Full text of Commercial and Financial Chronicle : January 24, 1952, Vol. 175, No. 5084

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J
ESTABLISHED 1S39
UNIVERSITY
OF MICHIGAN

m 2a 1952
NSNBf MW£0<NI

Reg. U. S. Pat. Office

New

Number 5084

Volume 175

EDITORIAL

-

Developments in
Medicinal Chemistiy

See It

As We

annual

By MARLIN T. LEFFLER*

eco¬

report to Congress.

'

in large measure determined by
him, or whether the

was

what his Council had said to

President

erally

■

had

controlling;, hand in what his

a

reported td him.v It is, however, gen¬

Council

understood

Chairman of .the
sort of preferred posi¬

that'- the

Council has at present a

and that his

tion in the mind of the President,
views influence the
s

This is

points

out

recent advances in

on

I

am

Prominent industrialist and

'

a

story about three men—a

1

of their, particular

sciences was the

regular reports of.that*body were ;■.'oldest. It Was offered by/the doctor
for light on economics or eco¬
that medical science-, was really the
nomic subjects, than for clues as to the general ) oldest because vthe ;Lbrd perfoiiued
surgery, ywhen' He; .made.^Eve from
direction of the President's thinking on questions
•if Adam's rib;t; The engineer suggested
much broader than one expects to; find Jin dis¬ /■that
certainly .engineering, was .older
than that

1

/

frank
about it, constitute a weariness of the flesh and
a vexation of the spirit.
As an exposition of the
basic social and political' philosophy that now
to be brutally

about the economic system,

enlight¬
the de¬
gree in which we as a nation have strayed from
the path of our forefathers, and indeed from the

governs

the Administration, it is at times

ening—and always a sharp reminder of

Continued

v-

.

on page

32

;

made

his

|

manufacturers

1,200.

and

Of

Leffler

Marlin

approximately

11

♦An

address

by Dr. Leffler
III., Jan. 15, 1952.

FORECASTS

IN

before

THIS

the LaSalle

on

more

and more becom-

-

Street
/

ISSUE—Starting

011

most to

lose in the

you—first he agrees with you

Continued

32

we

by'Mr. Rovensky before New
New York City, Jan. 21, 1952.

address

♦An

Association,

6

John E. Rovensky

associates, he wearily
in principle and
then blandly asks—"Well, what can we do about it?"
Well, of course, we can't do much about it just now.

Women,

page

the

catastrophe — are losing
by default.
When you

speak on this subject to one of your

inter-

page

fight

listens to

States is

are

have

impending
this

Continued

Chicago,

what do

'

—who

distributors in the United

these

and

years,

go—how much longer are you going
to sit back and idly wait for things
to work out—which they never do.
We—the sensible-conservative class

cently—which fact makes its extensiveness more impres¬
sive. The extent of the subject may be gauged by a few
words about the pharmaceutical industry itself.
It is
estimated now that the grand total of pharmaceutical
about

30

or

ing the servant—-the chattel of the
state—liberty is going out and as it
does slavery comes in. r
Just how
much farther do you want this to "

by

Regardless of its actual age, med¬
ical science has grown up only re¬

20

individual is

Finally,

claim

of life—that of individual

see?
You can call that future
picture Marxism, Socialism, Fascism
or any
other kind of "ism"—but it
always means the same thing—the

stating that it was economics that
Created the chaos.:*•'/»>
;s 1 / %

BUSINESS

MORE

economist

the

way

you

because before Adam and

bringing order out of chaos.

civilization—our

Our

--Eve, the Lord created the world by

dubious ^generalizations

of

endless/■ reiterations'

;low rank.;-; Its

pur¬

liberty, is being undermined and whittled away at an
alarmingly increasing rate. Look back 20 years; see
where we stood 20 years ago and then, where we now
ward

to be studied less

economics, it must be assigned a

from

and speculators,
while today's stems from monopolistic power of unions.
Holds new type is fed mainly by repeated raises in all
manner
of pay, including wages, and hence remedial
measures such as credit control, etc., aimed at old type
of inflation, are of almost no value in present case.
merchants, ! manufacturers

of

stand; then project this course for¬

-doctor, an. engineer, and an econor
E mist—who* were arguing about which

stood that the

document on

from all historical inflations.

chases

going to speak to you about some of the more
developments in medicinal chemistry—a branch
earnest only a few decades

I recall

.

a

ex-banker emphasizes today's

essence

Avers former inflations received initial impetus

In referring to the history of medicinal .chemistry,

ago.

although only one of the three compos¬
ing it has any standing at all among economists.
The fact is that the matriculate have long under¬

As

ROVENSKY*

American Car & Foundry Co.

inflation differs in

great

of science whose role began in

in name,

cussions of economics as such.

Copy

'

recent

Chief Executive greatly,

council of economic advisers at least

a

Chairman of Board,

medicinal
developments that have
marked the six years of World War II. Tells story of
discovery and production of antibiotics and other prod¬
ucts of medical research. Says there are many new anti¬
biotics "just around the corner," and greatest problem
is to provide better supply of blood for wounded men,
and substitutes for food by means of injections. Reports
some
progress in drugs for heart diseases, arthritis, and
rheumatic fever, and in use of radioactive isotopes.
Leffler, in comment

chemistry,

had to say to

mine whether what the President

Congress

Dr.

By JOHN E.

Laboratories

Associate Director of Research, Abbott

Along with it was, as
usual, the annual economic review by the Presi¬
dent's Council of Economic Advisers.
In such
matters as these it is always difficult to deter¬
nomic

a

Today's New Type Inflation
And Its Tragic Implications

Recent

.........

The President last week made his

Price 40 Cents

York, N. Y., Thursday, January 24, 1952

on

page

24

York State Bankers

present some

outlook for Trade, Finance and Industry which could not
ANNUAL REVIEW and OUTLOOK ISSUE of Jan. 17.

of the additional opinions on the
be

DEALERS

accommodated in our

State and

in

U. S. Government,
State and

Municipal

of INDIA, LIMITED

R. H. Johnson i Co.
Established 1927

Kenya Colony and
Head

HAnover 2-3700

Office:

26,

London,

INVESTMENT

Branches in India, Burma,

Colony,

Street, New York 5

64 Wall

COMPANY

OF NEW YORK

Scranton

Harrisburg

Williamsport

Wllkes-Barre

Ailentown

Washington, D. C.

Bond Dept.

Teletype: NY 1-708

Securities

Direct

Private

VANCE, SANDERS & CO.
Devonshire Street

"

Angeles




14 Wall Street, New

York, N. Y.

Principal Commodity

and Security

Chicago
Los

Dean Witter & Co.
Members of

BOSTON
New York

Bmsd Det*nmu»t

Los Angeles • Chicago
•

Honolulu

CHASE

THE

£2,500,000

Bank conducts every description
banking and exchange business

NATIONAL BANK

of

or no cat

Trusteeships and Executorships
also undertaken

or nfw york

Wisconsin Power
& Light

Co.

COMMON
Prospectus on request

DEPARTMENT

Goodbody

&

Co.

ESTABLISHED 1891
MEMBERS

NEW YORK STOCK

Dortimox Securities
6 rp oration

NEW

YORK

IRA HAUPT & CO.
.h'

EXCH.

40 Exchange Place,
115 BROADWAY

Boston

£4,000,000

BONDS & STOCKS

Exchanges

'

San Francisco •

Capital

Capital.:—_—£2,000,000
Fund

Wires
CANADIAN

Ill

Ceylon, Kenya
and Aden

CANADIAN

Canadian

Hawaiian Securities

^

The

~

Pacific Coast &

dealers or

Paid-up
Reserve

Albany

Troy

ST., N.

Subscribed

THE NATIONAL CITY BANK

PHILADELPHIA

BOSTON

BOND DEPARTMENT

Proipectus from authorized

Kenya,

and Zanzibar

BANK & TRUST

30 BROAD

Kericho,

Uganda

Bishopsgate,
E. C.

SECURITIES

Chemical

Bonds

Government in

Bankers to the

Securities
telephone:

Municipal

NATIONAL BANK

New York 5, N.Y.

end other

111

Broadway, N. Y. 6

WOrth 4-6000

105 W. ADAMS ST.

CHICAGO

York Stock Exchange
Principal Exchanges

Member* New

Teletype NY 1-702-3

WHiteball 4-8161

Boston

Teletype NY 1 -2708

Telephone:

Enterprise 1820

A

2

The Commercial and Financial Chronicle

(366)

TRADING

The

MARKETS IN

Southern Production

4.8% Deb. & New Common W. 1.
$6.00

$7.00

&

Central Public

Forum

participate and give their

Preferreds

reasons

for favoring

(The articles contained in this forum

Utility 5% '52

they to he regarded,

are

offer

as an

to

American

GLENN
u

■

Corporation

Executive

Vice-President,

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

earnings

&

120 Broadway, New York 5
Correction

Teletype NY 1-583

In

2,

American

on

The

Corp.

17, on page

published Mr. Anderson's
of the American Enka

we

analysis

Corporation.

Specialists in

this

In

Mr. Anderson wrote

of Jan. 21, as
"It has

Rights & Scrip

York

Curb

Tel.

REctor

in

error

YORK

could

the

addition

losses

been

million

to

first

1951.

of

for

reserve

in

as

1950.

S

2-7815

Capital

flight

top

In

"I

American Furniture Co.

Dan River Mills
Moore Handley

provide

business.
of

The

this

nomic,

.

Bank of America N. T.

&

In

so

its

Engineering

further

true

in-

characteristic
which

is

an

investment for

Request

[income
growth

and

Western

BOwling Green

NY 1-1862

dustries,
Ag g re s

9-0040

T.

management,

(3)

government

bank

Little Fellow's

Largest
in

billion.

for

our

Study

fornia

Western

York Stock

Exchange

;

^

Street, New York 4, N.Y.

WHitehall

10

facts

bright

horizon

of

as

the

the basis for

management-employee
imagination and pur¬
The 5V2% yield currently
from

point

star

of

our

end

1951

of

of

supported by
power is a realistic

earning

MARKETS

IN

good return

in

UTILITY STOCKS
Direct

Private
to

New

Telephone
York

CAnal 6-1613
I. B. Maguire & Co., Inc.

Members Nat'l Assn. of Securities Dealers Inc.

Tele. BS 142

Portland, Me.
Enterprise 2904
Hartford, Conn. Enterprise 6800
Open End Phone to New York Canal 6-1613




total

a

of

up $376 million,
ments amounted to

million.

A

ALBERT H. DEUBLE

million separate loans

to

The

Denver and

Railroad

the

Rio

were

strengthen

as

ings

$3

of

$60.8

Ogden
with the

$5

not

miles

across

the

Wasatch

and

Rocky

Ranges

be¬

Lake-City.
road is considered by many

has become

most

scenic

"California

in

Zephyr"

1949.

take

mqde

taxes

million

and

for

earn¬

expenses)

1951,

com¬

pared with $56.8 million for 1950.

Members

Tel.

small

issue

common

convertible

around

into

1

$80,

share

of

They also represent

mon.

lent value. Dividends

stock

u

/

Albert

H.

Deubie

are

a

about

1950).

share

Tel. NY 1-1932

;

Bought—Sold—Quoted

:

oAllen & Company
30 Broad St., New

York, N. Y.

com¬

excel¬

Phone

HA

2-2600

—

Tel. NY

1-1017

this issue

on

Bookshelf

Placer Development,

LEAD-ZINC

Bituminous Coal Annual

is

and

Owners'

Lowell

Bureau

(1951)

industry—

of

Policies
Loan

South¬

John R. Lewis, Inc.
1006 SECOND AVENUE

of

SEATTLE

—

Broadway, New
Y.—-Cloth—$3.

flation—A statement by the Con¬
of University Economists

ference
called

by

Association

basis

the
—

105

ELiot

3040

National

Research,
York 23,

Monetary Policy to Combat In¬

a

SE

the

Corporation

Harriss

Economic

1819

N.

4:1.

There

the

Analysis available on request

Building, Washington 5, D. C.

C.

—

of

even

on

TUNGSTEN. OIL-COLD

.

National
National

Planning

Over-the-Counter

Quotation Services
for 38 Years

Planning

for these
early

Association, 800 21st Street, N. W.,

expectations.

Earnings for 1951
$20

Assn.

Insurance Stocks

actively traded on the
Stock Exchange.

are

York

Home

the

sound

Dealers

New York T

DIghy 9-1550

Teletype

3:1

or

Security

Broadway

are paid annually in
March. The
great speculative play should be,
however, in the common shares

split-

on

p

Y.

is

highly leveraged and the present
and prospective earning power is
very high.
Based upon 1951 re¬
sults, the shares are selling about

selling

N.

Bank and

shares.

common

History

at

basis of

aiding

pride

Gersten & Frenkel
150

The Denver

The

General Aniline & Film "A"

of the most popu¬

one

lar and profitable transcontinental
trains since its inauguration
in

possibly

possibility
a

Washington, D. C.—Paper—15c.

are

estimated at

before

funds

^

the

—Paper.

February
meeting; and
(2) the strong

2.4

250

Foote Mineral

tween Denver and Salt

ern

from

share

BS

Dewey & Almy

around

600

Bituminous Coal Institute,

the

.

could

a

Teletype

:

Commonwealth Gas Corp.

"through the
them," ex¬

goes

Rockies,
tending

—Compendium

dividend

to

St., Boston 9, Mass.

7-0425

the

on

dispute

Denver

suggest

increase

_

whopping operating

(after

reasons

able

in production for the
national de¬

Shareholders

State
CA.

N. Y. Telephone WOrth 4-5000

^

Business Man's

Western

(1) A prob¬

bil¬

fense program.

the

Grande

request

Limited

Western Railroad Company:

California's

robust economy as well

in

rate

The

the purchase of the common shares
of the Denver and Rio
Grande

reveal

of

148
Tel.

Pacific.

which

Company

Two immediate

during 1951 adding up to $5.6 bil¬
Loaning
activities
were
to

of

Member, New York Stock Exchange

lion.

geared

gateway

New

Partner, Oppenheimer & Co.,
New York City

billion—

total

The

suits this objective.

great

$3.6

and

money

growth.

America, which
over-the-counter, ideally

and invest¬

$2.4

31 Milk St., Boston 9, Mass.
Tel. HUbbard 2-5500

reached

$196

its

our

lion,
up

his

on

for

deposits jumped to $6.8
increase of $624 million;

an

loans

revenues

shares,

prior conclusion.
example: Resources reached
the magnitude of $7.5
billion, an
increase of $764 million over a
for

TRADING

secured

$1.69

year ago;

ACTIVE

well

a

For

4-0418

The

recommendation
Union

sub¬

stock of Bank of

The statistics for Bank of Amer¬

ica
25 Broad

increases

on

if the ICC upholds an examiner's

with

is traded

country.

OPPENHEIMER & CO.
Members New

the

these

cases

flight

Bank," (8) Newest

These

—

all

opportunity

inescapable conclusion: Cali¬

one

Ask

following

Information

the

Bridge-line

four times earnings (present price
about
$71).
The 5%
preferred

non¬

the

banking activities on a widening
scale, and (10) Assets over $7.5

Securities

the

The alert
investor is interested in two facts:

ideas in banking, (9) International

Internal

in

THERMO KING RY.

area

yardstick of appraisal.

Jr.

world,
(4) Increasing population in ter¬
ritory served, (5) Financial
strength, (6) Operating statewide
branches, (7) Recognition as "The

GERMAN

shows

Lake

A

Birr,

MAINE CENTRAL R. R.

de¬

are

permanently in¬
(about $3 million yearly)

creased

Bank's

study

benefits

gross revenues).
DRG could be

its

real
H.

^

of

West and

dividend

(2)
ive

J

Francisco and

mills.

the

available

in¬

s

the

is

travelers

pose.

facts,
(1)
Capital for
namely:

M Wall SI., New York 5, N. Y.

eco¬

prog¬

direct fa¬

a

on

recent

increases

team

funda¬

mental

BUTLER, CANDEE & MOSER

State's

political

steel

The

top

based

10

on

Teletype

and

the

Geneva

branch offices

our

car¬

reorganization, con¬
stantially exceeded like gains for summated in 1947, was one of the
the United States as a whole.
most drastic.
The resulting capi¬
The conclusion is
inescapable talization is very simple: Equip¬
that the stock of Bank of America ment
obligations, $21.6 million;
is
an
attractive investment for fixed interest debt, $43.7 million;
income and growth based on the income bonds, $27.6 million; 5%
undeniable
fundamentals
of:' A preferred certificates ($100 par),
healthy growing territory, and a 325,313 shares; and only 351,677

vestment

Manufacturing
on

Golden

A

In

demonstrated

Mobile, Ala.
Direct wires to

a

City
development
of

up 230.8%; agriculture, up 247.0%;
construction, up 228.2%; bank de¬
posits, up
196.2%; bank loans,
up
192.7%;
motor vehicles, up
68.7%, and employment, up 53.3%.

ended, the

doing, its stock
has

is

San

Provo-Salt

important vital statistics: Popula¬

employees, depositors and share¬
holders.

road

Great

tion, up 53.3%; individual income,

S. A.

In the year 1951 just

LD 33

Information

the

social

impact

able

Bank of America chalked up new
records to the direct benefit of its

llllllllllllllllllllllllllllllllllllllllllllii

&

it is worth mention¬

,

N. Y.

NY 1-1557

whole

major importance,
accounting for 32% of total ton¬
nage.
Originations run
around
49%. Unprofitable passenger busi¬
ness
is unimportant (only 5% of

large extent,"

a

that in the period 1940-1950, Cali¬
fornia has
experienced remark¬

JR.

President, First California Company,
San Francisco, Calif.

Lynchburg, Va.

Texas

to

are,

vorable

BIRR,

The

business

and

Curb

HAnover 2-0700

of the

the

heavy freight

a

between

and

scattered

America

continue to have

ress

in¬

of

growth.

Scott, Horner &
Mason, Inc.
83

Bank

the

prodigious

team

York

25 Broad St., New York 4,

strategic
link in the increasingly important
route

/

ing that

Hardware Co.
THEODORE

It is

one

in

lines

Chicago.

synonymous,

misun¬
are

Grande is

Rio

efficient

business.

primary builders of the

California

with

you

avoid

to

derstandings in case there
quiries about the article."
H.

Tele. LY

to

information

Exchange
Exchange

rived from the industrialization of

Since

in

wanted

this

and

country.

em¬

ers.

1949, $6.23 in 1950, and
$3.69 for the first 36 weeks of 1951.'

Trading Markets

Onnenheimer

rier with a full share in the highly
profitable transcontinental freight

manage¬

per

$.5.37

Members New York Stock
Members New

H.

Co., New York City. (Page 2)

most

progress de¬
largely on the morale and
capabilities of its personnel.
In

the 17,000 united

Albert

—

Steiner,Rouse&Co.
New Orleans, La. - Birmingham, Ala.

ver

organization's

and

San

'

Western

$5

pends

Bank's

share, also adjusted for the split,
were $5.42 in 1947, $7.18 in 1948,

llllllllllllllllllllllllllllllllllllllllllll 9

> &

funds reached $412 million, or an
increase of $23 million.

this regard

Company

rw-Mo

loan

the

at

Grande

to be the

1950, and $3.69 for
weeks

$2.22

Rio

and

Bought—Sold—Quoted

S. A.—

Francisco, Calif. (Page 2)

for
had

Louisiana Securities

Birr, Jr., President,

ment of Bank of America continue

$5.42 in 1947, $7.18 in
36

been

maintained

level

ployees

earn¬

have

effort

the

Exchange
Exchange

NEW

BROADWAY,

an

1951

share

per

Anderson, Ex¬

America N. T. &

Railway

earnings

copying the earnings down for the
article, I left out the year 1948, through 537 domestic and foreign
branches made possible the con¬
but used
the earnings for 1948
with the year 1949. The last sen¬ tinuing growth of Bank of Amer¬
ica, thereby benefiting themselves,
tence
in
the
sixth
paragraph
the depositors and the shareholdshould have read, 'Earnings

Membert

New

were

1949, $5.34 in

frfc ppNNELL & Co.
120

is

I stated that the

stock.

ings

Stock

there

net

An

at¬

my

American Enka Corporation com¬
mon

York

follows:
brought to

the article relating to earnings of

Since 1917

New

under date

been

that

tention

connection,

us

of

share

Enka

issue of Jan.

our

the 24 million shares

on

Corp.— (Correc¬
E.

Arnold

H. Theodore

outstanding amounted to $2.12 per
Denver
vs. $2.16 per share for 1950.

Raleigh, N. C.

Alabama &

"

,

Vice-President, Kirch¬
Associates, Ra¬
leigh, N. C. (Page 2);
ofer

After adding $10 million to the re¬
serve for possible loan
losses, net

Kirchofer & Arnold Associates,

Established 1920

BArclay 7-5660

ANDERSON

E.

Enka

ecutive

Bank

New York Hanseatic

and

Selections

tion)—Glenn

particular security.

a

Thursday, January 24, 1952

.

Week's

Participants

Their

A continuous forum in which, each week, a different
group of experts
in the investment and advisory field from all sections of the
country

American & Foreign Power
Old

This

Security I Like Best

.

.

Underemployment

in
Agricul¬
problem in economic de¬
velopment—Arthur
Moore—Na¬

$17 after funds

($12.49 in
The EPT exemption is ex-

cellent and amounts to about
$18.

Today the rapidly growing Den-

National Quotation Bureau

ture—A

and

-

tional

21st

Planning Association, 800
Street, N. W., Washington 6,

D,- C.—Paper—75c.

-

Incorporated
Established 1913

46 Front Street
CHICAGO

New York 4, N. Y.
SAN

FRANCISCO

Number 5084

Volume 175

.

The Commercial and Financial

.

.

(367)

Chronicle

INDEX

Overpriced Commodities,

AND COMPANY

—Marlin T. Leffler

long-term trend toward currency depreciation, today's situation
is vulnerable, investment adviser calls attention to rise in inven¬
tories since Korea. Contends rising commodity prices generally

—Richard

interested
what "they

entire world—is vitally

and

commodities

the

Of

cost.

155,000,000

the

disregarding-

a

re¬

about

country

cent survey
co

£ i

of
s

fashion to

a

e

c

n

by

conducted

,

".

Federal

the

Reserve Board

that

showed

only about 7%
of the spend¬

sort

39%

everbody
owns
and
buys
commodities.
Commodity
prices enter into every meal we
eat, every garment of clothing we
wear, every article we buy or use.
Commodity prices determine basic
living costs so that every time

of us.
Labor unions

every one

As

members.

living

wage

into

written

tracts.

Mandatory

failures

the

Incorporated

It

the

opinion

writer's

the

is

Austen

F.

their

cost

of

and

vulnerable

to

prices, coupled with

•

policy of the
to favor
living escalator contracts.

cently it has been the

consumer

1

•

,

-

•

;

/•

24
and

Field

Dealer-Broker Investment

decline in
in the stock market,

8

of

18

r—

place

Is

Activity

Indications of Current Business

Inflation Real

Current

the

much-touted

or

readjustments cannot
take place when the cost of living
declines.
The strong bargaining

ward

wage

the matter of wage increases, pen¬

plans

welfare
ness

a

employee

benefits have given busi¬

fixed-labor

high

which

head

other

and

may

make

over¬

it

ex¬

tremely difficult for companies to
maintain
earnings
when living
costs decline.
•

-

In the

past few years, commod¬

by the
Statistics
Index of Wholesale Prices (1926=
100), have climbed from 77 in
1939 to over 180, reaching rarefied
heights above 150 for the fifth
time in American financial his¬

ity
U.

prices,

S.

as

Bureau

measured

of Labor

part

nothing

more

solid than psycho¬

"Expansion
natural

or

proper

Securities

High prices, per se, are not in¬
They are simply the
outward symptoms or .manifesta¬

Now

in

Registration..!

prices

High

>

in

(1) by an

the supply of

Continued

.

Security I Like Best

money,

on page

r

Twiee

1

Weekly

CHRONICLE

U. S.

Exchange

Boston 8

Hubbard 2-8200




Glens Palls

Hoving Corp.

Stromberg-Carlsont

1952 by William B. Dana

Copyright

Patent Office

DANA COMPANY, Publishers

WILLIAM B.

.

,,

25

'

mr

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REctor 2-95<0 to 95<6-

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50 Congress Street,

.

„

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-

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Whitin Machine

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®ry.25' l9J2, ^ th®. pos.t f°ffiCe,»at
York, N. Y., under the Act ot March 8,

Works

1879;

Subscription Rates

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SE1BERT, President
1

.

-

Worcester

_.

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city news,

Offices:

Chicago 3,

111.

etc.).

135

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St.,

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of

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Canada,

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and

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eign subscriptions and

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(general news and adverUsing issue) and every Monday (complete statistical issue
market quotation
records, corporation news; bank- clearings,
Every

U.

Possessions, Territories and Members
Dominion

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Thursday, January 24, 1952

state

1-5

Teletype—NY
-

»

.

Members New York Curb

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Chicago

!

Eng¬

Company

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-

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c/o Edwards & Smith.

Drapers'

and

COMMERCIAL

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Di-Noc

48

Washington and You.

WILLIAM

York Stock Exchange

Dictograph

38

28

FINANCIAL

PREFERRED STOCKS

HAnover

.

5

(Walter W'hyte Says)

Tomorrow's Markets

Published

High Grade Public Utility and Industrial

Street, New York 4

2

State of Trade and Industry.

"

Reentered

New

Collins Radio

.

brought about by

real inflation can occur
increase

The
The

tions of inflation.

•

Reg.

Members

41

—

flation.

interested in offerings of

25 Broad

Baker-Raulang

31

Salesman's Corner

Securities

....

Air Products

25

Railroad Securities

The
are

44
28

land,

We

23

...l

Offerings

Securities

Public Utility

.

specifically, over-issue of the cur¬
rency, or the state resulting there¬
from."

47

Governments..-:..-.

Security

Prospective

PL, N. Y, 5

NY 1-1826

5

_•

Report

Reporter's

/ Our

May

Wilfred

'-Observations—A.

value-

just

or

40 Exchange

Teletype NY 1-1825 &

as

extension beyond
limits, or so as to

normal

exceed

inflation

MACKIE, Inc.,

&

HA-2-0270

8

Our Reporter on

defines

Webster

30

Banks and Bankers..

it

of

■

Singer, Bean

20

Notes

NSTA

logical "thin air"?

today in

position of labor unions
sion

is founded on
inflationary fact?
How much of
it
is overdone and
founded on
What

News About

inflation

i*

*f

40

:

Mutual Funds

'

present-day
critically.

the

examine

Let's

'

•

the

since

debacle of 1929-1932.

grant automatic wage increases at
periodic intervals when the cost

living index rises, but place a
definite floor below which down¬

'

15

News—Carlisle Bargeron

Washington Ahead of the

From

Phoney?

of

CORPORATION
'•

which

worse
has taken

contracts, however,

Some of these

RESEARCH

Recommendations

Einzig—"The British Gold Drain"___

,

anything

than

perhaps

/■/;,.v,'. r;v'

8

__.

Wage Stabilization Board
cost

DEVELOPMENT

.
—

Coming Events in Investment

emphatic

business and

ASSOCIATED

2 *•

?

merchandise, can lead to a
and

Angela:

Los

and

Philadelphia

22

,

Securities

Canadian

commodity
plentiful sup¬
durable and

of

J

___£_

Shelf

Book

Business Man's

correction.

plies
severe

Direct Wires

Cover

c

Bank and Insurance Stocks

.

is

other

Teletype NY 1-337C

9-5133

Regular Features

sharp intermedi¬

a

(one to two years)
again,
high

ate

Once

BO

18

Rukeyser

32

See It (Editorial)

As We

de¬

currency

preciation, today's situation

United

the

toward

16

:

(Boxed)

Price of Bungling

Broadway, New York 6

61

that

the

trend

to Free Economy,

Voters' "Take Home Pay," Urges

Increase

support lent to; the
economy
by the high gear .(but
temporary)
defense effort; de¬

a

first

David

Says

years.

despite

''

'

•

request

on

J.F.Reilly&Co.

15

Message...

Declining Profit Margins Threat

panic

postwarbusiness

past

Prospectus

14

Budget Deficits

Text of President's Budget

Roy

7

,

President Forecasts Huge

v

'

1

Becomes
*

Vice-President,

few years ago
example, and re¬

Workers

was J

to

increases have been
an increasing num¬

Motors

General
Auto

costs
result,

employer-employee con¬
The
contract
between

of

ber

a

keenly aware
of commodity

living

and

prices

Identity
4

Parties

Political

to

Contributors

Financial

of

A.
Foulke,
showing business
and liabilities in some of
by

Failures,"

term
are

importance

the

Southwestern Natural Gas !

6

Government in Jeopardy When

'

or

up

Natural Gas & Oil*

21

Outlook for Business in 1952

on

Sweden Holds Free

down, it spite a certain amount of inflation
higher or permanently frozen into the price
costs—to each and level, and despite a very long-

living

Opinions

National Alfalfa

$•#'.'

)Jt

More

14

\

___

'C'

;

something—in

lower

of

^'—Thomas I. Parkinson.

1814-1818, in 1868-1880,
and in 1920-1922.
Dun & Bradstreet Co. has an interesting book¬
let entitled "Peaks and Valleys in
Wholesale
Prices
and
Business

absolutely

go

and Cities '

Inflation and the Rising Costs of States

Johnston Testers*

/« —■ 13

.

60,000,000
own
government
bonds; and 54% or 84,000,000 own
insurance policies.
In comparison,

means

Flying Tiger

12

and Beyond—Dexter M. Keezer

The Business Outlook for 1952
;

days, * and.

War

Revolutionary

or

commodities

«

11

1952—J. D. Small-:

Impact of Military Production in

v

,

again in

or

another;

•

buying and holding land and other
commodities at the peak in post-'

of

one

Richard D. Donchian

177.7.

History .tells us how thousands:
people lost money, '■ how ybigj
important business concerns went
broke and
how people suffereduntold
financial <■ hardships ; by

^

stocks

10

Haile Mines

of.

ing units, con¬
taining
11,000,000 people,
own

recent high of

a

WHitehall 4-6551

Telephone:

i d e s p read "talk

in

recovered

Dept.

10

1952—Bradbury K. Thurlow

Situation—W. Carroll Mead___;

The Investment

♦

of last year and has
a
slow and feeble

21

Aug.

on

w

Securities

9

Dixon

inflation, fell back to -17-3.4 '/ U. S. Responsibilities in Free World—Hans A. Eggerss.

sum e r

n
n

of 183.9 recorded on
20,v 1950, the price index,.

March

of sheep!

STREET, NEW YORK

WALL

99

4

New Foreign Policy—Henry R. Luce__

a

A Market Policy for

point

high

in

people

Essentials of

War I;'and/

Recently, from the extreme

4

:

Inflation, Money and the CIO—Edmund C.

count¬

start

f

._

Roads—Roger W. Babsoir

Our

-

obsoletes.

over

And

3

___,

Cobleigh..

For Sportsmen Only—Ira U.

,

tory—after the Revoluntary War,
after the War of 1812, after the.
now.

lis.*

Obsolete

declines. Warns of com¬
and cushions are exhausted.

Civil War, after World

sleep

to

dollars instead

ing

Business

____

lose

'em

Sell

t''

•'

'

^

Donchian

D.

Don't

.Cover

Overpriced Commodities, the Stock Market and

stocks, while economic maladjustments present

Every person in the United
States—and for that matter in the
in

COUNTING SHEEP?

.

_____________

t

today lead to vicious devastating price
ing slump, when supporting props

Chemistry

Medicinal

in

Developments

Recent

limit rise in

Cover

—John E. Rovensky____

President, Futures, Inc.

lent by high gear defense effort and

Asserting, despite support

Page

Tragic Implications

Today's New Type Inflation and Its

DONCHIAN

By RICHARD D.
Investment Adviser;

LlCHTfnSTEtSl

-

Articles and News

The Stock Market and Business

3

J'

■

40

Exchange Place, New

WHitehall 4-2250

& GO.

York 5,&Y.

Teletype NY

1423d

4

(368)

The Commercial and Financial
Chronicle

on

For

Sportsmen Only

Outlining
upward

a

Unlike

from

tensive

exuberance.
Classical

erudite,

economists

but

books,

make

between

in

sometimes

sharp

a

investment

their

Ife

Prepare

follow

i

to d

a

y

them

!

Bid
to

prudent

re-

long solid
ord

of

New

Greene, together with
nancial

a

Ira

U.

Cobleigh

found

rec-

Cigar

to

those

'twenties,
there
the

for

usually

was

stocks would

sank, blood

the

rise";
rise.

a

on

the

it

is

in

market

security

Board of Direc-

3%

by

against

no

means

the

climate,

17

speculator,

recent

income

tax

wide

a

levels

in

corn-

might

gain

interest in capital
gains, with their
26% tax limit. To glean king-size

"iffy"

other

chance

a

of

for

Frobisher

mine—it's

a

gold

in

ronto

land

them;

pared

to

consider

now

to

As of
owned

Ad-

be

panies

in

extraction

an

01'

and

Price to yield

2.35%

ounces

see

what

Stock

Exchange,

New York

Exchange
and
other
leading
Security
and
Commodity
Exchanges

120

231

Broadway, New York 5, N^Y.
So.

Private

LaSalle St., Chicago 4, III.
Wires to

Principal Cities




on

has

interesting

at

was

1951

operating

$1,200,000

before

fine

producer

Get

with

the latest

trucks.

Spot

are

gas.

located

in

area

assets.
reserves

this
~

company's

reserves

that

be converted into
cash just as
soon as permits
for exporting
gas
from
Alberta can be
can

Atlantic

Coast

Fisheries

has confidence

in the profit¬
promotion of its one pound
formed frozen fish
package, and
new
pre-cooked lines.
The
ex¬
panded national consumption of

l'ishj prompted by

meat rationing
during the war, and high meat
prices currently suggests that if

Feb.1,1951

Interest at
Feb. 1, 1951

1,235,230
1,205,056

37.83%
63.03

.

I Mediterranean
Mines Incorporated
New Calumet
Mines Limited

Eugene Mining Corporation Limited

United Keno Hill
Mines Limited
as

a,

t

a

s

railroads

division

of

the

*

1,164,936
1,428,687
1,728,185
1,006,639
839,184
833,539

100.00
29.12
,'

•

28.57
49.38

company.

a

just

a

as

profit

priVate

on

roads.

Truck companies,
hand, have the use
highways which all of us

the

on

0f

other

the

build and maintain.

y

are

:

;

.

roads

faster

j>m nQt suggesting the truckers
build
their
own
roads.
I

we

however,

our

build them.

r

f

Qicni fi

p9

evfdence

t

n

If t°,nnage mig" f an et)uit.a.ble
I know that
proposition

yet

uathprp/tn basis?

will not appeal to the
truckfs' the abuse ot
But, I ask you, isnt it
80 often

comes

from

thp

tp«t<3

snonsored
sponsored

the

Inter-Regional
Transportation and

Council
made

privilege

by

hv
by
on

on

a

test

in

loads

pounds

Maryland.

of

were

22,400

a

Advice

first fairlv

piln

gacK

ta

their

share

maintaining
**

_

,

I

.

,

,

should

test

like

made

of

see

how fast

to

pieces.

collected

to

they pound
Should
the
a

case

our

caught,
big

against the
be

wears

until

"only the

are

pay loads," then a
system will need to
established.

careful check

be

courteous

I
is

cannot
a

vs.

deny the

pleasure

miles

Tolls

to

fact

drive

We

used

drivers
the

on

as

to

the

road.

If

overloading and recklessness continue, the whole industry will
suffer
r
,

<

Tru'kers

/

?

oueht

to

trv

to

•

retu¬

^

JfhemseIves before the

state

?nd Federal governments step ml
In fact' mU?*Tv? ?ove™ments
f

may soon lule that tiuckers

can

"snen downtown streets only after
6:00 p"m"
Eliminating trucks

"congested

Taxes

t ;stop!

truck

upon

m0st

some

overload

on the basis that

j0ok

taxed

Further, since

will

loads

roads

evidence

proportion to the rate he

out the roads.

^ couldn
th?y
they

,

similar

a

pleasure vehicles to

build

truckers

the

roafe
.

see

trucker, then he should
rn

are

of

our

averaSe motorist has to fight

than: once lately I've been scared
out of my wits by trucks lailing
to stoP at red lights simply be'

then

truckers

bearing

not

for

rther^wo^abreast^ sTthat
otlier' tw<? apreast so that

f°r his placef ?n *he ">ad- M°rf

into

what future tests will reveal
h becomes clear that

burden

the

romnre-

^es ?sight

test

Drivers

IT-hIrfwi
between Boston and Hartford,

.

If this

hensive

Truck

44,800

The 22,400 loads
of the concrete sec-

run.

damaged 28%
tions, while the 44,800-pound loads
damaged 96%
of
the
concrete
slabs'

to

about reg-

Many have noticed of late the

Various

and

few which brings

ulation of all?

stretch of two-lane concrete

highway

a

fubstantiate f th's
this fact

Roger W. Babson

mile

am,

>

suggesting

they carry
their fair share of
building and
maintaining the roadbed they use.
Perhaps a per-mile rate multiplied

can

areas

will be

from

the next

s^ep jn soiving the wretched trafthat
the

it

327

fjc conditions of today,

from

Pittsburgh to PhilatThe Editor of the "Chronicle"
super highway.
Yet would appreciate receiving comI resent, in
principle, the idea of meats on the views expressed
having to pay a toll on top of a above by Mr. Babson.
Letters
tax. With
tolls'currently averag- should be addressed to Editor,
ing from 1 to V/2 cents a
mile, "The
Commercial
&
Financial
this is simply
adding an additional Chronicle " 25 Park
Place, New
tax of 15 to
delphia

on

a

20-cents

gallon.

a

wonder how
many motorists

stopped
in

to

this

consider

fashion.

the

What

I

York 7, N. Y.]

ever

problem

would

be

reaction

your

should the current
price of gasoline at your
favorite
pump be hiked from 28 cents to
45

cents

per

our

and

Added

ways.

that

build

to

have

this

fair

a

success

some

modern

to

insure

financial

a

kind

toll

is

express

the

fact

degree
road

of

must

dangerous
•.j monopoly.
Pressure
might
be
brought by bondholders to'dis¬
courage

modernization

34.76

routes.

Is this

way

of parallel

New

York

Stock

New

York

Curb

New

York

New

Exchange

Exchange,
Board

Orleans
And

Exchange

Cotton

Commodity;
Chicago

Exchange

of

Cotton

other

N. Y. Cotton

Inc.
Trade

Exchange

Exchanges

Exchange Bldg.

NEW YORK 4, N. Y.

principle of high¬
CHICAGO

monopoly in the

terest?

J

Members
■-

•

of

28.76

1856

roads be¬

ing pounded to" pieces at a fast
clip, present funds are wholly in¬
adequate both to maintain old
roads

Established

H. Hentz & Co.

gallon?

Apparently with

•

33.75

make

business

make

than

proc¬

distributes fresh,
frozen,
canned, and deep fried, fish in
owned plants in Boston and Prov-

Akaitcho Yellowknife Gold
Mines Ltd.
Kilembe Copper Limited
(Uganda)___..
Connemara Mines
(Southern Rhodesia)
Giant Yellowknife Gold
Mines Limited
u,-Quayana Mines Limited

incorporated—operated

rue

ruining

expanding

Percentage

*Not

t h

companies

their

on

the freight
they carry. Railroads,
however, build and maintain their

And overloade

esses and

Shares Held

St.

in

states

overloaded.

write¬

arranged,
probably by next July first. In ATL
works out its new
packaged
addition to rights
owned, Security products
effectively, this common
also has leases and
reservations stock
might start swimming up¬

■j.

the

about 10% are

levels.

able

have

s

truck

profit

ner.

and

earning

k

c

reveal

years

.

e

xi

some

annual

.

The

about

development

31/2 million tons—20

over

Railroads and Trucks

roads

our

8,000,000—or

one-sixth

report
of Frobisher, and you will be im¬
pressed by the extent of holdings
and
the
horizons for increased

up—

30, 1951,

productive

MEMBERS
York

than

of gold in 1951

Mass., and a leased
terests in five oil wells and nine plant in Glace Bay, Nova Scotia.
naphtha wells in the Turner Val¬ Currently the company is expand¬
ley have been Security's most ing its hotel and restaurant sales,

Ernst&Co.
lurb

Better

are

recklessly.

nearly 49,000,000 reg-

Connemara recovered

Frobisher's Extraction
Company Holdings

Sew

are

vehicles

c

these

23,000

some

a

item

once,
and pays all the taxes
while he's
the lease. As of June

on

been

January 1,1991 & 1992

There

istered

com¬

shown in accompanying

as

tax," and trucks that

a

overloaded and driven

table.

net.

pre-

bringing
drilling at

geographic

Due

Condemns paying tolls "on
top of

February, 1951, Frobisher
shares

can

For six months ended Feb.
28,1951

program

the boys nearby are
he has to start

Important

2% Bonds

are
ruining our roads faster than
build them, Mr. Babson contends
truckers should pay
fair share of
building and maintaining the roadbeds they nse.

.we

capitalization of this broad spread
romantic mineral enterprise.

Security had granted options on
incetown,
35,374 of its acres.
Royalty in¬

Philadelphia, Pa.

By ROGER W. BABSON

4,478,956
quoted in To¬
$5 represent the

around

.

City of

a

Claiming overloaded trucks

and

•

$250,000

from

make

Our Roads

a

series of

Venezuela,

■

We Own & Offer
Subject

facts

you

tian

This

-selling at $2.90 on the Toronto
gains often requires the
Exchange
known
as
Security earnings. Just the shares in port¬
assumption of some pretty sportFreehold
Petroleums, Ltd.
For folio, of publicly dealt-in
ing risks.
com¬
some
reason
all
Canadian
oils panies, have a market value
today
Thus, having now assured you favor a boat load
of
of roughly
outstanding
$7 a share of Fro¬
of entry into a poker
game, with shares. Instead of
selling 100,000 bisher.
: 1
•
plungers or better to open, I common
at, say, $10 per share,
Should the world price of
propose
to wrap up a romantic
gold
they much prefer to sell 2 million
break sharply upward,
speculative package for you with at 50
away from
cents.
In consonance with
the U. S. official price of
a $5 limit—four issues
$35 an
which, I'm this fashion, there are
outstanding ounce, gold stocks in
quite sure,
have never before 1,900,000 shares of
general, and
Security Free- Frobisher
been played back to back.
in
particular,
could
hold.
romp.
Gold is eternally and uni¬
The first of these is United CiWell what
about this
meekly versally in demand and if you
gar-Whelan Stores Corp.
2,307,308 priced entry into the Alberta oil like a
golden gamble, this might
common shares are listed
on the
adventure? .First of
all, Security be it.
*
Stock
Exchange,
where
small owns in
perpetuity the rights to
The fourth speculation on
slices of ownership
change hands minerals
my
lurking
under
95,339 list is Atlantic Coast
at considerable
Fisheries.
velocity between acres in Alberta, located in the
No dividends have been
ten and three
paid since
daily.
i-same
general
zone,
north
and
United Cigar
succeeded, by re- south of Calgary, as the land of April 17, 1944 on the 463,872 com¬
mon shares listed on the
Curb and
organization, the old United Cigar better known
Calgary and Ed- currently
Stores of America in
quoted
at
about
2%.
1937.
By monton.
Company policy is to
Further, earnings have not been
sloughing off unprofitable units, permit
exploration and develop¬ more
ed
than a few cents a share for
streamlining
sales
outlets, ment by granting leases, or lease
the last couple of
United now operates
years.
about
195 options, to
But, as
responsible oil cornyou
drug stores, 69 cigar stores and
know, often * the best time
panies. The lease, as a
rule, will for speculative purchase
roughly 1,000 agencies. This type run for ten
is when
years with royalty an
industry or a company looks
from
Vs to 15% of gas and oil
feeble; and there is some evidence
production. The lessor can't
just that ATL is now
Interest Exempt from
turning the cor¬
sit around and wait
present

'

before

"Security"

Limited.

a

Canada,

at

supply

alti-

market

Federal Income Taxes

current

broker

move.

Then, if you buckle your
shares, then I suggest that, as safety belt for a
bumpy ride, you
provinces. homework, you look
up National may with

of

in Africa, silver and lead
Greece, but most important,

in

net

hering to the low price
set forth above,
please

of

complete

your

copper

of

favorable

fabulous Canadian oil fields.

have

resurgence

foregoing four seem too
incomplete a selection of Lilipu-

Surely no speculative program offs; and plans for much
larger
today would be complete without milling
capacity
mean
bigger
at least one
selection from the
earnings later on. United Keno is

starry eyed
heavy hitches

the

the

possibilities for the long term fu¬
ture.
Giant
Yellowknife
(29%
owned) has proven ore reserves

absurd

Cigar

current

now

tude.

and income for
every

prompted

Candidates

If

Al¬

Rhodesia.

the

in

two

in

common

list

new

observing that UCW

ar0Und

m0n,

perceptible
last 15 years, there are
probably 10 investors for safety
in

a

to suggest that United

rise!

Whereas, particularly with
emphasis

and

1946,

Either

pressures would

suggested

seiis

rise, or, if they

in

lot

a

Southern

of

side,

and

Capitalization is simple—
Here then has been
bundled to¬
only $515,550 4%% bonds gether a rare
speculative package.
due 1958 ahead of common
(each Egad what diversity! — A
drug
$1,000 bond
is
convertible
into chain?" an
oil, a gold and a fish.
280.9 shares of
common).
Plenty of risk, but plenty of room
for a splashy gain as well.
Get
Other
with

Canada

rights

shares of

cigar stores and hopping
up the efficiency of drug ana vanety units. So, by building some
hopes around a new direction top-

in the late
frequently called

West

fi-

This new ownership echelon
create reasonable profitabilf0r United by further reduc-

tion

who,

were

"speculators

and

0f names for the

jfy

portfolios. Today's article is dedi-

of

ago

new

tors.

vestment trust
cated

a

weeks

some

working control of United

may

11 y
in-

in

group,

secured

divi-

o n a

elements, however, suggest

UCW may now be
ready for
favorable turn.
A Mr. Charles

a

dend payment;
nor issues trad i t i

lot

Switching from oil to gold, get
load

that

here,
with

likely ward.

Saskatche¬

and sportsmen to go hand in
hand.

isn't

ty qf principal.
Seek ye
not

plus

Here's

dividends!

spect for safe-

shares

a

perpetual

leases

best year was 86 cents a share in
1946.
Also, company has never
loused up stockholders' tax brackets by the declaration of common

to

farewell

berta,

of

specula-

yourself

and

Thursday, January 24, 1952

.

retail business is
fiercely com- With current assets
luck, glean gains. You
of $1,300,000 Petroleum
around
petitive, and earnings on common,
3V8, Benguet might even be glad you took
it should be able to
long
stay in busi¬ Consolidated at 1%, Zonite Prod¬
for the past decade, have been unrisks, clearly labeled at the out¬
ness,
and perhaps convert high ucts, and Silex.
impressive, to say the least. The
set—for sportsmen
only.
hopes into plushy bank balances.

endless

distinction

and

tion.

of

acres

Manitoba

companies this outfit depends on
something more than a drill and a
prayer. It has productive royalties
right now, mentioned above, ex¬

"Expanding Your Income"

of basement-priced shares that might gain
causes
other than general market

group

velocity

in

wan.

By IRA U. COBLEIGH
Author of

*

142,000

some

land

..

public in¬

DETROIT

GENEVA,

PITTSBURGH

SWITZERLAND

Number 5084

Volume 175

.

The Commercial and Financial Chronicle

.

.

(369)

the economic
tance

as

a

to

the

days

store

Irrespective of whether

nite

deduction

calculable effects

from

the individual's

on

financial world in general.

f§

"Financial Chronicle" of
was

*

•

Cummings.

The

David

Revenue Act:

comes
secu¬

WASHINGTON,

C.

D.

members of District No.

The

—

11 of the

National Association of Securities

"■:7.v
--v.-.

Dealers,

'

'

recently

Inc.,

Percentage of

■>.

.>

Deductions and Exemptions

2 Children)

"

$100,000

Income Taken by Tax

73%

_

___

50,000

& Co.,
Washington,
D. C., and J.
Read
Branch,

63

25,000

42

:

10,000

V

28

Branch

Omitting to take into full account this tax charge is to make

a

Real¬

lates gross yields into actual income return

C

Current

market

Statistics

yields

as

90-Stock

equities.

on

follows:

market yield—5.8%

gross

v

this

1.6%

______

Edw. J. Armstrong

2.1

25,000

3.4

10,000

4.2

cies

>

Current gross market yield—3.57%
-,..,.rG i
.'-v1'
» -•
/}
"Take-Home" Return
"/''L ''
J,
„«'Take;
v-V
0.9%

Total-Income G.,;,

.

,

'

Recipient of:
•••

:

-$100,000
-

■

•

-

-

75,000

•

...
.

l.i

'■

:-'v

-

. i.
United States
Department of Commerce Bureau of Business Economics that the
national income rose $3,500,000,000 in the third quarter of 1951
to an annual rate of $278,000,000,000.
The boost, the "Bureau"
pointed out was largely due to increasing government and de¬
fense payrolls.
The study noted that corporation profits for the
third quarter, after taxes, were at an annual rate of $16,000,000,000, compared with a rate of $18,500,000,000 in the second quarter.
In

according to "The Iron Age," national metalworking
weekly, in its latest summary of the steel trade. No longer are
all products almost uniformly tight.
Recently there has been a
marked easing in several items, a few of which are now in easy

seen

-

im the follow-

common- stocks to^eeure, the: samfc yield 'after taixes, that is ;availtax-exempt

bonds

such

the

as

just-issued

Federal

Housing Authority Government-guaranteed; tax exempt bonds—
the coupon

yield being 2.20%:...

;

...

.».

r.

v

'

■

.

Total-Income

■

-

.

Com. Stk. Yield Reqillr.

f

of 2.20%

75,000

Mr.

6.6

:

>

C h

a r

1

e s

P.

succeeding

'

G.

as,

Fenton

Cramer: L. Victor Seested, Wash¬
ington, D. C., was elected Secre¬
tary of the Committee. > :
-' ; .■

District

No.,

on

In either

just relax them.

event restrictions will

be eased,

though it may be three weeks or so before action is announced.
This decision will be based on market factors which have been
evident for

Mills

time, "The Iron Age" observes..
advising consumers to switch from nickel grades to
possible. Some have done so with sat¬

some

are

chrome stainless wherever

isfactory
outlook

results;

others

for nickel is

are

still

considering the change.

supply at warehouse level. On
of heavy-weight products
which show no signs of easing. Plate demand is getting even more
voracious. Even larger quantities of this product will have to be
turned out on strip mills. All bars, excepting tool steel bars, are
in tight supply. In structurals the gap between stated needs and
supply has been narrowed. But it is still wide enough to keep
strong pressure on the mills for at least the next several months,
this trade weekly points out.
Carbon

tool

steel is in good

the other side of the

ledger

are a group

is confused and orders for military use,
far short of expectations. Yet other users
been cut back resulting in open space on mill books. Engin-

The

alloy picture

while large, have fallen
have

11

comprises the
District
of
Columbia,
and
the.
states
of ; Maryland,
Virginia,
West Virginia and North Carolina.

*

-

.

Continued

-

on page

,

The

members

represented

this

of

Governors

of

on

this

the

District

Board of

Association

We

by

are

pleased

to announce

Harold C. Patterson, Auchincloss,

5.9

Parker

25,000

3.8

D. C.

10,000

3.1

ing conclusions concerning the stock market levels

or

its future.

,

Horace

quantitative valuation of issues; vitally accentuates

has

an

opening for

Chicago territories.

acquaintanceship
Positions entail
and

salesman

in

both

good
New

following

John

York

cago,

traveling with

Good future

for

G.

Beutel,

Carl

Oelkers,

a

Francis

both of the

native

of

been

as

right

paid.

man.

in

since 1928.
"
native of Spring
Y., joined the bank

Beutel,

Valley,

Salary

State

General Partners in

our

firm.

Chi¬

N.

a

KIDDER, PEABODY Sf CO.
FOUNDED

1935.

sjftembers
expenses

J. Cunningham

Oelkers

has been with Manufacturers

Mr.

or

and

age
(Special
.

to The

Financial

is

now

Hornblower
Commerce

&

affiliated

Weeks,

Building.

EKjcvj YorkJCurb Exchange

Exchanges,

>

Chronicle)

CLEVELAND, Ohio—Edward J.
Polak

1865

ZK^tzv York, Tjostov and zJlOJwfst Stock

Joins Hornblower Weeks

Box S 124 Commercial

Chronicle, 25 Park Place, New York 7, N. Y.




that

Trust Company

and

dealer-broker firms helpful.

and full particulars in confidence.
and Financial

with

Knowledge of securities business

among

some

Commission.

a

house

Robert C. Johnson

Flanigan,

Securities Department, have
named Assistant Secretaries.
Mr.

publishing

C.

announced

and

established

sherlock hibbs

President
Manufacturers Trust Company,

has

Salesmen Wanted

the admission of

Washington,

Announces Promotions
of

Long

Redpath,

Manufacturers Trust

-This tax-exempt situation carries implications far transcend¬

It affects the

&

with

Union

The

dim for all except very high priority uses,

since mill allotments have been getting smaller.
"

Arm¬

Armstrong takes "office

Chairman

50,000

-

or

Tax-Exempt

8.1%

__________

as soon as

this week

vacan¬

promise to relax controls, product by
feasible,A decision is expected to be reached
whether to lift controls on these products completely,

show of good faith on its

three years to

Vice-Chairman:

are

$100,000

supply is not yet close to demand. That goal is still at least several
months beyond attainment, possibly longer, it adds.
But the chances are the government will soon be able to make

product,

strong, Stein Bros. & Boyce, Balti¬
more, Maryland. <
•
•• ";'
> v
:

to Return Equiv.

'

Recipient of:

,,,

in

Lukens, Jr;/ Robinson & Lukens,
Washington 5, D. C. i
f
^ '

table, showing?*the>gross market yield which i$;needed; from
from

supply.
V '■' /
:v,
Purchasing agents are admittedly buying more cautiously, this
authority notes. But their consensus seems to be that overall

trade

a

J.

use

on

demand,

of

Edward

industry this week, surging steel production and
are
narrowing the gap between supply and

the steel

for

elected:

v

Monday of this week it was reported by the

restrictions

by the expiration of

Chairman:

■

able

created

cers were

2.6

•

tighter pro¬

tighter in January than in November. These were Orlando,

On

Hagan, Inc., Richmond, Va.
At a meeting of this Committee
held Jan. 22, the following offi¬

.

1.3

2.1

The before-and-after-tax situation is also

;••

as

Fla., and Peoria, 111.

area

..

50,000

v

"

;.

On Dow-Jones Average of 40 Bonds
;

materials short¬

Michigan received the main impact, according to the "Bureau,"
three cities, Detroit, Grand Rapids and Flint, listed among
the 16 areas. In only two of 174 areas were labor supplies classi¬

G.
Fenton
Cramer, Ferris &
Company, Washington, D. C. and
John
C.
Hagan, \ Jr.,
Mason-

the Dow-Jones Industrial Average

The comparative returns on bonds follow:

'

-

duction controls.

the terms of;

the yields would be reduced by 0.25% on both calculations.

•

earlier.

report

slow consumer demand for some products and

ages,

fill the

1.9

____„

50,000

:

current

term

Return

On the stocks comprising

1 % above the level of a year

rose

The main reasons for this upward trend were

securities

industry

Ills "Take-IIorae"

a

-

week revealed
benefits rose 21%
higher than the like period of 1951. Continued

20%

were

A

o

the

*

$100,000
75,000

j

and

mmittee,
representing

Average

Total-Income

Recipient of:

in a

Fur¬

The nation's employment situation in the latest

to the District

the

of

On Standard

again resulted

that initial claims for unemployment insurance

Company,
Richmond,Va.,

illusion

week

War II.

&

istically calculating the Federal (excluding State) tax-take, trans¬

'

was

World

Lemon

68

___.

elected:

Harvey B.
Gram, Jr.,
Johnston,

Top 25% Segment of

v

beautiful

last

close to 10% below the all-time high record set during

ther, it

fied

■

mere

effort

industrial

moderately higher level of output than that of a year ago.

try in the past two months.

&

Elects Officers

rities, following are the percentages taken in tax from the segment
receipts from stocks and bonds, according to the 1952

"

Failures

from the United States Department of
Labor's'"Bureau of Employment Security," discloses that idle
labor pools have shown a substantial rise in 16 areas of the coun¬

NASD District No. 11

A. Wilfred May

of his gross

,

Production

with

yield of corporate distributions in
a form not reaching our pocketbook, assuredly is fictional.
Assuming that 75% of the average investor's income
from salary and 25% secondarily and discretionarily from

75,000

Industry

Price

Auto

Business

claims

Rosenberg, who joined Naess &
Cummings in 1943, became a part¬
ner
in the successor firm, Naess,
Thomas & Thielbar on Dec. 1,1951.

the market

w.

Index

Food

and

Naess

in¬

On the premise that investing, including
value-judgment, under any approach or tech¬
nique, is predicated on income, calculation of

7

Commodity Price Index

away

Rosenberg who is becom¬
ing a partner in Cohen, Simonson
&
Co., was not formerly with

Realism About Yield

(Married Man

State of Trade

Trade

David

gross

vesting policy, as well as ever more important
implications for the security markets and the

Joint Net Income After

Output

Carloadings
Retail

have since been informed that the

in¬
receipts taken by Uncle Sam has defi¬

come

quest

reported that David
Rosenberg, formerly of Naess &
Cummings, on Feb. 1 would be ad¬
mitted to partnership in Cohen,
Simonson & Co., members of the
New York Stock Exchange.
We

imposts must be faced with realism

inexorable

their

Production

Electric

com¬

Nation-wide
the

Jan. 17 it

by the individual investor.
The

the

Steel

•■The

■

Correction

secularly higher levies, the actual effects

of present

income,

recurring income to capital-

In

whether the long-term future has in

or

equities
less tax-

gain operations.

stressing of his reduced take-

the present Congress will hold the line on tax

hikes,

move¬

of

by the wage-earner,

organized and
unorganized, as well as by the company executive in reporting to
the shareholders; the investor too often wishfully neglects to cal¬
culate the actual impact of taxation on his
dividend "take home."

lower

transform

from

Take-Home Pay

In direct contrast to the voluble

home pay figure these

fund

distributor

munity; and increases the pressure
on
the higher-income recipients
to

s

mutual

burdened individuals in

By A. WILFRED MAY
The Investor

and market impor¬

the

ment

Observations.

of

5

New York.

Boston

Philadelphia

Chicago

37

6

The Commercial and Financial Chronicle

(370)

Business and Finance
The following are some of the opinions On
the business outlook for the present year

f
'

which, for various reasons, could not be ac¬
commodated in

Others

ANNUAL REVIEW and

our

ISSUE

OUTLOOK

of

Thursday, Jan. 17.
published in subsequent

be

will

defense

this

of

program

are

tremendous

LYMAN

its influence is very widespread.
As we go into 1952 the status of the defense program
will change from the transition period of 1951 to one
of actual production, accelerating as the year wears on.
We will progress from a period of deep uncertainty,
which brought with it large scale unemployment with
its attendant anxieties to
unemployed and employed
and

consequence

a

as

HERBERT

and Insurance

led

was

believe

to

would

we

full

have

em¬

It resulted in fear—fear to the
those who were wondering when

ployment with overtime.
Current

situation

make

it

in

conditions

confused

the

>.

unemployed

business

general

difficult to do much in the way
•of detecting probable future trends.
What is only a
Tumor
today may become a government regulation to¬
Due to the constantly chang¬

morrow.

ing

very

the defense pro¬
in the allocation
be expected for
come.
It may be well

exigencies

of

time

some

to

that

remember

to

is

1952

of

that

national

our

the

cloud

picture

urgent need of repairs and

replace¬
Expenditures for these pur¬

Herbert

Abraham

poses are not

struction

have

been

substantially

to homes costing up to $12,000 thus
.sales in that large field.

Defense construction

ket for

residential

con¬

relaxed with respect
tending to stimulate

are opening up a mar¬
building and insulating mate¬

rials.
The farm

building market is favorable, due to current
prosperity in rural areas, Government subsidies, and
active demand for agricultural products.
It has been
predicted that the spending by farmers in 1952 will

for the increase in population. In a recent statement the
"Director of the Census estimated that in the 10 years

following 1950, the population of the United States would
increase by 29,500,000.
Among the highlights of progress in the field of Ruber'

to

cars

The

one

in

research,

1951

was

a

achieved,

success

through

in

enhancing the appearance of an increas¬
ingly important item in the building materials field
-asbestos-cement siding.
As a result of this develop¬
ment, there has been added to the other advantages of
•asbestos

siding, the ability to meet the mounting popular
for truly tasteful color
styling of the exterior

demand

walls of homes.
On

the basis

of

A.

E.

belief that 1952

my

particularly for Hudson.
mumber
-offer

of

things

better

mium

priced

I also

in

will

This

be

a

belief

primarily
value

is

based

because
because

year,

upon

Hudson
we

will

a

will
offer

been confined to pre¬
models
at
regular
—

coupe

believe that

"a confused state of affairs."
not
surprising when

mobile production.

you

W.

the

furniture

consider
of

1951

for

bewildering variety of imponderables. Perhaps it will
help a little to separate the picture into the three cate¬
gories which influence profit and loss in. a retail busi¬

season

a

to

cause

creases

and

of

These

for

sums

fear
and

A.

protec¬

E.

expense.

disposable income should be distinctly favor¬

to

high volume. However, this has been true for
time, but has been accompanied principally by

some

not

some of the overstocked condition of
resulting from the post-Korean wave of buy¬
ing may still exist. But in point of fact, how much of
this buying was really the last gasp of the unsatisfied
demand pent up during World War II?
Especially in
consideration of the substantial reduction in home build¬

abated, while

were:

the

start

of

the

upon

The government would

purposes—large enough
individual earnings would

include overtime pay; cost in¬
excise taxes would create in¬

even

increasing

articles

like

the

living habits.

automobile,
*

V"

essential

to

*

These expectations were valid thbn and
in fact they
still are—every single one of them. What
has since

pened simply amounts to

a

hap¬
postponement due primarily
As you know, the

to the delay in the defense
program.




•

'r'.

.

/

be remembered that durables are what economists call a

postponable
in

purchase.

Still

factor is

another

that,

at

metal

goods, some shortages seem likely later
in 1952.
So, if the desire to purchase increases again,
will the goods be available to meet it?
Frankly, I do
not anticipate any sizable increase in volume in 1952,
least

that,

as

the arms program hits its

tion will inevitably result in a higher cost-per-loss
accidents under their policies and

from

in mounting expenses

for

maintaining the all important inspection and engi¬
neering services on which so much of the value of en¬
gineering insurance depends.
Such hopes as were entertained a year ago that there
would be a leveling off or even a decline in the prices
of materials and labor needed for effecting repairs did
materialize.

not

The

inflationary trend con¬
still gives little evidence of
having run its course. Until it does, property damage
cost-per-loss under boiler and machinery policies must
logically be expected to increase.
through

1951

upward

and

Aside and apart

from its effect on loss payments, how¬
inflation is proving of concern to the boiler and
machinery underwriters because of the lalrge staff of
skilled engineers and inspectors which the peculiar na¬
ture of their business obliges them to maintain.
The line
ever,

differs from most others in this respect, and

major

field

insurance

of

does

in

no

other

large a share of the
premium dollar go directly into services aimed at pre¬
venting accidents to the policyholders' equipment. Sal¬
so

aries and traveling expenses of these staffs have been
greatly affected by inflation.
The fact is that today's high cost level is putting on

the

business

rate level

much

a

heavier

burden

than

the

current

designed to.bear.
In acknowledgement of
this, applications for higher rates have been filed with
was

the insurance departments of the several states.
of these

ance

filings is

now

Accept¬

being awaited.

JAMES R. DAVIE

President, Albany Savings Bank
The country's economy is so closely tied into the de¬
fense effort that it is impossible to discuss one without
the other. 1952 promises to be a year of full employment
although the curtailing of some consumer's lines
produce spotty areas of unemployment temporarily.

may

The
all-time high
but to the individual this will not be significant, for
larger taxes and further increases in the cost of living
will tend to minimize any additional income.
Unless
the government strengthens price and wage stabilization,
costs of all commodities should be higher in 1952. These
measures
are
only expedients but would help tempo¬
rarily.
The expected increase in the production of defense
national

items

income

well

may

reach

a

new

will, in all probability, create

a

national budget

deficit of several billions of dollars which will not help

inflation down. Inasmuch as 1952 is an election
no serious effort will be made to reduce govern¬

keep
year,

mental expenses, which is in line

There is

no

altogether different

single item of cost in business which

has

still

further.

For

time, this condition

concealed
by continual increase in volume, but that day is over.
Unfortunately, only a relatively small part of expense is
directly controllable in a retail store.
The biggest single
item, of course, is payroll and yearly (or more frequent)
increases in the price a retailer must pay for the same
or

a

less service have become

habitual;

was

is

change
the
rental dollar buys less square area; and so on throughout
the entire gamut of expense.
Between steady volume
at a fixed mark-up and
continually rising expenses the
average retailer is caught in a squeeze the seriousness
of which cannot easily be
exaggerated.
likely in 1952.

In

short,

it

Advertising

is

difficult

furniture and home

money

to

see

nor

any

buys less space;

very

high

profits

furnishing retailers during 1952.

a

for

been

perative
we

that

some

to. avoid

are

the

with the pattern which
20 years.
It is im¬
action be taken in this respect if
further drift to "statism."
We talk

established

about inflation

future.

a

for

if it

as

Actually

the

were

policies
of

a

past

something to be avoided in

have it

we

Also, it is inconceivable that

has not increased and which does not threaten to increase
At

defense

inflation;

would

"

judge when and whether the pendulum will begin
swing the other way is almost impossible.
It must

Brainerd

B.

The companies should have no difficulty in obtaining
satisfactory volumes of premium in 1952. But they may
find a source of serious concern in that continued infla¬

ing, are we now operating in much more of a normal
replacement market than we have experienced in many

picture.

.

current

margin and

the? most complex. The continuing

The expense category presents an

public buying to escape price
increases; civilian
production
would
be
restricted,
thereby
promoting
of

volume,

higher savings. Apparently psychological resistance to
the price level and general feelings of insecurity have

Barit

creased

■scarcities

are

So far I have discussed only mark-up; the severe
occasioned during 1951 by too high inven¬
tories will probably not be repeated in 1952.
As a con¬
sequence, it may be possible to maintain and perhaps
even slightly improve gross margins.
v

industry generally laid its plans based

huge

increase

the

of realization.

year

certain expectations.
spend

These

The first of these is
increase in

inevitable

prices.

Briefly stated,

economy.

be

of what business will be like in the
furnishing field in 1952 involves a

home

Lyman

which this branch of the insurance

mark-downs

a

planning

will

and

seems

tinued

President, Ludwig Baumann

prediction

the

the kinds

are

*'

'

,

(

BAUMANN

are permitted to take into account many items
rising cost, the latter may only utilize rises in what
they pay for the goods they sell. However, at the present
time the effect of price control is relatively small. Many
if not most kinds of goods are selling well below ceiling

This is

framework

government

1952

S.

of

inflationary program there
"have developed
deflationary tenden-.
-cies. This situation
certainly proves
the importance of careful
our

-

the
elec¬

are

rearmament effort.

Stratojet fuselage;

B-47

the former

iiighly

tion of

the

and

stride, heavier and heavier burdens will be put upon
power equipment, and this will mean for the insurance
companies not only expanded opportunities for larger
writings, but also the responsibilitity for reducing out¬
ages on power sources which are vital to the nation's

sub¬

course, frozen by price control.
Here
distinguish between present price con¬
trol rules for manufacturers and those for retailers; while

cently and invariably they start out
"by referring to the 1951 situation as

our

of

this power

of

equipment with
It

contracts for the manufacture

it is important to

Tiumber of people on this subject re¬

■by

sections

which

full

.

very

Mark-up is, of

will operate

we

healthier atmosphere, econom¬
ically speaking. I have queried a

within

two

■

.

is

program

particularly during the early part of the year.

prices.

a

4,hat

has

Hudson

1952.

contract

engines

apparatus

industry deals.

production will not interfere with our authorized auto¬

to

good

very

of

and

power,

turbines,

trical

engine: and one for the manufacture of the rear fuselage
jet B-57 Canberra. Defense

able

requires

boilers,

and tail sections for the twin

ness:

machinery insurance will find
continuing strong demand for their
Obviously, industrial pro¬

duction

produce

To

styling —the kind that

now

■sedan and

but

value—better

outstanding
has up to

in

demand

defense

time

production,
industrial pace that char¬
1951 should again prevail.

services.

quarter is

per

take

arms

and
a

major components for the R-3350 Wright aircraft

years?

BARIT

President, Hudson Motor Car Company
is

to

forward

Any

high

to

If it does, the underwriters of boiler

breeding

the

consumers

existing conditions in all business, it
Is my idea that what will be
principally required to
maintain and strengthen
activity in the building products
industry in 1952 will be a lot of real "shirt-sleeve
■selling."
\ <

It

cars

expect

the

meet

for

'

products

million

Hudson

the

of

slightly exceed the record of 1951.
Taking a long-range point of view, it should not be
overlooked that this is still a rapidly growing country
^and that shelter must, therefore, be
constantly provided

-oid

is

the

industries

some

convert

acterized

the most
during the next
year.
This represents a sharp curtailment. Some, fore¬
casters point to the upwards of forty million cars now
in use as an argument that we require less production of
automobiles. That might be true if cars were rationed,
but as long as people are free to buy/ I believe the
large number of cars in use means an even greater
potential demand. 'As a general rule people do not
willingly give up the automobile once they start to use
it. Putting the matter bluntly, there will not.be enough
one

can

industry

stantial.

projects

wide variety of

a

new

on

and

to

sources

Apparently

the

mulation of buildings of all kinds in

-

fear

of

out

•'/

ago.

situation in the building
materials industry reveals a number
of encouraging features.
/ '
In this country today, there exists
a huge
and rapidly mounting accu¬

restricted.
Government credit restrictions

horn

while

or

the defense program also
brought shock and uncertainty to another segment of
the buying public—men who operate their own busi¬
nesses.
This undoubtedly had a serious effect upon the
spending habits of such people.
Certainly a state of

gains momentum, as the emo¬
uncertainty fade out of the pic¬
ture, business will improve and we will then realize the
full employment promised us by the government a year

the present

ments.

goods because of material shortages,

the delay in

of

As the defense program

analysis of

economy,

to

come.

tions caused by fear and

an

However, notwithstanding the many

uncertainties

results

uncertainty
ground for deflationary tendencies.

selection year.
-

and

would

turn

The

mind

gram, adjustments
of materials may

.also

their

Company

assumptions, and thus it involves some degree of guess¬
work.
However, it is now generally expected that the
arms
program will reach its peak
some time
during the latter half of
the year. If the intervening months
bring no serious reduction of total
industrial activity through a slacken¬
ing off in the production of consumer

a

he

where

ABRAHAM

President, The Ruberoid Co.

BRAINERD

Any prediction of how the boiler and machinery in¬
surance
industry will fare in 1952 must be based on

clearer economic outlook.

issues.—Editor.

B.

President, The Hartford Steam Boiler Inspection

period of more sustained employment and a
It is not easy to visualize the
shock to the average worker caused by unemployment
alike, to

'

Thursday, January 24, 1952

.

Speaks After the Turn of the Year

ramifications

MORE BUSINESS FORECASTS

..

now.

our

present governmental

continue indefinitely without the possibility

can

severe

economic

upheaval.

only

The

question

is

when.
Mr. Truman has

office than

was

spent

more money

since he has taken

spent in the entire history of the coun¬

prior to his Administration.
In other words, in
period of seven years he has spent more than all his

try
a

including Mr. Roosevelt, spent from

predecessors,
to

1945.

end

of

serious

In

1835

there

1950 the debt

effort

was

was

no

over

Federal

$1,700

debt but

per

1789

at

capita and

the
no

is

being made to reduce it. Continuance
of this heedless policy of spending means only debt re¬
pudiation in some form. It is late and getting later.
Let us pray it is not too late.
Continued

on

page

26

Volume 175

Number 5084

The Commercial and Financial Chronicle

...

(371)

7

•

+

'

.

,

lic authorities might use such leg¬

Sweden Holds Free Government in

Jeopardy
When Identity of Financial Contributors to
Political Parties Becomes Mandatory

as a pretext for interven¬
ing against papers which they re¬
gard as offensive.
,'

The

question

whether

of

the

nancial
mestic

election campaigns, as well as that
of
newspapers
and
magazines,

be

committee

should

filing

ing

of

swered

require

an

statements
in

ernment

the

has

investigating
Such

cording

the

to

been

negative by

in Sweden.

not

obligatory fil¬

a

a

tributors

an¬

gov¬

legislation,

safeguard Swedish public dis¬
and opinion against for¬
influences.

*

who

Anyone

is

willing to accept foreign support
may

also

be

expected

to

file

further

the

holds, and a
of the con¬

names

actually conflict
principle of secrecy of

ballot.

A

mere

future.

listing of the

4.6

and

in¬

accurate information about the fi¬

2.5

would be meaning¬
obligatory filing of sim¬

ilar financial statements by news¬

volve

magazines

and
risks

the press.

the

for

In extreme

1.7

and

0.9

ship

owned

and

was

announced

the Bond

talk

by James

Hutton &

it

J. Lee,

Co., President of

that

press

197

Mr. Jackson will

Club.

mutual

Peabody

by incorporated stock

115

several

with

has become

Hendrickson

Broadway,-

tions, and 32 by private individ¬

Exchange,

as

uals.

tative.

with Eastman Dillon & Co.

S.

members of

City,

New

York

Stock

•

registered represen¬

of

crash

Hernon,

City,
the

Pearsall & Co.,
was

killed in the

American

a

solicitation oj an ojjer to buy securities.

bond counsel to the Authority and of counsel to the Underwriters,

and court decisions from Federal income taxes, and by virtue of

Triborough Bridge and Tunnel Authority Act from New York State income taxes.

$215,000,000

Triborough Bridge and Tunnel Authority
General Revenue Bonds, Series A
(Maturing semi-annually 1957 to 1969, both

Of these
are

inclusive)

$215,000,000 Bonds, $159,000,000 Bonds, consisting of the respective principal amounts

and maturities shown in the following table,

Underwriters and are being offered by them at the prices shown in the table. The remaining
being purchased from the Authority by certain banks and are not included in the Bonds being offered by the Underwriters.

being purchased from the Authority by* the

$56,000,000 Bonds

are

Prices

as

shown below

plus accrued interest from January 1, 1952
Price to

Price to

■

Yield to

Interest

Principal

'

Rate

Due Date

Yield to

Amount

Due Date

Rate

July 1, 1957

1%%

1.45%

Jan. 1,

1%

1.50

2,985,000

Jan.

5,360,000

July 1, 1962

2' \

2,310,000

Jan. 1,

1963

2

1.95

Amount

$3,295,000
3,325,000

1958

Maturity

•

,,

$8,010,000

1.85%

1%%

July 1, 1961

$4,810,000

.

Due Date

•

Rate

,

Jan. 1, 1966

2'/8%

Maturity
„l

2.10%

'

■:

2.10

8,185,000

t

21/s

Jan. 1, 1967

2'/S

2.125

July 1, 1967

2%

2.125

Jan. 1, 1968

2»/8

2.15

8,435,000

1.90

"

July 1, 1966

8,360,000

l

8,085,000

8,260,000

1.90

13/4

I,1962

July 1, 1968

2Vs

2.15

Jan. 1,

1969

2«/8

2.20

July 1, 1969

2'/s

2.20

July 1, 1958

1%

1.55

3,450,000

Jan. 1,

1959

1%

1.60

3,400,000

July 1, 1959

l3/4

1.65

6,885,000

July 1, 1963

2

1.95

3,850,000

Jan. 1, 1960

13/4

1.70

7,285,000

Jan. 1, 1964

2

2.00

3,625,000

July 1, 1960

13/4

1.75

7,760,000

July 1, 1964

2

2.00

6,535,000

4,860,000

Jan. 1,

I3/4

1.80

7,835,000

Jan. 1,

1965

2Vs

2.05

20,910,000

7,910,000

July 1, 1965

2%

2.05

4

3,275,000

v

'

1961

!

"

■

:

Copies of the Circular dated .January 22, 1952, which contains further injormalion, including the
Official Statement of the Authority, may he obtainedfrom such of the undersigned {who arc among
the Underwriters) as may legally ojjer these securities under applicable 'securities laws.

I

Dillon, Read & Co. Inc.
The First Boston Corporation

Lehman Brothers

Eastman, Dillon & Co.

Blair,Rollins & Co.
Incorporated

W. C.

Yield to

Interest

Principal

Maturity

Interest

Principal, 1
Amount

■

•

_

Hemphill, Noyes, Graham, Parsons & Co.

Equitable Securities Corporation

Shields & Company

R. W. Pressprich & Co.

i

Lazard Freres & Co.

Goldman,Sachs & Co.
■

Stone & Webster Securities Corporation

Salomon Bros. & Hutzler




GIore,Forgan&Co.

'

Langley & Co.

Drexel & Co.

Blyth & Co., Inc.

■

Smith, Barney & Co.

Harriman Ripley & Co.
Incorporated

Kidder, Peabody & Co.

Ladenburg,Thalmann & Co.

,

Union Securities Corporation

C. J. Devine & Co.

White, Weld & Co.

Merrill Lynch, Pierce, Fenner & Beane

Barr Brothers & Co.

Reynolds & Co.

A. C. Allyn and Company
Incorporated

L. F. Rothschild & Co.

*

.

Airlines

been,

business trip to Rochester.

January 23, 1952

the

in

Exchange

Mr. Hernon, who was 62, had

New Issue

under the existing statute

partner

Stock

Convair, at Elizabeth, N. J., Jan. 22.

on

.

..

of

New York

Co.,

York

the

firm

asso¬

&

Hernon,

York

New

the

New

.

Interest exempt, in the opinion of

years

associated

William S. Hernon

Carden

John

ciated

depart¬
who joined

"Organization of National

on

With Hendrickson & Co.

owner¬

as up¬

fund

previously

was

William

A

appoint¬

of that firm's

Mr. Washburn,

Kidder,

Intelligence."

newspapers

or a

York

ago,

Stock Ex¬

the

George Washburn

town sales manager

New

6,

& Co., mem¬

New York

announce

ment of

ment.

Feb.

Wednesday,

on

W. E.

Liberals

million.

1.2

ojjer oj securities jor sale

an

change,

Club

companies, 19 by other organiza¬

pub¬

luncheon

Peabody

bers of the

meeting to be held at the Bankers

the Agrarians

Swedish

shows

are

a

Kidder,

million, and the Com¬

2.1

of

Bond

the

address

Club of New York at

of

freedom

This announcement is not

kronor

will

in¬

might

cases,

million, the

1.8 million,

By Kidder, Peabody

former

Jackson,

Central Intelligence

the

Agency,

Conservatives

million

and

survey

hand,

papers

4.1

4.9

other

An

The

6.8 and

munists

less.

parties voluntarily
information
about
in¬

respectively, the Social Democrats

would

the

the

spent

contributions,
without
mention¬
ing the donors' names, on the

ac¬

would

cussion

eign

with
the

committee

committee,

of

in

in

Smith

expenditure, etc., dur¬
ing
1948, when
elections were
held, and in 1949, and such data
do¬ probably also will be furnished

ought not to
objectionable, the

as

-

H.

Deputy to Lt. General W. Bedell

and

come

contributions

branded

;

The political

Anonymous

setup.

financing of political parties and

William

Statements

supplied

Washburn Appointed

To Hear Jackson

.

.

Folitical Parties File Voluntary

Concludes mandatory filing of names

of political contributors
conflicts with principle of secrecy of ballot and that obligatory
filing of similar financial statements by newspapers and
magazines might abridge freedom of press.

New York Bond Club

islation

Phelps, Fenn & Co.
Alex. Brown & Sons

B. J. Van Ingen & Co. Inc.

8

The Commercial and Financial

(372)

Dealer-Broker Investment

Faroll &

send interested parties

to

Minerals

Stocks

stocks

the

on

cash dividend

Stock

Dividends

New

York

Stock

—

Brochure

Stocks

pleased

New York

Exchange that have paid a
104 years—New York

value

gross

of

all

tractive

now

Does

A

Stock

&

Co.,

25

Broad

61

Exchange Broker Earn His Living?—Dis¬

Market—Bulletin with

lehem

Bank

Stocks—Year-end

17 issues—Laird, Bissell &

New York 5,-N. Y.

'.7

.

comparison and

Byllesby

M.

Steel

&

Jan.

Co.,

Also available are data

on

Boston

9, Mass.
King Railway.

available

Also

Beth¬

Jan. 30,

Co., 148 State Street,
on Thermo

1

Wall
low

issues

an¬

La

Street, New York 5, N. Y. Also available is a list
priced stock suggestions and a list of 40 selected

selling at discounts from the 1951-1952 highs.;
Inc., 32 Broadway, New York 4, N. Y.

pany,

Club

of

Forum

the

at

Hotel.

(Chicago, 111.)

Meeting

of

of

Board

Governors of Investment Bankers

Association

.

•

the

at

Edgewater

Beach Hotel.

Feb.

11, 1952 (Boston, Mass.)

Boston Securities Traders Asso¬

Averages, both as to
performance over a 12V2-year period—
National
Quotation Bureau, Inc., 46 Front Street, New
York 4, New York.

ciation

market

the

NSTA

Railroad Bond Exchange Suggestions—Bulletins No. 79 and 80

annual

Winter

dinner

at

Copley Plaza Hotel.

April 18, 1952 (New York City)

Security Traders Association of

-

—Smith, Barney & Co., 14 Wall Street, New York 5, N. Y.
Rails—Possible

Exchange

Analysts

Midwest

Salle

Winter

Wyoming Gulf Sulphur Corporation—Circular—J. May & Com¬

Meeds, 120 Broadway,

&

(Chicago, 111.)

Feb. 8-9, 1952

C

.

Haven

Stock

of

1952

Fourth

Warner Brothers Pictures—Bulletin—Francis I. du Pont & Co.,
of

(New

Conn.)

of

used in the National Quotation Bureau

and

1952

Chicago and National Federation
Financial
Analysts Societies

information

is

North Lake

666

Firms winter meeting.

Wall

36

Over-the-Counter Index—Booklet 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

yield

28-30,

Hartford,

Johns-Manville.

and

Chicago
at the

-

Association

Oil—Bulletin—Bache

&

Club,

party

and

& Company,

F. Hutton

U. S. Thermo Control—Data—Raymond &

a

City Bank Stocks—Comparative figures as of Dec.
31, 1951—The First Boston Corporation, 100 Broadway, New
York 5, N. Y.
City

Furniture

of

Club

midwinter

Investment

New York

York

Coal

(Chicago, Hi.)

Shore Drive.

Corporation—Analysis—H.

Street, New York 5, N. Y.

Luit-

comparison of Canadian Bond Prices
and Yields—Western City
Company, Ltd., 544 Howe Street,
Vancouver, Canada.

alysis of

Co.,

Broadway, New York 6, N*. Y.
Pacific

Baltimore Hotel.

Lord

Traders

Bond
annual

Company, Inc., Ill Broadway, New York 6, N. Y.

Texas

cussion of the services offered by the broker—Bendix,
weiler & Co., 52 Wall Street, New York 5, N. Y.

New

Wells

the

at

Jan. 28, 1952

5, N. Y.

Studebaker Corporation—Analysis—E.

Securities—Bulletin—Oppenheimer
Street, New York 4, N. Y.

sociation 17th Annual Winter Din¬

Building, Rochester 14, N. Y.

Struthers

the "cost-of-living"

(Baltimore, Md.)

1952

Baltimore Security Traders As¬

Broad and Arch

Co.,

Seneca Oil Company—Analysis—Genesee Valley Securities
Powers

Room, Roosevelt Hotel.

Jan. 25,

outlook.

Inc., 120 Broadway, New York

Traders

ing and mid-winter dinner at the
Blue

Security Banknote Company—Special report—Bonner & Bon¬
ner,

Securities

Association annual business meet¬

ner

dollars.
German

v

Co.—Bulletin—Orvis Brothers

Soundcraft—Report—Hecker &
Streets, Philadelphia 7, Pa.

gross debt

compared to

Gas

&

Reeves

of the U. S. personal
national product, bank deposits and market
shares

vV

'

.-■>

Electric

1952

Field

(Pittsburgh, Pa.)

1952

Pittsburgh

Co., 14 Wall Street, New York 5, N. Y. Also in the same
bulletin is a brief analysis of Sinclair Oil Corp., and a list
of 40 Common Stocks in eight industry groups with an at¬

Averages—Charts

listed

Jan. 21,

Also available is information on Hercules

/7V7'

&

Labor—Oppenheimer, Vanden Broeck & Co., 40 Exchange
Place, New York 5, N. Y. Also available are six graphs of

income,

Investment

report—Kidder,

progress

17 Wall Srteet, New York 5, N. Y.

5, N. Y.

Service

Public

for

circulation, total

EVENTS

'

Inc.—Analysis—Dean Witter & Co.,
14 Wall Street, New York 5, N. Y.

common

covering an 11-year pe¬
riod of the industrial averages and also a comparative graph
of the industrials adjusted to the cost-of-living index issued
by the Bureau of Labor Statistics of the U. S. Department of

U. S. Dollar

COMING

—

Also

North American Aviation,

of

in every year for 20 to

Stock

Memorandum

Central—Data—Stanley Heller & Co., 30 Pine Street,

New York

Investment—Tabulation—Eastman, Dillon
Co., 15 Broad Street, New York 5, N. Y.

Dow-Jones

—

Poor & Co.

on

Company—Detailed

Peabod.y & Co.,

Exchange, 11 Wall Street, New York 5, N. Y.

Common
&

Cash

Corp.

In

Power

Montana

the following literatures

and

memorandum

a

Powder.

Common

Chemical

&

Co., 209 South La Salle Street, Chicago 4, 111.

available is

Recommendations and Literature
It is understood that the firms mentioned will be

Co., 231 South La Salle Street, Chicago 4, Ill%

International

Thursday, January 24, 1952

...

Corporation—Analysis—Weinress

General American Transport
&

Chronicle

New

action—Walston, Hoffman & Goodwin, 35 Wall

annual

York

Waldorf Astoria.

dinner

at

the

>

Street, New York 5, N. Y.
Taxability
\

of Dividends

Paid

in

1951

Investment

on

Street, St. Louis
-

A.

M.

-,

I.

1,

7:4;77

Mo.

>

500 Fifth

B.

Motter

&

Associates,

4, 111.

American

&

Foreign

Power—Review—Ira

American & Foreign Power
Co.—Analysis—Sutro Bros. & Co.,
120 Broadway, New York
5, N. Y. Also available is a review
of Columbian Carbon Company.

non,

Argo

Company—Analysis—Dayton & Ger-

105 South La Salle Street, Chicago 3, 111.
Oil

Corp.—Memorandum

Barclay Investment Co., 39
South La Salle Street, Chicago
3, 111. Also available are
memoranda on Central Steel & Wire
Co., Pickering Lumber
—

Corp., Plywood, Robert Gair Co., and Seismograph Service
Corp.
Canadian

Investment

Fund, Limited—Analysis—James Rich¬
ardson & Sons, 173
Portage Avenue, East, Winnipeg, Man.,
Canada, and Royal Bank Building, Toronto, Ont., Canada.
Carlisle
Corp.—Memorandum—Leason & Co., 39 South La
Salle Street, Chicago
3, 111. Also available are memoranda on
Churchill Downs, Firth Sterling Steel & Carbide
Corp., Hialeah Race Course, Jessop Steel Co. and
Narragansett Racing

*

Association.
Connecticut
Scranton

Light
&

&

Power—Descriptive circular—Chas

Co., .209

Church Street,

New Haven

W.

7,

Conn.*
Also available are circulars on United
Illuminating, Connec¬
ticut Power, New Haven Gas
Light, Hartford Electric Light
and
Gear

Hartford

Office
ups on
,

Gas.

Grinding

Texas

Hawthorne

Room

of

the

Parker

House

for all

out

of

Machine—Write-up—Lerner

& Co., 10 Post
Square, Boston 9, Mass.
Also available are writeNational Company, Riverside Cement "B," and Seneca

Committee

is

Sumner

Wolley

Other members of the committee

ing at the Hotel Galvez.

Springs, W. Va.)

of

Spring Meeting of the Board of

are

Governors

Bros.

Bankers Association.

D'Arcy, F. L. Putnam &/Co., Inc.; Lester Doucet, Salomon
& Hutzler; Alexander Moore, J. Arthur Warner & Co., Inc.;
and Wilfred Perham, Coburn & Middlebrook, Inc. (Boston).
Ticket reservations may be made with Edward Hines, Chace,
Whiteside, West & Winslow, Inc.; room reservations with Calvin
Clayton, Clayton Securities Corp.
Out of town reservations are in charge of Jack Hunt, Stroud
& Co., Incorporated, Philadelphia, Ed. Russell, Edelmann & Cap-;

New York City, and Gordon Libby, Coburn & Middlebrook,
Inc., Hartford.
per,

Security Traders Association of New York

ing League standing

as

TEAM

of Jan. 17, 1952 are
<

as

(STANY)
follows:

7

.

'

Bowl¬

June 6, 1952

Investment

(New York City)

Bond Club of New York
at

outing
Sleepy Hollow Country Club.

Sept. 28-Oct. 1, 1952 (Atlantic

City, N. J.)
American

Oct. 19, 1952
National

Points

(Capt.), Ghegan, R. Montanye, Krassowich, Manson -63"
Goodman (Capt.), Weissman, Farrell, Valentine, Smith___
51
51-.
Mewing (Capt.), G. Montanye, M. Meyer, LaPato, Klein_„
Bean (Capt.), Lax, H. Frankel, Werkmeister, Reid-—50
:
Donadio (Capt.), Rappa, O'Connor, Whiting, Demaye.«i__
46
Serlen (Capt.), Gold, Krumholz,"Young, Gersten____._-.^
45
Krisam (Capt.), Gavin, Gannon, Jacobs, -Murphy__i
44
LLeone (Capt.), Tisch, O'Marra,. Nieman, Bradley__
43 &
«.
Hunter (Capt.), Craig, Fredericks, Weseman, Lytle___
42-..,
Burian (Capt.), Siepser, Gronick, Growney, Kaiser___.^__
35^'
35
:
Greenberg (Capt.), SiegelKCohen, Strauss, Voccoli__-__..-;.
H. Meyer (Capt.), Swenson, A. Frankel, Wechsler, Murphy.
34
:
Kumm

Bankers

Association

ciation

(Miami, Flo.)

Security Traders Asso¬

Convention

Plaza Hotel.

at

the

7
>

Nov. 30-Dec, 5, 1952

(Hollywood, Fla.)

Investment Bankers Association
Annual Convention at the

5 MINUTES

FROM WALL ST.

200 Club

5 Point Club

Ricky Goodman _____214

John Donadio

N. Y/s

209

Walt

Mewing

offers foremost

208

Willie

Kumm

/

\

...

Cy Murphy

Carl H. Oilman With

facilities for

banquets

Gilbert Sharpies With

Lee

Members:

N.

Y.

Security

Dealers

Trinity Place, New
HA

2-2400.

Teletype

Private

wires

NY

N.

1-376;

378

to

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




Chronicle)

office parties

become

associated'

with

Lee

Outstanding

(Special to The Financial Chronicle)

CHICAGO, 111.—Carl H. Oilman
has

INDIANAPOLIS,
M.

Sharpies is

now

Ind.—Gilbert
with Reffen-

or

7th

small
Ave.

values-for

targe

groups! Clark St. sta.
IRT

subway in hotel.

Telephone MAin 4-5000.

^
'

La

Y.

377;

Financial

Higginson Corporation, 231 South

Association

York 6,

to The

meetings

Higginson Corp. Raffensperger, Hughes

(Special

Primary Markets

largest Hotel

202

200

Lytle

Bausch & Lomb

Troster, Singer & Co.

Holly¬

wood Beach Hotel.

Jack Manson

American Optical

Honey

•

"

A. Burian

74

the

of

Annual Convention.

SECURITY TRADERS ASSOCIATION OF NEW YORK

V.

v

Investment

May 14-17, 1952 (White Sulphur
Dinner

the

Coffin & Burr, Incorporated.

Falls Machine.

Telephone:

of

town

V

of

Group

Bankers Association Spring Meet¬

John

Haupt & Co., Ill

Broadway, New York 6, N. Y.

Anaconda Copper Mining

the

Chairman

Company, 231

May 1-2, 1952 (Galveston, Tex.)

ASSOCIATION

Security Traders Association will hold their 28th
annual dinner at the Copley Plaza Hotel, Monday, Feb. 11. Pre¬
ceding the dinner the usual luncheon will be held at 12:30 p.m. at
guests.

Avenue, New York 18, N. Y.

American Airlines, Inc.—Analysis—Sincere and
South La Salle Street, Chicago

TRADERS

The Boston

■

'

Incorporated—Bulletin—O.

SECURITY

BOSTON

Fund—

Tabulation—Taussig, Day & Company, Inc., 316 North Eighth

1

Salle

Street.

Mr.

Oilman

was

sperger,
North

formerly with McDougal & Com¬
pany and prior thereto was trad¬

of

ing manager
Cormick & Co.

J.

for

Kebbon,

Mc-

Mr.

Hughes

Meridian

the

Midwest

& Co., Inc., 20
Street, members
.Exchange.

Stock

Sharpies in the past was with

A.

White

cinnati.

&

Company of'Cin¬

HOTEL

st. George
Clark St.

Brooklyn, N. Y.

Bing & Bing, Inc., Management

.

Number 5084

Volume 175

.

The Commercial and Financial Chronicle

.

.

patient is to blame is too intricate
a question
to try to answer here.
is

By EDMUND C. DIXON, Economist

closer to heart of inflation.

with cost of living.

rise

not

Analyzes

Most speeches about the present

price
States

blame

in

inflation
it

increase in the
halt

To

the

ommend

the wage-price spiral in
difficult period such as 1946-7,
but
monetary
medicine
would

a

excessive

the

on

to have required a dangerously strong dose to have had a
chance of controlling that price

seem

money,

price rise, they rec-

two- or three-part pro-

a

to control
money-namely

quantity of

the

prevent

or

se-

verely limit further expansion of
bank credit or perhaps reduce the
present volume, balance the fed-

achieve a surplus,
refinance some of the
Treasury debt to get more of it
budget

or

and perhaps

out ot commercial banks and

into

revenue

stopped

United

the

quantity of

gram

eral

wage

from Treas¬
Criticizes labor union position regarding profits and
mentions advantages of different union policy.

ury.

.

Workers

General

at

much

v

Motors

a

_

effects

quantity of

labor

of

henceforth

the

unions

demands

rather

Second,

labor

for

the

from

than
of

U.

But

since 1940.

rise

S.
on

the

prices

of

further analy-

sis, most of the price rise seems to
been either brought on, or

have

finally settled for 18y2c an hour
in early 1946. Price ceilings had

raised

be

to

before

the

strikes

Those 18V2C set-

by a different tlements launched the first postTroublesome and; war
round of wage increases,
inflammable though it was, the After the end of price controls,
increase in money seems to have a majority of prices shot upward,
been partly a result of the second The resolution needed to curb the
force just referred to. It was also demand for goods
by achieving
largely what is sometimes called a large Treasury surplus
with
a conditioning cause,
rather than which to retire debt, would have
the main precipitating cause, of required converting the opinions
made

permanent,

driving

force.

of

inflation.

the

people

many

boom

postwar
to Reduce Prices

Dieting

the

...Concerning
doubts

and

conditions,

®f monly

•

all the criticisms.

Lead of Wage Rates

First

of

made to
according to this
were

virtually all of the increase in
money during the decade of the
ld40's.

current

s

withm reasonable

A{ffl„u„onocc

effectiy n s ,
limits, is uncer-

tain, because the doctors don t
really know how much mo e a y
-.
restraint is necessary to stop t
.

.

,

r

conditions:

under prese t

spiral

wage-price

—

demanding

of

poweiiul

Treasury securities,

and

unions

increases,

wage

of

of taxes

already jacked up as far as many

Since

foreign aid.

including
ey

postwar

surely

was

supplemented

additions

circumstances

a

declined $28 billion from the end
of

1945

to

1948.

December

Taxes

fact, so high in
personal income sur-

remained high; in
the

case

tax rates,
000

*

of

such

as

50% at the $16,91% at the

income level, and

on,

if

any,

explanation,

Supply

manufacturing.
.

,

Although

result

prices

inflation

of

the

of

side

the side of the

both

from

buying

goods
the

of

also from
of goods.

and

selling

such

all

their

payments,

rate

above

series

of

the
seems

pay

be

hourly earnings
It

rose

from

about

this

average,

to

although
10%

and

is

the

series

$0,556

available.

hour

in¬

be

could

three dif¬

ferent

This

increased.

price

series,

.

the" in¬

goods

•and the Workers' Cost of Living
There had to be "ration- Index
recently published by the
.ing by; the pocketbook.A The rise United Electrical, Radio and Ma¬
chine
Workers
ill
food
(known as UE,
prices ; has i caused the

prices.

could




most

111 Pdrt by

•

a

r00t

This announcemeiit is not

important

increase

Continued

the

in

on

page

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

an

The

huge increase in mon-

regarded as the
inflation, but which

now

the

Gf

$6,000,000

finally, by 1942, helped to end the

depression and unemployment.

The decade of the 1930's: such
appaxiing depression and unem-

Indiana &

it almost wrecked the
enterprise economic sys

Michigan Electric Company

ployment
prjvate

3M% Serial Notes, due 1956-1967

beln
did help brine on th<
bring on the
war
«n Europe through economic
misery an(j impotence, Within the
within thn
1930's, in 1937: following some re¬
.

tern

,

and

,.

.

toward

turn

orthodox

finance,

Dated January 1,
The Serial Notes mature

a

years

January 1, in the principal amounts of
$500,000 in 1961 and 1962,
$750,000 from 1963 to 1967, inclusive.

and

annually

on

MATURITIES AND YIELDS

of

increasjng domestic bank failures
gnd

(Accrued interest to be added)

f0reign currency devaluations1956

2.75 %

1959

2.95%

1962

3.10%

3.20%

market spec-

1957

2.85

1960

3.00

1963

3.15

3.20

advocates of

1958

2.90

1961

3.05

1964

3.175

3.20

crjseg

ulation

1920's: stock

which

1952

$250,000 from 1956 to 1960, inclusive;

precipitous relapse from a hardwon, incomplete recovery; and in
1933: collapse of the U. S. banking

following three

many

controls think brought
0n
the depression, though some
other writers say the efforts of
monetary

controls to check the
speculation
were
what
started the depression. In 1920-21:
bad slump, especially in agriculmonetary

TIre

stock

ditions

point to as a fairly successful example of their program was the
few

Prospectus may be obtained in any State in which this announcement is circulatedfrom only such
of the undersigned a)id other dealers as may lawfully offer these securities in such State.

HALSEY, STUART & CO. Inc.
DICK

again,

Perhaps the only period the believers in monetary controls can

MERLE-SMITH

&,

R. W. PRESSPRICH

AMERICAN SECURITIES CORPORATION

& CO.

AUCHjNCLOSS, PARKER &. REDPATH

& COMPANY

WEEDEN

INCORPORATED

INCORPORATED

years

have the outside complications,

or

the

L. F. ROTHSCHILD &~COr

&, CO.

SCHOELLKOPF, HUTTON & POMEROY, INC.
STROUD

WILLIAM

BLAIR &. COMPANY

.

GREGORY & SON

THE MILWAUKEE COMPANY

INCORPORATED

WM. E. POLLOCK
January 24, 1952

in

namely, the
resulted
in" intense buyer com¬ .BLS 'Wholesale price index, the
BLS Index of Consumers' Prices,
petition and consequently higher
supply

fn^*^^W°r^er+'
C?n+
'arf de^? be .traced b?ck to the
dllure 1

BLS

broadest

an

foods—to increase faster than the

fully

wage

from

wage

in manufac¬
turing total only about a third of

pressed irresistibly toward higher

costs.

more

the

of

some

did

price rise of 67%

between the recovery
$200,000 bracket, that normal pri- from the slump of 1920-21 and
vate
enterprise
incentives
are about 1927—5 years out of the last
turned almost upside down.
35. Even that period included sizIt is mostly guesswork to try to able business declines in 1924 and
tell
what
reasonable
monetary 1927. Whether the attempted diet,

controls,

labor

to

As will be discussed

small net surplus,
in
the new burden of
foreign aid. The quantity of mon- ture, which apparently took many
ey was steady.
Commercial bank years to repair. In 1919-1920:
holdings of Government securities sharp inflation. 1916-18, war conhad
spite of

budget

top line the rise in

hourly earnings in U. S.

average

asserts that the higher wages have

During the war:
abnormal conditions,

which is

Late

monetary
strict enough
not
to have caused the 50% price rise
from 1946 to 1950.
From 1946 to
the attack on Korea, the federal
S.

U.

normal

a

thoroughly

an(j

The

Demand and

on

This

;

years.

sys^em

under

salaries,

other

the

which

First, higher wage payments have 1936, which we have made equal
to 100 on the chart, to $1.60 an
caused
the
money
demand for
some
kinds of goods — notably hour in June, 1951.
by
The chart also shows

.

than victories,

croppers

high employment, and of the need
for huge armament expenditures

record

in the

at

I

and salary payments
Effects

to taper off again short of a

people think they can. go, of general -insistence
on
maintaining

and

shows

the monetary control
alone.

look

us

Chart

trols in the U. S. shows far more

seeln

easy

war

let

much smaller,
liiai ocner-factor is excessive
increases in hourly rates of wages
and

creased level of demand for

depression and unemployment. In
fact, the history of monetary con-

program

all

accompanying

than rely on

^

un-

After all,

on

caus/inflatifn

^gve had. Furthermore, without
jnat second factor, the increase in
mor,ey would itself have been

later

doubtful, befollow

is

program—i.e., with as little bank
borrowing as possible.
Yet the
government's
bank
borrowing
which was found unavoidable between 1940 and 1946 accounts for

The diet

manageability is

diet's

salaries

and

wages

sS

pendent force making for higher
Prices during the last 14 years,
and that without it, the increase in
money by itself, and given the
other policies this country
adopted, would have caused very
much less of a price rise than we

creases

certain, because once it begins to
take hold, it does not
too

during troubled times.
finance the

'..

difficult
its

the diet is so hard to

intensive 'efforts

'

about

also

feasibility

Its

.

Monetary Controls

The

serious

manageabilty.
.cause

.

the
col¬

Record of

feasibility

under

effectiveness

and

its

about

arise

lapse.

soon

diet

monetary

recommended,

generally

y

feared

who
would

critically,

_

wage

could be settled.

with

people

more

prices
by raising costs of production. In

em¬

.

of

and

higher

-

some

for

paid have also worked

boost of 30% or such lower they can spend when th
choose ) seems to be an area where there
quantity of money were the main figure as the union should decide
are
awf
i
r
t
promising
possibilities
of
cause of many general price rises
the company could afford after
wages explanation or
keeping the economy functioning
in history and sometimes the only examining
all
the
company's
lation
the way we would like it to if
cause.
And the increase in money books. Both unions went on strike
The main idea of this article is we make full use of this second
probably was the direct cause of to enforce those demands. They that
there was another, inde- explanation of inflation rather
Unquestionably increases m the

living

incomes under $5,000 or so.

pendently, i.e., from the demands

per¬

unemploy¬

of

cost

money.

of

(innc1imor[,

rise.
■
The country had about four
times as much means ot payment
as it had before the war and a
huge
backlog
of
demand
for
goods
Within a ew days of V-J
Day the United Steel workers demanded a pay increase of about
.20% and the United Automobile

the hands of other investors.

the

a

regular

a

the

beginning in 1937, were
when wages should

Says current steelworkers'

But

9

condition, through ployers responding to the demand manufacturing,
building,
trans¬
a
tighter money for goods.
portation,
mining,
communica¬
policy, in order to stop the trade
Except for those increases in tions,
servicing, etc., producers
union demands for large annual wage
rates generated by labor have had to set higher prices on
rounds
of
wage
increases
and union demands and certain other their
products in order to cover
c^her fringe benefits? Or how wage policies, the price-control, these increased labor costs.
much business slump will be nec¬
budget, and credit policies since
On a radio forum on Dec. 16,
essary
as
a
regular
condition 1940 might well have been suffi¬ a
high CIO official argued that
from tighter money before large cient to keep the price-raising ef¬
wages,
which presumably in¬
corporations will balk at raising fects of war
expenditures and cluded salaries
too, were only a
prices and will generally choose postwar demand within bounds small
part of production costs—•
to take strikes rather than give in that would have been welcomed
20%, he said without limiting it
to demands for increased wages? as a desirable degree of recovery
in any way. With wages and sala¬
Finally, can we accept as satis¬ from the Great Depression.
ries around 65% of the national
No
claim
is
made
that
this
factory the apparent implication
income before taxes and a larger
of the
theory that the mass of wages explanation of our inflation
percentage after taxes, it is non¬
TT
Q
,,
,
.
accounts for every price rise. The
sense to talk of wages being only
p
d
promptly'anv "excess" more important types of price in¬
a
small part of production costs.
or
they manage creases due to non-wage causes
They are by far the biggest cost,
to
t that u wi„
are
mentioned in the discussion
and they are the cost which has
o£ prices -so that the onl
(e of cost-of-living wage increases
led the price rise.
to
nt inflation isynever
below.
And
whatever
help the
The wages explanation of the
to let them have
..excess" of Money School program can fur¬
present U. S. inflation has been
mone
or
savings? (consumption nish toward the prevention of
buvinc, hv npftnip nf wealth
nh
further inflation, provided it does suggested before and often criti¬
viousl» not Umited b such mone_ not put the country into a mone¬ cized for one reason or another.
But it is believed that the sec¬
t
stinting since most of them tary strait-jacket, will still be
tions which follow fully answer
always have cash or savings which strongly
desirable.
But
there
as

cases

drive, if successful, would mainly syphon

is also

work

to

How

ment will be necessary

money

Indicates that increased wage rates,

expected

plexing.

supply was main prime
mover in present U. S. inflation and whether control of money
supply should be relied on as principal barrier to inflation.
whether

in

crease

great many other wage in¬
Just how the monetary program creases
apparently
came
inde¬

Inflation, Money and the CIO
Economist questions

(373)

& CO., INC.

*

G. H. WALKER &, CO.
.

.

...

•

"

34

10

The Commercial and Financial Chronicle

(374)

nation

that

Essentials of

New Foreign Policy

a

world

Asserting U. S. is allowing itself to be subjected to double
blackmail by global trap of Soviet Communism, prominent edi¬
describing social collapse abroad since World War I,

We

in

indeed

are

country is caught in
monstrous

global
Communism,

and

that

great trouble
Our

and our children.

us

trap

a

of

trap

— the
Soviet

One

are

we

of 1914.

summer

It

was

beauti¬

a

by

A great calm,

any news,

much
size

fact. In

that if

Confucius

thrashing

It

wildly

around

Millions of

still

fired at Serajevo. War.
incredible.
It was a bad

was

It

which

Henry R. Luce

ing from crisis
to
crisis, and

In

authority

dozen

a

was

would

sudden

a

But

pass.

that beautiful

insanity

a

of

1914,

also

become

degraded:

Century. Or you might call it the
the Age of Enlightened Evolution. Or
American system of government you might just call it Europe, or
and about everything else we hold perhaps more exactly, the Euro¬
pean
System.
Anyway, it ended
dear.
will

At

least,

be

by

know

should

we

and

dead

after

Sultan

the

had

Two and a half years later, the
is.
word: President of the United States,
blackmail.
The United States is Woodrow Wilson, sent a message
allowing itself to be subjected to to Congress asking for a declara¬
a double-blackmail.
We are being tion of war. "God helping us," he

It

be described

can

blackmailed
atomic

threat
of
also being

said, "we

do

world's

where

few

of chaos; we are

if Uncle Sam doesn't make every¬

happy, they will cut their
throats, they will jump from

body
own

their own misery

the frying pan of

into the fire of Communism.

—on

world

could

affairs must be taken
politics in 1952.
Nothing

be

for

disastrous

more

and

country

our

The

for the world.

whose Administration allows

man

the greatest country

remain

victim

a

in history to

choice

bar

to

brought to trial at the

the

of

dismissed

be

tence

for

and

for

needs

He

electorate.

his

incompe¬

his incoherence in

foreign affairs.
The blackmailing threat of war
is

now

of

our

ment
and

somewhat reduced because
rearmament.

Our

rearma¬

late, irresponsibly so*
have paid dearly in lives

was

we

and

money for that lateness, but
appropriations are enough at
this stage to provide adequate mil¬
itary counter-threat to Commu¬
our

nism—provided the money is used
to put real guns into the hands
of real soldiers and provided we
operate correctly
of the blackmail

It

is

of

this

on the other half
apparatus.

other

half

speak today—although, of

*

that

I

course,

whole

it?

of

Again,
you

Revolt of the Masses.

Unreason.

Or

halves

are

you

United

Are Confronted

We

With

a

Lawless World

wins the

name

depart

world.

literally
That

is

today is con¬
with a lawless

both

the

man ever

mense

to

went
at

Europe.

such

on

that

a

of

moment.

wept

crowds went out in

for

joy.

welcome

cratic

Tears

new

a

brotherhood.

greatest

wave

that

World,

washed

to

essence

You

of our problem.
everywhere talk about

A

the

of

era

of

That

of

|American leadership. They

im¬

another

and

indeed

amassed

corners

tion

the

century

later,
President,

one

*An

address

Luce before the
.Economic Club of New York, New York
City, Dec. 15, 1952.
by

Mr.




nation had

more

military and

economic power than all the rest
the world put together.
And

of

surest

ican

people

as

in

the

will

look at

ord

Federal

wide

much

of

stock

terms.

The
our

-

first

•

kind

is

the
for¬

it

so¬

dif¬

know who

we

ten-year price rec¬

currently
their

lick

the

stock

and reap a vast
in

was

down.

Thev

is

harvest of pleasure

thought, but usually little
since this reasoning process

seldom

carried

conclusions.

to

practical

its

We mention this here

phases, are apt
affairs. For every

boring
of

advancing prices, there

to be two months of decline.

seem

Few will recall
stalemate

with pleasure the

of

autumn,
1925
to
spring, 1927 which preceded the
great final phase of the New Era
Bull Market, or the dreary

ending

from

U.

S.

under

Anaconda

of

30

from

our

the

in

Steel

in

to

8

24

over

to

1933-5
which

rise

months
125

69%.

and

More

1943-4 market showed

the

same

characteristics,

to

be

one

further

of

rise

consolidation
rather

than

for

one

a

in

which cash would have been the
soundest investment.
In

dict

my opinion, those who pre¬
nothing more than a duplica¬

tion of last year in the market

are

merely following the line of least
resistance and fail to

see the
sig¬
backing and fill¬
ing which has been going on now
a
common
stock
for practically a whole
year, and
wait, and sell high) is generally
which, in the language of specula¬
recognized by a surprisingly large
tive warfare, means this: A
great
number
of
individuals, even
many investors, who (in the-late
though only by hindsight and after
40's)
secured
good
positions at
it is too late to do anything about

because it proves that

the correct
in
(i.e., buy low,

method for making real money

is

it./.

v;//

In actual practice,

»

intelligent
to purchase
leader

at

:

future
depressed

a

substan¬
tial
profit on his purchase, be
willing to wait until it becomes
popular.
Having
mastered this
first obstacle, he may find himself
confronted with
a
phenomenon
a.

like the 1951 stock market
*

1

some

*

aim of

'

when a per¬
or
fortunate

price, he must, to make

-

-

Government must be to estab¬

be

popular
recently
chcps in

the

else,

not more.

and foremost

people
a

mentally
multiply their
"original investment" by the rise
in price which has since occurred

that

Government

but their final

to

month

period

then

already
power.
We

people—with their

Unfortunately bull marKets, in
all

carried

some

and

when

all

it

may

bored with the status quo.

are

some

has

First,

(which

many

so

business of attracting

pleasure over how many shares while for
investment grade stocks,
they would have
bought back even the
1946-9 period has proven

hand and,

keep

mind

human

How many

the

of

constitu¬

between

to

this

waiting

up with fortunes).

Government

Federal

the

must do,

to be irresponsible

in¬

knows

people who
buy and sell securities do not end

Government

one

the

explain why

-

things

appear

changing their views whenever
they think potential subscribers

of

—

unrivaled genius for.. successful
non-governmental organization!
To be -concrete, let me cite three t
.

tunately

ex¬

perhaps
building a

of

means

Second, that task is to. be done son is
partly by the Federal Govern¬ -enough
ment but; equally by the Amer¬ : market

all

by a host of mar¬
services, some cf which unfor¬

ket

and

suc¬

conditions of freedom and order.

Roosevelt, had the chance to be

attacks

his position

on

publishing scare adver¬
Sunday papers or

be

can

government,

two

in

only hold on)

tisements in the

of

an

we

establishing throughout the world

or abroad have any
T dp 1945 the power of the United
conception of what is required of Stales stood revealed as vastly
this leadership.
;
*
greater than in Wilson's day. In
It is in the perspective of history fact, for the first time in
history
:

in

with

clients by

that

America's task to take the lead in

.

few

beset

stock
one

a

K. Thurlow

B.

Applying this American instinct
to the conduct of foreign affairs,
we can
state the global proposi¬

either at home

<

less

want

of

of

too

to

tune, but by the same token, it is
one of the most difficult disciplines

the

Government

way.

it

plore it, they deplore.it; they hail the greatest Peace-maker
time. And he, too, failed.
lit, they rail at it.
But very few

the

intend

we

his

perienced

everything that is
not Government, which is by far
the biggest part of American life,

and

American

on

on

in

better

and make

vestor

other,

-the

remote

a

the

on

profit
much

wait., The

ex¬

American

diffused

Government

policy

that

our

a

Federal

is

very

saying

the

of
is

It

based

Power

good

a

dividends

between it and the 48 states.

and

a

(and

re¬

no

shall

nature

is

powers.

the

within

the

swept

and

nation

structure

is

with

main fully in¬

nation.

the

to

pessimistic,
suddenly
optimism only to re¬
again overnight. The holder,
into

or

been

make

are

condition':

demo¬

was

promise

ever

of

key

in¬

changes,

fusion of power. Power is diffused

hope

what happened,
the .disillusionment.

quarter

him

activity

our

American

limited

ciety

wintry

know

failure,

by

one

on

that

flares

continuing

has

x

dully

or

verse

correct

market

"Economist"

leadership

—

the

of

poured out to wash away all the
pain of the past. Cheers rang out
to

tell

What

begin

Government.

weather to greet him—whole pop¬
ulations of famous cities.
They

18

from his cost price, while specula¬
tive sentiment, hitherto invisible

is

policy

is first of all

policy.

would

tional

Im¬

solid

on a

can

Geoffrey Crow-

London

which

one

The

No

a

page

prospect if he

lawless

a

policy in the Middle East

American

pinnacle

on

the

world is in accord with the nature

her

Continued

vested, collect

we

can

the

namely

respect, if not the
: Y

stood

Wilson

as

American

other day,

cessful

Less than two years after Wil¬
son sent that
message to Congress,

and the scope

People

until

A serious

wonder drugs)

c'oherent

some

to confront

What

American

gratitude, of. mankind.

he, himself,

of the

—

to

never

(let

relationship

man.

for law would set

oils,

in

vested

principles?
of

I

the

and

man

concern

not

was

heavily

tell him?

America, our
America, entering upon the world
scene,

who

securities

that

one

has

for

of

which

American

Asia.

The United States

fronted

it

call

he

search

to

cept

Age

just

can

States

emotion

diabolically trig¬

it

Technology. Or, with all
things, good or bad, as back¬

drop,

of

owner

come

any

call it the

decent

any

democratic)

between

the past year

over

policy in the Middle East and that
it is impossible for Britain to have

and

these

what

said, in effect, that Britain has

Or, the Age
of Sci¬

the

Western

both

gered to each other.

call

can

can

alone

unsatisfactory one on
for
any
price-conscious

here

The

a

ceivable basis of

be

metals,

believe

world.

it,

was

the

set

thinking

about law—which is the only con¬

highly

lawless world. Too

come

those

ex¬

have

(a

■

I

ther

the

you

You

names.

Democracy. Or
of

of

a

grasped

principles

goes down into chaos.

something—what

is

ence

needs to be

the

would

earnestly

policy to be adapted to cur¬
as indicating
investors have been induced at times to sell holdings
for profit, and reinvest in "defensive" securities.

Looking back

coherently

primarily to beg. He has

not

is

It

world

stock market, points to minor swings in prices

balance

new

justice

still

are

have

few.

will

and

immense.

Thurlow, in commenting

many

custom,

Winston Churchill is

that

that
either
a

until

And

freedom

or

That
what

blackmail

of

cf

isting world

that foreign
of

end

never

created

President Truman has announced

out

April 6th, .1917.
something began

day,

The consequence of such a pro¬
be

Mr.

defend itself,
however

to

and

means.

with

are

are

posal by the United States would

rent

■

This United States is confronted

blackmailed by world-wide

nations which

are

Partner, Talmage & Co.; Members, New York Stock Exchange

intact.

thoughtful people felt that Wilson
threat had
kept
God
waiting
long
told in effect that enough. Anyway at last he did it

We

able

law

threatened,

here

no

which

By BRADBURY K. THURLOW

law, went down, tried to

nificance,

other." Most

can

open

nations

Policy for 1952

perhaps just beginning

and out, or
an

one

the

by

war.

in

only

their

an

shameless in their law¬

are

both respect and

we

make

to

execution

lessness.

mankind. Great are

upon

A Market

And then while all Asia was down

literally with

what the nature of the trap

now

which

one

should

law

Ob¬

earned

the title of "Sick Man of Europe."

forever.

that

suggested

criminal

its

The

whole

not

so

thief

a

ashamed of their laws—cr nations

-

inheritance;

—

And not just us.

we'll all be dead.

is

to¬

law

countries

thousand years of conquest and

-»

Freedom

criminal

our

could refuse

in

the varieties of social custom and

Islam, the warrior faith,

upward climb, Europe, Europe
didn't.. whose law was effectively
the

it

summer

keep on making

we

this

United

get

it is merely to invite all
which" claim to be. lawful

book.

property and/or your

;

;

.

It

>

.

to die.

inspection.

something which comes

your

life?

some¬
get up, went down again for the
bigger and something ended forever
better blunders for 30 years, the thing very great and wonderful. count.
That something has various names.
Today the United States is the
trap will get
tired and wither
You might call it the Nineteenth
only political entity of global sig¬
away.
Sure it will. But by then

if

night;

prison? And for what cause? Fcr
what
cause
may
the State lay
violent hands
upon
you,
snatch

dilemma of whether to go modern:
or

was

dream.

enough, plung¬

both

the

viously hot. The present proposal
is not to change any laws over¬

their daily life. Who may take you
from your heme and cast you into

dynasties had flowered.'
lay impotent and isv common
today caught in a psychic. imposed

survival,

shot

on

and

away

is

man

will have his finger cut off?

the

home to eveiy man and woman

lifetime, the

our

of practically the

a

Arabia

law-abiding

India

had

a

gether

Should

Saudi

law

Here is

finished—he under

was

moral

whose

no

keep

that

is

and

and

this

cf

you

humanity outside of the
be¬
fore the 20th Century opened, the
civilizations of Asia had collapsed.

valleys of Switzerland. They feared
evil. And then, as history says,

be

to

we

off.

cut

States

try should be open to continuous

United States, collasped. Even

the middle class swarmed through
the art galleries and up the green

idea

seems

An

aristoqracy blended with a
plutocracy in a fine harmony

of fun and relaxation.

30 years.

or

This

hand

that in

It

that if

caught stealing, he shall have his

not

may or may

insnection.

understand that the law in

his country says

nations

brilliant

new

idea is to stay
in the trap for

Now I

in¬

penal institutions of every coun¬

whole of

Hindu

old

friend, Iban Saud of Saudi Arabia.

Recent

good propaganda.

3 tional

v,

„

history in order to empha¬

one

social structure

the Continent the spas were filled

crazy

-'

v

reminded

have

with the rich and fashionable.

of it.

20

what

see

Permit me, therefore,
you back briefly to the

undis¬
lay over most
Everybody in Europe
was on vacation. The house parties
in England were never nicer.
On

anything than
how to get out
.

best

can

ful summer.

about

-

Social Structure

of

.

There¬

the

stage,

Abroad

of the world.

rather

would

talk

practice. They

be

leading

"

good

our

any.

international

with

armament

example,

international

we

turbed

experts

on

Collapse

I

take

to

the

to

politicians.

against.

up

it too.

for

com¬

created.

be

meaning1,
I should like to propose a better
of the drama is obviously much —and more
fundamental—way to
deeper than the grease-paint of- aoply the principle of interna¬
actors

world-wide scale.

—all of

the

has to

in the spection. Disarmament proposals
nation failed.- are weak in theory and illusory

good

a

hardly

it

power,

ascribed

be

may

three primary

as

of

any—or

fore

Take

efforts have been in terms of dis-*

How come? However much blame! in

things our Government should do:
(1) revive international law and world-wide respect for it;
V (2) clear the way for world-wide activity of free men in build¬
ing wealth and engaging in other lav/ful activities; and
(3) transform State Department into a dynamic organization.
Stresses need of re-establishing sound convertible currency on
outlines

ample

Power,
hands

believed

over

Law

isn't

Thursday, January 24, 1952

.

we

learn about
is that there

we

International

,

Hundreds
the

tor, after

sincerely devoted

thing

.

desire variety as well as
monality in human affairs.

lish in the world the rule of law.

a

nation can be to the prin¬
of justice
and freedom.
of millions of people

any

ciples

"Fortune"

Editor-in-Chief of "Time," "Life" and

America,

ours,

moral nation, as
as

By HENRY R. LUCE*

*

was

nation which we believed to be a J But the first

.

his stock may

show

a

nificance of the

much lower prices in stocks which

destined to sell at much higher
prices, have been induced during

are

the

past year to sell these and
reinvest the money not in similar

issues, but in "defensive" securi¬
ties, which may, in addition to
destroying their strategic advan¬
tage in the market, prove entirely
inadequate to. the function for
which they were bought.. In ef¬

fect:
"Having, gotten: in on4 the
where ground; floor, they got obit/at the

good pkofit mezzanine.",'

••

•

■;,

/'V/"L

■

Volume 375

Number 5084

.

.

The Commercial and Financial Chronicle

.

(375)

Real

The Investment Situation

merits

Stock Exchange

active

an

position
board

stocks as best available hedge
against inflation. Points out Dow-Jones Industrial Stock aver¬
ages since 1951 has risen less than 40%, whereas commodity,
purchase of

common

real estate and farm land have each

Concludes stock prices are not

have

assigned

to

and

labor,

vestors,

potent

our

you

most

ested

erans'

our

indi¬

viduals,

are
con¬

cost

with

drastic decrease and

the

purchas¬

ing

will

ministration

of

power

of

but

the dollar and

carried

the

pledge

crease

istics

hence;

will

I

so

etc."'-.

for

case

a

W. Carroll Mead

common

the

stocks

as

media

for

investment

ideal

in¬

individual

most

vestors.

interest
down

rates

that

knowledge

common

been

have

forced

governmental action to

by

finance the huge government bor¬

The

rowings.

inf
ent.

been

few

firmed

to

that good
good preferred

only a little over $100
Deflate

To

Political

Is

life insurance com¬

banks,

others having solely
liabilities payable in dollars, gov¬
ernment bonds are still the world's
and

premier investment.
The dollars
be
paid
punctually
and

will

promptly, but we,

individuals,

as

problem of what the dol¬
buy in terms of food,

face the

will

social

The

suicide.

the

of

cure-all

nave

purchasing

the

seen

of the dollar decline

until

today it is worth only 52 cents
compared to the 1939 dollar.
In

purchasing

every

anytime

than

in

our

Our

history.

163-year

govern¬
is interested in taking cor¬

ment

be

successfully

more

.

You
the

Chemical

Stocks

ahead with" Steels
market*Railroad Stocks

years

D Cigarette
may

greatest

grow.

in

tre¬

our

population.

Since

3,000,000 per yeah.
the population has

grown

and at the end of
population will have
27,000,000.
This in¬

24,000,000,

by

by
is

entire

than

more

double

population of Canada.
Stocks Widely

Common

Stocks

Common

Owneit

being

are

bought by more and more people,
are seeking a higher rate of
return

-

inflation

and

protection.

The pressure for

increased income

has

changed

drastically

the

in¬

my

competent Textile Stocks

all

commitments

We

endowment

0

have

2.3%

invested

—

off icq Liquor Stocks

into

of

9(3%.

common

—44.6%
—17.5%

.—_______

an

Comparison of investment Values

„

7
Percentage

Farm Values per

Cost

of

G-room

1951——,

1937 High

Investment Media—

in

Dow

Jones

to

buy

Banks and trust

and

common

insistant

plea

(Nov.)

1437'

beneficiaries of estates

148'/r

more

(Nov.)

1037*

271

194.40

tapprox.
Jan. 18)

•.

24.32

11.49

of

and

more

Legislation '

39.4+
111.66+

has

are

common

recently

Continued

on

are

stocks.
on

,the

of "the
buyi ng
sto'c!

and

put

page

in

individual house

our

order.
As businessmen, we are

deluged

v

appeals for contributions

with

to
Foundation,
the Committee for the Adoption
of the Hoover Report, etc.
The
the

$8,850,000

Freedoms

NAM,

Gas & Electric Company runs

New York Central

ads,

Railroad

telling the public of the growing
Power

Equipment Trust of 1952

write our Con¬
and Senators, urging
and fiscal sanity.
All

gressmen
economy

efforts

these

Federal

of

We

projects.

3%% Equipment

praiseworthy,

are

spending

towards

flowing

Washington

of

more

To

mature

annually $590,000

on

each February 1, 1953 to 1967, inclusive

world's eco--

nomic ills.

lands, but has paid little at¬
tention to the erosion of our sav¬

the

and

Trust Certificates

(Philadelphia Plan)

We are in the hands of

and more.

conditions

the

in

action

rective

erosion

our

the dollar to continue to lose

purchasing power or can the de¬
cline
as

How

arrested?

be

protect

individuals,

can

we,

ourselves?

My answer is: The trend is

still

should,

and

of the
indicated.
A
power

what steps

number

of

reasons

prophecy.

exist for this confident

To be

can

MATURITIES

2.40 %

1958

3.25%

1963

3.425 %

1954

2.60

1959

3.30

1964

3.425

preponderance of fixed

1955

2.80

1960

3.35

1965

a

3.45

port¬

1956

3.00

1961

3.375

19 66

3.45

1957

3.15

1962

3.40

1967

3.45

obligations

in

concentrate

equities

on

our
more

and

common

or

We recognize the
fact that in
(1)' War and the Cold War: We
all likelihood the tide of inflation
live in a semi-war economy,
is still running and will continue
for the rest of our lives.
We will
■

have*

conflicts

the

continue

worsen.

An

-

the

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

Issuance and sale
The

and

excellent

example

be seen in Iran and Egypt.
We may not have World War III,
but
we
will
continue spending
may

billions

try to avoid this hor¬
catastrophe.

rible

(2)

to

The

Labor

Situation

and

the Increasing Strength of Unions:
We

have

000

and

a
a

committed
program.
*An

labor force of 62,000,-

government which is
a
full employment

to

The government is pro-

the foreseeable future.

over

How
Gold

over

ideal

the

Engineers

Club,

by

Mr.

Mead

Baltimore,

1952.




before

thP

Md., Jan. 23,

we

can

Inflation /

the

gold.

has

years

been

but legally we
That leaves us:

Commodi¬
ties; (3) Common Stocks.
I
present
the accompanying
table for your consideration, and
you can readily see of the various
(1)

investment media.

This

R. W. PRESSPRICH

EQUITABLE

BEAR, STEARNS &, CO.

&. CO.

L. F. ROTHSCHILD A CO.

SECURITIES CORPORATION

(2)

Real Estate;

appear

HALSEY, STUART &. CO. INC.

protect ourselves?

hedge,

cannot hold

Common stocks

THE

FIRST

OF

WM. E. POLLOCK &. CO., INC.

ILLINOIS COMPANY

MICHIGAN

IRA HAUPT

&

CORPORATION

FREEMAN

HAYDEN, MILLER &, CO,

CO.

to have lagged far behind.

might

be

partly due to the
of real estate

fact

that

has

had

little

McCORMICK

&.

CO.

the buyer

the funds;
address

Against

Hedges

have-nots
may well

between the haves and
will

of

The struggle

opposing ideologies.

.

stocks.

will

still

■'H

be added)

1953

and

more

to

of

conception

orthodox

old

folio

by endorsement

AND YIELDS

(Accrued interest

Obviously, we have to abandon
the

guaranteed unconditionally as to payment of the par value and dividends
by The New York Central Railroad Company.

and

we

ings and have a hedge against the
increased cost of living.

a

dollar seems to be

.

take to protect our sav¬

we

consequent having
interest
further decline in the purchasing
inflationary,

.

accept the premise these
exist and are likely to

continue,

ings and money.
Is

If you

to

trouble

MULLANEY, WELLS &. COMPANY

borrowing

whereas the borrowing

purchase stocks has been

erally restricted by law.

sev¬

January 24, 1952.

&. COMPANY

GREGORY

&

SON

INCORPORATED

WILLIAM BLAIR &. COMPANY

McMASTER HUTCHINSON 4, CO.
F. S. YANTIS &. CO.
INCORPORATED

s.

been

the

over

of

permit

companies

(Dec.)

176.3

funds
list

laws

now

248

Earnings

Industrial

State

$15,971

88.0
.

are

The

factor.

York

102

1935-1939—100)—

•

stocks; Pension funds

$6,443

Acre (
House

Commodity Pi ices—USBLS (1926=100)__
Dow Jones Industrial, Stock Averages—

and

their

diversified

a

enormous

New

of

50%

over

urgent

Increase

investments.
Many
funds
now

term

—

_Z__

Stocks-

any

walk

office

-

college

trustees
,.

economic

power

+28.3%.

increase in

consequent

or

has

scene

even

dollar is but, gentlemen, the trend is still

the

power,

less

worth

was

who

important. Last year, the DowJ°nes Averages advanced approxim^tely 14%.

be calculated.

may

global

and

.

.

,

Selection and timing as well are

investment. The

any

local

'

,

•

encroachment

clothing, etc.
power

_

it

growing and

globe; so we must accept change

7%.

We

a

well forget the
recognize the
fact
that politically
inflation is
popular and to deflate is political

stocks

lar

in

both

changes

I

value.

days and

have

panies,

Picture,

risk;

risk.

advisedly because risk is

operated in the

We may just as

good old

world's

For

of

are

growth

this year, the

long

and

billion.

Times have changed.

and

!TVt+i
little

risk, however,

Suicide

the

3%,
plus, and good common
are
available at 5%, 6%

be alert for changes in the overall

ff
afford

can

larger degree

a

say risk
inherent

Exchange

the New York Stock

on

ill.

yield

Presidential year. We must always
.

to

compar¬

ago,

year

week¬

7,600,-

very

stocks 4%

bonds

you

point

a

be roughly stated

may

tell

aluminum,

copper,,

'

Some

others

interest rates changed, and many of our younger,
where it generation look to Washington as

months,

past

"easy

However, in the

money" policy.
have

has

government
so-called

the

fostered

-

lead,

„„-u1

The market value of all the stocks

is

is

It

only

can

with

now

ing will be

tempt to make

industries

the

over

existing the prun¬
Some of these companies have
vestment
procedures
of
many
thin in the over¬ paid dividends for over 100 years. Tire & Rubber Stocks___ +51.6%;
people and institutions. We see a
all
budget
picture.
For fiscal You can get a current income of Radio
&
Television
trend
to
more
institutional ac¬
1953, the President asks Congress 5, 6, or 7% and the hope the
Stocks
-f
40% ceptance of
common
stocks .as
to approve a budget of $85 billion.
company
will continue to grow Petroleum Stocks___.___ -f37.8%

magnitude

at¬

-T-

prefer

for

was

in

kilo¬

growing at the rate of al¬

are

grown

government expen¬
ditures have been built up to the

level, say five
years

I

out.

We

The

people appreciate

mendous

ihe™ wil1 be many conflicting
Pr°blems to be resolved. It is a

Some

a

will continue

different than other years, in that-

companies.

19

6,980,000,000. We
Few

growth

whereas for the

week

their

that when the

price

able

the

growth industries like the chem-

economical,

this

has

rarely

any

industry

may

right

resource¬

output

output

Jan.

000.000;

most

Others

that the Ad¬

be

increasing

measurably

the book values. Earnings have
shown an enormous increase. To^ay' *be Dow-Jones Average is
about 11 t!mes estimated earnings;
*n 1^29, the ratio was
,19-2* The stock market would

objective.

stable

more

be

the

see

can

hour

1940,

its

to

imagination. It is
that air transporta¬

power

ending

have to S° considerably higher

administration the
government will show a

cerned

industry

*° equal the advance in Real Es*a™,or Commodities,
year of 1952 Will be no

extractive

more

con-

char-

in

change

into

prefer

are deal

We hear it said that if we have
a

decade,

of

list may

utility

take

not

obvious inflation hedge character-

Many other

that

do

watt

management. Some

the

of

acteristics.

The Vet¬

economy

your

the

own

with the dieselization of the rail¬

have been plowed back through
retamed earnings over the past

rep-

fit

to

have

your

use

electric

industry. You

your

ful;

sideration the 52c dollar. Billions

cream

to

investment

prefer

may

because

highly inflationary.

as

We,

(c)

Program.

situations in

com-

stocks.

m o n

(3) The Tremendous Increase in
Cost of Government: (a) The
Program.... (b)

equities

pick

pick

can

Defense

inter¬

in

selected

can

They

this

From

You

1100

some

listed.

in.

You

Ex-

Stock

backbone and

economy

You

force.

doubtless

good

selected,

averages

York

are

conceivable

the

are

a

New

resent the

force of
political

working

a

is

62,000,000

the

corporations

relatively high, and wider owner¬
more stability.

the

me

pay

They

interested

have

You
stocks.

Some will tell you the market roads, more automobiles on the
is historically high with the Dow- road and more homes heated by
Jones Averages over 270. The oil. You gentlemen in the utility

your

properly

be

any company

Market Not Too High

easy

are

shift

change, the equities of

be
You

if

They

,can

quickly.

and,

On

ship of shares leads to

topic, "The Investment Situation,"
which to say the least is a complex
subject,
but
as
individual
in¬

You

might

on

will be welcome regardless of the visible to you
is
increasing,
that
more*
size of your investment—whether tion
natural gas is being used, that the
it be $100 or $100,000.
use
of
oil is steadily increasing

appreciate in value.

than doubled in price.

more

you

no

the various

o;

market.

handle.

to

by inflationary trends, Baltimore investment banker

advocates

broker and get exhaustive statistical information

is

There

demerits.

and

and
their

have

each

competing media, common stocks
appear the most attractive for the
average
individual. They enjoy

Pointing out present investment situation is bound up with and
encircled

Stocks

perfect hedge, but

By W. CARROLL MEAD*

Mead, Miller & Co., Baltimore

Members, New York

Commodities,

estate,

Common

11

16

2

The Commercial and Financial Chronicle

(376)

others

U.S. Responsibilities

in Free World

as

steady

and

selfish

of

concern

think:
the

with

start

us

is

pretty

the

of

has

How

Why

do

it

upon

and

for which
recognized everywhere.

we

have the lead¬

strength

have

be

brings

How?

Will

the

up

this

ment

unbalance

an

controls?

question:

e

r

t

a

Whether

like it

to solve

we

we

govern¬

is

where

not,

or

government,
sulting from

leadership has
fallen

A.

Third

nation

our

Hans

differences

upon

not

the

concern

In

ity

But this roll of

America

First

and

of leaders

as

recent

not

an

offer lo sell,

nor a

we've

years

control

cannot endure

whom

can

It

individual

Light

the

freedom

only

and

is

Rigid

Company

and
v; t, /. *

'

y

*

iff1.

to

people

the

improve arid

>

to achieve individual

share

do it at the expense

initiative,

j

of

rate

one

The several Underwriters have

agreed, subject to certain conditions,
unsubscribed shares and, both during and following

purchase any
subscription period,
in the Prospectus.

j. :to
f

the

}

may

offer shares of Common Stock

as set

forth

may be obtained from any of the several underwriters
only in States in which such underwriters are qualified to act as dealers

and

in

which

the. Prospectus

legally

may

be

distributed.

Blyth & Co., Inc.
.

Merrill Lynch, Pierce, Fenner & Beunc

j

| A. C.Allyn and Company
jt'j.
Incorporated

Kidder, Peabody & Co.

•

Smith, Barney & Co.,

Bear, Stearns & Co.

of

Stern Brothers & Co.

j

i

,

<

Goodbody &■' Co.
I
-

<

v

*

.

II. O. Peet & Co.

A^jnv

f'

Bnrkc & MacDonah!

Jr

Barret, Fitch & Co., Inc.

Newhard, Cook & Co.
*

Prescott, Wright, Snider Company

J

Ilallgarten & Co.

Spencer Trask & Co.

Dean Witter & Co.

I

world,

f

C

*

Kirkpatnck-Pettis Company

-

no

k

'




It is business

S

branches

must
of

our

be

leader

a

come

from
and

of

us

around

than

We

us.

need

now,

before, to main¬

ever

vigil to

the

preserve

of

viduals

in

can't

us

By

them.

do

the

grounds

all

Maybe

that is

nature

or

our

of

work

each

deep

a

deter¬

It

the

is

business

threaten

our

Constitution

welcome

as

precepts

originally

as

ideas

New
be

of

way

in business

the fundamental

as

our

uation, let

of

must
—

in

fact

keep constantly in

us

mind the best of

our

traditions.

It seems clear to me that leaders

bet¬

are

of

searched after—but in their eval¬

of

back¬

our

against.

our progress

course

necessary.

we

which

written.

nomic structure through the indi¬

in

qualified to contribute in some
more than others.
But, to

business

the

asserted
the

to

whatever degree we can help, it
is our profound duty to add our
bricks
to
the
great edifice
of

world

have

not

affirmative leadership

an

degree that they can

if

must

too, may be

survive.

to

are

we

creasingly

and

product of

a

and
This,
in¬

our

Should

Businessmen

Speak

jobs

Out

to

do

We

our

country's history.

onward toward

mental
come

We

keeping their thoughts, their
leadership, confined to the realms

can

of their
more

offices, their laboratories,
their factories, or their markets.

govern¬

regulation and, in fact, be¬

ultimately

like

those

would destroy us, or we
ourselves

again

obtain

of

a

that

place

we

This,

of

course,

more

where

it

these

/

today.

"

•

of

So

business

responsibility

'

loss

realms,

or

the

we

basic

must

this

face

principles

let's

face

the

squarely in the days ahead.

means

horizon

belongs—among all in¬

cratic society.

when

which made this country what it is

healthier balance of governmental
-

come

leadership must be shared outside

find

the

and

has

time

The

who

can

be

can

opposition

of

speak

us

without fear

the

people

your

feel will

you

strength
Certain it is,

disagreement

no

this

to

or

if

approach

preparation

and

under¬

are
the foundation of
expressions. A primary task

leadership should be to stimu-

late

and

coordinate

,

issue

Let

leadership broaden its
by fitting its time and

thinking

into

broader

spheres.

But let businessmen not make the

: mistake of putting .their prestige
,.

the

of those who believe in

,;j

activities
common

a

cause.

Basic Pattern of Our Social
Structure

•

V

"■*!

"

of

expression

be

must

that

by responsiblity, and in
way
lies greater freedom.

This

is

the

American

basic

pattern

social

the

of

The

structure.

responsible people do not fill our
jails.
It is those who would*igtheir

nore

in

responsibilities who end
jails.

our

stand

If

the

broad

let

under-

us

meaning

sponsibility which
forefathers

would not

we

freedom

our

for

we

of

re¬

to our

owe

preserving. the

society they gave us.
And

further

speaking
let us

pression,

consideration

on

ex¬

forget

not

must

our

always be for

the other fellow—the general pub¬
lic.
Again, let me emphasize: Be
sure

so

we

ourselves that

prepare

the

public cannot mistake what it
is we are for and what we are
against. Disregard of thought for
others
through poor leadership
soon
brings on warped thinking
and, in turn, distrust, followed by
the extreme of anger and resent¬
ment.
The public then becomes
prey for those who
and our society.

would destroy
It is not al¬

give

consideration

us

to

ways

easy

to the

other person's position and
of view, but it is the safe

point

This

way.

difficult

more

course

generally results in achievements
greater import which are far

of

substantial.

more

to

the

approach, leadership must

on issues as they de¬
velop—not crisis leadership, after

exerted

are

in

before

careful

be

have

which keep them preoccupied and
sometimes
overburdened.
They

danger point

with

With such careful consideration

government controls, and of which
there are far too many already.
a

let

and

well-being.

there

complex society.

Businessmen

alternative to further extension of

have reached

of

be

contribute to the nation's

lose

today is
patriotism, a

are

we

living,

all

will

say,

confidence

Place

up

society.

to be
positive about challenging activi¬

eco-

study

a

may

The fundamental concept of the

responsibility

Such

to

concerned

are

that

on

ing what our aims are rather than
so much
energy directed at

job

a

social

\

Uhlmann&I.atshawJnc;

to

abiding

well

leadership
.

dreams of the

'

Lid-

respon¬

today.
We can ac¬
complish this far better by know¬

U.
mm

of

acceptance

we

explanation of what

problems of

This is

must

in

company.

balanced

share.

all

know

people

attitudes

who

what

and

national

mination to keep the things which
America
great, and with
that understanding to
solve the

dividuals who make up our demo¬
!•

of

made

and

them¬

don't

devoted

the

privilege

in

which

what

rest on his laurels. This
time to stand still, because

and

present way of living is to

activity.

George K. Baum & Company
*

demonstrated

basic concepts of our

security, we
of individual

free

a

they
think

thought,

and

highest
living standard
accomplished fact. Will it

an

ties

go

Coffin & Burr

(Incorporated)

G. II. Walker & Co.

White, Weld & Co.

Incorporated

"I Harris, Hall & Company

particularly

times

in

tain constant

leadership. Only through
such leadership can we find the

Glore, Forgan & Co.

been

years

and

to translate

down

free

business

assert

standing

more

American

The First Boston Corporation

these

do, somebody else in
the world will turn things upside

desire

all,

Such hesitation is not justified for
is a simple solution.
Time

your

what

ter

-

Copies of the Prospectus
securities

all

Its

if any

ways

in

which

upon

to

industry, in their

overcome

is

desire

above

that

said

people

combined

is the primary need.

share for each six shares of Common Stock

held of record on-January 22, 1952. Subscription Warrants will
expire
jat 3:00 P.M., Eastern Standard'Time, on February 6, 1952.
,

j

business¬

their

Nobody, including the business¬

too

our

been

because

what

A great need of

our

will,

hesitate

selves

are

man, can

will

then

we

leader

our

has

and

Leadership
to
preserve
and
Strengthen our American system

,

the

this

on

score?

prevail.

v '
' :
:
J-Holders of the Company's outstanding Common .Stock are being
j offered the right to subscribe at $26.50 per share for the above Common
at

basis

but

confidence and understand¬

tact,

the

U

shares

it

by

if

(Without Pur Value)

adverse,

times,

destroy our¬
selves. This cannot, or rather must
not, happen if America is to be

317,792 Shares Common Stock

be

build

with

grow.

enterprise system. If, in

Plus accrued dividends from date of issuance

made,
reprisals

this

continue

frustrated

has been "the catalyst" of

re¬

of adverse effect.

world's

controls

American

great

of

out.
If
a
well-

unselfish plan has
then the possibility
will be greatly re¬

ana

been

with

into

Let us not forget that initiative
•

thougnt

changing

built, will

feel

that busi¬

fear

speaking
preparation of

obstacles

hopeless, and in the end de¬

stroy

100,000 Shares 4.50% Cumulative Preferred Stock

its

the

lose

leadership,

crisis.

destroy the moral fibre

which this nation is

on

making

fiel<£ of

when

busi¬
has demonstrated its capacity

This

individual

for

own

quite apparent

proper

of

used

still
same

1

must

prisals

pre¬

we

ing.

held—that

which

system

endure.

much will

make

is

those

accepted

the

concept must be preserved.

which restrict the

Kansas City Power &

one's

has

the

portant control within which

work

is

in

for

American way of imposing a dem¬
ocratic pattern as the single im¬

is

as

It

in

us

but

substantially the

decisions

of

ness

ex¬

of

concept

face

society,

business.
ness

prepara¬

there

nation

original'

which

approach

cannot

contributions

the

is

Through

never

either, for this

nothing.

serves

understanding of the

our

xake

ple has been earned, not only in
this country but throughout the

that extreme.

January 23, 1952

problems

respect and confidence of the peo¬

the

seen

itself

an

serving
must

accom¬

of

all, it requires men and resources. The French
management that has supplied the
responsibility Revolution was a shining example
leadership that has enabled our
individuals to
of

NEW ISSUES

1

have

moral

The offering is made only by the Prospectus.

Price J100 per

These

treme, too, leads to destruction of with determination.

easy.

solicitation of ail offer to buy any of these securities.

(Par Value $100 Per Share)

who

full

story

proof of the ability of

to the extreme of anarchism

The

This advertisement is neilhcr

made

leaders

among' you

life

a

men.

destroys the qual¬
individual initiative, even

of

goes

above

and

dignity

is

Its

have

the

though such controls momentarily
sibility to its employees, its public
may seem to be carrying the day
and its stockholders is proof of its
in a difficult situation. But,
again, ability to face issues squarely,
on the other
hand, freedom which
grow
with
instead
of
against

leadership which

confronts

by Mr. Eggerss at the
Inter-Industry Conference on Chemicals
in Foods, sponsored by the Manufactur¬
ing
Chemists'
Association,
New
York
City, Jan. 15, 1952.

which

great.

one

earth.

endure when it

of the average Amer¬

abundance

and

world

Government

her people.

these qualities is

Eggerss

address

be

can

improving man's existence

sitions.

partly by de¬ ican for his fellow man, his desire
fault, because to help others, his generosity, his
the strength of other nations has willingness to serve in the
quest
waned, but more importantly be¬ of gains for all and not for the
cause of American qualities.
sake of selfish gains alone.
♦An

na¬

tion

plishments, all in the interest of leaders

well as those re¬ collapse of dictatorships which
regional and other depended
upon
state
controls.

among

today

great

qualities

give

as

among

seg¬

Our

persevere in the face of compli¬
profit cations and competition. There is

should

History has shown that controls

problems in the realms of

in

in

leaders outside the regular

be

position through merit, duced, yes, even eliminated.
We
through the ability to meet the must be so prepared that whatever
challenges of public needs, and to reaction there will be, will not

Controls Lead to Collapse

are

production, science, medicine, and

the mantle of

of

To

achieved

capacity. The United States Other monarchies have gone down
has demonstrated unusual ability under the burden of their impo¬

1 y?

e

life.

our

America

by

is the

or

in

Here

and

basic

mental

delib-

sought

strength
to

possesses

This

achieved

be

leadership of its citizens,
answer

quali¬

maintained.

Second among these

not

important,

and

qualities is which went too far resulted in
ership of the American initiative and responsi¬ the collapse of nations. The Ro¬
free world — bility—which might better be de¬ man
Empire fell under the weight
a
leadership scribed as keenness of mind or of
its
autocratic
government.
we

most

important,

an

American

on

leadership. field of business, it takes

its

up

draw

for

The balance of

must

again

and

resources

the

of

traced

or

about?

come

natural

maybe
ment

share

tional

interest.

now

world."

free

ties

these qualities are

among

America's

1

humanity without

serve

productive capacities—or physical America can
material attributes. These phys¬
from history.
ical characteristics give us stature
this

United States is

"The

leader

First

statement

a

recognized,

well

to

makes

Thursday, January 24, 1952

.

Prestige

must

we

business

before.

ever

controls as leading to collapse or dic¬
tatorship, and as destroying essential incentives. Urges busi¬
ness share in nation's leadership.
excessive government

Let

this,

.

alone into another field of work.

pioneering attitude,
as the our
willingness to risk in order to
leadership develop new things, our initiative
increase, the complexity of its job to delve
confidently into the realm
increases. This means that the job of the
unknown, and to build to
of guiding our society along the
a better standard of
living for all.
right paths becomes tougher than Business in
its
broadest
sense

bility of individual leaders and maintenance of strong and
steady balance of nation's fundamental qualities. Denounces

that

do

Business

As the nation grows,

American for his fellow

average

To

strong balance of its
qualities,
its
re¬
its initiative and its will¬

demands

Says these qualities require dignity and moral responsi¬

man.

maintain

to

a

a

ingness to

productive capacities; (2) initiative and respon¬

sibility; and (3)
•

our

and

sources,

corporation executive lists as qualities which have
contributed toward American world leadership: (1) natural
resources

whole

for

fundamental

Prominent

•

Business Should Share in

and

Leadership

nation

HANS A. EGGEIiSS*

By

pride

Second, it is necessary

President, Continental Can Co., Inc.

:

with

look

can

confidence.

.

the fact,

after trouble has occurred

issues have hit the headlines.

and

Leadership
when
here

we

like

tention
each

to

of

us,

tained

is

This
be
-

easy

BjLrt

our

at¬

which

on

basis

most

of

capable

his

of

The results to be ob¬
turn

will

affirmatively

selves

it

in

not

busy.

issues

the

on

experience,

how

is

so

depends upon
those

judgment.

this

all

are

much

and

back

depend

we

our

assert

upon
our¬

convictions.

pattern must apply whether
in

our

homes,

Continued

our
on

offices,

page

31

:

Volume 175

Number 5084

Production in 19S2
By J. D. SMALL*

Though pointing out year ahead is full of "ifs," MunitionsBoard's Chairman predicts, in terms of Gross National Product,

should

will take about 18% as com¬
pared with 12% in 1951; and, in dollars, military expenditure
will be more than $50 billion, as against $30 billion last year.
Foresees some shortage of steel, copper, and aluminum, but
says supplies are improving.
Points ou£ nation is partially
dependent on imports of strategic materials, and stockpiles have
reached only one-third of objectives. Cites increase in small.
firms' employees, particularly in metals.

1952." That sounds like an
subject, and one on which I,
Chairman

of

tions

Board,

should
able

be

talk

to

with

considcer¬

e

tainty.
The

fact

that

to

with

is

what

months
the

on

world
D.

our

the year

v

,

that

do continue

we

impact.
In terms of
Gross National Product, the mili¬
the

18%

about

12%

about

the

1952

in

spend
billion

1951.

in

littje"

a

$30 billion

over

In

in

of

terms

will

military

resultant impact on

their

Of

off

at

in the

late

levels off

til

it

An

easing in the civilian supply
aluminum is not anticipated

of

1953.

until
In

year.

.

summary,

as

to

metals, the

pinch is on. We can expect short¬
ages
of all three basic metals,

The great bulk
used by the military
.

steel,

and

copper

aluminum, to

continue for at least the first half-;

probably

and

year

miiltary take of aluminum
heaviest percentage im¬

The

has

for the first

Thereafter if world

nine months.

the

of

usual,"

part

bid."

;

me

say

total

dollar

important

on

the

that

a

base

meant

give

1951

ber,

of

that

of

military

a

utxense ui

items

would- rapidly

obsolete.

Such

mobilization

involved

volves

those who

calculated

a

in¬
say

risk.

are

gamble

great

a

should

move

creation;

and

thatr

we

forward faster in the

of

military

Others, and they

are

strength.

increasingly

address by Mr. Small before the

" * An
Annual

by

Forecaster's
.

spon-

the Chamber ol Commerce

Greater

Philadelphia,

Jan.

1952."

15,

Conference,

"

Philadelphia,
'




.,

of

Pa.,

page

.

the

figures

....

steel

carbon

v

5V4% Cumulative Preferred

:;

Per Share)

(Par Value

1,500,000 tons.

take

-

from date of issue -

Copies of the Prospectus may be obtained from any of the several under¬
writers only in states in which such underwriters are qualified to act as
Prospectus may legally be distributed.

dealers in securities and in which the

.

1952

The First Boston

Blyth & Co., Inc.

tons

A. C.

Glore, Forgan & Co.

quarter will be

Central Republic

indicate that
take will increase

world

conditions

do

get worse.
•

In

fairness, it

Blunt Ellis & Simmons

Julien Collins & Company

The Illinois Company

should be made

Incorporated

Harris, Hall & Company.
(Incorporated)

Newhard, Cook & Co.

The Milwaukee Company

McCormick & Co.

not

Incorporated s

Robert W. Baird & Co.

...

William Blair & Company

and should level off at about that

-

^

Bacon, Whipple & Co.

Company

A. G. Becker & Co.

Allyn and Company
Incorporated

(Incorporated)

in the third quarter of
possibly to 2,400,000 tons,

if

Corporation

.

programs

military

k

_

of

In the

of
calendar
about 2,000,000

is

Share

Price $10(1 Per
Plus accrued dividends

about

was

quarter

level

Stock

r

on

';

In the last quarter
direct military take

the

about

1953,

offer to buy} any of such shares.

Central Illinois Public Service Company

slightly

J. M. Dain &

Company

clear that the direct military take
of

Today there

that this calculated risk is still too

on

50,000 Shares

military

1951

the

cal¬

a

still

today

'

direct

Present

■

and

Continued

This is not an offering of these shares for sale, or an offer to buy, or a solicitation of an
The offering is made only by the Prospectus.

i

2,200,000 tons, or about 11%
of the total supply of carbon steel.

become
of lim¬

policy

a

tionism, if we wish to retain our

products.

about

tains of munitions which in many
instances

minum

alu¬

available supply of

of

50%

of impact
it seems 'to me.
important

and in the second

items so as to
spread out, and minimize, the im¬
pact
on
the civilian
economy;
would not buy far in advance of
-needs; would not build up moun¬

risk,

our' nation, cue limitary

Septem¬

of

the

the

with

lead-time

culated.

for the

needed

more

:

some

you

1951),

-

first

doing, would phase the

lead-time

short

desperately

now

-

1,400,000 tons.
was

so

j

v

(July, August and

take

bare
strength;

country would create

and, in

airplanes

heavier and much faster

.

In the third calendar quarter

of

policy

that

mobilization

1 o n g considered a
country, does not have, ot
itself, all that we need today to
keep
strong
and
economically
healthy.
We are dependent on
our
imports of strategic mate¬

"have"

measure

even

metals.:, r;:.; ; r..

sound.

minimum

>

economy,

an

me

ion, remains today fundamentally

'

Materials

expendi¬

;

not

steel,
a

and of

other metals,

is

full measure of the military

,

Paul H. Davis & Co.

•

Sills, Fairman & Harris

of

a

ton

of steer would be

Incorporated

,

bolts,

third

?

Farwell, Chapman & Co.

Mullaney, Wells & Company

.

impact * because
military " endproducts include many so-called
"B" products, such as nuts and

nails,. small - motors, ball
bearings, and the like. The civil¬
ian
agencies estimate that for
every ton of steel, directly taken
by the military, a little over a

?

America,

military expenditures are

an

November, 1950,
when the President proclaimed a
national* emergency, was' funda¬
mentally sound and, in my opin¬

Simplyr stated,

200,000

v

Imports of Strategic

It was

,

ahead in 1953.
•A While

ago,:,;in

limited

under

something

at

on

Including "B" rials, which come from almost
this is for expansion of tons a quarter.
every corner of the world.
We
and creation of new air products
the
current
military
facilities
for
the
much take is running slightly above can no more even consider isola¬

rod is the amount of
' - - 7V - >-'
materials; : particularly; metals,
that the policy used for military
production.Let

limited mobilization adopted

year

Since#a major

level-

quarter and is expected to
off

tons.

140,000

about

moderately in the second

It rises

y.

Dependent

of

measuring

r

Here let

supply.

is

military take oi:

of this sit¬

the implications

uation.

of calendar

quarter

direct

the

mind

air bases

including pay, were a little over
$3 billion and, a year later, in De-.
cember, 1952, expenditures will
probably be at a level of about $5
billion per month with the peak
of
monthly
expenditures
still

who

and

need for structural
the second quarter
calendar 1952 is about 20% of
during

estimated

first

the

1952

aluminum

The military

ing the month of December 1951,

whether it becomes all-out

as

sored

of the copper

is for ammunition.

it in another, way,
military expenditures dur¬

total

not, the impact of the military

would
ignore the cold facts of national
security, prevail in their conten¬
tions, some reduction in military
programs
might result. To that
possibility, I say with all the sin¬
cerity at my command "God for¬

.

level

should

and

ply is increasing but military de¬
mand will also continue rising un¬

about that figure.

Expressing

would also have to in¬
crease.
It is equally obvious that
should those who believe in "busi¬

;

1952

of

In

Structural steel is in very short

little

a

1951.

1951.

lion in

the

should

programs

.

sup¬

munition.

the portion

tures

the economy.

that

is: obvious

crease,

*

of sup¬

only $13 billion in 1950.

magnitude of shooting warfare in¬

.

about 23%

The greatest of aluminum is steadily increasing
steel other than air¬ and by 1953 the supply available
craft
are
tank-automotive
(the for civilian purposes should be
mu"h more adequate than now.
largest user) weapons): and am¬
alloy

going into mil¬
itary procurement of both hard
and
soft goods during .calendar
t^n programs to
proceed as 1952 will probably be close to $40
planned^ and I can and will give
billion as compared with $20 bil¬
you here today some idea of the

ited

is

of alloy

$50

over

with

compared

as

take up
with

1952

compared

as

dollars

total

ahead.

will in

effort

tary

intention, then we
would expect the military produc-

long

1952

throughout the year and into 1953.
In the case of aluminum, sup¬

steels.

ture

users

now

as

/

,

present course, what will

our

uring

Soviet

by

our

of

40%

steel

tension continues through
the year and does not flare into
sudden "all-out" war by accident,

of

about

at

during the year ahead?
are several ways of meas¬

uneasy

•,

ex¬

preparedness

There

ahead is full of "IF's."
the existing state of dangerous

•

off

level

supply in the economy.

The year

ness

than

lower

first

grams

Small

know, nor do you, nor does
anyone know, except perhaps the
men in
the Kremlin, what sacri¬
fice and struggle the free nations
of the world may have to face in

or

the

impact of the military pro¬

I do

not

It

of

because

Including "B" products, it
quarter of calen¬ ply.
dar 1952 the direct miiltary take amounts to about 31% of supply.
is about 23% of supply; including The military take of copper prod¬
is
expected to
rise only
the civilian agencies' estimate for ucts
"B"
products the total take is slightly during the third quarter
In

be the
J.

for

country.

•

Assuming

hold

or

ply

ender

heavier.

Prediction of Military Outlays

A

If

our.

mobilization

limited

I

coming

and

during

20%

pected imports.
The direct mili¬
In the case of alloy steel the tary take of copper products dur¬
impact of military programs is ing the second quarter of cal¬

risks

greater

even

down

charted.

as¬

if

new

the

for

take

slow

of

you

real

surance

but

„

.

could

I

talk

Review

Brief

A

'

,

b 1

e r a

our

conditions
have
not
worsened
there should begin a gradual eas¬
ply. One reason for the high per¬ pact on the civilian economy.
Aircraft is, of course, the heav¬
centage of alloy steel needed by
ing.
'
•
efforts.
; t'
'•
» •>
*•'.
iest user, with ammunition sec¬
The key factor in 1952, and even
In my opinion, both are rather the military is the large amount
needed for jet engines for air¬ ond. The two programs together beyond, is the availability of ma¬
extreme positions, and as is usu¬
craft.
J et^ engines operate
at account for about 70% of the mil¬ terials, which will absolutely de¬
ally the case, the proper course is
Fortunately, termine the range of civilian out-,
much higher temperatures than itary requirements.
probably somewhere in between.
due to actions started by tne gov¬
I believe that we are now pursu¬ did the piston engines of the last
put, and may, to some extent, con¬
war
and4' hence
require
much ernment in 1950, and vigorously trol the military buildup.
;
ing such a middle course and that
I think we should all bear in
larger quantities of high tempera¬ prosecuted ever since, the supply
we should continue on the course
should

and

Muni¬

the

of

1952.

about 32% of supply. In the sec¬
ond quarter of 1952 the military
vocal, say that we are moving too
take including "B" products of al¬
fast, that they do not think there
is really much danger; that for loy. steel is slightly higher and in
the sake of "business as usual" we the third quarter is expected to

is "The Im¬
pact of Military Production Dur¬
My subject today

as

exceed

not

calendar

year

"

one-fifth

about

for

need

This is admittedly a

.

Defense

Chairman, Munitions Board, Department of

ing

prod¬

To review briefly for a moment.
"guess" structural steel supply does not
In
the case
of steel, we see
figure, and is higher than World seem to me to be exorbiant.
Copper presents a serious prob¬ ahead of us an increasing supply
War II experience, bu't even if it
is on the high side it would indi¬ lem, primarily because of the fall- —almost,
fcyut not quite, keeping
cate that the total military take off in copper imports.
pace with the increase in the di¬
While the military take of cop¬ rect
including
"B"
products
during
military take.
■,
the
second .quarter
In
the
case
of copper, some
of calendar per products is not much higher,
1952 will not exceed 15% of total tonnage-wise, than was antici¬ modest
improvement in supply
supply of carbon steel and, if pated a year ago, it becomes a can be expected but the acute
higher percentage of actual sup¬ shortage
present plans carry through,
will
probably
persist
ucts.

Impact of Military

easy

the form of "B"

in

needed

military effort in current

13

(377)

The Commercial and Financial Chronicle

.

.

.

^

Stifel, Nicolaus & Company

-

Dixon Bretscher Noonan Inc.

,

-

.^-Incorporated

Carl McGlone & Co., Inc.

Dempsey & Company
^

-

>

.

.

.

January 23, 1952.

.

•

.

1

"

,

.

F. S. Yantis & Co.
Incorporated

;

16

14

The Commercial and Financial Chronicle

(378)

carried

The Business Outlook

at

on

a

will;?

which

pace

Truman Forecasts

sustain
ness

a
very high level of busi-'Y
activity through the year 1952.

For 1952 and

fact, the agreement is so unan¬
imous that it is distinctly worri-

Beyond

It

some.

Director, Department of Economics

Although I have worked
it, I cannot escape the

dicate

will be confined to 2-3%.

I

competition in capi¬
Expects later post-mobilization period to
severe

still

I
i

President Harry

ja^ 16,
Eco'nomj[c

in-

to

nation

a

rich

that

have

we

consumption of

share of what is
in

the

think

it

will

be

extremely

Discuss

Business

as

from

an

point

f'er)

of

-exactness how

think

large

This

of

share

this
o

the

West
'

consumption,
it is

as

some¬

times

if

^

pre-

all-out
time

any

war
soom

j

1

headway

against

combination of in-

a

I

it

could

come

subversion

and

external

that

is

d^n .a

P u b 11 c

tries to have
jn

the

That

the

lot of trouble

a

The percentwill obviously increase as the

midst

of

notably true of most of

was

textile

industry *and

ofthe^

secment

industry

Which

indusWe&re

TheJe

way out of the hoie into
which thev eot bv ororiucine a lot
than could
re man couia

be sold immeriibe sola-immedi

more

ately.
A backing
disappearing,

of

up

is

good^mad^of ^mTtT^whi^^^ere
abundant

so

to

be

months ago as

few

a

positively

painful

their

to

possessors.

;

„

4

r\

u:«u

„

i—i

+i

u

saving.

which

ex-

axiomatically that the

C1A1^

say
?Um

H

1Wnu»vS

ity and the deepest depression depends, at least in its inception,

no

That is

T

hemp

that

P

that

it

think

I

will

I

not

have

ha^ ^°/rpart in
(3)

annoar

PP

^
^

—nerhaos

that

4nrv

monumental

the

^
Reverend

Tiad
.

the

of

the

is

lower

;

........

And

During

saving
rate.

much
and

less

probably manage to have
after all.

In that he

pletely wrong
his

m

a

was

Rb-

com-

as Karl Marx was
that
capitalism

has

become

far

more

*

In

discussing

struc-

who

PeJs()nal and business
/?^8e5 .°

chnii

iiiSifv'fhP fnnr^

As

twV

imoortant

basic

Aristotle

•

bavp

■

"the

man

-

made

all

•

of

know

vou

there

ma16? elements7n Sw
•!
a*

u*

arp

0f

:'?Qi?;???'

Additional

curities will

Taxation );?Y■?'■ /?.?:

?Adequate taxation

is

the

ri'fnT cnn.tr,.ctto"n
dence construction.
ii?

I

have

seii

m

the

mentioned

be

so

Pn

for the

to

borrow

se-.

from

of refund-

purpose

method of saving, and it is also a
g°°d method of supplying the

is not to lead to price inflation,
private spending by consumers

and * business must • be held in Government's borrowing requirecheck. Taxation pays for the Gov- ments in a non-inflationary man-

,

-

*

-

-

-

Holders

ner.

savings

of

bonds

maturing Series
now
have the

ernment securities.

a

.u

.

i

and

$10

billion

•

in

henre

j

or

This year, in contrast, the trouble

fs'more"'likeirto'arise"'fromThe

C0ldd

sell

1

a

the calendar

about

one-half

J ®

.

,

and

alt

included

will

be

uarticularlv

But,

the

even

troubles

to be general enough or to go
deeP enouSh to take anything like
aR 0f the bloom off the boom in

1952.
now j

COme to

contrary

to

the

most 0f those who

reasons

and

many

why,

probably
them-

concern

most people
equipment

this

01

tals

lost

the

number

amount,
of

the

d

,

borrowing

private

oorrowing

the- spending

individuals

amount

Control

private
and

a

,

can

power

businesses

of

and

ousinesses,

ana

thus add funds to the aggregate
spending stream, credit control is

pro-

Govern-

the economy' This type o£ contro1

A

fiscal

current

tor tne current tiscal

ihe functioning and growth of the

endlIlg Ju"e 5°;,1952' Jhl3 economy, especially now when
If fxp+eCieJ ??
followed by a rapid expansion in certain vital
J'tosYze for'theTisc^
to'vf sectors of the economy is necesvrar'

unTes?^

raise taxes ;s taken

verv

'

.

T

oe

made, at

reviews

my

are

being

request, of the pol-

acnievea

by

' rtfrt' Credit Restraint Program, which
elim-

operates under the sponsorship of

loopholes and special pnvcand ^ some tax rfte. 11n"

Federal Reserve System, continues

the

,?ew ^ax legisla-

Board

Governors

of

nthf,

restore

a

kg exercised

ernment's budgetary

to

the

care needs

not to discouraee

al¬
to
ac—

tivities important tor a strong de-

_

contribution

the

3p-

baianced budget in the

1

purposes,

^ugh continuous.

fiscal yeor, and would not

expen-

of

to be helpful in discouraging loans

^ou d,scarce" for less essential

"'Y ^major

busy scrambling for business

sary'
Periodic

soon

*n view of this fiscal outlook, I |cieg
Government lending
urgently recommend.that the Con- agencies> to make certain that
^f.ss» as a minimum, provide adpromote the objectives of the
dlticmal revenues
the amount defense effort by restaining less
j?y which last year s legislation essential lending. The Voluntary

neonle

most

as

for

augment

,

deficit

think business-as a whole is } ia
g°ing to get more competitive as
the year wears on They) are my
expectations that:
?Yvi>v(1) Government expenditures ^
for defense are not going to Jnmuch

of

Since

late

came

,a ]

added only

year,

Yuitv ^"the "tax "slstem

fl7vf.s ,wi^h Jhe business outlook,

as

a
.

8

Credit

bill

smail ^eai

I anticipate that

companies

The

more.

enacted bv the Congress

\\as

than they

more

Dr0mDtlv

in-

SlSeUlr0.mpUyi.he???'
1'
u

hold savings bonds and other Gov¬

•Mj' last year' 1 asked for a
tax program i? yi,e?;!

was

nave mentioned

*Yu

couid

r6S1"

C"

Last year, the trouble

sales executives would

you

nriccs

reduce, the need for

Government

banks

essential,

This is because shortage needed.

the boom. Without them virtually
of

siamc

to assure a sound fiscal posi- ing maturing security issues and
tion and to maintain economic financing deficits. Buying United
stability. If the added Government Yates savings bonds and other
spending for the defense program Government securities is a good

j^ey materials gives promise of

crease

j.

«PiaTivpiv

private savings in Government

Requirements; for

?! tV"?'?': r? 7'"'"

situation which perpetuate th?nk thevTe
tnidf Plant are™ey. and
(2)

;I^SS
all

lure of

"

so

Ibouf bL^

It

,

anything

malce assumptions about the busin®ss
^bat I am giving
ls a set - of guesses which, if
PraXe Mistaken, will be at
e
studiously mistaken.

to^"

iar, .mop tpppryinx

uince
hlnce'

wise

t

right idea about the importance of optional consumption
150 years ago.

or

unusually high

at an

was

'

?

:

personal

-

visions which

Bases for the General Predictions

the

over

saying this

-®111!!

forecast

progressively submerge and
■degrade the laborer. But Malthus

io America

heavy.

2^rT%

1

would

had

m

a

famine

as

year.
how much is

1951,

+

expect

would

we

me

of

most

infla-;/

general

very

a

ability that the improbable will afflicted in this
regard.
happen." Nonetheless, in handling
s0, I do not

impossi-

•

be

ask

vou

observed that "It is part of prob-

Malthus then went on. of course,
to predict that in due course lawould

whole

a

much during the

up

ancient

;

rewarded

as

"

^

erally

Except in

..astries

level

consumers

W^^ws ^e .must^to^
Stahil

hudeet
budget
dogmatically, 111 toss a salute of fact that
they cannot get material,|s exoected
recognition in the direction of that enough to oroduce which thev
expecJ®ci

considerably in a year of
scarcity, without materially diStressmg
themselves.
A
famine

borers

orice

by

?Y;Y;Y?.

tionary demand.
President Truman

high

Dollars of income

not spent

are

nec¬

private spending.
privilege of maintaining their in¬
Three major tax laws have been vestment in these bonds for anway> j am not prepared at this enacted during the past 18 months, other ten years, during which the
time to nominate candidates for They have increased the annual bonds will continue to earn mterthe 1952 trouble seat. But-just as yield of the Federal tax system by f* atfcthef sameover-all rate. The
an example, I should think that about
$15 billion, or approxi- efforts of the Treasury and other
some companies which either mately by one-third.
This is a Government agencies wilU conbuild or furnish residential struc- good record. But it falls short of tinue to be directed toward entures might find the going rather the amount of additional revenue couraging individuals to b^y and

hole#

as

else about.the uncertain future

present so liberal,
classes might retrench

almost

be-

is
a

tnem will take their place in the

ine price level as a \vnote that they produced

Aeain if

at

seems

whole"—will

much fl! say not over

very

therefore

The

^ So

won

Malthus,

general idea in the
Then he wrote:

America, where the reward

labor

counted

increasingly competitive

(4)
,1

nP««imic:f

Thomas

a

be

to

the year wears on.

c()n_
con-

same

1798.

"In

as

COme

-'

j

year

the

on

Woueh

"business

,1-

Quite

^

Many segments of business

discovered

anything new In this element of
-optional consumption which gives
you
sales
managers
such great
importance.

95L, D90nt^Qt
.

business

your

sales executives.

as

e1fi1orrf%.,laJ'ge^

me if it turns out to be 2 or 6%. ~
A good
C(?™Panies
wll?Abe asking, What is this prospenty we .hear talked about. We

to

«ity to buy.

^

than R fwas in

selling goods and
people who are under
pressure of immediate neces-

services

lllfeil A1*

total of everything produced

"J 1952 W1

in

•on our success

Yu\ 11UVT

l+hat' ine Physlcfl terms the

promote

businesses do not add to

or

E

difference between great prosper-

to

Federal revenues by $5 billion.
:
to
-'' T/ie portion < of the President's favor t both
saving
and stable
Report dealing with this and kin- prices. •
\
;Y Y'
dred topics follows:
Increasing?: the investment; of "

inventories is
before. 1952

and

private

ncighbor- .
laie, Relatively stable prices enneiativeiy siapie prices enhood of $85 billion) together with couraged increased. saving, and
recommendations for further leg- increased saving helped .to : sta-

larae

a

also

level of

expected

**seal year
(which are in

boom.

general

a

very far advanced there may well

—

essary

Penditures for
.e com in&

right

hold down

to

are

programs are expanding, it

®

possible for individual companies and indeed whole indus-

the

,

this

in

produced

} e

y

basic structure of our 1952 selling •
,
5
problems will have these general Trouble "for Residential ;Builders
characteristics:
It is a safe bet, however, that
(D Business, as a whole, will as industries which were in deep
r

country is optional.
■age

p

a

general

a

r00m ^U1^e e^ec"

up

the neighborhood of 40% of every-

thing

eat

cannot

was

^•

—-

is not imminent but that anything
with
a
plausible demonstration which might plausibly be called
that consumption of somewhere in peace is also remote, I think the
do

me

You.

we

spending to the level of available
supply, while the national security

made

...

a,°.

going to start one,
particularly true

"ively1 S1

Keezer

M.

you
~ ~

.x

made

a

If I am right that World War III

Dexter

called.

But,
v,

hundred

a

in

military pressures. It is my u.nhappy impression that they are

nal

o

as

Govern¬

for

financing.
Saving

If

the esti¬

mates

business

basis

pay-as-we-go
ment

d oic uments
were

obviously.have lots of ing 0leir

by

-

about

possible during the period of
mobilization, to a current

as

defense

of the

average, even if it is very high.
And we found during i951 that it

me

make

to

ternal

range

t i

p

Russians

an

at

are*

to

they

'

of

West

they

room

is

represented

by

winning

seems

since

total

our

industrial

the

Under such circumstances I don't

degree of

production

and

—

in fifty if you

one

the

.,

it-primanly

see

chance

one

with

with

I

as

view

(make it

ing. I do not
pretend to

a

Soviet Success

of

economic

of

haven't

postpon¬

any

Chance

However,

to

talk

bit.

portant that we return, as quickly

nf

outstanding

a

have

expenditures

defense

and

The

feature

To

been adjusted downward. It is im-

viic
his

j,

_

visers.

whole, however, begs the issue

.

doing

know

that

true,

No

direct per-

any

con-

venience

those

bet

can

of

part

Report
to
Congress,
the Annual Economic

along toward the
Economic Ad.
the year. But, as a whole,

Cannot

considerable

a

isn't

large

a

produced

postponed without
sonal

become so* pect

n

reach $16 billion
quickly.

may

penditures after the peak of the
defense build-up has been passed,

his

going

Whole

As

„

deficit

increased

are

Annual

Review bv
r

taxes

S. Truman, on

submitted

akmg with

do expect
cajjccl
encounter somewhat
uu

good.

depression.

severe

that 1953 fiscal year

warns

unless

hard

As I shall

later,
idici,

nine

business
end of

be free of

little

a
u

uncut:

heavier

tal goods industries.

and

same

and

general conclusion.

competitive; price level's rise
Asserts toward end of year plant

Huge Budget Deficits

Congress, Chief Executive indi¬
deficiency of $8 billion for year ending June 30, 1952,

a

dan¬

whole will become increasingly

decline, resulting in

fore¬

that is always

pack,

at

On premise of CoI4 War's continuation short of all-out war,
Dr. Keezer predicts 1952V production will increase 4-5% over
last year; prosperity will be highly selective; business as a

investment will

that the

suggests

cates

•

gerous.

McGraw-Hill Publishing Company, Inc.

Thursday, January 24, 1952

.

In Annual Economic Report to

casters have taken to running in
a

.

;

In

By DEXTER M. KEEZER*

.

? a fense

Gov-

economy.

Selective

position and

credit

controls

are

not even have
tdward the eJJd of the year tQ the stabilization program. The Particularly useful under current
basic assumption- time to attend meetings like this,
neak* additional tax revenue will helo conditions, because they reduce
iii fact the most basic
assumption These elements are:
I0^ aerense planls Passes its peak. ^ minimize borrowing by the borrowing and spending for some
about
this
structure.
It is1 that
(D The
defense
mobilization
("3) Civilian consumers are go- Government from the banks Bor-"of the less necessary kinds of
World War III is not in the im- touched off by the war in Korea. in§ to be considerably more choosy
rowing from banks
more' than g°ods> particularly those which'
mediate offing. On this
subject I
(2) The program of capital in- fban
bave been most of'the borrowing from any other source, compete for scarce materials. The
have absolutely no credentials as
vestment by business
which, in
me during recent years.
T
tends
to
enlarge
the
spending R°ard of Governors of the Fedan
authority. All I know is what turn, was'touched off in
large part
R seems clear that for the year stream and thus to increase in- era^ Reserve System is using its
I read in the
papers and, in the byj th^jdefense program
^ ^ whole capital ^expenditures flationary pressures
powers under the Defense Pronature of the Iron
Curtain, I susAmong
professional' business by industry wUl carry on at a;.. with
tax system strength.; duction
Act to limit borrowing
Ihere

our

is

1952

selling problems,"

that

might

you

one

fj dlfeMrD^nts^asS^1

„

,

•i

11,
,

Thirteenth

pent

1™

r

New

n

Or.

v

Conference,

,

Keezer

England

Boston,

,

before

Sales

the

Manage-

Mass.,

11,1952.




Jan.

forecasters there is virtually
imous
c

^nse

asreement
,

...

mobilization

investment

by

that

.

and.

industry

unan-

thp

Hp

deCapital

will

be

,

.

,y

fu

p?rkaps fvea

higher than the record breaking
armnai

IpvpI

nf

lQSi

Continued

Rut

on

thprp

page

22

ened as I recommend, there should

iu

Qnffipipnt

mwnnt>

unHpr

,

thp*

sutlicient revenue, under tne-Tbp
Security program now planned, to Y,
cover

fully the Government's

ex-

t

.

.

t

„nrir|9

,

Consress

last

hnnsins

goods and new housing.
•

vear

reduced

,

Continued

on page

3o

.

Volume 175

Number 5084

.

.

.

15,

(379)

The Commercial and Financial Chronicle

_
«

This

The President's

From

Washington

A head

Year Estimates which indicate
be matched with estimated
receipts of $71 billion, thus resulting in deficit of more than
$14 billion.

Your

Truman

attend and

correspondent is frequently called upon to
to

What

Federal
Fiscal

1953.

his

Government

First,\a

he

man, a

reassured but had

been

be

there

at

dollars,

card.'

a

the

and

dollars

over

1950, the

last full

the

about

end

of

under

in

war

office

showed

it

all want

end."

to

there

Well,

would

needed

be

habilitation of South Korea than
the

V-;Y-

war.

It

so

survey

a

was

: '

now

short

of

meeting the

the

absence

revenue

legislation,

pect for the fiscal
dollars

billion

estimated

fiscal

..

deficit

year.

he

was

in

the

for

pros¬

6.2

than

the

the

First, the high rate

of the

results

the

flects

of

amount

tremen¬

made

security programs—military serv-

,

ices, international security . and
foreign relations, the development
of atomic energy, the promotion ;
of defense
production and economic stabilization, civil defense,
and
merchant marine activities -

the smaller
obligational au¬

new

thority which I am recommending

substantial

the

indicates

portion

financial requirements for

of the

Major national security programs

build-up that has
in the appropriations

military

our

met

been

already made.by the Congress.

,,

I have

j3i

hunch he

was

"

1953

1952

Estimated

Actual

all

Estimated

-

$37.0

$48.1

$62.7

$71.0

40.1

fRecepits (under1 existing tax laws)
# Expenditures

44.6

70.9

85.4

1950.
This decline
during the period
goods and serv¬
ices which the Government buys

.

or

•

y

.

,

was

rest

•

The main point that I have in all this, T suppose, is that here
a

of typical American businessmen, beefing, like the
about government intervention in business, high taxes

Actual

group

of

us

C

Expend, for major natl. security programs
Expend, for all other govern, programs

and

bureaucracy, but almost wholly dependent upon the*government for their business and hopeful and anxious that the Govern¬
ment had ways and plans of manufacturing or creating, more
business;

.

'

7

When the
alarm

about

meeting

'

stand

the

this

+;+

Total

Budget

expenditures

that

annoys

me

so

enough

This

*

announcement

is not to

>

much

as

such

the state of the budget
this that happens when bu-

isn't

it

About

as

has reached its present hold
two

at Hyde Park

years

>

•

Canadian

World War III

the

two

countries

or

countries.
When

to

over

•

••'

Within;

year.

18.2

21.2

20.3

—9

have

'70.9

8514

133

been
-

reduced,

Continued

others
on

supply

and

American

police actions

would

be

pooled

or

the securities herein mentioned.

Company

Common Stock

the like, the

—

$.10 Par Value

that

police action

•

Price $5 per

us

share

'

of the Canadians.

The defense officials kicked the Canadians in the pants and \

decided to play along with free enterprisers Reynolds and Kaiser.

,

Copies of the Prospectus may be obtained from the undersigned only
in states in which the undersigned are qualified to act as dealers in
securities and in which the Prospectus may legally be distributed.

'

-Today the shortage of aluminum is such that Britain,is to
give us aluminum, which Canada diverted to that country,, in
-

;

for steel.
Steel is in such short supply that Ohio, for * •
example, couldn't get enough to build a thruway or super high- '• ■?
way.
European countries learning of the State'sT predicament,including Belgium, bid against each other with offers to sell the ;v
steel.
Ohio> of course, is in the heart of this country's steel
,
industry. Furthermore, it is my understanding that the steel-. ....
return

j
*

;

offered

by the European
steel firms. .* •
:
-




39

officials met

'

r

have-

page

-

the

be helped instead

: -

.

International Resistance

-• '■

the people:

pared to take it.

.'

fiscal

this net decrease, some programs

X

came, Canada said it was in a good <
with aluminum and our defense officials pre-;
But up came private enterprises Reynolds and
Henry Kaiser to insist that American aluminum producers should

fix

present

266

which
Canada could produce best it would produce for both countries,1
that which this country could turn out best it would for both*
resources

the

$65.1

be construed as an offer to sell or as an offer to buy
The offering is made only by the Prospectus.
,

in the atmosphere of Roosevelt the Great and de¬

cided that come

of

ago

1950

$49.7

325,000 Shares
,

*

reaucracy

ex¬

for

44.6

.

:

,.j

_____

of them spoke to me with ■+;■

of

strangely

Dec.

;

40.1

survival.

However,

22.3

1953,

;•

-

was over, some

Truman

sort

«

.

year

1953 over

Est.

Est.

$26.4

+

.

all other govern¬
ment programs will be nearly a
billion dollars below the level of:

1953

1952

:

-■

budget of $85 ' billion. - How Jong can
stuff, they asked. I am sure I don't know
the answer to that one, but this much you can say: It will continue so long as there are important groups such as I have mentioned
who have become depended
upon the
Government for
we

-

Actual

$17.8

fiscal

penditures

<—)
1951

-

rising.

the

For

.

1950

year

occurred

have been

'b Inc.

charged with keeping our maritime flag on the seven seas—
They were not, I gather, Kurt Carlsens.

are

declined

v

when the costs of

-14.4

-8.2

+3.5

American shipping men—merHwho

had him buttonholed.

attack '/oa!

the

since

all ci;

Budget ei>"

total

Government programs
9%
since
the

other

fiscal

BUDGET EXPENDITURES

V'

in

As
the
accompanying"i
indicates, expenditures for '

have

has

-3.1

+ + Deficit (—) or surplus ( + )---

just bragging and regretted it because

when I left the meeting, seven

increase

table
/,

1950

bassadors;. that is, fellows who would just knock around in South
and talk with: the governmental officials about their
needs;, what they needed to improve their agriculture,, their, industry, their sanitation and electric power facilities.
.

dominate this Budget but

account for practically

also
the

America

■

riot only

.Korea. ''

pillions]1951
Actual

countries has the imprint of American
.

*..

••

F. Eberstadt
A

January 18, 1952

&

.

;

Second,

started.

J
of the

expenditures included in this
Budget are for major ,nationai

production

of

flow

the

ting

than three-fourths

total

been

has

that

effort

More

during the past 18 months in get¬

| Fiscal years. In
4f

"

Budget Expenditures

penditures

•

expansion.

planned military

BUDGET TOTALS

inadvertently men¬

further

no

most of our currently

completed

expenditures for military
equipment estimated for 1953 re¬

;

:

if

and

develop,

expenditures after, the fiscal year ;
1954. J By' • then we
should have •

the groundwork for future

in two ways.

current

_

tensions do

aggressions are attempted, I hope
we will be able to reduce Budget.

•

for about three Point IV am-,

market

in

1953,

year

greater

deficit

a

dollars is

billion

14.4

in
of

increase

expenditures." In
;-new

not

help

of

dous

happened that the first speaker, the man who smacked

that

dollars

1950.

being used in fighting
•

current

the

over

The increase in receipts will fall

*,

in the re¬

tonnage

increase of 8.3

an

to come.

reflects our progress to date

;it

71.0

at

fiscal year, and 34.0 billion

just concluded by his

his lips and pronounced his words firmly, had
tioned

dollars

of

"">;■

-

dollars,

Korea, "not that we

more

estimated

,

,

progress.

are

.

a

us

If new international

made thus far, and

have

a

in the years

our

reflects the prog¬

Budget

we

it lays

President Truman

billion

"

don't

ress

billion

.over

This

;

on

present

laws

tax

.

the

attack

Receipts

■u

greatest interest of all, however, seemed to be manifested
in the Government official who said that undoubtedly his auditors
worried

fiscal

.Korea.

The

had

aid necessary to
them to grow stronger.
of

,

carry

critical

the

with

overseas

margin

before

year

the

allies

provided

have

We

not a

size,

its

for

long way forward
on the road to security—at a pace „
which is not only within our pres- ent economic capacity, but which '<
will enable us to grow stronger

to

our

gency.

is

It

this is

all-out mobilization.
Budget carefully planned

Despite

Budget

ability to mobilize for any emer¬

bil¬

need to safeguard the
is enorm¬

we

ously expensive.

We have returned

Air Force. We have
greatly expanded our production
of military
equipment and our

wings to

year,

lion

our

18.

,

security of this Nation

than 160 combatant
vessels from our "mothball" fleet.
We
have
added
more
than 40

over

45.3

strength

of our armed

increased the
Army divisions

to duty more

current

fiscal

another

_

85.4

dollars

of

10 to

burden for our taxpayers,
because the job of building the

have

We

involve a

II.. It will

War

.

since

year

any

heavy

rebuilding

We have more than

defenses.

doubled the strength

billion

14.5

his auditors had

then, we have made sig¬

number

increase of

an

become

fellow,

another

appeared

World

our

in

expenditures

in

/

-

Budget calls for the largest

This

must rearm in

progress

not yet in pro-

some weapons

duction.

survive.

nificant

esti¬

are

and

world

free

the

that they

to

Since

billion

Government
official, who talked about how he, under the Point IV Program,
was
seeking to improve the harbors of South America.
Thiselicited considerable interest from shipping men present who had
shipping interests in South America; but gales of laughter swept
around the table when a representative of a purely coastwise
shipping interest asked if Point IV applied to American ports.
This fellow, I learned later, was considered by his associates to
Then

recom¬

order

from

convinced here
Government official, with whom they must play ball.

necessarily

was a

United

my

transmit herewith

mated

got the impression

you

the

forces.

from

down

sat

of

tures

improvements, etc. He was a representative of the whole
people, he assured his auditors, dedicated to but one purpose, the
winning of the cold war, and his auditors dutifully applauded;and there must be hardships but he was one firm enough man to
see that these
hardships were spread out equally.
\
When

Congress

of

major military items except
of the newer model aircraft

our

some

the

and

Nation

nations

other

of

all

peak production rates for

the

the face of this grim

this

evidence,

strength.

economic

our

By the end of the fiscal year 1953,
we
will have reached or passed

in order to gain

war

In

its ends.

ending June 30, 1953.
Expendi¬

for port

not

part of

which accompanied
estimates, the Pres¬

mendations for the Budget of the
United States for the fiscal year

the Government
Carlisle Bargeron
whom you cohld tell was a natural born ex¬
ecutive, in Government, or out, because of
the way he pursed his lips and smacked his teeth.
He told the
assemblage what he was doing to relieve their worries about dock
space, allocation of government shipping, allotment of equipment

fellow

resort to

to

States:

being done and what is to be done to them.
A
meeting I have just attended serves
as an example. They were a group of shipping
men.

the

I

what is

these fellows

tell

to

of

develop¬

further

and

program,

Eighteen

realized

ings is that the speakers, except me, are from
the

30,

ending June

the introductory

Budget

To

meet¬

these

about

most

me

Congress

ident stated:

questions.

ask

strikes

In

to:

Budget estimates for

Year

message,

the

something for which the home office should
pick up the tab.
But mostly those meetings which I have
in mind are made up of men really desirous
of discussing kindred problems and picking
up
whatever
information
they
can.
They
make notes with pencils and pads, listen at¬
tentively and

submitted

the
the

gatherings of businessmen assembled in meeting
in what is wittingly referred to as the Capital of the Nation.
Some times they are just fellows on a lark, fellows who have
sold their home offices that the meeting is
talk

a

quirements of our atomic energy

months ago, the un¬
provoked attack
upon
the Re¬
public of Korea made it clear that
the Kremlin would not hesitate

*

21, President Harry S.

by pro¬

continued re¬

allies overseas,

our

ment

On Jan;

ground¬

the

lays

viding for additional increases in
the strength of our armed forces,
additional deliveries of arms to

about $85 billion of expenditures, to

of the News

Budget

work for further progress

Submits to Congress 1953 Fiscal

=*By CARLISLE BARGERON

make

Budget Message

Co. Inc.
.

'

Zuckerman, Smith & Co.

I

16

The Commercial and Financial Chronicle

(380)

closing,

The Investment Situation
in New

mitting

lite

York

small

portion ot their

common

stocks. Common

materials. This

to invest
assets in

a

become

legal invest-

lidence

in

our

is

P

America's

the

brains. You can have faith in our
future. Think of this country 10
years hence with 30,000,000 more

New

England states, and we
see
pressure
being exerted and
legislation
proposed
to
permit

savings
make

banks

in

limited

The

vestments.
whn
who

in

to

stock

investors
mrtNiacirtcrlv
increasingly
stocks may

common

It

estimated

is

85,900,000

some
:

insurance

iife

The

country.

there

that

are

holding
policies
in
5v>
this
beneficiaries
of
people

stocks

permanently
being taken out of the market and
«

are

"P

Stock
makes for thin maikets. The stock

liabilities

the

in

likewise,

we>

of

goods,

living

need

®Vinllati? term for
insurance,
good
think

t

a

and I

common

the

grim,

a

David F.

eventually,
ordeal

an

both

or

terrible

warns

d°fa

™ .^.e

us

b®

,ad

y

'

.

...

h^bee'ii"pressured

'

TT

by

indirect

like hi Greece

direct attacks

£>PeBer]in
tb
nrp„urG

?re,s 1

force

^rea

greatest

free

mar-

In
an

recent

years

had

have

we

the

in

increase

enormous

JL

a

investors

million

This

growth

continuing at a
is an excellent

is

rapid

rate

thing

because

and

ideal
.

.

...

,

.

free

can

enterprise
ctttapiibc

Itcc

Through

more

finding this an
invest their funds
are

to

way

.

and

more

small investors
„

invested

have

billion in Mutual Funds.

$3

these

.

a

SJStc.M,

accurately determine the number
shareowners in America. The

plans"ve'^been St'up

into

«cinn

build

Tf

rfionth.

a

nneeiKio

io

It

possible

is
substantial

a

to

results

10-year period, the

a

...

.

ff |
aiidirs,

Dom

"The

eood

the

city

ing.
corporations

in

Asia

was do

future

our

tre-

Wit-

Gas

^Republic

allvthe

nt«at

we

tax

introduced the
into

retroac¬

the

cannot

omy

It

for

operate

is

econ¬
many

and remain healthy, sound,
and free under taxes and tax pol¬
years

oWoiy

ofy pro

mZ af.

t

P

t

productive
capital that is

David

F. Austin

necessary

The indirect as- to provide

aggressor-

a steady increase
productivity, in wages, and

andthing we do know, that wttonal tocome.^
thUS harder t0 °PP°se' "My business, the

the

postwar

had

break-even

point, and
ratio.
"The

profit

a

worsened
immediate

pressing problem of the in¬
is to improve its earning
he declared.
"To meet

dustry
ratio,"

this, all departments of the busi¬
will be called upon to con-

ness

_

in tribute in

in

steel

higher and more
production costs, a higher
has

rigid

most

the

manufacturing

all

during

enterprises,
years,

tho

t

like

industry,

s

o

noted that

Austin

Mr.

economy

S

of

led to a stiffening; of Western
determination to resist and stop

„

major fashion, the

a

engineers, and

materials

raw

ex-

perts, the operating departments,

steel business, and the legal, industrial relations,
research and finance people. All
will share a basic common responsibility," he said. "We must
look to the cost accountants toperiphery they have been looking, the early years, our lot has been provide rigid objective appraisals
and stin look> for soft sPots at that of
an
enormously hard- of such improvements as are
which to probe and perhaps in- working, enormously productive, made," he declared.
one

has not been a notably well-to-do
offspring of the free enterprise
system," Mr. Austin said. "Except
1
for a few financial windfalls in

^

hut

th^ir

r\f

arpa

,.rOQCO

trease the area of 'heir

A cease-fire in Korea will not

a

stake

in
a

this promising

shareowner. Buy

finaneiallv

middle-class

verv

but £fn;
financially very middle-class R. A.
Clt,"Between 1926 and
Cunningham
1929, years
Detween ia^o anoi m, years
°l^ref Prosperity, the relationWith Ernst & Go.
"Bet

stories for investment Buy them
wlth an idea ot long-term invest™e„t. Buy them as inflation »™r-;
anceance

*v

.?,

,

J America is still a|land of op^
portupity, and big rewards awaft
U11U U1S lcwulu/,tiXt
those'

who

resourceful; /{he
ones with faith in the future.-

&

are

,,

^

.

which to pre^

ten cents on the dollar. The profit

P

^^Aulm4
in

bnilH

m

lt

so
Ar
or
us

un

u\™

creatiL.

th

,

tnttoue

otrpnPth

onr

b^

8 »c
th<*

'f

pp.

bowpr

potent that no-enemy system

mm hi nntinn
combination will ,Hnw'n attack
will dare to oUuni-

or

allies.

our

Peace

theTfl^
'■

1

Midwest Exch.
Committee

of

the

Members

Midwest

Stock

Harold F. Laun, F. S. Mose-

Co., Chicago, 111.; William
Daniel F. Rice & Co.,

Rowley',

steps possible have been taken to

f.

->nut
about t.hp impact nf thp military
the imnart of the militarv
programs upon small business.

Ohio:
Ohio; Arthur Metzenbaum, Will
Arthur Metzenbaum. Will
S. Halle & Co., Cleveland, Ohio.

started

ratl0 tor_an manufacturing indus-

waa "J**
Rat10s as hl^h as 25% were recorded in this period for two industries-soft drinks and auto^V"°'
mobiles.
"In

the

depression

1931

years

9M,' «* Pe'-formanee of

the steel industry
main

Exchange has elected to membership:

4bonds

relatively

was

Net income

1.7% of net assets.

11*

CHICAGO, 111.—The Executive

ley &

leadership and strength,

pajd

even worse.
_

Production in 1952

accounts

in

become

-

Impact of Military

in the happy days when savings
at $i/2%f and ^be inc0me tax was

eabt

Continued from page 13

,

Gentlemen, God has given us Pr,eP\0U®_;-lirie'_.s ncT?T, Kc>rea^^in

time";can*

national

?

a"y> the RePuWlc of constant
increase
in

£V0er °U

^

Buy

ic Co.
Elect^ric Vu; $300,000,000; Aluminum Co. of America

American

—

to - war which they are deter-

"uy*

Carbide

$250,000,000;

income of

*

ro^Arrount

or-

victory

a re

the expansion plans of Union
lans of Union
&
Carbon
$300,000,000.

ness

Ufp

—

picture.
obvious, I think, that a free

^£
a

communist

^ ^st'thlngTe doltor wfll

f f 7eelfn Stha tSodstocks

great

our

have

to

seem

mendous faith

nf

lo
,
and
local
ana
naiioiiai,
of "the count ly'ltTs

future. Become

The managements of

W11v

—

tive

X. FZJlX

give peace to the world. To the
Soviets, Korea is just an incident

,

little short of astound¬

are

Amnripon

:„e'
Dener
cinzen.
ne

investment

fund by investing a $100 a month
and- letting the dividends
com

pound. Over

w

"yv

year

YY

JaAT the fanatic Soviet intention to
.1"",,"'0the free world with
l."e aa™"" dominate I°l
'ag^v? V°£*na™
communism has not altered nor
iff
t abated. All around their vast
stockholder and feels he has a
,

-

•

National

free

Europe

contemptuous

a

our

Staff^^t^tSus'eftort-detect>
But
1JZ

/'"YYV

profits.

of the individual

88%

men who run the companies
Steel Corp., in an address before and up to 70% of the earnings of
the Birmingham Chapter of the the companies themselves. Last

ef-

mgn as, ao,uuu,uuu, ana ine invesi- sauits have been much harder to

fcm^ ^in .Ltional
poUtiSI
goth

small periodic investments ol, say

$100

aver

j^o^innn irln th! Llf the

funds,

mutual

Exchanee

sto„k

bv

bit

.

growth of the Mutual Funds. Over
over

New York

that absorb bulk of

Executive

Vfce-President of United States the

the

an

the

alHf

where aU of

tossed

b

from

us

from

tbenCe

where

oirinointed in

i\ew yoik oiock n.xcnange Korea.
r
1S now conductin£.a PaR to try t°
These direct assaults have each

the

of

one

kets of the world

be

taxes

Austin,

icy of that kind."

blockade,

waq

is

raight

point in the cycle
"inflation insurance."

F.
-Y

.

stocks

this

under
David
tc
A"

a*^a iq4?
QireCl dliaCKS, IlKc in Vjrieece a n t S
at
h
th
Communists
r>irm{noham
" ed to caoture the Mediter,

market is after all simply an auction market controlled by the ageold law of supply and demand. It

at

Austin, Executive Vice-President of U. S. Steel Corp.,
free economy cannot operate long and remain sound

a

Every

tbiq

to

times and

our

says

of

signpost a]ong

every

?a"&?*°?,Ld_™b

a„d

is

'us

bv

Doints

insur-

terms

day

Patn
_

Thev'are* tavta?'tmmonltocks ^ese policies will collect a given
™e'anr
number of dollars on the death of
for
long-term
investment,
and the insured. However, with our
many

£

b|

blood

or

'

sj

people to be fed and clothed,

in-

type of

hfinnmincr
becoming

arp
are

interested

York

New

common

corporate

greatest

Curtain,

day

engulf
it

vote ot con-

a

the

to

■*

messurerie-

to

_JLthpr

future by some of

ments for certain savings banks in

/

v

™'^®srs'

ne

stocks have

of

business

back

go

me

Iron

the

Behind

Electric
$300,000,000;
a
billion
dollars for the Telephone Company in 1952 it they can get the

State, perinsurance companies

let

conditions.

world

enacted

Declining Profit Margins
A Threat to Free Economy!

*

In

Thursday, January 24, 1952

.

.

Conditions

World

Continued from page 11

.

industries

was

minus

a list of 45
surveyed by the

In

N^°"aLCi!y, Bank °*.^ew York
-an imPartial ^urce if there ever
wa,s one °l1 y
industries scored
j;]ar^r "J11™? figure than steel
dl<?/ Mr* Austln continued,
"Since 1945 our industrial exPansion has been carried on at a

R.

Drnst

&

.

A.

Cunningham

Broadway,

120

Co.,

New York City, members of the
We
are
vitally concerned with rectify the conditions causing the Chicago, 111.; John P. Frost, Frost;New York Stock Exchange, anwhat happens in remote areas of shortages, and that the need is Read &
Simons, Inc., Charleston' Phenomenal rate. More than $100 nounce that Richard A. Cunningthis
earth.
World
stability
is absolutely essential.
s. C.; Charles M. Baxter, Jr., Baxbillion in all have been spent on ham has become associated with
very much our business.
Many people have asked me ter, Williams & Co., Cleveland, newI
and improved plant and them as manager of their municOne

of

the

terials

v

of

coping
for

ma-

also

to

the

of; the

need

stockpiling, -which

is

happens
one

of

means

with this absolute

be

in

some

of

areas

Munitions

job, believe

Wtwn

was

with

Jinds when materials
but takes

seat

in

now

the

procurement

.

stockpile,

stockpile, not

likened

if

It

one.

to

--,l

~

can

Spite of the fact that small- busisuch;/;(under* 500

^amit it a national remembered
should be
that
is
military

r

cannot ;build

In thinking about this vital pro-

a

I am sure, than was accomplished during the last war. ^ In

»loVee;s)

m

best

be

been getting

the

procurement

dollar-

in

the

tracts.

One convincing

measure of the

impact of the armament
on

program

small business is the record

of

in metal working firms since

will

tremendous

develop

through-

out the year for the further with-

drawal and diversion of materials

stockpile.

sures must be

These

,

alternative has been
offers

pres-

fought off unless it

is conclusively shown that

none

substantial share of

Korea.

Unquestionably

the

dollar ^- thew' have
a

Financial

relief,

every

pxnlnr<vl

^

and

that




nnH

all

,

of< securities.

Chronicle)

The

prevailing

|

these

in

expanded

employment

by

firms employing over 500

23%;

mg^mnrnvmunvpri,,.,—

ho

0

^

•

persons

$

ve ^xPaDded their employment
by only 10%.

'

-

'fv

-

f)t J. Moore & Sons

,ames
.

Company, Inc.,?'^ith. whidtu^ firm v; ^American industry
Mr- Hamsher, was also associated., gaged:.; in a- further ;POstwar,/,>
^™TC>'Z
'
:-'■ ■■<
^
j! toipansion surge that dwarfs anyPORTLANDD,JMaine .Art;VUr.?'
With Reinholdt & Gardner thing that has gone before it. Our.;Newcomb has been added to the
.social to
cH»o»,a.r).
expenditures for new plant and staff of H M. Payson & Co 93
.

,

,

ST.

LOUIS,

George,

Jr.

Mo.
and

-

Walter

N.

Lawrence

D.

Sheppard have become associated
Locust

Street,

York

members

and

Midwest

of

e(>ulPment have been running at Exchange Street, members of the
all-time record high, totaling Boston Stock Exchange,

an

more

than

More

U

c.

year.

that,

we

nf
?ro^
gr^?ter Percentage of our gross

r,

LphpJ^ nprrPnt^P

respite
thus

mands

the

extraordinary

our

de-

e exxraoramary S.
being made on U.ae

industry . . . despite the fact that
this expansion is being largely fi.

course

188-

9

"Desoite

a

nanced

/.

»

r«

i

r*

n

With F. L. Putnam Co.
(Special to The Financial Chronicle) ;.

PORTLAND, Maine

—

Goodwin

^
with F. L. Putnam & Co.,
with F. L. Pu

97 Ex-

change streetR

iyArmani

U Armana

fn
^

Bert D'Armand is engaging in

of retained earnings a securities business from offices
following the perilous at 111 Broadway, New York City
cutting the profits of in- under the firm name of B. D'ArWe are now taxing up to >mand Co. .

out

we are

dustry.

„*.

mn

MdSSfa

Q8 ®

^ies business from offices at
Avenue.

last

than

the

Stock

FLUSHING, N. Y. — Harry
Simmons is engaging in a securiSixty-ninth

billion

nrobablv arebLoresent outtine

rlarry oimmons Up€ns

35A

$23

significant

400

Exchanges. Both were formerly
ing firms employing less than 100 with Walter N. George & Co. and
persons have expanded their em- Hamilton
Management Corporaploy ment by 26%; firms employ- tion in Springfield, Mo.
1
have

profit & Company.howX"

-Wtignerr

Since Korea, small metal work-

persons

of

years,

ORLEANS, La. — James ^ver, has been too low to attract WUL
Barrett, ;X Ross
B.
Hamsher, the risk capital that business has "

New

ing from 100 to 500

rate

NEW
T

a najional bloodbank what has happened to employ- with Reinholdt & Gardner,
y
Se m dlre
ment

emergency.

from

em-

the-maior

form of both prime and sub-con-

'

pressures

•

1 * ■

1

(Special to The

have;;:done^ ^far

iiess.'. as

already been made.

is

'

when

stockpile objectives! valued
$9
billion,- only
$3
billion

With Renyx, Field

very

more,

of

Of

worth

a

Indeed

the materials pinch is om

at

continuing to do

business.-^ They

pro-

lack

military have already done,

are

great deal of work to help small

a

were plenti-

back

a

The

me.

plagued

is

It

The

and

responsibility

Board.

mean

,

measure

equipment since V-J Day. Nor- ipal bond department. Mr. Cunmally, industry would have fi- ningham was formerly; manager ;
nanced such expansion largely by 0f the
municipal, bond department;
raising new equity, capital by sale 0f the New York office ot Laird

of

Volume 175

Number 5084




.

.

.

The Commercial and Financial Chronicle
vr

(381)

■

Mack //. Fairburn, pipe fitter photographed by Fritz Hcnlc at
Charles refinery, says a mechanic's best friend is his

Lake

The Care and

Feeding of Monkey Wrenches

The monkey monkey wrenchcreature with a long tail and adjustable jaws.
wrench is a because early-day nut-tightener with vivid
It is called

a

a

few

a

an

imagination thought it looked like

a

monkey. Given the

proper

treatment, fed

drops of oil at reasonable intervals, it performs capably such services as

building and repairing machinery by adjusting essential nuts and bolts.
Persons with

destructive tendencies have been known to throw

monkey

Customers

wrenches in the
more

social, industrial and economic works. This is not

people throughout the world

and used them for the purposes

wrenches and

a

lot of

for which they

people would be

a

recom¬

were

kind to monkey wrenches,

were

intended,

a

lot of monkey

bought $800,000,000 worth of

Cities Service
year—more

Cities Service

before in history.
acceptance,*

we

employees and dealers

use

monkey wrenches constructively.
.

♦1946..
1950........
1951..:

g) SERVICE

Quality Petroleum Products

ever

think, is due to the fact that the 40,000

lot happier.

CITIES

products and services last

than

This growing customer

their

mended. If

the Cities Service
monkey wrench.

$333,175,417
$693,384,685
(est.) $800,000,000

17

18

The Commercial and Financial Chronicle

v

(382)

Increase Voters' "Take Home Pay":

The British Gold Drain

Columnist advocates replacing

By PAUL EINZIG

Dr. Einzig, in

tic cuts in unessential

pointing out serious danger

zen's

of exhaustion of

before end of year^ reviews measures
adopted and likely to be adopted to reduce British adverse
trade balance and restore world confidence in sterling. Says
administrative measures will not be sufficient, and predicts
money

conditions

as

CLEVELAND,
parties
face

indispensable remedy.

a

in

in

warned

7

the

his

boom

year

of offering

obso¬

ideology

in

warn¬

by

House

Ru¬

work

for

Once

military

restored

Hearst

ament

in

ment

newspapers

should

be to

speculative pressure on sterling causing an;
exaggerated drain on the/gold reserve was

and the Inter¬

from

national News

the

by the heavy gold drain in October. His argu¬
was
that, as on previous occasions, a

reaction. In reality,
against sterling abated

liable to be followed by a

speculation

although

after

somewhat
there

is

covering

address
the

1

short positions in

sterling.

were

No

adopted

Dr.

by the government in November able to make
themselves /felt
to
any
noteworthy extent

Paul

basis

of

the

during

outflow

the

The
of

last

quarter,

of
to

will be

measures

in line with
home

at

circuses,'

and

which

fresh

sensible

a

be

offer

to

voters

drastic

in

reductions

Federal

benefits
lated

in

time

into

would

tax

savings,

income

base
all

Administrative

in themselves

are

savings

or

Industries have

to

Indus¬

trialists appear to have realized, however, that the alternative of

unpleasant

reserve,

The

changes

would

which would result in

popular

misconception

be
a

an

exhaustion

of

crisis of first-rate

that

the

economic problems of Britain are two

internal

the

gold

and

external

virtually watertight

goods in anticipation of a fall in sterling; it tends to delay payment
for British ^goods purchased; and it induces foreign banks and
others to reduce to

a

minimum their sterling balances and to

Deal

economic

some

redistributing wealth
but

that

argued

it

at the end of the road on

monetary inflation
lifting power, but

stages
economic

declared that the country

where

juncture
might

a

flation

On

effect.
that the

in

scheme of

in¬

the

reverse

he

charged

Deal had

New

was now

further

have

taxation,

end

dead

its

reached

a

vote-catching

financing governmental

benefits through

soaking the rich.

revealed that three-fourths of

{he remaining untaxable personal
income was in the lower brackets,
that

and
costs

henceforth

would

merically

fall

government

heavily on nu¬
and
politically

large

articulate groups

sterling acceptance ■ credit facilities to the utmost limit. In
as Mr. Butler succeeds, through a
display of determination
to adopt hard money measures, in strengthening confidence in
sterling, this speculative pressure would become reversed. Mr.
Gaitskell was right in assuming that in October there was a heavy
short position in sterling. In order to induce those concerned to
far

''

,




it is essential for the British
*-r

are

things

many

the

have

done

help

other

selves
must

still

and

to

do

must

countries free them¬
exchange control. It

from

bring

unremitting

pressure

their governments. It must

on

much

more

them

to

than

so

ing

them

the

remove

dollars
for giv¬

excuse

This

away.

do

enable

to

American

earn

and

it has

mean

may

the encouragement of imports
the

United

where

we

cessive

States

longer have

no

into
point

the

to

ex¬

an

surplus.

export

attract

investment

it

from

funds

by internal reforms of their own.
The ways and means to achieve a

general convertibility of curren¬
cies; are manifold and extremely

difficult, and I have not the time
knowledge to list them all here.

or

this

But

is

much

that

certain:

stable money system

sound and

a

should be the foremost aim of the
United

in

States

all

economic

its

dealings. If this goal is neglected,

recently

as

has

ne¬

will

else

is

There

achieved.
for

Washington

nothing

it,

glected

be,

substitute

no

sound currency. It is funda¬

a

mental

it

and

other

brings

eco¬

nomic benefits in its train. Let us
call

the United States Gov¬

upon

make

to

ernment

sound

a

money

system the first order of business
in the economic sphere.

including work-

ingmen,

farmers, small business
professional
persons,
civil
servants, and others.

State Department

Overhaul the

and

impor¬

Foreign Policy
Sound and Stable Currency

a

attach

soon

to

World

a

would restore

we

A

in

third

The

thing

ment

must

is

do

Govern¬

our

Department.

overhaul the

to

all

By

Communists

means,

other

or

is

there

But

another

sibilities. Under

all, this effort

But

gag.

in

what

con¬

the peoples of the world

to

vey

anything else to

Americans

we

are

driving at

—which is neither domination

privilege

clarify
which
more

And

our

it

would

most

help to

minds,

own

nor

but liberty

suicide,

nor

law.

under

Americans

too

agree

—

is

It

now

than ordinarily confused.

.

gold

Government

way

for the world-wide activity
American peo¬

of

is

to

clear

the

people—of the

ple and of all people in all their
lawful pursuits.
*
-

The

prime

Business.
what
are

we

We

the

only

people

conception

ation

of

mean

we

wealth

We

who

Business in the 20th Century.

By Business

is

know

by Business.

rational

any

this

of

Americans

mean

almost

have

example

the

the

on

of

Oliver

as

definition.

by

governments

it

how to

it

in

itself

does

not

ment

build wealth, and

and

...

States Govern¬
them regularly and

cursed

idea

of convertible

our

currencies

as

basis for healthy world

the. only

after the war
Government continued this lip
During and

trade,

service.

it

wrote

We

into

the

Lend-Lease

agreements, into the
Woods agreements, into

Bretton

it

was

loan

into
On paper,
the nearest thing to a con¬
policy

achieved

if

ation

have

could

milking

by

States

United

the
it

ican taxpayer.
have

agreement,

been

the Amer¬

Mr. Truman would

achieved it.

despite all his lavish "don¬

diplomacy,"

the

world

is

if

farther from having a stable cur¬

did, the American people will

since the
collapse of money began, twenty
years ago. Nearly every nation in
the-"West'now- imposes omits cit¬

not

tolerate

vorting
role

of

their

about

the

Uncle

Sam

world

ca¬

in;.vthe

rency

than

global: Businessman 'f. or/ izens?^ th&t

planetary planned economist.:?*'

any

-

time

most

economic controls,

sinister

of

all

the direct ra¬

purpose

-V

.

a

and;,
■

•7

example of
and drive was given by

purpose

one

John Foster Dulles. In September
he

1950

to

the President

persuaded

him

give

job

a

making

of

a

Treaty with Japan. Exactly

Peace

later, over every con¬
ceivable
obstacle, the job was
done. It is the only success Amer¬
ican Diplomacy has had in three
one

year

At

on

,

time that Mr.'
his mission, our

fixed.

I

on

notice

Iran

had to

put

was

in

the situation

that

of

know

my. own

in

detail,

from

busi¬

nessmen

and

others

who

lived

with

problem,

knowledge
the

that it

was

a

quite manageable one—infinitely
simpler than Japan. The State De¬
partment

made

footling
Why?

few

a

gestures and got nowhere.
Because it
to

utterly lacked the will

perform.
In

Soviet

• '.

countries

57

world,

of

there

is

the
a

'non-

job for

American

Ambassador to do.

The job takes

brains and guts and

the

a

60-hour

Of

week.

our

57

Am¬

would get
passing marks on this standard?
There are good people in the State
Department at home and abroad.

bassadors,

I

have

how

seen

many

fine

younger

men,

yet leading lives
of quiet desperation. The leader¬
ship they get is bad, it is frustrat¬
ing, incoherent leadership. ;
;7
eager

to serve,

Here

then

are

-

.

the very same

Government

be

"7

;

Dulles set out

agreements.

And

dynamic

contrast,

By

lacks

Department

of

drive.

Schacht

Dr.

much verbal support to the

But

even

State

.

,

gave

ECA

know

partment is striped-panted and
cookie-pushing. In other words,

years.

'

.

United

the

cies,

British

ican-Government must make clear

•

completing the destruction
system of stable curren¬

the

but

was

this

of

the

by people. Accordingly the Amer¬

that

•

V -remarked,

currency

a

lady—part of the

a

Hitler

While

sistent

created

Lyttleton

like virtue in

had.

not

*

freely

convertibility in

cre¬

know, is

British

everybody in the
convert his
own; money
into the money of
any other country. In those days,

distribution.

we

since

years

strong

a

could

scale of this age and its universal

Wealth,

and

-

colossal

phere, the morale of the State De¬

cur¬

nearly

world

were

ican

twenty

-

of the State Department
cookie-pushers.
Yet the

phrase has truth in it. The atmos¬

the

stable

and

to

gold ceased to be the recognized
international currency. By virtue

are

Secondly, the task of the Amer-

not

sense

pound,

than

sound

directed

/-

rency.

for law should, >'

propaganda

is

Government
a

Constitution,

our

cartoon

in

are

in^ our American tra¬

dition, the Government is charged
with a few very specific respon¬
our

anemic, devitalized—
language, is it a
striped-pants and cookie-pushing
outfit?
Individually, most of the
ineffectual,

or

people

Required

However,

provide
at

use

their

cover their short positions, however,
-their unpopularity in many quarters.

a

com¬

resulting from an exhaustion of the gold reserve produces the
same effect, because it tends to discourage the purchase of British

new

level,

would

more

magnitude.

partments, isolated from each other by a system of controls, has
given way to the widespread realization that they are entirely
interlocked. Exchange restrictions may effectively prevent specu¬
lation against sterling in the prewar sense of the term. There can
now be no gold drain through a bear raid on the foreign exchange
market. All the same, speculative anticipation of a fall in sterling

so

New

gotten

the in¬

restore respect

as

This in spite of the fact

decline in consumers' demand for their manufactures.

There

United States Government should

Another
thing it may mean is the revival
of a
healthy capital market in
pro¬ Wall
Street, a market so healthy
The that foreign countries will seek to

He further stated that in its

that.

this propagandar-conscious age, an of
American appeal to law would do^

out emphatically

in favor of hard money.
that industrial firms are likely to pay a
heavy price for it, in the form of higher interest charges, greater
difficulty in securing overdrafts and in floating capital issues,

efforts

at

Soon,

be undertaken earnestly—and not

hard money policy has come to be recognized

come

constructive

If undertaken

which, until recently, swore by the soft money
policy pursued since 1931 and more especially since 1939. Repre¬
sentative industrial quarters such as the Federation of British

,

the

income,

New

a

treaties."

Mr. Butler may administer a further dose of the same remedy.
a

first

world.

eccentrics.

meaning to that now shat¬
tered
phrase:
"the
sanctity
of

in many quarters

\

of

some

in* the exportable surplus at the same time as

The need for

these

the

fields.

Court, and

not considered suf¬

satis¬
fying the growing requirments of rearmament.Already under
the Socialist Government, Mr. Gaitskell envisaged the possibility
of the use of the weapons of monetary policy. In this respect, as
in various other respects, the difference between the Conservative
and Socialist attitude is one of degree rather than one of kind.
The slight tightening of money market resources during December,
1951 provided a foretaste of things to come. Judging by the bank
figures, it was unable even to prevent a further expansion of
increase

for

other

tance

them in principle.

measures

Tighter money con¬
ditions are considered by the government as indispensable for
curtailing the excessive domestic demand and securing thereby

and

racketeers."

from 'page 10

ternational

ficient, however, to achieve the desired end.

credit.

which

stretch

Essentials of

consumer

tive Party is opposed to

Gov¬

question: Is the State Department

largely with

materials, and in reducing their allocation for the production
goods for the domestic markets. His measures will
necessitate the reintroduction of controls, much as the Conserva¬

.

objective

jjjro-

measures

being

our

completely failed in
economic
duty to the

eliminate

Continued

proven

While

money,

State

such

*

trans¬

be

citizens.

of

an

these

and

could

automatically

spendable

the aid of imported raw materials, such as
metals. He is expected to be ruthless in cutting down any capital
investment schemes that] would involve the large-scale use of

-

and

was now

He

unessential

expenditures,

gjjild

administrative

Butler's

Mr.

t

an

"This could be accomplished by

though primarily intended for strengthening confidence
in sterling, would also tend to improve the balance of payments,
in that they would reduce the demand for goods, whether homeproduced or imported.

•

in¬

in 'take home pay.'

measures,

will include restrictions on the domestic use of goodfe

have

appeal

would

and

in defense sof the

and

alternative to

as an

crease

reduction

directed partly towards the

trends

Thus,

taxes,

ing to increase exports will strengthen confidence in sterling at
the same time as reducing the import surplus.
Any hard-money

duced

by

led to inflation and back-breaking

partly towards the restoration
confidence in sterling, j The same measures will be calculated
serve both purposes.
Any cuts in imports and measures tend¬

reserve

win

to

at

'bread

it is

unless effective steps are taken to check the

the adverse trade balance

trying

early

abroad.

West, the

of

had

had

significant

drain,
the gold reserve would become exhausted before the end of this
year.
These fears are likely to weaken resistance to the drastic
measures Mr. Butler is expected to announce shortly. *
feared that,

-v-v.//::///>;/;
of

'me

Deal

operating principles

satisfactory. As a
result, the gold drain continued during November and December,
even if its extent was not quite so large as it was during October.

rearm¬

regain the initiative

lift through

Security in a Changing
declared, "would be well
advised
to
revise governmental

exports to the Dollar Area were also far from

has

had run its course.
speaker pointed out that the New

World"

Imports declined during December,
but not sufficiently to check the outflow of gold, especially as

the

role

"Financial

//

v

before the turn of the year.

On

Merryle S. Rukeyser

too' the candidates,"
Rukeyser, who is author of

Mr.

Einzig

through

the Communist

toric

City

"Instead

cur¬

gram

Cleve-

saying

the emergency measures

an

club.

from that direction.

our

protests

have

Rukeyser presented statis¬
tical data to indicate that the his¬

under

d

a n

the

iron

balance

Mr.

auspices
the

of

reason

of

came

Nor

Service, in

government

of

sign of any turn in the trend.
to suppose that during
and
December there was much

no

November

relief

change

no

was

There

the

boom

formula

a

the

behind

leaders

tain.
been

to

oui

peace

ster

eco¬
com¬

mentator

to

be

with honor in a world
terrified by the initiative of gang¬

Merryle

nomic

hon¬

biggest

The

government.
for

Stanley
keyser,

bag of political tricks

demand is for common

would

feeble

ernment has

esty and common sense in the
administration of the affairs of

period.

with

lavish

depression years belongs in
the limbo of forgotten things. The

new

The

ineffective.

utterly

of the

was given
here Jan.
19

successor,

old

of.

Government

our

its

"The

major

Presidential

ing

of Commons on
Mr. Butler, not
allow himself to be influenced excessively
speech

a

Nov.

O.—Both

this

depression-bred

This

by ex-Chancellor Gaitskell, who

even

in

the hazard

lete,

LONDON, Eng.—The announcement of the British gold reserve
figure for the end of 1951 disposed of the widely entertained hopes
that the change of government in October might check or even
reverse the outward flow
of gold.
Such anticipations were ex¬
pressed

of

dead-end in

has reached

Thursday, January 24, 1952

-

dreamed

vote-catching through soaking-the-rich.

Britain's gold reserve

tighter

"bread and circuses" with dras¬

New Deal

.

tioning of foreign exchange. The
British
have
carried
exchange
control
to
lengths Hitler never

Rukeyser

expenditures, materially cutting the citi¬

Asserts

bill.

tax

.

-

three

primary

things for the Government to do.

Number 5084

Volume 175

.

.

.

The Commercial and Financial Chronicle

international
world-wide
revival of respect for Law itself.
Second, clear the way for the

wrote that

world-wide

what it is, than for re¬
sults to come. Sole among nation¬

First, get going on
beginning with

law

in

men

and in
activities

lawful

other

whatever-

Third,

wish to pursue.

may

Department

State

the

transform

into

of. free

activity

building of wealth

the

they

a

dynamic organization.,

a

they effect these major

as

their Government's
policy and action? My time is
nearly up and even if I had all
in

changes

less

catalogue

whole

the

world through the morass of...

.

las MacArthur.
After

or

faults

alities, these States have assumed
the task to put

sion.

tion

Our countrv

the

the

republican principle

.

are

leadership

finest

Douglas

MacArthur

tells

us

this about ourselves:
"This

democratic
.

which

able to

less

in forms of lasting
on areas of am¬

ages,

weaknesses

our

Its

the moral political speculaof

and

with .distress

indeed many and grave, neverthe¬

practicality and

mos,-

noting

Partner in Roberts Go.

was never more

."

ours

powerful—never

prepared to extend

a

in

history

exacting tests of

tne

still

hours

ahead.

lies

are

in

or

peace

yet

was

more

dynamic and

on

Whitman's

America

prophetic

and

on

abiding faith in the

or

Robert

J.

Fenton

will

acquire

war.

Our
falls

hope

membership
Stock

come."

to

My thesis today stands

great nation of

never more

meet

19

Robert J. Fenton to Be

.

,

done,

-

courageous leadership to guide the

Sreat American, General Doug- timidity, complexity and indeci-

a

World, I consider far
important for what it has

in

MacArthur's

will

&

in

the

Exchange,

become

'Netof York

and

Feb.

on

1

partner in Roberts

a

Co., 488 Madison Avenue, New

York

City,

members

of

the

Exchange.

same.

r'r

could not
begin to list them all. For wh^t
the people are to do is nothing
than

In the last few months, there
has once again walked among us

only just be-

were

"Our New

day in which to talk, I

less

we

Here is how he said it:

plitude rivaling the physical cos¬

What would the American peo¬

ple do,

ginning.

(383)

SMOKING PLEASURE

1

AND PRESENT

...

..

i

...

.

of

by which the Amer¬

all the ways
ican

people enjoy life, realize lib¬

erty

and
pursue
happiness.
I
first of all, very simple

mean,

things. Let the people travel. Let
them travel not only to Europe
everywhere, for fun, for cul¬

but

climb

and for learning. Let them
mountains, explore nature

and

make

ture,

pilgrimages to holy
substitute for

shrines. There is no

personal observation and experi¬
If Americans are going to

ence.

operate in the world, to do busi¬
ness
in the world, to understand
the world—indeed if they are go¬

world as

ing to live in a livable
well

in

as

is

Travel

.

home-town, then they

a

in the world.

get about

must

of

There

to all else.

background

or

but,

trivial,

not

it is only a sort of prelude

course,

everywhere poverty and igno¬

is

rance—then, let those Americans
whose hearts are touched by the
others

of

needs

Samaritans

to

out

go

needy

a

as true
world. If

poverty is mainly to be overcome
by building wealth, let the Amer¬
icans
go
forth as the greatest
wealth-builders of all time. And

r*'
'

American profession and

let every

occupation get into the
a world of toler¬

group and

of creating

job

justice and liberty—lawyers,
doctors, scientists, ministers of the
gospel,
businessmen,
engineers,
oil men, cattlemen, farmers, labor

able

students,

educators,

leaders,

Leading Products of

just plain people.
•

The

energies

1

America's BrstTrucfeers'

and

P.

?

their

human
those

Order,

and

a

w,.

words.

of

"Give

that

us

that

In

•

is

delusion

a

in 1760,

curing just

taught

us

one

we are
our

without

establishing

was

Old Gold

and
J

career we

or,

as

and

Freedom

how to blend it best.

another banner year in

that from its very

has

country

public acceptance of

twice that

cigarette industry.

had

years

of experience stand behind all Lorillard

products--cigarettes, smoking and chewing
and

tobaccos,

cigars. This wealth of experience gives P. Lorillard

Company—and Lorillard stockholders—full confidence

never forget
beginnings, our
laid upon it a

us

great burden of hope.

in the future of their fine tobacco

products.

America is-

uniquely the land of great expec¬
tations.

Hopes not only for the El

Dorados

material

of

Hopes equally and
good

society,

for

success.

for the

more

freedom

under

law.
_

•

Back

test
era

of

in

civif

1868,
war,

of industrial

,

after

the

and in

first

expansion, Walt

Whitman, the singer of America,




AMERICA'S OLDEST TOBACCO MERCHANTS

bitter

our

between the

acts

Chewing Tobaccos
beech.nut
bagpipe

;v
;

cigarettes. For the past two years, the rate of

Nearly 200

our

But let

humility.

van bibber

have

thing: the world's best tobacco. Time

increase in Old Gold sales has been more than
-of the

the

Founding Fa¬
thers put it, Freedom under LavV.
It is a huge undertaking and it
may well invoke in us a.prayerful
Order,

muriel
headline

already nearly

world is to be the effective leader
in

Cigars

,/f

Havana

blossom

.Jr/.

v-\

1951

Free¬

in

mission

india house

America's oldest

long

leader

friends

to be called a "stogie."

famous

the

snare."

a

has

•

philosopher:
Freedom
which

American

The

century old! Founded

been

the

which

Order

dom is
1

Order

soon came

union

foot-

cigars have been known by this name.

4-Thmiaghaiit

science, the whole
organization of

exordium

without

"Conestoga,"

a

association with the

'Way back in the 1850's P. Lorillard was

societies, revolves around

two

They smoked

briggs

to

the

of

idea of smoking pleasure.

Ever since, some

Objective

political

own

word

*.

business

Conestoga wagons, which

freight westward in America's frontier days, had

long roll of tobacco which, through

Freedom and Order—the whole

of

of the famed

Smoking Tobaccos
hauled

heroic heights.

the

drivers

The

Pray God that we may have lead¬
ers who will meet that test before

Freedom

gold

murad

energies of the American

us

old

helmar

people
and
bring
their great
qualities to bear upon the world.
That test has not yet been met.

forces

//

embassy

top leaders in this epoch. That test
is
whether they can
call forth

catastrophe

Cigarettes

%
'<

their skills and
inventiveness and human enthu¬
siasm and
understanding. There
is one supreme test of a President
of the United States and of other
their energies and

dire

LORILLARD COMPANY

the American

of

people are not effectively geared
into this task today. We need all

the full

,r

c

r

.

ESTABLISHED 1760

-0

(384)

The Commercial and Financial Chronicle

Mutual Funds

Stock Smts

ROBERT

By

ing

MUTUAL FUND

NATIONAL

[

SECURITIES

!j RESEARCH
I

CORPORATION

$3,129,029,000

Dec.

over

120 BROADWAY, NEW YORK 5, N. Y.

In

direct

mail,

as

in other

1951, an increase of $599,000,000 businesses,
details are
31, 1950, according to figures compiled by the National As¬ bricks.
Handle
them
Dec. 31,

on

like
care¬

of Investment Companies.

sociation

first time are over one million,

Number of shareholders for the

fully,

them close respect

pay

812

11

x

sheet,

quality
to the

1,110,432, compared with 939,000 a year earlier. Sales of and you can build a mighty
new
shares during 1.951 amounted to $675,000,000, compared with
strong wall. Ignore them and
$519,000,000 in 1950, while net sales, after redemptions, were $353,you will be stumbling which¬
000,000 and $238,000,000 in the respective years. Dividend distribu¬
ever
way you turn.
tions to shareholders in 1951 exceeded $237,000,000, compared with
To the layman, the coupon
$151,000,000 in 1950.
totalling

for

These

first

your sales let¬
letters, usually
to

ones

your

pros¬

of necessity be
somewhat long and the 8V2XII
size helps give the illusion to
the prospect that the letter
isn't "too long to read." It's
all really an illusion of mar¬
gins and spacing.
The second size letter sheet,
about 5 v2x8 Vi, seems to make
good psychological sense. It's
more
informal and friendly
pects,

shareholders,

totaled

&

of

the

By BENTON G. CARR

total assets, num¬

distributions to shareholders, gross sales, net
sales and repurchases topped previous high water marks.
Total assets, which have increased in every year since 1941,
ber

space

ters.

Year in 1951

Mutual funds in 1951 had their biggest year as

Prospectus upon request from
your investment dealer, or from

standard

good

bond,
is
preferred
somewhat
smaller "monarch" size, be¬
cause it gives
you good work¬

RETAILER
Mutual Funds Have Biggest

Thursday, January 24, 1952

.

in

RICH

R.

.

The

The

n&tioMl

.

may

even good
news for the mutual fund sponsors.
Re¬ at the bottom of an advertise¬
than the standard sheet and
although they increased from $281,000,000 in 1950 to ment
may seem to be a trivial can be used for confirmations
$322,000,000 in 1951, showed nothing of the hair-raising increase that
consideration.
To the direct
occurred in 1949-1950, when they jumped 162% from $107,000,000 to
and for notes thanking pros¬

is

There

,

purchases,

^WELLINGTON

$280,000,000.
Perhaps more important, repurchases as a percent of total assets

1951 for the "all funds"

quarter of

sharply in the fourth

declined

well as the common stock, balanced fund and bond and
specialty fund groups.
v
For all funds, repurchases as a percent of total assets declined
from 2.75% in the third quarter of 1951 to a fourth quarter figure of
1.99%. It was 3.92% in the first quarter, 1951.
Comparable common stock fund figu.es declined from 2.84% in
the third quarter to 1.92% in the fourth.
Balanced fund repurchases, consistently the lowest of all classes,
as

group

.

JliL

^

V

-V

"prospectus from
■7".v

or

PHILADELPHIA 2, PA

Mutual Funds* Repurchases as Percent

of Assets

1,

January

December 31, 1951

1950 to

Assets)

(Total Repurchases as Percent of Total
*

2nd

lit

No. of

4th

3rd

2nd

1st

4th

3rd

Funds

Qtr.

Qtr.

Qtr.

Qtr.

Qtr.

Qtr.

Qtr.

Qtr.

in Group

1951

1951

1951

1951

1950

1950

1950

1950

1.99ft

2.75ft

2.62ft

3.92ft

3.27ft

2.70ft

3.71ft

2.64ft

A

'/Af- it"'*
'<y'" i
'"/,y v"
"y

*'<
'

Il,

"

i.

'/>y

■

''//ih

'/

' ?'''

103

All Funds

Percent of Group Assets)

(Fund Group Repurchases as
45

^4 Mutual Investment Fund

Fund—

32

For

free prospectus

a

your

&

26

write

investment dealer

2.32%

1.76

1.59

1.93

1.82

1.44

3.99

3.34

2.16ft

5.56

9.20

7.09

5.30

3.54ft
2.26
5.76

the

news
are

is

still

fund

card.

the lowest for the last two years.

by the bond and specialty
This group, with total assets now of $596,027,000 was

group.

of 1950 and the first two

water" for the last two quarters

"under

Established 1894>

quarters of 1951, when repurchases were as much as 141% of gross
sales. In the third quarter of 1951, repurchases were down to 86%

New York

and in the fourth

Although net
positive for bond and specialty funds
total net assets declined from $601,937 on Sept. 30 to $596,027 on
Dec. 31 chiefly because of the performance record factor.
of

sales

quarter dropped to 67%.

sales in the last quarter were

Mutual Funds* Repurchases

t

as

Percent of Gross Sales

by quarters
January

1,

1950

December 31, 1951

to

1st

3rd

4 th

2nd

1st

4th

3rd

2nd

of

Qtr.

Qtr.

Qtr.

Qtr.

Qtr.

Qtr.

Qtr.

Qtr.

Funds

1951

1951

1951

1951

1950

1950

1950

1950

Number

Fund Group:

K

All

.eystone

Funds—

_

103

32 ft

45

'50ft

53

ft

61ft

:

53 ft

64 ft

40 ft

50

59 ft

47

75

39

23

32

22

112

91

68

Custodian Funds

52

32

;y

49

48 '

29
19

28

26

26

27

26

67

86

108

121

141

.

funds,

prospect And there

do what you

to

1.76
4.33

Most remarkable is the recovery made

CALVIN BULLOCK

made it easier for the

do

The figures drop in all cases significantly

good.

mutual

on

ness.
At least, we thought so
will increase your replies until we examined a few let¬
substantially if you enclose a ters sent to us
by mutual fund
business reply ^self-addressed
dealers for our suggestions.
envelope. If, in addition, the Some of the letters could
reply envelope is postpaid, hardly be read, even in a
your
replies will be even strong light, because the
type¬
greater. All because you have writer ribbons were so worn.

2.31ft

Examining the repurchases figures as a percent of gross sales,

or

and

One Wall Street

2.77ft

1.24

Specialty

Balanced
Bond

2.03ft

2.84ft

1.92ft

Stock-

Common

The

you

by quarters

'

and the like.

1951. literature

3.99% in the third quarter of 1951 and 9.2% in the first quarter,

„

And similarly with ence to state that the use of
reply enve¬ this informal note
paper will
lopes, "bill me later" offers help a salesman, after he has
replies.

enclosed business

talked to or met the prospect,
primary consideration to establish a better
rapport,
—the principle rule—in work¬
simply because the size of the
ing over these details in di¬ letter sheet is more
friendly.
dropped to 1.24% of total assets in the fourth quarter from 1.76% rect mail is "Make it easy."
Of course, it might seem
in the third. The current repurchases figure is regarded near the If
you are asking a prospect
unnecessary to stress the de¬
absolute minimum for the balanced fund class.
to fill in a request card for
tails of legibility and neat¬
Bond and specialty fund repurchases were 3.34%, down from

investment dealer

your

mail expert it means a differ¬
pects for an appointment.
of 20% or more in his
It is not contrary to experi¬

ence

—

send

.

on

Of course,

if you enclose a
reply envelope with a threecent stamp, the cost may be
ruinous
in
large mailings,
since only a fraction of your
prospects will reply—and the
other three-cent stamps will
be lost. This is why, of course,
large mailers use a first class
permit, because then they
only pay postage for the en¬
velopes actually sent to them
by the replying prospect.
Since most of your mailing
activities are probably con¬
fined

the

to

individual

sales

letter, individually typed, we
can

confine

And,

a

our

discussions to

few weeks.

since

details

so

OPEN-END

Participation in

INVESTMENT

For the

INVESTMENT FUNDS

103

Total Net Assets
45

Bond

&

Common

Stock

Balanced

Funds

26

Bond

(Series S1-S2-S3-S4)

Please send

!

I

ten

me prospectuses

the

case,
was

$3,045,707

$2,530,563

Stock

Balanced

Funds

Bond

&

3rd

Qtr. 1951

12 Months 1951

$104,327

$83,754

third too small.
You

and

promised

27,928

column next week.

Funds—

103

3rd

Specialty Funds

Qtr. 1951

ical details
so

or

Stock

Balanced

Funds

26

Addrt

Common

32

Bond

103

This

State.

24,050

Total
table

ANY

/

what

of

FORECAST

must

3rd

Qtr. 1951

rely

upon

the upward trend

some

it is pointed out by Calvin
in

a

of

review

observations

on

scheduled

"This

difference

sent

1951

$39,957

pattern

of the

a

net

not

repre¬

does

addition

to

the

39,797

American
Business Shares
Prospectus

3,878

2,498

$83,632

upon request.

168,068

9,615

gross

since there is a
substantial sum already going into
Two sizes of letter sheet
the pipeline which is still in the
seem
necessary for a practical form of unfinished goods,. and-in
and a psychological reason. the construction facilities, expend-

$182,494

48,536

and

1952.

national product

12 Months 1951

$73,738

lies

of defense expenditures as a pow¬
erful sustaining force in our econ¬

$321,550

$353,060

prepared by "The Commercial & Financial Chronicle"
compiled by National Association of Investment Companies

was

"copy"

ahead in the coming twelve months

sheet, the letter head, margins

128,061

$83,668

$117,655

Specialty Funds

from figures

D 2a




&

Funds—

on

writing techniques.

55.368

19,894

4th Qtr. 1951

45

letter head and

$138,121

$62,150

Net Sales

—

forth, and start

and the like.

12 Months 1951

$43,797
15,821

>

11,667

Total

We'll fin¬

ish the discussions of mechan¬

$674,610

$30,589

been

for this

130,559

$167,300

have

we

more space

223.436

29,509

margin
about a

inch,

$320,615

55,618

left-hand

one-half

important, it's best we start defense
program looks for a rise
with the smallest of them and
in delivery of military items from
work up.
a
$2 billion monthly rate at the
First, the mechanical de¬ end of 1951 to a peak of $4 billion
in
1952,"
the
company
states,
tails— the size of the letter

describing

Organization and the sliares of your

....

581,187

4th Qtr. 1951

Common

32

Funds.

( City.

601,937

727,679

$194,509

Total

45

Name,.

'■

596,027

$1,221,697
-

60,203

Specialty Funds

26
,

Funds—

Repurchases

Company

SO Congress Street, Boston 9, Muss.

900,210

4th Qtr. 1951

45

103

$1,543,560

$3,129,629

Specialty Funds

32

&

Dec. 30, 1950

Sept. 30, 1951

$1,591,515
942,087

Funds

Sales

COMMON STOCKS

your

Funds

Dec. si, 1951

Funds—

Total

103

(Series KI-K2)

Stock

Balanced

26

PREFERRED STOCKS

Common

32

(Series B1-B2-B3-B4)

-

Open-End

(000's omitted)

BONDS

JI

STATISTICS

period ending December 31, 1951

investing their capital in

The Keystone

COMPANY

some

Street houses who certainly
ought to know better. In one

Bullock

are

.

.

the letters of "name" Wall

omy,

them for

typical
finger

—

"The

Certificates of

other

were

want him to faults
smeared ink,
back the request
prints and the like

•

1 r

t

Lord, Abbktt & Co.
New York

—

Chicago

—

Atlanta

—

Los Angeles

Volume 175

Number 5084

The Commercial and Financial Chronicle

...

(385)

tures
the

for

which

will taper off as
becomes more ad-

program

vanced.

I? v
wy •

"Nevertheless, the level of defense expenditures is of such a
magnitude that it is difficult to
foresee other than

high level of

a

Best

Barring the outbreak of a new
war
involving the United States,
continues,

company

"it

is

probable that corporate tax rates
at about their peak. Some

are now

further squeeze on profit margins

XT

V

101*

Advertising

The ^ annuaI
A

higher

costs

moving

Pr?*noFon and advertising camPai&2 J* *be year Fl
m7ei
21
fc s t a b 11 s h e d by
Standard & Poor s Corporation,

tration.

against

not

from

an-increased

work; others

war

repeat their

may

inventory losses

of last year and will benefit from
the carryover of the unused portion of their excess profit credit.

In general, one may look forward to the market continuing to
.v.

display the highly selective pattern that it has been showing during past months."
.

Other observations by

<

the. firm

the coming 1952 scene include:

on

board

of

Standard

&

Poor's

our

flation
the.

and

which
volves

investment

community,
For the past year Dreyfus has
been sponsoring a series of uncartoon

the

its

to

government.
It is high time that Governors
Mayors and other local official
joined with bankers, life insur

it

in¬

-

life

national

in¬

come

by

-<

promptly

Federal

in

dollars is

Government

is

creased/But

insurance

printing

ouflaged

expansion

as

increased, and credit.

incidentally

tivity,.will probably show a moderate gain during the year and,
despite higher .taxes,
consumer

rnents, which have been running
jn metropolitan New York news-

quacy of

their
insurance / to

the

^Posable

created

'

local ' govern¬

W. Rex Cromwell

Federal

indicator of overall

1952.

in

.

.

economic

ac-

income should increase
.Despite the rather de-

flationary behavior of commodity
prices last year, it would be un-

'of ^inflationary6

force

that lurk under the surface of

our

SUllace Of OUr

Prnnnmv

y'

'

Corporation increased to $12.36
share

a

$10.79

the

at

the

at

for

which

was

intended.

Bernbach

The

life

year-end

beginning

from

of

the

Mr.

of

Designed

York.

New

for

the

express

which

th0

me£m

C£m

failure

to

in

made

increase

in

value

for the year

22.9%

realized

December

asset

appreciation

amounted

1951.

Un-

equivalent to $5.14 a share on Dec. 31,
1951
as
compared with $3.85 a
year earlier.
Due primarily to appreciation
in

the

value

market

total

investments,

was

of

net

Continued

portfolio
assets

on

page

due to

was

the

the

of

some

there

individual

Co.'s

brokers

had

an

educa-

value,

the

Explaining

36 his

,

institutional

didn't

previous

cost

order

to

felt

bore

to

that

over

ten

the

Chemical Fund

best

in

results

A Prospectus
pany

the

its

shares,

including

price and terms of offer¬

ing,
F.

and

describing the Com¬

is

Available

upon

request.

In

;

McKenzie, editor of Ad¬
vertising In Action, stated: "When
T.

the

light touch of the Dreyfus &
Co. cartoon ads first appeared in

EBERSTADT & CO. INC.

the financial pages many

39

them

Broadway

New York City

thought
initial

.The

frivolous.

too

doubt and surprise in

reaction of

Wall Street community has given

the

tombstone tradi¬
characterized

tively

out

as

a

The

-

Parker

200.Berkeley

up

re¬

for

as

(Special

be obtained
dealers

or

Corporation

St.




Boston, Mass.

to

an

investors,

Michigan

BATTLE

CREEK,

'

,

is

a

few

part of this
increases in

course, a

due

to

staff

the

of

First

Michigan

Cor*

the

&

Co.

i.

the

to

rights

in

our

intended

of

the

State

provisions in State

local

to

DALLAS, Tex.—W. Rex Crom
well

Cromwell

has formed

&

Co

with offices in the Kirby Buildin
to engage in the securities busi
Mr.

ness.

Cromwell

Vice-President

of

was

formerl"

Dallas

Rupe

Son in charge of the syndicate an

wholesale

departments.

con¬

guaranteeing home rule

governments were not
or

a

fundamental in the

are

ervation

of

stitutions

individual

to

Kitchen, Fowler With

likely

smaller

freedom

Byrne Co.

endure

in the
divisions

than in central governments.

this

saw

is

government

to

governmental

Hitlerites

R. Emmet

pres¬

establish.

Representative
more

convenience;

The

moved

and

ment and transfer its functions to

to the decreased value of the dol¬

atively

in terms of wages

lar

The

and goods.

of local

managers

ment

govern¬

in this matter
flationary costs, in as bad
tion

are,

if not

a

worse

one

in¬
posi¬

a

than the

of private business, in¬
cluding the managers of a life in¬
surance

The managers

company.

businesses

some

their

can

increase

passing

to
their customers the higher prices
revenue

by

on

they pay for goods and
services, but that is difficult for
the managers of a life insurance
whose ordinary life pre¬
a long period;

company,

miums are fixed for

and it is likewise difficult for the
managers

whose

of

local

revenues

derived
often

from

governments

are

principally

taxation

limited

by

which

is

constitutional

provisions.

the

central
was

example,
is

the great city of

prevented

by con¬
stitutional provision from taxing
real estate, its principal source of
tax revenue, at a rate higher than
istrators
ment

all

the

-

'

'

of

Mr.

Govern¬

advantage

over

including local
Parkinson

Press Syndicate,
N. Y., Jan. 17, 1952.

Continental

waters,

Federal

some

rest of us,

♦Statement

by

the

of

have

released

Bright-

it

people to
have

We

govern¬

Once

compar¬

was

transfer

to

easy

of the

local

government.

done,

ernment from the

all

gov¬

representatives

dictator.
seeing the

a

been

same

thing in this country. The trend
has been and still is, to transfer
the
powers
of State and local

W.

ST.

governments to the Federal Gov¬
in

ernment

Washington.

I object

because centralized government

is

"expert" government, and "ex¬
pert" government is not repre¬
sentative government, and free¬
dom
ent

the individual

of

on

we

is

do

is depend¬

need

more

and

more

to

strengthen our local
governments so that there will be
less justification for the sugges¬
tion

further

of

resort

One of the

ington.

of appeal to

will

they will
provided
tax

to

Wash¬

surest causes

Washington in the fu¬
the

be

of local

culties

local

financial

governments, and

the squeeze
deficiency of

be due

to

the

by

diffi¬

revenues

and

the

ines¬

increasing costs to local
government of goods and services
capable

essential

Sharron

and

associated

become

Emmet Byrne &

change Building.
merly associated

Tegeler & Co.

Co., Railway Ex
Both were for
with Dempsey

*

to

the

performance

Farrell & Co. to

Admit S. N. Sears, Jr.
/ Seymour

will
&

a

as

alert

as

Exchange,

partner in Farrel

Co., 52 Wall Street, New York

City, members of the New York
Stpck Exchange, on Feb. 1.
same

date

become

a

On the

Mary E. Uniacke
limited

Mr. Sears has

portant that local government of¬
be

become

will

partner in the

of firm.

That is why I think it is so im¬
should

N. Sears, Jr., membe

of the New York Stock

their functions.

ficials

Mo. —William T
R. Fowle
with R

LOUIS,

Kitchen
have

Kitchen

T.

representative government.

What
to

ture

York

abolish

to

that

of

managers

r

Security Bank Arcade.
past he was with Braun,

Bosworth

the

preserve

and

provisions

Constitution

of

gov¬

quietly

poration,
In

Federal

administration

representative

or

The

ernment.

functions of
local government; but above all,
a large part of the increase is due
new

Mich. —Jo¬ 2% of assessed value. The admin¬

seph J. Aalbregtse has joined the

and

democratic

development of

For

The Financial Chronicle)

ganization

or¬

population, expansions of old and
:

old."

With First of

for Purchasing its Shares
investment

Of

years ago.

increase

New

SYSTEMATIC

may

and

public

new

INVESTMENT PROGRAM

Prospectus

shape

manual

instructive
new

sound

the securities busi¬

also

and

fi¬

Seen collec¬
Dreyfus ads

advertising.
the series of

lations job for

from

broken

one

stand

both

have

firms

from

nancial

ness

indication of how

which

away

tion

a

city is

average

which

are an

investment

Ann ounce s

problems

than twice its total of

of

flattery

"They

highly important part in the

W. Rex Cromwell

which it was the purpose of con¬

financial

approach.

1925

as

they

admiration and outright
by
imitation as other
firms have taken up the cartoon
to

way

FOUNDED

are,

position

same

private business.
They must stop the inflation or
they will be engulfed by it. Bad
as this would be for private busi¬

.

presentation,

the

making

John

therefore, in the

stitutions

our

more

he

feated."

adminis¬

government

matter of accident

penditures of the

If

doesn't, the most intelligent
up-to-date methods of market
analysis and research will be de-

that

days

resulting
from
inadequate
income
and
growing costs. The budget of ex¬

a

and

by the Fed¬

The

the

in

investing.

local

of

cities and other local gov¬
ernments are also confronted with

has to control his emotions to get

-

these

ago.

years

.

-

Government.

of

serious
thought.
Although our ads rare
light in approach they are serious
in content, one of our basic themes
being that the average investor
get

eral

ognized that the financial officials

we

people

is finding

its

and

It is not, however, so well rec¬

behind
campaign, Mr.
reason

"We

said,

have

dollar

our

costing about twice as much for
goods and services as such things

year.

of

for

defense preparation as well as all
other Government activities are

volume

everage

the money provided

of

sponsible

customers'

increase of 20% over the

Dreyfus

-

year.

are

Federal Reserve Board is now re¬

is
indicated by the fact that Dreyfus
&

towns

the
decreasing pur¬ ness management, it would be
value
of
the
dollar. much worse for the management
Our -Federal Government, which of local government.
through the Treasury and the
Local
government
plays
a

campaign

advertising

cities,

and villages, can issue any money
affect the purchasing value of

a college educa¬
his son, adequate when it

because

added personnel,

effectiveness

tional

counties,

1i
ifl

their sub¬

chasing

over

ume

nor

or

customers for the firm. In
many other sit¬
spite of this, Dreyfus & Co.'s uations where "expectations are
share of the total stock exchange subject to similar disappointment
volume

Company

the managers of

new

part of the firm's increased vol-

share

a

sidiaries,

Parkinson

trators

But

from

tion to shareholders of 90 cents

1.

through the sophomore

investing, the ads did not solicit

realized gain on investments, the

report.

T.

years ago, is now
enough to take the boy, at most,

in

for 1951 increased 32%
the previous year, while the
total trade on the Stock Exchange
itself
declined
15%.
Although

according to the 15th annual
Adding back the distribu-

year,

Neither the States

pol¬

taken

was

difference

and

success

it

icy taken by a
father to provide

pur-

P°se °f educatinS customers ^
pointing out the human frailties tion Tor

Forms Own

monetary authorities and
do the best they can with it in the
purchase of what they need, y

meet the need

by

between

NET ASSETS of National Investors

magazines, were
Dreyfus and his
advertising agency, Doyle, Dane,

and

papers

ban"

of

in¬

like private business and
housewife, have to take the
money which is provided by the

and the prob¬
able
inade¬

an

vertisements which single out the

Reserve

put the brakes on/th
of. paper money cam

the income tax take of the Federal

the position of

ad-

as its
inflate/ the

il¬

are

lustrated

Indeed,

the

and

ury

increase.

costs

monetary
policies
money
supply, the

pitfalls investors commonly place
jn their own path. The advertis-

as

t

ha

but also for State and loca

ness,

the

product,

it

one

we can only look
higher and highei
costs of living, not only for th
individual and for private busi

ments,

national

gross

place

why
in

dollar,

forward

money

.hardship,

of. the

-

of

infla¬

policyholders

the

$60
$180

.

mutual benefit of all the members

institutional

the

reason

billions

was
was

it

the

consequent

Corporation, who cited Dreyfus &
Co.,. for sponsoring anadvertising
campaign that operates for the

usual

about

is not

governments, in that it is the
supply and the' function of the Federal Govern¬ ance
executives and housewive
'depreciation of the ment to regulate money and fix
in a real fight on inflation and
purchasing value of the dollar. its value. The Federal Govern¬ demand that our
Federal fiscal an
ment can, by its own monetary
Usually the •
>
::
monetary authorities—the Treas
effect
of ,,in¬
policies, increase its revenues as
tion of

The gold trophy was presented
by Paul T. Babson, chairman of
the

lot

a

it

war

year ago

year:
it is enough to emphasize the fact
that at this rate of adulteration

Says this leads to appeals for Federal aid and central¬

hear

the
$10

grown

Concludes it is high
Mayors join financial institu¬
tions and others in fight to put brakes on printing
paper money.

We

a

This

explain

time that State Governors and

Waldorf-Astoria.

benefit

billions.

ization of power in National Government.

promotion and advertising for the
investment business held at the

will

billions and

Parkinson, in pointing out adverse effects of our currency
depreciation on finances of municipalities, calls attention to
heavily increased costs of state and local government adminis¬

prices seems indicated.

volume of

pie.j Before the

Dr.

,

industries will be quite diverse.
"Some industries, for example,

supply of this country
Presently, we have more than
$190 billions available to our peo

President, Equitable Life Assurance Society of U. S.

Ac'10nfAward fo* th®. besrtc sales

th

money

By THOMAS I. PARKINSON*

Advertising In

-unu-i miveinwug in

was presented Friday, Jan. 18, to
Jack Dreyfus, senior partner of
Thus the outlook for a further de- Dryfus & Co., New York Stock
cline in general corporate profits, Exchange firm.
The award was
but the effect among individual ma^e at a one-day conference on
by

controlled

avoiding further inflation of

Inflation and the Rising
Costs of States and Cities

p

i

a

WlIlS AWUF(l

industrial activity during 1952."

the

TTnnCn

iJAblittU^C llUUot

21

life

insurance officials ought to be in

tive

as

an

recently been ac¬

individual floor broken

Prior thereto he was a partner
ri

T

TTT

Xt

Cc\

in

The Commercial and Financial Chronicle

.

.

Thursday, January 24, 1952

.

(386)

Over the

boom.

Price of

Bank and Insurance Stocks
Bank Stocks

—

problem of Federal income taxes including the excess
profits tax levy has been the subject of considerable comment in
the annual reports of commercial banks issued during the past

contracts

cilities

There

are

number of factors to

a

profits tax seems to be particularly inequitable
in its application to banking operations.
Whereas, the postwaryears of 1946 to 1949 were a period of general prosperity for most
industry, the banks did not participate in the tremendous gains
shown by the manufacturing, mining, oil or other related com- •
panies.
'
Industrial companies in order to satisfy the war deferred de¬
mands of consumers expanded production and were able to in¬
excess

prices

crease

for
in

lower
To

subsequent years.
considerable extent

a

condition

this

ities

Government to

sumers

in

there was a certain amount

however,

such

few

a

made

permitted to

are

general prop¬

Thus,

becoming subject to

be $3,934,000.

a

before

an excess

being subject to

of return of 3.98%

when

would, of

jrom

All

Under

base

the

rate of 82%

Banks

"base,

to

up

are

spect

the few

of

receive

not

profits

to„ excess

earnings

and

over

of

which,

is

notable

most

invested

capital, including

profits

excess

an

allowed to

are

1952

or

also

are

to be visited

area

profits

excess

is

instance
6%

earn

the

their

on

allowed

were

similar

a

rate

to

seem

be

generally recognized

Is encouraging to

taking

first

York. vN.
Y.,
a. member
of the
Reserve System, at
the close of

New

Federal
business

that

see

tion necessary for a study of the
banks.

provisions

Of

of

serve

Bank

the

public

for

they

banks

by the banking

They

community.

market

increase

in

raise

the

by retained

or

risk

assets

that

It

tax

present

laws,

capital which will

It

is

hoped

authorities

earn

that

will

capital

earnings which
past

however, the
less

be

are

year

make

either

the

4%>

makes

it

incentive

to

two

&

ANALYSIS

17 N. Y.

a

more

providing

City

senl

on

request

Members

New

York

Stock

Members

New

York

Curb

Exchange
Exchange

BROADWAY, NEW YORK 5, N. Y.
Telephone: BArclay 7-3500

Teletype—NY

Gibbs,

Manager

1-1248-49

Trading

Dept.)

Specialists in Bank Stocks




•

Federal

district

Re¬

pursuant

to

Reserve Act.

the Federal

a

Beyond

defense

expect

pect,

I

tures

to

kept

be

lower

an

to

answer

has

announced

the

an

considerable

about

Most people
of

the

the

following firm

question.
who study the ques¬

which

John

S.

mem¬

Williams

to

G.

Preller

will

Blair

&

has

been

generally

taxes,

new

penditure
opening

like

up

candidates
stretch

a

of

go

the

a

that

really
as

of

ex¬

would

reason,

the

campaign.

the Administration

now
even

to

avoid

the

answer

in

high

defense expendi¬

are

going to be compared with
what has been expected?
Short

of

a

find

withdraw
will

retire

virtually

records

them,
level

to be sustained at a high

or

long

as

the altitude
expected
of

to attain
originally

expected

orginally

was

as

an¬

ticipated.

had

the

of

terms

to

come

to

draft

forced

consumers

which

companies

many

program

outlook

business

expect

keep

accomplish

still

be

both

purposes

high enough to keep
from partnership in
Simon, Strauss business booming. Also, the mili¬
& Himme Jan. 31.
tary might not object because such

49,348.435.62

_

deposits of individuals,

Time

are

enormous

under

the

United

States

;

—

of

States

and

441,683.33

po¬

175,000.00

subdivisions

of

Deposits

institu¬

banking

7,484,637,10

tions

Other deposits

officers'

(certified and

checks,

3,860,403.83

etc.)

TOTAL

DEPOSITS

for

account

tution

$63,071,581.11

and

or

insti¬

this

of

731,370.04

outstanding—-

liabilities

Other

by

executed

Acceptances

-.

285,257.64

.

for

a

rough

And those legions of
rushed to

who

buy

in

somewhat

increasing
that they can safely be
get

to

more

leisurely

about

even

if

made,

they

any

were

be washed out
or

a

adverse

two by a

over

little hastily

effects would
the next dec¬

continuing defense

(not

LIABILITIES

TOTAL

subordinated

including

$64,088,208.79

obligations shown below)

ACCOUNTS

CAPITAL

)

Capital

$2,500,000.00
1,200,000.00
36,612.38

t

Surplus

fund
profits

Undivided

(and retirement ac¬

for

count

preferred

ital)

cap¬

91,041.00

—

AC¬

CAPITAL

TOTAL

$3,827,653.38

COUNTS

TOTAL

economy

in

are

going

assurance

ade

1,761,421.18

—

of

litical

defense

the

an

incurring

and

and

partnerships,

Reserves

What this seems to me to mean
in

ages

idea

of individ¬

deposits

uals,

corpoiations

disagreement
be

no

new

would

Demand

that these expenditures cannot

ftaxes and also the charge their shopping.
Since the attack on South Ko¬
an alarming deficit.
rate of defense expendi¬ rea, many business decisions have
been made on the assumption that
ture—say a rate of $55 billion-

of

LIABILITIES

major move toward war I can

think
power

$67,915,862.17

ASSETS

CAPITAL

tThis

AND

LIABILITIES

ACCOUNTS

$67,915,862.17

—

capital

institution's

consists

of

$1,500,000 of capital debentures; and com¬
mon
stock
with
total
par
value of $1,000.000.00.

anticipation of long-lasting short¬

the

648,892.98
323.253.72

_________—_

:

tures

home
I

this

to

acceptances

on

assets

TOTAL

on

indefinitely
frightening awakening.

the Presidential

into

liability

outstanding
Other

is to be found in
to the second question

wears

be

rate

will want
of

to

330,593.53

$171,811.81

institution

Deposits

more

even

25,797,805.78

—

premises
owned,
furniture and

Government

cogent
for expecting business to
more
competitive as the

is .that

that happen—for two reasons.

see

;

Deposits

A lower

McGinnis & Co. Jan. 31.

Irving H. Silberfeld

the end

proclaimed as the prospect.
I personally do not expect
Without

Exchange

first

defense expenditures
rate of $65 billion a

year

hit

the

Federal deficit

of

disagree¬

to think that by

seem

will

this

Exchange

partnership in William
Company, Jan. 31.
from

is

new

Alexander D. Read will be con¬
sidered by the Exchange on Jan. 31.
John S. Bauman will retire from

John

expenditures going to be

/.over¬

partnerships, and corpora¬

Expenditures
Probably an

be —how

How

The other is: How high are

There

year

Exchange

to

me

One is:

66,000.00

(in¬

tions

year

compared with what is expected?

changes:
Transfer of the

to

seem

$2,820.27

fixtures,

some

Cutting-Down of Defense

be¬

-

196,901.75

stock

discounts

Customers'

economy.

our

—

Bank

Reserve

19,905,487.16

de¬

and
:

-

$158,781.72,

ple

goods
,

$20,646,927.25

______

notes,

and

drafts)

this year than most peo¬

billions

process

direct

bonds,

Banking-

expendi¬
by

in

Government

States

.

con¬

will

business

items

cluding

would reduce its risks of

course

balances,

reserve

cash

Loans

many

and

these expenditures going

are

'

(L. A.

in

textile

next New Year.

there

defense

Weekly Firm Changes

bership

Laird, Bissell & Meeds

Bell

durable

to be?

equitable tax for banks.

of

Bank Stocks

120

having
the

of

key questions.

high

The

before being subject to

The New York Stock

ba

been

—here

it

necessary

provide

New York Stock

Will

If that

Level of Defense Expenditures

study by the Federal Reserve

in

the

and

this

of

bentures

part of

tion

current

the
the
the

by

made

collection

Other

year

plant and equipment ex¬

industries by

the

in

desirable.

is

YEAR-END

COMPARISON

the

to be the case the same
of
rugged
competition we

ment

than

successful

problem and in leading to

OUR

indications
of

gin permeating the capital

profits levy is not great.

excess

York

New

obligations,

do. That, as I see it, means
more
competition in the civilian

sumer

that banks have adequate capital for the
protection of depositors.

"With

end

completed, and at least the
of the strictly defense

branches

it effects

as

taxes

current

necessary

the

over

call

•./ASSETS

and

become

problem of taxation

conscious

are

to

published

1951,

31,

a

Banks pursuant to
the
Banking Law of
of

provisions of

bungling at the top.

Now about defense expenditures

course,

with

of

State

paying

proves

.■

difficult

the

penditures will be passed.

pay

of the supervisory officials

some

December

on

accordance

in

enough—to the naive.

wave

boom in

of

interest in the matter by acquiring the factual informa¬

an

preliminary,

toward

have

inequities in the present tax law.

are

OF

CONDITION

OF

level

price

any
of

a

tax.

Obviously, there

the

by the

building up great parks of tanks
airplanes which would
be
substantial part of new plant and
and equipment installations called doing nothing but getting obsolete
Given this general pros¬
for by
the defense mobilization —fast.
that

.

return, there would be few institutions that would have to
an

competitive

more

still

Colonial Trust

ti

For 1952 and

the
total

a

allowance for debt before incurring

banks

and

REPORT

sort

If

taxes.

I

how

wonder

to conclude that business

going to get

in

Federal

will be

regulated public utilities which

as

well

may

manage

The Easiness Outlook

special

The

tax.

it, adds up
competitive
the year 1952

see

more

business situation

i

using the invested capital
consideration with re¬

groups

some

I

as

generally

a

of

rate

a

above

profits tax rate of 30%

excess

maximum overall rate of 70%).

a

one

which do

Since when is

profits tax.

law

tax

present

taxable at the

are

de¬

rolls along.

14

page

be lower.

course,

the

be stretch¬

to

ing off into the future indefinitely.

facil¬

On larger banks the rate of return

excessive?

ex¬

were

many

cluding

Continued

bank with $100,000,000 of

return of only 3.98% on its capital

a

be

than

United

earn

mid-1950.
can

Cash,
balances
with
other
banking
institutions,
in¬

In other, words

capital is permitted to

since

fense boom seemed

normal and surtax.

paying the 52% tax on the $8,300,000, the net earnings

After

their

carefully made

profits tax levy and before

excess

an

for almost incredible

be

to

in

more

to

The truth is, we suspect, that we are now

bank with $100,000,000 of capital could earn $8,300,000

a

paying the 52%

would

All this sounds well

Con¬

expected

broad Government effort will be

a

at

goods.

deliberate

times

at

Superintendent

$10,000,000.

be

on

pected to be

relieve

to

keep
away

to

consumer

more

quently

v

the first $5,000,000 of capital,

on

the next $5,000,000 and 8% on all capital over

on

before

12%

earn

? >

seems

buying than they have been fre¬

joblessness by creating more de¬
fense jobs in the area.'—Maurice J. Tobin, Secre¬
tary of Labor. ;

stockholders' capital.

osition

;

task force where

Rather they rely solely on the

Using the invested capital base, the banks as a

Detroit.;

as

"Detroit will be the first

Federal funds, do not borrow money to be

as

their normal operations.

in

with

computing their invested capital base. Banks,

exceptions,

such

75%. of which they are able

large amount of debt outstanding,

to use in

/

going

And business decisions

military production in areas which, have been or
will be hit by material shortages. The Director of
Defense Mobilization has arranged for the estab¬
lishment of a task force, headed by the administra¬
tor of the defense production agency, to deal spe¬
cifically with problems peculiar to distressed areas

was

of in¬
corporations using the invested capital base have

this,

Most

equality.

profits tax

excess

It does

now

as

chopping

can

much

are now being taken by the
the conversion from civilian to

ease

an¬

it becomes increas¬

and

supplies of

available.

labor is

were

they do it?

not

are

You

Even

10%

areas

"Vigorous efforts

rates con¬

imposed most indus¬
tries were able to use the average earnings base of the best three
years between 1946 and 1949.
The banks, however, had not en¬
joyed the prosperity of those years and in the case of most of
the major institutions adopted the invested capital base.
the

when

Thus

used

in

stage

rush if they see

likely if,

soaring

placing

and

contracts

new

will be fi¬

to

ingly clear that defense expendi¬

unemploy¬

through

opportunities

Tobin

more

trolled.

a

J.

prospect,

tures

will

by Government and
industry in effecting a more
even distribution of defense job
Maurice

will

But
seem

the

with substantial

areas

equipped

not

achieved

the result or

was

monetary policies which kept interest

in

a

Buyers' Rush

fit.

surpluses will depend,
however, upon the success

,

,

alleviate

to

we

fear

things for

many

other big buyers'

labor

more

many

governmental

ment

than compensate for increases in costs.
did not participate in this gain and earnings
banks reached a peak in 1945 were actually

to

however,

Banks,
which

_

nancially

fa¬

new

buy

No

and

able

be

.

and

"The extent to which

fesnks
The

let

are

to

This year consumers

plants constructed,
job opportunities will expand
rapidly.

be taken into consideration
in this connection. The net result, however, is that under present
conditions the impact of taxes is extremely burdensome upon the
•

chance

As additional bil¬
defense procurement

in

the

by

long time.

production gains momentum.
lions

off

that they might not have another

as

The

touched

sumers

outlook is * for a tightening in
seasonal forces expand job oppor¬
this spring and summer and as defense

supply

tunities

This Week

Bungling

over-all

''The

labor

JOHNSON

E.

H.

By

period there

same

have been two stampedes of con¬

MEMORANDA
Assets pledged or

I,

best

Charles
the
of

and

F.

above

my

for

$1,666,606.02
Controller, of the
institution,
hereby
certify

purposes

above-named
that

assigned to

liabilities

secure

other

—

Bailey,

is

statement

true

to

the

knowledge,'and belief.
CHARLES

F.

BAILEY.

Correct—Attest:
C.
FRANK
E.

F.

D.
S.

DEYO]
BEEBE;-Directors

KINKEADJ

Number 5084

Volume 175

is going to keep on

it

Isn't

simply

.

The Commercial and Financial Chronicle

.

.

going up some.
matter of ele¬

a

mentary economics, you may ask,
that

strenuous

more

competition

lower

prices?
To that I
that you have refer¬
the old fashioned, prewar

means

shall

reply
to

ence

brand

economics.

of

have

we

increases

wage

Nowadays,
of

"rounds"

national

which

by

wage

that

and

with

what

is

here—I

campaign

I

am

dealing

expect the >;
to make ; any '

politics

As

I

it,

see

By JOHN T. CHIPPENDALE, JR.

will

be

running things
to leave them.

without

reference

direct

to

the

of

state

competition in the industries in¬

look

volved.

offer

I

that. process,

expect

in

that is comforting.

one

The

which is already

records

steel

,

major business set-back has got¬

underway in the
industry, will continue this

and, hence, that we may have
competition and somewhat

year,
more

higher prices going along hand in

ten

of

Presidential cam¬

a

1952 to
.There will be

ginnings

paign year I should, I suppose, at
least tip my hat to the bearing of

politics

on

last

A lot of

people regard it

the

outlook.
of de¬
the long

business

cisive

importance.

pull, I

can

as

For

how it might be—

where

case

run

a

transition
to

The
been

from

generation. There is quite
of opinion, I find, that

a

that

holds

our

will.

oessimism

veloped

campaign de¬
major differences

some

the

For

the

if

short

however—

run,

severe

for

has had no appre¬

year

the thin

side, despite slightly more volume, which makes quota¬
obligations susceptible to rather fast and sharp move¬

tions of these

This has been the case

ments in both directions from time to time.

accepting that de¬

for sometime now, and

featist point of view.

of

some

the

it is quite likely to continue that way until
surrounding these issues have been

.

syndicate headed
by Dillon, Read & Co., Inc., effect of which is consolidation
of all of the Authority's funded debt. Balance of $56 million
bonds taken by banks.
The largest public
bond

issue

offering of
has

been

ranged by Triborough Bridge and
Tunnel

Authority

•W.

a

ar¬

C.

Webster

Langley & Co.; Stone &
Securities
Corporation;

Securities

Union

to be

1,

1957

$159,000,000 are
being publicly offered by the 279
members

1,

1969,

of
the
underwriting
prices to yield from 1.45%
2.20%. The remaining $56,000,-

group at
to

000

of

the

bonds

being pur¬
chased from the Authority by cer¬
tain banks through fi^gotiation by
are

•

Incorporated; Alex. Brown & Sons;

'

B. J. Van

of

financing

consolidates

b""

V".

'■

;

;

...

Hyder to Conduct

Dillon, Read & Co., Inc. and are
not included in the bonds being
offered by the underwriters.
This

Rothschild & Co., and

Ingen & Co., Inc.

;'

■

**•/.

^

Short-Terms in Continuous Demand

Columbia Course

on

Small Investor

the

Authority's funded debt
pools the revenues of all its
"The Small Investor," a practi¬
present facilities as security there¬ cal course for the
layman in the
for. The Authority's vehicular toll
fundamentals of security invest¬
facilities
comprise five
bridges ment, will be given by Carl T.
and

arid

two

tunnels

in

the

City

of

New York which have previously
secured
two
seoarate
issues
of

bridge and tunnel bonds. The
ceeds

the

to

bonds

new

funds

other

and

Authority's

at

U

$211,629,000

present funded debt and to create
initial

an

reserve

of

and

the

available

$18 000.000,

two times annual debt

i

12

months

30, 1951, total traffic
fhoritv's

facilities

end°d
on

Nov.

t^e Au-

amounted

to

111,778.000 toll vehicles, tot^l rev¬
of the Authority we re $26,535,000 and net operating reve¬

sity

v e r

the

of

Institute

The
n v e

whole

stment

be

will

The

surveyed, with
the

the

046,000
nues

total

toll

were

revenues

vehicles,

Among

113,-

was

total

$27,042 000.

after

operating
377,000.

and subject to

traffic

Carl

reve¬

and

net

deducting current

expenses

those

were

associated

$23,with

Dillon. Read & Co.. Inc. in the

derwriting
The

First

are:

un¬

Lehman Brothers;

Boston

Corporation;
Blyth & Co., Inc.; Kuhn, Loeb &
Co.; Lazard Freres & Co.; Harri-

Ripley & Co., Incorporated;
Smith, Barney & Co.; Blair, Rol¬
Co., Incorporated: Eastman,

man

lins &

Dillon

&

Co.;

Glore,

Forgan

&

Co.; Goldman, Sachs & Co.; Kid¬

der, Peabody &

Co.;

tention
mon

T.

a

is

stocks

concentrated
as

on




normal

standards

Private

concerned.

are

New York commercial

banks, it is reported,

longer maturities of the partially exempts,

much

general

the type of security

larger proportion of
investors. Recognized

specialists in such fields
trials, railroads, public

indus¬
utilities,

as

oils, chemicals, etc., will serve as
duhng the course.
This is a "Short Course," which

guest speakers

Crowell, Weedon Co.

memberships
Stock

Celebrates 20 Years
ANGELES, Calif.—Crowell,

Weedon &
ern

Co., prominent South¬

California

investment

is

celebrating its
sary.
Established

firm

20th anniver¬
Jan. 18, 1932,

the Los Angeles

Exchange and with branch

offices

LOS

on

the

Ex¬

change's

gov¬

Warren H. Crowell

erning
board
were George M. Forrest (partner,
Paine, Webber, Jackson & Curtis);
Frank E. Naley
(partner, E. F.
>

,

Hutton & Co.), and Murray

Ward
(President, Hill Richards & Co.),
to serve three-year terms.

Commodity Exchange
William Reid
of

ident

elected Pres¬

was

Exchajnge,

Commodity

Inc., at its organizational meeting:
Jan. 21.
&

,

partner since 1936 of Bache

A

Co., members of the New York

Stock Exchange and other

and

stock

leading
exchanges*

commodity

Mr. Reid is also

director of the

a

Wool Associates of the New York

Cotton Exchange and

of the New

York Coffee and Sugar

Exchange.

Joseph Fischer of Joseph Fischer
Co.

elected

was

Lauer

Vice Presidents;

following

elected:

also

were

of

Treasurer.

E.

Theodore
&

Hutton

F.

A.

Co.,

of Geo. Elbogei*

George Elbogen

Co., Inc., David D. Haldan&'of
Littlejohn & Co. Inc., Hans A.
&

Vogelstein of American Metal Co*
Ltd.

Small Investors Real
Estate Plan Formed
The Small Investors Real Estate-

Plan, Inc., has been formed with
offices at 157 West 42nd Street,
New York

City, to act as distribu¬
mutual own¬

tors of certificates of

ership

in

Officers

real

are

estate

properties.

Albert Mintzer, Presi¬

dent/Mario J. Cefalo, Vice-Presi¬
dent, and Edna Gough, Secretary
and Treasurer.

:

J

■'

:—1
i
-

TREASURY.

U. S.

STATE
and

credit

and

for

which

The fee for the

course

is $15.

MUNICIPAU

Laguna

'

,

•

.

,

SECURITIES

k
*

|

in

Long Beach, Pasadena,
Beach and San Diego.

The

identity and partnership of
changed since its
Warren H. Crowell, a
native Californian, has been ac¬

the firm has not

formation.

tive

in

the

during the depth of the depres¬
sion, the firm gradually expanded
its scope

the

business

investment

for 25 years.

of operations, and today

porate

He is active in cor¬
affairs and a member of

board

of directors

integrated or¬
ganization conducting active units

corporations.
board

consists

of

a

well

He

of

was

several

just

re¬

chairman of the
of the Los
practically all phases of the
there
are
no
entrance
require¬
investment and brokerage service, Angeles Stock Exchange.
George
ments.
ah investment super¬ W. Weedon, Jr., has been actively
The weekly evening classes will including
associated
with
the
securities
begin on Tuesday, Feb. 5, and con¬ visory department and municipal
bond
improvement
department. business since 1927. He is a for¬
tinue for ten meetings.
Further
mer
member of
the' governing
The firm maintains a direct pri¬
information may be secured from
board of the Los Angeles Stock
vate wire to New York.
the Institute of Arts and Sciences
and
is currently a
From an original unit of a sin¬ Exchange,
no

Co.

,

in

carries

&

namely the

large and small deposit banks competing for these securities.

com¬

Ladenburg, of Columbia University.

Thalmann & Co.

more

Hyder

investment which meets the need
of

as

and'

possible
trends. Bonds,
nues
were
$22,662,000. T^e Au¬ preferred stocks, and tax-exempt
thority announced that for the securities are considered, but at¬
audit

Witter

Dean

1958/63s and the 1960/65s, have been going into strong hands, with

on

present

situation

Phelps Witter,
partner of

are

have been pecking away at the 2V^s and the 2V2s of 1956, as well
as the longest eligible bond.
The 1952/54s have also been among
the issues these banks have been buying.

enues

calendar year 1951

changes

Middle West and

emphasis
the

far

as

by

years

restricted obligations have been

pension funds, it is indicated, have been slightly more aggressive
in their buying of these bonds, at or just above the lows of the
year. These investors have nonetheless been keeping a fair amount
of funds in shorts, in order to go into non-Government obligations
when the opportunity presents itself.
Private trust accounts have
also been making a few more purchases of the tap bonds, with the
dollar averaging. idea evidently very much in mind.
It is being
pointed out that when prices recede they may be. inclined to stepup their commitments in these obligations.
Switching has also
been a bit more prominent in these bonds recently, with no definite
trend discernible, because there has been about as much moving
from the long taps as from the short ones. Income is more impor¬
tant to some, with the approaching eligibility holding the appeal

Sciences.

i

immediate

for others.

and

Arts

field

the

For

Columbia
n

auspices of the

„

1, 1957 to

Hollister,

under

which is to be increased after Jon.

service.

■---

Pyne, Kendall

pro¬

fro^

being used to retire all

are

the

of

Authority

Hyder, /of

small

the

three

last

The

looked for in this attitude.
getting somewhat more
attention, but it should be remembered this volume is still very
no

The

suc¬

to

Chairman post
held for the

/

obligations continue to be the features of the
money markets and, despite some tightening from time to time,
there is no let-up in the demand for these securities.
Treasury
bills are back to the levels "of early December and this represents
considerable'improvement over what was witnessed in the interim
period. Banks and corporations are still vying with each other for
Treasury bills, certificates and notes with some of them even going
into the near-term bonds.
Liquidity and its attendant risklessness
seem to have as strong a hold on the short-term market as ever,
and

all

desire and need to chase

a

The short-term

Co.; A. C. Allyn and Company,

& Co.; L. F.

ceeded

&

Equitable Securities Corporation;
R. W. Pressprich & Co.; Reynolds

July

Until there is

up

Shields & Company; Barr Brothers
&

Crowell

a

more

*

July

that

in order to acquire the merchandise, there is not likely
than spurts, here and there, with no sustained trend.
Likewise, unless there is a change in the feeling of buyers towards
the long-term Government obligations there is not likely to be
any substantial increase in volume and activity.
prices

through

investment

semi-annually from
to

Mr.

in the market for sale, but by

were

obtain these securities.

Corporation;

a na¬
White, Weld & Co.; C. J. Devine
banking; & Co.; Drexel & Co.; Hemphill,
group headed by Dillon, Read & Noyes, Graham, Parsons & Co.;
Co., Inc. Of a total issue of $215,- Merrill Lynch, Pierce, Fenner &
000.000
1%%
to
2%%
general Beane; Phelps, Fenn & Co
Salomon
Bros.
&
revenue bonds, series A maturing
Hutzler;

tionwide

of

members.

Reid President of
reported

was

income bonds

Part of $215 million financing negotiated by

revenue

It

fairly sizable amount of the higher
the process of a
little buying here and there, they were being whittled down gradu¬
ally, at prices near the lows of the year. All of a sudden the sellers
pulled the balance of these offerings, and this left the market
rather high and dry temporarily.
A rally was the result of this
change in attitude on the part of the liquidators.
There was an
upward price movement, in the sense that quotations were pushed
ahead with very few bonds changing hands because the buyers
were
not inclined to follow through on the incline in order: to
•

annual

meeting

uncertainties

cleared up.

$159 Million Triborough Bridge Bonds Offered

institu¬

tion's

to

Long Bonds Erratic

that has been in evidence in the
longer end of the Treasury list is being attributed to technical
conditions rather than to a change in attitude on the part of private
investors.
The market for these securities is still very much on

that

complete
having, a

the

The somewhat improved tone

cannot

economy

start of

the govern¬

of

Also elected

Market for

school

a

since the

the

been satisfied.

may

between the two principal candi¬
dates. It is not clear now that it

particularly

evidence

the longer-term Treasuries. This raises the
question as to whether the non-Government obligations will con¬
tinue to hold their gains after some of the new year demand has

transition without
business recession
of even a depression. In my opin¬
ion, there is no reason except that
provided bv a«sort of congenital

see

improved action of the corporate bond market which has

in

ciable influence upon

period

a

which

readiness

defense

factor, because it does tend to relieve the pressure
from time to time.
Sustained rallies, it is believed, would bring
about a change in this policy.

of the be¬

some

the

of

unfavorable

true to form.

mobilization

defense
of

no

underway in the second half
Presidential campaign year.

I expect

hand.

Since this is

a

disclose

Chairman

ing board of the Los Angeles Stock
Exchange at

riskless

Presidential year, I can

a

largest volume still in the short-term
obligations.
The higher income more distant maturities
have not developed much more of a following despite the ability
to rally from the low levels of the year.
Buyers of these securities
are not yet inclined to get very far away from short, even though
commitments are being increased here and there as prices tend to
soften.
Sellers have not been too aggressive, and this is not an
with the best tone and the

If, however, you prefer a fatal-,
istic approach to the business out¬

very

pattern,

The Government market continues to follow the same

through

often

year

Crowell, partner of 1
Weedon
&
Co.,
was
H.

Crowell,
elected

that's about where I would expect

n

Elects Officers;

Governments

on

23

Angeles S. E.

Warren

the present Administration which
the

up

Reporter

already set to provide
level of general business
activity through the year.
And

hence prices)

pushed

Our

are

rates and costs (and
are

Los

not

difference.

decisive

things
a
high

do

(387)

gle office, Crowell, Weedon & Co.
is starting its 20th year with two

cently

elected

of

governors

member of the board
of

several

of directors

corporations.

Aubbey G. Lanstos?
& Go.
INCORPORATED
15 BROAD

ST., NEW YORK 5

WHitehall 3-1200
231 So. La Salle

CHICAGO 4
ST 2-9490

St.

45 Milk St.
BOSTON 9
HA 6-6463

j

24

The Commercial and Financial Chronicle

(388)

-Continued

-A?-v

-

from first

page l

..

.

have

Thursday, January 24, 1952

been

m

Canadian Securities

has been

continuous rising scale

a

listed

curities

capital investment, both private
and government. Mr. S. M. Webb,

vestors

the

of

Canadian

Within the past few

Bank

ex¬

months, in¬

the United States have

in

of Commerce, estimates that since

been

the end of open warfare in

developments in Canada's natural

capital

investment

1945,

Canada,

in

resources

government and private, has been
20% of the national income

This

year.

investment

year

by all agencies is now estimated
at around $4,500 million, indicat¬

ing

of

trend

a

sion and

continued

capital formation.
But, not all this growth in capi¬
tal formation has
ada's

own

from Can¬

come

resources.

United States

into its
territory at

capital has been flowing
northern

neighbor's

accelerated rate.

an

indication

An

this

of

gigantic

flow of capital is that more than

,.$1,250,000,000
'

j

has

been

added

to

the investment in Canada by U. S.
insurance companies in the

life

,past ten
of

U.

The present total

years.

life

S.

insurance'funds

at

work north of the border is nearly

.

Jr

$2*500,000,000,

•Institute

according

to

the

Insurance.

Life

of

The

investment in Canada of

U, S. life

.insurance dollars is divided

lows:
"

fol¬

as

$900,000,000 is in Canadian

Government

bonds;

$600,000,000

is in Provincial and local govern4

ment

bonds; $750,000,000 is in Ca¬

nadian corporate bonds,

and $150,-

000,000 is in mortgages.

a

■■

However, their Government

-

in

do about it.
was-

A

complete explosion
to

necessary

Allies

the

to

was

wake

Canada
have

and

new

greater extent than

J

but

over

velt, grouse about taxes, and thoroughly "god-damn" those foreign-

partial list of such companies
Ltd., ers who
Calvan Consolidated Oil & Gas,
money.
Canadian Atlantic Oils, Central
includes Anacon Lead Mines,

taking

are

much of

so

our

,

,

that

irom

the

of

that

fact

modern methods of
not

necessarily
confined

be

aggression

or

to

are

likely to

even

military

or

war

Undermining and ideological boring from within are as
as military assault from

of

squeeze more out

a

Hitlerism to Germany and that is
an

important

mind

when

matter

to

pondering

measures.

in

what

might happen here,

effective

keep

over

the

Our book-taught economists and

public in general, having al"V.:-..
without.
Abraham Lincoln once ways seen inflation come from the
support a said, "If this Nation is ever de- top, have been trying to stem inExplorers, Ltd., Jupiter Oils, Ltd.,
large and ever increasing number stroyed, it will be irom-.within— flation by credit regulation, priceNational Petroleums, and Transof
organizations
with
euphonic not from without."
;
fixing, etc. In doing so, they are
Empire Oils, Ltd. Another com¬
titles, highly paid secretaries and
Russia has evidently embarked frying to change the effect -with—
pany, Sapphire Petroleums, Ltd.,
staffs who send us regularly a lot
has been approved for listing and
upon a policy of using a mixture out. changing 'the
cause.
Wage
of bi ochures containing what they
both methods—harassing
and raises never were the major cause
the shares will be traded
in a
know we like to
hear; that everyshort while.
vveakening us and our allies by °r even a materially contributory
thing is all wrong and must be
the assaults of her satellites, and cause to inflations of the past, and '
In their early stages, when the
stopped, also telling us what great
.boring from
within bv various for this reason these economists
stocks were selling at much lower men we
are, etc.
forms of exceedingly clever prop- are so wrong in proposing the old
figures, purchase of the shares by
We attend dinners and meetings
aganda qf Marxian philosophy, remedies for the present inflation.
U. S. residents was frowned upon
gotten up by professional pro- each
adapted to the conditions of■-Credit
restrictions,;.price-fixing,_
by the Securities and Exchange moters where we talk to ourselves
^he country they attack.
etc., will never stop the present
Commission for technical reasons and
solemnly assure one another.
While I fully realize the neces- inflation—that's
like trying to
even
though the companies were that everything is all wrong and
being directed and guided by rep¬ cant §0 on like this. When .the sfty 0f our armament program and keep down the level of water in a
firmly believe that the only way- bucket by putting a lid on it while
utable .Canadian
business
men.
national campaign comes around,
t0
avert
World-HI is to be
so
water is/being forced in through
Thus, / Canadian
stockbrokers we are going to cure the whole
14 thugs in the the bottom.
could not offer the shares for sale business
Of

.

course,

do

we

-

,.

.

•

in

^ong thaTThe

by sending

the

United

brokers

could

country.

States
not

orders •/from

accept

residents

r t

\

U.

and

This

large^contn-:
? °I!i
then comfortably

S.

buying Committee
in * that

relax

as

and

sit down in front of

we

,i

confidently listen to

the election returns-untrt !! —

did; not pfeverit those with

desire to take part in the devel¬

In the

Kremlin dare not risk ^eir necks
open' warfare,; we.

by- declaring

J„

, the

,

-

undermined

bein„

^'our

meanwhile, the AFL, CIO,

time be alive to

same

oTou/home

„er

the radio and

"

a

the

to

come

United

work

more

opment of these companies from
placing orders directly with Cana¬

oil

gregate is

than double that

more

of pre-World War II

days.

1

The rapid growth of investment
in the business and industry of
Canada is expected to be sustained
in the period ahead, the Institute

The present total of Cana¬

says.

dian corporate bonds in life insur¬

portfolios

ance

border
years

is three

times

and

ago

amounts

this

are

iron

ore

that

the

of

ten

large additional
being added.

for

a

index

$100,000,000

investment

development

Another

of

now

Just this past year
commitment

side

of

in

made.

was

greater

par-

ticipation of United States inves¬
tors

in

Canada's

industrial

and

the

UMW, Farmer's Alliance and organizations of that kind are con-

the

fields rising rapidly
through
discovery of oil by big Amer¬

atrocious

villainous
the

profits

corporations

the.

of

that-

and

ican
companies who have been
active in the area for many
years,
local
financial circles
feel
that

and

structure

^

The old form of inflation rarely
(usually only in times of war or

post-war) got out,of control. So ,
long as the causes, of Inflation '

collapsing were

the usual' superabundance

.™*'ap -8. of credit,

headT

etc., etc., has nothing whatsoever

numerous other
Canadian stocks
will be admitted to
trading on the

commodities; and that

exchange

over-the-counter

or

doubling and quadrupling of
pensions, vacation pay, etc.,

]s

printing

press money; or

to

do

with

the

rising

prices

of

wages must

higher and higher to keep up
with the rising cost of living, etc.
And the average voter whom we
go

in

New York this year.

the

disease—the

sider

ills

most, important-

of

forever

economists

splitting
inflation*

increased

listings of

Ca¬

reach

never

nadian securities in U. S.
it should be

Government's Bureau of Statistics

in

attempts to keep

record of these

becoming

latest

crats

transactions.

covering

a

Its-

October's

purchases

from

figures,

trade

all

countries

luxury-loving
looked

down their

show

noses

aristosuperciliously

at the rottenness

within their walls and the barbarians
gathering without. - It isn't
within the scope of
my subject to

in

-

the

cover

$464,300,000,

/

rections*

firmly believes that

the last analysis, to its leaders
who

aft

jn

cause

0f'

myriad

of- ills

now

troubling the world but in .order

sorts

i

Purchases of securities from'the

U. S. in October amounted to
$93,100,000 compared with $40,200,000
in
the
corresponding month of

1950, while
totaled

1951,

sales

to

$61,700,000,

700,000.

the country
against $60,-

In the first 10 months of

the

purchases

$436,900,000,

aggregated

$222,600,000
and the sales amounted to
$433,100.000, against $474,800,000.
In

October, purchases from the

Kingdom were valued at
$1,900,000, against $5,000,000 and
the

sales

totalled

against $800,000.
chases

were

to grasp

-

BOTTOM

UP

$1,900,000

Ten-month pur¬

valued at

matters.-

existed

WORTH

4-2400

NY

1-1045

Botitou !#. >IaN8.




beyond the power of the Germans
to do anythingjuntil their masters,
the Allies, wete aroused to action,

.

There

can

be

no

doubt that our

to

fit themselves into the

buying
and
prices. The bottom
ciety, the working

chaotic-motivating

jig-saw puzzle created by the last
war.

»-'.b

v

?%•

v

v

•

•*.>

-,

and

Ulators

is

gathering strength—far exceeding
even

now

the

sacked

in relative strength that
hordes
which

barbarian

Rome

and

destroyed

the

then world's highest form of culture
and
civilization.
And
re-

they stopped the

progress

ilization for

than

Purchases from other countries
in October were valued at
$1,600,-

years.

"There was once
a
night of a
thousand years."
Bear in mind the Russian bar-

totalled

$1,200,000
$2,800,000,

against

$2,300,000. In the 10 months,
chases

against

aggregated

$5,200,000

the

and

pur-

$12,000,000,

and

the

sales

$3.7,000,000, against $10,400,000.

member that when

the

top.

satellites—has-arisen -and

her

of

the

driving

up

layer of soman and the,
people in gen-

more

they did that
a

of civ-

thousand

A noted historian described
disaster in these Words, i.e.:

barians'
different

idea

of

from

civilization
ours

ancient barbarians'

as

idea

is

was

all came from
Governmental deficits
causes

as

the

different

credit.
and

inflation of currency

Entrepreneurs,
consumers,

spec-

realizing

the situation and its implications,
rushed
into
the
markets
and
prices

went

up

in

an

ascending

spiral until the mark reached the
astronomic level of a trillion to
one.

While prices were thus skyrocketing, workmen's wages and
generally trailed far behind
and naturally there was a tremendous amount of dissatisfaction
amongst the masses.
Practically
everybody, except the speculators,
was opposed to this inflation and
pay

,

how the new lorm of.
tion operates. After all, in our

,

*
,

f

P,AY of everyone wha. helped ?to ,
plaivproducetransport' and -store..,
it, plus the tax^load.* .You ^viU t

the-- sufferers.
Their
income trailed for be- ^10^Ge
prices. Today it is the mStead - of. WAGEb

necessitated

-

barbarian horde—Russia and

A

-

of free economy—what does

periods, inflation was
by
the
entrepreneur,
speculator and consumer at the
*

■

■>

the price of an article consist of?
R we Sot away from narrowly
construing "WAGES" as the only
form of PAY-, we find rthat - the
P^ce of an article consists almost
entirely of the sum total of the

initiated

TOP

i

which I described it was

man case

In all previous

of

'

400,000, against $4,100,000.

sales
Fifty CongreNa Street

about

v

In the Ger-

FROM

has

$15,400,000,
against $25,100,000 and sales $7,-

against

history we

disintegrated- the reverse. '
'
'i
':
mother -country—proud England,1
I made a special trip to Gerbankrupt..and dependent iipoii our-"many during their inflation epaid, while the former constituent isode of the early 20's and studied
parts are floundering about trying its working at first hand.
The
—

000,

Two Wall Street
New York 5, N. Y.

measures.

and

-

.

fine-

inflation

-

~

their

instead

THE TOP DOWN.

eral, were
The British Empire—the might-" wages and
iest and richest empire that ever < hind rising

against

•

United

INCORPORATED

masses

*

mystical di-

For the first time in

Government

A. E. Ames & Co.

its

have inflation coming FROM THE

imminent

CANADIAN STOCKS

seeking

supporting

the, urgency of the situation let's look at only one or two.
rest of the common

Corporation ,*:7

and

debating what is and what is not
tprhnicallv

$63,700,000, and in the JanuaryOctober period were
$477,500,000,
against $489,300,000. *.

2

who

hairs

the

sooner or later brought

1NFLA-

patience with many

verbose

our

are

unpopular with

corrective

CANADIAN BONDS

......

con-

TION.

against $252,700,000. Sales in the
month
were-$66 500,000, against

Municipal

I

Government's huge borrowings
anct spending have been a conmarkets,
spun theories with bales of statis- tributory
cause that would he
today.
:
.
:
expected that securi¬
Ucs and a„ the whjle overlooking corrected to time, just as it was
ties transactions between Canada
Rome advanced to a
very high the most important fact, that this after World War I; but today quite
andj (.other countries would in¬ state of prosperity and culture, inflation is different irom any the a different picture presents itself,
crease
in volume.
The Canadian but it was finally smashed, due, world has ever known before.
Lets take a look at,it and sec
With

months of the year to

v

which

cancer

j ftave little

■

V

impossible to
brought /upon

obviously

all

COVer

wages,

that month at
$96,700,000, against
$46,400,000 a year earlier, bring¬
ing the total for the first 10

Provincial

-

the '

up

simply the boom spirit of -the
populace, a tremendous majority
our
domestic
economy
by
the Qf the public, consisting of all the
closely together, both in World dian stock brokers and
many did ducting year round, year in and
War II and more recently in the SO.
creeping Marxism of the past 18 working classes, salaried workers,
yeai
•;.
out, day and night, glassdefense production job, the flow
yoars and the crack-pot measures etc.,
suffered because their puy
With American interest in the roots campaigns telling the people
tbat came along with it and
of
funds into
that country has
I trailed behind the rise in prices.
development of Canada's western that.the high cost of living is due, shaU, confine myself to but one Thus, inflation always was: very
grown steadily. The present ag¬
to
As

States

..

to

participate

A

expan¬

relatively high rate of

a

to

is

season

they have been in recent years
through
the listing
of
several bridge games, movies, radio, video,
etc., so that one barely has time to
more Canadian companies on the
occasionally "god - damn" RooseNew York Curb Market.

over

each

able

f1

-

Tragic Implications
,

football

The

changes.

President

American

on

»

you can't
nation than '
Romans, ; and js jn ft. aud even after-that
explo- '
basketball and prizefights are still should the Russian barbarians be
sjon> ft requirec( all the machina- '
on; winter vacations are about to successful in destroying our civtions of Schacht and the other
begin and when they stop, it will ilization
of
individual
freedom German
sleight-of-hand * bankers
be about time to go shooting and and substitute theirs, it would into keep their economy at least in
fishing. Then the baseball season evitably set back human progress
WOrking condition
*
•
4
will come on; the golf season will for hundreds of years.
•
There is no question in my mind
start, etc.
Many pooh-pooh the danger of but what these events were a
In
the
meanwhile, there are Russia's conquest, forgetting that very important factor in bringing

agricultural development is the
rapid economic growth growing number of Canadian se¬

important foundation stone

of

m

.

And Its

of Canada's
♦

mm

Today 's New Type Inflahon"':
s New
Inflation

WILLIAM j. McKAY

By
An

m

.

halted/long before: it '■*

the final bursting point.

reached

with

■

out

^

who owns the forest^or th®>
Ihine, or. .the.|iield -wnerc thc raw t
materials
PAY of those_

who^fonn,-wan^port'
jpd merchandise- lhe frnished -ftr-i
! ^
WAGES are the FAY-Of. .oiMy.z
®ne Part of ^el
'

^

f
'

'

huced the article^ Tnere-iare taiso;/)

those who did the,planningrWno *
furnished the-tools with which it.,
was *nade or transported, people ,
who carried it on their shelves
^ was purchased.by the
final consumer and all these are
entitled to PAY just as tne man

£uts> hammers or oenas 11

int0 shape.

In present day inflation the
cycle starts—just as it is starting
this very moment—by the strongest union demanding additional
pay in one form or another. The
I must say for the Germans, that employers
may haggle, bargain
had it been within their power, and squirm but under present laws
the course of their inflation would and conditions what can they do

Volume JL75

Number 5084

.r.

The Commercial and Financial Chronicle

.

(389)
about
labor

it -in

.

the/end?,

unions

have

plete monopoly and
tion

After

today

in posi¬

are

ttr raise their pay

to almost
any levels.
As the unions raise
their PAY* prices of course must
go up and. mis ultimately brings
about arideiand for PAY increases

by all the other members of
economic structure.
>

A pay

ing

our

owners get only a real
purpose — to support their
small percentage of the to¬ paid personnel.
product while workers' pay
There
are
a
few institutions,

very

tal

represents the bulk of it.
torian

of

the

future

increase acts like throw¬

economic pond.
that of highly

The first

then follows the

wave

our

is

wave

unionized

labor,

of the next

best

unionized,

and

each

successive

wave,

tool

owners,
but
to be jacked

have

follows

including

However,

prices

lawyers,

the

until

etc.,

economic

pond

affected.

physi¬
barbers,

as

teachers,

servants,

whole

come

such

the
been

has

Everybody raises his in¬
much

as

forgotten

he is

as

men

if

even

and

able

the

are

poor

:

about

and

on

to do

wage-price

the

the

of

one

to
the

some¬

enlighten his

followers

futility and harm

spiral,

couldn't afford to do

he

The

so.

top

leader knows that the next, leader
is gunning for his job—another
down the line
of

the

local

on

to the

union who

knows that certain other factions

life savings, the retired physician,

in

merchant,

chance to denounce him as
having
"sold out to the bosses" and oust

teacher, etc.

After the
end

the

of

pond,

naturally risen
the added

• •

has reached the

wave

having

prices

to include all

up

costs, the unions start

another hue and cry about a raise
in the cost of living and off we

another round. I don't know

go on

which
and

politicians

realize

dishonest

are

all

this

it,

his

local

looking

are

for

a

men

naturally want to hold their

jobs and have
cept

lead

to

alternative

no

their

ex¬

sheep onward

All

sound-thnking business

men

r

well

are

of the

aware

first

place they are
very intelligent and able men and
they have large staffs of welltrained

economists

am

spiral

works."' Reading

various ilabor
struck

which

publications,

by the effective

their editors

Hitler's

way

I
in

handling
They have adopted

the situation.

tactics

are

of
accusing the
doing what they
doing and shouting

other fellow: of

themselves

are

louder than he does.

Every issue

of the labor organs devotes a large

portion

when

they

in the saddle.

were

of

its

to

decrying
deploring inflation and blam¬
ing it all on the greedy capitalist
space

and

myself from

Lenin—a

Machiavellian

genius

Fe.

by

In

destruction
and

he

fective

structure

his

told

inflation

social

his

was

followers

that

of the most ef¬

one

was

revolution.

tools of

took

whole

the

political

goal,

he

of

meantime,

inflation

used

ping

the rest.

up

tool it

tool for mop¬

a

as

And

effective

an

indeed—when the proc¬
finished the Government

was

was

had in their power

everything

ex-,

and

for

even

from /time
in

for

these

time

to

the

muzhik

to

has

come

a
wholly owned sub¬
Haystack Mountain De¬
velopment Co., to mine the uran¬

stock

sidiary,

for last

on

It
even

this

factor

new

Santa

in

Fe

how long

dollars

thing is realized.
when

the

the

sole

the

wage-price spiral to be
disease

of

economic

our

body.

lotted

my own

government the master instead of
so until
the
servant of the people is a
comprehends the matter of tremendous
importance.
And the hell of it is, that
But all
of
these
points have
the
common
man
finally been ably expounded by others—

ently will continue to do

when

men¬

common man

facts.

tioning the fact that profits are does at least partially comprehend particularly Ed Hutton, who de¬
only a very small percentage of the facts, he still slyly thinks that serves great credit for his unself¬
the total cost, jandi fcis rof course he will "get his" ahead of the ish and able efforts. I believe that
has a tremendous effect upon the other fellow and keeps rushing while much remains to be done
,;mind
of
the
poor : uninformed along the same path.
to inform the general public —
working man.
They also never
point out to him that these socalled "profits" constitute in fact,

I

am

f

afraid that under all these

circumstances
on

this thing may go
for quite a long time—it may

you are

well informed

on

most of

these subjects and I can only add

—remember that you can't change
momentarily halted at times by things by inaction—you can't ac¬
some
hire of
temporary cause but then complish anything in this situa¬
They never point out to him- that another surge will follow, etc. tion by push button methods and
to tools is due the credit for /about Only as public knowledge spreads, you can't buy safety by sending
90% of our productiori. and that will the halts become longer and

of the planners and the
the tools - of /production.

pay

be

.

,

-

somebody

a

check for

few dol¬

a

labor contributes barely 1Q%„ X
•_? effective,
but at present
lars.
I JTo prbye this, let's; look back public enlightenment is progress¬
Individuals
and j corporations
ing very slowly and I shudder to
,150 years. sAt that time; the pro¬
think how far this thing may go must do all in their
power
to
ductivity pffhe nation was the re;sult of about 90 % human effort unless- we all pitch in and do
bring enlightenment to the ulti¬
everything in our power to stop it.
and, 10% tools;; Our standard of
mate source of political power—
There, gentlemen, you have the
iliviftg hasigone up since then dimore

.

\re6tlj*"iii

of

effort." While

the

of

situation—and

brbpdrtidh^

mechanization
the

our,

industrial

"planners

:and

tools,have during

this period benefited in

de¬

some

gree/ by far the greatest benefit
has °one to the manual worker.
When

the

working

man

150

years ago was producing with

only

naked

made,

not

incentive to go

for the

reported to

stock

common

for

the

aver¬

10

years*

Less than
the

result

finances

company's

larly

third of theso

a

distributed

was

with

strong.

divi¬

as

that

the

are

particu¬

is

another

This

for the fairly general feel¬
ing that dividends will eventually
reason

be liberalized.
,

Earnings last

presumably did
of the
were

not

yea*

those

match

preceding

more

year when then*
substantial extraordi¬

adjustments.
Nevertheless^
by any other standards they were
unquestionably
excellent.
The*
present estimate is about $13.5ft»
nary

$14.00 per

common

share.

for five years.

run

While the prospects for the pro¬

John J. Laver Joins

posed

development must be ac¬
cepted as nebulous for the time
being, there can be no question
but
that
the
potentialities are

hands,

he

lived

mental
we

first

stop

in

a

this

voters.

a

on

is

slow

and that

ing

can

sense

your

what

one

down

sure

and

way

to

eventually

rising tide of inflation,

voter.

average

Everything
wealth

only

in

and

your

jeopardy

very,

very

—

have

you

very

get

to

—

your

liberty

work

—

is

it's

Seligman, Lubetkin Go,

You can't do that

sending

to
a

by send¬

another—

one

check

to

some

which, incidentally, is more than
can be said of many of our major
industrial
corporations whose
stocks

are

the

pay

divi¬

dends

its common stock.

on

The

omissions

were

There

1939.

much

live

on

more

his

comfortable

lived

that

he

is

present scale;

house

conveniences,

an

with

all

automo¬

bile, video, movies, vacations, etc.




secretary—you must do something

where the

voters

has been

terrific waste of money

a

"are

at."

There

will

admit

Herbert

member of the

by those who have been taken in

nership

by

and

will

one

Roberts & Co.

numerous

"bureaus"

"associations"

which

have

only

on

retire

R.

Washer,

Exchange, to part¬

Feb.
from
on

1.

Mr.

Washer

partnership
Jan. 31.

in

Laver

Gladwin & Co.

i

June S. Jones Go.
New

Partnership

PORTLAND, Ore.—June S. Jonei*
& Co., a new partnership, h&»
been

formed

with

offices

then

in

U. S. Bank Building, to succeed
pointment last fall over the con¬
Atkinson-Jones & Co. Partners arcs
servative dividend policy adopted
after the 2-for-l stock split, but June S. Jones, Roberta D. Jones^
this

the
the

well be corrected over Edward T. Parry, and J. Sheldoo
As it is, Jones, Jr.
indicated $4.50 rate ($1 quar¬
may

reasonable future.

affords

year-end

$0.50

the

and

terly

return of 5.7%.

a

feature

strong

extremely

capital

structure.

the

road

had

the

of

net

record

Specialists in

of the

Fe picture is its

Santa

Partnership

in 1,933 and 1938was
some
disap¬

reduction.

so

and

J.

demand

such

failed to

company

conservative

Washer to

in

now

duces

hovel

John

by various fiduciaries. Moreover,
in only three years since 1900 has

Another

Dean Witter to Admit

railroad oper¬

a

Seligman, Lubetkin & Co., 30
There are few railroads that
Pine Street, New York City, mem¬
can point to so impressive a longbers of the New York Stock Ex¬
term record as can Santa Fe.
In
announce
that John
the long history of the present change,
Laver is now associated with the
company, dating back to before
firm.
the turn of the century, there has
Mr. Laver was formerly with.
been no year in which a net loss
Edward A. Purcell & Co., and prioxr
has been sustained.
Net income
thereto was a partner in R.
has been reported in every year

extra)

late.

is—enlightenment of the

pamphlets

by

the

can

do about it?

There

or

I

inquiry—Well,

sound equity of
ating property.

though

a

would

have been any
ahead with plans

unbroken

in

there

plant. The AEC con¬
purchase the uranium is

Even

modern

dends

first

new

to

long

to

earnings

Earlier reports,

favorable

the

$9.58

or

highly encouraging as
quality of the ores.
Ob¬
viously,
subsequent
exploration
has done nothing to negate the
early findings. ? Also, unless the
indicated extent of the deposits

commorv

1950 when $15.64 a share was re¬

the

been

on

ported.

any¬

were

also, the*

the

1941-1950, inclusive.
The
besi
showing for the period was in.

were

to

Dean
Witter
&
proportionately low scale. Today, that gets the information to the
Co., 14 Wall
having the benefit of the tools man in the workshop—the farmer Street, New York City, members
furnished by the investor, he pro¬ —the truck
driver—you must go of the New York Stock Exchange,

one-room

able

cents

been

company

on

been high.
Adjusted,
year's 2-for-l split, earn¬

to

mean

and

discoveries

tract

sider

will

it will be before

inflation

the old forms, I don't want
to leave you thinking that I con¬

property in 1950.

power

has

aged

is, of course, much too early
to attempt to guess just what

presumably

cure

ings

that had been discovered

ore

the railroad's

Having spent nearly all my time
on describing the fallacy of trying
to cure our today's new form of
by the methods used to

only has the

consistent earner, but,

hs»3 formed

ium

Santa

a

earning

had

replacements.

Not

Santa

and

Fe

When

power

been carried on

Anaconda

the

resented by the General
and Adjustment

the flames of inflation and appar¬

corporation and that without

his

jointly

—

personal in¬
terests and look at this situation

the

owners

life
last week, with speculative inter¬
est stimulated
by announcement
to

came

Within the limited time al¬
to me, I preferred to get
one idea across clearly rather than
substantial.
Not only must the
give you a smattering of many. direct income possibilities of the
objectively. I ask myself how far
And there, are many, indeed too
ore
be considered but, also, it is
will this go—how will it end? This
many.
quite likely that a development
episode will make very interest¬
Unquestionably unnecessary of this nature will bring with it,
ing reading for some research
spending by our government. is over the long run, appreciable
economist about a 100 years from
also a potent factor of inflation, new traffic sources.
It is an im¬
now.
Here we have inflation for
particularly while we have an un¬ portant / new plus to add to a
the first time coming up from the
balanced budget.
situation which is also considered
bottom at a time when democracy
The
rapidly progressing con¬ to have large unexploited
oil
is, for the first time in the world's
centration of power in Washing¬
potentialities.
The
interesting
history, really coming into power.
ton— the emasculation of states'
part is that most railroad analysts
The labor leaders and the poli¬
rights—the twisting, bending and are convinced that even without
ticians
in
order
to
remain
in
stretching of our Constitution all these outside activities, Santa Fe
power are both compelled to fan
in the direction of making the common is attractive
purely as a

Sometimes, I try to disassociate

huge profits." They point
to the "millions of profits" of this

and "his

the

common

.

inflation
the

research

and

They must know how this

men.

Santa Fe
Santa Fe

this decision had

ture.

today recognize the right of labor cept the rags on the muzhik's back

to
collective bargaining.
Unions
an
absolute
-rate,'/ whether
stupid
or are
necessity.
We
crooked, all politicians are afraid, have seen in the past, before the
because there are too many votes advent of unions, labor shame¬
at stake,r to do anything
about fully exploited by short-sighted
stopping the Iseginnirig .of; the greedy employers. We want no
But what labor
cycle, the raise in wages, the in¬ return of that.
needs today is wiser and more faritial cause of inflation.
*
>v
s
However, I am convinced that sighted leadership to avoid mak¬
the heads of our larger labor or¬ ing the mistakes employers made

In the

is

equipment debt outstanding,
Mortgago
Mortgage 4s, 1995L
of developments in the uranium
Probably the company reduced
where it will do the most good.
field.
It was announced that the these at least
moderately last yeasExplain to everyone whom you Atomic
Energy Commission had through open market operations
can
approach inflation's devasta¬
signed a contract to buy uranium
Moreover, practically all equip¬
ting effects—not only on business from
Anaconda
Copper Mining ment has been purchased outright
and banking; that it is like a con¬
Co., processed in a plant to be rather than
through issuance a*
flagration that spreads and grows; built
near
Grants, New Mexico. equipment trust certificates os
and if permitted to continue, con¬
The exploration work
leading to conditional sales contracts.
sumes the
entire civilized struc¬

ess

in their mad rush.

any

ganization

best

Founda¬

in Russia he first
him from his desirable position. ^ confiscated all the large tangible
Labor leadership has become a properties such as railroads,
highly lucrative calling and these banks, factories, etc., and then

and

about

what percentage of them are just
too stupid to see, through it. At

facts.

the

of

Economic

American

thoroughly
appreciated
the
gunning for his job truth of this and since a thorough

below that is

living on a fixed income— and so on
including the provident working president
who is trying to live on his

it

of

devils

man

would

merely

up

break even.

so

thing

cians,

the

doing really ef¬

are

work—one

everybody other than the tool their material and a description of
who contributes his part their methods. I am sure you will
to production received a 10% in¬ find it very helpful, not only in
crease in
the situation but in
pay, it would not only explaining
wipe out the entire PAY of the disseminating
the
information

labor leaders wished

•house

however, that
fective

if

to

economy,

wonder

ly ask for these repeated increases tion, fathered by Fred G. Clark
in wages.
They must know that and his associates. Write them for

those of the indirect contributors
our

The his¬

will

how the labor leaders could sober¬

owners,

•

stone into the middle of

a

Yet the tool

all

com¬

a

23

RAILROAD

SECURITIES
Selected Situations at all Times

profits, the management has fol¬
lowed

a

consistent policy of
All

maturing

debt

bonds,

JBfflSHviitii
J h

and

all bonds that were callable,

were

pany

less

paid off.
as

This left the com¬

of the end of 1950

than

$200.5

million

of

with
non-

CO

p

«/wyiI » T t •

25 Broad Street

Y.

New York 4, f

Telephone BOwling Green 9-6ify)
Members Nat'l Assn. Securities Dealers

Inc.

26

The Commercial and Financial Chronicle

(390)

.

.

Thursday, January 24, 1952

.

Business and Finance Speaks After the Turn of the Year
been

President,

England Railroad Company

Lehigh and New

tonnage

of

one

the first 11 months

This

.

the

was

case

the

the

on

Near

and

We have,

The

point.

sound, healthy domestic oil industry to free
any vital dependency upon un¬

a

the United

national

The

is

security

the

oil

within

The U. S. Department of Agriculture forecasts
increase in beef and veal supplies in

Oil

Producer, Ardmore,

!

Oklahoma

to insure the industry's fullest participation in 1952
maintaining the national security.
Given the proper incentives of an
adequate price for its products, a
continued
equitable
tax
program

sary

in

commensurate

with

the

volved, together with
share

of

foresees

meeting
record

'

In

in¬

proportionate

a

anticipated
in

an

for

its

in

products

-V-D;:-.

,

addition to the

forecast,

obstacles

no

successfully
demand

1952.

risks

materials, the domestic oil

industry

defense

recommended

increase

same

levels

plies

may

An

will
to

record

demand

authorities

the

domestic

have
excess

barrels

daily

to meet current

the

over

demand.

and

incidental

adequate price for crude oil
provide the finances necessary
out -the

carry

of

incentive

to

a

fair

to

needed

increase

The

for

expanded

and

and

expansion

oil

industry's

program

proportionate

have

to

rate

of

investment

to the

•

exploratory or "wildcat" wells
drilled.
Development of fields already

be

goal set for 1952
The

consumers

constantly

of

undertakes

assumes

on

brake

various

factors

and food

is

traditional

its

normal

to

the

it has provided

year

play »■ of

directly




indirectly

and

at

a

in production.
the

ture

for

affecting

feed

have been blessed with

fertilizer

been

This factor is extremely important

nation's stock

feed

now

grains is decreasing

The probable shortage of farm

that

can

under

be

no

system

substituted

private enter¬

At

the

a

to

use

mand to
leaders

time, however, it is
all thoughtful citievery means at their com¬

same

incumbent
zens

upon

caanes

w.

iio.f

persuade their Congressional
reduce as far as possible unnecessary expen¬

to

ditures and try to bring back economy in

government.

Under the circumstances, business faces the New Year
with justifiable caution.
The immediate outlook is en¬

operations

of profitable

There is full

tories

not too excessive, farm income is
great shortages in materials for

are
high but
good, and there are

no

Defense goods will reach greater production

civilian use.

If

of

plant

In
on

sulphur

more

is made

available

farm

machinery

and

by steel restrictions.

the

demands

are

equipment

has

The draft and de¬

cutting into

the

citing these factors I do not wish to cast

future

food

optimistic.

production.

farm

labor

As

a

matter

of

any

gloom

fact

I

am

However, these possible developments should

be borne in mind in

looking ahead.

The tense international situation and government pol¬

icies and programs may also assert a strong influence

on

experience—with OPS

and. with OPA

in

1945

controls
and

during

the

1946—warns

us

price fixing results in unstable markets,

disrupted distribution of meat, and inefficient operations.
There

is

also

the

danger

that government

have

a

We need fewer controls

depressing effect

There
which

was

were

no

on

now.

edicts

may

future agricultural produc¬
by government—not more.

need for the livestock and meat controls

imposed

with in

a year ago.

There is

even

less need

They have again proved to be impractical,

inflexible and discriminatory.
Livestock and meat price

as

an

incentive to

drift towards

a

personal effort.

Other¬

Welfare State administered by a

controls, with their negative

future when interest

the

activity lessens.

rates recede and busi¬

Bankers will have this in mind in

endeavoring to maintain
efficiency and to obtain

high

a

degree

of

operating

fair remuneration iior their

a

services.

AUGUST IHLEFELD

-

President, Savings Banks Trust Company, New York City
Mutual savings banks have reason to expect the largest
deposit gain since 1946 this year. Investment outlets in
the financing of home building and industrial expansion

promise to be

in the first half of the

more

than adequate, especially

year.

'

Federal'

taxation

of

additions

to

surplus for the first time in 1952 in¬
jects a new influence that will affect
investment policies of many savings
banks.

•

The

\

trend

of

deposits

in

mutual

yet reflected
national-prosperity because of with¬
drawals by many depositors to pay
for consumer goods purchased during
the scare buying waves late in 1950
savings

banks has not

early in 1951. Should consumer
buying this year continue in about
normal volume, as was the case in
the last
half of
1951, savings are
bound
to
reflect
the
stimulus of

and

August

rising personal incomes.
In the last three quarters of 1951,

Ihlefeld

deposits in the mutual savings banks of the country in¬
creased at an annual rate of over a billion dollars. The
last year

000 was

in which deposits rose by more than $1,000,000,Should savings banks in New York State

1946.

permitted to credit dividends at rates higher than 2%,
of them have requested, the deposit gain may be

be

food supplies for civilian use.

past

value

we

as some

further

stimulated by such

action,

as

has been the case

other states.

in

■

competitive

>

.

In

1951, the savings banks of the country added ap¬
proximately $1% billion to their mortgage holdings. With
the declining trend in new building, the supply of mort¬
gages \8511 probably be smaller.
But since the pressure
for accumulating new mortgage loans has moderated for
institutional investors as a whole, the mutual savings
banks-may encounter no great difficulty in satisfying
their mortgage loan requirements in 1952. The sharp rise
in

corporate borrowing and the

on

higher yields available

corporate bonds will provide other opportunities at¬

tractive for mutual savings bank's1 investment.
Taxation

of

additions

to .surplus

by

mutual

,

savings

results, and tremendous cost to taxpayers and law-abid¬
the

em¬

ployment at good wages, and with comparatively few
exceptions most enterprises, especially the heavy indus¬
tries, are operating at close to capacity. Retail inven¬

fertilizers

situation would be eased.

curtailed

fense

of

important factor in the food production pic¬

1952.

for them

and

can

further armed conflict.

for defense
years we

added

control

forces

most effec¬

the

tion.

consumers

we

maintain

to

strong-jriilitary
defense establish¬
ment, as-indeed this costly program
is essential in our efforts to be spared

ness

generally favorable growing conditions and good crops.
Unfavorable weather in 1952 would put a serious crimp

artificial

successfully for individual initiative
prise.
The

hands of

production.

that

of the present controlled
economy.
industry has demonstrated ably
or

is

For the last several

year

importance as the
greater obligations and re¬
be discharged under the handi¬

direction

Holmes

indirect controls on pur¬
chasing power, such as taxes and credit restrictions.
These indirect controls, modified as needed, should be
relied upon to prevent inflated prices.
This is on the brighter side. And it all adds up to a
rather pleasant outlook for food supplies for 1952.
Unfortunately, these prospects are complicated by

past

The

of governmental

John

and

cases

prices

on

proportion

even

sponsibilities which must

.

in

the money in the
the other side of the counter.

defense program, the

of other nations.

This resourcefulness

industry

difficulties

industry. Year after
improved product to

cost far below that

selling below

prices will be

With large meat supplies in prospect, the
tive

Our

be reached.

can

overcoming
oil

be

of

industry's importance in the

American

will

that

mean

policy

self-perpetuating government.
The firming of money rates in recent months will give
banks in*1 general an income equal to or above that of
1951. Against this income must be charged the increased
operating expenses and higher taxes with the result that
the netsprofits of banks may well be below that of the
previous? year. These higher expenses which banks in
industrial centers and large cities are incurring at pres¬
ent may,r pose a problem which will have to be dealt

sup¬

good part of this

a

meat

■

the oil industry added $3,000,000,000 to its
investments, the largest single year's expendi¬

A

Pork

The U. S. De¬

be

the nation's meat

of

suc¬

not

does

modify^3jur

wise

supply.
insure the

discovered must continue without abatement.
If the oil industry is allotted materials in

caps

hazards

•

completion of the domestic

necessary in 1952.
A large
number

a

will

1951,

capital
ture.

will

taxation

risks

development
•

of

allocation of sufficient steel will

1952.

In

the

to

Actually

Production

program

incur

refining facilities.
cessful

prices?

pork

is another

exploration and refining program.
the

25

as

supplies

decline slightly.

What about

appreciably.

1,000,000

amount

provide

Lamb

last year.

as

because

The continuation

much

as

1951.

over

to

Wirt Franklin

farms

expected to remain at about the

are

oil-producing capacity be increased

^

on

governed by the amount of meat

recognition of the domestic oil industry's
position in the nation's defense program will be neces¬

This

of real

could

30%

year.

The proper

degree,

prospect of cessation of

hostilities-in Korea there is hope that
another World War can be avoided.

1952
to

present ceilings

FRANKLIN

foreign

If cattle num¬
bers are kept at current levels, the
processing of cattle and calves in

build-up of cattle numbers

beef

WIRT

the
some

over

1951, and new plant construction will be large.
However, activity and "busyness" are not enough. Em¬
ployment and higher wages and shorter hours are not
the final solution. The reduced purchasing power of the
dollar and higher taxes leave the individual with com¬
paratively little to retain in the form of savings after
living expenses. We must bring about a wider margin

partment of Agriculture expects both

revenues.

a

than in

Actually the potential is much
greater than this because of the large
and ranches last year.

closely, the experience of the railroads taken as a
in the United States, reflecting the facts men¬
herein before, namely, that costs have increased

than

10%

a

1952.

r

Our Operating Ratio for 1950 was 56.28 while our
Operating Ratio for the first 11 months of 1951 was 59.2,
3.9% greater than the Ratio of Operating Expenses to
Operating Revenues in the comparable period of 1950.
Our increased Operating Ratio in 1951 over 1950 reflects

urieasiness

before taxes in most lines of endeavor.

1

Prospects for meat-hungry Americans in 1952 at pres¬
are favorable.
Livestock production is on the up¬
swing and that means more meat.

of

.

more

usa

ent

nish the net income for 1952.

whole

North

President, Swift & Company

has far exceeded increased revenues result¬
ing from increased freight rates and, of course, the in¬
creased tax rates. Not knowing what the future has in
store for us in this connection I am not prepared to fur¬

tioned

of

There is

the

choose

couraging for the continuance

materials,

rather

boundaries

JOHN HOLMES

was

costs, due to increased wage rates and increased costs

continental

the

America that is readily available for production arid
in time of emergency.
»
'

is another matter entirely.
$2,060,775, while our esti¬
mated net income for 1951 is approximately $1,635,000.
The decrease has resulted from the fact that increased
income

net

of oil.

sources

must not be jeopardized by
failure of the defense administration to recognize that it

Our net income expectancy
our

foreign

thatSwe must soon
we Jhall follow.

and with-the

States from

certain and insecure

be decided one way or the other.

situatiorChas lessened to

oil industry of the un¬
particularly in the Middle

situation,
however,
emphasizes
one
clearly indicates the necessity for the main¬

tenance of

our

rnUst

The

domestic

muddled

It

•pectancy.
1950

way

again in World

East, cannot be defined at this time.

of Maryland,

the?£;are grave issues, both foreign and domestic,

and

the domestic oil

world.

modities, we expect to handle approximately the same
business in 1952 as in 1951. So much for tonnage ex-

In

Montana.

World War I and

in

settled international situation,

ascertain what
business
we
might expect in the
calendar year 1952. In analyzing the
responses
received we are of the
w. «. i^awa.us
opinion that the tonnages handled "i
1952 will not vary more than 2% or 3% from the ton¬
nages handled in the other years mentioned.
In other
words, from a tonnage standpoint, both considered as
a
whole and considered by relatively important com¬

iC

and

HOFF

prevailing expectant feeling that we
are
approaching the dividing road,

up a

The impact

order to

receivers in

Dakota

W.

Union Trust Company
Baltimore, Md.

1952 promises to be a decisive one in the
country. Not only is it an election year,

year

which

85% of the petroleum products used by the free nations
of

shippers and

of 1950.

but

War II when the oil fields of the United States supplied

namely,

naturally, contacted our

The

history of

margin of oil reserves readily avail¬
be produced and used in the defense of the nation.

able to

three

the

handled,

modities

of North

producer built

major com¬
anthra¬
cite, bituminous coal and cement,
has varied over 2% in the first 11
months of 1951 when compared with
Not

the

the private enterprise system

Under

commodities.

other

Basin

ton

and New England.
Fortythree per cent of the tonnage han¬
dled is prepared anthracite, 15% bi¬
tuminous coal, 25% cement and the
17%

unproductive.
competitive system

the

basin of Eastern Colorado and Nebraska and the Willis-

Lehigh

remaining

President,

industry has pro¬
gressed in the finding and production of crude oil. It
opened the big East Texas field.
More lately, it has
accounted for the opening of the Anadarko Basin of
Oklahoma, Texas and Kansas; the Denver-Julesburg

handled by the Lehigh and New Eng¬
land Railroad during the first 11 months of 1951 ex¬
ceeded the tonnage handled in the comparable period of
1950 by approximately 2%. Approximately 67% of this
tonnage originates on the line of che
The

had

considered

Under

'

CHARLES

ven¬

turesome

EDWARDS

W. H.

has resulted in the finding of oil by the
oil explorer in areas which theretofore

system

6

Continued from page

banksfwhere surplus exceeds 12% of deposits, will

ing operators, should be terminated.

some

increase

in

holdings

of

tax-exempt

cause

obligations,

Number 5084

Volume 175

.

The Commercial and Financial Chronicle

.

.

.despite low yields prevalent thereon. Shoyld the New
.'York State law be modified to permit, mutual savings
banks to invest their surplus in preferred and common
such

.stocks,

tive because

income

will prove especially attrac¬
of the relatively low tax rate applicable to
investments

(391)

and the people of the world run from poor paper money
to gold, the Canadian Mining Industry will have an .op¬

j

.building and essential industry.

to

40,000 barrels
cial

mately 10,000 new
the

The

year.

us¬

serve

by

000,000.

construction

The

program

approximately $15-

on new plants and lines. This
expenditure will be affected by the
availability of material.
The second

000,000

Donald

S.

Kennedy

50,000 kw unit of the company's new

100,000 kw generating station near Oklahoma City was
placed in operation during 1951. A new 70,000 kw plant
is

being constructed in Southern Oklahoma to help

now

the

serve

because

growing load in that
the availability of

Fuel costs are low
natural gas from local

area.

of

'

,." *

fields.'

_

_

forecasts

Company

* '•

*

-

.

indicate

slowing

a

in the

down

during 1952. We anticipate an average
gain of about 9,000 new customers with a gain of about

1951 were up 12%.
The forecast for 1952 is about 7V2%. Home building is
in

11%

sales.

kwh

Revenues

for

expecred to decline somewhat in our territory; however,
a number of new residential developments
are planned
for the year
in

this

and it is anticipated that the rate of growth
to

Sales

trend.

National

the

construction in

of

type

our

the

will be above
petroleum industry,
area

including interstate pipe lines, are expected to increase

J; v."/ :

substantially during 1952.

which

rapidly developing progressive area. The abundant
natural resources of this territory, with a competent
a

offers many new opportunities to industry.
A very favorable climate is an added asset.
Therefore,
we anticipate the continuation of a
satisfactory rate of

relatively

section

new

of the

commer¬

an

mal

barrels

Mountains, of 25,000

per day
and by withdrawals from
inventories of 35,000 barrels per day.

Minckier

California

supply has been about in balance with

nor¬

demand.

demand, and

further increase in normal

a

will result in

a

smaller increase in local supply which
tight supply situation. This will probably
be corrected by shifting military and offshore demand
other

to

of

sources

supply, which

can

be done at added

costs.

to

open

to increase supply in California would

the

up

wonderful field

Elk

seems

Hills

Naval

Reserve,

to be condemned to

but

this

continuation

a

dribble of oil

and using critical
which could be better used elsewhere.
a

materials

country

expenditures

Capital

in

the

producing

Gold

the

factor.

Exploratory .effort to find new oil fields will
aggressively carried on.
Coast oil companies' earnings for 1952 will
probably be somewhat lower than in 1951 as a result
of higher costs and frozen prices, but they should be at
reasonably satisfactory levels.
Since the 1948 strike, the Pacific Coast oil industry
be

Pacific

are very good.
If logic prevails, this will
throughout 1952, but this is a field in which
logic does not always prevail.

employees
continue

The

division

anti-trust

has

brought

We

believe

Industry

in

costs.

Where

the

prayer

pre¬

industries
raising the

other

themselves

by

the

of

of

Deoartment

Justice

suit against the California oil industry.
suit is without foundation, but should
for relief be granted the industry would be

S.

the

product

which

backs
a

the

in

has

allowed

But

rates.

on

four
St.

cents

on

instituted several years ago,
subsidy, commonly known as COST AID. To
the extent that the cost of producing an ounce of gold
exceeds a minimum figure established by the govern¬
ment, the gold mine is reimbursed for a portion of its
costs cn the excess on a part of its production. The gov¬
ernment has recently announced that this program will
be continued through 1953.

addition,

more

the

industrial

the

eventually

may

Canadian

approval

Fund to permit
in

what

and

important,

obtained

of

the

into

the

become

Government
International

the industry, if it

form

free

so

has

at

far
last

Monetary

desires, to sell gold

markets

of

the

world

where

gold commands a premium over the official price
of $35 per ounce maintained by the United States Treas¬
ury:
At present, this premium is in the order of 10%
above the official price, and as such may not be of bene¬
fit to the marginal producer as compared with the Cost
Aid

However, the Canadian Government has
given to the Mining Industry the option to accept Cost
Aid or sell into the premium markets,
depending on
whichever is more advantageous to each company. Hence,
as
long as inflationary monetary policies are pursued,
program.




fa¬

so

to

that

the

reasonable

is

it

consumption

to

figure;
seems

expect
a

a

further

unlikely.

Although inventories of leather in most categories are
still

somewhat

above

optimum quantities in relation to

are considerably reduced from the high points,
and all indications are that further reductions are being

sales, they
made

currently.1 These facts combined with a more ra¬
price structure than prevailed a year ago, give
a fairly steady production during the bal¬

tional

promise for

of the year.

The raw materials of leather making
by-product of meat consumption. The large quan¬
tity of cattle on feed and good supplies abroad of animals,
such as goatskins, should provide ample raw materials
for all leather requirements, and thus prevent any ma¬
terial risedn hide and skin prices. In recent months most

ance

a

found

tanners

it

impossible to sell their leathers at a
The, improved demand for

replacement.

over

leather resulting from the expected increase in shoe pro¬

duction

plus steadier hide and skin prices should tend

to correct this situation.

.

v

,

All of

this, of course, presupposes that there will be
unforeseeable international complications.

no

JAMES
President,

covered

they

a

only

a

RAND
Rand, Inc.

Continued upward trends

in sales of business machines,
particularly in foreign markets, and a marked increase
in the

use

of business machines and systems to speed up

the administrative control of industrial

production, were

outstanding developments in the of¬

during 1951.
whether there will
195*2

fice equipment industry
The
be

question

continued advance during

a

will

to
some
extent
on
international situation

depend

whether

the

materially changes world economic
conditions, and also upon whether
taxes

become more burdensome.

Rand's

Remington
1951

in

were

the

than

booked

orders

37%

better

running

previous

although

year,

government restrictions on certain
curtailed
manufacturing

materials

income

showed

increase

an

James h. Rand

1950, even though added taxes
restricted earnings considerably.

over

Remington Rand's net income for ine first eight montns
of the company's fiscal year, which ends March 31, 1952,

$9,836,491, equal to $1.92 per

totaled

share of common

no prospect of decreases in basic costs of labor
materials, improvement in administrative and pro¬
duction techniques through the increased use of business
machines and systems should offer one of the principal

increases

some

have

been

so

opportunities

pair of shoes from

Henry

S.

Mitchell

had

for increases in wages and prices of

supplies.
of

insufficiency

for

the

their increased

rate

increases

costs will

impair their

be to

the heavy expenditures of capital
which are necessary in order to meet the requirements
of the national economy for constantly improved service
in the transportation of goods and passengers.
ability

to

finance

THOMAS

SMALL

leather

are

certain

industry

production

for

economic facts about

which

1951

is

in

the operation

the shoe and

completion and delivery of the first UNI VAC, the world s
advanced electronic computer, which was turned
over to the United States Census Bureau last June f@r
use

in the

This
most

compilation of the 1950 census tabulations.
electronic computer, capable of reducing the

new

calculations to fractions of seconds, was
Eckert-Mauchly division of Remington Rand

intricate

built by the

Philadelphia. Additional UNIVAC
delivered early in 1952 to the U. S.

in

private companies.
Remington Rand is also

later to

systems will be
Government, and
*

developing several types of
special purpose electronic and mechanical business ma¬
chines and control systems for handling figures and data
required for commercial operations.
Expansion of foreign sales and operations was one of
the high-lights of the company's progress during 1951,
1952.

Combined exports and

1950.

pair in

_

sales,

most

460,000,000 pair as compared
The consumption of shoes,

however, shows a slight increase—486,000,000
1951 against 483,000,000 in 1950.

of all

improvements and new developments in types
of business machines, saving time and manpower, and
in the acceleration of production schedules.
One of our great achievements during 1951 was the

pany

with 491,000,000 pair in 1950.

not only in increased

reflected

but also in

The estimated shoe

stand out.

be

and should continue in

Treasurer, Allied Kid Company
There

economies

.

should

This

is probably
attributable to a desire on the part of the Interstate
Commerce Commission to check the inflationary spiral.
It
seems
obvious, however, that inflation cannot be
stopped by regulating one segment df the national econ¬
omy on a principle which is not enforced against the
other segments. That being true, the only result of con¬
tinuing to refuse to allow the railroads to recoup them¬
The

for

businesses.

fraction of what the railroads have

to others

pay

selves

H.

Remington

and

Detroit—that they have

Louis to

To this end, the government
of

1952

close

substantial reduction in shoe inventories

Omaha to Detroit and

beef from

to

In

and

and so small—for ex¬
ample one-quarter of a cent a pound

materials and

form

service

long delayed

Clifford W. Michel

in

recur

production

With

mission

good

1% less

capita

the stock dividend to be is¬
sued Jan. 29, 1952, and after providing for income and
excess profits taxes in accordance with the new laws.
These provisions for taxes amounted to $16,281,500 for
the eight-month period, an increase of 123% over the
corresponding period in 1950.
.
The company's sales during the eight months
period
ended Nov. 30, 1951, amounted to $146,851,151, an^ in¬
crease of 33% over the same period for 1950.

shipping and traveling public

transportation

which

a

will

per

stock after giving effect to

True, the Interstate Commerce Com¬

but it also supports the frontier communities from
the search for new mineral resources proceeds.

one,

railroads

cilities.

lem, just as it recognizes the coun¬
try's need to keep the industry alive,
for gold mining in Canada not only
produces

the prices of their products, and if the
prevented in 1952 as in recent
years from
increasing their freight ||
and passenger rates in amounts suf¬
ficient to cover past and future in¬
creases in their costs, many of them

ing

ized

long recognized the industry's prob¬

the Canadian dollar to make it

and

resulting increases in their production costs by increas¬

of

has

Government

rise

to

prices of materials and supplies continue
other industries continue to pass on the

for constantly improved and modern¬

continuously new cost sav¬
ing methods in the attempt to stop a
shrinking profit margin from becom¬
ing a deficit.
The " Canadian

If wages and

will be unable to meet the demands

seek

tp

3.13

5.4% less

aver.

prewar

operations to some extent.

MITCHELL

are

selling price of the article produced,
the gold miner, in the hard currency
areas, has not had this right and the
selling price of his product today is
little changed since 1934.
The only
defense left to the industry has been

2.97

:

to

3.16

production in 1951 was 5.4%
less than the prewar average, the consumption was less
than 1% below prewar.
From the above it seems prob¬
able that the shoe consumption in 1952 will be close to
490,000,000 pair. It is unlikely that the disparity between
production and consumption which took place in 1951

Net

Canada

itself to face again the adversary it has struggled
against continuously for more than 10 years. This adver¬
sary is inflation, with its concurrent rising material and
defend

the

While

a

HENRY

pares

labor

compared

the

W. MICHEL

Mining

(estimated).:

1951

refining

and

President, Duluth, South Shore and Atlantic R. R. Co.
1952

1951

3.11

3.21

_

3.15

3.17

1950

branches of the business will be at high levels in 1952,
limited more by inability to get steel than by any other

President, Dome Mines Limited
In

3.27

"

adversely affected to a very serious degree. There is
little prospect that the suit will come to trial in 1952.

CLIFFORD

3.16

3.14

1949

of its unbroken history of complete uselessness, produc¬

only

Per Capita

(prewar average)

1948

profit

A sensible way

be

1936-1940

Consumption:

Per Capita

are

For 1952, we can expect a

labor supply,

growth in this
during 1952.

day and

per

per

has been free of serious labor troubles and relations with

:

Oklahoma is in the heart of the great Southwest
is

L.

R.

ing

of growth

rate

1949 by about

extraordinary de¬
in large part,
increase in receipts from other
principally Borneo and the

Rocky

Construct ion expenditures for
Oklahoma Gas and Electric Company

for 1952 calls for

Military

believed.
over

great

These

Iran.

and

areas,

during 1951 amounted to about $11,-

impor¬

mands have been met,

large defense industries.

any

but the

be assigned to the troubles in Korea

not

does

Iran,

and*

formerly

markets

shipments by about
day, so only about
75,000 barrels per day of demand can

of

company

War

Korean

in

offshore

35,000 barrels

approxi¬
customers during

gain

oil

as
is commonly
liftings were up

to the growth of di¬

average

are

high of

was

Production

1952

year

tance of these factors is not as

by all major classes of business,
an

the

for

replace

supplied from

for Oklahoma Gas and Electric Com¬
pany in 1951 was 17V2% above the
previous year. This gain in our com¬

and

the

enters

industry has experienced increased

our

gain in weekly output of electrical energy in the
.South Central region of the United States, which in¬
cludes Oklahoma, continued to lead the Nation during

age

industry

demands

industries, larger

These facts

a

3.16 and the
summarized in the following

high

table:

with crude oil production at capacity, demand in excess
of production, and inventories at very low levels.

S. KENNEDY

pany was due
versified small

oil

Coast

The

The output

MINCKLER

low of 3.13 and

a

In the four postwar years the
3.13.

capita

1936-1940, the

years,

.

Pacific

President, Oklahoma Gas and Electric Company

1951.

L.

prewar

President, General Petroleum Corporation
The

During 1951,
D.

3.16 pair with

3.25.

low

R.

The year 1952 thus offers mutual savings bdnks an op¬
portunity to achieve new records of service to the nation
.in the promotion of thrift and in the financing of home

For the five

average was

portunity to obtain the resultant premium prices for its
production.

dividends received by corporations,

from

One of the steadiest economic factors is the per

consumption.

27

foreign production of the com¬

increased more than 50%

creased

Remington

Rand's

approximately two and

the output during
distribution has in¬
half times over the

over

foreign
a

company's prewar foreign business.

28

The Commercial and Financial Chronicle

(392)

..

Thursday, January 24, 1951

.

Board

Kidder, Peabody & Go. Admit Three Partners

Public

stood

Utility Securities

houses

1929.

Southern Natural Gas Company

1945

and
in

from $34.7

reappraisal of the company's position, and increase in the
price-earnings ratio. However, these figures do not tell the whole
story, since the company in 1947 distributed to its stockholders
one share of Southern Production Company for each share of its

basis,

Never

due to

Sherlock

Per Share

Dividends

$4.34

$2.50

51

3.82

2.15

40

-301/2

1949

32.07

3.27

2.00

36%-28 %

26.76

3.15

1.75

30%-201/8

1947—_

22.05

2.66

*1.50

1946——

19.26

2.44

28V8-22

Hibbs, Robert C. Johnson and Francis J. Cunningham have
as general partners in that firm.

2.70

1.25

24%-17

14.70

2.91

1.25

1943

14.54

1.84

1.25

those

in

1936.

13.74

1.68

1.15 i

12%-

to

-

the

of

partners

new

previously reported in

was

1.25

from

2.55

1.25

191/4-15%

7.10

f 2.01

1.06

18

*

Plus

share of

one

At

recent

a

talk

the

before

New

York

forecast for 1952, but

indicated that there would probably be no
substantial change. The upward trend of sales might be offset by
a slight lag in
obtaining rate increases necessary to adjust for
higher field costs of gas. The latter are estimated.at l%c per
mcf or a total increase in cost of about $3 million per annum
(some 84c a share after allowance for taxes). However, the lag
in obtaining higher rates will be less serious for this company
than for most others, because of its large proportion of direct
industrial sales, rates for which do not require approval by
the FPC.

was

Southern's cost of gas for the 12 months ended Nov. 30, 1951,
6.53 cents per mcf and the price paid to different suppliers

this period

during

varied

4.62

from

cents

cents.

11.90

to

"We

expect our average cost of gas to increase to 8 cents in 1952, to
10% cents in 1953 and to 11 cents in 1954," Mr. Chenery stated.
"We will be

Checking

these

of

material

factors

situation,

that

all

there

increase

against

been

the

in

deposits

of

"warehouse

shortage of

a

space,"

cash

plus

Since Korea

money

currency

To

digress for

look

a

little

moment,

a

let's

deeper into what has

happened to the inventory picture.
Just before Korea, at the end of

banks, totaled $110 May, 1950, manufacturers' inven¬
tories as reported by the Office of
billion.
By the end of 1947, it
Business
Economics of the De¬
had increased
slightly to $113.6
totaled
billion, at the end of 1950, it was partment of Commerce,
up a little more, at $117.7 billion, $29.5 billion, wholesalers' inven¬
and

the

latest

$120 billion.1

figure

is

around

A rise in the money

tories

$9.3

were

retailers'

billion

inventories

supply of about 10% in five years
not
the
sort
of
background
which precedes dangerous infla¬

billion, for
300,000,000.
twice

the

tions.

1929,

a

and

$14.5

were

grand total of $53,-

a

proved to be too high for comfort.

imately 121/4 c

has

But

imately 4c is paid in taxes

so

that Southern has left 8V4C per mcf

to cover all

of its operations, including a return on its approxi¬
mately $100 million investment. It is therefore apparent that any

increase in the price of gas in the field has to be
passed along to
the ultimate consumer and that such field price in our case in
the future will exceed the cost of
transporting the gas to the
market."

in gas

annually,

or

port in 1952.

25% of the volume of

which it expects to trans¬
Such increase does not require Federal Power Com¬
gas

mission approval.

The exact amount of increase to be posted

this

of

classification

under

sales

has

of

not

been

study and is expected to provide

Sales

78

of

billion

cubic

feet

believed to be in this
the

Natural

Increase

rates

Gas
on

same

Act.

64%

As

of

its

determined;

a

substantial

annually

to

but

it

on

is

*

sum.

distributors

for
(or 39% of 1952 expected volume)

resale to industrial customers
are

category by

a

reason of the
Southern may be

result

sales

volume

without

wording
able

to

Commission

action.
As the second

for

general

step the

company

will file for increases in rates

service—representing

36% of the total—coincident
with the increase in the field price.
Increases in this category
are subject to FPC
approval, but since rate increase applications
for

than $100 million

more

action, such increase

may

a

year

now

<

are

have to be put

six months after the application is made

waiting Commission
in effect under

and thus

be

bond

subject not

only to delay but also possibly to partial refund when the Com¬
mission finally passes on the
application.

:

.

,

...

"We do not foresee

danger the present

any

dividend

his listeners.

assured

situation which would
of

$2.50

"Neither do

we

per

share,"

-

seem

Mr.

to

en¬

Chenery

think i A wise to adopt the

suggestion made of increasing the dividend to *3
our

per

shard while

rate situation is still unsettled."

years.

Reserves
was

control,
a
expansion of sev¬

money-supply

eral hundred per cent
of three

years

accompanied
dence

in

in

period

a

less has always

or

the

lack

of

confi¬

the currency which

the dynamic stages

to

up

inflation.

;

(mostly

distributed

to

over

the past two

leased, since Southern Production
stockholders)

is

led
of the
.y ■'

V

have been

common

increased

Co.

stock this year,

sell about 170,000 shares in 1953, particularly if




infla¬

all sides there

the

increase

in

a

heavy

financially be

eight-ball

and

are

over

$24,000,000,000 total in
when

year

then

outbreak

inventories

immediately
the

of

after

Korean

the

War

a

no

help over
retailers get rid of thei

to

able

be

to

Coming back to the inflationary

if the two basic
requisites of real
namely, increase in

back
infla

ground

tion,
money
supply and shortage of goods, an
not
present, 'what
has
causei
prices to rise?
The third and in
tangible ingredient of price rise
is

the

velocity

turnover

or

o

supply; the speed at whicl
peoplie spend money.
Turnove
money
of

demand

York
times

in

deposits

City

1949

This

1951.

16.

times

ii

21

times

ii

than

better

to

Nev

from

18.7

and

1945

outside

risen

has

of

turnover

money

factor

is largely psychological ii
origin, based on "fear" of short
ages rather than actual shortages
The war
in
Korea, the highly

publicized and admittedly sizabh
defense

program

which

on

ou

hysterical mass-purchasing stam¬

country has embarked, the con
stant harping by government an(

pede swept the nation.

other

Remem¬

officials

on

the

threats

0

bering the deprivations caused by
inability to obtain goods during

inflation, and
"shortages to

World

War

mad rush to turn over money anc

rushed

to

salers

II,

bought

predicted

manufacturers

produce

dered and received

beat

the

retailers

shortages,

everything,

or¬

to

more

the

and

whole¬

.more,

ahead

of most

public

it

convert

the expectation o
come," caused th<
usabh

tangible,

to.

"things" before tangible usabh
things were no longer available
Price rises based on the psycho

went

logical or turnover factor of in¬
flation,
and
not
supported • by
By the Spring of last either of the two basic backgrounc
year,
when shortages failed to factors of inflation, are transitory
appear and easy credit terms were in nature and incapable of bein*
stiffened, inventory pipelines at sustained. Inevitably, by the lav
all
levels
were
bulging with a of supply and demand, such price
veritable "glut of available goods." rises must be deflated.
The time

out and stocked up at an unprece¬

American

dented rate.

have

wheels

turned

of

out

production

has

far

out¬

stripped the increase in money
supply. In 1950, for instance, this
country produced and moved into
consumer

channels

stupendous

total

the

of

following

goods

(see

Sixty-five million net tons of
pig iron (exceeded in 1951); 9.7
million tons of steel ingots (a new
high record; exceeded in 1951);
2 billion barrels of petroleum

over

(a

high record; exceeded in
1951; 1.27 million short tons of
copper (a new high record); al¬
new

most 40 billion board feet of lum¬

ber

(a

By
had

Table I):

high record); 6.3 mil¬
high
record; exceeded in 1951); 8 mil¬
new

lion tons of newsprint (a new

lion automobiles

(a new high rec¬
ord); 1.4 million non-farm dwell¬
ing units (a new high record);

the end of July, inventories
gained 32% or $17 billion

above

pre-Korean

levels,

to

an

all-time high total of $70,300,000,The

000.

alone in
thirds

increase

year's time

one

as

much

was

of inventories in 1929.

Since July,

What

an

outpouring of prod¬

It is small wonder that

with defense

even

demands

high, just
about the only visible shortages
these days, outside of a few criti¬
cal

items

has

been

which

the

government

stock-piling,

are

(1)

a

a

readjustment

now

ap¬

to be at hand.

How Do Commodity Price Change;
Affect Stocks and

A

Business?

study of American Financia

history

1860

from

to

date

show'

that, whereas stocks and commod

in opposite
though bargain sales have
there have been fa.
been increasingly numerous, busi¬ directions,
more months and years in whicl
ness inventory totals have leveled
off around $70 billion, but have they have moved in the same di
ities frequently

even

not been

The

reduced significantly.

Department

unforunately has
uring

or

ventories

of

no way of meas¬

reporting
in

'

Commerce

the

on

hands

the

in¬

of

the

refrigerators (a consuming public.
But if you
high record); 4.2 million elec¬ think shelves of the average citi¬
tric washing machines (a new high
zen
aren't
loaded, you'd better
record), and approximately 10 mil¬ look around
you.
Not only have
lion radios and 7 million television

such

pears

two-

the entire total

as

for

inventories

in

6.2 million electric

trillion feet to 5.2 trillion feet in the past
year, and the company
is actively negotiating for an additional 700 billion feet.
The

expansion program is carried through.

on

that

of the

well

was

productive capacity and the huge
total of available goods which the

ucts.

does not expect to issue any

other side

evidence

sets.

company

the

tionary equation,

1.8

but may

beyond

This

new

Southern has increased its
gas output 50%

stock

Throughout world history
gone

On

hopes to achieve in two steps an increase
sales prices to offset the climbing field price, first by filing

increase for direct industrial sales of about 50 billion cubic feet

an

is

,

Southern Natural

the

they would lik<

picture,

the

outside

thei

wares.

cus¬

tomers.

no

supply since 1946. At the end of
that year, the supply of money in
this country, as measured
by de¬
mand

shortage
and
(2)

in other countries where inflation

per mcf for its services in transporting gas from
the wellhead to the area in which it is consumed. Of this, approx¬

are

more,

going

pleasantly surprised if we can buy well-located gas
a price within gun-shot of this latter figure.
Southern's average sales price is 18%c per mcf for all of its gas.
The cost to it of such gas is about 61/2C so that it receives approx¬

for future delivery at

as

buy

hind

find first Inventories
Up Almost One-Third

we

has

riotV only

but

pledged to pay for "pay-as
past" purchases.
Thes<

stocked

df

(2) by a decrease in the supply
goods, or (3) both.
the present

that

income,

to

The Stock Marketland Business

Society of Security

Analysts, Chairman C. T. Chenery of Southern Natural Gas re¬
ported that the company's 1951 earnings approximated $4.34 a
share compared with $3.82 in 1950. He did not make any definite

already

present

people, much

Southern Production,

t Adjusted for 1939 recapitalization.

buy

you-use"

Overpriced Commodities,

6%

-

wherea
simply d<

future incomes for months ahead
are

8.27

more

the wherewithal to

debt

their

191/2-12

1937

more,

want

ant

present high commodity price
(see Table II). Many are so muc]

*

1939

much

who

distri

By

at

3

page

the

that

savings is bad.

spend

in

Continued

131/2-10

3.17

9.95

the "Chronicle" of Jan. 10.

9%

indicate

of

not have

147/8-10%

1942

1940

Re

of consume:

surveys

large, those who have the money
have most of the possessions the:
need, and cannot be counted oj

171/4-131/8

1.00

Federal

the

by

Board

serve

bution

Admission

17.54

1944

2.35

made

finances

33%-22 %

1945

11.74

more.

tests

ment

1948

1941

increased, too, s<
still plenty of money
goods, if the peoph
But
the
samplinj

buy more

want

that individua

have

that tnere is

Cunningnam

more.

argue

may

Formerly associated with Brundage, Story and Rose, invest¬
counsellors, Mr. Hibbs has been with Kidder, Peabody since
1946.
Mr. Johnson, general sales manager of the firm, has been
associated with Kidder, Peabody 14 years, and Mr. Cunningham,
who is manager of its corporate trading
department, joined the

-35%

Common

1.37V2

J.

capit;

per

a

firm

Common

$37.19

F.

Jonnsoit

on

been admitted

Price Range

Earned

(mill.)

1950——.

C.

Kidder, Peabody & Co., 17 Wall Street, New York City, mem¬
bers of the New York Stock Exchange, announce today that Sher¬

Gross

Revenues
;

Kooert

to

lock

.

Hibbs

rosi

populace of am
any
time, "owned'

at

savings

States

the

"owed"

or

You

which
added to the current price of 50 for Southern Natural Gas makes
an overall value
of 85, as compared with the 1937 low of 6%.
Despite this bonanza, the company's earning-power increased
steadily from the 1946 level. Following is the record:

1951-

before,

country,

This stock is currently quoted around 35,

United

billion to $79.4 billion

has

more

In

betweer

individua

total

1950,
the

Life

of

that

estimates

debt

stock has had a good

Institute

The

"growth" record, as indicated in the accompanying table—though
much of the eight-fold increase in price from the 1937 low seems

Dec. 31

non-farn

on

$19.2 in 1945 and $19.5 billion ii

Southern NaturalGas Company's common

Tear Ended

$20 billion

$44 billion, as agains

were

surances

outstanding.

about

debts

Mortgage

By OWEN ELY

own

at

from $5.6 billion at the end o
ii>*o
and
$b.^
billion
in
1929

up

the

people bought

huge

total

of

up

most of the
durable

consumer

goods

produced in the past few
years (see Table I), but they have
been busily hocking their future
earings to do so.
At the end of
1951,

consumer

indebtedness

as

reported by the Federal Reserve

rection.

move

The main

reason

for thi

tendency toward parallel directior
is

the

not

effect

commodities
due

to

stocks

have

0

vice

or

the fact

versa, but L
that large swing,

in the economy, upward or down¬

generally caused by out¬
such as changes ir
supply or changes in buy¬
ing habits and business conditions,

ward,
side

are

forces,

money

which affect both stocks and com¬

modities: in the

same

approximately the

direction

same

a

time.

Rising commodity prices tend tc
limit rises in stocks for rather ob¬

vious

reasons.

As prices rise, anc

the purchasing power of
is

reduced,

people's

incomes

pocketbooks

volume 175

Number 5084

The Commercial and

...

Financial Chronicle

(393)
become pinched, they need extra men
can
plan
their expansion
money to defray living costs, they moves
and project their profit
in
their
bonds, sell their margins with some assurance that
Mocks or fail to buy more stocks, big changes
in the price level
Imd have to borrow.
The rising won't
upset
their
calculations,
Lommodity prices, competing with profits and prosperity are encourjtocks for people's savings, there- aged. The exceptional prosperity
)y prevent stocks from gaining as of 1923-1929 was aided by the fact
|nuch as high earnings and divi- that commodity prices were steady
lends
would
otherwise
justify, with a slight down drift,
stocks for the same reason, tend
Of the other two alternatives,
rash

|o turn down ahead of commodi- rapidly rising commodity prices

|ies,

or

as in 1864, 1919-20, 1946-48.
fact that today commodities

The

rapidly falling commodity prices,
business and stocks are apt to do
bit considerably better in the rising
the period—not quite as well as in the

Itppear to have turned down a
phead of stocks emphasizes
llnerable, over-priced level
Ivhich

commodity

prices

loared.

to

have
»

Good

or

for goods is high. A general

bad times for all busi-

and

lesses

price stability period—but not too
badly. Prices rise partly because
the public has money and the de-

stocks,

to

large

a

Jxtent, are tied in with and dependent
upon
changes
in
the
rommodity price structure.
For

iep!jnS J* prosperity prevails, and
w^}e the prices are rising,

companies enjoy extra inventory prof-

1|:s* Butln every rising price cycle,

ome types of companies the trend
there comes a time when the m}f prices is of paramount impor- creased costs cannot be passed on
lance. On the raw material side, to the consumer. Rising prices in-

lopper

and

panies,

oils,

other

variably lead to the point where
the public can t afford to buy as
muc>h .as before, and then consumption falls off. In that way

mining comrubber and lumber
(ompanies are strongly affected.
dl along the line, semi-finished
processors, such as steel com-

rising prices, when not supported

panies, textiles, construction compan ies,
agricultural
equipment,

P*y or acute shortages of goods,

automotive
companies, and
food
are also extremely dependent on price trends, and, at
Ihe consumer level, retail stores,

tend to choke off consumption,
thereby sowing the seeds of uni¬
r^ate decline. Under certain conditions, as ini the past year or two,
the time when the consumption

by sharply increasing money

(lectrical equipment,

Accessory
processors

)utomobile

manufacturers

Peak

and

few companies listed

Stock

on

passed

and

prices

turn

downward can be postponed but
averted, by (1) liberal crodit
terms, (2) war threats, (3) defense
spending, and (4) other purchasepromoting, price-propping stimu-

balers,food chains, beverage companies, real estate dealers, radio
fnd television dealers, etc., will
prosper or suffer, depending on
/hich way prices are moving. Just
fork

is

sup-

lants.

the New

Exchange selected at

Another reason a rising price
period is better for business than
lodity price changes are: Ameri- a falling period is that in a rising
[an Sugar Refining Co.; American period manufacturers, wholesalers,
foolen Co.; Armour & Co.; J. I. and
retailers, faced with higher
"ase; Colgate - Palmolive
Peet; raw material and labor costs, find
Jeneral Mills; Kennecott
Copper; it easier to pass these costs on to
lational Dairy Products; Schenley the
next
man
with
normal
)istillers; Standard Oil of N. J.; percentage profit margins added.
T. S. Rubber, and U. S. Steel.
Consequently, actual dollar prof¬

[andom for vulnerability to

com-

-

its go

tapidly Moving Commodity Prices
—Up or Down—Are Less Favorable to Business

or

Stocks

facturer

Than Price Stability
It stands to
on

a more

ieel

when

reason

And when prices level off

at the top,

first

it is seldom the

or

starts

wholesaler

the
to

manu-

who

reduce

prices.
In
this situation, the consumer calls
the turns—usually involuntarily,
When he is so bought up or finan-

that business

even, more profitable
the
background
of

his

cause

wares are

commodity price levels, and (2)
there is a pronounced positive correlation
between
stock
market

moving slowly,

Administration realizing how hard
it would be to
keep prices up all
the way to election would
probably rather see a moderate slump

yields and commodity prices.
In
simpler layman's language, this take
place in the January to June
wholesaler, who, in turn, has means that, when commodity
period, then give the faltering
to lower prices to move merchanprices are low, stocks tend to sell
economy a few remaining pricedise.
Finally, the manufacturer at high prices based on
earnings, propping shots to bring about a
lowers his prices — generally be- and
yields tend to be low. But summer
recovery and try to ride
fore his labor costs and material when
commodity prices are way back in on the
theory that the
costs decline.
Thus, all along the up in the skies, as after the Civil
slump was temporary and had
line, profit margins are squeezed War,
in
1919-20,
after
World been
successfully weathered The
or
eliminated, and lower profits, War I, and now, high earnings are
Republicans, if they are to take
or losses,
begin to replace earn- viewed in the market place to be over
the reins, would also prefer
ings. This backfiring of merchan- transient,
price - earnings ratios to see some
weakness develop bedise, once it starts, can snow-ball tend to be low even at market
fore election so that blame can be
swiftly. For as soon as the people tops, and yields, based on diviplaced where it belongs on the
who can't afford to buy at
high dends paid out of earnings which distortions
created
by the free
prices anyway, get the idea prices are bloated
by commodity price spending Fair Deal regime. Neither
are going to be
lower, they pull in rises, tend to be high even at marparty will care much about what
their purchasing horns
altogether, ket tops. In Table III below, it
happens in the November, 1952 to
and
then prices really crumble, will be seen
that low price-earnJanuary, 1953 period after the
Inventory losses mount up faster ings ratios in
1919-20, and high election is over and before the
than inventory gains did on the
yields at the same time, did not new Administration can
get itsr
way up, and since volume of sales mean stocks were
cheap. In fact, program into full swing
Thereis falling off at the same time, as
commodity prices fell back to fore, logically, a slump in the first
business profits don't decline just more normal
levels, stocks quickly and early second quarters, a
par~
a little, they tend to
disappear, and forfeited about 30% in value. Ac- tial
recovery into the third quarin many instances substantial net
cording to all indications, condi- ter, and a
deeper slump in the
losses occur. A surprisingly large tions in
the
commodity market fourth quarter would be a
pretty
number of citizens can't remember and in
the stock market are alarmgood guess.
The heavy tax paywhat a real bear market is like,
ingly similar right now. This is ments in the next few
months,
Just as a whole new generation
clearly a time to reduce business causing lower consumer
purchashas
grown up without knowing risks, sell
stocks, pay off debts, ing power, and a
deflationary govwhat it's like to have anyone but and hold on
to cash for the bar- ernment
operating surplus could
a
New Deal
Democrat1 in the gains which lie ahead.
be the extra factor to
bring about
White House, so the majority of
the near-term drop. A belated sucmvestors haVe forgotten the havoc But What About the Huge Defense
cess
jn
^he
protracted
Korean
the inventory declines of 1937 and
Spending Program?
peace parleys could also cause a
the depression trends of 1929-32
For several reasons the current
temporary let down. Commodities
created. In those sad days profits defense
program, in spite of its and stocks,
both, have ended 1952
were
replaced by deficits so fast size, is not very inflationary. For on a
relatively weak recovery of
that investors were left gaping, one
thing, even at a $50-70 billion a previous warning-type drop. The
Dividends
were
reduced
and/or annual rate, which it
may reach commodity
markets, in my opinomitted, and the complacent sense for a short time at its
height, ion, may start dropping again any
of security which investors enjoy it
accounts for only about 15-20%
day, and the stock market, a»
most
he

cuts down

his

on

orders

from

the

time

the

of

gave

way

to

hardships and lost fortunes.

Such
conditions not only can happen in
America again, but the economic

maladjustments

which

lead

vicious devastating price
are

to

declines

present today.

Bill

monks
Thev

Arp

ill

0f

gross
national
other 80-85% of

goods: produced

available

consumption is

and

than

more

Cheau
of

Aren't

Earnings

Tnrnmp?
'

for

product.

enough

to

The

supply

needs—still with surpluses.

0nclly, all but
the program

Terms

nivifiP.iH

amount

of

by the Dow Jones 30 inindicates a drop to at
as 220, and possibly
low as 180, with an average

dustrials,
as

as

low

expectation of around 200 withiri
the coming 12 to 18 months,

is being financed by

increased taxes,
suPPosed

small

a

all

Sec-

measured

least

Conclusion

and the balance is

be met by

to

sale

of

Without

question,

the

rise

in

bonds to individuals. It is the sale prices of the past few years, in
banks, which by pres- stocks and commodities, and esent
flexible
laws
can
use
the pecially that segment of inflation
of bonds to

"even without inventory

up

gains.

tailer has to reduce prices and
accept lower profits, or losses, to
stay in business. Meanwhile, be-

2D

Dont

fool

yourself.

The argu-

ment

you
hear advanced on all
sides by those who believe stocks
should be bought, or at least held,

bonds

as

backing for loans, which caused by
No sale of bonds than basic

psychological

ts inflationary.
banks

is

reasons—must

rather
be

de-

flated,
But just as prices rosehigher than conditions justified,
the price pendulum generally
1942 and swings further than warranted ill

currently
contemruns something like this.
Stocks p]ated.
Furthermore, it took Fedare very
reasonably priced based eraj deficits of more than
$20 bilon their earnings.
As of Dec. 31, bon for two fiscal
years

1951,

the

price-earnings
ratio 1943
before
much
inflationary both directions. If the deflation—
average
stocks was price rise appeared in the World ary correction in
|uating rapidly. When business- ing from the retailer, then the rebusiness stocks
only 9.7. This
is much lower \yar II period.
In contrast, the and commodities had been perthan
TABLE I
price-earnings
ratios
at fiscal year ended June
30, 1950, mitted to take place in 1947-48-4D
other
market
tops
such
as, showed a surplus of $7 billion not or 1950—before the
Production Totals Are Enormous
public's war
1929,
1937,
and
1946.
Indeed, a deficit, and the deficit for the created needs had been
Product and Unit—
1929
1950
1951+
5-year total
fulfilled—
the present low prices of stocks current fiscal
1947-51
year is not expected we might have witnessed only a
Steel Ingots (100 net tons)
in terms of 1951 compare favor- to be much over
63,205
96,840
105.000
553,352
$5 billion and mild corrective recession.
Now,
Petroleum (million bbls.1,007
2,072
2,200
9,989
ably with past periods when stocks even the 1953 deficit projected in however, with the
Non-Farm Dwellings
supporting
(1000)
509
1,396
1,100
5.302
were on the bargain counter." And
the President's free-spending bud- props
Newsprint (1000 tons)
and cushions largely ex6,282
6.660
30,140
the other half of the fallacious arWhiskey (million gals.)
17,448
15,500
76,472
get, if not cut, will not exceed hausted, the slump can surprise
Automobiles
(1000)
5,358
7,987
6,900
21,232
gument goes "Look at the high $15 billion.
Finally, the defense every one (except those who have
Refrigerators (1000)
778
6,200
4.075
22,891
yields good stocks can provide. As program will eventually be com- been warned and who take heed
Washing Machines (1000)
956
4,212
3,533
16,663
of Dec. 27, 1951, the average inRanges
(1000)
153
1,830
1,400
6.596
pleted, at which time the let down in time) by its speed, its depth,
Home Freezers (1000)
come yield on
890
1,050
3,722
Dow Jones 30 in- will be terrific. As I see
it, the and its duration.
Vacuum
Cleaners
(1000)
1,253
3,500
2,865
16,217
dustrial leaders was 5.72%.
Al- current
defense
Radios
(1000)
program
will
4,438
9,750
7,975
56,065
Television Sets (1000)
though about 1 % lower than a hardly offset the indicated decline
'
Wall Street Cashiers
7,464
5,100
16,718
year ago, this is still a generous in consumer
spending, to say 110thtPartlv estimated.
Elect New Officers
return, is much higher than at ing of raising prices further,
Source: Standard & Poors—Electrical
Merchandising.
previous market tops (for instance
At the annual
meeting of The
1929, 1937, and 1946) and com- But Will the Government Let Cashiers
TABLE II
Association
of
Wall
pares
favorably
with, income
Prices Decline in an Election street, Inc., Raymond Brode of
Why Living Costs Are So Hard to Meet
yields at stock market low points..
Year?
The
National
City
Bank
was
Price*
Therefore; you should hold your.v My answers to the political as- elected
Commodity
Description
Unit 1939 Aver. Recent
Increase
president; John J. Boyen
good stocks for income and appre- pects of the economic
Wheat
if2 Hard, Kansas City
Bu.
picture run of L. F. Rothschild & Co. was
$ .78
$2.52
223 %
Corn
if3 Yellow, Chicago
ciation; in fact, you might buy as follows: First of all, the gov- elected first vice
Bu.
.50
1.78
256%
Oats-i '
»
r;
president; and
if3 White, Chicago
Bu.
.33
.92
more." These arguments positively
179%
ernment, strong as it is, is not all Walter F. Sullivan of Fitzgerald
Rye
<<:■■>
'i
if2 Minneapolis
Bu.
.49
1.82
272%
do not hold water. It is well unFlour
Winter Straits KC
powerful. The underlying forces & Co. Inc. became second vice
100 lbs.
1.98
5.55
179%
Butter
derstood by deep students of eco92
Scored N.
Y
lb.
.26
.71
173%
working toward deflation, as meas- president. Howard W. Sumner of
Beef Steers
Chicago
nomic history that (1) there is a
100 lbs.
9.75
36.75
277%
ureci by bank-debit, bank-loan ra- Halsey, Stuart
Hogs
Av. all grades, Chicago
& Co. Inc., was
100 lbs.
6.57
20.09
206%
Lard
Ref. Chicago
pronounced inverse correlation belb.
.08
.21
162%
^os ., ancj other monetary yard- elected secretary and Sam Minsky
Fluid. Milk
Dealers' Standard
'
100 lbs.
2.17
5.30
144%
tween price - earnings ratios and
Cocoa
'
Accra. N. Y
lb.
.05
.32
540%
sticks, have proceeded far enough of Hardy & Co» treasurer. EdCoffee

J>rices is

steady, rather than flue- cially strapped that he stops buy-

of

market

____

>

_

,

^

_

..

,

___

_

___

.

,

*

,,

•-

_

,/

v

;

.

Zinc

Pig Iron
Steel

'i

.545

.030

.059

97%

lb.

.110

.242

120%

lb.

.05

.19

280%

lb.

.051

.195

282%

Western, St. Louis___

Composite

:

Composite finished
Heavy melted. Pittsburgh.

■

Coal

>

Petroleum

Long ton 21.75

Bituminous

Crude.

Cotton
Print

.075

lb.

__

""

Steel Scrap

Raw

Lumber

-

wells

aver. 10

mkts.

127%

Corn

Women's Flannel

N." Y.-L/J.
Sheets, N.

yard
'

Y

grade

"Wholesale unless

lb.

pair

otherwise stated.




Short ton
lb.

100 lbs.

27.54
.123

line.

The

1.98

79.40

188%

ward H. Devlin of Green, Ellis 8s

Anderson, and Harold L. Cereghino

of

Yield

Low

1920

1920

$6.00

6.1%

73%

21.44

4.4

6.00

6.4%

59

36%

21.55

4.3

6.00

6.5%

41%

55%

Corp..

1920

__—

1.31

2.77

50.00

116.00

132%

age

Co.,

treasurer,

respectively.

-

MIAMI

15.20

4.6

7.00

9.9%

37%

47%

45%

5.44

8.4

3.00

6.6%

29

36%

15.40

6.1

8.75

9.2%

40%

57%

12.62+

7.1

6.07

6.74%

63.90

29%

70%

..

BEACH,

25%

Williston

York

&

Stock

Co.;

Fla.

—

Members

Exchange,

J.

R.

New

announce

the opening of a branch office at

trial Stock Aver¬

201%

&

New Williston Branch

Decline

90.05

Rubber

102%
111%

Singer

1920-21

4.6

Earnings

94%

—_—

Texas
U.

Dividend

i

94%

Steel

Studebaker

Ratio

Troster,

made assistant secretary and

assistant

Stocks Fell Sharply

1920

973/4

Products

147%

.304

Ratios Were Low,

$21.40

Price

6/30/20
Locomotive

Republic
14 bd. ft.

it will not be

92

Stock

.830

,

on

the price

Price-Earnings

170%

if 2

_

to hold

.

Dividends Were High, But

lb.

Smoked

High

100%

2.57

territory 64s, 70s, Boston

Rolls.

_

160%

17.01

.95

Am.

Dress Goods

Gum

44.75

8.52

320%

Black; Calf.Oxford

easy

Back in 1920, Price-Earnings

78%

221%
50%

Newsprint
.

.0471

.42

Board

that from here

so

were

.078

Pine,

implied

147%

.151

Southern

or

TABLE IH

.10

lb.

_____

1st

intended

V

■

.052

64 x60

denier

is

UmTs6.6" Democratic Presidents and *ood

.047

150

Men's

Rubber

53.67

1 No association

yd.
lb.

inch

Steers Packer,'heavy native-

Shoes

-

bbl.

common

' ;

Hides

Rosm

Long ton 17.21
Short ton

at

.0264

627%

quality

18V2
Yarn

Wool

lb.

Retail

Kansas-Okla

Middling,15/16

Cloth

Rayon

'.«■

lb.

Prime

Lead

TT

Santos #4, N. Y
Raw. Wholesale, N. Y
Electrolytic, N. Y

Pig Desilverized, N. Y._

Sugar
Copper

4.02

.176

2.23

8.11

.529

S.

Dow

411

Indus¬

Jones

_____

307%

9.07

tExcluding American Sugar and Central Leather which had heavy inventory
;

i,.\ }J

'y%

losses

and

ran

deficits

in

1920.

Seventy-first Street under the

management of Richard R. Whiter

Mr.

White

was

previously

Blair F. Claybaugh & Co,'

with

30

The Commercial and Financial Chronicle

(394)

served

ent

BRANCHES

REVISED

Directors

of

tional

He was Superintend-

from

1929

1934.

$1

Mr.

shareholders

entering its 104th

distinction

member of

of

on

has
the first

year,

being

the

thef staff to be In 1922
elected

Louis

appointment as
of
Ellsworth

been

Bissell,

with

the

C

Swart,

and Donald A.
Second Vice-Presi-

H. Schwoon,

Stoddard,

as

dents; Gregory Korte as Assistant
Trust Officer; Thomas J Crean as
Assistant Auditor; and Charles C.
J.

Smeal

P.

Frank

and

Assistant

as

York

J.

Edward

Bray

Vice-President to

announced

York

piomotion

from

New

of

the

15

Jan.

on

Assistant

frnm

Secre-

Assistant

^ecre

^

r

tified

Treasurer

us annual meeting 01 siock
meeting

V

neia

on

has a total
its official staff.

America
a

B.

Chairman of the Board of Trustees and re-elected President of

Chairman ot the Board, the office
wnicn

he

ne

has

nas

held

since

neia

1949

si ice

y u.

it™

*

three°yea?s
tnree years.

or
meeting

.

Vice-President

in

^argr? °f 'he Brooklyn office of
Bank

Trust

? years of age, was gradu^ted from Williams College in

wason» 1888

Also

and was associated early in

aFthe }lfe Tith ore mimng Sherman of
at tne Co iron Witherbee, concern &

Also
William J. Wason, Jr.,
announced
his
resignation
as

York at the annual meeting on
Jan. 14. Henry Biuere resigned as
which

Hoi-

Jr

^

Silas

H

witherbee.

The

-

which

were

meeting

of

the

RoarH

of

"For ten years he served

>

as

its

nerind

during which

Le-

made General Superintendent of

eral Manager of the company's
electric operating department. In
1948 h* became Vice-President in
charge of electric operation and
two years later was promoted to
bis present position.
On Jan. 15 Richard Whitenack
appointed Assistant Treasurer
D. Carpenter was ap-

pointed Assistant Trust Officer at
the

annual

organization

0f the directors
Trust

Mr

Carnenter

of the

he

Whitenack

has

teller' since 1948.
became

n" mh

associated

investment

Assistent

as

Vice-President

thp

to

Mr

bank in 1927

been head note
wHh

meeting

of The Plainfield

Company

who joined the

charge

in

division

of the

trust department. Prior to World
War n he Was with the Central
Hanover

Bank

&

Co

Trust

(now

The Hanover Bank), New York
'r; %

citv

'
At

*

the

*

,

a

organization

thfBoard ol

"Eag!e" added in part:
Ice> ihe last i» or wmcn were
served as President of the bank.

of

electric generation and later Gen-

porf- Henry, founded by his grandfather

meeting of the

graduate

was

org^.za- Br0oklyn of New of Jan. In10 the
Company
York.
Jan. 1%
"Eagle
it

iKcger? A. Drysd^e, jr^Hol

ils 1S"* i
elected

Schwulst was

Drysdale

A

hi£h University, Mr. Luce started
®
p
...
s '
.
.
,

cer-

stated that Mr. Francis, who
Robert A

Plain-

field Trust Company of Plainfield

and Donald

Exchange

the

to

Pany's electric operating depart-

public accountant.

^orn

elected

was

of Directors of The

Board

ment in 1924 as a cadet engineer,
After various assignments he was

National

and

Service

Isoe

elected

of

Reform,

and-

Public

Vice-

of

b

Institute

ciety,

hoUer.and ther, at .ts

companies,

of

N. J., at the annual

h

Tax

Luce, Vice-President

of combined operations

director

a

stockholders.

"Lafayette

of

troller's

Federal

^

^

At its annual meeting o£ stock-

now

The Bowery Savings Bank of New

President of

Company

Trust

Empire

nrnmAtinn

been

have

"

Earl

*

C. Brunie,

Henry

Trust

of ten women on

Secretaries of the company.
*

office

main

tacturers

pointment of Arthur J. Crinimins
and Herbert C. Young as Assistant
*

the

the ap-

of

were ap-

named Assistant Managers. Manu-

Anmade

been

Trust

Irving

the

by

also

has

nouncement

of

Divi-

sion at 100 East 42nd Street.

31.

dividend
compared

director

.

to

com-

Finance

Consumer

pany's

the

with

associated

is

He

and Timothy A. Murphy

Assistant Secretary.
At the
same
time
Mjsses M^a,ret Efrom Assistant O Donnell of the Fourth Avenue
Vice-President, office and Madeline Mieschberger

Company of New
announces the promotion of

Irving Trust

Jan.

to

in 1934. Mr. Maher had previously
*
*
*•
served as Assistant Secretary and
The death occurred on Jan. 9
with the bank since 1937, has been Mr. Murphy was Supervisor of the
-Lewis W. Francis, President of
promoted from Assistant Manager Mortgage Department.
.*?■ the- Long Island Historical So-

*

*

basis,

-pimblin

ones. Mrs. Ann Henry Fallon of
the main office, who has been

Treasurers.
*

the

°Joseph ^A Igo?

'05'" directors'

Manufacturers Trust Co. has pointed Assistant Vice-President
advanced one of its worn no- ancj Assistant Secretary respecficers in rank and added two new tively. Both men joined the bank

E. Bensel, Paul
Charles G. Schmidt,

O'Neill,

Administration.

ness

William

Adams,

^^oveTs' denran^Vke-pfe^denl''6
Employees
a d Vice President.

C.

Electric & Gas Co. and subsidiary

15

and will assist the
Bank, according to an announcePension Committee in the admin*
*
*
ment by Walter Jeffreys Carlin
istration of the bank's pension
At the January meeting of the prpcident of the bank
Mr
Timfund. Mr. Scharps is a graduate Board of Trustees of the Fulton blin is a member of the Drug &
of Princeton University and the Savings Bank of Kings County, chemist Club National AssociaHarvard Graduate School of Busi- Brooklyn, N. Y., James G. Maher tion of cost Accountants Corrm-

Department and Philip
Foreign
Department.
Other promotions announced are
those of Carl V. E. Brandebury,

Banking

John

Securities

Donald
in charge

Feb.

/J??Dun»-treasurer

and

Thursday, January 24, 1952

.

and

#

»L-

appointed

NaNew

1951.

M

^oais

in

.

dividend of

a

record

places

annual

Andrew K. Scharps has
a Vice-President

that

14

Jan. 17

on

dents

F.

$2

a

Mr Nodyne joined the staff as a^ and
bookkeeper. His appointments fol- Pre'gident
Vice-Presi- of the bank. He will be connected J?wed as Chief Clerk Assistant
th
of

Company

Trust

announced

York

action

#

to the office of President.

Guaranty

of

with $1.25 in

now

Lafayette

Brooklyn

payable

is

CAPITALIZATIONS

New

share,

a

This

the

the

of

York have declared

State of New
to

of

Bank

Nodyne, the 10th President of the
East River Savings Bank, which

Bankers

and

NEW OFFICERS. ETC.

the

of

Commerce

of Banks of the

York

CONSOLIDATIONS

of

Bank

Nevy York.

News About Banks
NEW

Vice-Presideht

as

National

.

meeting

Dheemrs

of

of

ind^s-

trial Trust Company of Philadelnhia

S

Flmer

Carll

was

elected

rresiaenr, auring wmcn perioa ne

pnia, Jiimer a. uam \vas elected

the American In-

President and Frank S. Lynn was

active

was

in

tarJ ° Assistant Vice-President Provismns have been mad
ol Wilham J.

to ap- Trusteeg Mr wason was elected stitute of Mining Engineers and elected Executive Vice-President.
o
y
~
t
tl
newly-created position of-^be Iron and Steel Institute.
He J. Edw. Schneider, who has been
Mr. Schwulst jo lfie newiy createa position orthe Corn Fvohanpp
associated with the trust comnanv
t
came
to
The
Bowerv
as
First Chairman ot the Board.
Chester naa Deen wiin tne^orn r^xcnange associated witn tne trust company
P. ciphii'mncher
Schumacner, and JacK ivi. jii
ana Tack M El- -came
to
ine
150
y
a
s
Aiien
was
elected
President
Bank slnce 1927 and was named tor more than 52 .years and its
1-4
mi
S
Auditor to Vice-Pi (gident
^
^ in charge of the Trust Vice-President in 1937. From 1919 President since 1927, was elected
Auditor; also the appointment to elected Piesudent m 1949.
He is
D
t
t
will
be
taken
bv to 1948 he was a director of the
Chairman of the Board. Caspar
Assistant Vice-President of NorPiesident ot the Savings Banks uepaitment
will
he
taken Dy
,

Anderson, George F.

Gorman, Earle Marshall and Alan

point Mr. Biuere
man of the Boaid.

a

T ovctt

F

man

^ec^eSrv
.

of

and

Assistant

to

Anthony

A

be? Alan T Dimelow William
McElne^and Lincon Paige.
McElnea and Lincoln Paige

H
:,

_

..

i

Farmers

York

held-on

Jan.

Co.

Trust

McGlvnn

..

.

^Committee '"of

Executive
Bank

of

City'
New

Frank

15

A.

annointed Assistant

was

Secretary.
*

*

G

Herbert

elected
the

*

has

Zilliakus

been

Assistant Secretary of

an

Association

of

the

State

of

New

York and a director of the Savings Banks Trust Company and

Berna-

Sftitutional Securiti^Corpora(ion

ther cun.ent

Am

ties

aPivi.

he is President of The Greater

T

.

Wharton

Iron

and

Stpel

was elected a i,dyior
wnarion lion ana &teei
Vice-President in December. Company.
;
>
Leonard D. O'Brien was elected
"Since 1921 Mr. Francis had
a Vice-President and re-elected been a trustee of the Brooklyn
as
Secretary, • to serve : in both Savings Bank, and had served
capacities.
*
also as a member of its Executive

George Gray, who

New York Fund a director of the
Throughout Mr. Wason's PresiRegional Plan Association and a dency he has continuously rentrustee of the Teachers Insurance dered full-time devotion and at-

Committee."^

Dnicding

was

Chair

vice-cnair-

Mr. Carll was formerly
Vice-President and director of
Frankford Trust Company, also of
Philadelphia having been assdciated Wlth that institution since
Presidmt and

^

Vice

made

urueamg was made

man

"directoi^of ^ndut

trial Trust since 1948
.

John W. Hooper, President of

t

v

^

and
Annuity
Association.
Mr. tendance at the bank, and has the
Lincoln Savings Bank of
Schwulst is a past President of continually promoted its prestige Brooklyn, N. Y., has announced
Announcement is made of the
the National Association of Mu- by participation in the manage- that at a meeting of the Board of dfeatb on Dec. 29 of Major Ralph
tual Savings Banks.
ment of leading civic, charitable, Trustees, held in December, the A. Gregory,
Chairman of . the
,

'On Jan. 16 the Board of Trus- financial and industrial

corpora-

foUowjng ^promotions

were

ap-

I

New
Jan.

^

,

_

George H. Whiteside, Principal
Executive Assistant. Mr. Schmidt
was
promoted
from
Assistant
Treasurer.

Charles J. Kipp, Assistant VicePresident, and Edwin P. McGuirk,
Assistant Cashier. In addition to
other assignments, Mr. Heinrich
and Mr. Fox will continue as
Managers of the Bay Ridge and
Brighton Beach offices, respectively. Raymond I. Bundrick will

Following the action taken on
Jan. 2 by the directors of the
Calvert Bank and the Fidelity
Trust Company, both of Balti-

motion and community relations, be in .charge of the main office
Mr* Allen, who succeeds Mr. depositors' department.
Wason as President of the comThe "25 Year Club" of thePany» served with counsel for the.Wficokr Savings Bank announces

on Jan, 29 to act on the proposal.
If approved, the merger would be
effected under the name of the

trust company as a Certified Pub- as follows its new officers for the
lic Accountant. Later, and in 1925, current year: Honorary President
h^.joined the office of counsel, Frederick Gretsch, Chairman of
^ c
was ^en.
U1111 of the Board; President, Fred HonarpweJ Brower & Brower. He old; Vice-President, Charles J,

the proposal, J. S. Armstrong, Financial- Editor of the Baltimore

profits and surplus have greatly
increased, and the regular anDime in 1916 as a new account
nual dividend has always been
clerk.
He later became Auditor
continued at $80 per share.
As
and then supervisor on the bankr*
*
*
Chairman of the Board, Mr.
ing. floor. He is a past President
Thomas Riggs Cox, President of Wason
will continue his long
of the bank's 25-Year Club.
the Broadway Savings Bank of services
to
the
trust
com*
*
*
New
York, has
announced the PanY in the field of advice-, prodent

the

of

bank.

Zilliakus

Mr.

became associated with the Union

Frederick
arrt

B

Haggerty

Vice-President

of

Assist-

the

Corn

Exchange Bank Trust Company of
has

been

Vice-President

the

New Ycwrk

promoted t»
bank

an-

election of Walter P. Lantz, Executive Assistant to the President
of the Products Division of Bristol-Myers Company, to the Board
of Trustees of the bank.

'

nounces.

*
*>

*

*

*

*

At the^annuat meeting of stockholders of Savings. Banks Trust

Joseph A. Broderick, President
of the East River Savings Bank
of New York, was elected Chair-

Company

man

of New York, held

on.

Jan.

16, Robert A. Barnet, President of Irving Savings Bank, and

the Board

of

the

annual

He

was

of Trustees

meeting
succeeded

on
as

at

Jan. 10.
President

Harry F.
Newburgh

Smith,
President of and Chief Executive Officer by
Savings Bank, were George O. Nodyne, a member of
elected directors.
The following the. Board of
Trustees, and Execre-elected directors: Robert

were

M.

Catharine,

member

of

the

utive Vice-President.

erjck,

elected

Mr.

President

syre bsl? a-cskix01 p
Vice
President
Long Island
of

-

^

City Savings Bank; August Ihlefeld, President of! Savings Banks

c.,

from

time of his election

Oct.

1,

1936," to
as

Presi-

Mr. Brod-

2TjEComDa^vlnd^orton tIusI
Savings Bank Trust

Com-

.Secretary-Treasurer,

and

recommending a
the two institutions,
meetings of the stockholders of

the two institutions will he held

Fidelity Trust Co. Reporting oh

'"Sun," had the following to say

*n the Jan. 3 issue of the "'Sun":
"Thomas G. Young, President of
the

Calvert

Bank,

is

to

become

^mPany lr) 1931, becoming Vice- Alfred A. Hoeroher. The Cliib has Chairman of the Board : of the

freside.nt m 1933;..and a trustee 45 members, which includes nine Fidelity Trust Comp.any, a new^y
V1
1940. Mr. Allen is Presi- who are now retired.
^ created position, and W. Bladen
,

denJ *t:'.''Uprpojate^Fiduciaries Ase^,
or.^ ClJ;y' a >he
f.1?
Executive Comr shareh
^ ?
ft® Kings County Bank- * R <
,.

>."

^

annual
id

f

f Th

T

:

mp«ting

VirJ!
^

r

nf

^
T

.

thP

H

.

•

—>« sssst

^~ngvk.?ggj3 vz»'

February,

dent of the East River.

Brod-

emered the service of the trust Kipp

more, Md„
merger of

company, will succeed to ln growth and profits.
All the
^l4r*
Allen's responsibilities
in former directors were re-elected
charge of the. Trust Department, with the exception of Ellis L

trust

^ J'

Lowndes is to continue as "President of the Fidelity. Under the
terms of the merger agreement,

Calvert Bank's stockholders will

«•

- -»■»*» -

Calvert common stock ($o0 par).
The Calvert Bank was
rated in

1900 with

a

incorpo-

capital of

35 Spray' ^o, because of business $100,000 and paid-in surplus of

pany of New York for 14* years. ^lce~President'
responsible for reasons, desired-to withdraw from $20,000, William C. Page was the
oi successively as Clerk, Auditor and °Per3tions of the Banking Depart- the Board. In his place William T." first President, and James H.
ii Assistant Secretary, He was Bank mentl Leonard D. O'Brien was Golden was elected a member of Preston the initial Vice-President
° Examiner- of" the State of. New elected as a Vice-President and the Board. He has also been a and GenerM Counsel.

Company;-

George

M.

Penney,

President

Hnra^RppH prp!;!!!!f
Savings Bank.
Horace

Svod ^CMef Exlminer-of ^he re"elected

as Secretary, to serve director of Woodward Iron Com-

President Federal Reserve Board from 1914 in ^otIi capacities.
of Manufacturers Trust Company
to
1918, and as Secretary from Schaefer serves as
•f New York, announced on Jan. 1918 to 1919. From 1919 to 1928
he for the trust
C.

Flanigan,




Harold

W.

pany

of Birmingham, Ala., since

Comptroller 1937 and

company.

serves

on

other corporations.

the boards of

"At

the'close of

1951 the Cal-

vert Bank has outstanding 12,009
shares

of

common

stock.

Its

capital and surplus amounted to

Number 5084

Volume 175

deposits

$1,700,000 and
$30,109,891.
"The

.

its

J

Company

Trust

1904

the

it

charter

a

nation

Maryland.

of

Company

Deposit

contribute

been

have

I

Now

largest

the

From

exploring

this

question—and you no¬
outstanding ideas with
in terms tice I have only been asking ques¬
you — not
49,250 shares of common stock,
only for the chemist or the food tions lately—is a real opportunity
and its capital assets were in ex¬
technologist or the toxicologist or as well as a challenge of leader¬
cess of $3,000,000.
Deposits of the the
lawyer, but rather in terms ship.
Fidelity Trust Company at the
for all of us, I think, as citizens.
And I am sure that a meeting
end of 1951 exceeded $76,000,000
And, of course, it will be all of
like this one today is most im¬
and its total resources were more

Trust

had

Company

plus

us

than

and

Charles

at

office

Streets."

I

of BaLi-

First National Bank

Md., following 33 years as a
banker. He will continue to serve

more,

as

election
of Charles F. Reese as Vice-President and Cashier and H. Graham
Wood as Vice-President and Trust
announced the

bank

the

J. Mil-

Jesse Umberger,

Officer.

Brown, Andrew T. Reiter 3d,

ton

and

Courtenay Whedbee were

X.

agricuitural and industrial

progress—as

aY-'-'Y' ■*:C. suits

*■■■>, % *

"Y *

is

It

exert.

will

also

from

in

other fields—re-

research

programs,

development programs, production
programs and also a sober evaluation of the chances of making an
Williamsburg, Va., has been elect- honest return on each and every
ed an Assistant Vice-President ofVdollar
invested.
In all of this
The Bank of Virginia with assign- there
are risks at every point,
Ray E. Caudle, formerly Secre-

tary and Treasurer of the Peninsula Bank and Trust Company of

with

faced

the

The

strenuous

the

and

er's

work

of

being

can

bank's

v.

mond.
*

But so far the rewards have

Rich-

South

known?

,

*

*

of

the, question

also

is

There

say

the

about

the

world,

Directors of The, responsibility to the public welIndiana National Bank of Indian- fare which has been brought into

be

apolis, Ind., announced on Jan. 8
tne election of Russell L.
White

ideals

Board of

The

a

liam

P.

Flynn

Mothershead

Wilson

as

Vice-President.
*

Sometimes
related

Howard
A.

v

resulting from the improper use

Baer, President of of chemicals in foods. This is, in
Company" (surgical effect, an indictment of a lot of

F.

Aloe

S.

'

*

people, including particularly
and chemical
of- First
National
Bank
in St. industries as well as certain govLouis at the- bank's annual meet- ernment agencies.
How much of
ing of stockholders on Jan. 8. Mr. the real story of their responsiBaer has been a civic and busi-r-bility over many years has been
ness leader in St. Louis for many* told where it should be?
company),

supply

elected

was

member of the Board

a

of Directors' members of the food

He is Vice-Chairman of the
Board of Directors of the St. Louis?,

years.

-

Chamber of Commerce and a di-Y

•

■<>

•

t..

,

Don * Lq0k }° Government
Agency for Remedy

■'/

prospect it is almost im¬
possible to create a desire for your
product.
'

|4

if

would

of his address.
tangents were
main subject but

the

to

waited

you

the

to

the

acted

listeners

Other

next.

have

which

we

many

must live up

to

remain
leadership in the
is

democracy

our

same

to

Our survival depends
maintaining the freedom and
dignity of the individual.
These
must
be
never-changing stand¬
majority.
upon

u

ij ij

u

l

Of-any

n

lNow Harold H. Helme Co.

-

OMAHA, Neb—The investment7
,,

conducted

formerly

business

tt

tt

j-

i

Harold* H. Helme from

•**>

by
■

offices in

obvious

those who

are

was

a

be

profes s i o n
when H. Hiter

problems with

half

about

mile

a

then

and

the

road, it's the
Of

make head

course,

one

turn

you

the fellow who gave you
dle

it

sees

in

all

can',

the mud¬

mind's

his

eye

he assumes you
mental picture be¬

that

clearly

so

have the

in, the

tail out of that, but

or

same

fore you.

•/.

When you

Various agencies of

the Federal

Government do have jurisdiction,
we

^now> jn vast areas where the
of
chemicals
might
affect

many

be conducted un-

will henceforth

firm

the

der

Building,

name

of Harold H.

Helme & Co.

Now

LOS

Bingham*

0

c.

■

Spring- St .e

Inc.

'

You in those industries so
of experience
these agencies.
You should

those best qualified to
judge the adequacy of present
laws to protect the public inter¬
est." How much have you thought
this one out in view of your knowlamong

'Calif.-—Bing- edge' of technological changes
Hurry, 621. South Past-\ Present and contemplated?

ANGELES,

ham, Walter &

ness as

a

be

Walter & Hurry, Inc.
.

affected have years

foods.

.

The' extent of government

.

^trol

oyef

1

chemicals in foods is an

'-yr^^Yat trie outset Y Not. only




may

long

way

to make men's hearts

strong as their

even

or

by

an

expression on

this

Effectively

Used

Can

closing,

intellect.

may

I

Diversion

point. But it should be used
sparingly, and
only when you

ing

a

leave your listner up
air. For example, when you

ourposely
in the

almost

finish

a

subject and then

repeat

growth of the best in our way
living. vY "*'•

the
of

days,"
A

this

m e r

i

a

c

n

his

started

banking

ca¬

in the old

reer

Merchants
H. Hiter Harris

N

t i

a

o

n

a

1

Bank of Rich¬

clerk, sans "pull,"
education, sans re¬
but he had a will to work

mond, Va.,
sans

sources,
a

as a

college

little longer, harder and better
the next fellow.
This coun¬

than

boy, who came from Louisa
County, Va., rose by merit in
slow degrees to Auditor, Assistant
try

Cashier, and

Cashier,

when

and

the Merchants National Bank

with the

con¬

First National

to

come

your

that

back and finish up.

Make

diversion just long enough to

cause

some

you

ing riis bank, and city, Mr. Harri:
director

in

Fredericksburg

Richmond.

&

a

the

Potomac RR.,
The Life Insurance Co. of Va., The
Virginia Fire & Marine Insurance
Co., Lawyers Title Insurance Co..
General
wealth

Baking

Natural

Co.,

Common¬

Gas

Corporation,
Tredegar Co. and Virginia-Caro¬

lina Chemical Corporation.

This Virginian gentleman was
throughout life a typical country
banker and his help and services
ixr

cought by his city,

state and church in various civic

capacities. It

was only a week or so
before his demise that Mr. Hams

expressed his views to this paper

regarding the business outlook for
1952. His mature and hopeful ap¬

proximation of prospective condi¬
tions appeared on page 52 of the
Jan.

17 issue of "The

Chronicle."

Retain Interest

that .explain, "I want to come back to
the giving of your prestige is not this
point; but before I do I would
enough.
We must, by our posi¬ like to take just a moment to tell
tive actidn, meet the challenge of
you
etc." This will leave your
leadership.
We
must
let
all listener in suspense. He wants you
In

people know we are interested in
them and in what they think and
conthat we are indeed interested in

Bingham,; Walter & Hurry,* important question as I have said
-

as

his

was

King
Solomon:
There is one time that the use
getting, get under¬ of a
diversionary approach to a
standing."
If you are able to get
topic, or sub-topic, can create in¬
understanding of those who are terest and assist
you in emphasiz¬
dependent on you in your home,
your club, your business and your
community, then you have gone

use

forgot
"ashheap

ing to understand your explana¬

cen¬

with

the First National Bank

who

vidualist
never

President,
attaining
the
Presi¬
dency of his bank in 1939. Serv¬

by

ago

A

indi¬

start a sentence your Bank in 1926 he was successively
to hear it end. Assistant Vice-President and Vice-

all thy

"With

on

1 3.

When you raise a question he re¬
quires the answer. When you re¬
late facts to someone who is try¬

We all have a common purpose,

expressed

of 58,

a n.

desires

listener

tion, your listener's mind is natu¬
rally following along. It will not
world with pride and confidence. be
possible
for
him to jump
They must be evident not only in around as you skip from place to
the conduct of our foreign affairs, place, without causing a lack ol
but in all phases of our conduct interest, and finally you will lose
your audience entirely. Attention
within our borders.
We
have
the attributes with can be achieved by stating a fact

purpose

the

J

solidated

They are standards we can
and must continue to show to the

a

at

age

go

you

right* then it is somewhere neai
old
man
Hasting's place, you'l
see

his

home

logical.

you

ex¬

at

rugged

ards.

turies

does include government?

Harris

pired

build up to a

the road over there,

the

was

of

fatal mistake.

wishes to

The mind
We

who

personification of the best in his

thinking along with

was

This

him.

—

concerned—and this

President

bank

a

re¬

Instead

way.

Richmond, Va., and the banking
of the country have lost

the . remedy from in- which to do the job. Within our
your face.
Attention can only be
Trust Company, etc. He was Gen- dustry's view? . Is it to pass the nation, within our social structure,
maintained for a short period of
eral Chairman of the Greater St. .whole thing to some government and within our industries we have
time at best. Gestures, raising and
Louis Community Chest campaign agency for remedy?
That might the potential to do things well and
the • voice, * choice
of
to do them right.
If we can live lowering
in
1948a During n World
War II get industry out of the headline
words, subject matter—all these
Mr. Baer served with the Surgeon- crossfire, but the price tag might up to the unique flavor of our
are important tools if you are lec¬
traditional ideals and the strength
General's office, U. S. Army, and-well be greater control than necof our dynamic resources—spir¬ turing to a group or talking with
was
discharged with the rank of essary with its resultant effect on
another person. If you ramble and
Colonel, He now serves as a spe- initiative* on incentive.
Wouldn't itual, political and material—we you are not concise, despite all
can truly be the hope of the free
cial' consultant to the Surgeon it be better to get the record
the other props that you can use,
world as it faces the test of sur¬
General.-,'
'..YV-* v.x
; Y."
understood properly and work
attention will lag.
Y
affirmatively toward the solution vival.
M

'

r

world

along

audience

What is

Union

Louis

St.

the

rector -of.

■

Southern Banker, Dies

in a simple and
direct manner, with a well or¬
ganized presentation of his mate¬
rial, the speaker assumed that his
carrying

middle."

,

in "America

We

he

i'

•'

H. Hiter Harris, Prominent

these

in vain for the lec¬
turer to go back and clear up his
first point, before he went ahead

whose own sense of strong and our
Democracy
responsibility seems quite open to world is to prevail.
doubt_these writers indicate a depends upon self-disciplined will
of
the
individual
to
conform
wide variety of maladies may be
within a framework best for the

Executive

/ '

Y*

the

and

old fashioned victrola don't get

of your

into another phase

thing today

same

right.

bybnes and

President and

as

contro-

foods

in

Some writers—hitting

versy.

Board, Wil-

the

of

Chairman

as

chemicals

j-he

Ramble

topic, or a sub-topic, and begin
develop it.
Then when you
expecting the conclusion to
be reached he would go right off

the job of doing his part to

doubt

,

to whether or

ing, and DIRECT manner, will be
helpful in maintaining interest.
Without the undivided attention

to

jusmond office.
He began his new tified the gamble. There has been
duties Jan. 15.
Mr. Caudle is a incentive
enough
to keep the
native
of South
Richmond and wheels of progress well greased,
formerly with The Bank of Vir- But what would happen to future
ginia for eight years in Richmond, developments concerning our food
Petersourg ana JN'orloik. ne aiso supply if
this incentive should lection of individuals. If he were
served for three years with the diminish appreciably?
How much abroad in this age of universal
Federal Reserve Bank in Rich- of this whole story is generally quick communication, he would no
the

in

ment

and he
he lost

climax even in
our
learning and our memory
produce
sanity
and
goodwill.
process. We must not assume that
Every contribution—no matter by
others are thinking with us when
how few it is made or how small
we are
explaining even the most
it is—makes a positive addition to
elementary of matters. Did you
the general good.
Plato, in the ever ask a pedestrian in a strange
days of the oxcart, showed how a town for directions and receive
nation is nothing more than a col¬
this sort of an answer. "You take

from

as

canned sales talk is helpful

were

rightfully be excused

one

pleasant,
subject. Yet,

was

his

a

far with
this
procedure.
However* it is a fact that knowing
what you wish to say, and doing
so in the shortest, most interest¬

a

those

No

voice

Don't

build our
threatened.

is

of interest to the
the speak¬

was

an

I noticed that he would take up

of

civilization

there have been

very

control of his listeners.

went before us to

who

subject

knew

foundation

entire

tangible selling

audience—the pitch of

keeping civilization alive and pro¬
gressing.

For many years

arguments,
both
pro
and
con
among those who have studied in¬

in closing business. It is certainly
true that those who remind you of

necessary

challenge

great

a

be very

can

effective.

not

people in the lec¬
asleep, the audience
became restless, and you could al¬
most feel the agitation that filled
the room. The talk was timely—

am

0ur

named Assistant Cashiers.

If this is done well it

ture hall fell

in

portant

an

an average

first topic.

go back and finish your

three hundred

—

the same time

At

director.

a

a

mistake
enjoyable

one

most

been

inspiring talk, turned into
address. Although
I did not notice that any of the

positive that everyone that many others from your ranks
would like to have better quality be recruited for this job.
foods in greater abundance at
Whether it is the question of
lower price.
Say, that's a vote- chemicals in foods or the preser¬
getting slogan, isn't it?
Yet in vation of the free world
and
the kind of world in which we these can be related as are many
are presently living, this is likely
other problems to the larger ques¬
to come about in only one way—
tion—it is time
that people in
by increasing advances in our business
give more of their time
technological resolution.
But
and effort beyond the immediate
these advances just don't happen,
demands of their jobs.
as you are all so well aware,
Leaders of
a
free world
are

retired

has

Vice-Chairman of the Board of

as

the

as

more,

"Chemicals in Foods."

Prentis

M.

Morton

many

citizens, who will, or at least who

%

*

*

great

a

answer

been

just

obtaining an under¬
standing of these and many other
can, have
the final say on the
Lexington
questions as a basis for the leader¬
subject you are discussing today—
ship I hope each of you personally

$80,000,00u. it opera-es seven
in addition to its main

brancnes

attended

and educational. What could have

lives.

have

would

viewpoint, how is the public in¬
terest—the needs of each of us as
citizens—to be best served?
To

govern¬

control.

mental

31, the Fidelity

The other evening I

lecture, that for but

daily]

This is our

further

to

By JOHN DUTTON

portant step in this big question
of the place of government in our

All of us must

can.

as we

alternative

food supply with all
implies for. the free

wofld, but it can be another im¬

for enlightened,

cry

sighted leadership.

deposit business of the
old corporation.
safe

"As of last Dec.

times

our

.

this

that

aggressive, honest, moral and far-

Fidelity Trust Company and
continued the banking, trust

and

industries, our affect

our

the world.

or

The

to

issued

was

factories,

our

Securities Salesman's Corner

in Fiee World

U. S. Responsibilities

inception

changed to the Fidelity and

later

In

Continued, from page 12

,

'

in 1890 as the
Fidelity Loan and Trust Company
of Baltimore City. The name was
had

(395) 'j 31

The Commercial and Financial Chronicle

totaled

-

•

Fidelity

.

.

anxiety

won't come

in his mind

back—then

Sonnenberg Now With
Walston, Hoffman Co.
Walston, Hoffman
members of the New

&

Goodwin,

York Stock

Exchange and other leading stock
and
commodity exchanges, an¬
nounce

that

Hudson

B.

Sonnen¬

berg has become associated with
the

firm

in

its

Waldorf-Astoria.
three years, Mr.
been an account

office
For

at
the

The

past

Sonnenberg had
executive

with

Merrill

Lynch, Pierce, Fenner &
Beane, prior to which he had been
with Craigmyle, Pinney & Co. Mr.
Sonnenberg served with the U S.
Air

Force

during 1943 and

1944.

82

The Commercial and Financial Chronicle

(396)

Continued from

first

carded for

page

mitted

We See It

As

we so frequently and so
tinue to tread faithfully.

path

no more

smugly insist that

outspoken,

Chairman

Advisers.

It

of

the

is obvious

individuals

achieve

to

economic

we con¬

exponent

Council

of

All in all, it is probably in his extra-curricula utterances,

however, that we get the best glimpse of what Mr. Keyser¬
ling personally believes. It so happens that almost simul¬
taneously with the appearance of the Council's annual
report to the President this year, there appears in the
New York "Times" a rather revealing exposition by the
From this article

liberty of extracting the following passage:

from first

"We must in

"The

answers

we

seek, however,

are

not sought in a

vacuum; they are sought within the environment of our
general thinking. For economics to make its full contri¬
bution to the stability and clarity of purpose which the
world situation requires, three shifts of emphasis in eco¬
nomic thinking seem highly desirable.
"First, instead of preoccupation with a quick succes¬
sion of adjustments to meet every temporary nuance in
the very short-run economic outlook, we should try to
take a reasonably longer-range view and shape private
and public policy accordingly. Second, instead of assum¬
ing that our economic fate is determined largely by im¬
personal forces behaving willy-nilly, against which we
can only set up tardy and defensive counter-measures, we
should infuse economic thought and policy with a more
•

affirmative effort to achieve

positive results.. And third,

instead of

being satisfied to do well a variety of separate
and independent programs, we should try to look at these
andertakings in broader perspective, so as to examine
their consistency, weigh their relative priority, appraise
jhow many of them our total resources will support, and
bring them into a common focus which promotes popular
understanding and national unity."
It seems to us that we have here a set of poisonous
ideas expressed with a thin veneer of plausibility and of
common sense.
It is this manner of presentation, this
clever use of current confusion in Washington to bolster
thoroughly unsound ideas, that makes it all so damnably
dangerous. Not very many will realize, we are afraid,
that what we are being told by implication is that in order
to combat the advance of totalitarianism (particularly as
embodied in the Russian system of so-called communism)
we must ourselves
go part way, perhaps half way, perhaps
even more than half
way, over to this same totalitarianism.
Few may stop to consider that beneath the
cunningly
turned phrases, the President's chief economic adviser (or
co he is credited with
being) is assuming the desirability
of a fully planned and managed economy.
Yet that is precisely what he is
doing. Otherwise,
what he has to say makes no sense at all. He complains
snot that government is today
intermeddling with virtually
everything it can get its hands upon, assuming responsi¬
bility for the behavior of business enterprise, and making
decisions

which

the

business

should

and

indeed

must

make, but that it is doing a poor job of it. It does not look
enough ahead. It should not have hastily cooked up

Recent

brated,"

tions

of

part

penicillin produced seems fan¬
tastic; 1950 penicillin production
amounted
to
429,000 pounds;
streptomycin, including dihydrostreptomycin, climbed to 203,000
pounds. The figures for Chloro¬

that
at

advances

new

are being made
increasing rate.
A

ever

an

in 1947 revealed that ap¬
proximately 90% of the drugs in
survey

at that time

use

less than 20

were

with
*

affirmative effort to achieve possible results "
If these glowing phrases have
any meaning at all, this
lawyer turned economist (and we might add social and
a more

political philosopher) is saying that the American system
under which
we now

we

have grown to the preeminent
position
now be dis¬

hold in world economic affairs must




small

very

sweetness,

of

training,

used

to

ex¬

are ex¬

concentra¬

bit¬

sourness,

determine

different

After

these
the

a pe¬

men

are

acceptance

products

that

to

are

by mouth.

more

for

less

or

amazing
to

which

there

immediate
one

no

was

known

day while working in the lab¬

oratory, Sveda noticed the strange

of you

Some

how

drugs

new

Wonder just
discovered.

may
are

There is a principle
endipity which plays
in

making

called

ser¬

vital role
discoveries.
Ser¬

new

a

thesized.

Apparently, this
that

substance

had

the

gotten

onto

fingers, and from there, onto

his

cigarette.

During

the

fol¬

Sveda paid particu¬
lar attention to the synthesis of
cyclohexylsulfamates and to their
potential
value
as
sweetening
lowing

year,

illustrates this phenomenon. Ac¬
cording to Kettering, a gentleman
had

from

come

meeting

out of the

inside

Y.

a

M.

night, and

one

C.

A.

and
was

chemist for

research

a

the

of

du

Pont

there

learned

acids.

sulfamic

research

that

being carried out

pocket, took out his

lier

to

on

certain

He mentioned his

technical

the

his company.

a

Company

he got discovery that he had made

as

taxi, he reached in his

coat

became,
branch

ear¬

director

of

Then in order that

pocketbook, and paid the driver.

the discovery might be developed,

In

Dr. Sveda and Professor Audrieth

putting

it

back,

he

evidently

the

arsenic

years

cane—it

the
the

in

was

the fall

and the leaves

year

ground—and he
leaves

came

around

was

when

and said, "Did
something, my friend?"
up

He

said, "Yes, I lost

of

all

were

lose

you

just

However, this was
beginning. The role of

the

when

sumed

Director

pock¬

v

The fellow

inal discovery.

pushing Abbott Laboratories in the devel¬
a
man
opment of the sweetener was as¬

my

etbook."

the

over

>

said, "How did

you

of

President

Volwiler—then

Research
Abbott

of

became

—

Dr.

interested

and

now

syphilis.

on

for

the

Then in

penicillin,

came

reomycin and
A

classic

a

fol¬
as

drugs

Terramycin.

/

point

what

done

have

is
to

pneumonia.

these

Because of them, the victim of
pneumonia today has better than
25-to-l

a

chance

compared
3-to-l
told

with

medical

doctor
can't

of

little

recovery,

better

generation ago.

a

who

do

joke
tells

is

than

An oft-

about

the

his

patient, "I
for your cold,

anything

but if it develops into
I can cure you."

pneumonia,

World War II and Advances

in

Medicinal

'It has been

Chemistry

stated

by

number

a

of people that the development of

penicillin
possible

would

have

not

without

World

beem

War

II.

The

crying need, the intense ef¬
fort, vine
huge
expenditure . of
funds for research and plants to
develop a medicinal jthat origi-',
nally
occurred
in
insignificant
quantities, were factors that could

have

been powered only

by

war.

Robert Burlingham in "The Odys¬

of

sey

states

Modern

that

bad

of

Research"

precisely what

it was, but it is not

medicine.

years

Drug
is

war

Sherman said

Certainly

World. War

the

six

II

marked,
by far, the greatest medical prog¬
ress of any comparable
period in
history.
In fact, it can be said
atomic

a

work

Streptomycin, Chloromycetin, Au¬

that

filed
application for a
patent.
searching This patent was issued on March
around under the lamppost with 3, 1942—five years after the orig¬

Erlich's

lowed by other antibiotics such

pocketbook.

was

sulfas

reopened

compounds

treatment of
few

due

had

quiescent since

missed the pocket and he lost his

He

largely

drug discov¬
of the

'30s

re¬

and the

the
chemo-therapy, a sci¬
been particularly

of

that

ence

syn¬

was

is

new

middle

science

com¬

endipity is the ability to find agents.
Early in 1939 after re¬
something valuable when you are ceiving his doctor's degree, Sveda
looking for someting else. Charles
Kettering tells a story which well

the

of the sweetness to be sodium cy-

clohexylsulfamate, a new
pound which he had just

in

med¬

only

own

The discovery

ery.

However,

application.

speedup

advances

in

has

into its

come

that

earlier

chemistry

cently

academic problem

an

mentioned

icinal

discovery of the new sweetening
agent that you will find on your

his

old.

years

—

ferred

.

barring

another

war—the
on

erations

>

general,,

benefits

-

con-v

this and succeeding gen-/

by

the

World

War

If

medical

developments will out-:
the death and destruction-

weigh
the

of

itself.

war

The

prime in¬

stance is, of course, the penicillin

development.

This

accomplish¬
example of the value/

Laboratories

ment

in the

of American

com¬

pound for its use in diabetic diets.

is

an

ingenuity and of the
technique of American industrial

to lose it?"
Dr. Volwiler obtained samples for
"Well," he said, "I came from study and evaluation; then later,
a meeting at the Y. M. C. A. and
Abbott Laboratories was granted
1 paid the tax driver and
put my a license under the Audrieth-

production in being able to bring
penicillin manufacture to prac¬

hand

nent

come

back

missed

in

pocket

my

pocket

my

and

and

lost

my

pocketbook."
The

"I

other

asked, "Where
when you paid the taxi

you

man

Sveda

patent.

right down there under

was

His friend said,

looking
lamppost?"

you

pressure

duction.

"Well, why
here

under

are

its

studies,

answered, "Well,

the light is much better up here."

proved

The

It

so

of

war

begun.

man

tremely
Sucaryl

Story

done

research and pro¬

With the end of the hos¬

attention

carried

And the

was

again focused
the
sweetening

once
on

agent, and a long series of phar¬
macological experiments, clinical

this

up

Little

with the compound, however, un¬
til after the war because of the

tilities, Abbott

that tree."

plain and unescapable. It is almost stated in so many
words in the second suggestion of Mr.
Keyserling. "Infitead of assuming that our economic
fate is determined
largely hy impersonal forces behaPing willy-nilly, against
which we can only set up tardy
and-defensive countermeasures, we should infuse economic thought and
policy

of

riod

sweet
taste
on
his
cigarette.
mycetin, Aureomycin, and Terra- Curious to find out what had
mycin are, no doubt, equally im¬ caused it, he promptly tasted all
of the compounds on his labora¬
pressive.
In this field it is quite apparent tory bench and found the source

driver?"

inference—though the inference is

series of

a

terness, and saltiness.

Developments in
Medicinal Chemistry

of

better.
Inference Plain

of

up

to speak. They

so

accuracy,

the
business.
These groups serve close to 200,-; druggist's shelf under the name of
000 doctors and more than 50,000 Sucaryl. The Sucaryl story began
in the fall of 1937 when the initial
pharmacies.
The annual medical market has discovery was made by Michael
reached the amazing proportion of Sveda, a chemist working for his
$2 billion—which averages about doctor s degree under Processor
at
the
University
of
$14 per person. Antibiotics and Audrieth
Sveda was carrying out
the sulfas account for more than Illinois.
50% of the medicinal market in research on certain organic com¬
dollar sales. The actual quantity pounds of sulfamic acid.
It was
large

a

were

mere

more

This

page

nationally known and these 11 do

"emergency" policies, but carefully worked out five-year
plans, or perhaps 20-year plans to go the Kremlin one

This is not

of

perts in being able to detect, with

v

£ar

preparation

pharmaceuticals.

The Discovery of Sulfas

self-protection achieve enough stability

counteract the dangers of ex¬
In view of the long pull con¬
fronting us, we could not afford to be up in the air about
too many things. We must maintain a sense of direction,
however imperfect, and seek to clarify many issues even
if they cannot become crystal-clear.
/\ ■///■'-

on

perts whose taste has been "cali¬

I

-

of purpose and policy to
cessive uncertainty itself.

the

be taken

Continued

introduced

was

panel is made

of

take the

we

in

use

,

Chairman of the Council.

product

the market in 1950—13 years after
its discovery in the University ol

elegant

Keyserling is a clever man; he must be a power
before a jury, or would be if he were inclined to use his
talents in that way. Of course, he takes pains to deny, or
at least to appear to deny, any such ideas as we have
found in his words. But the fact remains these implica¬
tions are there if his words mean
anything.

the Council.

that he dominates

The

This development has one in¬
teresting corollary in connection
with a "taste panel" which we

Mr.

Economic

Thursday, January 24, 1952

.

Illinois laboratory.

must be coordinated and self-consistent.

or more suave,

President's

stimulated

and

during the past century and a half are less effec¬
tive than schemes devised by the politicians and their
advisers.
The third and last suggestion
merely insists
that a government undertaking to manage the economy

of most of the modern economic and social nonsense than
the

henceforth take
"impersonal forces" which have per¬

miracles

Exponent of Nonsense
There is

in which government must

one

the helm—since the

..

and other research was
These exhaustive tests
on

the

over

a

well

tolerated
It

Let

moment

a

dates

of

consider for

us

few of the perti¬
the penicillin his-»

a

tory.
It

Dr.

in

September, 1928, that
Fleming found the accidental
was

contamination
on

which

were

on

an

agar

staphylococcus

plate,/
germs

being grown, by

a greenish,
mold—belonging
to
family Renicillium—which de¬
stroyed all of the germs in its
vicinity.

brush-like
the

no

soon

tific and medical interest in Flem¬

with
was

just

From tne years 1928 to
1939,
there is almost a total blank from
the standpoint of general scien¬

period of years
to be ex¬

compound

harmful side effects.

tical fruition.

frequently

happens that realized, too, that; Sucaryl had
the usefulness of drugs is discov¬ outstanding.
advantages
in
the
ered by accident.
The penicillin way of no bitter after taste when
story of Fleming—the open win¬ used in the ordinary amounts.

ing's discovery.

dow

and

that

blew

World War II broke out, penicillin
seemed on the verge of oblivion.

the
in

greenish-blue
on

his

mold

uncovered

petri dish of bacteria—is

a

well-

known example.
A more recent
story is that connected with the

papers

Then

diabetic

sweet¬

team

process.

came

could

have

foods

during -the cooking

His

penicillin

reports
were

and

lost in

the shuffle of other papers at sci¬
entific meetings and by the time

Equally important was its stabil¬
ity in the presence of heat, mean¬
ing that for the first time the
ened

on

in
at

1939, Dr. Florey and his
Oxford

inspired

University
by

the

be¬

original

Number 5084

Volume 175

Fleming,

by

papers

tensive

to

later,

years

in

Dr.

1941,

solutions, namely dextrose,
accepted practice for

been

has

ley, journeyed from bombed Eng¬

many

to

list

American

the

the

for

of

adequate

officials

to

who

in
order
to
speed up this production.
The
next four
years
moved quickly
and, with them, came the work of
Dr. Robert Coghill and his asso¬
ciates at the U. S. Agriculture De¬
partment's Northern Regional Re¬
search Laboratory.
They made a
in

the

development of the deep vat fer¬
mentation

from

which

mold

new

a

penicillin

for

process

could

produce many times

the concen¬
penicillin
originally

of

tration

found by

Fleming. This discovery
groundwork for largeproduction and by June of

laid

the

scale

blood

the

be tol¬

The
ine
tisone

will

mended

intake

nish

supply
of

the

sufficient

effort had

out

all

this country.
cillin

in

started

Not only did peni¬
available

become

tion

the

enabled

pharmaceutical

the

adrpna

rated

from

chloride, included in the above
solutions, it is also possible to
supply intravenously to the pa¬

1942

tient

erals.

At

the

of

some

the

essential

min¬

time,

present

we

then, that we are in a
position to feed the patient pro¬
can

say,

would

that

amounts

and
the

deemed

be

adequate in most oral diets.
tant
is

fat.

Fat is regarded

impor¬

as

here, because of its high ca¬
density. This means that a

loric

given

of fat

weight

can

the

last

of

have not

we

antibiotics.

new

future of them is limited
the

world

unseen

seen

of

The

only by

plant

and

other

nutrients mentioned

would

it

toward
escent

the

entire caloric needs of the

main

tive

be

to

re¬

brought under effec¬
We

control.

many

still

antibiotics

new

not

may

of

see

the

so-

called broad spectrum

type, which
by Penicillin, Aure-

typified

are

liter

One

would

of

15%

patient.

provide .1,500 calories and
equal in caloric value to
10% dextrose solu¬
considerable

A

Clinic.

The

pa-

lack

of

earlier

used

and

had

not

due to the

was

adequate

an

even

Mayo

1948,

was

Cortisone

that

fact

been

treat

date

amount to
being,

human

one

for'

preparation ? torfeone

the

of

amount

other

patho-

additions

pr0Vements

to

im~

and

of

properties

the

tion and sale of electric energy to,;

about by

brought

been

has

electric

control measures,
both
against the mosquito and
against the disease
in human
beings.
However, this is not so
in many other parts of the world,
effective

very

soldier

the

to

in

malaria has become a very

Korea,
serious

problem, since 10% to 30% of the
returning veterans may be infected with a form of malaria

energy at wholesale to
electric utility companies*
and municipalities throughout ar*
area in the northern half of In-

other

diana and the southwestern par®
of Michigan. The company servea-

148 communities in an area having*
estimated population of 1,072,-

an

000.

Halsey, Stuart Group
Offers Equip. Tr. Glfe,

capabie of spreading again in the
tPmneratp

P

zone

•
.

..I

,

certain

and

The elimination of malaria the public and the supplying o£

here

Through the efforts of chemists at
the Mayo Clinic and Merck and
~

u

„

we

^ hag ceased to be a prob_

lem-

^goes to Dr. Phillip Hench and

and his collaborators at the

the

first

the

arthritic

Primaquine
-

,

.

Halsey

-

.Because ot the effectiveness of

Co.

&

Stuart

Inc.

anc*

associates are offering today $8^

suppressive antimalarial, 850,000 New York Central Kif.
bioroauine
j
possible to pre- 3%% equipment trust certificates*
cnioroquine, 11 is pussiuie uu piu
^ r
.
nerimpntal trial Of tho material
vent the development of the active equipment trust of 195^, matitt^
pelimentai trial ot ine material.
disease
bv
simnlv nig annually Feb. 1, 1953 to 1967,
The res, of the story is well
o^ to two tabte&inclusive at prices to yield from
known to all ol you—the, miracu.
ruriouslv enough
in 2-40% to 3.45% according to maious relief of cases of rheumatoid
thj
maiaria called vivax maiaria, turity.
Issued under the Philaarthrit's when either Cortisone or
the
disease
is only
suppressed delphia Plan, the certificates are
ACTH was used—the disheartenhn
h
chloroquine ls being secured
by the following new
railroad
equi{>mg finding that the reliet is not
After the dru
is with. standard-gauge
" ' —"
'
hi 1a
bile,

liters of

tion.

for

in

produced finally for the

would be

4V2

nents

credit

Cortisone

were

emulsion

fat

actual

of

from
irom

it would be feasible to

infectious

that

those

Cortisone.

use

the

parts of tlle w0rld than the Umted
Indiana & Michigan Electric
States' Malaria in our own COun- Co' is engaSed ^ the generation,
try' except * ±or 1 h eu return11^ purchase, transmission, distribu- ?
Q

produced by the administration of

much

For the first time,
supply the

patient.

animal life and by the number of

diseases

similar to

be

of

provemenus to tne pioperues of.
AOglcaA condltlons.
the company.
We shall close now with a comThe serial notes are redeemable
meilt 011 malaria- In the field of in the inverse order of their matopical diseases, malaria still turities at prices ranging from
ranks higher in incidence in other 102%% to par.

was soon recognized
that fhp pffppfc; of thA inippfinn nf
that the effects nf the injection of

would

nil

ronditions

i0pjpal

compounds, it

conval¬

do

undoubtedly

maintaining

above,

tumors

tne aarenai ot uoi tisone and allied

The

is one impor¬
nutrient that is lacking. This

in

Yropert^1of^ACTH is Rs
calacitv to stimulate the adrenal
cS resulting in^ secretion bv
the adrenal of Cortisone and allied
ACTH

or*.

hid

$10,000,000

of

andt5eatn?ent 0L^aligfJ?1 extensions,

?0S1S

Mayo

nituitarips

shepn

its

on

'

total

«

as

Amuftr

Viand

195°

'

u

logical

'

there

However,

voars

the

at

ma

sal*>

comDOunds
of
51 tne sate ot instmoixiaaioa(rliy.e compounds 01 gage b0nds and other funos will
iodine, and iodine- bp annlicd
to
the
nrpnavmpnt
rapped serum albumin have now
De appAled ;° tne prepayment,
Aaggeamade available. nave now wlthout premium, of a like aggre ■
se!um aAfu"lin This line
been
gatp
DrjncjDai
amount
of
nott«*
0f "Padiotones"
call them
principal amount of noteo°' ,Kf10t0PeS» 3S We call them, payable to banks> lssued for conWiH_j predict—play an increas- struction purposes
The balance
inrriv important rolp in thp diaeslflACAlon Purposes, ine paianco
8 y
ft ?
f ? tne diag Wlll be used to pay for the cost 0£

1936, Dr. Kendall

associates

r0mr>ctitive

phosphorus,

Since the important Dlivsio

future of

Certainly

15

22

to

accoiding to ma-

group won award o£

at

Io0.4629%.

radioactive

bodv

Clinic isolated Cortisone from the

antibiotics, bohydrate. If fat could be suc¬
one can state that there are many
cessfully incorporated into an in¬
new
drugs just around the cor¬ travenous product containing the
ner.

for

jan

treatment of inoperative tumors

ilai-

hydrate solution. By the use of
potassium phosphate and sodium

^
as

atoo

his

and

furnish
more calories to the patient than
the same weight of protein or car¬

to

investigation

note£.

2.f the uT7' and.0f,tf!e human Proceeds from sale of firstof the
iterilS' notes from the the sale mnrt-.
To reacb 0tner parts of the

physiological properties have been

loni
long

Halsey,

offering

according

mu

tbe

especially useful tool in this
connection,
particularly
in
the

ton hormones whose
two hormone* wWe

On
on

3 20%

to

cancer

gold

an

public

unaer

in 1943 to less than 5c in 1950.

As

focused

As
As

tant

Corner"

,

2 75%

Radio7
•/
?? has ,Kadl° turity. The
J;
become

of

cases

tr<;?ied colloidal
cr. .®,
active

Corcor

certain
certain

and
and

has

treated

arthritis,

Next, a mixture of
vitamins may be made available
and added directly to the carbo¬

needs.

industry to reduce the price from
a figure of
$20 for 100,000 units

New Drugs "Around the

lever
lever

oy

K sports aie now appearing FlppfriA of Indiana & Michigan
1956-67,
summarize
the
clinical
fn
at
nrWc
tr.

more

as
as

Utility Notes

headed

group

whicn

Corcor

abolic

in "quan¬

tity, but this large-scale produc¬

(now
to
to

relieving

in

of
ot

amino acids to meet ordinary met¬

1945, production had increased tein, carbohydrate, vitamins,
minerals
intravenously
in
2,500 times in the two years since
the

ACTH

states

attention
attention

other

of

amounts

lergic

effects

referred
imeirea

rheumatic
ineuniduc

es¬

acids and also fur¬

amino

and

licotropin)

recom¬

and

sugar

remarkable
remaiKaoie

properlv
piupeiiy

of

use

carbohydrate and

these two foods,

sential

The

stream.

protein,

can

A

directed at study of 100 or more isotopically

two

injected directly into

erated when

agreed

contribution

and
ana

Mofp
more

answer
answei.

research being

is

these

fractions that

smaller

resources

tremendous

ideal
iaeai

no

more

unknowns and better
that
also
can
be
eroundwork is heine- laid for the
vein. . The term "pro¬ grounawoiK is peing laid tor the
tein hydrolysates" refers to com¬ understanding and evaluation for
these two diseases.
to.;
monly known proteins, such as
casein or blood fibrin, that have
Cortisone and ACTII
been broken down chemically into

pool their research and devel¬

opment

still
sun

Public

Geiger

a

radioacttive.is°t°Pes are Start°&~*Co7~IncT is"
Sy'reportflr" appearing ?»°

by

given

medical manufacturers and to top

government

hypertension

of

problems for which there is

are

has

hydrolysates

enough penicillin
clinical trials, and,
ultimately, to supply Allied mil¬
itary needs.
They quickly sold
the importance of their problem
to American pharmaceutical and

production

problems

rentedToOetch0S0Sthere'andThS

development of protein

been

in

interest

the

recent

More

years.

en¬

States to

United

land

The

patient who cannot take food
by mouth. The use of intravenous

sugar

determine by means
counter the exact
location of the suspected tumor.
of

3s>

Halsey, Stuart Offers

to accurately

cardiovascular disease.

the

Florey and his associate, Dr. Heat-

advances in the treatment of

new

portant problem is that of feeding

clinical trials in man.

likely that improved in cancerous tissue.
When such
will bring a drug is given, it is then possible

seems

anticoagulant therapy

spoken of the impor¬
of blood itself. Another im¬

We have
tance

(397)

and it

Substitutes

Food

in¬

how

purify the drug, then developed
its pharmacology in animals, and
finally made the first encouraging
Two

Financial Chronicle

The Commercial and

.

by

and,

learned

effort,

.

.

arlAnuatp
adequate amnnnts
amoqnts

anH
and

the

ex-

followed by permanent cure and
drawn, the symptoms of malaria
Chloromycetin, and Ter- research is being conducted in an
that in most cases the remission
ramycin. The big gaps in anti¬ effort to produce a practical fat
may break out in j ust as .severe a
is only temporary.
The Patient's {or/n as would have occurred at
biotic therapy today do not lie emulsion for injection.
Many
symptoms, in most cases of ar¬
the beginning.
there, but rather in the fields of problems still confront the bio¬
thritis, are relieved only so long
virus and mycotic diseases. Some chemist in this development and
In
order
to
completely cure
as
the drug is being given.
We
authorities
believe that
in
the it will undoubtedly be some time
vivax malaria, it is necessary to
should point out,
on
the other
next 10 to 15 years, there will be before
the; product
becomes
a
use a drug that will destroy those
hand, that in many cases of severe
an antibiotic for every infectious
reality.
malaria
parasites .that probably
arthritis, even this temporary recondition including the virus dis¬
Still, on the hide out—not in the blood stream,
Drugs for Cardiovascular Disease lief is a godsend.
eases.
';V
other hand, it must be emphasized
in
tlssue cells. Now, reWe shall turn now to a different
One of the war-time problems
that Cortisone and ACTH should search has made a real advance
The
for which there is great urgency kind of medical problem.

omycin,

ment estimated to cost

$11,912,000:
switching locomo¬
tives and 60 diesel switching lo¬
comotives.
v'?:;
iXv'v
diesel

35

road

Offering is being made subject
approval of the interstate Com¬

to

Commission.

merce
'

Also

in the

associated

offering:
Bear,

R. W. Pressprich & Co.;

are:

^

^

g|;earns & c0 ; Equitable Securi-

^es corp>. l. e. Rothschild & Co.;
rpbe nbnojs c0>; Wm. E. Pollock,
be administered with great care, i?
this direction.
During and ^ q0^ jnc. Fjrst 0f Michigant
concerns
our
need for a better seriousness of hypertension and
Serious
side
reactions
resultihg since the last World War, a group corp.; Freeman & Co.; Gregory &.
supply of blood for the wounded cardiovascular disease seems to be from
long periods of treatment at °f governmental and pharmaceu- gon incorporated; Ira Haupt &
Certainly
man.
Blood and blood plasma in¬ well appreciated today.
high dosage may result.
tical laboratories made an effort Co . Hayden, Miller & Co.; Wilthe
vestigations—linked

the

to

magnitude of the problem

tre¬

mendous blood donor program of

borne out

the American Red Cross—has

of

sulted

lives

in the countless savings of
on the
battlefield.- Beyond

that, the work
and

re¬

study

the preparation
such blood "com¬

on

of

ponents as serum albumin, gamma

globulin,.' and,

penicillin and; other
ments,

Today there is

as

develop¬

war

total of

the

U.

in

S.

-500,000

were

disease

and

diate

cause

deaths

1% million deaths in

in

than
due to cardiovascular
probably the imme¬
1948,

the

half

least

at

of

more

latter

lives each

year,

diseases of

consider¬

125^000.

It is estimated that 33,000

persons

die

the failure of our citizens to sup¬

monary

blood clots and that 5%

concern,

the

ply

a

amount ; of
the Red Cross serv¬
ice. To supplement this need for
blood, much research is being de¬
necessary

blood through

voted

to

the work

on

blood

sub¬

commonly called plasma
extenders. Among those that have
stitutes,
been

developed,

seem

to

are

show

Dextran, and

pound
these

the

the
a

substances

which

promise

synthetic

PVP.

called

ones

most

com¬

Solutions
be

can

of
injected

directly into the vein of the

pa¬

tient and will, in most cases, pro¬

long life for

a

time.

They

are,

best, only susbtitutes and in
of

severe

will

loss of

eventually

whole blood

or

at

cases

blood, the patient
need

to

receive

blood plasma.




of

all

due

from

annually

"

\

are

several
remark¬
have already solved

drugs

parts

of

further

These

problem

development

general
tinue

the
use

to

will
the

and

more

doubtless

improve

are

their

and

the

con¬

situation.
anti¬

so-called

ances

I

can

we

This

the

is

EtODes
istopes
have

usp

medkfne

in
in

Remarkable
KemarKaoie

medicine.

the

been

since

this

field

line

of

radio

cals

is

now

and

developments in
1947 and a small

isope

pharmaceutibeing

actually

used

in

three

em¬

tracer

technique

the behavior of

operative complications of this na¬
ture.

ease.

currently

development

in
and

the

drugs

process

clinical

of

assist

in

For

radioactive

the

Secondly,

diagnosis of dis-

instance,

compounds

there

the

experimental

iniirSciuihe
malaria the

University

group'took

primaquine

t» KoreagtoSinitTate

the

use

of the

are

with] Robert Hawkins & Co., Incorporated, 10 Post Office Square.

a

on

Pont^
Company and^l^ie^

was loimeily with (lu

J?omsey

•medically

.

Tlle evidence so tar inaicates that the drug can be take"

Qume.

h

fn

necessary

dose

a

tient will be cured.
As

into

we

in medical research look

strength

to

gather

we

future,

the

hypertension, arterio-

White has become
R.

L. Day

& Co.,

—

Chronicle)

Clayton

associated witk.

Ill Devonshire

Street, members of the New York
and Boston Stock Exchanges.
He
was

formerly

Company, Inc. ;

with

Jackson

Sir
;

,

Richard Buck Adds
(Special to The Financial

Chronicle)

pe®0ba^0becmneS assodated^l^

to1
And Rjchard J. Buck & Co., 8 Newbury
these, the eventual solu- Street. He was formerly witffr

sclerosis—and

still

we

have

mention the common cold.
even

Mass.

g

continue

against those unsolved mysteries
cancer,

(Special to The Financial

BOSTON,

without

harmful slde efte^s and ™lth a
14-day treatment, the malana pa-

available to

trial, today that concentrate primarily

(Special 10 THB FlNANCIAL CHR0NICtK>
^'BOSTON,— Frank Ik
Young, II has become associated

-

thereto with R. W. Pressprich &
unique experiment of treating all (-/0,
"■
returning^ veterans with^ primaWjth R< L Day & Co# ;
ovirl„npp
far ind;
embarked

has

ma-

broad

the categories: first, to investigate by

to

are

pro-

These

marketed.

are

drugs within the body.

anticoagulant

one

radioactive

of

bolism, and also by many surgeons
for
the
prevention
of
post¬
Other

that

say

brought

has

research

f

drug on returning veterans. ' As
a result of these
tests, the Army

thing better than the atomic bomb.

terials

many
cardiologists
in
treatment of thrombosis and

glad

am

*

.d

the

Use of Radioactive Isotopes

j

After

S!}m

serum

relieved.

are

duced

by

:be

^a^toWtem.CTenta1 disturb-

Dicumarol

used routinely

fever,

sickness;>. inflammations top

coagulants of which Heparin and
are now

can

To mention a few of these;

rheumatic

atomic

'

Fortunately,
able

Particularly promising

of

pul¬

deaths

post-operative
embolism.

to

is

^
C°"
o? Sin"'torde^ whl^the ^f^^^lS'-prima- Y°UnS With R" "awkinS.
time'
administration

200,000

in this country over

able

learn.

acute

than

hormones

and there

short.

more

{» ""f.3" f^f^work > "and Pam McMaster C„o;( McCormick &
(&
is nromisinfi malarial.
F m
Co.,
Hutchinson & Co.^
are^tof many things"o «
Muilaney Wells & Co,-and F. S.

The future of these adrenal and
nituitarv

Coron¬

and blood vessel
brain

the

the
was

group

may thrombosis or embolism.
long- ary thrombosis claims

fibrinogen

to have as v great a
significance, in medicine

prove
range

a

is

by the figures that our

tion will be found!

Perkins & Co.

34

The Commercial and Financial Chronicle

(398)

Continued from page

been

9

changing of numbers
on pay envel¬
each to about the same ex¬

expelled from the CIO

was

cyfor being too left-wing).
lines
of

have

been

1936—100.

All the

put onto

basis

a

1930's, and to a
like the business
decline in 1949, the demand-in¬
creasing effects may be spread
over several years.
They continue
moderate degree,

UE index only
1939, but it would
probably differ only slightly from to increase demand
the BLS Consumers' Price Index ployment is rising.

back

goes

The

to

Fringe

the

like

mand,

so

long

as em¬

Furthermore,

part of the consumer buying pow¬
during the year 1936 to 1939.
er used to finance the post-Korea
Average
hourly
earnings
in
manufacturing started up in 1937 buying boom was presumably the
and

have

and

faster

indexes.

kept
than

than

more

than

retail

as

UE

little

a

Index

the

of

prices

by

the

than

more

Cost

An allowance for

of

Living.

increase of

an

the

almost exactly

degree

the

lagged

the

price

rise

index

in

has

behind

the rise in hourly
wages between 1936 and 1950.
On the

C

whole, the general simi¬

increased

and

wages

main

the

were

cause

of

the

inflation, average wage rates
were far from making the average
luxurious

income

after the war.
Income figures of

National

the

Department

of
Commerce
(Table 26 in the 1951 edition) set
the average annual earnings per
full-time employee in all private
in

industries

U

the

S.

just

(not

than

the

parallelism

be¬

$3,020

in

Actual

1950.

average

of
individuals
were
tween?-the quantity of money and earnings
lower than those figures, owing
prices. However, such a demon¬
to unemployment.
stration does not prove a causal
Even the fact that a great many
relationship. Furthermore, only a
workers are either single or have
rough parallel, with various pe¬
other members
of their family
riods of deviation, should be ex¬
working also (totalling more than
pected in order to be consistent
half of all workers, according .to
with this wages explanation of the
some estimates), still leaves budg¬
price rise.
of tens

ets

Timing of Effects

short-run
some

view

of

it.

Although

increases have result¬
promptly in price increases
wage

vere

of

wage-

matter of relatively se¬

earners, a

Many discussions of the relation
between wage increases and price
increases have taken a much too

millions

of

The visible non¬
expenditures of many

economy.

essential

the

cost-of-production or
supply side, quite a few have
probably taken years—sometimes

ed

of

costs

higher

paid

wages

ployed

in

production

sometimes

be

labor

to

existing

from

plants,

absorbed

em¬

may

out

of

their profits, with or without re¬
ducing them to an inadquate lev¬
el.

But when the need to
expand

capacity
is

by building new plants
reached, then the market prices

of the products have to rise
high
enough to cover the direct wages
in the new plants, plus the

higher

costs of

Those

are

They

almost

are

higher" than
many

to

The full
wage

private

new

business

incomes in
countries.
Unfortu¬

nately, however, the increases in
the dollar earnings per year since
before

War

the

equal

not

do

mean

an

in

purchasing

1950

the increase

increase

power.

From 1936 to

in

dollars

deflate
crease

power-pressure

or

the

buying-

demand

probably
exerted
promptly, under normal

are

trols

side

fairly
condi¬

However, under price
or

in

con¬

period when there is

a

unemployment

and

points
roll

price-raising effects of

increases from

tions.

to

plants.

sluggish

de-

costs

the full increase

to

to

was

that

155%.

increase

if

But

we

by

the in¬

in the BLS Index

of Con¬

was

and

measure

earners,

due to increased pay¬

income
the

of

is

taxes,

true

a

position of wage-

the absolute gain in the

purchasing

power

of

wages

after

taxes has been about zero, except
for the gain by 1939 and the gain
from
higher employment since

the depression.
index

WAGE RATES

vs.

is

Since then, if this
there has only

correct,

PRICES
290

/

already paying above-aver¬

were

age

grade of job or degree of skill
and scarcity of ability.
Wage in¬
forced

creases

in

things

thinks

one

belong

/\

*

200

/•—-

X
/

/
v

y—

given to match others

already given elsewhere though
not
absolutely needed to keep
workers

from

>

.

100

millions of
receiving less than those
figures, it is certainly un¬

derstandable that friends of labor
should

incomes,

increase

to

want

and

workers'

with

try

all

their

used

this

article,

is

however,

that

on

average, much of the delib¬
erate effort to raise real wages by

increasing
last

12

rates during the

wage

particularly

years—and

the last six years—including the
strikes, the tense bargaining and

Having

stated the central

now

part of this wages explanation of
the

U.

present

inflation,

S.

we

must take up at least three more
sides of the problem: (1) a survey

kinds of

of what

both

are

increases

wage

inflationary

and

eco¬

be ' increased whenever
prices go up; and (3)
the union assertion—especially by
the CIO—that only corporations'
to

its

absorb

the

wage in¬
bulging prof¬

out of their

creases

caused

the

meaning has not been de¬
The raising of such wages

war,
as

price increases.

in

different

Many
increases
BLS

sorts

of

They

creases.

avoidable

age; others were always in the
labor aristocracy brackets; others

in between.

Some increases

still relatively low
pay for very hard, or unpleasant,
or
injurious, or skillful work;
Others represented modified forms
represented

of rackets.
due

Some

increases

were

to

shifting of • workers to
better-paid jobs; some to the off¬
setting efforts of other employers
to keep their workers satisfied or
to retain enough workers to op¬
erate their plants. Other increases
forced

were

strikes

or

on

employers only by

threats of

though they
top

were

strikes, even
already paying

Some

wages.

were

given

as

"cost-of-living wage
increases";
some
as
premiums for special
shifts, or overtime, or holidays
and
weekends, etc.
Some were
result

of

various

profit-sharing,

piece-rate,
other incen->

and

terialized.
A

fine

.

It

of
a

of hired

pay

Since

1948.

did

it

increases since

economically
desirable

were

necessary

have

had

and
to

be

and

1

90

1

been

distin¬
seem

to

merely

inflationary
economically avoidable. But

whether

objed&if the price of

should

ican

his food goes up

enough to cover
paying good average annual earn¬
ings to farm workers.
of substandard

The rise

during
also

the

apparently was

war

price of clothing; rise
Some, but not any of

FT-

i

i

i

first

The

instead

Necessary

Avoidable

vs.

Average hourly earnings in
manufacturing, Bureau of Labor
statistics
series;
annual figures;
1936
($.556)=100.

°Madii^eLWorke^°!rfeAS C°St
America
rs

Dashed

°*

jff—United Electrical, Radio, and

(UE) index; annual figures;
to

Dotted

Line:

Consumers'

-

.




prices—Bureau

annual figures;

of

Labor

1936-39=100.

In this article the

phrase, econ¬
omically necessary wage increase,

annual

is

meant

to

refer

to

those

which

(80.8)—100.

Statistics

index;

employers had to grant in order
to keep too many of their workers
from

moving to other jobs. The
phrase, avoidable wage increase,

■

other similar I

dol-

.

prices that the

*

cf

billions

added

lars to the total of

in- I.

price

and

and

government and civilians had to •:
pay during the war.
That wage increase also put the ;
level in those industries even

pay

ahead

farther

for

rates

of

com- ;

in low-paid industries and other depressed parts of :
the U. S. and world economy, in¬
cluding the 14 or 15 million un- <
employed. In order to make prog- >
ress in catching up to the average,;
the
substandard-wage industries
then had further to go than be- •
jobs

parable

fore.

,

■

■

of

Because

the

/

that

way

-

so '

of the line,
a

as

new

of

article

this

round

the

tries in 1937, such as the

in

hour

per

steel.

rounds

new

the

though

share

not

inflationary

of

and;

avoidable wage increases

in 1940-42 and in every year since
the}
war.
Fringe benefits are of course;
in the same class with wage rates.increases is;

Another big round of

;

hanging in the balance to-day,.,

The

second

Boosts

Wage

Cost-of-Living

type

f

avoidable^

of

and

inflationary wage increases to-

be

suggested

in this -article"*': is£
increases to covert:
the
cost of living,

rounds of wage
in

increases
which

are

conditions.

due

to

one

any

the

of

Three

of six
six in¬

abnormal decreases cf sup-'

volve

ply:

(1) A crop shortage, when there;
simply is less food or other farm;
products to go round. The U. S.
had a glimpse of one in 1947-48,1
later

short .corn crop
meats, dairy

a

affecting

products, poultry, and hides.

in

Exhaustion

(3)

accustomed

of

and
raw.

destruction;

or

of

sources

supply

reaching the limits of cheap:
materials.v
: \ rt

In all three of the above

10 to 14c

Even

industries did

some

scope

higher paid indus¬

among

the union which starts'
of wage increases is-'

round

(2) Wartime or other temporary;
shortages ok consumer supplies, y ;,j

be

to

seems

sooner or i
which puts a J

raise

a

chiefly responsible for most of the j
ensuing wage and price increases. Powerful unions led off several;

example of avoidable

within

must

employers
match

later

kinds

events, some rise of prices is
generally a fair and useful adjust¬
of

ment, until normal supplies are
hourly restored. Such price rises encour¬
earnings in manufacturing rose to age postponement of purchasing
$.624 in 1937 from $.556 in 1936. and resort to more plentiful* sub-*'
The figure had been $.566 in 1929. stittitesystimulate kdditlonaL pro-:
importation \ from:
The cost of living had dropped ductiori"
that

several

in

increase

many

hadSbeen
real

a

rages

time

Sho

1929.

over

q^money

there

meant

1929 to 1936-37,

from

level

the

for

average

years,

about 20%
so

pf increases

round

1937

workers,

wages
hour

weeks

for

and total

millions more,
T

earnings

de¬

pressed.
The

that

d

r

dustries which

ions

They were
aggressive unin part on the

acting at

[ken and

wage

«increasing the
al income then

n#

ould

going to - labo
the depression
and steel
to

was

e

There

seems

chance; to

were

end

price of iron
in 1937,

&d been in the

§VOf 1927-1929.
joSlhave been no

^absorbed that
aipof profits, be¬

ha

:e

increase

typical ~
earning

help

raised

§1

higher than Jit
y

even-

idea that rais-

rates

\

^teel

distant

companies

very: modest

re-

1:: areas,

Getting

wage

wage-earners

to

consume as

if ;

had a perfect right
much as ever of the

goods in spite of the na¬
shortage.
If
this really
worked out as the escalator idea

scarce

tional

implies it should, it would mean;
that the rest
of the population
only cut down their con¬

sumption of the short items by the
average per capita amount of the
shortage, but they must
tion

cut

in addi¬

down their consumption

by enough more than the average
to spare the wage-earners from

reduction

any

whatever

from

and
something
two-thirds of the population^
reduction of consumption for
rest of the community—the

their

normal.

labor

Since

their families make up
like

the
the

people on pensions and living on

savings, farmers, storekeepers, in¬
dependent workers, professional
people, fisherman, civil servants,
etc.—would :.be extremely large.
If he understands that, will th^
American

think that is fair?

193tf anch'39.

tap

increases to offset

average

|ive or six years
ey%fell back into

and

price increases is acting as

such

of

losses, and

-

'

must not
pay-

fob.

plausible but
ing

already

in-

jghest wage rates

kind

share of the

in

were

e

ing among the:
each

which

creases

wage

started

•

higher-cost production capacities;

sizable

per

rever,

unemployment
kept their acti

more

turn in 1937 aft :r

1939—100.

Lj»*; Wholesale^prices—Bureau of Labor Statistics index;
ngures, converted from
original 1926 base
1936

1938-39.

in

wage

steel

industries

and

of

Increases

Wage

increase

cause

90

1937

in

crease

-

wage

wage

i

much.

so

inflation.

Avoidable

price-raising effect.
100

That

that price beginning with
Here as desirable

progress

prosperous

Line:

wages

major factor in making the

a

economically necessary
or
avoidable, practically all of
them probably had at least some

Wage Increases
Solid

include

not

board, that rate may still be sub¬
standard.
No fair-minded Amer¬

tually inflatio

which

is the aver¬

farm workers.
rose, according to Department
Agriculture figures, from $1.45
day in 1936 to*$5.40 a day in

age

apparently wo

both

increase

an

of substandard wages

for

wage

full

-JR

example~<of

applying this
wages explanation of inflation to
the problem of trying to prevent

of

purposes

fairly

as

and .chances to get
better-paid work jelsewhere, ma¬

undesirable

shown in the. chart.. Some began
and ended well below the aver¬

were

largely un¬

weje

soon

as

wage

into the
earnings
figures

hourly

the

employment,

averaged

are

during

or

is the main body here classed
economically
necessary
in¬

rise is regarded

\Wage Increases

of

'30's

the

economic

Varieties

decline

dexes

exact

consumer

refusal

however,

prices,

•

agricultural *'
made price in¬
in

and

big union out in front of the rest-'

endless

agitation, and the wage
rate increases actually obtained—
has only inflation to show for it.

production

many

One of the

the

slump in industrial

renewed

in this article,
just as it has been in wage discus¬
sions for years, even though its

either

conclusions of

were

.

frequently

fined.

main

than the avoidable.
wages is a phrase

Substandard

might to do it.

/

<&-

also

the necessary

have

160

will

leaving,

•

y

in

put

ing, and with tens of
workers

guished from those which

160

be

be left in the middle, but closer to

would

•••''

(e.g.,
plants in

in the American Standard of Liv¬

1936
200

the time

will not
here. :,t

1930's),

inflation, the

/

/

industries,

textile

southern

some

Increases

av¬

tive wage plans.

260
•

of

the

jobs elsewhere at

Incomes

worker earnings relative to

the

For

2 B0

threats

by

low-paid

though

products

particular

each

for

wages

either group

the

290

or

pecially those in industries which

the

employers.

Increase

average

other

buildings, machinery, sumers' Prices, we find that the
and
materials, plus the higher increase in purchasing power was
costs of
transportation, wholesal¬ only about 50%.
ing, retailing, and taxes, plus a
If the UE Index of the Cost of
fair profit, or there will be no
Living, of which by 1950 over 20
incentive

labor

embarrassingly

new

build the

fringe costs should also
to hourly wage rates in
measure

ought to

"essentials."

some

average income figures
presumably the highest ever
reached by any such large num¬
ber of people anywhere, both in
as many as 9 or 10—to exert
and in real purchasing
their money
full price-raising effects. The add¬ power over gqOds
and services.

ed

from

These
be added
order to

of

neglecting

with
threats of
a
actual strikes, and es¬

pay

strike

even

ably made in part at the expense

prob¬

are

on

workers mostly
could not have gotten better-paid

of 1950.

as

nomically avoidable; (2) a review
of
the
theory that wage rates

families

lower-income

The

forced

were

strikes

either

or

The

annual,

some

hour,

per

all

industrial

other

many

employers by union demands for

that

those

to

25c

of

of

prices

also raised in 1937 *
after labor costs were increased.

fer

these have been worth more than

average

before, during,

reflected

of

hourly earnings fig¬
leading companies

or

For

ures.

not

are

series

usual

weekly,

erage

if

Even

salaries

larity of movement between the
line showing hourly earnings and manufacturing) at $1,408 in 1929,
$1,181 in 1936, $2,259 in 1945, and
those
showing prices is a lot
closer

the

In view of the small size of

Wage Incomes

year

account for

to which

wholesale

a

of

Level

worker's

productivity of about 2%
would

the

which

workers
in

Efforts

at

BLS,

benefits, however, such
as paid vacations, insurance, pen¬
sions, etc., have meant gains for

years.

prices, still

consumers'

measured

only

much

gone up

wholesale

more

but

rising further savings that had been accumu¬
lated during the war and postwar
any of the price

on

They have

tags and

tent.

Inflation, Money and the CIO

the other hand, is meant to re¬

on

higher

opes,

which

lot of

a

price

on

1052

V: Thursday, January 24,

.

wage-earner
..;

of ; In the same category, belong the
them paid no dividend or only a postwar price increases of some
in 1937 on the U. S. products, especially 'foods,
very small
or
the

in

red

large value of j

by

the

-

nothing

ts

Most

represented :whicht

commdifjpftock, and paid
in

lOW^'Jnd"39.

The

were

purchased

and

ex'-

ported in extraordinary quantities
to

foreigncountries

desperately

Volume 175

short

Number 5084

of food

other

.

Most

of
in

creases

to

food

essential

based

teases

helped raise

during

emer¬

the

prices

self-perpetuating
of-living

spiral

of

cost-

level

to

return

to«the

low

pre-emer-

Wartime and rearmament short¬

present

lems.

special

some

There

prob¬

prices

them

for

down

to

hold

to

the

all

peace-time

level.
For

thing, plants unable to
full capacity because of

one

work

at

shortages
have

materials

of

higher

costs

of

This

same

arising again to-day in

automobiles and other goods con¬

taining metals in short supply.

Secondly,
have

to

manufacturers

counted~ in

were

taxes,

tele¬
transporta¬

ma¬

the

indexes

arise

to

wave

left out.

earners

Our
need

of

the

economy

new

buying

The country may

—

or

by producers,
be able to work

practical methods of doing it,
may prove to be a minor,
disadvantage
of
a
which Congress' unavoidable

of

giving wokers in¬
pay to offset
all the

in

creases

caused either

waves,

consumers

increases in taxes

out

it

or

consumers-choice
But to start
alike, whether directly in income * wages chasing prices up the buytaxes or indirectly through excise ing side of the waves only makes
state

and

governments

to

levy

found

all

on

it

citizens

free-m

k

a r

economic

t,

e

system.

terials which cost more, or mate¬

taxes

the

rials

is

ward side of the waves there

prices

they

have

may

have

may

to

risen,

higher

pay

-

to keep their workers.

wages

or

cept for possible offsetting

Ex¬

econ¬

omies, there seems no good rea¬
why these higher costs should

son

that result in higher prices,
perfect example of a demand

a

for

inflationary

an

is

It

true

in

holes

that

the

by

loop¬

and

people and corporations

some

es¬

part of the tax burden that

cape

periods of slack buying
unemployment, unless new

be

and

which

are

laws

still

policy.

wage

there

tax

On the downwill

higher.

waves

of inflation are

larger doses

injected in each lull to keep prices
rising more

less forever, in fits

or

types

of wage in-

Let us turn, finally, to the argument heard often in the public
statements of CIO officials and
other speakers, that wage increases
should have been paid
without passing on the higher labor costs of production in higher
prices.
Corporations' greed for
excessive profits, they say, and
charging all that the traffic would
bear, have been the real cause of

here call avoid-

we

starts.

others in their class pay. It is true

and

producers won't
bother with the extra' struggle of

also that

trying to keep

and large

inflation.
Before coming to the issues up-

permost

dollar for dollar to the Treasury
deficits of those years. The defidoubtful that rounds of wage rate elts had to
be covered by inincreases
are
justified even if creased Treasury borrowing of the
prices do rise
crop shortages, same amount, much of it unavoidwartime or other emergency dis- ably> from hanks, which increased
locations, destruction or exhaus- by 'hat amount the quantity of

be

not

passed

Otherwise

ing to

to

on

supplies

some

mov¬

increases

kinds

which

for

offsetting

ber of

of

price

rounds

new

increases

wage

are

relatively small

a

market

capital goes
shall

num¬

people have large incomes
capital, and that some¬

the

times

consumers.

The other three

of

consumers.

some

not try

value

of

some

In this article

up.

we

to judge how much

equalizing of wealth and incomes

economically unjustified and in¬
flationary are those due to the
raising
of
substandard * wages,

by taxation
maiming
a

higher taxes, and

That

sumer

will

con¬

producer buying. These
separately.

or

discussed

be

used

is possible without
private
enterprise

if

But

economy.

almost

the

tion

to

millions

of

workers

(4)
be

Substandard

raised

wartime

as

job

all, for
described, and

already

prices of

to

oppor¬

tunities developed for
sons

Congress

had

wages

rea¬

the

products formerly

many

made with

low-paid labor had to

be

enough

raised

to

as

wage

already

were

then
to
increases to cover

those higher prices,

really meant

that

they demanded that they be
served by labor paid less than
they themselves were paid.
No

has

in

one

moral

a

tent

right to

that

catch

up

income

any

whenever

crease

his.

the

to

No

in¬

wage

a

and

group
ex¬

their

being produced by
paid less than he is. V
Besides

ucts,

in

rose

the

imported

price

partly because of
of substandard wage

raising

badly

conditions among

depressed

.

and

Of

course

not

all

pro¬

import

price increases were of this sort.
The same general principle ap^
plies to price increases needed to
bring the compensation of en¬

including
farmers,
individual businesses,

trepreneurs,

landlords,
and

Especially

during the last
the American
public, supplemented by foreign¬
ers with dollar balances, have con¬
(6)

eight

years

held

tinuously

other

and

money

than

assets

the

finished

the

available

those

a

liquid

of

two

In

mand

supply

over

will

be

bidding prices
Such

of

buying

producer

in the last

times

thev

the

occurred
of

1936-39

that

would

they

if

that

was

the

all

have

never

been

•started.'

II, after the end of the

—

early

especially

part

after

the

and

the

latter

the attack
To

on

grant

part of

est-paid
•rates

already

than

and received

boosts"

in

depression

1929,

wage

or

40%

demanded

prices started

below their pre-

level.

CIO and AFL

that1 large

30

"cost-of-living wage

When food

to rise from 30%

the

whose

industries

were

higher

wages

and

increases

rising just

makes

By

1945 when
insisting

were

additional

cost-of-liv¬

ing increases were long overdue,




a

as

fast

as

of

poning

pretty

the

more

to

buy later.

Sq more and

prise rise in consumer goods was

liquidated in the selling off of ex¬
cessive inventories in 1951. Much
more,

but not all, of the late 1950

it was
American

work

to

five and

a

earnings

penalized those who insisted on

buying at once, encouraged everyone to wait longer, and stimulated
greater production. Competition
would have brought prices back

relation to costs of

added to corporation to a

before taxes.

revenue

thlr bmfons

to

The

added fur-

production within a reasonable
time. The wage increases were

killed the chance of prices
return.ng to their old level.

deficits and what

the inflationary government borrowing.

Modest Dividend Growth
The
pv.gagpg

demanded

wage

in¬

could not fairly have been

^by

reducing corporate divdividends
remajned modest.
According to
Total corporate

idends>

and

hall

them to bid for still-scarce goods
too early in the reconvers.on peless nod.

be

said

stopped

Still

about the more ex-

treme cases where some groups

sure

join the stampede.
Some of the early post-Korea

When mil-

expect

to

righting

need

.

of

One

of

the

basic

objectives of

Prnhablv

investment
between

billion dol-

around 80

in

U.

S.

1936 and

corporations

1948 from new

moderation program ad- gtock issues sold for cash or exthis article is to en- "changed for assets or services,
very small in the total—somehow
able workers to receive the larg- .fr0
stock issued in place of rearranged to do little or no work est possible earnings and to accu^'organized bonds and convertible
on
straight-time pay but almost mulate more savings without in- ^rids and from reinvested earnall
of
their
work on overtime nation of prices.
Its adoption at .
'of corporations. The total
workers

to lose money, for prices are
almost sure to be higher if one
more

The government collected some
taxes on the increased wage pay™nts but at a much lower averaSe rate than if the same amount

top premium rates to time and a
instead of double time until

way

waits

^rnrse loo

half

people realize that post¬
a

U. S. Treasury.

Sayings Bonds They were Department of Commerce estiunable to spend all their wages mates ^ey were $5.8 billion in
during ' the war, because of the 1929
6 billion in 1936 $4.7 bilor
six 8-hour days on straight- shortages of civilian goods, and jion'jn 1945
and $7.2 billion in
time hourly rates, and to cut the impatiently
used too much of jg4g

temporary inflation

is

tcThaw *been

good

With tax rates at the wartime methods of marketing, a tempo-

had been
•

.

all for the extra hours,

workers

The, further increas¬

buying

case

reasonable

prices,

increases makes

if

insistence

war

time.

at

in

keep

ing of costs of production through
and more

the

going up sharply in 1946-48.

deposit money outstanding. This
(b) The way grey market prices
is why we have argued that much developed after the end of OPA
of the increase in money supply — for. automobiles, steel, other
was due to rising wage rates and metals, newsprint, some building
not vice versa.supplies, etc—showed that many
Second, those wqge increases leading companies were not chargwhich were absorbed out of com- in§ a11 that the traffic would bear,
pany profits without raising prices Besides the industries just mencut do\Vn by additional billions turned, leading oil companies, most
of dollars the government's tax retailers, and a great many other
collections from corporations. Not businesses, clearly tried hard to
paying the wage increases which hold their prices down m spite of
actually were paid would have the overflowing demand for their
shifted that much income from the products. Many of them seem to
pay envelopes of workers to the have just fixed
their prices acprofits before taxes of the em- cording to their usual pricing for-■
ploying corporations. The govern- mulas, based largely on costs,-and
ment would have captured prob- held to them,
ably 80 to 90% and in many cases . (c) When demand for a prod95% of the increase, first in taxes uct at the going price exceeds
on the corporation's income, in- supply,'some producers and diseluding the excess profits tax, and tributors can set up waiting lists
then at the level of individual in- of customers for their products,
come taxes on dividend payments. For other types of products and

people on salaries, and inIf wage pirates had not been
cluding the millions in uniform, raised so much during the war,
were
working much longer than wage earners would not have had
8-hour days six and seven days a so many scores of billions of dolweek with little and often no pay lars worth of currency
deposits,

1950, after

conditions in order to

permanent.

during

hard at a" wrong

.Korea.
wage

shifts

.

|

.

,

But

balance the rise of farm product
prices so as to prevent the average of all consumers' prices from

lions of

war

death

on

niglit

also seems a

a

a

OPA in the second half of 1946—

those wage

1940-42, unions in the high¬

In

.

mmeare

World

in

unpopular

prices
of industrial products,
would have beep able to counter-

level> Pay raises absorbed out of rary rise of prices was perhaps
than corporate profits were paid almost the best way available to ration
job
entirely at the expense of the some supplies. It would have

Sundays

his

profits .without raising

of

out

for

desirable

dea^'S'work
^ riding

three

War

mo?e
K

spedal

other

and
are

^

before

and

seems

em-

natura"tS JSS

and

12 years:

owork

interrupting

holidays

work

start

consumer

man

an

waees

hafai^ Pavin^ ^xtra ^r

up.

waves

a

for

or

and

able

and

the supplies

making

40Tours Tweeka

spending of
currentlyincome, the excess of de¬

exhaust

every

nremium

nav

asking

sav¬

the past, try to crowd
into markets to buy goods in any
short period of time, on top of the

to

of various diconceivable

pay

on

peacetime

nlnvpr

ings from

earned

—

pretext

three

or

extra

or

mensions

only worsens the excessive buying

reward the investors could expect,

•

time

few

very

That

during the war.

is, insistence on paying premium
or
double

value of all

than

inoperated

rates—time-and-a-half

and services
one time.
And

any

more

of avoid-

wage

mentioned

be

especially

goods

at

whenever

highly

sales

for example,

low in

Rates

inflationary

to

crease

greater total of

a

and

able

so

Or

those

so

from in-

come

The third and last type

corporations, up to competi¬
tive
levels.
Many corporations,
had profits

increases

wage

justice to other groups.

.

rates and the overcoming of

ducers.

ma¬

during

war

from

these situations

in

which

advantages

net

Excessive Premium

regular

domestic prod¬

number of

a

terials
after

the

various

on

labor

gains

Flurries

hundred billions of dollars of

a

or

all

labor

tax

has

one

most

policy demands, but perpetual in¬

billions

right to buy food for example,
clothing, at prices dependent

'

those

obtaining

higher than before. Al-

stay

flation of prices.

wages

substandard

to

in

success

and

incomes, then
probably be, not

will

result

that prices will go up more

means

bracket

upper

the

unions' de¬
reduction

of

raising

pacity

greater

the

cover

high-paid

the

demand

still

Buying

higher wage costs.
] For those who
among

of

fulfill

to

for

mands

the

aeainst

un

productive casubstandard
wages'increased taxes, and waves
of consumer or producer buying,
For labor to fight back at them
by forcing increases in wages just

ir¬

their retaliation for the failure of

Raising Substandard Wages

coming

and

limits of important

labor unions is
exact wage increases for

tens♦■■■ of

list of six

our

conditions in which it seems very

resistible power of

of

waves

completes

4

in January 1952, let us
the rounds of cost-of-living wage note briefly six points about the
increases, and the failure to relax price rise and profits in the repeacetime requirements on pre- conversion period, 1946-48.
mium rates—added to the wartime
(a) Most of the rise in conand postwar inflation in several sumers' pricks came not from the
ways. As already stated, they in- industrial products which corpocreased the excessive demand for rations typically fix the prices of,
goods during and after the war, but from prices of meat and other
through giving workers bigger in- food, and, to a lesser degree, from
comes to spend, and also increased other agricultural raw materials
the production costs which selling going into clothing, such as cotton
prices had to cover. Two more and leather, and also from lumber,
inflationary
influences
deserve Some agricultural blocs were unemphasis: '
public-spirited and avaricious in
First, the wage increases which hastening the breakdown of price
were passed on in higher prices controls. But once price controls
not only increased prices paid by were
abandoned, prices of the
consumers but also increased the chief
agricultural
commodities
armament bills which the gov- were mostly set by the free play
ernment had to pay by tens of of supply and demand in auction
billions of dollars. The ex^ra gov- markets. Nothing that industrial
ernment expenditures caused by corporations
could have done
the increased wage rates added about absorbing wage increases
the already better paid industries,

partly is doing to itself,
may or may not
methods for moderating

it at least

which

_

Wages vs. Profits

able—the union-made increases in

consuming

is really asking for pay increases to compensate it for what

ing.
idea

crease

group

by

The

with

main

the

cumstances

.

Multiplying Inflation

wage
Under those cir-

consumers' prices and cost of liv¬

necessary

may

substitute

some

use

ing

and telegraph,
tion, admissions, use of motor ve¬
hicles,
sugar, -etc.,
etc.,
mostly
showed up in higher prices. They

production

for each unit of output.
situation is

labor

or

excise

'

a

These three

iotal of consumers for a

manufacturers'

phone

price controls, but it is often im¬

possible

other

retailers'

and

be Government

may

and

gage

That

families.

is too large a part of the
real buy-

group

ones, on tobacco,
liquor, gasoline, automobiles, tires,
electric power, toilet articles, lug¬

Shortages

country was in peril and men were
dying to protect it.

of

was

their

and

earners

have been a troubled period,

half, when their

least time and

the condone by wage

lot

a

was

buying sprees,

two

buying

sumer

in¬

or

last

post-Korea

1949

with

undoubtedly

old

of

however,

up

the

In

al¬

of

taxes, but new taxes

creases

ages

and

price ceilings to
increases in corporation in¬

cover

ended.

excise

The OPA did not

increases

come

Mobilization

increased

sales taxes.

gency level after the initial shortge

to

due

was

wage

the

of

35

claimed to be a cure-all. Reconversion would undoubtedly still

Saturdays without getting paid at

rise,

wage

costs

Some

price

(5) A good-sized fraction of the
rise of prices from 1940 to 1945

a

if

made

not

mand.

Taxes

probably

retraced

had

catching
Increased

demands,
and
it impossible for the price

made

demand.

rise

been
(

more

started

emergency,

prices
increases
in wage costs, which had not been
passed on earlier, because of slack

Taxes were the way to do that,
Nor were-such large premiums
necessary "to keep up. workers'
morale." Long hours are tiring, of
course,
and
accidents increase.
But it seems an insult to American
wage-earners to argue that they
alone of the working population
of the cpuntry could not work on

would have
increases
permanently
higher and added to consumer de-

price

1929

their 1929 and 1936 level.

the temporary price in-

on

their

level, although average hourly wage rates
in manufacturing were 80% above

increases

wage

above

5%

these
emergency
in¬
prices would have been

Granting

gency.

prices and indeed the whole

consumers' price index were only

disappear after the

(399)

The Commercial and Financial Chronicle

.

h

oods.

sure

and

,

—

hopes they were

one

rates.

vocated

any

wartime

The
were

the wage

not

ployers

premium

necessary

from

to

getting

keep

too

rates
em-

in

time

should

have

greatly

eased the inflationary pressures
both before and after Y-J Day

rich/However,

this

program

is

not

frQm

the

last

source

ceeded $55 billion.
_

*

alone

ex-

In addition, a

Continued

on vaae

36

Continued on paya ou

36

The Commercial and Financial Chronicle

(400)

their. 1936 level; and corporation usually subjected to government
profits after taxes—$18 billion— control.
A union using its mowere
also 4.2
times their
1936 nopolistic position to enforce wage

Continued jrom page 35

level.

Inflation, Money and the CIO
growth

of

dividends

should

Expectedfrom'recovery from
the

lingering depression in

industries

in

the

sion

years,

find from the increased value and

replacement
fissets

cost

underlying the stock

"yi~gs 7c™sgumPe°rPs'1goodns

i
i
and

own¬

According

to

income
of

national

the

of

•o

after

S7Mio„

to

billion

$59

billion

$83.3

in

in

after taxes

The

1948.

industry

$36.1 billion,

was

much

as

enough

creased

workers

their

creased

aggregate
in

hourly

1946 and in
ceeded

1937

total

of

in¬

the

rates

wage

considerably

in
ex¬

dividends

corporate

Furnishing New Capital

(e) After-tax corporation prof¬
its kept in the business have been
ihe main

of

source

■inventories

and

building
improving old

plants and
fiince 1929. Sales of
stock

common

have

been

rela¬

Aftpr
ix itu

rppnf?ni7inf*

stocks

Hn

itujn

ecugmzing \in

prices

were

ceptive

in

new

that

steel
of

of

"Harper's" by

an
an

rejected
union

with

above for workers

though

of

rest

doing

along

strained.
The second grounds,

current

other benefits.

CIO

the article

big enough
raise

point of
that the way to get
steel capacity was to

steel prices.

in

steel

been

may

or

A steel

corrected

not

by

have

hour. The union has called
exaggeration.

an

If

it

cost

the

Steelworkers,

about $15 billion
if that $15

would

it

cost

year,

a

billion all

came

around $11 billion in lost

ury

cor-

but

«f*iiddle-size

now,

would not have been if the

agmn if the current wage demands

ones.

icit

in

fiscal

which

1953

CIO

a

paid out of Profits, which official has said calls for about
be€?n reduced sharP- $8 billion more tax revenue. The
ly in 1951 by increased taxes. ;
CIO are on record as favoring a

Admittedly the idea of corpo- were
•ration's furnishing most of their
own

new

capital out of retained

earnings is not the orthodox

ex-

^ectation of how capitalism should
srork.

However,

American

,,

.

.,

-

capi-

_r

nmrtn

supposed.

Also, since
•or such
almost

new

company's "needs"
capital might have

limit at any

no

•hey should

one

time,

not be considered

normal

!f>ricmg
•his

a

production

products.

The

part

costs

ond,

.,

«nerely

by

,

to,

danger of

out

more

®^eseacon,griS individend?'
could
sell
enough
nies

~

.

stock

to

thirteen
ii/hir-Vi
which

ia:k

fcoles.
*u

raise

most

.biliion

fhotr

they

of

taxes

to

an

base

of

are

excessive

is

best

fos-

specially de-

a

periods

of

and

in

of

w

coding theTncreas"

aggregate profits with
m1U1US
WUI.
wage

rates

(instead of aggregate
^

v

.

account

losses

„661t6„vc

crease

year

huge

,

lIie
the

ner

in-

in_

hour

wages nf all
or ail

wages

selecthfe

°<ufe

com-

wages and salaries
or

^lanations 3 h-„C^LtalISi

correct

the

kS|inno!T1wVJJlbCf3y t0
unions' mistakes.

one

to

satisfy

the

human

somewhat

especially

are

well ad-

profit-shar-

more

benefit

earnings

may in time recognize mat adoptadopt-

wise ing

reason,

seem

if

its

in

good

rpri0n ®!npl0yees are four
®VlfI
tlmes blgger than profits

Even though such

'•

proves

lyeil

m

•

it is,
be.-

*

"vimug

da

imperfect though it

f

a

comparison

nothing much, it

—

seems

an

°

ries (plus supplements

rate moderation

best

the

and

to

seems

provide

the

perhaps

only

ting capital

to

for

work

smaller

idea

exjsts
Rme 0f

£or beRer

or

has chosen to

WOrse,

much of the national

so

from

enue

of

getting this country through the
"capacity to pay more" years of dangerous financial strain
This jS doubly true in a immediately ahead, and of
helpemergency when Congress, ing workers acquire and keep old-

where

get

their

of

corporation

rev-

income

taxes.

Continued

from

age pensions and poverty-ending
savings without their value being
gradually wiped out later by continually rising prices.
;!

21

page

Mutual Funds
At this level, net assets were up
the. fund rose to $27,150,752, or by
21.7%, from the $22,312,783 at the 42.3% over the $17,045,241 a year
earlier and almost double the $12,beginning of the year.
National Investors differs from 274,764 reported two years pre¬
most investment companies in that viously.
Dividends paid by Broad Street
it has long followed a policy of
investing its funds primarily in Investing from investment income

the common stocks
of
"growth
companies," according to Francis

in

F.

1950. This payment compares with

Randolph,

Board

and

Chairman

the

of

Randolph defined "growth
companies" as those that, with in¬
terim interruptions, are believed
able, over a period of years, to in¬
their sales and earnings at

crease
a

greater

trend

of

than

rate

American

totalled

1951

the

equal

89 cents

President.

Mr.

the

from
been

business

as

a

$1.10

share

to

reached

in

a

first

peak

share in 1949. Dividends

a

income

investment!.

have

paid in each of the 88

quar¬

ters since the Fund's
and

organization
have . been
in¬

payments

creased in 7

of the last 8 years.-

The report

rising

these

;

emphasizes that
have

increases

been

more

whole.

than

He emphasized that the growth
stock policy is long range in con¬

the cost of living-during this pe¬

cept and that while the Fund's

re-

•

am

97.8% in asset value, adjusted for
distributions

from

realized gains

greatly
problem, on investments, since the company
the right to !??Jame a mutual fund early in

forcefully

claiming

start

a

creases

the

on

of

round

new

-

wage, in-

of

ground

to

see

this

before

a

many

other people do and before more
economic sense about inflation is
common knowledge.
*

»

.

,

addition

Dividends paid from investment

income totaled 47 cents

1951, which

to

Treasury and
-

the

the

fact

that

taxpayers
-

the

will

-

a

share in

the second larg¬

was

est amount in

the company's his¬
tory and compares with payments
of 51 cents in 1950 and 40 cents in

enough to offset the rise in

riod, thereby protecting the pur¬
chasing power ©f income from in-

Common
1951

to

wages)

^

vania's "Prudent Man" Bill which

would

of

and

stocks
net

accounted

assets

on

represented

an

for

Dec.

31,
interest

.

,

.

.

56 different companies in more
than
Hiffprant
mi
than 15 different industries.
Oil

in

stocks accounted for 20.44% of net
assets and were the largest industry holding. Chemical stocks were

permit trustees to invest
funds; was vetoed by

mutual,

in

John

Governor

S.

Fine

at

onq

minute before midnight on Mon¬

day, Jan. 21.
The
only-; comment

that

thd

Governor would make is that the

bill required further study before

into law.;

enactment
It
one

1949.

97.39%

^

A claim for a wage mcrease on
that ground is dishonest, because,
in

1937.

"ca-

monop

great

<

:

reported, however, that
the important factors in the

was

of

Governor's -decision

was

;

the

strong opposition, to the Snowden
Bill presented

by the Governor's
Department and the

Banking

K'nVin„

pAmmnnihr

Pennsylvania banking community.
Earlier

in

this

current

session,

the State Legislature passed the
*n effect do most °f the paying,
Berger Bill, a partial "Prudent
the new increase wil1 have to be
matched by countless businesses second at 10.50% of net assets. Man"law which permits trustees to
wi.th inadequate P,ofit.s- Pickine During the to^-quarteK 13,000 certain
Gulf Oil
specifications. Investment

^ ^ aggregate
because onlyTmoLrrS'nten
^

a

buyer, "You buy all
that

you

from

dont

us

at

your

our

this

pnee, or

get any of it,

means

and

that

because

vuuvuvv

paid by corporations
aboui $96
For 'trade union members and
billion after exrtndw ;nav7*«
«ther workers would of rnnrco
•raier
mg pay of cprwould nf course be
poration officers-were 4.2 times

;




effectively
thau
unions'
present bulldozing tactics. For a

more

K puM^tmty
acceptance

and 7,500 Union Carbide

were

introduced

folio.

Republic

into

Natural

increased by 4,500.
nated

were

6,000

the

port¬

Gas

was

Stocks elimi¬
American

Re¬

in mutual funds under this law is

prohibited
are

not

change..

because

listed
_

on

theiri shares

the

.

Stock
'

:t

Ex¬

*

It will be necessary for propo¬
15,500
Halliburton
Oil
Cementing and 2,500 Out- nents of the Prudent Man bill to
boar(j Marine and Manufacturing, wait until the next legislative sesReductions in holdings included sion, beginning January, 1953, be30,000 American Airlines, 4,500 fore they can again- introduce a

publics,
Well

Ayr: Lines and 8>4001 Affili- complete "Pmdent Man" bill into

ated Gas & Electric.
~
as

Z&TEVBZ

-

if the firm's results

Eastern
*11

different wage policy may

a

som? Period- Thos* cx.tra Pay-■ chance.of maintaining full emmen-ta' decline
.unllke wage increases, ployment without inflation, of getwould

the'inflation

or

W

install

plans

J-*"*
should

nr.

panies o'rTndusTries ' Ai^n'^Iu^.'J; out some companies with moderof percenlages will hlde
'the fact ?te or 'ar«e profits is no basis

power-

SSi notihif A
o"nthetUnatt Y-' th0W"
jsystem

aaIipv

besides

worsening

temnorarv

plowing workers)- and
a
has many dally profitable sample of

their

finQnAiol

Furthermore

T

increase from

long
in

_

nallAnal

national financial policy.

steel-making pacity to pay" is dishonest,

pressed period
to
a
peak and taking no

...

been

tremendously

unions

more

*eFed by three favorite forms of
misleading statistics: — measuring

ten to
a

other

,olistic, and illegitimate. Unions,
The impression that
profits after however, should not be expected

com" earnings;
new

u

of earnings,

For

-

the

dollars

have

for

capacily-

hand, the idea that

paying

build

Ilndhr"

-

,

n

and

a third time to cut
prices;
fourth time to pay
larger dividends, and perhaps a fifth time

>
.

i

.

members; sechigher corporation

taxes,

„

On the other

—

a

happening is limited, because

:

to:;pay

in

•he ability of
corporations to earn
excessively from sales in competi•ive markets has
many natural
curbs.

nrif.es?
prices.

CIO spokesmen seem generally balanced budget. Yet nationwide
for 196l were favorable, the vestments
in Broad Street Ininsist that most of the steel acceptance of their wage demands only real measure of its progress venting.
company profits after taxes be
blow sky high what they js the long term record. National
THE SNOWHEN BILL, Pennsylf
used four or five times over: first, reSard as a proper and necessary Jnvesto]
rs shares have gained
fn

•alism probably has
depended for
to pay wage increases
4ts growth on this method
more
•han has been
benefits:to union
generally
it.

ing

out

it poration taxes. Only a small part
Steel- of it would be recovered in in¬
corporations and to stimulate the workers' Union had had their way. creased taxes from the workers,
development of more small and ^ w°uld no„ doubt be reversed The Treasury already faces a defo

mone-

com-

deficiency it would probably cost the Treas-

may

with

?_timVreXzethat adopt!

or

official has said it would cost

per

that

15

a

0f c0rporation profits before taxes,

That price and profit

up

controls, why should union
ieac|ers feel responsible for rising
tary

may in time recognize that

than

hour wage increase and

only half that, 25c an hour, and
of if all corporation wage and salary

was

cor¬

porations only paid out more of
their earnings in cash
dividends,
then they could sell all the stock

pany

former 50c

The main

and

_

cover the cost workers got it, most of whom have
steel capacity at the same grounds for asking it as

new

costs.

inflation and wage

The wage package demanded by

many

the then-level

on

major companies

of

plants

capacity to

1S arguable^ at all only if it
capacity before taxes. Claim-

per

a

prod-

your

..i.

more

vised to

anything

steel company,

a

For

country,

within
reason to advance their opinions
on
how
on
how
prices should be re-

planned

you

and

management would

take

occur

that other

eom^titors "

wages,

should

the

18V2C

a

policies

unusually well, - If public
understanding of inwe will even things
up by making nation
gets on what this article
you pay higher wages than your
considers the right track
unions

national

in

efficient

unusually profitable

are

.

ucts

whole cost-of-

members

the

uses

an(j articles

" makes perhTps even'"government

more

or

because

increase.
increase.

pripes did not

building

unre-

#iecessary to finance expansion. In
this way they
hoped to prevent
the steady increase in size of
giant

the

but

justification

however,

punctured,

He stated

+w

if

first,

nrgu-

official of the CIO who became

tnat

flotations,

testified

Their

article in the February 1948

an

issue

common

depressed and

to

:

spokesmen

of

nav
pay

what price increases

-

were

firms,

living and the steel indus-

already getting top rates of

Oratory about exorbitant prof.

become

the

in

some of the ing the right to wage increases on

-

Vice-President of

market

two

facilities

new

ments

ones

tively minor.

pro-

a

increase

lts in 1945-48 was loudest from the the Steelworkers includes

new

issues of

new

the

only

on

specially chosen startingpoint is needed to make a case for

The

to

stab.Iinonsense of the basis and purpose zation agencies,,imply that infla0f a private enterprise economy:
enmnthina fnr
tion is majniy something for the
"Whenever you, Mr. Employer,
government to fix

Some

Pay>

*

...

things, if

Steelworkers-CIO.

costly

more

high

rest

trvs canacitv to
try's capacity to

been

unions

nersuading

thtfrpolicies

v

to

seems

the

constantly

ried even »

valid

no

bought at, the in
the
top
excess
profits
tax
current much higher prices, then
bracket, so 82% of any wage inthere is no reason why he should creases
they pay out of those beexpand or why new companies fore-tax profits will come out of
should go into that business.
their tax bill.
,

capital for

new

financing larger and

rate

have

profits from facilities bought long that ground today is claiming the
ago at much lower prices, in order; right to raid the U. S. Treasury.
to cover the depreciation charges Most steel
companies are probably
on

in each of those years.

the

,,

^.aS

cost

ca-

sufficiently permato
motivate
new
to
motivate
new

Among other

in¬

$2.6 billion.

creases

plant

that

Is

and

pay¬

stockholders

they

of

nne

the problem seems

than one of
getting business, financial, economic, and government leaders to
start barking up the right inflaassert is intoler- tion tree. So
long as most speeches

able if anyone else tries to do it.
It is illegitimate, because car-

fring™

>

and

in¬

$60 billion and their
to

The

their

profits

nent-looking
companies to enter the industry
old companies to expand in

From 1936 to 1948 corporations'

to

additional

nent-lnnkim.

in wages and salaries.

payments

of

be earned in each

can

on

second:

And

the increase

as

rate

men

talta

demands*

generally living

pacity (and the necessary sales
facilities) built at today's prices?

Divi¬

other hand, in¬
creased 2%—by only $100 million,
l/360th

have

What

be:

should

the

on

ments

crucial

adequacy

ta

and

1945,

2V2 times the 1936 level.

dends,

or

factual

the

taxes,

corporate

increase to 1945
or

profits

de-

grounds
cost of

about the excessive size of

Today

Steelworker

er Pri?es

It

Despite all the declamation

(f)

(excluding
compensa¬
their
officers) rose

of

4936

prices for

questions about profits to measure

porations
a

and
ana

materials,

Adequate Profits After Taxes

of the employees of business cor¬

«£.

materials

industrial

iPoc

Step

Next

The

At this stage

on the
basis
its customers' capacity to pay,
is indeed "charging what the traffic will bear," which union spokes-

of

J0^ge7nc?elLfand\X-

arguments,

Department

Commerce
(1951
edition, Table
12), total wages and salaries, plus
supplements to wages and salaries

tion

of

inescapably, in rising
the scarce goods.

ership.
estimates

employ the stead-

in

companies'

of

of jobs to

Issues

present

a

many

prewar

The

shortage of capital for industry
and agriculture-m Jack of expan-

Thursday, January 24, 1952

.

.

demands determined

T*\e

first to feel the hardships of

the

have

.

the State Legislature.,'

•

VA.

0^» whether the seller is a busi- NET ASSETS of Broad Street In- NET ASSETS of Whitehall Fund
ness^ an industrial-union, or a vesting Corporation totaled a rec- reached, a new high of $2,215,740
craft union- when an industry ord $24,250,467 on Dec. 31, 1951, on Dec. 31, 1951, a 54.1% .above
even approaches getting in that .according to its 22nd annual
position toward the public. It is port...
"
; ;
'
\;

re-

the $1,437,427 reported a year

lier and more.than doubled $1>

Number 5084

Volume 175

.

062,838 at the end of 1949.
tinued sale of

shares

new

important factor in
growth last year.
The

Con¬

page

5

/

.

/

year

the

Fund's

the

when

ago

investments. Adding
back that distribution, per share
asset value increased 9.3% during
.the year.

."

Dividends

in

share

a

,

The State of Trade and
a

■

Industry

1951

invest¬

totaled

80

compared with 84

as

cents in 1950 and 73 cents in 1949.
Whitehall

Fund

began

opera¬

preferred

and

stocks

common

Diversification

stocks.
between

of

assets

these types of securities

is governed by the fundamental
policy — which can be changed
only by majority vote of the
shareholders—that
of the

least

at

value

market

of

25%

gross

sets must at all times be in

as¬

cash,

bonds and/or preferred stocks.
Fund's 4%-year history,

the

net assets have been about

distributed

between

evenly

senior

hold¬

ings and common stocks. During
this period, per share asset value,
adjusted for distributions from
realized gain on investments, has
shown an overall growth of 37.2%.
It was pointed out that White¬
hall
Fund's
operating
expense

Continued

who

Iron

again the past week for the third ■'
up approximately 7% over the
previous week. It was, however, about 45% under the like period
of 1951, according to "Ward's Automotive Reports."
Steel Output

output

Scheduled to Gain 0.7 of

Relief from the steel shortage may

a

general trend of food prices at the wholesale level.

Wholesale

Commodity Price Index Declines 3.9% Below
Like Week of 1951

Movements

corner,

Grain markets

slight easing here and a slight easing there, this
notes.
At Chicago, shops which fabricate structural steel report new
inquiry is off. Also at Chicago, the demand for cold-rolled carbon
steel sheets is noticeably easier. At Seattle, merchant bar demand
is slow. At Los Angeles, warehouses say inquiries are depressed
a

factors.

trade paper

that the "heat is off" fabricators'

and

demand

for steel.

turn

where
want

consumers
or

instances

these

to

are

can

At San

cite dozens of

definitely not getting all of the steel they

need, and orders placed some weeks ago are sufficient

futures

rated

of

as¬

1%

of

among

com¬

panies in an arrangement where¬
by the extensive research and ad¬
ministrative

facilities

of

Union

Service Corporation are available
at -cost

pro^rated according to
assets, the company has access to
facilities
that
are
substantially
greater than would be possible if
it

maintained

and

its

TOE

organization.

PRESIDENT

Fund,

Harry

Affiliated

of

Prankard,

I.

2nd,

announced at the annual meeting

.of stockholders last Friday that at
-Dec.

1951 the Company had
net assets of $169,605,753 as compared with $116,758,350 a year ago

.

31,

that

and

stock

$4.76

was

the

of

Share compared
share a year earlier.

-with $4.66 a

During

value

asset

net

the

the

year

realized

security

holders

increased

a

Company

share of net

profits.

Share¬

57,703

from

at

the end of 1950 to 81,204 on Dec.

'31, 1951.
Natural

of

Re¬

Fund have crossed the $3,-

"•000,000 mark and are now $3,075,000, the highest in the Fund's his¬

-

tory,

Frank

Valenta,

L.

this

that

Presi¬

Mr. Valenta

dent announced.

said

record

new

'

represented an increase of $514,over the $2,560,366 at the close
Of the Fund's fiscal year on Nov.
•634

30, 1951.

that

the

-

'

Number df shareholders has in¬
creased to 1,800—also a new high.
"The Fund

now

has investments in

Trust

Boston

of

were

approxi¬

€00,000 from $6,807,000 at the 1950

.year-end.
Part
v

:

this

increase

is

ac-

31, 1950 to. $25.90 at Dec1. 31, 1951.
The Trust, which began opera¬
tions

assets
r

*

of

counted for by an increased value
of the shares from $24.07 on Dec.

on

May

of $20

commence

14,
per

1948 with net
share, did not

continuous
offering
The increase

until May 29, 1951.

r

under

an

option

take the capital

to

gains distribution
•"in shares or cash.
^
\
"■:

;r

steel




flours

from

broadened

Domestic

was

by

a

this, buying

featured by heavy purchases

leading chain

baker at the
cautious with a strong

was

Business in roasted and green

considerably last week.

Demand

accele¬

was

raw

prices displayed

sugar

an

easier trend

as

the

dropped to new lows for the season.

week's

last

industry

production

of

Cotton

will

2,051,000

tons,

was mostly steady in moderate trading.
Live hog prices
quite firm with receipts holding about equal to a year agOi.

were

companies having

entire

Electric Output Eases in Latest

irregular. Declines in the latter part of the week,
profit-taking and a technical reaction from

was

resulted largely from

as well as continued slowness in the gray goods
Spot sales in the ten southern markets expanded sharply
last week to a total of 225,100 bales. This was more than double

recent advances
market.

or

the year-ago volume of 104,600
in the same week a year ago.

bales, and slightly above the 223,900
Consumption of cotton during the
December period, as estimated by the New York Cotton Exchange,
totaled 675,000 bales, compared to 731,000 the previous month, and
785,000 in December a year ago.

or

.

Week

Trade Volume Aided

distributed by the electric light
and power industry for the week ended Jan. 19, 1952, was esti¬
mated at 7,539,879,000 kwh., according to the Edison Electric In¬

by Promotional Sales Holds at

,

* '

Previous Week's High Level
merchants conducted forceful

As

stitute.

promotional sales in many

parts of the nation, retail trade in the period ended on Wednes¬
total

125,764,000 kwh. less than that of the
631,061,000 kwh., or 9.1% above the total
output for the week ended Jan. 20, 1951 and 1,498,721,000 kwh.
in excess of the output reported for the corresponding period two
current

It

was

day of last week, was sustained at the high level of the prior
week, according to Dun & Bradstreet, Inc., current trade sum¬
mary.
However, it failed to equal the unusually high level of u
year ago when sales volume, boosted by scare-buying, set a new
record. Shoppers generally responded quite avidly to substantial,

was

ago.

reductions of standard merchandise.

Carloadings Show Further Gains in Latest Week

Total retail dollar volume in the period ended on

fr.eight for the week ending Jan. 12,
1952, totaled 742,757 cars, according to the Association of Amer¬
ican Railroads, representing an increase of 129,977 cars, or 21.2%
above the preceding New Year's holiday week.
The week's total represented a decrease of 40,258 cars, or
5.1% below the corresponding week a year ago, but a rise of
113,214 cars, or 18% above the comparable period two years ago,
when loadings were reduced by restricted operations in the coal
Loadings

fields.

v..

•>

'.

of

revenue

was

estimated

be

to

from

even

with

to

below

4%

Regional estimates varied from the levels of

a

Wednesday
a

year ago

year

ago.

by these;

percentages:
New

England, East, and South 0 to —4; Midwest —3 to —5;

Southwest —1 to —5; Northwest and Pacific Coast +2 to —2.
In preparation for the Spring season, wholesale buyers placed
increased volume of orders in the week. The total dollar vol*

an

ume

Advances for Third

©f wholesale orders continued to be

of

;-t.J

V

Automotive Output in U. S.

year

a

kets than

slightly higher than that
Commitments for defense needs helped to bol¬

earlier.

ster volume.

More buyers were in attendance at wholesale mar¬

in either the

preceding week

or

the comparable week

in 1951.

Motor vehicle production

in the United States the past week,

according to "Ward's Automotive Reports," rose to

Department store sales on

countrywide basis, as taken from
ended Jan. 12,
1952, declined 13% from the like period of last year. In the pre¬
ceding week a decrease of 21% was registered below the like'
period a year ago, but for the four weeks ended Jan. 12, 1952,
sales declined 4%.
For the year 1951, department store sales
registered an advance of 3% above the preceding year.
:

91,744 units,

the

compared with the previous week's total of 85,630 (revised) units,
and 152,783 units in the like week a year ago.
Passenger car production in the United States rose last week
for the third successive time for a gain of close to 7% above the

previous week, but it was still about 45%
1951.

below the like week of
;

\

■

Federal

Retail

the current week was made up of 67,288 cars
and 24,456 trucks built in the United States, against 62,590 cars and
-23,040 trucks last week and 123,118 cars and 29,665 trucks in the
comparable period a year ago.
Canadian output last week declined to 3,792 cars and, 2,911
Total output for

Reserve

trade

Board's

a

index for the week

in New York last week

was

considered normal

by trade observers, but when contrasted with the like 1951 period*
when

scare

buying held

sway,

an

estimated decline of close te

16% was recorded.

According to Federal Reserve Board's index, department store

trucks in the preceding week
and 2,432 trucks in the similar period of a year ago.

trucks, against 3,995 cars and 3,116

sales in New York City for the

and

decreased 19% below the

6,602 cars

22,569

shareholders

Aside

world contract

The amount of electric energy

f

Business Failures Dip
-

7

above

shares represents net
sales of 19,323 shares since that
time and 3,246 shares issued to
of

wheat

Winter

Spot
quotations scored substantial gains, reflecting a tightening
position due to revised estimates of the Brazilian crop.
values declined, following early firmness, to close slightly

Cocoa

Successive Week

mately $6,800,000 at Dec. 31, 1951,
an increase of approximately $1,:

of

108,537,670 tons a year. A month ago output stood at 101.4%, or
A year ago production stood at 100.9%, or 2,017,000

Shareholders'

of

ASSETS

a

lower for the webk,

tons.

»ferent natural resources fields.
NET

rate

capacity for the

2,027,000 tons.

74 companies operating in 12 dif-

•

operating

point

years

unsettled

statistical

Steel Institute announced this week

98.7% of rated capacity which recently was revised upward.'
The industry's new rated capacity is 2,077,040 tons a week,

The

was

by the threat of another dock strike in New York.

coffee

93% of the
be 99.4% of
capacity for the week beginning Jan. 21, 1952, equivalent to
2,065,000 tons of ingots and steel for castings, an increase of 0.7
a

Corn

Lard

American Iron and

steel-making

of

mild increase last week.

a

resistance to forward commitments.

"Steel."
The

some bullish:
trading due in large part.

business to expand as expected after the
Marketings of wheat at principal western"

The domestic flour market

hard

week-end.

months, keep a close watch on the volume
actually being placed now.
Even in structural steel, currently one of the tightest spots,
there's an indication that the second half of the year will bring
an
easing, this trade weekly asserts. Pittsburgh mills, where
structural shapes are still in very heavy demand, think they will
be looking for business in the last half of 1952 unless the govern¬
ment increases allocations for new building programs, concludes

preceding week.

ASSETS

sources

:

of

a

distributed 44 cents

-NET

past week to

ter and

research

own

administrative

active

the

on

coffees

of orders

low

51/100ths

of

year.

less

Chicago Board of Trade dropped moderately the
daily average of 39,000,000 bushels, compared to
43,000,000 the previous week, and about 40,000,000 a year ago.

to

of steel in the next few

is

average value

1951

new

in

Stocks of corn on farms on Jan. 1 were reported at 1,919,000,000 bushels, or about 187,000,000 bushels less than a year ago
at this time. Trading in oats was more active with prices influ¬
enced largely by the action in wheat and corn. Trading in grain

cases

tion with other investment

in

whole moved lower despite

a

Export trade was light and shipping demand was only fair.
Primary market recejpts increased sharply over a week ago.
j

investment com¬
panies. By virtue of its participa¬

ratio to the

downward pres¬

prices depressed as the result of liberal receipts and prospects
for continued heavy shipments from producing areas. Most of the
current receipts are reported of high moisture content and selling
at widening discounts.

for second quarter, accord¬

you

of the

terminals showed

ing to "Steel."
contrast

a

with

warehouses report stocks are becoming better daily.
At Boston,
carbon steel sheet and strip are easier, notably cold-rolled strip

In

as

Wheat declined

to the failure of export

Francisco, warehouses report competition is increasing on some
items and price concessions are being made. At Pittsburgh, most

for which mills have some space open

irregular last week with

principal wholesale markets. The daily whole¬
sale commodity price index, compiled by Dun & Bradstreet, Inc.,
declined to 308.39 on Jan. 15, from 310.66 the week before. It
compared with 320.92 on the like date a year ago or a drop of 3.9%.

predicted repeatedly in the last several months by high officials
in the nation's steel companies.
Now from coast to coast come
of

were

noted in many

sure

"Steel," the weekly magazine of metalworking, the current
week. The end of the shortage in the last half of 1952 has been
says

reports

food

Bradstreet1

The index represents the sum total of the price per pound
of 31 foods in general use and its chief function is to show the

Point This Week

be just around the

leading wholesale

The index for Jan. 15 fell

$6.57, the lowest since Nov. 7, 1950, when it stood at $6.52. It
a week ago, and marked a drop of 6.7% from
the year-ago figure of $7.04.

Age."
car

the

compared with $6.61

Automotive production rose

consecutive time with

of

some

to

picture several months ago, but others have taken up the slack,
"The

in

decline of 4 cents in the Dun &

a

wholesale food price index last week.

the biggest sheet converters, started dropping out of the

were

easiness

markets resulted in

keep steel mills running at capacity for all of the present quar¬
probably through the second quarter, this trade paper adds.
But don't let that high rate of operations be your only guide,
it cautions. Since government controls on steel went into effect
the rate of mill operations at any given time have been determined
by the volume of orders placed six weeks or more earlier. So to
get a clue as to the rate of mill operations and the availability

sets

were down 32% from 231 in
57% from the prewar total of

Previous Week

eering changes and tardy tool deliveries have slowed the full im¬

tions

on March 31,
1947, accord¬
ing to Francis F. Randolph, Chair¬
man of the Board and President,
with the objective of providing
in one security a rounded invest¬
ment program embracing bonds,

1950 and

Wholesale Food Price Index Continues Decline of

*

pact of military orders and considerable tonnage delivered for
military use is piling up in inventory.
Demand for conversion ingots has improved. Auto companies,

concludes

from

paid

income

In

167 occurred, they

comnarable week of

31

367 in 1939.

increased

ized gain on

cents

from

Fund's

during 1951 to
$18.89 from $18.20 despite a dis¬
tribution of $1 a share from real¬

ment

Continued

(401)

an

was

the

of

value

asset

shares

The Commercial and Financial Chronicle

.

.

.

Commercial and industrial-failures

ended Jan. 17 from 164

inc.,-reports;

Slightly

;

;

,

:

registered below the level of a year ago. For the year
1951 voluihe advanced 4% above the like period of the preceding

of 7% was

dipped to 158 in the week

in the preceding week, Dun & Bradstreet,

-While.casualties were, only slightly lower than a

iyg£kly period ended Jan. 12, 1952,

like1 period of last year. In the preceding week a decrease of 25% was .recorded below the similar week
of 1951, while for the four weeks ended Jan.. 12, 1952, a decrease

—■/?. '

year.
-•

•

...

•

J

-

-

V

♦J*.''-: »'■■■

.

-V"

'
"■

"v

"

:

■

38

The Commercial and Financial Chronicle

(402)

cussed

i omorrow s

^

Markets

this, is the question we'll
have to face sooner or later.
Last week I closed the column

Says —
I had

hardly taken the

pa¬

Tuesday (that's when this col¬
umn
is written
Tuesdays)

"I

that

statement

for

market is in

the

think

out of the typewriter last

per

the

with

By WALTER WHYTE=

a

When that was writ¬
market sentiment was

rally."
ten the

bearish.

—

Now the market is up.

market started up,

when the

thereby changing the psycho¬
logical picture which is such
an
important market factor.
«

*

*

The Presidential

budget of

$85 billion will be the subject
ing
of much heated debate inside
little point

There's

halls.

there'll

it;

entering

my

Congressional

'

better and louder

in

be

spokesmen

for

probably another week or
What will

so.

out of it

come

is another

thing.

has

been

the

in the

From where I

months ahead.

everybody

Just

sit, I can't see what difference that the market is
there will be who the next

who will
the official choices of their

President will be, or
be

seems

things will be heatedly dis¬

feeling
one-way

the

are

turn around on itself and
j'<

-

into

i-s

simple lan¬
the present

more

guage, I
think
market will advance

and

more

Pacific Coast

be news)

may

it will turn around and react.

I've

Orders Executed on

Pacific

Exchanges

Coast

mentioned

time to time

will

lieve

Schwabacher & Co.
Established

INVESTMENT

1919

New

York

Stock

York

Curb

Exchange

Francisco

San

acted

that the

months

Chicago
York

New

Cotton

Wirts

Traxie

Exchange

Teletype NY 1-928
to

Offices

Principal

Francisco—Santa

San

than

the

are

They

are

the

By

amuse¬

presented

as

those of the author only.]

Monterey—Oakland—Sacramento

the

speculative

trading

NASD District No. 2

Steel...

S.

The

relative

stability

of

that

can

we

price controls.

prices

areas,

In

cannot

persist for long.

hold

the

continue

controls

Prices

and

The

Office

has

made

past

Price

of

It

Stabilization

So. Pacific

developing
to

Defense

price

When

granted.

Act

the

summer,

1950

to

N.

Y.

Central.@18%5

Subject to prior sale

Explanatory

or

pamphlet

mos.

137.50

100.00

price change
on

THOMAS, HAAB & BOTTS
Association, Inc.
50

Broadway, N. Y. 4, Tel. B0 9-8470




the

of

defense

must maintain

effort,

and

fair relation-

a

ship between the two.

increase

will

and

sacrifices

many

main

to

private

J.

Evans

Frank

F.

Walker

an

cus-

easy

cial

become

much

more

Special'

It

a year

commodities,

and \ the
employment in

civilian

were

beef

bulwark of

strong

tional bank
and

ceilings

by

distribution

and

of

thus

helping

amendment
pattern,

a

available

slaughter-

among

areas,

this

providing

the

the-

upset

forced

to

very

,.y w^en

Evans

pany

FRANCISCO, Calif.—E. J. ford
of

First

and

California

Frank

Dean Witter and Co.
chairman

arid

Com¬

Walker

F.

were

of

elected

coi-chairman

re¬

spectively of the National Associ¬
ation
trict

of

Securities

2,

which

Dealers,

includes

Dis¬

all

of

continuance

the

of

Temporarily,

improved, but

beef

forward to the relaxation and rem°val of many kinds of controls
H restrictions. In the meantime,
a
<° +us milst -10in ln
vaJ* e^~
* *° safeguard our national

(10)

Raise

the
we

af¬

To achieve

jectives,

these

defects

in

price

control

legislation should be

rected

and

the

should

law

cor-

be

strengthened when it is extended.
We

cannot

afford

to

summarize

gamble fur¬

belbW

^

™

the

•-

legisla¬

contained
x

x

this Economic Report to promote the defense pffdrt. strengthen
.eco"0^?]^; an^ maintain economlc stablhty
(1) Renew the Defense Produc¬
Act for

and

expansion

Nevada.

Howard Brooks

Opens

BIRMINGHAM, Ala. —Howard
L. Brooks is engaging in the secu¬

Although
only

a

part

Control

rent

of

controls

the

total

cover

rental

housing in

rities business from offices at 1660

the country, they are
of great importance in stabilizing

Valley Avenue.

rents

in

many

major

industrial

and

to

the

control

of

prices and credit,
(2)

Provide

continued

(11)
and

as

a

benefil
im¬

Authorize

Federal

aid

tc

increase

aid

for

school

con¬

struction and operation in critical
defense areas.
,

(12) Authorize

Federal aid tc
assist medical education and
pro¬
vide for strengthening local

Int. Resistance Stock

Offer Oversubscribed
The
of

public offering on Jan. If
325,000 shares of common stock

of

International Resistance Co. al

$5

share

per

Co.

Inc.

& Co.

by F. Eberstadt&
Zuckerman, Smith

and

oversubscribed and the

was

books

closed.

International

leading manufacturer
used

in

electronic

is'

a

resistors

of

and

electrical

devices.
j

The

offering

included

250,000

shares being sold for the account
of the company and .75,000 shares

being sold for the account of three
stockholders.
Proceeds
shares

from

the

sale

being sold by the

be

used

to

the

the

of

company

iol

extent

retire short term bank
the

balance

will

be

working capital.

Capitalization
pletion

following

com¬

the

of

sist of

offering will con¬
1,317,163 shares of common

stock.

The

traded

in

market..

company's
the

-

$10,860,594.
21,
836,553

after

ended

to

Oct.

shares

are

over-the-counter

',v;f *"

income

weeks

'

taxes
Oct.

$655,345
Current

1951
And

for

21,

on

1951

sales, of

assets

amounted
current

the

as

to

of

$.4,-

liabilities

amounted to $3,206,836, indicating
net

current

assets

of

$1,629,717.

In

1951 the company
paid divi¬
dends of 40c per share on its com¬
mon

stock.

step

toward

Now
LOS
firm

military

and economic aid' to free nations;

and,

of

other

help meet school operating costs

strengthen its provisions, particu¬
larly those relating, to production

Rent

California

level

make
our

two. more years, and

inflation.

ther with

in

employment insurance system.

amounted

ln

tion

requirements

system of oldand survivors insurance; anc
strengthen the Federal-State un¬

42

Legislative

recommendations

.

stabilization ob-

our

I

tive

the

age

Net

Recommendations

situation

cannot

to take another chance.

the

and

provements

security.

of

to

powers

reserve

payments,

expenditures

Summary

rate

authority to control
margins for trading on commodity
exchanges.
;

decline, we may confidently look

ceil¬

spe¬

tax

provide

will

^

by

;

Provide

the establishment of

a

and

Board of Governors of the Federal
Reserve System to impose addi¬

atten-

wiH t>e plenty of food and other

essential

privileges,

(9)

a

of strain. We
must expect this, and prepare to

W? highest

.

th

year

increases.

anti-

strong

a

is

for the economy.

year

is going to be

last

health services.

That

gain.

program.

reach

necessary

margins ; for -bear

dollar in the price paid by

a

ings.
has

SAN

to

proposed

they must be

—

of

purpose

inflation

goal

by eliminating loopholes and

imposed, so as not to
inflict public hardship in order to

re-

was

are

are

revenue

equitably

support

power

consumer.

the
E.

support

public

Equality of Sacrifice
Where

some—inconveniences
and
distributors, thus virtually guar- hardships. For most of us, the
anteeing that every dollar in cost hardships will be minor.
There

request

Members Put A Calls Brokers & Dealers

peak
we

high cattle prices, and endangered

137.50

137.50

a

inflation, we must
firm price policy and

firm wage oolicy throughout the

the

July 26, 1951.

percentage

quotas

187.50

Airlines@31% Mar. 10

effect,

weakening

137.50

United

legislation; provid
program fo
perishable commodities; and mod

ened.

Sec.@56% Mar. 24

100.00

inflationary

control prices,
instead of being tion is also being directed toward
strengthened, was seriously weak- the problems of small business

distribution

275.00

maintain
a

com-

legislative author-

Production

last

newed

fall,

Corp.. .@22%May 26
Schenley Ind..@33%Mar. 14
United Fruit..@61
Feb. 25

outweigh

few other specialized

a

avoid

cover

and

hold the

to

are

be

must

150.00

Radio

are

which

can pro-

simple,

regulations

we

850.00

...@63% Feb. 14

possible

To

be held

industries

4

Arix.@19% \pr. 9 137.50
Sperry Corp.. .@32
Jun. 2 137.50
Chrysler
@67% Jun. 23 287.50

incentives

any

balanced

a

can

adequate

fair

New Mex.

firmly administered,

There

_

But if

the

100.00

and

during

progress

toward

is

enforceable

100.00

7

to

taxation and other restraints which

increases,

of cost

great

year

firmly.

100.00

Mar. 31

way

general, high enough problems with' which the Wage
ample incentives to stabilization Board must deal,

avoid black markets in meat. Last

@54% \pr.

fair

a

are a

The fair way to impose the
burden of national defense is by

vide

175.00

Oil...@21

support

workable

because

fense.

the effort to

line.

price

absorption

the

living

equity,

are, in

provide

able

simple

Greater

strengthen

to

must

of

impose the burden of national de-

than to weaken them.
We

in the cost of

At this

mobilization

prudent

the

price inflation is not

to

on

from

of

pressures can be equitably imposed.
Wage
stage of the adjustments to allow for increases
program, it is more in productivity, if carefully limited

ahead.

loom

counted

be

Pac.@36% tar. 17
Service@112% Apr. 26

Oil

essential

matter

important

many

ers

Sunray

healthy labor relation

(7)
Repeal
the
sliding seal
provisions in existing agricultura
a

creases

straining at the

are

supply of.cattle

Gulf

and

uninterrupted production.

price

civilian goods,
policies of the Wage Stabili-

viewpoint
equity and of incentives.
Adjustments to take account of in-

relax

to

212.50

Mar.

the

above

zation

In others, softness exists

ceilings.
which

afford

now

275.00

L.-S. Fran.@24

far

too

and

The

prices

Mar. 21

U.S. & For.

rising

^

lMo.Kan.Tex.pfd@5l

St.

pro

concerning labor-management re
lations, so that it will not hampe
sound

available supply of

com-

Fortunately,

@40% *eb. 23
Steel...@50% lar. 13
No. Pacific...@62% lar.
7

Cities

business by

tion.

our history.v As the economy be$500,000 to
comes adjusted to the new condiloans
and
slaughtering quotas. Slaughtering h/ms and grows in size, and espeadded to

Apr. 21 $375.00

Canadian

from

are

ment forbids

Per 100 Shares

U.

price

Still another weakening amend-

OPTIONS

Beth.

like

stabilization,

costs, and should be continued. It
also helps to prevent buying power

Price Conrol

V.

the

Chem..@100

small

Board are designed to. put
we
have had no runaway com- a brake
upon excessive wage ad- ify the tax on unallocated reserve,
modity markets recently, but it is justments, while at the same time of farmer cooperatives.
desirable to grant this authority
recognizing that some adjustments
(8) Provide at least enough ad¬
in advance of any such situation, jn a free and
dynamic economy ditional

than

Mons.

the

on

exchanges.

tomary

Elects Evans, Walker

PUT

Wage

recommendation

requires the maintenance of

Fresno—Santa Rosa

SPECIAL

Aid

we

Another weakening amendment

\

Barbara

(3)

u

advantageous terms

pressure

and those who are unemployed in
amendment local areas, so that a limited segoils.
:
permits any producer or seller of ment of the population shall not
[The views expressed in this services, regardless of his need, be made to bear an excessive part
article do not necessarily at any to pass on all increases in all costs 'Of'the burden of national defense,
time coincide with those of the incurred
from
the
first half of
The'-year 1952 is not going to be

Chronicle.

New York 5, N. Y.

14 Wall Street

COrtlandt 7-4150
Private

(Associate)

Exchange

of

Board

ahead,

Secretary of Agriculture

modity

ity

advance.

any

these

groups

mutually

Small Defense Plants Administra

use

authority

be authorized to regulate margins,
in
order
to
head
off excessive

I be¬

ones

more

an

export to

viding the necessary funds for th

problem is control of

upon

One

Exchange

Stock

do

in

on

margins for trading on commodity control, cuts the inflationary spiral
exchanges. The Congress has not ancj limits the rise of prices and

line,

ments, non-ferrous metals and

SECURITIES

Members

New

market

European

which

-

related

A

from

here

the

as

stocks

the

repeat

cer

other countries could

continued,

be

goods

imports of

is being made of the

modities.

won't

I

tain

•(

i>

Abt

Production

our

provided last July by
credit the Congress to reinstitute rent
controls, where necessary, in crit-

these

considerable

individual

Securities

n

i

should

and

areas,

Vigorous

administrative

then, for no apparent reason price structure which

(though there

J

n

producers, and to permit consider-

Put

Defense

(4) Provide for certain urgentl
ical defense housing areas, includ- needed
development projects, par
ing areas around military posts,
ticularly the St. Lawrence seawa
for excessive expansion of bank Thus
far, full rent control has and
power project.
credit. I repeat my earlier recom- been, or is about to be, reimposed
(5) Provide for the constructio
mendations that the powers of the in 96. of these areas, and will be
of needed housing and
community
Board of Governors of the Federal reimposed
in
other
areas
as
facilities in defense areas.
Reserve System to impose reserve needed,
(6) Revise the basic legislatio
requirements be enlarged.
Wage Stabilization

to

'

>!?.

these

recommend

setting

the

face

profits

back.

come

in

During

may

street will run into a cul-desac,

to me that
the proper Congress me n
would be the more important.
However, all these and other
It

parties.

a

chances

the

street

as soon

starts

full

of

discretion

I

during most of
1951 was enmar¬ couraging. But this does not mean

this means the

unto themselves.
as

control

to

credit.

terms.

continue.

probably go higher.
The hat-in-the-PresidentialIt might be pertinent to re¬
ring department will be an¬ mind readers, however, that
other choice morsel that'll be
present day markets are a law
chewed and rechewed

u

a new

started

will

ket

of

the

revenues

Once

it will

are

authority

restoration

.

trend

In effect,

*

*

will continue

confusion

pounding it in the weeks to chances
come.

believe

I

confusion.

is

such

outside

and

Both

have advanced to
new
highs for the move. In¬
stead
of
a
mass
following
which, under such circum¬
stances, would be attracted to
the market, the general feel¬
averages

the

forms

Thursday, January 24, 195

.

which restricts
.

market in

about the

What

.

of

14

page

Truman Forecasts Huge Budget Deficits

.

#

all

Walter

=

Continued from

by everybody from
Washington to the barber
shop.

.

removing

trade barriers, repeal ^Section

Maloney & Co.

ANGELES,

name

of

Calif. —The

Maloney

&

Wells,

Inc., 650 South Spring Street, has
been

104 Inc.

changed to Maloney & Co.,

Volume 175'<• Number 5084

Continued

from

.

billion

15

page

(403)

The Commercial and Financial Chronicle

.

tance

The President's
f

held

been
still

to

have

I

been

levels, and
expanded,

sharply reduced
exfor
those
programs

penditures
which

current

have

otners

Budget Message

be deferred

can

or

elimin-

ated, even though these programs
brmg clear benefits to the Nation and would be highly desir-

•

the

dollars

result of
legislation
improving the equity of last year, we are now confronted
system.
The legislation with the impracticability of fiby the Congress late last nancing Government expenditures
additional

of

and laid stress on the

enue

of

tax

enacted

as

a

Pittsburgh Exchange

revenue

Elects Fauset Pres.
PITTSBURGH, Pa.—The Pitts¬

will contribute little more currently out of taxes for the next
burgh Stock Exchange has elected
than half of the amount I recom- year or two.
the

the amount of new obligational
authority available for the current

year

dollars of appropriations quate
defense
have
become quickly
as
to liquidate prior year contract clearer. For the fiscal year 1952, meanwhile,

billion

_

_

* u

+

According to present Indiestions, total Budget expenditures

basic legislation.

.

J m£ch

f:>-.

concern

a's

the

*eed

Fauset,

with the situation

it develops,

as

Leonard

Treasurer:
William

and

Directors:

that

it

I

recommending

am

that

imperative

m?n+
ment

each

makes

reimbursements to appropriations
an(l miscellaneous receipts. Some
°f the more significant adjustments in fee schedules, however,
cannot be made without legislative authority. The legislative
Pr°P°sals to Ka diiKm4a 4K
effect these adjustttrill
vv»

avtf n

will

ments

submitted

be

depart-

e n

when

embarked

we

encourages

Holders

Kansas

lor

is

Department

basis

nrecent

of

tax

dollars at the beginning of the
current fiscal year to 260 billion

of one new share for each six
.

th!

w

9°^*J?.\

billion dollars by June 30, 1953—

JPubllcly. 100>000 shares of

f
t 1 .tnrv b
A
tne present statutory limit.

fruuSin

u

curren^

and

taxation,

that

should

Congress

we

cj€s jn the

new

4.50% cumulative preferred stock
. — Q()

financing and the

,

,

economic

the

our revenue taking other steps
purchase savings
next. The

bonds and by

to increase new

The millions

about- savings.

risks involved in this course,
mili- to the Public debt. This policy is But economic growth will convear
imP°rtant t0 the preservation of tinue to increase the productivity
b4n the
strengtb of our Gov- of the tax system in future years,

oroerams

manv

are

:

New

.

"the

;

to

tax

.

-

provide for further progress
reaching our national ob-

thority

for

new

the

obligational

fiscal

year

I

1953.

;

the

by

stockholders

Fvnpnrl'turM

x

xx,.

$32,235

$29,324
740

14,388

22.900

27,800

9,046

9,744

624

575

demand

Direct taxes on corporations:
Income and excess profits taxes

;

770

,

.

.

The

r>rn„pp,je

n

•

qcfinni;

. +

chnrftprm

•

of

,

:

cannot,

be

however,

•

x

year

for

com*

-

Tlpnr«flirpQ.

;n

Insurance Contributions

Federal

3,120

Railroad

Act-

| Fiscal years.

10

Ins. Act

740
10

•;

690
11

'

;

1,598

.

Appropriation to Federal old-age and

—3.850

—4,030

I

General

-2,106,.:—2,510

—2,709

j

i

f,

^^84^3/.■■•»^.ff2;680

70,998

NOTEr—Estlmated' receipts-fdr.il95-J> exe)#)e^ew :tax -proppsajs.




^ugh^fhe'^sale
first

The

mortgage

bonds.

preferred

new

stock

initially redeemable at $103.50
to

and

101

at

after

and

on

ir
per

prices scaling down
10

years

plus accrued dividends. Dividends
of

40

cents

per

share have been

dTsWbu-

function,'

-i

xU

■

northern

m

wjjjch

fiscal

year

supplies

Iowa

includes

with revised estimates Kansas City

current
..

company

continual

and

an area
City The

in

Mason

area

growth

is experiencing

in

importance

as a manufacturing and distribution .center
for
large

..--v,';■'A

trading

A

areas.

western

rail

and

transportation center, it

1952

a

Recom. new

1953

electric

including Kansas City, Mo., and

es-

v-

•

x

The

service in Missouri and Kansas,

It also

oblig. auth.

natural

serves

air
as

gateway to the west and

southwest.

;'v-

Est.

Est.

for 1953

$39,753

$51,163

4,727
176
1,685
2,051

7,196

10,844

8,238

751

833

1,171

2,152

1,643

Operating

$52,359

1,521

—

in

the

12

months

3,237

2,694

1951,

1,408

1,478

1,327

affected

in

240

246

259

community

881

678

1,421

j

electric

and

i

—

602
115
2,380

—

were

are

$35,042,000
Oct. 31,

ended

expected to be favorably

3,082

228

—

of the util¬

revenues

ity, which aggregated

650

——

resources——x_.

—

the

future

steam

by higher

rates

which

authorized in the latter part

for

contingenices

Adjustment in daily Treasury
Total

^

624

688

2,662

2,578

5,339

5,166

4,197

4,181

1.209

benefits^

government

238

2.680

1.353

1,484

1,443

generating

5,714

services and

Interest
Reserve

^

whkH^

ditional

—

—'——
agricultural

and

and

Veterans'

.

—3,120

Budget receipts

foreign

development
Education and general
research
Social security, welfare and health,—

'

.

and

i

Housing
:

X)0

recom-

$20,462

—

resources

Agriculture
Labor

15

Proposed legislation
„

1953

the

Actual

;

.

relations,Finance, commerce and industry———.
Transportation and communication——,,—
Natural

1,598

1,629

Existing legislation

aPportion

t t
f f t

■

Function

Military services
International security

i Miscellaneous receipts:.

Deduct:

a

j

1951

269

aHrii

t
0 "
pr0Pertv additha
expansion of its facilities in 195r
m
t approximatelv $22 000 of
of ad-

t"

In millions]

4,030

257

577

Retirement Tax Act

Railroad Unemployment

3,850

233

Unemployment Tax Act

fnr

expenditures"

^ construction

1953, clas-'

-Expenditures-

Federal

raimhl,rco

+„

frpacnrv

and jn
th

EXPENDITURES AND AUTHORIZATIONS BY MAJOR FUNCTION

—--

inane

inCurred for 1951 construction ex-

It is cause for grave con-' with actual expenditures in 1951.

placent.

h-ink

es-

timated expenditures m the fiscal

■

•

expenditures'and

compares/ by major

,

requirements

business.
We

shows

table

sii'ied by major function.

Employment taxes:

/

following

?

rptirp «i^

mended, new obligational author- tion of the stock in 1950.

to

and
•

x

575

$23,365

—

Expenditures ana Authorizations
By Majcr Function; .,

producers and

adequacy of sav-

restrain

to

Anthoriyation*;

and

the close

at

6,1952.

share

One of the key fac-. ity for the fiscal year

will be the

ings

Estimated

730

taxes-____.

gift taxes____—

.Customs /_r

of

meet the investment

Excises

'

1953

1952

Estimated

individuals:

income

.

.

cQmea st^ming^rom Government
tors

8,693

and

reaction

the

expenditures.

J951

Estate

bonds.

consumers in the face of unavoid- timated

.last year that
provide at least 10

In millions]
Actual

Individual

B

attained.

recommended

'Source

•

of our defensive strength has been

re-

RECEIPTS

[Fiscal years.

Direct taxes on

Congress

on

the Congress

This is 9.2 billion dollars less than

>

The

Year.

au-

BUDGET

1950

recommendations but enacted only
How we meet the situation in
paft ^ ^ proposals j made last the meantime wm depend greatly.

T
in
jectives, 1 am recommending in
am recommending,
this Budget a total of 84.3 billion
ipptivpi

in

of

1Q51

two sep-

^ » prompny iuC°^ress ™
£95L The my wnia
sponcea

toward

dollars

in

carlv

,,

after the fiscal year 1954. Thus, to earn interest on them for anduring the the problem of financing defense other 10 years without the necesand another should be eased once the build-up sity of exchanging them for new

Congress

measures

half

latter

Obligational Authority
..

To

posed
arate

Messaee *
5

subscribed for

common stock not

stabilization program.-The Ameri-

clear

erouD

issues of the subscription period on Feb.

maturing

of

reinforce

wh?..ch

or

be

t

•

t-

pa.-

u'

aijiuu per snare. ine same group
The prospective debt increase will purchase from the utility
makes it essential that the Gov- any of the additional shares of
mU

who own savings bonds maturing
fmthe administration cf the
in the near future can also help
tarv
In the oast
to combat inflation by keeping
imD^^vements have
their bonds and allowing them to
made in the manaeement of the
ernrrenb to the success of the Moreover, I hope that world con- continue accumulating interest,
Government's
affairs
Some
of stabilization program, and to the ditions and the build-up of our rather than cashing them in at this
these improvemerds
Outlined sharin§ of defense costs fairly"
defensive strength will permit a time. Legislation enacted last year
in
the
fiml selftion of th's To carry out this policy, I pro- reducUon in Rederal^expenditures permits the holders ^these bonds

in

nrT-n'01}"

a

u.hIh

,

n

1Q

0

T

dollars by June 30, 1952, and 275

gr^fest^mphaSs1^man°efficiency should avoid adding substantially

'

.

,

r^AfrSS

P.

,

of

Light Co.

&

shares held of record at the close

of people

or

stock

common

Power

being issued rights to purchase
317,792 additional common shares
at $26.50 per share on the basis

fense program to keep our coun-The attainment of the revenue can people can help the stabilizatry sfrong( i stated that sound objectives I have outlined would tion program by continuing to

resp

Defens

the

On

of

City

are

rates, it is estimated that the public-.
debt will increase from 225 billion

self-seekers to try to

forWhich3^t^ VesDonSble^The for tJle increased defenseus to pay problem this year
financial policy required costs by not fully resolve
wh ch it
nsible.
Th

Arthurs,

City Utility
Offerings Underwritten

Borrowing and the Public Debt

gain favored treatment.

the de-

on

W.

Kansas

a
the

to

Congress as they are prepared

for

practices fa-

Congress

Addison

additional 37 million dollars in

voritism in writing tax laws, it refunding

„

Financing the Security Effort

agency of the Governfo r c ev everjr possible

the

When

&

1 iLaSk S

wjtt

I signed the Revenue Act of 1951. ernment continue to follow poli-

actual receipts for the

and

year

Barbour

Co.

£irst session of 'this Congress. & Scho.yer balance of the unex¬
has been elected to
serve
the
Some of these results are reflected pired term of the late Clyde A.
*n this Budget, in the form of an Buzza, McKelvy & Co.

c

flscal y®ar 1951.

B.

Joseph Fauset

J.

John

Bauer,

these services on a self-supporting
basis wherever practicable, in ac- Ai^hurs L.est]ran;e & Co., Keslie
cordance with the policy I first w. *oung A t Masten & Co^,
stated in my 1948 Budget Message
bear,-Keed, Gear »

new

Budget of the scope and size

&

Lynch.

ernment agencies for services to
private individuals and groups. The
objective of this study is to place

_

A

Lynch,
Moore,

Jr.,

n

will continue to be high in the be used as a means of granting
fiscal year 1954, even though speciax favors or hiding special
obligational authority way j subsidies. Glaring injustices in
decline further.
our tax lawg sbould be eliminated
their present
levels.
Finally, a
Budget Receipts
i before those with modest means
number of programs contributing
, *udget
*
are asked to shoulder additional
directly to the defense effort have
The following table shows the, burdens
been expanded—such
as defense
source of estimated Budget recongress
has made some
housing aid for schools in aerense
ceipts for the fiscal year 1953,
ine congress nas maae some
nousing, dia ior scnoois in defense
^
Pxisting tax legislation
Progress m this direction, but unareas, projects
for expansion-.of cased on existing tax legislation,
n
,
oHHpH
electric cower generation and the compared to revised estimates of bappily
it . has also added new
►portsecuriv nroeram of the Coast
receipts for the current fiscal loopholes as I stated at the time
^—-i

Charles

McK.

Bureau of the Budget, in
cooperation with the other Feddepartments and agencies,
has undertaken a comprehensive
study of the fees charged by Gov-

other programs, which
for preserving the
basic strength of this Nation, have
been maintained at approximately

Guard.

&

Vice-Presi¬

Miscellaneous Receipts

necessary

^

Steele

dent:

Many

are

Fau¬

Co.

The tax laws should not

revenue.

must be continu-

we

H.

Joseph

stability and be prepared to deal

O

'

,

President:

the

In

ally alert to threats to economic

■

"

practicable.

officers:

set,

^

stantially below the levels author-

>>

following

fiscal year.
mended.
Prudence demands that we reV118 Budget also includes 3.2
Since then, the needs of ade- turn to a pay-as-we-go policy as

-

by

partly

inadequate

authorizations.
total Budget expenditures are es,tne obligational authority timated at about 71 billion dollars,
able
in normal times.
For ex- either already enacted or recom- and
they are expected to rise
imple, many long-range programs mended in this Budget will have nearly 15 billion dollars in the
fiscal year 1953.
for the development of our nat- an important effect on expendi•
ural resources are being deferred tures in future fiscal years. Under
in order to place greater emphasis the expanding security program,
e r expected to rise thev
on
meeting current defense re- there is an extended time lag wufctTl, fall short of m/etinj M
.quirements. This Budget contains between the enactment of obli- ™endit^
funds for only half as many gen- gational authority and actua
ex- ^"952^
eral flood-control projects as my penditures.
Many months elapse n W52 and an even larger amount
Budget of two years ago
New between the time the Congress in
,
starts 011 flood control
reclama- authorizes expenditures for ships,
A pay-as-we-go tax policy is
tion and river and harbor works planes, tapks and other items of difficult to regain once we fall
have
been
limited
to
urgently military equipment and the time behind.
,
needed power projects, flood-con- when these items are produced,!
We cannot now undertake, on
'trol projects in the Kansas-Mis- delivered,
and completely paid a strict pay-as-we-go basis, the
souri
area,
and emergency re- forUnder these circumstances, dual job of making up for the
habilitation
work which
cannot the new funds authorized in one inadequate
revenue
legislation
be
deterred.
The
Federal-aid fiscal year may not be entirely
creases
hi expeiSitures immedihighway program will remain be- spent until several years later.
ately ahead.
However, there is
low the authorized level of $500''•.■For example,, of the new obligamillion, and major emphasis is fi°nal authority recommended for still time to insure more nearly
being placed on Improving the 1953, nearly half will be spent in adequate financing f0r the defense
network of roads most essential to later years.
By the end of the program as a whole. In my judgdefense and civilian traffic.
Ex- fiscal year 1953, virtually all of :m€nt this calls, at the very least,
penditures for rural electrification this authority will have been ob- for the amount of additional revand rural telephones have
been ligated, in the form of contracts enue by which last year's legisreduced.
All major programs for f°r necessary goods and services iation fell short of my recomhousing and community develop- f°r which delivery and payment mendations.
ment
outside
i critical
defense cannot be made until fiscal year.
Thg
nee
imDrovine
the
housing areas will be held sub- 1954 or later,
equity of the tax system gives me
ized

that,

cern

rev-

impor-

39

5,955

6,255

6,255

pany's system will result in addi¬

25

100

125

.t—j-l—,.

statement——i-

of 1951. In

der
70,881

85,444

84.260

capacity of

the com¬

tional income to the company un¬

—705
44,633

addition, the increased

k

a

three

Power Pool Agreement

other utilities

an

"*ith
the area.

4fr

The Commercial and Financial Chronicle

(404)

The following

Indications of Current

week

Business Activity
AMERICAN IRON

operations

Equivalent to—
ingots and castings (net tons)

Ago

2,065,000

93.7

101.4

2,065.000

2,027,000

daily

(bbls.

average

OF

2,017,000

DOLLAR

NEW

YORK—As of

6,803,000

6,553,000

6,370,000

22.113.000

22,354,000

22,276,000

20,815.000

3.045.000

2,865,000

2,523,000

9,891.000

10,478,000

10,270,000

9,598,000

8,763,000

9,786,000

128,333,000

125,209,000

114,812,000

22,628,000

connections (number of cars)

121,209,000

U.

24,172,000

28,434,000

18,027,000

BY

75,586,000

79,386,000

91,649,000

64,557,000

PARTMENT

41,857,000

44,157,000

40,574,00.)

Npvem^er

742,757

612,780

753,194

564,068

668,914

S.

CORPORATIONS

$249,214,000

$280,707,000

$139,005,000

$391,606,000

166,473,000

138,400,000

66.734,000

Ian. 17
Ian. 17
Jan- 17

82,741,000

and

State

—

municipal

Federal
'. '

•

,

••

-

-

.

31

BANK

58,677,000
24,064,000

142,307,000

91,511,000
50,796,000

72,271,600

48,027,000
24,244,000

149,460,000

coke

beehive

98,965,000

11,760,000

*9,195,000

11,470,000

£50,000

730,000

935,000

952,000

Jan. 12

151,400

*136,100

158,700

IN

LARGE

—

—

—

__

Sugar

7,539,879

*224

266

613

7,665,643

7,823,731

INDUSTRIAL)—DUN

_

oils

—

117

305

Ice

167

4.131c

Jan. 15

$52.72

$52.72

$52.72

_

furnishings

_

AND

LINTF.RS

DEPT.

—

(Er &

PRICES

M.

$42.00

$42.00

$42.00

$46.08

of

(New York)

(fcead (St. Louis ) at
Sine (East St. Louis)

at

24.200c

27.425c

27.425c

27.425c

24.425c

103.000c

103.000c

103.000c

Average corporate

19.000c

19.000c

19.000c

17.000c

18.800c

18.800c

18.800c

16.800c

19.500c

19.500c

19.500c

17.500c

96.42

96.25

96.49

—Jan. 22

108.88

108.52

108.52

________

—Jan. 22

113.70

113.31

112.75

112.19

111.81

112.00

107.27

107.80

102.46

101.97

tJ. S.

Jan. 22

103.97

LABOR—REVISED

108.70

113.12

112.93

113.12

All

2.75

2.74

_Jan.22

3.23

3.25

3.25

All

goods

2.99

3.02

2.65

Durable

2.38

—As

3.07

3.06

3.31

3.32

3.29

2.88

3.60

3.63

3.17

Railroad

3.48

3.51

3.02

3.23

3.24

3.24

2.85

Jan. 22

3.00

3.01

3.00

2.71

S1M»

456.6

Jan. 12

195,092

Jan. 12

,

Production (tons)

210,349

Percentage of activity,

Banks

2.69

458.3

460.5

530.7

§149,591

169.359

262,530

§82,568

200,151

DRUG

86

§64

86

NEW

REPORTER

§422,412

387,000

PRICE

FCR

AND

THE

ODD-LOT ACCOUNT

SPECIALISTS

ON

EXCHANGE

THE

N.

OF

146.6

146.9

147.1

short

(customers'

other

Y.

STOCK

8

Jan.

5
5

5

27,6£5

23,777

756,011

669,151

896,086

$30,372,989

$40,201,030

$52,861,134

31,030

41.954

18,712

Jan.

120

Jan.

18,592

Jan.

511,331

18,589

25,382

36,895

91

268

25,114

713,267

sales

Jan.

4,222

3,230

8,301

Jan.

507,109

542,038

704,966

(in

Jan.

$21,071,800

$22,433,856

$28,900,779

Jan.

—

133,850.

159,420

199,240

*6.00

4.64

4.73!

3.47

3.43

5.78

GREAT

6.57

£21,993,000

£34,035,000

£13,524,000

*$253.6

*

BRITAIN-

Jan.

133,850

1591420

199~240

salary

jan.

350,770

268,460

384,250

469,420

by dealers—

__.

U.

S.

DEPT.

OF

LABOR—

IIJan"

176.5

!_

;

Building materials

Lumber

_

products

}Not available.




—12.8

291

268

247

239

233

239

233

219

216

188:

445

423

426.

304

283

227,

188

201

—

income—_____——234.5

Jan. 15

177.0

179.9

193.9

193.2

farm

jan. 15

II

FARMERS

DEPT.

OF

1909-July,

—

..

INDEX

AGRICUL¬

1914—100—As

15:

products
grain

grain

—

and

hay

1

—

207

171

161

138

296

288

300

340

337

29Q

410

411

233

247

247

—-—-

$3,634,000

—

crops

and

219>

294

crops

.

products—

animals

———

products

358

261

192.6

Poultry

194.0

•

BY

S.

August,

198.1

198.9

183.9

236.5

231.2

24.9.5

RECT

188.8

188.9

181.1

OF

S.

165.2

268.7

265.4

and eggs i

AM)

187.5

TREASURY

U.

MARKET

281.6

Net

sales

15

165.2

165.3

165.6

170.5

Net

TRANSACTIONS

159.2

159.5

160.1

138.8

138.8

133.8

136.3

15'

190.8

190.8

201

1)1-

SECURITIES

179.6

15

IN

'

of December:

purchases

l5

______________

GUARANTEED

A.—Month

jan"

lighting materials

19.7.

296

RECEIVED

jan

foods

products

Metals and metal products

46.3

20.7

v

20.8

12.6

232.8

Jan_ 15
——

*

177.2

192.0

15

Jan. 15

—

Livestock

and

3.6

*48.3

50.2,

214.3

Dairy
-

farm

3.2

3.8

155.6

12.5

Meat

jan, 15

products

than

I
dividends

payments—.

3.4

-

*232.1

Truck

,
-

r°£dS
Meats

and

23.9

3.8

—

income

19.3

*30.0

152.4

_

social

——,

interest

43.1

20.3

3.6

for

69.3

*46.4

31.5

contributions

*75.0

46.6

—_

*171.7

74.9

_•

*168.3

20.5

industries—.

income

Livestock

106:

$234.1

,

169.9

173.5

disbursements

employee

Oil-bearing
—

total™

receipts,

industries

Fruit

\

Number of shares,

SERIES

COMMERCE)—Month

producing industries-

Feed

2981860

PRICES. NEW

STATES

Crops

298,860

sales

•®S»CFlsea,

-

6.63

5.71
-

6.-45

$257.5

IN

OF

employer

October

All

Jan.

allied

€.89

5.86
v

.

billions):

Food

sales

and

"$27,228,000

Unadjusted—

>

of shares—Total sales

Chemicals

7,209,000*

Cotton

of

$41,367,377

—

by dealers—

Other

,

8,618,000'

■ ■

5.55

income

NUMBER—U.

1,059,025

Fuel and

$28,288,000

3.47
.

transfer

TURE

15,981

sales

other

,-*

Dec.:

—

nonagricultural

PRICES

1,075,006

545,268

short

commodities

of

—

ISSUES

and

Total
Total

36,480

other

Textile

Montli

BANK, LTD.—Month of December:

Personal

415

18,498

■-«

Short

All

7;118;000(

Tobacco

'

Jan.

,

shares—Total sales

Grains

,

OF

sales)—

Customers'

Farm

—

$28,410,000.
YIELD

Proprietors and rental income

1,271,860

$35,709,466

,

Customers'

=

B,*902)000

*

V*

5.56

insurance

.

1926

f

16,827,WG-

-16^020,000

DEPT.

omitted)

s

AVERAGE

(10)

Other labor

sales

All commodities

7,018,000

(000

Distributive

COMMISSION:

total sales

sales—

Customers'

^WHOLESALE

15,940,000*

STOCKS

personal

151.5

purchases)—

Jan.

purchases

415:8

'

Government

I

Customers'

Sound-lot

•

■

4.45

(200)

Less

Jan.

Number of orders—Customers'

Number

•

160.3

437.4

432,7

—

(15)

October

of
Total

ODD-

—

purchases by dealers

value

31

Commodity

Number of shares

IRound-lot sales

;

5.61

CAPITAL

INDEX —1926-36

Number of orders

Dollar

7,181,0005,952,000

-

159.7

y-

8,922,000

(DEPARTMENT

746,287

Jan. 18

EXCHANGE—SECURITIES

Number of

158.6

—

PERSONAL INCOME IN THE UNITED

106

405,521

100

value

5,801,000

*

6.38

Insurance

241,472

Jan. 12

Jan. 12

at end of period—

©dd-lot sales by dealers (customers'

Dollar

*13,133,000

7;282.000

*

<

:

(24)

futilities

Service

Odd-lot

*

5,699,000

(125)

Total

v,

7,292,000

Iv

*13,083,000 [

12,991,000 ^

[

(25)

Wage

DEALERS

529.8

of

____

goods

COMMON

MIDLAND

LOT

12,171,000

460.3

ASSOCIATION:

(tonsi

G7TOCK TRANSACTIONS

SERIES—Month

indexes—

Oct.

Industrial

3.59

,_Jan. 22

=

20,751,000
,

DEPT.

_______

WEIGHTED

Average

AVERAGE

10,721,000-

-w

464.1

goods

of

MOODY'S

3.05

..

AND

S.

IN CIRCULATION—TREASURY

Jan. 22

..Jan. 22

PAINT

23,119,000

20,394,000

8,486,000

place Nov.

goods

Nondurable

3.47

OIL.

23,182,000

20,519,000 **-

,

manufacturing

Jan. 22

Unfilled orders (tons)

20,748,000?

••

indexes—

_Jan.22

PAPERBOARD

116,756

20,519,000, ;

*

2.85

2.97

_

received

.

23,124,000-!

1

(production workers)

manufacturing

MONEY

2.74'

Aa

Orders

299,563:

52,627

20,264,000

turing industries—

119.20

.

NATIONAL

111,041

233,570

67,995

Estimated number of employees in-ioanufac-

116.02

_Jan.22

baa

130,755

270,785

29

1

Dec.

manufacturing

Payroll

112.75

108.70

DAILY AVERAGES:

Bonds

corporate

Average
Aaa

104.48

108.88

Jan. 22

YIELD

BOND

104.66

Jan. 22

.

Group

Government

Dec.

on

on

PAYROLLS—U.

manufacturing

All

109.97

Industrials Group

♦MOODY'S

6,656,541

(I)EPT. OF COMMERCE):

AND

Employment

115.43

102.63
i

784,636.
2,033,770

116,720

Dec.

of Dec. 29—,

as

730,817
1,439,702
5,934,682

October:

118.8C

107.44

Utilities

159.2

672,715

__

spindle hrs. per spindle in

OF

120.02

Jan. 22

bail road Group

201.1

166.6

1,575,566

29

hours, (OOO's omitted) Nov.—

EMPLOYMENT

116.02

(

of

as

29

Active

-

101.53

——...—

—

Aaa

Dec.

December,

spindle

Nondurable

___————.—Jan. 22

Aa

Public

active

SPINNING

Durable

•

of

of Dec.

as

Active

All

MOODY'S BOND PRICES DAILY AVERAGES:
€?. S. Government Bond3_—_______—...

210.4

175.000c

..Jan. 16

i—

at

24.200c

__Jan. 16

at

24.200c

„Jan. 16

at
Ctraits tin (New York)

24.200c

..Jan. 16

refinery

Export

fcead

..Jan. 16

———.

151.3

COM¬

29—

establishments

Spinning spindles in place

...Jan. 16

refinery at

200.8.

156.3

5,691,222

of

as

Dec.

month

consuming

Spinning spindles active

Electrolytic copper—
Domestic

of

as

public storage

OF

December—

public storage

; Cotton spindles

QUOTATIONS):

J.

96:8:

205.8

168.4

_

142.5

97.4

BALES:

month

consuming establishments

COTTON

iftETAL

_

144.6

97.4

_

__

132.5*

144.8

_

__

184.6

194.3:

138.2

210.8

_

....

In

$52.69

——-——___________—.—Jan. 15

-

152.a

187.0
208.9

156.3

_

:

iucis

..

In

4.131c

—.—.Jan. 15

fig iron (per gross ton)
Ccrap steel (per gross ton).:

160.6

205.4

206.3

and refrigerators
electricity

and

In

4.131c

325.3:

6,908,818

f
4.131c

195.7

345.8

158.5

_

243.4
210.8

207.6

Linters—Consumed

PRICES:

COMPOSITE

Finished steel (per lb.)„

192.R

186.7

In

*iON AGE

—

_

sweets

Lint—Consumed
164

158

207.9

210.8:

241.8

_

electricity

COTTON

Jan. 17

249.6,

138.9

.

BRAD-

&

STREET, INC.

177.6:

281.0

346.6

__

vegetables-

and

189.4

223.5

-

and

Miscellaneous

AND

_

187.4

210.4

____

229.2

190.2
278.6

bakery products-

MERCE—RUNNING

(COMMERCIAL

FAILURES

15:

_

and

House

*5<3TSON ELECTRIC INSTITUTE:
Clectric output (in 000 kwh.)

176.4

CITIES—

Nov.

188.6

omer

Jan. 12

Jan. 19

100

of

as

Clothing

SYS¬

RESERVE

INDEX—FEDERAL

SALES

STORE

$303,000

158,600

11,820,000

Gas

TEM— 1935-39 AVERAGE

$435,000

YORK—

231.4

and

Eggs
Fruits

Fuel,
$t>'€PARTMENT

$242,100

of

MODERATE

FOR

100—Adjusted

Dairy products

.

Jan. 12

(tons;

NEW

OF

INDEX

FAMILIES

Meats

50,495,000

Jan, 12

——»•.

$532,900

DE¬

omitted)—

(OOO's

PRICE

Cereals

Fats

turns).

S.

Month

—

foods

All

C0AL OUTPUT

2?ennsyrvania mitiuacue

$393,522,000

OUTSTANDING—FED¬

Beverages
(U. S. BUREAU OF MINES):
bituminous coal and lignite (tons)—

$437,339,000

items

242,146,000

*—

U.

—

onucceu)

PAPER

1935-39—

___________—.——/an. 17

construction

Public

31,544,000

between

REPORTED

COMMERCE

OF

(000

Dec.

CONSUMER

"an. 17

construction

1,637,000

42,539,000

$434,000

shipped

689,458

All

'Total U. S. construction

18,222,000

5,100,000

$224,000

and

PUBLICLY

—

RESERVE

of

As

783,015

648,220

ENGINEERING NEWS-

—

10,101,000

38,701,000

$490,376,000

stored

DIVIDENDS

INCOME

CONSTRUCTION

87,019,000

7,313,000

23,230,000

—

countries

40,944,000

-Jan. 12
Jan. 12

—...

$244,939,000

116.357,000

47,718,000

_

Total
CASH

ERAL

loaded (number of cars)—

$227,309,000

7.439,000

credits—

——

goods

on

foreign

RECORD:
Private

$234,756,000

-

10,062,000

9,585,000

exchange

Based

ASSOCIATION OF.AMERICAN RAILROADS:

ENGINEERING

31:

44,232,000

warehouse

2,652,000

Ago

133,001,000

jjomtj;

6.186,700

Ye&i

Month

BANK

—

COMMERCIAL

CHVIL

December

Previous

OUT¬

RESERVE

sb'nments

Domestic

6.178,400

—

Revenue freight received from

ACCEPTANCES

—

5,761,510

6,225,200

.16,625,000

—

of that date:

are as

Month
BANKERS'

100.9

Imports

of

either for the

are

Latest

TVimesHc

—

Thursday, January 24, 1952

of quotations,

cases

Exports

...

iievenue freight

in

or,

Ago

Jan. 27

—

that date,

STANDING—FEDERAL

42
gallons each)
—
...Jan. 12
Crude runs to stills—daily average (bbls.)———.Jan. 12
CVasoline output (bbls.)
Jau- p
Kerosene output (bbls.)
Jan- *2
distillate fuel oil output (bbls.)
Jan. 12
teesidual fuel oil output (bbls )
Jan. 12
Clocks at refineries^ at bulk terminals, in transit and in pipe lines—
Finished and unfinished gasoline (bbJs.) at
Jan. 12
Kerosene (bbls.) at
*
Jan*12
Distillate fuel oil (bbls.) at
——j.
Jan. 12
Residual fuel oil (bbls.) at
Jan* 12
output

condensate

and

Week

99.4

.

production and other figures for the

cover

Year

INSTITUTE:

PETROLEUM

oil

>Urude

on

Month

Week

jBteei

AMERICAN

month ended

.

Dates shown in first column

month available.

Previous

Jan. 27

of capacity)..—.—

(percent

or

statistical tabulations

or

Latest

ANp STEEL INSTITUTE:

steel

indicated

latest week

.

IIIIIIIIjan
~~Jan"
~jan
I!~~" "jan.
I_IIIIIII_IIjan.

{[Includes 435,000 barrels of foreign crude

190.8

187.4

15

223.6

223.5

224.7

2^6.6

15

346.1

346.1

347.9

UNITED

t

15

137.5

137.6

138.2

—

—

$28^968,100

STATES

BUREAU
(OOO's

EXPORTS

AND

$6,956,400

IMPORTS-

OF CENSUS—Month of

November

omitted):

i

Exports

145.7

i

Imports

—

$1,386,000
r

$1,155,000

' 818,400

833,100

$978,000

854,150

"

runs,

§Five days ended Jan. 5.

$Amer.«- Tel.

& Tel. excluded.

-

•

^

,_.u

Volume 175

Number 5084

.

.

The Commercial and Financial Chronicle

.

(405)

Securities Now in Registration
Allied
Dec.

10

Kid Co.,

Boston, Mass.

1,000 shares of common
Price—At market (estimated at $21 per

HEW ISSUE CALENDAR

(par $5).
share). Underwriter—Schirmer, Atherton & Co., Bos¬
ton, Mass. Proceeds—To Benjamin Simons, the selling

Price—to be supplied by amendment.

derwriter—The First Boston Corp., New York.
—For

American Airlines,

Herbert Helmus-Hardware Corp
(No

New York

January 28, 1952
(Cruttenden &

which

above

options. Underwriter
working capital.

—

None.

Proceeds

—

United

Canadian

Oil

share, or to refund
desiring to retain the stock.
Price—$2 per share. Underwriter—None. Proceeds—To
repay loans and other liabilities and for exploration ex¬
those

to

Common

Fla.

Guardian

purchase

Credit

of

Corp.,

securities.

Orlando,
Office

—

Fla.

Proceed

American

—

(First

Debentures

Boston

Corp.)

(Bids

11:30

Dajdon Power & Light Co
(Morgan Stanley

'

Bonds

~

(Bids

11.30

EST)

a.m.

Common

a.m.

EST)

a.m.

11

EST)

West Penn Electric Co
(Bids

For

Common

11

G.

Becker &

Co., Inc.;

Common

Dominion Securities Corp.,

Chicago & Eastern Illinois RR
(Bids

—

Erie

Common

Higginson Corp.;

W.

P.

,

"

v;

v;

February 1, 1952

Flour Mills

Co., Phoenix, Ariz.
(letter of notification) 20,000 shares of capital
stock (par $10) being offered initially to stockholders
of record about Jan..
15; with an oversubscription privi¬
lege. Price—$15 per share. Underwriter—Refsnes, Ely,
Beck & Co., Phoenix, Ariz.
Proceeds—To retire prom¬
issory notes and for working capital. Company's Address
Dec.

—P. O. Box

2510, Phoenix, Ariz.

Common

(Dillon, Read & Co.)

Maine Public Service Co.___

Common

—

Pierce, Fenner & Beane; Kidder, Peabody & Co.)

Monsanto Chemical Co

Price—At

Servomechanisms, Inc.

($1

per
share).
Underwriter—W. C.
City, N. J. Proceeds—For new mill,
core-drilling
expenses
and
working

(Smith,

Raytheon Manufacturing Co
(Hornblower & Weeks;

Doehler Co., Jersey

tunneling

and

Texas

(par $1).

Price—$8.25 per share. Underwriter—
Dean Witter & Co., San Francisco, Calif. Proceeds—To
A. G. Streblow, the selling stockholder.
Office—Eighth
and River Sts., Napa, Calif.
Basic

,

:

r

,

'

Refractories, Inc., Cleveland, Ohio

-

—

(Rauscher, Pierce & Co.)

Debentures

bank loans.

Louisville Gas & Electric Co.__.
(Bids

__Bonds

invited)

be

to

Common

Corp.
Higginson Corp.)

Merritt-Chapman & Scott Corp.___
(Carl

M.

Preferred

Loeb, Rhoades & Co.)

Pennsylvania Power Co
(Bids

11

Central

($1

per

share).

Price—At par
Proceeds—For investment. Address—P.

O. Box 303, Baton
:

Benbow

Dec.

7

Rouge, La.

Manufacturing Co., Burlingame, Calif.

85,000 shares of capital
stock (par $1),, of which 10,000 shares are to be offered
first, to stockholders and J5,000 shares offered
publicly.
Price—$3 per share. Underwriter—None, but Da vies &
Co., San Francisco, Califs acts as agent. Proceeds—To
retire debt and for working capital. Office—1285 Rollins
Boad, Burlingame, Calif.

February 7, 1952
Sachs

& Co.,;

Co.;

&

Securities

Webster

Jan.

Iron

Corp.;

Common

Allen

&

Co.)

February 13, 1952
& Co.,

:—Common

Inc.)

Probable

Co.

(1/29)

bidders:

class A and

Jan.

class

-Equip. Trust Ctfs.
(Bids

to

be

common,

common

/

common

stock

invited)

;

(

.

$200,000

of debentures
$1,000 each). Price—
80% of principal amount. Underwriter—Israel & Co.*
New York.
Proceeds—For working capital.
Office—•
1440 Broadway, New York, N. Y.
(in

denominations

$300

of

and

,

★ Coastal Finance Corp., Silver Spring, Md.
Jan. 14 (letter of notification) $150,000 of 6% 10-year
subordinated debentures (in denominations of $500 and
$1,000 each); and 2,700 shares of class A common stock
(par $10) and 5,400 shares of 6% cumulative preferred
stock (par $10) to be issued in units of two shares of
Price*
Under¬
Becker, Washington, D. C.
Proceeds—To increase loans. Office—321Eig Bldg., 8641
stock units at $35 each.

&

Brewer

Silver Spring, Md.

★ Colonial Acceptance Corp., Chicago, III.
Jan. 18 (letter of notification) 2,000 shares of class A
common
stock
(par $1).
Price—At market (approxi¬
mately $4.25 to $5 per share). Proceeds—To David J.
Gradman, the selling stockholder. ' Underwriter—Steii*
Bros. & Boyce, Baltimore, Md.
Colonial
7

Acceptance Corp., Chicago, III.
of notification) 5,000 shares of class A
(par $1). Price—At market (approxi¬

(letter

stock

&

Underwriter—Stein Brost
Proceeds—To David Gradmai^,
Office—208 So. LaSalle St., Chi*

Boyce, Baltimore, Md.

111.

Dec.

26

filed

New York
shares of common stock (no parjL
(about $12.75 per share). Underwrite#

1,359

Price—At market

Proceeds—To certain selling stockholders.
Grocers

Corp.

convertible.
Price—To be supplied by
Kuhn, Loeb & Co. New
York, A. C. Allyn & Co., Inc., Chicago, 111. Proceeds—T#
retire 21,307 shares of $100 par value 5% cumulative
preferred stock and for additional working capitaL
Dec.

29

filed

200,000 shares of cumulative

stock

(par $50).

Underwriters

—

Continued

February 28, 1952

on

page

__Equip. Trust Ctfs.
(Bids

to

be

invited)

.

.

11

March 4, 1952
Central

Power

March

1951, filed 300,000 snares of convertible pre¬
stock
(par $100).
Price—To be supplied by

amendment.
York.

and

Carolina
14

equipment.
Power &

additions

and

i.

33,000 shares of $5 cumulative preferred
(no par) being offered in exchange for $1.35 cu-




.

Bonds &
to

be

(Bids

Common

invited)

Metropolitan Edison Co

Bonds & Preferred

noon

EST)
:*~to

New York.

April 1, 1952

Offering date postponed.

filed

Bonds

invited)

Co
(Bids

& Co., New
improvements to

Light Co.

be

18, 1952

.

Underwriter—Kidder, Peabody

Proceeds—For

to

March
•

Interstate Power

,,

Light Co
(Bids

5,

ferred

&

West

Penn

Power

Co

(Bids

Bonds
to

be

/

share of class A common stock.

one

Chicago, Milwaukee, St. Paul &
Pacific RR.

at

Office—5,800 Paw¬

Commercial

Corp.
(letter of notification)

10

B

Underwriter—None.

Road.

preferred

February 20, 1952

...

Stock

Seibel

$35 per share.

amendment.

Foundry, Providence, R. I.

Burlington Mills Corp.

Dec.

bidding.

Consolidated

r

—

(Blyth

common

(letter of notification) $100,000 of 10-year 4%
debentures due Feb. 1, 1962 (to be offered in denomina¬
tions of $50, $100 and $500
each). Underwriter—None.
Proceeds—For working capital. Office—345 Harris
Ave.,
Providence, R. I.

plant

Service

Columbia Pictures Corp.,

stock

Builders

Public

$1) to be offered in exchange for outstanding;
3,866 shares of Seibel Helicopter Co., Inc., class A pre¬

—None;

Oliver Corp.

to*

by
Halsey, Stuart

★ Cessna Aircraft Co., Wichita, Kansas.
Jan. 14 (letter of notification) 31,128 shares of

cago,

Central Illinois Electric & Gas Co.„

Southern Ry.

(par $1). Price—$4.25 per share. Underwriter—
Watling, Lerchen & Co., Detroit, Mich. Proceeds — To
construct and equip a magnesium
rolling mill. Office—
1950 West Fort St., Detroit
16, Mich.

Illinois

President of company.

February 8, 1952
(Stone

and

determined

mately $4.25 to $5 per share).
Common

Lazard Freres
Weld & Co.)

&

White,

..

Brooks & Perkins, Inc., Detroit, Mich.
Jan. 2 (letter of notification) 25,511 shares of

program

be

Probable bidders:

construction. Bids—To be received up to 11:39
(CST) on Jan. 29 at company's office, 20 No. Wacker
Drive, Room 2154, Chicago 6, 111.

Underwriter—None.

(letter of notification)

construction

Underwriter—To

new

Jan.

Owens-Corning Fiberglas Corp.
(Goldman,

&

D,
by
Halsey, Stuart
& Co. Inc.; Blyth & Co., Inc., Kidder, Peabody & Co. anct
^
Merrill Lynch, Pierce, Fenner & Beane (jointly);
Kuhiv ,Vv
Loeb & Co. and A. C. Allyn & Co., Inc.
(jointly); Lehman
Brothers and Bear, Stearns & Co.
(jointly); Salomon
Bros. & Hutzler; The First Boston Corp. and Central
Republic Co. (jointly); Glore, Forgan & Co. Proceeds—

Bonds
EST)

a.m.

Allen

construction,

Dec. 28 filed $5,000,000 of first mortgage bonds, series
due Feb. 1, 1982. Underwriters — To be determined

common

stock and 5,000 shares of common stock.

and

new

$4,000,000 of first mortgage bonds, seriesr

Colesville Road,

CST)

noon

an

Dealer—Man¬

Corp.

writer—Rouse,

Equip. Trust Ctfs.

(Bids

for each five shares held.

★ Baton Rouge Land & Mineral Corp.
Jan. 18 (letter of notification) 100,000 shares of
preferred

amendment.

Securities

Proceeds—For

Proceeds—For

preferred and

"

February 5, 1952
Illinois Central RR

(Lee

Price—$10 per share. Under¬
writer—None. Proceeds—To H. P. Eells, Jr., President,
who is the selling stockholder.

by

Webster

—Debentures at par and

Marathon

Jan. 2 filed 63,585 shares of common stock (par $1) to
be offered to common stockholders at rate of one share

Common

Industries, Inc

Basalt Rock Co., Inc., Napa, Calif.
Jan. 10 (letter of notification) 12,000 shares of common
stock

Common

Webber, Jackson & Curtis)

Paine,

(Van Alstyne Noel Corp.)

/

capital.

Common
& Co.)

Barney

shares held with

bank loans.

filed

Coastal

Kansas-Nebraska Natural Gas Co., Inc
Common
(First Trust Co. of Lincoln, Neb.; Cruttenden & Co.)

Arizona Mining Corp. (Del.)
(letter of notification) 294,000 shares of class A
capital stock, of which 194,000 shares will be sold by
company and 100,000 shares by New Jersey Loan Co.

10

Inc.; The First Boston Corp., Central Republic Co.
(Inc.) and Harris, Hall & Co. (Inc.) (jointly); Smithy
Barney & Co., Harriman Ripley & Co., Inc.

February 4, 1952

(Merrill Lynch,

&

competitive bidding.

nee

Dec. 28

par

23

1982.

share and

Southwestern Public Service Co

24

supplied

stocks,, for which purpose, Cessna stock is valued at
$1.12 y2 per share, Seibel preferred stock at $100 per

'

Arizona

(par $15) to

ferred stock, and class A common and class B

Brooks & Co.)

Securities Corp., Ltd.CProceeds—To be added to general

•

share for each

stock (par

Forge & Steel Corp
(Lee

Ltd.)

Eq. Trust Ctfs.

CST)

noon

(2/8)

a.m.

Amurex Oil Development Co
(a.

proposed!

★ Central Illinois Electric & Gas Co., Rockford, III.

For

January 31, 1952

Jan.

be

competitive

(J. M.) Co., Inc
(Bids

with

Underwriter—None. State¬

stockholders of record about Feb*.

common
one

Co., both of New York.

Bonds & Pfd.

& Co.,; W. E. Hutton & Co.)

United Gas Corp.__

Orlando, Fla.

funds.

connection

& Co.

Bonds

CST)

a.m.

Building,

Development Co. (1/31)
11 filed 500,000 shares of class A common stock
(par $5), of which 100,000 shares are to be offered in
Canada.
Price
To be supplied by amendment -(ex¬
pected at $10 per share): Underwriters—A. G. Becker
& Co., Inc., Chicago and New York,
and Dominion

Price—To

repay

Central Illinois Public Service Co

Lehmann

Amurex Oil

of

Jan.

January 30, 1952

American Fire & Casualty Co., Orlando,

rate

and to repay

Corp

Aluminum Co. of America

penses.

Dec. 19 (letter of notification) 11,100 shares of common
stock (par $10). Price — $27 per share.
Underwriter —

at

due

earlier

share

per

Co.)

(Aigeltinger & Co.)

the transaction and refund $3.50 per

$1.50

California

January 29, 1952

registration statement at $3.50
share who desire to rescind the transaction, to cancel

per

in

18 filed 64,000 shares of common stock

agers—Stone

Preferred

For

American-Canadian Uranium Co., Ltd., N. Y.
Dec. 28 filed 850,000 shares of common stock (par 10c).
Company will offer stockholders who purchased 10,327
an

Co.)

Southern California Petroleum Corp
(First

ISSUE

oversubscription privilege; rights to expire about Feb. 21.
Common

,

135,750 shares are to be offered to executive em¬
ployees through outstanding options at $11.70 per share,
605,000 shares are to be offered to employees through

preferred,

★ Central Illinois Electric & Gas Co.
Jan.

8

and

under

Com. & Pfd.

underwriter)

Pioneer Air Lines, Inc

Inc.,

Water

be offered to

Proceeds

Dec. 5 filed 740,750 shares of common stock (par $1), of

PREVIOUS

ment effective Jan. 4.

Un¬

expansion program.

shares

Tide

January 25, 1952

Feb. 1, 1964.

SINCE

merger of the two companies.

stockholder.
Aluminum Co. of America, Pittsburgh, Pa. (1/29)
Jan. 10 filed $125,000,000 of sinking fund debentures due

* INDICATES ADDITIONS
*

mulative preferred stock (par $25) of Tide Water
Powe^t>
Co. on basis of one $5 preferred share for each 4
shares oi

(letter of notification)

stock

41

■

Boston

Philadelphia

Pittsburgh

San Francisco

invited)

Private JVires to all

offices

Chicago

Cleveland

_r

42

.

42

The Commercial and Financial Chronicle

(4G6)

Continued from page 41

cumulative

preferred stock and 500 shares of common
<?tock. Price—At par ($100 per share). Underwriter—
None. Proceeds—To purchase office
equipment and for
working capital. Office—1016-18 Belmont Ave., Char¬
lotte, N. C.

Cooperative Grange League Federation
Exchange, Inc., Ithaca, N. Y.
Dec. 21 filed

100,000 shares of 4% cumulative preferred
(par $100) and 1,000,000 shares of common stock
(par $5), the preferred to be offered to farmer and nori-

Forbes &
Dec.

GLF

patrons, and the

patrons only.

Price—At par.

common stock to farmer
Underwriter—None. Pro¬

ceeds—To repay bank loans and working capital.
ment effective Jan. 15.
Cream
Dec.

State¬

1c Crookes
Jan.

17

stock

-

Laboratories, Inc.,

(letter

of

notification)

N.

Y.

4,751

shares

of

capital

(par $1), to be offered to stockholders of record

Jan. 24 at rate of

1

new

rights to expire on
Underwriter—None.

share for each 20 shares

Feb.

25.

Price—$3.75

Proceeds—For

per

working
N. Y.

held;
share.

capital.

Office—305 East 45th St., New York
17,

Crusader

Corp., Denver, Colo.
notification) 2,000,000 shares of capital

Price—15

cents

share.

per

Underwriter—J.

W.

Hicks &

Co., Denver Colo. Proceeds—For drilling and
development. Office—1717 East Colfax Ave., Denver 6,
Colorado.

Dayton Power & Light Co. (1/29)
8 filed 256,007 shares of common stock

Jan.
and

a

new

series

due in 1982.

of

each nine shares

on

$15,000,000 first mortgage
formally offered to

Jan. 28

on

basis

of

held; rights to expire

offering price of the bonds
be

(par

$7)
bonds

The stock will be

stockholders

mon

and

the

one

com¬

share

for

Feb. 15.

on

interest

of

for

class

rate

The
will

announced

by the company about Jan. 29. Under¬
writers—Morgan Stanley & Co. and W. E. Hutton & Co.
Proceeds—To repay $12,000,000 bank loans and for con¬
struction
program.
Offering—Formally expected on
Jan. 29.
Diesel

Power Corp., Pittsburgh, Pa.
Jan. 10 filed 475,000 shares of common stock to
be of¬
fered first to holders of
preferential rights for a limited
time. Price
At par
($1 per share).
Underwriter —
Graham & Co.,
Pittsburgh, Pa. Proceeds—For develop¬
ment costs and
working capital.
—

Chemical

Nov. 16 filed
of

which

Co., Midland, Mich.

180,000 shares of
133,202 shares

common

about

are

stock

(par $15)

to

common

stockholders of record Dec. 14 at rate of one
share for
each 50 shares held.
Subscriptions must be filed betweeE
Jan. 3 and Jan. 25, 1952.
Approximately 46,798 shares
also

are

offered

subsidiaries.

to

employees of the

Price—$82.50

per

and

company

share.

its

Underwriter-

None.
Proceeds—For capital additions to plants and fa¬
cilities and for other
corporate purposes. Statement ef¬
fective Dec. 10.

1c Eagleton Development Co., Inc. (Pa.)
Jan. 14 (letter of
notification) 2,500 shares of capital
stock.

Price—At

None.
oil

par

Proceeds—For

resources.

($100

share). Underwriter—
development of natural gas and

Office—523

per

So.

Fairview

St.

(Edwin

D.

Erie

Forge & Steel Corp., Erie, Pa. (1/31)
11 filed 150,000 shares of
common stock
(par 10
cents). Price—To be supplied by amendment.
Under¬
writers—Lee Higginson
Corp. and P. W. Brooks & Co.,
Inc., both of New York. Proceeds—To retire
outstand¬
ing 5% first preferred stock at
par ($100 per share) and
Jan.

for general
corporate purposes.

County Newspapers, Inc., Boston, Mass.
(letter of notification)
$300,000 of first mortgage

bonds due 1972

(in denominations of $1,000 each). Un¬
derwriter—None. Proceeds—For
newspaper plant and
equipment. Address—c/o
Withington, Cross, Park & McCann, 73 Tremont St., Boston 8, Mass.
Falstaff
10

stock

Brewing Corp., St. Louis, Mo.
(letter of notification)
20,000 shares of

common

(par $1). Price—At market
(approximately $12.50
share). Underwriter
J. H. Williston &
Co., New
York. Proceeds—To Estate
of Frederick R.
per

—

general public

Bauer.

of

common stock

stock

stock

(par

No

offering planned.

★ Family Housing, Inc.,
Landover, Md.
Jan. 11 (letter of
notification) 500 shares
stock

investors

(no par), 500 shares of members common
$50), 3,000 shares of members preferred

(par $50) and 1,150 shares of investors
preferred
(par $100). Price—For members
common
stock,

$5 per share, and for all others
at par.

Underwriter—

—To invest in lots and erect dwellings.
Address—P. O. Box 1,
Landover, Md.
★

★ Financial Fund, Inc.,
Seattle, Wash.

Jan.

22

filed 25,000

market.
cial

shares of

common

stock. Price—At

Proceeds—For investment.
Undewriter—Finan¬

Management Corp., Seattle, Wash.

First Western
Co.,
Dec. 10 (letter of

Seattle, Wash.
notification) 6,000 shares

common

stock.

Price—At

par

($50

writer—None, but A. F. Crawford
handle

capital.

sales.

per

of

held, with a
balance of 11,740

Jan.

and

George

$4

share.

per

R. Holland
in

use

small

common

Office—440

Grand

,

Proceeds—For

Jan.

Church

St.,

New

purposes.

Statement

York.

expire

of class

and R. B.

B

Under¬

Magner will
and

working

Seattle, Wash.

shares held

common

Feb.

on

6.

Price—$26 50

on

per

Blyth
Proceeds—To repay bank loans
•

Natural

77,355 shares of

each

to

shares

Gas

Co., Inc.

common

stock

held.

(2/4)

(par $5) to

stockholders at

common

10

and to retire

rate

Price—$20

of

one

share.

per

bank loans.

Jan.

per share. Proceeds—To develop prop¬
Office—500 First National Bank Bldg.* Wichita'

Underwriter—None.

18

(letter

of

Lighting Co., Brooklyn, N. Y.
notification) 550 shares of common
.

stock

(no

None.

.

common

Price—$1

Falls, Texas.

Shares will be sold

par).

Price—$9

per

on

share.

..

Underwriter—

New York Curb

Exchange.

Proceeds—To reimburse treasury for cost of acquisition
said securities.
Office—6740 Fourth-Ave., Brook¬

Of¬

lyn 20, N. Y.

vertible preferred

of

stock, to be offered first to
Jan.

record

24

at

rate

of

1

1c Lakewood Plaza Eight, Inc., Norwalk, Calif.
(letter of notification) 2,950 shares of preferred
stock (par $100) and 875 shares of common
stock-(no
par). Price—Of preferred, at par, and of common,, at

Jan. 17

con¬

common

preferred

10 class A

$5

common shares held, with an
privilege;1 rights expire on Feb. 4.
($5 per share). Underwriter—Company
and Jackson & Co., Inc.,
Boston, Mass. Proceeds—To
finance military contracts and for working capital.

oversubscription

Price—At

1c Hamilton
Jan. 21 filed

;

Business—Unit-type investment
Inc.,

:

company.

"High-grade

Common

Underwriter

—

Stock

Hamilton

Fund."

Denver, Colo. Proceeds — For investment.
Open-end investment company.

Corp.,

Business

—

•'

'■

!

Hawkeye-Security Insurance Co.
Nov. 5 (letter of notification) 2,000 shares of 5%.

I

ment.

Underwriter—None.

I

rently

Price—At market (cur¬
Underwriter—Quail & Co..

i

Davenport, la., and Becker & Cownie, Des Moines, la
To six selling stockholders.
Office —1017
Walnut St., Des Moines
9, la.
Offering—Temporarily

;

$50

per

share).

Office—13421 San Antonio Drive, Norwalk, Calif.

Lindemann

cumu¬

lative preferred stock (par $50).

Proceeds

-

stock (par $100) and 700 shares of common stock
(no
par)./ Price—Preferred, at par, and common, at $5 per
share. ^Proceeds—To purchase real property for invest-

i

,

■'

1c Lakewood Plaza Six, Inc., Norwalk, Calif.
Jan. 17-\(letter of notification) 280 shares of preferred

Price—At

Management

Office—

(par $100) and 700 shares of common stock (no
par). Price—Of preferred, at par, and of common, at
$5 per Share. Proceeds—To purchase property. Office—
13421 San Antonio Drive, Norwalk, Calif. Underwriter—J

None;$£'•.

Denver, Colo.

Jan. 21 filed 1,000,000 shares of series H-C7
"High-grade
Common Stock Fund" and
1,000,000 shares of series
market.

Proceeds—To purchase property.

1c Lakewood Plaza Seven, Inc., Norwalk, Calif.
Jan. 17;(letter of notification) 2,750 shares of preferred

Fund, Denver, Colo.
1,000,000 shares of series H-C7 "High-grade

Funds,

share.

None.

stock

Underwriter—Hamilton Management Corp.,

Denver, Colo.

1c Hamilton

per

13421, San Antonio Drive, Norwalk, Calif. Underwriter—

par

certificates.

—

(A. J.)

& Hoverson Co.

Nov. 28 filed 112,500 shares of common stock (par $1).
Price-^-To be supplied by amendment.
Underwriter—
Sills, ;Fairman & Harris, Inc., Chicago, 111. Proceeds—
To eight selling stockholders.
Offering—Date indefinite.
Louisville Gas

;

Jan.

1c Hecla Mining Co., Wallace, Ida.
Jan. 17
(letter of notification) 3,000

&

Electric

Co.

(Ky.)

(2/5)

Feb.

shares of capital
(par 25 cents). Price—At market (approximately
per share).
Proceeds—To Mrs. M. K. Pollard, the
selling stockholder. Underwriter—Thomson & McKinnon, New York.

and

working
Ave., Brooklyn, N. Y.

capital.

Office—1621

4,000 shares of common
Price—$18 per share. Underwriter—
Hornblower & Weeks, New York. Proceeds—To William
W. Steele, the selling stockholder.

stock

i

bonds

Boston Corp.

Proceeds—For

due

prop¬

Inc., Fort Worth, Tex.

to

be

offered

first

to

common

stockholders,

and then to
Underwriter—

public.? Price—At par ($100 per share).
Non^. Proceeds — For operating capital. Office
RacdvSt., P. O. Box 7303, Fort Worth 11, Tex.

,

—

2809*

one

|hare

for each five shares held

on

or

about

Feb. 4,

withl oversubscription privileges; rights to expire aboutL

Feb.|25.. Price—To be supplied by amendment. Under¬
writers— Merrill Lynch, Pierce, Fenner & Beane, and
Kidder, Peabody & Co., both of New York. Proceeds—

(par $10) be¬

rejpay bank loans and for

new construction.

Marathon

Corp., Rothschild, Wis. (2/5)
Jan. 15 filed 400,000 shares of common stock
(par $6.25).
Price^-To be supplied by amendment.
Underwriter—
Lee HUgginson Corp., New York. Proceeds—To be added

Up to and including Dec. 31 over 80% of Pacific's stock
deposited, thus consummating the exchange offer.

was

1c Independent Exploration Co., Bakersfield, Calif.
Jan. 17 (letter of
notification) 114,000 shares of common
stock (par 33%
cents). Price—At market. Proceeds—

mortgage

I^ine Public Service Co. (2/4)
Jan.fl5 filed 35,000 shares of common stock (par $10)
to b^. offered first to common stockholders at rate of

ing offered in exchange for shares of $10 par stock of
Pacific Portland Cement Co. of San Francisco on
basis
of one share of Ideal for each two
shares of Pacific stock.

Colo.; J. Barth & Co., San Francisco, Calif. Offer—
Extended to Jan. 31. Statement effective Nov. 29.

first

Nov.f 20 (letter of notification) 750 shares of

To

ver,

of

Lubrication Engineers,
1

(par $2.50).

Ideal Cement Co.,
Denver, Colo.
Nov. 9 filed 250,000 shares of
capital stock

$12,000,000

erty

Nostrand

Hoover Co., No. Canton, O.
Oct. 22 (letter of notification)

filed

(jointly); The First
Additions.

$18

^Herbert Helmus-Hardware Corp. (1/25)
Jan. 17 (letter of
notification) 7,600 shares of class A
common
stock, 20,000 shares of class B common stock
and 20,000 shares of preferred
stock.
Price—At par
($5 per share). Underwriter—None. Proceeds—For ex¬

9

'1;: 1982. Underwriters—To be determined by com¬
petitive. bidding. Probable bidders: - Halsey, Stuart &
Co.
Inc.;- Lehman Brothers and Blyth & Co., Inc.

stock

stock

„

of

effective

1c Gyrodyne Co. of America, Inc., New York
Jan. 17 (letter of notification) 25,680 shares of 6%

pansion

r

(par $3). Price—$17 per share.
Underwriters—
Blyth & Co., Inc., and Robert W. Baird & Co., Inc. Proceeds—To Francis J. Trecker, the selling stockholder.
Office—6784 W. National Ave., West Allis
14, Wis.

1c Kings County

14.

H-DA

for

erties.

Offering—Date not set

corporate

general

14 filed

offered first

j: stock.

Union Co.,

fice— 50

to

★ King Oil, Inc., Wichita Falls, Tex.' v •: - /" '
(letter of notification) 200,000 shares of

New York
Aug. 7 filed 64,000 shares of common stock (par $10.
to be issued pursuant to an "employees' restricted stock
option plan.
Price—$28.03 per share.
Underwriter —
None.

share for each six

Jan. 17

Proceeds—For drilling expenses, repayment

working capital.

one

rights

stock

Mines

of advances and

of¬

Kearney & Trecker Corp., West Allis, Wis.
Dec. 26 (letter of notification) 5,800 shares of common

Ltd., Montreal, Canada
750,000 shares of common stock. Price—
($1 per share). Underwriter—George F. Breen

par

Office—95

Offering—Public

Underwriters—The First Boston Corp. and

struction

April 9 filed
New York.

improvements.

Undewriters—The First Trust Co. of Lincoln, Neb., and
Cruttenden & Co., Chicago, 111. Proceeds—For new con¬

Manufacturing Co., Los Angeles, Calif.
Jan. 7 (letter of notification) 30,000 shares of 6% cumu¬
lative convertible preferred stock, series A. Price—At
par
($10 per share).
Underwriter—First Investment
Co., Los Angeles, Calif. Proceeds—For working capital.
Office—3301 Fruitland Road, Los Angeles 58, Calif.
Golconda

and

for construction.

share

Given

At

22,

Jan.

Proceeds—

loan

additions

Co., Inc., New York.

be

Underwriter—

Associates, Miami, Fla.
subsidiary branches.
Biscayne Blvd., Miami, Fla.
For

of

Kansas-Nebraska

General Credit

—

selling

filed

share.
&

Price

3

at rate of

Fuelgas Corp., Chester, N. Y.
(letter of notification) 30,000 shares of preferred
Price—At par ($10 per share).
Underwriter—
None. Proceeds—For operating capital and expansion.

(par $1).

Stevens, the

City Power & Light Co.
317,792 shares of common stock (no par),
being offered for subscription by common stockholders

Jan.

stock.

Dec. 29

Ray P.

Kansas

offered

Corp., Miami, Fla.
(letter of notification) 75,000 shares of

(letter

Proceeds—For

class A

of

To

—

Exchange Street, Portland 6, Me.
fering expected late in January.

one-fifth

It is Ideal's intention to
operate the Pacific company as
a
subsidiary. Dealer-Managers—Boettcher & Co., Den¬

share).

Proceeds—For construction
Office—8050—35th Street,




of

ratio

delayed.

Essex

Dec;

share

in

29

>

Tyndale, Secretary), Lock Haven, Pa.

Dec. 21

each

share

stock

Proceeds

Portland, Me.
notification) 2,186 shares of 5%%
cumulative preferred stock (par $100) offered
by com¬
pany to
residents of Kankakee, 111.
Price—$105 per
share. Underwriter—H. M. Payson &
Co., Portland Me.
Oct.

Jan. 9

share for each

offered

to

B

each

stockholders
Dow

A

Co.

Service

Kankakee Water Co.,

1414 Main St.

$1.25. The
publicly. Price—To public, $1.15
per share.
Underwriter—American Shares Corp., New
York, and Young & Co., Pittsburgh, Pa. Proceeds—To
clear up dividend arrearages on class A stock.

stock

Jan. 16 (letter of

I'stock.

share

class

111.

cago,

Inc., Marion, Ind.

of

holders

to

shares will be

Valley Telephone Co., Hawkins, Wis.

(letter of notification) 1,000 shares of common
(par $25). Underwriter — None. Proceeds — Foi

construction costs.

sued

Public

26

stockholder.

(letter of notification) 31,740 shares of class B
(par 10 cents), of which 20,000 shares will be is¬

stock

Seaman, two selling stock¬
Bakersfield, Calif.

California Ave.,

(letter of notification) 2,000 shares of common
stock (par $5). Price—At market
(approximately $19.50
per share).
Underwriter—A. C. Allyn & Co., Inc., Chi¬

17

value

21

stock

Form Moulding,
Dec.

—

Office—531

Iowa
Nov.

Wallace, Inc., Springfield, Mass.

Office

Thursday, January 24, 1952

.

Underwriter—None.

(letter of notification) 1,050 shares of class B
common stock
(no par). Price—$20 per share. Under¬
writers — Tifft Brothers, Springfield, Mass., and F. S
Moseley & Co., Boston, Mass. Proceeds—To A. B. Wal¬

stock

farmer

holders.

13

lace, the selling stockholder.
Springfield 2, Mass.

.

To L. W. Saunders and L. R.

1c Flowood Corp., Jackson, Miss.
10 (letter of notification) 11,000 shares of capital
stock.
Price—At par ($25 per share).
Underwriter—
None. Proceeds—To erect buildings, houses and a motel.
Address—P. O. Box 900, Jackson, Miss.
Jan.

1c Conway Heating & Air Conditioning Co., Inc.
Jan. 14 (letter of
notification) 500 shares of 5% non-

.

to

general funds to be used for expansion.
Manufacturer of paper and paper machines.

Business—
-

s

Marshall Field & Co., Chicago, III.
\ Dec. f9 filed 150,000 shares of 4%% cumulative

convert¬

ible preferred stock (par $100). Price—To be
supplied
by amendment. Underwriters—Glore, Forgan & Co. and
Lee Higginson CorpM New York.
Proceeds—To retire

bank^oans.

Offering—Indefinitely postponed.

'

I

Volume 175

,

Number 5084

:

.

^Massachusetts Investors Second Fund, Inc.,
•''
Boston, Mass. ■ •
•••
••
•
•
"
; Jan. 21 filed 832,582 shares of capital stock.
Price—At
'

(407)

The Commercial and Financial Chronicle

.

.

Proceeds—For working capital.

None.

'

market.

Underwriter—None.

Proceeds—For investment.

★ McKay Machine Co., Youngstown, Ohio
Jan. 14 (letter of notification) 6,399 shares of common
stock
(no par).
Price—$25 per share. Underwriter—
None.
Proceeds—To pay for plant expansion and new
equipment. Office—767 West Federal St., Youngstown,
Ohio.

of

facture

multiple spindle automatic
*

•"

etc.

Mohawk

Business—Manu-~
screw machines,
'

,

Corp.
<,
Jan. 17 filed 20,196.1 shares oi class A stock (no par).
Price—At current market prices on the New York Stock
Exchange. Underwriter — None. Proceeds — To United
Corp., the selling stockholder.
if Niagara

Power

Merchants
Dec.

17

stock

Petroleum

Co., Inc.

(letter of notification)

4,000 shares of common
Price — At market (approximately 65
share). Underwriter—Akin-Lambert & Co., Los

(par $1).

cents per

Angeles, Calif. Proceeds—To R. Wayne Hudelson, the
selling stockholder. Office—639 So. Spring Street, Los
Angeles 14, Calif.
Merritt-Chapman & Scott Corp. (2/5)
Jan. 15 filed 100,000 shares of cumulative convertible

stock

-preferred

$50).

(par

Price—To

supplied

be

by

*

amendment.
New York.
Metals

Underwriter—Carl M. Loeb, Rhoades & Co.,
Proceeds—For expansion program.
Chemicals

&

Corp., Dallas, Tex.
Nov. 26 (letter of notification) 100,000 shares of common
stock (par 10 cents). Price—$3 per share. Underwriter—
Beer & Co. and Binford, Dunlap & Reed, both of Dallas,
Tex.; Carlson & Co., Birmingham, Ala., and Stuart Wyeth
Co. of Philadelphia, Pa. Proceeds—To purchase and

Corp., Chicago, III.
(letter of notification) $220,000 of 5% convertible
notes, dated Dec. 1, 1951, and due Dec. 1, 1959.
Price—
At par (in denominations of $100 each).
Underwriter—
None.
Proceeds—For working capital. Office—444 Lake
Shore Drive, Chicago, 111.
Overseas

if Owens-Corning Fiberglas

!

stock

offered

be

to

present stockholders.

share).
increased capital.
($100

par

"For

Co., Oklahoma City, Okla.

(letter of notification) 3,000 shares of preferred

to

Underwriter—None.

per

Pittsburg, Kansas
Oct. 4 (letter of notification) $225,000 of second mort¬
gage 5% bonds to be offered to stockholders in ratio of
$300 of bonds for each share of stock held as of record
June 30, 1951, with an oversubscription privilege. Price
—At principal amount. Underwriter—None. Proceeds—
For equipment. Office—314 National Bank Bldg., Pitts¬

.

Co.,

burg, Kansas.
Chemical

Monsanto
.Jan.

filed

16

.Price—To

400,000

Co., St. Louis, Mo.

shares of

supplied

be

by

stock

common

amendment.

Smith, Barney & Co., New York.

(2/4-5)
(par $5).

Underwriter—

Proceeds—To be added

to general funds to be used for expansion of plant facil¬
ities.
Offering—Expected early in February.

,

Moore
:

Jan.

per,

Drop Forging Co., Springfield, Mass.
(letter of notification) 9,000 shares of common

8

stock

$1). Price—At market (approximately $11
share). Underwriters—G. H. Walker & Co., New
(par

York,

Blunt

and

Ellis & Simmons, Chicago, 111. Pro¬
Chapin, a director of the company.

ceeds—To Alfred

Television, Inc., N.
(letter of notification) 299,000 shares of

Dec. 5
stock.

Price—At

None.

($1

par

share).

per

Y.
common

Underwriter—

Proceeds—For production of films for television

and

-presentation
East

H.

International

Moore

general working

capital.

53rd

Street, New York, N. Y.
in January.

-Office

—

20

Offering—Expected

if Moshannon Valley Gas & Oil Co., Inc.
Jan. 18 (letter of notification) 6,000 shares of class A
common stock.
Price—At par ($50 per share). Under¬
writer—None.

velopment of

and

gas

oil

Muntz TV,

wells.

exploration and de¬
Office—19 Water St.,

;

Inc., Chicago, III.

(letter of notification) 30,000 shares of common

*

stock (par $1).

Price—At market (approximately $2.87V2
Underwriter—John R. Kauffmann Co., St.
Proceeds—To Earl W. Muntz, the selling

share).

per

Louis.

Mo.

Office—1735 West Belmont Ave.,

stockholder.

Chicago,

Illinois.
Nash

(F. C.) & Co., Pasadena, Calif.
(letter of notification) $200,000 of 5Y2% convert¬

Dec. 7
ible

debentures

holders

first

be

to

offered

to

common

stock¬

rata basis; unsubscribed shares first
for par, for $92,600 of outstanding 5V2%
preferred stock (par $100); remainder to
be publicly offered.
Price — At 100%. Underwriter —
Pasadena Corp., Pasadena, Calif.
Proceeds—To redeem
unexchanged preferred stock and for working capital.
to

on

a

exchange,

pro

par

cumulative

Office—141 East Colorado Street Pasadena

1, Calif.

450,000 shares to 0be issued by the company and
180,000 shares are to be sold in equal amounts by OwensIllinois Glass Co. and Corning Glass Works. Price—To
be supplied by amendment.
Underwriters — Goldman,
Sachs

each).

Underwriter

capital.

—

None.

Proceeds

—

For

working

.

Nevada Oil

& Gas Co., Reno, Nev.
Dec. 6 (letter of notification) 48,350 shares of common
'stock.
Price —At par ($1 per share).
Underwriter —
None.

Proceeds

Office—304-305

—

Clay

To

purchase
drilling equipment.
Peters Building, 140 N. Virginia

Street, Reno, Nev.
Nevada
Dec.
'

24

Box

Uranium

2

Britain
filed

rate

expire

of
on

Machine

70,000

being offered to
at

other

corporate

Dec. 26 filed 163,986 shares of 5%

redeemable first

pre¬

ferred

stock, series A (par $25) to be offered to em¬
ployees. Price—$24.50 per share, of which $23.50 per
share is to be paid through payroll deductions under the
Employees' Stock Purchase Plan. Underwriter—None.
Proceeds—For

March
stock

26

new

one

common

share

common

sthock

(no

par)

stockholders of record Jan. 18

for

each

two

shares

Feb. 29.' Price—$20 per share.




held; rights
Underwriter—

•

.

.

filed

(par $25).

160,000

Price

shares of 5%%
—

prior preferred

To be supplied by amendment
Pro¬

Probable bidders: Halsey, Stuart & Co. Inc.;
Kidder, Peabody & Co.; Carl M. Loeb, Rhoades & Co. and
Blair, Rollins Co., Inc. (jointly); Salomon Bros. & Hutzler; Equitable Securities Corp. and R. W. Pressprich &
Co. (jointly); Stroud & Co., Inc. and Drexel & Co. (joint¬
ly); Merrill Lynch, Pierce, Fenner & Beane. Proceeds—
From sale of bonds, and from sale to parent, Ohio Edi¬

Co., of 80,000 shares of common stock for $2,400,000,
Pennsylvania's construction program. Bids
—To be received up to 11 a.m. (EST) on Feb. 5 at office
of
Commonwealth Services,
Inc., 20 Pine St., New
son

to be used for

5, N. Y.

Peoples Finance Corp., Montgomery, Ala.
Dec. 19 (letter of notification) 15,000 shares of common
stock (par $1). Price—$3 per share. Underwriter—Carl¬
son & Co., Birmingham, Ala.
Proceeds—To expand busi¬
ness.
Office—5 South Court St., Montgomery, Ala.

^ Peoples Loan & Finance Corp.
Jan. 18 (letter of notification) 2,500 shares of class B 6%
cumulative convertible preferred stock.
Price—At par
($100 per share). Proceeds—For working capital. Of¬
fice—110 Atlanta St., Marietta, Ga. Underwriter—None.
^ Phillips Packing Co., Inc., Cambridge, Md.
Jan. 10 (letter of notification) 1,000 shares of common
stock (no par). Price—At market (approximately $8.37V-t
per share).
Underwriter—Alex. Brown & Sons, Balti¬
more, Md.
Proceeds—To Albanus Phillips, Jr., the sell¬
ing stockholder.
Pioneer Air

Lines, Inc., Dallas, Tex. (1/28)
29 filed 120,000 shares of common stock (par $1).
Price—$12 per share. Underwriter—Cruttenden & Co.,
Chicago, 111. Proceeds—To purchase new equipment. Of¬
fering—Expected some time in January.
Nov.

if Pratt & Lambert, Inc., New York
Jan. 11 (letter of notification) 6,099 shares of capital
stock (no par) to be issued in exchange for 1,000 out¬
standing shares of capital stock of Salt Lake Glass &
Paint Co. (Utah). Of the 6,099 shares, the new holders
propose to
sell 2,050 shares on the New York . Curb
Exchange or by private sale. Price—At market. Under¬
writer—None.
Office—75
Tonawanda
St., Buffalo 7,
.!

of 4%% first
mortgage bonds, series A, due Feb. 1, 1972 (in denomi¬
nations of $1,000 each).
Price—At 102%. Proceeds—
For construction and corporate purposes. Underwriter—
Wachob-Bender Corp., Omaha, Neb.
filed

17

offered

(2/4)

Manufacturing Co.

434,189 shares of common stock (par $5)
first to common stockholders of record

about Feb. 4 on a basis of one

new

held; with a 14-day standby.

share for each four

Price—To be sup¬

by

amendment. Underwriters — Hornblower &
Paine, Webber, Jackson & Curtis. Proceeds
added to working capital and used for general

Weeks and
—To

be

corporate purposes. Business—Manufacture
electronic tubes and equipment.

Jan.

11

Island Insurance Co.,

and sale of

Providence, R. I.

(letter of notification) 92,942 shares of common

$1). Price—19 cents per share. Underwriter—
Siegel & Co., New York. Proceeds—To selling stock¬

stock (par
holders.

by the
Probable

entirety.

an

Inc., Union Securities Corp.
Ladenburg, Thalmann & Co.
(jointly);
Merrill
Lynch, Pierce, Fenner & Beane, Kidder, Peabody & Co.
Drexel

Co.

&

Co. Inc.;
United
Corp.; Dillon, Read &
Co. Inc.; F. S. Moseley & Co.; Riter & Co. Proceeds—
To the Attorney General of the U. S., the owner of the

Allen

&

States

Co.;

tical

(jointly);

new

a

company

& International

shares.

F.

cosmetic

in

first

or

Eberstadt

&

to be formed by

Securities

Business—Manufactures

and

ceived

and

sells

pharmaceu¬

Bids—Expected to be re¬
second week of March by Office of
products.

120 Broadway, New York, N. Y.

if Schooley Printing & Stationery Co.
Jan. 18 (letter of notification) 4,000 shares of 5% cumu¬
lative preferred stock, series A. Price—At par ($50 per
share).
Proceeds—For working capital.
Office—1434
Walnut St., Kansas City, Mo.
Underwriter—PrescottWright, Snider Co., Kansas City, Mo.

in the company's Em¬

ployees' Stock Purchase Plan for 1952 together with
25,263 shares of common stock (no par) to be purchased
under the plar*.
Seattle Steam Corp., Seattle, Wash.

(letter of notification) 3,000 shares of class B
($100 per share).
Underwriter—
None.
Proceeds — To pay part of purchase price of
Seattle steam heating properties and for working capital.
12

Price—At par

itock.

Office—1411 Fourth Ave., Seattle, Wash.

Servomechanisms, Inc. (2/4-5)
26 filed 350,000 shares of common stock
(par 20
cents),'of which 250,000 shares are for the account of the
company
and 100,000 shares for selling stockholders.
Price—To
be
supplied by amendment
(expected at
around $5 per share).
Underwriter—Van Alstyne Noel
Dec.

expansion

Corp., New York.
Proceeds—For
and working capital.

program

Silver Buckie Mining Co., Wallace,

Ida.
(letter of notification) 290,000 shares of com¬
mon stock
(par 10 cents). Price—32Vz cents per share.
Underwriter—Standard Securities Corp., Spokane, Wash.,
Sept. 25

and

Kellogg, Idaho. Proceeds — To six selling stock¬
Address—Box 469, Wallace, Idaho.

holders.

Southern

Petroleum Corp. (1/28-29)
shares of 6% cumulative convertible

California

Dec. 28 filed 112,000

preferred stock. Price—At par ($25 per share). Under¬
writer—The First California Co., Inc., San Francisco,
Calif. Proceeds—To purchase outstanding stock of Cul& Irwin, Inc., independent

berton

oil producer, and for

working capital.
•

Southwestern Public Service Co.

(2/1)

251,540 shares of common stock (par $1)
to be first offered for subscription by common stock¬
holders about Feb. 1 at rate of one new share for each
Jan.

11

filed

14. Price—To be
Underwriter—Dillon, Read &
Co. Inc., New York. Proceeds—From sale of stock, to¬
gether with funds from private sale of $10,000,000 new
3%% first mortgage bonds due 1982, to be used to pay
for property additions and to retire bank loans.
13

shares

held; rights to expire Feb.

supplied by amendment.

Soya Corp. of America
(letter of notification) 60,000 shares

of common
Underwriter—

Dec. 29
stock

1

(par

cent).

Proceeds—To

None.

Price—At market.
recondition

factory

Office—30 Rockefeller Plaza, New York

equipment.

20, N. Y.

Spear & Co., New York
filed 9,026 shares of $5 cumulative convertible
preferred stock, (no par), of which 7,526 shares
are to be offered to common stockholders for subscrip¬
tion on or before Feb. 29, and 1,500 shares to be sold to

Dec.

31

second

a

if Public Telephone Co., Blair, Neb.
Jan.
18
(letter of notification) $80,000

be

as

(no par).

offered

be

to

bidders: A. G. Becker & Co.

Oct.

bidding.

to

Attorney General of the U. S.

Offering—Indefinitely

Pennsylvania Power Co. (2/5)
Jan. 4 filed $6,000,000 of first mortgage bonds Feb. 1,
1982. Underwriters—To be determined by competitive

Jan.

issue

Scott Paper Co.
28 filed 6,000 memberships

postponed.

if Raytheon

Entire

Dec.

ceeds—For construction program.

York

Underwriter—None.

construction.

Underwriter—A. C. Allyn & Co., Inc., Chicago, 111.

Rhode

Co.

shares of

—

store.

Alien Property,

& Electric Co.

Gas

Pacific

purposes.

plied

Co., Lovelock, Nev.

(letter of notification)

653, Lovelock, Nev.

New
Jan.

Co.; Lazard Freres & Co.; and White, Weld &
capital, capital expenditures

shares

230,160 shares of capital
stock. Price—At par ($1 per share). Underwriter—None.
Proceeds—For machinery and equipment.
Address—P.
O.

&

Proceeds—For working

New York.

if Nelson Finance Co., Downingtown, Pa.
Jan. 17 (letter of notification) not less than $300,000
of debenture bonds.
Price—At par (in units of $100

pro

(approximately 33 in number) for a 30-day period,
an oversubscription privilege.
Unsubscribed shares
to be sold privately to individuals selected by company.
Price—At par ($10 per share). Underwriter—None. Pro¬
ceeds
For working capital. Business — Department

and

(par $5), of

Proceeds—For lease

Philipsburg, Pa.

Nov. 28

(2/7)

which

Peabody Coal Co.

Products

Mineral

Price—At
Proceeds—

Corp.

Jan. 18 filed 630,000 shares of common stock

and

"Dec. 10

a

1951

with

and

tal.

Insurance

Co., Los Angeles, Calif.

St., New York.

ferred

Midwestern

Merchants

(J. W.)

100,000 shares of capital stock to be offelfcd
rata basis to stockholders of record Nov. 23,

if Schering Corp., Bloomfieid, N. J.
Jan. 18 filed 440,000 shares of common stock

Co.

temporarily. Corporation is considering increas¬
ing its financing and is now preparing a full registration
'statement. Offering now expected about middle of Feb.

Robinson

\

Jan. 4 filed

Corp.
Nov. 16 (letter of notification) 10 shares of common stock
(no par). Price—$1,000 per unit.
Underwriter—E. M
Warburg & Co. Inc., New York. Proceeds—To Eric M.
Warburg, the selling stockholder.
Office—52 William

install mill and for

mining equipment and working capi¬
Offering—Originally scheduled for Dec. 5, but de¬

Ritchie Associates Finance Corp.
Sept. 18 (letter of notification) $200,000 of 6% 15-year
debentures, dated July 1, 1951, to be issued in multiples
of $100. Underwriter—Cohu & Co., New York.
Proceeds
—To retire debts and purchase building. Office—2 East
Church St., Frederick, Md.

on

Nu-Enamel

Nov. 8

43

selected

None.
two

group.

Price—$105 per share. Underwriter—
M. Kahn and A. J. Kaminsky,

Proceeds—To A.

selling

stockholders.

Business

—

Furniture store

chain.

Specialized Products Corp., Birmingham,

Ala.

Sept. 26 (letter of notification) 50,000 shares of common
flock
Price—$1 per share. Underwriter—Carlson & Co.,

Birmingham, Ala.
idvertising costs.
lam 9, Ala.

Proceeds—For operating capital and
Office—2807 Central Ave., Birming-

if Sun Valley Lead-Silver Mines, Inc.,
Ketchum, Idaho
Jan. 9 (letter of notification) 500,000 shares of capital
stock (par 10 cents). Price—25 cents per share. Under¬
writer— None.
Proceeds — For development of mine.
Address—P. O. Box 57, Ketchum, Idaho.
v Tele-Trip Policy Co., Inc.
Jan. 16 (letter of notification) 7,000 shares of
stock (par 10 cents).
Price—$2.75 per share.

Continued

on

capital
Underpage 44

<14

The Commercial and Financial Chronicle

(408)

Continued

members-will act

who

the

is

selling stockholder.

as

Texas

amendment.

Dallas, Tex.

in

under the trade name "Haydite" and
sells lightweight concrete masonry
Offering—Expected week of Feb. 4.

of

(letter of notification) 30,000 shares of common
(no par). Price—$10 per share. Proceeds—For
transmitter and other equipment.
Office—

Price—At

Central

Central

22

filed

20,000 shares of common stock (no par)
and 2,000 shares of 5% cumulative preferred stock (par
$100) (common stock to be sold only on basis of ten

shares

for

each

preferred share purchased). Price—Of
common, $10 per share, and of preferred, $100 per share.
Underwriter—None. Proceeds—For new equipment and

per

Corp., Washington, D. C.
(1/28-29).
July 31 filed 1,000,000 shares of common stock (par $1).
Price—At par.
Underwriter—Aigeltinger & Co., New
York (by amendment Jan. 8, 1952). Proceeds—For com¬
pletion of well, for acquisitions, for drilling expenses,
etc. and working capital. Statement effective Oct. 8.

Jan.

100%

,

the
its

1951-52

program

of

■

tentatively scheduled to be
C®JST) on Jan. 29. Statement

received

up

to

to

sell

and

per

share.

Under¬

v

Van Norman Co., Springfield,

/

v

discussing additional financing.

Traditional

Boston,

Mass,

Withdrawal—Request filed

Un¬

for' construction

Inc., New York.

Jan.
000

Kinnard &

$4,000,000

on

machinery

and working
Jan. 17 to withdraw

Dec.

able underwriter.

\

"

-

Nov. 26 it

an

2

it

~

announced that it is the present intention

at this

was

time.

Columbus & Southern Ohio Electric Co.?
Dec.

it

21

was

announced

1953

contemplates

company

penditures of at least
to

meet

an additional $50,000,000
demand for electric service.

the

financing is planned.
Consolidated

(jointly); The First Boston Corp.

Jan.

2

,

Edison

company

V

ex¬

through
Further

'

:/

/ '

Co. of New York,.Inc.

announced

its

plans

to

about

spend

★ Bridgeport Hydraulic Co., Bridgeport, Conn.

$105,000,000 for new construction during 1952; of which

Jan. 15 it

it is

plans to offer to
44,000 additional shares of com¬
mon
stock.
Price—Between $24 and $26.75 per share.
Underwriter—Smith, Ramsey & Co., Bridgeport, Conn.
Proceeds—To finance improvements and additions and
to liquidate short term bank loans.
Offering—Expected
in March.

■

Jan.

subject to a
Bberstadt & Co. is financial consultant for
Warner-Hud«uit, Inc.) Statement effective Dec. 28.1

17

the

""

:

California

basis; offer^ expires on Jan. 29,
15 days' extension. Underwriter—None
(F

Electric

Power

,

-

•

Co.

FPC

granted the company authority to
promissory notes during 1952 to Bank of
America, N. T. & S. A,, to mature in 12 months. The
issue $9,000,000

•

proceeds would be used
steam

electric

as

interim financing for a

new

generating plant and other additions to
Permanent financing not expected until late
this year or early in 1953. Probable bidders for bonds
property.

proposed to raise $65,000,000 from new financing.
presently borrowing $31,000,000 from banks. Under¬
writers—For bonds, to be determined by competitive

announced that company

was

It is

stockholders

common

two-for-one

West Penn Electric Co.
(1/30) V
Dec. 28 filed 440,000 shares of common stock
(no par)
!o be offered for subscription by common
stockholders

v-';>v.-

,

in 1952 for the purpose
2%% bank notes due
June 15, 1952. The type or aggregate amount of securi¬
ties which may be sold during 1952 cannot be determined

issue of not exceeding $50,000,000 in

Union Securities Corp.

293,960 shares of common stock (par $1)
being offered in exchange for 146,980 shares of Maltine

•

was

Inc.

of the company to sell securities
of refunding the $20,000,000 of

petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Kuhn, Loeb & Co. and Lazard Freres & Co. (joint¬
ly); Morgan Stanley & Co.; White, Weld & Co. and

Warner-Hudnut, Inc.




'.

-

in 1952. Underwriters—For bonds to be decided
by com¬

Dec. 12 filed

•

'

the Holding Company

announced that company's construction
next three years calls for the expenditure
of $247,000,000 of which about
$81,700,000 will be spent

Extension, Inc., Wallace, Idaho
(letter of notification) 120,000 shares of
capital
stock (par 20 cents). Price—82 cents
per share. Under¬
writer—J. A. Hogle & Co., Salt Lake
City, Utah. Pro¬
ceeds
To Callahan Zinc-Lead
Co., the selling stock¬
holder. Co's Address—P. O. Box
709, Wallace, Ida.

•

^

approved al)lan filed by Mission Oil Co.

its holding company,

velopment Co. designed to

Bell Telephone Co. of Pennsylvania

Vulcan

'

SEC

26

subsidiary, Southwestern De¬
effectuate compliance with
Act* This development is expected
to result in early registration of Colorado Interstate Gas
Co. common stock, with Union Securities Corp. as prob¬
and

debt securities.

Jan.

Dec. 13

if:

>.

e

.

Colorado Interstate Gas Co.-'~:

announced stockholders will vote Feb. 28

was

authorizing

new

Viking Plywood & Lumber Corp., Seattle, Wash.
Oct. 19 filed 22,500 shares of common stock
(no par) to
be offered to employee-stockholders in
minimum units
Of 125 shares per unit.
Price—$20 per share.
Under¬
writer—None.
Proceeds—To purchase 50% of capital
atock of Snellstrom Lumber Co.

•

'j/•/

...

Otis, Inc., New York, underwriting.? Offering

probably in February.

Under¬

program for

a

program.:;~

Inc.'
/'• /
11 it was reported that early registration of- $1,000,convertible debentures is expected with Gearhart,

Cinerama,

Telephone Co. of Canada

Jan. 15 it

-

on

Electric Co.

Columbia Gas System,

Bell

Mass.

statement.

Co.

/

&

Gas

.

Nov. 21 filed $2,400,000 of
4%% convertible sinking fund
debentures due Dec. 1, 1969..
Price—100% and accrued
Interest.
Underwriter—Paine, Webber, Jackson & Curtis,

capital.

improve¬

expects to market
and $30,000,000 ot
new bonds.
Probable bidders: Halsey, Stuart & Co. Inc.;
Morgan Stanley & Co.; Kuhn, Loeb & Co. and Salomon
Bros. & Hutzler (jointly); Blyth & Co., Inc., and The
First Boston/Corp./ (jointly); Union Securities Corp.;
Glore, Forgan & Co. and White, Weld & Co. (jointly);
Lehman Brothers; Harriman Ripley & Co., Inc.; Merrill
Lynch, Pierce, Fenner & Beane. Proceeds will be used

,

Office—

the remainder used for capital

7 it was reported company
in 1952 between $25,000,000

April
early

reported that the company is understood

was

sought ICC permission to issue $52,-

company

Cincinnati

bonds, to be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
The First Boston Corp. and Drexel & Co.
(jointly);
Union
Securities
Corp. and
Smith, Barney & Co.
(jointly); Lehman Brothers; White, Weld & Co. and
Shields & Co. (jointly).
Previous preferred stock fi¬
nancing was done privately through Union Securities
Corp. and Smith, Barney & Co. Proceeds—For con¬
struction program.
,;V",

Bldg., Houston, Texas.

Proceeds—For

issue

gage bonds during the first half of 1952, and
of preferred stock in the last half of the

a.m.

U. S. Vitamin Corp.
Jan. 9 filed voting trust certificate
for 15,000 shares of

_

may

^ Atlantic City Electric Co.
Jan. 21, B. L. England, President, stated that the com¬
pany expects to issue and sell $5,000,000 of first mort¬

common

working capital.

(par $1).

it

23

1952, and

1,

writers—For

atock (par 10 cents). Price—50 cents
writer—None. Proceeds—For

stock

7

be

plans sale of $2,400,000

ments.

year.

Corp., Houston, Tex.
notification) 600,000 shares of

common

company

derwriter: F. Eberstadt & Co.

effective Jan. 16.

U. S. Oil & Gas
Dec. 20 (letter of

€12 M & M

reported

stock.

Co.

Armstrong Rubber Co.

Bids—

11:30

common

company

competitive bidding. The bonds will be dated not earlier
than March 1, 1952 and mature not later than Sept. 1,
1962.
Proceeds—To pay at maturity $49,988,000 of 4%
non-callable consolidated first mortgage bonds due July

determined

Jan.

corporation

subsidiary, United Gas Pipe Line Co.;

was

the
Gas

reported

was

500,000 of first and refunding mortgage bonds without

Underwriters—May
by competitive bidding. Probable bid¬
Halsey, Stuart & Co. Inc.; The First Boston Corp.
and Lazard Freres & Co. (jointly); Union Securities
Corp.; Smith, Barney & Co.; Equitable Securities Corp,
Proceeds—To repay bank loans and for new construction.
be

mortgage and collateral
Underwriters—To be determined

construction

Jan.

$35,000,000 of first mortgage bonds.

by competitive bidding. Probable bidders: Halsey, Stu¬
art & Co. Inc.; Morgan
Stanley & Co., White, Weld &
Co. and Equitable Securities Corp.
(jointly); The First
Boston Corp., Harriman
Ripley & Co., Inc., and Gold¬
man, Sachs & Co. (jointly).
Proceeds—To finance in
and

it

6

on

16 it

Chicago & Western Indiana RR.

to whether these funds would be

Louisiana

Halsey, Stuart & Co. Inc.; Sal¬

Hutzler.

&

Bros.

equipment trust certificates, series 00 to mature semi¬
annually over a period of 15 years. Probable bidders:
Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler.
Bids—Expected to be received on Feb. 28. •

ders:

United Gas Corp. (1/29)
Dec. 20 filed $50,000,000 first

part

as

stock dividend

Dec.

Office—810 First Ave., N. E.,

/

new

(2/28)
Jan.

was

Arkansas

(par $10) to be offered for subscription by stock¬
Price—$26 per share. Underwriter—None. Pro¬

Cedar Rapids, la.

Proceeds—-For

Corp.

/V' -7;

'•

+ Chicago, Milwaukee, St. Paul & Pacific RR.

borrowing or equity financing. Probable
Underwriters—Morgan Stanley & Co., Clark, Dodge &
Co. and F. S. Moseley & Co. Stockholders on April 29
will vote on approving a four-for-one split-up of the
preferred and common stocks which in effect will be a

holders.

trust bonds due 1972.

9, it

Probable bidders:

omon

raised through

Office—Merchandise Mart, Chi¬

capital.

v

the

9, Nathan Chirelstein, Chairman, said it is probable
short time will register with

tion has been made

III.

United Fire & Casualty Co., Cedar
Rapjds, Iowa
Nov. 16 (letter of notification) 2,161 shares of
capital
etock

V

Bids will be

$50,000,000 of new money to provide in part the funds
required for the proposed expansion of its plant facili¬
ties, and for additional working capital. No determina¬

bank loans and for construction of natural gas
pipeline

ceeds—To restore

Securities

'

^

announced company has under considera¬
tion various plans of financing to raise approximately

(letter of notification) $165,000 of collateral 5%
1, 1955. Price—At par (in denominations
of $1,000 each). Underwriter—None. Proceeds—To
repay

.

Union

(jointly);

construction.

American Can Co.

notes due Jan.

,

Corp.; Carl M. Loeb, Rhoades & Co.; Lehman Brothers
Glore, Forgan & Co. / (jointly); Merrill Lynch,
Pierce, Fenner & Beane and Salomon Bros. & Hutzler

Underwriter—Hill, Thompson & Co., Inc., New York.

Jan. 16

1

company

and

an
issue of long-term convertible debentures,
part of which will be offered in exchange for any out-,
standing three-year convertible notes dated Nov. 1, 1951.

United Canadian Oil

54, 111.

&

stated

sive.

Nov.

Offering—Withdrawn.

cago

Power

was

the SEC

(letter of notification) 5,000 shares of capital
atock (par $5). Price—At market (last sale price $6.12V2
on Dec. 31, 1951).
Underwriter—Auchincloss, Parker &
Kedpath, New York, who are the selling stockholders.

by the Georgia Gas Co.

it

10

of

Allied Electric Products, Inc., Irvfngton, N. J.

2

Utilities Co., Chicago,

bank

Chicago & Eastern Illinois RR. (1/31)
received up to noon (CST) on Jan. 31 at
company's office in Chicago, 111., for the purchase
from the company of $2,100,000 equipment trust certi¬
ficates, series I, to be dated Feb. 1, 1952 and due $70,000
semi-annually from Aug. 1, 1952 to Feb. 1, 1967, inclu¬

Unexcelled Chemical Corp., N. Y.

United Cities

,

that the company within a

^working capital.
Jan.

.

Co.

Power

Light Co. (3/4)
plans issuance and sale
$10,000,000 first mortgage bonds, series D, about
March 4. Underwriters—To be determined by competi¬
tive bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Kuhn, Loeb & Co., A. C.:Allyn & Co., Inc. and Bear,
Stearns & Co. (jointly);; Blyth & Co., Inc., Harriman
Ripley & Co., Inc. and Stone & Webster Securities Corp.(jointly); Kidder, Peabody & Co.; The First Boston
Jan.

share).
Underwriter—
outstanding 4% demand notes.

($25

par

Aeroquip Corp.
Jan. 4, Don T. McKone, Chairman, announced that con¬
sideration was being given to the possibility of equity
financing. On Feb. 18, stockholders will vote ♦ on in¬
creasing authorized common stock to 1,000,000 from
750,000 shares, and on issuance of 37,500 shares as a
5% stock dividend.
Underwriter—Watling Lerchen &
Co., Detroit Mich. Proceeds—For additional working
capital.

^ArTri-State Telecasting Corp., Chattanooga, Tenn.

Maine

Dec. 31, W. C. Wyman, President, announced that "addi¬
tional requirements for 1952, estimated at about $6,000,-

Prospective Offerings

etock

Jan.

y'"■:;

Co., Inc.

con¬

denominations

Dec.

■

Inc.
contemplates sale

in 1952 (probably to stockholders through rights), fol¬
lowing the merger into company of Gulf Public Service

Box

None. Proceeds—To repay

Transgulf Corp., Houston, Tex.
3 (letter of notification) 200,000 shares of capital
(par 10 cents).
Price—$1.05 per share.
Underwriter—None.
Proceeds—For working capital.
Offict
—1 Main Street, Houston, Tex.

Electric Co.,

announced that company

000, are expected to be obtained by short term
loans, pending further permanent financing."

stock.

Underwriter—None.

Vegas, Nev.

(in

was

$2,980,000 of additional debentures (probably pri¬
vately) and $1,500,000 additional common stock early

Proceeds—To retire indebtedness. Ad¬
657, Olympia, Wash. Underwriter—

each).
O.

par

Louisiana

Central

Dec. 3 it
of

None.

television

122 So. Fourth St., Las

vately through Merrill Lynch, Pierce, Fenner & Beane.

•jc Woodbury Telephone Co., Woodbury, Conn.
Jan. 14 (letter of notification)
1,325 shares of capital

17

atock

$100

dress—P.

Trans-American Television Corp.
Jan.

Price—At

Merrill

Lynch, Pierce, Fenner & Beane (jointly); Salomon Bros.
Hutzler. Latest preferred stock issue was placed pri¬

7

debentures.

Thursday, January 24, 1952

&

stocks of three subsidiaries. Bids—Expected

(EST) Jan 30.

vertible

manufactures

units, etc.

a.m.

.

and/or debentures: Halsey, Stuart & Co. Inc. and

eight

+ Western Metalcraft, Inc., Olympia, Wash.
Jan. 14 (letter of notification) $270,000 of class A

shale aggregate
and

or

common

11

Business—Produces and sells lightweight expanded clay

/

each

(jointly). Proceeds—To be invested

& Co.

Sachs

man,

Proceeds—To be added to general funds.

due

for

Ripley & Co. Inc.; W. C. Langley & Co. and The
First Boston Corp. (jointly); Lehman Brothers and Gold¬

Inc., Dallas, Texas (2/4-9)
$1,000,000 of 15-year 6% convertible de¬
Jan. 15, 1967.
Price—To be supplied by
Underwriter—Rauscher, Pierce
&
Co.,

bentures

share

man

Industries,

filed

11

one

competitive bidding. Probable bidders: Harri¬

mined by

Office—420 Lexington

Ave., New York 17, N. Y.
Jan.

of

rate

at

held; rights to expire on Feb. 18. Price—To be
supplied by amendment. Underwriters—To be deter¬

President,

Shasheen,

M.

John

Proceeds—To

31

shares

writer—None, but certain NASD
brokers.

Jan.

of record

from page 43

..

bidding.

Probable

bidders:

Halsey," Stuart

&

Co.-Inc.;

Morgan Stanley & Co.; The First Boston Corp.' •
;

•

*'; • :

Consolidated Engineering Corp.
Dec 27 it was reported company may do some additional
financing in 1952. Blyth & Co., Inc. underwrote common
stock offering last December.

Consolidated Gas,
Baltimore

Electric Light

Power Co. of

stated that company plans to issue and sell
both stocks and bonds during 1952 to an amount suffi¬

Dec. 24 it

was

cient to raise approximately $22,000,000. Underwriters—
For bonds to be determined by competitive bidding.

Volume 175

Number 5084

.

The Commercial and Financial Chronicle

.

.

(409)
Probable bidders:

Halsey, Stuart & Co. Inc.; White, Weld
Boston Corp. (jointly); Harriman
Ripley & Co., Inc. and Alex. Brown & Sons (jointly).
The First Boston Corp., Alex. Brown & Sons and John C.
Legg & Co (jointly) handled latest common stock fi¬
nancing, while White, Weld & Co. handled last preferred
&

Co. and The

stock sale.

First

Proceeds—^For

Expected in March

or

construction.

new

Offering—

by

competitive bidding.
Probable bidders for bonds:
Halsey, Stuart & Co. Inc.; White, Weld & Co.; Merrill
Lynch, Pierce, Fenner & Beane; Smith, Barney & Co.;
Salomon Bros. & Hutzler.

Corp., New Haven, Conn.
Aug. 22 it was stated that the company plans issuance
and sale of 30,000 shares of preferred stock (par $10)
each share to carry a bonus of common stock.
Under¬
writer
Ira Haupt & Co., New York. Proceeds — For
expansion program.
—

County Gas Co., Atlantic Highlands, N. J.
was announced company will
pay about $15,000,000 for the gas properties of Jersey Central Power &
Light Co. Method and type of securities to be sold to
finance this purchase not yet determined.
Nov. 15 it

Co.

Jan.

22

it

,

Iowa
Nov.

a

sell

Underwriters—To be determined by competitive
bidding.
Probable bidders: Lehman Brothers; W. C.
Langley & Co.; White, Weld & Co. and Shields & Co.
(jointly); Morgan Stanley & Co.; Blyth & Co., Inc. Pro¬

ceeds—For construction program.

-

in

securities

21

Max J. Zivian, President, announced that com¬
plans to issue and sell 600,000 shares of new con¬
vertible preferred stock (par $25) and $25,000,000 of

bonds. Price—To be determined later.
preferred stock, Van Alstyne, Noel
& Co.; and for bonds, Halsey, Stuart & Co. Inc. and Van
Alstyne, Noel & Co.
Proceeds—To retire $13,950,000
presently outstanding first mortgage bonds and for ex¬
pansion program. Meeting—Stockholders will vote Feb/
mortgage

Underwriters—For

the financing proposals.

on

future

near

sale
in

privately.

of

first

mortgage bonds and

1953.

Previous

bond

financing

P.

Water Supply Co.
stated that company has applied to New
Commission for authority to issue and sell

20.

Traditional

Underwriter—Blyth & Co., Inc.

company

used

proceeds

for jexpansion.

Traditional

Jan.
be

11 it

Power

Corp.

announced that additional financing will

was

complete the company's construction
program and it is contemplated that the balance of new
capital needed will be obtained from the sale of common
stock and first mortgage bonds. Company has borrowed
$4,000,000 under a bank credit recently arranged which
provides for short-term bank borrowings of not more
than $10,000,000.
Previous bond financing was done
privately. Common stock may be offered to common
stockholders, with Kidder, Peabody & Co. and Merrill

Lynch, Pierce, Fenner & Beane acting

as

agents.

Foote Bros. Gear & Machine Corp.

Oct. 25 it
tional

reported that

was

stock

common

early

company

in

1952.

may offer addi¬
Probable under¬

Bros.

omon

&

Hutzler

and

Securities

Union

Corp.

(jointly); Equitable Securities Corp.; Lehman Brothers
and Bear, Stearns & Co. (jointly); Harriman
Ripley &
Proceeds—For

construction.

new

it

announced

plans to increase
authorized common stock from 300,000 shares (259,422
shares outstanding) to 500,000 shares of $2.50 par value.
The

was

company

states that "there is no present plan of
capital financing either of an equity type or loan." The
directors, however, "are studying several plant expan¬
sion programs which may eventually require more capi¬
tal." A group headed by Estabrook & Co. underwrote an
company

issue ~of

stock

common

to

stockholders

in

April, 1951.

Stockholders will meet Feb. 21.
Hahn

Aviation

Products,

—

For

Inc.

engineering, acquisition of machinery

St., Philadelphia 33, Pa.

Idaho

Power

18, T. E. Roach, President, announced that the
company's present plans consist of the sale this year of
about 225,000 additional shares of common stock (par

$20), but

no preferred stock. Underwriters—Latest com¬
stock financing in April,
1949, was handled by

Blyth & Co., Inc.; Lazard Freres & Co.; and Wegener
& Daly Corp. Proceeds—To repay bank loans and for
construction

Illinois

program.

Central

cluding Feb. 1, 1967, will be received at the office of the
company, Room 301, 135 East 11th Place, Chicago 5, 111.,

(CST)

on

Feb. 5. Probable bidders:

Halsey,

Stuart & Co. Inc.; Salomon Bros. & Hutzler.

RR.

Nov. 16, the directors authorized, pending a favorable
market, the issue and sale of up to $25,000,000 of consoli¬
dated mortgage bonds. Underwriters — May be deter¬
mined by competitive bidding. Probable bidders: Halsey,
Stuart & Co. Inc.; Kuhn, Loeb & Co.; Morgan Stanley &
Co. Proceeds — To retire debt maturing in next four
years

and to replace depleted working capital.,

Interstate

Jan.

18

it

plans to issue and sell

Power

Co.

disclosed

(3/18)
that

-

plans to issue
and sell $2,000,000 of first mortgage bonds and 350,000
shares of common stock. Underwriters—To be decided
was




company

in

will

about

or

be

that

permanently fi¬

March,

Under¬

1952.

writers
To be determined
by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Harrimant
Ripley & Co., Inc.; Salomon Bros. & Hutzler;
—

Peabody

&
Co.; The First
Brothers; White, Weld & Co.

Boston

Corp.;

Lehman.

Jan. 21
21

on

it

announced

was

stockholders will

vote

March

increasing authorized capital stock from 125,000

shares to 600,000 shares, to
provide, in part, for payment
of a 200% stock dividend.
It is also planned to make

public offering of

shares

when

financing

in

a

portion of the proposed authorized

market

1946

conditions

was

made

to

are

favorable.

common

Latest

stockholders.

Proceeds would be added to
working capital.

National

Union

Radio

Corp.
Meinken, President, announced com¬
pany plans to raise more than $5,000,000 of "new money"
through sale of stock or from loans. Proceeds—For ex¬
pansion program, involving

New England Power Co.
Dec. 12 company applied to SEC for
authority to increase
authorized bank borrowings from

bidding. Probable bidders: Halsey, Stuart & Co.
Kidder, Peabody & Co. and White, Weld & Co.
(jointly); Lehman Brothers and Salomon Bros. & Hutzler
(jointly); Blyth & Co., Inc.; Union Securities Corp. and
Merrill Lynch, Pierce, Fenner & Beane (jointly).
Koppers Co.,

Jan. 10 it

Inc., Pittsburgh Pa.

was

Corp., New York. Proceeds—For expansion
Registration—Expected in February. -

program.

I,

Laclede Gas Co.
Nov. 10 it

was announced company has requested Missis¬
sippi River Fuel Corp. to dispose of its Laclede Gas Co.
(248,400 shares, or 8.2% of total 3,039,860 shares out¬
standing). Latter has appealed to Missouri P. S. Com¬

mission and the SEC.

\

/.

,

(J. M.) Co., Inc., N. J.

5, N. Y., for the purchase from the Attorney General of
the United States of 1,225 shares of capital stock (par
$100) of this company. This constitutes 84.19% of the
and

$12,000,000 to $16,of this indebtedness may be
through issuance of common stock to parent
(New England Electric System) and first mortgage bonds
early in 1952. Underwriters
For bonds, to be deter¬
mined by competitive bidding. Probable bidders:
Halsey,

000,000.

it

22

outstanding capital stock.

vote

on

a

was

proposal

by $3,500,000.
are

to

Stuart & Co. Inc.; Lehman

Brothers; Blyth & Co., Inc.;
Equitable Securities Corp. and Blair, Rollins & Co. Inc.
(jointly); Merrill Lynch, Pierce, Fenner & Beane; Harri-;
man Ripley &
Co., Inc.; The First Boston Corp.; Kuhn,
Loeb & Co., Union Securities
Corp. and Salomon Bros. &
Hutzler (jointly).
New

Sept.

Jan.

10

increase

company

Feb.

authorized

will

5

long-term

If approved, bonds will be sold as
debt financing was done
,

(Glenn

.

L.)- Co.

announced plan to sell

estimated

an

$6,000,000 of convertible debentures to a group of pri¬
vate investors and additional common stock to common
stockholders. Underwriter—Smith, Barney & Co., New
production programs,
debentures

sale of

debentures to

help meet
and from sale of stock to retire

within six months.

v

plans to spend from $15,000,000 to $20,000,000 for
expansion, but that plans for financing have not yet

completed. Traditional underwriter—F. S. Moseley
.v

■

Edison

Co.

•.

t

'

(3/18)

14 company filed an

application with the SEC for
authority to issue and sell $7,800,000 of first mortgage
bonds, 40,000 shares of preferred stock (par $100) and
40,000 shares of common stock (the latter issue to be
sold to parent, General Public Utilities Corp.). Under¬
writers—For

bonds

and

preferred

stock

to

be

deter¬

competitive bidding.
Probable bidders for
bonds—Halsey, Stuart & Co. Inc.; Salomon Bros. &
Hutzler; Union Securities Corp.; Drexel & Co.; The
First Boston Corp.; White, Weld & Co. and Equitable
Securities Corp. (jointly); Kidder, Peabody & Co.; Carl
M. Loeb, Rhoades & Co.
Probable bidders for preferred
by

—Kidder, Peabody

& Co.;

Smith, Barney & Co.

and

Goldman, Sachs & Co. (jointly); Carl M. Loeb, Rhoades
&

was

reported

that

•*

company

plans

.

to

issue
Under¬

,

Corp. and Carl M. Loeb, Rhoades & Co. (jointly); The
First Boston Corp.; Merrill
Lynch, Pierce, Fenner &
Beane; Kidder, Peabody & Co.; The First Boston Corp.;
W. C. Langley & Co.; Harriman
Ripley & Co., Inc.
Pro-,
ceeds—To repay bank loans and for construction
pro¬
gram.
'
n

England Telephone & Telegraph Co..
F. A. Cosgrove, Vice-President, said a perma¬
financing program will have to be undertaken in

Dec. 20,
nent

1952 to repay about
$43,000,000 short-term bank borrow^
ings. Underwriters—For bonds may be determined by

competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Morgan
Stanley & Co. In case of common stock
financing there will be no underwriting.
New York State Electric & Gas Co.

Jan. 7 company applied to New York P. S.
for

Commission

authority to issue and sell to private investors

issue of $10,000,000 of

an

debentures.

Northern Natural Gas Co.

pany

Jan.

it

Nov. 16 it

Aug. 10, Alvan A. Voit, President, stated that the com¬

Metropolitan

England Power Co.

about 50,000 shares of preferred stock.
writers—To be determined by competitive
bidding. Prob¬
able bidders:
Lehman Brothers; Equitable Securities

.

Mengel Co.

been

6

New

on

Previous

needed.

privately.
Martin

stockholders

announced

A major portion

—

if Lincoln Telephone & Telegraph Co.
Jan.

plant to be constructed

and sell

;

(1/30)

Bids will be received up to 11 a.m. (EST) on Jan. 30 at
the office of Alien Property, 120 Broadway, New York

issued

a new

Philadelphia. Underwriter—Probably Collin, Norton
Co., Toledo, O. Registration—Expected in two monthsw

financed

reported company plans issuance and sale
to public of 250,000 additional shares of common stock
(par $10).. Traditional Underwriter—The First Boston

mined

Illinois Central

bonds

tive

(2/5)

series HH, to be dated Feb. 1, 1952 and to
mature in 30 equal semi-annual instalments to and in¬

noon

company

.

tificates,

to

reported

& Co.

RR.

with

&

Bids for the purchase of $4,110,000 equipment trust cer¬

up

was

York. Proceeds—From

Co.

Jan.

mon

nanced

contemplates

company

$7,500,000 of note indebteness

in

debt

and other corporate purposes. Office—2636 No. Hutchin¬
son

Co.

announced

in April or May $12,000,000 30-year first mortgage bonds,
series D. Underwriters—To be determined by competi¬

funds

Aug. 24 it was announced company proposes to offei
12,500 additional common stock (par.$l), in addition to
17,500 shares recently offered. Underwriter — None.
Proceeds

was

Nov. 29, Kenneth C.

Kentucky Utilities Co.
Dec. 10 it

Lehmann

Foote Mineral Co.
24

it

a

Corp.; White, Weld & Co. and Shields & Co.
(jointly); Smith, Barney & Co.; Kuhn, Loeb & Co., Sal¬

writer—A. C. Allyn & Co., Inc., Chicago, 111.

Dec.

7

Boston

to

necessary

Jan.

Inc.;

under¬

writer: J. Arthur Warner & Co. Inc., New York.

Florida

stock.

^c National Research Corp., Cambridge, Mass.

Co., Inc.

500,000 shares, of which 420,000 shares are outstanding.
Additional shares may be issued to stockholders, and
the

common

Narragansett Electric.

mortgage bonds (this is in addition to present preferred
and common stock financing.
Underwriters—To be de¬
termined
by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Glore, Forgan & Co.; Blyth
& Co., Inc. and Lazard Freres & Co.
(jointly); The First

Eastern Stainless Steel

Corp.
Oct. 25 the stockholders approved a proposal increasing
the
authorized capital
stock to 750,000 shares from

gage bonds and

Kidderr

Kansas City Power & Light Co.
4

authority to purchase the natural gas properties of
Mississippi Power & Light Co. for a basic purchase prico
of $11,151,128, and
expects to issue and sell first mort¬

was

S.

$1,200,000 of first mortgage bonds (probably privately)
and approximately 13,600 shares of common stock.
Ap¬
proximately $200,000 of stock will be sold the first week
in February and an additional
$100,000 is slated after
March

per share. Underwriter—
Proceeds—For general corporate purposes.

3, it was reported that this company formed by
Equitable Securities Corp., has applied to the FPC for

Proceeds from bond sale, to repay $7,000,000

it

3

industrial
^

*

Mississippi Valley Gas Co.

bank loans.

Jamaica

new

Jan.

done

was

build

was announced Illinois Commerce
Commission
has authorized issuance and sale of
87,200 shares of com¬
mon stock
(no par). Price—$1

con¬

additional

$5,000,000

the funds to be used to

Midway Airlines, Inc.

None.

approximately

N. Y.
plans to expand its
the near future
and to
register its
the SEC preliminary to a
large public

Dec. 15 it

plans to issue and

company

announced
that
it plans to
issue
and sell in 1952 about
$12,000,000 principal amount first

pany

19

the

Reg¬
be

program.

Corp.,

company

projects in Israel.

Bids—Scheduled to

18.

Industries

announced

in

with

offering,

Utilities Co.

announced

was

templates

Jan.

.

if Detroit Steel Corp., Detroit, Mich.

first

Southern
it

construction

Feb.

on

was

securities

March 18.

was

stock.

Jan.

Proceeds—For

on

14

York

reported that company expects to file
registration statement with SEC next week covering
proposed issue of $5,000,000 par value of preferred

a

Inc.

received

Dec.

if Delaware Power & Light Co.

common

Blyth & Co., Inc.; Lehman Brothers; Merrill
Lynch, Pierce, Fenner & Beane and Kidder, Peabody
& Co.
(jointly); Smith, Barney & Co.; Harriman Ripley

istration—Expected

East

it

capitalization

stock:

&

April.

Cott Beverage

Probable bidders for

Middle
Oct. 31

45

Co.; Drexel & Co.; Harriman Ripley & Co. Inc. and
(jointly); Salomon Bros. & Hutz¬

Union Securities Corp.

ler; The First Boston Corp. Bids—Tentatively scheduled
for noon (EST) March 18.
Registration—Expected on
January 29.

was reported that permanent
financing is not
expected to be concluded until 1952 (probable in Janu¬
ary or February) to repay $42,000,000 of bank loans and
to provide additional funds for
company's construction

program. This

financing may consist of about $32,000,000
debentures and $18,000,000 of common stock. Latter
may be offered to common stockholders, without under¬
of

writing. Probable bidders for debentures: Halsey, Stuart
& Co. Inc.; Blyth & Co.,
Inc.; The First Boston Corp. and
Kidder, Peabody & Co. (jointly).
Northern

States

Power Co.

(Minn.)

;

Jan. 16, B. F. Braheney,
President, announced that com¬
pany will have to raise between $30,000,000 and $32,500,000 • this year to finance its construction program.
About two-thirds of the amount needed will be in the
form of debt issues and the balance

common

1,100,000 shares) the latter issued first to
holders.

Underwriters—To

stock (about

common

stock¬

be determined

by competi-^
tive bidding.
Prqbra&Lq bidders for stock and bonds:
Smith Barney & <Cp.juT.he First Boston Corp.;
Glore;
Forgan & Co.; Lehman Brothers and Riter & Co.
(jointly); Equitable Securities Corp.; ,Union Securities

Corp.; Merrill Lynch, Pierce, Fenner & Beane; Kidder,
Peabody & Co. and White, Weld & Co. (jointly). Prob¬
able bidder

on

bonds

only: Halsey, Stuart & Co. Inc.

Continued

on

page

46

The Commercial and Financial Chronicle
46

Continued

Jan.

000,000 shares in order to make additional
for such corporate purposes as acquisition

from page 45

with

The estimated overall

Columbia.

British

in

16, it was stated that the company plans to issue
and sell $6,000,000 of preferred stock in March and an

pected

March.

San

with

Proceeds—To

Probable bidders: Halsey, Stuart & Co. Inc.,
Pierce, Fenner & Beane and White Weld
& Co. (jointly); The First Boston Corp.; Equitable Se¬
curities Corp.; Lehman Brothers and Blyth & Co., Inc.
(jointly); Harriman Ripley & Co., Inc. and Union Se¬
curities Corp. (jointly). Proceeds—For construction pro¬
bidding.

Diego Gas & Electric Co.

ding. Probable bidders: Halsey, Stuart & Co. Inc.; Blyth
& Co., Inc.; Merrill Lynch, Pierce, Fenner & Beane; The
Boston Corp.; White, Weld & Co. and Shields &
(jointly); Lehman Brothers.
Proceeds—For expan¬

First
Co.

7

sion program.

(2/13)

Chicago, III.

★ Oliver Corp.,

Dec.

rights for
common
stockholders to subscribe to approximately
171 000 shares of additional common stock (par $1) on
a
basis of one new share for each five shares held on
or about Feb. 13; rights to expire on Feb. 27.
Traditional
Underwriters—Blyth & Co., Inc.; Merrill Lynch, Pierce,
Fenner & Beane; and Paine, Webber, Jackson & Curtis.
Proceeds—To retire bank loans. Business—Manufacture
authorized the issuance of

directors

22

bids

19 it

Northwest Pipeline

Aug. 29 it

Kuhn, Loeb & Co.; Blyth & Co., Inc.; The First
Boston Corp. and Harris, Hall & Co., Inc. (jointly). These
Inc.;

Corp.

bankers

applied to the FPC for authority to

cannot
market
include

revised

a

financing

may

announced

was

in

that

company

plans to spend

der, Peabody & Co.; Union Securities Corp. and White,
Co.

(jointly); Kuhn, Loeb & Co.; A. C. Allyn
Co., Inc.; Equitable Securities Corp.; Shields & Co.
and R. W. Pressprich & Co. (jointly). (2) for preferredSmith,

Barney

&

Co.

Thiokol

and

Kidder,

Peabody

&

Co.

(jointly); W. C. Langley & Co. and Glore, Forgan & Co.
(jointly); Kuhn, Loeb & Co.; Lehman Brothers and
Salomon Bros. & Hutzler (jointly); Harriman Ripley &■
Co., Inc. Offering—Expected in mid-year.

Nov. 16 directors authorized

Pennsylvania

Jan. 7 it
soon

was

of

one

with substantial equipment trust

it

20

Jan. 22, it was disclosed the company

received

Bros.

&

shares of

common

stock,

will-soon
or

announce

bonds,

or

both.

inclu¬
Salo¬

Hutzler; Harriman Ripley & Co. Inc. and

(jointly).

Union Gas Co.

19 it

was reported company is expected to do some
equity financing before June 30, 1952. Traditional under¬
writer: Blair, Rollins & Co.
** '

it Southwestern Gas
Jan.

18

it

&

reported

was

Electric

Co.

is planning to

issue
30-year first

company

and sell $5,000,000 to $6,000,000
of new mortgage bonds.
Underwriters—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart

1,000,000

tional

to

There

increase
are,

financing.

the

Nov.

16

it

common

a

limit

of

unsecured

indebt¬

Transcon
Nov.

it

19

stockholders

will

in

250,000 shares




(all outstanding)

'

7

that

the

company

expects

to

stock is anticipated.

Probable bidders:

April,
com¬

to 1,-

Lines, Los Angeles, Calif.
reported

was

issuance and sale
which will
&

may

company

of additional

involve

about

common

*

/

be considering
(par $10^

stock

Underwriter—Crut-

$200,000.

Co., Chicago, 111.

;

Upstate Telephone Corp. of New York
Dec.

10

corporation applied to New York P. S. Commis¬
authority to issue $1,000,000 first mortgage bonds
(probably privately) and 4,000 shares of common stock

sion for

(par $100) to General Telephone Corp., the parent.

Virginia

Electric &

was

Power Co.

announced that company

or

for

more

new

expects to spend
construction in 1952, of

about

financing.
next

$30,000,000 may be raised through new
The company is said to be considering a stock
spring and a bond sale in the fall. Under¬

stock, probably Stone & Webster Securities
For bonds, to be determined by competitive bid¬
ding, with the following probable bidders: Halsey, Stuart
Corp.

& Co. Inc.; Union Securities Corp.; Salomon Bros. &
Hutzler; Stone & Webster Securities Corp.; White, Weld

Co.; Kuhn, Loeb & Co. and Wertheim & Co. (jointly).

★ Washington Gas Light Co.
Jan.

12

raise

that company is considering plans to
$4,500,000 from the sale of additional com¬

reported

about

mon stock to its stockholders
(there are presently out-,
standing 734,400 shares). Underwriters—The First Bos¬
ton Corp. and Johnston, Lemon & Co. handled the offer¬
ing last year to stockholders/ Proceeds—Together with
bank loans and other funds to take care of proposed

$6,000,000 expansion program.

Expected in March.

struction

7

it

announced

was

that

entire

the

outstanding

issue of 10,000 shares of common stock of this

has

been sold
of

company

by Cities Service Co. to Ray C. Fish and

Houston,

Tex.

$6,000,000

to

The

new

about

*

Washington Water Power Co.

owners

plan

expand

contingent

the

upon

borrowings of $40,000,000, the proceeds to be used
to finance contemporarily, in part, the company's con¬
program.

"

&

Stuart

Co.

Inc.

being

gas

28

Penn
it

000.000

of

in March.

was

was

announced company

ferred

stock

Underwriter

(par $20).
—

Proceeds—For

J.

M.

Minn.

&

Co.,

pre¬

be announced

later.

Minneapolis,

6

company

mated cost of

be

pipeline facilities at

an

esti¬

$33,752,705. It is planned to finance proj¬

placed privately.

scheduled
1.

tively

for

Feb.

28.

Bids—Expected4 to

be

Underwriter—Bonds may

Previous preferred stock financing

handled by Dillon, Read & Co. Inc.

opened April

4

Corp.

C. E. Kohlepp, President, announced

company

plans to build a $12,000,000 steam turbine power plant

through sale of first mortgage bonds and other securi¬

was

Inc.; W. C. Langley & Co.; The First Boston Corp. Pro¬
ceeds—For construction program.
Registration—Tenta¬

Sept.

applied to FPC for permission to con¬

ties and from cash in treasury.

plans to offer $12,-

Probable bidders: Halsey, Stuart & Co. Inc.;

Wisconsin Public Service

working capital.

struct additional natural gas

(4/1)

company

Minn.

Texas Gas Transmission Corp.
Dec.

Co.

Kidder, Peabody & Co.; Lehman Brothers; Blyth & Co.,

plans to issue and sell

Price—To

Dain

Power

announced

first mortgage bonds early in 1952, probably
Underwriters—To be determined by competi¬

tive bidding.
Jan. 21 it

,

to

.

it Superior Separator Co., Minneapolis,

Permanent financing expected later

Probable bidders: (1) For stock or bonds:
Blyth & Co., Inc.; Smith, Barney & Co. and White,
Weld & Co. (jointly); W. C. Langley & Co. and The
First Boston Corp. (jointly); (2) for bonds only: Halsey,;
year.

firm's

Spokane

natural

applied to the SEC for authority to make

bank

Dec.

system,

piped into eastern Washington.

Co., Pittsburgh, Pa.

proposal to increase the authorized

stock from

an

Pierce, Fenner & Beane; W. C. Langley
&
Co.; Lehman Brothers and Smith, Barney &.Co
(jointly).

Jan. 9 company

ect

announced

was

2D52, vote on
mon

(H. H.)

(with

White &

reported

was

Inc.; Kuhn, Loeb & Co.; Salomon Bros. & Hutzler;
Lynch, Pierce, Fenner & Beane and Union Se¬
curities Corp. (jointly); Lehman Brothers; White, Weld
& Co.; Harriman Ripley & Co., Inc.; The First Boston
Corp. Proceeds—For 1952 construction program. Bids—
Merrill

however, no present plans for addi¬
In
November, the company sold

through Morgan Stanley & Co., Drexel & Co. and Glore,
Forgan & Co. an issue of 249,942 shares of 4.70%
cumulative preferred stock (par $100);. thus
exhausting
the amount of presently authorized preferred stock.
Robertson

G.

& Co.

early in February 13,950 shares of 6% convertible

Electric

& Gas Co.
Jan. 17 stockholders approved a proposal to increase the
authorized
preferred stock from 500,000 to
and

held

per

Merrill Lynch,

&

Southern
Dec.

distribution

Underwriter—Blyth & Co., Inc. Proceeds—
To refinance, all or in part
$9,000,000 of bank loans
which mature May 1,. 1952.

edness.

shares

approximately $46,500,000 for expansion in 1952
to 1955, and it has been stated that no further financing
is contemplated before late 1952, when about 400,000

which

Feb. 20 for the purchase from

on

Traditional

shares

each -i 13

spend

West

Service

.

offering to stockholders

an

writers—For

spend

Public

,

share. Under¬
Co., Inc., New1 York'
Proceeds—For expansion and working capital, v

15, 1952 and due in 30 equal semi-annual

associates

v.

★ Portland General Electric Co.

.

for

writer—Probably J.

$40,000,000

(2/20)

installments from Sept. 15, 1952 to March 15, 1967,
sive. Probable bidders: Halsey, Stuart & Co. Inc.;

Jan.

be in the market
certificate offer¬

Bros. & Hutzler.

new

share

new

issue

RR.

stated that company may

plans for sale of

V

"."f-^

oversubscription privilege). Price—$9

Dec. 12 it

Spokane Gas & Fuel Co.

ings. Probable bidders: Halsey, Stuart & Co. Inc.; Salo¬
mon

Lynch,

pf about 23,539. shares of capital stock (par -$1} on basis

this

.

; "

issue

may

Corp., Trenton, N. J.

$6,000,000 equipment trust certificates to

for expansion in 1952, to be financed,

$4,500,000 of preferred stock and $4,500,000 of
common stock (the latter issue to parent, General Public
Utilities Corp). Underwriters—For bonds and preferred
stock to be determined by competitive bidding. Probable
bidders: (1) for bonds—Halsey, Stuart & Co. Inc.; Kid¬
&

Ry.

Lehman Brothers

bonds,

Weld

company

(jointly);/Kidder, Peabody & Co. and Merrill
Pierce, Fenner & Beane (jointly). >'
*

be dated March

sale of about $9,000,000 first mortgage

part, by the

'

Co.

reported

was

the company of

,

it

5

be

will be

Bids

file in February
proposal with SEC. The previous
company

Electric Co.

about $26,000,000

issue of 3 Vs % first and

Registration—Expected to be made in February.

mon

Jan.

the $30,000,000

determined, and will depend in part or
conditions existing from time to time and may
temporary bank loans.

now

Southern

21,

Pennsylvania

for

18 it was reported that company plans to issue and
$30,000,000 first mortgage bonds, series A. Undecr
writers—To
be
determined
by
competitive
bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Lehman
Brothers; Merrill Lynch, Pierce, Fenner & Beane and
Harris, Hall & Co. Inc. (jointly); White, Weld & Co.;
Blyth & Co., Inc. Proceeds—For construction program.

proposal to issue 100,000 shares of common stock (par
$2.50) through F. S. Moseley & Co. was withdrawn on
Dec.

bid

sell

Inc.

reported

was

to help finance a
Including the Texas

years

and sell
around 400,000 additional shares of common stock early
in 1952. Probable bidders: The First Boston Corp. and
Blyth & Co., Inc. (jointly); Union Securities Corp.;

Jan.

applied to Federal Power Commission
for authority to issue and sell $12,500,000 of first mort¬
gage bonds to a group of institutional investors. Proceeds
would be applied to construction program, including the
Yale hydroelectric project on the Lewis River in Wash¬
ington.
Controls,

Utilities

it

24

tenden

28 company

it

Texas

Sept.

it Southern California Gas Co.

,

11

two

program.

Co., the following subsidiaries may do some
financing: Dallas Power & Light Co., Texas Power &
Light Co.; and Texas Electric Service Co. Information
as
to types of securities to be sold and timing of the
offerings is not available at present.

mortgage bonds which were sold recently.
nature, amounts and timing of the hew financing

The

Pacific Power & Light Co.

Jan.

next

refunding

2,175-mile natural gas pipeline from southern
to the Pacific Northwest at an
estimated cost

Penn

announced company may have to raise

was

Probable bidders for bonds: Halsey Stuart & Co.

gram.

$174,186,602.

Dec.

the

expansion

Utilities

Nov.

approximately $49,900,000 more through additional fi¬
nancing to take care of its 1951-1952 construction pro¬

hot ail

The line is sponsored by Fish Engineer¬
ing Corp. of Houston, Tex.
Probable underwriters:
White, Weld & Co. and Kidder, Peabody & Co., New
York. (See also accompanying item on "Spokane Gas &
Fuel Co.")
"
;
of

within

$125,000,000

Toledo Edison Co.

a

Texas

filing registration statement and inviting
Probable
bidding for issue in the spring.
Lehman Brothers and Bear, Stearns &
Co.

Southern California Edison Co.;

stockholders.
Business—Manufactures
furnaces.
Offering—Expected in January.

build

Co.

was

(jointly)-; Allen & Co.

selling

Pacific

Corp. now reported to be

submitted. United

were

bidders:

was

Jan. 7 the company

Corp. asked for bids up to 11 a.m.

United

considering
competitive

reported early registration is planned of
about 225,000 shares of common stock.
UnderwriterMcDonald & Co., Cleveland, O.
Proceeds—To certain

Oct.

the

21

;

Inc., Elyria, O.

Olsen,

Utilities

Jan. 16 it

Brothers and Bear, Stearns & Co. (jointly);
Goldman, Sachs & Co. and Harriman Ripley & Co. Inc

Co.

(EST) on Jan. 10 for the purchase from it of its entire
interest, amounting to 28.3%, or 154,231.8 shares of $5
par South Jersey common stock, with bidders to pur¬
chase the stock for investment and not for resale.
No,

equipment.

and sale of farm

-

Lehman

■

Registration—Expected by the end of January.
South Jersey Gas

Jan.

for new construction.

pay

July 19, L. M. Klauber, Chairman, announced that the
company plans to sell $10,000,000 of bonds early in 1952
Underwriters—To be determined by competitive bid¬

Merrill Lynch,

gram.

★ Texas

securities

privately.

Electric Co.

was

in the market

Co., Houston, Tex.

applied to FPC for authority to construct a 1,350-mile natural gas transmission line extend¬
ing from Texas into West Virginia. The project is esti¬
mated to cost $184,989,683.
Underwriter—Kidder, Pea¬
body & Co., New York.

reported that company and its subsidiaries
may have to raise about $95,000,000 through the sale of

York.

reported that the company expects to be
a $12,000,000 bond issue, probably in
Underwriters—To be determined by competitive

it

Jan. 21

Gas

company

planned, probably for the Spring of 1953. Underwriter—
For preferred issue may be The First Boston Corp., New
Previous first mortgage bond financing was done

Morgan Stanley & Co., New

^ Oklahoma Gas &

17

equal amount of general mortgage bonds in September.
An
issue
of
about $8,000,000 common
stock is also

cost of the

approximately

is

Texas-Ohio
Oct.

Jan.

$92,000,000.
UnderwriterYork. Financing—Not ex¬
until after Provincial elections in April.

project

Electric Corp.

&

Gas

Rochester

the Pacific Northwest to

in

system

declaration oj

stock dividends.

transport
gas from Canada to markets in Idaho, Washington and
Oregon, with a portion to be returned to Canada for use

mission

stock available
of new proper¬

ties, to provide additional capital funds or

Co.

filed amended application with FPC in
its plan to build a natural gas trans¬

7 company

connection

Gas

Natural

Northwest

.

.Thursday, January 24, 1952

..

(410)

in Marathon

ing has
bidders
First

County, Wis.

Method of permanent financ¬

not yet been determined.
If bonds, probable
may include:
Halsey, Stuart & Co. Inc.; The

Boston

Corp.; Harris, Hall & Co.

(Inc.); Kidder,

Peabody & Co.; Carl M. Loeb, Rhoades & Co.; Salomon
Bros.

&

Hutzler; Union Securities Corp.; Merrill Lynch,

Pierce, Fenner & Beane; Shields & Co.

-

Volume 175

Number 5084

.

The Commercial and Financial Chronicle

.

.

slow-side

along with
the

ments of
and

Our

of

there

new

was

other

backing

Illinois PS Pfd. Stk.

moment

relatively clear.

writing

At the start of the week it was

indicated that remnants of recent

offerings

had

dwindled to

about

$4,670,000, which meant that there
With

the

Triborough Bridge
Authority's huge con¬
loan now out of the

and Tunnel

solidation

underwriters

way, "

attention

to

Co.

Aluminum

$175,-

aggregate

will

000,000.

(Special

These

next week,
$50,000,000 of

collateral

and

due to

are

early
Gas

United

with

first

undertakings

market

reach

to The

Financial

CLEVELAND,

rejoined Ball,
Burge & Kraus, Union Commerce

Proceeds

The

major

sells

in the

size for the corporate
field this year, and which is being
done on a negotiated basis.

indicate

Reports

undertaking.

a

Building,
York

members
Midwest

and

changes.
conducted

his

funds.

business

Cleveland

Indications

,

on

that this

are

issue,

.if. terms meet ideas of prospective

could wind up with the
sponsors finding themselves forced
to allot debentures against a siz¬
able oversubscription.

past

Mr.

&

Indiana

Electric

Michigan

Co.'s $17,000,000 of bonds and $6,-

000,000 of serial notes brought out
lively bidding on Tuesday with
seeking the bonds and

five groups

bidding for the notes.
brought a top bid of
100.589 for 3%s and were priced
for reoffering at 101 y4 to yield
3.185%, while the notes brought
a
top bid of 100.4629 also for a
3y4% coupon, and were reoffered
at prices to yield 2.75% for the
1956 maturity to 3.20%
for the

in

own

trading

was

investment
and

Getting

;

to

away

the bonds later
have

attracted

slow start
reported to

large-scale

orders

state pension fund and thereafter

moving briskly.
Small Issues

for

manager

Titus-Miller
scot

in

the

near

future.
ex¬

pects to file shortly with SEC to
or

new common

stock

or

bonds,

possibly both.
The

some

debt

would * be to re¬
$9,000,000 of short-

which

has

been

in¬

The company has a $9,000,promissory note which comes
due for payment on May 1 next.

tion.

Power

HIGH

POINT, N. C.—John A.
Fitzgerald has become associated
with Courts & Co., members of
the New York Stock Exchange.
He was formerly representative in
High Point for R. S. Dickson &
Co., Inc.

&

the

CLEVELAND,

Ohio

staff

Walnut

1003

Chronicle)

'

•

'

"y

certificates

opened

found the market in

on

—

Bernard

Jaffe, Siegler and Com¬
Union Commerce Arcade,

members

of

the

Midwest

Stock

rather

re¬

ceptive mood.
a

end; this marked

DIVIDEND

today declared

Mass.

Kidder,

75

was a

frit

share

ten

on

the

year-

on the <




day
sev¬
pay¬

Brown, Jr., Secretary
>

WoQDALL

•• .-v'

C. L. swim,

Secretary

Jan.15,1952

A regular quarterly dividend of
31%# per share on the' 5% Con¬

vertible

V'-

■{

'

—

1

THE

SOUTHERN

W.
the

to

COMPANY

Peabody &■ Co.,

A

regular quarterly dividend

of 300 per share on the Common
Stock has been declared payable

Directors of The Southern Com¬

meeting held

pany, at a

on

21, 1952, declared

uary

share

the

on

GRIFFIN,

Secretary-Treasurer.

per

outstanding shares
stock

common

M. E.

Jan¬

a quar¬

terly dividend of 20 cents

:

Stock has been

February 29, 1952, to stockholders
of record February 15, 1952.

(INCORPORATED)

James

Preferred

declared payable March 1, 1952, to
stockholders of record February 15,

Beane,

■

IN bus TRIE si | NC.

payable

INTERNATIONAL

on

of

the

Com¬

March 6, 1952

holders of record at the close

of business

HARVESTER

February 4, 1952.

on

L. H.

Jaeger, Treasurer

Atlanta, Georgia

COMPANY

er

Southern

—

Company have declared quarterly

dividend

Chronicle)

No.

of

134

one

dollar

Com¬

($1.75) per share on
preferred stock payable March 1,
1952, to stockholders of record at the

Building, members of the
Stock
Exchange.
Mr.

the

close of business

on

Edison

and

Ivan V. seventy-five cents

Cunningham & Co., Union

BENEFICIAL

Feb. 5, 1952.

LOAN CORPORATION

GERARD J. EGER, Secretary

formerly with the First
Cleveland Corporation.

DIVIDEND NOTICE

was

CUMULATIVE

ALUMINIUM LIMITED

(Special to The Financial Chronicle)

ST.

LOUIS,

Effrein

has

Mo.—Anthony
become

Effreiri

number

of

&

Bank

was

years

with

for

DETROIT,

Mich. —William

COMMON STOCK

$.50

Benjamin has been added to the
Baker,

Simonds

Building,. members

Detroit Stock/ Exchange.

&

of

Co.,
the

per

The dividends

1952, a quarterly
dollar per share

January 22,

U.
no

pany

A.

CUMULATIVE PREFERRED STOCK
4.08%

SERIES

DIVIDEND NO. 8

S.

of

One

currency

par

was

declared

on

payable March 5th, 1952, to
February 4th, 1952.

Montreal

The Board of Directors has

authorized the payment of the
following quarterly dividends:

251/*

cents per

share On the
Stock,

JAMES A. DULLEA

30V2 cents per share on the'
Cumulative Preferred Stock,
4.88% Series.

share

The above dividends

are

able

of

stockholders of record Febru¬

record

at

are

close

of

business

pay¬

February 29, 1952,

to

Philip Kapinas

5, 1952. Checks will be
mailed from the Company's

Treasurer

office in Los Angeles, February

March 14, 1952.

value Shares of this Com¬

January 22, 1952

SERIES

DIVIDEND NO. 17

payable
March 31, 1952 to stockholders

January 18, 1952

ary

29, W2.

shareholders of record at the close of
business

4.88%

Cumulative Preferred

Quarterly Dividend of

the

Chronicle)

Company

DIVIDENDS

4.08% Series;

NOTICE

On

The Financial

share

March 31, 1952)

Barrett-

Baker, Simonds Adds

per

(for quarterly period ending

a

Co.

$.81 Va

DIVIDEND

in

to

'

B.

Building.

formerly

STOCK

PREFERRED

$3.25 Dividend Series of 1946

associated

Bramman-Schmidt-Busch,
Boatmen's

California

CUMULATIVE PREFERRED STOCK

Dividends have been declared by
the Board of Directors, asfollows:

Joins Bramman-Schmidt

Buhl

Charles D.

January 22, 1952

1952.
'

added

been

City.'

CLEVELAND, Ohio

of

share,

the close of bus¬

at

W.

to

Smith has become connected with

(Special

per

common

iness January 30, 1952.

Merrill

Federal Street.

L. Mansbach is engag¬

(Special to The Financial

Mr.

quarterly dividend of

cents

per cent

record

of

With Cunningham Co.

Inc.

a

DIVIDEND NOTICES

York

with

No. 26

quarterly

a

cash dividend of 75

Financial Chronicle)

has

ing in the securities business from
offices at 221 West 82nd Street,

Smith

Street, New York 17, N. Y.

able on March 15,
i952 to stock¬
holders of record, March 1, 1952.

The Board of Directors has

c

Edward Mansbach Opens

merce

CORPORATION
60 E. 42nd

enty-five cents (75^)

NOTICE

SKELLY OIL COMPANY

pany,

staff

while, around the

President.

stock divi¬
dend, both payable March
5,1952, to stockholders of

Kidder, Peabody

staff

of

with

/

Pilcher

Exchange.

Edward

WEST INDIES SUGAR

WARREN W. BELL,

Ex¬

Stock

which

yesterday,
a

15, 1952, to holders
February 11, 1952.

Street.

to The

dividend

New York Central System's of¬
fering of $8,850,000 of new equip¬

Fcr

February

the

Fenner &

.•

BOSTON,

Equipment Trust Notes

were

the Common Stock

on

Penob¬

Mo.—Carl

now

Lynch, Pierce,

of

pany,

HANNAN,
Secretary

Stock

Company, both payable

of record

of

of

members

CITY,
is

Backlund

(Special

S. Haffner has been added to the

Herrick

trust

the

D.

Financial Chronicle)

to The

KANSAS

Jaffe, Siegler

(Special to The Financial

KENNETH H.

stock of this Company, also

Joins

three years.

bids

of

at

the close of business Feb. 1, 1952.

quarterly dividend of 15c

a

share

a

Preferred

declared, payable Mar. 3,

stockholders of record

to

^declared-

staff

Company,

Midwest

and

(Special

;

Joins

&

Light Co. proposes to offer for
competing bids $5,000,000 of new
preferred with the proceeds to be
applied
toward
financing
con¬
struction
planned
in
the
next

ment

and

With Merrill Lynch

Chronicle)

000

Delaware

quarterly dividend
share on the $1.35

Cumulative

Fitzgerald With Courts
to The Financial

per

The Board of Directors has this

curred in financing new construc¬

Meanwhile

a

33%c

a

Midwest

purpose

finance
term

a

of

has

Directors

of

per

(Special

dividendof

Fifty cents
share on the outstanding
capital stock of this Corporation
(50$)

1952

The Directors of International Harvest¬

Portland General Electric Co,
issue

declared

38,500

Mich. —Harold

Building,

Detroit

Projected

utility
companies
have
disclosed plans for marketing of
issues

Board

changes.

New

Two.

small

The

a,

were

from insurance companies and one

were

to

cash

has been

distributes

gas

joined

the

in

Ball, Burge & Kraus.

The bonds

1967 series.

COMPANY
Dividend Notice

to The Financial Chronicle)

has

Beadle

foUr others
-

natural

DETROIT,

Ex¬

formerly

Robbins

.buyers,

Indiana & Michigan

TIDE WATER POWER

central and south¬

also

ucc
A

territory. For the 12 months

(Special

New

Stock

the part of
large investors, including pension

widespread interest

AM) CARSON CORPORATION

On Titus-Miller Staff
the

of

Union Carbide

COMMON DIVIDEND

Wm. T. Robbins

needed

of this vast

DIVIDEND NOTICES

distribu¬

and

January 21,1952.

Market observers are convinced
success

addi¬

and

the company
reported total operating revenues
of $27,207,463 and net income of
$4,878,143.

the peak in

the

a partnership to en¬
in the securities business.

gage

ended Oct. 31, 1951,

issue of debentures which will set

Apex Building.

have formed

supplies electric¬

It

*"

Harvey L.

Burton is engaging in the securi¬
ties business from offices in the

DIVIDEND NOTICES

in

areas

—

Ohio—Robert
G. Gisinger and William J. Lydic

customers in 20 communities with¬

.

assure

Reed, Inc., of Kansas City.

preferred stock is re¬
at
$104
per
share

new

with Waddell

now

Harvey Burton Opens
SALISBURY, Md.

Gisinger & Lydic Open

electric

new

equipment

Illinois.

and

interest
.naturally centers in Aluminum
Co.'s
contemplated
$125,000,000

to

for

be

Chronicle)

MILLERSBURG,

ity to about 217,900 customers in
500
communities
and
ad j acent

the business.

that only proper pricing is

&

from

and

construction program
period Nov. 1, 1951-

will

Company, 124%

Morgan Square.

$5,000,000 of

tion facilities.

ern

the

sale

transmission

tional

rural

with Calhoun &

HAMILTON, Ohio —Robert W.

per

bonds will be applied to the

The company

On

Meanwhile

the

of

deemable

Wednesday
or
Thursday,
depending upon ■, the
speed with which : the Securities
and Exchange Commission clears
materialize

($100

through Dec. 31, 1955, and there¬
after at prices decreasing to $101.

would mean that
actual reoffering probably would
This

dall Hobbs has become associated

associ¬

Breidenthaf is

generating

William

Dorset.

is

(Special to The Financial

share).

ditures

slated for competitive bidding on

Tuesday.

preferred stock at par

Ken¬

in

With Waddell & Reed

31, 1953, is estimated to cost
$45;000,000. The principal expen¬

bonds

trust

50,000
Public

5y4% cumulative

new

SPARTANBURG, S. C.—H.

offices

McConnell

Jan. 23

sale

Illinois

Dec.

has

Robbins

T.

—

,

from

W.

ated with him.

which for the

Chronicle)

Ohio

on

public

Central

company's

Rejoins
Bail, Burge & Kraus

United Gas Corp., projects which

.together

for
of

Service Co.

new

W. Bobbins

and

America,

offered
shares

whiph

group

the proposed sale of

forthcoming

of

a slash of some
$3,500,000
backlog within the week.

their

turned

the

-

had been
in the

Grant

Boston

were

(Special- lo The Financial Chronicle)

business

Blyth & Co., Inc., and The First
Corp. headed an under¬

dealers' shelves at the

night and

47

With Calhoun & Co.

DORSET, Ohio—Russell McCon¬
nell is engaging in a securities

undergone

marked change in the last fort¬

a

Russell McConnell Opens

Bankers Offer Central

up

issues.

new

But conditions have

Reporter's
Report

seg¬

picture

money

some

(411)

p. c.

OVER

700 OFFICES

hale,

Treasurer

January 18,1952

Secretary
3222£

The Commercial and Financial Chronicle
<S3

..

Thursday, January 24,, 1952

.

(412)
commands, at prices and.sizes of

BUSINESS BUZZ

deter¬

Government

the.

houses

mines, for rentals and sales prices
fixed

by regulatory decree.

(This column is intended to re¬

flect the "behind the scene'' inter¬
pretation from the nation's Capital
not coincide with
the "Chronicle's" oxen views.)

and may or may

take

budget for the fiscal year 1953
t>rings into sharp relief not only
what a road the Federal Govern¬
ment has traveled but how far it

stances.

road, since
impulsively initi¬
ated the "police action" to counter
the Red invasion of South Korea

program

tias moved down that

President

the

Midwest Forum of

steps might be
under
the
circum¬
The costs of added mili¬

whatever

WASHINGTON, D. C. —Presi¬
dent Truman's proposed Federal

necessary

National Analysts

should

Europe

if

tary strength,
succumb
to

CHICAGO,

totalitarian
rule,
costs of the

of economic aid now
Congress."

fore the

Jan.

powerful
maintained

never

recom¬

budget are the
this nation has

this

in

mended

L~«nost

This, it b repeated, was

peacetime,"

in

the President said three years ago.

principal
objective
we
should have in mind in planning
tor our national defense at this
time is to build a foundation of
•The

military strength which can be
sustained for a period of years
without excessive strain on our

security"

on

on

Lewis

will

The

Meat Packing, and
on

dinner

& Belding Willi
gathering on "Fitting ;

the

as

are

.j

'

<

.

open

and
reservations
by Jan. 25 with

person

be made

should

posed by the President for '53 is
$65.1 billion, or more than nine
times what the timely investment

Business Ap-;

a
;

to guests as
members. Tickets are $6.60

Meetings
ell

Gordon Buck

Cone

Foote,

per

itself, will

meeting

Advertising into
praisal."
v
w

M.j

Paul

'

Electronics.

be held at 6:45 p.m.

address

George

metals;

new

on

Galvin

V.

pro¬

of
$7 billion by Congress four
resources, and which
years ago was supposed to avoid.
permit
rapid
expansion
*
'<>
'
should the need arise. The recom¬
If Mr. Truman a few years ago
mendations in this budget move
toward this objective.
I believe seemed to have large confidence
about the future security of the
that they will permit this nation
free
world under the
Marshall
to maintain a proper military pre-;
paredness in the present uncer-'/ Plan, and the adequacy of U. S.
military forces in the then "un¬
tain period."
certain period," he. appears by
Three years later, or on last;
contrast to have a little less con¬
fVIondav, the President submitted
fidence this January 1952 abput
ei budget calling for the expendi¬
future broad trends.'
v
'f.
ture of $51,163 million for the;
In abondoning budget-balancing,
military services of© the United
^States alone. This is just slightly the President did not put a time
iess than four times the military limit on when deficit financing,

various j

p.m.

be held
Joseph R. Bentert speaking
Synthetic Fibres; Dr. R., S.

of

programs

5:30

to

discussions

Dean

And the total

military costs.
"all

Hotel

Salle

La

with

four years ago has not
avoided a request by the Presi¬
dent for fiscal '53 of more th^n
seven
times that $7 billion sum
for

4:00

From

sought

of

the

at

auspices of the Invest¬
Analysts Club ,of Chicago.;

pa^iel

billion

$7

the

30,

ment

not overrun Europe.

Nevertheless,

National

Analysts

under the

have

The Communists

recovery.

forces

military

"The

the

of

Societies will be held Wednesday,

$7 bil¬
lion which Mr. Truman was four
et the end of June, 1950.
years ago asking for, the price of
Mr. Truman on Jan. 3,1949, sub¬ its refusal being, in Mr. Truman's
mitted the "proposed budget for formal opinion, added costs for
the fiscal year 1950 — the year U. S. military strength.
which ended with the Korean war.
For
the
most
part,
Congress
*n that budget of three years ago
provided the funds demanded for
the President proposed the expen¬
Marshall Plan aid.
Europe has
diture of $13,219 million for na¬
had an admittedly large economic
tional defense.

Fourth

The

—

Financial

of

Federation

be¬

111.

P'orum

Midwest

far exceed the

would

Russell

J.

Eddy, Brown Brothers,
Co.,, Chicago.:

Harriman

&

"B. O. had it made to order!"

productive
will

'

,

.

•

,

by

proposed

expenditures

the

abandoned.

in its turn, can be

"A

three years ago.
pay-as-we-go tax policy is diffi¬
And, the avowed purpose of the cult to regain, once we fall be¬
current $51.1 billion is precisely hind," he said. He said that aban¬
budget - balancing
pre¬
the stated purpose of the $13.2 doning
t>illion of three years ago: To pro¬ sented Congress "with dangers."
In his opinion, "prudence demands
vide a "short of war" and "de¬
President

terrent to war" military establish¬

constitute the
expansion
"all-out" war.

ment which would

fcase
tn

for

of an

case

a

tion.

said

size,"

its

"Despite
^Truman
•mot

enormous

an

Mr.

Jan. 21, 1952, "this is

on

budget for all-out mobiliza¬
It
is a
budget carefully

that

we

policy
He

return to

as

quick

the

the

expressed

expanding

pay-as-we-go

a

practicable."

as

return

in

the

boost

would

taxes

from

that

hope

economy

future

ure

While the former

prediction of
in
defense

off"

"tapering

a

million

$7,250

and

Congress for the cur¬
On the

hand, if $3.4 billion is to be
spent in one fiscal year this would
leave only $4.5 billion for an en¬
suing year. This would seem to

to

other

.

lion.

By '53 they will run to $27.8
trillion of combined income and
excess

profits taxes, or

a

rise

ap¬

i'f

for

«tsked

sjs

years

$7

foreign aid

ago

Mr.

programs

not debatable" air.

It

Truman
for various

with
was

an

"its

the be¬

ginning of the Marshall Plan.
"The

is

new

international program

our answer to an

unprecedented

challenge," Mr. Truman declared
four years ago.
"The budgetary
r

would submit

implications of

and

he

President,

the

pro¬

foreign
of $7.9 billion.
a new

that

that

a

further

extension

of

totali¬

tarian rule, we would have to re¬

examine

our

year

from now.

The

a

President

we

and by

stimulating European mili¬

tary production will help to bring

that

indicates

nearer the day when Europe will
assistance will consist of
be
able to maintain her forces
four kinds: (1) foreign arms as¬
without; further assistance from
sistance, (2) economic assistance,
us," the President said.
(3) "off-shore" or foreign pur¬
Mr. Truman likewise gave no
chases of arms, and (4) Point IV
"technical assistance to backward break-down of estimates for pure¬
areas." *
ly economic aid, but emphasized
the U. S. will have to expedite
It
does
not
appear
that the

foreign

.

President

reveals

how

much

deliveries under economic aid.

he

#

will

spend for each of these ob¬
jectives, although he does hint
that $8 billion of the $10.5 billion
either

shore"

be

for

arms

or

There

cellaneous

"off¬

message:

purchases.

The Pentagon
of

foreign

facets

to

on

,Prof. K. W. Gordon, Assistant
Department of 'Exten¬
sion, is acting as collaborator.

Director,
The

purchases

because

M.

&

Sons;

W.

Richardson

Nay

&

that

James;

the

mis¬

Co. Ltd.

-

the

$275

billion
the

June

1953,

30,

limit.

He

TRADING MARKETS

Caribe Stores
Eastern

appar¬

until next
if defeated, leave that

''

The

National

cluded

in

the
in¬

So

was

Machine

Company

go¬

was

Congress,

the

for
now

increase

pay

through

Racing Ass'n

Gear Grinding

successor.

military of $832 million,
ing

Willoughby &

Boston Herald Traveler

the
to

that

duck

January or,
(2)

Wood,

budget

present statutory
be reached at

debt

will

his

Dakin,

W.

Beale,

R.

,

President did not ask Congress

to

Sons;

Gundy & Co. Ltd.; N. R. Edwards,
Richardson
&
Sons;
F.

would

limit

ently

Warner,,; James

V.
&

Poutney, Houston,
of

follows:

as

"

debt

raise

are

Forrest, James Richardson

estimates.

Polaroid Co. 1st Pfd.

^Riverside Cement "B"
*Seneca Falls Machine

$290 million for aid to education,
*

doubtful of enactment.

Write-up available

,

.

(3)
starts
units

they

effect of lessening

European expenditures and

lecturers

R.

James

*

number

a

25.

(1) Although the President pre¬
dicted

is naturally skep¬
or
foreign

"off-shore"

could have the

were

Monday, Jan. 21, to Monday, Feb.

By
will

fiscal
be

months

1953

limited

"or less."

housing

to

or

only

18

400,000 housing units will

be built in "critical defense

mere¬

ly provide indirect economic aid.

where

the

LERNER & CO.

850,000

In the coming

areas,"

Investment

10 Post Office

Securities.

Square, Boston 9, Mass.
Teletype

Telephone

BS 69

HUbbard 2-1990

Government

message,

the

Trading Markets in

Congress if not the Red enemy is

totally

confused

President

has

to

as

in

what

mind

in

the
this

field for fiscal 1953.
The

President

was

unclear

aid

of

all

types

would

expenditures

foreign
result in
of

FIRM TRADING MARKETS

FOREIGN

Allied Electric Products

SECURITIES

Kingwood Oil

on

amounts. He indicated that

$10.5

Standard Cable

HARL MARKS & P.O. INC,
FOREIGN SECURITIES SPECIALISTS

50 BROAD STREET...NEW YORK 4, N. Y.

TEL HANOVER 20050... TELETYPE: NY 1-971

Hill, Thompson & Co., Inc.
Trading Department

tion request.

70 WALL
This has the appearance

security position and ing




President,

message

to
achieve
recovery in
billion plus during the fiscal year
Europe and other crucial areai&jdeperves additional emphasis. Shquld .1953, of which $3.4 billion would
come
out of the new appropria¬
failure of these programs result

An

.

is far
subject of foreign
aid than the budget message, the

clearer

Investment Course.

REGINA,* Sask.;, Canada—The
however, Extension Department of the Uni¬
stressed a growing importance of versity pL Saskatchewan is offer¬
these foreign purchases. "To an ing ih: collaboration with The In¬
The

on.

so

increasing

his

he
special message to

submits

unless

aggregate

failure

a

in

that

message

Congress asking for
Until

j!:

billion

budget

.

aid program

proaching 100%.
Four

latest

indicated

Truman

Mr.

buy

give them

extent, the equipment vestment ; Dealers' Association of
provide will be procured in Canada, a short course on investber, will ask for a much larger Europe. This will lighten the pro¬ ments.,.r$ ■•v* Tv■ v
; ■ ,■
"second bite" foreign aid request duction burden on this country,
The
course
will run
from
that

indicate

vided he is reelected next Novem¬

...

little less than $14.4 bil¬

Italy, and

Univ. of Saskatchewan

Britain

France,

to

them from France and

planned to carry us a long way spending has been variously post¬
arms
purchases.
To the extent
forward on the road to security— poned
from
1953
until
"after
that they provide weapons quickly
«t a pace which is not only within 1954,"
the latter being in the
where they could not be produced
our present economic capacity, but
budget
message,
the
President
Which will enable us to grow now hedges that also considerably. in the U. S., they relieve the
shortage on U. S. materials and
vstronger in the years to come."
"If new international tensions
From Korea
(fiscal '50)
total do not develop, and if no further expedite the delivery of equip¬
ment.
The previous understand¬
federal expenditures have risen aggressions are attempted, I hope
from $37 billion to $85.4 billion, we will be able to reduce budget ing was that out of military assis¬
tance appropriations, the Admin¬
«n
increase of 130.8%.
In fiscal expenditures after the fiscal year
istration would contract for only
#50, revenues aggregated $40.1 bil¬ 1954.
By then we should have
$500 million of such purchases in
lion. For fiscal '53, they are esti¬ completed our currently planned
the current year and $1 billion in
mated at $71 billion, up nearly military expansion," he asserted.
fiscal 1953.
~
$30 billion or about 77%. In '50
Sji
}Js
S'f
corporation income tax payments
Military men are skeptical of
a

them

give

the

purchases,

U. S. could buy rifles from

ap¬

rent foreign aid program.

tical

totaled

"off-shore

Under

materially larger fig¬

the

than

proved by

will

years.

the

to ask for

a

strategem.

It

of be¬

appears

not

-

Tel.

■

STREET, N. Y. 5

WHiteball

4-4840