common
by
Artists Theatre
Circuit, Inc...
Montreal
by
$325,000,000
approx.
(Offering to stockholders—underwritten by W. C.
Langley «fc Co. and The First Boston Corp.) 540,894 shares
& Common
$30,000,000
400,121
(Tuesday)
$600,000 5%% 15-year sinking fund subor¬
dinated debentures due Jan.
1, 1970. Price — 100% and
accrued interest. Proceeds—To redeem
6% convertible
Salt
Water Works Co., Inc
Langley & Co.
37,500 shares
Co.)
shares
Common
Co.)
to
(Bids
EST)
285,000
American Water Works Co., Inc
shares
Corp.)
&
&
Telephone
Common
stockholders—underwritten
(Allen
(W.
Bonds
a.m.
Boston
Bradley
Kidder,
McDonald
Co.)
stockholders—underwritten
Stanley
$830,000
Rockland-Atlas National Bank
(Offering
to
&
Corp
February
Co
11
(Offering
General
.Common
&
Reynolds
Invest¬
and
Central National Bank of Cleveland
(Offering
Motors
American
Corp.
Burroughs (J. P.) & Son, Inc.__Debens.
King,
and
(Bids
& Co.; Hemphill, Novei
& Co.;
Peabody & Co.) 2,500,000 shares
&
H.
(Tuesday)
Hutton
(Eisele
Co.
&
February 8
General
Allan
300,000 shares
Common
$2,472,000
Axp Science-& Electronics
(W.
by
A.
Common
Jones
Common
stockholders—underwritten
Ltd.;
(Allen
27,420 shares
Nipissing Mines Co., Ltd
(Thursday)
Corp.
Co.
Common
(Offering to stockholders—underwritten
by Edward
Co.)
Pittston
$025,000
Co
&
(Wednesday)
Brothers)
Associates, Inc., Providence, R. I.
(1/21)
Dec. 23 filed
Jackson & Curtis; Stone & Webster
and Pacific Northwest Co.) $3,600,000
(Lehman
Common
Investing Corp.)
Utilities
Stores
$298,800
Mid-Continent Uranium Corp
Missouri
2
February 3
Allied
Common
Blauner
Webber,
Securities Corp.;
(Monday)
Minerals, Ltd
(Milton
(Paine,
Common
EST) 20,540 shares
p.m.
Beacon
Co.)' 50,000 shares
General Telephone Co. of the Northwest-Preferred
Franklin Trust Co. of
Paterson, N. J
(Bids
&
$8,000,000
November
Common
Southern
9
Co.
(Bids
Philadelphia
(Wednesday)
Common
to
be
invited) 500,000 shares
San
Francisco
Private IFires to all
offices
Chicago
Cleveland
"
J
122
The Commercial and Financial Chronicle
(378)
Continued
holders.
from page 121
of each class of stock. Price
offered in units of one share
—$5.50 per unit. Proceeds—To carry machine leases and
finance manufacturing operations.
Business—Manufac¬
<.,
by lease and sale, a bowling-pin
Underwriter—Aetna Securities Corp.,
distributes
and
tures
setting machine.
I
New York.
Uranium Corp. (2/1)
Jan. 13 (letter of notification) 298,400 shares of common
stock (par 25 cents).
Price—$1 per share. Proceeds—
For exploration and development expenses.
Office—C.
A.
Johnson Bldg., Denver, Colo.
Underwriter—S. D.
Fuller & Co. and Vermilyea Brothers, both of New York
•
British Western America
Burroughs (J. P.) & Son, Inc. (1/25-26)
Dec. 30 filed $500,000 of 6% convertible debentures
•
shares of
80,000
and $4.12% per
loans and cash
debentures
for
interest
accrued
and
and
stock (par $1). Price—100%
common
share for stock. Proceeds—To repay bank
obligations, long-
advances, for payment of income tax
term notes and
payable,
equipment contracts, to reduce accounts
inventories, purchase equipment and
increase
Office
construction.
for
Underwriter
Mich.
—
Libaire, Stout & Co., New York.
Eisele & King,
California
Flint,
—
9
Modular
Homes,
Inc.
(letter of notification)
—
Inc., San Diego, Calif.
California Tuna Fleet,
Sept. 29 filed $4,000,000 of 6% sinking fund debentures
due 1966 and 160,000 shares of common stock (par five
cents) to be offered in units of a $500 debenture and 20
shares of stock.
Price—To be supplied by amendment.
Proceeds—For purchase
from National Marine Terminal,
17 tuna clippers, subject
Inc. of its undivided interest in
to
f
'•;)
certain liabilities; for
construction of four tuna clip-
and the balance for working capital and general
corporate purposes. Underwriter — Barrett Herrick &
pers;
Co., Inc., New York.
Canadian
Dec.
20
Petrofina, Ltd.
filed
1,751,428 shares of non-cumulative par¬
preferred stock (par $10—Canadian) to be
offered in exchange for shares of capital stock of Calvan
Consolidated Oil & Gas Co., Ltd. at the rate of six pre¬
ferred shares for each 17 Calvan shares.
The offer is
ticipating
not less than 51%
Underwriter—None.
contingent to acceptance
Carnotite
Oct. 26
of the
by
outstanding Calvan stock.
Development Corp.
16,000,000 shares of com¬
share). Proceeds
exploration and development expenses. Office—
317 Main St., Grand Junction, Colo. Underwriter—West¬
ern Securities Corp., Salt Lake City, Utah.
Price—At par (one cent per
—For
it Casa Piedra Mining Corp.,
l-ueblo, Colo.
Dec. 31 (letter of notification) 40,000 shares of class A
common
stock. Price—At par ($1 per share). Proceeds
—For mining expenses. Office—603 Santa Fe, Pueblo,
Colo.—Underwriter—None.
Century Controls Corp.
Dec. 17
(letter of notification) 100,000 shares of common
(par $1).
Price—$1.25 per share. Proceeds—For
working capital. Business — Accessory control systems
stock
and
components for aircraft interest, etc.
Office—Allen
• Cessna Aircraft Co., Wichita, Kansas
Jan. 3 (letter of notification) 3,000 shares of common
stock (par $1). Price—At market (estimated at about
$18 per share).
Proceeds — To a selling stockholder
Underwriter—Francis L duPont & Co., Wichita, Kansas.
Inc.
Nov. 29 (letter of notification) 299,000 shares of com¬
mon stock
(par five cents). Price—$1 per share. Pro¬
ceeds— For
machinery and equipment and working
capital. Name Change—Company was formerly known
as
Paley Manufacturing Corp.
Office—244 Herkimer
Street, Brooklyn, N. Y.
Underwriter—Allen E. Beers
selling stockholder.
Underwriter—Harris, Upham & Co.,
Wichita, Kansas.
Chesapeake
Dec.
7
filed
Co., Philadelphia, Pa.
&
Price—$1
and development
Colorado
per
share.
program.
Uranium
of
common
Corp.
stock
(2/15)
(par five
Proceeds—For exploration
Office — Washington, D. C.
Underwriter—Peter Morgan & Co., New York.
Chesapeake
Industries,
Colorado
15 filed 996,304 shares of common stock
(par $1)
33,818 shares of $4 cumulative preferred stock (par
$10) being offered in exchange for preferred and com¬
shares of Home & Foreign Securities Corp. and Oils
&
Industries, Inc., common shares of common stock of
Intercontinental Holdings, Ltd. and Intercoast Petroleum
Corp., Charlotte, N. C.
$100,000 of 20-year 6%
subordinate sinking fund notes and 100 ten-year war¬
rants to purchase 20 shares of common stock to be sold
in units of a $1,000 note and one warrant.
Price—$1,000
per unit (each warrant is exercisable at $10 per share.)
Proceeds
To repay
bank loan.
Office — 221% West
Trade St., Charlotte, N. C. Underwriter—J. C. Wheat
& Co., Richmond, Va.
25
(letter of notification)
April 7, 1954, filed $50,000,000 first and refunding mort¬
gage bonds, series K, due May 1, 1984. Proceeds—To be
applied towards cost of redeeming $27,982,000 New York
Steam Corp. first mortgage bonds and $25,000,000 West¬
chester Lighting Co. general mortgage bonds.
Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; Morgan Stanley
& Co.; The First Boston Corp. Offering—Originally set
for May 11, but has been postponed because of market
conditions.
development
expenses.
Bldg., Denver, Colo. Underwriter
Corp., Oklahoma City, Okla.
Consumers Power Co.
(1/25)
than a 3Y4% basis. Proceeds—For
expansion and improvement program. Underwriter—To
be determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co., Union Se¬
curities Corp. and A. C. Allyn & Co. Inc. (jointly);
White, Weld & Co. and Shields & Co. (jointly); Morgan
Stanley & Co.; Harriman Ripley & Co. Inc. and The First
Corp. (jointly). Bids — To be received up to
11 a.m.
(EST) on Jan. 25 at office of Commonwealth
Boston
Services
Inc., 20 Pine St., New York, N. Y.
Contact
Uranium, Mines, Inc., N. Y.
of notification) 500,000 shares of com¬
mon
stock
(par one cent). Price—10 cents per share.
Proceeds—For mining expenses. Office—100 West 42nd
St., New York. Underwriter—Justin Steppler, Inc., New
Dec.
7
(letter
York.
Continental Loan Co., Dallas, Tex.
Dec.
22
(letter of notification)
$150,000 of 4% 10-year
42,000 shares of common stock (par 10
cents) to be offered in units of $1,000 of debentures and
debentures
200
three
not
less
than
80%
companies mentioned
of
the
stock
above/ The
Chesapeake & Potomac Telephone Co. of
Baltimore City (2/1)
Jan. 11 filed $25,000,000 of 40-year debentures Feb.
Proceeds—To redeem $15,000,000 of 3V2%
per
tures due 1984 at 104.52% and accrued interest
on
deben¬
March
advances from American Telephone &
Co. and general corporate purposes. Under¬
repay
writer—To be determined by competitive
bidding. Prob¬
able bidders: Halsey, Stuart & Co.
Inc.; The First Bos¬
ton
Corp.; Harriman Ripley & Co. Inc.; Kuhn, Loeb &
Co.; Morgan Stanley & Co.; White, Weld & Co. BidsExpected to be received
on
Feb.
Chillicothe Telephone Co.
Dec. 13 (letter of
notification)
(no par)
1.
4,775 shares of common
to be offered for subscription by stock¬
of stock:
remaining 12,000 shares to be
by underwriter.
share.
common
Proceeds—To
of Budget and Mutual
815
Price—$1,400
per
buy
pur¬
unit; and
common
stock
and for working oapi^l
Fidelity Union Life Bldg., Dallas, T^x.
$2
—
—Securities Management Corp., same address.
exploration and development expenses, twice—
Bldg., Salt Lake City, Utah. Underwriter-
Atlas
524
& Co., same city.
Blerkom
Van
Devil Canyon
Uranium Corp., Moab,
mon
Co., Chicago, III.
2,000 shares of common
stock (par $5). Price—At market (estimated at
$34 per
share). Proceeds—To selling stockholder.
Office—2700
Southport Ave., Chicago 14, 111. Underwriter — Glore,
Forgan & Co., Chicago, 111.
Colo.
ver,
'
/
Duke Power Co.
stock (no par), be¬
by common stockholders of
basis of one new share for
oversubscription privilege);
rights to expire Jan. 28. Price—$40 per share. Proceeds
—To repay bank loans and for new construction.
Un¬
Dec. 3 filed
218,737 shares of common
ing offered for subscription
record Jan. 12, 1955 on the
each 20 shares held (with an
derwriter—None.
Duquesne Light Co. (1/20)
160,000 shares of preferred
stock (par $50).
Dec. 21 filed
bank loans and for new construc¬
Underwriter — To be determined by competitive
Proceeds—To
tion.
repay
bidders/The First Boston Corp.; Leh¬
bidding. Probable
Kuhn, Loeb & Co. and
Brothers; Blyth & Co., Inc.;
man
Smith, Barney & Co. (jointly); Kidder, Peabody & Co.,
Merrill Lynch, Pierce, Fenner & Beane and White, Weld
& Co. (jointly). Bids—To be received up to 11 a.m. (ES)
on Jan.' 20, 1955 at 15 Broad St., New York, N. Y.
East Tennessee
Water Corp.
$160,000 of first mortgage
Price — At par (in de¬
nominations of $1,000 each). Proceeds—For purchase oi
real estate, capital improvements and contingencies. Of¬
fice—306 E. Main St., Johnson City, Tenn. Underwriter
(letter of notification)
Dec. 20
1, 1954.
bonds dated Dec.
6%
—D. T. McKee Investment
Co., Box 904, Bristol, Va.
Price—$100
account
on
150 shares of capital stock.
share. Proceeds—To finance the trading
the Chicago Board of Trade, through J. A
per
Hogle & Co., brokers, Salt Lake City, Utah. Underwritei
—None
(but offering will be handled by Stanley F
Nev.
sinking fund debenture
bonds due July 1, 1967, and 1,950,000 shares of commor:
stock (par 10 cents), each purchaser of bonds to have
the right to purchase common stock at par at rate of
10 shares for each $100 of bonds up to $9,900 of deben¬
ture bonds purchased, with amount of shares increasing
in proportion to amount of
bonds purchased. Price—
100% of principal amount for bonds. Proceeds—To paj
balance
of
purchase price of Las Vegas Hotel, Inc
capital
stock,
construction
of main hotel
building
pavilions, swimming pool, furnishings, etc. Underwritei
—Company may sell debenture bonds and common stock
to dealers through brokers.
Morocco
El
filed
29
Dec.
Enterprises,
Inc., Las Vegas,
of 8%
$6,000,000
+ Electronic Specialty Co., Los Angeles, Calif.
(letter of notification) 100,000 shares of capita',
stock" (par 50 cents). Price—$3 per share. ProceedsFor working capital.
Office—3456 Glendale Blvd^ Lo:
Angeles, Calif. Underwriter — D. A. Lomasney & Co.
Jan..10
New York.
Electronics Co. of
6
filed
par
($1
per
ine
and
Jan.
300,000
Ireland
share). Proceeds—For machinery and buildcapital. Office — 407 Liberty Trus,
working
Bldg^ Philadelphia, Pa.
14 filed
Pricei-$5
per
Underwriter—None.
Calif.
(par $1)
Proceeds—For investment..
Investment Corp., San Diego,
Electronics
2,000,000 shares of capital stock
share.
Eula Belle Uranium, Inc.
Oct/ 18
mon
(letter of notification) 5,000,000 shares of com¬
(par one cent).
Price—Five cents per share
stock
exploration
Proceeds—For
Office—506
First
and
development
•
stock.
Price—At par ($1 per share). Proceeds
land, construction of plant, tools and equipment
working capital. Address—P. O. Box 3009, Tampa,
—For
Underwriter—None.
★ Coverboard Corp., Washington, D. C.
Jan. 6
(letter of notification) 236 shares of common
stock. Price
At par ($100 per share).
Office—Room
604, 1757 K St., N.W., Washington 6, D. C. Underwriter
—None.
Cuba
7
(Republic of)
filed
4%
amendment.
$2,500,000
bonds
due
of
Veterans, Courts and Public
1983.
Proceeds —To
struction
Co.,
for
Price—To
be
Romenpower
supplied
Electra
by
Con¬
preformed
work
of its agencies.
which
received
the
bonds
in
payment
for the Republic or one of more
Underwriters—To be named by amend¬
ment.
filed
same
city.
Inc., New Yorl
Exhibitors Film Financial Group,
Dec.' 10
expenses
Salt Lake City
Seeuritv Bank Bldg..
Utah./ Underwriter—Utah Securities Co..
Sky-Rides, Inc.
(letter of notification) 54,000 shares of class A
Price—A'
shares of capital stock.
★ Courtney-Adams
Works
^
100
(letter of notification)
Jan. 10
Jan.
Jan.
com¬
share.
exploration and development costs. Of¬
fice—21 Main St., Petersen Bldg., Maob, Utah.
Under¬
writer— Melvin F. Schroeder, 501 Kittredge Bldg., Den¬
Proceeds—For
(letter of notification)
12
Utah
(letter of notification) 3,000,000 shares of
stock (par one cent).
Price—10 cents per
8
Nov.
Dec.
Electric
31
City,, Utah
(letter of notification) 2,000,000 shares of com¬
stock Price—At par (15 cents per share). Proceeds
18
—For
Underwriter
—
1,
Uranium Co., Salt Lake
Desert
Oct
and
shares
(jointly);
Blyth & Co., Inc. and Merrill,
Lynch, Pierce, Fenner & Beane (jointly); Equitable Se¬
curities Corp.; Kuhn, Loeb & Co. Bids—Expected to
be received up to 11 a.m. (EST) on Feb. 14.
Haight, The Garden, Fernley, Nev.
able to the company
Fla.
stock
and
and Wertheim & Co.
Kidder, Peabody & Co.,
Pool No.
Pro¬
Dec. 28 filed $30,000,000 of first mortgage bonds to ma¬
ture Feb. 1, 1990. Price—Expected to be not less favor¬
offer
and
Hutzler; The First
Union Securities Corp.
com¬
Office—206 Mercantile
and
Telegraph
exploration
—Petroleum Finance
of
Colonial
will expire on Jan. 27.
,
For
—
Probable
& Co. Inc.; Salomon Bros &
Boston Corp.; Lehman Brothers;
it Eastern Idaho Grain Trading Association's
Uranium
Corp., Denver, Colo.
Oct. 11 (letter of notification) 1,000,000 shares of
mon
stock.
Price—At par (one cent per share).
of
1955; to
date set.
new
Constellation
common
7,
No
20, 1955
Stuart
Halsey,
—
Consol. Edison Co. of Now York, Inc.
Thursday, January
.
competitive bidding.
by
determined
be
bidders:
•
Consolidated Credit
Oct.
Corp. and capital stock of Colonial Trust Co. The offer
is subject to deposit of not less than 90% of the stock
1995.
Co.
Denver 2, Colo. Underwriter—John L. Donahue, 430 16th
St., Denver, Colo.
Cook
Oct.
first
Uranium
Plateau
(letter of notification) 1,900,000 shares of common
Dec. 1
—To
mon
Corp.
Dec. 20 filed $2,500,000 of 6% junior subordinated sink¬
ing fund debentures, series B, due Dec. 1, 1968, of which
$1,529,550 principal amount will be offered in exchange
for $1,390,500 of debentures due 1958 on the basis of
$550 of new debentures for each $500 of debentures held.
Price—At par. Proceeds—To retire junior subordinated
sinking fund debentures which mature Dec. 1, 1958.
Underwriters—Straus, Blosser & McDowell and Fairman, Harris & Co., Inc., both of Chicago, 111.
Dec.
Inc.
and
the
'
Colonial Acceptance
chased
750,000 shares
cents).
mon
Industries,
Aircraft
Co., Wichita, Kansas
Dec. 31 (letter of notification) 4,200 shares of common
stock (par $1).
Price—At market (estimated at $18 per
share). Proceeds—To Dwane L. Wallace, President, the
.
Air
Circle
Boulevard, Farmingdale, L. I., N. Y. Underwriter—None.
Cessna
Proceeds—For property
St., Chillicothe, Ohio.
East Maine
Underwriter—None.
ceeds
(letter of notification)
stock.
mon
share.
per
Office—58
stock (par one cent). Price—15 cents per share. Proceeds
—For mining activities.
Office — 824 Equitable Bldg.,
196,000 shares of common
stock. Price—At par ($1 per share). Proceeds—For ad¬
ditions to plant and equipment and working capital.
Office
3808 22nd St., East Del Paso Heights, Calif.
Underwriter—United Capital Co., Reno, Nev.
Dec.
Price—$50
additions.
..
Price—A
100,000 shares of capital stock.
share). Proceeds—For general corporat*
purposes. Underwriter—None. Samuel Pinanski, of Bos¬
ton/Mass., President of American Theatric Corn., will b«
par;:($100
per
President of Exhibitors. Statement effective Jan.
Farm
Nov.
29
10.
& Home Loan & Discount Co.
filed
320,000
shares
of class
A
common
stocl
(par 25 cents), 214,285 shares of class B common stocl
(paf 35 cents) and 300,000 shares of class C Commoi
stociCXpar 50 cents). Price — At par. Proceeds — Fo:
working
capital. Office—Phoenix,
None.
,
Ariz.
Underwriter—
.
Financial Credit Corp., New York
Jan.
29
filed
250,000
shares
of 7%
cumulative sinkini
fund
preferred stock. Price—At par ($2 per share). Pra
working capital. Underwriter—E. J. Foun
tain & Co., Inc., New York.
feeds—For
ic Dallas Power & Light Co. (2/14)
14 filed $7,000,000 of sinking fund debentures due
Jan. 10
1980.
stock.
Jan.
Proceeds—For
construction
program.
Underwriter
it Fleetwood-Airflow, Inc., Wilkes-Barre, Pa.
(letter of notification) 360,360 shares of commoi
Price—At
par
(50 cents
per
share). Proceeds-
i
olumc 181
rpose
Number 5396
not
*
.
The Commercial and Fi
,
ial Chronicle
Office—421 N. Pennsylvania
Ave.,
Pa. Underwriter—-None.;
•
Four States Uranium
Corp., Grand Junction, Colo.
ug. 16 (letter of
notification) 300,000 shares of comon stock.
Price—At par ($1 per
share). Proceeds—For
tentatively been expected to be received up to 11 a.m.
(EDT) on June 15 at The Hanover Bank, 70 Broadway,
York, N. Y., but offering has been postponed.
„
ploratory
New
Gunsite
and development
expenses.
Office
618
Avenue, Grand Junction, Colo. Underwriter
Rosenthal, 1669 Broadway, Denver, Colo.
—
—
Broadway, Salt Lake City, Utah.
—Melvin G. Flegal & Co., same address.
Proceeds
stock,
par
($1 per share). Proceeds—For
exploradevelopment costs. Office
100 Adelaide St.
est, Toronto, Canada.
Underwriter—McCoy & Willard,
ston, Mass.
Judge Bldg., Salt Lake
—
ty, Utah.
Underwriter—Utah Uranium Brokers,
y
General
31
c
Engineering
stock
ds—For
mining
i
Ave.,
Manufacturing Corp.
15
a
maximum of 50 shares
(no par;. Price—$2U0
Wis.
Homes, Inc.
snare.
per
Office—704
expenses.
Milwaukee,
General
c.
&
(letter of notification)
common
same
West
Underwriter—None.
(1/28)
inventory and working capital.
Office—
ntington Station, L. I., N. Y.
Underwriter—S. D. Ful& Co., New York.
General Telephone Co. of
Califonra
10
filed
Feb.
nt.
$12,000,000
1,
1985.
of first
bonds, series
Price—To be supplied by amend-
Proceeds—To discharge bank loans and
Jor propand improvements.
Underwriter—To be
additions
y
termined
by competitive
Stuart & Co. Inc.;
lsey,
rtis
and
Stone &
Loeb & Co.
hn,
mtly):
White.
(jointly).
.
(2/8)
mortgage
General
.12
bidding.
Probable
bidders:
Paine, Wobber Jackson &
Webster Securities
Corp. finintlv);
and
Weld
Salomon
&
Co.
Bids—Expected
Telephone Co.
and
Bros.
&
of
the
Northwest
(2/2)
Webster
urities
Corp., both of New York; and Pacific North¬
s' Co., Seattle, Wash.
General
Uranium Corp., Salt Lake
City, Utah
t. 27 (letter of
notification) 1,200,000 shares of comn
stock.
Price—At par (25 cents
per share).
Pro—For
development and exploration expenses. OfBuilding, Salt Lake City. Utah. Underiter—P. G. Christopulos &
Co., same city.
—404 Boston
18
147,500 shares of
30,000 shares are to
posed
largely
of
common
be
stockholders
public.
Price—$10
Drovements
ald &
and
per
share.
working
stock
offered
of
Co, is parent), and 117,500 shares
n
(par $5),
to
a
company
are
to
be offered
Proceeds—For
capital.
group
(Globe
capital
Underwriter—Mc-
Co., Cleveland, Ohio.
rand
Deposit Mining Co., Salt Lake
City, Utah
(letter of notification) 1,210,018 shares of comstock (par five
cents) to be offered to stockholders
14
.
n
record
Jan.
14
on
a
l-for-2
basis.
Price—To
stock-
ders,
0V4 cents per share; to public, six cents
per
Proceeds—To explore, develop and maintain
the
Deposit Mine. Office—409 Ness
Bldg., Salt Lake
re.
nd
Uath.
y,
30
Corp. (2/1)
(letter of notification) 2,000,000 shares of
stock
(par
corn-
one
Utilities Co.
160,000 shares of preferred stock (par
$100).
ceeds
To redeem 50,000 shares of
$4.50 dividend
ferred stock, 60,000 shares of $4.40
dividend preferred
k, 1949 series, and 50,000 shares of $4.44 dividend
—
erred
stock
; $105, and
determined
at the prevailing
redemption prices of
$105.75, respectively.
Underwriter—To
by oomDetitive bidding. Probable bid-
;
Stone
&
Webster
Securities
Corp.;
Lehman
thers and Equitable Securities
Corp. (jointly); Kuhn,
b & Co.; Glore, Forgan & Co. and
W. C.
(jointly).
up
Langley &
Bids—Had tentatively been expected to be
to 11:30 a.m. (EDT) on June 15 at The
Bank, 70 Broadway, New York, N. Y., but ofhas been postponed.
over
ng
ulf States
Utilities Co.
'
14
e
filed
$24,000,000 of first mortgage bonds due
1, 1984. Proceeds—To redeem
$10,000,000 of 3%%
mortgage bonds due 1981 and $10,000,000 of 3%%
mortgage bonds due 1983, and for general
corpopurposes.
Underwriter—To be determined
by com-
tive
bidding.
Probable
bidders: Halsey, Stuart &
Merrill Lynch, Pierce, Fen& Beane and White, Weld & Co.
(jointly); SaloBros. & Hutzler and Union Securities
Corp.; Kuhn,
b & Co. and A. C. Allyn &
Co., Inc. (jointly); Lee
inson
Corp. and Carl M. Loeb, Rhoades & Co.
tly); Stone & Webster Securities Corp. Bids—Had
Inc.: Lehman Brothers:
of
Hotels
Statler
.
Imperial
Nov.
Minerals, Ltd. (Canada)
(1/24)
(Regulation "D") 830,000 shares of common
23
(par $1). Price—36 cents per share. Proceeds—
mining activities. Underwriter—Milton D. Blauner
Co., Inc., New York.
&
Spa, Inc., Reno, Nev.
23 filed 12,000 shares of common stock
(no par).
Price—$500 per share.
Proceeds—For land, construc¬
tion, working capital, etc. Underwriter—None.
Investment Corp. of America
Aug. 30 (letter of notification) 3,799 shares of cumula¬
tive preferred stodk (no
par) and
stock (no par). Price—For
mon
3,799 shares of
preferred, $20
com¬
share;
$2 per share. Proceeds—For working
capital. Office—3603^ Broadway, San
Antonio, Tex. Un¬
derwriter—Interior Securities, Inc., San
Antonio, Tex.
and for common,
Investors
per
Group Canadian Fund Ltd., Winnipeg,
Canada
common stock (par $1).
by amendment.
Proceeds—For
investment principally in stocks of Canadian
industries.
supplied
Organized—In
as
1954 by Investors Diversified
special type of mutual investment
Underwriter—None.
company.
Lucky
Proceeds
For oil and mining expenses.
Office—318
Phillips Petroleum Bldg., Salt Lake City, Utah. Under¬
—
writer—Hunter Securities
Corp., New York.
(jointly);
Kuhn, Loeb & Co., Salomon Bros. & Hutzler and Union
Securities Corp. (jointly);
Glore, Forgan & Co.; Blyth
& Co., Inc. and The First Boston
Corp. (jointly); White,
Weld & Co. and Shields & Co.
(jointly); Harriman Rip¬
ley & Co., Inc.; Equitable Securities Corp. Bids—Ex¬
pected to
be received
on
Feb.
15, 1955.
★ Keystone Wholesale Hardware
Co., Atlanta, Ga.
(letter of notification) 16,666 shares of common
par). Price — Approximately $3 per share.
Office—517 Stephens St., S.W.,
Atlanta, Ga. Underwriter
Jan.
13
stock
(no
—None.
2 filed
660.000
shares
of
common
Canadian),- of which 500,000 shares
behalf of
of
the
and
company
Proceeds
shares
per
(par $1,
to be offered in
are
160.000
Percy E. Rivett. Price—40 cents
stock
for
account
share, U. S. funds.
For development and exploration
expenses.
Underwriter—To be named by amendment.
—
Pro¬
par.
ceeds—To
reduce
Office—305
Minn.
bank
loans
Northwestern
and
for
working capital.
Bldg., Minneapolis,
Federal
Underwriter—Daniels & Smith.
(par
one
cent).
Price—Three
cents
per
share.
Proceeds—For
mining operations.
Office—402 Darling
Bldg., Salt Lake City, Utah.
Underwriter — Uranium
Mart, Inc., 146 S. Main St., Salt Lake City, Utah.
•
Life
Dec.
Insurance
17 field
Investors,
Inc.,
1,400,000 shares of
N. Y.
(1/27)
stock
(par $1).
supplied by amendment. Proceeds—Over
$20,000,000 for investment. Business—A diversified man¬
agement investment company.
Underwriters — White,
Price—To
common
be
Weld & Co., New
Nashville, Tenn.
York,
and
J.
C.
Bradford
&
Co.,
ic Lone Star Mining & Development Co.
7 (letter of notification) preorganization
subscrip¬
certificates for 50,000 shares of common stock, of
which 5,000 shares are to be offered for the assets and
capital stock of a partnership and 500 shares for legal
tion
mining
Tex.
Price—At
expenses.
par
($1
per
share).
Proceeds—For
Office—Port Neches, Jefferson County,
Underwriter—None.
share.
Pro¬
Utah Securities Co., same city.
Magic Metals Uranium Corp.
Sept. 14 (letter of notification) 2,995,000 shares of com¬
mon stock
(par one cent). Price — 10 cents per share
Proceeds—For exploration and development expenses
Office—65 East 4th South, Salt Lake
City, Utah. Under¬
writer—Mid-Coninent Securities, Inc., the same city.
Magic Uranium Co., Inc., Salt Lake City, Utah
15 (letter of notification) 3,000,000 shares of com
Oct.
stock (par one cent).
Price—10 cents per shart
Proceeds—For development and exploration costs. Of
fice—529 Newhouse Bldg., Salt Lake
City, Utah. Un
derwriter—I. J. Schenin Co., New York.
mon
Marine Midland Corp., Buffalo, N. Y. 9 filed 403,082 shares of 4% cumulative preferred*
stock being offered for subscription
by common stock¬
holders of record Jan. 5, 1955, on the basis of one pre¬
Dec.
ferred
share for
each
18
shares
of
common
held
stock
Rights will expire on Jan. 24. Price—At par ($50 pei
share). Proceeds—For investment in additional capital
of
subsidiary bank, to repay bank loans and foi
other corporate purposes.
Underwriters—The First Bos¬
ton
Corp.; Union Securities Corp.; Schoellkopf, Huttori
Pomeroy, Inc.; and Granbery, Marache & Co.
&
Merritt-Chapman & Scott Corp.
Dec.
21 filed 3,018,567
shares of common stock (pai
$12.50) to be offered in exchange for outstanding stocl
of New York
Shipbuilding Corp., Devoe & Raynold.1
Co., Inc., Newport Steel Corp., Marion Power Shovel
Co., Osgood Co. and Tennessee Products & Chemical
Corp. on the following basis: 675,549 shares to holders
of the
540,439 outstanding shares of
of
Tennessee
of
IV4
Products
shares
for
&
each
common
Chemical
share
of
stock
Corp.,
common
at
(pai
the
stock
ol
Tennessee; 755,105 shares to holders of the 453,063 out¬
standing shares of class A stock (par $2) of Devoe &
Raynolds Co., Inc. at the rate of 1% shares for each
share of class A stock of Devoe;
242,700 shares to holders
the 182,025 outstanding shares of class B common
stock (par $1) of Devoe, at the rate of
of
1%
each of class B
common
shares for
stock of
Devoe; 1,290,252 shares
to holders of the 1,290,252
outstanding shares of common
stock (par $1) of New York
Shipbuilding Corp., at the
rate of
share for each share of
one
common
stock of N. Y.
Shipbuilding; 27,907 shares to holders of the 58,605 out¬
standing shares of common stock (par $1) of Newport Steel
Corp., not owned by Merritt, at the rate of one share
for each 2.1
shares
to
shares of
holders
stock
owned
share
each
stock of Newport; 26,114
17,409 outstanding shares of
of Marion Power Shovel Co.,
common
the
(par $10)
by
of
of
Merritt,
common
at
the
stock
rate
of
IV2
shares
for
of
Marion; and 940 shares
to holders of the 1,410
outstanding shares of class B
common
stock (without par value) of the
Osgood Co.,
not owned by Merritt or
Marion, at the rate of one share
for each
IV2 shares of class B
common
stock of
Osgood.
Mi-Ame Canned
stock.
chase
Beverages Co., Hialeah, Fla.
(letter of notification) 200,000 shares of common
Price—At par ($1 per share).
raw
materials and
ing capital.
Miami, Fla.
•
new
Underwriter
—
Proceeds—To pur¬
machinery, and for work¬
Frank
D.
Newman
&
Co.,
Mid-Continent
Uranium Corp.
(1/24-28)
1,562,500 shares of common stock (par one
cent).
Price—40 cents per share.
Proceeds—For ex¬
ploratory operations, machinery and equipment, and for
working capital and unforeseen contingencies. Under¬
.
writer—General
Investing Corp., New York.
.
Military Investors Financial Corp.
Dec. 1 (letter of notification) 150,000 shares of common
stock (par 25 cents).
Price—$2 per share. Proceeds—
For general
corporate purposes.
Houston, Texas.
city.
it Minerals
Office—2310 Main St.,
Underwriter—Cobb & Co., Inc., same
Chemicals Corp. of America (2/15)
435,934 shares of common stock (par $1),
125,000 shares are to be sold by the company
and 310,934 shares by certain
selling stockholders in¬
cluding Lazard Freres & Co. and F. Eberstadt & Co. Inc.
Jan.
of
Jan.
services.
Corp.
Nov. 26 filed
Liberty Uranium Corp., Salt Lake City, Utah
July 1 (letter of notification) 3,000,000 shares of common
stock
Uranium
stock (par one cent). Price—Three cents
per share
Proceeds—For exploration and development costs. Office
—239 Ness Bldg., Salt Lake
City, Utah. Underwriter—
Oct. 28
Co., Minneapolis, Minn.
Nov. 3 (letter of notification)
13,000 shares of preferred
stock (par $10) and $170,000 of 8% subordinate notes
due five years from date of issue. Price—At
Strike
mon
not
Mines, Ltd., Toronto, Can.
Proceeds—Fi
Office—32
mining operations.
Ida.
Underwriter—Ernest
Lero
.Mac Fos Uranium, Inc., Salt Lake City, Utah
Sept. 16 (letter of notification) 4,000,000 shares of com¬
common
Lake Lauzon
commo
share).
per
per
rate
due
Proceeds—To repay bank loans and for new con¬
struction. Underwriters—To be determined
by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Lehman Brothers and Bear, Stearns & Co.
($1
mining operations. Office—38 South Mail.
St., Salt Lake City, Utah. Underwriter—Seaboard Se¬
curities Corp., Washington, D. C.
$5)
* Kansas City Power & Light Co. (2/15)
Jan. 19 filed $16 000,000 of first
mortgage bonds
to
ceeds—For
a
Justheim Petroleum Co., Salt Lake
City, Utah
Dec. 9 (letter of
notification) 2,650,000 shares of com¬
mon stock
(par five cents). Price—10 cents per share.
par
incident
fo
Stree.
Jan. 4 (letter of notification)
4,300,000 shares of common
stock (par one cent). Price—Five cents
November
Services, Inc.,
Ninth
re
Yates
Bldg., Boise,
Bevis, 1414 Arthur St., Caldwell, Ida.
stock
3,000,000 shares of
be
Price—At
expenses
International
Nov.
Lee Finance
States
14 filed
ived
•
Aug.
cent). Price—15 cents per share,
ceeds—For mining activities. Office—618
Rood Ave.,
nd Junction, Colo.
Underwriter—Tellier & Co., JerCity, N. J.
ulf
stock
None.
Underwriter—None.
~reen Mountain Uranium
:
common
the basis of $10 principal amount of con¬
vertible debentures and $40
principal amount of nonconvertible debentures for each common
share
held.
Price—At 100% of principal amount. Proceeds—To
pre¬
pay bank loan and for working capital.
Underwriter—
on
1985.
Metallurgical Corp., Beverly, Ohio
filed
former holders of
Co., Inc.
Price—To
&
.
and
Office—203 West
Underwriter—None.
property.
Lucky-Custer Mining Corp.
7 (letter of notification) 50,967 shares of
stock.
filed
Dec. 13 filed
144,000 shares of 4.80% cumulative
prered stock (par
$25). Price—To be supplied by amendnt. Proceeds—To
repay bank loans. Underwriters—
ine, Webber, Jackson & Curtis and Stone
which
23
to
Lorain, Ohio.
,
Hotels
Corp., Chicago, III.
$7,978,900 of 15-year convertible deben¬
tures, due Jan. 1, 1970, and $31,915,600 of 15-year deben¬
tures due Jan.
1, 1970, to be offered to certain holders
Kidder, Peabody &
filed
Globe
Hilton
Dec.
Hutzler
about Feb. 8.
imburse
Hotel
For
filed
uipment,
due
Henning
stock
300,000 shares of common stock (par
$1).
ice—$5 per share.
Proceeds—For plant expansion, new
n.
Inc.,
Bldg., Casper, Wyo.
Pro¬
Wiscon-
Co.,
—
—
Price—$20 per share.
Proceeds—To
treasury for expenditures already made
additions
Office—208 Turner-Cottman Bldg., Casper, Wyo. Under¬
writer
Casper Brokerage
and
Gem Uranium & Oil
Co., Salt Lake City, Utah
c. 9 (letter of
notification) 11,000,000 shares of capital
ck (par one
cent). Price—Two cents per share. Proeds—For exploration and
development of oil and uraum
properties. Office
414
stockholders.
Dec.
For exploration and development expenses.
—
Lorain Telephone Co., Lorain, Ohio
Sept. 7 (letter of notification) 2,500 shares of commoi
stock (no par) to be first offered for
subscription b:
Underwriter
Highland Uranium, Inc., Casper, Wyo.
Dec. 13 (letter of notification) 6,000,000 shares of com¬
mon stock (par two
cents). Price—Five cents per share.
~ne.
ice—At
Uranium
36 West
Franklin Mining
Corp. (Ind.)
in.
10 (letter of
notification) 700 shares of common
ock (no
par). Price—$200 per share. Underwriter—
Gatineau Uranium Mines
Ltd. (Canada)
g. 10 (Regulation "D")
300,000 shares of common
Butte
Corp.
Oct. 25 (letter of notification) 25,000,000 shares of
capi¬
tal stock. Price—At par (one cent per share). Proceeds
—For exploration and development expenses. Office—
od
n
12:.
stated.
llkes-Barre,
e
(379)
14
&
filed
which
Price—To be supplied by amendment.
Proceeds—For
acquisition of properties and for capital requirements in
connection with kaolin catalyst program, and
eral corporate purposes.
New York.
other gen¬
Underwrter—Lehman Brothers,
Continued
on
page
124
£
,:<
The Commercial and Financial Chronicle
(380)
124
and
Minneapolis Gas Co.
'
tn
30 filed 184,523 shares of common stock (par $1)
be offered for subscription by common stockholders
.
,
Dee
to
of
rate
at
one
be
Price—To
share for each eight shares held.
supplied by amendment. Proceeds—For
new
additions to property.
Underwriter—Kalman & Co., Inc.,
Paul, Minn.
St.
stock (par $2.50),
be for account of com¬
114,000 shares are to
which
and 6,336 shares for account of selling stockholder.
by amendment (expected around
pany,
(U. S.)
Streit; all of Toronto, Canada.
Northeastern
Dec.
Steel
due
Feb.
1,
consisting
of
stock
and
common
$8 per share). Proceeds—To repay bank loans and for
construction program. Underwriter—Straus, Blosser &
of
common
or
debenture, 10 shares of
warrant to purchase three shares
$8,331/3 per share payable in cash
debentures at par.
Chicago,
111.
(1
Co.
Utilities
Missouri
•
24)
27,420 shares of common stock (par $1)
be offered for subscription by common stockholders
Dec. 20 filed
to
of
10
share for each
(with an oversubscription privilege), for a
12-day standby. Price—To be supplied by amendment.
Proceeds—For construction program. Dealer-Manager—
Edward D. Jones & Co., St. Louis, Mo.
record
at
12
Jan.
shares
rate
of
held
new
one
Uranium & Oil Corp., Denver, Colo.
Jan. 11 (letter of notification) 5.000,000 shares of com¬
mon
sotck (par one cent). Price—Five cents per share.
Proceeds—For mining and oil activities. Office— Denham
Bldg., Denver, Colo. Underwriter—None.
if Mizpah
if Monarch Lumber Co., Minneapolis, Minn.
7 (letter of notification) $23,000 of 6% debentures
to be offered to yard managers and key employees as
Jan.
*
1975;
registered
$50
a
Price—To be supplied
McDowell,
provided by profit sharing contracts. Price — At par.
Proceeds—For working capital.
Office—900 First National-Soo Line Bldg., Minneapolis, Minn. Underwriter
—None.
Uranium Corp., Moab, Utah
St., Reno, Nev.
Inc., Denver,
Uranium,
Montezuma
stock
Montreal
(City of), Canada (1/26)
Dec. 30 filed $35,000,000 of 1955 U. S. currency issue
debentures due serially Jan. 1, 1956-1974.
Proceeds—
for
pay
improvements, etc. Un¬
Shields & Co.,
construction,
new
derwriter—To be named by amendment.
Halsey, Stuart & Co. Inc. and Savard &
Hart
won
last
issue at
competitive sale. Other groups who bid were:
Kuhn, Loeb & Co., Glore, Forgan & Co. and Salomon
Bros. & Hutzler (jointly); White, Weld & Co., Union Se¬
curities Corp. and Blyth & Co., Inc.; Lehman Brothers.
Bids—Expected Jan. 26.
Nash Finch
Dec.
Co., Minneapolis, Minn.
(letter of notification) 1,000 shares
6
of common
stock. Price—At maximum of $18.50 per share. Proceeds
—To Willis King Nash, the selling stockholder. Under¬
writer—J. M. Dain & Co., Minneapolis, Minn.
National
Dec.
if Olympic
Jan.
13
stock
Proceeds—
unit.
per
be offered
one
notes
for
subscription
by stockholders
at
Price—
retire short-term
Proceeds—To
working capital. Office — 30 Commerce
Conn. Underwriter—None.
Stamford,
Onego
share).
per
and
for
share for each six shares held.
new
($1
par
St.,
Co., Stamford, Conn.
29,698 shares of common
Development
(letter of notification)
ot
rate of
At
Corp.,
Uniontown,
Pa.
Dec. 8 filed 150,000 shares of capital stock
(par $1).
Price—$3.50 per share. Proceeds—To repay bank loans
indebtedness to company
and
purchase
officials; to
balance of
pay
price
of New Mexico property; to purchase
wells; and for working capital. Under¬
Langley-Howard, Inc., Pittsburgh, Pa., on a
equipment and
writer
—
"best-efforts"
basis.
12
stock
(par 30
Price—$1
cents).
per
ceeds—For
working capital. Office—415
Me.
Underwriter — Sheehan &
Portland,
Co.,
Boston,
Moab, Utah
(letter of notification) 6,000,000 shares of capital
stock. Price—At par (five cents per share). Proceeds—
For mining expenses. Office—325 Main St., Moab, Utah.
Can Co.
Underwriter—Van Blerkom & Co., Salt Lake
City, Utah.
Pay Day Uranium Co., Las Vegas, Nev.
15 (letter of notification) 2,500,000 shares of capital
Oct.
stock
(par two cents). Price—10 cents per share. Pro¬
ceeds—For exploration and development costs. Office—
Underwriter—Allied
St., Las Vegas, Nev.
Underwriter Co., the same city.
filed
2
shares
858
65,455 shares of
of
stock (no par);
preferred stock (par
common
cumulative
4.40%
$100); 5,378 shares of 3.35% cumulative preferred stock
(par $100); and 4,032 shares of 41/2 % cumulative pre¬
ferred stock (par $100) being offered in exchange for
securities of The Scranton Electric Co. on the following
basis: (a) one share of Pennsylvania common stock for
each
shares
two
Scranton
of
stock; (b) one
share of Pennsylvania 4.40% series preferred stock for
each
share
of
Scranton
4.40%
cumulative preferred
stock; and (c) one share of Pennsylvania 3.35% series
preferred stock for each share of Scranton 3.35% cumu¬
common
Rainier
debt, and for working capital. Underwriter—Wm.
Harper & Son & Co., Seattle, Wash.
gage
P.
if Ranger Lake Uranium
stockholders of record Jan.
common
$100
?
of
debentures
subordinate
for
23
each
11
on
common
the
basis
of
shares
held;
rights to expire on Jan. 26. The remaining $119,600 of
debentures were publicly offered.
Price—At 100% of
principal amount. Proceeds—Together with other funds,
to
acquire stock of Pacific Can Co., to
of
ness
pay
off indebted¬
for
and
working capital.
Co. and A. C. Allyn &
Underwriters—Bear
Co. Inc., both of New
York.
Britain
Gas
Light Co.
Dec. 15 (letter of notification) 8,572 shares of common
stock (par $25) being offered for
subscription by stock¬
holders of
record
each
shares held; rights to expire Jan. 25. Price—
Proceeds—To repay bank loans. Office—
seven
per
Jan.
3
at
rate
of
one
new
share
for
St., New Britain, Conn.
• New Pacific Coal & Oils,
Underwriter—None.
Ltd., Toronto,
Canada
Dec.. 28 (regulation "D") 275,000 shares of common stock
(no par), of which 120,000 shares are to be offered in
Canada and 155,000 shares in the United States. Price—
55 cents per share. Proceeds — To selling stockholders.
Underwriter—L. D. Friedman & Co., New York.
New Silver
Belle
(par two cents).
Price—10 cents per share. Pro¬
exploration and development costs. Under¬
writers—Percy Dale Lanphere and R. E. Nelson & Co.,
bo:h of Spokane, Wash.
ceeds—For
New
York
Shipbuilding Corp.
Dec. 6 filed 74,925 shares of
ing offered
in
common
(par $1)
exchange for 374,624 shares of
be¬
common
(par five cents) of Highway Trailer Co. at rate of
share of Shipbuilding stock for each five shares of
stock of the Trailer company. Offer will
expire
common
on
preferred
Jan. 26,
unless extended.
Nipissing Mines Co.
Ltd., Toronto,
Canada
(1/24)
Jan. 3 filed
Canadian)
1,200,000 shares of
to
be offered
subscription by
common
as
common
stock
of the
stock
of
stock.
Pennsylvania owns
preferred stock and 91% of
Scranton.
(par SI—
"speculative" securities for
stockholders of record Jan. 24,
Statement
effective
Dec. 22.
Petroleum
Dec.
27
Reserves, Inc., New York
filed
100,000
$7,500,000
shares
of
5%
offered
in
share
one
4%
debentures
stock
stock
common
units of $75
of
of
preferred
principal
(par
due
(par
10
1970,
and
$25)
cents)
to
be
amount of debentures,
preferred stock and
shares
10
of
common
stock.
Price—To be supplied
amendment.
—For
acquisition
Underwriter—William
by
properties.
A. M. Burden & Co., New York.
Philadelphia
Jan. 5 filed
of
which
of
Suburban
106,000
shares
are
Co.
common
be
to
Proceeds
(1/26)
stock
Securities Corp., New
Inc.,
stock
sold
Price—$4
chase 800 shares of
-—201
per
Future Estate
if Rio Grande Valley Gas Co., Brownsvilfe, Texas
14 filed voting trust certificates for 2,080,376 shares
Jan.
common
Proceeds—To
Tex.
of
14
filed
pur¬
Underwriter
—Barney F. Bedford, 506 St. Angelus Hotel,
it Pittston Co., New York
common
stock in Pipelife, Inc. Office
Chadbourne Bldg., San Angelo,
same
city.
(2/3)
285,000 shares of
common
stock
(par $1),
which
dated
which expires on April
Uranium & Oil Corp.
2,000,000 shares of common
Price—15 cents per share. Pro¬
exploration and development expenses of
oil properties. Office—618 6th St., Box 8,
(letter of notification)
Dec. 7
(par one cent).
stock
ceeds
—
For
uranium and
Rapid City, S. D.
Inc., New York.
Underwriter—Philip Gordon & Co.,
Salt Lake Hardware
Co., Salt Lake City, Utah
4,062 shares of common
offered to employees who
are
to stockholders; and any
unsubscribed shares after Feb. 4, 1955 to public. Pro¬
ceeds—To restore to working capital amount expended
for acquisition of these securities.
Office—105 N. Third
West St., Salt Lake City, Utah.
Underwriter — J. A.
(letter of notification)
30
Dec.
(par $10), to be first
not stockholders; then
stock
Hogle & Co., same city.
Reynolds & Co., both of New York.
Poly-Seal Corp.
8 (letter of notification) 40,000 shares of capital
stock (par 10 cents) being offered for subscription by
stockholders on a one-for-five
basis for a period of
30 days from Dec. 29.
Price—$1.75 per share. Proceeds
—For machinery and equipment and working capital.
Fe, N. M.
Sept. 14 filed 300,000 shares of common stock (par 10
cents).
Price—$2 per share.
Proceeds—For develop¬
ment and exploration expenses, etc.
Underwriters—R.
V. Klein Co. and McGrath Securities Corp., both of
New
York.
Miguel Uranium Mines, Inc.
San
(letter of notification) 2,000,000
Jan. 6
ceeds
shares of common
Pro¬
(par one cent). Price—15 cents per share.
For mining operations. Office — Mineral
stock
—
Colo.
Junction,
Grand
Underwriter
—
Bldg.,
Tellier & Co.,
Jersey City, N. J,
Up Bottling Co. of Los Angeles, Inc.
19,767 shares of capital stock (no par)
offered for subscription by common stockholders
Seven
to
of
record Jan. 10, 1955 at rate of one new share for each
four shares held.
Price—$32.50 per share. Proceeds—
For expansion program.
Underwriter — Quincy Cass
14 filed
Associates, Los Angeles, Calif.
Silver Pick
Uranium, Inc., Reno, Nev.
(letter of notification) 2,994,000 shares of com¬
mon
stock (par five cents).
Price—10 cents per share.
Proceds—For exploration and development costs.
Of¬
fice—211-206 N. Virginia Street, Reno, Nev. Underwriter
—Western Securities Corp., Las Vegas, Nev.
22
Slick Rock Uranium
Development Corp.
Oct. 8
(letter of notification)
stock
2,900,000 shares of common
(par five
cents), including shares for option to
prior property owner to be amended.
cents per share.
Proceeds—For development
underwriter and
City, Utah.
city.
Office—Newhouse Hotel, Salt
— Van Blerkom & Co.,
Underwriter
if Sodak Uranium & Mining Co., Inc.
13 (letter of notification) 1,200,000 shares of com¬
mon
stock (par one cent).
Price — 25 cents per share.
Proceeds—For mining expenses. Address—P. O. Box 330,
Jan.
Edgemont, S. D.
Underwriter—Capper & Co., New York.
Solomon Uranium & Oil Corp.,
Inc.
2,000,000 shares of com¬
mon stock
(par one cent). Price — 10 cents per share.
Proceeds—For mining expenses.
Offices — 506 Beason
Bldg., Salt Lake City, Utah, and 1016 Baltimore Bldg.,
Kansas City, Mo. Underwriter—E. R. Bell & Co., Kansas
Oct.
(letter of notification)
7
City, Mo,
Somerset Telephone Co.,
stock.
suppiled by amendment. Proceeds—To purchase ad¬
assets and for working capital.
Underwriter—
Wilson (President)
others.
two
be
ditional
Dec.
3,
Voting Trustees—Odbert P.
10, 1956.
June
Co. and
Jan.
of the present voting trust
sion
75,000 shares are to be sold by the company
and 210,000 shares by the Englewood Corp.
Price—To
Allen &
issued under a voting trust agree¬
1955 (which in effect is an exten¬
of common stock to be
ment
same
account
San Angleo, Tex.
share.
'
36, N. Y. Underwriter—Jerome Rosenberg,
Planning. 630 McLean Ave., Yonkers, N. Y.
York
New
of
for
(letter of notification) 50.000 shares of
(par $1).
-
Rapid Film Technique, Inc., N. Y. City
30 (letter of notification) 60,000 shares of com¬
stock (par 10 cents).
Price—$2 per share. Pro¬
ceeds—For working capital. Office—21 West 46th Street,
Lake
Philadelphia, Pa.
10
'
mon
and exploration expenses.
selling stockholders and 100,000 shares by com¬
pany. Price—To be supplied by amendment. Proceeds—
For capital exDenditures.
Underwriter—Drexel & Co.,
Jan.
York.
July
(par $7.50),
certain
stock
(par 10 cents). Price—$1 per share; Proceeds—For gen¬
corporate purposes.
Underwriter.—James Anthony
Price—10
Water
206,000 shares of
(regulation "D") 300,000 shares of common
Dec. 30
eral
Nov.
Jan.
stock
stock
one
4V2%
common
* Pipecote Service Co.,
Mining Co., Inc., Almira, Wash.
Sept. 8 (letter of notification) 500,000 shares of common
•
the
share.
35 Court
stock
sylvania's
1,000,000 shares of
New
$23
stock, or for each lot of four shares of Scranton
3.35% cumulative preferred stock, three shares of Penn¬
Pacific, to complete Pacifies planned expansion
program
Stearns &
stock, two shares of Pennsylvania's
common
approximately 91%
Mines, Ltd., Toronto,
Canada
be
convertible
1, 1976, of which $4,380,400
being offered for subscription by
Co., refund mort¬
Valley Telephone
Methow
of
assets
cumulative preferred
are
5%
$85,000 of 5V2% 20-year
sinking fund bonds due Dec. 1, 1979. Price—At par (in
denominations of $1,000 each). Proceeds—To purchase
principal amount
of
Temporarily
Telephone Co., Rainier, Wash.
(letter of notification)
14
Dec.
Dec.
$4,500,000
—
delayed.
lative preferred stock, or, at the election of the Scran¬
ton
shareowners, for each share of' Scranton's 3.35%
filed
Offering
Co.; and Glore, Forgan & Co.
income debentures due Jan.
22
shares of cumulative preferred stock
Price—To be supplied by amendment. Pro¬
bank loans and for construction pro¬
Samicol Uranium Corp., Santa
Pennsylvania Power & Light Co.
Dec.
screw-cap
New Y'ork,
Underwriters—Morgan Stanley & Co.; Drexel &
gram.
7
Fremont
plastic
sells
and
Lexington Avenue,
Dec. 22 filed 250,000
Rushmore
com¬
share. Pro¬
Congress St.,
Mass.
230
405
—
Underwriter—None.
Y.
and
Laboratories, Inc.
(letter of notification) 250,000 shares of
mon
Oct.
(par five cents). Price—10 cents per share.
Proceeds—For exploration and development operations.
Office—Ernest and Cranmer Bldg., Denver, Colo.
Un¬
derwriter—Investment Service Co., same city.
To
Price—$100
Paramount Uranium Corp.,
Colo.
3,000,000 shares of com¬
(letter of notification)
5
mon
at
To expand mill, to meet short-term loans borrowed in
acquiring that plant at Bridgeport, Conn., and for gen¬
eral corporate purposes.
Office — Bridgeport, Conn.
Underwriter—Estabrook & Co., Boston, Mass., and New
York., N. Y. Offering—Expected today (Jan. 20).
Nov.
(letter of notification) 3,000,000 shares of com¬
mon
stock (par one cent). Price—10 cents per share.
Proceeds—For exploration and development expenses.
Underwriter—James E. Reed Co., 139 North Virginia
5
Jan.
stock
a
Office
Thursday, January 20, 1955
Public Service Electric & Gas Co.
Paraderm
Monte Cristo
Oct.
Corp.
subordinated debentures,
920,000 shares of common
(par $1); and common stock purchase warrants
for 276,000 shares of additional common stock. These
securities are to be offered in 92,000 units, each unit
A,
N.
Manufactures
—
closures.
(par $100).
filed $4,600,000 of 6%
31
Business
.
ceeds—To reduce
stock
120,336 shares of common
Jan. 6 filed
of
a
on
$2.06
series
Natural Gas Co.
Missouri
share-for-share basis. Price—$2 (Canadian)
per share.
Proceeds—For payment of
options, development of properties, and for machinery
and, equipment.
Underwriters — Allan H. Investments,
Ltd.; Alator Corp., Ltd.; Louis A. Chesler; and Bradley
1955,
Continued jrorn page 123
.
.
Norridgewock, Me.
(letter of notification) 2,200 shares of capital
Price—At par ($5 per share). Proceeds—For ex¬
11
pansion and new equipment. Underwriters—E. H. Stan¬
ley & Co., Waterville, Me.; and Clifford J. Murphy Co„
Portland.
Me.
Star Uranium Corp., Sait
Lake City, Utah
(letter of notification) 6,000,000 shares of
mon stock
(par one cent). Price—Five cents per
Proceeds
For exploration and
development
Underwriter—Ned J. Bowman Co., Salt Lake City,
Aug. 2
—
com¬
share.
costs.
Utah.
\
Volume 181
Number 5396
.
.
The Commercial and Financial Chronicle
.
(381)
125
"
Stardust, Inc., Reno, Nev.
July 9 filed 621,882 shares of preferred stock (par $10)
and 621,882 shares of common stock (par one cent) to be
offered in units of
share of each class of stock. Price
one
—$10.01 per unit. Proceeds—For purchase of land and
construct and
•
State
equip
Fire
a
to
luxury hotel. Underwriter—None.
&
Casualty Co., Miami, Fla.
Dec. 23 filed 125,000 shares of class A non-voting com¬
mon
stock
(par $1) being offered for subscription by
holders of class A and class B
one
share
new
for each two
stocks at rate
common
shares
rights to expire Jan. 27. Price—$3.75
held
per
of
of Jan.
13;
share. Proceeds
as
company to expand its business.
Under¬
writer—A. M. Kidder & Co., New York, N. Y. and
Miami,
Florida.
Stewart
Jan.
3
Uranium
Drilling
(letter of notification)
stock
Co.,
500,000
shares of class A
cent). Price—50 cents per share. Pro¬
mining expenses. Office—Citizens National
Trust Bldg., Baytown, Texas.
Underwriter—
(par
one
ceeds—For
Bank
&
General Investing Corp., New York.
Stinnes
(Hugo)
Corp., New York
Nov. 22 filed $6,000,000 of notes and an unspecified num¬
ber of shares of common stock (par $5) to be offered
in
units
of
common
of
$1,000 of notes
shares.
and
Price—To
Proceeds—For
ment.
an
be
retirement
unspecified number
supplied by amend¬
7% debentures of
of
Hugo Stinnes Industries, Inc., due 1946. Underwriters—
Halsey, Stuart & Co. Inc. and A. G. Becker & Co. Inc.,
Chicago and New York.
Statement to be withdrawn.
Financing
done
in Germany.
Superior Uranium Co., Las Vegas, Nev.
Sept. 1 (letter of notification) 29,910,000 shares of com¬
mon stock.
Price—At par (one cent per share). Proceed!
—For development and exploration costs. Office—Medi¬
cal Arts Bldg., Las Vegas, Nev. Underwriter—Uranium
Brokers, Inc., the same city.
Swedes
Jan.
Uranium
Corp., Salt Lake City, Utah
(letter of notification) 2,500,000 shares of com¬
5
stock
(par three cents). Price—10 cents per share.
Proceeds—For exploration and development
expenses.
Office—Newhouse Bldg., Salt Lake City, Utah. Under¬
mon
writer—Guss & Mednick Co., same city.
stock
mon
(par five cents). Price—10 cents per share.
Proceeds—For exploration and development of
proper¬
ties.
Office
Texas.
Lake
1406
—
Life
Underwriter
—
of
America
Western
Building, Dallas,
Corp., Salt
Securities
City, Utah.
stock.
Price—10
cents
share.
per
com¬
Office
—
317
Underwrite*
Shelley Co., Denver, Colo.
Mines, Ltd. (Canada)
(Regulation "D") 599,760 shares of common
(par $1—Canadian).
Price—50 cents per share.
Sept.
24
stock
S. funds.
Proceeds—For exploration
ment expenses and
acquisition of property.
—H. J. Cooney & Co., New York.
and develop¬
Underwriter
Temple Mountain Uranium Co.
7
(letter
derwriter—Walter Sondrup, same city.
ic Texas Electric Service Co.
19
1985.
for
filed
$17,000,000
Proceeds—To
construction
(2/23)
first mortgage bonds due
$7,000,000 3%% bonds and
of
redeem
program.
Underwriter—To
be
deter¬
mined
by competitive bidding. Probable bidders: Hal¬
sey, Stuart & Co. Inc.; The First Boston Corp.; Kuhn,
Loeb
&
Co., Blyth Co., Inc. and Lehman Brothers
(jointly); Salomon Bros. & Hutzler; Kidder, Peabody &
Co.
and
Merrill
(jointly);
Co.
and
Union
Drexel
Lynch,
Pierce,
Fenner
&
Beane
Securities Corp., Hemphill, Noyes &
&
Co.
pected to be received
Texas
June
21
(jointly).
up
to 11:30
Bids—Tentatively ex¬
(EST) on Feb. 23.
a.m.
International Sulphur Co.
filed 455,000 shares of common
stock
(par 10
share for each 4^ shares held; and 70,000 shares
for account of certain selling stockholders. Price—To
new
be supplied
by amendment. Proceeds—For exploration
and drilling, and payment of bank loans and advances.
Underwriter—Vickers Brothers, New York, on a "best ef¬
+ Texboard, Inc., Dallas, Texas
17 filed $1,500,000 of 6% series A debentures due
serially from Feb. 1, 1957 to Aug. 1, 1961, and $1,000,000
of 6% series B convertible debentures due serially from
Feb. 1, 1962 to Aug. 1, 1966. Price—To be supplied by
Jan.
facturing
Proceds—To construct and operate a manu¬
plant
near Orange, Tex., for the purpose
of
insulation
building
products.
Under¬
writer—Emerson Cook Co., Palm Beach, Fla.
manufacturing
•
14
filed
cents)
350,779 shares of common stock (par 10
being offered for subscription by stockholders of
Texas
Industries, Inc. of record Dec. 10, 1954 at rate of
one
share
Texcrete
for each
share
of
Texas
Industries
then held (with an oversubscription
expire
and
on
debentures
Jan. 27.
$3.50 to public.
eral
privilege); rights to
share, to stockholders
Price—$3 per
Proceeds—For expansion and gen¬
corporation purposes.
Pierce & Co., Inc., Dallas,
Antonio, Tex.
due
Underwriters
Rauscher,
Tex., and Russ & Co., San
Offering—Expected this week for a 14-
day standby.
convert¬
Dec.
1, 1960 and 29,500 shares of
stock (par 10 cents) to be offered in units of
$100 of debentures and 10 shares of stock.
Price—$101
per unit.
Proceeds—To purchase equipment to retire
$50,000 of notes and for working capital.
Top Notch Uranium & Mining Corp.
Jan. 5 (letter of
notification) 4,000,000 shares of common
stock (par two
cents). Price — Five cents per share.
Proceeds
For exploration and
—
Office—94
development expenses.
North
Main
St.,
Smithfield, Utah. Under¬
writer—Lewellen-Bybee, Inc., Washington, D. C.
Trans-Continental
Oct.
1
mon
Uranium
Corp.
stock.
(letter of notification) 2,990,000 shares of
Price—At par (10 cents per
com¬
share).
ceeds—For
exploration
Pro¬
and
development costs.
Office
East, Salt Lake City, Utah. Underwriter
—Western Securities
Corp., same city.
—358 S. 3rd St.
Turf
Nov.
Paradise,
12
and
Inc., Phoenix, Ariz.
filed
83,334 shares of common stock (par
$10)
shares of preferred stock (par $20) to be
83,334
offered
in
units
of
one
share of each class of stock.
Proceeds—To construct racing plant
and to repay obligations.
Underwriter—Selected Securi¬
Price—$30 per unit.
ties, Inc., Phoenix, Ariz.
Ucolo Uranium Co., Salt Lake
City, Utah
Sept. 13 (letter of notification) 2,800,000 shares of com¬
mon stock (par one
cent). Price — 10 cents per share.
Proceeds—For exploration and
development costs.
Of¬
Bldg., Salt Lake City, Utah. Un¬
derwriter—Western Securities Corp., the same
city.
—
Utah
Uranium Corp., Las
Vegas, Nev.
Aug. 20 (letter of notification)
10,000,000 shares of capi¬
tal stock (par 1
cent). Price
Three cents per share.
Proceeds—For exploration and
development expenses.
Office—1818 Beverly
Way, Las Vegas, Nev. Underwriter
—First Western
Securities, same city.
Vulcan-Uranium Mines, Inc.,
Wallace, Idaho
(letter of notification) 1,500,000 shares
of
Oct. 15
mon
Uranium, Inc., Salt Lake City, Utah.
(letter of notification) 15,000,000 shares of com¬
mon stock
(par one cent). Price—Two cents per share.
Proceeds
For
exploration and development costs.
Office—424 Judge Bldg., Salt Lake
City, Utah. Under¬
—
United
Dec.
29
Artists
same
city.
Theatre
Circuit, Inc. (1/25-26)
400,121 shares of common stock (par $1).
be
supplied by amendment. Proceeds—To
filed
Price—To
retire bank loans
—Allen
&
and for working capital. Underwriter
Co., New York.
United States
Plywood Corp. (1/26)
$25,000,000 of 25-year sinking fund deben¬
Jan.'l, 1980. Price—To be supplied by amend¬
Dec. 22 filed
tures due
ment.
Proceeds—To
debentures
and
for
redeem
other
purposes.
Under¬
Price
At par
($1 per share). Proceeds
For
cost of Driller Boy
(drilling equipment which company
rents out), and
working capital. Office—c/o Edwin J.
Dotson, attorney-at-law, Simon Bldg., 230 Fremont
St.,
Las Vegas, Nev.
Underwriter—Robert B. Fisher In¬
vestments, 510 South Fifth St., Las Vegas, Nev.
—
—
Urainbow, Inc., Salt Lake City, Utah
(letter of notification) 2,000,000 shares of
Aug. 31
mon
stock
Proceeds
—
com¬
(par two cents). Price—15 cents per share.
For exploration and
development expenses.
Office—S08 Kearns Bldg., Salt Lake
City, Utah. Under¬
writer—Austin B. Smith
Brokerage Co., the same
city.
Uranium
Discovery & Development Co.,
Wallace, Idaho
Nov.
tal
16
com¬
* Webster
Uranium
Dec. 30
Mines,
Ltd.,
Co.,
Samuels
Toronto, Canada
(regulation "D") 300,000 shares of
common stock
(par 10 cents). Price—$1
per share. Proceeds—For
gen¬
eral
corporate
purposes.
Underwriter—James Anthony
Securities Corp., New York.
Wenga Copper Mines, Inc., N. Y.
Nov.
18
(Regulation "D") 900,000 shares of
common
(par five cents). Price—30 cents
per share.
Pro¬
ceeds—For general corporate
purposes.
Underwriter
Willis E. Burnside &
Co., New York.
stock
West Coast Pipe Line
Co.,
20, 1952 filed $29,000,000
due Dec. 15,
1964, and
Nov.
12-year 6% debentures
580,000 shares of common stock
(par 50 cents) to be offered
ture
Dallas, Tex.
and
share of
one
in units of
stock.
amendment.
Proceeds—From
Weld
and
one $50 deben¬
Price—To be supplied
by
sale of units and
1,125,000
additional shares of common stock
and private sales of
$55,000,000 first mortgage bonds to be used to
build a
1,030 mile crude oil pipeline.
Underwriters
Securities Corp., both
White,
—
&
York.
Co.
Union
of
New *
Offering—Postponed indefinitely.
West Coast
Pipe Line Co., Dallas, Tex.
Nov. 20, 1952 filed
1,125,000 shares of common stock
(par
50 cents).
Price—To be supplied
by amendment. Pro¬
ceeds—Together with other funds, to be used to
build
pipeline.
Securities
poned
Underwriters—White,
Corp.,
both
of
New
Weld
&
York.
indefinitely.
Co.
and
Union
Offering—Post¬
Western Plains Oil & Gas
Co.
May 24 filed 100,000 shares
of
common stock
(par $1>.
Proceeds—To redeem 1,250 out¬
standing preferred shares
($125,000), to repay bank
loan, etc. ($2,500); for purchase or
acquisition of addi¬
Price—$4.75
per share.
tional
mineral interests, leases and
royalties in the
United States and. Canada and
for other
corporate pur¬
poses.
Rice
&
Office—Glendive, Mont.
Co., St. Paul, Minn.
Underwriter—Irving
J.
★ Wolverine Fabricating &
Manufacturing Co., Inc.
13 (letter of
notification) 35,840 shares of common
(par $5).
Price—$6.50 per share.
Proceeds—To
convert and
equip plant and to pay
manufacturing costs
of product.
Office
2638 Princess
St., Inkster, Mich.
Underwriter—Goodbody & Co., Detroit, Mich.
Jan.
stock
—
Woodland Oil & Gas
Co., Inc.
(letter of notification) 299,900 shares of
common
(par 10 cents). Price—$1 per share.
Proceeds—
Dec. 21
stock
Universal Petroleum Exploration &
Drilling Corp.
(letter of notification) 300,000 shares of common
stock.
Brokerage
Hotel, Wallace, Idaho.
$15,000,000 of outstanding
corporate
writer—Eastman, Dillon & Co., New York.
stock.
Price—At par (five cents per
share). Pro¬
ceeds—For expenses incident to
mining operations. Ad¬
dress—P. O. Box
289, Wallace, Idaho. Underwriter—Alden J.
Teske, d/b/a Wallace
Uintah
Oct. 5
(letter of notification) 1,000,000 shares of capi¬
Price—At par (five cents
per share).
Pro¬
core
drilling program upon two groups of
Address—Box 709, Wallace, Idaho.
Underwriter
For
equipment, drilling expenses and working
capitaL
Broadway, New York, N. Y. Underwriter
Office—42
E. M. North
World
Co., Inc.,
same address.
Uranium
Mining Corp.
*
(letter of notification) 9,996,000 shares
July 21
stock
mon
of
com¬
(par one cent).
Price
Three cents
pef
Proceeds—For exploration and
development ex¬
penses.
Office—323 Newhouse
bldg., Salt Lake City,
Utah. Underwriter—P. G.
Christopulos & Co., same city.
—
share.
Wynn Pharmaca! Corp.
23 (letter of
notification) 85,000 shares
Dec.
common
stock
Proceeds
—
(par
10
cents).
Price—$2.50
of
class B
per
For
share.
production, development and sale of
products, working capital and other corpo¬
company's
rate purposes.
Office—5119 West Stiles
St., Philadel¬
phia, Pa. Underwriter—Charles A.
Taggart & Co., same
city.
stock.
ceeds—For
—Wallace Brokerage Co., same
city.
ic Uranium Oil & Gas Co., Reno, Nev.
(letter of notification) 300,000 shares of common
stock. Price—At par ($1
per share). Proceeds—For oil,
gas and mining activities.
Office—139 N. Virginia St.,
Reno, Nev. Underwriter—None.
Jan. 4
Uranium
Royalties, Inc., Rapid City, S. Dak.
(letter of notification) 1,165,000 shares of com¬
mon
stock.
Price—At par (25 cents per
share). Pro¬
ceeds—For mining
expenses, etc. Office—626 Sixth St.,
Rapid City, S. D. Underwriter—Wendell E.
Kindley &
Co., same address.
Uranium Shares,
Inc., Denver, Colo.
(letter of notification) 30,000,000 shares of
mon
stock.
Price—At par (one cent
per share).
Dec. 22
Denver,
ver,
&
Colo.
com¬
Pro¬
Office—3038 Wyandot St.,
& Co., Fred W.
Mile High Securities
Co., all of Den¬
ceeds—For mining
Miller
Texcrete Structural Products Co.
Dec.
ible
Dec. 27
forts" basis.
amendment.
Ferry, Inc.
(letter of notification) $295,000 of 5Vz%
Nov. 23
claims.
cents), of which 385,000 shares are to be offered for
subscription by common stockholders at the rate of one
are
M. T. Trailer
Oct. 4
of
notification) 3,500,000 shares of com¬
mon stock
(par 2V2 cents). Price — 3 cents per share.
Proceeds—For exploration and development
expenses.
Office—39 Exchange Place, Salt Lake
City, Utah. Un¬
Jan.
T.
•
Tarbell
Oct.
Virginia
St., Reno, Neb. Underwriter—Stock, Inc., Salt Lake
City.
•
Proceeds—For
exploration and development expenses.
Railway Exchange Building, Denver, Colo.
I.
&
Office—430 Judge Bldg., Salt Lake
City, Utah. Under- *
writer—Mid-Continent Securities, Inc., same
city.
—
writer—James E. Reed Co.,
Tacony Uranium Corp., Denver, Colo.
Aug. 17 (letter of notification) 1,700,000 shares of
mon
Underwriter—Jay W. Kaufmann
city.
same
Thunderbird Uranium Co.,
Reno, Nev.
Aug. 3 (letter of notification) 1,800,000 shares of com¬
mon stock
(par 10 cents). Price — 15 cents
per/Share.
Proceeds—For mining activities. Office—206 N.
fice—906 Walker Bank
-Sytro Uranium Mining Co., Inc., Dallas, Texas
Sept. 9 (letter of notification) 2,975,000 shares of com¬
—U.
Co.,
common
Inc.
Ave.,
New York 22, N. Y.
enable
—To
—E.
Theatrical Subsidiaries, Inc.
(letter of notification) 125,000 shares of common
stock (par 10 cents).
Price—$2 per share. Proceeds—
For working capital, etc.
Office — 598 Madison
Jan. 4
expenses.
Underwriters—Kamp
Co. and
Colo.
Utaco
Wyoming Uranium Corp., Salt Lake
City, Utah
Aug. 23
(letter of notification) 9,166,667
shares of com¬
stock (par 1 cent).
Price—Three cents per share.
Proceeds—For exploration and
development expenses.
Underwriter—James E. Reed Co., Salt Lake
City, Utah.
Zenith Uranium &
Mining Corp.
July 12 (letter of notification) 300,000 shares of
common
stock (par one
cent). Price—$1 per share.
mon
For mining
operations.
Boston, Mass.
Proceeds—
Underwriter—Sheehan
&
Co.,
Prospective Offerings
Air-Way Electric Appliance Corp.
Dec. 6 directors approved
proposals to increase the au¬
thorized common stock (par
$3) from 400,000 shares to
1,200,000 shares, and to authorize $5,000,000 of preferred
stock to carry a dividend rate of
not exceeding 5%, with
a
$50 or a $100 par value. Both stock issues are
either
subject to approval of the stockholders. Underwriters—
Wm. C. Roney &
Co., Detroit, Mich., has handled nu¬
secondary offerings in the past.
merous
Uranium, Inc., Salt Lake City, Utah
(letter of notification) 6,000,000 shares of com¬
stock (par one cent). Price—Five
cents per share.
Proceeds—For exploration and
sell
fice—420 .Felt
—To
Utah Apex Uranium Co.
Oct. 18 (letter of
notification)
bidding.
Halsey, Stuart & Co. Inc.; Morgan
Stanley & Co.; Union Securities Corp., Equitable Securi¬
ties Corp. and Drexel & Co.
(jointly); The First Boston
Oct.
7
mon
development costs. Of¬
Building, Salt Lake City, Utah. Under¬
writer—Western Securities
Corp., Las Vegas, Nev.
3,000,000 shares of capi¬
(par three cents). Price—Six cents per share.
Proceeds—For exploration and
development expenses.
tal stock
Alabama
Dec.
30
it
Power Co.
was
(5/31)
announced
company plans to issue and
$15,000,000 first mortgage bonds due 1985. Proceeds
repay bank loans and for construction
program.
Underwriter—To be determined by competitive
Probable
bidders:
Continued
on
page 12S
The Commercial and Financial Chronicle
126
Continued jrom page
Harriman Ripley & Co. Inc.;
(jointly).
(EST) on
Registration—Scheduled for May 4.
Rent-A-Car System, Boston, Mass.
*Avs
financing may result
of control of this company by
Richard S. Robie for $8,000,000, but details are not yet
available. Office—Statler Hotel, Boston, Mass. Under¬
writer—Van Alstyne, Noel & Co., New York.
Jan.
14
it
reported that some
was
acquisition
the
from
Central
Maine Power Co.
31, W. F. .Wyman,
Dec.
Jan.
President, stated that company
stock,
of
Minneapolis, Minn. corporation plans to offer 361,922 additional shares of capital stock to its stockholders
on
basis of one new share for each eight shares held.
Price—To be determined at time df offering (stockhold¬
First Bank Stock Corp.,
Dec. 21 it was announced
Kansas Gas & Electric
Dec. 23
ceeds—To increase
Stuart
Florida
Dec.
plans to offer to its
additional shares of common
l-for-10 basis in May or June 1955. Under¬
on
a
writers:
reported
was
company
about 232,000
Kidder,
Co.
&
Peabody
Merrill
and
Bear, Stearns & Co. (jointly); Kidder, Peabody
Lynch, Pierce, Fenner & Beane (jointl:
Kuhn, Loeb & Co. and A. C. Allyn & Co. Inc. (jointl;
,25
21-day standby). Price—To be fixed later.
and surplus. Underwriter
—McDonald & Co., Cleveland, O.
'
/
jasis
(with
a
1'roceeds—To increase capital
Central & South West Corp.
.
.
applied to SEC for permission to issue
shares of common stock (par $5). Pro¬
ceeds—To repay bank loans and loan from insurance
jompany, and to purchase common shares of subsidiaries.
Underwriter—To be determined by competitive bidding.
Probable bidders: Blyth & Co., Inc. and Smith, Barney
sell 600,000
nd
Co.
&
The First Boston Corp. and Merrill
Fenner & Beane (jointly);; Lehman
Lazard Freres & Co. (jointly). Offering -
(jointly)
Pierce,
Lynch,
Brothers and
Expected in March.
bidders: Haisey, Stuart & Co.
Probable
bidding.
Inc.;
Blyth & Co., Inc.
Eastern Illinois RR.
Dec. 29 the ICC approved plan to offer $15,336,480 of
5% income debentures due Jan. 1, 2054, in exchange,
par for par, for the outstanding 383,412 shares of class
A stock (par $40).
The offer expires Jan. 21, 1955.
Chicago &
Chicago, Rock Island & Pacific RR.
11, J. D. Farrington, President, announced that the
directors have authorized the issue and sale of not more
Jan.
than $65,000,000
—To redeem its
of 40-year income debentures. Proceeds
outstanding preferred stock (about 640,-
by competitive bidding,
Haisey, Stuart & Co. Inc.; Morgan
Stanley & Co.; Lehman Brothers, Lazard Freres & Co.
and Bear, Stearns & Co. (jointly).
000
Underwriters—If
shares).
bidders may include:
•
Citizens National Trust &
Los
Jan.
Savings Bank of
Angeles
stockholders
14
of
record
Jan.
11
were
given the
rights to subscribe for 200,000 additional shares of new
common stock (par $10) on the basis of two new shares
for each five shares held; rights to expire on Feb. 14.
Price—$33 per share. Proceeds—To increase capital and
surplus. Underwriter—Blyth & Co., Inc., Los Angeles,
Calif.
^Colorado National Bank of Denver (Colo.)
12, the Bank offered its stockholders of record Jan.
11 the right to subscribe on or before Feb. 1 for 30,000
additional shares of capital stock (par $25) on the basis
Jan.
of
one
new
writers
share for each share held. Price—$42.50 per
share. Proceeds—To increase capital and surplus.
Under¬
Boettcher & Co.;
Peters, Writer & Christensen, Inc.; and Earl M. Scanlon
writers—Bosworth,
Sullivan
&
Co.;
Uranium
Mines, Inc.
11
of
one
of not to exceed
$6,000$6G-eonvertible debenture bond*
in connection with the acquisition of Uranium Mines of
America, Inc. stock. Public offering of $2,000,000 bonds
of
shares
capital stock
$5)
(par
10 shares held
share for each
new
record
stockholders of
to
*
Grimm
&
Co.
of
Paterson,
N.
J.
000
(1/21)
20,540 shares of capital stock
approximately
ments
30,000 shares presently outstanding)
Oct.
its
will be offered at
year.
schedule; all
are
SPEED
one
tees
is
Most of these
printed
are
Motors
General
Jan. 3 it
was
new
one
rigorous
of the
reasons
Corp.
(2/8)
additional
share for each 20 shares held
on
basis
of
(at last accounts
Proceeds—About $325,000,000, for capital expen¬
and working capital.
Underwriter — Morgan
Stanley & Co., New York. Subscription Agents—J. P.
Morgan & Co. Incorporated, New York, N. Y.;; National
Bank
of
Detroit, Detroit, Mich.; Continental Illinois
National Bank & Trust Co., Chicago, 111.; and Bank of
American N. T. & S. A., San Francisco and Los Angeles,
Calif. Registration—Expected about Jan. 20, for signing
fering.
ditures
about Feb.
7.
General
Telephone Co. of California
applied to California P. U. Commis¬
authority to issue and sell 200,000 shares of
4^2% preferred stock (par $20).
Proceeds—To re^ay
bank loans and for expansion program. Underwriters—
May be Paine, Webber, Jackson & Curtis; Stone & Web¬
ster Securities Corp.; and Mitchum, Jones & Templeton.
Dec.
15 company
sion
for
Georgia Gas Co.
Aug. 27 it was announced that this company, a sub¬
sidiary of United Cities Utilities Co., contemplates the
issue and sale to residents of Georgia of $300,000 par.
value of preferred stock, subject to the approval of
the Georgia P. S. Commission.
Georgia Power Co.
30
it
(5/10)
announced
was
company
plans to issue
and
$12,000,000 of first mortgage bonds due 1985. Pro¬
ceeds—To
gram.
retire
bank
loans
Underwriter—To
bidding.
be
and
for
construction
determined
by
pro¬
competitive
Probable
The First Boston
bidders: Haisey, Stuart & Co. Inc.;
Corp.; Lehman Brothers; Union Securi¬
authorizing
latter
part
capital stock
Insurance
Co.
NY 1-3167
71 CUNTON ST.,
7
offering to stockholders during the
March 0l 100j000 additional shares of
an
on
four shares held.
the
basis
of
it
announced
was
shares
of
Co.
proposes to offei
1, next, 511,205 ?ac
(par $100) on a 1-fc
company
record
March
American
of
one
if New York Telephone Co.
Jan. 17, Keith S. McHugh, President,
the
new
Price—To be named
share
for
each
later. Proceeds—
Pressprich & Co., both of New York.
North
Dec.
17
stock
To
Penn
it
was
(par $5)
be
Gas
later.
named
420,000
NEWARK, N. J.
shares
of
comi
be offered to public.
Prie
Proceeds—To The Post Publisl
★ Northern
Jan.
12, D.
Indiana
Public Service Co.
H.
Mitchell, President, announced that
company
plans to raise approximately, $12,000,00(
new
money (which may be done through sale of ]
ferred and/or common stock). Underwriters—Prob;
Central Republic Co. (Inc.), Blyth & Co., Inc.;
Merrill Lynch, Pierce, Fenner & Beane.
Pacific Northwest
Pipe Line Corp.
20, C. R. Williams, President, announced that
planned to offer publicly $16,800,000 of 6% interim r
due May 1, 1956 (convertible into preferred stock at
Dec.
turity) and 280,000 shares of common stock (par $1
units of $60 principal amount of notes and 10 share
stock. Price—$70 per unit. Proceeds—Together with o
funds, to finance construction of a 1,400-mile natural
pipeline between Ingancio, Colo., and Sumas, Wash
the Canadian border. In addition, 1,659,200 share
common
stock would
be offered
for subscriptior
present stockholders who already own 700,000 gh
Underwriter—White, Weld & Co.; Kidder, Peabod
Co.;-Dominion Securities Corp.; Union Securities (
Offering — Expected to be completed in first ha
February, 1955.
Pacific Power & Light Co.
19 stockholders approved a
Oct.
which
additional
are
struction.
to
proposal to auth
stock of $100 par v
preferred
,
be sold in series.
Proceeds—Fbr
new
Offering—Not imminent.
if Perkin-Elmer, Inc. (Conn.)
17 it was reported
that about
Jan.
stock
common
Price
—
will
soon
be
50,000 share
registered with the
Around $19.50 per share. Proceeds
—
To se
stockholders. Underwriters—Lehman Brothers and 3
Whitney, Goadby & Co.
Porter-Cable
Jan.
the
,
Machine
Co.,
in the United States and Canada.
N.
Syracuse, N. Y.
7, De Alton J. Ridings, President, announced
company is planning to issue a new block of
mon
1955.
stock
(no
par
value) to
finance further expa.
Underwriter—Wi
Pope, Inc., Syracuse, N. Y.
Public
Service Co.
of Oklahoma
Holly Corp., New York
Sept. 9 S. B. Harris, Jr., President, stated that prelimin¬
ary financing by Holly Uranium Corp. has been arranged
Nov.
to be followed
Underwriter—To be determined by competitive bk
by
public offering early in 1955 after
plans to distribute part of its hold¬
ings of Holly Uranium Corp. stock to its stockholders.
which Holly Corp.
a
1
soon
625,000 shares outstanding, will be offered for sale early
in
announced
than
Co.
announced
will
more
Co., publisher of The Boston Post. Underwriter—I
man, Dillon & Co., New York.
Registration—Expeearly in January.
Harvard Brewing Co.f Lowell, Mass.
Dec. 31 the Alien Property Office of the Justice
Depart¬
ment said it is
anticipated that the government's hold¬
will have to raise
$100,000.
of new capital money to aid in carrying out its exp
sion
and
improvement program which will cost
proximately $200,000,000. Underwriter—For and bo
to
be
determined
by competitive bidding.
Probi
bidders: Morgan Stanley & Co.; Haisey, Stuart & Co.
company
ings of 345,760 shares of capital stock (par $1), out of
MArket 3-4994
gene
Telephone & Telegraph
England
19
stockholders
200,000
announced stockholders will vote March
Establiibtd 1925
77 THAMES ST., NEW YORK 6
guaran¬
complete printing service available.
undicfnpress,
x
Fire
was
expand activities in the casualty and multiple line
fields. Underwriters—The First Boston Corp. and R. W.
by Pandick"
plans to offer 5(
to the motorist and
—None.
stock
commn
To
"Printed
und
capital stock
Telephone & Telegraph Co., its parowns about 69%
of presently outstanding shares. > I
ceeds—To
repay
temporary borrowings.
Underwr
88,513,817 shares were outstanding); rights to expire about
March 17.
Price—To be determined shortly before of¬
Hanover
a
New York,
shortly after completion of the current offer
basis.
announced company plans to offer to com¬
stockholders
mon
Jan. 12 it
delivered "on time."
the finest and most
WOrth 4-2900
on
company
(par five cents)
tLonal
public auction at 2 p.m. (EST) on Jan. 21 in the Passaic
County Court House at Paterson, N. J. The starting bid
is not to be less than $28 per share.
on
each
announced
was
shares
New
(par
$10), and in any even not less than 20,000 shares (out of
(jointly); Harriman Ripley
Inc.; Blyth & Co., Inc. and Kidder, Peabody & Co.
(jointly). Bids—Expected to be received up to 11 a.m.
(EST) on May 10. Registration—Scheduled for April 13.
district, Pandick Press, Inc. produces millions of important docu¬
company's pi
of 100,000 shares to service station owners and operab
Office—Room 717, 141 Broadway, New York 6. N. Y.
& Co.
headquarters in the heart of New York's great financial
the
to
Majestic Auto Club, Inc.
Aug. 25 it
and Salomon Bros. & Hutzler
From its
addition
derwriter—Kidder, Peabody & Co.,
previous public financing.
Corp. and Equitable Securities Corp.
(jointly);
Morgan Stanley & Co.; Kuhn, Loeb & Co.; Shields & Co.
t D
substantial
a
the
that
•
Working Co.
was
wrote
public
Co.
Trust
Wood
M
it
Portland's Kenton district have been approved by
directors and construction will begin immediately; I
6, William H. Dillistin, Chairman of the Trustees
Segregated Assets of this company, announced
Jan.
and
27
in
C. Langley & Co.; HornHayden, Stone & Co.;
Co.; and Hallowell, Sulz¬
&
*
Shields & Co.
nancing
Co.
Franklin
of
Boenning
15)
plans sale of 60,(
(par $100). Proceeds—For n<
announced company's National Tank
Pipe division will enter the plastic pipe business oi
production basis on or about March 15. Plans for
Bache & Co.;
Weeks;
(3
company
Merrill
Dec.
133,300
ties
$ p £
Co. and
—Blair & Co. Incorporated; W.
&
Electric Co.
(jointly); Kidder, Peabody & e
;Lynch, Pierce, Fenner & Beane (jointl
Bids—Tentatively expected March 15.
1955; rights to expire on Jan. 28. Unsubscribed shares
(not exceeding 10,000 shares) are to be first offered to
employees of the Bank and The Employees' Profit shar¬
ing and Benefit Plan of the Bank. Price—$32 per share.
Proceeds—To increase capital and surplus. Underwriters
blower
reported
Underwriter—To be determined by co
bidding. Probable bidders: Lehman Brothe
Blyth & Co. Inc.; Union Securities Corp.; White, Weld
and
at the rate
of Jan. 11,
as
&
was
petitive
M
offered
Bank
Gas
it
construction.
Haisey,
and
(N. Y.)
,
:
Jan.
sell
stockholders authorized the issuance and sale
Co.
^ Franklin National Bank of Franklin Square
Dec.
Consolidated
bidders:
&
23
shares of preferred stock
Corp.
Co.
July 23
—
berger &
Chesapeake & Ohio Ry.
Sept. 29 it was reported company plans to issue and
sell $40,000,000 of new bonds.
Proceeds—To refund ita
outstanding $37,851,000 37/s% bonds and $2,441,000 4%
bonds. Underwriter—May be determined by competitive
Dec.
$10,000,000 of.first mortgage bonds. Under¬
To be determined by competitive bidding.
additional
18 company
an.
Kansas
reported company may issue and sell late
in 1955 about
Peabody
proposal authorizing the sale of 171,875 addi¬
tional shares of capital stock to stockholders on a l-for-4
Bids—Expected March 15.
Power Corp.
was
Co.
Co. and Merrill
Stuart & Co. Inc.; Kidder,
Merrill Lynch, Pierce, Fenner &
Beane (jointly); Lehman Brothers and Blyth & Co., Inc.
(jointly); Glore, Forgan & Co.; and The First Boston
Florida
Dec. 31 it
Probable
a
s
and
Lynch,
oody & Co. (jointly).
on
plans to issue and
competitive bidding? Probable bidders: Hals*
Co. Inc.; Glore, Fdrgan & Co. and Goldim
(jointly); Blyth & Co., Inc. and The^Fi
Boston Corp. (jointly); Union Securities Corp. and Sto
& Webster Securities Corp. (jointly); Lehman Broth-
Pierce, Fenner & Beane.
vote
Covt3/t5)
company
&
Sachs &
Power Corp.
it
31
stock
struction program.
* Central National Bank of Cleveland (1/25)
.Jan. 6 it was announced stockholders will on Jan.
reported
was
mined by
Underwriter—Blyth & Co., Inc., New York.
stockholders). Proceeds—For con¬
Underwriter—May be determined by
competitive bidding. Probable bidders:- The First Boston
Corp. and Coffin
& Burr, Inc. (jointly); Harriman
Ripley & Co. Inc.; Blyth & Co., Inc. and Kidder, Pea$10 (probably to
par
it
$10,000,000 of first mortgage bonds due 1985. Proceeds
For construction program. 'Underwriter — To be dete
meeting will be held Feb. 16 to approve issue). Pro¬
capital structures of affiliated banks.
ers
stockholders
sell some additional common
plans to issue and
&
Thursday, January 20, 19
.
if Hycalog, Inc., Shreveport, La. (2/1)
10, it was announced public offering of 50,000 shai
common
stock
(no par value) is planned.
Und<
writer—Keith Reed & Co., Dallas, Tex.
Tellier & Co.,
—
Jersey City, N. J.
Blyth & Co., Inc. and Kidder, Peabody & Co.
Bids—Expected to be received up to 11 a..m.
May 31.
Underwriter
1955.
expected early in
125
Corp.; Lehman Brothers;
i
.
.
(382)
sell
11
it
reported that company plans to Issue
100,000 shares of new preferred stock (parrJ
Probable
Central
was
bidders:
Harriman
Republic Co.
Inc.
Ripley
&
Co.
Inc.
(jointly); Smith, Barn
:
Volume 181
Number 5396
.
.
The Commercial and Financial Chronicle
.
(383)
Co.; Kuhn, Loeb & Co.; Glore. Forgan & Co.
Expected in April or May, 1955.
Rockland-Atlas National Bank,
Bee.
15
it
Offering—
Boston
(1/25)
held; rights to expire
on Feb. 9.
Proceeds—To increase cap¬
later.
(2/14-18)
was
reported company may be planning sale
of $5,000,000 of debentures
(with warrants). Underwriter
—Paine, Webber, Jackson & Curtis, Boston, Mass.
Southern
Dec. 30
sell
to
it
Co.
was
plans to
company
issue
and
Dean
Witter &
Co.
(jointly); Union
Securities Corp. and Equitable Securities
Corp. (jointly);
Lehman Brothers;
Morgan Stanley & Co.; Kidder, Peabody & Co., and Merrill Lynch, Pierce, Fenner & Beane.
Bids—Tentatively scheduled
for
Nov.
9.
Registration—
Not expected until Oct. 12.
17
and
it
was
reported
is planning to issue
$6,000,000 of cumulative preferred stock (par
$100). Proceeds—To prepay bank loans and for construc¬
tion program. Underwriters—To be
determined by com¬
petitive bididng. Probable bidders:
White, Weld & Co.
and Kidder,
Peabody & Co. (jointly); Lehman Brothers;
Merrill
Lynch,
Pierce,
to
are
be
Co., in
company
Fenner
&
Beane
and
Union
application for
an
issued
of
Gas
in
later this year
About
$60,000,000 of bonds wil be
White, Weld & Co.
(par
the
on
basis
&
Sons;
Co.;
Ct>.;
Stein
Mead,
Miller
George
G.
Baker,
Bros.
&
&
Co.;
Shriver
Watts
Boyce;
&" Co.;
Robert
&
under the direction of Mr. John W. Bunn of
Stifel, Nicolaus & Co.,
Inc. of St. Louis, who is the
presiding officer.
The National Committeemen will meet on
Monday, Jan. 24, at
10:00 a.m. and it is
expected their 32 affiliated organizations will
be represented at this
meeting.
On the afternoon of the 24th, the
regular Bond Traders Bowl¬
Tournament will be held.-It is expected that teams represent¬
ing
ing Cleveland, Detroit, Milwaukee, Minneapolis and New
will compete against
Chicago teams for special trophies.
York
Co.,
Inc.;
Bonds:
John D. Ohlandt, New York Hanseatic
Corporation.
Publicity: William D. O'Connor, Shelby Cullom Davis & Co.
Advertising: Irving L. Feltman, Mitchell & Co., should be
as
member.
a
from
NATIONAL
SECURITY
There will be
a
at 10 a.m., at the Hotel Sherman in
ing and
any
on
This is
an
of the
open meet¬
member of NSTA is cordially invited to attend.
receding from 101.94% to
plus accrued interest in each
par,
England Power Bds.
comprising Kuhn, Loeb
Co., Salomon Bros. & Hutzler,
Corp., and Wood,
truthers & Co., yesterday (Jan.
nion Securities
offered $25,000,000 of New
gland Power Co. first mortgage
onds, series F, 3%%, due Jan. 1,
985, at 101.931%
and
accrued
9)
to
yield
f the issue was
t
competitive sale
bid
of
3.15%.
won
be
Award
by the group
on
Jan. 18
on
used
by the
England
in part, for the
of
generating, purchasing,
transmitting and selling electric
energy in wholesale quantities to
ness
other
retail
electric companies doing a
distribution business and to
large industrial
no
residential
financing
company
purchase
to
Connecticut
the
New
England
lectric System.
The new series F bonds will be
edeemable at regular redemption
rices
ar,
ranging from
at special
and
commercial
cus¬
earnings statements
of New England Power Co. and
the
the
It has
Combined
for
of
consumers.
or
of
ubsidiary
Power
Co.,
a
corporation,
is a
subsidiary of New England Elec¬
tric System.
The company is a
public utility engaged in the busi¬
fe properties and other assets of
onnecticut River Power Co., a
ay
who
are
selling group or¬
ganized by Vance, Sanders & Co.,
the principal underwriter.
The initial
shares
of
offering of 3,250,000
Canada
104.94%
to
redemption
River Power
Co.
1953, showed total
gross operating revenues of $40,886,677 and combined net income
of
year
$4,186,728.
ended
gross
Oct.
For the
31,
operating
1954,
12
months
combined
revenues
were
$42,432,540 and combined net in¬
come
was
$6,381,279.
a
l-for-10
by
Lynch,
basis).
Proceeds—For
con¬
Underwriters—May be Dean Witter
First Trust Co. of
Lincoln, Neb. Offer¬
11
it
(4/15)
was
that date. Underwriter—Union Securities
Corp.,
New York, underwrote recent sale of Sinclair's
holdings
of Colorado Interstate Gas Co.
White, Weld &
General
be included among the bidders.
may
in
Fund
1953.
also
United
showed
Conti¬
marked
a
growth, with sales rising
$1,616,700 to $5,768,614.
The total sales of
for
1954
amounted
against
from
all the funds
to
$26,880,351
for
1953.
assets
♦
At
were
of
assets
at
the
United
end
the former Canada General
Fund,
Inc. was merged into the Canadian
of
Income
1954
were
$113,114,492,
equal
to
$17.60
a
share, compared with $72,669,668,
corporation
through
The
Merrill
Beane
objective
Fund
of
Canada
(1954)
Gen¬
Limited
is
to
and
reinvestment
of
all
net
earnings
at low tax cost.
has
become
mutual
a
completely
investment
welcome
broaden
this
opportunity
the service of
Fund
United States
(1954)
Canada
Limited
to
investors interested
We believe that the
Fund
to
retain
earnings,
with
ability of the
and
plow
little
or
back
no
tax
assets
Fund
participating in that country's
dynamic economy."
Charles A. Day Adds
Wilson has become affiliated with
A. Day & Co.,
Chas.
Inc., Wash¬
ington
STRONG
prices
the
fpur
United
assets
Total
United
assets
in
the
group
both
sales in 1954.
jumped
more
of
NET
funds
United
milljon
in
1953.
$11% million in
Sales
gained
1954, while a
gain was only
the
about $ /i million. The gains were
in
face of larger
share repur¬
chases
group
in the
than
Included
in
the
the
are
previous
United
of three
assets
mu¬
by Investors
Services,
increased
$275,000,000
during
1954.
As
of
Dec.
31,
1954,
combined
total net assets of the three
Investors
DIVIDEND
Mutual,
funds,
Investors
Inc.,
Fund, Inc., and Investors
Selective Fund, Inc., were $858,571,220 as compared with $582,997,850
total
close
the
at
of
shares
500
United
Income
Fund, United Accumulative Fund,
United
Continental
Fund
and
United Science Fund.
The
year
greatest
Common Stock
Dividend
The Board of Directors of
Central
and South West
Corporation at its
meeting held on January 19, 1955,
a
regular quarterly divi¬
of thirty-three cents
(33c)
per
share on the Corporation's
declared
dend
Common Stock.
were
in
Fund and its
periodic plan.
Sales
This
close
of
the
1954,
1953.
investors
218,700
in
of
three
is
1955.
LEROY J.
Central
SCHEUERMAN,
Secretary
and
South West
Corporation
A
owned
funds
dividend
payable February 28,
1955,
to
stockholders of record January 31,
e
Wilmington, Delaware
the
at
increase of 28,-
an
shareholders
the 190,200
reported at the end of 1953.
Net
of
assets
over
Mutual
Investors
increased $220,131,583
30.06%
over
Investors
during 1954,
1953 year-end
the
■
its
Fund, Inc., re¬
during the past year
increased
assets
82.67%
over
its
$47,670,761,
Dec.
31,
■
1953
Investors
a
1954
of
58.79% increase.
combined
Fund,'Inc.,
increase
assets
during
The
Camel, Cavalier and Winston
Selective
net
$7,771,026,
1954
increase
amounted
Gross sales of
totaled
414,
on
funds
cigarettes
,
Prince Albert
smoking tobacco
/
to
the
Quarterly Dividend
in total
$275,573,-
370, equivalent to 47.27%.
affiliated
R
a
net assets of the three funds dur¬
ing
COMPANY
Mafcers of
assets.
recorded
R. J. REYNOLDS
TOBACCO
Stock
that
ported
quarterly dividend of 60c
share has
per
been declared "on the
Common and New Class B Com¬
three I. D. S.
during
A
1954
approximately $162,573,the basis of preliminary
figures.
Redemptions
totaled $35,038,171.
1954 redemptions in the
mon
able
stocks of the
March
5,
Company,
1955
to
pay¬
stock¬
holders of record at the close of
business
February 15, 1955.
unaudited
for
gains during the
the Accumulative
members
Exchange.
NOTICES
Stock
year,.
Funds
Street
Stock
Continen¬
managed
than
more
than
during 1954, com¬
gain of about $14%
a
'before
gave
Court
Science
$11,625,439, equal
share, compared with
or $4.36 a share.
a
TOTAL
security
sales
Inc.
and
million
pared with
year
in
funds
mutual
Funds,
record
$841/2
RISE
increased
and
at
of the Boston
figure.
A
Berry Street.
were
$6.81
tual
Pierce, Fenner &
West
were
$3,396,143,
ideal vehicle
an
for
of
assets
1954
Thus,
three
of
the
funds
gross
amounted
sales;
D.
with
a
Net
open-
company,
Lynch
229
$23,902,953, equal to
share, compared with $14,819,583, or $5.82 a share.
to
asociated
a
Diversified
Commenting on the action of
directors whereby the Fund
General
or
$8.82
tal
Ind.—Gordon
now
share, against $21,726,$5.96 a share.
Net
Fund
industry of Canada,
by means of diversified holdings
of Canadian. stocks, and
through
to
$9.19
155,
exchange
an
of shares.
eral
to
is
BOSTON, Mass.—Richard B.
approximately $197,251,000.
Net
WAYNE,
Nelson
$38,258,177,
the close of 1954 total
Fund
With Merrill Lynch
FT.
(1954) Limited, at public offering or $12.05 a share a year earlier.
price of $10 a share, was com¬
Net assets of United Accumula¬
pleted last August. In November, tive Fund were $48,608,085, equal
dilution, makes it
New
Massachusetts
tomers.
101.475%.
..Net proceeds from the
ill
country
a
the long-term investment op¬
portunities which exist in Canada.
case.
nterest,
the
of
in
prices
Bankers Offer New
A group
of
"We
Monday, Jan. 24, 1.955,
Chicago.
owned
Merrill
before
J.
nental
reports that continuous public of¬
fering of its shares is now being
INC.
meeting of all National Committeemen
National Security Traders Association
Simon
on
Accumulative Fund rose to
$15,745,996, compared with $9,-
Henry T. Vance,"President, stated:
ASSOCIATION,
stores
—
reported Sinclair Oil Corp. will ask for
bids for 384,861 shares of
Westpan stock about April 15,
1955, if it has not been able to dispose of these holdings
C.
853,412
Mutual Funds
end
TRADERS
retail
program.
of the
119
page
the
Smith, Pershing & Co., should
140
•
Underwriter
Co., New
resources
Committees:
of
Westpan Hydrocarbon Co.
Dec.
&
and
Inc.
ing—Expected in January. Bonds may be sold pub¬
licly or privately, depending on market conditions.
&
long-term growth of prin¬
cipal through investments in the
Security Traders Association of New York has announced
National Committee: Harold B.
be added.
John
Garrett
seek
SECURITY TRADERS ASSOCIATION OF NEW YORK
purchase
<
& Co. and The
one
York,
members
The.Executive Council of The National Security Traders Asso¬
ciation will have their
meeting on Sunday, Jan. 23, at 1:00 p.m.
added
struction
Block & Son.
A record attendance of the
majority of 350 members and 150
out-of-town guests is expected at the annual dinner
of the Bond
Traders Club of Chicago to be held Jan. 24.
*
of
Downing
Baumgartner,
2,500,000 shares.
The
through the sale
$5,000,000 bonds to
24 it was announced
company plans to issue and
$3,000,000 first mortgage bonds due 1985 and about
40,000 additional shares of common stock (the latter to
Price—$33 per share.
Proceeds—To increase capital and
surplus. Underwriters
—Alex Brown &
Legg
to
sell
Corp.
share for each 10 shares held.
Sons;
the
stockholders
$10)
shares
Nov.
Maryland
stock
1,335,000
Western Light & Telephone
Co., Inc.
sold
100,000 additional
capital
March 15
on
Pierce Fenner & Beane, New York.
Jan. 6 stockholders of record Jan. 6
were given the right
to subscribe on or before Jan. 24 for
of
from
Gamble-Skogmo,
Underwriter—
and Stone & Webster Securities
Union Trust Co. of
(Mo.)
stockholders
shares
finance
financing during
(may be done privately).
announced that
company may raise about $10,000,000
of $5,000,000 preferred stock and
abouU$85,000,000. It is planned to offer publicly
either March or April
$10,000,000 to $12,000,000 of
preferred stock.
was
on
approving a proposal to create an issue of
of
preferred stock and $5,000,000 of
bonded debt, and on
increasing the authorized common
100,000
and replacement of bank
wil
12 it
will vote
stock
require
parts
on STANY
it Western Auto Supply Co.
Jan.
Pipe Line Corp.
iy54
in
(jointly); Kidder, Peabody & Co.;
Corp.
The First Boston
Woolen
borrowings
made
Lynch, Pierce, Fenner & Beane; Equitable Se¬
Corp.; Glore, Forgan & Co.; Kuhn, Loeb & Co.
curities
Walker, President, announced that the
1955 of
BOND TRADERS CLUB OF CHICAGO
The
Merrill
trust
a
construction program for 1955
Notes
following corrections
and
a
Nov. 24 Tom P.
construction.
Underwriter—To be determined by
competitive bidding. Probable bidders; Halsey, Stuart &
Co. Inc.; Blyth &
Co., Inc. and Salomon Bros. & Hutzler;
issue
and Lehman Brothers
of
American
made by investment dealers in all
the
to
stock
qualification
stockholders
to
Continued
NSTA
preferred
statutory merger of said American Woolen Co.
Robbins Mills, Inc., into Textron.
new
sell
of
indenture pursuant to which $21,392,595 of
15-year 5%
subordinated sinking fund debentures due Feb.
1, 1970
shares
it Southwestern Gas & Electric Co.
plans
company
Incorporated, Providence, R. I.
filed
6
Transcontinental
announced
public 500,000 additional shares of common
stock (par $5). Proceeds—To
repay bank loans and for
investment in additional stock of
subsidiary companies.
Underwriter—To be determined by competitive bid¬
ding. Probable bidders: The First Boston
Corp., Ladenburg, Thalman & Co., Carl M. Loeb, Rhoades & Co. and
Wertheim & Co.
(jointly); Blyth & Co., Inc., Bear,
Jan.
Textron
and
the
new
that
$20,000,000
year
$15,000,000 of common stock. Underwriter—Dillon, Read
& Co. Inc., New York.
(11/9)
Stearns & Co. and
reported
was
this
sell
Jan.
Sheraton Corp. of America
it
12, it
and
Underwriter—The First Boston Corp.,
New York.
13
it Texas Eastern Transmission Corp.
Jan.
5
it
was
reported company plans the sale of
$7,000,000 30-year first mortgage bonds (probably in
May, 1955). Proceeds—To retire bank loans and for
^
was
Price—To be named
ital and surplus.
it West Texas Utilities Co.
Jan.
_
stock
for each 5 14/15 shares
Dec.
(jointly); W. C. Langley & Co.; HarriRipley & Co. Inc. Offering—Expected in April or
May, 1955.
man
announced company plans
(following
split) to offer stockholders of record Jan.
25 the right to subscribe for
37,500 additional shares of
captial stock (par $10) on the basis of one new
share
2-for-l
Securities Corp.
127
to
21.6%
W. J. CONRAD,
Winston-Salem, N. C.
January 13, 1955
Secretary
*
1L3
The Commercial and Financial Chronicle
(334)
is
Continued from page 5
plain that the forthcoming
markets is
a
ly will not be an
The
jests. Mr. Truman,
smarting under the
suggestion that he should have
quit the White House for a Re¬
publican, is said to have re¬
questioning.
did you stop robbing
when
he
is
a
Liberal
as
McCarthy, who is
probably a genius at insulting
colleagues, once
publicly
called him "Senator Halfbright,"
partly
because
this
of
gratuitous jest that the Arkan¬
sas
Senator naturally has not
a
Fulbright came to be one of the
two or ihree outstanding ene¬
mies of Senator Joe McCarthy.
of social security which
from living in
derives
Federal peniten¬
is exceptional
it is believed, that is
not the attitude of the Senator
from
taught
Illinois
he
He has
for a
credits
his
all
earned
Philosophy Degree at
Doctor of
His
University of Chicago.
the
subject is on the control
thesis
expenditures, and is
problems of
of Federal
not unrelated to the
today.
in
properly to the
determination
the
of
Led Commitmennt For
Action
Collective
A
Ful¬
Senator
of
showing
bright profile, as it were, is
incomplete without listing his
background in foreign relations.
In the early 1940's, after the
United States got
into war, Sen¬
Fulbright, than a compara¬
youngster in the House,
proposed the "Fulbright resolu¬
plicitly what he says when he
Indicates that the purpose of the
securities
market study
is as
tive
much to educate himself
and the
it is to turn up any¬
public
as
thing.
The Senator and his as¬
sistants
believe
this
that
ap¬
proach of public education about
This reflected the think¬
tion."
ing of the time, which was that
if the United
States had just
joined
the
Nations
of
League
Western
backed
and
Europe.
Germany
would have been
frightened out of starting World
War
II.
what has been happening on the
securities exchanges will prove
to
be
as
welcome
the stock
to
exchanges
as
to any one else.
Mr.
the notion that after World War
II
was
won,
sional
profes¬
Committee's
staff, will have
guilt and punishing of wrong¬
tial
doing.
rities study.
join
a
substan¬
responsibility for the secu¬
Mr. Williams also
the United States
with other like-
nations
minded
Williams, as head of the
Banking
loose
a
committed the Cangress to
sense
would
Williams Assists
in
resolution
This
that
It is said
Arkansas.
he would leaves
courts
that
to
ator
means
tiaries.
no,
Prior
111.).
ex¬
probably
Congress,
by
benefiting from the unique form
!
Fulbright, with a
Senator
So
candor which
objectives, such as
showing the need for changing
the form of RFC's management.
It has been reported to this cor¬
limited
competent
sources, that had the RFC in¬
quiry been pursued more vigor¬
ously, certain individuals one¬
-time prominent in the affairs of
government, might today be
.
Provide Education
inquiries should have
respondent
V
forgotten.
he believes Congres¬
However,
But
experience in the art of govern¬
ments as legislative assistant to
Senator Paul H. Douglas
(D.,
his
ancient Liberalism that Senator
sional
Senator
to
Senator Joe
the term has
been understood for some three
is
years
political science at the
Fulbright as
"that over-educated so and so."
centuries.
It
several
Institute of Technology.
ferred
grandmother approach in
his questioning. In that sense
your
in
Williams has
of practical
Mr.
However,
had
butt of cruel
is
softreasonable in his
There is none of
and
Fulbright has been the
science."
for instance,
the
of
detach¬
misunderstood,
often
is
ment
Senator
Committee
Banking
the
Because his academic
investigation.
Chairman
new
spoken
Was Maligned
''in¬
of the securities
"study" and actual¬
in
world
a
ahead
and
plan
organization which is
the
the
for
go
now
United Nations.
In
of
the
then
Proud of the Markets We Make
been
Proud of
our
Chairman
of
the
Connally
Tom
Senator
Nevertheless, as the
have passed by, it has
(D„ Tex.).
years
and
resolution,
the
Foreign Relations Com¬
Senate
mittee,
are
Senate
the
widely known
more
the
as
"Fulbright resolution," and the
Arkansas
Representative, now
Wire Correspondents
said
tended
groups
the
to
doned and isolated conservative
legislation
which
up submerged
other
and
said 'buy'—four weeks ago you
'buy*—a fine advisor! Can't
learn to make up your mind?"
you
ago
'sell'—now you say
you
en
is customary, bore the name
as
"Six months
or¬
ganization to preserve the world
peace. In other words, this res¬
olution gave all world states¬
men confidence that they could
/A
We
Thursday, January 20, 1955
BUSINESS BUZZ
ernment, or, as it is called in
academic circles, "political
Washington...and You
vestigation"
professional student of gov¬
a
..
.
Republicans.
build
in the South and threat¬
political control southern
House, while proposing to boost
machines had
the minimum wage only 15 cents
Democratic
It looks
over
their bailiwicks.
Taft-Hartley
back
but
have
amend¬
Act
than
erage
going.
drive
avoided
such
Senator, is credited with lead¬
into
ing in the making of this fore¬
most
commitment
in national
arrangement
even
an
the
aban¬
the
a
widened
cov¬
for retail and service in¬
controversial
issue.
(This column is intended to
working
informal
with
hour—appearing
non-controversial
"Chronicle's"
views.)
own
policy.
When
New York
Eastman, Dillon & Company
Dallas
Rauscher, Pierce & Company
Chicago
First Securities Co.
San Francisco
J. Barth & Co.
young
man
a
outstanding
reputation for leadership in a
given field, he often tends to
hold tenaciously to this same
The
public life.
In
this respect
the totally dissimi¬
lar records and personalities of
conflicting
the
Lexington
in public
life acquires an
field in his later
Kentucky Company
Senators
Mc¬
Carl Marks
Carthy and Fulbright are para¬
doxically alike.
Senator Mc¬
Carthy has been inclined to
in
himself
interest
little
FOREIGN
but
Clark, Landstreet & Kirkpatrick
50 BROAD STREET
Louisville
The
Houston
Rauscher, Pierce & Company
Kansas City
H. O. Peet & Co.
San Antonio
Rauscher, Pierce & Company
by overhead.
Los
J. Barth & Co.
70
Kentucky Company
•
Co. Inc.
SPECIALISTS
NEW YORK 4, N. Y.
HANOVER 2-0050
TELETYPE NY
1-971
'
V:
Jet Fuel Use is Large
J
Figures revealed here indicate
the use of jet fuel by the
that
military is by no means as in¬
significant
a
quatity
as
one
would
flock
We recommend at the market
gather
sional
Last year
Angeles
TEL:
anything but
prompting collective action.
in
Fulbright
&
SECURITIES
Communist-hunting; Senator
Nashville
million
from the occas¬
of jets which fly
the military bought
gallons of this fuel,
W. L. MAXSON CORPORATION
CAPITAL STOCK
CAPITALIZATION: 330,397 shares Capital
with
three million
gallons of gasoline used a day
on
all accounts, air, water and
Stock
compared
Milwaukee
Paine, Webber, Jackson & Curtis
This is
quickly through
any
There
of the above
a
unlikely be even
semblance of the old Repub¬
coalition
Truman
on
SCHERCK, RICHTER COMPANY
Member Midwest Stock
Bell
Teletype
SL456
St.
Louis
2,
Mo.
Democratic
$3,229,917
on
the
wages
public
coverage
and
housing,
GArfield 1-0225
L.D.123
The much
2.26
526,494
1.82
1953
34,377,128
1,085,502
3.54
1954
37,143,000
1,496,000
4.53
of
•On an increasing
number of shares yearly due to stock dividends
Trading Market for Brokers and Dealers
the
LERNER & GO.
over-publicized
"coalition" worked
the Taft-Hartley
ployment
$0.81
15,923,380
perhaps
in
$211,364
614,012
1952
and
days this year, except
perhaps
minimum
also
Roosevelt
the
•Earnings
per share
1951
view of seasoned observers.
Exchange
320 N. 4th St.
of
Net Earnings
Sales
will
lican-conservative
Correspondents
GROWTH Company (Electronics)
1950
Ike Avoids Coalition Revival
us
real
7,453,985
land, in the United States.
Check
a
best against
Act, fair
practices
em¬
legislation,
10
Post Office
re¬
flect the "behind the scene" inter¬
pretation from the nation's Capital
and may or may not coincide with
Democrats
conservative
an
dustries—a
things as
FEPC proposal which would
fically
though the White
—will drive for
anything
tough
90 cents
superficially
sweeping
Other
T-H, the President speci¬
ments
will
an
to
to
threatens
Eisenhower
Mr.
as
Square, Boston, Mass.
Telephone HUbbard 2-1990
Teletype BS-69
@FedFRASER