Full text of Commercial and Financial Chronicle : January 22, 1953, Vol. 177, No. 5188, Section 1

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A1NNUAL REVIEW AND OUTLOOK ISSUE

Volume 177

Number 5188

New York

MSINiSS

In 2 Sections

7, N. Y., Thursday, January 22, 1958

Price

$1.50

a

Copy

MMimiJUJimi

umir
EDITORIAL

President Eisenhower's

We See It

As

Inaugural Address

The Year Ahead
This is certain to be

New Chief Executive comments

eventful year.

an

It

of the next 12 months.

course

the

eventfulness

of

found in the fact that the
to

the

In such

faith in the

course

Gen. Dwight D.

mon sense

in the management
our

ardent

of affairs refused

under way.

of

hope

.

34th

Eisenhower,

the

year

got

The world and

we

faculties

that

forces

state of business will

occur.

The

have
view

citizen

in

page

the

of

act

:

We

Since

this

*

the

upon

Masses

of

Asia

wakened

a
I

our

secure

a

country, it has been

a

peace

in the world,

With

We

White

and of

and

we

Continued

on

page

low prices
on

of

House

Senate,

Yet

we

and

we

Irving M. Ives

Eisenhower

the

in

Republican majorities
look

can

policies

forward to

of the

New

Deal

in the House

reversal of the

a

Administrations.

should bear in mind that this change at the helm

Continued

67

on

page

26

show monthly high

stock and bond issue in which dealings

every

the

we

General

vacillating

have had to fight through

Argonne, to the shores of Iwo Jima,

87

occurred

Halls of Congress.

time of recurring

summit unmatched in man's history. Seeking to

forest of the

the

the
ever

bilities
this
victory
imposes; re¬
sponsibilities
which
have
been
placed on the shoulders of the Chief
Executive and the legislators in the

We have grown in power and in responsibility.

to

Administration. At
however, I am

time,

mindful of the tremendous responsi¬

have passed through the anxieties of depression
war

people have given to the

incoming

to

bloodiest wars. Thrones have toppled
empires have disappeared. New nations

own

the

of

Great nations of Europe

have been born.
For

member

American

same

have waged their

trial.

Republican

a

Senate, I am justifiably proud of the
overwhelming vote of confidence the

beginning,

have

which

traverse over the coming years.

As

century's

Congress will chart the
the country will

Republican
course

has seemed to come
continents of the earth.

strike off shackles of the past.

and

DEALERS

Party. For the first time in 20 years,
a
Republican Administration and a

are

the Continents

on

of

herewith:

lowing two decades of Democratic Party rule, the Amercan people have now placed the reigns of Government
in
the
hands
of
the
Republican

one

•

Tempest

up-to-

This new year of 1953, inaugurates a change of major
proportions in the political destiny of the nation. Fol¬

of

people, to give testimony,
sight of the world, to our

SECOND SECTION of today's ANNUAL REVIEW ISSUE

In the

/

•

meaning/

time of tempest

vast

reader with

the

to the indicated course

as

U. S. Senator from New York

as a

the

A

their

propide

views

HON. IRVING M. IVES

massed and
rarely before

the

than

more

the free. ;

and

These forecasts, written especially

a

faith that the future shall belong to

Eisenhower

government

of

probable trend of business

to the

as

CHRONICLE,

the

our

swearing his oath of service,

called,

given expression to the almost unanimous
that factors are present which make a
on

as

in the presence of his God.

D.

opinions

are

defines

fact

of

with all

sense

and evil

good

witness

D.

financiers

the-minute official

this day. We are summoned, by this
honored and historic ceremony, to

this time to

Continued

of

This

outgoing Presi¬

seem

and

for

have passed the midway point

gets

up so

individual

the

business in all industries. The statements begin

armed and opposed
in history.:
<

.

.

ISSUE

in the current year.

and

follows:

century of continuing challenge.; We

.

dent and his economic advisers

inaugu¬

States

My fellow citizens:

much momentum, we
have before us such large commitments in the
form of defense operations and foreign aid prom¬
ises, and we have got up such a head of optimism
and confidence in light of the political develop¬
ments of the year, that it would appear about as
certain as such things can be that some time will
elapse before any great decline in the general
now

was

United

The text of the inaugural address

History, we believe, will accord this year of
our Lord, 1953, a
high rating, or will refuse to
do so, depending in large part not upon the degree
of activity in business, but rather upon the suc¬
cess we have in
getting our house in order and
thus setting up good defenses against one of those
''depressions" which are so likely (or should we
say, certain?) to follow artificial "booms."
We have

Jan. 20,

the

custom of former years, the CHRON¬

in today's ANNUAL REVIEW AND OUT¬

officials and of the country's leading industrialists, hank¬

delivered the customary inaugural address.

t

\

LOOK

fathers.

our

on

of

President

affairs. At

our

as

the

rated

a

all events this is

abiding creed of

our

ICLE features

ers

a

period would be

kind of treatment not administered
for two decades or more and heretofore by many
believed to be the cure of many of our ills.
For
our
part, we do not expect this latter eventuality,
but rather a beginning in the march back to com¬
yield to

Continuing

us at home and which involve all human kind,
lays down nine principles to guide nation in its
labor for world peace. Says we must proclaim anew our

and

destined for that role even if a new and
radically different Administration is unable to
accomplish what it and its friends hope to achieve
in the

After Turn of the Year

preoccupations that

on

absorb

ap¬

pears

case

Business and Finance Speaks

New York Stock Exchange during 1952.

State and

m

WESTERN

U. S. Government,
State and

Municipal

Securities
telephone:

Municipal

OIL & MINING

Pacific Coast &

Bonds

SECURITIES

Hawaiian Securities

HAnover 2-3700
Direct Private Wires

Chemical
BANK & TRUST

Bond Department

Dean Witter
14 Wall

Co.

&

Street, New York, N. Y.

THE NATIONAL CITY BANK

J. A. H0GLE & CO.
ESTABLISHED

1915

CHASE

THE

'

COMPANY

and Security Exchanges

BOND DEPARTMENT

30 BROAD

ST.. N.Y

Members of All Principal

OF NEW YORK

Principal Commodity

Members of

50 BROADWAY

•

Exchanges

NEW YORK CITY

Denver
Spokane

Salt Lake City
San Franeiseo

Los Angeles

•

Boston

•

•

Chicago

Bond

Honolulu

Los

Dept. Teletype: NY 1-708

Angeles
and

10 other Western

BANK

NATIONAL
OP THE CITY

OF NEW YORK

Cities

Steep Rock

STOCK and BOND

T. L. WATSON & CO.
established

Iron

Mines, Ltd.

Sun Life Assurance

BROKERAGE SERVICE

Members

New

CANADIAN

Central Maine

BONDS & STOCKS

Power Co.

1832

York Stock Exchange

Albercan Oils

American Stock Exchange

COMMON

Commodity Exchange, Inc.
New

and Dealers

for Banks, Brokers

New York 4, N. Y.

Telephone WHitehall 4-6500
.

Teletype NY 1-1843

Exchange
Members American Stock Exchange
Members Mew York Stock

30 Broad St.
Tel. DIgby 4-7800

New York 4
r-le




NY 1-733

Net

To Dealers,

SO Broadway,

Hardy & Co.

York

<s>
BRIDGEPORT

Markets

Maintained

Analysis

Brokers and Banks

CANADIAN

Pomcuox Securities

DEPARTMENT

Goodbody
ESTABLISHED

a

Co.

6RP0RATIO7I

1891

PERTH AMBOY

115 BROADWAY

NEW YORK

40 Exchange Place, New York S.N.Y,

1 NORTH LA SALLE ST.
•

*

CHICAGO

>

New

WHitehall 4-8161

York

Exchange
Exchanges

Stock

other Principal

111 Broadway, N. Y.
WOrth 4-6000

Teletype NY 1-702-3

request

ira haupt & co.
Members
and

MEMBERS NEW YORK STOCK EXCH.

upon

6

Teletype NY 1 -2708

.Boston Telephone:

Enterprise 1820

2

The Commercial and Financial C-

(282)

The

Security I Like Best

This

A continuous forum in which, each week,

participate and give their

and

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

for favoring

reasons

they

are

Companies

be regarded,

to

as an

offer

C. LUITWEILER

83rd Consecutive

Quarterly

Thp onlv rertlin

!n hf noSl
a

n

is

New York Hanseatic

that
that

tinued

f

economk and

1920

"to
to

Exchange

120 Broadway, New York

5

Price

Inv

of

'

-

YORK

5

2-7815

lilJlIllillllllllllllllllllllllllllllllJIIII'

Trading Markets
1

Dan River Mills

In

choosing

$4.44

$5.36

4.36

6.01

4.79

Westinghouse

4.95

5.36

4.03

investment

the

dominant

in

1953

these

are

considerations:

.

than from
inflationary spiral.
wage levels

business

A

supplying

there

the

market

at

are

(5)

A

a

who

many

and

Penobscot

DETROIT
Branch

Building

26, MICH

Office—Bay City,

Mich.

seems

Members
New

*

Stock

York

Exchange

Stock

Exchange

New

Cotton

Exchange

York

Commodity
Chicago
New

Exchange,
Board

Orleans
And

-

of

Cotton

other

Inc.

machinery,

delivery,

to meet

Exchanges

steam

which

spe¬

takes

and

Exchange Bldg.

CHICAGO

DETROIT

PITTSBURGH

GENEVA, SWITZERLAND




also

150

N.

Y.

Security Dealers Assn.

Broadway

Now York 7

Tel. DIgby 9-1550

Tel. NY 1-1932

has

1, 1956 at $27.50 per share; there¬

levels,

while

after

$5,000

stock

sold

39 xk

at

much

lower

value

of $25 per share,

with

earnings and

$5

book

while to¬

share

per

a

with

earnings

book value of around 42,

a

it

BALTIMORE TRANSIT

COMPANY
Recapitalization Plan
—

t

at

a par

turbines, electric

general

a

favored

gen¬

shares

this

of

preferred

to

get

Memo

J. V. MANGANARO CO.

This

50 Broad Street

privilege gives preferred shares a
value of .approximately 58 when
is 32; over

common

Request

use

approximately

182 common shares at $27.50.

the

on

stock,

value of $5,000, can

New York

70 if the

4,;N. Y.

Telephone

Teletype

HA 2-3878/9/80

NY 1-2976

rises to 40.

common

Exchange

over

The

since 1905.

Westinghouse, but it has managed
to hold its

own

standing,

Its sales have increased

eight-fold

and grow notwith-

since

since

prewar

the

of

end

years;

World

Company,

a

tion"

under

cne-half times its

^esp*te rec0J;d ^tes last year,
lne nf
log
of unfilled orders in

$33,000,000,
production.

I

almost

,

a

excess

full

of

year's

of

g-.

the

able

high

ten

and

(with

as

of

computed above) pur¬
million cash 94%

to

and

common

the

York

It

rather
B. K. Thurlow

with

one

banks

to

unusual

order

in

conclude

generosity
that

the

sion

which

produce spectacular capital
gains from these levels irrespeccourse

of other stocks

*

in general.

•

some

to

a

was

able to

amount
are

explain

may

of

from

sheet.)

why

per

figure?
1952 .balance
assets. $141; total

Nov.

Total

(All

1,

the

"all-beef

for

1953

frankfur-

easily
top $350,000,000, but at its present
may

taled$m^
million.

iion5

This adds up to $356 mil-

about $1,424 per share. In
price of 24, 100% of the common only one out of the past ten years
stock could be bought for $6,000,-

over

there

250,000

Members

shares

only

a

little

outstanding.

and

Exchange

American Stock

Exchange

Principal Commodity Exchanges

14 Wall St./N.Y. 5

KErtor 2-4900

*

N. Q. B.
OVER-THE-COUNTER
INDUSTRIAL STOCK INDEX
12-Year Performance of
35 Industrial Stocks
POLDER

ON

REQUEST

or

(1949) has Hygrade operated at
loss.

are

Established 1872

New York Stock

Hygrade
a large

borrow such
money.

liabilities,
including
reserves,
country's fifth largest $70.80; book value. $70.20: net mrpacker;
a
concern
well- rent assets, $31.40; long-term debt,
known to housewives as the man- $7.48.
•
ufacurer of "Honey Brand" orodKingan's net sales in 1951
to-

000;

*

share basis for easier comprehen-

The company is Hygrade Foods,

for

'

of the company's

meat

Sales

'

Kingan, or both, must be substana
year tially lower than those of the. prohigher fessional financiers.

features

unusual

the

Orvis Brothers & G>.

leads

public

as a group more

A look at

Principal Cities

to

market's valuations of Hygrade or

of

unchanged from
have selected
a

and

In

was

million from

certain

ucts

Offices and Correspondents

and

one

size.

own

$7.3

the

of

.Kingan

competitor

borrow

New

82%

of

recent statistics reduced

now

Commodity Futures

a

$7.9

consummate the transactions. This

could

,

and

chased for $6.4

priced stock which in my opinion
has all the volatility of a typical
low-priced issue
together with

ter."

The outlook for 1953 is promis-

/Last October, Hygrade
market
valuation

specula¬

less

spectacular

a

total

term

status

may

Exchange.

stock

n

Investment Securities

derive

which

the American Stock

on

preferred

o

It may be classed ;tive of the

pigmy alongside its giant
competitors, General Electric and

this company

make

them

from

features

"1

ag0<

a

because

salient

for

0r

every

the

performer

low-priced stocks

for

mind

as

margin req u irements.

paid annual

uninterruptedly

low-

Brokers in

proximately $1,900,000. These basic
are important to bear in

figures

million

taxes

com¬

existence

50 years and has

dividends
year

in

choose

In addition, the company has out¬
standing long-term debt of ap¬

as
to
why
they were a
logical vehicle

today's

one can

been

have'

the first

On

I

I

expressing

reasons

the

has

time

of

this forum.

in

ber of

of wide-scale

process

•

stocks

dustries

pany

privilege

occasions

Today,

in

the fourth

is

the

category, adducing a num-

is

wage

War II.

NEW YORK 4, N. Y.

Elliott's

this

engine manufacturers, the chemi¬
cal industry and other large 'in¬

doubled

N. Y. Cotton

Note:

with

three

favored by
levels,
Company's main products

price

Trade

Exchange

Members

convertible preferred stock

"blue

the

of

be significant that at the
preceding market peak (1946)

This

a single
horse-power to 25,000 hp.; turbo
chargers essential for four-cycle
diesel engines (it is the country's
leading producer of this equip¬
ment) ; and many other items sup¬
plied to the utility industry, diesel

as

American

5%

It may

priced

indeed well intrenched.

H. Hentz & Co.

Editor's
a

Members New York Stock

judge a business by the quality of its customers, Elliott's are the "Blue Book"
of American industry.
Elliott's place in this industry is

1856

Gersten & Frenkel

maintained.

last

ideas in

Company

expansion. If

Established

Common

jror the past two years the price
has been hovering in the high 20s

,

BRADBURY K. THURLOW

erators, and motors from

Stock Exchange

Detroit

Missouri Pacific R. R.

selling in the low 30s!

Partner, Talmage & Co., N. Y. City

months between the order

its

are

Exchange

Film "A"

5.00
4.50

higher prices. In simple
terms, that means a holder of 100

and

company

Elliott

Elliott

Members:

is

Rights

$5.00
'

fully valued

students

feel

price

present

day

of this year.

stable

Moreland & Co.

Consumers Power

government controls.

■v

Request

offices

General Aniline &

sound

catering to customers
whose
patronage
is
assured
throughout the year.
(4) A company that can benefit
by removal of price and other

Any business that designs

Darling Co.

branch

1952

outstanding, now around 58%. The
dividend is covered by present
earnings more than seven times.
Moreover, this stock is convertible
into common stock through April

many

may now be

Elliott's

and

cialized

10 51

in-

to

secondary issues have been
neglected and are under-valued.

upward

an

But

chips"

(1) A business that will benefit
more
from
stable, or declining,
raw
material prices and
stable

these tests.

Midwest Stock

Elliott's stock

electric industry of General Electrie and
Westinghouse
warrant
their popular favor with investors,

had

on

1951

$6.85

of the Excess Profits Tax in June

Market

1950

3.88

Lynchburg, Va.

L. A.

1949

4.29

made

our

Common &

1.948

$7.14

not

to

Est.

Earnings per Share

Yield

6.6%

is

wires

five

be in-

may

4.3%

whose stock¬
holders would profit by expiration

Industrial Brownhoist

Direct

teres'ting:

4.3%

Hygrade Foods

i

respective share price

2.00

comparison

security favored

a

for

llllllllllllllllllllllllllllllllllllllllllll

t

last

47

Scott, Horner &.
Mason, Inc.
LD 33

the

of

2.10

El.

NY 1-1557

Birmingham, Ala<
Mobile, Ala.

were

businesses while probably highly
stimulating to others.

(3)

Moore Handley Hardware Co.

tabulation

3.00

shows

St., New York 4, N. Y.

HAnover 2 0700

New Orleans, La. -

competition

32

table

Exchange
Exchange

years' earnings in relation to the

—1952—
Div.

Stock
Stock

for

good

ucts

Tele. LY 62

tive

materials, to which Elsubject, are on their
Price

the

to

York

American

25 Broad

and oniy at the close of the year
approximately
the
same. did jt break into the 30s. It would
Moreover, this relationship has seem reasonable to suppose that it
existed over the past five years would sell for its full book value
price and earnings record. The if its present rate of earnings is

James C. Luitweiler

misgiv¬

steady demand for essential prod¬

Gas Co.

of

stockholders

Reverting

New

Members

with General Electric and Westinghouse the following compara-

government

priced at half General Electrie's and two-thirds of Westinghouse's, while last year's earnings

characteristics.

Commonwealth Natural

the

en-

to be

A business well intrenched
in its field with definite growth

Natural Gas Co.

ex-

,64%.

70

This

(2)

Alabama-Tennessee

*

an

the country as a dicate that Elliott's common stock
whole cannot gainsay it will have is under-valued to
that extent,
unfavorable
effects
upon
some The size
and dominance in the

Members

took

taxes

Elliott Company
General
Electric-

stors

e

such

t

be

Mc ppNNELL & Co.
REctor

and

_

ings,
with
confidence, or enthusiasm depending
upon
temperament.
Those
who are convinced the change will

Since 1917

New York Stock Exchange
American Stock Exchange

wonder

Current

right"

e w

o u

Rights & Scrip

Tel.

Small

Company

prospect with-

Specialists in

profits

cess

liott has been

evidently
vi

in 1951 normal and

road."

the

NEW

controls

control of

of

"middle

or

Teletype NY 1-583

BROADWAY,

expansion.

backlog of approximately
tire year's output.

regime

a

"to the

Steiner, Rouse & Co.

.

.

;

Members

out

way

ing these industries, has a present

left"

the

,1

rail-

entire

our

governme n t

Associate Member

120

of

y;

*'

then that-Elliott Company, serv-

of

years

H®®
'

and steadily growing with
expanding use of electricity.

itable- The chemical industry has earnings away fTbm;'ltsit)bckholdthe most ambitious plans for con- ers-about twice whaHt left to

it

change from

a

Corporation

k
is

This

result

20

Stock

nor

sell the securities discussed.)

to

Dieselization

inevit¬

the

able

Established,

be,

to

perous

nrediction that
1W
1953

rial

n

realms.

•

Louisiana Securities

Partner,

Bendix, LuitPartner, Bendix, Luitweiler & Co., New York City.
(Page 2)

*

road industry in time seems inev-

can

request

on

intended

not

are

the

Elliott Company

ol LrrLffor
be made for

Comparison

BArclay 7-5660

weiler,

,.

A tsmsti

Partner, Bendix, Luitweiler & Co.,
New York City
Members New York Stock Exchange

American

Alabama &

Company—James C. Luit-

Bought—Sold—Quoted
JAMES

of New York

Available

Elliott

Wener,

(The articles contained in this forum

Trust

particular security.

a

Week's

Participants and
Their Selections'^

"A''

in the investment and advisory

Thursday, January 22, 1953

Forum

■

Leading Banks

nnicle...

In

the other years

a

reported

National Quotation Bureau
Incorporated

46 Front Street

Continued

on

page

19

New York 4, N. Y.

Number 5188

Volume 177

...

The Commercial and Financial Chronicle

(283)

Time of Decision
*

y

'

*

■

SEC Abolition advocated.

•

.

.

♦

"Business and iFinance

f

jthe Securities and ^Exchange*Commis¬
sion,' the controversial issue of "to "be or not to be" has *
been .focused .into the .forefront -by the change of Federal
We believe it is this which ,caused Donald C.

—A. Wilfred May.

Cook,

j—,

Exchange Act of 1934)

Commission would be

a

mistake.

Said he:

with

it would be like deciding to eliminate .crime"

* ,*

.

*

—Charles E. Young,
Water StoOks-^Ira'U.

by the SEC

to be seriously tampered

were

by removing the laws defining crimes from our statute
disbanding our police force. This sounds ridic¬
ulous, but I 'believe the analogy to be apt." It not only
"sounds ridiculous," Mr. Chairman, but it is ridiculous to
our way of
thinking. - We can only hope that the new
Administration will take no stock in such an "analogy."

bettell——-_1_r

99 WALL

9 *

STREET,.NEW YORK

.Telephone: WHitehail 4-6551

Douglas. C. Abbott,. 10

Cycles, and Imbalances Affecting the 1953 Outlook

"If the laws

administered

Obsolete Securities Dept.

7

Canada Looks atiProblems<of *1953—Hon.

can

obsoletes!

——6

_*

Uneasy Prosperity—Richard Qlenn

stand revision,'but coil-;v
any attempt to reduce the powers of the^

tended -that

thaw .yiMir

.

-

designate) —J

/.

'let our-ddllars

.

5

•_

—a..

"The Uneasy .Triangle"—-Charles E. Wilson (.Secy, of Defense-

iHe admitted that both Acts (the Securities Act of 1933

.

and Jthe

1

Some Aspects of Negotiated Securities Matkets
—Donald G. Cook,

'

Chairman of the SEC, to venture the opinion at the recent dinner ofrthe. New York Security Dealers Association that
an Elimination of the Securities Acts would be misdirected. *
...

FROZEN ASSETS

4

Washington's "Morning After";—Is the Honeymoon. Off?

f

*■

AND COMPANY

(Per¬

A New Look at "Foreign Aid—Eugene R. Black-——

Administration.
•

Speaks After the Turn of Year"

andjeaders in Trade,
Industry .and iFinancfr on.the economic outlobkf or 1953) Cover

;

With respect to

/

B. S.

Page

sonal views of * Government Officials

.

'

4

.

Articles and News

Unusual

opportunity'for relief from*.autocratic regulation presented to
?new Administration.
'
-

♦

j

.

_

•

Grievances enumerated.

3

—'

:

11

Cdbleigh

12

Cinerama, Inc.

Our Prime Objective in Labor-Management Field
—£>en.

H.

Alexander

Smith,,

w___

Stock Market-ProspeGts—'Roger W. Babson

13

14

Great American

15

Industries

-

books and

<Our

Stock Market in for Wider Technical" Swings—
-

-^George R. Payne—__

17

*

Gulf

+

•

A Favorable Outlook for

reaction as.evidenced

own

P! Sloan, Jr.

Road to Serfdom Blocked—Alfred

by our editorial policy
the years is unmistakable. We favor the abolition of ;
the SEC. We advocate the repeal of the Securities Acts >

Investment^Banking—Ralph Owen

19

The/1953'Business and Stock Market1 Outlook—G. M. Loeb

21

Sulphur*

Haile Mines

-

;

over

President ^Eisenhower's
Time of 'Decision

arid the enactment of sensible definitive

legislation as a '
substitute for what now, contrary tomur American philos- /• ;
ophy, provides for government by men instead of govern- !vmerit by law.
*
<
1

(Editorial)

harmony With trade custom,}so that

by fthe Attorney ^General
for-price fixing is completely erased. ,
\
;

BUSINESS

5

j

^Prospectus

3

_

"•

reguest

,on

FINANCE

AND

'

*

„

>

^

SPEAKS

AFTER

J.F.ReiUv&Co.

THE

"

Lncorporated

TURN OF THE YEAR
'61

the'coverspage qf today's ANNUAL CREYIEW
AND OUTLOOK ISSUE we present the opinions
/of
: leaders in Government, Industry and Finance regarding

Starting

.

.nV.;';/-'

v

^

_ _

j

r-

Among other things this legislation, as to new issues, I
should declare; the propriety of price maintenance during ;
the life
the^inderwriting syndicate aright through to the the continuous threat of action

Cover

Working Capital »Problem ^Underscored----

..

Ultimate investor in

Address

Inaugural

on

BO 9-5133

-

.

-Teletype NY

,

1-3370?

A Direct Wires
Philadelphia

the outlook for'business in 1953.

\

Broadway,"New York 6

'

■

Saii

;

Los Angeles

•

Francisco

In the SECOND SECTION of today's issue will be found

Id this time of decision

as the New Deal sings its swan t
>r qh^usual tabular record of the high and low prices, "by
after 20, years of playing hob with the securities *;v
of every stock and bond issue in which dealings
industry, and hope for remedial action has at last emerged,,
occurred on the New York Stock Exchange during 1952.
we-cleem it expedient and in the public-interest to restate *
some of our -reasons for opposing the existence of the SEC. r
^
Regular Features
,
: :
We believe it to be basic that the common law supple:idAs We See ;lt (Editorial)—^—
-Cover
ihehted iiy regulatory supervision imposed by purely vol-V
Bank and Insurance Stocks,
24
uritary securities organizations can be wholly adequate to r
Business Maii?s IBookshCilf
-104
protect the,interest of the public and to maintain the securities business on a respected ethical plane.
^
Canadian Securities

song

.

Associated
:

~

-

v

f

.

Development

#nd .Research Corp.
Brown Allen Chemical

'

/We believe that underwriters, .brokers and dealers as *
are honorable men. In our view, itis wrong to treat ;fc

Coming Events in Investment Field

class

a

them

were knaves and to saddle them with v
onerous'burdens because there may be' a few ;
on the
"fringe."
'
"

:
so

are

U.

'Weyerhauser Timber

8

—______

From

•

Singer, Bean

14

Washington Ahead of the News—Carlisle Bargeron,

Indications of Current ^Business Activity--

Their

available to them.

96

'

Mutual

•

&

*

S

Funds

—

22

—

MACKIE, Inc;

HA 2-0270
-

16

News About Banks, and Bankers—

:

^

•

r-

.

product, securities, is merchandise, should be
treated, and ordinary merchandising methods should be

Airlines

S.

■'Einzig—"The Dollar Problem and Raw Materials Prices"-,,,13

numerous

who

'

8

-Dealer-Broker ^Investment Recommendations,

;

though they

as

'Cinerama, Inc.

.

.

40

Exchange PL, N. Y. 5

Teletype NY 1-1825.&.NY 1-1826

'

Contrary to present provisions of existing laws and
the rules of existing

'Observations—A. Wilfred May.——5
^Our Reporter's Report---—

regulatory bodies, neither prices nor

profits should be controlled. These should find their levelc
in

a

competitive market based on^supply and demand.
We believe

the

Our Reporter

*

makes

1 serves,

distinction between speculation,

no

Which

Public Utility Securities

——100

'

.Securities

unhealthy 1

The
'

Corner,-J—.—

Security il sLike .Rest—j

—___

98

—

2

—-—

The January issue of our
timoly s u*rve y assesses
business prospects for the
new
year,
together with

4

-r—-

20

(Walter Whyte Says)

Tomorrow's Markets

OUTLOOK

18

Now in Registration j

The State of Trade and Industry

reporting of transactions, mandatory regis-,

SECURITIES

t>5

——

—

—

83

Security" Salesman's

-

markets that have worked to the detriment of all.

Exhaustive

25

_c_.-——

Railroad;Securities

.

a-desirable -economic function, and manipulation. ;•

This lack of distinction has made for thin and

__102

Governments

^Prospective Security Offerings.

manipulation of stock prices is inimical to

public finterest. However, present legislation and SEC \

rules

on

selected

a

^

employees, periodic/filing of financial

tration and control of

and records in

statements, visitation to examine 'books

Continued

cn

page

.Washington.and

'-'See article "Canada Looks at Problems of 1953"

;

103

■'———

-v'-:-'

Twice

haTe

specialized An
-

i

-

-

j

•

.

_

Pi

^

Beg. tJ. S. Patent Office

,

a

Spencer
"i* '

.

■

Private Wire to
'

>

-

-

•

NashviLe

...

Eng-

Reentered

as

possibilities
h

c

a

month

in¬

for
our

in

Department dis¬
this publication

topics

of

special interest,

to.

serious -rminded

vestors.

in-

j

second-class matter Pebru-

'

Chicago
•

'f^tt-

-GJens Falls

-•

Schenectady

,

r

Worcester

•

CROWELL, WEEDON & CO.
'

;

r

-

Thursday, .January ^?2,

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1879.

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Other'Offices:

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Every Thursday Lgeneral news and ad'vertising issue) and every Monday (complcte statistical issue—market
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'
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1.03 ANGELES, CALIFORNIA




7, N. Y.

NeW Yoik

^

WILLi;\M DANA SEIBERT, President

»

ST., TEW YORK 4, *N. Y.

Boston
•,

Gardens, London, E. C.,

Drapers'

securi¬

cusses

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'HERBERT »D.*SEIBERT,. Editor & Publisher

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Copyright 19,53 by William B. Dana
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with

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land, c/o Edwards & Smith.

FINANCIAL^CHRONICLE

WILLI \M B.

25 BROAD

10.

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—^
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on page

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Weekly

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For many years
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$30.00 per year. (foreign postage extra.)
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"WALKERIAN"

4

The Commercial and Financial Chronicle

(284)

A New Look at Foreign

Aid

By EUGENE R. BLACK*

which
would weaken incentives of recipient nations to build up their
economies. Says much has been accomplished by foreign aid,
but "dollar gap" has not been overcome. Holds undeveloped
countries should not be aided, unless their political leaders con¬
centrate on mobilizing their own economic resources. Warns
government loans should not be gifts and opposes giving longAdvocates U. S. "throw open

loans at low interest rates.

term

her markets to

Let

The

threat

of

further

aggression
by international Communism must,
the present, be the first con¬

for

of the United

the free

of

rest

States and the

world.

time

—a

moment

We

must

that

also is of deep

significance
the

of
A

whole

the

for

world.

captain
is taking com¬

field

in

Bank

and

new

mand

American ship
state.

of

New

both

World

the

American

the

govern¬

haven

best be conducted in the common
ship is
cause.
seeking may
perhaps be the same as before. But
Fifty-four countries are mem¬
will the course and speed stay un¬ bers and stockholders of the Bank.
If tonight I occasionally seem to
changed?

be

a

is

inevitable that there will

new

♦Address

look at the charts—and
by

of America's contribu¬

scope

joint defense effort.

I

do

are

Eugene R. Black

the

It

and

tion to this

the

normal

Its

sense.

amount

It is now,

bridge and the
engine room.
The

defense must be carried. The shar¬

should be determined by criteria
in this moment of tran¬
sition, that I think I can most ap¬ quite different from those used in
propriately offer some personal determining what kind of a for¬
views about how operations might eign aid program there should be.

the

man

which

tions where anomalies have arisen.

personalities
will

review.

under

come

believe, however, that what we
operating. Our business
contribute to the common defense
constantly brings us together. Most
should
not be
regarded, either
often, we meet in cooperation; but
there inevitably have been situa¬ here or abroad, as foreign aid in
ment

the

of

to

Fresh
minds, fresh ideas, fresh ing of that burden with our al¬
lies is obviously a proper instru¬
techniques will be brought to bear,
in a new attempt to meet those ment of United States policy.
I have neither the knowledge
seemingly
intractable
problems
nor
the professional competence
we inherit at the mid-century.
to express a view about the size
International
economics
is
a

of

change in this"
country

certain

transition

of

Mr.

before the
Economic Club of New York, New York
City, Jan. 14, 1953r~
Black

discard

all but

one

of the 54 hats

that -have been given me to wear,
and speak to you as an American,
I

trust

will

that

forgive

my
me.

It should not be in

a

form which

would encourage the recipients to
look on it as a permanent and

major prop to their economies anch>
which would weaken their incen¬
tive to take action of their
build

a

own

to

stable base.

more

For my

part, I see the continu¬
other 53 hatters ing purpose of American economic
For I have the policy in something like the fol¬
lowing terms; It aims at building
up a world economic system based

■

\

#

Underwriters

on

steadily

of

living

increasing

here

and

standards

abroad.

It

and

nondiscriminatory
trade; and second, by increasing
the productivity of underdevel¬

oped

countries

and

the

standard

of

living of their peoples.
instruments,
supplementing private investment,
What have been the

State, Municipal

which the American Government
has used to achieve this long-

and Revenue Bonds

term

objective?

For

Europe, there has been the

Marshall
For

Plan.

the

underdeveloped world,

the official American position has
been that Point Four and loans
from

LEHMAN BROTHERS
NewYork

Los

Angeles

existing institutions engaged
international
lending would

in

Chicago

provide

the assistance needed

raise

productivity

and

to

living

standards.
How

Far Has

Foreign Aid

How far have these instruments
taken
So

us

toward the objective?

far

Europe is concerned,
you
only need to compare the
situation of today with that of

.

Boston Stock

'

of

MUNICIPAL

AND

ports

are

war.

Inflationary

SECURITIES
PAPER
*

•

BOSTON

•

CHICAGO

WORCESTER




•
•

benefits moved ahead
ago

slightly but remained well below the

ment, dollar balance had not been
restored. Europe was still unable
to purchase supplies of great im¬
portance to her economy, to the
tune of some $1 to $2 billion a
year.
Here is the so-called "dol¬

INDIANAPOLIS

•

SPRINGFIELD

PHILADELPHIA

gap was of that size, even while
Europe had been imposing, by and
large—and as she still is—the most

restrictions against imports
from the dollar area.
severe

Continued

on

page

49

year-

level.

Living costs

0.2%

eased

in

the month

to mid-December, the
It added, a 1% decline in
retail food prices was the chief factor in the dip. The bureau's
consumer price index dropped to 190.7%
of the 1935-39 average.
of Labor Statistics

Bureau

reported.

This

was 0.8% above a year ago and 12% higher than in the
period
just before fighting began in Korea.

In

the

steel

industry this week steelmakers still describe the

market for their products as "tighter than a drum," and demand
for alloy steel is threatening to split the seams, "The Iron
Age,"
national metalworking weekly states.
Strong points of demand,
of course,

reversal

automotive and defense business.

are

of these

strong

Barring

a

major

considered highly unlikely, alloy
producers expect business to still be at a strong level entering
the second half. At least one important alloy source is optimistic
for the entire year, this trade authority notes.
props,

Such expressions of confidence in demand
little

usually taken at

are

than face value because steelmakers have seldom been
known to be overly optimistic over the market outlook.
more

Warehouse

demand

for alloy steel in extremely strong.
One
place a spot order for the second quarter
amounting to more tonnage than was shipped to it in the entire
year 1952. About the only brake on current warehouse ordering
warehouse offered

seems

to

to be caution

against overstocking alternate grades of steel
Authority suddenly releases
critical alloying material. This doesn't appear likely in the near

in the event the National Production

future, declares this trade publication.
An "Iron Age"

check of big tonnage carbon steel items, bread
products of the industry, reflects no sign of easing
Bars, sheets, plate and pipe of any kind are still pursued
by eager customers. Only soft spots at the moment are nails and
merchant wire, both seasonal products, this trade
weekly notes.
and

butter

demand.

A

good

people in the steel industry believe that percent¬
are too high on various products.
convinced, some for the first time, that set-asides

many

seem
for the second quarter will not be

entirely taken

up.

Another complaint frequently heard says "The
that military set-asides do not hit all producers

Iron Age," Is
uniformly. De¬
pending on where they are located, some mills are forced to
accept defense, business to the limit of the set-asides, while other
producers find their defense tonnage only partially taken up.
Also, very little, if any, defense business is being placed with
the premium-price producers.
The military has the advantage
of being able to buy from the lower-price producers.
Of course
this

means

that civilian customers have to

buy the higher priced

steel.

The total

"take" of military steel is not increasing. Rather It
tapered off from the post-strike high when mills were hit
with heavy demands for make-up tonnage in addition to regular
has

scheduled quotas,

Automotive

the

concludes "The Iron Age."

production the

preceding week to

past

week advanced

its highest point in

10

by 8%

from

weeks, "Ward's

Automotive Reports," states.
United
an

States

auto makers

last week

assembled

111,398 units^.

increase from 103,286 of the preceding week and

The

main

added,

were

reason

the

and Studebaker

put helped to

for

last

week's

improved

"strong" production
over

the prior week.

lift General Motors

a year

gains

considerably

earlier.

output,

made

by

"Ward's"
Chevrolet

Chevrolet's increased out¬

Corp.'s

auto

production last

Continued

on

page

COMMODITIES

Living

gap" which up to now has been
filled by American aid. And the

'!
NEWYORK

II, but fell short by about 6% from
equalling the all-time high recorded in the latter part of 1943.
With respect to employment, claims for unemployment insurance

1

been maintained.

lar

COMMERCIAL

since the close of World War

higher than before the

pressures have
standards have
Europe has been
lifted from economic prostration.
But in spite of all the progress
made, and evep before Korea im¬
posed new burdens of rearma¬

lessened.

Exchange

Midwest Stock Exchange

Underwriters and Distributors

CORPORATE

ago

helped Europe accom¬
plish much. Production and ex¬

American Stock

Exchange

weeks

States has

MEMBERS

Exchange

a

1947 to conclude that the expendi¬
ture of $12 billion by the United

ESTABLISHED 1879

New York Stock

as

few

was
further noted in total industrial output for the past week. Over¬
all production last week approached the highest level reached

greater than the 67,320 in the like week

Succeeded?

F. S. MOSELEY & CO.

levels of

They

trading relationships among
world, rest¬
ing on full convertibility of cur¬

Corporate Securities

the reduced

first, by re-establishing multilat¬

rencies

Index

J
Recovery from

age set-asides for defense orders

the nations of the free

J

Industry

would seek to do this in two ways:

eral

of

Price

Auto Production

Business Failures

objec¬

an

tive that in the postwar years has
become uppermost in our minds.

cern

foreigners."

first mention

me

Retail Trade

Commodity Price Index
Food

and

trying to

we

are

be ready to meet force with force.
about for¬ at the fuel consumption. Policies
So long as today's international
eign aid, in its national as well as at home, and in the wider spaces
tensions continue, the burden of
its international connotations.
of international relationships, are
a

Carloadings

is the philosophy under¬
the American program of
foreign aid?
What are its ob¬

What

Electric Output

State of Trade

What

jectives?
get to?

Steel Production

The

lying

I want to talk to you

This is

<r

Aid Program

permanent and major prop,

a

of talking through

accuse me

hat.

Fhilosophy Underlying Foreign

in discussing Foreign Aid Program,

it should not be

warns

and
my

President, International Bank for Reconstruction
and Development

World Bank executive,

interests of all my hatters in mind.
And in any case, I hope that none
of you will adopt my metaphor—

Thursday, January 22, 1953

...

A number of the world's
are

largest corporations
successfully engaging our professional

services to assist them in the

profitable tim¬
ing oL their commodity purchases—and in
their inventory and
production planning.
You

are

cordially invited to make

inquiries without obligation.
Industrial

Commodity Corporation

122 E. 42nd

Street, New York 17, N. Y.

81

Volume 177

Number 5188... The Commercial and Financial Chronicle

Washington's "Morning After"
Is the

—

(285)

embracing interest that is broader
and more political. The disposi¬
tion

of

the

cally-loaded

Honeymoon Otf?

—

at

its

June

By A. WILFRED MAY

enced

Budget Difficulties

future of the politi¬

Excess

scheduled

Profits

deadline

Jan.

traditional

21

—

30, will certainly be influ¬
by the Treasury's attitude.

was

honeymoon of
and

harmony

the

tors

ly curtailed—

as

it

not,
fact, al¬
ready been

of

well

The

before

by the Wilson "accident."

ficulty of the problems facing
is

fact,

new

it

conceivable

is

Administration's def¬

icit may even

show

increase).

an

No matter what cuts may be in¬
stituted under Budget Director

Dodge (even down to
able

$50

an

billion total)

unattain¬

Treasury along with other depart¬

policy

visit of Mr. Churchill who made
a

sneak play to

other

our

steal a march on

Free

World

Continued

balance

a

a list of duties and
decisions. Following the

ments, faces

on

business

the
as

Administration

new

rest of the
*

community.

*

.Our First Century

of Service

Treasury's Household Burdens
A. Wilfred May

Realization of the volume and dif¬
Administration

new

(in

that the

runs

*

in

ended

some

lions

"trade-not-aid"

has

it began

to

Another Treasury headache, for
will be pulling considerable
weight—at least in a direction Under Secretary Folsom, may
arise
from reorganization of the
away
vfrom Secretary Snyder's
continued blessings on budget fat. Internal Revenue Department
The
new
Secretary, Mr. Hum¬ with its 50,000 employees, to pre¬
phrey, will of course be facing vent repetition of corruption and
live
the dilemma posed by the late still
up
to the political
campaign's promises of cutting of exigencies.
spending and taxes midst the
International Headaches
enormous
Congressionally-approIn the international field too, the
priated but still-to-be-spent bil¬

directly counter
principle
increasingly pervading other sec¬
to

will be sharp¬
if

soothing

interests, it

bliss

sweet,

ment functions to the

characterization

dent that any

possible before fiscal

1955.

ury

Tax
next

While
Secretary-designate
policeman's
Humphrey testified before the
role, be maintained? And should
Senate Tuesday that expression of
of an incoming President's first it be; in the light of its sister
hundred days as a post-inaugural Labor Department's gradual de¬ Treasury views now would be
premature, the EPT controversy
honeymoon period has surely be¬ velopment
into
a
pro-laboring
is sure to begin soon.
Similarly
come
a
man pressure agency?
gross
is remission of the 10% rise in in¬
fiction.
An apparent forerunner of Com¬
dividual income tax a matter for
On
this
merce
Department difficulties in early Treasury
consideration, for
cold Wednes¬
statements of policy occurred a while
it is scheduled to apply only
day "Morningmonth ago in Secretary-designate
beginning with 1954 income, it can
after" Ike's
Weeks' statement to the press on
be made effective at any time by
"wedding
tariff philosophy.
While his al¬
day," it is evi¬
laying of fears of tariff reduction legislative action.

WASHINGTON

The

will not be

On the Budget also the Treas¬

a

this time

at

conclusively brought home

Treasury

constitutes

an¬

other typical place where the new

Family, even though aided by an
outstandingly excellent team of
servants, including George Hum¬
phrey, Marion Folsom, Randolph

by

Burgess and the held-over An¬
exploration of
their immediate
drew Overby, cannot for a moment
agenda
with
members
of
the avoid nettlesome household
prob¬
President's official family.
lems.

In the area of debt managing, the
Treasury must soon make up its
mind about taking care of the $8%
Commerce Department,
as
dis¬
billion of 1%%'s coming due Feb.
cussed by its
Under Secretary15 (there are $5 billion additional
designate Walter Williams with
certificates coming due June 1,
your correspondent this morning,
and $2.9 billion Aug. 15). The in¬
will be "to develop an
atmosphere
in which business (as distinguished coming officials must choose be¬
tween the alternatives of either
from
business-men)
can
live, a
simple roll-over; or a combined
to further the aim of the nation's
offer of an option to extend for
ever-increasing productivity;
to
a
year or
to go into an inter¬
do everything that can be
soundly
mediate bond; or to go entirely
done
to
improve the economic

Policy Problems at Commerce

The aim of the Republican-run

climate
can

in

which

free

enterprise

operate."

into intermediate bonds—the

intermediate
year

Surely
ideal

this

altogether
unobjectionable aim.

and

But—what
CED-s t e
course

is

will

heated-up

the

of

event

either

war or

recession?

Will

politically

pop¬

demands

for

controls

over

prices, or over prices-and-profits
with exemption of wages (follow¬
ing
the
latest
CEA-Keyserling
dictum) then require hard deci¬
sions

of
practical governmental
policy as well as theoretical ide¬
ology? The event of all-out war
would, of course, vastly intensify
the pressure for enlarged NPAtechniques, among other Com¬
merce

On

functions.'
the

other

be

a

said

5-6

21/£.

Important Treasury Decisions

happen

not the inevitable

ular

to

an

to this
ere d-middle-of-the-road

in

bond

•

.

hand,

The

course

decided

on

here will

be momentously
Choice

of

significant.
straight roll-over

the

of short-term low jnterest

tions would

obliga¬

continuation
Administrations' easymoney
debt-management policy.
In view of the oft- and emphati¬
cally-stated convictions of Treas¬
ury
debt-Manager Burgess and
Reserve Board Chairman Martin,
and of their colleagues now in the
saddle, favoring lengthening the
term of the debt, this course seems
extremely improbable. On the
other hand, the change
from
short- to long-term financing must
necessarily be evolutionary, rather
presage

of the past

can
the
Department's distinction between than sudden.
Taxation recommendations by
pro-business
and
pro-business¬
the Treasury constitute a field
men, with confinement of govern¬

Stein Bros.&Boyce
MEMBERS
AND

OF

NEW

OTHER

YORK

STOCK

LEADING

EXCHANGE

EXCHANGES

BALTIMORE

LOUISVILLE
WE ANNOUNCE WITH

MR. R.
MR.

PHILADELPHIA

*

NEW YORK

*

P. ARRJELL B. HOBLITZELL

COAST TO COAST
TRADING

WHO HAVE BEEN ASSOCIATED WITH US FOR MANY
ADMITTED TO GENERAL

created through the

Bruce & Co.

consolidation of the

YEARS

PARTNERSHIP

MEMBERS NEW YORK

Pacific Coast firm of

< Bit

STOCK

EXCHANGE

Conrad, Bruce & Co. with

AND OTHER STOCK AND COMMODITY EXCHANGES

AS OF

ORGANIZATION

j. r. wllliston,
ESTABLISHED

r

CUMBERLAND

EMMET BRADLEY

AND

HAVE BEEN

»

PLEASURE THAT

MR. CYRIL M. MURPHY

J. R. WilHston & Co.

JANUARY 15, 1953

in the East.

JOHN C. LEGG & COMPANY
BALTIMORE




Quotations
NEW YORK

5

New York

Portland

-

Inquiries Invited

San Francisco

Seattle

;

Los Angeles
Miami Beach

friends,

page

102

6

The Commercial and Financial Chronicle...

(28G)

Thursday, January 22, 1953

>*

achieve

to

"Some Aspects of Negotiated
Securities Markets

government regulation
an
all-round regula¬

than

more

tory
I

job.
*
suspect that very few people
of the securities business

outside
realize

in

that'

the

areas

many

standards of business practice and

By DONALD

C. COOK*

fair

dealing established and en¬
by
industry
regulatory
.groups are even higher than the
^standards imposed by Federal
statute. A government necessarily

Commission

Chairman, Securities and Exchange

forced

Thongh lauding "self-regulation" in the securities industry,
Commissioner Cook stresses that outside regulation is essential

deals in

substantial reduction of
SEC powers would be a mistake. Points out importance of
over-the-counter markets, and approves Frear Bill, as to which,
he says, if shown negotiated markets will be injured by it,
SEC "will receive suggestions" as how to serve the investor,
while maintaining balance in both auction and negotiated
markets. Holds there is still'room for improvement in securi¬
ties industry, and says, in many cases, spread between bid and
safeguard public interest. Says

to

any

asked prices is too
very

of

ner

the

Dealers

New

York

Security

These

Association.

always enjoy¬
occasions

able

well

as

as

extremel y

worthwhile.

is

It

standards.

And

is all to your credit and,

I am

helpful

for

regulators^

statutes.

and

the

y o u r

lated

regu¬

to

get

together
pe¬
riodically for
a n
exchange
ideas

of

is

par¬

ticularly
Donald C. Cook

in

j'.

the

true

a

the

regulated
real extent,

very

also

are

to

regulators

regulatory
been

as

securities

benefit

the

And

of

are

trade

standards

which

industry
as

While I

trate my
an American airman

It

should

we

"!&>f

our

country.

financial

The

center

power

:^attendant

responsibility

jpvho make

up

of

and

to

be

you

its financial,indus¬

try are accordingly

enormous.

what the
do

new

a

office.

take

in

*An

27th

address
Annual

by "Chairman Cook at the
Dinner

of

the

Security Dealers Association,
City, Jan. 16, 1953.

New

York

New

York

amount

value
of

industry.

one

a

it

♦

FEDERAL DEPOSIT

Administration

field

a

of securities

note of caution.

Powers Would Be

Of

thing I

one

am

a

Head

Mistake

tially

55

certain. Any

to eliminate or substan¬
reduce the
regulatory
of the Commission would
serious mistake. Indeed, in
opinion,
such
an
attempt

attempt

in

this

experience

has

takes

Office:

i

The National

Wall Street

New York

-

Municipal Bond Department

of New York

City

Bell

be

a

my

would

be

unsuccessful.

With

1-708

;the

something

eye

in the late twenties and early

thirties.

As'

a

result

fidence has been
in
our

Underwriters

our

financial

public

Distributors

—

Dealers

,

con¬

greatly restored
markets

and

in

PUBLIC UTILITY,

securities dealers.

RAILROAD

If the laws administered by the
SEC were to be seriously tam¬

INDUSTRIAL and MUNICIPAL

convinced that
it would only result in permitting

SECURITIES

pered with,

I

am

Members

Langley & Co.
York Stock Exchange

New

New York 6, N. Y

115 Broadway




Teletype NY

cooperation and assistance of the

W. C.

.«?

City Bank

powers

substantial

self regulation

shown -that

•

INSUKANCK COK FOR A i ION

be

can

'•

Federal regulator
of

This

•

BONDS

Substantial Reduction of SEC

the securities field have taught

the

r

MEMBER

a few days
Administra¬

No

new

the

perhaps sound

substantial factor in

me

4

regulation. We can only guess, and

high degree of self
their memberships,

years as a

41

MUNICIPAL

all recognize

safeguarded. In

sure

supervision of the Securi¬
and
Exchange Commission,

My
in

page

'

■

stressed, however,

be

will have

we

placing and
maintaining
the NASD in
the
powerful position it now occupies.

a

on

and
k

Established 1812

industry, the SEC has succeeded
cident increase in the importance National Association of Securities in substantially ridding the field
and responsibility of the financial Dealers. Because
of those unscrupulous operators
you appreciated
sLommunities in those areas, it is the importance of self regulation and
ruthless
business
practices
*imquestioriably true that New in your industry you have been which gave the trade such a black
still' the

Continued

STATE

§

the

in

I

pr

both types of regulation are
essential if the public interest is

will

association was in the fore¬
i '.themselves.
ground of the groups lending their
ii', Despite the remarkable devel¬
support. Subsequently, when the
opment of our mid-western and Maioney Act was passed virtually
iar western states, and a coin¬ all
of you became members in the

is

would mind, young
man.
I procured this space for
Gwendolyn and I intend that she
"Indeed,

trav¬

was

at the
replied,

looked up
"soldier and

American

story which may illus¬
point. During World War

a

II

geat she occupies?"

lady

necessary.

statutes would
good as I con¬

your

bYork

The

that

der the

a

heard

principles. Indeed,
stifling rigid¬

business

high

security dealers associations
allowed to organize and, un¬

regulation of

ethical

tion

again in 1938, when it was

undertake

I

ity, government regulation alone
simply could not accomplish the
objective
of
maintaining
those

tional

ties

believe the

the

have

ridiculous, but
analogy to be apt.
was in England recently

I

without imposing a

proposed to the Congress that na¬
be

forces. This sounds

eling from Southampton to Lon¬
concerned with the more don on a 'very crowded train.

cooperation

enlightened

have

secu-

rities industry,

ssvhere

Without

sider them to be.

and

viewpoints.
This

these
not

Federal

first

the

of

the

the

convinced, to your long term ad¬
vantage also,
that you do en¬
deavor
to
maintain
these high
ethical levels of fair and equit¬

group
and
as
individuals you
strongly -supported the enactment

mutually

be¬

often

But

you
it

too

standards.

advanced

prominent role in this industry.
From that early date you
have
recognized ' the tremendous im¬
portance of both government reg¬
ulation and self regulation in the
securities
industry.
Both
as
a

are

that

far

maximum

come

since 1926, your
played a very

has

Association

inevitable

is

It"

standards

such

wide.

Over the years

happy to be able to
participate in the 27th annual din¬
am

legal

standards.

able
I

the enforcement of

After a long and fruitless search,
again to swarm into the field the airman came to the last com¬
irreparable harm of in¬ partment in the last car. There he
vestors, the securities industry, saw a little dog sitting beside an
and
the, country
generally.
It English lady. The solaier walked
would be like deciding to elim¬ up
to
the lady, said
politely,
inate crime by removing the laws "Madam, the train is full and I
defining crimes from our statute am very tired. Would you mind
books and disbanding our police holding" your dog so that I may
the lawless and ruthless operators

once

•—to

Wertheim & Co.

Tel.

BArclay

7-8800

cftlembers &£eu) York Stock Exchange

120

BROADWAY

NEW

YORK

5

U. S. Governments
,j

Municipals

Public Utilities
«

.

Railroads

Industrials

Equipment Trusts

Preferred Stocks

Canadians

Bank

Acceptances

INVESTMENT^

Salomon Bros. & Hutzler
Members

Sixty Wall
*

New

Ydrk

Slock* Exchange

Street,'New York 5, N. Y.

'

Private

u fts

tt

■

T

BOSTON
CLEVELAND

PHILADELPHIA
HARTFORD

CHICAGO
SAN

FRANCISCO

"

•

/

Volume 177

Number 5188

Th^Commercial and Financial Chronicle.

...

(287)

be

"The

Uneasy Triangle"

after

"Dear

a

situation of

three

for

months

planning

were

today

had

we

would* take

as

when

zation and

program

accomplish

ago

the

agreed

I

that

triangle
collecbargain-

the
stable economy even in a free society committed to collective bar¬

reason-

gaining.

full

I

employment

inflation

stable

ity of the

reasonably

pur-

the

This

dollar,

is

rent

cur¬

a

problem

all free

in

na-

I

se-

a

.

this

broad

subject

that

arid

achieved

our

employment

bargaining.
can

bu

and

level,

free

have any two of
not all three at the

three
time.

last

as

bave

|or

from

you

himself.

tance of technology and the

science

that

make

can

the standard of

he

advancing

an

toward

living.

Due

January 1, 1953

January 1, 1983

Price 102.625% and accrued interest

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

HALSEY, STUART & CO. INC.

raising

When

in

New

about

the

are

York

you

so

we

can

y

.

BEAR, STEARNS & CO.

special
General

DICK & MERLE-SMITH

EQUITABLE SECURITIES CORPORATION

a

SCHOELLKOPF, HUTTON & POMEROY, INC.

can

talk

I

said,

tell

you

AMERICAN SECURITIES CORPORATION
STROUD &

BACHE & CO.

BAXTER, WILLIAMS &, CO.

k

COMPANY

INCORPORATED

>

going to

matter?"

"Wednesday, but

'•

n

You know he is in
regrets that he canthe matter to you

u

Pri

Company

First Mortgage Bonds, 3iHs% Series due 1983

^

Dated

and became as
year's Federal

caner said:
message

w! A™erican people want and Eisenhower.
ThJe *
.£an. ^ave
three. Augusta., He
?n +i?
cann®t have not present
anderestimated the
contribution

The Ohio Power

budget when ten weeks ago I received a telephone call.
/

you

the

aside

set

obsolete

collective

same

-

My proposed detailed discussion

full

They argue that

^ $22,000,000

.

of "The Uneasy Triagle" was sud-

incompatibility be- denly
price

1

The

policies in this area. Many
people seem to believe that there
stable

\
'

*

Message from Gen. Eisenhower

our

a

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

an

people

of this kind of balanced progress,

essential

w,1.tlJ. GMe*}~ made himself available for Consul-

in both industry

would subscribe to the importance

tween

is not

The

a

from

an

f

full

and agriculture if all of

GREGORY

& SON

THE

THE

MILWAUKEE COMPANY

ILLINOIS COMPANY

INCORPORATED

me

They have ajittle

more about it?" My caller
entirely overlooked the possibilanswered, "It is really not a proper
ity that a reasonable division of matter to talk about over the

the

wealth that

new

thus

can

be

created^a
division between those
involved inr.producing it and.those
who
each

to

of

us

1

to

provided

the things

he would

give

workmen

ave

can

phone, but if you will take on the
responsibility he has in mind, it
whl probably change your way of
jjfe »

willing to continue

is

for

work

like

it—and

consume

That

ranks

as

one

of

offer to sell nor a solicitation of an offer to
The offer is made only by the Prospectus.

This announcement is neither an

the

hient.

of living
they expect^ without inflating the

-i

"

■

shortly I found out that the; 'Vgreat American we have elected'
Pl.esident

country wanted;
•
Defense.
We in General Motors have pro- I called Mr. Sloan orr the phone ; \
ceeded on the basis that a stable and
said, "Mr. Sloan, i need some ' ?
price level, reasonably full em- good advice, and I would like to
ployment and free collective bdi- come to New York to talk with":
gaining can be made compatible you about it." He said, "All right,
' *
through progress and progress- C. E., what's it about?" I replied, » ,
sharing. We have assumed riot "It concerns me even more than
level.

price

.......

.

.

.

me

of

100,000

Shares

our

to be his Secretary? of

v

only that it

buy these securities.

great masterpieces of understate-

the improving standard

The Ohio Power
4.40%

Company

Cumulative Preferred Stock
Par Value

$100 Per Share -

,

is theoretically

pOs- it does General Motors/'
When"
achieve this desirable re- Mr. Sloan found out what PresiSUlt, but we are doing our part dent-elect Eisenhower wanted me
in practice to bring it about.
Of to do, he said, "Well, you will
course, unsound monetary and fis- have to give that real considera-,
pal. policies beyond our control, tion."
After thinking
about it
and perhaps I should say the Ko*
overnight, he told me . the next.,
sible to

War, have impeded progress
in this direction somewhat. I feel

rean

sure

that the

new

Administration

is going to take care of that.
An
understanding of the proper
relationships between wages,
prices, productivity and progress
is a vitally important matter not
only for industry and the workmen

in

our.

people of
Our
*

plants but for all the
country.

our

free

world

has

demon-

morning that he did not

see

Price

beyond

a

$103

per

Share

(plus accrued dividends, if any, from date of issuance to
of payment and delivery)

'

date

how

I could turn it down unless it was
for

personal reasons of health, and «•
that, if I were willing to take the
Copies of the Prospectus may be obtained in any State only .from such of the several Pur*
chasers, including the undersigned, as may lawfully offer the securities in such State.

assignment; the corporation would /
agree that I could retire under the
provisions of the General Motors
Retirement Plan which requires
retirement at 65J>ut permits retirement between 60 and 65 on a
mutually satisfactory basis.

Lehman Brothers

After thinking about the matter

American Securities

^or a week, I told the Presidentgreatest productivity can only be elect that I would take the assign^achieved by stimulating the iniF< ment and sever all of my business
strated

Ball, Burge & Kraus

Corporation

question that the t

.

Baxter, Williams & Co.

connections. He then asked me
^society. Likewise, it has been derm< H I would go with him to Korea,
onstrated that to maintain politi- I then said, "When I join up I'm
cal stability in such free nations in- When do we go?" As you men

rtiative

of

the

millions

in

a

Blair, Rollins & Co.

of

York

address

MoLorama

City,

by
of

the

19,




Hirsch & Co.

the

Mr. Wilson at the
1953" Luncheon, New

January

Dick & Merle-Smith

Lee Higginson Corporation

the people.

Secretary of the Interior
*An
"GM

1953.

A. G. Becker & Co.
Incorporated

on

Reynolds & Co.

NoJanuary 22, 1953.

vember 20
,

It occurred to

me

that you might

Estabrook & Co,

Incorporated

know, the President-elect made
the announcement Of my appointment along with that of George
Therefore, such progress based Humphrey, as Secretary of the
on technology,
improved organic Treasury and Douglas McKay as

living standards

Bear, Stearns & Co.

free!-

it is
necessary to maintain
general welfare and improve

job

ity to his successor and still main-

.u

0

with

the perspective of my
experience
in General Motors and
my obser¬
vations of the results achieved by

is

u-h

continuous

avoided

be

can

economy

be accomplished

rious effort to

■

announcement

able objectives can be achieved is
the vision I have of what could

going

was

to make

'

of my confidence that these desir-

tions.

C. E. Wilson

or business ever did as fine a

all

This

employment,
a
growing population, and better
living for all even though our
country must support a substan¬
tial defense program.
The basis

ending power

discuss

confident

am

responsibility.
J.
in all industry

* *la£ no o^enambitions than tain his interest in the- business,

.

•'

and the stabil¬

of

the fact that in

a political
of view. Progand
progress-sharing offer
possibility of establishing a

easy

ably

great

any man

doubly important

the

being

this

will

■important both from
ress

me

doubt if

more

gle,"

tiye
ing,

.1'

Sec-

and economic point

un-

new

continuing effort to
with the same

a

human effort is

subject "The
Uneasy Trian-

my

the

rPrlilayi1fgla"~0ver leaving of turning Over such responsible

connec-

as

for

probability !ral Mot0rs an<?" was satisfied to tation; but gave the 'juhior execushortly be completely sev- have my work in General Motors tive the complete latitude to exereriiiS'
mv
ronnert.inn<?
ering* all
all * my
connections with
with lePresent my life s work. I have ciSe his own initiative and get the
greatly appreciated your support, job done.
General Motors Corporation.
"I would like to tell you' again
"I also greatly appreciated your
e ^ anc* encoura£emeht through how much I have appreciated your
analysis of the problem and your the. years. You have been espeadvice in regard to the matter. I cially Understanding
Continued on page 97
during the
of

I

full employment, growing population, and better
living for all. Reveals details of his appointment as Defense
Secretary and promises streamlining of defense organization.
Some

in

made

appointment

steam

on account of my feel-

in&uof reSret—P^haps better de-

retary of Defense and in the light

economy,

we

you

and

assignment

Sloan:

tion with my

stable

a

as

thusiasm

Mr.

statement

Expresses confidence

be avoided in

very mixed? emotions last* six years when I haye been
the whole thing and have the chief executive officer, and.
yet gotten. _up proper en- y0u were willing to turn over to

over

not

an-

was

7

have

still

wrote

few days

appointment

"This is just a note to let you
know how much I appreciated the

Describing the "uneasy triangle" facing nation as: (1) collec¬
tive bargaining; (2) reasonably full
employment, and (3)
dollar purchasing power stability, newly designated Secretary
can

the

I

nounced:

By C. E. WILSON*

continuous inflation

letter

a

Mr. Sloan on Nov. 25, a

Secretary of Defense-Designate
Former President, General Motors Corporation

of Defense says we can have all three.

interested in

;

Stroud &

The Ohio Company
Company

Incorporated

#

The Commercial and Financial Chronicle...Thursday, January
'■

(288)

V

r

<

v-

•

»

.

Products and Processes—Illustrated booklet describing use by

of alloys, carbons, chemicals, gases smd
plastics made by Union Carbide—Ask for booklet D—Union
Carbide and Carbon Corp., 30 East 42nd Street, New York
science and industry

Dealer-Broker Investment
Recommendations & Literature
mentioned will he pleased
following literature:

It it understood that the firms

send interested parties the

to

17, N. Y.

—Vilas & Hickey,

available

49 Wall Street, New York 5, N. Y. Also
discussing Buffalo, Rochester &

Circular C-23,

is

Forecast—Appraisal of the outlook for
business and the markets featuring analyses of underlying
economic trends and their probable effect on business in the
Review

and

Hentz &

issue surveying business prospects
with selected list of securities with possi¬
bilities for 1953—Ask for Copy C—G. H. Walker & Co.,
1 Wall Street, New York 5, N. Y.

tin—Taussig, Day
St. Louis 1, Mo.

&

investment funds for 1952—Bulle¬

Co.,

Inc.,

North

316

Ten Year Statistics—Booklet on industrial

Stocks

Bank

Staats & Co., 640

Special study— William R.

—

South Spring Street, Los Angeles 14,

Canada's Natural Gas

40

Co.,

&

What's Ahead?—10

Co., 330

&

to

Street,

Bay

Canada.

Review

Outlook:

and

Toronto, Ont.,

1953—Brochure—Bache

Chart

Bulletin

—

Services

to

Industry

Bregman,

—

Stocks—1001

charts complete

of

Crossroads

the

the

East

—

Lubetkin &
Canadian

City

ment Trust

Denver

50

available is
rent issue of

a

a

report

Quotation

Bureau,

Inc.,

46

Front

1953.

Street,

York 4, New York.

v

J.

R.

Williston, Bruce
Angeles 14, Calif.

&

of

market

Co., 530

Plastics—In "Highlights No. 21"

action

West

Grande

a

Co.,

Ill

District Bonds

Broad

Street, Philadelphia
semi-annual appraisal of Equip¬

Western

Corporation-Seagrams

Railroad

—

Club of Detroit 37th An¬

Dinner

the

at

Sheraton

Cadillac.

(New York City)

Jan. 22, 1953

American

Stock

and

Twenty

ing

and

Exchange Five

annual meet¬
dinner at Cavanagh's
Crystal and Emerald Rooms.
Club

Jan. 26, 1953

Bond

(Chicago, HI.)

Traders Club of

Chicago

Annual winter Dinner and instal¬

Memorandum

—

lation of officers at the Furniture

H

Bulletin

—

Jan. 27,

1953 (Boston, Mass.)

Boston

Investment Club dinner

meeting at the Boston Yacht Club.
Jan. 27,

Twin
—

1953 (Minneapolis, Minn.)

City

Security

Traders

Winter Dinner.

Co., 25 Broad Street, New York 4, N. Y.

Products

Dreyfus & Co.,

Witt Conklin Organiza¬

Also available is

Company—Analysis—Freehling,

Gas

Indiana
Water

Also

a

Meyerhoff &

Water

&

Co.—Annual

report—Indiana

Gas

&

Co., Inc., Indianapolis, Ind.

Iowa Southern Utilities Co.—Card memorandum—G. A. Saxton

cur¬

&

New

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

Laclede

income—

Street, Los

Gas—Memorandum—Josephthal & Co., 120 Broadway,
5, N. Y.

New York

National
Broad

Airlines—A study and appraisal—Selig Altschul, 25
Street, New York 4, N. Y.

North American
White &

Acceptance Corporation

—

Circular

—

J. G.

Company, Incorporated, 37 Wall Street, New York

5, N. Y.
Plastic

Wire

&

Cable

Corp.—Analysis—Amott, Baker & Co.,

Inc., 150 Broadway, New York 38, N. Y.

Company—Analysis—Stieglitz & Co., 40 Wall Street,
5, N. Y.

New York

Riley Stoker Corporation—Analysis—Dempsey-Tegeler & Co.,
210 West Seventh

a

&

(Detroit, Mich.)

Jan. 22, 1953

Broadway, New York 4, N. Y.

Pittston
and

Sixth

Field

Corp.—Memorandum—Hayden, Stone & Co., 25 Broad
Street, New York 4, N. Y.

Paper Stocks—Report with special reference to Robert Gair
Company, Inc., International Paper Co. and
Kimberly-Clark
Corp.—E. F. Hutton & Co., 61
Broadway, New York 6, N. Y.

Performance—19-year study

Investment

Filtrol

Over-the-Counter Index—Folder showing an up-to-date com¬
parison between the listed industrial stocks used In the DowJones Averages and the 35 over-the-counter
industrial stocks
used in the National Quotation Bureau
Averages, both as to
yield and market performance over a 13-year period—
National

In

Co., 120 South La Salle Street, Chicago 3, 111.

&

International Harvester.

on

EVENTS

Club.

School

tion, 100 Broadway, New York 5, N. Y.
bulletin on Servomechanisms, Inc.
Ekco

tabulation of Steel Companies and in the

"Gleanings"

South

Eastern Industries, Inc.—Bulletin—de

Street, New York 5, N. Y.

list of Potential Stocks for

a

Philadelphia

Haupt

and

Certificates.

Rio

&

Hirsch &

and anal¬

Bissell

and

Incorporated, 123
9, Pa.
Also available is

Oil in Canada—Discussion in current issue of "Market Pointers"
—Francis I du Pont & Co., 1 Wall
In the same issue is

of Philadelphia

pany,

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

City Bank Stocks—Year-end comparison
New York City Bank Stocks—Laird,
Meeds, 120 Broadway, New York 5, N. Y.

Rich¬

—Semi-annual appraisal as of Dec. 31, 1952—Stroud & Com¬

Brochure

Street, Chicago 3, 111.

17

Limited—Bulletin—James

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

New York Bank Stocks—83rd quarterly comparison of leading
banks and trust companies of New York—New York Han-

ysis of

Fund,

&

Distillers

New York

Co., 30 Pine Street, New York 5, N. Y.

Central

advantages of municipal bonds

on

CompanyABulletin—Seligman

Sons, 173 Portage Avenue, East, Winnipeg,
Royal Bank Building, Toronto, Canada.

New York.

—John Nuveen & Co., 135 So. La Salle

Mining

Investment

ardson

Monthly Investment Guide—Tabulation of issues appearing in¬
teresting—Sutro Bros. & Co., 120 Broadway, New York 5,

seatic

Consolidated

Benguet

regarding industrial possibilities in New Jersey—Box J, Pub¬
lic Service, 76 Park Place, Newark, N. J.

Municipal Bonds—Brochure

COMING

nual

#

Company—Analysis—J. V. Manganaro Co.,
50 Broad Street, New York 4, N. Y.

with dividend records

of

*

#

Baltimore Transit

Exchange, covering 12 years to Jan. 1, 1953—
Single copy (spiral bound), $10; yearly (6 revised issues), $50;
three editions of "Graphic Stocks" 1924 through 1935, 1936
through 1946 and up to date current edition, all for $25
—F. W. Stephens, 15 William Street, New York 5, N. Y.
View

& Co., 52 Wall Street, New

Company—Card memorandum—Baker, Simonds
& Co., Buhl Building, Detroit 26, Mich.

Stock

Industrialists'

year

Bond

r

for full year 1952 showing monthly highs, lows, earnings,
dividends; capitalizations, and volume on virtually every ac¬
tive stock listed on the New York Stock Exchange and Amer¬

ican

in Wisconsin.

by Edward R. Dewey sent
to the Foundation for the

year

a

Alma Trailer

cussing financing for industry, planning of issues for new
capital, etc. —F. Eberstadt & Co. Inc., 39 Broadway, New
York 6, N. Y.
Graphic

a

assist management—Georgeson

Investors—Brochure dis¬

and

Mason

C).

/York 5, N, Y.
:/

Cummings & Co., 100 Broadway, New York 5, N. Y.
Financial

Loewi &

—

Co., 62 Henry

What We Do—How We Do It—Brochure describing services to

&

Co., 36 Wall Street, New York 5, N. Y.
Construction Machinery Manufacturers

reports
contributing $10

those

*

Commodity

development of New

Corporation—An¬

Co., 225 East
Street, Milwaukee 2, Wis.
Also available is a special report
on Ed. Schuster & Co., Inc., and a
brochure on Stocks Widely Held
alysis

Study of Cycles, 9 East 77th Street, New York 21, N. Y. (plus
a
chart of stock market cycles, projected to 1990—ask for

Resources—Discussed in monthly bulle-

Knowles

Street,

U. S. Vitamin

& Co., Inc., 39
Street, Chicago 3,

Street, Binghamton, N. Y.

Broeck

'

tin—Ross,

Eighth

York State—New York State Electric and Gas

Calif.

Canada—Bulletin—Oppenheimer,- Vanden
Exchange Place, New York 5, N. Y.

Sapphire Petroleums, Ltd.—An¬

alysis—Leason
III.

Tax Status of Dividends on

Research Department, H.
Co., 60 Beaver Street, New York 4, N. Y.
Manager,

coming months—Write

Avenue,

N. Y.

South La Salle

Securities Outlook—January

East

89

Corp.,

Rochester 4,

Pittsburgh 4%s of 1957, and a leaflet of data on New Haven.

for the hew year
Annual

Rochester, City of Exceptional
Opportunities—Booklet describing
the
industrial" opportunities
in
Rochester—Rochester Gas & Elec¬
tric

for 1953—Ask for Circular C-22

Railroad Securities—Outlook

22, 1953

discussion of "An All Plastics

World"—1Troster, Singer & Co., 74 Trinity Place, New York

6, N. Y.

Riverside Cement

Street, Los Angeles 14, Calif.

Co.

Analysis and review of the Cement
Industry—Lerner & Co., 10 Post Office Square, Boston 9,
—

Mass.

Troster, Singer
Members

74

N.

Y.

&

North American

Co.

Security Dealers Association

Acceptance Corporation

Trinity Place, New York 6, N. Y.

'

.

I

-

'

'

'

Primary Markets In Over-The-Counter Securities
Direct Private

Wire

Memorandum available

to:

Baker, Simonds & Co._

&

on

request

FUNCTIONS

Detroit

OF EVERY KIND

los Angeles

Co

Private

St. Louis

Gottron, Russell & Co...

Cleveland
founded 1890

H. A. Riecke & Co. Inc
B. E.

..Philadelphia

Simpson & Co

Denver

Young & Co., Inc..-




EXCELLENT LOCATION FOR

CLASS A STOCK

COMPANY
System

Edgerton, Wykoff & Co
Fusz-Schmelzle

'

Pittsburgh

z

J. G. WH1TE A COMPANY
INCORPORATED

37

Wall

Street, New York 5, N. Y.

V

rooms for 10 to 3000.
Wonderful values! 5 min.from
downtown N.Y. Clark St. sta.

7th Ave. IRT sub. in hotel.

HOTEL

MAin 4-5000.

/

st.George
Clark St.,

N. H. Frre,
bing st

Mgr.
bing,

Brooklyn

C. R. Maison, Bqt. Mgr.

Inc., Management

-'

Volume 177

}

•

•

Number 5188...The Commercial and Financial Chronicle

(289)
events

Uneasy Prosperity

Crossroads"

Time, Inc.

day,

children

are

recording

a

better

vantage

available

to

benefiting

us,

from

hind-

is

it

would

Or will

it

even

with -analyses

lead

stay

are

another.

or

the

of

living
always

men

the

which

our

Along

widespread

of

sense

uneasiness,

insecurity, uncertainty, and often
enough, just plan jitters. Call it

"Ah,"

prosperity g over¬
shadowed by uneasiness, no inter¬
pretation of
the
current
scene
makes

at

haps

or

unless

sense

it centers

"what

in

we
we

had

never,

are

it

so

oppressed by

a

us

to

extreme

an

&nh

a

facing

the

us,

path

typically

T+•

whSh

labor

the

tional
level.
real

good;
suspi¬

made

to

as

are
hp

pan

is

to

They

describing

the

sig h t,
will

they

instruct

their

grand¬

children

rjk*

in

tified

Man

Overcome

was

by his

crea¬

the

strange tions, tiie machines?
developments
Short of that vehicle

and

quaint

Qf

science fiction

cross-currents

machine,
that characwhich, if

e*XuZ 6

R.

Gettell

G.

any,

zat*ons W*U

tell

a

time

for

sure

of these characteri-

prove accurate. Each

represents an extreme. Each imCentury. plies a decisive solution of one of
It is temptthe basic conflicts which
*

20th

Dr.

fh

*

Six? £

writers,

can't

we

beloved

so

preoc-

u

x

•

their

about
will

they

they
are

Jn£ t0 s?^u:
findings.

about

say

What

cupies all of

describing the period im-

♦An address

by Dr. Gettell at Standard
"Advertising In Action" Conference, New York City, Jan. 16, 1953.
Poor's

today:

man

vs.

italism vs.

cap-

communism.

history has

a

of

way

re-

solving conflicts short of final deK1,

Of

CISlOIl,

To

that

blunting

the

^

edges

-

Of

this

torture

it

more,

is

the

who

man

way.
once

economic

analogy

worth

pointing

out

Take

turns

the

measures

to

left at every crossroad makes lit¬
tle forward progress.
He merely
walks in a circle.
By the same

The

of

the

few

of

the

,

,

than

Instead

we.

which

more

birth

come

of

the

to

standard

of the national economy.
Gross National Product, the

tion

comfort

be measured in years of

enjoy

more

more,

drive

and better autos (they drive

gadgets in the kitchen, the laun¬
dry and the livingroom to lighten
the tasks of daily living. They are
more
heavily insured.
More of
more,

the

1950's billion before Korea, to $45 billion

they

$25

billion

postwar,

to

$35

Times

have

nually during the prewar years,
to $125 billion postwar, to nearly
$225 billion today. Gross private

mass

nor a

solicitation of

an

homes.

well

improved
products
developed, and great

markets for them.

as

Vast

Continued

offer to buy

any

war as

on

page

of these Shares.

only by the Prospectus.

*

Company

Common Stock
(Without Par Value)

HAnover 2-9780

Rights, evidenced bu subscription warrants, to subscribe for these
shares have been issued by the Company to its common stockholders,
which rights will expire at 3:30 P.M., Eastern Standard Time on
/
January 30, 1953, as more fully set forth in the Prospect us.

v

■

\

'■r

,.vj

iW

'-'ft

■£

-

4

\

Subscription Price $35

•'w •«

n

a

Share

4^

Consultants

on

A Constructive Service to

As Consultants

on

structive planning

Municipalities

Municipal Finance
service

governmental units.

The several underwriters may offer shares of Common Stock at
prices not less than the Subscription Price set forth above (less, in the
case of sales to dealers, the concession allowed to dealers) and not
greater than either the last sale or current offering price on the New
York Stock Exchange, whichever is greater, plus an amount equal to
the applicable New York Stock Exchange commission.

Municipal Finance

for Cities,

we

render

a

con¬

States and other

This service includes experienced
Copies of the Prospectus

assistance

in

development of plans for

reorganization

of

the financing of

public

debt

structures,

financing,

,rv

signed

as may

may

be obtained from only such of the under-

legally offer these Shares in compliance with

the securities laws of

planning

We

AVE
are

DO

NOT

BUY

OR

SELL

MORGAN STANLEY & CO.

pleased to cooperate with finan¬
EASTMAN, DILLON & CO.

cial institutions and investment bouses.

GLORE, FORGAN & CO.

KIDDER, PEABODY & CO.

Wainwright, Ramsey & Lancaster
70 Pine Street

New York

Telephone WHitehall 4-3540




the respective States.

self-liquidating projects, and financial

relations.

SECURITIES.

existing

new

5, N. Y.

\,

f

UNION SECURITIES CORPORATION

January 16,195S.

-'

'

'

GOLDMAN, SACHS & CO.

MERRILL LYNCH, PIERCE> FENNER & BEANE

PAINE, WEBBER, JACKSON & CURTIS

new

civilian production. Amer¬

ica, emerging from the

617,669 Shares

Street, New York 5

They

buy more and
than they used to.

productive capacity has been put
in place, suited for military as

may

offer to sell

own

they

and

been

Insecure

an

their

save more

New

risen from around $65 billion an¬

Consumers Power
15 Broad

is

Con¬

them faster, too). They have more

combined, grew from around $10
monthly before the war, to

Adler, Coleman & Co
Exchange

can

more

billion

The offer is made

Exchange

before.

schooling) and they
leisure. They travel

own

This announcement is neither

Members New York Stock

ever

tively and qualitatively. They are
better educated (assuming educa¬

and

find domestic investment has increased
Progress. from under $10 billion annually
Uncertain
Advance,
Jittery prewar, to well over $50 billion
Growth. Each phrase carries some since Korea.

'Members American Stock

before

no question that the
American people are becoming in¬
creasingly well off. Over the years
they are being better fed, clothed
arid housed; better both quantita¬

earn

historian's

phrasemakers

term:

than

productivity

is

them

men-

Schizophrenic Qualities Epitomize
Future

than

odd

first

were

Of Uneasy Prosperity,

mother

work

And

rate, reflects the prosperity

there

probably be the Time currently. Consumer spending has

Our

at

are

war.

Employment
15 million more

,

tioned,
the
future
shorthand phrase for

will

over

of recent years.
In
terms of material

are

extremes

transac¬

are shorter.
Even that
infallible index of good times, the

likely to describe transactions, manufacturers',
Juru .timej> in a mTore temperate wholesalers', and retailers' sales

historians

prewar

buying. Tne

business

ing hours

a

,

na¬

tinuing miracles of technology
have become commonplace. Worx-

statisti¬

annual value of all the goods
services produced in the

of

higher;

greater

to

Paradise,

a

a

en¬

than double.

more

the

our

approach

to

of

have

we

So is consumer

persons

country,
choice to move always to is now
pushing $350 billion. Be¬
the right is a fruitless way to get
fore Korea it was around $275 bil¬
anywhere.
lion; at the end of the war barely
With this in mind, I venture $200
billion; prewar it was well
to suggest that our descendant- under $100 billion. Total business

token,

fashion

ndlvl(*ual vs- state,

'

But
&

us

iU,

When

us?

choices along the

y

the brief interval before

as

the Final War, the Decadent Age
of Technology, the Time
when

enough

nearly double the

_

cian's version

economy:

volume

is far

the last dozen years

incontrovertible.

close

nearly

fundamental trutn

tions and of industrial production

Whether comparisons

over

this

product, in constant prices,

is now

on

necessary

argument

prosperity.
are

be

Isn t

joyed prodigious growth. The

to be

even

1ooo

shouldn't

Not

the

dynamic

actually take (with prewar levels), the last half
a zig-zag,
dozen (postwar) or just the last
an
apparently couple (since Korea), the facts
■

we

proves

sometimes
_•

It

po-

sophisticate,

about inflation?

part.

belie

underlying contradiction. Per¬

still

J

the

says

illusory growth—offset by the de¬
clining value of the dollar?" Only

what you will: uneasiness
despite

prosperity

Illusory

an

Growth?

prosperity, progress, ad¬

growth of the postwar
has been a profound and

years,

Is Inflation Causing

qualities

times.

and

vance

the

Current

schizophrenic

epitomize

with the

in

trerne
1S rarely reached. With such
succession of crossroads

iden-

be

continue to

of

history is constantly presenting us cious fear that it's too good to
with choices of direction.
Any one last. Hence the Time of Uneasy
of
them, consistently maintained, Prosperity.

the Triumph of the Monolithic

State?

so

monotonously true

can

crossroad

one

Will it mark
the Renaissance of the Individual
or

so

one

no

So

point than is Gasp of Capitalism?

_____

it

true—but because it is

present made by
the present.
We

mediately after World War II will

our

stale

a

platitudes

conviction, not be¬
untrue—usually a plati¬

it is
is

that

marketing efficiency.

interpreting

little

become

other

consciously excited about it.

they
call
it
the
Beginning of
the American Century or will they
dismiss it as the Final Fluttering

our

carries

chronically,

going to be historians,

and

From

times.

of

Like

tude

grand-

some

has

cliche.

cause

Prosperity," Dr. Gettell calls attention, to situation which, along
with prosperity, progress, technical advances and economic
growth of the postwar years bavheen accompanied by uneasi¬
ness, insecurity and "just #Jain jitters."
Denies inflation is
responsible for an "illusory" growth, and ascribes uneasiness
to "devastating experiences of our lifetime." Decries scramble
for security, and holds it imperative that
key decisions be not
based on it* Says full security means
stagnation and calls for
One

dominant when

by a contemporary. The
recurring phrase "We are at the

Asserting schizophrenic qualities which epitomize our times are
likely to lead historians to call present
Time of Uneasy

increased

crucial and

appear

seem

viewed

By RICHARD GLENN GETTELL*
Chief Staff Economist,

which

trends which

9

SMITH, BARNEY & CO.
WHITE, WELD & CO.

the

59

The Commercial and

10

Financial Chronicle

.Thursday, January 22, 1953

..

(290)

iBy

home and abroad.

Canada Looks at Problems oi 1953
THE HONORABLE

DOUGLAS C. ABBOTT, Q.C.*
Canada

Minister of Finance,
•1

1

■

•

■

have been characterized by
expanding population, increasing productivity and a major
scale of capital financing. Points out Canada is approaching a
well balanced economy, and is no longer merely a producer of
agricultural products and raw materials. Reveals economic
implications of Canada's defense program, and, in pointing out
his country's dependence on foreign trade, calls for mainte¬
nance
of healthy economic conditions and reasonably free
world wide trading relations. Warns against too glowing ac¬
counts of

You
fcbout
view

Canada's

speak
Canada and to project a
into
1953.
No experienced
asked

have

to

me

has,

fjolitician ever ventures into the
field of proph¬
ecy,

except in

plati-

tudino

us

I

terms.

am

therefore

not

going to fore¬
cast

events

or

polic ies

in

1953,

rather
the

the

as

the

war

sional

and

technical

and

labor

the

of

men

cross

oil

in

investment

We shall
the 15 million mark before rapidly.
million people.

about 11

strides in aircraft construction and

industry

are

increasing

is

was

I do not propose to discuss in
significant increase in pop¬ any detail the nature of the de¬
has been
an
important velopments which are going on.
factor
in our rapid
increase in Alberta oil, Quebec-Labrador iron
production. In 1939 our gross na¬ ore, Kitimat aluminum, the St.
tional product was a little less Lawrence Seaway Authority are
than $6 billion.
In 1952 it was almost as familiar to such a New
about $23 billion.
After correct¬ York audience as this as they

increase in physical out¬

the real

other

put is better than 100%. In
words,
30% more people

produced

than

more

materials

foodstuffs

and

zation and

industrialized

recent

and

doubled its plant investment
the

years

*Address

Abbott before The
Economic Club of New York, New York
City, Jan. 14, 1953.

-

by

A

But

of Expansion

Period

founded

the

DEALER ASSISTANCE...

Ottawa

Our

Winnipeg
Calgary

ties to dealers.

Vancouver

We

in close

are

„

touch with the Canadian

York

London, Eng.
Kingston, Jamaica

scene.

If you

Correspondents
Wieting & Richter, Ltd.
Agostini

Underwriting and Trading

Departments offer special facili¬

Edmonton

wish to distribute a new
issue, make a casual trade or
obtain information, please call

Guiana

British

Brothers,

Ltd.

areas

of

Ours

has

been

Barbados

General
Private

Nassau

Johnson

&

Wire

System

Connecting all branches

Ltd.

Cooper,

Let

the world.

me

say

word

a

about

now

economic

fense.

Our

reached

implications of de¬
defense expenditures

postwar low

a

about

of

$200 million in 1947 and 1948. By
1950 they had increased to nearly

the

in

1951

to

nearly

financed

also

has

abroad

on

page

a

Orders Executed

on

Canadian Exchanges

regular commission rates

at

surprise

may

Burns Bros. & Benton, inc.

to

you

although this capital in¬

large,

we

37 WALL

we

lent abroad

.*;*•

Members:

The

whole

Investment

Dealers'

development.

t

The

Toronto Stock Exchange

Association of Canada

since

of

Company

Members:

Limited

'

provided enough
own savings to

the

Burns Bros. &

Burns Bros. & Denton

In

Wires

our

financed

Dlgby 4-3870

Affiliated with:

take into account the

have

we

Tel.:

STREET, NEW YORK 5, N. Y.

have,

to:

Ottawa

Montreal

Toronto

our

"

Capital investment is not merely
matter of borrowing "money."

In

Internal

STOCKS—

—

con¬

a

received from other countries.

have

—

Municipal

Corporation—External and

ourselves, lent or invested abroad
since the war more than we have

postwar

MONTREAL

Continued

Provincial,

Government,

investment.

of

volume

siderable

capital out of

ST., W.

propriations for our European al¬
lies amounting to nearly $700 mil-

The inflow of capital from

the war, we have

LIMITED

appropriations Amount to more
$2,000 million. Included in
these figures are mutual aid ap¬

than

——BONDS

by

greater

comes.

funds

W. C. PITFIELD & COMPANY

million,

Canadian Securities

essary
funds
from private

effect," if

Bermuda

235 ST. JAMES

econ¬

our

,

part of the nec¬
has been obtained
sources—from cor¬
porate reserves and from per¬
sonal
savings. - During the past
two
years
the rate of personal
savings has been maintained at
about 10% of total personal in¬
far

flow has been very

Manning & Co. Ltd.
Bahamas

of

are

Impact of Defense Expenditures

reasonably

a

however,

'

by governments but

hear that

Trust Company, Limited

foundations

The
omy,

Financing

However, it

us.

Trinidad

The

'

Major Scale of Capital

A

Canada has con¬
pessimists both at

postwar

Cornwall

New

put during this period.

financed

Toronto

by

about 60%.

Production

The financing of investment ex¬
penditures on this scale has been
a
major undertaking.1 Some of
this' basic development has been

John

in¬

$1,500 million and for the fiscal
year that will end next March our

Halifax
Saint

has

output

and

war

tonnage

$800

Mr.

Moncton

its

lives by

Branches

'

the

of

ployment.

unprecedented achieve-

of

end

creased

population and employment, it is well-balanced -development.
Ca¬
We are a country that equally clear, that it could not
nadians are not merely drilling
foreign
trade—20
to
25%
have been achieved without very
suggest an ap¬
oil
wells, they vare also building
Hon. D. C. Abbott
of our total production is for the
proach to the
heavy
capital
expenditures for new and modern refineries, and
export markets—yet we looked construction, for machinery and
problems that
are undertaking large new
petro¬
lie ahead. I need hardly tell you out on a world where destruction for
basic
development in such
chemical developments of modern
and dislocation had impoverished
that Canada is a wonderful coun¬
fields as power and
transporta¬ and
complex types.
During
the
try, growing rapidly and expand¬ many of our most important tra¬ tion. In the past seven years, Ca¬
war years Canadians learned how
ditional customers. It was not easy
nadians
have
set
aside
about
$25
ing in almost every direction. The
to manufacture all sorts of com¬
to be optimistic about the coming
billion
for
new
investment,
or
past 10 or 12 years, and especially
plex equipment and our business¬
the past 6 or 7 years have been five-year period at that time.
about one-fifth of our total out¬
l^ast and by
i m plication

industries — t e x vehicles, consumer
on.
The pulp and

so.

industry, for example, has
since

paper

highly

Canada's Well Balanced

industry to peaceful em¬

war

motor

the

portion has gone into defense.
sector of our
Although this increase in pro¬
ploying one-third of our total la¬ duction would not have been pos¬
bor force from the armed services
sible without a rapid growth in

of

expansion of the older

manufacturing

the

for

United States and the other

large
industry and rede¬

review

large amount

capital into the moderni¬

new

still the great
staple industries, agriculture, for¬
would be to a similar audience in
est products, mining and hydro¬
Montreal or Winnipeg. These great
electric power. These foundations
developments are of basic and
primary importance, but I would haye been greatly strengthened,
not have you think that we are expianded and diversified, and on
these foundations a sturdy
and
reverting to an economy based
balanced
economy
is steadily
exclusively on extractive indus¬
growing.
tries,
primarily
producing raw

levels,

in price

changes

for

ing

of

durables and

This

its close, we viewed
the outlook with a good deal of
concern.
Six years of war had
cost
us
the equivalent of three
and one-half years of prewar total

have put a very

men

tiles,

ulation

to

In addition our business¬

design.

profes¬

*

the end of this calendar year.

specialized

of electronics. We have made great

I know, not been today within a five-year period a
anywhere
in modern high proportion both of the skilled

population is increasing at
Canadian; and at the same time
a
rate of 3% per annum. Before
the proportion of direct Canadian
the war we were a country of

choose to adopt, the
Back in

1945,

soon

they coum pro¬

great variety of

a

equipment as efficiently and as',
cheaply as any other nation. We
the United States.
But have developed an efficient indus¬
learned their skills, and try in several important branches

the task of recasting a very

but

trends

and

from

duce

as

have
twice as
much output.
Much of this, but
gross national product. In spite of
by no means all, has gone into
a wartime tax policy that was as
rising standards of living. A large
drastic as that of any belligerent
part has gone into increased sav¬
country, our net national debt had
ings and investment, and during
more than quardupled.
We faced the
past three years an increasing

the most gen¬
eral and

1944

drawing

we

Our

remarkable.

is

record

in

sustained

times.

Whatever measurements or

indicators you

far

so

exceeded

progress.

ment.

expansion, a period of

expansion which in relative terms

developments in his country which

scale production,

they

for, large-

sufficient

orders

had

whAi

that

discovered

men

fortunate major oil discoveries of five
luck, good years ago launched us into an in¬

a

good

geography, good people—and per¬ tensive program of exploration
haps I should be allowed to add, and drilling, much of the money
good government—we have em¬ and most of the specialized equip¬
barked upon a tremendous period ment and skilled operators came
of

officer reviews postwar economic

Prominent Canadian Cabinet

of

combination

.

foreign investment, as in most
economic affairs, money is

other

merely

a

CANADIAN

convenient common de¬
of a great variety of

nominator

goods and services.

Canada's Natural Gas Resources
TV ATURAL GAS as a highly efficient, low-cost fuel, and as
1'
the basis of a major new chemical industry, has enjoyed

spectacular development in the United States during the past
ten years.

Indications

that the

industry in Canada is now on the
threshold of similar expansion. Our current Monthly Bulletin
discusses this timely subject, and reviews several companies.
are

W

e

ivill he pleased to mail you

when

we were

dian

Pacific

rowed

building the Cana¬

Railway,

"money"

we

bor¬

in London, Paris

but among our
increasing imports

Amsterdam,

and
most

in

75 years ago

rapidly

that

period

were

enormous

quantities of beans and salt pork
imported from Chicago and Min¬
neapolis to feed the hungry con¬
struction gangs who built the rail¬
way.
To an important extent the
C.P.R.

built out of mid-west

was

beans purchased with
British, Dutch and French money.
So in recent years the capital
pork

a copy

upon request.

&

Co.

Members: The Toronto Stock

Exchange
and The Investment Dealers' Association of Canada
330

BAY




in heavy imports of a great
variety of machinery and equip¬
ment. We have been glad to bor¬
row
this
specialized equipment
and
the
specialized technical/

all Canadian Exchanges at

regular commission rates or traded
in

•

York

New

States

in

United

funds.

'

♦

CHARLES KING & CO.
Memb'ers:
Toronto Stock

Montreal Stock Exchange

Exchange

Montreal Curb Market

Stock Exchange

American

61 Broadway

New York 6, N. Y.

tion

knowledge

STREET, TORONTO, CANADA

Orders executed on

and

inflow into Canada has its reflec¬

Ross, Knowles

STOCKS-BONDS

that

We welcome
ance

and

and

learn

we

accompanies

ix.

this technical

assist¬

quick to

profit

are

from

it.

When

the

Branch Offices:

Telephone:

Toronto

WHitehall 4-8974
1

Teletype NY 1-142
DIRECT PRIVATE WIRES
WITH

TORONTO

Montreal

CONNECT NEW YORK

AND MONTREAL

'

55

Number 5188

Volume 177

..The Commercial and Financial Chronicle

.

(291)

and Imbalances

^

-

longed or pronounced departure
from 'average on the high side will

years

•normally

average

later

Affecting the 1953 Outlook

be

balanced

the low

on

sooner

or

side, with the net

gain reflected only in the gradual
increases of longer-term averages.

By CHARLES E. YOUNG*
■

Practical

Economist, Weyerhaeuser Timber Company
:

describing four major kinds of business cycle, Mr. Young
depicts the outlook for 1953 and 1954. Maintains major elerr~r meats of strength that have supported the postwar boom are
now potential elements of
weakness, and we are approaching

end of the

.

.

n

to

one

customer..

a

We have

ferent variations from 999
ent

cycle

No

doubt

his
i

each

t i

c

fourth,

con-

own

o n s

on

subject,
developed out
his

e x

I

with

which

have had

perience
about

Charles E.

Young

i"

d

which

I

have

done

some

thinking.

The first is the analysis
cycle swings, and the second is
what might be called "imbalance
analysis." One of the leading ex¬
ponents
of
this technique,
Dr.
Charles >F... Roos, has termed it

"dynamic economics." ' By either
it

name,

means

the

within

detection. of
the

analysis- of- the

economy

and

extent

is clear

the

future

that any

praisal

for

outlook

are

the

econ¬

an

ap¬

particular interest at
because it serves to dis¬

tinguish

between

problems
and

Such

now.

has

present

faced

incoming

of

the

postwar

the

peak

on

seem

to

have

the

economic

the

by

outgoing

administrations

in

Washington.
of

is

possible

between
that

major rise

usually

in

more

the other side.

total

dis¬

in

a

business

industrial

produc¬

tion) and those that usually
cede

less

a

A

drastic

comparison

pre¬

change.'
of

the

present

situation with the general
pattern
of

postwar

developments

to illustrate these

serve

25

to

30

'(12

points

to

15%)
From

calls

for

a

including

may

at

their

course a

trial

production

within
now

It

20%

approaching the

situation

*

of

that

of

1920-21,
'
7

cut 1946 after the strike-torn first

non-durable

clearly

reached

reduction

in

throughout

increase

in

troubles

of

and

in the

depart¬
spread

and

phases of
production.

con¬

to

more

consumers

The

buying, coupled with

an

savings, added, to the
soft

goods

producers

following

year. By the late
early fall in 1952, it

and

summer

only fair to note that

was

situation

goods production had ended, and
the subsequent rise had begun..

the

in

the

that

de¬

political

new

takes

has

office.

It

respects to the
state of affairs that confronted the
new
Hoover
Administration
in
1929'

after

the

postwar

boom

clear that the decline

the

about

middle

parently

failed

tories

would

prospect will be nearly as drastic

the end of such

of

is-

1929-32.
clear

Nonetheless,

challenge to

administration

porters

to

and

weather

the

■

its

the

to

normally

sup¬

ahead

without

the

timing

as

at

in extent.

or

If
in¬

the

the

rise

normally

ex¬

at

of

end

disas¬
be

more

trous social, economic and politi¬

that

level,

exoected

a

it is hot, there is danger that

will

consequences

be

ap¬

inven¬

carry

period, there is
possibility that the rise
begun will be abbreviated

either in

difficult

to

subnormal

a

ventories

period

Be-

-clear

a

now
a

of 1953.

t

although it seems en¬
tirely unlikely that the decline in

that

soft

causetfhe decline just ended

of

the '1920's,

there

in

Normal timing for the rise that is
now under way would
carry it to

is

some

befell

cessive.

the

As

"

.

„

the

for

dential

than

cycle in

long

building,

it

was

resi¬
inter¬

rupted for about five years by the

Continued

;

on page

71

,

;r.

in

occurred

dential

new

resi¬

in.the nine months following the

building.

^Korean outbreak, reaching a peak
Before I discuss these 'Cycle
pearly in 1951. Since that' time,
movements
individually, let me
make

it clear

that

I

this cycle has been in

.

'

»4

•

\"

i*

we< /■

.

w

** T

think

take

declining

a

cycles phase, with the decline
apparently
primarily for showing
capped by the dip from March
how changes occur, not why they
"through July of this year.- The
happen. I have no mystical faith decline was normal in
terms of
in the inevitability of cycles or in
its length, but unusually mild in
are

useful

their

dominance

over^

other

fac¬

—

tors

affecting economic activity.
At the same time, however, there
apoears
to be a great " deal of
validity to the proposition that we

'

Vr *

its extent*

The lack of

pleasure /■

Mr.. William H.

''

''

•

k

V,"„

.

in*announcing that

,.

...

.

J

.

/

.

Ramsay

depth

any

:

*

to

this

doubt

decline

the

on

casts

•

considerable

likelihood

that

•

/

has become

*

.

..
.

.

the

'

rise

under way

now

tensive

will be

as ex¬

moves

have

these

as

a

usually been in the past.

partner in
this

■,

'

.

firm.

A normal rise in this three-to-

>

,

k

four-year cycle, beginning at the
middle of 1952, would ordinarily
carry to the end of 1953 or early

!

.1954.

Because

the

preceding de¬
normal, it is
ensuing rise
,will also be less than normal, both

circumstances
offer to buy,
of such securities. The offering is made only by the Prospectus.
only and is under

offering of these securities for sale,

v-'/

►

Mr.

to be construed as an

the

-

seems

similar

cal

field

early

is

veloped before

new

in

many

cycle
de¬

in

field,

sumers'
goods
general shift of

.

administration

as

goods

top

a

began

-

store

vautious

1929-32

in

1951, from which point inventory
ment

are

the

.

The two-year cycle in the con¬

more

same

preceded

uses.

The three-to-four year business
cycle, in the short postwar read¬

or

;

„

Non-Durable

Early 1951

sumers'

drop in total indus¬

12-month period. We

a

clines

time

some

..building,.

_

In.addition, declines from such a
situation have usually been
major
ones,

ap¬

consumers'

goods lines, and a
that has appeared in

Consumers'

v

decline.

compensating

other

some

we have reCentlylong cycle
rise that is likely residential

a-

above the long-term trend.
such a

cifcum-, this

precede

decline

or

to

the

of

1937-38.

decline.

or

on

production, which also
in

non-durable

bottom;" "'
\ "*"■ quarter, - leveled out in 1947 and Hoover
Administration.
Third, the shorter swings, gen¬ reached a peak late in 1948. In
In addition to the two cycles
erally about two years from peak' 1948-49 it showed a decline that
was-normal by prewar standards that are characteristic of general
to peak, or one year from bottom
to peak, that have characterized of timing and amplitude; this de¬ industrial production, I mentioned
the textile business; and
\ cline had ended, - and the cycle
was well along in the
subsequent
Fourth, the very long swings of
rise,: before ■ the outbreak of war
15 to 20 years from peak to peak
ri in Korea. The rise was accelerated
that have

This announcement appears as a matter of record

any

it

stances

,

*

erratic

activity (that is, one that includes
a
year-to-year change of 20% or

can't
always be above average.
Young at the Busi¬ -Inasmuch as these cycle
swings
ness
Outlook
Luncheon, - American Sta¬
are measured
by differences be¬
tistical
Association,
Chicago,
Illinois,
tween moving averages, any proDecember 27, 1952.
"♦Address

Third,
tinguish

climbed

to

analysis of

by either' of these methods
involves, first,, an appraisal of
we

ity and ' the
longed periods of rise

pears

long-

„

omy

--'where

we

from peak to peak or from bottom

likely to follow.
tit

that

pretty well up the

side

between

bottom; justment period of
1945-46, showed
Second, the longer, more basic a deeper decline than in the ciswings of industrial activity, gen¬ vilian depressions of 1920-21 or
erally lasting six to ten years 1937-33. It rose sharply through-

duration of the correction that is
j,

" pro¬

'

■

of

imbalances

clear

seems

to peak or from bottom to

ex¬

a n

caution

changes in activ¬
beginnings of pro¬

First, the swings of general in¬
activity that generally

I

the

to

of

ap¬ "month-to-month

last three to four years from peak

some

first-hand

cycle

dustrial

proaches

and

over

going to

relation
note

a

to," distinguish

business

These four kinds of business cy¬
cle movements are:

talk abcut two
ap

we

own

erience.

p

am

in

provides

textile

term trend, and
embarked

| others, a two-year cycle in

three-year
production

15 points above the

some

two

current

industrial

situation, all past history

current

a
note
of
optimism after
longed periods of decline.

Kinds of Cycles

thinking and

business

these:

after prolonged periods of rise and

peak, although we are
still in the high country near the

the

of

it

climbed

left-hand

of you has

one

v

.iave

swings

past

boom.
This is true of three of
the four kinds of cycle movements
that I want to talk about. In the

propo¬

nents.

tfie

proach,

differ¬

these
are

Second, such observation helps

From

probably all heard about 999 dif¬

of

of

uses

First," the observation of

;

year.

Business cycle theories seem to
run

practical

keeping) track

cycle that has always preceded decline of 20% ormore in industrial production.
Believes boom will last until
mid 1953, with comparative indicators not
heading lower until
\

chief

.

"cyple movements

stage of

,

The

-

the

of

to canty the 12-month
average an
additional. 1j0 .to .15. points above
the three-year
average, or a total

Uses of Cycle

Observation

After

is

is reversed; All indications

that

are

11

no

cline jwas

or as an

probable

NEW ISSUE

to

as

less

than

that

this

duration

The

and

amount.

FRAME, McFADYEN & CO.
25

KING

!

ST.

EM.

W.

4-5161

TORONTO, CANADA

basic six-to-ten-vear

more

*

cycle that is also characteristic of

$18,000,000

general

industrial

clined

much from the

to

as

the

had

early

in

activity

postwar

1929-32.

de¬

lows

The

Members:

toronto

stock exchange

peak

war

it

as

subsequent

postwar rise began in 1947, ani it

P/4% Sinking-Fund Debentures

carried
to

Due

Dated January 1, 1953

Guaranteed

Tiie City

ft"
ju

as to principal, interest
fund retirements by

of

and sinking

this

peak
top.

strong

Montreal

on

the

In

was

clearlv

for

a

1946,
mild

interrupted
setback

in

McLeod,Young,Weir & Company
LIMITED

a

bv

at

1948

of

Members of The Investment Dealers' Association of Canada

■y

1949. This kind of pattern has fol- *
lowed every joint bottom in the
two

is

a

cycles

v

Halsey, Stuart & Co. Inc.

year

arithmetic

can

of

only when

average,

in

average,

:

long-term

described.

It

develoo, from
the

the

comnuta-

current

Direct

12-

and the three-year

turn,
trend.

is

private

pect.

■

a

50
'

January 20, 1953.




J

; *•

all

Exchanges

Off'"-**

'

Situation

Vf.;
wmmm

Head

on

King Street West, Toronto, Canada
Branch

Current Reversal of Favorable

Lee Higginson Corporation.

Montreal and

pros¬

i
!

to

Corporation, New York

Stock orders executed

below the
such a

From

rise is clearly in

wire

The First Boston

.

situation,

(Incorporated)
v

have

dealers in all
canadian securities

month average is below the three-

fjj
\
i ■\
J
".
'■
" '• \
'
'
{•Eastman, Dillon & Co. White,Weld & Co. Harris,Hall& Company
Hornblower & Weeks

I

pattern that

the

'

r

a

early postwar years, the

of

tions.

Hemphill, Noyes & Co.

anv

contrary, it is overdue for

prospect

lows

these securities under the securities laws of such State.

]

cf

sustained rise in activity from t^e

Copies of the Prospectus may be obtained in any State
from only such of the undersigned as may legally offer

;j

ai long,

absence

new

the

worst

Hart

forming

decline.

Price 98.67% and Accrued Interest

sAvard &

level,
In The

external stimulus, this
cycle is not likelv to rise farther-

cycle

Shields & Company

enough

peak level at the end of 1950.

a

flat

(Canada)

•

normally

Since that time it has maintained

January 1, 1973

unconditionally

through

the present time, that favorable situation of the early postwar

Montreal

Ottawa

Hamilton

Offices
London

Winnipeg

Correspondents in London, England

New York

12

The Commercial and Financial Chronicle..

(292)

to wells; the balance purchased. Rev¬ water dispenser, with a record of
enues have expanded steadily and
continuous
dividend
payments
a
lag in the granting of rate in¬ in 1951 for the first time, Califor¬ going back to 1918. Jamaica Sup¬
creases.
However, during 1952, nia grossed over $8 million, and ply serves over half a million
11
rate
increases were,'in due netted over $1 million. Since 1946 people in a 40 square mile area
the dividend rate on the common in
course, granted; but most of them
Queens (New York City) and
has been $2 a share; with earn¬
came through too late in the year
Nassau Counties. The, company's
to have much effect on earnings. ings at $2.71 in 1951.
own wells service
thiS area ex¬
Financing the expansion of this cept in periods of extraordinaryBy taking these 11 boosts, adding
them together, and applying same company has been done by an demand, when the New York City
There Water Department furnishes an
for the full year in 1953, reason¬ assortment of preferreds.
dividend

This

needed

Water Stocks
By IRA U. COBLEIGH
Author of

A fluid

account

of

a

"Expanding Your Income*'

our oldest
service—water.

From

the

dawn

of history

and

before, primitive man slaked his
thirst at the water holes of ebony
Africa,

drew

of

buckets

water

from the

Nile,

from which he

drank, or iri g a t e d his

r

fields; and the
of

waters

the

Tigris
and
Euphrates
nurtured

our

earliest civili¬
zation.

There

numerous

are

Biblical

ac¬

counts of peo¬

gathering

ple
at
Ira

U.

Cobleigh

of Palestine,

filled

their

,

few of the remaining privately-owned'

companies which provide

life

sus¬

taining wells
in the villages

where they not only
earthen
jars,
but

and most vital utility

is interesting on two

dip

was

due

property,expenditures, and

counts:

ably accurate slide rule readings

are

five series

traditional earnings sta¬
bility of these pump and pipe
dividend payers has made them
good long-term investments; and
(2) the steady advance of munici¬
pal ownership suggests, in certain
cases,
the romance of possible
capital gains from sale of oper¬
ating properties. Because a city
can borrow, at low cost, through
the sale of its tax-exempt bonds,
it has a useful gimmick for fi¬
nancing purchases; and water lien
bonds, whether of municipal or
private issuance, enjoy a record
for promptness and regularity in
meeting principal and
interest
payments, that is both faultless

would suggest about 35 cents in¬
crease in per share net after taxes.

the

common.

now

(1)

the

ain the West and
are

two

or

on

the dividend drum.

so

with water.

population

Over 95%

get

that

by

of

our

paying

taxes, not bills for it.
For this

water

reason a

companies

look at private

securities right




same

ahead

of

features

conversion

durable

water

additional supply.

As of June 36,
1952, debt was $9,195,000; and
21,600 shares of $5 preferreds
preceded 162,631 shares of com¬
mon.
Annual per share earnings
are running
about $2.60 against
present dividend rate of $1.50.

company with a
growth curve. For the Current quotation—$30.
Labor and wage
costs, which,
company's Birmingham property common stockholder, the worst
drawback is dilution through pos¬ usually run around 25% of gross
was sold in 1951, and some nego¬

plant sales to cities, the

About

tiations for South Pittsburgh Wa¬
ter

were

carried

on

this

year,

The general prac¬

without result.

be for

city

tice

now

to

somewhere between 120%
150% of book values, when

seems

to

a

pay

and

favorable

sible conversion of preferreds. At for water companies, are prob¬
32, paying $2, California Water af¬ ably subject to some upward re¬
fords a creditable and reasonably vision
here, as, while this is
reliable yield. California law per¬ written, operating employees are
on
strike.
mits cities to buy out, or compete
with private water companies; and
If the foregoing has whetted
units producing over 40% of the
your thirst for water stocks, you

acquiring water properties. There
have been some dazzling buy-ins revenue of California Water are
may want to look up some others
however. For example, South Bay possible condemnation bait.
and defaultless!
Water or
Consolidated Water preferred was
New York Water Service Com¬ such as Northeastern
Best place to start is with the selling
around
$6, and hunch¬ pany was recapitalized by an ex¬ Scranton-Spring Brook Water Co.
biggest — American Water Works backed under a boat load of back change of preferred (with back
There are really very few left but
Company Inc.
This corporation dividends in 1949, when all of a dividends) for common in
1947,
was
created in 1947 (in compli¬ sudden the community served de¬ and an 8-for-l split of this com¬ they do offer special opportunities
ance with the Public Utility Hold¬
cided to buy. The stock shot up mon in 1950. Present quotations for capital gain not found in most
ing Company Act) to acquire the to over $200 a share—so substan¬ of $46 a share for a stock
paying operating utilities, and they pre¬

Northwest,^ $107.9 million of subsidiary bonds,

privately owned and run. Not

of

Four of these have

permitting a
That should provide some cushion switch into, variously, from .931 of
for present distribution rate and a share of common down to .850.
Here is a fine example of a
might even throw another dime

gleaned and transmitted the news
spice of the day. Gossip by
bucketful, you might call it, wate^r companies in the old Amer¬ tial was the indicated sale value
but
it was primarily thirst for ican Water
Works and Electric of this
property!
Final redemp¬
water, not for news, that created system. It now supplies water for tion in 1951 was $215.90 a share
these pre-tabloid gatherings.
lips, laving, shaving and bathing —$100 face amount and $115.90
This scintillating historical ref¬ in 71 cities in 19 states, having a back dividends. There was, I be¬
erence is merely to point up the
combined population of 2,750,000.
lieve, some litigation about all
fact that water is indispensable; Biggest
operating
units
serve this; but meanwhile any holder
that it has ever been (and must Chattanooga,
Tenn.;
Pittsburgh, lucky enough to make that mar¬
be) provided; and that private Pa., and Peoria, 111. For 1951 resi¬ ket swing didn't have a water
enterprises which distribute this dential sales, overall, were 46%, stock—he had a geyser!
fabulous fluid to us for a fee, commercial 22%, and
industrial
Disregarding such fantastic fi¬
possess a business of unexcelled 17% of consolidated gross, with nance, the earnings of AWK ap¬
the balance
stability.
going for watering pear substantial enough to support
It is, of course, well known that, streets and putting out fires.
the current dividends, yielding at
of all our utilities, water service
AWK differs from others we'll 9% 5.1%; and sales of portfolio
has most completely found its way talk about
today, in that it's a property, if made at 130% of
into public ownership. Gas, pipe¬
highly leveraged holding company book or thereabouts, could con¬
line and telephone services from (water
companies
are
exempt ceivably create interesting over¬
coast to coast, are owned by stock¬ from SEC
regulation). Thus its tones of capital gains for patient
holders; and producers and dis¬ 2,704,472 shares of common were shareholders.
tributors of electricity, except for
preceded (12-31-51) by $20.3 mil¬
My next aquatic entry is Cali¬
TTr *. and certain big water power lion
of
subsidiary
preferreds, fornia Water Service Company,
and

the

.Thursday, January 22, 1953

serving

plus $15 million of AWK deben¬ sections

some
near

670,000

people

in

Los Angeles and San

tures—altogether $1|3 million in Francisco.
Largest] communities
the corporate conga line ahead of are Stockton, Sbuph San
Fran¬
the

earning around $2

seems sent substantial resistance and de¬
ordinary fense
against earnings slippage.
standards and appears to be ac¬
Not spectacular, perhaps, but not
counted for by. the possibility of
favorable property disposition.
dangerous, either, these water
a

little

out

line

of

by

This company
sprawls a bit,
serving the Woodhaven section of
New York City; communities on

Long Island including Glen Cove,
Huntington, Hempstead, Sag Har¬
bor, Centerport and Oyster Bay;
Haverstraw on the Hudson; White
Plains (wholesale); part of Ro¬
chester; some towns outside of
Syracuse and, through a subsidi¬
ary (Western N. Y., Water Co.),
the city of Lackawanna, N. Y. Most

stocks.

George V. Hunt With
Terry & Company
George

V.

a

in

it's

Rochester

lake

New
Hunt

—Lake Ontario.

cisco, East "Los Angeles and Bakersfield.

common has paid regu¬
lar dividends: 60c a year for three

1948, this

Residential

sales

are

trading de¬
partment. He

the

of

The

common.

finds

here

meager

dividend

attractive

gains

&

buyer

rewards from

angle;

the

>*

■

*

Supply Company
operating

old and successful

a

in

e n

the

former

t

es

of

Traders Asso¬
ciation of New

York

and

dent

of

Traders

in the past was Presi¬
the

Corporation

Bond

Club.

'

■

Underwriters; Brokers ami Dealers
distributing

long experience and nationwide
o|URcontacts
are available to

CORPORATE and MUNICIPAL SECURITIES

corpora¬

tions

seeking wide "distribution of

new

since 1886

}'

Jssues among substantial investors.
•

9

Y

1

qAllen&
Established 1922

C

W. £. HUTTON & CO.

f-

'

>

.

r

■

Members New York Stock Exchange

and other- leading'exchanges

JfEWYOR^
CINCINNATI

NEW YORK

Philadelphia
Lexington, Ky.

Baltimore<
Easton, Pa.

i-

the

Security
George V. Hunt

works—water works

is!

Co.

Vice-Pr

exist,

own

an

but
for

potentials

Jamaica Water

is

rt

with

merly

shares

that

Financing

r.

for-

Starkweather

to

(/borate

M

was

Capitalization is quite simple—
$14,875,000 of bonds, and 372,256

d

in

York

City.

water

since there are so
over 75%.
80% of the water de¬ many separate communities that
then 50c for 1951 and 1952, livered is from company's owned might, at some future time, want

issuance

Terry &

Company, 4A
Wall Street,

is

Since

become

ssociated

with

of the water is from driven wells,
but

has

Hunt

maybe
capital

common.

years;

80c and

Boston-

Dayton■

Portland, Me.

-Hartford
Lewiston, Me.

Volume 177

Number 5188... The Commercial and Financial Chronicle

13

(293)

material

raw

The Dollar Problem and

in

Asserts

been

pre-

confined

The

ing

occupation of the world with the

linked

acute

production

an

problem

even

ic

of

dollar scarcity,

important

more

not

-0^% ?'

■

it

'

Y

is

''

'

of

iy

'

1 "l

M

'

has
r"

going on
for
a
long
timei, sihce
World

Dr. Paul

choice lies between reach¬

this

adjustment

War

greatly

accentuated,

with

industries

of

com¬

the
the

to

compete their

feel

impelled

more

indus¬

protect

tariffs and import restrictions.
The

result

this

trend

time

same

a

of over-production in
the

.

at

termination

to

reduce

their

de-

pendence on industrial countries,
/ The sudden efforts of industrial
countries

to

raise

their

standard

of

their

now

At

tend

re-

national

in the

resolutions

of

monwealth

Economic

the

recent

Heal wages were raised.

This, to-

-gether with increased social
ice

benefits,

resulted

in

frr,m

serv-

an

in-

daJneaHc consumption in

HuS

industrial countries which left

adequate

margin

of

•

W^S

though Britain
example to
ion
other

is

gently needed

ciently
exenuy

low
iuw

this

ciently early date.

and
ana
To

other

uuier

at
at
at

tion

of

material

m

suffisuffisum-

offm
lies

cause

a

Raw

I-

material

livraw

produc-

!

J

the

va

point of view of world econit would ^ much more ad-

omy

a

Vintaf*pnus

if thev

toeif energit

wprp

tn devote

ar^crease

to
their production of food and

"?stanc® *ack

materials.
WOuld

producing countries.

Consequently the last few

man-

immediate

in£? countries feel that their salva, •••
•
v.
^
tlon lies in industrialization. From

ur

a

in

Although

thp

higher standard of
than the production of

jng

prevented the satisfacthe requirements of raw

witnessed

solution.

wprp

materials.

ur-

a

indus

of

npvprthplpss

trend

secure

large extent the United States provided an

€gC5Pn10n'
of dollars

the

view

annpnr

jn the fact that industries tend to

situa-

countries

and

goods

price

dicates

of

it

caP!~ dustrialization the basic

outstanding

industrial

4

noint

nfarturps

concerP^dAlan

illustrate

equipment

+i

the

rnilnW*

mnv

pOStwar shortages of certain

no

similarly unable to deliver

capital

trial

thi*

a*

years

not

Since,
provide

standard

of

with

of

that

however,
them

living

rf

raw

this

with

a

comparable

industrial

to

maintain

that

reason

in

order

to

their

present
high standard of living, must insure an expansion of raw material
production with the aid of higher
prices.
—

of

such

some

disinflation

and

other

received

nQt

attention it deserves.
utmost

industrial
this

countries

that

should

immediate

that

and

^

Yet it is

importance

problem

eration

of collective

arrangements.

topics of immediate interest this

,^11^)e^ev® ^at the two major

challenges facing the new Adminlstratlon as the year 1953 gets under

way

are:

how
—

(1)

best
—

.

peace

give
be

the

latter

maxi¬

produc¬
tion, full em¬
ployment and

mum

ficiently tempting terms to make
for

the

on

scene; and (2)
how to main-

consid¬

a]?,?e *n
ihimediate future to
offer raw material producers sufwhile

to
-

international

tain

worth

to

abstain from further industrializa-

labor relations

tion'or aTany"rate"tcHlow

harmony

the

of the

nace

down

the

orocess

*

.

,

as

a

standard

equally
portant
two
c
vv
w

6fess ^scone*1?or

production

than

should

in

not

in

itself

industries
justify the

claim of industrial countries for

higher
benefits
wipal

of

living.

of

standard

scientific

nrntrre^

and

chonlH

Hp

a

The

technoshared

loSlcal Progress should be shared
evenly by those engaged in
nwViiietinn
anH
raw
raw
production
lndustnal
Production and
material production.
A situation
more
•

,liefr5a.

XTlHhprrP«tPH^

a

result

of

in

which

that

raw

material producers

of

by

their

increasing the efficiency
production they could

their

standard

countries

of

living

as

im¬

as

the

are

in-

extricably

in-

We

cannot

maintain

unity with our allies abroad if we
suffer from strife and dissension
at home.

goods

We cannot produce

needed

abroad if

our

by

firm

my

this

nation

the

industrial

plagued

need

us

so

is to

unrest

be-

industrial

conviction
not

the

friends

our

economy

bogged down by

come

suffer

which

often in

:

should

be

to

project

and promote such collective bar—
gaining.
I

that

believe
is

strike

democratic

our

This

labor's

right to
right in

fundamental

a

right,

capitalist system.

however,

other

like

basic American rights, is not ab¬
The right to strike should

solute.

be protected by Federal legisla¬
tion, but should always be subject
to restrictions where its exercise
would

unduly endanger the pub¬

lic welfare.
I believe that the

major role of

the Federal Government in labor-

management
to

encourage

relations should be
wider cooperation
in

between labor and management

improving working conditions and

that
from

has

the

past,
vigorous

Hp

in

veloping between them the r ow
codes of lair practices,
I believe that it is the respon-

sibility of the Federal Government to
protect the industrial
worker and his family, as free
American citizens, from exploits-

tion by either big business or b.g

labor unions,

with these
and

both

a

principles
will

real

and

labor

on

as a

the

industry

basis
of

part
to

de-

Fair,
intelligent
and
velop an effective program of coleadership can, I am sure, develop operation,*1 have faith that Amera
labor-management partnership jca can meet the great challenges
capable of meeting the demands which face it.
of this critical period.
Let me •
outline my own basic beliefs in
H. B. Cohle Adds
connection with
the
subject of
(special to the financial chronicle)

labI°rbSfenvegeSlf collective

should be created as a result oi
an adJustment ofirelat.ve prices, gaining

would have every reason to hope

field

;ment

anH

ter-related.

;

.

..legislation in the labor-manage-

The

first, since the

H. Alexander Smith

^ production of manufactures conflict.
It is
*act that there is less scope tor
mechanization in raw mater,al

on

second taSk is

chance to raise their

nations a^ over tke world that
production of raw materials is an
inferior kind of activity compared

■;

j

home

front.

of

new

and (2)

bargaining.

achieve world

of

the

they should

facing

employment and labor relations harmony,
prime objective in labor-management field is promotion

says

possibil¬

Owing to v the prominence given
to questions relating to convert-

the

Labor and Public Welfare

maintenance of full

Conference

in London dealt with the

ity

on

peace,

a

exportable

espeJlally as far as

were

' npnlorahlp

stands

countries,

Senator Smith, asserting two
major challenges
■Administration are: (1) achievement of world

Com¬

were largely responsible and other
primary products, sim- their industries. The conception
high prices of industrial ultaneously with a
falling trend in which is at present deeply inproducts and for delays in deliv- textiles and other manufactures,
grained in the consciousness of

the most needed articles.

It

industrial

U. S. Senator from New Jersey

countries, insuring them
steady market at such prices
over
a
long period. One of the

living

in

mines.

relatively

be able to

Chairman of Senate Committee

a

for both

eries

and
unproductive

expand arable land

work

,

living, through inrising trend creasing their raw material proprices of certain foodstuffs duction
as
through developing
that there is

addi-

to

By HON. H. ALEXANDER SMITH

to

energies on the
production of such materials. This
means

the

while to

Objective in
Labor-Management Field

as a re-

!

material

material

raw

producing countries

the

Our Prime

a

°f orderly arrangements unwhich industrial countries
a^r,ee ®
pric<rs
,raw

it

is

lines of manufactures.

many

the

of

and

der

govern-

to

reaching it

or

hag

to

products

A situation must be created in
reasonable prices stim- consume
more of their own
raw
which raw material producers
a great extent their dematerials, while concentrating less cou^ feel that they stand at least

ulated to

of

successfully

are

instances

many

1jnmediately.
after the high degree
raw material produc-

liveries of much-needed manufactures

pete

dur-

countries to obtain early de-

ing

in

ments

the

oy

new
new

able

through

social and political

Percussions

ibility,"

tJTpir niw^ .industries
inHiSrivi irp
industries
are

-

them by means of high protective

'pie difficulties experienced
and

U

mg
in
countries, their
their

unable

Einzig

War

become

Owing to the

trial countries operating on a basis
of higher wages. Where they are

progress

has

industrial countries.

efficient

second

s

M

.

the

been

the

the basic produc¬

They are
simply rivals to the correspond¬
ing well-established industries of

A
:

Al-

process

whole

a

■

producing
though

1

: •*

■

:j. .it

material

countries.

as

con-

tion of these countries.

Y

raw

countries

world

with

connected

"

&'

indus¬

trialization

the

material

raw

the

by it.
To a very large extent however,
the industries developed were not

h"^k

v-.'c'

problem

the

of

'.;"#■

de¬

It

serves.

the

the

of

would have stood to benefit

re¬

ceived the at¬

tention

it

cerned

econom-

problem

has

with

in

living all over the
larger quantities of

series of violent crises with grave

industries

the

to

of

rise

world calls for

bring primary

of industrial countries.

or

Amidst

—

will

standard

the

the

economic,

Eng.

or

old

event

any

——

rise because of scarcities.

LONDON,

Sooner

between

In

bound to change to the detriment

materials

raw

crises.

without having to resort to industrialization.

prices of manufactures tional quantities will not be forthscarcity of raw materials coming unless prices are suffiwill
secure
high raw material ciently tempting to make it worth
prices.
The terms of trade are

later, competition will bring down
prices of manufactured goods, while raw materials prices will
sooner

very

while

on

rather than using their energies to increase their

a

culminating

industries

new

down

By PAUL EINZIG

of

competition

and

problems of raw material producing coun¬
tries, Dr. Einzig finds low prices are leading these countries
to develop
secondary industries to consume their own products
output.

series

a

later

This

threat of

disequilibrium

grave

Raw Materials Prices
In commenting

production.

trend carries the

and

private

best

way

wages

The

bar-

CINCINNATI, Ohio-Edward O

Huey has become affiliated with
is the H. B. Cohle & Co., Union Trifst

between free labor unions

to

and

prime

management

solve

disputes

working

over

Building, members of the Cincin-

conditions, nati

objective. of

and

Midwest

Stock

Ex-

Federal changes.

spectacular expansion there is bound to be a temptation
secondary industries all over for them to choose industrializajthe world. If the expansion had tion rather than an increase of
t

a

of

New Issue
s

-/

$8,000,000

75™ ANNIVERSARY

United States Tobacco Company
3%% Sinking Fund Debentures, due January 15, 1968

Servicing
Brokers and Dealers

This announcement

Since 1878

appeatl for purposes of record, the financing

having been arranged privately through the undersigned.
\

\

\

A

ASIEL & Co.
Members
v'.i's.

11

New

Members

Wall Street

Telephone HAnover




York

American

2-5000

Stock

Exchange

Stock

Exchange

New York 5, N.

Union Securities
Y.

Teletype NY 1-1110 A NY 1-1111

January 21, 1953

:\

Corporation

i

.

'

i

The Commercial and Financial Chronicle...

14

Thursday, January 22, 1953

(294,

get you to buy stocks.-1, however, Truman Doctrine, or the European
suggest you ask your broker these aid, that was to become known as
the Marshall Plan, were master¬
rowed money, much Of which has two simple questions:
ful
strokes
or
been
anything of the
spent on useless war.
In
(1) Are stocks cheap today?
kind.
1914, when World War I started,
(2) Will they some day sell 100

Stock Maiket Piospecis
By ROGER W.

BABSON

Hoover's election in 1928 the In¬
freely admit that a great
dustrial
Averages went up
100
change is taking place in the gov¬
within ten months, but
ernment of this country. Not only points
then fell back over 100 points in
did the country give Eisenhower
only one month!
a
"landslide"
I

,

.

victory last
November,

Repeat Itself?

Will History

It has been built on bor¬

debt

national

our

billion.

$2

and

built upon honest work

been

savings.

than

less

was

it is over $250

Today

But what strikes

points

below

quotations?

present

brokers

Most

is

honest, even
■
,
When wearing rosy glasses. Get a
Republicans will continue
"Yes" or "No" answer—then use
the Truman finance, they- prob¬
,
,
•
t
ably can keep tne balloon inflated your judgment*"
•

billion.

are

few

appointment ing
of

so

many

only

businessmen

term.

high offices
made

has

and

them
Roger W. Babson

These
the

friends
to

word

bought

liave

their

friends

very

bullish.

passed along
friends, who

have
other

stocks

at

an

un¬

fourth

the

50

year

ture,

not

know,

latter.

If

but my guess is the
when these friends

so,

big shots begin to sell, who
A stock mar-

will be the buyers?

3ket

can

as

fast

it

can-

climb.

na¬

to

Who

Waiters

What

time.

a

made has

tience.

been

was

decline

happen

now

can

America's

the

controlled

richest

"Big

men.

Hoover

and

Business"
Adminis¬

tration.

truth is that the pres¬

The sad

After ent

period

of

prosperity has not

For

the

students

history it strikes
be

cently

for

You

looking into the

litical

obitu¬

ary

about how

he

may

been

Presi¬

ease

the

say

what

didn't

He

time, I think I

can

truthfully

become known

to

Carlisle

happens,

so

•

PHILADELPHIA

DU

PONT

—

generally.

STOCKS

That

this

rather

WILMINGTON

is

anparently

interesting

of

Govern¬
spending which was a part
the very foreign policy which

is

said

caused

eyes

hundred

a

will

as

their

cock

COMMODITY EXCHANGES

—

BONDS

—

COMMODITIES

IN LOCAL SECURITIES

Preferred

Wilmington & State of Delaware Bank Stocks
NEW

YORK

OFFICE

—

120

BROADWAY

Be'l Teletype NY 1-1218-49

Telephone—BArclay 7-3500
PHILADELPHIA OFFICE

—

DAY, STODDARD &

downright genius,..for¬

statesmanship,

LINCOLN-LIBERTY BLDG.

Telephone-*—LOcust 7*6226

.

years

now.

and

DELAWARE

by

been such

historians

took

&

Christiana Seturi'ies Co.—Common &

There

the inflation which

admiration

99,

8-4241

STOCK EXCHANGE &

YORK

STOCK

SPECIALISTS

about. But this inflation was

to have

NEW

PRINCIPAL

we

95

ELM

WILLIAMS DIVISION

ST., HEW HAVEN, CONN.
TELEPHONE

are

5-6151

told, for Truman to go into Korea.
This insoired the peoples of all
Asia

and

them

caused

take

to

a

renewed hold on the torch of free¬

Strangely enough, it

dom.

was

his

going into Korea that, in my opin¬
ion,
had more
to do
with his
party's being repudiated than any
other

Mclaughlin, reuss & co

this

MEMBERS
NEW
AMERICAN

YORK

STOCK

STOCK

COMMODITY

Nevertheless,
it is in¬

single-issue.
going

into

Korea,

EXCHANGE

credit

will

and

the

(ASSOC.)

writing
along later.

EXCHANGE, INC.

There

is

be

so

marked by

that

gentry

BOND BROKERAGE SERVICE

the

to

was

getting

into

Korea,

formed

Specializing in Public & Stockholders Relations

effect

that

NEW

YORK

5

of

Telephone




HAnover

2-1355

,

Secre-

State, Dean Acbeson
to

that

some

be

extent,

wanted

despised the Commies
the ret of

was
bv a

to

show

as

much

episode

Truman's

were

part,

Laurence M. Marks & Co.
Members

us.

aside, other
outstanding marks of achievement
this

UNLISTED TRADING DEPARTMENT

advisers,

his

as

on

Teletype—NY 1-2155

that

he

But

SECURITIES

he

he
when he went
be was misin-<

military

his

by

furthermore

tarv

motivated,

STREET

into
that

and

feeling

and MUNICIPAL

comes

didn't know just exactly what

WALL

RAILROAD

plenty of information

available

ONE

INDUSTRIAL, PUBLIC UTILITY,

sisted, should be marked up to his

EXCHANGE

we

are

told,

American

49 Wall

Neiv

Stock

York Stock

Exchange

Exchange (Associate)

Street, New York 5, New York

his masterful strokes in the

"Truman

doctrine"

for

spending

hundreds of millions for the relief
of Greece, and the "Marshall Plan"

Telephone HAnover 2-9500

man

national state of mind is some¬

now

speaking

titude

our

the

as

BUILDING

MEMBERS
OTHER

ment

It

SYRACUSE

•

un

Laird, Bissell & Meeds

his association with the CIO,

inescapably

.

on

it

A

in all sorts of skull¬
the home front and
with "bold strokes"

of

sort

judgment about.

of course, and

HARTFORD

duggery

re¬

abroad.

billions

engage

cover

\

manifestly one's" stature
if he has engaged in war

sent

can

TELEPHONE

what

just

that it is all
over, there is little to hold against
the man's domestic policies.
He
never
accomplished them. They
did no harm and they did no good.

in

uo

their wives.

or

Bargeron

mental attitude it is that brings

from

goes
or

little is to be heard

over;

which to meditate.

to the extent of his
ineptitude being over¬

this editorial

make

Well,

peace are

in

wonder

You

came

'

Presi¬

The

during

that

respect

am

books.

and

down

history

was

skipped

about them

the

at

know

school

the

and

domestic

I

in

dents who served

thing?

was

war Presi¬
outstanding

bril¬

go

It

want to

you

cord, that either the aid to Greece,

he

liancy

a

the

was

back

on

overseas.

the in-

up until
II, always

was,

War

on his part.
You
through history and
according
to the historians, were our Presi¬
dents during wars.
They are the
ones
the kids read mostly about

with which he exercised these

strokes.

national

e r

this

CLEVELAND

to

the greatest Presidents,

shadowed.

.

regard

accomplishment

European countries.

can

Wilson

That

dent."

you've got to admit that in
foreign policy .he showed some
superb strokes of statesmanship.
If,this is true it is amazing the

have

on

on

in

BUFFALO

in

man

President," "America's

but

pretty

a

will

Telephone: HAnover 2-4800

mediocre

a

referred to reverently as "our war

deep freezes and the mink coats,

po¬

courage

•

a

we

Then he

World War II.

the time of World

the political obituaries say, about
his crony Vaughan, Caudle,
the

to Mr.

Truman's

showed

r>

as

about Truman's domestic policies,

re¬

been

devoted

t

BOSTON

was

until

controversy

Similarly, there is
tendency to look upon Truman

a

spending billions for the relief

of other

there should

thousands of words that have

scene

Broadway, New York 6

Roosevelt

D.

became great.

pa¬

"Patient

BARGEROI^=

American

of

me

second

some

A

65

Franklin

go

By CARLISLE

but

Union.Securities Corporation

is

does

-......

.

went into

the News

domestic front

Equipment Trust Certificates

man

a

measured

tremendous

Washington

A head

dent

Investment Preferred Stocks

It

be, his test of great¬
by his foreign

may

outlook.

Woodrow

From

poor

Corporate and Municipal Bonds

our

away

nations.

country, what his domestic

is

ness

again,

stocks

of

giving

foreign

affairs, but in world af¬
fairs, he was superb.

nically, the stock market is now
in a sound
position, but this is
not the reason people are buying

one

by

domestic

primarily because very few stocks
are held on
margin today. Tech¬

brainiest

has almost impov¬

us

policies

Never Losers"?

are

great if he has led

or

apparently not what

I

money

through

it said:

as

to

in this

strange'

as

war

wealth

This does not mean that such a

tumble from present prices
as

by

are,

They must try

bullish.

such

have

brokers

Successful

of his

today. The reason is That
precedented rate. Naturally, stock they believe that "Big Business"
prices have been going up and has at last taken back the con¬
will continue to climb as long as trol of our country. But if this is
this buying exists.
true (which I doubt) it is no rea¬
Have these Republicans bought son to buy stocks for speculation.
tor investment or to sell again Hoover selected as his Secretary
eoon
at a profit?
Frankly, I do of the Treasury Andrew Mellon—

«f the

ing

Market

been in office six

successful

to

after Hoover had
months, sold at

350

above

Making Money in the Stock

me

apparently become

part bf our nature to re¬

erished

more.

has

man

a

into

us

If, however,
It is entirely possible that the
but
E i s e nStocks rallied again during the they start to operate in an honest stock market will go higher; but
way—as did President Hoover and
this possibility does not interest
bower is now first
part of 1930, but in April
Andrew Mellon—by reducing the me.
Based on all previous his¬
giving "Big began an almost steady decline
Business"
a
until, in 1932, they had fallen a debt, discharging government em¬ tory, I know stocks will some day
and urging economy, sell 100, or perhaps 200, points
"1 a ndsilde"
total of 300 points from the 1929 ployees
stocks will surely have a bad fall. lower..
I'm
stock
market peak! This means that the Indus¬
putting
my
hardearned savings in the bank await¬
in return. The trial Averages, which were sell¬
years

it

fixed

a

gard

If the

a

that

Teletype N.Y. 1-344

upon

Volume 177

Number 5188... The Commercial and Financial Chronicle

(295)
if/

v

different—sound or unsound. And lieve both volume and profits will time 16 time depending
it is* more likely to be unsound, be more than well sustained. The
ernment policy.

Road to Serfdom Blocked

qangpr'!
present indications are that the
Thus political change, as I.see it, automotive industry will have a
enormously
increases
manage- better year in 1953 than in 1952.
ment's responsibility both to it- Neither do I believe we shall ex-

Chairman of the Board of General Motors

self

repudiation of a socialistic economy, Mr. Sloan warns, however, the clock must not
be turned back, since industrial management has much to learn
from socialistic experiments of past 20 years. Says manage¬
realize its increased responsibilities as well
opportunities, and should work for economic stability.

and

to

free

*

its
Fore¬
sees
new
vistas of opportunity resulting from tremendous
increase in scientific research. Looks for good year in 1953.
as

a

perience

November.
"•

*

..'

We

The 4th of November was a ership.
And real leadership they
happy day for me. I have been have found. The road to serfdom
waiting with impatience and has been blocked.
A socialistic
growing apprehension for some- economy recedes into the distance.
thing like Everyone who believes in the
twenty
years American way of living, in opfor that event portunity and in the freedom of
to happen.
It the individual, has a right to give

shall

mistake if
diet

4.

XT

make

income such
a

-

for

..

capital
-

condition

a

forecasts

decline in national income.
,

ver-

It should be looked

It is
..

,

.

tailment in capital goods, Teflect■ eveiJ a moderate |>eripd .of. dd-

opportunity to demon- Part, on the scope of the changes
industry, in collabora- adopted by the new national adwith a national administra- ministration and
the extent to
an

strate that

tioh

-

effort never proceeds, whatever hard for me to see how business
its trend, along a straight line. I spending can continue at its presbelieve that the magnitude of this en<: rateadjustment will depend, m large
.same ""je, a snarp cur

upon more as conditional—as pro-

viding

spending

.

year.
We must remember that human

serious

evaluate that

we

final.

as

most

a

Business

a

ity in the following

•

.

verdict Not Final

.!

Expect Decline in New Capital
Outlays

major recession in 1954. S°°ds continues, as we all know,
But I do look for what I might on a ve^ high level. Since the
call a period of adjustment in that war> business has spent something
year, or in 1955.
This will pro- like $150 billions for this purpose,
We all know that when the* ratio
vide an opportunity to consolidate
of spending for capital goods de¬
our gains preparatory to moving
forward to higher levels of activ- clines in relation to the national

society. And,
concurrently, it expands industry's
opportunity to serve the people,
Such are the implications that, to
me', stand out crystal clear as a
result
of
what
happened
last

as

ment must

UDon eov-

There lies the

By ALFRED P. SLOAN, JR.*

Hailing the national election results

15

4,

^

tion of intelligent and experienced
personnel, and supported and en-

^tm"fpnut lheLise

which they

serve to improve the
take nTace
climate in which mdus- ™atu mJ§n*. otnerwise taite piace.
couraged < by forceful leadership
try operates. Opportunities for ^ should^ be avoided. Here is one
is well said thanks.
Y
can insure far
greater and sounder constructive policy changes exist opportunity for industry to make
that the only
But what does this mean to us
social progress in a free society in abundance. They can have an a?. effective contribution to sta~
certain thing of industry? It does not mean that
where effort is unrestricted than important influence on what will bility. Let us consider the
long^
i n
1 i f e
i s we should set the clock back these
in a society in which the essential happen as compared
with what t™.rnatheTr ,thfc
change. But I
.

was

to

.

.

twenty years. We know better
feature is bureaucratic control of might otherwise happen.
beginning than that. It certainty does mean
economic activity. I believe that
Two major factors stand
wonder, that industry has much to learn as
a
a result of the
experiments Of
those twenty years. Management

Nevertheless,
it did happen,
And with a

has moved far afield from the old

b-a-n-g! In - concept that its opportunities arid
competence, responsibilities were limited solely
Sloan, Jr.
dishon e s t y, to the production of an expanding
: ' ".unwise
taxa- flow of goods and services. It has
1

Alfred P.

economic

i

out through 1.954 or 1955 into the imimJ?a 5
ing the next four years is of vital portant influences in our present t"ls> new vlstas °* opportunity
consequence. I believe that a sue- economic activities and those of °Pen UP on. a wlde troiit.
cessful demonstration of that the next few years.
One is govIncrease in population, redistrithesis will determine to an im- ernment spending for armament, button ot population, a neaitn^
portant degree, the future status The other is business spending for climate for industrial activity, re-»
with particular emphasis

demonstration of this thesis dur-

as

rehabilitation and expansion. I
do not believe that industry yet

newed confidence in opportunity
and a huge backlog of demand foj

The concept of an economy, mo- fully appreciates, or is effectively
a prime com- tivated by inflation, war or its organized, to give recognition to
electorate that ponent of a society which has a
equivalent and other synthetic in- the fact that the politicial consefinally recognized the facts and right to demand and will continue cehtives as formulas for social Quence of having lost the peace
adequately discharged; its respori-' to demand that management take

schoolis, hospitals, hig^
other public construction present

-

•

tion, group discrimination, planned learned that it is not a law unto

of

free

a

society

as

inflation and •the like have been itself, but is rather
fepudiated by

rViUilrMnn-

.

an

Jifiro' /sf

Wa'

rfs

thoT

riant:

tr

crt

is

iprogress

that such

in

uted
,

Of?ean

rity.

,.

Our people demanded leadj

*V

.

"GMMo'torlma
York

.

stability.

particularly

And

must

of expediency and- medioc- management insure
stability, for

—IT"

1

oM953"

oi

it

is

clear

that our people- will
again accept the hardships

never

,

LvncKaon, New

City, January 19, 1953.

artificial.

part to

an expansion of
That can hapit is equally true that
measures
are
expedients of

economic activity.

But

pen.

such
the

moment

and

Right there I
our

Underwriters, Distributors and Dealers in

Corporate and Municipal Securities

new

Institutions

and Dealers in

Corporate Slocks and Bonds and Foreign Issues

the

can

CO.

Members Nsw Yer',: C'.ozU [/■change and Other

Exchanges

do

we

istration
staff of

"

Teletype: N.Y. 1-210

this

more

all.

things

Keyser Building, Baltimore 2

Tel? National 2545

Tel: Lexington 7861

of

us

now

can

is,

our

f^rch. We ka0^
c;

forces serving to expand

°f

Its influence

see.

activity, for it creates*
Continued on page off

dn economic
to

be

activity will continue economic
important—changing froni
■

Thi-s is not

offer

an

to

offering of these Shares for sale,

buy,

any

or an

offer to buy,

or a

solicitation of en

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

500,000 Shares

as

an

Southern California Edison

Company

syn¬
re¬

Common Stock
($25 par value)

Our national admin¬

in part, the general
society. Hence of busi¬
businesy^stands

pre-eminent because of its
Eye St., N.W., Washington 6

portant industry—munitions. Unfortunate as it is and burdensome
as it will be, we must carry this
load as far into the future as any

country

for the
which have

American

ness.

and im-

seek

worthwhile

substitute

methods

any or all of these things is the
expansion of fundamental knowl-

on a per-

new

accomplishment

constructive

do

a

cently prevailed.
Our country is predominantly a
business society—as .business goes
so

STREET, NEW YORK 4, N. Y.

Telephone: HAnover 2-0603

of

made

great, making it

thetic

8c

to

the establishment,

manent basis, of

be found to reconstruct

has

adequate

IRSCH

an

was

tnemseives.
[ But
11 far more significant thai*

confident that

am

administration will

incentive

which

to

1636

the

recognize the innumerable
opportunities for constructive
ctiange in all the component parts
of
government, especially those
affecting the national economy in
which industry is so vitally con¬
cerned.
I
am
sure
ways
and
means

25 BROAD

unsound for

out and

p

7

to

true

long -term. They must come to
desperation, demand something
end, 'sooner or later, or lead
disaster. Then what happens?

in

Net Markets

is

It

have contrib-

measures

?f a severe depression. They will,

.

;

have

we

known it in the past.

Price $37.75 per

compe¬

share

tence, imagination and aggressive¬
ness.

If this be true of the

busi¬

structure, why should it not
equally essential for the gen¬

ness

LONDON, ENGLAND
Direct

Wire

—

Representatives?

Service

—

New

Offices:

York,

GENEVA

•

AMSTERDAM

Washington and Baltimore

be

eral

,

staff

business?

of

the

The

tration

nation

and

of

national adminis¬
important degree,

is, to an
major policy group of an enor¬
mous
aggregation of individual
business enterprises.
It is both encouraging and grati¬
fying to me to see men of demon¬
strated
experience and compe¬
tence in the business world being
selected to help man the adminisr
tration of the greatest business en¬
terprise on earth. And I am sure
that we will find that the experi¬

Copies of the Prospectus
writers

may

be obtained from

any

only in states in which such underwriters

of the several under¬

are

qualified to act

as

a

For

Banks, Brokers and Dealers

FOREIGN

ence

of

such

men

is

not

incom¬

patible with their new political
responsibilities.
What, indeed,
could be more orderly or intelli¬

SECURITIES

What else could inspire a
greater resurgence of confidence
in the future opportunities of our
country? And not in any way to
promote the selfish interest of in¬
dustry but for the advancement of
our society in terms of social gain.
"It is impossible to separate one
gent?

MODEL, ROLAND & STONE
7

Members

/

New

York

Stock

Exchange

dealers in securities and in which the

NEW

BROADWAY
YORK

5,

NT.

WORTH

Y.

TELETYPE

LONDON:
20-24

Private




NORTHGATE

HOUSE

MOOREGATE, LONDON, E. C. 2.

Teletype

to

London, Eng'and

4-5300
NY

1-2525

I

that

do, not subscribe to the
has prevailed—or that

idea
now

exists in various quarters—that
recession is likely

may

legally be distributed,.

Blyth & Co., Inc.

'

Laurence M. Marks & Co.

Paine, Webber, Jackson & Curtis

*

F. S. Moseley & Cot

L. F. Rothschild & Co.

.

Dominick & Dominick

Blair, Rollins & Co.

Hemphill, Noyes & Cc.

Hallgarten & Co.

Corporation

Hornblower & Weeks

White, Weld & Ce«

Wertheim& Co.

Union Securities Corporation

Smith, Barney & Co.
American Securities

Merrill Lynch, Pierce, Fenner & Beane

Lehman Brothers

Kidder, Peabody & Co.

Elworthy & Ca

Shuman, Agnew & Co.

Incorporated

E. F. Hutton &

Company

Weeden & Co.
Incorporated

Courts & Co.
Bcettcher and
Fewel & Co.

A. M. Kidder & Co.

Reynolds & Co.

Auchir.closs, Parker & Redpath

DavieS & Co.

_-,

Company

R. L. Day & Co.

Blunt Ellis & Simmons

J. J. B. Hilliard & Son

Tucker, Anthony & G_\
Baker, Weeks & Cov

,

Davis, Skaggs & Co.

from the other.
120

Prospectus

H. Hentz & Co.
Mackall & Coe

Piper, Jaffray & Hopwood

Hope & CeStix & Co

Robinson and Lukens

a

during the cur¬
rent year.
I believe 1953 will go
down in history as a year at least
as
good in the aggregate and
probably better than 1952. I be-

Maxfield H. Friedman
January 16,1953.

J. C. Newsome & Co.

Woodard-Elwood & Company

16

News About Banks
NEW BRANCHES

Mr. Palkot was

of New

sonnel

Jersey.

The

election

of

National Bank of the City of New

CAPITALIZATIONS

York,

announced

was

Jan. 14,

on

Blaine, President.
previously a Per¬

Administrator

Connecticut

*

*

Stephen Van
Renssalaer and C. Malcolm Davis
as
Vice-Presidents
of the First

Bankers

and

OFFICERS, ETC.

G.

James

dent of the Standard Oil Company

*

CONSOLIDATIONS

REVISED

Vice-Presi¬ by

and

Treasurer

urer,

NEW

with

Life

General

The Board of Governors of the
Reserve

Federal

System

an¬

pointment as Secretary of
the
A«imy. Mr. Crane was employed

nounced on Jan. 13, the appoint¬ by the Federal Reserve Bank of
1915,
ment, effective Jan. 20, of o ay E. New York from Dec. 6,
Crane, Vice-President
of the through April 30, 1935, and served
Standard Oil Comi/any
(New as an officer of the bank fiom
Jersey), as a Class C Director of Jan. 1, 1919. Immediately prior to
the Federal Reserve Bank of New his present appointment he had
York for the unexpired portion of been serving since Jan. 1, 1949 as
the three-year term ending Dec. a Class B Director of the bank,

Insur¬ Board

31, and his designation as Chair¬ elected by member banks of the
man' and Federal Reserve Agent Second Federal Reserve District.
at the bank for the
tion of the year

remaining

Mr.

por¬

1953. As a director

Crane

career

has had

a

successful

and

tions

Supervisor for Sperry Gyro¬ Port Chester,

scope

during N. Y., it was
Fellow of announced on

Inc.,

Company,

World War II. He is

a

who has resigned, ef¬

New York,

fective Jan. 19, 1953, to accept ap¬

Julien L. McCall and Ernest Bentsen

Cashiers.

Assistant

as

Mr.

formerly Manager of the
Department, has been as¬

Terry,
Credit

sociated with the bank since 1933.
*

in the financial world, after

eral

Reserve

identification

and

Bank
as

later

Assistant

his

Treas-

*

*

erd,

Chair-

man

of

Stocks

Bonds

the

e,

dent.

Presi¬

Mr. Mc-

to

the
aeu. r.o.

*

*

*

man

McCuilough

Chair¬

is

of Senate's Committee on

Shanahan, President porations. His other committee as¬
of the Federation Bank & Trust signments are: Affairs of the City
Company of New York, announced of New York, Banks, Judiciary,
that at a meeting held Jan. 13, the National Defense and Military Af¬
Board of Directors appointed fairs.
Senator
McCuilough was
Thomas F. Goldrick, formerly As¬ educated
at
Iona
Preparatorysistant V i c e-President, a Vice- School, the University of Notre

bank since 1926. He is

New

York

and

the

of

New

York

a

Dame,

Fordham

School

and

University Law

John's

St.

University

He is engaged in

Law School.

Institute

general practice of law as a mem¬
of ber of the firm of Barber & Mc¬

Credit, the Alumni Association of Cuilough, with offices in Rye, and
is a director of the Rye Trust

the New York Institute of Credit

Company,

and the Credit Men's Club of the

Company. In addition to his serv¬
ice in the Assembly and Senate,

Fur

he

t o
Board of

who

is

Industry.
*

*

tive

of

Stockholders of the Garden City

National

The

Sheperd

Bank in

City

the

in

enrollee

an

C.

Howard

Following

1916

College
a

period

been

of

member

a

pervisors,
to

Legislative

Westchester

the

Counsel

County

JERSEY

the

acquisition

of

the

Bank

of in 1938.

Great Neck at Great Neck, N. Y.
and

chanjrexif the name of the
expandeoTKutution to the Long

*

*

*

At their annuel meeting on
13

is

erd

Dircetor

a

of Best &

Co.,

Canadian Pacific Rwy. Co., Co n-

ing Glass Works, Inspiration Con¬

BONDS

solidated

Copper
Co., National
City Realty Corp, Union Pacific
RR. Co., United
Aircraft Corp.,
and

is Chairman

+he

National

of the Board of

Dealers and Brokers in

Railroad, Public Utility & Industrial

City Safe Deposit
ComDany and International Bank¬
ing Corporation. He is President
and Director of the National City

Bonds & Stocks
Over-the-Counter

Foundation etc.
*

Co.

1920

meeting

on

stockholders of the

the

13,

*

*

I At their annual

TELEPHONE

Jan.

Na¬

Ingalls & Snyder

N. Y.

WHITEHALL 3-3414

proved an employees' profit shar¬
ing plan which had previously

System Teletype—NY 1-535

adopted by the Board of Di¬
Approval was also given
by the stockholders at the annual
meeting to the proposal, recom¬
mended by the Board, to increase
the capital stock of the bank by
$6,000,000 by the declaration of a
dividend of

stock
.

Outlook for

were

Circular C-22

of

Details

Railroad Securities in 1953
request

Bond

9,

1324, and

page

1

Situation:

4l/2s, 1957

dent in

Circular C-23

approximately 514 %

on

request

F.

& Hickey

Members

New

Members

American

York

Stock

Exchange

branch, in New

bank

to

as

Stock

Exchange

*

New York 5, N. Y.

Teletype:

NY

2-7900

1-911

NEW YORK 5, N. Y.
—

Bell System

Teletype NY 1-1459

which

Field, RicWs & Co.
ESTABLISHED 1908

is

Center

York, has

been

the head office

of

Underwriters and Distributors

Deputy Head of the

Department,

supervised

by

David

Of

Municipal & Corporate
Securities

"Senior Vice-Presi¬
Walsh, Vice-Pres¬

ident, will succeed Mr. Moeller

as

officer in charge of the branch.
*

1556 Union Commerce Bltfg.

*

The election of Edward J. Pal-

Telephone: HAnover




Dec. 11, page

Metropolitan

new

*
»

49 Wall Street

Exchange

Exchange

proposals

Rockefeller

dent. Joseph M.

Vilas

COrtlandt7-6800

Stock

Stock

charge of the Chase Na¬

Rockefeller,

.

'

York

American

100 BROADWAY

Moeller, Vice-Presi¬

Bank's

transferred
the

Return at current market

*

$

tional

Buffalo, Rochester & Pittsburgh

New

given in these columris Oct.

Harold

Special

Members

300,000 shares.
these

both

2243.

on

Members

been

rectors.

Bell

Trading Dept.

D. Howard Brown

tional City Bank of New York, ap¬

NEW YORK 5,

Jan.

stockholders of the Wor¬

the

he was elected
Chairman of the Board. Mr. Shep¬

MUNICIPAL

20 PINE ST.

Vil¬

a spe¬

cester County Trust Company of
military service in World War
Island Trust Company.
Bank of Worcester, Mass., authorized/ an
I, he was appointed Assistant
increase of 10,000 shares of com¬
Cashier in 1921, and successively Great Neck stockholders had pre¬
mon
stock.
Edward E. Williams,
became Assistant Vice-President, viously, on Jan. 19, approved the
trustee of the American Optical
Vice-President and Senior Vicemerger.
The merger plans were
President until 1948, when he was
referred to in our issue of Jan. 8, Company of Southbridge, Mass.,
appointed President and Director.
Continued on page 94
page 109.
On Dec. 3d, 1952,

of

Established

the

of Su¬

lage Officials' Association, and re¬
search assistant to the New York
cial meeting on Jan. 20 approved State
Constitutional Convention
City, Long Island, N. Y., at

Vin-

has

Westchester County Board

*

Bank & Trust Company of Garden

na¬

a

Train mg Class.

&

the

member

Farmers Trust

as

Boland, Saff in

Cor¬

Thomas J.

of

of

elected

He

Bank

Ind.,
began
with

New York 5

w

munity Chest Drive.

City

cennes,

Established 1924

NEW

In¬

National

Saving Bank.
Mif. Sheperd,

•

Insurance

East River

Adams & Peck

o

Senate in 1950.

Trustees of the

63 Wall Street

the

rick has been associated with the

the

Investment Stocks

for

Chairman

The

the City Bank

Leased Line

1

bank's

dustry in the 1951 Hartford Com¬

President of the bank. Mr. Gold¬

the

of

Board

Guaranteed

of the Connecticut Personnel

Jan. 16 by Ed¬
P. Ped-

ward

Vice-President,

Re¬

Federal

Port

the

of

Davis, formerly an As¬
Association
and
the
American Cullough,
a
has been
former
Aswith
the
bank
since 1946. An¬ Society of Training Directors. Un¬
til recently, he was a Director-at- s e m b lyman
nouncement was also made of the
Greater Hartford from West¬
election of F. Donald Terry as Large of the
having been chester, was
Assistant Vice-President and Community Chest,
sistant

graduating from Yale College he
George O. Nodyne, President of
serve
Agent,
he succeeds
Mr. joined the "chronicle's" editorial the East River Savings Bank, of
Robert T. Stevens, Chairman of department, which was followed New York announced the election
the Board of J. P. Stevens & Co., by his connection with the Fed¬ on Jan. 15, of Howard C. Shep¬
Chairman

Trustees

of

Company of Hartford, Conn., Chester Sav¬
and prior thereto Employee Rela¬ ings Bank
of

ber

Mr.

S.

ance

the Life Office Management As¬
by Alexander C. Nagle, President.
sociation, a past President of the
Van Renssalaer, formerly an
Central Connecticut Industrial
Assistant Vice-President, has been
Training Association, and a mem¬
associated with
the bank since
1928.

I^fank

New York State Senator

McCuilough, of Rye, N, Y., has
the been elected a
member of the

Mr.

and

Thursday, January 22, 1953

The Commercial and Financial Chronicle...

(296)

kof

as

Assistant Vice-President in

the Personal
Marine

of Nfcw

Department of The

Midland

Trust

Cpmoany

York, has been announced

CLEVELAND 14, OHIO
Telephone PRospect 1-2770
Teletype—CV

174

Y20T

Union

Central Bldg.

CINCINNATI 2, OHIO
Telephone Main 3776
Teletype—CI 197 A CI 150

Volume 177

Number 5188... The Commercial and Financial Chronicle

(297)

Mr.

Schwabacher & Co.

Rafferty,

firms
San

Admits Three Partners

who

Municipal

heads

the

Department

Stock Maiket in {or

in

Francisco, has been with the

firm

for

5

graduate of
Loyola University, he was form¬
SAN FRANCISCO, Calif.—
erly with Martin, Burns & CorSchwabacher & Co., 600 Market bett in
Chicago for many years.
Street, members of the New York
Mr. Bowyer, head of the Trad¬
and

Francisco

San

Ex-

Stock

Wider Technical

1942 he

was

Partner, T. L

Mr.

Payne, pointing

asso¬

ciated with Schwabacher & Co. in

vacuum,

their

market

New

York

office.

He

is

Financing to

retire $15,500,000
existing indebtedness of Mont¬
real
Transportation
Commission
and to provide funds for continu¬
ing a program of modernization

of

Watson & Co.

Members, New York Stock Exchange

partment, has been with the firm
Until

Swings

By GEORGE R. PAYNE

ing Department and Assistant
Manager of the Investment De¬
18 years.

Group Offers Montreal
Transportation Debs.

A

years.

a

looks for

President of the San Fran¬
cisco Security Traders Association.
Mr. Shoemaker, who is manager

out stock

trading does
frequent and wider

not take

place in

of the
City of Montreal's local
transportaion system was effected

a

technical swings as
Foresees shift from blue-chip issues
those of lesser quality.

more

via

higher.

moves

Fast

to

of

the

firm

rranK

Research

of

mission.

In

and

National

City Company
and
Chase, Harris, Forbes in New
York, and for a time was on the

JOowjer

editorial

staff

of

the

New

Mitchell, Hutch ins
CHICAGO, 111.—Ralph M. Som¬
become associated

with

Mitchell, Hutchins & Co., 231 So.
La

Salle

Street,

members of

the

New York and Midwest Stock Ex¬

changes.
erly
Jameb

was

changes,
mission

has

announced

H. "M.

Company, Inc.

Saoemaker

w.

Mr. Sommers

with

the

ad¬

Chicago

was

form¬

general partnership of
James F. Rafferty, Frank Bowyer, past he

representative

for

and James W.

Shoemaker.

man

with Farwell, Chap¬

was

tant—the

gotten

& Co.

tor

has

most

in

been

post¬

election

riod.

George

R.

Payne

offices

is

certain way

no

,

,

,

_

.

of
.

rally (on the accepted averages or
indices) with little change in the
immediate

earnings

dividend

or

picture.
is

most

important, however,
investors recognize that the
1946-1949

porary

has been
decade.

YORK

5,

N.

the

The

although almost for¬

Mass.

real.

—

201

to conduct

an

Devonshire

investment business

in municipal securities. Principals
f
,

Jr-»

th

f.

tne llrm are
of

Co.,

Fredrick

and

formerly

name

to

United
;

Stephens, Jr., Opens

the

business

from

offices at 202 Teil-

Avenue.

Kidder,

B. C.

both

Peabody

&

Sparrow, who

conducted

his

own

in¬

of Sparrow & Co.

Chapman Opens

(Special to The Financial
Chronicle)

SAN
C.

BRUNO, Calif.—Benjamin

Chapman is engaging in

a secu¬

rities business from offices at 759
Kains Avenue.

nearer we come

rise.

investment

trusts,
While

of

part

Rights

-

Scrip

-

Warrants

price-earnings ratios and dividend
yields are by no means unduly out
of line, they are by no means as
they

as

difficult

to

earlier

at

were

bull market.

On the other

hand, it is not too

find

issues

of

some¬

thing less than blue-chip quality
selling at modest relationships to
anticipated earnings, and provid¬
ing satisfactory - to - excellent re¬
turns.

It is my thought that we
rapidly arriving at a phase of
the bull market that will give due
recognition to issues of this cal¬
are

OUR

ANNUAL

AND FORECASTI

ibre, and later, to
speculative

frothy

REVIEW

cats

stage

will

the

even

and

dogs.
if

—

REORGANIZATION

most

That

history
warning

proves any guide—be a
signal to the sophisticated
tor, and one which should
ignored.

inves¬
not

be

While the 1953 business outlook

This

year's REVIEW gives

a

balanced appraisal

of the outlook for business and the markets and

features

analyses of
•

•

Their

•

For
mm.

a

ager.

probable effect

on

business in

of

our

of

clear-cut, the consensus
opinion is that there is

real

concern

for at

least

Beyond that, opinion differs, but
is generally cautious. My view is
that with the automotive

industry
turning out better than five

seen

coming months.

million

Implications for certain key industries.

copy

little

six months ahead.

—

Today's underlying economic trends.
the

SSiiv':

Js far from
of expert

Annual Review, write Man¬

Research Department.

passenger

cars,

with

strong

cRonnell

&

the

defense program still providing a

MEMBERS

v

stimulus

despite a slight
stretch-out, and with personal and
disposable incomes likely to reach

New York Stock

Exchange

American Stock

Exchange

'

new

FOUNDED

1856

peaks, the business atmo¬
sphere will be healthy, well be¬
yond the six-month deadline.
.

H.IIIi.NTZ & CO.
Members New York Sfock Exchange and olher
4

leading stock and commodity exchanges

:■

The market, however, is another

thing.
come

take
the

60 BEAVER STREET,

.

BOwling Green 9-8420

mmm

'%<

/
CHICAGO

i

781 FIFTH AVE.,N. Y. (Sherry-Nelherland Hotel)

'

DETROIT

Plaza
.

New York 4, N. Y.

PITTSBURGH




•

GENEVA

•

1-2229

MIAMI BEACH

•

HOLLYWOOD. FLA.

Here,
technical
factors
play, and frequently
quite an opposite course to

120

BROADWAY, NEW YORK 5
Tel. REctor 2-7800

into

obvious

fundamentals

BRANCH OFFICES:

affect¬

ing business and corporate earn¬
ings of the moment. Therefore, I
should look for more frequent and
wider
technical
swings as
the
market moves higher. It is my be¬
lief, too, that there may well be a

*

FRESNO, Calif.—J. D. Stephens,
Jr., is engaging in a securities

a

pension funds and the like.

the

securities

p- F°8S.
Loker,

vestment business in Boston under
the

marks

of

(Special to The Financial Chronicle)

p

anc* Robert P.

formerly

financing

Commission

J. D.

man

c

The

States investors.

P.

Street

uncondi¬

to

as

public offering

the

of

George

are

guaranteed

princi¬
pal,
interest and
sinking fund
retirements by the City of Mont¬
first

Fogg Co.

debentures

tionally

—

for almost

nature of the

very

Stages of the

"

'?

at

By and large, this has been scored
by "blue chip" investment issues,
backed by the insatiable demand

attractive
>

maturity.

eventual top.
Hence,, with
advance, the dangers increase
proportionately.
One saving feature,
perhaps, has

on

Y.

been

plus
interest to yield 4.35% to

accrued

each

been

Members New York Slock
Exchange
Principal Security & Commodity Exchanges

New York and Savard & Hart of
Montreal and New York. The de¬
bentures are priced at 98.67%

the

to

Francis I. duPont & Co.

comprising

It is fundamental that the

higher it goes, the

tomorrow's markets

STREET, NEW

interruption

the rise

on

long

an

Fogg & Co. has been formed with

pe¬

There

has

The

offering was made
underwriting syndicate
46 investment firms
headed by Shields &
Company of
by

speedier

"normalcy."

BOSTON,

marked

the

a

even¬

Formed in Boston

general market—save for the tem¬

WALL

—

P.

.

The latter fac¬

It

Today's Research for

—

and

what

considered

vailing public
p sychology.

that

ONE

expectations of

relief

.to

pre¬

and

Knickerbocker Shares, Inc. In the

to

the

valuing confidence — and confi■
dence, engendered by the election
prior thereto results,
brought about a 30-point

Byllesby

and

of

tax

return

itself,
and—perhaps
most impor¬

(Special to The Financial Chronicle)

has

status

the

on

market

R. M. Sommers Joins

mers

tual

condi¬

ness

tions,

York

"Journal of Commerce."

but also

derlying busi¬

a
pubMe offering on Jan. 23
$18,000,000 20-year A1/* % sink¬

ing fund debentures of the Com¬

appraising the outlook for shift in emphasis from the
topBuying De¬ the stock market, it is vital to notch
blue-chip issues to those of
partment of Schwabacher & Co. recognize that stock
trading jdoes slightly lesser quality. The overall
in San
Francisco, has been with not take place in a vacuum Funtone,
though, should
remain
the firm 15 years. He is a
a a me
gradu¬
ntally
strong, based not only on regen¬
ate of the University of
Illinois, important are
erated confidence in
was
government,
formerly associated with the general
un¬
of

17

Buhl Building, Detroit, Mich.

1 Press Plaza, Asbnry Park, N. J.

254 Park Avenue, New York

18

The Commercial and Financial Chronicle..

(298)

been

Spend some time on obtain¬
good list for circularization.
is no guaranteed rule for
success in this work; you can try
etc.

ing

widely

used

Thursday, January 22, 1953

results, in my opinion,
extremely promising.

the potential

far, yet

so

quite small and

are

expenses

a

.

the

are

There

Securities Salesman's Corner

until you

succeed. The first rule
however, is to use
appears to be a list
of conservative people.
for

By JOHN DUTTON

INVESTMENT CLIENTELE

AN

BUILDING

success,

what at

least

Appeal
There

(Article 4
Direct Your

t^sing and your line is investments,

V/ihy not sit down with the best
i clvertising man in your town and
t-ell him about the kind of people

want to meet?
Give him a
ascription of the investors that
I mentioned in this column last
j ou
c

The

veek:

widows,
g

the

the

people,

retired

and

professionals

Investors"

that is qualified in your town,
here is one tried and tested way
of doing it. Secure a stockholders'
list of some good company that
would normally include people interested in conservative investments. A sound utility stock, one
of the blue chip stocks listed on
the New York Stock Exchange, a
local company that has a long record of - stability, or similar lists
will be your starting point. Remember that conservative people
usually
invest
in
conservative
companies. There are other lists
that you can obtain. There are
list houses in New York and other
large cities that specialize in this
type of work. Some of them list
people with a certain amount of
capital, others have lists of directors, club lists, professional people,
one

were

nail businessmen. Ask him how
find them.
Possibly he will

to

suggest a plan that you can use to
c evelop these contacts properly.
If your advertising man doesn't
Ibave the answers, or there isn't

BUILDING

TRUST

19,

Municipal Securities

obtain

to

ways

mail campaign. First

a

that will be
recipient.
And

the

to

Corporate Securities

it easy for the

stood.

Next make

person

who receives your offer to
There . may be some who

reply.

Top Markets in Michigan Municipals

criticize the doqble return card as

being too

undignified for the in¬

vestment

business.

I

have

these cards

seen

0'

bring re¬

These

should

replies

the

/

in

salesman
should

be

''

'

\

J

-//

'/

f

,

:

f

r

/

/

*

'

V

'

e*

/

V

;;;;

Securities
CLDG.

DETROIT

WO. 3-6363

an¬

'

f

%

'

<7J

personally

oi*

depending
upon
the
you
wish to have your
salesmen
use
in
following
up'
these inquiries. This will be taken
delivered,

method

detail

in

in

later

article.

salesmen

should

a

your

larger percentage of

a

Michigan and General Market

pros¬

pects that will be in Group 3 (the
investor) upon which he may call,
from

this

from

any

Municipal and Corporate

type of mailing than
general campaign that
might develop.

you

No salesman

PA.

Securities

expect his firm

can

Private

.

to eliminate all

people who

good prospects in

not

are

mail

any

tions.

A good lead is a j

Members

prospect that might be
in

the

interested 'J
you
have to ;

proposition

and

Chicago

Detroit

Stock

Exchange

;

Exchange

;

.

.

Port

Lansing

Huron

■"*

YORK

Battle Creek

Grand Rapids

Cleveland

Chicago ,;.

great deal in saving a
good salesman's energy, and keep¬

-

NEW

DETROIT

seekers, tip hunters, and people ;
generally disqualified as investors,?
is worth

York

New

Midwest Stock

The elimination of curiosity

offer.

to

First of^cihgak Lorpokation

But

have good leads.

Wire

cam¬

Advertising has its limita¬
a good salesman should

paign.

Investment Securities

/'
-y-

915 HAMMOND

or

person.--

mailed,

be

'

,

investment

by the
The report

firin,

'

'

tNbOSFDDAtEl)
'

of replies.

by

'
•

H.V. Sattley& Co.

report pertaining to the
security that the customer holds,
will usually produce a worthwhile

swered

'

'

biased

percentage

'

•

0

' <&.

V

Nevertheless,

plies where fancy letters sent at
much greater
expense
failed to
click. A neat card offering an un¬

up

PITTSBURGH

DISTRIBUTORS

-

make the word free clearly under¬

However,

UNION

UNDERWRITERS

Interest

offer something free
valuable

have

THOMAS & COMPANY

two

are

action from

Advertising Toward the

going out to catch
gome fresh water bass, would you
geek out a good well-stocked inland
lake, or would you stroll
down to the seashore with a surf
red and try the ocean?
If you
t'on't know anything about adverIf you

1)

Part

—

Selfish

to

Bay City

.

a

£^5
* mm * m m m

art*—to**"***

—■

ing him enthused as he goes about v

building and develop*-;?;!

his work of

ing his clientele of investors.

Dealers and Brokers in

Public Utility

Railroad

•

•

Industrial

SECURITIES
New

Electronic

Television

and

Guaranteed

.

Leased

and

Line

Bonds

Securities

Funds

them.

Shares

Charles A. Taggart & Co., Inc.
Philadelphia-Baltimore

Stock

Exchange

Investment Securities
1500 Walnut

I

Teletype
PH 677

would

advertisement

New York Phone
Z?" \^ WHitehall 4-7000

gladly>
sell

or

.

THE FIRST CLEVELAND CORPORATION

a

has

that

MEMBER

offered help

what

rights.

a

As

to

with

do

NATIONAL CITY

the

in

to

see

used

similar

held

blue

them.

ads

chip

They have

other widely

on

with

stocks

E. 6th BLDG.

CLEVELAND

result they have had

few conservative investors

a

come

MIDWEST STOCK EXCHANGE

and assistance in de¬

termining

quite

Street, Philadelphia 2, Pa.

Philadelphia Phone
KIngsley 5-1716

offered.

were

they

SECURITIES

&

They have done this in

friendly

Members

rights

stated

help investors either to buy

Bank and Insurance Stocks
Mutual

regularly

advertising

American Telephone

whenever

They

Obligations

Equipment Trust

in

Telegraph

Stocks

MUNICIPAL and CORPORATION

I know of one firm that has had
success

Jersey and General Market Municipal

Underwriters and Dealers

Advertising

14

Telephone

Teletype

PRospect 1-1571

Bell System CV 443 & 444

-

good

results. Such contacts are valuable
and

Semi-annual Appraisals

be

can

developed into excel¬

lent accounts.

i

>

.

Other

Equipment Trust Certificates

progressive

toward

have

retired people, women

vestors,

and

formation

City of Philadelphia

firms

used booklets written and directed

all

those

in¬

where

In U/te

Heart of Oh

in¬

pertaining to sound in¬

vestment principles might be ap¬

and

preciated. Such ads where

coupons

have been used have also worked

Philadelphia School District Bonds
as

of December 31, 1952

Now

available

well in certain communities.

Your

Write for your c&py

STROUD & COMPANY

locality. What will work well
community

one




•

PITTSBURGH

•

LANCASTER

may

not in

•

INVESTMENTS

51 n.HIGH

ST., C0LU1T1BUS, OHIO

an¬

way

you

help, and the

your

can

do

so

is to

do

advertising that is directed

toward them.
Next

field,

The Ohio® Company
L

=^4

But you must find the peo¬

ple that need

some

9

find ont what is good in

your

only

Incorporated

ALLENTOWN

de¬

you

other.

•

be

once

in

NEW YORK

should

that have produced results for you

for distribution

PHILADELPHIA

campaign

veloped to continue along the lines

of

week

we

will

advertising

take

up

that has

a

not

Underwriting,
Distribution

Number 5188

Volume 177

.The Commercial and Financial Chronicle

..

they have felt in perhaps 20

A Favorable Outlook

•'

more.

or

lead" to the

;•

-

Equitable

of fair* treatment for business has given
greater confidence in American free enterprise.

now
a

-investment

for

1953 is favorable.

'

*"

secondary

•

porate earnings and

;

curities

ties

is

profitable to the in¬

more

the under¬

banker than

vestment

in

writing of senior securities.

se¬

authorities

Most

anda

•duced

to

seem

agree

tbat

the,volume of tax exempt
bonds in ,1953 will top the record

re-

tax

fgh established in 1952. Certainly
All this year's new emissions of public

burden:in
1

9

5

3.

things consid¬ securities will be substantial in¬
ered, the yeai* deed, as state and local govern¬
s h o ul d
be a ments strive to bring their high¬
good
i

public facilities :more nearly up
to the needs and demands of a

The

capital

penrtitures bv
probably fall
1952 figure,

the

intangible—but
important — psychological

construction,

ex-

\

of

short

little

•

of

U.; S. industry will
a

rapidly expanding population.
Augmenting such tangible con¬
siderations as public and private

1953

volume
Owen

and

ways,

the

banker.

•Ralph

streets, schools

in¬

for

estment

n v

for

indicating

highly

are

The

factors.

national

new

Gecrgeson

of

Lawyers

for

stockholder

development,

equipped to present such plans

to stockholders for their

As consultants in.

approval.

us

to

how

you

stockholder rela¬

enables

sentiment

and

products

holder-relalious

for

tions, our broad knowledge of stock¬
holder

power

On

the

invest

add

invest

it,

more

money

securities.

attractive
with

a

to

banker

couM

larger

percentage
profits to net.

gross

of

is

from

Proceeds

the

our

We

es¬

Joins Hay den,

and'

,

demon-

It

has

shown

initiative

the

in

BOSTON

to

.

Management on

.

,

Stockholder Relations

PHILADELPHIA

PITTSBURGH

,

.

.

.

.

.

CHICAGO

SAN FRANCISCO

.

.

.

future,, it is

near

pos-r

it

had

great
and

its

times

many

It sold at 54 in

present

1946 and

increased

price.

looks

its

as

earning

substantially since then. Its
lies in its leverage

appeal
in

the

inordinately

small

number of shares it has outstand¬

ing.

I

think

can

of

no

more

at¬

tractive speculation for an intelli¬

unsuccessful

in

and patient bargain hunter
today's market.

own

Trading Markets in
AMI

INC.

CENCO CORP.

>

GENERAL AVIATION

GULF SULPHUR

fund

LONE STAR SULPHUR

1968 was

TRANSCONTINENTAL OIL
financing

Office

has

—

Charles. E.
associated

Square.

Mr.

Darnell

previously with Townsend,
pey & Tyson.

was

Dab-

SPECIALISTS

in the

show

Morton

George

Grinnell. died

THE FLYING TIGER LINES, INC.

Jan.

19., He was a partner in Dick
Merle-Smith, with which he

&'

been associated

With Peitason,

since

1925.

TbI. HAtlOVBT 2*1470
.

ST.

LOS ANGELES T

LOUIS,
is

Peitason

CLEVELAND

Tenenbaum

-

ing.

He

was

Simon &

★

★

Tenenbaum

(Special to The Financial Chronicle)

.

following security

George Morton Grinnell

will

"WhatJWe Do—How

.

5, N. Y.

Teletype NY 1-2233

Telephone WHitehall 4-5540

cor? •

Write.-

be of hel.x

New York

30 Pine Street

with Hayden, Stone & Co., 10 Post

and 'pros¬

any

Stone Co.

become

Mass.

^BOSTON,

more

a

program,.";we

can

folder:

Co.

at

aggressiveness and gent
buying

★

^ORGESON &

not

disastrous pe¬

(Special to The Financial Chronicle)

,

Darnell

It."

Do

the manage¬

some

will be used to reduce bank loans.

stock¬

Its

the opportunity to

wa

thing

orphans to hold.

other hand,

Jan, 20."

on

this

is

industry

.

convert

his

sinking

3%%

When

,:with

loaded

and

Active

Co,

Foods

strated' its ability to make money.

more

pay,

Hygrade

ment of this company has

Moreover,

rate to

lower tax

investment
a-

and

situation

a

a

dividends

that

stock -is. highly speculative.

greater incentive to

a

while

ings, .fatter

had

Consultants

.

sible to visualize this stock selling

widows

investor

foregoing

porate proposals or planning a stocky

appreciate
Y

•»

encourage

considering

are

you

riod' in the

for

continuous

community

position,

If

meat-packing
about to enter

lows that it is not the sort of

pects.

nationwide organization is

Our

well

percentages to net
$1,400 per share would
given Hygrade earnings of

dividual

complete knowledge of the company

ing their acceptability to. stockhold¬
ers.

market at

open

Ap¬ ^value rather than putting money
into ■
building
expensive
new

these

kind of dynamite it generally fol¬

service alSo brings to

This

financial

—its

in gaug¬

and

of 0.877%.

companies in the

fractions of their depreciated book

if

understanding be¬

management

tween

experience with corporate pro¬

their

close

a

holders.

action.

posals of all kinds is of great value
in

to

average

L. D. Sherman & Co.

supervise

which

maintain

the
Our

and

programs,

often

substantial help to those respon¬

sible

0.06%

an

of

Banks

...

tablish

& Co. has performed lor

than €00 corporations are

from

with

if they ma¬
terialize, will help the investment
banker
both
indirectly, and di¬
rectly. A lowering of individual
income taxes would give the in¬

Ad¬

& Co. Helps Management.

specialized services which

more

sales'

reductions,

Tax

announced

The

plying

the

debentures, due Jan. 15,

Dealers

sales,

growing insurance company assets tremendous future potential in the
assure a ready market for senior
company's earning power. *
securities in 1953.
It is of course obvious from the

Tobacco

Underwriters

ranged

of

ministration,
with
its
explicit
promise of sound fiscal practices

some

How Georgeson

2.91%

for the nine years

a

in

earnings

curtailment
in new money financing by pri¬ in
government and its implied
¥
vate
enterprise.
Even so, new promise of fair treatment for busi¬
emissions will be plentiful.
And ness and industry, has given in¬
Private -placement
through
greater
confidence
in Union Securities Corp. of a new
there are reasons to think that a vestors
free
enterprise
than issue of
larger percentage of this year's American
$8,000,090 United States

thus

earnings

common

drop in corpo¬
other rate rates »would soell larger earn¬

one

deed

of

out

*

possibly

demand

politically inspired
confidence is bolstered by the an¬
ticipation of- continued high cor¬

'

markets

The Security I Like Best

an

-

reasonable to expect
volume of new issues, active

appears

2

page

t

It

satisfactory
■

from

plants. The company has shown
larger pay¬ have
fantastic
growth
in
ten
years
form oi
$0.84 per share Cat 0.06% profit without one dollar of equity fi¬
dividends. Thus, a favorable stock
margin;, $40.74 Cm 2.91% margin, nancing and looks as sound finan¬
market appears likely for 1953,
and $12.28. per share at the aver¬ cially today as it was ten years
corporate issues will be in the barring a serious deterioration of age profit margin which .has pre¬ ago.«
•
the
international
situation.
form of equity securities than has
It is impossible to forecast what
vailed during ;the past ten years.
been the case in recent years. Of
Steadily growing pension funds, While this may be a questionable this stock is going to do in the
course, the underwriting of equi¬
expanding
bank
deposits
and guide to the future it does show a market, but, assuming that the

promise

in

and hence, to

This"

stocks.

implied

outlook

acceptance of greater

increased

satisfactory volume of new issues, and active
markets in secondary securities, investment banker points out

The

they

Securities Corporation

a

banking

Continued

individual investors than
have been willing to take

in recent years,

Forecasting

investors

years

.

risks by

By RALPH OWEN

,

President,

'

This renewed confidence should

For Investment Banking
,

19^

(299)

C. E. STOLTZ & CO.

Mo. — Charles M..with' Peitason,

now

'

Member American Stock Exchange

(

-

Co., Landreth Build¬
STREET, NEW YORK 4

BROAD

25

previously with I. M.

Co.

Teletype NY 1-2532

Telephone HAnover 2-1762

i*

0

All

these

shares

having

been publicly gold,

advertisement appears as a matter
•

-

•••-

x

JW

'

»

this

of record only.

„

■

■

We

300,000 Shares

Specialize

SYRACUSE & CENTRAL NEW YORK SECURITIES

•

texas northern oil corporation
.1
Buffalo

COMMON

STOCK

Excelsior

PRteT-Sl.OO PER SHARE

First

arranged

of this issue has been

through

the

Merchants National Bank

Insurance Co.

Securities

First Trust &
The financing

Madison Co. Trust

Eclipse Corp.

Equitable Credit Corp.

Corp;

-

Oneida Ltd.

„

Onondaga Pottery-

;•

Oswego Falls

Deposit Co.

Rochester

Hotel Syracuse

undersigned

Lincoln National Bank &

Tr.

*

r

-

Corp. "

Telephone

Shepard Niles Crane & Hoist
Syracuse Transit Corp.

Lipe Rollway
Underwriters

R. V. KLEIN COMPANY

WEBER-MILUCAN CO.
f

50

170

Broadway

New York, N. Y.

New York, N. Y.




Members,

Broadway

National

Association

of

Securities

Dealers,

Inc.

Private

Wire

Con-

ections to New York—

Cleveland,

Detroit,

Chicago.

L. Johnson & Co.
STATE TOWER BUILDING

SYRACUSE 2, N. Y.
Bell Tele. SS 190

Tel. Syracuse 2-1236

20

The Commercial and Financial Chronicle... Thursday, January 22, 1953

(300)

Gas

Missouri Brevities

a

Co/ which

Service

up sales

set

$7,500,000 bank credit in October

with

the

Commerce

figures

included

reported

excise tax.

Tomorrow's

Co. of

Trust

For the nine-month period, vol¬
City and the Chase Na¬ ume was
$9,806,698,
compared
International Shoe Co. in a pre¬
compared with $15,- tional Bank of New York, has
with
$9,243,426 a year earlier.
liminary consolidated statement 559,000 in December 1951, an in¬ shifted part of the short-term debt Each
quarter produced a gain,
for the fiscal year ended Nov. 30,* crease of 19.9%. For the year 1952 into long-term debt.
with the largest reported in the
totaled' $171,339,000
com¬
The company on Dec. 23 sold
1952, reports earnings equal to sales
first quarter.
$2.44 per common share, compared pared* with- $160,066,000 during $1,000,000 of promissory notes due
*
*
*
with $2.61 per share in the pre-i 1951, an increase of 7%.
June 1, 1956. The loan carries 3%
Despite the slowdowns created
The company owned 276 retail interest until l954 and 3V4% fromceding year. The 1951 fiscal year
earnings have been adjusted on a units and serviced 2,750 wholesale then until maturity. Proceeds will by the steel strike last year, Union

Kansas

of $18,661,000

Markets

Walter

Whyte

.

consolidated basis for comparative
purposes.

fiscal

the

for

sales

Net

ended Nov. 30,

year

1952, amounted to

duringr December

accounts

*

1952

compared
with 267
and 2,622,
respectively, a year earlier.

;

-

'

:

*

-

*

*

sales amounted to $26,-

786,687 for the 12 months ended
Nov. 30, 1952.
Civilian sales in¬
creased
$18,758,268, or approxi¬
mately 10%.
Ely

%

>j:

if

Walker Dry Goods
consolidated
net

&

announces

for

come

the

fiscal

year

Co.

in¬
ended

1952 of $5,139,000 before
after provision
estimated Federal tax on in¬

Nov. 30,

and $2,873,000

tax
for

$2.03 per share after al¬
preferred dividend^.
This does not take into account

come, or

for

lowance

any earnings of the recently ac¬
quired interest
in Southern
Bleachery & Print Works which

The

interim

596,

dends, to $2.10 per
common

stock.

divi¬
share on the

preferred

after

equal

In the like period

earlier, net income was
$4,348,421, or $1.91 per share, on
a smaller capitalization.
a

year

Operating revenues for the pe¬
were
$40,949,966, compared

riod

with

$35,293,237.
Income taxes
$5,933,303, against $3,559,664.
Operating expenses of $33,360,144
were
up from $29,408,388 in the
1951 period.

were

*

*

*

first

nine

that

$53,784

reports

City Public Service Co.

a

months of

net income for the 11
1952 of $359,901, after

ot

months

1952

income

points

was

up

the corresponding pe¬

over

Rope

Corp.

will

report

in

in the previous year, M. G. EnNaturally, Washington is
singer, President, said on Jan. 12. the focal point of everybody's
He estimated sales for the year at
eye these days. ^ New things
$11,100,000, compared with $10,- are
going to happen. They're
189,565 in 1951. Volume for the

1951

,

*

*

income

Net

months

Railway

ended

construction

*

of

Kansas

City

Co. for the

Nov.

30

11

$755,000 to

in

progress,

rose

total of $5,868,000 be¬
fore depreciation.
a

♦

*

*

$5,-

was

dinet, to $9.48 per common share,
$397,901
for
income compared with net income of $5,earnings before taxes providing
taxes.
In the 1951 period, when
were $1,393,000 and $661,000 after
019,537, or $8.33 per share, a year
provision for estimated Federal no income taxes were accrued for earlier.
November's
net
was
taxes
on
income.
The regular the 11-month period, there was a
$498,957, compared with $430,728.
deficit of $17,185.
quarterly dividend of 25 cents per
*
*
*
share and an extra of like amount
Revenues were $11,805,101, com¬
Gleaner Harvester Corp. for the
pared with $10,791,199. Passenger
are payable on the common stock
three months ended Dec. 31 re¬
miles operated totaled 19,353,583,
on
March 2, 1953 to holders of
ported a net income of $73,824,
a decrease of
1,145,178, or 5.59%,
equal to 18 cents per common
record Feb. 11, 1953.
from
the previous year.
There
*
#
*
share, compared with $149,072, or
was an operating income this year
37 cents per share for the same
I Western Auto Supply Co. (Mo.) of $842,996, compared with $81,731
period in 1951. Sales were $777,reports for December 1952 sales in the 1951 period.
343, a decrease of $393,470 from
company's

and

Dickey

produtcion of W.

Clay

Manufacturing

are

Proud of the Markets We Make

ahead

of

a

ago,

year

H.

holders at the annual meeting on
Jan. 14. He said sales were $120,000 greater than in the same two-

month period of last year and that
production was up 2,800 tons.
Net
ended

and

*

will

*

go down.
They won't.
They will. They won't. They
will, ad nauseam. In passing
it's interesting to note that
the
new
Secretary of the
Treasury has already thrown

Watch

and

little

a

now

see.

cold

water

on

any

early general tax cut. So much

profit
Oct. 31

for

the

fiscal

year

$688,268, equal

was

to $2.50 per

During the fiscal

year

sjs

sjs

Now what

*

ket.

You

about

the

mar¬

can/always figure

P. that when the market doesn't

Wilhelmsen, President, told stock¬

*.

know what to

expect, it closes
shop.
This is merely a
descriptive term, because it
doesn't actually shut up shop,
it does one of two things.
It
either slows up to a walk or
it goes down.
Sometimes it
does both interchangeably.
up

*

*

*

A few weeks ago

$100,000 ket made

of 3% serial notes were retired,
Flying a record 2V3 billion pas¬
senger miles in 1952, Trans World bringing such debt to $850,000.
Airlines,
Inc.
experienced
the
Dickey Clay Mfg. Co. will spend
greatest business volume in its 26- about $700,000 in the current year
year history, E. O.
Cocke, Vice- in equipping a new plant at Merid¬

President of Sales has announced.

❖

Taxes

S.

cal year ended Dec. 31 were about

10%

going to happen. They
They won't. Ad nauseam.

Co.

share on the common
stock, compared with $652,955, or
a year before.
Income taxes for $2.38 per share, a year earlier. Net
were
the quarter totaled $68,900, com¬ sales
$7,890,860, compared
with $7,532,051 a year before.
pared with $151,073.

We

will.

in the first two months of its fis¬

i

!is

not

for that.

Sales

603,847, equal after preferred div-

sis

By WALTER WHYTE

a

nine months ended Sept. 30 was
despite the fact in¬
$7,679,927, compared with $7,328,come taxes rose $196,000.
Net for 759 a
year earlier.
the period was equal to $1.59 per
Net income for the nine months
common
share against $1.46 per
ended Sept. 30 was $420,887, equal
share a year earlier.
"
to $1.68 per common share, .com¬
*
*
*pared with $445,617, or $1.78 per
For the 12-month period ended
share, a year earlier.
Sept. 30, net income available to
During the first nine months of
the common was equal to $2.11
1952 the company's fixed assets,
per share, against $1.93 per share,
reflecting addition to plant and
a year previous.
riod

Southern
Kansas

of St. Jo¬
Co., for the

report

the net

Wire

greater sales volume in 1952 than

*

Light & Power

seph
out

;

*

*

~

$217,041,923, compared with $225,-v
Kansas City Power & Light Co.
070,342 in the preceding year.
reported net income for the 12
The company said the decrease
months ended Nov. 30 of $5,757,in military

be used for construction purposes. •

Says—

what

the

mar¬

seems

now

&

top. From then on it hemmed
Its flames

and hawed.

fed at various times

were

by opti¬

mistic forecasts and doused at

is being con¬ other times by pessimistic, or;
structed by the city.
The cost of at least
Preliminary figures for the 12
skeptical, statements*
months just ended reveal that the building will $1,650,000, and
*!•
*1*
it should be ready for operation
passenger
miles flown over the
late in the fall of 1953, Mr. Wil¬
airline's
32,000 miles of TJriited
...
In the meantime the public
helmsen said.The plant will have
States
and
international
routes
was
long and stayed long. If
reached a record
total of 2,310 an annual capacity of 36,000 tons.
there was any apprehension
*
*
* *

ian,

Miss.,

which

;

'

Proud of

our

Wire Correspondents

million

Of

New York

Eastman, Dillon & Company

Dallas

>

Rauscher, Pierce & Company

accounted

First Securities Co.

total,

over

domestic

1951.

Net income of Parkview Drugs,

flights

Inc.

for

1,875 million rev¬
Sept.
enue passenger miles with the re¬
with
maining 435 million flown over its
routes

across

Europe,

Chicago

23% increase

a

this

the Atlantic

North

Africa

through
the

and

J. Earth & Co.

sjs

months

ended

Nashville

-'i

Clark, LandstreeU& Kirkpatrick

Houston

r

30

fiscal

year

it

wasn't

ended able.

was

Kansas
.

051,641.

However,

sales

were

was

t-

Oct.

greater than

of
31
a

its

fiscal

; were

year

year

$563,272

earlier,

cording to an interim report.

ac¬

Phillip
that

Small.

gross

against

President,

profit

$1,570,707.

was

The

said

j;

*

*

At first it was a dribble

(isn't it always?) then later it

plans to retire 1,160 shares of its

really started down. The ex¬
planations started coming in.
You could (and still can) get

The preferred stock this year.

as

many

explanations

stocks listed

#

*

I

'

had

Milwaukee

Rada, McElhiney & Morack

on

as

any

UNDERWRITERS

DISTRIBUTORS

*

emphasized here that I
no

pat

explanations.

are

coming

unlisted trading specialists

with good retail distribution

ST.

LOUIS

Newiiard, Cook & Co.
MEMBERS

SCIlERCk, LI CI ITER COMPANY




st.

NEW

YOR£

STOCK

EXCHANGE

FOURTH AND OLIVE
TELEPHONE,

CENTRAL 5585

louis
SAINT LOUIS

I

didn't need them. Some weeks
before the clouds of a

All of the above

thero.
of the

exchanges.

J. Earth & Co.

Angeles

worried

company

'•

Los

be

Well, they did start to back

$1,577,968, off.

H. O. Peet & Co.

City

to

❖

20 stores operated.

Sj!

Rauscher, Pierce & Company

■

Administra¬

in, one that would
to business, what

there

%

*

a new

$31,445,

are

1

particularly notice¬

With

greater in 1952 than in 1951 in the about?

Middle East

nine

the

compared tion
coming
a loss of $922 a year earlier.
be friendly
Sales were $5,970,743 against $6,-

Sales of Crown Drug Co. for the

San Francisco

for

*

Peltasonjenenbaum Co.
LANDRETH BUILDING
ST. LOUIS 2, M0.

Teletype—SL 486

L.D.240

Volume 177vNumber

5188.*.The Commercial and Financial Chronicle

vd

::

(301)

21
n*
Li-

possible - reaction started
gather, and I said so flatly.
•

to and

enough to
trading
would cost .you today, plus
taxes, then a couple of small
buys at this point would seem
in order. But the
profits aren't
made in buying; they're made
in selling.
So if you're not
quick enough to get out, you

Now the question is, will
the market steady itself at
and go up

*
i

again

what.

—or

*

*
•

■

!Last

week

I

said

■

this

in

what

see

:

these levels

add well

can

¥■ Stock Market

three

that before the next reaction have

danger and difficulty.

been

t-

❖

Chronicle.

you're

nimble trader

a

those

They

are

gives
in
at

this

presented

new,

sincere

and

for

our

David A. Noyes & Company
208

SOUTH

other

Officers

Group are An¬
drew S. Mills, Newhard, Cook &
Co., Chairman; Richard Morey, A.
G. Edwards & Sons, Vice-Chair¬
man; Thomas S. Bookstaver, Mer¬
cantile Trust Company, Treasurer,
and Norman E. Heitner, Blewer,
Heitner & Qlynn, Secretary.

buying in late winter.

rather
won't

than

buying

by itself be

Timing

now.

sufficient—se¬

lection will be the key.

Merrill Lynch Adds

The countrywide confidence in¬

Administration

may

in

_

(Special to The Financial Chronicle)

spired by the coming Eisenhower

ASHEVILLE,

the final

Bailey

is

with

C.—David

N.

Merrill

C.

Lynch,

analysis play the most important Pierce, Fenner & Beane, 29
Page
part of all.

Avenue.

Confi¬

more

dollar of

a

earnings

or

dividends

STREET

CHICAGO
Telephone STate 2-0400

OVER-THE-COUNTER

or

balance

sheet

value in

mar-

ket

CHICAGO

investors
pay

for

be

great

a

SPECIALISTS

G* M' Loeb

SINCE

price than
earnings

shrinking

take

might

1926

away.
BRANCH OFFICES

Our
UNION
BOARD

OF

STATION

TRADE

Chicago

on

The elec¬

of problems.

torate has great hopes for an

Lincoln 6563

Summary Free

Administration faces a

new

plethora

BUILDING, Indianapolis, Indiana

PHONE:

Slock

BUILDING,

mediate

change.
this.

against

Request

the

The

Take,

problem

of the money

paid

out

SWIFT, HENKE & CO.

im¬

MEMBERS MIDWEST STOCK EXCHANGE

are

instance,

for

reducing

of

Most

this

facts

taxes.

which will be
the

by

year

new

Republican Administration will go
for

settling

commitments

made

previously by the retiring Demo^

Paul H.Davis & Go.

Administration.

era tic

ity prices

Established 1916

the

Inventories

world.

facilities

Productive

Corporation and Municipal

Debt is

Commod¬

declining all;

are

high.

&

Co.

Established 1933

large.

are

:.

<

Shillinglaw, Bolger

over

high.

are

*

.

v.

*

Securities
'Jh

r
,

*

'

■

►

"

>

'

•

'

•

.

.

-

The number
'*

,

threat of

UNDERWRITERS -DISTRIBUTORS -DEALERS
General

Distributors—Fidelity Eund, Inc.
Prospectus

on

problem is the

one

'

j

war

atomic

an

without

now,

of rebuilding

years

and liberty and

request

know

it,

Another

war.

our

and DISTRIBUTORS

day

of

strength,

capitalism

ends the

UNDERWRITERS

interlude of

an

as

we

INDUSTRIAL SECURITIES

first

the

■

"

■

-

■

-

■

'i

Members
New York Stock Exchange
Midwest Stock Exchange

American Stock Exchange

(Assoc.)

Chicago* Board of Trade

bomb is dropped.
stock

and

values,

as

know

we

exist at that

to

cease

120 SOUTH LA

The number two

Isfe'KS"1

CHICAGO 3

problem is how

to reconstruct the thinking of our

Telephone STate 2-5850

Teletype CG-934

population

Rockford

SALLE STREET

moment.

Street, Chicago 3

Financial 6-0300

Trading Dept.
Teletype CG-405

start,

war

★

them, also

10 So. La Salle

Let a

Peoria

to

self

sonal

restore

Teletype CG 1070

per¬

What

reliance.

-

their

can

Washington do to bring back the

typically American spirit of spec¬
This nation grew on per¬

ulation?

sonal and financial speculation. It

will only wither on controls, pen¬

sions, guarantees and indemnities.

*?ny(thic4 <*/nt?i/cr/ in
MILWAUKEE

&

WISCONSIN

SECURITIES

Public

Utility

Bank and

Insurance

Mutual

Funds

they

Public Utility

self
in

Institutional

.

can

war

will

be

far

will

the

which

Bell System Tele. Connection MI 488




Chicago Phone STate. 2-0933

war

the

status

quo
con¬

remain

followed
run

wave

in

spring.

Barring

will

considerable

winter

or

early

unpredictable

I think the six-months' cap¬

ital market

made

late

a

by

gains of 1953 will be

buying

at

that

time

Participating Dealer*

;

and Distributors in

RAILROAD

Bldg.

.

n

PUBLIC UTILITY

Indianapolis, Indiana
INDUSTRIAL

buying

election

the

into

of

BOND and SHARE

129 East Market Street

conditions, it is likely

market

/•;

★

unchanged.

Corporations

INDIANAPOLIS

CORPORATION

as¬

situation is

reversal

news,

factor

up.

logical

most

that

is

probably

STREET, MILWAUKEE 2

the

the

as

Under such

that

EAST MASON

^ Indiana

recedes, that of it¬
enormous

BONDS

Stocks and Bonds of

only go down:

an

Probably

cerned

225

MUNICIPAL

equity share

our

pointing stock prices

sumption
as

f, ."if.-dti

what

of

If by. master statesmanship, the

threat of

Industrial

Municipal

Industrial

sense

I feel if we see all-out

markets,
war,

SBonch

SPfoc/ti

narrow

happen to

may

,

„

the

In

e-;:

Telephone — Market 4321
Teletype—IP 298
MEMBER MIDWEST STOCK EXCHANGE

I.-

of the

market-

can

leading stock and grain Exchanges

LA SALLE

annual

in

can

dent

and

that it plans to hold itsouting on Thursday, April
30, and Friday, May 1.

nounces

Washington.

of the author only.]

deal

Stock

fiftyof

year

gov¬

ernment

as

wise.

York

a

management

the

This

New

and

be

to

competent

any

of

us

worth

Members

hundred

promises

of stock

wave

The election of Gen. Eisenhower

every

if.

If

Nineteen

all

headache

a

' chance there along.
would
be
a
rally.- I also
[The views expressed
haven't changed on that view¬
article do not necessarily
point.
time coincide with those

reversal of

ST.

LOUIS, Mo.—The St. Louis
Municipal
Dealers
Group an¬

Though stating Gen. Eisenhower's election "is worth a great
deal marketwise," Mr. Loeb sees new Administration
facing
plethora of problems, such as (1) threat of atomic war, and
(2) restoring popular thinking toward self reliance. Looks for

that I didn't turn pessi¬ may be hung up for an indef¬
on the
possibilty of any inite period. From a practical
five-point setback. I foresaw viewpoint I prefer the side¬
a
major shake-out and pre¬ lines. And if
they do rally,
pared for it. I haven't changed
use it to unload the stocks that
my opinion.
But I also said
was

•

Partner, E. F. Hut ton & Co.
Members New York Stock Exchange

.,

,

Municipal
Have Outing

Men to

Outlook

By G. M. LOEB

space
mistic

there

St. Louis

The 1953 Business and

in-and-out.

MUNICIPAL and
REAL ESTATE BONDS

I;

t
I

I

,

i1
♦ ♦

k

'i

22

of

Mutual Funds

R.

Ohio —John

Rickey,- Jr., .is now with W. E.
Hutton & Co., First National Bank

THAT

COMMENTING
cast

SOVEREIGN
INVESTORS
I'rospcctn$

upon

INVESTMENT FUND

645 LAND TITLE BLOC.,

PH1LA. 10, PA.

anti-inflation

-

*

does

count

not

will

1953

believes

"in

the 10 Keystone Funds more con¬

a

eco¬

venient

and

nomic activity as measured

by the

greater

number

Gross National Product cn

a

no

increase

dollar

stant

basis.

general

The

con¬

relatively

promises

do

to

in

recession

industry

at least to have bottomed
and some segments such as

appears

out,

cotton

goods

doing

are

struction

is

industry

better.

for the

Likewise the outlook

points

publication

kinds of securities

of the

length

of

the

boom

caution.

of

factor

It

sees

the

the

will

he

retains freedom of

also

securities

of

He

four

the

either

the very
as
itself a

to

Keystone

choice in the selection of the kinds

con¬

encourag¬

element,

combine

the

p. rpose,

Fund3

that he wishes.

in

ne

or

any

way

seivative

or as agjpessive as fr-s
best judgment tells litui he should
be
under
existing
conditions.
.

will

he

buy

can

the

of

two

hold

in

any

one

his

of
funds)

bend

Keystone

who

to reinvest all Distribu-

want

tions paid by the Funds they own
will find this

Keystone

pre-*

Plan

new

a

particu-

of domg

way

so,

and

they need invest no new capital to benefit from the various extra services

All;

provided by the Pian.

whether
very
with only moderate
investment capital, can save time,
<

investors,

wealthy

"The

ate a

obligation please send

prospectus on

bother, and bookkeeping by using
the services provided by the new
Keystone Open Account Plan.
THE

INAUGURATION

publican

of

Administration

Re^

a

after

20

lerred stock funds, any of the four years of New and Fair Deal rule
bolster
business
confiKfeystohe Common stock funds— should

ar¬

*

Name.
\

v

a

rather

Address.

recession

the

of

past

change his instructions

that

Administration

Please send

me

The

the

better

a

"year

new

meated

9, Mass.

describing
the shares of your

ing

characterizes

high and rela¬
over-all economic

however,

numerous

per¬
conflict¬

ceipt

the

under

a

Open

acquired

purchase and

the total

of

fractional shares

and

his

in

shares

number

the

All

account.

in government

dollar

the account.

ity

and

uncer-

budget

and

reckless

policies will give way to sanin fiscal matters," predicted

which expires June
not
be

30th, next, will

renewed—indicating
will

be

that

relieved

of

of

volume

expenditures,
construction

and in the index of industrial pro*

at

are

charge

to

the

great flexibility and

venience

Plan

will

those

of

the

investors

their

Open

appeal

estates

A

in¬

the leading funds to list

oi

many

church

organizations,

fraternal

groups, trade

unions,^cooperatives,

trustees,
pension funds and educa¬
A
A
tional
institutions
among
their
Even

share holders.

signifi-

more

growth is
concerned is the experience within the industry that once the large
cant

far

as

future

as

investors, whether institutional or

shareholders,
purchasers,
Many thousands of small investors
budget their income to make
mutual fund purchases regularly.
individual,

become

become

they

repeat

"This broader market accounted
last

for

year

sales of $750
in the industry's

gross

million—largest

These sales for

history.

one

year

than 50%
the combined assets of all mutual
alone

exceed

funds

a

assets

of the

an

by

Today total

decade ago.

industry " amount to

estimated

nearly

more

800%

billion

$3.75
more

than

at

are

to

this

vigorous

growth,

view that the American
investing public is only just beginning
to
recognize
mutual
it is

my

funds

as

a

medium for the

r

only

very

a

small

percentage

Diversified

Fund

Investment

upon request

Lord, Abbett & Co.
New York

Chicago

—

—

Los

Atlanta

Angeles

periodic invest¬

Address

State

City

-

mmm

alue

§yas

/line

NATIONAL

income

SECURITIES SERIES
5T

j

LOW-PRICED BOND SERIES

'

may

LOW-PRICED COMMON

from

investment

The

Parker

200

—

SPECULATIVE SERIES
•

dealers

or

120

front

•FOUNDED

VALUE

Broadway, New York 5, N.

32




LINE

investment dealer

FUND

5 East 44th

-

or

DISTRIBUTORS, INC.

Street, New York 17, New York

Gentlemen:

Y.'

Please send

Dept. FC

Prospectus and other data

□ Value Line Fund
Name

..

1925'

YD—

your

STOCK SERIES
PROSPECTUS ON REQUEST

Corporation

Berkeley St., Boston, Mass."

Prospectus and other data obtainable

f

INDUSTRIAL STOCKS SERIES

RESEARCH CORPORATION

be obtained

INC.

SERIES

NATIONAL SECURITIES &

Investment Fund
Prospectus

•

STOCK SERIES

MUTUAL INVESTMENT FUNDS

A Mutual

INC.
NEW YORK

'

> BALANCED: INCOME
) BALANCED SERIES

PREFERRED STOCK SERIES

.

'

NEW YORK

BONDS: BOND SERIES

COMMON STOCKS:

\'

Address

in-

dollars.
Actually, the
mutual fund industry represents
vestment

Prospectus

all

building

or

the

of 1942.

"Despite

con¬

Account

strongly

who

by

individual.

or

Today it is a commonplace for

held

vestor.

"The

tional

the growth of

The shares

no

American life. It includes not
or^y the so called smaller investor
wltl1 a
hundred or a few
thousand dollars, but the large in¬
vestor as well, whether mstitu-

Affiliated

and

The

todian,

The market for mutual
shares is broadening to inelude virtually every segment of

held

Regular

Pennsylvania Compahy
for Banking and Trusts, as Cus¬
by

currents," Increases took

place in the Gross National Prod¬
in

Name...

with

cross

uct,

ac¬

with¬

fear

view

of

was,

ISSUING a year-end statement Oh
prospects for the mutual fund mdustry in 1953 Walter L. Morgan,
President of Wellington Fund said,
The stature of the mutual fund
industry as it', enters 1953 is
greater than at any time in ifs

close

"Reckless
tax

Plan, he receives a re¬ corporations
and confirmation showing

reinvested to speed

publication
a

his

create

Special Distributions paid on the
lies ahead in the final half shares
owned
are .automatically

tively stable
activity which

prospectuses

your Organization and
ten Funds.
u-oa

and

of

detailed

of the year.

1952

50 Congress Street, Boston

policies

out

wishes

to

Account

of full

COMMON STOCK FUNDS

Company

investment

new

with that

the

he

time the investor makes

Each

stabilize pending a
of

close

may

that

In
this
penalty or added charges Munro.
connection, he
stated that the Excess Profits Tax
kind.

of any

sible that the market will tend to

view

tainty.

whenever

West

out any

a

Average, the market as a
whole is not excessively apprais¬
ing earnings or prospects.
"Following its sharp upturn of
the past three months, it is pos¬
more

tended

count

the

said

business will prosper when given

one

He

meeting of
Club,

Lions

half

He may request
of his shares at any

time.

Jones

of what

The Keystone

issuance

the

Hartford.

a chance.
The recent election,
to the said Munro, has terminated an
and may- Administration whose philosophy

from

owned

dinner

a

as

purchased,

shares

transfer

yield ol 5V2%, based on the Dow-

BOND, PREFERRED AND

he

Fund to another.

has

12 times and

ratio of

be

to

Funds

year,

succumbing to the roll¬

readjustment

earnings

Custodian Fund.

securities

of

the

at all times, because he may

been
characteristic of our economy in
the postwar period. With a price-

:ystone

kinds

over
owns

ing

t-

control

continuing

fiting from

and others

CNy.

has

investor

it

their

•

The

tion to add to his investment.

con¬

mixed'affair,"

states, "with some groups bene¬
special circumstances
such as the lapse of the excess
profits tax, or recovering from

Canadian Fund.

•

market should

stock

tinue to be

for many corporations,
increased efficiency from

billion in 1953," Munro concluded,

or

unlikely from or any combination - of these 10 dence and create an atmosphere
here on to contribute materially funds—with as small or as large in which men will risk their capinvestment as the in- • ital and spend current earnings
to the expansion of the economy. an initial
The in¬ and savings, a leading mutual inThe rapid build-up of industrial vestor decides to make.
capacity, the decline in commod¬ vestor may then place more cap¬ vestment fund executive declared
ity prices and the increase in ital in his Open Account Plan at in Hartford Tuesday.
John A."Munro, Vice-President
consumer
indebtedness
also
re¬
regular
intervals
(monthly
or
ceive mention as causes for con¬ quarterly) or at irregular inter-^ of National Securities & Research
vals. But he has no fixed obiiga-. Corporation, in an address before
cern.

no

to

He may be as con-

mament program as

GENTLEMEN: At

due

plants hnd equipment,
may select one cf the standard
"We look for net income of all
Keystone Frograms lhat combine U.
S.
corporations to
increase
the
various
Funds, cr he may about $1 billion to about $18 V2

larly convenient

freedom of choice in the selection

account.

distuibing

a

at

to them.

cost

buy—he

ing."
As

a

investors

of

basic idea of the

The

The

better.

textile

the

extra

for

useful

more

Open Account Plan is complete
flexibility. Not only does the in¬
vestor
under
this
Plan
retain

depressed consumer goods indus¬
try

new

his

to

.

neces¬

show

service for in¬

new

a

margins

best

The purpose of the new And he
may change his program
Plan, as with the several other any time he wishes to do so, to
jjlans and programs developed by keep in step wtih changing ccnthe large investment company or¬ ditions.
"Present
Kevctone
investors history.
ganization in the past, is to make'

policy of dela¬

a

public anriounce-

the ' Keystone Open Ac--

Plan,"

Funds.

vestors.

policy

a

first

the

ment of

tion.

fuither

RIttcnhouse 6-9242

that

CUSTODIAN, Fund's

President, S. L. Sholley, last week
made

been, hurt

have

sarily connote
It

General Distributor

and

prices

Commodity

KEYSTONE

by in¬
flation and would benefit from a
industries

of

CO.

&

duciion.

corporate picfits de.l.'md."

of

may select the cla3s of oonds, preferred stocks or common stocks
suited

to

factor

Keystoneearnings and dividends, according
"Any investor to Munro, is the higher profit

President

Custodian

t^ie different political philosophy
•In, Washington, which it describes
as "anti-inflationary," the current
issue cf Perspective, published by
Calvin Bullock, states that many

stable economy, and

request

BAILEY

A.

fore¬

no

ignore the implication of

can

Sholley,

ROBERT II. RICI1

By

Building.

A MUTUAL

xk billion of such

of approximately $1

amount

whatever

they are able to'save out taxes in 1953.
current income,", predicts S.JL.
Another , favorable

money

(Special to Ihe Financial Chronicle)

CINCINNATI,-

of

ment

With w. E. Hutton Co.

CEORCE

January 22, 1953

The Commercial and Financial Chronicle... Thursday,

(302)

on:

□ Value Line Income Fund

of

Number 5188

Volume 177

the

current wealth

can

people.

"Just

the

as

The Commercial

...

of the Ameri-

public

has

of

insurance,

counts and

savings

firm's

that

HUDSON

mu-

FUND

recorded

Morrisville, Pa., will, upon
pletion,
produce
annually
equivalent of "ten aircraft

eration ended Dec. 31, 1952.

as-

of $1,320,244

in-

an

crease

ac-

building and loan

of

ond

preferred stocks in the total
of $15,000,000, to $87.24
of common stock out-

Trie standing.

This

compares

958,575,

report transmitted to shareholders

car-

$959.58

or

per

share

beginning to accept mutual funds hundred thousand three-inch shells,
for their particular advantages of two neavy cruisers, five nunareu
reasonable income and profit op- army tanks, ten thousand freight

President, brought total net assets per share of common stock.
on
that date to $4,395,825 equal
U. S. & International's net assets
to $24.65 a share ;on the 178,o45 had an indicated value of $65,-

acceptance grows it

well be thousand household refrigerators."
Speaking on Kidder, Peabody &

may

that the mutual fund industry will

Company's program, "Your Money
at Work," Mr. Pettit told the irl-

its sales each year in the

measure

billions.

mate

the

ment of such

widespread .public Fox-Martin,

a

Tho

that

U.

Steel

S.

planning to import iron ore from
Venezuela in 1954 for specific use
in the then fully-completed fur-

Never
before
has
there been such a popular demand
among small and large investors
alike for a prudently managed di-

..

.

f

duce

vestments

and

provide

there is any more

satisfactory

invest

for

or

$36 50

$4.22, respectively,

and

'
'
Dividend payments on the Class
.

A and Class B Stocks for the year

com-

I

com„.«Hoo

put $50

publfc
of

type

idpntifiralion

of mutual funds

as

has-seen.

expansion

an

single

industry,

any

tuaf

xx/iii

IQ^Q

the

Messabi

Iron

Range,

ex-

chemicals

5.1 %;"

in-

U. S. & Foreign paid dividends

report

of $4.50 per share on the first pre-

and

™

drugs!'

i.i%\

merchandising,

4.9r/c\

ore."

LISTING

equipment,

2.1%;

steel,

The balance of $1.37 per share on

i.9%;

the

indication that the

every

+Si^-1S °?

thyesholi
of
year, it

ii

iirst bmion .ctottar sales

supervision

of

its

W

,

Morgan
shares

KARL D.

Karl

Pettit

and

Holland

had been

Company

be obtained from Investment Dealers

2500 Ross

or

Building, San Francisco 4. California

International

share on the first pre-

per

total d.sburse-

state that

The reports

°rBanlz'nB the

CJLOSfcD-END NEW$

allow-

no

has been made for Federal
capital gain tax on unrealized ap-

""iCe

preciation

.

the

as

corporations

have elected to be taxed as "regu-^

3te United States & International

under existing law are relieved of

Securities C

that tax on realized investment
profits distributed as capital gain

o r p o r a t i o n report
combined net asset value of $127,-

the

com-

Pjeted last week and that since W712 as of Dec 31, 1952 com- dividends.
then
several oiders for shares had Pai™with $121^40,953 at the .
g &
been received from Amsterdam.
close ot 1951. The 1952 figure is

PETTIT, senior partner

D.

in

&

S.

feu'rities Corporation and its affillv lated" investment companies and

arrange-

°d distance xrom ,ma- ments for the distribution-of

a-„
turity.

;

,

.

said that

ing mpy

investments

UNITED STATES & Foreign Se-

Morgail) President of

the Fund.

is

U.

ciary
Trustforcompany
o, New Tertt is and
re- .second
preferred, a
sponsible
the'
recommendation
ment $2,450,000.

Friday

was

by Walter L

gain

n
°e 22*; 4^ek,»™ere o
°/dr,a, rytdl■
v'dends-

nn

in

is

capital

was. a

S?g» ZLLXC. "X AZ- ferred and $14.50 per share on the 23%

on

there

common

Hudson Fund is the only open-end mu- paid $5
Pan,

-..-.-continuous

shares"

° railroads! of $3,951,250. All of the preferred
banking, payments and $1.88 per share of

dividend.

;

.

the

of

per

the common during the
aggregate disbursement

Prospectus describing Company and terms of offer¬

dustriai

^etntMaea

s°uree* 01

by^in- second preferred and $3.25

investments

stock

the amount paid on the common

worliwMe^archfor^add«S

in THE

rtr,™

the

dustries and in order of size on Dec. 31, share on
i952 .were as follows: metals and mining, year, an

common

tWsyork
and1953
therewill
is every
indithe"l2l6
mmion WeVnngt'on Fund f" " M,"e p,rt
~
that
piove
n0
the Amsterdam Stock Exchange
pvccntinn
Thus
whill T
hpUcvc °n
Amsterdam
Stock Exchange
1
exception.
Thus, while
I believe
Holland
announced
Mtinn

'
stock

common

coal and limestone deposit,

.investment depends in

to $309.07 per share of first preferre dstock and $10.12 per share
°* common stock,

^

native of Pittsburgh and grandson of William Pettit, discoverer

thfs

i7r!edaon°by mufuT Zd sZSr"and inv^tment dealers. Each
year ,

in

Pe^0?i'ni951 of $61>814,478, equal

1951

wYats *.n naturai ;gas utility stocks ferred stock, $6 per share on the

dependent on the supply of iron

hv

of

other

a

prpafpr

"Thp

close

the

of its net assets in

governments and cash.

largest

vestment1

month in funds plained that since the first steel
to obtain an interest in more than works in Trenton 219 years ago,
100 ditferent securities.
the industry has been primarily
wants to

in

- The

At

cash.

ad 67.8'^

A resident of Ridgeview Road,
Princeton, N. J., Mr. Pettit-, who is

of

who

one

21

a

way

for the person with $1,000 to $10,to

j

%

naces

reason-

a

and

the wan

re-

I do not believe that

able return.

emments

commons; 9.9'/,

of the Morrisville Fairless
Works, the first of which were
the risk inherent in all in- lighted last December.

versified investment that will

of

$82.19

of $35,700,000, to $11.85 per share
of common stock outstanding. This
is ^.-il*compares with net asset value on

investment

acceptance.

the

and

c;tr.pk

R

cli- vestment firm's central mutual 'in the portfolio at the year-end with so.
is favorable for the attain- fund department manager, Milton of net assets invested in common stocks;

."Certainly

000

This

outstanding.

shares

and five hundred and seventy-four

As this

involved.

stock

nacc

^

and

Stock

A

Class

totaled $1.40 per share of Class A
143,548 as of Dec. 31, 1952, equivaor ft(- '
+
„uarp nf rias^
paies with total net assets of $3,- lent to $325.72 per share of first
'
p
"
075,581 on Dec. 31, I9al or $23.43 preferred stock outstanding and, B as compared with $1.35 ana
a snare on the 131,z8l snares tnen after deducting the value in liqui34.57 cents, respectively, for 1951.
outstanding.
dation of the first and second pre».
.
"
Hlfforonf
ferred stocks in the total amount

with cars, three thousand automobiles,

commensurate

the market risk

preferred

oi

ewo

snare oi enass a
1951' asset values on

Class A and Class B Stocks were

of

Tuesday, by James W. Maitland, first

Qa

P
Dec-

with Dec.

the increase, according to tne annual 31, 1951 net asset value of $95,-

sociations, I believe the public is riers, five hundred airplanes, five

portunities

«m

share

per

share

per

42% in net amount

or

assets in its third full year of op-

com-

23

(303)

tual fund, said Sunday that U. S.
Steel's
new
Fairless
Works
at

widely accepted the dollar protection

President

and

now

andj Financial Chronicle

A Prospectus

Foreign owns approxi-

describing the Com¬

and its

pany

shares, including

,

Holland
i

•

•

•

r

•

shares of the big investment conw

Foreign s investment in U. S.

been

made

distribute

•

I.I t

•

•

\
<

'

tM
•

•

#

i
*

•

•

•

•

•

•

•

Dreyfus

•

II

•

•

• t

•

;

•

t

•

I

•

•

•

•

I

M

•

I

I

•

•

a

I
•

•

mutual

•-

•

•

•

I

I
I

I

•

•

•

•

I

I

•

|l
■

t

t

•

•

information may
obtained from

ill

I
•

I

I

II
*

II
•

•

•

•

•

•

t

?

I

be

•

0

I

ment

•

•

•
•

t

•

•

in

the

made

was

or

•

a

I

•

1952,

•

"An
1952

Wou d YOU

available

upon

request.

a criruxr

ADMINISTRATION

F.

INC.

EBERSTADT & CO.
39

New York City

Broadway

assets

investment

1952,
totaling

$11,188,531 as compared with $10,-

496,391 at the end of 1951. Net
share assets at the year-end were equal

per

MUTUAL FUND
of

BOSTON

inc.

possible

TUMB

>-

BOSTON
AM.

v

Prospectus from your dealer or
Investment Manager and

Underwriter

INC.

()

Calvin

FUND

PHILADELPHIA

RUSSELL, BERG &

a

A Mutual

Investment Fund

19 Congress

COMPANY;

Street, Boston, Mass.

feature

Q

was a
relatively low
repurchases," pointed
Bullock.
"Repurchases

^

of

Prospectus on Request

a

in

Q,

-

about 17% of sales,
is epeeially

view

of

the

©PFl

A>

note-

\

average

Q

Fidelity-Philadelphia Trust Building
123 South Broad Street
Phila.

phone:

Klngslc-y 5-3311

v--ofstock pricesduring ^

B

"Aggregate assets of the investvestment

companies

Calvin Bullock

A

1^

B flVi B

is

MUTUAL

the

which

record

worthy

now

by

managed
number

■

.

more

MUTUAL

I IS VEST ME NT FUNDS

than 100,000, without adjustment'.

for duplication in holders of

w

1

.

$1,009.31

at Dec. 31, V •
giving effect 'to 1952 ()-'
repurchases were $235,* ~a''

were equal to
a

Illmw Bllw

ing,

in liquidation of the first and sec- share of $3 Preferred Stock, $39.30

;

of

Mr.

old

■

I lie ft lilfit Pllf

equivalent to

record

volume

v!v!v!v!v^^

■■

United

under

interesting

• • • •

-I

common

International.

&

000,000."

#

••«••♦••••••••••••••••••••••••••

VI V VIU

the

and terms of offer¬

after

sales and

•

Tel: WH 3-4140

•

of

the price

Company, Ltd, on Dec. 31,

year

had

management

•

•

•

companies

Bullock

•
•

I

S.

pre¬

Dec. 31, 1952 were $100,930,914,

on

"Aggregate asests of the invest-

I

II

Dreyfus & Co.
50 Broadway, New York 4 .Y.\

Y.Y
•

I

•

80%

.

llll

•

Y.Y
•

'

•

•

II

II

III

••

ill

>

dealer

your

t

•

$36,532,100

April, 1952. By the end of -A
the year, that fund reported assets
a
of $23,468,000.
"
; 'V*

III

!'-••••
•

of

Net assets of U. S. & Foreign

mu-

Inc. in

llll

till
*

•

HI,
•

containing descriptive

•

• # •

.5'

•
•

I

A prospectus

•••
•

of

"by the offering of Canadian Fund,

•

III

•

in

t
v

'I

Bullock

Calvin

"This record

HI

•

and

of U.

rui/n^TTcri?

ag0_

the firm

by

in large part," Mr. Bullock stated,

••

t • r
•

shares

of

sponsored

llll
•

fund

lit

*"

SALES

funds

\\\*

I

I

deduction

.

III

III

I

.

sold through dealers
States.
:

Bullock, President of the firm.

MM

»

•

•

I

.

investment

•It

•

•

I

III

•

lit

V

•

til#

'

I

•
I

I

stock

second

51atKiS
195? W?oti m°re
of first preferred stock outstand- to $8,819 per
$1,000 principal
toUa statement Released ^Hugh inS and> after deducting the value amount of Debentures, $207.20 per

9

lit

•

•

III
t

of

•

•
t

•

ferred

c

balance^ & International against a similar CAPITAL

open-end

% «■
•

I

t

III!

•

tual

III

•

Fund

I
I

•

TT

III

III

1

GROSS

• •

•

III
llll

i

9
I

the United

.

~

the

of

0

• * #

t

•

•

i
I

I

in

• •

I

• •

•

•
•

s

III

•

IMP

?

mutual fund

•

•

I

#
•

•

•

llll

•

•

v# • • •
j

•

largest

pany

Ml
t

• •

#

the

99%

mately

European .after deducting $39,029,750 repre-

III

t • • • •
•

first

senting indicated value of U. S.

have

.
I

l.l •

the

which
arrangements
to

•7.7.V.7.V.;. country in

i•••••♦•♦••♦••••••• •

J

is

than'one fund.

more

— >

.

■

MUTUAL

<*
r*

.

r*

aDOUt ^
-w--r

•

IV II

x

r

xx

illlfl
'
IM Itl»

.

i

A**

A

ASSETS of the four funds

in the United Funds, Inc.

irkorhnrkpr
UUURUI

-.

X

"TOTAL

11

j

r*

M

r*

STOCK FUND

grouo

at the close of 1952 were $97,793,029j compared with $72}265,012 a
year previous, or an increase, of

$25,530,017.
There

were

f/Wedfo/SSELECTIVE

I

FUND

Axe-Houghton Fund A
Axe-Houghton Fund B

A*

and

the

number

of

shares

*

Write today for your
Free Prospectus!

outstanding for this fund;
was
459,668.
The following table shows the
assets of the

funds

as

of Dec.

1952

KNICKERBOCKER
20

SHARES,

INC.

Exchange Place, New York 5, N. Y.




United

Incom?

United

Science

United

Accair.

United

31:

1951

$60,493,477

$53,324,645

15,027,294

11.523,708

14,173 291

7,417,659

__

__

Continental

r*

A

r»

<+
**

9,198,129 shares out¬

FACE-AMOUNT CERTIFICATE

COMPANY

Prospectus on

request \rom

*

I

C*
<*

standing in the four trusts, com¬
pared with
6,877,348
shares in
three trusts a year before.
Re¬
cently Continental Fund shares
oHered

<*

c*

Republic Investors Fund
v-

were

*»

c*

your

Investment Dealer

<■*
<*

SYNDICATE OF AMERICA

or

r*

490 Benedict Avenue

<*

Tarry town, New York

<*

<*

Prospectuses of these,
in 148

companies available at offices

principal cities of the United Slates or from
and investment manager.

the national distributor

4*
4*

Gentlemen:

4*

Please send me a Prospectus.

4*
4*

{f/S

DIVERSIFIED SERVICES, IHC.
Established in 18 94

MINNEAPOLIS 2,

MINN.

4*

Name

4»

Address

4*
4»

City

State—

4»

2,101.967

%

24

(304)

creased attention

Bank and Insurance Stocks
By II.

apprehensive about the out¬

look

for

As

This Week

into

Aided

earnings

higher

by

and

dividends

shares

bank

vorable

market

At the year-end

the prices at

as

loans

reflecting

higher
ume

on

in

increase

sharply

interest

other

from

generally

in¬

„

creases,

the payment of extras or

numerous

dividend

developments stimulated

The

institutional

greater

stocks.

bank

interest
stable

Being

certain defensive

naving

was

the teristics

reflecting

higher

was

inspired

rates.

sources

earnings

the declaration of stock dividends.

The hardening of money rales also
helped the return on investments.
Income

in

encouraging and prompted a
review of dividend policies which

greater vol¬
loans as well

a

of outstanding

an

was

increase

most

in

the results achieved

over

earn¬

increased

Ine

Operating earnings of the group
showed a gain of approximately
15%

gross

were more

absorb

the end of the previous period.

1951. Interest

in

than sufficient to
operating ex¬
penses and higher taxes.
The fi¬
nal result was a general improve¬
ment in operating earnings.
ings

a

most stocks were

considerably above

increases

These

New
fa¬
1952.

climate,
enjoyed
throughout

investment

proved

the

shares

a

in
and

charac¬

attracted

in¬

trend

of

Bank

Manhattan

35

„

Trust

Bankers

reached

47%
38%

49%

46%

Exchange

65%

66%

_

Guaranty Trust
Hanover

bank

57.1

443/4
63

-

-

160

-

-131

411

-

-368

361

298

+ 63

361

-

-285

4%
+ 1%
+ 4%
+ 35
+ 4%
+ 3%

100

94%

Manufacturers Trust

64%

„

J. P
National City

283

New York

117

Trust

601/g
248

47%
113%

46%

Public National

+

22%

52%

48%

—

238

269

_

50%-

69%-

+ 19

'

stock

vious

-

23%-

-

87%
20%

in

levels

peak

While

has

become

&

associated

He

Beane, Patterson Bldg.

formerly

Axtell &

cashier

for

Eisele,

65%291

57%

-238

-

53%-

-

45%

118%--103

1%

49%-

-

273

+ 31

44%

-239

as

a

City.

registered represen¬

their

in

Madison

655

Mr.

with

Redelfs, Inc.

Gould

Toplett &

the

trend

in

was

of

was

sub¬

made

Offices

below, we
the market bid prices at the

with the

•

Oakland
San Francis**

Fresno

provide

San Luit

point change between the
and the price range

for the seventeen major
York bank stocks.

1952

Trust

showed

fswcnble

a

complete

Salinas
Lai

""th

Ventura

of America's

Pasadena
Glendale

fastest

growing

Empire Trust
than the average as
aid United States Trust, Nauonal
City and Bankers Trust.
the

action

the other stocks

of

several

not

was

so

Angeles
Diego

Laguna Beach
Long Beach
Anaheim

area

Whittier

Beverly Hill*

First California Company
Incorporated

Members

San Francisco Slock

more

While

Las

San

Redlands

**

increase.

14%

gained

Vega*

Bokersfield

coverage

Santa Barbara

the

largest gain in points although the
percentage gain for the year of
21% was not so large as that of
Chase National which was higher
by 26%. J. P. Morgan & Co. also
poHe

Obispo

Monterey

together

periods

Guaranty

WM

Son Jote

tabulation

end of the past two years

HI

Stockton

prices

issues

Wm

Reno

Sacramento
Santa Rota

61.2.

gains at tne same time
others were registering declines.
The average gain for the group
during the year, however, was ap¬
proximately 8%.

two

previously

Eureka

26

r

The pre¬

stantial

the

was

City

31, 1951 to

index

reached

Some

of

Exchange

Los Angeles Stock Exchange

Midwest Slock

300
Pr ivale

Wire

Exchange

Montgomery Street
to

New York,

•

San Francisco

Chicago and other leading Eastern eitiea

favor¬

reflecting disappointments
earnings or dividends, the per¬

able,
on

formance for the group as a
most

was

whole

favorable.

CUR YEAR-END

COMPARISON & ANALYSIS of

17 New York

John 0.

UNDERWRITERS and DISTRIBUTORS

Legg Admits

Three New Partners

City

Corporate and Municipal

Bank Stocks

Securities
Will be sent

on

request

Kirk g»at r ick-Pettis

LASRD, BlSSELL & ftlELDS
MEMBERS
120

NEW

YORK

STOCK

EXCHANGE

BROADWAY, NEW YORK 5, N. Y.

Telephone liArclay 7-3506
DIRECT

WIRE

Sphirmer, Atherton & Co.

Congress Street

49

Eoeton, Mass,
Tifft

PONT

Street

650 South

DEL.

R. Emmet

Spring Street

Bradley

Cyril

M.

95 ELM

STREET

NEW HAVEN,

BALTIMORE,

LINCOLN LIBERTY BUILDING

CONN.

PHILADELPHIA, PA.

Md.

—

John

C.

Legg & Company, 22 Light Street,
members of

Exchange

the New York

other

and

OMAHA

Murphy

Los Angeles, Calif.

BUILDINIG

WILMINGTON,

Investment Banl<ers

Street

Mitchum, Tully & Company

Springfield, Mass.
DU

Pearl

Hartford, Conn.

Brothers

1387 Main

Company

Bell Teletype NY 1-124849
CONNECTIONS TO

Schirmer, Athcrton & Co.

Stock

540 Omaha National Bank Bldg., Omaha 2, Nebraska

Telephone Atlantic 3380

—

Teletype OM 95

LINCOLN OFFICE: 618 First National Bank Bldg., Lincoln, Nebr.

Exchanges,

P.

that R. Emmet Bradley,
Arrell B. Hoblitzell and Cvril

M.

Murphy have been admitted to

announce

UNDERWRITERS

•

DISTRIBUTORS

DEALERS

general partnership in the firm.
Mr. Bradley
is Manager of the
firm's
Trading Department in
Baltimore and Mr. Hoblitzell is in

of the

charge
Mr.

TEXAS
t

•

Murphy

firm's

New

Stock

William J.

Shawell

Department.

charge of the

in

is

York

office

at

76

UNDERWRITERS

—

DISTRIBUTORS

—

DEALERS

Beaver Street.

.*

Municipal Bonds

Prescott Adds to Staff

TEXAS

CORPORATION

MUNICIPAL BONDS

SECURITIES

(Special to The Financial Chronicle)

•

Corporate Securities

CLEVELAND,

Ohio —Karl

Baumholtz has been
of

staff

Prescott

F.

added to the

&

Co., National
City Bank Building, members of

Members Midwest Stock Exchange

*

the New York and Midwest Stock

*

*

Exchanges.
TELEPHONE CA-9944

Merrill

TELETYPE HO-395

Lynch Adds

Siiawell & Company

(Special to The Financial Chronicle)

ST.

CITY




NATIONAL

HOUSTON

BANK

LOUIS,

Mo. —Howard

T.

Bland, David E. Dale, William J.
BUILDING

2, TEXAS

PIONEER AMERICAN INS. BLDG.

Noonan, Clarence C. Spiegelhalter,
Jr. and Charles A.

511

Pierce,

Fenner

Locust Street.

\

HOUSTON 2, TEXAS

Weygandt have

been added to the staff of Merrill

Lynch,

at

New York

Kaufman.

thus upward, tne performance by
the different bank stocks was not
uniform.

office

branch

Avenue,

from bi.i

rose

Dec.

,
-

change

Lynch, Pierce, Fen- tative

"The American

011

in

the

more

of New York

prices

when it

1937

New

%

index

stocks

Philip R. Gould has become as¬

sociated with Hirsch & Co., mem¬

Redelfs

ner

.

E. bers of the New York Stock Ex¬

with Merrill

re¬

a

bank

at the end of 1952.

for

3%

best

where it stood

37%

—14

99

Trust-'.

+
-

the

Banker"

443/4

137

23%

States

48%-

+ 10

-

408

Irving Trust

United

53%-

4%

-

156

Bank

Morgan,

+

31%

-340

-

394

Empire Trust
First National

37
382

+ 22
.

-

As

snares.

York

than tifteen years.

show

1952

Price Range

%

+

357

43%

Chemical
Corn

34%

"

52

Bank

National

iChase

Point
Change

1951

379

Bank of New York

New

In

Dec. 31,

31,
2

J 9

rising

a

With Hirsch & Co.

Lynch Co.

Neb. —Robert

OMAHA,

was

sult

Market Bid Price
Deo.

invest¬

in

resulted

bank

tor

in

Thursday, January 22, 1053

(Special to The Financial Chronicle)

in¬

pension

as

improvement

climate

ment

high level of banking activity over
the past year.

in¬
im¬

an

funds

new

Merrill

switch¬

was some

bank stocks and tne

This

'

creased

result there

a

v..

R. EL Redelfs Joins

equities.

of

types

and other institutional funds grew.

Bank Stocks

—

other

vestment of

JOHNSON

E.

where investors

grew

ing

York

The Commercial and Financial Chronicle

.

&

Beane,

Charter 3569

Teletype HO 339

Volume 177

Number 5188

..The Commercial and Financial Chronicle

.

(305)
combination affair with
mediate

Our

Reporter

the

Governments

on

The

Government

market

-

1%%

It

-To

2%.

had

been

that

a

strong
change in

saw

be

fit to push the rediscount rate

from

1%%

sure,

to

around conditions
existing which the Fedrediscount eral Reserve authorities do not
rate was imminent, but these had believe to
be in the best interest
been around before and
nothing of the economy as a whole. Raishad
happened.
Last
Thursday, ing of the rediscount rate may be
however, the authorities took the one of the
ways
in which the
bull by the horns and announced
rumors

revision

upward

Evidently
ities

the

believe

when

the

monetary

the

tangible

falfpn

in

time

rate,

author-

has

action

come

be

must

to

authorities

prevent

the

loan

are

trying

boom

from

bringing about another inflationspiral.

ary

what

a

believed in

some

2%%

There is

no

doubt but.

warning has been sounded

certificate

•

bond.

quarters

likely to offer
and

Others

a

6-year

hold

to

the

maturity
five-year note might be used,
as
well as an intermediate-term
obligation

the

market picture
whole, and with volume and
money

activity'on

ha'e

the

been

ilsht "sTde""there

however

,2

fairlv

.

Financing

rise

in

the

rediscount

rate,

which may or may not result in

schedule

new

a

There
whether
,

question as
increase in the

the

price weakness, which means
they are being acquired near the

on

is-some

to
re-

of

JXf

mircb^ of ih? Wa
OfIherange^Statl Mdt cob
to"aCStire setocted^teue,

^ ®

thp

concerned.

The

rediscount

^

rate

^

to

^
'
^
f
increase may also have an influ-«
town commercial banks,
'tone because of the
easiermoney ence upon the coming refunding i*
V h.ave heen putting
-conditions that are expected 'to ;of the
Treasury, which will prob-work,: m not too sizable
develop. :
V;
v;.
: ably*be. reflected in;somewhat
\fS,2Sf:
.■*'a higher interest rates for
the issue
?
First Change Since 1950
0"i/
iUtf
or
that wiU be offered in and the2%s due Sept. 15, 1967-72
:
What had been considered "open
exchange for the maturing obliga- JheFe has, likewise been some
mouth operations'! turned out to tions.
As to what kind of secu,u7.lnf
the 2 /8s due 1958. It is
be a
reality, ; when the Federal rities the Treasury will use in the *ndlcated that the loan curve has
v

of

ner

the

organization, which

composed
been

of

brokers

who

twenty-five

more

will

years,

be

on

Thursday, Jan. 22, 1953,
Cavanagh's Crystal and Emer¬

at

ald

Rooms.

Among the
be

John

Hawkins,

formerly

of J. B. Roll &

T.

guests will

McCormick

and

J.

Mann,
President
and
Chairman respectively of the
American Stock Exchange.
Philip

G. F. Ckilds « Co.
S.

invited

Edward

Co.,

Inc.,

has become associated with
C. F. Childs and
Company, 1 Wall
Street. New York
City, specialists

H.

Diamond

is

entertainment

ing him

Chairman

of

committee.

the

Assist¬

George J. Bernhardt,

are

Leonard C. Greene, Marcus Kauf¬

Charles Leichner, Milton E.
in government bonds and
munic¬ Reiner, Edward A. O'Brien and
ipals.
Francis X. Gaudino of the Ex¬
man,

change staff.

Midwest Exch. Member
CHICAGO, 111. —The Executive
Committee of

the

Midwest

Stock
TORONTO, Canada—William H.
Ramsay has become a partner in Exchange has elected to member¬
ship:
C.
the firm of
Courtney
Keller,
Jr.,
Frame, McFayden &
Co., 25 King Street, West, mem¬ Blair, Rollins & Co., Inc., New

bers

of. the

Toronto

Stock

Ex¬

York, N. Y.

"

5 & 20 Club to Meet
Jack

With Braun, Monroe

•

(Special to The Financial Chronicle)

i

Feinstein, American Stock
MILWAUKEE, Wis.—Frank H.
Exchange Five and Twenty Club Schwaller has become associated
President, has announced that the with Braun, Monroe and
Co., 735
annual meeting, election and din¬ North Water Street.
>
'
•

-

»

INQUIRIES INVITED

,

-

.

•

+u

Reserve Board

January 15, for impending financing is
largely a
August 21, matter of
guesswork. However, it
1950, raised the rediscount rate
,t'
from 1%% to 2%.
It had been seems as though the market itseil
rumored for some time that the by its own action is
looking for a
the

first

on

time

since

...

rediscount

,

tapered off

of

,

The

taken

was

But during

rumors

that

an

had

upward

not

there

to

change

that

was

of

the

largest

to

as

not

the

and

these insti¬

and,

a •:

.

.

originating in

fastest

growing

Florida's

West

invited

are

pertaining

or

this

to

executive

an

Federal

' (

officer

Association,

Coast.

to

area.

on

,

i

£
i

Resources Exceed $46,000,000.00

-

obliga-

v

FIRST

FEDERAL

SAVINGS AND

LOAN

,

OF ST.

ASSOCIATION

RALEIGH
ST.

PETERSBURG
W.

GREENE, President

PETERSBURG

1,

FLA.

im¬

one

as

why
be

Municipal Bonds and Corporate

a

among

Securities

to the effect

it

might have on the econ¬
which many consider to be

omy,

about

dead

on

again there
with

the

there
in

matters

Inquiries receive the prompt attention of.

\irginia Securities

no

the

was

likely to
change in the rediscount,
which

about

us

many arguments

advanced

was

write

few

a

went and

revision

However,

been

concerned

Trust Officers and others handling
fiduciary funds

the past two weeks
stronger than ever

were

minent.

as

partially-exempt

would

existing rate.
,

far

as

are

+

the

rowings.
However,
Thursdays came and
action

c

result,■ the money has been put to
work in the Government market

be upped,
strong trend in
loans, especially in consumer bor¬

because

i

rate

,

j

tutions

center

were

now.

impending

B BANKERS BOND

Industrial & Utility

Then

~

INCORPORATED

the opinions that

Trading Markets.

financing

not likely to be a change
rediscount rate until at

1st FLOOR KENTUCKY HOME LIFE BLDG.

was

the

LOUISVILLE 2, KENTUCKY

Retail Distribution

least this operation was out of the
way.

Nonetheless, the

powers

INVESTMENT

that be

THOMAS

STRADER, TAYLOR & CO., INC.

H.

W.

E.
J.

DEPT.

GRAHAM,

C.
M.

INVESTMENT

Manager

WOOD

BOHNERT

WILLARD

LYNCHBURG, VIRGINIA ID 39 TWX LY 7?

U. S. TREASURY

P.

CHARLES

McNAIR

P.

LEWIS

M.

ROBERT H.

FLTTER

DEPT.

HANNAH,

ROBERT

Asst.

C.

Mgr.

KING

CONWAY

JOHNSTON, JR.
E.

PURYEAR

STATE
and

MUNICIPAL

Mead, Miller & Co.

TELEPHONE I4MI
Wi?

SECURITIES

Members
New York Stock

VIRGINIA
N. CAR.

XYIICHBURQ, VA.

&
i

V CORPORATE V(it & 63

bonds'
Active Markets in Local Securities

v'&

UNLISTED SECURITIES

*
;

1P^:: iW*;:VPi*:;

W&m

& Co.

Direct

ST., NEW YORK 5

WHitehall 3-1200
231 So. La Salic St.

45 Milk St.

BOSTON 9

CHICAGO 4
■

1

ST 2-9490

:

'

•




HA 6-6463

(Associate)

Philadelphia-Baltimore Stock Exchange

INCORPORATED

15 BROAD

Exchange

Stock Exchange

MUNICIPAL LY82

MUNICIPAL BONDS

ROANOKE, VA.

Aubeey G. Lanston

American

W. VA.

corporate stocks*

i

Private

Wire to New

York Correspondent

Carl M. Loeb, Rhoades &

SCOTT, HORNER & MASON, Inc
LYNCHBURG,

UNDERWRITERS

■

.

v...-

111 E. Redwood St., Baltimore

VIRGINIA

and

is

have

Exchange members for

than
held

■

■

RUSSell HawkfllS With

change. ;

loaning rates, discount rate will eventually re-'
there has been a not
unimportant suit in higher rates for bank bor{airl
large
amount of buying m selected isrowings,; but If this should
■sues which
jyere,acquired as prices the case,, it would not be an unigave ground.: Despite , the. rate favorable development as far as torn
n™^
change by the Federal Reserve, it-commercial bank revenues
are
is believed that short-term,
obligations will soon be showing a better

ii

n

SnTeeZt "a"

the

■«

Sle takinffi^ewrtef to cirta
iSSues
of
T^asurvdbUratton? Frame,
McFadyen Go.
Private
oension Ss
rlVaiG. pension
It
oateT have'beek mcktogVn fairlv
Admits
Wm.
sizerblocks here
Ramsay

nrrfpr-tn
rpfarH thp fnrppc
token in order
Pocaimn
to retard
u
*
the forces K-ulUnaS, it
by the Reservi
Board, and it is
that could bring about a repetition
hoped that this will be sufficient
eood
anri there
of the inflationary spiral.
to bring about the desirable reof the two loneest malnritiP9 The
Although all sections of. the suits.
Government market
have
been
'
"
securities are well worth buying
somewhat under the influence of
+Rumors on Treasury
in

for these securities not too
repre¬
sentative, because it is mainly an
order market.

Vice-President

Despite all the uncertainties that
in

coming into the
somewhat - increased
amounts, according to reports, and
this has tended to make
quotations

Russell

tractive

a

been

in

one-year

Long Maturities Deemed At¬

are

have

,

a

or a

as

tions

part of market

Ls

opinion that

the

monetary

an

is

2V8%

a

2%, and this
from seems to put the financial comthere munity on notice that there are

re(jtsc<Hint rate

to

was

for the up- up

package.

inter¬

an

issue to be

that the Treasury is

By JOHN T. CHIPPENDALE, JR.

pretty well prepared

term

25

DISTRIBUTORS

Tel.:

Baltimore—Lexington 0210
.

Bell

,

Co.
.

•

-

■'

—■>

,

.

■

2, Md.

New York—WHitehall 34000

Teletype—BA 270

Financial Chronicle..

The Commercial and

26

Thursday, January 22, 1953

.

(306)

Speaks Aider the Turn of the Year

Business and Finance

STATEMENTS IN

MORE
way

lessens the

either were
publication in today's
issue, or for mechanical reasons, could not
be accommodated herein. These will appear
Quite

in

♦Session of the

83rd Congress

of the new

tions

the in¬

legislative problems, with which the
will wrestle in the months ahead, are
evident at this time.
The budgetary enigma is high on the priority
major

the

new

1953

enter

we

industry

dark.

a

Although

there

dustrial

high level.
our

upon

at

In

summary,

we

will continue at

a

as

least

standpoint

the

Almost

than have existed for many years.

there has been some

the

continously

buying.

Company

antici¬
well
time,

of supply

and

demand.

since the war,
abnormal stim¬

it

First

the air. It is expected
that
approximately 100 more sta¬
tions will go on the air during 1953.
This will bring the total number of
television stations to almost double
the number of those operating at the
tions going on

the

not

think

was

should

be

on

the

buying
basis

regulated,

'

With production of raw materials rapidly catching up
many fields of consumption and our manufacturing
facilities expanded far and above what they have even
been before, it seems that the tide of inflation has sub¬
sided.
Shortages of either raw materials or finished

in

.

of

in

than

evidence

in

less

are

was

the case

some

increasing

com¬

years ago.

there

Conversely,

is increased

and

petition for the wage earner's dollar. The overall cost
of living seems at last to have stabilized and in certain
categories prices are down somewhat. This is, of course,
deflationary. If labor and management can control ex¬
penses

and

ciency,

we

continue improvement in productive effi¬
shall seea still higher standard of living in

"J

■<

-

-

Any rational person who' has gone through the col¬
lapse of 1932, and the inflation of the I940's, can hope
only for a stabilized economy. In fact, all our govern¬
mental efforts at control have been
the

wide swings.

failure

in

our

but

so

A controlled

intended to prevent

economy

is doomed to

complex society of today.

far

as

Regulation is
possible, busi*ess should police

an

age

growth which we have come to expect each year,
factors seem likely to promote this growth!

feveral

1953

First, there is the fact that businessmen generally feel
greater confidence in the economic climate. Next, the
eld bogey abcTut inflation reducing' the value of life
insurance is not applicable in'a more stable economy. In
fact, if we are to have some deflation, then life insur¬

meeting

good outlook

continue to do so.

ance

Some

in population and ex¬
pansion of the economy. Certain
other factors, however, have had a particular effect upon
growth

for

cash

is

more

than

ever

a

good buy.

This sort of thinking may become the basis for
Stanley C. AHyn

demand

goods

regards the life insurance business, all signs point
excellent year. It seems reasonable to expect not
the usual substantial increase in dollar amount
written, but also an increase over the normal percent¬

the extent to which
current needs have increased

increasing

managed economy.

a

only

.this increased need has come from

the

economic forces, reasonably
the socialistic implications of

a

The real reason for a

of

replace

will

As

in the industry is

and should

an¬

all-

be relaxed, so that natural
.

to

current needs.

those

well be

full scale,

may
no

itself.

the

which I do

come,

likely,

appears

that-

prooer,

These influences have
Unless some new

picture.

spent their force.
war scare
should

there

this country.

pent-up demand of war years, then
forward buying as Korea came into

result of new television sta¬

present time.
(3) The replacement market which,
up to this time, has been infinitesi¬
mal, is becoming an increasingly
Benjamin Abramg
important factory in sales. - Larger
picture
receivers
currently ' being
produced, are causing those who purchased television
receivers, a few years ago to now discard their old small
picture sets, foi the more satisfactory perforrninfi cirid
larger picture receivers produced today.>' '

to

ulus

The opening of new markets




recent years.

equipment industry in general can

from

1953

assumption and on the
our
large military ex¬
penditures- will continue for some
months, even if levelled off, it seems
reasonable to expect that business
H. L. Amber
will sail along on a fairly even keel.
The
change of Administration in
Washington has stimulated a new confidence on the part
of business leaders that the controls of our economy will

expect that sales .of life insurance
high level, mortality experience will

pate a good year in 1953. In many ways this may
be the most normal year we have had for some
at

war'in

'

President, The National Cash Register
office

•

••

.

forces

this

Oir

favorable effect on long-term

favorable, and we will have available to us a supply
investments which will provide returns comparing

The

-•

because. both

major

a

basis

Government bone's are of¬
attractive to institutional in¬

STANLEY C. ALLYN

.

have divided themselves off into

out, world-war.

in recent years. The in¬
may raise somewhat

favorably with those obtained in

'
profits. The '

another

period in which most

each to await the other's move. Each
that move will

other Korea:—but*

.

be

powers

misstep.

grave

..cidents and

and long-term
are

to be approaching the end of

seem

unlikely. There will be irritating in-

International developments and their effect
of course, uncertain factors of

rates which

a

side,

economy are,

(1) Lower inventories at all levels,
manufacturer, distributor, and dealer,
(2)

mortality

companies

vestors, this might have a
interest rates in general.

Seldom, if ever, has the electronic industry had reason
optimistic over its prospects for the future
Certainly 1953 promises to be a healthy

well

*

importance. It is the belief of many that the
U. S. Treasury will take some steps to refund into longer
maturities a portion of its short-term debt. If such ac¬
tion is taken

AMBER

have
prepared for war, but more so be¬
cause the Stalin
camp must realize
that war at this pcint ccu'd not gain
worth-while
advantages
for- their

,

great

fered

of

andv hopes

Partly

result of constant¬

than they did in 1952, but the requirements
public utility companies should continue at a

the

we

world

the

be

less money

of

L.

the drama of history—a

worries

divergent views as to what will'
field of investments during the com¬

railroad

and

in

two armed camps,

are

favorably with those obtained

to feel more

as

of

The con¬

Phonograph Corp.

principal factors pointing toward this.
favorable condition'are:

In 1953
scene

ing year, we believe there will be a satisfactory supply
of investments at interest rates which
will compare

of

as

military operations.

rates has been the

itself

age

may

HARRISON

mortality- experience

tinued trend toward lower
•

be available in the

ABRAMS

sales,

•

health conditions, advances in medical
science, and a rising standard of living. Life insurance
is being made available to a greater proportion of our
population each year because scientific underwriting
practices permit the approval of an increasing percent¬
age of the applications received.

between the Chief Executive and at least
Republicans in the Congress—a relationship which
has been somewhat strained in past years.

from the standpoint of

"

in

President, Berkshire Life Insurance Company

a^contijpiiance of

improving

ly

relationship

one

•'

'

-

field

reach its highest point of the year during the
first half. By the end of the year business may be at
lower levels than in the early months but such a decline,
if it comes, should not be great.
ity

;

which was affected only to
minor extent by deaths arising

from
Adatr.

latter

quite possible that general business activ¬

I think it is

ever

1952,

of

Malcolm

than

..

favorable

the

This

might expect in this

one

be maintained.

ucts will

as

greater

is

than

stantially higher in 1953 than in 1952, but as far as we
now normal production of our regular prod¬

insurance should

There should be"

the

than it has now

large

anticipate

a

before.

has touched upon some of the

President, Emerson Radio and

much

machine.

by

done

Concurrently with the production of cash registers,
accounting machines and cash registers, we are manu¬

Company

for the future

protection

major activities slated for the legislative chambers of
the Congress.
As the 83rd Congress gets under way,
we can look forward with certainty to a closer working

BENJAMIN

be

mechanization.

high level as it is our
belief that the need for this type of

,

summary

is

stands ready to assist in¬
preparing their security

continue at

hearings slated for

short

cl

facturing certain defense material of a rather compli¬
nature.
Output of defense material will be sub¬

Sales of life

tries.

revisions in the

This

by work still being done by hand which

is represented
cou

well as
provide funds for housing and the
capital needs of the nation's indus¬

abroad.

early February on possible
Taft-Haftley Act, labor-legislation will
receive a gobd deal of attention from the Congress. The
Republicans )now have the opportunity to make the
necessary changes in
this Act—changes which previ¬
ously were opposed by a politically minded Chief Execu¬
tive. For the first time since the passage of the TaftHartley Act in 1947, we may look forward to genuine
collective bargaining unfettered by unwarranted gov¬
ernment interference, or government, support of either
disputant — as was the case in the last year's steel
dispute.
>'
Economic controls fall into another area of legislative
action.
The price, wage and rent controls, under the
Defense Production. Act, expire April
30, while the
priority and allocation authority ceases at the close of
June 30. Long since anything resembling effective con¬
trols machinery has disappeared.
For. the most part,
prices are below ceiling levels. Under existing condi¬
tions, the Congress may permit wage and price controls
to expire, while retaining priorities and allocations over
certain materials—at the same time placing controls
generally on a stand-by basis.

the

to

ready exists but where equipment is use is either ob¬
solete or less efficient than newer models.
The other

to

whether any substantial tax reduc¬
tion can be effectuated at this first Session of the new
Congress. Although, the Excess Profits Tax is due to
expire on June 30, and the individual income tax in¬
creases on Dec. 31, a clarification of our fiscal require¬
ments is the first order of business. J?am hopeful some
Telief can be granted this year to corporate and in¬
With

today for machines which can
keeping of better records at lower
One is where some degree of mechanization al¬

cost.

planning cur activities for

programs

new

two markets

are

contribute

dividuals in

yet uncertain

dividual taxpayers.

are

we

several

case

own

product development.

There

year

forward to a realistic appraisal of foreign
aid programs—to the elimination of the waste and in¬
efficiency which have become all too prevalent in the
It is

and

in the life insurance business, al¬
though what lies ahead is dependent upon many events
which cannot be predicted with any degree of accuracy.
As in the past, the
life insurance
good

our

cated

President, The Penn Mutual Life Insurance
As

In

which will do

machines

building

users.

introduced and we are today
carrying out the heaviest engineering and tooling pro¬
gram in the history of the company. A substantial part
of cur current volume is represented by machines which
were not on our line a few years ago.
This is one evi¬
dence of the close relationship between sales volume

MALCOLM ADAM

another

toward

their

models have recently been

important effect on

We can look

administration of our programs

for

achieved by the industry thus far.

0.0

have remained

effort

million television
receivers will be produced and sold in 1953, added to
which it is expected that approximately ten million radio
receivers will likewise be made and sold.
The total
dollar volume, including equipment for military use, will,
in my opinion, result in the largest
record of sales

list.
Mr. Truman's legacy calls for a prospective deficit of
$9.9 billion in the fiscal year, which begins July 1. This'
budget will not stand up under the scrutiny of the Con¬
gress and the new Administration;
Mr. Ti'uman waS'
wise enough to point out that "the President-elect has
responsibility for i the amounts included in this
budget, and wili be entirely free of course, to propose
changes in them." These changes will be forthcoming.
For the first time in many a year we are in a posi¬
tion to get the most out of our defense dollars.
The
searchlight of Congressional scrutiny will finally pene- ,
Irate those comers of the defehse' establishment which
too long

ment
more

Summing it up, no less than seven

clearly

Congress

prospect of any change in these conditions.

no

see

In this situation, the real problems as we see it, is to
devote a maximum of engineering and product develop¬

;

but these three will have the
business in 1953.
Another factor which is expected to contribute mate¬
rially towards improved sales and profits during 1953,
is the increased production of electronic equipment for
the armed services.
It is expected that the industry
billings of such equipment during 1953 will be consider¬
ably greater than in any previous year.

Administration. However,

Republican

We
.

There are other factors,

specific leg¬
the present
the recommenda¬

awaits

..

"Chronicle."

the

issues, of

subsequent

most

Dwight D. Eisenhower. The
program to be undertaken during

islative

late for,

too

—EDITOR

future con¬
relations with

auguration of

number of statements

a

received

Administration be¬

policies, started by the Eisenhower
coming into office, will determine the
duct of the Korean War and our future
the free world and the Communist world.
At this writing, a few days yet remain until

fore

time premiums, the cost of fringe benefits when people
are
added to the payroll, have all combined to focus
attention on mechanization in the eyes of management.

SUBSEQUENT ISSUES

enormity and immensity of the
tasks to be faced and the decisions to be made.
''
Prospective legislative action during this session oi
the 83rd Congress falls into the framework of the two
overriding problems faced by the Eisenhower Adminis¬
tration—the Korean conflict which remains as the focal
point of military and foreign policy decisions, and the
stabilization ol a free, prosperous economy at home
without dependence upon inflationary budget deficits.
.The continuing re-evaluation of foreign and military
is no

chines, adding machines and other products which will
reduce costs. High labor costs, the 40-hour week, over¬

.

,

registers, accounting

ma¬

stantial reinvestment progrm.
in the stock market may

well

Many
come

a

man

to" the

Continued

a

sub¬

with profits
constructive
on

page

28

Volume 177

Number 5188

-...

A pretty

The Commercial and Financial Chronicle

little girl named Nancy lit

shiny torch. The fuse sparkled its
blast furnace, as

high

A flame shot up

inside the furnace

as a

a

way

fuse with
into

a

a

than two years ago.

twenty-three-story building.
—

and

a

great

new

This increase
the

average

Pa., is the largest fully integrated steel mill

will

one

time. Construction

was

ever

to

started less

in

production is further evidence of

determination

began to operate. The Fairless Works, at Morrisville,
be built at

never

'

*
•

s>

w

Roach Fairless, lighting the fuse,
Sproul Fairless, granddaughters of >Benjamjnv
Chairman of the Hoard of U. S. Steel, for

whom the plant is named. At

General Superintendent of




the right is Albert*J. Berdis,.
the Fairless Works.

Steel

and

the 276,000

the Company that America

growth

or

for

providing strength to defend the nation's freedom.

'

F. Fairless,

own

S.

lack the steel 'it needs for

w

The little girls are Nancy

of U.

citizens who

-

and Carol

The additional 1,800,000 tons of

huge

28

The Commercial and Financial Chronicle...

(308)

Continued
conclusion

peace
In

that

of

lot

a

to

good life in¬

a

and

sense

promote his

of mind.
all, 1953 looks like a very good year for

insurance

incoming Administration
by these same millions
accomplished to meet the funda¬

the life

unless results

and

mental

underlined

have

For it is something
party loyalty—that of
trademark; the people of

hollow

a

matter of

mere

or

name

made

believe, with inflationary procedures resulting in
a shrunken take-home dollar;
larger gross receipts but less groceries; with the old
business of taking it in at the top of the barrel but losing
it through the sdams.
'
'
It is not entirely fair to charge this situation, as such,
to any administration but rather to a state of mind into
which we, had fallen and from which we have now
a

Co.

higher wage dollar but

Tremendous strides were made in 1952
by the National
Television Systems Committee—a
group representing all
the manufacturers of television
equipment—toward the

with

planning our operations for the coming year, we
fully anticipate an increase in the sales volume of life
insurance, and while we are thinking specifically of 1953,
our optimistic outlook
extends over a longer period.
In

Business forecasts at best

dif¬

are

and in retrospect
many predictions will not stand the
test of scrutiny.
Forecasts represent
the intelligent analysis of the inter¬
play of all the economic factors ex¬
amined in the light of past economic
ficult

to

make,

because of some

distorted

the

least

is

it is

un¬

to

extremely

casting

O.

#

rapidly improved
living, they have fallen far short of
protecting their improved living standards through ade¬
quate life insurance.
This means a huge potential for
life insurance sales, since the public is gradually real¬
izing that if its high standard of living is to have any
degree of permanency, then it must be preserved arid
guaranteed to the family through the purchase of addi¬
insurance.

American

if

family's failure to main¬
protection is easily

level of life insurance

same

examine

we

some

of

facts.

the

Since

the

1940, disposable personal income after
the 1940 dollar has increased 72%,
in force has gone up only 32%.

of

year

p -ev.*ar

have

people

of

extent of the

The

taxes and adjusted to
while

life
the

At

insurance

16% of the nation's
workers are covered by some type of pension plan,
but it is logical to assume that virtually all businesses
present time only about

will follow the trend and make these retirement benefits

available
creased

their

to

use

of

employees. This, together with in¬
"key man" and other forms of business

insurance

provides the life insurance industry with
other great reservoir of sales.

an¬

business should be prosperous in 1953 because
high level of personal income, the public's growing
realization that it is underinsured, and the prospective
growth in the pension and business insurance fields.
Still another factor is the prospect of improvement in
So

our

of the

the soundness of the dollar, which will remove a favorite
consumer
reason
for postponing the purchase of life
insurance.
On

the

we

The

construction

banner
over

have today

a

far better balance of

government, labor, and business than
we have enjoyed for a long time.
If we can attack our
common
problems with mutual understanding and a
unanimity of purpose, then while we may have some
degree of "disinflation," we can look forward to a
sustained period of prosperity.

in

year

H.

million

a

new

homes will

city

construction

the

for

year

another

built

that

are

$33

pacity

in addition

to

year

in¬

With

spend for construc¬

ings

particularly

and

youngsters.
With

a

in

prices in

some

textile

educate
educate

to
to

stimulate

consumer

Concerning
cal

by such

my

products

equipment

and

more

industries

will

we

day point to the
the beginning of the American

marking
This

observation

recent

National

is

not

related

election.
in its

It

to

goes

the

far

1952

year

as

expect that

histori¬

our

pattern

Gypsum is

of the nation's foremost

one

000,000.

of

deeper than

significance and this

same

past

year

more

use

in

year

for the

fmb
*■

•

,$v

V

' a*'

V

\

our

tant

that
ob¬

consider

became

the

that

there

were

the

face
crux

of
of

the

the

campaign.

de¬

was

a

will

work

new

and

be

found

improved

in

the

products

1952

than

in

any

previbus

12

Communications

is

stream of industrial
1952

was

citing

the

new

year

the

blood

life in America.

in which the

system

of

ex¬

microwave

communications really stepped from
the
engineering stage into

reality.

We
William

Balderston

now

know

revolutionize

that

the

microwave will
communications

We
can
become hopeful that our
people, whether voting for one party
or
the other, have at last
realized

systems of the world. It has been
used with success and reliability by utilities, pipe line
companies and railroads. It multiplies almost without
limit the number of messages that can be flashed back

responsibility resting on them, have become con¬
scious of the power of the ballot, and in the exercise of
this power have made certain decisions.

and forth across the country; it insures a reliable system
of communication in times of storm and disaster. Indus¬

Bruce Baird

the




time,

try sales of microwave equipment

opera¬

Division

100

television stations—

new

the

air in 1953. This
market for television sets.

go

new

on

built and sold

were

expect at least 6,500,000 will be manufac¬

is

coming back into its

and

About 7,000 000
believe this will

own.

and sold in

we

1953.

government
of

business

industries.

tinue to
remain

rise

high

for

defense

are

many

is

an

excellent

market

private economists predict a
activity in 1953. We know this

the

National
1953

and

spent

electronics

income,

we

government

and

home

appli¬

expect, will

con¬

expenditures will

already appropriated by Congress
for completed equipment.
There

indications

that

American

investment- in

during 1953.
of

of

as money

its

up

in

to

and

particularly true

ance

forward

...

,

Both

.

look

we

1953.

new

industry plans

plants

and

All these indications point to

a

to

equipment'
year ahead

prosperity for business, industry and the individual.
o

H.

W.

BALGOOYEN

Vice-President, American
.

&

Foreign Power Co. Inc.

The growth which, for the

ized

the

electric

of American &

American

area

Rapid

business

past decade, has character¬
of the
operating subsidiaries

Foreign Power Company Inc. in the Latin
continued, at an accelerated pace, during
industrial

expansion,

were about

growth,
rising
living
standards, and the high level of busi¬
ness
activity combined to feed the
apparent insatiable demand for elec¬
tric power.
In most

$25,000,000

i
of

the

areas

served

by
subsidiaries, inten¬
inflationary pressures compli¬

Foreign Power's
sified

cated the

lic

operating problems of pub¬
utility management. As a "price'

fixed"

business, the electric power
industry has had to cope with soar¬
ing price levels, mounting expendi¬
tures

for

wages

and

related

social

benefits, and
burden

months.

no

that

their

in

appar¬

record

It

ticularly true of the electronics in¬
dustry, which made greater strides

outpouring of
citizens in exercise of the impor¬
privilege granted a free people

on

products

which will be available to the public
1953 and thereafter.
This is par¬

an

clearly defined major issues

the

in

voting and by their vote deter¬
mining _who shall govern.
This is the more impressive when

ent

which industry has
of

laboratories.

research

many

of

we

in

one

before

ever

researchers, the engineers, and de¬
of

completely reversed. It is the heart¬
ening fact that never in our history

|

same

Industrial

population

signers and the technicians. The fruit

the

servation would have been pertinent
of the election been

fyWfr'
/ii, jt

has been
than

industrial

had the results

has there been such

the

and

1953.

months

1952.

BALDERSTON

WILLIAM

Renaissance.

outcome

that

UHF—will

450,000 will be made

sup¬

pliers of building materials. Starting in 1925 with one
plant, one product, and a small handful of dealers, the
company has grown to one with 35 plants, over 150
products, 21,000 dealers arid annual sales of about $100,-

great

At

National

'52 by a

made

1953.

Government

were

step

buying and increase volume.

company,

of

produces,

The inventory situation with
respect to refrigeration
equipment is vastly better than it was a
year ago. There
has been a large increase in
refrigeration sales in recent

large

a

will continue, even accelerate, in
Gypsum's sales in 1953 will top those of
comfortable margin.

growth

1953.

household

it

sold out of air conditioners
and it looks as though
installations in 1953 will be at an
all-time record. About
325,000 units were sold in 1952 and we estimate about

our

industries similar to that completed in

and

items

record

share

were

H. Baker

Melvin

effort put into selling and distribution. An adjustment of
the

major

its

Perhaps the fastest-growing market in the
country is
room air conditioners.
Throughout 1952 dealers

selected

better

the

increased

receivers, radios, refrigerators, home
air conditioning units, and
expects

tremendous

We

is

and

has

8,000,000 in 1953.

in

new

$350,000,000—a

6,000,000 television receivers

high level

into

by the

that for

Tax, to encourage the flow of private capital into
growth necessary to supply a
growing population. There is a need for lower costs,
research

of

gains in

and

a

industry for long range
fast

each

probable

VHP

Profits

more

exceeded

manufactured in 1952 and
increased to about

be

reduction in taxes, particularly the Excess

a

seems

Radio

agement to capital.

hope for

1952

Philco's

1952.

sets

popular vote, there should be greater unity in all seg¬
ments of our nation and a better atmosphere of encour¬

veloped
some

of

been

tured in

schools

Administration

envisioned

ranges and

tions

in

;

new

for

sales

have

About

in all public build¬

expansion

in

television

promises

rials, building recently deferred by
restrictions will go ahead.
I see a
vast

service

new

corporation., Philco

as

It

few, if any, shortages in basic mate¬

The

President, National Savings and Trust Company,
Washington, D. C.

market

both

which
high level of
in American industry.
controls coupled with

fewer

by

group

substantially increased during 1952 and the
backlog of orders for defense equipment from the three
services is now over
$160,000,000.

the present

emplbyment

I

the

further

for the building industry.
requirements will

assure

sales

the

little higher than in 1952,

a

will

a

record year for the

a

for

freezers,

1953 defense

In
be

was

predict

such

during 1952. Authorities predict
1953
expenditures will reach
billion—indicating another ca¬

that

made

—

appliances.

President, Philco Corporation

may

perfect the dramatic

Philco

Preliminary studies estimate that
tion

receiving.

been

manufacturers of tele¬
vision receivers and most household

dustry.

$321/2 billion

now

are

has

Systems Committee

engineers for color television.

indications

be

Television

they

one

television

to

BRUCE BAIRD

Historians

National

color

it will not be

experience

The present

1953.

in

control.

BAKER

industry should

better than, the

or

progress

representing all the manufacturers of television equip¬
ment in the country—who have
put forth every effort

high level activity in industrial and commercial build¬
ing.
This forecasts another capa¬

National

•

whole,

between

power

the

people have had a big rise in their

American

the

tain the

and

as,

This

President, National Gypsum Company

standard

visualized

good

a

a

MELVIN

Kelley Anderson

dustry.

life

introduced in such a manner that it will not
interfere'
with black-and-white television. Owners
of present sets
will be able to receive
black-and-white pictures trans¬
mitted over the color
system, and the picture will be as

I

living, they have clearly demonstrated a
driving desire to continue its improvement beyond the
expectations of any economists. Ours has become an
economy which stiesses the idea of production and con¬
sumption wherein we are rushing to provide all kinds
of goods and services to everybody.
Because of the consumer's willingness to continue to
improve his living standards, business should be gen¬
erally prosperous, and with this prosperity we should
have a continuation of the high level of disposable in¬
come.
To us this continued high level of disposable
income means another good year for the insurance in¬

tional

not develop

down the road of artificial regulation and

of

While

does

the correct solution

they will find

economic fore¬
difficult, if not

While the American

their

ready for the production lines, color television will be

tax burden that destroys ini¬
tiative, crushes the taxpayer and weakens perceptibly
the free enterprise system, the people have declared

unreliable.

standard

Administration

incoming

plan for solvency without

of these
psychology of the

makes

pattern

a

the

we do nots believe color,* television can
go
the market for some years to come. And when
it is

on

heartening to witness this great march to the polls,

If

His reluctance to conform

consumer.

•

been

for in the voice of the multitude there is wisdom.

important

the

r

has earlier

right of franchise; This they; have done and we hope will
continue to do in all ..subsequent elections/ Certainly

Vision.
Not

a fully compatible color television
sys¬
tem, which can eventually be presented to the Federal
Communications Commission for review.

remarked, the government must
be the servant, not the master, of the people and it rests
upon the voters to bring this about by exercising the

predictable political or psychological
factor which disorganizes our pre-'
dictions and forces their drastic re-

variables

development of

However,

emerged. 1 // i

However, they often be¬

experience.
come

.

As

while not yet perfected to the point where
substituted for tubes in electronics, are

be

can

emerging from the laboratory, and limited use may be
of them in industrial
equipment during 1953—
certainly in 1954.

country demand results; they are through, we ven¬

ture to

President, New England Mutual Life Insurance

imagination.

they

the

into the

runs

sistors

Transistors

beyond

now

In 1952, we discovered that the
possible uses for tran¬
in electronic equipment stretch the

the

present victory will be short-lived.

our

O. KELLEY ANDERSON

ballots

the

lar

itself is but

industry.

are

which

issues

and the backlog of orders

year

hundreds of millions.

will be watched with critical eye

transfer of profits

a

policy make

surance

last

Let it be understood that the

from page 26

Thursday, January 22, 1953

latory

an increasingly heavy
taxation; and local regu¬
bodies, in many
instances,*

of

have been slow in approving applica¬
tions for
compensating adjustments
The

nature

of

the

electric

power

H.

in

W.

Balgooyen

service

business,

rates.

and

the
undertaken by our subsidiaries under their
concession contracts, impose definite responsibilities
for
rendering adequate service, assuming that the Govern¬

obligations

mental
their
Some

Authorities concerned are equally
responsive to
obligations to provide remunerative service rates.
of the-countries in which

our

subsidiaries operate

have

recognized and accepted these responsibilities and
it is in these countries where the major
expansion of the
facilities

of

areas, rate

our

subsidiaries

is

taking place.

In

other

increases recently obtained have been inade-

Continued

on

page

3(Jj

Volume 177

Number 5188... The Commercial and
Financial Chronicle




(309 )

.r

..
■
,
.

.

..

.

This is

ballot box,

a

believe it
There

are

few

celebrations

are

companies 100

news.

years

old. Centennial

Their survival in business is

into

no

competency of

a company

is passed

character and place their
stamp of approval upon it.
„

The market place is
consumer

nothing at all.

a

symbol of economic freedom—

is free

to

choose this

or

of

that,

the

political leader unduly restricts the freedom

placb,

or

the businessman unduly

endanger

Political freedom and economic freedom

They thrive

or

our

national

are

Siamese

suffer together. If they work to¬

freedom of choice makes the lowliest citizen

sovereign. He

ITS LIFE IS LONG.
VOTE IT SO!

a

substitute any form of Government for
the American system. He can throw the
biggest company
can

CITIES

of Cities Service

soil of American endeavor.

companies are deep in the
They extend back four gener¬

ations. They weathered the
early vicissitudes of all small
businesses. They survived wars and
depressions, and
grew

strong because they

sunshine of

business

were

nurtured by the water and

quality and service.

eighty
near

years a Cities Service company still does
the site of Drake's first oil well in
Titusville,

Pennsylvania, and another

company produces and sells
in the Fredonia, New York area where it was

discovered in 1821.

in¬

gether, each respecting the other, America will continue
to show its tail-lights to the rest of the
world.
This

roots

natural gas

market

-

.

or

well-being.
twins.

The

After

fluences political processes, both

..

ONLY IF CUSTOMERS

•

,

The polling booth is the symbol of
political freedom—
another kind of customer choice.
When the

gospel:

A BUSINESS IS BIG

by customer- '
by hour, day by day. Customers register their
opinion of a firm's policies and practices, its integrity, its 1
service, its progressiveness. They ultimately recognize

where the

as

upon

voters hour

,

bankruptcy overnight by voting for its competitor.

Set this down

happenstance. The daily record of failures makes any
business undertaking
"difficult, human and worthwhile."
Successful management is elected
by the people. The

not!

or

In 1952, customers voted Cities Service
another span of
life

through their purchase of $900,000,000 worth of
products and services—$500 million more than in 1945—
in

a

free and competitive market
place.

Twenty-odd thousand employees and 18,000 dealers of
Cities Service are deeply aware of the source of their wellbeing and the long life of their company. They will strive
to continue to merit the confidence of

men

and

women

in

country where economic freedom and political freedom
are blood-brothers.
a

SERVICE

Quality Petroleum Products

29

The Commercial and Financial Chronicle
SO

22, 1953

Thursday, January

...

(310)

Continued

quate and efforts are being
sary

made to obtain further neces¬

of the electric in¬
the constantly increas¬
serious financial prob¬
lem to the privately-owned utility companies operating
in that area, particularly in view of the undeveloped
condition of the local capital markets and the general
reluctance of private investors in the United States to
increase their foreign commitments. Our estimates indi¬
cate that the upward trend of demand, resulting, as it
does, from the continuing economic progress of the Latin
American area served, is likely to persist, regardless of
any possible reduction of defense spending by the United
States or other exlernal factors.
Capital expenditures
by the Foreign Power System, alone, have amounted to
more than $200,000,000
since the war, with expenditures
for 1952 reaching $35,000,000. Tentative estimates indi¬
cate that necessary expansion of plant and equipment
•will require capital expenditures of at least $50,000,000
annually for some years td come.,: This,-of course,-isbased
on load growth1 studies and indicated future demand, bdt
need for expansion

dustry in Latin America to meet
ing demand for power presents a

whether

actually

expansion

this

not

or

of

prosperity due to the existence oL
defense industries such as aircraft and allied material,
ure

adjustments.

The continuing

must

occurs

rearmament

service pose

quite

it

and

is

capital

belief that

my

vious year.

While the economy and
serve

the direct effects of both

world conditions,

it is my belief that 1953

will

and

1952

exceed

Island.

I

the

in

concerned

am

remittances

dollar

is required

service dollar investments and pay for

to

United

how the
taxes

Administration

new

be

can

If

the Foreign Power System, substan¬
improvement occurred in foreign exchange condi¬
tions in Colombia, Costa Rica, and Ecuador, while the
countries served by

high

foreign exchange situation in Venezuela continued to be
consistently good. On the other hand, there was a seri¬
ous shortage of dollar exchange in Argentina and Brazil,
although at the year-end, there were indications that
.some improvement could be anticipated during the early
.months of 1953.
In such "hard currency" countries as

throughout the

not

be

1

year.

no

way

record and by recent trends, so far as we are

terpret them—which
will

continue

to

be

that

means

our

in

concentrated

able to in¬

major investments
those

areas

where

the subsidiaries have received the best treatment at the

hands of the local
maintain

to

authorities; where it has been possible

service rates

on

a

remunerative

basis;

and

where there exists the best continuing prospect for satis¬
faction of the subsidiaries' dollar exchange requirements.

a

I made

ago

year

would surmount the

tions

and

-shortages of materials.
Growth figures for the past year in
nil categories — population, homes,
factories, utility services — confirm
that prediction. Moreover, the pres¬
ent outlook leads

will

1953

tinuing

this

see

at

me

through

expansion

to

provide

adequate

modern

Long Island require.
cipating
the

in

expect

If

to

balanced

and diversified demand for

our serv¬

We are

♦Island

is

the

kw.

100,000

electric

kw.

this confidence

we

Hempstead and by
ber's

If

be

could

election

on

which
went
an

wg
And

two

to

placed
as

the

a

additional

addition

100,-

to

operation

in

aK

the

last

further expression of

people

of the

Town of

overwhelming vote in last Novem¬

secured

premission

to

power

buy

town-owned

on which to erect a still larger
station, the initial unit of which will be of 160,-

kw.

capacity.

eration at
There is
from the

This plant is scheduled to begin

op¬

the end of 1955.
a

Administration

urban

metropolitan

brought

standard

brought to

an

areas

to Nassau

and

Counties; we are closely associated with this
trend< and our studies indicate even more industrial ac¬
tivity in 1953 than last year. It is evident that both the

management of the industries and the workers appreci¬
ate the opportunity to work under less tension with
more time to enjoy life in the
While




it

is

can.

movement

get the

that has

the States, we
prosperity.

over

power

return

a new peak of
1952, and may well
1953.
Construction
position, behind defense, as the nation's

$42 billion in volume during
exceed this figure by $1 billion in
over

is

now

in second
-

leading industry.
A significant development in
home
building industry is its

-

pendence

degree than on family

of living.

The-

M.

is

doubt

no

what

but

;

/

.

whittling

away

never

look to

a

BEEBEE

figures .from 1940 to 1950 which indi¬
cate that while 30,000 more persons

.

prospects

for

1953

moved

-out

moved

in,

of

an

York

New

City than

estimated 5r0,000 more

persons moved into
moved out.
During

the suburbs than
that decade, the

metropolitan areas of
the U. S. increased by 15,200,000 per¬
J 68

Harold R. Berlin

sons

standard
but

only

6,000,000

of

the

in¬

proper.The remaining 9,200,000
increase was in the suburban areas^V-/-."
-* "
Side by side with this tremendous suburban migration
we continue to have a vast regional migration.
Of the
19.000.000 population increase during the census years,
5.700,000 occurred in the west and 5,500,000 in the south.
The government decision to "stretch out" defense ex¬
penditures and reduce them from the original estimate
of $72 to $74 billion for 1952 to $60 billion took a lot
of pressure off the construction industry- a»d enabled
was

crease

in the cities

.

1952 volume.
to follow

it to reach its huge
Had

defense

decided

the

original

plan

of

opinion, from the point of view of the power
industry, one of the most important
issues
is
whether
the
public will

speeding defense expenditures to the $72 to $74 billion1'
level by the end of 1952, entire classes of the construc¬
tion industry would have found it exceedingly difficult

continue

to

In

my

to

respond to

the

growing

avoid

taxes

cheap really
We

and
are

thereby

If

appear

not cheap.

believe that the

is

a

fine

when

on

York

crease

(1)

financial

plight
happens

example of what

,forms of enterprise
tax-avoiding basis. " If
these principles continue to be un¬
derstood
by the American public,
on

made

in

true

tinue to grow and prosper

the

real

progress

direction of

can

sound

optimistic estimate of a

for the industry in

$1

is

billion in¬

in

1952

1953 would have to be revised

can

be

divided

into four

huge

New Residential:
Expenditures totaled
figure which is likely to be equaled
year.
About 1,100,000 new homes were started in
It may be 1 000,000 or somewhat more in 1953.
Private

about $11 billion, a
next

1952.

a

feel

the

segments:

various

operate

Korean

Construction

the backs of others.

City's

of critical.materials, intense

tighter governmental, controls.
War or the- Cold War in general

considerably.

by

should

New

the

stepped-up

people bene¬
development programs
pay the cost of the benefit
and carry their fair share of taxes

fited

operate because of lack

labor shortage, and

understanding that enterprises which

surrounding self-suffi¬
Island

the

mass,

suburbs

The question is—Will they continue?

favorable.

formation for

dynamic impulses.
exodus from cities to
is indicated by the census

most

its

migration"

.

y

been

"internal

on

the
de¬

mobility of people to a greater

and

government out of

can

Corporation

construction industry established

end the chances

sound

to

I

Long

„

Rj BERLIN

Vice-President, Johns-Manville
The

of

then

that

increased.

be

"

the Russian Communists
' ;

,

wave

a

the

on

There

move

Suffolk

communities.

will

HAROLD

unnecessary

many

and not ride

gratifying trend of light industry to

more

budgets

basic

a

Chinese, will fall out if let alone.

the

appear
we

property at Island Park

cient

is

War

ALEXANDER

Barrett-

many

research

sav¬

President, Rochester Gas and Electric Corporation

generating stations in

unit

November at Glenwood.

000

This

control.

toward improving the

Korean

and the

real

experiencing this healthy growth that

ready have started construction
000

birth

nations

tion of

F.

for

not "enjoyed

has

constitutional rights.
Unless we can stop' the en¬
croachment of the Federal Government and its usurpa¬

Edward

months

and friends in other companies I detect a

Our country could better teach these brown and

attacks

confident that Long

so

gloomy

1952, but among my associates in

company

develop their resources

to

operations,

Beyond this fun¬

achieve

rather

some

were

the
note
of
quiet, conservative optimism.
Indications are that
construction programs'will continue at a high level in
1953 and it is my impression that many advertising and

con¬

tremendous improvement among the

a

of

a

ices.

efficient

that the illy-suited partners,

are

actively parti¬
planned' expansion

the

Island

There

industries during

three decisioii in the steel
relief to the citizens of, the
country, but it has in reality only provided a few years
during which time we can perhaps inflict some flank

service

gas

of the removal of the

possibility

the

Profits Tax,

The Supreme Court's six to

con¬

communities

is

dividends

for

nothing with the civilized groups, why should

damental duty, we are
of

how

countries

more

scarcely

case

accelerated

and

in other

Another factor which would increase

Excess

of.the give-away program.

greatly benefited.

duty of our company
the dependable jtind

electric

the

that

•'

companies for use
uses to improve their business position.
profits available

these

or

our

The imposed

equity is being in¬
the cash available
either in further expansion

corporate taxes while stockholders'
creased.
Second, they will expand
to

experience ratio. ' In the 'thirties, boatloads of
Europeans from civilized countries came here to learn
our secret of creating wealth and improving the standard
of living.
We told them. The same people came again
in
the
'forties.
We told them.
If
this accomplished

•1

amortization programs, however, will
influences. First, they will reduce

favorable

two

activities that it has engaged in
during the last 20 years,- the climate in America will be

pace.

i3

have

good

the

to believe that

somewhat

a

other

of

zens

forward-step

hampering effects of credit restric¬

inflated taxes.

earnings

on

companies.

The accelerated

are

the.

Another

months at least.

four

first

influence

idea planted by the Russians to help us
self-bankruotcy. Point IV, which is teaching citi¬

into

the prediction that the level

of growth for both Long Island and our company would
continue during 1952—that the ingenuity of our builders

the

for

as

another

but

black

Just

many

thinking. about /Point IV. Earl Browder,
well-known Communist, was the author of Point IV in
his book which might lead us to-consider that this was

ages?

EDWARD Ft BARRETT

reduced,

Every busi¬
goods are too

reason

no

see

profits in 1953, while they
comparison with past years, will
increased sales would indicate, but

available for divi¬
dends will be the accelerated amortization programs of
unfavorable

also

am

we

President, Long Island Lighting Company

can

tinuation
I

for business management
to predict the course of economic and political develop¬
ments in any foieign country over the long term. Under
the circumstances, emphasis in our long-range planning
for property expansion must be guided by the historical
Obviously, there is

I

has been ex¬
possibly all

industry

the

for

probably

^

.

John T. Beatty;

Beitzel

companies face heavy tax bills in the first six
of the year and some control of their prices,

Most

Library of Congress last year
printed reports covering theecon-'
omy-of the European countries, indi¬
cating that they were. 150%-200%
better off than in
1939; therefore,

the only countries where
made
on
a
regular basis

B.

descending defense program.

that

much

as

months

his

taxes

George

be slightly higher than in 1952.

may

The

were

rise

not

reduced, we
will have..the equivalent of a pay
increase.
So
a
double" advantage
will result.
•
/"

Cuba, Guatemala, Panama, and Mexico, there was no re¬

could

because of

to

seem

be satisfactory in

will

If

lower.

be

knows

individual

If

mittance problem; and in Chile, conditions at the yearend were better than during the first part of 1952.
Ar¬
remittances

will

nessman

some

dominant factor, and

a

a

believe

I

upon

safely through

more

taxes ' are

corporate

prices

tial

far

U3

transition period.

e

this is

months

six

least

at

While

the slack of

lot will depend

and Congress perform.

ccu'.d lead

for

that.

panding and may be able to take up part or

instead of artificial foundation which

t

level

sight of the fact that our general economy

same time balancing the
this calendar year, our proscan* iuiu
support on a sound

r

imported materials

equipment not available locally. Mixed trends were
evident in the foreign exchange situation of the various
Latin American countries during the past year. Of the

the

that

predict that its cessation could cause
a
recession, I feel that they lose

reduced, at the

budget, sometime during

pro¬

but present indications are
program
wilt continue at

year

that

think

Specialties Company
a

spending

defense

the

continua¬

Many point out that this will
during the latter part of

after

JOHN T. BEATTY
President,

and

gentina, Brazil, and Chile

the

\'

projects at no cost to the taxpayers.

the

this

in

off

level

in Congress; I am hopeful that our representatives
Washington will be alert, to the perils of these pro¬
posed inroads into private enterprise and will encourage
the business-managed companies to build any necessary

change

a

situation and

war

of

gram.

in

Regarding the outlook for 1953,

States

United

tion

growth and expansion of Long
as
many others are with the

ing

investments.

the

to

Korean

affect

can

notably,

outlook,

implications of various public power proposals now pend¬

power

factors

Several

prosperity of the territory we

cannot be divorced from

national

and then declin¬

slightly for the last six months
still keeping ahead of the pre¬

but

will continue to attract the

we

will require.

we

viewpoint of a

the first six months,

ing

curities issued during 1952 were well

the ability ol our subsidiaries to maintain remuner¬
ative rate structures and obtain sufficient exchange to

in the countries served
are of vital importance to the utility companies compris¬
ing the Foreign Power System since a steady flow of

gas

financial problem.-All of our se¬
received,-however,

a

the

From

attractiveness.

Of course, the increased demands for electric and

upon

Foreign exchange conditions

general chemical manufac¬
turer like ourselves, who serves virtually every kincl 01
industry, it appears that sales during 1953 will be some¬
what ahead of 1952, showing greatest strength by con¬
tinuing the present upswing from the
low point late last summer through

majority of new industries located on the Island
are engagec.
in manufacturing of a general type, prin¬
cipally of a light precision nature. The new plants are
of esthetic design
and blend well with the Island's
suburban

Manufacturing Co.,

President, Pennsylvania Salt

the

depend upon the ability of Foreign Power to finance the
expenditures involved; and this, in turn, will depend

service existing and new

GEORGE B. BEITZEL

along with other parts of the nation is enjoying a meas¬

from page 28

(2)
Alexander M. Beebee

Private Non-Residential: Expenditures were about

$10.7 billion and may be roughly th2 same in 1953.
industrial will decline while commercial will rise.

But

be
economy

that

can

for the benefit of all.

con¬

(3)

Public:

Total

governmental construction of all
Continued on page 32

Volume 177

Number 5188

Last
in

The Commercial and Financial Chronicle

a

Michigan and Northern Ohio

Pure Oil

marketing subsidiary. This

territory embodies
lies

(311)

August, properties of the Hickock Oil Corporation

Eastern

with

.,,

were

merged

new

Pure Oil

highly industrialized

a

area

Merger with Hickock Oil Corporation
adds to Pure Oil's existing

which

immediately adjacent to long-established Pure Oil

marketing

system:

marketing territory and to three Pure Oil refineries.
—-well established distribution in northern

Since fall, we've been

busy at the task of taking down

Ohio and eastern
if

all

"Hi-Speed" brand identification at former Hickock

Michigan

—68 additional bulk

units, and putting

up

blue and white PURE signs.

"Signs of the times,"

you

might call them/ For this

ex¬

plants

—1,633 additional retail outlets (bringing
Pure Oil total outlets to

pansion

move

is indicative of what's going

all branches of the Pure Oil

Pure Oil is

on




Company

front.

more

than

—754 additional

—a

net sales

employees

potential in

Producer -

excess

of $43 million

Refiner-Transporter - Marketer

General offices:
35 East Wacker Drive

Chicago 1, Illinois

,

15,000)

throughout

Company's operations.

the move—onvevery

The Pure Oil

on

,

■

'j\1

Be

sure

with'Pure

31

32

The Commercial and Financial Chronicle

(312)

that

Continued
kinds

from

Will probably be

year.

maintenance, and re¬
pair construction amounted to about $10 billion in 1952.
Modernization, remodeling,

(4)

Should be
Public

more

even

1953.

in

will be

construction

larger in L53 than

even

However, public
construction will
at least $1.75 billion as the

in 1952, perhaps $11.5 billion or more.
housing will be smaller. Educational
continue

to

reaching
grade and high school makes new

rise,

flood of children into

larger schools imperative.

and

Highway construction which reached a record
1952 will undoubtedly attain or exceed

of $2.7
$3 bil¬

billion in

the roads and

The reasons are congestion on

lion in 1953.

and the population

highways, terrific backlog of work,

growth of over 2,000,000 persons annually.
Heavy backlogs also still exist in construction
sewers,
water and gas mains, and utility services
War II.

since World
1953

demand

the

as

municipalities and residences continues enormous.
Farm construction which reached the huge volume of
billion

$1.7

in

will,

1952,

decline somewhat

however,

1952, and that competitive conditions will
pronounced.

more

This

be true and may be accepted at face
value, but recent market history records there is little
or no connection between the trend of business activity
and

all

may

investor sentiment which is

would

we

vasion?

mobilize all

One

Under

is just as

the

our

to defeat

resources

serious

the other."

as

certainly,

advent

of

Administration

an

which,

rightly

atomic-energy

$3

billion in the

hardly be overemphasized.

construction

in

particularly

1953,

totaled

1952

close

to

Vast outlays are planned for

United States.

continental

atomic-power, and

in

should be at

least S3.3 billion.

Suspension of Regulation X by the government on
16 did not affect the 1952 picture to any great
extent but it should definitely help in 1953. The lifting
of this control freed not only home building but com¬
mercial construction.
The restrictions which Regula¬
Sept.

with other controls,
office, warehouse,
restaurant, and garage construction by fully one-quarter
from the 1951 level. Unhampered by controls and mate¬
rial shortages this segment may well be 35% greater
in 1953 than in the preceding year.
But the demise of Regulation X does not mean the
end of problems for the construction industry.
Money
worries will remain acute in 1953. High building costs,
tight mortgage money, and the slow sales of existing
homes in many communities are expected to be key
problems. Houses older than five or 10 years are becom¬
ing increasingly difficult to sell.
tion

had

X

together

imposed,

the

reduced

of

volume

1952

store,

light, natural
fit from

As

consumers

struction
Labor

pools

suburbs

that

apparent

the

cities, commercial con¬
stores open branches.

Department
created

are

avail

to

of

out

move

follows.

construction

of

itself

the

and

of

the

future

industry
supply.

into

moves

of

In

far

so

ings

the financial

as

should

should

be

probable that the general level of stock prices
sometime during 1953 will be at least 5% to 10% lower
than at present but it is equally

point for the

year

probable that the high

has not been witnessed

as

yet.

Such

an

benefit

select

the

higher

"order

real

intrinsically

than

takers"

in

but

unlimited

is

of

a

concerned

with

undervalued

securities, of

effort.

Another

equally great opportunity in

lies

the

in

that

the

coordination

Nineteen

to

specific situation based

upon

of

field

our

forces

so

is

hardly

either the stock

the

market

year
or

in

the

which

to

investment

security business!

notable milestone in the

of

by

stability of

forecasters

but

would

of

montlis

Y.

Billard

has

buying

been

on

an

during the upsurge of recent
outright cash basis by institu¬

faced with profit

taking that might well lop off one-third

of the advance since last fall.

will carry special

weight marketwise

lapse of price controls.
stock

splits

dividend

seem

Moreover,

the

as

likely to become

Later on, tax news
will the expected

as

year progresses,

more

numerous

and

payments in

many instances more liberal
In
capitalization of 1953 earnings and
dividend prospects, it is obvious that more liberal
yard¬
sticks by which values are measured could
come in due

view of the subnormal

course

from

the

gradual improvement

in

investor

con¬

fidence.
Business

economists

will continue in
year;

that

that

Year

operating

gross

was

the

over-all

forecast

that

industrial

activity
high gear throughout the forepart of the

pace

will

business

slacken

volume




will

and

of

one

revenues,

customers

of

in

the

future

of

as

the

year

unfolds;

be somewhat below

prosperous

these

objectives

The

nation

economy*

be sore if and when
are

has

accomplished.

great faith

in the

unprecedented high caliber and proven ability of
men
chosen to Cabinet rank.
Many of the men in
"under" and "assistant" secretary roles, are of equal

almost
the

the

secretaries.
string" team of the nation.
win the game with the cooperation

stature to the

It is the "first

If this team can't

the

of

experienced and capable leadership in
then we just can't win at all.
this great nation has man¬

highly

both the Senate and House,

with

President, Bank of St. Louis, Mo.

There

shortage of housing, both public and private,
which will insure a busy year in the construction busi¬
a

of adequate highways to
increasing

There is also a shortage

tne

is

ever

vehicles. The
toll roads and

be

to

the

pass

our

around the world

pro¬

fense

year

was

the sixth

more

james

b.

bi<tcK

'

;

effort will

now

On

January 1, 1953, the estimated total resident
population of the 46 counties served by the company
was
5,507,000, approximately 500,000 over
the 1950

figure.
annual

basis

passed the $300 million mark for the first time in 1952.
It is interesting to note that the $100 million mark was
after the system's

October, 1937, 85 years and two months
founding. The $200 million mark was

reached 11

later, in October, 1948.

The $300 mil¬
lion mark was reached only three years and 10 months
later, in August, 1952, coincident with the celebration
of the System's One Hundredth Birthday.
years

of

electric peak load record was established in
and amounted to 3,074,900 kilowatts, an increase
about 6% over the previous record peak established

in

1951.

new

1952,

A

similar record

livery of gas, with
Electric

a

was

made for

one

day's de¬

sendout of 1,078 million cubic feet.

generating units with an installed capacity
of 264,000 kilowatts were placed in operation during the

Blumeyer

ammunition,
placed on order, will be de¬

being planned for and

1953, but also in 1954 and 1955. Even
end to the Korean war would not mean an

sudden

place and

in-migration from other

Arthur

livered not only in

both to natural increase and to

an

especially in hard

goods, is being "stretched out," with
the result that end items such
as

end

not reached until

de¬

defense

contributing to this result has been the continu¬
ing growth of population in our field of operations, due

on

that the

continue to require

tarks, planes, guns and

successive year in which we
customers. The principal

revenues

does not seem im¬

means

curement program,
ex¬

than 100,000

operating

Communistic threat

$40 billion annually to sus¬
forces and to provide
materials for our Allies.
The pro¬

tain

factor

gross

substantial

close to

one-'billion

*

which

minent,

very
,

.

The end of the

early in 1953. About
expended in 1952,
expect that at least this amount will be

have added

for

payrolls.

was

«

responsible

and

continued

construction

our

new

highways
alone will absorb
tremendous amounts of materials and

served.

the

of

construction

mark

we

will be a good business year.

I believe that 1953

is still

state

This program, the largest ever
by .any similari-utility,

expected

A

and

number of automotive

Centennial

Our

sound

a

Boles

accommodate

census

securing

and

necessary,
is easy.
however
represent the only basis for

Some toes may
T.

bwing

ness.

The

Korea

ARTHUR BLUMEYER

terprise.

areas.

the

tional and private investors but it must not be
overlooked
that a fair amount has been for
speculative accounts. Be¬
tween now and March 15 it is probable the market
will be
or more

strength

business and

pended in 1953.
Gordon

in

peace

ings,
They

the

and

war

1953.

miracles.

no

is the stated number one
objective of the new Administration.
Next the balanced budget and tax
reduction—none of these undertak¬

en¬

dollar

expect

The
the

of

our

$160 million

also

We

unexpected dis¬

confidently look for good

business through

extraordinary vitality of private

is

we

through some very crucial games
something less than the "first string" on the field.

undertaken

defy the old adage that years with a
happy beginning in the stock market frequently end up
rather unhappily, and vice versa.
In so far as 1953 is
concerned, it can hardly be said that the year is not
starting out under auspicious conditions.
Most

the fundamental

gram.

fairly siz¬
able reaction and subsequently
by a
recovery to a new peak, later in the
year. Such a pattern would confound
not only
the stock-market-minded

people in the Eisen-(
Administration. Barring an

American

the

hower

Company occurred in 1952 with the completion

expansion

a

#

history of Pacific Gas and

Perhaps the best evidence of

and will be followed

business

of

us

faith

just prior to the Presidential election
may be at or near a temporary peak

bright and cheerful.
investment banking industry shares the inspired
confidence of the vast majority of

The

aged to muddle

hundred years of public service to the people of
and Central California.
It served to remind

one

number

grounds for anticipating
that the uptrend that got under
way
are

been

President, Pacific Gas and Electric Company

true value.

There

foggy weather that has blanketed
the economic weather has

much of the nation recently,

It is well to remember that

JAMES B. BLACK

gas,

its

Columbus, Ohio
of America

President, Investment Bankers Association

interests of the investor may be
the mutual advantage of all concerned.

fifty-three

"short"

s^ll

consolidation

and

in¬

be commensurate with

satisfactory in our history,
new
high records having been es¬
tablished for sales of electricity' and

\

EWING T. BOLES
President, The Ohio Company,

legitimate

better served

Our

appraisal

an

cost.

reasonable

op¬

the most

broad nearby trend or to the investor
who

at

and

security merchandizers who

Rewards should

We

keep pace with this growth to the end that
supplied with electric and gas service,

to

it be abundantlv

This

1952.

vestment merit.

all-embracing statement, however, is
of little value to either the speculator
who is primarily interested in the

growth and stability

territory which we are privileged to serve.

the

fraternity is concerned, public

somewhat

portunities arwait the

Electric

is

of 400 million cubic

sources

We have confidence in the future

as electric power and
telephone,,-and railroads should bene¬
16ss labor turmoil and

Northern
It

present contract demand from
feet of gas per

augment the

interest in the security markets seems likely to expand,
albeit rather slowly, so that the volume of listed deal¬

A

Partner, J. R. Williston, Bruce & Co., New York City

gas,

in 1952 were

700 million cubic feet.

uay to

of

prevailed

Steps are well ad¬

sources.

aster,

for many years.

BILLARD

to

out-of-state

insurance
(in the former in¬
stance) and premium increases, with larger balances
(in the latter instance); some oil companies from settle¬
ment of the tidelands dispute; rapidly growing compa¬
nies from elimination of excess profits taxes, and gold
mining companies from the Republican Party's promised
return to sound money with its implied higher price
for gold.

gauged by a mere survey of convential factors such as
family formation. New trends are bringing major changes
the construction industry and will continue to do so

Y.

vanced

out-of-state

from

ooiaineu

companies from firmer money rates

in

G.

were

state, 55% of our total gas requirements

stabilized price level,

a

situation which

the

to

1950, when the company's entire re¬
obtained from producers within the

improved rate-making procedures; bank and

the

It is therefore
construction cannot be

quirements

contrast
year

all out-war or some

The trend of population is toward the suburbs.

classes.

classes

marked

ernment-regulated companies such

indirectly
depend on activity in the home building segment. That
is why the movement of people is so important to all

other

all

In

Unlike the gloomy,

investment equities today
are
undervalued
rather than
overvalued, and conflicting factors will
continue to make for a highly selective market. Gov¬
Many

can

Almost

additional
electric gen¬
erating capacity will exceed 4,500,000 kilowatts, exclu¬
sive of capacity available to us from other producers,
which at present approximates 500,000 kilowatts.

or

wrongly, has been indeblibly ioentifiea in the xmnus of
the investor class as sympathetic to their interests can

1953.

+

plan to complete be

1,273,000 kilowatts of

the close of 1955,

which in turn will give the investor greater confidence
in corporate enterprise.
After two turbulent decades,
the

<

capacity, at which time our total system

intend

Administration there is ample reason

new

busines management to plan with greater

for

in¬

an

s

of World
i

under construction, or

nave

we

prior to the

as

capacity in service at the close

our

War II.

status of

Governmental industrial, military, and

in

doub'ing

fore

depends upon a pros¬
perous United States.
With respect to this, note the
following comment by President Eisenhower last Octo¬
ber; "Never again shall we allow a depression in the
United States.
The Soviet communism is looking for
one great victory.
That victory is the economic collapse
of our country. Why then would a nation such as ours
refuse to mobilize all its resources to defeat a depression

units the comp^^

postwar construction program to date has added 1,688,-i
000 kilowatts of electric generating capacity, more than

establishing the price level.
What, of course, does exert a marked influence upon
investor sentiment is major uncertainty and during re¬
cent years there has been ample of that. From here on
there should be much less uncertainty. From the stand¬
point of business activity it must be recognized that the
the free world economy

22, 1953

Thursday > January

With the completion of these

year.

factor

the determining

in

.

construction will keep going full blast
for electricity from industries,

Electric power
in

7,000,000 new

because of the

general

of
in
home units built

in

seen

become

billion in 1952.

about $10.6

was

larger next

even

30

page

.v.

a

to

the

procurement program which is designed to
keep this country in a

position to meet all

enemies at all times.
It is evident that

the

new

Secretary of the Treasury,

W.
debt on
national
debt matures after 20 years, the structure will undoubt¬
edly be rearranged so that $50 to $75 billion long-term
bonds will replace short-term debt and be placed in the

Mr. George

Humphrey, assisted by the very able Mr.

Randolph Burgess, intends to put our national
a sounder basis.
Whereas none of the present

institutional investors at attrac¬
Public confidence will thus be re¬
Government fiscal policies and sound

hands of individual and

tive rates of interest.

established

in

principles of financing substituted for expediencies. The
higher cost of money will be more than offset by the
restoration of confidence in our dollar and what it will
buy.
In

$27 billion on new
Present indications are that 1953
billion expended for the same
These figures are impressive when it is realContinued on page 34

1952

private

industry spent

plant and equipment.
will

see

purpose.

another

$26

Volume 17T~ Number .5188... The Commercial andFinancial Chronicle'

Dramatic

new

developments in medicine, agriculture,
and

Scientists have

long known that the secret core

the secret
Then

came

ways
1

:

developing methods to

release this unbounded energy

ally, in

-

with the atomic bomb.

the task of

of lasting benefit to all of us.
°

industry promise long-time benefits for

understanding of the

proc-

,

split they emit a barrage of highly
Certain chemicals placed in

production installations at Oak Ridge, Tenn.

All of this activity fits in with the continuing

M»"

•

rials for gcience and indust

for

,

.

transportation, home, and industry.

special materials for the atomic energy program.

UNION

be traced through plants and
they affect. This

Under Government contract Union Carbide
manages and operates the huge research and

30 east 42nd street

When these chemicals are

their

paths

can

off

animals, showing the organs

>
-|--r .

AND
' •'

■

■

UCC's Trade-marked Products

-

Synthetic Organic Chemicals
,




•

Dynel Textile Fibers

•

.

of Alloys, Carbons, Chemicals, Gases, and Plastics

Eveready Flashlights and Batteries •

Electromet

Alloys and Metals

•

National Carbons

Haynes Stellite Alloys

•

•

/"V

!

VvAR BID E

CARBON CORPORATION
ihm new york 17. n. y.
'
' -,'jv
,

include

*

Acheson Electrodes • PYROFAxGas

Prest-O-Lite Acetylene

Bakelite, Krene, and Vinylite Plastics • Linde Oxygen •

.

.

"
and Processes" which tells how science
and industry use the Alloys, Carbons, Chemicals,
£tS£S, « ndPusncsmade by Union Carbide. Ask

made radioactive

barrage become radioactive and shoot

,

■

FREE: Learn more about the interesting things yon
use ever7 day. Write for the illustrated booklet

particles from themselves. Substances thus
treated are called radioactive isotopes.

this

all : |

FUTURE UNLIMITED-Atomic energy is also c, effom of the
, of Union Carbide {0 trans.
Proving useful m industrial research and pro- form ^ elements of ^ earth into usefd ^
providing concentrated power

particles

us

and Paducah, Ky.

.

UNION CARBIDE'S PART-From the beginning UCC has had a hand in the mining and
treatment of uranium ores, the development of
engineering processes, and,the production of

active

33

,

ductl0n> such as analyzing metals and other
I[ Promises ,t0 be even morf valu"
able, however, in

slowly, gradu-

ISOTOPES AN EXAMPLE—When uranium
atoms are

our
of life itself.

esses

Evidence that man had unlocked

came

increase

may

of the atom concealed vast stores of concern

trated energy.

(313)

A

Prestone and Trek Anti-Freezes

—

Financial Chronicle

The Commercial and
54

Thursday, January 22, 1953

...

(314)

vacuum

Continued
fzed that

from

an

page

average

32
spent for

of only $19 billion was

the years 1946 through 1950.
In conclusion I feel that 1953

which

will be a year to

tail

look forward
with confidence.
In General Eisenhower the country
has an executive of proven ability and in his recently
appointed Cabinet he has advisors of proven wisdom
and achievements.
My hope is that the fallacious phi¬
losophy of working less for higher pay will disappear
and that the American people will buckle down to the
task that lies before them by working harder and longer
to produce things better and cheaper. This is what has
made and
will continue to make America grow and
and

businessmen

American

can

women

'

prosper.

ANDERSON BORTHWICK

-

-

-

,

dynamic characteristics of. the West Coast econ¬
reveal no sign of a major downturn in business
activity over the next 12 months, but caution is gener¬
ated by the fact that production, employment, construc¬
tion and sales are at an historic high.
The

opinion is widespread that a
moderate adjustment is not too far

The

,

.

however, it is im¬

this respect,

portant to observe that in the ag¬
gregate, business sentiment seems to
fear speculation during the months
ahead while looking with favor on
sound
it

that

probable

highly

ward cycle.
It

is

pointed

frequently

out

that

expansion over re¬
particularly since the outbreak of the Korean
war, but a more revealing analysis can be obtained by
examining qualitative as well as the quantitative fac¬
tors involved in this equation.
The absence of specula¬
tion on the part of customers and the unwillingness of
frankers generally to make such loans seems to preclude
the probability of a catastrophic "bust" on a scale such

frank loans have undergone a rapid
cent years,

experienced in 1929.
Administration which has expressed
attitude toward private business and free

the nation

as

,

The election of an
a

favorable

to remove certain obstacles in the
road ahead.
It would be extremely dangerous to dis¬
count the inevitable impact of an astronomical; public

enterprise

seems

debt, a multi-billion dollar Federal budget, postwar
expansion of private credit and other abnormal factors
in our economy.
However, the prospect of avoiding a

depression has improved with the prospect of
a more realistic approach to the problems ahead.
The thesis that a future cutback in defense expendi¬
tures will herald the beginning of a depression should
nerious

be
as

rejected.-, This • assumption- had

per

of income,
and other
that bank
deposits, retail sales and other major economic indices
in the San Diego area will rise 5% or more during 1953.

retail

prices will remain relatively firm over the coming 12
months; interest rates may advance fractionally under
conditions of a relatively tight money market; retail

level, perhaps with,
of soft goods
which, since the end of World War II, have accounted
for an historically low ratio of the total. - Conversely,
with the pentup demand for' durables apparently satis¬
fied, high volume during 1953 will be sustained only by
aggressive merchandising in a highly competitive
will

continue at

market.

favorable

a

improvement -in the position

t

,

•

%

,

at least the

appraisal

new

some

much of {he initiative and poyer,

merit

so

long

rested solely with

novernment officials; today, the challenge which faces
American business and industry is to fill whatever

rates

to

civilian

basic

of

12 months.

C.

American

in

BOUSHALL

a

central

gratifying year, particularly in banking.
of high loan ratios that should

tension in
that derives from too
great a demand for borrowing.
The outlook as generally agreed
is equally promising for the major
part of 1953, with a mitigating pros¬
pect of some decline of activity in
.early. 1954. ..This 1954 dark promise^
is based on a tapering-off in arma¬
taper off and reduce the
the

to

consumption

of

prices.

business

has

too

/long

looked

to

Federal

tempo by bureaucrats that

rev¬

greater dependence of the people on

even

control

the

of

a

The

economy.

controller

the

measures,

the

of

sooner we

its

by

economy

sound

own

look to offsetting recession

can

by other than deficit spending foe public projects

eras

with the taxpayer's money today

and the pledge of his

earnings tomorrow.

O.

c.

BOWDEN

President, Sterchi Bros. Stores, Inc.
,

As conditions

of

approaching

1953 has all the prospects

now appear,

a

boom

near

for the home furnish¬

year

ings and appliance industry, although the latter is not
expected to achieve the sharp upturn that is to be looked
for

in

furnishings.

into

go

the

new

to

a

very

Manufacturers of home furnishings
with

year

at

low

record

near

level.

all-time high

an

increase

a

inventories, after

backlog

of

record December,

a

Building

activity

shows

1953 enters with employ¬

so,

and, with

rates

wage

the

on

and

industry generally lengthening its work¬
week, the important question is how far and how long
the upswing will continue and not "will 1953
of the longest period of inflated
of

*

country?"

our

the end

see

prosperity in the history

economy

ment

T.
President,
We

and so well warned,

business

need

not

defeatist attitude as to an
recession.

take

our

The

system
Thomas C. Boushall
.

.

the

industrialists in raising the quality, of their

products, and at the same time lowering the price and

thereby broadening the market.
a

the

basic

citizen

integrity of the
has

been

reaf¬

<

'

realistic, honest, 'and common-sense Adminis¬

rebuilding
on

a

of

economic

ojir

sound basis may arrest

/that type of prosperity \\(hich results
from

.

what made.America

inflation.

However,
it
illusionary prosperity
whatever temporary sacrifices
only

was

and

an

may

haye to be made in the readjustment
are

'■-With

Airways

firmed.

great industrially, and raised our living levels, was
vision of

in

American

greater amount of goods to civilians.

long forgotten that

International

are

dence

inevitable

Rather, it can, by antici¬

too

BRANIFF

faith in the democratic processes has
been
strengthened and our confi¬

.

a

pating such a let-up in government
purchase 6f arms, set out to time
an
extra effort to sell an equal or
have

E.

Braniff

starting the new year
under the great stimulus of confi¬
dence in our own government.
Our

spending in 1954.

So far ahead,

American

We

broader

spending

return to this

a

business leadership reassumes the role of stimu¬

and

lator

government

stimulating

government's

sooner

ment

because

true

was

of

lowering tax

prospect of

a

from

signs of leveling off. Even

Despite excessive taxes that if continued will stultify
initiative and the economic progress of our country, 1952
This

an

with

Government;

spending—rthe time is ripe for

orders and dealers'

President, The Bank of Virginia, Richmond, Va.

proved to be

and

money

stimulus of the business
eled

National

our

of goods,

divert

method

down

THOMAS

of

ready and conditioned to finance the

....

the 1953 business outlook
offers a number of reasons to anticipate that all business
will
be
increasingly competitive;
barring unforeseen
international
developments,
the
sellers' market has
ended. Yet it is difficult to predict a depression, or even
a
serious downward adjustment, in view of the deep
undercurrent of strength which is likely to continue for
realistic

A

consumption

sources

it appears that wholesale and

In the aggregate,

charge

equipped,

better goods at lower

1950)

Nevertheless, projections of basic

the

spite the influence of national trends
which, according to most estimates,
are near the peak of the current up¬
Borthwick

since

employment, construction, capital investment
factors affecting
business activity indicate

growth and development of the Pa¬
cific Coast region will continue de¬

Anderson

to almost 20%

(which has amounted
is anticipated.

expansion

annum

of expansion. Thus,

programs

seems

Market/with more than
who, during 1952, purchased at re¬
than $725 million of goods and services, en¬
in a strong position. A slowdown in the rate
Diego Metropolitan

considerable

omy

off.

of

in

tration
banks

■

customers

1953

ters

certain economic activities.

San

more

.sales

Savings Bank

President, The First National Trust &
of San Diego, Calif.

In

The

700,000

by the withdrawal of govern¬

be created

may

from

ment

necessary

thinking and
I
and

look

to restore

*T. E. Braniff

to sound

us

sane economy. forward to
the' New
a

.

Year

with

confidence

satisfaction.

William S. Baren With
Atwili and
OFFERING

MIAMI
S.

A WIDELY ACCEPTED

Baren

with

CORRESPONDENT

Company,

605

Lincoln

I

n

William

associated

Man¬
the

as

v e s

t o r's

Service

De¬

partment.

Mr.

Baren has

FOR THE OVER-ALL

—

become

and

ager/of

TO NEIGHBOR BANKS

has

Atwili

Road,

SERVICE

Company

BEACH, Fla.

cently

re¬

been:.

'associated

BENEFIT OF

with Baron G.

Helbig &
in

CONNECTICUT

charge

the

C

Gables

BUSINESS and INDUSTRY

In the

Co.

,

of

or a

1

office.

past he
his

Wm. S. Baren

conducted

*

;/,"

/

o w n

invest-

.

-•„/-- -

~ *

£/,'

...

ment business in Florida and New
'

York

John B. Byrne
Chairman
Lester E,

r"
-

- -

1 -'

Leason Adds Two
(Special to The Financial Chronicle)

^

Shippee

President

City." :i~\, <

CHICAGO,
and

-

William

111.—Howard
Smith

S.

> -

-

Atler

are

now

with Leason & Co.,
La Salle Street.'

THE HARTFORD-CONNECTICUT




7601

MAIN

ST., HARTFORD

Member Federal Reserve System
Member Federal Deposit Insurance

Corp.

TRUST Cft

•

Inc., 39 South
*''c - - - '. :

With Blair, Rollins
(Special to The Financial Chronicle)

MILWAUKEE,

Wis.—Harold

H.

Emch, Jr. has become associated
Blair, Rollins & Co., Incor¬
porated. He was previously with
with

Brew Emch Jenkins & Co.

Volume 177

Number 5188

...

The Commercial and, Financial Chronicle

(315)

EMERSON S. BOWERS

HON. JOHN W. BRICKER

Secretary & Treasurer, Atlantic, Gulf & Pacific Co.
their views in your Annual

Some of those who stated

Outlook

Review

and

defense

production

satisfactory

as

other

during

17,

1952,

reasons

1952.

for

Strange

The

mentioned

in

it

we

nation's

the

Despite
and

being

may

Deal Socialism.

members

growing need for har¬
development, it is

posed

economy

defense

curtailed
measure

and

build-up

as

to

will

during the
the Korean

harbor

actual

tion's

30,000-mile

coast

Lakes

included.

While

line,

and

*
s

is probable that

shall

we

unbelieveably

small

the pressure
would

try and commerce, indispensable during both peace or
war; they are a vital part of national strength. America's
strength today owes largely to harbor and channel de¬
velopment done in the past. Greater strength in the

development

from

largely

assure

on

An

of

the

over-

for

Bricker

W.

minute fraction of the.

a

our

industry

"know-how"
The

scope

tors

can con¬

a

Senate
*

struggle with those of Com¬
The high cost of national

«,•

j-

;■

.

"

V

.

;

r

Detroit

est

most

and

Our

of

our

huge

I

write

as

the larg¬

with

area

skilled

out.

metal

working
actually suf¬
labor shortage.

in

the

a

world

that

is

1952

load

growth

the

of

previous
territory is truly

service

P.

M.

Brown

year.

of the growth

one

areas

leaving no stone unturned in
ample supply of electricity for
defense and civilian purposes.
Thus far we have been
successful but -in the process we have had to nearly
double the dollar amount of our plant since the end of
World War II. This forced rapid expansion at inflated
prices presents a problem for 1953 .and the future. The
we

seeing that there is

the' 83rd
On

of the treaty-making power.

share of

our

erty taxes,

are

an

revenues

required for such things

as prop¬

depreciation, interest and dividends

conse¬

quently is based in large part on high cost investments
during the inflationary period. These items alone

made

Nations treaties seek to regulate the economic

'

,

Continued

,

on

page

World's NEWEST Synthetic Fiber to be
*

'

»>• ,r».i

I

jV

in

"

AT THE site of the oldest continuous settle-1

It is the

and

in

Virginia,

founded in

1613,

the

manufacture of the* newest synthetic fiber

has

privilege of the Virginia Electric

Power

electric power to the

recently been completed to Hopewell.

The

Company to supply the vital
Richmond-Petersburg-

supply

of

plentiful,

dependable electric

power

"of the polyanide (nylon) type will soon begin.
-Within the very shadow of a marker to

is

•John Rolfe, English husband of thf beloved

list oi industries, -including fpbacco, chem¬

nearby labor

Pocahontas, the National-Aniline pivision

icals, luggage, optical goods, paper, rayon,

the

cellophane, and

Hope well-Bermuda Hundred

of

Allied

erecting
sketch

Chemical
a

of

new

Dye Corporation

the building

laboratory

is.

and

fiber industry will

alive, iiy J 953, at

Bermuda Hundred which in 1614 became

incorporated town- in

Virginia.

is

a

area,

*

of which Bermuda Hundred

part. Already serving

many

an

others

.

water

...

VEPCO

to the American -standard of

mean so

supplies, excellent rail, highway, air

reasons

on

the lames River between Bermuda Hundred

Here,
good
system

and Richmond "has 250,000 KW capacity.

.

which

new

Allied

110,000 volt tie

..

,.

are

Chemical

ample

some

chose

area

on

of
the

fori its

.

..

'

land hallowed by. the enterprise

evidence-again that

business management is the

From this station,

a

sources

of early Americans,, is

living-

and

plus good

.

tions to be conducted therefrom..

much

VEPCO'S Chesterfield Power Station

.

$23-Million plant and the mammoth opera-1

domestic capacity for production

fibers which

cheap
.

and waterborne transportation, and

impressive

proud to supply power-aplenty to help

increase

of the synthetic

of the proposed.

administration.. facilities.

come

-

pictured..below js.

Thus, the most modern process in the textile

The' -first

Hopewell

synthetic fiber .plant. The

the architect's conception

r*

t

ment

nerve

of America's Industrial domain

spreading from local communities
are

its heart and

core.

BERMUDA'HUNDRED *
ESTABLISHED 1613 BY SIR

Pi<5uA3

DAl£.f!*ir jNCOAPOKA.TED

'

VIUMMA TOWN1614

HOME OF JCIINPOU-E.COI.ONY

RECORDER,WHO MAHWfD
POCAHONTAS.

Rev. ALEXANDER WHITARER
MiMSriKED HERE
EARLY PORT OF RICHMOND

.ERECTED

—

'I

1938

V

BY

INDUSTRIAL

Bermuda hundred CHAPTER




D.A.R.

VIRGINIA

DEVELOPMENT

ELECTRIC

AND

RICHMOND,

be

production

with'

up

.of the nation and

proposed constitutional amendment (S. J. Res. 1).
Joint ^Resolution 1 is designed to prevent any

United

caught

tripled

•-

for itself.

to

defense

My-

borne

soon

Detroit Edison's

treaty or executive agreement from undermining the
sovereignty-and >the Constitution of the United States.

high employment, and have reasonable economic health;

was

this the

fering

Congress is' the

budget,

fjie defense author¬

materials

raw

of freedom will be locked in

Jan. 7, .1953; I introduced for myself and 61 other Sena-

more to added national strength,'help maintain

proposals on the
taxes. In my outlook

fabricating capacity and

domestic

come.

months

expected

key

be almost of boom proportions."

force

to

three

or

be

dicted—"the last half of 1952 should

policy is weakened
by the nation's foreign policy commitments. The forces

..

tribute

its

two

can

finally

years

America

Detroit

Government economy, therefore, can solve a great
pressing problems which cannot be effectively

,

ognition that its value deserves,

another

ships.

•:) One of the most vital issues to be decided by

channel development gets the rec¬

with

be

that

^

When harbor and

will

Administration

not long ignore our area

for

that

a
year ago I commented
-the current unemployment in the
area.
At that
time I pre¬

on

handled in piecemeal fashion.

an¬

it

ities could

security will prevent Congress from establishing what
would be regarded in less trpubled times as a ideal
pattern of Federal taxation, spending, and regulation.
However/ the 83rd Congress should cut foreign aid to
the extent necessary to prevent national bankruptcy and
economic regimentation.
1

budget.

mean

thereby stimulating the productive energies of
American industry and labor.
A balanced budget, by
making possible a reduction in taxes, would auto¬
matically alleviate many individual and business hard¬

over

effective to
adoption

The

statement

of

Military
and
economic
strength
require
adequate
transportation which, in turn, depends largely upon har¬
bor and channel improvements and on their keeping
pace (with other national growth.
A reasonable annual
development program would be a sound Investment of

people's money—and

amendment would

new

spending and

1953

evaluation

munism

the

that

the

ready

of inflation will be greatly reduced. Tnat
the discontinuance of price and wage con¬

Legislative control

Most Ameri¬

be

may

forbids.

appraisal of the outlook for 1953 is complicated by

fact

before
John

careful

a

treaty

a

Constitution

confidence

many

the

of

mess

that

the

PRENTISS M. BROWN

present.

nual

what

proposed

my

Communist-inspired.

are

believe

Chairman of the Board, The Detroit Edison Company

trols,

imperative that the nation's growth continue.
Improved harbors and channels are vital to both indus¬

come

based

are

cooperation abroad without
risking the loss of liberty at home.

priorities. In
my judgment, Congress will regard a balanced buaget as
the prime domestic issue. If the budget can be balanced,

inade¬

and

be

Nothing

than its ambition

could promote international

new

'Congress.
The legislative program

nations.

more

people legal and ethical codes which

on

lawyers

authorize

Republic

during the. first Session

or even

member

Rights Covenant

the

up

of

their'

can

cleaned

affairs

They

of the new

will

indus¬

is

must

night

the Army Engineers with

1953.

how

impose

of

20 yeajs pannot be

Emerson S.* Bowers

$45

some

domestic

return to the

lican Congress and
However, the accumulated

quate the $6,200,000 provision is, in June, 1952, the Cana¬
dian Government awarded a single contract for $13 mil¬
lion for deepening, widening and straightening the St.
Lawrence Ship Channel below Montreal.

future-

to

Repub¬
Administration.

operate at about one-quarter to one-half of the

It

liberty.
a

which

on

many years,

eco¬

concentrate

cen¬

alien to their way of life.
,
The Chairman of the UN Human Rights Commission
has noted that'some provisions of the
proposed Human

subvert

orously attacked by the

Great

much of that work is done by
their own plant and forces. It

of

to

charting

on

the

threatens the existence of the UN

and the corroding influence of Com¬
munism and corruption will be vig¬

million is provided for maintenance,

evidence

political

For

purely do¬

as

right to intervene

any

in

Administration
to

race.

mestic in character. When the UN Charter was drafted
the concept of national sovereignty was
wisely respected.
Article 2 (7) denies to the UN

arrested

paternalism, red tape,
reckless monetary and fiscal policies,

Appropriation

channel improvements along the na¬

As

be

founded.

was

for the current fiscal year, to¬
taling some $581 million, provides
only some $6,200,000, or about 1%

try's capacity during

combat

free

principles

Bill

total, "for

will

Government

The Civil Functions

the

be

energies

situation.

of

Socialism

In

designed

and

nomic

sup¬

a

toward

1953, for the first time in
Congress will not be

of

required

channel

severely

drift

19o3.

measures

bor

political affairs of the whole human
turies, such matters have been regarded

During the past seven years the Congress has
successfully blocked the most dangerous features of Fair

expected

as

preparations are the
our outlook
for 1953
should like to see it.

defense
reasons
why
not

of Jan.

among

activity

seem,

is

issue

and

U. S. Senator from Ohio

35

DEPARTMENT

POWER

VIRGINIA

.

COMPANY

36

36

The Commercial and Financial Chronicle.

(316)

Continued
take

from

30 cents

than

10

of

cents

initrest

and

rates

dollar

the

1953

dollar.
for

viewpoint.

-

-

-

sales

our

on

In

customers.

35

page

,

They amount to less
of

most

of

industrial

our

a

our

make-up.

They should not expect

of the many voluntary rate reductions
our
business over the years.

R.

for

able economic conditions

indicate

an

five million

over

with

coupled
trend

sumption' and
than
'

30%

of

Revenues

tomers

In
I

from

and

work

closing of the
in

in

total

cars

new

speeding

a

between steel

gap

our

This

commercial

A

for

usage

customer

per

In addition to

expect the

we

War II

30%*, On

a

a

have

the

recent

1952.

problems

In

engendered

by

the

"

I.

BUKOWSKI

the

not

Such

of

is

too wet

paid

1951

As

wealth

new
corn

the

•

bumper
fall

the

ago and

While

we

will

Stockers

is sealable at

they

*

Speaking

first

seven

in

creases

1' While

for

local

our

months
retail

of

of

post-election

been

by

forward

Peter

1.

The

for

sales.

to

^dollar

manufacturers and dis¬
and
a
descending price

is

HARRY

tributors,

pression.
chine

The

has

A.

productive

continued

}

intensifying

*

./•///?-

"

its

textiles

ment.

in

in

a

;

of

Retail inventories are
brisk holiday trade.

fairly well depleted

as

a

hensions, with the
about

fact

the

that

relatively
expected
tinue

on

result in

poor

appre¬

more

state

articulate going into

a

lament

of

business, notwithstanding the
the contraction
itself/ if it comes, should be

small pereentage-wise.
On the
whole, the
readjustment which, in my
opinion,'will con¬
through the summer, should have a
salutary
improvement
of

productive efficiency and an
increase in the buying power of the
dollar. The fall of
1953 should see a
healthy up-turn and good holiday
trade,
approximating in units but not
equalling in dollar vol¬
ume the
sales record of 1952.

Savings should continue the present
upward trend.
Luxury purchases may suffer more than
staple lines
A high level of
employment will be

maintained,

but

an

increased proportion of the
take-home pay will be saved
for deferred
spending. With labor destined to
have a
seat in
government, through one of its own
members
in the Cabinet as
Secretary of Labor, the year 1953
should see fewer strikes and less
production loss. On
the whole, a greater
unity of the people may be antici¬
pated pt all levels of our ceojal
structure, in a nation
anxiously groping and seeking for the
restoration of

peace and

serenity.

All of the

foregoing

assumes

there will be

ing of the international situation,
writer

is

in

no

position

to




on

express

which
any

no

worsen¬

subject the

authoritative

investment

;

an

and

anced

1954

recognizes

know

quickest

if

we

con¬

the

dangers

that

to

permit

such

a

theory whatever
concede victory to

to

way

many

economic decline.

We

are

of

debt

and

there

plans to

are

make

economic conditions.

the

burden

Social security

unemployment insurance will help millions of

Purchasing

""

power of our

•

!

.

people is high and

keep it high.

High purchasing

wages, which
We have the

are

the

The

peo¬
:

must

we

result

power

of

comes

increased

-

•

problem is to

provide sufficient incentive to fi¬
nance the installations which will
advance productivity.
To this end appropriate tax
policies are necessary.

,

soon

as

vestment.
Tax

•

reductions

designed

to give business and
in¬
dustry increased financial security will provide a
pow¬

in¬

erful

incentive to economic expansion.
must grow in order to
keep healthy and

;

The

economy

dynamic.;

fast

Our

growing population puts increasing demands on our
equipment, and industry has the - task of
providing jobs to keep pace with accelerated growth of

».

productive

the labor forces which will take
place after another five
years.

During 1953 we have the opportunity to build
soundly
By doing that we will not only assure
stability

for 1954.
'

for

1953 but reduce the threat of
predicted for >the following year.

risen

JOHN

,

national

in

occur

ex¬

sharply.

of any economic

name

the

-

huge

our

rather

reduction in national expenditures will
per¬
mit, there should be tax relief, so as to assure
industry
that it will be permitted to retain
sufficient of its earn¬
ings to keep up a desired rate of progress in
capital in¬

products

has

declined

increase output.

Vr^e

Inialtion appears to be under
trol.
High taxes have nearly
Harry a. Builis

not

with high
productivity.
technology to do the planning and sched¬
uling and to make the new, improved tools which will

'

and eauippurchases have

index

have

ple when the need arises.
..

plant

living

be

flexibly adjusted to

ma¬

the

consumer

Government

the ..cost, pf
moderately.

>

do

actions

our

something about it.

We have at present

As

Wrj?o«

purchase

in

We

and

advantages to help counter¬
are a
wealthy nation. Our
more liquid than they were a generation
ago.
We have long-term amortized
mortgages to handle tne
,

;load

year,

general 'trend
of
wholesale
prices has been downward, while

replacement is indi¬
distributor levels.
Manufac¬

contraction
in business
activity, varying with the character of busi¬
ness itself.
This will lead to some
anxieties and

good

the

Cautious

cated

trend.

of

at all.

slight reduction in capital

a

ordinary citizen, I

banks

*

a

been

incoming Administration

an

act

t

commodity prices have declined and

result**

both at
retailk and
turing will inevitable feel the
impact of this back-up.
Thus, except for production
activity stemming from the
defense effort, we
may well
anticipate a

flow

'

recession to reach

a

act

Stalin."
:

defense and national security. Prices
have been relatively stable although

This picture is
already being
the growing number of poorer

part, by
income reports, and bids fair to
produce
continuation of this trend in 1953. •
-

bushel.

per

economic

our

to

We

probably will not

do

—would

increased, primarily in the fields of

traction in per-unit
profit.
net

upward
enough

as

way

event.

exports

disaster—in the

year

and permit
enlarged savings/,
In¬
dustry has used its retained earnings and borrowed money to expand

M
"

~

foodstuffs, notably
The resultant prospect is that
of
decreasing
sales volume,
expressed in dollars, without
offsetting
economies in
manufacturing costs to take up the con¬
reflected,

its

creased

meats.

year-end

a

General Mills, Inc.

of

an

that

depression

as

going to

BULLIS

curve

ilsen

movement is discernible not only in
but

raised

was

are

During 1952, our country enjoyed overall economic
stability perhaps unequalled since before the great de-

on

Bukowski

in which
may be ex¬

V-

and

•

suen

'

according to predictions.

as well
as the
dangers of inflation. Last
General Eisenhower
said, "But all our people have
come to know that it is the
primary task of any Presi¬
dent and any
government to insure that our
country
never again suffers a
great depression. As a soldier and

era

ago.;

\";

prosperity

not move

oppor¬

'

fall

v

r

^continuing

a

the

consumer

of

traded territory, we feel the
will show substantiaL in¬

Chairman of the Board,

a

pressure

result

a

restored

_

confidence,

pursuit

The

generally.

good, in many lines ex¬
ceeding earlier expectations, but the
competitive factors are being inten¬
sified.. Already buyers rather than
sellers have been
fixing or estab¬

lishing prices.

as

been

feeders

were a year

enterprises.

burst

has

about $1.53

1953

'

clearly discerned

and

recession

tinue to

crop

ators of and workers in small indus¬
trial and commercial

Las

A

receipts will be higher in 1953. ex^en^es
will probably increase
also, but nevertheless, 19">3 should
be a much better year than 1952-and we are
looking

distant fu-

stimulated

Brubacher

r.

r.

,

;

so

There has

penditures

Either through the sealing of the 1952
crop, or through
the marketing of cattle in 1953, much new wealth should
be created, resulting in greatly stimulated business in all
lines., - /.,.\»*•

'!

now

await

tories.

cannot

farmer and feeder than

'

change its schedule. We have
already seen some hesi¬
tancy engendered b.y the anticipated recession.
Busi¬
ness has shown restraint in the accumulation of inven¬

costing about one-third less than

corn

*■

1954 may not occur

caiiiiiy

definitely know what the price of fat
be, when the cattle now going to the feed
marketed,, the prospects are much better for the

are

in

us
..

and f

and

«

risk, the

ours.

Economic tides do

of excellent quality

crop

1952.

feed lots,

cattle
lots

corn

of

will

economic prognosticators have advertised
recession scheduled to arrive in
1954.

What is

.

the

the

and

construction

.

entering a new
in legislation

trend

Commerce

high level.

tunity becomes

resulted

we are

conservative

more

the

the

trade,

,

:

was

1952.

election.Confidence

people feel that

of

our

a

national

Department

They tell us that
outlays will taper off, that consumer demands
be satisfied and that capital1
expenditures are ex¬
pected to decline substantially.
This adds up to "eco¬
nomic danger ahead."
Danger, however, spells opportu¬
nity as well as risk. When we can see the

in this ter¬

crop

the

Company indicates that

may

seal, and which was
feeding quality. Farm-

and

of

a

defense

Corn

to

feeders

A

opinion of this
community banker in Chicago, who
is in intimate association with
oper¬

Holiday

<•

1951, most of which

consequently,

in

'

ture.

*

.the

the Cprn Belt in

pected.

f

too

'

'

stockers

a

The continuing upward swing of
industry and com-^
merce that has characterized
our
economy for the last
seven
years appears to be at, or very
near, its peak.

readjustment is inevitable in

as

wanted to feed the wet corn,

and

President, The Cosmopolitan NatT Bank of Chicago, III.

A

fall

the

of

of

/-

known

<

•

business expendi¬
equipment during 1953. The advance

McGraw-Hill

a

in

it

see

result, business was poor.
Now the situation has materially changed

the close

inflation
,

PETER

in

from the

the utility field we w'll still

years.

;

of

area

continue at

Some of

fore-

my

I

as

is

.

,

doubt in the

some

exploration

1953,

the premise that World
that there will not be a

on

is

tures for plant and

entering into the situation
the very poor corn crop

was

ritory.

phenomenal growth

hope and belief that management problems
so complicated
in 1953. We have gained the
experience of another year in remobilization; material
restrictions and shortages are fast
disappearing; taxes
seemingly will not be increased and labor relations
should improve.
Produciion will go along on a more
than in

There

Co., Sioux City, Iowa

speaking, business

therefore little

; It is my
will not be

keel

and the

high prices for";
going to the
feed lots.
With the drop in cattle
prices, most feeders lost money and :

their number has increased 230,000 or
population basis, this growth is equivalent to
city the size of Pittsburgh.

even

factor

cus¬

expected greater

an

in the number of customers to continue. Since

of World

be

may

locally
was

less

saving and pleasure-giving electrical appliances, which
practically unknown a few years ago, is remark¬
able.
Television, air conditioners and electric clothes
dryers have reached or have begun to reach a mass
war.

Administration.

new

Bank

...

were

market since the

^

farm income will

Korean situation.

situation

cf very poor
and

e

confining

am

the

to

Generally
not good in

con¬

represents

in ti

Belt.

of

ers

domestic

Trust

break out and

not

Further, I

revenues.

our

National

conclusions

iny

change

cast

the

well

augurs

area

1953.

of

up

basing

wiiat

Production of this magnitude

year.

business

our

for

production

own

reductions through lower
of both grain and livestock. The maintenance
of
be one of the prime
problems for the

prices

BRUBACHER

Loan and

War III will

the next few years would

over

R.

our

Farm income has suffered

; •

~

.

attempting to'forecast business conditions in

am

great

Edison

expected to continue their steady growth in
ready acceptance of some of the new labor-

are

The

1953.

Detroit

production

industrial

our

a

defense
the

toward

'

'

_

continuation

a

that have marked

domestic demand

average

.

though

year, even

„

Farmers

On the whole I .look forward to continued

prosperity

;

President, The Toy

growth and
and its cus¬
tomers in 1953.
It is true that automobile backlogs have
been substantially worked off and car sales will become
more sensitive to a decline in income.
However, favors-

reasonable

generation.

crop

sharply reduced.

are

When the price level does decline it is hoped that our
inc.ustnal friends will remember the foregoing contrast
in cost

unabated, in the hope of avert¬

ing another holocaust of war—the third in the lifetime

looking for a slignt rise in
decline in the general price level.

we

1953-54

Pc-ticnt, unremitting toil to ameliorate v.-orld

tensions should continue

Thursday, January 22, 1953

.

con¬

,

.

Chairman

-

B.
of

economic

recession

BYRNE
the

Board,

/ The Hartford-Connecticut Trust
Company

balexpendi¬

Any appraisal of the future, whether immediate or
more remote, must be made in the
light of existing con¬
budget deficit for fiscal 1953 is placed at
ditions, and certainly the status of our
the moderate figure of about
economy offers
$4 billion on a cash con¬
solidated basis.
We adopted credit controls and then ; strong evidence to support the most optimistic pfediciiwiis
lor at
relaxed them when it seemed desirable. Our
least, the next several
debt man¬
months.
With the peak-of
agement and monetary policies are designed to
military
help in
expenditures yet to be reached,"even
fighting inflation; We have found that indirect Controls
tures since the Korean situation de¬

veloped.

The

•

are

effective

more

Dwight D.

than

Eisenhower

direct

controls.

though at

President

promised that the full re¬
sources of the new Administration will
be thrown into
the battle against inflation.
So

enter

we

balance.

1953

Consumer

in

a

condition

of

good

economic

incomes and outlays

are slowly ris¬
Productivity is increasing.
Defense outlays will
probably increase for some months before
reaching a
plateau.

The

near-record
States

nadian

grain

grain

combined
crops

has

production

with

the

of

1952

in

contracts

already let for additonal
expansion, an unseason¬
high carryover of * residential
building, heavy
consumer
buying

from

the

United

carry-over

since 1943.

on

States

the

are

declining

and

the

that

blessing rather than

plus
a

all

Canadian

burden. With this carry¬
stocks, it seems unlikely

a

surplus
shortage of cereal grain will develop
during the

accelerated

point

to

military

extreme

purchases

activity.

The
completeness of our prosperity,
however, in itself justifies a careful
very

John

B.

Byrne

examination,
carried

awav

bv enthusiasm.

the most disturbing

crop in the United States are
bright because of the protracted drought
during the
fall and winter months in most of
our grain
producing
areas.
Therefore, our prospective large carry-over
may
over,

and

.

wheat

July 1, 1953 will probably be the highest

Prospects for the 1953

a

ably

record-breaking Ca¬

not

become

industrial

provided

ample supplies of
grains for all needs of the coming year. Grain
exports

non-ex¬

istent and individual- earnings
high,
is "difficult to. envision
any factor
which might cause a sudden and
abrupt reversal.
Plans
made- and

it

ing.

United

lower rate than antici-

a

l pated,. with unemployment

has

least,

a

sobering

exceeds the

been

a

tention

constant
aunears

debt

cause

to

our

has

paid to the
future earnings.
more

than

are

not

immediate

present debt.

our

and

for concern,

be

we

the

our

that

total Federal debt,

have pledged

dividual

factor is

thought

if

In

private

to

be

picture,
It

debt

is at

today

while the latter has

relatively little
extent

to

which

at¬
we

Corporation and in¬

doubled

in

Continued

the
on

last

six

page

38

Volume 177 ' Number 5188

The Commercial and Financial Chronicle

.;.

(317)

37

t'

•

Evaa

elecled

V..
a

Fund

President.
of

Of

a n n u a

according -to

by

st

is

also

director of

if

Boston.

Bond

Fund

V

.

,

a

Francis I. du Pont Co.

9

r

■

ness from offices at 625
Duquesne
Co., 1 Wall Terrace, under the firm- name of
R. J. Ozol & Co.
1
Se¬ Street, New York City, members
■.
t r
>
.

•%

■

1

■

.

on

Feb.

1st will

Exchange
Melvirt M.

admit

(Special to The Financial Chronicle)
,

B.QSTO N,
Mass. — Mary E.
is with Vance, Sanders

partnership

Cunniff

was

in

the

firm.

previously

a

Mr.

CHICAGO,
L.

partner

St. in iyi. M. Cunniff & Company.

Ill -Devonshire

.

:

111.—Mrs.

;

at

the

;

Blair

has

been

of

the

Marshall

of Milwaukee.

-

added

to

to

1V

Biltmore.-

silver Paul Reserve-bowl-

a

David

Morris,

David

•

Morris

?

Co., for his outstanding
plishmcnts as * President

accom-

the

of

Association

from
1949 • through
1951. Donald C. Cook, chairman' of

the Securities and

mission,
at

/

was

Exchange Comthe principal speaker

the dinned

meeting.

Approximately 400

^

and

;:
',

'

mem bers

guests atterding

had

most

a

?

enjoyable evening. M u s i c : was/, !
furnished by Jeno E artel and his
''orchestra?
?■•' •'
"\?v
•

..

':

Pictures -taken,

will

appear in

at " the

the

Jan. 29.

dinner'

-

•

"Chronicle" pf "
'

•

-

?

-

-

-

,

>^

Boston Investment Old?
To Hold Dinner

Meeting

"/ BOSTON.
Mass.—The first din-:
1 meeting

.

-

n e r

of

the

1

953:;'

calendar
of

the

year

Boston

Investment
Club

b

will- be

1 d at t h e
Boston Yacht
Club on Tues¬
e

■

day, Jan. 27,
at

5

P

.

p.m.,
r

i

*

;

ncioal

;

.

speaker will

Harold H.

Young,v
por

.

part-?

in

charge
Utilities for

of

Eastman,

Harold

H. Young

Dil¬

lon & Co. He
\vill talk on the outlook for utility

stocks for the

1953.

year

-1

'

-

V. A. Gaines to Give

Investment Courses

^

Victor A. Gaines of
Granger &
Co., members of the New York
Stock Exchange, is
giving evening
courses

investments

on

in

the

1 here's

good reason

why the Southern Railway System

School Adult Education
Programs

today probably has

of

terminals than any other

Great

Neck,

Roslyn

and

Port

Washington, L.

I.

two

hour

lectures' permit

questions

and

after

lustrated
New

the

The

talks

with films,

York

Stock

il¬

are

including the

Exchange color

movie "What Makes

Chase, Meyer

and

during

to

Us Tick."

On Feb. 1st Albert W.

member

of

Exchange,

the

New

will

be

Franklin,

York

Stock

admitted

to

partnership in Chase, Meyer, Barnett

&

York
York

firm

Co.,

120

Broadway, New

City, members of the
Stock
name

New

will

be

and

the

cars

have

freight

new

been
cars

doing

—

record-breaking

a

changed

Philip G. Volpe. Exchange

to

.

mem¬

draw, from Chase, Meyer, Barnett
Jan. 31st.




job

of

between terminals. But that wasn't

kind of railroading

that time

will be 100%

soon

we

gained out

on

needed in terminals,

was

the line wouldn't be lost

"loafing" in old-fashioned yards.

That's

why the Southern has been building

new,

ultra

modern

"push-button" yards like the $10 million yard shown

above

modernizing existing yards

—

—

dling methods all along the line.
From

this

new

kind

of

railroading

better-than-ever service to the

SOUTHERN

improving freight han¬

coming

is

growing Southland
.Mir
i

ber, and David Martin, will with¬

on

our

enough. A

,

—

■

Exchange,

Franklin, Meyer & Barnett.

& Co.

hauling

by

Admit;

and modernized yards and

railroad in the country.

Our modem Diesel locomotives
Dieselized

too —so

Firm Name Changes
'

7

more, new

:

4.-

;

i

faster,

RAILWAY SYSTEM

we serve.

\

WASHINGTON, D. C.

.<(
ri'

;'•)'

*

If.,

i,•

•

V.J

7

*iu.

r<
i

/

*y.

'

President

'. • •/.'

'/CU'i
IM

•♦•"U "M".

'

'

the

Company

'

Harry R. Ambit, Amott/Baker
Go., Incorporated, President, pre¬
sented

»

Lorraine

meeting of the New York ;j
Security Dealers Association was';
Jan.- 16,

>

Cunniff, member of the Exchange,
to

McCrum

-

Joins Marshall Staff

dinner

held

•

,

-•

of the New York Stock

.•

Company,

UNION, N. J.—Rudolph' J.* Ozol "
is engaging in the securities busi> v

Francis I. du Pont &

(Special to The Financial chr.omcLKi

&

R. J. Ozol Co.1 Formed \ f:

"

ToAdmit Cunniff

past president
Analysis Club

7 Vance, Sanders Adds

■

.

Vice-Previdevt

The

He is

Investment

of Chicago and * the Boston
curity Analysts Society.

Henry T. Vance,

A member of the

'

and u the f Harvard 'Business

the

of

an¬

Management &
Re¬
Company since 1942, Mr.

Shierling
and

twenty-seven tli

been

Boston-

search

The

has

Vice-President of Canada

General

graduate of Purdi^e Univers-

-

School,. Mf. Shierling has been ininvestment' management
w ork
since 1928.

Shierling

nouncement-

A

it#

Df Canada Gen. Fund

27th Annual Dinner

•_

V/

E. V. SHierting Is V. P.

Securityr Dealers Hold

S3

The Commercial and' Financial Chronicle... Thursday, January 22,

(313)

and

vears

total

staggering

the

turnover of demand'

indicate that snortages
our

ket place, some

be

In

outlook for Beneficial Loan corpora¬

were

areas,

recession

of 5%

(say

to

LEWIS

con-

"

CASTLE.

G

i

of Duluth,

Company,

Reserve

in

production can more

schools,

with heavy

are

;

This figure compares to 7,192 units in 1951

8,031 for the record year, 1950. Hay ward led all
incorporated communities of the county with 1,379 units

Oakland followed closely with 1,285

through November.
units.

mew

•

should

The total value of all construction in the county

reach

$100,000,000 by the end of 1952, based on reports
Through November. 1951, a record year, registered over

$105,000,000 in value of permits recorded. Bank clearings
through November 1952 showed a slight 1% gain overAhe similar period of 1951. Postal receipts registered a
moderate gain of 3.6% for the same period.
Real estate transactions in
1952 revealed moderate
declines from the more active records of 1951; Deedsr
recorded in Alameda County for the first eleven months
of 1952 totalled 24,566 as compared with 27,282 in 1951.
Oakland, transfers of real property during the same

-

V. %

period registered a 4.8% drop;

:;

■

,

'

J. LUTHER CLEVELAND

Trust Company
York, New York City

Chairman of the Board, Guaranty
;

!

of New

.

deposited in northern Minnesota
the

form

of

rock/. This

tacanite

Attempts to judge the business outlook for 1953 face
more than the usual number
of uncertainties. This is

%

produces, after^eo'nsiderable process¬ 1.
ing, a very -rich iron ore product.
partly because some salient features of the present ecoTheir investment in' buildings and "momic; situation are essentially temporary in character;
A and partly because the advent'of a
equipment,
railroad's,'%townsites,
v new
breakwaters and loading docks,, rep¬
national Administration and a
new Congress always introduces ad¬
resents a substantial yolume of in¬
vested capital, and northern Minne¬
ditional questions.
Business has entered the new year
sota cannot help but.', benefit from
such a large 'expenditure of funds. "
at high momentum, and it seems to
*<be generally
agreed that this will
Logging in the-forests of northern

big backlog of heav£ capital work

roads,

1951, and

1951

for the year.

Duluth, Minnesota, as the gateway to the Mesabi Iron
coming year with con¬
hope.' Three large mining groups: Erie Mining

are

new

over

fident

place more reliance on free
government manipulations.
'
.,A

building
plants, chemical plants and

1952.

of

4and

'

expect will

and

volume

business

substantial

expected to show a l%-2% gain over
Christmas buying in December.
*
Home construction in Alameda County during the first
eleven months of 1952 indicated a total of 6,900 units

\;A

Minn.

the

lagging i% under 1951 volume througn Dec. 13, experi¬
enced a 4% rise for weekly sales enuing Dec. la, 1952,

.

on

than be made up by a

repairing

The

Mining Company and Oliver Iron
Mining, Division of U. S. Steel, are
developing, the vast. resources which

Whatever leveling off in defense

in

snow

may

Ore Range? looks forward to the

surge

new

a

but without any

we

margins

of

debits, usually an excellent gauge of general busi¬
conditions, revealed a 3.6% gain for the first eleven
months of 1952. Department store sales for 1952, though
Bank

re-examined.

of confidence,
speculative orgy in
inventories or otherwise, based on a
change in direction of national af¬
brought

than

Profit

high of $79 in September,

ness

President, Northern Minnesota National Bank
,

that

products.

an

tinuation

ap¬

rates

10%

national} income) which
rather common before the elec¬

.The change in Administration has

markers

already

have

.

weigh and assess the prob¬

tion must now be

fairs

competition

that

policies of the Federal Reserve System, will

interest

decline .in

Caspersen

increasing

believe that forecasts of even -a

mild

O. W.

see

all-time

1952, a
weekly earnings in 1951. Unem¬
ployment in Alameda County reacned approximately
12,000 in December. This was a slightly heavier unem¬
ployment than registered at the close of 1951.
Other economic indicators point for growth and con¬

firm.
Atlhough 1953 will begin
under propitious circumstances, it is quite possible that
the peak of the boom will be seen during the year.
By
the end of the year it is not unlikely that the process
of correction of imbalances built up in the past decade
will be clearly evident.
'
"
•
From the above, I do not wish any reader to think
that I am definitely bearish; I am not, but I do bespeak
a cautious approach in planning for the year ahead.

consumer

changes in each of these

able

shall

Pressures

increasing pressure later in the year.

keep

spending.

we

we

1653.

to increased business and
the Metropolitan Oakland

$7 gain over average

recovery

tive credit

formation by business, gov¬

we

in

added impetus
development in

Average weekly earnings of local production workers
reached

in the first half of the year but will be
fidence wave, the pressure of large tax payments on
depleted corporate treasuries, and further increases of
instalment and other individual borrowings will sustain
the demand for bank loans; the present large volume
of loans in relation to the capital of banks, and restric¬

closely dependent on the prospect for consumer
disposable income in 1953. This consumer disposable
income in turn depends on the jobs and incomes gener¬
ated by the four areas of spending
that make up business activity in
the national economy: foreign trade,

As

opinion

my

markets

manufactured

to

tion is

and

industrial

peared in basic commodities and farm prices will extend

Corporation

spending

Pleasanton,

Area in 1952.

the expansion p.ans of business may

or

Naval supply

Center, expansion of Parks Air Force Base in imar-by

postponed.

for

O. W. CASPERSEN

ernment

the Oakland Army Base and the Oakland

Of it margins of man.y

coming into ever closer equilibrium in the mar¬

demand

under

capital

pi

.

*

under pressure
since
the' first
quarter of
1951 and, in spile of this,
ma.,or expansion of pioductive facilities has continued.
How much of the piant expansion in the last two years
has been the free decision of management and how much
l.as been die to
me needling ana vvneeaiing of govcrnme it is not known now.
With the forces of supply and

some

The 1953 business

most

business enterprises nave teen

types or

ing debt structure.

President, Beneficial Loan

Tlie

are

mid-western

later

deposits, characteristic of the

of business bOortvs.

stages

productive
capacity is at a peak and if we are to continue to produce
&t the present rate, further expansion in sales financing
seems to be inevitable.
This prospect must be appraised
in the light of the nearly $24,000,000,000 of individual
credit now outstanding, the extension of which has con¬
tributed largely to the high level of prosperity,
but
which in the event of a slowing up of military purchases
or a change
in the. trend of our economy, might for a
temporary period, at least, aggravate the decline. While
there appears to be every justification for optimism as
we approach 1953, just good sense seems to dictate that,
individually and collectively, we should preserve a liquid
condition, and examine carefully any expenditures con¬
tributing to the further expansion of an already stagger¬
will largely disappear,

indicated by renewed interests of eastern and
plants seekirtg western sites to serve this
rapidly-growing market.
J
Defense activity, consisting of prime defense contracts,'
sub-contracting, military shipments funneling tnrough
1953

business booms supported by debt
uiiiToi m record of precarious bal¬

of confidence
brought expansion of debt, is the h gh rate of

that has

material

raw

a

Another statistic, reihied to the wave

ance.

of

•

for the coming year

i Estimates

in

and

expansion nave had

approsc-.es

now

$285,000,000,000.
,

extended period

36

Continued frcm page

1953

power

.

so on.

-

A 5% "recession" in 1953 would leave

the

same

-of $255

personal income

.

1951, when it was in the neighborhood

in

as

That is a whole lot of purchasing power.
Consumers may have to be coaxed by better values to
use it since they are no longer afraid of shortages.
Evert
without coaxing consumers will be coming more freely
into the market than in the early part of this year.

^

billion.

Even if personal income goes

off

as

much

as

.

Minnesota

10%, real

income received by consumers should still leave them as

purchasing power as in 1951, We appear to have
turned the inflationary corner. Consumer prices should;
be some 5%
lower and consumer purchasing
power
should be helped somewhat further by some tax conces¬
sions at the time when the Excess Profit Tax expires for

business.
In

view

of the

above

the business outlook for
is

analysis, our conclusion is that
1953 is certainly good if there

so-called "recession" and that it is still good even

no

if there should

10%. And that

be

a

means

mild readjustment by as much as\
a good outlook for the use of credit

by consumers, and for the Beneficial Loan Corporation
whose more than 750 subsidiaries in the United States
and

Canada make

sn^all loans to families.

ALLARD

A,

GALKINS

Chairman of the Board,
The Anglo California NatT Bank of San Francisco, Calif.

The

be

a

be maintained

very

Northwest Paper Company * of Cloquet, Superior Wood Products Com¬

expected,
ity

ucts,

in

satisfactory volume of raw material.

a

of

years

won

over

ually

In the absence of

Gross

National

Product,

Plant and equipment outlays have continued
high levels for several years, resulting in an
estimated expansion of from 50 to 60% in basic produc¬
at

President, Central Bank, Oakland, Cal.

Government

very

capacity since World War II. Some observers be¬
that this expansion has been excessive and that

tive

backlogs
the

of

unfilled

prospects

for

orders

continued

and

,

r

.

some

-

of

new

1953

'of the
tries
A Hard

A.

Calkins

equally confident that great further growth lies ahead for
American industry over the long term.
But there are
signs that pressures and maladjustments are developing
that may soon require correction. A straw in the wind
the weakness during most of 1952 in certain basic

is

commodity prices. Farm prices are presently under some
Debt of all kinds has increased steadily for an

business

Alameda County

Committee
a

most

promotion

productive indus¬
lor 1952.

:

program

new

and

ex¬

:

Metropolitan
(ten months)

Dunlap c. Clark

plants and 60 ex¬
pansions of existing facilities. These industrial projects,
with a combined investment of
$23,148,796, are expected
to create 2,393 new jobs within the
county when in full
operation. Over 7 million in new annual payroll dollars
will be generated by these new jobs.
Encouraging signs of future industrial development in
new

merely

peak.

to

compensate

and improved

facilities is one of the strategic points

be

until mid-1953, and
.•>

Oakland Area for 1952
41

New Indus¬
com^

Capital investment in
panded plants in the
included

activity

reporting the

prospective

postwar expansion
for inadequate de¬

closely watched for possible indications of an
easing of demand.
Another important factor in the outlook is the rate
of governmental spending.
Present schedules call for a
further moderate rise in defense expenditures at least
to-

is the recent announcement

•pletiqn of
trial

local

their

of depression and war. In
it seems to be a fact that the stimulus im¬
parted by accelerated amortization has spent most of
its force and that the rate of business investment in

to the total

Promising

from

velopment during the years
either case,

for

will be forced into idleness once

recede

demands

served

has

Agents and the California
Manufacturers Association.

large

plant facilities

Others maintain that the high rate of

defense

chasing

Now I do not want to argue with
statisticians and economists. Certainly I am in
agreement
that the immediate outlook for business is excellent I am




,

the new year are recent surveys
by the National Association of Pur¬

government outlays for the national

pressure.

.

.

buying income.
Concurring in this prediction of a
sound business pace in the first part

to

defense
and
say
"continued good
business and prosperity are in pros¬
pect through 1953." " * "

-

spending should reach its peak
during this period, and the recertt
round of wage increases should add

to

»

.

unforeseeable changes in the politi¬

purposes^

CLARK

defense

projections of continued high
expenditures for new construction to

two

expenditures for plant and equipment and gov¬
expenditures for national defense and other

level-experienced in 1952.

the

almost

ernmental

reality and

of

moved grad¬

for

background, uncertainty regarding economic trends
half of 1953 centers mainly around busi¬

ness

lieve

the

the

in the second

The. business outlook for the Metropolitan Oakland
Area in 1953 is for a continuation of the general business

earnings, has finally reached the
point where it is appraising current
earning
power
at
normal
priceearnings ratios. Mistrust of the fu¬
ture
is
turning
into
confidence.
Statisticians point to the rising trend

increase
like

to produce an
prices.
Fortu¬

prices have

downward

schedules.

armament

cal

confidence and assurance to the

DUNLAP C.

to the view that de¬

postwar

time

a

The outlook in this respect could, however,
change swiftly in the event of a marked deterioration
of international relations
and an acceleration Of re¬

things of the past and that uninterrupted
growth is the order of the day. The
stock market, long skeptical of the
of

at

years.

are

permanence

Any substantial

demand

wholesale

J. Luther Cleveland

ahead.

economy has pressed forward for quite
with only minor corrections. Gradually,

skeptics have been

pressions

total

nately, there is no visible indication
a tendency. On- the contrary,

Manufacturing, hardware, wholesaling and shipping
continue as strong stabilizers of. our business economy,
and with a sympathetic
and understanding approach
toward business enterprise that we anticipate from our
new Administration in Washington, the people of Minne¬
sota look forward with

manpower

of such

of the Duluth area.

power

is not to be

industrial capac¬
are almost fully

present would tend
inflationary rise in

Cru4e oil from Edmonton, Canada, is now being piped
to the Duluth-Superior harbor, and a $7 million refinery
with an 11,000-barrel capacity will soon be in operation
adjacent to Duluth. " Consideration is now being given
to extending
this pipeline to Port Huron, Michigan,
which will require an investment of considerable funds
for such a project, all of which will reflect itself in the
buying

and

because

employed.

pany-of Duluth, and other similar users of wood prod¬

for several months at

Sharp' expansion

least.

high level

span

many

*

Castle

.

year

a

6.

Lewis

much

continues* to

important industry, and supplies the

probably longer, with no substantial

decline for many months thereafter. Plans of State and
local governments suggest that Federal spending will
be
supplemented
by
strong
demand for highways,
schools,, hospitals, and other public works. Moreover,
any decline in total governmental spending will tend to
be

offset

by

reduced pressure on taxpayers and more
for the purchase of consumers' goods

disooscble income
and services.

The outcome of the 1952 election is
to

portend

—fiscal

more

and

generally believed

conservative—that is, less inflationary

moneary

policies,

together

with

Continued

on

a

more

page

40

Volume 177

Number 5188

The Commercial and

...

NASD District 4
El

Minn.

At

—

Company, Incorporated, has been
formed with offices at 17 South

a

to continue the in¬
meeting of District Committee No.
vestment business of August Lo¬
4, National Association of Securi¬

High Street,
renz.

ties

Dealers,

J.

Lorenz,

Secretary

and

Inc., held

Jan.

Donald E. Mc-

12, tion

Officers of the new corpora¬

August Lorenz, President;
Lorenz, Vice-President, and

are

M. E.

Farland, Vice-

New Eis

Treasurer.

The present

COLUMBUS, Ohio— Lorenz &

rJeCIS V"
Officers
Wia

Joins J. S. Strauss

are

Partnership
partnership

ox

Leo

Eis & Co,-Will be dissolved Janu-

arly 31st, and on February 2nd a
partnership will be formed
SAN FRANCISCO, Calif.— consisting of Leo Eis, member of
the
New'
York Stock Exchange,
Harry E. Beebe is now connected
with J. S. Strauss & Co., 155 iMont- general partner, and N. E. Eis, lim¬
(Special to The Financial Chronicle)

gomery

Street.

-

Offices of the firm

at

K

a

1

(Special to The

neapolis,

of Kansas

City, Mo.

'

was

for

WBmm

the

coming year,
and E. J. Me¬
lt

endrick,

Vice-Presid

e

n

t

and

Treasurer of

Johnson-McUv.ia.-

Keridrick

Cb.,
Inc., Minne¬
apolis,
was
elected
District

ivlcFariand

£..

Secretary.

Committee

No.

4

in¬

cludes all security dealers in Min¬

nesota, North and South Dakota,
Montana.

and

New members of the Committee
elected for three-year terms Wefe
John G. Kinnard of John G. Kinnard

&

Co., Minneapolis, Thomas
of
Paine,
Webber,
Jackson & Curtis, St. Paul: and
Wright G. Wells of Wright Wells
and Company, Austin, Minnesota.
H.

Garrett

Elected to

three-year term

a

the Board of Governors

was

on

Har¬

old E. Wood, President of Harold

E. Wood & Co., St. Paul, who suc¬
ceeds Ira
D.
Owen of Allison-

Williams

Company,

Minneapolis.

Chas. Bodie Elected

By Masonic Lodge

Ctiarles A. Bodie, Jr.

BALTIMORE, Md.—Charles

A.

Bodie; Jr.,"Manager of the Trading
Department

for

Stein

Bros.

&

Boyce, has beeh elected Worship¬
ful Master of the Oriental
Lodge
No. 158, A. F. & A. M.
>

has very
WEAmerican
LEARNEDhoiisewife
a vlong, long
time definite
ago thatopin¬
the
ions

Dacbe & Go. Admit

on

what she

shortening

or any

wants

jin a soap, a shampoo, a
of the other products we make

for her.

New Partners
Bache

&

Naturally,

Co., 36 Wall Street,
New York City, members of the

we

New

wishes—and

York Stock
Exchange, on
February 1st will admit Charles
D. Halsey, and Robert L. Raclin to
general partnership and Harold C.

Price and Marvin J. Silberman to
limited partnership in the firm.
Mr. Halsey has been a
partner of
Laird, Bissell & Meeds.

On Jan. 31st James A, Fayne
and Edward C. Jordan will retire
from limited

partnership

in

like

to

we

always cater to those opinions. But
farther. We like to anticipate her
surprise and delight her with new

go even
to

and better

products before she herself is aware that

she

them.

wants

Since the advent of

we've

Because the more we try to

synthetic detergents, for in¬

our

their

use

becomes—the

It

as

Feb.

Stock

the

Exchange,

will

admit

O'Keefe

and

Max

on

Chauncey B.
Schwartz

to

partnership. Mr. 0:Keefe has been
a

partner in

Feb.

Leo

Eis

&

Co.

On

1st, also, Robert S. Gordon,

general partner in Tobey & Kirk
will become

a

limited partner

the firm.




in

growth, in turn, has enabled P&G to be¬
providing employee benefits such

leader in

Guaranteed

Employment and Pension and Profit-

directly in the company's continuing success.

City, members of the

1st

the Com¬

Sharing Plans by which our employees may share

O'Xeefe A Schwartz
York

means to

helps the Company continue the steady growth
enjoyed for well over a century. And this

come a

Tobey & Kirk, 52 Wall Street,
York

it

women

widespread

it has

Tebey & Kirk to Admit

New

more

more

pany and to its thousands of employees.

firm.

New

please the

products—and the

use

constant

given the nation's housewives Tide,
Cheer, Dreft, Joy, Prell, Drene and Shasta. Each was
'an instant success. Yet we have
improved all of these
stance,

products several times since—simply because Proc¬
ter & Gamble's
policy has always been "Progress
Through Constantly trying to Please."
who

Progress Through Constantly Trying to Please

FALLS,

nected with Waddell &

elected Chairman

Street,

;

Financial Chronicle)

CUYAHOGA

St.

Paul and Min-

Broad

Ohio—

Robert V. Tyson has become, conn

&

m a n

Company,

30

City.

With Waddell & Reed

new

ited partner.

located

New York

President of

.

39

(319)

Daniel

Now Lorenz & Co.

i

MINNEAPOLIS,

Financial Chronicle

Reed, Inc.
1

40

January 22, 1953.

The Commercial and FinancialChrOnicle.".'Thursday,

(320)

will

payroll of $153,000,000 and .employed approximately100,000 persons, representing one person out of four gain¬
fully employed. ;Alabama produced more lumber than
any other southern state and ranked fourth in the nation..

pal effects of the change of Administration on business
developments Will probably be psychological.

Administration at Washington, While it is realized many
serious problems lie ahead which will require much

In 1952, especially in the concluding months, the. rapid
expansion of bank loans contributed to tight conditions
in the money market, short-term interest rates firmed,
and the yields on short-term Treasury obligations
^con¬
sistently averaged above - the rediscount rate.
How¬
ever, neither the discount rate nor the prime lending
rate was increased. The seasonal increase in bank loans

time and effort to solve, we feel that these responsibili¬
ties will be met and administered by the best available

absence of evidence of

Continued

from page 38

;

i *

,

.

sympathetic governmental attitude toward business. It
take time, however, for these policies to produce
tangible results. For the immediate future, the princi¬

The

outlook

moderate

for

1953, viewed

as

There is much optimism with the coming of the new

whole, justifies

a

wholesome
though possibly somewhat painful readjustment to a
sounder basis of operation must be faced. Whether the
readjustment begins in 1953 or later, its unfavorable
optimism.

Sooner

later,

or

a

the Federal

Chairman and President, The B. F. Goodrich Company

which too often characterize boom periods are

For the year 1953, the rubber manufacturing indus¬
try may have its best sales in history.
The

COLBERT

L.

total

new

States during

President, Chrysler Corporation

1952

six dollars' worth
that formed
gross product in

one out of every

end

goods

nation's

our

ties..

security. As
a result
of restrictions on civilian
production in a number of essential
industries such as ours, serious limi¬
were

begin

we

a

new

turning

cut basic materials

support the hope
th-f the volume of output of civilian

always has

■«,

living and

greater prosperity in America.
High volume operations are particularly essential to
the most efficient functioning of the automobile industry,
barring sudden unexpected increases in defense de¬
mands, I look forward to higher production of passenger
cars and trucks in 1953 than in 1952.
and

for

The market demand

passenger cars still ex¬

new

indications that enough
steel may be available throughout the coming year to
meet not only our present defense production require¬
ments, but also the needs of civilian production, includ¬
ing the automobile industry.
supply, and there

JOHN

S.

are

COLEMAN

President,, Birmingham Trust National Bank,
Birmingham, Ala.

posits, manufacturing capacity and investments in plant
and, equipment reached a new high in 1952, and it is
felt further substantial progress will be made this year.
One of the recent important events
the merging

of Sloss-Sheffield

Steel and Iron Company into United
States

Pipe and Foundry Company

and the announcement that

company would move its head¬
quarters to Brimingham. Sloss Com¬

1953

-John

ing the annual production capacity
to 3,350,000 tons. A third continuous

S.

*!', t

galvanized line will be added to Fairfield Sheet Mill.
It is thought that the demand for steel and iron products
Will continue good during 1953.
industrial

development of

Alabama within the
that Alabama

three years is expected to be such

Power

Company, serving the major portion of the state,
will build more than $100,000,000 worth of new generat¬

ing, transmission and other facilities.

Generating

capac¬

ity is expected to be increased 400,000 kilowatts, bringing
the company's total to more than \lk million kilowatts.
With the completion of

generating
hydro.

capacity

additions, 68%. of the company's

Will

be

in

steam;

the remainder
I

For
the
15-year period—1940-1955—the company's
production of power for use in its service area will have

increased from

billion

kiiowalt

1.7

billion

hours,

an

kilowatt hours to nearly 7.8
increase Of 360%. This in¬

crease in electric power use is orre of the best
indicators
of past and future economic development of the area.
Due to drought production of cotton in the state was
cut
2%
to
890,000 bales.
Cotton
mill

consumption
through the 11-month period ending November, 1952,
was 1,062,217 running bales, a decline of
7% from the
preceding year.
The production of livestock in'* Alabama is an im¬
portant and increasing business. "It-is reported that in¬
,

come

from this

source

pared to $173,807,600
that period.
,

Last

year

in 1952.was

income

$163,859,712

derived

from

Alabama forest industries had




interest rates seem likely to
in 1953 not far different from their average in
1952. Also, if the current expectations "with reference
to business conditions are realized, demands for bank
average

credit

an

as com¬

cotton

in

estimated

on

business and indviduals will doubt¬
during the year.

the part of

less continue at high levels

SIDNEY B. CONGDON
President, The National City Bank of Cleveland, Ohio

a

modest growth in 1952
This has been a wel¬
development inasmuch as the
year's increase of approximately 3%
played

a more

1951.

than in
come

well in line with the long-term

was

growth trend of general business ac¬

tivity. The demand deposit increases
of 1950 and 1951 were larger and

perhaps contributed to inflationary
pressures in those years. During the
past year, savings deposit trends
ha ye reflected (he gratifying return
of countless American
families to

-satisfactory

will, open/the

has been an excellent one for the bank¬

The past year

ing business, with good but moderate gains occurring in
total deposits, loans and bank earnings.
Demand deposits of individuals and business dis¬

this

traditional habits of thrift, and

important
factor in bringing inflation to a halt.
Loans to business rose • again in
1952 but the expansion was some¬
in turn has

year

.

been,

very

a

.Sidney B. Congdon

what

and that interest rates will not dis-;

The slower "growth

play any significant downward trend'

expansion phase of both the defense program and. the

long
levels,

Coleman

of Government securities.

balance, therefore,

On

bank credit will be well maintained

so

completed, in 1953, thereby increas¬

The

lively to be

year for banking.
I with loans at record
peaks and with interest rates in the short-term money
rr/irket at their highest levels for a good many years.
Prospects are that the demand for - ■ ' \

Corporation states that the expan¬
sion of its open-hearth steel capac¬
ity by 500,000 ingot tons will be

next

is

banks

Most

large cast iron pipe plants here.

Treasury

the prices

President, Bankers Trust Company, New York City

The Tennessee Coal and Iron Di¬
vision of the Unitecl States Steel

prospect of

weakness in the bond market upon

S. SLOAN COLT :

ter

two

increasing supplies of medium and
securities may contribute to some
occasion and in any
event is likely to prevent any significant increase in
bond prices. However, it is likely that the funding pro¬
gram will be approached carefully and cautiously, and
that the Treasury debt management progam will be so
conducted as not to contribute to marked weakness in
The

loner-term

.

the lat¬

pany has been one; of the largest
commercial producers of pig iron in
the South. The Pipe Company has

result of the change in

a

eration.

,

The level in the Birmingham district of sales, bank de¬

was

duced

Collyer

heed

year our na¬

can be increased. And volume output
the key to an improved standard of

ceeds the

larger gain in tire Sales is
Because the output of new

in the past three years will
replacement tires during the
coming year, total passenger car tire sales may reach
78,000,000 units as compared to 70,000,000 in 1952 and
truck-bus tire sales may reach. 15,700,000 units, com¬
pared to 14,600,000 in 1952.
The per capita consumption of rubber in the United
States today is 17.8 pounds a year, compared with one
pound per person in the rest of the world. As new
roads are built in other countries, as more goods and
people are transported by motor vehicles, and as stand¬
ards of living improve, rubber will be in increasing
in demand throughout the world.
Expansion of facilities and the development of more
efficient
manufacturing methods and processes have
increased our country's capacity for producing., man-,,
made rubbers to 1,040,000 long tons per year. This sur¬
passes the production peak reached
near the end of
World War II.
v
The government's decision in 1952 to ask for bids
preparatory to estimating the worth of governmentowned rubber-producing facilities is important to both
the people and the industry of America. This move is
a constructive step in the lease or sale of the man-made
rubber plants to private industry and can help to
reverse
the dangerous trerd towards the socialization
of the supply of man-made rubber in the United States.
New developments in the tub^less, tire, first intro¬
duced by B. F. Goodrich in 1947, Jwere among the
company's greatest contributions to the safetv of Amer¬
ican consumers during the past year.; The B. F. Good¬
rich Life-Saver, a new premium tubeless tire which
has been proved to provide maximum safety against
skids, blowouts and punctures, was introduced in 1952.
John L.

activity in 1952 was very
equal to the country's all-

tion's expanded facilities for

been

a

automobiles will probably be higher
in' 1953 than in. 1J952 .and.; many of
the record pumber of vehicles pro¬

time high year.

goods

!

1952,

placed on the output of

a more

As

rubber-jproducing facili¬

Nevertheless, because of high level
operations in/other industries, the

As

restrictive credit policy.
Administration, the prob¬
lem of funding some of the short-term ^Treasury debt is
likely to receive more attention. While it is difficult
to determine exactly how much short-term debt is ap¬
propriate for the economy, it seems generally agreed
that prudent debt management makes desirable jsome
lengthening of the maturities of Treasury obligations
Doubtless a start will be made in this direction in 1953.
One possible step would be to offer medium-term (say
five to eight securities) to replace maturing issues. The
proposal to put out a long-term . marketable issue (say
30 years or longer) ;may also receive serious consid¬
ing

own

foreseen.

nearly

Colbert

America's

automobiles.

economic

l.

from

While the total production of all
goods and services in, the nation is
expected to increase about 2% over

total volume of the nation's civilian

l.

coming

man-made

1952 went for national

tations

new

total

services

total

of the year.
Under these conditions, the authorities
might see no pressing need to raise the discount, rate.
However, the reappearance of inflationary pressures, ac¬
companied by a continued growth of bank loans in the
early months of 1953, would raise the question of adopt¬

about

1,275,000 tons
rubber, both
crude and
man-made, will be1 consumed in the
coming year, an .increase of 3%
over
1952, with about 60% of this

production with high enjoyment can be contirued irt
oi

that

inventory accumulation, bank loans to
during the first half

by

business should decline seasonally

consumption in the United
about l,24o,000 long tons. It is

was

of

America's outstanding industrial performance in the
year 1952 gives us reason to be hopeiul that nigh volume

Approximately

companied

rubber

estimated

1953.

economy, doubtless contributed to the decision by
Reserve not to raise the discount rate.
Developments in credit policy in 1953 will depend
upon the course of commodity prices, inventories and
bank loans.
In the absence of resurgent inflation ac¬

the

JOHN L. COLLYER

avoided in the meantime.

L.

fairly late in developing and this, together with the
active inflationary pressures iir

was

people.

effects will be minimized to the extent that the economic
excesses

'•

.

as

business continues at high
sentiment

has ''mproyed

The elec¬
interpreted
as presaging
a more favorable cli¬
mate for business in the years ahead. ;
So far, the upturn in'business in the \
closing months of 1952, has;been of/
fairly modest proportions and has not
been accompanied- by the. speculative /
accumulation of inventories financed
through the use Of bank credit.
returns1 have

While
what

year
a

bank

more

loans

been

increased

enabling
Bank

in

from
on

S. Sloan

Colt

some-

that business

than

enjoy

the appliances

and

on

in

the average were about 10% higher

1951.

This

favorable

trend

stemmed

a

a

bank's selling

prices and perhaps some comment is

appropriate as to why the banks' "prices" should rise
in a year when most other prices are stable or declin¬

ing.

Interest rates have moved higher because the Fed¬
policies which had made al¬

eral Reserve Board ceased

than they did in the corresponding period of 1951,

doubt

earnings

to

available in mounting numbers.

now

higher volume Of loans and rising interest rates
both loans and investments. Interest rates, of course,

are

was

due to normal

seasonal factors.
I

1952

families

many

automobiles

in the second half of last

large part of the rise apparently

reflected the near-completion of the

goods has been showing up in the form of substantial
gains in consumer instalment loans, wnich in turn are

,

greatly in recent months.
tion

1951.

1950 or

in

capital equipment program of industry/However, the
increased availability of material*! for consumer durable

.

Business

smaller than

most unlimited amounts of loanable funds available at

low rates.
The Board

optimism will be carried too
far and lead to competitive bidding for raw
materials,
an
uptrend in commodity, prices: and speculative ac¬
,

cumulation of business inventories. At least, the stabil¬
ity in most commodity prices indicated that this process
was not under way at the year-end.
I believe that the
spirit of caution evidenced by the. business* community
in the postwar years will prevent such a
development.
The growing size of our productive
capacity is a sober¬
ing factor in the business outlook, and provides real
protection -against the resurgence of inflation.
The outlook for banking is, of
course, particularly
subject to Governmental policy in two fields: the credit
policy followed by the Federal Reserve System, and the
debt management policies adopted
by the Secretary of
the Treasury.

dropped that policy because it was contrib¬
Since the abandonment of the policy,

uting to inflation.

interest rates have been moving in the direction of the
.natural level which would result from a free competitive
demand for the

supply of real savings.: In short, interest
higher in 1952 because in prior years they
were artificially depressed by the policies of the mone¬
tary authorities. But despite the increases of the past
18 months the cost of borrowing money is still far lower
than in the 1920s, whereas the cost of nearly everything
else is substantially higher.
rates moved

The banking outlook for 1953
erate

is for continued mod¬
growth in deposits and for interest rates close to

current

those

levels,

with

conditions.

no

Bank

price
loans

inflation

should

likely

average

Continued

on

under
close to

page

42

Number 5188...The Commercial and Financial Chronicle

Volume 177

by corporate, insiders andinmaking fully available to all stockholders significant financial and
other information about? their

Continued from page 6

Some Aspects

of
Negotiated Markets

companies, Moreover, I am confident it need not and would not
have a detrimental effect upon

will occupy it all the way to London." Undaunted the young sol-

the over-the-counter* markets. It
neither requires the listing of securities on exchanges nor does it
4<But, Madam, I'm very tried. WilL in any way change the fundayou permit me to sit down and mental considerations involved in
hold your dog on my lap?" To determining which market is the
which the lady snapped back, "No, appropriate one on which a parI will not. Now will you please ticular security should be traded,
go away and stop annoying me?"
However, if it can be shown
With
that the soldier leaned that, there is any real danger that
over, picked up the dog and threw the. Frear Bill would inju.v the
it out the open window. At this negotiated
markets,- we at the
point an Englishman in the com- Commission would very sympapartment turned to his travelling thetically
receive constructive
companion and said, "Gad, these suggestions as to how to meet the
Americans are peculiar. They.dual problem of serving the indrive on the wrong side of the
road, eat with their forks in the "
wrong hand, and throw the wrong
dier continued to press his point,

,

(321)

vestor onthe one hand and preserving, on the other, for both the
auction and negotiated markets
the appropriate balance of competitive opportunities. The Frear
Bill in: my .opinion is simply another step in the right direction
of making the ownership of corporate securities more attractive,
If adopted, I am convinced it
would encourage many potential
small investors to join the ranks

contributed to, a
phenomenal
growth in the American economy.,
We are producing goods and services' today at the-rate of- $340
or $350 billion annually. Constant
expansion continues to be the order of the day. The economy is
truly dynamic, and many economists predict that in a few years
our gross national product will be

ated only;by. the same constant
attention and vigilance that produced 1 them. Both Government

well

item of property. Pieces of paper

$400 billions

over

a

and.

industry - regulatory bodies
always on the alert

must remain
to

prevent, deterioration in these

.

standards.
Let

sity

none

of

of

us

doubt the

preserving

standards. Securities

year.

owners

in America's cor¬

xi

x—n

t_i

^

a

xi

J11

"

*

there be no mistake about

it. If the statutes administered by
the SEC were

eliminated, the.

ac¬

tion would be misdirected. Those

.tossed

we

and

out.

want

be

to

the fringe; operators
—the boiler room and bucket shop

kept out

are

operators—those who contribute
nothing to our economy and
merely feed like parasites on in¬
vestment capital they fraudulent¬
ly extract from unsuspecting in¬
vestors. Legitimate broker-dealer
firms have benefitted rather than
been harmed by the SEC—a basic,
demonstrable fact which must not

be forgotten.

Importance of Over-the-Counter
Markets
\

Because

of the greater public¬

ity given to
ties

our

country's securi¬

over

the past two decades would

been

have

impossible

utterly

Through the distribution mech¬
anism established and maintained

'by dealer's such as you, fresh capi"tal for existing
businesses wish¬
ing to expand as well as for new
is

businesses

...

weVe

from

obtained

the

growing

more

pletion at our Dixie Plant in Louisiana will enable us to

for civilian

double

our

ammonia output in

1953. This

will be

able to supply the

fertilizer industry with

about twice
will be

a

as

much

jobs and new goods. Thus.
they raise our standard of living;
and, people throughout the coun¬
try are afforded an opportunity to
invest some of their savings in

Ammonium nitrate will be produced

of

the- future

America

and

by the

new, ex¬

Stengel process developed by CSC Research.
method will be

a

product

industry's varying needs.
Primary in the agricultural chemicals field, CSC is
a source

of supply for technical-grade

chloride and for the

military use. The first commercial

as

Valuable in the treatment of shock due to burns, hem¬

key forms—anhydrous ammonia, nitrogen, solutions,

also

well

orrhage, surgical procedures or other trauma, Expandex

source

"custom-sized" to the

new

as

plant in the U. S. was placed In operation by CSC at
Terre Haute in June, 1952.

of nitrogen in its three

leading basic

The yield of this advanced

free

that

nitrogen as before and that CSC

fun^nieptal

purposes of our

means

and ammonium nitrate.

clusive

available for civilians

Expandex, CSC's dextran plasma volume expander, is
being produced in such quantity that it is available

now

investing public. In this way two
capitalistic economy are served.
These funds are used to create

now

N at Dixie

The $20,000,000 expansion program now nearing com*

we

without these markets.

-

Expandex

auction markets, few people

fully appreciate the tremendous
importance of our so-called overthe-counter markets. Yet, in my
opinion, the gigantic industrial
growth our nation has enjoyed

new

benzene hexanitroparaffin insecticide Dilan®.

is

clinically effective and safe. It does not interfere with
blood typing procedures or cross matching. It does not
carry

and, therefore, does not transmit the virus of

hepatitis. In solution, and without requiring refrigera¬
tion, it is ready for immediate use.
In the medical and
a

pharmaceutical fields, CSC is also

major producer of bacitracin and penicillin and

binations of these antibiotics as well

as

com¬

other pharma¬

ceutical specialties.

add

legitimate business profits to their
other sources of income.
In

addition,

the

over-the-

counter market provides the pub¬
lic
trading
medium
for some

Timetable for

5,400 corporate stocks. In com¬
parison, the stock exchanges,
while dealing in stocks having a
substantially larger aggregate dol¬
lar value, trade in only some 3,000

"catching"

new csc

more

CH3OH J

...

product

"fed" to pigs

Bacigro,

methanol

on the delivery schedule than ever before. A
major supplier of methanol for many years, CSC will

the

such issues.

be

the hog raiser

Because of the basic differences
In the character and purposes of

output of formaldehyde at its plant at Agnew, California.

our two organized securities mar¬
kets it is clear beyond doubt that

they

will

always

Neither

America.

co-exist

market

of the

largest producers in the world in 1953.

In addition to this

expansion, CSC has stepped up the

by ear!

antibiotic growth pellet, was Introduced to
1952 fall crop of baby porke'rS. Implanted just un¬

The CSC 1953 production timetable puts much more

one

new

der the skin behind the ear of new-born

method of

with

an

entirely

getting sucklings off to

CSC is not

only

a

pigs, it provides

practical, low-cost

new,

fast start in life.

a

primary producer of bacitracin and

Volume production continues, of course, in the fields

penicillin, both of which are used in animal feed sup¬

of fermentation alcohols, nitroparaffins, and riboflavin.

plements, but also is basic in vitamin feed supplements.

increased

sold:

in

could

perform the special functions of
the other. The financial facts of
life require that both continue
with vigor and integrity to serve
,

.

the American public.
be preserved.

Both should

A few years ago, when Senator
first
introduced the bill

Frear

which would extend certain

pro¬

anti-freeze sales in

visions of the Securities Exchange
Act of

1934, to corporations hav¬
ing at least $3 millions in assets
and
300
security holders, and
which do not have securities listed
national

on

stock

many securities
the
future
of

market.;
•

-

exchanges,

dealers feared for
the

negotiated

>

Favors Frear Bill

I favor the Frear Bill, because.
I- believe/ in further .curbing

opportunities for abuse of




the
trust

the millionth barrel of

key markets

Intensive promotion focused on selected cold-weather

The

cities increased sales in

distilleries in

key-market areas of both PEAK®

ethylene glycol and Nor'way® methanol anti-freezes.
more

and

more

by motorists who want de¬

pendable winter protection. That's the trend, too, with

whiskey

1,000,000th barrel of whiskey, produced at
April of 1948,

was

last fall and delivered to one of

Unexcelled in its class, each of these anti-freezes is
called for

CSC ranks high in the

our

withdrawn from bond

our

customers.

industries a

preferred source
well as top-grade
we'offer distillers and

of bulk whiskies of fine quality,
a$(
neutral spirits. At the same time,

Nor'way. Radiator Products and other automotive

rectifiers excellent facilities for storing their production

specialties which make

in

COMMERCIAL

neces¬

these
are

a

high
unique

Such development will demand with no
intrinsic value, the prop¬
healthy securities industry. To¬ erty values they represent are at
porate enterprises.
day's combination of government best difficult for the average per¬
regulation and self regulation has, son to analyze and appraise. Ordi¬
Mutual Problems of SEC and
in general, produced such an in¬
nary
investors know that they
Securities Dealers,
dustry — sound, reliable and must rely upon the judgment
As we look to the future, what worthy of public confidence. But and
integrity of the dealers with
are some of the mutual problems
those conditions will not main¬ whom
they trade. With almost
faced by the Securities and Ex- tain themselves automatically The
every other kind of property they
change Commission and securities high legal and ethical business buy, real or personal, they can
dealers? Over the past 20 years standards prevailing in the securi¬
Continued on page 43
ties field today can be perpetiiwe have witnessed, and I believe

of share

bitch out the window."
Let

41r

up

the complete line.

SOLVENTS

CORPORATION,

our

bonded warehouses in Terre Haute.
T

lto miiish

tvi., niw

r

imk

r*"-'

-

it, n. t.

V

-

The Commercial and Financial

Chronicle

Thursday, January 22, 1953

...

(322)

rather

40

Continued from page

This combination of

figures in the year to come.

1952

busi¬

successful year for the banking

factors points to a

of

of optimism which
We. do not expect
any political or economic miracles to increase our sales
or to lower our costs or taxes forth¬
with, or perhaps even at all during
1953.
We do not expect increased
profits to flow from a changed
Administration in Washington. Our
optimism stems, rather, from a feel¬
ing that the security of our future
accompanied by the first real feeling
have enjoyed for many years.

'

Let

increased

the

prior year.

of the

telephone continues

To

year.

the

Companies
As

addition

In

expansion

the

to

of

the

that

feel

We

growth alone would increase
These gains

"

available.

F. 'Craig

Cleo

r

'

*

*

i,

proportion of economists, busi¬
officials are predicting a
prosperous
year.
This conclusion is predicated upon
sustained industrial production at high levels, moderate
increase in consumer, buying, resi¬
and

•

construction

much

be

plant

smaller,

which

expenditures

which

equipment

and

will

sarily spell deflation or a depression.
we do have reason to expect a
sounder approach to the problem of

increase and the

to

the

people need

ernment

stable
In

few

for

and

a

household

wide

'

top those of 1952.

least

tion

is

income

as

,i

gas

of

observers

giving.
might
*

for 1953 to be

I

me

shall

erroneous.

cause

an

estimate

Such factors are;
"

feet

duced

in

top-heavy,

and installment credit is also at*
"Only farm mortgage debt has failed to keep
«P with this unprecedented expansion of credit.
Ex¬
perience teaches that great bursts of credit expansion,
such

as

cursors

and
to

this country has experienced, are
usually pre¬
While the United States government

of trouble.

private credit agencies have it within their

prevent further creation of

strengthen that, which is

now

power

credit and gradually

to

outstanding, there is nb

certainty that this will be done.
(2) Weakness in Commodity Prices—After sharp ad¬
in the prices of the great international staples,
followed

the




attack

in

Korea,

there

.

over

has

been

of

and

'

....

promise to remain

At

gas

the

was

pro¬

;

competition with business and industry
slight boost in interest rates, now already

expected, thus insuring to banking, with the
increase in bank deposits, a year

tural

gas

increase

20,028,000

from

sales of

gas

were

Hugh

CuthiSell

H.

were

receiving

na¬

This was an
was

due pri¬

6% gain Aver 1951: Rev¬
$2,455,022,000-in 1952, a

gain of 10.2% over the previous year. Expenditures to
meet the industry's expansion were $1.2 billion.

reins

of

our

government,
;

to.

*

be

^,

business climate in 1953 ahdytne

'

Paul L. Davics

important single factor in the sales growth

;

,

<

busjness; year. Construction', both
industrial and residential, should cbntinue at ^ .signifi¬
cant level.
Labor saving equipment for :industry and
agriculture is attracting increased interest-and atten¬
tion. Other contributing factors for high level produc¬
tion include substantial defense production on those pro¬
grams already committed; and a strong demand for" con¬
generally satisfactory

sumer items

based on almost full

envelopes, and

employment, fat pay

increased personal savings.

profit margins will probably
industry has been forced to absorb
increases in labor and material costs in "the face of con¬
stant and ever declining price levels. Little improve¬
The

trend of low level

continue,

because

ment, if any, can be
controls

are

anticipated in price levels, even if
because industry is confronted

removed,

Cnntimipd
The most

clear

settled: pertain tjd,-the
size of the defense budget, -the future ;

a

'

T°tal customers of all gas utility companies at the

end of 1952 were 27,019,000, a

exceedingly

that immediately follow.
-1r
.Despite
the
uncertainties men- f ;
tioned, Ivarious factors tend to indi¬
cate that 1953 holds promise of being

marily to the shift to natural gas operations in the east.
M

business conditions

years

service at the end of the year.
over 1951.
This change

of 16.2%

the

tions

our

begining of

customers

"":V-:

DAVIES

President, Food Machinery and Chemical Corp.

Treasury Department, and Fedekhl. ^
price and wage controls. The deci- '
sions reached will directly influence ;1*

.

than

-•

,

policy of our European aid program,
the monetary and tax policies of four

the

More

at

to move into the money market for, funds "to
When this happens and the govern¬

major decisions will have to be made
concerning the entire concept of the
Korean War. Other paramount ciues-

the next five years.

natural

1951.

much

of'the anticipated

over

-

American Gas Association'v estimated ' that
proved recoverable reserves in the nation's natural gas
fields totaled 193.8 trillion cubic feet.
*
'
1952,

enues

vances

which

..

operation will point up,
I
believe, just how dominant the
role of this source of energy has
become.]
1
:
x
A
record peak of eight trillion
cubic

maximum.
.

'.

great

the

"crystal" ball"—one much less clouded than mine—be .cause obviops uncertainties confront anyone attempting
to
make
business -"guesstimates.":
r. U
,
With .a new Administration taking V

expansion

records,

finitely

~

opened up new mar--

area

highs, commercial loans have far exceeded all. previous
de¬

high

PAUL L

.

are

-

_

are

pf growth and:'increased .earnings.

natural gas

judgment

loans on'urban real estate

7.

too

and

incomes,

deficit.

may be

up,
■aict

would; duplicate,
the pattern established in other area's.*!
of the country during the growth of ?|
the
natural gas industry.
A brief
look ^at
the magniture of today's

;

(1) Excessive Credit—At the present time the Federal
peak, state and local debts are at new'

mortgage

the

for money, a

''

for; gas. / The

This,

debt is almost at

/

•

*

all-time

ment renews its

gas

fields of the country to a

substantial

emphasize

optimistic

*

development, and
expansion of *these markets by the
eastern gas utilities is expected to be

mis¬

some
-

many

consumer

being moder¬

those factors which in my

Cumberland

W. W.

causes

Hence

of

*kets

ately lower. >
In general, I agree with this fore¬
also expect corporate earnings to rise. Yet the very unanimity

Gas Company

an

July, bank deposits will very likely

Anyone daring enough to forecast
1953 should have access to an

-

at

level unless the new Administra¬
in Washington reduces the present budget appro¬

cover

.

Natural gas became

tion

appliances

cast and

were

at their present

be obliged

,

V

industry will continue

*'

sound,

.a

priations for the defense program. If no major reductions
made in the budget, the Treasury Department will

the dominant factor in-the opera¬
utilities of the Middle Atlantic- and
New England states-in the year 1952.,
The construction of new pipelines from the natural

for

will

range

forecast

loans

about

are

(

-

of soft goods is
to be greater. Only farnF

expected

<

deposits

cividuFl
talked '"of tax cut in

Bank

bring

high during the past year. With the
expected new high this year -in in-

Davie*

W.

H.

and

economy.

the

banking field, there are a
bright prospects in the outlook
the
year
ahead.
Commercial

bank

the telephone

want in the com-

and

infla¬

tionary policies of the Federal gov¬

programs.

keeping

hope

moderate the present unsound

service

improve

and

President, The Brooklyn Union

not

and continued or increased
for defense. Production of

automobiles,

With the new, more
Administration, comes
of effective measures to

today.

people

for
-

year,

outlays

a year ago,

But

HUGH H. CUTHRELL

.

"roughly parallel those of the previ¬
ous

DAVIES

running high in the first weeks of 1953.

keeping on with heavy

are

war

communications.

good

-

dential

W.

Contrary to the belief of many both before and after
election, a Republican Administration does not neces7

that nothing is so important as the country's
defense, and nothing js more important ;to defense than

government

•

are

belief,

,

As 1953 opens, a large

nessmen

set records volume-

Syracuse, N. Y.

^

get the promptest possible attention. The/ people of
Bell System are deeply conscious that this is their
first responsibility.. They believe, and are acting on their
c.

to

Compared with the fear and uncertainty of

I-want! to emphasize that the telephone heeds of the

City

■

continue

HARRY

the

'

,

will

Chairman of the Board, The Syracuse Trust Co.,

to

*

business

gas

our

military services and of defense

.

Partner, Ladenburg, Thalinann & Co., New York

as

more

inflation, which is one of the great¬
est threats to
our
nation and its

munities where they operate. ;

,

W.W.CUMBERLAND
'

We,

securing

the

'

prosperous.

or

capacity is made
well as others have a keen interest
gas for there is every assurance that

wise in the years ahead.

companies under the necessity of ob¬
taining increases in rates.
This is
essential to their being able to pro-,
vide the kind and amount of service

be pleasant and

coming year will

in

.

large

■

cannot be realized by Brooklyn Union

other eastern utilities unless additional

The tremendous rises in costs since*
the

1953, all
substantial industrial

'

sales volume-wise by

our

one-third.

physical facilities grow, we
are
continually putting more new
devices and equipments to work in.
the. overall telephone system.
This
is
being done in accordance with
long-range plans which, among other
things,
anticipate
that
ultimately
telephone users will be able to dial
their own long distance calls.

"commercial center" activities are planned for

operations already under way.

are

construction

construction in the com¬

several

demands

public

meet

all

further

construction will
it may be ready

and

of

ing installations and over the next five years we are
planning on a total of 55,000 new installations.
This

System Companies look ahead to another very busy

Bell

in the area.

substantial

is

area

possible to
view.
For

now

point

conservative

Moor, near Wilmington, by the addition of a .third unit
with a capacity of 78,000 kw. The engineering work on

service

In

President, American Telephone & Telegraph Company

belief in the future; is reflected in its
decision to increase its main generating station at Edge

The number of homes under

it is

gas
new

opportunities through aggressive promotion.
1953 Brooklyn Union plans to add 10,000 new heat¬

new

CRAIG

F.

a

compete

now

But I intend to watch closely those
which have been enumerated.
CLEO

Use

is well advanced and actual
begin in February 1953 in order that
for service in the late fall of 1954.

can

its high for the year.
factors of danger

natural

with

In addition,

anticipations

This company's

pany's

of 1953.

many

*

this plant

we

oil.

^

enjoyed an increase in
and the load on its- electric sys¬

inquiries suggest a growing interest

of

markets

more effectively with
there has opened up a large
potential off-peak market we could not enter before.
It is the company's intention to take advantage of these

that the Dow-Jones industrial average has not yet seen

approximately 33,000 horsepower over
Increases in gas sales were over 6%.
All indications point to a continuation of the 1952 trends
well into and possibly through 1953. The new business
on the books will contribute substantially, and numerous
tem

advent

old

coal and

repeat that I expect 1953 to be favorable and

me

the

at

example,

prosperity,

company

of about 11%,

revenue

>

this

1952

With

look

other parts of the world. This de¬
terioration has largely resulted from price declines in
the
great international staples.
Recently indications
have appeared of stabilization or even improvement,
and we may hope that the worst has beep seen. But the
danger still remains. In addition, this world is not at
peace, whereas peace is essential for true and sustained

Cooper

Stuart

be considered fairly typical of what hap¬
manufactured gas utility when it changes over

may

a

to natural gas.

(5) Foreign Difficulties—While prosperity has been
pervasive in the United States during 1952, there have
been rather alarming evidences of deterioration in the
economies of

to

pens

ously, inflation solves no problems.

Philadelphia.

near

industry

This philosophy is formalized in the so^Employment Act, and in the habit of turning
immediately to government for the solution of any eco¬
nomic problem, whether business or personal. Govern¬
ment has only one remedy, and this is inflation. Obvi¬

be restored.
The Delaware Power & Light Company and its asso¬
ciated companies operating throughout the Delmarva
Peninsula—that is, Eastern Shore Delaware, Maryland
and Virginia — has never been in better condition to
capitalize on such optimism. Its gas and electric facili¬
ties devoted to the service of the public are adequate
and a large
part are new, nearly two-thirds of its
electric plants and system having been built since 1943.
Its territory, which is highly productive, and its industries, which are widely diversified, presently enjoy the
spotlight of public interest through their relation to the
Delaware River Valley whose industry is being, vastly
stimulated by United States Steel's new plant on the
During

be

hand

prosperity.

places will

River

may

economy

called Full

interpretations,
that the tax-free
^government competition with pri¬
vate business will be curtailed, that
the trend toward socialism will be
slowed up,
and that integrity in
high

economic pincers move¬

Dependence on Government—Both the business
community and the general population have gradually
accepted the fallacy that government is responsible for

prejudiced

of

than

rather

an

which the

in

(4)

again

laws

Possibly
place,

ting and industrial congestion before the close

depend more upon our
own
capabilities than upon the dic¬
tates and allotments of bureaucracy.
It stems from definite indications
ihat we will return to a government
of

taking

(3) Inventories—During

we

will

was the continued swing to gas for home
Although there was a general slump i1n the
sale of most durable goods during 1952, an exception
to the general trend was the fact that shipments of gas
house heating appliances totaled more than 700,000, an
increase of 85,000 over 1951. Important gains were also
made in commercial and industrial gas equipment.
Brooklyn Union as a new member of the natural gas

industry

heating.

1952 inventories were un¬
usually stable. They declined slightly for a few months
but there was also a slight rising tendency during the
later months.
In any case, aggregate inventories are
probably $10 billion too high for safety and comfort.
If further increases occur, they might cause price cut¬

is

year

new

a

of the

in general

squeezed between high consumer prices on the one
and declining raw material prices on the other.

Light Company

activities

the

into

entrance

is

ment

STUART COOPER

credit.

in

crease
!

Our

and

have

ness.

President, Delaware Power &

such prices,

in

weakness

acute

almost receded to the pre-Korean level.
Wholesale prices have also fallen moderately during the
past year. Prices of farm products are definitely weak.
These declines have occurred despite an enormous in¬
they

nrt

Ad

Volume 177

Number 5188

The Commercial and Financial Chronicle

...

(323)

/

(

,

Continued

Some

* ■

■

,

from

H

•

,

41

page

values for themselves. Such

safe¬

exist in this busi¬
intangible, representa¬

guards do not

tive character of securities makes
them peculiarly
fraudulent
the

susceptible to the
in

tactics

sales

irresponsible

which

willing

are

indulge. We must

to

make it

never

to do so. The basic

easy for them

philosophy which has consistently
permeated

Commission's

the

ad¬

ministration of its statutes is that

should do

we

litate

everything to faci¬

the activities

curities

ment.

of honest

se¬

dealers,

and everything
possible to exclude from the in¬

for

the

is any

being

range

,

•

community should be
publish quotations for

to

urged
the

more

begin With,
investors in prominent and active securities at
many regions of the Country have frequent intervals. When they are
narrowed I am corivined
extremely .limited access/to cur- made to understand the value of
creased public conifdence will be
Teht quotations.
Perhaps this this public; service, I feel sure
highly rewarding. •
could
be
promptly -remedied if you will receive their cooperation.
wide

as

physically examine and judge the

The

would represent a great improve¬

believe that there

not

justification

Aspects of

Negotiated Markets

ness.

points for purposes of negotiation,
I do

is.

it

as

the

If

benefits

determined

publicity

result

can

effort

given

to

To

gap is
that in¬

Even greater public and

try

indus¬

from

the: industry were to begin furn¬

ishing

all
banking • institutions
extend the with bi-weekly or weekly quota¬
the
market tion sheets. In many smaller com¬

to
securities

a

I am aware
stacles in the

that

.

these
am

are

ob¬

path of

achieving
objectives. But I

desirable

also

there

convinced

that they

The

securities industry i$

one,

in many

And

it

actions.

the

are

Obviously, the over-the- business.

counter

his

banks

market

degree

of

cannot

publicity

achieve

for

be

the

quotation problem

addition every

In

made

to

effort should

broaden

the

dissemi¬

majority of its Securities. But far

nation of such quotations in news¬

short of this is still

papers.

an

area

which

Leading papers in

every

ate and

wards will

important

inviting

you most

me

to

sincerely
dinner

your

art

contributions

and

prosperity

have

to be

SAN

FRANCISCO,

Emory A. Jackson
ated

of

with

Hill

is

not

the

San

Francisco

Stock

change.

only in the best

for. the honest dealers'
who make up the industry;. / .,.
While we can and do rightfully
pride ourselves in the
general
wholesomeness w h i c h1 pervades

the

securities

industry

should not close
fact

that

there

improvement.

There

sharpshooters

to

with and

now, /we

.

to the:

our jeyes

is "still

still

are

caught.

be

'Wlr

for

room

■

-

l,t-'

up

intend to be persist¬

we

ent.

There

the

securities

still

are

firms in

some

who

business

devoted exclusively to

are

peddling to

the

investing public low priced,
cheap securities with the knowl¬
edge that the corporations rephave

resented

*-

The

success,

little

line

chance! of
this

between

.

type of activity and outright fraud
is a fine one. If anyone steps over

;

that

line

will

take

and

discover

we

constantly

alert

and

wheh such

over

the

line

*

-;.y
-

-

■■

f!

-

ac¬

the

on

firms

intend

we

,

it, We

swift and effective

tion/ We..are

-

V.;

step
do

to

r*everything possible to 'put'them
out of business.

"But

we

have been

case

handicapped

in this Work by severe cUtsIn our

appropriations

-

which

i

staff

have

/that

this

.

at

hopeful,

are

fraud .scandal

gent

-

be

soon

its

ning

adverted

to

ur-

painfully ap7."/
' '"5*

I have several times this

;

Barber

however;

makes

necessity too

parent.

serious

Commis-

serious secUrl-

a

ties

-years

-

in

the

situation -will

rectified—before
7

recent

resulted

reductions

siott.\ We

/

in

the

eve¬

importance

*

and

virture

of. self

regulation in

the Securities industry. I
firm believer in this form

'

-

-

I

am

a

of iii-

dustry self-discipline. It is an excellent vehicle for the development and expression of that

;,of

sense

responsibility

which must be
t accepted by every business, group,
i. But there is one specific a anger

....

j itt such regulatory bodies tnat I
/should like

to

warn

against. No

5

securities orgariilzatibn should per-

;

mif any

i

bership to dominate it and reflect

one

segment.of its

mem-

| only that-viewpoints of that .par.-"
The .'attitudes, opin«7

v

*

■

/.ions and interests of all groups—
l the investment bankers, stock ex-

;

-

firms,, arid ^over-tne^counter dealers—should be- ful y
/ represented.
Unless this kind of
>

;t

public properly.

/ '< Let

me

lem

with

„

t

concerned

which
for

•

we

some

have

time.

-

/r'

'/

mention one final

7

probbeen

It

:

Fihdtng the right

Enterprise? Ray Barber does, because he
makes it work for him every day .of his life!

of labor

this field

in-:

'

7-

volves the publication of. .quota,;tibns for securities traded in the

owns

his

own

home..

'to the house where he was

.

for'your new plant ...the'right kind r

make; the task

sUrvey..to meet

easy

For further lriforrriafclon 7

,

right riext door
born J ;, /

.

^

■y

over-the-counter; markets. In

my

opinion considerable improvement
can
-

of

be made

both in

the

Like thousands of .other people in the,
.

>

-

/

-

1

farm.

quality

quotations and in their
availability to the general public.

,

Here, year in and year out, he's
watched the principle of American Enterprise
in action. Ray Barber knows you can't make

without first planting the.seed. He
knows it's what's put into a job that
a

Sees Spread in Bid and Asked

Prices
For

,

-

Too

Wide

in

Some

Cases

comes out. '

*

•'

Conceding that
represent merely




these
starting

We're

mighty proud of Ray Barber
because he's a typical example of the
'rind of people who live and

,

'&%TsZ

s ,<\

«

.

? ■

many

vestors.

prices

crop

determines what

securities traded in
the negotiated market the spread
between the publicly quoted bid
and asked prices is much too wide
to be of any real value
to in¬

.

Chessie Corridor, Ray has his own little

'

these

work in

Chesapeake and Ohio Railway
.

-

•

,

'

i

SERVING: VIRGINIA

•

.....

WEST VIRGINIA

•

KENTUCKY

'

& O's Center of

Opportunity.

*

by preparing a special PIN-POINT

your requirements

write The 'Chesapeake &, Ohio Railway,'Industrial Develop-; J
m'ent Department, Terminal Tower, Cleveland I. Ohio'
* ' '

Like his father and grandfather before him,
Ray's roots are deep in his own community.
He

spot

supply for:your operation can be a costly, Urne-cpm *;

sumtng Job Tor you-and your organization, let our expert* in

-;/* / Ray is the land of man who sticks on the
7 job a long time. He's Worked for Armco in
*' A
Ashland, Kentucky for twenty-two years.,

equality prevails the organization
7

/

yoiir eifiplqyfces\

understand the principles of American

v

7

l change

/.Will sefve neither itself nor/the

Ever wonder if

/

7 ticuiar group.

-

'

OHIO

*

INDIANA

*

MICHIGAN

affili¬
&

Co.,

Montgomery Street, member3

well,

as

»

Calif.—

now

Richards

public investors, but

of

the
our

Hill Richards Adds

always/ considered * this

interests

to

of

(Special to The Financial Chronicle)

dustry the dishonest dealers/! We
course

one.

essential

*

155

justify ybtiF efforts.

May I thank
for

immedi¬

your

careful attention. The re¬

certainly

good

a

great

a

efforts of groups like this it will
continue to flourish and make its

growth

the

is

ways

With the constant progressive

one.

nation.

munities

traded

^

giving hoe this opportunity
to
say a few words about an in¬
dustry of which I am very fond.

can

for

43
,

and

only be readily overcome. It is cer¬
over-the-counter.
^Probably no source of investment information, tainly in the mutual interest of
other single feature has done so and you would,by adopting this the
public and the industry that
much to popularize the nation's
procedure, render a very valuable
stock exchanges as the daily de¬ service to many public investors they be overcome, and promptly.
tailed newspaper reports of trans¬ and 1 undoubtedly
increase your I strongly urge you to give this

quotations

^

1-

• SOUTHERN

ONTARIO

t

Ex¬

AA

The Commercial and Financial Chronicle...

(324)

Continued

from

It appears that

42

page

competitive market conditions which make
to hold the line on prices and even reduce

with highly
it necessary

them in some instances.

,

*

profit margins prohibit industry from con¬

Since low

tinuing to grant increases in the current
of

;

.

upward spiral

represents the
greatest gain of any working force in our economy dur¬
ing the postwar period. Future gains can be realized
only through greater advances in productivity. Some
of the pressure of wage increases, however, may be
lessened through a pause in the inflationary spiral and
subsequent descent in commodity prices, bo£h of wqich
ent

tend

to

stabilize the cost of living and increase

•

purchasing power of the dollar.
year 1953 will mark the beginning of a period
when the management of industry will devote more at¬
The

,

tention

control

the

to

of

operating

and

costs

the

to

diversification of product lines.
A great amount of
'effort will be expended also in strengthening weak spots
in management

staffs. Training programs for developing

competent junior executives will receive special atten¬
tion. Product development and research expenditures,

continue at a high level. Another trend to
emphasis is the establishment of manu¬
facturing facilities abroad to serve the product require¬
ments of foreign markets.
These plants, sponsored by
U. S. industry, will help retain certain world export mar¬
kets which we have been priced out of by our present
high wage levels.
will

too,

receive greater

As I stated
a

somewhat

earlier, these predictions are gleaned from
"crystal ball." Some may come to

clouded

others not.

But 1953 should not be viewed with
should conscientious planning be accepted
lightly. I am confident, though, that the period we
are
entering, in spite of problems to come, will offer
opportunities, as always, for well-managed companies to
lay the foundation for healthy, progressive growth both
pass,

alarm,

in product lines and in

earnings.

CHARLES

H.

forces at work in order to

and it

a

potential significance that may
attach to the change in National Ad¬
ministration.
cal

A new approach to fis¬

mental

nature, both domestically and

internationally, and

have

we

reason

to believe that such

ments

through

and

some

ularly

restored

confidence

optimism could be partic¬
to the economic

beneficial

system and the
of the country.
At

every

develop¬

this

time

long-term

last

year

it

interest
was

ap¬

parent that industry would be likely
to lean more on the
banking system
than

Charles H. Diefendorf

had

been

the

in

case

the

last

decade or two, reflecting the cumu¬
lative effects of the inflation and the demands inherent

period of active business. This has been evidenced
by an increase in commercial bank loans of about $1*6
a

billion
ments

above the

incident

1951

to

the

year-end level.
steel

strike

The

maladjust¬

unquestionably

buyer's

market, with the collateral effects

on

the money markets.

It appears now that credit will still be in
demand for

the

greater part of

the

forces

is

the

is

that

during the

well

1953

inflation

likelihood

checked

It

of

to

note

but, with the possibility that
be less predominant, there

will
the

rise

in

loan

volume

will

and expansion

the

latter

part

of

barring the period affected by the steel strike, the Fed¬
eral

Reserve Board

remained at
area

Index of Industrial Production has
rather constant level around the 220-225

a

until

recently, when it moved up to 230. This is
particularly interesting for it shows that with the power¬

ful stimulation of

armament spending, major
plant ex¬
pansion, tremendous rise in credit
outstanding and non¬
public debt and the inflation bias of governmental poli¬
cies, the economy has ceased to expand as measured
by
this index of industrial activity.

This

could

be

poses and the
population.

The chemical

industry, in the

been

rapidly for several
of both emergency
defense and civilian requirements.
Management of The Dow Chemical
care

the

business

1953

needs

Projected 1954 expenditures

of somewhat different character than that
have known in recent years where both cur¬
and

backlogs have had to be met, plus the
building of major additional production capacities. It
should not,
therefore, be surprising if the level of indus¬
trial activity should turn down to
some extent before
the end of 1953,
dependent, of course, on the interna¬




armament

ending May

year

are

part of a long-range

which has seen an outlay of $441
six-year period which ended May 31,

the

1952.

July Dow Chemical sold $100 million of subor¬
convertible

debentures.

This

in

addition

to

in¬

financing is contemplated at this time.

ending May 31, 1953, than in fiscal 1952 when the

company

produced and sold products totaling about $407

million.

spending.

could
to

fiscal

earnings

1953

company

as

in

expected to be about the

are

same

in

1952, while present indications

will show

are the
somewhat higher net income after

a

taxes in 1953 than in 1952.

have

a

his

potential of television

as

a

to

of

some

teaching aid.

most of

by science.

will

be used in
educating the entire viewing Dublic,
special interest groups and enrolled students for"
credit

Each of

these classifications, general and
specific, re¬
quire programming designed and produced with
special
techniques to attain their objectives.
tional groups
this end.

to

all

value, in the varied
industry, science, research and in the national
effort, television through its many applications
gives daily increasing assurance of public service
impor¬
of

national life and safety.
non-broadcast television is so
completely
versatile, has so many facets, as yet unexplored, that no
our

Actually,

one

man

In

can

1953

accurately foresee all

products, continues to recognize the need for strong sales
programs as a means of developing markets for an in¬
creased number and quantity of products.
The chemical industry, and in fact all industry, is not
without its problems as the business year starts. Para¬
mount among these are maintenance of adequate net
income in the face of high taxes, particularly the Ex¬
Profits Tax, and general governmental intervention

including

wage

and

price

controls.

that these problems

There

may

be

significant answer to the earnings problem, Dow
management believes, lies in rigid internal economy.
Some time ago the company went on record as oppos¬
ing lavish corporate spending as a means of cutting
down tax outlays.
Management's thinking on this is
1953 opens.
ALLEN

DU

B.

when
Americans

With the realease of the "freeze"

in

1952

the

station

new

con¬

million

homes,

receivers

and

the air.

more

in

than

Indications

American

115

are

stations

that

some

additional stations will go on the
air in 1953 and that the manufactur¬

75

ing segment of the industry will produe upwards of 61/2 million receiving
sets.

During the past six
has fashioned

a

years

brilliant

achievement.

While

television

chronology

the

medium

largely thought of as an enter¬
tainment vehicle, television also has

was

Dr. Allen B. Du Mont

taken

a

serious

and

constructive

view of its responsibilities in public
service

to the American

public.
1953, the industry is stimulated and in¬
spired to accept an even greater challenge to its public
service opportunity. It's potential is limited
only by the
imagination and skill of those using it,

Looking to

television's

periphery

broaden the nation's horizons

in 1953, it will
nothing else ever could.

expands
as

serve

a

public through a high
our homes
daily. In
on

1953

as

the year

fashion.

1953 will be

remembered

as

the

strong, psychological bond between

new,

cemented.

was

In

opinion, the outlook for general business and
during 1953, should compare favorably with
that for 1952—possibly somewhat better
during the first
six months than during the last six
months of the year.
my

net income

the

absence

of

material

a

largement of the present
not

look

en¬

I do
business

war,

for

any
serious
depression in the United States dur¬
ing the next three or four years. A

recession

15%

in

could

the

56.

in

to

a

take

place

I think such

reduction

some

cost

of

living and

to

during
a

in

reces¬

prices,

some

in¬

unemployment, would
healthy. Such conditions

be

should

business of from 5%
well

or

crease

industry reached the
climax of six years of development in the postwar era.
Television has proved itself to be the most dynamic,
fastest-growing industry in Ameri¬
can history.
At this writing there are more than

educated

ALEXANDER E. DUNCAN

in

television

20

the

Chairman of the Board, Commercial Credit
Company

really
on

a

sion, with

MONT

and

Through television,
year

1954-55

President, Allen B. Du Mont Laboratories, Inc.

struction

in

uses

Century invention in communications be¬
to help mold the thinking of the American
people

In

One

as

its

programming coming into

in unprecedented

alleviated in time.

unchanged

of

20 years we will be able to look back

gan

Chemical, with its broad foundation of basic in¬

indications, however,

of

television, in all of its phases, will

better enlightened

dustrial chemicals supplied to manufacturers of finished

business,

Already educa¬
working toward

are

defense

when the 20th

being found for old line prod¬

ucts.
Dow

nation

future.

expansion program, the company is
diversify its line of products. Through

new uses are

the

over

Aside from its over-all educational

fields

fields, and

'As

in

Classroom television will be able to
embrace the ob¬

level

in

accomplished with television

jectives of educating adult school
classes, college or uni¬
versity classes, secondary school classes, and in-service
teacher training classes.
Public educational television

result of its

continuing

are

into

their opportunity
to utilize and make a
place for this—the most powerful
means of communication
yet devised

steadily increasing research and development, new prod¬
ucts are continuously being introduced to commercial

cess

insight

bring the idea of the League of Nations

unlimited

tance in

Pre-tax

As

intimate

more

courses.

Last

year

a

They will begin to make the

Doan

program

over

of

on

I.

31,! 1953, and depending upon business conditions, may
spend another $100 million for expansion in fiscal 1954.

on

tional situation and its effect

the
Leland

equipment will total approximately
$100 million during the current fiscal

million

having

During 1953 educators will begin to realize

long-range outlook as well.
The
estimates that its capital
expenditures
for
new
plant
and

expansion

public's

towards

the American people!

the

but

.

crusade

company

civilian demands.

rent

outlook

an

Wilson

Company is optimistic not only about

special significance when weighed
of the immense
backlog built
in the economically stagnant 1933-39 period and dur¬
ing the war has been satisfied, and in the light of the
fact that to an
increasing extent there seems to be de¬
veloping adequate and perhaps even excess productive
capacity in many industries as measured by current

we

problems.

our

20, in its first major example of public service
in 1953, television will enable mdre
people to view the
inauguration of President-elect Eisenhower than the total
population of the nation in 1900. More
people will have

part in bringing out the
record-breaking 61 million vote,
television has done more to stimulate
interest in our
government than any other medium in our
history.
What Abrham Lincoln could have
done with television
during the crisis of the Civil War!
What Woodrow

van¬

building

to take

years

up

country is

growing

a

guard of general expansion, has also

with the fact that much

which

of

needs

of

Present projections forecast a continued
high level of
business activity well into
1953, but an economy that is
producing to meet primarily the current needs of the

of

Television

thereby help¬
prejudice that

governmental workings, sharpened
by video's coverage
of the political conventions and
the campaign, already
has led to discussions for the
televising of sessions of
Congress and various state legislatures. Aside
from its

be

1950,

of the suspicion and

at the heart of
many

attitude

will continue at high

levels during 1953 as companies add
to
their capacity for defense pur¬

DR.
since

some

During 1953 television will be a prime instrument in
bringing government closer to the people. The

year.

that

ing to eliminate

Industry in general has been ex¬
panding steadily the past few years,

af¬

fected the seasonal pattern and it also
delayed the tran¬
sition of many industries from a seller's to a

fuller

opportunity to view this year's ceremony in Wash¬
ington, D. C., than in all the other previous
inaugurations
combined.
*

and

monetary policy could well
produce changes of a very funda¬

a

As business enters 1953, it can look forward confi¬
dently to continuing strong demand for goods and serv¬
ices, with production and employment holding up to
meet that demand throughout the year.

This is especially so in view

of the

American people

On Jan.

Management estimates that if present dollar volume
continues, sales will run 5 to 10% higher for the fiscal

appraise the various
perspective on the

develop

overall economic situation.

in

DOAN

I.

President, The Dow Chemical Company

new

The postwar boom has been of long duration
therefore is of particular interest to

the

Combining the visual with the auditory, video's
variety and intensity of impact will prove it to be the

are

LELAND

ternally generated cash will probably be adequate for
financing the projected expansion for fiscal 1954. No

DIEFENDORF

to

most potent force the world has
ever seen.
will help raise the nation's mental
levels,

dinate

President, The Marine Trust Company of
Western New York, Buffalo, N. Y.

offer

planning suggests a high level of industrial activ¬
ity and national income and this result is likely to be
by a more friendly and understanding envi¬
ronment for our free enterprise system, with benefits
to the country's whole economic well-being.

nor

too

will

range

'

the

Television

furthered

plateau of labor compensation

high

would

to

authentic drama of American life in all of its
power and

view our economic situation. The pres¬

tions realistically

as

color.

unrest and strikes unless the leaders

r

basis for caution

a

the level of business activity as the year matures, long

demands, 1953 may become a period of labor
of labor organiza¬

wage

while there is

Thursday, January 22, 1953

help

more

our

country

normal

and

get

back

sound

eco¬

nomic basis and

bring about a much
increased efficiency of em¬

needed

ployes.

During

the

past few years there
large increase in popula¬
throughout the United States,

has been

tion

increase
and

Alexander E. Duncan

a

in

other

the

number of

as

well

as

a

great

retirement

annuity, old-age
pension plans, social security, unemployment

and

hospitalization insurance. These conditions have
greatly enlarged the consumer purchasing power in the
United States, wihch should continue to increase
and
thereby have much to do with preventing any serious
business depression.
To my mind, one

f-»i

the greatest

of

business problems

our

economy has to face during the next few years is
the tariff question.
For several years our country has
been exporting to other industrial

foreign countries our
improved machinery, either by loans,
gifts or otherwise, along with the "know-how"
people
to operate it. These countries have a much
lower wage
most modern

scale

and

trained
much

and

standard

should

be

of

living

able

to

and

when

produce

employes are
competing articles

cheaper than they

States.

prevent

The
our

can be produced in the United
question then comes up (a) how can v >
domestic market from being flooded by

Continued

on

page

4$

Number 5188... The. ^Commercial,and Financial Chronicle

Volume 177

this program are the construction
of
the
hew
Justin R.
Whiting

Detroit Stock Exch.

steam-electric generating plant on
Lake Erie with two units of 85,-

Elects New Officers

(325)

-The

company's operating reve¬
$77,217,299 for the year 1947 to $134,186,-

689

for the

twelve

Stock

transmission

lines, of approxi¬

on

its

common

kilowatts at the John C. Weadock

steam-electric plant near Bay City,

have been paid quarterly and a
quarterly dividend of 50 cents has

Michigan.

been

Co.

operates

dividends

of

50

declared

cents

Feb.

payable

20,

1953 to stockholders of record Feb.

teenth Avenue.

tiac, Royal Oak and Saginaw.

BOSTON,

staff of

Denault

Nowell

Mass.

is

—

connected

now

;

"

"

,

With Keller & Co.
(Special to The Financial Chronicle)

Talbot

BOSTON,

(Special to The Financial Chronicle)

Gordon

Mass.

has

.—

Sidney

become

associated

have

fornia

Street.

&

Helser

Stendal

Talbot,- 519
Mr.

Co.

was

Bruce
,

In

the

has

Joins John G. Sessler

J.
Henry
past, Mr.

(Special

Co.,

-

•

in

has

Portland,

G.

i.

,

to

The

Financial

Chronicle)

affiliated

become

Sessler &

Vic e-President:

R.

C;

Lawrence

H.

O'Donnell

&

with John

Square.

•

•

"

\

>x"* t l"V /

Company.
Treasurer:
Winckler
ment

Ralph Rotsted, F. J.
Announce¬

Company.

also made cf the reap¬

was

pointment

J.

Fred

of

Oppat

as

More than

Secretary and Examiner.

2,000

Governors elected to the Board
for

three-year term

a

are:

Edward

T.

Bennett, Jr., Bennett, Smith &
Company; Sidney J. Forsyth,
Baker, Simonds & Company, and
Warren

T.

Olson, Wm. C. Roney

& Company.

Armour

products

Today, Armour products
as

are

now

helping

To

Other Governors making up the
Board
of

O'Donnell

Seabourn

R.

&

non-food

Company,

Livingstone of S. R.

industry!

vast

Frank

E.

of Good-

Voorheis

Charles

Parcel1 s

A.

George

pany,

&

Not
terias

of

Straus, Blosser & McDowell and
Ralph Rotsted of F. J. Winckler

and

Company, whose terms expire in
1955.

Edward

C.

P.

Davis

are a

factor in

as

many

industries, just
many homes.

mighty important part in

few of the industries which benefit from our
we

could start with cosmetics and end up

resurfacing. In between,

enterprises

to

Com¬

McDowell

A.

a

a

could mention such

we

rubber, explosives, furniture, plastics, phar¬

maceuticals, paints, oil recovery and textiles.

body & Company whose terms ex¬
pire in 1954; Charles Errol Exley
of

just

play

products,

with road

Livingstone, Crouse & Company,
and

name

Dilworth

Lawrerce H.

are

C.

R.

Armour foods

and

he overlooked, of course, are

the

many

plant cafe¬

throughout the country which operate more smoothly

efficiently because of Armour foods—and the dependabil¬

entire organization. We prepare and package many

ity of

our

foods

especially suited for cafeterias serving factories and large

'

William

A.

Walker

of

Dickinson,

Wright, Davis, McKean and Cudlip will continue as Counsel and

business

Edwin Bower of White, Bower &
Prevo will continue as Auditor.

Elected to the

mittee

for

Nominating Com¬

1953

are:

-

O'Donnell

&

Company;

Andrew

C. Reid, Reid, Hiebie &
and

Wynn

F,

Simonds & Co.

The range

Samuel

Hague, Smith, Hague & Company;
Charles A. Kreidler, Floor Trader
Member, Detroit Stock Exchange; Raymond
C.
O'Donnell, R. Ci
Company,:
Wakeman, Baker,

%
•

Power Slk,

Consumers Power Co.

of

quickly and at low cost.

products is

our

an

outgrowth of

possible; The list of
still

growing.

If you

\ and

we

have

our

a

^y:*>- •••:.-•

experience.

particular problem that

^ !

*

•

'

is offer-

•the right to subscribe for 617,669

no par common shares
share,, on the basis of
share for each ten shares

per

;one new

President, Armour and

jheld of record Jan. 15,| 1953. Sub^-

!

scription rights expire at 3:30 p.m.
(EST) on Jan. 30, 1953. Morgan
Stanley & Co. heads a nationwide

| group of investment firms which
is underwriting the

offering. The

proceeds will be used to help fi¬

v

the, company's

construction.
which is expected to cost
aboqt $115.500,0001 for/ the years
1952 and 1953..' Chief projects in

nance
,

program




{<•..!• I i '
u

85-year-old
whenever

,

»

might help you
products/facilities

we

invite you to call on our many

| additional
$35

an

products for industry is long—and
••

.

ling holders of its common stock
»at

/

desire to be of service to industry wherever and

solve,

.r

organizations whose huge number of employees must

be fed well —but

'

10 Post Office
J ' <•';

Co.,

Goodbody & Company.

Dilworth,

\

BOSTON, Mass.—John Murray

associated "with Con¬

&

,

Cali¬

Crawford

with

been

recently

rad,

&

with F. L. Putnam & Co.

associated

become

Hannaford

Voorheis,

E.

-

R.

FRANCISCO, Calif.— with Keller & Co., 50 State Street.
Lloyd B. Anderson, Robert Craw¬ Mr. Gordon was formerly with
ford, Jr. and J. O. Stendal, Jr. du Pont, Homsey & Company and

Ralph Rotsted

Frank

:

SAN

«'*

President:

with*

Co., Russ Harris, Upham & Co., 136 Federal"
previously with Street.
*

Three With Hannaford

Oregon, f

-

■

R.

&

L. H. Dilworth

■?.

•

Claude

Building. He was
Waldron & Company.

share

per

Opens

Frank E. Voorheis

the

1946

entirely within Michigan, supply¬ 5, which will be paid to holders
ing electricity in 1,471 communi¬ of the additional common stock.
ties and towhships and natural gas
in 267.
The larger cities served
Herbert Lee
include Battle Creek, Bay City,
Flint, Grand Rapids, Jackson, Kal¬ ; PATERSON, N. jMferbert Lee
is engaging in the securities busi¬
amazoo, Lansing, Muskegon, Pon- ness from
offices at 746 Four¬
?

Calif.—

FRANCISCO,

Herbert R. Lee has been added to

stock in each year

Since November

since

Power

SAN

(Special to The Financial Chronicle)

»

-

1913.

mately $49,000,000; and the addi¬
tion of a seventh unit of 135,000

Consumers

With Harris, Upham

(Special to The Financial Chronicle)

ended

months

000 kilowatts capacity which were Sept. 30, 1952.
In the same pe¬
Exchange installed
during 1952 and a third riods income available for com¬
announces the election of the fol¬
unit of 106,000 kilowatts to be in¬ mon stock rose from $11,580,954 to
lowing officers for 1953.
stalled in 1953 at a total cost, in¬ $16,745,551.
The company has paid dividends
cluding substation extensions and

Detroit

The

With Denault & Co.

have increased from

nues

45

.

\

'71

i

''

46

The Commercial and Financial Chronicle...
Thursday, January

(326)

Continued

The build-up on the supply side of the oil industry
picture is the result ol an expansion and modernization
program that has beemgoing on for the last seven years.
Representing an investment of more than $17 billion,
the postwar program reached a new high in 1952 when
expenditures totaled about $3.6 billion in the United

from page 44

foreign competition, and (b) how can we compete
such foreign countries in other world markets.
"The activities of Commercial Credit
Company are

euch

with

i

Finance Companies, its
Manufacturing Companies.
During 1952 the volume of business under each of these
divisions was at a new all-time peak and the net operat¬
ing results of each were very satisfactory. .We look for¬
through

its

of

operations

the

"to

ward

>

.Thus

dication,

1953.

drilled

Banker, Cleveland, Ohio

and

Industrialist

cf the

Administration.

new

Three years ago this
not -as

Party,

play -to the American qualitiesinitiative, courage, inventiveness,
their sum,

in

"the

that

-

in government
require guards against excess

for

need

would

economy

the

at

bureaus

of

of

seat

under
men

govern¬

to

large

in

is

the problems facing

of

one

of freedom

measure

ment," and warned, "more and more

the- stimulus
be

can

of

counted

proper

to

upon

M.

products; the final result
collapse and the end

fewer

economic
do

their

development of a radically new type of helicopter which 1
virtually double the speed of existing models.
This machine is scheduled to be test flown during the
first quarter of 1953.
Our continuing program of diversification and development of end products strengthens my conviction that
Barium should have
•'

tjie 20 years since the Republicans were last in
power, a vast new bureaucracy has been created within
the Federal government. Taxes has risen to the point
first,

Barring,

confiscation.

of

orders

war

I feel

for

President, Edison Brothers Stores, Inc.

chpice. and.,

-Eisenhower's

able

then,

and,

ness

helping

overspending of income.
The

new

~

*

.

Republican Administration faces a challeng-'

opportunity

stand

the

realize

to

declared

Eisenhower

material' strength.

ago,-

gains of the past two decades, achieve
designated as

vailed that

the goal that President Eisenhower aptly

/US.'

"the American dream for betterment in the cultural and
of

G.

R.

The

outlook

the

for

DUNLOP

generally optimistic,

petroleum

.Certainly the industry has
vorable

position

to

meet

and

been in

never

foreseeable

level

and

inventories

built

oil

crude

more

a

Con¬

actually
quarters

cent

.

is evident in

concern

the possibility of tem¬
porary oversupply.
A " * V

to

the

now

placed

Korean

industry.

conflict

upon

of

One

,

not

the

pe¬

outbreaks

military which
calculations.
One
of

than
has

For

ever.

caught

still rising

is

that

products

the

first

Robert

G.

Dunlop

for

will

several

the
be

number

These

of

areas

of

the

years

though

dollar

supply

demand

is

country.

trends

show

at

such

times.

clearly there is

controls

on

the

no

industry.




The

price

closed the year of

stabilize

our

home

possess >a

in

any

nation's

in

1952 with

of

excess

all time high record of

an

$80,000,000

and

results

net

on

the

favorable side.
Total

shoe production in our country for 1952 will
500,000,000 pair. Since shoe production for mili¬
tary needs has eased considerably, shoe production can

exceed

well exceed consumer demands.

Previous

leather

high

market

leather

for

prices

tanners

created
chased

and

diminishing

a

shoe

production
synthetic materials. This was necessary to
meet consumer resistance to high shoe prices. The present
outlook is for a plentiful supply of hides and leathers,
and any price advances regardless of their origin will
only retard production and focus the possibility of re¬
establishing price control.
many

"•

Management that can offer the consumer efficient
service, greater value at lowest possible prices will re¬
ceive the
greater portion of the'consumer spending
dollar.

As

I

there

it,

see

business

the

on

RUDOLPH EBERSTADT

y

are

horizon

Barium

Steel

overhanging dark
year 1953.

no

for

clouds

the

American

Vice-President,

trends

market for steel of most types.

We
year

look

for

forward

our

to a profitable
steel operations and are

in

justification for price

evidence
or

wage

rication

and

end-products

as

to take

advantage of the fan¬

increases

in

the

use

of

'light weight materials, several of

new

our

operations have been experimenting
and working in fabrications of mag¬
nesium, reinforced Fiberglas, alum¬

inum, titanium and others.
lieve

only

that
new

these

and

materials

We
hold

much

inflation, the Korean*
have
kept national production rising. ;
It
looks
now
as
though
these
stimulants to greater output will be
War and overseas aid programs

of
it

lost, at least in part, to business
1953.
The Defense Department

an

has

%

gize the

not

the

future

but.

seem

another

that

business

catalyst to

economy

In other

promise- of not

sharply

all-out war, or another Korea,

does

expect
Rudolph Eberstadt

be¬

interesting products for

the economy by

reduced many
orqnance
contracts.
The new Con¬
gress has announced plans to reduce
spending for defense, foreign aid and
other programs.
Furthermore, short

*

So

generally agree that since the end of
World War II the spurs brought to

already

fa¬

cilities.

tastic

on

.

in

steel making, fab¬

steel

Company

the outlook for business
in every new year are clothed in cautious optimism.
For 1953, the cautious optimism, with the emphasis
on
"cautious," is deserved, in my opinion. Economists

be

planning further expansion and im¬
our

Locomotive

Corporation

^

provements of

.

pointing to stiffer competition in 1953
are
healthy not only for consumers but for the oil
industry as well, for it has always made its greatest
progress

factors

an impressive increase
making capacity In the United States and 1953
will
see
further
increases.
However,
our
expanding
economy and the tremendous pent-up
demand of the
steel consuming industries, automotive, appliance, railroad, oil and gas,
highway and building construction
and others, should provide a ready

sharper

^ Already some petroleum products, notably lubricating
oils and heavy fuel oils, are
selling generally below
ceiling prices. Gasoline also is priced below ceiling in
a

important

most

and with the likeli¬
physical volume of

to, increase, moderately.

The ye.ar just passed, has seen

of

up with demand—even
in this growth industry.

the

Consumer spend¬

in steel

competition
in

underpinning necessary to
economy, I feel, is limitless.
We

Traditionally, statements

consumer

time

The

sales

is the confidence or lack of confidence in the
have seen in the last few years occasions

President,

demands for oil supplies from the
would have an impact on all current

petroleum

during the year. Manufacturing' resources that can by greater
efficiency gear their plants to mass production so as to
give the highest quality at the lowest possible price, to
their distributors can help meet this competition and
overcome
the ever increasing consumer resistance
to
higher prices.
^
^

PERRY T. EGBERT

new

thing certain

the

'

We

:

lighting in other parts of the globe, however, would be
accompanied by

longer with

will

run ahead of 1952;
steadier nrice level, the

a

of

Up

has

selves

of the American economy.

Any extension of
fresh

or

world.

War

undue burden

troleum
this

the

Edison
.

into

But, once again, the outlook for the
year ahead is obscured by continued
throughout

no

"

people to spend their money. There seems reason to be¬
lieve that with the coming of the new Administration
there will be a reawakening of confidence in the stability

some

Harry

..

.

new

when business has slowed down due to the reluctance of

over

tension

"■

will maintain the current level.

future.

1952 but

over

there

is

war

i *

r

business done is likely

.

are
greater needs for our
increasing population. Greater
competitive forces will assert them¬

during 1953, and planned business spending for the

year

hood

result, the industry not only
is prepared to absorb in stripe an
expected increase in demand of from

There

now

economy

per

the brink -of

>

ing power will

and

occurs

ever

an exception, the competent economists
look for a year of prosperity in 1953. The
rate of Government spending will not decline much, if

any,
.

'

a

three to five

with this

now

business is not 'going to be
the doghouse and will have a fair-

With hardly

fa¬

products."
As

and

now

gap

industry who possess a huge
backlog of liquid assets ready for
plant expansion and equipment.

of the country

1953

sizable

up

both

of

in

demands.

tinued expansion during the year has
raised productive capacity to a new

high

?

is
its customers.

industry

both for itself

they were hesi¬
atmosphere in

be problems "in effecting the
transition from an economy based on inflation and main¬
tained by war and perpetual crisis to an> economy based
on real stability.
•
;
'■

President, Sun Oil Company

~

are on

we

'

,Of' course,

people."

our

the

Whatever

v

strength: moral, intellectual and

We must cling ever more closely

material standards

which

in¬

wealth bof
natural resources.
Our people rejoice in the highest
break which they have not had be¬
standard of living of any nation. Peak employment and
w
> y"
fore. 1
' •'
'
high wages will continue through, the year 1953. " The
The idea of pitching one "group
floating of* municipal bonds will place in the hands of
against another, such
as
farmers
state and local governments enormous funds for public
against' labor, labor against industry,
construction,
housing,
highways
and
schools.
Such
etc., is not going to be the p.revaiispending has been far too low in the years gone by.
M. C. Eaton
irg policy of this Administration.
Such worthwhile outlays can easily take the place of
That also gives everyone confidence.
some reduction in military
spending which will no doubt
As a result of this confidence,think that business is
/ occur.
°
going to be extremely good. The fear which has pre¬
In our own popular price retail shoe field we will have

to
the. fundamentals of American belief in human dignity
and rights."
Scrupulously following this precept, the
new Administration can, without sacrificing any of the
desirable fsocial

Whereas

in

agencies?

three .years

par¬

refine,

together to avoid hanging separately, and from

"Our foremost need is

upon

tant,

different

special interests, including foreign and domestic bor¬

President

own

Government has been antagonistic to
business for 20 years, it is entirely

rower^ contract seekers, and lawyers who make a lucra¬
As

plans

the

tive living practicing before government

their

on

and

inten-

ticular business this coming year.
Businessmen will move ahead with

governmental ideals
stated by President Eisenhower in 1949.
The crucial
question is, can the Administration resist the pressure
from job-hungry party members, from the widely in¬
terlocking group of Washington bureaucrats who always
ing

eliminations.

with

check

by the tapering off of defense spend¬
ing can easily be closed by business

Company

more

definite

a

the

spiral of high prices.
There will, no doubt, be a definite
reappraisal on government; defense
spending which should bring about
necessary readjustments and
waste

EATON

manner

have

flation and

.

a

re-

expect a strong and
legislative
program
which

should

incentives—oil

they will continue in

already

well

can

sound

very

sified

Cabinet appointments

,

stores renewed confidence and busi¬

,

from govern¬

in

I

predict good business for the first half of 1953 and
there are many sound reasons also on which to base
a full year of prosperity.

practically all

postwar defense orders, production would certainly be
at the low level postulated in the Eisenhower speech.
Federal finance is in a chaotic state from persistent

in 1953.

year

I

strongly that 19.53 will be an excellent year
businesses. The uncertainty is over;
the overwhelming victory of General Eisenhower will
give confidence and inspiration to management so that

/

satisfactory

j

HARRY EDISON

expect it to

(

C.

most

a

.....

of freeodm."

;

-

^

part

President, The Norwich Pharmacal

In

other

craft, aircraft components and prefabricated structures,
and Fiberglas for water tanks, barges, shelters and aircraft hangers. Another interesting "first" is the design

preparing to

of

keep America strong.

financial

is

Cyrus S. Eaton

made of

now

developments in the materials in which we work. This
engineering staff has already chalked up several "firsts"
to their credit in the utilization of magnesium for air¬

bureaus, more and more taxes, fewer
and

products
y

new Congress
give recognition to the forces that have made the industry great—freedom to exercise its resourcefulness

in

parallel

a

stressed

He

world."

ihe

be

freedom of action for all the people.
The oil industry seeks no special favors
ment. If the new Administration and the

have won us a

without

productivity

existing

With the acquisition last year of a large* capable and.
experienced engineering research and dcvelopn ent staff,
I believe we are in an excellent position to thoroughly
explore and capitalize to the fullest on any and all new

miracles.

restoration

full

which

should

"cushion"

But they do look to it to curb the
forces which have been the industry's
"greatest concern1 in carrying forward its expansion and
plant-replacement program. They-look to it for- the

provide

of

materials.

should

expansion effort, the petroleum industry
responding not only to market demand but

inflationary

line between government

and citizen" so located as "to

of

46,000

urgings ol the Federal Government for the devel¬
a cushion of reserve capacity. Just how large

perform

possible exploitation of Amerian re¬
sources for the good of all," with the

'"dividing

wells

new

record

the oil companies.
At the year-end a new Administration is
take over in Washington.
Oil men do not

fullest

"the

for

appeal

ringing

a

of

will

vast

been

this

private citizen, and

a

spokesman for any political
President Eisenhower made

or

the number
equal the

that

least

at

opment of

1

month, as

officeholder

an

has

to the

lies in the hands

The future of the American economy

1953

this

In

■

example,

for

in

drilled in 1952.

EATON

S.

CYRUS

<

-

the

industry is today geared for the highest
rate of operations in its history.
In addition, it is ex¬
pected that capital expenditures for 1953 will continue
at the same high level as in 1952.
There is every in¬

throughout

conditions

of these

continuation

a

States.

*

Insurance Companies and its

reconversion

22, 1953

with

words, it

new

can

re-ener-

P. T.

Egbert

demands.

appears

likely that business for the
Continued

on

page

48

Number 5188

Volume 177

...

The Commercial and

in

S. F.

Exchange

September 1952 for the pur/
of exploring for gas' and'1'oil'
likely gas

and the development of

FRANCISCO,] Calif.

and

oil

in

prospects

Texas

of

ernors

PHILADELPHIA,

Funds received

National

Bellevue-Stratford

SAN.

&

FR AN CI SCO,-

Howard

F.

has

Sillick

Co.

the

and, Calvin E.

staff; of

Supple;

be

held

Hotel;

rejoined/will

participate

in

a

Co.,

235

E.

was

recently with-Stewart, Scan-/.nation's leaders in industry, com-

Duncan & Co.

w£re

also

of

the

of

Board

and hear from many of the
Ia^^ai.0

iv.

iM/lnp+Mr

nAm-

Joins Chas. A. Day Co.
(Special to The Financial Chronicle)

(Special to The Financial Chronicle)

BOSTON, Mass.

—

Dean

fitter0 T Co^ l^Congress Chas* A* Day
& Co" Inc*' w?£%
Coi1T*t Strppt.
,

f

street." Mr?
.

I

,

,

T-v

*'

•

Davis

*

1

'

n

'was

Sjf.

inftnn

1_.

1T1 PITlh PV ;

ington a* Court Street/ membefb

formerly

of the Boston Stock

Exchange.

'

Governors for

two-year term. In addition to
the above Joseph Hauck of Schwa-;
bacher & Co.; Sherman Hoelscher

a

of;

Sherman

Ronald

the

Hoelscher

&
Co.;
President of

E.' Kaehler,

A

Exchange; and Victor T. Maxr

well

of

Parrish

&

Maxwell

m

are

members of the

|||

to

Governing Board.
Nominating Comserve
for the coming

year were

Earl T. Parrish of Par-

|||

Elected to the
mittee

|i|

Calvin

E.

M. J.

Duncan

f
I ■
til

of

Duncan

&

Co.; R. R.
Hodge of, Frank C. Shaughnessy
& Co.; Harold W. Lutich of Harold
W.

Lutich

Co.

&

and

Robert

toast

WM

i;

Maxwell, Chairman; Stanley R. Dickover of Mark C. Elworthy & Co.;

quarter-inch

||||

rish &

The

M

h

e

Mulvany of Irving Lundborg & Co.
Mi

to

So. Calif. Ed. Stock

^

500,000 shares of Southern
Edison

Co.

com m o n

(par $25) at $37.75 per share.
offering was quickly over¬
subscribed and the books closed.

aging fine whiskey,

^roharringaw.
thut
layer of

eoior,

mm

and

an

operates

with

California

mmi

Dam.

lines

from

the
difoe

at

.

$1

utmost

ment

drink
:

-

V.'.'S.'.'S.'.'

per

share was

Texas

Northern

was




organized

c grain is grown till

SchcnJey's

//.v.v.Jv

stock

kips—from the

vnf
° "taking certain
) u get the

Mwmmrn

Issue Oversubscribed

mon

L

which
goodness of

-

'

-

Nature's

unhurried

•

goodness

,

Schenley's

The ,besfc-tasting

unmatched skill

whiskies^ in > ages

in

ot'C'T drop

.

,

arS |'cr~thc whiskey is
your glass. It's

'.t.'''''''''''

substantially oversubscribed.

"t 7

...

.

jointly with R. V; Klein Co.,

the

in y

Texas Northern Qil

made

always

ng'd> inspected.
controls

1952-1953,
wil-I total ? approximately $150,110,000 and during

New York, N. Y., of 300.000 shares
of Texas Northern Oil Corp. com¬

retp.^?

depth

tiny fraction of

^«at
s part 0f the network
<>f
quality

for the calendar year 1950.
It is expected that gross plant
additions for the two-year period,

Collie Weber, P r e s i d eti t of
Weber-Millican Co./ underwriters
; of; New York City, reported* on
Jan.
16
that the offering they,

a

meh. Hie ehar is

•That'0

Hoover

addition, the company
presently has available for its use
405,000 kilowatts of like capacity
at Hoover Dam power plant.
Net. income after all charges, in¬
cluding
taxes
and- interest,
amounted to $23,767,584 for the 12
months ended Oct; 31, 1952; which
compares with $19,615,182 for the
calendar year 1951 hpd $19,658,025

'

-second
S 8Pht-seeon.l

w

In

tirements. *>/

for

Wmt

ex¬

such period the company has made
and expects1, to -make normal re¬

and

char the
wood

mform; throughout

ception of the Nevada portions of
transmission

lc.^0:

thin,

un¬

lease, with total effective opera¬
ting capacities under optimum
conditions of 1,394 420 kilowatts,
together with, transmission^ and
distributions; all located in central
southern

- „ot

t0aSte,J- The

heady bouquet

- the
to
t
ie exact

diesel generating plant under

and

t^e char

0f toast
essential in
giving the

limhi

mm

generating plants :(not/including
construction),

Wed

ri»71 t r/ the Vital ohar'

operates24
hydroelectric
plants and four steam electric

der

reddish-

wood is

mellow.smoothiiess.,
Sehenley trains men

and

one

is

mmm

V

now

a

m

The: company, incorporated in
California on, July 6, 1909, owns

Etiwanda Steam Station

turned o„t
the priceless
key

pJ,centcrahere.It

that

r

The net proceeds, amounting to
approximately $18,540,000, will be
used .for the company's; continuing;
construction program,. including.,
the, retirement of $4,000,000. bank

!

us

3 this quarter-inch

|

The

.

of a

(ost

it

as

aainTaV

I-

stock

loans,

»hU Tlis% insido

dcrneath

Blyth & Co., Inc. and 42. other
underwriters on Jan. Id publicly
California

who

keyhaeeel

hrown

mm

the

man

gave

rel
el,

offered

name of

wry. But

F.

Offer Oversubscribed!

Bernard 1/

BOSTON, Mass.—Lincoln Davis, Supple has become affiliated with

with Shields & Company.

banking and, finance.

merce,

rssrir

whltlnS> Weeks & Stubbs, Inc.

r

;

as

members,

ences

nnfin^'r.

.

lon & Co.

re- '

elected

He

......

C+o«iort

associated

Struthers & Co., 75
Mr. Buttrick wa.v>

formerly with Laidlaw & Co. and

.

Griswold,&-forums and management confer-

of

.

Street.

become

52 prior thereto was Manager of the

Co.,

JoinS Dean WltteT

of

series

Duncan

tirilVi

Luitweiler &

has

Wood,

State

Phil- Exchange, will admit Rachel Cohon to limited partnership Feb. 1.

Calif.-— lysts.are expected to attend. They

Montgomery Street.

Buttrick

with

Bendix Luitweiler Admits
Bendix,

Mass.—Herbert 1

BOSTON,

Hamilton,Matnagement Corp, 445

Financial

Calvin

irtfltr

(Special to The Financial Chronicle)

the'Grant .Street.

Several hundred financial ana-

(special t& the financial Chronicle)

F.

Hellman of J.
Barth

of

Wood, Struthers & Co.

Michael F.

—

Campbell, has joined the staff of

The

of

Rejoins Supple,! Griswold " adeiphia.

Annual

Marco

DENVER, Colo.

■■&£**«« i

time

Meeting Jan.
14i

Federation

Herbert 1. Butt rick With

(Special to Trtfe Financial Chronicle)

dUrW the four-dav period April

change for the
;

—

convention

Analysts, Societies, will

the

ff-ws
at the

annual

sixth

Pa.

47.

'

Oklahoma;

—

qan" Fra^pi^n ducing. oil properties and drilling
—-:
■
second

Joins Hamilton Managmt.

Analysis

Annual Convention

and

frojn the under¬
Mark Cl Elworthy of lVJark C. Elwriting are used for working cap¬
worthy & Co. was elected as ital
by the corporation and for
Chairman of the Board of. Gov- the
acquisition of oil leases, pro-

Mark C. Elworthy

(327)

Financial

pose

Elects Officers
SAN

Financial Chronicle

-

that
*

enjoy.

-

■

48

The Commercial and Financial Chronicle

(328)

Continued

The

from page 46

in

many

years

may

diversification.
Since

II,

War

World

a

bankers

flood of locomotives,

virtual

passenger and freight cars and other
has poured from builders' factories to

istration
sound

by cooperating in its endeavor to return to a
sensible economy.
If we as bankers will
and
restrict all
unnecessary
and needless

will have been played wisely and
effectively, and at the end of 1953, we will be proud of
credit,

part

our

contribution.

our

At

the

part

the

steel strike which

had

This

history.
the

of

in

is

ing the summer months. In addition,
the country at large is interpreting
the results of the recent national and

that
are

1953

are

intense

a

decade

ago.

equipment
field for 1953 probably will be accompanied by new
efforts toward diversification. What the nation's freight
competition

in the rail

builders and locomotive builders

car

have

done

in this

direction

already is impressive. American Locomotive
marketing heavy industrial equipment already for the
petroleum, chemical and power industries. Its products
also are sold to the farm equipment, mining, pipe line,
gas and steel industries.
Other companies have made
is

equally strong efforts to stabilize production
industries. New efforts in this direction

among

many

may

be

expected in 1953.
To put it briefly, the loss of outside "stimulants" to
production should bring more intense competition and

increased

diversification

own" in 1953.

business finds

as

itself

"on its

o

A.

G.

ELAM

President, Southern Commercial and Savings Bank,
St. Louis, Missouri

Beginning in the early 30's, the planners and policy
of our government, aided and abetted by the
crystal-gazing economists, partially succeeded in con¬
vincing the public that they possessed a miraculous
makers

secret

formula for running our gov¬
without anyone having to

ernment
work

or

The theory of these

worry.

ity

as

great

a

leader

is

pronounced and effective each

He has

in

proven

to be

selecting outstanding

a

men

these

practical business

They

record

instead

deserve

will be
on

to assist

more

litical

subsidies.

year on

G.

Work

will

be

The

and

conscienceless po¬
force local and

will

which

manifested

This

1951.

was

a

translate

Business whether
small will be encouraged to make a reasonable
without fear of reprisals or confiscation. Com¬

or

enterprise will be allowed to
realistic natural way.

exist

in

Studying carefully the abilities of the men President
Eisenhower has selected, I am
firmly convinced that the
Administration will endeavor to put more business
in government, instead of more
government in business.
With such able
leadership, we can approach the New
Year in an atmosphere of moderate
optimism,' even

Prospects

easy,
and interest rates will automatically increase.
Hence, it is my prediction that the net profit to banks
.,WiJl, fp£ 1953, equal or^ceed 1952.

the

condition not

are

has

the

number

A

of

them, including Pfeiffer, are intensifying
geographic areas already served.
These efforts should be reflected in a further sales
gain
for this segment of the industry in the future.
Generally speaking, the outlook for the industry is
favorable. Sales should continue to
improve; promotion
efforts will continue active; raw material costs and other
expenses are likely to be more favorable during 1953;
their

within

the trend toward

and
ness

to

efforts

earnings, it is quite likely that there will be

formity

of busi¬

of

trend

in

this

direction—much

no

As

uni¬

will

depend
upon the individual company's position with respect to
competition and its ability to integrate previous expan¬
sion efforts

industry

on

efficient and economical basis. For the

an

whole, however, the outlook is encouraging.

as a

E. S.

EVANS, JR.

President, Evans Products Company
As this is

written, business leaders in those industries

which

we serve foresee & better year in 1953 from
every
point of view than they experienced in 1952.

While most companies are engaged in

optimism

for

military projects,

1953

from

stems

the

projected outlook for production and
sales in

The

dustry

non-military lines.
heating and ventilating in¬
can expect to have
a good

year,

especially if government

trols

on

up.

materials

con¬

and

prices ease
Manufacturers of railroad load¬

ing equipment expect
promising outlook for

an

the

especially
first six

months of 1953.

Changing customer preferences in
types are expected to
govern
the
sales
and
production
programs in the space heater field.
It is expected there will be more
home heater

home
Edward

S. Evans, Jr.

heater

than

1953

certain
will

probable

The

installations

there

types

of

last

during

and
heating equipment

were

year

in "demand than others.
plywood is expected to be up con¬

be

more

demand for

1952. New applications of plywood are
found almost every day and there is a steadily growing
siderably

over

A growing population and an
in both domestic and industrial
building should result in an increased plywood and
lumber market for 1953. However, a heavily competitive
product.

increase

market may

affect prices and profits.
registrations will mean an increase in
the number of automotive batteries and, consequently,
Increased

auto

increase in the number of battery separators.

American

The
the
and

F. FAIRLESS

steel" industry

has

now

Corp.

largely solved

problem of meeting steel requirements for defense
civilian
use.
United States Steel
is justifiably

steel

it

that

proud

the

1953

year

Sales

at

are

produced
in

ingots

1952

nearly
despite

29,400,000

net

tons

of

the

indications that

been

a peak in
reached, at least for

midyear.
Recent

should

months

have

shown

new

postwar records in steel production,
in

Alfred

Epstein

being; with these under
control, profit margins should also show

some

im¬

all

industrial

production, and in

personal income.
Steel demand has
remained strong and some steel prod¬
ucts are still in short supply. Weak¬
ness
in the first quarter is not ex¬

Consumers' stocks of steel
generally to be below normal
unbalanced, but should return to

pected.
appear

the

aggressive sales and promotion campaigns
that have been carried on. Leaders in the industry plan
to continue their efforts to popularize beer as a drink
of moderation—a beverage highly desirable for con¬
sumption in the family circle. Already, this theme has
proven its value as evidenced by the steady increase
beer.

control

sin¬

The brewing industry is aware that the steady, though
slow, improvement in sales during the last several years

in the

less Government

generally also should be favorable for brewers.

BENJAMIN

provements.

reflects

likely that the regional brewers

Chairman of the Board, United States Steel

time

better

but

crippling effects of the 54-day strike
for

encouraging.

some

costs

brewer

with

and should continue uninterrupted. The
regional brewers are making greater efforts to capture
a larger share of the market within their own
territory.

an

pre¬

gradual, but steady
improvement and prospects for im¬
proved earnings also are good. There

new

though the problems are many and complex. Since most
people have become debt conscious, personal and
public
debts will be
substantially reduced. In doing so bank
deposits will shrink somewhat. Borrowing will not be

in

local

entirely

years

anticipated

improved sales into higher

continue to show

Needless

itself

small

.

of

ber

market for this

gular, however, to the brewing in¬
dustry.
Because of increased taxes
and
higher operating costs, many
corporations found its difficult to

large




seems

an

good busi¬

the

picture

national shippers will continue to enjoy the
of the industry's future growth.
:
This trend has been
significantly evident for a num¬

past.

a

the

bulk

ceding year. At the same time, how¬
ever, most brewers experienced dif¬
ficulty in bettering the earnings of

highly

God-given

is

which

the

and

not be

The year 1952 was a year of paradoxes for the brew¬
ing industry. Although final figures are not yet avail¬
able, it appears that sales will again show a slight gain
over
the preceding year—a continuation of the trend

"gravy-trains" will be side-tracked.

the

peak
may

Elam

net income.

private

Korean
economy

are

Decentralization

result, it

a

sensitive

President, Pfeiffer Brewing Company

applying to. Washington for aid.

petitive

the
the

the

the over-all.

state governments to assume their
respective responsibil¬
ities instead of

profit

of

in

ALFRED EPSTEIN
A.

their political power.
Rewards will be given

epidemics of unwarranted

from

health

the

reduction

I would tend to mark down the second six months.

ness

beneficial, and budget balancing will stand high
agenda and receive priority. There will be no

the

index

the

in

25%

Historically, however, it would still make

are

them.

price
as

the

and

that

robust

area.

only to those
days of getting the "mostest"
for the "leastest" are gone.
Competition will be keen.
Efficient management, both in
government and busi¬
ness, will be necessary to survive. Shocking bureaucratic
extravagances will not be permitted to continue. Thrift
who

months

control

large breweries,

future

from

spectively.
Such a sequence of events — expanding
supply, stable demand, lower profit margins—may lead
to some
unwarranted pessimism.
The action of the
wholesale commodity price index in declining nominally
18

fewer and

distant

not

passed

also coincides with the incidence of moderately declin¬
ing profits after taxes. Profits are expected to be $17.8
billion in '52 or 16.5% and 5.5% below '50 and '51 re¬

judgment should be reserved for the latter half of the
year.
If the softness in the raw material commodity
market should continue and spread to the semi-finished

of

again.

the

Although I must conclude that business will continue
through the first six months of 1953, probably
averaging 223 on the Federal Reserve Board Index,

rugged, resourceful, experienced in¬
dividualists, and will take the places of the professional
politicians. They were selected on their achievement
popular

generated

toward

good

master

men

has

boom

a

the coming

exceptions.

As

belief

itself for seven years,
and when no new dynamic forces are on the horizon
—this assumes that present rearmament or warfare is
not to be intensified—it is always well for the business¬
man
to consider elements of potential weakness.
This
is particularly true at the termination of a period that
has witnessed an expenditure of $151 billion for new
industrial plant and equipment.
A part of these new
productive facilities have not yet had their impact on
supply. We are entering a period when the availability
of goods can continue to increase but the consumer
demand seems to be leveling off. This increased supply
When

as

ing the American Way of Life—the
way that made America great.
All
of

few

fact,

him in the Herculean task of restor¬

successful.

free¬

the present phase of rearmament though
at peak levels in dollar expenditure, is not as stimulat¬
ing dollar for dollar as the "get ready" phase of 1950-51.
Housing though strong at a projected 950,000 to a million
starts is 30% below the 1950 record.
In

indication

becoming

day.

the

evidences that better

necessity for large advertising and promotional expen¬
ditures, make such a trend logical.
It appears evident
in

expenditures, investment in new plant and equipment,
public works, housing, and population trends are all
at
best sustaining forces rather than self-generating
stimuli that would set in motion a new expanding cycle.

commodity

President Eisenhower's natural abil¬
more

in

some

quite likely that the same condition will again prevail
this year. The higher operating costs, coupled with the

have

ambition, ability, and character
good virtues. It has created an

raw

are

has been symptomatic of the industry since the Repeal
of Prohibition, continued in evidence during 1952. It is

that

question today is whether
the
present
basis of the postwar
boom, now in its seventh year, has
enough "self-generating steam" to
rise to higher levels. It seems to me
that the most optimistic case that
can
be presented is for a continua¬
tion of present levels.
The bullish
forces such as projected government

Roland A. Erickson

for

dreamers was to penalize, by tax¬
ing heavily, those who hiad worked
hard, saved systematically, and in¬
vested wisely. Such socialistic prac¬
tices
brought us to the brink of
bankruptcy.
On Nov. 4, 1952 a new era
began.

opportunity,

in

trend

will

The big

locomotive is only as old as its

than

less

were

more

belief

and

the

There

in

be

to

As a matter of
materials were readily
year.

another factor which may assure better
operating costs.

of

restatement

a

somewhat

—

The

"Eisenhower boomlet."

major components. A steady flow of
replacement parts makes it possible for railroads not
only to keep their diesels on the road earning, but in

The

of

dom

as

faith

America's

last changeover of

in

elections

state

Of course, a
second important stabilizing effect is the increasing sales
of renewal parts for diesel locomotives.
It is almost

locomotives

result of the settlement
artificially dammed up a

normal flow of market demand dur¬

upon

to modernize their locomotives to the lat¬
For these reason, sales of renewal parts
likely to total what annual sales for new

during the current

constant prices may prevail during

more

over

present time, over-all business in the United
operating at the highest rate in peace-time

is

States

by the fact that it has sold more diesels for

many cases
est designs.

better supply

year

Worcester, Mass.

export than all other builders combined.

diesel

& Trust Company,

a

the prospects for a freer supply of cans.
Raw materials generally also are expected

fact, however, most of

eign roads offer an increasing opportunity, a fact which
Locomotive has recognized for some time as

a

During the year, this item again showed

or

President, Guaranty Bank

Thursday, January 22, 1953

greater proportionate
gain than was shown
in the
distribution of draught beer. It is quite likely that this
trend will continue during 1953, particularly in view of

available in 1952.

ROLAND A. ERICKSON

American

axiomatic that

major role in con¬

a

and

eliminate

present levels of produc¬
tion for sales to domestic railroads alone. Sales to for¬

evidenced

play

capital equipment

domestic railroads.
An excellent ^market still remains for rail equipment,
but in many cases the peak of the demand has passed.
As
one
example, nearly 17,000 disesel locomotive
units were built and placed in service from Jan. 1, 1946
through December, 1952.
In 1946, diesels performed
16% of passenger service, 10% of freight service and
29% of switching service. As of Oct. 1, 1952, dieselization has progressed to the point that railroads reported
70% of passenger service, 64% of freight and 76% of
switching was handled by the diesel.
Yet there is probably a five-year market for new
diesel locomotives based

will

and

can

tributing substantially to the success of the new Admin¬

be returning to a more
normal state of operations. For the rail equipment in¬
dustry, it seems to me, this development may bring
more intense competition, and increasing efforts toward
time

first

...

proportion of total sales represented by packaged
-

and

normal

levels

ond quarter

some

time in the

sec¬

of 1953.

In the second half of 1953, steel
industry capacity—which will be in
excess

should

of
be

116

million

fully

ingot

adequate

tons—

to

Benjamin F. Fairless

meet

the needs of defense and civilian users.

of supply and demand does not

This balancing

indicate that we are en-

Continued

on

pqge

50

Volume 177

Numbeij 5188

Continued

from

.The Commercial and Financial Chronicle

..

4

page

had
r

A New Look at
restrictions against imports

severe

from the dollar

area.

*

Evidently, reconstruction, of it¬
*

start

been

has

of

In

made.

that

a

many

world, there

is

an awakening, a new
stirring of
energies/that promises well. The

States—and the * other... in¬

United

the

tnemselves

to

advantages

economic

supporting

underdeveloped

of

cess

12

of

billion

parts of
of

of

in
have

progress

and

areas,

dollars

the

in

same

do
in

the

other

But this line

that,

forgets

while

aid to European recon¬
has been

total

tries

time

same

reasoning

the

could

the world.

struction

effort,

a

vital part of

European

themselves

coun¬

have i financed

nancial and technical aid.

90% of their reconstruction out of
their own resources. The conclu¬

beginning has been made in
building up basic utilities such as

wealth

power and communications.
ects for the development of

Proj¬

London last month emphasize this
facet
of
the
economic
problem

culture have been initiated.

Mod¬

provided growing amounts of fi¬
A

agri¬

roads, ports and harbors have
There is an in¬

ern

been constructed.

sions

of

reached

the

Both

advanced

monwealth

foundations that must be laid

capital

fore there can be

further ad¬

any

toward that standard of liv¬

vance

ing to which the peoples of the
underdeveloped countries legiti¬

in

countries.
the

and

developed members of the
statement:

be¬

Conference

underdeveloped

amount of sound plan¬
ning for the future. These are the
creasing

Common¬

the

at

Economic

the

subscribed

less

Com¬

to

this

"The major sources

to

promote

try.

.

...

Capital

Policies'

saving

development

from

to stimulate do¬

mustbe
outside

adopted.

will

of

then

the

often

Which

of

administra¬

and

and

based.

to

of

in

The

the

that

On

unduly complicated, and
is an obstacle to
development at
least as serious as the
shortage of
capital.
abroad

make

bution

useful

a

If-

here—and

is, I. am

ment,

ing.
In my view, however, the most
urgent task confronting the.pplitical leaders in the

countries of

centrate

efforts

is'to

on

they

them
to

the

their

betterment

peoples.
be

never

Nevertheless,
from

outside

local

as

resources

of

pace

before,

of

than

to

from

in

a

private

visit to

sing

my

one

of

.

a

step

up

the

I have

said

again,

the

present flow of capital to the

un¬

the Bank's

find a fruitful basis on which to
aspire.derdeveloped areas is not ade¬
visits to member nations work."
quate to the need, and must be
In
the
second
of the Bank, I have seen at first
place, V Europe increased if a satisfactory rate of
hand some of the underprivileged
millions who are continually faced

the

be

other

view

that

been

to

capacity

made

on

to

regarded

be

normal

when

economy-

terms

that

worth

education.

an

is

job

a

I know

that

here

practice.

political

In

it will

cost to do it,

in terms not

only of money but of time. Prog¬
ress has not been so rapid as many
of us would have wished, but there

IN

THE

is

no easy, quick
way to win the
light against poverty.

Real

Achievements

Have

Continued

Been

achievement

real

five

a world
the kind we seek is

which cannot be

dertaken
aided.

Each

many

enterprise

an

successfully

to

un¬

its

has

financial

make;

work

to

available

resources

it, be they great
in

small,

or

such

a

way

are

as

produce the best possible end
sult in
is

re¬

and

in

the light of

perience with the problem
the years that I have been

ex¬
over

asso¬

ciated with the World Bank, that I
have begun to ask myself whether
all

who

this

have

direct interest

a

enterprise

selves
their
have

in

have

position

a

maximum

put

in

them¬

to-throw

contribution

in
or

applied their'efforts in

the

most effective way.

First let

me

developed
„

speak of the under¬

economic

solution

a

backwardness

countries
need

as

the

to

of

these

recognize^ ip theory, the

for internal

"

theory that back¬
be

are

with

overcome

billions of dollars is
that

<

,

,

,

Cash

President, Thompson Products Company

Ernest C.

based

that/ most

backward

resources.

Hand and Due from Banks

United States Government
(Including $13,800,000.00

and

tries

the

.

69,812,534.00

,

.

Lawful Reserve)

Attorney, Squire,- Sanders & Dempsey

Other Investments

.

...

.

.

.»

....

First

Mortgage Loans

Real Estate

on

32,015,385.65

;

96,970,353.58

.

.

.

Randolph Eide
Chairman of the Board,
The Ohio Bell Telephone Company

Other Loans and Discounts.

Mervin B. France
President

Bank Premises—127 Public

.

40,294,147.32

.

Square

1.00

.....

-

Bank

Dwight P. Joyce

Parking Lot—W. 3rd & Frankfort Ave..

1.00

President, The Glidden Company

Frank C. Lewman

Interest Accrued and Other Assets

898,145.26

Chairman of the Board,
Richman Brothers Company

Total

James L. Myers
-

.

$257,972,273.63

.

-

President, Clevite Corporation

the

on

countries

LIABILITIES

Director, Columbia Transportation Company

Drake T.

Perry

.

.

.

Secretary, Harshaw Chemical Co.

Surplus

•

•

•

•

0

0

#

#

0-0-0

0

.

...

$ 15,000,000.00

Henry S. Sherman
Chairman of the Board

VaiL;

Reserve for
.

Vice

Contingencies

2,447,745.95

,

Attorney, Sayre, Vail & Stedtf

Reserve for Taxes and Expenses

President, Cleveland Cliffs Iron Company

831,417.60

Savings Deposits

230,326,247.68

Arthur P. Williamson
President, Dill Manufacturing Company

Other

Deposits

6,713,834.09

backward

are

Deferred Credits and Other Liabilities

.

0.

0

2,653,028.31

0

ignores the fact that

resources,

itself

as

$ 17,981,705.82

Obligations.

George Durham

insufficiency of financial'and

other
is

It

on

Dempsey

solely because they lack financial
the

(Less Reserves)

.

President, Fisher Brothers Co.

John S. Wilbur

assumption

"

•

Frederick C. Crawford

assistance.

The

*

;

"

Herman L.

can

-

.

Director, Cleveland Electric Illuminating Co.

T.J.Conway

changes and lo¬
cal effort but, in
practice, they
place all the emphasis on outside
wardness

RESOURCES

Attorney

Laurence II. Norton

world.

aid

Harold T. Clark

Frank M. Cobb

Chairman of the Board and

Many who advocate large-scale

foreign

-

Vice President, The Warner & Swasey Co.

an¬

my

CONDITION

December 31,1952

Robert F. Black "

Irving C. Bolton

OF

,

_

President, Wheeling & Lake Erie Company

nomic development from that

gle,

to

the shortest possible time.
when I view world eco¬

*

It

President, Cleveland Construction Co.

own

each can
that the human, material,

ensure

STATEMENT

Warren Bicknell. Jr.

President, White Motor Company

of

economy

nation

contribution

set

and

by any one country or
countries, alone and un¬

group of

to

to

parts of the free world.

Building

and

point

during the past

in Europe

years

other

TRUSTEES

nevertheless

can

CLEVELAND

OF

as

often

product- of

as

and

........

.

$257,972,273.63

political

social evils within the

themselves;

Total

not,,

that

coun¬

Security and Uninterrupted Dividends

these

evils, if attacked with vigor and
courage, can be eradicated.
The belief that outside aid

Six Generations
is

to

of Savers

the

heaven-sent answer to the
problem of economic development

has been strengthened
by the




suc¬

MEMBER

FEDERAL

DEPOSIT

INSURANCE

as¬

be

come

opinion,

intrude—

them out

lending—•

be

Founded 1849

Accomplished
We

CITY

my

factors

0min$0

for

is

have

and it is difficult to
keep
of inter-governmental

Congress if the request
supported by the mollify¬
ing plea that the money may one

doing, but I know, too, what

has

appropriate in

as

ing, adequate medical care or the
there

reasonable

which

carefully and objectively
and that they should

never

that

develop¬

sessed,

have decent shelter, decent cloth¬

elements of

"fuzzy"

transactions, that they

specter of hunger—who
known what it is to

the

part

serious debt ob¬

all

related

repayment

minded

can

and

loans should be confined to

should

He felt that

an

as

Like

serious debt

think," he said, "we ought to give
them a loan."
Gentlemen, loans
are not gifts.
It may be easier to
from

this
are,'

loans and real grants.

ment

countries, I was discus¬
impressions with a Wash¬

funds

to

loan

part

regarded

hold

I

the situation called for the exten¬

get

opposition

they therefore tend
impair the integrity of all in¬

real

return

injected sion of financial assistance from
supplement to the United States Government. "I

can

ex¬

repeat now

ternational credit operations. And
they accomplish nothing that can¬
not be accomplished
equally well
by an intelligent combination of

willing to enter the field.

a

have

I

to

transactions,

the day
interests

ever

financial

vari¬

Loans of this kind

essence,

to be

re¬

that will

way

in

grant.
They have the inherent:
fault that they are not always apt

a

lending stand¬
point which will make

a

member

In my

have

impair

Some months ago, on my

mately

with

so

ington acquaintance.

marginal.

strong

to

when

of

wish

should it do

will be

can

that

say

not

voiced

loans.

in

purposes, de¬
foreign economic

will

been

interest-rate

proposal.

capital

development.
and

lot

aid

which

considerable

years;

has

pressed—and
—my

in

disillusion¬

only inheritance

quarters for a policy of giving
aid in the form of
long-term, low

Govern¬

so

But

ous

own

mdre^remote-than

con¬

mobiliz¬

the

.Foreign

more

its

extend-

recent

support

certain

States

repaid.

49

posterity.
In

lower international

may be, and on applying
economic expansion and

to

ca¬

views.

be

ligations.

ing local resources, however slen¬
der

day

ment may be the
of

payment prospects on existing- or
future
credit
operations.
Nor

ards

underdeveloped

the world

their

hold

I

clear-cut

United

for
to

form

worth support¬

sure,

absorptive

aid, I think it should do

intelligent,

an

the

point

and

the

cides

contri¬

coordinated program for this
purnose

achieved.
be

the need is not met

as

this

definite

Technical assistance from
can

to

by private investment, what form
snould this foreign assistance take?

not

are

to

amount

Insofar

countries

projects

be

pacity of the recipient country.

most

difficulties. in

even

to
not

waste,
foreign assistance must be related

investment

be

underdeveloped

leads

development is
But if there is

technical

large and costly

a

could

execution

of

must come from within each coun¬

mestic

on

shortage of just such skills in

European eco'nomy al¬
recognition in the
short space of four years, 10 or
out

managerial,

skills

program

European Recovery
Program. It is argued that, if $10
or
$12 billion could change the
most

foundation

a

tive,

reconstruction

the

recognized' American

nations—have

dustrial

Foreign Aid

face of the

self, has not been enough.
In the underdeveloped world,
countries

(329)

CORPORATION

on

page

51

50

The Commercial and Financial Chronicle..

(330)

Continued
tering

from

DeCOURSEY

48

page

rigid

controls

of

current

tegrity
the

In

spite of the 54-day strike and earlier work stop¬
caused a loss of about 7,000,000 tons from
our mills, production in
1952 appears to have been the
sixth highest in the history of United
States Steel.
Largely as a result of the increase in the company's
productive capacity over previous periods, our produc¬
set

4,900,000

only

was

than

less

On Nov. 26,

of

steel

made

in

its

furnaces

has

ment

the

since

company

The

Our

these

least

came

performance
other

in

1952

than

the

creditable

was

tions

flow

of

proceeded without

sufficient
The

serious

scrap

disruption

to

the

job

in

and

1952

labor

our

in

steel

capacity

ahead with

our

program

our

material

raw

during

All facilities

1953.

engaged

were

Some

for

increasing
moved

resources

Pa.,

now

75%

at

Puerto

to

construction

workers

An

is

of

to

rebuilding coke
a continuing

at

as

about

that of

the

Interest rates should

1952.

current

by the efforts of the

level

but

may

in¬

be

new

excessive short-term

to

correct

War

It

is

the

the

economic

postwar

impossible to predict

it will not

It also

history

of

our

appears

plus signs in

aging indicators

con¬

and Fairfield,
planned for the fourth

Steel

Division

three

operation early in
U.

S.

other
snhere

Steel

continued

stream

units

be

placed

its

support

agencies

pollution

in

the

of

of

in

atmo-

problems.

Although ex¬
tensive research is still required,
specific installations
at Duquesne,
Pa., and Geneva, Utah, for cleaning waste
gases are progressing.
At Universal, Pa., the first step
of
a
three
step program to completely replace the
Universal Atlas Cement Company's
plant was under
way. The new plant will incorporate facilities
designed
to

eliminate

inherent

The
the

to

objectionable

the

operation

emission
of

American Steel and

engineering

phases

of

the

Wire

plans

of

smoke

that

is

existing plant.
Division is completing
to construct a blast

S.

M.

Fleming

our economy

Some of the

encour¬

National

Tube

Division

started

facilities

is constructing a new plant at
Pa., for the manufacture of pre-fabricated

all-steel

military barracks and other buildings. Initial
operation is planned for the third quarter of 1953.

Finally, in the period ahead I
are

once

again turning

to

the

am

successful

the American free enterprise system.

sphere I

am

confident of the steel




confident that

we

operation of

And in this atmo¬

industry's future.

year and

assured for

..

is still rising.
time to

some

High

per¬

come

and

and,

October, lead

of fertilizer which is in abundant supply.

demonstrated-ability

to

than

are

ever

before and

(7)

produce

in

assured of

on

greater
a

They have
quantities

reasonable

price

sellers.

in

the

16

cents

we

spend large sums

Business planning has been conservative and in¬

The

are

not

excessive.

over-all

to

pears

preponderance of these plus signs ap¬
overshadow bearish indicators that are con¬

stantly

appearing on the horizon. These include the
tightening of money rates, the reappearance of a buy¬
ers' market in
many lines, capital expansion seems to
have

passed

its peak, exports are declined because of
shortages and increasing economic difficulties
throughout the world, the cost of operations are steadilyincreasing, and production, income and employment are

dollar

all at historic

signs to create

peaks.. There is sufficient danger in these
a

in

S.

U.

to

market declining from
IZV2 cents, although the

to

market

our

was

excellent.

recent

improvement in for¬
markets, the
domestic- price

advanced

to

14

over

cents

per

Andrew Fletcher

brief,

domestic mine production for 1952 is esti¬
375,000 tons, compared with 388,000 tons of lead

Reclamation of lead from scrap declined
slightly and
is estimated at about 440,000 tons in

1952, compared
482,000 tons in 1951.
consumption was approximately that for. the
previous year and is estimated at 1,200,000 tons. The
Lead

of

excess

supplies

increase

in

over

smelter

healthy note of caution in the minds of

requirements
stocks

was

by

or

absorbed by

the

government

zinc

mining in¬

stockpile.
In

order

to

maintain

dustry of the United
basis

Lead

the

States

lead
on

and

sound

a

and

profitable

still permit necessary

and

imports, the St. Joseph
Company is in favor of adoption by Congress of

the suggested equalization tax, which would
increase
by three-quarters of a cent per pound for each 1 cent
decrease in the domestic price below 16
cents, with com¬
plete elimination of the tax above 16 cents. This should

help to smooth .the violent fluctuations in the domestic
and

a

year

can

a

way

devoted

to

free

enterprise and.

be developed to protect lead
I believe our mining industry

can

excessive

look

detrimental to producers:

1953 begins under favorable auspices, with,

Administration

new

from

proven so

alike.

consumers

The

imports,
forward to a satisfactory 1953.
HENRY FORD

II

President, Ford Motor Company
The

story of Ford Motor Company in 1952 is a story
major objectives simultaneously—
a check-rein, the other under a
spur.

of the pursuit of two
one

under

The

demands of

a

nation

of the people of that nation
for* peaceful stability offered

lenge to

bolstering its defenses and
striving

a chal¬
entire organization.

our

We accomplished many of the dif¬
ficult

defense "in order to contain Russia's expansion ambi¬

ventories in most lines

Market

freely offered by
The liquidation in
foreign price down¬

was

to

re-

tions and to protect the free world.

(8)

the

60,000

the equivalent of approxi¬
mately 10 cents a pound and resulted

-

,

The unsettled conditions of world affairs will

quire in the foreseeable future that

to

about

Metal

metal forced the

substantial

purchasing power to a group which,
has been largely dependent.
(6) Farmers are well equipped with modern machin•ery and appreciate more the advantages of intelligent
use

stocks

with the opening

London

assuming that

in the past,

1

lead

full potential.

for their products.

Gunnison Homes, Inc.,

gov¬

accumulated.

Government

market which have

and

equipment at their Gary, Indiana, plant for the extru¬
sion of high alloy seamless
tubing and solid shapes by
the "Sejournet" process.
At the Lorain, Ohio, plant
engineering is progressing • for installation of facilities
providing for the cold expansion of line pipe. Initial
operation is now scheduled for the latter part of 1953.

Harrisburg,

seems

a

been

Industrial capacity and production is 50% greater
than before the war and is still rising.
Our industrial
plants and equipment are more modern, and both man¬
agement and labor know better how to utilize their

vides

scheduled for the second quarter of 1954;

of

the

an

Increasing emphasis is being placed on the im¬
portance of research, which is constantly developing new
products and operating methods.
This is particularly
true in chemical and pharmaceutical fields.
(5) By 1960, over 16 million people will be drawing
pensions aggregating over $10 billion a year. This pro¬

Furnaces, Cleveland, Ohio, to expand
capacity for commercial pig iron. Initial operation is
The

national

our

with

probable

(4)

furnace at Central

now,

of

it

(3)

municipal and

solution

for

type leadership that has made

Imports of lead increased sharply and totaled about
535,000 tons, about double imports of 260,000 tons in 1951_

a
high level of retail sales. As long as this
exists, large scale unemployment is highly
improbable.

in operation in

will

desire

same

unneeded

produced in 1951.

condition

1953.

governmental
and

placed

were

remaining

determined to tangibly

seem

Ministry of Supply sold

ac¬

will sustain

major units for the production of sheet and tin
of the Pittsburg, California, plant of Colum¬

products

its

tons

In

are:

billion

sonal income

of 1953.

The

goal

the

British

has

total of $267

1952.

The

or

Indiana,

bia-Geneva

abil¬

pound.

Alabama.

The

our

through unrealistic ceiling prices and the
by foreign buyers that

surplus lead had

eign

struction of facilities for increased production of
naph¬
thalene at Clairton, Pa., Gary,

quarter

and

important developments in 1952
affecting
governmental in origin.
Foremost was the
the artificial 1951
shortage created in

realization

demand in

(1) Our nation has not as yet attained its full growth
potential. A population increase of 2Vz million a
year indicates an expanding demand for goods, services,
schools and municipal improvements.
(2) Personal income has now reached the fantastic

are

the value

far to achieve

go

United States

Due

in 1953, as there are

occur

of

mated at

too many

operations

They

their earnest

pe¬

today to offset the bearish factors.

Initial

industry as well as in
statesmanship unselfishly demonr-

beyond question

prove

This will require

of

most

were

reversal

of

excesses

the

and

II

proportions.

at

nearing completion for

The

lead

ward

studied

have

blast furnace

are

ranks

ANDREW FLETCHER

foreign

who

six

Engineering phases

sur¬

knows

President, St. Joseph Lead Company

those

period. What is now becoming
increasingly
apparent is
that
its
severity will not be of depression

of

source

whjch

bring

is

American industry the wonder and
envy of the modern
world.

American

ment

bat¬

oven

assure

the

President.

new

time, most business executives have had
strong conviction the extended period of prosperity
cannot continue much longer.
It is only natural that

riod.

coke.
In all, 12 batteries are involved—
Clairton, Pa., two at Cleveland, Ohio, one at
Lorain, Ohio, two at Gary, Indiana, and one at Duluth,
Minnesota.
At the year's end, work on four batteries
was either finished or
nearing completion.

•

activity

curately the timing of any readjust¬

in

now

program

undertaken

was

business

on

in

some

World

of

extensive

teries

volume

same

ment

operation, facilitating
transportation, highway, and materialhandling equipment.
construction

which

assuredly learned much about
managing our economy during the
past 20 years; but such knowledge,
in all probability, will not prevent
some
type of wholesome readjust¬

expediting facility instal¬
shipments of Venezuelan
early in 1954. The vessel

start

Ordaz

effect

good

a

fact

most

this project at the peak.

on

expected

are

have

can

in

Such

ernment to have the

as
a
lower taxes—a

should have such

Orinoco Mining Company is
at Cerro Bolivar and

ores

towards

staff

They will need the full support
are willing to pursue
only constructive for their own

not

are

-

demonstrate

tating depression period of the 1930's
a feeling.
We have

com¬

planned for comple¬

are

10,000

lations

dock

the

tend

should

our

DeCoursey Fales

country

for

whole

and

prob¬

sounder

a

country and experienced the devas¬

Works, at Morrisville,
produced its initial coke,

quarter of 1953.

in

prosperity

For

iron and ingots last
and, barring unforeseen circumstances, will
delivering some finished products in the second

tion

pressing world
result

to

capable

a

country. There is every indication that businessmen
recognize the challenge and are closing ranks behind

ef¬

President, Third National Bank, Nashville, Tenn.

December
start

solve

tools.

used

Eisenhower

stabilized

a

from

significant strides.

Fairless

pleted,

better

a

future,

and

or

with

be

can

General

economy, which is a necessary prereq¬
uisite for the continuance of the
long-term growth of our

SAM M. FLEMING

better way to

a

same

which

ity of private enterprise and

Treasury officials to
government debt on
a sounder basis.
The year 1953, barring unforeseen de¬
velopments, should be a good one.

disputes.

the

to

to search for

us

the

be

should

fluenced

confusion

when it behooves all of

Looking

to

continue

resulting from inter¬
mittent work stoppages caused by government's inter¬
ventions
in
the
wage
negotiations with the United
Steelworkers
of
America.
This
experience
brought
hardships to all parties concerned. The time has come
settle

forts

the

in¬

creditable

also

was

strated

coming

The Administration's

refinance the

waste

con¬

savings banks should continue to be relatively
plentiful, with mortgage lending going forward in about

and opera¬

due

government.

ments for

scrap.

production

view of

additional

should

the

statesmanship

activity at
second

the

himself

use

tools
effect.

companies but for the entire country;

and

for

to

desired

policies that

now

solve

of

income

1952.

facilities and
this

how

vigorous
to

many
about

Savings-should continue at almost the same level
as
the record breaking rate achieved in 1952.
Invest¬

shortage of scrap which threatened steelmaking operations during the year was averted by the
organized effort of the s*eel industry in cooperation
with steel-consuming industries.
This cooperative ef¬
the

and
taken

For the next few
years, and

of American business leaders who

for¬

1953.

of

than

itself

severe

fort facilitated

leaders*

and savings.

strike.
A

labor

key word

rounding

hopeful

more

industrial
the first

high

year

lems

prolonged steel

will be

through

National

special

productive

unques¬

problems should result in

tinued

This notable production achieve¬

the face of obstacles

feel

intelligent

which

action

significance when it is realized that
U. S. Steel alone during its 52 years has produced
oyer
twice as much steel as Russia in all her steel-making
history, going back to the 1860's.
in

are

Administration

his

will

country

face.

1952, U. S. Steel poured the billionth ton

into existence in 1901.

frankness

Under

halves
•

1953 with confidence.

year

coping with the stupendous
eign and domestic problems we

1951.

in

the

to

of

record

all-time

the

and

tioned.

pages which

tion

forward

principal reason, of course, is the action of the
people themselves in electing a President
ability to bring together
discordant
groups
and
whose
in¬

industry

steel

why the country should be

reasons

many

American

hopes that
controls will proceed promptly.
The

and

an

particularly for 1953, the
seems to be stability.
Above nearly every¬
thing else, businessmen would like to be able to count
on a reasonable
degree of stability in government poli¬
cies, which so greatly affect their businesses. There are

are

look

to

who has the

no

businessmen

of

There
The

longer needed and it has
plan for decontrol to the National

are

formally suggested a
Production Authority.
elimination

over

officials,

all segments

economy fully appreciate the
problems that must be faced, it is much easier to formu¬
late precautionary and corrective
measures.

able

the production and dis¬
tribution of steel were in effect during the past year.
The steel industry has expressed its conviction that
these

government

President, Bank for Savings in the City of New York,
New York City

a

"'J Government regulations

FALES

When

period of recession. Instead, I believe we shall
then be engaged in a normal and healthy state of com¬
petitive selling.

.Thursday, January 22, 1953

readjustments

dictated by
previous year. Our ef¬
primed for the long-awaited

events of the

forts,

economy

of

free

competition,

were

devoted in considerable degree to the
necessities of war. Yet we continued
to

~

expand

capacity

our

while

*

civilian

productive

increasing

our

pro¬

duction for defense.
The

beginning of 1952 was note¬
worthy for us in at least one impor¬
tant respect.
It signaled wide ac¬
ceptance of the new Ford, Mercury,
Lincoln
trucks

passenger

cars

and

that.made.important

the automotive

Ford

news

Henry Ford, II

in

industry. Production

was

curtailed, how-

Continued

on

page 5£

Number-5188;.; The Commercml'artd financial Chronicle

Volume >177

the

(331)

traditional

* road-blocks; that
of the world. The rest of the world. world economy as: an
>expansion;
but I am convinced is faced by t h e prospect of a in American imports.
that more integration would ben¬ chronic deficit;- the United States
V'l do, not deny, that there Is still
efit
the economies of ^Western is faced. by " the * prospect- of a <
a?strong protectionist .sentiment
Europe.
- chronic
surplus; Up h to now I. do., in -the United " Statesman*• inheri¬

Continued from page 49

lie iri the way,

■

A

-

,,

not

At
it

-

Foreign Aid

becomes

impossible to ensure
standards

that these

always

are

Problems

<

Confronting

And, finally, what of the United

There may, of

course,

be

cases

the

Second

War

as

the

injection of capital is world's greatest creditor nation,
needed to develop abroad some and with a; production machine of
a
source of raw materials which are
capacity unmatched in history.
Since Korea, there has-been a
of such urgent and strategic inter¬
further
est to the United States that the
great expansion in pro¬
project should go ahead even on ductive capacity which has made
possible
the
satisfaction of defense
an uneconomic
basis. I put such
needs without any significant de¬
situations
outside normal
eco¬
nomic development, and they privations in the civilian economy.
where

an

within' the

fall

not

scope

operations of the International
Bank.
But
if
the
government
should decide, to extend financial
of

The

.

problem

United States
the problem

is

confronting
the

the
of

converse

-

demonstrate

not

a loss, to thecountry, and that
they themselves stood to benefit

tance1 from

.

an

age

-

position;

-

was- very

a

,

confronting the rest

the

long

run,

to

strengthen

The

the

object

of

Continued

campaign

the

1 assistance^ irif

such a. situation, I
think the government should rec¬
ognize a responsibility for seeing
the

that

financing is handled

in

which will not impair the
capacity of the country concerned
to service loan or equity capital
coming into the country from
a

way

other

for the purposes of

sources

normal economic development.
There

circumstances where
Bank Will de¬

are

International

the

cline to make normal development

loans

for example

—

absence

because of

of

repayment .capacity,
or because the proposed
project
lacks economic merit, or, because
the borrower is unwilling to com¬

Ownership •

ply with certain prerequisites (for
example, by working out a settle¬
ment of default on outstanding

circumstances
by the In¬
surely the,
very circumstances which ought
also to inhibit lending by the gov-,
debt).

these

But

W

■,

r

which inhibit lending

ternational

.

To

ernment.

ignore

Bank

are

ignore

is to

the principles
international

sound

them

on which
loans should

be based.'
It

is,

view

therefore,

that

.

emphatic

my

lending

development

should be strictly governed by the
standards I have mentioned, and
that

additional government
which can be made
available for
development, and
which
can
be
prudently used,
any

financing

should be frankly labeled as

grant

assistance.
Problems Confronting Europe
And now

a

word about Europe.

The problem still confronting Eu¬
rope is how to pay her own way
in the dollar world—how to get,

The

ownership of American Cyanamid

Company is in the hands of
33,000 holders of the

more

company's

than

common

ment trusts

aid,

enough

supplies

that

dollars to buy the
are vital to her if
at

If Europe is to do this, the prod¬
ucts of

fered at competitive prices in the
export markets of the world.

only

the

United

also those third
world
can

where

States

countries

vested

essential

but

supplies

be bought or where there are

materials

or

from

American

come

joint ownership of one or more

and those shares held in bank

men

I think there

are

every state

in the

and women,

single shareholder

2% of the

owns as

company's stock and

of the shareholders

own

much

over

as

28,500

less than 200

shares each.

American

factory work¬

teachers, farmers, housewives and

others. More than half of these individual

shareholders

No

brokerage accounts.

from all walks of life

Cyanamid Company is typi¬

cally American in the broad base of its

ownership. It is typically American, too,
in the

are women.

diversity of, its interests and in its

practical application of chemical research
The balance of the

Europe herself do to
her competitive power?

can

increase

They live in

Union and

in¬

vestments.

What

company.

ers,

indi¬

portion of their assets in the

a

business

are

yourself who have in¬

in the

dollars to be earned—dollars orig¬
inating ' either f r o m American
purchases of. foodstuffs and raw

of

viduals much like

her industry must be of¬

These markets mean, for Europe,
not

Over 80% of these shareholders

fiduciaries, shares

persons,
and

stock.

and other

held in

otherwise than through American

her economy is to be sustained
least at its present level.

company's

common

stockholders includes trust funds, invest¬

to

the solution of

problems in everyday

living.

still elements

inflation to be stripped out of

some

of

the European economies

—elements which are now adding
a considerable burden to domestic
costs

of production.

that

there

should

I think, too,
be

every

en¬

couragement of the trend toward
integration and rationalization Of
the basic industries of Western

Europe. The Schuman Plan is an
important advance in the right
direction. The more that European

industry-

can be
rationalized, the

be lowered

as a

integrated and

costs will
result of speciali¬

ucts become. I

AMERICAN

COMPANY

more

zation, and the more competitive
will the position of Europe's prod¬
am very

well

aware

of the formidable difficulties and




to the

.

,

would

to

*

emerged from

World

be

American1 people that an increase
in imports would be a gain, and

when our, world from it.
As taxpayers,*because increased
different from
way that takes account what it is
today. This is a senti¬ imports would bring nearer the
of her economic position in the
elimination
of European; aid.
ment which must be changed and
modern world. She still wants to
As consumersi because increased
which I believe can be changed.
be able to sell her goods freely. But
what is needed is a new and imports would bring to them bet¬
abroad.
She still welcomes any liberal
attitude toward imports ter, or cheaper goods.
As producers, because increased
opportunities of making safe and - and not
merely a reluctant acqui¬
profitable foreign investments. escence in specific tariff reduc¬ imports would provide dollars to
But she still resists the idea of
tions. After all, every dollar that foreigners with which to buy mope
throwing open her own markets leaves the - United : States must, American goods.
to foreigners, which is the only
As investors, because increased
sooner or later, find its way back.
opportunities for foreigners to sell
way in which the rest of the world
I should, like to see a nation¬
can be given the chance to earn
in the American market would
wide campaign organized in which
the dollars it needs to buy her
mean increased opportunities for
there would participate all leaders
goods and to service her capital. of
profitable and safe American in¬
public opinion -in the United
vestments in foreign countries>
It is my belief that no other States who
Tecognize the need for
As champions of free competisingle factor could do as much, in a changed attitude toward imports.
.

tion in

State^?
The United States

observed.

think: the United States has
faced up to this situa¬

squarely

t

United States

should

51

30 ROCKEFELLER PLAZA, NEW YORK 20, N.

Y.

on

page

53

52

The Commercial and Financial Chronicle

(332)

-

Continued from page

products is expected to continue high during the year.
Projects to provide more power for our expanding econ¬

WALTER S. FRANKLIN

50

President, Pennsylvania Railroad
a crippling strike
Even so, we were able to produce
million passenger cars and trucks and

than

more

one

Production
satisfy the

62,000 tractors—as many as the National
Authority would permit, but not enough to
demand.

of

production for

our

exclusive of passenger cars

defence in 1952*
trucks for the military,

and

in the year before. The
business now on order is

about 12 times as great as

was

value of all our defense

total

than $lJ/2 billion.

more

prospect that unit controls may be further relaxed
during 1953 is encouraging. It may seem
can approach our postwar goal and still con¬

The

eliminated

■or

that

we

tinue to serve the cause of

freedom.

lower cost in an

competition.

free

Such

would be

situation

a

welcome event in the

a

coming year, when we will observe the 50th
©f the founding of Ford Motor Company.

anniversary

During 1952, our passenger car and truck production
about 1.25 million units.
This compares with
million units in 1951 and with 1.9 million units in

totaled
1.5

Althoughiour production for civilian purposes declined
in

1952, employment increased under the requirements
of defense, and our payroll
was about $100 million
larger than in 1951.
number

salaried

and

hourly

of

workers

employed by Ford is about 159,000 in the United

now

States—the peak for 1952 and an increase of about 14,000
over the 1951
peak and a record number since World
War II.
The

/

.

total

payroll for hourly and salaried personnel
$726 million in 1952, compared with $625
million in 1951 and $582 million in 1950.
combined

was

The factors influencing this rise in total payroll were
increased

increased wages

employment,

and

increased

salaries.
Ford

energies directed toward

the defense program

have had these results:
Production

of

meeting

tempted, at the

requirements,

defense

same

we

have

at¬

time, to anticipate the peacetime

needs of the future.
At the start of the year, automotive facilities programs

exceeding $500 million were under way. A majority of
these were completed. At the end of the
year, additional
plans for new construction and ior expansion and mod-,
•ernization of existing facilities were under considera¬
tion, awaiting the availability of materials and a let-up
in building restrictions.
•
*
•
■
•„

Ford engineers continued their search for better ways
of

developing better products, with the knowledge, that
they will soon have a research and engineering center

and

scientific

Begun

five

laboratories

years

ago,

continuing.
In

We would

it

and

we

,

regard this

ume

the

July, the effects of which extended
through August and into September.
The freight rate increase granted

a

favorable

more

by the Interstate Commerce Com¬
mission, which became effective in

great aid during
the year. The
results definitely demonstrate both
the need and the justice for this last
instalment of the general rate in¬
crease, for which the railroads orig¬
inally petitioned the Commission in
January, 1951.
However, even with

year.

new

era

national climate

assure

in

which

to

do

confidently hope, continue

of achievement

for Ford Motor Company.
I

•

FRANCIS

Chairman, General Foods
We think business is going to be good during 1953.
General Foods gross sales have gained more than 10%
during the past 12 months. Our net

profits, as measured by percentages
ot sales, have been at an all time low
—too

•

.

They should be better.
Assuming there is some' stability in
taxes, I see no reason why earnings
should not at least keep pace with
profits during 1953.
gross

is

than

$100

of

GF's

foresee

a

our

new

of

national

We
1953.

in

feel

for the year
people have faith—faith

President-elect

Eisenhower

We

I

are

planning to

go

tional

employment

and

is so

closely geared to textiles that it will
experience a similar trend, except
for those few companies manufac¬

turing

Fuller

whom

and

ume

Kenneth

C.

broader line of products,
anticipate good vol¬

a

of

most

machine

and

The highly diversified

profit margins.

high

machine

tool

this

of

industry

area

has

operating at full capacity and even with a further
"stretch-out" of defense orders, the increased demand

been

industry to modernize and reduce labor costs is al¬
certain to provide full operating schedules and

of

most

good profit margins.

rqbber manufacturers have had a satisfactory
of operations in 1952 and the outlook for the com¬
ing months is very favorable.
Television, our lusty new industry, had a sharp, re¬
covery, in 1952 from the serious slump of the previous
year and the outlook is highly promising for the coming
The

year

<

During the year both freight and passenger services
improved by the use of new equipment ahd
supervision of operations.
The losses due to pas¬
senger service have been reduced through increased rates
for mail and express service; also, through the elimina¬
tion of unprofitable passenger train mileage. These im¬
provements will be continued in 1953.

This

months.

is not

so

much

from the

through the opening of

markets provided

new

television service areas and the allied uses of elec¬

new

already stated that the very large
equipment program Is about completed, we still have
some
large capital expenditures for further improve¬

local demand for

to

due

relatively saturated, but rises

sets where the market is

have

we

production

remain at high levels.
The local chemical industry

better

tronics and electronic equipment in general.

j

outlook for the construction industry,

The

which has

phenomenally high level of activity for the

ments

in 1953 and 1954.
These include the completion
Pittsburgh passenger station facilities, the modern
ore pier in Philadelphia harbor, and Morrisville
freight
yard to serve the expanding industries in the Delaware
River Valley; a new freight car repair shop at Hollidays-

enjoyed

of the

past few years, is not as promising because manufac¬
turer^ in this area are not expanding facilities in any

burg, Pa., to be complete^ in 1954v which will materially

exceed,

the

reduce

a

important degree and new apartments and housing units
built since the

repairing freight Cars, and a new
•major freight classification yard at Conway, Pa., to hp
completed in 1955. The new Conway Yard will improve
.freight train performance and at the same time producje
substantial savings in operating costs.
The total cost of
.these..projects is about $75,000,000.
It is expected that
the capital required for these projects will come from
the,company's own resources without requiring any new
financing.
•
tr',
of

cost

■

J'

"

war approximate, if they do not already
the increase in family units plus immigration

the

into

This is not

area.

true

so

of

some

of the

sur¬

rounding areas, however, especially in Bergen and Mor¬
ris Counties, where residential building may continue
in good, though somewhat reduced volume.
The prob¬
able establishment of new shopping centers later in the

also take up some of the slack resulting from

year may

the

decline

in

residential

Although there

immediate

A. F. FRANZ

;

President, The Colorado Fuel and Iron Corporation^

are

industrial

and

construction.

.several state and municipal road

We

looking forward to continued high levels of
activity in 1953. Our program of improvement
expansion is being continued, and several large
projects on which we have been working will be com¬
pleted a/id placed in operation later
are

merchants

above,

should

volume of business, because sales

and

indicate

the year.
to announce

in

We

were

also

pleased

recently the acquisition
manufacturing business,
plants, and inventories of the John
A
Roebling's Sons Company with
plants in Trenton and Roebling, New
Jersey.
In
and

creased

product
on

lines.

of" their

laying programs
locomotives, freight

on a

by

and

the

cars,

and

large exploration, refining, and marketing activities.

Population
many

types

increases

of

indicate

construction

with peak deposit

they

Such

Our

track

may

not be as satisfactory because

area

are

in

a

sound posi¬

levels and high loan portfolios.

pattern maintains the level now antici¬

also

should

share

in

the general

of

era

prosperity.

the fact that

diesel

goods

previously heavy buying, the longer life of the

the

pated,

our

more

from the

consumption of consumer soft goods is high.

If the industrial

1953, we have in¬
productive capacity and

our

of the past few months

of 1951 have been pretty well used up

Financial institutions in the

needs in
our

and current

tion

with the steel industry,
help meet both defense and

civilian

spree

indicated
favorable

units, and the reduced rate of establishment of families.

common

to

hoarding

of

the

enjoy a

that consumers' inventories resulting

Sale of hard

equipment. The oil and gas industry, with, the
expected availability of more materials, plans to carry

Clarence Francis

the

business

other

:•

volume will equal that of the past few years.

With the relatively-high level of employment

.

from

continuation

full steam ahead.




vigorous rise can only be followed
recession even though total na¬

by

have been

While

capacity of the industry is
markets can readily be<saturated and, therefore, a too

come

road passenger traffic and 82% of our road

electrical power.

manufac¬

that

such

freight service, and to perform 91% of our switching
operations.
Of the railroads, the Pennsylvania is now
the largest user of diesel power and the largest user

addition of

;

and

in the grand group of capable leaders who will assist him.

our

woolen

the

of

some

ductive

of the basic industries which
products are also proceeding
Alwin F. Franz
with
major
expansion
programs.
Many
manufacturing
firms
are
adding new facilities in anticipation of need for in¬
creased production.
Mining companies are at work on
large development projects. Railroads have announced

encouraged

Our

„

will average
approximately 2%%.
As we expect business during 1953 to continue on a
high level throughout the year, operating efficiency
should improve.
Upon the completion of the dieselelectric program in the first quarter of 1953, there will
be sufficient diesel and electric power available to move

use

this

products get into
distribution..

|

part of the program that has been financed

of

rather

turers, and although price and profit
margins leave much to be desired,
volume is good and it is anticipated
that it may be maintained for some
months. On the other hand, the pro¬

many

products.

continuance

pace as our newer

enjoying.

confidence is based

sales during the past 12 months

attributable to

We

million

Franklin

adequate return upon the capital invested
period of very high business activity such as

diversified

low.

More

S.

th$4arge diesel-electric program totaling 1,348 en¬
gines, consisting of 1,906 units, only 33 switch engines
remain to be delivered during the first quarter of 1953.
Of the total of 31,860 new freight cars in the program,
only 3,600 remain to be built in 1953.
This huge pro¬
gram, including 450 new passenger cars and heavy re¬
pairs to some 36.00Q freight cars, is largely completed.
The entire cost will be $651,400,000, of which $233,000,000
has already been paid in cash, and only $8,000,000 more
remains to be financed.
The interest charges on that

of

CLARENCE

of
Walter

an

a

now

are

the world textile markets has been
fully in this area with the exception

Improvement in
reflected

Of

That

greatly improved line of products

history—it will, We

our

the

The business outlook for the Passaic County area for

the next six months appears to be definitely favorable.

Pennsylvania
Railroad and the railroad industry as a whole have not
earned

FULLER

President, County Bank & Trust Co., Paterson, N. J.

these increases the

of

RENNET#

C.

1952, was a

May,

noteworthy.

business, will not only mark another important milestone
in

possible recession, will undoubtedly place even greater
emphasis on quality of product, cost control, customer
service, and expanded sales effort.

building-projects under way, it is doubtful that the total
as

have, been proud of it iri a normal

that 1953, with
a

understanding. Higher production will bring increased
competition and there will undoubtedly be fluctuations
in some lines of business activity.
However, business
firms, in planning to hold their end of the line against

operation.

-

record

written in the turmoil of 1952 is sufficient

was

anee

unsurpassed in the, industry.
Work on: this project is still:
-

retrospect,

confidence they will be approached with new vigor and

towards a more
The lower vol-of business was largely due to
steel strike during June
and

96%

reciprocating aircraft engines and the
preparation under a contract to build J-57 jet engines
at Chicago; completion of a Ford-owned plant at Wayne,
Mich., part of which will be used to manufacture J-40
jet engine components; a Navy-owned assembly plant
for the J-40 under construction at Romulus, Mich., to be
operated b^ Ford; mass production of the 3.5-inch "ba~;
zooka" rocket; production of the Patton 48 tank,;, produc¬
tion of the 500-horsepower GAA medium tank engine
originally designed and produced by Ford in World War
II: creation of.prototype models of a new quarter-ton
"utility vehicle; production of wings for the B-47 bomber;
and experimental work on/an automatic weapon.
While

curity program seems indicated for some time ahead.
All of this points to business opportunity in 1953.
Taxes and inflation are major problems but we have

progress

efiicient

we

total

operations indicate a

1952

slight improvement in the earnings for the Pennsylvania
Railroad over the previous year, in spite of a lower vol¬
ume of business.
This is encouraging as it shows some

during

1950.

The

for

the last six months of

is: to offer our customers improved products
atmosphere of full production and

This goal
at

results

estimated

The

further

»

value

Sales

omy are in progress by utilities and electrical companies.
In addition, large and diversified production for the se¬

controls and by

by government

ever,

in the steel industry.

Thursday, January 22, 1953

...

continuing need for
including homesv schools,
a

highways, bridges, etc.. which create markets for a wide
variety of materials. Domestic demand for agricultural

the

levels

an

optimistic outlook must be tempered, however,

realization
of

that

production

the productive

time

we

for

have

been

several

years

enjoying high
during

which

capacity of the country has been

built to almost fantastic peaks.
A

decline

in

world

trade,

compensated for by

not

grants or loans, unsettlement in commodity markets, or
in any

major industry, could and probably would cause

serious chain reactions leading to an industrial set-back.
It is
our

highly important, therefore, that

we

should not let

confidence of the moment and the optimism engen¬

dered

through the probability of

a

more

litical environment minimize the need for

cation, and sound business judgment.

favorable

po¬

self-^discipline,

:.<•■.■

Continued

on

page

54

Continued

from

it

to
foreign competition would

tion, because their willingness
accept

pared

they were pre¬

that

demonstrate

they

practice what

to

preach.
the

opening

market

of the American
goods would

up

cohesion and good
practical obstacles

realize the

I

wholesale and over-night
dismantling
of American trade
barriers.
What is
important is
any

goal of import liberaliza¬
tion should be accepted, and that
both
Americans
and
foreigners
that the

the

free

world.

economic

her markets
We

must

a posi¬
goods and

is

services for the goods that Amer¬

regarded
in

imposed.
will

unwarranted inter¬
domestic
affairs
in

as

and

icans

in their

want

been

to

buy;

Instead of creating good

in

a

where conditions have

cases

tion to pay

to

sell and they

Bank for

Cooperatives

With the assistance of

able and will¬

are

wide

selling

a

cial

generation out of date.

takes

account of

no

our

role

silrely

It

as

as

political

a

inherited

have

not—we

Our present policy is

policy.

full

we

have

just

as

bentures

leadership

the

of

June

free

not

greatly
and

the

expanded

contacts

with,

responsibilities to, the rest of

world.
We

the

have met

I think

world.

Clearly, what the United States

1, 1954.

America

Can

our

America

can,

and I

and

nually.

think

They

at 997/s%

will.

bear

per annum

1953,

1,

1953,

2,

interest

payable

thereafter

de¬
Feb.

(Special to The Financial Chronicle)

SAN

MATEO, Calif.—Gordon P.

Larsen
now

and

John

R.

on

McVey

are

with Rex Merrick, 22 Second

Avenue.

With Hamilton

Managem't

(Special to The Financial Chronicle)

at

Franklin

is

now

with

A.

Hamilton

Corporation,

Management

offered

and accrued interest.

Colo.— Roger

DENVER,

June

semi-an¬

being

are

on

due

The debentures are
before maturity.

debentures

challenges in 2%%

meet this one?

we

Feb.

mature

redeemable

The

past.

dated

which

Two With Rex Merrick

group

$30,000,000 of collateral trust de¬

inherited the

Central

1, 1953, and which are outstanding in the amount $30,000,000.
J

Street, New York City,

a

the

redeem

Cooperatives 1%%

nation¬

of recognized
program tends in the long run
ing to invest and they want to use. dealers in
securities, the Central
In
to foster suspicion and acrimony.
broad,
the challenge that Bank for
Cooperatives on Jan. 14
What we need to do is to accom¬ faces Americans today is to exer¬
offered publicly through Macdonplish a fundamental and lasting cise wisely the economic leader¬ ald G.
N'ewcomb, its fiscal agent,
change in United States commer¬ ship that—whether we like it or 31 Nassau

of

for

bentures

Debentures Offered

want

must put our partners
position to service the capital

to

used

Bank

we

that Americans

understanding, this kind

own

proceeds from the sale to¬
with cash on hand are to

gether
be

partners in

our

Net

$30,000,000 Central

put

53

445

Grant Street.

.

barriers is no

trade

lowering

to

unhealthy

(333)

policy

should be convinced that a
of

an

creditor nation, no account of our

will in the Western world.

to

create

feeling of dependency, and some¬
times of resentment against what

foreign

to

greater

bring

because

citizens,

American

As

to

seems

ference

Foreign Aid

should do is to open

In the European countries,

pense.

51

page

A New Look

At

$

Number 5188.. .The Commercial and Financial Chronicle

Volume 177

passing phase in American com¬
policy, but a break with
tradition as complete as the aban¬
donment of
protectionism by
Great Britain in the middle of the

mercial

last

century.
not

do

•I

claim that the lower¬

barriers is

ing of American trade

the dollar

short-term answer to

a

Time will be necessary.
But that is the strongest reason
lor making a beginning now.
I know that in several quarters,
both here and in Europe, the view
is held that there is little to be

problem.

hoped for in the way of an expan¬
sion of American
imports, even

of completely
foreign goods to
American market. They point
conditions

under
free

.

productivity

in

increases

the

to

by

access

the

.

American economy, and to

of the

competitive advantages which,
those conditions, American

the

under

enjoy.
But
that it is in
that

still

will

industry

surely it is axiomatic

Americans

of

interests

the

they should specialize

in the pro¬

duction of those items

where their
techniques

natural

and

resources

best advantage,
items for prod¬
abroad where foreign

be applied to

can

and to trade those

from

ucts

produce

techniques and resources
a

relatively better or cheaper ar¬

ticle.

is not that the
should lose all
self-sufficiency, but that it

What is required

-American economy
its

be-' -willing

should

little less
In

summary,

,

.'
"

*

a

let me

once

say

think we have
achieved ■ much during the past
five years. The United States has
been
confronted with
immense
and. unprecedented problems in its
relations with the rest of the
world. It has reacted to the chal-

'"again
*

become

to

self-sufficient than it is.
I

that

which have confronted

1 lenges
*

it

that
have
and
disconcerted its enemies.
If, in
discussing
American economic
policy, I have paused here tonight
speed and on a scale
heartened
its friends

with

whether we have al-

consider

to
..

a

acted in

ways

ensure
our

a way

the maximum return

The

demand

times

multitude of actions.
tried
;

done.

to

from us a
What I have

do here tonight

dicate two things

suDremely important for us to
First, I think we need to con¬
tinue and to increase support for
do,

development abroad.
in conducting its business in

economic

-

But

should
recognize its responsibility to
manage its own financial contri¬
bution in a way that will not prej¬

this

field, the government

udice
other

the

flow

of

capital

from

sources.

not
closing
simply

Second, I think it is clearly
■

satisfactory
the

to

continue

dollar-payments

gap

*; by giving away part of our pro¬
duction
and
persevering with a
'

us over

$200,000

repay

their cost every 9 months!"

"Accounting

systems

is to in-

which I thing it

is

-

e/faJUmaJAsave

from

policy of "aid, not trade" or some¬
To Americans, this
seems to create a comfortable dis-

and

time-saving

equipment in a major publishing house
such

as

ours

(we ship

approximately

tions,

and

formation
"Our

to

50,000,000 books a year) are of para¬
mount

save

importance.
depend

Machines in

on

our

and to handle

National Accounting

Book Club mail

our

rooms

payroll and account¬

ing work. We use National Cash Regis¬
ters

in the Doubleday

company

Book Shops and

cafeteria.. The result is a com¬

plete, integrated sales-accounting system
that

provides control

over

all transac-

us

in¬

valuable

Machines

$200,000

ease

of

for

pay

months, for they

9

every

over

National's

DOUBLEDAY

management.

National

themselves

"We

furnishes

also

—

a

year.

And

operation makes it

No

'

position on the part of European
countries to live at American ex¬

THE NATIONAL CASH

&

matter

COMPANY, INC., NEW YORK

what

the

size

or

type of your

business, National Machines increase effi¬
ciency and soon pay for themselves out of
the money they save. On many jobs, Na¬
tionals do up to 2A of the accounting work
automatically! Call your nearby National
representative today. Let him show you how
much you'll save with the National System
adapted to your needs.

simple to train operators and keep them

happy—another reason why we've or¬
dered 4

more

National "Class 31" Ac¬

counting Machines."

ye?

e/ffiRoncU

/.

Atcowrm MAcmts
ADDING MACHINES

Treas

>

Doubleday & Co., Inc.

thing like it.




a year

meant

investment, I have not

belittle what has been

to

"

which would

REGISTER COMPANY,

DAYTON 9, OHIO

*

CASH MttWS

.

54

The Commercial and Financial Chronicle...
Thursday, January. 22,

(334)

Continued from page

level of capital investment throughout the year. -Under
full employment the stretch-out* in tank and

FREDERICK V. GEIER

52

1053

present

GARRETT

J. C.

fr

President, The Cincinnati Milling Machine Co.
Machine tool builders produced close to $1,150,000,000
of machine tools in 1952. This 80% increase in output

President, The Garrett Corporation

business volume prospects for 1953
with total airplane procurement,
as the major part of our present business is developing
and manufacturing vital accessories and components for
aircraft.
The products
we
manu¬
facture
are
of the type used on
Our

company's
tied

closely

are

in

1951, which itself

over

the

machine

tool

was about double 1950 output, is
industry's answer to the nation's ap¬
peal to meet defense needs.
This remarkable step-up in output,
which is well above the industry's

plished

potential market exists in rela¬
tionship to total aircraft production.
The
aircraft
accessory
industry
done
an
outstanding
has
job
in

operations

but

a

"

plant

equipment

—

which has

decided strain

on

most com¬

and

been

a

panies.

In

investment
is
c.

Garrett

in

case

at the

start of the Korean con¬

This

represents outlays of the

flict.

company's own funds, and such expenditures are war¬
ranted by our belief in a continued need for a sub¬
stantial airplane defense program and our conviction
that this need will be recognized by our military plan¬
ners.

large industry invest¬
intelligent long-range

Effective utilization of the very
ment

only
procurement,

by

achieved

be

can

rescheduling
and stretch-out
programs
down to a minimum, and
by avoiding the peaks and valleys which make pro¬
duction so costly.
You just cannot juggle thousands
of highly skilled workmen as you would turn a faucet
of

scheduling

off

and

oil

and

and costs at

Present
assures

at its peak

keep efficiency

to

expect

keeping

by

minimum.

a

backlog

defense and commercial orders
production during 1953 unless
scheduled—and for which production
of

deliveries

as

now

upset by a rescheduled stretch¬
out program.
Earnings outlook would be considerably
brighter if there was a realistic approach to the income
tax structure which would encourage and reward growth
is

in

now

and

process—are

expansion.

misnomer
the

very

defense

if

existing

The

there

growth

was

ever

that

is

Excess Profits Tax—a
one—penalizes severely

the

to

necessary

so

present

effort.

GATY

Vice-President and Gen. Manager, Beech Aircraft Corp.

The

aviation

finds

industry

itself

dominated

by

a

semi-war

economy.
The rearmament program has re¬
sulted. in the re-establishment of wartime-sized organi¬

zations in the various aircraft manufacturing plants.
addition

to

their

In
regular peacetime

factories,

many

companies have

activated

their

wartime

facilities

and

emergency

have

some

re¬

created

entirely new facilities to meet cer¬
tain special requirements and needs
of the armed services.

The

aviation

industry has passed
through the postwar period of lean
years

itself

and large losses and now finds
in the position of possessing

backlog of business that
to express the back¬
log of the larger individual compa¬
so

great

a

it is customary
in

nies

billions

of

dollars.

Unfortunately, the companies will
not realize full financial benefits

John p. Gaty

from

these

it is

a

2%

means

case

rare

ure

tion

was

these

of

when

an

aviation

bonanzas of dividends and also

nor

manufacturer

means

volume.
no

wind-falls,

that the finan¬

unfilled

orders for machine

about

are

equal

although

the

widely from
During

the

above

total

to

order

1952

backlog

company to com¬

the

peak

period

of

orders

subsequently revised or
The present backlog of over $1,100,000,000 is
was

can¬

celed.
onefifth less, but is considered more solid in character. The

backlog has been reported as about 10 months' output,
assuming continuation of long overtime schedules and
subcontracting.
Since backlogs vary widely

extensive

and

some

the

unfilled

firms will not need to draw

against the

000,000,

or

order

should

backlog

subcontractors,
be measured

on

also

normal

industry capacity of
14 months' production.

over

around

$900,-

mented if Government proposals to

put into effect.

broaden the mobil¬

As machine tool build¬

cost-cutting machinery is stimulating interest in the
types of machine tools wnich have proven so much
productive than the older types in general use.

During the yast 20 years, except for the World War
period, American industry has not installed enough

II

machines

to keep machine tool equipment up to
Although the postwar years have seen record
levels for capital expenditures in the United States, the
new

date.

has

been

added

increased

by 30%, American industry
metal-cutting machines.
Not enough

few

machines

have

installed

been

to

offset

the

has
new

aging

and

obsolescence of existing equipment.

Similarly,

the trend

toward

dent around the world.

industrialization

is

evi¬

These trends at home and abroad

have stimulated

growth in machine tool building.
Ac¬
celerated technical progress, increased
competition, and
broadened markets may be expected to result.
Most

machine

tool

builders

have

well-filled

order

books and expect 1953 will be another
busy year.

President, Central National Bank of Cleveland, Ohio
The

growth

business,
to

of confidence

in

the

future

outlook

for

evident since the election, is most heartening
businessmen and wage earners
throughout the nation.

This

so

confidence

stems

deliveries of

not

alone

from

General

vides

Eisen¬

panies

a

money, they undoubtedly would spend
age of it in research and development

count.

This

a

amount of

great percent¬

onj their

own ac¬

probably would ultimately fufn out to be of

great benefit to the armed services themselves.
The outlook for 1953 for the aircraft
industry is con¬
tinued production at very
high, near-capacity, levels for
both military and commercial
airplanes of all types.
This prediction could
only be invalidated by a very sig¬
nificant change in the international situation.




a

dynamic

more

leadership

provide

a

in government
balanced
economy

that is both free of governmental
strictions and more immune to

ternal forces

re¬
ex¬

resulting from changes

in international relations. The
adop¬
tion

of

a

slight reduction in the

is

debt

in

months

recent

disturbing factor.
It raises some question as to fu¬
rate of growth of consumer
spending.
While the

a

ture

debt

cannot

proaching
sity be at

be said to be dangerously high, it is ap¬
level where further increases will of neces¬

a

reduced rate

a

in keeping with increases
^"•
t"

more

in net spendable income.

•>•.-.*

-

'

Retail
inventories
of
consumer
durable
goods are
again increasing but currently do not present a serious
problem. A continuation of the trend could bring about
correction should

a

loans

consumer

ease

off.

Corporate earnings and dividends should compare
favorably with 1952, particularly if the Excess Profits
Tax is allowed to expire.
The dominant factor

is

increased

confronting businessmen this

year

competition.

The necessity to eliminate
paramount throughout industry and gov¬
alike.
Thrift will again become a cardinal

will be

ernment

principle among individuals.
as

virtue and

a

our

Savings will be regarded
investment in the future security of

an

freedoms.

r

•

CRAWFORD

well-thought-out

defense

The

Reserve

dence in

our

in

the Du Pont Company.

The widespread public interest
anniversary evoked was impressed upon us most
emphatically by the welcome messages of good will and
this

congratulations

throughout

inflation

will

be

year

for

1953.

indications
The

largely predicated
defense

that

the

to

came

from

year

source.

-

us

every
r

.

:

It may be trite to say that we re¬

gard the bright example of

first

our

century and a half as our guide to
future accomplishment. Neverthe¬

less, it is true
stemmed from

that

our

success

has

150 years

of trying to
recognize and fill human needs. That
is

still

objective

our

think

to

reason

in

successful

the

and

it

future

have

we

will

be

less

than

it has

new

Presi¬

been in the past.
Now

dent,

that

we

have

a

national Administration,
community would be

a new

the

business

less

than

human

if

it

did

not

have

C.

H.

Greenewalt

in govern¬
ment-business relationships, for hostility and distrust on
both sides have been a costly and dangerous burden to
hopes

for

a

new

era

the nation.
At the

y

same

time

we

must be realistic in facing certain

facts.

We know, for example, that the vast expenditures
already committed for our defense and foreign aid pro¬
grams limit the extent to which taxes can be reduced

the period of rearming for

national defense, it has never¬
the increases in corporate
have made dangerous inroads upon
earnings available for financing new-facilities. The en¬
larged demand for the products of U. S. industry cannot
be ignored and new manufacturing facilities must be
provided to meet this demand.
It should be remembered, moreover, that high pro¬
ductivity of industry is one of our most powerful weap¬
ons against inflation, as it certainly is one of our great¬
est assurances of peace, and as such must be encouraged
theless become apparent that
taxes in recent years

...

.

to the greatest degree consistent with sound business
principles. We believe that business and industry can
expect the incoming Administration to recognize. the
prevailing truth of this economic fact of life.
At the
same time, it is to be hoped that the long-deferred economy-in-government move
will be
initiated
without
delay.
For 1953, we in Du Pont are looking forward to an*
other year of high-volume production and continuing
demand for all product lines.
i

inflationary

pressures

and

make

for

System will go far in restoring confi¬
institutions.
Thus, the penalties in-k

all

\

achievement for

probably exceed 1951's total of $1,530,000,000 by $70,000,000. To attain this level of sales, average operating
investment was increased more than $100,000,000 over
the 1951 operating investment of $1,553,000,000.
Federal
taxes on operating income, in 1951, amounted to 23 cents

free,

present

150 years of

*

Company

Du

curtailed

and

the

havoc

wrought by deflation will be minimized through avoid¬
ance of further excesses in the
period ahead.
At

1952 marked

year

&

seem

sounder and more orderly
economy throughout this
period of defense build-up. The adoption of sound mone¬
tary and fiscal policies under a free and independent
Federal

GREENEWALT

in keeping with the ability

a

herent

H.

President, E. I. du Pont de Nemours

of the nation to produce will reduce

program

Loring L. Gelbacb

and^yailable

reasonable

basis for

Sound

to

permitted to make

the

will

generous treatment from the government in order

were

excellent

economy.

see the repeal of the Excess Profits
reappraisal of corporation taxes in general.
It is the writer's opinion that aircraft
manufacturing
corporations need a fairly generous tax basis and a

provide accelerated deliveries of new
military aircraft whenever the nation finds itself in an
■unfavorable international situation. If the aircraft com¬

his

of government toward pri¬
enterprise.
The psychological
effect inspires confidence and
pro¬

a

times

and

vate

Perhaps 1953 will

all

election

attitude

way as to automatically penalize the aircraft
although there was no intention to produce
this result on the part of the tax-framers.

at

A

during the coming year.
While it is recognized that taxes must be high during

LORING L. GELBACH

a

competent

avoided.

be

cost of living is anticipated.
The rapid increase in private

no

Despite the current high level output of machine tool
builders, fewer new machines are being built for peace¬
time industry or the nation as a whole, than are pass¬
ing into the over-age and obsolete categories. An in¬
creasing replacement need is building up just when the
signs point to a period of intensified technical and com¬
petitive activity in industry generally.

industry,

they shall be sound and

will bring in¬
bear but ample production will
competition so that further price

increased
should

increases

for machine tools has been subnormal.

result, the oft-prophesied decline in overall capital
expenditures in steel, metals, chemicals, petroleum, and
mining should not affect buying of machine tools in like
degree. In fact, while American steel-making capacity

One of the major factors in the low after-tax return
is the unfavorable position occupied by
practically every
aircraft manufacturer in connection with the Excess
Profits Tax. The excess profits tax formula was set up

that

exceed 1952 levels.

may

to

pressures

in

result

a

materiel.

fairly

flationary

more

appointments to the Cabinet, but also
from the anticipated
change in the

Tax and

goods

consumer

Full employment plus increased wages

new

greatly augmented by

in such

duction of

have worked down their backlog of defense orders,
they have found increasing activity among non-defense
customers.
The need to improve product and to install

hower's

large

assurance against any rapid decline in plant
equipment expenditures.
Increases -in commercial
building and in public improvements should largely off¬
set any moderate decline in plant and equipment ex¬
penditures or in residential building.. Personal incomes
should, therefore, remain high and may well increase
this coming year as wage increases spread throughout
industry. With savings bonds maturities increasing and
with personal incomes high, retail sales as well as pro¬

and

ers

cial position of the companies themselves will not be too

the present

products is

waste

Ahead of the industry are some additional orders for
defense, and the volume of such business would be aug¬

earns

This

30%

around

log reached $1,460,000,000. This fig¬
somewhat unreal because an appreciable por¬

enormous

after taxes, on his annual sales
that the stockholders will receive

subcon¬

booking defense orders for machine
tools, the industry's reported back¬

Frederick V. Geier

backlogs.
The
purchasing methods, policies, and regulations of the
armed services, combined with, high taxes, are such that
over

industry capacity.

pany.

As

•

normal

varies

share expended

V-i-;;:JOHN-P.

extensive

is

output,

ization base are

high level of

a

and

output
Total

net

our

accom¬

was

largely through overtime

more

tools

equipment
amount it

plant and
times the

three

now

was

own

our

capacity,

in part by plant expansion,

tracting of parts and even complete
machines.
As
a
result, the year's

meeting the accelerated demands of
the defense program.
This has ne¬
cessitated very large investments in

j.

normal

own

virtually every commercial transport
and military airplane. Consequently

airplane production is regarded as a favorable factor
making for less inflationary pressure in the labor mar¬
ket.
The vast expansion in atomic energy with its ex¬
panding need for materials, electric energy and chemical

on

point

favorable
a

to

outlook

continuation of

good

a

for

business

business

is

high level of
spending and little, if any, decline in the high
a

Pont's
to

be

production
headed

for

and
a

volume

new

record.

of

sales

Total

for

1952

sales

will

for each dollar of sales,, and in.1952 they will be

more.,

Du Pont, like the entire chemical industry, is pushing
with new products and processes and the im¬

forward

provement of existing ones.

There is much emphasis on
synthetic textile fibers.
Foremost among these are pro¬
posed expansions at nylon yarn plants in Seaford, Del.,

Martinsville, Va., and Chattanooga, Tenn., and the

Continued

on

rayon

page

55

Number 5188...The Commercial and Financial Chronicle

Volume 177

Continued

from

side

reverse

10

page

natural

There

Canada Looks at

1953 Problems

our

of

resources

have

been

the

coin

of

our

and advantages.

people in
country who have advocated
some

we

the

over

receive

-

iVz

past

the United States.

aid

We have

been

buying large amounts of military
equipment from your country, and

paying cash for all
'

not write off the value of univer¬

such

The objection to almost

proposals

is

that

while

we

defense

and

iiculty
these
that

embarked

we

in

strain

burdens

new

imposing

on an

economy

full

appeared to be already

extended. We therefore introduced

policies, chiefly fiscal and

by

tional collaboration.
sal

While

we

do

collaboration

(and we have
active and constructive

played

an

role in

the United

ress

on

Nations)

universal

a

prog¬

basis

must

groupings where real progress can
Objectives of Commonwealth
be made without
Economic Conference
conflicting with
prejudicing our accepted basic
The Commonwealth
Economic
principles and ultimate objectives. Conference which was held in

or

-

While there has been

appointment

over

made

solution

the

in

international

dis¬

some

the

London last month made

progress
of

economic

cant

certain

beginning.

decided "that

problems,

The

stantial accomplishments. The ef¬
forts of the peoples of Western

themselves

our

and

in

tective

shell, but to improve

our

always

as

a

whole, and to de¬

frustratingly

groupings.

The

NATO,

countries

GATT

flexibility and adaptability in the ating
economy

be

this end

To

the
and

in

examples

the

the
of

Commonwealth,
comprising

countries

Colombo
these

cooper¬

Plan

more

are

limited

greater than

before.

ever

have the basis for

to

approach

a

trade

arrangements.

portunity for

We

and

tries

higher taxes (with

the

which

will

of 'Trade not aid' and will

op¬

Continued

initiative.

on

taxes on

used

spending), higher in¬

terest rates, consumer credit

trols, and
bank

of

We

also

used

special device to restrain less
sential

forms

of

capital

,4

con¬

significant tightening

a

credit.

a

es¬

/"

ture, by deferring for a four-year
period the right to charge depre¬
against income for tax

all

on

new

New

assets

ac¬

to

Jersey, the Crossroads of the East, continued

essential

types

of

invest¬

importantly during 1952. This growth

grow

quired after a given date, with
-exemptions from this rule for the
more

J\few ffe'ibetf in 4952

expendi¬

ciation

purposes

en

.

can

be measured in increased

population

...

in the

ment.

As

result

a

these

of

measures,

together with the remarkably
.rapid expansion of total produc¬
tion, we have carried through the
current stages of our defense pro¬
gram as nearly on schedule as any
other country, without undue in¬

As the inflationary forces

itiation.

able last spring
to withdraw all the special con¬
trols on coftsumer credit, and to

.subsided,

give

we were

tax amelioration;

some

weeks ago

two

and

factories and

shopping centers

new

addition

direct

to

New

Jersey Turnpike

new,

greater

other

defense

have as a matter of
policy been giving special encour¬
agement to basic economic devel¬
opment projects that clearly
strengthen our defense potential
Sn relation to our North Atlantic

.

What

can we

.

pretend
New

to

be

encouragements.

other

and

that

earlier

said

we

are

definite pattern.

fered

areas

..

.

and in

the

many

is

has been established

on

are

of¬

at

the

men

a

specifically

consume

we

but the growth of

The advantages which

Crossroads of the East

imported.

therefore, vitally inter¬
the
development and
maintenance of healthy economic
conditions
and
reasonably free
are,

•and

as

in the development of

the residents and the business

to

produce is
exported and nearly one-quarter
We

.

com¬

Jersey in terms of industry, commerce, resi¬

country that lives by foreign
trade, that in a normal year nearly

ested

.

a necromancer,

a

all

in the

for the future? We do not

expect

dential recreational

of

...

important activities throughout the state.

projects, iron ore, oil, non-ferrous
metal expansion have all received
special facilities in steel alloca¬

one-quarter of all we
i

industry

industrial terminals

'Community. Hydro-electric power

I

plants and

pletion of improved highway facilities, such

programs, we

tions

branch

in the installation of

...

research facilities for

new

new

capital investments.

future

In

new

withdrew the

we

special depreciation tax rules on
all

advent of

on

cated without

are

so

important and

so

the up-grade that progress is indi¬
question.

in

stable

trading relationships
throughout the world. More than

Public Service Electric and Gas
tinues

to

play its part

Company

con¬

citizen of this great

as a

three-quarters of our trade is with
the countries of the North Atlan¬

tic Community, but the

-one-quarter
*is

with

a

good

remaining

trade, which
America, Africa,

of

our

South

firmly convinced that New Jersey is

state,

place to live, work and play.

Asia and Australia, is of vital in'

terest to us both in absolute terms

'.-as well

in its regional and mar¬

as

We, therefore,

ginal significance.
attach

call

great

very

policies

and

If

importance to
that

New

likely to contribute to
greater freedom of trade, non¬
discrimination and convertibility
seem

«of

you

what

programs

the

want more information concerning
is

going

on

in

industrial circles

Jersey, write today for

brochure,

your copy

in

of

"An Industrialist's View of

the Crossroads of the East."
Public Service, 76 Park

Write Box J,

Place, Newark, N. J.

currencies.

The International Trade Outlook
Like all countries that

ily dependent
trade,
come

and in

heav¬

international
subject to much

upon

are

we

wider swings

are

in

our

ments

as

lor us,

uncontrollable shifts in de¬

a

result

of

sudden and,

mand for and in the prices of our

staple exports.
terms

of

trade

Our international
fluctuate

more

widely and react more sharply on
domestic-employment and in¬
comes.

K).

national in¬

balance of pay¬

our

This vulnerability to

shifts

in external economic forces is the




PVBLICVji SERVICE

Taxpaying Servant of
—

coun¬

balance

restore

emphasis

some

with

in the world
economy on the lines

currency

We have
a new

icies by creditor and debtor

now

positive

more

room

we

countries

concert

complex

mone¬

and make

economy

ior defense.

signifi¬

positive pol¬
adopted, both

icy can now be
by the Commonwealth

there have nevertheless been sub¬

a

Conference

a more

tary, to restrain the civilian sector
of

$5

other friendly countries, to pro¬
Europe and elsewhere, assisted by
mote expansion of world produc¬
We see
no
essential the help given by our two coun¬
and less real wealth and welfare. and slow.
tion and trade."
The Common¬
conflict between the ultimate ob¬
tries, have succeeded magnifi¬ wealth countries stated
It has always seemed to
me, and
that it is
jectives of universal cooperation, cently in restoring the physical
it is the
their aim "to secure international
policy of the Canadian and the practical progress that can
damage of the war. Production in
Government, that the sensible way be made within more limited most of these countries is now agreement on the adoption of pol¬

we get.
upon this
to meet this economic vulnerabil¬
build-up in 1950,
anticipated considerable difp-'1 ity is not to withdraw into a pro¬

When

rapid

be substantially
sensible interna¬

can

fluences.

all

from

ternal shocks
moderated

years.

mutual

no

velop its overall health and
strength.
We believe, too, that these ex¬

various devices for insulating our¬
selves against these external in¬

they might partially offset some
It of
th^e unpleasant jolts they
should not be necessary, but it
would almost
invariably result in
may be, to tell this audience that
less production, less
development
lion

(335)

a

Great State

on

by

pro-

page

57

The Commercial

C5

and Financial Chronicle...

Continued from page

leads

54

near

"Orion"

acrylic

filament yarns.

already begun for a new $5,000,-

Site preparation has

000 textile research laboratory, while other new additions
to

our

research

of

the

Grasselli

the

include

facilities

of bank capital growth, and in the

in percentage

Chemicals

Stine Laboratory

dedicated

Department,

less

for the Haskell

than three weeks ago, and new quarters

increased from

decade

ending

producing states, and for several years has been the
number one state in production of cotton per acre, with
last year of about 746 pounds per acre. An¬
recognized is that Arizona has

average

Laboratory for Industrial Toxicology which will be com¬

other factor not generally

few months.
Construction will begin early this year on a plant for
the manufactuie of "Mylar" polyester film, a new prod¬
uct with distinctive properties which appear to make it

the

pleted in

a

suitable for

industrial uses.
construction force at the

variety of

a

new

Works

our

South

in

Carolina

WILLIAM X.

has

reached

Union, and

the

operations have as¬

lumbering

our

behind,

here, they do not

come

resulting labor and

the

and

It is

professional pool is of extraordinary high caliber.
for

GREGORY"

skills

their

such

reasons

state

this-that the naturatresources of the

as

Coal in large

undergoing the closest scrutiny.

are

President, Easton-Taylor Trust Company, St. Louis, Mo.

quantities has been discovered; uranium is being mined,

C

We

are

dition

approaching 1953 in the most prosperous
the
country has ever been in with

con¬

that

unending search for oil by major companies is going

an

the
on,

improved

and

new

methods

agriculture

con¬

are

psychology that it promises £ven greater things, hut in
my judgment there are many possibilities for t^oubi* in

stantly being developed, and more and more people are

situation

constantly finding it both profitable and pleasant to do

the

for

the

coming year.
Of course any all-out war would
increase inflationary forces rapidly

ajnd precipitate what would seem to
be

good business for the duration of

the

for

and

war

period thereafter.

a

There seems to be
tion that

that

My
will

Russia

compunction
that

feel

with

war

future.

near

at

Russia

in

the

feelings

own

attack

us

are

without

anytime when they

they have

in

creased by

While

uing plan, to
world.

William L. Gregory

do

us

and

ill

is closely

economy

with

we are

the

elements for

fessional

of the nation

prosperity

general

confident that within

a

men

as

railroads

defense

plans, I believe that 1953 will show gradually
decreasing price structures, greater resistance, within our
civilian goods markets, and increasing pressure on the
credit structure.

We continue to have faith in too many

artificial controls and too much government management
of the

economy.
I believe that we have made and are
making sufficient mistakes within the government in the
handling of our monetary and fiscal policies to cause
some danger to our highly inflated credit structure.
Any

little

loss

of confidence

on the
part of the people, any
in our ability to consume, might be met with
definite repercussions within our marketing organiza¬
tion. Money, and particularly venture capital, will con¬
tinue to be tight, interest rates should advance during
1953 and artificial manipulation in
that market can

slowing

result

up

only in difficulties at

I expect
out

business to continue reasonably good through¬
up definitely in the Summer, and con¬
much lower level during the Fall and Winter.

Spring, slow

tinue at

a

C.

President, First NatT Bank of Arizona, Phoenix, Ariz.
The
year

Arizona

with

business

community enters the new
general feeling of restrained confidence. The

a

view is taken that there will always be

products of
mitted

our

that

economy,

prices

may

even

a

market for the

though it is freely ad¬
well

very

fluctuate.
To

present
day
condition
good, but it should be improved.

this

As

field of technological progress
closely associated with the Amer¬

ican theme of constant

rolling along
strike

last

with optimism

pioneers who not

befits

as

long ago first

so

aging

GUND

proven

an

tremely attractive magnet to

biles—will
level

be

of

tourists

of

great

ful,

senger

cars;

traffic

controls,

improved
The

and

ex¬

and

ticularly since many
eventually
buy
or
within

record.

note

that the

that
000.

within

have
their
As

few

a

of

a

the

located
annual

past

payroll

the

is

in

128

new

excess

indus¬

and

area,

of

$31,000,expansion, employment has in¬
10,500 persons. It is contemplated that

result of this

creased by some

probably another 25 industries of measurable importance
will be located in central Arizona
during 1953. Most of
these operations are not
primarily defense projects but
will

be

of

a

continuing nature.

It is significant that this stafe leads the
nation
centage of income growth and in 1951 the total
23% from 1950. 1952 figures, when
completed,

pected

to

demonstrate




the

same

for

trend.

in per¬
was

are

Arizona

up
ex¬

also

Gurley

new

railroads

of

sort.

every

want

continue

to

they will if they

Of much

is

omy

billion

may

that

upon

program,

secure

One

of

the

the

for

employment of a million and onepeople; railroad purchases aggregating three
dollars; and taxes of one and one-quarter billion
.

law

stands,

tax

expires

removed

And

31.

52

to

the

certainly

investment

more

individuals

and

amount

first quarter of

All these reduc¬

private capital

opportunities, to

say

of

more

nothing

their

own

instead of handing it over to the government to

credit

am

the
sure

budget.

down

cut

exists

evidence

of

Certainly the first approach,

will be adopted by the incoming Ad¬

is to

to

Federal spending.

on

A

that this can be done

show

of the

more

than

necessary

functions of the

To give just one example, in a Congres¬
last

Senator Douglas listed

year

$3 billion of possible savings in the military

budget alone through "eliminating waste,

excessive over¬

procurement, and

increasing ef¬

in

overcharges

head,

not

businessmen

minimizing
are

difficult

the

entering the

problems

year

new

central

of

source

a

planners

shculd

system which has
scale of living the
the

people

complete

are

wonder

to

desire

conferred
world has

why

me

on

junk

to
our

ever

ahead,

with renewed

faith in the outlook for private enterprise.
been

It has always
any

the

group

of

economic

people the highest

known.

Now at last

turning aside from the long road toward

government

domination

platform

of

the

high

tariff

bar¬

of

this

pro¬

can

best

be

of

our

national life.

within

living

con¬

by the
its in¬

by the Federal Reserve
continually increasing the
Federal

of

With

George

bank

Reserve

H. F. Hagemann, Jr.

Humphrey

M.

as

Secretary of the Treasury, with W. Randolph Burgess
charge of fiscal policy and debt management for L.e

in

Treasury,' and with Joseph M. Dodge as Director of the
Budget, I am confident that tfie new Administration will
face up to

the financial facts of life and not permit this

continue down the easy-money, managedinflation road to ultimate disaster. Already an
important start in the right direction was taken in March
of 1951, when an accord was reached between the Treas¬
ury and the Federal Reserve Board attributed "to Wil¬
liam McCh. Martin, Jr., as a result of which Govern¬
country

to

economy

unpegged.

were

create

sound

to

of these

men,

be handled with
of

fiscal

problems and it will be

many

tion at
ance

policies,

however, will
delicate opera¬
best, but under the able and experienced guid¬

Returning

as

a

the way back to sound money will
much finesse as possible. The cutting

expenditures will
are

will

fare

not be popular and the fact that
absolutely necessary for the general wel¬

have

to

be

explained to the people. Bankers
educating the people in basic eco¬
nomics and this is a phase of our public service which
can

be

should

helpful

be

in

stressed in

1953.

Halting the credit expansion initially will bring higher
rates

of

these

will

interest but when
be

take every

ficiency."
While

in office.

a

Board, and the im¬

outstanding.

ments

knotty problem is how to lower tax rates and

balance

independence

expansion

Banks not
Gund

George

the

spend

the

Government

encourage

to

on

budgets, strict
reduction,
s ound

implementation

come

before the last increase.

would

elected

been

trolled at its source; namely,

tions would be most welcome to our tax-burdened econ¬

They

in large
Administration

will require calling a halt to
continued expansion of credit.

This

excise taxes drop back to the

and certain

47%,

depends

new

balanced
tax

unnecessarily

The

1954, the regular corporate income tax rate reverts from

levels existing

has

1953
the

its four-year term

upon

Administration

for

in

banking

embarks

gram

the

during

for

the steps which

riers.

Profits

the Excess

Dec.

on

it

as

and

the

As

HAGEMANN, JR.

provement of foreign trade through
the elimination of trade restrictions

next

on

takes

money,

Admin¬

new

outlook
upon

It may

reduction.

is

The

measure

Federal Reserve

questions

important

istration

FREDERICK

H.

economy,

latter

before

we

President, Rockland-Atlas National Bank of Boston

calling

of business activity

which will confront the

now

importance in our contribution to the econ¬
annual railroad payrolls; exceeding five

the

dollars,

The

whole have the

sional committee report

Phoenix

G.

.

are not unduly restrictive and they are afforded
equality of treatment to which the railroad industry

an

the steel
point

but the year as a whole
relatively good one.

a

government.

Hugh C. Gruwell

Fred

annually—

and better freight cars, signals and
rails, yards, shops; and new and

more

facilities

such cuts

will

four years

within

a

without injury to any

com¬

low

has acquired

somewhat

slacken

will

end of 1953,

mass

is

homes

the

as

pace

ministration,

par¬

them

build

the

stegl, and automo¬
operating at a high

outlook

The

which I

activities, it is interesting to

that

tries

of

Ever since

marked

half is less clear at this time.
be

still

borders.

our

Summarizing
mercial

visitors

dollars

sufficient materials,
especially steel for building new freight cars, and if
Government transportation policies under which they

is

largest backlog of unfilled orders on

But the

thou¬

importance,

boom

spend.

sands of people from elsewhere who
here each winter.
The con¬
matter

business

the early months; and

during

manufacturers

money

come

tribution

which

recovery

—construction,

allowing

has

its postwar peak.

at

This

upward.

seek

that

the

year,

enough momentum
to
carry
well
into 1953.
Three leading industries

to

climate

billion

a

paid for by the railroads themselves for more power¬
more efficient locomotives; more comfortable pas¬

ail

want to go forward with other segments
of our economy in a manner which is helpful and en¬
couraging to every one.

1952, the trend of business in general has been steadily

of

a

new

summer,

it

variety of factors, including agri¬
culture,
cattle
raising,
mining,
manufacturing, lumber, and finally

improvement,"

the railroads have made gbeat strides
with their postwar programs aver¬

Surely

the

enter

we

should be realized that this economy
within
our
state
is
based
on
a

attitude,

is

In

the
so

quarter

GEORGE

omy.

understand

plans

progress.

view the future

June 30, and
the 1951 increases in personal income tax rates will be

GRUWELL

their

their

Their

President, The Cleveland Trust Company, Cleveland, O.

Tax

HUGH

examined

and

steady growth. Arizona business and pro¬

of the hardy

should be

later time.

a

have

condition

billion dollars for the

settled in this area.

I-believe, make

false peace overtures to
agitate depression and deflation.
Assuming a fairly even continuation of our long-term
even,

rail¬

everyday life and absolutely vital
security in times of emergency,

difficulties in the Western World and
would

belief that the

essential to high standards

are

present

a

borders are the

our

all

possibly anthroughout the
They will hope for financial

y a n c e

In the further
roads
of

ca¬

been

is entitled.

allied

whole,

successors

n o

man,,

productive

operate

recognizing that Arizona's

sufficient ad¬

a

400%, farm income by approximately 600%,

to

immense

our

could
neither
have
achieved nor long endure.

this

of

evidence

further

a

retail sales by over 300%.

and

vantage to justify such-an attack.. In
the meantime it will be their contin¬

As

state.

our

claim, bank deposits during the past 10 years have in¬

growing convic¬

will not be involved in

we

all-out

an

a

business

•

distribu¬
without

system of

known

ever

pacity

for

they

reason

widespread

which

The fact is

and some in search of employment.

for whatever

leave

and

tion

people of Arizona come from all over.
Some
adventure, some for health, some just follow

for

a

that

Fe

The Santa Fe and other American Railroads approach

the

the sun,

Santa

System

the new year with a greater belief than ever
before
that the true basis of America's greatness is its Freedom
of Enterprise that inspired and created the most intricate

to

place of high importance.

a

The
come

Savannah
peak of
about 39,000.
Construction will continue on a major
scale this year.
Already a nucleus of some 2,000 of the
permanent operating force of 7,100 is on the site.
Meanwhile,

River

in

largest stand of Ponderosa pine timber of any state

sumed

Railway

Dec.

ton

an

President, The Atchison, Topeka and

$8,000,000 to $35,500,000.

31, 1950, our state
ranked a close second in percentage of population in¬
crease, with Phoenix showing a gain over 1940 of 63.3%
in population, and Tucson 27.1%. The third ranking city,
Mesa, doubled its. population during the same 10-year
period.
This past year Arizona ranked fifth over all the cot¬
the

During

F. G. GURLEY

capital funds

10-year period ending Dec. 31, 1951, bank

Richmond, Va. A new unit for production of
fiber staple yarn went into operation
at Camden, S. C., last summer, while a plant nearing
completion at Kinston, N. C., will produce our new
"Dacro.V' polyester fiber in both staple and continuous
plant

a

Thursday, January 22, 1953

f

urge

followed by

the

business

lower rates.

opportunity to strengthen their banks and to

their customers to strengthen

positions.

boom subsides,
Bankers should

We should \£ork

their

own

financial

closely with our'
borrowing accounts in this phase of the business cycle
to minimize the risks of doing business.
In
rates

even

more

conclusion, bank profits should be higher, interest
higher for most of 1953, and deposits and lo^ns

about the

The

same.

road

bankers'

job

More loan losses may

back
more

to

orthodox

difficult,

begin to devekp.

finance

but

sound

will

make

the

by

tve

page

5S

moves

Continued

on

yolume 177

Number 5188... The Commercial and Financial Chronicle

Continued from page 55

am

sometimes

how¬ believe that this mutually bene¬
ficial trade should grow and pros¬
per. We do not believe that our
down here. We are good, but not
modest exports of cheese or pow¬
quite that good! It is not the im¬ dered milk constitute a threat to
concerned,

ever, about some of the glowing
accounts
of
Canada
published

Canada Looks at 1953 Problems

,

mediate effects that

concern me—

stages and within rea¬ the part of all countries concerned. the best of us are not averse to a
time, create an effective It is no time for rash or ill-con¬ bit of flattery. What does concern
multilateral trade and payments sidered gestures, but it is, I be¬ me is the even more
unjustified
system covering the widest pos¬ lieve, a time for taking calculated opposite extremes of opinion to
risks.
sible area."
which you might be tempted to
There is much more that I could
I am sure there is a wide ac¬
go if at some time things do not
say, I have said very little about
ceptance of these objectives—ob¬
our fiscal policies and I have not seem to be going quite so well.
jectives which the Commonwealth
countries have again brought to enlarged upon the fact that we What we should always remember
have reduced our net government is
that each of our two countries
piefore out of a deep realization debt
by one-sixth in the past six
of the importance of establishing
is by a wide margin the best cus¬
years.
But I have tried to give
strong and mutually beneficial
tomer of the other. We Canadians
economic ties with
the
United you a fair and balanced picture
of how we are developing and
States and the rest of the free
what some of our problems are.
world.

gressive

sonable

During the months ahead

we

shall

gether

wis'i

a

program.

to

work

out

to¬

and

practical
In this the positive co¬
concrete

We
land
is

57

(337)

time to time.

help

.we

timism

But

if, with God's

have peace, even my op¬
would

the limits of

not.

our

care

advance

mark:

to

over

the

next 50 years.

of life or even to your
dairy industry.
your way

We

are

a

young

Fred Kaufman Opens

country; we

LONG ISLAND CITY, N. Y.—
expanding rapidly; we are
progressing in wealth and in wel¬ Fred Kaufman is engaging in the
fare.
We are buoyant and opti¬ securities business from offices at;
mistic. We have, I believe, recap¬ 35-21 Twenty-first Street.
tured something of the spirit Of
are

adventure

that characterized

our

Harold Johnson Opens

forefathers of the first Elizabethan

Age.

Of course, we must expect

to have

a

Harold Johnson is engaging in.
securities business from offices

temporary setbacks from at 170 Broadway, New York City.

have
is

our
problems.
Our
rich, but our geography

Great

difficult.

distances

and

rough terrain separate our prin¬
cipal centers of population and
vital.
During the difficult post¬
industry. This and our relatively
war years,
we have had ample
severe
climate impose upon us
proof of the capacity of the United
States for helpful cooperation and heavy economic and social over¬
head costs—in transportation, in
understanding. With the knowl¬
the quality of construction, and in
edge that we can count on this in
social services.
We are uncom¬
the future, there is every reason
fortably
vulnerable
to
marked
to believe that we can succeed.
changes in external economic con¬
In all these matters Canadians
ditions. When everything is going
realize that their vital interests
well, we prosper exceedingly;
are
deeply involved, and I can when events turn
against us, we
assure you that Canada will con¬
can experience sharp, though tem¬
tinue to play its part in con¬
porary setbacks.
tributing to progressive solutions
In the past American business
within the limits of its capacity.
We believe the time is ripe for opinion about Canada has tended
operation of the United States is

courageous

and positive steps on

SAN

to

swing even

violently.

more

I

FRANCISCO

STOCK

EXCHANGE

BIG BOARD
of the WEST

Molten "matte" from the reverberatory furnace

charged into
pany's

new

a

beta«g?

converter at Chile Exploration Com¬

Chuquicamata Sulphide Plant. The ? blister*

copper, Is beingy
shipped to Anaconda's Raritan Copper Works at Perth
Amboy, New Jersey, for electrolytic refining.

product of the converter, about 99%

there's

a

of copper

new

flow

in Chile!

On November 5, 1952, the first copper was

poured from Chile Exploration Company's
new
Sulphide Plant at Chuquicamata, Chile.
Thus was marked the beginning of a new
cycle of development of the Chuquicamata
Mine—the tapping of the huge reserves of
copper sulphide ore.
Open for two hours

after

the close of Eastern

Exchanges.

More

than

200

dually

traded

important market for these issues
after the close of Eastern

Over 150

securities
on

.

.

release of

.

an

news

Exchanges.

leading Western securities including stocks

Heretofore, Chile Exploration Company had
mined and treated only the oxide type ores,

producing in recent years about 360,000,000
pounds of copper annually. Now, with the
new
plant, the Company is beginning to
mine and process the sulphide ore under¬
lying the oxide ore zone. The Sulphide Plant,
begun late in 1948 to handle the increasing
amounts of sulphide ore encountered in the
pit, is built on a scale in keeping with the

magnitude of the ore body. From this multimillion dollar
project will come a steadilyincreasing flow of copper until its output
capacity, coupled with that of the existing
oxide plant, exceeds 500,000,000
pounds of
copper a year,
This

expansion of Chilean copper production
only one part of Anaconda's company-wide
expansion, improvement and modernization
program. Other phases of this program are
increased zinc production ... an aluminum
reduction plant... a new "open pit"
copper
mine at Yerington,
Nevada...increasing cop¬
per production from Butte mines... modern¬
ization and expansion of
fabricating plants,
is

AH

serve

the

metal-hungry U. S. economy.

the

same

purpose: more metals for
S2328-B

of the Hawaiian Islands.
The American Brass

A Preferred Rate of Commission is extended to

members of registered exchanges,

Sessionsi

—

approved

the N.A.SJD., and banks.

7 A.M. to 2:30 P.M.

Pacific Time.

AnacondA
COPPER MINING COMPANY

Company
Company
Andes Copper Mining Company
Chile Copper Company
Greene Cananea Copper Company
Anaconda Aluminum Company
Anaconda Sales Company
Anaconda Wire & Cable

International

155 SANS0ME STREET
r




SAN FRANCISCO 4,

CALIF.

Smelting and Refining Company

58

The Commercial and Financial Chronicle

(338)

Continued

from

Administration

are

substantial

56

page

imperative and should receive our

should be
accepted by all segments of our economic society for
there can be no true prosperity and lasting peace with¬
sacrifices

Whatever

support.

HANES

M.

President, Wachovia Bank & Trust Company,
Winston-Salem, N. C.

Manufacturing output, payrolls and employment,
personal income are at record highs as we enter the

and

Year.

New

As

ahead

look

we

bankers of this
to show

Unless

there

serious

are

international

or

area

medium

business

normal

is

It

be

expected

demand.

consumer

In

between

the

meet

good .year and

a

opinion

test

of

or

make 1953

can

tax

abuse

The

waste.

It

will not

be

prodigal

government

Businessmen should maintain

a

years

spending

and

faithful interest in

good government, and in sound national fiscal policies and
support in every way our Congressmen and other na¬
tional

leaders

as

economic

sane

they work to

the

return

nation

to

a

footing.
W.

Trust

Co.

of

confidence

into

1953.

The

confidence

that

is

the

national election in November of

our

last year when

General Eisenhower

chosen as our- President-elect.
This feeling of confidence continued
as the
Cabinet was chosen and his
advisors named.
The people of all
was

nations

of

the

world

will

be

as the United
States is led by
strong leaders. This strength of lead¬
ership will be reflected in the actions

the

United

Nations

in

and

attitude of other nations

as

troubled world.
W.

Hall

of

the

World peace

a

of

preparedness.

-the

These

state

sacrifices will affect all' of

the

demand.

do

not

If

the

increase

in

industry

central

are

this

of the

Prices

same

in

and

the

as

the

the

have the

the

failure

or

Eisenhower

confidence

of

will be eliminated.

most

industry.

It

is

will be carried
instance

an

John

Harper

j.

attempts

will

In

a

makes

definite than

it
a

seems

to

havej significance

practices

the

in

decision might disrupt

New

Year

I

with

and

new

Administration

like

and

will

tradition,

zest

has

run

our

concepts

of

recruited

the

this

is

policies to be

employed

expect

and

the

wilP be

no

excellent in the first six months of 1953 and

livery orders

who have spoken

require

many

months of

This backlog together with the normal

sales volume should make 1953
tion volume.
The outlook for residential

a

year

of good produc¬

appears

be

volume

substantial

central

school

during

additions

1953.

made

to

buildings in this




heavy
However, there will

several

area,

as

of. the

large

there will be

sense

to

and

businessman.

the

I

•

There

comes

from

instalment

an

on

{

good year.1 So

a

HENDERSON

of

the hotel

trends in

;

'

7 '

.

; V
/

industry must to a

all quarters the

which would naturally

business conditions

'*-? ;

'

nearly all

affect

hotel,

the
a

trend

industries.
industry there

towards

lower

a

has
per?

occupancy for the past
This trend, however, has
been more than offset by rate in¬
creases which have been quite gen¬
eral,
There is no visible indication

centage
six

of

years.

will

trends

these

that

altered

be

during 1953.
Because
on

a

of

wage

forced
for
L.rntsi"':.

y.cnuc. sua

increases, which

percentage basis have exceeded

rate increases, the

to

look

methods

to

industry has been

-in

many

directions

reduce costs.

the

These

installation

of

have

included

labor

saving devices, better kitchen

l^vouts, and better training of hotel

continue
1
In Spite of the declining occupancy and higher wage
scale indicated for the coming year, there is every in¬
dication that the better managed hotels and particularly
employees..

trends

These

duriAg-1953.

the

expect to continue to like Ike/
Lewis G. Harrimao

.

.

willundoubtedly
"

•

Jiarger hotel chains will continue the upward trend
earnings in the coming year.
.
7*

tfieif

of

spending can be reduced, some waste and
inefficiency eliminated, taxes adjusted, anjd that private
enterprise will be allowed to function with less govern¬

modernization programs in the major*
been on a . substantial scale. The
anticipated better showing of the industry during the
corilinsfe year will undoubtedly reflect the results of
theje ^improvements. Although in 1946, when the hotCl
industry was enjoying an average percentage of oc¬
cupancy of 93%, it was frequently indicated that a de¬
cline tb the 80% level would represent the break-even
point for the average hotel. Actually this percentage

ment in

hai

united opinion

are

of

a

that business will be

possible slowing

up

even

those

iin the last half

inclined to extend their timing! by six. to 12
Certainly the facts and figures of business are
encouraging and are bolstered by thje anticipation

now

months.
most

building for 1953

best in the medium-priced home
group. The market has
been
pretty well covered for low-priced individual
homes. Building for industry will not be on a
construction

make

miracles

understood

During 1953 we look for capacity industrial employ¬
ment for the people of this area.
There were some diffi¬
culties in
1952 as
industrial employment had to be
shifted from one type of
employment to another. Utica
industries are now well diversified and the forward
de¬
good production.

A forecast

said

can

repay

President, Sheraton Corporation of America

and
It is

methods

We

they are willing and

pay,

1

•

thanj done. There,
mistakes
and
disappoint¬

be-

ments.

area.

in file will

maintained.

high

up

the

now

be

very

the

knowledge! that

easier

better

1953 will also be a year of high

be foreseen,

the

the

on

can

Presi¬

new

from

is

r-"A

In

point of view,

important impact

as

has

of

the affairs of government.

much

when

need

lending

cash

loan.

experience,

industry to !clean

sober

they

/view of the high level mf general business activity

enter

that

conduct

reflect the

and

places of

of

rates

wi)l be business¬

capable businessmen the
dent

instalment

obligate themselves to

by general

businessmen

atmosphere and the

us,

cash,

j
that

notion

Unless all signs fail, the

years.

the

obtain

to

been

enthusiasm

an

business organiza¬

..large degree be based on trends established during re-1
cent years.
These-trends, of course, may be influenced

the approach, the

an

able

are

as

activity in business, and we expect our loan volume* to

HARRIMAN

believe most

lacking in recent

earning power, When
obligation, they

money

At Household these sound American,

Regardless of the outlook for business which I think

satisfactory,

their

lending service, just

Buffalo, N. Y.

very

is

asset

1952, it is not surprising that it was

far

more

but

of this

in

'

as

makes

In

oil

This

power

cash

payment of the

President, Manufacturers and Traders Trust Company,

is

we

serve

ERNEST

anticipate anything
healthy atmosphere.
G

that Federal

In the

business.

banking

_

history.

our

industry

impossible to

LEWIS

in

year

one

a high volume of applications for
loans,/to the granting of loans to a high proportion of
applicants, and to a steady volume of repayments from
custdrhers.
When
unemployment is widespread and
there;, is a feeling of job insecurity, fewer qualified
people apply for loans. The average working family is
unwilling to obligate itself unless reasonably sure that
employment will continue long enough to permit re?

have

quality of their herds during the past few
sales volume

chief

marked degree.

very

one-quarter

Thiols conducive to

of U. S.

general way, conditions look good for 1953, but
period of such marked readjustment fort the oil busi¬

a

and

one

basis the money which they need to meet emergencies.

a

ness

a

ablei to

oil business this year.

the

than

more

banks

employed at good

/■.

,

likely that most of these proceedings
through to a conclusion. In almost any

unfavorable

procedure to

of

some

1952

were

during hhrd times is a mistaken one. It has been our
experience that when business is active and people are

Department of Justice has many suits and
investigations in the works. Commissions are active in
change

of

as

Their

The,,

,

men,

Such matters

Byrd E. Henderso*

they, heed it.,

(3) The

to

end

tiiem

families

Administration
oil

mentioned:

be

they formerly did, largely as a result
purchasing power of the dollar.

tions turn to banks.

will

purchasing

$33 million

making cash loans to the families of America,

turn to

farm properties but to mechanize their
farm equipment,
increase the productivity of their land and
advance the

retail

customer

required to meet ah unexpected

of

in the successful operation of the

attempts

the

need.

it is too early to
tell just how the Tidelands problem will be resolved,
and when or whether the control on wages and prices

dairy

years.

before

years

operates; customers bor¬

of the decreased

"Iron Curtain."
the oils industry in

of

should

than

more

services

reactivation

success

during 1952. The farmers
have been able not
only to improve their

area

50

industry. There are many
wage earners who do not have enough savings or other
liquid assets which can be turned into cash in time of

curtail

to

good level and remain

a

armed

three

least

In

requirements
excessively, it is likely that the bal¬
ance will
swing from a seller's to a
buyer's market. This situation exists
not only in this country, but probably
throughout the world, outside of the

important types of agri¬

York.

expected to hold at

approximately the
of

one

New

of

in which it

their

impact being reflected in the taxes which
must remain high in order that
our economy may func¬
tion without
substantially increasing our deficit financ¬
ing.

Dairy farming is

over

Household's

serve

in each of these categories:

greatest

culture

required

largest amount in any

(1) The supply of petroleum prod¬
seems
to have caught up with

been

a

be-;
friendly'

doing business with us. The aver¬
age size of the loans made during 1952 was about $300.
The dollar amount lent totaled about $575 million, the

ucts

the

live in

offices

has

prompt,

in

must, during 1953, continue expendi¬

seal

public acceptance of instalment cash
lending has become widespread; the
company has expanded the territory

specific headings:

one

us

577

the provinces

total

At

(3) Litigation and Investigation.
Reviewing some of the problems
involved

Cor¬

help to necessitous borrowers

million families

tration.

tures

as we

this

industry

the

is

major problems facing

the part of the Government

oil

the

(1) Supply and Demand.
Change in National Adminis¬

1953.
The problems in Korea, Iran,
China and Europe must be solved and
because of these
world problems we
on

confront

(2)

strive

we

together to meet the problems in
Charles

under three

bene¬

fited

of

that

conditions

(2) While

feeling of the people in this area, is one that is in com¬
mon with the
people from all parts
of the world, which is the result of

all

HFC

notes receivable reached

row

indication of how things are
going to work out.
Readjustments are bound to occur

Utica

Utica, New York, in the heart of a rich agri¬
cultural area and a busy industrial
city, we look forward

The

symbol, of

a

It
the

prod¬

imports of petroleurrj will
considerable bearing on the future prospects.

From

with

local marketer of petroleum

a

Minneapolis,
Finance

throughout both countries.

at

1953.

producers

President, The Oneida National Bank and

Household

are

operate

now

Canada.

come

Co., Inc.

cient

Iran,

HALL

of

give intelligent views regarding the outlook for

Such factors

CHARLES

We

us.

we

in 29 states and in

HARPER

to involve wide areas
of readjustment. There is not suffi¬

Those who cannot

to correct 20

easy

to

seem

year

successful

and

to

business in

good and progressive period.
The year ahead will be one of change as national
pol¬
icies which have been followed for 20 years will be re¬
examined, weighed and in many cases revised by a new
of

be good,

1953,

of

celebrating the 75th Anni¬
versary of the opening of that small loan office.
'
i
The ensuing years have been kind

be

It is difficult for

a

Administration.

as

In

in

opened

was

years the total has grown
to over
$300 million/ There are many rea¬
sons fpr this remarkable
growth, but

ucts

selling may find a rocky
Those organizations which have
regain the art of competitive selling can

poration.

office

forerunner

(1878-1929), but in the following 23

in

road in the year ahead.
not lost

the trend of the na¬

the

was

but the cost of pro¬

will

JOHN

one.

Board, Household Finance Corporation

loan

a

high and that profit-wise industry will
show but modest gains.

vir¬

slow

a

1878,

which

feel in 1953 that this type of
level.
we look forward into
1953 that

President, Harper Oil

tually all lines, selling will receive
greater emphasis in 1953 than in any
Robert M. Hanes
postwar
year.
The
nation
has
reached a new high in productive
capacity and skillful, aggressive, and energetic selling
may make the difference in 1953 for many businesses

In

we

the outlook for sales will

sections of the economy where
increased
production
may
likely
overrun

Chairman of the

level off to hold the present

our

duction

some

fJ
B. E. HENDERSON

money

experience and

felt in the second half
may

credit available for
needs of our customers, both
is ample

small.

large and

ing the first half of 1953, but there
are
indications
that
some
adjust¬

spots

There

maturity.

the

the customer must

the needs of

as

to the program with payments scheduled for

be geared
all

available, but in these cases, there

money

reservation

more

tion's

strong ending of 1952.
Most observers do not expect any
change in the economic outlook dur¬

Soft

1953, it is the feeling of the
that banking deposits will continue

Commercial deposits are in excess of any
the records of our city and savings de¬
posits are at an all-time high.
Mortgage money is available to meet all normal needs
for home construction. Commercial properties are find¬

sales will

but

•

into

Instalment credits have followed

domestic
crises, 1953, in business
totals, should resemble 1952.
How¬
ever, activity may follow a reverse
pattern, from the rather slow start

ments may be
of the year.

stabilize.

gains.

ing mortgage

ness.

hopeful that the costs of doing business will begin

am

to

slightly under 1952.

is

the whole, another good year for busi¬

on

I

other period in

ROBERT

was,

be

necessary

are

out sound money.

1952

improvements and additions made to all of
The total volume of building will

the hospitals in Utica.

Thursday, January 22, 1953

...

...

business I believe the trend to mod¬

estly higher, earnings will continue through the year. 1
do not anticipate any major change in money rates and

Sincer the war,

ity

^ofl'hotels

now.

have

declined to approximately

78% for the indus¬

prediction of six years
of the leading hotels at present levels of ocT

try; yet, in spite of the ominous
ago, many

Continued

on

page

60

Volume 177

Number 5188

Continued

from

The

...

flommercial and Financial Chronicle

is

9

page

proof

at

enough. Their decisions,
crossroad
encountered,
kept us pretty well on the

future?
.

gi^eat

.

,

free

remaining

power has

both

economic

gained fabulously since,
respect to its own im-

with

mediate

.

past, and in

operating. To mention only a few

And

this

brings

"But,"

line

insists,
"it won't last. As we approach the
end of 1953 and enter 1954, the
economy will
run
out of juice.

today's leaders. *

the

old

refrain

comparison

The increasing emphasis placed

job protection; the drives for new and highpensions plans,
plans.
er^pensions
The, growth and extension
of

----v-sf
^ce
again^ the
prophets
s^mg the old song: "We will pjeted. No further impetus will
be> fine for■ thei next six to nine exist to sustain our growth. To the

Federal

mo"tns,

nations.

We

know

stop to

this —when

all

think of it.'

other

But,

platitudinous
to

seem

take

it for

we

with

as

things,

we

granted.

We

and

social

state

*

'

legislation. '

about

Guarantees of bank

not

yet,

economic

even

all

vitality.

We

smug about it. Worse

too

often

of

many

home

can't

mortgages.

Guarantees

us

quite believe it is true nor
that it can continue to stay true.

ment abroad.

We

after

obsessed

are

that

there

with
be

must

lurking around the

the notion

bogeyman

a,

tion,

prosperity, in¬
confidence and exhilara¬

were

easiness,

nas

come

bundle

a

a

great

of

un¬

fears

and

uncertainties, and a defensive, al¬
most desperate search for security.
Our

have

grandchildren
much

principal

origins

shouldn't

spotting

of

the

uneasi¬

our

Obviously most of it stems
devastating experiences

ness.

from
in

trouble

two

lifetime. We

our

are
psychically
by the long depression
and by the world war. Our chronic
jitters arise from an ever present

scarred

fear that
,1

one

both will

or

recur.

am an

economist, not a prophet,
my
colleagues to the
contrary, I insist that to be the
(So.ne

one

of

does

not

constitute

cation to be the
a

telepath.

qualifi-

a

other.)

Nor

am

And only he who

likelihood
initiative

I

can

though there
will

mid

7—

a

many

still

• *J

*

;

.

we
we

•

private

trade

contrary,

are

investment

private

in

new

energizing

It takes no

prophet to guess that

will be found. We are no na-

one

fare

Hisa«tpr" And

,

a

^—
maior

lg^^rtvoe Xuld
us

not

the whole Western world.

energizing factor will

What that

Continued

on

Fast

tax

These
lated

Thirty-first Year of Mutually Profitable Service

-

in¬

new

.

.

.

;■

Ml

are

shjft,

to

measures

calcu¬

<

*

ic

«

*

t

the

from

risks

shoulders

of
the
Individual, to
mitigate the rigors of competition.

Each

WARREN

be socially desirable,
specific problem it is
designed to solve. - Yet taken together thev significantly reduce
may

given

PETROLEUM

the

of

dynamism

CORPORATION

economic

our

system.
Let

^his

not

me

is

be

pitch

no

misunderstood,

dnma^d to turn the clock back

on

the whole bcHy of recent leg-

Hation.

The

these

measures

serve

the

they
the

very

were

of

effect

will

is blended into the

insecurity:

for

no

most

of

Warren's Natural Gasoline and Liquefied Petroleum
blended into

undoubtedly

for which

purpose

conceived; to cushion
on its downswings,

Industrial, Agricultural and Domestic life of America.

quality petroleum products for

more

Gas products are

efficient and economical

industrial, transportation, farm and domestic operations.

economy
.

'

\

Ful1 Security Means Stagnation
We must never forget, however,

continued

that

the

growth,

MARKETED

AND

PRODUCTS MANUFACTURED

long

path around, which such
cyclical swing? take place, is not
upward

made

con-

write-offs on

vestment.

retail

—

HEPTANE

NATURAL GASOLINE

NORMAL BUTANE

WARREN-T-GAS

ISO-PENTANE

PETROLEUM

WARTANE

HEXANE

NATURAL GAS

,

easier by the achievement

of security/Indeed, full security is

tantamount to stagnation. President Conant put it succinctly the
other day when he said "The keyhere. But the fears of depression, to Progress is competition."
the economic uneasiness and some
^ *s imperative, therefore, that
6f our choices of direction as we
key decisions be taken by men
(ass the next succession of eco- who are not dominated by considpomic
crossroads
these
are
erations of security. This places a
points on which I would like to Sreat burden on the businessmen
dwell briefly.
' "
.
of today — and tomorrow. They
not-so-cold-war,
gtnd how it might be allayed, are
subjects that cannot be included

ISO-BUTANE
And Other Chemical Grade

Light Hydrocarbons

—

\

4
Does

What about

the

Stalin

Inoie

Whatever the other
groups of the population may do,
businessmen cannot, must not,
seek safety. To do so is to forfeit the ri§ht to leadership,

businessmen

and

been

have

tnan

American

Dusiness

econ-

society;

of

impending de-

ana,, go.

consistent

•

Here

permit

me

a

digression

which I would love another time
to develop, more fully. It has to
a
vested
interest m bringing it do with the businessmen of toabout; hence their predictions are morrow, the men now attending
comprehensible as wishful think- our colleges and business schools.
Ing.
Much has been made of the
m
e have no such excuse.
security-mindedness of the postin

omists

OR COASTWISE SHIPMENT OF

chief

pression?
"
; it is disconcerting but true that
Only

EXPORT TERMINALS AND STORAGE FOR OVERSEAS

and must continue to be, the
innovators and risk-takers

are,

Depression Impend?

a

AND

Tne

Communists

Corpus Christi, Texas

Texas

Warrengas, Houston, Texas

Newark, New Jersey

Baytown, Texas;

GENERAL OFFICES

generation, of the widespread
apparent desire to play it safe,

ever
since the
of tne war, most of

closing days

propnets,

professional

war

like

this:

"Business

won't

.bad

for

the

six

months,'

but

next

there

be

to

are

r°U

high levels won't last; better
prepare for a downturn." Month

pur

month, for
nearly
eight
this has been dinned into

ears.

'ji'.There
tune.

are

Worries

variations

on

the

inflation, high
margins,
high
break-even
points, overcapacity,
.market • saturation,
price resist-

-.taxes,

ance,

over

narrowed

and government deficits

are

'woven
into
the
melody
with
.changing emphasis, but the chorus
jemains unchanged "Get protected
^gainst a downturn "
So

the

tactical

decisions

of

many businessmen have been deTensive. They, along with prac.

ticallv

all

other

elements

of

the

jpopulation,

have engaged in an
.^unprecedented scramble for secu-

,

leaders

need

have

no

at-

shame for their accomplishments.

Imosphere in which they have been

The record- our material advance,

Look

V-

for

a

moment

at

'




the

Building, Tulsa, Oklahoma

established
major re-

If Ibis is true, the fault lies less
with the students than with their
teachers; not with their curriculum, but with the spirit with
which they afe exposed to it.
Youth is not naturally cautious,
but students are bound to reflecttheir environment.
*
- R
would be an exciting thing
—and socially important—to lnfuse a greater eagerness for aaventure into the present college
generation, to send them out with
dragons to slay, charged with ambition, fully aware, but not
naively, of the essential romance
of business and of the stirring
challenge they face in making a
^ree economy work work to its
fullest, and ever-increasing caPacity. Then we would truly have
business leadership in the future,
Present

rity.

large,
to shun

some

sponsibility, to settlq down, and
venture little. Youth, it is said, is
dreaming small dreams.

serious

ent

i'years,

°f

corporation,

too

nine

.weak spots in the economy. Pres-

.

National Bank of Tulsa

to find a secure niche on the pay-

and

amateur, have sung the same re'tram.
It usually goes something

after

City, Texas

Mobile, Alabama

have

Nevertheless,

our

LIQUEFIED PETROLEUM GASES

Port Arthur, Texas

».

\

NATURAL GASOLINE

preaictlng depression in

America,

BRANCH

OFFICES
/

Omaha, Nebraska

Houston, Texas

Mt.

Mobile, Alabama

Louisville, Kentucky

Midland, Texas

Fort

Madison, Wisconsin

New

Worth, Texas

FOREIGN

TRANSFER

OFFICE:

REGISTRAR: THE CHASE
OF THE

Vernon, Illinois

York, N. Y.

London, England

AGENT: J. P. MORGAN

a—
deores-

for
not onlv
only national.
national, for
in the United States, but for

hp Hisastllr
be
disaster,

invest-

the

with

clouds

new

a

international

in

legislation
price maintenance, ""1

,

r'Accordingly the uneasiness
hected

storm

unless

—

factor is added.

•

nation

Fair

one

others
others that

are

but

gathering. Sparked by defense
spending in the continuing mobil-

cated

have become a mature

we

creditor

the

gauge
That is

war.

shall not seize, even

we

should.

truly

can

of

,.

sort

"Continued tariff protection, long

head the minds of the Politbureau-

Fraesidium

Defense spending will level off,
uie sieei
win be
ue
comare the
steel caum-up
catch-up will

reasoning. At minimum
of shake-put is indi¬

of

some

trade.

corner.

For with all this
stead of

of

Refrain

plant and equipment will be
cut sharply. We will find ourdeposits; of lzauon drive, and with a tempo- selves with too much productive
1
*
rary extra impetus as we catch capacity, consumer markets will

just can't continue to stay excited
are

Old

^

security

Price supports for the farmer.

our

The

on

will

be the order of the day."
On strictly economic grounds

with tne absolute growth of other

by organized labor

retrenchment

saturated,

be

longer."

to the impending depression—the
next crossroad to be faced bv

of the manifestations of securitymindedness in recent history:

the steel strike, ecoactivity should remain at

high levels until middle of 1953,
it
even
perhaps a few months is hard to take exception to this

back

us

after

nomic

path. But what of the

prosperous

.

up

each

have

>

59

(339)

& CO. INCORPORATED

NATIONAL BANK

CITY OF NEW YORK

page

61

60

The Commercial and Financial Chronicle...

(340)

Continued

from

page

The increase has

showing substantially better earnings than
in the period immediately following World War II.
Most of our own planning for the future is based on
the theory that our industry in particular and most all
.business in general is largely affected by inflationary
trends. There can be little doubt that monetary infla¬
cupancy are

tion

is

has been

substantial

discriminatory level of $10.50 was well-founded.
imposed an inordinately heavy cost on

to the

58

during the past six years.

It

the

of nearly half a million wage
severely cut the earning power of the in¬

and

earners

venture

the

of

nearly

have risked

who

people

400,000

capital in the distilled spirits field, not to men¬
indirect effect of the tax on the holdings of

investors

tributary and auxiliary fields.

in

personal opinion that this effect has been miti¬
gated by the fact that relatively little inflation has oc¬

volume

of

issues

new

the highest

was

since 1929, but as the preponderance was in bonds
than stocks and

as

such

rather

large percentage was subject

a

to

competitive bidding, profits were only a small portion
the 1929 total.
With so many of the prime names
having raised additional capital last year, it is doubtful
that 1953 will witness the same volume of successful
of

underwritings. It appears that 1953 will be a profitable
period for underwriters but somewhat below last year.

our

in

curred

chasing

that

portion of the country's potential pur¬
which
is represented
by
negotiable

power

securities

such

stocks

common

as

listed

the

on

Ex¬

changes, which is inherently a very large source of the
potential purchasing power of the country. This is based
on the assumption that a large portion of the wealth of
the country is represented by such securities. It is our
opinion

that

if

the advance
tion

seems

faced

the

security

have

should continue
Administra¬

new

started, that the country might be

both security

with

markets
of a

the prospect

which

to

dollar "inflation"

as

well

monetary inflation, the former, perhaps, over¬
shadowing the latter in its effect on business because
of the larger
number of dollars involved.
This is a
combination that could produce as its immediate effect
a great quickening of business activity.
It would, how¬
ever, be a danger signal, and substantially higher se¬
curity prices would make the market vulnerable to a
break which could easily start a downward spiral.
According to this theory, it would seem that the first
six months of 1953 would produce an accelerated up¬
turn in business, with a distinct possibility of uncer¬
tainty if and when the securities markets start dis¬
counting the possible curtailment of the rearmament

on

distilled

spirits

which the

was

the

tax

ticularly

T.

Heymsfeld

tax revenue lost

under the $10.50 tax

on

distilled spirits.

Important as these results are, there are other serious
by-products of the tax increase, including the dollarsloss

to

like

and

engaged

in

employees and investors in the alco¬

persons are employed by U. S.
men
and women are

another

360,000
distribution.

spirits

services

used

estimate

the

figures
of

amount

directly attributable to

are

impressive

an

toll

of

employees'

jobs

or

a

water

ometer."
of

branch

or

people with

another

of

the

an

In

1952

Stanley

last

business cannot be

shut

this barometer showed

Hiller, Jr.

mixed.

good

more than

increase

on

the

quite

were

from

transactions

on

1952.

Relative

the.

a very

to other

busi¬

prices
(commissions) have not been raised

"

$200,000,000.

erating costs, and volume
bv about

turnover.

But

reports indicate

it

is

consequences of

raising the excise tax




on

distilled spirits

was

down

The current year is

ing

trend

•

since

Election

Day

and

volume is currently at a very satis¬

factory level. Just

'

does

William

A. Hobbs

significant that Dun& Bradstreet

increased number of failures at both
wholesale and retail levels of the trade, compared with
the same period in 1951 and 1950.
"
It is evident that the industry's apprehension as to the
an

25%.

off to a good start as prices of se¬
curities have been in a sharply ris¬

profits of dis¬

tributors and dealers is difficult to
estimate, since wider
margins provided some cushioning effect for the reduced

lead to

not

make

is

as

the

one

tulip does

Spring,

so

first few weeks do not make a
cessful year for stock brokers.
dications

stock market will do better in

highly leveraged—i.e.

a

are,

however,

1953, and

that

the
suc-^

In¬
the

the business
high break-even point, earn-"

ings could improve substantially.

as

"

The other money making facet of the securities busi¬
new
issue market—was very profitable in

ness—the

will

doubt find

no

ways

of its nonproduc¬

some

a

honorable solution in Korea might well

an

definite policy with which to deal peacefully

with Russia.
On
upon

the whole, the business outlook is
the policies and performances of the

tration.

This

closely based
new

Adminis¬

first

change in 20 years promises to be
salutary, and while businessmen will follow events with
cautious optimism a spirit prevails of more sympathetic
cooperation. This should be conducive to better under¬

standing between government and private enterprise, and
should produce an atmosphere in which both can plan
and function to the best advantage.
EUGENE

IIOLMAN

President, Standard Oil Company

(New Jersey)

Nineteen

fifty-two was a satisfactory year from the
standpoint of balancing oil supply with demand, and one
in which this company's affiliates, as well as the rest
of the industry, again overcame the bulk of new oper¬
ating problems arising during that
period.
There are many indications that
the New Year will be
from

the

demand

standpoint
result

normal year

a

of
of

supply

and

the

job the
industry has done to provide a cush¬
ion in supply of most major products.
The disruption of supplies caused
by the widespread refinery strike
last spring, was, perhaps, the major
operating difficulty encountered in
as

a

addition

steel

nesses, there is over-capacity,

approximately 100,000 stockholders, may be estimated—
on the basis of a
study of the latest available financial
statements—from $52,000,000 to $103,000,000. As a
result,
100,000 stockholders have seen the immediate resale value
the tax

effort, but

in

major exchanges did not have

| The decline in distilling companies' profits, affecting

of

attitude

cabinet
arbitrary
business.

new

There is renewed hope of bringing the war in Korea
an
end.
This in itself will not lessen the defense

,

commensurate with much higher op¬

holdings reduced by

to

bugene

rtuiman

these

At this time next year a

missions

Moreover, the

the oil business in 1952.

HOBBS

will

the imposition of the $10.50 tax?

The effect

and

to

similar statement for
undoubtedly be appropriate.
Those firms which are entirely dependent upon com¬

ownership stake in one
spirits industry is

ChaVles W. Hoff

even¬

to relieve business of

to

this

Then, beset
problem by the

and

shipping disputes, the in¬
minimized
the
effects
of

dustry

consumption affect these people who had risked venture
capital in the business during the 12 months following

of their

knowledge
means

signs

no reason

Earnings in the securities business in 1952

distilled

>

value for the tax dollar.

and off

on

definite

a

WILLIAM A.

followed

tive efforts, and will strengthen the incentive for larger
profits through greater economical production.

tap.

How did the decline in overall apparent

Decline in Profits

be

Partner, Clark, Dodge & Co., New York City

earnings.

about 400,000.

This
and

leveling-out period during 1953. I see
expect any change in this initial reading.

and

£j

neces¬

by lowering of the taxi bur¬
den, which in turn will mean lower prices to the con¬
sumer resulting in a saving which can be used for other
wants or invested for gainful purposes.
The chain of
events thus set in motion provides incentive under the
American system of competitive enterprise, and help3
to raise still further the standard of living.
The cabinet selections have received public approval,
and they support the feeling that we can and will obtain

we should at least be able to predict the "next
coming year" with this "business programming bar¬

1953

The number of

over

all levels will

habits,

unemployment or lost wages
the tax increase.
But we do

waste—whether

of the dollar without

This year's-ahead planning, to a certain extent, gives
the stability we, as a producing nation, require. Short
of all-out war, or a complete change of our buying

$10.50 rate has had a depressing effect on
consumption of legal liquor and it is a reasonable infer¬
ence
that when employment and payroll figures are
compiled for 1952 they will reveal that the excise tax
took

of

be finely aware of the handicaps which
controls and conflicting policies impose upon

However, on the ma¬
believe our economy Vvui
closely
1952.
Substantial

I

at

more

decline.

know that *he

hike

elimination

us

available from which to

We cannot

expect this to be accomplished over-;"
night, but the prospect has already j
given business a psychological lift. H

will

go

advertising, manufacturing and product design
which, in themselves, will act as a shock ab¬
sorber against any major change of our country's oper¬
ating economy.

in

no

product sales will

programs

distilling, bottling and dispensing
spirits. Thus nearly 500,000 breadwinners, together with
their families, look to the production and sale of dis¬
tilled spirits as a source of livelihood. As of this date

some

motion

The

industry's direct
employment, therefore, may be put at more than 400,000
persons.
Indirectly, the industry furnishes employment
for an estimated 86,000 additional persons in
tributary
branches of production which furnish materials,
supplies
and

be

Big business planned for 1953 in '51
and '52, just as we are today planning for 1954 and '55.
We, ourselves, are preparing new models for these com¬
ing years. The makers of automotive and other long
range development hard items have already put into

Industry Employs 400,000
distillers

to

only follow this belief that
our "leveling off year."

can

ration of American

holic beverage and related industries.

Approximately 45,000

economies in government.

government or elsewhere — is
bound
to
increase
the purchasing

year.
Conversely, tank and certain
military and civilian wheeled vehicles will show sales
of a lower magnitude this year as compared to 1952. This
type of fluctuation should be expected, and when we
lead o. dealers' snelves being overstocked with certain
items, we would, upon investigation, find that there are
other products unavailable because of ever increasing
demands. These differences should be considered purely
as
the peaks and valleys of a "more stabilized" econ¬
omy. To the writer, they represent natural fluctuations
cf the leveling-off 1953 period. Personally, I believe this
balance or "leveling-off period" will extend well into
1954. The long range planning and "next year" prepa¬

consider

and-cents

basic foods will continue

show considerable increase

Fed¬

Administration in Wash¬

in

we read

military expenditures will continue.
Actually, in the aircraft industry,
military and commercial sales will

Ralph

new

tually

majority,

parallel

line taxes, real estate taxes and cig¬
arette taxes, in order to make up the

accruing to

revenue

The

ington will find enthusiastic public
support Of its purpose to bring about. !

the

jority,

the latter, are forced to
stepping up the tax rate in
other fields, i.e., income taxes, gaso¬

At such

deliveries scheduled well into 1953.

sarily proving deflationary. We hope *1
that greater economy in government *

into

eral and state governments, but nar-

through reduced consumption

appreciable increase in tax

Certainly

difficult to calculate is the eventual
both

realistic $6.

that withdrawals would

1953 will be

had to pay cost

as

confident

new year with local industries operating
capacity, and with industrial employment and
retail sales at high levels. Our local manufacturing is
diversified, with emphasis upon the basic industries, and
many of our companies are heavily
engaged in defense work and have

One cannot thumb through a business magazine, pub¬
lished around the first of the year, without coming in
contact with the "experts' " prediction of the future.
In

I

$346,000,000 more last year than
would have paid for the same
gallonage under the old $9 rate. More
consumers

are

we

"the biggest crop in years."

he

to

an

our

him

cost

level

than consumer goods will main¬
tain tneir relatively high sales level
established during the last few years.
Travel is projected in 1953 to hit an
all-time
high, and although farm
prices may drop a bit, production of

gallon in November of 1951,

Federal

tax

We enter the

at close to

power

than the gov¬

$1.50 in

consumer

The only solution to the problem, the distilled spirits
industry will continue to insist, is reduction of the pres¬
ent tax, not to $9, which cannot be considered a base for

President, Hiller Helicopters

anticipated and that it
further encouraged the resurgence of
bootlegging.
It has been pointed out also that
additional

drop in the bucket

a

revenues.

President, Union Trust Co. of Maryland, Baltimore, Md.

The

ernment had

the

without adding

Federal

STANLEY HILLER, JR.

has been noted that the tax increase
revenue

needed

to

the Federal Government.

much—rightfully—has been said and written about the
depressing effect the increase has had on business. It
returned less

spread throughout the whole economy, injuring literally
millions of people

be

HEYMSFELD

the Federal excise tax

Since

CHARLES W. HOFF

has been shown in the
first year of the $10.50 tax to demonstrate that, as the
industry foresaw, the depressing effects of the tax have
respects inexact, enough

some

reach 225,000,000 gallons annually, to the advantage of
both consumers and the industry, and that there would

President, Schenley Industries, Inc.

Taised from $9 to $10.50 per

in

a

program.

RALPH T.

No Added Revenue

short, while the available data is incomplete and

In

normal business operation, but to a

as

further

*■

prejudiced

It has

consumers.

opportunities

earning

vestments

tion

of

millions

of

tens

The total

1952.

Thursday, January 22, 1953

troubles

with

heartening dis¬

play of energy and initiative.
To be

offset but inventories
els by some 20
seven

now

barrels

million

exceed comparable

1951 lev¬

of

in

crude

oil.

which the

I

this

consider

industry

can

a

oper¬

efficiently.

At the
with

■

pillion barrels of refined products and

comfortable situation
ate

'

specific, strike-caused losses have not only been

]

same

time this condition is, of

course,

in line

the desire to have

ample productive capacity and
in an emergency.
For this pur¬
pose, the government and the industry felt it would be
desirable to attain a productive capacity of one million
barrels a day in excess of current demand.
The industry
should be proud that during 1952 it achieved this goal. !
reserves

handy for

There have,

use

naturally, been bottlenecks.

For example,

the tight situation in aviation gasoline continues.

How-?

that pressure should be gradually eased with the
completion of new facilities.
ever,

Aside from this specialized

requirement, the industry

has increased its capacity to supply major products some¬
what

more rapidly than the growth in demand.
For ex¬
ample, the industry is well prepared to meet the demands
of normally cold weather this winter because heating oil

Continued

on

page

62

•.tfi ttftf

Number 5188

yolume 177

w*

JkV»(»

WWW

The Commercial and Financial Chronicle

.,.

(341)

Continued

from

Five Join Bache Staff

59

page

Bache

And the choices made in 1953 will

have

How

can

business itself provide

profund bearing on the the energizing force to maintain
shape of things in the years that prosperity, and, more important
follow.
yet, continued growth?
As I see it, the major question
The immediate problem, as
a

is whether business will seize the
initiative
left in

whether

or

the

it

will

be

of government.

hands

Co.,

36

Wall

Theodore T. Scudder

Street,

W. P. Hoffman Co. Admits

Theodore T. Scudder, 64, one of
the
founders
of
the investment

Wm.
P.
Hoffman &
Co., Ill
Broadway, New York City, mem¬
counseling
firm of Scudder, Ste¬ bers of the
Exchange, have
American Stock Ex¬
vens & Clark in
Boston, died at
announced that the following reg¬
change, have admitted Wm. P.
his New York
economy. And, over the long haul,
residence, after an Hoffman to limited partnership in.,
istered representatives have been
an encroachment.

Uneasy Prosperity
be, and who will introduce it,
however, is a matter of choice.

&

New

York

New

York Stock

City, members of the

Arthur

P.

York Wall Street

in

office; Gale Hol-

II, in Chicago; Jack

Raleigh;

Herbert

I. in

A. Levinson
Abraham
the

tti
knows, is not the tech¬ Buttrick in
Boston, and Burton L. offices at 123
of production. That's
Harris in their Scranton office.
York City.
long - run
problem,
which
private enterprise long-since has
*

dpens

Levinson

securities

everyone

nical

firm.

Brooks, in the New

brook Hedrick

Cussons

the

extended illness.

added to their sales staffs:

ioo

one

iiT

is

business

ii-

ox

William

First Cleveland Company
L. Don Harris is conducting

engaging
x

City,

xr

Street, New

In

few

a

days

will

Adminis¬

new

a

take

under

the

firm

name

of

Cleveland Company.

the

First

1

cultural

production

sufficient

to

Ad¬ provide a standard of living sub¬
ministration believed to be sym¬ stantially higher than today, par¬
pathetic to individual rather than ticularly if military standby is
collective
solutions of economic applied to civilian production.
problems.

It

office,

will

be

an

in

staffed,

fcey places, by distinguished busi¬
They will be ready to

The problem to solve is that of
distribution, how
to
move
the
goods we are capable of produc¬

.give

ing; how to get them in the hands

nessmen.

to the counsels of their

ear

'colleagues still active in business,
counsels

if'those

make

for

sense

consumers

in inventory and storage; how
maintain
an
ever-increasing

flow,

•enterprise, to local groups, to find

comes,

their

solutions

own

•difficulties

if

—

those

national

the

sserve

economic

to

—

if

conducive to continued
.growth and a rising standard of
diving.
they

to

are

backed

matching desires with in¬
prices with costs, consump¬
production.

tion with

solutions

interest

of

instead

of
up

-the nation. They will be ready to
lend
encouragement
to
private

There
attack

are

two

major points of

upon

this

problem. Busi¬
them both

must exploit

nessmen

the

to

Each

utmost.

recognizes

that the term "market saturation"

.' 'But,

is
a
as 1953 wears on, and econmisnomer; the product of
problems emerge, as some static thinking. Over time, human
desires
are
:surely will, if business goes on the
fundamentally insa¬
defensive, * retrenches,
plays
it tiable. A market is saturated only
:safe, and pulls in its horns, we at a given moment, and at a given
«can be sure that government will
price.

•omic

Political

not.

from

pressures

a

.'population
frightened

almost pathologically
of
depression would

mot permit

any

administration to

stand

idly by. No political party,
-with the hope of reelection, will
fail
"to

take

to

avoid

strenuous

being

measures

responsible

held

for deflation.

Accordingly, if business fails to

government will again

•net,
•the

lead

;the

scope

-its

and

enlarge

take
more

even

increase

of its activity,

proportionate share of the na¬

tional

economy.

One

the

only

can

specific

toe taken, but, in

"from of

speculate

spending

as

to

that would

measures

effect,

another

•

continuation of the cold

even

as

war,

this might take the form of

a

extended

an

mobilization

-•

will soon be obsolete.
'Their replacement in the form of
weapons

guided
missiles
and
the
other
implements of push-button war¬
fare, all of which are very ex¬

pensive, would require vast

new

Federal outlays.

Full scale air defense would be

f

.•a

major

to

involving

undertaking,

have

keep

be

to

sub¬

with

pace

the

daily miracles of production effi¬
ciency.
(2)
of

improve

To

its

techniques

advertising

selling,

motion, to create

new

and

pro¬

salesmanship.

aggressive
You

gentlemen here today
in

a

are

marketing, with
its own techniques of salesman¬
ship. In a sense, therefore, your

role differs from that of

men

sell¬

The

needs

dustry.

In

shares

of

Any

the

one

•sufficient

outcome

in

Korea.

v
.

the

short-run

worries
who

i

.

the

problem

in

larger

you

are

economic

1954. But each constitutes
ponement

4J'©f

the

rather than

problem

of

a

the




a

dispensaries

...

other

its thirteen hospitals
its grade schools and

from

Spanish-speaking Republics learn the practical tech¬

niques of land-use... its land reclamation projects by which
swamp and jungle areas are converted to productive use
...

its

far-flung radio-communications

Americas

system

serving the

its extensive

tropical payrolls and policy o£
large scale local purchases in Central America.
Such

...

are some

of the factors involved in the

basic enterprise—the

Company's
production of bananas and sugar for

the markets of the world. All of them
which for

more

than

fifty

years

spell usefulness,

has been the criterion o£

sense,

salesmen

all

and

those

continued growth in the one
activity determines and is deter¬
mined
by
the
prosperity
and
continued growth of the other.

Accordingly, if all of us, here
and everywhere, who believe in
free enterprise will accent enter¬
prise in tackling the problem of
1953, we won't have to worry so

McKenzie Co. Formed

Kenzie Co.

Francis W. Welch

William Welch passed
which away at his home January 14th
at the age of 79. Mr. Welch prior
prophets

calamity howling

are

with their network of

...

the Pan-American School of Agriculture, where young men

and

of these could provide
impetus to keep the

^economy in high gear for a while
longer. As such,pea$i could meet

operations in the public interest

transpor¬

many

industry, your
of industry
interdependent.
Prosperity

activities
are

the

that

Kathryn B. McKenzie is engag¬
•V- Or some sort of Marshall Plan ing in a securities business from
for Asia, an area where our com- offices at 303 Lexington
Avenue,
pmitments
are
just beginning, under the firm nnme of K. R. Mc¬
"whatever

tation, United Fruit Company has developed

ing the products of American in¬

schools

for

Jand improved highways is already
-apparent.

mutually beneficial commercial

operations in Middle American agriculture and

specialized form of

and

great expenditure. On non-econ•omic
grounds
it
may
become
Y
necessary., And
it could require
mot only extensive warning sys¬
much about our freedom.
tems, defensive emplacements,
And our grandchildren, describ¬
and the deployment of defensive
ing America in mid-century will
;
aircraft, but also the dispersal
then find
it appropriate, thanks,
'jand relocation of key industries.
to us, to emphasize the prosperity
-v,,Or : a
great new program of
part of today's uneasy prosperity.
Ipublic construction might be in¬

stituted.

Hand in hand with its

larger

and

demand, to revive the nearly lost
arts of competitive selling, to use
contra-cyclical advertising — to
move
goods by intelligent and

present however,

developed:

easily

pro¬

justify it

gram. The arguments to
are

stantial

distribution
or

it

in lowered

efficiencies will

would

scare,

to pass the savings
prices. Distribution

distribution,
on

engaged

war

ingenuity is required:

(1) To increase marketing effi¬
ciency, to cut the cost of physical

some new

program

probably be devised.
Given

Business

Francis

to his

about
post¬ tive

retirement in

as a

solution Stock

1939

was

ac¬

member of the New York

Exchange

and

was

associ¬

private ated with Hayden, Stone & Co.

GREAT

WHITE! FLEET

General Offices: 80 Federal Street, Boston 10
Pier 3, N. R., New York 6 •

111

W.Washington St., Chicago 2

an

^ve|^erjt
business from oHices
15 Park Row> New York

from

Business has the greatest oppor¬
tunity it has had for more than proved it can solve, and more
20 years to demonstrate its ca¬
effectively than public bodies. At
pacity to take the lead in econ¬ the moment we have resources
omic development, to perform its and skills aplenty. As we ap¬
age-old innovating and risk-tak¬ proach 1954 we will have indus¬
ing functions.
trial capacity in place and agri¬
tration

61

1514 K St., N. W., Washington 5
•

321 St. Charles St., New Orleans 4

1001 Fourth St., San Francisco 7

62

The Commercial and Financial Chronicle

(342)

Continued

from

station

60

page

are

at

than .3%

The level of

rate.

1952

HOLMES

Americans

are

expected to eat slightly more red meat

1952, according to the U. S.
Department of Agriculture. On a per capita basis, this
promises to be about 144 lbs. per person as compared
with 142 lbs. in the past year. Pork
supplies are expected to be from 6%
to 8% lower but it appears that beef
than

1953

did

they

in 1952.

substantial increases in the vol¬
of

cattle

and

The numbers of cattle

levels

keting

Some
was

distress

in

absorbed

of cattle in feedlots and

a

build-up
corn-belt

tive abundance of

lower

well

a

John

Holmes

rela¬

afford

of cattle

on

farms

and

on

feed should

^significant increases in volume of cattle of all

Pork—While it

near-record

a

tion

occurred

corn

in

only

much of the

in '52, Bumper corn producthe Western corn-belt. In that

crop

same

are

for

a

increase in supply of commercial broilers, bver the

It

/ !
"!
defense program continues to
pace
the durable goods industries,
and the flattening out bf this
pro¬

as

noting that in 1952 asaWeflgctto
activities, we changed our name

expanded

Dynamics Corporation.
long time respected

•..

..•£*•

■

we

shall

continue

owners.-

WILLIAM F.

•

•

.

one/ barring-.unforeseen
either at horrie or abroad.

■'?

a

considerable

margin

four

new

Insofar

comparable

inasmuch

as

we

expenses
are

of

the petroleum

industry as
cerned, its results in the coming year
satisfactory unless changes in domestic
eign relations should react on business
manner not now anticipated.

plates, there Se.erfts.to be np deevident in - the demand for
heavy plates and pl&te Specialties/ in
which categories Lukens does most
crease

j

V>v

*

of... its

business.

The'capacity

it's 206-inch mill produces the widest
heaviest plates obtainable any¬
where in the world.

L.

C.

Huston,

for

heavy ' plate 1 production-" "industrywide/ has .'hot- been -increased las
rapidly as hai that for light-weight
nlateS. strip and sheOt, Liikehs With
and

<

!

"

The company does not expect
to
be record-breaking,'

Jr.

-

1953

despite

apoarent

continuance

military, and

a

of

the

government

spending for the
projected demand for plates and plate

The Company
a lessening of

some

in its product

mix.

of the

lucrative specialty items

more

-

.

The completion of additional facilities
will

help

materially

in

expanding

cialty production capacity
ing efficiency.

have

as

well

the
as

during the

year

company's

spe¬

increasing

operat¬

However, the early completion of these facilities Will
create

5 whole is
be

affairs and
conditions

con¬

quite
for¬

in

a

some

strain

on

the

company's

working

Capital,
capital expendi¬
Maintenance project and
the addition to the Sodium Hydride
descaling operations,
as

should

koftun¬

for light gauge

recent

going to

tankers built for ocean-going service.
as

demand

incidents

some

specialties in businesses-allied to the military program.
foresees high-level tonnages-but it expects

'

HUMPHREY

Operating results for the coming year should com¬
favorably with those of the last two years and our
capital expenditures in 1953 are expected to exceed by
years, particularly

in the

be

may

steel

-•

.

pare

,

While there
ing

to

President, Tide Water Associated Oil Company

spread the business over the
of the leading States in this
business,
increased travel is confidently
expected.

;
'

; Forecasts of 1953 business look good to Lukens Steel
Company. "With a continuing heavy volume of steel plate
production which seems evident at this writing,; Lukens
anticipates that its next fiscal, year ..will be another-good

our.

'i

HUSTON, JR.

President, Lukens Steel Company

:

>
"

LUKENS

CHARLES

We have1, however. Yename of Electric. Boat I

the

-

and-to




<

of

corporation,

„•

world-wide survey and market

Division," builders submarines, which are in fact "electric" boats!" We
believe.<that our new name hgs gained' general-;aCx:'-

share

one

new

*

lead

study 'of the..
applications of nuclear energy in the coming V
year.
Although 1952 was characterized/ by inspiring
achievements, I do not consider it a peak. In the coming
year we can expect further increases in sales, and by
insistence oh all possible efficiency, We shall
do/every-%!
thing possible to continue to increase earnings.for our.

evaluating the economy of the area, the continuing
high level of the tourist business has brought the
serving of travel needs to one of the greatest
single
sources of income. There has been no
falling-off in this
business, and construction of new facilities to serve the
travelling public has been of marked importance in 1952.
State and private agencies have
joined in efforts to
attract new visitors, to lengthen their
stay by suggesting

Portsmouth power station

.

of only 0.38%.. per; 100-million passenger, miles/ The
previous all-time record-of 1.1 in 1950 uwas bettered. J

British^ahcfcv

-

is .planned at $42,000,000 as compared with $48,000,000 in 1952. A substantial part of this budget is td be

/

-

.

during the past year, the best safety record-in
history of the industry.
Carrying approximately
24,000,000 passengers, they >>ad a pissenger<-fatality-rate

industrial

are

pany

.

the

the designation of our Electric Boat

this

pro¬

Serving these expected increases makes a continuance
improvements and new construction in the electric
utility business vitally necessary. During 1953, the con¬
struction budget of Virginia Electric and Power Com¬

-

the fact that the scheduled domestic airlifies have'estab¬

In furtherance of our belief that in diversification we-."
have the Soundest basis for the continued
prosperity of

the

grams, and because of their peculiar

Portsmouth, Va. The first 100,000 KW unit in this

a

may

ceptaiice.

con¬

of

people.

Re-enforcing this favorable attitude, pn their part- is

of
•

In

at

is worth

tained

is expected to hold the present
levels of employment in shipyards
and .similar establishments over
a

new

which

output

General

.

gram

used in the erection of the

The

greatly

The

attractions

was

for millions of American

quantity production

.

are expected to show
gains, and
accessibility of locations in this
area to major markets has in
great
part accounted for area-wide gains in

Already

.

lished,

electric motors " byn the " 'Corporation's
ElCctro Dynamic Division was substantially ; increased/
In addition to fulfilling many new industrial
orderk, the/
Division provided many auxiliary motors for the famous
superliner SS "United States."
i;-7\ x\.

ucts

year.

our

winter.
This mid-winter record traffic, I believe, can
reasonably be accepted as an indication of the fact that
flying is becoming the favored means of transportation

,

to the production of the v
21, a twin engine, high wing pressurized pas¬
senger
transport for local service in medium range
operations.
V
"

the

other

both

mid-winter

a

Canadair

already resulted in increased employment in the
synthetic fiber industries and their Chemical suppliers,
1953 should be a very satisfactory year in the
Virginia
area.
Other non-durable goods such
--as tobacco, food
and kindred prod-

cutbacks

improvement ih

States Air

We also commenced

has

nature, few, if any,
considered likely.

to

strikingly illustrated recently when,
day, more passengers boared our plahes
than
during any peak day during the previous two
years,
This, of course, was very unusual Since traffic
along northern routes normally falls off1 during the

our

assessment

expected upturn in textile operations, which

Jack G. Holtzclaw

.

looking ahead

-

President, Virginia Electric and Power Company

longer period.
Installations of
military establishment are also
tinuing their large construction

.!;

Safety, dependability, speed, comfort and other factors
Forces, and the rate of delivery will
are
contributing to build up support for cofnm&r^ial
We delivered the first T33, a twoaviation.;%
:
seated jet trainer, to the RCAF at
/'
year-end, and shall
:
Both within Northwest Airlines "and throughout the
shortly be making deliveries in quantity/ Quantity pro¬
duction of the T36 trainer-transport with twin piston 1. -industry, I look to see the current
year an outstand¬
^engines-will also begin in 1953.
ing one.
'
•

HOLTZCLAW

apparel plants.-

season.

available : seat-miles,

be increased in 1953.

i

i

are

volumes/ This
on

Navy

.United

same"

r

With the

problem,

Along our transcontinental routes within the United
States, wej have been generating some tecord traffic

Hopkins

'

.

G.

Jay

Electric Boat Division at Groton,

Canadair Limited continued

compared with the 1952

as

most; acute

domestic and international business.
John

F86-E "Sabre" jet for the Royal Canadian,

period last year. In '52 Americans ate 870 million of
these new-type birds, an increase of 78 million over '51.
A further increase is expected in '53.
""
JACK

We

During 1952 we delivered to the United
three of the new high-speed Tang class
Submarines, the "Trigger," "Troutwhile
commencing work on two target-ty^^suhmarines- for
the United States Navy and two modern submarines for
the Republic of Peru.
'
'
' r

15% to 20%

1953

our

will be eased.

the "Sea Wolf."

today that he Was 12 years
ago, he is eating over 55% more poultry.
This makes
poultry the real "comer" in the meat field. In the first
'53, the prospects

to

States

amount of red meat

six months of

aircraft

14, 1952, the President of the United States
Groton, Conn., shipyard to lay the keel for
the world's first atomic-powered submarine, the "Nauti- "
)us,: arid on July 19, we received an order for the second,

Poultry—While the average American is eating about

the arrangement with Eastern, we will;be
provide a total increase of approximately 30%
the seat-miles available in domestic service in the
to

Thus

June

On

came

crop

under

able

Connecticut.

decline.

the

and

»

is being held under government
price support arrangements instead Of being used as
feed. The probable result will be very little increase in
hog production. In other areas, crops were reduced by
drought conditions, and hog production will probably
area,

,

adding eight seats in each of the Boeing Stratocruisers.
; With the present satisfactory utilization and perform¬
ance
we
are
obtaining from our Stratocruiser fleet,

the year. Construction was commenced On
buildings to house the greatly expanded submarine de¬
our

Croil Huntefr

domestic

our

our personnel west of Chicago.
Northwest has also adopted plans to provide
4,000,000
seat miles per month under a
program of

summer of

sign department of

in

additional

tracts with other Canadian industrial

positive, it appears
unlikely there will be any significant upswing in theT
production of hogs in the year ahead. This is in spite

month

per

Lines

9,200,000

daily Lockheed Super Constellation service between
Chicago and the Pacific northwest. The aircraft will:be

firms during

is too early to be

Air

some

service.
Under this agreement, Northwest will
put into operation

in

our

Eastern

provide

seat-miles

more

in the United

of

with

will

operated by

Canadair
Limited, were expanded to 2.500,000
square feet, almost 60 acres. In addi¬
tion Canadair placed major subcon¬

grades to be dressed throughout '53 compared to '52.

of

which

manufacturing subsidiary,

into the early part of '53.

Current levels

we

proximately 13,000 at the beginning
of the year to more than 19,000.
facilities

a

volume during the year.
entered into an ar¬

cargo

States and Canada jumped from ap¬

Plant

beef, particularly of the intermediate
This condition is likely to continue

grades.

have

we

steps have already been taken
improve this situation; and the

Recently

our
as

actually

business potential than we
handle with the planes available.

and

productive capacity as
efficiency would permit.

panded
rapidly

mile¬

a

Northwest

effect should be increased
passenger

United

Our total employment

on

farms, but the result has been
and

JAY HOPKINS

year

mar¬

industry,

But

Dynamics Corporation

mar¬

should

which marks

aircraft—for

can

by the preparedness programs of the
States and Canada, we ex¬

were

widespread
to the

heavy fall

this

of

farms

added

incentives for

keting.

on

when

conditions

drought
usual

dressed.

calves

dependable.
itself

greater

backlog to a new record of ap¬
proximately $385,000,000.
In the year gone by, in order to
meet the demands placed upon us

Beef—During the fall of '52, there
ume

record

of

its

were

this year/
in
the

rangement

and mutton should be about the same

at

In

has been in many ways the most out¬
standing in our 72-year history.
In 1952 General Dy¬
namics Corporation attained its largest sales volume,
more than $110,000,000, while simultaneously increasing
past

more

anniversary

stone

Chairman of the Board and President,

This

and

more

the

Airlines looks ahead
confidently.
Our biggest problem ha3 been lack

to

Geheral

anniversary of the

step up the interest in aviation.

in

supplies will more than offset this
drop by a gain of 10% to 15%. Lamb
as

came

,

JOHN

fiftieth

quickly and in comfort nas
growing yearly as service be¬

Now

Company will grow as its service area grows.
has not been spectacular, because it has
been from an excellent base, augmented steadily and
consistently throughout the years. The advantages of
this area are great in material and human resources, but
even greater in the sound thinking of its people and the
high quality of its government.
growth

the

places
been

about 2,425

This

observes

brothers'
first
heavier-than-air
flight.
1953
Should find the public more air-minded than ever. Pub¬
lic acceptance of
flying as a means of getting to distant

The

em¬

aviation

Wright

consumption per residential customer for 1952
kilowatt-hours and is expected to reach
2,550 kilowatt-hours in 1953.
is

President, Swift & Company

in

As

$5,000,000

average

ployment should remain traditionally stable.
JOHN

CROIL HUNTER
Chairman of the Board, Northwest Airlines, Inc.

will be expended on the 91,000
hydro plant at Roanoke Rapids, North Carolina, to
Ultimately cost about $27,000,000.
The operating budget for 1953 is based upon an esti¬
mated increase in power output of about 10%, which
is in lineTHvith the increase in 1952 over 1951,
Annual

requirements^

the

the

KW

that demand may go up about

continues

business

II

additional

In 1953, indi¬
5%, providing
industrial activity continues at the present high level.
Earnings of Jersey Standard and its affiliates in 1953
may be expected to be about the same as last year if
the previous year's

above

cations

to be in operation in the early part

1953, to be followed

by another similar unit in 1954.
pending litigation in the Supreme Court of the
United States is resolved in favor of the Company, an

refined
goods and because transportation seems quite adequate.
Demand for petroleum products has been rising each
year in this country and abroad for some time and each
year the challenge has been met.
The total volume of

comprises most oi' the increase in inventories of

demand in 1952 in the United States was more

is expected

of

Thursday, January 22, 1953

...

available

tures

on

funds

the

both of which

new

are

are

withdrawn

for

Centralized

to be

ready for

use

in 1953.

Continued

on

page

64

Number 5138

Volume 177

..The Commercial and

.

Financial Chronicle

(343)

the benefit of credit and financial

Working Capital Problem Underscored

executives

expect

strain

a

Says

cerns.

be

to

Report of Credit Research Foundation, affiliate of National
Association of Credit Men, reveals many financial executives

,

who

find

the

reports
reliable indicator of the

a

problems they

expect during

may

currently

consumers

MINNETONKA

$750,000,000 on sets already
purchased. A more universal conowe

just released the results of a study

tributing factor to slower collec- Davis & Co.
tions will be keener competition.
The lessening military demands Two With State B'd &
will enable greater production of

according to Dr. Carl D.
Smith,
Managing
Director, refleets the opinions of 162 leading
executives

business

Monica

M.

has

Waldmann

been added to the staff of John P.

^
Mr'
er

Mtg.

Chemical

Guardian

of the

Wheels
&

Goodwin,

New York

Stock

Exchange, is this month display-

Chrysler Corporation's 1953

i11^

ing

jn

.

Hlgg"Snbegfu
J?ls £'n®ncia!
in
1920 with the National

24th of

a

series

depicting

the products of America's leading*
and listed companies, Walston,
Hoffman is, during January, play¬

£°™?anyJ .'?ve.swent ,ba^" tag host to Chrysler with

affiliate of the National City tractive

Bank.

He

syndicate

NEW

Coiporation,
.

career

(Special to The Financial Chronicle)

civilian and industrial goods, and

the

to

as

—Mrs.

on

Hoffman

prominent under- models
in the firm's uptown
writing investment bankers, has street-side window at 1370 Broadbeen elected Vice-President of the way, New York City.

BEACH, Minn.

tion, affiliated with the National
Association of Credit
Men, has

which,

members

Of Guardian Chemical
Arthur E. Higgins, long associ-

(Special to The Financial Chronicle)

that

mated

Founda-

Walston,

ated with many

With John P. Davis Co.

executives predict recession late in 1953.

some

Research

Credit

The

Investments

Higgins V.-P.

the year.

the working capital position of their con¬

on

A. E.

63

has

been

active

of

departments

an

at-

exhibit featuring six
the "turn over" color pictures of the

m

many iatest

Chrysler productions—com-

ULM, Minn.—Clare L.
to
higher
prices will doubtless result in Nelson and Lloyd E. Wright have *117r,.s'
ln y?c,e", y®ars
piete with models and background
the sharpening of the various been added to the staff of State originated, negotiated and placed scenery, both highly complimencession in late 1953 are less press- tools of competition. As a result, Bond & Mortgage Co., 26Y2 North many financing arrangements, re- tary. The exhibit is headlined by
organizations and some mergers, the creditable theme: "Since 1925,
be Minnesota Street.
irfg than the problems which will credit men
will frequently
largely on his own account.
17,000,000 customers have been

problems they anticipate in 1953.
'The report indicates that high
taxes and a possible business re-

arise

further

from

strain

on

resistance

consumer

asked

the

the

through

'sell'

to

has

me-

Below is a tabulation
of the problems most frequently
mentioned by the executives who
made their viewpoints known to
the Credit Research Foundation:
companies.

-

ST.

44

Taxes

39

Business recession

sion

35

Credit

28

Inventories

24

1953.

^

mild, and few seem to think that
it will do much harm to the econ-

of Business

11

on

the working

omy

in tight

The working capis brought about by
a variety of factors, among which
taxes play an important role.
"Under the Mills Plan, tax payments in 1953 on 1952's earnings

cash positions.
ital .problem

'

;

;":have again been accelerated. Un,
der the new schedule, companies
; whose capital positions are al-jh
^"ready
stretched thin have a great■'*
er
problem than last year;.
In
addition, the tax rates themselves
are high; and there is little likeli/

*

\

,r

hood
?>in

that

1953.

that

For

problems, many companies are
% finding increasing pressure
V brought to bear on them by their
»customers for
credit extensions;
the customers in turn are

hypochlorous acid in powder
(Special to the financial chronicle)
form'
and known
by the trade Kaap
1 LA GRANGE,
Ga. Gilbert
T.
mark
n.oRPACTTN.
Kaan is
s with Thomson & McKin¬
MrKinnflrnp

(Special to The Financial Chronicle)

Herbert I
Bache & Co.,
21
Congress Street, He was formerly with Wood, Struthers &
BOSTON, Mass.

—

Two With Waddell Reed
LOUIS,

Kansas

other

with
own

industries

the

industries

the

or

which

they do
business.
Prudent management will keep a
close watch on sales trends, in-

with

Kennametal

ventories, and local economic conditions. It should also try to encourage customers, whether reminute

More

and

is

Credit executives should try to

rtfiem

intrinsic value a year or ten

years

hence as it has today.

that

Unfortunately,

U.S. paper money

the

aloes not have

are

same

stable char¬

the right

since

acteristic—not

exchange it for gold was

power

of the dollar has

or more.

greater
set,

this

ing,

a

gold

invalidated—the pub¬
government

over

was

Consequently, there has

been extravagant

leads

redeemable

the

was

control

cancelled.

to-insist on-immediate

through

productivity, has helped off¬
decline—but it is not enough.

standard
lic's

declined 60%

American industry,

For—when

but should be carefully planned.

to

invalidated

the purchasing

1933. Since then

in

pressures can lead to abuses. This
de- situation is particularly apt to
^livery in order to avoid long- arise when J&oth suppliers and
( term
commitments. Also, more customers find their liquid funds
-.(active competition may tend to in tight positions. Customer borr ' create
an apparent necessity for
rowing should be carefully follarger stocks in order to furnish lowed, and any provisions regardimmediate; delivery on many dif-. ing acceleration of maturity in the
fj ferent types of items. Customers event of defaulted interest pay-

11

future

same

financial statements at
frequent ' intervals. ,, "In

statements

gold. Like gold

as

Kennametal has the

piece of

—a

constant—it

performance

dependable

as

quality is uni¬

known; its

are

form; its

study indicates.

analyzing

industries. Its character¬

and other
istics

more

plants, coal mines,

in metal-cutting

study of financial statements will
be a very effective tool in handling the credit problems of 1953
the Credit Research Foundation

obtain

multiplied production

material, has

scientific

super-hard

is

carbide which, as a tool

cemented

tailers, jobbers, or other manufacturers, to take similar steps.

customers it terms, for too frequently such

the

of

fear

whose

Incorporated of

report,

to-. service

it ih;. order

Company,

business

indicates,
particular emphasis on their

conditions,

pressure

some

&

Louis.

St.

company execu¬

tives in studying general

on Customers should be counselled
inventories against excessive "selling" of cred¬

be

may

ALTON, 111.—George M. Fischer
become associated with Slay-

credit managers

reason,

br';companies to increase

.* there

Mo. —Robert

City.

will

However,

1952.

or

(Special to The Financial Chronicle)

B.

udliktey and Glennon J. Martin has
& Reed, Inc., ton
are with Waddell

J -.

1951

either

With Slayton & Co.

(Special to The Financial Chronicle)

ST.

working capital into fixed assets
without precautionary * warnings
■-'.ralso be accentuated by inventory
as to what may occur as their lia^accumulations.
At present,
in- bilities (come
due.vi Inventories
L-ventories are believed to be rea- should
not increase unduly in
:sonable and in better shape than vague anticipation of higher sales,
•

14 North Court Square.

non,

presented, careful analysis should
be made of any trends that appear
from period to period. Customers
they will be reduced should not be permitted to switch

"Working capital problems

Thomson McKinnon Add

buffered

modified,

of

and the business community,

should join

In addition to norsales
and credit

seasonal

Pr4nnT nrii<=+

comprised

vidual companies may be severe.

Administration, states:

.pinch in 1953.

f

R.

with

Nevertheless, its impact on indi-

great many firms are already
undergoing problems of strain in
their
working capital positions,
and
more
are
apt to feel the

.i:mal

affiliated

Co.

!"A

,-i

ujl

^

believe that it will be

Profit

by John B. Matthews of the staff
of the Harvard Graduate School

V

Most

report

Higher operating costs 20
—-

Mo. —Thomas

now

Bache Adds to Staff

the

Marginal accounts

In commenting

;

business,

35

capital problem, the report, which
was
written for the Foundation

in

affect

Research

Slow collections

squeeze

is

question of how reces¬

will

39

is

producer of powerful
disinfecting and bleaching agents,

c+rppt
mpmhprs nf th'p New Vnrk
Street,
members of-the New York
and Midwest Stock Exchanges.

indicates
that many
companies predict a
recession
in
the
latter
part of

competition

Keener

:

the

h ni h

p

reparable damage to a company's
working capital position.
On

LOUIS,

Qi^son

served by the Chrysler Corp."

Guardian Chemical Corpo-

ration

(Special to The Financial Chronicle)

»

Working capital

The

Reinholdt Gardner Add

Such
a course may in some instances
be desirable. It can, however, be
disastrous in others, for too much
help to the poor risk can do ir-

dium of easier credit terms.

working capital positions of many

government spend¬

flood of fiat currency

increasing public

... everdebts, and heavier

and heavier taxes.
Return to

the Gold Coin

Standard*

;

is the

.

only practicable means to stop

wasteful government

spending, and

inflation. It enables

holders of cur¬

rency

their holdings for
necessary,when they

to exchange

golds coin, if

{>

:

ft; mers' own capital problems may
;,'.:in/;iiirjt. have the same effect on
supplying companies. ^ Many let.'"tiers indicate that collections had
begun to move more slowly in
late
1952.,'
Many
government
;f. agencies are • normally slow to
f^. nay
their bills; in other areas,
u., increases
in the number of ac,

J
!te

newer

useful

the

in 'gaining

'Break-:

h

tomers

in

expected

slowly
comes.

drought
to

pay

because

areas

can

of

Television

in¬

reduced
set

retailers

who hold customer paper may

overextended;

it

be

their bills more

has

been




be

rency

•

government policy.

important—it will give cur¬
the

dependability of basic

metals such as gold

and Kennametal.

be most
complete

picture of a marginal account. In
those situations where the credit
man

.

*"

Most

analytical^ techniques and

those infrequently used.
evenLcost analysis can

Works closely with the customer, the development of cash
budgets and statements showing
counts handled,/',as a "means of the sources and uses of funds can
retaining over-all /volume, have be most helDful in aiding the cusmeant
that
less desirable
risks tomer to understand his working
have been carried in many in- capital problem. Furthermore, the
stances.
analysis of alternative choices of
"Collections are apt to become action by comparing cost-savings
slower for other
reasons.
Cus- and the calculation of pay-out
,

,*)

lack confidence in

Pated' in:, increasing volume in s tatem ent s, credit -executives
1953.K When, this occurs, cusfor should
take
advantage of the

periods
tive

can

and

aid both credit exec

his

customer

in -bett

estimating its future."
A study on

problems

esti- Credit

is

credit and financial

annually

by

Foundation

for

made

Research

A*

:

.

KENNAMETAL
Latrobe,

\-%&&3s#2Ss*
1
igsttSA-**-:

Pa.

WORLD'S LARGEST

Independent Manufacturer

Whose Facilities are

Devoted Exclusively to Proc¬

essing and Application

of CEMENTED

CARBIDES

64

The Commercial and Financial Chronicle v.

(344)

Continued

from

62

page

cooperative plans developed on the local level to deal

>

.,

time the President's commission on the Nation's Health,

AUGUST IHLEFELD

the

under

President, Savings Banks Trust Company, N. Y. City

banks of the country have good

Hie mutual savings
reason

to expect

another gain of over

a

billion dollars

v.£ri deposits in 1953.
National income is at

record level, and

a

it is gener¬

ally expected that personal incomes
will be sustained or rise moderately
further in the new year. The Eisen¬
Administration

hower
to

policies

and

is

that

discourage

While

consumer

will

in

continuing strong demand for capital to finance
record plant and equipment outlays provides an op¬
portunity to savings banks to acquire sound corporate
with

reasonably attractive yields.
investments among savings banks

Interest in
is growing

steadily, both because of the higher yields they afford
favorable tax status of dividend

more

bonds

will

interest

a

number

savings
tax.

The larger part of the new funds that
savings banks
receive in 1953 will again be invested in sound

will

home

Nevertheless, with
construction

some

slight

decline

in

in

prospect, with amortization
receipts constantly increasing in amount, and with gov¬
ernment guaranteed and insured mortgages
relatively
attractive

because

of

fixed

interest

rates

on

such

loans, it is probable that the increase in mortgages will
not

be

as

great

in

as

the

three years of record

past

mortgage lending.
Next to

mortgages, United States Government bonds
constitute by far the largest investment of mutual sav¬
ings banks. A small decline in such holdings occurred in
1952, but savings banks will retain an ample portfolio
of government securities because of the

high degree of
safety and liquidity they provide. Savings banks would
be interested in a long-term
Treasury issue with a
yield of 3% as an outlet for some part of the new de¬
in many respects, one of the most
bank history. These institutions
comparable year of service and ac¬

HON. JACOB K. JAVITS

responsibility rather than virtuousity
domestic

affairs

to redeem his

the

President

or

will

see

an

era

of

improvisation.
do

his

utmost

campaign assurances; I therefore look for
a balanced
budget to take precedence
tax cuts.

over

tions

July

Even confident predic¬
Excess Profits Tax

that; >the

should

be

1,

permitted

must

be

to

taken

die

with

as

of

some

reservation as being based on the
expectations of continued maximum
returns from other Federal income

taxes, both personal and corporate.
There
more

will

unquestionably be a
conservative tendency in wel¬

fare

legislation, which includes so¬
cial security,
health, housing and
education. Yet, here too, I believe
that

great

efforts

will

be

made

to

enlarge and improve these activities
by the introduction of a great ele¬

Hon. Jacob K. Javits

ment of citizen and local
cooperation
rather than to restrict them.

So, for
example, in housing I expect there will be great en¬
couragement to private construction of cooperatives,
particularly multi-family cooperatives giving veterans
preference, and 'to real efforts with government assist¬
ance to enable
private builders to meet the needs of
the lower income groups.
In education the President
lias already indicated he favors Federal aid
for school
construction.
In social
security, I believe we will see

broadening and extension

a

to

deal

with

©lder citizens

inhibition

any
as

of

the

on

system, particularly
earning power of

the

condition

for their
receiving social
security payments, expansion of the opportunities of
the self-employed and removal of the
inequities affect¬
ing them and tightening of the security aspect in han¬
a

dling the Social Security funds.
In the health

field, too, the grounds of difference

pear to have narrowed.

he has

a

ap¬

The President has indicated that

deep feeling for health insurance




approach,

a new

perspective,
The

have.

not

It

business.

I

the

with

starts

therefore

see

Administration

Truman

confidence

the

of

budget

investment

and

other

this

in

deficit

fi¬

balanced

a

delicate

a

necessitate

that

It

is

problem

careful

plan¬

It is my opin¬

transition

without

be

can

too

important, of

enough
sound,

American

that
but

leader

ac¬

severe

a

our

the

as

the

of

course, but not

own

free

be

economy

acknowledged
world

must

we

strive to furnish leadership in work¬

ing out
It

ac¬

tively by American business in the technical assistance
which can change the whole foreign aid ap¬
propriations picture. This is perhaps the greatest op¬
portunity of the new Republican Administration. The
nature of
the Cabinet appointments shows great prom¬
ise particularly in this regard.

presents

of

shock.

did

the participation

and

our

economy

of

one

that

complished

islation in respect of reciprocal trade agreements, aid to
international currency stabilization, encouragement of

private

to

will

ion

great field for Federal leg¬

a

from

passage

and

supply, by
recognized, too, as a vital factor in the anti-Com¬
munist struggle, cannot be suddenly withdrawn.
The
Eisenhower Administration
starts, however, with an
which

given

effort to solve them.

a new

ning and execution.

asset

has

handling of the

facilities.

Joseph T. Johnson

a wholesome world economy.
only by doing so that we may

is

look

forward

defeat

and

program

to

peaceful

a

world

the forces which

of

now

threaten it.

Up to the present time we have been willing to turn
the job over almost entirely to our National Govern¬

I

ment, which, considering the American passion for free
enterprise, is truly amazing.

only management, but investors,
well, can do a foreign policy
job, given positive and high-minded governmental di¬
rection, unparalleled in our own and the world's history.

to

do

and the duty of private enterprise
to provide the risk capital necessary to
permit the underdeveloped countries of the free world
to exploit their national resources and
abilities, and it

A businessman's government

is

the

dynamic

define

which

include not

to

and

workers

American business,

of

power

salvation

farmers

the

of

free

as

well prove to be the
long as the term busi¬

may

world

so

is translated into the American axiom of mass

nessman

high wages and excellent working condi¬
spirit of freedom and cooperative sharing of

It is

end

tions

in

a

the avails.

This

know to

we

To succeed in

success.

it

freedom

must

with

the whole free

tion

upon

China,

of our

own

mission of world peace and
be a secret and be shared

our

to

cease

be the secret

world.

The

real

Czechoslovakia,

magnetic attrac¬

Poland,

the function

its part

duty

that

of

It

is

the

successful

and

government

come

real, to pull

so

about

if

follow

we

Yugoslavia will yet
point in the victory

prove

course.

be

to

of freedom

The

the

example of
historic turning

over

Communism

in

world.

our

O.

is

especially

true

also tend

since

the

For the past 30 days, the New York stock
market
has been saying that 1953 will be another good business
year. With continued heavy government spending, high

substantial

just past.

But I still feel that

in

I

sort of

look

for

New

with Russia.

war

will not get into a

we

Instead, the cold

the

business year as the

big "if" is

a

shooting

war

will continue.

war

the credit is provided—and it looks like it

as

A good auto year is

There

seems

be

to

likely.

air of confidence in

an

Nation.

our

President

Eisenhower

has

surrounded

in

Montana

a

during 1952 the livestock industry
by a drop in livestock prices.
during 1953, due to

setback

severe

Livestock prices may go still lower

the

1952, the demand for longpri¬
and

tion.

Here

pay¬

new

savings,

same

will—another million home should be built during 1953.
Indications point to considerable commercial construc¬

all-time

hand,

by the volume of

struction

long

suffered

high

State

our

livestock

has

population.

On

benefited substantially

the

other

by the oil

discoveries during 1952 in the Williston Basin in
Western

term money will be determined

marily

As

to

ment of taxes.

As

the

Naturally,

capable businessmen which certainly adds
support to this confidence.

"Mills

plan" will again accelerate the

JORGENSON

himself with

This

loans.

M.

President, Security Trust & Savings Bank, Billings, Mont.

to

be somewhat less than normal.
large income tax payments
which corporations must make in the
may

The

in

the

as

the begin¬
of this new year—perhaps due to the political
changes to take place as a result of the November elec¬
tion, and a feeling that these changes will be beneficial

of 1953, the seasonal decline in loans

may

well

as

ning

activity is expected to continue
high levels through the first half

ness

1953,

the

exchange

one

the money market, which
was extremely tight late in
1952, probably will be sub¬
ject to less pressure. The return flow of money from

contraction

off

determine

and trade barriers.

with Russia.

half of

partnership

economy. We must be prepared for competitive
world markets and the removal of all artificial

Year to be much

President, Mercantile Trust Company, St. Louis, Mo.

first

the

to

world,

After the first of the year

limit the

working of this
which will
our domestic,

industry

long-range soundness of

employment,

at

cooperate

Hungary,

from the Kremlin will

away

this

to

may
operate freely
American flag is honorably received.

Roumania and other satellites which make the Commu¬

nist threat

Government
businessmen

our

American

wherever the

production,

also reduce the pressure. Since busi¬

In both foreign and domestic policy I

Eisenhower

not mean immediate solu¬
tion of all critical world
problems. It does mean a new

nancing

circulation will add to bank reserves, and the expected
decrease in commercial loans will

U. S. Congressman from New York

In

General

partners

GALE F. JOHNSTON

complishment for their millions of depositors in 1953.

*v

of

hope, but it does

new

in these regional efforts on the
minimum basis required for maintenance, which is the
reason for economic aid to establish military production

The year 1952 was,
successful in savings
a

election

ties

posits they will receive.

look forward to

The

people

its

The

they will be liable for Federal income

mortgages.

JOSEPH T. JOHNSON

greater degree of self-sufficiency to the military activi¬

enormous

be

President, The Milwaukee Company

for the free world and
Communist conspiracy of

the

to

income.

of

banks whose ratio of surplus and reserves to deposits is
such that

less

counterforce

our

will

temper is to be expected in for*

same

as an excuse for stopping our regional programs
military security like the NATO or efforts to give a

of

effort

an

less restrictive
monetary policies in periods of deflation.
The policies which will be
followed will undoubtedly
be more orthodox than those
followed previously.

the greatest security

of

best

overseas

The

new

that the

Undoubtedly,

now

Iklefekl

Angus)

adequately served.

and the

program

Technical assistance and related materials

growing public appre¬
ciation of the great strength and liquidity of mutual
savings banks. In New York State, savings banks are
confident their authority to open branches will be fi¬
nally liberalized in 1953, so that needed savings facilities
can be brought to newer centers of
population not now

Tax-exempt

The

insurance

used

of

service, and

equity

a

But this is an objective. We actually must
have trade to supplant the aid. The slogan cannot be

sition among savings institutions by
the higher average rate of dividend

bonds

as

health

aggression.

savings
banks
have
their competitive po¬

improvement

made to utilize the
powers of the Federal Reserve Sys¬
tem to tighten credit in
periods of inflation and to adopt

solution.

highly controversial na¬
identified particularly
with
former
Federal
Security Administrator
Oscar
Ewing would appear to be in eclipse in view of these
tional

the

saving
intentions.
expenditures
are

constant

activities

terests

strengthened

the

R.

Paul

The slogan "Trade, not Aid" is a good one.
and the most desirable objective we can seek in the in¬

income, so that the presently strong
propensity to save will be sustained.

paid,

Dr.

will be made consistent with the
objectives of the Fed¬
eral Reserve
System.

I feel

rising slowly, they are not keeping
pace with the increase in disposable

Mutual

chairmanship of

System will exercise pri¬
responsibility for determining the supply, avail¬
ability, and the cost of credit, and the actions of the
Treasury relative to the management of the public debt

mary

eign affairs.

safeguard the integrity of the dol¬
lar, so that the fear of inflation will
not

distinguished

in which the Federal Reserve

Magnuson, has come out for government aid for local
cooperative and, group practice medical and hospital

developments.

committed

measures

needs and almost at the same

with the nation's health

.Thursday, January 22, 1953

North Dakota and around Glendive and
Poplar in East¬

con¬

borrowing
for
investment in
new
Gale F. Johnston
plant and
equipment. Housing "starts" are not
expected to decline appreciably from current levels, and
the expected decline in capital expenditures by business
undoubtedly will be small. As a result, any substantial
easing of interest rates in the long-term money market
is unlikely.
corporate

In the next 12 months the

Montana.

ern

into Billings,

Many oil

capital for this

States.

which

The

been

flowing
an

oil

area.

One dark cloud
condition

companies have

which city has all the earmarks of

on

a

exists

situation

favorable outlook is the drought
in a large area of the United
to be

seems

growing increasingly

serious and the present dry cycle could continue

through

Treasury will be confronted
problems. Each year a
larger and larger part of the public marketable debt is
becoming a short-term debt, and the incoming Adminis¬

livestock operator and the dry land
farmer, particularly
the winter wheat grower.
Drought seems to

tration will have to

business, too.

with difficult debt management

determine whether

1953 is the

de¬

sirable year in which to undertake the task of refunding
a portion of this short-term debt into
longer-term secu¬
rities.
The possibility of offering a long-term bond at
a

higher

rate

will

undoubtedly be explored. Since it
will be confronted with a deficit, the Treasury Depart¬
ment

will also have to

of the need to raise

consider

new

its

operations in terms

money.

as an

effort to establish

a

freer money

market

That

summer.

would

add

to

the

problem of the

dry

We
and

I

a

am

are

a

great nation with

sure

there

the

are

large

the past decade.

the many

in

our

year.

in

come.

population

overlook the effect

the

of

without

So for 1953
its

a

worries,

Don't

during

pensions

compensa¬

number of dividend

potentials.

Not

great and

are

great things to

increase

Don't

contribute to

business

many

up

great number of wants

Potentials

pension plans—unemployment

tion—the increase
all

a

high standard of living.

overlook

in

Monetary and debt management policies of the new
Administration will also be important factors in influenc¬
ing the money market in the current year. It is not to
be expected that radical changes will take place immedi¬
ately because the new Administration undoubtedly will
move
cautiously. Its objective, however, probably can
be stated

next

checks

pretty good

however,

or

high taxes.

Continued

on

page

6$

Volume 177

Number 5188... The Commercial and Financial Chronicle

<

ding

by

Public

$22.50

Utility Securities

a

investment. banking

an

and

group,

sold

share.

to

the

public

New York Stock Exch.

at

U/

,

.

-

35

Transfer of the Exchange mesi-

'

bership
R^e to

r.

Weekly rirm Changes

It is currently sell-

(345)

of

the

David

late

Edward

T.

will

be

Coleman

ing over-counter around 32%, and - The New York Stock
Exchange
pays
$2
to
yield
about 6.2%. has announced the
following firm
Earnings for the 12 months ended changes: '
Sept. 30 were $2.91 per share, ref. w. Ludwig will retire from
fleeting a dividend payout of 69%. limited
partnership
in
Bacon,
The price-earnings ratio approxiStevenson & Co. Jan. 31.

considered Jan. 22.
Transfer of the Exchange membership of the late Howard Drummond to Hyman J.- Ross will
considered Jan. 22.

Mining Company (a subsid- mates 11.2. President G. A. DonFerdinand
W.
Strong
retired
of U. S. Steel), Pickands aid, in his recent talk before the from partnership in Davies & Co.
utilities
in
northern
Wisconsin Mather
&
Company,
Oglebay New York Society of Security An- Jan. 2.
*
and Michigan, with annual rev- Norton &
Company and the Re- alvsts estimated 1953 e a rn i n e <?
Charles D. Halsey will withenues of about
$5.5 million. While public Steel Corporation.
,,'
cu0„oc!
of
nA
draw vfrom partnership in Laird,
this area has not enjoyed
rapid
The common stock of the Lake
present snares at around gjssel & Meeds, Feb. 1.
growth, the company's revenues Superior District Power Company $3.05. He also indicated that in

bership of Harold W. Carhart to
George Coury will be eonsideredl

By OWEN ELY

Lake
Lake

Superior District Power Company

Superior

Company

is

District
the

of

one

Power

Iron

smaller

iary

increased 92% in the postwar pe-

stuart

was

sold

the

to

public

in

May, his judgment the company could

R.

Schudt,

Reed

general

and

Transfer of the Exchange mem-

Charles

Jan. 22.

,

Transfer of the Exchange me:cra~

bership of David B. Bandler to
Fred

Sondheim

will

be

cons:<di-

erec* **an- 22-

partners

W. fc.

urtis,

Hutton Admi
Wall

communities
areas

adjacent

served

are

two

and

rural

at

electric

rural

retail,

and

cooneratives

and two communities wholesale

The

territory includes the imGogebic iron range, the
dairylands of north central

sub-holding company in He stated that the company might
Middle West System.
The issue some $2 million bonds and

pany,

the

a

4

u

i

j

•«.

4

common stock was purchased from $1 million
West at competitive bid- year.

common

,

stock

Wisconsin,

the

lands

forest

northern Wisconsin and
£

-

(
1

-

and

resort

many

the

mines

the

on

are

served

exclusively

pany.

Under

.

^ Exchangemem-

St., New York City, members of
the NewYork Stock Exchange on.

bership of George G. Brooks, Jr. Jan. 29th will admit Philip L. B.
f0 j Burr Bartram will be consid- Iglehart to limited partnership in
I

:

•

.

of

known

areas

Range

„

Michigan

throughout the Middle West.

of

K

,,

ered by the Exchange on Jan. 22. the firm.

portant
rich

this

iC^lvc *;cut
JJuf i r?

All

Gogebic

electrified

and

by

the

are

com-

*

4

:

business

normal

conditions, the demand on the sys¬
tem by the mining customers does
not vary a

Ox

THE DETROIT BANK

great deal, as most of

these customers have

a

load factor

of 60 to 70%.
For

20 years,
there- has been
that the Gogebic Range was

T

talk

DIRECTORS

Statement

becoming depleted as a producer
of high-grade
ores,
but appar¬
ently the mining operators have
faith

in

it.

Pickands

Mather

of Condition

J

world

will

be

tons

of

in

able

Under

this

George W. Mason

★

Lake

Superior's

contract

with the operators of this

demand of

quired

mine,

12,500 kw. will be

when

full

a

re¬

production

is

reached.

The
Montreal
Mining
Company is in the process of
deepening
another
mine
shaft

from 3,000 feet to 4,200 feet which
will mean additional load for the

The

company.
tains

at

least

low-grade
most

tion

Range

100

of

ton,

per

compared

from

would

with

rently used

H. Gray Muzzy

these

17-25

al¬

an

low-

about

estimated,
kwh.

Harry L. Pierson
and

Due

United States Government Obligations.

(Due
(Due
State

or

Callable within

or

Callable 1 to 5

and

(Due within 5
Corporate

does

company

material

any

years

Loans

years

;

$128,185,082

;

5

311,050,514

Cleveland Thurber.
Herbert B. Trix

Nathan T. Viger

$143,864,586)
$121,909,251)

years

C. David Widman
;

.

.

.

s

s

OFFICERS

55,506,921

s

Chairman of Board

$44,148,119)

Other Securities

and

{Due within 5

;

.

5

one year

Municipal Securities

•

z

s

s

s

10,844,010

;

;

;

;

5

97,766,369

;

z

z

z

;

89,098,724

2

2

z

z

z

705,000

...

2

z

1

z

3,803,824

;

.

$9,406,922)

Joseph M. Dodge
President

•

Raymond T. Perring
and

Discounts.

.

.

;

.,

Real Estate Loans

Federal Reserve Bank Stock

Executive Vice President

z

..

Charles H. Hewitt
Vice Presidents

Roland A. Benge

Bank Properties

not

Equipment

and

Milton

{Main Office and Thirty-Five Branch Offices)
Accrued Interest

and

Prepaid Expense

.

;

.

the

rural

there
-

and

to

Customers Liability
.

.

on

Acceptances

Credits.

2

296,260

.

.

.

.

»

,

3

.

*

»

98,241

.

;

;

•

;

;

3

s

s

•

$699,931,349

.

and

Edwin D. Kay

Charles A. Kinney
Murray L. MacDonalq

antici¬

Total

change in the

is

Glen C. Mellinger
Ralph

end

of

the

Gogebic

or

be realized.

The company generates most of

its

requirements

power

own

ing

with

its

generating facilities, consist¬
principally
of
six
hydro¬

electric

plants

pacity and
steam

Wis.

of

11,968

kw.

ca¬

modern 46,000 kw.

one

plant, located at Ashland,
Upon the completion of the

installation
pound

of
another
210,000
boiler, the capacity of the

steam

plant

will

be

60,000

kw.

This should reduce fluctuations in

earnings due to variations in hy¬
dro

Assistant Vice Presidents

Demand Deposits:

Electric

:

U. S. Government

.

'

$323,953,333

.

;

13,881,841

.

13,582,043

*

1

Savings Deposits

,

.

.

.

.

Total Deposits

.

-

Unearned Interest

...

.

.

.

5

.

;

.

Harold G. Frear

;
3

Acceptances and Letters of Credit

i
;

.

:

working plants, four coal docks,
ore docks, 25 dairy prod¬
ucts
plants, three paper mills,
three
garment
factories,
three
veneer
plants, one explosive and
chemical plant, 17 grist mills, two
two iron

trailer coach factories and
ber of smaller factories

a

Capital-Common

(375,000 Shares)

.

•

.

$

7,500,000

George E. Clark
Rodkey Craighead

18,000,000

Surplus

Theodore A. Dauer

Undivided Profits

4,450,289

-

General Reserves

4

.

.

.

.

...

.

1,304,119

.

.

William Duell

$ 31,254,408

Emery J. Gesell

$699,931,349

Leon H. Hanselman

James R. Hall
George L. Hawkins

nine

mines

operated by Oliver




value of

Albert W. Holcomb
Dix Humphrey

$32,290,000 pledged to secure public and other deposits where required

Rupert C. Keais

amounting to $4,709,884.

Herman A. Loeffler

Clyde H. McDougali.

MAIN OFFICE

GRISWOLD AT STATE

•

36

Offices Throughout

MEMBER

•

OVER

Adrian A. McGonagle

DETROIT, MICHIGAN

Walton B. Moore

Harry S. Rudy

the City

Albert A. Shepherd

Jack L. Tialbot

OF FEDERAL DEPOSIT INSURANCE CORPORATION

num¬

through¬

are

Assistant Cashiers
Harold P. Carr

by law, including deposits of the State of Michigan

mentioned

W. Bea Waldrip

296,260

laneous. The company serves nine
mines, 23 sawmills and wood¬

The

Charles H. Wainman

2,754,787
'

Shurly, Jr.

C. Boyd Stockmeyer

about 32%

and

area.

Burt R.

1,596,160

'

J. Lee
Quibell

Thurston O. Shreves

$664,029,734

United States Government Securities in the foregoing statement with a par

the

Earl H.

Albert H. Rupp

312,612,517

..

a
•

Accrued Expenses and Other Liabilities
.

..

5
s

•

Berkaw, Jr.

Francis A. Fisher

$351,417,217

rural, 19% commercial, 39% industrial (of which
28% is mining), and 10% miscel¬

out

George R.

&■'

Andrew

Other Public Funds

Total

revenues are

Ronald W. Bainbridge

' :•

.

Individuals, Corporations and Others

conditions.

residential

-

Gustave A. Wellensick

LIABILITIES

the

Range,
nearby

may

Cashier

will

and if this occurs, a substantial in¬
crease in the population of

territory

J. Romer

Marshall S. Woods

However,

south of Ashland

area

west

areas

possibility of the deof low-grade ores in

a

velopment
the

resort

increase.

;

William B. Hall

2,576,404

3

population of the cities it serves,
but expects that the
population of
continue

J. Drake

Wendell C. Goddaro

Clifford H. Hyett

Other Assets

The

Banks

from

cur¬

ton of high-grade

per

Cash

Produc¬

require
it is

of

ore.

pate

Raymond T. Perring

i

con¬

tons

amount.

taconite
ores

kwh.

also

million

ore—probably

unlimited

grade
85

James McMillan

RESOURCES

to

produce 2,000,000
high-grade ore annually.

Dean, Jr;

Ralph Hubbart

&

which

area,

Charles A.

Joseph M. Dodge

December 31,1952

Company is developing one of the
largest and deepest iron ore mines
in the

Walker L. Cisleor

ONE

HUNDRED

YEARS

F

SERVICE

(346)

Continued

signed to enlist the interest of all groups in the com¬
munity. The enthusiastic response to this program is

ADRIAN D. JOYCE

It
year

productive activity.

and

election

there has

been

I

would
time

which

D.

Joyce

sell

results

for the

divisions
new

John F. Kidde

year.

HENRY P.

I

am

spending

businessmen

should

be

curred,

or

ventories

as

in

low

year,

when

as

latter

the

part

the

of

istration.
tuted

There

outlook

Oklahoma Gas

for

in

1953

are

Electric

The

agriculture,

minerals

Company expects
in

classes of sales

good

A

and

kwh.

an

sales

are

1953

same

per¬

1952.

All

expected to show

increases, particularly sales to

Residential, commercial
are

expected

trend. * Room

to

housing projects

homes.

v

amount

expected to

the

at Oklahoma City.
major transmission line
project to meet the heavy demands for electric service
in Northern Oklahoma.

a

Other expenditures will
provide

for the normal load growth of the

Company.

Company has recently organized an Industrial De¬
velopment Department. The objective of this Depart¬
ment

is

to

stability of

further

the

income

Two separate

area.

economic

sources

in

programs

complishing this objective—a

growth, diversity and

the
are

Company's service
in operation for ac¬

research

p&gram

and

a

community development program. The research program
available factual information on all
phases of the area's economic potential, such as labor

consists of making
raw

materials, tax structure, transportation, markets, in¬
sites, power, fuel, water, etc. This project is

dustrial
carried

jointly with the Bureau of Business Research
the University of Oklahoma and the
Company.
The
on

community development

program consists of factual an¬
the industrial and commercial facilities of all
towns in the Company's service area of
5,000 population

alysis

on




par¬
my

buying substantially
countries

than

we

*any

generating capability.
will place in serv¬

of

Elmer L.

the

to

more

1955.

in

construction

Our

effort, to .find

of other

countries; it is helpful, of

new

world
made

able

the- markets

in

would

better

a

ing

and expanded facilities to serve our 455,000

new

t

purchased

consumption

Location

of

the

could

be

made

much

more

which

world
much

friendly to the

scientists

to

develop

for'the products of such

than any one of 39
combined total issued
plus the District of Columbia.
On a national scale, the electric utility industry last
year
established an all-time record in kilowatthours
generated of some 400 billion. More than 1V2 million

new

states, and more than the

customers were added to the

than

year,

at

our

try.

There

solved
were

same

still

The

year-end

corporations,

by

are many

England

serious in

our

currencies

pre¬

Italy

or

Brazil

intensive effort,

we bought more
markets, at least until they wqre
keel, we would really be aiding

balance

which,

both

use

goods. If

India,

or

more

pur¬
coun¬

if

of their

we
raw

result of such
than we sold in such
as a

on

in

selfishly

an

the

even

economic

creation

and

reflected

of

these

by

reports and news

is important, the condition

neighborhood shoe repair shops
corner grocery
stores to

small

and

companies doing busi¬
wide area. They play a
in the economy of our
country.
Their prosperity or lack
of it is eventually reflected in the *'
condition
of the
"blue chip" cor¬
porations and iln the general busi¬
closely-held

uses

economic problems which could be
or

endeavors to

as

from

Those

American

of our leading cor¬

thousands of businesses, big and
little, who publish no reports and
give out no information is equally
important.
These businesses range all the Way

under-developed

make

many

of

nearly self-supporting and
United States if we asked

the business interests of this

of

reports

releases,

undiscovered

/

porations are being examined to establish 1952 results
and 1953 prospects.
While the condition of our larger

to buy those

cpuntry.

LOWNDES

BLADEN

President, The Fidelity Trust Company, Baltimore, Md.

for the products

our

I

light and power industry.

countries; in their present form

materials and their finished

trade

industrial expansion, a high level of home

W.

\»

"soft"

attractive to

a
cost of $2,850,000,000.
Once again,
building schedules will be hampered by

they

token, the great merchandising organi¬
zations of this country should seek out the specialties
of other lands, particularly those lands whose "soft"
currencies do not permit their buying American goods,
chases

industry's lines during

bringing the national customer total to 48 Vt
million, up 6% over 1951.
Construction expenditures of $3.9
billion in 1952
raised the total so invested by our industry since World
War II to $18 billion.
Six million kilowatts went into
service
last
year,
and our generating capability at
year-end totaled 84.5 million kilowatts, which represents
a one-year gain of 7% and a seven-year increase of 60%.
The' industry's
1953 construction schedule calls for
the addition of another 12 million kilowatts, nine million
of Which - are to be installed by the investor-owned
the

.

t>.

same

but whose

is indicated

facilities

manufacturing

new

electric

States

yet unmarketable.
By the

for industry

Nation"

construction, >and increased use of electricity all along
the line should make 1953 another record-year for the

Arthur S. Kleeman

course,

presently

the

14 states

United

are

more*

in

recent release of the Defense Production Ad¬
ministration which shows that since Korea, Greater
Cleveland has received more certificates of necessity
the

by

Continued

uses

outside

#

increased

.

States, but the
place in which to live if we

from

;

>

.

substantially in 1952
in Northeast Ohio, as it did elsewhere in the nation. We
firmly believe that this upward trend will be sustained
in 1953 and subsequent years, reflecting continuing resi¬
dential and
commercial development as well as in¬
creasing industrial strength.
. '' •
-j
The attractiveness of the are we. advertise as "The
Electric

-more-than-ordinary effort to find new import¬
products and additional uses for raw materials

parts

as

the

totaled $33

year

customers.

a

now

.even

be

of

last

expenditures

39% more than in 1951, and during 1953 we
expect to spend still more—some $36 million—in build¬

million,

should create the 'means "of 'doirig some intensive
an

initial ca¬

an

208,000 kilowatts will be installed there late

additional

companies

United

in

with

system,

plant,
Illumi¬

at

international trade is concerned.

as

power

inadequate government allocations of critical materials,
which last year cost the nation and the electric business
three million kilowatts of anticipated capacity.

quarters
sold

Eastlake

new

125,000 kilowatts will go on the line
Eastlake early next year, and an

Lindseth

however,

that in the second
of 1952, other

show

we

pacity of 250,000 kilowatts. Another

military.-program

research

our

Our

in

States

goods from abroad which are already" known and

.

Mustang Generating Station

The 1953 budget also includes

as

far

as

ferred

ex¬

110,000 kw. addition

my

•

least

approximately $11,000,000. This will include
new 70,000 kw. generating station in
Southern Oklahoma, known as Arbuckle
Station, which
a

United

other

third

We

penditures toward cohstruction of

in

"favorable."

position materially, at the same time that it was in¬
creasing their dollar buying power. If that trend was
maintained in the fourth quarter, for which statistics
have not yet been issued, and if in 1953 we can have a
continuation of the pattern,'I belidve we can look for¬
ward
with assurance to a really. prosperous year, at

Several

March,. 1933, and initial

to

contrary

our

-

i
340,000

'

summer

nating

bought from us; this must have improved their internal

a

to

is scheduled for operation in

"favorable"

a

sense

purchased

which

from

far

our

from

countries

completion of the

to

is

Reports

•

are

goods,

balance

the

of

and

are

Our construction expenditures for 1953

have
a

conceivable.

under way in the larger; cities
served by the Company. Most of these
projects involve
planned shopping centers with extensive commercial de¬
velopments. One project in Oklahoma City involves 500
new

of

„

a

—

"the' world*

farm
.

in

of United States exports over

more

coolers, air conditioning

and television will all contribute to these sales.
new

and

continue

really

word

psel\ to, them—a period of that kind
would go a long way toward achiev¬
ing* the objective of "trade not aid,"
»an<j wpulcj pr.obably.be,as strong a
factor for maintaining the peace of

pipe lines, refineries and oil produc¬
Also, the petrochemical indus¬
try will show increases.
loads

this

ticular, would" be'represented, in

tion.
Kennedy

shall

we

use

really advantageous relationship,

good

increase
for

I

$260

of

total

fourth in the interconnected

to

«for»the good of the world and for the

has

It

1953

amount

judgment

petroleum industry.- Consider¬
able load growth is anticipated from

<

ice

by year-end
million since

investment

1949 and 1951, we added

This

for

ARTHUR S. KLEEMAN

balance.

abroad

the

healthy growth

a

'opinion, by

1952, which is the
centage of growth as in

S.

to us that
whole should be at least equal to 1952 and,
seems

President, Colonial Trust Company, New York City

the,

resources

industries.

over

Donald

as

excess

try.
9%

present full employment and hours of

/that usually intended, for it is ordinarily applied to the

part

a

have invested, or com¬

we

for

.a

: In

Best

trade

dependence on defense indus¬
tries than many sections of the coun¬

about

to minimize

spending through the prospect of a

t'he various factors, it

Perhaps in

Company

basic

oil,

diversified

Our

1955,

entire

less

of

and

of

•

growing section in

small

as

term outlook.

the

Southwest.

be insti¬

may

therefore, we see no occasion for pessimism in the near-

This area, which includes much of Oklahoma and
of Western Arkansas, is a vigorous
the

a

good evidence of stability in con¬

be

to

seems

income

Considering

territory served by
Electric Company is good for 1953.

and

is

wbrk.

S. KENNEDY

business

which

mitted

so

can

However, further stretch-outs
ease the Federal budget as well

Henry P. Kendall

President, Oklahoma Gas &

has been

downtrend

be less likely through the realistic
be expected from the new Admin¬

to

seems

continuation

1951

*

The

to

sumer

in¬

keel.;
D.

a

sharp fall from-a -temporary boom to a
slump in such spending.

defense and armaments not used, that
will
help to keep business on a
even

such

the danger of a

and the early part of 1952 were be¬
ing liquidated.
With so much money already ap¬
propriated by the Government for

fairly

on

and

appraisals which

generally
speaking, and I do not anticipate any
important decline in the latter half
of 1953.
I think it will be a fairly
normal year, with prices not as high
as
they were when shortages oc¬
good

a

accelerating still fur¬
expansion program

is

Company

ther the postwar

kilowatts

mild

the

huge program on the books and under way. This is a
program which will unquestionably continue for many
years to
come.
The chance of reductions in defense

optimistic than a good
are. I think 1953

more

continue in 1953. To meet the resultant
growth
in
electrical requirements
among all categories of its customers,
Ti.e Cleveland Electric Illuminating

to

partially

outs, the fact should not be overlooked that there

KENDALL

Chairman, The Kendall Company

many

1953
con¬

collectively in business and in¬
dustry.
In all the confusion over defense spending and stretch¬

optimistic concerning the

are

expected

widely anticipated may prevent the
occurrence
by
the
precautionary
measures
being taken individually

great variety of products and the managers

a

various

our

in

sufficient

climate

breed

Co.

high level of economic activity, in residential,
commercial, and industrial fields, which the ClevelandNortheast Ohio area
experienced throughout 1952 >is

more

a

Electric Illuminating

Cleveland

The

predicted for the latter part of 1953
early 1954, Further, the very fact
that

diversified
We manufacture

decentralized.

and

and
of

The

or

well

is

business

Our

present usage,
bought generously abroad.

contrary to

V-J Day.

to

experiencing

"favorable" trade balance,
would be one in which we

A

years.

or' completely
recession generally

offset

of distributors and retailers.
Adrian

business

could

fidence

inventories in the hands

burdensome

few

even

will be

likely there

favorable

industrial
plant construction and home build¬
ing is bound to keep labor well em¬
ployed.
There
are
few,
if any,
great expansion in

all the export excess

than

"favorable"

States, which we have been

'

is

It

rebirth of free enterprise.
The

seem

would

and,

logical.

going to be

that there is

apparent

last

then, it
that the effect by that
be principally psycho¬

earliest

the

at

pressed with the caliber of the men
selected for Cabinet positions.
It is
a

half of 1953

be felt before the second

particularly im¬

am

the

for

more

ELMER L. LINDSETH

opinion that the level of business in the

our

vigor and optimism in business
industry.

United

the

KIDDE

F.

first
quarter of 1953 will not differ materially from the
fourth quarter of 1952.
Any new policies adopted by
the incoming Administration in Washington can hardly
It is

provement
in confidence
of the
businessman for the future.
There is no doubt that the Eisen¬
hower Administration will develop
and

be

of

President,

average

new

would

President, Waller Kidde & Company, Inc.

great im¬

a

gratifying.

very

JOHN

excellent
continued
Since the

my

employment

high

proving

Company

opinion that all signs indicate an
ahead. It is apparent that there will be

is

de¬

community development program is

The

more.

or

from page 64

Chairman of the Board, The Glidden

at

22, 1953

Financial Chronicle... Thursday, January

The Commercial and

66

i-UWll-Lu,

ness

over

big

part

ness

health

There
these

a

,

less

including, the well-managed

of the nation.

are

signs

that

prominent

and

>

:

of

many

businesses—

long-established

ones

rugged. Prices and wages
high. The cost of doing business is increasing. Help "
is hard to get and inefficient, and turnover is great.
Taxes take an inordinate share of the profits, weakening
cash positions and reducing capital to a point considered
uncomfortable, or worse.
The wages of the great white collar workers and
those living on fixed incomes, often referred to as the
"bread and butter trade," never keep pace with rising
prices. Taxes have increased their difficulties. Con—are

finding the going

more

are

a

unselfishly,

Continued

on

page

68

Volume 177

Number 5188

the Commercial and, Financial Chronicle

...

Continued from first page

(347)

A

V

Bttnd' Witli'

Common

and

v

Free PeopleS

Eisenhower's

faith

The

•

to

us

the

alone

hold

bat to

Tnis

world.

binds the grower

Inauguial Address
and

to

the

mountain

the

In the swift rush of ereat events

full

times

and

sense

in

which

quest

of

seech

God's

rrU-

groping to know
meaning of the.
live.

we

In

powe? to achieve
evil

inflict

to

our

the

T~

when man's

brightest

the
We

our

far-have

we

in

come

man's

pilgrimage from darkness

all mankind?
of

another

p°n

u^-

Great

as

closing

in

jevef. n0f onjy

cities.

tuis

nf

lifp

is

concerned

the

deeply
affect pur livelihood .today and
our
vision
of
the
future, each
of
these
domestic
problems
is
dwarfed by, and often even cre-

upon

us,

to

power

ready

seems

French

soldier

such

who;

time

a

our

faTms

Our

who

IT

and

^

dies

our

in

the challenge of

OF

CONDITION

This

OF

f

faith

the

is

fathers.

our

(

lmed

by eternal moral

deter the forces °f aggression and
Continued

on page

Continental Illinois National Bank

we

Company of Chicago

in

he hea'tbless dignity of man, gov-

Colonial Trust

and

,

nat-

ural? laws.
This faith defines

•

of life.
of

New

York

Federal

accordance

provisions

the

of

and

items in

of

the
Re¬

1

>

and

drafts

Bank

humble
$21,129,324.51

discounts

66,000.00

27,441,495.59
owned,

furniture

liability

institution

on

and

to

'

-

'

ASSETS

lathes

the sick

people,
but

have

$67,258,012.21

individ-

the

partnerships,

and

And

and • corpo¬

rations
of

United

States

Government
litical

;

States

of

of

,

deposits
officers'

10,768,436.19

(certified

checks,1 etc.)

2,029,401.10

DEPOSITS $62,956,305.25
liens

executed

Other

and

by

or,

makes

to

that

of

(not

Including
subordinated
obligations shown below) $63,502,063.01

the

Ca^itM t
Surplus

______

ACCOUNTS,^
V

$2,406,000.00

;

1,200,009,08

fund

Undivided
Reserves

profits

eand

count for

TOTAL

146,869.20

retirement

ac¬

preferred capital)
CAPITAL

•

15,080.00

$3,755,949.20
•.

TOTAL

LIABILITIES.

CAPITAL

tThis

ACCOUNT^ I'l $67,258,012.21

institution's

$1,400,000.03

of

stock

common

capital

capital
with

consists

debentures;

total

mih

1

'

of
11

1 ^

world.
who

this

of

Undivided Profits

par

of
and

value

of

$1,000,000.00.

dedication and devotion

are

secure

othT

that
best

the
of

or

purposes

B'ilev, Controller,
iastitut'on,
hereby

above

my

$2,055,000.00

F.

above-named

'ftement

knowledge and

is

in

a

i !<

■

true

of

ihs

certify
to

the

BAILEY.

Continental Illinois National Bank
and Trust

IV J

LOCK

T.

EDWARD
CHARLES

KELSEY]

our

country, and

in

of

Provi¬

Divine

a

DEYOJ




Company of Chicago
H, CHICAGO

90,

ILLINOIS

the

God but force, no devotion but

its

use:

They

They tutor
feed

others.

upon

men

in treason.

the

hunger

Whatever

defies

of

lit

:P

know

no

Here, then,

it

Vi

is joined

2

M

<0*

P

them,"

no

M

S

pallid

argument between slightly differ¬

philosoohies.

ing

strikes

This

BOARD

conflict

OF

the lives of our

prirciple

hold,

from

edge

of

our

sons.

or

treasure that

we

the

our

spiritual
free

knowl¬

schools

and

churches to the creative magic

free
hes

labor

safely

and

capital,

beyond

the

of

nothing
reach

of

struggle.

Freedom
ery;

DIRECTORS

WALTER J. CUMM1NGS, Chairman

directly at the faith of

fathers and

STOKVfS)Directors
D.

BOX

Member Federal Deposit Insurance Corporation

dence.

the

Correct—Attest:

public and trust deposits and for other
required or permitted by law.

of our founding
conscious renewal of

watchfulness

belief.

CHARLES F.

FREDERICK

to secure

purposes as

EDWARD A. CUDAHY

THEODORE V

Retu Estate

Chairman of the

Vice Chairman of the Board,
Sears, Roebuck and Co.

Board. The

CARL A. B1RDSALL

is

pitted against slav¬

light against dark.

CHAUNCEY B. BORLAND

Managing Owner, Borland
Properties
CHAMP CARRY

President, Pullman
Incorporated

JOHN F. CUNEO
President,
0
The Cuneo Press, Inc.
MARSHALL FIELD

President,
Field Enterprises, Inc.

A. W. PEAKE

HOUSER

J, Q. ADAMS

President

assigned to
liabTties
and
for

I,' Charles

pledged

precepts

documents,

No

MEMORANDA

I

United States Government obligations carried at $301,018,329.14

<

Cudahy Packing Company
Assets pledged

a

$2,800,500,847.57

change

ening

our

24,073,146.85

1111 ■■

i

s

strength¬

a

the

.'

100,000,000.00

Surplus

principles that the politi¬

Rather

75,000,000.00
Par value $33!4)

f-

hoid

0 I
1,170,217.51

1J J J J ■ j l

in all his

18,106,404.90

Contingencies...

(2,250,000 shares.

I

' 11! 1111

Ul

purpose

12,468,823.00

Expenses

/Earned
Capital Stock

n

man

any

884,879-96

Taxes, Interest,

Income Collected but Not

i1 iJ i1

Mill
1111

$; 1,568,797,37 5.35

they torture, especially the truth.

AC-

COUNTS

...

T 1

<i i« i i

produc¬

The enemies of this faith
CAP!

il

the ini¬

our

and

«

Reserve for

our

reward

deny equality

disorder.

255,790.94

281,766.82

LIABILITIES

LIABILITIES

Deposits
Acceptances

we

expresses

faith

•

the

warns

to these

to

outstandings

liabilities

TOTAL

ml

is

cal changes accomplished1 this day
do not imply turbulence, upheaval
or

'"'8,200.00

_

for account of this insti¬
tution

choice

to

It inspires

i

the tyrant.

on

premises

Acceptances
,

other

or

banking

to

and

toil.

It is because we, all of us,

TOTAL

Mortgages

^

brothers betrays the spirit of the
free and invites the mockery of

institu¬
_____

Other

175,000.00

-

banking

tions

and

'

po-

subdivisions

Deposits

1

865,788.26

and

asserts-that

It

the wonder of

it

seeks

1,465,516.81

Deposits

'r

III

the
rule

not' to

leaders

that

tivity

$47,652,162.89
of individuals,

partnerships,

$2,800,500,847.57

Reserve for

we,

right

work
own

that

8,700,000.00

<1

whole way

our

decrees

8,174,019.85

Banking House

the

or

668,088.36

*..

Cpllected

fire

ledgers and

treaties

5,250,000.00

Income Accrued but Not

pick cotton and
plant corn—all

draft

serve.

tiative

corporations

Deposits

Liability oh
Acceptances.. ..........

and

elect

to

own

uals,

Customers'

who

It

767,043,046.26

Stock in Federal Reserve Bank

men

life.

154,651,671.14

Loans and Discounts

to

as
proudly, and as profit¬
for America as the states¬

our

Time deposits

and

1,296,855,068.74

Other Bonds and Securities..

of

ably,

LIABILITIES

deposits of

balance

heal

of

'

234,186.69
343,940.76

________

<

.

* M

the most exalted.

of

This faith rules

this

assets

Demand

love

who mine coal and

turn

420,865.98

acceptances

outstanding

'TOTAL

Obligations

we

legislators who enact laws.

$203,992.79

Customers'

and

men

serve

(in¬

i.

$216,873.19.

Other

The

over-

premises

fixtures.

people

free

furnaces and

17,425,096.93

stock

$37,242.45

i

Banking

by

559,158,953.22

Unitted States Government

dountry—all are treasures equally
precious in the lives of the most

196,901.75

cluding
-

RESOURCES

Cash and Due frorri Banks.. .$

Government

Reserve

Loans

light of this equality,

truth; pride of work, devotion

bentures

*

ished

■

!

of

know that the virtures most cher¬

Act.

"

-

obligations, direct
Other bonds, notes, and deFederal

In the

to

process
;

—

States

the

of Condition, December 31, 1952

the

Creator
that are man's inalienable rights,
ard that make all men equal in
His sight!
■
>,

balances,; '

reserve

collection

United

the

to

Federal Reserve

ASSETS

cash

by

Federal

witjt., other
institutions,
in-'

banking

9f

the

balances

eluding

4

made

Statement

full view

our

It establishes, beyond de¬

bate,. those gifts

-.of

district; pursuant

the

'

.

Cash,

close

pursuant

and

the

of

published

Banking Law

this

provisions of

the

1952,

call

a

York

of

at

31,

Banks

the

New

Bank

member

a

System,

with

of

State .of

Y.,

December

on

Superintendent

serve

N.

Reserve

business
in

20,

_

"" " develop the strength that will

*

Faith

faith

our

.,

Prmciples That ShaU Guide Us

to

history,

is

time, destiny

We wish: our friends the world
farms and factories vital materials over to know this above all: We

abiding creed

It

our

same

oilr faith.
REPORT

cause

the one capital offense against
To produce this unity, to meet freedom, a lack of staunch faith.

free must proclaim anew

^re

confi-

So are we persuaded by neces- helpless prisoners of history. We
sity and by belief that the strength are free men. We shall remain
of a11 free peoples lies in unity, free, never to be proven guilty of

Tctories emergencies":'; "

«ed for these

final gift,
human life

in

dread

threat—not with

.

'
At

the

We feel this moral stren^th bewe know that we are not

intenslty ln the event of wai.

Jhe BlitishA Sol.dier haS lai^TVif fUntry

from the earth
Must Proclaim Anew

Italy

dignity upon

a common

its

as

erase

southern

face

merely by a noble idea but by a sponsibility, we Americans know fixed principles,
simple need. No free people can anb observe the difference beThege principles are:
for long cling to any privilege or tween world leadership and imAbhorring war as a chosen
enioy any safety in economic
between firmness and
(\ulk the DurDoses of those
solitude. For all our own material truculence; between a thought- way
^
u S h!
mi§ht' even we need markets in fally calculated goal and spas- ^°f^cr.ea^ec?
Vn
jor
surpiuses 0f modic reaction to the stimulus of the first test of statesmanship to

mountains but also

Science

confer

with matters that

we are

nrnmi,p

thp

thl

the preoccupations

at home,

us

Ypt

verv genim that
imperiled bv
by the very

made
genms^tnat
PT0slible' Na(tiof
^shadows Tette-and^urnstm dTvlces to

are

night

are

absorbing
as

Or

long

toward

of rice in Burma

in

lands,

all

bond

common

distant

ln Malaya, the American responsibility of the free Worlds
jn pleading our just cause be¬
e 2lven in Korea.
leadership. "So it is proper that fore ^he bar of history and in
We know, beycnd this, that we
assure our friends once again pressing our labor for world peace,
are linked to all free peoples not that, jn the discharge of this re- we shau
be guided by certain

S.

the

sharpest

understanding
we
be- fears of all ages.
can turn
guidance.
We sum- rivers
in
their
courses
level
knowledge of the past mountains to the plains.' Ocean
and we scan all signs of the fuand land and sky are avenues for
lure
We bring all our wit and
our
colossal
commerce.
Disease
will to meet the
question:
How diminishes and life lengthens.
all

mon

shepherd

gocd

surpasses

hopes and

not

of

planter of wheat in Iowa,

It coniers

all human kind.

We find ourselves

free

of

This basic law of interdependence, and confusion—but with
so manifest in the commerce of dence and conviction.

the mountaineer in the Andes, their danger in discord

of ated by, this question that involves

peaks

Korea.

the

and the

belong

the

products

67

President, Standard Oil Co.,

(Indiana)
H. A. SCANDRETT

JAMES R. LEAVELL

Railroad Executive, retired
FRANK F. TAYLOR

Banker
WILLIAM H. MITCHELL

Vice President

Partner,

Mitchell, Hutchins & Co.

,

HERMAN WALDECK
Executive Vice President

LAWRENCE P. FISHER

ROBERT H. MORSE, JR.

R. L. WILLIAMS

Director, General Motors

President,

Corporation

Fairbanks, Morse & Co.

President, Chicago and
North Western Railway

System

D. A. CRAWFORD

CHARLES Y. FREEMAN

PETER V. MOULDER

Director, Pullman

Chairman, Commonwealth
Edison Company

Executive Vice President,

CHARLES D. WIMAN

International Harvester Co.

President, Deere & Company

Incorporated

69

68.

The Commercial and Financial Chronicle...

(343)

Continued from page

66;/.-

- /i>:*

v

,

v. ;

.•>

.

approximately classified as "the Man in the
Middle," The standard of living of "the Man in the
Middle" is actually lower than it was unless an addi¬
tional member of his family is worKing.
Until living
costs level off and taxes are reduced these people will
continue to represent a problem. The granting of con¬
tinuous
and
unrestrained wage increases to
a
few

high level.

dle"

finance normal growth and to . permit-the
successful operation Of incentive plans and profit mo¬
tives. Many authorities believe these requirements nec-;
essary to a healthy business climate.
If a new Federal
Administration is able to make a real start
toward
sound

a

program, it

mation

A

and

without fear of

Such

collapse or even a severe

a

result would,

a

E.

ALFRED

V

,,

*.

>*"•.

..

In

LYON

Chairman of the Board, Philip Morris & Co. Ltd. Inc.

EVery

as

a

of

economy

our

nation

national

economic

multiplied

our

whirlpool will be

many

The

-

in

resulted

the

tion of tobacco

increased

an

industry has enabled

'

*Geheral

consump¬

products will continue

-

/

B.

With the normal growing conditions and. barring
any
Percy C. Madeira, Jr.

ply in 1953 will be adequate to meet the needs of the

for

!

industry at prices approximating those paid in 1952.

fare

.

;
*

;

political

new

.

-

,

Despite

real

arbitrary price control

the costs of leaf,
raised

a

Administration

should

principles

tobacco

of

Another

take

our

industry and

competitive basis

feel

action

some

free

once

We

enterprise

the

governmental

matter

heavy burden of 80 tax

to restore

the

the

on

to

the

that

calls

per

for

problems when

and

cigarettes

case

of

one

state

A disastrous pattern, as
industry, is beginning to assert itself.

beyond reason,

are

cities and towns to the menace of

Unless action is taken

en

tax

egg"

on

areas

and

in

liberties

and

tobacco
stand

ment.
most

as

united

as

action

to the

Nineteen

decisive

opening their

"cigarette-bootlegging."

;

the above
in

1953

factors, will require

by

top

all

levels of

and

interesting




in

and

in

the

tobacco

corporate' manage¬

fifty-three promises to

tobacco.

factors

grower

the

be

long

one

the

our economy

Prices in general have re¬

of

history

fication for

ing

in

relations.

at the

Allocations

with.

of

many

steel

ern

had
(resulting mainly

from the steel strike) often did not reach us in

time

to

field

get

in

ume

our

time

we

sufficient

the

purpose

tensions

world will

and

that

less

than

last

business

year,

made

up

the

our

but

farm

the

1953

are

or¬

In

order

dollars,

have to

a

effects

for

American
be

low¬

relaxation

will

upon

the Ameri¬

economy.

most

of

the

coming

business activity will probably
continue at
a
high and relatively
year

stable

level,

but

there
late in

be

may

Sidney Maestre

a

downturn

from

our

farms

the

armed

labor-saving
per

.

circumstances,

for

Builders

long-term

short-term credit prob^

and

anticipating that housing "starts" wiU exunits again this year and other types *
of construction
are
expected to equal or exceed the;
levels reached in 1952. Surveys indicate that plant and:

defense

forces, and
W. C.

Mac Farlane

device

possible

one

are

million

equipment

expenditures in

below the total reached in

to

produce

more

1953

1952.

will be only

slightly;
lead,

These factors may

higher long-term interest rates, since the monetary;
are
not attempting to maintain an "easy";
money policy.
Moreover, the Treasury may attempt to]
to

authorities

Our customers, the

farmers, are well fixed financially.
just harvested one of the best crops in history,

refund
'

are

moderate

for

Demands

ceed

acre.

prices that

will also con¬

of economic stability. Under

ably will remain high during the greater part of 1953*:

country is increasing in popu¬
ranidly. Men are still being

We have
at

by tradeJ
and loans

inflationary pressures will protK
and, hence, a sharp decline in*
prices is not to be expected.

willing and able

good operator will have to employ
better farming methods but

yields

the

way

grants

such

Throughout

these

not onlv
every

its

earn

dollar

ably remain

is good

dealer

war

lessen¬

between

tribute to the maintenance

ma¬

get out and work.

work and- for
a

of

those companies and

drained

any

"all-out"

is little justi¬

generally

industry is concerned,

ganizations who
to

sale

think the outlook for

for

an

the level of national defense expenditures
as

chinery in
I

Although

observed in

balance.
Insofar

■

'

r

'

undoubtedly be tested
that

barriers will

slight

in¬

Farm-machinery sales vol¬

was

defense

;;

the year.
Although business
will be good, periods of weakness may be
specific industries, notably the non-durabJe>
consumers' goods industries.
Agricultural income also
may be adversely
affected. The probable increase ill

products out to the

for

•

Company,

in 1953.. It is believed by many

sales

in

problems

we*
eco¬

powers and Soviet Russia.
The economic stability of the West¬

can

1952, in spite of the

the:

>

present time, there

anticipating

the

great

contend

whenever

Western

have

to

victims

activity in the year afc£ad will^
primarily by developments
...field

international

is improbable

President & General Manager, Minneapolis-Moline Co.

high

but.

of business

determined

and

the

of

The trend
be
of

ered,

all-time

inevitable

,;St. Louis, Mo.

W. C. Mac FARLANE

another

point is high,

SIDNEY MAESTRE

•

reduced.

had

changed. The;
long-term and

Chairman of the Board, Mercantile Trust

earn

company

is

nomic curve.

to

lation
consumer tastes

the

be

volume in

•

be

Europe

Our

industry, from the smallest

operator

X, the
and

scope

will

should

be well under way.

well

its

not

wholly against normal depressions in

ensure

country in the immediate future.

and

slaughtering the "goose that lays the gold¬

may

cigarettes,

on

the excise tax situation in
1953,

The shifting patterns of
marketing and
alert

taxes

rapidly losing sales

tax revenues to adjacent low-tax

in

controls from

have

of Russia

the break-even

Europe should

tended.

raised

diminishing

now

matter of time.

a

activity

are

time and, without a new
outbreak of war, there seems to be no reason to suppose
that inflation will become a serious problem to the

Our

municipalities, which have

the process of

and

serious concern

such

■

to

of healthy adjustment to
conditions, and conditions are
always changing. High standards of living and political':

highest

action

Adding to the

<Louisiana), amounting to 80.
States

of

bound

the grist on which private enterprise'
The rise and fall in the economy is the
sign*

must feed.

,

tariff

pack already imposed

by superimposing additional taxes—the

but

same

by the Federal Government, many states and
municipal¬
ities are pyramiding the cost of a
package of cigarettes

befell the liquor

W

Regulations

of

matter

a

Our economy is

the

by

mained fairly steady for some

1953

system

again to place it

during 1953 is the excise tax situation.
very

that

is

ago

year

seems

other consumer goods industries.

as

was

removal of wage and price

cigarettes, while

on

labor, finance, and other items have been

by governmental action.

basic

which

feeling that we
depression of im¬

a

and Veterans'

such problems

These-

-

The profit picture of the tobacco
corporations has been
affected by

removal

the

inflation

*

.

procedure.

riot share the

heading for

benefits, exert a more or less per-1
tendency toward dollar activity and inflation, j
is true, of course, that even a moderate
sag presents

It

of

and is reflected in
earnings, which were

bank

-

ac- ■»

manent
-

helped by a greater volume of loans during the
year.
The prospects are that this rate will continue
unchanged at least for the next six months.

However, the picture of the tobacco industry is marred
hope will be remedied in the

the

could

inventory

continuing. New products;
demands, ditto.
Certain otherfactors, such as governmental welfarm price supports, labor union pres¬

activities,

sures

also

by unfair governmental interference at all levels, a situa¬
we

is

rate

industries

reverse

a

and

Raphael B. Malsin

years

many

better

new

to

defense spending will have to persist
a near-war basis.
Population in-:

•

This

1952.

basic

process of

a

on

commercial loans increased to 3% in

natural disasters, it would now appear that the leaf
sup¬

that

creases are

indepen¬

influence

System from

•

of

problem

ing

climate.

Fall

I do

Treasury, or other political sources.
The
rate
of
interest on
prime/

•

'• vVv;«

•

-

have sags and bulges, but the major
influences which produce high levels

selection

'the

assure

;

inuustries), business should be

;

are

lowest

Comparative prices in the world.'

over-:

our

willing to work hard for it (and I

cumulation

dence of the Federal Reserve Bank¬

our

prospects, they

encounter,.in

may

portance.

•'

world.

financial

the

for

canvas

shift from

Folsom, is of great reassur-

to

ance

we

presume

people to purchase the highest quality cigarettes at the

tion that

the

put a

,!

' •

Eisenhower's

appointments

thing, however—intensified

to

However,

hours

Humphrey as Secre¬
tary of the Treasury, assisted by Mr/:
W. Randolph Burgess and Mr. Ma-;
rion

:

-

a;

Mr- George M.

through the chhf^rit year, we be¬
lieve.
Among these, we number as
most important:
(1) the growth in
population; (2) the increase in the
smokers; (3) the fact that the pro-1

of American

keel

channeled:

future, "With respect to' retail

promising.

caution about

American business on
well beyond that pe¬

keep

even

being

sales,
I acknowledge a sense of:
1953, because there appear; to5
:,be negative factors in the production picture which may'decrease national income, and there-'
fore consumer spending, by that time.1
Defense spending and capital invest-1
ment may decline somewhat and I
looks

""V

riod.

on

o

:

immediate

the election, the business and
immediate future is bright.

should

;

;

materials

President, Lane Bryant, Inc.
r

Nearly all forecasts for the first six months of 1953 are
optimistic. Government spending for defense purposes

,

of the

critical

materials

one

of

pattern of growth of the in¬
dustry. The economic factors which

genius

'

..

/

In part, at least, due to
financial outlook for the

other

and

RAPHAEL B. MALSIN

Philadelphia, Pa.
•'

be somewhat

may

just past, because

year

critical

are

"

President, Land Title Bank and Trust Company

torical

women

good in 1953.

PERCY C. MADEIRA, JR.

times.
>
We at Philip Morris & Company
anticipate 1953 will follow the his-'

ductive

V/v'. j;:\.

being added.

are

machinery

steel

think this applies to all

ordered for the North Coast Limited and other refine¬
ments

will

they

know

train, The Mainstreeter, in transcontiA fleet of 16 Vista-Dome cars has been

nental service.

have spent a record

The tremendous effect of this in

number of

have to

For those who

.wheat

contributing to the growing economy of

are

"name"

second
;

of

billion plus for tobacco product.

$5

Alfred E. Lyon

we
,

November,.1952, Northern Pacific inaugurated

probably reveal over-all cigarette:
production of nearly 430 billion units,
nearly twice as much as a decade ago. •
Consumers Will

winter

-reduce

to

the mar¬

on

even

machinery should be more than made ■
in increased billings of defense contracts, of which'
have a backlog of some $50 million.

up

r

..

and fall

summer

our streamlined transcontinental train, by 12
between Chicago and the North Pacific coast and

Nineteen fifty-two was such a year. When
the final figures are in, they will

whole.

amount

the

of

Any shrinkage which

ited,

pldest in the United States, has been a year of progress

paralleling the expansion of the

late

but

all sales of farm

..We reduced the running time of the North Coast Lim¬

in the history of the tobacco industry, the

year

-

program. of improved • passenger service which should
result: in a sizable increase im passenger revenue in 1953.

-

iV)

general

industrial

and

Northern Pacific territory.

.;

w;

Mines

drouthy

'Montana,

indeed, be "a consume

devoutly to be wished."

of

movement

supply,

their products in order to properlypresent them to their prospects, and then they will have'
to go cut and demonstrate what the
products will do. •

as¬

The Williston Basin oil development in Montana and
North Dakota, and putting additional.acreage under irri*:'
gation in Central Washington's Columbia Basin and in ;

.

short

in

was

^handicap.,

acceptable tax

more

a

would

wagos

Aobert S. Mncfarlane
-production and tonnage materially,
but favorable spring moisture con;
V
ditions for spring
wheat could partially offset this

•

it

allocation

the

will

important tonnage this
as will
fruits and vegetables
the irrigated areas.

threatens

is possible that other, necessary adjustments,

be begun

recession.

dollar

and

ac¬

produce

from

to

attaining

can

to

currency

possible

hign

ana

large

a

year,

making progress. This they cannot do without
and a tax program which makes it

were

stable

a

-

than

limited

plants in NP territory will continue

"the Man in the Mid¬

enterprises and

business

in

be

selling. Dealers will have

be

merchandise.

unless its

country has ever been truly prosperous

No

modest

are

will

will

sure

comparative dollar values were used as the yardstick,
nearly into focus.

If;

that

into defense products.
All this adds up to

ployment

xecenf results would be brought more

1«53

in

plenty of competition for his dollar-. There

labor-saving products being placed

The production of farm

Northern Pacific tonnage of
materials
heavy.
Continued full em-

•

in 1939.

about one-half of what it was

ket

rushing in to buy the first thing that.

him. He is going to sit back and wait for'
him on his need for the product, and

sell

lumber and other bunding

curate,

parative results in dollars over the last 10 to 2u years,
one
has to bear in mind that the real value of the

new

less

boom

to

have to be demonstrated and sold.

;.

construction

powerful pressure groups has intensified that problem.
Furthermore, when reviewing reports showing com¬

only

are

business analysts' forecasts of a

if

not

there will be

'

-

is

offered to

someone

equipment a..d improvements, which is about the same
as
for 1952, is based on the expectation lhat general
business conditions will continue 10 be good and tnat our
name
Will remain at a
lelatively

persons

is

is

-

.Northern Pacific's 1953 budget of $23,000,000 for new

•

.

dollar

customer

ROBERT S. M ACFARLANE

.

:

vsequently, they may be squeezed out of a sizable part
of trie market;
This substantial group is maqe up of

1

r

,

President, Northern Pacific Railway Company

Thursday, January 22, 1953

at

an

almost

all-time

high! But the

a

part of the short-term debt, by offering longer-!
*'

Continued

i

on

page

70'.

Number 5188... The Commercial and Financial Chronicle

Volume 177

(349)

Continued

from

67

page

For,

must

of

purpose

their

otner

humanity from
preying upon itself.
In the light of this" principle,
we
stand ready to engage with
any and all others in Joint effort

(7)

leaders,

to

dedication

the

be

must

-

conditions of peace. For the impoverishment of any
be the supreme single people in the world means
all free men, so it Ganger to the well-being of ail

the

it

as

to

the

remove

fear

and

and

so

of

save

distrust

effort

nations,

possible

drastic

The sole

reduction of armaments.

such

undertaking

for

requisites

mutual

among

make

to

of

causes

estly toward
and

that

in

—

for all;

secure peace

result

their

they

—

provide methods by which every

nation will prove
in carrying out its

participating
faith

good

that

Realizing

(2)

and

sense

wisdom

decency alike

common

the

dictate

common

of

futility

appease¬

to pla¬
the false and

ment, we shall never try
cate an aggressor by

combine

to

groupings

hope, within the frame¬
the United
Nations, to

we

work

of

of

free

peo¬

help strengthen such special bonds
the

world

The

over.

of

nature

these ties must vary with the dif¬
ferent problems of different areas.
In the Western

Hemisphere, we
neighbors in the
of perfecting a community

join with all
work

of

our

fraternal

trust

and

common

In

Europe,

ened

we ask that enlight¬
inspired leaders of the

and

newed

nations

vigor

strive

with

make

to

the

re¬

soldier's

a

burden

chains.

is not so

pack

prisoner's

a

as

that is

strong and

productive

sely

in

freedom

help defend

can

world,

our

immen¬

we

view

nation's strength and security

our

be

insinuation

other,
in

which

upon?

his

rests

place
before

to

everywhere
of

cause

country

(41

Honoring

world,

we

strength

to

another

political
tions.

(5)

our

use

impress upon

people our own cherished
and
economic
institu¬

any

realistically the
capacities of proven

help them to achieve their

own

Likewise,

shall count upcn them to
within

sume.

the

limits

resources*, their full and

dens

the

in

strive

to

for

it

the
we

No

person,

munity

can

act

of

for

the

hope

in wisdom and

Brothers

that

beckons

been

century of trial.

work

no

that

awaits

charity—and with prayer to

com¬

mighty

God.;

us

;

;

care

on

the

Of

Di-

H
Harold

company

Al¬

Stores

common

of

as¬

their

just bur¬

defense

And in

and with compas¬ at 30 Church St., New York City.

Climax

Firth

Sterling, Inc.; and Bing &

Molybdenum

Bing, Inc.

,

of

to

merely an
effective

an

of peace may become not a vision

fact.

a

This hope—this supreme aspira¬

We
for

must

our

dom

the way we live.

ready

country.

not long

We

be

to

entrust the
the

must

defense

to

purpose.

weak

'

-

.
...

care

or

timid.

in
in

DIVIDENDS

—

$228,000,000.00 has been paid

over

to

Dime Savings

Bank depositors since 1859.

,

—

>

Must

Be

Willing to Accept

We

must

be

whatever

sacrifices

quired of

selves,

soon

its

us.

a

:

NSURANCE

'

willing, individ¬
nation, to accept

shall strive-to foster
everywhere. ;arid to practice our¬
encourage

of free¬

the

:

tary strength and the free world's

that

TO MILLIONS

all

acquire :proficiency
and
display stamina

as

we

dare

For historv does

Sacrifices

policies

an¬

hope to be known to all peoples.
By their observance, an earth
but

may

be

re¬

-

Insurance
"

are

insured by the Federal * Deposit
■

.

1

"

MORTGAGES
■

privileges above its principles
•J

deposits

your

I

A people that values

loses both.

—

Corporation.
—

over

65,000 homes and other properties in Brooklyn,

Queens and Long Island

are

soundly financed by The Dime.

:

•

productivity and profitable trade.

These

basic

precepts

are

not

J VERY SAVINGS BANK SERVICE is made
B

available

to

tAUST IIYIDCNI

The Dime's 298,000, customers.!
'•:r *or)i

whether

In its

make

buy

YEAR

a

you

a

10^- Money Order

or

you

low-cost Savings Bank Life Insurance

finance your

and

purchase

$10,000 savings deposit... whether

or

home, you'll appreciate the prompt

pleasant service that has made The Dini&

famous

name

to

millions.

~

fROM BAY OF DEPOSIT

a

;

COMPOUNDED QUARTERLt

ASSETS EXCEED

DOWNTOWN

Fulton Street and DeKalb Ave.

BENSONHURST.

,■>..

86th

Street

Ave. J and

FLATBUSH

and

BROOKLYN

"

j'-'

/

'

and W. 17th St.

bo.;

Member Federal Deposit Insurance
MEMBER

FEDERAL DEPOSIT




INSURANCE CORPORATION

Avenue

Coney Island Avenue

CONEY ISLAND ...Mermaid Ave.

THREE OFFICES IN

19th

j'.;
Corporation,

Bros.,

Inc.;

quest of honor¬

our

Director of Al¬

Inc.; Interstate Department Stores,

nor tire, nor ever cease.
these rules of conduct, we

By

of

indisnensable basis of mili¬

,

a

Corp.; Gimbel

shall

we

Szold

since its organization in

He is also

any

or

J.

"

>

Robert Vulcan

with

deed with

sented

Board

lied

in conscience;

pre-

rectors of this

Opens
industry, to teach
with persuasion, to preach with
Robert Vulcan
is engaging in
conviction, to weigh our every the securities business from offices
work

re

1906.
-i

summoned to

are

Lehman

the

all, to be done with bravery, with

beyond the reach

We

is

for

s

the

onward in this

This

lives

our

is

haven

a

hope for the brave.

a

the

peace.

home,

no

be

all

command,

winning of

of this call.

of

us

can

the enrichment

and the
,

source

This

than

it is

expend¬

or

not

ually and

peace,

is

weary,

promise,

(6) Recognizing economic health
an

productivity
heads, our hands and our

strength
both

More

indis¬

The

another, is

peace,

make

freedom.

as

hearts

citizen plays an

role.

is

Respecting the United Na¬
the living sign of all peo¬

hope

tion—must rule
and

securitv and well being.
we.

our

Szold

......

as

ples'

Assessing

friends of freedom, we shall strive
to

pensable
of

from death,

.

able peace, we shall neither com¬

never

try to

people or
sense inferior

force.

identity and
nation of the

shall

race

one

the

;

needs

each

escape

hold

we

We reject

one

the

the

each

of

that

eloquent symbol but

comfort of himself.

heritage

So

an

way of life.

a

able.

(9)

citizen

indivisible,

regard and honor.

tions

trust

and

one

the

a

it is

Only as
Europe unitedly mashals its
can
it effectively safe¬
guard, even with our help, its

hope of free men everywhere. It
is the firm duty of each of our
free
citizens and of every free

as

More than

our

all continents and peoples in equal

-

(3) Knowing that only a United
States

of

strength

(8) Conceiving the defense
freedom, like freedom itself,

a

genius

iree

spiritual and cultural treasures.

heavy

the

of their peoples a reality.

for

choice

to

unity

wicked

bargain of trading honor
security.
For in the final

soil

scientists.

to

purpose.

families and the wealth of

our

our

suggest

regional

western

pledge.

of

ples,

that—in their purpose—

are

they be aimed logically and hon¬

peoples.

Appreciating that economic
need, military security and politi¬
cal

lofty, abstractions, far removed, sion. For this truth
must be clear
from .matters.of daily living.
JHL J. Szold Director:
They before
us:
-Whatever
America
are laws of
spiritual strength that hopes to
General Cigar Co.,
bring to pass in the world
Inc., manu¬
generate and define our material must first'
come
to pass- in the facturer of "White
Owl," "Robert
strength. Patriotism means equip¬ heart of America.
Burn s"
and
'
ped .forces and a prepared citi¬
other national
The
peace, we
seek, then, is
zenry., Moral stamina means more
rothing less than the practice and
energy and more productivity, on
the fulfillment of our whole
faith,
the farm and in the
factory. Love
nounced
that
among ourselves and in our deal¬
of liberty means the
guarding of ings with others. It
signifies
more
every resource, that makes free¬
than stilling the
guns, easing the
dom
possible—from the sanctity
sorrow of war.

f|

Inaugural Address
promote

€9

Co.;'

70

The Commercial and Financial Chronicle

(350)

Continued

from

this
soon

decline

ably
*

first half

the

in

the

of

amount

decrease

may

words of news were transmitted
by Western Union to the newspapers of the nation and
the world during the Presidential nominating conven¬
tions, campaigns and election. Additional hundreds of
thousands of telegrams relating to the election were
also handled.
It was the wordiest campaign in history.
Western
Union
in
1952
began
providing scientific
weather forecasts of the National Weather Institute to

of 1953, although the
be somewhat less than

seasonal.

that, since the volume of busi¬

It must be emphasized

activity will be determined in great part by the
level of military expenditures, businessmen should study
carefully the trend of international relations. Moreover,
it should be realized that, although business activity
ness

will

ably be

hundreds
26

ac¬
will prob¬

Nineteen fifty-three

in which caution, but not retrenchment,
to have been a sound policy.

year

a

will prove

MARSH, JR.

T.

ROBERT

President, First and Merchants Nat'l Bank of Richmond,
Richmond, Va.
The

opinion

prevailing

unanimous

almost

regarding

1953 is at the same time gratifying
alarming. One remembers from past business cycles
that when 100% of the people have the same feeling

a

prosperous

very

and

tne

about
have

economic

•

invariaoly

remarkable

to

find

a

Many

R.

T.

be

now

the

the

been

checked.

ravages

We have

high hopes for the

One thing we
overlook is the tremendous amount of debt, both
and private, which has reached an all-time high.

for

year

year

of

Telegraph

engineering

com¬

Forecasts

with

ceiving

machines

with

known

operating

for

five

Board

in *

thousands

more

cities

in

use

48

will

in 1953

be

cities,

Confident

and

Canadian

rooms.

and

and

income

levels

to 'send

and

correction.

some

answered

are

This

is

rep1 ace

tenor,

i

,

but

ingot

over

-

should reach 120,000,000
this represents a substantial

It

is

forces

economy,

but

Its

uses

Air

videdI

Despite the

pro¬

spending
a

coun¬
-

in' service recently.

an

to

dian

Pacific's railway operations, in

investment

the

national

give

year

depressed by

taken to

was

summer

with

-again left

the

the

.vessels

company

.

,

reentered trans-Pacific trade

"IVlaplecove"

"Mapledell," whiqh

and

.

.

calling for the dipart of ther

placement vessel .was ordered ior passenger service in the
North Atlantic. The order was placed with the Fairfield

Shipbuilding and Engineering Company, of Go van, Scot¬
land.

Itps expected that the new ship, which will be

22.500
St:

gross tons,

will be commissioned in time for the

Lawrence summer-season of 1956.

In

order

to

keep

the rapid development
Pacific Coast the company
in service

abreast

of

which is taking place on the
has.
on

in

the

the past few years, built and placed
Vancouver-Victoria-Seattle route the

Princesses

fine

ships

together with
brisk activity in the development of

"Patricia," each licensed
to carry 2,000 day passengers. The new "Princess of Nanaimo." the largest ship in the fleet, which can transport
130 automobiles as well as a heavy passenger load, was

the country's natural resources, such

placed in service last year between Vancouver and Na-

record

oart of the

as

well

make Montreal the terminal-for

the "Empress of Cqpada" and the "Enrpress of France," late this year a je-

of a-substantial

1952

Western

harvest, coupled with

as

ocean

season.*" Nine voyages were completed

,

and -other^factors, combined
push material costs and wages

The

products,

marked falling off in

a

In .view of the advancing age of

United

Upward to the extent that net earn¬
ings on railway operations were still
inadequate to provide a fair return
on
the large investment in railway
property.

Mathe*

re¬

teletype

a

Kong and the Philippine Islands. Both ships are manned
by Canadian offieers and crew. '
"
\ f

-

A.

service to patrons in

previously operated in the North Atlantic, and these
vessels now provide a monthly freight service between
northwest Canadian and American points, Japan, Hpng

fcy heeds,

William

lines in

and
justified that decision.
•
"Beaverbrae"" continued her service: in immigrant qnd

J*- country's productive'effort to defense
to

improved

.

the

our

won

freight traffic, with heavy carryings during the twelve
months ynder review. • •
■
" I »

capital from the

situation

year

the results have

im¬

[^States and abroad, the tense inter¬
f version

This

consigned to them

to cars

decision

for the -destructive
stimulant to the

major

ity'in Canada during 1952, the financial results of .Cana¬

by Western




that

become*

order

seriously

much to be desired. The unprecedented flow into Canada •
in the first few months Of 1952T, of

almost

Force

' /;

freight rates, which reached their lowest point for sev¬
eral years. This was particularly true in the case of
North Atlantic grain rates.
Passenger carryings .con¬
tinued to be heavy during most of the year.
In order to attract cargo to the "Empress of
Scotland,"

high level of business and industrial activ¬

large
day be¬

Union, comprising 130,000 miles of
linking 200 stations, was expanded during

time in

specially equipped car for the
employees in rules and safety. practices

of

On Sept. L

limitless.

circuits and

some

.'\•

....

while continuing to be adversely affected by
increasing costs of materials and wage rates, were -more

President, Canadian Pacific.Railway Company,

use, one

seem

delivery is expected

the year,

W; A. MATHER

Reserve Bank of New York and 15
large banks within that city. Airlines, department
stores,
companies and others are finding Intrafax a
operations.

Or¬

constructed.

have been placed

ritory from Windsor through to Boston was completed
some time ago and "this year all principal points between
Fort William and Vancouver were linked up by teletype.
Canadian Pacific Steamships operating revenues for

portant prop to production and employment.

-

Western Union is
carrying out extensive contracts for
the
armed forces.
These contracts involve
facsimile,
radio carrier and automatic
transmission projects.
The
nationwide wire network of the U. S.

ordered

system of
communication is progressively being installed. The ter¬

tons by
increase

such it must be recognized as

as

insurance

their

ever

Ww.steel suburban coaches

n*rced

In

large extent will become stand-by

a

regrettable
war has

of

picture form between floors,
buildings, departments, offices or branches.

in

toe largest of their kind

\

spect

World War II levels, the figure includes marginal

oompany communications in

aid

were

million.

*

capacity

fj)ne of the most promising new services is
Intrafax,
Western Union's leased private
facsimile system for use
Wfthin customer's organizations: Intrafax flashes intra-

valuable

freight units

new

in- 1952

center -flat

the Harriman Award for the best safety record among railroads
whose locomtive *miles range from one million to ten

.

mately 50% of the projected ingot capacity of the
try was built prior to 1920 or over 30 years ago.

,

Federal

builders

,

jtheJStates of Maine and Vermont, U.S.A.,

facilities. It may not be generally realized that approxi¬

.As a result of mechanization our national telegraph,
system now has a much larger capacity than at any time
id'Its history and far great efficiency than ever before.
Western Uni$p is
.constantly mahmg telegraph use more
convenient, and speeding service between telegraph office and customer, as well as between distant cities.

tween the

the

instruction
was

:

facilities which to

Walter P. Marshall

a

Five thousand and-six

this performance.-another

any

While

mid-1953.

dollars

modern diesel repair shop at Nelson, B. C.,
now in progress.

a

£hc company already enjoys a high place in the .Safety
Record-.among failroads and in an effort to improve

record

steel

ing new speed and efficiency to such deliveries.

billion

substantial

steam

1953.

woricfq;

.Nevertheless, the basic factors
impressive: Personal7 inbrfpaef! is

of Indianapolis. Messages flashed to the delivery
stations are iustiedfo homes by motor messengers, add¬

a

a

their greater efficiency and economy in
fleet of the most powerful type of diesel-

with the builders and
.

:,

the

areas

than

of
a

ders for 40

According to the American Iron and Steel Institute,

During the last three months an experiment in con¬
verting an entire city to facsimile telegraph operation
was
carried out in Indianapolis.
Desk-Fax machines
were installed
in hundreds of business offices in that
city, and streamlined delivery stations, as a substitute
fqr branch offices, were established in tthe residential

more

the

economy,

with

on

ada and

remaining high.

telegrams by merely pressing a bot¬
tom
An
electric
eye
scans
the
message and flashes it over the wire

system transfers

1952

including six. specially de¬
cars for the handling
of
c'cctric transformers and other .equipment of extraor¬
dinary weight and size. These flat cars are new in Can¬

recession which might occur will
probably be minor with production and income levels

already in

in

achieved,
growing

and the work of construction is

^importance of de¬
spending in bur national econ-^

nificant,

their

Of the many Intrafax
systems

Pacific went ahead

necessitates

,

in

a "picture" of the sent message,
ready for instant use.

expanding

an

power in the territory between Crowsthe Alberta border, and Hope. B. C., where the
southern route joins the main line.
This development

nest,

levels, the demand "for consumer durables is
forecast
at. levels
exceeding 1952, and construction
activity is expected to be relatively well maintained.
Current
high steel operating rates already reflect
these demand factors.,, The relationship of supply and
at

and

as

of

now

truly national problem in

a

ever used in
Canada replace steam
the territory between Calgary and Revelstoke
this year.
In 1953, diesel-electric locomotives will also

an'^ftp =•

not

question, in view of

and

events

busi¬

receive

as

in

power

without ' :

continue

equitable solution of what is

electric locomotives

in addition to the.

these unprecedented production

an

demands

hatf

will

approxi¬

of improvement and development.

program

Because

1953

year,

the next

over

outlay of

recognizing its responsibility to meet the

transportation

signed-depressed

the

annual

an

respect of railway finances will ultimately be

,

nessmen

that

from

of

means

.

re¬

installed

to enable

$475,000,000 will be needed

This

years.

coming to be recognized

MARSHALL

the

believe, offers the only effective

we

financial problem

a

oneration,

of

under

mately $95,000,000.

demand in different industries-will undoubtedly be sig¬
are

to

amount of

an

ever.

questions'today-is, how much longer W;

Nearly 10,000 Desk-Fax machines

other

N.

and

approach,

an

expected to be generated in the first

Company

Fax.

now

laboratories

formula

large. The Canadian Pacific has estimated that gross
capital -expenditures on road property and equipment in

my opinion, carry into the latter '-half of the year.
*;'■'<>$•.■*'
One of the most frequently asked

Desk-

as

efficient than

rate-of-return"

of growing concern not
only to the railways of Canada but to the country at

in

the

sending and

Such

substantial spending for defense will,

the offices of thousands of additional

1952

a

more

"rate-base

a

the company

solution

noticeable

a

pmy^

in

as

ability to ob¬

would be given the opportunity of
earning up to 6V2% cn the net capital investment in
railway property of $1,146,000,000.

by
result written-record

are
generally optimistic in
reluctance, how¬
ever, to ,look beyond the first half
of
the year. The
economic forces ;

cannot
public

system of high-speed
centers flashing telegrams between
all points in the nation, we equipped
firms

and

faster and

of

which

continue strong and business should be good in 1953.

omy

mechanizd

business

ment

made

were

an

expansion of its transportation facilities, the Cana¬
dian
Pacific, in July last, made application to the Board
of Transport Commissioners calling for the establish¬

I am optimistic about the outlook for
production and
income in 1953. The basic underlying forces of the econ¬

fense

miniature facsimile

advances

investment, and

and

diplomatic

and

their

on

tain the necessary capital required for the
development

President,
Granite City Steel Company

nationwide

a

1952,

are

Chairman

telegraph industry moved rapidly ahead in ,1952
to speed the pick up and delivery of messages by fac¬
simile "picture" telegraph methods, and to provide even
more
convenient and efficient service to
the public.
installed

technical

in

JOHN

The

Having

military

shareholders

government-controlled

our

MARSHALL

Western Union

President,

Recognizing the urgency of establishing a sound finan¬
assuring both a fair return to the company's

cial position

a

perts from many countries visit Western Union to tour

it will be a year without problems or without
disappointments.
Therefore, I am entering the
in a state of cautious optimism.

P.

port Commissioners for increases in freight rates.

in

telegraph systems of foreign
countries constantly seek new ideas from Western Union,
the only major telegraph company in the world still
operating under private ownership. Communication ex¬

many others, feel that 1953 will be a
business, generally speaking. I do not

WALTER

Institute,

the burden of mounting material and
wage
through further applications to the Board of Trans¬

costs

outstanding tribute to the vitality and progressiveness of our free enterprise system that leaders

beslieve
some

business

of

relief from

an

inflation have

of

duction in the terrific tax burden.

I, along with

is

It

ing year—hoping for honesty and
integrity in top governmental positions, for a less puni¬
tive attitude toward business, and for an ultimate re¬

good

Union

part of the government and

that

Marsh, Jr.

important

return to fiscal sanity

a

high-speed

secret,

communications

pervading
our
whole
people. It may be that the year 1952
marked a turning point in our eco¬
nomic history. Apparently, the dec¬
ade
of continuously climbing con¬
sumers' prices reached a peak and
many
wholesale prices | were in a
declining trend by the end of the
year.
It is to be hoped that there
will

insure

Western

confidence

on

Weather

National

lines

output, and the resulting increase in ton-miles
freight carried, the Canadian Pacific and other rail¬
were
nevertheless compelled to seek financial

ways

communications.

they
It is
surge of

wrong.

such

various

in

customers

The

states.

to

outlook,

been

of

Notwithstanding this high level of industrial and agri¬
cultural
of

member
of the American
Meteorological Society, is a private
weather consultant serving clients in 48 states, Canada
and Alaska for the past 15 years. Demands for this new
service is increasing rapidly.
To meet the growing demand for rapid and reliable
business
and
personal
international
communication,
Western
Union has
increased the capacity of
seven
cables
transatlantic
by inserting submeged deep-sea
amplifiers in the cables on the ocean bottom. Four ad¬
ditional amplifiers will be installed in 1953.
These am¬
plifiers have provided additional all-weather facilities

high, speculative inventory

remain

probably

cumulation is unwise.

facilities.

More than 35;000,000

The volume of bank loans will prob¬

possible.

as

many

desirable

is

nature

companies, including industrial and manufactur¬
ing firms engaged in essential defense production.

higher rates. A refunding program of
and should be undertaken as

t6rm securities at

The company also expanded in 1952, the
pushbotton private wire systems it leases to

extensive

Thursday, January 22, 1953

fisheries and the manufacturing plants, and an unabated
activity in the construction-trades, resulted in substan¬
tially increased demands upon the country's railway

the past year.

68

page

...

as

1951

a

grain

carryover

of

crop,

petroleum, minerals, and forest
in the growing output of farms,

naimo.
and

"Marguerite"

and

The rapid expansion

Northern

taking place in the Central

part of Vancouver Island requires

other

Number 5188

Volume 177

.The Commercial and Financial Chronicle

..

'•

V

uqits of the fleet to augment the service performed by
this ship in

Elaine"

"Princess

now

performs

the

pressing needs of the present and the challenge of the
future.

the peak summer months.
the "Princess Mary" has been retired.

LDue to age

The

Plans

Vancouver-West-

ments, depends

with

production and refining of about a million barrels per
day. This reserve will be the result of continued ex¬
pansion of facilities at a faster rate than the growth in

obtain sufficient financial
replacements and improve¬

may

our

transportation

our success as a

company.

country, particularly one of such distances as Can¬
ada, can remain strong and growing without the services
of well-equipped and efficient railways.

reserve

ment.

surpluses have frequently caused extreme
production and refining rates and in
capital expenditures programs.
If Iranian oil returns to world markets, the surplus

shortages

automobiles and trucks when not transporting

L. F. McCOLLUM
President, Continental Oil Company

Pacific

Canadian

Air Lines entered into negotiations ■
to operate services between Vancouver <
and points in Mexico, Peru and Brazil.' It is expected
this new service will be inaugurated during 1953.
'
year

At

the first North American air line to
e'rn

type of aircraft.

this most mod-

use

-

outlook for business in

They will be put into service early

all

of Fiji, cutting the present flying time in half.

way

and

being acquired

are

Kitimatj the Air Lines

between Vancouver and-Prince Rupert was1
into Terrace, B.C., which is the airport forLarge scale iron ore development on the Que¬
bec-Labrador border required increased service on the
Montreal-Quebec-Seven Island route and mining activi¬
northwestern

in

the

Quebec
Lines

Air

and

northeastern

via

Ontario

a daily round trip to To¬
Throughout the year, the Air Lines
provide service for the Government of

between

Canada

Vancouver

and

Tokyo

in

with its participation in the Korean War.'
While

:

1952

Korean
about

connection

Canadian expansion

of 'the Canadian Pacific in respect of its rail operations
remains one of adjustment of its earnings to meet the

Continued

from

page

"

of them

the

From the low point

past.

r.of

housing starts in 1933 to the
high point in 1950 was a period
17

this half-cycle, then,

years;

"consumed

as

full cycles in
7

much

time

as

some

the past.

recently-published

weir

in

re¬

"Stabilizing Construc¬
tion," prepared for the Commit-

port

on

Economic

Development,
Messrs. Miles Colean and Robin¬
for

tee

.

son
^

Newcomb

of

existence

question the very
building cycles, al¬

skepticism

their

though

appears

*

in

least

the

case

of.

residential

major imbalances, all
favoring a; high level of
production until balance was at¬
tained.

First, there
ance

of

was

It is

building.

a

debate I do not

to enter at present. The
historical data are scarcely adepropose

to - support a thoroughly
convincing argument on either
quate

-

^

'"

side of the

housing
clined

question. At any rate,
have already de¬
20% from their peak

starts

some

for reasons I shall
explain later, I expect that they
in

*

1

1950,

and

will decline

still

more

in coming

'

If there is no building cy ¬
be in a downward phase,
decline of more than one-third

years.

cle
-

a

-

the probable continuation of the

are

in

residual fuel

for

demand

1951, and we may expect only a 3 to 4% growth in 1953,
contrasted with the 10% demand increases in 1950

as

and 1951.

good many changes
result of additional refining
capacity and new crude and product pipelines currently
planned or under construction.
The effect of governmental policies on the industry's
in

During 1953

patterns

supply

ability

to

tion

facilities.

a

the necessary adjustments cannot be
-It is to be hoped that the new Administra¬

will furnish

which

we may see a

as

make

overlooked.

subse¬

a

more

favorable economic climate in

operate. The return to business of a greater
share of the management of its own affairs through
elimination or relaxation of controls is necessary in order

reduced

to

to

keep

economy

our

free and healthy.

Resumption of

Continued

capacity to produce goods and the
then-current price level.
Corpo¬
rations
were

and

to

from

the

peak, extending over a
period of several years, will serve
the argument just as well. If there
»Hs a Cycle in residential building,
and if it is In its downward phase,
it would normally reach its low
'

'

Helped An Industry and
Small Town Get

the

individuals

Bellaire is

their

cost,

convert

low in

money

.

.

charming village in Michigan's vacationland, 46
City.

Lamina Dies & Tool

>

It needed

Company is

relation to

the incentive to
into goods was

and

Together.
a

small industrial plant to

help stabilize year-around employment.

assets,
credit- was
cheap
and
abundant, prices of manufactured
were

a

alike

liberally supplied with liquid

products

a

miles from Traverse

enterprise in Berkley, Michigan.
branch

strong.

a

successful manufacturing5

It needed a location for a small

plant to produce guide pins and bushings for dies.

Second, stocks of goods in the
economy

abnormally

were

.

Bellaire seemed just

low,

all the way from sheets and shirts
to turbo-generators and

There

eight

was

pipelinesshortage of some

a

million passenger

automo¬
biles below what the 1946 popula¬

tion, employed as it was, would
normally have supported, and a
shortage of some 2V2 million nonfarm housing units below a nor¬
mal

supply for the 1946 number

of non-farm

Third,

families.

large part of the world
was short of both goods and pro¬
ductive capacity as a direct result
of the war, and looked to Amer¬
ican industry and agriculture for
the
necessary
supplies, not to
a

mention

the

United

ernment

for

the

of

was

one

ate

their

the placer-except for one thing. Bellaire

comparatively few communities in Michigan that oper¬

own

did not have

electric

systems.

-This particular electric system

capacity enough to meet the needs of the proposed

plant.

.

,

13

Officials of Bellaire and Lamina talked with Consumers Power

Company. We offered to buy tffe village electric system at a fair
price, rebuild it and connect rit with the Consumers state-wide
assuring the industry of plenty of electric

electric network, thus

for present and future.needs. The Village Council submitted

power

the

proposal to the voters, who approved it at a special election.

Gov¬

States

wherewithal

to

.>
'
point in the late 1950's and its next buy them. C
To summarize this cycle frame¬
peak around the late 1960's. | Ac¬
the
postwar
period
tually, the bumper baby crop of work of
the past; fiye or; six years; will, be briefly, we started the postwar
reaching marriageable age around boom in industrial activity after

It

was a

happy solution for both Bellaire and Lamina.,

,

r

l

,

1970 to

~

r

of

1975, extending the period

record

family/ formation

and

..urgent demand ror housing for at
least another five years.. :

one

of the most severe

reductions

im

activity

;

that

the

American

i

recent

past,

current

future trends in business activity.

,

/

.

.

Present Imbalances

to the analysis of
of the major imbalances in

Turning
some

war-time peak in November, 1943,

now

Both

the

long

have

that

short

and

little meat

a

characterized the

When

the

on

transition

from

war

place in 1945-46, the United

States

or

small industrial plants. Ancj Consumers

than three million

Michigan people in 63 counties, likes to help

communities and industries get

together.

•

•

lows

in the

such

joint

1946-47

lows

economy was

faced with




a

at worst a mild
the

we

tell

you more

about Michigan?

INDUSTRIAL DEVELOPMENT DEPARTMENT

period. From

in

these

.

two

interruption when

shorter cycle declined
.

May

past

history
of
American
industrial
production established definite

possible to cycles, the cyclical prospect was
that skeleton. clearly for a sustained rise, with

production to civilian production
took

large

Company, supplying electric and natural gas service tq more

cycles

the economy, it may be

put

Power

purpose

interpreting

)

friendly cities and villages of Michigan offer many excel¬

has ever met. From the

economy

of all this discus-., to the 1946 low, the Federal Re¬
sibn of business cycles has been serve Index of Industrial Produc¬
to erect a skeleton framework for tion declined 95 points, or 38%.
The

The

lent locations for

during

Continued oyt page

73

CONSUMERS

and the

changing geographical pattern of supply. Total domestic
demand in 1952 has not been much more than 3% above

superabund¬

a

in relation to

money.,

'

*

and

shall have to ad¬

How Consumers Power Company

of

number

of

demand,

'us

decrease

current demand.

meet

T'

tne'familiar 15-to-20-year cycle

of

in

we

11

ahd is scarcely recognizable

war,

.

1952,

Cycles and Imbalances
Affecting the 1953 Outlook

as

upsurges

therefore, that

i

t

;,

relative

The refinery strikes in
product stocks below safe levels.
Following the strikes, record. refinery runs for several
months made up the losses, and at the present time,
petroleum supply appears to be more than adequate to

May,

outstanding as a year of continued
on a gratifying scale, the problem

was

and

additional

appear,

plans-for the immediate future to meet a de¬
in the rate of growth of total demand. Additional

crease

Immediately following
World War II, increased productive
and refining capacity was required to
satisfy pent-up civilian demand. The
later, the Iranian situation, brought

expansion, of

quent

"

•

■

War,

two

occur

our

problems facing

products.

extending the Montreal-Val

in exports to

would

It

just

oil

These
requirements were
superimposed upon a normal steady
growth in demand for petroleum

Earlton.

continued- to

the

mand.

d'Or-Rouyn service to include
ronto

peculiar to

den and unexpected increases in de¬

extended

Kitimat.

necessitated

are

decrease

States.

nation;
however, certain forces at

During the past few years, the in¬
dustry has successfully' met several
calls upon it for readjustment to sud¬

operation

ties

over¬

the

of

industry.

for domestic air services.-

Because of the development at

trends

which

work

Hawaii, as well as between Vancouver and the Ori¬
In addition, a number of Consolidated Vultee Con-

vair-240's

economic

there are,

Douglas DC-6 airliners will be used between Vancouver
ent.

a

The oil

1953.

industry, in general, follows the

in 1953 between Australia and New Zealand, and Hawaii

by

intensified. We can expect
during the year, as for¬
eign production and refining capacity is increasing and
should be adequate to meet foreign demand, even with¬
out Iranian oil. We have already experienced a shrink¬
age in our foreign market for lubricating oils, which has
resulted in an oversupply of this product in the United

season, a great deal of thought is directed
attempting to foresee the problems the New
Year may bring, so as tp be prepared to meet them in¬
telligently as they arise. Many statements have appeared
recently in the press concerning the

Comet jet airliners nearing comple¬
England will make Canadian Pacific Air Lines 1

in

in

in the United States may be

this

toward

'Two deHavilland

tion

or

fluctuations

rail cars.

during the

The problem of absorbing these additions to
capacity will present a challenge to oil manage- <
In our
volatile
and
dynamic industry,
small

demand.

zation from this vessel it will be designed to carry pas¬
sengers,

71

By the end of 1953, therefore, the industry i? faced
the likelihood of having reserve capacity in both

efforts to make this ad¬

our

No

ship

to handle rail cars between Van¬
and Nanaimo. In order to secure maximum utili¬

couver

we

continue

to

resources

replacing the "Princess Mary."
prepared for the construction of a

being

are

On the outcome of

justment, by which

view-Gulf Islands Service

self-propelled

(351)

'

POWER

JACKSON; MICHIGAN

COMPANY

on

page

72

Financial Chronicle.... Thursday, January 22, 1953

The Commercial and

VS

Oct. 31, 1952, an increase
realized in the num¬
ber of residential customers. During this sam©~ period,
sales of electricity to residential customer increased by
19% and during the month of October itself, electric
sales to homes increased 22% Over the same month in
12 months ending

For the

the normal

\ '

71

Continued from page

v

•

supply and demand

operation of the laws of

of the problems of mal¬
distribution of petroleum products with which the country has been plagued, particularly in getting adequate
supplies of distillates to the East Coast. OPS regulations
fcave prevented the price adjustments that would nave
xnade possible the economic movement of supplies from
areas of oversupply to those of shortage.
Looking beyond 1953, the problems caused by the exjpected surplus of producing and refining capacity may
continue for a time, particularly if the long-predicted
downturn in the nation's economy should occur. How¬
ever, the dynamic nature of American business assures a
Hong-term growth in the demand for petroleum products.
For the future, therefore, the oil industry will have to
continue the search for new reserves and the construction
Of new and improved refining facilities.

j

number of residential cus¬
conclusively indicative of the
population growth because it does not reflect those
families moving into- numerous housing developments
and trailer parks which receive electric service through
tomers, howevirf, Is not

Also for the 12

age
and

Bank,

of

It is

Arthur E. McLean

start

again

us

Administration will make great

and that billions of dollars can be saved. Use¬
less bureaus and agencies will be done away with, and
countless thousands of persons removed from the pub-

agance

'

be read¬

ily absorbed by private enterprise; become productive
an expanding economy and no longer a burden
gb taxpayer.
This year business will be encouraged;
xiot intimidated and threatened. The new program in

labor in

Washington will be one of justice for all.
In anticipation of this favorable Washington back¬
ground, confidence in the future is apparent everywhere.
American "know-how" we have; with hope and incentive

prosperous New

1953 should be a

While it is

S. C. McMEEKIN

The

usual

economic

barometers

show

,

that

unusually prosperous

South

year,

sand

indicate that the outlook for the State continues itp

feright.

In the

area

te

served by our company, bank clear¬
ings and postal receipts established
new high
records during 1952.
In
November for instance, bank debits,
which

considered

are

cators of business

useful

indi¬

activities, showed

substantial increases

over

and

anticipated that the defense program will
the present levels, competition on

products will be increasingly keen, with
prices important factors in determining

for

the

reporting
period.
The

a

a

10%

with

Charleston

increase

for

the

proved labor productivity.
WARD MELVILLE

has

been

multi-million

so

slightly

above it in the first half, and
is

expan¬

C.

McMeekin

imminent.
the

South

A

special

committee

of

Carolina

Legislature is
studying the project and an estimated figure of $8,000,000
lias been mentioned for the expansion of and addition
State

Farmers

Market

in

Columbia

became

There

a

not

This

reached rec¬
and $4,000,000 has

of

continues to experience a substantial
customers and the increased utilization of
is heartening.
Both portend the healthy
growth of the 23 counties in our service area.

this

be¬

history will
One of the prin¬

instance,

repeat itself.
total

military
culated

high

economic

activity

expenditures—can
in

degree

advance

of

with

accuracy.

—

be
a

our

absence of

Ward

in

the

result in

even

Melvilla

expenditures

increase for shoes in the-

an

general retail advance. This is possible only,

a

because of the

high level of discretionary buying power

,

,

in the present economy.

Chairman of the Board, Mountain States Power Co.
*

'

While certain factors

affecting all types of business in
adequately evaluated until ^policies of
are more clearly defined* at the
present time those policies are, to a certain extent,, re¬
1953

the

be

cannot

Administration

new

flected by the type of men already
designated for the key policy makingpositions.
It appears certain, that 4
business will operate in a much more
favorable climate than in the past

v

oi

,

.

.

several

and that such detri¬
inflation, price and

years

mental factors

controls, and the like, will be

wage

of

serious

less

a

as

nature.

business must not

However,;

expect

radical or

changes, nor would such be

sudden

desirable.

Lumbering and its allied industries

to

comparable

volume of busi¬
that of 1952„

decline may be expected

some

Z.

lines, new uses of wood

certain

Less

be serious.
are

E. -Merrill

to offset it to
products

it appears that prices of farm

governmental dictation and interference

highly essential, thus leaving

the practical farmer,

raiser, orchardist, and producer of
specialized crops more leeway in working out their own
problems. Uncertainty as to government policies has
contributed much to the difficulties of successful farm¬

dairyman,

poultry

ing, dairying, and other

allied businesses in the North¬

west.
There

not

does

appear

to

be any

why the

reason

mining industry in the Pacific Northwest should not go
forward in 1953 to even a better year than in 1952. This

effort and the
minerals are maintained.
Speaking of the electric light and power industry in
this area, it can and will go ahead and provide the
power so necessary to the growth of all other industry

is

especially true as long as the defense

practice of stockpiling essential

if

it

can

its pur¬

receive more favorable treatment in

government generated power. Such growth
is difficult to maintain when government shows favor¬
itism between its customers and subjects the distributors
of

chases

of its

product to the uncertainty of short-term contracts

containing burdensome provisions.
If the industry is
to be successful it must be assured of receiving its power

requirements over a substantially long term of years.
The present shortage of electric power here in the Pa¬
cific Northwest is, in my opinion, temporary and not of
sufficient magnitude to seriously affect general business
in the area during the coming year. Additional power

fairly

Nothing

expect any substantial modification;
pM
inevitable effect of these

in certain industries is not

a

needs of

the

matter of

the area's basic industries and to the

development of its natural resources rather than to the

promotion of huge power consuming plants under the

I believe that such'

guise of National Defense.

a

broad

should not

prove

general policy will be forthcoming.
Financing
difficult

of

the

industry

power

in the coming year,

tend to rise

money

may

cost of

utility

although the cost of

somewhat.

In late

new

years

the

in the Pacific Northwest has been

money

higher than elsewhere due to the prominence of gov¬
ernment

in that

field

but

even

with this handicap, the

privately owned utilities have been able to secure ade¬
quate funds for their needs.
As

elsewhere,

a

do much to insure

cal¬

in the world situation permits us to

company




for

reasons

some

are

cipal reasons is that a large segment

in our area
been appropriated for the reactivation of the Naval Air
Station at Beaufort as a Marine Air Corps Base.
growth in
electricity

in

that,

New and expanded construction likewise

peaks during 1952

of the most

lieving that the current forecast may
turn
out to
be
an
exception and

xniilion-dollar-a-month business in October and Novem¬
ber of this year.
* V
■
ord

It is, in fact, one

record.

bad

the terminals.
The

rare.

conspicious "caution" signals in sight
at the beginning of the year!
The
universally accepted forecast has a

sion program for the facilities seems
S.

perhaps
slightly below

it in the second half. Such unanimity

impressive

dollar

ideas

could

year

to

that something like 99% of all businessmen
economists are forecasting a continued high level of

It appears
and

-

developed by government projects must be devoted more

President, Melville Shoe Corporation

general activity in 1953, at about the 1952 level,

increase in port commerce at

Charleston
that

state

the business.

November

in

retail

The emergence of new, dynamic
shoe industry during the coming,

be expected to decline somewhat but, with greater
emphasis being placed upon marketing, this should not

higher'prices, since it is not possible in a short period
of time to offset increased labor rates through improved
methods and there have been few indications of im¬

two

ume

fashion

At this writing

about

secure

to

goes

stores and/or for shoes.

may

problems of labor will continue with no relief
in prospect, with costs continuing at high levels, brought
about through increases granted during the past several
years, and with some upward adjustment
in selling
prices justified by such increased labor costs.
It is
also probable that the demands from labor will force
additional
higher costs which must be reflected in

Charleston and Columbia,
metropolitan service areas.
Columbia had the highest dollar vol¬
1951

our

Many

devices.

The

President, South Carolina Electric & Gas Co.

Carolina has enjoyed an

at

-

Much the same

larger portion of the consumer's dollar

in

these devel¬
converted into
Earl
R.
Mellen
production requirements. Neverthe¬
less, other development programs will
be continued and call for additional engineering and
technical personnel for their solution.
Since many of
the new products for defense purposes require close
tolerances and high quality of workmanship, there will
not only be a continuing shortage of competent engineer¬
ing and technical personnel, but the same shortage con¬
dition will prevail on skilled labor.
continue

income after taxes.

consumer

by-products, some of which are just
being brought into production, will serve
a very large extent.

be

must

opments

in

crease

forecast would apply to shoes. We can look forward- to
about the same or slightly higher dollar volume, unless a

While

reached when many of

service

*

assure a

ness

with

who will

•

control

commercial

Year,

•

insurance increased 12% over 1951; while

should experience a

closely asso¬
developments and it is
believed that the time has now been

ciated

(In 1952, purchases of new life
retail sales in¬
that would
gain in retail sales, even without a material in-

have recorded.

economy

defense programs were

prosperity, but great progress will be made

lie payrolls. This much needed manpower cam

and

tronic

the

on

strides forward in the elimination of waste and extrav¬

added,

viewpoint that during the year 1953 we will

curtailed.
It is, however, believed that the
requirements for the defense pro¬
gram itself will continue, as repre¬
sented by certain types of products
of direct interest to us, such as elec¬

Much will have to

the; people.

I believe that the new

our

rather sharp decline in capital expenditures

will be sharply

in 1953.
'

a

,

advanced, taught, and in many quarters accepted.
Bureaucracy has grown to fantastic proportions; with
the Central Government rapidly becoming the master

sroad to real

'// !\

E. R. MELLEN

which
will apply throughout many industries. Companies who
have expanded under the defense program, constructing
new
buildings and purchasing new
■
i"'
equipment, will unquestionably have
completed these programs so that
their expenditures of a capital nature
see

foeen

to

their manpower.

President, Weston Electrical Instrument Corp.

;

.

corrected

strive, through alert merchandising, and .
promotion, to increase that proportion. Recently, they,
have failed to show the gains that other segments of the

Z. E. MERRILL

This is part of a
long-range program which keeps in mind that an electrie utility company must, of necessity, be the leader
in any progression of commercial and industrial enter¬
prises with their accompanying increase in the influx

,<

many

and

.Assuming that spendable consumer income in 1953 is
the same as in 1952, or slightly higher, we can
expect retail sales as a whole to be about the same or .
slightly higher. This will be true, unless the proportion»
of consumers' income spent in retail stores should rise.

materials.

period has a budget of $27 million.

-

of

approach

about

Urquhart Station the company's normal
construction and expansion program for the 1952-1954

"
'
problems to solve not; only in
3L953 but in all the years that lie ahead. For years the
economy has been fed on inflation, reckless spending
and waste. Strange and unsound economic theories have

he unlearned

horsepower.
this installation was $45,000,000. This
be revised upward somewhat due to price

in

,

the new
Administration.
While this "intangible" has not been '
rated too highly by many economists; it is a fact that ;
will be reflected in thousands of daily decisions, tending
to support and expand general business activity.

Excluding

ability, of unquestionable in¬
tegrity and loyalty to these United
-States. It is a truly great All Amer¬
ican Team that will pick up the reins

and not the servant of

400,000

increases

nized

be

capability
The original estimate of the

ultimate cost of

•outstanding leaders been selected to
£11 the important posts of our Na¬
tional Government; men of recog¬

will

project is the com¬

planned for this plant as needed and

of families from which they draw

with one
gain, but

diversi¬

designed for expansion to an ultimate

is

business-like

the

creased only 4%.) If such an increase occurs,

company's major construction

has had to

Already we have a preview of the
incoming Administration. Never be¬
fore in our history have so many

There

'

it

-

to win for America.

industrial enterprises continues a

fied trend.

Additinal units are

should be a happy one. The November
election, a great victory for the American people, marks
fcfee beginning of a new era. It has been a definite turn
to the right in our economy, and an overwhelming
■defeat for corruption, incompetence,
■end dishonesty in government.
An
cutraged citizenry has finally spoken.
3it has put a great leader at the head
■©? the nation, with a clear mandate
to establish responsible government
sad to bring order out of chaos.

government — a team
-thought—not of personal

number of commercial customers increased by 889
industrial accounts by 72. The influx of new com¬

pletion of the first two 75,000 kilowatt units at Urquhart
Station, a coal-burning steam-electric plant which is
being built in Aiken County on the Savannah River by
a wholly-owned subsidiary.
The construction schedule
i calls for the
first unit to be ready for use by mid-sum¬
mer with the second unit to follow shortly thereafter.'

The year 1953

of

months ending Oct. 31, 1952, our aver¬

mercial and

Our

in

confidence

Retailers will

meter.

master

one

ARTHUR E. McLEAN
President, The Commercial National
Little Rock, Arkansas
.

i& the

increase

The

1951.

-

A second principal reason is the feeling of

guesswork.

slightly over 10,000 was

-of 10% or

ivoutd eliminate a great many

.

r

(352)

this, too,

I feel

lessening of the tax burden would
a

more

rapid business expansion but

certain, will be forthcoming to

some

extent, possibly toward the close of 1953.
All
the

forecasts

Korean

elsewhere.

are

based

situation

and

upon
no

no

material

change ilk

serious outbreak of

war

yolume 177

Number 5188... The Commercial and Financial Chronicle

CLIFFORD W. MICHEL
President, Dome
The Canadian gold
a

declines in the world
the cost of

Mines Limited

decline

the

mining industry has just completed

disappointing

the

U. S.

dollar.

dividends

For

lack

of

the

with
ade

new

year,

140

over

producers

If

prognostieator

that

say

for
he

the

of

dec¬

the

industry

As

considered

1953

were

them

of the

the

spiral

of

Clifford W. Michel

past decade which has, with¬

decline,

the

U. S. dollar has been passed and will

price

the

industry

receives

the

for

gold

it produces.

That

either

the

dollar

price of gold

in the free

in

1952,

unilaterally raised in

effort to broaden

an

world trade.
On

the

first

hopeful.

Over

Continued

the

score

the

from

past

industry

has

there

year

from

continued

of

the

to

reason

have

been

be

sharp

the

longer

goods

consumer

to

appears

on

inflation, will recommend such

and

houses.

In

combination

the

goods

be headed

headed

be

downward

from its peak in 1950. In the
past,
the development of cycle patterns
such as this that is

shaping

fore

the

Korea

up

1953 has been followed
by
major cycle declines, including a
drop of 20% or more in industrial

production

during a
12-month
period somewhere in their course.
would

major

normally require

vent such

some

external force to pre¬

new
a

pattern from develop¬

ing.

to

outbreak

at

the

*

It

under

was

Act

of

has

a

1946

was

these

circum¬

Employment

enacted.

Seldom

major national policy been

propounded

under

more
propitious
realization.

circumstances

for

its

prompt

Staggered Ending of Shortages

of

We're still at it!

fighting in

Korean

War

automobiles

ended

was

and

its record of

but

the

the

rapid

first

to

be

met,

expansion of

tele¬

soft

sorbed

1947,

quent

by

goods

but

was

the

ab¬

subse¬

inventory readjustments

were

the

considerably cushioned by
continuing heavy demands for

durable goods, both for
and

for

industry,

been

in

to

be

1950.

even

not been several
cerned

issues

Sylvania

approximately

$230,000,000^

other

had

Sales

would

higher had there
strikes, which con¬
than

economic.

increased

its total
manufacturing and related storage
space nearly 30%, to approximately
4,000,000 square feet during 1952,

better

,

we

plant and
shall start 1953 in a

condition

than

ever

before.

We completed or

acquired four large
manufacturing plants in 1952, fin¬
ished a major addition to another
plant, and began operations in two.
important laboratories. In addition,
we

now
are "building
two
plants and another laboratory.

Don

G.

Mitchell*

more

To serve the sales fareey
moreover, we have opened new sales offices and fleMl
warehouses and are building others.
In 1952 sales by some of our manufacturing divisions^

^

_

and sales in many

limited

only by

product lines in other divisions were?
ability to produce with the plant.

our

Continued

consumers

utilities

and

agriculture. By late 1948, demand
lessened for major electricial
ap¬
pliances, and order backlogs for

producers' equipment began to be
worked off. By that time, how¬

ever, relatively little progress had
yet been made toward ending the
major shortages of automobiles




Long Island, during the last

progress

on

page

74!:

Business and

Meanwhile,

the

war-torn

na¬

Not

only did
their

from

in

had

of

the

early

postwar

have

begun

to

the

for

compete

housing short¬
accomplished in a
large part since 1949. In the early
postwar years the formation of
has

been

progress was

made in

families

was

about the

had been in 1945. Since
ever,

i

the number of

as

move

convenient network of

our

Nassau-Suffolk

area

large, skilled labor supply, adequate banking

re¬

to markets and convenient transportation

jH'H

to local and

world-wide locations.

To maintain its gas
consumers,

this

and electric service to present and future

the Long Island Lighting Company has undertaken

huge expansion

program

a

to serve the ever-increasing needs of

progressive community.

If you are

searching for

us

help by giving

to

our

remov¬

same

a

sources, easy access
if/

This relief of the

age

tle

offers

their old customers, who

American market.

over our

Away from the rush and the crush,

they began to recapture

passed by default to Ameri¬
producers. More recently, they

can

employees find comfortable, attractive homes

prices. And here personnel and goods

highways and parkways.

needs, for which
they had looked to American pro¬
duction

has continued

they find excellent working condi¬

place to another

one

they provide more

own

years, but

reasonable

at

of

Europe and Asia were
regaining their economic strength.
of

year,

industry have continued their movement to Long

tions. Here their

tions

MORE

and tremendous growth residentialfy,

relieved.

ing the wartime shortage of hous¬
vision quickly took
up the slack.
ing. By early 1949, the ratio of
The abnormal demand for
many nonfarm
housing units to nonfarm

consumers'

$162,000,000
have

Island's ideal locations. Here

families, primarily because
of marriages of returning service¬
greatly aided by the men, was so rapid, and the build¬
fact that these
shortages did not ing of new
housing units was so
all end at once. The demand for
retarded by
materials shortages
table model radios, for
example, and government controls, that lit¬
of

expected

commercially and industrially.

the

was

one

are

curtailed

The continuation of the
postwar

was

{

mid-year.

new

boom

1952

shortages of housing, at least in
nationwide terms, had been greatly

some

stances that the Full

the

compared with the previous all-time
high of $202,800,000 in 1951 and

OFFERS INDUSTRY

Before the
shortages and restrictions incident

for

It

as

Long Island***

peak in 1953, and the long production substantially, the ap¬
cycle of residential building ap¬ parent shortage of passenger
to

the

Congress

course to

sharply

Sylvania Electric Products Inc., which expects to shmsfr
a
13% gain in net sales in
1952, anticipates an event
larger percentage gain in 1953. Sylvania's net sales in?.

a

a

risen

DON G. MITCHELL

economy

a

pears

has

equipment,

activity in late 1949 and early
1950, had economic activity gen¬
erally on the upgrade even be¬

cycle is in an upward
phase that should normally end
sometime
in
1953.
In
addition,
the
still
shorter
cycle that is
characteristic of textiles and some

for

that

declined.

and from the standpoint of

shorter

production

production

other

slump and inven¬
r Now,
however, this favorable tory correction of 1949, autos and
cycle picture has been reversed. home building led the way out of
The long cycle rise since 1947 has the
slump with sharp increases in
clearly reached a peak, and the output. Recovery in other lines of

of

of

President, Sylvania Electric Products, Inc.

Canadian

the matter of

wishfeil

power

Sept. 30, 1950, Canadian gold mines re¬
the Mint $38.50 per oz. for their output.

the

of

a

is the basic reason for the
dollar, but it would appear
that the premium has been accentuated by a flight from

durable

lines

purchasing

cost

of money

as

Canadian

cycle.

other

the

side

few hopeful signs for the Canadian goM
industry for 1953, but there still is the dadfe
over-hanging of a price too low in relation to at
are

71

page

rise

in

is imminent in tihe

the

on

mining
cloud

the

Cycles and Imbalances
Affecting the 1953 Outlook
a

lip

higher U. S. buying
price for gold, forecasting is clearly impossible. That
there will be pressure from the Prime Ministers of the
British Commonwealth for a higher price to improve
the position of sterling and to end the dollar shortage,
is certain.
However, to believe that the Republican
Administration, pledged to sound currency and to a war

that the United States' buying price for the

or

stability

On the third count,

markets of the world will rise from the lows
experienced

metal will be

There

currencies, including the U. S. dollar, as well as
by an unusually large favorable trade balance in 1952.
As the flight to the Canadian dollar ends, and trade
balances revert to normal proportions, it would seem
that the exchange rate should fluctuate around parity,
which would have the effect of increasing the gold
mines' revenues by $1 per oz.

this exchange rate determines in part

as

internal

(3)

recently

strength of

interruption, boosted operating costs as represented
by material, supplies and labor, is at last at an end.
(2) That the peak of the strength of the Canadian
dollar versus the

of

borders

economy,

S3

thinking.

Canadian dollar was freed from exchange
1950, it has strengthened from a 10% discount
to more than a 4%
premium, and is currently at approxi¬
mately a 3% premium. At this level the Canadian seller
receives slightly less than $34 per oz., or $4.50
less
than its selling price of two years ago. Inherent strength

prom¬

.inflationary

than

more

time when no major deflation

a

American

control in

out

soon

direction

Since

to

place:

That

give

subsidy to those mines which sell their output to
Royal Mint and do not use the free world market.

ising, he would have to feel con¬
fident that several of the
following
conditions were going to take
(1)

the

ceived

the

probably

at

in

Until this happens, the Canadian Govern¬
recognizing the industry's difficulties as well as
importance to the country, has not only continued
its subsidies to the gold miner in the form of "Cost
Aid," but for the year 1953 will increase the rate of

ago.

prospects

will

Administration

new

its

were

a

States

The

ment,

compared

as

months.

of the dollar.

operating costs
upward, earnings
accordingly.

compelled to close down, leaving
only 59 straight gold producers to
face

United

in

suffered

profit, five mines

recent

to
the fight against inflation which, in
turn,
should make for price stability in the U. S. and Canada.
None of these factors has as yet produced lower unit
costs lor the mine operator, but the trend
appears to be

As

move

and

price for many raw materials, and
living index in Canada has recorded a modest

in

service

year.
While ounce production of the
metal will show a modest
increase, the monetaiy valu6 of this production will be
lower by virtue
of
the continuous
strength in the
Canadian dollar as compared with

precious

continued to

(353)

you

an

industrial

the facts

Industrial Development

on

or

general office site, let

Long Island. Just drop

a

line

Department, Long Island Lighting

Company, 250 Old Country Road, Mineola, N. Y.

it

1949, how¬

new

families

has declined, while the
number of new housing units cre¬
year

per

has been consistently above
family formation and previ¬

ated

both
ous

As

peak rates of home building.
a

result, the ratio of nonfarm

housing units to nonfarm families
is now
for

back about to

the period from

its

1910

Continued

on

average

to

1940,

page

75

LONG ISLAND LIGHTING COMPANY
MINEOLA, N. Y;

'

?•

7i

i

• *

,

*

<*<

4

t

)

4

Continued

from

page

^

¥

'

tion

.73

equipment and manufacturing force that were available.
Now we are in a position to make substantial production

If business

gains.

at the

continues

hign

same

level at

which it finished trie old year—and our economists be¬
lieve it will continue at the same high rate througn at
least the first three quarters of
1953—we think we
have added the facilities that will enable us to increase

sales to

substantially higher level.
Sylvania's defense business during

'

a

approximately

.

1952 amounted to

of total sales, compared with 20%
in 1951. With the company's current backlog of unfilled
defense orders totaling about $85,000,000, defense busi¬
in

ness

1953

30%

might rise

the 1952 ratio

total sales, but

further

aid

increased

to

will

sales

those

to

necticut River

near Littleton, New Hampshire.
being written, New England Electric System
companies' electric output is running 12% to 15% ahead
of comparable weeks of 1951.
While it is too much to
expect that we can maintain these increases throughout
1953, we do look forward to a continuation of the upward
trend in electric usage.
The New England area, fortu¬
nately,"has few so-called "defense industries," and whereever there is defense production it is coming largely from
manufacturing plants which are also turning out prod¬

As this is

This lack of

dependence

continued

which can better adapt
changing conditions, should they occur.
To sum it up, for New England Electric System com¬
panies we expect in 1953: (1) a substantial increase

product fields in which we already
field of electronics, for instance,

industrial

healthier

economy

itself to

(about

10%)

promises so many applications to peacetime use of prod¬
ucts originally developed for military use, that we are
certain to be extremely busy in civilian development

creases

of about 6% in commercial and industrial electric

and

business in the

occupied.

are

The

production.

sales, (3)
in

total

in

sales

to

residential

all-time

television

sales

set

year

1950.

sales

year

while

high,

for

the

close

came

industry
those

to

Factors which could make

in history for television

a

whole

the

record

as

of

customers,

(2)

in¬

sales

of

electricity,

(4) a continuation of good
served by System companies.

area

the

distributors'
of

coming

warehouses and

television

UHF

dealers'

on

in

many

President, Canada Dry Ginger Ale, Inc.
With

recent

abnormally low inventory of sets in manufacturer and
advent

r.w.moore

floors, and the
areas in the

new

year.

ton,

Administration taking office in Washing¬

new

a

forecast of the business climate for the coming
year must be qualified by our assumptions as to what
the new legislation will be, and the effects of the new
policies over a period of time. :,
any

We

Picture tube sales

were strong in the last four months
1952, reflecting increased set sales, and should follow

of

be

Sylvania's picture tube
sales in the past year were almost 50% greater than
in 1951. The company's
receiving tube sales also were
higher in 1952, due partly to brisk set business and
partly to important increases in sales for defense use.

entirely to

defense

orders, enjoyed

40%

a

favor

to

and

the

result

end

to

the

development

of

principally responsible for the in¬
major programs of this division is
device

a

known

as

the

mercial production of a transistor that will
perform with

high reliability.
Lighting sales should show a substantial gain in the
coming year. Factors which should make this increase
possible include the introduction of

new

lighting prod¬

ucts, heavy demand for incandescent lamps, and greatly
expanded photoflash lamp production.
Sales of incan¬
descent

lamps reached an all-time company high in
1952, while photoflash sales were restricted only by
production capacity.
A new photoflash plant now is
under construction

in

Winchester, Ky.
the components field, both the
company's Parts
Tungsten and Chemical divisions increased their

In
and

sales

in

1952.

The

notable

for

showed

substantial

than

be

the

half of

with

fact

the

that

in

sales

rises.

Parts

outside

Export sales

increases

It

is

both
to

divisions

outside

business

were

companies
that more

anticipated

Division's

in

1953

will

companies.
second

were

highest in company history.
Because of the growing
popularity of television in for¬
eign countries, the International Division's sales
may
reach

record

a

peak in 1953, aided by increased sales
sets, set kitsr components, and picture and
tubes abroad.
Our Canadian
manufacturing

of television

receiving
subsidiary enjoyed

sales increase of almost 60%.

a

.The

Atomic Energy Division, formed in • 1952 to
facilitate a greatly expanded
program'of research and
development for the Atomic Energy
Commission, now
is superbly staffed and
tories in Bayside and

equipped in large hew labora¬
Hicksville, N. Y. While the work

being done
to

that

say

Sylvania's

by

this division

is

this program will
continued growth.

irwin

l.

contribute

Present

indications

electric sales in

are

are

and

business

in

For

and

expect

we

consumption of
without

occurs

effective in

product

New

England

building

between

nine

watts by 1975.
started

have

program

electric

a

12

we

to

000,000
sion

as our

more

This, it should be noted,
of

new

our

long as people are economically
secure
enough to purchase food products without selfdenial, they will certainly not curb their appetite for
carbonated

food

beverages, which

bring

more

small bottlers seek to

acceleration

an

national brands.

siderable

In

increase

bottlers

new

the

properly

are

bottling industry, the

ably

classified

as

our

year

ahead will prob¬

franchising, as more and
ally themselves with the large

own

case, we

expect

a very con¬

in

Canada Dry beverages.

j. d. a.

become much

more diversified and includes a wide
of customers in the aircraft, oil field, construction,
chemical, and general manufactur¬

range

ing industries, this preview of
is

confined

ing,

to

the

tunneling,

outlook

quarrying,

indications

point

to

expanded

the

active

Moore

minerals.-

All

over

the

on

for

Wherever

means

a

even

second unit of our Salem Harbor Sta¬

All

Western

by

self with respect to the Korean sit¬
to

uation

and

augurs

well for

ample,
have

his

organize

"team"

vigorous attack on

a

such, for ex¬

the halting of the rapidly

as

spiral.

inflationary

ascending

involved

become

in

We
"dog-

a

chasing-his-tail" process which re¬
sults from rising costs of industrial

products, which are reflected in ris¬
ing costs of food and other living
Ben
necessities which, in turn, result in
m
-»•
industrial wages and salaries;
and then the whole process starts over again.

Moreell

.

This must.

be halted!
We

,

also

are

obligated

continue our programs

to

of

improving the industrial equipment of America so that
we
can produce more goods
at lower costs, and make
more
and better jobs for our increasing
population.^
The steel industry has been in the forefront of this
industrial development. As of Jan. 1, 1953, the industry
will

have

per

the

war

The

of ingots

capacity of over 116,000,000 tons

a

increase from 95,500,000 tons at the end ot
August, 1945.
T
increase in the capacity of Jones & Laughlin

year,

an

in

immedi¬

Corporation has been from 4,741,500 tons

ately after the war to 6,406,500 tons on Jan. 17 1953.
In addition to the increase in ingot capacity, we have

improvements and expansions in our

substantial

made

finishing equipment.
We now face,.the
challenge of justifying the expenditure of $420,000,000
in our total postwar expansion and modernization pro-r
rolling

and

the im¬
capacity and

We must make the new equipment and

proved old equipment produce at maximum

efficiency in order to justify this program.
'■
Undoubtedly, the very substantial increase
&

is

It

L.

in

the

capacity poses a serious challenge to
inconceivable that the industry will op¬

steel

country's
J

into the indefinite

future.

Therefore, highly competitive times are sure to

return,

maximum

at

erate

capacity

& Laughlin

probably within the next year, and Jones
is

preparing itself to meet them.
The principal improvements to our productive capac¬

ity arenas follows:

(1)

The

Works

Cleveland

and

"

•*

open

new

: '

*
.

hearth

' V

furnaces
Open

Works.

-

Pittsburgh

at

hearth

furnaces

produce steel from pig iron, scrap, and alloying metals.
(2) A larger blast furnace to replace an old one at
Cleveland Works. We produce pig iron in blast furnaces

Pittsburgh, Aliquippa and Cleveland."
^
A new electric-driven blooming mill

at

at

(3)

Pitts¬

burgh which rolls larger ingots than we have ever been
able to roll before.
A blooming mill shapes ingots into
slabs and blooms for further

(4)

A

new

processing.

central scarfing yard at Pittsburgh Works.

slabs and blooms- are cleaned off
torch, preparatory to further processing.
(5) An electrolytic tinning line at our Aliquippa
Works. This line uses the latest process of coating steel
In

scarfing

a

an

with

yard,

oxygen

tin.

This

"tinplate"

where it is made into the

to

goes

cans

can

manufacturers

that eventually wind up in

'
(6) A battery of 59 by-product coke ovens at Ali¬
quippa Works. Here we start with coal and make coke
kitchen.

your

be

to

used

all

in

of

blast

our

the

volatile

In

furnaces.

Our

the

process,

materials from the

used by other processors to

are

use

mak°

we

coal—and

many

prod¬

dynamite to nylon hose and perfume.
Coal

in coke

Plant

Preparation

at

East

Frederick-

~

ovens.

new

,

*

towboats, the diesel vessels "Vesta" and
..

Mines

Benson
in

in

New

York

State.

This

ore

ore

separated

from

it

in

a

J

&

A.

Morrow

rising demand for

Europe, as well as South Africa and
Australia, is engaged in modernization programs in their
coal mining
enterprises and this interest likewise ex¬

L's

»

L

to

complete the following
projects in 1953 and in later years:
D.

&

found

a fine powder and
complicated washing

process,

J.

;

..

J
is

rock, which must be crushed into

the

mechanical mining equipment.
expan¬

,

taken

"Shannopin" and 23 new river barges.
(9)' Expanded ore preparation facilities at

explora¬

continuing and

us.

action

President Eisenhower to inform him¬

(8) Two

explora¬
mining and

goes

all of

on

vigorous

"

shows

which

The

for

their

their

search

obligation

an

Since the war, many coun¬

have

and the

in general,

industry,

town, Pa., near J & L's Vesta Coal Mines. At this plant-,
the coai is separated from rock and slate and prepared

pres¬

machinery through¬

activities and

Year, American

will be faced with a new
set of conditions to which all of us must adapt ourselves.
The changes in the national Ad¬
ministration and the challenge which
the new Administration faces impose

(7)

important markets,

t

industry, in particular,

ucts—from

ex¬

deposits of consequence,
is immediately focused on
developing these sources of wealth,

l.

steel

equipment.

these

New

the

Laughlin Steel Corp.

generally agreed that with the coming of

I believe it is

these

min¬

and

attention

irwin

ben moreell

collect

1953

for

actively developing their minerals to increase their
exports and strengthen their local economies.

with

Morrow

basis for improving the cur¬
countries that are short

many

Chairman of the Board, Jones &

of

licensing activity, with scores of
investing ;in Equipment and supplies for

production, of

tion

$30,-

own

as

products.

Within the

other

project.




soft

cobalt, "titanium, copper,
asbestos, lead, zinc, iron, potash, and

part of this unprecedented electric

During 1952 the

the

records in per capita

uranium,

of

are

gram.

few exceptions,
new

a

a

currency, American mining equipment enjoys a
high priority for dollars available in such countries that

frequently.

more

recovery' of minerals.

expen-

than

and

world,

million

anticipate annual

stimulus

upon

kilo¬
This 30-year
activity,

average

products.

ber of consumers. And

tries

immediately following World

ditures

its

demand for such

War II, is expected to cost about
$3,000,000,000. In New England Electric

System

and

This optimism is based upon

the

long-

requirements

and

company

To this must be added the often overlooked fact that
the country is steadily increasing in
population, in num¬

ent

operat¬

based

our

persuading the American public to buy

more

tion

in

both

for

provide

exchange position of

of hard

Steel

models, improved
formulas or any promotional appeal based
upon change.
The saturation point, if any, is not in sight. Hard
selling
and merchandising, and widened
distribution, are the
mainstays of the industry. They have proven enormously

managed

ing

a

carbonated

Year after year; with very
drink industry has established

out 1953.

customer

as

their earnings.

the

materialize

industry as a whole.
number of factors..'

particularly in textiles, shduld con¬
tinue through 1953.
Looking beyond 1953, the business-

range

will

the

In

conditions
which
began
last August in the
NewdEngland area,

companies

too

business

beverage industry, the outlook is *quite favor¬
able. We at Canada Dry are
budgeting on the basis of
anticipated increases in both sales and earnings, which

ploration

improvement in

industrial

electric

the

,

now

general

particular will continue to

the

to
are

Although the business of our company, which for¬
merly was almost exclusively mining machinery, has

England Electric

higher

of

be

we

President, Joy Manufacturing Company

improve in
System companies during 1953.
Sales of electricity to household
customers are showing
weekly increases, commercial sales

New

not

that

entity despite' the fact that
prosperity
has
found
industries
hard-pressed
to

some

materially to

moore

that

speak

maintain

R. W. Moore

will

rather

recent

our

classified, it is possible

President, New England Electric System

-

unified

"transistor,"

which is believed to have many possible
applications in
electronics equipment.
A large section of engineers of
the Electronics Division is
preparing the way for com¬

of controls, tax
strengthening of the

industry will benefit unre¬
I am not implying that

but

was

such

servedly.

ness

in¬

prone

of

wj.ll

through

The area of uncertainty lies
assuming from this that all busi¬

in

and

One

business,

dollar

good,

equipment

that the in¬

sure

Administration

removal

as

in 1953.

crease.

fairly

new

reduction, and

in sales in 1952 and expects a substantial increase
The division's development of new components

crease

the

means

The Electronic Division, which devoted its
operations
almost

all

are

tent of

upward trend again in 1953.

an

Since minerals

rency

other serious problems

the biggest

1953

include

wide.

increase of somewhere between 6% and 7%

an

Sales of Sylvania television sets to distributors reached
an

of

defense production plus

upon

the general diversification of industries now taking place
in many New England communities combine to make a

be

potash, and other mining operations.
Consequently, the demand for the more modern types
machinery to mechanize these operations is not con¬
fined to the United States and Canada, but is world¬
tends to iron ore,

ucts for civilian business.

the increase

expansion of product lines. Our research and engineer¬
ing staffs have laid the groundwork for many significant
additions

We also started a $20,000,000

put into service.

was

plant addition at Providence, Rhode Island, as well as a
$50,000,000 hydroelectric development on tne Upper Con¬

few percentage points above

a

of defense to

is not expected to be large.
A

Thursday, January 22, 1953

The Commercial and Financial Chronicle...

(c:-i)

expects

additional
•

A new bar mill, a battery of 79 by-products coke
ovens, increased storage areas, and parking facilities-^
all in the Hazelwood expansion in Pittsburgh.

(1)

(2)
at

Electrification of the steam-driven blooming mill
The modernization of this mill, which

Aliquippa.

holds the

world's

during the last

production record for rolling blooms
should be completed by n:id-1953.

war,

Volume 177

(3)

Number 5188

.

.

^The Commercial and Financial Chronicle

Development of J & L's Tracy Mine, a deep-n shaft
mine in northern Michigan, part of J &; L's pro¬
for developing sources of low-grade ores, .against

iron
gram

possible depletion of present ore supplies,
'three more diesel towboats for our River Trans¬
portation Division.

first of the electric-driven continuous
rolling
the stands of the mill
arranged in tandem.

(6)

Modernization

of

the

Virgina. Limestone is used
We at J

&

L

mill
was

look forward to

the

in West

utilization

pleted facilities and to the shaping of
with full confidence in the future.

our

of

ing the last several years.
fit from

com-

this trend

air

The

stiffened

competition

predicted

in

home

new

threshold of

Standard is well known.

a

of

new era

accomplishment, which

sales during 1953 is

we can

THEODORE

panies

MUELLER
& Standard

engaged in the production of defense mate¬

The

government's stretchout program for defense
production and sales of these products. Our
company's defense production operations in 1953 will be

Sanitary Corp.

Looking
and

constantly

search

defense

declined from the record 1951

beyond

facilities

ply; of

building will
space
and will be
development
and

contain

and

used

into

1953.

Not

having

wouldn't know how to

:

narrowed

a

*

ing

quarter of 1953.

defense in

Government restrictions
relating
metals

to

in

the

.to limit

of

use

for

building, particularly those

on

both

construction, acted

products.

our

'

ferrous
to

and

reduce

market

There is

for

These regulations tended during the
year
of homes built and the
plumbing and

civilian

the size

Continued

from

American

a

projection of present trends
ball-—and if I did, I
it—I prefer to abide by avail¬

hazards

of

sheer

'

and

*

home;

the

of

That

are

we

life here

better

;
*

of

the

few

1920's

as

to

result

a

will be
the

of

fh,^1930's.

re+

sharp
the

In addition,

the trend to - earlier marriages in

■4-recent

years

marriages
-5

has

that

borrowed

would

from

otherwise

activities

family

forma-

.»■absolute

shortage of housing, can
be expected to reduce the pressure
./ for new home building in the next
*

;
*

few

Any substantial rise
unemployment, leading to a
renewal of "doubling-up" of famyears.

in

'r ilies.

would

demand

for

further
new

reduce the
home building

Consequently, home building ac¬
tivity in the next few years will
depend more than normally Ion
the
of

,

demolition

repair
-

and

-substandard
and

replacement;

housing,'

andvon;

modernization

isting dwellings.

of

between

demands
we are

War

rean

stimuli.
direct
and

away,

in

past

introduced

First, of

the

strong

course,

military demand

material.

the

Second




was

for
was

Ko¬
new

the
men

the

tied

be

can

result,

a

calculators

of

two

we

an

layed civilian needs will take up the production slack.

History will repeat itself, for just as TV came along in
1946

absorb

to

growth,

tremendous

our

World

War

II

the fantastic electronic developments

for commercialization

.ready

real¬

so

skills,

experiences

will require

fabrication

and

the

facilities

goods
to

that might

the

and

we

of

much of
<

the

our

safety.

Armed

scarce

price,

up

that

Continued

on

NIW YORK

* CAJ

STATE

ion

cm

region

rise

or

added

either
to

of

become

substantially

fillip

a

in

activity

;throneh the first quarter of 1951.

V

Of these new

stimuli'introduced

the Korean
consumers

was

first to

buying scramfcde

and

and

the

War,

the

was

businessmen in

early

1951.-

Next

the impact of stockpiling. The

next in line is

.

«

1

*

»

«

»

*

*

to buy

inventories

on

clearly the

wave

of

An estimated
area

we

serve

York State

—

residential and commercial customers. Nearly

70% of the population of the
about 35% of that of New

49,000 of ihese

—

live outside cities. There

are

congested localities, no cities larger than
100,000. Manufacturing of many and varied

products is well distributed over 43 counties—
our 50 largest industrial customers are located
in 30 different communities. This partly ex¬
plains this region's long record
good employe relations.
More than

64% of

our revenue

flected-in

500, OQO

.

station,

TEN YEAR STATISTICS booklet/is
* v*

j

our

$76,000,000

construction

pro¬

in progress for the three years ending
1954-. Ground was broken last fall for a new

comes^from
m

farms. Electric customers at

gram

of stability

and;

are

the
eiuj of 1952 totalled* 387,000, gas 92,000.
83% of the revenue is from the sale of^electricity, 14% from sales of natural gas.
The continued growth of the region is re¬

no

*

J

kilowatt steam
Cayuga Lake.

electric

generating

on

available

on

request.

"

expansion in olant and equipment.
Many

industries,

companies,

and

already

Continued

still

more

have"

more

on

page

77

have

page

of

might

now

'

.

.

turning out thou-

become scarce,
businessmen

scramble

stock

goods

consumers

plant

released

even

,

the scramb'e of

degree

military readiness is attained, I feel certain that de¬

of

on

have had

years

As

tomorrow.

necessary

more

greater boom in the production of
capital goods than the boom that
followed World War II.
Finally,

late 1950

activity began

however,

that

As

of

Prop of Korean War

fade

electronic

marvelous

military demands taper off when the

for critical
the policy

directly to defense require¬

subside

As the last of these major props
to

less

ments.

ex-' by

.

to postwar business

the

by providing strong tax incentives
to expand capacity throughout the
whole wide range of products and
or

in

produced for artillery fire control, will be required by

civilian* economy.
The effect of
this policy was greatly augmented

have occurred in the middle 1950's.

reduction

currently making for military

expanding p'ant capacity, xand
production of b a s i o materials

This

tion, coupled with the end of the

.

was

enough to cover . both military
needs and the requirements of the

years,

reduction in birth rates from

■[

program

Third

at marriageable

ages

are

we

requirements will find a place in the civilian economy.
multiple controls, for instance, now being

The elaborate

jmctm: M«VKI

of

.

what

of

Much

,

placed at Uncle Sam's disposal in insuring our 'national

difference

and

non-

radio phase of the art—we have largely succeeded in
leveling out production throughout the average year.

able to provide

productivity, engineering—yes, and
world

because of the highly seasonal character of
But in this postwar era, thanks to

year

rapid evolution of industrial electronics—the

the

at

t-

the
number of young people arriving
duced,

r

-stockpiling
' materials.

\

v

each

home radio interest.

for that better life and again for its
face of serious threats, speaks volumes

production

We also experienced the violent peaks and slumps

try.

other electronic

and

radio-electronic parts industry

»

further increase is in pros-

a

the newer

73

page

J-

pect for 1953.
^.'.'Gver the next

are

lived almost entirely on the fortunes of the radio indus¬

fortune-

Cycles end Imbalances
Affecting the 195 J
-

Then there

parts jobbers to the servicemen.

Until recent years our

idaioi-eieccronic

Forces.. In the former category

.

control

our

daily use, and
wearing out. Controls
And here again, we have a

must be replaced.

time

the

istic patriotism in a dark hour.

non-ferrous

the

the

to realize how

growing market for replacement controls to and through

crystal

attributes
Victor Muchor

these problems beginning in the second

ease

easy

60 million or more radio sets, are

MUCHER

require¬
ments of the military. On the other,
we
are
expected to keep right on
manufacturing parts for radio, tele¬
vision,household appliances and other

steel

J expected, to

a

in electronic phonographs, tape recorders, high
fidelity sound systems, home sound movies, and so on.

industry is leading a double
(oday. On the one hand, we are
charged with supplying the multi¬
tudinous elements entering into the
radar, loran, fire control, communi¬

% Standard kitchen equipment. The shortage also affected
^production of steel boilers and other heating and air con-.
I ditioping equipment.
A more adequate steel supply is

hazard

can

we

usages

Our

stable production levels during

more

radio set, it is

per

and must continue to expand.

the

procedures

telling.

profit

supplies caused by the work stoppage
in the steel industry
during the summer restricted the
planned expansion of production and sales of American-

-

the

of

cation

Reduced

,

in

that

so

business has multipied several fold in the past six years

industry in
this so-called postwar era which still
smacks strongly of war, relieves one

1953.

j

two

of floor

research

manufacturing

re¬

The

life

likelihood of

a

feet

square

expanded

center.

The definite pattern established
our

~

.These inventory levels at the close of the year were
down for both manufacturers and wholesalers, indicat-

v>

are

a

a

use

able facts and figures.

"margin.
T

research

week,

over

All the while the 20 million TV sets in

Frankly, this is simply

sup¬

beginning of 1952, industry
were
relatively high, and
supply of principal products exceed¬
ed demand throughout the
year. The
resulting price softness plus in-

creased production costs resulted in

.

Plans

President, Clarostat Mfg. Co., Inc.

At the

Mueller

for

continued

1952.

addition to the

per

In
ex¬

15 million radio sets for home, portable
and auto usage in 1953. Inasmuch as the average TV set
calls for a dozen controls as against one or sometimes

in

inventories

E.

an

45,000

testing of

VICTOR

materials,jare favorable in¬

dustry factors.:.;'-;;

very

250,000 sets

figure of

techniques.

levels,

improved

an

American-Standard

Louisville

the

at

new

1953, however, the present out¬
look for a sustained
high level of
building activity, coupled with gen¬
erally lower inventories of manufac¬
tured products and

1953,

expanded its research activities in

underway for the construction of

for

'1 heodore

ceeded

determined by the requirements of the defense effort.

changing needs of
effort, and government
restrictions on the building industry.
As
a
result, sales and profits of
American-Standard during the year

the

a

produced, while the best guess for 1953 is 7,200.000.
the radio-set field, the year-end rate of production

were

ages;

that

considerable percentage of cur¬
military end use, the civilian
requirements keep rising all the while. The past 12
months have seen something over six million TV sets

curtailed

Operations in the plumbing and heating industry
1952

are

rials.

dur¬
largely influenced by a combination of
four basic factors,
namely, the transition from a seller's
market to a buyer's market in the
industry; metal short¬
^.

ing

sucn quauty
witn electrical

controls

never

Granted

Some of the corporation's plants and subsidiary com¬

E.

producing

tandem

of

rent business income is for

by working together.

President, American Radiator

Ms

of

are

alarm clocks and costly wrist watches.
before has our industry—or perhaps arty*,
other industry for that matter—been called upon for
such a wide divergence of fabrication standards. One is
strictly price; the other, quality, regardless of price. To
be dealing with dimes and dollars, under one roof, calls
for a very high degree of adaptability of one's produc¬
tion facilities and personnel.
Meanwhile, our company
has attained its highest level of dollar business yet in our
several decades of control and resistor manufacturing.

American-Standard will bene¬

expected to result in a demand for
higher quality products, the type for which American-

we

cheap

Indeed,

since larger homes provide a market

improvement and expansion of our Corporation,
with its 45,000 people,
place a revitalized J & L on the
achieve

between

substantial increase

conditioning systems.

The

as

each working day, such as
prices, say of one dime,

unit

at

1%, and corresponding mecnanical
accuracies, at unit prices often exceeding $100. There
is as much difference between these two categories as

for additional bathrooms and require larger heating and

.

projects

new

tolerances

a

items

controls

category

multi-section

items

mat

in the number of three-bedroom homes built during 1953
as the result of the development of larger families dur¬

flux in the blast furnaces.

a

IV

latter

to

It is expected that there will be

mills, with

limestone quarries

as

at
the

low-priced

Hiiu

me

in

improve the building situation during 1953. I believe
a large number of
schools, hospitals and other build¬
ings are required and that there is a need for approxi¬
mately one million new homes each year.

1,4)

of

rauio

The-recent relaxation of these restrictions is expected

the

10) Improvement of the
14-inch hot; rolling
Aliquippa. This rolling mill, unique in. industry,

sards

heating equipment installed and to curtail certain types
of commercial and public
building.

ore

75

(355)

I

NEW YORK STATE

ELECTRIC & GAS

76

76

(356)

The Commercial and Financial Chronicle

Continued jrom page

75

GORDON

ness

to be

fact

that

Despite

line

CHARLES S. MUNSON
President, Manufacturing

Chemist^ Association, Inc.

The

took

breathtaking ascent

almost

dustry to
bn

the steel

Reduction Company, Inc.

Chairman of the Board, Air

the chemical

of

good,

in¬

interruptions during the year, notably
strike, total business volume during 1952 was
the

and

As

and

industries

the

all

which

serve

de¬

Government

west with

and

south

industry

the

trailblazers,

level;

business
Gordon

shipment.

Charles

S.

Munson

ing program.
The record

$1.5 billion spent

construction in 1952

on

paralleled by new production peaks in existing op¬

was

erations.

By October, the index for industrial chemical
output, for example, had soared to 574 from its 1935base of

1939

100.

Rising production and physical expansion made their
impact in two important quarters:
First,

had

consumers

saving drugs,

much-in-demand

plentiful supplies of life-

more

synthetic

new

fibers, plastics, and other
products.
Industry,
too,

chemical

found chemicals easier to

Sulfur and chlorine came
while ammonia and
benzene supplies improved
considerably.
As another
significant benefit to an economy hard-pressed by in¬
flation, chemicals resumed their traditional downward
back

to

normal

get.

during the

price trend with

year,

drop of 3Vz% in 1952

an average

pared with 1951.

com¬

-

Second, the nation's defense program drew important
strength from the year's chemical advances.

Increased

output made possible the lifting of most controls, bring¬

ing closer the attainment of expansion goals for the 56
chemicals designated

defense-essential

as

materials

by

As evidence of the

industry's importance to prepared¬
ness, these 56 represented nearly 30% of all DP A ex¬
pansion goals set thus far; in addition, chemical com¬

panies accounted for 10% of all rapid amortization

The

industry

human and

new

achieved

also

improvements

industry.

In

with the

same

on

substantial

The

progress

year

in

sharp

saw

already good safety record for the

an

the

cer¬

plant and equipment.

community relations.
first

eight months

These

1952

of

compared

period in 1951, the frequency rate of in¬

companies intensified their efforts to abate air and

water

local

pollution and made excellent progress in many
areas

public cooperation and understanding of

as

the problem increased.

The Association, through mem¬

ber companies, also began to do its
part in building up

^ientific

future

for

manpower

the

nation

and

the

in¬

programs.

Outlook for 1953
If

there

are

serious

any

threats

to

further

progress

duce

business

demand
and

companies for that unhealthy

declining earnings.
try

Without

the

situation

is

industry because the

need to

use

many

adequate earnings,

doubly

to expand and

difficult

pace of

in

the

indus¬

rates, which has

been

would expect that this

strong demand for credit should
1953, at least during the first half of the
On the other hand, increasing costs will continue

continue
year.
to

a

problem for bank management.

dependent

Nonetheless,
chemicals
among
tures

for

record

its

will

U. S.

there

is

continue

position

to

to

reason

push

closer

industries in the coming

construction

level

every

of
as

will

fall

very

believe
to

first

place

Expendi¬

year.

little

that

below

the

1952, and the industry will strengthen
the

leader in

research and

development

activity.
The

applications

everywhere: in

of

the

results

of

this

manufacturing, in medicine

activity
and

are-

health,

in food productidn and
processing, in textiles and paper

^.and rubber, in conservation
lization

of

wastes,

in

the

of raw materials
fuller

development

.natural resources, in atomic
energy*
No industry has broader

horizons. No

look for

mining, particularly iron ore, is bright and the
developments in the Williston Oil Basin and the taconite

territory in northern Minnesota will

uti*

of

ou£

industry, t be¬

move

ahead,

all with considerable benefit to this district.

However, this is primarily an agricultural district and
outlook for agriculture at the present time is not
bright as it has been during recent years. There was

the
as

lack

a

of

moisture last spring,

timely rains during

the

and

while

summer,

received

we

which

helped
and sub¬

C.

A.

Norris

It

all

fact

of

purposes

form of

income is declining.
While we do not anticipate
that the agricultural segment of our
economy will suf¬

severely

during

the

farmer's

net

1953, there is

income

will

be

the possibility

somewhat

that

below

the

in

terms

of

current

exoected

$100 billion

to

spend

the

than

more

income

I

see

have

in

ment

of

trying

production

until

military

in

is

we

are

mentions

one

have

a

Korea

.

Our

self-styled economists and experts on monetary
are by and
large not producers, and therefore
cannot speak with authority except in an academic sense,
As a rule
they take no account of the source of the basic
commodity behind paper currency and behind all other
representation

paper

Gold does not fall

manufactured; it
must meet the
to

as

comes to

form

methods
tion

of extraction

becomes

most

a

James

J.

Nance

sounder economy.

thing I am sure, businessmen everywhere are
sympathetic with the tremendous problem faced
by the
new Administration of
halting the inflationary trends of
recent years and at the same
time, maintaining our

national economy on a solid basis so
that the pendulum
does not swing too far in the other
direction.

more

that there
than five million

value.

it be

result of exten¬
then its discoverers

as a

even

usefulness.

and

In

conver¬

fact, among

treatment.

Cost

element in

determining the

of

produc¬

knows that costs have

everyone

multiplied since the $35 value

fixed by statute in

was

to return to the basic

ever

fundamentals of sound money and economics,
the standard of all
ate

according

current

the dictates

to

cost of

values shall not be

of

made

political

whereby
to fluctu¬

expediency,

production of this accepted standard of

value, gold, plus

a

reasonable profit, as is the case with

other kind of business, must be taken into account

determining
only,

a

real and sound value for gold.

we

can

again have the backing for

In that
our

cur¬

and credit that is commensurate with current busi¬

volume

as

expressed in dollars of greatly reduced

power.

is

created

rather

than

are

by

immutable.

When value of

governmental

through

his

of

man's

dictum

labor,

and

(fiat

his

in¬

labor, its value cannot be fixed and main¬

simply

through

violation

principle of economics.

desirability of
change,
of

gold,

as

is sound, for it accurately
man's

one

another.
open

of

Its

labor

the

fundamental

Because of its scarcity

ownership,

tendered

true value

must

in
be

and the

for

measure

a

exchange
relative.

ex¬

the worth

measures

for

An

that

of

all-world

and free market would quickly determine that.

HENRY

ments

a

one

studies indicate

of

vital

true value of gold and

reduction that would make for

for

of

nor can

cost of winning it from nature. This all involves great
risk, followed by employment of scientifically developed

tained

brought
step-up, will

the automotive

only

us

standards

heaven,

inevitable cost of extraction and

ment of nuclear energy

as

from

the factors making gold the superior metal for
monetary
purposes are its relative natural rarity and
the high

cut-back, should it take place, together with

far

accepted

discovery and

standard

a

of

manna

possible government cut-backs in the
foreign aid pro¬
gram could result in somewhat
reducing the over-ail
economy. This could well be a start toward
reversing
the general
inflationary trend of the last few years,
which would be good for the nation if it
resulted in tax

so

a

matters

ucts

is

term¬

perfectly agreeable to going along with the de¬
fense program whatever
requirements may be.

Of

be expected
proper course of action.

alienable right to ownership and possession of the prod¬

are

a

j .
Congress

new

crops up, as if inflation in a big way
already present while gold values remain un¬
changed from 1934—who is being fooled?
<

money)

a

Such

circulating

of

revaluing gold the ever-present

The laws of economics

great bearing on the arma- *
ment production
requirements, but I am personally con¬
vinced with my contacts
throughout the nation recently
that the people are committed to
re-arming for defense
and

values

not

currency

advised what the

such

for

bogie of inflation

was

forecast

program

Without

valuation

currency

acts and deeds of the

upon

formulating and approving

ness

»

about

dollar

administrative support that might

When

buying

'employ¬

a

of

mining until those conditions
established; nor without them* can

firmly

rests

the

rency

is to be under the
Administration.
*

new

base

future for gold

no

been

It all

and

in

obviously

to

and

is to

If gold

ounce.

new

way,

business

now

sustained security at all in investments, particularly
undertakings.
I

any

produced

Approximately
70%
of
Federal
spending during the fiscal year end¬
ing June 30, 1953 will be military,
therefore

it is

or

there be any economic stability in
monetary matters, or

any

approximately 37V2%

or

national

either

under-valued

metallic

purchasing

Therefore, if the world is

NANCE

President, Packard Motor Car Company
Any forecast of business for 1953 must, of course, take
into account government influence in business
activity as
revealed by the estimate that for the twelve
months,
ending June 1953, Federal, State and local governments
are

the

world

the

to

1934.

of the past few years.

JAMES J.

down

media.

sion

fer

boils

stability in international exchange, under
convertibility, it must need to be revalued

picture,

net

the

on

that

$35 per fine

remain
and

sive search and

Abun¬
easily change this
but the fact remains that we are going into
1953 more dependent on
timely spring rains than we
have for some years.
In addition, agricultural prices
have been on the down trend, while there has been
very little reduction in the farmer's costs, so that his

written

gold was
over-valued in the early 30s

last year's crop, the fall has been
very dry
soil moisture is deficient in most of our
territory.
dant moisture in the spring could

In

lieve, will travel faster toward its horizons*




and

valuation.

in

the weather, vary somewhat from the na¬
tional picture. Our industries should do well. The out¬

encouraging.

as

been

of

simple

on

Whether the fighting in

adequate depreciation allowances.

regarded

gold, and on monetary
matters generally, there is not much
more
to be skid regarding the ad¬
visability or necessity of gold re¬

In the Ninth Federal Reserve District conditions
may,

to be stepped up or whether
ination to the fighting can be

plant, and the consequent

be

subject

in

present

pre¬

gold.

So much has

1953

general strengthening in interest
favorable to bank earnings. We

a

prof¬

then

under

Unfortunately the outlook for 1953

year.

a continuing strong
business and consumers,

both from

develop.

substantial part of
earnings to bolster in¬

a

of

cannot

activity has resulted in

for credit,

chemical

research and development

fast obsolescence of old

means

in

paradox: rising sales and

hardly hope to continue

can

And

responsible

was

value

some

there has been

levels

1952

previous

operations

prop¬

were

vailing costs of production and fixed

almost

during

The banking business,-as most other businesses, has
just completed a very satisfactory year. The high level
of

handicapped

in

invest

the

and trucks sufficient to meet the requirements

cars

Excess

Tax

to

plant

new

of its market.

in chemicals in
1953, they lay in excessive taxation. The
Profits

during

did

prior to 1943

at

schools

guidance

itable

correspondingly

of

career

erties which

high

goods

sustain business at high levels. With materials
supply, building projects can be completed,
and the automobile industry, which was seriously ham¬
pered by shortages during 1952, should be able to pro¬

during this period.

their

years

better

dustry by offering direct assistance to plant community
in

in

it

production, my

during the past year,
preceding, has been in husband¬

in

The Manufacturing Chemists' Association and individ¬
ual

much

as

the

NORRIS

ing and preserving assets of inactive gold mining

all dynamic parts of our economy and should

are

average

juries fell 11% and the severity rate, 14%.

expects

as

A.

help

some

the Defense Production Administration.

tificates issued for

Murray

low-cost water

With this year's growth,
the half-way point was reached in
a current five-year $6 billion build¬

a

several

released by the Securities
and Exchange Commission of a sur¬
vey made in collaboration with the
Department of Commerce, private

good regional supplies of petroleum
natural gas and ready access to
markets via

capital

at

for

recently

went

and

Eastern

and

holding

Juneau Gold Mining Company

chief

in

industry,
experiencing some decline in
the backlog of orders, will operate at
a
high rate of capacity during the
year; and, as indicated in a report

expansion, making the most of

new

the

continue

while

models

Aside from affiliations with base metal
interest and responsibility

ma¬

while

bulk of its

the

vary

1953

■

President, Alaska

spending for defense,

will

purposes

Taking the direction of some ear¬
lier

will

from that accomplished
the year just ended.

life.

national

business

of

terially

fense, flowed with reassuring abun¬
dance, while vigorous research and
development brought new benefits to
agriculture,
to
manufacturing,
to
health, to virtually every phase of

their

C.

with business activity on a
enter the year 1952, there seems
be no reason to assume that the

volume

new

in

price.

on

we

to

in the year just past, with
construction both at an all-time
high. Chemicals for defense, and for

momentum

new

production

highly competitive. This is evidenced by the
practically all manufacturers are offering in¬

value

ended

year

high level.

very

creased

some

predominant role in the American economy

a

MURRAY

President, First National Bank of Minneapolis, Minn.

Thursday, January 22, 1953

...

K.

NORTON

President, Walter Kidde Nuclear Laboratories, Inc.
With

has

the

widespread public interest

of the Atomic Energy

come

to

liberalize

in the

develop-?

by industry v the repeated state¬
the

Commission that the time

law, and the advent

"Administration less sympathetic to socialistic

of

an

philosophy,

1953 may well see the termination of government
monop¬

oly in this field and the beginning of

a

conversion of natural forces to the

of civilization.

use

new

era

in the

industry is concerned, all

should be
cars

but

a

we

market

in

1953

expect the busi-

Continued

on

page

78

JVolume 177

Number 5188

...

The Commercial and Financial Chronicle

Continued from page 75

Cycles and Imbalances
Affecting the 1953 Outlook

(357)

duction much greater

than the

parent requirements

of

than enough plant and equipment

be

clearly

a

The

excessive.

large military program and a
high level of civilian goods pro¬

it

duction.

and

solete.

com¬

petitive battle will then he joined
to
determine whose capacity is
with

excessive,

most

strong

shall
of

in¬

volume

required to

carry

': '

r

problems of the

Capital Goods

this

demand

as

you

for

of

means

capital

sterilizing

much

as

of

industrial

excess

capacity as
military margin of
safety, and of absorbing the cost
of keeping it in readiness. In the

goods,

is needed for

all know, fluctuates widely.

It has two most essential elements

a

employment

from

prospective profits. We are
approaching
a
situation
where
essential

both

of

these

will

be

greatly

elements

weakened. The
heed for additional plant capacity
to handle current or clearly pros¬

would

and

income

normally
of

excess

develop

capacity

were

been

in

world

addition

in

in

next

Korea

might

well

sud¬

rise

for

The outlook

1953

for

depends primarily

the
steri¬

tions

that

are

and
With

and

1953

the

on

made

1954
and

1954

assump¬

about

inter¬

military
develop¬
considerable uncer¬

tainty, I shall make the customary
assumption that the international
and military status quo will con¬

way

or
another; the problem to be
pective demand is rapidly disap¬ solved is who should bear the
pearing. The ability to pay for cost, and how.
tinue.
\
additional capacity has been re¬
On this assumption, I believe it
The
fourth,
stimulus
arising
duced in part by heavy taxes, but
is evident that the major elements
from the Korean War—the direct
tnore basically by a reduction
of
of strength that have supported
military demand for men and ma¬
pre-tax profit margins in the past
the postwar business boom are all,
terial—is still very much with us,
two years, during which prices of
now
or
potentially, elements of
and it promises to be the largest
many products have been reduced
weakness. We are approaching a
single factor in the 1953 business
at the same time that their cost
outlook. As presently scheduled, stage of the business cycle that
of production increased. It seems
has always in the past preceded a
the production of military goods
Very clear that at lower volumes will continue to increase
through major decline. Some of these de¬
of business the reduction of profit
clines have been prolonged; more
most of next year, and the aircraft
margins' Will continue, both be¬ program will continue to expand of them have been short, sharp
cause of increased overhead costs
corrections, but all of them in the
into 1954, offset in the total by a
per unit and because of the com¬
past have included a drop of 20%
tapering-off in other programs.
or
more
in industrial production
petitive struggle for a larger share
of the available business.
within a 12-month period. If such
Discounting Military Spending
Whether the military produc¬ a drop were to start from the 230
Perhaps the most curious thing
about this excess of plant capac¬ tion program will actually pro¬ level in the present Federal Re¬

ity is that it is the very situation
that we made a national objective
little
so

more

that

than

industrial

two

years

ceed

into

1954

schedule is

an

on

the

open

announced

question. For

serve

Board Index, it

at least to

would

administration faces

basis

capacity could
support both

the

that the new regime will not fight
manufacturing and trade. The the inflation all through \ a de¬
possibility of both these elements pression.
'
is clearly developing at the pres¬
It is important, despite what¬
To the extent the

boom

in

that

is

business

prolonged or extended, the subse¬
quent adjustments will be more

difficulties

ever

years

may

constantly
still

thing,

munitions

pouring out

a

plants will

quantity of pro¬

to

the

average

wise

It

clear

seems

the

that

now

boom will not have run
its course until sometime around

present

middle

the

1953.

of

As

result,

a

most business indicators will

average
as

a

ness

headed

their

find

REPORT

OF

CONDITION

OF

First National Bank
OF

SALT

LAKE

CITY

bigger, more prosper¬

a

country in which to continue

the

promotion of human freedom

and progress.

David Diamond

be

to

average,

David Diamond, partner

and

likely to be upset un¬ members of the American

m

! i ('■

RESOURCES

i

Cash and Due from Banks

(par value

("Average Maturity 7

>'/L>

$26,248^45,48
or

62,408,195.53

less)

Stock;

passed away, Jan. 8th«

NATIONAL BANK

AND

COMPANY

TRUST

OF

PATERSOH

CONDENSED

AS

5,

JANUARY

OF

1953

After purchase of assets and assumption of deposit liabilities
of the North Jersey National Bank,, Pompton Lakes. N., J.

carry

~

.?

-

u%

.

.

^

I

*

operating

$ 36,358,339.34

U. S. Government Bonds

55,546,082.30

Municipal and Other Securities..

30,704,065.78

Loans and Discounts

30,019,545.34

First Mortgages

20,492,299.49
34,109,414.42
270,000.00

Federal Reserve Bank Stock

31, 1952

in Dia¬

This general pat¬ mond, Turk & Co., New York Cityr

F.H.A. Mortgages

SALT LAKE CITY, UTAH
As of December

into t the

few years, they

ous

drastic change occurs in Exchange,

some

brought

in the past

By the

likely

are

1952

lower.

tern is not

less

will

have

we

world

1953, however, most busi¬

indicators

below

sters

high in

at least as

they have in 1952, prob¬

few percent higher.

of

end

prob¬

placed by the millions of young¬

level of 175.

guidance,

2,473,074.58
45,852.97

Banking Houses
Customers' Liability a/c Acceptances
Accrued Income Receivable....

681,935.82
158,820.48

Other Assets

Months)

$210,859,430.5*

TOTAL ASSETS.......

Municipal Tax Anticipation Obligations.,,.,,.2,032,838.05
Total

Liquid Assets

$90,689,079.06

.

72,600.00

Stocks

1.00

Banking House
Furniture

and

LIABILITIES

11,401,439.59

Loans and Discounts

Fixtures....L

1.00
3,212.07

Other Assets

$195,387,389.10

Deposits

2,508,911.33
45,852.97

Reserves, Taxes, etc

Acceptances Executed a/c Customers

3,750,000.00
5,250,000.00

Capital (150,000 shares -$25 Par)
$102,166,332.72

Total

Time

$92,048,065.51

Total

,

6,430,132.58

Deposits

Deposits

|

Capital Stock, Comnnm

1,250,000.00

Undivided Profits and Reserves

1,688,134.63

$98,478,198.09

•

3,917,277.12
$210,859,430.52

TOTAL LIABILITIES

F. Raymond Peterson

Benjamin P. Rial

Chairman ol the Board

President

NATIONAL BANK
3,688,134.63

Capital Investment

$102,166,332.72

Total




.

750,000.00

'

Surplus

Total

Surplus
Undivided Profits

LIABILITIES

Demand Deposits

Mr. Orval W.

Adams, Executive Vice President

AND

COMPANY

TRUST
OF

PATERSON

CUFTON —POMPTON LAKES
MEMBER

FEDERAL DEPOSIT INSURANCE CORPORATION

;

growing country, with our
severe.
To
the extent that the most rewarding progress still be¬
present boom is moderated in the fore us. The specter of economic !
next few months, the subsequent stagnation, which plagued us in
drop will be less rapid and less the 1930's, should by now have
been firmly laid.
drastic.
As we are re¬

185, and quite possibly

1949

Under

few

next

a

Cash and Due from Banks

U. S. Securities

the

bring, that we keep
in mind that we are

t

be

very

prob¬

lems

.

one

a

economic

of

or

ago,

be made adequate to

set

in

ably

Outlook

great reduction in

a

business!-.

in analysts recognize that the incom¬

declines

ventories to subnormal inventories

1953

activity.

a

than the outgoing one.
I£
outgoing administration has
below, and second, fought depression all through the
adjustment from excessive in¬ inflation, it is devoutly to be hoped

ment

ably

than

one

to

the

of

parts

cycle

the demand for and production of
durable goods, down to a replace¬

the total level of economic

crease

the cost of carrying

capacity

other

pessimistic pic¬
outlook, but I believe

ture of the

to

different

denly, providing the strong new
impetus required to sustain or in¬

national

excess

ex¬

increase
course, if we
even

the whole level of military

ments.

this

These fac¬

involved in major

fighting

have

pay

that have not

announced.

could offset reduction in

lized and reduced. The nation will
to

and important

programs,

product developments within

This has been

ments—first,

present

new

themselves

the

or

military picture.

ing

time,

likely to

are

believe

it is most important that

major

the

production

if

so

These

ent

year,

—first, the need for additional absence of such action, the normal
plant or equipment to handle bus¬ course of events will gradually
iness already in hand or clearly
absorb the safety margin, at the
in
prospect, or to reduce costs, same time
precipitating a much
and second, the ability
to pay, lower level of business
activity,
either from retained earnings or

more

to

the economy

the past have had two major ele¬

should end next year.

should become

workable

some

prudent to discount

isting programs, or
the total.
And, of

administra¬

new

tion will be to find

grounds,

adjust

forethought, the international situation

decline.

an

yet

early

cur¬

not
a

heavily the announced
programs
of
sustained
military
expenditures
beyond
late
1953.
These arguments would be further
strengthened if the Korean War

tors
of the

these

existing programs,

hard to

of

more

new

*

one

On

could

another,

excess

requirements will raise seri¬
problems of deterioration and

seems

be

margin
capacity

so

• For

Conversely, there

years, we

very

worked

have

we

the

industrial

It is clear that

Weakening Demand for

The

in

steadily-in¬

a

problem.

obsolescence.

follow this pro¬

develop.

the

heavy overhead cost of excessive

plant.

we

lost

have

safety

that

centives to cut prices in search of
the

Yet, if

cedure in the next few

and

reason

no

such

rent

have

near-record

calmness
seems

ing output will be

creasing

In the past, when we
temporarily overbuilt Capac¬
rate in 1953. With any significant ity, we have simply slowed^ down
reduction in the demand for their until the growth of population,
products, the capacity of these productivity and invention ab¬
industries
and companies will sorbed the excess or made it ob¬
ditions scheduled at

with
there

that all elements of

production much in

a

ap¬

cam¬

paign in Korea, and the sheer
problem of storage of the remain¬

ous

'"capacity to meet their 'present
peak of demand, with further ad¬

the

77

New

Jersey

Member Federol Dtposti /nrwronce

Corporolion

I

78

(358)

The Commercial and Financial Chronicle...

Continued

from

page

THOMAS

76

CHARLES E. OAKES
President, Pennsylvania Power &
Conditions

in

The
1 his

highly industrialized area of Penn¬
sylvania served by Pennsylvania Power & Light Com¬
pany point to a continuation and extension of the record
high level of business activity well through the first
naif
of
Ij>53
and
possibly some

Central

of

3%

Eastern

ally

promise of further vigorous and
substantial expansion in the use of

ance

000

industry, in the homes
of continued prosperity through¬

the

light

located

industrial concerns who
Eastern Pennsylvania
since

Central

in

the

,

T.

I.

Parkinson

operations.

business

the

moving

from

x

past two

decades.

For the. life

levels.

This

Indeed

that

trend is

already

,

-

over

one-third of these

ment

this trend

continuing,

an

effective cushion against sub-,
being provided..

stantial economic change is

The expressed belief at this time

authoritative
tshow.;some
the

sources

is* that

on

the part of many

un¬

to

following
(1)

tapering off will - be greatly minimized
Company's business. It is generally accepted that
durable goods industries are most sensitive and sub¬

durable

auate

gory it

sary

the sensitive durable

goods cate¬

does not

seem

likely that industrial

revenues

the

Company in the coming

rial

change from present levels.

year

to

that

earnings
are

not

and

which

increased

ing

of

sonnel,

growth

of

which

adequate

bank

ices

post¬

(3)

war period.
Mounting sales of electric home appliances
throughout the area served by the Company offer im¬
pressive assurance for a sustained growth in revenues.

H.

Company's aggressive sales efforts, closely coordin¬
local electric merchandisers and
others, have
resulted in sales of many domestic
appliances well ahead
of national figures. Typical of this
trend, dealers in the
Company's service area for the first three quarters of
1952 {report electric range sales about 13%
higher than
the
1951
period, while nationally down about 29%.

Similarly, electric water heaters sold show
of

over

20% compared with

a

As might be expected with this favorable
age use of

a

ha* been
no^-end

a more

aver¬

rapid rate of growth than the country

its

of growth and progress.

one

to

new

uses

production.

opened

up.

electric industry

There

for electric power and

New frontiers

are

ft

seems

to be

to advances

continually being

With expectation that the serious interna¬

and the hope

social

is

the

is best for
and

can

be

constructively resolved, there is
some

optimism

that it will mark the beginning of
and

economic

the nation.




progress

for

a

new

the people

of

to

to

bank

opinion

Tax

Under

have

terest

of

rates.

portant
fense.

a

litt'e

way

of

arm

peacetime

see

We

economy.

have

bankers

guiding

should

We
was

them

in

1952

us.

It

and

1952

will

be

but with

Now
will

for

take

'

1953—:as

over

the

above

stated,

so.

Above

are

having

believe

management of

our

was

an.

all-time recoFd sales year

"hard-sell" "year,

every

men
econ-

will

to

come

for

the

the

that

company

with-the

most-product for the least
money—provided it*does an all-out

•

of'-areas where

"/ing efforts

cam 'he

our

are a num-

merchandis-

intensified.

payment selling is really just getting
underway.
It offers a tremendous

potential.

Also

low-priced products

»

'

"will enable

• ■

•

•.

mBmmm
c.

H.

Percy

'

1

" -''

shots,'b'tft they
prospects

own

"v

us

to

■

tions-

more

■

more

families

t

are

all

becoming

more

and

"photography conscious."

We
feei business in general will be
good
:be':.a few soft

ShopM;|?Ott^ey^dp Jnto
are

get

"interested • in movie makingv Amateurs, industry, schools, and institu-

A JHBf

hxcellehtt^

.

1

major slides/Our
.

-

J

The question has been asked—"What about reductions
in
government spending and lower taxes?
Will this

deflationary spiral' to Start?" I would say "no"
changes are undertaken gradually. It is falla¬
cious to assume that this country can't be pros»erous
Without huge government spending.'. If
spending is cut,

cause

if

a

these

and taxes
money

financial

adequate

We Tknow

/.^merchandising job. There

imm

,

with

ever-increasing- competition

.

^1

in

y

sound

a

••••success
.

•

-on

known way to bring about this
desirable result; Banks,
generally, will, I believe, report good
earnings by comnarison for 1952; however in
the writer's humble
opin¬
ion. the overall bank
earning picture leaves^much to
be desired.

/

:

Howell Company

croilar.

perhaps

in

de¬

expect business to be better for us'iri 1953 than it

supplies,

of "our "financial*

assist

national

PERCY

President, Bell

.

the

economy. We have been
since that time, with

the

H.

which

our

.

will

and

commerce

~

C.

excess*

dip in 1938; but it will not always be
everything else, we need sound money. We
a
change in administrations, and men who
money

favor unions
and
who
receive proper remuneration

'

.'

-

In the past'couple of
years,
considerable increase in Short-term in- '
This has assisted
banks, but has been

ever

as¬

system; we may ex¬
evemgredtcr gains,in the yeaTS.-immediately

a

street"

to

Under-that same competitive

pect to

for

salaries, dividends, reserves and adequate
capital.
We, who had the experience of
passing through the
banking depression of the early 1930's, know • the ■ im^
"one

and

or make-work
have burdened the railroads.

as

profit taxes.
Bankers might do well to devote their
energies towards
better earnings, better salaries for
their personnel, and
concentrate on the division of their
earning dollar into"

a

of .interests

■

of private enterprise, the airline in-:
dustry has in its first 26 years become an extremely im¬

independent -banking

and

$4,0()0,UU0

spur

shares look*unattractive."

largely offset by high income

up to

must; resist feather-bedding

the

our

seen

developments, with

who

us

their members

charges must be realistic.
we

the

per¬

especially

Profit

that

conflicts

-

Those

see

practices such

to'match.

taxes,

Excess

in¬

be

best-possible over-all transportation prouuet
• %
'•%•>/-./
other industries, the airlines have their
labor

.high wages paid in

unable

Heavy

(

unfair

writer's

be

to avoid

so; as

public;

country, and in order to have a .healthy..
vigorous banking system, interest rates and service

sound

good reason to look forward to 1953 with

of

Parshall

portance of banking to

tional situation

era

picture,

whole.

Speaking broadly, the history of the

in

local gain

electricity in home and farm shows the Com¬

with

pany
as

a

national increase of 12%.

P.

made

The

ated with

wish

ade-

appear

the

its

the

the

Like

—

commercial

in

will

in ground operations to match that in the

progress

sure

industry generally,' especially de¬
fense work', which banks
apparently

have doubled

these

made to determine how' policies and
regulations cover¬
ing all the various forms of transportation can be coor¬

.

significant factors also point to a satisfactory
picture for the Company in 1953. Residential, farm and
revenues

the future has

immediately; there is the problem of achiev¬

is

and kdb*the

-

.

,

capital
deposits

in

A. Patterson

New mechanized methods and
techniques must be
developed to attain this objective.
/ *,.■
Government regulation As- another matter which re¬
quires close consideration. Unselfish.studies should be-

-

partly due to our
young, men entering the .armed serv-

would show any mate¬

Other

service

requirements. '.
with its opportunities,

More

ahead.;

Lack

VV.

and

air.

demands.

(2)

1953

•

production models of such planes to cost
each.

salaries, good
provide the neces¬

and

in

problems. Not the least of
tremendous expense involved in jet

good

pay

reserves

funds

non¬

in

revenues

earnings

dividends

With only about 40% of the Company's

group.

industrial

stable

is

delivered

nevertheless
bank

pre-

evitable

reasons:

Inadequate

there

our

problems.

economic

more

meet

haye taken place in the last couple of years. To me,
not a healthy sign; and is due, in the
main, to the

that

that

.

Along

•it is

in the
the

be

for

slackening of activities in certain areas of
As. far as we can see, the effect of any

ject to wider swings than those in the

to

again witnessing some changes in our bank¬
ing economy! I am speaking of the bank mergers that

the latter part of 1953 may

fact

the industry and the public. Most of us do
expect to see jetliners in any great use before 1958
1960, but our engineers and operations people -are
diligently studying types of turbine planes most like.y

are

economy.

such

air shipping is increasing
So
are
the - fleets
ation's air carriers, as evi¬

by the

dinated
We

all

or

PARSHALL

President, Commonwealth Bank,, Detroit, Mich.

schedule

it holds for

new

industries, some 236 concerns, with proportionate job
opportunities and accompanying payrolls, have picked
location^ in anthracite mining communities. And with

into

not

that the cost of the family head's
life insurance coverage will be reduced. His refund of
premiums, the so-called "dividends" of his policy, will
be increased as annual earnings of life

Pr

con¬

Looking beyond those, years, the airlines .are prepar¬
ing for the jet age and the tremendous promises which

means

HOWARD

for

year.

1954.

-

,

The record shows

is

srn'ly are commitments for approxi¬
mately $'250,000,000 of new equip¬

.

district.

i

denced

insurance

normal

outlook

All in all, the picture

rapidly

by

the

of

The

policyowner, the good news is
that interest rates,"
artificially controlled in the past by
the Federal
Government, will be permitted to rise to
derway.

The

travel and

commitments get a large mdasure of comfort
that -orthodox ideas of finance

the

more

—

PATTERSON

the nation/ the airlines are
a.postion to accommodate a con¬

year

bringing work to some 55,000 people and annual payt-i—
rolls of $175 million, not to mention appreciable reve¬
companies mount:
Even more important for life
nues to the Company.
' '
"
insurance policyholders,
~
**
and every other citizens as
wejl, the depreciation of .the
For" some time the people of the anthracite mining
'purchasing value of the dollar will be halted and pos¬
communities served by the Company have recognized
sibly
turned
about.
That
would
mean that life insurance
the need for
diversification
and
have been working
would be a better buy than it has been in recent
years.
deteimmedly to strengthen and improve t
r
y
The present purchase of insurance dollars
should be not
by attracting
acting new industries. How well they are succeedonly the begt ^dgfe against any further inflation, but
ing is shown by the proportion of the aforemention d
a ^
.
prof^able 'investment in the event of deflation
new concerns who have chosen to settle in the anthracite
nr-

.

tinued
strong
upsurge
of
traffic.
Obviously, public acceptance of air

knowledge
will prevail.

1945,

our

contingency

across

in

inflationary trend
immediately halted and the volume of money
remain high.
However, those of us who deal in

long-term

have

A.

;

;

been

conduct

any

turn comes.

have

we
so

is one of sound economic
growth.
With
new
and
efficient
aircraft

will not be

a

this

The .nation's'scheduled airlines have
every right to r
fee'ing<? of gratification over their combined 1952 record
and optimism over future
prospects as they enter the *
new year.
In the year just closed, the
industry set recor
s
n
virtually all phases of its
tinued gains.

by

of World War II.

business

will

of the 681

insurance

usual

acterized

The forceful impact of these activities may be judged
in

life

reassuring fact about the period ahead is that
community can look forward to long-puil
planning instead of the short-haul tinkering that char¬

stability is coming from Company directed
efforts, coordinated with the local business and civic
groups in aggressive promotion of the natural advantages
of its service area.
Such cooperative efforts are a vital

1

President, United Air Lines, Inc.

the-

The

the

"Further

and

for

of

community Ihere is, naturally, more
speculation about what the year anead holds
of economic activity. A new hand has
just taken over the guidance of the ship of state and
any
signs denoting fair or foul weather sailing are
being
intently examined. Right now the signs indicate a period
of high activity for the next twelve months.

time in the general level of business.

stability

people

demand

enjoyed

In

multi-industry area with a record of longterm stability,
and, as a consequence, the Company's
revenues from industry have not been subject to severe
declines or spectacular rises.
Instead, the Company's
industrial revenues, stimulated to an increasing degree
by a large diversified group of new concerns which
have only, recently come into the area, have been dis¬
tinguished by a healthy growth unusually free from the
influence of severe surges which occur from time to

economic

the

in store in the way

a

to

W.

in the United States will
approach the $300,000,000,mark—double the insurance
protection

than

contribution
in promoting
higher standard of living.

and

policyholders at the end

Central Eastern Pennsylvania has been noted for many

end

en

that might arise when the

expan¬

certainly shows no signs
diminishing. Indeed some in the
industry believe that by this new
year's end, ownership of life insur¬

out the area served.

.years, as

The

sales

Defense

"one way street" that
traveling and it behooves us bankers to
bus ness that we will be able to
meet

protection

the

the farms and

on

greater

Employ- ~
and I

peak,

surely

be

of

electric power by commerce and
and

family

beneficiaries.

for

need

American

these recordbreaking
additions
and
improve¬
ments to the Company's property is
Charles E. Oakes

the average for the

all-time

an

-

The

other electric
two-year period

and

Behind

past.

year's

interest- rates;

at

good year fo~ banking and
industry .generally;
however we must all remember that there will

is underscored by the fact that
in the Thirties, premiums
ranged be¬
tween 5 and 8% of national income.

tion in 1953 and 1954 more new gen¬

the

about

is

other

actu¬

sion

putting into opera¬

facilities than in any

which
one

road

open

Company history.

capacity

on

income

only

assures

breadwinner's

1953, trie largest of any year in

in

year.

national

income

Planned expendituies are
run close to $40 million

expected to

erating

of

higher

area

production in our area has not
quite reached its peak and defense
spending will prob¬
ably not cecline until 1954. Nation-wide employment
is at an al-tiire
high, unemployment estimated to be
lc£3 than 1,500,000
employable people. This means that
wages and payrolls are both at an all-time
peak, both
in
total payrolls a~d what these
payrolls will buy.
Thercfire, we believe that 1953 will prove to be an¬

1953, the life companies face
a year bright with promise.
Current
premium payments total only aoouc

Pennsylvania is its huge construction

for

one

Detroit

country, generally, with de¬
accounting for about 22% of our total

most

a

for

augurs

the

prcduciitn.

industry, the business bedrock of

1952 in

in

believe this is true for the
fense production

For

future

call

insurance

nation, ended

any

Strong evidence of the confidence
which tne Company views the

Plans

ment

flourishing condition.
country's 88,000,000 policyholders purchased
more than
$22,700,000,000 of new insurance during the
past 12 months, a record amount for

with

in

life

This

omy.

The

months beyond.

program.

PARKINSON

of the United States

Light Company

the

economic

I.

President, The Equitable Life Assurance Society

Thursday, January 22. 1953

are

for goods and

in

cut] people will have, more money to spend

services—assuming there is a tanering off
military requirements. This is a sound kind of ecor>-

»

Number 5188

Volume 177

hesitation

(359)

about

spending cut, taxes lowered, or does it fear this will

raising prices and emphasis put on
streamlined production.
These are the patterns that one foresees so far as the
well
managed responsible companies are concerned.

prick the bubble?" I think most businessmen feel that
the adjustment will have to be carefully made.
Any

outbreak when poor reality appraisal unnecessarily sky¬

sudden, drastic cuts in appropriations that are not ac¬

rocketed

companied, or preferably preceded by tax reductions of
significant amounts, could cause a temporary set-back.
The tax cuts should come first to allow for a "beefing

whether general

up" of consumer purchasing power—and a re-evaluation

that inventories will be carefully

hopeiully downward, of corporate pricing policies based
on the
ability to retain more aftertax earnings. I feel

the

based

omy,

start

well

question—"Does

probing

'

r

to

business want

is healthy.

However,

the

second

to

ence

That something

vision.

normal

sight;

determination

a

the

his

years,

is

refer¬
resolution,

we

"economic

time

to

discard

to

comment

In 1953

'55.

and

'54

of

|

Insofar

bused

my

on

units

as

which

altered
But

Ka.pu

of them:

age

t.

*

cfSu.u

With
of

coming

groups

with

than

stimulate

to

are

in

there

will

rises

on

year

fluctuations

the

will

economic

be

Detroit

of

area.

be

production

will

during

been formulated for

and

work

more,

At

Elects Officers

a

Maryland.,
meeting of this Committee

the following officers were

held,

elected:

Chairman:
Charles P.- Lukens,
WASHINGTON,
D.
C. — The
members of District No. 11 of the Jr., Robinson & Lukens, Washing¬
National Association of Securities ton, D. C.
Vice-Chairman;
Glenn E. An¬
Dealers, Inc., recently elected:

on

Mr.

•

HALSTED

STATEMENT

Mr.

takes

Lukens

office

L.

63rd STREET

AT

Cash

if

E. Anderson

i'

Marburg,
Alex.
Baltimore, Md.;
Horner, Scott, Horner &

No.

74,311,935.34

193,835.64

Frank C.

Rathje

Sigurd R. Anderson
Fred J. Claussen

Harry A. Fischer

the Board of Gov¬

Charles W. Ifeidel

of this Association by Har¬

Morris Z. Holland

Auchincloss, Par¬
& Redpath, Washington, D. C.

Henry F. Jaeger

Kulp

Arthur A. Lawder, Jr.

Dean Witter Co. Will

Conventional

»

....
.

Wm. II. McDonnell

or

James McHugh

Admit New Partners

Corp., Durham, No. Caro.; Ben S.
Willis, Alex. Brown & Sons, Win¬
ston-Salem, No. Caro.; W. Erskine

the

Buford, W. E. Buford & Co., Char¬
lottesville,-Va.; Edward J. Arm¬

limited partner in

ited

partnership
same

general

date

on

Feb.

Shirldy

partner,

will

1st.

On

Operating Equipment
Stock in Federal Reserve Bank
Accrued Interest

on

.....

U.S. Government Securities

Customers' Liability under

Letters of Credit

.

.

2,366.43

Other Resources

$118,219,419.84

Total,,*

LIABILITIES

:

Deposits:

James F. McManus, Jr.

$

John Mueller
'

Thx and Loan Account
Tax, etc., Deposits
Veterans Adm. Tax, etc., Deposits
.
All Other Deposits
.
.
.
.
.
U. S. Treasury

Federal Housing Adm.

become

the firm.

a

.
.

.

.

.

2,353,638.01
1,944,182.77
281,963.35
102,687.16
109,520,226.28

__

Edward J. Weber
Reserve for

Member Federal Reserve

System
Member Federal
Insurance

Deposit
Corporation

$114,202,697.57
570,906.65,

Taxes, Interest and Insurance

1,000,000.00
1,000,000.00
1,129,695.86

Capital
Surplus
Undivided Profits

Contingent Reserves

.

.

.

.

.

.

.

246,119.76

3,375,815.62
Liability under Letters of Credit
Total

Houghton,

17,123,363.89
945,640.94
149,555.23
60,000.00
458,338.61
70,000.00

Guaranteed by a Federal Agency)
Banking Premises
...

Public Funds

Glenn E.

Kirchofer & Arnold
Associates, Inc., Raleigh, No. Caro.
SAN FRANCISCO, Calif.—Dean
and W. Olin Nisbet, Jr., Interstate
Witter & Co., 45 Montgomery St..
Securities
Corp., Charlotte,
No. members of the New York and
Caro., to the District Committee, San Francisco Stock Exchanges,
representing the securities indus¬ will admit Alfred E. Marsella and
try in this area for a term of three Charles E.
Marsella
to
general
years to fill the vacancies ^created
partnership, and R. Stanley Dollar
by the expiration of the terms of:,
William D. Croom, First Securities and William Cavalier, Jr. to lim¬

Anderson,

9,366.66
2,702,968.40
918,753.88

Participation Loans
*Federal Housing Administration Mortgage Loans
*G. I. Mortgage Loans
(*Insured

99,410,154.74

7,848,342.53
1,661,096.22
3,982,836.20

.

.

Land and Building

are

old C. Patterson,
ker

—

•

.

.

.

.

*R.F. C.

comprises
Columbia,
and

on

$ 24,940,383.76

....

$

11

Grainger




Hand and in Other Banks

Municipal and Other Bonds
Loans and Discounts

Chester W.

Sons,

on

U.S. Government Securities

Industrial and Commercial Real Estate Loans

ernors

Mason, Lynchburg, Va.;

page

CONDITION

FINANCIAL

OF

Real Estate Loans

represented

Edwin B.

on

CHICAGO, ILL.

•

Committee.

The members-of this District

&

,

Continued

Street, N. W., Washington, D. C.,
was
elected
Secretary
of
the

the
District
of
the
States of Maryland, Virginia, West
Virginia and North Carolina.

F.

reversed.

first

RESOURCES

as

succeeding Edward J.
Stein Bros. & Boyce.
Victor
Seested,
1625
K

District

Brown

acutely

DECEMBER 31, 1952

Chairman,

G.

are

we

Chicago City Bank and Trust Company

Armstrong,

Jr.

the wane, or even

extensively with the region's farmers

Kirchofer & Arnold As¬
sociates, Inc., Raleigh, No. Caro.

Luketts,

Northwest

as

development.
It is expected that under the new Interior Secretary,
Bonneville Power Administration will be run in a less

coopera¬

derson,

P.

Pacific

living

strong, Stein Bros. & Boyce, Balti¬

NASD District II

C.

the

McKay has an intimate knowledge of the
region, its problems and its resources, which will be of
real importance in establishing a sound basis for regional

Michigan State
College School of Agriculture to establish experimental
farms

in

and governor,

tive action between the railroad and the

be

has been taking an increasingly greater
corresponding increase in Federal control.

utilities

.Oregonian and successful businessman who has grown
in politics as mayor of his city of Salem, state legislator,

small industries to locate
the past year and
undoubtedly • have an influence

Plans have

i

good news was that Douglas McKay, Gov¬
ernor of Oregon until his resignation in December, will
become the new Secretary of the Interior.
A native

to do some¬

encourage
so

Polhemus

have for the past
13 years with Federal domination of the hydro-electric
resources
of the region.
And we have been under¬
standably pleased with events of the past few,weeks
which have indicated that Federal encroachment may

a level of business ac¬
Mackinac Railway Company

did

H.

lames

greatest of the national problems is that
development, a field in which the Federal

conscious of this trend,

The

Several

men

the

with

Electric

Mackinac is attempting

being made to
the

of

resource

part,

prolonged plunge.

and

ijr,

before him, the
need these

scene.

government

there

but

will

and

One

evidenced,

scale,

peace

help

tional

all

opment also.

poouTation

to bring its purchasing
financial-status. In the effort

buying

Normal

and

to gather good men
With the primary prob¬

world

President

short-

during 1953.
Attempts are being made to foster agricultural devel¬

advertising. Special sales atten¬

domestic

of

him solve the myriad of
long-range problems on
the national as well as the interna¬

to

is

that.

their

hourly wages

civilian

conviction

thing about the economy of the region which it serves.
Through its industrial development department, efforts

and design improvements wnicu nave

habits in line with its new

the

"f^uentiy, this should result in

readying themselves will be presented to tPe pub¬
lic with force and impact. Gaps between standard prod¬
ucts
and consumer acceptance
will be narrowed by

high

guide the destinies

1953,

treatment in the
developing and ex¬

ability

around him.
lem

comparable to that attained in 1952, and it may be better

the outlines of the

toward the large buying

of

onset

op¬

panding the nation's economy.
The quality of appointees named
bears out General Eisenhower's re¬

PINKERTON, JR.

tivity for the Detroit and

in which all resources would be put
expand civilian markets. New

tion will be directed

the

biased

effort of

common

indications, the general economy of the
northeastern Michigan region will be on the prosperity
bandwagon along with the rest of the country. Con-

insure and

.intensive promotion and

at

1933.

From

been

bv

in

dips

The

research products

created

nation

should r.ot be any

year.

to

less

pect

to the industry

built into them.

Administration set to

new

a

the

occur

in terms of decades rather than the
national election, I take the liber'y of

It cobld be a year

to; work

power

and

posing, business will be able to ex¬

will be an economically
favorable one. Contrary to the pessimistic prognastications of many journalists and business publications, I do
not believe that any clear-cut business recessions will

to be firmly

or

staying

after two dec¬

waiting, worrying,

of

ades

Sun Chemical

firmly held that the coming

years

proiecting how I would like to see

indicates that

sitions

new

growing-

The

years.

General Eisenhower for top staff po¬

rather

needs

four

next

new

the new
buying habits, etc.
at least the first two-thirds of 1953 it is agreed
units,

local

the

list of business executives named by

puted

politician, thinks
next

future

and

current

on

1953, will be a peculiarly eventful one in
who for 20 years have been the

businessmen,

corporation in the world for at least

Detroit and Mackinac Railway Company

due to the slack
with its cu.back in new
distribution of income witn its

population

in depression

seem

con¬

is above

President and General Manager,

underpinned, and granting this
fact the
American industry together wibi a
riend.y
Administration has a year to show what it can do to
insure the future.
Since the businessman, unlike the
would

we

;

whipping boys of the Federal Administration, will now
share the responsibility of helping to run the biggest

conservative, is what our situation
look to Washington for quick thinking

have market

ex¬

falling curve of de¬
fense contracts, the peak* then fall-off in capital expendi¬
ture, the declining export picture in long view, the

family

and

The year of
that

is

or

CHARLES A.

The rising then

birthrate

liberal

terms

It

+

President, Portland General Electric Company

factors is unde¬

niable and we are all aware

distortion, in

conservatives.

mere

readying several products

are

been such unity

solid

JAMES H. POLHEMUS

20

past

Corporation is concerned, its
Graphic Arts divisions must surely benefit from any in¬
crease in
advertising budgets, while its other chemical

except

That these predictions

forecasts.

are

in

Seldom

perience has there

the

Over

than pending elections.

side by side
for

to

shopworn

the

cooperation, based

business year, and they stand
in hoisting storm signals

good

advisors.

and

flexible, and flexibility not rigid theory, whether it

needs.

extraordinary

the

on

of 1953.
Here
American businessman,

the

capable business administrator

calls itself liberal

agreement among experts. They tell
us .in
unison, that 1953 will be a

•

The

strong,

business outlook

opportunities

on

royalists"

which

general

products, such as plaster and plasterboard, ce¬
ment, shale and gravel, should continue good. Limestone
for steel and sugar processing is not expected to drop to
any great degree and a possibility exists that pulpwood
production will show an increase.

gypsum

com¬

have heard the businessman reviled by the
liberals.
We have been called everything

from

all

of

falls

administrators

servative.

durable
foundation
upon
'54, '55 and the American.
future can firmly ground itself.
This is not the place to discuss in
detail the many published forecasts

the

of

burden

self-styled

extra is without

plus quantity
in 1953 a

build

to

in the U. S.
something more than

with

Especially, one hopes
watched so that when

Washington will have great bearing

made

use

This program should get

in 1953.

President Eisenhower has reached into business ranks

as

Anyone associated with business activity
1953

Korean

the normal fall-off won't be

is passed,

again, the
for

to

prosperity could bring.

peak

What happens in

'

President, Sun Chemical Corporation

forward

the

following

days

pounded by topheavy inventories.

RALPH C. PERSONS

look

the

production.

crop

79

Although an optimistic outlook is held for 1953, it is
hardly probable that it will threaten the record of 1951.
However, the continuance of rather intensive activity
in the building trade industry will virtually assure a
good year for the Detroit and Mackinac Railway Com¬
pany since the production of the area is comprised fori.*r7
the most part of products of mines used in home and
commercial construction.
Output of bulk gypsum and

inventories

months of

on

must

recalls

one

improve

under way

and
prices, and one wonders
business psychology will find the sta¬
bility to resist the laxness and optimism that the coming

i

,

to

economical

ehain reaction of business upward.

this kind of "deflation"

that

This could

goods for fewer dollars.

on more

a

Another
see

•

The Commercial and Financial Chronicle

...

70,000.00

$118,219,419.84

80

m

(360)

The Commercial and Financial Chronicle

Continued

from

page

-

.

•'

v

12

years. And we will grow to
the same time, Westinghouse

At

propulsion.

In these

of scientific development the

areas

progress of the next decade may make the most optimis¬
tic predictions of today appear quite conservative.

Pacific Northwest.

WILLIAM H. PUTNAM

The element of discrimination has aggravated the ef¬
fect of regional power deficiency, especially insofar as
BPA has granted

Partner, Putnam & Co., Hartford, Conn.

long-term contracts to the aluminum

There

slid electro-chemical industries in advance of the needs

great bulk of power qsers.
It is hoped that a
jpolicy will be established whereby there will be no sales
of firm power to heavy industry unless there is an
assured surplus of power available for the customers of
all operating utilities, whether publicly or privately
owned. Then, if these industries, purchasing power on
an interruptible basis, must continue to operate in the
interests of national defense, they would pay the costs
of abnormal steam operation and remove this unrea¬
sonable burden from the shoulders of private utility

and

as

cities

many

of money if
and keep in

expect

industry, finding itself in sharp competition

companies.
Public

tion

of peacetime goods.

money.

monies

mand

plants and improved facilities

to $245,000,000 since
By 1955, the investment will
total some $450,000,000 and the in¬
crease in productive capacity will be
125%.
The 25 new plants we have
built, are building, or have acquired

in

15 states since the beginning of
1946, and improved facilities at older
plants, now are making it possible
for Westinghouse to accept important

production tasks for the Atomic En¬
ergy
Commission and the armed
•services without seriously interfering
with commitments to industry and

without shutting off the flow of re¬

automatic

consumer

washers

and

items,

Our

growing productive capacity made possible a
srecord-breaking output of more than $1,400,000,000
worth of Westinghouse goods during 1952.
from

come

history,

record that was
Established in spite of many harassing problems. The
wiost difficult were:
(1) rising costs of materials and
labor Without compensating increases in
prices of our
products; (2) shortages of such critical materials as
.steel, copper and aluminum; and (3) higher taxes. These

reason

to believe that the

felood' of

important

bearing

question.

meet

think it

I

Our order

backlogs are
throughout the nation indicates also a corre.spondingly high level of consumer purchasing power.
-In our business, that
generally means a lively demand for
electrical appliances, TV and radio
receivers, lamps and
the other things we make for the
home.
Barring an unexpected turn of events in the inter¬
national situation, industry's 1953 course
should be one
«f continued high
production. And while the
consumer

wQI not spend
recklessly, and even may show greater
interest in savings, he may nonetheless
buy such products
as home appliances at the
highest rate in

economists'have

been

predicting a fall-off in
business by the end of 1953 or
early 1954. Whatever the
future may hold for 1954 and
1955,* we do not expect
«nr business to be affected
unfavorably. in .1953.
From the long-range
viewpoint, we believe the busi¬
ness outlook for
Westinghouse is most favorable. The
.

demand for and

use

of electric power will
double in the




required

will

be

meet

that the

the

of

,

REYNOLDS, JR.

There will be plenty of aluminum for
all who want it
before the middle of 1953, in my
opinion, unless there is
an extension of
hostilities. With the industry continuing
to expand its
capacity at a record pace, the supply situa¬
tion in 1953 should be much easier
than at any
War

time since the Korean

began.

Although the 1952 production,
timated

to

be

close

to

1.9

es¬

billion

pounds, sets a new all-time peak and
is 11% greater than last
year's out¬
put, it does not fully reflect the ex¬
pansion already completed. The 1952
output would have been greater ex¬
cept

for

the

substantial

production

market.

ages in the Northwest and TVA areas

on

is

big year, perhaps the biggest in

I

President, Reynolds Metals Company

and the

delay in

new plant construc¬
by the steel strike.
The big surge in actual production
is coming in 1953 and
1954, with an

tion caused

R. S.

Reynolds, Jr.

output of 2.5 billion pounds expected
in

1953

about

and

3.0

billion

in

1954.

When

all

of the

planned expansion is completed, in 1954, this country's
capacity will be about 3.5 billion pounds—a 127% jump
since Korea

and

almost ten

Reynolds Metals'
a

.

RICHARD S.

an

or the in¬
inclined to think

am

new

for future business.

losses being suffered by the industry
because of the severe power short¬

borrowing has

level

I

quantities are
their need, as well as commercial
regular customers. I believe, however,
gas turbine field holds great potentialities

to

1952

times

much

as

output sets

in

as

1939.

record

new

a

for

the company.

Estimated at 552 million pounds, the com¬
pany's 1952 output will be over 13% higher than in 1951

burden everybody has to
work, and work hard. Produc¬
tion will increase, and with some tax
relief, the incen¬
tive motive will be
greatly emphasized.

and almost 3V2 times as much as its
peak World War II
output. When the company's expansion program is com¬
pleted in 1953, its annual producing capacity will be

history.

There

is

question

no

but

with

our

830 million

CLARENCE REESE

conditions

generally

should

be

good

as

or

better in 1953 than in the year just ended.
My optimism
is based upon the expectation that the new Administra¬
tion will

various government

ease

limited

output

civilian

of

products,

that the climate for business

and

result

a

controls which have

of

selection

President

cf

outstanding men for
top administrative posts

Cabinet and

will be more favorable than for
eral

as

Eisenhower's

sev¬

years.

My

confidence

confirmed

in

the

future

tinental's customer list includes such

large

a

concerns

Reese

number
in

of

the

more

the

few

achieved the status of

unfilled

volume in its entire
the

coming

on

Oct.

31,

year

history.

are

E.

ment,

and the

of

orders

look

Forces,
spread

the

farm

implement

the

as

in

the

also has been

aircraft

working

engines for introduction
In

addition

to

and
on
as

pushing

marine

fields.

and

the development of two V-8
soon as

its

conditions permit.

several

lines of

engines, Continental Motors is expanding
and

development

meet many
a

year

ago,

program

to include turbines that will

commercial needs in the future.

■-

*•

I

More than

the company acquired the exclusive

facturing rights in the United States to
gas turbine

standard

its research

a

manu¬

family of eight

Engines developed by the Societe Turbomeca,
& a

\

,.v.-

-s-

.

i

;

^ 3

* "**v

the

equip¬
large volume

a

months

to

Our

come

backlog

large orders for the Armed
the delivery of which are
evenly throughout 1953.

received

profession.
new

there is every indication to be¬
our sales of this new
item
continue at a v£iy

satisfactory

throughout 1953.

Sales' to

and

Continental

engaged

lieve that

E.

J.

Ries

sented

industrial equipment fields, and in buses and
trucks, as
well

ours

by
the
The introduction
piece of equipment has
resulted in a large number of orders
of this

volume

for

as

favorable.

enthusiastically

dental

broader market for both liquid-cooled

engines

satisfactory

very

We have recently
placed a new
major item of dental equipment on
the
market, which has been very

ment of

even

in

very

will

an

■

includes

Current plans call for renewed emphasis on the
develop¬

air-cooled

RIES

prospects for obtaining

recently announced stretch-out of military production.

and

Aluminum's

in the manufacture and sale of dental and medical

1952 ended its

notwithstanding

J.

We are approaching 1953 with a
backlog of orders for a business such

Continental's prospects for

excellent,

major basic metal.

President, Ritter Company, Inc.

engine builder with the greatest sales

an

a

pro¬

orders

Continental Motors Corp.
50th year as

was

ducing and fabricating facilities. With aluminum becom¬
ing more readily available, many new uses are develop¬
ing and the industry will be able to embark once again
on an aggressive selling and market
development cam¬
paign.

goods
industries that
its
normally affords an accurate
picture of the forward thinking of the top management
of such companies.
Such unfilled orders stand at an
extremely high level now.
of

it

new prominence and
importance is sharply defined by
the decision during 1952 of two leaders in the nonferrous
metals field to invest over $200,000,000 in aluminum

durable

bank

as

gain recognition by American industry. In
years
since World War II, aluminum has

semi-

and

great

aluminum continue to grow rapidly
plentiful and its usefulness and rela¬

tive low cost

manufacturing

durable

as

is

ment, and in the transportation in¬
dustry^,to which the company is a
leading supplier of engines. Con¬

J.

for

by

Continental
Motors'
wide contacts among manufacturers
of agricultural and industrial
equip¬

C.

it becomes

than 5 times

more

World War II.

The markets
as

Business

pounds,

at the close of

President, Continental Motors Corporation

history.

Some

turbine engines.
Continental Motors will continue to build
military en¬
gines for the Armed Services in whatever

tax

our

fee good.

duction

ness

competition.

purposes.

plants busy during 1953.
large. The high level of pro¬

tre¬

a

give the benefit to industry

to

military

product

to

up

Either industry gets the advantage

the availability

product and defense

price

vested funds get the
advantage.
the wise course would be to

industrial

The outlook for business
generally in 1953 appears to
The defense program and the normal needs
of
industry seem certain to keep Westinghouse industrial

adds

already put to it to meet competition from Europe, or
whether the authorities decide to
keep money rates low
and deprive investment
funds, pension funds, savings
funds, foundation, etc., of extra income, is the great

be made to halt the rise

,

the

on

national Ad¬

For example, some types of steel such as
feeavy plate, will be scarce throughout the year. But
thanks to the remarkable accomplishments of
the steel
industry, many categories of steel are expected to be
an good
supply by mid-1953. Aluminum should be read¬
ily available throughout the year although
copper will
remain tight.

this

year.

Whether the powers that be decide to raise the rate
securities and penalize industry, which

dampening effect on business
of risk capital, the lifeprogress.
For another, a vigorous
effort to halt the inflationary
spiral may. eventually end
the "squeeze" in which
industry has found itself wedged
t>etween rising costs and controlled
prices. Shortage of critical materials will be felt generally
.as long as there is
large-scale production for
initiative and

All

money.

ministration will meet such problems with a
refreshing
realism and directness of
approach. Despite the Korean
iwar, efforts undoubtedly will
©f taxes which have had a

they must have capacity, and that

government

a

new

in

The rate to be paid for government

three problems, in varying degrees, will
carry over into
1953 when we have hopes that
they may be successfully
»iet.
There is

growth

large, they will not be adequate to
requirements. There will be a large de¬

for railroad

plants

our

already supplied by Continental, making available for
specialized applications, not only greater light¬
and compactness, but various
performance charac¬
teristics peculiar to
turbine-type power plants.
The turbine project is
being handled by Continental
Motors' subsidiary, the Continental Aviation
and Engi¬
neering Corp., but the Continental Motors
engineering
department is also engaged in
development work on the

numerous

<

1

This is the greatest volume to
£n the Company's 66-year

the

mendously active business

amounted

1946.

other

a far broader and more diversified
line of tur¬
bines than has been available in the United
States here¬
tofore. They will
supplement conventional engine types

enterprising

are

supply these

Westinghouse, this investment

frigerators,

with

pace

*

Owilym A. Price

most

Railroads, to compete with highway freight and pas¬
traffic, must have new equipment—cars made of
new metals, lighter and
stronger, with ball bearings and
improved motive power. Although the annual deprecia¬

push large expansion programs, it would be
impossible today to build for defense at the current pace

has

agreement, climax¬
ing months of technical work, testing and
negotiation,

provides

.

senger

far back

&s 1946 to

new

from

money

utilities—telephone, electric and

keep

to

power, and are now ready for production after exhaust
tive tests in actual use both in France
and in the United
States. The Continental-Turbomeca

.

President, Westinghouse Electric Corporation

in

for

,,

,

gas— in try¬
industry, find
their construction programs
large;, what is really tre¬
mendous compared with the programs of a few years
ago.
It is hard to realize how large it really is. The

ing

Bordes, France, under sponsorship of the French Air
Ministry. These cover a range from 200 to 1,100 h6rse-

it is going to compete and hold its markets,
business, and I believe that it is. So we may

demand

a

of

engines for its

with Western Europe, must spend a tremendous amount

means

At

towns and

as

great deal of money.

a

demand is there and

as

built

be

systems.

This will take

GWILYM A. PRICE

calculated risk

will

material and know-how construction outfits are swamped
with orders for new and improved highway

'United States.

Said still maintain production

schools

new

get the money to finance them.

can

American

a

new

are inadequate.
The growth of the automo¬
transportation is so great that it is not possible to
build enough to comply with the requirements.
Both

.

industry had not taken

for

Highways

The new developments thus far have been encouraging,
although it is too soon to predict the specific changes
which may take place.
It is hardly likely that, even
with the most favorable of political climates, the results
of firmly entrenched New and Fair Deal policies can
lie undone immediately.
But it is hoped these early
omens of change presage a new concept of Federal re¬
source development, which will halt the trend toward
riationalization of the electric utility industry in the

If

demand

tremendous

a

tive

customers.

i

be

to

seems

money to go into enterprise from almost every quarter
School facilities of the country are much under-built,

cf the

t

meet that

will make

every effort to maintain' its position of leadership in
such relatively new fields as atomic energy and jet

of promoting and proselyting "public" ownership in the

^

to

demand.

discriminatory and more businesslike manner than it
has been in the past. For example, the Federal agency
can effect economies by restricting its operation to the
distribution of electricity, and discontinuing its program
%

10

next

79

...Thursday, January 22, 1958

a

dental

large

annual business.

the

graduates,

in

1953

will

graduates

proportion

repre¬

of

our

It is estimated that

slightly

exceed

those

of

the past year.
We anticipate

that our net profit for 1953 will be
relatively low for the volume of business that
appears
to
be^ obtainable. This is due to rapidly increasing
manufacturing costs together with the

abnormally high
resulting from marketing a new item of
equip¬
which, owing to price and other
restrictions, can¬

expenses

ment
not

be

reflected

will also be

in our selling prices.
Our net profit
adversely affected if the present high tax

rates continue

throughout the

year.

"

*

Continued

*.

on

t

page

82

Financial-Chronicle

yolume 17T :Nuniber"5188Y/. The Commercial and

(361)

It aggregated 111,398 cars com¬
125,147 cars, or 22.2% above the
preceding New Year's Day, holi¬ pared with 103,266 cars (revised)
in the previous week and 67,220
day. week.
The week's total represented a cars one year ago. V
—
decrease of 56,478 cars or 7.6%
Total output for the past week
below the corresponding week a was made up of 111,398 cars and
week to almost 50,000 units, the previous year. The declines were
year ago, and a decrease of 94,783 28,739 trucks built in the United
firm's high point for any week rather mild, ranging from 6% in
retail trade and commercial serv¬ cars, or, 12.1% below the corre¬ States, against 103,266 cars and
last year.
27,776 trucks the previous week
ice to 10% in wholesaling, and sponding week in 1951.
It reported that plans are un¬
and 67,220 cars and 24,720 trucks
12% in construction.
United States Auto Output
der way by "low-priced and highin the comparable 1952 week.

Business Failures Turn Slightly

Continued'• from page 4

priced" auto makers to add sec¬
ond

shifts

assembly

daily
Some

and

overtime during February.
auto

bdusby

Steel' Output

Level

keeping open on
The over-all strong demand for
Saturday as part of a drive to turn
steel continues to bring out new
out "perhaps 1,400,000 cars in the
first quarter this year," "Ward's" production records says "Steel,"
the weekly magazine of metaldeclared.
working, this week. There's new
Although the quota set by the
evidence, however, that a balance
National Production Authority is
between steel supply and demand
1,250,000 cars in this period, auto
continues
to
approach
"Steel"
makers are looking forward to
the

plants

are

"removal

controls

evaporation"

or

by

March

of

staled.
United

States

exports

in

No¬

vember declined to $1,177,700,000,

In the

according

exports were

to

reports.

6%

be¬

low both the 1951 monthly aver¬

other

specialties,

extends

tne

trend

the average for the first

civilian consumers, such as pro¬
ducers of stoves, refrigerators and
similar goods, a second quarter
allotment

of

nine months of 1952.

department

the

seven

noted.

its

highest

point

in

ten

prior

week

3,241

trucks

and 3,488
in

the

cars

the

at

but

of

steel

Construction

amount

same

level

million

of

tons

represented by tne
permits issued in 215
cities including New
York,
amounted to $4,435,u28,490, Dun &
Bradstreet, Inc., reveals. This was
the third highest on record, being
exceeded only by the two preced¬
ing years. The decline from the

other needed

as

The

valuation of

1951 total of $4,584,466,337, was
3.2%, while comparison with the
peak 1950 volume of $5,549,694,106, showed a drop of 20.1%.

than

failed

one-half
as

as

Retail

trade

erating

rate, of

steel

having

93%

the

capacity
will

of

be

for
at

of
the

an

Continued

1951 week.

Meet Your
ii

No. 1" FREIGHT

INFORMATION MAN

entire

capacity for the

ning Jan. 19,

companies

steelmaking
industry
of

average

99.1%

week begin¬

1953, equivalent to

2,234,000 tons of ingots and steel
for castings. In the week starting

In three cf the eight

Declines

in

other regions

ranged

from 2.3% in the Middle Atlantic
to 20.7% in New

England.

1952 total to 7,-311"some 6% belcw
that in
1951. This marked the
third

consecutive

trend

from

9,246

reached

the

year

of down¬

postwar peak cf
in
1949,
"Dun's

Failure Index," records.
The size of casualties increased
in 1952, in contrast to the decline
>

in

number.

lion,

the

liabilities
were

the electric light
industry for the week

ended Jan.
at

17,1953, was estimated
8,121,357,000 kwh., according to

The current total

involved

in

was

and

Holiday Week

the

week

ended

1951, but other totaled 688,232

trade

groups

had

fewer failures in 1952 than in the




22.2% Above

New Year's Day

Loadings of revenue freight for

Manufacturing suffered heavier
casualties than jn

Car Loadings Rise

Jan.

cars,

10,

1953,

according to

the Association of American Rail¬

roads, representing

an

"answer

freight repre¬
professional
man," with ready

to

the collective infor¬

sentative

access

mation,

increase of

is

a

knowledge

and

"know-how" of Santa Fe's
entire

88,655,003
kwh. below that of tne preceding
week when output totaled 8,210,012,000 kwh. (revised figure). It
was
581,478,000 kwh., or 7.7%
above
the total output for the
week
ended Jan. 19, 1952, and
1,212,539,000 kwh. in excess of the
output reported for the corre¬
sponding period two years ago.

exceeded only

in 1949, since 1935.

industry

and power

of electric energy

by

Rising to $283.3 mil¬

1952 failures
once,

amount

the Edison Electric Institute.

Business failures dipped slightly
in December to 583, bringing the

•

Point of Previous Week
The

answers

Santa Fe

Your

Electric Output Eases From High

distributed

knows the

Freight Representative
to your

problems

is either

in your town,

tons

geographi¬

Pacific and West Central regions,
up 11.3 and 10.3%, respectively.

Your Santa Fe

organization of trans¬

portation specialists.

F. H.

He

has your town

assigned to
he is no fur¬
ther away than your telephone.
Call on him freely for expert
advice on your shipping prob¬
lems. Find out why // pays to
ship Santa Fe all the way.

or

him. Either way,

Rockwell, General Freight Traffic Mgr.

Santa Fe

System Lines, Chicago 4, Illinois

Santa Fe-all the way

concerns

accounted

the op¬

output was 2,071,000
and the rate 99.7 %.

cal divisions, building permit vol¬
ume exceeded that of a year ago.
The best advances were in the

many

were

princi¬

pally for the week's decrease, with'

Steel

and

Iron

Institute announced that

year,

recorded.

forms, "Steel" states.

American

last

iri 1939 when 367

finished

January 12, the actual rate was
99.3%
of capacity and output
Building plans filed, in New
totaled 2,238,000 tons. A month
York City alone last year were
ago output stood at 102.7%, or 2,valued at $500,980,268, comparing
133,000 tons, while a year ago
with $556,572,036 in the previous
when the capacity was smaller
12 months' period, for a loss of
actual
10.0%.

as

They remained
far below pre-war mortality; less

private homes reached

during 1952,

week

in 1951.

steel (equivalent to three or four
1,074,weeks' production) will be neces¬
300 units, 54,200 above the 1951
sary to rebuild balanced inven¬
figure. There were 14,200 fewer
tories equal to 60 days' full re¬
public housing units started last
quirements. At the present rate of
year than in 1951. A gradual eas¬
consumption it will take six
ing of curbs on the use of building
months to reach this goal, declares
materials and relaxation of mort¬
this trade magazine.
gage credit controls helped spur
Many steel consumers have
the increase in housing volume,
plenty
of some finished
steel
the department pointed out.
products but they lack certain
Building construction volume
of

the

slightly below the 167 whMa

occurred

and

comparable

in

now

finished steel

more

over

equal to 90%
they used in the
average quarter prior to the
United States imports in No¬
Korean war. They were previ¬
vember were valued at $803,800,ously scheduled to get only 70%.
000, or a decrease of $14,000,000
Copper and aluminum allotments
from the October total, and $15,to these consumers will be boosted
000,000 below November, 1951.
also, it adds.
Housing put in place over the
The continued march toward a
nation last year totaled 1,131,300
non-farm units, a rise of 4% over matching of demand and supply
should
put
the
average
con¬
1951, the United States Depart¬
sumer's steel inventory in balance
ment of Labor stated. It was the
by July 1, the National Production
fourth consecutive year that vol¬
Authority believes. It is estimated
ume topped one million and sec¬
ond only to the 1950 total, the conservatively that five million to
age and

to

East, pressure on ware¬

$210,000,000 less than in No¬
products.
vember, 1951, though foreign aid
Another indication of the im¬
deliveries were twice as large.
Shipments cf United States goods provement in supply and demand
abroad have been falling off since balance, this trade weekly notes,
last June because of import re¬ is the possibility that National
strictions imposed by foreign Production Authority will give
November

8%

weeks, according to "Ward's Auto¬
motive Reports."

158

Jan.

15, from 163 in the
preceding week, according to
& Bradstreet, Inc. Casualties w»:e

United States last week advanced

houses for Sieel is easing sligntiy.
First apparent in tool steels and

or

countries,

Canadian plants turned out 7,Ten-Week Period
146 cars and 2,115 trucks against
Passenger car production in the 6,614 cars and 1,964 trucks in the

dipped to

ended

states.

"Ward's"

1,

ures

Scores Highest Point in

Scheduled This

Week at Fractionally
Lower

Downward

Commercial and industrial fail¬

,

The State of Trade and

U

on

page

83

82

(362)

The Cok<imerr\h1 ,t;nl Financial
Chronicle... Thursday, January 22,

Continued

jrom

80

page

A.

.

The

President, Philadelphia Electric Company
Since

World

War

expansion proof the nation's electric companies has more than
doubled their investment in plants and equipment to
produce and distribute electricity. Last year, electric
puwer aemanus reached the highest
levels in history, but due to the fore¬
sight of the hundreds of investorowned,
business-managed
utility
companies, production capacity was
II,

the large-scale

sufficient to meet the upward surge
of
new
and
ever
wider
uses
for

electricity and gas, in the home, in
the office, and in industry.
While a shortage of critical ma¬
terials, aggravated by last summer's
steel strike, held back the electric
industry's construction program in

1952,

the industrial expansion was
delayed in about the same de¬
gree by similar shortages. As a re¬

also
R. G. Rinclitte

sult,
in

problems

no

meeting

encountered

were

for
electric
power, which were lower than had been anticipated.
Expenditures for new electric utility construction in
1953 throughout the nation are
expected to be about the
same as in
1952, something more than %1V2 billion, bring¬
ing the total costs of the electric industry's expansion
program to more than $15 billion since the end of World

demands

War II.

Just

for the

as

utility

general

pliances

country as a whole, the rising demands
by Philadelphia .Electric Company

that

in

the

of

the year

the

place

require

for these services to

even higher levels.
Philadelphia Electric Company's overall expansion
improvement program involves expenditures aver¬
aging $1 million a week throughout this 1946-1956 period

dustry has

a

with

the

families

new

high

of

rate

all

wages,

and

large

employment

tend

to

at

penditures of approximately $258 million

are

pur¬

terrific

influx

pacity under construction which
by

1955,

thus

capacity available

than

more

scheduled to be in

doubling

in the Philadelphia

following the end of the
additions

in

are

restrictions

present

include

Philadelphia

the

1953.

removed

or

1952

are

Fall

business

slow in starting

was

down

two

125,000-kilowatt

Electric

Company's

and

early fall.

sometimes

period

is

i:

Phoenixville is

planned for 1954,

A

unit

second

of

200,000 kilowatts capacity is scheduled at
Cromby sta¬
tion for operation in 1955.
Other

major additions to the Philadelphia Electric
Company system include the expansion and reinforce*lwment of gas production and distribution facilities.

This overall Philadelphia Electric
Company
real

that

assurance

power and gas

in this

M.

area

H.

all

demands

electric

will be met.

%

although there

for
are

the
some

the horizon that will need
to be
the high cost of

dealt with.

discovering oil, there

are

supplies in all producing areas of the
country, with the exception of Cali¬
fornia.
California will need a sub¬
increase

create

centive
There
for

is

crude

needed

correct

oil

domestic

needs

defense

situation

levels

Wyman Rolph

In

residual fuel oil

present

storage

there

is

ably at

a

lower rate than

price ceilings
make

the

are

of dividend.

This is easy to understand since the mutual
have functioned longer in the field oft
ilexible savings and it is their
primary business.
" '.

M.

H.

spending
or

is

for

the

to

meet

From

the

materials

the

of
or

needs

of

view

government

prices, in the

associations, prior to the

Loan

of

batteries

for

ever

widening
materials handling

operation

in

we

for

of

kind

our

In

purposes.

mechanization has

batteries^ that

demand

must be

ever

fact,

creating

are

batteries

the

advancement

uses

for

the alert for

on

car

for

broadened the

so

of

for storage bat¬

Increases in costs

and

use

for

storage

new

uses

power—Storage Battery Power.

of

banks in

the

1952, after four

deposits of mutual

years

place

as- a

of increases at

indicates that savings banks have
reservoir for personal savings that they have

a

promise

as

as

in

There

should

be

a

ments

year

ago,

large

was

an

at the

in

the

rate

The

of 7.6%

commercial

not
de¬

made

their rapid progress because
they put the regular
savings account promotion ahead of the monthly share
promotion. Savings banks have the know-how to handle

this flexible type
think

and

last year but prob¬

If

industry would

correct

year

years.

than

these
is

area

now

in

of savings account; they have ceased
being "conservative" is their only asset
intend to be leaders in the savings field, in

that

they

fact

well

as

chartered
where

at

the

rate of 8.5% in 1952,
realizing
gain of over $3 billion and increas¬
ing total savings deposits to over $41
billion. In comparison with the
post¬
war growth of savings and loan asso-

tions, the 1952 deposit increase in
savings accounts in commercial and
savings banks combined

was

ord, for in each of the Tour

a

visions,

such

included

in

savings banks are state
prepared, in those states

are

liberalize their

those

as

the

to

or

for

1952

authorizing

laws

enacted

investment

equity
in

level,
in

the

savings banks should

1952 and better.

changes

extension
pro¬

investments

New

York

Hence, with national income continuing at

State.

its present

continue to

do

well

as

,

W.

W.

SEBALD

President, Armco Steel Corporation
All

1953

s^rts

point to

will be

will

the fact that

great

as

as

any year

it is also evident that

ever,

overtake

steel

in

Production

It

now

for

history. How¬
growing ingot capacity

our

our

the demand for steel sometime

middle of the year.

after

the

appears

that most of the major segments of
the economy will remain fairly sta¬
ble

during the next 12 months. The
are that military

expenditures will be equal to the
rate
attained
during the latter
months of

1952—something

$50

over

billion, annually.
The
of

backbone,

our

still

American

balance wheel,

or

economy

tures—is

—

in

capital

strong

a

business

1953

of

record

this

will

for

set

such

a

spent

expendi¬

position.

record
$27 billion lor expansion during 1952
and plans for the first three months
new

a

first quarter

expenditures.

momentum

it

With

believed

is

that

W. W. Sebald

capital outlays for 1953 will not

sion,

it

now

1952.

In addition to this business

that

appears

home

expan¬
commercial

building,

construction,

and public works will also contribute to
high rate of business activity.
It is expected that the demand for consumer durables
(automobiles and many of the appliances) will remain

a

strong for

months ahead.

some

Inventories of these prod¬

are

business.
me

ity

"j
n

consumption

of

demand,

steel

for

the

120

million

tons

has been reported that

need

civilian

Sometime during the year our
out

tries
B.

could

be

Schwulst

1948 to 1951 the in¬

.

.

generally good

However, since it is believed that steel

will overtake

turn

*

adds up to another year of

of

annually—12%

capac¬

controls

will

over

disappear.

industry will be able
steel

ingots

annually.

to

It

military needs will be 14 million

using steel at
more

for

uses

tons for the year. That means all other
Earl

rec¬

years

Since

statutory obstacles exist, to work
themselves, either to promote

their facilities

of

All of this

an¬

banks grew

in tradition.

as

institutions, they

with all other consumer goods.

increase

savings depart¬

were

low, and sales at the retail level are currently
running ahead of production. The continuing home build¬
ing program and our present favorable birthrate (a new
customer every 13 seconds)
plus high employment at
high wages insure good demand for these products along

depos¬
banks now

and

Deposits in
of

it- did

in
savings

loans, while

enactment of the Home'

of Federal savings and
interested in promoting monthly
payment share accounts. The Federal associations have

associations,

ucts

Total

savings

$22 billion
was

but

increase

realized.

mutual

1952

per¬

economic picture looked fa¬

vorable

commercial

Act which set up a system

loan

be far short of

SCHWLLST

$1.6' billion in

and

present indications

.

use

primarily interested

are

and loan

storage

point of

our

continuance

banks

deposits

is

by international develop¬

available

industry.

need

expanding

nually.

by lack of flexi¬

commercial

demand

accel¬

available, there is sufficient battery
producing capacity in the country to meet normal needs.
long range outlook for the industry is a bright one
even though
competitive conditions promise to be chal¬
lenging. The larger numbers of cars on the roads and

in

Robineau

banks

that

The

its

the

adjustments to




battery

little

general

during the past two

problems and will
enjoy a better
prospect.

be

a

lifted, I believe

necessary

should

developed to full capacity,
haps due to their own policies.

of

over

year.

now

by

on investment.
In these days
additional Vz% is worth getting.
thing, it is that the savings banks

an

first choice of the people in an area where
all three
types cf institutions exist and pay about the same rate

material supplies are concerned, lead—the

not

prod¬
problem is

bility in the present price controls.

felt

controls, either with respect to materials
storage battery industry

a

becomes

reasonable increase in demand

half

about half that level,

the East Coast and

on

as

An increase

the

imports

defense

certainly be

current

metal used

ments, lead

savings

these

This

area.

by

first

indications

are

and if that balance is not upset
the

exceed

this

the

industrial

near

by the industry—seems to be in
supply-demand balance in the world market

good

a

diminishing market
in

will

effect

far

so

posits

ucts

its

principal

Continent and Rocky Mountain areas
is seriously squeezed
by the over sup¬
ply of residual fuel oil in face of a

accentuated

of

at

rates,

are

battery industry.

in¬

operating profit structure for
refining industry in the Mid-

for

sales

see

continue

during

There

EARL B.

The
the

to

batteries

President, The Bowery Savings Bank, New York City

serious.

more

pected

„

institutions; they are only con-'
safety and ready availability of their

the

If 1952 has proved one

the

situation.

unless

v

x

divi-!

strong bid for the saver's
ancf

a

favorable to

situation, the stor¬
industry might be ex¬

battery

Government

price

profit and

their

adequate crude

adequate refining capacity

all

world

the

to

in

In spite of

It

year.

important changes in

any

being deferred and if that trend continues

an

industry for, 1953 is good,
potentially serious problems on

with

of low interest

international

age

teries for these purposes.

oil

cerned

to

the

of

that automotive battery

accessories should increase the demand

President, The Frontier Refining (C0.
outlook

the

the

ROBINEAU,

time

increase

Barring

w

With

program

for

is

automobile registrations.

pw-.

capacity

Cromby electric generating station

a

lead

moderately dur¬
ing 1953 in line with the increasing

HHHP

erated,
serv¬

will

of

somewhat below

now

this

expected

sales

during

price

result, however, field

a

are

for

This condi¬

occurs

the

when

normal

gen¬

Delaware

and field inventories

by distributors and dealers during the
summer

401

make

funds, service, and return

Most

expected to exceed those for the preceding year.

held

tion

-J.*

permitted to pay the highest

to

The general savings
public is not especially concerned«
with the differences in the
statutory character of these
three types of savings

President, The Electric Storage Battery Company

S.

The first unit of 150,000 kilowatts

at the company's new

to

other

Sales of automotive replacement batteries for the year

World War II.

electric generating station in Philadelphia to be in

stantial

and

savings

ten

of

Revenue Act of 1951 which made mutual
savings insti¬
tutions subject to Federal income tax.

Rodgers

materials

raw

on

S.

A.

S. WYMAN ROLPH

■

of

to the depositor in the form

Savings and loan associations are'

are

so

respon¬

portion

move in 1952 had
they not been com¬
pelled to take immediate action because of the Federal

are greatly
entirely. The introduction in this
country on a large scale of machines from foreign
countries will necessarily have its effect on the type of
sales promotions used by the American companies, but
the final outcome should be good for those American
manufacturers in financial position to carry on their
development and expansion work.,

modified

%

and

and

not have made the

government regulations affecting production

generating
in

area

rate

amount

by mutual sav¬
ings bank? decreased substantially. Savings banks have
been improving
earning power steadily since the end of
World War II toward this
goal, but many banks might

a

of

sewing machines
from foreign countries, particularly
Japan, and because of the fact that
the
potential
field
for
household
sewing machines still looms very
large and it will keep the American
industry busy, providing, of course,

were

and

earn

the

In 1952 the differential
between the savings
loan dividend rate and the rate credited

We make these statements regard¬

the

The

dend

on

interest.

or

in

dollar.

less of the fact that there has been

that

difference

earnings passed

able to

chased.

tradition, distinct in character and

the

more

planned.

Electric generating capacity
already added here since
war, and now in service, amounts to 708,000 kilo¬
watts. There are an additional
600,000 kilowatts of ca¬

and

for

sewing, which means
household
sewing
machines

inventories

provides

net

dividends

declining. As

at

sible

more

rising demands of the homes, businesses, and
serves.
Actually, since 1946, Philadelphia
Electric Company has spent $320 million to
expand and
reinforce its electric, gas, and steam
systems, and dur¬
ing the next four years, through 1956, additional ex¬

ice in

statute

as

encourage

home

„

«

of
the
high

with

loan associations is estimated at
$3 billion, which brings
the total private investment in these
associations to $19
billion from $7.4 billion at the end
of 1945 and $9.8 bil¬
lion at the end of 1947.

the general public is
concerned, these three
types of savings institutions serve the. same purpose.
The investment and management of each
is, however, by

number

coupled

crease in private investment in
savings and loan associa¬
tions equaled or exceeded the increase in savings deposits
in all banks combined. The 1952 increase in
savings and

Insofar

The wide interest in home sewing,

together

it

Future

to

vp

us good reason
sewing machine in¬
good year ahead of 11.

industries

erators

the end
to believe that

through right

to meet the

years

of electrical ap¬
middle oi August

which gives

and

service

the

American

substantial increase in facilities to

a

produce gas and electricity here. Even though business
conditions generally should level out or recede next
year, as many analysts
believe, Philadelphia Electric
Company confidently expects the new local electric and
gas requirements of the customers to boost the demand

I

buying

of

about

carried

services

customers

•

Sewing Machine Corporation

resumption
took

1952

year

RODGERS

S.

President, White

RINCLIFFE

G.

R.

■

1953

a

consuming indus¬

rate of 106 million tons

than they received

in 1950, when

Continued

on

page

84

.

r.7

Number 5188

Volume 177

The Commercial and Financial: Chronicle

...

■

^

•

r

\

j

Continued from page

81

casualties

and

failures

While

"ial

New York

last

wholesale

service

lines,

cas¬

y-ar's

fig¬

tiade

held

cents

than

year agd.

a

'

a

fluences
slow

.

in

Five geographic regions reported
small decreases during the week,

down about
week, and about
under
the
comparaole
was

included

continued

the

export movement, heaviness
other

some

commodities,
would

that-Brazil

reports

and

•

cumbed
New

Pacific,

tne

than

last

New

in

year

large

Eng¬

sell

a

the

1953,

England, East South Central
Pacific

and

States.

five

In

other

prevailed,

while

Central

Higher in 4-Week Advance
The wholesale food price

to

with

be

many

holding

*

four

weeks

at

For

1952.

-ended

Jan.

10,

was

re¬

For the year 1952, depart¬

ported.
crease

of

increase of 13%

an

was

of

Retail

sales

1%

registered

above

trade

an

1951.

volume

in

New

The index represents the sum
total of the price per pound of 31
.foods in general use and its chief

function

;

is to

the general

show

.trend of food prices at the whole¬

jS

sale level.

Reverses

^

The

general

measured

'

Sharp

Declines in Preceding Week

•/

i

Wiih

Course

were

Dun

street

daily wholesale commodity

price

index,

last

week

•level

since

fell

rather

reach

to

the

mid-July

comparing

.previous,

with

lowest

Jan.

on

280.90

corresponding date

the

on

year

a

13,

week

a

with 308.39

and

The

1950.

index closed at 278.24
'

sharply

ago.

*

Grain

prices moved

'lower last week in
the

of

All

liquidating:

heavy

ment of

irregularly

continuation

a

move¬

against 109,630

a

163,200

as

bales,

week ended Jan.
151,000 bales,

compared
a

of

contracts

wheat

corn hit new
leading the general decline.

„and

the

ended

weeks

Jan.

10,

an

year.

of retaJ

slightly higher than a

was

did not suipass the
reached

two

retailers

most

Although

their

years

boosted

when scare-buying
sales appreciably.

re¬

volume

sales

trend
far as
available re¬

expense

during

1952

so

10 months through

For the

the

1952

transportation

VALLEY
eral sinking funds.

Initially these

was

ratio was re¬
four points, to
reported for the year and
an 72.6%.
For the 10-month period
amount
equal to any dividend common share earnings amounted
With The
To to $4.35 compared with $3.05 a
company has come a long way paid on the common stock.
year
since its latest debt readjustment date the last" named provision has share for the like 1951 interim.
In
Among the more speculative is¬

enjoying considerable pop¬
ularity in the rail group is the
common
stock of Lehigh Valley.
sues

contingent portion of the interest.
At the same time, the company

trade

year ago but
record
level

favorable

approximately 1.5 points
under
that
of
a
year
earlier.
Maintenance
charges were also
substantially lower in the., 1952
interim with the result that the

ratio

LEHIGH

which
points

prewar

October

The

dollar volume

the

1937-1941 aver¬
age of 41.9%.
This reduction in
the transportation ratio contrasted
sharply with the increase of 2.6
points for the Class I carriers as
a
whole during the same period.

from

veal.

the

total

1951 the trans¬

has experienced no
earning and paying this

company

trouble in

amounted

to

50%

academic

been

have been

paid

of

as

on

net

no

income

overall
duced

operating

by

dividends both instances these earnings are

the stock since calculated

1931.

other

enal

been

able

a3

Under the terms of the debt re¬

slightly above last year, there wa;
a noticeable increase in the num¬

adjustment plan, and designed to
alleviate the difficulties that had

:

strength

previous week,

Fol¬

the

shown

prices weak¬

corn

ened, influenced by fairly large
/receipts of cash grain,

decline in

a

| cash prices and expanded country

no

official

has been made,
financial

announcement

it is understood in
that just -before

circles

the end of last year

the combined

share.
ent

earnings

pre-fund

1952

year

On

the

general

moreover,

it

topped

industrial
seems

outlook,

likely

that

that figure. It

made the readjustment necessary, charges had been reduced to the must also be borne in mind that
hours strong sinking
fund
provisions $4.5 million annual level. Attain-*- with the reduction in interest
and relaxed credit
terms helped, were provided. First there is the ment of this goal has, in turn, in¬
creased optimism that the stock charges a considerably larger pro¬
to bolster buying
-prior lien sinking fund, limited
may go on a dividend basis in the
portion of such earnings may be
The total dollar volume of re¬ to a maximum of $600,000 in any
relatively near future.
tail trade in the week was esti¬ one year, to be made up from in¬
considered
as
directly available
Aside
from
the
improvement in
mated by Dun & Bradstreet, Inc., terest savings on prior lien bonds
for the
benefit of the common
the
debt
picture
there
has
been
to be from 1
to 5% above the retired subsequent to Jan. 1, 1948.
considerable
betterment
in
the stock.
level of a year ago. Regional esti¬ Far more important were the gen¬
mates varied from the comparable
ber noting

ago

declines from the year-

shopping

Late

level.

.

the following per

1952 levels by

New. England

+ 3; East —2 to +2;

Coast

cific

parts
of
shopping.

-f6.
Severe
England
anc

to

+2

New

in

weather

the

hamperea

East

promotions

Reduced-price

ol

grain. Trading apparel stirred shoppers in most
Re¬
on the Chicago parts of the nation last week.
Board of Trade in the previous tailers of apparel generally con
week averaged slightly more than tinued to chalk up larger sales
the

week

above

a

preceding

year ago.

well

and

figures
week

1

than

in

the

comparable

The most pro¬
gains were in the de¬
mand for children's clothing, wo
a

year ago.

nounced
:

:

There

in

was

a

substantial pick-up

bookings of advertised brands
family flour last week as mills

-of

men's sportswear,

and haberdash¬

ery.
Early offerings of sprin
.'protected against a price advance
clothing in the South and Pacific
effective
yesterday,
Business in Coast
Regions stimulated favor¬
hard
winter
flours
was
disap¬
able response.
Price savings or
pointing although a fairly good shoes continued to stir Interest.
volume

-

was

in

noted

South-

the

Export interest in flour re¬
mained Very /slow.
Cocoa prices

fwest.

moved

sharply lower

commission

as

house

trade and

selling

met

with limited dealer demand.

Sell¬

ing

was

prompted largely by more

optimistic reports from Brazil re¬

garding the Bahia
small

cocoa

at

46,761

Raw

ago.

showed lit¬

weaker

tone

on

developed

the

prospect

a

of

•increased supplies.

Shipping
sugar

was

out
more

week

a

yea

the

year-ago

levels were ii
foods, cannec

the buying of frozen
meats and

goods

bags,

sugar

over

for

change from last week, and
compared with 95,692 bags a year

prior week oi

The most noticeable rise

before.

interest

-

either the

in

corresponding

The

tle

,

the

and

Warehouse stocks of

spot stocks.

Housewives spent more for food
than

cocoa crop,

manufacturer

oleomargarine.

household

purchasing

of

held

the

near

previou

week's level and continued to ex
ceed that of a year ago.

Among the most popular item;
household
textiles,
flooi

were

coverings,

decorating

■

granulated

active

as

sale

markets

refin¬

quickened

percept¬

follow¬

ibly the past week as buyers pre¬

ing the ending of the dock strike.

pared for the spiring and summe:

ers'

operations

expanded

Domestic cotton markets




were

selling

seasons.

The

Member

materials

and incidental furniture.

Trading activity in most whole¬
of

a

of the pres¬

basis

1953 results will top

for

$5

offerings of cash
in grain futures

.

•

remain'

While

•

funds.

general sinking fund does
Although the breakdown of ex¬
permanently at the
penses is not available at the time
high level at which it was initi¬ of this writing, the preliminary
ated.
When
the total of fixed
figures indicate a decline in earn¬
charges and contingent interest is
ings, compared with a year ear¬
reduced to $4.5 million annually
lier, in the month of November
the requirement is halved—25%
and it is possible that the same
of net income plus 50%
of any
thing
occurred
in
December.
dividend paid on the stock. Prog¬
ress toward this goal, spurred
by Nevertheless, it seems almost cer¬
not

progress

ing.

and

sinking

before

reserve

The

to make phenom¬
conditions
of
recent tain that
in the program for the boom
cutting down the principal amount years, was far more rapid than the full
of non-equipment debt outstand- had
originally seemed possible.
has

full

a

—1 tc
South -f-3 Ic
-j-7; Southwest +4 to +8; North¬
seasonal lows in
west + 1 to +5; Midwest and Pa¬

future

lowing

four

1953,

calendar year

detailed figures now

parts of the nation in the period
ended on Wednesday of last week.

centages:

recent weeks.

"

the

week

higher

for

reported at

ported

level,' as
& Brad-

price

by/the

similar

Entries into the CCC roan

ago

"Wholesale Commodity Pr'ce Index

reported

was

The

.•

(

the

of 4%
portation ratio was 38.8%
from that of tne
represented a cut of 3.3
of 1951, while for

preceding week a decrease

continued

b,y

;

the

sharp

increase of 5% was re¬
in¬ corded. For .the year 1952, volume
declined 7% under the preceding

Dun & Bradstreet, ago.
plan was consummated a little
Inc., rose two cents for the fourth
less than four years ago.
In that
Trade Volume Shows Mild Expan¬
successive weekly advance, bring¬
sion
Encouraged by Promo¬ plan maturities of various of the
ing the Jan. 13, figure to $6i5,
underlying mortgage bonds were
tions
:,the highest since Nov. 18, when it
extended. The junior bonds were
stood at $6.27. It compared with
Spurred
by
many - attractive exchanged for 25% fixed interest
J $6.57 on the like date a year ago, promotions,
shoppers
increased bonds and the 75% contingent
their
spending slightly, in most, bonds. In the intervening years
]or a drop of 4.9%.
compiled

York

cotton
farmers

846,400 for tne like period

index,

,

reached at

reported from that

was

ment store

week earlier, and
155,933 two weeks ago.
Entries
for the season to date iotaled 1,-

Index Lifted Mildly

Price

said

2

un¬

changed.
Food

limited

stock during the

West South

the

States, remained

quality

good

were

prices.

mild dip from 1952 levels

areas, a

of

ever

similar week

the

quantity

ferings

the

highest level

(revised)
of

of Cotton at the
land States and the South Atlantic world price level. Trading in the
10 spot markets increased some¬
States.
Contrary to this trend,
failures
in
the Middle Atlantic, what and totaled 117,400 bales last
East North Central and East South week, against 84,600 the week be¬
Central States, rose mildly in the fore, and compared with 225,100
in the same week a year ago. Of¬
week.
More
businesses
suc¬
lxiciuomg

%

* »

past week underwent a operating status of Lehigh Valley
contraction from that of in r ecent years. To a, considerable
this time of the year. Showrooms the corresponding 1952 period, due degree this has been attributable
were more heavixy thronged with
to inclement weather.
Estimates to
dieselization, although omer
buyers than ever before.
by trade observers placed the de¬ property improvements have also
contributed to the savings.
cline at about 10%.
The
store
sales
on
a
Department
benefits are best indicated by tlD
country - wide
basis,
as
taken
According to the Federal Re¬
trend
Of
transportation
cost§,
from the Federal Reserve Board's
serve
Board's index department
which have been on the down¬
index, for the week ended Jan. 10, store sales in New York City for
trend ever since the end of World
1953, decreased 3% from the level the weekly period ended Jan. 10,
War II.
Figures for the full year
of
the
preceding week.
In the 1953, decreased 11% below the
1952 are not as yet available. For
previous week an increase of 4% like period of last year.
In the

Weakening in¬

ago.

year

a

The

for the

cents

price

reach

season.

spot quotation ai 32.40

pound,

cent

10

ing and retailing had fewer fail¬
ures

levels for tne

new

one

hedging and
last week and

pressure

moved downward to

values

1952 level, manufactur¬

-steady at

considerable

liquidating

and
In¬

to

commt

exceeded

under

from

construction

In both thes,

failures.

ualties

81

to

lh

appeared

creases

ures.

falling

manufacturing
dipped slightly.

90,
while
wholesaling

r

volume of wholesale orders
the

/Its

83

(363)

total dollar

THE

MARINE TRUST COMPANY
OF

WESTERN

NEW

YORK

.

Federal Deposit
Insurance

Corporation

81

(364)

Tire Commercial and financial* Chronicle

Continued

from

82

'page

record volume of

a

;

CASIMIR A

,

steel-using products

was

The

•by America's factories.
One other factor to

Less of

^.find its

way into the export markets thereby adding to
the amount available for domestic consumption.

for

bank

has been unusually

greatest

expansion

curred in loans

tate

FRANK A. SEWELL

In

President, The Liberty National Bank and
Trust Company, Oklahoma City, Okla.
the

region served by this

erally be described
with

neighboring

Mexico,1

we

are

the

as

the

State

of

areas

on

bank,

Texas,

Kansas and New
optimistic for 1953 and

whole

believe

gen¬

can

Oklahoma together

of

that

business

activity

equal the levels of 1952.

will

Since mid¬

find

major

securities

oil industry extremely ac¬
Drilling activities were some¬

curtailed

months

of

during

1952

the

due

to

last

the

To

record levels.

This is

steel

economics

of

manufacturing

in

costs have made the

the

southwest

very

favorable.

nation
1953.

as

whole

a

"

should

not

continue

to

advance

in

'

.

JOHN A.

SIBLEY

'

*

•'

.*

4

.

.

Chairman of the Board, Trust
Company of Georgia,
Atlanta, Ga.

Many factors point to

high level of business activity
1953. The employ¬
ment of the latest
technology in building and in equip¬
ping new plants in the recent industrialization of the

ffior the

South

country

as

a

whole during

a

the

order

skills

;needs of
are

our

to

necessary

meet

at

change.

Will

be forced

funds

public

monies

ernment

to

a

to

Federal

of

the

dollar.

\

necessary to bring about
I do not believe that they can be

a

sounder

but

well

It

our

industrial

full

concerns

operation

business, is
making for

business optimism.
still

while

under

ponderables

H.

Sieckraann

the

far

into

a

stimulat¬

general
Investment psy¬

more

hopeful,

psychosis

of

is
im¬

overhanging the ecanomy.
Not withstanding the extended
drought in this section, farmers are
prosperous
and savings are in an
clSCCnding CUTVQ.




the

tional need.

for

1953

is

this steel

factors
are

Due to

a

than

in

theless

the

in 1952

creased

Petroleum
W. G. Skeily

vital
ani

-

natural and
,

fewer

of

part
the

our

demand

commodity.

Oil

nation and

every

is

essential

to

the

industry when conditions require.

least

as bright
as it has in
recent past years.
We
further wholesome growth and success in 1953

industry and

Chairman

of

I.

our company.

SNYDER, JR.

the

Board

Pressed Steel Car

L. D.

Silberstein

The outlook for Pressed
is extremely bright.

power,

the

and

econ-

defense

ex¬

Steel Car Company,

1953

It is

on

and President,
Company, Inc.

confidently expected that

we

the

in

this

an

present

There

are

boom.

no

dan¬

(3) Reduction in export shipments.
(4) Switching from steam to diesel
railroads.

by

achieved

of $80
million, and net
after taxes figure to be
$4 million.
Our total back¬

excess

earnings
arouni

log of orders for all divisiors is
presently in excess of $60 million.
An important factor
contributing
to this favorab'e outlook is the prod¬

diversification

uct

program

which

Manufacturing Corrp-ny of Los
Angeles, California, a leading manu¬
facturer

of

equipment,

petroleum

engine

pumping
air¬

lathes,

and

components, was acquired. This
has

program

resulted

in

a

John I.

Snyder, Jr.

marked

improvement in both the company's financial condition
and in the stability of its earnings. Like most steel fab-*
ricating companies, we experienced some difficulties in

obtaining

materials in 1S52. However, we lock for¬
improvement in steel supplies this year.
50% of our present sales vol¬
is represented by the sale of freight cars. The bal-

ward

locohiotives

we

books, sales probably should be

craft

excellent 1953.

expect improvement in the com¬
year over 1952 which was not good by any standard.
This difficult year was characterized
by—
(1) Labor troubles.
(2) Competition of oil and gas.
can

ing

Inc., in

will report substan¬

tial!^ Mgher s*les vo'"me ?r»cl
earnings than
in 1952. Based on orders
already on

son

All signs point toward

so.

Company are glad to do our part to
needs and defense goals and also to sta¬

JOHN

in taxes would leave the public I with more
to buy the things they heretofore could not afford.

industry

the

the output of refined products when it needs to do
in Skeily Oil

reduction

signals.

well-being of

Although stocks of certain refined oil products are
higher at present than is absolutely necessary, a reason¬
able reduction is now
being accomplished. From the
standpoint of our national security, it is good to know
that the oil and gas
industry has facilities to increase

money

The coal

and

citizen.

'

ger

oil

more diesel locomotives will be on the
rails,
planes will be in the air, and more homes will be
equipped for burning oil and gas. The expansion of the
use of petroleum far
exceeds that of any other energy

;

purchasing

in

and

economy

crude

increase,

,

excesses

national
for

gas and their products will con¬
The number of motor vehicles in use will

began in 1949. This program reached
its peak last October when the Axel-

no

1951.

fundamental

a

more

expect

prevailing at the
likely to continue
large extent to the

been

over

is

casinghead

tinue upward.

for both the

present rate for at least two years, preventing
of unemployment without which a depres¬

have

1952

Never¬

by the prospect of a more enlightened
governmental attitude toward all competitive
business,
the future of the oil and gas
industry continues to look

degree

There

in

year.

Encouraged

ex¬

The credit base is not over-extended.

wells

previous

its oil and gas production
sales of refined products in¬

and its

high, resulting in turn in;
employment and record con¬

the

de¬

shortage, Skeily Oil Com¬

drilled

pany

at

time

May the petroleum

during the strike period, but
the drilling of new wells was cur¬
tailed by a persistent shortage of oil
country steel tubular goods. Due to

bilize the oil

that the favorable

me

After the settlement of

pleted

,

to

any

prod¬

levels main¬
emergent na¬

industry rebuilt its inventories

meet national

boom

high

meet

penditures, which I do not foresee, would not cause a
depression, in my opinion. Long delayed but necessary
expenditures for roadbuilding, schools, housing and the
like would take up most of the
slack, and the resulting

backlog of orders :

a

tude towards

chology,

con¬

to

of refined oil

the

the oil strikes in

We

should undoubtedly have a beneficial effect
ony as a whole.
Even a sudden drop in

The

factor

of

further increase in the consumers'

in

changed political climate,
giving hope for a less punitive atti¬
ing

stronger in their

differ

I believe that the new Administration will be success¬
ful in reducing government expenditures, and that taxes
will be reduced accordingly.
This should result in a

economic wel¬

JOHN H. SIECKMANN
|
President, Mercantile Trust & Savings
Bank, Quincy, HI.

assure

and

I

sion is unthinkable.

fare, and to turn apparent prosperity into real
prosperity.

1953.

.

below

tained

impact of our defense program, the
rate of industrial production is at an

any

that

before.

ever

outlook

economic

at

report

and

purchasing power. The de¬
fense program is likely to continue

country, however, is prepared to undergo
such readjustment, if
necessary, in order to strengthen

area

Board

sumers'

some

the

stable

ucts

con¬

through the coming year,
beyond.
I feel that the

seems

present
in 1953.

Lelieve

this

the

continuation

a

only

parts of our economy will suffer and,
perhaps, some
pain will be experienced before a cure is effected. I

Important

of

larger in number

than

not

full

made, how¬

more

strike, reduced inventories

all-time

ever, without a period of readjustment from which

End reinforce and make

the steel

Will the present

thinner.

';!■

presented problems to the oil and gas
as it did to all
industry in the United States.
Strikes in the petroleum
industry in May, aggravated by

loans stay high or decline?
Will the
to look for other outlets to
put their
You can find
convincing answers to

cellent.

Changes will be
economy.

slumping?

or

SKELLY

The year 1952

government securities have

policy of moderate credit restraint

work?

economic

gov¬

responsible han¬

Joan A. Sibley
dling of public funds; from an unbal¬
anced budget to a balanced
budget,
and from a declining dollar to a dollar
whose value is
stabilized or improved. Our apparent
prosperity has in
fact run ahead of our real
prosperity due to the depre—.

elation

on

G.

industry

The

working capital and heavy capital outlays.
It is now becoming
clearly observable that the liquidity of our corporations has been
declining, particularly
since the outbreak in Korea. The
relationship between
liauid assets and current liabilities has been
growing

wards

expenditure of

by the
more

tight money situation.

a

strongly with them. I firmly believe
that the underlying facts
point to¬

We

W.

business.

either side of this
quandary.
My own belief is that business will be in need of funds
this year just as it needed them last
year, and for very
significant reasons—the growing shortage of
corporate

are

com¬

President, Skeily Oil Company

bank

banks

viction

move from an attitude of reck¬

less disregard in the

loans and

present, booming

tinue?

foregoing that those coal

a product especially suited to
pub¬
utility consumption are destined to be in a
relatively
strong position during the coming years.

limited and cost or interest rate will rise further. If
not,
what will be the state of business—balanced
and stable
as

the

lic

by business continue or will it ease off by next Spring?
If it continues, the available amount of funds will be

gloom,

Our economy as influenced
by the
irrational government will, no doubt,

J.

on

from

Ever since the end of World War II a
great number of
economists have predicted a depression or recession in
our
economy. It seems at this time that the prophets of

•

It is obvious from

panies which produce

has

*

the

industrial expansion and

substantial

months

President,
Pennsylvania Coal & Coke Corporation

a willingness to give
conscientious day's work for a full
<day's pay.- This is all to the good.

a

recent

L. D. SILBERSTEIN

a

undergo

in

the demands for loans

Chairman

evidencing

| will

meet

interest rates

put that region in a
strong competitive position. More¬
over, the people of the South are
new

reports that by 1975 the New
England electric companies will require at least
twice,
times, the present generating capacity.

if not three

banks, frequently and rather heavily,

reserve

to

should

showing marked aptitude to acquire,

for

a

ducers for expanding and
profitable operation.
New England Council

capacity by

securities

government

Federal Reserve

Activity in this region is, of course, also influenced by
the national picture, but we see no reason
why the

most valuable asset for the
country
in normal times there are increasing
well-mechanized and well-managed pro¬

risen and
may go even higher.
The big question is: will this demand for bank credit

Business in the southwest is also
being influenced by
the increase of
manufacturing industries in this area.
"We believe that this regional trend will
continue.
Our
immediate market for manufactured
products is in¬

lending

This condition has created

rigs operating in the United States and Canada are con¬
trolled by firms having their
headquarters in this State.

own

gency it becomes
to rely upon, and
markets

borrow funds.

or

sell

from
in

30% of all of the drilling

creasing; and higher transportation

single source of energy in the
country. Its supply is almost unlimited. In case of emer-

years,

capital losses because prices of government secu¬
rities declined and yields went up when the Federal
Reserve stopped
supporting prices of these securities.
Consequently, member banks have been borrowing funds

important to business in Oklahoma
over

,

meant

six

strike; however, tubular goods should become increas¬
ingly available in 1953 andNdrilling again should reach
-when it is realized that

their

additional demand for 30-40

an

of coal per year.
Coal remains the largest

the

the volume of deposits or loans. Whenever they fall be¬
low the required amount, a bank must sell government

the

what

Frank A. Sewell

in

keeping adequate
reserves at the reserve banks against deposits as
required
by law. Member banks at present keep about $20 billion
in these reserves, which fluctuate
weekly, depending on

in the financing of the petrol¬
industry, believes that 1953 will

tive.

have

commerce

maintain

general business conditions.
role

than

over*

as the Ohio Valley Elec¬
supplying the proposed Atomic Energy
project at Portsmouth, Ohio, will use IVz million tons

Banks recently

commercial banks
actively sup¬
plying credit to industry, trade and
been under considerable pressure to

Sienkiewicz

agriculture,
importantly affect ex¬
penditures, both for consumption and
capital improvements and, therefore,

eum

larger

long-term factors which will

are

these unfavorable ones.
^
; r
(1) Mechanization of the coal mines.
(2) Increased demand for the electric utility industry.
(3) The growth of the coal chemical industry.
1
: 4

million tons per year.
One single project alone such
tric Corporation,

at

rency.

can

a

increased

past
reflecting expansion in
loans and in public demand for cur¬

In this territory, where a
great part of the basic income is de¬

plays

Reserve

two

partially.

which

the Federal

but

However, there
come

capacity will represent

hand, have declined at
banks

continued

rived from livestock and

bank,

the other

commercial

factors, accelerated" in the current- year,! re*
ground '

It is interesting to note that the electric
utility industry
is currently
consuming 100 million tons of coal per year
compared with 51 million tons in 1940.
It is expected
that the current
expansion of the nation's generating

the past two years.
Demand and time deposits of busi¬
ness and individuals have risen and

which to date have been broken only

This

es¬
three

These

consumers.

Thursday,' January 22r 1953

suited in an increase in the stocks of-coal above
and a general softness in prices.
1'
~-

oc¬

and over

summer,
however, we have expe¬
rienced
severe
drought conditions

drought

75%—has
business, real

—

Holdings of government securities,
on

which

and

to

elapses account for more than fourfifths of all bank loans.

,

v.-

These

credit by businessmen and
brisk. Total loans made;
by all insured commercial banks exceed $82-. billion, an
increase of about $19 billion since the end of 1949. The

steel output will

our

demand

consumers

keep in mind is the growing steel

capacity in foreign lands.

SIENKIEWItX

President, Central-Peim National Bank, Philadelphia, Pa.

turned out

.

As
ume

to

we

raw

an

enter 1953, about

{Volume 177 -Number 5188.,. The Commercialund Financial Chronicle

arises from the sale * of products manufactured by

once

yields but has at the

same .time released manpower to
plants which have sprung ,.up through¬
out the area.
On the other hand, industry has
given
an increasing amonut of attention tothe
processing of
the region's agricultural
production, with the result that

the steel fabricating

companies we had acquired since
1949, . under Our .product diversification program and
which are ^now-Operating-as divisions of Pressed Steel

operate the

Car Company.
'

diversification

The company's

successful that

plan to

we

farm

program- has proven so

it further.

pursue

And it is

ever

\

fested

by'industrialists inthe

this

been

new

revival

of

It

and

who would like to

important

increasingly

contributions

the

have

been

balance

implementation

cess

the

course,

of

With
believe

and

farm

will

for

mechanization

has

not

a

can

as

done

whole,

a

of business

orders

Administration

new

is

certain economies

so

M. J.

great
for

to

that reduction

spending.
the

eration

SPANG, JR.

commitments

and

standing,

fact

the

out¬

now

that

about

$80 billion already appropriated have
not yet been1 placed, most analysts
expect the rate of defense spending
to increase during the year.
There is

with renewed confi¬

dustrial

a

healthy backlog of in¬
this

At

orders.

time

last

year, orders in the hands of U. S.
manufacturers represented four

new

months'

production. This year, most

estimates

the total commit¬
$75 billion, which is
equal to six months' output.
Renewed confidence on the part
of businessmen, arising from the Re^
publican victory, is an intangible not
place

ments at about

effort to live up to.
governmental over-plan¬

ning, the natural laws, such as that
of supply and demand, can again be¬
come operative for the greater nor¬
mal prosperity of the entire country.
Our government planned economy of
the recent past proved unsound, and
the people have rejected it.

changes

must begin with the outlook for Fed¬
Taking into consid-

forecast for 1953

sympathetic climate for business which I

our

activity during the.

by Federal govern¬
defense items, any

past few years has been supported
ment expenditures on military and

of

Instead of creating problems

business,

the high level of business

Since

do

will have under the in¬

1953

SPIEGEL, JR.

President, Spiegel, Inc.

so one

be overlooked.

to

in

the first

It should

months

six

until the Fall.

J.

Spang,

P,

'i.?

and will. probably
?: *r
.>/}'
>

B O S T O

N, Mass. — James M.
Burry has been added to the staff
of Chace, Whiteside, West & Winwith slow, Inc., 24 Federal St., mem¬

Ward has joined the staff of Ed¬
ward E. Mathews Co., 53 State

bers of the Boston Stock

carry

Eaton Products Serve

on

of Industries

At|nuj^<;turiitig ^Company is privi-

'"pHE LIST of customers which Eaton

leged to Serve includes the best-knowrt ahd> most respected names in

practically
Statement

of

as

December

31,

trucks, tractors, airplanes, Diesel engines, domestic appliances, machine

1952

tools, farm machinery, construction equipment. Every major railroad, public

RESOURCES

Cash and Due from Banks-United States- Bonds-—-'-

-

$ 81,852,170.55

a--

*

Loans

-

i

:

-

Banking; Premises Occupied
Customers' Liability under AcceptancesIncome Accrued Receivable and Prepaid Expense—
-

i

-——

Other

.

Resources

TOTAL

,

—

—-

which
of

LIABILITIES

Capital Stock {320,000 Shares)-,
I

$ 8,000,000.00

Surplus

Undivided

Profits

Total Capital Funds-

.

-

Reserve for Dividends, Interest, Taxes, etc.Liability under Acceptances
:

——»

*In

addition

State

EATON PRODUCTS—Sodium Cooled Valves

•

Poppet Valves

•

Valve Seat Inserts

Engine Parts

Cold

•

Hydraulic Yalve Utters

•

•

Tappets

•

Motor Truck Axles •

Gray Iron Castings • Rotor Pumps • Spring Lock Washers • Snap Rings
Wire

Drawn

Free Valves

•

Heater-Defroster Units

•

•

Stampincjs

Leaf and Coil Springs

•

*

Dynamatic Drives, Brakes, and Dynamometers

,

—

to

-

the

-

—

Loans

outstanding

and

of

Discounts

*

as

—

shown

we

of Ohio,

is

a

had

unused

Loan




Claim against the

Plants:

CLEVELAND

•

MASSILLON

MARSHALL

Assets

of the

Bank.

U R I

K G

C 0 M P A H-f

General Offices: CLEVELAND 10, OHIO

$302,422,425.60

$4,548,490.25,

Preferred

U F A C T

A N

37,567.65

-

-

**Includes $3,450,785.50 of Trust Money on
deposit in the Banking Depart¬
ment, ivhich under the provisions of the Banking Law, Section 710-165 of
the

<

quality of products

makes, and to this company's dependability as a source

7,936,468.99

Liabilities

Commitments

the

.

U. S. Government

•-

to

269,918,518.57

■•"•"Commercial, Bank and Savings

TOTAL

testimonial

a

supply.

$ 21,566,719.75
2,940,320.64
16,830.00

DEPOSITS:

Other

them is in itself

Jet

•

t

companies which demand the finest parts, equipment, and

serve

Eaton

Permanent Mold

10,500,000.00
3,066,719.75

-

—

are

materials. To

$302,422,425.60

—;

—-

utility, and communications system in some way uses Eaton products*
These

9,038,280.67
4,585,228.79
95,141,581.12
3,839,750.11
16,830.00
720,337.95
,124,539.48

:

and Discounts

\

107,103,656.93

.

State and Municipal Bonds.!
Other Bonds and Securities

basic industry—leading manufacturers of automobiles,

every

•

•

'

over

page

a

Wide Range

CINCINNATI, OHIO

-

%

There is-a shortage of employable labor in many com-munities, so that! seasonal fluctuations, can cause a slight

Jr.

Continued

Exchange.

:i-v

mho

(Special to The Financial Chronicle)

BOSTON, Mass.—John S. Wood-

.

to buoy the economy

serve

,

t

M. J. Spiegel, Jr.*

Chace, Whiteside Adds

(Special to The Financial Chronicle)

Street He was previously
Renyx, Field & Co., Inc.

means

more

we

Without

new

only contributed to larger

Joins E. E. Mathews

0,1

radical

Although there is some disagreement in the forecasts
consumer purchasing power in 1953, it seems probable
that there will be enough spendable income to absorb
the available meat supply at the price levels prevailing.
of

must make every

,

undergone

is indicated for '53.

government
will direct its energies to the solu¬
tion of those problems inherent to
an
expanding economy. This new
and favorable climate presents busi¬
ness with a stimulating challenge it

witnessed-a.: closer integration * of

have

also

face

dence.

to indicate what the developments

meth'dds

first

have

Tax,

will have less pork than we had .in 1952,
supply will be good compared to most previous years.
small increase in the per capita supply of total meat

A

coming Administration, I feel certain
business will react accordingly, and

industry'and agriculture in. this section;I;On ; the'one
Mnd,

Profits

standpoint, of < .volume*

the

taxes will be possible.

J. P.

tion of the rapid rise in the region's per capita income.
"That rise, which is continuing, shows the effect of the"
broadened base upon which the section's economy now

Recent years have

people

more

the

should be

Even though we

people

President, The Gillette Company

y'A striking factor in the growth of the Southeast is

payrolls in the Southeast.

that

"}

a fairly satisfactory
for the meat packing industry.
Although we anticipate a decrease
of 5 or 6% in the number of hogs
F. W. Specht
available for slaughter, there is ex¬
pected to be an offsetting increase,
of about 9% in the number of beef cattle over 1952.

econo¬

of

period. Hidesr

year

eral

its greatly expanded consumer market—a direct reflec¬

industry and agriculture have done in creating

lot

a

\

than meat.

From
1953

come.

something about taxes which,

trary, the growth that has occurred in the area's econ¬
omy has been of a well-balanced nature, and that trend
gives every promise of continuing.
As an example, one of the nation's fastest growing
industries im recent years has been the chemical in¬
dustry. Numerous new installations have been made,
&hd the Southeast has claimed a large number of them,
With bright prospects for still additional new plants as
that industry pursues its expansion program' and seeks
locations where its operations can be conducted most
successfully.

ifi

so

the

of

by

program, it is worthy of note that defense production
has not dominated the region's activities. On the con¬

serves

still

harm to business

defense

the

of

are

.

nonfood

value

have what they want and what they
need. High taxes, especially the Ex¬

to

made

there

,

tallow, wool and other by-products
liave declined even more sharply iht

buy some things
they do not have which means, of
course, that the business potential
is still very great and it is just a
matter of getting our economy in

R. E. Sommer

substantial

tests and also

to

the last two

becoming

to

wish to go.
me that most

we

field of

*

Southeast

as

seems

'

pattern.

below the 1947-49 base

Wire

mists do not give sufficient consid¬
eration to the increase in population

industry.
the

far

as

Southeast are basic.

:

products oflivestock.
Average wholesale meat prices, are

operating at full capacity and we are
booked for future business just about

we are

decades, there is a broad
opportunity for still further
development. The fundamental ad¬
vantages offered by the Southeast
are in no wise
diminished. A good
labor
supply possessed of a high
John W. Smith
degree of versatility, an equable cli¬
mate permitting lower building cost,
an expanding
power supply, excellent transportation,
and an infinite variety of raw materials, form a com¬

While

and

continue to have good business for some time to

Presently,

,

The Korean inflation which began.

Normally, we do not try to forecast the future; how¬
ever, I can see no reason why this country should not

ac¬

^

in 1950 has already disappeared from
the wholesale quotations for, meal

Company

Notwithstanding
the
tremendous
progress which the area has made in

is

seasonal

REUBEN E. SOMMEft

region

marked

a

SPECHT

a downward trend
except for some seasonal strength^
last summer.1 We have every hope that
prices will sta¬
bilize in 1953 and follow the usual

of growth and progress in.1953.

President & General Manager, Keystone Steel &

tivity
in
connection
with
some
projects which had been temporarily deferred.
The reasons for optimism in the
outlook for the

that

at

people of the Southeast, more keenly, aware than
section, are losing

another year

and, in
fact, within the last 60 days there

bination

than

stable

more

-

before of the potentials of their

to continue in

establishment of

in

enterprises

-

greater and
'

activity which prevailed in the

1952; is quite likely

has

is both

heading for

There has been no abatement of the interest mani¬

1953.

W

Despite the fact that our processing costs continued to
increase in 1952,
average prices of our products showed^

chance to further its development. That is a
healthy
:
sign and it constitutes one of the most important reasons
for the firm belief that the Southeast is

President, Seaboard Air: Line Railroad Company

Southeast during

F

President, Armour, and Company

;

no

JOHN W. SMITH

The level of business

income

The

expected that the results of the program will become
apparent this year and in ensuing years.

'

•

new

time in the past.

any

even more

*

(365)

DETROIT

VASSAR

•

*

SAGINAW

KENOSHA

•

•

BATTLE CREEK

LONDON, ONTARIO

•

IAWT0H

86

86

(366)

The Commercial and Financial Chronicle

Continued

from

in

decrease

page

and in

without
goods.

employment

the demand for

nomical

85

consumer

drastically

From

At this writing, it would appear that the new Admin¬
istration will keep price and wage controls on a "stand¬

the

for

time

the

reduces

being

danger

Putting

the whole picture together, it would appear
that 1953 will be as good a year as 1952—though most
economists are wary of definite predictions past the
At this time it

the

quarter will

that

fourth

sensible to

seems

electric

the

a

SPORN

industry

in

hazardous for

In any

ward

of

and

building

year

the

to

our

delivery

tinue to increase.

this basis for

will

higher levels in 1953,
specific prospects

or

because

Thus

our

have
Philip

pleted

not

1953.

segments

electric

In

in

till

the

will

the

also

be

continue

be

to

sold

at

combination of these factors adds
continuation of expansion of electric load.

a

up

to

Ehectrid: Company

and

kw.

one

early in thd

was

System

*

operations

going

now

gain
input

*£nergy
14.2%.

of

about

should

The effect

on

19.6

on

the

be

that

unfavorable

countered

the still

such

as

peaks

operating resuft^ standpoint
aspects
have
recently^ been en¬

essary

some

to

continue

to

light

the

raise

the

needed

excellent

and

new

that

this

will,

on

capital.

moderate

the

rate

year

favorable

good

fairly

our

to

avoid

a

nec¬

1953 will bring

in

the

of

the

adversity if it
future;

us

less

with it

the system

&

necessary.

number

•in

of other'

outlook

for

1952

was

of the

for

low

ease

up

relatively old equipment, primarily de¬
load

should not have to

use

factor
it for

peak
mass

situations,

and

we

production of energy.

The easing up of the strain
involved in carrying system
load with too low reserves will
offer opportunity to
concentrate more effort on
development of more eco¬




has

generation•

of

'

all

to

share

can

be

reflected

fall

at

the

Golden
as

I

Rule

see

of

of

are

the

improve

new

changing

ones.

current

}

We must

i

brands,

and

di¬

tastes

consumer

and

Kraft

our

Ga.,

opened

company

Atlanta,

near

a

giving

new

*

Kraft

.

Canada.
t'f

'

"
y
;

$230,000,000.

markets,

we

also

are

intensifying sales

«

public gathering places. >
Sealtest. companies are seeding to in- -'
through - automatic vending machines in !

our

and

the

Bill

of

brass

and

is

the

products

'

not

as

better,

industry.

that

good

a

in

the

year

are

will

be

freely

made that
good not only for

times

many
a

business

in

the

past,

unanimous opinion
outlook

•

has proved

to

justify accepting these
Lawrence F
rosy predictions without looking at
the whole picture!
*••--.» yv
we

can

are

a

Stern

.

number of reports

look forward to

a

high rate

industrial production. The steel industry looks
continuation of capacity production and does not
pect to be able to meet the high current demand
The automobile

and sell 5.256.000

shortage of steel.

for
ex¬

before;
produce,'

industry expects to

passenger cars this year

if there is

no

Sorre producers

old fashioned

some

admit this may take
selling efforts in the second half of

the year.

The utilities have important
programs of plant exmnthem not only for 1953 but for a few
years;*

sirn before
.

at. least,

not

beyond.

seem

year;
■i

W

S'einkrmi*
-

and

brass
•.

-

business

construction

soert

in

The market for electric appliances does
a saturation point and the
large

to have reached

replacement

as

copper

|

a

our

1953

of

of

supply and
out, there is

believe

are

some

.

too

the

The

straightened

justify

-of-busi^
" -

which indicate that

the

to

There

soared.

to

-On the constructive side there

an

availability

essential

four months ago businessmen

or

confidence

mid-year.
in

three

ness

however, when

-

condition

I

year of 1953,
especially in making forecasts for the second six months.:
With the election of General Eisenhower, and
especially
following the announcements of his
appointments to Cabinet posts, busi¬

unreliable

mill

as

generally quite cautious about the full

been

STEINKRAUS

copper

recently

were

the first half of the year but for the
whole year—if indeed not for the
next two or three years. There have

prosperous economy.

,

upon

every reason to
will be at least

products

1952

our

sales

business

it, this wil guarantee

If both the question of

if

satisfy

Decatur,

Forecasts

The

straightened out, for it

which
operations.
'*

1952,

must

we

well-established

nessmen.

need

we

face it with confidence.,

brought about by the arti¬
pricing of Chilean copper has

scrap,

price

and

,

t

,

had the effect of causing
uncertainty
in the minds of users.
It is hoped
that early in 1953 this market situ¬
ation

j

this enthusiasm but at this early date 5
much of it must be credited
to abetter feeling on the part

market

ficial

challenge of equal importance is
for swiftness, economy and con-

products, and create

tangible factors

greater than the supply

,

will be brought

opportunity to

signed

of

industry for 1953 hinges mainly on the outlook for
adequate supply of copper. Ti>e de¬
mand for copper alloys in
industry

up to a volume
close to the proper amount for
the first time since 1947.
This will give us an
on some

'

serious nature.

like prosperity,

comes,

steady, stable and

factgrs affecting operations on our svsjem.
;of copper.
bring on .the line in the course of
the,year,'
The
unsettled
than

on

As

President, Bridgeport Brass Company

600,000 kilowatts of new
"generating*
capacity and,-with only, slight improvement
in'per¬
formance on equipment
delivery, this amount will be
increased to 800,000 kilowatts.
As
a
result, reserve

margins

too

a

willingness

we can

live

We expect to
not

the

HERMAN W.

The

I

"

on

increases, which

|

i.i

and

consumers—now

LAWRENCE F. STERN

known experience and creation

More than all else,

more

new

President, American National Bank and Trust Company
'■
of Chicago, Chicago, 111.

I doubt the contention the

anything of

leadership,

Let

Rights.

& E
System, it is not
whole, offer too great

difficulty when, and if, it clearly becomes
The

But

history

the

crease

people; work for world peace; imple¬
more trade credo"; these should
obligations.
We can not maintain an

that every

used

With

crisis.

;

;

of the great

schools, factories, airports and military posts. Our Kraft ^
company is expanding further its institutional program to serve hotels, restaurants, cafeterias and
hospitals.

valleys of business activity will, not return,

sure

protect capital structure, and to be able to

industry in general in regard to
is most
certainly true on the AG
expected

steady

more

increases

in order

of

be

One

v.

American people and American tradition have met
every

continuing increases in the wage level. These
only a continuation of a long series of
Their cumulative effect
may make
additional applications for rate

and

not fear the

price of fuel and

of course,
such increases.
are,

will

an

the increase in the

demand

and

To widen

"less aid end

solemn

our

but feel

be} very helpful.

from

Another

lines, to

Several

Let everyone face the facts.

prices,
perhaps, from some significant improvements in
productivity of construction labor. The greater avail¬
ability of material and labor will also
true

is

,

efforts to reach institutions and

indefinite peak of continued manufacturing and business
as we
have known it, from cold wars and actual wars.

whole

and,

is

*

and less fortunate

The fight we have been
carrying on to counterbalance
effects of inflation should receive
material support in
1953 from more stabilized labor
and
material

It

seeking

'

of

in

ment the

quite favorable.

some

all

are

cow

Developments in promotion methods include several ]
innovations in packaging. In 1952, for example, a two- *
year program to
redesign our entire line of Sealtest y
products was completed. Kraft also has developed new *
packaging for several of its products, and our animal A
feeds line, produced by Consolidated Products
Company, .*
appears in new dress.
/.

do

all past years, the best in all of us is still
A better spirit and team play, to be accom¬
panied with tolerance and understanding, is getting un¬
der way.
How to maintain uninterrupted employment
and security; see that all is well with our incapacitated

„

these

reach

challenged.

corresponding system
billion kwh., a gain of

earnings should be

As

ness.

10V2%;

be

and

people of our great country, with hereditary tra¬
recently dictated their faith and determination
to put some new mariners on the ship. They don't know
how much brighter they made the sun for general busi¬

trial abnormality.

a

we

per

approximately
$22,000 000 in 1953 to provide for additional machinery,
refrigerated cabinets and regular replacements,
In addition, two new plants are being studied for consideration at a later date,
When put into effect, this
planning will bring our capital expenditures since the

The

token, system energy
projected at 18 billion kilowatt hours, will turn out to
be 17.1 billion.
The deviation is almost entirely due
to the loss in energy sales
during the periods of indus¬

kw.,

goal

production

trucks,

dition,

in the. .system.
By the
input fort 1952, originally

We in AG & E expect 1953 to be a year of substantial
load growth with the annual
peak registering a gain
of close to 300,000 kw. for a
system total of 3,200,000

the

-

in

record

branches in key centers of United States and
We are planning capital expenditures of

jQbs'and better living.

on

same

In

plant

every

believe

I

peak of 2,950,001} kw. The actual peak experienced was ^
2,900,000 kw. The difference in the figures is almost ♦*
entirely due to slipbacks in one or two industrial expan- 4
sion

*

cates of government competition with private enterprise;

expected

an

ex-

consumption is foreseen*
S. Department of Agri¬

National Dairy has built in recent years *
to these ends. Larger sales, greater
efficiency and econo¬
mies in operation have resulted from the
company's !
post-war development program.
Among new Sealtest plants recently opened are three ice cream units, a ■
milk plant and two combined milk and ice cream plants. "

possible way.
All this will mean more
income to Federal, state, city and town governments.
.Rernove the wraps. Our spokesmen we send to WashirigtOh must be the collaborators, not dictators and advo¬

>

j

scaled down to

versify

I know no

so much to maintain and
American standards and should be encour-

our

in

aged

hour peak for 1952 of 3,040.000

year

increase

•

to

end of World War II to

etc., could

dairy
to

increase

buying habits.

Venture capital, corporate funds for greater expansion,

replacements,

*

nation's

of

expected
An

ice
are

challenges
industry is to develop imaginative merchandising

promote, familiar

respect for each other.
*»

our

processes

big business—leave them

and promote harmony

restore

the

of

supply

is

1952.

With

of the

strive to

and

of

at

growing

the leadership, and

hope

20%

1953

U.

future.

wedge between management and workers breaks
faith of leadership. We must

a

down

a

originally

an

the

the

attempt of political demagogues in recent years to

drive

*

high

entirely to projections made approximately a year
ago, the deficiencies are not significant. And they are
fully explainable by; the effect on. production brought
about by the steel and coal strikes,
*Thus^n the AmerGas

milk

venience in food marketing.
To meet these. challenges

,

up

projected maximum

fluid

the

the boat. All this may seem foreign
the business future, but to me it. is of top importance.

The

new

to

of

methods

twice their weight in

be

to

While electric power-wise; 1952—the complete picture
for which is now almost entirely available—did not
come

ican

that

sumers.

corporation executives who shirk their duty to their fel¬
low men and who aren't getting old and infirm pulling

among

that

The

rate.

ceed

Milk, cheese,
dairy products

The

in

gross

and

- -

farm

young and growing custoNewly-married
couples and
their families face long lives as con-

private enterprise.
corporations accelerate their

alone, they'll- get along with their employees.

com¬

promises

assumption

Starrett

for

mers.

be done and needs to be done to

dium

projects

income

personal

population

which 'warrants

appliances

Other

will

1952

addition,
of

1953.

H.

A.

which

slipped back in their comple¬
in 1952 will definitely be

started

all

level

a

get

in

almost
at

projects

tion dates

Sporn

did

encouraging.
significant

and

expansion

completed
which

large

many

industrial

their

well

year the net is less and less,
something is definitely out of whack.
Business
organizations
have
been
penalized, like individuals, for doing
a good job.
Contrary to the claims of too many
that industry is tough and indifferent
to the welfare of workers, it has said
too little in self-defense. Little, me¬

is every indication that all the in¬
dices of business activity are likely to

but

around

dollar.

ervior

business through greater effi¬
ciency and hard work and at the end

con¬

thinking of what's

in electric p?wer are so

redirection of the
related in¬

many

Much

could

demand

levels, consumer
needs can be met by the
industry.
People are living longer than ever
before.
Meantime, a-boom in mar¬
riages and births has created a res-

discuss

to

continue

When

ahead in 1953 not only because there

stay at 1952

iood

by

current tempo throughout 1953.
can

We have accepted

our

taking

re-encourage

electric

of

any

program,

dustries

during the

consumers

food.
other

-

products

safe for the economist!

Barring

defense

of earnings. This is
premise that the de¬

and

energy

for

and

culture.

executive

business

1953.

the

up

tne

on

mand for electric service

billion
cream

event, I would predict a continued moderate up¬
of general business the first six months of

lar, in their programs of expansion, load building and
based

the

the

and

up

products continuing at high levels, the volume of busi¬
ness
done by
the food industry should- remain high
for
1953.
In
1952
Americans paid an estimated $63

*

trend

American Gas and Electric Company System in particu¬
the

income

STARRETT

business trends but how easy and

general,

personal

running

of consolidation of the activities

year

utility

managing utility enterprises

With

.

President, The L. S. Starrett Co.

President, American Gas & Electric Company
of

II.

A.

severe

How

1953 should be

accent will be on

protect their earnings and to build the solid founda¬

assume

not bring

changes
enough to affect the full year's results adversely.
PHILIP

investors' standpoint the

The new atmosphere in Wash¬
ington, which, it is hoped, will make possible the
working out of a number of the industry's problems
against the background of trust and confidence in the
ability of a private enterprise economy to operate in
the national interest and on a fiscally sound
basis,
should be of material help in this regard.

strikes

third quarter.

E. E. STEWART
President, National Dairy Products Corporation

tion of future expansion.

costly

of

the

the responsibility on those
to

by" basis, since the situation is fairly stable at this time.
The price structure seems to be well-balanced. The fact
that the unions have new leadership and must feel their
way

practices and- policies in design; construction,
operation, and in developing with greater vigor

the long-term load building program of the system.

affecting

Thursday, January 22, 1953

...

1952

also

adds

to

the

bright outicok.

industry where over $28 billion
some
improvement overall

looks for

the oil people expect at the worst to suffer

setback.

a

vns

thisj

minor

The rubber

companies a**e looking fcr a very
good year in tires and the railroads believe that if bo si 2

mill

Continued

cn

vage 88

Number 5188

Volume 177

...

The Commercial and Financial Chronicle

private borrowers, and this is Appointments to the Treasury such considerations the good¬
often cited to absolve the Fed¬ suggest a more realistic grasp ness of the record of the
year

Continued from first page

eral authorities from any re¬ of the true principles of tax¬ ahead will rest.
sponsibility for the more re¬ ation as well as the need for

We
See It

As

cent progress

depression

such

into

very

un¬

during this

year in these lat¬
ter tasks that 1953 will be, or

The

Plumer Joins Bache Co.

of inflation.

reducing outlays. All this be¬
is, though, that longs on the credit side of the
likely this year.
more
recently banks have ledger, and we, for our part,
should be, measured. Clearly,
added somewhat to their gov¬ are
definitely hopeful of
The "Test"
we now have a situation that
ernments,- and the Federal heartening results.
If we could be sure that presents
serious danger of Reserve
But there are other facets of
system, largely under
too much would not be read later trouble. Costs are high;
the domination of the Treas¬ this situation.
The new Ad¬
serious

(Special to Ths Financial Chronicle)

fact

COLUMBUS,
with Badhe
Street.

with ex-Presi¬

dent Truman that the real test

distortions
of

state

the

in

current

affairs

business

when defense activ¬ evident. Privately

are

held money

vestments

of the commercial of all

our

banks of

the country by the measure
purchase of governments, by possible

ity reaches its peak and be¬ supply—that is, the total of
pegging the
gins to decline. In our view, all bank deposits owned by ernment
however, the "test," when it private citizens or

will be less

comes,

of the

one

izations

(ex¬

institutions

and

"social
of
on

gains." What

economizing is
this basis is not

price of gov¬ clear. Farmers have been
obligations and by promised a place among the
their organ¬
refraining from raising the specially favored. Freer trade

efficacy of what is done then cluding interim deposits) and
to meet it than of what has currency in
circulation out¬

discount

rate.

The Treasury, is

a

must if

we

the bread lines

with

again. We still
the

us

forces which

have

ure,

has

been

downward

well

The
crease

same

is

It is likewise clear to

not

when

bulk

of

the

debt

us

Co., 5 West Broad

was

formerly

with

Paisley, Inc., for

many

as

Minot, Kendall Adds
(Special to The Financial Chronicle)

BOSTON, Mass.—George W.
Hemenway has been added to the
staff of
15

balanced budget or matters,

reduction.

and

It has asked sponse to his

Minot, Kendall & Co., Inc.,
Street, members of

Congress

the

Boston

Stock

Hemenway
F. L.

Exchange.

previously
Putnam & Co., Inc.
was

Mr.

with

With Gibbs & Co.

can

(Special to The Financial Chronicle)

WORCESTER,
A. Botticelli

what

our

with Gibbs &

He was pre¬

viously with H. L. Robbins & Co.,

With Fusz-Schmelzle
(Special to The Financial Chronicle)

re¬

Congress for higher taxes, but remain to be seen. They are
higher taxes would increase difficult to predict, but upon
monetization of rather than reduce the un¬

now

Inc.

and will

efforts will be,

is

is

Federal

Government.

Co.,

Boatmen's

members

Building,

Bank

the

of

Midwest

Stock..*

Exchange.

structure.

Eisenhower's Problems
These

and

other

related

These

ered almost irresistible force, ings

heavily increased hold¬ problems now fall upon the
of governments mostly shoulders of the new Admin¬
from
war
financing, istration and upon a Federal

speculative or reck¬ stem
activity threatens to lay which was designed to obtain Reserve Board which at times
a basis for them.
The way to funds with the least possible now gives indications of more
combat a depression is • pre¬ cost in interest to the govern¬ courageous action and a
dominantly to prevent the ment—the least possible cost greater understanding of the
growth of the untoward con¬ to the Treasury, regardless of true inwardness of its respon¬

but when
less

give later the heavy ultimate cost to the sibilities. A moderate increase
There was, in the discount rate was made
the instant general public.
case,
to eliminate them as however, after the close of last week, and such men as
promptly and as effectively World War II a decline in the
Messrs.
Burgess and Dodge
as circumstances permit.
holdings of governments and
moving to Washington.
It is by the success we have a rise in loans extended to are
ditions

trouble

:

w

—

hi

c

or,

h

in

%

IN THE SOUTHEAST'S

COASTAL PLAIN
THE BINGHAM - HERBR AND

CORPORATION

V
Jli

Toledo and Fremont, Ohio

Locate your next plant
on

a

COAST LINE site in the

Industrial Southeast
You will want to know
sites in

Manufacturers of automotive brake

lever

more

•..

about Coast Line

fully cooperative communities in the

midst of lands

producing

raw

materials, having

deep water facilities and adequate

assem¬

power

for

industries.

blies, precision

"Van-Chrome"

drop

and component parts




the

stampings, drop forgings,
forged

hand

only DOUBLE TRACK ROUTE between the East and Florida

ATLANTIC

tools

COAST LINE

for jet aircraft engines.

RAILROAD
WRITE: R. P. Jobb, Ass't. Vicfe

President

Atlantic Coast Line Railroad Co., Wilmington, N. C.

o

^

i;!**

ST. LOUIS, Mo.—Ann H. Dewes ~
now
with
Fusz-Schmelzle &/

national debt—that is to soundness of the current tax

the

,

Mass.—Vincent

Co., 507 Main Street.

do about all these and related

in¬

the expansion of deposits
(and currency) as the result of
that bank acquisition of obligations

they have gath¬

a

Mr. Eisenhower

has resulted from what

known

the

the time to circumvent them of

in reducing Federal
outlays and thus laying the
basis for

consequences say

again.

is

vast

What the Administration of

no

progress

Monetized Debt

upward,

as

the

the

very

i

general state of busi¬
ness.
We may be quite sure
that if left unheeded they will

as

a

again and substantial rise.

again and again in the past

have

B.

Ray

associated

years.

moreover,

and in practically all of eral Government has made

economic them there

caused wide fluctuations,

in

—

to reduce

are

has refused stead¬ foreign aid without untoward
fastly to ihis moment to make results—and the last time the
been done beforehand to be side banks—is now at an allany serious endeavor to get Republican party took office,
certain that, left to peaceful time high.
In no year since its enormous debt into
long- it certainly did nothing to free
and peace-expecting activity, 1933 has there been any sub¬
term form and in the hands of trade of man-made barriers.
we shall not find ourselves on stantial reduction in this fig¬
non-bank investors. The Fed¬
have

&

He

Freeman &

Ohio

become

a

ther and agree

come

has

Plumer

statement, we wages per unit of output are
appears
to be
ury has often aided and abet¬ ministration
should be inclined to go fur¬ excessive; and various other
ted the rise in loans and in¬ committed to a perpetuation

will

87

(367)

m

The Commercial and Financial Chronicle

(368)

Continued

from

million at the end of the last full year,

86

page

their freight loadings should improve
^jaough to help their earnings.
It has been said that arms spending will reach $53
is to be good

kbss

and will continue

in 1953

>; illion

on

a

Despite

There

expire

on

the

53-day

increase of 11%
cautions

June 30.

of

our

of

food

we

advance

to the fullest extent allowed

helpful again in 1953.

There are also such favorable
the development of new industries in the syn¬

as

detic and drug fields to mention two.
to be cautious.

•cl the bank

This year is the 20th anniversary

holiday and in this period we have had but

dip in business which occurred in the fall of 1937,
las the minor slip just before Korea. For the balance
we have
had conditions varying from satisfactory to
cne

y

Whether it is 1953

l/oom.
.^eems

likely that
The

ment.

National

recently reported

or

a

Months

the

that none of

tect

farmer will be reduced at least 5%. This will be reflected
ka the farm implement business and in other companies
whose customers are located largely in rural areas. We

industries losing money while others are
similar to the slump in textiles in the past
two years.
Exports will be lower as foreign buying
flower diminishes and those companies who receive a
see

some

ptrosperous,

£air amount of their income from such

will not

sources

he able to escape this impact.
In summary, while it seems

Et»ut business for

keep

the cracks that may develop

eye on

an

before

Business

will

STEWART

continue at about current
With defense spending reach¬

ing and maintaining a high plateau, the resulting pur¬
chasing power should provide adequate support for most
businesses during 1953.
The favor¬
able attitude of the

tion

towards

new

business

Administra¬
is

a

factor

which, while intangible, may never¬
theless be quite important. The tre¬
mendous production capacity exist¬
ing in this country will eventually
catch up with demand but it is
ques¬

labor

One of Canco's
continued

tinless

total

sales

should

equal

or

those of 1952, profits will in

probability be less due to rapidly
increasing costs. The major impact
of wage increases in the steel and
coal

industries, for example, will be

felt

in

proach
increases

1953.

Known

A

on

overseas

world

present rate of

statesmanlike

with

With

use.

our

importance

of

The

increasing

containers

should

above

more

1952

with confidence

American Can

if

to

are

expected

metal
us

a

and

fibre

whole

are

should

show

Company's sales

produce

than

industry has had to make

hard

to

will

960,000

expan¬
William

C.

Stolk

The program, begun in 1945, had cost $183.5

Back

1953

continue

at

1952

in

mate

gains
terms

modest

a

4%,

our

served

mean

than any¬

'

-

Corporation

by

Gen¬

Corporation
esti¬

have

we

business,

at

about the

users

above

of

levels

the

are

levels

expected to be

of

ulti¬

sales to

few

a

percentage points less than the

cor¬

responding

1950

gain

cf

1951

over

1952

of

sumes

over
some

1951.

This

gain

outlook

stretching-out of

as¬

gov¬

ernment
spending
and
no
such
spending influenced by a "hot war."

United

We

see

ness

A. F. Tegen

serious recession of busi¬

no

in the

offing at this time.

increase

J. K.

in

a

THOMPSON

President, Union Bank of Commerce, Cleveland, O.

total demand in

Despite

were

some

1953, also. The
good 1952 results were obtained in spite of the long steel
strike, various hampering controls, and extremely bur¬
densome taxes.

80% higher

as

recent

very

even

tinuance of

excess

producing capacity

of

while

me

that

off

program

employment
have

spend
will

will

in

at

1952,

by
the

a

con¬

not

,

they

substantial

a

and

that

the

people

substantial

and

that

their

resultant

generally

amounts '

to-

expenditures

keep production going at

rate during 1953.
The 1953 picture should be

Thompson

a

I think with the continuance

this

will

these

they did

level

figure.

sum

a

high

helped

general feeling of confidence in
new

believe

national

that

there

Administration.
is

a

general

I

ex¬

pectation that good judgment will be
used

in

the

from

an

economic and political

consideration

of

the

world situation, both
standpoint.
The dollar is not likely to depreciate in value
in the
next few years as it has in the past several
years. I think
there is a good chance of it
leveling off at its present

was

Obviously, if the safety margin is
production

as

should

barrels

to be increased at the same time demand for

to

heavy defense expendi¬

and,

increase

In 1952,

enormous

seems

Korean situation there will be

as

large capital invest¬

this

It

regardless of the developments in the

1941, and 34%

period

soft spots, general business in 1952 has

been good and I think it will be good in

tures

announced

2,000,000 barrels.

more

Utilities

but very close to the percentage

per day, and this was regarded as a
safe working margin. Today it is urged by some au¬
thorities that from the standpoint of national
security
the margin of unused crude
capacity should be close

to

This will

studies foresee

capacities in all its divisions.

1941,

next

gradual improvement.

a

Public

of kwh

substantiate fears that

in

We

trained

field

A. F. TEGEN

subsidiaries
that

centage

pro¬

duction.

to

Utilities

example, capital expenditures for the industry as
whole exceeded $3 billion, and according to plans

is

I

territory

In order to meet all the requirement for its
products,

been

better

the

in

least
through the first six to nine months,

higher than 1952. Perhaps the
magnitude of these figures can best
be appreciated when it is realized

have

expansion.

and

more

rapid rise in interest rates, I believe

General

Public

mated

be possible to reduce capital inves1ments by any substantial amount. For example, crude
oil producing capacity in the United States is
currently
about 900.000 barrels per day in excess of actual

modernization




the

eral

6.7%

ments to increase

for

room

have

underwriters

forward

time when it will

erally during the coming year, since
industry touches a major part
•ef the country's industries in one
*vay or another.

next year.

look

can

capital expendi¬
tures, which have been made in recent years or which
are
planned for the future, will result in burdensome
excess
capacities. Tn fact, it is difficult to foresee the

con¬

program,
started just after World War II, will
«®me into full use for the first time

not expect a

can

In

areas—

1953 could average as high as
7,793,000 barrels per day, which would be

the

has

interest returns on life insurance funds are
lower than they were 20 years ago. While

President,

Total demand for

the possibility that

higher
,1°47.

out-^

States

sources predict that 1953 may

the range of

It

increased

plant

40%

will be exceeded in 1953.

ear

broad-scale

years,

milk

States averaged about 7,303,000 bar¬
rels per day in 1952, an increase of
3.9% above 1951, Whereas many in¬

Jr.

some

we

output and produc¬
capacity, and it now appears that demands for the
industry's products will require still higher rates of

also

much

will

have had in recent years.

we

about
we

tive

dustry

insurance

United

1952, absent strikes or equivalent in¬
terruption of production.
The per¬

the

*

the

What the life insurance business needs

The year 1952 was one of further
gains for the petro¬
leum industry with respect to both

in

the

in

thing else right now is an increase in interest rates. Due
to the fiscal policy the government has maintained for

HENDERSON SUPPLEE, JR.

a

is a good indication of
the prospects for the
economy gen¬

and

dis¬

Fla., early in 1953.

products

the
very

sales.

more

(GPU)

petroleum

in

are

^

than

year

at

its ninth fibre milk container plant at
Portland, Ore., last summer and the tenth is scheduled
for formal
opening at Tampa,

Suppiee,

Sweeney

life

Canco opened

which

The

tainer sales

Calico's

is
r. E.

the container-making

operation in 1953.

1953

approx¬

at retail in urban

produced by

for

business

past ten years. Re¬
gardless of this fact, however, there

record-breaking

containers—which represent

in

doubled

for

JBales

sion

fibre

prospects

by the fact that life

industry in 1952.

H.

industry

during the year.
This anticipated increase in

of

use

A

than the prewar year

can-making

container

the

1953.

that 1952 demands

go as high

removed.

in

the

insurance

standing

supply strongly emphasizes the
ways to manufacture

toward

that

life

becoming more conscious of the
value of life insurance, as evidenced

developing

continue

to be

a

applies remain adequate and if gov¬
ernment controls

should

sources

insurance companies
have talked recently,

I

are

barely

years

life

whom

field

own

I think 1952 w;ill show a
gain in the ownership of life
insurance policies. American citizens

materials.

considered

are

If Far East

imately 35% of the milk sold

cus¬

generally

likely to

tin

trend

8 billion fibre milk

ap¬

The third straight year of
record-breaking sales an¬
ticipated for our company in 1953 is a "good barometer"
•off what may happen to American
business

10%

tin

other

our

and from executives

bright.

■

WILLIAM C. STOLK

.Skid rentals are

of

from

record

States from

of container

received

with

containers entirely from materials available on the North
American continent and motivates the intensive
program
we have undertaken in this direction.

President, American Can Company

during the New Year.

of

about six years.

improved equipment currently going

service, we can look forward
-satisfactory year ahead.

have

behind the Iron Curtain, the free world's remain¬
ing known supply in Africa and Bolivia would be cut to

the

and

much

projects will be
the development of a

the United

sources

SWEENEY

given to making predictions. I will
however, that at this time, according to reports I

1953

on

free

E.

representatives,

appear

the

slrlines have enjoyed for the
past year.

to

deposits

average business—namely, more and more
people are
.shifting over to our form of transportation;: This is due
large part to the outstanding safety recbrd which the

tomers

research

effort

an

part of labor could
prevent further
and permit leveling off of
costs with consequent benefits to the
country as a whole.
In the air transport field we have one
advantage over
on

not

am

partially

President, The Atlantic Refining Company

all

•Sidney A. Stewart

in

important

adequate to supply the world for another 36

tionable whether this will have much
While

I
say,

share.

a common

most

extensive

can

dependence

effect before the end of 1953.
exceed

ROBERT

affecting the earnings picture included
increases, caused bv delay in the steel
negotiations, and increases in the price of tinplate

This threat to

probably

levels for the next year.

37 cents

of

-

President, The State Life Insurance
Company

resulting from the steel negotiations, neither of which
could be absorbed in increased prices of cans.
It was
not until September that we were able to increase our
prices about 4%.

vital

SIDNEY A.

start

etxraordinary precautions we took to pro¬
customers—and the general public—against pos¬
ill-effects of the steel strike cost Canco at least
or

obsolescent.

or

branch

branches

Other factors

committing for the second half of 1953.

President, Chicago and Southern Air Lines, Inc.

matched by record earnings,

be

1954,

or

II, in part because

retroactive wage

its

quite safe to be hopeful
period of six months, it will be well

a

the

at

1953

meet

the industry, replace¬
additions to facilities have lagged somewhat

other

our

$4,000,000,

competition that will be difficult for small businesses

improvement is expected.
Farm
a^sices continue downward and the buying power of the

hand

on

nomical use of plate in
many instances when normal
plate deliveries were halted.
Like a majority of industrial firms in 1952 our record

sible

business

inventory

to

both
during and since World
of material shortages and also
because capital requirements for the
production, trans¬
portation and refinery divisions were
more urgent.
In
1953, however, many oil companies will increase
capital
outlays for distribution facilities to the
highest levels
in their history.

the strike the fact that more than 2,200 metal-plate
specifications—or combinations of size, gauge and coat¬
ings—are needed for normal production caused uneco¬

because the

jfvith narrow margins of profit. The mail order catalogs
-Bhow many cuts in prices which do not occur when a

record

be more than suf¬

requirements in

inadequate

marketing

of

Purchasing Agents

its members expected

Many businessmen expect 1953 to be a year of severe

liball

the

the

War

by government regulations.
Coating, decorating and cutting operations ran at full
speed during normally slack months, Extra warehouse
space was leased for storage of plain and processed plate.
Despite

higher

be

currently marginal

In

materials

raw

meet

well

ments and

began, the company made
its history in inventories of

products, work in progress, and

in the United
by 60% since 1941, refinery runs
by about 80%. Additional capacity now

demands which
be forecast for
say 1957 or 1958. Here again, con¬
tinued expenditures will be needed
to increase refinery
capacity for the future as well as to
replace equipment
which is

strike

the

discover and

possible.

increased

to

may

behind

largest investment in

sales will not

%1'iat 1.953 would be better than 1952,

*r<ibstantial

before

two from now, it
period of readjust¬

year or

are close to a
Association of

we

the

the effort to

can

container commitments.

On the other side of the picture, historically there are
xeasons

but

no customer lost a pound
company's failure to fulfill its

finished

of

in

building but not yet in operation will

preparations,

because

has

ficient

the like period in 1951.
was made possible by the pre¬
took in advance of the strike. As a result

precedented population growth in the country will
factors

which

summer,

over

that President Eisenhower will be
snore successful in curbing
labor strife, that his peace
efforts will produce satisfactory results and that the
from emphasis on war orders to civilian production
take ud any slack which might develop.
The un¬
be

last

This increase in sales

hopes

are

strike

steel

the

off

relaxation

no

new crude sources is

Similarly, although refinery capacity

States

industry's tinplate supplies at the height
the canning season, the company's sales and rentals
for the first nine months of 1952 were $478.3 million, an

chance that the Excess Profits

even

have increased

shut

Then, too, accumulated savings are at
a
record level of $283 billion.
Business expects lower
Saxes and probably will get some. There seems at this
better than

replacements at other plants.

growing,

develop

of

Friending power.

a

is

plateau to 1955.

Wage boosts which came in 1952—not to mention those
*\>hich will come this year—added $7 billion to current

*£ax will be allowed to

1951. The total
probably will have exceeded $250 million by the end of
1953 with the completion of new manufacturing plants
at Lemoyne, Pa., and
Plymouth, Fla., and expansions and

Thursday, January 22, 1953

...

value.
.

,

.

i

.

It is entirely likely that the Excess Profits Tax will
be
allowed to

expire in June, 1953, and there may be in

)

yolume 177

addition

a

Number 5188... The Commercial and Financial Chronicle

slight reduction in the corporate tax rate and

reduction in individual tax rates.

Bome

ARNULF UELAND

in the spending and earning stream.

President, Midland National Bank of Minneapolis, Minn.
For another year

experienced

It should also have

both

helpful effect on the prices of things corporations, the
government, and the individual buy. It is, of course,
important for the government to have a balanced budget
a

and it may be possible to accomplish this and

reductions, also, in the government's fiscal
'

ending

realistic handling of government debt matters since the
so-called Treasury-Federal Reserve accord in 1951. I do
not think that business can continue for an indefinite

period at its present high rate, but I do believe that it
will continue at approximately the 1952 rate
during the
year 1953, and that the banks will be in a position to,
and will do an adequate financing
job for all worthwhile
business purposes.

MILTON TOOTLE
President, The Tootle-Lacy Nal'l Bank, St. Joseph, Mo.
main industry and frankly we

are

concerned

about prospects for 1953.
Due to bountiful
cash crops of wheat and corn in 1952, many of our ac¬
counts are in good shape and were in a
position to

liquidate their current indebtedness.
However, farmers who depend prin¬
cipally on feeding or raising cattle
the

sharp

break in the livestock
We believe that prices will

market.
even

be

lower

toward

1953, particularly

the

end

of

finished cattle.

on

The drouth has been serious.

Al¬

though recent rains and snows have
helped conditions a great deal, we
still

feel

that

especially in Kansas

the winter wheat has suffered dam¬
ages

x,

loan

deal

much

as

40%.

as

This

principally through

our corre-

spondent banks. In

,.~iJ

portfolios

to

situation could improve with very
favorable spring weather conditions.
In making loans on livestock we

Milton Tootle

t

up

are

many cases their
higher than normal which indicates

that they might not be in

a

position to properly

expected needs of their farm accounts.

serve

In this connec¬

tion

we feel
that many of the current obligations of
farmers should be refinanced in
long-term debts, such

as

we

are

anticipating

the

same

WARREN B. UNBEHEND

Syracuse, N. Y.
Our national economy has become so allied with poli?3cal activities that a change in the Administration brings

about
tern

quandary

a

taking

over

stands

as

in 1953.
out

in

to the procedure of the new parly
Fundamentally, the two-party syn~

our

progress

as

exemplified by this last election. In
general, the continuation of war, it
is believed in
for

continued

quarters, augurs
inflation, or in case

some

of peace, deflation (recession). Here
we must pause to consider many fac¬
tors

available

cedure

in

for

constructive pro¬

the

event of peace, such
the preservation of our youth in
this country, giving them an oppor¬
as

tunity to progress rather than be
stymied by war.
Apparently our
economic advance

can

be continued

by the use of atomic energy in the
manufacture of peacetime goods.
Let us not forget that the new

Warren B. Unbchei^t

methods

administrators have divers

to assist in the control of our economy.

items

making more money available; (2)
can

construction may be almost as large as in
tural prospects seem more uncertain as a

(possibility is that United States may increase its official
price from $35 to $52.50 per ounce to aid on a lend lease
basis); (3) relief on taxes may be deferred until the
new administrators can determine the extent to whick

those

1953

surprises, and probably have
petition than for

some

more

as

a

means

Business activity

during the year 1953 will continue
Recent forecasts and studies made Jar
business leaders and their corporations emphasize tpL
The most significant factor for high level business a©~
at

a

high level.

tivity is that current plans of private business and go-£~
agencies call for new construction and new
equipment purchases close to the record breaking 1952*
totals. This is important since it has been indicated bgp
many that the heavy-goods industry would be the weak:
spot in the business activity for 1953 and would seriously
offset many segments of the economy.

ernment

Individual

savings and employment should contfrme

high levels and will be substantial factors in main¬
taining a high level of prosperity during 1953. A reduc¬
tion of internal government expenditures to balance the?
budget without impairing the defense effort should not
reduce business activity, but should strengthen it and!
tend to increase the value of the dollar. A balanced!
at

problems and

budget is essential to our economy.

good, vigorous com¬

If this can be dox^e

Continued

BRIDGEPORT BRASS

Road to Serfdom Blocked
new

products and new industries intelligence and the experience of
and constantly expands demand. those who share the burden of
Technological progress will in¬ administration with him. And for
at

accelerated rate

an

that

if he felt he should
the years pass by, thus under¬ make the
necessary personal sac¬
writing economic progress in rifice and readjustment, it was his
terms of increased employment,
duty, I thought, to accept the in¬
higher standards of: living and re¬ vitation. I added that we in Gen¬
sulting social gains; Let us, there¬ eral Motors would do everything
fore, prepare in the; adjustment we properly could to contribute to
as

.

years of 1954 and 1955 for what
is sure to come. It is only a ques¬
tion. of timing. And let us not for¬

ernment

President-elect Eisenhower to
the

ter

Cabinet

Defense, he

was

en¬

Secretary of
good enough to

as

CO.

H;

'

4

A '/n< '
'ji

mention this incident because

I

consider

we

When Mr. Wilson discussed with
me the offer he had received from

"Bridgeport"

that end.

of its more general significance. I
get that business spending is the
have been informed that over 650
most potent force in economic ac¬
positions of responsibility must be
tivity. Let us uphold and support
filled by the incoming Adminis¬
the efforts of our national admin¬
istration. General Motors is tration, and each is equivalent in
responsibility to the top executive
thinking in just those terms.
position of a large industrial en¬
Business Leadership in Govterprise. That being the case, when
1

BRASS

reason,

and

the

need

of

i

i

oil

second

nitude of what is wanted and what

should
Of

accept

course

the

was a

per¬

from

within the

activities

sonal decision. One he alone could

sented

make.

here before

fact

groups elsewhere. It
we of business and

But I reminded him of the
that the difference between

"mess" such

as we have recently
about, and efficiency, as
we, know it in industry, is a mat¬
ter of the people concerned. That
irrespective of the high standard
Of leadership that we may expect
from President-elect Eisenhower,
a

learned

the

success

of failure of his Ad¬

ministration with all of its impli¬
cations must necessarily depend

importantly

upon

make

by

no

you

HAS

me.

more

tion to the

repre¬

gentlemen

-

1151
.

.

.

ITS

right

BEEN

SERVING

ITS CUSTOMERS,

COMMUNITY, AND ITS COUNTRY,

And from similar

FOR THE PAST

is clear that
industry

EIGHTY-EIGHT YEARS.

can

effective contribu¬

success

of the new Ad¬

ministration and the preservation
of the American way of life than
to extend the maximum coopera¬
tion of experienced, talented and

imaginative executives of demon¬
ability to share the enor¬

strated
mous

executive

burden

the competence, National Administration.




1865

The reservoir which must sup¬

ply this demand embraces, to a
responsibility. large extent, personnel coming

I told him it

i

THIS INDEPENDENT BRASS COMPANY

must find.

ask my advice as to whether he
.

'/(

PIONEERS IN A GREAT INDUSTRY

personnel as
well, we begin to realize the mag¬
we

»:

v,i

echelon

third

•

ij-r;

■•.it*

of

our

BRIDGEPORT
BRIDGEPORT
Milk of

BRASS

COMPANY.

tridgaport, Conntclicuf, and

problem®

be progressively curtailed.
excess profits tax will be elufJ—

can

Thus present circum¬

time past.

the price of gpM

of solving financial

It appears that the
nated in 1953.

but it is also

will present plenty of

be raised

expenditures

The outlook is good

willing to get out and work,

as:

Continued from page 15

crease

There are §ue!s.

(1) the reduction of required bank reserves*,

ment's

certain that

mild recession in business for 1953.

^

President, Lincoln National Bank and Trust Company^'

Looking ahead into the New Year it seems probable
that there will be no sharp curtailment in the govern¬

for

a

during:

time the

a

living and cost-of-doing-business.

mortgage debts, which could relieve this situation.
Because of the somewhat unfavorable conditions ex¬

isting in the agricultural picture,

At

spending for defense and that expenditures for
1952. Agricul¬
result of lessthan-normal reserves of moisture over very wide areas
and apparent surpluses in some farm products. There
is no way of predicting either future crops or farm prices
but a decline in farm purchasing power, if it should
come, would surely have some adverse effect not only
on agriculture but on business and the economy gener¬
ally. Special strengthening factors in this area of the
country are the important developments in oil in the
Williston Basin; in taconite in Northern Minnesota; and
the longer range prospect for important economic use of
North Dakota's lignite.
The result of the national election, and the appoint¬
ments already announced by the incoming Administra¬
tion, have contributed to a restored confidence in future
governmental policy. A balanced Federal budget, with
some reduction both in government spending and taxes,
seems in prospect, and this contributes to a general feel¬
ing that inflationary forces are at last to be brought
under control and that there is now in sight an end to
the long record of steadily mounting taxes and cost-of-

in many cases in trouble due to

are

agriculture and business.

level of employment, productivity and prosperity
the New Year.

problem that cannot be
ignored. During 1952 this high level
of business activity was based on the
government's defense program and
on a large volume of plant and ma¬
chinery expansion and moderniza¬
tion and housing construction. Retail
sales set a new high mark—yet sav¬
ings increased substantially. Unem¬
ployment reached the lowest point
since the war, wages were high, and
disposable personal income reached
a new peak.
The demand for bank
credit was very strong and the vol¬
ume
of
outstanding
bank
loans
mounted in many areas to the high¬
Arnulf Ueland
est point in history.
Under these
circumstances, it is unfortunate that
the Federal Government added to other inflationary
forces by following a policy of deficit financing through¬
out the year.
Sales volume was high, and the market
demand and prices for almost all goods and services
have continued generally
strong, except for certain
metals and agricultural products, partly dependent on
foreign markets, where prices have fallen materially.

The banks generally have had a good
year in 1952, and
they have helped industry to do its defense production
job. Adequate credit has been available for all worth¬
while purposes and interest rates have been somewhat
better than in previous years due in part to the law of
supply and demand and in part to the somewhat more

our

this area and the entire country has
high level of production and prosperity in

intensified

tax

some

year

a

an opportunity and a new challenge
for all segments of business and agriculture if they
to do their part to maintain and expand the present high*

continued increases in operating expenses and taxes of
both farmers and businessmen has

June 30, 1954.

Agriculture is

stances present both

Such reductions

would be helpful in restoring natural incentives to cor¬
porations and individuals to earn more and it would give
both corporations and individuals more money to utilize

,

(369)

BRIDGEPORT

2.

BRASS

CONN.

•

ESTABLISHED

1145

Ipdionapalit, Indiana • In Canada: Haranda Coppat and Brau Lim'riad, Montreal

on

page

9®

90

The Commercial and Financial Chronicle... Thursday,

(370)

Continued

from

during 1953,

Changes

our

rapidly these days—often
is going on. The sig¬
just sit idly by with

place

taking

are

aware of what
that we cannot

before many

are
nificance here is

j

taken which

for many years.

economy

standards

caution, lenders should be alert for chang¬
ing conditions which may be indicated on the local level.
Any serious reduction in employment might especially
affect collections of retail accounts and consumer credit
loans
which have soared to important heights, thus

fore,' that

a

setting off

chain reaction which would have an unfa¬

a

vorable result

The

1953

all business activity.

on

for

outlook

with

Syracuse

has grown as much as
five of New York State's largest
area

cuse

diversified
the Syra¬

its

cities outside of New

continue and
bring with it excellent opportunities for Syracuse busi¬
and its citizens.

ness

to

know

available

as

a

has been one of progress for the entire
Gradually we are getting under¬
way the gigantic defense production job which has been
assigned to the auto makers, and we are moving toward
a
more
competitive car and truck
The past year

materials

as

into freer

come

supply.

ficial

elimination

the

cotrols,

of

arti¬

all

permit

and

will

1953

that

hopeful

are

witness

Electric

Wisconsin

aries

four

pears

have
the

the

the

full

This
will

trend

The

of

current

market

for

mula is subject to too

automobiles,

In
the

porarily affect the market.
confidence

from

time

with whether the
two years

two

or

to

new

stimulus

real

should

million

above

passenger

the

4.3

car

million

million

is,

in

itself,

sales

units
1953

matter

a

pro¬

is

of

in

5V2

little

the average, it will be sufficient to

for Studebaker
second century.

ahead into its

more

previous year in

any

passenger
our

we

cars

are

and

history.

that

so

international

an

-.

The threat of socialization of medi¬

cine

has

been

reduced,

removed.

controls

Such

are

Volwiler

H.

Ernest

merely

red tape, because keen competition in our
generally below the estab¬
ceilings.
•"
There is good reason to believe that 1953 will be a

unnecessary

field

has

kept drug prices

lished

of further growth for the drug industry.
%11

'

.

*

*

"

'

CLOUD WAMPLER

*

President, Carrier Corporation
'

'

Air-conditioning is entering upon its period of greatest
growth and 1953 should prove to be the industry's big¬
gest yfear to date by a substantial margin. Total sales of
the industry on a retail basis, which reached $1 billion
i<-'
-v
:
lor the first time in 1951, are esti¬
mated to be: about-$1% billion for
1952.
There is every: indication that
if present
general business condi''
tions

the

use

further

and

being made to provide
good medical care for all.
Price
controls on drug products should be
is

progress

.

future,

to

Federal

reduced

removal
of the
Excess
Profits Tax, and eventual lowering
of general taxes are important and
encouraging factors for this year.

thistrend

continue

maintained

■

and

will

be

perhaps accelerated

in 1953.

\ . :
the air conditioning
industry during the new year should
be at record levels, profits probably
will not increase equally due to1 ris¬
ing production costs, increased com-petition and lower profit margins
While sales by

long as the
crisis exists,
actively

continue

must

preparedness

present

Thus
rent
W. G. Vollmer

it

program.

reasonable

seems

that

sume

the

to

volume

vast

production

will

be

of

as¬

earnings

and

It

maintained

perhaps net—

defense business.

on

cur¬

now

1950's

■

throughout 1953. If this materializes,
gross

for

decade
Cloud

Wampler

ahead

probqble that the
great
growth
industry.
Looking

seems

will

10

the

be
our

1953, such as international tension—
taxes—wages—defense spending—capital expenditures

I predict that total
public will reach the
$5 billion mark by 1962. In the past five years there
has been a tremendous forward surge with respect to
air conditioning of commercial buildings.
This can be
expected to continue, since almost no new, modern

—material shortages—work stoppages.

office

There

—

favorably with 1952.

may compare

of

are,

course,

sales

i

unpredictable political
materially affect the

many

economic factors which could

and

of events in

course

of

Each

these

is

factors

Individually

important

to

national

our

collectively they can change
quickly and drastically the whole course of business.
But again in the light of present international condi¬
tions, it does not seem likely that there will be any
material changes in these basic economic and political
factors.' '
economy.

or

Whatever affects the national economy obviously has
direct bearing upon the financial

roads.

Production controls permitting,

prepared to build and to sell
trucks than in

moves

the

do ;is

can

know

nation

its

a

of continued growth*

a year

enterprise

our

as

slits,,

no

of

prospects

spending,

This is obvious.

maintain

healthy and profitable automobile industry.

are

forecast

to

we

do

present

permit the renewed

whether the market in

We are looking forward to

^

to

The market will vary from year to year,

consequence.
on

But

4%

or

competition,

rise well

1952.

particularly if the defense
as

trying
best

our

buyer replaces his car every

is such

program

of

duced in

a

do

more.

production

but,

to

dustry generally will be operating.
The

.

for¬

decides to postpone the outlay for a year

or

With sound conditions, and

1953

which has much

time,

car

such

proved political climate in which in¬

light and trend of present conditions.

development

Any

There

future:

im¬

the

is

factors

experiences of the past, aided by the

imponderables which tem¬
One is. the state of public

many

the

Among

next year.

recur

favorable

;

may

peepholds - in it to give- us
inkling of what the future holds.

Many estimates have
been
made, based on a variety of reasonings, but I believe
there is no precise formula that will establish what is
normal

biotics, will
the

.

or

ket."

the

volume

from

some observers like
"normal automobile mar¬

a

1952, particularly the precipitous
declines of some of the anti¬

and

political

business

We

long-a;waited

the

price

year

VOLLMER

economic events
continue at the
present high level throughout mOsb—if not all—of 1953.
No one can make this a positive' prediction.
For no
one
can
see
what lies beyond the
curtain which separates the present
that

indicates

bring what

call

to

H. 3. Vance

G.

W

of

that

improved products. It seems unlikely
unsettling occurrences

and

new

some

President, The Texas and Pacific Railway Company

sell.

can

of

in 1953.

business

of

he

1954, and early planning
required. In giving

ending in

years

World War II, it ap¬
that each manufacturer will
the opportunity
to build all

cars

Company and its subsidi¬
$100,000,000 expansion program

a

for further expansion appears to be

this entire in¬
For the first time since the

beginning

may

Laboratories

The drug industry can look to 1953 with real optimism
for further growth. No other industry of which I know
has greater opportunities for the continual development

Power

in

engaged

are

the

for

development of

dustry.

country

utilities.

interplay of our system of free en¬
terprise in the further stimulation
and

this

of

confidently continue to invest in the securities of local

industry.

market

citizens

Ihe

which

under

privilege to carry on a public service business
people, through the state, have also given us the
responsibility always to be ready to serve them well
and
adequately.
We will look forward to continued
confidence of investors to make this possible and good

The Studebaker Corporation

We

E. H. VOLWILER
President and General Manager, Abbott

of

the

Chairman of the Board and President,

automobile

power

more

home and on the

that the necessary capital will be
result of national policies and local reg¬

portance

us

S. VANCE

H.

to

directly

more

the utility industry be encouraged further
to enlarge its power facilities to meet the continually
growing demands in industry, commerce, on the farm
and in the home.
In this connection it is of prime im¬

the combined total of

It appears that this growth will

York City.

this

power,

enterprise it is important, there¬

In the rebirth of free

ulation

industry is excellent. During the past ten years

traceable

are

worker and more power in the
than to any other one cause.

per

optimistic outlook but must constantly watch for
general business changes that may envision unfavorable
this

As

socialized

to

stands to¬
day as spearhead in the fight for free enterprise.
Increased productivity over the years has stemmed
from increased electric power. Improvements in living

farm

trends.

road

industry has shown remarkable vitality and

forward step will have been

a

stabilize

can

the

down

competition

89

page

1953

January 22,

They

are

of

the

structure

of

that economy.

1952, the railroad industry probably will have one
of its best years from the standpoint of gross and net
revenues.

This is encouraging.

capital investment

on

still

But
far

is

even

so,

the return

that

below

of

other

they have for

many

apartment house of large size,

or

establishments

commercial

And in

also, the market is

far from saturated.

Use

air

of

conditioning in production plants,

which

brought about the birth of the industry and provides its
basic

market, will continue to grow in importance be¬

yond its tremendous expansion during recent war years.
Room

conditioner

air

growth-' amounted
the

In

building, hotel

the

to

being constructed without air conditioning.

smaller

welfare of the rail¬

integral part

an

is

years,,

industry in

sales,

about

to

1952,

major

another

400,000

units at

gain of about

a

area

retail

100%

of
for

the

over

preceding; year.For 1953, we anticipate a further in¬
crease

of

in sales to

Carrier

conditioners

air

room

than 475,000 units.

more

Corporation,

.

our.

is

production

double that

of

In the

case

schedules
1952

and

for
this

basic industries.

G.

W.

Van

DERZEE

may

What the railroads need

President, Wisconsin Electric Power Company
The

best

thing business

can

do to help

country,
its government and itself is to continue to
provide more
and better goods and services to be
enjoyed by more
and more people.
Doing that has made our country
grow and its citizens prosper.
With
enlightened self-control under sen¬
sible

legislation, business

forward

to

can

and

newer

The

standard

best

ernment

thing

our

do

can

of

is

healthy climate for
—setting
standards
structive

laws,

living.
Federal
to

press

its

ple directly only what they
as

The

well

result

election

has

of

the

recent

encouraged

trend

toward

point.

a

need

pete

on an

Gould W. Van Derzee

halted.

competition

Unnecessary
lifted

be

the

among

op¬
mo¬

a

vari¬

restraints

that the

so

and

railroads

restric¬

may

com¬

prosperity of

It has

been

our

stimulant

to find better and

us

after year—of producing,
an

If

given

and
more

if it

is to survive

as

industry is an example in
Against continuing encroachment of government

free

a

It is
an

as

all

free enterprise.

a

It is

enterprise.

to compete
move

on

is

all

the

operate

their

properties

strength and ability in 1953.

they will

secure

the nation's traffic.

their

rightful

And

roads operate and

of

with

1952.

their

today for

industry.

our

that

the

home

year-round

greatest

air

opportunity

single

'■

.

The Weathermaker home concept which we conceived

—that

is, the home built for and around air condition¬

ing caught the interest of the home builder and the home
during the

year

just ending.

And the home in

whichwtemperature and other air factors
12

months

a

year

was

controlled

are

brought out of the luxury class

and into the price range of the average home buyer.
At year

end, for example, the price level of air con-:

ditioned homes

was

dramatically lowered when Carrier

share

of

in

Corporation, two leaders in the field of pre-'

1953

my

will

belief that the vol¬
compare

favorably

provide

year-round

air

conditioning

in

homes, which range in price from $7,000—up.
I

feel

sure

that

builders

will

ditioned

dwellings.

very

soon

now

their bets only

place

when buyers,

And

the

time

speculative
on

is

fully
not

home

air

far

con¬

distant

especially when considering re-sale value,

will pass up the non-air conditioned home as a relic of
the horse and buggy days.

Assuming

compete, it is

business

and Knox

fabrication, to

<

despite all the handicaps under which the rail¬

ume

believe

I

presents

rail¬

this basis of freedom, the railroads

forward in

basis

This

are

they deserve.

opportunity to

and

that

conditioning,

conditioning

market¬

ever-increasing volume of goods

*

Corporation signed contracts with Gunnison Homes, Inc.-

will
on

air

owner

nation is founded

constant

a

be increased still further.

Despite the great potentials in the foregoing fields of

and

equal basis with other modes of transport.

freedom.

But

good job during the past 20 years
jungle of bureaucratic hurdles placed in




to

roads want.

a

power

traffic.

survive

to

national

of government.

The electric

longer

no

the sort of freedom the railroads must have if they

constructive and encouraging rather than a restric¬
tive, competitive and threatening attitude on the part

spite of

are

This is the kind of freedom—and incentive—business

a

in

passenger

tions

must have

cannot

people want

flexibility in the

They

and services.

con¬

a change in trend would be a most
^wholesome de¬
velopment for our entire economy. Business deserves

its way.

intense

ing and distributing

Such

Business has done

There is

efficient ways—year

a

business¬

socialism

properties.

challenge which has enabled
gov¬

themselves.

to believe that the

men

the

for

freedom and

more

their

as

forms of transportation for the nation's freight

upon

our

where necessary, but doing for
peo¬
do

nopoly.
ous

umpire

as

of

The progress and

citizens

through

acting

eration

ever-

provide

all

past, is

years

greater

heights and in doing so assure
continuing improvement - of
American

our

today,

I

a

reasonably

think that the

use

will advance from
million

new

homes

favorable

economic

of complete home air

climate,

conditioning

relatively small percentage of the

a

built

half the total by 1958.

each

This

year

assumes

up

to

as

much

as

that manufacturers

Volume 177

will be successful in

bringing prices down still further

and that installation costs wdl also be reduced.

furniture type of cloth for the automotive industry, will
continue to reflect favorable operations for this line.

ELMER L. WARD, SR.

\-

.<

v

'

President, Goodall-Sanford, Inc.

Any further

To meet the swiftly growing aemand, carrier Cor^
poration has recently spent $7-& million to equip and
open a new, one-iloor conveyor-line production plant
in Syracuse. This will provide a 25% increase in capa-r
city. In